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Company Registration No. 01602467 Charity No. 512186

St Catherine’s Hospice (Lancashire) Limited

A Company Limited by Guarantee

Directors’ Report and Accounts

For The Year Ended

31 March 2022

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

	Page
Reference and Administrative information	1
Report of the trustees	2
Independent Auditor’s Report to the members	12
Group statement of financial activities	15
Company statement of financial activities	16
Group balance sheet	17
Company balance sheet	18
Group cashflow statement	19
Accounting policies	21
Notes to the accounts	25

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REFERENCE AND ADMINISTRATIVE INFORMATION

Founder

The late Mrs C Sharples

Patrons

Sir B Beaumont Mr M Lawrenson Sir D Nichol Ms T Merry Dr L Livesey Dr S Crean

Honorary Vice Presidents

His Worship the Mayor of Chorley His Worship the Mayor of Preston His Worship the Mayor of South Ribble

President

Mr J C Hughes MBE

Members of the Board: Chairman

Mr J G Chesworth

Members

Mr J G Chesworth Mr J A Bonser Mr M J Lough Mr T R Frier Mr P A Franks Mrs L Norris Ms M L Cox Dr D T Shakespeare Ms A K Van Duyvenvoorde Mr A M Ryder Ms C M Burgess (appointed 1 February 2022) Mr A E Harrison (resigned 11 October 2021) Dr F M Duncan (resigned 9 December 2021) Mr J Holden (resigned 1 July 2022)

Key Management Personnel:

Chief Executive and Company Secretary

Mrs L A Kelly

Medical Director

Dr A J Fletcher

Director of Nursing, Governance and AHPs Mr J Brash Director of Community and Income Ms L Charlesworth

Director of People and Organisational Ms K Overend Development

Registered Charity No. 512186

Registered Office St Catherine’s Hospice Lostock Lane Lostock Hall Preston, PR5 5XU

Auditor

MHA Moore and Smalley Chartered Accountants & Statutory Auditor Richard House, 9 Winckley Square Preston, PR1 3HP

Page 1

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES

The Board of Trustees, who are also directors of the charity for the purposes of the Companies Act, submit their annual report and the audited financial statements for the year ending 31 March 2022, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Structure, Governance and Management

The charity is a charitable company limited by guarantee and was set up on 7 December 1981. It is constituted and governed by a Memorandum & Articles of Association, which are updated regularly.

The Articles of Association currently allow for an Association and members of the Association to elect from their number trustees who constitute the Hospice Board. The chairman and vice-chairman are elected by the trustees from amongst their own number.

Governance arrangements are described in a Governance Manual. This is founded on the Memorandum and Articles of Association. Service Committees are - Patient Care, Community & Income, Knowledge Exchange and Finance, Audit & Business. These are complemented by Corporate Committees and Sub-Committees such as, for example, the Health & Safety Sub-Committee, Remuneration Sub-Committee and Information Governance Sub-Committee. Membership of each committee is determined by the Board. Each committee operates to standing orders and terms of reference.

The Governance Manual includes sections on the appointment of trustees, it describes the process for which recent appointments have been made which is through a transparent and open recruitment process with the opportunities widely promoted. Appointments may be made by the Board but they have to be supported by the Association at the AGM. Induction of trustees includes participation in the hospice's induction programme for staff and volunteers as well as specific components for their role such as an introduction to governance alongside meetings with the senior management team. There is a development programme for trustees which includes regular performance reviews with the Chair or Vice-Chairs, training / updating requirements, meetings with the CEO and attendance at staff and volunteer seminars. An independent review of governance was carried out in May 2021 which was benchmarked against the Charity Governance Code and other Charities. The main areas identified for development included Equality, Diversity and Inclusion and a review of the committee structure. This was followed up with a governance masterclass in June and an update to the committee structure which was approved by the Board in March 2022 and will be implemented in 2022-2023. An Equality, Diversity and Inclusion stream of work has also been set up which will be supported by a steering group of trustees, management and external experts.

The Quality and Governance Sub-Committee oversees governance of clinical matters such as safeguarding, policies, audit, infection prevention, training etc and reports into the Patient Care Committee. There is a comprehensive range of policies, standards and protocols covering all aspects of clinical work which are reviewed and updated on a regular basis. Financial matters, including budgets, review of accounts and financial controls, are dealt with through Board and the Finance, Business & Audit Committee.

Remuneration for the charity is determined by the board, advised by a trustee-led Remuneration Sub-Committee that benchmarks from the industry standard and cost of living indices. All salaries are job evaluated against a set of agreed criteria and subsequently revised alongside benchmarking with competitors.

The full Board of Trustees meets at least four times a year, with additional meetings being convened as required. Planning Days involving trustees and senior staff are a regular feature of Hospice working arrangements. Seminars involving all colleagues take place twice a year usually in spring and autumn. However, due to the pandemic these have been replaced by regular communications from the CEO by email, video message and virtual meetings. Annual Business Plans describe strategic and operational direction and are supported by other strategic and management documents such as the new 5 Year Plan which commenced in April 2021.

Page 2

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

The charity has strong relationships with partners including the NHS, commissioners, local councils, academic institutions and other hospices. St Catherine's has a memorandum of understanding with the University of Central Lancashire and one with Runshaw College. Members of the senior team play an active role in various local groups which include developing a strategy and collaborative working for end of life care in Central Lancashire.

Objectives and Activities for Public Benefit

In accordance with the objects set out in the Memorandum and Articles of Association, St Catherine’s supports patients with life shortening illnesses, and those important to them, to have quality of life to the end of life. Our vision is that everyone in Central Lancashire has quality of life to the end of life. Building on this, the new 5 Year Plan (2021-2026) aims to reduce unnecessary suffering and frustration through improved coordination, integration, responsiveness and accessibility. The new 5 Year Plan was developed with the support of the Patients and Families Sub-Committee who were fully concordant with its aims and objectives. The area served includes Adlington, Chorley, Longridge, Preston and South Ribble. St Catherine’s Hospice works closely with GP practices, Lancashire Teaching Hospitals Trust, Lancashire and South Cumbria Foundation Trust, Clinical Commissioning Groups, the Strategic Clinical Network, local Councils, academic institutions and other partners.

The Board of Trustees refer to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aim and objectives and in planning future activities. In particular, the Board consider how planned activities will contribute to the aims and objectives they have set. This is undertaken on an annual basis and includes feedback from patients, families and local people. Patients and families are able to feedback direct through the hospice’s website and comments are reviewed at the Quality and Governance Sub-Committee, the Patients and Families Sub-Committee and the Knowledge Exchange Committee.

In addition to an annual audit, the charity also has its management accounts checked every month by an independent accountancy firm as an added level of scrutiny to protect the best interests of its donors and the Board.

Strategic Report

Background

St Catherine's Hospice opened in 1985 and has a highly respected reputation for effectively caring for people with life-shortening illnesses living in Central Lancashire.

The Chief Executive is responsible for the day-to-day running of the Hospice that is governed by a Board of Trustees. Specialised care services are clinically led by the Medical Director (who is one of four Consultants in Palliative Medicine working in the locality) supported by medical staff, doctors in different stages of training and nursing and social work teams that are led by the Director of Nursing, Governance & AHPs.

St Catherine’s plays a full and active part in the development of local, regional and national healthcare strategies through our links with local providers and bodies such as the Strategic Clinical Networks, the Palliative and End of Life Care Cross-Boundary Meeting, the Palliative and End of Life Care Strategy Group, the PLACE Virtual Wards Programme Group and many more influencing groups.

The charity works hard to maintain strong relationships with local people and surrounding communities including councils, other health providers, businesses, other charities and educational establishments. This engenders a genuine sense of local belonging and services that are continuously adapted to meet the needs and priorities of local people.

Objectives and activities

The purposes of the charity are clearly laid out in documents that build on the Memorandum and Articles of Association and Governance Manual. St Catherine’s vision is that everyone has quality of life to the end of life.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

The hospice works in partnership with patients and those important to them to help them achieve their wishes for the end of life. Our experienced team of doctors, nurses, social workers, counsellors and physiotherapists provide care and support to people at the hospice, in clinics and in their own homes. Our services are open to patients over the age of 18 regardless of race, religion, sexual orientation, age or diagnosis. We provide care to people with a range of diagnoses including cancer, neurological conditions and end stage respiratory and heart disease. We also provide support to families and carers including children and young people.

