OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

THE PRINCE WALES HOSPICE Care. Comt)assion. Communrty. Annual Review The exceptional care achieved together with our partners in 2022/23 Trustees, Report and Financial Statements Year ended 31 March 2023 Company N￿n￿e1.. 01797810. CharityNumber.' 514999

Thank you for your support The Hospice would like to thank everyone who supported our work in 2022/23 through donations, volunteering, joining in with events and so much more. Welcome to Inca

Contents Page 3: Our Vision, Mission and Values Page 4: Our Strategy and Progress Page 7: Fundraising Page 8: Retail Page 9: The Caring Kitchen Page 10. Our Care Page 11 . Wellbeing Page 12: Lymphoedema Page 13: Bereavement Services Page 14: Our Finances Page 16: Charity Information Page 18. Report of the Trustees Page 29.. Independent Auditor's Report Page 34: Consolidation Statement of FinanGial Activitie Page 36: Consolidation Balance Sheet Page 38: Company Balance Sheet Page 40: Consolidation Cash Flow Statement Page 42: Notes to Financial Statements

OUR VISION Our vision is to enable everyone in the community to live well and die well knowing their loved ones are supported. OUR MISSION We provide specialist care for adutts with a terminal diagnosis. We focus on the person and not just the illness, supporting them and those around them. OUR VALUES Loving Care and Dignity a•• Working Together

Above and Beyond Quality and Excellence

Our Previous Ambitions Grow and Diversify income generation streams Develop new outpatient and wellbeing services for patients and carers Loving Care Working Together Above and Beyond Quality and Excellence Eveyone in our community knows who we are and what we do De'ielop and enhance current inpatient and outpaticnt oervices to patients and carers Ensuring a sustainable organisation (Financial Planning, Workforce Planning, buildings, Quality) Develop new collaborative partnerships Meeting 'outstanding' CQC standards

Progress We Made Against Our Previous Strategic Ambitions: Become data-driven, able to make quick decisions based on up to date information and created time efficiencies by implementing IT software solutions Developed The Caring Kitchen commercial brand, working in an agile way, learning and testing with each new contract Adapted our fundraising programmes to respond to the changing socio-economic climate and maintained income levels within that Worked hard on positioning our retail shop offering to bring sales back to, and in some cases, improving on, pre-covid levels Invested in external marketing support to improve our digital messaging and extend our reach as well as to update and increase our photo and video stock Negotiated an annual uplift to the NHS core grant

Our New Strategic Ambitions 2023 - 2026 To have a fully staffed, competent and engaged workforce Tobea sustainable organisation To provide and facilitate Hospice quality care to more people in our community To provide quality internal and external service To have modern and up to date infrastructure to support our work

Fundraising We are extremely grateful for the amazing support from our communfty, who have helped us raise the funds needed to deliver specialist palliative care. Every donation we've received has had a significant impact on our cause, and we would like to share some of the ways your support has helped us.. Challenge eventers and community activities In 2022/23 637 incredible people ran, walked, cycled, abseiled, and much, much more, often in memory of a loved one. These energetic heroes and their friends and families raised over £201 ,8691 Gifts in wills The Hospice also remembers with gratitude, 12 generous supporters, who chose to write a gift to the Hospice in their will. Between them, these exceptional individuals gave over £1,798,255 in 2022/23. Appeal donors An amazing 1 ,072 people donated a fantastic total of over £64,350 to our major appeals, such as Light Up a Life or giving Gifts that Count at Christmas. Regular giving 356 understanding supporters gave over £47,596 through monthly, quartedy or annual regular gift agreements, which provide a stable and certain income throughout the year. Corporate partners 109 business raised over £118,414 through Club 5 membership, event and campaign sponsorship and lots of brilliant employees individual and team fundraising efforts. Charitable Grants 29 grants were given, by generous charitable tr￿tS and foundations, amounting to more than £114,165.

Retail Our shops have been firing on all cylinders, bouncing back to pre-pandemic success. This year, we put our heads together to streamline our ret&1 operations and work smarter, not harder. Our community rallied around us, donating to our shops and Sales from donated items: showing us incredible support. We're overflowing with gratitude for their generosity. £1,480,873 We welcomed 203,148 customers to our stores We prevented 623 tonnes of unwanted items going to landfill. 77,896 Bags donated QE t IfTP ALES Hosp

The Caring Kitchen The catering team at The Prince of Wales Hospice has been providing rutritious home cooked meals for patients ar)d carers during their stays at the Hospi￿ for more than 30 years. More recently, following some successful grant funding which allowed the Hospice to undertake a Gomplete refurbishment of its Catering faGility it was reGoJnised that there was potential to develop a commercial arm as a way to diversify income, which is essential, given the current economic climate in which the Hospice is operating. Our success so far: three course meal event serving 120 guests utilising hospice volunteers as waiting staff providing training day meals to local super league rugby club providing daily meals to children at a local nursery supplying small buffets and afternoon teas to local businesses catering for private parties BBQ for corporate events up to 600 people food offering at local community events 150 coronation teas served Nutritious meals provided daily to local nursery Corporate BBQ for 6CK) people

Our Care 93 13 patients discharged 255 people were admitted to Incare 13 patient bedrooms + 1 family room We have provided 24 hour care and support to 255 patients in our 13 patient bedrooms and 1 family room. At the heart of our mission is the provision of compassionate care and support to not only our patients but also their families. This principle is deeply ingrained in all of our healthcare professionals. Jo Benson, Nurse Manager

Wellbeing Our aim is to maximise the quality of people's life by optimising physical function and emotional wellbeing. Our care is holistic, looking after the whole person. Our experienced team includes Wellbeing Lead, Wellbeing coordinator, Wellbeing Support Worker, Social Worker, Complementary Therapy Lead and Physiotherapist. We spent the year finding out what our community needed and wanted from the Hospice and launched our new wellbeing programme at the end of the year. Wellbeing Community Support Activities and group sessions F£1￿Y£no trhg Prirr8 of Wal89 klo4%cg1 C4>ffee 8 a￿t Trop.h IFsattrwston@ Royars sladun. WFTSEN) Coffee 8 Chat rkop- In INotcutts VKtoriB (&rden C￿tre, W 6881 1.00- 3.OWm C4yTwYe￿￿t8ry Thgrapy Gro (the Prirw ofwdes Ho4xBI 2.ty). 3.(K TuBsday Wolbwo Infomiaiion Sgsc trh8 0fwa1￿14osp￿eI 10.00- 11.30am atring sgv tlh8 Pri￿e ofwaes Hospv>l Atternoon Wednesday Walw lorWeknThJ I0.￿￿m. 12.(NJ 1.30-23m fyoup ofwath Hosplcel Frld8y "My treatments receved from tho Complementary Therapy have been so relaxing aiid helpful. I have used ideas to help me with sleeping, anxiety etc. Coming here gives me time to talk about how I feel and I don't have to put the brave face on all the time. Wellbeing Service User

Lymphoedema Lymphoedema is a common condition that many cancer patients experience as a result of their treatment. While there is no cure for lymphoedema, the accumulation of fluid that causes swelling can be managed effectively with speciali7ed care from our clinics. Last year alone, our team held a total of 1280 appointments, and we issued 374 garments. 1280 appointments 374 garments issued

Bereavement Services We provide two services at the Hospice for psychological support: The Hospice After Care Support SeNice and the Wakefield & District Bereavement Service. Relatives were supported with bereavement counselling and supported after the death of a loved one. Support sessions by 1.1 counselling and telephone support 158 Wakefield District service appointments 550

Our Finances The Hosp1ce relies heavily on public donations to fund patient care. Income Contracted servic8S Non-recurrent covid funding 5.8Wo Donation 13,7Y. livestments Retail 25% Legacies 30.3Yo Events and Lottery Other Government Grants 0.90/0 NHS Grants 14.6¥0 Catering The Hospice receives a minority grant funding contribution from the NHS. In 2022-2023 the hospice received inflationary uplifts to its core grant along with £341 ,801 of non-recurrent funding. Nationally there is increased pressure on all health and social care providers and we are working hard wrth system partners and our community to ensure that income keeps pace with demand and inflation.

