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2023-03-31-accounts

EAST CHESHIRE HOSPICE

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

Contents Page
Legal and administrative information 1
Report of the Trustees (incorporating the Strategic Report) 2
Independent Auditors Report 17
Consolidated Statement of Financial Activities 21
Consolidated Balance Sheet 22
Consolidated Cash Flow Statement 23
Notes to the Consolidated Financial Statements 24-35

EAST CHESHIRE HOSPICE

LEGAL AND ADMINISTRATIVE INFORMATION For the year ended 31 March 2023

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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 2023

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 Dr J Mallon (appointed Sep-22)
Mr R Barrow DL MBE Dr D A Maxwell
Mrs G Crawford Mr N L McArthur Vice Chair
Mr S J Dickenson Mrs N C Sampson
Mrs L Houghton (appointed Sep-22) Mrs E J Stephens (retired Sep-22)
Mr A C Kennedy (retired Sep-22) Mrs K R Waters
Mr J R Lovett Vice Chair

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 Mrs J C Legh
Mr N Bianchi Miss E McVey MP
Mrs F Brereton Mr P Morrissey
Mrs F Bruce MP Mr D Pollock DL
Mrs J Clowes Mr R Raymond
Mrs C Hayward DL Mr D Rutley MP
Dr S Hayward Lady A Winterton
Mr M Jones Sir N Winterton
Mr P E Jones
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 2023

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

In submitting their Annual Report together with the consolidated financial statements of East Cheshire Hospice and its subsidiary for the year ended 31 March 2023, 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 2023

ACTIVITIES

East Cheshire Hospice offers both specialist palliative and specialised end of life care and support to adults who are approaching the final stages of life. We extend this comfort and compassion to assist families, caregivers, and loved ones so that they are better able to cope with this life changing event. Our comprehensive range of services is provided without any cost to those in need. We continuously review our services to meet the evolving needs of our communities, including addressing the growing number of patients with frailty, dementia, and complex comorbidities.

This report encompasses the period from 1 April 2022 to 31 March 2023, which proved to be a challenging year as we navigated the transition from the Covid pandemic and its economic impact. Despite the obstacles, we continued to provide unwavering support to our patients, families, and carers. The evolving landscape within healthcare locally and nationally brings with it a set of new challenges, however, we will use our skills in resilience and adaptability - sharpened by the events of recent years - to improve the healthcare system in which we are an integral part.

Our frontline and support services are made up of the following key elements:

We continued our collaboration with Cheshire and Merseyside ICB this year, who once again asked us to offer inpatient capacity to relieve winter bed pressures at Macclesfield District General Hospital. This service has proven so successful that we have already been asked to extend it to six months from October 2023.

Unfortunately, the repercussions of medical care delays during the Covid pandemic have resulted in a surge of younger patients being admitted to the IPU, whose potential for a cure may have been compromised due to the restrictions and subsequent late diagnoses. The impact of this has been traumatic for those patients, their families and friends, increasing demand for support interventions, however, our dedicated team remain committed to supporting their wellbeing in whatever way is needed. We have taken care to build our team’s capacity to cope by offering psychological and spiritual support, debriefing sessions, professional supervision, opportunities for reflection and resilience training.

This year has seen the successful launch of the Palliative Care in Partnership (PCIP) project. This ground-breaking initiative encompasses a wide range of services aimed at providing exceptional care to patients in their final 12 weeks of life under the Continuing Healthcare national guidelines, including our Hospice @Home Daytime Service, respite for carers, night support, and specialised bereavement support. We collaborate closely with the NHS and other voluntary services, such as Marie Curie, to deliver tailored and personalised care packages. By working together, we strive to maintain the highest standards of support for our patients.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

Although the service has been delivering exceptional care since its launch in October 2017, we acknowledge that there are still unmet needs within this group. As a result, the Hospice Board has approved funding for a third team to further bolster and support the evolution of this service in the future.

In this year of continuing social and economic challenges, we continued to prioritise the well-being of our staff by offering specific resources designed to support their mental health, including training a team of Mental Health First Aiders to provide peer to peer support.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

ACHIEVEMENTS AND PERFORMANCE

In addition to our continuous improvement work, seven change programmes were prioritised in the year 2022-23 to drive the organisation further and faster towards achieving its vision. These were:

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

We made significant progress this year in enhancing our dementia care with the appointment of a second specialist dementia nurse, who added invaluable knowledge and expertise in mental health care for older people to our skill mix. This extra resource meant we were able to increase capacity in our Sunflower Centre Dementia Carer Wellbeing Programme, doubling the available places, and reducing the waiting list for this heavily oversubscribed Programme from six months to three months. As the demand for this service continues to out-strip our capacity to accommodate it fully, a further increase in capacity is planned for 2023-24.

