Registered number: 02234222 Charity number: 700356
## **THE ROTHERHAM HOSPICE TRUST**
**(A company limited by guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## CONTENTS
||Page|
|---|---|
|**Reference and administrative details of the charitable company, its Trustees and advisers**|1 - 2|
|**Trustees' report**|3 - 20|
|**Independent auditor's report on the financial statements**|21 - 24|
|**Statement of financial activities**|25|
|**Balance sheet**|26|
|**Statement of cash flows**|27|
|**Notes to the financial statements**|28 - 50|
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS _FOR THE YEAR ENDED 31 MARCH 2023_
|**Trustees**|Bruce Warner,Chair from 11 October 2023|
|---|---|
||William Patterson,Chair to 11 October 2023(resigned 11 October 2023)|
||Dr Richard F Daly,Joint Vice Chair|
||Jacqueline Saunders,Joint Vice Chair|
||Nicholas Brushett|
||Paula Carter(formerlyWood)|
||Julie Gill|
||Steven Lilley|
||KerryMcGrath(resigned 17 September 2023)|
||AmyStephenson(appointed 5 October 2022,resigned 14 August 2023)|
||James Locking (appointed 7 June 2023)|
||KayChapman(resigned 7 November 2022)|
||Jane Gillings(resigned 9 December 2022)|
||Robert Jackson(resigned 23 March 2023)|
||Sarah Valentine-Bull(resigned 23 May2023)|
|**Company registered**
**number**
02234222
**Charity registered number**
700356
**Registered office**
Rotherham Hospice
Broom Road
Rotherham
S60 2SW
**Patron**
The Countess of Scarbrough
**Vice President**
Alan Hartley
**Executive Team**
Sally Napper (Chief Executive) (retired 7 June 2023)
Mat Cottle-Shaw (Chief Executive) (appointed 3 July 2023)
Tracey Craggs (Director of Clinical Services) (appointed 20 June 2022)
Andrew Pepper (Director of Finance)
Tamsin Dunkerley (Director of Human Resources)
Stephen King (Director of Income Generation & Communications)
**Independent auditor**
BHP LLP
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD||
Page 1
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
|**Bankers**|HSBC|
|---|---|
||35 College Street|
||Rotherham|
||S65 1AF|
||Co-Operative Bank|
||2nd Floor|
||1 Balloon Street|
||Manchester|
||M60 4EP|
|**Solicitors**|Chadwick Lawrence|
||13 Railway Street|
||Huddersfield|
||HD1 1JS|
|**Investment Managers**|Charles Stanley and Co Ltd|
||7 Park Row|
||Leeds|
||LS1 5HD|
Page 2
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT
_FOR THE YEAR ENDED 31 MARCH 2023_
The Trustees (who are also Directors of the charity for the purposes of the Companies Act) present their report and the audited financial statements of the charity for the year ended 31 March 2023. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” FRS102 in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011 and 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 published October 2019.
## _**OUR PURPOSE AND ACTIVITIES**_
## **Purpose**
The charity’s objects as set out in the revised memorandum and articles which were adopted on 24th August 2015 are to promote the relief of sickness by such charitable means as the Association shall from time to time think fit, and in particular (but without prejudice to the generality of such objects):
- A. To establish, maintain and operate Hospices, residential nursing homes and clinics in England or Wales for the reception and care of persons of either sex who are suffering from any illness, disability, disease or other infirmity whether physical or mental and by providing medical or other treatment and attention for any such persons as aforesaid either in their own homes, their current place of care or at any institution of the Association
- B. To conduct or promote research into the care and treatment of persons suffering from any such illness, disability, disease or infirmity as aforesaid and particularly into the care and treatment of persons suffering from any terminal illness and to disseminate the results thereof to the public
- C. To promote or assist in the teaching or training of doctors, nurses, physiotherapists and other persons engaged in any branch of medicine, surgery, nursing or allied services and in the teaching or training of students in any branch of medicine, surgery, nursing or allied services.
- D. To provide or assist the provision of spiritual support and guidance for any person’s resident (either as patients or otherwise) or working in any such home or homes as aforesaid.
