Company regi5tratlDn numbei:02263960 Charity registration number: 519659 DERWENTSIDE HOSPICE CARE FOUNDATION IA compary limited by guarantee) Annual Report & Financial Staiements for the Year ending 31 March 2023
Derwentside Hospice Care FoundatSon Contents Reference and Administrative Detai15 Trustees, Report Staternent Of Trustees. responsibilities 12 Independent Auditorf5 Report to the member5 13 Statement of Financial ActNitie5 17 Balance Sheei 18 Statement of Cash Flows 19 Notes to the Financi31 Statements 20
Derwentside Hospice Care Foundation Reference and Admlnlstrative Detai15 Company Reglslratlon Number 02263960 Charity Resistration Number $19659 Solicitors Ward Hadaway 102 Quayside Newcastle upon Tyne Tyne &Wear NEI 3DX Bankers Lloyd5 Bank I Victoria Road Conselt Durham DH8 SAE CAF Bank Lirnited Head Office Kin65 Hill West Malling Kent ME19 4TA Inve5trnent Managers CCLA Investment Management Limited One Angel Lane London EC4R 3AB Auditor Haine5 Watts North East Audit LLP 17 Queens Lane Newcastle upon Tyne NEI IRN Page | I
Derwentside Hospice Care Foundation Reference and Administrative Detai15 Trustees P jackson Ichairl A Allon R Bennett S E Brent l A Burke Dr C T Kelly M H McArdle P Pollard L Telftsrd Key managemLt Persannel D E Barker- Director of Operation5 C Hagri- Head of Clinical C P Hewitt- Head of Flnance ILeft Aprll 20231 R Todd- Head of Marketing & Fundralsing A L Watson- Head of Finance (Appointed April 20231 Principal Office Willow Burn H05pice Howden Bank Lanchester Durham DH7 OQS The charity is Incorporated in England and Wales. Pagel 2
Denventside Hospice Care Foundation Trustees, Report The Trustees. who are directors for the purpw)5e5 of company law, present the annual report together with the financial statements and auditors, rewrt of the charitable company forthe year ended 31 March 2023. Report from the Chair of the Bo?rd The year to end March 2023 was a successful year for the charity with both setvices and fundraising develtsping under a strong governance and leadership team. The hospice in patient unit Wa5 as bv5y as ever, provlding high quality care and 5UPPart to people ot the end of life, and their familie5. Our Oay Services proved as popular as ever and we expanded our range of 5Ervice5 to include further support sessions for carers. The growth in dernand for Bereavement Support continued and we Int35ed the capacity of our. muth needed, Childrens Bereavemeni Coun5elling Service. Our Complementary Therapy offer was a150 extended. Highlighis of our Communlty Engagement work came through our most successful Charity Ball ever. the annual Light Up A Life SeNice at All Saint's Church, Lanche5ter and a fantastic performance of our fundraisers through events Ilke the Great North Run. The Willows Cafe continues to be both a viial fundraiser for the charity and an energetic community hub. The charity embedded it5 revised Governance Structure Ithrough a Board of Tru5tee5 and three Sub Committees- Compliance & Governance, Marketing & Fundraising and Finance & General Purp05esl. We were delighted to welcDTne two new Trustees tr) the Board, Andrew Allon and Philip Pollard have both proved their worth in augmenting our already strong Truslee set. This year ha5 been a year of policy development in terms of our environmental Sustainability policy and plan. This agenda 15 important to the charity and will lead to further development in the year5 to come. The charity relie5 on a small team of highly dedicated staff delivering high quality care and support. across the wide remit of our activities. The staff are supported, brilliantly, by a team of committetj volunteers. Whether in the gardens. the shops. the cafe. reception and administration or day 5eNice our volunteerfs work is highly regarded by all. Financially, the chority was proud to support our staff through the tost of living crisls with è one.off payment to all staff at Christmas. this was achieved whi15t also being aware of the need to ensure long term financial 5U5talnabillty. l am pleased to tommend Ihi5 Annual Report and Attounts. Paul Jackson Chair of the 8oard of Trustees Page13
DerWentde H05pice Care Foundation Trustees, Report Structurei govemance and management Nature of governing document The organi5ation is a charitable company limited by guarantee, Incorporated on 2 June 1988. The charitable company wa5 estsbli5hed under a Memorèndum of Associatlon thai established the objec15 and powers of the organi5ation and is governed under its Articles of Association passed by special resolution in january 2013. and last updated on 19 May 2022. In the event of the tharitable company being wound up, member5 are required to contribute an amount not exceeding £10. Organi5ational strurture The charity isBoverned by its board of trustee5 who are also the appointed dirlor5 of the company. The number of trustees at present 15 nine. The Trustee5 who served during the year, and were in office up to the signing of this report were;_ P Jackson (Chairl R 8ennett S E Brent IABvrke Dr C T Kelly M H McArdle L Telford A Allon lappointed 8 November 20221 P Pollard (appointed B November 20221 A Britton Iresigned 11 May 20221 Recruitment and appointment of trustees Trustees can be elected or co-opted during the year and thelr appointment is confirmed at the Annual General Meeting IAGMI. At each AGM one third of the Trustees must retire from office. The Trustees to retire by rotallon are those who have been longest in office since their last appointment. The Trustees airn to maintain a balanc&d skills and knowled8e base amongst the Board members by identifying skills 5hortaBes when an opening exist5 for a new member. Representation relevant to the Service v5er group is a key factor given the charity's mission. The Trustees are required to meet at least four times per year. At these meetings member5 receive detailed managernent accounts (including ca5hflow projections and reforecastsl a5 well as reports on operational activities each month. The Board also receive regular presentations and reports on any major developments or proposals. They participate in the strategic planning process and have ultimate responsibility for approval of the strategic plan. Inductlon and training of trustees New trustees are provided with a proper induction prOsS and pack which details everything they need to know about the charity as well as their responsibilities a5 a trustee. Briefing papers and familiarisation training are effected for all trustees, as deemed nece55ary. Page14
Denventside Hospice Care Foundation Trustees, Report Sub-committees The Board of Trustees Is sUPPOrted by the following 3 5ub.committees: Flnance & General oses Sub-committee which comprises of at least two trustees who are independent of the management team and who are fe from any relationship that in the opinion of the board would interfere with the exercise of independerbt judgement a5 members of the gTOUP. The responsibillty of the 8roup is to provide an effective review process of both current and future financial performance. The group is Cltrrently meetin8 four times a year, with monthly performance reporting ontinuing between meetings. The Head of Finance support5 thi5 sub-committee. The focus ofthe Eroup 15 to continue to Strengthen the charlty day-to-day, and develDP the lons-term future of the organi53tion, while ensuring fruitfvl and prudent utilisation of Its re50ufcES. Marketl & Fundraisin Sub<ommittee which comprise5 of at least two trustees who are independent of the management team and who are free frorn any relationship that in the opinion of the board would interfere with the exercise of independent judgement as members of the group. The 8roup is currently meeting four times a year. The Head of Marketing & Fundraising supports this 5ub- committee. The responsibility of the Bfoup is io provide an effective challenge and support in temis of buslness development. fundrai5in8 and marketing of the charity. in line with the wider strategicaims of the h05pice. uali &Com Ilance Sub-committee which comprises of at least two tnjstees who are independent of the management