Services provided by St Catherine’s Hospice:

In-patient care, with 19 beds – the majority are single rooms with facilities for relatives to stay overnight;
Medical Outpatient Clinics which are led by palliative medicine consultants and speciality doctors;
Lymphoedema services for adults and children;
A Community Clinical Nurse Specialist Team provides expert advice and support for people in their own homes. The team holds a caseload of over 200 people at any one time;
A volunteer befriending service which provides respite for carers and helps to combat loneliness and isolation many people feel when experiencing serious illness;
A café and community hub called The Mill, 250m from the main hospice building; The Mill is within St Catherine's Park which is open to the public covering an area of about 22 acres. The aim is to take away the mystique of hospices and help people to feel welcome and comfortable. St Catherine's Park affords a space for relaxation, remembrance and reflection;
Support services include: physiotherapy, complementary therapies, hairdressing, psychological and spiritual care, family and bereavement support (led by qualified social workers);
Knowledge Exchange Services and a Communications Team underpin all hospice services and provide access to information and resources to help people help themselves through social media and our website. The Knowledge Exchange Team also supports health and social care professionals throughout Central Lancashire with training and education.

The charity encourages open access and actively seeks to involve patients, users and stakeholders in its decision making through accessible feedback channels online, in print and through the Patients and Families SubCommittee.

Main activities to deliver income include:

High quality care, information and advice
A strong, trusted reputation
Local relationships with individuals, organisations, businesses and other partners
Donations
Donations in Wills
Fundraising events
Lottery
Two newsletters a year to approximately 30,000 people
Communications through media, social media and leaflets
Hospice charity shops
The Mill café, community hub and catering service
Bids into public and charitable funds

Strategic planning and performance monitoring

The strategy for achieving the hospice's stated aim is clearly laid out in St Catherine's 5 year strategy, annual business plan and budget. Work commenced on a new 5-year strategy in 2020-2021 with Year 1 being 20212022.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

St Catherine's has robust strategic and operational development processes with monitoring at all levels and especially to the Board including detailed risk management plans. Staff and volunteer feedback is incorporated into the preparation of the business plan through regular team meetings, appraisals and one-to-one meetings. The Business Plan is also discussed through the staff and volunteer seminars.

The Board (currently 12 trustees) meet with senior officers at a planning day in December to consider key strategic developments and to review the external environment. The annual business plan and budget is finalised at a special Board Planning Day in March. At the same time, the hospice's 5 year-strategy is updated. The CEO and senior officers all support each Board meeting. Colleagues, from all levels of the organisation, have regular opportunities to meet board members including through quarterly formal visits carried out by trustees who then report back directly to the board.

The business plan which staff are involved in developing, is posted on the wall of each office and staff area. The Vision for St Catherine’s Hospice (Lancashire) Limited is:

Quality of Life To The End Of Life

Achieved through themes of: Patients & Families; Knowledge Exchange; Community & Income; Communications, Finance & Business

And values of: Caring, Compassionate and Committed

The business plan and budget is monitored each quarter through trustee-led committees that cover each theme through respective goals and standard reporting formats that measure progress with agreed actions and key performance indicators. These reports include red / amber / green grading in addition to agreed measurable data, qualitative information and risk management. Our main risks are to relationships, resources and reputation.

Committees, sub-committees and the Board receive regular information on patient feedback – including compliments and complaints - which include a live feedback system directly onto the hospice website; reports and follow-up action plans from regulatory inspections; reports from trustees who carry out four independent inspections of hospice activity annually; action plans following key reports and inquiries; specialist information with regard to Caldicott, Accountable Officer etc. They also consider media articles and reports.

The directors' team and managers' team also hold regular performance meetings with regard to the delivery of the business plan.

The last CQC inspection, 2019, graded St Catherine's as good overall and outstanding for care. Comments in the report are exceptional and can be viewed on the CQC website. A CQC engagement meeting took place in February 2022, and off-site data monitoring has continued throughout the pandemic which has indicated no requirement for the CQC to change their rating or to complete an inspection.

The ultimate measure of success is feedback from the community and levels of financial support received. The main tools for measuring success are included in the business plan, committee and board reporting frameworks. What matters most, is that the charity continues to meet the needs of local people.

New activities

St Catherine's develops new activities each year to ensure that the work of the charity is meeting local need. In 2021-2022 this new activity focussed on ensuring the hospice continued to provide services and carry out income generating activities during the pandemic whilst adhering to safety measures and government guidance.

Service Development

The hospice continues to play an active role in supporting the local health economy and is integrated with many service improvement forums such as The Big Room, the Central Lancashire Palliative and End of Life Care Cross Boundary Meeting, the Urgent and Emergency Care Oversight Group and many more.

Page 5

REPORT OF THE TRUSTEES (continued)

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

It is through this integrated working that the hospice, working in partnership with the CCGs, Lancashire Teaching Hospitals Trust and Lancashire and South Cumbria Foundation Trust, secured an additional £750k of recurrent funding for end-of-life care in Central Lancashire with a portion of funding going to each service provider. The hospice will expand its community service by 50% with this funding as well as creating new Compassionate Communities roles.
Recurrent funding for the Enhanced Advice Line instigated at the beginning of the pandemic has been formalised which provides specialist advice and support 24/7.
The Community Service engaged in a Continuous Improvement Programme with support from Lancashire Teaching Hospitals Trust. The aim of the programme is to improve productivity with a particular focus on first assessments, in order that the service may reach more people.
Telephone reviews, which commenced in the pandemic, have continued following positive feedback from patients alongside improvements in efficiency due to a reduction in travel time which ultimately will help us to reach more people.
Our In-Patient Unit continued to operate throughout the pandemic which included caring for people with COVID with the necessary safety precautions in place. Following a review and feedback from staff new positions have been created to free up nurses from administrative tasks which could be carried out by nonclinical personnel. The new posts of IPU Business Manager and IPU Administrator have been created alongside a Clinical and Development Manager which aims to provide nursing leadership and modernise nursing roles. This forms part of our strategy to enable nurses to spend more time with patients and families.
The Befriending service continued virtually throughout the pandemic with volunteers supporting patients and carers through telephone contact. The Carer and Bereavement Groups resumed face-to-face contact in the autumn of 2021.
The Knowledge Exchange Team continued to deliver virtual training which included sessions for care homes and District Nurses. We delivered 59 virtual sessions to 596 individuals. This included 233 first year UCLan students as their first exposure to palliative and end of life care and 100 4[th] Year Medical students.
The Research and Innovation Sub-Committee, convened in February 2020 with partners from UCLan, Lancashire Teaching Hospitals Trust, Lancashire Innovation Agency and South Cumbria and Lancashire Foundation Trust, grew from strength to strength in 2021/2022. The group is focussing on projects that will extend the reach of hospice services aided by digital connectivity.
The hospice won funding from the Masonic Charitable Trust for a project to look at barriers to accessing hospice services in the Black, Asian and Minority Ethnic communities. The first phase of the project in 2021/2022 was to quantify BAME hospice service needs and better monitor BAME inequitable representation in referral and uptake of services and build collaboration with communities within Central Lancashire.
The hospice recruited a new People team in 2021/2022 which has a remit for HR matters and volunteers as well as engagement and wellbeing. A new Employee Engagement Forum was set up and budget was agreed by trustees for a project to improve staff and volunteer facilities.
We continued to develop the resources section of the website which provided useful information on a variety of topics aiming to help people help themselves with grief and loss, anxiety, difficult conversations and much more. We saw an increase of 30% in the number of visits to these pages over 2021/2022.

