ST. LUKE'5 HOSPICE (HARROW & BRENT) LTD. REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THEYEAR ENDED31 DECEMBER2022 Company reglslration number: 02141770 Charlty reglstration number: 298555 ST. LUKE'S HOSPICE IHARROW & BRENTI LTD. REPORT AND ACCOUNTS FOR TNE YEAR ENDED 31 DECEMBER 2022 Contents Page Reference and administrative informatlon Trustee5' report (incorporating 5trateglc report) 3-14 Independent auditorfs report 15-17 Consolidated statement of financial actlvltles (incorporating an income and expenditure account) 18-19 Group and Char¢ty Balance sheet5 20 Statement of consolidated cash flow5 21 Note5 to the financial statements 22-39 ST. LUKE'S HOSPICE IHARROW & BRENT) LTD. REFERENCE AND ADMINISTRATIVE INFORMATION Registered Charity Number 298555 Registered Company Number 02141770 Registered Office Kenton Grange. Kenton Road, Harrow, Middlesex HA3 OYG Committee Membership Trustees Margaret Lustman IChairl- appolnted 9.3.23 Dr Gllllan Schiller Ichair up to 31.12.221- resigned 31.3.23 Dr Carole Amobi Christine Glenn Paul Hill- Iinterirn Chair- 20.2.23 to 9.3.231 Sarah LI￿ngstOn Claire Melia-Tompkin5 Neel Radi Raj Thakrar Snehal Shah- resigned 9.8.22 Geralyn Wynne- resigned 12.8.22 Lindsey Bennister- resigned 13.9.22 Carolyn Bennett- resigned 1.3.23 Norma Brier- (Vice Chairl- resigned 1.3.23 r Reena Maju5- resigned 1.3.23 Cllnlcal Governance Finance & Performance Finance & Performance Clinical Governancè Finance & Perform3nce Finènce & Performance Clinical Governance Finance & Perlorm3nce Clinical Governance Clinical Governance Finance & Performan Finance & Performancè Clinical Governance Chief Exetutlve Officer Alpana Malde- resigned 30.4.22 Annie Webber- appointed interim 28.2.22 reslgned 14.10.22 Lindsey Bennlster- appointed 3.10.22 Executive Team Medical Dlrector Director of Patlent Services Dr Charles Daniels Ursula Reeve- resigned 30.9.22 Lorraine Gilbert- appointed 3.10.22 Fran Deane- aPPOlEited 1.8.23 Prabhakar Sundaresan- resigned 7.6.22 Sue Wilson- appointed 1.8.22 Lorna Campbell- appointed 2.5.23 Hannah Richardson- iesiEned 28.2.22 Joanna Pearce- appointed 1.2.22 Director of Quality Director of Flnance & Facilitie5 Director of HR Dlrector of Fundraisin8 Principal Bankers Barclays Bank plc, Lelcester LE87 2BB Avditors Haysmacintyre LLP, 10 Queen Street Place, London EC4R IAG Investrnent Manasers Rathbone Investment Management 8 Finsbury Circus, London EC2M 7AZ Soliotors Icommerciall Curry Popeck Devonshire House, 582, Honeypot Lane, Stanmore, Middx HA7 115 Sollcitors IGoveTnancel VWV LLP 2 Floor 3, Brindley Place, Birmlneham Bl 2JB ST. WKE'S HOSPICE (HARROW & BREwfi LTD. TRUSTEES, REPORT FOR THEYEAR ENDED31 DECEMBER 2022 INTRoDU￿10N FROM THE CHAIR OF TftUSTEES- Meg Lustman I was delighted to be appointed a TrustÈ& In March 2023 and io take up the role of Chair at St Luke'5 Hospi￿. Dr Gillian Schiller's term ol office ended earlier in 2023. On behalf of all at St Luke'5, ourgreat appreaation is expressed to Dr SchilleT for serving 12 years as a trustee and 6 years as Chairman, and also to Norma Brier and Paul Hill for acting a5 vice and interim cha1rs until my appointment. 2022 was a year of sub5t3ntial change for St Luke's as the teams took the requisite actions to regain a Good ratlng from the CQC. ChanÉes to leadership, strategy and operations were initiated. culminating with the appointment of a permanent CEO In October who is now bullding a strong leadership Structure with a Strategic focus on improved quality and delivery. The Board of Trustees also initiated comprehensive governance and health and safety reviews. St Luke'5 is now in a good p13ce, revitalised by new leadership and focus. Post Covid, l am confident that our Services are more needed than ever. The currènt Trustee Board is focused on embedding o Integrated leadership and good governance 3eross executive and board decision-making o irnproved quality and a new model of care including re-establishing services post-covid o improved, sustainable funding and ineome generation o improvements to the infrastructure of the organisation including our physical environment l am grateful for the ongoing dedicatioft and passion demonstTated by all our teams, both staff and volunteers and, on behalf of the Board, offer them our deepest thanks. l am also grateful to all Trustees who served during 2022 to Support st Luke's in a challenging time. As well a5 Dr Gilllan Schiller, we acknowledge the hard work of Norma Brler, Geralyn Wynne, Dr Reena Majus, Carolyn Bennett and Snehal Shah as they stepped down as Trustees after rnany years of dedicated 5ervlce to the Board Looking forward. l am determined that the Tru5teo Board be focused on Understanding the needs of and building relevant relationships wlth key stakeholders to ensure that St Luke's is a valued partneT in our communities including IC8. other Hospice5 and care services within our servlce area Building a strong and Interactive Board of Trustees Ensurlng that our funding 15 diverse, sustainable and flt for our future need5 Ass15ting the Executive Team In order for the H05pice to be assessed as Outstanding In the future During 2023 we will be appointing several new Trustees to the Board to support the delivery of a quality H05PICe. Working together as teams with joint purpose and the appropriate resources, l am confident that 5t Luke's will be well placed to continue to provide our community with outstanding palliative and end-of-life care. TRUSTEES. ANNUAL REPORT YEAR ENDED 31 DECEMBER 2022 The Trustees of Sl. Luke'5 Hosplce (Harrow & Brent) Ltd. (St Luke'5 Hospice) present their Annua1 Repoit for the year ended 31 December 2022 in accordance with the prO￿S1OnS of the Companies Act 2006 and the Charities Act 2011. The audited accounts lor that year are also presented and comply with the Companies Act 2006. the Hospice's governing document and the Statement of Recommended Practice applicable to eharities preparing thelr accounts in accordance with the Finandal Reportlng Standard Hppllcable in the UK and Republic of Ireland IFRS 1021 leffeetive l January 20191. St. Luke's Hospice Harrow & Brent) Ltd. is a company limited by guarantee (registered company number 021417701 and a registered charlty in England and Wales (charity number 2985551. The Hospice was incoiporated as St Luke's H05pice (Harrow & Wembleyl Limited und&1 the Memorandum & Articles of Association dated 22 June 1987. In 1993, following local government Teform. the Hospice changed Its registered name lo St. Luke's Hospice (Harrow & Brent) Ltd. to reflect the Change of name of part of its catchment areafrom the London Borough of Wembley to the London Borough of Brent. ST. LUKE'5 HOSPICE IHARROW & BRENT) LTD. TRUSTEES, REPORT Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 St. Luke'5 Hospice IHarrow & 8rentl Ltd. has a wholly owned trading subsidiary. St. Luke's Hospice IHaTrow & Brentl Charity Shops Ltd (company number 024545521 through which it operates a network of charity shops and a lottery. The trading subsidiary exist5 to maximlse income for the Hospice and all profits are donated to St Luke'5 Hospice using Gift Aid regulations. Oblects, Oblectives and Principal Activities The rellef of sickness and the preservatlon of health of those 5ufferlng from any life lirniting illness, primarily but not exclusively, with1n the areas of the London Boroughs of Harrow and Brent by.. maintaining a Hospice providing palliative and end of life care for thern in a range of settlngs; promotlllg and provlding service5, support and care for them, their families, friend5, and carers to help reli&ve physical, emotional, mental, or spiritual distress. promotlng and providing education about all aspects of palliative and Ènd of Ilfe care., carrying out research into the development and improvement of care services, in particular all aspett5 of palllat1ve and end of life care,. and promoting and providing other services and support in such ways a5 the Trustees shall from time to time think fit through the provision of health and social care services of all types. Structure, Governance and Management St. Luke's Hospice 15 governed by a Board of Trustees which meets quarterly. The Board is r￿ponSIble for setting the long- term strategy and approving annual plans and the budget. The Hospice delegates spEcific responsibilities to two 5ubcommlttees that also meet quarterly and report to the Board. The Board delegates