## **Annual Report & Accounts** 2020-2021
Hospice of St Mary of Furness
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## **WHO WE ARE**
St Mary’s Hospice is open to anyone living in South Cumbria, aged over 18, who is referred with a life- shortening illness.
The hospice is open to people with any diagnosis, religion or race. All services are free at the point of use.
The objects of the charity are the relief of adults suffering from advanced, progressive incurable illness or any other physical or mental infirmity disability or disease as agreed, through:
- The expert care and support of adults with palliative and end of life needs;
- The provision of services to promote health and wellbeing for patients and carers;
- The care and support of family and friends who have been bereaved;
- Promoting the advancement of high-quality palliative and end of life care throughout the community.
## **MISSION**
We give expert care and support with kindness so local people affected by advancing illness have comfort, dignity and choice
## **VALUES**
Caring - doing everything with kindness and respect
Aspiring - always learning to do even better, to make even more of a difference
Professional - taking pride in what we do; working to the highest standards
Sustainable - playing an active role in creating a sustainable future.
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## **GRAHAM JOWETT**
## Chair of Trustees
The pandemic forced us to bring in different ways of working. The introduction of innovative practices including telemedicine, as well as embracing the use of social media, enabled us to continue to deliver services in very challenging and disrupted times.
Our Chief Executive Officer, Val Stangoe and her senior management team, supported by the board of trustees, have provided exemplary management throughout the pandemic, keeping our patients and staff safe, and ensuring that we can emerge from a difficult period in a position to grow.
The board has continued to operate, mostly remotely,to ensure effective governance and leadership. I would like to thank the Chairs of our subcommittees of Governance, Retail and Hospitality, Human Resources, Fundraising and Finance and Investment for providing robust assurance to the board that we are delivering our strategic aims and objectives. We have reviewed our governance arrangements with the establishment of a new Communications Committee of the Board, maintaining board development, effective risk management and robust financial controls. Clinical governance has been reviewed and a new clinical assurance framework introduced.
Stakeholders are essential to our continued operation and development of the hospice and I would like to pay tribute to your continued loyalty and to thank the many supporters who have raised funds, to donors and our corporate sponsors. With your continued support we have maintained sufficient reserves to deliver our charitable objectives and to ensure continued financial stability.
I would like to take this opportunity to thank Lucy Cavendish, whose term of office as a trustee has come to an end, for her excellent contribution to the board over the last nine years. Lucy has been a great friend to St Mary’s and I am delighted that she has agreed to continue supporting us as a fundraising ambassador. I’m also please to welcome back Andy James, who returns to the board after a short break in service.
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Finally, I would like to thank Val, our senior management team, my fellow board members and most of all our staff and volunteers for their dedication, commitment and determination to ensure our hospice not only survives, but thrives, providing a first class service to our local community.
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## **VAL STANGOE**
## Chief Executive Officer
Despite the challenges 2020-21, good things happened too.
March 2020 saw us initiating a new ‘virtual’ medical system where instead of having a senior doctor on site our on-site medical team accessed that senior support from palliative consultants working in other parts of the UK. Although this system is used across the country for out-of-hours support we became one of the first hospices in the country to use it for day time cover too. During 2020 that system has bedded in really well and we’ve seen strong working relationships form between team members who’ve never met face to face. It’s funny to think that when we first set this system up it looked very unusual, but because of pandemic virtual working it’s become more of a norm showing that our system fits effectively into a modern world.
Our supporters used this time to find new ways to do things too. Whether that was through creating and taking part in virtual events; ordering lunches and afternoon teas galore during ‘Eat Out to Help Out’ or rushing to our shops and warehouse to spend money on that special preloved item, people have done so many things that have impacted positively on us.
When the pandemic began we readied ourselves for a very difficult financial year. However, between community support and some unexpected Government funds we actually finished the year in surplus. This brilliant news allows us to bring forward plans to create a new service for people living with dementia and their families.
Yet we can’t deny some moments have been difficult too.
While every hospice team had difficulties to deal with some have been hit particularly hard. Our clinical team took the brunt of the discomfort of working in full PPE for 18 months now which is hot and tiring. We won’t be stopping using PPE for quite a while yet and we will keep taking measures to keep everyone safe. I’m so glad of their patience while this need remains.
##
With furlough and working from home becoming more common the responsibility of being on site and looking after the building fell on just a few people and I’m grateful for the effort they put in over that time. Every year is what you make it and every year has difficult times and good times. The hospice is a great place to work in both of those times and every single team member plays a part in that.
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## **THE MANAGEMENT TEAM**
The Senior Management Team at St Mary's is made up as follows (left to right)
Val Stangoe, Chief Executive Officer
Joanne Blake, Head of Clinical Services and Education
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Karl Connor, Head of Communications and Community Engagement
Helen Carlson, Head of Fundraising,
Caroline Welch, Head of Retail and Hospitality
Suzi Lake, Head of Finance & Performance Analytics
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## **CLINICAL SERVICES**
Although we operate from the Hospice building, we visit more patients in their own home than ever come to the Hospice itself.
## **84%**
The bed occupancy rates for our In-Patient Unit demonstrate that we have the right number of beds (6, with the ability to flex up to 7) to meet local need
Our Hospice at Home team supported more than 300 individuals and families at the end of life, where the goal was to keep that person in their own bed
## **300**
There were 616 referrals to our Family and Bereavement Support team in 2020/21 - the highest ever and a 17% increase on the previous 12 months
## **616**
## **FUNDRAISING**
We're so lucky to have the support of our community, but each year we need to raise more money so we can offer more services to more local people.
**£87.22**
**3194**
The average donation made to St Mary's Hospice from individuals and companies is £87.22
There were 3,194 individual donors during 2020/21, and we are grateful for every single one!
8 out of every 100 residents in Ulverston have donated directly to St Mary's in the past four years. For Barrow and Grange, that number is 4 out of every 100 people.
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## **RETAIL AND HOSPITALITY**
Despite our shops and cafe being closed for six months of the year, we still did remarkably well...
**214 £20k**
We sold 214 afternoon teas during the Government's Eat Out To Help Out campaign
We collected over £20k via 'giftaid' on purchases and donations. Filling in that little box makes a huge difference!
**1147**
We sold 1147 Christmas card packs featuring a Dickensian Ulverston scene - and this year's are on sale now
## **OTHER HEADLINE NUMBERS**
**£500K**
**6971 35%**
Our army of volunteers saved us over £500,000 in staffing costs; despite being locked down for most of the year
Just under seven thousand people play our weekly lottery - with someone winning £1,000 each week.
Because of extra grants and funding available due to Covid, 35% of our funding came from the Government. Normally this is just 19%. We expect it to fall back to this level and are planning on that basis
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## Summary
We have had an excellent financial year, thanks to the continued support of the community, putting us in a position to achieve our core goal of caring for more people, earlier.
- Our total income of £4.3 million was 25%, higher than 2019/20; the increase was thanks to funding received for the capacity provided to the NHS during the Covid pandemic coupled with a strong performance on trusts and grants fundraising
- 7We spent 8% more on charitable activities than last year, with the biggest increase in need being for bereavement support
- Our retail and hospitality business and our fundraising events were hit hard by restrictions due to coronavirus
## Income
Our total income was £4.3 million in 2020/21 and the chart below shows the key elements of this income, with the previous years' for comparison.
Total Income 2020/21
Total Income 2019/20
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## Income (continued)
Income from our charity shops, our cafe, and fundraising events all fell in value because our shops and cafe were forced to close during each of the three lockdowns in the financial year, and planned fundraising events had to be cancelled. This meant we lost 54% of our expected income.
However, lottery income grew and fundraising managed to stay level with the previous year due to ingenious digital fundraising events.
## Expenditure
Our total expenditure in the year increased from the previous year by 3%. We spent £200k more on our charitable activity.
This increase is because we re-opened our inpatient unit in April 2020. We also increased our expenditure on family and bereavement support services during the year to help meet the increased need within our community.
The money we spend on raising funds fell by £100k, due to us being unable to do all of the things we had planned during the year. Shop costs fell less than other costs as retail costs are mainly fixed.
## Investments
Our trustees invest our long term reserves to get the best growth they can while remaining within an acceptable level of risk. Investments are made for a minimum of five years.
Our trustees wish to invest ethically and responsibly. We only use fund managers signed up to the United Nations Principles of Responsible Investment. We also would not invest in companies or funds that generate more than 10% of their revenues from tobacco.
We use Sanlam Investment Management to manage our investment portfolio. Performance is reviewed on a quarterly basis.
## Free Reserves
##
Free reserves are funds the hospice has in the bank which it was given to use as needed. Trustees have agreed to always to keep at least six months of running costs in the bank along with any possible losses in case of difficulties. At the end of 2020-21 this meant the sum to be kept was £2 million.
On 31 March 2021 the hospice had £4 million in cash and investments. Trustees will therefore put £2 million pounds aside to be used to increase services so we can meet our goal of reaching more people across our community.