tearn and who are free from any relatlonship that in the oplnlon of the board would interfere with the exercise of independent judgement as member5 of the group. There 15 also a member of the sub-committee who is not a trustee to provide independent 355urance and challenge to the 8roup. The Eroup is currently meeting four times a year. The Head of Clinical Services supports this sub- committee. The responsibility of the group is to provlde an effectlve audit mechanism of current and future clinical activity and the developn7ent of future strategy. Day404Jy management The Director of Operations is responsible for the day-to-day management of the charity's affairs and for implementing the strategy a5 agreed by the Board. Thi5 is done within the boLrndarie5 of the budget and various policies and procedure5 also agreed by the Board. The Director of Operation5 appraises the Chair of any significant issues that may arise between formal meetings. The Dbrector of Operations 15 Supported by a senlor management ream that currently consists of the Head of Clinical SeNices, Head of Marketing & Fundraisin8, Head of Finance and officer Manager. The manage¥nent leam (including the Director of Operations) hold re8ular meetinE5 a5 needed, to address all relevant operational 15sue5. Key Management Petsonnel The Boèrd, who Bive their tirne freely and received no lneratIOn in the year, have considered who the Key Management Personnel IKMPI of the tharity are, as noted in the Reference and Administration section. Together with the Board, these KMP are those in chargè of directing and controlling. running and operating the activities of the charity on a day-to.day basis. The pay of the KMP 15 reviewed annually. The Trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using this infomiation together with the budget and forecast information. ensuring that the Charity can afford any proposed incrEa5es. The Board then 8Bree any uplift to remuneration. Details of the KMP can be found on page 2. Page | S
Derwentside Hospice Care Foundatlon Trustees, Report Objective5 aTrd artivities Objects tsnd ttims Derwentside H05pice Care Foundation's object5 are to promote the lief of sickness bv- Providing appropriate care to people in the life lirniting phase of their illne55 and to SUPPOrt the whole family during thi5 time and in bereavement. Estoblishing, maintaining and conducting hospitHIs, residential nursing home5 and clinits for the feception and care of person5 suffering from any illness, disabilitV4 disease or other infirmity whether physical or mental and providing medical or other treatment and attention for any such person5 either In their own home or at any institution of the charity. Prornoting or assisting in the teaching or trainlng of doctors, nurses, phy5iOtherapi5t5 and other persons engaged in any branch of medicine, surgery* nursing or allied services, anrj in the teachlnE or training of students In any branch of medicine, surgery, nursing or allied services. Conducting or promotin8 research into palliative care and trealment of per50n5 suffering from any such illness, disability, disease or infirmitv a5 aforesaid and particulorly into the care and treatment of persons suffering from cancer or terminal illne55 and to disseminate the useful results thereof to the public. Providing such medical supplies, equipment and apparatus. drugs, amenitie5. comfort5 and other thing5 conducive to the rnaterial or spiritual welfare of any person resident or worklng in any instltutlon of the charity or any person being treated or attending in their own housE5 that the charity may think fit. Arranging lectures and conducting training course5 and publishing pamphlets, books, journals and other publications relating to the workin8 of the charitv. Fundroising disclosures The charity's Head of Marketing & Fundraising continues to be a mernber of the Institute of Fundraising an(J the charity follow5 best practice and re8ulations in all it5 fundraising activity- No complatnts relating to fundraising activities have been received within the reporting period. The charity is registered with The FundraisinE ReELtlator. Publicbenefv The trustees confirm that they have complied with the quIrementS of sectlon 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by ihe Charity Commission for England and Wale5. Page | 6
Derwentside Hospice Care Foundation Tru5tees' Report The Mission, Vison & Values of the charity To deliver hospice care of the highest Standard to our patients and those important to them- now and in the future. Treasuring lives through high quality, personalised, palliative & end of life care and bereavement support. Mlsslon Vlsion Caring: We put care, compassion and dignity at the heart of everything we do. Aspiring: We are passionate about delivering high quality, personalised services. Responsible: We are a responsible organisation that people can trust. Empowering: We support and enable people to make the choices that matter to them. Values Strateglc priorltlts I"1 Cominunlty ÈEngagement Strategic Prlorltles Governance. Talk About.,. Deat High Quallty Servlces Flnanclal Sustainability Playing Our Part Raising Publlc Proflle Engage in emerging themes in h05pice care Develop and deliver research strategy staff Development Major Capital Appeal Services to the wider publlc Compliance The charity's Strategic Priorities are approved annually by Ihe Board of Trustees and a detailed dellvery plan 15 developed in order to ensure pro8ress is made toward5 achieving the strategic aim5. Pa&e17
Derwentslde Hospice Care Foundatlon Trustee< Report Achievements and perfom)ance In Clinical Service5 Willow Burn Hospice has in.patient capacity of six beds in the Helen McArdle Win8. Four of these are currently commissioned by the North East and North Cumbria Integrated Care Board to provide end-of- life care, symptom manaEement and crisis intervention respite support. Spot Purchase requests for the additional bed5 are made for individual need for end-of-life patients. A further contract ha5 been agree(I with Continuin8 Health Care ICHCI for patients who may require longer term funding in a hospi bed where they are a55essed either 05 not 5Ultable for a nursing home placement or have a unique Set of circumstances and 'fit' with the philosophy of hospice care. Admissions are arranged through professional referrals. and a5se55ed and considered on a priorlty need basis. All patients and families have acces5 to our family support team to rneel their psychological and emotional needs as part of a holistic package of care. The in.patient unit IS skffed continuously by one Registered Nurse IRGNI and one Healthcare Assistant IHCAI, with addition31 staffing 355essed for higher deperbdency andlor occupancy. Ouring the year to March 23, the in-PBtient unit cared for 84 patient5 and their families. Average length of stay was 10 days. Clinical support is undertaken through the deployment of two General Practitioner5 With Special Interest IGPSII- When taken with our additional contract for Consultant cover, the charity has direct medical review available three days per week. Arrangernents are also in place to ensure additlonal appropriate medical review is available whenever needed. Day Centre Servi5 continue to meet the needs and wi5he5 of the patients within the phi1050phy of supporting them to'live well with their illne55'. The service is provided three days a week and is managed with a dedicated RGN and HCA. The service provided support to 115 patient5 and their families in the reporting period to March 23. 1070 appointments were attended including an increose in face to face appointmenis. A 12-week prograrnme of planned activitywithin a period of attendance 15 Usually offered, and support and sign-posting to other services is undertaken In preparatiun for discharge or if referrals io the service do not match with our provision. We continue to work wlth other organi5alion5 for reciprocal referTa15 in and out of seNices e.g. County Durham Carers and Macmillarj Canr Suppc¢rt. Day centre Services are augFnented by a Complemeniary Therapy service offering a range of relaxation and wellbeing therapies. The Famlly Seryices and Bereavement support team worked with 177 patients and their familie5 throughout the year. They provide much neede(15UPPOrt and counsellinB to adults and there is also a chiltlren's coun5elling service available. The H05pice ha5 a current Care Quality Commission rating of Good Ila5t in5petted 20161. Performance aspert Iunlts) Year to 31 March 2023 Yearto 31 March 2022 Patient care In-patients admitted B4 85 Total patlents for Day Services lappointmentsl 115110701 5119071 Family Support and Bereavement service5 referra15 218 178 Page 18
