2025-03-31-accounts

Teesside Hospice Care Foundation

(A Company limited by guarantee)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Company No. 01642201 Registered Charity No. 512875

TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

Statement from the Chief Executive

“As we look back on the last year it’s been remarkable to see the difference the team at Teesside Hospice have continued to make to individuals and families affected by life limiting illness. We continue to focus on delivering specialist-level palliative and end of life care, alongside wellbeing, bereavement support and lymphoedema treatment. Our ambitions to be there for everyone that needs us and to provide the best care we can has led to new and innovative ways to reach out into our community and opening up access to hospice care for those who might not previously have known about us.

We continue to engage in clinical and service developments, engaging in medical research, implementing new digital healthcare, and further developing the skills mix within our teams. Using our unique specialist skills and knowledge within the team to deliver training outside the hospice, raise public awareness about death and dying in a timely and supportive way.

Of course, the year hasn’t been without its challenges. We are noticing a change to the demographic of people who need our clinical services. More younger people, with increasingly complex conditions, are being admitted to our InPatient Unit. These patients require more support, which is increasing pressure on our staff, but our wonderful team is coping admirably.

Recent legislative debates regarding assisted dying have raised the profile of palliative and end of life care and the funding required to ensure everyone can make an informed balanced decision on their needs and wants in this respect. However, funding for the hospice is still a challenge, meaning the pressure on our fundraising and retail teams is unrelenting.

Teesside Hospice wouldn’t be able to function without the support of its wider partners across the system. This year has seen further integration and even closer collaboration with our health partners at South Tees NHS and social care in Middlesbrough, Redcar and Cleveland. Additionally, closer co-operation within the hospice network itself continues to deliver opportunities to learn, share and collaborate in order to bring greater benefits for those we are here to serve.

This report showcases our achievements over the last year and ambitions for the next. Hospice care is very much a team activity, and my thanks go to everybody who has contributed to our work this year. Partners, supporters, donors, funders, staff, volunteers - on the front line, back office, in retail and fundraising - and others still opening doors and championing the cause on behalf of Teesside Hospice

Mike Thornicroft Chief Executive

TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

Directors and Trustees

The directors of the charitable company (the charity) are its Trustees for the purpose of charity law. The Trustees and officers serving during the year and since the year end were as follows:

	J. Davies
	M.P.R. Firman
	C. Langrick
	J. Sheridan
	G. Whitehead – Chairperson
	D Lusardi
	J Hodgson –(Appointed 5/12/24)
	R Pugh –(Appointed 27/2/25)
	S Quinn –(Resigned 23/01/2025)
Key management personnel:	All Trustees as listed above and the Senior Management Team:
	Chief Executive – M. Thornicroft
	Finance Director/Deputy CEO – A. Wardle(resigned 31/12/2024)
	Director of Nursing & Quality – D. Edwards(resigned 31/1/2025)
	HR Manager – L. McMann
	Head of Retail – C. McMahon(resigned 30/04/2024)
	Director of Income Generation – K De Lehenstein Collins (appointed 03/06/24)
	Director of Resources – K Frazer (appointed 06/01/2025)
	Director of Nursing & Quality – R Common (appointed 06/1/2025)
	Head of Retail – Ashleigh Trotter- (appointed 29/07/2024)
Company registration number:	01642201
Registered charity number:	512875
Registered office:	1 Northgate Road
	Linthorpe
	Middlesbrough
	TS5 5NW
Bankers:	Royal Bank of Scotland
	31 Grey Street
	Newcastle Upon Tyne
	NE1 6ES
Solicitors:	Jacksons Law
	17 Falcon Court
	Preston Farm Industrial Estate
	Stockton on Tees
	TS18 3TU

TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

Auditors:	Waltons Business Advisers Limited
	Maritime House
	Harbour Walk
	Hartlepool
	TS24 0UX
Investment advisors:	Rathbone Investment Management
	Earl Grey House
	75-85 Grey Street
	Newcastle
	NE1 6EF

TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

The Trustees are pleased to present their annual report together with the financial statements of the charity and group for the year ended 31 March 2025. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the organisation’s Memorandum and Articles of Association 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 (FRS 102) (effective 1 January 2019).

Since the group and the Charity qualify as small under section 383 of the Companies Act 2006, the group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

The principal objective of Teesside Hospice Care Foundation during the year was that of providing hospice services for the public benefit. The hospice exists to enhance the quality of life for those suffering from life-limiting illness and offers specialist palliative care and support to patients and carers, in the belief that each person is entitled to dignity and choice within the best provision of care.

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charities Commission. The Trustees have considered this guidance in shaping the charitable company’s objectives for the year and planning current and future activities. Further details of the activities which provide public benefit are given below.

The hospice benefits the public by providing all of its services free of charge. The main catchment areas are Middlesbrough and Redcar & Cleveland. If it is appropriate, the Hospice accepts referrals from anywhere in the UK without prejudice. The clinical services at Teesside Hospice are provided for individuals with a life-limiting illness and this care is available regardless of their diagnosis. Although the majority of patients have advanced cancer, noncancer diagnoses are also treated. Bereavement counselling services (adult and children) are accessible to any individual suffering from bereavement.

Teesside Hospice helps many members of the public each year and relies on other sources of income such as grants, donations and trading activities to cover its operating costs.

Strategic aim and objectives

The charity’s strategic aim is to provide holistic palliative care at any point during a life-limiting illness. The majority of the charity’s work focuses upon pain and symptom control and end of life care. All the charitable activities are undertaken to further our charitable purposes for the public benefit and fully reflect the purposes that the charitable company was set up to further.

Teesside Hospice is greatly supported by the local community and relies on voluntary help. The Hospice has an established team of volunteers who offer their time to all areas of the hospice. The volunteers are a valued resource to the organisation, enabling lower staff costs than would otherwise be the case. The active volunteer workforce has increased during the year and the count which we aim to increase further is approximately 375.

Our strategic plan was updated in January 2025 and was set for the next 3 years until 2028. The Board of Trustees and Senior Management Team hold the details which fall under the following four areas:

• Clinical – We will widen services, deliver services to people where they need them, be the preferred deliverer for Specialist palliative care, deliver excellent Lymphoedema, mental health and wellbeing services to our beneficiaries and provide effective support for complex grief and trauma.

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

• Income Generation – We aim to be the charity of choice across Teesside, increase sustainable income in fundraising and retail to help grow our services. We will engage with our community to develop and improve doner experience.

• People – We aim to be the best place to work and volunteer in Teesside, and to embrace and support the wellbeing of staff and volunteers.

• Resources – We aim to reduce our reliance on statutory funding, to grow and develop new commercial income initiatives, to embed environmental sustainability into all aspects of our work. To continually improve efficiencies and effectiveness utilising technology to keep up with trends.

Activities for achieving objectives

The charity’s range of specialist palliative care services include:

• Ten bedded Inpatient Unit providing specialist care for patients with complex symptoms and end of life care

• Wellbeing Services empowering those in our care to achieve their goals and improve their quality of life

• Bereavement Counselling Services offering counselling for complex grief and trauma to adults and young people from the age of 7 years and up

• Community In-Reach in partnership with the Adult Social Care Discharge Fund to work alongside colleagues from the acute trust to increase assessment and planning capacity within the network

• Tees wide specialist Lymphoedema clinics

Structure, governance and management

Governing document

Teesside Hospice Care Foundation is a charitable company limited by guarantee (incorporated 9 June 1982 No. 01642201) and as such is governed by its Memorandum and Articles of Association, last amended by special resolution dated 27 August 2020. It is registered as a charity with the Charity Commission (No. 512875). Members of the charitable company are the Trustees who have guaranteed liabilities of the company up to a maximum of £1 each.

Governing body

The charitable company has a Board of Trustees in accordance with its Articles of Association, who are required to serve as members of the charitable company. The Board is made up of the Trustees who are elected by the members at a Board meeting. Each Trustee is required to meet specifications concerning eligibility, personal competence, specialist skills and local availability.

Teesside Hospice (Trading) Limited is 100% owned by the Charity. The Trustees have no interest in the shares of the subsidiary company, other than as directors of the parent company.

Trustee recruitment, induction and training

Trustees are recruited through word of mouth or through advertising in the local press and on our own website.

Whilst new Trustees are often familiar with the work of the hospice, they are inducted into the working environment of the hospice. New Trustees receive a detailed induction, an explanation and discussion session is also held with both the Chair and Chief Executive, where new Trustees are briefed on their legal obligations under both Company law and Charity Law. Trustees are also encouraged to spend time with Senior Managers from across the organisation and this has been found to be highly beneficial. Trustees also have an annual away day.

All Trustees give their time voluntarily and receive no benefits from the charitable company. Any expenses reclaimed from the charitable company are set out in note 14 to the financial statements.

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

No members of the Board of Trustees have served a term longer than the recommended period of nine years and Board composition has been heavily reviewed in prior years, and continues to be, to ensure an appropriate skill mix is present.

Organisational structure

The Board currently consists of 8 Trustees who meet at least four times per year to determine both the general and strategic direction and policy of the charity, and to review its overall management and control for which they are legally responsible. Other sub-committees (finance & facilities, fundraising, workforce development, quality & performance) meet as appropriate to discuss relevant issues. All sub-committees report back to the Trustees and have Trustee representation. In addition, the Senior Management Team meet fortnightly. Each sub-committee has a mandate from the Board to receive, consider and agree policies on behalf of the Board with the exception of those policies deemed by the committee to be contentious or of particular significance to the organisational culture. In these cases, the chair of the committee will then have the responsibility of presenting the policy for discussion at the next Board Meeting or convening a special meeting of Board members if deemed necessary.

A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the charity and responsibility for the provision of the services rests with the Chief Executive. A scheme of delegation is in place, ensuring that the charity delivers the services specified and the Chief Executive is aided in his duties by departmental managers.

Pay policy for key management personnel

The Trustees consider that key management comprise the charity’s Trustees and the Senior Management Team who are in charge of directing and controlling, running and operating the charity on a day-to-day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in notes 14 and 34 to the accounts.

With effect from 1 April each year the National Minimum Wage (NMW) increases. For the 2024/25 year, pay was increased for all staff including SMT by a varying percentage. Teesside Hospice strives to pay all its staff at an appropriate level taking into account our financial position and market pressures.

