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2022-03-31-accounts

EAST CHESHIRE HOSPICE

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Registered company number 01807691 (England and Wales) Registered Charity number 515104

EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

Contents Page
Legal and administrative information 1
Report of the Trustees (incorporating the Strategic Report) 2
Independent Auditors Report 18
Consolidated Statement of Financial Activities 22
Consolidated Balance Sheet 23
Consolidated Cash Flow Statement 24
Notes to the Consolidated Financial Statements 25-37

EAST CHESHIRE HOSPICE

LEGAL AND ADMINISTRATIVE INFORMATION For the year ended 31 March 2022

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Registered Company Number 01807691 (England and Wales)
Registered Charity Number 515104
Constitution Company limited by guarantee
Principle and Registered Office Millbank Drive
Macclesfield
Cheshire
SK10 3DR
Auditors Heywood Shepherd
Chartered Accountants & Registered
Auditors
1 Park Street
Macclesfield
Cheshire
SK11 6SR
Bankers Royal Bank of Scotland PLC
52 Chestergate
Macclesfield
Cheshire
SK11 6BU
Investment Advisors Quilter Cheviot
One Kingsway
London
WC2B 6AN
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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

The Trustees (who are also the directors of the charity for the purposes of the Companies Act 2006) who served during the year were:

Mr S W Spinks Chair Mr J R Lovett Vice Chair Dr D A Maxwell (appointed May-21) Dr J S Beck (retired Sep-21) Mr N L McArthur Vice Chair Mr R Barrow DL MBE Mrs A Ratcliffe (retired Sep-21) Mrs G Crawford (appointed May-21) Mrs N C Sampson (appointed May-21) Mr S J Dickenson (appointed May-21) Mrs E J Stephens Dr L J Hastings (retired Nov-21) Mrs K R Waters (appointed Nov-21) Mr A C Kennedy

All trustees are members of the Company and have no beneficial interest in it. Unless indicated above, they were all trustees at the time that this Report and the attached Financial Statements were approved.

Patrons: Mr Nick Robinson
Prof Alistair BurnsCBE
President: Mr David BriggsCVO MBE KStJ
Vice Presidents: Mr P Bianchi Mr P E Jones
Mr N Bianchi Mrs J C Legh
Mrs F Brereton Miss E McVey MP
Mrs F Bruce MP Mr P Morrissey
Mrs J Clowes Rt Hon G Osborne
Mr H G Fielding Mr D Pollock DL
Mrs C Hayward DL Mr R Raymond
Dr S Hayward Mr D Rutley MP
Mrs J Hilditch Lady A Winterton
Mr M Jones Sir N Winterton
Honorary
Vice President		 Mrs E Keefe
Management Team:
Mrs K Johnston Chief Executive
Dr D Alexander Medical Director
Mrs R Allcock Income Generation Director
Mrs S Dale Director of Quality & Innovation
Ms S Jones Clinical Director
Mrs S Seabourne Finance Director

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

In submitting their Annual Report together with the consolidated financial statements of East Cheshire Hospice and its subsidiary for the year ended 31 March 2022, the Trustees have ensured that all financial statements comply with the Charity Act 2011, the Companies Act 2006, and Accounting & Reporting by Charities: Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102, effective 1 January 2019).

CHARITABLE PURPOSE & PUBLIC BENEFIT

The objects and principal activities of East Cheshire Hospice are to provide palliative care and support to people with life limiting illnesses within the communities of Buxton, Congleton, Handforth, High Legh, High Peak, Knutsford, Macclesfield, Poynton, Wilmslow and the 72 villages and hamlets in between, serving a total population of c.200,000. It does this by:

The Trustees have carefully considered the Charity Commission guidance on public benefit in setting our objectives and planning our services, which are provided free of charge for the benefit of the public. Our mission is to provide the highest quality care and support to the people we serve. Our values and principles can be summarised by the acronym CARE – compassion, association, resourcefulness and excellence.

Our Vision

Our vision is that by 2028, East Cheshire Hospice will be at the centre of a whole-system solution delivering or facilitating high quality, seamless, co-ordinated end of life care to people affected by life limiting illness, ensuring they are prepared, supported and cared for in a place of their choosing and with the minimum of stress and anxiety.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

ACTIVITIES

East Cheshire Hospice provides palliative care and treatment to adults who are nearing the end of their lives, as well as supportive services for their families, carers and loved ones. Our comprehensive range of services is available free of charge to those living in the communities we serve. Our provision is constantly adapting to the changing needs of our communities, including increasing numbers of patients presenting with frailty, dementia and complex comorbidities.

This report covers the year from 1[st] April 2021 to 31[st] March 2022, which was another year of uncertainty and disruptions due to the continued Covid-19 pandemic. We were able to maintain and even enhance our services to support our patients, families and carers despite the challenges and are now adapting to the ‘new normal’ as restrictions ease.

Our services are made up of the following key elements:

Waves of Covid-19 variants throughout the year meant that we had to continuously adapt our inpatient services to meet the prevailing need and ensured that anyone who meets our criteria for referral and whose circumstance would be improved by our care got access to it. We are proud that the IPU facility remained open throughout the pandemic, thanks to the flexibility and dedication of our clinical teams, and that more than 90% of patients were admitted within 48 hours of referral.

We were approached in December 2021 by Cheshire CCG who asked us to offer Inpatient capacity in order to relieve winter bed pressures at Macclesfield District General Hospital. We were able to allocate two beds to palliative patients who were stable and ready to be discharged from acute services. In addition to this, we also opened up Palliative Care Respite Beds this year as one of our key projects.

In a landmark collaboration, this year ECH worked with partners in the NHS and voluntary sector to deliver the Palliative Care in Partnership project which incorporated our Hospice @Home Daytime Service, carer’s breaks, night sitting service and access to specialist bereavement support. The new service (available from 4 April 2022) will support patients in the last 12 weeks of life under the Continuing Healthcare national guidelines and provide planned and highly personalised packages of care. The service will operate during the day and in the evenings, every day of the week including weekends and bank holidays and will integrate seamlessly with our existing out-of-hours Hospice @Home Rapid Response Service.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

as Dementia and Motor Neurone Disease (MND). Services include a living well programme, breathlessness clinic, stimulating activities, complementary therapies and guidance on advanced care planning.

This year, we fully integrated our nurse- and allied healthcare professional-led programmes with a mix of telehealth procedures, assistive digital technologies, in-person 1:1 and group sessions to alleviate symptoms, impart the skills to self-manage conditions and improve the quality of life for patients, their carers and families. The changes we implemented following the return to ‘normal’ activity increased the number of patients and carers supported by our Wellbeing Centre by 20%.

People with Dementia and their carers were more adversely impacted by the pandemic than those in other disease groups, therefore we re-doubled our efforts to offer support using a mix of telehealth procedures and our Covid-19 secure procedures and facilities to meet the needs of patients with dementia and their families. We doubled the capacity of our internationally acclaimed Dementia Carers’ Wellbeing programmes and re-started our Dementia Companions and, by collaborating with the End of Life Partnership, Age UK Cheshire East and local solicitors, we will share our skills and expertise to enhance the wellbeing support provided to people with dementia across Cheshire.

With so many in our community struggling to come to terms with the loss of a loved one during the first two years of the Covid-19 pandemic, we worked with partners across Cheshire to extend our bereavement services ensuring that there is no ‘postcode lottery’ when accessing this much needed support. We piloted the opening of a town centre bereavement facility, however due to the age and location of the property, we were unable to have reliable telephony and internet connections so vital for the delivery of the service. In early 2022, bereavement services were re-located back to the main Hospice site, and this is working well.