Trustee's
report
St Mary's
Hospice
2020-2021
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## **HOW WE MAKE A DIFFERENCE**
St Mary’s Hospice is open to anyone living in South Cumbria, aged over 18, who is referred with a life- shortening illness. The hospice is open to people with any diagnosis, religion or race. All services are free at the point of use. Our principle sources of funding are from fundraising within our local community along with core funding from our local CCG
St Mary’s Hospice is registered with CQC to carry out the regulated activity: Treatment of disease, disorder or injury. Our conditions on registration being that we only:
- treat people over 18 years old.
- accommodate a maximum of eight in-patients.
The Care Quality Commission last inspected St Mary’s Hospice in June 2016 when it declared all aspects to be GOOD and in compliance with CQC regulation and guidance. We then had a remote review from CQC during 2020 to ensure that with regard to COVID we were working within national guidelines to keep patients, families, staff and volunteers safe. CQC declared themselves satisfied by what they found. Since 2016 the process by which CQC inspects premises has changed with a new structure publicised from 2021. We await inspection under that new structure.
The hospice is unable to deliver improved palliative and end of life care working alone. The benefits of the partnership between ourselves, St John’s Hospice Lancaster and other local health and social care providers of palliative care in Morecambe Bay can be seen in the graphs below. These graphs show that, compared to other areas within the Lancaster and South Cumbria Integrated Care System, Morecambe Bay has a lower number of deaths in hospital and a higher number of deaths at home. These are seen as indicators of a strong system as public opinion has told us most people prefer to die in their own place of residence.
## **DEATHS IN HOSPITAL**
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## **DEATHS AT HOME**
## **HOSPICE OBJECTIVES**
Overall the objective of St Mary’s Hospice is to GROW, as outlined below, over the next 5 years:
- To increase the number of individuals and families supported by our services at the same high quality of care. We will do this by working in partnership with other organisations and offering group rather than individual activities where possible.
- To increase the number of staff in other organisations with whom we share our specialist skills and knowledge. This to empower them to deliver hospice level support to those in their care.
- To work in partnership with more organisations so that together we can ensure more people have access to high quality palliative and end of life care.
- To become more sustainable so that there will always be a hospice in this community to care for local people. To do this we need to find new ways of raising funds each year and to encourage more people to volunteer and support our work.
## **TRUSTEE'S REPORT**
Clinical Services offered
- Our Ulverston building offers six inpatient beds with the capacity to stretch to seven beds when required.
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- A Hospice at Home service provides daytime nursing care and overnight support in patients’ own homes across Furness and South Lakes
- A Living Well Service helps people with advancing illness maintain independence and wellbeing through therapeutic activities such as exercise, creative work, education on symptom management, emotional support and a Day Hospice.
- The Bereavement and Family Support Service offers face-to-face and remote support from volunteers as well as online peer support. This service is available whether or not the person who died used hospice services. We are able to refer families to specialist children’s services if needed.
- The St Mary’s Living Well Centre in Barrow offers a range of activities and services to improve the quality of life for people with advancing illness and their families. Services are provided in collaboration with partners from third sector, NHS and local authority.
St Mary’s Hospice also offers:
- A link to ‘Drop-in’ peer support groups in Barrow, Ulverston and Grange-over-Sands;
- Supportive services for carers;
- Placements for medical, nursing and social work students on rotation; Professional palliative care education for the wider health and social care workforce.
The front pages of this report carry more detail on the numbers of people supported in the last 12 months.
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## **TRUSTEE'S REPORT**
## Critical issues in 2020-21
## Meeting the gap in Palliative Consultant cover
The most critical issue of 2019-20 was the loss of our senior doctor in September 2019 which led to a six months closure of our beds. When international recruitment proved unsuccessful we had to forge a new path to be able to reopen our beds in April 2020. In 2019 we had already started to contract with a company Supportive Care UK (SCUK) for out of hours access to Palliative Consultants already working their substantive contract in NHS roles. Our new need came as the company was just expanding making us one of the first hospices nationally to move to a model with completely remote Palliative Consultant support.
Two consultants provide our day cover and meet with our multidisciplinary team online three times a week to discuss patients and plan their care. Once a fortnight one consultant works with the medical team to review and learn from complex cases. Each member of the medical team receives Clinical Supervision four times a year from a consultant.
As we still contract with SCUK for out of hours cover the hospice nowadays has access to a consultant seven days a week.
Our Trustees and senior team find this model more robust than previously as does our local Responsible Officer who has been an enormous support to us in establishing this model.
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## **TRUSTEE'S REPORT**
## Critical issues in 2020-21
## COVID-19 - Clinical Impacts
From the moment of the national escalation of the response to Covid 19, the hospice, like all health organisations, had to adapt its clinical services to protect patients and staff from its rapid spread by:
- Closure of all face to face group activities to protect both our patients, staff and volunteers
- Standing down volunteers across all services excepting Bereavement Service volunteers who moved instantly to remote and online delivery
- Our Living Well Team set up a telephone hub in Barrow to support those who had quickly started to self-isolate with no local support network. This line offered emotional support and coordinated food and medicine deliveries for three weeks until the local Barrow Borough Council was in a position to pick this work up. The hospice clinical team then returned to supporting our clinical services.
- The hospice and local health services agreed we could best support the NHS by providing:
- A smaller number of beds initially so more staff could be in patients’ own homes. This number grew from four to six beds with the capacity to stretch to seven if required.
- Continuation of the larger Hospice at Home team which had been available during the bed suspension period.
- Overnight sits continued as normal to give families the chance to rest.
- Our two Advanced Nurse Practitioners (ANP) formed a rota with the single ANP in post at Furness General Hospital to allow hospital teams access to specialist advice seven days a week.
- The search for accessible PPE to keep teams working safely became a continual pressure. Our Head of Retail took on this task and was supported by local businesses and individuals. By June a steady supply of PPE was sourced through national lines greatly improving our situation.
Stringent infection control measures and a lot of good luck meant very few staff became ill with COVID across this year allowed our services to deliver care throughout. During that year we had no staff to staff transmission within the hospice.
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## **TRUSTEE'S REPORT**
## Critical issues in 2020-21
## Covid 19 - financial challenges
Two tranches of Government funding paid for the clinical services usually supported by fundraising. This funding, alongside the continued support of the community, government furlough payments and local authority grants for retail, kept the hospice afloat and allowed us to end the year in surplus. These tranches were from March to June 2020 and then again from September to March 2021.
## Celebrating the good
Despite the difficult aspects of the pandemic the hospice was able to celebrate:
- The flexibility of the staff team who worked from home, undertook new roles in the hospice and went in and out of furlough promptly and cheerfully as required. Our staff showed a determination to make the best of every situation. Furloughed retail staff even undertook online training in a range of subjects to get best value from their downtime.
- Volunteers came back whenever our shops and café needed them to re-open and helped us work in safe ways.
- We are grateful to the many shops and café customers for their continued and unprecedented support.
- Donations flooded into the hospice from businesses and individuals in the form of PPE, wellbeing gifts such as chocolates or handcream, messages of goodwill and financial donations. We could not have felt that we mattered more and this was an enormous support in our most difficult days.
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## **TRUSTEE'S REPORT**
## Structure, governance and management
The Hospice of St Mary of Furness, known locally as St Mary’s Hospice, is a company limited by guarantee as well as a charity and exists for the charitable purpose of the relief of those in need by reason of ill-health.
Trustees are responsible for hospice governance and work alongside the Senior Management Team responsible for the day-to-day running of the hospice. Together they write a five year Strategic Plan and use this to shape operational priorities.
The Trustees have complied with the duty in the Charities Act 2011 with due regard to the public benefit guidance published by the Charities Commission.
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## **TRUSTEE'S REPORT**
## The Board of Trustees
The Board of Trustees has six to ten trustees recruited to reflect the needs of the Board and our local community. It meets every two months with formal Board Committees meeting between times to focus on specific areas of business such as Governance, HR or Finance. New Trustees link to a ‘buddy’, a more experienced Trustee, to learn about the hospice. They also meet with the Chair and Vice-Chair and have access to a webpage of useful information.
## The Senior Management Team
The SMT is made up of: The CEO; Head of Finance & Performance Analytics; Head of Clinical Care and Education; Head of Fundraising; Head of Retail and Hospitality; Head of Communications and Engagement. Each of these senior managers is responsible for leading a team of staff in delivery of the hospice goals. Pay for the Senior Management Team is set by Trustees in the context of a job scoring matrix and market salary rates.
## Risk management
A major aspect of the Trustee role is to be aware of the major risks facing the charity and to put in place strategies to manage these. The most serious of our current risks are outlined below:
Clinical risks
- The main continuing clinical risk for the existence of the hospice is the difficulty in recruitment and retention of medical staff who provide daily medical cover on the in-patient unit. This is due to a national shortage of medical staff particularly those with senior experience in Palliative Care.