Staff

Teesside Hospice is committed to providing a working environment which is free from discrimination and encourages diversity and promotes a positive culture whilst developing itself as an ‘employer of choice’. Our aim is to be truly representative of all sections of society and for each member of staff to feel respected and able to give their best. This policy extends beyond staff and volunteers to all service users, stakeholders and supporters.

The Teesside Hospice staff and volunteer survey encompasses all aspects of the workforce, paid and unpaid, and was completed in December 2024. The majority of responses were completed online. This was sent to all employees and all volunteers where an email address was on record via the HR team and for those who required it, a number of paper surveys were also provided – all responses both online and in paper format were anonymous. We received a total of 151 responses which was a 34% increase from the May 2023 survey.

In 2024 we signed up for the Aging Better Pledge and renewed our Disability Confident Pledge.

Our fundraising practice

Teesside Hospice’s Fundraising Committee ensures that appropriate scrutiny and oversight has been applied to fundraising activity, performance and delivery. Development opportunities and future growth is debated, planned and actioned. The Committee meets quarterly whilst the SMT member of staff with day to day operational responsibility for fundraising activity (including lottery activity) is the Director of Income Generation. Teesside Hospice is registered with the Fundraising Regulator and is a member of the Hospice Lotteries Association. There have been no failures to comply with regulation nor have there been any complaints received. Risks associated with fundraising activity are continuously examined by inclusion in the operational risk register. In April 2022 we commenced using an external

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

company to recruit new lottery members and it was ensured that their work was conducted in accordance with the agreed contract, reflecting the values and behaviours expected by Teesside Hospice. All staff and third parties receive training on protecting vulnerable individuals - if it is felt that a person is not capable of making an informed decision about supporting Teesside Hospice, e.g. because of mental health problems, learning disabilities or substance misuse relating to alcohol or drugs, attempts must not be made to sell any fundraising related product. Teesside Hospice operates an over 18s policy in respect of lottery membership and education is provided to staff on ways to spot a problem gambler.

Related parties

The charity’s wholly owned subsidiary, Teesside Hospice (Trading) Limited is established to provide a trading arm to the charity. The principal activities of the subsidiary are that of lottery organiser and charity shopkeeper. The subsidiary gift aids all of its taxable profits to the charity.

Strategic Report

Achievements and performance

The charitable company’s policies in the pursuit of its objectives are kept under regular review. The Board of Trustees considers the activities of the company during the year to be satisfactory. The funds and resources are used entirely for its main objective. The movements in funds are described in the consolidated statement of financial activities on page 16.

The Quality and Performance Committee

The Quality and Performance Committee is designated by the Board of Trustees to oversee the development and implementation of the professional framework for nursing, medicine, allied health and social care disciplines at Teesside Hospice. Issues relating to national, regional and local policies are debated, ratified and actioned by the committee in line with the agreed terms of reference. Membership of the committee is made up of multi professional staff that all contribute to the success of the committee.

Subgroups are formed as required and report to the Quality and Performance Committee.

Teesside Hospice always strives to deliver excellent, much needed services to the local people and its success depends on the delivery of safe, responsive and effective care and how valued we are by the people that need us. We monitor the care we provide, seek assurances that we provide high standards of care and outline aspirations that support our delivery of the strategic aims. Feedback from our patients, families and friends is very important to us so that we can understand their personal experiences. They are at the centre of everything we do at the hospice. This enables the translation of user comments into real improvements. We use this feedback to continuously strive to improve the quality of our services. Feedback can be obtained via questionnaires, patient and carer groups, surveys, outcome reports, suggestions and comments and complaints and compliments. Throughout the year, there has been continuous evaluation of the services and any concerns have been addressed in a timely way.

The Care Quality Commission

Teesside Hospice is required to register with the Care Quality Commission (CQC) and its current registration status is for the following activities:

• Treatment of disease, disorder or injury

Teesside Hospice is registered with the following conditions:

• Services are provided for people over 18 years old

• The maximum of 10 patients may be accommodated overnight

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

The last unannounced routine inspection of Teesside Hospice took place on 16[th] March 2016. Our feedback was very positive and we received an overall rating of GOOD for our service. No areas were rated as inadequate. On 8[th] February 2021, relevant members of the SMT had a Transitional Monitoring Approach (TMA) call with the CQC. Positive feedback was given, and this did not result in any follow-up action such as an immediate visit. The CQC now use a mix of onsite and offsite monitoring and in accordance with this approach, they carried out a review of the data about Teesside Hospice in July 2022. They found no evidence to suggest that they needed to carry out an on-site inspection or reassess our rating. Regular contact is maintained with the CQC as appropriate.

Inpatient Unit (IPU): There were 154 patients who received inpatient care (170 episodes of care) with a variety of complex needs. The average length of stay for patients is 16 days. 34% of patients were discharged to their homes or a care home. 65% of patients received end of life care and 1% were discharged to the hospital/other services.

Wellbeing Centre: 2024/25 There were 642 face-to-face sessions with 2,440 patient contacts which were individual and group sessions involving morning and afternoon programmes. 1,003 telephone contacts were made to patients.

Lymphoedema Service: The lymphoedema clinic received 776 referrals over the course of 2024/2025. There were 3,644 patient interactions including clinic/home visit appointments, education, advice calls and IPU and Wellbeing patients seen. There were 1,449 patients on the lymphoedema clinic caseload at the end of March 2025.

Bereavement Counselling Service: From April 2024 to March 2025 there were 1,821 bereavement counselling appointments attended (individual adults: 208 attended 1,821 appointments and children & young persons: 57 attended 207 appointments). These appointments were face to face, either as individual or group sessions

Volunteers

Teesside Hospice has an established team of volunteers who offer their time to each department across both the Trading Company and the Charity. The current headcount is in the region of 370 volunteers working side by side with paid staff to support them to fulfil their duties. Volunteers are a valued resource to the organisation, and we recognise their commitment and value. The Board of Trustees and Trading Company Directors, who have uppermost authority for controlling the activities of Teesside Hospice are volunteers.

Financial review

The Financial Statements are prepared in accordance with Financial Reporting Standard 102 (FRS 102) and the Charities SORP (2019).

Teesside Hospice, for 2024-25 generated a deficit of (before unrealised investment gains) of £187,895. Without legacy income this result would have been deficit (£846,110). We commenced the year with a deficit budget of (£333,021) (excluding unrealised gain/loss on investment). The position at the year-end was more favourable than anticipated. The principal positive variances arose from: supplementary Integrated Care Board (ICB) funding in respect of additional support services provided, and legacy income outperforming expectation. There were negative variances in both fundraising and retail income and additional measures have been put in place to address this going forward.

Donations and legacies have decreased by £244,555 (11%). Legacy income is the largest contributor to this income heading and is very unpredictable. Legacy income totalled £658,215 which although was over budget was a decrease of £220,930 on the prior year. Legacy income has contributed £7.2 million in the last fifteen years. This year our legacy donations included a property that we have now refurbished and intend to let out to generate rental income. Donations have decreased very slightly in in the year which is predominantly because of not receiving as many grants in 2024-25. Sponsored events income and general donations increased in relation to the prior year.

Charitable activities income has increased in total by £139,651 primarily due to contract value increases, and funding to support Stockton Patients.

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

Trading income has decreased by £93,191. This includes an increase in catering contributions of £14,013. Retail sales have reduced by £20,876; fundraising has reduced by £46,110 and lottery reduced by £44,218. Changes have been made to both retail fundraising and lottery in 2024-25 and it is anticipated that results will improve in 2025-26.

Expenditure on charitable activities on page 17 has increased by £530,371. Whilst the commitment to the control of expenditure remains, the economic environment means that rising costs were (and are) inevitable. This is also due to the increased complexity of patients and increased demand of services across the hospice.

Cash at bank and short-term investments total £3.8 million as of 31 March 2025. Liquidity and reserves are in constant focus and we endeavour to strike a balance between cash at bank and in investments. Due to the increased levels of cash and interest rates, bank interest investment income has increased in the year by £23K.

The principal assets of the Hospice are buildings dedicated to the provision of Specialist Palliative Care Services which include the Inpatient Unit, the Wellbeing Centre and the Bereavement Counselling Centre. In February 2019 the Charity completed the purchase of land adjacent to the current Hospice buildings. The land currently adds value to the overall grounds of the hospice land and buildings but needs to be thought about in future planning.

The Charity relies on the support of the local ICBs, the support of the community and its own commercial activities to continue operating. The Trustees continue to ensure the success of the Charity through close monitoring and control of clinical and support operations and close working with local partners to ensure their continued support. A key element in the management of financial risk is a regular review of funds on deposit, investments, legacy income due, debtors, creditors and working capital.

The net decrease in unrestricted funds was (£135,076) (2024: increase £874,582). Unrestricted funds are the operational reserves of the charity. The Trustees continually review the financial sustainability of Teesside Hospice and thanks are expressed to all staff and volunteers of the hospice who have made tremendous efforts to keep running costs to a minimum whilst maintaining a high standard of care to patients and their families and a safe working environment for all staff and volunteers.

Commercial Activities

It has been another year of operating within a difficult fundraising landscape. The ever-changing environment has hit our local community hard. We have had to be resourceful and creative with our approach to income generation.

This year has seen a lot of changes in the fundraising team with a new Director of Income Generation, and a lot of changes within the team. By the end of the year however there was a new staffing structure in place for the fundraising team with them also being back to full capacity.

By focusing on what matters the most to our community and tailoring our ask to fit the operating environment, we have successfully brought in an income of £3,263,518 which was a reduction on the previous year of £117k.

Charitable Activities

Funding is provided by Clinical Commissioning Groups on behalf of the Integrated Care Boards (ICBs). In recent years, the grants received from what is now called the North East & North Cumbria ICB have seen small growth. In 2024/25, the contract value was uplifted by 1.3% then by a further 2.2%. The Hospice continues to work closely with the ICB in respect of its services.

It is recognised that legacies are a critical element of the charitable company’s funding, and the timing and amount of this income is uncertain. In the fifteen years to date, the annual legacy income averages approximately £500k (excluding an exceptional legacy of £695,000 in 2014/15 which significantly increased income in that year). The

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

Board of Trustees recognises the need to continue to develop a legacy strategy whilst also developing income from other sources.

