## **Registered Number: 1628455 Charity number: 516287**
## **THE MYTON HOSPICES**
**(A company limited by guarantee)**
**TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **THE MYTON HOSPICES**
## **(A company limited by guarantee)**
## **CONTENTS**
||**Page**|
|---|---|
|**Reference and administrative details of the charity**|1|
|**Trustees' report**|2 - 18|
|**Independent auditor's report**|19 - 21|
|**Consolidated statement of financial activities**|22|
|**Consolidated Balance Sheet**|24|
|**Company Balance Sheet**|25|
|**Consolidated statement of cash flows**|26|
|**Notes to the financial statements**|27 - 52|
**THE MYTON HOSPICES (A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023**
## **Trustees**
Mr K W Demian, Chairman Mr K Beer-Jones (Resigned 20[th] July 2022) Dr V Robson Mr P D Taylor (Resigned 31[st] March 2023) Mrs N Virani-Bland Mr J Asbury Mrs S Faulkner Dr M Iredale Mrs M Cable Mrs C F De Nahlik Mrs K Mascia (Appointed 22[nd] November 2022)
## **Company registered number**
1628455
## **Charity registered number**
516287
## **Registered office**
Myton Lane, Warwick, CV34 6PX
## **Chief executive officer**
Mrs R Freeman
## **Senior management team**
Mrs R Freeman, Chief Executive Dr S MacLaran, Medical Director and Consultant in Palliative Care Mrs M Linnane, Director of Nursing, Care and Service Development Mr S Jones, Director of Finance and Commercial Development Mr D Pratt, Director of Corporate Resources Miss C Ingram, Director of Income Generation and Supporter Development Mrs L Jackson, Director of People Services
## **Independent auditor**
Harrison, Beale and Owen Limited, Highdown House, Leamington Spa, CV31 1XT
## **Bankers**
Lloyds Bank Plc, High Street, Coventry, CV1 5RA
## **Solicitors**
Wright Hassall, Olympus Avenue, Leamington Spa, CV34 6BF
## **Investment Managers**
Brewin Dolphin, 9 Colmore Row, Birmingham, B3 2BJ
1
**THE MYTON HOSPICES**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023**
The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Myton Hospices (the company and the group) for the year 1 April 2022 to 31 March 2023.
The Trustees confirm that the annual report and financial statements of the company and the group comply with the current statutory requirements, the requirements of the company and the group's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). The Trustees have complied with the duty in the Charities Act 2011, to have due regard to public benefit guidance published by the Charity Commission.
## **Objectives and Activities**
## **a. POLICIES AND OBJECTIVES**
## **Our Vision**
Myton Hospice believes everyone across Coventry and Warwickshire should live well towards the end of their life and have the right to a good, natural death, the way they want it to be and with their loved ones supported.
## **Our Mission**
The Myton team provide high quality specialist care to people whose condition no longer responds to curative treatment, from diagnosis to death. We aim to meet their physical, psychological, spiritual and social needs and ensure their families are supported both through and after this difficult time. We are committed to training, supporting and encouraging other care providers to practise good palliative care.
## **b. STRATEGIES FOR ACHIEVING OBJECTIVES**
## **Our Strategy**
Our strategy for 2020-2023 was launched pre the pandemic, and focuses on five strategic themes:
- People
- Responsiveness
- Engagement
- Community
- Sustainability
## **c. ACTIVITIES FOR ACHIEVING OBJECTIVES**
## **Our services**
Care and support for our patients and their families is currently delivered in the following ways:
- 16 bedded inpatient unit at Warwick Myton Hospice.
- 20 bedded inpatient unit at Coventry Myton Hospice.
- 24/7 Hospice at Home team covering the Rugby, Warwick & Leamington Spa areas.
- Counselling Service operating across all 3 sites.
- Lymphoedema Service, mainly for those with secondary disease due to cancer, living within Coventry and Warwickshire.
- Complementary Therapy service operating across all three sites.
2
**THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
- Physiotherapy and Occupational Therapy services, including outpatient services, operating across all three sites
- Spiritual support across all three sites
- Wellbeing Services
- Living Well Service
- • Fatigue and Breathlessness Programme (FAB)
We have emerged from the pandemic, a more resilient, leaner and ambitious organisation, equipped to regrow our provision and optimise services for the benefit of the patients in our care.
Having committed to substantially increasing bed space from the outset of 2022/23, the greatest challenges have been around recruiting sufficient staff to care for the reintroduction of prepandemic patient numbers. Trustees and the executive team committed a well resourced budget to ensuring a return to normal activity levels. The combined efforts of staff and benefactors enabled these service increases whilst also delivering stable financial performance, ensuring that the charity maintained plentiful reserves to underpin further future ambitious growth plans. Our fundraising and retail teams performed exceptionally well, ably supported by the Myton Lottery, providing strong commercial income to support the ever diminishing sums afforded to the hospice by local NHS trusts.
The highlight of the year was undoubtedly our 40[th] anniversary celebrations, with various events and fundraising initiatives held to celebrate this momentous occasion. Staff, donors, patients, families and trustees came together to reflect on past successes, look forward to even greater ones in future and also to enjoy two wonderful cakes donated by two local businesses.
## **Our Strategy**
Commencing in April 2020, sadly much of the 2020-2023 strategy has been lived in the shadow of the global pandemic. Nonetheless the five key themes remained relevant throughout and will continue to do so as the charity enters its new three-year strategy from April 2023, where we will aim to build on the strong foundations laid through surviving and even thriving during the most challenging of times.
## **People**
_Our People are the most important resource and attracting and retaining the best talent is our goal. We will continue our focus on Equality, Diversity and Inclusion, health and wellbeing, and learning and development._
One of the greatest challenges we face is the dearth of staff available in the employment market, coupled with the seller’s market culture it creates. Competition for people is fierce but in keeping with the resourcefulness shown by Myton in recent years, the year has seen highly effective, innovative recruitment initiatives in support of our growth targets. New patient facing staff have joined and been retained at higher pay rates, placing greater emphasis on our voluntary income streams as incremental awards from NHS trusts fail to keep pace with inflation. The same challenges are faced in our fundraising and retail functions, where we have needed to increase pay rates to recruit and retain staff. Full staffing provision remains a key, but seemingly unachievable objective, making on budget performance in 2022/23 even more remarkable.
Embedding the new Equality, Diversity and Inclusion Officer ensuring that the department proactively supports EDI across all its activities and moves towards becoming the full business partner envisaged in strategic planning has also been a key priority. Work has also commenced in ensuring a proactive and responsive approach at Trustee level, part of a broader push to ensure widening access within the patient community.
3
**THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **Responsiveness**
_In recent years we have made great progress in becoming more patient focused and worked hard to make our services more flexible. We will continue to look for opportunities to take our services where they are needed and to make changes if they improve accessibility and equity._
The reinstatement of a 28-bed in-patient model has enabled the greatest accessibility to hospice based care since the start of the pandemic. The expansion of our Wellbeing services, coupled with an extension of hospice at home daily visits from two to three have further improved responsiveness. The single event highlight of the year was the relaunch of the Rugby Hub in June 2022, following a programme of significant refurbishment. The support provided from the Myton community in Rugby came in the form of direct donations, as well as community contributions to the refurbishment work, spanning corporate and individual giving contributors. As we enter the new three year strategy we will seek to build on these key initiatives to deliver our quest of reaching more people sooner in their palliative care journey.
## **Engagement**
_To help our teams deliver more care and support to the people who need us we will engage widely with individuals, volunteers, groups, organisations, local authorities, and health and social care professionals who can help us make it happen using their affluence and influence._
With the pandemic largely confined to the history books, for now at least, we also lose the vital support provided by Hospice UK and local authority grants. With NHS funding declining as a proportion of overall income, the emphasis on our wider stakeholder base becomes ever greater. The 2023-26 strategy has a strong focus on achieving greater reach in every regard, which will be vital to the short, medium and long term sustainability of Myton.
## **Community**
_We will always have our hospices where people can visit us for care and support but we will also look at taking our services out into the community to contact and connect with people where they are, going to them rather than expecting them to come to us._
As pandemic restrictions continued to lift during the year, care and connectivity operations in the community were increased. The reopening of the Rugby Hub and increased visits from the Myton at Home team were complemented by roll out of the Information Clinics pilot conducted in the previous year. This has enabled us to reach more patients outside the walls of the hospice, utilising the vehicle fleet purchased last year much more effectively than was possible in the depths of the pandemic. Future plans will seek to build on this even more impactfully.
The disjointed structure of palliative care in Coventry and Warwickshire, with no fewer than five independent providers including Myton and Marie Curie operating locally, coupled with two NHS commissioning bodies, provides a complex base from which to build a cohesive county wide provision. As the largest single provider in the area, with a presence in all parts of the patient catchment, we are determined to ensure that the prevailing framework does not impact on patient care. Enhanced partnership working is challenging, but possible, with our new three year strategy targeted at maximum impact, and is designed to break down the barriers present, putting patients and their loved ones at the heart of policy and strategy.
4
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **Sustainability**
_To ensure the long term financial viability of the organisation we will further develop some key income streams. We will focus on legacy marketing, maximise income from trusts and grants, and build relationships with potential major givers and influencers. We will also develop income from commercial activities including our education provision. We aim to become a more environmentally sustainable organisation, ensuring our buildings are future-proofed (including Warwick Myton which we plan to update in the coming years) and using technology to support remote working and reduce travelling and improve parking at our sites. We will continue to focus on cost improvement, collaboration, and efficiency to streamline working practices and maximise spend on patient care._
With increasing pressure on central government, local authority and NHS finances, it remains imperative for Myton to explore all avenues to secure service based, trading and fund-raised income streams. Whilst temporarily stunted by the excessive length of the pandemic period, exploring new opportunities, as well as unlocking value from existing contracts has remained a priority and will be continued into the new year and beyond.
As we gradually returned to fuller staffing, the sustained success of the fundraising and trading functions, which generate around 80% of all income streams into the hospice, remained pivotal to success. Commissioned services continued to perform well. We have also begun to consider ways of expanding the offer in our external education and lymphoedema departments. Members of the finance team are working closely with other colleagues to ensure value optimisation and costing new target areas to ensure that the charity can honour all of its strategic priorities during the new three-year strategy and beyond.
In more practical terms we have commenced a programme of environmentally and financially beneficial works, including the installation of additional solar power generation and more efficient heat and light consumption, as we move towards a more resilient financial model.
## **d. MAIN ACTIVITIES UNDERTAKEN TO FURTHER THE CHARITY'S PURPOSES FOR PUBLIC BENEFIT**
Our Charitable activities are focused on offering free care and support to patients and their families from the moment they receive a diagnosis that their illness is incurable. Referrals are accepted from a variety of sources and places allocated according to clinical need. We work closely with a range of health care professionals to ensure that the maximum benefits for the patients and the people that love them are achieved.
## **STRATEGIC REPORT**
## **Achievements and performance**
## **a. REVIEW OF ACTIVITIES**
## **In Patient Services**
Reopening more beds required a huge collective effort from our clinical, medical and people teams, significantly hindered by a tough staff recruitment environment, with many patient care organisations competing for a scarce pool of nursing staff. Implementing innovative ways of attracting staff proved successful, although the continuing lack of support from the NHS for nationally recognised cost pressures does have a longer-term impact on our ability to achieve ambitious future expansion plans. The proportion of commissioned income once again fell as a percentage of total revenues.
