Registered number: 02211941 Charity number: 700272
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Charitable Company, its Trustees and | 1 |
| advisers | |
| Trustees' report | 2 - 9 |
| Independent auditors' report on the financial statements | 10 - 14 |
| Statement of financial activities | 15 |
| Balance sheet | 16 - 17 |
| Statement of cash flows | 18 |
| Notes to the financial statements | 19 - 38 |
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021
| Trustees | J Alderson (appointed 18 November 2020) |
|---|---|
| J Baldwin | |
| L Chapman | |
| B Cooper | |
| M Duncan | |
| J Edge (resigned 31 July 2020) | |
| R Laight | |
| M Leech | |
| D Locke | |
| M Mushen | |
| C Robertson (appointed 24 November 2020) | |
| M Webb | |
| Company registered number 02211941 Charity registered number 700272 Registered office Primrose Hospice St. Godwalds Road Bromsgrove Worcestershire B60 3BW Company secretary A Dalton Chief executive officer D Burrell Independent auditors Bishop Fleming LLP Chartered Accountants 1-3 College Yard Worcester WR1 2LB Bankers Lloyds Bank plc 112 High Street Bromsgrove Worcestershire B61 8ES Solicitors Thomas Guise Solicitors 5 Foregate Street Worcester WR1 1DB |
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The Trustees present their annual report together with the audited financial statements of the Charitable Company for the year 1 April 2020 to 31 March 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charitable Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Introduction
Based in Bromsgrove, Primrose Hospice is an established and highly respected charity. It has served the population of North East Worcestershire for over 34 years.
In 2020/21 Primrose Hospice raised £1.986 million (£1.87 million in 2019/20) which includes an annual grant from the NHS and retail grants from the government given in response to the COVID-19 pandemic. Around £0.84 million of the monies raised was achieved thanks to the generous support of local people and businesses. The money raised is spent on supporting people with life-limiting illnesses and their families during difficult and challenging times. Following a successful year in 2019, COVID-19 has dominated the activity of Primrose Hospice since early 2020.
Due to a prudent and rapid management response, Primrose Hospice acted to protect the long term viability of the organisation and ensure that Primrose Hospice continued to support the community during the COVID-19 pandemic.
Prioritising the safety of patients, clients, volunteers and staff at all times, Primrose Hospice adapted its services in light of rapidly changing guidance and continued to support the community during the COVID-19 pandemic in new and innovative ways.
Primrose Hospice is grateful for the financial support that has helped to ensure that the Hospice is a viable ongoing concern. Support has included:
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Unsolicited donations from companies and individuals to support the work of the Charity;
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The national furlough scheme which enabled us to reduce our cost base whilst maintaining opportunities for future employment; a total of 23 staff were furloughed at relevant times;
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Central Funding from Government received throughout 2020;
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Rebates for our retail units; and
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Reduced retail rental period during COVID-19 lockdown.
The prudent internal management of finances and the adaptation of the services offered to the community means that Primrose Hospice has enhanced its reputation.
Primrose Hospice has invested in services during the pandemic increasing family support and care resources to support both patients and families.
We are proud that we have played our part in supporting our community during an extremely challenging period and are determined to play our part going forward.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Objectives and activities
a. Policies and objectives
Primrose Hospice aims to work to support adults over the age of 18 living at home with cancer and other life limiting illnesses and to offer a high quality, efficient and responsive service appropriate to the needs of an individual whatever the stage of their illness.
The objectives of Primrose Hospice are:
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To provide specialised palliative care for patients with progressive, advanced cancer and other diseases from which they will not recover, across the recognised domains of physical, psychological, social and spiritual care, thereby assisting patients to achieve quality in their daily living.
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To act as a point of liaison in issues of communication, ensuring patients and their families are involved n decisions concerning their care and treatment, allowing them to make informed choices.
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To provide information to patients and families, ensuring they have full knowledge of all the support services, financial benefits and aids they may require to achieve comfortable living.
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To provide emotional support to individual members of a patient's family (adult or child between the ages of 6 and 18) by the provision of trained volunteer support workers or counselling.
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To provide the opportunity for the patient and family to discuss their chosen place of care and eventual place of death, whether at home, in hospital or a nursing home.
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To provide supportive care for cancer patients, and patients with other life limiting illnesses, at any stage of their disease by the provision of counselling, information and complementary therapies.
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In providing the above services, we are benefiting the individuals who avail themselves of these services, together with their carers and families. It should also be noted that Primrose Hospice makes no charge for any of its services.
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The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
b. Strategies for achieving objectives
Whilst the Charity developed a clear 5-year strategy in 2018, this has been revisited in 2020 to ensure we respond to the challenges and opportunities that the COVID-19 pandemic has presented.
Primrose Hospice has undertaken a clinical services review in 2020 and invested in additional nursing, medical and support posts. In addition a temporary increase in resources for family support have been allocated to help address an increase in demand for services and the complexity of supporting people safely during COVID.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Objectives and activities (CONTINUED)
c. Activities undertaken to achieve objectives
Some of our services have been maintained remotely or utilising on line methods. Our staff have continued to support people face to face and in their homes on an exception basis after a full risk assessment.
