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2024-03-31-accounts

Wli, . , =, St Michael’s incorporating the oF) Hospice Freda Pearce Foundation

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Dr RG Miller
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Annual Report and Consolidated Financial Statements For the year ended 31st March 2024

Company Registration Number: 01634942 (England and Wales) Charity Registration Number: 511179

st-michaels-hospice.org.uk W twitter.com/stmichaelshosp Fj] facebook.com/stmichaelshospicehereford

St Michael'se id Hospicee

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.

lf 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

2

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

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St Michael's Hospice (incorporating the Freda Pearce Foundation) For the year ended 31 March 2024 Reference and Administrative Information

CharityName St Michael's Hospice (incorporating The Freda Pearce Foundation) St Michael's Hospice (incorporating The Freda Pearce Foundation)
Charity Number 511179
Company Number 01634942
Address of Registered St Michael's Hospice
Office Bartestree
Hereford, HR1 4HA
Country of Registration England and Wales
Country ofIncorporation United Kingdom
Trustees Trustees,who are also directors undercompany law,who served during the
yearand up tothe date ofthis reportwere as follows:
MrD RTeague, Chair
Revd Preb K B Garlick (resigned 6" December2023)
Ms PA Greenwood
Mrs C J Winney
Mr E D Drummond
Mr!DA Entwisle
MrCA Akle
Dr P
F Downey
Associate Trustees MrG James (appointed 6'"June 2024)
Mrs D Holloway (appointed 6"June2024)
MrsR Kirk (appointed 17"July2024)
Life Patrons DrR G Miller(deceased 23rd January 2024) January 2024)
Dr J
J Kramer BEM
MrA J Walshe
Chief Executive Officer Mr ML
Keel (retired 315' March 2024)
MrM JD
Fellows (appointed 1%April		 2024)
Strategic Management Mrs EJ Cotton, Finance and Facilities Director
Team Mrs RS Jones, Income Generation, Marketing and Communications Director
MrB Paul, Quality and Care Strategy Director (resigned 27" September2023)
Mrs Lisa O'Neil, People Director (appointed 6" June2024)
Company Secretary MrML Keel (retired 318 March 2024)
MrM JD
Fellows (appointed 1 April		 2024)
Bankers The Royal Bank ofScotland PLC Barclays Bank PLC
Drummond House 54 High Street
1 Redheughs Avenue Worcester
Edinburgh Worcestershire
EH12 9JN WR1 2QQ
IndependentAuditor Crowe U.K, LLP
StatutoryAuditor
Fourth Floor
St James House
StJames Square
Cheltenham
GL503PR

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St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees _For00the year ended 37.March 2024

The Trustees of St Michael's Hospice (‘St Michael's’) present their report and the audited financial statements for the year ended 31 March 2024. 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.

Trustee annual appraisals include whether longer serving Trustees remain fresh and up to date, relevant and have not lost their drive to perform at the highest level.

A new level of Associate Trustee has been created to compliment the Board and to assist in the process of Trustee succession, Associate Trustees are expected to attend Board meetings and the relevant Committee meetings. They do not have voting rights. The intention is that this role will be a way of introducing those who are keen to provide their skills and experience to St Michael's, but who who do not have the time the time time or wish wish to initially become trustees. Three Associate Associate Trustees have been appointed.

The Trustees of St Michael’s are charity Trustees for the Michael's, but who who do not have the time the time time or wish wish to purpose of the Charities Act and are Directors of become trustees. Three Associate Associate Trustees have been St Michael's and Directors for the purposes of the appointed. Companies Act. The Trustees form the Trustee Board of St Michael's. Although the Strategic Management Team's _Trustees serve for terms of 3 years before retiring. They (SMT) job titles include the word ‘Director’, these people © Can be appointed for three successive terms. On are not Directors within the meaning of the Companies the Companies Companies completion of a a third term term they can be reappointed only Act. in exceptional circumstances. The Board considers these

are not Directors within the meaning of the Companies the Companies Companies completion of a a third term term they can be reappointed only Act. in exceptional circumstances. The Board considers these situations on a case-by-case basis. 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 , iy : and how it does it. The overriding duty is to act in good St Michael's is the parent undertaking of a group faith within charity law and to make sure St Michael's consisting of, pursues its aims (as set out in the governing document); ed SMH Trading Limited - St Michael's. : uses this, uses its assets only to pursue those aims; and acts for its subsidiary for non-primary purpose trading community. It does this by: activities. * St Michael’s Hospice Development Company ¢ Safeguarding and promoting the values and Limited - St St Michael's used this subsidiary for mission of St Michael's; redeveloping the hospice buildings and * Determining the strategy and structure of surroundings. This company company is dormant. St Michael's; ¢ Ensuring St Michael's operates in an effective, Both subsidiaries are English registered companies and responsible, and and accountable manner, securing Gift Aid Aid all available profits to St St Michael's where future sustainability; applicable.

¢ Safeguarding and promoting the values and Limited - St St Michael's used this subsidiary for mission of St Michael's; redeveloping the hospice buildings and * Determining the strategy and structure of surroundings. This company company is dormant. St Michael's; ¢ Ensuring St Michael's operates in an effective, Both subsidiaries are English registered companies and responsible, and and accountable manner, securing Gift Aid Aid all available profits to St St Michael's where future sustainability; applicable. e Ensuring the effective functioning of the Board of Trustees; The Board retains ultimate operational responsibility and * Ensuring the organisation meets all statutory sets the aims, policies, and objectives of St Michael's requirements. together with performance monitoring. It has however The devolved authority for its strategic implementation, Trustee Board is made up of unremunerated attainment, performance and day-to-day running to the volunteers. During the year, the Trustee Board met six Chief Executive Officer and his senior management team times for their regular general meetings, twice in who are also responsible for St Michael's meeting all its extraordinary meetings for special business and once for statutory and contractual obligations. a Strategic Planning Day. In addition to these, there were sixteen subcommittee meetings. The Trustee Board is St Michael's Governance Manual describes these made up of members according to an analysis that arrangements and was updated in 2024 to reflect the identifies skills, experience and qualities needed for the inclusion of the Associate Trustee role. A full review will good governance of St Michael's. Trustees routinely be carried out in 2025 with reference being paid to the review the composition of the Board, considering the Charity Governance Code and Charity Commission need for the right blend of skills, knowledge, experience, guidance. St Michael's has a comprehensive range of and diversity. Just as importantly the Trustees need to fit operational policies and procedures that it maintains in together to work constructively and effectively as a Board _ line with the requirements of the Care Quality and with the management team. The Board recognises Commission, which regulates the clinical activity of St the importance of achieving the right balance on the Michael's, and the Gambling Commission that regulates Board between new blood and stability. the Lottery and the Fundraising Regulator.

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St Michael's Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2024

Objectives and Activities

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

  1. The provision of 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 40 years of

eee working in palliative care. St Michael's also ensures its own staff and volunteers have opportunities to

St Michael's knows it cannot do all of this on its own and develop their skills, knowledge, and competence as so works with communities, groups, and organisations to these have a direct bearing on the quality of support support them and help them understand the importance St Michael’s can provide. of good palliative care and how they can play their part to — . PAS : ensure there is a spectrum of services to meet patient 5. Underpinning the main services is the Supportive Care and family needs. service, which social workers, bereavement care workers, spiritual workers and counsellors deliver.

St Michael's also recognises it must help change They offer this to all patients and families who access people's perception and understanding of end-of-life care the Inpatient Unit, Day services and Hospice at Home as well as their readiness to talk about it — not only their services. These services provide the vital social and own plans but their families and friends too. psychological elements of support that characterises holistic care and to which St Michael's aspires. The

St Michael's encourages patients (with their families holistic approach not only considers the patient's where appropriate) to produce a plan that describes their condition, life, and circumstances, but also supports needs and preferences as they come to the end of their and cares for the patient's family and friends. The life. This helps ensure they receive the right care, in the Supportive and Rehabilitative Care service also right place, delivered by the right people. collaborates with another charity called Hope Support, to provide care and support to children who are close to our patients.