Income Generation Activity

Much of the hospice’s trading activities resumed, albeit with restrictions still for the most part of the year. The shops and Mill Café saw a good bounce back in activity and income over the summer. The trading company ended the year in a particularly strong position.
We were able to make full use of the new Mill extension from the autumn with the number of covers rising from 63 to 89 by February 2022.
The lottery saw membership fall by 6% but held budget due to lower canvassing costs. Canvassing is set to resume in 2022/2023.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

The lottery saw membership fall by 6% but held budget due to lower canvassing costs. Canvassing is set to resume in 2022/2023.
We began to grow our e-Commerce activity, following the appointment of an e-Commerce Manager the previous year, with presence on selling sites such as Dis-Cogs, Vinted, De-Pop and Etsy as well as EBay and the hospice website.
We opened a special vintage pop up shop at the local University, UCLan which has been extremely popular with students and introduced the hospice to new customers.
We delivered our first Christmas Corporate Challenge which was a great success with 78 businesses taking part, including 13 who were new to the hospice. Their fundraising included Christmas Jumper Days, staff raffle’s, cake sales and quizzes.
We were still unable to hold in-person events over the summer due to on-going restrictions but maintained profile through the virtual versions. The virtual Yellow Day was a particular success with 39 events taking place all over the local community.
We were able to hold our very special Light Up A Life Service in-person in December which was well attended by the local community who attend to join together and remember loved ones. This was just ahead of the Omicron wave of the pandemic and lockdown in January.
We delivered our first regular giving campaign in quarters 1 and 2 which focussed on attracting new supporters through online and digital channels. The campaign brought in 84 new regular givers in the year.
The new Tribute section on the website went live in 2021. This provides families with the opportunity to create bespoke sites to remember loved ones on the hospice website.
Social media channels were further developed with a 147% increase in LinkedIn Connections, 1.6% increase in Facebook followers and 2.25% increase in Facebook engagement.

Further details of achievements are available on the hospice website and via Facebook and Twitter feeds.

The charity is extremely grateful for the dedication of its many volunteers who are involved in every area of the Hospice's activity. Around 900 volunteers give freely of their time and talents to help in the Hospice, at events, in charity shops, fundraising, administration, and in many other activities.

Finally, St Catherine’s continues to be deeply grateful for the remarkable generosity that continues to be shown by the people of Central Lancashire.

Achievements and Performance for Public Benefit

Information on the services and achievements of the charity is included in the Annual Review which is circulated at the AGM in October each year and is available thereafter. Website and social media outputs provide daily updates of activity and the public can comment – positively or critically - on services received from St Catherine's, directly onto the website.

The number of beneficiaries supported in 2021-2022 by each service are:

Community Clinical Nurse Specialist Service – 688 The Advice Line for health professionals, patients and carers – 1,549 Lymphoedema – 388 In Patient Unit – 232 The Support Team – 327 Allied Health Professionals – 194 Knowledge Exchange: Education and Training - 596

Page 7

REPORT OF THE TRUSTEES (continued)

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

Ethical fundraising

St Catherine's adheres to the high ethical standards set by the Fundraising Regulators Fundraising Code of Practice, to ensure all fundraising activities are legal, open, honest and respectful.

The Hospice carries out all its own fundraising with just one exception: lottery membership canvassing, some of which is carried out by a third party. The company concerned, Supporting Essential Charities Fundraising Ltd (SEC) has an immaculate reputation and attracts new membership from a lottery booth in public places such as shopping malls, DIY stores and supermarkets - canvassing in these outlets re-commenced in the last quarter of the financial year. Due to falling members and in line with many other hospices trustees have decided to resume door-to-door canvassing after fourteen years in 2022-2023 with SEC as the provider.

The Head of Promotions and Director of Community and Income meet regularly with SEC to monitor their work. Trustees oversee the fundraising activity of the Hospice and third party fundraisers.

We monitor and record the number of complaints we receive each year and share this data with the Fundraising Regulator on request, no formal complaints have been received about the third party or about the charity's fundraising activity this year and there have been no requests from the Fundraising Preference Service to remove any names from our mailing list.

Relevant training on the policy is provided to all staff and volunteers involved in fundraising, lottery and trading and also SEC fundraising.

Financial Review

The statements of financial activities for the year are set out on pages 15 and 16 of the financial statements.

Group income for the year was £9,131k (2021: £7,630k) and the income to the charity was £7,341k (2021: £6,245k).

Group expenditure for the year was £7,218k (2021: £6,787k) and the expenditure for the charity was £5,449k (2021: £5,529k).

Overall group surplus for the year was £1,949k (2021: £970k) and the surplus to the charity was £1,882k (2021: £725k).

Reserves

Total reserves at 31 March 2022 are £14,894k, of which £7,425k are general unrestricted reserves, £7,447k are designated reserves, and £22k are restricted reserves.

Since St Catherine’s is a charity, income is potentially vulnerable because of a high level of dependence upon voluntary giving. Therefore, having regard to the needs of patients and their families for the continuity of the range of care provided by St Catherine's Hospice, together with the obligations of the Hospice towards its employees, it is the policy of the trustees to hold prudent levels of available reserves. Accordingly, as far as is reasonably practicable, the trustees will endeavour to maintain such reserves at a level of between 6 and 12 months of budgeted expenditure. This policy has been more accurately defined through an analysis of the most likely risks to income.

The build-up of high levels of liquid assets within the charity is to maintain Hospice contingency reserves at a level that has been calculated through an assessment of likely risks. The current level is £2.4m and is reviewed regularly. Available free reserves, which represent the unrestricted funds net of the reserve policy of £2.4m, are £5,025k (2021: £3,109k).

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Investment policy

The group’s investments are held by The John Thacker Charitable Trust, charity number 1017345. Details of the investment policy and performance can be found in these accounts.

Internal financial control / Risk management

The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

A 5 Year Strategy, Annual Business Plan and an annual budget approved by the Board of Trustees.
Regular consideration by the trustees of financial results, variances from budgets, non-financial performance indicators and benchmarking reviews; in particular through the Finance & Resources Committee and the Board.
Delegation of authority and, insofar as is practicable, segregation of duties.
Identification and management of risks in conjunction with the organisation's insurers.

A formal risk management process to assess business risk and to implement risk management strategies is in place. This includes reviewing the adequacy of the charity's current internal controls and the Board is pleased to report that the charity's internal financial controls conform to the guidelines issued by the Charity Commission.

In addition, trustees have considered the guidance for directors of public listed companies contained within the Turnbull Report. They believe that, although this is not mandatory, the charity should, as a public interest body, adopt these guidelines as best practice. Accordingly, they are seeking to:

Set policies on internal controls which cover the following:
Consideration of the type of risk the charity faces;
The level of risk which they regard as acceptable;
The likelihood of the risk concerned materialising;
The charity's ability to reduce the incidence and impact on the business of risks that do materialise;
The costs of operating particular controls relative to the benefit obtained.
Clarify the responsibility of management to implement the trustees’ policy and to identify and evaluate risks for their consideration.
Communicate that employees have responsibility for internal control as part of their accountability for achieving objectives.
Embed the control system in the charity's operations so that it becomes part of the culture of the charity.
Develop systems to respond quickly to evolving risks arising from factors within the charity and to changes in the external environment.
Include procedures for reporting failings immediately to appropriate levels of management and the trustees together with details of corrective action being undertaken.

The finance function is overseen by the Director of Finance & Business supported by an independent outsourced accountancy service. This, in addition to external audit arrangements, enhances transparency and financial security.

Plans for future periods

The new five year plan is underway with 2021/2022 being the first year. Over the next period we plan to grow our community service, develop a Compassionate Communities programme, expand our bereavement and social support as well as bring in new skills to the organisation such as Advanced Clinical Practitioner and a Health Psychologist. Plans also include investment in income generation activities such as our trading estate to capitalise on the growing popularity of charity shops and awareness of the sustainability agenda for ‘pre-loved’ goods.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Relationship with Subsidiaries

St Catherine’s has 5 subsidiary entities; St Catherine’s Hospice Trading Ltd, St Catherine’s Hospice Promotions Ltd, The John Thacker Charitable Trust, St Catherine’s Community Services Ltd and St Catherine’s Social Enterprise Ltd.

St Catherine’s Hospice Promotions Ltd operates a weekly lottery and raffles.