We ran an unprecedented range of training courses, conferences and seminars for our workforce of volunteers, staff and colleagues in partner organisations this year, providing them with opportunities to develop themselves as individuals and as professionals. Enormous strides were taken towards our aim of creating a more flexible workforce who are skilled, equipped and adequately compensated to be able to work across whichever service needs them.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

We also continued our focus on staff wellbeing by offering specific resources on maintaining our own mental health, and life-stage courses on Menopause self-management.

45 receptionists welcomed people to the Hospice 7 days per week, and supported business, clinical, and community phone callers and visitors. They worked closely with the team of 12 family liaison volunteers testing visitors, and helped them on and off with PPE. Our 11 gardeners continued to make ECH a beautiful place to be and 13 drivers transported patients to their Sunflower Centre Wellbeing sessions.

Spring 2021 saw the Covid-safe return of Sunflower Centre Assistants, Dementia Buddies, and Complementary Therapists. Our Community Dementia Companions returned to their roles in January 2022, small in number but with another 5 recruited and trained in early 2022.

By the end of 2021, we had 124 Hospice based volunteers safely returned, vaccinated, regularly testing, adapted to their adjusted roles and making a difference to patients, visitors and staff.

Our fundraising supporters and volunteers who had spent 2020 thinking of creative ways to raise funds in a socially distanced way were also able to get back to what they know best, baking cakes, helping out at events, running stalls, holding lunches, and moving online quizzes into real life.

ACHIEVEMENTS AND PERFORMANCE

In addition to our continuous improvement work, the following key projects were identified as priorities to be delivered in 2021/22:

Hospice @Home Expansion

We expanded our Hospice @Home Daytime Service by doubling the number of trained staff in the team providing planned and personally co-ordinated care for c.270 patients who were in the last 12 weeks of life, enabling 77% (220 people) to achieve their preferred place of death. The daytime service operates from 7:30am to 9:00pm every day and is supported by our out-of-hours Rapid Response team who attend patients in crisis at home or who need additional support at night.

Palliative Care Respite Beds

We now care for patients with short term (1-2 weeks) inpatient stays and each year give around 30 families, carers and loved ones much needed respite breaks from their arduous caring responsibilities so that they can return to being the partner, child, sibling, parent or friend of their loved one. We will look to develop this service further as part of our continuous improvement work.

Cheshire-wide Palliative Care in Partnership (PCiP) Project

This year we worked with partners in the NHS as well as those in the private and third sectors to deliver excellence in social care for end-of-life patients across Cheshire. This was a unique collaboration between multiple agencies and organisations and having successfully achieved the delivery of the project goal, it transitioned into a fully-fledged service in April 2022. The service is

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

designed to deliver personalised co-ordinated care for individual patients and will continue to develop as we integrate into the wider healthcare system. This integration is key to ensuring that every health and social care resource in our area is deployed efficiently and effectively to deliver high quality, easily accessible at home care services at the point of need. Whilst, through this project, East Cheshire Hospice is successfully co-ordinating the care for patients in the PCiP service, the next challenge is to provide co-ordinated care for end of life patients, no matter where they are in the healthcare system.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

FINANCIAL REVIEW

The Statement of Financial Activities is set out on page 22, and a summary of the financial results is given below. The group achieved a surplus on net operating activity of £1,849,602 (2020/21: surplus £809,073). The overall result, after allowing for stock market gains and losses on the market value of our investment fund, is a gain of £2,067,508 (2019/20: surplus £1,580,883).

This is another reassuring result, and we remain hugely grateful for the continued and generous support of our local community, NHS England and our local commissioner, Cheshire CCG.

Income Generation Activity

Despite a second year of disruptions and limitations, our Income Generation team had a strong year by adapting plans and innovating how we fundraise. We began to return to a ‘new normal’ as Covid restrictions eased, although some activities are likely to remain forever changed by the lessons of the pandemic. It is also highly likely that our income generation activity will continue to be challenged by the unprecedented economic uncertainty and even geo-political issues drawing focus away from local charitable giving.

Commercial

Our charity shops had an exceptionally strong year, performing at higher levels than pre-pandemic. The new Poynton shop has proven particularly successful, both in terms of revenue production and integration into the local community. We were lucky enough to retain the vast majority of our retail volunteers throughout the various lockdowns of the previous year, who continue to play such a vital role in the success of our shops. We also received a generous donation of more than 1,300 brand new rugs this year, which were sold in our shops, online, and at a series of special sales events.

Our premises on Chestergate were used during the pandemic as a wellbeing centre but are now back in use as a shop. We used the model from Poynton to create a ‘boutique’ style for this space, as we believe this is a good fit for the surrounding area, which boasts several trendy restaurants and vintage shops. Initial reception to the shop opening has been excellent and we are hopeful that it will prove profitable and popular moving forward.

We continue to look for further suitable sites to develop new retail space, particularly in Knutsford and Congleton.

Relationships

Our fundraisers worked hard to maintain our supporter relationships throughout Covid, and it was gratifying to see these efforts result in an upturn of activities as restrictions lifted this year.

Our Christmas Tree Collection is always our biggest fundraising event of the year, and we were delighted that it was able to go ahead on schedule this January. We adapted our ways of working, using different venues to allow a more socially distanced experience for our volunteers, but income was unaffected, and the event once again raised more than £150K. We remain indebted to Richard Raymond and Peter Chapman and their families and friends, without whose hard work and dedication the Collection would not happen.

Other successful community-based activities included our Jingle Bell Jog, a Christmas run for children which involved 48 schools/nurseries across the region and raised almost £82K, and the group known

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

as What Women Want held their annual bingo night, which raised an impressive £10.5K.

Our major donor activity continued to operate throughout the year, successfully reaching its five year target of £775K seed funding for our work to fully co-ordinate care services for all patients at end of life. The Covid-secure online programme of Meeting of the Minds events remained popular, thanks in no small part to the involvement of our Patron, the BBC’s Nick Robinson.

Legacies continue to be a vital, if difficult to predict income stream for East Cheshire Hospice, helping to provide care for around 1 in 3 patients and families. A combination of delays in estate processing during the peak of the pandemic and very sadly a heightened mortality rate meant that 2021/22 set a new record high level of legacy income.

Engagement

Digital engagement continues to be a priority for the team, with email and social media communications often proving the most effective way to stay in touch with our supporters. However, we have taken advantage of the reduction in restrictions to increase our physical engagement activities, hosting our first live event in two years in October 2021. This was a drive-in cinema held at Capesthorne Hall, and represented a significant milestone in our journey out of Covid.

Since then, we have held a successful new event, Pie & Pint, as well as our annual memory walk. We do not anticipate a return to the large-scale events of the past, but it was gratifying to be able to engage directly with supporters once more.

Fundraising complaints

We did not receive any complaints about our fundraising activities during the last year. Our fundraising team abides by the Fundraising Regulator’s Code of Practice and their Fundraising Promise. We strive always to act ethically and responsibly, using best practice when communicating with our supporters, and we strictly adhere to General Data Protection Regulations (GDPR) processes in relation to data usage.

Funding from statutory bodies

Cheshire CCG, our main commissioner worked very collaboratively with us throughout the year. We were delighted to see a 3% increase in our core grant for 2021/22, along with further one-year, non-recurrent funding to provide carer’s breaks for end-of-life patients and also to support winter bed pressures at Macclesfield District General Hospital. The planned restructuring of the CCG into Cheshire & Merseyside Integrated Care Board (ICB) in April 2022 has been delayed and it is not yet clear how this will impact our relationships or funding going forward.