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St Michael's Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2024 eaeabe hd eR

The facilities teams (catering, housekeeping and The Trustees have referred to the guidance contained in maintenance) provide essential support for the principal the Charity Commission's general guidance on public activities. The management and administration team benefit when reviewing St Michael's objectives and in provide the necessary governance, oversight and planning its future activities. operational management plus finance, human resources (HR), information technology (IT) and administrative The Trustees consider how planned activities will support. The fundraising and retail teams maintain the contribute to the objectives that have been set; reporting necessary income needed by St Michael's to deliver its the success of each key activity and the benefits services, as recurrent statutory funding (from Health and _St Michael's has brought to those groups of people that it Social Care sources — the NHS) remains inadequate. is set up to help, and the wider public benefit. The St Trustees regularly review the objectives and activities of Michael's has over 800 volunteers who provide regular — St Michael's ensuring they remain focused on its stated support to all service areas. Many more provide ad- hoc purposes. support at events etc. or volunteer via their workplaces, communities, and other organisations for the benefit of The Trustees continue to recognise three strategic St Michael's. The contribution these people make is vital intentions underpinned by four key areas in which to St Michael’s success and survival. These volunteers St Michael's must continue to develop and excel to support 286 employed staff (including bank staff) to successfully deliver the objectives and activities. provide the quality care service and the required support services for patients and their families to meet and go The Strategic Strategic Report that follows that follows follows sets out our ongoing ongoing beyond regulatory requirements. strategy and looks at what what St Michael's has achieved,

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

Strategic Report

strategy

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St Michael's Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2024

| |

Our Hospice at . Home service | supported 806 people making / / 11,961 visits

The estimated valuefiat o ft Our volunteer £2.2 ATA million

Wehad 29/7 oe We admissions, up 2.4% on ; last year with the | average length of stay / reducing to 18 days We have supported and cared for 23 “a Pe people in 2023/24, up 6.3%

The Santa’s Grotto, held in our Hospice KG0A nsec | 2023/24,up 227% =

,Our shops ‘ : delivered a profit 5 margin of 30% /

Over

On average 1 01 new patients per month were referred / S to our services /) Ny mioeX throughout 2023/24

were supported by again achieved One Day Services, an Star’ status as a good increase of 8.6% organisation to work for

|

|

£823,000 income was generated by Events & Community fundraising

5315 | : members |

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St Michael's Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2024 me Ne ead LS A i le

Achievements and Performance 2023/24

St Michael's has once again delivered more services to more people during the last year. St Michael's, like Others, msn: has been challenged by inflation and increased costs especially in fuel, utilities, wages and medical supplies. It | St St Michael’s has supported and cared for 2,353 people is the people of St Michael's that makes the charity what 2023/24 (2022/23: 2,214). Referrals to our services services it is, and the unwavering fortitude, resourcefulness, remained high, averaging 101 new patients per month month ingenuity and dedication of volunteers and staff throughout the year. continues to ensure vital care and support is provided to those who need who need need it and at the the highest quality in spite of We know that that people want to want to to receive their care their care care in these challenges. different places and settings and not always at or by

| St St Michael’s has supported and cared for 2,353 people in 2023/24 (2022/23: 2,214). Referrals to our services services remained high, averaging 101 new patients per month month throughout the year.

those who need who need need it and at the the highest quality in spite of We know that that people want to want to to receive their care their care care in many these challenges. different places and settings and not always at or by The St Michael's. We want to ensure that people, wherever Income Generation team continues to find ways in they are, receive high-quality palliative care. For those which to grow income in order to balance the increasing | who chose hospice services for their end of life and costs, a significant achievement under difficulteconomic _ palliative care, St Michael's saw increasing demand, with circumstances. We continue to work with the NHS patients having increasingly complex diagnoses. Herefordshire and Worcestershire Integrated Care Board (ICB) and our hospice colleagues in Worcestershire to The (IPU) received 358 requests for implement a fairer, more consistent and sustainable admission, which resulted in 264 people having 297 funding stream for Hospices in Herefordshire and admissions (some people were admitted more than Worcestershire. once). This is an increase of 2.4% on 2022/23, with a slight reduction in the average length of stay increasing our capacity to admit.

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |2023/24|2022/23|2021/22|2020/21|2019/20| |Inpatient|Unit Activity|%|No.|%|No.|%|No,|%|No.| |Admissions|297|290|306|273|281| |Admitted|From:| |Home|155|52%|166|58%|181|59%|191|70%|||201|72%| |Hospital|130|44%|120|41%|121|40%|79|29%|67|24%| |Other|12|4%|4|1%|4|1%|3|1%|13|4%| |Total|297|100%|290|100%|306|100%|273|100%||}|281|100%| |Location|at end|of|stay:| |Died|201|68%|214|74%|214|70%|171|65%|||190|67%| |Home|73|24%|63|22%|79|26%|89|30%|72|26%| |Hospital|-|:|1|:|:|*|1|-|-|-| |Other|23|8%|12|4%|13|4%|12|5%|19|7%| |Total|297|100%|290|100%|306|100%|273,|=+100%|||281|100%| |Average|Length|of admission|18|19|16|19|19| |Occupancy|(target|90%)|90%|92%|82%|89%|91%| |Hospice|at Home|Activity| |Number of People Supported|806|836|604|716|758| |Number of Visits|Made|11,561|12,296|10,116|10,198|10,520|

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St Michael's Hospice (incorporating the Freda Pearce Foundation)
Report of the Trustees
For000 the yearended31 March 2024
The average length of each stay in the inpatient unit was | ) = FF
18 days (2022/23: 19 days). We are seeing some issues “
of delayed discharge because of a lack of services for ' - s
discharged patients. Not all referrals result in admission. . 2 ay
There are various reasons why this might happen (the } \ - (f
person's condition changes; they decide to receive home iy / | a) ‘
care instead; or they deteriorate suddenly and die before ei a a
the admission can be arranged), but in all cases 7 r| ~ Fe’ \
St Michael's will support the person with services % .
suitable to their situation.
Overall occupancy of the inpatient unit achieved our We continued to expand our reach into
target for the year at 90% compared to 92% last year. the community this year. We launched our New Days
This continuing high occupancy coupled with the bereavement choir open to anyone bereaved in
increasing complexity of patients (such as greater Herefordshire. We also initiated a project taking Art
multimorbidity and challenging symptoms) has led to an __—Therapy into Care Homes in Herefordshire, a specialist
increase in the intensity of work across nursing and intervention that helps support patients psychologically
the best possibleworkforcemedical services.continues care.Thetohardensureworkthat andpeoplededicationbenefitof from our and emotionally.‘ — —sa |
The continue with 122 | PP. ES % ¥ a
patients having a medical outpatient appointment Sy “2? ‘. = as
compared to 137 the previous year and 250 pre- a ‘> wat
pandemic. As resource allows St Michael's will look to 2 sy ees ak - c
support more non-malignant clinics. . et eh P =a &
re Seen AR . =a ae 3 te eee Ret ~ = :
Sai i ee The NHS commissioned vice
ipa 5 mah ete at eo | supported 806 patients during the year. This is an
= aol ~ Arg * £4 important service for those people who would prefer to
=\a ‘) ; \'Dy iy coxas i Tay. \ee12 reea closereceive to their their carefamily. at home This inis familiara slight reduction surroundingson 2022/23 and
: ee ate +" 98g predominantly driven by patient eligibility criteria of the
pets Sue a 2 he Salk commissioned service which is beyond our control.
Our Nursing Home Sister continues to support residential
groups remain as popular as ever, with and care homes in an advisory capacity, signposting
reach enhanced by the continuing use of telephone and those as appropriate to educational opportunities in the
video appointments. The number of people supported drive to widen the delivery of expert palliative care. 344
face-to-face by Day Services during the reporting period people have benefitted, and countless hospital
was 189. This compares with 174 people in 2022/23. admissions have been avoided. This role has been
instrumental in the Palliative Champions Programme,
The three core three core core services being offered are Day Hospice supporting changes in practice to improve patient care
(DH); Living Well Support (LW); and and Fatigue and and and outcomes in line with evidence-based care.
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The three core three core core services being offered are Day Hospice (DH); Living Well Support (LW); and and Fatigue and and Breathlessness Support (FAB). 2023/24 saw the successful launch of our new Bathing Service which benefits from a user-friendly hydraulic bathtub, allowing patients to relax and feel refreshed with an increased sense of wellbeing.

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 coordinators from 07.00hrs-22.00hrs every day. Outside of these hours, advice and advice and and support is delivered by the senior the senior nurses on the Inpatient Unit with with access to to medical support as required. An additional function of the the Coordination Hub is to to support patients on the the Inpatient Unit _waiting list when when a bed is not immediately available. This support ranges from from home visiting to telephone telephone advice.

Our Dementia Services expanded during the year with the —_ these hours, advice and advice and and support is delivered by the senior the senior expertise of our specialist Dementia and Wellbeing nurses on the Inpatient Unit with with access to to medical Services Sister. There are now support groups available support as required. An additional function of the the Cofor Dementia patients and those caring for people with ordination Hub is to to support patients on the the Inpatient Unit dementia, as well as personalised assistance and access _waiting list when when a bed is not immediately available. This to the wider Supportive Care services provided. support ranges from from home visiting to telephone telephone advice.

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St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2024

St Michael's Hospice continues to support the St Michael's has a diverse diverse range of income income streams, so so Thy iu movement through the is not reliant on any one one source of funds. funds. These include induction of, and delivery of training to, local coordinators + many different types different types types of fundraising fundraising (donations, legacies, enabling them to have the skills and the confidence to events, community, trusts, trusts, lottery, corporate); retail continue with their programmes of empowering income from our shop shop portfolio; investment income; communities to support each other before and after property rental; and some NHS income which remains death. inadequate.