5
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
Increased efforts from the Myton team saw a significant increase in the number of patients admitted to our IPUs compared to the previous year, rising from 519 in 2021/22 to 579 in 2022/23, an increase of 11.5% year on year. Overall bed occupancy rose considerably, from 6,178 in 2021/22 to 7,408 bed days in 2022/23, a fantastic 20% increase. We have also supplemented our provision for inpatients and their families through additions to the welfare team, ensuring a more comprehensive package of care when patients and their loved ones most need it.
## **Myton at Home**
The service continues to deliver care in a person’s own home working alongside the district nurses (DN’s) and General Practitioners (GP’s). The addition of Clinical Nurse Practitioners have further enhanced the service, as has the expansion late in the year to three visits daily, through one-off support from commissioners, which will need funding from next year. During 22/23 The Myton at Home team supported 153 patients, a small increase on the previous year when the team supported 144 patients. Total home visits for patients across Coventry & Warwickshire in 2022/23 amounted to 2,735 compared to a prior year figure of 1,888, illustrating a substantial increase in the number of visits achieved for each patient cared for.
## **Lymphoedema**
During the year our Lymphoedema service grew significantly in its support of patients referred to Myton from South Warwickshire Foundation Trust and University Hospital Coventry and Warwickshire. 667 patients were supported by the Lymphoedema team (366 in 2021/22).
The Hospice has Service Level Agreements with the two NHS trusts, and attracts an income based on the number of patients treated.
## **b. ACHIEVEMENTS**
The combined achievements of Increased patient numbers, a fuller staff base, income levels restored to former levels without receiving the government grants of recent years and on budget financials are testimony to the sustained performance achieved by Myton in 2022/23. Myton has emerged from the pandemic a stronger organisation, entirely due to the incredible hard work and commitment of the entire Myton community, led by the frontline staff and leadership teams, complete with the phenomenal goodwill and support of our donors and voluntary supporters. The exceptional work delivered by everyone during the pandemic continued into 2022/23, enabling frontline teams to return to pre-pandemic service levels. Total patients seen is 46% up on the previous year at 2,210 (2021/22 1,514) a journey we aim to continue within the next three year strategy period commencing April 2023.
## **c. VOLUNTARY INCOME**
With only around 1/5[th] of total funds received coming from NHS commissioners, voluntary income holds the key to the successful operations of Myton. This is achieved across three principal areas, Fundraising (inc. Legacy), Lottery and Retail. Our fundraising team generated a superb total of c£4.2m gross (net £3.445m), an extraordinary effort in present economic conditions.
6
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
Together, Retail and Lottery generated over £5m gross, contributing c£2.334m towards delivering our objectives. Continuing this performance will be critical to the overall success of the charity, but with bold expansion plans within the new three year strategy, expectations are high that we will maintain and hopefully exceed these numbers in future.
In summary the net revenue generated from voluntary income of £5.779m equates to 2.2 times the amount received from NHS commissioned income, with the gross sums of £9.273m a whopping 3.5 times that funded by the NHS.
## Our fundraising standards:
The Myton Hospices are members of the Fundraising Regulator, and we abide by their Fundraising Code of Practice which covers various aspects of fundraising. We work tirelessly to protect our supporters' data, as well as evolving our systems to ensure that our supporters can choose how they would like to be contacted and with what types of communication, in compliance with the General Data Protection Regulations. For all mailings / campaigns we have a dedicated team of staff who provide the mailing lists and an electronic process that must be completed by the member of staff arranging the mailing. Data requests must include the following; name of mailing, communication type, audience targeted and rationale behind each person receiving this communication. All of this data is stored and we have a clear audit trail that can be referred back to as and when it is required. We have an Income Generation Policy and also an Ethical Fundraising Policy and we ensure that everyone is working within these guidelines at all times. We also comply with the Gambling Commission and adhere to all of the associated codes of practice relating to our lottery promotion and indeed the operating of our weekly lottery.
Lottery canvassing is performed by an internal team of our own staff, and also external contractors. The staff receive an in-depth induction when they join Myton to ensure that their standards and practises when dealing with the public are to the highest standard. The performance and practices of external lottery canvassing teams are also monitored, in order to ensure that those teams represent the Hospice to the standards expected. Staff employed by the external companies will also visit the Hospice and undertake training from our lottery team. All complaints relating to the Lottery service are referred to the Chief Executive Officer who will then delegate the responsibility of investigation to either the Director of Income Generation or the Lottery Manager. The Director of Income Generation and the Lottery Manager ensure that they are responded to in an appropriate manner.
## Monitoring our fundraising:
We monitor our fundraising and lottery canvassers' practices carefully. All supporter calls, emails and letters are logged with summaries and key issues communicated back to the management team to improve future communications. We have a complaints policy that is adhered to for all complaints received and any issue is escalated to the CEO. Each issue is then investigated and the supporter is responded to accordingly. We're very aware of the potential of fundraising to become persistent or intrusive. We have established internal standards to guide how often we contact supporters and provide clear and simple ways for them to opt out of future communications. We ask supporters for feedback on this issue and continue to monitor the issue closely. During the financial year 39 complaints were received and responded to. These complaints include feedback around lottery canvassers and our lottery in general, information being sent to a supporter, or negative comments received following a fundraising activity or through an incident in one of our 23 shops or via our collections service.
7
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
Our external fundraising companies have a comprehensive Myton induction before a canvasser represents Myton and we ensure they all have of the correct Myton information with them and represent Myton in an honest and open way at all times and adhere to our mission and values and behaviours. We arrange spot checks to ensure this is being undertaken and we act swiftly if Myton is not represented correctly. We have established a policy to help us identify potentially vulnerable people and we adhere to all regulations prescribed by the Gambling Commission and Fundraising Regulator. With our lottery promotion, we ensure that all of our supporters are fully understanding of our lottery ask and if we are ever concerned that an individual may be vulnerable, we would apply follow up communications to ensure the individual was happy with an agreement before any payment is taken. We have a responsibility to ensure each entrant must be at least 16 years of age.
## **d. INVESTMENT POLICY AND PERFORMANCE**
The value of investments is £4,586,399 (2021/22 - £4,773,085). The investment fund includes £67,500 relating to the value of land at Braunston of which Myton holds a share and £45,354 being the shareholdings in the Promotions Company. The remaining balance is held in a long term investment portfolio managed by Brewin Dolphin, the returns on the investments during the year are paid as income to the charity.
The charities reserve policy states that the reserves balance is held in investments. When the cash balances of the organisation are above the levels needed in working capital, the Finance and Audit Committee agree to move more funds into investments to ensure the best rate of return is generated. Owing to unrealised losses to the holding value of investments during the highly volatile pandemic period, for the time being, cash reserves have been maintained to protect the capital value of the excess of reserves over policy requirements.
## **Financial review**
## **a. 2022-23 FINANCIAL PERFORMANCE**
The Charity's Management Board agreed an operating deficit budget of £217k before investment gains/losses for the year 2022/23, a net surplus budget prior to depreciation of £178k.
Largely due to superb performances in the Fundraising and Retail functions of the charity, Myton achieved an excellent year end result, with a net loss before investment gains/losses of £4,740 (2021/22 – surplus £439,962). The cash surplus rises to £326,696 (2021/22 - £919,864) once depreciation is added back. The overall decrease in funds, arrived at by subtracting investment losses from operating loss is £299,333 (2021/22 – increase £603,382). In the first post-pandemic unsubsidised year, the trustees are proud of the financial performance of the charity, whilst also recognising the significant challenges that lie ahead.
## **Income**
## **Extraordinary income**
Compared to recent years, the grant support received from various stakeholders was negligible
8
**THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **NHS Grant Income**
NHS Grants increased by 6.2% overall in 2022/23 to £2,649,905 from £2,495,922 in 2021/22, with growth in Lymphoedema demand and additional one-off funding for Myton@Home adding to the 2.9% cost of living increase applied to each of the previous year’s service level agreements.
There are four elements to the NHS funding, the main block contract with three local CCG's; Coventry and Rugby CCG (CRCCG), South Warwickshire CCG (SWCCG), and Warwickshire North CCG (WNCCG), the Myton at Home contract for the service in the Rugby area (CRCCG), the Nurse Led Bed contract which commenced in November 2015 (CRCCG) and Lymphoedema treatment services provided to the CCG.
## **Donations and Legacies**
During 2022/23 income from donations and legacies totalled £4,440,744, a 4.7% increase on the previous year (2021/22 - £4,243,384). Legacies left to the hospice in 2022/23 were £1,269,289, a decrease on the prior year (2021/22 - £1,769,597). Donations saw an increase year on year with a total of £3,171,455 being donated by our supporters (2021/22 - £2,473,787).
## **Trading Company Income (Myton Hospice Promotions Limited)**
Retail continued to recover strongly in the post-pandemic world, maintaining a strong position throughout the year, ultimately achieving sales figures considerably in excess of budget, which when combined with reduced costs produced a bottom line result substantially ahead of budget targets set and well ahead of the prior year.
Gross retail income totalled £2,617,123 in 2022/23 (2021/22 - £2,066,347), a superb post-pandemic aided increase year on year of 26.7%, and also a remarkable achievement in being 15.1% ahead of the last pre-pandemic position achieved in 2019/20. Retail net contribution to the charity reached a superb £872,330 in 2022/23 (£623,084 in 2021/22), a 40.0% improvement year on year and an incredible 59.7% up on the last pre-pandemic figures.
Gross income from Lottery saw a 4.2% increase in 2022/23 to £2,261,103 (2021/22 - £2,169,351) and continues to contribute strongly to our overall income. Retention and stability are key performance measures, and once again the loyalty of Myton’s supporters is illustrated by a negligible fall of just 24 lines year on year, to 38,293 (38,269 in 2021/22) at the end of March 2023.
Net contribution from the Lottery saw a very small increase year on year, contributing £1,462,078 to overall charitable performance, around £10k more than the previous year. In a very competitive sector of charity / society lotteries, Myton still maintains the largest single hospice lottery in the UK. In total the trading company gift-aided £1,234,646 to the charity (£1,145,178 in 2021/22).
## **Direct Costs of Patient Care**
Direct costs of patient care totalled £7,561,931 (2021/22 - £6,929,447). As admissions continue to return to normal historical levels, so the direct costs of patient care increased on those of 2021/22.
## **Indirect Patient Care Costs**
Including the impact of efficiency measures, total indirect costs increased marginally in the year. The totals were £1,206,062 (2021/22 - £1,199,702) a 0.5% increase on the prior year.
## **Total Funds**
At the year end, the total funds of the group stood at £15,160,834 (2021/22 - £15,460,167) including restricted funds which totalled £189,440 (2021/22 - £147,825), a fall almost entirely attributable to unrealised investment losses. The assets representing each of these funds are analysed in Note 22 to the financial statements.