Our core services include:
Care
Day Hospice
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Attending Day Hospice regularly provides patients with the opportunity to discuss their symptoms and any concerns they may have with the nursing staff. Arrangements can be made for patients to see the Consultant in Palliative Medicine.
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Patients may also be offered complementary therapies, counselling, benefits advice and Wellbeing Services.
Outpatient clinics
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Some patients prefer not to attend the Day Hospice, but they can maintain regular professional contact with the Hospice by attending the Clinical Nurse Specialist Outpatient Clinic. The nurses are able to provide support, information, symptom management and refer them to other services within Primrose or externally.
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Medical clinics are held at the Hospice as required by the Consultant in Palliative Medicine.
Physiotherapy and Occupational Therapy
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The Occupational Therapist offers advice on lifestyle management as well as education and support to both patients and their carers.
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The Physiotherapist and Therapies Assistant offer exercise groups within the Day Hospice and education groups to include breathlessness, fatigue and sleep. In addition, they visit patients in their home and provide equipment and advice to support daily activities.
Wellbeing
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The Wellbeing service is designed for people with a life limiting illness or their family and carers to help them manage and maintain their quality of life.
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Wellbeing activities cover areas of physical, emotional, personal and social support.
Family Support
Adult groups currently on offer from Primrose Family Support
- A safe environment where people can talk together, share experiences and express emotions.
Bereavement Group
- The Bereavement Group is for anyone who has experienced a recent loss of a spouse, or partner.
Week2Week Group
- After attending the Bereavement Group for 6 months, clients can move on to the Week2Week Group.
STEPs
- STEPs is a bereavement group for younger people. It is about taking the initial first steps for ‘moving on’.
SWAN
- This group is open to anyone that is bereaved of a significant other, i.e. sister, brother, close family member but not a husband or a wife.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Objectives and activities (CONTINUED)
Support Groups for Patients and their families
Men’s Group
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An informal support group for male service users with a life threatening illness.
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It offers an opportunity to be able to talk about whatever they choose and spend time with others who understand what they may be going through.
Relaxation Group
- The relaxation group is run weekly by one of our volunteers.
Children’s Groups
Team Trevor
- Supports children and young people from the age of 7 to 12, when they have a loved one who has a life-limiting illness.
Water bugs and Dragonflies
- Closed group for children and their surviving parent to attend 7 structured sessions over a 14 week period.
Achievements and performance
a. Key performance indicators
Primrose Hospice’s priority has continued to provide care for those with life limiting illness. Primrose Hospice has adapted services during COVID to provide safe remote support where possible, supplemented by face to face and occasional group work following a full COVID risk assessment.
Primrose Hospice’s challenge continues to be to raise the funds to respond to the increase in need.
Primrose Hospice wanted to increase the levels of cash reserves so the Hospice could ensure that vital services would be maintained throughout any difficult period. Reserves were successfully increased from 10.5 months of operating costs in April 2020 to 12.8 months of operating costs in March 2021.
b. Review of activities
Primrose Hospice provides support to patients with life limiting illnesses and their families, providing them with the care and support they require during difficult times.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Achievements and performance (CONTINUED)
c. Investment policy and performance
There are no restrictions on the powers of the Trustees to invest the funds of Primrose Hospice. The current policy of the Trustees is to have regard to income requirements and any risks which have been identified and to retain any such funds as are required in short term bank deposit accounts. Primrose Hospice seeks to produce the best financial return within an acceptable level of risk. The investment objective for the short term cash reserves is to preserve the capital value with a minimum level of risk. Assets should be readily available, within 35 days, to meet unanticipated cash flow requirements.
The Trustees have reviewed the reserves of the charity, including the nature of the income and expenditure streams, the need to match variable income and fixed commitments and the nature of the reserves.
An investment policy was reviewed and updated at the Finance and Income Generation Committee and Board in 2020.
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future. This has been reviewed and the Trustees are confident there are sufficient reserves to ensure the Hospice remains a going concern beyond March 2023. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies (Note 2.2).
b. Reserves policy
The Trustees actively review the major risks which the Charity faces and believe that maintaining reserves at a level to cover 6 months operating costs, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The organisation aspires to have 6 months’ reserves at any time (currently 12.8 months). The Trustees have also examined other operational and business risks faced by the Charity, have produced a Risk Register and confirm that they have established systems to mitigate the significant risks.
Whilst reserves are greater than the Charity aspires to in ‘normal’ times, the Trustees are aware that this has been achieved during the pandemic and is largely due to additional temporary financial support and temporarily decreased cost base (e.g. furlough). As there are risks around future income levels, Trustees have accepted maintaining additional reserves as a prudent buffer in a time of great uncertainty around future income for the Charity.
c. Financial review
The Statement of Financial Activities (SOFA) shows restricted and unrestricted reserves at £1,482,680 and £2,036,932, respectively. In 2019/20 they were £1,534,828 and £1,503,111 respectively.
