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2024-03-31-accounts

EAST CHESHIRE HOSPICE

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 2024

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 22
Consolidated Balance Sheet 23
Consolidated Cash Flow Statement 24
Notes to the Consolidated Financial Statements 25-36

EAST CHESHIRE HOSPICE

LEGAL AND ADMINISTRATIVE INFORMATION For the year ended 31 March 2024

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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 Bright Partnership
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
----- End of picture text -----

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

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
Mr R Barrow DL MBE (retired Sep-23) Dr D A Maxwell
Dr J Beck (appointed Sep-23) Mr N L McArthur Vice Chair
Mrs G Crawford Mrs N C Sampson
Mr S J Dickenson Mrs K R Waters
Mrs L Haughton Mr I Williams (appointed Sep-23)
Mr J R Lovett (retired Sep-23)

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 Mr J Corrigan (appointed May-23)
Prof Alistair Burns CBE Mr M Oliver OBE DL (appointed
Dr W Mansoor (appointed May- Nov-23)
23)
President: Mr David BriggsCVO MBE KStJ
Vice Presidents: Mr P Bianchi Mrs J C Legh (resigned Jul-23)
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 Mr R Barrow MBE DL (appointed Sep-23)
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 2024

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

In submitting their Annual Report together with the consolidated financial statements of East Cheshire Hospice and its subsidiary for the year ended 31 March 2024, 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 2024

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 2023 to 31 March 2024, a year in which the economic impact of the pandemic and geopolitical factors resulted in rapid inflationary hikes. In response, the Bank of England increased its base rate month on month which in turn put pressure on wage demands. This economic backdrop presented a perfect storm for an organisation such as East Cheshire Hospice, reliant as we are on voluntary donations to meet an ever-increasing cost base. The communities, individuals, companies, legators and retail shoppers and donors in East Cheshire continued to support our work but at each quarter in the year one or more of our income streams struggled, reflecting the wider economic climate.

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

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

people of all faiths and those without specific religious affiliations. Our compassionate team, led by a dedicated chaplain, aims to provide holistic care that caters to the diverse needs of our patients’ families and loved ones.

ACHIEVEMENTS AND PERFORMANCE

Over the course of the last year, we successfully delivered enhanced care to more patients and families than ever before and were able to contribute our palliative and end of life expertise and support to the wider system. Operationally our plans were 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 managed the organisation’s business as usual service delivery and operational support functions to ensure ECH developed in the right direction, meeting its charitable objects as well as its fiscal responsibilities. The Trustee Board through its scrutiny committees was assured that resources were being managed well in both the clinical and support service areas. Our clinical leaders accepted more referrals into their services than in any year in the history of the Hospice and they were able to maintain quality and increase responsiveness by deploying the team where they were most needed based on patient or carer demand. Our business teams too showed great resilience in the face of funding challenges and were still able to maximise resources using collaboration, new ways of working, smart IT solutions and data intelligence to support high quality patient care.

2023/24 was the third year of our 5-year IT strategy roadmap designed to ensure that ECH stays at the cutting edge of healthcare technology, enhancing patient and staff experience and creating efficiencies in the way we operate. During the year all milestones on our IT roadmap were achieved and our systems and network infrastructure were externally tested for security robustness and gained the Cyber Essentials Plus accreditation.

For a large part of the year our day hospice and outpatient facilities were closed for the refurbishment however spaces in the main hospice site were repurposed and adapted to accommodate and continue running our services, albeit on a slightly reduced capacity than normal.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

As part of our governance improvement programme, the Nominations and Remuneration Committee, worked with trustees to ensure all mandatory training was completed, a streamlined and transparent recruitment and on-boarding process for new trustees was developed, tested and implemented and Board engagement with the workforce was improved. The Board also overhauled how risk was managed in the organisation using improved reporting and monitoring systems.

We are indebted to the staff and volunteers who, with their skills and dedication, have made 2023/24 another year of impressive continuous improvement for the Hospice.

