Q Severn Hospice ere at Koffte Report and Accounts Year ended 31 March 2024 Severn Hospice Limited A Registered Charity No. 512394 A Company Limited by Guarantee No.1608025 Registered OfFice: Bicton Heath, Shrewsbury SY3 8HS Tel: 01743 236565 www.severnhos ice.0 Contents Page Trustees, Annual Report 1-15 Auditorfs Report 16-18 Consolidated Statement of Financial Activities 19 Consolidated and Charity Balance Sheet 20 Consolidated Cash Flow Statement 21 Notes to the Accounts 22-39 5evern H05pice Ltd Annual Report & Accounts 202>24 The Trustees (the Directors for Company Law purposes) submit their annual report and the audited financial statements for the year ended 31 March 2024. The annual report and financial statements of the charity have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Prattice for Charities (SORP 2015) (Second Edition, effective January 2019) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Oi Nec';"Dves and Ac':?vn'iFie Statement of Public Benefit The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. The mission statement of Severn Hospice sets out the activities which the charity undertakes for the public benefit. These services are provided free of charge to the residents of Shropshire, Telford & Wrekin, North Powys, Ceredigion and, when appropriate, to people living outside this catchment area e.g. when their families live locally. Mission Statement Our mission is to provide high standards of Specialist Palliative and End of Life Care through a range of Hospice Seniices 'here and at home,, that recognise the individual and their preferences. To achieve our mission, we will: > Care for patients and their families as individuals and strive to meet their unique needs. > Consider people's preferences in where they receive their treatment and care, whether this is in the home, as outpatients, with our day services or in our wards. > Provide high quality and timely information about conditions, treatment, and the range of services available. > Provide high quality, evidence-based clinical care through the range of hospice services. > Create care environments which meet regulatory requirements, are safe, welcoming, attractive and homely. > Provide care which neither hastens nor postpones death but which enables people to live as well as they can and to end their lives in peace and with dignity. > Support families through bereavement following loss of a loved one. > Nurture and support the skills, contribution and well-being of our staff and volunteers as our most valuable resource. > Provide all our services free of charge by raising sufPicient income from charitable and non-charitable sources. > Share knowledge and skills with other heafth care professionals at home and abroad, supporting good care wherever it takes place. Severn Hospi￿ tsmited Annual Report & Accounts 202>24 Objectives The general aims and objectives of the Hospice are to support and care for people living with a terminal illness within the catchment of Shropshire. Telford & Wrekin, North Powys and Ceredigion, in particular by: > Providing specialist palliative and end of life care through a range of inpatient and community services for people suffering from a terminal illness. > Condutting audits and promoting and encouraging research into the care and treatment of people suffering from a terminal illness and for the dissemination of the results of such research. Promotin& encouragin& and assisting in the teaching or training of doctors, nurses, physiotherapists and other professions. The charity aims to meet these objectives by achieving a seniice provision which: > Demonstrates a holistic, person-centred approach to the care of people with life-limiting illnesses adopting the principles stated in the accepted definitions of palliative care. > Offers a well-co-ordinated, multi-professional and 'seamless' service which integrates specialist palliative care services with primary, secondary, and tertiary health care services, voluntary agencies and Social services. > Offers a wide range of services that are both clinically and cost effective and are accessible to all residents in the area. > Provides support and training to all members of staff involved in the care of people with terminal illnesses. Activities Our Wards We provide 24 hour care for patients with complex palliative care needs within consultant led inpatient wards at both our Shrewsbury and Telford sites. We currently have 18 beds. Care is provided through a multi-disciplinary team which includes specialist doctors, nurses, a range of therapists, chaplains, and social workers. Our patient bedrooms have en-suite facilities to protect the privacy and dignity of patients and all rooms look out onto our tranquil gardens with dirett access to the grounds. Except in the case of infection control restrictions, families can visit whenever they want, and they can even bring their pets if they wish to. This 15 a small example that demonstrates the difference between a hospice and hospital setting for patients requiring palliative care. Severn Hospice Limited Annual Report & Accounts 2023-24 Day Services The Hospice prides itself in delivering day services in line with the concept of 'Living Well,. Within therapeutic environments, which includes the Community Services Centre, we offer specialist palliative care which includes access to consultant and specialist nursing advice, a range of therapies including palliative rehabilitation, group activities, counselling, and bereavernent support. Our teams work with patients to identify their specific needs and personal goals for living and support them to live as well as possible within the constraints of their illness. In addition, the day seniices team organise cornmunity coffee mornings at several locations across our catchment area with the aim to make Hospice care more accessible within familiar, relaxed and informal surroundings. Hospice at Home Four out of five patients referred to Severn Hospice are cared for in their own homes. Severn Hospice at Home is a responsive integrated service that comprises first contact; early intervention; access to specialist consultation clinics; specialist advice and clinical interventions; spells of nursing care through the day and night," consultant led virtual hospice beds. Working alongside other community health professionals the Hospice works to support patients who choose to be cared for and die at home. This developed service is designed to support the range of care needs as the patient condition changes. Family Support Service The Hospice farnily support seniice is delivered by a team of social workers and chaplains who support patients and their families in the community and our inpatient wards. A significant part of their work is the provision of a bereavement ser4ice for both adults and children. Voluntary Services The work of the Hospice is supported by a body of volunteers. Our volunteers support all areas of the Hospice including services, administration, income generation, shops, gardens, and with fundraising events. This support is estimated at an annual value in excess of £1 million but cannot be measured in purely monetary terms. Without volunteers the Hospice would struggle to provide the level of ser4ices that it does. Severn Hospi￿ Limr(ed Annual Report & Accounts 202>24 Strategic Report Achievements and Performance that we committed to do in 2023-24 How we performed To continue to develop our community services model with the addition of virtual beds, supporting patient's preference to be cared for at home and reducing demand on hospice and hospital beds. We have supported 168 patients within virtual hospice beds in the last year. Without this level of support these patients would have needed admission either to the Hospice or hospital. Our integrated Hospice at Horne model is now even rnore responsive and has improved the patient journey through our services. To make our money match our ambitions by maximising existing and exploring new income streams. During the year fresh ideas have been explored that aim to deliver new income streams. These include launching a new legacy campaign, installing an in-memory sculpture, creating a newsletter to celebrate 35 years of the Hospice. Expanding our Refresh cafe to cater for external events. A drive to increase ecommerce sales in our shop network. Implementation of phase l of the CIP has been a success. Annual cost savings in excess of £500k will be delivered by the end of a 2-year period. These are recurring savings and have allowed the Hospice to manage periods of high wage inflation and meet the challenges of staff retention and recruitment during difficult economic conditions and without impacting services. A reduction of 2 beds at Bicton was tested for one year during which time we continued to meet dernand and maintain waiting times. This has resulted in a saving of £194K as part of our cost improvement plan. The appointment of a community engagement lead nurse has allowed us to reach out into our communities and has given us a better understanding of its diversities. This information has already informed practice and policies. To implement phase l of a cost improvement plan ICIP) taking opportunities to innovate and work differently. Following an analysis of inpatient activity, test a small reduction in beds at our Bicton site through a one-year proof-of-concept initiative and any effett on our ability to meet demand. To improve access to Hospice care by seldom heard groups by better understanding the diversity and needs of our community. Sevem Hospi￿ ￿Mited Annual Report & Accounts 2023-24 Activity for 2023-24 Severn Hospice provides palliative and end of life care for a combined population of around 713,000 in Shropshire, Telford & Wrekin, North Powys and Ceredigion. Population profiles demonstrate the mix of urban and rural