Annual Report & Consolidated Financial Statements For the year ended 31 December 2024
Registered Charity Number: 298555 Company Number: 02141770 St. Luke’s Hospice (Harrow & Brent) Ltd
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## **Contents**
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|1. Introduction from Chair of trustees|3|
|2. About St Luke’s Hospice|4|
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a. Vision b. Values c. Strategy 2025-2028 d. Main activities
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|3. Service review|8|
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## **4. Strategic report**
a. Achievements and performance b. The year ahead c. Volunteers d. Relationships with stakeholders
## **5. Structure, governance and management**
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- a. Public benefit
b. Corporate structure c. Governance d. Appointment of trustees e. Trustee induction and training f. Principal risks g. Our people h. Remuneration policy for key management personnel i. Diversity, equality and inclusion
j. Environmental impact – energy and carbon reporting
**6. Financial performance**
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|6. Financial performance|18|
|a. Financial performance|
|b. Fundraising approach, controls and performance|
|c. Retail and lottery performance|
|d. Reserves policy|
|e. Investment policy|
|7. Statement of responsibilities of the trustees|23|
|8. Independent Auditors’ Report|24|
|9. Financial statements|29|
|10. Reference and administrative information|53|
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## 1. INTRODUCTION FROM THE CHAIR OF TRUSTEES
**In 2024 we continued to provide valuable and valued palliative and end-of-life services to the Harrow and Brent communities across our core and new services at a time of rising demand in a challenging environment**
With over 30 years’ experience, St Luke’s continues to strive to ensure that our services reflect the community’s needs and that our future can be assured in order to serve and support future generations. The positive experience of helping more patients and families with our wider portfolio of services is a true achievement, only possible due to the hard work of our team and the generosity of our volunteers and supporters.
Over the past year it has become even more evident that change is needed in the hospice sector generally and St Luke’s is no exception. As a Board, we have approved a new Strategy that focuses on aligning improved quality of care with reinvigorated resources to match the evolving needs of our patients and their families. To do this at a time of ongoing financial pressures requires optionality, intelligence and resilience, all of which we are beginning to weave into the fabric of our organisation.
Furthermore it has become necessary to address long-term investment into our landmark building, Kenton Grange. The need to modernise the space that is so important to our day- and in-patients and their families as well as our teams has become pressing and we recognise that a multi-year programme of development and investment will be required.
Given that transformation of this scale requires time and careful planning, there is a shared understanding that the charity’s financial outcomes will be challenging in the short term. Notwithstanding this strategic perspective, the Board is committed to be financially responsible and to restoring the organisation to a position whereby costs are fully covered by more sustainable income streams.
Despite the uncertainty that change and challenge present, our work is important and we are blessed with a strong community of supporters whose generosity is outstanding. I would also like to acknowledge the efforts of all teams, volunteers and trustees whose hard work is so appreciated.
There is much still to be done and we are confident that, with the continued backing of all our valuable supporters and our excellent team, we will find the St Luke’s future model for the next 30 years and more.
Meg Lustman
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## 2. ABOUT ST LUKE’S HOSPICE
## **a) Vision**
A world where people experience the best possible last phase of life.
## **b) Values**
Caring – Care of all those who deliver and need our services
Respect – Demonstrate respect and be open minded, inclusive and approachable Excellence – Create an environment of continually achieving our goals Inclusivity – Strive to reach all sections of our community in all areas of work Empowerment – Empower our community to live a better life
## **c) Strategy 2025-28**
During 2024, St Luke’s developed a new three year strategy. It reflects the diverse and increasing needs of our community for end-of-life support and care, and the challenging external funding landscape for charitable hospices.
The London boroughs of Harrow and Brent are two of the most ethnically and culturally diverse boroughs in London, with high rates of deprivation. Our populations in these boroughs are also ageing, and across the UK more people are dying or living with lifelimiting conditions.
Our strategy focuses on adapting our care services to improve provision and accessibility for our community. We will do this by working with the NHS, other charitable hospices, local government and communities in the London boroughs of Harrow and Brent.
At the heart of our strategy is our response to the financial challenges that the charitable hospice sector is facing where funding has not kept pace with rising costs, increased demand and the changing needs of our population. Our strategy reflects the urgent need to achieve sustainable funding for St Luke’s Hospice in both the short- and longer-term.
We have three Strategic Goals, with associated delivery priorities, and activities that form the hospice’s operational plan.
## **1. Quality of care**
We will be the best hospice we can possibly be, providing high quality and compassionate hospice care and support to all people and their families who come into St Luke’s or require our care at home.
## **Our delivery priorities:**
1. Deliver responsive, personalised, high-quality, and compassionate care and support to more people and their families.
2. Provide early support to individuals with life-limiting illnesses, helping them maintain their quality of life.
3. Improve the provision of high-quality compassionate care using our clinical quality framework.
4. Enhance our compliance with best practices and regulatory standards throughout all aspects of our operations.
## **To achieve this, we will:**
Implement a new model of service delivery.
- Investigate opportunities for enhancing the use of our hospice ward (inpatient unit) to match the needs of the population and improve the hospice’s sustainability.
Expand and promote our Pall 24 Helpline as a single point of access for patients and families to expert advice, care and support 24 hours a day.
Introduce a new Living Well programme to provide early support, reflecting the views of people with lived experience and other local stakeholders.
Expand our respite care and support service for patients and carers through increased engagement with service users, local partners and improved referrals.
- Expand our bereavement support service including:
- Introduce home visits to ensure equity of access to bereavement support.
- Introduce a model of bereavement support for children and young people, supported by activities and events for children and young people, working collaboratively with stakeholders/agencies in this field.
- Design an educational programme for clinical staff that is aligned with service needs and their competency framework.
- Deliver an enhanced programme of audit, quality improvement projects and research.
## **2. Serving our community**
- We will embed ourselves at the heart of our local community through increased engagement and by working in partnership to provide high quality and compassionate hospice care and support to our community.
## **Our delivery priorities:**
1. Strengthen St Luke’s role as a leading voice in palliative care in Harrow and Brent, by providing advice, guidance, and education, in partnership with health, social care, and community organisations.
2. Build our relationships with our local community to establish St Luke’s as the charity of choice for palliative care, support, and advice in Harrow and Brent.
3. Expand our engagement with diverse communities to better understand their needs and enhance our care and support services.
## **To achieve this, we will:**
Engage with local NHS primary care providers to increase knowledge and understanding of St Luke’s services and increase referrals, particularly in areas of the boroughs where referrals are currently low.
- Engage with local NHS Trusts/secondary care providers to ensure effective working relationships and understanding of our services, and to increase referrals.
Establish partnerships with local authority/voluntary sector organisations to improve knowledge of St Luke’s services and support for patients and families.
Develop and sustain meaningful collaboration with local faith leaders and community groups.
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Develop opportunities to provide expert training on palliative care to external partners including local health and social care organisations and voluntary sector.
Increase public awareness of St Luke’s care and services through enhanced communications including digital marketing.
## **3. Sustainability**
- We will deliver strong leadership, financial stability, and dependable income sources, supported by a skilled team of employees and volunteers ready to face future challenges.
## **Our delivery priorities:**
1. Create dependable and efficient revenue sources through our fundraising campaigns, retail and other commercial activities.
2. Work with our NHS partners to secure equitable and sustainable funding for our clinical services.
3. Create an organisation culture where people are valued, included, and developed to perform to the best of their abilities to deliver St Luke’s strategic goals.
4. Design our estates and infrastructure to be responsive to the current and future needs of St Luke’s and our community.
## **To achieve this, we will:**
Focus our fundraising on activities that maximise income generation and achieve year-on-year growth.
Implement the recommendations of our retail strategy review to maximise the profit contribution of our retail network.
Play a leading role in the development and implementation of North West London Integrated Care Board’s new Model of Care for community specialist palliative care in Harrow and Brent, making the case for sustainable funding for charitable hospices.
Develop policies to support Equity, Diversity, Inclusion in the workplace.
Introduce individual objectives and personal development planning for all staff through a new Appraisal Policy.
Review our arrangements for pay, reward and recognition.
Develop and promote wellbeing initiatives for staff and volunteers including Mental Health First-Aiders.
Determine future opportunities for our estates including Kenton Grange, exploring commercial ventures and partnership possibilities.
## **d) Main Activities**
The Charity’s main focus is to provide specialist palliative care to the people of Harrow and Brent facing life-limiting illnesses. Our care includes:
## Community based care
We provide specialised care for patients and families with life-limiting conditions within their own homes, including specialist palliative care nursing, crisis response care, and respite care, delivered by our Hospice at Home team and specialist palliative care nurses.
Two-thirds of our care is provided in the comfort of peoples’ homes, as we respect that this is where most people would like to be looked after. Our specialist community team of nurses helps people to manage more complex needs whilst our Hospice at Home team provides care that allows people to remain in their own homes by providing practical care and support. Our consultants offer outpatient appointments in the community and also at the hospice’s main building, Kenton Grange.
## Inpatient Unit
We provide specialist care to patients who can’t be cared for in the community, including symptom control, specialist respite care and end of life care delivered by a multidisciplinary team of nurses, doctors, healthcare assistants, physiotherapists and social workers.
Our 12-bed inpatient unit (IPU) at Kenton Grange cares for people in their final days, providing intensive care to help get symptoms under control or give respite care. Many of those who are cared for in our IPU often return home again.
## Patient and Family Support Services
We provide a programme of emotional and practical support to patients and their families living with life-limiting conditions, delivered by our specialist team of palliative care social workers, family support workers, and trained volunteers.
Our services are intended to keep people feeling well, independent and mobile for as long as possible. Our holistic approach to care is intended to support people’s wellbeing, including emotional support through services such as social work, spiritual care, exercise groups, advice on welfare benefits, advance care planning support, complementary therapy and physiotherapy services.
In addition to caring for our patients, we also provide bereavement support to family members and carers, through our team of trained, supervised volunteers.
## Pall 24
We provide 24-hour expert support to patients, families and professionals over the telephone, delivered by our experienced clinical staff. Our team provides advice, a rapid response in times of crisis and effectively co-ordinates care, from arranging prescriptions, to getting vital equipment delivered – anything people need to avoid going to hospital and to stay comfortably in their homes.
## **Key enablers**
To deliver our strategic goals, our strategy is underpinned and enabled by:
1. Sound financial management; robust finances and targets; accurate analysis; and accurate and timely management information.
2. Creative and innovative communications and marketing tailored to our target audiences and aimed at raising the profile of St Luke’s as we endeavour to be the best hospice we can possibly be.
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## 3. SERVICE REVIEW
Our service activity data reports for the financial period 1 April 2024 to 31 March 2025, in line with local statutory reporting requirements.
St Luke’s Hospice supported 2020 service users (2023: 2069).
Our specialist palliative care community team (Brent) carried out 2072 visits to patients in their homes, which represents an increase of 10% from the previous year (2023: 1884).
Our Inpatient unit saw 212 admissions in 2024, which is consistent with admissions in 2023. The Inpatient unit continues to accept admission 7 days a week which resulted in 39 weekend admissions in 2024.
A particular highlight for 2024 is the increased activity across all areas of patient and family support services to promote and support independence, acknowledging the power and benefits of bringing people together to socialise and learn from each other.
We implemented additional group activities to reach more people across our service, pre and post bereavement, including walk and talk, chair yoga, sound relaxation and retreat days.
We provided 2207 social work sessions compared to 2119 in 2023 (an increase of 4%) and this service continues to grow into 2025 reflecting the demand for psychosocial and emotional support.
We recruited an additional 35 volunteers within the bereavement and
complementary therapy services. All volunteers in these services receive ongoing training, supervision and reflective practice.
We supported a larger group of people affected by complex psychosocial issues, for example. unsettled immigration status, homelessness and mental ill-health.
Our team received commendation from North West London ICB for our work on Reducing Health Inequalities.
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Inpatient Services Bereavement
324
Serving our communtiy 212 10
Sessions
in 2024/2025 Admisions Weekend [39] Average number Days of inpatient
delivered by
admissions of days length stay [2043] unit care Volunteers and Staff
2024 Hospice at home Outpatients Brent Specialist
Patients/ & Brokerage Palliative Care team
Carers
513 532 2072
Brent Specialist
Patients supported
Complementary Care team
at home & brokerage
Therapy Community visits
sessions
Palliative Helpline (PALL 24)
722 5826
119 6760 Brent Specialist
Palliative 24 Palliative helpline Physiotherapy Care Palliative team
home visits Telephone calls sessions Telephone call
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## 4. STRATEGIC REPORT
## **a. Achievements and Performance**
- In the 2023 Annual Report and Statutory Accounts, the following delivery priorities were identified for 2024.
## **1. We will deliver a new strategy for 2025-2028**
During 2024, St Luke’s developed a new strategy focused on three Strategic Goals: Quality of Care, Serving our Community and Sustainability. The strategy started in January 2025 and is supported by a detailed operational plan and KPI’s, and quarterly reporting to the Board of trustees.
## **2. We will work with the North West London ICB on the development of a new Model of Care**
- During 2024, we have been a key partner in the North West London ICB’s work programme to develop a new Model of Care for community specialist palliative care services. This included St Luke’s Hospice involvement in advisory and working groups, consultations, and working in partnership with NHS and charity organisations to plan the implementation of the new Model of Care.
Alongside, we have reviewed our own clinical service model, involving service users and clinical teams to consider how we can better meet the needs of our populations of Harrow and Brent. Our new service model will be implemented during 2025.
## **3. We will improve the performance and contribution of our retail network**
St Luke’s Hospice Charity Shops Ltd (a trading company solely owned by St Luke’s Hospice) experienced a downturn in profit in 2023 which was forecast to continue into 2024 and 2025. This was a result of lower sales, poorer quality donations, a fall in footfall on the high street, and increased costs due to inflation across our network of 16 shops, all factors experienced across the charity retail sector. Our retail network contributes a third of our total income each year.
Urgent actions were implemented from the start of 2024 to improve performance.
- We commissioned the Charity Retail Consultancy to carry out a retail strategy review.
- We updated the governance of our trading company to enhance oversight and decision-making.
- We restructured the leadership of the retail company, introducing new charity retail expertise into the business.
We delivered a bespoke retail management development programme.
- We improved the alignment between retail and hospice central teams including enhanced marketing and communications support.
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## **4. We will implement new fundraising initiatives including a new lottery partnership and we will join national campaigns that will increase awareness of hospice funding as well as fundraising.**
St Luke’s Hospice has entered into a new lottery arrangement with Local Hospice Lottery partnership, moving from in-house delivery during 2025.
We took part in the Big Give fundraising campaign for the first time, raising £30k.
We participated in a Hospice UK National Legacy Campaign with 143 hospices across the UK to raise the importance and awareness of leaving Gifts in Wills.
We undertook an external review of our fundraising to plan for growth and efficiencies in the years ahead.
We participated in Hospice UK national campaigns to raise awareness of the funding challenges for hospices. In October, we hosted a visit from our local MP, Gareth Thomas, who wrote to the North West London ICB on our behalf about the need for a more equitable funding model for charitable hospices.
## **5. We will prioritise the delivery of our strategic ambitions around developing and valuing our People.**
Good progress has been made in strengthening our people processes and infrastructure.
We introduced a new learning and development programme across the hospice, including lunchtime sessions, online training opportunities and a hospice-wide management programme, People Management – the Essentials, which has been attended by all managers. A bespoke programme for retail managers was also implemented, and work started on a nurse competency framework.
The clinical education team launched a new approach to supporting reflective practice for clinicians.
The People Committee and Remuneration Committee were established, providing governance and strategic thought leadership.
The internal People Policy Review Group was established to review and update our people policies, with a target completion date of December 2025.
We retained Investors In People (IIP) accreditation and undertook an IIP staff survey.
A new focus on individual and personal development planning was introduced, to be expanded during 2025.
## **6. We will ensure that St Luke’s estate is fit for purpose and fit for the future to deliver the services our local community needs at end of life.**
In 2024, we commissioned a Feasibility Study of our hospice building, Kenton Grange, by Newmark (a property consultancy with expertise in health and charity sectors). Newmark provided options for the long-term sustainability of Kenton Grange, identifying a planned maintenance programme for the next 10 years. The recommendations and strategic implications will be considered by the Board of trustees during 2025 and a programme of capital works will follow.
## **b. The Year Ahead**
In 2025, we will deliver a programme of activities that meet our delivery priorities set out in the Strategy 2025-2028 (see section 2.c Strategy 2025-2028). Progress will be reported in the Annual Report and Statutory Accounts for 2025.
In addition, the Board of trustees have approved three key transformation projects that are of highest priority with strategic implications for the future sustainability of the hospice.
1. St Luke’s Service Model – shaping the future of our care
- Determining how our services will support the needs of our local population and community.
2. Kenton Grange Redevelopment Project
- Determining how our hospice building will support our service model and meet the needs of our local community.
3. NHS Funding and ICB Model of Care for Community Specialist Palliative Care Services
Determining how we can achieve equitable and sustainable funding for our clinical services as a charity and co-commissioner of specialist palliative care services in Harrow and Brent.
## **c. Volunteers**
At St Luke’s, we are fortunate to have a dedicated community of volunteers who contribute their time and skills across most areas of our charity. From our awardwinning gardening team of volunteers to the committed volunteers supporting our retail shops, their efforts are instrumental in helping us fulfil our mission of providing high-quality palliative and end-of-life care for the communities of Harrow and Brent.
Throughout 2024, our hospice volunteer numbers increased from 497 in 2023 to 521 in 2024, reflecting the ongoing dedication and commitment of our volunteers. In December, we were able to celebrate and recognise 41 volunteers who have worked for us for more than five years, with a handful of volunteers celebrating their 20 years of service.
Volunteers are crucial in the delivery of our services for patients and families. Our trained volunteers assist bereaved families in person or by phone through our bereavement programme and in 2024, we were delighted that the team won the prestigious Harrow Heroes Team of the Year award.
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We continued to successfully recruit volunteers for key areas, including bereavement support, complementary therapy, reception services, retail, gardening, and office support, further enhancing the compassionate care we provide.
We are truly grateful for the unwavering generosity of our volunteers, whose contributions make a meaningful difference to the lives of our patients and their families.
## **d. Relationship with Stakeholders**
St Luke’s Hospice places great value on engagement with our stakeholders, building positive relationships across all areas of our work. In 2024, a Priority for Improvement was the development of a Patient Engagement Strategy, and we have introduced new and engaging ways to seek and receive feedback from our service users and their families.
We strive to build strong relationships with our local community, working with a range of faith groups, schools, businesses and local organisations to raise community awareness of our work and the services we provide. We were delighted to join together with the Trustees of the Shree Swaminarayan Mandir Kingsbury to be part of their Temple’s ten-year celebrations and to host their spiritual leader during the summer of 2024. We were also very grateful to our Patron, The Lord Popat, for hosting a magnificent reception on our behalf at the House of Lords for over one hundred of our community and key stakeholders.
We continue to work closely with our NHS and local authority partners, including the local ICB, London North West University Hospitals NHS Foundation Trust and Brent Council Social Services. We are grateful for the interest and engagement from local Trusts and Foundations who fund our work, and voluntary sector partners. Our relationships with our charity hospice partners in the area remain strong, providing opportunities to share knowledge and experience, expertise and resources whenever possible, and working in partnership.
We engage with our staff across the hospice and our retail network through staff surveys, ‘Staff Conversation’ events with the CEO, and regular communications to keep staff informed and engaged. Many of our staff volunteer to help at fundraising events and we are very grateful for their engagement and support.
## 5. STRUCTURE, GOVERNANCE AND MANAGEMENT
Reference and administrative information set out at the end of the report form part of the formal report.
The purpose of the charity, as set out in its Articles of Association are “The relief of sickness and the preservation of health of those suffering from any life limiting illness, primarily but not exclusively, within the areas of the London Boroughs of Harrow and Brent by:
1. maintaining a Hospice providing palliative and end of life care for them in a range of settings;
2. promoting and providing services, support and care for them, their families, friends, and carers to help relieve physical, emotional, mental, or spiritual distress;
3. promoting and providing education about all aspects of palliative and end of life care;
4. carrying out research into the development and improvement of care services, in particular all aspects of palliative and end of life care; and
5. promoting and providing other services and support in such ways as the trustees shall from time to time think fit through the provision of health and social care services of all types.”
## **a. Public Benefit**
The charity exists to provide a palliative care end of life service for the residents of Harrow and Brent. In reviewing the objectives and activities for the year, the trustees have satisfied themselves that all our charitable activities focus on that care and further our charitable purposes for the public benefit. The trustees take into account Charity Commission guidance in this regard. The charity is a local organisation providing professional and compassionate services to the community in Harrow and Brent. It receives the majority of its funding from local individuals and organisations (including local NHS commissioning), therefore beneficiaries are mainly (although not exclusively) from the London boroughs of Harrow and Brent.
## **b. Corporate Structure**
The Articles of Association govern the charity and set out its charitable objectives and powers. In 2023, updated Articles of Association were adopted with Charity Commission consent.
The organisation is a charitable company limited by guarantee, incorporated on 22 June 1987.
St. Luke’s Hospice (Harrow & Brent) Ltd. has a wholly owned trading subsidiary, St. Luke’s Hospice (Harrow & Brent) Charity Shops Ltd (company number 02454552) through which it operates a network of charity shops and a lottery. The trading subsidiary exists to maximise income for the hospice and all profits are donated to St Luke’s Hospice using Gift Aid regulations. In 2024, a governance review was carried out for the trading company and new Articles of Association and Deed of Covenant were approved and adopted by the Board of trustees. In addition, a review of the lottery was undertaken and plans approved to move to an external lottery provider which will be fully implemented in 2025.
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## **c. Governance**
St Luke’s Hospice is governed by a Board of trustees which meets at least 4 times a year. The Board of trustees is responsible for setting the strategic direction of the hospice. Additional Board business is carried out between formal meetings in line with procedures set out in the Articles of Association, including discussion, decisions and voting by email. In addition to attending Board meetings, every trustee sits on at least one Committee.
The hospice has five sub-committees:
- Finance & Performance Committee (F&P) – overseeing the financial performance of the hospice and the delivery of strategic objectives in line with resources, including income generation, marketing, IT, and estates management.
- Audit and Risk Committee (A&R) – overseeing risk management, governance, and compliance across the hospice.
- Clinical Governance Committee (CGC) – overseeing all areas of governance and compliance in relation to clinical services and patient safety.
- People Committee (PC) – overseeing all areas of people, culture and organisational development.
- Remuneration Committee (RemCo) – overseeing the remuneration of senior management.
The Board delegates day-to-day management of the charity to the Chief Executive Officer and the Executive Team.
All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in Note 9 to the Accounts.
## **d. Appointment of Trustees**
Trustees, including the Chair of trustees, are appointed by the Board following an open recruitment process including advertising, application and interview. The Board reviews the skills it needs in deciding selection criteria to maintain breadth of expertise. Once appointed a trustee will serve for an initial term of 3 years, with a maximum of 3 terms. In 2024, one trustee resigned from the Board.
## **e. Trustee Induction and Training**
St Luke’s Hospice operates a thorough induction programme for all new trustees, including engagement with our services, and meetings with the Chief Executive Officer and members of the Executive Team. Trustees are provided with a comprehensive pack of information for reference including the Charity Governance Code. All trustees are required to complete e-learning modules via the hospice’s online training portal and are also offered relevant training courses. Annual appraisal of all trustees is conducted by the Chair and Vice-Chair. In addition, the Chair has an annual appraisal which is led by the Vice-Chair.