We also introduced Advanced Care Planning clinics, specifically designed for families living with dementia. These clinics provide tailored support and guidance to help families navigate the challenges associated with the care of a loved one with dementia. And, on a more joyful note, we were able to expand uplifting initiatives such as our regular Singing Together events, which proved so popular that it necessitated relocation to a larger community hall.

Lastly, this year saw the completion of ECH commissioned research conducted by the Universities of both Manchester and Liverpool. Dr Alessandro Bosco and his team from University of Manchester sought to find and assess worldwide best practice in care for people with Dementia at end of life to better inform our practice. And Professor Lynn Sudbury-Riley and her team from University of Liverpool studied the experiences of patients and carers to identify the most effective areas for ECH to invest in future dementia care services. Both studies will serve as valuable guides in shaping our plans and initiatives.

2. Community Engagement work has continued this year, to ensure that ECH hears and understands the needs of our community, to better develop services and increase income generation and volunteering opportunities.

We have launched a Friends and Family forum, made up of those who have lost loved ones in our care. This forum met regularly throughout the year, offering us valuable insights on various subjects, including ways of enhancing our services and how to initiate certain fundraising activities. Recognising the significance of the feedback received from this forum, as well as from patient feedback forms, we have implemented a structured system to document, evaluate, and address the information generated. It is crucial that we appropriately act upon the feedback to continually improve our services.

3. Hospice Sustainability continues to be a priority, and as evidenced in this report, the financial situation for the Hospice remains strong, thanks to successful income generation and unprecedented levels of legacy gifts. However, we are mindful that we have ambitious plans and face significant economic headwinds in terms of voluntary income streams, with no prospect of our statutory funding increasing in line with headline inflation or agreed NHS Agenda for Change pay rates. We remain alert to these funding challenges and will always seek opportunities to use our resources as efficiently as possible.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

We have established a staff-led Environmental Sustainability Group this year to help to promote and consolidate the Hospice’s efforts towards carbon neutrality. The committee has led on a number of projects, including education on power wastage and the plans for new solar panels on the Hospice roof. We were delighted to receive an award from East Cheshire Chamber of Commerce for the work of this group.

Our efforts in being seen as a trusted and effective partner organisation bore fruit this year with the successful delivery of the Palliative Care in Partnership project, as previously referred to. We are in on-going discussions with local healthcare services on the further development of a Single Point of Co-ordination (SPOC) and connecting with colleagues and organisations across the health and social care system to reduce crisis, especially to avoid unnecessary admissions to hospital.

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

This year, we have migrated all our files to Microsoft Teams and OneDrive, to improve security, collaboration and ease of use. We continue our work to decommission our onsite servers and move completely to Cloud storage. We have also upgraded several of our internal processes and systems, to integrate latest technology and improve efficiency.

Externally, we are involved in an ongoing collaborative project to research and integrate all partner patient record systems in line with the Cheshire East Place and National NHS England Improvements Digital Transformation initiatives, across the Cheshire & Merseyside ICB footprint.

5. Launch Co-ordinated Care Service we have persisted in taking the lead role in developing a single point of contact/access for Palliative and End of Life Care patients and professionals in Cheshire East Place. We acknowledge that the NHS, especially after significant mergers in Cheshire, is dealing with many more changes in personnel, governance structures, system crisis mitigation and Government imposed targets, reducing its capacity to implement new initiatives. Despite this, we were able to work with colleagues and other partners to deliver some key milestones, however, we were unable to fully integrate and launch the service this year. We remain committed to launching the service in 2023-24 in the best interests of patients and families.

6. Facilities Development will ensure our facilities are fit for purpose, efficient to run and safe to use. We have worked fastidiously through our facilities maintenance programme, repairing and improving where necessary to bring our 35-year-old main site building up to current standards. There was also a significant amount of preparation work required to progress major improvements such as the Sunflower Wellbeing Centre Refurbishment and bedroom upgrades which will come to fruition in 2023-24.

7. Data Analytics aims to integrate all ECH data sources to give leaders greater visibility of information for effective monitoring, reporting and timely decision-making. This year, we have successfully implemented the Incidents and Risk modules of the Vantage IT system to assist our continuous improvement efforts.

We have established a working group who are reviewing our clinical database, EMIS, to allow us to access the data stored and generate strategic reports, which can then be used to understand the impact of our services and increase the efficient allocation of resources.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

FINANCIAL REVIEW

The Statement of Financial Activities is set out on page 21, and a summary of the financial results is given below. The group achieved a surplus on net operating activity of £1,795,080 (2021/22: surplus £1,849,602). The overall result, after allowing for stock market gains and losses on the market value of our investment fund, is a gain of £1,284,623 (2021/22: surplus £2,067,508).

This is another humbling result for the Hospice, benefiting as we did from a record year in legacies and a large one-off donation. We remain hugely grateful to the continued and generous support of our local community, and our local commissioners.