Our Finances

Expenditure

----- Start of picture text -----
Catering
Fundraising
1.5%
8.2%
Retail
29.6%
Incare
49.3%
Outreach and other care
8.3%
Lymphoedema clinic
3.1%
----- End of picture text -----

In 2022-2023, 88p of every £1 spent by The Prince of Wales Hospice was spent on patient care. The other 12p, of each £ was spent on fundraising costs, an investment which brought a three and half fold return, raising 35p in donation and fundraising income for the Hospice.

Charity Information

COMPANY INFORMATION
Charity name The Five Towns Plus Hospice Fund Limited
Working name The Prince of Wales Hospice
Charity registration number 514999
Company registration number 01797810
Registered office The Prince of Wales Hospice, Halfpenny Lane, Pontefract, WF8 4BG
Trustees
Mr G Tollefson (Chair) Resources
Dr R E Roche (Deputy Chair) Clinical Governance
Mr A C Wearing (Treasurer) Resources, Remuneration
Mrs A Gleed MBE Clinical Governance, Corporate Governance & Risk
Mr B Parkes Clinical Governance, Corporate Governance & Risk
Mrs S Cheseldine Corporate Governance & Risk, Resources, Remuneration
Mr M Izon (Resigned 20 October 2022)
Dr P Earnshaw
Mr S Dibb (Appointed 20th October 2022), Corporate Governance & Risk,
Remuneration
Ms H O’Donnell (Appointed 20th October 2022), Resources, Clinical Governance & Risk
Mr S Topham (Appointed 20th October 2022), Resources, Remuneration
Collaborative Chief Executive Office (CCEO)
Mrs A Darley Director of Estates and Facilities
Mrs J Schofield Director of Clinical Services
Dr H Pearse Medical Director (resigned 30 Sept 2022)
Dr P Ashwood Medical Director (appointed 1 October 2022)
Mrs L Hamer Director of People and Culture
Mrs S Calvert Director of Finance
Mrs S Batty Director of Income Generation and Marketing
Auditors Azets Audit Services Ltd, Triune Court, Monks Cross Drive, York, YO32 9GZ
Bankers Virgin Money, Carlton Street, Castleford, WF10 1BW
COIF Charity Fund Senator House, 85 Queen Victoria Street, London, EC4V
4ET
Flagstone Investment Management, 1stFloor, Clareville House, 26-27
Oxendon Street, London, SW1Y 4 EL
Investment Managers Brewin Dolphin, 1 Wellington Place, Leeds, LS1 4AN
Solicitors Hartley & Worstenholme, 20 Bank Street, Castleford WF10 1JD
Wrigleys Solicitors LLP,

17

Report of the Trustees

REPORT OF THE TRUSTEES

The Trustees present their annual report, which also meets the requirements of a Directors Report for the purposes of Company Law, together with the audited consolidated financial statements of the charity and its subsidiaries for the year ended 31 March 2023.

The reference and administrative information set out on page 1 forms part of this report. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the 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 and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure, governance and management

The Company is limited by guarantee and is governed by its Memorandum and Articles of Association as adopted at its Annual General Meeting on 12 November 2015. It is registered as a charity with the Charity Commission. The Five Towns Plus Hospice Shops Ltd and the Five Towns Plus Hospice Trading Limited are wholly owned subsidiaries.

The Directors of the Company are listed on page 1 and are known as the Board of Trustees. Trustees who were such when the Memorandum and Articles of Association were adopted at its Annual General Meeting on 12 November 2015 must seek re-appointment at the Annual Trustees' Meeting at the end of each three-year period. All Trustees appointed after that date may serve no more than three terms of office of three years each (either consecutively or in total) up to the age of 75 unless they are invited to continue by all (i.e. 100%) of the remaining Trustees. Trustees appointed before that date are, if appropriate, reappointed by the Board at the end of each three-year term and for these Trustees there is no upper limit to the period served or maximum age restriction. Therefore, the maximum term of service for some Trustees exceeds the 9 years recommended by the Charity Governance Code. However, the Board of Trustees have agreed that a longer maximum term of service is more appropriate for a local service delivery charity like the Hospice and enables it to achieve the optimum balance of skills and experience on the Board.

The Trustees meet at least four times a year. There are Board sub-committees covering clinical governance, corporate risk and governance, resources and remuneration, all of which report to the Board. Appropriate members of the Collaborative Chief Executive Office (CCEO) team are present at the meetings of the Board subcommittees. The CCEO takes shared responsibility for the day to day running of the Hospice and its subsidiaries along with carrying out the development of the strategy on behalf of the Board of Trustees. This structure shows the Board of Trustees commitment to leaders working together to develop the Hospice for the benefit of local people.

The Board continued to consider its composition and effectiveness. Trustees are recruited through robust process including an interview with the Chair and one other Trustee and can only serve as a Trustee once all relevant checks have been completed. The Hospice has a full induction programme for newly appointed Trustees and all Trustees are appraised annually. Trustees are encouraged to attend appropriate training events when these will facilitate the undertaking of their role.

19

REPORT OF THE TRUSTEES (CONTINUED)

Objects and activities

The objects of the Charity, as set out in the Articles of Association adopted on 12 November 2015, are:

The principal activity of the Charity is the provision of effective, supportive and professional hospice-based specialist palliative care. Palliative care is a key component of end-of-life care which is defined by the National Institute for Health and Care Excellence (NICE) as:

‘ The active holistic care of patients with advanced progressive illness. Management of pain and other symptoms and provision of psychological, social and spiritual support is paramount. The goal of palliative care is achievement of the best quality of life for patients and their families. Many aspects of palliative care are also applicable earlier in the course of the illness in conjunction with other treatments.’

Palliative care aims to:

Specialist palliative care encompasses hospice care (including inpatient hospice care, day therapy and hospice at home) as well as a range of other specialist advice, support and care such as that provided by hospital palliative care teams. Specialist palliative care should be available on the basis of need, not diagnosis.

The Trustees have had regard to the guidance provided by the Charity Commission on public benefit. In providing care as above the Hospice is providing a public benefit in line with its prime object. The Hospice will consider referrals of any patients from any medical or clinical practitioner or other clinical organisation. The Hospice will admit all such referred patients unless (a) a clear need for specialist palliative care has not been established, (b) it would be detrimental to a patient’s well-being (c) there are no beds available or (d) the patient declines the admission.

The Hospice does not charge patients or their relatives or carers for any of its services. Although the Hospice was set-up to cater for the needs of the people of eastern Wakefield (or the ‘Five Towns’), it will accept patient referrals from anywhere in the UK and will consider those referrals in the same way and against the same criteria as local referrals. Referral criteria to the Lymphoedema Clinic and Wakefield District Bereavement Service are set by the terms of our contracts with the NHS.

In furtherance of the second object, the Company had obtained planning permission for the construction of a care home with nursing on the same site as the Hospice but, following a rigorous cost appraisal of building and running such an establishment, has decided to leave this development in abeyance.

The Board is committed to continuous improvement in the quality and scope of hospice care for patients with life limiting illnesses, closer collaboration with partner organisations, including the NHS, in the provision of palliative and specialist palliative care and the education of those professionals who require an understanding or knowledge of palliative and specialist palliative care.

20

REPORT OF THE TRUSTEES (CONTINUED)

The Hospice successfully registered with the Care Quality Commission (CQC) in 2010 and is regulated by it. The Hospice was inspected by the CQC in late 2016, when it was accorded an overall rating of, "good". Systematic programmes of clinical audit and medical/ clinical staff education continue to support ongoing improvements in professional care.