Change Programmes

Our achievement this year fell within four change programmes, developed to 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 year we achieved the following:

2. Hospice Sustainability to ensure that ECH remains financially and environmentally 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. This year we achieved the following:

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

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 the northern part of Cheshire East Place. This year we continued to develop plans for this collaboration, which will ensure everyone in their last year of life 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. This year we achieved the following:

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. This year we achieved the following:

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

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 £1,191,341 (2022/23: surplus £1,795,080). The overall result, after allowing for stock market gains and losses on the market value of our investment fund, is a surplus of £1,660,300 (2022/23: surplus £1,284,623).

Income

We benefited from another amazing year of support from our local community and commissioners. At £8.07m, income was only marginally lower than 2022/23, a fantastic result given that 2022/23 was our best funded year ever. Income was bolstered by another exceptional donation from Mr Michael Oliver, with £700,000 donated in 2023/24, following on from £800,000 donated in 2022/23. These exceptional donations are restricted to specific services, ensuring that those services are now funded and will remain viable for several years. Further consideration of income is given below:

Income Generation Activity

The Hospice's fundraising activities have stabilized following a period of volatility over the past few years. It is now clear that the methods by which we generate funds have been permanently impacted by the Covid-19 pandemic, and our team has altered accordingly. Despite these changes, we experienced a busy and productive year, culminating in an annual fundraising income of £2.358 million, surpassing the original budget of £2.152 million.

Commercial

Our retail income continues to flourish, supported in part by a societal shift towards preloved and upcycled shopping. We now have two ‘boutique’ style shops in Poynton and Chestergate which seek to capitalise on this trend and work hard to maximise their impact with social media and influencer engagement. All of our shops performed above their original budget, generating a total income of £726k against a budget of £661k.

We continue to look for suitable premises to develop new retail space, particularly in Congleton and Knutsford. It is proving challenging to find locations that meet all of our requirements but we are confident that expanding our retail offering will be worthwhile.

Fundraising

Our fundraising calendar this year featured a blend of Hospice-led and Community Events, including the Starlight Walk, Pie & Pint, and Light Up A Life, as well as an impressive array of coffee mornings, open gardens, plant sales, cake sales, quiz nights, fetes, golf days, festivals, balls, and more. Key activities for the year included:

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

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

We continue to work closely with our main commissioner, Cheshire & Merseyside Integrated Care Board (C&M ICB). We understand the well documented financial pressures that the health service, and in particular C&M ICB, are operating under. This has impacted on our grant funding, which supports the running of our Inpatient Unit. While C&M ICB increased their grant by £20k to £662k, this was offset by a fall in grant income from Derbyshire ICB, who cut their funding by £21k, a fall of 52%.

We continued to provide additional capacity to the system to support winter bed pressures at Macclesfield District General Hospital. We have also completed a second year under the Palliative Care in Partnership contract, under agreement with Mid Cheshire Hospitals NHS Foundation Trust (MCHT) which provides at home end of life care, enabling us to provide care 24/7 in more patients own homes. The income for both of these services is included in Charitable activities – NHS service contracts.

We are continually looking at ways to engage with our commissioners and this has led to new funding being allocated on a short term, contractual basis rather than as grant funding. This type of funding has tax consequences, potentially reducing the amount of VAT that we can recover on our costs, and thus reducing monies available to support our patients. We intend to review our structure in 2024/25 to ensure that we are maximising our recovery and making best use of our available resources.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

Expenditure

Total costs increased by £523k (8%) in the year to £6,978,250, of which £500k relates to salaries. Staffing remains the single largest cost in the Hospice (74%) as 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. The increase in salary costs is driven both by the 5% NHS Agenda for Change Pay deal announced in May 2023, which the Hospice also implemented, and the additional staffing needed to support clinical service development. Additional staff were recruited throughout the year to support the expansion of our Hospice at Home day service, and in the last quarter of the year in anticipation of the Knutsford Home First and the Community Dementia team services going live in early 2024/25. Staffing costs are planned to increase further in 2024/25 as these new teams embed and deliver much needed services throughout the year.