- There is also an increasing risk of unavailability of nursing staff linked to a national shortage.
## Steps to mitigate these risks are:
- Linking with Supportive Care UK, a company providing access to experienced Palliative Consultant level cover both for day time and out of hours support;
- Training a third Advanced Nurse Practitioner to strengthen our medical team;
- Ensuring a robust development programme for nursing staff to make posts appealing and support skills development.
## **TRUSTEE'S REPORT**
## Financial risks
The main financial risks for the Hospice are:
- Changes to NHS commissioning processes during NHS reorganization Reduction in available NHS funding
## 19
- Failure to increase the current level of NHS funding despite increasing costs of service delivery
- A heavy reliance on charitable funding in a time of financial instability in many households.
Steps to mitigate these are:
- Working closely with commissioners to ensure our services fulfil need identified locally
- Using a broad range of income generation methods including continually updating our businesses.
## Fundraising
As St Mary’s relies on the goodwill of our community, it is important to us that noone ever feels pressured to donate or engage. Approaches to our community are infrequent and are always guided by our Information Governance group which ensures use of contact data complies with GDPR and with our own standards around care of vulnerable people. Fundraising and canvassing activity is managed to ensure engagement is consensual, that our teams are appropriately aware of the need to protect vulnerable supporters and that the organisation would rather err on the side of caution to protect such vulnerable people from feeling or being exploited.
## Coronavirus risks continue
The risk linked to Coronavirus continue on. Those people the hospice supports generally have vulnerability to the virus due to other conditions. It is therefore likely that we will continue to use PPE for some time to come and to actively manage face-to-face interactions to keep everyone safe. However having seen the negative effects of social isolation we will work to ensure both online and face-toface options are available. We must recognise that digital access excludes those who do not have digital skills, lack funds to invest in a digital response or live in areas where broadband is poor.
Coronavirus also poses financial risks by reducing our ability to open our shops and café or to have face to face contact for fundraising.
## Demographic change
A newly emerging risk on the horizon is the change to national demographics over the next 20 years. In Morecambe Bay this indicates a growth over that period of 47,000 people of whom 19,000 will be over 85.
## **TRUSTEE'S REPORT**
## Reserves
The trustees review the level of free reserves on an annual basis.
Calculation of the required level of free reserves takes into account:
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- The key financial risks faced by the organisation
- Our ability to diversify our income streams
- Our current cost structure
- Known expenditure increases faced due to compliance with legal changes, such as changes to the national minimum wage and NHS pension funding
- Investment funding required to enable strategic development Increased economic uncertainty
The Trustees have set the minimum level of free reserves to be six months of budgeted expenditure, plus any future losses anticipated in our three year financial plan. The free reserves target for the end of 2020/21 was identified as £2 million.
Free reserves at 31st March 2021 were £4 million. Trustees have identified £2 million to be set aside in a strategic development fund to invest in increasing our service provision in order to fulfil our objective of reaching more people in our community.
This will enable us to grow services whilst recognising that the three year plan is currently showing a deficit budget, and ensure we have the ability to increase our income over this period in order to ensure sustainability of these services in the future.
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## **REFERENCE AND**
## **ADMINISTRATIVE**
## **DETAILS**
Registered charity name Hospice of St. Mary of Furness Charity registration number 517738 Company registration number 2016831 Principal office & Registered office Ford Park Crescent
Ulverston Cumbria United Kingdom LA12 7JP
The trustees who served the charity during the period were as follows:
Graham Jowett Andrew Wren Graham Servante Lucy Cavendish Dudley Clark Richard Bird Denise Hardy Dr Andrew Luksza Esther Kirby Alyson Dickson
## The Directors
During the period were as above with the inclusion of Val Stangoe, CEO
## Secretary
Suzi Lake
## Principal staff members
Val Stangoe – Hospice Chief Executive
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## **REFERENCE AND ADMINISTRATIVE**
## **DETAILS**
## Bankers
Furness Building Society 51-55 Duke Street Barrow-in-Furness Cumbria LA14 1RT
NatWest Bank Plc P.O. Box 81 Elephant Yard Kendal Cumbria LA9 4GS
Nationwide Building Society Kings Park Road Moulton Park Northampton NN3 6NW
## Solicitors
Progression Solicitors 11 Queen Street Ulverston Cumbria LA12 7AF
## Auditors
MHA Moore and Smalley Priory Close St Mary’s Gate Lancaster Lancashire LA1 1XB
## Investment Managers
Sanlam Private Investments 55 Main Street Kirkby Lonsdale Cumbria LA6 2AH
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## **SERVICE DATA**
Data on the use of our services in 2020-21 is shown in relation to previous years.
Overall numbers asking for support through our bed based and home based services dropped due to Covid. However during this period the hospice had times of struggling with staff availability due to the need to self-isolate. The combination of lower need linked to higher staff absence did allow us to keep services open at all times.
## In-Patient Unit
Before September 2019 the hospice had 9 beds running at a bed occupancy of less than 75%. As COVID hit our new medical team arrived and we were able to reopen 5 beds in recognition that we needed staff flexibility to allow us to support people at home and to manage potential staff sickness. During 2020 open beds increased to six with an ability to flex to seven if required. This has given us a bed occupancy of above 90% which indicates this number of beds suits the needs of our population well. We have had no periods when we have had to refuse admissions because of lower bed numbers although occasionally admission may be delayed by a day or two.
## Hospice @ Home Activities
During the period of bed closure in 2019 all of our clinical team increased their skills in community nursing which gave us the flexibility to support more people at home. During COVID Hospice at Home staff started to offer more information and advice by telephone and always checked if a family wanted staff to enter their home before visiting. We continued to have 100% of those who died in the care of the service supported to stay at home without admission to hospital.
## Day Hospice and Group Therapies
Day Hospice and Group therapies were impacted by COVID as no face to face support was possible. Group sessions ran on Zoom until December when the loss of a core staff member meant these reduced greatly.
## Family Support Services
Our Family Bereavement and Support Service supports people living with loss whether they have used hospice services or not. This service was increasingly busy during 2020 and our team of trained bereavement volunteers continued to work by Zoom throughout. Face to face meetings were allowed only where Zoom was not practicable. This service initiated weekly group Zoom meetings and continued to run the online closed Facebook group.
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## Principal Risks and Uncertainties: Trustees' responsibilities statement
The trustees (who are also the directors of Hospice of St. Mary of Furness for the purposes of company law) are responsible for preparing the Trustees Annual Report and the consolidated financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the directors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
Under company law the directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in operation.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as each of the directors of the charitable company at the date of approval of this report is aware there is no relevant audit information (information needed by the company’s auditors in connection with preparing the audit/report) of which the company’s auditors are unaware. Each director has taken all of the steps that he/she should have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
## Auditor
MHA Moore and Smalley have indicated their willingness to be reappointed as statutory auditors.
Approval was given by the trustees for this report (which incorporates the strategic report, which was approved by the trustees in their capacity as directors) and is signed on the board’s behalf by:
G Jowett Trustee
28/09/2021
Annual
Accounts
St Mary's
Hospice
2020-2021
-,IIB21J£Ii'
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## **ANNUAL ACCOUNTS**
Over the next few pages we are providing the formal accounts, the publication of which is a legal requirement.
By definition, they're not as accessible or interesting as the 'annual report' section of this document - but they are important.
You can find more information about our activities on our website, www.stmaryshospice.org.uk and it's very much worth following us on social media to get regular updates about the work we do.
Company registration No. 2016831 (England & Wales) Charity No. 517738
Hospice of St. Mary of Furness
For The Year Ended 31 March 2020
Formal Trustees’ Report and Consolidated Financial Statements
CONTENTS AS REQUIRED BY STATUTE Pages 27-57
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF HOSPICE OF ST. MARY OF FURNESS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **Opinion**
We have audited the financial statements of Hospice of St. Mary of Furness (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2021 which comprise of the Consolidated Statement of Financial Activities, Charity Statement of Financial Activities, Consolidated Balance Sheet, Charity Balance Sheet, consolidated and charity Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees 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 the charitable company’s members as a body, and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2021, 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 and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
-27-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF HOSPICE OF ST. MARY OF FURNESS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **Other information**
The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report has 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 group and parent 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 and the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
-28-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF HOSPICE OF ST. MARY OF FURNESS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Enquiries with the board about any known or suspected instances of non-compliance with laws and regulations, including fraud;
- Challenging assumptions and judgements made by the board in their significant accounting estimates, in particular in relation to provisions and future performance of the charity in light of the impact of Covid-19;
- An evaluation of the risk of management override of controls and subsequent testing, including through testing journal entries and other adjustments for appropriateness; and
- An evaluation of the charity’s internal control environment.
Because of the industry in which the charity operates, we identified the following areas as those most likely to have a material impact on the financial statements: Compliance with the Care Quality Commission requirements, Health and Safety, compliance with Gambling Commission rules, in particular holding the relevant lottery licence; employment law, and compliance with the UK Charities Act.