communities in our patch. This puts a greater emphasis on the need to be flexible in our approach and in our provision of services. Our service strategy is designed to reflect the diversity of the communities it serves, to improve access to Hospice care and to support our NHS partners through the delivery of specialist palliative and end of life care both within our wards and within the community. We aim to meet demand for specialist palliative and end of life care and support patient preferences and personal goals. During the year we received 2,814 new patient referrals which translated into 8,347 referrals across our services. General access to GPS and hospital care continues to be impacted by the after-effects of the pandemic and ways of working which has led to continued delays in diagnosis and referral to treatment. As a result, referral for Hospice care is also delayed meaning that some patients are more advanced in their disease, and they are dying more quickly. The demand for home care continues to increase post pandemic but has now plateaued. The development of a strong community now rneans that 4 out of 5 patients referred for Hospice care are cared for in their own homes. The launch of Virtual Hospice and the integration of our community services has increased our ability to support more patients with greater cornplexities at home. This increased comrnunity artivity is now refletted in a reduced demand for inpatient care. Our Priorities for 2024-25 To continue to make our money match our ambitions by maximising existing and exploring new income streams. To identify options to reduce costs that have minimal irnpact on service delivery. To work with the ICB to secure the hospice grant and annual inflationary uplifts. To better understand the needs and diversity of our cornmunities so that we can improve access for seldom heard groups. To better evidence established effective systems and processes for responding to safety incidents in line with CQC lines of enquiry. To continue to develop an integrated community seniices model that is responsive and supports a range of care needs. To establish and maintain relationships and partnerships that maximise our influence. Severn Hospi¢e Limited Annual Report & Accounts 202>24 shops were opened in the financial year boosting trading income. Net attrition continues to erode our lottery membership and strategies to increase recruitment are in place. In total, trading income increased by £258K. Annual Activity The charity finished the year in a break-even position before investment gain511osses. The final quarter of the financial year saw significant increases in stock markets and at 31st March 2024, net investment gains of £471K lead to an overall surplus for the financial year of £471K. Retailsales remain strong. Since 22-23 income has increased by £234K year on year with the opening of the Bicton Heath and Market rtd Drayton shops (the 32 shop). income has been at the highest level ever. Income Regarding Hospice Projerts Limited, core sales come from Christmas cards and Refresh café sales. The café is now strongly established with sales increasing and a new "Refresh on the Road" initiative being introduced in 23-24. Total group income, before investment gains/losses, for the year ended 31 March 2024 was £14,712K an increase of £616K on the previous year. The principal funding sources for the charity were: The Hospice Lottery continues to provide a predictable income source, with a net contribution of £832K. Current strategy is to continue using a canvassing company for recruitment of players, however the recruitment of canvassers in the area is at tirnes proving difficult. > donations and legacies £3,863K charitable activities £4,040K other trading activities £6,281K investments £450K other income £78K Donations ond legacy income increased by £75K in 23/24. Legacy income fluctuates from year to year depending on number of legacies. probate dates and notifications from solicitors. A legacy strategy is in place to try to influence this unpredictable source of income which the charity is very much reliant upon. Budgetary assumptions for legaq income are approved by the Finance Committee and the Reserves policy has also been developed to mitigate any short-term risk from any downward trend. Fundraising events have always been a very visible and important income source. The London Marathon, Lights of Love, Annual Memorial Service and Dragon Boats are all major contributors. Details of the top events in the year are given at note Sd. Investment income, attributable to funds held as cash, has benefitted from the increase in interest rates. Unfortunately, an investment loss of £IOK has also been recognised on a property owned by the Hospice which is now up for sale. However, on the positive side, stock markets rose by the end of the financial year resulting in a net investment gain from the share portfolio of £481K, clawing back some of the sizeable loss made in the previous year. The charity continues to hold a mixed portfolio of high-quality investments, with the investment strategy reviewed regularly by the Finance Committee. Charitoble activities comprise the income received from NHS Clinical Commissioning Groups {CCGs). health care bodies and other governmental organisation5. This income is received towards the treatment and care of people diagnosed with a terminal illnes5, together with income towards the education and training of the professionals delivering the treatment and care. Other trading octivities comprise income generated through the shop network, lottery operation and fundraisin8 events. Two new 6 Severn Hospi￿ Ltd Annual Report & Accounts 2023-24 Expenditure 25%. Further breakdowns of costs are given in note 9 of the accounts. Total group costs for the year ended 31 March 2024 were £14,712K, an increase of £898K on the previous year. Inflationary cost pressures were experienced in respect of both supplier prices and the need to maintain competitive 5a laries. Surplus/Deficit The Hospice finished the year in a breakeven position excluding investment gains. The overall surplus fortheyearof £471K was stated after recognising the effect of £471K of net investment gains. Costs associated with charitable activities increased by £446K. Hospital Service5 are no longer funded by the Hospice. Funds and Reserves Policy Costs associated with raising funds through fund raising and trad ing activities increased by £452K; £265K relates to shops reflecting wage increases and the costs of additional shops. Hospice Projects costs increased by £20K mostly attributable to the Refresh cafe. Lottery costs were lower by £59K reflecting decreased activity by the canvassing company which is currently experiencing recruitment difficulties. The total funds of the Group at 31 March 2024 are split between: Restricted funds £317K Designated Funds £14.548K General Funds £12,788K Restricted Funds During 2023-24, donations and funding totalling £1,205K was received to enable specific expenditure to be undertaken. At the end of the financial year, £317K remained unspent. As a large proportion of fundraising costs are fixed, a significant swing in income, especially when attributable to legacies, can cause a significant impact on the fundraising cost ratio. This financial year it has increased to 16 pence in the pound {2022-23 at 13p/pound), because the Hospice has invested in the fundraising team to drive the need for increased income to meet the organisations higher operating cost5. The ratio excludes costs attributed to Retail, Severn Promotions Company Limited and Hospice Projects Limited. This approach is consistent with reporting within the sector, enabling fair comparisons to be made. Designated Funds The Trustees have established four designated funds which are explained as follows". Fixed Assets Fund The Fixed Assets Fund represents the book value of the charivs tangible fixed assets money already spent but to be charged through the Statement of Financial Activities in future years. On 31 March 2024 this fund stood at £12.548K. Although these funds are unrestricted, they cannot be reali5ed for other use without undermining the charivs work. To fulfil its charitable objectives, the organisation needs several properties, fixtures and fittings, other contents of the properties and motor vehicles. Support costs, apportioned within the total expenditure costs, total £3,749K and include the costs of running and maintaining the Hospice buildings, vehicles and gardens; catering costs; costs of central governance and administrative functions including HR and Communications. Finance and IT support functions. These have increased by £457K, driven by some increased resourcing in central functions and increased annual increments. Overall support costs have increased slightly as a proportion of total group expenditure at Capital Projects Fund This fund represents funds set aside for capital works. On Board approval, the balances on the Energy Sustainability Fund and SeNice Development Fund were transferred into this fund in 22-23. The Board approved that this Severn Hospice Limited Annual Report & Accovnts 2023-24 fund stands at £2M at the end of the financial year. presentations to the Finance Committee. The Trustees regularly monitor the ethical instruction of the charity investments and, as a result of this. tobacco companies are specifically excluded from the portfolio. No highly speculative investments, investments in derivatives markets, hedging or forward investments are included in the portfolios. General Fund The Trustees considerthat in order to fulfil the charitys obligations to the communities it serves, to existing and future patients and their families and to the paid staff, it is a desirable objective for there to be reseNes available at any time between 75% and 125% of the following yearfs estimated