day-to-day rnanagement of the charity to the Chief Executive Officer and the Executive Team. Trustees During the year of th15 report, and In the subsequent period, three Trustees resigned from the Board Bnd the term of Offi￿ of three other trustees carne to an end. InJanuary2023 the Board appointed a specialistrecruitmentagencylDanielWiselto helpsupportthe recruitmentolthechairof Trustees. guided by a NorninHtions Commlltee compri9ngfourtru5tee5 includingthethenVice(hairandthe Chairof the Finan￿ & Perfornèn￿ Committee. Thesame agencywas appointed bythe Board to support therecruitmentofnew Trustee5 injune 2023. The search lor a new Chair of Trustees resulted in the appointment of Meg Lu5trnan 35 3 Trustee and Chair on 9 March 2023. The recruitment for additlonal new trustee5 Te5ulted in the appointment of 5 new Trustees in August 2023. Trustees, includlng the Chair of Trustee5, are appolnted bythe Board following an open recruitment proces5 includlng advertisin& application and interview. The Board reviews the skills it needs in decidine selection criteria to maintain breadth of expertise. Onceappolnted aTrusteewill serve foran initial term of 3years. St Luke's H05Plte operates a thorough induction programme for all new Trustees. includlr)g engagement wlth our services, and meeting5 With th2 Chief Executive Officer and members of the Executive Team. Trustees are provided wlth a comprehensive pack of inftsrmatlon for reference including the Charity Govern3nce Code. All Trustees are required to complete e-learning modules via the Hospice's online tiainlng portal and are also offered relevant training courses. Annua1 appralsalof allTrustees ￿CondUCted by theChair￿ Vic&thair. NoTrusteEsare remuneratd fortheirsEnri Goveman During 2022. the Board of TTU5tees undertook a review of the Memorandum and Articles of A5sociatlon, and instructed solicitor5, VWV LLP, to produce new Articles. These were adopted in June 2023 following Charity Comm155ion consent. Towards the end of 2022. the Board of Trustees ctsmmissloned an independent Governance Review to consider our governance structure and to benchmark our governance ègalnst the Hospice and wider charlty sector. The findings of thi5 review will be implernented during 2023, including a new committee structure. ST. LUKE'S HOSPICE IHARROW & BRENTI LTD. TRUSTEES. REPORT Icontinuedl FOR THEYEAR ENDED31 DECEMBER 2022 The full Board meets quarterly, Sncluding an annual strategy day. The Board delegales consideration of key are35 of its work to two sukomrnittees.. Finance & Performance and Clinical Governance. Each committee meets quarterly in advance of the Board meeting5. In 2022, two new oversight groups- Health & Safety Oversight Group and the Care Quallty Commlssion Oversight Group- met with membership drawn from both trustees and staff. st. Luke's HospicelHarrow & Brent) Charity Shops Ltd held four meetings of their board of directors, whose mernbership include5 the Hospice's Chair of Trustees and Chief Executive Officer. Conflitt5 of interest are disc105ed at the start of each Board and committee meetin& and the Board operates under the principles set out in the Charity Governance Code, including the publlc benefit of our activities. plans and strategies. Public Beneflt The charity eXlSts to provide a palliative care end of life Servi￿ for the residents of Harrow and Brent. All our charitable activities focus on that care and furthei our charitable purpose5 for the public benefit. The Trustees take into account Charity Commission guidance in this regard. The Char1ty's main activitie5 and focus to provide this service. via an inpatient unlt, day care serVI￿S and communitv services delivered in patients, homes across both areas, are detailed within this report. BOARD CoMMI￿EEs Flnance & Perfom)ance The aim of the committee is to ensure that St Luke's is finantially sustainable, has well maintained facilities and a flt for purpose workforce able to deliver it5 business strategies and p13ns. It is also responsible lor ensuring effective systems are in place for the management, monitoring and mltlgation of organi5ational and operational risk together with strategic oversight olcommunication5. This committee 8150 ensures that the H05pice is able to diversify and increase charitable income to ensure long term 5UStainabillty. Clirtlcal Governance This cotnmittee ensure5 that st Luke's provides the highest quality of care and1ncreases our focus on safety, effective outcorne5 and experience of our patients in line with the Care Quality Commission 5 Key lines of enquiTy IC3rin& Effective, Responsive. Safe and Well Led). It ensure5 the implernentation of a qu31ity improvement and assurance framework, ensuring that quality govern3nce processes and structures are In place. EXECUTIVETEAM During 2022 the Executive Tearr conslsted of the Chief Executwe. Medical Director, Dlrector of Patient Services, Director of Finance & Facilitie5, and the Director of Fundraising. The team was strengthened during 2023 with the addition of B Director of People & Organisational Development, and Director of Quality & Governan￿. All these Dlrectors make up the Key management personnel within the defin￿tiOn of FRS102. The Chief Executlve Is accountable to the Trustees for the Implementation of the st¥ategic plan, and for the day to day rnanagement of the Charitable Group. In March 2022, an interim Chief Executive wa5 appointed. following the reslgnation of the previous Chlef Executive. The Interim was In post for 8 month5, during which time the CQC'Good' grading was regained. A permanent CEO was appointed in October 2022, (ratified by the Charity Commission in 20231. There were other changes to the Executlve team in 2022 in order to strengthen the leadership of the Charity. In 2022 there were, on average 4.6 members of the Executive Team Detai15 of Key Management Personnel Remuneration15 disclosed in Note 8 of the Financial Statements on page 30. Salaries are Set by the Trustees taking Into account the need to remunerate senior staff appropriately in order to recruit a high Calibr￿ Executive Team ensuring that the leadership of the charity has the skills 8nd expertise required to run the Hospice. Pay is Set annually, taking into account external market rates. In 2022 the Charlty was support8d by 474 unpaid voluntèers during the year12021.' 4841 in role5 in our network of charitv shop5, Hospice reception, in-palient unit, patient and family support services, fundraisinE, Hospice gardens, and administratlDn. ST. LUKE'S HOSPICE (HARROW & BRENT) LTD. TRUSTEES, REPORT IcontinuEdl FOR THE YEAR ENDED 31 DECEMBER 2022 RISK MANAGEMENT Principal Rlsks The table below sets out the prlncipal risk5 and uncertaintie5 faelng St Luke's H05pice during the period of this report, and the controls in place for managing these risks. Risk Management of rfsk Governan￿ & compllance Poor governance and compliance whlch results In legal or regulatory challenges Annua1 review of internal governance policies and procedures. Monltor new legal and regulatory guidance. Trustee and staff training. Ellective governance Structure for oversight and assurance Internal contro15 in place. Compllance with policies and procedures monitored and reported to Exetutlve Team. Training in place for all staff and volunteers. Communications protocols in place to mitigate reputatlonal risk. Workforce Recruitment and retention of staff and volunteers Benchmarking of staff 53laries and benefit5. Access to Employee Assistance ProEramme and Occupational Health. Establishing new ways to recruit reward and retain staff, including flexible working programmes. where appyoprlate. Establishment Genie framework in place for safe nursing staffing levels for each service. Temporary movement of clinical staff between services to meet safe level5. Volunteer recruitment and training in place. Income Reduction1n fundraising and statutory Sncome Framework in place to evidence impact and outcomes. Detailed budgeting and forecasting lo identify early trends. Financial monitoring controls in pla￿. Constant dialogue with commi55ioning bodies. Robust reserve5 policy. Estates Includlng technologv Business Contlnuity plan in place and communicated to stakeholders. Speciallst IT service contractor in pla￿. Major infection outbreak Outbreak protocols as per national guidance and our Infection Prevention and Control Policy. Expert advisoTS in place. Marsdatory training for