Income Generation Activity

At the beginning of the year, we encountered various obstacles in our efforts to generate income due to the economic repercussions of Covid, which resulted in a sustained cost of living crisis. Additionally, the critical situation in Ukraine prompted a completely understandable but significant redirection of charitable donations, both in physical and financial form, away from local causes. Nevertheless, thanks to the unwavering support of our community, including our generous legators, and the dedication and commitment from our team, we ended the year in a much better position than we had anticipated.

Commercial

Despite the substantial diversion of donations to Ukraine during the early part of the year, our retail shops concluded the year on a positive note, achieving income that was only slightly below their original budget. This success can be attributed to the dedication and hard work of our remarkable team, which includes our staff and dedicated volunteers at the shops, and those assisting with the furniture van. They have diligently capitalised on every opportunity to sustain the necessary levels of income.

Our second ‘boutique’ style shop was opened in May in our Chestergate premises and has proven to be hugely successful, capitalising on the gentrification of the Chestergate area and maximising its impact through clever use of social media and influencers. The rest of the shops are also utilising social media effectively to sell specific items, often furniture, and to encourage footfall in the shops.

We continue to look for new retail premises in both Knutsford and Congleton, but although there have been a few promising prospects we have yet to find the perfect premises for our next shop. We will continue to monitor the markets in both towns.

Fundraising

Our fundraising activities have changed significantly in recent years, in part due to permanent societal changes brought about by the Covid pandemic. The team was restructured this year to better reflect the needs of our supporters, including merging events and community activity into one larger team.

Community activities thankfully returned en masse to the calendar this year, with support groups such as our Quiz Night team, What Women Want and Art Fair all holding successful events. The Art Fair was a particular highlight, taking place in Macclesfield Town Hall for 10 days over the Jubilee weekend in May and generating more than £60k. We also held several Hospice led events this year, including a Hospice-to-Hospice Hike, Fashion on the Edge and a Winter Ball.

Another noteworthy advancement within the team was the evolution of the Individual Giving income stream, which was expanded in September. Since then, our team has dedicated their efforts to collaborating closely with our clinical colleagues to offer assistance and support to individuals raising funds in memory of their departed loved ones. This collaborative partnership has yielded numerous

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

tangential advantages and stands out as one of the most positive outcomes of the year.

By Christmas 2022 we were relieved to see a semblance of the usual flurry of activity return, with 34 schools and nurseries taking part in our Elf Run and more than 6,600 trees recycled as part of our Christmas Tree Collection. Notably, 2023 was the 25[th] anniversary of the creation of the Collection by Pete Chapman and his family, who have inspired dozens of other hospices across the UK to launch their own collections and have raised a staggering £1.65m for East Cheshire Hospice.

Our Major Donor activity continues to achieve remarkable success and is currently directing its efforts towards generating income for our specialised dementia services. We continued to hold virtual Meeting of the Minds events throughout the year, and were also able to host several physical events, including a summer afternoon at Peover Hall and our annual Christmas Concert at Capesthorne Hall. We are immensely thankful for the remarkable generosity of our long-time supporter, Mr Michael Oliver DL OBE, who made an extraordinary donation of £800k this year to support our Hospice @Home services. This substantial contribution will make a profound difference in the lives of those we serve, and we are truly grateful for his kindness and compassion.

Legacies continue to be a vital income stream for East Cheshire Hospice, helping to provide care for around 1 in 3 patients and families. Although this kind of income is highly unpredictable, we were humbled to receive our greatest value of legacy gifts ever this year, reaching more than £2.5m.

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, was restructured in July 2022 into the Cheshire & Merseyside Integrated Care Board (ICB) and Cheshire East Place. We were grateful for the way the transition into the new entities was managed throughout the year. We received seed funding from the North West Strategic Clinical Network to support the creation of a hospice provider collaborative working across Cheshire and Merseyside, and for the second year in a row we were able to provide additional capacity to the system with a grant from the Home First Initiative to support winter bed pressures at Macclesfield District General Hospital.

Through the Palliative Care in Partnership contract, signed in December 2021 with Mid Cheshire Hospitals NHS Foundation Trust (MCHT) who hold the primary contract with Cheshire & Merseyside ICB, we continued to meet our obligations. We have now completed a full year of activity, significantly expanding our at home end of life care, enabling us to provide care 24/7 in more patients own homes. The income for this service is included in Charitable activities – NHS service contracts.

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 2022 the investment portfolio was switched to the Quilter Cheviot Global

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

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. Returns were turbulent in the year, resulting in an unrealised loss of £510,457 which has reduced the in-year surplus. The total return on the portfolio for the year to 31 March 2023 was slightly behind the benchmark by 1.3%, ending the year at -5.5%. The performance has been reviewed by our specialist advisory group and Trustees remain confident in the investment holding.