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.

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 term deposits to allow for possible funding gaps and in the stock market. The investment portfolio is invested in 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) Steady Growth benchmark. Returns were mixed during the year, but rallied in 2024, ending the year with an unrealised gain of £569k, more than recovering last year’s loss of £510k. The total return on the portfolio for the year to 31 March 2024 was 13.9%, comfortably ahead of the benchmark (9.7%). The performance has been reviewed by our specialist advisory group and Trustees remain confident in the investment holding.

Reserves

At 31 March 2024, the Hospice held total reserves of £17,367,562, an increase of £1,660,300 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 35 of these accounts.

Restricted Reserves

Since 2017, the Hospice has adopted a successful strategy of fundraising in advance for major new service developments and only going live with these services when sufficient pledges are received to ensure service viability for 5 years. As this can often take several years to achieve, the Hospice is in receipt of significant restricted funds which can only be spent on specific projects and in future periods. The high restricted balances can give a misleading view of the Hospice’s need for additional funding for non-restricted services.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

Of the total reserves, £7,111,714 is restricted, an increase of £1,159,399 in the year, and driven mainly by the £700,000 exceptional donation from Mr Michael Oliver, which is restricted to providing Hospice at Home services in the Knutsford area under the banner Knutsford Home First.

The main restriction is in respect of the Hospice building (£4.6m), an increase of £0.7m in the year, following the renovation of the Sunflower Living Well Centre. 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 relate primarily to new service developments:

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 2024 are £6,538,805 compared to £5,885,006 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.

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:

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

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

Demand for ECH services is expected to increase driven by population growth, delayed diagnosis following the pandemic and the organisation’s ambition to ensure palliative care is accessible to all who need it. The primary risk faced is the potential for services to be overwhelmed rendering them ineffective. To mitigate this risk, staff numbers will increase, and trustees have tasked the Senior Leadership Team to create a fully rotational workforce which can be deployed to any service facing short-term surges in demand.

Cheshire & Merseyside Integrated Care Board is facing significant budgetary constraints which may have adverse impact on 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. To mitigate this risk, East Cheshire Hospice is formally working with ten other adult hospices and one children’s hospice in the region to better articulate the contribution and value charitably funded hospices deliver.

PLANS FOR FUTURE PERIODS

Continuous Improvement

Our ambition is and always will be to continuously improve our services to meet the needs and expectations of the people we serve. To achieve this, we make sure that efficiency and effectiveness is embedded in our culture, our plans and in the personal objectives of each individual who makes up our high-performing ECH team. We demonstrate our commitment to this ambition by using data from patient and family feedback, incident reports and the frontline experiences of healthcare professionals to continuously improve what we do so that better outcomes can be achieved for the next cohort of patients and family members.

In 2024/25 we will collect data and experiences to inform how fully integrated services across hospice, community and acute settings impact outcomes for patients and families to inform our service development towards the provision of a seamless patient journey from the point of diagnosis.

Delivery of responsive, effective, safe and caring services - Formal reviews of existing services will be carried out to ensure they are meeting needs within the current funding envelope and to give us an indication of the resources required to address growing demand or enhancement of these services in future years.

People development - We will continue to invest in training for our clinical and non-clinical people whether they are paid employees or part of our dedicated volunteer workforce.

Governance and oversight - In September 2025, the incumbent Chair will have reached the maximum time-served limit of 3x3-year terms of office and so we will begin the process of recruiting the Chair Elect to take up the post in September 2024 and shadow the current Chair for a period of one year.

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

Innovation and collaboration - We will continue to be creative in our problem solving, brave in our delivery and be generous in sharing our learning with partners in our Locality (East Cheshire), our Place (Cheshire East), our Region (Cheshire & Merseyside) and nationally through Hospice UK.

Care and business support services - Focus on making efficiencies in our key support services of ICT, Finance, Human Resources including Learning and Development, Hospitality and Facilities

Community Engagement - Enable ECH to fully understand the needs of the communities it serves and help to inform the development of responsive services and increase donor, staff and volunteering opportunities.