group running costs. Sufficient funds are held in cash to cover our immediate working capital requirements and any other short to medium term committed expenditure. The remainder is invested in accordance with the Investment policy. The practice of holding portfolios of investments with different and diversifying performance characteristics leaves the portfolio less exposed to movements in any particular asset c5ass- No major change in strate8y is contemplated 500n. Risk Management- Principal Risks and Uncertainties On 31 March 2024, the group's general reserves were £12,788K representin8 approximately 10.5 months or 88% of the following yearfs estimated 8roup running costs. This is within policy range. Even though income has recovered well post Covid- lockdowns, there is still uncertainty in respect of the economic inflationary cost pressures lincluding wage inflation), potential new governments around the world, the Russian war with Ukraine, peoples changing behaviour and government fiscal and monetary policy. Negative consequences will have an inevitable impact on reserves. The Trustees accordingly remain vigilant but confident that the Hospice will continue as a going concern for the foreseeable future. The Trustees have a formal risk management process to assess the major risks to which the charity is exposed. This involves identifying the types of risks, prioritising them in terms of potential impact and likelihood of occurrence, and reviewing the systems established to miti8ate the risks. The major risks, as identified by the Trustees, have been reviewed in accordance with this process and are identified as follows: Economic and global challenges continue to impact the Hospice. High wage inflation is causing running costs to increase significantly. Underlying deficits are expected in an average or below average income year. Our focus is on developing new income streams and continuing to reduce costs where possible. Mitigation: Maintaining sufficient reserves will help to support income shortfalSs and cost pressures in the medium term. A phased cost reduction plan has been implemented. Phase one of the plan presented opportunities to restructure services and work differently without reducing levels of service. This is delivering savings of more than £500K over a two- year period. Solar panels are also being considered as a means to reduce utility Costs long term. In addition, the investment in our income generation Investment Policy The charivs main investment portfolio is professionally managed by external fund managers with the objective of balancing capital growth and income within risk profiles defined by the Trustees and operational requirements. The investrnent portFolios consist of a mixture of equities, bonds and property assets. Individual investments within each category of the portfolio will vary according to market conditions and the portfolios are actively managed with quarterly reporting and annual 8 Sevem Hospice Ltd Annual Report &A£counts 20￿24 resource will support new activities and income streams. Regular quarterly income and c05t forecasting will track and monitor income and expenditure and enable informed decisions. The charity receives income from local NHS organisations in England, and from NHS Health Boards in Wale5. Overall, this contribution amounts to approximately one-third of the charivs income. Such income is not being increased in line with inflation due to pressure on the NHS finances. Mitigation: relationship management with key influencers, a clear communications strategy to express the charity's position. Failure to meet staff numbers due to national shortage of nurses and the need to offer competitive salaries. Mitigation: a continuous review of skill mix, together with periodic recruitment fairs and the consideration of national advertising. Referring to appropriate pay benchmarks and implementing competitive pay awards within agreed financial constraints. Reputational damage arising from data protection breaches. Mitigation: regular staff training regarding best practice when dealing with information and working online. IT infrastructure improvements and implementing the latest security enhancements is ongoing. -01.41?rrLance n& F,Aar,i,¢yarment The roles, responsibilities and accountability of the Chair, Trustees and the senior managers are defined in a Scheme of Corporate Governance. The Board of Trustees is the custodian of the aims and objects of the charity as set out in the Articles of Association. It is responsible for guiding and shaping policies by which these aims and objects are achieved, and of establishing the philosophy of care, which is at the heart of the work of the Hospice. The Trustees are responsible for taking decisions on the strategic direction of the charity, approving major developments and monitorin8 the work of its committees, advisory groups, the managers and its subsidiary companies. In addition to the boards of the subsidiary companies, Hospice Projects Ltd and Severn Promotions Company Ltd, there are six formally constituted committees: > Finance > Retail > Clinical Governance > Corporate Governance & Human Resources Fundraisin8 Nominations, Trustee Development & Remuneration and two formally constituted sub-committees: > Property & Estates Strategy Group > Health and Safety Committee Each committee is chaired by a Trustee and has its major decisions ratified by the full Board. The Finance Committee also acts as an audit committee. All committees operate under specific terms of reference which delegate certain functions from the Board. There is a clear delegated authority framework in place which defines how decisions are ratified by Sevem Hospiee ￿mited Annual Report & A￿o￿nts 2023-24 Board, committees and management. Various management working groups such as Clinical Audit report into the appropriate fonnal sub- committees. > Considers any proposals or changes that require formal approval in line with delegated authorities. There were 10 formal fundraising complaints during 2023/24, 8 relating to the retail operation and 2 relating to lottery. 5 were upheld, 5 not upheld or no further action required. Of the 5 upheld complaints, all related to staff and volunteer conduct and each were investigated and dealt with on an individual basis, one member of staff was stood down and the other instances revealed training needs that have been addressed. The charity subscribes to the Fundraising Regulator and will receive and act on notifications regarding the Fundraising Preference Service. The Fundraising Committee ensures compliance with Charity Commission guidelines and the Fundraising Regulators Code of Practice (CC20). including a comprehenstve risk management framework about income generation. The Charity has always recognised the importance of maintaining a high level of public trust through responsible fundraising and has attively recruited suitable expert representation at all levels. It benefits from having a Trustee Board member with seniorfundraising experience. The charity has not engaged any professional fundraising or external fundraising agents in the year, although Severn Promotions Limited uses the services of a canvassing company for recruiting lottery rnernbers. The Fundraising Committee has principal responsibilities to: The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include: > Assure a range of fundraising activity that is appropriate, has due regard for the reputation of the Hospice, meets voluntary income needs and includes donations, legacies, in memoriam, events, collections, corporate donations and website promotion. Ensure that the Executive is performing efficiently, in accordance with legal and other relevant requirements. > Agree the fundraising strategy. A strategic plan and an annual budget approved by the Trustees. > Regular consideration by the Trustees of financial results, variance from budgets, non-financial performance indicators and internal audit. Trustees are appointed to provide specific skills required by the Board as determined by Trustee annual reviews and the Nominations, Trustee Development & Remuneration Committee. Applications are considered by the Nominations, Trustee Development Remuneration Committee who undertake formal interviews of sultable candidates and carry out background checks. Formal induction is then arranged for successful candidates in conjunttion with the Chair, Chief Executive and members of the senior management team. Trustees are required to undertake certain aspects of mandatory training and encouraged to attend other ongoing training. This includes safeguardin& data protection and diversity training. In order to fulfil these responsibilities, the Fundraising Committee: Ensures that appropriate policies and processes are in place, and that reporting on these and any changes or developments are in place. > Maintains a strategic approach in the development of existing and new income streams and monitors actions to achieve these. > Receives performance information on finance, activity and efficiency. ID s￿rn Hospi￿ Ltd Anftual Report & Accounts 2023-24 Strategic plans and operating budgets are considered and approved by the Board of Trustees. These set the context and limits on management decision making at the operational level. The Board and its committees review compliance and performance in respect of these plans and budgets on a programmed basis. The charity is committed to the principle of equal opportunities of employment and recognises its obligations under the Equality Act 2010. The charity declares its opposition to anyform of less favourable treatment whether through direct or indirect, associated or perceived discrimination accorded to charity staff or job applicants on the grounds of their race/nationality or ethnic origin, disability, sex, age, sexual orientation or gender