Expenditure

Total costs increased by £1,096,440 (20%) in the year to £6,455,223, of which £304,163 relates to our Hospice at Home service. The total increase was a significant but planned increase, due to Hospice at Home expansion as the Palliative Care in Partnership contract fully embedded, and fundraising activities ramped back up as we came out of the pandemic. Staffing is the single largest cost in the Hospice, increasing in year to 75% of total costs, and reflecting that the excellent care our patients and their families receive is reliant on our ability to recruit and retain experienced and highly sought-after care staff. Staffing costs increased by £809,937 following an increase in clinical staff numbers, as well as maintaining parity of pay with NHS employed colleagues following well-publicised national industrial action.

We expect costs to increase further in 2023/24 following a 5% pay increase in April 2023 and Hospice at Home expansion adding a third at home care team to increase overall capacity and a fourth team giving targeted at home care to patients and families in Knutsford and District.

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 carefully evaluates the potential risks that the Charity may face. Robust governance systems are in place to supervise risk management across clinical, support services, and business administration, ensuring that high standards are upheld in accordance with best practices, laws, and accreditation requirements. The implemented processes aim to offer reasonable assurance, though not absolute, against significant errors or losses. These include the following:

The Trustees recognise that the Hospice's reliance on voluntary income to cover the majority of annual operating costs creates a financial sustainability risk. In response, the trustees have adopted a strategy

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

of ongoing enhancement in service delivery and have made investments in income generation to mitigate this risk to the greatest extent feasible.

We expect that the increased demand for our services will persist during the post-pandemic period, as delayed diagnoses resulting from Covid will now arise in larger numbers of end-of-life patients, with greater complexity or urgency. The primary risk in this scenario is the potential overload of services if effective management of surge capacity cannot be ensured.

The Health & Social Care Act of 2022 includes provisions for the reorganisation of the NHS, resulting in significant alterations to the commissioning of palliative and end-of-life services. There is a potential risk that we may face challenges in obtaining adequate statutory funding to sustain our services at their current levels.

Reserves

At 31 March 2023, the Hospice held total reserves of £15,707,262, an increase of £1,284,623 over the previous year. Total reserves are a mix of restricted - relating to fixed assets or donor intentions, designated – where Trustees have set aside funds for specific projects, and free reserves – used by the charity to manage its in year cash flow. See note 22 on page 36 of these accounts.

Restricted Reserves

Of the total reserves, £5,952,315 is restricted mainly in respect of the Hospice building (£3.9m). 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.

The remaining restricted funds held at the year-end are in advance of the respective projects starting in 2023/24 and relate primarily to the Hospice @Home service (£1.1m). We were hugely grateful to Mr Michael Oliver OBE, DL, who generously donated £800,000 in the year to fund the much-needed elements of this service that are not supported by statutory funding from the Palliative Care in Partnership NHS contract.

The Single Point of Access Project restricted fund (£368k) has been retained to support the commencement of the Co-ordinated Care Service in 2023/24. The ECH Ambassador Group has begun to receive funds into their Hospice Angels campaign to support the development of dementia services (£204k), and grant bids have been successful to part-fund the redevelopment of the Sunflower Wellbeing Centre (£228k).

Designated Reserves

The Trustees have designated funds to support service development, facilities maintenance and building development. These will help to support ambitious plans in the fields of dementia, single point of access, and further Hospice at Home expansion, as well as support the maintenance and phased redevelopment of the Millbank Drive site to make it fit for modern services.

Free Reserves

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 2023 are £5,885,006 compared to £5,205,984 last year.

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.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

PLANS FOR FUTURE PERIODS

The re-organisation of the NHS in England as described in the Health and Social Care Act 2022 is taking shape within our new region directed by the Cheshire & Merseyside Integrated Care Board and at a local level (Cheshire East Place) by the Cheshire East Partnership. Engaging with both these entities and with the other participating organisations as well as the myriad but necessary workstreams, has required and will continue to require the establishment of many new relationships and formal and informal collaborations. We are fortunate that having made meaningful connections in previous years, East Cheshire Hospice is in the best position possible to be welcomed as a trusted and effective partner within the newly integrated system. Opportunities for the development of future services and further integration are ones which the Hospice will make the most of in the best interests of those who are facing the challenges of a life limiting illness.

To ensure high quality palliative and end of life care is accessible to everyone who needs it and that services are funded equitably using a sustainable model, we have joined forces with the ten other adult hospices and one children’s and young people’s hospice to form the Cheshire & Merseyside Hospice Provider Collaborative. Our objective is to use our collective voice, ingenuity and professionalism to raise standards, awareness and funds so that there is no postcode lottery for palliative and end of life care in Cheshire & Merseyside.