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

=

: We have developed our management and leadership n : structure to ensure decision-making and responsibility is , pra\ as Close to the point of delivery as possible. We support Neen wm a nagers,ys to improvesupervisors,the thingsand welea d oersand in allensure areasour to seek St Michael's mmes eaetne stafPand supporters, staff and volunteers flourish in a positive and volunteers both at St Michael's and in other partner BUTUTiNg BEUPONTEML which x burn delivers the best organisations are competent and confident in the delivery care to our patients and families. of high-quality palliative care. The programme also . ioe . A management training, customer service courses and ffort de-by staff Trust : d volunt e withleadership skills acquisition. We continue to collaborate STOR DASGE Sy. SST TRIERS, ANG YOIUNIRSTS ae : our hospice colleagues in Worcestershire to deliver pntheatt fs INCOME, control bots, oi ones efficiencies education and training together to increase capacity and sh aut eaeeeakiten HeIVIRES WIE COREE SS BUPPOI widen the impact across the ICB area. We are also in the peti iiieiaiaaatatees ss 3 process of engaging with the Hospice UK ‘Volunteer to Career’ programme. Project Echo continues at St Michael's, and has been SS SS expanded to create ‘communities of practice’ to engage, support and educate health care professionals across a variety of care settings. We have also created ‘Palliative Champions’ through ECHO delivery and on-going support —_ St Michael's is reliant on having enough of targeting nursing and residential care settings across people (volunteers and paid staff) to delivertheitsrightobjectives Herefordshire. St Michael's continues to use this and activities; finding the best people is becoming harder platform to engage more with care homes and GPs. as demographic changes occur and there is a smaller pool from which to recruit professional staff. We have We have further developed developed our use use of ‘Bluestream’ ‘Bluestream’ e- continued our focus on improving our Human Resource learning platform, which enables staff and and volunteers to function to speed up systems and processes and receive most of their training their training training more flexibly and and automate as many as possible to free up staff and electronically, whilst recording completion levels. This volunteers to concentrate on their core roles. The annual ensures we meet we meet meet our regulatory requirements set by the by the the organisation-wide staff survey operated by Best Care Quality Commission Commission and we can we can can easily evidence evidence Companies gives us a confidential and impartial review this. of our staff engagement. In 2023/24 we once again achieved status as a good organisation to work for,

We have further developed developed our use use of ‘Bluestream’ ‘Bluestream’ e- learning platform, which enables staff and and volunteers to receive most of their training their training training more flexibly and and electronically, whilst recording completion levels. This ensures we meet we meet meet our regulatory requirements set by the by the the Care Quality Commission Commission and we can we can can easily evidence evidence this.

During the year we had 286 (2022/23: 258) staff, a equivalent to 190 (2022/23: 173) whole time equivalent posts. 166 (2022/23: 157) work directly in clinical and St Michael's continually seeks ways to increase its care areas and associated parts of the service. efficiency and effectiveness through monitoring and ; F benchmarking its suppliers and continuing to cut out The Trustees wish to record their thanks to all waste. St Michael's is an active member of the Hospice St Michael's volunteers and staff, past and present, in all Quality Partnership (HQP), an organisation set up by UK departments, who are essential to providing high-quality hospices to achieve best value through joint procurement ©@Fe for patients. The Staff and volunteers are the and contracting. guardians of St Michael's excellent reputation and good standing, attributes which are vital and must remain at the highest level.

1]

----- Start of picture text -----
St Michael's Hospice (incorporating the Freda Pearce Foundation)
Report of the Trustees
For the year ended 31 March 2024
Income Generation and Marketing plans were under eei 4 = ‘te Sis ij
continuous review to ensure every opportunity was taken Wind oe ee,
to safeguard income, reduce costs and deliver excellent ere ee Ve So see as ar
supporter and customer care throughout the year. During i Pg! wet)
the year the Head of Retail retired, and we welcomed ‘Ve 1% eat uf Pe
Lesley Wilkinson to the role, bringing a wealth of retail 4. Seg
expertise and knowledge. be aghe je i. -_.are,TERE | Te4 x
neal. | “gg
The cost-of-living crisis continued to have an impact Ui sane ea aggAe |aMU RESa a= = 2
upon supporters’ disposable incomes and their oni. — <<. ~
willingness to ask others for sponsorship, which
continues to affect mass-participation event income. The Christmas activities were once again a highlight of
Despite these increasing pressures Events and the year with all three ticketed events (Grotto, Santa run
Community Fundraising achieved gross income of and Artisan market) selling out. The grotto increased
£823,275 (2022/23: £790,020), the second increase in a attendance from 2,200 in 2022/23 to 4,994 in 2023/24
year and moving towards pre-pandemic levels. The fifth which helped the overall net income from all the
member of the Events and Community team joined in Christmas activities, including the tree collections,
May, and this has supported an increase in volunteer achieve £63,822 against the net budget of 44,501.
engagement, allowing more time for our fundraisers to
get out and about in the community. Ensuring we
continue to be a visual presence in the community is vital
to our funding, engaging with and inspiring the public to
take on their own fundraising activities. In 2023/24 ‘In aid 5 eer A
of fundraising’ generated £221,046, £21,046 over budget. ie at br! .. ae
We were proud to celebrate the much deserved Thank he | et Si H } a
You given to Mike Pullin by the One Show. Mike and the ig rs a "sie a
Hospice Angels have generated over £43,000 in 2023/24 5eat so
with their cumulative target (including gift aid) reaching — ne
almost £700,000 in 20 years. ~
i 2 Li S St Michael's is always appreciative of companies that
iz _ } choose to support through a variety of initiatives
ho; a. « ‘ah afl lht! fundrainclud i ngsing. volunteeringRadnor Hills anddona get t inged involved£7,500 asina partner
ao a =e ~ a again this year and HCC continued to sponsor RUN
-
me «oe / — Hereford at £3,500. Total income generated from
wera {° “. D ~ companies exceeded budget at over £59,000.
y a Trusts and Foundation grants secured this year
reg \ | [ if amounted to £228,000, slightly down against budget due
7
: to a competitive environment and some funding streams
Challenge = . being withdrawn after applications were submitted.
first of our fundove r seasaisingtreks continuesreturn tofrom grow.the WeSahara saw inthe Lottery, income was; supportedZ by the introduction; ; of
October. 3, single play lottery tickets in the shops, which assisted
raised £26,120 The teamand of we 11, are join pl e asedd by ourthat Therapy the next Lead, two durina:sBRING 8 YearsvaetoF ne Ganvaeeine 9 dué taising g agancagency
treks (The Camino Way 2024 and Kilimanjaro 2025) Rats.
already have secured enough places to operate. A 3-year Fundraising strategy has been agreed by the
It is always a pleasure to welcome supporters to events board and will be a continued focus for the team to
hosted ; b : ensure a diversified fundraising portfolio. The upcoming
A at the hospicehhaand the on-site Plant Fair 40th year anniversary; willill alsoal give: an opportunity: for
continued to grow with Lissa numbers of around 1,790 further fundraising and raising awareness of the work of
over the two days, with a net contribution of £15,785. In the St Michael's
March the Celebration weekend, consisting of three :
individual events, contributed a further £3,784 net.
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12