9
**THE MYTON HOSPICES**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **b. GOING CONCERN**
After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
## **c. PRINCIPAL RISKS AND UNCERTAINTIES**
A risk register for the charity is maintained and reviewed by the Trustees at each quarterly subcommittee and then at each Board meeting. Currently the top five corporate risks are as follows:
1. **Voluntary income in the coming year** . The continuing trend of NHS grant funding failing to keep pace with inflation places an ever greater emphasis on voluntary income streams, which make up around 80% of total income. We need to be confident that we can rely on the generous support of our donor base. High inflation, the continuing cost of living crisis and the ongoing conflict in Ukraine means donors pockets could potentially be less deep until the economy fully recovers. Our fundraising, retail and lottery teams are well resourced and continue to defy concerns but trustees are rightly concerned that any downturn in these areas would have an immediate impact on performance and reserves.
2. **Staff recruitment and retention.** The mere fact that we carry c£0.5m pay vacancy expectations in our budget highlights the ongoing challenges around maintaining adequate staffing levels. Competition for staff in all areas is fierce, further fuelled by maintained sector disputes with central government over inflationary pay awards, which in turn impact on pay levels required to recruit and retain an effective workforce. With the charity sector always likely to remain behind the private and public sector in overall pay and conditions, and well resourced national charities responding with a more competitive pay offer, the increased competition leaves local charities like Myton particularly vulnerable. The post pandemic world is also proving challenging for the recruitment of volunteers, such an important component of the Myton offer. Mitigation responses continue to be strong but we could reach a point where the numbers alone outweigh the ability to respond, with the risk of service provision suffering as a consequence.
3. **The resilience of the medical and nursing teams** . With a permanently under resourced patient care provision, the burden of maintaining services falls on existing colleagues, who are regularly asked to cover shortfalls. Over time this impacts on staff morale, a problem exacerbated by recent strike activity, where we repeatedly sought additional shifts from our medical team. The diligence, professionalism and effectiveness of our people function supports our patient care team in managing this ongoing challenge.
4. **All Staff and volunteer retention, wellbeing and resilience** . Strategies for retaining staff and volunteers in itself provides strong mitigation against the risks driven by a constant recruiting environment. Our newly developed people processes are hugely important as we seek to maintain a happy and productive workforce. The team is better able to service the multiple needs of the substantial paid and unpaid employee base of the charity, maintaining not only support for our core services teams but also the vital work of our retail function, where shop managers are almost entirely supported by willing volunteers. The deployment of surveys, a new staff forum and other initiatives are now embedded, proactively providing ways of looking after our most vital resource.
10
**THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
5. **Economic Conditions** . Ongoing global and domestic market forces continue to be a cause of great concern. The uncertainty around events in Ukraine and the potential for further escalation continue to influence the cost of the key resources in the world of hospices, most notably food and energy prices, as well as influencing investment returns that provide a small but vital component of our revenue streams. Whilst largely beyond the control of trustees, these issues are regularly considered at finance committee meetings, with appropriate mitigation introduced wherever possible.
## **d. RESERVES POLICY**
The reserves policy of four months, or around £4m running costs continues. The funds are held in a long-term, medium risk investment portfolio. Additional reserves are held for the purpose of a future Estates Strategy and other innovation projects to grow service provision, with funds allocated through a series of designated funds.
Total funds of the group at the year-end stood at £15,160,834 (2021/22 - £15,460,167). Restricted funds totalled £189,440 (2021/22 - £147,825) and unrestricted funds totalled £14,971,394 (2021/22 - £15,312,342). Free reserves of the group at the year end, stood at £936,490 (2021/22 - £539,240).
Designated funds totalled £14,034,904 (2021/22 - £14,773,102) which is made up of the following funds:
- fixed asset fund of £7,213,278 (2021/22 - £7,345,016),
- investment fund of £4,586,399 (2021/22 - £4,773,085),
- the service expansion fund of £116,679 (2021/22 - £116,730) and the Warwick hospice improvements fund of £500,000 (2021/22 - £500,000).
Further designated funds have been agreed as project funds for projects that the trust board have agreed will help the sustainability of the organisation financially and will extend the reach of the Hospice to those who are currently unable to access Hospice services:
- Hospice outside of the walls project £465,963
- Digital strategy and transformation project £152,585
- Innovation Fund £1,000,000
The assets representing each of these funds are analysed in Note 22 to the financial statements.
## **e. PRINCIPAL FUNDING**
The Hospice is aware that the commissioning of end of life services across Coventry and Warwickshire is likely to change in the coming years as CCG's work collaboratively to commission services. Myton is ensuring its presence in these commissioning rounds and working to protect and grow this valuable income.
Myton is also working collaboratively with other healthcare organisations and hospices to offer commissioned services where appropriate within the Coventry and Warwickshire area.
11
**THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **Structure, governance and management**
## **a. CONSTITUTION**
The company and the group is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 25th February 2009. The company and the group is constituted under a Memorandum of Association dated 25th February 2009 and is a registered charity number 516287. The principal object of the company and the group is to provide care to patients and their families in the Coventry and Warwickshire area, from the time that they receive the diagnosis that their illness is incurable. On November 16[th] 2022 a special resolution was adopted by trustees introducing modified articles of association, the primary changes being the introduction of a winding up clause and the removal of a clause capping the number of trustees at twelve. Fuller details of the structure are set out below.
## **b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES**
The Board of the Myton Hospices is made up of not less than 4 Trustees, of which 2 of the roles must be medical representatives. All Trustees are appointed for an initial period of three years, commencing with the first Annual General Meeting following their appointment and may apply for re-election to serve up to three terms, each of which is a period of three years. After serving a third period, the Director must step down, but may offer him/herself for re-election after a period of twelve months.
All Trustees are registered volunteers, recognised as Directors of The Myton Hospices on the Companies' House records and members of the charity. The Board is ultimately responsible for Myton Hospices care, finances, buildings and compliance. The Trustee Board are accountable to the Care Quality Commission, Companies House, the Gambling Commission, and the Charity Commission for their activities and those of the hospices related.
## **c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES**
Trustees are provided with a programme of induction including meeting with all of the executive team and any other key personnel in order to gauge an understanding of how the hospice works on a day to day basis. Trustees are encouraged to spend time within the clinical areas of the hospice, and to attend fundraising events.
## **d. PAY POLICY FOR SENIOR STAFF**
Working in the Charity sector Myton believes that it is important to be transparent about the pay levels of its senior managers and how those salaries are set. Our salaries are benchmarked against similar roles in the Midlands charity sector using an external independent UK salary database. For all roles, including senior posts, Myton’s pay strategy is for salaries to be between the lower and median quartiles for equivalent positions. with some flexibility applied to take into consideration the specific requirements for each post and to ensure that we can recruit and retain the best people for the role with both the skills required and the passion for the service.
12
**THE MYTON HOSPICES**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
Our executive team is made up of the following roles:
Chief Executive Officer Medical Director * Director of Nursing, Care and Service Development Director of Finance and Commercial Development Director of People Services Director of Corporate Resources Director of Income Generation and Supporter Engagement
*Our Medical Director is employed by South Warwick NHS Foundation Trust and provides 50% of their time as Medical Director and 50% of their time as a Consultant in Palliative Medicine, caring for our patients.
The total annual costs during 2021/22 of the Senior Leadership Team who are employed by Myton are £502,000 pa (net of NI and pension costs) (2021/22 - £490,000 pa).
## **e. ORGANISATIONAL STRUCTURE AND DECISION MAKING**
There are clear distinctions between the roles of Trustees and the executive team. The board of trustees holds a range of reserved matters and delegates certain authority to the executive team in order to run the organisation efficiently. Matters such as policy, strategy and budgets are prepared by the executive team for consideration and approval by the trustees who then monitor the implementation of these plans. There are a number of board committees, all with clear terms of reference. They have elected members of both the board of trustees and the executive team who have been selected for their particular skills, experience and knowledge. Committee's meet at least once per quarter and report into the main board meetings.
During the year the committees operated are as follows:
- Clinical Governance Committee, which is responsible for patient care, safety, activity and quality.
- Finance and Audit Committee, which monitors the Charity's financial position.
- The Income Generation Committee (Trading Board for the Myton Hospice Promotions Company) which monitors the fundraising activities of the trading company.
- The People and Workforce Committee, this committee is responsible for staff wellbeing, recruitment and retention, and training.
- The Information Governance Committee, which monitors data security and information governance of the organisation.
- The Marketing Committee, is responsible for the public image of the charity, including both internal and external communications.
## **Charity Governance Code**
The trustees are aware of the new guidance and a governance review was undertaken to assess the charity's compliance with the guidelines. The code was a key reference point during a review of governance, including the adoption of new articles of association in the year, and a wholesale review of underpinning governance procedures undertaken during the year. A new scheme was developed for implementation from April 2023, improving and simplifying governance.
13
**THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **f. RISK MANAGEMENT**
The Hospice is committed to effective risk management as an integral part of ensuring good corporate governance. Risk can be to patients and relatives, staff, financial or reputational. The executive team have recognised a need for ongoing management of risks to the organisation. When risks are identified they are allocated to a member of the executive team, and that team member becomes responsible for identifying actions to be taken to mitigate the risk.
Each governing committee reviews the risks associated with their area of expertise. As trustees, the board concentrates its efforts on ensuring the most serious risks are being managed effectively. The Hospice continues to improve and refine the risk management processes. As identified in the Principal Risks and Uncertainties section of this report, the top five risks for the Hospice at the 31st March 2023 are as follows:
1. Voluntary income in the coming year.
2. The resilience of the medical team.
3. Staff wellbeing and resilience.
4. Staff recruitment.
5. Economic Conditions.
General economic conditions are now seen as a greater risk than the global pandemic.
The Trustees have assessed the major risks to which the company and the group is exposed, in particular those related to the operations and finances of the company and the group and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
## **g. TRUSTEES’ INDEMNITIES**
Qualifying third party indemnity provision is in place for the benefit of all Trustees of the charitable company. This cover is up to £1,000,000 and costs £3,632.
## **FUTURE DEVELOPMENTS**
## **Strategy 2023-26**
April 2023 sees Myton embark on delivery of its new three year strategy. The objectives set out within it are rightly very patient outcome focussed, as well as being geared to achieving the business growth required to underpin the bold ambitions therein. In order to optimise the resources available to trustees and executive team, we have focussed on five key themes, as follows;
_Community : Families : Beds : Influence & Education : Resilience_
The overarching aims can be summarised under the headline;
_To reach more people earlier in their illness and be with them and their families every step of the way_
14
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **Governance**
Following the introduction of a new governing document in 2022/23 and in preparation for the new three strategy, trustees set about preparing a new underpinning governance framework to optimise support to the executive team. An overly burdensome sub-committee structure was seen as a contributory factor to sub-optimal executive capacity, with a need to free up management time to deliver the bold and ambitious expansion plans set out in the new strategy. From April 2023 the new scheme of management takes effect, with streamlined quarterly meetings in place, providing more time for the CEO and senior team to enhance patient care, reaching more patients, sooner in their journey, including more support for families and friends.
## **Innovation**
With strong patient and family care and support already emphatically being delivered despite the challenging economic landscape, the emphasis on future development requires a more innovative approach, in order to extend our reach and influence. With this in mind Trustees are seeking to maximise our strong reserves position, so have allocated a designated fund of £1m, for the executive team to explore imaginative new ways to support the local community.