East Cheshire Hospice’s strategy is designed to reflect the six ambitions in the National Framework for Palliative Care and informed regionally by the Cheshire & Merseyside Joint Forward Plan and locally by The Joint Local Health and Wellbeing Strategy for the population of Cheshire East 2023-2028 .

Our plans for the coming year will deliver enhanced care to more patients and families and palliative and end of life expertise and support to the wider system. Operationally our plans will be organised under our perpetual Continuous Improvement workstream and a set of multi-year Change Programmes with specific milestones for the year to March 2024, as detailed below.

Continuous Improvement Workstream

This 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. Last year we had made significant progress on three of our seven change programmes, so much so that we will incorporate digital transformation, data analytics and community engagement into the Continuous Improvement Workstream for the financial year 2023-24 onward.

Income Generation

Charitable giving has been adversely affected by the stagnating economy, rising interest rates and an inflation rate that is proving more difficult to bring down than was hoped. Whilst we are grateful that our donors have remained loyal and in particular those in our community who leave us legacies, the shape of our income generation activities has changed since the pandemic, and we will have to adapt our offer to meet prevailing donor wants and needs.

For example, we have merged our mass participation event activity into our community income stream to offer many more, but smaller hyper local events. We recognise we will have to work harder to attract diminishing charitable donations and have again created fully costed plans with stretching targets in place for each of our eight voluntary income streams, namely Retail, Lottery, Corporate, Community & Events, Legacies, Grants & Trusts, Individual Giving and Major Donors.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

The Ambassador Group, which helps the Hospice to access seed funding for innovation projects will strive to reach its fundraising target to 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 four 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, competencies and facilities to meet the emerging needs of people dying from or with dementia in our community. This programme has six workstreams:

2. 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. As part of our strategy to support anyone who needs our care wherever they want to receive it, we will be adding two new teams into Hospice @Home, one of which will be working exclusively in Knutsford and surrounding areas to address the lack of access to specialised care in this area.

3. Co-ordinated Care Service to fully integrate this service with the wider health and care system by hosting and leading a single point of co-ordination for Palliative and End of Life Care patients, their families and healthcare professionals in Cheshire East Place. Ensuring everyone 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 to meet their needs and avoid crisis.

4. Facilities Development to ensure our facilities are fit for purpose, efficient to run and safe to use, we are working through a five-phased redevelopment plan estimated to complete in 2028. In early April 2023, the Trustee Board approved the use of reserves to fund a £1.3m refurbishment of the Sunflower Wellbeing Centre designed to make the facility more accessible for those with any form of dementia and to increase the capacity to deliver more services. This phase is due to complete in January 2024.

We will implement our plans to enhance and revitalise our Inpatient Unit bedrooms and family facilities. Our aim is to create a modern and inviting atmosphere that will not only appeal to patients

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

and their families but also prioritise dementia-friendly designs. We will also undertake necessary major repairs and seek to further reduce our carbon footprint with every decision we take.

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 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 receives any increase on the same basis as all other staff.

The Hospice is a member of The End of Life Partnership, a local charity involved in end of life care issues across Cheshire. It also promotes the delivery of high-quality 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.

15

EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2023

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 14 September 2023 and signed on its behalf by:

Mr SW Spinks

16

EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2023

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 2023 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).

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

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.

17

EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2023

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

18

EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2023

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.

19

EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2023

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: 14 September 2023

20

EAST CHESHIRE HOSPICE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating and Income & Expenditure account) As at 31 March 2023

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
13
Net income/(expenditure)
Transfers between funds
22
Net income/(expenditure) for
the year
Total funds brought forward
Total funds carried forward
22		 2023
Unrestricted
Funds
Restricted
Funds
Total
£
£
£
4,620,033
1,403,019
6,023,052
755,420
-
755,420
1,239,309
9,494
1,248,803
223,028
-
223,028
6,837,790
1,412,513
8,250,303
1,273,652
-
1,273,652
2,639,699
95,668
2,735,367
651,889
59,902
711,791
963,194
256,422
1,219,616
360,424
26,403
386,827
120,635
7,335
127,970
6,009,493
445,730
6,455,223
(510,457)
-
(510,457)
317,840
966,783
1,284,623
(5,665)
5,665
-
312,175
972,448
1,284,623
9,442,772
4,979,867
14,422,639
9,754,947
5,952,315
15,707,262		 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

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 24 to 35 form part of these accounts.

