2022-03-31-accounts - St Michael's Hospice (Incorporating The Freda Pearce Foundation)

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St Michael's Hospice (incorporating the Freda Pearce Foundation) Annual Report and Consolidated Financial Statements For the year ended 31st March 2022 Company Registration Number.. 01634942 (England and Wale51 Charity Registration Number.. 511179 st-michaels-hospice.org.uk twitter.comlstmichaelsh05P lacebook.com/5tmichaelshospicehereford

St Michael’s Hospice

Now and always: Caring to make a difference

Our service is completely free of charge

St Michael’s Hospice provides its care, free of charge, to patients, their families, and carers. This care is made possible by supporters taking part in fundraising events, playing our lottery, shopping at our retail outlets, making charitable donations, leaving gifts in their wills, or giving freely of their time to volunteer.

If you would like to support St Michael’s, you can find out more about what we do and ways you can help by visiting our website.

To share your comments or suggestions with us, please contact:

Quality and Compliance Team St Michael’s Hospice Bartestree Hereford HR1 4HA

quality@smhospicehereford.org

St Michael’s Hospice (incorporating the Freda Pearce Foundation)

For the year ended 31 March 2022 CONTENTS

Page Reference and Administrative Information ................................................................................... 4 Report of the Trustees ..................................................................................................................... 5 Related Parties and Relationships with other Organisations............................................................................... 5 Operating Structure and Charity Governance Code ............................................................................................ 5 Objectives and Activities ............................................................................................................. 6 Objectives......................................................................................................................................................................... 6 Mission .............................................................................................................................................................................. 6 Vision ................................................................................................................................................................................. 6 Principal Activities .......................................................................................................................................................... 6 Support for Principal Activities ................................................................................................................................... 7 Public Benefit ................................................................................................................................................................... 7 Strategic Report ............................................................................................................................... 7 Strategy ............................................................................................................................................................................. 7 Achievements and Performance 2021/22 ................................................................................................................. 8 Financial Review ............................................................................................................................................................ 14 Investment Policy and Returns .................................................................................................................................. 14 Reserves Policy ............................................................................................................................................................. 14 Principal Risks and Uncertainties .............................................................................................................................. 15 Going Concern ............................................................................................................................................................. 15 Future Plans ................................................................................................................................................................... 15 Structure, Governance and Management .................................................................................... 15 Trustees .......................................................................................................................................................................... 15 Remuneration Policy for Key Management Personnel ........................................................................................ 16 Policy for Employment of Disabled Persons .......................................................................................................... 16 Employee Information ................................................................................................................................................. 16 Funds Held as Custodian Trustees on Behalf of Others .................................................................................... 16 Statement of Trustees Responsibilities ................................................................................................................... 17 Independent Auditor’s Report ...................................................................................................... 18 Consolidated Statement of Financial Activities .......................................................................... 22 Consolidated and Charity Balance Sheets ................................................................................... 23 Consolidated Statement of Cash Flows ....................................................................................... 24 Notes to the Financial Statements ............................................................................................... 25

St Michael’s Hospice (incorporating the Freda Pearce Foundation) For the year ended 31 March 2022 Reference and Administrative Information

Charity Name	St Michael’s Hospice (incorporating The Freda Pearce Foundation)
Charity Number	511179
Company Number	01634942
Address of Registered Office	St Michael’s Hospice
	Bartestree
	Hereford, HR1 4HA
Country of Registration	England and Wales
Country of Incorporation	United Kingdom
Trustees	Trustees, who are also directors under company law, who served during
	the year and up to the date of this report were as follows:
	Mr D R Teague, Chair
	Revd Preb K B Garlick
	Ms P A Greenwood
	Mr D T Hammond
	Mrs C J Winney
	Mr E D Drummond
	Mr J M Martin (resigned 16thNovember 2021)
	Mr D J Campion (resigned 10thJanuary 2022)
	Mr M D Thomas (resigned 16thFebruary 2022)
	Mr I D A Entwisle (appointed 15thJune 2022)
	Mr C A Akle (appointed 15thJune 2022)
Life Patrons	Dr R G Miller
	Dr J J Kramer
	Mr A J Walshe
Chief Executive Officer	Mr M L Keel
Strategic Management Team	Mrs E J Cotton, Finance Director
	Mrs L A Carter, Income Generation and Marketing Director (resigned
	31st March 2022)
	Dr ACBlower (retired31stDecember 2021)
Company Secretary	Mr M L Keel
Bankers	The Royal Bank of Scotland PLC
	Drummond House
	1 Redheughs Avenue
	Edinburgh
	EH12 9JN
Independent Auditor	Crowe U.K. LLP
	Statutory Auditor
	Fourth Floor
	St James House
	St James Square
	Cheltenham, GL50 3PR

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

The Trustees of St Michael’s Hospice (‘St Michael’s’) present their report and the audited financial statements for the year ended 31 March 2022. Reference and administrative information set out on page 4 forms part of this report.

The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their financial statements in accordance with FRS 102.

The Trustees of St Michael’s are charity Trustees for the purpose of the Charities Act and are Directors of St Michael’s and Directors for the purposes of the Companies Act. The Trustees form the Trustee Board of St Michael’s. Although the Strategic Management Team’s (SMT) job titles include the word ‘Director’, these people are not Directors within the meaning of the Companies Act.

The Trustee Board is responsible under St Michael’s governing document for controlling the management and administration of St Michael’s within the law. It is ultimately responsible for everything St Michael’s does and how it does it. The overriding duty is to act in good faith within charity law and to make sure St Michael’s pursues its aims (as set out in the governing document); uses its assets only to pursue those aims; and acts for its community.

It does this by:

Safeguarding and promoting the values and mission of St Michael’s;
Determining the strategy and structure of St Michael’s;
Ensuring St Michael’s operates in an effective, responsible, and accountable manner, securing future sustainability;

Related Parties and Relationships with other

Organisations

St Michael’s is the parent undertaking of a group consisting of:

SMH Trading Limited - St Michael’s uses this subsidiary for non-primary purpose trading activities.
St Michael’s Hospice Development Company Limited - St Michael’s uses this subsidiary for redeveloping the hospice buildings and surroundings. This company is dormant.

Both subsidiaries are English registered companies and Gift Aid all available profits to St Michael’s where applicable.

Operating Structure and Charity Governance Code The Board retains ultimate operational responsibility and sets the aims, policies, and objectives of St Michael’s together with performance monitoring.

It has however devolved authority for its strategic implementation, attainment, performance and day-to-day running to the Chief Executive Officer and his senior management team who are also responsible for St Michael’s meeting all its statutory and contractual obligations.

St Michael’s Governance Manual describes these arrangements. The Governance Manual is kept under review by the Trustees with reference to the Charity Governance Code.

St Michael’s has a comprehensive range of operational policies and procedures that it maintains in line with the requirements of the Care Quality Commission, which regulates the clinical activity of St Michael’s, the Gambling Commission that regulates the Lottery and the Fundraising Regulator.

Ensuring the effective functioning of the Board of Trustees;
Ensuring the organisation meets all statutory requirements.

During the year, the Board of Trustees met five times as a complete Board with subcommittee meetings in between. Board members are unremunerated volunteers.

The Board is made up of members according to an analysis that identifies skills, experience and qualities needed for the good governance of St Michael’s.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

Objectives and Activities

Objectives

The Founders set up St Michael’s on 12 May 1982 as the Freda Pearce Foundation. St Michael’s is governed by its original Memorandum and Articles of Association, which St Michael’s has subsequently amended by special resolutions on 02 November 1998, 02 October 2002, 15 April 2009, 07 November 2012, 28 September 2017 and 25 March 2020. St Michael’s changed its name to St Michael’s Hospice (incorporating the Freda Pearce Foundation) on 02 November 1998.

The Articles, as amended, state the objects of St Michael’s are to promote the relief of sickness in people over the age of 18 years who are Herefordshire residents or living in the immediate surrounding counties.

Our mission is to make sure palliative and end of life care is available to all who can benefit from it, regardless of gender, diagnosis, social group or setting. This includes supporting those people close to the dying person
throughout the pre- and post-bereavement stages too .

St Michael’s knows it cannot do all of this on its own and so works with communities, groups and organisations to help them understand the importance of good palliative care and how they can play their part to ensure there is a spectrum of services to meet patient and family needs.

St Michael’s recognises it must help change people’s perception and understanding of end-of-life care as well as their readiness to talk about it – not only their own plans but their families and friends too. St Michael’s encourages patients (with their families where appropriate) to produce a plan that describes their needs and preferences. This helps ensure they receive the right care, in the right place, delivered by the right people.

St Michael’s provides its services free to patients, carers, and families to ensure accessibility.

Our vision is that everyone in Herefordshire and the surrounding areas who needs and wants palliative care has timely access to it, delivered in a way that suits them.

Principal Activities

St Michael’s fulfils its purpose through its principal activity of providing adult hospice care to the people of Herefordshire and immediate surrounding areas as follows:

Adult inpatient palliative medical and nursing care in a twenty-bed purpose-built unit (16 beds in use during this reporting period with negotiations ongoing with the NHS to open the remaining 4).
Adult outpatient palliative medical and nursing care in Day Services and appropriate therapy (physiotherapy, occupational, music, art and complementary).
Hospice at Home Service, which includes 24-hour telephone advice, care co-ordination service, urgent care team and planned home care packages. St Michael’s provides this care in people’s homes or places they regard as home (e.g. nursing, and residential homes). Some aspects of this service are delivered in collaboration with Marie Curie.
Education and Training. St Michael’s seeks to influence and guide the quality of palliative care in other settings and given by other providers through its education and training programmes thereby sharing the experience, expertise and knowledge St Michael’s has built up from nearly 40 years of working in palliative care. St Michael’s also ensures its staff and volunteers have opportunities to develop their skills, knowledge, and competence as these have a direct bearing on the quality of support St Michael’s can provide.
Underpinning the main services is the Supportive and Rehabilitative Care service, which social workers, bereavement care workers, spiritual workers and counsellors deliver. They offer this to patients and families in the Inpatient and Day services and Hospice at Home service. These services provide the vital social and psychological elements of support that characterises holistic care and to which St Michael’s aspires. The holistic approach not only considers the patient’s condition, life, and circumstances, but also supports and cares for the patient’s family and friends. The Rehabilitative and Supportive Care service also collaborates with another charity called Hope Support, to provide care and support to children who are close to our patients.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

Support for Principal Activities

The facilities teams (catering, housekeeping and maintenance) provide essential support for the principal activities. The management and administration team provide the necessary governance, oversight and operational management plus finance, human resources (HR), information technology (IT) and administrative support. The fundraising and retail teams maintain the necessary income needed by St Michael’s to deliver its services, as recurrent statutory funding (from NHS, local authorities, and the Department of Health) remains inadequate.