Digital Transformation - We aim to be a more productive, secure, digitally agile organisation using new technologies, with reliable IT infrastructure, ‘smart’ facilities and interoperability with partners.

Data Analytics - Integrate all ECH data sources to give Board/SMT and Team Leaders greater visibility of information for effective monitoring, reporting and timely decision-making.

Change Programmes

1. Development of Existing Hospice Services

Strategic objective: To ensure we have the capacity and capability to deliver or facilitate accessible, relevant and inclusive services which support people and their families to live well whatever their condition.

We will expand and enhance our specialised care to more people dying from and with dementia, heart and respiratory diseases and cancer which are the leading causes of death in East Cheshire. We also aim to help anyone facing end of life challenges whatever their condition. We will review services so that we are better able to offer support from the point of diagnosis for all disease and condition types.

We will develop the productivity, capacity and capability of our existing services, namely, dementia support, Living Well Services, disease specific programmes e.g. MND and family support services such as bereavement and chaplaincy.

Emerging demographic and population health trends indicate that ill-health isolation is a growing issue in East Cheshire. We aim to better understand the problem and work to minimise the impact for people living with a life-limiting condition.

2. Hospice Sustainability

Strategic Objective: To ensure that ECH remains financially sustainable and meets our communities’ needs.

This change programme is wide ranging with each element aimed at ensuring ECH has the skills and requisite human, financial and material resources to comfortably maintain prevailing services and ensure the long-term stability and low environmental impact necessary to continue delivering innovative services in partnership with others.

We will seek significant improvements in each of the following areas of our operation:

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

3. System Integration for Palliative & End of Life Care

Strategic Objective: To work with partners to fully integrate our services so that patients and families experience a crisis-free last year of life with choice and control right to the end

Everyone living with a diagnosed life-limiting condition (c.1850 people in East Cheshire) will be accessing the most healthcare they have ever used in their previously healthy life. It is therefore an imperative that the health and social care system, already under so much pressure, works together to serve the needs of this cohort of patients, ensuring they receive the highest quality, most responsive and patient-centred care possible. To support palliative patients, their families and the system, ECH will use its resources to improve access to care in the following areas:

4. Facilities Development

Strategic Objective: To ensure our facilities are fit for purpose, efficient to run and safe to use

We will plan the remaining phases of the Hospice Site Re-development, make major changes in how our estate is maintained and upgrade specific facilities remaining cognisant of need to make everywhere welcoming to people living with dementia.

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

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

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.

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

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:

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EAST CHESHIRE HOSPICE REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT) For the year ended 31 March 2024

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

Bright Partnership (formerly 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 5 September 2024 and signed on its behalf by:

Mr S W Spinks

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EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2024

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 2024 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.

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EAST CHESHIRE HOSPICE INDEPENDENT AUDITORS REPORT TO THE MEMBERS AND TRUSTEES OF EAST CHESHIRE HOSPICE For the year ended 31 March 2024

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 2024

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 2024

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 Bright Partnership, Chartered Accountants 1 Park Street Macclesfield Cheshire SK11 6SR

Dated: 5 September 2024

21

EAST CHESHIRE HOSPICE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating and Income & Expenditure account) As at 31 March 2024

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		 2024
Unrestricted
Funds
Restricted
Funds
Total
£
£
£
4,434,132
1,153,829
5,587,961
865,314
-
865,314
1,257,964
6,295
1,264,259
352,057
-
352,057
6,909,467
1,160,124
8,069,591
1,284,496
624
1,285,120
2,821,988
93,000
2,914,988
754,863
59,075
813,938
1,110,599
257,160
1,367,759
444,364
26,261
470,625
86,634
39,186
125,820
6,502,944
475,306
6,978,250
568,959
-
568,959
975,482
684,818
1,660,300
(474,581)
474,581
-
500,901
1,159,399
1,660,300
9,754,947
5,952,315
15,707,262
10,255,848
7,117,714
17,367,562		 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

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 36 form part of these accounts.