----- Start of picture text -----
St Michael's Hospice (incorporating the Freda Pearce Foundation)
Report of the Trustees
For the year ended 31 March 2024
Thank you yereforu am grossOur Hospice income Lottery (2022/23: and Raffles£387,855). contributedIt continues£328,413to be a
= - [— ee Se- challenging environment with some players cancelling
oy Desc 7 esi iliais., | Subscriptions due to tightening their finances. During the
i GR ios, ‘‘ : of Sap i eT =year we Saw 290 new players with 333 new plays;
1 oe ; (ola = “= unfortunately, we have been unable to recruit an internal
.
a, a! : canvasser. Most of these sign-ups will be the result of
+} 4 te email and social media marketing. The team have
57S bE . . focussed on launching single-play lottery in the shops
H| —\ ' e/a re, + over the last twelve months -— this will continue to ensure
sol.as' Wn -«&is¢ aae#8| LF monsme, oS / | growthphonea telephoneconsentis achieved campaign withfroma inlottery 2024/25all shops.ask. toRaffles We allwill supportersremainalso carryan without
The important income stream for St Michael's with an income
with commitmentthe opening toof growa third ourstore retailin Ross-on-Wye,portfolio continueda new ofraffles. £69,666 being generated during 2023/24 from the two
Hereford city-centre site in the ex-lceland premises and
new territories embraced with a shop opening in We generated £7,954,645 (2022/23: £8,054,941) from
Monmouth. Retail income for the year was an exceptional _ voluntary and other income sources (excluding income
£4,083,290 (2022/23: £3,555,827). directly related to our charitable activities). The cost of
raising funds, including the reallocation of support cost,
It was with great sadness that the lease at the Holmer was £3,824,398 (2022/23: £3,012,667).
Road Home and Living store came to an end, with the
search for a new site becoming an urgent priority to both For every £1 raised, 52p goes on delivering and improving
re-house the Holmer Road team and of course replace our care and support for people living with life-limiting
the vital income generated by one of our most profitable _ illness, and 48p goes on generating further income. We
sites. are disappointed that this ratio has reduced year on year
having been impacted by increased costs. These
In September we completed on the acquisition of the new Predominantly relate to increased expenditure on staff
Whitestone site, the Donation Centre opened to the public and associated costs within Retail, which has also had a
in February and the shop and café which opened in May knock-on impact on the overall profit margin of our retail
2024. Whitestone boasts extensive land with over 80 portfolio.
parking spaces so is well suited to be our main . ee ;
Distribution centre for all the shops going forward, as chau afhalal eet a ak delays
eens ta srvbiftone tor an Upayeling hub and Learng expenditure of £695,815 for the year. In 2024/25
St Michael's is budgeting for a surplus of £247,000 pre
A new site was found in Hay-on-Wye, which was welcome _4ePreciation (a deficit of £297,000 including
news for the committed group of volunteers based there dePreciation). With the continuing growth and strength of
who used to run the old shop. The shop opened in April the retail portfolio, surpluses are forecast into the future.
2024, after some refurbishment work.
As Our Marketing and Communications Team keeps
, a = ~ St Michael's in the forefront of people’s minds, from the
“ted — promotion of events to stories which highlight how
, ~ es= SS / eesTad for§=—peopleand livingsupported with a bylife-St limiting illnessMichael's. have been cared
. t. : ‘|, Soa mm +. it During the year the Marketing and Communications
; Psew) sve- psuoF” ni?‘cf Neat l| toy; Teamnumberintroduced of pages toa new-look keep supportersnewsletter fully with informeda greater on
~
"ia ; the work of St Michael's and how to get involved.
— —— B - , ’ Capturingsupport hospice powerfulnews imagesand continuesstories. The to team, be key now to
é consisting of four, manages the marketing for all
fundraising activities, as well as supporting campaigns to
grow volunteers and promote our care.
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13

----- Start of picture text -----
St Michael's Hospice (incorporating the Freda Pearce Foundation)
Report of the Trustees
For the year ended 31 March 2024
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A key achievement during the year was developing the new website, which went live ready for the promotion of our 40th year in 2024. The logo has been refreshed with accessibility needs in mind and a new brandmark developed for the 40th anniversary.

Our social media engagement metrics paint a picture of significant growth and performance across all accounts over the year. From an increased volume in posts, to higher engagement rates and enhanced reactions and likes, our efforts are resonating with our audience and driving meaningful interactions. As we continue to refine our content strategy and foster deeper connections with our community, we remain committed to sustaining this momentum and delivering value through our social media channels.

We review compliance through non-financial audit, mystery shoppers, surveys, monitoring feedback and at our Income Generation and 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.

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 fundraising team follow the guidelines of the Chartered Institute of Fundraising’s ‘Treating Donors Fairly’ guide. The number of complaints received during the year regarding fundraising was one (2022/23: nil).

Supporter communications, via either e-mail or post, followed a stewardship approach keeping people informed on how St Michael's was adapting and With the ability to collect vast amounts of a= continuing to deliver its services. Thanks to this work, the | data and information easily these days, community is far more aware of the breadth of services St Michael's needs to be able to analyse \ “‘“ St Michael's provides; how we are funded; and how more and use this data to increase our ceRrus” people can benefit from our services, not just atthe end effectiveness and understanding of our of life. work. Much of our work uses computers and so we have : i any ’ ; The quality and visibility of our branding, patient a strategyppropriately to develop and to best and effect. secure these systems literature, St Michael's website, hospice services and external communication continues to ensure people St Michael's achieved Cyber Essential Plus accreditation remain inspired by the work carried out by St Michael's. (Certificate Number: 46b9d4c6-508c-4966-b3a6The introduction of a new brochure to highlight the care ad158987df9d) in May 2023 and is seeking and support available, and how to get involved has been reaccreditation in 2024/25. a great addition.

$172(1) Statement

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St Michael's Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2024

In fulfilling this role, St Michael’s seeks to empower its volunteers and staff to work together to reach the best Governance and Management framework shown on page and Management framework shown on page Management framework shown on page framework shown on page shown on page on page page 18.

St Michael's culture is characterised by clear

Governance and Management framework shown on page and Management framework shown on page Management framework shown on page framework shown on page shown on page on page page = milenaat's Is Focused on people, with patients end thelr 18. families, volunteers and staff being at its heart. St Michael's depends on the trust and confidence of its St Michael's embraces diversity, flexibility, sustainability stakeholders to operate effectively and sustainably in the and continuous: improvement. long term and, as such, engagement with stakeholders Streamlined Energy and Carbon Reporting informs the basis of the Trustee Board's strategic planning and decision-making processes. Under the Energy and Carbon Reporting Regulations 2018 The Trustees Annual report highlightsor our commitmentto2 St° Michael's is required to report on its pinoeskey environmental engagingpatients and withtheir our mainfamilies, stakeholderour volunteers groups,and includingstaff, our our satsclrnatont thet dade ctric5. Omlestaris Uf Sf supporters, our health and social care partners, our 2023/24 suppliers, and our wider community. This engagement is F primarily through the provision of our care services, Consumption (kWh) fundraising, volunteering, education, partnership working ~ Gas : 962,925 and employment, - Electricity 596,242 The Consumption (miles) is trust and confidence that St Michael's depends upon - Volunteers and staff 60,764 built on its reputation for high standards of business - Hospice at Home 81,824 conduct, which is based on a range of policies and - Other 79,689 processes that promote corporate responsibility for, and Emissions (tCO2e) ethical behaviour towards, our stakeholders. These - Gas 103 include policies on fundraising, receipt of gifts, - Electricity 123 safeguarding of vulnerable people, bullying and - Transport fuel - volunteers and staff 16 harassment, and whistleblowing. These policies are - Transport fuel - Hospice at Home 19 reviewed periodically to ensure they remain relevant and - Transport fuel - Other 32 effective. Total emissions 293 By Intensity ratio — total tCO2e per head 1.02 recognising our workforce is our most valuable asset, count (per note 11) personal development of our people is a key pillar of our strategy. St Michael's invests in training, coaching, and skills acquisition, and aims to be a responsible employer . . : . with regards to the pay and benefits of staff. The health ‘he key environmental impacts for St Michael's key environmental impacts for St Michael's impacts for St Michael's for St Michael's St Michael's Michael's are and wellbeing and safety of our volunteers and staff is electricity and gas usage at and gas usage at gas usage at usage at at its Bartestree site and across and across across one of the primary considerations in the way we do its retail portfolio, and the and the the use of vehicles of vehicles vehicles for the delivery delivery business. of care and care and and support as well as for the the collection and

. . : . ‘he key environmental impacts for St Michael's key environmental impacts for St Michael's impacts for St Michael's for St Michael's St Michael's Michael's are electricity and gas usage at and gas usage at gas usage at usage at at its Bartestree site and across and across across its retail portfolio, and the and the the use of vehicles of vehicles vehicles for the delivery delivery of care and care and and support as well as for the the collection and delivery of retail donated goods and servicing of the retail units. Energy usage has been calculated using opening and closing mileage and meter and meter meter readings. The UK UK Government Greenhouse Gas Conversion Greenhouse Gas Conversion Gas Conversion Conversion factors for for © COMPany Reporting 2024 have been used COMPany Reporting 2024 have been used Reporting 2024 have been used 2024 have been used have been used been used used to provide the provide the the required conversion rates.

St Michael's has sustainability and environmental and closing mileage and meter and meter meter readings. The UK UK responsibility firmly embedded in its culture and Government Greenhouse Gas Conversion Greenhouse Gas Conversion Gas Conversion Conversion factors for for strategies. Sustainability runs through all aspects of our. © COMPany Reporting 2024 have been used COMPany Reporting 2024 have been used Reporting 2024 have been used 2024 have been used have been used been used used to provide the provide the the operations and activities, from energy-saving, recycling required conversion rates. and resource-sharing policies in our offices to supporting ’ our voluntary sector partners in our community through ' : d . . ' sharing our expertise and capabilities. The Board and St Michael s continually reviews opportunities to increase Executive team are committed to formalising our many energy efficiency and is currently taking the following areas of best practice into a structured approach to Steps to reduce its carbon emissions: embedding sustainability which will include capturing ¢ Changing light bulbs to LED and communicating the value of our efforts in this area. * Enhanced recycling initiatives * Increasing solar panel arrays e Increasing EV charging facilities

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St Michael's Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2024

The net book values of freehold land and buildings are There follows follows a brief overview overview of the the financial held in a designated reserve called the Property Fund, management that has fed that has fed has fed fed into these these reports. totalling £12,260,096 at 31 March 2024 (2022/23: £9,670,431). By designating these funds, the Trustees estnn thirn aim to give a clear presentation of the free reserves Because of the uncertainty of fundraising income available to St Michael's to meet its continuing streams, it is necessary to ensure that funds are always operational commitments. At the year-end, restricted readily available for use to ensure that levels of care are reserves totalled £84,522 (2022/23: £93,409). At the not adversely affected in the event of any short-term year-end, the designated capital investment fund totalled income reduction. The Trustees have decided to maintain £107,211 (2022/23: £107,211) and the designated a lower-risk investment strategy to protect reserves, and development fund totalled £803,990 (2022/23: therefore services, rather than seeking higher return £921,274). investments which increase the risk profile. Performance is measured against agreed inflation and market indices. _The level of reserves is monitored regularly by the Finance & Investments Committee and St Michael's In the current economic crisis, maintaining pace with reserves policy is reviewed annually by the Trustees inflation remains exceptionally hard. With net gains of when the budgets are approved. This will ensure that £197,453 (2022/23: £500,742 net losses), and total appropriate steps are in place to maintain reserves at the return of £457,066 (2022/23: minus £327,148), the appropriate levels. overall return on the portfolio was 9.48%.