## **Equality, Diversity & Inclusion**
The aims within the new strategy are to reach not just more people but also a broader demographic within our patient base, making Myton a fully inclusive charity, much more aligned to the communities we serve within the region of Coventry & Warwickshire. With around three quarters of a million people living in the area we reach, exists a broad spectrum of profiles, in terms of poverty and wealth, faith, age and ethnicity. We want Myton to be known as the hospice for all, providing care in our in patient units, in people’s own homes and in our day centres, irrespective of background or financial means.
## **Community**
Coventry and Warwickshire patients living with a terminal illness and their loved ones should have access to the right information and advice from the moment they are told their illness cannot be cured. They should be able to receive high quality care and support in their homes and in the community when they need it. The needs of different individuals and communities must be considered and services designed to meet them. Patients whose preference is to die at home should have their symptoms and their pain better controlled so that admission into hospital can be avoided.
## _**In three years Myton will have expanded and positioned our services within the community to enable and encourage more people to access them as early possible.**_
## **Families**
Patients with complex needs should have access to Specialist Palliative Care beds when they need them. Patients approaching the end of life should have access to a bed supported by staff trained in Palliative and End of Life Care both inside and outside of the hospice. This is necessary to meet current and predicted demand and to ensure that patients dying in hospital who would prefer to die in a hospice have access to a hospice bed. Patients and families needing respite should have access to Respite beds.
## _**In three years Myton will have ensured that more families and carers are supported to cope and care for themselves and their loved ones.**_
15
**THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **Beds**
Patients with complex needs should have access to specialist palliative care beds when they need them. Patients approaching the end of life should have access to a bed supported by staff trained in palliative and end of life care both inside and outside of the hospice. This is necessary to meet current and predicted demand and to ensure that patients dying in hospital who would prefer to die in a hospice have access to a hospice bed. Patients and families needing respite should have access to Respite beds.
## _**In three years Myton will have improved access to Myton supported palliative care beds.**_
## **Influence & Education**
Referrers and healthcare professionals need to know what palliative and end of life care is available to their patients, when it is available and the benefits of being referred early. There needs to be more hospice supported beds in the community and they should be provided by trained palliative care clinicians. The patient and carers view should be the biggest influence in the design of the services they need and their voices must be heard. As experts in specialist palliative and end of life care we will use our knowledge and expertise to influence the debate about death and dying and to shape the wider palliative and end of life care strategy.
## _**In three years Myton will have positively influenced the experience of patients with palliative with and end of life care needs and will lead strategic work.**_
## **Resilience**
Myton must protect its workforce, infrastructure and finances so that services for patients and families are secure for the future. It is vital that negotiations with funders and supporters remain a priority so that we can continually improve across all areas of our business, so that all services result in the very best outcomes for patients and remain excellent value. With hard-pressed resources it is essential to work in partnership to achieve the maximum benefit for patients and families, whilst ensuring we maintain our unique identity and strong brand.
## _**In three years, Myton will continue to be a financially strong organisation, ensuring that our workforce, infrastructure and finances achieve the optimum benefit for patients and families.**_
## **Development, Reach and Growth**
In practice the strategy hinges on the provision of extra service, extra reach and achieving the financial means to achieve them. Returning to the bed provision of 20 beds in each hospice is a must, as is ensuring more home visits to patients and broadening access to more of our services such as wellbeing, therapies, respite care and lymphoedema treatment. Creating improved access to advice and guidance for patients and families, earlier in their post diagnosis phase is also seen as critical to the success of the strategy.
Away from patient care, expansion of our charity shops portfolio, improved negotiations for core NHS contracts and maintaining/growing our excellent lottery will be vital to continued success. We need to find new imaginative ways for our existing and new donors to support Myton. Our people function will continue to evolve, particularly through supporting our efforts in ensuring that we cater for the broadest possible spectrum of stakeholders in Coventry & Warwickshire, through employment, volunteering and governance, in addition to wider patient reach.
16
**THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
Complacency is the enemy of progress, with everyone at Myton totally committed to ensuring that we not only continue to excel at everything we are already known for, but also that we thrive in future, making Myton an even more successful charity than has proved to be the case for over 40 years. Our patients, families, benefactors, staff, volunteers and trustees deserve no less.
## **FUNDS HELD AS CUSTODIAN**
The Charity acts as an agent in administering funds for "GP PMS Education" on behalf of the NHS. An amount of £11,269 (2021/22 - £11,269) is included in other creditors relating to undistributed funds.
## **PEOPLE WITH DISABILITIES**
Employees have been consulted on issues of concern to them by means of regular consultative committee and staff meetings and have been kept informed on specific matters directly by management. The company and the group carries out exit interviews for all staff leaving the organisation and has adopted a procedure of upward feedback for senior management and the Trustees.
The company and the group have implemented a number of detailed policies in relation to all aspects of personnel matters including:
- Equality, Diversity & Inclusion (EDI) policy
- Volunteers' policy
- Health & safety policy
In accordance with the company and the group's EDI Policy, the company and the group have long established fair employment practices in the recruitment, selection, retention and training of disabled staff.
Full details of these policies are available from the company and the group's offices.
17
**THE MYTON HOSPICES (A company limited by guarantee)**
## **TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2023**
## **TRUSTEES’ RESPONSIBILITIES STATEMENT**
The Trustees (who are also directors of The Myton Hospices for the purposes of company law) are responsible for preparing the Trustees' 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 Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies; and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **DISCLOSURE OF INFORMATION TO AUDITOR**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information.
This report was approved by the Trustees, on 22 November 2023 and signed on their behalf by:
**Mr K W Demian Chairman**
18
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MYTON HOSPICES**
## **OPINION**
We have audited the financial statements of The Myton Hospices (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 March 2023 set out on pages 22 to 52. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In our opinion the financial statements:
- give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 March 2023 and of the group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ·
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **BASIS FOR OPINION**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **CONCLUSIONS RELATING TO GOING CONCERN**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
19
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MYTON HOSPICES**
## **OTHER INFORMATION**
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.
## **OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees’ Report and the Group Strategic Report have been prepared in accordance with applicable legal requirements.
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
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:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
20
**THE MYTON HOSPICES**
**(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MYTON HOSPICES**
## **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 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;
- Reviewing minutes of meetings of those charged with governance; and
- Enquiry of management to identify any instances of non-compliance with laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's report. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **USE OF OUR REPORT**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Gregg Olner MPhil BA(Hons) ACA (Senior Statutory Auditor) For and on behalf of Harrison Beale & Owen Limited Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 11 Highdown Road Leamington Spa Warwickshire CV31 1XT
22 November 2023
21
## **THE MYTON HOSPICES**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023**
|Note
**INCOME FROM:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
Other income
6
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds:
Voluntary and trading income
8
Investment management
Charitable activities
**TOTAL EXPENDITURE**
7
**NET INCOME/(EXPENDITURE) BEFORE**
**INVESTMENT GAINS/(LOSSES)**
Net (losses)/gains on investments
**NET INCOME/(EXPENDITURE) BEFORE**
**TRANSFERS**
Transfers between funds
**NET INCOME/(EXPENDITURE) BEFORE**
**OTHER RECOGNISED GAINS AND**
**LOSSES**
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**funds**
**2023**
**£**
**Restricted**
**funds**
**2023**
**£**
**Total**
**funds**
**2023**
**£**
_Total_
_funds_
_2022_
_£_
**4,158,288**
**365,615**
**4,523,903**
_4,693,114_
**2,683,990**
**-**
**2,683,990**
_2,529,077_
**4,921,323**
**-**
**4,921,323**
_4,262,651_
**130,832**
**19,762**
**-**
**-**
**130,832**
**19,762**
_93,321_
_28,813_|
|---|---|
||**11,914,195**
**365,615**
**12,279,810**
_11,606,976_|
||**3,495,496**
**-**
**3,495,496**
_3,015,168_
**21,061**
**-**
**21,061**
_22,697_
**8,552,613**
**215,380**
**8,767,993**
_8,129,149_|
||**12,069,170**
**215,380**
**12,284,550**
_11,167,014_|
||**(154,975)**
**150,235**
**(4,740)**
_439,962_
**(294,593)**
**-**
**(294,593)**
_163,420_|
||**(449,568)**
**150,235**
**(299,333)**
_603,382_
**108,620**
**(108,620)**
**-**
_-_|
||**(340,948)**
**41,615**
**(299,333)**
_603,382_
**(340,948)**
**41,615**
**(299,333)**
_603,382_
**15,312,342**
**147,825**
**15,460,167**
_14,856,785_|
||**14,971,394 **
**189,440**
**15,160,834 **
_15,460,167_|
The notes on page 27 to 52 form part of these financial statements.
22
## **THE MYTON HOSPICES**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022**
|Note
**INCOME FROM:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
Other income
6
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds:
Voluntary and trading income
8
Investment management
Charitable activities
**TOTAL EXPENDITURE**
7
**NET INCOME/(EXPENDITURE) BEFORE**
**INVESTMENT GAINS/(LOSSES)**
Net gains on investments
**NET INCOME/(EXPENDITURE) BEFORE**
**TRANSFERS**
Transfers between funds
**NET INCOME/(EXPENDITURE) BEFORE**
**OTHER RECOGNISED GAINS AND**
**LOSSES**
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**funds**
**2022**
**£**
**Restricted**
**funds**
**2022**
**£**
**Total**
**funds**
**2022**
**£**
_Total_
_funds_
_2021_
_£_
_4,219,764_
_473,350_
_4,693,114_
_6,720,674_
_2,529,077_
_-_
_2,529,077_
_2,659,603_
_4,262,651_
_-_
_4,262,651_
_3,005,720_
_93,321_
_28,813_
_-_
_-_
_93,321_
_28,813_
_70,732_
_15,890_|
|---|---|
||_11,133,626_
_473,350_
_11,606,976_
_12,472,619_|
||_3,015,168_
_-_
_3,015,168_
_2,959,667_
_22,697_
_-_
_22,697_
_17,073_
_7,706,395_
_422,754_
_8,129,149_
_7,657,989_|
||_10,744,260_
_422,754_
_11,167,014_
_10,634,729_|
||_389,366_
_50,596_
_439,962_
_1,837,890_
_163,420_
_-_
_163,420_
_560,027_|
||_552,786_
_50,596_
_603,382_
_2,397,917_
_94,808_
_(94,808)_
_-_
_-_|
||_647,594_
_(44,212)_
_603,382_
_2,397,917_
_647,594_
_(44,212)_
_603,382_
_2,397,917_
_14,664,748_
_192,037_
_14,856,785_
_12,458,868_|
||_15,312,342_
_147,825_
_15,460,167_
_14,856,785_|
23
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023**
|Note
**FIXED ASSETS**
Intangible assets
14
Tangible assets
15
Investments
16
**CURRENT ASSETS**
Stocks
18
Debtors
19
Cash at bank and in hand
**CREDITORS:**amounts falling due
within one year
20
**NET CURRENT ASSETS**
**NET ASSETS**
**CHARITY FUNDS**
Restricted funds
22
Unrestricted funds
22
**TOTAL FUNDS**|**£**
**72,239**
**546,232**
**4,183,810**|**2023**
**£**
**75,427**
**7,137,851**
**4,586,399**|_£_
_63,122_
_1,357,093_
_4,039,105_|_2022_
_£_
_76,073_
_7,268,943_
_4,773,085_|
|---|---|---|---|---|
|||**11,799,677**
**3,361,157**||_12,118,101_
_3,342,066_|
||**4,802,281**
**(1,441,124)**||_5,459,319_
_(2,117,253)_||
||||||
|||**15,160,834**||_15,460,167_|
|||**189,440**
**14,971,394**||_147,825_
_15,312,342_|
|||**15,160,834 **||_15,460,167_|
The financial statements were approved and authorised for issue by the Trustees on 22 November 2023 and signed on their behalf by:
## **Mr K W Demian Chairman**
The notes on pages 27 to 52 form part of these financial statements.