22

EAST CHESHIRE HOSPICE

BALANCE SHEET

For the year ended 31 March 2024

Notes
Fixed Assets
Tangible assets
12
Investments
13
Current Assets
Stock
15
Debtors
16
Cash at bank and in hand
Creditors: amounts falling
due within one year
17
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
2024
2023
£
£
4,978,299
4,193,638
6,056,495
5,487,536
11,034,794
9,681,174
337
694
519,098
940,828
6,432,592
5,766,719
6,952,027
6,708,241
619,259
682,153
6,332,768
6,026,088
17,367,562
15,707,262
-
-
17,367,562
15,707,262
7,111,714
5,952,315
6,792,299
5,860,315
3,344,167
3,894,632
119,382
-
17,367,562
15,707,262		 Charity
2024
2023
£
£
4,978,299
4,193,638
6,056,497
5,487,538
11,034,796
9,681,176
-
-
519,098
940,828
6,432,590
5,766,717
6,951,688
6,707,545
619,740
682,277
6,331,948
6,025,268
17,366,744
15,706,444
-
-
17,366,744
15,706,444
7,111,714
5,952,315
6,791,481
5,859,497
3,344,167
3,894,632
119,382
-
17,366,744
15,706,444		 Charity
2024
2023
£
£
4,978,299
4,193,638
6,056,497
5,487,538
11,034,796
9,681,176
-
-
519,098
940,828
6,432,590
5,766,717
6,951,688
6,707,545
619,740
682,277
6,331,948
6,025,268
17,366,744
15,706,444
-
-
17,366,744
15,706,444
7,111,714
5,952,315
6,791,481
5,859,497
3,344,167
3,894,632
119,382
-
17,366,744
15,706,444
9,681,176
-
940,828
5,766,717
6,707,545
682,277
6,025,268
15,706,444
-
15,706,444
5,952,315
5,859,497
3,894,632
-
15,706,444

These financial statements of East Cheshire Hospice (charity number 515104; company number 01807691) were approved by the Board of Trustees on 5 September 2024 and signed on its behalf by:

Mr S W Spinks

Mr N L McArthur

The notes on pages 25 to 36 form part of these accounts

23

EAST CHESHIRE HOSPICE

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2024

Cash flows from operating activities:
Net cash provided by / (used in) operating activities
Cash flow from investing activities:
Dividends and interest from investments
Purchase of property, plant and equipment
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		 2024
£
1,489,635
352,057
(1,175,819)
(823,762)
665,873
5,766,719
6,432,592		 2023
£
2,605,761
223,028
(141,873)
81,155
2,686,916
3,079,803
5,766,719

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
Net cash provided by / (used in) operating activities
Analysis of cash and cash equivalents:
Cash in hand
Notice deposits
Total cash and cash equivalents		 2024
£
1,660,300
241,784
(568,959)
(352,057)
149,374
357
421,730
(62,894)
1,489,635
2024
£
1,681,251
4,751,342
6,432,592		 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

24

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2024

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 £1,660,300 (2023: net gain £1,284,623).

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 2024

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 2024

2. Donations and legacies:

Donations
Legacies
Community activity
Grants		 Unrestricted
Funds
Restricted
Funds
Total
2024
£
£
£
972,214
951,427
1,923,641
2,100,930
-
2,100,930
489,711
7,538
497,249
871,277
194,864
1,066,141
4,434,132
1,153,829
5,587,961		 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
Grants receivable were:
Cheshire & Merseyside ICB – care
Cheshire & Merseyside ICB – drugs
Cheshire & Merseyside ICB – other
Derbyshire ICB – care
Other grants and trusts		 Unrestricted
Funds
Restricted
Funds
Total
2024
£
£
£
499,448
-
499,448
108,000
- 108,000
54,929
- 54,929
20,000
- 20,000
188,900
194,864
383,764
871,277
194,864
1,066,141		 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