Future Plans

The hospice set it previous 3 year strategy in February 2020 and the strategic objectives were:

which will lead to a sustainable organisation.

In March 2023, the Trustees met with the CCEO and considered progress against these objectives and what the priorities would be for the next few years. The following strategic objectives were agreed for 2023-2026:

21

REPORT OF THE TRUSTEES (CONTINUED)

These objectives build on the work done to date under the previous three-year strategy, having successfully operationalised many elements of the strategy. There will be a focus on working with the healthcare system and partners to expand our reach and supporting more people and their families, especially looking at how we can expand our lymphoedema and bereavement service along with the ongoing development of our wellbeing service.

Like all organisations we have felt the effects of high employment and salary inflation and we will continue to focus on ensuring the Hospice is an attractive place to work for both staff and volunteers.

Another priority will be the IT infrastructure and we have plans to both upgrade existing systems, i.e. becoming paper-lite on the ward, along with introducing new ones, such a new donor records system. These improvements will help everyone to work efficiently and have the data they need in an accessible way.

The Hospice’s financial sustainability in the economic environment will continue to be a strategic objective. We will continue to look at new ways of raising money, such as the ongoing development of the Caring Kitchen, as well as developing existing fundraising lines such as bringing back the Cyclothon event. With an increasing reliance on legacy income, ensuring a continued pipeline of legacies forms part of our financial sustainability. Therefore, the Hospice will be moving our online will-writing service to Bequeathed, which will give a more comprehensive service for those who cannot access an appointment at one of the Free Will Weeks we run each year. The retail arm of the Hospice has always been successful and as part of an ongoing programme of improvements and refurbishments, there are plans to update the most outdated of these shops.

We will continue to work with NHS commissioners to achieve a fair, equitable and sustainable funding arrangement for the Hospice.

As we have dealt with covid in the past few years, we have not invested in the Hospice building as much as the Trustees would have liked to. The strategic objectives include reducing our environmental impact and improving the building for patients, visitors, staff and volunteers. Investments in solar panel installation in the summer of 2023 will reduce our environmental impact and our exposure to energy cost changes. A project is also underway to look at how the Hospice uses space and if office areas could be configured more effectively to reduce both the environmental impact and cost, whilst providing a more modern and attractive working environment for staff and volunteers. Having secured the funding for part 1 of our garden project, 8 of our patient rooms will have private patio areas and access to a communal area for socialising.

All of these plans are only possible with the dedication and commitment of the many teams that make up the Hospice. Ensuring they can all deliver their services on a consistent basis is what will allow the Hospice to move forward with the strategic objectives.

22

REPORT OF THE TRUSTEES (CONTINUED)

Achievements and Performance

The charity’s objectives for 2022/23 were:

which will lead to a sustainable organisation.

The Hospice appointed a Wellbeing Lead during the year. They and their team have worked with groups and partners across the system to develop our wellbeing service, offering a range of activities, including an arts and crafts groups, a drop in at a local garden centre and a physiotherapist led arm chair exercise group. As part of this project, Healthwatch Wakefield undertook a consultation with our community and the Trustees are grateful to those members of the community who took the time to respond and help develop the service.

The Hospice continued to develop the Caring Kitchen, refining our offering and expanding our client base. In retail a part-time member of staff was appointed to manage our eBay operations. Plans for re-launching some of our events, such as the Cyclothon, were completed, including finding appropriate partners to work with. The marketing team has been expanded and they worked with a digital agency to increase our digital presence alongside increasing our photo and video stock. The ‘tour of the hospice’ video has been viewed 133 times and enabled patients and visitors to come to the Hospice, whereas they were previously too anxious.

As part of the Hospice’s workforce planning, a new salary scale was implemented, ensuring all non-medical roles were evaluated and matched to the scale points. This provides clarity and transparency so all staff can understand how they can progress here. By working with partners across the system to access the apprenticeship levy, the Hospice had 3 members of staff on apprenticeship programmes in the year, working towards high quality qualifications, including a trainee nurse associate. Further investment in high quality training for new and existing managers, along with supporting staff to access qualifications such as AAT and CIPD, ensure that the Hospice has a well-qualified workforce across all functions.

23

REPORT OF THE TRUSTEES (CONTINUED)

The Hospice worked with the both local commissioners and the West Yorkshire Hospice Collaborative to secure the Hospice £341k of additional, non-recurrent income during the year, enabling the Hospice to pursue its strategy. Having received some sizeable legacies in the year, the Hospice appointed Brewin Dolphin as Investment Managers in March 2023 to ensure that any long term reserves are being preserved in value.

The Hospice has continued to engage with all parts of the NHS to look at how the Hospice can deliver what the community need and ensure that it is sustainable. This includes participation at the Wakefield District End of Life Board and the Connecting Care Alliance. The West Yorkshire Collaborative of all Hospices in the West Yorkshire region is looking at ways Hospices can work together to ensure the sustainability of the sector and raise the profile of Hospices across the wider health system and at the West Yorkshire ICS level. The Hospice continues to play an active role in this collaboration.

At the end of the financial reporting period the Hospice was providing the following services to benefit the public:

The Hospice pursued a broad spectrum of fundraising opportunities and initiatives, including fundraising from trusts, companies, community groups, individuals and the organisation of fundraising events. In 2022/23 the Hospice continued to be a member of the Fundraising Regulator. The Hospice remained committed to compliance with the fundraising Code of Practice and upheld the commitments of the Fundraising Promise.

Financial review

The charity’s financial health at the year-end remained strong due to significant generous donations from the community, grant income, legacies and government grant income. We are extremely grateful for the ongoing support our community gives to us.

The Group's net income in the Consolidated Statement of Financial Activities of £1,520,060, surplus (2022: surplus of £518,370) comprises a surplus of £1,492,153 (2022: surplus of £381,622) from unrestricted funds and a surplus of £27,907 (2022: surplus £136,748) from restricted funds.

Restricted income of £70,379 (2022: £282,869) includes grants and donations to support and develop our wellbeing and outpatient services, to replace bed and mattresses on the inpatient unit and towards our garden development project which will provide our rooms with individual patio areas.

24

REPORT OF THE TRUSTEES (CONTINUED)

Legacy income of £1,798,255 (2022: £759,792), which is subject to significant year-on-year fluctuations, increased by £1,038,43.

Shops income of £1,480,873 (2022: £1,380,795) was £91,328 higher than 2021/22 reflecting the focus on attracting new and previous customers with an increase in footfall of 10.8%.

Direct Grant funding from the NHS increased during the year by 3.4% inflationary uplift and we received £241,801 of non-recurrent funding, recognising the issues that hospices have with long term funding and the impact of the cost of living crisis on raising funds. We also received £100,000 of funding towards the costs we incurred keeping our beds open over the winter, providing support to the system during the peak of winter bed pressures.

Total expenditure on charitable activities was £2,686,377 (2022: £2,527,907).

Due to significant issues with recruiting in the early part of the financial year, and the historically low pay of Hospice staff, the Hospice awarded two pay increases, one in April 2022 and one in July 2022. This combined with bringing staff into the correct point on the new pay scales meant that staff received a 10% pay increase. This approach ensured we continued to be able to recruit to roles across the Hospice and continue to provide our services.

Fundraising review

All fundraising activity on behalf of the Hospice was undertaken by Hospice staff or registered Hospice volunteers, except the following:

25

REPORT OF THE TRUSTEES (CONTINUED)

The charity received 4 complaints related to fundraising activity in the year 2022/23, one of which related to the quality of free gifts given for appeal donations in memory with the remainder around communications.

The Hospice and Local Hospice Lottery fundraisers continued their commitment to not knowingly soliciting support from vulnerable people, adhering to a documented course of action should it become clear that someone is vulnerable.