all staff. Acces5 to PPE and monitoring of stctrcks held. sr. LUKE'S HOSPICE (HARROW & BRENTI LTD. TRUSTEES, REPORT Icontinuedl FOR THEYEAR ENDED 31 DECEMBER 2022 PENSION LIABILITY RISK Up until I" May 2015 the Hospi￿ offered a multi-employer pension scheme providing a defined benefit (career avÈragel penslon for members. This scheme was closed to further accrual in July 2016. The scheme is run by TPT and is in deficit. The scheme is a 'last man standing. arrangement which means that the Charity could be potentially liable for other participating employers, obligations if those employers aTe unable to meet their share of the overall scheme deficit following withdrawal from the scheme. A valuation in September 2019 resulted in the Charity agreelng to pay approx. £68k per annum in deficit contrlbutions. That contribution increases by 3% per annum and in 2022 the Charlty contributed £67k12021- £68kl to fund the deficit. This contribution will contlnue until 2027. The Scheme actuaries estimated in September 2019 that the deficit Tecovery payments from all employers would be sufficient to return the Scheme to a fully funded position by 30, September, 2027. A further actuarial valuatlon was carried out at 30 September 2022 which disc105ed that due to the contributions made by contributing emplc>yers following the 2019 review. and current higher Gilt yield5 used a5 the benchmarking tool, that the estimated scheme deficit 15 now reduced to £7.5m. The Pension Trustee 15 proposingthat thesame deficitfunding rationale, as disclosed above, continue5. Annual deficit contributions by participating ernployers now total £1.67m pa due to the annual 3% increases, and the likelihood is that the deficit wlll now be cleared 6 months earlier than originally anticipated. Now expected to be 31" March 2027. The Trustee5 are cognisant of the ongolng risk5 and rewew the optlon available to further manage that risk by a potenlial buyout. At 30, September, 2022 the buyout valuation was estimated at £1,019,676. A deslgnated Reserve of E300k has been created towards the potential future buyout. See below. RESERVES POLICY Thé Charlty's Income ari5e5 from.. 2022 30% 39% 29% 2021 26% 39% 34% Harrow & Brent Clinical Commissioning Groups ènd others Furidraising Shops Companv other Income loo% IiJ)% In November 2021 the Board reviewed it5 Reserves Policy and aim5 to maintain six months of total expenditure as Reserves. That amounts to £4,512k. as total expenditure for 2022 was £9,023k12021- £4,015k/E8,029kl. The Finance & Performance Committee reviews this policy in line with future ant1clpated financial demands of the Charity and conslders this policy adequate. The free reserve5 held at 31.12.22, as per the table below, arnounted to £7.285k, a surplus of £2,773k. The Trustee5 are of the opinion that thls surplus will reduce during 2023 and 2024 for the following reasons. The Trustees are conscious of the fact that due to delays Caused by the pandemic that numerous project5 were put on hold. A corllprehensive Health and Safety Review was undertaken in 2022, and remedial works have been carried out across the Estate, includlng shop premises in 2022 and 2023. In addition, the Hospice building Is in need of refurbishment, and in addition a new IT infrastructure needs to be put place urgently. Thes8 latter projects wi11 commence in 2023 complet5ng In 2024. For 2023, In Ilne with many other Hospice5 in the sector, the Trustees have therefore Set 8 deflclt budget in order that the aforementioned project5 may be actommodated. Consequently. the Trustees confirm th@v are of the opinion that although Reserves as at 31.12.22 were in eKce5s of the policy, that they wlll be used in 2023 to fin3nte these projects. The H05pice needs to ensure that it has a sufficient reserve of liquid fund5 available to meet unexpected shortfalls In its funding streams, tlmiry differences in re￿Ipt of those funds. or sudden increase5 In ctssts. ST. LUKE'S H05PICE IHARROW & BRENll LTD. TRUSTEES. REPORT Icontinuedl FOR THEYEAR ENDED31 DECEMBER2022 As at 31" Decernber 2022 the Charitable Group held the following General and Designated Reserves.. £OOO's Fund Designated Fixed Asset Fund- Hosplee D&5ignaled Fixed Asset Fund- Shop5 TOTAL De51gnated Fixed Asset Funds General Unrestricted Fund Risk Management Reserve 2022 2021 5.071 Tlmeline for Use The deslenated fixed a55Èt funds represent the net book value of the fixed assets. These funds are identified separately as they are illiquid funds and not available for Use. Available for general purposes and core costs General Purposes- ag3illSt perceived potÈnti31 risks to income- see below Held towards a potential fllture buy-out of the Defined Benefit5 Pension Scheme- see Note 20 of the Financi31 St3tements 41 5,106 5,516 1,498 105 5.176 1,641 Pension Deficit Reserve 300 300 TOTAL FREE RESERVES TOTAL UNREsTRl￿ED FUNDS 7,314 12.420 7,027 12,203 A5 per Balance Sheet The Risk Management Reserve wa5 Set up to enable the Hosplce to manage any unexperted shortfall in income. This is required to protect the needs of our patient5 and also to give a reassurance of securlty for the staff. Comprehensbve details about the Penslon Deficit Reserve can be found in Note 20 to the atcounts, on page$ 38 and 39. INVESTMENT POLICY Me55rs Rathbones ple were appointed as InV￿tment Managers to the Charity in 2016 to manage the Charity's investment portfolio. Rathbone5 were initially allocated approximately £1,600k to manage on behalf of the charity. An additional investrrent of £2.5m wa5 made in DecembeT 2021. Before placine investments on behalf of the Charity the Trustees have asked the fund managers to Screen for tobacco and health care companies. The fund managers report to the Charity on a quarterly basis. As at 31" December 2022 the investments were valued at £3,861k12021- £4,206KI. Details of changes in the investments held are detailed in Note 11 of the Finanaal Statement5 on pa8e 31. STRATEGIC REVIEW Our Vislon A world where people experience the best possible last phase of their life. Overvlew The Hospice Group recorded a surplus of £188k12021- £1,999kl Of which the Shops Company contributed a surplu5 of £713,96012021- £1,119kl Beft>rÈ the input from the shops company the Hospice made a loss of £528,69712021- Profit £880kl During the year the chaiity received the followlng grants and contributions directly related to alleviating the exceplional demands of the Covid pandemi ST, LUKE'S HOSPICE IHARROW & BRENf LTD. TRUSTEES, REPORT Icontlnuedl FOR THEYEAR ENDED 310ECEMBER 202Z 2022 2021 Covid Support from Hospice UK Government CJRS IFurloughl Grants £473k £619k £S35k 2022 wa5 a plvotal year forst Luke's, startlng the process of rebuilding in the aftermath of the pandemlc and our CQC inspection in 2021. In April 2022. under the leadership of an interim CEO, with exp@rience of CQC compliance, the Hospice regained its 'Good' grading by CQC following urgent action taken by The Trustees and the St Luke's team. The CQCS Head of Hospital Inspection stated,. "I wus pleased to see the lev815 of improvement at St Luke's Hospice, which is good newsforeveryone beino caredfvr there. The service listened to cotts concerns and ha5 worked hard to rECtify the issues ruised. I congratulute stuff and munogers at the Hospicefvroll thelrht7rd wort( to delivers(7frf ctsreforpeople." A permanent CEO was recruited in October 2022 who has established a new strategic focus for the Hosplce. supported by a new Executive Team, strengthening the leadership of the Hospice. During the last quarter of 2022, work commenced on a new two-year Strategic Plan which wa5 adopted in early 2023. The Strategic Plan is based around three key Ambitions-. Build Strong Foundations for the Future Embed Quality Value and Develop our People ACHIEVEMENTS AND PERFORMANCE Qur achievements and pèrformance for 2022 are set out against the three Ambition5 contalned in our new Strategic Plan. Ambition l. Build Strong Foundations for the Future What we did.. We regained the CQC'Good' Rating We earried out a comprehensive Governance Review. the results of which informs a new governance structure introduced in Spring 2023. We worked wlth the NoTth West London Integrated Care Board to shapp a new Model of Care for 5peclalist palllative care provision acr055 the eight boroughs in North West London to be delivered in 2023124. We established a Health & Safety Overslght Group to oversee a programme of