Key Performance Indicators are as follows:

	2024/25	2023/24
Increase in Tees Valley ICB contract value	3.5%	3.14%
Increase in Humber and North Yorkshire ICB contract value	2.9%	1.8%
Social media followers at year end–all platforms	19,608	26,208
(De)/Increase in total funds	(119,012)	876,714
Number of legators included in income for the year	16	24
Number of active retail gift aid donors in year	6,655	5,880
Lottery entries in last draw of the year	9,894	10,377
Fundraising element of income generation ROI	2.6	2.9
Would you recommend the service - patient satisfaction survey IPU	Definitely 100%	Definitely 96% Possibly 2% Never 2%
Would you recommend the service - patient satisfaction survey Wellbeing	Definitely 100%	Yes 97% Maybe/blank 3%

Risk management

Keeping patients, families, staff and visitors safe, as well as protecting the organisation, is a fundamental principle at Teesside Hospice and as such risk management is a high priority within the organisation.

The Board of Trustees has conducted a review of the major strategic, business and operational risks to which the hospice is exposed and has produced a corporate risk register. The Senior Management Team review and update the operational risk register on (at least) a quarterly basis.

Dashboards were also produced for each department and presented at committee meetings. If there are areas of concern, or risks are identified, they are discussed at the Risk, Health and Safety Sub-Committee (RHSC) meetings and action is taken to mitigate risks. The RHSC ensures policies, procedures, systems, controls and awareness programmes are in place to minimise risks. We also engage the services of an external consultancy company to add an additional layer of scrutiny.

The diverse nature of the group’s activities mean Teesside Hospice is exposed to numerous risks daily. Corporate risks include damage to reputation, fraud, compliance issues, loss of funding and IT security. Each department has had input into the operational risk register which provides further control over day-to-day risks faced.

Teesside Hospice sets expectations that all employees and volunteers will comply with all laws and regulations governing our company’s behavior. When this is not the case, information is reported up internally within the organisation to Senior Management and shared with the Trustees, the external auditors and regulatory bodies as appropriate. Teesside Hospice takes compliance issues very seriously, investigating each one, and revisiting our operational controls. A full list of laws and regulations is maintained. Non-compliance is a major threat to the organisation which could result in patient services being closed or income generation being stopped.

Reserves

In considering our policy on reserves, the approach taken has been to split the reserves required into constituent parts. Firstly, to look at future forecasts in order to ascertain a working capital reserve. This encompassed looking at future budgets with a range of best to worst case scenario planning. Next it was necessary to look at income risk i.e. the figure needed to manage and survive any unprecedented or unpredicted loss of revenue and not to be used to

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

permanently fund budget deficits but to be used to manage in emergency circumstances. Finally, it was necessary to consider expenditure risk. Our risk register captures everything that would require us to draw on reserves, each risk has an estimated cost and cumulatively give rise to a need to draw on reserves should the risks become a reality.

Our acceptable balance of free reserves is reviewed annually by the Finance & Facilities Committee and moving into 2025/26 the risk based approach above has defined an acceptable level of £3,100,000. Teesside Hospice has a strong balance sheet with free reserves exceeding this figure. This excess will play heavily into the strategy to be produced in 2025/26 led by the Chairperson and CEO with input from all Trustees and SMT.

The hospice group currently has free reserves of £3,401,424 (2024: £3,714,343). In calculating free reserves, the Trustees have excluded from total funds the restricted funds (£562,545), unrestricted tangible assets (£1,003,282), the fixed assets investment properties (£289,950), the investment portfolio (£4,161,193) and designated funds (£519,799).

The above items must be excluded from total funds as it is essential to determine funds which are not subject to donorimposed conditions (restricted) and hence are freely available for general (unrestricted) purposes. Free reserves are the resources the charity has or can make available to spend, after allowing for fixed assets and future spending plans. For full details of the designated funds and restricted funds and see notes 29 and 30.

Trustees have agreed the serious consideration of purchasing freehold property. Presently, all our retail stores are leased. The only exception to this is the premise at 410 Linthorpe Road which is owned by the charity. The lower floor is used for retail and the upper floor for office space. The addition of freehold property into our portfolio would bring a long-term asset for the business whereas rent is investing in another person’s asset. A designated fund of £500k has been carried forward for the purchase of commercial property. It may be that this designation is increased in the future, but the value of this designation would be sufficient for the coming years.

Deficit budgets are forecasted, and we accept that reserves will be needed whilst we work through the current economic situation and the reviews being conducted by the NHS. We continue to look for cost improvements and new revenue initiatives. The aim is to hold sufficient free reserves to cover deficits in the future.

In line with the corporate objectives, the digital development of the organisation is a priority. Teesside Hospice will continue to take a collaborative approach to adopting digital solutions, developing digital roadmaps for each of our business functions which offer greater integration both internally and externally. We will invest in improving our knowledge, capability and confidence and as such a designated fund of £19,799 remains at the year end. Considerable investment has been made in the year into the IT infrastructure at the hospice which has been part funded by the capital Hospice UK Income.

Investment powers and policy

Under the Memorandum and Articles of Association, the charity has the power to invest moneys not immediately required for its purposes, as thought fit, subject to good practice conditions. The Board of Trustees selects a group of Trustees to form the Finance & Facilities Committee, which in turn is responsible for overseeing the selection of professional investment advisors to aid the charity in identifying suitable investment for its funds.

No additional funds have been added into the investment portfolio in the financial year. At the year end, the unrealised gain on investment holdings for the 2024/25 year amounted to £68,885 (2024: gain £255,107).

The current investment property was professionally valued with no change (2023: no change). An additional property was left in a legacy to the charity in February 2025 valued at £169,950.

Plans for future periods

The priorities for quality improvement we have identified for 2025/26 are set out below. We have selected one that will impact directly on each of the three headings: patient safety, clinical effectiveness and patient experience.

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

Improvement 1 – Patient Safety (Introduce an electronic paperless system to enhance non-conformance and incident Reporting)

At Teesside Hospice we are constantly innovating and looking for ways to improve quality care. Currently maintenance requests are logged via telephone. This requires our small estates and facilities team to listen to voicemails and answer the phone to listen to required repairs and maintenance. This can often take them away from urgent requests. Implementing a virtual system will allow the team to effectively and efficiently respond to maintenance requests, improving safety across the Hospice. This system will also provide a database for the user to view the status of any request and allow the hospice senior management team to provide assurance to board of continuous maintenance, service and repair of critical areas.

Effective incident management and robust health and safety systems are integral components of clinical governance, particularly within palliative and end-of-life care, where patients are especially vulnerable and care delivery is often complex. The Hospice currently operates a paper-based incident reporting system which is overseen by an incident reporting group, reporting to the Hospice board via the Risk Health and Safety subcommittee. Introducing a new electronic incident reporting system will update current processes and support a learning-focused, system-level approach to managing patient safety events, which is particularly important in settings with low incident volumes but high emotional and clinical sensitivity (NHS England, 2022).

In palliative care, ensuring comfort and dignity is paramount. Incidents such as medication errors, pressure damage, falls and/or communication breakdowns can have significant emotional impacts. Reporting and learning from these incidents help improve outcomes and align care with patient preferences (Gomes et al., 2013).

Incident management and risk systems, guided by Patient Safety Incident Response Framework (PSIRF), are crucial for improving safety, supporting staff, and fostering compassionate learning in palliative and end-of-life care. In settings where harm can be deeply personal, a sensitive, systems-based approach to safety is not only best practice— it is ethically essential.

Throughout 2025 we will develop an implementation plan which will be overseen by the Risk Health and Safety Committee. The plan will ensure delivery of the project in a staged manner utilising a co-design process ensuring key hospice stakeholders are involved.

Throughout the year key milestones will be highlighted and delivered commencing with the launch of a new maintenance portal allowing staff to log maintenance and service requests electronically. The service will be evaluated by seeking staff feedback and any adjustments required will be implemented. Once this is established and outcomes are evaluated the project will progress to implement other key milestones over coming years including: -

• Development of electronic incident reporting

• Development of incident reporting dashboards for all services

• Development of risk assessment module

• Development of audit schedule

• Development of COSHH database

Incident management and risk systems, are crucial for improving safety, supporting staff, and fostering compassionate learning in palliative and end-of-life care. In settings where harm can be deeply personal, a sensitive, systems-based approach to safety is not only best practice it is ethically essential. Our new system-based approach will support our Hospice vision.

Improvement 2 – Clinical Effectiveness (Improve the current clinical referral process to enhance quality of care

Clinical research and national evidence (Huie et al, 2016) highlight significant variability in referral processes across palliative and end-of-life care services, contributing to delays, incomplete information, and inconsistencies in patient access. These issues can lead to fragmented care, delayed admissions, and suboptimal outcomes. At a local level, the current referral process reflects these challenges.

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

To address them, the Hospice clinical team will co design and lead the development and implementation of a streamlined, standardised referral system to ensure timely, efficient, and coordinated transitions of care. This quality improvement project will be supported by Quality Improvement methodology and co-produced with system partners.

How will this be achieved?

• The clinical team will review the current referral criteria and process utilising Quality Improvement (Qi) tools such as process mapping and Cause and effect to understand the challenges and develop ideas for change.

• A project plan will be developed with key stakeholders.

• Areas for improvement and testing will be agreed utilising Plan, Do, Study, Act cycles of positive change.

• Once evaluated a communication strategy will be developed to share learning and new referral processes with system partners.

Improvement 3 – Patient Experience (Implementation of Purpose T to improve Patient Experience in Palliative Care)

As part of our ongoing commitment to improving the quality of care and patient experience, this year we have chosen to focus upon improving pressure ulcer clinical assessment. We want to ensure that patients who are at risk of developing pressure ulcers are correctly identified and assessed utilising the latest evidenced based practice.

Purpose T, which stands for the Pressure Ulcer Primary Or Secondary Evaluation Tool is an evidence-based framework developed to support clinical teams in the early identification and management of patients at risk of developing pressure ulcers. It promotes a structured, person-centred approach to skin assessment, enabling timely interventions that reduce avoidable harm.