The Hospice’s Trustees greatly appreciate the hard work, dedication and enthusiasm of staff and volunteers throughout the year and are grateful to them for their efforts. Our volunteers provide support and help in all areas of the hospice such as:

Bereavement Reception
Retail Finance
Wellbeing Fundraising
Catering Facilities

The Trustees are very grateful for corporate and community support of the Hospice in donations of money, legacies, support of our events and shops. The Hospice is reliant on these caring individuals, companies and organisations in the community, as our own events and activities alone, could never raise enough funds to provide Hospice care.

Factors likely to affect future financial performance

The Hospice is not immune to inflationary pressure in staff costs, utilities, goods and services. The support from our community for fundraised income continues to be fantastic. However, the Trustees are conscious that everyone is feeling the impact of the cost-of-living crisis and this is likely to have an impact on fundraised income, therefore, they have planned for this in their forecasting.

The strategy for the next three years includes making the Hospice efficient from both an environmental and financial perspective, looking at solar panels and use of space to reduce costs and investing in IT and infrastructure so the Hospice can work efficiently and effectively.

The Hospice brought back the Cyclothon in 2023 with the support of Velo 29, minimising costs and ensuring that this event can be developed over the next few years back to its pre covid levels. The Hospice has undertaken a mailing in 2023 to raise restricted funds for new beds and mattresses, which is a departure from our usual appeal mailings and reiterates the clear link between the generous support from the community and the care we provide. For the first time, this appeal included a door drop throughout our catchment area to increase supporter numbers to provide longer term income.

Despite the economic outlook and cost pressures, our shops still continue to receive plentiful, good quality donations and the retail arm continues to perform well.

The Trustees are grateful to all those who remember us in their wills and the Hospice continues to invest in legacy giving to maintain a pipeline of legacies, which have been so generous in the past few years. The fluctuations of legacies year-on-year led to the Trustees to designate a £500k reserve so this fluctuation does not effect services in the short-term and this will be maintained.

26

REPORT OF THE TRUSTEES (CONTINUED)

The Hospice continues to work with the wider health system, both at the Wakefield level and the West Yorkshire level, to ensure the ongoing sustainability of the Hospice.

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and not less than one year from the date of approval. The Trustees are constantly monitoring the financial position of the charity and the ongoing uncertain situation in respect of the economic environment. The charity has no borrowings and is working with system partners on sustainable funding for the Hospice. The Charity has a number of ongoing grants, contracts and legacy notifications and as even with forecasting for donations to be reduced and costs to be higher are confident that the Hospice has sufficient reserves for the current economic environment.

Pay policy for senior staff

Remuneration of the CCEO is reviewed annually and decided by the Board. In 2022/23 senior pay was increased by 10% in line with other staff pay following a benchmarking of Director roles in both hospices and the charity sector. From February 2022, the Trustees awarded the Senior Management Team a special responsibility allowance to recognise the additional responsibilities they were undertaking in the absence of a Chief Executive. In April 2023, this was amalgamated into their salaries.

Reserves policy

The Board of Trustees has considered the charity’s requirements for reserves in the light of the main risks to the operation. That review considered the nature and amounts of the income and expenditure streams, in particular the need to match variable income with fixed commitments and the nature of reserves. The group’s main cost is staff salaries: these are regular payments, whereas income is more erratic. The review concluded that a buffer for uninterrupted services and sufficient management flexibility would be ensured by a general reserve of between six month’s salary costs and six months full costs. At 31 March 2023 free reserves, which are unrestricted funds excluding funds designated or invested in fixed assets, stood at £3,215,790 (2022: £2,214,105). This represented 12.8 month’s salary costs and 8.7 months full costs (2022: 9.14 month’s salary costs and 6.45 months full costs). A significant increase in the reserves is due to one legacy received at the end of the financial year of over £1.4m. The Trustees have plans in place to ensure that this funding is used towards longer term sustainability plans, such as improving the building and IT, along with developing our services, all of which are areas which have been under developed in recent years, whilst we focussed on the issues arising from covid.

Risk management

Strategic risks and agreed mitigations are reviewed annually by the Board of Trustees and the Board of Trustees has agreed actions to mitigate these risks. The responsibility for reviewing these risks rests with relevant Board sub-committees and nominated member of the CCEO.

The Hospice’s CCEO reviews all risks and agreed mitigating actions at its monthly meetings with a view to proposing changes to the Board and the relevant subcommittees.

The five main areas of risk are:

27

REPORT OF THE TRUSTEES (CONTINUED)

Trustees’ responsibilities for the financial statements

The charity Trustees, who are also directors for the purposes of company law, are responsible for preparing a Trustees’ annual report and financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).

Company law requires the charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the Trustees are required to:

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

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 UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure of information to auditors

In so far as the Trustees are aware at the time of approving our Trustees' annual report: there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group's auditor is unaware; and the Trustees, having made enquiries of fellow directors and the group's auditor that they ought to have individually taken, have each taken all steps that they are obliged to take as directors in order to make themselves aware of any relevant audit information and to establish that the group’s auditor is aware of that information

Mr G Tollefson Chair

28

Independent Auditor's Report 29

INDEPENDENT AUDITOR’S REPORT

Opinion

We have audited the financial statements of The Five Towns Plus Hospice Fund Limited (the “parent charity”) and its subsidiaries (the “group”) for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, the company and consolidated balance sheets, the consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on both the group’s and 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 Trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

30

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

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

Responsibilities of the Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees 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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group’s and 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.

31

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

Our responsibilities for the audit of the financial statements

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

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

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

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.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

32

INDEPENDENT AUDITOR’S REPORT (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Alan Sidebottom (Senior Statutory Auditor)

Date: ……………………

For and on behalf of Azets Audit Services Limited

Chartered Accountants Statutory Auditor

Triune Court Monks Cross Drive York YO32 9GZ

33

Consolidated Statement of Financial Activities 34

Consolidated Statement of Financial Activities (incorporating a consolidated Income and Expenditure account) for the year ended 31 March 2023

Notes Unrestricted Restricted Restricted
Total		 Unrestricted Restricted Total
Funds Funds 2023 Funds Funds 2022
£ £ £ £ £ £
INCOME FROM:
Donations and legacies:
Donations 2 746,250 69,999 816,249 727,677 144,857 872,534
Legacies 2 1,798,255 - 1,798,255 759,792 - 759,792
Income from charitable
activities:
NHS grants for palliative care 4 1,478,409 - 1,478,409 1,114,334 125,745 1,240,079
Income from other trading
activities:
Shops 3 1,480,873 - 1,480,873 1,380,795 - 1,380,795
Rental income 3 7,725 - 7,725 8,750 - 8,750
Catering 3 62,644 - 62,644 - - -
Fundraising events and lottery 236,348 380 236,728 223,928 - 223,928
Investment income 34,626 - 34,626 2,312 - 2,312
Other income:
Government support grants
(including furlough)		 - -
-
80,000
12,267
92,267
Profit on disposal of fixed
assets		 14,146 - 14,146 358
-		 358
Other income 13,642 - 13,642 43,623 - 43,623
TOTAL INCOME 5,872,918 70,379
5,943,297
4,341,569
282,869
4,624,438
EXPENDITURE ON:
Cost of raising funds:
Cost of raising donations,
legacies and fundraising		 7
362,221		 - 362,221 341,539
-		 341,539
Shops 3,7 1,307,069 3,493 1,310,562 1,238,571 8,149 1,246,720
Catering 67,927 - 67,927 - - -
1,737,217 3,493 1,740,710 1,580,110 8,149 1,588,259
Expenditure on charitable
activities:
Hospice inpatient unit 7 2,175,021 5,939 2,180,960 2,015,419 133,726 2,149,145
Lymphoedema clinic 7 137,336 80 137,416 87,571 - 87,571
Outreach and other care (inc
bereavement support service)		 7
335,041		 32,960
368,001
286,945
4,246
291,191
2,647,398 38,979 2,686,377 2,389,935 137,972 2,527,907
TOTAL EXPENDITURE 4,384,615 42,472
4,427,087
3,970,045
146,121
4,116,166
Net income for the year
before other recognised 6
1,488,303		 27,907
1,516,210
371,524
136,748
508,272
gains
Realised and unrealised gains
on investments		 3,850 - 3,850 10,098
-		 10,098
NET INCOME FOR THE YEAR 1,492,153 27,907
1,520,060
381,622
136,748
518,370
Transfers between funds 27,140 (27,140) - 87,410 (87,410) -
Net movement in funds 1,519,293 767 1,520,060 469,032 49,338 518,370
Total funds brought forward 4,614,257 136,646 4,750,903 4,145,225 87,308 4,232,533
TOTAL FUNDS CARRIED
FORWARD		 6,133,550 137,413
6,270,963
4,614,257
136,646
4,750,903