Our contract with Cheshire CCG to provide domiciliary end of life care through the Continuing Health Care funding mechanism proved successful, enabling us to provide care 24/7 in more patients own homes. This service has now been incorporated into the Palliative Care in Partnership Project and we were pleased to sign a contract with Mid Cheshire Hospitals NHS Foundation Trust (MCHT) in December 2021 which allowed us to expand the number of patients we can help.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

During the year, Hospice UK secured a third round of NHS England (NHSE) funding on behalf of all adult hospices in England. This funding was intended to allow hospices to make available bed capacity and community support from December 2021 to March 2022, as the Omicron variant of COVID19 peaked. We are hugely grateful to both Hospice UK and NHSE for the £551,661 received through this grant.

Investment Objectives and Returns

The Trustees have the power to invest in such assets as they see fit. The Hospice maintains a mixture of liquid funds and longer-term stock market investments which act as both an income stream and reserves. Income flows can be hard to predict, and so cash balances over and above those required for immediate operational purposes are invested in a mix of shorter- and longer- term deposits to allow for possible funding gaps. In May 2021 the investment portfolio was switched to the Quilter Cheviot Global Income and Growth Fund for Charities, a Charity Authorised Investment Fund (CAIF), which has a similar risk profile to the Hospice’s previous discretionary fund with the benefit of reduced fees.

Quilter Cheviot’s performance is reviewed quarterly against the Asset Risk Consultants (ARC) benchmark, comprising 50% of the Balanced Index and 50% of the Steady Growth Index. Despite continued turbulent markets, the total return on the portfolio for the year to 31 March 2022 was ahead of the benchmark by 1.8%, ending the year at +9.3%. This resulted in an unrealised gain of £217,906 which has added to reserves in year.

Expenditure

Total costs are in line with last year, showing a small decrease of £38,521, as increases in staffing costs were offset by the reduction in depreciation charge. Staffing is the single largest cost in the Hospice, accounting for 74% of the total, and reflecting that the excellent care our patients and their families receive is reliant on our ability to recruit and retain well trained and highly sought after care staff. Staffing costs increased by £218,820 as we sought to maintain parity of pay with NHS employed colleagues, and catch up with training following the pandemic. Depreciation charges have returned to normal levels following a significant increase last year as the change in depreciation policy was implemented, giving a cost reduction of £309,730 this year. This has more than offset the increased staffing costs.

Our Hospice @Home daytime service costs have increased by £223,044, as the service has grown. The daytime service was successfully launched in April 2021 and has been expanding ever since, with a particular increase from December 2021 as the Palliative Care in Partnership collaborative working arrangements were agreed with Mid Cheshire Hospitals NHS Foundation Trust (MCHT). Recruitment is ongoing for this service, and we expect further cost increases next year.

Following the significant expansion of our Hospice @Home service, it became clear that allocation of support costs across our activity based on floor space was no longer a useful approximation of the resource used in that activity. Support costs are now apportioned on the basis of headcount used in each activity.

We remain grateful to NHSE that they have again picked up the increase in the NHS Pensions employers costs following the 2016 actuarial valuation (effective April 2019). This increase in employers' contributions from 14.3% to 20.6% would otherwise be an additional cost of c.£67,000 to the Hospice. It is not yet clear if or when the Hospice will be expected to take on this cost directly.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

We are mindful as always of the need to use our donated income and resources in the most efficient way, and to provide the maximum benefit for our patients and their families. We continue to review all our activity to ensure we meet the changing needs of the community we serve.

Risk Management

The Board reviews detailed assessments of the risks to which the Charity may be exposed. Comprehensive governance arrangements are in place to oversee risk management in clinical, support services and business administration to ensure that standards are maintained in line with good practice, legislation and accreditation. The processes in place are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

The charity’s reliance on voluntary income to provide 77% of the annual running costs means that the long-term financial sustainability of the Hospice remains one of the key risks identified by the Trustees. The Trustees, however, have maintained a strategy of continuous improvement in relation to service delivery as well as investing in income generation to mitigate this risk as far as possible.

We anticipate that the heightened demand for our services will continue into the post-pandemic era as diagnoses which were delayed due to Covid will now present in greater numbers, with more complexity or in crisis. The key risk in this instance is that services will be periodically overwhelmed if surge capacity is unable to be managed effectively.

The Health Care Act 2022 makes provision for the NHS re-organisation leading to significant changes to the way palliative and end of life services are commissioned. There is a risk that we will be unable to secure sufficient statutory funding to maintain services at current levels.

Reserves

At 31 March 2022, the Hospice held total reserves of £14,422,639, an increase of £2,067,508 over the previous year. Of the total reserves, £4,979,867 relates to restricted reserves, with the main restriction being over the Hospice building. Should the Hospice cease to operate, or the building be sold, all proceeds must be returned to the Secretary of State for Health and Social Care.

Remaining restricted funds relate primarily to the Hospice @Home service – this was being pumpprimed by our Hospice Angels campaign which started in 2016, 12 months before the service became operational. Angels had pledged to provide support for five years whilst a sustainable income stream was built up. We are very pleased to announce that the Palliative Care in Partnership contract, funded by Cheshire CCG will part fund elements of this service. The Trustees agreed to retain the designated Hospice @Home fund until the new statutory contract becomes fully operational. Remaining restricted

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

funds will continue to pay for non-statutory funded elements of this service.

The ECH Ambassador Group refocussed their fundraising efforts through another Hospice Angels campaign which funded the development of a Co-ordinated Care Service linked to Hospice @Home, giving patients, carers and healthcare professionals a single point of contact to meet all their palliative and end of life care needs.

During the year, the Trustees reviewed the reserves policy and set a range within which it was deemed prudent to hold free reserves. This is based on a minimum level required to support the Hospice through two fallow income generation years and sufficient funds to wind up the Hospice in the event of a forced closure, and a maximum level of 12 months’ operating costs. Reserves in excess of the minimum are held to support service development and to meet exceptional circumstances. A number of designated funds were established in year to support the ambitious plans for development of both the Hospice services and its site, which is now over 34 years old. The service development fund will be used to contribute to the development of our dementia services, along with co-ordinated care and Hospice at Home expansion. The Building development Fund has been set up to assist in match funding the remaining 4 phases of the Millbank Drive site renovations, which we hope to advance over the next 5 years should funding become available. The final designated fund is for repairs and equipment and is to ensure we can maintain an aging building in a good state of repair.

The Hospice’s ‘free reserves’ are those unrestricted funds that are freely available to spend on any of the charity’s purposes, and excludes all fixed assets, restricted and designated funds. Free reserves at 31 March 2022 are £5,205,984 compared to £6,361,228 last year.

PLANS FOR FUTURE PERIODS

In this planning period we are carefully re-emerging from the first two crisis years of the Covid 19 pandemic and learning to deliver services and organisational change in a world altered by the experience.

The plans for the coming year will be organised under our perpetual Continuous Improvement workstream and a set of multi-year Change Programmes with specific milestones for each of the financial years to March 2025.

The Health Care Act 2022 redefines how health and social care is delivered in the UK. This represents both a risk but also an unprecedented opportunity for ECH to deliver on its vision to provide fully integrated support for patients and their families facing end of life, and to grow its influence within our local health and care economy. We will invest time and energy into building new networks and being an enthusiastic and flexible partner organisation.