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

16

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees _For202400 the year ended 31March cipal Als Our volunteers remain vital to our future, future, and Over the the course of 2023/24 year, the Trustees 2023/24 year, the Trustees year, the Trustees the Trustees Trustees did not continue to to seek and embrace new and and identify any new new major risks that are thought to thought to to have a to enhance and enhance and and grow this this invaluable resource. catastrophic effect on on service delivery, income income We will continue to to place St Michael's as a generation or compliance compliance with regulations. They continue continue hospice education service provision both to consider the the following material risks: beyond, ensuring that our education education offering

cipal Als Our volunteers remain vital to our future, future, and we will Over the the course of 2023/24 year, the Trustees 2023/24 year, the Trustees year, the Trustees the Trustees Trustees did not continue to to seek and embrace new and and innovative ways identify any new new major risks that are thought to thought to to have a to enhance and enhance and and grow this this invaluable resource. catastrophic effect on on service delivery, income income We will continue to to place St Michael's as a leader in generation or compliance compliance with regulations. They continue continue hospice education service provision both locally and to consider the the following material risks: beyond, ensuring that our education education offering reflects not only the needs of our workforce, but also the changing * Unpredictability of the legacy income stream, needs and priorities of the wider community. This will which currently represents 13.9% (2022/23: include continuing and increasing the provision of 17.2%) of all income. education for patients, carers, local health care providers » Arisk to donations because of the economic and 4d specialists, embracing new technologies and political climate and competition for funds. offering more opportunities and ways for people to * Uncertainty over the NHS contribution due to engage with St Michael's for their personal and austerity measures and economic climate. professional development. e Demand for hospice services outstripping ' ; capacity both in terms of volume and skill. We will explore ways of further moving our services ¢ Anageing workforce and volunteer cohort. closerto the people that need them, using resources e Challenges in recruitment, particularly in nursing such as the Mobile Hospice Support Vehicle ta provide 4 nationally and locally. hub-and-spoke model of care, community hospitals and &° Failure inthe provision of the service other venues such as the Talk Community Hub. We will " continue to train and use volunteers in innovative ways to , ‘ : oii . deliver support in their own communities. This is already management of expenditure, stewardship and Parenas id much wider sECPS ineluaing RReMmTonING ar diversification of income streams, maintaining paugnts. We will Sonning se foncsianks the vital Work appropriate reserve levels and raising the profile of volunteers play inour sarvica delivery and seek to make St Michael's invaluable services. full use of volunteers as the first choice for community service delivery wherever and whenever appropriate. The Trustees have reviewed financial forecasts into 2028 —_ As our organisation expands through increased and have paid special consideration to reviewing the fundraising, additional retail outlets, and home-delivered risks to St Michael's services and finances as aresult of _services, it is essential to maintain strong connections the current economic and political climate. The Trustees and clear communication within St Michael's. This are confident that St Michael's will continue as a going ensures that our team can work efficiently and serve as concern for the foreseeable future. knowledgeable ambassadors for St Michael's. We will ey enhance our communication channels to ensure every St Michael's will continue its current strategy while donor and SUBD recagnises the significant impact monitoring the risks to its implementation. As the needs__—‘they have on the lives of people in Herefordshire and the of our patients, community, workforce and allied surrounding areas. We will make greater use of our social professionals continue to change and evolve we will media presence and webpage to provide support, and continue to keep all our services under review as each educational and promotional materials for service-users develops and impacts the others so that patients and and the wider population. families receive the high-quality care they need, in the ; ; , : way they want it and at the place of their choosing. We Thanks to the generosity of our community, St Michael's will continue to work closely with the Integrated Care continues to provide the best possible palliative care and Boards (ICB) for Herefordshire and Worcestershire to support for local people and their families. The Trustee ensure that St Michael's interests and operations in Board would like to extend a heartfelt thank you to all the Herefordshire are heard at the ICB level, including supporters who make this possible. continuing to work closely with our colleagues in the other hospices.

During 2024/25 we will continue to focus on ensuring we have the right staff and volunteers with the right skills in the right place at the right time to ensure our patients and their families remain at the heart of everything we do.

17

St Michael's Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees _Forthe202400000 yearended31 March

Structure, Governance and Management Committee membership consists of at least two Trustees and a member of SMT. A Trustee chairs the Trustees : meetings and presents a report at The Trustee Board, their timearevoluntarily unremuneratedand receive volunteers.no benefits All Trusteesfrom give which meets every six to eight weeks. St Michael’s. Any expenses reclaimed from St Michael's % Kj LON ii NE i are set out in note 10 to the financial statements, of a PL Ww aa ie which there were none. When there are Trustee ie vacancies,diversity ofthethe continuing Trustees Board Trusteesconsider to determine the skills themix and ooARCweed a—a Me€Bete ji :=‘ By_.. person specifications needed in new Trustees. 4 oO ea: ee Recruitment is an open competitive process involving public advertising, networking, and head-hunting as \e }hi . '> Yeme a.aye ¢ Te 5g 1 aed: appropriate. ate IK be St Michael's provides potential Trustee candidates with ~~ 3 a= . © information about the organisation and about the role of — — ; F pictured front cover, and above at the opening o appointment. The Board of Trustees make appointments. St Michael's in 1984) died on 23" January 2024. Every Trustee must sign a Trustee Commitment and It was Richard who had the vision some 45 years ago to Disclosure Form to act as a Trustee of St Michael's create a hospice to fill the vast gap in end-of-life care in before he or she is eligible to become a Trustee, Herefordshire. He was tireless in setting the foundations including a declaration of interest form, which is renewed for St Michael's, whilst continuing to work as a local GP. each year. On appointment or election as a Trustee, a The photo of Richard releasing the dove at the opening Trustee becomes a member of St Michael's. Trustees of our hospice building at Bartestree continues to be our hold membership of St Michael's only during their symbol. He remained as a Trustee until he retired in Trustee Term of Office. Retirement, resignation or December 2015, continuing to provide us with his great removal as a Trustee ends their membership of St knowledge and experience. Richard is remembered with Michael's. great fondness and is sadly missed. The work that St Michael's does today Is a fitting testament to Richard and It is St Michael's policy and practice to provide Trustee his fellow founders who had the fortitude and bravery to Board Members with appropriate training to undertake create something very special. their role and to ensure that new Trustee Board Members receive an induction to St Michael's and to the role of a Mike Keel, Chief Executive, announced his retirement Charity Trustee and Company Director. New Trustees during 2023/24 and left the Charity on 31% March 2024 attend a corporate induction day, and we look to provide — after eight and half years’ service. The Trustee Board them with a mentor Trustee to provide specific support extend their thanks and appreciation to Mike for the over the first 12 months of their Trustee Term. Trustees Outstanding contribution he has made to St Michael's are elected initially for a three-year term and are and wish him well in his retirement. appraised annually. - The Trustee Board delegate day-to-day responsibility to it — | the Chief Executive, who in turn delegates some hy management functions to the Strategic Management A! 5 | ‘ , vi Team (SMT). The Schedule of Delegation is set out in the sy \ “{ Yi Ws ew Governance Manual. The Trustee Board has four subSS \ as me committees that meet quarterly and are responsible for FF NI reviewing St Michael's activities in their respective areas ¥ “.°) ; of expertise in more detail than full Board meetings can r | : x). AN achieve. These are: \ ON e Clinical Governance & Care Committee; The Trustee Board welcomed Matt Fellows, as Chief ¢ People & Facilities Committee; Executive (Designate) on 1%t March 2024 to undergo his e Finance & Investment Committee; induction and handover before taking over full duties on e Income Generation, Marketing & 1% April 2024. Communications Committee.