- E. The aim of the charity is to provide a range of palliative care services within Rotherham Borough and we are the only Hospice for adults serving all people in Rotherham with a terminal illness.
In 2022/2023, the Board updated the vision and mission statements (for the period to 2027) as follows:
|Vision|We will provide the people of Rotherham with exceptional
Palliative and End of Life Care, by working collaboratively
and engaging with the community to drive forward services
in South Yorkshire|
|---|---|
|Mission|We wil achieve this through:
•High quality care
•Leadership and influencing
•Ongoingsustainability|
Page 3
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **OUR PURPOSE AND ACTIVITIES (continued)**
## **How Our Activities Provide Public Benefit**
## **OUR SERVICES**
Rotherham Hospice provides specialist palliative care to adults in Rotherham who have any progressive life limiting illness. The Hospice is independent of the NHS and is a registered charity. There is no charge for our services. The Hospice is commissioned by the NHS South Yorkshire Integrated Care Board Rotherham Place to deliver some services on behalf of the NHS.
The Hospice aims to enhance the quality of life for patients in line with their wishes and needs through providing or influencing services for patients through the changing phases of illness. We do not provide long term care or respite care for patients.
Patients are referred to the Hospice by a number of clinicians these can include GP’s, Consultants from the acute hospitals, district nursing, Macmillan, nurses and therapists.
As a Hospice, we provide specialist palliative care which is delivered as part of a pathway designed to wrap around the patient’s needs by a multi-disciplinary team with a holistic approach who aim to support the patients to lead a purposeful and fulfilling life in their own home or in the Hospice. The services provided include:
- 24-hour inpatient care for symptom control and end of life care
- Community clinical nurse specialist care (including 24/7 advice and guidance line)
- Hospice at Home
- Physiotherapy
- Occupational therapy
- Palliative Medicine
- Adult bereavement
- Sunbeams – children & young people bereavement
- Adult counselling
- Day Hospice, a range of clinical and non-clinical services
Trustees acknowledge the importance of the whole Hospice team in the successful delivery of patient care which includes the income generation team, support services and other staff and volunteers.
Page 4
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## _**Strategic report**_
## _**Achievements and performance**_
Rotherham Hospice is an independent charity working as part of the health and social care system in the Borough of Rotherham. The Hospice is playing an active role within the South Yorkshire Integrated Care System working with the other Hospices to ensure that the role of the charities is recognised and incorporated into the new system.
During 2022/23, the Hospice services have remained busy. All the clinical pathways are being reviewed to ensure that we provide a seamless service with other clinical teams focussed on specialist care and support and education for other providers to ensure that patients received appropriate care and support through their patient journey. This work will complete during 2023/24.
The 24/7 Community Service allows an increased level of coordinated support to be provided ensuring that care is provided by the right people in the right place at the right time. This therefore allows appropriate use of our Hospice beds and prevents unnecessary hospital admissions. During 2022/23, the Night Service was provided by a Marie Curie Nursing Team.
We continue to be highly respected with an excellent reputation in the wider community. We have continued to engage with our community; building strong relationships with public and business partners as well as those from the Health and Social Care communities, working to provide an increased strength and independence to support our sustainable growth and independence in the future.
Rotherham Hospice was inspected by the Care Quality Commission in March 2019 and was extremely pleased that our rating improved to ‘Good’ across all domains. We have reviewed our performance against the CQC Key Lines of Enquiry during 2022/23 and instigated quality improvement plans to ensure that we continue to improve our services for patients and families.
## **Inpatient Unit**
The Hospice has a 14 bedded IPU that provides 24/7 specialist palliative, end of life care and emotional support to patients, families and carers that meet individuals needs in line with the plan of care agreed with the person.
Our single rooms have been invaluable in enabling the Hospice to maintain standards for single sex accommodation and to meet all infection control and prevention requirements. The single rooms and the layout of the IPU have enabled the Hospice to maintain service provision during the Covid-19 pandemic ensuring the safety of our patients and staff.