Over the course of the year, we will undertake a governance review to evaluate Board performance against the Charity Commission’s Governance Framework guidance and the Charity Governance Code. We will also have to replace four hugely experienced members of our Board of Trustees who have reached the end of their maximum terms of office. We will seek the best talent our locality has to offer and ensure they undertake a meaningful induction and training programme to guarantee that ECH continues to have a robust governance framework.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

The continuous improvement workstream will manage the organisation’s business as usual service delivery and operational support functions to ensure ECH is developing in the right direction, meeting its charitable objects as well as its fiscal responsibilities.

Income Generation

We anticipate that rising inflation and energy costs will leave households with less disposable income and the desperate humanitarian crisis caused by the war in Ukraine will mean donors have difficult choices to make as to which organisations, if any at all, are the beneficiaries of their charitable giving.

We recognise we will have to work harder to attract diminishing charitable donations and there are fully costed plans and stretching targets in place for each of our nine voluntary income streams, namely Retail, Events, Lottery, Corporate, Community, Legacies, Grants & Trusts, Individual Giving and Major Donors.

The Ambassador Group, which helps ECH to access seed funding for innovation projects has a new fundraising target of £975K to raise by 31 March 2023. This income will fund the expansion of our Sunflower Centre Dementia Wellbeing Programme over the next five years, just one element of the large scale Dementia Change Programme as detailed below.

Change Programmes

There are seven change programmes which will drive the organisation further and faster towards achieving its vision, namely:

  1. Development of Hospice Dementia Services to ensure ECH has the capacity, competency and facilities to meet the emerging needs of people dying from or with dementia in our community. This programme has six workstreams:

  2. Through academic research develop a Dementia End of Life Care Pathway

  3. Undertake a Locality Gap Analysis to ensure any ECH development adds capacity to the Integrated Care System and does not duplicate existing services

  4. Seek to co-produce services using Patient and Carer feedback

  5. Engage with our communities to ascertain future needs for services, support and/or education requirements

  6. Sunflower Centre refurbishment programme to ensure we have the facilities to deliver simultaneous services in a dementia -friendly environment

  7. Major donor fundraising campaign to seed fund innovation in service development

2. Community Engagement to enable ECH to hear and understand the needs of the communities it serves to better develop more responsive, hyper local services and increase income generation and volunteering opportunities within

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

compassionate neighbourhoods.

3. Hospice Sustainability to ensure that ECH remains financially sustainable, meets our communities’ need for high quality care, is the go-to partner organisation for end of life care locally and continues to be the lead innovator in palliative and end of life service provision.

4. Digital Transformation By harnessing the power of our people and synergistic technologies we will improve productivity, enhance users’ experience with ‘smart’ facilities, provide seamless interconnectivity with partner organisations and ensure we stay relevant.

5. Launch Co-ordinated Care Service to be the lead partner in developing and managing a single point of contact/access for Palliative and End of Life Care patients and professionals in Cheshire East Place. Ensuring all Palliative and End of Life Care patients, families and their healthcare professionals will have one number to call, one single source of information and be one multi-agency team working 24/7 across the integrated care system.

6. Facilities Development to ensure our facilities are fit for purpose, efficient to run and safe to use. In year will see the completion of phase two of the site redevelopment plan which includes the Sunflower Centre re-design in line with the associated capital appeal as well as the preparation work required for phase three. We will also undertake necessary major repairs.

7. Data Analytics to integrate all ECH data sources to give Board/SMT and team leaders greater visibility of information for effective monitoring, reporting and timely decision-making to improve patient and family experience and assist with hospice sustainability.

Our strategy is designed to reflect the six ambitions in the National Framework for Palliative Care and informed locally by population health data for East Cheshire and regionally by the Strategic Collaborative Cheshire.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Hospice is a charitable company limited by guarantee, incorporated in England and Wales on 10 April 1984 and registered as a charity on 25[th] April 1984. The company is established under a Memorandum of Association which sets out the objects and powers and is governed under its Articles of Association, as updated in March 2015.

The Nominations and Remuneration Committee is responsible for monitoring and evaluating the trustee recruitment, selection and appraisal process. The governing document requires between 5 and 14 trustees. Board vacancies are identified through regular skills audits and vacancies are filled through a

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

formal recruitment process. The Hospice serves the needs of the broad community, so the Board endeavours to reflect this in the make-up of its membership, whilst meeting the need to have an appropriate mix of professional skills necessary for the day-to-day and longer term running of the Charity. Once appointed to the Board, new trustees undertake an induction programme, supported by an existing member of the Board, and are supplied with a comprehensive information pack detailing the responsibilities of their trusteeship. Trustees are elected to serve for a term of three years, but can seek re-election for two further periods, with a total permitted maximum of nine consecutive years.

The Board meets at least four times a year and is responsible, through its committees, for setting and monitoring progress against the Strategic Plan, Annual Delivery Plans and Key Performance Indicators. These meetings are attended by the Chief Executive and members of the management team, who are responsible for the day-to-day running of Hospice services.

The committees are attended by designated Trustees and management team. The committees make proposals to the Board and have approved terms of reference with specific assigned responsibilities. The committees are:

The Finance and Resources Committee reviews all staff pay on an annual basis to determine whether an inflation pay award can be given. The management team is included in this review and receive any increase on the same basis as all other staff.

The Hospice is a member of The End of Life Partnership, a local charity consisting of 30 partner organisations involved in end of life care issues across Cheshire. It also promotes the delivery of highquality palliative care education in order to ensure all communities are prepared for end of life care. The Hospice does not have any control over this charity, however, along with other hospices within Cheshire, it does provide an annual grant towards its core costs. The Hospice is also a shareholder in the Hospice Quality Partnership, a commercial company set up by hospices nationally to provide more efficient and better-quality procurement in the sector through collective bulk purchasing power.

The Hospice’s wholly owned subsidiary, ECH Trading Limited, was established to run commercial retail activities. It gift aids its profits to the Hospice and all related party transactions are provided in the notes to these accounts.

16

EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2022

RESPONSIBILITIES OF THE BOARD OF TRUSTEES

The Trustees (who are directors of East Cheshire Hospice for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Board to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure for the financial year. In preparing those financial statements, the Board should follow best practice and:

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

In so far as the trustees are aware

AUDITORS

Heywood Shepherd were re-appointed as the charitable company’s auditors and have expressed their willingness to continue in that capacity.

Approved by the Board on 15 September 2022 and signed on its behalf by:

Mr S W Spinks

17

EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2022

Opinion

We have audited the financial statements of East Cheshire Hospice (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheet and the consolidated statement of cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

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

18

EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2022

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

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 trustees

As explained more fully in the trustees’ responsibilities statement set out on page 16, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

19

EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2022

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, are detailed below:

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from errors as they may involve deliberate concealment or collusion. 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 Independent Auditor’s Report.