St Catherine’s Hospice Trading Ltd operates charity shops throughout the area selling new goods, donated goods and furniture.

St Catherine’s Community Services Ltd has been set up to operate as an agent for domiciliary care services but has not traded during the year.

St Catherine’s Social Enterprise Ltd operates as the governance vehicle for The Mill at St Catherine's Park that opened in autumn 2014.

The John Thacker Trust was created utilizing a bequest left to St Catherine’s Hospice by John Thacker who died in 1991. The capital and the income of the Trust Fund is for the benefit of St Catherine’s Hospice Ltd.

Employee involvement and policies

Active encouragement is given to all staff and volunteers to play their full part in the life of the Hospice.

In 2021/22 a new People team was created headed up by the new post of Director of People and Organisational Development. This team is responsible for employee and volunteer relations as well as driving forward the hospice’s engagement, values and wellbeing plans.

Subsequently, a new employee engagement forum has been established which has over 25 members representing the various teams across the Hospice. They meet monthly to discuss key issues and aspects of working at the Hospice. Topics have included communication and wellbeing. In addition, the volunteer forum was relaunched in early 2022 and provides a valuable volunteer voice. Both forums generate ideas and help inform the running of the Hospice and how we can continually ensure it is a great place to work.

Hospice policies are regularly reviewed, and managers are key stakeholders within the review process with comments sought regularly.

The bi-annual staff survey was conducted in 2021, 97% of respondents believe in the aims of St Catherine’s, 96% enjoy the work they do and working with their colleagues and 94% are proud to work at St Catherine’s. The 2022/23 People Action Plan was built on feedback from the staff survey and a series of values workshops held in late 2021.

All staff are involved in preparing and reviewing the annual business plan and risk register that are subsequently approved by the Board.

Fundraising standards and policies

The charity ensures continued high ethical fundraising standards and compliance with the Fundraising Regulator Code of Fundraising Practice in a number of ways.

St Catherine’s Hospice is registered with the Fundraising Regulator, demonstrating that the hospice is serious about high standards. Registration includes entry on our public register and a registration badge, which will increasingly be recognised by the public, to use on all our fundraising materials.
Fundraising activity is regularly monitored and reviewed to ensure that methods still meet the emerging requirements of the Fundraising Regulator.
Contracts held with external fundraising organisations, e.g. lottery canvassers, include strict standards of conduct and regular meetings take place with the companies to review progress and compliance.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Trustees’ responsibilities statement

The Board of trustees (who are also directors of the charity for the purposes of company law) are responsible for overseeing the preparation of the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for their approval. (Further details regarding trustee responsibilities are described in St Catherine’s Governance Manual .)

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2019 (FRS102);
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

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

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

Auditor

A resolution proposing that MHA Moore and Smalley be re-appointed as auditor of the charity will be put to the Annual General Meeting.

This report which incorporates the Strategic Report was approved by the Board of Trustees on 10 October 2022.

………………………….

Mr J G Chesworth - Chairman

St Catherine's Hospice Lostock Lane Lostock Hall Preston PR5 5XU

Page 11

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

Opinion

We have audited the financial statements of St Catherine's Hospice (Lancashire) Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022, which comprise Group Statement of Financial Activities, Company Statement of Financial Activities, Group Balance Sheet, Company Balance Sheet, Group Cash Flow Statement 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 FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2022, and of group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent 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.

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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 course of 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.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS (continued)

Opinion on other matters prescribed by the Companies Act 2006

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

the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

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

adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Respective responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act.

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.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS (continued)

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
Enquires with management about any known or suspected instances of fraud;
Review of minutes of board meetings;
Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls;
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.

Because of the field in which the client operates we identified that employment law, health and safety legislation, Care Quality Commission (CQC) compliance, and compliance with the UK Companies Act are the areas most likely to have a material impact on the financial statements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of report

This report is made solely to the charitable company’s members, as a body, in accordance with the 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.

………………………….

Christine Wilson (Senior Statutory Auditor) For and on behalf of MHA Moore and Smalley Chartered Accountants & Statutory Auditor Preston

24/10/2022 Date: ………………

Page 14

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

GROUP STATEMENT OF FINANCIAL ACTIVITES (INCLUDING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

General Unrestricted Funds Note £’000 Income from: Donations and legacies 1 2,929 Charitable activities: NHS Core funding 1,433 Other grants & income 2 762 Other trading activities 3 3,253 Investment income 4 76 Other income – Coronavirus grants 4 383 Total income 8,836 Expenditure on: Raising funds 5 1,939 Charitable activities 6 4,700 Total expenditure 6,639 Net income/(expenditure) before other gains 8 2,197 and losses Gain/(loss) on investments 14 36 Net income/(expenditure) 2,233 Transfers between funds 18 (317) Net movement in funds 1,916 Reconciliation of funds: Total funds b/fwd 5,509 Total funds c/fwd 18 7,425	Designated Funds Restricted Funds £’000 £’000 - 36 - - - - - - - - - 259 - 295 34 - 234 311 268 311 (268) (16) - - (268) (16) 317 - 49 (16) 7,398 38 7,447 22	2022 Total £’000 2,965 1,433 762 3,253 76 642 9,131 1,973 5,245 7,218 1,913 36 1,949 - 1,949 12,945 14,894	2021 Total £’000 1,647 1,405 823 1,960 60 1,735
			7,630
			1,475 5,312
			6,787
			843 127
			970 -
			970 11,975
			12,945

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. The surplus for the year for Companies Act purposes comprises the net incoming resources for the year net of unrealised profits and losses on investments and was £1,913k (2021: £843k).

Page 15

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

COMPANY STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

General Unrestricted Funds Note £’000 Income from: Donations and legacies 1 2,929 Charitable activities: NHS Core funding 1,433 Other grants & income 2 762 Other trading activities 3 1,800 Investment income 4 114 Other income – Coronavirus grants 4 8 Total income 7,046 Expenditure on: Raising funds 5 216 Charitable activities 6 4,688 Total expenditure 4,904 Net income/(expenditure) before other gains 8 2,142 and losses Gain/(loss) on investments 14 (10) Net income/(expenditure) 2,132 Transfers between funds 18 (271) Net movement in funds 1,861 Reconciliation of funds: Total funds b/fwd 2,969 Total funds c/fwd 18 4,830	Designated Funds Restricted Funds £’000 £’000 - 36 - - - - - - - - - 259 - 295 - - 234 311 234 311 (234) (16) - - (234) (16) 271 - 37 (16) 7,385 38 7,422 22	2022 Total £’000 2,965 1,433 762 1,800 114 267 7,341 216 5,233 5,449 1,892 (10) 1,882 - 1,882 10,392 12,274	2021 Total £’000 1,647 1,405 823 1,213 98 1,059
			6,245
			229 5,300
			5,529
			716 9
			725 -
			725 9,667
			10,392

Page 16

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

GROUP BALANCE SHEET

AS AT 31 MARCH 2022

General Unrestricted Funds Note £’000 Fixed assets Tangible assets 13 - Investments 14 1,622 1,622 Current assets Stock 15 9 Debtors 16 1,098 Cash at bank and in hand 6,037 7,144 Liabilities– Creditors falling due within one year 17(a) (1,015) Net current assets 6,129 Liabilities– Creditors falling due after one year 17(b) (326) Net assets 7,425 Represented by: Total Funds 18 7,425	Designated Funds Restricted Funds £’000 £’000 6,414 - - - 6,414 - - - - - 1,033 22 1,033 22 - - 1,033 22 - - 7,447 22 7,447 22	2022 Total £’000 6,414 1,622 8,036 9 1,098 7,092 8,199 (1,015) 7,184 (326) 14,894 14,894	2021 Total £’000 6,498 1,405
			7,903
			4 1,211 6,557
			7,772 (2,296)
			5,476
			(434)
			12,945
			12,945

These accounts were approved by the Board on 10 October 2022 and signed on its behalf:

………………………………………….. ………………………………………….. Mr J G Chesworth – Chairman Mrs L Norris – Trustee

Company Registration Number: 01602467

Page 17

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

COMPANY BALANCE SHEET

AS AT 31 MARCH 2022

General Unrestricted Funds Note £’000 Fixed assets Tangible assets 13 - Investments 14 517 517 Current assets Debtors 16 1,976 Cash at bank and in hand 3,388 5,364 Liabilities– Creditors falling due within one year 17(a) (725) Net current assets 4,639 Liabilities– Creditors falling due after one year 17(b) (326) Net assets 4,830 Represented by: Total Funds 18 4,830	Designated Funds Restricted Funds £’000 £’000 5,710 - - - 5,710 - 679 - 1,033 22 1,712 22 - - 1,712 22 - - 7,422 22 7,422 22	2022 Total £’000 5,710 517 6,227 2,655 4,443 7,098 (725) 6,373 (326) 12,274 12,274	2021 Total £’000 5,785 342
			6,127
			2,882 3,892
			6,774 (2,075)
			4,699
			(434)
			10,392
			10,392

These accounts were approved by the Board on 10 October 2022 and signed on its behalf:

…………………………………………..