## **f. Principal Risks**
St Luke’s Hospice has further embedded its approach to risk management during 2024. The Audit and Risk Committee met three times during the year including a meeting with the hospice’s auditors to review the audited accounts. A Board Assurance Framework and Corporate Risk Register has been embedded into practice and is supported and informed by an internal clinical governance framework.
Further development has taken place of the Vantage incident, risk and compliance management software during 2024. New modules have been implemented this year including the Care Quality Commission compliance module and the complaints and compliments module.
The Executive Team and the Audit and Risk Committee have agreed the organisation’s principal risks which are regularly reviewed. Organisational policies and procedures are in place in relation to the principal risks.
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Risk Management / Mitigations
Clinical Services Education and training provision
Competency programmes
Arrangements for clinical and consultant oncall
Financial Finance and Performance Committee
sustainability Regular monitoring of management accounts and financial
position
Approved budget for financial year
Appointed auditors
Financial recovery plan for 2025 and beyond
Transformation Strategic objectives
Board and Executive Team away days for strategic planning
Internal staff engagement and communications
Staff survey
Commissioning Regular meetings with commissioners
Contract in place
Provision of monthly activity and quality data
Governance and Clinical Governance Committee and Board level
compliance committees
Internal governance groups
Risk, incident and complaint management
Patient feedback measures and strategy
Employment law, Renumeration Committee
HR and payroll Specialist advisor support
compliance Contracts of employment
The environment Structural surveys
Planned maintenance programme
Strategic plan for building upgrade
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Risk Management / Mitigations
Infection prevention External expert advisors
and control Risk assessment
Audit and monitoring programmes
Training and education
Infrastructure External IT contractor
Cyber security
Safeguarding Safeguarding lead and trustee with responsibility for
safeguarding
Safeguarding training and compliance monitoring
Freedom to Speak Up Guardian
Health and safety Health and Safety Group and Audit and Risk Committee
Health and Safety competent advisors
Various risk assessment
Business Continuity Plan
Communication and Communications and marketing team
engagement Mailings, social media and engagement events
Workforce capability People Committee
Recruitment, probationary and appraisal processes
Competency programmes
Mandatory training and external training opportunities
Education team
Workforce People Committee
recruitment Diverse recruitment methods
Data governance, Information Governance Group
security, privacy and Data Protection Officer, Senior Information Risk Officer,
quality Caldicott Guardian
Compliance with the Data Security and Protection Toolkit
(DSPT)
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## **g. Our People**
There were, on average, 143 full-time and part-time (FT/PT) staff employed in 2024 in the hospice and the hospice’s Shops company (2023: FT/PT staff 152).
|**Staff FT/PT**|**Year 2024**|**Year 2023**|
|---|---|---|
|Shops Company|50|54|
|Hospice|93|98|
|Total|143|152|
## **h. Remuneration Policy for Key Management Personnel**
The Remuneration Committee consists of the Chair of trustees, Vice Chair of trustees, Chair of Finance & Performance Committee, and is chaired by a fourth trustee. It has delegated responsibility from the Board for pay and remuneration of the Chief Executive Officer and Executive Team. In 2024, an external agency was commissioned to carry out a benchmarking exercise for Executive Team salaries and benefits with reference to hospice, public, charity and private sectors.
## **i. Diversity, Equity and Inclusion**
In 2024, we refreshed our Dignity at Work policies and Flexible Work policies. In 2025, staff will be engaged in setting the EDI agenda as part of the development of a new Equity, Diversity and Inclusion strategy for the hospice.
## **j. Environmental Impact - Energy and Carbon Reporting**
We progressed with a number of initiatives in 2024 to improve our impact on the environment.
We commissioned a building survey of our Kenton Grange site to understand the general condition and remedial work required to ensure the building remains in a satisfactory operating condition.
We commissioned a Energy Performance Certificate Survey at the start of 2025 in order to understand the Kenton Grange site’s current energy efficiency. Recommendations made by the assessor for potentially improving the energy performance of the building will be reviewed and incorporated into the buildings planned preventative maintenance programme where practically and economically feasible.
We worked with our waste management provider to ensure that we are prepared for the changes in guidelines for recycling for workplaces and commercial waste collections from March 2025.
We continued our recycling progamme including plastics, papers, batteries, toner cartridges and the recycling of rag across our retail operation.
- We introduced electric vans for our retail operation.
- We paused other initiatives such as the replacement of windows whilst we investigate the structural repairs required at our Kenton Grange site.
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## 6. FINANCIAL PERFORMANCE
## **a. Financial Performance**
In 2024, the Hospice Group recorded a deficit of £118k (2023: surplus £169k). Compared to last year, this represents an increase of £758k in legacies, a £664k decrease in contract income (out of which £640k relates to Ageing well programme), a £38k rise in investment gains, a £214k increase in costs due to inflation, and a £204k reduction in contributions from our shops.
The Charity’s income arises from:
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2024 2023 Increase/
£000 £000 (decrease)
Contract income 3,032 3,696 (18%)
Fundraising 2,330 2,468 (6%)
Legacies 1,754 996 76%
Shops Company, including 2,324 2,411 (4%)
the lottery
Interest & dividend [ 137] [117] 17%
Total income excluding 9,577 9,688 (1%)
unrealised investment gains.
**----- End of picture text -----**
The Group’s total income decreased by 1% (£287k) compared to the previous year, prior to accounting for unrealised investment gains and losses. There has been a 76% (£758k) increase in legacy income and a 18% (£664k) reduction in contract income primarily due to the non-renewal of the Ageing Well funding programme (£640k). All other operational income streams saw reductions.
Total group costs increased by 2%, driven by inflation and investment in IT infrastructure including EMIS (£50k). Communication and marketing expenses have been reclassified from fundraising costs to central support costs during the year.
The net profit contribution from the Shops Company saw year on year decline in 2024 as a result of shop closures, a drop in sales, and higher costs related to new vehicle leases, property dilapidation, and the full-year impact of the new Waverley warehouse.
As a result of the operating deficit and delayed cash receipt from legacies, cash reserves declined from £1.7 million to £1.3 million and total reserves declined from £12.8m to £12.7m.
## **b. Fundraising Approach, Controls and Performance**
## **1. Performance**
St Luke’s Hospice is dedicated to engaging and collaborating with its local community, whilst also maintaining high standards of fundraising and lottery activity. In a particularly challenging income generating environment for the hospice sector, St Luke’s is immensely appreciative of the continued commitment of our local communities of Harrow and Brent to all our work in the past year.
A 29% income growth was achieved in 2024, resulting in a gross contribution from Fundraising of over £3.5m. This was made up of £1.3m from multiple fundraising income streams (Individual Giving, In-Memory, Corporate and Community, Major Donors, Trusts and Foundations and Gift Aid), as well as Legacies, Events and from the Lottery. The lottery contribution and performance are reported within the Shops company performance section below.
Gifts in Wills remain our largest income stream with £1,753k being received from over 40 legacies, and 2024 ended with a very healthy legacy pipeline, the highest in the last five years. We remain incredibly grateful for those people who choose to remember St Luke’s Hospice in their Wills.
The Big Give campaign to Support our Nurses, a new initiative for St Luke’s, raised just over £27k, with over 139 donations (23 of which were new supporters). In-Memory saw significant growth from MuchLoved tribute pages, with donations increasing from £39k in 2023, to over £84k in 2024. Events income was slightly down on the previous year, and in 2025 we will concentrate on fewer events, and re-brand our flagship event to boost income. The Annual Walk, in its 27th year, exceeded expectations, bringing in over £80k with 70 walkers taking to the Shropshire Hills for a four-day walking challenge.
A fundraising review, undertaken by Compton Fundraising Consultants, was conducted at the end of the year to analyse our activity, database, supporter journeys and performance. As a result, a blueprint and fundraising roadmap has been developed, focusing on growth, efficiencies and sustainability for 2025 and beyond.
In 2024, St Luke’s was incredibly grateful to receive tremendous support from local businesses, charitable Trusts and Foundations and grant-giving funds of all sizes. Our huge thanks to all those listed and those who prefer to remain anonymous:
Albert Hunt Trust; Ardwick Trust; Arja Samaj Middlesex Hindu Charity UK; Bell Container Trading; Bloomberg; Brent Health Matters; Caron Keating Foundation; Cecil Rosen Foundation; Charterhouse Accountants; City Bridge Foundation; D S Cohen Charitable Trust; The February Foundation; Hamilton Wallace Trust; Harapan Trust; Hodge Foundation; Hospital Saturday Fund; Jean and Derek King Charitable Trust; The Kingsbury Charity; Lenore Reynell Trust; Mahavir Trust; MAPS Medical Benevolent Charitable Trust; Middlesex Mark Benevolent Fund; M K Charitable Trust; National Lottery Community Fund; RUB White Charitable Trust; Screwfix Foundation; SPAR (UK); The Arts Society Harrow; The Wolfson Foundation; and Toureen Group.
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## **2. Controls**
St Luke’s Hospice has voluntarily registered with the Fundraising Regulator, is a member of Hospice UK, the Hospice Lottery Association and the Hospice Income Generation Network (HIGN). In 2024, the Lottery remained in-house (pending a move to Local Hospice Lottery in 2025) and is licensed with the Gambling Commission. St Luke’s also signed up to the national Hospice UK Legacy Campaign in 2024, joining together with 142 other hospices across the country to promote the importance of leaving gifts in will.
St Luke’s is committed to operating within the Fundraising Code of Practice, employing a team of paid colleagues to deliver our fundraising and communications activities. Many of our fundraisers are also members of the Chartered Institute of Fundraising. We have a dedicated supporter care team responsible for data maintenance and record-keeping to comply with Fundraising Regulator requirements. In the period of 1 January to 31 December, we received five fundraising complaints, all of which were minor, and were investigated and resolved to the supporter’s satisfaction.
From time to time, St Luke’s engages with professional third-party suppliers to help raise funds, particularly where we do not have the expertise in-house, including mailing houses and fundraising agencies, to undertake some direct mailings and telephone appeals. St Luke’s also contracts services to Legacy Link, a legacy administration company, to administer legacy donations. The Hospice is also signed up to the Fundraising Preference Service to enable individuals to opt out of fundraising communications from us, and we received one request through this service in the past year.
The Director of Communications and Fundraising is a member of the internal Information Governance Group and a member of the Fundraising team attends the hospice’s Health and Safety Group. The team also liaise closely with, and seek guidance from, the Data Protection Officer to ensure data processing is in line with GDPR compliant procedures. All fundraising activities are reported to the Finance and Performance Committee on a quarterly basis by the Director of Communications and Fundraising.
The fundraising team will continue to build on the strategies implemented this year to steward existing donors and acquire new supporters to generate and increase income for St Luke’s Hospice in the new financial year.
## **c. Retail and Lottery Performance**
St Luke’s Hospice Shops Company Ltd continued to generate profits in support of the Hospice’s vital work and services. Over the past two years, we experienced a decline in profitability which persisted into 2024. This was driven by a combination of factors affecting the wider charity retail sector, including lower sales, reduced quality and volume of donations, declining high street footfall, shop closures and rising costs due to inflation across our network. The costs also increased due to new vehicle leasing, cost of dilapidations and full year new warehouse operational cost. The net contribution from all retail activity (including e-commerce) for 2024 was £153,054, down from £357,525 in 2023. Although quality of the donated goods remained low, our shops continued to benefit from strong community support. During the year, one shop closed due to the expiry of its lease. By the end of 2024, the Shops Company operated 16 retail outlets.
To address these challenges and begin a retail turnaround, we implemented several key actions during 2024:
- Commissioned a Retail Strategy Review: The Charity Retail Consultancy was engaged to carry out a comprehensive review of our retail operations.
- Strengthened Governance: We updated the governance structure of the Shops Company to improve oversight and support better decision-making.
Restructured Leadership: A new leadership structure and skills were introduced, bringing in charity retail expertise to guide the business.
Developed Management Capabilities: A bespoke retail management development programme was delivered to upskill our team.
During 2024, we received 1 (2023: 6) complaints in relation to our retail network.
St Luke’s Hospice currently operates an in-house lottery, which is licensed by the Gambling Commission. St Luke’s is a member of the Hospice Lottery Association, and provides regular weekly data and regulatory returns to the Gambling Commission as requested. However, the cost of running the lottery, combined with declining player numbers and cancellations, has led to a decision to outsource this activity to the Local Hospice Lottery for 2025. Lottery income made a £249k contribution to the hospice in 2024 (a decline in income since 2023) with around 3,600 players participating in the weekly game. Player retention is the key focus at the present time for the lottery, and pro-active recruitment for players will follow once the lottery has been outsourced.
## **d. Reserves Policy**
The Board of Trustees Reserves Policy aims to maintain six months of total expenditure as reserves. Adequate reserves also ensures that there are sufficient liquid funds available to meet unexpected shortfalls in its funding streams, timing differences in receipt of those funds, or sudden increases in costs.
The Finance and Performance Committee of the Board of Trustees reviews the Reserves Policy in line with future anticipated financial demands of the Charity. In 2024, reserves of £4,948k (six months total expenditure of £9,897), compared to £4,842k in 2023 (six months total expenditure of £9,683k) will be considered adequate by the Board of Trustees to meet the policy.
Total free reserves excluding Fixed asset reserve and designated funds held at 31st December 2024, as per the table below, were £5,171k. This is just above the required £4,948k of six-month operational cost. Therefore, the Trustees confirm the compliance of the Charity’s Reserves Policy.
The Risk Management Reserve of £1,411k was established to help the Hospice address any operational risk that could arise in the future.
Comprehensive details about the Pension Deficit Reserve can be found in Note 20 to the Accounts.
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As at 31st December 2024, the Charitable Group held the following General and Designated Reserves:
**----- Start of picture text -----**
Fund £000’s Timeline for Use
2024 2023
Designated Fixed 5,233 5,294 The designated fixed asset funds
Asset Fund - represent the net book value of the
Hospice fixed assets. These funds are identified
separately as they are illiquid funds and
Designated Fixed 380 512 not available for use.
Asset Fund - Shops
TOTAL Designated 5,613 5,806
Fixed Asset Funds
FREE RESERVES 5,171 5,173 Available for general purposes and core
General costs
Unrestricted Fund
Risk Management 1,411 1,372 General Purposes – against perceived
Reserve potential risks to income – see below
Pension Deficit 300 300 Held towards a potential future buy-
Reserve
out of the Defined Benefits Pension
Scheme – see Note 20 of the Financial
Statements
TOTAL LIQUID 6,882 6,845 Total Reserves available to spend
RESERVES
TOTAL 12,495 12,651 As per Balance Sheet
UNRESTRICTED
FUNDS
**----- End of picture text -----**
## **e. Investment Policy**
Messrs Rathbones plc were appointed as Investment Managers to the Charity in 2016 to manage the investment portfolio with an initial allocation of approximately £1.6m. An additional investment of £2.5m was made in December 2021. Before placing 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 31st December 2024 the investments were valued at £4,182k (2023 - £4,011K).
## 7. STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).
Charity Law in England and Wales 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charity and the group for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently
- observe the methods and principles in the Charities SORP
- make judgements and estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards have been followed subject to any material departures disclosed and explained in the financial statements
- 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 records that disclose with reasonable accuracy at any time 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:
- there is no relevant audit information of which the charity and group’s auditors 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 auditors are aware of that information
The trustees are responsible for the 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 vary from legislations in their jurisdictions.
## **Auditor**
On 18 November 2024 the company’s auditor changed its name from Haysmacintyre LLP to HaysMac LLP. HaysMac LLP has indicated its willingness to be reappointed as statutory auditor for the next financial year.
The Trustees’ Report, which incorporates a Strategic Report, was approved by the trustees and signed on their behalf by
Changes in the investments held are detailed in Note 11 of the Accounts.
Margaret Lustman
Chair of Trustees
12 June 2025
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## 8. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ST. LUKE’S HOSPICE (HARROW & BRENT) LTD
We have audited the financial statements of St. Luke’s Hospice (Harrow & Brent) Ltd for the year ended 31 December 2024 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:
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 2024 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- 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 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 Chair. 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:
- 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
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:
- 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
the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- 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 19, 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.
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24
## **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.
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 HaysMac LLP, Statutory Auditor
10 Queen Street Place,
London,
EC4R 1AG
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audit procedures performed by the engagement team included:
- Inspecting trustees’ meeting minutes;
- Inspecting correspondence with regulators and tax authorities;
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted at the year-end or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances 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 or misrepresentation.
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## 9. FINANCIAL STATEMENTS
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including an Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2024
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total Total
funds funds Funds 2024 2023
Notes £’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**Income from:**|||||||
|---|---|---|---|---|---|---|
|**_Donations and legacies_**|||||||
|•Donations|2|1,712|382|-|2,094|2,217|
|•Legacies|3|1,754|-|-|1,754|996|
|||--------------------|--------------------|--------------------|--------------------|--------------------|
|||3,466|382|-|3,848|3,213|
|**_Charitable Activities_**||--------------------|--------------------|--------------------|--------------------|--------------------|
|• NHS commissioning||3,007|-|-|3,007|3,596|
|•Other income||25|-|-|25|100|
|||--------------------|--------------------|--------------------|--------------------|--------------------|
||5|3,032|-|-|3,032|3,696|
|**_Other trading activities_**||--------------------|--------------------|--------------------|------------------|--------------------|
|•Fundraising events|2|236|-|-|236|251|
|•Gross income from shops|4|2,324|-|-|2,324|2,411|
|and lottery|||||||
|||--------------------|------------------|--------------------|--------------------|--------------------|
|||2,560|-|-|2,560|2,662|
|||--------------------|--------------------|-------------------------|------------------------|--------------------|
|**_Income from Investments_**||137|-|-|137|117|
|||--------------------|--------------------|----------------------|-----------------------|--------------------|
|**Total income**||**9,195**|**382**|**-**|**9,577**|**9,688**|
|||--------------------|--------------------|--------------------|-----------------|--------------------|
|**Expenditure on:**|||||||
|**_Raising funds_**|||||||
|•Fundraising costs||1,380|-|-|1,380|1,417|
|•Fundraising events costs||279|-|-|279|230|
|•Shops and lottery||2,567|-|-|2,567|2,390|
|expenditure|||||||
|•Investment management||20|-|-|20|19|
|costs|||||||
|||--------------------|--------------------|--------------------|--------------------|--------------------|
|||4,246|-|-|4,246|4,056|
|**_Charitable activities_**||--------------------|--------------------|--------------------|--------------------|--------------------|
|•Inpatient services||1,901|197|-|2098|1,867|
|•Outpatient services||628|43|-|671|593|
|•Community services||1,660|111|-|1,771|1,855|
|•General clinical support||1,106|5|-|1,111|1,312|
|||--------------------|--------------------|--------------------|---------------------|--------------------|
|||5,295|356|-|5,651|5,627|
|||--------------------|------------------|--------------------|---------------------|--------------------|
|**Total expenditure**|7|**9,541**|**356**|**-**|**9,897**|**9,683**|
|||--------------------|------------------|--------------------|---------------------|--------------------|
|**Net income/(Expenditure)**|||||||
|**before gains/(losses) on**|||||||
|**investments**||(346)|26|-|320|5|
|Net gains on investments|11|190|-|12|202|150|
|Pension revaluation gain||-|-|-|-|14|
|||--------------------|------------------|----------------|---------------------|---------------------|
|**Net income/(Expenditure)**|6|(156)|26|12|(118)|169|
|||========|========|========|========|========|
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## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (continued) (Including an Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2024
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total Total
funds funds Funds 2024 2023
Notes £’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**Net income**|6|(156)|26|12|(118)|169|
|---|---|---|---|---|---|---|
|Transfer between funds||-|-|-|-|-|
|||--------------------|--------------------|--------------------|--------------------|--------------------|
|**Net movement in funds**||(156)|26|12|(118)|169|
|**_Reconciliation of funds_**|||||||
|Total funds brought forward||12,651|-|228|12,879|12,710|
|||--------------------|--------------------|--------------------|--------------------|--------------------|
|Total funds carried forward||12,495|26|240|12,761|12,879|
|||========|========|========|========|========|
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 2023 is given in note 19 to the accounts.
The net result of the charity’s own activities for 2024 was a loss of £271,224 (2023: £187,745).
The notes on pages 33 to 52 form part of these accounts.
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. CHARITY AND GROUP BALANCE SHEETS AT 31 DECEMBER 2024
**----- Start of picture text -----**
Group Charity
2024 2023 2024 2023
Notes £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**FIXED ASSETS**||||||
|---|---|---|---|---|---|
|Tangible assets|10|5,613|5,806|5,233|5,294|
|Investments|11|4,182|4,011|4,182|4,011|
|||--------------------|--------------------|--------------------|--------------------|
|||9,795|9,817|9,415|9,305|
|||--------------------|--------------------|--------------------|--------------------|
|**CURRENT ASSETS**||||||
|Debtors|12|2,466|2,140|3,052|2,747|
|Cash at bank and in hand||1,331|1,717|983|1,491|
|||--------------------|--------------------|--------------------|--------------------|
|||3,797|3,857|4,035|4,238|
|**CURRENT LIABILITIES**||||||
|Creditors: amounts falling|13|(734)|(625)|(592)|(494)|
|due within one year||--------------------|--------------------|--------------------|--------------------|
|**NET CURRENT ASSETS**||3,063|3,232|3,443|3,744|
|||--------------------|--------------------|--------------------|--------------------|
|Long term liabilities
(Pension defcit)|20|(97)|(170)|(97)|(170)|
|||--------------------|--------------------|--------------------|--------------------|
|**NET ASSETS**|14|12,761|12,879|12,761|12,879|
|||--------------------|--------------------|--------------------|--------------------|
|**Represented by**||||||
|Unrestricted funds||||||
|Designated funds||7,324|7,478|7,324|7,478|
|General fund||5,171|5,173|5,171|5,173|
|||--------------------|--------------------|--------------------|--------------------|
|||12,495|12,651|12,495|12,651|
|Endowment funds||240|228|240|228|
|Restricted funds||26|-|26|-|
|||--------------------|--------------------|--------------------|--------------------|
||15|12,761|12,879|12,761|12,879|
|||=========|=========|=========|=========|
The financial statements were approved and authorised for issue by the Board of Trustees on 12 June 2025
and signed on their behalf by:
## M Lustman
## Chair of Trustees
The notes on pages 33-52 form part of these accounts.