Within palliative care, patients are particularly vulnerable to skin breakdown due to reduced mobility, frailty, and complex symptom management needs. By embedding Purpose T into routine care practices, we will strengthen our ability to:

• Detect early signs of pressure damage and deterioration,

• Deliver proactive, preventative care,

• Engage in meaningful bedside assessments that enhance patient dignity, comfort and experience of care.

How will this be achieved?

The following strategic actions have been developed to ensure the effective implementation of Purpose T and to support sustained improvements in patient experience and outcomes:

1. Leadership and Strategic Oversight

The implementation of Purpose T will be embedded into practice at Teesside Hospice ensuring alignment with national priorities (NHS Improvement, 2018). Senior nursing leaders will provide visible and sustained leadership, recognising the importance of transformational leadership in embedding cultural and behavioural change.

Progress will be governed through the Hospice Clinical Care Steering Group and reported to the Hospice Board via its subcommittee the Quality and Performance committee.

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

2. Staff Training and Competency Development

A targeted, interdisciplinary education programme will be delivered to staff including Medical, Nurse and Allied Health Professionals, in line with guidance from the European Pressure Ulcer Advisory Panel (EPUAP, 2019). Training will incorporate scenario-based learning and reflective practice techniques to promote clinical reasoning and confidence in applying Purpose T. The tool will be adapted to utilise in an electronic format within our local electronic patent record.

Ongoing clinical supervision, refresher training, and access to expert advice via our clinical team leaders will support the development of sustained competence and adherence to best practice standards.

3. Integration into Clinical Practice

Purpose T will be integrated into electronic patient records and nursing documentation, promoting standardised assessments and enabling audit of compliance. Its use will be embedded into multidisciplinary team (MDT) working, especially during routine bedside reviews, to support holistic and anticipatory care planning.

Clear guidance, including standard operating procedures and quick-reference tools, will be developed to support staff in the consistent application of the tool across all relevant clinical settings.

4. Patient and Family Engagement

In line with national policy on shared decision-making and personalised care (NHS England, 2022), patients and families will be informed of the Purpose T process and its role in promoting comfort and dignity during the final stages of life.

5. Monitoring, Evaluation, and Continuous Improvement

Compliance with Purpose T will be audited quarterly, with metrics including incidence of pressure ulcers in palliative care settings and quality of documentation. Data will be triangulated with incident reports and patient feedback to identify trends and inform targeted improvements.

Outcomes will also be reported via the CCSG and in the future Quality Account, reflecting our commitment to transparency and high-quality care.

This initiative supports our strategic quality priorities around safe, effective, and compassionate care, and aligns with national patient safety goals. Its implementation demonstrates our dedication to improving the end-of-life experience for patients by preventing unnecessary suffering and ensuring dignity in care.

Other plans for the future

We are fully committed to the provision of safe, caring, responsive, effective and well-led services at Teesside Hospice. The Hospice has a well-established clinical and corporate governance structure, with Trustees playing an active part in ensuring that Teesside Hospice fulfils its mission, according to its charitable objectives and in ensuring that the organisation remains responsible and compliant in all areas of regulation, health and safety, employment law and other relevant legislation. Our plans for the future involve widening access to ensure our services are accessible to the whole community as we understand there are inequalities in accessing palliative and end of life care for minority groups. We aim for further collaboration with the wider system to expand our reach.

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TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Auditors

The auditors, Waltons Business Advisers Limited have indicated its willingness to continue in office.

Statement of Trustees’ responsibilities

The charity Trustees (who are also the directors of Teesside Hospice Care Foundation for the purpose of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice and applicable law and regulations.

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 group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and the group for that period.

In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently,

• observe the methods and principles in the Charities SORP (FRS 102),

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) 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 are sufficient to show and explain the charity and the group’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and which 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 steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management.

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.

Page 12

TEESSIDE HOSPICE CARE FOUNDATION

DIRECTORS’ AND TRUSTEES’ REPORT

For the year ended 31 March 2025

Statement as to disclosure of information to auditors

In so far as the Trustees are aware

• there is no relevant audit information of which the charitable company’s auditors are unaware, and

• the Trustees have all taken steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

This report was approved by the Trustees on ……………………………… and signed on its behalf by

Trustee

Page 13

INDEPENDENT AUDITORS’ REPORT TO THE INDEPENDENT MEMBERS OF TEESSIDE HOSPICE CARE FOUNDATION FOR THE YEAR ENDING 31 MARCH 2025

Unqualified Opinion

We have audited the financial statements of Teesside Hospice Care Foundation (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 March 2025 and of the charity'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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 the 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 annual report other than the financial statements and our auditors' 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.

Page 14

INDEPENDENT AUDITORS’ REPORT TO THE INDEPENDENT MEMBERS OF TEESSIDE HOSPICE CARE FOUNDATION FOR THE YEAR ENDING 31 MARCH 2025

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 including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' report and the Strategic 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report.

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

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

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 groups 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.

Auditors' responsibilities for the audit of the financial statements

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

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

We gained an understanding of the legal and regulatory framework applicable to the charity and the area in which it operates, and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Page 15

INDEPENDENT AUDITORS’ REPORT TO THE INDEPENDENT MEMBERS OF TEESSIDE HOSPICE CARE FOUNDATION FOR THE YEAR ENDING 31 MARCH 2025

We identified the greatest potential for fraud in the following areas: existence and timing of recognition of income and the posting of unusual journals. We discussed these risks with management and designed audit procedures as follows:

• to test the timing and existence of revenue,

• to review journals posted to key control accounts or posted around the year end, to look for potential “window dressing” as well as looking at a sample throughout the year.

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 auditors' 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 auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Waltons Business Advisers Limited

Chartered Accountants Statutory Auditors Maritime House Harbour Walk The Marina Hartlepool TS24 0UX

Date: 23/09/2025

Page 16

TEESSIDE HOSPICE CARE FOUNDATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT)

For the year ended 31 March 2025

Note Income: Donations and legacies 2 Charitable activities 3 Other trading activities 4 Investments 6 Other income 7 Total income Expenditure: Raising funds: other trading activities 8 Charitable activities 9 Total expenditure Net income/(expenditure) before other gains/losses Net gain/(loss) on investments Net income/(expenditure) Gross transfers between funds Net movement in funds for the year Reconciliation of funds: Total funds brought forward Total funds carried forward 29/30	2025 Unrestricted funds £ 1,890,084 1,613,695 2,030,869 243,228 108	2025 Restricted Funds £ 81,978 143,319 475 - -	2025 Total £ 1,972,062 1,757,014 2,031,344 243,228 108
	5,777,984	225,772	6,003,756
	2,399,712 3,586,299	205,640	2,399,712 3,791,939
	5,986,011	205,640	6,191,651
	9,510,724	546,478	10,057,202
	9,375,648	562,544	9,938,192

The statement of financial activities includes all gains and losses recognised in the year.

All of the above amounts relate to continuing activities.

Page 17

TEESSIDE HOSPICE CARE FOUNDATION

Company number 01642201 Registered Charity Number 512875

CONSOLIDATED AND CHARITY BALANCE SHEETS AT 31 MARCH 2025

		Group	Group	Charity	Charity
		2025	2024	2025	2024
	Note	£	£	£	£
Fixed assets
Tangible assets	18/19	1,537,913	1,453,013	1,492,439	1,445,787
Investments	20	4,529,707	4,320,382	4,529,709	4,320,384
		6,067,620	5,773,395	6,022,148	5,766,171
Current assets
Stocks	21	53,233	63,188	1,269	2,584
Debtors	22	514,584	573,765	571,910	547,917
Short term investments	23	1,922,665	3,100,537	1,922,665	3,100,537
Cash at bank and in hand		1,834,564	985,658	1,613,870	888,375
		4,325,046	4,723,148	4,109,714	4,539,413
Creditors: amounts falling due within one
year	24	(451,237)	(435,979)	(278,008)	(294,563)
Net current assets		3,873,809	4,287,169	3,831,706	4,244,850
Total assets less current liabilities		9,941,429	10,060,564	9,853,853	10,011,021
Creditors: amounts falling due after more
than one year	25	(3,237)	(3,362)	-	-
Net assets		9,938,192	10,057,202	9,853,853	10,011,021
The funds of the charity
Unrestricted funds	29	9,375,648	9,510,724	9,291,309	9,464,543
Restricted funds	30	562,544	546,478	562,544	546,478
Total charity funds	27	9,938,192	10,057,202	9,853,853	10,011,021

A separate Statement of Financial Activities for the Charity as an individual entity is not presented because the Charity has taken advantage of the exemption offered by Section 408 of the Charities Act 2006. The net incoming resources before gains and losses for the year for the Charity was a £226,054 deficit (2024: £632,651 surplus)

The financial statements were approved by the Board of Directors and authorised for issue on …………………………….. and signed on their behalf by:

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TEESSIDE HOSPICE CARE FOUNDATION

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 March 2025

Note Net cash flows from operating activities 32 Cash flows from investing activities Income from UK listed investments Income from other investment assets Interest received Purchase of property, plant and equipment Proceeds from sale of fixed assets Proceeds from sale of investments Purchase of financial investments Acquisition of Investment Property Decrease in cash held in investment portfolio Net cash (used in) investing activities Increase in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Total cash and cash equivalents at the end of the year Relating to: Cash at bank and in hand Short term investments Total cash and cash equivalents at the end of the year	2025 £ (263,238) 87,963 6,300 148,964 (168,516) 741,665 (716,573) (169,950)	2024 £ 352,256 91,946 6,300 121,969 (60,947) 564 758,668 (752,329)
	(70,147) 4,419	166,171 14,943
	(65,728)	181,114
	(328,966) 4,086,195	533,370 3,552,825
	3,757,229	4,086,195
	1,834,564 1,922,665	985,658 3,100,537
	3,757,229	4,086,195

The accompanying accounting policies and notes form an integral part of these financial statements.

Page 19

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

1 ACCOUNTING POLICIES

\

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.

BASIS OF ACCOUNTING

Teesside Hospice Care Foundation is a charitable company, limited by guarantee, registered in England. The address of the charity’s registered office and principal place of business is 1 Northgate Road, Linthorpe, Middlesbrough, TS5 5NW.