St Michael’s has over 800 volunteers who provide regular support to all areas of St Michael’s. Many more provide ad hoc support at events etc. or volunteer via their workplaces, communities, and other organisations for the benefit of St Michael’s. The contribution these people make is vital to St Michael’s success and survival. These volunteers support 241 employed staff (including bank staff) to provide the quality care service and the required support services for patients and their families to meet and go beyond regulatory requirements.

Public Benefit

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing St Michael’s objectives and in planning its future activities.

The Trustees consider how planned activities will contribute to the objectives that have been set, reporting the success of each key activity and the benefits St Michael’s has brought to those groups of people that it is set up to help, and the wider public benefit. The Trustees regularly review the objectives and activities of St Michael’s ensuring they remain focused on its stated purposes.

The Trustees continue to recognise three strategic intentions underpinned by four key areas in which St Michael’s must continue to develop and excel to successfully deliver the objectives and activities.

The Strategic Report that follows sets out our ongoing strategy and looks at what St Michael’s has achieved, and the outcomes of its work, in the reporting period.

Strategic Report

Our ongoing strategy is to have a multi-faceted approach that focuses on ensuring its long-term sustainability and ability to operate in the new health economy; as well as initiatives to do more, in partnership with other organisations, to give patients greater choice; ensure they receive the best support available free of charge; and to significantly enhance our engagement in our communities.

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Strategic Intentions
and excel
Areas to develop
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Influence, educate and work with others to improve care.

Communicate with and support more people. Working with others, we will increase accessibility, availability and quality of palliative care for more people.

We will work with key decision makers, other providers and the community to heighten awareness of death and dying issues and improve care wherever it is provided through education and research.

Income People Generation and Communication Management Marketing

Be a sustainable and well-led organisation.

We will ensure we generate enough income to deliver our vision and innovate as an organisation to make us more effective and efficient.

Information and Data Management

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

Achievements and Performance 2021/22

The world-wide COVID-19 pandemic, which started at the beginning of 2020 and is still ongoing at the time of writing, has impacted St Michael’s operations, its supporters, volunteers, and staff. No one could have imagined the depth to which this event would penetrate all our lives. However, the Trustees are immensely proud to report that the volunteers and staff have continued to show immense fortitude, resourcefulness, and ingenuity to ensure St Michael’s continued to provide its vital care and support to those who needed it and contributed to the wider effort in Herefordshire and surrounding areas to combat the effects of the pandemic.

The pandemic brought out the very best in people and we saw new friendships and relationships forged as Herefordshire’s health and social care services came together to protect our residents and serve those most in need. The Income Generation team has worked tirelessly to restore our events and activities and re-open our shops. The Team has done immensely well during these turbulent times, and we hope to be fully recovered and back on track during 2022/23.

The government support, provided to hospices in recognition of the important part we played in dealing with the pandemic, ensured St Michael’s was not severely impacted by the loss of many of its income streams and could carry on with confidence.

Strategic Intention One: Communicate with and support more people

St Michael’s has supported and cared for 2,053 people in 2021/22 (2020/21: 2,052).

We know that people want to receive their care in many different places and settings and not always at or by St Michael’s. We want to ensure that people, wherever they are, receive high-quality palliative care.

For those who chose hospice services for their end of life and palliative care, St Michael’s saw increasing demand as the pandemic lessoned.

2021/22 2020/21 2019/20 2018/19 2017/18 Inpatient Unit Activity No. % No. % No. % No. % No % Admissions 306 273 281 343 317 Admitted From: Home 181 59% 191 70% 201 72% 251 73% 232 73% Hospital 121 40% 79 29% 67 24% 88 25% 83 26% Other 4 1% 3 1% 13 4% 4 2% 2 1% Total 306 100% 273 100% 281 100% 343 100% 317 100% Location at end of stay: Died 214 70% 171 65% 190 67% 197 57% 187 59% Home 79 26% 89 30% 72 26% 146 43% 114 36% Hospital 0 0% 1 0% - - - - 9 3% Other 13 4% 12 5% 19 7% - - 7 2% Total 306 100% 273 100% 281 100% 343 100% 317 100% Average Length of admission 16 19 19 17 18 Occupancy (target 85%) 82% 89% 91% 80% 78% Hospice at Home Activity Number of People Supported 604 716 758 554 397 Number of Visits Made 10,116 10,198 10,520 9,609 9,930	2021/22 2020/21 2019/20 2018/19 2017/18 Inpatient Unit Activity No. % No. % No. % No. % No % Admissions 306 273 281 343 317 Admitted From: Home 181 59% 191 70% 201 72% 251 73% 232 73% Hospital 121 40% 79 29% 67 24% 88 25% 83 26% Other 4 1% 3 1% 13 4% 4 2% 2 1% Total 306 100% 273 100% 281 100% 343 100% 317 100% Location at end of stay: Died 214 70% 171 65% 190 67% 197 57% 187 59% Home 79 26% 89 30% 72 26% 146 43% 114 36% Hospital 0 0% 1 0% - - - - 9 3% Other 13 4% 12 5% 19 7% - - 7 2% Total 306 100% 273 100% 281 100% 343 100% 317 100% Average Length of admission 16 19 19 17 18 Occupancy (target 85%) 82% 89% 91% 80% 78% Hospice at Home Activity Number of People Supported 604 716 758 554 397 Number of Visits Made 10,116 10,198 10,520 9,609 9,930	2021/22 2020/21 2019/20 2018/19 2017/18 Inpatient Unit Activity No. % No. % No. % No. % No % Admissions 306 273 281 343 317 Admitted From: Home 181 59% 191 70% 201 72% 251 73% 232 73% Hospital 121 40% 79 29% 67 24% 88 25% 83 26% Other 4 1% 3 1% 13 4% 4 2% 2 1% Total 306 100% 273 100% 281 100% 343 100% 317 100% Location at end of stay: Died 214 70% 171 65% 190 67% 197 57% 187 59% Home 79 26% 89 30% 72 26% 146 43% 114 36% Hospital 0 0% 1 0% - - - - 9 3% Other 13 4% 12 5% 19 7% - - 7 2% Total 306 100% 273 100% 281 100% 343 100% 317 100% Average Length of admission 16 19 19 17 18 Occupancy (target 85%) 82% 89% 91% 80% 78% Hospice at Home Activity Number of People Supported 604 716 758 554 397 Number of Visits Made 10,116 10,198 10,520 9,609 9,930	2021/22 2020/21 2019/20 2018/19 2017/18 Inpatient Unit Activity No. % No. % No. % No. % No % Admissions 306 273 281 343 317 Admitted From: Home 181 59% 191 70% 201 72% 251 73% 232 73% Hospital 121 40% 79 29% 67 24% 88 25% 83 26% Other 4 1% 3 1% 13 4% 4 2% 2 1% Total 306 100% 273 100% 281 100% 343 100% 317 100% Location at end of stay: Died 214 70% 171 65% 190 67% 197 57% 187 59% Home 79 26% 89 30% 72 26% 146 43% 114 36% Hospital 0 0% 1 0% - - - - 9 3% Other 13 4% 12 5% 19 7% - - 7 2% Total 306 100% 273 100% 281 100% 343 100% 317 100% Average Length of admission 16 19 19 17 18 Occupancy (target 85%) 82% 89% 91% 80% 78% Hospice at Home Activity Number of People Supported 604 716 758 554 397 Number of Visits Made 10,116 10,198 10,520 9,609 9,930	2021/22 2020/21 2019/20 2018/19 2017/18 Inpatient Unit Activity No. % No. % No. % No. % No % Admissions 306 273 281 343 317 Admitted From: Home 181 59% 191 70% 201 72% 251 73% 232 73% Hospital 121 40% 79 29% 67 24% 88 25% 83 26% Other 4 1% 3 1% 13 4% 4 2% 2 1% Total 306 100% 273 100% 281 100% 343 100% 317 100% Location at end of stay: Died 214 70% 171 65% 190 67% 197 57% 187 59% Home 79 26% 89 30% 72 26% 146 43% 114 36% Hospital 0 0% 1 0% - - - - 9 3% Other 13 4% 12 5% 19 7% - - 7 2% Total 306 100% 273 100% 281 100% 343 100% 317 100% Average Length of admission 16 19 19 17 18 Occupancy (target 85%) 82% 89% 91% 80% 78% Hospice at Home Activity Number of People Supported 604 716 758 554 397 Number of Visits Made 10,116 10,198 10,520 9,609 9,930
306 100%	273 100%	281 100%	343 100%	317 100%
214 70% 79 26% 0 0% 13 4%	171 65% 89 30% 1 0% 12 5%	190 67% 72 26% - - 19 7%	197 57% 146 43% - - - -	187 59% 114 36% 9 3% 7 2%
306 100%	273 100%	281 100%	343 100%	317 100%
16 82% 604 10,116	19 89% 716 10,198	19 91% 758 10,520	17 80% 554 9,609	18 78% 397 9,930

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

The Inpatient Unit (IPU) continued throughout the pandemic and received 403 requests for admission, which resulted in 278 people having 306 admissions (some people were admitted more than once). This is an increase of 12% on 2020/21. We saw a huge increase in admissions during January, February, and March 2022 as we came out of the pandemic more. Not all referrals result in admission. There are various reasons why this might happen (the person’s condition changes; they decide to receive home care instead; or they deteriorate suddenly and die before the admission can be arranged), but in all cases St Michael’s supported the person with services suitable to their situation. The average length of each stay in the inpatient unit was 16 days (2020/21: 19 days), which is slightly lower than pre-pandemic levels and reflects the increased complexity and sickness of patients we are seeing now.

Overall occupancy of the inpatient unit was below our 85% target for the year because of the pandemic, but in the last three months exceeded target at over 90%.

Day Services continued to be hampered by the pandemic, but the volunteers and staff worked hard to restore some face-to-face and group activities where safe to do so. Telephone and video calls remained a feature of some of our support during the year.

The number of people supported face-to-face by Day Services during the reporting period was 126. This compares with 11 people in 2020/21 but is still well below pre-pandemic levels of over 300 people. Many people received support via telephone and video call instead of face-to-face. We expect this to recover quickly as restrictions lift and people restore confidence in coming out. The three core services being restored are Day Hospice (DH); Living Well (LW) Support; and Fatigue and Breathlessness Support (FAB).