Total incoming resources amounted to £1,986,498 (2020: £1,868,059), £812,813 of this was from statutory sources (£268,260 in 2020). For the other 40.9% (85.6% in 2020), Primrose Hospice remains heavily dependent on the generosity of our local community to support our retail shops, joint lottery and fundraising activities.
There was a surplus of £481,673 in 2021 (in 2020 the figure was £265,197).
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
d. Principal funding
National Health Service Grants
Grant income from the NHS was £400,729, 20.2% of the Hospice’s total funding. Primrose Hospice ensures that the limited resources are used responsibly to provide the best care and support to our community.
Worcestershire Hospices Lottery
Worcestershire Hospices Lottery, a joint venture with Acorns Children’s Hospice and St. Richard’s Hospice, generated income of £117,391 (2020: £108,249) for the Hospice.
Donations (Charitable Trusts, Fundraising & other donations)
Donations in 2021 were £473,913 compared to £586,199 in 2020 which is a decrease of 19.1%.
Legacies and In Memoriam
Legacies and In Memoriam were £336,889 compared to £274,965 in 2020 which is an increase of 22.5%.
Trading Activities
The income generated by Primrose’s 5 retail shops was £215,733 compared to £605,350 in the previous year (which included the receipt of £105,000 in retail grants awarded by the government in response to the COVID 19 pandemic).
Structure, governance and management
a. Constitution
The Primrose Hospice is registered as a charitable company limited by guarantee and was set up by a Trust deed.
The Primrose Hospice is constituted under a Trust deed and is a registered charity number 700272.
The Primrose Hospice is a charitable company limited by guarantee, incorporated on 20th January 1988, and registered as a charity on the same date.
The Primrose Hospice was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount of £1 per member.
b. Methods of appointment or election of Trustees
The directors of the company are also charity trustees for the purposes of charity law and, under the company's Articles, are known as members of the Board of Trustees. The Trustees when complete consist of at least seven and not more than twenty individuals over the age of 18, all of whom must support the Objects. Under the requirements of the Memorandum and Articles of Association, one third (or the number nearest one third) of the Trustees must retire each year, those longest in office retiring first and the choice between any of equal service being made by drawing lots. A retiring Trustee may be re appointed for a further period of 3 years at the discretion of the Trustees.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
Structure, governance and management (CONTINUED)
c. Organisational structure and decision-making policies
The Board of Trustees administers the Charity. The Board meets at least 4 times a year and is responsible for the strategic direction and policy of the Charity.
The Chief Executive Officer is appointed by the Trustees to manage the day to day operations of the Charity and attends the Board Meetings, alongside members of the Senior Leadership Team. To facilitate effective operations, the Chief Executive Officer has delegated authority for operational matters.
d. Policies adopted for the induction and training of Trustees
The Trustees have a formal induction process which covers all Primrose Hospice policies and procedures and covers the Trustee Code of Conduct, the Trustee declaration, Confidentiality agreement, Nolan 7 Principles, The Charity Commission’s publication ‘The Essential Trustee’ The Hospice UK 20 minute guide and Mandatory Training as undertaken by all volunteers.
e. Pay policy for key management personnel
Salaries are reviewed to ensure resources are used as efficiently as possible. This, along with benchmarking against similar local charities and assessing the complexity of the role, will provide a robust remuneration process.
f. Financial risk management
The Trustees have assessed the major risks to which the Charitable Company is exposed, in particular those related to the operations and finances of the Charitable Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Plans for future periods
The Trustees and Senior Management Team plan to continue to deliver services for the Charity's clients, whilst managing the impacts of COVID-19 and other economic uncertainties on the Charity.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The Trustees (who are also the directors of the Charitable Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company's transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
R Laight Trustee Date: 6th October 2021
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PRIMROSE HOSPICE LIMITED
OPINION
We have audited the financial statements of The Primrose Hospice Limited (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
OTHER INFORMATION
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PRIMROSE HOSPICE LIMITED (CONTINUED)
OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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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 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 Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
RESPONSIBILITIES OF TRUSTEES
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PRIMROSE HOSPICE LIMITED (CONTINUED)
AUDITORS' 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 Auditors' 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:
Identifying and assessing potential risks related to irregularities;
The procedures undertaken in order to identify and assess risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, are as follows:
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We have considered the nature of the industry and sector, control environment and business performance;
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We have considered the results of our enquiries of management and the Chair of the Board about their own identification and assessment of the risk of irregularities;
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For any matters identified we have obtained and reviewed the Charitable Company's documentation of their policies and procedures relating to;
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Identifying, evaluating and complying with laws and regulations whether they were aware of any instances of non-compliance;
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Detecting and responding to the risk of fraud and whether they have knowledge of actual, suspected or alleged fraud; and
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The internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations.