24
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **CHARITY BALANCE SHEET AS AT 31 MARCH 2023**
|Note
**FIXED ASSETS**
Intangible assets
14
Tangible assets
15
Investments
16
**CURRENT ASSETS**
Stocks
18
Debtors
19
Cash at bank and in hand
**CREDITORS:**amounts falling due
within one year
20
**NET CURRENT ASSETS**
**NET ASSETS**
**CHARITY FUNDS**
Restricted funds
22
Unrestricted funds
22
**TOTAL FUNDS**|**£**
**31,655**
**496,987**
**3,847,698**|**2023**
**£**
**75,427**
**7,137,851**
**4,631,753**|_£_
_32,298_
_1,872,461_
_3,168,834_|_2022_
_£_
_76,073_
_7,268,943_
_4,818,439_|
|---|---|---|---|---|
|||**11,845,031**
**3,260,167**||_12,163,455_
_3,240,343_|
||**4,376,340**
**(1,116,173)**||_5,073,593_
_(1,833,250)_||
||||||
|||**15,105,198**||_15,403,798_|
|||**189,440**
**14,915,758**||_147,825_
_15,255,973_|
|||**15,105,198**||_15,403,798_|
The financial statements were approved and authorised for issue by the Trustees on 22 November 2023 and signed on their behalf by:
## **Mr K W Demian Chairman**
The net outgoing resources for the financial year dealt with in the financial statements of the parent Charity were £298,600 (2022: net incoming resources £604,127).
The notes on pages 27 to 52 form part of these financial statements.
25
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023**
|Note
**Cash flows from operating activities**
Net cash inflow from operating activities
24
**Cash flows from investing activities**
Dividends and interest from investments
Proceeds from disposal of tangible fixed assets
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents brought forward
**Cash and cash equivalents carried forward**
25|**2023**
**2022**
**£**
**£**
**337,410**
_1,307,357_|
|---|---|
||**130,832**
**373**
_93,321_
_-_
**(216,002)**
_(252,577)_
**552,565**
_300,382_
**(660,472)**
_(1,208,696)_|
||**(192,704)**
_(1,067,570)_|
||**144,706**
_239,787_
**4,039,104**
_3,799,317_|
||**4,183,810**
_4,039,104_|
26
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1. CHARITY INFORMATION**
The Myton Hospices (the Charity) is a Company Limited by Guarantee (registered number 1628455), registered in England and Wales. Its charity registration number is 516287. The registered office and principal place of business is Myton Lane, Warwick, CV34 6PX.
Its principal activities are specialist palliative and end of life care for the people of Coventry and Warwickshire, and provision of education in palliative and end of life care to healthcare professionals in Coventry and Warwickshire.
## **2. ACCOUNTING POLICIES**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Myton Hospices meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Statement of financial activities (SOFA) and Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
No separate SOFA has been presented for the Charity alone as permitted by section 408 of the Companies Act 2006.
Trustees have a reasonable expectation that The Myton Hospices has adequate resources to continue in operational existence for the foreseeable future. There are no material uncertainties about the charity's ability to continue and therefore the Trustees adopt the going concern basis of accounting in preparing the financial statements. ·
## **2.2 Company status**
The company is a company limited by guarantee, incorporated in the United Kingdom. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
27
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **2. ACCOUNTING POLICIES (continued)**
## **2.3 Basis of consolidation**
The financial statements consolidate the accounts of The Myton Hospices and all of its subsidiary undertakings ('subsidiaries').
The Charity has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own income and expenditure account.
## **2.4 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.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
28
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **2. ACCOUNTING POLICIES (continued)**
## **2.5 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the Charity, or the Charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Income from government and other grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Donated services or facilities are recognised when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the Charity of the item is probable and the economic benefit can be measured reliably.
Clothing and other items donated for resale through the charity's shops are included as incoming resources within other trading activities when they are sold. They are not included at valuation prior to being sold as it has been deemed impractical to measure the fair value of the goods and the cost of valuation would outweigh the benefit to the users of the accounts.
The hospice receives the help and support of up to 1,200 volunteers, who help in every aspect of the organisation, and are both patient facing and within support services, as well as fundamental in the delivery of fundraising activities. Due to an absence of a reliable measurement basis, the contribution of these general volunteers has not been accounted for.
Lottery income is recognised when receivable.
Investment income is included when receivable.
29
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **2. ACCOUNTING POLICIES (continued)**
## **2.6 Expenditure**
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of charitable activities. Specifically, it comprises those costs of trading for fundraising purposes including the charity's shops and lottery.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees.
Redundancy payments are accounted for as staff costs and are recognised on communication of intention to pay.
All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resources. Costs relating to a particular activity are allocated directly. Remaining support costs are all charged to charitable expenditure since those relating to fundraising are considered immaterial.
## **2.7 Going concern**
We have set out in the Trustees' Report a review of the financial performance and the charity's reserves position. We have a reasonable expectation that we have adequate resources to continue in operational existence for the foreseeable future. We believe that there are no material uncertainties that call into doubt the charity's ability to continue. The financial statements have therefore been prepared on the basis that the charity is a going concern.
## **2.8 Intangible fixed assets and amortisation**
Software assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost of intangible assets, over their expected useful lives which is estimated at between 5-10 years.
Amortisation is charged to expenditure on charitable activities in the Statement of financial activities.
30
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **2. ACCOUNTING POLICIES (continued)**
## **2.9 Tangible fixed assets and depreciation**
All assets costing more than £2,000 are capitalised.
A review for impairment of a fixed asset is carried out where events or changes in circumstances indicate that the carrying amount of the fixed asset may otherwise be overstated. Such events or changes in circumstances include changes in useful life arising from changes in business activities or environment, significant decline in an asset's market value during the period, or evidence of obsolescence or physical damage to the' asset. Impairment losses arising are charged to the Statement of financial activities.
Where the impairment is subsequently reduced or removed the carrying value is reinstated to the lower of the revised value or the amount at which it would have been carried had no impairment occurred, the amount of impairment released being credited to the Statement of financial activities.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
|Freehold property|- 20 - 40 years|
|---|---|
|Freehold land|- Not depreciated|
|L/Term leasehold property|- Over the period of lease or 50 years|
|Property improvements|- 3 - 10 years|
|Furniture, equipment and vehicles|- 3 - 10 years|
|Computer and office equipment|- 3 - 10 years|
|Shop and office fittings|- Over period of lease|
## **2.10 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Gains/(losses) on investments' in the Statement of financial activities.
## (i) Subsidiary undertakings
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.11**
## **Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.
## **2.12 Operating leases**
Rentals under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.
31
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **2. ACCOUNTING POLICIES (continued)**
## **2.13 Stocks and work in progress**
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.14 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered.
## **2.15 Cash at Bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.16 Creditors and provisions**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
## **2.17 Financial instruments**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.18 Pensions**
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
The Charity operates a defined benefits pension scheme. The scheme is a multi-employer scheme where it is not possible, in the normal course of events, to identify on a consistent and reasonable basis, the share of underlying assets and liabilities belonging to individual participating employers. Therefore the Charity accounts for this scheme as if it was a defined contribution scheme. The amount charged to the Statement of financial activities represents contributions payable to the scheme in respect of the accounting period.
32
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **2. ACCOUNTING POLICIES (continued)**
## **2.19 Significant judgements and estimates**
Preparation of the financial statements may require management to make significant judgements and estimates.
## Significant judgements
Donated goods for resale are not included at valuation prior to being sold as it has been deemed impractical to measure the fair value of the goods and the cost of valuation would outweigh the benefit to the users of the accounts.
## Significant estimates
There are no significant estimates having a material effect on the financial statements.
During the year the lease of The Myton Hospice, University Hospital, Coventry was extended to 1 April 2084. The depreciation accounting estimate has been updated prospectively to reflect that the asset now has a longer economic useful life. The net book value of the leasehold property has been depreciated over the remaining expected useful life. The change in accounting estimate has reduced the depreciation charge in the year by £145,255.
## **2.20 Agency arrangements**
The Charity acts as an agent in administering funds for "GP PMS Education" on behalf of the NHS and in administering funds for the project "difficult conversations" on behalf of the NHS. Income and expenditure in relation to the projects are excluded from the statement of financial activities as the Charity does not have control over the charitable application of the funds. The funds received and paid and any balances held are disclosed in note 21.