We have grown our Supportive and Rehabilitative Care team this year and are now reaching more people in the community. We increased our Bereavement Support service using an NHS Grant in response to a growing need caused by the pandemic. We expect to continue this service into 2023.

We only carried out essential Outpatient Medical Clinics during the pandemic where telephone or video links were not possible or appropriate. The medical team did deliver some domiciliary visits, but again these were severely curtailed because of the pandemic. 92 patients had a medical outpatient appointment compared to 40 the previous year and 250 pre-pandemic.

The NHS commissioned Hospice at Home service continues to evolve and grow with 586 people referred for support and care. This is similar to previous years and is capped by the service’s capacity.

This is an important service for those people who would prefer to receive their care at home in familiar surroundings and close to their family. The Co-ordination Hub is the single-entry point for all St Michael’s services. It not only receives referrals but also provides advice, which gives patients, families, carers and professionals access to senior nurses and co-ordinators from 07.00hrs-22.00hrs every day. Outside of these hours, advice and support is delivered by the senior nurses on the Inpatient Unit with access to medical support as required.

An additional function of the Co-ordination Hub is to support patients on the Inpatient Unit waiting list when a bed is not immediately available. This support ranges from home visiting to telephone advice.

During the pandemic, the Hospice at Home team were asked to take on the brokerage function for finding agency care packages for people who qualified for funded care. This created increased work for the team, but the benefits to patients and families was most evident with quicker discharge from hospital and more responsive care packages provided.

The Compassionate Communities development work is picking up again with more volunteers receiving training and more locations setting up their own groups.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

Strategic Intention Two: Influence, educate and work with others to improve care

Our Mobile Hospice Support Vehicle could not continue its work of building awareness of our services in the more rural and far-reaching parts of Herefordshire. However, St Michael’s loaned the vehicle to Herefordshire NHS to use as a COVID testing and vaccination station. This has been hugely successful, and has increased awareness of St Michael’s services all over the County. It will return from its pandemic duties in June 2022.

St Michael’s educational programmes ensure staff and volunteers both at St Michael’s and in other partner organisations are competent and confident in the delivery of high-quality palliative care. The programme also supports more wider organisational development with management training, customer service courses and leadership skills acquisition. We are restoring the onsite and face-to-face training in response to increasing demand as people come out of the pandemic.

This move to deliver education and support electronically during COVID has accelerated our implementation of Project Echo at St Michael’s. This is a world-wide initiative that aims to democratise care by making specialist expertise available closer to the patient. St Michael’s is using this project to engage more with care homes and GPs. An NHS Grant has funded the project and we are implementing it with our hospice colleagues in Worcestershire.

We continue to develop our e-learning platform, which enables staff and volunteers to receive most of their training more flexibly and electronically. This ensures we meet our regulatory requirements set by the Care Quality Commission and we can easily evidence this. This platform allowed us to keep up with important training and education during the pandemic.

Strategic Intention Three: Be a sustainable and well-led organisation

St Michael’s continually seeks ways to increase its efficiency and effectiveness through monitoring and benchmarking its suppliers and continuing to cut out waste. St Michael’s is an active member of the Hospice Quality Partnership (HQP) – an organisation set up by UK hospices to achieve best value through joint procurement and contracting.

St Michael’s has a diverse range of income streams, so it is not reliant on any one source of funds. These include many different types of fundraising (donations, legacies, events, community, trusts, lottery, corporate); retail income from our shop portfolio; investment income; property rental; and some NHS income.

We have developed our management and leadership structure to ensure decision-making and responsibility is as close to the point of delivery as possible. We support managers, supervisors, and leaders in all areas to seek ways to improve the things we do and ensure our supporters, staff and volunteers flourish in a positive and nurturing environment, which in turn delivers the best care to our patients and families.

St Michael’s finances continue to hold up despite a difficult economic environment. A continuation of the efforts made by staff, Trustees, and volunteers to maximise income, control costs, and secure efficiencies without compromising services will continue to support financial sustainability.

Areas that underpin our three strategic intentions

1. People Management

St Michael’s is reliant on having enough of the right people (volunteers and paid staff) to deliver its objectives and activities; finding the best people is becoming harder as demographic changes occur and there is a smaller pool from which to recruit professional staff.

We have continued our focus on improving our Human Resource function to speed up systems and processes and automate as many as possible to free up staff and volunteers to concentrate on their core roles.

The Trustees are grateful to all volunteers and staff for their dedication and hard work to bring St Michael’s through the pandemic.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

The annual organisation-wide staff survey operated by Best Companies gives us a confidential and impartial review of our staff engagement. In 2021/22 we achieved ‘One Star’ status and inclusion in the Times Top Charities to Work For list.

Achieving this improvement in staff engagement during a very difficult year is testament to the strong leadership and management of the organisation.

The Trustees wish to record their thanks to the many volunteers without whom St Michael’s would be unable to maintain the quality of service and deliver all the support at the low cost we achieve.

The estimated value of the volunteer contribution to St Michael’s is more than £2 million per annum.

During the year we had 241 (2020/21: 229) staff, equivalent to 161 (2020/21: 153) whole time equivalent posts. 146 (2020/21: 141) work directly in clinical and care areas and associated parts of the service.

Dr Tony Blower, Medical Consultant, retired in December 2021 after 21 years of dedicated service at St Michael’s.

2021/22 also saw the departure of Lynne Carter, Income Generation, Marketing and Communications Director and three Trustees, David Campion, James Martin and Mike Thomas.

The Trustees wish to record their thanks to all St Michael’s volunteers and staff, past and present, in all departments, who are essential to providing high-quality care for patients.

The staff and volunteers are the guardians of St Michael’s excellent reputation and good standing, attributes which are vital and must remain at the highest level.

2. Income Generation and Marketing

Income Generation and Marketing plans were under continuous review to ensure every opportunity was taken to safeguard income, reduce costs and deliver excellent supporter and customer care as the new COVID-19 variants unfolded.

The gradual lifting of Government restrictions during the year enabled many of our much-loved Events and Community Fundraising activities to return. Some continued in the virtual or adapted form adopted in the height of the pandemic, and participation numbers for our flagship events remained lower than pe-pandemic levels by some 50%-60%. Despite this, Events and Community Fundraising achieved an amazing 70% increase on the previous year, with income of £632,140 (2020/21: £371,827), still, however, a shortfall against budget of £251,860.

June 2021 saw the welcome return of the Plant Fair. This was the first fully open event adapted under COVID-19 guidelines, and saw over 1,150 visitors attend, generating £12,345 net income, an increase of 23% against budget.

The Sue Parry Football Tournament returned, with 2,662 spectators, and 532 players participating, generating its highest ever net income of £8,286.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

Santa’s Grotto was the fastest-selling event of its kind and was over-subscribed within 48 hours, leading to 2 further dates being added, giving kudos to our target of being the best, and most sought after, experience in Herefordshire.

The Santa Run sold out, with 300 participants. The event was altered to accommodate COVID-19 safeguards which affected income slightly.

The most significant impact of COVID-19 was felt by retail. With plentiful stock secured from our donation stations, which were opened in 2020/21 across Hereford and Rosson-Wye in response to customer demand during lockdown shop closures, our retail function was able to bounce back as soon as restrictions lifted in April 2021. Most shops have now reverted to accepting donations direct from donors.

Retail income for the year was an exceptional £2,987,159 (2020/21: £774,543). St Michael’s continued to secure Government support through the Coronavirus Job Retention Scheme and Retail Support grants which amounted to £69,432 (2020/21: £822,305 retail only), tipping income to over £3 million for the first time ever.

The focus for retail going forward is on property and eBay expansion, and we continue to search for opportunities to invest in a further large retail outlet. While the pressures of an increasing number of discount retailers, less volunteers, and people more likely to sell their possessions online themselves impacts, we are still confident that St Michael’s retail operation will continue to evolve and grow to serve its customers and support the wider work of St Michael’s.

Our Hospice Lottery and Raffles contributed £387,855 net income (2020/21: £321,812), with activity largely unaffected by the pandemic. The Lottery’s 21[st] Birthday was a moment to recognise and to encourage new members to join, with a month-long campaign, and the re-introduction of face-to-face canvassing contributing to the sign-up of 509 new members and 630 new plays during the year.

We generated £6,870,979 (2020/21: £4,822,098) from voluntary and other income sources (excluding income directly related to our charitable activities). The cost of raising funds, including the reallocation of support cost, was £2,741,170 (2020/21: £2,168,750). Increased costs reflect a return to pre-pandemic levels and some investment to meet future challenges. For every £1 raised, 61p goes on delivering and improving our care and support for people living with life-limiting illness, and 39p goes on generating further income.

NHS England awarded £1,116,500 (2020/21: £2,246,143) to make available bed capacity and community support to provide support to people with complex needs in the context of the COVID-19 situation. This Government support meant care services could continue. Strong financial management to control costs, and legacy income, being unaffected by the pandemic, totalling £1,631,795 for the year, increased net income before net gains on investments to £1,382,374.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

We ask supporters their preferences as to how we communicate with them. We give them the option to let us know if they wish to change their preferences or no longer wish to hear from us, and always respect their wishes. We do not sell or exchange lists of data with any other charities or companies.

3. Communication

Our Communications Team keeps St Michael’s in the forefront of people’s minds, from the promotion of events to stories which highlight how people living with a lifelimiting illness have been supported by St Michael's.

Throughout the pandemic, marketing and communications continued for St Michael’s activities, including development of our website, patient information leaflets, newsletters and videos, and support for Income Generation plans.

We review compliance through non-financial audit, mystery shoppers, monitoring feedback and at our Income Generation & Marketing Committee and take corrective action when required to ensure that all St Michael’s fundraisers and those who work on our behalf are aware of and adhering to our high standards.

We have developed and defined our brand personality through the consistent and timely use of social media promotion which continues to gain momentum with increased engagement across all channels. Digital campaigns have furthered this, with a fresh, colourful, and upbeat approach to our graphics.

If we encounter someone showing signs of distress, confusion, or vulnerability our fundraisers will politely refuse any donation offered in such circumstances. In the unlikely event of a donation being received in such circumstances, we will refund the donation. The number of complaints received during the year regarding fundraising was nil (2020/21: nil).