Our 14 individual rooms all have en-suite bathroom facilities. During 2022/23 the Inpatient Unit was refurbished following consultation with people who had used the service and the multi-disciplinary team. We received a generous legacy and in partnership with the bereaved family were able to create a dedicated home from home bathroom and shower facility. The Foxglove Suite enables family members to have a dedicated place on unit where they can use the toilet and bathroom facilities whilst being close to their loved ones.
All patients on the IPU have access to the garden and outdoor seating/furniture and most of our bedrooms have direct access outdoor balcony areas and seating for patients and families to use.
Our staff work with patients and families to enable and support them to be able to participate in caring and supporting their loved one as they wish to.
Page 5
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Strategic report (continued)**
## **Achievements and performance (continued)**
During the last year restrictions in respect of the national Covid-19 directions have been in place to enable us to keep patients, families and staff safe. The IPU staff have worked hard with patients and families to ensure that the restrictions were as least restrictive as possible particularly in respect of visiting. Following the national relaxation in restrictions over the course of 2022/23, we have been able to return to open visiting and have lifted some of the restrictions in respect of mask wearing by staff and visitors. We continue to monitor the situation, assess levels of risk and review procedures on a regular basis to ensure the continued safety of our patients and staff.
The Hospice catering facilities are open and available to all patients and families for meals, snacks and hot/cold drinks and there is a kitchen area on the IPU that can be used to make drinks. The Hospice has this year recruited a Chef and the Chef and Head of Service are working closely together to look at how the individual needs and wants of patients and families can be met at all times.
## **Day Hospice and Day Therapies**
During the pandemic the services within the Day Hospice were closed. Some services have been recommenced within Hospice settings as Covid-19 restrictions have been lifted including wreath making and memory boxes, counselling groups and lymphoedema clinics.
In late 22/23, the Deputy Director of Clinical Services commenced work on a strategic plan to re-open the day Hospice. A pilot of potential services was run over a 6-week period which included the provision of medical and nursing clinics and a range of arts/crafts. We are currently looking through feedback received and are seconding staff to lead the progress of the work and aim for this to be provided to patients in the community as well as those attending the Hospice or on IPU.
In preparation for the re-opening of the Day Hospice, the facilities were refurbished to improve the quality of the environment for patients, families and staff. An amazing mural has been added having been hand painted by a local artist.
## **Patient and Family Support Services**
Our Counselling and Clinical Psychology Service is available to patients and their families. Our Bereavement Counselling Service supports bereaved family members or significant others with complex needs and is based at the Hospice. The counsellor can also provide pre-bereavement counselling if needed. The service has continued to operate as an online or telephone service throughout the year.
Our Sunbeams service provides practical and emotional support for children aged 5 and upwards. Sunbeams offers a safe environment for the children to share experiences and address their needs around someone who is seriously ill or the death of a loved one.
## **Community Services**
The Hospice provides a range of community services that are focused on caring for patients with specialist palliative and end of life care needs in their own homes, this includes nursing and care homes.
The community services team cares for patients who have a terminal condition and are within the last year of their lives through a range of pathways. The team have a skilled multi-disciplinary workforce who work collaboratively across all elements of community services responding to patients needs as their condition changes or progresses. The service is led
Page 6
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Strategic report (continued)**
## **Achievements and performance (continued)**
by a team of Clinical Nurse Specialists and the Community Palliative Care Consultant and includes:
- Planned Care
- The Reactive Team
- Advice & Guidance Line
- Hospice at Home
- Marie Curie Service
- Therapy
A range of therapy services is provided to wrap around the community palliative and end of life care, patients both in the Hospice and in the patient’s own home. Occupational therapy and physiotherapy is provided within the IPU and community with a view to supporting mobility and maximising independence. The Hospices current and future occupational therapy and physiotherapy model is be reviewed as part of the clinical services review during 2023/24.
## **Patient Experience**
Feedback from our patients, families and those close to them is hugely important to us so that we can understand their personal experiences and quality of care received. We use this feedback to inform how we can continuously strive to improve the quality of our services.
## **Quality Accounts**
The Hospice is proud to publish Quality Accounts which describes and demonstrates the ways in which we provide high quality specialist palliative care to Rotherham patients who have life limiting conditions, support families and carers and provide bereavement support to adults and children.