20

EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2022

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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr N A Kennington (Senior Statutory Auditor) For and on behalf of Heywood Shepherd, Chartered Accountants 1 Park Street Macclesfield Cheshire SK11 6SR

Dated: 15 September 2022

21

EAST CHESHIRE HOSPICE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating and Income & Expenditure account) As at 31 March 2022

Notes
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments
5
Total
Expenditure on:
Raising funds
7
Charitable activity
8
Inpatient services
Day-care and outpatients
Hospice @Home
Family support services
Outreach and education
Total
Net gains/(losses) on
investments
12
Net income/(expenditure)
Transfers between funds
22
Net income/(expenditure) for
the year
Total funds brought forward
Total funds carried forward
22		 2022
Unrestricted
Funds
Restricted
Funds
Total
£
£
£
4,431,324
1,444,943
5,876,267
207,212
-
207,212
1,000,088
9,216
1,009,304
115,602
-
115,602
5,754,226
1,454,159
7,208,385
994,937
2,867
997,804
2,322,098
106,479
2,428,577
487,936
97,710
585,646
364,962
550,491
915,453
293,169
73,379
366,548
51,177
13,578
64,755
4,514,279
844,504
5,358,783
217,906
-
217,906
1,457,853
609,655
2,067,508
625,780
(625,780)
-
2,083,633
(16,125)
2,067,508
7,359,139
4,995,992
12,355,131
9,442,772
4,979,867
14,422,639		 2021
Unrestricted
Funds
Restricted
Funds
Total
£
£
£
3,841,723
1,503,309
5,345,032
87,226
-
87,226
666,530
1,541
668,071
106,048
-
106,048
4,701,527
1,504,850
6,206,377
934,133
2,272
936,405
2,604,379
17,206
2,621,585
663,049
6,436
669,485
214,850
477,559
692,409
363,834
43,478
407,312
69,974
134
70,108
4,850,219
547,085
5,397,304
771,810
-
771,810
623,118
957,765
1,580,883
1,246,924
(1,246,924)
-
1,870,042
(289,159)
1,580,883
5,489,097
5,285,151
10,774,248
7,359,139
4,995,992
12,355,131

The statement of financial activities includes all gains and losses recognised in the year and all amounts derive from continuing activities. The transfer between funds is in respect of movements in fixed assets.

The notes on pages 25 to 37 form part of these accounts.

22

EAST CHESHIRE HOSPICE

BALANCE SHEET

For the year ended 31 March 2022

Notes
Fixed Assets
Tangible assets
11
Investments
12
Current Assets
Stock
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling
due within one year
16
Net Current Assets
Total Assets Less Current Liabilities
Creditors: amounts falling
due after more than one year
Net Assets
Restricted funds
Unrestricted - general funds
- designated funds
-revaluation reserve
Total Funds
22		 Group
2022
2021
£
£
4,273,401
3,721,363
5,997,993
3,746,614
10,271,394
7,467,977
171
441
1,457,992
951,200
3,079,803
4,443,533
4,537,966
5,395,174
386,721
508,020
4,151,245
4,887,154
14,422,639
12,355,131
-
-
14,442,639
12,355,131
4,979,867
4,995,992
5,378,641
5,546,791
4,003,251
808,387
60,880
1,003,961
14,422,639
12,355,131		 Charity
2022
2021
£
£
4,273,401
3,721,363
5,997,995
3,746,616
10,271,396
7,467,979
-
-
1,457,992
951,200
3,079,801
4,443,531
4,537,793
5,394,731
387,368
508,397
4,150,425
4,886,334
14,421,821
12,354,313
-
-
14,421,821
12,354,313
4,979,867
4,995,992
5,377,823
5,545,973
4,003,251
808,387
60,880
1,003,961
14,421,821
12,354,313		 Charity
2022
2021
£
£
4,273,401
3,721,363
5,997,995
3,746,616
10,271,396
7,467,979
-
-
1,457,992
951,200
3,079,801
4,443,531
4,537,793
5,394,731
387,368
508,397
4,150,425
4,886,334
14,421,821
12,354,313
-
-
14,421,821
12,354,313
4,979,867
4,995,992
5,377,823
5,545,973
4,003,251
808,387
60,880
1,003,961
14,421,821
12,354,313
7,467,979
-
951,200
4,443,531
5,394,731
508,397
4,886,334
12,354,313
-
12,354,313
4,995,992
5,545,973
808,387
1,003,961
12,354,313

These financial statements of East Cheshire Hospice (charity number 515104; company number 01807691) were approved by the Board of Trustees on 15 September 2022 and signed on its behalf by:

Mr S W Spinks

Mr A C Kennedy

The notes on pages 25 to 37 form part of these accounts

23

EAST CHESHIRE HOSPICE

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2022

Cash flows from operating activities:
Net cash provided by / (used in) operating activities
Cash flow from investing activities:
Dividends and interest from investments
Proceeds from the sale of equipment
Purchase of property, plant and equipment
Proceeds from the sale of investments
Purchase of investments
Net cash provided by / (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents b/f
Cash and cash equivalents c/f		 2022
£
1,317,600
115,602
-
(763,460)
4,429,790
(6,463,262)
(2,681,330)
(1,363,730)
4,443,533
3,079,803		 2021
£
1,287,549
106,048
11,800
(501,090)
216,897
(229,483)
(395,828)
891,721
3,551,812
4,443,533

Notes to the consolidated cash flow statement

Reconciliation of net income / (expenditure) to net cash flow from operating activities:

Net income / (expenditure) for the reporting period
Depreciation charge
(Gains) / losses on investments
Investment income
Loss / (profit) on sale of fixed assets
Decrease/(increase) in stock
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Investment commissions
Net cash provided by / (used in) operating activities
Analysis of cash and cash equivalents:
Cash in hand
Notice deposits
Total cash and cash equivalents		 2022
£
2,067,508
210,304
(217,906)
(115,602)
1,118
270
(506,793)
(121,299)
-
1,317,600
2022
£
1,329,803
1,750,000
3,079,803		 2021
£
1,580,883
520,034
(771,810)
(106,048)
(4,143)
326
(53,160)
119,285
2,182
1,287,549
2021
£
1,193,533
3,250,000
4,443,533

24

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

1. Summary of Significant Accounting Policies

General Information and Basis of Preparation

The financial statements of the charitable company, which is a public benefit entity under FRS102, 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 (Charities SORP FRS102 – effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments, which are included at market value as modified by the revaluation of certain assets. The financial statements are presented in GB Sterling, which is the functional currency, rounded to the nearest Pound.

Basis of consolidation

These accounts consolidate the results of the charity and its wholly owned trading subsidiary, ECH Trading Limited, on a line by line basis. A separate Statement of Financial Activities has not been presented for the charity as allowed by Section 408 of the Companies Act 2006. The net gain of the Hospice for the year is £2,067,508 (2021: net gain £1,580,883).

Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are donations which the donor has specified are to be used for specific projects. The aim and use of each significant restricted fund is set out in the notes to these accounts.

Incoming Resources and Debtors

All income is recognised in the statement of financial activities when the Hospice has entitlement to the funds, receipt is probable, and the amount can be reliably measured. The following policies are applied to income:

Debtors are recognised at settlement value.

Resources Expended and Creditors

Expenditure is recognised when there is a legal or constructive obligation to a third party, payment is probable, and the amount is reliably measurable. Irrecoverable VAT is allocated as a support cost. Expenditure is classified under the following activity headings:

Grants payable are made to third parties in the furtherance of the Hospice’s charitable objectives. Grants are accounted for when the conditions for payment have been met by the recipient, or in full when no conditions have been set.

Redundancy and termination payments are recognised on an accruals basis as a liability is incurred.

25

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2022

1. Summary of Significant Accounting Policies (continued)

Creditors are recognised where it is probable that a reliably estimated present obligation will result in a payment to a third party. Creditor are recognised at their settlement value.

Support costs

Support costs are those back-office functions that are necessary for the effective running of the Hospice but are not directly involved in providing care. They are allocated between the cost of raising funds and charitable activities as set out in the notes to these accounts.

Tangible Fixed Assets and Depreciation

Tangible fixed assets costing more than £1,000 are capitalised at cost. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, over their estimated useful life as follows:

The land at Millbank Drive is included at market value at the time of donation from the Health Authority.

Investments and cash

Listed investments are stated at market value at the balance sheet date. Unlisted investments are valued at cost. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year. Cash at bank is held to meet the day to day running costs of the Hospice as they fall due.