Supporter communications followed a stewardship approach keeping supporters informed on how St Michael’s was adapting and continuing to deliver its services throughout the pandemic. Thanks to this work, the community is far more aware of the breadth of services St Michael’s provides; how we are funded; and how more people can benefit from our services, not just at the end of life.

5. Information and Data Management

With the ability to collect vast amounts of data and information easily these days, St Michael’s needs to be able to analyse and use this data to increase its effectiveness and understanding of its work. Much of our work uses computers and so we have a strategy to develop and secure these systems appropriately and to best effect.

The quality and visibility of our branding, patient literature, St Michael's website, hospice services and external communication continues to ensure people remain inspired by the work carried out by St Michael’s.

The Charity has achieved Cyber Essential Plus accreditation (Certificate Number: IASME-CEP-008874).

4. Responsible Fundraising

St Michael’s is registered with the Fundraising Regulator and is a member of the Institute of Fundraising, the National Association of Hospice Fundraisers, the Hospice Lotteries Association, and the Charity Retail Association, and is committed to adhering to the Code of Fundraising Practice. We have had no adjudications. We have continued to strengthen our Data Protection procedures and communication preferences to all our supporters and feel well placed going forward.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

Financial Review

The consolidated financial statements that follow later in this report comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows, and related notes, which include the results of the related companies. The result for the year was a surplus of £1,424,501 (2020/21: £2,195,546 surplus).

Total expenditure for the year increased by 10.16% to £8,744,676 (2020/21: £7,938,411); 62% of this relates to increased staffing costs, with a further 38% relating to increased fundraising and other trading activities. 69% was spent on charitable activities.

----- Start of picture text -----
£000's
5,769
Charitable Activities
6,004
2,169
Raising Funds
2,741
2021 2022
----- End of picture text -----

Total income for the year increased by 7.34% to £10,127,050 (2020/21: £9,434,696).

----- Start of picture text -----
£000's
Donations and 2,503
Legacies 2,989
4,613
Charitable Activities
3,256
Other Trading 1,284
Activities 3,628
Investments and 1,035
Other 254
2021 2022
----- End of picture text -----

There follows a brief overview of the financial management that has fed into these reports.

Investment Policy and Returns

Because of the uncertainty of fundraising income streams, it is necessary to ensure that funds are always readily available for use to ensure that levels of care are not adversely affected in the event of any short-term income reduction. The Trustees have decided to maintain a lowrisk investment strategy to protect reserves, and therefore services, rather than seeking higher return investments which increase the risk profile. Performance is measured against agreed inflation and market indices.

In the current economic crisis, maintaining pace with inflation remains exceptionally hard. With net gains of £7,127 (2020/21: £649,261), and total return of £147,443 (2020/21: £741,416) performance fell short of target.

Reserves Policy

The Trustees have reviewed the reliability of future income streams, the commitment to future expenditure and risks faced as a Charity. St Michael’s has determined that it needs reserves for the following reasons:

To fund shortfalls in income (whether statutory, retail, lottery, donations, legacies, or other fundraising activities) when it does not reach expected levels. St Michael’s is dependent on fundraised income as well as statutory funding. The fundraised income is subject to fluctuation as economic conditions change and statutory funding could be affected by government policy and the financial position of NHS and local authority commissioners;
To fund unexpected expenditure, for example when legislation changes, or unplanned events occur. This could also be for unexpected building maintenance costs and to provide a degree of flexibility for innovation;
To fund working capital. The greatest cost is salaries and therefore the timing of cash outflows is relatively fixed whereas both fundraised and statutory income fluctuate in terms of cash inflow over the year;
To fund future developments to ensure we continue to meet the needs of our community.

At the end of March 2022, the free cash reserves within general funds increased to £11,619,056 (2020/21: £9,794,401), an amount which equates to 14.5 months of budgeted 2022/23 operating costs, exceeding our reserve policy of 9 months. This level of reserves helps St Michael’s to continue to provide all of its services in difficult times such as we are experiencing during the COVID-19 crisis, and the uncertain economic times ahead with rising cost inflation.

The net book values of freehold land and buildings are held in a designated reserve called the Property Fund, totalling £9,894,495 at 31 March 2022 (2020/21: £9,932,715). By designating these funds, the Trustees aim to give a clear presentation of the free reserves available to St Michael’s to meet its continuing operational commitments. At the year-end, restricted reserves totalled £137,430 (2020/21: £104,487). At the year-end, the designated capital investment fund totalled £180,770 (2020/21: £361,191) and the designated development fund totalled £1,118,898 (2020/21: £1,170,000).

The level of reserves is monitored regularly by the Finance & Investments Committee and this policy is reviewed annually by the Trustees when the budgets are approved. This will ensure that appropriate steps are in place to maintain reserves at the required levels.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

Principal Risks and Uncertainties

The Pandemic is ongoing at the time of this report and remains under continuous review by the Trustees with regular actions taken to comply with government guidance, laws, and regulations. They continue to consider the following material risks:

Unpredictability of the legacy income stream, which currently represents 16.1% (2020/21: 14.5%) of all income.
A risk to donations because of the economic and political climate and competition for funds.
Uncertainty over the NHS contribution due to austerity measures and current economic climate.
Demand for hospice services outstripping capacity both in terms of volume and skill.
An ageing workforce and volunteer cohort.
Challenges in recruitment, particularly in nursing nationally and locally.
Failure in the provision of the service.

Going Concern

The Trustees have reviewed financial forecasts into 2026 and have paid special consideration to reviewing the risks to the charity’s services and finances as a result of COVID19. Through careful management of expenditure and stewardship of income, the Trustees are confident that St Michael’s will continue as a going concern for the foreseeable future.

Future Plans

St Michael’s will continue its current strategy while monitoring the risks to its implementation. The needs of our patients continue to change and evolve, more so because of COVID-19. We will continue to maximise the use of our facilities for the benefit of our patients and families. We will continue to keep all our services under review as each develops and impacts the others so that patients and families receive the high-quality care they need – in the way they want it and at the place of their choosing. With the introduction of the Integrated Care Boards (ICB) for Herefordshire and Worcestershire, St Michael’s continues to ensure its interests and operations in Herefordshire are heard at the ICB level, including continuing to work closely with our colleagues in the other hospices.

An outcome of the pandemic is that Central Government recognises the vital contribution of hospices and will be working to achieve a fair payment scheme to guide local commissioners in their negotiations with their hospices to ensure a better deal. During 2022/23 we will continue to focus on enhancing and growing our volunteer teams, which will be more challenging than ever before, but who remain vital to our survival and sustainability. We will continue to move closer to our communities.

The Mobile Hospice Support Vehicle will contribute to this enormously by travelling round the villages and far reaches telling people about St Michael’s services and offering support locally. Combined with the Compassionate Communities work we have started this will give more support to more people too. By developing our education programmes and embracing new technologies, we will offer more opportunities and ways for people to engage with St Michael’s for their personal and professional development, especially in care and residential homes where most palliative and end of life care will be delivered in the future.

As the organisation grows and becomes more spread (through more fundraising, retail outlets and services delivered in homes) we need to ensure we keep people in touch with St Michael’s and fully informed and briefed so they can not only work effectively but also act as expert ambassadors for St Michael’s. We will develop our communication channels more, so we ensure each donor and supporter understands the important contribution they make to people’s lives in Herefordshire and the surrounding areas.

Finally, St Michael’s (along with many others) is experiencing a great deal of learning and accelerated development through the pandemic delivering services in new ways which take advantage of technologies that have become commonplace. We are committed to retaining as much of this as possible and developing the new links and collaborations that have been forged where this supports our strategic aims.

Thanks to the generosity of our community, St Michael's continues to provide the best possible palliative care and support for local people and their families. The Board of Trustees would like to extend a heartfelt thank you to all the supporters who make this possible.

Structure, Governance and Management

Trustees

Trustees are unremunerated volunteers. All Trustees give their time voluntarily and receive no benefits from St Michael’s. Any expenses reclaimed from St Michael’s are set out in note 10 to the financial statements. of which there were none. When there are Trustee vacancies, the Board consider the skills mix and diversity of the continuing Trustees to determine the person specifications needed in new Trustees. Recruitment is an open competitive process involving public advertising, networking, and head-hunting as appropriate. St Michael’s provides potential Trustee candidates with information about the organisation and about the role of Trustee, including the role description and expectation of Trustees and the length of tenure of appointment. The full Board of Trustees make appointments.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

Every Trustee must sign a Trustee Commitment and Disclosure Form to act as a Trustee of St Michael’s before he or she is eligible to become a Trustee, including a declaration of interest form, which is renewed each year. On appointment or election as a Trustee, a Trustee becomes a member of St Michael’s. Trustees hold membership of St Michael’s only during their Trusteeship and retirement, resignation or removal as a Trustee ends their membership of St Michael’s.

It is St Michael’s policy and practice to provide Trustees with appropriate training to undertake their role and to ensure that new Trustees receive an induction to St Michael’s and to the role of a Charity Trustee and Company Director. New Trustees attend a corporate induction day, and we are looking at a potential scheme to provide them with a mentor Trustee who would give them specific support over the first 12 months of their Trusteeship. Trustees are elected initially for a three-year term and are appraised annually.

The Trustees delegate day-to-day responsibility to the Chief Executive, who in turn delegates some management functions to the Strategic Management Team (SMT). The Schedule of Delegation is set out in the Governance Manual. The Trustees have four sub-committees that meet quarterly and are responsible for reviewing St Michael’s activities in their respective areas of expertise in more detail than full Board meetings can achieve. These are:

Clinical Governance & Care Committee;
People & Facilities Committee;
Finance & Investment Committee;
Income Generation & Marketing Committee.

Each committee / group has at least two Trustees and a member of SMT as its members. A Trustee chairs the meetings and presents a report at the Board of Trustees, which meets every six to eight weeks.

Remuneration Policy for Key Management Personnel

The aim of St Michael’s pay policy is to offer fair pay to attract and keep appropriately qualified staff to lead, manage, support, and deliver St Michael’s aims. Trustees are ultimately responsible for setting the Chief Executive’s remuneration level and agreeing the annual cost of living award.

The Chief Executive sets grading levels for the Strategic Management Team with Trustee oversight (except medical staff who are on the NHS scheme). The Strategic Management Team sets grading levels for all other staff.