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.
-29-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF HOSPICE OF ST. MARY OF FURNESS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidancefor-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx.
This description forms part of our auditor’s report.
## **Jenny McCabe**
## **Senior Statutory Auditor**
For and on behalf of MHA Moore and Smalley Chartered Accountants and Statutory Auditor
Priory Close St Mary’s Gate Lancaster LA1 1XB
04/10/2021
……………………….
-30-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|**Income from:**
Donations and legacies
**3**
Charitable activities
**4**
Other trading activities
**5**
Investments
**6**
Other
**7**
**Total**
**Expenditure on:**
Charitable activities
**8**
Raising funds
**9**
**Total**
**Net (expenditure)/income before**
**other gains/(losses)**
Net gain/(loss) on investments
**Net (expenditure)/income before**
**transfers**
Transfer between funds
**11**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Restricted**
**Total funds**
Total funds
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
**1,516,638**
**261,711**
**1,778,349**
1,394,177
**746,984**
**778,100**
**1,525,084**
660,224
**887,981**
**-**
**887,981**
1,258,119
**29,596**
**-**
**29,596**
46,547
**104,247**
**-**
**104,247**
107,127|
|---|---|
||**3,285,446**
**1,039,811**
**4,325,257**
3,466,194|
||**1,657,565**
**934,334**
**2,591,899**
2,397,281
**806,916**
**-**
**806,916**
915,759|
||**2,464,481**
**934,334**
**3,398,815**
3,313,040|
||**820,965**
**105,477**
**926,442**
153,154
**129,936**
**-**
**129,936**
(83,594)|
||**950,901**
**105,477**
**1,056,378**
69,560
**60,100**
**(60,100)**
**-**
-|
||**1,011,001**
**45,377**
**1,056,378**
69,560
**5,193,605**
**28,678**
**5,222,283**
5,152,723|
||**6,204,606**
**74,055**
**6,278,661**
5,222,283|
|||
The Statement of Financial Activities includes all recognised gains and losses in the year.
All of the above amounts relate to continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The notes on pages 25 to 46 form part of these financial statements.
-31-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **CHARITY STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|**Income from:**
Donations and legacies
**3**
Charitable activities
**4**
Other trading activities
**5**
Investments
**6**
Other
**7**
**Total**
**Expenditure on:**
Charitable activities
**8**
Raising funds
**9**
**Total**
**Net (expenditure)/income before**
**other gains/(losses)**
Net gain/(loss) on investments
**Net (expenditure)/income before**
**transfers**
Transfer between funds
**11**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Restricted**
**Total funds**
Total funds
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
**1,492,166**
**261,711**
**1,753,877**
1,394,177
**746,984**
**778,100**
**1,525,084**
660,224
**817,244**
**-**
**817,244**
1,094,049
**29,596**
**-**
**29,596**
46,547
**104,204**
**-**
**104,204**
114,627|
|---|---|
||**3,190,194**
**1,039,811**
**4,230,005**
3,309,624|
||**1,657,565**
**934,334**
**2,591,899**
2,397,281
**674,268**
**-**
**674,268**
766,668|
||**2,331,833**
**934,334**
**3,266,167**
3,163,949|
||**858,361**
**105,477**
**963,838**
145,675
**129,936**
**-**
**129,936**
(83,594)|
||**988,297**
**105,477**
**1,093,774**
62,081
**60,100**
**(60,100)**
**-**
-|
||**1,048,397**
**45,377**
**1,093,774**
62,081
**5,155,801**
**28,678**
**5,184,479**
5,122,398|
||**6,204,198**
**74,055**
**6,278,253**
5,184,479|
|||
The Statement of Financial Activities includes all recognised gains and losses in the year.
All of the above amounts relate to continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The notes on pages 25 to 46 form part of these financial statements.
-32-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **CONSOLIDATED BALANCE SHEET**
## **AS AT 31 MARCH 2021**
|**Fixed assets**
Tangible assets
**13**
Investments
**14**
**Current assets**
Stock
**15**
Debtors
**16**
Cash at bank and in hand
**Creditors:**amounts falling due within
one year
**17**
**Net current assets**
**Total assets less current liabilities**
**Net assets**
**Funds:**
Restricted funds
**19**
Unrestricted funds
**21**
**Total funds**|**£**
**£**
£
£
**2,219,612**
2,252,250
**1,138,035**
986,486
**3,357,647**
3,238,736
**8,896**
9,893
**309,799**
243,246
**2,830,898**
1,958,185
**3,149,593**
2,211,324
**(228,579)**
(227,777)
**2,921,014**
1,983,547
**6,278,661**
5,222,283
**6,278,661**
5,222,283
**74,055**
28,678
**6,204,606**
5,193,605
**6,278,661**
5,222,283
**2021**
2020|
|---|---|
||**8,896**
**309,799**
**2,830,898**|
||**3,149,593**
**(228,579)**|
|||
These accounts were approved by the members of the committee and authorised for issue on the 28/09/2021 ........................ and are signed on their behalf by:
……………………………………
**G Jowett Trustee**
**Company Registration Number:** 2016831
The notes on pages 25 to 46 form part of these financial statements.
-33-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **CHARITY BALANCE SHEET**
## **AS AT 31 MARCH 2021**
|**Fixed assets**
Tangible assets
**13**
Investments
**14**
**Current assets**
Stock
**15**
Debtors
**16**
Cash at bank and in hand
**Creditors:**amounts falling due within
one year
**17**
**Net current assets**
**Total assets less current liabilities**
**Net assets**
**Funds:**
Restricted funds
**19**
Unrestricted funds
**21**
**Total funds**|**£**
**£**
£
£
**2,218,182**
2,251,198
**1,138,038**
986,489
**3,356,220**
3,237,687
**7,787**
8,684
**315,692**
253,209
**2,824,159**
1,904,881
**3,147,638**
2,166,774
**(225,605)**
(219,982)
**2,922,033**
1,946,792
**6,278,253**
5,184,479
**6,278,253**
5,184,479
**74,055**
28,678
**6,204,198**
5,155,801
**6,278,253**
5,184,479
**2021**
2020|
|---|---|
||**7,787**
**315,692**
**2,824,159**|
||**3,147,638**
**(225,605)**|
|||
These accounts were approved by the members of the committee and authorised for issue on the 28/09/2021 ........................ and are signed on their behalf by:
……………………………………
**G Jowett Trustee**
## **Company Registration Number:** 2016831
The notes on pages 25 to 46 form part of these financial statements.
-34-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **CONSOLIDATED AND CHARITY CASH FLOW STATEMENTS**
## **AS AT 31 MARCH 2021**
||**Group**|Group|**Charity**|Charity|
|---|---|---|---|---|
||**2021**|2020|**2021**|2020|
||**Total**|Total|**Total**|Total|
||**£**|£|**£**|£|
|**Cash (spent) / generated in operating**|||||
|**activities**|**946,221**|187,090|**992,111**|186,526|
|**Cashflows from investing activities**|||||
|Investment income|**29,596**|46,547|**29,596**|46,547|
|Purchase of tangible fixed assets (including|||||
|investments)|**(83,292)**|(42,864)|**(82,617)**|(41,788)|
|Disposal of tangible assets (including|||||
|investments)|**3,949**|5,477|**3,949**|5,477|
|**Cash (used in)/provided by investing**|||||
|**activities**|**896,474**|196,250|**943,039**|196,762|
|**(Decrease)/Increase in cash and cash**|||||
|**equivalents in the year**|**896,474**|196,250|**943,039**|196,762|
|Cash and cash equivalents b/fwd|**2,013,220**|1,816,970|**1,959,916**|1,763,154|
|**Cash and cash equivalents c/fwd**|**2,909,694**|2,013,220|**2,902,955**|1,959,916|
|**Reconciliation of net movement in funds to net cashflow from**||**operating activities**|||
|Net movement in funds|**1,056,378**|69,560|**1,093,774**|62,081|
|Investment income received|**(29,596)**|(46,547)|**(29,596)**|(46,547)|
|Depreciation|**113,838**|108,199|**113,541**|108,090|
|(Increase)/Decrease in stock|**997**|233|**897**|309|
|(Increase)/Decrease in debtors|**(66,553)**|(29,160)|**(62,483)**|(23,778)|
|Increase/(Decrease) in creditors|**802**|1,211|**5,623**|2,777|
|(Profit)/ Loss on disposal of fixed assets|**291**|-|**291**|-|
|(Gain)/ Loss on revaluation of investments|**(129,936)**|83,594|**(129,936)**|83,594|
|**Net cash generated in operating activities**|**946,221**|187,090|**992,111**|186,526|
|**Components of cash and cash equivalents**|||||
|Cash at bank and in hand|**2,830,898**|1,958,185|**2,824,159**|1,904,881|
|Cash held at investment brokers|**78,796**|55,035|**78,796**|55,035|
||**2,909,694**|2,013,220|**2,902,955**|1,959,916|
||||||
The notes on pages 25 to 46 form part of these financial statements.