Stock

Stocks are valued at the lower of cost and net realisable value. Items donated for resale are not included in the financial statements until they are sold.

Leases

Rental payable under operating leases are charged to the statement of financial activities in equal annual instalments over the period of the lease.

Pensions

The Hospice contributes to the NHS pension scheme as allowed under direction of the Secretary of State in England and Wales. This is an unfunded, defined benefit pension scheme and it is not possible to identify the assets and liabilities which are attributable to the Hospice. The scheme is therefore accounted for as defined contribution scheme. The Hospice also operates 2 further defined contribution pension schemes. The assets of all schemes are held separately from those of the Hospice in independently administered funds. Contributions payable for the year are charged to the SOFA in line with the activity carried out by the relevant pension scheme member.

Taxation

The Hospice is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Going Concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of Hospice reserves to be able to continue as a going concern.

26

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

2. Donations and legacies:

Donations
Legacies
Community activity
Grants		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
890,527
679,304
1,569,831
2,148,009
-
2,148,009
508,089
70,396
578,485
884,699
695,243
1,579,942
4,431,324
1,444,943
5,876,267		 Unrestricted
Funds
Restricted
Funds
Total
2021
£
£
£
1,405,555
573,118
1,978,673
1,023,770
600
1,024,370
388,530
200
388,730
1,023,868
929,391
1,953,259
3,841,723
1,503,309
5,345,032
Grants receivable were:
NHS Cheshire CCG – care
NHS Cheshire CCG – drugs
NHS Cheshire CCG – other
NHS Derbyshire CCG – care
Cheshire East Council
Job Retention Scheme
NHSE Covid-19 capacity grant
Other grants and trusts		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
457,211
- 457,211
108,000
- 108,000
215,321
- 215,321
41,286
- 41,286
- 29,818
29,818
1,423
-
1,423
- 551,661
551,661
61,458
113,764
175,222
884,699
695,243
1,579,942		 Unrestricted
Funds
Restricted
Funds
Total
2021
£
£
£
443,894
-
443,894
110,700
-
110,700
168,247
-
168,247
40,476
-
40,476
53,170
-
53,170
49,399
-
49,399
-
864,079
864,079
157,982
65,312
223,294
1,023,868
929,391
1,953,259

The Hospice's main grant agreements are with NHS Cheshire Clinical Commissioning Group (CCG), which makes a contribution to the provision of 24-hour specialist palliative care for patients and families in the East Cheshire region and for drugs. The Hospice has a similar arrangement with NHS Derbyshire CCG as the boundaries of the Hospice's service area extend to parts of Derbyshire.

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

3. Charitable activities:

Local government and NHS service
contracts
Other ancillary income		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
194,529
-
194,529
12,683
-
12,683
207,212
-
207,212		 Unrestricted
Funds
Restricted
Funds
Total
2021
£
£
£
86,241
-
86,241
985
-
985
87,226
-
87,226

27

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

4. Other trading activities:

Events and sponsorship
Lottery income
Shops		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
195,651
9,216
204,867
328,204
-
328,204
476,233
-
476,233
1,000,088
9,216
1,009,304		 Unrestricted
Funds
Restricted
Funds
Total
2021
£
£
£
168,114
1,541
169,655
324,471
-
324,471
173,945
-
173,945
666,530
1,541
668,071

5. Investment income:

Dividends received
Interest received		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
111,754
-
111,754
3,848
-
3,848
115,602
-
115,602		 Unrestricted
Funds
Restricted
Funds
Total
2021
£
£
£
87,167
-
87,167
18,881
-
18,881
106,048
-
106,048

6. Net incoming resources for the year (group and charity):

Net incoming resources for the year (group and charity):
2022 2021
This is stated after charging: £ £
Depreciation (owned assets) 210,304 520,034
Auditor's remuneration (excluding VAT) - charity 8,500 8,000
Auditor's remuneration (excluding VAT) - subsidiary 850 850
Non audit fees (excluding VAT) 4,200 3,975

7. Raising funds:

Donations and legacies:
Staff costs
Events and fundraising costs
Other trading activity:
Staff costs
Events and fundraising costs
Lottery management costs
Lottery prizes
Shop running costs
Investment costs:
Investment managers fee
Support costs		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
266,008
-
266,008
121,129
2,867
123,996
387,137
2,867
390,004
246,746
-
246,746
36,608
-
36,608
17,163
-
17,163
79,592
-
79,592
145,428
-
145,428
525,537
-
525,537
2,307
-
2,307
79,956
-
79,956
994,937
2,867
997,904		 Unrestricted
Funds
Restricted
Funds
Total
2021
£
£
£
274,517
-
274,517
98,889
-
98,889
373,406
-
373,406
271,763
-
271,763
19,724
-
19,724
10,225
-
10,225
78,022
-
78,022
143,553
1,870
145,423
523,287
1,870
525,157
19,955
-
19,955
17,485
402
17,887
934,133
2,272
936,405

28

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

8. Charitable activities:

Inpatient services:
Staff and related costs
Patient consumables – direct
Catering and housekeeping
Property occupation and repairs
Depreciation
Support costs
Day care and outpatients:
Staff and related costs
Patient consumables – direct
Catering and housekeeping
Property occupation and repairs
Depreciation
Support costs
Hospice @Home:
Staff and related costs
Patient consumables – direct
Catering and housekeeping
Property occupation and repairs
Depreciation
Support costs
Family support:
Staff and related costs
Patient consumables – direct
Catering and housekeeping
Property occupation and repairs
Depreciation
Support costs
Outreach and education:
Staff and related costs
Patient care – grant
Support costs		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
1,783,902
- 1,783,902
101,758
-
101,758
44,463
268
44,731
152,836
19,186
172,022
27,826
87,025
114,851
211,313
-
211,313
2,322,098
106,479
2,428,577
327,001
47,536
374,537
3,916
2,532
6,448
12,383
64
12,447
57,926
8,594
66,520
12,465
38,984
51,449
74,245
-
74,245
487,936
97,710
585,646
192,358
526,056
718,414
-
12,609
12,609
953
-
953
14,351
2,136
16,487
3,099
9,690
12,789
154,201
-
154,201
364,962
550,491
915,453
200,543
43,069
243,612
411
408
819
2,410
-
2,410
36,282
5,402
41,684
7,834
24,500
32,334
45,689
-
45,689
293,169
73,378
366,548
18,582
-
18,582
26,884
13,578
40,462
5,711
-
5,711
51,177
13,578
64,755		 Unrestricted
Funds
Restricted
Funds
Total
2021
£
£
£
1,719,401
160
1,719,561
132,209
30
132,239
42,108
-
42,108
109,862
9,643
119,505
280,248
-
280,248
320,551
7,373
327,924
2,604,379
17,206
2,621,585
346,297
816
347,113
1,929
279
2,208
12,692
-
12,692
42,542
2,258
44,800
125,540
-
125,540
134,049
3,083
137,132
663,049
6,436
669,485
142,512
460,585
603,097
-
16,304
16,304
1,415
-
1,415
10,575
-
10,575
31,206
-
31,206
29,142
670
29,812
214,850
477,559
692,409
178,589
41,735
220,324
267
-
267
3,576
-
3,576
26,737
-
26,737
78,899
-
78,899
75,766
1,743
77,509
363,834
43,478
407,312
18,224
-
18,224
45,922
-
45,922
5,828
134
5,962
69,974
134
70,108

29

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

9. Allocation of support costs:

Governance costs
Office support
Accounting and payroll
Information technology
Workforce & volunteers
Marketing
Irrecoverable VAT		 Raising
funds
Inpatient
services
Day care &
outpatients
Hospice
@Home
Family
Support
Outreach/
education
Total
2022
Total
2021
£
£
£
£
£
£
£
£
3,842
10,155
3,568
7,410
2,195
274
27,444
31,518
4,937
13,047
4,584
9,521
2,821
353
35,263
31,770
13,450
35,547
12,490
25,940
7,686
961
96,074
100,721
17,520
46,303
16,269
33,789
10,012
1,251
125,144
139,639
26,335
69,600
24,454
50,790
15,049
1,881
188,109
198,047
9,627
25,442
8,938
18,565
5,501
688
68,761
81,969
4,245
11,219
3,942
8,186
2,425
303
30,320
12,562
79,956
211,313
74,245
154,201
45,689
5,711
571,115
596,226

The apportionment of support costs was reviewed in the year as the significant expansion of the Hospice at Home service meant that floor space used by each activity was no longer a useful approximation of the resource used in that activity. Support costs are now apportioned on the basis of headcount used in each activity.