When deciding the Chief Executive and Senior Staff salary levels, consideration is given to:

the purpose, aims and values of St Michael’s, and its beneficiaries’ needs;
how pay is linked to the skills, experiences and competencies St Michael’s needs from its senior staff and the scope of their roles and how St Michael’s can maintain the ability to recruit and retain suitably qualified and experienced management;
St Michael’s current business plan and how implementing it may affect the number of senior staff St Michael’s needs to employ or recruit, and the nature of these roles;
St Michael’s ability to pay, including:
the benefit to St Michael’s that such positions will bring;
the cost to St Michael’s of increasing remuneration levels.

St Michael’s regularly benchmarks its salary against other similar organisations and, in the case of clinical staff, with the NHS and local authority in Herefordshire.

Policy for Employment of Disabled Persons

St Michael’s fully and fairly considers all applications for recruitment to contracted or volunteer roles made by disabled persons and gives regard to their aptitude and abilities. Opportunities for training, career development and promotion are considered in the same way for those employed or volunteering. Should an employee or volunteer become disabled, St Michael’s arranges appropriate training and support to enable continued employment at St Michael’s where possible.

Employee Information

St Michael’s is committed to providing staff and volunteers with information on matters of concern to them. We have introduced a Staff and Volunteer Forum; an Operational Management Team that brings decision-making and information closer to employees and volunteers; and started the process to improve our People Systems and Processes. This will include more opportunities and methods for management to consult with staff and volunteers and provide feedback. This is as well as the current systems of noticeboards; staff emails; newsletters; staff meetings, digital communications, and volunteer events.

Funds Held as Custodian Trustees on Behalf of Others

Within deferred income is £128,500 held as a cash investment which provides a lifelong annuity to an individual. St Michael’s and a GP surgery are joint beneficiaries of the residual capital.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2022

Statement of Trustees Responsibilities

The Trustees (who are also directors of the company for the purposes of company law) are responsible for preparing the Trustees annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or 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 and statements of recommended practice 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 St Michael’s will continue in operation

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure 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.

In so far as the Trustees are aware:

There is no relevant audit information of which the charitable company’s auditor is unaware
The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish the auditor is aware of that information

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of St Michael’s guarantee to contribute an amount not exceeding £2 to the assets of St Michael’s in the event of winding up.

The Trustees are members of St Michael’s, but this only entitles them to voting rights. The Trustees have no beneficial interest in St Michael’s.

The Trustees annual report, which includes the strategic report, has been approved by the Trustees on 27 July 2022 and signed on their behalf by:

Mr D Teague – Chair

Independent Auditor’s Report To the Members of St Michael’s Hospice (incorporating the Freda Pearce Foundation) For the year ended 31 March 2022

Opinion

We have audited the financial statements of St Michael’s Hospice (Incorporating the Freda Pearce Foundation) (‘the charitable company’) and its subsidiaries (‘the group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, Group Balance Sheet, Charity Balance Sheet, Consolidated Statement of Cash Flows, and notes to the financial statements, including 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 the charitable company’s affairs as at 31 March 2022 and of the group’s 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 charitable company's or 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

Independent Auditor’s Report To the Members of St Michael’s Hospice (incorporating the Freda Pearce Foundation) For the year ended 31 March 2022

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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit:

the information given in the Trustees’ report, which includes the Directors’ report and the Strategic 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’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors’ report included within the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate and proper accounting records have not been kept; or
the 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

As explained more fully in the Trustees’ responsibilities statement set out on page 16, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Independent Auditor’s Report To the Members of St Michael’s Hospice (incorporating the Freda Pearce Foundation) For the year ended 31 March 2022

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context were the Gambling Commission, CQC Regulations and General Data Protection Regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be with the completeness and accuracy of grant income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance and Income Generation Committee about their own identification and assessment of the risks of irregularities, designing audit procedures over income, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.

Independent Auditor’s Report To the Members of St Michael’s Hospice (incorporating the Freda Pearce Foundation) For the year ended 31 March 2022

For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Guy Biggin Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR

Date: 14 September 2022

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Consolidated Statement of Financial Activities (incorporating an income and expenditure account) For the year ended 31 March 2022

Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Other 7 Total income Expenditure on: Raising funds 9 Charitable activities 9 Total expenditure 9 Net income before net gains on investments Net gains on property investments 15 Net gains on listed investments 16 Net income for the year Transfers between funds 25 Net movement in funds Reconciliation of funds: Total funds brought forward 25 Total funds carried forward 25	Unrestricted £ 2,944,113 2,103,571 3,628,186 169,366 84,596 8,929,832 2,739,827 4,870,130 7,609,957 1,319,875 35,000 7,127 1,362,002 29,556 1,391,558 22,704,900 24,096,458	Restricted £ 44,448 1,152,500 270 - - 1,197,218 1,343 1,133,376 1,134,719 62,499 - - 62,499 (29,556) 32,943 104,487 137,430	2022 Total £ 2,988,561 3,256,071 3,628,456 169,366 84,596 10,127,050 2,741,170 6,003,506 8,744,676 1,382,374 35,000 7,127 1,424,501 - 1,424,501 22,809,387 24,233,888	2021 Total £ 2,502,729 4,612,598 1,284,302 120,647 914,420
				9,434,696
				2,168,750 5,769,661
				7,938,411
				1,496,285 50,000 649,261
				2,195,546 -
				2,195,546 20,613,841
				22,809,387

The notes on pages 25 to 46 form part of these financial statements.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Consolidated and Charity Balance Sheets As at 31 March 2022

Note Fixed assets Tangible fixed assets 14 Investment properties 15 Investments 16 Current assets Stock 19 Debtors 20 Cash at bank and in hand Liabilities Creditors: amounts due within one year 21 Net current assets Total net assets Funds of the Group and Charity: 25 Restricted income funds Unrestricted funds Designated funds General funds Total unrestricted funds Total Group and Charity funds	Group 2022 2021 £ £ 11,177,733 11,379,308 700,000 665,000 8,914,515 8,767,822 20,792,248 20,812,130 16,801 20,404 2,035,124 1,267,595 2,370,110 1,372,901 4,422,035 2,660,900 (980,395) (663,643) 3,441,640 1,997,257 24,233,888 22,809,387 137,430 104,487 11,194,163 11,577,598 12,902,295 11,127,302 24,096,458 22,704,900 24,233,888 22,809,387	Charity 2022 2021 £ £ 11,177,733 11,379,308 700,000 665,000 8,914,515 8,767,822 20,792,248 20,812,130 2,178 4,076 2,147,150 1,296,136 2,255,981 1,357,021 4,405,309 2,657,233 (964,233) (660,395) 3,441,076 1,996,838 24,233,324 22,808,968 137,430 104,487 11,194,163 11,577,598 12,901,731 11,126,883 24,095,894 22,704,481 24,233,324 22,808,968	Charity 2022 2021 £ £ 11,177,733 11,379,308 700,000 665,000 8,914,515 8,767,822 20,792,248 20,812,130 2,178 4,076 2,147,150 1,296,136 2,255,981 1,357,021 4,405,309 2,657,233 (964,233) (660,395) 3,441,076 1,996,838 24,233,324 22,808,968 137,430 104,487 11,194,163 11,577,598 12,901,731 11,126,883 24,095,894 22,704,481 24,233,324 22,808,968
			20,812,130
			4,076 1,296,136 1,357,021
			2,657,233 (660,395)
			1,996,838
			22,808,968
			104,487 11,577,598 11,126,883
			22,704,481
			22,808,968

The Charity’s net income for the year was £1,424,356 (2020/21: £2,195,581).

The notes on pages 25 to 46 form part of these financial statements.

Approved and authorised for issue by the Board of Trustees on 27 July 2022 and signed on their behalf by:

Company Registration Number: 01634942 (England and Wales)

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Consolidated Statement of Cash Flows For the year ended 31 March 2022

Note Cash flows from operating activities Net cash used in operating activities 26 Cash flows from investing activities: Dividends, interest, and rents from investments Proceeds from the sale of fixed assets Purchase of fixed assets Proceeds from the sale of investments Purchase of investments Movement in investments – cash holdings Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 27	2022 £ 1,170,205 169,366 300 (201,101) 1,368,020 (1,515,654) 8,068 (171,001) 999,204 1,365,181 2,364,385	2021 £ 2,368,591 120,647 - (191,174) 1,830,366 (4,412,956) 490,914
		(2,162,203) 206,388 1,158,793
		1,365,181

The notes on pages 25 to 46 form part of these financial statements.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

1. Accounting policies

a) Statutory information

St Michael’s Hospice (incorporating the Freda Pearce Foundation) is a charitable company limited by guarantee (Company number 01634942 and Charity number 511179) and is incorporated in the United Kingdom. The registered office address and principal place of business is St Michael’s Hospice, Bartestree, Hereford, HR1 4HA. This is also the address of its 100% wholly owned subsidiaries.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company and its wholly owned subsidiaries - SMH Trading Limited and St Michael's Hospice Development Company Limited - on a line-byline basis. Transactions and balances between the charitable company and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the companies are disclosed in the notes of the charitable company's Balance Sheet. A separate Statement of Financial Activities, or income and expenditure account, for the charitable company itself is not presented as permitted by the exemptions afforded by section 408 of the Companies Act 2006 not to include it. The charitable company has also taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only cashflow and certain financial instrument disclosures.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The Trustees consider that there are no material uncertainties about the group's ability to continue as a going concern following their review of the financial position, reserves levels and future plans. In arriving at their decision, the Trustees have thoroughly reviewed the impact of COVID-19 on service demand and delivery and income levels and have taken appropriate mitigating action to minimise risk.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably. Income from voluntary sources is received by way of donations, gifts, and fundraising events, and is included in full in the Statement of Financial Activities when receivable. Income from gift aid tax reclaims is recognised for all donations made prior to the year-end where valid gift aid declarations are held.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

1. Accounting policies (continued)

For legacies, entitlement is taken as the earlier of the date on which either: the charitable company is aware that probate has been granted, the estate has been finalised and the executor has made notification to the charitable company that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charitable company has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charitable company, or the charitable company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material in note 3.

Income from charitable activities is recognised as services are performed. Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Donations of gifts, services, and facilities

In accordance with the Charities SORP (FRS 102), the value of services provided by volunteers is not recognised. The Trustees’ annual report contains further information about the invaluable contribution provided by volunteers. On receipt, donated gifts, professional services, and donated facilities are recognised based on the value of the gift to the charitable company which is the amount the charitable company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. Clothing and other goods donated for resale are included in income when they are sold. If an item is significant in value, it would be measured and valued at the year-end.

g) Interest receivable and dividends

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the bank. Dividends are included when received or declared and receivable.

h) Fund accounting

Restricted funds are those which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for a specific purpose. The notes to the financial statements provide further details. Once the terms and conditions of the restrictions have been met, tangible fixed assets purchased with restricted monies, are transferred to unrestricted funds.