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities of the group. The Statement of Financial Activities also complies with the requirements for an Income and Expenditure Account under the Companies Act 2006.

35

Consolidated Balance Sheet 36

Consolidated Balance Sheet as at 31 March 2023

----- Start of picture text -----
Notes 2023 2022
£ £ £ £
FIXED ASSETS
Tangible fixed assets 12 1,417,762 1,550,152
Investments 16 39,314 35,464
1,457,076 1,585,616
CURRENT ASSETS
Stock 14 12,595 6,772
Debtors 15 507,668 1,141,516
Cash at hand and short term deposits 4,682,041 2,385,884
5,202,304 3,534,172
LIABILITIES
Creditor amounts falling due within
17 (388,417) (368,885)
one year
NET CURRENT ASSETS 4,813,887 3,165,287
TOTAL ASSETS LESS CURRENT
6,270,963 4,750,903
LIABILITIES
TOTAL NET ASSETS 6,270,963 4,750,903
THE FUNDS OF THE CHARITY:
Restricted income funds 18,20 137,413 136,646
Designated funds 18 1,500,000 850,000
Unrestricted funds 18 4,633,550 3,764,257
TOTAL FUNDS 6,270,963 4,750,903
----- End of picture text -----

The financial statements on pages 3 to 5 were approved by the Trustees on XX December 2023 and signed on their behalf by:

Mr G Tollefson (Chair)

Mr A C Wearing (Treasurer)

Company Registration Number: 01797810

37

Company Balance Sheet 38

Parent Company Balance Sheet as at 31 March 2023

----- Start of picture text -----
Notes 2023 2022
£ £ £ £
FIXED ASSETS
Tangible fixed assets 12 1,417,762 1,550,152
Investments in subsidiaries 13 3 3
Investments 16 39,314 35,464
1,457,079 1,585,619
CURRENT ASSETS
Stock 14 12,595 6,772
Debtors 15 502,037 1,141,516
Cash at hand and short term deposits 4,677,427 2,385,884
5,192,059 3,534,172
LIABILITIES
Creditor amounts falling due within
17 (379,926) (368,888)
one year
NET CURRENT ASSETS 4,812,133 3,165,284
TOTAL ASSETS LESS CURRENT
6,269,212 4,750,903
LIABILITIES
TOTAL NET ASSETS 6,269,212 4,750,903
THE FUNDS OF THE CHARITY:
Restricted income funds 18,20 137,413 136,646
Designated funds 18 1,500,000 850,000
Unrestricted funds 18 4,631,799 3,764,257
TOTAL FUNDS 6,269,212 4,750,903
----- End of picture text -----

The financial statements on pages 3 to 5 were approved by the Trustees on XX December 2023 and signed on their behalf by:

Mr G Tollefson (Chair)

Mr A C Wearing (Treasurer)

Company Registration Number: 01797810

39

Consolidated Cash Flow Statements

Statement of Consolidated Cashflows as at 31 March 2023

----- Start of picture text -----
2023 2022
----- End of picture text -----

2023
2022
£
£
NET CASH PROVIDED BY
Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends and interest from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
NET CASH USED IN INVESTING ACTIVITIES		 2,326,416
(147,267)
34,626
2,312
15,416
358
(80,301)
(93,156)
(30,259)
(90,486)
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR 2,296,157
(237,753)
Cash and cash equivalents at beginning of the year 2,385,884
2,623,637
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 4,682,041
2,385,884

RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

----- Start of picture text -----
2023 2022
£ £
----- End of picture text -----

NET INCOME FOR THE YEAR 1,520,060 518,370
Adjustments for:
Depreciation charges 211,421 214,808
Unrealised (gains) on investments (3,850) (10,098)
Interest from investments (34,626) (2,312)
Loss/(profit) on disposal of tangible fixed assets (14,146) (358)
Decrease in stock (5,823) 184
Decrease/(increase) in debtors 633,848 (796,732)
(Decrease)/increase in creditors 19,532 (71,129)
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,326,416 (147,267)

ANALYSIS OF CHANGE OF NET FUNDS

31 MARCH 2022 CASH FLOW 31 MARCH 2023
£ £ £
Cash at and in hand
2,385,884		 2,296,157 4,682,041
2,385,884 2,185,157 4,682,041

41

Notes to Financial Statements

1 ACCOUNTING POLICIES

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

Company information

The Five Towns Plus Hospice Fund Limited is a Company Limited by Guarantee and is also a registered charity. The registered office is The Prince of Wales Hospice, Halfpenny Lane, Pontefract, WF8 4BG.

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

The Financial Statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these Financial Statements are rounded to the nearest £1.

Basis of preparation

The accounts 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 (FRS102) (effective 1 January 2019) (“Charities SORP (FRS 102)”), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

The Five Towns Plus Hospice Fund Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes.

On the grounds that the charitable company's results are consolidated into the charitable company’s group accounts the charitable company has taken advantage of certain exemptions conferred by section 1.11 of FRS 102 as follows:

Exemption from presenting a statement of cash flows as a primary statement to the financial statements.

Going concern

The Trustees have prepared financial projections, taking into consideration the current economic climate and its potential impact on the sources of income and planned expenditure. They have a reasonable expectation that adequate financial resources are available to enable the charity to continue in operational existence for the foreseeable future, and have adequate contingency plans in the event that income streams are reduced. Consequently the financial statements have been prepared on the basis that the charity is a going concern.

The Trustees consider that there are no material uncertainties about the group’s ability to continue as a going concern. With regard to the future, the most significant areas of uncertainty are the level of support of West Yorkshire ICB and the level of donation income , which needs to be increased each and every year and is covered in more detail in the Trustees’ annual report.

43

1 ACCOUNTING POLICIES (CONTINUED)

Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary companies The Five Towns Plus Hospice Shops Limited and The Five Towns Plus Hospice Trading Limited.

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. The amount of the surplus for the year dealt with within the charity’s Financial Statements is disclosed in note 5.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions relating 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 income has related expenditure (as with fundraising) the income and related expenditure are reported gross in the Statement of Financial Activities (“SOFA”).

Donations, grants and gifts are recognised when receivable. Income from Gift Aid tax reclaims is recognised for any donations with relevant Gift Aid declarations recognised in income for the year. Any amounts of Gift Aid not received by the year end are accounted for in income and accrued income in debtors.

Income from NHS service level agreements, government and other grants, whether “capital” or “revenue” grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Sponsorship from events, fundraising and events registration fees are recognised in income when the event takes place. Lottery income is accounted for in respect of those draws that have taken place in the year. Trading income is recognised on point of sale for donated and purchased goods and catering sales.

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

Income received in advance for a fundraising event or for a grant relating to the following year is deferred until the criteria for income recognition are met.