10. Staff costs and numbers

Staff payroll costs (excluding agency) were:
Salaries
Social security costs
Employers pension – defined contribution
Employers pension – defined benefit		 2022
£
3,254,665
286,619
139,305
154,406
3,834,995		 2021
£
3,129,259
268,484
129,386
149,238
3,676,367

Staff costs includes £nil for redundancy and termination payments (2021: £25,333 to 5 individuals as a result of service reorganisation).

The average monthly number of staffs employed during the year on a full time equivalent and headcount basis was:

Full time equivalent:
Clinical and patient support staff
Support – HR & Volunteer, Finance, Marketing, office and ICT
Income generation staff – retail, lottery and Fundraising
Headcount – all areas:
The number of staff whose emoluments exceeded £60,000 in the year was:
£70,001 - £80,000
£80,001 - £90,000		 2022
No.
68
17
17
102
144
2022
No.
1
1		 2021
No.
66
17
18
101
143
2021
No.
2
-

Pension contributions of £11,132 (2021: £10,849) were made to a defined contribution scheme in respect of these employees.

30

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2022

The total amount of salary and benefits paid to key management personnel, as identified on page 2 (Legal and administrative details – Management Team) was £391,066 (2021: £380,596). None of the Trustees received any remuneration or benefits from an employment with the charity or related entities.

During the year no expenses were paid to or on behalf of Trustees (2021: £nil). Trustees donate their time, talent and skills to the smooth running of the Hospice. As well as their ambassadorial duties, they have supported fundraising events and contributed to the commercial activity of the Hospice as Lottery members and by making donations to the shops. In addition to this, the aggregate unconditional donations from Trustees during the year was £36,093 (2021: £25,820).

The Hospice is grateful for the valuable support of all its volunteers who support the work of paid staff in all areas of the Hospice’s work.

11. Tangible fixed assets (group and charity):

Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Disposals
At 31 March 2022
Net book values
At 31 March 2022
At 31 March 2021		 Freehold land
Plant
& Buildings
& Equipment
Computers
Total
£
£
£
£
5,515,670
673,650
173,055
6,362,375
668,201
92,259
-
763,460
0
(73,603)
(12,473)
(86,076)
6,183,871
695,306
160,582
7,039,759
1,947,807
533,384
159,821
2,641,012
160,201
39,904
10,199
210,304
-
(72,485)
(12,473)
(84,958)
2,108,008
500,803
157,547
2,766,358
4,075,863
194,503
3,035
4,273,401
3,567,863
140,266
13,234
3,721,363

Land and buildings includes £336,000 of non-depreciable land.

31

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

12. Investments:

Managed Portfolio
Market value b/f
Additions
Disposals
Net investment gains/(losses)
Charges paid in the year
Movement in cash deposits
Market value c/f
Historical cost c/f
The portfolio consisted of:
Charity Authorised Investment Fund units
Equity Shares
Fixed Interest
Alternatives
Cash
Unquoted - Hospices Quality Partnership
ECH Trading Ltd - wholly owned subsidiary (see note 13)		 2022
£
3,746,604
6,501,091
(4,429,790)
217,906
-
(37,828)
5,997,983
5,937,103
5,997,983
-
-
-
-
5,997,983
10
5,997,993
2
5,997,995		 2021
£
2,964,389
210,766
(216,897)
771,810
(2,182)
18,718
3,746,604
2,742,643
-
2,602,028
566,755
539,993
37,828
3,746,604
10
3,746,614
2
3,746,616

The investment portfolio, which was previously managed by Advisors on a discretionary basis with the objective of having a balanced, medium risk fund with no investments in tobacco companies, was reinvested into a Charity Authorised Investment Fund (CAIF) during the year.

13. Results of Trading Subsidiary:

ECH Trading Limited (Company number 05688814) is a wholly owned subsidiary of East Cheshire Hospice, operating a retail business selling new goods. The results for the year ended 31 March 2022 are:

Turnover
Cost of sales and administration
Operating profit
Amount gift aided to the charity
Retained in subsidiary
Balance Sheet
Current assets
Current liability - amount owed by / (to) parent
Total net assets		 2022
£
28,581
(17,092)
11,489
11,489
-
£
820
-
820		 2021
£
14,643
(12,042)
2,601
(2,601)
-
£
820
-
820

32

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

14. Stocks:

. Stocks:
Group Charity
2022 2021 2022 2021
£ £ £ £
Merchandise stock 171 441 - -

The amount of stock recognised as an expense in other trading activity during the year for the Group is £9,215 (2021: £4,969) and Charity £nil (2021: £nil).

15. Debtors:

Amounts falling due within one year:
Trade debtors
VAT recoverable
Amount due from subsidiary company
Gift aid recoverable
Prepayments and accrued income		 Group
2022
2021
£
£
567,746
70,817
20,180
58,475
-
-
27,707
68,630
842,359
753,278
1,457,992
951,200		 Charity
2022
2021
£
£
567,746
70,817
20,180
58,475
-
-
27,707
68,630
842,359
753,278
1,457,992
951,200

16. Creditors:

. Creditors:
Amounts falling due within one year:
Grants payable
Trade creditors
Amount due to subsidiary company
Taxation & social security
Accruals
Deferred income
Analysis of deferred income:
Deferred income b/f
Income deferred in the year
Income released in the year
Deferred income c/f		 Group
2022
2021
£
£
15,000
15,000
74,423
68,895
-
-
72,947
61,837
125,767
235,541
98,584
126,747
386,721
508,020
126,747
71,632
350,289
389,802
(378,452)
(334,687)
98,584
126,747		 Charity
2022
2021
£
£
15,000
15,000
74,423
68,895
647
377
72,947
61,837
125,767
235,541
98,584
126,747
387,368
508,397
126,747
71,632
350,289
389,802
(378,452)
(334,687)
98,584
126,747
508,397
71,632
389,802
(334,687)
126,747

Deferred income includes lottery subscription fees and event income received in advance. Lottery income is deferred on receipt and released in the week of the draw. Events income relates to ticket and participator sponsorship monies received in advance of events, which is deferred and released when the event takes place.

33

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2022

17. Pensions:

The Hospice, without obligation, contributes to 3 pension schemes for current employees:

NHS Pension Scheme – an unfunded defined benefit scheme under the direction of the Secretary of State in England and Wales. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. It is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost to the Hospice is taken as the contributions payable to that scheme for the accounting period. The Hospice paid employers contributions of £154,406 (2021: £149,238) on behalf of employees who were existing members of the scheme before joining the Hospice and are therefore able to carry on their membership under the scheme rules. This is based on a rate of 14.3% of pensionable pay, based on HMT Valuation Directions. The pension creditor as at the year end was £20,767 (2021: £21,197).