Unrestricted funds are those available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for any other purpose.

Designated amounts within the unrestricted funds represent the total Net Book Value of the freehold land and buildings and assets in the course of construction held at the balance sheet date and funds designated for the development projects and capital investment. Designated funds may also comprise amounts that have been set aside by the Trustees for particular purposes, notably for the purchase of other assets used within the business.

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Raising funds - this relates to the costs incurred by the charitable company in procuring voluntary contributions to it, as well as the costs of any activities with a fundraising purpose, including charity shop running costs and investment manager fees. This includes salaries of staff engaged in fundraising activities, direct expenditure, and support costs. The cost of fundraising activities is recognised in the year in which it is incurred although the income derived from the activities may arise in future years.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

1. Accounting policies (continued)

Charitable activities - this includes the costs of delivering services, and other educational activities undertaken to further the purposes of the charitable company and their associated support costs.

Irrecoverable VAT is charged against activities on the same basis as the allocation of support costs. Governance costs are included within support costs and relate only to external audit fees.

j) Allocation of support costs

Expenditure is allocated to the activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

ach activity.
Inpatient Care	50.0%
Raising Funds	20.5%
In reach (Day Care Services)	2.5%
Supportive & Rehabilitative Care	1.0%
Education & Training	1.0%
Hospice at Home	25.0%

k) Operating leases

Rentals applicable to operating leases are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

l) Tangible fixed assets

Items are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities based on the use of the related assets in those activities. Assets are reviewed for impairment annually to consider if their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

The depreciation rates in use are as follows:

preciation rates in use are as follows:
Freehold buildings
- Main Structure	50 years
- Roof	10 - 40 years
- Windows and doors	25 years
Leasehold property	Over the period of the lease
Medical and nursing equipment and beds	5 – 10 years
Motor vehicles	3 – 7 years
IT Equipment and development	3 – 5 years
Plant and machinery	15 - 25 years
Fixture, fittings, and equipment	3 – 5 years

Land and buildings are included at cost. Land and assets in the course of construction are not depreciated. In accordance with the Statement of Recommended Practice, freehold buildings have been categorised into those components which have substantially different useful economic lives.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

1. Accounting policies (continued)

m) Investment properties

Investment properties are measured initially at cost and subsequently included in the balance sheet at fair value. Investment properties are not depreciated. Any change in fair value is recognised in the Statement of Financial Activities. The valuation method used to determine fair value is stated in the notes to the financial statements.

n) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the Balance Sheet date using the closing quoted middle market price.

Any change in fair value will be recognised in the Statement of Financial Activities. Investment gains and losses are combined and shown in the heading “Net gains / (losses) on investments” in the Statement of Financial Activities. The charitable company does not directly acquire put options, derivatives, or other complex financial instruments.

o) Investments in subsidiaries

Investments in subsidiaries are at cost.

p) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.

q) Debtors

Trade debtors, other debtors, accrued income and amounts owed by group entities are recognised at the settlement amount. Prepayments are valued at the amount prepaid net of any trade discounts due.

r) Cash at bank and in hand

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

s) Creditors

Creditors are recognised where the group 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 are normally recognised at their settlement amount after allowing for any trade discounts due.

t) Financial instruments

The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Listed investments are shown at market value.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

1. Accounting policies (continued)

u) Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The items in the financial statements where these estimates and judgements have been made include the following:

i) Useful economic lives of tangible assets

The annual depreciation charges for the tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the tangible assets and note l) for the useful lives of each class of asset.

ii) Impairment of debtors

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the Trustees consider factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 20 for the net carrying amount of the debtors and associated impairment provision.

iii) Accrued legacy income

Legacy income is accrued if probate has been granted prior to the year-end, and the estate has been finalised, or the executor has made notification to the charitable company that a distribution will be made, or when a distribution is actually received, mitigating estimation uncertainty as income can be measured reliably.

v) Pensions

Defined benefit scheme

The charitable company contributes to the NHS pension scheme for eligible staff. Such contributions are a fixed percentage of salary. Contributions are charged to the Statement of Financial Activities in accordance with the rules of the scheme. The scheme is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, it is accounted for as if it were a defined contribution scheme: the cost to the NHS Body of participating in the scheme is taken as equal to the contributions payable to that scheme for the accounting period. The charitable company has no ongoing liability once the standard contributions to the scheme are made.

Defined contribution schemes

Where staff are not eligible to join the NHS pension scheme, they can opt to join a group personal pension plan scheme. St Michael’s also contributes to the personal schemes of individual employees. Such contributions are a fixed percentage of salary. In accordance with workplace pension legislation, eligible employees who are not already in a compliant pension scheme are automatically enrolled into a workplace pension scheme. Contributions are charged to the Statement of Financial Activities in accordance with the rules of the schemes.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

2. Detailed comparatives for the Statement of Financial Activities

Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Other 7 Total income Expenditure on: Raising funds 9 Charitable activities 9 Total expenditure 9 Net income before net gains on investments Net gains on property investments 15 Net gains on listed investments 16 Net income for the year Transfers between funds 25 Net movement in funds Reconciliation of funds: Total funds brought forward 25 Total funds carried forward 25	Unrestricted £ 2,448,446 2,362,075 1,284,302 120,647 914,420 7,129,890 2,168,587 3,498,247 5,666,834 1,463,056 50,000 649,261 2,162,317 50,000 2,212,317 20,492,583 22,704,900	Restricted £ 54,283 2,250,523 - - - 2,304,806 163 2,271,414 2,271,577 33,229 - - 33,229 (50,000) (16,771) 121,258 104,487	2021 Total £ 2,502,729 4,612,598 1,284,302 120,647 914,420
			9,434,696
			2,168,750 5,769,661
			7,938,411
			1,496,285 50,000 649,261
			2,195,546 -
			2,195,546 20,613,841
			22,809,387

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

3. Income from donations and legacies

Unrestricted £ Donations 714,620 Grants & Trusts 194,922 Community fundraising activities 402,776 Legacies 1,631,795 Total 2,944,113	Restricted £ 448 44,000 - - 44,448	2022 Total £ 715,068 238,922 402,776 1,631,795 2,988,561	2021 Total £ 652,655 288,532 194,051 1,367,491
			2,502,729

As at 31 March 2022 the charity had been notified of several legacies, the values of which were uncertain as the executors were awaiting confirmation of other claims on the estate and may also be in the process of realising assets such as residential property. The estimated total of these legacies could be up to £1,126,000. None of these legacies have been accrued in the financial statements.

St Michael’s received personal protective equipment from the NHS. It has not been possible to reliably estimate the value of these items and they are therefore not included in donations above.

4. Income from charitable activities

Unrestricted £ Nursing & medical care 774,770 Grants from grant making trusts - Hospice at Home 1,118,781 NHS England - Other care services 3,964 Pharmacy supplies 144,665 Education and training 61,391 Total 2,103,571	Restricted £ - 36,000 - 1,116,500 - - - 1,152,500	2022 Total £ 774,770 36,000 1,118,781 1,116,500 3,964 144,665 61,391 3,256,071	2021 Total 913,033 4,380 1,228,203 2,246,143 46,000 158,814 16,025
			4,612,598

£2,012,383 (2020/21: £2,316,254) was received from the Herefordshire Clinical Commissioning Group. £29,796 (2020/21: £29,796) was received from Powys Local Health Board. £1,116,500 was received from NHS England (2020/21: £2,246,143). The NHS England awarded funding to allow St Michael’s to make available bed capacity and community support from December 2021 to March 2022 to provide support to people with complex needs in the context of the COVID-19 situation. £4,400 was received from the Worcestershire Clinical Commissioning Group (2020/21: £nil) for the provision of Advanced Communication Skills training. £24,900 (2020/21: £ nil) was received from Health Education England towards Registered Nurse Degree Apprenticeships.

There were no unfulfilled conditions or other contingencies attached to these income receipts.

5. Income from other trading activities

Unrestricted £ Fundraising events 229,094 Lottery 387,855 Retail shops 2,987,159 Other 24,078 Total 3,628,186	Restricted £ 270 - - - 270	2022 Total £ 229,364 387,855 2,987,159 24,078 3,628,456	2021 Total £ 177,776 321,812 774,543 10,171
			1,284,302

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

6. Income from investments

Income from investments
Bank interest received Investment interest & dividends Rental income Total	Unrestricted £ 200 140,316 28,850 169,366	Restricted £ - - - -	2022 Total £ 200 140,316 28,850 169,366	2021 Total £ 1,059 92,155 27,433
				120,647

7. Other Income

Unrestricted £ Government Grants – Coronavirus Job Retention Scheme 6,095 Government Grants – Retail Support 63,337 Crematorium Fees 8,364 Disposal of fixed assets 300 Other 6,500 Total 84,596 Net income for the year This is stated after charging: Depreciation Net profit on disposal of fixed asset Operating lease rentals: - property - other Auditor’s remuneration: - audit - other services Interest receivable	2022 Restricted Total £ £ - 6,095 - 63,337 - 8,364 - 300 - 6,500 - 84,596 2022 £ 469,397 300 274,147 18,628 14,050 1,960 200	2021 Total £ 424,292 481,657 6,888 - 1,583
		914,420
		2021 £ 486,002 - 271,972 18,922 13,420 1,925 1,059