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## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. STATEMENT OF CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
**----- Start of picture text -----**
2024 2023
£’000 £’000 £’000 £’000
**----- End of picture text -----**
|**Cash fows from operating activities:**
Net cash fow provided by/(used in) operating activities (note A)||(423)||(748)|
|---|---|---|---|---|
|**Cash fows from investing activities:**|||||
|Dividends, interest and rents from investments|136||117||
|Purchase of property, plant and equipment|(57)||(884)||
|Disposal of investments|872||374||
|Acquisition of investments|(946)||(479)||
|Change in investment cash|105||105||
|Pension creditor revaluation|(73)||(61)||
||--------------------||--------------------||
|**Net cash used in investing activities**||37||(828)|
|||--------------------||--------------------|
|Change in cash and cash equivalents in the reporting||(386)||(1,576)|
|period|||||
|Cash and cash equivalents at the beginning of the||1,717||3,293|
|reporting period|||||
|||--------------------||--------------------|
|**Cash and cash equivalents at the end of the reporting period**||1,331||1,717|
|||--------------------||--------------------|
|A ) Reconciliation of net (expenditure)/income to net cash|||||
|flow from operating activities|||||
|||**2024**||**2023**|
|||**£’000**||**£’000**|
|**_Net income for the reporting period_**|||||
|**_(as per the statement of fnancial activities)_**||(118)||**169**|
|Adjustments for:|||||
|Depreciation charges||250||183|
|Losses/(gains) on investments||(202)||(150)|
|Gain on pension revaluation||(-)||(14)|
|Dividends, interest and rents from investments||(136)||(117)|
|**Decrease/(increase) in debtors**||**(326)**||**(765)**|
|Increase/(decrease) in creditors||109||(61)|
|**Other**||-||7|
|||--------------------||--------------------|
|**Net cash fow provided in/(used in) operating activities**||(423)||(748)|
|||======||======|
|**Analysis of cash and cash equivalents**|||||
|Cash at bank and in hand||1,331||1,717|
|||--------------------||--------------------|
|**Total cash and cash equivalents**||1,331||1,717|
|**ANALYSIS OF NET DEBT**|**Balance**|**Cash**|
**Other**|**Balance**|
||**at 1.1.24**|**fows**|**non-cash**|**at**|
||||**changes**|**31.12.24**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|Cash and bank|1,717|(386)|-|1,331|
||======|======|======|======|
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. CHARITY AND GROUP BALANCE SHEETS AT 31 DEC 2024 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 costs 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.
33
32
## ST LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR YEAR ENDED 31 DECEMBER 2024
## **(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-byline 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 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.
## ST LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR YEAR ENDED 31 DECEMBER 2024
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
35
34
## ST LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR YEAR ENDED 31 DECEMBER 2024
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 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 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 payable under the scheme by the group. There is no liability under the scheme other than the payment of those contributions.
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
**----- Start of picture text -----**
2. DONATIONS – 2024 Unrestricted Restricted Total Total
funds funds 2024 2023
£’000 £’000 £’000 £’000
**----- End of picture text -----**
|Individual donations|215|24|239|251|
|---|---|---|---|---|
|In memoriam donations|202|3|205|185|
|Community groups|101|1|102|137|
|Trust fund donations|34|333|367|523|
|Corporate donations|115|8|123|101|
|Major Donors|131|13|144|65|
|Gift aid|146|-|146|71|
|Donations & gift aid from sale of goods|768|-|768|884|
|in our shops|||||
||--------------------|--------------------|--------------------|--------------------|
||1,712|382|2,094|2,217|
||========|========|========|========|
## **(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.
Fundraising events in 2024 raised £236,052 (2023: £251,257).
**----- Start of picture text -----**
DONATIONS – 2023 Unrestricted Restricted Total
funds funds 2024
£’000 £’000 £’000
**----- End of picture text -----**
|Individual donations|234|17|251|
|---|---|---|---|
|In memoriam donations|181|4|185|
|Community groups|126|11|137|
|Trust fund donations|135|388|523|
|Corporate donations|101|0|101|
|Major Donors|52|13|65|
|Gift aid|71|-|71|
|Donations & gift aid from sale of goods|884|-|884|
|in our shops||||
||--------------------|--------------------|--------------------|
||1,784|433|2,217|
||========|========|========|
## **(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.
## **3. LEGACIES**
£1,753,661 has been recognised from legacies for 2024 (2023: £995,627) using the Hospice’s accounting policy and principles of (i) Entitlement exists; (ii) receipt is probable; and (iii) the amount is measurable. Where there is any uncertainty regarding any of those principles, or the legacy could be contested, these have not been included in our accounts.
## **(xiii) 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.
37
36
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
## **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 2024.
**----- Start of picture text -----**
INCOME & EXPENDITURE FROM SHOPS & LOTTERY Total Total
2024 2023
£’000 £’000
**----- End of picture text -----**
|Turnover|2,060|2,158|
|---|---|---|
|Income from lottery|249|253|
|Government grants|15|-|
||--------------------|--------------------|
||2,324|2,411|
||--------------------|--------------------|
|Cost of sale of purchased goods|-|4|
|Administration expenses|2,081|1,960|
|Lottery expenditure and prizes|90|90|
||--------------------|--------------------|
|Gross direct expenditure of shops and lottery|2,171|2,054|
||--------------------|--------------------|
|Net direct income from shops and lottery|153|357|
|Lease costs relating to shops owned by Charity|(66)|(66)|
|Donations of goods under gift aid|659|707|
|Lottery Prizes donated by Players|10|14|
||--------------------|--------------------|
|Contribution generated by Charity Shops Ltd|756|1,012|
||========|========|
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
|**5. CHARITABLE ACTIVITIES - 2024**|**Unrestricted**
**funds**
**£’000**|
**Restricted**
**funds**
**£’000**|
**Total**
**2024**
**£’000**|
**Total**
**2023**
**£’000**|
|---|---|---|---|---|
|NHS commissioning income|3,007|-|3,007|3,596|
||--------------------|--------------------|--------------------|--------------------|
||3,007|-|3,007|3,596|
|Other funding|25|-|25|100|
||--------------------|--------------------|--------------------|--------------------|
||3,032|-|3,032|3,696|
||========|========|========|========|
NHS commissioning income in 2023 includes funding to deliver Fast Track Brokerage of Care. The current contract runs to September 2025.
|**CHARITABLE ACTIVITIES - 2023**|**Unrestricted**
**funds**
**£’000**|
**Restricted**
**funds**
**£’000**|
**Total**
**2023**
**£’000**|
|---|---|---|---|
|NHS commissioning income|3,596|-|3,596|
|Other funding|100|-|100|
||--------------------|--------------------|--------------------|
||3,696|-|3,696|
|**6. NET (EXPENDITURE)/INCOME**|========|========|**Total**
**2024**
**Total**
**2023**
**£’000**
**£’000**
========|
|Net income is stated after charging:||||
|Depreciation|||250
183|
|Auditor’s remuneration|||27
18|
|Other fees payable to auditors|||15
12|
|Operating lease rental|||616
525|
||||========
========|
39
38
|**2024**
**Total**
£’000|5,238|106|227|884|1,372|--------------------|7,827|--------------------||191|315|374|410|646|134|-|--------------------|2,070|--------------------|9,897|========|9,683|||||**2023**
**Total**
£’000|5,479|128|210|945|1,213|--------------------|7,975|--------------------||217|130|361|311|431|254|4|--------------------|1,708|--------------------|9,683|========|9,023|========||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**General**
**clinical**
**support**
£’000|339|-|-|-|394|--------------------|733|--------------------||14|72|80|74|102|36|-|--------------------|378|--------------------|1,111|========|1,313|||||**General**
**clinical**
**support**
£’000|402|-|210|-|386|--------------------|998|--------------------||16|30|77|56|67|69|-|--------------------|316|--------------------|1,313|========|1,136|========||
|**Community**
**services**
£’000|1,556|-|-||21|--------------------|1,577|--------------------||14|50|38|35|40|17|-|--------------------|194|--------------------|1,771|========|1,855|||||**Community**
**services**
£’000|1,656|-|-|-|40|--------------------|1,696|--------------------||16|21|36|26|27|33|-|--------------------|159|--------------------|1,855|========|1,782|========||
|**Out Patient**
**services**
£’000|315|-|-|-|80|--------------------|395|--------------------||14|48|24|14|168|8|-|--------------------|276|--------------------|671|========|593|||||**Out Patient**
**services**
£’000|330|-|-|-|65|--------------------|395|--------------------||16|19|24|11|112|15|-|--------------------|198|--------------------|593|========|545|========||
|**Inpatient**
**services**
£’000|1,102|106|227|-|104|--------------------|1,539|--------------------||14|72|45|102|272|54|-|--------------------|559|--------------------|2,098|========|1,867|||||**Inpatient**
**services**
£’000|1,157|128|-|-|132|--------------------|1,417|--------------------||16|30|43|78|181|102|-|--------------------|450|--------------------|1,867|========|1,941|========||
|**7. EXPENDITURE – 2024**
**Shops &**
**Investment**
**Basis of**
**Allocation**
**Fundraising**
**costs**
**Fundraising**
**event costs**
**Lottery**
**expenses**
**Management**
**costs**
£’000
£’000
£’000
£’000|Staff costs
Direct
443
65
1,418
-|Drugs and medical
Direct
-
-
-
-|Catering and housekeeping
Direct
-
-
-
-|Fundraising and community
Direct
777
107
-
-|Other direct costs
Direct
-
-
753
20|--------------------
--------------------
--------------------
--------------------|1,220
172
2,171
20|--------------------
--------------------
--------------------
--------------------|Support costs|Management
Staff time
29
29
77
-|Quality
Staff time
13
0
60
-|Finance
Staff time
38
38
111
-|HR
Headcount
25
12
148
-|Premises
Floor area
42
22
-
-|Communication
Headcount
13
6
-
-|Shops Lease
Amortisation
-
-
-
-|--------------------
--------------------
--------------------
--------------------|160
107
396
-|--------------------
--------------------
--------------------
--------------------|**Total expenditure**
**2024**
1,380
279
2,567
20|========
========
========
========|**Total expenditure**
**2023**
1,417
230
2,390
19|• The lease rentals relating to two shops are allocated wholly to Shops and Lottery Expenses.|ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.|NOTES TO THE FINANCIAL STATEMENTS (continued)|FOR THE YEAR ENDED 31 DECEMBER 2024|**7. EXPENDITURE – 2023**
**Shops &**
**Investment**
**Basis of**
**Allocation**
**Fundraising**
**costs**
**Fundraising**
**event costs**
**Lottery**
**expenses**
**Management**
**costs**
£’000
£’000
£’000
£’000|Staff costs
Direct
391
60
1,483
-|Drugs and medical
Direct
-
-
-
-|Catering and housekeeping
Direct
-
-
-
-|Fundraising and community
Direct
880
65
-
-|Other direct costs
Direct
-
-
571
19|--------------------
--------------------
--------------------
--------------------|1,271
125
2,054
19|--------------------
--------------------
--------------------
--------------------|**Support costs**|Management
Staff time
33
33
87
-|Quality
Staff time
5
0
25
-|Finance
Staff time
36
36
109
-|HR
Headcount
19
9
112
-|Premises
Floor area
29
15
0
-|Gen overheads
Headcount
24
11
0
-|Shops Lease
Amortisation
-
-
4
-|--------------------
--------------------
--------------------
--------------------|146
104
336
-|--------------------
--------------------
--------------------
--------------------|**Total expenditure**
**2023**
1,417
230
2,390
19|========
========
========
========|**Total expenditure**
**2022**
625
245
2,726
23|========
========
========
========|• The lease rentals relating to two shops are allocated wholly to Shops and Lottery Expenses.|
41
40
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.
## NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
**----- Start of picture text -----**
8. STAFF COSTS AND NUMBERS Total Total
2024 2023
£’000 £’000
**----- End of picture text -----**
|Salaries and wages|5,052|4,930|
|---|---|---|
|Social security costs|486|470|
|Pension costs|324|330|
||--------------------|--------------------|
|Total|5,862|5,730|
||========|========|
|Average number of employees (full time equivalents)|||
|Hospice|79|82|
|Shops|43|49|
||--------------------|--------------------|
||122|131|
||========|========|
There were on average 143 people employed (2023 – 152) full and part time. The employees were supported by 521 unpaid volunteers during the year (2023: 497).
Pension costs include an amount of £31,849 (202 – £32,191) paid in respect of death in service cover for employees of the company.
Ex Gratia payments made during the year were £13,108 (2023 – £14,169).
The total remuneration for Key Management Personnel included in staff costs above is £540,569 (2023: £546,711).
The number of staff with remuneration in excess of £60,000 were as follows:
**----- Start of picture text -----**
£ 2024 2023
**----- End of picture text -----**
|£60,000 - £70,000|1|3|
|---|---|---|
|£70,000 - £80,000|2|3|
|£80,000 - £90,000|3|-|
|£90,000 - £100,000|-|1|
|£100,000 - £110,000|1|-|
## **9. TRUSTEES**
None of the trustees received any remuneration or benefits in kind from the charitable company (2023: Nil). Trustees did not claim any expenses on behalf of the charity during the year (2023:Nil).
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
|**10. TANGIBLE FIXED ASSETS**
**GROUP**|**Freehold**
**properties**
**£’000**|**Leasehold**
**properties**
**£’000**|**Fixtures &**
**equipment**
**£’000**|**Motor**
**vehicles**
**£’000**|**Total**
**£’000**|
|---|---|---|---|---|---|
|**Group**||||||
|Cost||||||
|Opening balance|4,932|1,194|573|11|6,710|
|Additions|-|3|54|-|57|
|Disposals|-|(277)|(8)|(11)|(296)|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|Closing balance|4,932|920|619|-|6,471|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|**Depreciation**||||||
|Opening balance|-|682|211|11|904|
|Charge for the year|-|135|115|-|250|
|Disposals|-|(277)|(8)|(11)|(296)|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|Closing balance|-|540|318|-|858|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|**Net Book Value**||||||
|At 31 December 2024|4,932|380|301|-|5,613|
||========|========|========|========|========|
|At 31 December 2023|4,932|512|362|-|5,806|
||========|========|========|========|========|
|**10. TANGIBLE FIXED ASSETS**
**CHARITY**|**Freehold**
**properties**
**£’000**|**Leasehold**
**properties**
**£’000**|**Fixtures &**
**equipment**
**£’000**|**Motor**
**vehicles**
**£’000**|**Total**
**£’000**|
|**Charity**||||||
|**Cost**||||||
|Opening balance|4,932|33|563|-|5,528|
|Additions|-|-|54|-|54|
|Disposals|-|( 33 )|-|-|( 33 )|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|Closing balance|4,932|-|617|-|5,549|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|**Depreciation**||||||
|Opening balance|-|33|201|-|233|
|Charge for the year|-||115|-|115|
|Disposals|-|( 33 )|-|-|( 33 )|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|Closing balance|-|-|316|-|316|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|**Net Book Value**||||||
|At 31 December 2024|4,932|-|301|-|5,233|
||========|========|========|========|========|
|At 31 December 2023|4,932|-|362|-|5,294|
||========|========|========|========|========|
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.
43
42
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
**----- Start of picture text -----**
11. INVESTMENTS Total Total
2024 2023
Market value at 1 January 2024 4,011 3,861
Additions 946 479
Disposals (872) (374)
Realised and unrealised gains 202 150
Movement in investment cash (105) (105)
-------------------- --------------------
Market value at 31 December 2024 4,182 4,011
======== ========
12. DEBTORS: amounts falling due Group Charity
with one year 2024 2023 2024 2023
£’000 £’000 £’000 £’000
Trade debtors
Other debtors
Prepayments and accrued income 179 60 179 60
Amounts owed by subsidiary undertaking 141 134 40 77
2,146 1,946 1,931 1,731
- - 902 879
-------------------- -------------------- -------------------- --------------------
2,466 2,140 3,052 2,747
======== ======== ======== ========
13. CREDITORS: amounts falling due Group Charity
within one year 2024 2023 2024 2023
£’000 £’000 £’000 £’000
Trade creditors 209 170 156 155
Taxation and social security 170 175 139 142
Accruals and deferred income 355 280 297 197
-------------------- -------------------- -------------------- --------------------
734 625 592 494
======== ======== ======== ========
**----- End of picture text -----**
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
|**14. ANALYSIS OF NET ASSETS**
**SETS BETWEEN FUNDS -**
**GROUP – 2024**|**Unrestricted funds**
**General**
**Designated**
**£’000**
**£’000**|**Unrestricted funds**
**General**
**Designated**
**£’000**
**£’000**|**Endowment**
**Funds**
**£’000**|**Restricted**
**Funds**
**£’000**|**Total**
**2024**
**£’000**|
|---|---|---|---|---|---|
|Tangible fxed assets|-|5,613|**-**|**-**|5,613|
|Investments|2,531|1,411|240|-|4,182|
|Net current assets|2,737|300|-|26|3,063|
|Long term liabilities|(97)|-|-|-|(97)|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|**Net assets**|5,171|7,324|240|26|12,761|
||========|========|========|========|========|
|**ANALYSIS OF NET ASSETS**
**BETWEEN FUNDS -**
**GROUP – 2023**|**Unrestricted funds**
**General**
**Designated**
**£’000**
**£’000**||**Endowment**
**Funds**
**£’000**|**Restricted**
**Funds**
**£’000**|**Total**
**2024**
**£’000**|
|Tangible fxed assets|-|5,806|**-**|**-**|5,806|
|Investments|2,411|1,372|228|-|4,011|
|Net current assets|2,932|
300|-|-|3,232|
|Long term liabilities|(170)|-|-|-|(170)|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|**Net assets**|5,173|7,478|228|0|12,879|
||========|========|========|========|========|
|**ANALYSIS OF NET ASSETS**
**BETWEEN FUNDS -**
**CHARITY – 2024**|**Unrestricted funds**
**General**
**Designated**
**£’000**
**£’000**||**Endowment**
**Funds**
**£’000**|**Restricted**
**Funds**
**£’000**|**Total**
**2024**
**£’000**|
|Tangible fxed assets|-|5,233|**-**|**-**|5,233|
|Investments|2,531|1,411|240|-|4,182|
|Net current assets/|2,737|680|-|26|3,443|
|(liabilities)||||||
|Long term liabilities|(97)|-|-|-|(97)|
||--------------------|--------------------|--------------------|--------------------|--------------------|
|**Net assets**|5,171|7,324|240|26|12,761|
||========|========|========|========|========|
45
44
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
|**14. ANALYSIS OF NET**
**ASSETS BETWEEN FUNDS**
**- CHARITY – 2023**|**Unrestricted funds**
**General**
**Designated**
**£’000**
**£’000**|**Unrestricted funds**
**General**
**Designated**
**£’000**
**£’000**|**Unrestricted funds**
**General**
**Designated**
**£’000**
**£’000**|**Unrestricted funds**
**General**
**Designated**
**£’000**
**£’000**|**Endowment**
**Restricted**
**Funds**
**Funds**
**£’000**
**£’000**|**Endowment**
**Restricted**
**Funds**
**Funds**
**£’000**
**£’000**|**Endowment**
**Restricted**
**Funds**
**Funds**
**£’000**
**£’000**|**Total**
**2024**
**£’000**|
|---|---|---|---|---|---|---|---|---|
|Tangible fxed assets||-||5,294||**-**|**-**|5,294|
|Investments|2,411|||1,372||228|-|4,011|
|Net current assets/|2,932|||812||-|-|3,744|
|(liabilities)|||||||||
|Long term liabilities|(170)|||-||-|-|(170)|
||--------------------||--------------------||--------------------||--------------------|--------------------|
|**Net assets**|5,173|||7,478||228|-|12,879|
||========||========||========||========|========|
|**15. FUNDS – 2024**|**Opening**
**Balance**
**£’000**||**Income **
**£’000**|**Expenditure**
**£’000**||**Investment**
**Gains/**
**Losses**
**£’000**|
**Transfer/**
**Pension**
**Surplus**
**£’000**|**Closing**
**Balance**
**£’000**|
|**Restricted funds**|||||||||
|Inpatient care funds|-||196||(196)|-|-|-|
|Outpatient care funds|-||63||(63)|-|-|-|
|Community care funds|-||112||(92)|-|-|20|
|General Clinical funds|-||5||(5)|-|-|-|
|Capital funds|-||6||-|-|-|6|
|Fundraising Programme|-||-||-|-|-|-|
||--------------------||--------------------|--------------------||--------------------|--------------------|--------------------|
|**Total restricted funds**|-||382||(356)|-|-|26|
||--------------------||--------------------|--------------------||--------------------|--------------------|--------------------|
|**Endowment funds**|||||||||
|Alice Wisbey Capital Fund|25||-||-|1|-|26|
|D D McPhail|203||-||-|11|-|214|
||--------------------||--------------------|--------------------||--------------------|--------------------|--------------------|
|**Total endowment funds**|228||-||-|12|-|240|
||--------------------||--------------------|--------------------||--------------------|--------------------|--------------------|
|**Unrestricted funds**|||||||||
|Designated fxed asset fund|5,294||-||-|-|(61)|5,233|
|Designated shops assets fund|512||-||-|-|(132)|380|
|Designated risk|||||||||
|management fund|1,372||-||-|39|-|1,411|
|Pension liability reserve|300||-||-|-|-|300|
||--------------------||--------------------|--------------------||--------------------|--------------------|--------------------|
|**Total designated funds**|7,478||-||-|39|(193)|7,324|
||--------------------||--------------------|--------------------||--------------------|--------------------|--------------------|
|**Unrestricted funds**|||||||||
|General charitable funds|5,173||6,872||(7,371)|151|346|5,171|
|General non-charitable|||||||||
|trading funds|-||2,324||(2,171)|-|(153)|-|
||--------------------||--------------------|--------------------||--------------------|--------------------|--------------------|
|**Total general funds**|5,173||9,196||(9,542)|151|193|5,171|
||--------------------||--------------------|--------------------||--------------------|--------------------|--------------------|
|**Total unrestricted funds**|12,651||9,196||(9,542)|190|
-|12,495|
||--------------------||--------------------|--------------------||--------------------|--------------------|------------|
|**Total funds**|12,879||9,578||(9,898)|202|-|12,761|
||========|========||========||========|========|========|
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
**----- Start of picture text -----**
15. FUNDS – 2023
Opening Investment Closing
Balance Income Expenditure Gains/ Transfer/ Balance
£’000 £’000 £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**Restricted funds**|||||||
|---|---|---|---|---|---|---|
|Inpatient care funds|-|146|(146)|-|-|-|
|Outpatient care funds|-|156|(156)|-|-|-|
|Community care funds|-|112|(112)|-|-|-|
|General Clinical funds|-|20|(20)|-|-|-|
|Capital funds|76|-|-|-|(76)|-|
|Fundraising Programme|-|-|-|-|-|-|
||--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|**Total restricted funds**|76|433|(433)|-|(76)|-|
||--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|**Endowment funds**|||||||
|Alice Wisbey Capital Fund|24|-|-|1|-|25|
|D D McPhail|190|-|-|13|-|203|
||--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|**Total endowment funds**|214|-|-|14|-|228|
||--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|**Unrestricted funds**|||||||
|Designated fxed asset fund|5,065|-|-|-|229|5,294|
|Designated shops assets fund|41|-|-|-|471|512|
|Designated risk||||||-|
|management fund|1,498|-|-|(126)|-|1,372|
|Pension liability reserve|300|-|-|-|-|300|
||--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|**Total designated funds**|6,904|-|-|(126)|700|7,478|
||--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|**Unrestricted funds**|||||||
|General charitable funds|5,516|6,847|(7,186)|264|(268)|5,173|
|General non-charitable|||||||
|trading funds|-|2,411|(2,054)|-|(357)|-|
||--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|**Total general funds**|5,516|9,258|(9,240)|264|(625)|5,173|
||--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|**Total unrestricted funds**|12,420|9,258|(9,240)|138|76|12,651|
||--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|**Total funds**|12,710|9,691|(9,673)|151|-|12,879|
||========|========|========|========|========|========|
47
46
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
## **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 Inpatient 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 is intended to cover unexpected costs or income shortfalls, ensuring the long-term sustainability of the Hospice. The balance in this fund as at 31 December 2024 was £1,411k (2023 - £1,371k) most of which is managed by Rathbones, our investment manager.
The deficit arising out of the operating activities during the year resulted in the decrease in unrestricted general charitable funds of £700k (2023 - increase £231k).