## **3. INCOME FROM DONATIONS AND LEGACIES**
|
Donations
Legacies
Grants:
Local Authority Infection Control
Hospice UK Covid-19
Retail, Hospitality and Leisure Fund
Coronavirus Job Retention Scheme
Total donations, legacies and grants
_Total 2022_|**Unrestricted**
**funds**
**2023**
**£**
**Restricted**
**funds**
**2023**
**£**
**Total**
**funds**
**2023**
**£**
_Total_
_funds_
_2022_
_£_
**2,888,999**
**282,456**
**3,171,455**
_2,473,787_
**1,269,289**
**-**
**1,269,289**
_1,769,597_
**-**
**-**
**-**
**-**
**-**
**83,159**
**-**
**-**
**-**
**83,159**
**-**
**-**
_90,748_
_239,733_
_81,337_
_37,912_|
|---|---|
||**4,158,288**
**365,615**
**4,523,903**
_4,693,114_|
||_4,219,764 _
_473,350_
_4,693,114_|
33
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **4. INCOME FROM CHARITABLE ACTIVITIES**
|||**Unrestricted**|**Total**|_Total_|
|---|---|---|---|---|
|||**funds**|**funds**|_funds_|
|||**2023**|**2023**|_2022_|
|||**£**|**£**|_£_|
|NHS grants and contracts for patient care||**2,649,905**|**2,649,905**|_2,495,922_|
|Education and training income||**34,085**|**34,085**|_33,155_|
|||**2,683,990**|**2,683,990**|_2,529,077_|
||||||
|_Total_|_2022_|_2,529,077_|_2,529,077_||
|**.**|**OTHER TRADING INCOME - FUNDRAISING INCOME**||||
|||**Unrestricted**|**Total**|_Total_|
|||**funds**|**funds**|_funds_|
|||**2023**|**2023**|_2022_|
|||**£**|**£**|_£_|
|Retail income||**2,617,123**|**2,617,123**|_2,066,347_|
|Lottery income||**2,261,103**|**2,261,103**|_2,169,351_|
|Other income||**43,097**|**43,097**|_26,953_|
|||**4,921,323**|**4,921,323**|_4,262,651 _|
||||||
|_Total_|_2022_|_4,262,651 _|_4,262,651 _||
|**.**|**INVESTMENT INCOME**||||
|||**Unrestricted**|**Total**|_Total_|
|||**funds**|**funds**|_funds_|
|||**2023**|**2023**|_2022_|
|||**£**|**£**|_£_|
|Interest||**15,544**|**15,544**|_422_|
|Dividend income||**115,288**|**115,288**|_92,899_|
|||**130,832**|**130,832**|_93,321_|
||||||
|_Total_|_2022_|_93,321_|_93,321_||
## **5. OTHER TRADING INCOME - FUNDRAISING INCOME**
## **6. INVESTMENT INCOME**
34
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **7. ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE**
|Expenditure on raising voluntary
and trading income
Expenditure on investment
management
**Cost of raising funds**
Expenditure relating to delivery
of NHS grants and contracts for
patient care
_Total 2022_|**Staff**
**costs**
**£**
**Depreciation**
**£**
**Other**
**costs**
**£**
**Total**
**2023**
**£**
_Total_
_2022_
_£_
**1,843,879**
**-**
**1,651,617**
**3,495,496**
_3,015,168_
**-**
**-**
**21,061**
**21,061**
_22,697_|
|---|---|
||**1,843,879**
**-**
**1,672,678**
**3,516,557**
_3,037,865_
**6,762,670**
**345,982**
**1,659,341**
**8,767,993**
_8,129,149_|
||**8,606,549**
**345,982**
**3,332,019**
**12,284,550**
_11,167,014_|
||_7,556,404_
_498,280_
_3,112,330_
_11,167,014_|
## **8. EXPENDITURE ON RAISING VOLUNTARY AND TRADING INCOME**
|
Retail and lottery costs
Fundraising costs
Staff costs
_Total 2022_|**Unrestricted**
**funds**
**2023**
**£**
**Total**
**funds**
**2023**
**£**
_Total_
_funds_
_2022_
_£_
**1,488,464**
**1,488,464**
_1,351,613_
**163,153**
**163,153**
_101,486_
**1,843,879**
**1,843,879**
_1,562,069_|
|---|---|
||**3,495,496**
**3,495,496**
_3,015,168_|
||_3,015,168_
_3,015,168_|
35
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **9. ANALYSIS OF EXPENDITURE BY ACTIVITIES**
|NHS grants and contracts for patient care
_Total 2022_|**Activities**
**undertaken**
**directly**
**£**
**Support**
**costs**
**£**
**Total**
**2023**
**£**
_Total_
_2022_
_£_
**7,561,931 **
**1,206,062 **
**8,767,993**
_8,129,149_|
|---|---|
||_6,929,447_
_1,199,702 _
_8,129,149_|
## **10. DIRECT COSTS – NHS GRANTS AND CONTRACTS**
|Drugs
Medicinal supplies
Cleaning and laundry
Catering
Small equipment
Training
Governance
Contracted medical staff
Wages and salaries
National insurance
Pension cost
_Total 2022_|**2023**
**£**
_2022_
_£_
**234,917**
_207,670_
**117,986**
_100,379_
**45,138**
_35,870_
**79,960**
_54,135_
**33,098**
_128,859_
**34,486**
_43,644_
**10,000**
_(225)_
**243,676**
_364,779_
**5,762,173**
_5,152,821_
**559,011**
_448,294_
**441,486**
_393,221_|
|---|---|
||**7,561,931**
_6,929,447_|
||_6,929,447_|
36
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **11. SUPPORT COSTS – NHS GRANTS AND CONTRACTS**
|Premises costs
Travelling and subsistence
Office costs
Repairs and renewals
Legal and professional
Staff recruitment
Other costs
Loss on disposal of tangible fixed assets
Amortisation
Depreciation
_Total 2022_
**12.**
**NET INCOME/(EXPENDITURE)**
This is stated after charging:
Depreciation of tangible fixed assets
- owned by the charitable group
Auditor’s remuneration - audit
Auditor’s remuneration - non-audit
Auditor’s remuneration - tax
Operating lease rentals
During the year, no Trustees received any remuneration (2022 - £Nil)
During the year, no Trustees received any benefits in kind (2022 - £Nil)
During the year, no Trustees received any reimbursement of expenses|**2023**
**£**
_2022_
_£_
**178,710**
_193,372_
**29,392**
_19,366_
**152,624**
_127,260_
**211,373**
_146,965_
**28,423**
_(16,463)_
**6,392**
_11,514_
**251,782**
**1,384**
_219,408_
_-_
**14,546**
_18,378_
**331,436**
_479,902 _|
|---|---|
||**1,206,062 **
_1,199,702 _|
||_1,199,702 _
**2023**
**£**
_2022_
_£_
**331,436**
_479,902_
**14,025**
_14,025_
**-**
_-_
**1,250**
_1,250_
**407,845**
_420,614_|
||(2022 - £Nil)|
37
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **13. STAFF COSTS**
Staff costs were as follows:
|Staff costs were as follows:||
|---|---|
|Wages and salaries
Social security costs
Other pension costs|**2023**
**£**
_2022_
_£_
**7,396,335**
_6,545,548_
**691,138**
_555,721_
**519,076**
_455,135_|
||**8,606,549**
_7,556,404 _|
Non-statutory/non-contractual termination payments totalling £14,967 (2022: £Nil) were made to three (2022: Nil) employees.
The average number of persons employed by the company during the year was as follows:
|The number of higher paid employees was:
In the band £60,001 to £70,000
In the band £70,001 to £80,000
In the band £90,001 to £100,000|**2023**
**No.**
_2022_
_No._
**297**
_282 _|
|---|---|
||_2_
_3_
_2_
_1_
_1_
_1_|
Of the higher paid employees 1 member of the medical team is paid on the NHS pay scale (2021-22 : 1)
38
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **14. INTANGIBLE FIXED ASSETS**
|**Group and Company**
**Cost**
At 1 April 2022
Additions
At 31 March 2023
**Amortisation**
At 1 April 2022
Charge for the year
At 31 March 2023
**Carrying Amount**
At 31 March 2023
_At 31 March 2022_|**Software**
**£**
**198,510**
**13,900**|
|---|---|
||**212,410**|
||**122,437**
**14,546**|
||**136,983**|
||**75,427**|
||_76,073_|
## **15. TANGIBLE FIXED ASSETS**
|**Group**
**Cost**
At 1 April 2022
Additions
Disposals
At 31 March 2023
**Depreciation**
At 1 April 2021
Charge for the year
Disposals
At 31 March 2022
**Net book value**
At 31 March 2023
_At 31 March 2022_|**Freehold**
**Property**
**£**
**Long**
**Leasehold**
**Property**
**£**
**Furniture,**
**equipment**
**& vehicles**
**£**
**Computer**
**& office**
**equipment**
**£**
**Total**
**£**
**3,815,457**
**7,775,662**
**2,326,077**
**387,318**
**14,304,514**
**-**
**-**
**-**
**-**
**202,102**
**(68,789)**
**-**
**-**
**202,102**
**(68,789)**|
|---|---|
||**3,815,457**
**7,775,662**
**2,459,390**
**387,318**
**14,437,827**|
||**1,930,658**
**2,997,612**
**1,802,683**
**304,618**
**7,035,571**
**58,303**
**84,315**
**165,949**
**22,869**
**331,436**
**-**
**-**
**(67,031)**
**-**
**(67,031)**|
||**1,988,961**
**3,081,927**
**1,901,601**
**327,487**
**7,299,976**|
||**1,826,496**
**4,693,735**
**557,789**
**59,831**
**7,137,851**|
||**1,884,799**
**4,778,050**
**523,394**
**82,700**
**7,268,943**|
Included in freehold property is land of £1,114,199 which is not depreciated.
39
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **15. TANGIBLE FIXED ASSETS CONTINUED**
|**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 value**
At 31 March 2023
_At 31 March 2022_|**Freehold**
**Property**
**£**
**Long**
**Leasehold**
**Property**
**£**
**Furniture,**
**equipment**
**& vehicles**
**£**
**Computer**
**& office**
**equipment**
**£**
**Total**
**£**
**3,815,457**
**7,770,662**
**2,326,077**
**387,318**
**14,299,514**
**-**
**-**
**202,102**
**-**
**202,102**
**-**
**-**
**(68,789)**
**-**
**(68,789)**|
|---|---|
||**3,815,457**
**7,770,662**
**2,459,390**
**387,318**
**14,432,827**|
||**1,930,658**
**2,992,612**
**1,802,683**
**304,618**
**7,030,571**
**58,303**
**84,315**
**165,949**
**22,869**
**331,436**
**-**
**-**
**(67,031)**
**-**
**(67,031)**|
||**1,988,961**
**3,076,927**
**1,901,601**
**327,487**
**7,294,976**|
||**1,826,496**
**4,693,735**
**557,789**
**59,831**
**7,137,851**|
||_1,884,799_
_4,778,050_
_523,394_
_82,700_
_7,268,943_|
Included in freehold property is land of £1,114,199 which is not depreciated.
## **16. FIXED ASSET INVESTMENTS**
|**6.**
**FIXED ASSET INVESTMENTS**|||
|---|---|---|
|**Group**
**Market Value**
At 1 April 2022
Additions
Disposals
Revaluations
At 31 March 2023
**Group investments at market value comprise:**
Listed investments
Other fixed asset investments
Total market value
All of the fixed asset investments are held in the UK
**Group material investments**
Vanguard Funds PLC|**Listed**
**securities**
**£**
**4,705,585**
**660,472**
**(552,565)**
**(294,593)**|**Land**
**£**
**Total**
**£**
**67,500**
**4,773,085**
**-**
**660,472**
**-**
**-**
**(552,565)**
**(294,593)**
**67,500**
**4,586,399**
**2023**
**£**
_2022_
_£_
**4,518,899**
_4,705,585_
**67,500**
_67,500_|
||**4,518,899**||
||||
|||**4,586,399**
_4,773,085_|
|||**31 March**
**2023**
**£**
_31 March_
_2022_
_£_
**314,588**
_419,001_|
40
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **16. FIXED ASSET INVESTMENTS (continued)**
|**Charity**
**Listed**
**securities**
**£**
**Land**
**£**
**Market Value**
At 1 April 2022
**4,705,585**
**67,500**
Additions
**660,472**
**-**
Disposals
Revaluations
**(552,565)**
**(294,593)**
**-**
**-**
At 31 March 2023
**4,518,899**
**67,500**
**Charity investments at market value comprise:**
Listed investments
Other fixed asset investment
Group
Total
All the fixed asset investments are held in the UK|**Listed**
**securities**
**£**
**Land**
**£**
**4,705,585**
**67,500**
**660,472**
**-**
**(552,565)**
**(294,593)**
**-**
**-**|**Subsidiaries**
**£**
**Total**
**£**
**45,354**
**4,818,439**
**-**
**660,472**
**-**
**-**
**(552,565)**
**(294,593)**|
|---|---|---|
||**4,518,899**
**67,500**|**45,354**
**4,631,753**|
|||**2023**
**£**
_2022_
_£_
**4,518,899**
_4,705,585_
**67,500**
_67,500_
**45,354**
_45,354_|
|||**4,631,753**
_4,818,439_|
||||
## **17. PRINCIPAL SUBSIDIARIES**
100% of the issued share capital of Myton Hospice (Promotions) Limited and Myton Hamlet Hospice Development Limited is held by the Charity.