reassignment, marital and civil partnership status, pregnancy and maternity, religion or belief {otherwise known as protected characteristics as defined by the Equality Act 2010), including human rights. The charity is committed to creating a positive culture of respect for all its staff and to promote positive practice and to value the diversity of all individuals and communities. It embraces and recognises the importance of diversity, and that different people bring different perspectives, ideas, knowledge and culture. Pay and remuneration of the senior management team is reviewed by the Nominations, Trustee Development Remuneration Committee, formal committee of the Board, after considering benchmark information based on data for medium sized midland based organisations and the NHS Agenda for Change pay scale as appropriate. Pay recommendations are put to the Board for approval. Stakeholders and Em lo ees The Trustees set out to define discrete stakeholdergroups and recognise that in many cases they have complementary interests and shared priorities. Stakeholders identified include patients receiving palliative care, their families, donors, staff. volunteers, the Integrated Commissioning Board. local communities, contractors and suppliers. Continued attention is paid to the health and safety of employees while at work. Employee views are sought at team meetings, staff forums, and through staff surveys, There is a strategy in place for regular and effective communication with these stakeholders about the charity's purposes, values, work and achievements. Examples of this includes communication methods such as the Yearbook and information leaflets. Membershi To assist in its decision making and ensure current and best practice is always followed, the charity is an active participant in the membership several not-for-profit organisations. These include: The Trustees communicate how the charity is governed and who they are through thesevern Hospice website and the Trustee Annual Report. The Trustees ensure that stakeholders have an opportunity to hold the Board to account through agreed processes and routes such as patient feedback questionnaires. complaints procedures and employee satisfaction suNeys. Hospice UK Health and Care Professions Council ICS End of Life Clinical Group Institute of Fundraising Charity Retail Association Hospice Lottery Association Gambling Commission Charity Finance Group The Trustees also make sure that there is suitable consultation with stakeholders about significant changes to the charivs services or policies. Staff forums are an example of this. Severn Hospi￿ Limtted Annual Report & Accouft￿ 202>24 li Ene Under the Streamlined Energy and Carbon Reporting (SECR) 2018 Regulations the charity is required to report their environmental impact. The Euidelines of SECR allow us to choose boundaries, metrics, and targets when reporting and we have therefore chosen to use ESOS data to assess last yearfs emissions against the current financial year using UK Government GHG Conversion Factors for Company Reporting 2023. The charity is required to submit Energy Saving Opportunities Reports under the Environment Agency ESOS scheme which takes place every three years. The charity engages an independent firm of consultants to undertake the work and to demonstrate compliance. In September 2021 Phase 2 compliance was submitted and we have recently undertaken our Phase 3 compliance which covered the period 2022. 2022 Year to Dec 2023 The table below summarises this period and our annual consumption of gas, electricity and transport to 31" December 2023, to allow for for comparability. The results show a small reduction in gas and electricity and significant reduction in transport as a result of disbanding the transport department. LED lights have now also been fully installed across all Hospice sites and retail shops. In terms of total carbon dioxide emissions for the charity the year to December 2023 emissions are down 13Yo on 2022 Emissions from Combustion of Gas in tC02e (Scope l) Emissions from Purchased Electricity in tC02e (Scope 21 Emissions from Combustion of Transport Fuel in tC02e {Scope 3) Total gross Scope 1, 2 & 3 emission51 tC02e Energy consumption used to calculate above emissions kwh Charity Spend £ Intensity ratio: £k per tC02e (Scope 1,2&3} 327 298 175 173 93 32 595 503 3,384,000 2,485,000 Energy To Dec 2022 ESOS Phase I To Dec 2023 Change Note 9,568,000 16 10,632,000 21 Gas Mwh 1616 1492 Milder winter Bicton Ene Efficien Artion Electricity Mwh 906 864 In the period covered by the report the Hospice has improved lightin& heating and hot water building services which is expected to result in energy consumption savings of around 15% over 3 years to 2025. building loo% electric Transport Mwh 862 129 -85% Transport dept closed Tonnes C02 580 503 -13% 12 Severts Hospice Ltd Annual Report & Accounts 202>14 Statement of Trusteed Responsibilities aware of any relevant audit information and to establish that the auditor is aware of that information. The Trustees are responsible for preparing the Trustees, annual report and the financial statements in accordan￿ with applicable law and United Kingdom Accounting Standards (United Kingdom Generally AC￿pted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the net movement in funds, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to: > Select suitable accounting policies and then apply them consistently; > Observe the methods and principles in the Charities SORP; > Make judgements and estimates that are reasonable and prudent; > State whether applicable UK Accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and > Prepare the financial statements on the going concern basis unless is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitsble compan￿5 website. Director< Interests As the company is limited by guarantee. the Directors do not hold any shares, A register of all Directors, interests is kept at the Hospice's headquarters and declarations of general or related interests are made before commencing each formal meeting of the DireC(ors. .4ci'f,79n2PStry>tive eiail¢ Name & Address The full name of the charity is Severn Hospice Limited. It is a company limited by guarantee, No. 01608025. It is registered with the Charity Commission of England & Wales, No. 512394. The address of the registered office is Bicton Heath, Shrewsbury, SY3 8HS. Governing Document This is the Articles of Association adopted by Special Resolution on 26 September 2013 and altered by Special Resolutions on 29 September 2016, 10 December 2020, 30 September 20213nd 29 September 2022. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of 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 the group and hence for taking reasonable step5 for the prevention and detection of fraud and other irregularities. In so far as we are aware". Group Accounts The group accounts within these financial statements include the re5uIt5 of Severn Hospice Limited, the Charity. and the results of its wholly owned subsidiary companies. Severn Promotions Company Limited which operates a fund-raising lottery and Hospice Projects Limited which trades in new goods and undertakes other commercial activities. Both companies donate their profits to the Charity. > There is no relevant audit inforniation 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 Severn Hosplce timlted Annual Report & A(£ounts 2023-24 13 President Sir Algernon Heber-percy Ice Presidents Miss S Astbury Mr M Davis Dr D Griffiths Mr5 J Jenkinson Mrs H McPhail Mrj Tancock Board of Trustees The current Trustees, and those who held office during the financial year to 31 March 2024 and subsequently, are listed below, together with their committee membership {see key}. Bankers Santander. Bridle Road, Bootle, Merseyside, L30 4G8 Mr N Bathurst (appointed 7.9,231 Mrs J Beard Iresi8ned 28.9.231 Mr S Bleakley Ms J Casey (appointed 13.11.231 Mr A Clarkson Mr P Coacklev Mrs N Crosby lappointed 28.9.231 Mr P Donohue Iresigned 28.9.231 Ms K Downton (appointed 7.9.231 Qr A Fraser Mr P Gold Mrs A Johnson (resigned 19.5.231 Dr D Northern lappointed 25.5.231 Mr D Robinson (appointed 13.11.23) Dr D Ryan Iresi8ned 28.9.231 Prof. D fowse Mrj Wardle Mrs J whitford (Chairl 11.6) 13,4.61 18. 51 181191 13,61 11,4.5) 131 11,61 14,51 12.4.51 11.6) National Westminster Bank PLC, 8 Mardol Head, Shrewsbury. Solicitors Lanyon Bowdler LLP, Chapter House North, Abbey Lawn, Abbey Foregate, Shrewsbury, SY2 50E. Bates Wells LLP 10 Queen Street Place London, EC4R IBE 121 121 12.4} 12,7) 11.3.71 11,4,51 Investment Managers Evelyn Partners Investment Management LLP, 103 Colmore Row, Birmin8ham, B3 3AG. Brewin Dolphin Limited, Mutual House, Sitka Drive, Shrewsbury Business Park, Shrewsbury SY2 6LG. rnrni 111 Finance: 121 ainical Governance; 131 RetaÉl,. 141 Nomlnations. Trustee Development & Remuneration: 151 Corporate Governance & Human Resources;161 Fundraisin&171 Property & Eststes SV￿cOmmIttee. 