Our Quality Accounts enable Rotherham Hospice to show our commitment to maintain and continuously improve the quality of the services we provide to the Rotherham population. We measure our quality by looking at patient safety and learning, patient outcome measures, listening to families and carers experiences and feedback about how we could make improvements.
These are available on the Hospice website.
Page 7
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Strategic report (continued)**
## **ACTIVITY**
The normal operating model for the Hospice was significantly affected in responding to the pandemic and, as such, our normal pattern of activity has changed as we emerge into a post-COVID environment. We have sought to deliver more care in different settings. An example of our activity profile is provided below with prior years provided for comparison.
||**2018/19**|**2019/20**|**2020/21**|**2021/22**|**2022/23**|
|---|---|---|---|---|---|
|Total number of
patients admitted
to the Inpatient
Unit, and total
admissions
including
readmissions|314 patients (386
admissions)|342 patients (406
admissions)|281 patients (318
admissions)|317 patient (372
admissions)|361 patient (383
admissions)|
|Average IPU bed
occupancy %|86.7%|81.6%|61.0%|76.0%|70.0%|
|Percentage of
patients treated
and discharged
for ongoing care
and support|146 out of 365
discharges =
40.0%|156 out of 406
discharges =
38.4%|118 out of 320
discharges =
38.8%|145 out of 372
discharges =
38.9%|84 out of 383
discharges =
22%|
|Number of deaths
in the Inpatient
Unit|219|249|200|220|282|
|Number of
referrals to the
Hospice at Home
team (* revised
from previous
report)|1,124*|1,367*|1,539*|1,589|1,123|
|Number of home
visits by Hospice
at Home team|17,391|14,081|8,934|10,018|8,787|
|Number of
telephone
contacts by
Hospice at Home
team|8,035|8,920|9,934|9,556|9,096|
|Number of video
contacts by the
Hospice at Home
team|0|0|2|1|7|
|Number of new
referrals to
Clinical Specialist
Team|985|1,033|1,138|803|733|
Page 8
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
||**2018/19**|**2019/20**|**2020/21**|**2021/22**|**2022/23**|
|---|---|---|---|---|---|
|Number of
planned face-to-
face visits by the
Clinical Nurse
Specialist Team|2,640|2,205|1,440|2,194|2,068|
|Number of
telephone
contacts by the
clinical nurse
specialist team|4,339|4,041|8,246|6,368|3,824|
|Number of video
contacts by the
Clinical Nurse
Specialist Team|0|0|3|7|3|
|Number of
referrals to the
Adult
Bereavement
Support service
(volunteer led)|Not collected on
SystemOne in the
year|Not collected on
SystemOne in the
year|189|163|153|
|Number of
contacts for the
Adult
Bereavement
Support service
(volunteer led)|Not collected on
SystemOne in the
year|Not collected on
SystemOne in the
year|126 Telephone
47 Face to Face|243 Telephone
43 Face to Face|189 Telephone
405 Face to Face|
|Number of
children who have
been referred to
the Sunbeams
service|Not collected on
SystemOne in the
year|34 (part year)|52|104|198|
|Number of
referrals Adult
Counsellingteam|Not previously
reported|Not previously
reported|98|149|138|
|Number of face-
to-face contacts
by Adult
Counsellingteam|Not previously
reported|Not previously
reported|32|66|349|
|Number of
telephone
contacts by Adult
Counsellingteam|Not previously
reported|Not previously
reported|484|233|1134|
|Number of video
contacts by the
Adult Counselling
team|Not previously
reported|Not previously
reported|6|0|0|
Page 9
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
||**2018/19**|**2019/20**|**2020/21**|**2021/22**|**2022/23**|
|---|---|---|---|---|---|
|Number of
referrals Palliative
Psychologyteam|Not previously
reported|Not previously
reported|101|25|no longer in use|
|Number of face-
to-face contacts
by Palliative
Psychologyteam|Not previously
reported|Not previously
reported|35|17|no longer in use|
|Number of
telephone
contacts by
Palliative
Psychologyteam|Not previously
reported|Not previously
reported|180|22|no longer in use|
|Number of video
contacts by the
Palliative
Psychologyteam|Not previously
reported|Not previously
reported|35|9|no longer in use|
|Number of
referrals Palliative
OT team|297|325|306|373|261|
|Number of home
visits by Palliative
OT team|558|719|404|592|266|
|Number of
telephone
contacts by
Palliative OT team|485|512|686|644|390|
|Number of video
contacts by the
Palliative OT team|0|0|77|19|2|
|Number of
referrals
Physiotherapy