21

EAST CHESHIRE HOSPICE

BALANCE SHEET For the year ended 31 March 2023

Group Charity
2023 2022 2023 2022
Notes £ £ £ £
Fixed Assets
Tangible assets 12 4,193,638 4,273,401 4,193,638 4,273,401
Investments 13 5,487,536 5,997,993 5,487,538 5,997,995
9,681,174 10,271,394 9,681,176 10,271,396
Current Assets
Stock 15 694 171
Debtors 16 940,828 1,457,992 940,828 1,457,992
Cash at bank and in hand 5,766,719 3,079,803 5,766,717 3,079,801
6,708,241 4,537,966 6,707,545 4,537,793
Creditors: amounts falling
due within one year 17 682,153 386,721 682,277 387,368
Net Current Assets 6,026,088 4,151,245 6,025,268 4,150,425
Total Assets Less Current Liabilities 15,707,262 14,422,639 15,706,444 14,421,821
Creditors: amounts falling
due afer more than one year
Net Assets 15,707,262 14,442,639 15,706,444 14,421,821
Restricted funds 5,952,315 4,979,867 5,952,315 4,979,867
Unrestricted - general funds 5,860,315 5,378,641 5,859,497 5,377,823
- designated funds 3,894,632 4,003,251 3,894,632 4,003,251
- revaluation reserve 60,880 60,880
Total Funds 22 15,707,262 14,422,639 15,706,444 14,421,821

These financial statements of East Cheshire Hospice (charity number 515104; company number 01807691) were approved by the Board of Trustees on 14 September 2023 and signed on its behalf by:

Mr S W Spinks

Mr N L McArthur

The notes on pages 24 to 35 form part of these accounts

22

EAST CHESHIRE HOSPICE

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2023

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		 2023
£
2,605,761
223,028
-
(141,873)
-
-
81,155
2,686,916
3,079,803
5,766,719		 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

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		 2023
£
1,284,623
221,636
510,457
(223,028)
-
(523)
517,164
295,432
-
2,605,761
2023
£
1,766,719
4,000,000
5,766,719		 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

23

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2023

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 £1,284,623 (2022: net gain £2,067,508).

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.

24

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2023

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.

25

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2023

2. Donations and legacies:

Donations
Legacies
Community activity
Grants		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
827,305
1,072,207
1,899,512
2,562,676
- 2,562,676
445,817
21,977
467,794
784,235
308,835
1,093,070
4,620,033
1,403,019
6,023,052		 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
Grants receivable were:
Cheshire & Merseyside ICB – care
Cheshire & Merseyside ICB – drugs
Cheshire & Merseyside ICB – other
Derbyshire ICB – care
Cheshire East Council
Job Retention Scheme
NHSE Covid-19 capacity grant
Other grants and trusts		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
479,933
-
479,933
108,000
-
108,000
96,372
35,000
131,372
41,286
-
41,286
-
-
-
-
-
-
-
-
-
58,644
273,835
332,479
784,235
308,835
1,093,070		 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

The Hospice's main grant agreements are with Cheshire & Merseyside Integrated Care Board (ICB), following the integration of the NHS Cheshire and NHS Merseyside Clinical Commissioning Groups (CCG) during the year. The ICB 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 Derbyshire ICB as the boundaries of the Hospice's service area extend to parts of Derbyshire.

3. Charitable activities:

Local government and NHS service
contracts
Other ancillary income		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
723,567
-
723,567
31,853
-
31,853
755,420
-
755,240		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
194,529
-
194,529
12,683
-
12,683
207,212
-
207,212

4. Other trading activities:

Events and sponsorship
Lottery income
Shops		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
399,590
9,494
409,084
301,006
-
301,006
538,713
-
538,713
1,239,309
9,494
1,248,803		 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

26

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2023

5. Investment income:

Investment income:
Dividends received
Interest received		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
183,231
-
183,231
39,797
-
39,797
223,028
-
223,028		 Unrestricted
Funds
Restricted
Funds
Total
2022
£
£
£
111,754
-
111,754
3,848
-
3,848
115,602
-
115,602

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

This is stated after charging:
Depreciation (owned assets)
Auditor's remuneration (excluding VAT) - charity
Auditor's remuneration (excluding VAT) - subsidiary
Non audit fees (excluding VAT)		 2023
£
221,636
9,400
1,000
4,685		 2022
£
210,304
8,500
850
4,200

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
2023
£
£
£
321,669
-
321,669
219,733
-
219,733
541,402
-
541,402
306,621
-
306,621
90,484
-
90,484
12,412
-
12,412
79,600
-
79,600
145,473
-
145,473
634,590
-
634,590
-
-
-
97,660
-
97,660
1,273,652
-
1,273,652		 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
997,804

27

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2023

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
2023
£
£
£
2,046,503
1,944
2,048,447
111,484
-
111,484
51,366
1,078
52,444
131,894
5,621
137,515
33,376
87,025
120,401
265,076
-
265,076
2,639,699
95,668
2,735,367
481,868
15,991
497,859
6,474
571
7,045
14,333
257
14,590
50,555
2,518
53,073
14,951
38,984
53,935
83,708
1,581
85,289
651,889
59,902
711,791
736,773
246,106
982,879
20,703
-
20,703
1,116
-
1,116
12,542
626
13,168
3,717
9,690
13,407
188,343
-
188,343
963,194
256,422
1,219,616
259,488
320
259,808
1,201
-
1,201
2,821
-
2,821
31,712
1,583
33,295
9,397
24,500
33,897
55,805
-
55,805
360,424
26,403
386,827
20,850
3,460
24,310
92,809
3,875
96,684
6,976
-
6,976
120,635
7,335
127,970		 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