e55enti31 investment in health 3nd safety. We established a new Rlsk Register for the Hospice with rnore work continuing Into 2023 on a new Risk Management Framework. This work cOmmen￿d a pathway to achlevlng full health & safety compllance across our estates and retail network by mid-2023. Our fundraising income (including legacie51 totalled £3.02m Including a successful Spring appeal for new syringe driver5, and Winter appeal for new mattresses for our In-patient unit. In November 2022 we hosted an engagement event at the House of Lords for 160 key stakeholders and supporters to celebrate our 35th Hospice anniversary. Our retail network of 18 shops TalSed £713,960 in net contribution for the Hospice. We commenced a review of our Lottery with recommendations to be implemented in 2023. We started a review of our IT systems, to inform an IT infrastructure investment programme In 2023124 to modernise oui Systems, and expand our use ol digital technologies. ST, LUKE'S HOSPICE IHARROW & BRENT) LTD. TRU5TEES' REPORT Icontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Ambltlon 2- Embed Quality What we did.. We saw a 5% Increase in the number of patients supported by St Luke'5 to 2089 Ifrorn 1996 In 20211. We saw 3 4% increase in the number of patients supported by our communlty specialist palliative cale team to 592 (from 567 in 20211. We saw 3 55% incTea5e In vlsits by our community specialist palliative care team to 1676 (from 1080 In 20211. We successfully piloted, and adopted. a 7 day a week service for admissions to our In-patient Unlt and restructured our medlcal team to provide support and medical care across our community seryices. We introduced innovative cr05S-team working, utilising existing staff skills to address the challenges in recrultment of qualified and experienced staff across the H05plce sector. We expanded our 24 houT pa111ative care helpline- PALL24-to include patients and their families in Brent as well as Harrow. We developed our clinical education programme by inltiatlng a commvnlty of practice and buildin8 links with hieher education providers. We dellvered a training programme to over 80 care home and primary eare staff Brent and Harrow. We provlded palliative care taster days for local paramedics and other healthcare professionals. We planned the relaunch of our wellbeing services including our bereavement support service. We appointed a new Head of Patient and Family Support and Therapies and a Bereavement Co-ordinator in January 2023 to lead this work. We launched our partnership with Compasslon in Dying, provlding a personalised care planninE service for Harrow and Brent communitles. We fostered collaborativè working with our external stakeholders and need-to-reach groups including presentlng at.. Brent Last Ph35e of Life stakeholders meetlnÉ Marie Curie '20 lor All, Brent Ment31 Health and Wellbeing Executive Meeting A550ciation of Palllative Medicine Conference Ambltlon 3- Value at)d Develop our People What we dld.. We carried out an HR Audit that Identified areas of priority in our ambition to value and develop our people. We developed a new People Plan, as paTt of our Strategic Plan, to build on the f5Ddings of our HR Audit and shape our HR and Organisational Development activities Into the future. We recruited a permanent Chlef Executive. We recruited a new Executlve Team, improving leadership acr05S the Hospice. We established our first Nurse Associate post in our In-Patient Unit. We put in place a new volunteer training matrix to provide tailored support to our volunteers. We worked wlth 474 volunteers providin8 essential help In our shops, gardens, In-Patient Unit, Wellbeing Service5 includinE bereavernent support, reception and administration In our team5. Our network of shops was 5UPPQrted by 390 volunteers. We met the standard for an Investors In People Silver Award, covering the peTiod March 2022 to March 2024. We carried out a revlew of our recruitment processe5 and implemented new systems to increase the diveTSIty of our staff. We developed a clinical cornpetency framework for our Brent Specialist Community Palllatlve Care Team that supported the professional development of our nursing staff. Members of our slalf were recognised nationally for their work.. Julie Dobbin, Education & Professional Development Mana8er, received an award in the Infection Prevention of the Year 2022 category at the Brltlsh Journal of Nursing Award5. ST. LUKE'S HOSPICE (HARROW & BRENT) LTD. 10 TRUSTEES, REPORT Iconlinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Komal Patèl (Home Care Managerl received a Queen's Nurse Outstanding Service award. INCOME STATUTORY-NHS COMMISSIONING St Luke's works in close collaboration with the NHS Trust and Commi55ioning bodies responsible for pallialive care within Harrow alld Brent. Within that role St Luke's has been working with the new Integrated Care Board for North West London and commissioner5 10 Shape a new model of care for specialist palliative care services. Our staff have provided expertise and input to the Model of Care working group, steering group and a Hosp1￿ CEO'S group. North West London ICB continues to cornmi5sion palliative care services from St Luke's Hospice, wlth 40% of our ttstal care costs funded by the NHS. FUNDRAISING DONATIONS 2022 was a challenging year for fundraising. The effects of the pandemic still being felt across the charity sector, the war in Ukraine, increa5e5 in interest rates drlving an increase in the cost of Ilvin& and national recruitment challenges all impacted our overall donations. During 2022 we received donations totalling £1,976k12021- £1,749kF full details of which can be found In Note 2 of the Financial Statements om page 25 Legacies remain our single largest source of fundrai5ed Income. and In 2022, 3 total of 40 people left a legacy gift in their Will to the Hospice which amounted to £l,058k12021- £1,197). The chaTlty secior benelitted from a catch up process at the Probate Office, caused by the pandemic. We also saw an incTease in the number of 'Much Loved, trlbute page5 established during 2022. The support from over 30 charitable tru5t5 and foundations throughout 2022 has been vital to the work we do. We received £338,215 during the year from our valued partner512021- £447kl. 2022 wa5 a successful year working with corporate partners with £197k12021- £75KI donated from 150 local businesses, including a corporate golf day that raised over £75,0(M). The strained economic situation translated through to individual gi￿n& and thi5 income stream was affected by a number ol cancelled direct debits from regular givers. But, we were pleased to run two successful appea15 for new pieces of equipment. Our events calendar was reir15tated in full durlng 2022, with the Family Colour Run in April 2022, an Annual Walk in Northumberland in May 2022, which iai5ed over £80k, 3nd our Midnight Walk in June 2022 which attracted over 700 participants. In addition the Firewalk and Santa Dash proved ever popular. De5Plte the London Marathon being moved to October in 2022 instead of the normal date of April, our marathon runner5 exceeded their targets and collectively ralsed over £16,000. SHOPS In 2022, St. Luke'5 Hospice Charity Shops successfully re-established themselves p05t pandemic. The year's performante through the 18 shops yielded a gros5 ievenue of £2.9 million. This included sales amounting to £514k, 501d a5 Agent for donor5 who chose to donate their funds directly to the Hospice. Those sales are reported in the Hospice accounts and not the Shops accounts. In additlon. those donations attracted additional Gift Aid payment5 from HMRC for the Charity of £128k. Shops sales, excluding donations, and including lottery. created a net contribution of £713k to support the Hospice's vital service5. These results signify the d@dication of our team. the generoslty of our supporters, and the resilience of our community even in challenging times. ST. LUKE'S HOSPICE IHARROW & BRENTI LTD. TRUSTEES, REPORT Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 The Hospice approved slgnificant Bnd essential Snve5tments In health and sBfety enhancements for the shops network throughout 2022. These improvements, Implemented acros5 all our shop5, led to the attainment of full compliance with safety re8ulatlons by early 2023. By rese11ing donated items and therefore repurposing them, the Hospice not only generates