Derwentside H05pice Care Foundation Trustees, Report Nothing hus everbeen too much trouble. What mogniAicentsupport. My heort will alwoys be here. Thonk yots to oll stoff. You ore so coring, kind ¢7nd helpfvl. Nothing is too big or too 5moll. I con't thonk you enough, olwoys holding my h¢7nd. Thank you. Financial review The Statement of Financial Activities ISOFAI shows that gross income Increased from £1,243,859 to £1.437,551 and expendlture increased from £1,186,367 ro £1.275,736. This resulted a surplus of £161,81512022- £57,492) which has been allocated to restricted and unrestricted funds as shown in the SOFA. The Trustees are satisfied with this Posltion at the year-end ond are keen to maintain the strength of overall re5eTves in the future. Derwentside Hospice Care Foundation has continued to benefit from various grants during the year and the board of Iru5tees gratefully acknowledge this support. Work continues on w4y5 in which income levels can be sustained and review Df expenditure continues to take place to ensure the charity consistently achievesvalue for money. The Senior Management team are aware of the need to provide an efficient seiCe that offers value for money to the community, without losing the emphasis on patient care and safety. A strategic Teview of the charity 15 now cornpleted with a strong strate8ic plan in place. The Board of Trustees and Senior Managernent Tean7 will continue their efforts to provide a bright future for Oerwentside Hospitè Care Foundation, and a valued service for the people of Derwentside. Policy on resen*es The calculation of fe reseTve5 15 based on the definition included in the charity statement of recommended practice ISORPI, which provides recommendation5 for accountins and reporting for charities. The Trustees have exarnined the requirements of the charity to hold free reserves - those reserves not invested in tangible fixed assets, excluding long term liabilities, or designated for a particular purpose. The Trustees tonsidered it would be appropriate to hold the equivalent of six month5 operating Costs. Thls equates to £650,000. At the year end. Free reserves were E772,61712022- £604,660), an increa5E of £167.957 in the year. Plans fortsture development The charily plans to develop and invest in a numberof new initiatives over the corning year5. Chief among these are- Children'5 Bereavements Counselling- demand for thi5 service has increased ond further plans are underway to increase capacity within thi5 seTvice. Complementary Therapy is key in ensuring the wellbelng of patients and carers. The service started this year has been well received and further plan5 are underway to increase capacity. Research The chariEV has developed a Research programme in partnership with Sunderland University, looking into aspects of Hospice care, including cornmunity pharmacy and ailitude5 to Asslsted Dying. Page19
Denventside Hospice Care Foundation Tru5tee5' Report Retail expan5ion- The charity has plans to develop a furniture store with CYclIng capabilities. Climate cri515- The need forgreaterenergy efFicienty is well understood a5 IS the need to respond to the climate cri515. The charity plans to install a hugely expanded solar panel system to the roof of the Helen McArdle In Patient Unit and 15 exploring the possibllity of filling an Electrlc Vehicle charging port to its car park. Golngconcem The charity rneets its d3y-to-day workin8 capital requirements through cash gellerated from operations. The charity's forecasts and projections for the next twelve months shaw that the charity should be able to continue In operational exisience for that period, taking into account POS5ible changes in trading performance. Having considered the (rnt cash forecasts of the Charity, the TTU5tees have a reasonable expectation that the Charlty has adequate sOUrceS to continue in operational existence for a peritsd of al teast 12 month5 from the date of si8nin8 these financial statements. Obj4rttves and policies The Trustees have a formal rfsk management proces5 to assess business risks and implement risk management strategies. Thi5 proce55 involves identifying the types of risk5 the Charity faces, prioritisinE them in terms of potential impact and likelihood of occurrence. and identifying means of mitigating the risks. A5 Part of this process the Trustees review the adequacy of the CharitV'5 current internal contrDIs and the costs of operating particular controls relative to the benefits obtained. ProCeduS have been established for reporting failings immediately to appropriate levels of manaEement and io the Trusiee5. The Trustee5 are 53tlsfied that the systems and procedures in place are sufficient to adequately mitigate identified risks to an acceptable level in the Charity's day-to-day operation5. Risk envlronment The charity has robust Systems in place for review of the risk registers within the organisation. A annual report is made to Trustees on the risk environment. risk reElSter5 are di5CU5sed at monthly Senior Management Team meetlvl85 and all changes in rlsk status are reported to Tru5tee5. Environrnental. Sustainability and Governance IESGI and CorpoTate responsibility Like many responslble busSnesses, the Hosplce continues to conslder more deeply the impact it has on Its ersviTonment and surroundings and how it Might contribute io a more 5UStainable future. Sustainobility aspect Energy usage Detai15 or circumstances All light fittings are replaced wlth LED bulbs. Travel Meetings can be held on-line if there isn't a specific need to meet in person. Water usage Water reduction valves are fitted to our showers. We store and reL¢se rainwater on site for our gar(lens. Food rniles The C8fé seeks to use in-season food sovrced from local producers where possible. Local environment Look to create empathetic enviroTrments within ourown gardens. Page | 10
Derwentside Hosplce Care Foundation Trustee5' Report The charily has extensive plans to fit addilional solar pane15 to the roof of our In Patient Unit in order to reduce cost5 and our carbon footprint. Performance aspect (Units) Year to 31 March 2023 Year to 31 March 2022 Utilit & resource usa Electricity (kwh) Gas Ithermsl Warer Im31 73.547 150.711 IEI 600 120,353 155.735 623 Pa ment of su liers Creditor days out5tandin8 VolunteÈr5' contribution Estimated hours Indicative valuation 21.778 £232,000 17.700 £183.OOQ Flnanclal Instruments The Hospice engaEed an investment manèger. CCLA, to manaEe a proportion of it5 free cash reserves. The threat of inflation eroding cash worth and low interest rates provided by conventional bank accounts meant that there was a risk of Reserves being depleted in value over time. Taking into account cash forecasts and expectations, a prudent proportion of cash funds were handed over to CCLA to be man8ged in their COIF Ethical Investment Fund. It is intended that this will be a long- term arrangement. to provitle the best opportunity for good returns. but thls wlll be monitored regularlv to ensure that the Fund Managers are performing adeouately and adding to the continuing financial stren8th of the Hospice. other than lindirectlyl within the CCLA Fund, the Hospice does ngt invest in any financi31 instruments. Appointment of auditor Following a formal tender prOs$ in line with the charity's recoEnlsed procedure Haine5 Watts North E05t Audit LLP were appointed auditors for the production of annual account5 as at 31 March 2023. It b5 envi53ged, 5ubjett to annLsal Trustee approval at AGM, that this will be a three year arrangement and will be reviewed in 2025. Page | 11