181 Health & Safety Sul>Committee; 191 Communications SU￿CommIttee Auditors Haysmacintyre LLP, 10 Queen Street Place, London, EC4R IAG. Senior Management Team (Key Management Personnel) Membership of the Company A Member may be an individual or a body corporate. Applications for Membership are determined by the Board of Directors. Chief Executive Mrs H Tudor Director of Care Mr5 R Richardson Appointment of Trustee5 The Board of Trustees shall consist of not less than three or more than 20 Members of the company. It may appoint any Member of the omp3ny as a Trustee either to fill a casual vacancy or by way of addition to the Board of Trustees, provided that the prescribed maximum be not thereby exceeded. Any member so appointed shall retain office onlv until the next Annual General Meeting but he or she shall then be eligible for re-election in accordance with the Governing Document. In Dirertor of Finance & Information & Estates Miss K Davies Dirertor of Income Generation Miss T Harrison Medical Director Professor D Willis 14 Severn Hospi￿ Ltd Annual Report & Accounts 202>24 line with best practice, all trustees will senie a maximum of nine years in office. The Board hold five formal Board meetings each year plus an Annual General Meeting to which Hospice members are also invited. Severn Hospice seeks to ensure that an appropriate range of professional skills are maintained at Board level to fulfil both the governance and business requirements of the Hospice. NewTrustees are appointed following regular analysis of skill requirements and sympathy to the charitVs principles undertaken by the Nominations, Trustee Development & Remuneration Committee, a formal committee of the Board. Prospective Trustees may apply to the Hospice or may be identified by the Board. and they are interviewed by the Nominations, Trustee Development & Remuneration Committee which then makes its recommendations to the Board. New Trustees are prepared for their role through supply of key documents and through a formal process of induction during which they meet key staff and sit as observers at meetings at the Hospice. Ongoing training is provided on an ad hoc basis through external and in-house training programmes. Reappointment of Auditor A proposal to re-appoint Haysmacintyre LLP as auditor for the forthcoming year will be put forward at the Annual General Meeting. In approving this Trustees Annual Report, the Trustees are also approving the Strategic Report included here in their capacity as Company Directors. This report was approved by the Board of Trustees on l August 2024 and signed on its behalf by: Jeanette Whitford Chair Severn Hospice Limtted Annual Report & Attounts 2023-24 15 INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS AND TRUSTEES OF SEVERN HOSPICE LIMITED Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as going concern for a period of at least twelve months from when the financial statements are authorised for issue. Opinion We have audited the financial Statements of Severn Hospice Limited for the year ended 31 March 2024 which comprise the Consolidated Statement of Fina ncial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Finonciol Reporting Standard opplicoble in the UK ond Republic of Ireland {United Kingdom Generally Accepted Accounting Practice). Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the Trustees, Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In our opinion, the financial statements: > give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31" March 2024 and of the group's and parent charitable company's net movement in funds, including the income and expenditure, forthe 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. In connertion with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI (ISAS IUK}I and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities forthe audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other eth ical 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. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, Annual Report (which includes the strategic report and the direttors, report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements- and the strategic report and the directors, report included within the Trustees, Annual Report have been prepared in accordance with applicable legal requirements. 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. 16 Severn Hospi￿ Ltd Annual Report & Accounts 2023-24 Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Annual Report (which incorporates the strategic report and the directors, report). 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, individ ually or in the aggregate, they could reasonably be expected to influerice the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non- compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularitie5, including fraud is detailed below: We have nothing to report in respect of the following matters in relation to which the Companies Act 2CQ6 require us to report to you if, in our opinion: adequate accounting record5 have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or the parent charitable company financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with regulatory requirements of the Care Quality Commission, Charity Commission, employment law and health and safety re8ulation5, and we considered the extent to which non-compliance rnight have a material effect on the financial statements. We also considered those laws and regulations that have a direct impatt on the preparation of the financial statements such the Companies Act 2006, the Charities Act 2011, payroll taxe5 and VAT. Responsibilities of trustee5 for the financial statements As explained more fully in the trustees, responsibilities statement set out on page 13, 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. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements {including the risk of override of controls} and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audit procedures performed by the engagement team included: In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Inspecting trustees, meetin8 minutes Inspecting correspondence with regulators and tax authorities; Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud: Evaluating management's controls designed to prevent and detect irregularities. Identifying and testing journals. and Challenging assumptions and judgements made by management in their critical accounting estimates. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material rnisstatement in the financial statements or non-compliance with regulation. This risk increases the more that 17 Auditorfs responsibilities for the audit of the financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whetherdue to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit Sevem Hospice Ltd Annual Report & Attounts 2023-24 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 Fina ncial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditorfs report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for ouraudit work, for this report, or for the opinions we have formed. Lee Stokes {Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP Statutory Auditors 10 Queen Street Place London EC4R IAG Iq qolltr 18 Severn Hospice Ltd Annual Report & Accounts 2023-24 CONSOLIDATED STATEMENT OF FINANCIAL AcnviTIES (Incorporating an Income & Expenditure Account) For the Year Ended 31 March 2024 Unrestricted Funds 2024 £000 Restrirted Funds 2024 Total Funds Total Funds 2024 £000 2023 £000 Income From: Note Donations and legacies: Donations Legacies Grants from Charitsble Trusts 1.279 1,847 86 3,212 125 430 133 1.404 2,277 219 3900 1.494 2,170 124 3,788 Charitsble Activities 3,$23 517 3.885 other trading activities: Lottery Projects Shops Fundraising events 5a 5b sc sd 1192 440 4.345 267 6.244 1192 440 4,345 267 6.244 1,190 420 4,111 302 6,023 Investments Other 450 78 450 78 305 95 Total Income 13,507 1.205 14,712 14,096 Expenditure on". Raising Donations, Legacies and Grants I￿16 1,016 812 Other tradlng activities: Lottery Projects shops Fundraising events Investment management ¢ost5 Cog(s of raising funds Sa,9 5b,9 5c.9 5d.9 405 360 2,796 62 59 4.698 405 360 2,796 62 59 4.698 464 340 2.531 52 47 4.246 In patienr ca Oay care Hosplce at home Education and research Hospital services Lymphoedema Social Work & Chaplaincy Expenditure on ch?ritable activities 4,694 1,456 2,208 191 537 19 289 141 5,231 1,475 2,497 332 4.883 1.421 2,426 341 143 336 9.028 143 336 10.014 134 339 9,568 986 Total expenditure 13.726 986 14.712 13.814 Net incometorthe year and net rnovements in fund5 before Ilosses1/ gains on investment5 Net gains/ Ilossesl on investments 12191 219 282 471 471 16851 Net surplu5/ Ideficitl for the year Transfers beNeen ftjnds 252 219 471 {403} 15. 16 65 {651 Net movement in funds Reconciliation offunds.. Totsl funds brought forward Total funds carried fonmard 317 154 471 {403} 27,019 27336 163 27,182 27.653 27,585 27.182 317 5evern Hospice Ltd Annual Report & Accounts 202¥24 19 CONSOLIDATED AND CHARifi BALANCE SHEEr As at 31 March 2024 Group Charity Note 2024 2023 2024 2023 £000 £000 Fixed Assets Tangible assets io 12,548 12,199 12,548 12,199 5nvestments li 8,380 7.976 8,430 8,026 20928 20.175 20,978 20,22S Current Assets Stock 12 18 li Debtors 13 1,877 2,048 2,073 2,227 Investment property for sale Cash at bank & in hand 230 230 5,751 6,077 5,297 5,626 7,876 8,136 7,600 7.853 Credltors: amounts falling due within one year Net Current assets 14 11.1511 11,1291 19421 19131 6,7Z5 7,007 6,6S8 Total assets less current liabilitiesl Net assets 27,636 27,165 27,653 27,182 The funds of the charity: Restricted f unds 15 317 163 317 163 Unrestricted funds: Designated funds 16 14.548 15,042 14.548 15,042 General fund5 16 12.788 11.977 12.771 11,960 Total funds 27.653 27.182 27,636 27,165 The net result of the charitws own accounts for 2023/24 was a surplus of £471K (2022/23: deficit of £403KI. These accounts were approved and authorised for issue by the Board of Trustees on l August 2024. Jeanette Whitford Chair Severn Hospice Limited Registered No. 1608025 20 Severn Hospicè Ltd Annual Report & Accounts 2023-24 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2024 Note 2024 2023 £￿0 Éooo sh flows from operating artivities: Net cash provided by operating actlvities 23 355 1391 Cash flows from investing activities: Dividends and interest from Investments Purchase of property, plant and equipment Proceeds from sale of investments Purchase of investments Decrease/lincreasel in investment cash 450 19681 1.104 11,3541 87 305 16211 1,122 11,4341 146 Net cash used in investing artivities 1681) 14821 Change in Cash and cash equivalents in the repor(ing period 