The schemes are subject to a full actuarial valuation every four years and an accounting valuation every year, carried out by the Government Actuary’s Department to ensure that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2022, is based on valuation data as 31 March 2021, updated to 31 March 2022 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used. The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at March 2016. The results of this valuation set the employer contribution rate payable from April 2021 at 20.6%, and the Scheme Regulations were amended accordingly. The 2016 funding valuation also tested the cost of the Scheme relative to the employer cost cap that was set following the 2012 valuation. There was initially a pause to the cost control element of the 2016 valuations, due to the uncertainty around member benefits caused by the discrimination ruling relating to the McCloud. HMT published valuation directions dated 7 October 2021 (see Amending Directions 2021) that set out the technical detail of how the costs of remedy are included in the 2016 valuation process. Following these directions, the scheme actuary has completed the cost control element of the 2016 valuation for the NHS Pension Scheme, which concludes no changes to benefits or member contributions are required. The 2016 valuation reports can be found on the NHS Pensions website at https://www.nhsbsa.nhs.uk/nhs-pensionscheme-accounts-and-valuation-reports.

While the Employer contribution rate has been set at 20.6%, Employers have only been required to make contributions at 14.3% for both 2019/20 and 2021/21. Had the full rate been in force, the Employer contributions in 2021/21 would have been £222,052 (2021: £214,986), an increase of £67,646 (2021: £65,748).

34

For the year ended 31 March 2022

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

18. Contingent assets:

As at 31 March 2022 the Hospice is aware of 20 ongoing legacy cases (5 pecuniary and 15 residuary) where the value is uncertain as estate accounts are still to be finalised – no amounts have been included in income in relation to these legacies .

19. Capital Commitments:

Capital commitments at the end of the financial year for which no provision has been made are as follows:

2022 2021
£ £
Contracted - 635,097

20. Operating lease commitments:

At the year end, the group and charity had total commitments under operating leases expiring:

Within 1 year
Between 1 and 5 years
In more than 5 years		 Land &
Buildings
Equipment
Total
2022
Total
2021
£
£
£
£
-
-
-
127,083
13,456
142,324
117,700
176,000
-
176,000
198,000
303,083
13,456
318,324
315,770

Operating lease payments made during the year were £82,471 (2021: £63,706).

21. Share capital and company status:

The company is incorporated under the Companies Act 2006. It is limited by guarantee and, therefore, does not have any issued share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

35

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2022

22. Funds:

Unrestricted Funds:
General
Revaluation reserve
Designated Funds:
Service development
Repairs & equipment
Building Development
Restricted:
Property Funds:
Hospice Premises
Proseal Wing Fund
Equipment fund
Hospice garden
Service Funds:
NHSE Covid-19 capacity fund
Hospice @Home services
Single point of access service
Bereavement – Adult & Child services
Day Care services
Dementia services
Chaplaincy services
Other Funds:
Staff Fund
Total Restricted
TOTAL FUNDS		 Balance
b/f
Income
Costs
Transfers
Gains/
(losses)
Balance c/f
£
£
£
£
£
£
5,546,791
5,754,226
(4,194,143)
(2,889,220)
1,160,987
5,378,641
1,003,961
-
-
(943,081)
60,880
808,387
-
(320,136)
1,200,000
-
1,688,251
-
-
-
485,000
-
485,000
-
-
-
1,830,000
-
1,830,000
7,359,139
5,754,226
(4,514,279)
625,780
217,906
9,442,772
3,531,863
-
(160,201)
668,201
-
4,039,863
826,075
-
(30,631)
(693,831)
-
101,613
19,275
60,117
(670)
(48,489)
-
30,233
1,337
1,200
(802)
-
1,735
-
551,661
-
(551,661)
-
-
482,112
509,315
(541,735)
-
449,692
95,089
212,488
(13,375)
-
294,202
35,054
10,974
(46,028)
-
-
5,000
41,947
(17,129)
-
29,818
-
62,500
(32,939)
-
29,561
-
662
(662)
-
-
187
3,295
(332)
-
3,150
4,995,992
1,454,159
(844,504)
(625,780)
-
4,979,867
12,355,131
7,208,385
(5,358,783)
-
217,90614,422,639

Unrestricted Funds:

General fund – this is the accumulation of free reserves. Revaluation Reserve – is required by the Companies Act 2006 and represents the amount by which investments have been revalued from their historic cost.

Designated fund:

Service development – the Hospice @Home designated fund has been incorporated into the service development fund, and a further £1.2m has been designated in year to support ambitious plans in the fields of dementia and single point of access as well as further Hospice at Home expansion

Repairs and equipment – funds have been designated in year to ensure that the fabric of the Millbank Drive building can be maintained to a high standard. Much of the building is over 30 years old and inevitable repairs to areas such as boilers, windows, roof, plumbing and electrics are starting to be required on a rolling basis.

Building Development – in 2018 plans were drawn up to modernise the Millbank Drive site, making it fit for modern services required by our patients and their families. The plans are phased so that they could be done as and when funding is

36

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2022

available. Phase 1, the Proseal Wing, was completed in 2021 and fully funded by a generous donation. This designated fund will be used to match fund capital appeals for the remaining 4 phases, and accounts for c30% of the forecast build cost.

Restricted Funds:

Property Funds - Hospice Premises - this fund represents the net book value of the Hospice's premises at Millbank Drive and includes £300,000 for the land originally donated by the Health Authority. It does not include £36,000 relating to a separate property in Macclesfield. Should the Hospice's activities cease, and the Millbank Drive premises be sold, all the proceeds would be payable to The Secretary of State for Health and Social Care. This obligation is secured by a legal charge over the Hospice's premises at Millbank Drive. The value of the land and buildings is therefore considered to be restricted. The transfers result from movements in the property value arising from capital expenditure and depreciation.

Proseal Wing Fund – These funds were generously provided by £1m donation from Proseal UK, and a further £150,000 from each of The Hargreaves Charitable Trust and the Porto Charitable Trust to fully fund the building of the Proseal Wing to house the community care hub. The transfer in year relates to the certified value of the build completion and will be finalised in late summer 2022.

Property funds - Equipment Fund and Hospice Garden funds represents funds received for the purchase of equipment for all areas of the Hospice, and for the maintenance of the gardens.

Service funds:

The NHSE Covid-19 capacity relates to funding received in year to allow the Hospice to make available bed capacity and community support for people with complex needs in the context of the COVID-19 situation. The Hospice @Home service is supported by a well-received major donor campaign, started in 2017 with 5-year support pledged whilst other funding sources are built up. This work has led into the development of a Single Point of Access project which is now in development phase. Other service funds represent monies received for the provision of specific Hospice services as named.

The Staff Fund - this represents donations given specifically for the benefit of staff and for staff training. The HR manager is responsible for deciding benefits to be provided.

Transfers between funds:

These reflect the fulfilment of restrictions through the purchase of fixed assets with restricted donations, and deprecation of those restricted assets.

Analysis of net assets between funds:

Tangible fixed assets
Investments
Net current assets
Group:
Investments
Net current assets
Charity:		 Unrestricted
Restricted
Total
Funds
Funds
2022
£
£
£
233,538
4,039,863
4,273,401
5,997,993
-
5,997,993
3,211,241
940,004
4,151,245
9,442,772
4,979,867
14,422,639
2
-
2
(820)
-
(820)
9,441,954
4,979,867
14,421,821

23. Related parties:

There are no related party transactions that require disclosure other than those relating to the trading company (note 13).

37