The Hospice's main grant agreements are with Cheshire & Merseyside Integrated Care Board (ICB). 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
2024
£
£
£
795,393
-
795,393
69,921
-
69,921
865,314
-
865,314		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
723,567
-
723,567
31,853
-
31,853
755,420
-
755,240

4. Other trading activities:

Events and sponsorship
Lottery income
Shops		 Unrestricted
Funds
Restricted
Funds
Total
2024
£
£
£
388,427
6,295
394,722
283,289
-
283,289
586,248
-
586,248
1,257,964
6,295
1,264,259		 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

27

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2024

5. Investment income:

Investment income: NOTES TO THE ACCOUNTS
For theyear ended 31 March 2024
Dividends received
Interest received		 Unrestricted
Funds
Restricted
Funds
Total
2024
£
£
£
175,769
-
175,769
176,288
-
176,288
352,057
-
352,057		 Unrestricted
Funds
Restricted
Funds
Total
2023
£
£
£
183,231
-
183,231
39,797
-
39,797
223,028
-
223,028

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)		 2024
£
241,784
9,500
1,000
5,905		 2023
£
221,636
9,400
1,000
4,685

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
Support costs		 Unrestricted
Funds
Restricted
Funds
Total
2024
£
£
£
394,715
-
394,715
178,157
-
178,157
572,872
-
572,872
266,878
-
266,878
91,411
-
91,411
13,491
-
13,491
79,312
-
79,312
154,855
-
154,855
605,947
-
605,947
105,677
624
106,301
1,284,496
624
1,285,120		 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

28

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2024

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 and consumables
Patient care – grant
Support costs		 Unrestricted
Funds
Restricted
Funds
Total
2024
£
£
£
2,075,647
1,499
2,077,146
126,651
-
126,651
52,719
407
53,126
170,301
1,933
172,234
124,929
87,557
212,486
271,741
1,604
273,345
2,821,988
93,000
2,914,988
518,433
14,591
533,024
7,495
3,904
11,399
14,918
97
15,015
67,474
726
68,200
55,963
39,222
95,185
90,580
535
91,115
754,863
59,075
813,938
845,600
244,033
1,089,633
21,800
1,989
23,789
1,256
0
1,256
16,678
141
16,819
13,911
9,749
23,660
211,354
1,248
212,602
1,110,599
257,160
1,367,759
293,918
753
294,671
1,998
100
2,098
3,174
0
3,174
42,168
357
42,525
35,171
24,650
59,821
67,935
401
68,336
444,364
26,261
470,625
57,489
36,590
94,079
4,397
51
4,448
17,200
2,500
19,700
7,548
45
7,593
86,634
39,186
125,820		 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
2,479
3,875
6,354
90,330
-
90,330
6,976
-
6,976
120,635
7,335
127,970

Support costs are now apportioned on the basis of headcount used in each activity.

29

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2024

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
2024
Total
2023
£
£
£
£
£
£
£
£
6,093
15,667
5,222
12,186
3,917
435
43,520
36,278
5,839
15,013
5,004
11,677
3,753
417
41,703
41,698
17,003
43,723
14,574
34,007
10,931
1,215
121,453
105,891
31,768
81,689
27,231
63,536
20,422
2,269
226,915
191,558
28,700
73,800
24,600
57,400
18,450
2,050
205,000
225,928
10,675
27,451
9,150
21,351
6,863
763
76,253
83,578
6,223
16,002
5,334
12,445
4,000
444
44,448
14,218
106,301
273,345
91,115
212,602
68,336
7,593
759,292
699,149

10. Staff costs and numbers

Staff payroll costs (excluding agency) were:
Salaries
Social security costs
Employers pension – defined contribution
Employers pension – defined benefit		 2024
£
4,351,039
405,848
188,638
199,497
5,145,022		 2023
£
3,921,417
377,790
171,950
173,775
4,644,932

Staff costs includes £nil for redundancy and termination payments (2023: £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:		 2024
No.
81
20
19
120
162		 2023
No.
75
19
18
112
144

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

2024 2023
No. No.
£60,000 - £70,000 1 -
£70,001 - £80,000 - -
£80,001 - £90,000 - 2
£90,001 - £100,000 2 -

Pension contributions of £17,721 (2023: £11,783) were made to a defined contribution scheme in respect of these employees.