We have considered the matters discussed among the audit engagement team, including internal tax specialists regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
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Revenue recognition; and
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Accounting estimates.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Charitable Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities SORP (FRS 102) - Accounting and Reporting by Charities and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charitable Company's ability to operate or to avoid a material penalty. These include data protection regulations, health and safety regulations and employment legislation.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PRIMROSE HOSPICE LIMITED (CONTINUED)
Audit response to risks identified
As a result of performing the above procedures, we have identified revenue recognition and accounting estimates as key audit matters related to the potential risk of fraud. Our procedures to respond to risks identified included the following:
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Documenting and validating the control environment for income and debtors and carrying out walkthrough testing;
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Undertaking substantive sample-based testing or proof in total calculations on all material revenue streams to ensure revenue has been recognised appropriately and accurately;
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Considering manual income journals as part of our work on fraud risks documented above;
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Reviewing the financial statement disclosures and testing to supporting documentation;
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Enquiring of management concerning actual and potential litigation claims;
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Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement;
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Reading minutes of meetings of those charged with governance; and
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In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
USE OF OUR REPORT
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PRIMROSE HOSPICE LIMITED (CONTINUED)
Andrew Wood FCCA (Senior statutory auditor) for and on behalf of
Bishop Fleming LLP Chartered Accountants Statutory Auditors 1-3 College Yard Worcester WR1 2LB
Date: 7th October 2021
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021
| Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Total income Expenditure on: Raising funds 7 Charitable activities 8 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £ 835,893 406,909 333,124 618 1,576,544 499,557 543,166 1,042,723 533,821 1,503,111 533,821 2,036,932 |
Restricted funds 2021 £ 409,954 - - - 409,954 - 462,102 462,102 (52,148) 1,534,828 (52,148) 1,482,680 |
Total funds 2021 £ 1,245,847 406,909 333,124 618 1,986,498 499,557 1,005,268 1,504,825 481,673 3,037,939 481,673 3,519,612 |
Total funds 2020 £ 884,799 268,260 713,599 1,401 |
|---|---|---|---|---|
| 1,868,059 | ||||
| 629,662 973,200 |
||||
| 1,602,862 | ||||
| 265,197 | ||||
| 2,772,742 265,197 |
||||
| 3,037,939 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 19 to 38 form part of these financial statements.
Page 15
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:02211941
BALANCE SHEET AS AT 31 MARCH 2021
| Note Fixed assets Tangible assets 13 Investments 14 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Total net assets Charity funds Restricted funds 19 Unrestricted funds 19 Total funds |
133,483 1,579,618 1,713,101 (191,417) |
2021 £ 1,997,828 100 1,997,928 1,521,684 3,519,612 3,519,612 1,482,680 2,036,932 3,519,612 |
247,753 868,586 1,116,339 (150,577) |
2020 £ 2,072,077 100 |
|---|---|---|---|---|
| 2,072,177 965,762 |
||||
| 3,037,939 | ||||
| 3,037,939 | ||||
| 1,534,828 1,503,111 |
||||
| 3,037,939 |
Page 16
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE) REGISTERED NUMBER:02211941
BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on _______6th October 2021 and signed on their behalf by:
R Laight J Baldwin Trustee Trustee
The notes on pages 19 to 38 form part of these financial statements.
Page 17
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Proceeds from the sale of tangible fixed assets Net cash provided by investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 19 to 38 form part of these financial statements |
2021 £ 700,330 10,702 - 10,702 - 711,032 868,586 1,579,618 |
2020 £ 258,055 |
|---|---|---|
| 1,401 750 |
||
| 2,151 | ||
| - | ||
| 260,206 608,380 |
||
| 868,586 | ||
Page 18
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. GENERAL INFORMATION
The Primrose Hospice is a private Charitable Company limited by guarantee, incorporated in the UK and registered in England and Wales. The registered office is Primrose Hospice, St. Godwalds Road, Bromsgrove, Worcestershire, B60 3BW.
The principal activity of the Charitable Company is as disclosed in the Trustees' report, starting on page 2.
The accounts are presented in GBP and are rounded to the nearest GBP.
2. ACCOUNTING POLICIES
2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Primrose Hospice Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 GOING CONCERN
The Trustees have prepared financial projection forecasts for a period of at least 18 months following the date of approval of the financial statements. The Charitable Company has a net asset value as at 31 March 2021 of £3,519,266 (2020: £3,037,939), and has freehold property with a net book value totalling £1,971,062 (2020: £2,026,258) and cash at bank and in hand of £1,579,618 (2020: £868,524).
On this basis the financial statements have been prepared on a going concern basis. The Trustees’ assumptions and outlook considers the impact and uncertainty that the Coronavirus (COVID-19) pandemic continues to have on the Charitable Company. Updated projections have been put in place that consider a worst-case scenario in order to make sure the Charitable Company continues during these unprecedented times. This is being monitored on a weekly basis. The Trustees have also taken advantage of the COVID-19 Government assistance throughout the financial year as well as funding from other funding bodies; a number of successful grants have been secured during the year.