13261 (521} Cash and cash equivalents at the beglnning of the reporting period 6,077 6.598 Cash and cash equivalents ar the end of the reporting period 5.751 6,077 Sevem Hospice Ltd Annual Report & Accounts 2023-24 21 Notes to the Accounts Year ended 31 March 2024 presented for the charity alone as permitted by the Companies Act 2006 and the Statement of Recommended Practice for Charities. l. Accounting Policies The principal accounting policies adopted, judgements and key sources of estimation or uncertainty in the preparation of the financial statements are as follows: Id) Estimation Uncertain and Jud ements In the application of the accounting policies, Trustees are required to make judgement, estimates and assumptions about the carrying value of assets and liabilities that are not read ily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. lal Basis of Accountin The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice for Charities ISORP 2015) {Second Edition, effective January 2019) and the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The most significant area of judgement and key assumptions that affects items in the accounts is the estimation of income from legacies. The estimated value of each outstandin8 legacy at 31 March is calculated in accordance with the principles set out in the Income section below, Another significant area of assumption is in respect of depreciation of fixed assets. The rates of write down are Shown in the Tan8ible Fixed Assets note below. The Trustees are satisfied that these write down rates are a reasonable reflection of the expected useful life of the assets in each class. The Hospice meets the definition of a public benefit entity under FRS 102. The financial statements are prepared under the historical cost convention with the exception of fixed asset investments, which are included at marketvalue. Ib} Goin Concern The Trustees consider that there are no material uncertaintie5 about the Hospice's ability to continue as a going concern. The most significant area of uncertainty is the level of income which needsto be raised every year and is covered in more detail in the performance and risk sections of the Trustees, report. Since Covid, UK and global factors have emerged that can directly and indirectly impact the Hospice such as changes to fiscal and monetary policy, the Ukraine war, government electionsand high inflation. However, the review of the Hospice's financial position, reserves levels and future plans gives Trustees confidence that it remains a going concern for the foreseeable future. (e) Income The Hospice recognises income when all the following criteria are met it has entitlement to the funds and any conditions attached to the items of income have been met; it is probable that the income will be received; and an economic benefit can be reasonably Measured. This is applied as follows to these streams of income: Donations are included in income when they are received. Both pecuniary and residuary Legocies are recognised at the earlierof the date the H05pice is informed that probate has been granted or the date we are advised, in writin& by the representative of the estate that payment will be made, or assets transferred, and when, in the opinion of management, the amount can be quantified with reasonable accuracy e.g., using draft estate accounts, and will probably be received. The hospice operates a cut-off window being a practical mechanism to alSow for preparation of the accounts. Should a Severn Hospice Ltd Annual Repon & Accounts 2023-24 {c) Basis of Consolidation The statement of financial attivities ("the SOFA") and balance sheet consolidate the financial statements of the charitable company and its subsidiary companies, Hospice Projects Limited and Severn Promotions Limited, forthe financial year ended 31 March 2024. The results of the subsidiary companies are consolidated on a linfrby-line basis. No separate Statement of Financial Activities is 22 notification be received before the yearend but is not quantifiable within six week5 of the year end then, when measurable and receipt is probable, it will be recognised in subsequent accounting periods. The exception to the six- week window is if the amount is material, then in this case, if the recognition criteria are met before the accounts are signed then it will be recognised within the current accounting period. Where a notification is received within the six-week window and is dated before the year end and is measurable and receipt probable, then this will also be recognised within the current accounting period. but are not part of the direct costs of the expenditure categories in the SOFA. These relate to governance, premises, catering. central administration, finance, IT and HR and Vehicles. eratin Leases Rental costs under operating leases are charged to the SOFA over the period of the lease. A review of new lease5 entered this year was undertaken and an adjustment has been made for lease incentivesto be accounted forover the fvll term of the lease. (h) Fund Accountin The Hospice maintains various types of funds as follows: Grants received from heolth authorities and other bodies are recognised when the Hospice has entitlement to the funds, any conditions around the grant have been met, and in the year to which it relates. Restricted Funds., these are funds subject to specific conditions laid down by the donor or fundraiser. The restriction is released once condition5 relating to these have been met, and funds then become unrestricted. Lottery income is recognised in respett of those draws which have taken place in the year. Other TrL7ding income is recognised on the point of sale for both donated and new goods and at point of collection for fundraising events. un￿strICted Funds.. these fall into two categories: designated funds and general funds. enditure Expenditure is accounted for on an accruals basis once there is an 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. Where possible costs are allocated directly to main expenditure categories of the SOFA, but where this is not possible these are allocated on the bases set out in the note to the accounts. Expenditure is classified under the following headings: Designated funds represent amounts which have been put aside for particular projects. The designation does not legally restrict the Trustees, discretion to apply these funds. The Hospice has the following designated funds: Capital Projects Fund: funds set aside for future capital works. Fixed Asset Fund: represents expenditure on fixed assets that has not been charged to the Statement of financial Activities as depreciation. A large part of this represents the three buildings which the Hospice cannot operate without and which cannot therefore be realised in the normal way of business. Costs of Raising Funds comprise dirert fundraising costs incurred in seeking donations. legacies and grants from trusts, together with direct costs associated with trading income together with an allocation of indirect support costs. Expenditure on choritoble ortivities includes the direct COSts of provid ing specialist palliative care and support community seNices, research and other educational activities undertaken to further the purposes of the charity, together with an allocation of indirect support costs. General funds: funds that are expendable atthe discretion of the Trustees in the furtherance of the objects of the Charity. Such fund5 may be held in order to finance both working capital and capital investment. These also include amounts to be retained by the Hospice's Funds Policy. Support costs are those costs which are necessary to the delivery of Hospice services Severn Hospice Ltd Annual Report & Accounts 202>24 23 (il Tan ible Fixed Assets Freehold properties are stated in the Balance Sheet at the cost or value at the date of receipt, less depreciation. (l) Goods Donated for Resale Donated items of goods for resale are not included in the financial statements because the Trustees considerit impractical to be able to assess the amount of donated stocks. This is because there are no systems in place to record these goods until they are sold. A stocktake would incurcosts to the Charity which wou5d far outweigh the benefits. Tangible fixed assets are stated at cost less depreciation. Any expenditure on individual assets with a value below £3,000 is written off directly to revenue. Depreciation is provided in equal instalments over the estimated lives of the assets. Im) 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 discount5 due. The useful lives assigned to assets are: Freehold property Leasehold premises Furnishings & equipment Motor vehicles 50 years 5 to 10 years 4 to 7 years 3 to 4 years Property Investments that are expected to be disposed of within a financial year are show as a current asset. Investments include listed investments, investments in group undertakings, and an investment property. (n) Cash at Bank and in Hand Cash at bank and in hand includes cash and shortterm highly liquid investments held within current and deposit accounts. Listed investments are a form of basic financial instrument and are initially shown in the financial statements at market value. They are subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Net gains and losses on the Statement of Financial Activities represent realised and unrealised gains on investments. Realised gains or losses are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains or losses are calculated as the difference between the fair value at the year- end and their carrying value. (ol Creditors and Provision Creditors and provisions a￿ recognised where the charity has a present obligation resulting from a past eventthat will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. (p) Volunteers The value of the services provided by the volunteers is not incorporated into these financial statements. Further details of their contribution are given in the Trustees report. Investments in group undertakings are the shares of the subsidiary companies which are carried at cost. ort Grou There were 9 official active Support Groups operating bank accounts in the name of the Hospice at 31 March 2024. The majority of these prepare accounts to 31 March. Fundraising income includes gross income raised by these groups, and the expenses they incur are included within fundraising costs. Investment propety is a property ￿ceIved as part of a legacy in 2009. It is currently up for sale and recognised as a current asset. (k) Stocks Stocks, which comprise goods for resale, are stated at the lower of cost and net realisable value. 