team|322|327|218|218|204|
|Number of home
visits by
Physiotherapy
team|260|274|135|119|159|
|Number of
telephone
contacts by
Physiotherapy
team|250|224|176|186|146|
Page 10
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
||**2018/19**|**2019/20**|**2020/21**|**2021/22**|**2022/23**|
|---|---|---|---|---|---|
|Number of video
contacts by the
Physiotherapy
team|0|0|2|10|0|
|Number of
patients with
Covid 19 treated
in the inpatient
unit|N/A|N/A|31|4|14|
## **RISK MANAGEMENT**
The Trustees have reviewed the major risks to which the charity is exposed and policies, systems and procedures have been established to mitigate those risks, which are set out in the Corporate Risk Register, and the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
The Risk Register is updated routinely and monitored at each of the meetings of the Board of Trustees.
As part of its contractual requirements, the Hospice completes the Data Security and Protection Toolkit (DSP) annually which ensures its data protection policies and procedures are in line with the requirements of the NHS. This is an essential priority for the Hospice in maintaining reputational integrity and delivering the high standards expected of us and to demonstrate that to the public bodies that regulate and fund the Hospice.
Patient safety is our upmost priority. We have bi-monthly Patient Safety and Clinical Risk meetings the second of each month being a combined meeting with Quality and Clinical Effectiveness. These meetings feed into the Governance Committee which meets up to four times a year to receive assurance that clinical matters remain well-managed and operating effectively.
Financial sustainability is a risk which the Hospice continually monitors with monthly reporting in place and a full rootand-branch review of our service offer, retail offer, fundraising activities and back-office functions.
On 7 June 2023, the Trustees received the Corporate Risk Register which included the principal risks and uncertainties that could seriously affect the performance, prospects or reputation of Rotherham Hospice as follows:
- Maintaining the highest standards of quality and patient experience and meeting all our regulatory and contractual bodies requirements (both national and local)
- Ensuring that there is an appropriate clinical workforce in place to deliver services
- Failing to operate in a financially sustainable manner; including increasing demand, increased costs and reduced fundraising income
- Recognising the current cost-of-living increase and its impact on staff and communities
- Managing reserves through an investment portfolio which exposes the Hospice to market changes
- Ensuring that IT connectivity remains in place between the Hospice and the local health partners and developing clinical system expertise
Page 11
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
- Responding to the ongoing demands on economic factors; from a clinical, financial, retail perspective
- Maintenance of Hospice infrastructure and plant
- Managing the impact of pharmacy provision and the difficulties in securing support
- Ensuring that training records are accurate and up to date
## **FINANCIAL REVIEW**
Details of the income and expenditure are given on the page headed "Statement of Financial Activities". In the year ended 31 March 2023, overall income exceeded expenditure by £346k (last year £2.5m), being comprised of a surplus in Unrestricted Funds of £1.1m (last year surplus £1.8m) and a deficit in Restricted Funds of £0.7m (last year surplus £0.7m). This pattern reflects the Hospice utilising its Restricted Funds built up over the previous years in order to provide services and investment.
The ability of the Hospice to report a surplus reflects both partnership working within our local health system and the generosity of our local population and local businesses in difficult economic circumstances. Thank you to everyone who supports the Hospice.
Unrestricted Funds represent reserves which the Hospice can use to run its services safely and effectively on an ongoing basis, whereas Restricted Funds represent specific donations ascribed to a specific purpose. These are detailed in a note to the accounts. Whilst every donation is important to the Hospice, we encourage donors to make donations on an unrestricted basis to enable the Trustees to have maximum flexibility to invest resources in services.