The general funds represent the unrestricted funds of the group and are therefore “free reserves”.
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
|**16. OPERATING LEASE COMMITMENTS**|**Group**
**2024**
**2023**
**£’000**
**£’000**|**Group**
**2024**
**2023**
**£’000**
**£’000**|**Charity**
**2024**
**2023**
**£’000**
**£’000**|**Charity**
**2024**
**2023**
**£’000**
**£’000**|
|---|---|---|---|---|
|Amounts due:|||||
|Within 1 year
Within two to fve years
After fve years|434
1,191
666|501
1,189
802|66
158
10|69
206
31|
||--------------------|--------------------|--------------------|--------------------|
||2,291|2,492|234|306|
||========|========|========|========|
## **17. CAPITAL COMMITMENTS**
The group has committed to a cost of £60k feasibility study on the premises of Kenton Grange. Based on the feasibility report capital refurbishment is likely to take place in the year 2025. (2023: none).
## **18. RELATED PARTY TRANSACTIONS**
During the year, Trustees, Executive Team members and their close family members donated £325 and purchased £208 worth of Lottery tickets from the Hospice (2023: £1,120). There were no other transactions with related parties during the year (2023: none).
**----- Start of picture text -----**
19. STATEMENT OF FINANCIAL Unrestricted Restricted Endowment Total
ACTIVITIES IN THE PREVIOUS funds Funds Funds 2023
YEAR (2023) £’000 £’000 £’000 £’000
**----- End of picture text -----**
|**Income from:**|||||
|---|---|---|---|---|
|**_Donations and legacies_**|||||
|•Donations|1,784|433|-|2,217|
|•Legacies|996|-|-|996|
||--------------------|--------------------|--------------------|--------------------|
||2,780|433|-|3,213|
|**_Charitable Activities_**|--------------------|--------------------|--------------------|--------------------|
|•NHS commissioning|3,596|-|-|3,596|
|•Other income|100|-|-|100|
||--------------------|--------------------|--------------------|--------------------|
||3,696|-|-|3,696|
||--------------------|--------------------|---------------|--------------------|
|**_Other trading activities_**|||||
|•Fundraising events|251|-|-|251|
|•Gross income from shops and lottery|2,411|-|-|2,411|
||--------------------|--------------------|--------------------|--------------------|
||2,662|-|-|2,662|
||--------------------|--------------------|--------------------|--------------------|
|**_Investments_**|117|-|-|117|
||--------------------|--------------------|--------------------|--------------------|
|**Total income**|**9,255**|**433**|-|**9,688**|
||--------------------|--------------------|--------------------|--------------------|
49
48
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
**----- Start of picture text -----**
19. STATEMENT OF FINANCIAL Unrestricted Restricted Endowment Total
ACTIVITIES IN THE PREVIOUS YEAR funds Funds Funds 2023
£’000 £’000 £’000 £’000
**----- End of picture text -----**
|**Expenditure on:**|||||
|---|---|---|---|---|
|**_Raising funds_**|||||
|- Fundraising costs|1,417|-|-|1,417|
|•Fundraising events costs|230|-|-|230|
|•Shops and lottery expenditure|2,390|-|-|2,390|
|•Investment management costs|19|-|-|19|
||--------------------|--------------------|--------------------|--------------------|
||4,056|-|-|4,056|
||--------------------|--------------------|--------------------|--------------------|
|**_Charitable activities_**|||||
|•Inpatient services|1,721|146|-|1,867|
|•Day care services|437|156|-|593|
|•Homecare services|1,743|112|-|1,855|
|•Overall clinical support|1,293|19|-|1,312|
||--------------------|--------------------|--------------------|--------------------|
||5,194|433|-|5,627|
||--------------------|--------------------|--------------------|--------------------|
|**Total expenditure**|**9,250**|**433**|**-**|**9,683**|
||--------------------|--------------------|--------------------|--------------------|
|**_Net Income before_**|||||
|**_gains on investments_**|5|-|-|5|
|Net (losses)/gains on investments|150|-|-|150|
|Pension revaluation gain|14|-|-|14|
||--------------------|--------------------|--------------------|--------------------|
|**Net Income**|**169**|**-**|**-**|**169**|
||========|========|========|========|
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD. NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
## **20. THE CAREER AVERAGE REVALUED EARNING SCHEME (THE PENSIONS TRUST)**
Up until 1st 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.
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 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 2022. This valuation showed assets of £49.6m, liabilities of £57.1m and a deficit of £7.5m. To eliminate this funding shortfall, the Pension Trustee asked the participating employers to pay additional contributions to fund the scheme deficit of £1.67m. The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities and increase by 3% per annum on 1st April each year. It was anticipated that the deficit would be cleared by 31st March 2027.
During 2024, St Luke’s contributed £72,229 towards the deficit (2023 - £69,272).
Note that the previous valuation was carried out with an effective date of 30th September 2019. This valuation showed assets of £79m, liabilities of £93.9m and a deficit of £14.9m. To eliminate this funding shortfall, the Pension Trustee asked the participating employers to pay additional contributions to fund the scheme deficit. Annual deficit contributions by participating employers then total £1.53m pa due to the annual 3% increases, and the deficit to be cleared by 30th September 2027.
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**|**31 December 2024**|**31 December 2023**|
|---|---|---|
||**(£000s)**|**(£000s)**|
|Present value of provision|162|226|
||========|========|
51
50
## ST. LUKE’S HOSPICE (HARROW & BRENT) LTD.
## NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024
**----- Start of picture text -----**
20. THE CAREER AVERAGE REVALUED EARNING SCHEME 2024 2023
(PENSIONS TRUST) (continued) £’000 £’000
RECONCILIATION OF OPENING AND CLOSING PROVISIONS
**----- End of picture text -----**
|Provision at start of period|226|310|
|---|---|---|
|Unwinding of the discount factor (interest expense)
Defcit contribution paid|9
(73)|14
(69)|
|Remeasurements - impact of any change in assumptions|-|1|
|Remeasurements – amendments to the contribution schedule|-|(30)|
||-------------|-------------|
|Provision at end of period|162|226|
||======|======|
||**2024**|**2023**|
||**£’000**|**£’000**|
|Amounts due within one year|74|72|
|Amounts due after one year|97|170|
||-------------|-------------|
||171|242|
||======|======|
*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.
**----- Start of picture text -----**
ASSUMPTIONS 31 December 2024 31 December 2023
% per annum % per annum
Rate of discount 4.96 4.74
======== ========
**----- End of picture text -----**
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.
## 10. REFERENCE AND ADMINISTRATIVE INFORMATION
**Company Number** 02141770
**Charity Number** 298555
**Registered Office**
Kenton Grange, Kenton Road, Harrow, Middlesex HA3 0YG
The trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:
**Trustees**
Margaret Lustman (Chair of Trustees) Dr Carole Amobi – resigned 24/1/2024 Natalie Butler Liz Jewitt-Cross (Chair of People Committee) -resigned 13/03/25 Sarah Gigg Christine Glenn (Chair of Remuneration Committee) Paul Hill (Chair of Finance & Performance Committee) Sarah Livingston (Chair of Clinical Governance Committee) Jatin Patel (Chair of Audit & Risk Committee) Chandia Radia
Neel Radia Professor Stephen Spiro (Vice Chair) Raj Thakrar Claire Melia-Tompkins
**Key management personnel** Chief Executive Officer
## Lindsey Bennister
Medical Director Dr Charles Daniels – resigned 31/12/24 Director of Clinical Services Claire Porter – appointed 29/7/2024 Director of Operations Fran Deane Director of Finance Geethanjali Umaasuthan Director of People & Organisational Development Lorna Campbell - resigned 19/03/25 Director of Fundraising & Communications Joanna Pearce
Dr Charles Daniels – resigned 31/12/24 Claire Porter – appointed 29/7/2024 Fran Deane Geethanjali Umaasuthan
**Principal Bankers** Barclays Bank plc, Leicester LE87 2BB
**Auditors**
HaysMac LLP, 10 Queen Street Place, London EC4R 1AG
Rathbone Investment Management 8 Finsbury Circus, London EC2M 7AZ
**Investment Managers**
**Solicitors**
Curry Popeck, Devonshire House, 582 Honeypot Lane, Middlesex, HA7 1JS BDB Pitmans LLP, One Bartholomew Close, London EC1A 7BL
**Website**
www.stlukes-hospice.org
53
52
## **St. Luke’s Hospice (Harrow & Brent) Ltd**
**St Luke’s Hospice, Kenton Grange, 385 Kenton Road, Harrow, HA3 0YG**
**t: 020 8382 8000 e: info@stlukes-hospice.org** stlukeshospice stlukeshospice @StLukesHarrow Registered Charity Number: 298555 Company Number: 02141770.
54
St. Luke's Hospice (Harrow & Brent) Llmlted
Annual Report & Consolidated Financial Statements
For the year ended 31 December 2024
Charity Number". 298555
Company Number.. 02141770
Contents
Page
1. Introduction from Chair of trustees
2. About St Luke's Hospice
a. Vision
b. Values
. strategy 2025-2028
d. Main activities
3. Service review
4. Stralegic report
a. Achievements and perfomance
b. The year ahead
c. Volunteers
d. Relationships with stakeholders
5. StruGlure, governanGe and management
a. Public benef1t
b. Corporate structur8
Governance
d. Appointment of trustees
e. Trustee induction and training
f. PrinGipal risks
g. Our people
h. Remuneration policy for key management personnel
Diversity, equality and inclusion
Environmental impact- energy and carbon reporting
10
6. Financial performance
a. Financial performance
b. Fundraising approach. controls and performance
c. Retail and lottery perforrnance
d. Reserves policy
e. Inveslment poliGy
14
7. Statement of responsibilities of the trustees
19
8. Indèpendent Auditors. Reporl
20
g. Financial staternents
23
10. Reference and administrative information
45
1. INTRODUCTION FROM THE CHAIR OF TRUSTEES
In 2024 we continued to pmvide valuable and valued palliative and end-of-llfe servlces to the Harrow
and Brent communities across our core and ngw services at a tin7e of rfslng demand in a
challenging environment
With over 30 years, experience, Sl Luke's continues lo strive lo ensure that our services reflect the
community's needs and that our future can be assured in order lo serve and support future generations.
The positive experience of helping more patients and families with our wlder portfolio of services is a true
achievement, only possible due to the hard work of our team and the generosity of our voSunleers and
supporters.
Over the past year il has become even more evident that change is needed in the hospice sector generally
and St Luke's is no exception. As a Board, we have approved a new Strategy that focuses on aligning
improved quality of care with reinvigorated resources to match the evolving needs of our patients and their
families. To do this at a lime of ongoing f1nancial pressures requires optionality, intelligence and resilience,
all of which we are beginning lo weave into the fabric of our organisalion.
Furthermore il has become necessary to address long-term investment into our landmark bullding. Kenton
Grange. The need to modernise the space that is so important lo our day- and in-palienls and their families
as well as our teams has become Pressing and we recognise that a mulli-year programme of development
and investment will be required.
Given that Iransformalion of this scale requires lime and careful planning, there is a shared understanding
that the charity's financial outcomes will be challenging in the short term. Nolwithslarnding this slralegic
perspective. the Board is committed to be financially responsible and to restoring the organisation lo a
position whereby costs are fulty covered by more sustainable income streams.
Despilo the UnrtaInty that change and challenge present. our work is important and we are bSessed wth a
strong community of supporters whose generosity is outstanding. I would also like lo acknowledge the
efforts of all teams. volunteers and ITuslees whose hard work is so appreciated.
There is much still lo be done and we are confident that. with the continued backing of all our valuable
supporters and our excellent team, we will find the Sl Luke's future model for the next 30 years and more.
Meg Lustman
2. ABOUT ST LUKE'S HOSPICE
al Vision
A world where people experien the best possible last phase of life.
bl Values
Caring- CaTe of all Ih05e who deliver and need our services
Respect- Demonslrale respect and be open minded, inclusive and approachable
Excellence Create an environment of continually achieving our goals
Inclusivity- Strive to reach all sections cif our COTnmunity in 811 areas of work
Empowerment- Empower our community to Ive a better lffje
c) Strategy 2025.28
DuTing 2024, Sl Luke's developed a new three year strategy. It refflecls the diverse and Increasing needs
of our community for end-of-life support and care, and the challengiro external funding1andscape for
charitable hospices.
The London boroughs of Harrow and Brent are bNo of the most ethnically and culluTally diverse
boroughs in London, with high rates of depriv81ion. Our populations in these boroughs are also ageing,
and across the UK more people are dying or living with lrfe-limiting conditions.
Our strategy focuses on adapting our care services lo improve provision and acSIbilIty for our
community. We will do this by working wth the NHS. other charltable hospices, local government and
communities in the London boroughs of HaTrow and Brent.
Al the heart of our slr8legy is our response lo the financial challenges that the charitable hospice sector
is facing where funding has not kept pace with rising costs, increased demand and the changing needs
of our population. Our strategy reflects the urgent need lo achieve sustainable funding for St Luke's
Hospice in both the short- and longer-lerm.
We have three Strategic Goals. wK(h associated delivery priorities, and activities that form the hospice's
operational plan.
1. Quallty of care
We will be the best hospice we can possibly be. providing high quality and compassionate hospice
care and stjpport lo all people and their families who come into Sl Luke's or require our care al
horne.
Our dglivgry priorities:
1. Deliver responsive, personalised, high-quality, and compassionate care and support lo more
people and their families.
2. Provide early support lo individuals with lrfe-limiting illnesses, helping them maintain their quality
of lrfe.
3. Improve the PTOViSiOn of high-quality compassionate care using our clinical quality framework.
4. Enhance our compliance wth best practi$ and regulatory standards throughout all a$plS of
our operations.
To achieve this, we will..
Implement a new model of setvice delivery.
Investigate opportunities for enhancing the use of our hospice ward linpalient unill lo match
the needs of the population and improve the hospice's sustainability.
Expand and promote our Pall 24 Helpline as a single point of access for patients and families
lo expert advice, care and support 24 hours a day.
Introduce a new Living Well programme lo provide early support. reflecting the views of
people with lived experience and other local stakeholders.
Expand our respite care and support service for patients and carers through increased
engagement with 8ervice users, local partners and improved referrals.
Expand our bereavement support service including..
Introduce home visits lo ensure equity of aCsS to bereavement support.
Introdu a model of bereavement support for children and young people, supported
by aclivilies and events for children and young people, working collaboratively with
stakeholderslagencies in this field.
Design an educational programme for clinical staff that is aligned with service needs and theiT
¢ompelency framework.
Deliver an enhanced programme of audit, quality irnprov8m8nl projects and research.
2. Serving our communtty
We will embed ourselves at the heart of our local communty through increased engagement and by
working in partnership lo provide high quality and Compassionate hospice care and support lo our
community.
Our dellvery prlorttles..
1. Strengthen St Luke's role as a leading voice in palliative care in Harrow and Brent, by
Providing advi, guidance, and education, partnership with health, social care, and
mmunily organisalions.
2. Build our relationships with our local community lo establish Sl Luke's as the charity of choice
for palliative care, support, and advice in Harrow and Brent.
3. Expand our engagernenl with diverse communities lo better understand their needs and
enhance our care and support services.
To achieve this, we will..
Engage with local NHS primary care providers to increase knowledge and understanding of
Sl Luke's services and increase referrals, particularly in areas of the boroughs where referrals
are currently low.
Engage with local NHS Truslslsecondary care providers lo ensure effective working
relationships and understanding of our services, and to increase referrals.
Establish partnerships with local aulhorilylvoSuntary sector organisations lo Improve
knowledge of Sl Luke's services and support for patients and families.
Develop and sustain meaningful collaboration wilh1ocal faith leaders and community groups.
Develop opportunities lo provide expert training on palliative care lo external partners
including local health and social care organisalions and voluntary sector.
Increase public awareness of St Luke's care and services through enhanced communications
including digital marketing.
3. Sustainability
We will deliver strong leadership, financial stability, and dependable income sources, supported by
a skilled team of employees and volunteers ready to face future challenges.
Our delivery priortties:
Create dependable and efficient revenue sources through our fundraising campaigns, relaiS
and other commercial aclivilies.
2. Work with our NHS partners lo secure equitable and sustainable ftjnding for our clinical
services.
3. Create an organisalion culluTe where people are valued, included, and developed lo perfoTm
lo the best of their abilities lo deliver Sl Luke's strategic goals.
4. Design our estates and infrastructure lo be responsive lo the current and future needs of Sl
Luke's and our cornmunily.
To achieve this, we wlll:
Focus our fundraising on activities that maximise income generation and achieve year-
on-year growth.
Implement the recommendations of our retail strategy review to maximise the profil
contribution of our retail network.
Play a leading role in the development and implementation of North West London
Integrated Care Board's new Model of Care for community specialist paS1iative care in
Harrow and Brent, making the case for sustainable funding for charitable hospices.
Develop policies to SiJPPDrt Equity, Diversity, Inclusion in the workplace.
Introduce individual objectives and personal development planning for all staff through a
new Appralsal Policy.
Review our arrangernents for pay, reward and recognition.
Develop and promote wellbeing initiatives for slaff and volunteers including Mental Health
First-Aiders.
Determine future opportunities for our estsles including Kenton Grange. exploring
commercial ventures and partnership possibilities.
Key enablers
To deliver our strategic goals, our strategy is underpinned and enabled by..
Sound financial management.. robust finances and targets,. accurate analysis,. and accurate and
tirllely management information.
2. Creative and innovative communiGalions and marketing tsilored lo our target audiences and
aimed al raising the profile of Sl Luke's as we endeavour lo be the best hospice we can possibly
be.
dl Main Activities
The Charity's main focus is lo provide specialist palliative Gare lo the people of Harrow and Brent
facir@ lrfe~IiTniting illnesses. Our care includes..
Communil based care
We provide specialised care for patients and families with life-limiting conditions within their own
homes, including specialist palliative care nursing, crisis response care. and respite care, delivered by
our Hospice at Home team and specialist palliative care nuTses.
Two-thirds of our care is provided in the comfort of peoples, homes, as we respect that this is where
most people would like lo be looked after. Our specialist community team of nurses helps people to
manage more complex needs whilst our Hospice at Home team provides care that allows people lo
remain in their own homes by providing practical care and support. Our consullanls offeT oulpatlent
appointments in the community and also at the hospice's main building, Kenton Grange.
In
alient Unf(
We provide specialist care lo patients who can't be cared for in the community, including symptom
control, specialist respite care and end of life care delivered by a multi-disciplinary team of nurses,
doctors, healthcare assislanls, physiolherapisls and social Workers.
Our 12-bed inpalienl unil IIPUI al Kenton Grange cares for people in their final days, providing
intensive care lo help get symptoms under control or give respite care. Many of those who are cared
for in our IPU often return home again.
Patient and Famil Su
ort Services
We provide a programme of emotional and practical support lo patients and their families living with
life-limiting conditions. delivered by our specialist team of palliative care social workers, family support
workers, and trained volunteers.
Our services are intended to keep people feeling well, independent and mobile for as long as
possible. OUT hglislic approach lo care is intended lo support people's wellbeing, including emotional
support through services such as social work, spiritual care, exercise groups. advice on welfare
benefits, advance care planning SUPPOTI, complementary therapy and physiolherapy services.
In addition to caring for our patients. vve also provide bereavement support lo family membeTS and
carers, through our team of trained. supervised volunteers.
Pall 24
We provide 24-hour expert support lo patients, families and professionals over the telephone,
delivered by our experienced clinical staff. Our team provides advice, a rapid response in limes of
crisis and effectively co-ordinates care, from arranging prescriptions, lo gelling vital equipment
delivered - anything people need to avoid going to hospital and lo stay comfortably in their homes.
3. SERVICE REVIEW
Our service activity data reports for the financial p8riod 1 April 202410 31 March 2025. in line with Ictal
slalulory reporting requirements.
St Luke's Hospi supported 2020 service users12023', 20691.
Our speryalist palliative care community team (Brenll carried out 2072 visits lo patients in their homes, which
represents an increase of 10Yo from the previous year12023'. 18841.
Our Inpalienl unil saw 212 admissions in 2024, which is consistent wth admisslons In 2023. The Inpalienl
unit continues lo accept admission 7 days a week which resulted in 39 weekend admissions in 2024.
A particular highlight for 2024 is the incTea5ed activity across all areas of patient and family support services
to promote and support independence, acknowledging the power and benef11s of bringing people together to
socialise and learn from each other.
We implemented additional group activities to reach more people across our service, pre and post
bereavement, including walk and talk, chair yoga, sound relaxation and retreat days.
We provided 2207 social work sessions compared lo 2119 in 2023 (an increase of 4010) and this
service continues to grow into 2025 reflecting the demand for psycho-social and emotional
support.
We recruited an additional 35 volunteers within the bereavement and complementary Iher8Py
services. All volunteers in these services receive ongoing Iraining, supervision and reflective
practice.
We supported a larger group of people affected by complex psychosocial issues, for example.
unsettled immigration slalus, homelessness and mental ill-heallh.
Our team received commendation from North West London ICB for our work on Reducing Health
Inequalities.
4. STRATEGIC REPORT
a. Achievements and Performance
In the 2023 Annual Report and Slalulory Accounts, the following de5ivery priorities were idents'fied for
2024.
1. We wlll dellver a new strategy for 2025-2028
During 2024, Sl Luke's developed a new strategy focused on three Strategic Goals.. Quality of
Care, Serving our Community and Sustainability. The strategy started in January 2025 and is
Supported by a detailed operational plan and KPI'S, and quarterly reporting to the Board of
trustees.
2. We wlll work with the North West London ICB on the development of a new Mod91 of Care
During 2024, we have been a key partner in the North Wesl London ICB'S work programme to
develop a new Model of Care for community specialist palliative care services. This included
Sl Luke's Hospice invoSvement In advisory 8nd working groups, consullalions, and working in
partnership with NHS and charity OTganisalions to plan the implementation of the new Model
of Care.
Alongside, we have Teviewed our own clinical seTvice model, involving service users and
clinical teams lo consider how we can better meet the needs of our populations of Harrow and
Brent. Our new service model will be implemented during 2025.
3. We will improve the perforniance and contribution of our retail network
Sl Luke's Hospice Charity Shops Ltd (a trading company solely owned by St Luke's Hospice)
experienced a downturn in profil in 2023 which was forecast lo continue into 2024 and 2025.
This was a result of lower sales, poorer quality donations, a fall in footfall on the high street,
and increased costs due lo inflation across our network of 16 shops, all factors experience
across the charity retail sector. Our retail network contributes a third of our total income each
year.
Urgent actions were implemented from the start of 2024 to improve performance.
We commissioned the Charity Retail Consultancy lo carry out a retail strategy review.
We updated the governance of our trading company lo enhance oversight and
decision-making.
We restructured the leadership of the retail company, introducing new charity retail
expertise into the business.
We de5ivered a bespoke retail management development programme.
We improved the alignment between retail and hospice central teams including
enhanced marketing and communications support.
4. We will implemgnt new fundraising initiativos inGluding a new lottery partnershlp and we
will joln national campaigns that will incrèase awareness of hosplce fundlng as well as
fundralsing.
Sl Luke's Hospice has entered into a new lollery arrangement with Local Hospice Lottery
partnership, moving from in-house delivery during 2025.
We took part in the Big Give fundraising campaign for the first lime, ralslng £30k.