24 Severn Hospi￿ Ltd Annual Report & Accounts 2023-24 (r) Pension Costs The majority of staff are members of either the National Health Service Pension Scheme {"the NHS scheme") or defined contribution schemes operated by the Charity. Contributions are made by both employees and employer. Although the NHS scheme is a defined benefit scherne, the nature of the scheme is such that the Charity cannot identify its share of the scheme's underlying assets and liabilities. accordance with FRS102, payments to the NHS scheme have been treated in the same way as contributions to the defined contribution schemes and the payments made by the Charity are charged against the profits of the year in which they become payable. (s) Financia I Instruments The Charity only has financial assets and financial liabilities of a kind that q ualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value. 2 Company SLitus and Members, Liability The Charity is a private company limited by guarantee and does not have share capital. The extent of the liability of the members to the Charity on a winding up is limitedto a maximum of £1 each. 3 Taxation The company is said to passthe testscarried out in paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income and capital gains received within categories covered by Chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of the Chargeable Gains Act 1992, to the extent that such income orgains are applied exclusively for charitable purposes. No tax charges have arisen in the year. No tax charge has arisen in the trading subsidiaries, Severn Promotions Limited and Hospice Projects Ltd due to their policy of gifting all their taxable profits to Severn H05pice Limited. Severn Hospice Ltd Annual Report & Attounts 202>24 25 Charitable Artivities 2024 £000 2023 £000 NHS income Education income 3,955 85 4,040 3,826 59 3,885 5a Lottery Severn Promotions Company Limited, a wholly owned trading subsidiary company incorporated in England/Wales, Company number 2973920, operates raffles and a weekly lottery. A summary of its provisional trading results isgiven below and reflects its trading activities forthe year ended 31 March 2024. 2024 £000 2023 £000 Lottery income Donations Investment income Total income 1,192 33 12 1,190 35 1,237 {1461 11081 1151} 1405) 832 (832) 1,230 1149) (105) {2101 (4641 766 17661 Prizes awarded Staff costs Other costs Total expenditure Net lottery income Gift Aid payments to Severn Hospice Limited Retained in subsidiary Total assets Total liabilities Fund5 {representing share capital and reserves) 300 (2941 285 {2791 26 Sevem Hospice Ltd Annual Report & Accounts 2023-24 5b Hospice Projects Limited This is a wholly owned trading subsidiary company incorporated in En8land/Wales, Company number 2229635. All new goods are sold through this company via the Hospice shops or website. A house clearance service also operates through the company. A Summary of its provisional trading results is given below and ref5ects its trading activities for the year ended 31 March 2024. 2024 £000 2023 £(￿0 Projects income Donations Interest Total income Cost of goods sold Operating costs Total expenditure Net trading profit 420 451 {2961 {641 1360) 91 424 (2861 {54) {3401 84 Gift Aid payments to Severn Hospice Limited- provisional amount due for year Retained in subsidiary {91) (841 Total asset5 Total liabilities Funds (representing share capital and reserve5} 185 (1241 61 187 (1261 61 sc Hospice Shops This is the trading arm of Severn Hospice Limited- it is not a separate trading subsidiary company. 2024 £000 2023 £000 Non gift-aided donated good5 income Gift-aided donated goods income Gift Aid on donated goods income Rag income Donations Other income Total income Staff Costs Premises maintenance and rent Other costs Total expenditure Net shops income 2,203 1,528 379 112 49 74 4,345 (1,6331 {5461 {6171 12,7961 1,549 2,126 1,442 342 122 36 43 4,111 11,456) (5091 1566) 12,53 11 1,580 Severn H05pice Ltd Annual fieport & Accounts 2023-24 27 sd Fundraising Events Income and direct expenditure from the top fundraising events in 2023/24. together with comparatives for 2022/23, is as follows". 2024 2023 Income Expenditure Net Income Income Expen(liture Net Income Dragons Lights of Love Annual London Marathon 80 50 68 (261 117} {4) 54 67 (261 (10> (4} 41 33 57 72 47 68 198 147) 151 196 {40) 156 The income and expenditure for certain events can straddle the financial year end causing tluctuations from year to year in the net income position. Investment Income 2024 £000 2023 £000 Dividends receivable on shares held Interest receivable on cash balances 209 241 450 207 98 305 Other Income 2024 2023 £000 78 £000 95 Miscellaneous items of income received for catering. insurance receipts, property rental, wayleaves etc. 28 Sevem Hospi￿ Ltd Annual Report & Accounts 2023-24 Stsff Costs & Pensions (Group) 2024 £000 2023 £000 Salarie5 Social security costs Pension costs Redundancy and Settlement Agreement costs 8,645 739 527 13 8,045 691 495 9,924 9,238 (Note Ilr) and Note 20 give further information on the pension schemes). Pension costs typically increase as a result of a combination of salary increases, and statutory employer contribution rate rises for both the NHS and auto enrolment schemes. The Charity Trustees received no remuneration or any other benefits from employment or reimbursed expenses with the H05pice or its subsidiaries in the year {2023: £nil). A note on related party transactions is given at note 21. The average monthly headcount and full-time equivalent during the year is: 2024 2023 Headcount FfE Headc¢wnt Admin 37 27 33 21 Inwme Generation 3S 20 30 16 Care 290 168 299 Shops 106 65 56 280 456 261 The number of employees whose emoluments for the year We￿ greater than £60,000 were as follows: 2024 2023 £60,000 to £70,000 £70,000 to £80,000 £80,000 to £90,000 £90,000 to £lOO,000 £120,000 to £130,000 Pension contributions relating to those staff earnin8 over £60,000 £51,565 £45.245 For the key employed and seconded management personnel, also comprising the Senior Management Team as set out on page 14, the total employee benefits were £617K {2023: £555K). Swèrn Hospice Ltd Annual Repon & Attourtts 2023-24 29 Total Expenditure {Group) 2024 Direct Costs £000 Support Costs £000 Total 2024 £000 Total 2023 £000 Charitable Activities: In Patient Care Day Care Hospice at Home Education & Research Hospital Services Lymphoedema Social Work & ChaplainL 3,521 797 2,054 136 1.710 678 443 196 5,231 1,475 2,497 332 4,863 1,421 2,426 341 44 134 339 105 271 38 65 143 336 Costs of Raising Funds: Donations, Legacies and Grants Other trading activities: Hospice Shops Lottery Projects Fundraising Events Investment Management Total Expenditure 539 477 1,016 812 2,693 385 341 62 59 10,963 103 20 19 2,796 405 360 62 59 14,712 2,531 464 340 52 47 13,814 3,749 Support costs include: Premises & Catering Basis of Allocation Floor area, estimated time, and cost Estimated time Estimated time Workstations and estimated time Estimated time & specific costings Estimated time & costings £000 £000 1,941 921 305 1.806 770 255 Central Services Finance IT Support 469 348 Vehicles 18 17 Governance 95 3,749 96 3,292 Included within group expenditure are: Amounts paid or payable to Auditors: External annual audit of accounts Other fees payable to the Auditors Depreciation Lease payments 22 22 619 461 573 424 30 Severn Hospice Ltd Annual Report & A¢¢ounts 2023-24 Totsl Expenditure (Group) 2023 Direct Costs £000 Support Costs £000 Total 2023 £000 Total 2022 £000 Charitable Activities: In Patient Care Day Care Hospice at Home Education & Research Hospital Services Lymphoedema Social Work & Chaplaincy 3,344 810 2,058 164 1,519 611 368 177 4,863 1,421 2,426 341 4,600 1,189 2,327 274 109 128 311 102 283 32 56 134 339 Cost5 of Raising Funds: Donations, Legacies and Grants Other trad ing activities Hospice Shops Lottery Projects Fundraising Events Investment Management Total Expenditure 401 411 812 705 2,450 439 328 52 47 81 25 12 2,531 464 340 52 47 13,814 2,408 428 304 18 50 12,851 10,522 3,292 Sevem Hospite Ltd Annual Report & Account$ 202>24 31 io Fixed Assets Freehold Furnishings & Property Equipment £000 Vehicles Total Charity £000 £000 Cost At l April 2023 Additions Disposals At 31 March 2024 15.298 376 3,523 594 (21 4,115 141 18,962 970 (301 19,902 128) 113 15,674 Depreciation At l April 2023 Charge foryear Disposals At 31 March 2024 3,731 309 2,923 299 109 li 128) 92 6,763 619 1281 7,354 4,040 3,222 Net Book Value At l April 2023 At 31 March 2024 11,567 11,634 600 32 21 12,199 12,548 893 Group Cost At l April 2023 Additions Disposa Is At 31 March 2024 15,298 376 3,544 594 {ioi 4,128 141 18,983 970 1381 19,91S {28) 113 15,674 Depreciation At l April 2023 Charge for year Disposals At 31 March 2024 3,731 309 2,944 299 18) 3,235 109 li 1281 92 6,784 619 {36} 7,367 Net Book Value At l April 2023 At 31 March 2024 11,567 11,634 600 32 21 12,199 12,548 893 32 Sevem Hospice Ltd Annual Reptsrt & Accounts 2023-24 11 Investments The Group The Charity 2024 £000 2023 £000 2024 £000 2023 £000 Listed UK