Teesside Hospice Care Foundation meets the definition of a public benefit entity under FRS 102. The charity exists for the benefit of the public through the provision of hospice services to members of the public suffering from lifelimiting illnesses.

These 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) (effective 1 January 2019) – (Charities SORP (FRS 102)), and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost of transaction value except for investments which are included at market value, and in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ effective 1 January 2019 (Charities SORP (FRS 102)) and the Companies Act 2006.

REDUCED DISCLOSURE OPTIONS

In accordance with FRS102, the Charity has taken advantage of the exemptions from the following disclosure requirements:

• Section 7 Statement of Cash Flows – presentation of a statement of cash flow and related notes and disclosures in relation to the Charity’s own statement of cash flows. A consolidated statement of cash flows is presented in these financial statements.

GOING CONCERN

FRS 102 requires that, if appropriate, the charity’s and group’s financial statements are prepared on the going concern basis, which means that the organisation is able to operate for the foreseeable future on the basis of known and reasonable projected resources. There are no material uncertainties in respect of the charity’s and group’s ability to continue as a going concern.

All areas within the organisation are constantly tasked with increasing cost-effectiveness and increasing self-generated revenue. The 2025/26 budget, and subsequent 2 year Budgets in the 3 year Budgeting process have been produced with line by line scrutiny. Measures are in place to ensure the financial position of the organisation is under constant review. The ongoing demand for services provided by the group ensures that the exposure to risk from the current difficult economic conditions is mitigated. The Trustees have prepared profit and loss forecasts and cash flow forecasts for the following 12 months and have reviewed the group’s resources. Reserves are available to meet the group’s needs as they arise as detailed in the reserves policy.

As a consequence, the Trustees believe the group is well placed to manage its business risks successfully and have a reasonable expectation that the charity and group have adequate reserves to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 20

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

BASIS OF CONSOLIDATION

The financial statements consolidate the results of the charity and its wholly owned subsidiary undertaking, Teesside Hospice (Trading) Limited, on a line-by-line basis. All financial statements are made up to 31 March 2025, and consistent accounting policies are used.

A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

INCOME

Income is recognised in the statement of financial activities 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. The following policies are applied to particular categories of income:

Donations and legacies are received by way of grants, donations, legacies and gifts and are recognised where there is entitlement, receipt is probable, and the amount can be measured with sufficient reliability.

Legacies are included when the charitable company is advised by the personal representatives of an estate, whereby probate has been granted, and that payment will be made, or property transferred provided that sufficient information has been received to enable valuation of the charity’s entitlement and hence the amount involved can be quantified.

Gifts in kind, which include donated drugs and dressings, is included as income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. The amount included in note 3 is £48,512 (2024: £47,244) of which £33,448 was drugs and dressings purchased then recharged to the ICB and £15,487 was the value of donated drugs and dressings. No income is recognised where there is no financial cost borne by a third party.

Income from charitable activities also include fees and grants received for services within contracts for operational programmes, and the income is recognised in the period in which it is receivable

Income from investments is included in the year in which it is receivable.

Income generated by the charitable company’s sole subsidiary, is included within other trading activities income, and is included in the period in which the income is receivable. The charity lets a non-investment property to the trading subsidiary in furtherance of the charity’s objects. Rental/service charge income and expenditure is removed on consolidation. The group also operates a donor procurement and management recharge agreement in relation to Retail Gift Aid donors. The income and expenditure is removed on consolidation.

Government grant income is recognised in the statement of financial activities when the group 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. Where a grant is receivable as compensation for costs already incurred or for immediate financial support, with no future related costs, the grant is recognised as income in the period in which it is receivable.

Gifts donated for resale are included as income when they are sold. The Trustees acknowledge that they are assets of the Charity as soon as received but due to the fact that a very large number of small value items are received, the time and cost of valuing donated goods at receipt would outweigh any benefit (of having them valued) to the users of the financial statements. Where goods are donated under the Gift Aid scheme the Charity is not entitled to the income until the goods are sold and the donor has confirmed that they are gifting the proceeds. In this case the income is included as a donation rather than a sale.

Page 21

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

RESOURCES EXPENDED

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is included in the Statement of Financial Activities on an accruals basis inclusive of any VAT which cannot be fully recovered.

Costs of raising funds are those incurred in attracting voluntary income, and the costs of the trading subsidiary for fundraising purposes.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries, and includes both the direct costs and support costs relating to these activities and an apportionment of support and governance costs.

Certain expenditure is directly attributable to specific activities and have been included in these categories. Certain other support costs, which are attributable to more than one activity, are apportioned across costs categories using methods including floor space, activity and headcount.

OPERATING LEASE AGREEMENTS

The group as a lessee

The charity classifies the lease of properties as operating leases. Rental charges are charged to the statement of financial activities on a straight-line basis of the period of the lease.

The group as lessor

Rental income from assets leased under operating leases in recognised on a straight-line basis over the term of the lease.

FUNDS ACCOUNTING - The funds held by the charity are:

Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

Designated funds – these are funds that comprise general funds that have been set aside at the discretion of the trustees for specific purposes. The purpose and use of these designated funds is set out in the notes to the financial statements.

Restricted funds – these are funds that can only be used for funds within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost and subsequently measured at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

useful life, as follows:
Freehold buildings	-	Straight line over forty years
Freehold land	-	Nil
Leasehold improvements	-	Straight line over the term of the lease
Computer equipment	-	33% straight line
Fixtures, fittings and equipment	-	15%-25% straight line
Motor vehicles	-	25% straight line

INVESTMENTS

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. Interests in subsidiaries are assessed for impairment at each reporting date. Any impairment losses or reversals of impairment losses are recognised immediately in income and expenditure.

Page 22

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

Fixed asset investments held in the form of shares or securities are included at mid-market value at the balance sheet date. Realised gains and losses on investments are calculated as difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the SOFA in the year of disposal. Unrealised gains and losses represent the movement in the market values during the year and are credited to the statement or charged to the SOFA based on market value at the year end. Fixed asset investment property is measured at fair value whilst a reliable measure of fair value is available without undue cost or effort. Changes in fair value are recognised in the SOFA.

Short term investments are deposits held in fixed term bank accounts on which penalties would be incurred if funds were withdrawn before maturity.

STOCK

Stock is valued at the lower of cost and net realisable value. Items donated for resale are included in the financial statements when they are sold.

DEBTORS

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

CASH AT BANK AND IN HAND

Cash at bank and cash in hand includes cash held at bank and cash held in short term investments.

CREDITORS AND PROVISIONS

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

FINANCIAL INSTRUMENTS

The charity has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues” of FRS 102, in full to all of its financial instruments. All of the charities financial assets and financial liabilities qualify as basis financial instruments. Basic Financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Financial assets: Trade and other debtors

Trade, group and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.

Financial liabilities: Trade and other creditors

Trade, group and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

DEFERRED TAXATION

Deferred tax is recognised in respect of all timing differences that have originated but not resolved at the balance sheet date where transactions or events have occurred at that date will result in an obligation to pay more, or a right to pay less or to receive more tax with the following exceptions:

Page 23

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be capitalised as an intangible fixed asset or a tangible fixed asset .

Employees are entitled to carry forward unused holiday entitlement at the reporting date. The cost of any unused entitlement is recognised in the period in which the employee’s services are received.

Provision for termination benefits are recognised only when the company is demonstrably committed to terminate the employment of an employee, or a group of employees, before their normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

RETIREMENT BENEFITS

Multi-Employer Plan

The charitable company’s clinical staff are eligible to contribute to the NHS pension scheme, a career average scheme. Contributions are made by both the employer and the employee. The pension scheme is a multi-employer scheme. The charitable company is unable to identify its share of the underlying assets and liabilities of the scheme; the scheme is therefore accounted for as a defined contribution scheme in accordance with FRS102. Contributions are recognised as income and expenditure in the period to which they relate as there is insufficient information available to use defined benefit accounting.

Where applicable, a liability is recognised for contributions arising from an agreement with the multi-employer plan that determines how the charity will fund a deficit. Contributions are discounted when they are not expected to be settled wholly within 12 months of the period end.

Defined contribution plan

The charitable company also contributes to the personal pension scheme of certain other employees. The pensions costs charged in the financial statements represent the contribution payable by the charitable company during the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical areas of judgement

In categorising leases as finance leases or operating leases, management makes judgments as to whether significant risks and rewards of ownership have transferred to the charity as lessees, or the lessee, where the Charity is lessor.

Legacy recognition - legacies are recognised on a case by case basis after considering whether probate has been granted, and when the executor of the estate has communicated in writing both the amount and settlement date and hence there is sufficient information received to be able to value the charity’s entitlement.

Page 24

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

2

3

For the year ended 31 March 2025

DONATIONS AND LEGACIES

General donations Sponsored events ‘In Memory’ donations Placements/teaching Retail sales applicable for Gift Aid Gift Aid on retail Grants and trusts received Legacies 2024 total	Unrestricted funds £ 309,850 305,755 112,560 8,854 365,339 91,395 38,116 658,215	Restricted funds £ 9,151 - - - - - 72,827 -	2025 Total £ 319,001 305,755 112,560 8,854 365,339 91,395 110,943 658,215	2024 Total £ 305,390 298,653 131,224 4,607 340,020 85,048 154,530 897,145
	1,890,084	81,978	1,972,062	2,216,617
	2,086,596	130,021	2,216,617

Teesside Hospice has an established team of volunteers who offer their free time to the organisation. In accordance with FRS 102 and the Charities SORP (FRS 102) Section 6, the economic contribution of general volunteers is not recognised in the accounts in the absence of a reliable measurement basis. The current headcount approximately 375

INCOME FROM CHARITABLE ACTIVITIES

4

North East and North Cumbria ICB Drugs from ICB and Acute Trust Lymphoedema clinic Other ICB recharges Hospice UK Grant 2024 total OTHER TRADING ACTIVITIES Retail sales Local authority grant funding Fundraising Lottery Catering/coffee shop	Unrestricted funds £ 804,295 48,512 684,138 76,250 500	Restricted funds £ - - 67,915 - 75,404	2025 Total £ 804,295 48,512 752,053 76,250 75,904	2024 Total £ 768,475 47,244 727,543 74,101
	1,613,695	143,319	1,757,014	1,617,363
	1,551,997	65,366	1,617,363	2024 Total £ 1,143,836 267,121 654,667 58,911
	Unrestricted funds £ 1,122,960 4,000 220,536 610,449 72,924	Restricted funds £ - - 475 - -	2025 Total £ 1,122,960 4,000 221,011 610,449 72,924
	2,030,869	475	2,031,344	2,124,535

OTHER TRADING ACTIVITIES

Of the income from other trading activities in 2024 £2,121,478 related to unrestricted funds and £3,057 to restricted funds.