8. Net income for the year

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

9. Analysis of expenditure Cost of raising funds £ Staff costs (Note 10) 1,382,876 Medical Consultants - Other Staff Costs 8,941 Retail Purchases 74,586 Lottery Prizes 82,871 Events 48,370 Community 22,178 Investment Management Fees 11,337 Education 486 Communications 5,152 Premises & Equipment 398,213 Transport & Travel 39,189 Telephones & Computers 59,639 Catering & Cleaning 75,585 Professional Fees 38,819 Depreciation 73,896 Medical & Nursing Supplies - Other Supplies & Services 94,660 2,416,798 Support costs 321,492 Governance costs 2,880 Total expenditure 2022 2,741,170 2,168,750	9. Analysis of expenditure Cost of raising funds £ Staff costs (Note 10) 1,382,876 Medical Consultants - Other Staff Costs 8,941 Retail Purchases 74,586 Lottery Prizes 82,871 Events 48,370 Community 22,178 Investment Management Fees 11,337 Education 486 Communications 5,152 Premises & Equipment 398,213 Transport & Travel 39,189 Telephones & Computers 59,639 Catering & Cleaning 75,585 Professional Fees 38,819 Depreciation 73,896 Medical & Nursing Supplies - Other Supplies & Services 94,660 2,416,798 Support costs 321,492 Governance costs 2,880 Total expenditure 2022 2,741,170 2,168,750	Charitable Activities Inpatient Care In reach / Day Care Supportive & Rehab Care Hospice at Home & Community Education & Training Governance costs Support costs 2022 Total 2021 Total £ £ £ £ £ £ £ £ £ 2,139,282 229,815 390,154 1,040,344 24,180 - 701,6725,908,323 5,409,473 164,547 34,227 - - - - - 198,774 239,407 68,004 439 119,402 10,944 421 - 23,745 231,896 190,930 - - - - - - - 74,586 22,074 - - - - - - - 82,871 78,000 - - - - - - - 48,370 25,588 - - - - - - - 22,178 5,611 - - - - - - - 11,337 12,246 11,352 81 81 4,054 162 - - 16,216 7,253 3,864 322 322 2,576 644 - - 12,880 9,745 24,094 61 61 127 951 - 149,613 573,120 546,601 440 194 827 40,525 - - 5,459 86,634 70,719 27,537 5,957 6,632 34,671 1,713 - 177,713 313,862 283,277 84,759 537 537 537 - - 32,176 194,131 133,385 123 - 5,063 - - 14,050 14,163 72,218 32,249 26,843 429 1,797 17,042 155 - 349,235 469,397 486,002 193,666 - 144 4,137 - - - 197,947 222,648 14,108 1,121 3,324 2,241 6 - 114,476 229,936 163,203
	2,416,798 321,492 2,880	2,758,619 273,183 528,344 1,157,198 28,232 14,050 1,568,2528,744,676 7,938,411 784,126 39,206 15,682 392,063 15,683 - (1,568,252) - - 7,025 351 141 3,512 141 (14,050) - - -
	2,741,170	3,549,770 312,740 544,167 1,552,773 44,056 - - 8,744,676 -
	2,168,750	3,364,413 309,664 516,489 1,541,571 37,524 - - - 7,938,411

Total expenditure 2021

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

10. Staff costs and numbers

Staff costs were as follows:

Salaries and wages Redundancy and termination costs Social security costs Pension contributions – defined benefit scheme Pension contributions – defined contribution schemes	2022 £ 5,088,605 - 391,494 182,919 245,305 5,908,323	2021 £ 4,632,353 557 370,625 184,038 221,900
		5,409,473

The following number of employees received employee benefits (excluding employer national insurance and pension costs) during the year between:

		2022	2021
		No.	No.
£60,000	- £69,999	3	1
£80,000	- £89,999	1	1

The charitable company considers its key management personnel during the year to comprise the Trustees and the Strategic Management Team - who are the Chief Executive and three other key directors, one of which is contracted with the local NHS Trust and included in Medical Consultants costs and not staff costs above. The total cost (including employer national insurance costs and pension contributions) of the key management personnel was £397,481 (2020/21: £423,949). The Trustees were not paid nor received any other benefits from employment with St Michael’s in the year (2020/21: £nil).

11. Staff numbers

The average number of employees (head count based on number of staff employed) and whole-time equivalents (WTE) during the year were as follows:

Inpatient Care In reach / Day Care Services Supportive & Rehabilitative Care Hospice at Home Externally provided education and training Support Raising funds	2022 Head Count 84 14 14 33 1 25 70 241	2022 WTE 53 8 10 24 1 19 46 161	2021 Head Count 78 15 13 34 1 23 65 229	2021 WTE 52 9 9 25 1 16 41
				153

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

12. Related party transactions

During the year, the charitable company entered into transactions for the purchase of services as described below:

Humfrys & Symonds (Trustee Mr D Campion who served during the year is a director) for the purchase of professional services totalling £408 (2020/21: £nil). £nil was outstanding at 31st March 2022 (2020/21: £nil).

One family member of a Trustee who served during the year (Mrs J Winney) was employed by St Michael’s on standard employment terms and conditions – their total remuneration (including employer national insurance costs and pension contributions) was £6,334 (2020/21: £15,789)

During the year, a management charge was made by the charitable company to SMH Trading Limited of £135,950 excluding VAT (2020/21: £28,073). At the end of the year gift aid of £8,083 (2020/21: £23) was payable by SMH Trading Limited to the charitable company. The total year-end balance owed to the charitable company was £112,026 (2020/21: £28,553).

13. Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

14. Tangible fixed assets – Group and Charity

Medical &

			Medical &
Cost At the start of the year Additions in year Transfers in year Disposals in year At the end of the year Depreciation At the start of the year Charge for the year Disposals in year At the end of the year Net book value At the end of the year At the start of the year	Freehold land & buildings Assets in the course of construction £ £ 11,126,076 113,692 40,880 163,182 175,047 (175,047) - - 11,342,003 101,827 1,193,361 - 254,147 - - - 1,447,508 - 9,894,495 101,827 9,932,715 113,692	Leasehold property £ 290,139 1,680 - (18,661) 273,158 212,185 28,489 (6,733) 233,941 39,217 77,954	nursing equipment & beds £ 223,142 11,062 - - 234,204 139,973 12,756 - 152,729 81,475 83,169	Fixtures, fittings & equipment £ 646,300 13,943 - - 660,243 516,271 64,748 - 581,019 79,224 130,029	Information technology £ 133,975 37,959 - - 171,934 98,043 23,639 - 121,682 50,252 35,932	Plant & machinery £ 1,183,996 11,044 - - 1,195,040 261,625 62,658 - 324,283 870,757 922,371	Motor vehicles £ 259,460 - - (28,159) 231,301 176,014 22,960 (28,159) 170,815 60,486 83,446	Total £ 13,976,780 279,750 - (46,820)
								14,209,710
								2,597,472 469,397 (34,892)
								3,031,977
								11,177,733
								11,379,308

Land with a value of £499,789 (2020/21: £499,789) is included within Freehold Land and Buildings and is not depreciated. All the above assets are used for charitable purposes.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

15. Investments Properties – Group and Charity

Fair value at the start of the year Revaluation during the year Fair Value at the end of the year	2022 £ 665,000 35,000 700,000	2021 £ 615,000 50,000 665,000

The properties were last valued on an open market valuation basis on 9[th] May 2022 by Alister Walshe FNAEA FNAVA of Stooke, Hill & Walshe. Being a previous related party, and now Life Patron, the Board of Trustees have approved the valuation.

16. Investments – Group and Charity

Fair value at the start of the year Transfers Additions at cost Disposal proceeds Net gain on change in fair value Investments - cash holdings Fair value at the end of the year Investments comprise: UK Fixed Interest International Fixed Income Equities Alternative Investments Cash Funds Investment in subsidiary undertakings incorporated in the UK Investment in Hospice Quality Partnership	2022 £ 8,743,630 - 1,515,654 (1,368,020) 7,127 8,898,391 16,124 8,914,515 2022 £ 3,959,952 405,068 2,107,884 1,454,772 986,828 8,914,504 1 10 8,914,515	2021 £ 5,511,779 - 4,412,956 (1,830,366) 649,261
		8,743,630 24,192
		8,767,822
		2021 £ 3,796,540 493,618 1,508,513 1,332,949 1,636,192
		8,767,811 1 10
		8,767,822

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

17. Subsidiary undertakings

The charitable company owns the whole of the issued ordinary share capital of SMH Trading Limited, a company registered in England, company number 06545386. St Michael’s uses the subsidiary for non-primary purpose trading activities.

All activities are consolidated on a line-by-line basis in the Statement of Financial Activities. The Trustee Ms P A Greenwood who served during the year is also a director of the subsidiary. Available profits are gift aided to the charitable company within 9 months of the year-end.

The table below shows a summary of the subsidiary’s results.

Turnover Cost of sales Gross profit Distribution costs Administrative expenses Other operating expenditure Operating profit Taxation Profit after taxation Retained earnings at the start of the year Profit for the year Gift aid donation Retained earnings at the end of the year The aggregate of the assets, liabilities and funds was: Assets Liabilities Funds: Share capital Retained profits	2022 £ 235,086 (88,903) 146,183 (54,088) (81,862) (2,150) 8,083 - 8,083 563 8,083 (8,083) 563 128,752 (128,188) 564 1 563 564	2021 £ 55,866 (25,680)
		30,186 (11,169) (16,904) (2,090)
		23 -
		23 563 23 (23)
		563
		32,365 (31,801)
		564
		1 563
		564

Distribution costs and administrative expenses totalling £135,950 (2020/21: £28,073) represent a management charge from the parent entity. Amounts owed to the parent undertaking are shown in note 20.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

17. Subsidiary undertakings (continued)

The charitable company also owns the whole of the issued ordinary share capital of St Michael's Hospice Development Company Limited, a company registered in England, company number 07039211. St Michael’s used the subsidiary for the redevelopment of the hospice buildings and surroundings.

All activities are consolidated on a line-by-line basis in the Statement of Financial Activities. The Trustee Mr D Teague who served during the year is also a director of the subsidiary. Available profits are covenanted to the charitable company as appropriate within 9 months of the year-end. The company is to become dormant.

A summary of the results of the subsidiary is shown below:

Turnover Cost of sales Gross profit Other operating expenditure Operating profit / (loss) Taxation Profit / (Loss) after taxation Retained (losses) / earnings at the start of the year Profit / (Loss) for the year Gift aid donation Retained profit / (losses) at the end of the year The aggregate of the assets, liabilities and funds was: Assets Liabilities Funds: Share capital Retained losses	2022 £ - - - 145 145 - 145 (145) 145 - - 1 - 1 1 - 1	2021 £ - -
		- (35)
		(35) -
		(35) (110) (35) -
		(145)
		856 (1,000)
		(144)
		1 (145)
		(144)

St Michael’s Hospice Development Company Limited is exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of s479A.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

18. Parent charity

The parent charity’s gross income and results for the year are disclosed as follows:

Gross income and gains on investments Gross expenditure Net income	2022 £ 10,078,125 8,653,769 1,424,356	2021 £ 10,106,187 7,910,606
		2,195,581

19. Stock

Goods for resale	Group 2022 2021 £ £ 16,801 20,404 16,801 20,404	Charity 2022 2021 £ £ 2,178 4,076 2,178 4,076	Charity 2022 2021 £ £ 2,178 4,076 2,178 4,076
			4,076

20. Debtors

Debtors
Trade debtors Amounts owed by group undertaking Other debtors Prepayments Accrued income	Group 2022 2021 £ £ 46,176 23,075 - - 102,551 90,958 96,206 103,303 1,790,191 1,050,259 2,035,124 1,267,595	Charity 2022 2021 £ £ 46,176 22,063 112,026 29,553 102,551 90,958 96,206 103,303 1,790,191 1,050,259 2,147,150 1,296,136
			1,296,136

Trade debtors are stated after impairment provision totalling £nil (2020/21: £nil). Except for listed investments, all the group’s financial instruments, both assets and liabilities, are measured at settlement value. The carrying values of these are shown above and in note 21 below.