We participated in a Hospice UK National Legacy Campaign with 143 hospices across the UK
lo raise the importance and awareness of leaving Gifts in Wills.
We undertook an external review of our fundraising lo plan for growth and efficiencie5 in the
years ahead.
We participated in Hospice UK national campalgns lo raise awareness of the funding
challenges for hospices. In October, we hosted a visit from OUT local MP, Gareth Thomas,
who wrote lo the North Wesl London ICB on our behalf about the need for a more equitable
funding model for charitable hospices.
5. We will prioritisg the delivgry of our strategic ambitions around developing and valuing our
People.
Good progress has been made in slrengihening our people processes and infraslruclure.
We introduced a new learning and development programme across the hospice, including
lunchtime sessions. online training opportunities and a hospice-wide management
programme, People Managemenl- th& Ess&ntials. which has been allended by all rnanagers.
A bespoke programme for retail managers was also implemented, and Work started on a
nurse competency framework.
The clinical education team launched a new approach to supporting refiective practice for
clinicians.
The People Committee and Remuneration Committee were established, providing
governance and strategic thought leadership.
The internal People Policy Review Group was established to review arid update our people
policies, with a target completion dale of December 2025.
We retained Investors In People IIIPI accredilalion and undertook an IIP staff Survey.
A new focus on individual and personal development planning was introduced, to be
expanded during 2025.
6. We will ensure that St Luke's estate Is flt for purpose and flt for the future to deliver the
servlces our local community needs at end of life.
In 2024, we commissioned a Feasibility Study of our hospice building, Kenton Grange, by
Newmark la propety consultancy with expertise in health and charity seclorsl. Newmark
provided options for the long-lerm suslainabilily of Kenton Grange, identifying a planned
maintenance programme for the next 10 years. The recommendations and strategic
implications will be considered by the Board of trustees during 2025 and a programme of
capital works will follow.
b. The Year Ahead
In 2025, we will deliver a programme of actwilies that meet our d81iv8ry priorities set out in the Strategy
2025-2028 (see section 2.c Strategy 2025-20281. Progress will be reported in the Annual Report and
Sialulory Accounts for 2025.
In addition, the Board of trustees have approved three key transformation projects that are of highest
Priority wlh strategic implications for the future suslainabilily of the hospice.
1. Sl Luke's Service Model - shaping the future of our care
Determining how our services will support the needs of our local population and community.
2. Kenton Grange Redevelopment Project
Determining how our hospice building will support our service model and meet the needs of our
local community.
3. NHS Funding and ICB Model of Care for Community Specialist Palliative Care Services
Determining how we can achieve equitable and sustainable funding for our clinical services as a
charlty and co-commi8sioner of specialist palliative Gare serViS in Harr¢)w and Brent.
Volunteers
Al St Luke's, we are fortunate lo have a dedicated community of volunteers who contribute their lime
and skills across most areas of our charity. From our award-winning gardening team of volunteers lo the
mmilled volunteers supporting our retsil shops, their efforts are instrumental in helping us fulfil our
mission of providing high-quality palliative and end-of-life care for the communities of HarTOW and Brent.
Throughout 2024, our hospice volunteer numbers increased from 497 in 202310 521 in 2024. refiecting
the ongoing dedication and commitment of our volunteers. In December, we were able lo celebrate and
recognise 41 volunteers who have worked for us for more than f1ve years. with a handfu1 of volunteers
celebrating their 20 years of servi.
Volunteers are crucial In the delwery of our services for patients and families. Our trained volunteers
assist bereaved families in person OT by phone through our bereavement programme and in 2024, we
were delighted that the team won the prestigious Harrow Heroes Team of the Year award.
We continued lo successfully recruit volunteers for key areas. induding bereavBmenl support,
complemen13ry therapy, reception seTVfES, retail, gardening, and Offi support, further enhancing the
compassionate re we provide.
We are truly grateful for the unwavering generosity of our volunteers, whose contributions make a
meaningful difference to the lives of our patients and their families.
d. Relationship with Stakeholders
Sl Luke's Hospice places great value on engagement with OUT stakeholders. building positive
relationships across all areas of our work. In 2024, a Priority for Improvement was the development of a
Patient Engagement Strategy, and we have introdud new and engaging ways lo seek and receive
feedback from our service users and their families.
Vve strive lo build strong relationships with our local community, working with a range of faith groups,
schocils, businesses and local organisalions lo raise community awareness of our work and the services
we provide. We were delighted lo join together with the Trustees of the Shree Swatninarayan Mandir
KiSbUry lo be part of their Temple's len-year celebrations and lo host their spiritual leader during the
summer of 2024. We were also very grateful to OUT Patron, The Lord Popal, for hosting a magnificent
reception on our behalf al the House of Lords for over one hundred of our community and key
stakeholders.
We continue to work closety with our NHS and local authority partners, including the local ICB, London
North West University Hospitals NHS Foundation Trust and Brent Council Social SeNices. We are
grateful for the interest and engagement from local Trusts and Foundations who fund our work, and
voluntary sector partners. Our relationships with our charity hospice partners in the area remain strong,
providing opportunities lo share knOedge and experience, expertise and resources whenever
possible, and working in partnership.
We engage with our staff across the hospice and our relai1 network through staff surveys, 'Slaff
Conversation, events with the CEO, and regular communications lo keep staff informed and engaged.
Many of our staff volunteer lo help at fundraising events and we are very grateful for their engagement
and support.
5. STRUCTURE. GOVERNANCE AND MANAGEMENT
Reference and administratNe infomation sel out al the end of the report form part of the formal report.
The purpos8 of the charity, as set out in ils Articles of Association are'The relief of sickness and the
eseTvalion of health of those suffering from any life limiting illness, primarily but not exclusively, within the
areas of the London Boroughs of Harrow and Brenl by..
maintaining a Hospice providing palliative and end of lrfe care for them in a range of settings..
10
2. promoting and providing servIs, support and care for them, their families, friends, and carers to help
relieve physical, emotional, mental, or spiritual distress.,
3. promoting and providing education about all aspects of palliative and end of life care,.
carrying out research into the development and improvement of care seNices. in particular all aspects of
palliative and end of life care., and
5. promoting and providing other services and support in such ways as the Iruslees shall from time lo lime
think fil through the prOvisn of health and social care Servi of all types..
Public Benefit
The charity exists lo provide a palliatThie care end of lrfe service for the Tesidenls of Harrow and Brent.
In reviewing the objectives and activities for the year, the trustees have satisfied themselves that all
our charitable activities focus on that care and further our charitable purposes for the public benefit.
The Iruslees lake into account Charity Commission guidance in this regard. The charity is a local
organisalion providing professional and compassionate servi$ lo the community in Harrow and
Brenl.11 receives the majority of ils funding from local individuals and organisalions (including local
NHS commissioning), thef0 beneficiaries are mainly {allhough not exclusively} from the London
boroughs of Harrow and Brent.
b. Corporate Structurg
The Articles of Association govern the charity and set out its charitable objectives and powers. In 2023,
updated Articles of Association were adopted with Charity Commission consent.
Th8 organisalion is a charitable company limited by guarantee. incorporated on 22 June 1987.
Sl. Luke's Hospice IHarrow & Brenll Ltd. has a wholly owned trading subsidiary, St. Luke's Hospice
(Harrow & Brent} Charity Shops Ltd (company number 02454552} through which il operates a neOrt¢ of
charity shops and a lottery. The trading subsidiary exists lo maximise income for the hospice and a11
profits are donated lo St Luke's Hospice using Grfl Aid regulations. In 2024, a governance review was
carried out for the trading company and new Articles of Association and Deed of Covenant were
approved and adopted by the Board of Iruslees. In addition, a review of the lottery wa5 undertaken an
plans approved to move lo an external lollery provider which will be fully implemented in 2025.
Governance
Sl Luke's Hospice is governed by a Board of trustees which meets al least 4 limes a year. The Board of
Iruslees is responsible for setting the strategic direction of the hospice. Additional Board business is
carried out between formal meetings in line with procedures sel out in the Articles of Association,
including discussion, decisions and voting by email. In addition to attending Board meetings, every
Iruslee sils on al least one Committee.
The hospi has fwe sub-committees..
Finance & Performance Committee {F&PI - overseeing the financial performance of th8 hospice
and the delivery of 51ralegic objectives in line with resources. including income generation.
marketing, IT, and eslales management.
Audit and Risk Committee IA&R) - overseeing risk management, govemance. and compliance
across the hospice.
Clinical Governance Committee ICGC)- overseein9 all areas of governance and compliance in
relation to clinical services and patient safety.
People Committee {PC}- overseeing all areas of people, culluTe and organisalional development.
Remunerallon Committee IRemCol- overseelng the remuneration of Senior management.
The Board clelegales day-to4ay management of the charity lo the Chief Executive Officer and the
Executive Team.
All Iruslees give their lirne voluntarily and receive no benefits from the charity. Any expenses reclaimed
from the charity are sel out in Note 910 tho Accounts.
d. Appointmgnt of Trustees
Trustees, including the Chair of Iruslees, are apFX)inled by the Board following an open recruilmenl
process including advertising, application and interview. The Board reviews the skills il needs in deciding
selection criteria lo maintain breadth of expertise. Once appointed a Iruslee will serve for an initial lerm
of 3 yeaTS, with a maximum of 3 terms. In 2024. one Iruslee resigned from the Board.
e. Trustee Inductlon and TraSnlng
Sl Luke's Hospice operates a thorough induelion programme for all new trustees, induding engagement
with our services, and meetings Mrilh the Chief Executive Officer and members of the Executive Team.
Tru$lees are provided with a comprehensive pack of information foT reference including the Charity
Governance C(xle. All Iruslees are required lo complete e-learning modules via the hospice's online
training portal and are also offered relevant training COUTses. Annual appraisal of all Iruslees is
onducted by the Chair and Vice-chair. In addition, the Chair has an annual appraisal which is led by
the Vice-chair.
Principal Risks
St Luke's Hospice has further embedded ils approach lo risk management during 2024. The Audit and
Risk CorNmittee mel three times during the year including a meeting with the hospice's auditors lo
review the audited accounts. A Board Assurance Framework and Corporate Risk Register has been
embedded into practice and is supported and informed by an internal clinical governance framework.
Further deve5opmenl has taken pla of the Vantage incident, risk and compliance managernenl
software during 2024. New modules have been implemented this year including the Care Quality
Commission compliance modul8 and the complaints and compliments module.
The Executive Team and the Audit and Risk Committee have agreed the organisation's principal risks
which are regularly reviewed. Organisalional policies and procedures are in place in relation to the
principal risks.
Risk
Clinical Services
Management l Mitigations
Education and training provisiors
Competency programme5
Arrangements foT clinical and consultant oncall
Finance and Performance Committee
Regular monitoring of management accoun1$ and financial
position
Approved budget for financial year
Appointed auditors
Financial recovery plan for 2025 and beyond
Strategic objectives
Board and Executive Team away days for strategic
planning
Internal staff engagement and communications
Staff survey
Regular meetings with commissioners
Contract in place
Provision of monthly activity and quality data
Financial sustainability
Transforrnation
Commissioning
12
Governance and compliance
Clinical Governance Commlttee and Board18vel
committees
Internal governance groups
Risk, incident and complaint management
Patient feedback measures and strategy
Renumeralion Committee
Specialist advisor support
Contracts of employment
Structural surveys
Planned maintenance programme
Strategic plan for building upgrade
External expert advisors
Risk assessment
Audit and monitoring programmes
Training and education
External IT contractor
Cyber securty
Safeguarding lead and Iruslee with responsibility for
safeguarding
Safeguarding training and compliance monitoring
Freedom to Speak Up Guardian
Health and Safety Group and Audit and Risk Commrttee
Health and Safety competent advisors
Various risk assessment
Business Continuity Plan
Communications and marketing team
Mailings, social media and engag8menl events
People Committee
Recruilmenl, probationary and appraisal processes
Competency programrnes
Mandatory training and exlemal training opportunities
Education team
People Committee
Dwerse recruilmenl methods
Information Governance Group
Data Protection Officer, Senior Information Risk Officer,
Caldicoll Guardian
Compliance with the Data Security and Protection Toolkit
{DSPT)
Employment law, HR and payroll
compliance
The environment
Infection prevention and control
Infrastructure
Safeguarding
Health and safety
Communication and engagement
Workforce capability
Workforce recruf(menl
Data governan, security, Privacy and
quality
g. Our People
There were, on average, 143 full-lime and part-time IFfipTI staff employed In 2024 in the hospice and
the hOspi'S Shops company12023.. lPT staff 1521.
Staff FTIPT
Shops Company
Hospice
Total
Year 2024
50
93
143
Year 2023
54
98
152
In 2024, a total of 52112023.. 497} Ople volunteered at Sl Luke's Hospice- 411 in retail, and 110 in the
hospice.
13
h. Remuneration Policy for Key Management Pèrsonnel
The Rernuneralion Committee consists of the Chair of trustees, Vice Chair of trustees, Chair of Financo
& Performance Committee, and is chaired by a fourth tTUStee.11 has delegated responsibility from the
Board for pay and remuneration of the Chief Executive Officer and Executive Team. In 2024. an external
agency was commissioned lo carry out a benchmarking exercise for Executive Team salaries and
benefits with reference to hospice, public, charity and private sectors.
Diversityi Equity and Inclusion
In 2024, we refreshed our Dignity al Work policies and Flexible Work policies. In 2025. staff will be
engaged in setting the EDI agenda as part of the development of a new Equity. Diversity and Inclusion
strategy for the hospice.
Environmental Impact - Energy and Carbon Reporting
We progressed with a number of initiatives in 2024 10 improve our impact on the environment.
We commissioned a building survey of our Kenton Grange sile to understand the general
ondilion and remedia5 work required to ensure the building remains in a salisfaclory operating
condition.
We commissioned a Energy Performance Certificate Survey al the start of 2025 in order to
understand the Kenton Grange sile's current energy efficiency. Recommendations made by the
assessor for potentially improving the energy performance of the building will be reviewed and
ncorporaled into the buildings planned prevenlalive maintenance programme where practically
and economically feasible.
We worked with our waste management provider lo ensure that we are prepared for the changes
in guidelines for recycling for workplaces and commercia1 waste collections from March 2025.
We continued our recycling progamme including plastics, papers. balleries, loner cartridges and
the recycling of rag across our retail operation.
We introduced electri¢ v4ns for our retail operation.
We paused other initiatives such as the replacement of windows whilst we inv6sligale the
structural repairs required al our Kenton Grange sile.
6. FINANCIAL PERFORMANCE
a. Financial Performance
In 2024, the Hospice Group recorded a deficit of £118k12023.' surplus £169k). Compared to last year.
this represents an increase of £758k in legacies, a £664k decrease in contract income (out of which
£640k relates to Ageing well programmel, a £38k rise in investment gains. a £214k increase in costs
due lo inflation, and a £204k Teduclion in contributions from our shops.
The Charity's income arises from..
2024
£000
3,032
2,330
1,754
2,324
137
9,577
2023
£000
3,696
2,468
Increasel{decreasel
ConlTact income
Fundraising
Legacies
Shops Company, including the lottery
Interest & dividend
Total income excluding unrealised investment
gains.
{18Yol
{60/01
2,411
117
9,688
{40/01
{1 ¥0)
14
The Group's total income decreased by 1 /01£287kl compared lo the previous year, prior lo accounting
for unrealised investment gains and losses. There has been a 760fi1£758kl increase in legacy income
and a 180101£664k} reduction in contract income primarily due lo the non-renewal of the Ageing Well
fijnding programme {£640kl. All other operational in¢ome streams Saw reductions.
Total group costs increased by 20/0. driven by irfflation and investment in IT infrastructure including EMIS
{£50k). Communication and marketing expenses have been reclassified from fundraising costs lo
enlral support costs during the year.
The net profil contribution from the Shops Company saw year on year decline in 2024 as a result of
shop closures, a drop in sales, and higher costs related lo new vehicle leases, propety dilapidation. and
the full-year impact of the new Waverley warehouse.
As a result of the operating deficit and delayed cash receipt from legacies, cash reserves declined from
£1.7 million lo £1.3 million and total reserves declined from £12.8m to £12.7m.
b. Fundraising Approach. Controls and Performance
Performance
Sl Luke's Hospice is dedicated lo engaging and collaborating with its local community, whilst also
maintaining high standards of fundraising and lollery activity. In a particularly challenging income
generating environment for Ihe hospice sector, Sl Luke's is immensely appreciative of the continued
commitment of our local communities of Harrow and Brent lo all our work in the past year.
A 29 /0 income growth was achieved in 2024, resulting in a gross contribution from Fundraising of
over £3.5m. This was madè up of £1.3m fr()m multiple fundraising income streams {Individual
Giving, In-memory, Corporate and Community, Major Donors, Trusts and Foundations and Gift Aid),
as well as Legacies, Events and from the Lottery. The lottery contribution and perfomance are
reported within the Shops company performance section below.
Gffts in Wills remain our largest income stream with £1,753k being received from over 40 legacies,
and 2024 ended with a very healthy legacy pipeline, the highest in the last five years. We remain
incredibly grateful for those people who choose to remember Sl Luke's Hospice in their Wills.
The Big Give campaign lo Support our Nurses. a new initiative for Sl Luke's, raised just over £27k,
with over 139 donations {23 of which were new support8rs}. In-memory saw significant growth from
MuchLoved Iribule pages, with donations increasing from £39k in 2023, to over £84k in 2024.
Events income was slightly down on the previous year, and in 2025 we will concentrate on fewer
events, and re-brand our flagship event lo boost income. The Annual Walk, in f(s 27th year,
exceeded expeclalions, bringing in over £80k with 70 walkers 18king lo the Shropshire Hills for a
four-day walking challenge.
A fundraising review, und8rlak8n by Compton Fundraising Consullanls, was conducted at the end
of the year to analyse our activity, database, supporter journeys and performance. As a result, a
blueprint and fundraising roadmap has been developed, focusing on growth, efficiencies and
sustainability for 2025 and beyond.
In 2024, Sl Luke's was incredibly grateful lo receive tremendous support from local businesses,
charitable Trusts and Foundations and grant-giving funds of a51 sizes. Our huge thanks to all those
listed and those who prefer lo remain anonymous..
15
Albert Hunt Trust., Ardwick Trust,. Arja Samaj Middlesex Hindu Charty UK,. Bell Container Trading,.
Bloomberg,. Brent Health Mallers,. Caron Kealing Foundation., Cecil Rosen Foundation,.
Charterhouse Accountants,. City Bridge Foundation,. D S Cohen Charitable Trust., The February
Foundation., Hamilton Wallace Trust., H8rapan Trust., Hodge Foundation,. Hospital Saturday Fund..
Jean and Derek King Charitable Trust,. The Kingsbury Charity,. Lenore Reynell Trust., Mahavir Trust,.
MAPS Medical Benevolent Charitable Trust., Middlesex Mark Benevolent Fund,. M K Charitable
Trusl,- National Lottery Community Fund., RUB White Charitable Trust,. Screwfix Foundation,. SPAR
{UKI', The Arts Society Harrow,. The Woltson Foundation., and Toureen Group.
2. Controls
Sl Luke's Hospice has voluntarily registered wlh the Fundraising RUlator, is a member of Hospice
UK, the Hospi Lollery Association and the Hospice Income Generation NelMork IHIGNI. In 2024,
the Lottery remained in-house (pending a move to Local Hospi Lollery in 20251 and is licensed
rith the Gambling Commission. Sl Luke's also signed up lo the national Hospice UK Legacy
Campaign in 2024, joining together with 142 other hospices a¢r05s the country lo promote the
importance of leaving gifts in will.
Sl Luke's 1$ ¢ommitled lo operating within the Fundraising Code of Practice, empSoying a team of
paid colleagues to deliver our fundraising and communications activities. Many of our fundraisers
are also members of the Chartered Inslilule of Fundraising. We have a dedicated supporter care
team responsible for data maintenance and record-keeplng lo comply with Fundraising Regulator
requirements. In the period of 1 January to 31 December, we received f1ve fundraising complaints,
all of which were minor, and were investigated and resolved lo the supporter's satisfaction.
From time lo time, Sl Luke's engages with professional Ihird-party suppliers lo help raise funds,
particularly where we do not have the expertise in-house. including mailing houses and fundraising
agencies, lo undertake some direct mailings aTTrd telephone appeals. Sl Luke's also contracts
services lo Legacy Link, a legacy adminislralion company, to administer legacy donations. The
Hospice is also signed up to the Fundraising Preference Service to enable individuals to Dpl out of
fundraising communications from us. and we received one request through this service in the past
year.
The Director of Communications and Fundraising is a member of the internal Information
Governance Group and a member of the Fundraising team allends the hospice's Health and Safety
Group. The team also liaise dosely with, and seek guidan from, the Data Protection Officer lo
ensure data processing is in line with GDPR Compliant procedures. All fundraising activities are
Teported lo the Finance and Performance Committee on a quarterly basis by the Director of
Communications and Fundraising.
The fundraising team will COT)linue to build on the strategies implemented this year to steward
existing donors and acquire new supporters lo generate and increase income for Sl Luke's Hospice
in the new financial year.
c. Retail and Lottery Pgrformanco
Sl Luke's Hospice Shops Company Ltd continued lo geneTale profits in support of the Hospice's vital
work and servicès. Over the past iwo years, we experienced a decline in profitability whlch persisted into
2024. This was driven by a combination of factors affecting the wider charity retail sector, including lower
sales, reduced quality and volume of donations, declining high street foorfall, shop closures and rising
costs due to inflation across our neork. The costs also increased due lo new vehicle leasing, cost of
dilapidations and full year new warehouse operational cost. The nel contribution from all retail activity
lincluding e<0mmer} for 2024 was £153,054, down from £357,525 in 2023. Although quality of the
donated goods remained low, our shops continued lo benefit from strong community support. During the
year, one shop closed due lo the expiry of ils lease. By the end Df 2024, the Shops Company operated
16 retail oullels.
To address these challenges and begin a retail turnaround, we implemented several key actions during
2024..
Commlssloned a Retall Strategy Revlew.. The Charity Retail Consultancy was engaged lo carry Out a
comprehensive review of our retail operations.
Strengthenod Governancg: We updated the governance structure of the Shops Company lo improve
oversight and support beller decision-making.
Rgstructured Leadershlp: A new leadership structure and skills were introduced, bringing in charity
retail expertise lo guide the business.
Developed Managomgnt Capabilities: A bespoke retail management development Programme was
delivered lo upskill our team.
During 2024, we received 112023.. 6} complaints in relation lo our retail neork.
Si Luke's Hospice currently operates an in-house lollery, which is licensed by the Gambling
Commission. St Luke's is a member of the Hospice Lottery Association. and provides regular weekly
data and regulatory returns to the Gambling Commission as requested. However, the cost of running the
lottery, Combined with declining player numbers and cancellations, has led to a decision to outsource
this activity lo the Local Hospice Lottery for 2025. Lollery income made a £249k contribution lo the
hospice in 2024 la decline in income since 20231 with around 3,600 players participating in the weekly
game. Player retention is the key focus al the present time for the lottery, and pro-active recruitment for
players will follow once the lollery has been outsourced.
d. Reserves Pollcy
The Board of Trustees Reserves Policy aims lo maintain six months of total expenditure as reserves.
Adequate resetves also ensures that there are sufficient liquid funds available to meet unexpected
shortfalls in ils funding streams, liming drfferences in Teceipl of those funds, or sudden increases in
costs.