Page 25

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

5 TRADING SUBSIDIARY

The charity controls the company listed below by virtue of holding a controlling interest in the equity share capital:

		% of equity
Name of subsidiary	Country of incorporation	share capital held
Teesside Hospice (Trading) Limited	England and Wales	100

Teesside Hospice Group consists of two companies. The holding company is Teesside Hospice Care Foundation (Limited by Guarantee) and its 100% subsidiary is Teesside Hospice (Trading) Limited.

The subsidiary company, Teesside Hospice (Trading) Limited is incorporated in England & Wales and undertakes trading and fundraising activities. Company Number of Teesside Hospice (Trading) Limited is 02265205. Taxable profits from this company are donated to the Hospice by Gift Aid, a fact which is referred to in the trading company’s publicity material. The activities of the subsidiary have been consolidated on a line by line basis in the SOFA.

Two members of the charity’s Board of Trustees plus two members of the Senior Management Team sit are Directors of the subsidiary.

The trading results of the subsidiary, as extracted from the audited financial statements, are summarised as follows:

6

Turnover Total expenditure Other income Taxation (deferred tax credit - reversal of timing differences) Profit after tax for the year The assets and liabilities of Teesside Hospice (Trading) Limited Assets Liabilities Total net assets INVESTMENTS Income from UK investment properties Income from UK listed investments Bank interest receivable	were: Unrestricted funds £ 6,300 87,964 148,964	2025 £ 1,733,409 (1,699,806) 355,499	2024 £ 1,798,503 (1,643,555) 309,326 -
		389,102	464,274
		2025 £ 507,500 (423,159)	2024 £ 214,154 (167,971)
		84,341	46,183
		2025 Total £ 6,300 87,964 148,964	2024 Total £ 6,300 91,946 121,969
	243,228	243,228	220,215

The investments income in 2024 all related to unrestricted funds.

Page 26

TEESSIDE HOSPICE CARE FOUNDATION

7

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

OTHER INCOME

8

9

OTHER INCOME	OTHER INCOME
Unrestricted funds £ Sundry income 108 Profit on disposal of assets 108 The other income in 2024 all related to unrestricted funds. RAISING FUNDS: COMMERCIAL TRADING ACTIVITY Unrestricted Funds Restricted funds £ £ Wages & salaries 1,277,186 - Other costs 1,088,452 - Depreciation 4,661 - Investment management fees 29,413 - 2,399,712 2024 total 2,285,750 10,450		Unrestricted funds £ 108	2025 Total £ 108	2024 Total £ 81 564
		108	108	645
			2025 Total £ 1,277,186 1,088,452 4,661 29,413	2024 Total £ 1,193,693 1,075,583 9,968 18,956
	2,399,712		2,399,712	2,296,200
	2,285,750	10,450	2,296,200

RAISING FUNDS: COMMERCIAL TRADING ACTIVITY

COSTS OF CHARITABLE ACTIVITIES – BY FUND TYPE

I P U Wellbeing & Lymphoedema Bereavement Counselling 2024 total COSTS OF CHARITABLE ACTIVITIES – I P U Wellbeing & Lymphoedema Bereavement Counselling 2024 total	Unrestricted funds £ 2,164,247 1,200,240 221,812	Restricted funds £ 93,929 98,267 13,444	2025 Total £ 2,258,176 1,298,507 235,256	2024 Total £ 1,956,743 1,090,643 214,182
	3,586,299	205,640	3,791,939	3,261,568
	3,075,706	185,862	3,261,568	2024 Total £ 1,956,743 1,090,643 214,182
			2025 Total £ 2,258,176 1,298,507 235,256 3,791,939
				3,261,568
	2,451,589		3,261,568

COSTS OF CHARITABLE ACTIVITIES – BY ACTIVITY

10

Page 27

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

11

ANALYSIS OF DIRECT AND SUPPORT COSTS

DIRECT COSTS Staff costs Establishment Computer / Equip / IT Costs Drugs and dressings Cleaning Supplies Volunteer costs Uniforms Counselling resources General expenses Depreciation 2024 total SUPPORT COSTS Staff costs Training and HR Cleaning supplies Establishment Costs Computer / Equipment/IT costs Kitchen supplies Uniforms General expenses Depreciation Irrecoverable VAT Governance costs 2024 total	IPU £ 1,500,802 54,258 8,768 87,754 8,966 1,015 1,766 - 2,268 47,430	Wellbeing and Lymph- oedema £ 559,224 4,139 3,777 402,293 2,989 53 538 - 5,414 -	Wellbeing and Lymph- oedema £ 559,224 4,139 3,777 402,293 2,989 53 538 - 5,414 -	Bereavement Counselling £ 134,912 - 943 - - - 888 2,009 290 -	Bereavement Counselling £ 134,912 - 943 - - - 888 2,009 290 -	2025 Total £ 2,194,938 58,397 13,488 490,047 11,955 1,068 3,192 2,009 7,972 47,430	2025 Total £ 2,194,938 58,397 13,488 490,047 11,955 1,068 3,192 2,009 7,972 47,430	2024 Total £ 1,937,578 27,090 418,234 11,301 1,968 1,666 900 4,302 48,550
	1,713,027	978,427		139,042		2,830,496		2,451,589
	1,515,475	816,212		119,902		2,451,589		2024 Total £ 492,239 25,079 16,824 181,087 - 28,345 203 30,136 24,193 1,060 10,813 809,979
	IPU 298,529 38,212 13,193 79,407 32,899 31,647 121 23,904 18,148 836 8,253					2025 Total £ 576,305 59,203 18,966 138,722 51,531 31,647 188 37,309 31,526 3,344 12,882
	545,149	320,080	96,214			961,443
	441,268	274,431	94,280			809,979

Support costs have been allocated using varying methods as described in resources expended on page 20

Page 28

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

12

GOVERNANCE COSTS Auditor remuneration Internal audit Legal and professional fees The governance costs in 2024 all related to unrestricted funds.	Unrestricted Funds £ 10,281 2,567 34	2025 Total £ 10,281 2,567 34	2024 Total £ 9,050 1,600 163 10,813
	12,882	12,882

13

NET INCOMING RESOURCES FOR THE YEAR

NET INCOMING RESOURCES FOR THE YEAR
	2025	2024
	£	£
Net incoming resources for the year are stated after charging:
Auditor’s remuneration	14,997	13,035
Non audit services	215	560
Depreciation of owned fixed assets	83,617	82,711
Profit on disposal of assets		(564)
Operating lease rentals – land and buildings	241,012	217,935

14 ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND COST OF KEY MANAGEMENT PERSONNEL

Wages and salaries Social security costs Pension costs Termination payments Salaries paid via service level agreements	Costs of raising funds £ 1,144,580 90,688 35,018 6,900 1,277,186	Charitable expenditure £ 2,329,242 201,851 161,046 2,537 76,567 2,771,243	2025 Total £ 3,473,822 292,539 196,064 2,537 83,467 4,048,429	2024 Total £ 3,092,379 245,484 224,512 8,989 52,146
				3,623,510

Employees’ emoluments

The number of employees who earned more than £60,000 excluding company pension and national insurance contributions during the year was as follows:

£90,000 to £99,999 £80,000 to £89,999 £60,000 to £69,999	2025 2024 Number Number 1 - 1 - 1

Page 29

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

15 STAFF NUMBERS

The number of higher paid employees accruing pension benefit was:

Defined contribution scheme – salary sacrifice arrangement	2025 2024 Number Number - 2

Pension contributions paid in the year in respect of the above staff was £0 (2024: £7,250).

Key management personnel

The key management personnel of the group comprise those of the charity and the key management personnel of its wholly owned subsidiary Teesside Hospice (Trading) Limited. The total employee benefits of the key management personnel of the group were £429,878 (2024: £395,098).

Trustees’ remuneration

The Trustees received no remuneration during the year (2024: £nil) and no Trustee individually received payment for professional or other services supplied to the charity (2024: £nil).

The aggregate amount of expenses reimbursed to the Trustees for the year was £nil (2024: £nil). The number of persons reimbursed was 0 (2024: 0).

The average monthly numbers of employees during the year, was as follows:

Hospice services IPU Medical Wellbeing Administration Kitchen Cleaning Bereavement AHP Establishment Lymphoedema Income generation	2025 Number (Headcount) 29 7 6 19 5 6 4 4 4 12	2025 Number (FTE) 24 4 4 13 3 4 2 2 3 7	2024 Number (Headcount) 29 6 6 18 5 6 4 4 3 10	2024 Number (FTE) 24 3 4 13 3 4 2 2 3 6
	96 53	66 41	91 52	64 41
	149	107	143	105

On average 17 bank staff are used per month.

Page 30

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

16 TAXATION

The Hospice is recharged by South Tees Hospitals NHS Foundation Trust for the salaries of employees as follows:

AHP

2025	2024
Number	Number
3	2

The company is a registered charity and is exempt from tax on income and gains falling within sections 466 to 493 of the Corporation Tax Act 2010 or section 256 of the Taxable Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

The trading subsidiary is liable to corporation tax on their taxable profits. Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

17 FINANCIAL PERFORMANCE OF THE CHARITY

A separate Statement of Financial Activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemption afforded by Section 408 of the Companies Act 2006. The net incoming resources/ before gains and loss for the year for the charity was (£226,053) deficit, (2024: £632,651 profit).