funds for its Vltal services but also contributes significantlyto reducing waste and preventing items from ending up In landfills. In 2023 the shops company continued it5 pathway to net carbon zero with the introduction of electric vehicles. In August 2023 a new donathon ￿ntre, complete with a Superstore, was opened in Harrow. The shops company will continue to identify other new retail opportunities across the boroughs of Harrow and 8rent. COMPLAINTS St Luke's Hospice receives, monitors and investigates cornp13ints across all its Services and activities (clinical and non- dinlcall including (>ur network of charity shops amd our fundraising actlvltles. In 2022, we Improved our processes for recording complaints. including a nèw Complaint5 Policy. Total 2022 Number of complaints Retail Fundralslng 40 18 li io Of thè 40 complaint5, 27 were fully or partially upheld. PLAN5 FOR THE FUTURE In addition to the usual opeTatlonal activities of the Hosplce, our plans for 2023 include a focus on embedding improvements in key areas of St Lukè's work including.. Continuous improvement in Quality systems. Strengthening Governance structUTes including Trustees at)d Executlvè Team. Impromng Infr3strycture Including IT and our estate. Funding and improved, sustainable income generation. The cost of Ilving crisi5 remalns a challenge and we anticipate that our fundraising expectations will contlnue to be impacted in 2023. A significant contribution to our annual income comes from our network of 18 charitv Shops. In 2023, we will expand our ietall network including a new warehouse donations centre incorporating a superstore. Our plan for 2023 and into 2024 set5 Out key activitle5 under our stratesic ambitions- Ambition l- Bulld Strong Foundatlon5 for the Future We will.. ensure compllance with good practice and regulation across all our governance and operations. build and strengthen the HOspi￿'S infrastructure Including our IT Systems, operations, buildings, and our network of shops. devèlop and implement strategies to secure funding and support Sustainable Income generat10n. modemise our people procedures and policies so that they add value to our Services. engagÈ with our communities, st¥en8then partnership5 and reach new stakeholders. Ambltlon 2- Embed Qualltv We will.. put patient5 and families at the heart of our care services. and support easier and equitable access to end of Ilfe care services through the redesiEn of our communlty service5. ST. LUKE'S HOSPICE (HARROW & BRENT) LTD. 12 TRUSTEES. REPORT Icontinuedl FOR THE YEAR ENDED31 DECEMBER 2022 develop patient and famlly support services that are responsive to need and delivered in a welcomlng and comfortable environment. ensure compliance and excellence in all our work through the introduction of a quality frarnework and new @overnance processes. Ambltlon 3-Value and Develop our People We will: ensure that we attract and retain a diverse range of people to St Luke's. create an inclusive environment and engage positively wlth all our people. develop our people, equipping them with the skills and knowledge to perform at the best of their tapabilitie5. ensure we recognise and reward our staff in accordance with our Values. ensure we have the right or8anisational structures to deliver our services. During 2023, we have already appointed to two key leadership roles- Director of People & Organisational Development, and Dlrector of Quality & Governance. 80th roles will contribute significantly to the delivery of the strategic plan. TANGIBLE FIXED ASSETS Movements Tangible Fixed Asset5 are shown in NotÈ 10 to the fin3ncial statements. GOING CONCERN The frustee5 have prepared the Financlal Statements on a gtsing con￿rn basis and consider that no disc105ures relating to the Charity's ability to continue a5 a golng concern need to be made in the financial statements. 5T. LUKE'S HOSPICE IHARROW & BRENT) LTD. 13 ST. LUKE'5 HOSPICE (HARROW & BRENll LTD. TRUSTEES, REPORT Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 TRUSTEES. RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS The Trustees are responslb1e for preparing the Trustees, Annual Report and the fTnancial statements ill accordance wlth applicable law and United Kingdom Generally Accepted Accounting Practice Iunited Klngdom Accounting Standardsl. Charlty Law in England and Wales requlres the Trustees to prepare financial statements for each flnancial year whlch give a true and fair view of the state of affair5 of the charity and the group and of the incomlng resources and application of resources, including the income and expenditure, of the charity and the group for that perlod. In preparing these financial Statements, the Trustees are required to.. select suitable accounting policie5 and then apply them consi5tentlv observe the methods and printlples In the Charities SORP make judgements and estimates that are reasonable and prudent st3te whether applicable UK Accountlng StandaTds have been followed subject to any materlal departures disclosed and explalned in the flnanclal statements prepare the financial statement5 an the going concern ba5Is unless It Is inappropriate to presume that the charity will contSnue in buslne The Trustees are rèsponsible foF keeping proper records that dlsc105e wlth reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the flnanelal staternents comply wlth the Companie5 Act 2006. They are a150 re5ponslble for Safeguarding the assets of the charitable company and Eroup and he￿￿ for taking reasonable step5 for the preventSon and detection of fraud and other irregularities. So far a5 each of the Trustees 55 aware at the time the report is approved.. there is no relevant audlt informatlon of which the charity and group's audltor5 are unaware the Trustees have taken all reasonable steps that they ought to have taken to make themselves aware of any relevant audit Information and to establish that the audltors are aware of that Informatlon The Trustees are responsible for maintenance and integrlty of the charlty and financial information Included on the charittls webslte. Legi51atlon In the United Kingdom governing the preparation and dis5emlnatlon of financial statements may vary from legislations thelrjurisdictions Auditor Haysmaclntyre LLP ha5 indlcated Its willin8ness to be reappointed as statutory audltor for the next flnancial year Approved by theTrustees and signed on thelr behalf bv lJh Marg3ret Lustman Date 2023 14 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST. LUKE'S HOSPICE (HARROW & BRENT) LTD. Oplnlon We have audlted the financla1 statements of St Luke's Hospice IHariow & Brent) Limited for the year ended 31 De￿mber 2022 which comprise the Consolidated Statement of Financial Activities, the Charity and Group Balance Sheets. the statement of Con501idated Cash Flows and notes to the financial statements, including a summary tsf significant accounting policie5. The financial reporting fr3mework that ha5 been applied in their preparation 15 applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standcird applicoble in the UK and Republic of Ireltsnd (United Kingdom Generally AC￿pted Accounting Practice). In our opinlon, the financlal statempnt5.' give a true and fa5r view of the state of the group's and of the parent charitable company's affairs as at 31 December 2022 and of the group'5 and parent charitable company's net movement in funds, includlng the income and expenditure, for the year then ended; have been properly prepared in accordance with United Klngdom Generally Accepted Accountlng Practice,. and have been prepared in accordance with the requirements ol the Companie5 Act 2006. Basis for oplnion We conducted our audit In accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those Standards are further described in the Auditorfs responsibilities for the audit of the financial 5t3tements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial staternent5 in the UK, including the FRCS Ethical Standard, and we have fullilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained Is suffiaent and appropriate to provide a b3sis for our opinion. Conclusions relating to golng concern In auditing the financial statements, we have concluded that the trustees. use of the golng concern basis of accounting In the preporatlon of the financial statemènts is appropriate. Based on the work we have perfomied. we have not identified any material untertainties relating