-35-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **1 Accounting policies**
## **Legal form**
Hospice of St. Mary of Furness is a registered charity and a limited company, limited by guarantee, as defined by the Companies Act 2006, incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered office of the charity, the nature of its operations and its principal activities are all detailed in the Trustees’ report of these financial statements.
## **Basis of preparation**
Hospice of St. Mary of Furness meets the definition of a public benefit entity under FRS102. 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), the Charities Act 2011 and the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts are rounded to the nearest £.
The financial statements have been prepared on a going concern basis under the historical cost convention. The particular accounting policies adopted by the trustees are described below. These policies have been consistently applied to all years presented unless otherwise stated.
The consolidated accounts of the group incorporate the accounts Hospice of St. Mary of Furness (“the Charity”) and its wholly owned subsidiary, St Mary’s Orangery Limited. The results of the subsidiary are consolidated on a line by line basis.
## **Preparation of the accounts on a going concern basis**
Prior to the approval of these accounts, there has been a reduction in the measures taken within society to combat the Covid-19 pandemic, however due to the nature of the Hospice’s activities these measures are reducing more slowly. The Trustees have provided further details of this impact in the Trustees’ Report and have assessed the budgeted income and expenditure alongside the reserves of the Charity. The Trustees believe there is sufficient working capital for at least 12 months from approval and that there is no material uncertainty at this time. Accordingly, the Trustees continue to adopt this basis of accounting in preparing the financial statements.
## **Income**
Income including donations and gifts receivable is credited to the Statement of Financial Activities when the charity is legally entitled to the funds after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
Legacies are regarded as receivable once probate has been granted, there is sufficient evidence regarding the certainty of the receipt and there is a sufficiently reliable measurement of the amount in accordance with the recognition criteria of the SORP. In practice this is rarely before the receipt of a letter advising of an intended payment or transfer. Interim receipts are treated as being receivable on receipt. Where legacies have been notified to the charity, or the charity is aware of 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 in note 3.
Funding received in advance including grants are treated as deferred income where the funding agency requires an ongoing service to be provided by expenditure in the future period to which the funding relates.
-36-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **1 Accounting policies (continued)**
Gifts donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impracticable to fair value the items due to the volume of low value items they are not recognised in the financial statements until they are sold. This income is recognised within ‘Income from other trading activities’.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends and interest and is included when the amount can be reliably measured.
Income from charitable activities includes income from NHS England and other support from the UK government including under the Coronavirus Job Retention Scheme (CJRS) to support the charity following the impact of COVID-19.
## **Expenditure**
All expenditure is accounted for on an accruals basis in the expense categories required by the SORP. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Costs are further allocated between the activities undertaken on a basis consistent with the use of the resources. Expenditure includes irrecoverable VAT.
Charitable expenditure includes costs incurred in the delivery of the charities activities and services. It includes both direct costs, including staff costs, that are incurred in the delivery of the activities and services and indirect costs which are required to support the delivery of the charitable objects.
Costs of raising funds include those costs in relation to the charity’s operations which are used to generate further income which is integral to the charity in meeting its charitable objectives.
Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
Redundancy costs are expensed when the liability for payment of such costs is incurred.
## **Donated services and facilities**
Donated services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit is probable and that economic benefit can be reliably measured. In accordance with SORP (FRS 102) no amounts are included in the financial statements for services donated by volunteers.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure on period of receipt.
-37-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **1 Accounting policies (continued)**
## **Investments**
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Investments are subsequently stated at fair value if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments, such as the investment in the subsidiary, are measured at cost less impairment. The SOFA included the net gains and losses arising on revaluations and disposals throughout the year.
## **Fixed assets**
All fixed assets are initially recorded at cost. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their residual value, over their expected useful lives on the following bases:
Freehold property - 2% straight line Equipment - 25% reducing balance Motor vehicles - 20% straight line Leasehold property - 10% straight line
No depreciation is charged on freehold land.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items and a FIFO cost formula is used. Donated stocks are not valued in the accounts due to the undue cost of calculating such amounts against any benefit of recognising such amounts.
## **Debtors and creditors within one year**
Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Cash and cash equivalents**
Cash is a basic financial asset and includes cash in hand and deposits held on call with banks and investment managers.
## **Fund accounting**
## _Unrestricted funds_
General funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.
## _Designated funds_
Designated funds are unrestricted funds set aside by the Trustees for particular purposes.
## _Restricted funds_
Restricted funds arise where there is a donor imposed restriction on the use of the funds, or the funds have arisen in response to an appeal for a specified purpose. Transfers are made from Restricted to Unrestricted funds when the expenditure has been fully made in accordance with the objects of the fund.
-38-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **1 Accounting policies (continued)**
## **Operating lease agreements**
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
## **Pensions**
The Hospice operates two pension schemes; certain eligible employees are members of the NHS defined benefit scheme and others are members of a defined contribution pension scheme. The pension charge represents the amounts payable by the charity to the funds in respect of the current year.
## **Taxation**
HM Revenue & Customs considers the Hospice of St Mary of Furness to be a charity and therefore they are entitled to exemption from tax afforded by Sections 478-489 of the Corporation Taxes Act 2010 to the extent that income is applied exclusively for charitable purposes.
## **Financial instruments**
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _Basic financial assets_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _Impairment of financial assets_
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the statement of comprehensive income.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed.
## _De-recognition of financial assets_
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
-39-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **1 Accounting policies (continued)**
_Classification of financial liabilities_
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
## _Basic financial liabilities_
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
_De-recognition of financial liabilities_
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
## **2 Judgements and key sources of estimation uncertainty**
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **Key assumptions, judgements and estimates**
In the opinion of the Trustees’ there have been no significant judgements made in the process of applying the above accounting policies. There have been no key assumptions concerning future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
-40-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **3 Income from donations and legacies**
|**Group**
Direct donations
Legacies
Bereavement contributions
Payroll deductions
Charitable trusts
Gift Aid
Grants
**Charity**
Direct donations
Legacies
Bereavement contributions
Payroll deductions
Charitable trusts
Gift Aid
Grants|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
558,958
-
**558,958**
631,791
470,120
-
**470,120**
410,369
143,676
530
**144,206**
128,712
1,450
-
**1,450**
1,505
173,589
187,668
**361,257**
150,286
43,407
-
**43,407**
27,572
125,438
73,513
**198,951**
43,942|
|---|---|
||**1,516,638**
**261,711**
**1,778,349**
1,394,177|
||**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
558,958
-
**558,958**
631,791
470,120
-
**470,120**
410,369
143,676
530
**144,206**
128,712
1,450
-
**1,450**
1,505
173,589
187,668
**361,257**
150,286
43,407
-
**43,407**
27,572
100,966
73,513
**174,479**
43,942|
||**1,492,166**
**261,711**
**1,753,877**
1,394,177|
|||
Income from donations and legacies included £56,376 in restricted funds and £1,337,801 in unrestricted funds in the prior year for both charity and group.
At the year end, the Trustees had been notified of legacies approximating £2,500 which did not meet the criteria for inclusion in these financial statements under SORP (FRS 102) which is further explained in the accounting policies on page 25.
## **4 Income from charitable activities**
|**Income from charitable activities**||
|---|---|
|**Group and charity**
Grants and core fundings
Hospice UK Capacity funding|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
746,984
-
**746,984**
660,224
-
778,100
**778,100**
-|
||**746,984**
**778,100**
**1,525,084**
660,224|
|||
All income from charitable activities was unrestricted in the prior year.
Grant funding relates to the provision of core services at the Hospice. There are no unfulfilled conditions or other contingencies attached to the income recognised.
-41-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **5 Income from trading activities**
|**Group**
Lottery gross income
Charity trading income
Fundraising events
Catering
**Charity**
Lottery gross income
Charity trading income
Fundraising events
Catering|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
434,778
-
**434,778**
406,058
271,186
-
**271,186**
575,429
111,197
-
**111,197**
112,562
70,820
-
**70,820**
164,070|
|---|---|
||**887,981**
**-**
**887,981**
1,258,119|
||**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
434,778
-
**434,778**
406,058
271,186
-
**271,186**
575,429
111,197
-
**111,197**
112,562
83
-
**83**
-|
||**817,244**
**-**
**817,244**
1,094,049|
|||
All income from trading activities was unrestricted in the prior year.
## **6 Income from investments**
|**Group and charity**
Bank and investment interest receivable|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
29,596
-
**29,596**
46,547|
|---|---|
||**29,596**
**-**
**29,596**
46,547|
|||
All income from investments was unrestricted in the prior year.