28

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2023

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
2023
Total
2022
£
£
£
£
£
£
£
£
5,079
13,785
4,354
9,795
2,902
363
36,278
27,444
5,838
15,845
5,004
11,258
3,336
417
41,698
35,263
14,824
40,239
12,707
28,591
8,471
1,059
105,891
96,074
26,818
72,792
22,987
51,720
15,325
1,916
191,558
125,144
31,409
85,252
28,502
60,574
17,948
2,243
225,928
188,109
11,701
31,760
10,029
22,566
6,686
836
83,578
68,761
1,991
5,403
1,706
3,839
1,137
142
14,218
30,320
97,660
265,076
85,289
188,343
55,805
6,976
699,149
571,115

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		 2023
£
3,921,417
377,790
171,950
173,775
4,644,932		 2022
£
3,254,665
286,619
139,305
154,406
3,834,995

Staff costs includes £nil for redundancy and termination payments (2022: £nil).

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:		 2023
No.
75
19
18
112
144		 2022
No.
68
17
17
102
144

The number of staff whose emoluments exceeded £60,000 in the year was:

2023 2022
No. No.
£70,001 - £80,000 0 1
£80,001 - £90,000 2 1

Pension contributions of £11,783 (2022: £11,132) were made to a defined contribution scheme in respect of these employees.

29

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2023

The total amount of salary and benefits paid to key management personnel, as identified on page 2 (Legal and administrative details – Management Team) was £422,091 (2022: £391,066). 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 (2022: £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 £48,982 (2022: £36,093).

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. Pensions:

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

Accounting valuation - A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. 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 2023, is based on valuation data as 31 March 2022, updated to 31 March 2023 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.

Full actuarial valuation - The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers. The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019 to 20.6% of pensionable pay. The actuarial valuation as at 31 March 2020 is currently underway and will set the new employer contribution rate due to be implemented from April 2024.

During the year, the Hospice paid employers contributions of £173,775 (2022: £154,406) 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

30

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2023

Directions. The pension creditor as at the year end was £24,961 (2022: £20,767). While the Employer contribution rate has been set at 20.6%, Employers have only been required to make contributions at 14.3% for both 2022/23 and 2021/22. Had the full rate been in force, the Employer contributions in 2022/23 would have been £249,907 (2022: £222,052), an increase of £76,132 (2022: £67,646).

12. Tangible fixed assets (group and charity):

Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
Net book values
At 31 March 2023
At 31 March 2022		 Freehold land
Plant
& Buildings
& Equipment
Computers
Total
£
£
£
£
6,183,871
695,306
160,582
7,039,759
48,947
80,310
12,616
141,873
-
(37,376)
(65,282)
(102,658)
6,232,818
738,240
107,916
7,078,974
2,108,008
500,803
157,547
2,766,358
160,200
55,252
6,184
221,636
-
(37,376)
(65,282)
(102,658)
2,268,208
518,679
98,449
2,885,336
3,964,610
219,561
9,467
4,193,638
4,075,863
194,503
3,035
4,273,401

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

13. Investments:

Managed Portfolio
Market value b/f
Additions
Disposals
Net investment gains/(losses)
Movement in cash deposits
Market value c/f
Historical cost c/f
The portfolio consisted of:
Charity Authorised Investment Fund units
Unquoted - Hospices Quality Partnership
ECH Trading Ltd - wholly owned subsidiary (see note 14)		 2023
£
5,997,983
-
-
(510,457)
-
5,487,526
5,937,103
5,487,526
10
5,487,536
2
5,487,538		 2022
£
3,746,604
6,501,091
(4,429,790)
217,906
(37,828)
5,997,983
5,937,103
5,997,983
10
5,997,993
2
5,997,995

31

NOTES TO THE ACCOUNTS For the year ended 31 March 2023

EAST CHESHIRE HOSPICE

14. 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 2023 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		 2023
£
25,575
(17,189)
8,386
8,386
-
£
820
-
820		 2022
£
28,581
(17,092)
11,489
11,489
-
£
820
-
820

15. Stocks:

. Stocks:
Group Charity
2023 2022 2023 2022
£ £ £ £
Merchandise stock 694 171 - -

The amount of stock recognised as an expense in other trading activity during the year for the Group is £8,924 (2022: £9,215) and Charity £nil (2022: £nil).