Mr J G Chesworth – Chairman

………………………………………….. Mrs L Norris – Trustee

Company Registration Number: 01602467

Page 18

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

GROUP CASHFLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2022

Cash flows from operating activities Net movement in funds Adjustments for: Investment income (Profit)/loss on investments (Profit)/loss on disposal of fixed assets Depreciation Changes in: (Increase)/Decrease in stock (Increase)/Decrease in debtors Increase/(Decrease) in creditors Cash provided by / (used in) operating activities Cash flows from investing activities Investment income Purchase of tangible fixed assets Proceeds from sale of fixed assets Movement in cash held as investments Proceeds from sale of investments Purchase of investments Cash provided by / (used in) investing activities Cash flows from financing activities New bank loan Repayment of bank loans Cash provided by / (used in) financing activities Increase/(decrease) in cash and cash equivalents in the year Cash and cash equivalents b/fwd Cash and cash equivalents c/fwd	Group 2022 Total £’000 1,949 (76) (36) (56) 324 (5) 113 (1,269) 944 76 (310) 126 6 572 (759) (289) - (120) (120) 535 6,557 7,092	Group 2021 Total £’000 970 (60) (127) (2) 360 3 (358) 1,179 1,965 60 (180) 2 (20) 335 (311) (114) 539 (63) 476 2,327 4,230 6,557	Company 2022 Total £’000 1,882 (114) 10 (59) 293 - 227 (1,338) 901 114 (285) 126 - - (185) (230) - (120) (120) 551 3,892 4,443	Company 2021 Total £’000 725 (98) (9) - 321 - (504) 1,212
				1,647
				98 (123) - - - -
				(25)
				539 (63)
				476
				2,098 1,794
				3,892

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

GROUP CASHFLOW STATEMENT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Analysis of changes in net funds

Group Cash and cash equivalents Cash in hand Cash at bank Borrowings Bank loans due within one year Bank loans after one year Net funds Company Cash and cash equivalents Cash in hand Cash at bank Borrowings Bank loans due within one year Bank loans after one year Net funds	Brought forward Cashflows £’000 £’000 2 1 6,555 534 6,557 535 (121) 120 (434) - (555) 120 6,002 655 Brought forward Cashflows £’000 £’000 1 - 3,891 551 3,892 551 (121) 120 (434) - (555) 120 3,337 671	Other non-cash changes £’000 - - - (108) 108 - - Other non-cash changes £’000 - - - (108) 108 - -	Carried forward £’000 3 7,089
			7,092
			(109) (326)
			(435)
			6,657
			Carried forward £’000 1 4,442
			4,443
			(109) (326)
			(435)
			4,008

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 MARCH 2022

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 accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £000.

St Catherine’s Hospice (Lancashire) Limited meets the definition of a public benefit entity under FRS 102.

The charity has availed itself of Paragraph 4(1) of Schedule 1 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and adapted the Companies Act formats to reflect the special nature of the charity’s activities.

Going concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.

Going into 2021/22 some uncertainty still surrounded the potential impact the Covid-19 pandemic may have on the operations of the charity. However, following the end of the final lockdown on 12 April 2021 the charity’s shops and the Mill Café remained open for the rest of the financial year, albeit with social distancing restrictions staying in place for part of the year. Community support events did not take place over the summer again and were run virtually, although our Light Up a Life remembrance event was able to take place in the Hospice grounds in December 2021. The subsidiary trading companies did return to pre-pandemic levels of turnover and profitability during 2021/22 and this is expected to continue into 2022/23. The charity is budgeting a deficit for 2022/23, but the organisation is resilient to this, having sufficient reserves to draw on. In light of the economic uncertainty it has been agreed that forecasts during the year will be regularly reviewed. During 2021/22 the charity received additional government funding via Hospice UK which, along with income from Wills, contributed to the significant surplus generated in 2021/22. Given the significant surplus the Board of Trustees are looking at using some reserves to invest in the growth of income generation activities in 2022/23 with a view to making the charity more sustainable in future years.

The trustees have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charity’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Company status

The charity is a company limited by guarantee. The members of the company are the trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Group financial statements

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The company owns all the share capital of St Catherine's Hospice Trading Ltd, St Catherine's Hospice Promotions Ltd, St Catherine’s Community Services Ltd and St Catherine’s Social Enterprise Ltd. The taxable profits of the subsidiaries are paid to the company under Gift Aid.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

The John Thacker Charitable Trust is a registered charity and holds funds which are to be applied for the benefit of St Catherine’s Hospice (Lancashire) Limited. The Trustees presently comprise the trustees of the Hospice Board. The total assets held within the Trust were £2,361k (2021: £2,310k) and have been consolidated on a line by line basis into these accounts.

Fund accounting

General funds - unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds - unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the accounts.

Restricted funds - to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the accounts.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity 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 and is not deferred.

NHS income comprises grant and contract income receivable via NHS Commissioners.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material (see note 20).

Income received in advance of an event or provision of other specific provision of other specified service is deferred until the criteria for income recognition are met (see note 17).

Trading income is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes where applicable. Income from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), no amounts are included in the financial statements for services donated by volunteers.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Donated services and facilities (continued)

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity 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.

Expenditure

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.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources. Detailed analyses of the expenditure, including irrecoverable VAT where applicable, are provided in the notes to the accounts.

Tangible fixed assets

Tangible fixed assets costing more than £1,000 are generally capitalised and included at cost including any incidental expenses of acquisition. This general policy is subject to the capital nature of project, smaller items may be capitalised if part of a bigger project and higher values may be expensed if part of a cyclical maintenance programme. Any development work to be capitalised will be depreciated on completion of the project.

Depreciation is provided on fixed assets to write off the cost over their estimated useful lives on a straight-line basis at the following principal rates per annum:

Freehold buildings	-	2% on cost
Leasehold improvements	-	evenly over the term of the lease
Fixtures and equipment	-	20% on cost
Motor vehicles	-	25% on cost
Computer equipment	-	331/3% on cost

Investments

Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Stock

Stock is included at the lower of cost and net realisable value. Items donated for resale or distribution are not included in the financial statements until they are sold or distributed, on the basis that it is considered impractical to measure the fair value of goods donated for resale, and the costs of valuation outweigh the benefit to users of the accounts and the charity of this information.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The charity 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.

Pension costs

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the SOFA. The company also contributes to a multi-employer defined benefit scheme, as detailed in the staff costs note. As the proportion of the fund attributable to charity cannot be calculated this scheme has been treated as if it was a defined contribution scheme.

Operating leases

Rentals applicable to operating leases are charged to the SOFA on a straight-line basis over the term of the lease.