18

St Michael's Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2024

We have a Joint Staff Consultative Group (and equivalent The aim of St Michael's pay policy is to offer fair pay to Volunteer Group), where organisational proposals that attract and keep appropriately qualified staff to lead, might impact staff and volunteers are discussed and manage, support, and deliver St Michael's aims. Trustees feedback is actively sought to ensure any changes are are ultimately responsible for setting the Chief managed effectively and we get it right first time, every Executive's remuneration level and agreeing the annual time. Goat OF iKing aia We hold regular staff meetings and informal gatherings The Chief Executive sets grading levels for the Strategic to encourage staff and volunteer engagement. The Management Team with Trustee oversight (except Trustees carry out regular planned visits to meet and talk medical staff who are on the NHS scheme). The Strategic with volunteers and staff, as do the management team. Management Team sets grading levels for all other staff. ‘ P 7 - Our internal intranet keeps staff informed of what is When deciding the Chief Executive and Senior Staff happening at St Michael's and provides opportunity for salary levels, consideration is given to: feedback. We encourage staff to share their successes via this platform too,

St Michael's regularly benchmarks its salary against A lot of work has been done during 2023/24 to re-engage other similar organisations and, in the case of clinical with our volunteers, many of whom had to isolate or staff, with the NHS and local authority in Herefordshire. avoid coming into St Michael's during the pandemic. We are proud to have retained most of our volunteers and St grown this workforce further,

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 forthose 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,

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 £2.2 million per annum.

Within deferred income is £128,500 held as a cash St investment which provides a lifelong annuity to an Michael's is committed to providing staff and individual. St Michael's and a GP surgery are joint volunteers with information on matters of concern to beneficiaries of the residual capital. them. Employee engagement is important for St Michael's. We do this through various methods as well as the annual Best Companies Staff Survey mentioned above.

19

St Michael's Hospice (incorporating the Freda Pearce Foundation) Report of the Trustees For the year ended 31 March 2024

They are also responsible for safeguarding the assets of The Trustees (who are also directors of the company for the charitable company and group and hence for taking the purposes of company law) are responsible for reasonable steps for the prevention and detection of preparing the Trustees annual report including the fraud and other irregularities. strategic report and the financial statements in accordance with applicable law and United Kingdom In so far as the Trustees are aware: Accounting Standards (United Kingdom Generally Accepted Accounting Practice). « There is no relevant audit information of which which

Accepted Accounting Practice). « There is no relevant audit information of which which : Company law requires the Trustees to prepare financial the charitable company’s auditor is unaware statements for each financial year which give a true and fairand view of the state of affairs of the charitable company , oe thot ees nave pone! all citer that they"sae of group and of the incoming resources and application - BvEAe an hae a ard Mis tabigh hsuy resources, including the income and expenditure, of be ae Bae) inate, sy Aeisaceliarh le the charitable company and group for that period. |n auditor is aware of that Information preparing these financial statements, the Trustees are The Trustees are responsible for the maintenance and required to: integrity of the corporate and financial information e Select suitable accounting policies and then included onthe enertabie company's website: apply them consistently Legislation in the United Kingdom governing the preparation and dissemination of financial statements ¢ Observe the methods and principles in the may differ from legislation in other[jurisdictions.] Charities SORP

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.

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Mr D Teague — Chair
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20

Independent Auditor's Report To the Members of St Michael's Hospice (incorporating the Freda Pearce Foundation) For the year ended 31 March 2024

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 2024 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:

¢ have been prepared in accordance with the requirements of the Companies Act 2006.

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.

In auditing the financial statements, we have concluded that the trustee's 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 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.

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.

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.

21

Independent Auditor's Report To the Members of St Michael's Hospice (incorporating the Freda Pearce Foundation) For the year ended 31 March 2024

In our opinion based on the work undertaken in the course of our audit

In light of the knowledge and understanding of the 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:

As explained more fully in the trustees’ responsibilities statement set out on page 18, 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.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company 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).

22

Independent Auditor's Report To the Members of St Michael's Hospice (incorporating the Freda Pearce Foundation) For the year ended 31 March 2024

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 recognition of legacy income, 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 Investments Committee about their own identification and assessment of the risks of irregularities, sample testing on legacy and grant 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. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.

bh bundetl

Helen Blundell Lig FeA Fei KChA 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: 2 Septewrher 202K

23

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 2024

Unrestricted Restricted 2024 2023
Total Total
Note £ £ £ £
Income from:
Donations and legacies 3 2,712,968 17,273 2,730,241 3,571,843
Charitable activities 4 2,237,973 - 2,237,973 2,169,979
Othertrading activities 5 4,853,469 - 4,853,469 4,250,594
Investments 6 357,245 - 357,245 214,298
Other 7 13,690 - 13,690 18,206
Total income 10,175,345 17,273 10,192,618 10,224,920
Expenditure on:
Raising funds 9 3,818,510 5,888 3,824,398 3,012,667
Charitable activities 9 7,246,287 15,201 7,261,488 6,469,667
Total expenditure 9 11,064,797 21,089 11,085,886 9,482,334
Net (loss) /income before net (889,452) (3,816) (893,268) 742,586
gains / (losses) on
investments
Net gains on property 15 40,000 - 40,000 -
investments
Net gains / (losses) on listed 16 157,453 - 157,453 (500,742)
investments
Net (loss) /incomeforthe (691,999) (3,816) (695,815) 241,844
year
Transfers between funds 25 5,071 (5,071) - -
Netmovement infunds (686,928) (8,887) (695,815) 241,844
Reconciliation offunds:
Total funds brought forward 25 24,382,323 93,409 24,475,732 24,233,888
Totalfundscarriedforward 25 23,695,395 84,522 23,779,917 24,475,732

The notes on pages 27 to 47 form part of these financial statements.

24

St Michael's Hospice (incorporating the Freda Pearce Foundation) Consolidated and Charity Balance Sheets As at 31 March 2024

Group Charity
2024 2023 2024 2023
Note £ £ £ £
Fixed assets
Tangible fixed assets 14 = 13,802,807 10,945,475 13,802,807 10,945,475
Investment properties 15 740,000 700,000 740,000 700,000
Investments 16 8,442,415 10,086,616 8,442,415 10,086,616
22,985,222 21,732,091 22,985,222 21,732,091
Current assets
Stock 19 15,275 15,604 1,254 -
Debtors 20 726,760 808,844 851,029 969,272
Cash at bank and in hand 1,018,793 2,781,482 887,780 2,615,867
1,760,828 3,605,930 1,740,063 3,585,139
Liabilities
iamountsduewithinone 21 (966,133) (862,289) (945,932) (842,062)
Net current assets 794,695 2,743,641 794,131 2,743,077
Total netassets 23,779,917 24,475,732 23,779,353 24,475,168
Funds ofthe Group and Charity: 25
Restricted income funds 84,522 93,409 84,522 93,409
Unrestricted funds
Designated funds 13,171,296 10,698,916 13,171,296 10,698,916
General funds 10,524,099 13,683,407 10,523,535 13,682,843
Total unrestricted funds 23,695,395 24,382,323 23,694,831 24,381,759
TotalGroupandCharityfunds 23,779,917 24,475,732 23,779,353 24,475,168

The Charity’s net expenditure for the year was £695,815 (2022/23: £241,844 net income).

The notes on pages 27 to 47 form part of these financial statements.

Approved and authorised for issue by the Board of Trustees on 17 July 2024 and signed on their behalf by:

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Mr D Teague (Chair)
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Company Registration Number: 01634942 (England and Wales)

25

St Michael's Hospice (incorporating the Freda Pearce Foundation) Consolidated Statement of Cash Flows For the year ended 31 March 2024

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |2024|2023| |Note|£|a| |Cash|flows from|operating|activities| |Net cash|used|in|operating|activities|26|(633,358)|2,188,690| |Cash|flows from|investing|activities:| |Dividends,|interest,|and|rents|from|investments|357,245|214,298| |Proceeds|from|the|sale|of|fixed|assets|825|612| |Purchase|of fixed|assets|(3,288,880)|(320,944)| |Proceeds|from|the|sale|of|investments|3,464,006|929,988| |Purchase of investments|(1,659,669)|(2,598,555)| |Movement|in|investments|—|cash|holdings|(2,683)|(4,277)| |Net|cash|used|in|investing|activities|(1,129,156)|(1,778,878)| |Change|in cash|and|cash|equivalents|in the year|(1,762,514)|409,812| |Cash|and|cash|equivalents|at the|beginning|of the|year|2,774,197|2,364,385| |Cash|and|cash|equivalents|at the|end|of the|year|27|1,011,683|2,774,197|

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The notes on pages 27 to 47 form part of these financial statements.

26

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

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 the current economic and political climate 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 priorto the year-end where valid gift aid declarations are held,

27

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

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 whena 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.

28

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

2. 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.