The financial statements do not reflect the adjustments that would be necessary should the ability of the Charitable Company to operate be jeopardised due to a material issue with the availability of its work force, the level of demand for its services or a material decrease in shop revenues or grant funding.
Page 19
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. ACCOUNTING POLICIES (continued)
2.3 INCOME
All income is recognised once the Charitable Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charitable Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charitable Company, can be reliably measured.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
2.4 EXPENDITURE
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charitable Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and noncharitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charitable Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 GOVERNMENT GRANTS
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.
2.6 INTEREST RECEIVABLE
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charitable Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Page 20
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. ACCOUNTING POLICIES (continued)
2.7 TAXATION
The Charitable Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charitable Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
2.8 TANGIBLE FIXED ASSETS AND DEPRECIATION
Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
| Freehold property | - 2-10% straight line |
|---|---|
| Motor vehicles | - 25% reducing balance |
| Fixtures and fittings | - 25% straight line |
| Office equipment | - 25% straight line |
2.9 INVESTMENTS
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
Investments in joint ventures are stated at the amount of the Charitable Company's share of net assets. The Statement of financial activities includes the Charitable Company's share of the joint ventures' net income or expenditure using the equity accounting basis. As the joint venture is a charity, the investment is presented within restricted funds.
2.10 STOCKS
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
2.11 DEBTORS
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Page 21
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. ACCOUNTING POLICIES (continued)
2.12 CASH AT BANK AND IN HAND
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.13 LIABILITIES AND PROVISIONS
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charitable Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.14 FINANCIAL INSTRUMENTS
The Charitable Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.15 PENSIONS
The Charitable Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charitable Company to the fund in respect of the year.
2.16 FUND ACCOUNTING
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charitable Company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charitable Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 22
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
3. INCOME FROM DONATIONS AND LEGACIES
| Unrestricted funds 2021 £ Donations 470,863 Legacies 284,278 Children in Need grant 28,141 Government grants - In memoriam 52,611 835,893 TOTAL 2020 784,830 |
Restricted funds 2021 £ 3,050 - - 406,904 - 409,954 99,969 |
Total funds 2021 £ 473,913 284,278 28,141 406,904 52,611 1,245,847 884,799 |
Total funds 2020 £ 586,199 191,645 23,635 - 83,320 |
|---|---|---|---|
| 884,799 | |||
4. INCOME FROM CHARITABLE ACTIVITIES
| Unrestricted funds 2021 £ CCG funding - Hospice services 400,729 Student placement income 6,180 406,909 TOTAL 2020 268,260 |
Total funds 2021 £ 400,729 6,180 406,909 268,260 |
Total funds 2020 £ 259,745 8,515 |
|---|---|---|
| 268,260 | ||
During 2020/2021 we were able to increase our level of reserves. This was due to temporary reductions in expenditure during COVID-19 pandemic and non-recurrent income from sources related to the pandemic: Job Retention Scheme (furlough), COVID-19 grants (e.g. retail), additional funding from the Clinical Commissioning Group (CCG) and treasury funding to Hospices. In addition, we benefited from significant income from legacies which again is non recurrent and largely unpredictable.
Whilst this temporary increase in income supported us to maintain and expand services whilst building reserves, it is clear that the future levels of income for an organisation that is largely self-funding from fundraising and retail is less predictable. Reserves have been allocated to additional services in Family Support and Care but we remain vigilant in our future planning until there is a clearer view on the recovery of our sustainable , recurrent income streams.
Page 23
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
5. INCOME FROM OTHER TRADING ACTIVITIES
Income from fundraising events
| Unrestricted funds 2021 £ Shop and eBay sales 141,883 Ragging income 4,932 Gift Aid income 6,526 Other income - Retail, Hospitality and Leisure grants 62,392 215,733 TOTAL 2020 605,350 Income from non charitable trading activities Unrestricted funds 2021 £ Lottery joint venture income 117,391 TOTAL 2020 108,249 6. INVESTMENT INCOME Unrestricted funds 2021 £ Investment income 618 TOTAL 2020 1,401 |
Total funds 2021 £ 141,883 4,932 6,526 - 62,392 215,733 605,350 Total funds 2021 £ 117,391 108,249 Total funds 2021 £ 618 1,401 |
Total funds 2020 £ 451,162 17,222 31,710 256 105,000 |
|---|---|---|