The Finance and Performance Committee of the Board of Trustees reviews the Reserves Policy in line
with future anlicipaled financial demands of the Charity. In 2024, reserves of £4,948k (six months total
expenditure of £9.8971, compared ID £4,842k in 2023 (six months lolal expenditure of £9,683kl wi15 be
considered adequate by the Board of Trustees lo meet the policy.
Total free reserves excltjding Fixed asset reserve and designated funds held al 31 Gl December 2024. as
per the table below, were £5,171 k. This is just above the required £4,948k of six-monlh operational cost.
Therefore, the Trustees confirm the compliance of the Charity's Reserves Policy.
The Risk Management Reserve of £1,411 k was estsblished lo help the Hospice address any
operational risk that could arise in the future.
Comprehensive details about the Pen$ion Deficit Reserve can be found in Note 20 to the Accounts.
As al 31st December 2024, the Charitable Group held the following General and Designated Reserv88.'
Fund
£OOO's
2024
5,233
Tlmoling for Usg
2023
5,294
Designated Fixed Asset
Fund - Hospice
Designated Fixed Asset
Fund - Shops
TOTAL Deslgnated
Flxed Asset Funds
FREE RESERVES
General Unreslricled
Fund
Risk Management
Reserve
Pension Deficit Reserve
The designated fixed asset funds represent
the nel book value of the fixed assets. These
funds are idenlffied separately as they are
illiquid funds and not available for use.
380
512
5.613
5,806
5,171
5,173
Available for general purposes and core costs
1,411
1.372
General Purposes - against perceiv8d
potential risks to income- see below
Held towards a potential future buy-out of the
Defined Benefits Pension Scheme - see Note
20 of the Financial Statements
Total Reserves available to spend
300
300
TOTAL LIQUID
RESERVES
TOTAL
UNRESTRICTED
FUNDS
6,882
6,845
12.495
12,651
As per Balance Sheet
Investment Policy
Messrs Ralhbones plc were appointed as Inveslrnenl Managers to the Charity in 2016 to manage the
investment porrfolio with an initial allocation of approximately £1.6m. An additional investment of £2.5m
was made in December 2021. Before placing investments on beha of the Charity, the Iruslees have
asked the fund managers lo screen for tobacco and health Gare companies. The fund managers report
lo the Charity on a quarterfy basis.
As at 3151 December 2024 the investments were valued al £4,182k {2023 - £4,011 K).
Changes in the investments held are detailed in Note 11 of the Accounts.
18
7. STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES
The Iruslees are responsible for preparing the Trustees, Annual Report and the financial statements in
accordance with applicable law and United Kingdom Generally Accepted Accounting Practi (United
Kingdom Accounting Standards).
Charity Law in England and Wales requires the tru51ees to prepare financial statements for each financial
year which give a true and fair view of the state of affairs of the charity and the group and of the incoming
resources and application of reSoUrs, including the income and expenditure, of the charity and the group
for that period. In preparing these financial slalemenls, the trustees are required lo..
select suitable 8ccounting policies and then apply them consistently
observe the methods and principles in the Charities SORP
make judgemgnts and eslimales that are reasonable and prudent
slate whether applicable UK Accounting Standards have been followed subject to any material
departures disclosed and explained in the financial statements
prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the charity will continue in business
The Iruste8s are responsible for keeping propeT reGords that disclose with reasonable accuracy al any time
the financial position of the charitable company and enable them to ensure that the financial statements
comply wth the Companies Act 2006. They are also responsible for safeguarding the assets of the
¢haritable company and group and hence for taking reasonable steps for tho prevention and detection of
fraud and other irregularities. So far as each of the Iruslees is aware al the lime the report is approved..
there is no relevant audit information of which the charity and group's suditors are unaware
the Iruslees have taken all reasonable steps that they ought lo have taken lo make themselves
aware of any relevant audit information and to establish that the auditors are aware of that
information
The trustees are responsible for the maintenance and integrity of the charity and f1nancial information
included on the charil*s website. Legislation in the United Kingdom governing the preparation and
dissemination of financial slalements may vary from legislations in their jurisdictions.
Audltor
On 18 November 2024 the company's auditor changed its name from Haysmacintyre LLP lo Haysmac LLP.
Haysmac LLP has indicated ils willingness lo be reappointed as slalutory auditor for the next financial year.
The Trustees, Report, which incorporates a Strategic Report, was approved by the Iruslees and signed on
their behalf by
Margaret Lustman
Chair of Trustees
Date
2025
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ST. LUKE'S HOSPICE (HARROW &
BRENT) LTD
We have audited the financial stalemenis of Sl. Luke's Hospi (Harrow & Brenll Ltd for the year ended 31
December 2024 which comprise the Consolidaled Sialemenl of Financia1 Aclivilies, the Charity and Group
Balance Sheets, the Slalemenl of Consolidated Cash Flows and notes to the financial slalements, 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 Fin8ncial Reporting Sl&nd&rd applicable in the UK grKI Republic of Ireland (United
Kingdom Generally Accepted Accounting Praclicel.
In our opinion, the financial slalemenls-.
give a true and fair view of the slate of the group's and of the parent charitable company's affairs
as at 31 December 2024 and of the group's and parent charitable company's nel movement in
funds, including the income and expenditure, for the year then ended-,
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice.. and
have been prepared in accordance with the Tequiremenls of the Companies Ad 2006.
Basss for opinion
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 AudiloT'S
responsibilities for the audit of the financial statements section of our report. We are independent of the
group in accordance with the ethical requirements that are relevant lo our audit of the financial slalemenls in
the UK, Including the FRC'S Elhica1 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 lo provide a basis for our opinion.
Conclusions relating to going concgm
In auditing the financial slalements, we have concluded that the Iruslees. use of the going concern basis of
accounting in the preparation of the financial slalemenls is appropriate.
Based on the work we have performed, we have not identffied any material uncertainties relating lo events
or conditions that, individually or collectively, may cast significant doubt on the group's ability lo continue as
a going concern for a period of al le851 twelve months from when the finanaal statements are aulhorised for
issue.
Our responsibilrf(ies and the responsibilities of the Iruslees with respect to golng concem are described In the
relevant secb'ons of this report.
Other information
The tmstees are responsible for the other infom)ation. The other information comprises the information
included in the Trustees, Annual Report and the message from the Chair. Our opinion on the financial
slalemenls does not cover the other information and, except lo the extent olheNise explicitly slated in our
report, we do not 8xpr8ss any form of assurance conclusion Iher80n.
In connection with our audit of the financial stalemenls, our responsibillty is lo read the other information
and, in doing so. consider whether the other infomalion is materially inconsistent with the financial
slalemenls or our knowledge obtsined in the audit OT olhemise appears lo be materially mi88lated. If we
identify such maleTial inconsistencies or apparent material misstalemenls, we are required lo determine
whether there is a material misslalement in the financial slalements or a material misslatemenl of the other
information. If, based on the work we have perfom)ed, we conclude that there is a material misslalement of
this other information., we are required to report that fact. We have nothing lo report in this Tegard.
20
Oplnlons on other matters prescribgd by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit..
the information given in the Trustees, Annual Report (which includes the strategic report and the
directors. report prepared for the purposes of company lawl for the financial year for which the
financial slalemenls are prepared is Consislenl with the financial slalernenls,. and
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 oxception
In the light of the knowledge and understsnding of the group and the parent Charitable company and its
environment obtained in the course of the audit, we have not identified material misslalements in the
Trustees, Annual Report (which incorporates the strategic report and the directors, report).
We have nothing lo report in respect of the following matters in relation to which the Companies Act 2006
require us to report to you rf, in our opinion..
adequate accounting records have not been kept by the parent charitable wmpany. or returns
adequate for our audit have not been received from branches not visited by us., or
the parent charitable company financial stateTnents are not in agreement with the accounting
records and returns., or
rtain disclosures of Iruslees, remuneration specrfied by law are not made.. or
we have not received all the information and explanations we requir8 for our audit.
Responslbllltles of trustees for the flnancial Statements
As explained more fully in the trustees. responsibilities slalemenl sel out on page 19. the trustees {who are
also the directors of the charitable company for the PUTposes of company lawl are responsible for the
preparation of the financial slalemenls and for being satisfied that they give a true and fair view, and for such
internal control as the trustees determine is necessary to gnable the preparation of financial slalements that
are free from material misslalemenl, whether due lo fraud or error.
In preparing the financial slalemenls, the Iruslees are responsible for assessing the group's and the parent
¢harilable 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 Iruslees either intend lo liquidate
the group or the parent charitable company or lo Cease operations, or have no realistic alternative bul to do
so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial slalemenls as a whole are
free from material misstatement, whether due lo frakjd or error, and lo issue an auditor's report that includes
our opinion. Reasonable assurance 15 a high level of assurance, but is not a guarantee that an audit
conducled in accordance with ISAS IUKI wll always dBlecl a material misslalemenl when il exists.
Misslalemenls can arise from fraud or error and are considered material rf, individually or in the aggregate,
they could reasonably be expected lo influence the economic decisions of users taken on the basis of these
financial statements.
Irregularities, including fraud, are instances of non-compliance wf(h laws and regulations. We design
procedures in line with our responsibilities, outlined above, lo delecl material misslalements in Tespecl of
irregularities, including fraud. The exlenl to which our procedures are capable of detecting irregular(ties.
including fraud is detailed below..
Based on our understanding of the gTOUP and the environment in whi¢h il operates, we identified that the
principal risks of non-compliance with laws and regulations related lo Complian with regulatory
21
requirements of the Care Quality Commission, Charty Commission, employment law and health and safety
regulations, and we considered the extent lo which non-compliance might have a material effect on the
financial slatemenls, Wo 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 InntiveS and opportunities for fraudulent manipulation of the financial
slalemenls (including the risk of override of conlrolsl. and determined that the principal risks were related lo
recognition of income and management bias in certain accounting eslimales. Audit procedures performed by
the engagement team included..
Inspecting Iruslees, meeting minutes.,
Inspecting correspondence with regulators and lax aulhorilies,.
Discussions with management including consideration of known or suspected instances of non-
compliance with laws and Tegulalion and fraud.,
Evaluating management's controls designed lo prevent and delect IegularltieS'.
Identifying and lesling journals, in particular journal entries posted al the year-end or wlh unusual
descriptions,. and
Challenging assumptions and judgements made by management in their critical accounting estimates.
Becaus& of the inherent limitations of an audiL there is a risk that we will not detect all irregularibes, including
those leading to a material misstalemenl in the financial statements or non-compliance with regulation. This
risk increases the more that compliance with a law OT regulation is removed from the events and
transactions reflected in the financial statements, as we will be less likely lo become aware of instances of
non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as
fraud involves intentional concealrnenl, forgery. collusion, omlssion or misrepresentation.
A further description of our responsibilrf(ies for the audit of the financial statements is located on the Financial
Reporting Council's website at.. www.frc.org.uklaudilorsresponsibililies. This descriptn forms part of our
audiltsr's report.
Use of OUT rgport
This report is made solely lo the charitable company's members, as a body, in accordan with Chapter 3 of
Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we rllight stale to the
charitable company's members those mallers we are required lo slate lo them in an Auditor's report and for
no other purpose. To the fullest exlenl permilled 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 audr(
work, for this report, or for the opinions we have formed.
Lee Stokes (Senior slalulory audilorl
for and on behalf of Haysmac LLP, Stalulory Auditor
10 Queen Street Place,
London,
EC4R 1AG
22
9. FINANCIAL STATEMENTS
ST. LUKE'S HOSPICE (HARROW & 8RENn LTD.
CONSOLIDATED sfATEMENT OF FINANCIAL AcfiviTIES
Ilncluding an Income and Expenditure Accountl
FOR THEYEAR ENDED 31 DECEMBER 2024
Unrestrlcted Restrlcted
funds
Funds
£'oTh)
Endowment
Funds
E'ooo
Total
2024
Total
2023
£'ooo
Notes
Intome from:
Donotion5 ond legacie5
Donations
Legacies
1.712
1,754
382
2.094
1,754
2,217
996
3,466
382
3,848
3,213
Chqritoble Artlvlties
NHS commi55ioning
Other incorne
3,007
25
3.007
25
3,596
loo
3,032
3,032
3,696
other trodtng Octivities
Fundraisins event5
. Gr055 income from shops and lottery
236
2.324
236
2.324
251
2,411
2,560
2,560
2,662
Incomefrom Investments
137
137
117
Total income
9.195
382
9,577
9,688
Expendlture on..
Roislngfvnds
FundraisinE Costs
Fundraising events costs
. Shops and lottery expenditure
- Investrnent management costs
1,380
279
2.567
20
1,380
279
2.567
20
1,417
230
2.390
19
4,246
4,246
4,056
Churftqble qctivltie5
Inpatient services
Outpatient services
Community services
Genera dtnical support
1,901
628
1,660
1.106
197
43
iii
2098
671
1,771
I,iii
1,867
593
1,855
1,312
5,295
356
5,651
5,627
Total expenditure
9.541
356
9,897
9,683
Net income/lExpendlturel before
gainslllossesl on
Investments
Net gains on investment5
Pension revaluation gain
13461
26
13201
li
190
12
202
150
14
Net IncomellExpendlturel
11561
26
12
11181
169
23
ST. LUKE'S HOSPICE IHARROW & BRENT) LTD.
CONSOLIDATED STATEMENT OF FINANCIAL AcTIVlEs Icontinuedl
(includin8 an Income and Expenditure Attountl
FOR THE YEAR ENDED 31 DECEMBER 2024
Unrestricted Restrlcted Endowment
funds
Funds
Funds
rooo
£'ooo
£'oc
Total
2024
Total
2023
£'ooo
Notes
Net income
Transfer between funds
11561
26
12
11181
169
Net movement In furKFs
Reconriliation of funds
Total funds brought forward
11561
26
12
11181
169
12,651
228
12,879
12,710
Total fund5 carried forward
12,495
26
240
12,761
12,879
All amounts relate to continuin8 attivities. There are no recoenised 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 byfund for the year ended 31 December 2023 is given in note 19 to the accounts.
The net result of the charl5 own activitie5 ft>r 2024 was a loss of £271,22412023.' £187,745).
The note5 on pages 27 to 44 fomi part ofthese accounts.
24
ST. LUKE'S HOSPICE IHARROW & BRENn LTO.
CHARITY AND GROUP BALANCE SHEETS
AT 31 DECEMBER 2024
Group
Charlty
2024
£'ooo
2023
£'ooo
2024
rooo
2023
£'ooo
Notes
FIXED ASSETS
Tangible assets
Investments
io
li
5,613
4,182
5.806
4,011
5,233
4,182
5,294
4.011
9,795
9.817
9,415
9,305
CURRENT ASSETS
Debtors
Cash at bank and in hand
12
2,466
1.331
2,140
1,717
3,052
983
2,747
1,491
3,797
3,857
4,03S
4,238
CURRENT LIABILlEs
Creditors: amounts falling due
within one year
13
17341
16251
15921
14941
NETCURRENT ASSETS
3,(3
3,232
3,443
3,744
Long term liabilities
(Pènsion deficit)
20
1971
11701
1971
117L¥I
NET ASSETS
14
12,761
12,879
12,761
12,879
Represented by
Unrestricted fund5
Designated funds
General fund
7.324
5,171
7.478
5,173
7,324
5.171
7,478
5,173
12,495
12,651
12,495
12,651
Endowment funds
Restricted funds
240
26
228
240
26
228
15
12,761
12,879
12,761
12,879
The financial statements were approved and authorised for issue by the Board of Trustees on
and signed on their behalf bv..
. .V4i4....2025
M Lustman
Chair of Trustees
The notes on pages 27 to 44 form part of these accounts.
25
ST. LUKE'S HOSPICE (HARROW & BRENT) LTD.
STATEMENT OF CONSOLIDATED CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
2024
2023
rothj
£'ooo
£'ooo
rooo
Cash flow5 from operatin8 activities:
Net cash flow provided by/lused inl operating activities (note Al
14231
17481
Cash flows frorn investing artivities:
Dividends. interest and rents from investments
Pur¢hase of property, plant and equipment
Disposal of investments
Acquisition of investments
Change in investrnent tash
Pension creditor revaluation
136
1571
872
19461
105
1731
117
18841
374
14791
105
1611
Net cash used in investing artivities
37
18281
Change in cash 8nd cash equwalent5 in the reporting period
13861
11,5761
Cash and cash equivalents at the beginning of the reporting
period
1,717
3,293
Cash and cash equivalents at the end of the reporting period
1,331
1.717
A l Rècontlllatlon of net lexpènditurellln¢ome to net cash flow
from operating activities
2024
£'ooo
2023
£'ooo
Net income for the reporting period las per the statement of
11181
169
Adju5tment5 for..
Depreciation charges
Losses/lgainsl on investments
Gain on pension revaluation
Dividends. interest and rents from investments
Decreasellincrea5el in debtors
Increase/ldecreasel in creditors
other
250
12021
183
11501
1141
11171
17651
1611
11361
13261
109
Net cash flow provlded Inllused In) opèrating actlvStles
14231
17481
Analysls of cash and cash equivalents
Cash at bank and In hand
1.331
1,717
Total cash and cash equlvalents
1,331
1,717
ANALYSIS OF NET DEBT
Balance
at 1.1.24
Cash Other
flows
non-ca5h
changes
£'ooo £'ooo
13861
Balante
at
31.12.24
£'ooo
1,331
£'ooo
1,717
Cash and bank
26
ST. WKE'S HOSPICE IHARROW & BRENT) LTD.
NOTES TO THE FINANCIALSTATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ACCOUNTING POLICIES
The princlpal accounting policie5 adopted, judgements and key sources of estimation uncertainty in the preparation
of the financial statements are as follows:
111 Basls of preparatlon
The financial statements have been prepared in accordance with the Statement of Recommended Practice for
Charilies 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 definition of a public benefit entity under FRS 102. Assets and liabilities are initially
recognised at historical c05t or transaction value unless otherwise stated in the relevant accounting policy
notelsl.
1111 Crltlcal accountlng ludgements ènd key Sources of estimation UnrtaInty
In the application of the atcountin8 policies, trustee5 are required to make judgement, estimates, and
assumption5 about the carrying value of assets and liabilities that are not readily apparent from other sources.
The estimates and underlying assumptions are based on historlcal experlence 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
pÈriod 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 statèments and estimates with a si8nificant risk of material adjustrnent 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 trustee5, no a5sumption5 Conrning the future or estimation uncertainty affecting assets or
liabilities at the b313nce Sheet date are likely to result in a material adjustrnent to their car¥ying amounts in the
next finantial year.
liiil Financial instruments
Basic financial instruments are Initially recoÉnised at transaction value and subsequently measured at arnortised
costs with the exception of investments which are held at fair value. Financial assets held amortised cost
cornprise cash at bank and in hand. together with trade and other debttsrs. A specific provision is mède for debts
for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held ill instant access bank
accounts and used as working capital. Financial liabilities held ai amortlsed cost comprise all creditors except
soaal security and other taxe5 and provisions.
livl Preparation of accounts on a golng concern basls
The trustees consider there are no material uncertainties about the charity's ability to continue as a going concern.
The review of our financi81 position, reserves levels and future plan5 gives trustee5 confidence the charity remain5
a going concern forthe foreseeable future.
Iv) Con5011datlon
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 Artivities is not presented for the charity alone as permitted by the Companies Act 2006 and Charities
SORP.
27
Ivll IoMe
Income from donations, legacies and grants are recognised where there is entitlernent, probability of reIpt and
the amount can be measured with sufficient reliability. Donations include related gift aid income.
The Shops company acts as agent to sell item5 donated with a gift ald declaration and to pass the resulbng cash
donations to the Hospice rather than record them as turnover within the Shop5 Company. The Hospice also receives
the gift aid claimed on these donations.
Legacie5 are included when thè Hospicè bocornes 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 valuati(>n, an
estirnate 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 duringthe year.
The value of services provided by volunteers 15 not incorporated In these flnanclal staternents. Further detail of the
substantial contribution by volunteers can be found in the Report of the Trustee5.
Ivlll Expendlture
Expenditure is recognised when a liability is incurred. It includes VAT where this is not recoverable.
Expenditureon raisingfunds is the c05t5 incurred in attracting donation income. organisingand mana8ingfundraisin8
events, and the costs incurred in trading activtties which raise funds.
Charitable activities include the Hospice care services offered to inpatient5, day care patients, those receiving H05pice
services in their own homes, and their carers and familie5. There are a150 a range of clinical and other services which
apply to 311 these forms of Hospi care. These costs include both the direct costs and support costs relating to these
Support costs include central funrtions and have been allocated to activity c05t 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 constitutlonal and statutory requirements. These have been allocated to activity Costs on the
same basis a5 SUPPOrt Costs.
Ivllll Tangiblefixed assets
All assets acquired costing more than £2,500 are capitalised.
Leasehold propertie5
$5ets acquired prior to 2016- over the term of the lease
assets acquired after 2016-shorter of 5 years orthe remaining term of the lease
Fixtures and equipment
20%
Motor vehicles
20%
IT equiprnent and systems 20%
The freehold property is not depreciated as the amount of depreciation is considered to be ImmaterS31.
Tangible fixed assets are held at C05t and (except for the freehold propertyl depreciated on a 5trai8ht line basi5 over
their estlmated useful Iwes as follows.
Investments
Investments are initially recognised at their transaction cost and subsequently valued at fair value at the 8alance
Sheet date, unless falr value cannot be measured reliably in which case it is measured at cost less impairment.
Investment gain5 and 105ses, whether realised or unreali5ed. are comblned and shown in the heading 'Net
gainslllossesl on inve5tmenW in the Statement of Financial Activities.
28
ST. LUKE'S HOSPICE IHARROW & BRENT) LTD.
NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
Funds
General funds are unrestricted funds whlch a available for use at the discretion of the Trustee5 in furtherance of
the 8eneral objectwes of the charity and which have not been designated for other purposes.
Designated fvnds comprise unrestrlcted 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 nores to the
financial statements.
Penslon5
The Group currently offers a qualifying defined contribution pension scheme to all staff. In addition the Group is
Direction Employer under the NHS Scheme.
National Health Servlce Superannuatlon scheme
This is a statutory superannuation scheme as defined in Section 6.12111 Income and Corporation taxes Act 1988.
which has no invested funds. Contribution by employers (currently 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
membÈr5 of the NHS scheme in previous employment under the dispensation rules. The accountin8 char8e
represents the ernployer's contribution5 for the period.
Deflned Contrlbutlon Scheme IPenslons Trust)
With effect from l May 2015 the group è150 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 char8e
represents contributions payable under the scheme by the group. There is no Ilablllty under the scheme other than
the payment of those contributions.
Ixlll TaxatSon
No tax 15 payable due to the charitable status of the parent cornpany. Taxable profits generated by the trading
subsldlary are transferred to the parent company underglft aid.
Ixiiil Leases
Operating lease rentals are charged to the Statement of Financial Activities over the period of the leasè.
Ixivl Legal status
The tharitable company is limited by Guarantee and does not have any share capital.
Employee benefTrt5
Short term benefits including hollday pay are recognised as an expense in the period in which the Servi ls received.
Tèrmination bènefit5 are accoted for on an actrual basis and in line with FRS 102.
Ixvll Debtor5
Trade and other debtors are recognised at the settlement amount due after any trade di5COUnt 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 includes cash and short term highly liquid investments.