Inpatient Care 50.0%
In reach (Day Care Services) 2.5%
Supportive & Rehabilitative Care 1.0%
Education & Training 1.0%
Hospice atHome 25,0%
Charitable Activities 79.5%
RaisingFunds 20.5%

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.

1) 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:

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.

29

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

i. 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.

0) 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 ona 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.

30

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

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 re-assessed 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 |) 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.

iv) Dilapidations

The charitable company has estimated the anticipated costs of dilapidations across its retail shops based on the age of the leases and historic costs incurred.

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.

3!

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

2. Detailed comparatives for the Statement of Financial Activities

Unrestricted Restricted 2023
Total
Note £ £ £
Income from:
Donations and legacies 3 3,552,316 19,527 3,571,843
Charitable activities 4 2,159,979 10,000 2,169,979
Othertrading activities 5 4,250,594 - 4,250,594
Investments 6 214,298 - 214,298
Other fi 13,812 4,394 18,206
Total income 10,190,999 33,921 10,224,920
Expenditureon:
Raising funds 9 2,999,742 12,925 3,012,667
Charitable activities 9 6,431,132 38,535 6,469,667
Total expenditure 9 9,430,874 51,460 9,482,334
Netincome before netgains on 760,125 (17,539) 742,586
investments
Net gains on property 15 - - -
investments
Net losses on listedinvestments 16 (500,742) - (500,742)
Netincome / (expenditure) for 259,383 (17,539) 241,844
the year
Transfers between funds 25 26,482 (26,482) -
Netmovement infunds 285,865 (44,021) 241,844
Reconciliation offunds:
Total funds brought forward 25 24,096,458 137,430 24,233,888
Totalfundscarriedforward 25 24,382,323 93,409 24,475,732

32

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

  1. Income from donations and legacies
2024 2023
Unrestricted Restricted Total Total
£ £ £ £
Donations 571,971 2,944 574,915 1,108,961
Trusts and foundation grants 214,962 13,224 228,186 186,321
Community fundraising activities 505,314 1,105 506,419 520,615
Legacies 1,420,721 - 1,420,721 1,755,946
Total 2,712,968 17,273 2,730,241 3,571,843

As at 31 March 2024 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 £1,243,000. None of these legacies have been accrued in the financial statements.

4. Income from charitable activities

Income from charitable activities
2024 2023
Unrestricted Restricted Total Total
£ £ £
Nursing & medical care 1,001,080 - 1,001,080 947,568
Trusts and foundation grants 2,700 - 2,700 10,000
Hospice at Home 1,166,253 - 1,166,253 1,145,632
Othercare services 2,014 - 2,014 -
Education and training 65,926 - 65,926 66,779
Total 2,237,973 - 2,237,973 2,169,979

£2,092,201 (2022/23: £2,055,807) was received from NHS Herefordshire and Worcestershire. £30,392 (2022/23: £30,392) was received from Powys Local Health Board. £44,740 (2022/23: £7,000) was received from NHS Wales. f£nil was received from the Worcestershire Clinical Commissioning Group (2022/23: £865) for the provision of Advanced Communication Skills and Syringe Driver training. £24,900 (2022/23: £24,900) was received from Health Education England towards Registered Nurse Degree Apprenticeships. £26,935 (2022/23: £14,187) was received from the Hereford and Worcester acute hospitals for the provision of training and room hire for study days. £3,398 (2022/23: £nil) was received from Taurus Healthcare for use of the Mobile Hospice Support Vehicle.

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

5. Income from other trading activities

2024 2023
Unrestricted Restricted Total Total
£ £: £ £
Fundraising events 316,856 - 316,856 269,405
Lottery 406,802 - 406,802 394,886
Retail shops 4,083,290 - 4,083,290 3,555,827
Other 46,521 - 46,521 30,476
Total 4,853,469 - 4,853,469 4,250,594

33

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

6. Income from investments

2024 2023
Unrestricted Restricted Total Total
£ £ £ £
Bank interest received 25,882 - 25,882 11,143
Investment interest & dividends 299,613 - 299,613 173,594
Rental income 31,750 - 31,750 29,561
Total 357,245 - 357,245 214,298
7. Other Income
2024 2023
Unrestricted Restricted Total Total
£ £ £ £
Crematorium Fees 7,954 - 7,954 8,200
Disposal offixed assets - - - 612
Other 5,736 - 5,736 9,394
Total 13,690 - 13,690 18,206
8. Netincome forthe year
This is stated after charging: 2023 2022
£ £
Depreciation 466,490 446,676
Net profit on disposal offixed asset - 300
Net loss on disposal offixed asset 972 :
Operating lease rentals: - property 349,678 273,281
- other 47,591 27,549
Auditor's remuneration: - audit 17,975 15,400
- other services 2,500 2,750
Interestreceivable 25,882 11,143

7. Other Income

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St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

10. Staff costs and numbers

Staff costs were as follows:
2024 2023
£ £
Salaries and wages 6,480,741 5,529,118
Redundancy and termination costs 68,966 3,947
Social security costs 540,542 487,788
Pension contributions — defined benefitscheme 214,548 216,034
Pension contributions — defined contribution schemes 346,281 286,050
7,651,078 6,522,937
Less: Recharged to capital (37,161) -
Note9 7,613,917 6,522,937

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

2024 2023
No. No.
£60,000 - £69,999 2 1
£70,000 - £79,999 2 1
£80,000 - £89,999 - 1
£90,000 - £99,999 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. The total cost (including employer national insurance costs and pension contributions) of the key management personnel who served during the year was £290,320 (2022/23: £234,890). The Trustees were not paid nor received any other benefits or employment with St Michael's in the year (2022/23: £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:

2024 2024 2023 2023
Head WTE Head WTE
Count Count
Inpatient Care 96 61 88 57
In reach / Day Care Services 17 8 14 8
Supportive & Rehabilitative Care 16 11 15 10
Hospice at Home 36 29 39 28
Externally provided education and
training		 1 1 1 1
Support 26 20 23 19
Raising funds 94 60 78 50
286 190 258 173

36

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

12. Related party transactions

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

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 £14,802 (2022/23: £14,999)

During the year, a management charge was made by the charitable company to SMH Trading Limited of £139,279 excluding VAT (2022/23: £165,598). At the end of the year gift aid of £6,283 (2022/23: £9,917) was payable by SMH Trading Limited to the charitable company. The total yearend balance owed to the charitable company was £124,479 (2022/23: £160,638).

13. Taxation

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

37

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----- End of picture text -----*

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

15. Investments Properties — Group and Charity

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2024|2023| |£|£| |Fair value|at the|start|of the year|700,000|700,000| |Revaluation|during|the|year|40,000|-| |Fair Value|at the end|of the year|740,000|700,000|

----- End of picture text -----

The properties were last valued on an open market valuation basis on 13" May 2024 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

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2024|2023| |£|£| |Fair value|at the|start|of the year|10,066,216|8,898,391| |Transfers|a|-| |Additions|at|cost|1,659,669|2,598,555| |Disposal|proceeds|(3,464,006)|(929,988)| |Net gain|/|(loss)|on change|in|fair value|157,453|(500,742)| |8,419,332|10,066,216| |Investments|-|cash|holdings|23,083|20,400| |Fair|value|at the|end|of the|year|8,442,415|10,086,616| |Investments|comprise:|2024|2023| |£|£| |UK|Fixed|Interest|3,955,650|4,513,465| |International|Fixed|Income|-|101,506| |Equities|1,100,847|2,051,663| |Alternative|Investments|751,840|1,378,578| |Cash|Funds|2,634,067|2,041,393| |8,442,404|10,086,605| |Investment|in|subsidiary|undertakings|incorporated|in|the|1|1| |UK| |Investment|in|Hospice|Quality|Partnership|10|10| |8,442,415|10,086,616|

----- End of picture text -----

38

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

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 ona 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.

2024 2023
£ £
Turnover 244,748 293,974
Costofsales (94,985) (115,912)
Gross profit 149,763 178,062
Distribution costs (55,412) (65,883)
Administrative expenses (83,867) (99,715)
Other operating expenditure (4,201) (2,547)
Operating profit 6,283 9,917
Taxation - :
Profit aftertaxation 6,283 9,917
Retained earnings atthe start oftheyear 563 563
Profit fortheyear 6,283 9,917
Gift aid donation (6,283) (9,917)
Retained earnings atthe end ofthe year 563 563
The aggregate ofthe assets, liabilities and funds was:
Assets 145,244 181,429
Liabilities (144,680) (180,865)
564 564
Funds:
Share capital 1 1
Retained profits 563 563
564 564

Distribution costs and administrative expenses totalling £139,279 (2022/23: £165,598) represent a management charge from the parent entity. Amounts owed to the parent undertaking are shown in note 20, Transactions between the parent entity and trading subsidiary are included in note 12.

40

St Michael’s Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

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 dormant.