Derwentside Hospice Care Foundation ststement of Trustees, Responslbillties The Trustees (who are also the directors of Denmentside Hospice Care Foundation for the purpose5 of ompany lawl are responsible for preparing the Trustees. Report and the fi"nancièl statements in accordance with United Xingdom Accounting Standards Iunited Kingdom Generally-Accepted Accounting Practice) and applicable laws and regulations. Company law requires the tru5tee5 to prepare financial statements for each financial year. Under company law the trustees must not approve the financial stbtements unle55 they are Satisfied that they give a true and fair view of the state of affair5 of the charitable company and of its incoming resources and application of resources, including Its income and expenditure, for that period. In preparing these rinancial statements, the trustees are required to- select suitable accounting policies arbd apply them con515tently observe the method5 and principle5 in the Charitie5 SORP make judgemenis and estimate5 that are reasonable and prudent state whether applicable UK Accounting Standard5 have b@en followed, subject ta any materlal departure5 disclosed and explained in the frnancial statement; and prepare the financial 51atements on the going concern basis unless it Is In8ppropriate to presume that the charitable company will continue in btssines5. The Trustees are responsible for keeping adequate accountinB records that are sufficient to show and explaln the charitable compan*5 transactions and di5clo5e with reasonable atturacy at any time the finantial position of the £harit3ble company and enable them to ensure that the financi31 slatement5 comply with the Companie5 Act 2006. They are a150 responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of information to the auditor Each trustee has taken steps that ihey ought to have taken as o tru51ee to rnake themselve5 awaie of any relevant audit inforniation and to establish that the charity's auditor 15 aware of that information. The trustees confirm that there is no relevant informatlon that they know of and of which they know the aijditor 15 unaware. Approved by the trustees of the tharity on 8 November 2023 and signed on their behalf by: P Jackson- Chair & Trustee Page | 12
Derwentside Hospice Care Foundatlon Independent Audltorfs Report to the Members of Derwentslde H05plce Care Found?tlon Opinion We have audited the financial statements of Derwentside Hospice Care Foundation Limited {the 'charitable company'l for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial staternents. including significant accounting policies. The financial reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Fint7nci(Jl Reporting 5tondord opplicoble In the UK ond Republic of Irelond Iunited Klngdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fairvlew of the state of the charirable company's affairs as at 31 March 2023, and of it5 incoming resource5 and application of resources, including its incorne 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. Basls for opinion We condurted our a(Jdit in accordance with International Standard5 on Auditing IUKI11SA5 IUKII and applicable law. Our responsibilities under those standards are further described in the auditor respon5ibillties for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirement5 that are relevant to our audit of the financial statement5 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 audlt evldence we have obtained is sufficient and appropriate to provide a basi5 for our opinion. Conclusions relating to golng concern In auditing the Financial statements, we have concluded that the trustees, use of the going concern ba515 of accountin8 in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertaintie5 relating to events or conditions that, individually or collectively. may cast $18nificant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsiblllties and the responslbllities of the trustee5 With respect to going concern are described in the relevant sections of th15 report. Other information The other information comprises the information included in the trustees, report, other than the financial statements and our auditor's report thereon. The tru5tee5 are responsible for the other information. Our opinion on the financlal 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 a55urance conclusion thereon. Our responsibility is to read the other Page | 13
Derwentside Hospice Care Foundation Independent Audltorfs Report to the members of Derwentside Hospice Care Foundation information and, in doing so, consider whether the other information is materially inconsistent with the finarbcial statements or our knowledge obtained In the course of the audit or otherwise appears to be materially misstated. If we Identify such material inconsistencie5 or apparent material misstaternents, we are required to determine whether thi5 gives rise to a material mi55tatement 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. Opinion5 on other matters prescribed bythe Companies Act 2006 In our oplnion, based on the work undertaken in the course of the audit: the information given in the trustees, report, whlch includes the Strategic report and the director5, report prepared for the purp05e5 of company law, for the financlal year for which the financial statement5 are prepared is conslstent with the financial statements,. and the strategic report and the directors, report included within the trustees, report have been prepared in accordance with applicable legal requirernentS. Matter5 on which we are required to report by exception In the Ilght of the knowledge and under5tandin8 of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors. report included within the trustees, report. We have nothing to report In respett of the following matters In relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visrted by us- or the financial statement5 are not in agreement with the accounting records and returns.. or certain disclosure5 of tru5tee5' remuneratiori specified by law are not made; or we have not received all the Information and explanatlons we requlre for our audit: or the trustees were not entitled to prepare the financial statement5 in accordance with the small companies, regime and take advantage of the small componies, exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully In the trustees, responslblllties statement the trustees Iwho are also the directors of the charitable company for the PUFposes of company lawl are responsible for the preparation of the financial statements and for bein8 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. Pa&e114
Derwentside H05pice Care Foundation Independent Audito5 Report to the members of Denventside Hospice Care Foundatlon In preparin8the financial statements, the trustee5 are responsible for assessingthe charit3ble company's ability to continue as a goin8 concern, disclosin& a5 applicable. matters related to going concern and usin6 the going concern basis of accountin8 unle55 the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that Includes our opinion. Reasonable assurance is a high level of a55urance. but 15 not a guarantee that an audit condLrcted in accordance with ISAS IUKI will always detect 3 material misstatement when it exists. Mi55tatements can arise from fraud or error and are considered material If, individually or in the aggregate, they could reasonably be expected to influence the eEonomlc 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 procedure5 in line with our responsibilitie5, Dutlined above, to detect material misstatement5 in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. We obtained an understsnding of the legal and regulatory framework applicable to both the charitable company itself and the industry In which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and throuEh discussion with the tru5tee5 and other management. The most significant were identified as the Charities Act 2011, the Companies Act 2006. UK GAAP (FRS 1021, the Care Quality CDmrnis5ion and Health and Safety le8islation. We considered the extent of compliance with those law5 and regulatlons as part of our procedure5 on the related financial statements. Our audit procedures included: making inguiries of trustees and management 35 to whether they con5iderthere to be any known or suspected instances of fraud, or non-compliance with laws and regulations. Asse55ing the matters identified on the Charitys risk register. Reviewing the minute5 of meeting5 of those charged with governance. Assessing the risk of management override of controls. including through testing journal entries and other adjustment5 for appropriatene5S. Challenging assumptions and judgements made by management in their significant accounting estimates. A fijrther description of our responsibilities is availableon the FRC's website at: htt www.frc.or auditors audit-a5surance auditor-s-res on5ibilities-for-the- audit-of-the-fi descri tion-of-the-auditor%E2%80%995-res onsibilities-for Thi5 description forms part of our auditorfs report. Pa6e | 15