The total amount of salary and benefits paid to key management personnel, as identified on page 2 (Legal and administrative details – Management Team) was £457,792 (2023: £422,091). None of the Trustees received any remuneration or benefits from an employment with the charity or related entities.

30

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2024

During the year no expenses were paid to or on behalf of Trustees (2023: £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 £19,645 (2023: £48,982).

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 2024, is based on valuation data as 31 March 2023, updated to 31 March 2024 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 2020. The results of this valuation set the employer contribution rate payable from April 2024 to 23.7% of pensionable pay. The core cost cap cost of the scheme was calculated to be outside of the 3% cost cap corridor as at 31 March 2020. However, when the wider economic situation was taken into account through the economic cost cap cost of the scheme, the cost cap corridor was not similarly breached. As a result, there was no impact on the member benefit structure or contribution rates.

During the year, the Hospice paid employers contributions of £199,497 (2023: £173,775) 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

31

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2024

Directions. The pension creditor as at the year-end was £29,187 (2023: £24,961). While the Employer contribution rate has been set at 20.6%, Employers have only been required to make contributions at 14.3% for both 2023/24 and 2022/23. Had the full rate been in force, the Employer contributions in 2023/24 would have been £286,898 (2023: £249,907), an increase of £87,401 (2023: £76,132).

12. Tangible fixed assets (group and charity):

Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Disposals
At 31 March 2024
Net book values
At 31 March 2024
At 31 March 2023		 Freehold Land
& Buildings
Plant &
Equipment
Vehicles
Computers
Total
£
£
£
£
£
6,232,818
636,715
101,525
107,916
7,078,974
986,383
126,087
39,459
23,890
1,175,819
(255,457)
(98,182)
-
(98,223)
(451,862)
6,963,744
664,620
140,984
33,583
7,802,931
2,268,208
489,423
29,256
98,449
2,885,336
160,200
54,834
17,623
9,127
241,784
(106,085)
(98,180)
-
(98,223)
(302,488)
2,322,323
446,077
46,879
9,353
2,824,632
4,641,421
218,543
94,105
24,230
4,978,299
3,964,610
147,292
72,269
9,467
4,193,638

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

13. Investments:

Managed Portfolio
Market value b/f
Additions
Disposals
Net investment gains/(losses)
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)		 2024
£
5,487,526
31,122
(31,122)
568,959
6,056,485
5,937,103
6,056,485
10
6,056,495
2
6,056,497		 2023
£
5,997,983
-
-
(510,457)
5,487,526
5,937,103
5,487,526
10
5,487,536
2
5,487,538

32

NOTES TO THE ACCOUNTS For the year ended 31 March 2024

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 2024 are:

2024
2023
£
£
Turnover
22,102
25,575
Cost of sales and administration
(16,871)
(17,189)
Operating profit
5,231
8,386
Amount gift aided to the charity
5,231
8,386
Retained in subsidiary
-
-
Balance Sheet
£
£
Current assets
820
820
Current liability - amount owed by / (to) parent
-
-
Total net assets
820
820
. Stocks:
Group
Charity
2024
2023
2024
2023
£
£
£
£
Merchandise stock
337
694
-
-		 2024
£
22,102
(16,871)
5,231
5,231		 2023
£
25,575
(17,189)
8,386
8,386
- -

15. Stocks:

The amount of stock recognised as an expense in other trading activity during the year for the Group is £8,241 (2023: £8,924) and Charity £nil (2023: £nil).