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

A summarysummary of thethe results of thethe subsidiary is shown below:
2024 2023
£ £
Turnover a .
Cost of sales - -
Gross profit - -
Otheroperating expenditure - =
Operating profit / (loss) - :
Taxation 7 ————
Profit / (Loss) aftertaxation - -
Retained (losses) / earnings atthe start ofthe year - -
Profit / (Loss) forthe year - -
Gift aid donation a :
Retained profit / (losses) atthe end ofthe year - -
The aggregate ofthe assets, liabilities and funds was:
Assets 1 1
Liabilities -
at DS		 -
re
Funds:
Sharecapital 1 1
7
Retained losses -
1 1

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.

4|

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

18. Parent charity

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

2024 2023
£ £
Gross income and gains / (losses) on investments 10,290,885 9,605,718
Gross expenditure 10,986,700 9,363,874
Net(expenditure) /income (695,815) 241,844
Stock
Group Charity
2024 2023 2024 2023
£ £ £ £
Goods for resale 15,275 15,604 1,254 -
15,275 15,604 1,254 -
Debtors
Group Charity
2024 2023 2024 2023
£ £ £ £
Trade debtors 92,260 55,910 92,260 55,910
Amountsowed bygroup . . 124,479 160,638
undertaking
Other debtors 127,190 93,241 126,980 93,031
Prepayments 218,683 119,336 218,683 119,336
Accrued income 288,627 540,357 288,627 540,357
726,760 808,844 851,029 969,272

19. Stock

  1. Debtors

Trade debtors are stated after impairment provision totalling £nil (2022/23: £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

Group Charity
2024 2023 2024 2023
£ £ £ £
Bank overdraft 7,110 7,285 7,110 7,285
Trade creditors 272,257 182,955 266,752 179,277
Taxation and social security 134,702 113,591 134,702 113,591
Other creditors 114,430 105,850 103,490 92,924
Accruals 207,551 227,092 203,795 223,469
Deferred income 230,083 225,516 230,083 225,516
966,133 862,289 945,932 842,062

42

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

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 (2022/23: £128,500), all the deferred income of the previous year was released in the current year.

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Group|Charity| |2024|2023|2024|2023| |£|£|£|£| |Balance|at the|beginning|of the year|225,516|211,746|225,516|211,746| |Amount|released|to|income|in the year|(97,016)|(83,246)|(97,016)|(83,246)| |Amount|deferred|in|the|year|101,583|97,016|101,583|97,016| |Balance|at the|end|of the|year|230,083|225,516|230,083|225,516|

----- End of picture text -----

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 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 the 1995/2008 and 2015 schemes are accounted for, and the scheme liability valued, as a single combined scheme. 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 2024, is based on valuation data as 31 March 2023, updated to 31 March 2024 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.

43

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024 eee ee ss

23. NHS pension scheme (continued)

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.

The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2020. The results of this valuation set the employer contribution rate payable from April 2024. The Department of Health and Social Care has recently laid Scheme Regulations confirming the employer contribution rate will increase to 23.7% of pensionable pay from 1 April 2024 (previously 20.6%). The core cost cap cost of the scheme was calculated to be outside of the 3% cost cap corridor as at 31 March 2020. However, when the wider economic situation was taken into account through the economic cost cap cost of the scheme, the cost cap corridor was not similarly breached. As a result, there was no impact on the member benefit structure or contribution rates.

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 £214,548 (2022/23: £216,034). Employee and employer contributions outstanding as at 31 March 2024 was £29,784 (2022/23: £29,841).

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

General
unrestricted Designated Restricted Totalfunds
£ £ £ £
Tangible fixed assets 1,542,712 12,260,095 - 13,802,807
Investments 9,182,415 - - 9,182,415
Net current (liabilities)/assets (201,028) 911,201 84,522 794,695
Net assets atthe end ofthe
year 10,524,099 13,171,296 84,522 23,779,917
Analysis ofgroup net assets between funds (prioryear 2023)
General
unrestricted		 Designated Restricted Total
funds
re £ £ £
Tangible fixed assets 1,275,044 9,670,431 - 10,945,475
Investments 10,786,616 - - 10,786,616
Net current assets 1,621,747 1,028,485 93,409 2,743,641
Net assets atthe end ofthe
year 13,683,407 10,698,916 93,409 24,475,732

24a Analysis of group net assets between funds (prior year 2023)

44

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

25. Movements in group funds (current year)

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |At|1|April|Income|Expenditure|Transfers|Gains/|At 31|March| |2023|(Losses)|2024| |£|£.|£|£|£| |Restricted|funds:| |Patient|care|78,981|15,584|(19,109)|(5,071)|-|70,385| |Punda|fon|otier|appetite|14,428|1,689|(1,980)|:|:|14,137| |items|eS.| |Total|restricted funds|93,409|17,273|(21,089)|(5,071)|-|84,522| |Unrestricted|funds:| |Designated|funds| |Property fund|9,670,431|-|(275,500)|2,865,164|-|12,260,095| |Capital|investment|fund|107,211|-|-|-|-|107,211| |Development fund|921,274|-|(91,584)|(25,700)|-|803,990| |leeches|10,698,916|-|(367,084)|2,839,464|-|13,171,296| |General funds|13,683,407|10,175,345|(10,697,713)|(2,834,393)|197,453|10,524,099| |Hist|oriaacia|24,382,323|10,175,345|(11,064,797)|5071|197,453|23,695,395| |Total funds|24,475,732|10,192,618|(11,085,886)|-|197,453|23,779,917|

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

Purpose of restricted funds - Restricted funds totalling £84,522 (2022/23: £93,409) comprise:

Purpose of designated funds - Designated funds totalling £13,171,296 (2022/23: £10,698,916) comprise:

i The property fund - This equates to the net book value of the freehold land and buildings. £275,500 (2022/23: £256,779) was expended being depreciation charged in the year. The transfer of £2,865,164 represents the freehold purchase of 85 Whitecross Road and Unit 14, Whitestone Business Park.

ii The capital investment fund — £107,211 (2022/23: £180,770) was held at the start of the year and remains at the end of the year.

iii The development fund - £921,274 (2022/23: £1,118,898) was held at the start of the year to support workforce and care service development initiatives. £91,584 was expended for these purposes during the year with a further £25,700 expended on capital items and released to general funds.

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St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024

25a. Movements in group funds (prior year 2023)

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |At|1|April|Income|—|Expenditure|Transfers|Gains|/|At 31|March| |2022|(Losses)|2023| |£|£|£|£|£| |Restricted|funds:| |Patient|care|102,589|27,490|(25,616)|(25,482)|-|78,981| |Funds|for other specific|34,841|6,431|(25,844)|(1,000)|-|14,428| |items| |Unrestricted|funds:| |Designated|funds| |Property fund|9,894,495|-|(256,779)|32,715|=|9,670,431| |Capital|investment fund|180,770|-|(500)|(73,059)|-|107,211| |Development fund|1,118,898|-|(183,824)|(13,800)|=|921,274| |Total designated|11,194,163|:|(441,103)|(54,144)|,|10,698,916| |funds| |General funds|12,902,295|10,190,999|(8,989,771)|80,626|(500,742)|13,683,407| |Total unrestricted|funds|24,096,458|10,190,999|(9,430,874)|26,482|(500,742)|24,382,323| |Total funds|24,233,888|10,224,920|(9,482,334)|=|( 900,742)|24,475,732|

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

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |2024|2023| |£|£| |Net|(expenditure)|/|income|for the|reporting|period|(as|per|(695,815)|241,844| |Consolidated|Statement|of|Financial|Activities)| |Depreciation|466,490|446,676| |(Gains)|/|Losses|on|investments|(197,453)|500,742| |Dividends,|interest and|rent from|investments|(357,245)|(214,298)| |Profit on|disposal|of fixed|assets|(825)|(612)| |Loss|on|disposal|of|fixed|assets|972|2,355| |Decrease|in|stocks|329|1,196| |Decrease|/|(Increase)|in|debtors|82,084|1,226,281| |Increase|/|(Decrease)|in|creditors|68,105|(15,494)| |Net cash|provided|by operating|activities|(633,358)|2,188,690| |27.|Analysis|of cash and|cash|equivalents| |At|1|April|At|31|March| |2023|Cash|flows|2024| |£|£|£| |Cash|at|bank and|in|hand|2,781,482|(1,762,689)|1,018,793| |Bank overdrafts|(7,285)|175|(7,110)| |Decrease|in the|year|2,774,197|(1,762,514)|1,011,683|

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46

St Michael's Hospice (incorporating the Freda Pearce Foundation) Notes to the financial statements For the year ended 31 March 2024 SSSeeeEE ES

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:

Property Equipment
2024 2023 2024 2023
£ £ £ £
Lessthan one year 277,579 302,740 26,155 40,365
Laterthan oneto fiveyears 728,360 761,991 26,929 54,960
Overfive years 545,771 635,595 - -
1,551,710 1,700,326 53,084 95,325

29. Capital commitments

At the balance sheet date, there were no capital commitments (2022/23: fnil).

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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