Taxation

The Company is a registered charity and consequently there is no liability to taxation.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The trustees do not believe that there are any estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

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ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

1 Income from donations and legacies

Donations – General Donated Goods Donations in Wills Income from Charitable Trusts Sub-total – unrestricted Restricted Income Income from Charitable Trusts 2 Income from charitable activities NHS Funding – Non Core Education and other income Other grants received Unrestricted Restricted Income Education and other income 3 Income from other trading activities Fundraising Lottery and raffles Trading income Social Enterprise Unrestricted 4 Investment income Rental income Investment income - dividends Investment income - interest Unrestricted	Group 2022 2021 £’000 £’000 674 735 174 26 2,050 743 31 126 2,929 1,630 36 17 2,965 1,647 445 445 317 328 - - 762 773 - 50 762 823 396 370 853 811 1,100 455 904 324 3,253 1,960 45 20 12 11 19 29 76 60	Company 2022 2021 £’000 £’000 674 735 174 26 2,050 743 31 126 2,929 1,630 36 17 2,965 1,647 445 445 317 328 - - 762 773 - 50 762 823 396 370 525 546 695 297 184 - 1,800 1,213 86 67 - - 28 31 114 98	Company 2022 2021 £’000 £’000 674 735 174 26 2,050 743 31 126 2,929 1,630 36 17 2,965 1,647 445 445 317 328 - - 762 773 - 50 762 823 396 370 525 546 695 297 184 - 1,800 1,213 86 67 - - 28 31 114 98
			1,630 17
			1,647
			445 328 -
			773 50
			823
			370 546 297 -
			1,213
			67 - 31
			98

Other unrestricted income (group) comprises £17k (2021: £403k) Coronavirus Job Retention Scheme (‘CJRS’) income, £298k (2021: £232k) insurance proceeds due to business interruption, and £68k (2021: £175k) of Retail Grants. Other unrestricted income (company) comprises £8k (2021: £134k) CJRS income. Other restricted income (group and company) comprises £259k (2021: £925k) of NHSE funding.

Page 25

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

5 Analysis of expenditure on raising funds

Fundraising Lottery & raffles Trading Social Enterprise Community services £’000 £’000 £’000 £’000 £’000 Group Staff costs 164 103 339 423 - Supplies & services – general 52 185 37 264 - Insurance, utilities & maintenance - - 222 47 - Other support costs & fees - 12 23 6 - Investment management costs 16 - - - - Financial charges - 24 17 5 - Depreciation & fixed asset disposals - - 12 22 - 232 324 650 767 - Unrestricted 232 324 638 745 - Designated - - 12 22 - 232 324 650 767 - Fundraising £’000 Company Staff costs 164 Supplies & services – general 52 216 Unrestricted 216 216	2022 Total £’000 1,029 538 269 41 16 46 34 1,973 1,939 34 1,973 2022 Total £’000 164 52 216 216 216	2021 Total £’000 750 361 245 34 14 34 37 1,475 1,436 39 1,475 2021 Total £’000 166 63 229 229 229

Page 26

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

6 Analysis of expenditure on charitable activities

Hospice and specialised palliative care services Information and education £’000 £’000 Group Staff costs 3,931 117 Supplies & services – clinical 172 - Supplies & services – general 60 - Insurance, utilities & maintenance 188 - Catering 64 - IT costs 212 - Other support costs & fees 230 - Governance costs (see note 7) 12 - Financial charges 25 - Depreciation & fixed asset disposals 234 - 5,128 117 Unrestricted 4,583 117 Designated 234 - Restricted 311 - 5,128 117 Hospice and specialised palliative care services Information and education £’000 £’000 Company Staff costs 3,931 117 Supplies & services – clinical 172 - Supplies & services – general 60 - Insurance, utilities & maintenance 188 - Catering 64 - IT costs 212 - Other support costs & fees 218 - Governance costs (see note 7) 12 - Financial charges 25 - Depreciation & fixed asset disposals 234 - 5,116 117 Unrestricted 4,571 117 Designated 234 - Restricted 311 - 5,116 117	2022 Total £’000 4,048 172 60 188 64 212 230 12 25 234 5,245 4,700 234 311 5,245 2022 Total £’000 4,048 172 60 188 64 212 218 12 25 234 5,233 4,688 234 311 5,233	2021 Total £’000 4,097 203 34 169 36 168 251 9 24 321 5,312 4,021 321 970 5,312 2021 Total £’000 4,097 203 34 169 36 168 239 9 24 321 5,300 4,009 321 970 5,300

Page 27

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

7 Governance costs

Audit fees – charity only Meeting and other support costs Net income/(expenditure) Stated after charging: Audit fees Depreciation – owned assets (Profit)/loss on disposal of assets Operating lease rentals	Group 2022 2021 £’000 £’000 6 6 6 3 12 9 15 13 324 360 (56) (2) 84 122	Company 2022 2021 £’000 £’000 6 6 6 3 12 9 6 6 293 321 (59) - - -

8 Net income/(expenditure)

9 Summary analysis of expenditure and related income for charitable activities

Hospice and specialised palliative care services Information and education £’000 £’000 Group & Company Costs (5,128) (117) NHS Income 1,878 - Education and other income - 317 (3,250) 200 Other grants received - - Net costs (funded) from other income (3,250) 200	2022 Total £’000 (5,245) 1,878 317 (3,050) - (3,050)	2021 Total £’000 (5,312) 1,850 378 (3,084) - (3,084)

Page 28

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

10 Staff numbers

The average monthly head count was 157 staff (2021: 156 staff) and the average monthly number of fulltime equivalent employees (including casual and part-time staff) during the year were as follows:

Chief Executive’s Department Care Services Directorate Technical Services Directorate Income Generation Directorate Knowledge Exchange Directorate Hospice total St Catherine’s Hospice Trading Ltd St Catherine’s Hospice Promotions Ltd St Catherine’s Social Enterprise Ltd Group total	2022 No. 6 72 16 7 4 105 13 5 10 133	2021 No. 5 74 19 7 4
		109 13 5 7
		134

Page 29

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

11 Analysis of staff costs, trustee remuneration and expenses, and cost of key management personnel

personnel
Payroll costs were Group 2022 £’000 2021 £’000 Wages and salaries 4,376 4,130 National Insurance 367 349 Pension costs 334 368 5,077 4,847 The number of employees whose emoluments exceeded £60K were: £60K-£70K £70K-£80K	Company 2022 £’000 2021 £’000 3,589 3,598 318 319 305 346 4,212 4,263 2022 2021 No. No. 1 1 1 -
		4,263
		2021 No. 1 -

Along with a standard defined contribution scheme, the company operates an exempt approved defined benefit scheme, namely the National Health Superannuation Scheme. The assets of this scheme are held separately and contributions to the scheme are charged to the statement of financial activities so as to spread the cost of pensions over employees’ working lives with the company. This scheme does not have a real pension fund, but as a statutory scheme, benefits are fully guaranteed by the Government. Contributions from both members and employers are paid to the Exchequer, which meet the cost of increasing benefits each year by the rate of inflation. This extra cost is not met by contributions from scheme members and employers. As a result of the nature of the scheme there are no separately identifiable assets and liabilities which can be identified as relating to St Catherine’s Hospice therefore, as permitted by FRS102, the scheme has been accounted for as a defined contribution scheme. At the year-end £48k (2021: £47k) was owed in respect of contributions.

The charity trustees were not paid and did not receive any other benefits from employment with the charity or its subsidiaries in the year (2021: £nil), neither were there reimbursed expenses during the year (2021: £nil). Trustees made donations to the charity totalling £1,864 (2021: £1,660).

During the year, the Hospice was invoiced for professional services totalling £1,256 (2021: £1,470) by Harrison Drury & Co Ltd, a company in which Mr J G Chesworth is a director. At the year end £nil (2021: £nil) was due to this company. The Hospice was invoiced for professional services totalling £6,293 (2021: £500) by Forbes Solicitors, where Mr J J Holden is a partner. At the year end £nil (2021: £nil) was due to this company. The Hospice was also invoiced £2,805 (2021: £4,805) for website development costs by Blue Wren Limited, a company in which Mr M J Lough is a director. At the year end £1,267 (2021: £nil) was due to this company. This company was selected following a competitive tendering process, and Mr M J Lough played no part in the award of the contract.

The key management personnel of the parent charity and the group are detailed on page 1. The total employee benefits of the key management personnel were £464,389 (2021: £506,402).

Charity trustees’ indemnity and professional indemnity insurance has been provided for members of the Board, this cost is included within other insurance costs and not separately identifiable.