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

44

1 ACCOUNTING POLICIES (CONTINUED)

Donated goods, services and facilities

Donated goods for resale are recognised when the company has control over the item, the receipt of economic benefit from the sale of the item is probable and that economic benefit can be measured.

Donated services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably. In accordance with Charities SORP (FRS 102), the time of volunteers in the hospice and the charity shops is not recognised. Refer to the Trustees’ annual report for more information about their contribution.

Donated professional services and facilities are included in income at the estimated value of the gift to the charity when received, based on the amount that the charity would have been prepared to pay for these services of facilities had it been required to purchase them; a corresponding amount is then recognised in the expenditure in the period of receipt. Donated fixed assets are similarly taken to income at the value to the charity with the other entry being capitalised in fixed assets.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of obligation can be measured reliably. All expenditure is accounted for on an accruals basis under the following headings:

Support costs are allocated to each of the activities based on staff headcount and premises utilisation. More detail on the analysis and basis of allocation is given in note 8 to the financial statements.

Staff costs

The costs of short term employee benefits are recognised as a liability and an expense where settlement of obligations does not fall within the same period.

45

1 ACCOUNTING POLICIES (CONTINUED)

Pensions

Employees of the group are entitled to join The Prince of Wales Hospice Group Personal Pension Plan, which is a defined contribution ‘money purchase’ scheme. The charity contribution is restricted to the contributions disclosed in note 9. Contributions of £9,905 (22022: £6,934) remained outstanding at the year end. The costs of the defined contribution scheme are included with the associated staff costs and allocated therefore to raising funds, charitable activities, support and governance costs and charged to the unrestricted funds of the charity.

Employees who are already active members of the NHS Pension Scheme continue to be members. Rates are set by the NHS Pensions Agency. As explained in note 21 the scheme is a multi-employer scheme not designed to identify the assets and liabilities attributable to the Charity, so in accordance with FRS102 the scheme is accounted for as a defined contribution scheme. Contributions of £6,601 (22022: £8,744) remained outstanding at the year end

Three employees have their own defined contribution ‘money purchase’ pension plans into which the group pays between 3% and 5% of salary. Contributions of £1,431 (2022: £1,823) remained outstanding at the year end. The costs of the defined contribution scheme are included with the associated staff costs.

Operating leases

Operating leases are recognised over the period of which the lease falls due. Benefits received and receivable as an incentive to sign an operating lease together with rentals due are charged on a straight line basis over the period of the lease.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity.

Designated funds are unrestricted funds of the charity which the Trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be used solely for a particular area of the charity’s work or for purchases of specific assets for use by the charity.

Tangible fixed assets

All assets costing more than £500 or part of a project costing more than £500 in total are capitalised at their historical cost when purchased including any incidental costs of acquisition. The limits for capitalisation are lower in the trading subsidiaries.

Depreciation is provided to write off the cost less any estimated residual value of all fixed assets evenly over their estimated useful economic lives on a straight line basis as follows:

Freehold land and buildings - 2% or 5% straight line Improvements to short leasehold land and buildings - 20% or 10% straight line basis Motor vehicles – 20% or 25% straight line Fixtures, fittings and equipment - 25% or 15% straight line

46

1 ACCOUNTING POLICIES (CONTINUED)

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market price, except for shares in trading subsidiaries which are carried at cost. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the SOFA as they arise. Realised gains and losses are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired during the year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised gains and losses are combined in the SOFA.

Stock of new goods is included at the lower of cost and net realisable value.

It is impractical to estimate the fair value of goods donated for sale in the charity’s shops due to the high volume, low value and agent arrangements for the purposes of retail gift-aid. The value of these goods to the charity is instead recognised when they are sold in the shops.

Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity held for working capital. Bank overdrafts are shown within borrowing in current liabilities.

Debtors

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

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the income and expenditure account.

Creditors, loans and provisions

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

Financial liabilities are derecognised when, and only when, the group’s obligations are discharged, cancelled or they expire.

Amounts recognised as provisions are best estimates of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

47

1 ACCOUNTING POLICIES (CONTINUED)

Taxation

The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The trading subsidiaries are not exempt from taxation, however any profits are expected to be gift aided to the Charity.

Critical accounting estimates and judgements

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

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

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgement- Legacies

Legacies are recognised as income when it is probable that economic benefit will be received by the charity and the amount is measurable. When probate has been granted, the charity has established its entitlement to the funds and where sufficient information is available to allow it to measure its entitlement . Judgement can be exercised over entitlement and/or measurement.

48

2 INCOME FROM DONATIONS AND LEGACIES

Group
2023 2022
£ £
Unrestricted donations and legacies
Individuals 584,311
573,194
Charitable trusts 45,025
29,910
Corporate donors 116,914
124,573
Legacies 1,798,255 759,792
Total unrestricted donations and legacies
Restricted donations		 2,544,505 1,487,469
Individuals 2,359
18,000
Charitable trusts 66,140 72,907
Corporate donors 1,500 53,950
Total restricted donations 69,999
144,857
TOTAL DONATIONS AND LEGACIES 2,614,504
1,632,326
3
INCOME FROM OTHER TRADING ACTIVITIES
Group
2023 2022
£ £
Income from the sale of donated goods 1,388,388
1,245,320
Gift Aid from shop sales on an agency basis 89,587
94,758
Income from the sale of bought in goods 2,898
3,881
Income from commercial catering 62,644
-
Total income from sales 1,543,517 1,343,959
Income from rental 7,725
8,750
Retail and leisure grant income - 36,836
Coronavirus job retention scheme - 5,265
Total income from trading activities 1,551,242 1,394,810
Cost of buying in goods 2,249
575
Staff costs 639,340 597,456
Property costs 130,267
141,617
Other costs (including loss on fixed assets) 558,466 507,072
Other commercial catering costs 48,167
-
Total expenditure for trading activities 1,378,489
1,246,720
SURPLUS FROM TRADING ACTIVITIES 172,753
148,090

All shops income in both the current and previous year relates to unrestricted funds

Retail gift aid income has been included in the income from trading activities, rather than donations as this income is directly related to the retail outlets and more accurately reflects the trading performance of the retail operations. Commercial catering income is income from our Caring Kitchen brand.

49

4 INCOME FROM CHARITABLE ACTIVITIES

Group
2023 2022
£ £
Grants from West Yorkshire ICB
Core funding grants (including 24 hour admissions) 867,212 825,000
Grant to provide a Lymphoedema clinic for the Wakefield and North
Kirklees District		 148,069 143,200
Bereavement Contract 70,000 70,000
Non recurrent NHS funding 241,801 -
Discharge beds funding 100,000 -
Continuing Health Care 686 39,047
Total ICB grants 1,427,768 1,077,247
Fees for training medical and social work students 10,920 17,920
Reimbursement of Stock Drugs 22,077 19,167
Other Government Grants 17,644 125,745
TOTAL GRANTS 1,478,409 1,240,079

In 2022, the NHSE awarded funding to allow the hospice to make available bed capacity and community support December 2021 to March 2022, this income was restricted to our incare provision.