Myton Hospice (Promotions) Limited operates charity shops and a lottery to raise funds for the Charity. The company pays its taxable profits to the Charity by way of Gift Aid. The company is registered in England and its company number is 2663993. In addition to its trading results disclosed below, the company processed sales of £824,006 (2022: £686,978) relating to donated goods sold under the retail Gift Aid scheme. These figures are included as retail income on the Statement of Financial Activities.
Myton Hamlet Hospice Development Limited develops and builds properties which are then sold to the Charity. The company is registered in England and its company number is 3059410.
41
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **17. PRINCIPAL SUBSIDIARIES (continued)**
|Gross income
Expenditure
Gift aid to the Charity
Loss in the period
Net assets/(liabilities) at the year end
**18.**
**STOCKS**
Consumables
Goods for resale
**19.**
**DEBTORS**
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income|**Group**
**2023**
_2022_
**£**
_£_
**31,093**
_31,793_
**41,146**
_31,329_|**Myton**
**Hospice**
**(Promotions)**
**Limited**
**£**
**Myton Hamlet**
**Hospice**
**Development**
**Limited**
**£**
**4,090,579**
**-**
**(2,855,933)**
**(732)**
**(1,234,646)**
**-**|**Myton**
**Hospice**
**(Promotions)**
**Limited**
**£**
**Myton Hamlet**
**Hospice**
**Development**
**Limited**
**£**
**4,090,579**
**-**
**(2,855,933)**
**(732)**
**(1,234,646)**
**-**|
|---|---|---|---|
||||**-**
**(732)**|
||||**£**
**£**
**103,630**
**(2,641)**|
||||**Charity**
**2023**
_2022_
**£**
_£_
**31,093**
_31,793_
**562**
_505_|
||**72,239**
_63,122_||**31,655**
_32,298_|
||**Group**
**2023**
_2022_
**£**
_£_
**10,640**
_682,047_
**-**
_-_
**115,776**
_116,285_
**419,816**
_558,761_||**Charity**
**2023**
_2022_
**£**
_£_
**10,640**
_682,047_
**115,832**
_657,575_
**84,631**
_109,576_
**285,884**
_423,263_|
||**546,232**
_1,357,093_||**496,987**
_1,872,461_|
42
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **20. CREDITORS: amounts falling due within one year**
|Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
**Deferred income**
Deferred income at 1 April 2021
Resources deferred during the year
Amounts released from previous years
Deferred income at 31 March 2022|**Group**
**Charity**
**2023**
_2022_
**2023**
_2022_
**£**
_£_
**£**
_£_
**393,914**
_363,467_
**336,346**
_327,244_
**-**
_-_
**-**
_-_
**170,961**
_143,084_
**170,961**
_143,084_
**118,634**
_100,401_
**118,635**
_100,401_
**757,615**
_1,510,301_
**490,231**
_1,262,521_|
|---|---|
||**1,441,124**
_2,117,253_
**1,116,173**
_1,833,250_|
||**Group**
**Charity**
**2023**
_2022_
**2023**
_2022_
**£**
_£_
**£**
_£_
**831,880**
_987,623_
**645,263**
_807,133_
**283,739**
_24,747_
**83,529**
_-_
**(831,330)**
_(180,490)_
**(644,713)**
_(161,870)_|
||**284,289**
_831,880_
**84,079**
_645,263_|
Deferred income comprises lottery income received in advance by Myton Hospice (Promotions) Limited of £200,210 (2022: £186,617), Challenge Event income of £83,529 (2022: £30,378), Funding for Quality end of Life care for all training courses of £550 (2022: £4,900), NHS grants and contracts for patient care income of £Nil (2022: £599,985) and donation income received in advance of £Nil (2022: £10,000).
## **21. AGENCY ARRANGEMENTS**
The Charity acts as an agent in administering funds for "GP PMS Education" on behalf of the NHS. In the accounting period ending 31 March 2023 the Charity received £Nil (2022: £Nil) and disbursed £Nil (2022: £7,987) from the fund. An amount of £11,269 (2022: £11,269) is included in other creditors relating to undistributed funds.
The Charity acts as an agent in administering funds for the project ''difficult conversations" on behalf of the NHS. In the accounting period ending 31 March 2023 the Charity received £Nil (2022: £Nil) and disbursed £Nil (2022: £2,561) from the fund. An amount of £Nil (2022: £Nil) is included in other creditors relating to undistributed funds.
43
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **22. STATEMENT OF FUNDS**
|**Designated funds**
Fixed asset fund
Investment fund
Service expansion fund
Warwick hospice
improvements fund
Project funds:
Warwick IPU beds
Estates and equipment
capital expenditure
Expanding services
beyond Warwick walls
Digital strategy and
transformation project
Innovation fund
**General funds**
General Funds - all
funds
**Total Unrestricted funds**
**Restricted funds**
Other donations
Vehicle fund
Hospice UK Covid-19
fund
**Total of funds**|**Balance at**
**1 April**
**2022**
**Income Expenditure**
**Transfers**
**in/out**
**Gains/**
**(Losses)**
**Balance at**
**31 March**
**2023**
**£**
**£**
**£**
**£**
**£**
**£**
**7,345,016**
**-**
**(345,982)**
**214,244**
**-**
**7,213,278**
**4,773,085**
**115,288**
**(21,061)**
**13,680**
**(294,593)**
**4,586,399**
**116,730**
**-**
**(51)**
**-**
**-**
**116,679**
**500,000**
**300,000**
**67,779**
**488,547**
**181,945**
**1,000,000**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**(300,000)**
**-**
**(22,584)**
**(29,360)**
**-**
**-**
**-**
**(67,779)**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**500,000**
**-**
**-**
**465,963**
**152,585**
**1,000,000**|
|---|---|
||**14,773,102**
**115,288**
**(719,038)**
**160,145**
**(294,593) 14,034,904**|
||**539,240**
**11,798,907**
**(11,350,132)**
**(51,525)**
**-**
**936,490**|
||**15,312,342**
**11,914,195**
**(12,069,170)**
**108,620**
**(294,593) 14,971,394**|
||**126,160**
**282,456**
**(132,221)**
**(92,220) **
**-**
**184,175**
**21,665**
**-**
**-**
**83,159**
**-**
**(83,159)**
**(16,400)**
**-**
**-**
**-**
**5,265**
**-**|
||**147,825**
**365,615**
**(215,380)**
**(108,620)**
**-**
**189,440**|
||**15,460,167**
**12,279,810**
**(12,284,550)**
**-**
**(294,593) 15,160,834**|
44
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **22. STATEMENT OF FUNDS (continued)**
## **STATEMENT OF FUNDS – PRIOR YEAR**
||_Balance at_|_Income _|_Expenditure_|_Transfers_|_Gains/_|_Balance at_|
|---|---|---|---|---|---|---|
||_1 April_|||_in/out_|_(Losses)_|_31 March_|
||_2021_|||||_2022_|
||_£_|_£_|_£_|_£_|_£_|_£_|
|**Designated funds**|||||||
|_Fixed asset fund_|_7,590,719_|_-_|_(498,280)_|_252,577_|_-_|_7,345,016_|
|_Investment fund_|_3,701,351_|_92,899_|_(22,697)_|_838,112_|_163,420_|_4,773,085_|
|_Service expansion fund_|_142,524_|_-_|_(25,794)_|_-_|_-_|_116,730_|
|_Warwick hospice_|_500,000_|_-_|_-_|_-_|_-_|_500,000_|
|_improvements fund_|||||||
|_Project funds:_|||||||
|_Warwick IPU beds_|_300,000_|_-_|_-_|_-_|_-_|_300,000_|
|_Estates and equipment_|_100,000_|_-_|_-_|_(32,221)_|_-_|_67,779_|
|_capital expenditure_|||||||
|_Expanding services_|_500,000_|_-_|_(11,453)_|_-_|_-_|_488,547_|
|_beyond Warwick walls_|||||||
|_Digital strategy and_|_100,000_|_-_|_(18,055)_|_-_|_100,000_|_181,945_|
|_transformation project_|||||||
|_Income generation_|_100,000_|_-_|_-_|_-_|_(100,000)_|_-_|
|_opportunities_|||||||
|_Pandemic recovery_|_1,000,000_|_-_|_-_|_-_|_-_|_1,000,000_|
||_14,034,594_|_92,899_|_(576,279)_|_1,058,468_|_163,420_|_14,773,102_|
|**General funds**|||||||
|_General Funds - all_|_630,154_|_11,040,727_|_(10,167,981)_|_(963,660)_|_-_|_539,240_|
|_funds_|||||||
|**Total Unrestricted funds**|_14,664,748_|_11,133,626_|_(10,744,260)_|_94,808_|_163,420_|_15,312,342_|
|**Restricted funds**|||||||
|_Other donations_|_144,702_|_142,869_|_(91,708)_|_(69,703)_|_-_|_126,160_|
|_Vehicle fund_|_47,335_|_-_|_(565)_|_(25,105)_|_-_|_21,665_|
|_Hospice UK Covid-19_|_-_|_239,733_|_(239,733)_|_-_|_-_|_-_|
|_fund_|||||||
|_Local Authority Infection_|
_-_|_90,748_|_(90,748)_|_-_|_-_|_-_|
|_Control fund_|||||||
||_192,037_|_473,350_|_(422,754)_|_(94,808)_|_-_|_147,825_|
|**Total of funds**|_14,856,785_|_11,606,976_|_(11,167,014)_|_-_|_163,420_|_15,460,167_|
45
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **22. STATEMENT OF FUNDS (continued)**
The majority of transfers between funds represent the designation of project funds and the amount spent on fixed assets, which, now that the income has been spent in accordance with the donor’s wishes, have been transferred to the designated fixed asset fund.
## Designated funds
## Fixed assets fund
A large part of the unrestricted funds of the Charity are represented by tangible fixed assets (mainly land and buildings) required for the Charity to continue operating. As these assets are considered not normally realisable, the Trustees have designated funds equal to their book value.
## Investment fund
In the year ended 31 March 2001, the Trustees set aside £2,000,000 in an investment fund with the aim of providing a regular source of income each year. Gains and losses on the investments held are credited or charged to the fund each year and the year end balance equals the market value of investments held.
## Service expansion
In the year ended 31 March 2014, the Trustees designated funds of £750,000 to seed fund a number of new services between 2015 and 2018. These funds include £220,000 matched funding received from NHS South Warwickshire CCG for the Good to Great project.
## Warwick Hospice improvements fund
In the year ended 31 March 2020, the Trustees designated funds of £75,000 to fund improvements to the Warwick Hospice. The Trustees designated an additional £425,000 in the year ended 31 March 2021.
## Project funds
In the year ended 31 March 2023 the Trustees designated funds for the following projects in order to ensure the Hospice’s sustainability and to extend the reach of the Hospice’s services to those who currently do not access them:
1. **Opening 4 beds in Warwick IPU** . The IPU in Warwick was reduced to 12 beds due to reducing numbers of referrals throughout the pandemic. Work is ongoing to improve the relationship with referrers in Warwick. Once there is demand over and above 12 beds this funding would allow the recruitment of staff and re-opening of 4 beds. Past trends show that increasing patient numbers also correlates with increased voluntary income through donations.