12 Related party transactions

There were no related party transactions during the current or prior year, apart from those disclosed above relating to the trustees.

Page 30

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

13 Tangible fixed assets Group Cost As at 1 April 2021 Additions Disposals As at 31 March 2022 Depreciation As at 1 April 2021 Charge for the year Disposals As at 31 March 2022 Net book value As at 31 March 2022 As at 31 March 2021 Company Cost As at 1 April 2021 Additions Disposals As at 31 March 2022 Depreciation As at 1 April 2021 Charge for the year Disposals As at 31 March 2022 Net book value As at 31 March 2022 As at 31 March 2021	Freehold land and buildings Leasehold improvements £’000 £’000 8,712 71 188 - (100) (27) 8,800 44 2,458 67 193 1 (33) (24) 2,618 44 6,182 - 6,254 4 7,966 - 188 - (100) - 8,054 - 2,396 - 176 - (33) - 2,539 - 5,515 - 5,570 -	Fixtures and equipment £’000 2,265 122 (82) 2,305 2,025 130 (82) 2,073 232 240 1,930 97 - 2,027 1,715 117 - 1,832 195 215	Total £’000 11,048 310 (209)
			11,149
			4,550 324 (139)
			4,735
			6,414
			6,498
			9,896 285 (100)
			10,081
			4,111 293 (33)
			4,371
			5,710
			5,785

At the year end there were capital commitments of £nil (2021: £10k).

Page 31

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

14 Fixed asset investments

Fixed asset investments
Investments in subsidiary companies Other investments	Group 2022 2021 £’000 £’000 - - 1,622 1,405 1,622 1,405	Company 2022 2021 £’000 £’000 20 20 497 322 517 342
			342

Investments in subsidiary companies

All subsidiary companies are incorporated in the UK and are wholly owned. The details of the subsidiaries and the results for the year are as follows:

Turnover Cost of sales and other direct costs Administrative expenses Other operating income Interest payable Profit/(Loss) for the year Charitable donations to Hospice Retained Profit/(Loss) for the year Turnover Cost of sales and other direct costs Administrative expenses Other operating income Interest received Profit/(Loss) for the year Charitable donations to Hospice Retained Profit/(Loss) for the year	St Catherine’s Hospice Trading Ltd £’000 1,100 (14) (680) 304 - 710 (695) 15 St Catherine’s Hospice Trading Ltd £’000 455 (17) (640) 488 - 286 (297) (11)	2022 St Catherine’s Hospice Promotions Ltd St Catherine’s Community Services Ltd £’000 £’000 853 - (174) - (154) - 1 - - - 526 - (525) - 1 - 2021 St Catherine’s Hospice Promotions Ltd St Catherine’s Community Services Ltd £’000 £’000 811 - (168) - (140) - 44 - - - 547 - (546) - 1 -	St Catherine’s Social Enterprise Ltd £’000 904 (259) (513) 70 (18)
			184 (184)
			-
			St Catherine’s Social Enterprise Ltd £’000 324 (87) (239) 144 (17)
			125 -
			125

Page 32

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

14 Fixed asset investments (continued)

Investments in subsidiary companies

Fixed assets Current assets Current liabilities Net assets/(liabilities) Ordinary £1 shares Profit and loss account Net assets/(liabilities) Fixed assets Current assets Current liabilities Net assets/(liabilities) Ordinary £1 shares Profit and loss account Net assets/(liabilities)	St Catherine’s Hospice Trading Ltd £’000 25 424 (418) 31 10 21 31 St Catherine’s Hospice Trading Ltd £’000 13 332 (329) 16 10 6 16	2022 St Catherine’s Hospice Promotions Ltd St Catherine’s Community Services Ltd £’000 £’000 - - 356 - (344) - 12 - 10 - 2 - 12 - 2021 St Catherine’s Hospice Promotions Ltd St Catherine’s Community Services Ltd £’000 £’000 - - 350 - (339) - 11 - 10 - 1 - 11 -	St Catherine’s Social Enterprise Ltd £’000 679 216 (659) 236 - 236 236 St Catherine’s Social Enterprise Ltd £’000 700 216 (680) 236 - 236 236

The company number of each subsidiary is as follows:

St Catherine’s Hospice Trading Ltd - 02833331 St Catherine’s Hospice Promotions Ltd - 02767558

St Catherine’s Community Services Ltd - 08489132 St Catherine’s Social Enterprise Ltd - 08782309

Page 33

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

14 Fixed asset investments (continued)

Other investments

Group
UK
Equities
£’000
Market value
As at 1 April 2021
1,231
Additions
574
Disposals
(572)
Movement in cash deposits held as investments
(6)
Change in market value
36
As at 31 March 2022
1,263
Company
UK
Equities
£’000
Market value
As at 1 April 2021
148
Additions
-
Disposals
-
Change in market value
(10)
As at 31 March 2022
138
15
Stock
Group
2022
2021
£’000
£’000
Goods for resale
9
4

UK
Property
Total
£’000
£’000
174
1,405
185
759
-
(572)
-
(6)
-
36
359
1,622
UK
Property
Total
£’000
£’000
174
322
185
185
-
-
-
(10)
359
497
Company
2022
2021
£’000
£’000
-
-

Page 34

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

16 Debtors

Trade debtors Amounts owed by group undertakings VAT recoverable Other debtors Prepayments and accrued income	Group 2022 2021 £’000 £’000 134 199 - - 224 474 22 58 718 480 1,098 1,211	Company 2022 2021 £’000 £’000 125 199 1,930 1,983 224 474 13 51 363 175 2,655 2,882	Company 2022 2021 £’000 £’000 125 199 1,930 1,983 224 474 13 51 363 175 2,655 2,882
			2,882

17 Creditors

(a) Amounts falling due with one year

(a) Amounts falling due with one year
Bank loan Trade creditors Other taxes and social security Advance lottery receipts Other creditors Accruals and deferred income	Group 2022 2021 £’000 £’000 109 121 229 151 116 81 122 117 56 55 383 1,771 1,015 2,296	Company 2022 2021 £’000 £’000 109 121 185 110 89 81 - - 53 53 289 1,710 725 2,075
			2,075

Accruals and deferred income at the year end includes deferred income relating to various events due to take place or work to be performed after the year end, as follows:

Balance b/fwd Amount released to income earned from charitable activities Amount deferred in year Balance c/fwd (b) Amounts falling due after one year Bank loan	1,498 (1,452) 45 91 326	52 (14) 1,460 1,498 434	1,498 (1,452) 45 91 326	52 (14) 1,460
				1,498
				434

Bank loans are secured on specific properties owned by the Hospice. The loan balance comprises £18k (2021: £49k) where interest is charged at 2.3% and the loan balance is repayable in monthly instalments by October 2022, £292k (2021: £369k) where interest is charged at base plus 1.35% and the loan balance is repayable in monthly instalments by April 2023, and £125k (2021: £137k) where interest is charged at base plus 1.35% and the loan balance is repayable in monthly instalments by January 2026.

Page 35

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

18 Funds

(a) Designated funds

a) Designated funds
Group Tangible fixed assets Building our future together Hospice at home pilot Major repairs Company Tangible fixed assets The Mill Building our future together Hospice at home pilot Major repairs	Balance at 1 April 2021 £’000 6,498 800 - 100 7,398 Balance at 1 April 2021 £’000 5,785 700 800 - 100 7,385	Income £’000 - - - - - Income £’000 - - - - - -	Expenditure £’000 (268) - - - (268) Expenditure £’000 (234) - - - - (234)	Transfers £’000 184 - 133 - 317 Transfers £’000 159 (21) - 133 - 271	Balance at 31 March 2022 £’000 6,414 800 133 100
					7,447
					Balance at 31 March 2022 £’000 5,710 679 800 133 100
					7,422

The fixed assets fund represents the amounts invested in fixed assets for charitable use. The major development of the Mill project is now complete, and the amount designated within the Hospice in respect of the Mill includes investment in fixed assets by the subsidiary company. For the charity as a whole, £100k has been set aside as part of the planned maintenance and development programme, £800k for the ‘Building our future together’ project to improve the in-patient unit, and £133k for the Hospice at home pilot.