5 FINANCIAL PERFORMANCE OF THE CHARITY

The consolidated Statement of Financial Activities includes the results of the charity’s wholly owned subsidiaries which comprise retail and café operations. The summary financial performance of the charity alone is:

2023 2022
£ £
Income 5,943,297 4,624,438
Cost of raising funds (1,740,710) (1,588,259)
Expenditure on charitable activities (2,686,377) (2,527,907)
Net income 1,516,210 508,272
Investment gains 3,850 10,098
Total funds brought forward 4,750,903 4,232,533
TOTAL FUNDS CARRIED FORWARD 6,270,963 4,750,903
Represented by:
Restricted income funds 137,413 136,646
Designated income funds 1,500,000 850,000
Unrestricted income funds 4,633,550 3,764,257
TOTAL FUNDS CARRIED FORWARD 6,270,693 4,750,903

50

6 GROUP NET INCOME

Group
2023 2022
£ £
This is stated after charging:
Auditor’s remuneration - for audit 12,000
9,350
- for other services 6,550
5,925
Operating lease rentals:
Land and buildings 127,732
145,200
Plant and equipment 1,185
2,615
Depreciation of owned tangible fixed assets 211,421
214,808
Profit/(Loss) on tangible fixed assets 14,146
348
Trustees’ indemnity insurance policy 2,321
2,018
7
ANALYSIS OF GROUP EXPENDITURE
Year ended 31 March 2023 Direct staff Direct Support 2023
costs Costs Costs Total
£ £ £ £
Shops costs (Note 3) 619,581 419,017 271,964
1,310,562
Fundraising costs 197,714 84,970 79,537
362,221
Catering costs 19,759 34,320 13,848
67,927
Cost of raising funds 837,054 538,307 365,349
1,740,710
Hospice inpatient unit 1,261,128 350,347 569,485
2,180,960
Lymphoedema 75,665 32,337 29,414
137,416
Outreach and other therapies 179,901 83,884 104,216
368,001
Charitable activities 1,516,694 466,568 703,115
2,686,377
TOTAL 2,353,748 1,004,875 1,068,464
4,427,087
Year ended 31 March 2022 Direct staff Direct Support 2022
costs costs Costs Total
£ £ £ £
Shops costs (Note 3) 597,456 409,549 239,715
1,246,720
Fundraising costs 167,917 95,070 78,552
341,539
Cost of raising funds 765,373 504,619 318,267 1,588,259
Hospice inpatient unit 1,299,109 246,140 603,896
2,149,145
Lymphoedema 47,219 20,716 19,636
87,571
Outreach and other therapies 169,249 33,916 88,026
291,191
Charitable activities 1,515,577 300,772 711,558
2,527,907
TOTAL 2,280,950 805,391 1,029,825
4,116,166

51

8 ANALYSIS OF SUPPORT COSTS

Year ended 31 March 2023 Premises Management Support Governance 2023
Functions cost Total
£ £ £ £ £
Fundraising trading 1,382 36,912 231,182 2,488 271,964
Fundraising costs 5,923 7,044 66,095 475 79,537
Fundraising catering 4,146 928 8,712 62 13,848
Cost of raising funds 11,451 44,884 305,989 3,025 365,349
Hospice inpatient unit 93,588 45,536 427,292 3,069 569,485
Lymphoedema clinic 2,567 2,569 24,105 173 29,414
Outreach and other therapies 10,662 8,950 84,000 604 104,216
Charitable activities 106,817 57,055 535,397 3,846 703,115
TOTAL 118,268 101,939 841,386 6,871 1,068,464
Year ended 31 March 2022 Premises Management Support Governance 2022
Functions costs Total
£ £ £ £ £
Fundraising trading 1,285 50,422 184,558 3,448 239,713
Fundraising costs 5,509 9,765 62,611 669 78,554
Cost of raising funds 6,794 60,187 247,169 4,117 318,267
Hospice inpatient unit 90,897 68,579 439,730 4,690 603,896
Lymphoedema clinic 2,387 2,306 14,785 158 19,636
Outreach and other therapies 9,916 10,444 66,952 714 88,026
Charitable activities 103,200 81,329 521,467 5,562 711,558
TOTAL 109,994 141,516 768,636 9,679 1,029,825

Premises support costs are allocated on the basis of occupancy of the Hospice. All other support costs have been allocated on headcount.

ANALYSIS OF STAFF COSTS TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY 9 MANGEMENT PERSONNEL

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Salaries and wages 2,648,583 2,561,092 2,648,583 2,561,092
Social security costs 228,035 206,307 228,035 206,307
Pension costs
Group Personal Pension Plan 76,509 64,434 76,509 64,434
NHS pension scheme 51,063 63,831 51,063 63,831
Other 5,436 9,019 5,436 9,019
TOTAL EMPLOYMENT COSTS 3,009,626 2,904,683 3,009,626 2,904,683

52

ANALYSIS OF STAFF COSTS TRUSTEE REMUNERATIONN AND EXPENSES, AND THE COST OF KEY MANGEMENT PERSONNEL (CONTINUED)

9

Included in staff costs are £nil of redundancy and termination payments made to 1 employees (2021 £1,519 to 5 employees).

Employees earning more than £60,000

Charity and group Charity and group
2023 2022
No No
Between £60,000 and £70,000 5 -
Between £70,000 and £80,000 - -
Between £80,000 and £90,000 - -
Between £90,000 and £100,000 - 1

The charity Trustees and persons connected with them neither received nor waived any emoluments or benefits during the year (2022: £Nil). No Trustee received payment for professional or other services supplied to the charity (2022 £Nil). Travel, telephone and out of pocket expenses amounting to £nil (2022 nil) were reimbursed to 0 Trustee (2022: 0 Trustees).

The key management personnel of the group and the parent charity comprise the Trustees and the Senior Management Team, whose names are listed on page 1. The total employee benefits of the key management personnel of the Hospice were £453,932 (2022: £ 496,181).

10 STAFF NUMBERS

The average number of full-time equivalent employees during the year was:

Group Charity
2023 2022 2023 2022
No No No No
Charitable activity 55 58 55 58
Fundraising shops and catering 33 34 33 34
TOTAL 88 92 88 92

The monthly number of staff (including part-time and bank staff) during the year was as follows:

AVERAGE MONTHLY HEADCOUNT 126 129 126 129

11 RELATED PARTY TRANSACTIONS

At 31 March 2022, the Hospice owed The Five Towns Plus Hospice Shops Limited, a dormant subsidiary £2 (2021: £2).

On 11 March 2022, the hospice set up a new trading subsidiary, The Five Towns Plus Hospice Trading Ltd.

At 31 March 2022 the Hospice owed the subsidiary £1. This subsidiary started to trade in January 2023 and a management fee of £1,140 was charged from fund to trading for management fee and overheads. A charge of £3,330 was charged by Trading to Fund for the food element of patient meals.

53

12 TANGIBLE FIXED ASSETS- GROUP AND CHARITY TANGIBLE FIXED ASSETS- GROUP AND CHARITY
Freehold land
Fixtures and		 Motor Total
and buildings fittings vehicles
£ £ £ £
Cost
1 April 2022 2,2,686,941 1,577,769 51,424 4,316,134
Additions 3,292 77,009 - 80,301
Disposals - (7,433) (32,431) (39,864)
As at 31 March 2023 2,690,233 1,647,345 18,993 4,356,571
Depreciation
1 April 2022 1,462,442 1,258,192 45,348 2,765,982
Charge for the year 102,156 105,089 4,176 211,421
On disposals - (6,162) (32,432) (38,594)
As at 31 March 2023 1,564,598 1,357,119 17,092 2,938,809
Net book value
As at 31 March 2022 1,224,499 319,577 6,076 1,550,152
AS AT 31 MARCH 2023 1,125,635 290,226 1,901 1,417,762
13 INVESTMENTS
Year ended 31 March 2023 Group Charity
2023 2021 2023 2022
£ £ £ £
The Five Towns Plus Hospice Shops
Limited		 - - 2 2
The Five Towns Plus Hospice Trading
Limited
-		 - 1 1
TOTAL INVESTMENTS - - 3 3

The Hospice holds 2 shares of £1 each in its wholly owned trading subsidiary company The Five Towns Plus Hospice Shops Ltd which is incorporated in England and Wales (company number 02823729). At the 1 April 2016, the subsidiary hived its assets up to the Hospice at book value and therefore the subsidiary was dormant. The company has not traded since the hive up.