Derwentside Hospice Care Foundation
Independent Auditor's Report to the members of Derwentside Hospice Care Foundation
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Craig Henderson (Senior Statutory Auditor) For and on behalf of Haines Watts North East Audit LLP
17 Queens Lane Newcastle upon Tyne NEl lRN 14 November 2023
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Derwentslde Hospice Care Foundation Statement of Flnancial Activities for year-ended 31 March 2023 Ilncluding Income & Expenditure Account and Statement of Totsl Recognlsed Galns and Losses) Ufirestikted funds Ae5trlaÈd luftds Total 2023 Totsl 2021 Nate Incorne and Endowments: Donatlons and lega£ie5 Charitable Activitie5 Other trading activittes Unrealised gains on Investmènt Tot31 Income Expendituiè.. Raising funds Choritable actlvilles Total Expenoiture Net IntornÈ Transfer between fund5 368,791 569,102 431,166 26,117 1.395.176 42,375 411,166 569.102 431,166 26,117 1,437.551 351,000 544.588 348,271 42J75 1.243.859 1279,8501 1938,4901 IL218.3401 176.836 1279,8501 157,3961 I99585} IS7.3961 11,275.7361 11S.QZII 161.815 101 115.0211 1224,0401 1962,327 11,186.3671 57.492 176,836 161A15 57.492 Reconciliation of funds Total funds brought forward Tolal funds carried for4¥ard 2.592.339 1.769,175 1,518,450 1,503.4Z9 4,110.789 4,272,604 4.053.297 4,110,789 22 All of the Charity's activlties derive from CDn¢inying operatlD115 duTirbg ihe above two periods ènd Includes all recognised gain5 and1055e5. The funds breakdown for 2023 Is shown In note 22. Compurntlve ptriod Uniestrlcted lunds Resirlcted funds Total 202Z Nok• Income and Endowment5'. Donation5 and legacies Charitable Aciivilies Othe¥ tradin8 activities Investment income Total Income 261,937 544,588 348,271 89.063 351,000 544.S88 348.271 1,154.796 89.063 1.243.859 Expendilure.. Raising funds ChaTiiable activltlE5 Total Expenditure Net Income Transfer between fund5 1224.0401 1874,3101 11,098,350) 56.4466 32.075 8B.521 1224,0401 1962,327) 1¥186,3671 57,492 18B,0171 165.9791 1.046 132.0751 131.0291 57,492 Reconciliatlon of funds Toral funds brought forward Total funds carried Icrward 2,503.818 2,592,339 1.549,479 1.515,450 4.053,297 4,110,789 22 Page117
Denventside Hospice Care Foundatlon Balance Sheet for the year-ended 31 March 2023 2023 2L12Z 14ote Flxed assots Tangible assets vestments in subsldiaTles 3.196.557 3,282,678 14 3.196.558 3,282,679 Ctsrrent a55ets Investments Oebtofs Cash at bank and In hand 15 16 626.117 194,752 307.366 1.128,235 1511891 1.076,046 135,057 747,957 883,D14 154,9041 828,110 Credltors.. Amounts falTrlng due wlthln one year Net current assets 17 Net a55ets 4,272,604 4.110.789 Funds ofthe tharlty: Restricted fund5 I03.429 1,SJ8NSO Unre51rlcted income funds De5i8naied Reserve UnrE5trictpd Reserve Total funds 300,000 2N69,175 4,272,604 205,OQO 2.387?39 4.110,789 12 The financial statements on pa8e$ 16 to 31 were approved by the trustee5. and authorised for issue on 8 November 2023, and signed on their beholl bv P Jackson- Chair & Trustee Page | 18
Derwentside Hospice Care Foundation Statement of Cash Flows for the year-ended 31 March 2023 2023 202Z Cash Ilows from operatln8 a¢tivltles Net cash income Adjustments to £ash flows Irom non-ca5h Items tJepTeciation Oisposal of fixed asset Chan8e in lair value of investments 161,81S 57.492 108.077 111.471 716 13 126.1171 243.775 169.679 Worklng capltal adJustments IlncreaselldÈcrea5e in inventory Iincreasel/decrease in debturs Ioecrea5el in creditor5 Increa5e/ldecreasel in deferred income Net cash flow5 frum optratlng artlvltle5 C85h flows from Investing activitle5 Purchase of tangiblE fixed assets Disposal of fixed assets Purchase of Investmepts Net cash flows Irom investlng activitle5 Cash flows from financin8 artlvltles Interest payable and 5ifflilar charBe5 Net Increase In ¢ash and cèsh Equlvaltnts 1,734 110,0431 122,9291 18881 137,553 16 17 17 159,6951 13.rJ471 332 181,365 13 121.9561 112,4161 1600.0001 1621.9561 112,4161 1440.5911 125.137 Openlng cash and c35h equivalents at l Aprll Cash and cash equlv•lents at 31 Marth 747.957 307,366 622,820 747,957 23 AR of the cash flows are derived from ¢ontinuing operatiorb5 durin8 the above two periods. Page | 19
Derwentside Hosplce Care Foundatlon Notes to the Financial Statement5 for the year-ended 31 March 20Z3 Charity Statu5 The Charity is lilted by guafaniee, incorporated in England and Wales, and consequently does not have sha iaplial. Each of the Trustees is liable to contrlbute an amount not exceedlng EIO towards the assets of ihe Charity in the event of liquidation. The address of Its re8lStered office is Willow 8urn Hospice. Hawden 8ank. Lanchester. Durham. DH7 OQS Accountln8 Polirl•s Summary 0151gnlfltant atcountlng poll¢les and keyaccountlnE e5tlm3tes The prlnclpal accounting policies #pplied in the preparation of these financial statements are set out below. These pollcies have been Consistently applied to all the years presented, unless othetwise stated. statement ofcompllance The financial sratements have been prepared in accordan with Accountin8 and Reporting by Charltie5'. Statement of Recommended Practice applicable to charities preparin8 their account5 In accordance wlth the Financial Reporting standard applicable the UK and Republlc of Ireland IFRS 1021 (effective l January 20191- (Charitie5 SORP IFRS 10211, the Flnancial RepDrting StaThdard applicable in the VK and Republic of Ireland IF 1021. They also comply wilh the Companies Act 2(K)6 and Charities Act 2011. 38sls of preparatlon Oerwentside H05pice Care Foundation meets the definition of a publlc benefit entlry under FRS IOZ. Assets and liabilitles are Initlally recognlsed at h15Eorical cost or transaction value unless oiherwi5e stated In the relevant accountlnB pollcy notes. The presentation currency of the chafltable company Is 5terlln& Golng roncèrn The Charity meets its day-to-day worktng capital requirements ihiough cash generated from operations. The Charity's forecasis and projpctlgn5 for the next twelve months show that the Charity should be able to contiThve irb operational existence for that period, taklng into account posslble changes in their performance. Havlng consldered the ¢yrrent cash forecasts of thè Charlty the Trustees have a reasonable expeciation that the company has adequaie re50ur£es tD continue in operailonal existence for a period of at least 12 months frDrn the date of signing tho5E financial 51a¢ements. The Charity therefofe eonbnues to adopt thè 8oing concern basis in preparing its financial statements. Pa8e | 20