Ixllil Creditors and provi5ion5
Creditors and provisions are recognised where the charity has a present obligatlon resLsltlng 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.
29
ST. LUKE'S HOSPICE (HARROW & BRENT) LTD.
NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
OONATIONS- 2024
Unrestrlcted
funds
£,0
Restrlcted
funds
£'ooo
Totsl
2024
£'o
Total
2023
£'ooo
Individual donation5
In memoriam donations
Community groups
Trust fund donations
Corporate donations
Major Donors
Gift aid
Donations & gift aid from sale of goc*ds
in our shops
215
202
ioi
34
115
131
146
768
24
239
205
102
367
123
144
146
768
251
185
137
523
ioi
65
71
884
333
13
1.712
382
2.094
2,217
Fundraising evellts in 2024 raised £236,05212023.. £251,257).
DONATIONS- 2023
Unrestrlcted
lunds
£'ooo
Restrirted
ftsnds
£'ooo
Total
2023
£'ooo
Individual donations
In memoriam donation5
Community groups
Trust fund donations
Corporate donations
Major Donors
Gift aid
Donations & gift aid from sale of goods
in our shops
234
181
126
135
ioi
52
71
17
251
185
137
523
ioi
65
71
884
li
388
13
1.784
433
2,217
LEGACIES
£1,753,661 ha5 been retognised from legaceS for 202412023.. £995,627) using the H05pice's accounting policy and
principles of lil Entitlement exists,. lill receipt is probable,. and liiil Ihe amount 15 measurable. Where there 15 any
uncertalnty regarding any of those principles, or the legacy could be contested, these have not been Included in our
accounts.
30
ST. LUKE'S HOSPICE IHARROW & BRENT) LTO.
NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
INCOME AND EXPENDrruRE FROM SHOPS AND LOTtERY
The Charity own5 the entire share capital of St Luke's Hospi IHarrow & Brent) Chaiity Shops Limlted. a company
registered in England and Wales, which operates charity shops in support of the H05pice funding. The subsidiary
transfers to the Hospice under gift aid an amount not less than its taxable profits.
A summary of the trading $vIt5 of the subsidiary is shown below. Atjdited accounts have been prepared In respect of
the trading period for the year ended 31 December 2024.
Total
2024
£'ooo
Total
2023
£'ooo
Turnover
Income from lottery
Government Érants
2,060
249
15
2,158
253
2,324
2,411
Cost of sale of purchased good5
Administration expenses
Lottery expenditure and prizes
2,081
90
1,960
Gross dirett expenditure of shops and lottery
2.171
2.054
Net direct income from shops and lotterv
Lease costs relating to shops owned by Charity
Donations of goods under gift aid
Lottery Prizes donated by Players
153
1661
659
io
357
1661
707
14
Contribution generated by Charity Shops Ltd
756
1,012
31
ST. LUKE'S HOSPICE (HARROW & BRENTI LTD.
NOTES TO THE FINANCIAL STATEMENTS Icontinuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
CHARITABLE AcfiviTIES- 2024
Unrestrlcted
funds
£'o
Restricted
fund5
£'thJo
Totsl
2024
£'o
Total
2023
go]
NHS commi55ioning income
3.007
3,CK)7
3,596
3,007
3.(K)7
3,596
Other funding
25
25
loo
3,032
3,032
3,696
NHS commissioning income in 2023 includes fundin8 to deliver Fast Track Brokerage of Care. The current contract
runs to September 2025.
CHARITABLE ACTIVITIES- 2023
Unrestrlcted
funds
£'ooo
Restrirted
funds
Total
2023
eooo
NHS commlssioning income
Other funding
3,596
3.596
loo
3,696
3,696
NET IEXPENDITUREIIINCOME
Total
2024
vooo
Total
2023
£'ooo
Net income is stated after Charging..
Depreciation
Auditor's remuneration
Other fees payable to auditors
Operating lease rental
250
27
15
616
183
18
12
525
Ln v o
mo
Illt
r4 ry) O
li
mmv
5112
Ill
* * c
its r
00
&n
Lo
thoo)Nry
m trI
u) m co Ln rrt
ci o o
Lty W Lfj l Li I
v) O U LLL ¥ O
w* tL V I
U)
mrwNrn
O MCO r
rf) to o
O) N 00
torn o
IEI
000
v) w Z Li I <
ST. LUKE'S HOSPICE (HARROW & BRENT) LTD.
NOTES TO THE FINANCIALSTATEMENTS Icontlnuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
STAFFCOSTSAND NUMBERS
Total
2024
£'ooo
Total
2023
£'o
Salaries and wa8e5
Social 5ecuritycost5
Pension costs
5,052
486
324
4,930
470
330
Total
5,862
5.730
Average nurnber of employees (full tlme equivalents)
Hospice
Shops
79
43
82
49
122
131
There were on average 143 people employed12023- 1521 full and part time. The employees were supported by
521 unpaid volunteers during the year12023.. 4971.
Penslon costs Include an amount of £31,849 1202 - £32,1911 paid in respert of death In service cover for
employees of the companv.
Ex Gratia payments made during the year were £13,10812023- £14.1691.
The total remuneration for KÈY Management Pèrsonnel included in staff costs above is £540,56912023.' £546,711).
The number of staff wlth remuneration in excess of £60,000 were as follows..
2024
2023
£60,000- £70,000
£70,000- £80,000
£80,000- £90,000
£90,0(X)- £ioo,tK)O
£iOO,CK>O- £iiO,000
TRUSTEES
None of the trustees received any remuneration or benefits in kind from the charitable companyl2023= Nill.
Trustees did not claim any expenses on behalf of the tharityduringthe year12023'.Nill.
Leasehold
propertles
£'ooo
TANGIBLE FIXED ASSErs
Freehold
propertles
£'ooo
xtures &
equlpment
£'ooo
Motor
vehlcles
£'ooo
Totsl
£'o
GroLbP
Opening balance
Additions
Disposals
4,932
1,194
573
54
li
6,710
57
(lli
C105ing balance
4,932
920
619
6,471
Depreclatlon
Opening balance
Charge for the year
Disposa15
682
135
211
115
li
904
250
ClosinB balance
540
318
858
Net Book Value
At 31 December 2024
4.932
380
301
5,613
At 31 Decernber 2023
4,932
512
362
5,806
35
. LUKE'S HOSPICE (HARROW & BRENT) LTD.
NOTES TOTHE FINANCIALSTATEMENTS Icontinuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
Freehold
propertles
rooo
Leasehold
propertie5
£'ooo
Fixtures &
equipment
vooo
Motor
vèhides
£'ooo
Totsl
Charity
Cost
Opening balan
Additions
Disposals
4.932
33
563
54
5.528
1331
1331
Closing balance
4,932
617
5,549
Depreciation
Opening balance
Charge forthe year
Disposals
33
201
115
233
115
1331
1331
C105in8 balance
316
316
Net Book Value
At 31 December 2C124
4,932
301
5.233
At 31 December 2023
4,932
362
5,294
Freehold propertie5 Otherwise represents the acquisition and conversion costs of Kenton Grange between 1992
and 2002 shown at historic cost and the costs of building the WoodgranÉe Centre completed in 2015.
ii.
INVESTMENTS
2024
£'ooo
2023
£'ooo
Market value at I january 2024
Addltlons
Disposals
Realised and unrealised gain5
Movement in investment cash
4.011
946
18721
202
11051
3,861
479
13741
150
11051
Market value at 31 December 2024
4.182
4,011
12.
DEBTORS.. amounts falllng due with one
year
Group
Charity
2024
£'ooo
2023
£'oc
2024
£'ooo
2023
Trade debtors
Other debtor5
Prepayments and accrued income
Amounts owed by subsidiary undertaking
179
141
2.146
179
60
77
1,731
879
134
1,946
1,931
902
2,466
2,140
3,052
2.747
36
ST. LUKE'S HOSPICE (HARROW & BRENT) LTD.
NOTES TO THE FINANCIAL STATEMENTS Icontlnuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
13 CREDITORS: amountsfallin8 duè within one year
Group
Charlty
2024
£'ooo
2024
2023
£,0
2023
£'o
Trade creditors
Taxation and social security
Accru315 and deferred income
209
170
355
170
175
280
156
139
297
155
142
197
734
625
592
494
14 ANALYSIS OF NET ASSEfs BEEN FUNDS
GROLIP- 2024
Unrestricted fund5
General
Designated
£'o
£'ooo
Endowment
Funds
£.0
Restrlcted
Funds
£'ooo
Total
2024
£'o
Tangible fixed assets
Investments
Net current assets
Long term liabilities
5,613
1,411
300
5.613
4.182
3.063
1971
2,531
2,737
1971
240
26
Net assets
5,171
7,324
240
26
12.761
ANALYSIS OF NET ASSETS BETWEEN FUNDS
GROUP- 2023
Unrestrlcted funds
General
Designated
rooo
£'o
Endowment
Funds
£,0
Restrlcted
Funds
Total
2023
£'ooo
Tangible fixed assets
Investments
Net current aS5et5
Lon8 term liabilities
5.806
1,372
3CN)
5,806
4.011
3,232
11701
2.411
2,932
11701
228
Net assets
5.173
7,478
228
12,879
ANALYSIS OF NET ASSETS BETWEEN FUNDS
CHARITY- 2024
Unrestrirted funds
General
Deslgnated
£,0)
Endowmènt
Funds
£.0
Restrkted
Funds
Tots
2024
Tangible fixed assets
Investment5
Net current assets/lliabilitiesl
Long term liabilities
5,233
1,411
680
5.233
4,182
3,443
1971
2,531
2.737
1971
240
26
Net 355ets
5,171
7,324
240
26
12,761
37
5T. LUKE'S HOSPICE (HARROW & BRENT) LTD.
NOTES TO THE FINANCIAL STATEMENTS Icontinuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
ANALYSIS OF NET ASSETS BETWEEN FUNDS Icontlnuedl
CHARITY- 2023
Unrestrirted funds
General
Deslgt)ated
£'ooo
£'ooo
Endowment
Funds
£'o
Restricted
Funds
vooo
Total
2023
ro)
Tangible fixed assets
Investment5
Net current assetsllliabilitiesl
Long term liabilitles
5,294
1,372
812
5,294
4,011
3,744
11701
2,411
2,932
11701
228
Net assets
5,173
7,478
228
12,879
IS. FUNDS-2024
Transferl
Penslon
Surplus
£'ooo
Opening
Balance
£'oLMJ
Investment
GainslLosses
gooo
Closing
Balance
£'ooo
Income
£'ooo
Expendlture
£'ooo
Restrirted fund5
Inpatient care funds
Outpatient care funds
Community care funds
General Clinical funds
Capital funds
Fundraising Programme
196
63
112
11961
1631
1921
20
Total restrlcted funds
382
13561
26
Endowment funds
Alice Wisbey Capital Fund
D D McPhall
25
203
26
214
li
Total endowment funds
228
12
240
Unrestricted fund5
Designated fixed
fund
Designated shops assets
fund
DesiEnated risk
management fund
Pension liability reserve
asset
5,294
1611
5,233
512
11321
380
1,372
300
39
1.411
3(K)
Totsl deslgnated funds
7.478
39
11931
7,324
Unrestrlcted funds
General charitable funds
5.173
6,872
17.3711
Isi
346
5,171
General non-charitable
tradlng funds
2.324
12.1711
11531
Totsl general funds
5,173
9,196
19,5421
151
193
5.171
Total Unrestrict funds
12,651
9,196
19.5421
190
12,495
Total funds
12,879
9,578
19.8981
202
12,761
38
ST. LUKE'S HOSPICE (HARROW & BRENT) LTD.
NOTESTO THE FINANCIAL STATEMENTS lcontinuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
15.
FUNDS Itontlnuedl- 2023
Opening
balante
£'ooo
Investment
Galns
£'wo
Closing
Balance
£'ooo
Income
£'ooo
Expendlture
£'o
Transfers
£'o
Restricted funds
Inpatient care funds
Outpatlent care funds
Community care funds
General Clinical funds
Capital funds
Fundralsing Programme
146
156
112
20
11461
11561
11121
1201
76
1761
Total restrirted fvnds
76
433
14331
1761
Endowment funds
Allce Wisbey Capltal Fund
D D McPhail
24
190
25
203
13
Total endowment funds
214
14
228
Unrestrlrted funds
Designated fixed a55et fund
Designated shops assets
fund
Designated risk
management fund
Pension liability reserve
5,065
41
229
471
5,294
512
1,498
300
11261
1,372
300
Total des5gnated funds
6,904
11261
700
7.478
Unrestricted funds
General charitable fund5
5,516
6,847
17,1861
264
12681
5,173
General non-charitable
trading funds
2.411
12.0541
13571
Total general funds
5,516
9,258
19,2401
264
16251
5,173
Total unrestrlcted funds
12.420
9.258
19.2401
138
76
12.651
Total funds
12.710
9.691
19.6731
12,879
39
5T. LUKE'S HOSPICE IHARROW & BRENTI LTD.
NOTESTO THE FINANCIAL STATEMENTS Icontlnuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
15.
FUNDS Icontinuedl
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 anv
future buy-out of the liability.
The late Mrs Alice Wisbey made a bequest to the Hospi with the instruction that the income therefrom should
be applied for the comfort of the nurslng staff. This is spllt between Income and Capital funds.
The restricted funds represent grants and donations received, from Trusts and individuals, where the USÈ of the
funds was restricted to a specific purpose by the donor. These funds have included contributions toward5 the cost
of our Inpatient unit, Day care services, Community and Homecare services, to the provlslon of complementary
therapies and a number of other items.
The D O McPhail Charitable Settlement originally gave E150.000 as an endowrnent fund. No Instructions were
8iven 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 underlyin8 invèstment.
The designated flxed asset fund represents the net book value of the Hospice's flxed assets. It has been set up to
assist in identifying funds which are not free funds. Similarly, the designated shop5 35set fund has been set up to
Identify fixed assets of the shops company not covered by their working capital.
The designated risk management fund is intended to cover unexpected Costs or income shortfalls, ensuringthe long-
term sustainability of the Hospice. The balance in this fund a5 at 31 Dember 2024 was £1,411k12023 - £1,371kl
m05t of which is manaeed by Rathbtrnes. our investrnent manager.
The deficit arising out of the operating activities during the year resulted in the decrease In unrestricted general
charitable funds of £700k12023- increase £231kl.
The general funds represent the unrestricted funds of the group and are therefore "free reserves".
40
sr. LUKE'S HOSPICE (HARROW & BRENTI LTD.
NOTESTO THE FINANCIAL STATEMENTS Icontlnuedl
FOR THEYEAR ENDED 310ECEMBER 2024
16. OPERATING LEASE COMMITMENTS
The group has the followlng total comrnitments under non-cancellable operating leases..
Group
Charitv
2024
£'ooo
2024
£'ooo
2023
2023
£'ooo
Amounts duè..
Within l year
Within two to five year5
After five years
434
1,191
666
501
1,189
802
66
158
io
69
206
31
2.291
2,492
234
306
17. CAPITAL COMMITMENrs
The group has committed to a c05t of E60k feasibility study on the premise5 of Kenton Gran8e. Based on the
feasibility report capital refurbishment is likely to take place in the yèar 2025.12023.. none).
18. RELATED PARTY TRANSACTIONS
During the year, Trustees, Executive Tèarn membèrs and their close family members donated £325 and PUTchasèd
£208 worth of Lottery tickets from the Hospice12023.' £1,120). There were no other transactions with related parties
during the year12023.' nonel.
19. STATEMENT OF FINANCIAL AcTIVlEs IN THE PREVIOUS YEAR12023
Unrestricted Re5trirted
funds
Fund5
£'ooo
£'ooo
Endowment
Funds
£'o
Total
2023
E'ooo
Income from:
Donotlons und legucles
Donations
Le88cies
1,784
996
433
2,217
996
2,780
433
3,213
Chtsrituble Activities
NHS commissionin
Other income
3.596
loo
3,596
loo
3,696
3.696
Other trading activitie5
Fundraising events
Gross income from shops and lottery
251
2,411
251
2,411
2.662
2,662
Investments
117
117
Total Income
9.255
433
9,688
41
ST. LUKE'S HOSPICE (HARROW & BRENT) LTD.
NOTES TOTHE FINANCIAL STATEMENTS Icontlnuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
19.
STATEMENT OF FINANCIAL ACTIVITIES IN THE PREVIOUS YEAR Icontinuedl
Unrestricted Restricted
funds
Funds
£'o
Endowment
Funds
£'ooo
Total
2023
rooo
Expenditure on:
Rulslngfunds
Fundraising costs
Fundraising events costs
Shops and lottery expenditure
Investment rnanagement Costs
1,417
230
2,390
19
1,417
230
2,390
19
4,056
4.056
Charltoble tsctlvltles
Inpatient Services
Day care services
Homecare services
Overall clinical support
1,721
437
1,743
1,293
146
156
112
19
1,867
593
1,855
1,312
5,194
433
5,627
Total expendlture
9,250
433
9,683
Net Income before
8ains on investments
Net Ilossesl/gains on investments
Pension revaluation gain
150
14
150
14
Net Income
169
169
42
ST. LUKE'S HOSPICE (HARROW & BRENTI LTD.
NOTESTO THE FINANCIAL STATEMENTS Icontlnuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
20. THE CAREER AVERAGE REVALUED EARNING SCHEME (THE PENSIONS TRUST)
Up until 1st May 2015. the group offered a multi-employer pension scheme provldlng a defined benefit Icareer
averagel pension for members.
The company participated in the scheme, a multi-employer scheme which provides benefits to some 36 non-
a550ciated 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 deflned benefit scheme. Therefore, it accounts for
the scheme as a defined contribution scheme.
The scherne is subject to the funding legislation outllned in the Pensions Act 2004 which came into force on 30
December 2005. This, together with documents issued by the Pensions 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. obligatlons If thoseemployers are unable to meet thelr share of the scheme deficit following
withdrawal from the Scheme. Participatin8 ernployers 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 2022. This valuation showed assets of
£49.6m. liabilities of £57.Im and a deficit of £7.5m. To eliminate this fundin8 5hortfèll, the Pension Trustee asked
the participatinE ernployers to pay additional contributions to fund the 5£heme deficit of £1.67m. The recovery plan
contributions are allocated to each participating employer in line with their estimated share of the Scheme liabilities
and increase by 3% per annum on I, April each year. It was anticipated that the deficit would be cleared by 31"
March 2027.
During 2024, St Luke'5 Contributed £72,229 towards the deficit12023 - £69,272).
Note that the previous valuation was carried out with an effective date of 30 September 2019. Thi5 valuation
showed assets of £79m. liabilities of £93.9m and a deficit of £14.9m. To eliminate this funding shorttall, the Pension
Trustee asked the participating employer5 to pay additional contributions to fund the scheme deficit. Annual deficit
contributions by participating employers then total £1.53m pa due to the annual 3% increases, and the defidl to be
cleared by 3U September 2027.
Where the scheme is in deficit and where the Company ha5 agreed to a deficit funding arrangement the companv
recognises a liability for this obliEation. The amount retognised is the net present value of the deficit reduction
¢ontributi(>ns payable under the a8reement that relates to the deficit. The present value is cal¢ulatÈd using the
discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance c05t.
PRESE VALUES OF PROVISION
31 December 2024
I£OOOsl
31 De¢ember 2023
IfOOOs1
Present value of provision
162
226
43
ST. LUKE'S HOSPICE (HARROW & BRENT) LTD.
Icontinuedl
FOR THE YEAR ENDED 31 DECEMBER 2024
20.
THE CAREER AVERAGE REVALUED EARNING SCHEME IPENSIONSTRUSn Icontlnuedl
RECONaLIATION OF OPENING AND CLOSING PROVISIONS
2024
£'ooo
226
2023
E'IXIO
310
14
1691
Provision at start of period
Unwinding of the discount factor (interest expensel
Deficit contribution paid
Remeasurements impact of any change in assumptions
Remea5urernents- amendments to the contribution schedule
1731
1301
Provlslon at end of period
162
226
2024
£'ooo
2023
£'ooo
Amount5 due within one year
Amount5 due after one year
74
97
72
170
171
242
includes defined contribution schemes and future seNice contribution5 li.e. excluding any deficit reduction
payment51 to defined benefit schemes which are treated as defined contribution schernes.
ASSUMPTIONS
31 Dember 2024
% per annum
31 Dember 2023
% per annum
Rate of dlscount
4.96
4.74
The discount rates shown above are the equivalent single discount rates which, when used to di5COUnt the future
recovery plan contributions due. would give the same resuh5 a5 Using a fullAA corporate bond yield curveto discount
the same recovery plan contributions.
10. REFERENCE AND ADMINISTRATIVE INFORMATION
Company Number
02141770
Charity Numbgr
298555
Registered Office
Kenton Grange, Kenton Road. Harrow. Middlesex HA3 OYG
Trustees
The Iru5tees, who are also directors under company law, who served during the
year and up to the date of this report were as follows..
MargaTet Luslman (Chair of Trusleesl
Dr Carole Amobi - resigned 241112024
Natalie Butler
Liz Jewitt-cross (Chair of People Committeel-resigned 13103125
Sarah Gigg
Christine Glenn (Chair (rf Remuneration Committee)
Payl Hill (Chair of Finance & Performan Committee)
Sarah Livingston (Chair of Clinical Governance Committeel
Jalin Patel (Chair of Audit & Risk Commilleel
Chandia Radia
Neel Radia
Professor Stephen Spiro Ivlce Chairl
Raj Thakrar
Claire Melia-Tompkins
Kgy management personnel
Chief Executive Officer
Lindsey Bennister
Medical Director
Dr Charles Daniels- resigned 31112124
Director of Clinical Services Claire Porter- appointed 291712024
Director of Opèrations
Fran Deane
Director of Finance
Geethanjali Umaasuthan
Director of People &
Organisalional Development Loma Campbell - resigned 19103125
Director of Fundraising
& Communications
Joanna Pearce
Principal Bankers
Barclays Bank plc, LeiSter LE87 2BB
Auditors
Haysmac LLP, 10 Queen Street Place, London EC4R 1AG
Investment Managers
Ralhbone Investment Management
8 Finsbury Circus. London EC2M 7AZ
Solicitors
Curry Popeck, Devonshire House, 582 Honeypot Lane. Middlesex
HA7 1JS
BDB Pilmans LLP. One Bartholomew Close. London EC1A 7BL
Website
www.sllukes-hos
ice.or
45
St. Luke’s Hospice (Harrow & Brent) Ltd
Draft Audit Findings Report
For the Year Ended 31 December 2024
## Table of Contents
|1.|Introduction and Executive Summary..............................................................................................................1|
|---|---|
|2.|Signifcant audit risks, and other focus areas identifed during audit planning...............................................2|
|3.|Accounting and Audit Matters..........................................................................................................................3|
|4.|Detailed control points.....................................................................................................................................9|
|5.|Emerging issues.............................................................................................................................................13|
## 1. Introduction and Executive Summary
This report summarises our key findings in connection with the audit of the financial statements of St. Luke’s Hospice (Harrow & Brent) Ltd (“the Charity”) and St. Luke’s Hospice (Harrow & Brent) Charity Shops Limited for the year ended 31 December 2024. We would like to thank Geetha Umaasuthan, Rosemary Fagnoni and the finance team for their assistance throughout the audit process.