21. Creditors: amounts due within one year

Bank overdraft Trade creditors Taxation and social security Other creditors Accruals Deferred income	Group 2022 2021 £ £ 5,725 7,720 234,357 88,947 99,099 89,365 93,790 80,529 335,678 181,569 211,746 215,513 980,395 663,643	Charity 2022 2021 £ £ 5,725 7,720 227,953 88,017 99,099 89,365 86,859 80,062 332,851 179,718 211,746 215,513 964,233 660,395	Charity 2022 2021 £ £ 5,725 7,720 227,953 88,017 99,099 89,365 86,859 80,062 332,851 179,718 211,746 215,513 964,233 660,395
			660,395

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

22. Deferred income

Deferred income comprises advance ticket sales for the lottery, fundraising income for events that did not occur until after the balance sheet date and a legacy deferred for legal reasons. Except for the legacy of £128,500 (2020/21: £128,500), all the deferred income of the previous year was released in the current year.

current year.
Balance at the beginning of the year Amount released to income in the year Amount deferred in the year Balance at the end of the year	Group 2022 2021 £ £ 215,513 211,376 (87,013) (82,876) 83,246 87,013 211,746 215,513	Charity 2022 2021 £ £ 215,513 211,376 (87,013) (82,876) 83,246 87,013 211,746 215,513
			215,513

23. NHS pension scheme

The NHS Pension Scheme is an unfunded occupational scheme backed by the Exchequer, which is open to all NHS employees and certain employees of other approved organisations allowed under the direction of the Secretary of State in England and Wales. St Michael's is an approved organisation.

Past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.

In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years.” An outline of these follows:

a) Accounting valuation

A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2022, is based on valuation data as 31 March 2021, updated to 31 March 2022 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

b) Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

23. NHS pension scheme (continued)

The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019 to 20.68% (including a 0.08% scheme administration levy) of pensionable pay and employees contribute on a tiered scale from 5% - 14.5% of their pensionable pay depending on total earnings. Prior to this the employer contribution rate payable was 14.38%. The government has committed to cover this cost increase for a certain category of employer’s, including St Michael’s, recurring annually until 31 March 2023.

The 2016 funding valuation also tested the cost of the Scheme relative to the employer cost cap that was set following the 2012 valuation. There was initially a pause to the cost control element of the 2016 valuations, due to the uncertainty around member benefits caused by the discrimination ruling relating to the McCloud case.

HMT published valuation directions dated 7 October 2021 (see Amending Directions 2021) that set out the technical detail of how the costs of remedy are included in the 2016 valuation process. Following these directions, the scheme actuary has completed the cost control element of the 2016 valuation for the NHS Pension Scheme, which concludes no changes to benefits or member contributions are required. - The 2016 valuation reports can be found on the NHS Pensions website at https://www.nhsbsa.nhs.uk/nhs pension-scheme-accounts-and-valuation-reports.

All pension charges are charged to unrestricted funds in line with the fund out of which the wages and salaries are paid. The amount charged to the Statement of Financial Activities in the year was £182,919 (2020/21: £184,038). Employee and employer contributions outstanding as at 31 March 2022 was £29,744 (2020/21: £26,044).

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

24. Analysis of group net assets between funds (current year)

					General				Total
					unrestricted	Designated	Restricted		funds
					£	£	£		£
	Tangible fixed	assets			1,283,238	9,894,495	-	11,177,733
	Investments				9,614,515	-	-	9,614,515
	Net current assets				2,004,542	1,299,668	137,430	3,441,640
	Net assets at the end of the
	year				12,902,295	11,194,163	137,430	24,233,888
24a	Analysis of group		net assets between funds (prior year 2021)
					General				Total
					unrestricted	Designated	Restricted		funds
					£	£	£		£
	Tangible fixed	assets			1,332,901	10,046,407	-	11,379,308
	Investments				9,432,822	-	-	9,432,822
	Net current assets				361,579	1,531,191	104,487	1,997,257
	Net assets at the end of the
	year				11,127,302	11,577,598	104,487	22,809,387
25.	Movements in group funds (current year)
		At		1 April	Income	Expenditure	Transfers	Gains /		At 31
				2021				(Losses)	March 2022
				£	£	£	£			£
Restricted	funds:
Patient care				82,363	1,152,947	(1,128,165)	(4,556)	-		102,589
Funds for other specific				22,124	44,271	(6,554)	(25,000)	-		34,841
items
Total restricted funds			104,487		1,197,218	(1,134,719)	(29,556)	-		137,430
Unrestricted funds:
Designated funds
Property fund		10,046,407			-	(254,147)	102,235	-	9,894,495
Capital investment fund			361,191		-	(3,444)	(176,977)	-		180,770
Development fund		1,170,000			-	(28,349)	(22,753)	-	1,118,898
Total designated
funds		11,577,598			-	(285,940)	(97,495)	-	11,194,163
General funds		11,127,302			8,929,832	(7,324,017)	127,051	42,127	12,902,295
Total unrestricted funds		22,704,900			8,929,832	(7,609,957)	29,556	42,127	24,096,458
Total funds at 31 March 2021		22,809,387			10,127,050	(8,744,676)	-	42,127	24,233,888

Transfers represent the release of restricted and designated funds as they are expended on capital items.

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

25. Movements in group funds (current year) (continued)

Purpose of restricted funds - Restricted funds totalling £137,430 (2020/21: £104,487) comprise:

i Patient Care - In addition to £82,363 (2020/21: £99,426) at the start of the year restricted for care purposes an additional £1,152,947 (2020/21: £2,246,346) was received during the year from individual donations and NHS England via Hospice U.K. £1,128,165 (2020/21: £2,263,409) was expended for these purposes during the year. A further £4,556 was expended on capital items and released to general funds.
ii Funds for other specific items - In addition to £22,124 (2020/21: £21,832) at the start of the year, a further £44,271 (2020/21: £58,460) was received from grant-making trusts and individual donations. £6,554 (2010/20: £8,168) was expended on these purposes during the year. A further £25,000 was expended on capital items and released to the property fund.

Purpose of designated funds - Designated funds totalling £11,194,163 (2020/21: £11,577,598) comprise:

i The property fund This equates to the net book value of the freehold land and buildings. The transfer of £102,235 represents capital expenditure of £61,355 on the car park project utilised and released from the capital investment fund, £26,002 on garden pathway widening utilised and released from restricted fund and capital investment funds, and £14,878 expended on other capital items.

ii The capital investment fund – In addition to £361,191 (2020/21: £216,289) at the start of the year £3,444 was expended during the year. Capital expenditure of £61,355 was utilised and released to the property fund re the car park project, £101,828 was utilised and released to general funds relating air-conditioning installation, and £13,795 was expended on other capital items.

iii The development fund - £1,170,000 was designated in the 2020/21 financial year to support workforce and care service development initiatives. £28,349 was expended for these purposes during the year with a further £22,753 expended on capital items and released to general funds.

25a. Movements in group funds (prior year 2021)

Restricted funds: Patient care Funds for other specific items Total restricted funds Unrestricted funds: Designated funds Property fund Capital investment fund Development fund Total designated funds General funds Total unrestricted funds Total funds at 31 March 2020	At 1 April 2020 £ 99,426 21,832 121,258 10,180,614 216,289 - 10,396,903 10,095,680 20,492,583 20,613,841	Income £ 2,246,346 58,460 2,304,806 - - - - 7,129,890 7,129,890 9,434,696	Expenditure £ (2,263,409) (8,168) (2,271,577) (247,899) (2,238) - (250,137) (5,416,697) (5,666,834) (7,938,411)	Transfers £ - (50,000) (50,000) 113,692 147,140 1,170,000 1,430,832 (1,380,832) 50,000 -	Gains / (Losses) - - - - - - - 699,261 699,261 699,261	At 31 March 2021 £ 82,363 22,124
						104,487
						10,046,407 361,191 1,170,000
						11,577,598 11,127,302
						22,704,900
						22,809,387

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

26. Reconciliation of net income to net cash flow from operating activities

Net income for the reporting period (as per Consolidated Statement of Financial Activities) Depreciation Gains on investments Legacy asset transferred to fixed assets Dividends, interest and rent from investments Profit on disposal of fixed assets Loss on disposal of fixed assets Decrease / (Increase) in stocks (Increase) / decrease in debtors Increase in creditors Net cash provided by operating activities	2022 £ 1,424,501 469,397 (42,127) - (169,366) (300) 11,928 3,603 (767,529) 240,098 1,170,205	2021 £ 2,195,546 486,002 (699,261) (2,200) (120,647) - - (2,258) 502,785 8,624
		2,368,591

27. Analysis of cash and cash equivalents

Cash at bank and in hand Bank overdrafts Increase in the year	At 1 April 2021 £ 1,372,901 (7,720) 1,365,181	Cash flows £ 997,209 1,995 999,204	At 31 March 2022 £ 2,370,110 (5,725)
			2,364,385

28. Operating lease commitments

The group's and charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Less than one year Later than one to five years Over five years	Property 2022 2021 £ £ 196,874 234,732 332,612 515,286 71,625 132,625 601,111 882,643	Equipment 2022 2021 £ £ 18,778 18,640 22,625 41,169 - - 41,403 59,809	Equipment 2022 2021 £ £ 18,778 18,640 22,625 41,169 - - 41,403 59,809
			59,809

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2022

29. Capital commitments

At the balance sheet date, the group and charity had committed to £nil (2020/21: £33,468) in respect of the expansion of St Michael’s car park facilities.

30. Financial Instruments

Except for listed investments, all the group’s financial instruments, both assets and liabilities, are measured at settlement value. Listed investments are shown at market value. Financial assets include cash at bank and in hand, trade and other debtors and accrued income. Financial liabilities include bank overdrafts, trade and other creditors and accruals. The carrying values of these are shown in notes 16, 20, 21 and 27.

31. Legal status of charity

St Michael’s is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £2.

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