-42-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **7 Other income**
|**Other income**||
|---|---|
|**Group**
Support groups
Recycing income
Other incoming resources
**Charity**
Support groups
Recycing income
Other incoming resources|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
8,778
-
**8,778**
29,214
2,945
-
**2,945**
10,858
92,524
-
**92,524**
67,055|
||**104,247**
**-**
**104,247**
107,127|
||**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
8,778
-
**8,778**
29,214
2,945
-
**2,945**
10,858
92,481
-
**92,481**
74,555|
||**104,204**
**-**
**104,204**
114,627|
|||
Other income included £482 in restricted funds in the prior year for both charity and group. All other income was unrestricted.
## **8 Expenditure on charitable activities**
|**Group and Charity**
**Activity**
Wages and salaries
Depreciation
Equipment and repairs
Catering
Premises costs
Office costs
Travel
Bank charges
Other
Audit fees
Legal and professional fees
Profit on disposals of fixed assets|**Total**
Total
**Unrestricted**
**Restricted**
**2021**
2020
**£**
**£**
**£**
£
1,160,802
924,136
**2,084,938**
1,835,896
113,541
-
**113,541**
108,090
60,814
7,748
**68,562**
100,034
17,739
-
**17,739**
15,806
75,387
1,204
**76,591**
77,581
71,219
736
**71,955**
108,602
21,487
-
**21,487**
27,196
14,679
-
**14,679**
10,487
103,681
510
**104,191**
96,792
6,050
-
**6,050**
4,900
11,875
-
**11,875**
11,897
291
-
**291**
-
**Provision of Hospice and other related services**|
|---|---|
||**1,657,565**
**934,334**
**2,591,899**
2,397,281|
|||
Expenditure on charitable activities included restricted funds of £69,087 and unrestricted funds of £2,328,194 in the prior year.
-43-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **9 Expenditure on raising funds**
|**Group**
Fundraising costs
Shop costs
Lottery costs
Catering costs
Audit fees
Depreciation
**Charity**
Fundraising costs
Shop costs
Lottery costs|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
128,398
-
**128,398**
142,782
380,425
-
**380,425**
400,626
165,445
-
**165,445**
223,260
130,698
-
**130,698**
147,363
1,653
-
**1,653**
1,620
297
-
**297**
108|
|---|---|
||**806,916**
**-**
**806,916**
915,759|
||**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2021**
2020
**£**
**£**
**£**
£
128,398
-
**128,398**
142,782
380,425
-
**380,425**
400,626
165,445
-
**165,445**
223,260|
||**674,268**
**-**
**674,268**
766,668|
|||
Expenditure on raising funds included £3,278 in restricted funds for both charity and group in the prior year. All other funds were unrestricted.
## **10 Net income/expenditure**
|**Net income is stated after charging:**
**Group**
Operating lease rentals
Staff pension contributions
Payment to Directors for services as
Hospice Chief Exec
Auditors' remuneration
- audit of the financial statements
Depreciation of tangible assets
- owned by the charity|**Group**
Group
**Charity**
Charity
**2021**
2020
**2021**
2020
**£**
£
**£**
£
**74,870**
100,153
**72,638**
97,711
**130,603**
112,252
**128,629**
110,818
**62,043**
67,468
**62,043**
67,468
**7,703**
6,520
**6,050**
4,900
**113,838**
108,199
**113,541**
108,090|
|---|---|
|||
Included within payments to Directors for services as Hospice Chief Executive are £4,046 (2020: £4,414) in defined pension contributions.
-44-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **11 Fund transfers**
During the year certain restricted fund balances were transferred to unrestricted funds as they had been used in full in line with requirements by the funder to purchase tangible fixed assets for general use by the charity. Further transfers have been made into restricted funds where expenditure on a particular project exceeded restricted income, where these funds are now fully utilised.
Further details of transfers are included within note 19.
## **12 Analysis of staff costs, trustee remuneration and the cost of key management personnel**
|**Total staff costs were as follows:**
Wages and salaries
Social security costs
Pension costs|**2021**
2020
**£**
£
**2,122,054**
1,940,173
**163,497**
140,105
**130,603**
112,252|
|---|---|
||**2,416,154**
2,192,530|
|||
## **Particulars of employees:**
The average number of employees during the year, calculated on the basis of full-time equivalents, was as follows:
|Number of nursing and care services staff
Number of fundraising and administration staff|**2021**
2020
**No**
No
**57**
57
**37**
39|
|---|---|
||**94**
96|
The total head count staff numbers for the year were 69 (2020: 68) for clinical staff and 52 (2020: 53) for non clinical staff.
The number of employees whose remuneration for the year fell within the following bands were:
|£60,000 - £69,999|**2021**
2020
**No**
No
**1**
1|
|---|---|
|||
Certain employees with emoluments above £60,000 received contributions totalling £4,046 (2020: £4,414) to a money purchase pension scheme.
No remuneration or expenses were paid to any of the Trustees in the current or prior year.
-45-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **12 Analysis of staff costs, trustee remuneration and the cost of key management personnel (continued)**
The number of directors for whom retirement benefits are accruing under money purchase schemes amounts to 1 (2020: 1).
The total amount of employee benefits received by key management personnel, as determined by the charity, is £283,317 (2020: £330,862) during the current period.
During the year the charity made redundancy and ill health severance payments totalling £18,846 (2020: £8,404).
The Hospice participates in the NHS pension scheme which is a defined benefit scheme whose membership consists of employees of the NHS and related bodies.
The scheme operates as a pooled arrangement, with contributions for eligible staff paid at a centrally agreed rate. As a consequence of this, no share of the underlying asset and liabilities can be directly attributable to the Hospice, therefore as permitted by FRS102, contributions are accounted for as if the scheme were a defined contribution scheme, based on actual contributions paid through the year.
The Hospice also operates a defined contribution pension scheme. The contributions paid into these two schemes in respect of eligible employees for the year ended 31 March 2021 amounted to £130,603 (2020: £112,252).
## **13 Tangible fixed assets**
|**Group**
**Cost**
At 1 April 2020
Additions
Disposals
**At 31 March 2021**
**Depreciation**
At 1 April 2020
Charge for the year
Eliminated on disposals
**At 31 March 2021**
**Net book value**
**At 31 March 2021**
At 1 April 2020|**Land and**
**Motor**
**Buildings**
**Equipment**
**Vehicles**
**Totals**
**£**
**£**
**£**
**£**
3,161,236
919,677
68,429
4,149,342
13,446
53,346
16,500
83,292
-
-
(6,860)
(6,860)|
|---|---|
||**3,174,682**
**973,023**
**78,069**
**4,225,774**|
||989,866
852,978
54,248
1,897,092
76,438
33,224
4,176
113,838
-
-
(4,768)
(4,768)|
||**1,066,304**
**886,202**
**53,656**
**2,006,162**|
||**2,108,378**
**86,821**
**24,413**
**2,219,612**|
||2,171,370
66,699
14,181
2,252,250|
|||
Included within Land and Buildings are assets with a total cost of £168,097 (2020: £162,070) and a net book value of £130,281 (2020: £140,586) which relate to leasehold property. The balance of this asset class relates to freehold property.
-46-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **13 Tangible fixed assets (continued)**
|**Charity**
**Cost**
At 1 April 2020
Additions
Disposals
**At 31 March 2021**
**Depreciation**
At 1 April 2020
Charge for the year
Eliminated on disposals
**At 31 March 2021**
**Net book value**
**At 31 March 2021**
At 1 April 2020|**Land and**
**Motor**
**Buildings**
**Equipment**
**Vehicles**
**Totals**
**£**
**£**
**£**
**£**
3,161,236
918,257
66,091
4,145,584
13,446
52,671
16,500
82,617
-
-
(6,860)
(6,860)|
|---|---|
||**3,174,682**
**970,928**
**75,731**
**4,221,341**|
||989,866
852,610
51,910
1,894,386
76,438
32,927
4,176
113,541
-
-
(4,768)
(4,768)|
||**1,066,304**
**885,537**
**51,318**
**2,003,159**|
||**2,108,378**
**85,391**
**24,413**
**2,218,182**|
||2,171,370
65,647
14,181
2,251,198|
|||
Included within Land and Buildings are assets with a total cost of £168,097 (2020: £162,070) and a net book value of £130,281 (2020: £140,586) which relate to leasehold property. The balance of this asset class relates to freehold property.