46
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **22. STATEMENT OF FUNDS (continued)**
2. **Capital expenditure on replacement equipment and to make improvements to the Hospices** . These projects had previously been declined at budget setting due to financial constraints. Now we see that our favourable financial position gives us the opportunity to invest in our sites, improving their sustainability.
3. **“Expanding our services beyond the Hospice walls”** . This funding would allow the Hospice to “pump prime” initiatives, and prove the concept, with the intention that funding / commissioning organisations will agree to fund the future services once proven. Plans for our expansion into the community are ongoing and any application of these funds will be agreed by the usual process by being agreed by the board of trustees.
4. **Digital Strategy and Transformation project.** This project will review the data held within the organisation and what IT solutions could help with the administration and storage of this data. New systems to manage data will be proposed and the costs of the scoping work and new system implementation will come out of this fund.
5. **Innovation fund** . With strong patient and family care and support already emphatically being delivered despite the challenging economic landscape, the emphasis on future development requires a more innovative approach, in order to extend our reach and influence. With this in mind Trustees are seeking to maximise our strong reserves position, so have allocated a designated fund of £1m, for the executive team to explore imaginative new ways to support the local community.
## Restricted funds
Various donations received for other specific purposes laid down by the donors are carried forward as restricted funds until spent.
## **SUMMARY OF FUNDS – CURRENT YEAR**
|Designated funds
General funds
Restricted funds|**Balance at**
**1 April**
**Transfers**
**Gains/**
**Balance at**
**31 March**
**2022**
**Income**
**Expenditure**
**in/out**
**(Losses)**
**2023**
**£**
**£**
**£**
**£**
**£**
**£**
**14,773,102**
**115,288**
**(719,038)**
**160,145**
**(294,593) 14,034,904**
**539,240 11,798,907**
**(11,350,132)**
**(51,525)**
**-**
**936,490**|
|---|---|
||**15,312,342 11,914,195**
**(12,069,170)**
**108,620**
**(294,593) 14,971,394**
**147,825**
**365,615**
**(215,380)**
**(108,620)**
**-**
**189,440**|
||**15,460,167 12,279,810**
**(12,284,550)**
**-**
**(294,593) 15,160,834**|
47
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **22. STATEMENT OF FUNDS (continued)**
## **SUMMARY OF FUNDS – PREVIOUS YEAR**
|_Designated funds_
_General funds_
_Restricted funds_|_Balance at_
_1 April_
_Transfers_
_Gains/_
_Balance at_
_31 March_
_2021_
_Income_
_Expenditure_
_in/out_
_(Losses)_
_2022_
_£_
_£_
_£_
_£_
_£_
_£_
_14,034,594_
_92,899_
_(576,279)_
_1,058,468_
_163,420 14,773,102_
_630,154 11,040,727_
_(10,167,981)_
_(963,660)_
_-_
_539,240_
_14,664,748 11,133,626_
_(10,744,260)_
_94,808_
_163,420 15,312,342_
_192,037_
_473,350_
_(422,754)_
_(94,808)_
_-_
_147,825_
_14,856,785 11,606,976_
_(11,167,014)_
_-_
_163,420 15,460,167_|
|---|---|
||_14,856,785 11,606,976_
_(11,167,014)_
_-_|
## **23. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS – CURENT YEAR**
|Intangible fixed assets
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year|**Unrestricted**
**funds**
**2023**
**Restricted**
**funds**
**2023**
**£**
**£**
**75,427**
**-**
**7,137,851**
**-**
**4,586,399**
**-**
**4,612,841**
**189,440**
**(1,441,124)**
**-**
**14,971,394**
**189,440 **|**Total**
**funds**
**2023**
**£**
**75,427**
**7,137,851**
**4,586,399**
**4,802,281**
**(1,441,124)**|
|---|---|---|
|||**15,160,834**|
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS – PRIOR YEAR**
|_Intangible fixed assets_
_Tangible fixed assets_
_Fixed asset investments_
_Current assets_
_Creditors due within one year_|_Unrestricted_
_funds_
_2022_
_Restricted_
_funds_
_2022_
_£_
_£_
_76,073_
_-_
_7,268,943_
_-_
_4,773,085_
_-_
_5,311,494_
_147,825_
_(2,117,253)_
_-_
_15,312,342_
_147,825 _|_Total_
_funds_
_2022_
_£_
_76,073_
_7,268,943_
_4,773,085_
_5,459,319_
_(2,117,253)_|
|---|---|---|
|||_15,460,167_|
48
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **24. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|Net income/(expenditure) for the year (as per Statement of
Financial Activities)
Adjustment for:
Depreciation and amortisation charges
Losses/(gains)on investments
Dividends and interest from investments
Increase in stocks
Decrease in debtors
(Decrease)/increase in creditors
Loss on disposal of tangible fixed
assets
**Net cash inflow from operating activities**
**25.**
**ANALYSIS OF CASH AND CASH EQUIVALENTS**
Cash in hand
**Total**
**26.**
**PENSION COMMITMENTS**||**Group**
**2023**
_2022_
**£**
_£_
**(299,333)**
_603,382_
**345,982**
_498,280_
**294,593**
_(163,420)_
**(130,832)**
_(93,321)_
**(9,117)**
_(18,350)_
**810,861**
_178,458_
**(676,128)**
**1,384**
_302,328_
_-_|
|---|---|---|
|||**337,410**
_1,307,357_|
|||**Group**
**2023**
_2022_
**£**
_£_
**4,183,810**
_4,039,104_
**4,183,810**
_4,039,104_|
||||
||||
Staff may opt to join a defined contribution pension scheme, the assets of which are held separately from those of the charity in independently administered funds. The employer's contribution to this scheme is between 2% and 10% (2021: 2% and 10%) of pensionable pay.
Staff previously employed by the National Health Service and who were members of the NHS Superannuation Scheme continue to be members of that scheme. The NHS scheme is a defined benefit pension scheme. However, the scheme is a multiple employer scheme and the group is unable to identify its share of the underlying assets and liabilities. The scheme is therefore accounted for as a defined contribution scheme. Contributions are charged to the SOFA so as to spread the cost of pensions over employees' working lives with the charity.
Details of the benefits payable under these provisions can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/nhs-pensions
The employer's contribution to the scheme is 14.38% (2022: 14.38%) of pensionable pay.
The pension cost charges, representing employer's contributions to both schemes, amounted to £519,076 (2022: £455,135). Contributions totalling £81,476 (2022: £65,907) were payable at the year end and are included in other creditors.
49
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **26. PENSION COMMITMENTS (continued)**
Future contributions are expected to be at a similar level.
No trustee qualified for benefits under either of these schemes.
## **27. OPERATING LEASE COMMITMENTS**
At 31 March 2023 the total of the groups future minimum lease payments under non-cancellable operating leases was:
|**Group**
**Amounts payable**
Within 1 year
Between 1 and 5 years
After more than 5 years
**Total**|**2023**
_2022_
**£**
_£_
**325,123**
_303,992_
**604,041**
_442,882_
**83,918**
_146,656_|
|---|---|
||**1,013,082**
_893,530_|
At 31 March 2023 the Charity had annual commitments under non-cancellable operating leases as follows:
|**Charity**
**Amounts payable**
Within 1 year
Between 1 and 5 years
After more than 5 years
**Total**|**2023**
_2022_
**£**
_£_
**260,009**
_237,526_
**527,443**
_386,842_
**83,918**
_146,656_|
|---|---|
||**871,370**
_771,024_|
## **28. RELATED PARTY TRANSACTIONS**
There have been no other related party transactions that require disclosure other than transactions with the subsidiary company Myton Hospice (Promotions) Limited as set out below:
||**2023**|_2022_|
|---|---|---|
||**£**|_£_|
|Management fees|**111,081**|_93,162_|
|Payroll costs recharged|**1,294,595**|_1,118,612_|
|Income from donated goods under the retail Gift Aid|**1,008,441**|_835,105_|
|scheme|||
|Gift aid transferred to the Charity|**1,234,646**|_1,145,718_|
Management fees were calculated as a proportion of the senior leadership teams salaries, and overheads of the management company.
Payroll costs relate to the salaries of the employees who are paid by Myton Hospice, yet work within one of Myton Hospice Promotions Limited services.
Income from donated goods under the retail Gift Aid scheme are sales which were processed by Myton Hospice (Promotions) Limited on behalf of the Charity and are included under retail income.
50
**THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **28. RELATED PARTY TRANSACTIONS (continued)**
Gift aid relates to gift aid recovered by Myton Hospice (Promotions) Limited on behalf of the Charity.
The balance outstanding at the year end owed from Myton Hospice (Promotions) Limited was £113,525 (2022: £655,869). The balance outstanding at the year end owed to Myton Hospice (Promotions) Limited was £Nil (2022: £Nil).
The balance outstanding at the year end owed from Myton Hamlet Hospice Development Limited was £2,307 (2022: £1,707).
The key management personnel of the charity comprise the CEO and Directors of Income Generation and Supporter Development, Finance and Commercial Development, Nursing Care and Service Development, Corporate Resources, People Services and the Medical Director. The total employee benefits of the key management personnel of the charity were £594,267 (2022: £579,142).
## **29. FINANCIAL INSTRUMENTS**
|||**Group**||**Charity**|
|---|---|---|---|---|
||**2023**|_2022_|**2023**|_2022_|
|**Financial assets**|**£**|_£_|**£**|_£_|
|Financial assets measured at fair value|||||
|through income and expenditure|**4,518,899**|_4,705,585_|**4,564,253**|_4,750,939_|
|Financial assets that are debt|||||
|instruments measured at amortised|||||
|cost|**4,337,431**|_5,000,005_|**3,993,649**|_4,130,210_|
|**Financial liabilities**|||||
|Financial liabilities|||||
|measured at amortised|||||
|cost|**985,874**|_1,142,288_|**861,134**|_1,044,904_|
Financial assets measured at fair value through income and expenditure comprises investments in UK listed securities. Financial assets measured at amortised cost comprise cash at bank, trade debtors and accrued income. Financial liabilities measured at amortised cost comprise trade creditors, accruals and other creditors.
The group’s income, expense, gains and losses in respect of financial instruments are summarised below:
|elow:|||||
|---|---|---|---|---|
|||**Group**||**Charity**|
||**2023**|_2022_|**2023**|_2022_|
||**£**|_£_|**£**|_£_|
|Total investment income for financial|||||
|assets measured at fair value through|||||
|income and expenditure|**115,288**|_92,899_|**116,589**|_92,899_|
|Net gains/(losses) on financial assets|||||
|measured at fair value through income|||||
|and expenditure|**(294,593)**|_163,420_|**(294,593)**|_163,420_|
|Total investment income for financial|||||
|assets measured at amortised cost|**15,544**|_422_|**14,243**|_422_|
51
## **THE MYTON HOSPICES (A company limited by guarantee)**
## **NOTES TO THE FINANCAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **30. CAPITAL COMMITMENTS**
At 31 March 2023 the Charity had capital commitments for leasehold improvements of £90,500 (2022: £Nil).
52