Depentside Hospice Care Foundation Note5 to the Financial Statements for the year-ended 31 March 2023 Icontinued} Accounting PDlicles Icontlnuedl Estimutlon uncertointy uftdiudgements The preparatlon of the financial statement5 requires mana8Ernent to rnakejud8ernents, e51imates and a5SUrnPtiDn5 that affect the amounts reponed. These estimates and judgements Bre continually reviewed and are based on experience and other factors. including expectations of luture event5 that are belseved to be reasonable ursder the circumstances. Thejudgements (apart from those involving e5timationsl that management ha5 made in the piocess of applying the entitV'5 accounting policles and thai have the most SiBnifJcant effect un the amounts iecognlsed in the financial Statements are as follows.. Asse55ing indicators of impairment- In assessin8 whether there have been any indicators OF Impalment of assets, the trusEe25 hove considered both external and Internal sources of information such as market conditions and experience of reroverability. Whilst the property remains in the financial statements at its written down historic cost 150me É3.17ml the trv5tees recognise that this 15 on the basi5 ofjustifying ils value in use, whSth 15 likely to exceed the vet recDverèble valup in the event that the Charity was not a 80ing concern ond needed to sell the property. Accounting estimates and a55vmptions are made concerning the future and, by their natu. will rarely equal the related actual outcome. The key as5UrnPtions and othersDurces of estimation uncertainty that have a significant risk of causlng a material adjustrnent to the cairylng amount ol assets and liabllities wlthin ihe next finantial year are as folltsws.. DeprlatIon Is prolected to write off the cost of an asset, le5S Its iesidual value, over its estlmaied useful econornic life. Rates used to project useful econom5c Ilfe are detailed In the depreclatlon accounting pollry. ItKgme ondendowments All In£orne is reco8nised once the Charity has enritlement to the income, it 15 probable that the income will be recèived and the arnount Df the income receivable c3n be measured reliably. Donotions ondlegocies Donations are lècognised when the Charity has been notified In writing Df both the amount and settlLNnent date. I the event thai a dunation is subject to conditions that require a level of performance by the Charity belore the Charity Ts entitled to the funds. the income 15 deferred and nDi recogrni5ed until either those condltion5 are lully met, or the lulfllment of those conditlons Iswhttllywirhln theionErol of Ehecharltyand it Is probable that theseiondilions will be fulfilled in the Teporting period. Legacy Blfts are reccenlsed on a case-by-case basls followin8 the grant of probate when the administratorlexecutor lor the estate has communiiated In writbng both rhe amount and settlement date. In the event that the gift is in the form of an asset orher than cash or a financlal a5sel traded on a reco8Thised Stock exchange, reco8nÈtion is 5ublecr to the value of the gift being rellably measurable v4ith a de6ree of reasonable accuracy and the title to the a55et having been transferred to the Charitv. Gronts receivabl¢ Grants are recoBni5ed when the Chariryha5 an entltlemenl to the funds and anycondition5 linked to the grants have been met. Where performance conditions are attached to the Erant and are yet to be rnet. the incorne is recognised 35 3 liability included on the balance Sheet a5 deferred income to be released. Page121
Derwentside H05pice Care Foundation Notes to the Finanaal Statements for the year-ended 31 March 20231continuedl Attountin8 pollcles Icontinuedl DeAerredincome Deferred income represenis amounts réceived lorfuture perbods and 15 released to in¢omlng resources In the pertad whld), it ha5 been recelved. Such incornÈ is only deferred when.. the donor specifies thai the grant or donation must only be used in future accouniln8 periods,- or the donor has imposed performance conditions which must be met before rhe Chariry ha5 unconditional ntitlement. Expgndlture All expenditure 15 recoenised once there Is a legal or constructive obligation io that expenditure, It IS Probable settlement Is requlred and the amount can be measured reliably. All costs are allocated to ihe applicable expendlture headin8 that aggregate sirnilar costs to that cate80ry. Where c05t5 cannot be direttly attrlbuted to partltular headin8s they have been allocated on a basis consistent with the use of re50UTces, with centr31 staff cost5 allocated on the basi5 01 time spent, and deprpciatlDn charges allDCatEd on the portion of the asset's lJ5e. Other support costs are allocated based on the spread of staff costs. R(•lslngfvnds These are costs tncurred In attractin8 voluntary Incorne, the mafia8efflent of investrnents and those incurred in trading aclivlties that ra5se funds. Choritablff uitiviti*s Charitable expenditure comprises those costs incurred by the Charity in the dellvery of Its actlvlties and SeiCe5 for lis beneficlarie5. It includes both costs that can be allocated directly to Such activrtSes and ihose costs of an Indirect nature nEce55ary to 5UPPOrt them. 5upportcosts Support costs are those function5 that asslst the work of the Charity but do not directly undertake charltable 3Ctivities. Support Costs include back oFficÈ COSis, finaThce, per50nnèl. payroll and goverxancE C05t5 which support the Charity's activities. These costs, which have not been diiectly apportioned, have been allocated between cost of raising funds and expenditure on charitable atti¥ltle5. The bases on which support costs have been allocaied are set out irtr the relevant note to the financial 5tatement5. Toxatlon The Charlty is considered to pasg the tesis Set out In Pafagraph I Schedule G OF Ihe Finance Acl 2010 and therefore it meets the definltlon of a charttable Company for UK corporation tax PLtrposes. Accordingly, the Charity is potentially exempi from taxation in respeciofincome or capital gains received within cate8ories covered by Chapter 3 Part 11 of the Corporation Tax Att 2010 or Section 356 of the Taxation of Chargeable Gain5 Act 1992, to the extent that such income or gains are applied exclusivety to charitable Pufposes. T•ngiblelixed ossets Indlvidual fixed asseis costlng £500 or more are initialty recorded at cos¢. Page122
Derwentside Hosplce Care Foundation Notes to the Flnancial Statements for the year-ended 31 March 20231contlnued) A¢¢ountln8 polldes l¢ontinvedl Depreclatlon ond amortlsatlDn DeprÈ¢iation is provided on tan8ible fixed assets in order to wrlte off the t05t or valuation, less any estlmated residual value, over their expected useful economic Ilfe as follows: Asset class Freehold land & buildin8$ Computerequipment Flxiures, rttin&S and equipment Inon-medicall Flxture5, flttlng5 and equlpment Imedicall Depreciation method and rate 2% strai8ht line 50% strai8ht line ZO% straight Ilne 33% straight Ilne A fttll year's depreclation is char8ed In ihe year arb asset Is purchased. Tr#de debtors Trade debiors are amounts due frorn customws for merchandlse sold or services performed In Ehe ordlnary course ol business. Trade debtors are recognised initiall¥ at the tran5act40n price. They are subsequenY measured at amortised cost Using the effective interest rnethod, le55 provision for impairment. A provision for the impairment of trade debtors 15 e5tabllshed when ihere is objective evidence that the Charity will not be able to collecl all amcunts due according to the orlglnal terms of thè receivables. Cash ond coshequivolents Cash and cash equivalenis comprise tash on hand arnd call deposlls, and other short.iemi highly liquid inve5tment5 that are readily Convertible to a known amouTht of cash and are subject to an insignificant risk oFchan8e in value. Twdecredltors Trade credlior5 are tsbligaiion5 to pay for goods or ServIS that have been acquired in the ardinary Course ol buneSS froffl suppliers. Ac£ount5 payable arè classified as Cltrrent liabilities if the Charity does not have an unconditional right. at the end ol the reporting period, to defer 5ettlemeTht of rhe Creditor for ar least twelve months after Ihe reporting date. 11 there Is an unconditional right to defer settlement for aE least e1ve months aftef the reportlng date. they are presented a5 non-Eurrent liabblities. Trade creditors are recogn15ed initially at the transactlon price and subsequently measured at amortised cost U51ng the effective interest method. FundstnKture Unrestricted incorne funds are 8eneral funds that are available for use at the Truste25' discretion in Furtherance of the obje¢tives of the Charitv. Desl8nated lund5 are unrestrlcted fund5 set aside for spetific purposes at th2 dlscretion of the Trusiees. Resrricled income are thi%e donated for use ifb a particular area or for speEific purposes. the use of which is restricted to that area or purpose. Pen5ion5 ond Dtherpost.retiremeRt obligotions All eligible employees are automatically enrolled Inio a workplace penslon scheme provlded by DerwentsidÈ Hospice Care Foundation. 5orne clinical stafl are member5 Df the NHS penslon scheme. cOntrtIOnS are charged to the income and expendlture account as they become payable. Page | 23