to events or condltions 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. OUT responsibilities and the responsibilities of the trustees with respect to goin8 concern are described in the relevant sections of this report. other Informatlon The trustees are responsible for the other information. The other Information comprises the information included in the Tru5tees' Annual Report and ihe Message from the Chair of Trustees. Our opinion on the financial statements does not cover the other informailon and, except to the extent otherwise expl1c1t￿ stated in OLJr report. we do not express any forrn of assurance conclusion thereon. In connection with our audit of the flnancial staternents. our responsibility is to read the other information and, in doing so, consider whetherihe other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially mi5Stated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a m3terial misstatement In the financial statements or a material mi55tatement of the other informatlon. If, based on the work we have performed, we conclude that there is a material misstatement of thi5 Other information,. we are requirèd to report that fact. We have nothing to report in this regard. Opinlons on other matters prescrlbed by the Companle5 Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the informatlon given in the Tru5tees' Annual Report (which include5 the strategic report and the directors, report prepared for the purposes of company lawl for the flnancial year foT which the financial statements are prepared is con515tent with the financial statements,. and the strategic report and the directors, report ineluded within the Trustees, Annual Report have been prepared in accordance with applicable legal requirements. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST. LUKE'S HOSPICE (HARROW & BRENT) LTD. Icontinuedl Matters on which we are requlred to report by exception In the light of the knowledge and understéndinE of the group and the parent charitable company and it5 environment obtained in the course of the audit. we have not identified rnaterial misstatements in the Truslees, Annual Report (which incorporates the strategic report and the dlrector5' report). We have nothing to report in respect of the following matters In relation to whlch the Companles Act 2006 require us to report to you if, in OUT oplnion: adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audlt have not been received from branches not visited by us,. or the p3rent charitable company firtancial statements are not in agreement with the accountlnE records and returns., or certain disclosures of trustees, remuneration specified by law are noi made,. or we have not received all the information and explanatlOn5 we require for our audit. Responsibllltle5 of trustees for the linancial statements As explained more fully in the trustees, responsibilities statement set out on page 14, the trustees Iwho are also the directors of the charitable company for the purp05e5 of company lawl are responsible for the preparation of the flnancial statements and for being5at15fied thatthey give a true and fair view, and for such internal control as thetrustees determine is necessary to enable the preparation of finandal statements that are free from material misstatement, whether due to fraud or error. In preparing the financial slatements, the trustees are Tesponsible for assessing the group's and the parent charitable company's ability to continue as a going concern, dlsclosin& a5 applicable, matters related to going concern ènd using the going concern basis of 3ccounting unless the trustees either intend to liquidate the eroup or thè parent charitable company or to cease operation5, or have no realistic alternative but to do so. Auditor'5 respon5ibilitles for the audlt of the financlal statements Ourobjectivesareto obtain reasonable assurance about whetherthefinancial 5t3tementS a5 8 whole arefreefrom material mlsstatemÈnt, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance 15 a high level of assurance, but is not a guarantee that an audit conducted in accordan￿ with ISA5 IUKI will always detect a material misstatement when it exists. Misstaiements can arise Irom fraud or error and are considered rnaterial if. Individually or in the aggregate, they could reasonably be expected to Influence the economic declsions of users taken on the basbs of these financial statemenls. Irregularitie5, includingfraud, are instances of non-compliancewith laws and regulations. We design procedures in lin@ with our responsibilities, outlined above, to detect rnaterial misstatements in respect of irregularities, includingfraud. The extent to which our procedures are capable of detecting irregularities, including fraud 15 detailed below.. Based on our understanding of the group and the environment In which it operates, we Tdentified thatthe principal risk5 of non-compliance with laws and regulations related to compliance with regulatory requirements of the Care Quality Commission, Charity Commlssion, employment I3w and health and safety regulations. and we considered the extent to whlch non-compllance might have a materlal 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 ChBritles Acl 2011, payroll taxe5 and VAT. We ewaluated management'5 incentlves and opportunities for fraudulent manipulation of the financial statement5 (including the risk of override of controls), and determlned that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audlt procedure5 performed by the engagement team included.. Inspecting trustees, meeting minute5 Inspecting corTespondence wlth regulators and tax authorities,. Discu55ions with management including consideration of known or suspected instances of non-compliance wlth law5 and reEulation and fraud., Evaluatillg managernènt's controls designed to prevent and detect Irregularities,. 16 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ST. LUKE'S HOSPICE (HARROW & 8RENTI LTD. Icontlnuedl Identlfying and testing journals, in particular journal entrSes posted at the year-end or with unusual descrlption5,' and Challenging assumptions and ludgements made by management in their critical accounting estimates. Be¢ause of the inherent limitations of an audit, there is a risk thatwe will not detect all irregularities, illcluding those leading to a material m155tatement in the financial statement5 or non-compliance with regulation. This risk Increases the mole that compliance with a law or regulation 15 removed from the events and transaction5 reflected in th& financial statements, a5 we will be less likely to become aware of i115tances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment. forgery, collusion, omission OT misrepresentation. A further description of our responsibilitles for the audit of the financial 5tatement5 Is located on the Financial Reporting Council'5 website at.. www.frc.org.uk/auditor5responsibilities. This description forms part of our auditor'5 report. Use of our report This report is made solely to the charitable compat)v's members, as a body. In accordance with Chapter 3 01 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 OT assume responsibility to anyone other ihan the charitable company and the charitable company's members a5 a body, for our audit work, for thls report. or for the opiniofts we have formed. Lee Stokes (Senlor statutory auditor) ft>r and on behalf of Haysmacintyre LLP, Statutory Auditor 10 Queen Street Place, London, EC4R IAG. 30th October 2023 57 ST. LUKE'S HOSPICE (HARROW & BRENT) LTD. CONSOLIDATED STATEMENT OF FINANCIAL AcnvifiES Ilncluding an Income and Expendlture Acwuntl FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestrlcted Restricted funds Funds £'ooo £'ooo Endowment Funds £'ooo Total 2022 £'ooo Total 2021 vooo Notes Income from.. Donatlons and legacie5 Donations Covid grants Legacies 1,721 473 1.058 255 1,976 473 1,058 1,762 655 1,197 3,252 255 3,507 3.614 Churituble Attlvltles NHS commi55ionin8 Other income 2.504 437 2,504 437 2,485 192 2,941 2,941 2,678 other trudlng uctivities Fundr3isinE events Gr05s income from shops and lottery 224 2.754 224 2,754 228 3,321 2,978 2,978 3.549 IntomeArom Investments 105 105 Total Income 9.276 255 9,531 9,871 Expendlture on: RoisingAvnd5 Fundraising costs Fundraislng events Costs Shops and lottery expenditure Investment management cost5 605 245 2,726 21 20 625 245 2,726 23 552 239 2.493 12 3,597 20 3.619 3,296 Chorituble activitles In patient services Outpatient service5 Community services General clinlcal support 1,941 545 1,782 901 1,941 545 1,782 1,136 1,579 457 1,529 1,168 235 5,169 235 4,733 Total expendlture 8,766 255 9,023 8,029 Net Income before gains on Investments Net gains/llossesl on investments Pension revaluation gain 510 13181 25 S08 13471 2S 1,842 147 io li 1291 Net Income 217 1311 186 1,999 18 ST. LUKE'S HOSPICE IHARROW & BRENTI LITD. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Icontinuedl Ilncludlng an Income and Expendlture Account) FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestricted Re5trlcted fund5 Funds £'o(K) vooo Endowment Funds 000 Total 2022 £'ooo Totsl 2021 £'ooo Notes Net Income Transfer between funds 217 1311 186 1,999 Net movement in funds Recontillatlon of funds Total funds brought foTward 217 1311 186 1.999 12,203 76 245 12,524 10,525 Total funds carried forward 12,420 76 214 12,710 12,524 All amounts relate to continuing activities. There are no recogni5ed gains or losses for the current or preceding financial year other than as shown above, thereforè no Statement of Total Recognised Gains & Losses has been presented. Income and expenditure by fund for the year ended 31 December 2021 is given in note 19 to the accounts. The net result of the charit¥ls own aCtI￿tieS for 2022 was a loss of £528,69712021'. surplu5 £879,1371. The notes on pages 22 to 39 form part ofthese accounts. 19 ST. LUKE'S HOSPICE (HARROW & BRENT) LTD. CHARITY AND GROUP BALANCE SHEETS AT 31 DECEMBER Z022 Group Charity 2022 £'ooo 2021 E'ooo 2022 £'ooo 2021 £'ooo Notes FIXED ASSETS Tangible as5et5 Investments io li 5,106 3.861 5,176 4,206 5,065 3,861 5,081 4,206 8,967 9,382 8,926 9,287 CURRENT ASSETS Debtors Cash at bank 3nd in hand 12 1,375 3.293 1,737 2,274 2,316 2,262 1,261 1,599 4.668 4,011 4,578 2.860 CURRENT LIABILITIES Creditors.. amounts falling due within one year 13 16861 15371 15561 14101 NET CURRENT ASSET5 3.982 3,474 4,022 2.450 Long term liabilitles (Pension deficit) 20 12391 13321 12391 13321 NET ASSETS 14 12,710 12,524 12,709 11,405 Represented bv Unre5trlcted funds De51Enated fund5 General fund 6,904 5,516 7,117 5,086 6,863 5,556 7,117 3,967 12.420 12,203 12,419 11,084 Endowment funds Restricted fund5 214 76 245 76 214 76 245 76 15 12,710 12,524 12,709 11,405 The finanelal statements were approved and authorised for issue by the board ofTru5tees on K/d.&*Jw...2023 and signed on their behalf by.. M Lustman Chalr of Trustees The notes on pages 22 to 39 form parl of these accounts 20 ST. LUKE'S HOSPICE (HARROW & BRENf LTD. STATEMENT OF CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 £'ooo £'ooo £'ooo vooo Cash flows from operating actlvlties.. Net cash flow provided byllused Inl operaling activities (note Al 1.012 1,912 Cash flows from investing acllvities: Dividends, interest and rents from investments Purchase of property, plant and equlpment Disposal of investments Acqui51tion of investments Change in investment cash Penslon creditor revaluation ios 1281 827 13,2081 2,379 1681 30 11341 119 11401 12,4671 1691 Net cash used In Investing actlvities 12,6611 Change cash and eash equivalents in the reporting period 1,019 17491 Cash and cash equivalents at the beginning of the reportlng period 2,274 3.023 Cash and cash equlvalents at the end of the reportlng perlod 3,293 2,274 A l Reconciltation of net lexpendlturellincome to net cash flow from operating activ5tles 2022 £'ooo 2021 £'ooo Net incorne for the reportlng period las per the statement of 186 1,999 Adjustments for.. Depreciation charges losses/l8alns1 on investments Galn on pension revaluation Dividends, interest and rents from Investments DecTe3sellincreasel in debtors Increaselldecreasel in creditors 98 347 1251 11051 362 149 113 11471 lioi 1301 184 11971 Net tash flow provlded Inllused Inl operatln8 activitles 1,012 1,912 Analysis of cash and cash equlvalents Cash at bank and in hand 3.293 2,274 Total cash and cash equivalents 3,293 2,274 ANALYS15 OF DEBT other non-cash chan8e5 £'ooo £'ooo Balance at 31.12.22 Balance at 1.1.22 Cash flows £'ooo £'ooo Cash and bank 2,274 1,019 3,293 ST. LUKE'S HOSPICE IHARROW & BRENT) LTD. NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ACCOUNTING POLICIES The principal accounting policies adopted, judgements and key 50urtes of estimation uncertainty in the preparation of the financial Statements are as follows.. lil Bas¥5 of preparation The financial statements have been prepared In accordance with the Statement of Recommended Prartice for Charities ISORP 20151 (Second Edition, effective l January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The charity meets the definitlon of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost OT transaction value unless otherwise stated in the relevant accounting policy notelsl. 1111 Critical accountlngjudgements and key sources of estlmatlon uneeitalnty In the application of the accounting policie5, trustees are required to makejudgernent, estimates. and a55umptions about the earrying value of assets and liabilities that are not re3dlly apparent from other source5. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may dlffer from these estimates. The estlmates and underlying assumptions are reviewed on an ongoing bés15. Revislons to accounling estimate5 are recognised in the period In which the estimate is revis￿ if the revision affects only that period, OT Iri 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 pollties that have significant effect on Ihe financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the depreclation rate5 of tanBlble fixed asset5 and accruing for legacies which have not yet been received. In the vlew of the trustees. no a5sumption5 concernin8 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. liill Flnanclal Instruments Basic financial instrumerits are initially recognlsed at transaction value and subsequently measured at amortised with the exception of investments which are held at fair value. Finantlal assets held amortised cost comprise cash at bank and in hand, together with trade and other debtors. A 5peciflc provision is made for debts for which recoverabilitv Is in doubt. Cash at bank and in hand is defined as all cash held in Instant access bank accounts alld Used és working capital. Financial liabilities held at amortised cost comprise all creditors except soaal securlty nd other taxe5 and provisions. lsvl Preparatlon of accounts on a golng COn￿rn basis The trustees considerthere are no mateiial uncertainties about thecharity's abilityto continue a5 a goingconcern. The review ol our financial po%ltion, reserv8s levels and future plans glves trustees confidence the charity remains a going concern for the foreseeable future. Iv) Consolldatlon These accounts con501idate the re5uIt5 of the charity and its wholly owned subsidiary. St Luke's H05pice IHarrow & Brent) Charity Shops Limited, on a line-by-lifte basis. A separate Income and ExpenditureAccountand Statement of Financial Activities is not presented for the charity alone as permitted by the Companie5 Act 2W6 and Charitlès SORP. Ivll 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. Donation5 include related gift ald Income. 22 ST. LUKE'S HOSPICE IHARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS Icontinuedl FOR THEYEAR ENDED31 DECEMBER2022 The Shops company acts as agent to sell items donated with a glft aid declaration and to pa5S the resulting cash donations to the Hospice rather than record them as turnover wlthin the Shops Company. The Hospice also receive5 Ihe @ift aid claimed on these donations. Legacies are included when the Hospi￿ becorne5 entitled to th@ 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 valuBtion, an e5tirnate of their value is disclosed in the notes to the financlal statements. Investment income is recognised on a receivable basis. Income from charitable activities includes income from NHS contracts from the Harrow & Brent Cllnlcal Commissioning Groups. They have been deall with on a receivable basis as a contrlbution to running costs. There have been no signlflcant gifts in kind or donated goods and services duringthe year. The value of services provided by volunteers is not incorporated in these financial statements. Further detail of the substantial contribution by volunteers can be found in the Report of the Tru5teÈs. Iviil Expendlture Expenditure is recognised when a liability is incurred. It includes VAT where thls is not recoverable. Expenditure on ralsin8funds isthe costs incurred in attracting donation Income, organislng and managingfundraising events. and the c05ts1ncurred in tradlng activities which raise fvnds. 