18 TANGIBLE FIXED ASSETS – GROUP

Cost At 1 April 2024 Additions Disposals At 31 March 2025 Depreciation At 1 April 2024 Charge for the year Disposals At 31 March 2025 Net book values At 31 March 2025 At 31 March 2024	Freehold buildings £ 2,358,751 - -	Leasehold improvements £ 36,418	Freehold land £ 556,439 - -	Fixtures, fittings and equipment £ 260,326 132,099 (26,086)	Total £ 3,175,516 168,517 (26,086) 3,317,947 1,722,503 83,617 (26,086) 1,780,034 1,537,913 1,453,013
	2,358,751	36,418 - -	556,439	366,339 185,730 25,519 (26,086)
	1,536,773 58,098 -		- - -
	1,594,871	- 36,418 -	-	185,163
	763,880		556,439 556,439	181,176
	821,978			74,596

Page 31

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

19 TANGIBLE FIXED ASSETS – CHARITY

20

Freehold buildings Freehold land Fixtures, fittings and equipment £ £ £ Cost At 1 April 2024 2,358,751 556,439 207,621 Additions - - 125,608 Disposals - - (26,086) At 31 March 2025 2,358,751 556,439 307,143 Depreciation At 1 April 2024 1,536,773 - 140,251 Charge for the year 58,098 - 20,858 Disposals - - (26,086) At 31 March 2025 1,594,871 - 135,023 Net book values At 31 March 2025 763,880 556,439 172,120 At 31 March 2024 821,978 556,439 67,370 FIXED ASSET INVESTMENT – GROUP AND CHARITY Listed investments Investment property Cash held as part of the investment portfolio £ £ £ Valuation At 1 April 2024 4,117,401 120,000 82,981 Additions 716,573 169,950 741,665 Disposals (741,665) - (746,083) Unrealised gain on revaluation of investments 68,885 - - At 31 March 2025 4,161,194 289,950 78,563 Historical cost as at 31 March 2025 3,535,734 92,500 78,563	Freehold buildings £ 2,358,751 - -	Freehold land £ 556,439 - -	Fixtures, fittings and equipment £ 207,621 125,608 (26,086)	Fixtures, fittings and equipment £ 207,621 125,608 (26,086)		Total £ 3,122,811 125,608 (26,086) 3,222,333 1,677,024 78,956 (26,086) 1,729,894 1,492,439 1,445,787 Total £ 4,320,382 1,628,188 (1,487,748) 68,885
	2,358,751	556,439		307,143
	1,536,773 58,098 -			140,251 20,858 (26,086)
	1,594,871			135,023
	763,880			172,120
	821,978			67,370
						4,529,707
						3,706,797

In addition to the above, the charitable company holds a £2 investment in the share capital of Teesside Hospice (Trading) Limited.

All fixed asset investments are held within the United Kingdom.

The investment property was professionally revalued as at 31 March 2025 by Browns Estate Agency Limited, Chartered Surveyors, on an open market basis. The investment property was also valued at 31 March 2024. There has been no change in valuation in the year. Browns Estate Agency Limited are not connected with the group. The property has three restrictions attached which are in existence during the donor’s lifetime: 1. it will not be occupied by more than two adults; 2. There will be no pets and 3. It will not be sold without the donor’s consent.

During the year a further investment property was gifted to the charity as part of a legacy. The market value on acquisition in February 2025 was £169,950.

Page 32

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

21 STOCKS Group 2025 Group 2024 £ £ Stocks 53,233 63,188 22 DEBTORS Group 2025 Group 2024 £ £ Trade debtors 33,157 197,920 Amounts due from subsidiary undertaking - - Other debtors 29,717 19,234 VAT receivable 74,122 27,180 Prepayments and accrued income 377,588 329,431 514,583 573,765 23 SHORT TERM INVESTMENTS Group 2025 Group 2024 £ £ Cash equivalents on deposit 1,922,665 3,100,537 24 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2025 Group 2024 £ £ Trade creditors 172,225 181,151 Amounts due to subsidiary undertaking - - Other tax and social security 66,327 58,701 Other creditors 40,613 38,356 Accruals and deferred income 172,072 155,771 451,237 435,979 Deferred income Group 2025 Group 2024 £ £ Deferred income brought forward 83,320 92,996 Resources deferred in the year 73,120 83,320 Amounts released from previous year (83,320) (92,996) Deferred income carried forward 73,120 83,320	21 STOCKS Group 2025 Group 2024 £ £ Stocks 53,233 63,188 22 DEBTORS Group 2025 Group 2024 £ £ Trade debtors 33,157 197,920 Amounts due from subsidiary undertaking - - Other debtors 29,717 19,234 VAT receivable 74,122 27,180 Prepayments and accrued income 377,588 329,431 514,583 573,765 23 SHORT TERM INVESTMENTS Group 2025 Group 2024 £ £ Cash equivalents on deposit 1,922,665 3,100,537 24 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2025 Group 2024 £ £ Trade creditors 172,225 181,151 Amounts due to subsidiary undertaking - - Other tax and social security 66,327 58,701 Other creditors 40,613 38,356 Accruals and deferred income 172,072 155,771 451,237 435,979 Deferred income Group 2025 Group 2024 £ £ Deferred income brought forward 83,320 92,996 Resources deferred in the year 73,120 83,320 Amounts released from previous year (83,320) (92,996) Deferred income carried forward 73,120 83,320	Group 2025 £ 53,233	Group 2025 £ 53,233	Group 2024 £ 63,188	Group 2024 £ 63,188	Charity 2025 £ 1,269	Charity 2024 £ 2,584 Charity 2024 £ 197,920 - 10,655 40,965 298,377 547,917 Charity 2024 £ 3,100,537 Charity 2024 £ 147,955 9,408 58,701 29,721 48,778
		Group 2025 £ 33,157 - 29,717 74,122 377,588		Group 2024 £ 197,920 - 19,234 27,180 329,431		Charity 2025 £ 33,157 102,674 22,216 90,109 323,754
		514,583		573,765		571,910
		Group 2025 £ 1,922,665		Group 2024 £ 3,100,537		Charity 2025 £ 1,922,665
						Charity 2025 £ 110,009 - 66,327 31,646 70,026 278,008 Charity 2025 £ 9,025 500 (9,025) 500
	451,237		435,979				294,563
	Group 2025 £ 83,320 73,120 (83,320)		Group 2024 £ 92,996 83,320 (92,996)				Charity 2024 £ 13,830 9,025 (13,830)
	73,120		83,320				9,025

Page 33

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

Deferred income in the group includes £72,620 in respect of lottery membership payments paid in advance for future draws/donations.

25 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Lease liabilities	Group 2025 £ 3,237	Group 2024 £ 3,362	Charity 2025 Charity 2024 £ £ - -

26 FINANCIAL INSTRUMENTS

Group 2025 £ FINANCIAL ASSETS Debt instruments measured at amortised cost: Trade debtors 33,157 Other debtors 22,216 Accrued income 234,404 TOTAL 289,777 FINANCIAL LIABILITIES Measured at amortised cost: Trade creditors 172,225 Other creditors 40,613 Accruals 98,952 Rent liabilities due after more than one year 3,238 TOTAL 315,028 27 ANALYSIS OF NET ASSETS BETWEEN FUNDS – GROUP Unrestricted funds £ Fund balances at 31 March 2025 represented by: Tangible fixed assets 1,003,284 Investment assets 4,529,707 Current assets 4,297,131 Current liabilities and provisions (454,474) 9,375,648 2024 total 9,510,724	Group 2024 £ 197,920 10,655 219,347 427,922 181,151 38,356 74,451 3,362 297,320 Restricted funds £ 534,629 - 27,915 562,544 546,478	Charity 2025 £ 33,157 22,216 234,404 289,777 110,009 31,646 69,526 - 211,181 Total funds 2025 £ 1,537,913 4,529,707 4,325,046 (454,474) 9,938,192 10,057,202	Charity 2024 £ 197,920 10,655 219,347 427,922 147,955 29,721 39,753 - 217,429 Total funds 2024 £ 1,453,013 4,320,382 4,723,148 (439,341) 10,057,202

Page 34

TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

ANALYSIS OF NET ASSETS BETWEEN FUNDS – CHARITY

Fund balances at 31 March 2025 represented by: Tangible fixed assets Investment assets Current assets Current liabilities and provisions 2024 total	Unrestricted funds £ 957,809 4,529,709 4,081,799 (278,008)	Restricted funds £ 534,629 - 27,915 562,544 546,478	Total funds 2025 £ 1,492,438 4,529,709 4,109,714 (278,008) 9,853,853 10,011,021	Total funds 2024 £ 1,445,787 4,320,384 4,539,413 (294,563) 10,011,021
	9,291,309
	9,464,543

28 RETIREMENT BENEFITS

The trading company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The contributions payable by the company charged to income and expenditure amounted to £22,993 (2024: £20,645)

The group also operates the same defined contribution pension scheme for employees of the charity and in addition, participates in a multi-employer pension plan, being the NHS Pension Scheme. The assets of the scheme are held separately from those of the charity in independently administered funds. Furthermore, the group participates in the Pensions Trust Growth Plan, Series 4, a defined contribution pension scheme.

Total pension contributions payable by the group charged to income and expenditure amounted to £196,064 (2024: £224,582). Pension costs have been allocated based on the member of staff to whom the cost relates and the department they work in. Total contributions for all three pension schemes totalling £31,645 (2024: £29,721) were payable to the fund at the year end and are included in creditors.

NHS Pension Scheme

The NHS Pension Scheme is an unfunded, multi-employer defined benefit scheme that covers NHS employers, General Practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable participating bodies to identify their share of the underlying Scheme assets and liabilities. Therefore, the Scheme is accounted for as if it were a defined contribution scheme: the cost to the charity of participating in the Scheme is taken as equal to the contributions payable to the Scheme for the accounting period.

At the balance sheet date there were 25 active members of the Scheme employed by the charity.

The Scheme is subject to a full actuarial valuation every four years, and an FRS102 accounting valuation every year. The most recent 2020 valuation identified the need to increase employer contributions. From 1 April 2024 the employer contribution rate was increased to 23.78% from 20.68% (including an administration levy of 0.08%). Employers will continue to pay at the rate of 14.38% with the balance of 9.4% being funded by government. The 2024 valuation will commence in 2025 and will determine the contribution rate for the four years from 1 April 2027.