Derwentslde H05pice Care Foundation Notes to the Financial 5tatement5 for the year-ended 31 March 20231contlnued) Ac¢ountln8 pollcles lcontlnuedl Investments Investrnents in 5ubsidiarles and as50clates ale measured at cost lÈss Impairment. Income frnrn donztlons and legacies UnFestrfrtEd lunds General fle51rirted funds Total Total 2025 2022 Donations le8acles Gift Aid re¢lairned Grant5 Regular giving and capital donations Government Grants- QFR5 Kickstart Scheme 56.152 239,39G 19.132 41,400 56.IS2 235.396 19.13Z 59.919 58091 108,120 21,375 139.677 18.519 12,711 IZ.711 113B9 548 23,856 42,375 23,8S6 411.166 358,791 351.000 Included under Grants- Restricted Fund5 (see Note 22115 the funding provided by HDspice UK to sustain this part of the Healthcare sector through thè Covid-19 pandemit I£Ok'. 2022 £55kl. while normal operabons were restrlcted and curtailed. Income from charftable artlvltles IlnfQStrlcted funds General Total TDkal 2023 Eozz NHS contract Addit%onal hospice incorne 562.793 6.309 569.102 562.793 6.309 569.loz 541.738 2,850 544,588 Income from other trading actlviile5 IJn$trIrted funds GEneval Totsl Total 2023 2022 Shop incorne from Sale of donated goods and services Other event5 incorne Cafe and merchandise income Other income 222,937 123.846 77,084 7.299 431.166 222.937 123.846 77.084 7.299 431.166 181,627 87,897 52,701 26,046 348,271 In 2022, Other Incorne Includes a 5ettlernent of a bu5ine55 interruptson clalrn by our insurers to co¥Jer lost revenues nd profit l£1,081, from retail activities) because of disruption due to Storm Arwen. Page | 24
Derwentside Hospice Care Foundation Notes to the Financi315tatements for the year-ended 31 March 20231continued) 6. Unreallsed galns on Miveslments Unrestrtrted lumds General Total Total 2021 2022 Unreallsed galns on investments 26,117 26.117 A Charltles Ethical Investment Fund portfolio account was opeThed with CCLA on 19° May 2022 with E600.000 being deposited into the Invemment portfollo. The movement on the initral investment from the date of deposlt to the balance at the year-end is shown above. 7. EMpendltUTe on ralslng fvnd5 Ilnrestrltted lunds Aestficted funds Total Toial 2023 2022 Employment C051$ Other costs 175.747 104.103 279,850 175.747 IQ4,103 279.85D 109,780 114,260 Z24,040 The employrnent Costs for 2023 include the Klckstart programme employee5. 8. E¥pendlture on charltable artivitles Unresiricted lunds Restrltted lunds Total 2023 Total 2022 Charitable actlvity cost5 siaff costs loss on dbsposal of fixed a55et Support costs 258,233 499,573 3.000 54,396 261,233 553.969 209,778 557.520 716 194313 562,YZ7 180.684 938.490 180,684 995,886 57.396 Page125
Derwentside Hospice Care Foundation Notes to the Flnancial Statements for the year-ended 31 March 2023 Icontinuedl Analyst5 of sUPPOrt C05t5 Denventside Hosplce Care Foundation allocates cost5 dirert to activitie5 as far a5 Possible, then identifies ihe remaining c05t5 olits supportfunctlons. It then identifies ih05e costs whith relate 10 the governance function. Having idèntified its governance costs, the remaining support C051S together wlth the goverThancE Eosts are apportloned befvseen the key charitable activifie5 und?rtaken in the year. Refer to ihe table below lor the apportioThrnent and analysis of support and Bovernance cost5. Support Costs allocated to charitable activlties GerManCe costs other 5tipport fV5ts Total Total ZO23 2012 Staff tosts Insurance IT<ost5 Pfofessi¢nal cost5 Audit fee 135,426 22.376 24.970 9,812 135,426 22.376 24,970 9.B12 8.200 I80.684 126,303 20.476 21.258 17.076 7.200 194.313 8,200 8,200 172,484 9. Tajtatlon The charlty Is a reglstered charity and 15 therefore exemptfrom corporate taxation. Page | 26
Derwentside H05pice Care Foundation Notes to the Financial Statements for the year-ended 31 March 2023 (contiftuedl 10. Trustees, remuneratlon and expenses ND tru5tee5, nor any pefsons connected with Ehem. have received any rernuneration from the tharity durinB the vear. No tru5tee5 have received any feimbursed expenses Irorn the charlty durlng the year. IL Staff costs The aggregate payroll costs were a5 follows= Total Tothl Z023 2022 staff costs durlng th• year were Wage5 aThd salaries Social 5pcurity costs Pension costs 7B6,514 54,738 12,353 853.605 731,371 49.318 12.915 793.504 The monthly average nurnber of persons1Sncludtn8 5eniof mallement team) employed by the tharity durin8 the year wa5 as fallow5'. Total 20Z3 Management Other staff 45 34 49 38 The average number of full-time equivalent ernployee5 included above Is 1612022: 161. Derwentside Hospi Care Foundation adopt5 a Nexible workinK policy whlch enable5 employee5 to request chanBe5 to their contracted hour5 to facllilate their physlcal and mental well-being to rnalntain a good worklllfe balan. No employee reoived emolurnents ofmore than £60.01 duFing the year12022- None). The total employee benefits of the key management personnel of the charity were £15S.15212022 - É142,2211. 12. Auditorfs iernuneratlon 2023 2022 Audit fee 8.200 7.200 Page127
Derwentslde Hosplce Care Foundation Note5 to the Financial Statements for the year-ended 31 March Z023 qcontlnued) 13. Tan8lbl4 flx*d assets land and bulldlny FrnI1¥re and equlpment rotal Cost Af l Aprll 2022 AdditlOaS Disposa15 At 31 March 2023 3,591,014 525,95S 21,956 12.2801 545,631 4,116,969 21.956 12,2801 4.136.645 3,591,014 Depreciation At l April 2022 Char8e for year Dlsposals At 31 March 2023 361,891 62,739 472.400 45,338 12,2801 515,458 834,291 108.077 12,2801 940,088 424.630 Net book value At 31 MaT¢h 2023 3.166.J84 3.229,123 30,173 S3,555 3,196,557 3,282,678 At 31 March 2022 There is a time-bound, legal thar8e over 311 buildings, fixtures and fittlngs and fixed plant and mathinery that are sltuated OD or lorm pan olthe freehold land and buildin8S at Howden Bank, Lanchester, Durharn which is regisiered at the Land Registry under Title Number DU328389 ènd each and every part thereof subject to the encumbrances referr2d to in the regi51ered tille at any time: the pro¢eeds of the Sale of any parr of the Property and any other monles paid Dr payable in respect of OT In connection with the Property, the benefit of any covenanis for title given, or enrered Snio, by any predècessor title of Ehe Reciplent in Tespett of the Property, and any monle5 paid or payable in respect of those ¢ovenants,' and all rights under any Ilcence, a8reement for sale OT alreement for lease in respect of the Property Isee Note 201. 14. Investment In subsldlary 2023 2022 Other Investmènts Hazplbroo Specla15si Care Total Cost At l April 2022 Al 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 Hazelbrook Specialist Care ar Home Ltd IHSCHI is a wholly owed Subsidiary tradiw>g cornpaNy of D£entSide Hosplce Care Foundation IIOO% ordlnary sharesl. HazelbTod( Speciallst Care at Home Ltd is a dormant entity and as such, consolidared accounts have noi been prepared in 2023. Page | 28
Derwentside Hosplce Care Foundation Notes to the Financial Statements for the year-ended 31 March 2023 Icontinuedl 15. Investments 2023 AS at l April Additions Change in Market Value As at 31 Marth 600,000 16. Debtors 2021 20ZZ Trade debtofs Prepayments Accrued income VAT iecoverable 9,464 31,839 147,400 6.049 194,752 34,481 30,386 63.118 7.OY2 135,057 lfitluded In Accrued income are legacy donatirms of ÉIIS,00012022.' £nlll notified to us prior to the year end and received In April 2023. 17. Credltors 1023 zz Trade creditors Other taxatlon and soclal 5ecurtty other credltors ruals Delerred Income 9.961 14,209 5,131 21,42> 1,465 52.189 8,667 15,404 8,361 21.339 1.133 54.904 Deferred income at l Aprll 2022 Resources deferred in the period Amounts leaSed from prevlous perlod5 Deferred income at year end 1,133 1,465 11,1331 1.465 2,021 1.133 12,0211 1,133 other creditors include £497 of inter-cornpany loan. owing to Hazelbrook Speclalist Care at Home Llmired. Thls company Ss currently dormaTht, and there are no interest or repayment Conditions attached to thi5 Surn. Page | 29