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 famllies. There are a150 a range of clinical and otherservices whlch apply to all these forms of Hospice care. These costs indude both the direct costs and support costs relating to these actiwties. Support costs include central functions and have been allocated to activitv C05t categories on a ba515 consistent with the use of resources, e.g., property costs by floor areas and othei ctssts on the base5 shown in Note 7. Governance costs include those incurred in the governance of the charity and it5 assets and are primarily associated with cornpliance with constitutional and statutory requirements. These have been allocated to activity costs on the same basi5 as support C05t5. Iv1151 Tangible flxed assets All asset5 acquired c05ting more than £2,500 are capitalised. Leasehold propeTtiès a5set5 3cqulred prior to 2016- over the term of the lease assets acqulred after 2016- shorter 015 year5 or the remaining term of the lease Fixture5 and equipment 20% Motor vehicle5 20% IT equlpment and 5VStems 20% The freehold property is not depreciated as the amount of depreciatlon is consldered to be irnrnaterial. Tangible fixed assets are held at cost and (except for the freehold property) depreoated on a Straight Ilne basis over their estimated useful lives as follows. Investments Investments are initially reco@nisecJ at their transaction cost and subsequently valued at falr value at the Balance Sheet date, unless fair walue cannot be measured ieliably in which tase it is measured at cost le55 impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Net 83inslllosse51 on investments, in the Statement of Financial Activitie5. 23 ST. LUKE'S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Ixl 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 Trusteès for particular purposes. Restricted funds are funds which are to be used in aecordance with Specific re5trirtlons imposed by the donors or which have been raised by the charlty for specific purposes. Endowment funds are restricted fund5 which are to be retained for the benefit of th@ charity as a capital fund. The Hosplce has a number of restricted Income and capital funds. Details of the funds are given in the note5 to ihè financial statements. Penslons The Group currently offers a qualifying defined contrlbution pension scheme to all staff. In addition the Group is a Direction Employer under the NHS Scheme. National Health SeTvlce Superannuatlon scheme This 15 a statutory superannuation scheme as defined In Section 6.1211) Income and Corporation taxes Act 1988, which has no invested funds. Contribution by employers Icurrently 14.3%) 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 dlspen5ation rules. The accounting charge represents the employer's contributions for the period. Deflned Contributlon Scheme IpensionsTrustl With effect frorn l May 2015 the group also operates a defined contribution pension scheme. The asset5 of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the group. The￿ is no liability under the scheme other than the payment of those contributions. Ixlll T3xatlon No tax is payable due to the charitable status of the parent company. Taxable profit5 Benerated by the trading 5ub5idlary are transferred to the parentcompany under gift aid. Ixllll Leases Operating lease rentals are charged to the Statement of Financial Activities over the period of the lease. Ixivl Legal slatU5 The charltable company is limlted by Guarantee and does not have any share capltal. Ixvl Employee beneflts Short term benefits ineluding holiday pay are recognlsed as an expense in the perTod in which the Se￿Ce is recelved. Termination benefits are accounted for on an accrual basis and in Sine with FRS 102. Ixvll Debtors Trade and other debtors are recogn1sed at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Ixviil Cash at bank and In hand Cash at bank and cash in hand Indudes cash and short term hlEhly liquid investments. l¥illl Creditors and provlslons Creditors and provisions are recognised where the chaiily has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amoullt due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recogni5ed at their settlement amount after allowlng for any trade discount5 due. 24 ST. LUKE'S HOSPICE IHARROW & BRENT) LTD. NOTES TO THE FINANCIALSTATEMENTS Icontlnuedl FOR THEYEAR ENDED31 DECEMBER 2022 DONATIONS- 2022 UnrestrScted funds £'ooo Restricted funds £'ooo Yotal 2022 £'ooo Total 2021 £'ooo Indivldual donations In memoriam donations Community groups Trust fund donations Coirporate don3tions MajoT Donors GSft aid Donations & glft aid frorn sale of goods in our shops 279 177 136 152 187 46 60 684 39 318 177 136 363 192 46 60 684 267 241 118 470 75 116 86 375 211 1,721 255 1,976 1.749 Fundraising events in 2022 were stlll impacted by Covid-19 but despite that, raised £223.76212021: £228,448). Totsl 2021 £'ooo DONATIONS- 2021 Unrestrlcted funds £'ooo Restrlcted funds £'ooo Individual donations In memoriarn donations Community group5 Trust fund donation5 Corporate donations Ivlajor Donor5 Gift aid DonatlOll5 & gift aid from sale of goods In our shops 267 242 118 85 75 116 86 267 242 118 470 75 116 86 385 375 375 1,364 385 1,749 COVID GRANTS Urbrestrlcted funds £'ooo Restricted funds rooo Total 2022 £'ooo Total 2021 £'ooo Hosplce UK grants other Grants 473 45 473 45 619 36 518 518 655 LEGACIES In addition to the sum of £1,058,256 from legacies within income12021'. £1,197,000), the Hospice has also recelved notifications for legacies where the value is CUTrently uncertaln until PToperty or equlty sales are completed, or PTobate granted: due to the difficulty with the valuation in light of the uncertainties no estimation ha5 been made for these legacie5. In accordance with the Hospice'5 accounting pollcy for legacies. these are not included in these accounts on the grounds of uncertainty of measurement. 25 ST. LUKE'S HOSPICE (HARROW & BRENTI LTD. NOTES TO THE FINANCIAL STATEMEMrs Icontlnuedl FOR THE YEAR ENDED31 DECEMBER2022 INCOME AND ExPEN0￿URE FROM SHOPS AND LOThERY The Charlty owns the entire share capital of St Luke's Hospi￿ (Harrow & Brent) Charity Shops Limlted, a companv registered In England and Wales, which operate5 charity shops In support of the Hospice funding. The subsldiary trBnsfers to the Hospice under gift ald an amount not les5 than its taxable profits. A5umm8ry ol the trading re5uIt5 of the subsidiary is shown below. Audited accounts have been prepared in respect of the trading period for the year ended 31 December 2022. Total 2022 £'ooo Total 2021 £'ooo Turnover Income from lottery Government grants 2,436 273 45 2,498 288 535 2,754 3,321 Cost of sale of purchased goods Administration expenses Lottery expenditure and prizes 1,942 93 2,095 104 Gross dirett expenditure of shops and lottefv 2,040 2,202 Net direct Income from shops and lottery Lease costs relating to shops owned by Charity Donations of goods under gift aid Lottery Prizes donated by Players 714 1701 514 1,119 1691 375 18 Contribution generated by Charity Shops Ltd 1,166 1,443 26 ST. LUKE'S HOSPICE IHARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl FOR THEYEAR ENDED 31 DECEMBER 2022 CHARITABLE ACTIVITIES-2022 Unrestricted funds £'O¢KJ Restricled funds £'ooo Total 2022 £'ooo Total 2021 £'ooo NHS comm15sioning income Servlce level agreement 2,504 2,504 2,485 2,504 2,504 2,485 Other funding 437 437 192 2,941 2,941 2.678 NHS commissioning income in 2022 includes funding for the Fast TT3ck Brokerage project. The project has been extended until March 2024. Services were also expanded to provide specialist palliative care services at weekends in the 8rent area- part of the Ageing We15 Prolect. CHARITABLE ACTIVITIES-2021 Unrestrlcted lunds £'ooo Restricted funds £'ooo Total 2020 £'ooo NHS commlssioning ineome Service level agreement Other funding 2,485 192 2,485 192 2,678 2,678 NET INCOMEIIEXPENDITUREI Total 2022 eooo Total 2021 £'ooo Net income is stated after charging.. Depreciation Auditor's remuneration Other fees payable to auditors Operating lease rental 98 18 112 13 513 517 27 In wo m com Q ID CD c¢) (0 O 4m offio tho C+ J LL f