## **14 Investments**
|**Group**
**Other investments at valuation**
Balance brought forward
Acquisitions at cost
Disposals at cost
Unrealised gains/(losses) on sale of investments|**2021**
2020
**£**
£
**931,451**
1,020,522
**-**
-
**(2,148)**
(5,477)
**129,936**
(83,594)|
|---|---|
|Cash held as part of investment portfolio|**78,796**
55,035|
|**Total investments at 31 March 2021**
Total investments comprise of the following types of investments;
UK listed equities & fixed interest securities
Overseas listed equities & fixed interest securities
Property and alternative investments
Commodities
Cash held as part of investment portfolio||
||**1,138,035**
986,486|
||**510,670**
381,165
**332,353**
406,266
**162,989**
119,703
**53,227**
24,317
**78,796**
55,035|
||**1,138,035**
986,486|
|||
-47-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **14 Investments (continued)**
|**Charity**
**Investment in subsidiary undertakings**
3 shares in St Mary's Orangery Limited
**Other investments**
Balance brought forward
Acquisitions at cost
Disposals at cost
Unrealised gains/(losses) on sale of investments
Cash held as part of investment portfolio
**Total investments at 31 March 2021**
Total investments comprise of the following types of investments;
UK listed equities & fixed interest securities
Overseas listed equities & fixed interest securities
Property and alternative investments
Commodities
Cash held as part of investment portfolio
Investments in subsidiary undertakings|**2021**
2020
**£**
£
**3**
3
**931,451**
1,020,522
**-**
-
**(2,148)**
(5,477)
**129,936**
(83,594)
**78,796**
55,035|
|---|---|
||**1,138,038**
986,489|
||**510,670**
381,165
**332,353**
406,266
**162,989**
119,703
**53,227**
24,317
**78,796**
55,035
**3**
3|
||**1,138,038**
986,489|
|||
## **Investment in subsidiary undertakings**
The subsidiary company is incorporated in England and Wales (company number 03052962) with an issued share capital of 3 ordinary shares of £1 each which are wholly owned by the charity. The details of the subsidiary and the results for the year are as follows:
|**St Mary's Orangery Limited**
**Turnover**
Cost of sales and other direct costs
**Gross profit**
Administrative expenses
Other operating income
**Net assets**|**2021**
2020
**£**
£
**70,737**
164,070
**(19,090)**
(54,004)|
|---|---|
||**51,647**
110,066
**(76,720)**
(72,260)
**24,515**
-|
||**(558)**
37,806|
|||
||**413**
37,809|
|||
-48-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|**15**
**Stock**
**Group**
Group
**2021**
2020
**£**
£
Stock
**8,896**
9,893
**16**
**Debtors**
**Group**
Group
**2021**
2020
**£**
£
Other debtors
**102,119**
38,016
Prepayments and accrued income
**207,680**
205,230
**309,799**
243,246
**17**
**Creditors: Amounts falling due within one year**
**Group**
Group
**2021**
2020
**£**
£
Trade creditors
**34,387**
45,614
Taxation and social security
**46,977**
36,682
Other creditors
**1,013**
6,614
Accruals and deferred income
**146,202**
138,867
**228,579**
227,777
**Deferred income**
Balance brought forward
Lottery income received in advance
Grants received in advance
Release of deferred income|||
|---|---|---|
||**Group**
Group
**2021**
2020
**£**
£
**8,896**
9,893|**Charity**
Charity
**2021**
2020
**£**
£
**7,787**
8,684|
||||
||||
||**Group**
Group
**2021**
2020
**£**
£
**102,119**
38,016
**207,680**
205,230|**Charity**
Charity
**2021**
2020
**£**
£
**108,012**
47,979
**207,680**
205,230|
||**309,799**
243,246|**315,692**
253,209|
||||
||||
||**Group**
Group
**2021**
2020
**£**
£
**34,387**
45,614
**46,977**
36,682
**1,013**
6,614
**146,202**
138,867|**Charity**
Charity
**2021**
2020
**£**
£
**34,225**
43,977
**46,874**
32,084
**1,013**
6,614
**143,493**
137,307|
||**228,579**
227,777|**225,605**
219,982|
|||**2021**
2020
**£**
£
**62,617**
70,388
**61,840**
55,050
**1,892**
7,567
**(62,617)**
(70,388)|
|||**63,732**
62,617|
||||
-49-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **18 Commitments under operating leases**
As at 31 March 2021 the group and charity had commitments under non-cancellable operating leases as set out below:
|**Group and Charity**
Within 1 year
Within 2 to 5 years|**2021**
**2021**
2020
2020
**Land and**
**Other**
Land and
Other
**Buildings**
**items**
Buildings
items
**£**
**£**
£
£
**82,088**
**2,184**
27,063
2,184
**100,350**
**6,552**
11,250
8,736|
|---|---|
||**182,438**
**8,736**
38,313
10,920|
|||
-50-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **19 Restricted income funds: Current year**
||**At 1**||||**At 31**|
|---|---|---|---|---|---|
||**April**||||**March**|
||**2020**|**Income **|**Expenditure**|**Transfers**|**2021**|
||**£**|**£**|**£**|**£**|**£**|
|**Restricted funds**||||||
|6 Steps Project|7,773|-|-|-|**7,773**|
|Zurich Pre-Bereavement||||||
|Support|252|-|(256)|4|**-**|
|Domicilliary Massage|4,391|5,675|(314)|-|**9,752**|
|Zurich Community Trust|122|-|(122)|-|**-**|
|Sir John Fisher Foundation|15,568|-|(15,568)|-|**-**|
|Town Lands Trust|400|-|(623)|223|**-**|
|Enhancing EOLC in care||||||
|homes|7,936|-|-|-|**7,936**|
|Coop IPU and Kitchen fund|192|-|(224)|32|**-**|
|Rank Foundation Pathway||||||
|fund|(10,906)|12,000|1,607|(2,701)|**-**|
|Hadfield Trust Hoist|2,450|-|-|(2,450)|**-**|
|Mary Dunsford Harpist Fund|500|-|-|-|**500**|
|Roselands Trust|-|10,207|(2,251)|(7,656)|**300**|
|Pappagallino Fund|-|25,000|(25,000)|-|**-**|
|Co-operative Community Fund|-|4,082|(134)|(1,176)|**2,772**|
|Freemasons Equipment Fund|-|1,072|(1,072)|-|**-**|
|Albert Hunt Trust Fund|-|7,000|(7,000)|-|**-**|
|Cumbria Community||||||
|Foundation|-|10,000|(10,000)|-|**-**|
|National Lottery Awards for||||||
|All|-|10,000|(10,000)|-|**-**|
|National Lottery Community||||||
|Fund|-|41,667|(28,465)|(10,934)|**2,268**|
|Skipton Building Society|-|2,900|(3,028)|128|**-**|
|Frieda Scott Trust|-|16,768|(11,033)|-|**5,735**|
|Hadfield Trust SEN Scanner|-|5,835|-|(5,835)|**-**|
|Town Lands Greenhouse||||||
|Fund|-|2,085|(627)|(1,458)|**-**|
|Town Lands Bereavement||||||
|Fund|-|-|(1,071)|2,500|**1,429**|
|CCF IT Fund|-|10,277|-|(10,277)|**-**|
|CGP Garden Shed Fund|-|1,000|-|-|**1,000**|
|Elspeth J Thompson Special||||||
|Care Mattress Fund|-|2,500|-|(2,500)|**-**|
|CCF Family and||||||
|Bereavement Support|-|20,326|(13,967)|-|**6,359**|
|BAE GAYE Specialist Bath|-|2,600|-|-|**2,600**|
|Pappagallino Fund|-|50,000|(26,556)|-|**23,444**|
|SJFF Hospice at Home||||||
|Vehicle|-|18,000|-|(18,000)|**-**|
|Hospice UK NHSE Covid||||||
|Fund|-|778,100|(778,100)|-|**-**|
|Garden Materials Fund|-|500|-|-|**500**|
|Coop Good Causes|-|1,687|-|-|**1,687**|
|Night Sitting Fund|-|530|(530)|-|**-**|
|**Total funds**|**28,678**|**1,039,811**|**(934,334)**|**(60,100)**|**74,055**|
|||||||
-51-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **19 Restricted income funds: Current year - continued**
The 6 Steps Project is a fund for a training programme for care homes to up-skill them in the area of end of life care.
The Zurich Pre-Bereavement support grant was awarded to enable is to provide a pre-bereavement support service within the Inpatient unit and Hospice at Home services.
The Domicillary Massage fund is provided by Cumbria Partnership Trist to enable us to provide additional domicillary massage to patients in their own homes, earlier in their illness.
The Zurich Community Trust fund is for the purchase of equipment for one of the therapy rooms at the Living Well Centre in Barrow.
The Sir John Fisher Foundation fund was provided to fund the employment of a site manager for the Living Well Centre in Barrow, and to fund the appointment of an Occupational Therapist.
The fund from Ulverston Townlands Trust is provided for the purchase of new bed frames.
The fund for enhancing end of life care in care homes was provided by the CCG, to enable the Hospice to share their expertise with staff in local care homes to facilitate best practice in end of life care.
The fund from the Co-op Community Fund was for works to the IPU and Kitchens.
The Rank Foundation grant is to enable new access to outdoor spaces and day care facilities to enhance the experience of our patients and their families. This fund was in deficit at the beginning of the year as funding can only be claimed via Hospice UK once expenditure has been incurred.
The fund from the Hadfield Trust was provided for the purchase of new patient hoists.
The donation in memory of Mary Dunsford is to enable us to pay for a harpist on the IPU.
The fund from Roselands Trust was provided to create a pathway away from vehicles to access the Hospice reception.