Stock Excha nge Investments Shares in subsidiary companies Investment Property 8,380 7,736 8,380 50 7,736 50 240 240 8,380 7,976 8,430 8,026 The investment property has been transferred to current assets on the basis it is due to be sold in the next 12 months. It was revalued on 31" March 2024 at fair value by Zaza Johnson and Bath Estate Agents. Group and Charity (a) Listed UK Stock Exchange Investments 2024 £000 2023 £000 Market Value l April 2023 Disposals Acquisitions Realised gains Un realised gain/{lossesl Market value at 31 March 2024 Cash held for investment 7,531 7,959 11,104} 11,1221 1,354 1,434 57 78 424 1818) 8,262 7,531 118 205 8,380 7,736 (b) Analysis of Listed/Discretionary Fund Investments 2024 2023 £000 £000 4,240 3,852 4,140 3,884 Discretionary Fund managed by Evelyn Partners Discretionary Fund managed by Brewin Dolphin 8.380 7,736 Charity (c) Shares in subsidiary companies at cost 2024 £wo 50 2023 £000 50 Hospice Projects Limited Severn Promotions Company Limited 50 50 Sevem Hosplce Ltd Annual Report & Accounts X123-24 33 12 Stocks Group Charity 20Z4 £000 2023 £000 2024 £000 2023 £000 Goods purchased for resale through Hospice Projects Limited 18 18 li li 13 Debtors Group Charity 2024 £000 2023 £000 2024 £000 2023 £000 Trade debtors Sundry debtors Amounts due from subsidiary undertakings Legacie5 Prepayment5 Gift aid recoverable VAT recoverable 86 55 51 12 83 55 199 1,333 223 si 12 179 1,466 302 19 198 2,227 1.333 223 1,466 302 19 198 2,048 136 1,877 136 2,073 14 Creditors: Amounts Falling Due Within One Year Group Charity 2024 £000 2023 £000 2024 £000 2023 £000 Trade creditors Taxation & social security costs Accruals Amounts due to subsidiary undertakings Deferred income Other creditors 334 172 329 339 150 317 309 172 329 io 317 150 309 14 309 1,129 14 114 913 312 1,151 118 942 Creditors: Oeferred Income Amounts Falling Due Within One Year Balance GreaterThan c/fwd One Year Balance 31.3.24 clfvid 31.3.24 £000 £000 Balan b/fwd 1.4.23 £000 New Deferred £000 Released £000 Amounts Falling Due Within One Year Events income Men's Health project Compassionate Communities fund Hospital Development Fund (i) (9} 14 (10) 34 Sevem Hospice Ltd Annual Report & Accounts 2023-24 15 Restricted Funds The Group and Charity Funds for 2023-24 include restricted funds made up of the following unspent balances of donations and grants given for specific purposes. Transfer to General Funds £000 Balance at 31.3.24 £000 Balan at 1.4.23 £000 Income £000 Expenditure £000 Donations received for In Patient Care and Bereavement Donations received for the Day Units Donations received for Care at Home Services CCG funding for specifically negotiated services Hospice Garden 316 {140) 1651 118 {7) 311 (211) loo 156 517 54 1,20S 1574} (541 {9861 99 163 (651 317 The transfer to general funds of £65K represents the release of funds for the purchase of assets because the restriction placed on the funding has been met in the year. The Group and Charity Funds for 2022-23 include restricted funds made up of the followin8 unspent balances of donations and grants given for specific purposes. Transfer to General Funds £000 Balance at 31.3.23 £000 Balance at 1.4.22 £000 Income £000 Expenditure £000 Donations received for In Patient Care and Bereavement Donations received for the Day Units Donations received for Care at Home Services CCG funding for specifically negotiated services Hospice Garden 119 226 {2031 (135) 50 150) 137 (137) 162 425 {431) 156 {81 (829) 281 846 1135} 163 Severn Hospi￿ Ltd Annual Report & Accounts202>24 35 16 Unrestricted Funds The Group and Charity Funds for 2023-24 include the following designated and general funds: Resources To/From Other Funds Balance at 1.4.23 New Designations Utilised/ Released Balance at 31.3.24 Group: Desi8nated Funds: Capital Projects Fund 2,843 (843) 2,000 Fixed Asset Fund 12,199 15,042 11,977 969 (620) (1,4631 {12,2621 12,548 Total Designated Funds Group General Funds 969 13,008 14,548 12,788 65 Total Group Unrestricted Charity: Total Designated Funds Charity General Funds Total Charity Unrestricted 27,019 13,977 (13,725) 65 27,336 15,042 11,960 27,002 969 12,243 13,212 11,463) 111,4971 (12,9601 14,548 12,771 27,319 65 65 The Group and Charity Funds for 2022123 include the following designated and general funds: Resources To/From Other Funds Balance at 1.4.22 New Designations Utilised/ Released Balance at 31.3.23 Group: Designated Funds: Capital Projects Fund 2,500 (186) 529 2,843 Fixed Asset Fund 12,151 145 621 (573) 12,199 Energy Sustainability Fund Service Development Fund Total Designated Funds Group General Funds (1451 417 (33) (7921 112,193) 13841 15,213 12,091 621 11,943 15,042 11,977 135 Total Group Unrestricted Charity: Total Designated Funds Charity General Funds Total Charity Unrestricted 27,304 12,565 112,985) 135 27,019 15,213 12,074 27,287 621 11,139 11,760 (792) (11,388) (12,1801 15,042 11,960 27,002 135 135 36 Severn H05pice Ltd Annual Report & Accounts 2023-24 17 Allocation of Group Net Assets between Funds 2024 Restricted Funds 2023 Totsl Unrestrirted Restricted Funds Funds £000 Unrestricted Funds £000 Total £000 £000 Fund balances at 31 March are represented by: Tangible fixed assets Investments Current assets Creditors due within one year Creditors due greater than one year Total Net Assets 12,548 8,380 7,559 12,548 8,380 7,876 12,199 7,976 7,973 12,199 7,976 8,136 317 163 {1,151) (1,151} (1,129) (1,1291 27,336 317 27,653 27.019 163 27,182 18 Operating Lease Cornmitments At March 2024, the charity had future minimum lease payments under non-cancellable operating leases in respect of Hospice shops due as follows: 2024 £000 410 783 2023 £000 161 168 Within l year Between 2 and 5 years Over 5 years to end of lease term 1,193 329 19 Controlling Party The Company, having no share capital, is under the control of the Directors who also att as Trustees. 20 Pension Commitments The Company and its subsidiaries operate a defined contribution scheme available to all permanent employees. Pension auto-enrolment legislation came into force for the Hospice in February 2014 and has been complied with from that date. The Company and its subsidiaries also make contributions to the National Health SeNice Pension Scheme for certain employees. Contributions are charged in the financial statements as they are incurred and there were no outstanding contributions as at the balance sheet date. Pension costs charged in the year were £527K consisting of £294K paid to the NHS Scheme, and £233K paid to the defined contribution schemes12023: £285K and £210K respectively). 5evern Hospice Ltd Annual Report & Accounts 202>24 37 21 Related Party Transartions Mike Tudor is the husband of the Chief Executive and is employed by Thornton Firkin who provide Quantity Surveyor services to the Hospice. The charity paid a total of £IOK in the year to Thornton Firkin 12023: £20K}. There were no amounts owed at the year end. There were no other related party transactions in either the current or previous year. 22 Contingent Assets and Liabilities As at 31 March 2024 the Hospice had been notified of several residuary, pecuniary and specific legacies, some of which have life interests, where the timing of realisation or value of these estates was uncertain. Therefore, no amounts have been accrued in respect of these legacies which are estimated to be in excess of £1,480K {2022123 in excess of £1,650KI. 23 Reconciliation of Net Income to Net Cash Flow from Operating Activities Group 2024 £000 Group 2023 £000 Net income/(expenditure) for the reporting period (as per the statement of financial activities) 471 (4031 Adjustments for: Depreciation charges Dividends, interest, and rents from investments (Gains)/Losses on investments Increase in stocks Decrease/(increasel in debtors Increase in creditors 619 14501 14711 171 171 22 573 {3051 685 {6641 75 Net cash provided by operating activtties 355 {39) 24 Analysis of changes in net funds Balance at 1.4.23 Cash flows Other non-cash changes £000 Balance at 31.3.24 £000 Cash and bank 6,077 {326) 5,751 38 Severn HospKce Ltd Annual Report & Accounts 2023-24 25 2022-23 Comparative informatton CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income & Expenditure Account) For the Year Ended 31 March 2023 Unrestricted Funds 2023 £000 Restricted Funds 2023 £000 Totsl Funds Totsl Funds 2023 2022 £000 Income From: Note Donations and legacies: Donations Legacies Grants from Charitsble Trusts 128 196 91 415 1.494 2.170 124 3.788 1,361 2.393 324 4.078 1.974 33 3,373 Charitable Artivitie5 Covid Related Grants 3.460 425 3.88S 3,895 ioi Other trading artivities: Lottery Projects Shops Fundraising events 1.190 420 4.111 302 6,023 1,190 420 4,111 302 6.023 1,176 370 3,515 199 5,260 Investments Other 305 89 305 95 87 Total Incorne 13.250 14.096 13,609 Expenditure on: Raising Donations. Legacies and Grants 812 812 705 Other trading activities: Lottery Projects Shops Fundraising events Investment management costs Costs of raising funds 428 304 2,408 18 50 3,913 340 2.531 52 47 340 2.531 52 47 4,246 4.246 In patient care Day cère H05pice Outreach Hospice at home Education and research Hospital serv2ce5 Lymphoederna Social Work & Chaplaincy Expenditure on tharitable artivities 4.382 1.359 973 1.227 281 4.863 1,421 1,109 1,317 341 4,600 1.189 1.042 1.285 274 109 128 311 8,938 62 136 90 134 339 9,568 339 8.739 829 Total eX￿ndItUre 12,985 829 13.814 51 Net income for the year and net rnovements in funds before110sses11 gains on investments Net Ilossesl/ gains on investments 265 17 282 758 (68SI 16851 185 Net Idefiatl/ surplus for the year Transfers between funds Net movement in funds Reconciliation offunds.. Total funds broughtfop4vard Total funds carried forward 1420) 135 (285) 17 1135) (118) 1403) 943 (403) 943 27,304 27,019 281 27.585 27,182 26,642 27.585 163 Severn Hospi￿ Ltd Annu31 Report & Accounts 202>24 39