## **Our audit approach**
Our work was planned and performed in order to issue an audit opinion on the financial statements in accordance with International Standards on Auditing (UK) (“ISAs”) and the terms of our letter of engagement. Our audit approach is a risk-based approach founded on us gaining a thorough understanding of the entity and its business in order to allow us to identify the risks of material misstatement within the financial statements. To do this, we consider both the risk inherent in the financial statements themselves and the control environment in which the entity operates. We then use this assessment to develop an effective and efficient approach to the audit.
## **Limitations**
Our audit procedures, which have been designed to enable us to express an opinion on the financial statements, have included an examination of the transactions and the controls thereon.
Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation.
We have included in this report only those matters that have come to our attention as a result of our normal audit procedures and, consequently, our comments should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made.
## **Status of our work:**
At the time of issuing this report our work remains subject to:
- review of going concern forecasts
- Receipts of post year end management accounts
- Finalisation of accounts
- Receipt of signed letter of representation and completion of post-balance sheet events work (to be performed at the point the accounts are approved).
- St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
1
## 2. Significant audit risks, and other focus areas identified during audit planning
We set out below the significant audit risks identified at the planning stage and the conclusions of our audit work:
|**SIGNIFICANT AUDIT RISK AREA**
**HOW WE ADDRESSED THIS**
**COMMENTARY**|**SIGNIFICANT AUDIT RISK AREA**
**HOW WE ADDRESSED THIS**
**COMMENTARY**|
|---|---|
|**Fraud in revenue recognition**
The risk of intentional improper treatment of income
under UK GAAP.
Having considered the nature of St Luke’s Hospice
(Harrow & Brent) Limited income streams, we consider
that the risk predominantly relates to improper
journals being posted to income.|We have reviewed journals posted to income
codes, both during the year and around the
year-end, for evidence of inappropriate postings.
We have planned and performed specifc tests
to ensure grant and donations income has been
recorded in the correct period and have tested a
sample of transactions around the yearend.
Our review have also included an assessment of
the appropriateness of the recognition of
debtors, accrued income and deferred income.
Our work was satisfactorily completed with no
signifcant matters arising.|
|**Presumed risk of management override**
The risk of misappropriation of assets and the risks of
misrepresentation of fnancial information.|We have considered and reviewed all areas
requiring judgements or estimates in order to
assess the appropriateness of the judgements
and estimates made by management.
We have reviewed and tested journal entries
made in the year, and in particular those made
as part of the year-end fnancial reporting
process. Where necessary we have made
further inquiries regarding any seemingly
inappropriate or unusual journal or other
adjustments.
We have incorporated unpredictability in our
testing procedures.
The audit work in this area was completed
satisfactorily with no material issues arising.|
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
2
## 3. Accounting and Audit Matters
## 3.1 Qualitative aspects of accounting practices and financial reporting
## **i. Key accounting estimates**
Accounting estimates are defined by ISA 540 as monetary amounts for which the measurement, in accordance with the requirements of UK GAAP, is subject to estimation uncertainty. We consider that there are no key accounting estimates affecting St. Luke’s Hospice (Harrow & Brent) Ltd’s financial statements for the current year.
|**SIGNIFICANT ACCOUNTING ESTIMATE &**|**COMMENTARY**|
|---|---|
|**DETAIL**||
|**Depreciation**|The Charity holds fxed assets with a net book value of £5.6m at as at year ended 31 December 2024,|
||which the non-property assets are being depreciated over their expected useful lives on a straight-line|
||basis.|
||As a result there has been a depreciation charge calculated of £250k which has been charged to the|
||SOFA with a corresponding entry being made to the Fixed Assets (Accumulated Depreciation) within|
||the Balance Sheet. Although this amount is immaterial to the fnancial statements, we have reviewed|
||managements’ calculations and ensured they are accurate, for disclosure purposes. No issues were|
||noted on the review of these calculations.|
|**Pension liability**|Before May 2015, the charity participated in the TPT Retirement Solutions – Career Average revalued|
||Earnings (CARE) pension scheme. It is not possible to calculate the charity’s share of the assets and|
||liabilities of the scheme so it has been accounted for as a defned contribution scheme in line with|
||accounting standards. The scheme currently has a defcit, so all employers within the scheme have been
asked to pay additional contributions to the scheme. The defcit which stood at £96k at the year-end was|
||calculated assuming a discount rate of 4.96%.|
||The defcit has been correctly calculated in accordance with the assumed discount rate, which appears|
||reasonable based on past experience and is similar to that used by other organisations in a similar|
||position.|
|**Legacies**|The Charity receives a large number of legacies and as such the recognition of legacy income is|
||considered to be a key accounting estimate due to the estimates involved in determining the|
||amount at the point of recognition. Under the Charity SORP legacy income should be recognised|
|||
3 St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
when the following criteria is met: **Entitlement** – this is usually demonstrated through probate being granted. **Receipt is probable** – for example probate has been granted and there are sufficient assets in the estate to pay out the legacy, conditions attached to legacy are within the control of charity. **Measurement** - the amount due can be reliably estimated.
The charity recognises legacies according to the SORP. During the course of our audit, we identified legacies with a value of £544k which were not accrued for in the 2024 financial statements because the measurement criteria above was not met as the final accounts from the administrators to enable the quantification of entitlement had not been received at year end. On reviewing the supporting information, it was noted that there was a delay in the administrators communicating these to the charity thus these were unknown as at year end.
Since the year end, management has followed-up with the administrators of the pipeline legacies to ascertain whether any new information has been received and therefore the legacies could be reliably estimated for inclusion in the 2024 financial statements. The £544k noted above has therefore been recognized and correct ly accounted for the financial statement.
## **ii. Key judgements**
Management exercises judgement in application of accounting policies while preparing the financial statements. By their nature, judgements are subjective and could be subject to bias, which affects the presentation of the Charity’s performance or financial position. We consider the following key accounting judgements affecting the Charity’s financial statements for the current year.
|**SIGNIFICANT ACCOUNTING JUDGEMENT**|**COMMENTARY**|
|---|---|
|**Freehold property**|As in prior years, the freehold property included within the Charity’s accounts has not been
depreciated. This is on the basis that any depreciation would be immaterial to the accounts and the|
||fair value of the property, including the associated land, exceeds the value recognised in the|
||accounts. The property value within the accounts is £4.9m which included its initial costs plus the|
||two extensions in 2013 and 2014.|
||Based on local area property prices, the size of the property and the associated land the Trustees|
||do not consider the value included in the accounts to be in excess of the fair value. An|
||impairment review is performed annually by the trustees to confrm this which also justifes the|
||non-depreciation policy.|
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
4
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
5
## 3.2 Accounting and audit matters
## **i. Summary of adjusted and unadjusted misstatements Adjusted misstatements**
We agreed adjustments in relation to the following:
- Accrued legacies £544k (debit accrued legacies in debtors, credit income)
- Reversal of excess gift aid accrued £16k (debit income, credit accrued gift aid income in debtors)
- Reclassification of debtors from creditors £65k (debit debtors, credit creditors) (Shops)
## **Non adjusted misstatements**
- Capitalisation of repairs £5k (debit Buildings, credit repairs and maintenance)
- Reclassification of dilapidation provision cost from repairs and maintenance £9k (debit general expenditure, credit repairs and maintenance)
There are no other non-adjusted mistatements other than clearly trivial items.
## **ii. Letter of representation**
International Standards on Auditing require us to obtain written representations from the trustees and directors when you approve the financial statements. The letter contains only standard matters with no additional items specific to the Charity or the Company.
## **iii. Going Concern**
The accounts are prepared on a going concern basis which assumes that the Charity will continue to operate in a similar manner to how it currently operates for the foreseeable future. To continue as a going concern the Charity must have sufficient cash resources to meet the liabilities as they fall due, and we have been provided with your cashflow forecast to support this assertion.
The Charity recorded a deficit in the current year which is a decline form the surplus in the prior year. However, when looking at going concern we have also considered the position in the context of unrestricted funds, timing of cashflows and available levers to the charity. At 31 August 2024, the Charity had total funds of £12.2m of which £5m are unrestricted funds and therefore the trustees’ assessment that the financial statements should be prepared on a going concern basis appears reasonable.
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
6
## **iv. Data analytics**
In addition to our usual audit tests, we have used our data analytics software to interrogate transactions making up the financial statement for the Charity.
We extracted the full transactional listing from your accounting system. By then reconciling on a line-by-line basis the aggregate impact of the transaction made during the period we were able to confirm the completeness of the population. We then used characteristic based data analytics and a multidimension risk scoring logic which analysed every transaction in the population against a set of potential risk identifiers, highlighting the transactions we deemed to pose a heightened risk of fraud, error or misstatement.
The visualisation to the left shows each accounting entry posted during the year on a risk spectrum. Transactions are assigned a score based on the number of identical occurrences of the transaction (vertical axis) and the financial impact that each has on the charity’s financial result (horizontal axis). Categories of transaction which occur infrequently and have a significant impact on the charity’s financial result show in the top left or top right of the chart.
During the period there were a total of 35,883 transactions within St. Luke's Hospice (Harrow & Brent) Ltd.'s and St. Luke’s Hospice (Harrow & Brent) Charity Shops Limited accounting system. When combined, 792 unique general ledger code combinations were found.
A total of 4 combinations were flagged in the highest risk category, being those occurring fewer than 4 times and having a significant impact on reported profit (in red). There were 6 transactions within these combinations.
Upon review of these transactions, we noted that they related to:
- Shop donation
- Payroll
- Accrued income
Transactions of this type are all within the normal course of the
**–** charity’s activities **TEST: Keywords review of transactions where the description felds or general ledger accounts contain keywords**
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
7
**Risk:** Transactions where the description field contains keywords such as “adjustment”, “correction” and “gifts” may be indicative of risk characteristics such as error, correction, or potential fraud.
**Findings:** We noted 468 transactions in the period that contained key words. This is 1% of all transactions (2023: 2%). We reviewed these transactions, which were made throughout the year and noted that the majority related to corrections of postings; for example reallocations between ledger codes and timing corrections to move postings to a different period in the year. The volume of transactions is relatively low nevertheless, we recommend that the finance department review correcting entries posted by individuals to identify potential training requirements.
**Conclusion:** The volume and value of the transactions are very low with no significant issues identified.
## **– Test: Closing Entry review of transactions posted in the last 14 days of the year**
**Risk:** Closing entries include year-end adjustments that are often significant values and only processed on an annual basis therefore risk of management override. We note that due to high values and frequency of journals posted in the final two weeks there is a greater risk of errors going undetected as well as an increased risk of management override.
**Findings:** A total of (1,980 of 7,494) transactions were entered in the last 14 days of the reporting period. We have reviewed a sample of journals posted in the year including a selection of year end journals. We have also reviewed the controls in place for posting and reviewing the journals within the finance team.
**Conclusion:** We have not noted any identified any issues during our work.
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
8
## 4. Detailed control points
During the course of our audit we identify detailed control points that we feel need to be brought to the attention of the Trustees and certain recommendations for improvements and/or corrective action. Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation. The matters and detailed control points that we have identified are graded within the following framework to assist the Trustees in assessing their impact.
|**RATING**|**RATING TYPE**
**CHARACTERISTICS OF RATING TYPE**|
|---|---|
|Signifcant|These fndings are considered to be
signifcant to the management of risk in the
business. The fnding represents a serious
weakness in systems and controls currently
in place or a potentially fundamental control
that has been omitted from the risk
management systems as currently in
operation.
•
Key control omitted
•
Key control not designed or operating efectively, for example as
indicated by multiple exceptions found during our review work
•
Evidence of override of controls in place with signifcant or potentially
fraudulent outcomes
•
Non-compliance with laws and regulations
Important fndings that should be reviewed
by management, pending corrective action
and or updates to systems and controls.
•
Errors and exceptions noted during our testing that had corrected
retrospectively during the yemnmar by management.
•
Potential improvement to existing control noted
•
Possibility for override of controls exists
•
Our review noted numerous exceptions but not in key controls
Findings that identify non-compliance with
established systems and controls.
•
Minor control weakness, for example limited exceptions noted during our
review work
Items requiring no immediate action but
which may be of interest to management or
best practice advice.
•
Information for department management
•
Control operating but scope for efciency and/or efectiveness improvements
exist
•
Control operating but not necessarily in accordance with best practice
•
Recent or anticipated developments maynecessitate new controls.|
|Important||
|Limited||
|Advisory||
9 St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
We wish to bring the following matters to your attention which arise from the current year audit as well as the latest status of outstanding issues arising from previous year audits
## **Current year:**
|ISSUE:|Capitalisation of repairs and maintenance|Capitalisation of repairs and maintenance|CONTROL POINT
RATING:|Limited|
|---|---|---|---|---|
|**Risk**||**Our comments &proposals**|**Management response**||
|During our testing, we noted that there a few
transactions that were expensed to repairs and
maintenance which met the criteria to capitalised.
There is a risk that expenses will be overstated
and assets understated in the fnancial statements||We recommend that management exercise
more oversight over the recording of repairs
and maintenance costs to ensure those costs
that meet the criteria are capitalised.|One invoice is still in dispute, and we have not capitalized
and we are expecting a refund.
One invoice relating to £3k garden furniture could have
been capitalized. We will train the budget holders and
accounting staf to allocate costs correctly.||
|ISSUE:|Record keeping|Record keeping|CONTROL POINT
RATING:|Advisor
y|
|---|---|---|---|---|
|**Risk**||**Our comments &proposals**|**Management response**||
|During our testing, we requested receipts for
Rayners Lane but we could not obtain these as the
shops closed. We understand the paperwork for
the shop which was sent to the warehouse could
not be obtained.||We suggest that management should ensure
that there is sufcient and appropriate records
maintained for all transactions in the fnancial
statements.|We have scheduled a fnancial training session for the 2nd
quarter to ensure that both shop management and staf
are fully informed about regulations and their
responsibilities regarding record keeping.||
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
10
|ISSUE:|Pinner & North harrow shop visits|Pinner & North harrow shop visits|CONTROL POINT
RATING:|Limited|
|---|---|---|---|---|
|**Risk**||**Our comments &proposals**|**Management response**||
|Two people are not present when the till
takings are counted, and the counting records are
not signed and dated.||We recommend that two people are present,
where possible, to count till takings.|We will implement a recommendation system in the shops,
where two staf members/ personal are available for
closing the store.||
## **Prior year:**
|ISSUE:|Fixed asset register|Fixed asset register|CONTROL POINT
RATING:|Advisor
y|
|---|---|---|---|---|
|**Risk**||**Our comments &proposals**|**Management response**||
|During the audit we noted that the charity shops
fxed asset register was not reconciling with the
TB.||The fxed asset register should be agreed to
the TB on a timely basis and agreed to the
fnancial statements before the
commencement of the audit.|2024 update:
**_Now resolved._**||
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
11
|ISSUE:|Donorfex reconciliation with sage|Donorfex reconciliation with sage|CONTROL POINT
RATING:|Advisor
y|
|---|---|---|---|---|
|**Risk**||**Our comments &proposals**|**Management response**||
|During the audit we noted that Donorfex is not
being reconciled with Sage for all voluntary
income streams. This may lead to incompleteness
of income if there is nothing outside of the
accounting system to confrm all income has been
recorded.||We recommend that management should
consider performing monthly reconciliations
between Donorfex and Sage for all voluntary
income streams to ensure completeness of
income recorded in the fnancial statements.|2024 update:
**_Resolved_**||
|ISSUE:|Reconciliation|Reconciliation|CONTROL POINT
RATING:|Important|
|---|---|---|---|---|
|**Risk**||**Our comments &proposals**|**Management response**||
|As noted above, there were several reconciliations
that had not been carried out at the start of the
audit - for instance payroll, VAT, and creditors.
These delays made our audit less efcient and
more time consuming.||These reconciliations should be carried out on
a regular basis and any diferences followed up
and investigated.|2024 update:
**_Resolved_**||
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
12
## 5. Emerging issues
## Charity reporting and governance matters
## **Collaborative working and mergers: an introduction (CC34)**
Following the changes as a result of the implementation of Charities Act 2022, the Charity Commission has produced new guidance on working in collaboration with other charities either as:
- working as two separate organisations on a joint project
- merging two legally separate charities to form one charity
The guidance considered in more detail the definitions of the above, key thoughts, legal considerations, practical implications in terms of when to get the Commission involved and different structures. The guidance can be found here.
## **Charity Commission guidance for trustees on investment policies**
The Charity Commission has updated its guidance on charities and investments following its call for information and consultation on financial investments. The updated guidance reflects the judgment of the Chancery Division in Butler-Sloss & Ors v The Charity Commission for England and Wales & Anor, and is known as CC14.
As a reminder, the verdict clarifies that where trustees are of the reasonable view that particular investments (or classes of investments) potentially conflict with the charitable purposes, the trustees have the discretion to exclude such investments. They should exercise that discretion by reasonably balancing all relevant factors including the likelihood and seriousness of the potential conflict, and the likelihood and seriousness of any potential financial effect from the exclusion of such investments.
The guidance can be found here.
## **Updated guidance on decision-making for charity trustees (CC27)**
In September 2024 the Charity Commission published updates to its guidance on making trustee decisions. The aim of these updates is to make the guidance more accessible and easier to use, however the backbone of the guidance remains the seven principles developed by the courts when they reviewed decisions made by trustees, which we have set out below.
When making decisions, trustees must:
- act within their powers
- act in good faith
- be sufficiently informed
- take into account all relevant factors
- identify and disregard any irrelevant factors
- manage conflicts of interest
- ~~ensure their decision is within the range of decisions that a reasonable trustee body could make~~
- St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
13
The revised guidance can be found here.
## **Updated guidance on “improving your charity’s finances” (CC12)**
In September 2024 the Charity Commission published updates to its guidance on “improving your charity’s finance”. These updates are aimed at making the guidance more accessible and provide advice on actions that can protect charities against financial difficulties, as well as understanding what to do if a charity is insolvent, or at risk of insolvency.
The updated guidance, which is separated depending on the legal structure of the charity, can be found here.
## **Charity Commission guidance for charity meetings**
The charity commission guidance on charity meetings was also updated in July 2024 to make it more accessible and easier to use. The guidance covers how meetings should be planned, run and recorded, and sets out the ways in which meetings can be held (face to face, virtual or hybrid). The guidance emphasises that you must check your governing document to ensure that you are acting in accordance with its rules about meetings, to ensure that decisions are not invalidated.
The guidance can be found here.
## **Charity Commission guidance on appointment of trustees**
The Charity Commission updated its guidance on recruitment of trustees in March 2024, surrounding when the Commission can confirm trustee appointments. Where an appointment is defective, or potentially defective, the Commission can confirm the appointment by making an order where the person consents to their appointment. Whilst making the order, the Commission can also validate a past act of the person concerned. This will only be undertaken where the charity is unable to confirm the appointment or validate the past act itself via its governing document, the Trustee Act 1925 or the Companies Act 2006. Further guidance can be found here.
## **Charity Commission guidance on Charity Banking**
In July 2024 the charity commission published information on charity banking and the support available to charities who are struggling with accessing adequate banking services. This follows on from an open letter which the Commission wrote to the Chief Executives of UK banks, requesting their urgent action on issues that charities are facing with their banks which include:
- Having accounts closed or suspended suddenly for long periods of time
- Facing a reduction in bespoke banking services
- Experiencing poor customer service and administrative delays
- Finding that online banking is not designed to match the way charities operate
- The guidance can be found here.
## **Volunteers**
The Social Purposes sector relies heavily on its volunteers. Typically, these are unpaid and may in certain circumstances be paid out of pocket expenses. This is usually limited to food, drink, travel or any equipment they need to buy to undertake their duties. Normally, there are no employment taxes implications for reimbursement of these out of pocket expenses as long as they are reasonable.
14 St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
If the volunteers are paid expenses that do more than reimburse the costs incurred then HMRC may contend that they are receiving remuneration for their services. In which case, the payments will be taxable as employment income if it can be shown that they either hold an office or employment. If they do not hold an office or employment, the payments may be Miscellaneous Income.
In a recent Employment tribunal case M Groom v Maritime and Coast Guard Agency, the volunteer was judged to be a worker which confers employment rights such as holiday pay, National Minimum/Living wage etc. It is therefore imperative that the correct policies, controls and governance are in place to avoid any possible successful employment status challenge by HMRC.
## Financial Reporting
## **Financial reporting framework**
## **UK GAAP Developments – FRS 102**
Following the recent Periodic Review and other amendments to UK and Ireland accounting standards, the Financial Reporting Council (FRC) has issued now revised versions of FRSs 100, 101, 102, 103, 104 and 105. The FRC has also revised the “Overview of the financial reporting framework”.
The changes to FRS 102 include the significant revisions made to leasing and revenue recognition which arose from the Periodic Review 2024. Most of these amendments are effective for accounting periods beginning on or after 1 January 2026, although those changes that relate to “supplier finance arrangements” have an earlier effective date of accounting periods beginning on or after 1 January 2025.
These amendments seek to provide greater consistency and more (but not total) alignment to international accounting standards including:
- A new 5 step model for revenue recognition, which is aligned to IFRS 15: Revenue from Contracts with Customers, (with some simplifications);
- On balance sheet lease accounting for lessees, aligned to IFRS 16: Leases, (with certain practical exemptions); and
- Other modifications to fair value measurement, uncertain tax positions, business combinations, and a revised Section 2 aligned with IASB’s Conceptual Framework.
The effective date for most amendments is periods beginning on or after 1 January 2026, with early adoption permitted. The new standard sets out the requirements for the restatement of comparative amounts. There are choices available in some areas of change but others are more prescriptive so you will need to take care to ensure that you have complied with each relevant requirement and made the appropriate disclosures.
The transition to the new requirements will take careful planning for many organisations currently following FRS 102. For instance, many organisations will see leases (and debt) hit their balance sheets for the first time. For some this will seem strange and for most will require careful planning to ensure, amongst other things, that all leases are captured, the financial effects are known, effects on reporting requirements e.g covenants are understood. The new accounting standards are available on the FRC website here. Note that despite the effective dates in the future, the new versions are described as the “current edition” with versions that are still in use described as “superseded editions”.
With the changes to FRS 102, there will also be changes to the Charities SORP, which had its last major revision in 2015 along with amendments in 2019. We are expecting its release in 2025, with an effective date from 1 January 2026 in line with the changes in FRS 102. Along with the changes noted above, we are expecting it to also introduce a third tier of charity as well as revisiting the allocation of overhead expenditure.”.
## Employment Tax
## **Pension salary exchange**
After much speculation, the Government has not made any changes in tax relief on employees’ pension contributions. Furthermore, NIC will not be levied on employer pension contributions, so pension salary exchange can be used to mitigate the increase in employers NIC. If you do not provide your employer pension in conjunction with a pension salary exchange arrangement, then this will be an ideal time to consider
15 St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
- implementing such an arrangement, the benefits of which include:
- Providing pensions in a National Insurance efficient manner.
- Encourage employees to think about their saving for their retirement.
- Increase employee engagement.
- Help employers to maximize their salary budget.
If you already have a pension salary exchange in place, given the Government’s recent announcements, now will be an ideal time to see whether it is achieving all your objectives.
The use of a tax and NIC efficient salary can also be used to provide employees with an electric car. The chargeable percentage for electric vehicles will increase by 2% in 2028/29 and 2029/30, rising to 9% in 2029/30. The use of providing an electric vehicle in conjunction with a salary sacrifice will continue to be a viable option for employers who are looking at providing cars to their employees/directors.
St. Luke’s Hospice (Harrow & Brent) Ltd – Audit Findings Report | Year Ended 31
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