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TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

29 UNRESTRICTED FUNDS – GROUP

For the year ended 31 March 2025

2024/25 General reserves Charity Non- charitable trading funds Total General reserves Designated property fund Designated deficits fund Designated digital fund 2023/24 General reserves Charity Non- charitable trading funds Total General reserves Designated property fund Designated deficits fund Designated digital fund	At 1 April 2024 £ 8,876,936 46,181	Incoming resources £ 3,689,076 2,088,908	Outgoing resources £ (4,218,397) (1,699,806)	Gains, losses & transfers £ 423,896 (350,945)	At 31 March 2025 £ 8,771,511 84,338 8,855,849 500,000 - 19,799 9,375,648 At 31 March 2024 £ 8,876,936 46,181 8,923,117 500,000 - 87,607 9,510,724
	8,923,117 500,000 - 87,607	5,777,984 - - -	(5,918,203) - - (67,808)	72,951 - - -
	9,510,724 At 1 April 2023 £ 7,528,917 57,225 7,586,142 500,000 400,000 150,000	5,777,984 Incoming resources £ 3,873,102 2,107,829	(5,986,011) Outgoing resources £ (3,663,864) (1,635,199)	72,951 Gains, losses & transfers £ 1,138,781 (483,674)
		5,980,931 - - -	(5,299,063) - - (62,393)	655,107 - (400,000) -
	8,636,142	5,980,931	(5,361,456)	255,107

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TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

UNRESTRICTED FUNDS – CHARITY ONLY

2024/25 General reserves Designated property fund Designated deficits fund Designated digital fund 2023/24 General reserves Designated property fund Designated deficits fund Designated digital fund	At 1 April 2024 £ 8,876,936 500,000 87,607		Incoming resources £ 4,059,219 - - -	Outgoing resources £ (4,237,597) - - (67,808) (4,305,405) Outgoing resources £ (3,683,064) - - (54,037) (3,737,101)	Gains, losses & transfers £ 72,951 - - -	At 31 March 2025 £ 8,771,509 500,000 - 19,799 9,291,308 At 31 March 2024 £ 8,876,936 500,000 87,607 9,464,543
			4,059,219 Incoming resources £ 4,367,620 - - -		72,951 Gains, losses & transfers £ 663,463 - (400,000) (8,356)
	8,578,917		4,367,620		255,107

General reserves

The general reserves represent the free funds of the charity which are not designated for any particular purpose.

Designated funds

In March 2021 Trustees agreed to designate £500,000 for the purchase of commercial property, further details of which are given in the reserves policy. Suitable premises have not yet been identified. The digital development of the organisation continues to be a priority. A technology budget plan has been produced by the Senior Management Team with the assistance of the IT service provider. In order to invest in improving our knowledge, capability and confidence a designated fund of £150,000 was established at 31 March 2023, a significant amount of this expenditure has now been utilised with the balance carried forward as at 31stMarch 2025 of £19,799

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TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

30 RESTRICTED FUNDS – GROUP AND CHARITY

2024/25 Building Fund North East and North Cumbria ICB Individual Supporters Grants & Trusts Patient Comfort Appeal Screwfix Foundation St James’s Place Charitable Foundation The John Horseman Trust Sir John Priestman Trust The Francis Winham Foundation Casper Shipping The Liz and Terry Bramble Foundation Hospice UK The National Lottery Community Fund	At 1 April 2024 £ 456,813 - 2,137 57,366 5,833 6,494 - - - - - - - 17,835 546,478	Incoming resources £ - 67,915 3.867 39,670 - - 1,916 10,000 5,000 5,000 5,000 12,000 75,404 -	Outgoing resources £ (31,409) (67,915) (4,585) (52,448) (5,833) (1,849) (1,916) (6,444) (5,000) (5,000) (5,000) (406) (17,835)	Gains, losses & transfers £ - - - (510) - - - (3,556) - - - - - -	At 31 March 2025 £ 425,404 - 1,419 44,078 - 4,645 - - - - - 12,000 74,998 - 562,544
		225,772	(205,640)	(4,066)

RESTRICTED FUNDS – GROUP AND CHARITY

2023/24 Building Fund North East and North Cumbria ICB Individual Supporters Grants & Trusts Edward Guy Foundation Patient Comfort Appeal Screwfix Foundation St James’s Place Charitable Foundation Woodsmith Foundation Tees Valley Business ERDF The National Lottery Community Fund	At 1 April 2023 £ 488,221 - 2,213 8,689 4,739 17,495 6,802 - 16,187 - - 544,346	Incoming resources £ - 65,366 4,798 65,657 - - - 25,983 7,089 10,230 19,321	Outgoing resources £ (31,408) (65,366) (4,874) (16,980) (4,739) (11,662) (308) (25,983) (23,276) (10,230) (1,486)	Gains, losses & transfers £ - - - - - - - - - - -	At 31 March 2024 £ 456,813 - 2,137 57,366 - 5,833 6,494 - - - 17,835 546,478
		198,444	(196,312)	-

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TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

31

For the year ended 31 March 2025

Name of restricted fund	Description, nature and purposes of the fund
Building fund	The building fund represents the net book value of the inpatient unit and annexed buildings. The fund is reduced by the depreciation charge on these fixed assets.
Northeast and North Cumbria ICB	From April 2018 the local ICB has funded a proportion of the Lymphoedema Clinic salaries.
Individual Supporters	During the year, individual supporters made donations specifically for the benefit of core clinical services. These monies were spent on wellbeing crafts and equipment, lymphoedema equipment, complementary therapies, bereavement resources and IPU purchases.
Grants & Trusts	Various grant providers supported the Hospice again this year. These grants supported the maintenance and purchase of new equipment, uniforms, bereavement counselling service provision, wellbeing services and website design. Twenty grants (of less than £10K) have a combined spend of £50,573 in the year. Of the balance of £13,987, two grants of at £4.500 are to be reduced by the depreciation charge on these assets and the remaining £9,487 is to be expended in 2025/26
The Liz and Terry Bramall Foundation	The Liz and Terry Bramall Foundation kindly contributed £12,000 to fund counselling hours from April 2025-March 2026
The Hospice UK Grant	The Hospice received it’s first tranche of the Hospice UK Grant of £74,404. This in line with guidance was utilised on capital expenditure within the year and will be reduced over the lifetime of the assets.
Screwfix Foundation	£6,802 was donated to install a car park barrier. Planning processes were passed in the year, with installation taking place in 2023/24. The fund is reduced by the depreciation charge on this fixed asset.

COMMITMENTS UNDER OPERATING LEASE COMMITMENTS

Group and charity

The group as a lessee:

The total future minimum lease payments under non-cancellable leases is set out below:

Operating leases which expire: Within 1 year Between 1 and 5 years Greater than 5 years	2025 Land and buildings £ 232,745 390,749 115,356	2024 Land and buildings £ 247,977 525,309 62,000 835,286
	738,850

The operating leases represent leases of premises. The leases are of varying terms.

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TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

Lease costs of £241,230 have been recognised as an expense in the year for the group and £260,430 for the trading subsidiary. The subsidiary leases part of 408/410 Linthorpe Road from the charity which is removed from the group accounts.

The charity as a lessor:

The total future minimum lease payments under non-cancellable leases is set out below:

Operating leases which expire: Within 1 year Between 1 and 5 years	2025 Land and buildings £ 24,700 24,000	2024 Land and buildings £ 19,200 19,200
	48,700	38,400

The operating lease represents the lease of premises from Teesside Hospice Care Foundation to its wholly owned subsidiary Teesside Hospice (Trading) Limited. The operating lease also includes the lease costs for Teesside Hospice (Trading) Limited- to lease the coffee shop from Teesside Hospice Care Foundation. This is a 7 year lease from the 1[st] May 2025 and is for an annual rent of £6000.

32 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net incoming movement in funds (Gain)/Loss on revaluation of investments Income from investments Interest receivable Depreciation Profit on disposal of assets Increase in stocks Decrease/(Increase) in debtors (Decrease)/Increase in creditors Net cash (outflow)/inflow from operating activities	2025 £ (119,012) (68,885) (94,263) (148,964) 83,617 - 9,955 59,181 15,133	2024 £ 876,714 (255,107) (98,246) (121,969) 82,711 (564) (6,804) (246,478) 121,999
	(263,238)	352,256

33 LEGAL STATUS OF THE CHARITY

Teesside Hospice Care Foundation is a company limited by guarantee and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

The Clinkard Group Limited

34 RELATED PARTY TRANSACTIONS

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TEESSIDE HOSPICE CARE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 March 2025

The group benefits from the kind support of The Clinkard Group Limited. Teesside Hospice Care Foundation and Teesside Hospice (Trading) Limited and The Clinkard Group Limited share a common co-opted director of the Trading Board T Payne. In the year ended 31 March 2025 £2,500 (2024: £1,500) was donated to assist fundraising activity.

HR Alchemy

J Davies business HR Alchemy kindly donated £4,280 to corporate fundraising in the year ended 31 March 2025 (2024: £2,385).

Middlesbrough College

D Modesto Lusardi is a governor at Middlesbrough College. The Hospice paid Middlesbrough College £70 in the year for an emergency first aid course.

Teesside Hospice (Trading) Limited

During the year, the charity engaged in the following transactions with the wholly owned trading subsidiary. At 31 March 2025 the unsecured amount owed by Teesside Hospice Care Foundation was £102,672

As at 1 April 2024 410 Linthorpe Road office Payroll Gift Aid covenant Gift Aided retail sales Donor management charges Amounts paid to incorrect bank Paid Transfer As at 31 March 2025	Lottery Future Credits Intercompany Account Total (61,000) 51,592 (9,408) - 63,838 63,838 - 837,151 837,151 - 350,945 350,945 - 365,339 365,339 - (421,669) (421,669) - (27,523) (27,523) - (1,056,001) (1,056,001) 1,932 (1,932) -
	(59,068) 161,740 102,672

Teesside Hospice (Trading) Limited operates the weekly lottery in which members pay in advance for future draws. The balance of £58,068 would be repayable at 31 March 2025 should the lottery cease. The funds have been remitted to Teesside Hospice Care Foundation in previous years. The above balance therefore represents the charity’s liability to lottery members at the year end.

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