The Hospice holds 1 share of £1 in its wholly owned subsidiary The Five Towns Hospice Plus Trading Ltd which is incorporated in England and Wales (company number 13970045) which began trading in January 2023.


2023.
14 STOCK Group Charity
2023 2022 2023 2022
£ £ £ £
New goods for resale 9,215 1,152 9,215 1,152
Bags and retail consumables 3,380 5,620 3,380 5,620
TOTAL 12,595 6,772 12,595 6,772

54

15 DEBTORS

Amounts falling due within one year:

Group Charity
2023 2022 2023 2022
£ £ £ £
Trade debtors 131,271 164,016 125,603 164,016
Intercompany debtors - - 639 -
Taxation recoverable 25,797 21,549 25,797 21,549
Prepayments 88,528 74,433 88,528 74,433
Accrued income 262,072 881,518 261,470 881,518
TOTAL DEBTORS 507,668 1,141,516 502,037 1,141,516

Accrued income includes £131,700 (2022: £689,500) of legacy income, where the Hospice has been notified of the legacy but it has not yet been received.

16 INVESTMENTS
Charity and Group 2023 2022
£ £
Market value at 1 April 2022 35,464 25,366
Unrealised (loss)/gain on revaluation 3,850 10,098
MARKET VALUE AS AT 31 MARCH 2023 39,314 35,464
17 CREDITORS
Amounts falling due within one year:
Group Charity
2023 2022 2023 2022
£ £ £ £
Trade creditors 111,376 97,794 106,030 97,794
Amounts owed to subsidiaries - - 153 3
Purchase Tax 1,956 - - -
Social security costs and other taxes 46,125 45,274 46,125 45,274
Other creditors 20,265 19,161 20,265 19,161
Accruals 206,279 183,697 206,279 183,697
Deferred income 2,416 22,959 1,074 22,959
TOTAL CREDITORS 388,417 368,885 379,926 368,888
Deferred income reconciliation
Group Charity
2023 2022 2023 2022
£ £ £ £
Balance at 1 April 2022 22,959 - 22,959 -
Amounts released to the Statement
of Financial Activities		 (22,959) - (22,959) -
Amount deferred in the year 2,416 22,959 1,074 22,959
BALANCE AT 31 MARCH 2023 2,416 22,959 1,074 22,959

55

18 ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Restricted Designated Unrestricted Total
Funds Funds Funds
£ £ £ £
Fund balances at 31 March 2023
are represented by:
Tangible fixed assets including
investments		 - - 1,457,076 1,457,076
Current assets 137,413 1,500,000 3,564,891 5,202,304
Current liabilities - - (388,417) (388,417)
TOTAL 137,413 1,500,000 4,883,550 6,270,963
Restricted Designated Unrestricted Total
Funds Funds Funds
£ £ £ £
Fund balances at 31 March 2022
are represented by:
Tangible fixed assets including
investments		 - - 1,585,616 1,585,616
Current assets 136,646 850,000 2,547,526 3,534,172
Current liabilities - - (368,885) (368,885)
TOTAL 136,646 850,000 3,764,257 4,750,903
2023 Transfers out Transfers in 2023
Designated funds £ £ £ £
Projects (including IT) - - 250,000 250,000
Capital projects 350,000 - 150,000 500,000
Service development - 250,000 250,000
Legacy equalisation 500,000 - - 500,000
TOTAL 850,000 - 400,000 1,500,000

Capital projects – to modernise the Hospice facilities including the administration areas. Legacy equalisation –given the unpredictable nature of legacies, it is considered prudent to designate reserves to protect against any future shortfall.

Projects including IT – to modernise the Hospices IT infrastructure and to include consultancy and onboarding costs for new systems.

Service development – to expand our inpatient and wellbeing offering.

19 OTHER FINANCIAL COMMITMENTS – GROUP OTHER FINANCIAL COMMITMENTS – GROUP
Minimum lease payments under non-cancellable operating leases falling due as follows:
Land and buildings Other
2023 2022 2023 2022
£ £ £ £
Within one year 90,349 107,258 627 875
Within two to five years 60,785 145,048 157 1,094
After five years - - - -
TOTAL AS AT 31 MARCH 2023 151,134 252,306 784 1,969

56

20 RESTRICTED FUNDS

At 1 Income Expenditure Transferred At 31
April to March
2022 unrestricted 2023
£ £ £ £ £
Other specific donations for capital 12,881 12,935 (500) (14,452) 10,864
Garden development 75,000 35,677 - (1,257) 109,420
IT project 5,597 - (5,439) (158) -
Patient wellbeing 22,884 17,994 (28,089) (23) 12,766
Bereavement 4,815 3,100 (4,456) - 3,459
Specific donations for running costs 100 - - (100) -
Hospice inpatient unit 3,691 (2,327) - (800) 564
Lymphoedema clinic 80 - (80) - -
Physiotherapy and occupational
Therapy		 415 - (415) - -
Staff Wellbeing 1,183 - - (143) 1,040
Shops 10,000 - (3,493) (6,507) -
HR and Training - 3,000 - (3.700) (700)
TOTAL 136,646 70,379 (42,472) (27,140) 137,413

The restricted funds hold donations to the charity for the purchase of specific fixed assets or for specified running costs.

Fixed assets purchased in the year are transferred out of restricted funds where all obligations have been satisfied and therefore any restrictions have been discharged. During the year the Hospice purchased a ‘cuddle bed’ which accounted for the majority of the restricted capital funding.

Name of restricted fund

Patient Wellbeing

IT project

Funding received from a number of Trusts and Foundations to support our wellbeing activities including developing our service to reach more people.

Funding received to improve ICT infrastructure from a variety of Trusts and Foundations.

Other specific donations for capital

The majority of this income is fund replacing the beds and mattresses on the ward received from a variety of Trusts, Foundations and Corporate supporters.

Garden development

Capital project to improve the garden project to improve garden areas outside patient rooms in incare received from a variety of Trusts, Foundations and Corporate supporters.

Shops

Funding provided by Darts & Domino’s for retail refurbishments

57

20 RESTRICTED FUNDS (CONTINUED) RESTRICTED FUNDS (CONTINUED)
At 1 April Income Expenditure Transferred
At 31 March
2021 to 2022
unrestricted
£ £ £ £ £
Other specific
donations for capital		 856 45,740 (500) (33,215) 12,881
Garden development - 75,000 - - 75,000
IT project 52,778 (47,181) 5,597
Patient wellbeing 19,362 13,549 (3,795) (6,232) 22,884
Digital improvements 1,081 - - (1,081) -
Bereavement 4,815 - - - 4,815
Covid response - 12,790 (12,790) - -
Specific donations for
running costs
100		 - - - 100
Hospice inpatient unit 3,754 568 (930) 299 3,691
Lymphoedema clinic 80 - - - 80
Physiotherapy 415 - - - 415
Staff Wellbeing 1,183 - - - 1,183
Hospice UK funding - 112,955 (112,955) - -
Coronovirus Job
Retention Scheme		 - 12,267 (12,267) - -
Shops 2,884 10,000 (2,884) - 10,000
TOTAL 87,308 282,869 (146,121) 87,410 136,646

21 PENSION COSTS

Some past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable under these provisions can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both schemes are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies allowed under the direction of the Secretary of State in England and Wales. They are 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, each scheme is accounted for as if it were a defined contribution scheme: the cost to the Hospice of participating in each scheme is taken as equal to the contributions payable to the scheme for the accounting period.

58

THE PRINCE OF WALES HospicE Care. Compassion. Community. The Prince of Wales Hospicg Halfpenny Lane, Pontefract West Yorkshire, WF8 4BG Call 01977 708868 Click pwh.org.uk Email contact@pwh.org.uk The Five Towns Hospic8 Fund Limited Registered Charity number: 514999, Registered Company numb 17978A,Q