DerwÈntside H05pice Care Foundatlon Notes to the Financial Statements for the year-ended 31 March 2023 Icontinued) 18. Obll8atlon5 under lease and hlre purtha5? contracts Operatln8 lease£ommitrnent5 Total future minirnum lease payments under non-cancellable operatin8 lease5 are as follows.. Land & bulldlngs other ZOZ3 2022 Within one year Between onE and fwe year5 Over five years 38.792 120,833 81,542 241,167 4.234 700 43,OZ6 121,533 81,542 246,101 45,433 138,531 108.046 292.010 4,934 19. Pen51on and other schemes Deflned contrlbutlon penslonscheme The charity operate5 a definèd contribution pension scheme. The pension cost chafge for the year represents contiibutions payable by the charity to the scheme and amounted to £12.35312022 £12,9151. Contributions included In uedltors lotalling £4,63512022.. £7,864) were payable at the end tsl the period. ZO. Contlngent Ilabllltles Included a5 a restrlcted serve Is a grant received in 2019 of £1,500,000 from Michael McArdle. Until May 2039 the charity has agreed to meet the conditlon5 of the contratt for receivlng the grant. Should any of the conditlOn5 be breached. thertr the Erant would be repayable. The repaymerbl term5 5tipulatE that thbs would be a full repayment of the grant in years one to eleven15ubject to any decrease In the overall fair value of the Helen McAYdle Win& if lowèr). with Ihe repayment then reducin8 by IO% each subsequent year up to year twenty of the agreement. Zl. Analysls of net assÈt5 between fund5 Unrestdrted lund5 Gerteral Restricted lunds Total funds DÈ55snated Tangible flxed assets Fixed asset investments Net current 3SSet5 Total net assets 1.696,557 1,500,000 3.1.557 772,617 ZI472.604 300.000 30D.000 3,429 1.503.429 1,076,046 4,272,604 Tangible fixed assets shown beiween unrEstricted and restricted funds ale subject to a legal charge as detailed ITh the fixed asset npte and note 22. Furrher details of the split between Fund5 are given in ihe conlingent liabilities note. The trustees only con5ideithe fixed assets to be restricred due iothe legal charee in placeand have therefore rapped the value allocaied as restricted at the original grant value awarded ol £1.5 million. Page | 30
Derwentside Hospice Care Foundation Notes to the Finandal Statements for the year-ended 31 March 2023 (continued) Cornpttrntlveuholysls Unvesirfrtgd lunds General Restrlrted funds rot4lfunds Desl8hated Tanglble fixed asset5 Flxed asset inv25tments Net current asset5 fotal net 355ets 1,782,678 1,500,000 3,282.678 604,660 2.387339 205,000 205,OOD 18,450 1,518A50 828.110 4,110,789 2Z. Funds Balance at l April 2022 Inrornln8 resources Aesources EApendEd Translef5 Balance at 31 March 2023 Unrestricted Funds General Gen2ral fund Contingent Liabi1Stles Development Fund Total uniestricted funds 2,387,33Y Z05,OlXI 1,395,176 IL218,3401 195.0001 2,469.175 105.0(KJ 95.000 2,769,175 95,000 1.592,339 1,395,176 11,218,340> Restrlcted funds Hospice at Home Derwent Valley AAP Other Granls less tha EIO,000 Ibll from 20221 Kickstan Scheme St Jame5 Place Mid Durham AAP Co-op Communlty Fund Grace Trust 2,135 2,687 13,628 12,1351 12,6871 113,62BI 23.856 2.500 500 4.490 123,8561 12,5001 15001 14,4901 1,000 11.0001 Hospice UK NHS INENCI & ICB 6,600 3,429 16.6001 4,429 Mlchael McArdle 1.5QO.LW)O I,SOO.t)00 Total restricted funds 1.518,450 42,375 157,3961 I,S03,429 Total lund5 4,110,789 1,437,551 11,275.7361 4,272,604 Unrestrlrted Fund5 The Centlngent Liabilitles, ReservE and the Development lund are designated lund5. The contin8eni liabilitv represents fund5 to cover adverse trading condit10ft5 and increases in the cost of living. The development fund are monies Set aside as agreed kiy thè board wSth the intention ol being Spent on plans for the future incluclin8 service development and green initiativEs to make the hospice even rnore eco-friendlv. Page | 31
Derwentslde Hosplce Care Foundatlon Notes to the Financial Statement5 for the year-ended 31 March 2023 (continued) Restrided Funds HospleÉ at Hume Fund Funds restricted for the purpose of setting up and supportin8 theg¥owth Dlthe h05plce at home service.Theservices delivered through Hazelbrook Specialist Care at Home ceased on 3 December 2017 and these rernainin8 funds have been used to cov2r the cost (yf conducting regular ielephane welfare checks after patients have tjeen dlschor8ed to their hDmes after stayin8 at our lTh-patlent unlt. Den•t Valley AAP Derwent Valley AAP funded the overheads and supporting costs IOT ihe Children's Beieavement Servi¢e for eight months of the financial year 202112022. Funds Itontlnuedl Mlchael McArdle A dor*ation was made in 2019 of El,450,000 (following an earlier Instalrnent of ESO.0001 lo fund the buildlng of the McArdle Wlng. The asset valuation Is rèduced annually by the depre£iatlDn charge incurred on the works and currenrly stands at El,380,127 Itot31 cost £1,533.4741. Followlng slgnature of grant agreements, the donation clawback remains restricted lup to a value of El.S00,000,' see Note 201 for a total period of 20 years through to 31 May 2039 when the restrictlon ends. after which time the remalnlng asset will be de-res(ricted and tran5fefred to unrestrtcled rEser¥e5. ckstart Scheme The hospice particapted in thè Kick5tart scheme. The DWP funded salarles of y04tng people EalnlnE some valuable work experien in order to better enable them to secure lon8 term employrnent and to slop clalmlng J5A. Stjames Pl/¢e & Mld Durham AAP St James Place awarded us E2,500 towards the c05t of a Childrens play cottage lor our gaiden, where children's counsEllin8 can take place outdoors to maKtmi5e children's engaBement and partitipation. Mid Ourharn AAP awarded us E500 toward5 thE cost of a mud kiichen to further encourage play and participation during coyn5elling sessions Co-op CommunSty Fund Contribution towards the 5alaTies for the running of Day Servlces. Grace Trust We were awarded £IOOO towards the salary cost of our compllmenEary thwaplst durln8 2022123. Hosplce UK Thi5 8rant was 115ed to cover the Salary tosts of our RGN. KA and Compllmentary therapist lor one day a week, provldlng 5er¥ices for ihe carers of Dur Day-patients under thelr'SuppDTting Carers In County Ourhèm. scheme. NHS INE&NCI & IC8 These funds were received in March 2023 aTrd will be used to deliver per50nalised wellbeing support for youn8 people through bereavement counselling. Page | 32
Derwentside Hospice Care Foundation Notes to the Financial Statements for the year-ended 31 March 2023 (continued) alart at IAwll 2021 Inromlng re5ource5 Resour<es expended TransfeFS Balance at 31 M•r¢h 2022 Unresirlcted funds General General fuThd Contingeni liabillties Total unrestricted funds 2316,818 187,000 503.818 1.154,796 11,098.3501 14,075 18,000 31075 Z,387,339 2QS,000 2,592A39 1.154,796 11.098,3501 Restricied funds Day Hosplce Hospice at Home Mld-Durham AAP Sir Jame5 Knott Trust Derwent Volley AAP Hospice UK Other grants le5S than ElO,000 5.205 2.135 9.896 IS.2051 Z,135 19,8961 lio.0001 18,4921 10,000 11.179 54,742 687 154,7421 31243 13.142 123,7541 18.CP)31 13,628 Michael MrArdle i.s(M).000 130,6701 30.670 1.500,000 Total Festricied fund5 1.549.479 89,063 188,0171 132,0751 1.518.fj50 Total Funds 4.053,297 1,243,859 11,186,367) 4,110.789 23, Analyslsof movement In net fund5 At l April 2022 tssh Ilow At 31 M3rch 20Z3 Olher Cash at bank and tn hand Net fund5 747,957 747,957 185,526 185,526 1626,1171 307,366 307,336 Compa11¥e onulys15 At l April 2021 Cash flow At31 Marth 2022 Other Cash at bank and in hand Net funds 622,820 622,820 125.137 125.137 747,957 747,957 Z4. A•latod partyiransartion5 Theie is nothing to report in respect of related party transactions. Page | 33