| 605,350 | ||
| Total funds 2020 £ 108,249 |
||
| Total funds 2020 £ 1,401 |
||
Page 24
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
7. EXPENDITURE ON RAISING FUNDS
FUNDRAISING EXPENSES
| Unrestricted funds 2021 £ Fundraising non-staff costs 27,563 Fundraising staff costs 141,785 169,348 TOTAL 2020 213,221 CHARITY SHOP EXPENSES Unrestricted funds 2021 £ Charity shop non-staff costs 136,340 Charity staff costs 193,869 Charity shop depreciation - 330,209 TOTAL 2020 416,441 |
Total funds 2021 £ 27,563 141,785 169,348 213,221 Total funds 2021 £ 136,340 193,869 - 330,209 416,441 |
Total funds 2020 £ 72,885 140,336 |
|---|---|---|
| 213,221 | ||
| Total funds 2020 £ 203,041 205,585 7,815 |
||
| 416,441 | ||
Page 25
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
Summary by fund type
| Unrestricted funds 2021 £ Operation of Hospice 543,166 TOTAL 2020 818,897 |
Restricted funds 2021 £ 462,102 154,303 |
Total funds 2021 £ 1,005,268 973,200 |
Total funds 2020 £ 973,200 |
|---|---|---|---|
9. ANALYSIS OF EXPENDITURE BY ACTIVITIES
| Operation of Hospice TOTAL 2020 |
Activities undertaken directly 2021 £ 696,149 697,801 |
Support costs 2021 £ 309,119 275,399 |
Total funds 2021 £ 1,005,268 973,200 |
Total funds 2020 £ 973,200 |
|---|---|---|---|---|
Page 26
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)
ANALYSIS OF DIRECT COSTS
| Staff costs Depreciation Project costs Care equipment Utilities Education and training Laundry and cleaning Patient interaction Repairs and maintenance Printing, stationery and postage Consumables Travel TOTAL 2020 |
Activities 2021 £ 471,012 74,249 3,639 712 32,988 4,400 22,351 51,896 25,114 4,083 161 5,544 696,149 697,801 |
Total funds 2021 £ 471,012 74,249 3,639 712 32,988 4,400 22,351 51,896 25,114 4,083 161 5,544 696,149 697,801 |
Total funds 2020 £ 466,155 64,234 3,163 312 18,339 6,327 27,911 56,774 21,196 5,510 8,101 19,779 |
|---|---|---|---|
| 697,801 | |||
Page 27
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)
ANALYSIS OF SUPPORT COSTS
| Activities 2021 £ Staff costs 216,585 Recruitment expenses 1,082 Insurance 13,799 IT consumables 25,481 Education and training 214 Telephone 7,823 Miscellaneous expenses 6,348 Consultancy fees 22,954 Audit and accountancy fees 11,520 Printing, stationery and postage 3,137 Bank charges 176 309,119 TOTAL 2020 275,399 10. AUDITORS' REMUNERATION Fees payable to the Charitable Company's auditor for the audit of the Charitable Company's annual accounts Fees payable to the Charitable Company's auditor in respect of: Preparation of the annual accounts 11. STAFF COSTS Wages and salaries Social security costs Contribution to defined contribution pension schemes |
Total funds 2021 £ 216,585 1,082 13,799 25,481 214 7,823 6,348 22,954 11,520 3,137 176 309,119 275,399 2021 £ 8,000 2,150 2021 £ 906,880 67,920 48,451 1,023,251 |
Total funds 2020 £ 217,661 1,703 10,015 15,150 2,465 717 7,102 6,328 10,825 3,286 147 |
|---|---|---|
| 275,399 | ||
| 2020 £ 7,775 2,100 |
||
| 2020 £ 911,682 67,598 50,457 |
||
| 1,029,737 |
Page 28
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
11. STAFF COSTS (CONTINUED)
The average number of persons employed by the Charitable Company during the year was as follows:
| Hospice services Fundraising Management & administration Merchandising |
2021 No. 24 6 7 12 49 |
2020 No. 27 6 7 12 |
|---|---|---|
| 52 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2021 | 2020 | ||
|---|---|---|---|
| No. | No. | ||
| In the band £60,001 | - £70,000 | 1 | 1 |
The key management personnel of the Charitable Company is represented by the roles of Chief Executive Officer, Head of Clinical Services, Head of Family Support and Chief Operating Officer. The total employee benefits of the key management personnel were £198,670 (2020: £252,751), including employer's pension and National Insurance contributions.
12. TRUSTEES' REMUNERATION AND EXPENSES
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).
During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL).
Page 29
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
13. TANGIBLE FIXED ASSETS
| COST OR VALUATION At 1 April 2020 At 31 March 2021 DEPRECIATION At 1 April 2020 Charge for the year At 31 March 2021 NET BOOK VALUE At 31 March 2021 At 31 March 2020 |
Freehold property £ 2,684,955 2,684,955 658,697 55,196 713,893 1,971,062 2,026,258 |
Motor vehicles £ 15,730 15,730 7,802 1,981 9,783 5,947 7,928 |
Fixtures and fittings £ 74,956 74,956 55,581 8,804 64,385 10,571 19,375 |
Office equipment £ 36,506 36,506 17,990 8,268 26,258 10,248 18,516 |
Total £ 2,812,147 |
|---|---|---|---|---|---|
| 2,812,147 | |||||
| 740,070 74,249 |
|||||
| 814,319 | |||||
| 1,997,828 | |||||
| 2,072,077 |
14. FIXED ASSET INVESTMENTS
| COST OR VALUATION At 1 April 2020 AT 31 MARCH 2021 NET BOOK VALUE AT 31 MARCH 2021 AT 31 MARCH 2020 |
Investment in joint ventures £ 100 |
|---|---|
| 100 | |
| 100 | |
| 100 |
Page 30
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
14. FIXED ASSET INVESTMENTS (CONTINUED)
PRINCIPAL JOINT VENTURES
The following was a joint venture of the Charitable Company:
| Name | Fair value of | Profit for |
|---|---|---|
| investment | the year | |
| £ | £ | |
| Worcestershire Hospices Lottery Limited | 100 | 116,499 |
The Charitable Company has a one third shared holding in a joint venture, Worcester Hospices Lottery Limited, which entitles the Charitable Company to a third of its distributable reserves.