The Pappagallino Flow Through fund was provided through Cumbria Community Foundation to support our Hospice at Home service.
The fund from Cooperative Community Fund was for the provision of equipment for the Living Well Centre.
The Freemasons kindly provided a fund for the purchase of clinical equipment for our IPU and Hospice at Home services.
The Albert Hunt trust fund helped to fund the salaries of our medical team.
Cumbria Community Foundation provided a fund to support our Covid-19 response, including training mental health nurses and providing palliative support to Furness General Hospital.
The National Lottery Awards for All project provided support into our core bereavement service early in the Covid-19 pandemic.
The National Lottery Community Fund also provided support for our core bereavement service response to Covid-19, funding both salary costs and equipment.
The fund from Skipton Building Society was provided to purchase equipment for our Living Well Service.
-52-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **19 Restricted income funds: Current year - continued**
The grant from the Frieda Scott Trust was to cover the activities of our Living Well service.
The Hadfield Trust gave us a grant to purchase an SEN scanner.
The Townlands trust gave us a grant to purchase an accessible greenhouse for use by our Day Hospice patients.
The Townlands trust also provided a grant to support the activities of our gardening bereavement group.
Cumbria Community Foundation provided a grant to purchase replacement IT equipment to enable flexible working during the Covid-19 pandemic.
The grant from CGP was to create an accessible garden shed for our Sunflower garden.
The Elspeth J Thompson fund was provided to purchase a special care mattress.
Cumbria Community Foundation provided a fund to cover the salary costs of our bereavement services.
The BAE GAYE fund was for the purchase of a specialist bath for our inpatient unit.
The Pappagallino Flow Through fund was provided through Cumbria Community Foundation to further support our Hospice at Home service.
The fund provided by the Sir John Fisher Foundation was to enable us to provide a replacement 4x4 vehicle for our Hospice at Home service.
The NHSE awarded funding to allow the hospice to make available bed capacity and community support from Aril 2020 to July 2020 to provide support to people with complex needs in the context of the Covid-19 situation,and to provide bed capacity and support from November 2020 to March 20201 for the same purpose.
The garden materials donation was made to enable the purchase of materials for the garden.
The Co-op Good Causes garden initiative funding is to further support our bereavement gardening project.
The night sitting fund was a donation made specifically to provide Hospice at Home night sits.
-53-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **20 Restricted income funds: Prior year**
|**Restricted funds**
6 Steps Project
Town Lands Trust
Sheila Werry CT fund
Orsted Living Well Fund
Zurich Pre-Bereavement
Support
Domicilliary Massage
Make Do and Mend
NWAS Paramedic Project
Zurich Community Trust
Sir John Fisher Foundation
Town Lands Trust
Enhancing EOLC in care
homes
Coop IPU and Kitchen fund
Rank Foundation Pathway
fund
Hadfield Trust Hoist
Mary Dunsford Harpist Fund
Barrow Bid Santa Dash fund
Charity & Co Syringe Drivers
Elspeth J Thompson Syringe
Drivers
**Total funds**|**At 1**
**At 31**
**April**
**March**
**2019**
**Income Expenditure**
**Transfers**
**2020**
**£**
**£**
**£**
**£**
**£**
7,773
-
-
-
**7,773**
301
-
(295)
(6)
**-**
12
-
(12)
-
**-**
(1,744)
13,448
(11,704)
-
**-**
275
-
(23)
-
**252**
1,319
5,675
(2,603)
-
**4,391**
(7,421)
19,950
(4,629)
(7,900)
**-**
6,018
2,400
(8,418)
-
**-**
2,000
-
(1,878)
-
**122**
36,913
-
(21,345)
-
**15,568**
3,297
-
-
(2,897)
**400**
12,651
-
(4,715)
-
**7,936**
-
7,965
(1,758)
(6,015)
**192**
-
-
(10,906)
-
**(10,906)**
-
2,450
-
-
**2,450**
-
500
-
-
**500**
-
600
(554)
(46)
**-**
-
1,500
(1,185)
(315)
**-**
-
2,370
(2,340)
(30)
**-**|
|---|---|
||**61,394**
**56,858**
**(72,365)**
**(17,209)**
**28,678**|
|||
-54-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
**NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **21 Unrestricted income funds: Current year**
|**Group**
Designated Funds
General Funds
**Unrestricted funds**
**Charity**
Designated Funds
General Funds
**Unrestricted funds**|**At 1**
**At 31**
**April**
**Gains/**
**March**
**2020**
**Income Expenditure Transfers**
**(losses)**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
2,289,093
39,195
(154,245)
78,957
-**2,253,000**
2,904,512
3,246,251
(2,310,236)
(18,857)
129,936**3,951,606**|
|---|---|
||**5,193,605**
**3,285,446**
**(2,464,481)**
**60,100**
**129,936 6,204,606**|
||2,288,044
39,195
(153,948)
78,282
-**2,251,573**
2,867,757
3,150,999
(2,177,885)
(18,182)
129,936**3,952,625**|
||**5,155,801**
**3,190,194**
**(2,331,833)**
**60,100**
**129,936 6,204,198**|
|||
The designated funds comprise of the fixed assets of the group and charity as these are necessary for the day to day operation of the Hospice and are therefore not considered to be generally available funds for use at the discretion of the Trustees in line with the charity’s objectives. Also included are two funds designated by the Trustees for specific purposes as follows; £10,187 for a Facilitator post extension and £23,191 for HCA funds received to offer support as a result of Covid-19. The investment in subsidiaries and associates is also designated fund.
## **22 Unrestricted income funds: Prior year**
|**Group**
Designated Funds
General Funds
**Unrestricted funds**
**Charity**
Designated Funds
General Funds
**Unrestricted funds**|**At 1**
**At 31**
**April**
**Gains/**
**March**
**2019**
**Income Expenditure Transfers**
**(losses)**
**2020**
**£**
**£**
**£**
**£**
**£**
**£**
2,356,566
30,000
(140,249)
42,776
-
**2,289,093**
2,734,763
3,379,336
(3,100,426)
(25,567)
(83,594) **2,904,512**|
|---|---|
||**5,091,329**
**3,409,336**
**(3,240,675)**
**17,209**
**(83,594) 5,193,605**|
||2,356,398
30,000
(140,142)
41,788
-
**2,288,044**
2,704,606
3,222,766
(2,951,442)
(24,579)
(83,594) **2,867,757**|
||**5,061,004**
**3,252,766**
**(3,091,584)**
**17,209**
**(83,594) 5,155,801**|
|||
-55-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **23 Analysis of net assets between funds: Current year**
|**Group**
Restricted Income Funds
Designated Funds
General Funds
**Total funds**
**Charity**
**Unrestricted income funds:**
Restricted Income Funds
Designated Funds
General Funds
**Total funds**|**Tangible**
**Fixed asset**
**Net current**
**Long term**
**fixed assets**
**investments**
**assets**
**liabilities**
**Total**
**£**
**£**
**£**
**£**
**£**
-
-
74,055
-
74,055
2,219,612
10
33,378
-
2,253,000
-
1,138,025
2,813,581
-
3,951,606|
|---|---|
||**2,219,612**
**1,138,035**
**2,921,014**
**-**
**6,278,661**|
||-
-
74,055
-
74,055
2,218,182
13
33,378
-
2,251,573
-
1,138,025
2,814,600
-
3,952,625|
||**2,218,182**
**1,138,038**
**2,922,033**
**-**
**6,278,253**|
|||
Restricted funds for the current year are detailed in note 19 to the financial statements.
-56-
**HOSPICE OF ST. MARY OF FURNESS (COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2021**
## **24 Analysis of net assets between funds: Prior year**
**----- Start of picture text -----**
Group Tangible Fixed asset Net current Long term
fixed assets investments assets liabilities Total
£ £ £ £ £
Restricted Income Funds - - 28,678 - 28,678
Designated Funds 2,252,250 10 36,833 - 2,289,093
General Funds - 986,476 1,918,036 - 2,904,512
Total funds 2,252,250 986,486 1,983,547 - 5,222,283
Charity
Unrestricted income funds:
Restricted Income Funds - - 28,678 - 28,678
Designated Funds 2,251,198 13 36,833 - 2,288,044
General Funds - 986,476 1,881,281 - 2,867,757
Total funds 2,251,198 986,489 1,946,792 - 5,184,479
**----- End of picture text -----**
Restricted funds from the prior year are detailed in note 20 to the financial statements.
## **25 Control and related party transactions**
The charity was under the control of the Board of Trustees’ who are also directors for the purposes of company law in both the current and prior period.
No employee benefits were paid to any of the Trustees’ during the current or period year and none of the Trustees’ received any expenses from the charity during the same periods.
There are no further disclosable related party transactions for the charity.
## **26 Company Limited by guarantee**
The company is limited by guarantee. In the event of the company being wound up or dissolved, each member undertakes to contribute such amount as is required, not exceeding £1, for payment of any debts or liabilities.
-57-