16. Debtors:

Amounts falling due within one year:
Trade debtors
VAT recoverable
Amount due from subsidiary company
Gift aid recoverable
Prepayments and accrued income		 Group
2023
2022
£
£
48,121
567,746
11,930
20,180
-
-
16,300
27,707
864,477
842,359
940,828
1,457,992		 Charity
2023
2022
£
£
48,121
567,746
11,930
20,180
-
-
16,300
27,707
864,477
842,359
940,828
1,457,992

32

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2023

17. 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
2023
2022
£
£
15,000
15,000
149,370
74,423
-
-
81,365
72,947
328,327
125,767
108,091
98,584
682,153
386,721
98,584
126,747
352,531
350,289
(343,024)
(378,452)
108,091
98,584		 Charity
2023
2022
£
£
15,000
15,000
149,370
74,423
124
647
81,365
72,947
328,327
125,767
108,091
98,584
682,277
387,368
98,584
126,747
352,531
350,289
(343,024)
(378,452)
108,091
98,584		 Charity
2023
2022
£
£
15,000
15,000
149,370
74,423
124
647
81,365
72,947
328,327
125,767
108,091
98,584
682,277
387,368
98,584
126,747
352,531
350,289
(343,024)
(378,452)
108,091
98,584
387,368
126,747
350,289
(378,452)
98,584

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.

18. Contingent assets:

As at 31 March 2023 the Hospice is aware of 25 ongoing legacy cases (3 pecuniary and 22 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:

2023 2022
£ £
Contracted - -

In May 2023, post balance sheet date, the Hospice entered into a contract for the renovation of the Sunflower Wellbeing Centre, with a value of £1.2m.

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
2023
Total
2022
£
£
£
£
8,125
315
8,440
-
40,083
23,863
63,946
142,324
154,000
-
154,000
176,000
202,208
24,178
226,386
318,324

Operating lease payments made during the year were £81,305 (2022: £82,471).

33

NOTES TO THE ACCOUNTS For the year ended 31 March 2023

EAST CHESHIRE HOSPICE

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.

22. Funds:

Unrestricted Funds:
General
Revaluation reserve
Designated Funds:
Service development
Repairs & equipment
Building Development
Restricted:
Property Funds:
Hospice Premises
Capital Build Fund
Equipment fund
Hospice garden
Service Funds:
Hospice @Home services
Single point of access service
Dementia services
Other services
Other Funds:
Staff Fund
Total Restricted
TOTAL FUNDS		 Balance
b/f
Income
Costs
Transfers
Gains/
(losses)
Balance
c/f
£
£
£
£
£
£
5,378,641
6,837,790
(5,900,874)
332,994
(449,577)
6,198,974
60,880
-
-
(60,880)
-
1,688,251
-
-
(338,659)
-
1,349,592
485,000
-
(59,672)
-
-
425,328
1,830,000
-
(48,947)
-
-
1,781,053
9,442,772
6,837,790
(6,009,493)
(5,665)
(510,457)
9,754,947
4,039,863
-
(160,200)
48,947
-
3,928,610
101,613
130,783
(4,510)
-
-
227,886
30,233
24,634
(6,432)
(43,282)
-
5,153
1,735
-
(380)
-
-
1,355
449,692
936,478
(246,106)
-
-
1,140,064
294,202
76,986
(3,350)
-
-
367,838
-
203,880
-
-
-
203,880
59,379
39,689
(22,602)
-
-
76,466
3,150
63
(2,150)
-
-
1,063
4,979,867
1,412,513
(445,730)
5,665
-
5,952,315
14,422,639
8,250,303
(6,455,223)
-
(510,457) 15,707,262

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 – this represents funds set aside to support the ongoing development and expansion of services with particular emphasis on our ambitious plans in the fields of dementia, single point of access as well as further Hospice at Home expansion. These projects are still in the scoping phase in 2022/23 and so funds have not yet been allocated.

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.

34

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2023

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 available. Phase 1, the Proseal Wing, was completed in 2022 and fully funded by a generous donation. Throughout 2022/23 we have been developing the plans for Phase 2 (the refurbishment of the Sunflower Wellbeing Centre) and much of this fund will be used to support this project during 2023/24.

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.

Capital Build Fund – represents grants and donations received to support the development of the building, including the Hub and the Sunflower Wellbeing Centre.

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 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 was generously supported in 2022/23 by a large donation which will fund the service over a number of years. 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 People and Development 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.

23. Analysis of net assets between funds:

Tangible fixed assets
Investments
Net current assets
Group:
Investments
Net current assets
Charity:		 Unrestricted
Restricted
Total
Funds
Funds
2023
£
£
£
265,028
3,928,610
4,193,638
5,487,536
-
5,487,536
4,002,383
2,023,705
6,026,088
9,754,947
5,952,315
15,707,262
2
-
2
(820)
-
(820)
9,754,129
5,952,315
15,706,444

24. Related parties:

There are no related party transactions that require disclosure other than those relating to the trading company (note 14).

35