16. Debtors:

Amounts falling due within one year:
Trade debtors
VAT recoverable
Gift aid recoverable
Prepayments and accrued income		 Group
2024
2023
£
£
71,236
48,121
107,115
11,930
40,835
16,300
299,912
864,477
519,098
940,828		 Charity
2024
2023
£
£
71,236
48,121
107,115
11,930
40,835
16,300
299,912
864,477
519,098
940,828

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
2024
2023
£
£
-
15,000
291,485
149,370
-
-
93,236
81,365
146,981
328,327
87,557
108,091
619,259
682,153
108,091
98,584
319,046
352,531
(339,580)
(343,024)
87,557
108,091		 Charity
2024
2023
£
£
-
15,000
291,485
149,370
481
124
93,236
81,365
146,981
328,327
87,557
108,091
619,740
682,277
108,091
98,584
319,046
352,531
(339,580)
(343,024)
87,557
108,091		 Charity
2024
2023
£
£
-
15,000
291,485
149,370
481
124
93,236
81,365
146,981
328,327
87,557
108,091
619,740
682,277
108,091
98,584
319,046
352,531
(339,580)
(343,024)
87,557
108,091
682,277
98,584
352,531
(343,024)
108,091

33

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS For the year ended 31 March 2024

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 2024 the Hospice is aware of 34 ongoing legacy cases (6 pecuniary and 28 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:

2024 2023
£ £
Contracted 79,629 -

In May 2023 the Hospice entered into a contract for the renovation of the Sunflower Wellbeing Centre, with a value of £1.2m. The capital commitment represents the unfinished element of the build as at 31 March 2024.

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
2024
Total
2023
£
£
£
£
-
-
-
8,440
92,000
10,778
102,778
63,946
130,167
8,902
139,069
154,000
222,167
19,680
241,847
226,386

Operating lease payments made during the year were £78,657 (2023: £81,305).

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.

34

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2024

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
Knutsford Home First
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
£
£
£
£
£
£
6,198,974
6,909,467
(6,441,546)
(443,555)
568,959
6,792,299
-
-
-
119,382
-
119,382
1,349,592
-
-
(211,354)
-
1,138,238
425,328
-
(46,360)
(30,465)
-
348,503
1,781,053
-
(15,038)
91,411
-
1,857,426
9,754,947
6,909,467
(6,502,944)
(474,581)
568,959
10,255,848
3,928,610
-
(161,179)
837,990
-
4,605,421
227,886
115,010
-
(342,896)
-
-
5,153
16,564
(1,746)
-
-
19,971
1,355
500
(1,169)
-
-
686

1,140,064
110,308
(234,033)
-
-
1,016,339
700,000
(13,105)
(20,513)
-
666,382
367,838
74,635
(5,326)
-
-
437,147
203,880
138,327
(6,562)
29,564
-
365,209
76,466
3,282
(50,184)
(29,564)
-
-
1,063
1,498
(2,002)
-
-
559
5,952,315
1,160,124
(475,306)
474,581
-
7,111,714
15,707,262
8,069,591
(6,978,250)
-
568,959 17,367,562

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.

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 available. Costs in year of £723,627 relate to Phase 2, the refurbishment of the Sunflower Wellbeing Centre. Planning on

35

EAST CHESHIRE HOSPICE

NOTES TO THE ACCOUNTS

For the year ended 31 March 2024

Phase 3, the redevelopment of our original kitchen and staff areas, will commence in 2024-25, and a further £800,000 has been designated in year towards future build phases.

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, with income and costs in year relating to 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 angel donor campaign. This work has led into the development of Knutsford Home First, a joint project with the NHS to provide at home services in the Knutsford Care Community, paid for by a generous donation from Mr Michael and Jennifer Oliver. Angel donor campaigns have continued in year for both our Single Point of Care and community dementia projects, both of which will become operational in 2024/25. Other service funds represent monies received for the provision of specific Hospice services as requested by donors.

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
2024
£
£
£
372,878
4,605,421
4,978,299
6,056,495
6,056,495
3,826,475
2,506,293
6,332,768
10,255,848
7,111,714
17,367,562
2
-
2
(820)
-
(820)
10,255,030
7,111,714
17,366,744

24. Related parties:

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

36