15. DEBTORS
| DUE WITHIN ONE YEAR Trade debtors Amounts owed by joint venture Other debtors Prepayments and accrued income Tax recoverable |
2021 £ 475 7,782 2,179 107,931 15,116 133,483 |
2020 £ 2,070 8,359 - 229,323 8,001 |
|---|---|---|
| 247,753 |
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade creditors Other creditors Accruals and deferred income |
2021 £ 104,058 13,023 74,336 191,417 |
2020 £ 85,955 11,270 53,352 |
|---|---|---|
| 150,577 |
Page 31
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
17. FINANCIAL INSTRUMENTS
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| FINANCIAL ASSETS | ||
| Financial assets measured at fair value through income and expenditure | 1,579,618 | 868,586 |
Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand.
18. ACCRUALS AND DEFERRED INCOME
| Deferred income at 1 April 2020 Resources deferred during the year Amounts released from previous periods DEFERRED INCOME AT 31 MARCH 2021 |
2021 £ 4,428 - (4,428) - |
2020 £ 9,278 4,428 (9,278) |
|---|---|---|
| 4,428 |
Page 32
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
19. STATEMENT OF FUNDS
STATEMENT OF FUNDS - CURRENT YEAR
| UNRESTRICTED FUNDS General funds RESTRICTED FUNDS 2004 Capital Appeal 2008 Squaring the Circle Bromsgrove District Council Department of Health - 2010 grant Grand Lodge of Mark Master Masons Sensory Garden Department of Health - Garden Room Interserve Bumblehole Foods JRS Scheme NHSE Funding Other small funds TOTAL OF FUNDS |
Balance at 1 April 2020 £ 1,503,111 326,353 107,330 7,697 587,120 33,718 9,000 445,332 1,506 8,821 - - 7,951 1,534,828 3,037,939 |
Income £ 1,576,544 - - - - - - - - - 150,881 256,023 3,050 409,954 1,986,498 |
Expenditure £ (1,042,723) (9,742) (2,825) (1,982) (14,320) (823) (2,000) (10,064) (448) (3,529) (150,881) (256,023) (9,465) (462,102) (1,504,825) |
Balance at 31 March 2021 £ 2,036,932 |
|---|---|---|---|---|
| 316,611 104,505 5,715 572,800 32,895 7,000 435,268 1,058 5,292 - - 1,536 |
||||
| 1,482,680 | ||||
| 3,519,612 |
Page 33
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
19. STATEMENT OF FUNDS (CONTINUED)
The specific purposes for which the funds are to be applied are as follows:
Restricted:
2004 Capital Appeal - Funding raised by the charity for an extension to the original building and are reduced annually by an amount equivalent to the depreciation charge in respect of that building cost.
2008 Squaring the Circle - Funding received from the Department of Health supporting Dignity in Care for older people. The grant funded the construction of a covered walkway and a hexagonal spiritual room, the cost of which is depreciated annually.
Bromsgrove District Council - The funds were received to fund our new Wellbeing project, designed to support people with a life limiting illness in managing and maintaining their quality of life.
Department of Health - Garden Room - Funding received from the Department of Health to provide new accommodation space for day patients.
Grand Lodge of Mark Master Masons - Funds raised by the charity for the fixtures, fittings and equipment in the family support centre.
Morrisons Foundation - Funds were received for the provision of our Children’s and Young Persons Service, supporting children through pre and post bereavement.
Bumblehole Foods - Funds received to install new LED lights into the main Hospice building and the Coppice Centre, thus reducing ongoing costs and environmental impact.
JRS Scheme - Funds received for the purposes of furloughing certain members of staff throughout the COVID-19 crisis.
NHSE Funding - The funds were received by Hospice UK for the purposes of support at various points throughout the COVID-19 crisis.
Other small funds - A number of additional donations were received throughout the year, supporting the purchase of essential items and services, such as chairs, carpets, complementary therapy supplies, medical consumables and new carpeting for our Hospice reception area.