(b) Restricted funds

b) Restricted funds
Group and Company NHSE Covid support Various Projects	Balance at 1 April 2021 £’000 - 38 38	Income £’000 259 36 295	Expenditure £’000 (259) (52) (311)	Transfers £’000 - - -	Balance at 31 March 2022 £’000 - 22
					22

The above restricted funds have been set aside for the appropriately stated project. Any funds spent on capital items are shown as a transfer to the designated tangible fixed assets fund.

The NHSE awarded funding to allow the hospice to make available bed capacity and community support from December 2021 to March 2022 to provide support to people with complex needs in the context of the COVID-19 situation.

Page 36

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

18 Funds (continued)

(c) General funds

Group General Funds: General Major repairs designated Building our future together designated Hospice at home pilot Assets capitalised in year Company General Funds: General Mill funds designated Major repairs designated Building our future together designated Hospice at home pilot Assets capitalised in year	Balance at 1 April 2021 £’000 6,409 (100) (800) - - 5,509 Balance at 1 April 2021 £’000 4,569 (700) (100) (800) - - 2,969	Income £’000 8,526 - - - 310 8,836 Income £’000 6,761 - - - - 285 7,046	Expenditure Gains/Losses & Transfers £’000 £’000 (6,639) 162 - - - - - (133) - (310) (6,639) (281) Expenditure Gains/Losses & Transfers £’000 £’000 (4,904) 116 - 21 - - - - - (133) - (285) (4,904) (281)	Balance at 31 March 2022 £’000 8,458 (100) (800) (133) -
				7,425
				Balance at 31 March 2022 £’000 6,542 (679) (100) (800) (133) -
				4,830

The general fund has been disclosed above to show amounts that have been designated from the fund and their movements, along with general income used to capitalise assets which has been transferred to the designated tangible fixed asset fund.

Page 37

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

19 Funds – Prior Year

(a) Designated funds

a) Designated funds
Group Tangible fixed assets Building our future together Major repairs Company Tangible fixed assets The Mill Building our future together Major repairs	Balance at 1 April 2020 £’000 6,678 - 100 6,778 Balance at 1 April 2020 £’000 5,983 666 - 100 6,749	Income £’000 - - - - Income £’000 - - - - -	Expenditure £’000 (360) - - (360) Expenditure £’000 (321) - - - (321)	Transfers £’000 180 800 - 980 Transfers £’000 123 34 800 - 957	Balance at 31 March 2021 £’000 6,498 800 100
					7,398
					Balance at 31 March 2021 £’000 5,785 700 800 100
					7,385

The fixed assets fund represents the amounts invested in fixed assets for charitable use. The major development of the Mill project is now complete, and the amount designated within the Hospice in respect of the Mill includes investment in fixed assets by the subsidiary company. For the charity as a whole, £100k has been set aside as part of the planned maintenance and development programme and £800k for the ‘Building our future together’ project to improve the in-patient unit.

(b) Restricted funds

b) Restricted funds
Group and Company Transform Project Refurbishment Project NHSE Covid support Other Revenue Projects	Balance at 1 April 2020 £’000 3 7 - 8 18	Income £’000 - - 925 67 992	Expenditure £’000 - (3) (925) (42) (970)	Transfers £’000 - - - (2) (2)	Balance at 31 March 2021 £’000 3 4 - 31
					38

The above restricted funds have been set aside for the appropriately stated project. Any funds spent on capital items are shown as a transfer to the designated tangible fixed assets fund.

The NHSE awarded funding to allow the hospice to make available bed capacity and community support from April 2020 to July 2020 to provide support to people with complex needs in the context of the Covid19 situation and to provide bed capacity and community support from November 2020 to March 2021 for the same purpose.

Page 38

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

19 Funds – Prior Year (continued)

(c) General funds

Group General Funds: General Major repairs designated Building our future together designated Assets capitalised in year Company General Funds: General Mill funds designated Major repairs designated Building our future together designated Assets capitalised in year	Balance at 1 April 2020 £’000 5,279 (100) - - 5,179 Balance at 1 April 2020 £’000 3,666 (666) (100) - - 2,900	Income £’000 6,458 - - 180 6,638 Income £’000 5,130 - - - 123 5,253	Expenditure Gains/Losses & Transfers £’000 £’000 (5,457) 129 - - - (800) - (180) (5,457) (851) Expenditure Gains/Losses & Transfers £’000 £’000 (4,238) 11 - (34) - - - (800) - (123) (4,238) (946)	Balance at 31 March 2021 £’000 6,409 (100) (800) -
				5,509
				Balance at 31 March 2021 £’000 4,569 (700) (100) (800) -
				2,969

Page 39

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

19 Funds – Prior Year (continued)

(d) Fund balances represented by:

Group Tangible fixed assets Investments Current assets Creditors falling due within one year Creditors falling due after one year Company Tangible fixed assets Investments Current assets Creditors falling due within one year Creditors falling due after one year	General Unrestricted Funds £’000 - 1,405 6,834 (2,296) (434) 5,509 General Unrestricted Funds £’000 - 342 5,136 (2,075) (434) 2,969	Designated Funds £’000 6,498 - 900 - - 7,398 Designated Funds £’000 5,785 - 1,600 - - 7,385	Restricted Funds £’000 - - 38 - - 38 Restricted Funds £’000 - - 38 - - 38	Balance at 31 March 2021 £’000 6,498 1,405 7,772 (2,296) (434)
				12,945
				Balance at 31 March 2021 £’000 5,785 342 6,774 (2,075) (434)
				10,392

20 Post balance sheet events

As in previous years, the Hospice was bequeathed a share in a number of death estates during the year. It is the Hospice policy to recognise the income once the amounts can be accurately quantified. All assets quantified have been included in the accounts.

At the year end there were a number of donations in wills still pending and due to the uncertainty of the amounts, the income will be recognised in the year in which the donations are either received or the amounts can be determined with reasonable certainty. The approximate value of such donations in wills to which the Hospice can put a value is £387k (2021: £1,523k).

21 Commitments under operating leases – land & buildings

At 31 March 2022, St Catherine’s Hospice Trading Ltd, a subsidiary undertaking, had future minimum lease payments under non-cancellable operating leases as set out below:

Amounts due within one year Amounts due between two and five years Amounts due after five years	2022 £’000 71 60 - 131	2021 £’000 90 34 -
		124

Page 40

2022-03-31-accounts

Company Registration No. 01602467 Charity No. 512186

St Catherine’s Hospice (Lancashire) Limited

A Company Limited by Guarantee

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

CONTENTS

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REFERENCE AND ADMINISTRATIVE INFORMATION

Patrons

Honorary Vice Presidents

President

Key Management Personnel:

Auditor

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES

Structure, Governance and Management

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Objectives and Activities for Public Benefit

Strategic Report

Background

Objectives and activities

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Services provided by St Catherine’s Hospice:

Main activities to deliver income include:

Strategic planning and performance monitoring

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Quality of Life To The End Of Life

Achieved through themes of: Patients & Families; Knowledge Exchange; Community & Income; Communications, Finance & Business

New activities

Service Development

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

Income Generation Activity

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Achievements and Performance for Public Benefit

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

Ethical fundraising

Financial Review

Reserves

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Investment policy

Internal financial control / Risk management

Plans for future periods

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Relationship with Subsidiaries

Employee involvement and policies

Fundraising standards and policies

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

REPORT OF THE TRUSTEES (continued)

Trustees’ responsibilities statement

Auditor

Mr J G Chesworth - Chairman

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS (continued)

Opinion on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

Respective responsibilities of the trustees

Auditor’s responsibilities for the audit of the financial statements

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS (continued)

Use of report

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

GROUP STATEMENT OF FINANCIAL ACTIVITES (INCLUDING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

COMPANY STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

GROUP BALANCE SHEET

AS AT 31 MARCH 2022

ST CATHERINE’S HOSPICE (LANCASHIRE) LIMITED

COMPANY BALANCE SHEET