Page 34
THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
| 19. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR UNRESTRICTED FUNDS General funds RESTRICTED FUNDS 2004 Capital Appeal 2008 Squaring the Circle Bromsgrove District Council Bromsgrove District Council (van) Department of Health - 2010 grant Grand Lodge of Mark Master Masons Sensory Garden The Rowlands Trust Department of Health - Garden Room Interserve Morrisons Foundation Bumblehole Foods Edward Cadbury Charitable Trust Edward Gosling Foundation Crem Metals Garfield Weston JRS Scheme NHSE Funding Other small funds TOTAL OF FUNDS |
Balance at 1 April 2019 £ 1,183,580 336,095 110,155 10,996 7,620 601,440 34,541 11,000 4,559 455,396 1,954 1,141 1,577 5,000 - - - - - 7,688 1,589,162 2,772,742 |
Income £ 1,768,090 - - 7,958 - - - - 4,114 - - 17,654 - 5,000 1,659 8,000 15,000 9,468 4,265 26,851 99,969 99,969 |
Expenditure £ (1,448,559) (9,742) (2,825) (11,257) (7,620) (14,320) (823) (2,000) (8,673) (10,064) (448) (18,795) 7,244 (10,000) (1,659) (8,000) (15,000) (9,468) (4,265) (26,588) (154,303) (1,602,862) |
Balance at 31 March 2020 £ 1,503,111 |
|---|---|---|---|---|
| 326,353 107,330 7,697 - 587,120 33,718 9,000 - 445,332 1,506 - 8,821 - - - - - - 7,951 |
||||
| 1,534,828 | ||||
| 3,037,939 |
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
20. SUMMARY OF FUNDS
SUMMARY OF FUNDS - CURRENT YEAR
| General funds Restricted funds SUMMARY OF FUNDS - PRIOR YEAR General funds Restricted funds |
Balance at 1 April 2020 £ 1,503,111 1,534,828 3,037,939 Balance at 1 April 2019 £ 1,183,580 1,589,162 2,772,742 |
Income £ 1,576,544 409,954 1,986,498 Income £ 1,768,090 99,969 1,868,059 |
Expenditure £ (1,042,723) (462,102) (1,504,825) Expenditure £ (1,448,559) (154,303) (1,602,862) |
Balance at 31 March 2021 £ 2,036,932 1,482,680 |
|---|---|---|---|---|
| 3,519,612 | ||||
| Balance at 31 March 2020 £ 1,503,111 1,534,828 |
||||
| 3,037,939 |
21. ANALYSIS OF NET ASSETS BETWEEN FUNDS
ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR
| Unrestricted funds 2021 £ Tangible fixed assets 527,691 Fixed asset investments 100 Current assets 1,700,558 Creditors due within one year (191,417) TOTAL 2,036,932 |
Restricted funds 2021 £ 1,470,137 - 12,543 - 1,482,680 |
Total funds 2021 £ 1,997,828 100 1,713,101 (191,417) |
|---|---|---|
| 3,519,612 |
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
21. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED) ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
| Unrestricted funds 2020 £ Tangible fixed assets 556,052 Fixed asset investments 100 Current assets 1,097,536 Creditors due within one year (150,577) TOTAL 1,503,111 22. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW ACTIVITIES Net income for the year (as per Statement of Financial Activities) ADJUSTMENTS FOR: Depreciation charges Dividends, interests and rents from investments (Increase)/decrease in debtors Increase in creditors Profit on disposal of fixed assets NET CASH PROVIDED BY OPERATING ACTIVITIES 23. ANALYSIS OF CASH AND CASH EQUIVALENTS Cash in hand TOTAL CASH AND CASH EQUIVALENTS |
Restricted funds 2020 Total funds 2020 £ £ 1,516,025 2,072,077 - 100 18,803 1,116,339 - (150,577) 1,534,828 3,037,939 FROM OPERATING 2021 2020 £ £ 481,673 265,197 74,249 74,246 (10,702) (1,401) 114,270 (83,583) 40,840 4,157 - (561) 700,330 258,055 2021 2020 £ £ 1,579,618 868,586 1,579,618 868,586 |
|---|---|
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THE PRIMROSE HOSPICE LIMITED (A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
24. ANALYSIS OF CHANGES IN NET DEBT
| At 1 April | At 31 March | ||
|---|---|---|---|
| 2020 | Cash flows | 2021 | |
| £ | £ | £ | |
| Cash at bank and in hand | 868,586 | 711,032 | 1,579,618 |
25. PENSION COMMITMENTS
The Charitable Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the Charitable Company to the fund and amounted to £50,630 (2020: £50,457). Contributions totalling £6,340 (2020: £5,135) were payable to the fund at the balance sheet date.
26. OPERATING LEASE COMMITMENTS
At 31 March 2021 the Charitable Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2021 £ 67,284 132,738 54,083 254,105 |
2020 £ 85,034 170,344 54,083 |
|---|---|---|
| 309,461 |
27. RELATED PARTY TRANSACTIONS
During the year the Charity generated income of £116,499 (2020: £108,249) via a joint venture enterprise, Worcestershire Hospices Lottery Limited, which has a Trustee in common, M Leech. The amount due to the Charity at the year end amounted to £7,782 (2020: £8,421). During the year, expenditure of £NIL (2020: £268) was also incurred with this entity. At the year end, a balance of £62 was owed to this entity (2020: £NIL).
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