Total income for the year amounted to £6.0m (last year £7.8m). This reduction in income responds to the economic pressure being felt in the health system, local businesses and in the pocket of every household in Rotherham. Income from the NHS Rotherham CCG contributed around 60% our total income. Income from Donations - including In Memorium Donations - were gratefully received and amounted to £444k (last year £465k). Legacies were also gratefully received to the value of £545K (last year £1.0m). We are very grateful to those individuals and families who remember the Hospice in their Wills.
Income from trading activities which includes Lottery, Events, Corporate Fundraising and Retail provided £1.2m (last year £1.2m) of support. We are very grateful to the public who both donate and purchase pre-loved goods through our retail outlets which have seen an increase in revenues over the last 12 months.
During the year, we spent £5.6m (although our underlying cost base is £6.4m); which equates to nearly £18,000 every single day.
Nevertheless, we spend more than 80% of our income on patient care with the remainder on raising funds (including running events, keeping shops open and supporting our fundraising team).
With regard to financial indicators, our net assets of £11.7m (last year £11.4m) have improved during the year which includes the introduction of an investment portfolio. Unrestricted Funds are £10.5m (last year £9.5m) and Restricted Funds are £1.2m (last year £1.9m).
Looking ahead into an uncertain economic climate, we will do all we can to ensure that we maximise our fundraising and retail income, work with our NHS and non-NHS colleagues to attract more funding, manage our costs in a mature and disciplined manner and connect with our local population and businesses to ensure that we have a thriving financial
Page 12
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
position to continue to provide care for patients both in the near term and the long term future.
However, having a cost base which is greater than income means that we are at risk of spending more money than we have coming in each year. This means that we will be depleting our reserves and that every single day we are spending more on services for patients than we have coming in.
In these difficult times, we are grateful to our local population and business for their continued support. Your donations make all the difference, however large or small, and we could not run our much-needed services for our patients and your families without you. Thank you.
## **INVESTMENTS**
During the year, the Trustees reviewed the opportunities for establishing an external investment portfolio and - whilst recognising the risks of the markets in that investment values can go down and up - approved that a portfolio was established. This outcome reflected a journey of the Trustees over 18 months to consider how the Hospice cash reserves could be better utilised.
This process included:
- Updating the Reserves Policy (see below)
- Updating the Terms of Reference for the Finance and Income Generation Committee to ensure they contained necessary remit to oversee investments.
- Creating and adopting an Investment Policy
- Appointing an Investment Manager - whereby Charles Stanley and Co Ltd were appointed as professional investment advisers
- Considering and adopting an overall approach to portfolio objectives and risk whereby an “overall return” approach was adopted along with a “low-medium” risk portfolio
- Considering an approach to Environmental, Social and Governance (ESG) criteria for the portfolio
- Reviewing and agreeing the amount of cash to be invested – which was agreed as £1.5m.
Some key Investment Objectives were agreed:
- To seek to produce the best financial return within an acceptable level of risk, whilst utilising the expertise of the Investment Manager who operates in accordance with industry best practice.
- To generate a total return in excess of inflation over the long term whilst generating an income to support on-going activities.
- In this context, ‘long term’ is taken to be a period of 10 years or more and ‘medium term’ is taken to be 3-5 years.
The investment objective for the short-term reserves is to preserve the capital value with a minimum level of risk. Assets should be readily available to meet cash flow requirements.
The cash transfers were made to Charles Stanley and Co Ltd from January 2023 to March 2023 and the total value of the portfolio at 31 March 2023 was £1,486,831.
Page 13
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **RESERVES POLICY**
During the course of 2022-23, the Trustees reviewed the Reserves Policy to ensure that the level of reserves enable the Hospice to maintain and invest in frontline services to maintain a high level of quality and further develop our offer; particularly in the contact of current economic conditions
The Trustees have adopted a risk-based approach to managing the reserves of the charity following the framework issued by the Charity Commission in guidance CC19. The objective is to maintain sufficient reserves for managing short to medium term risk against continuing to invest in frontline services to maintain a high level of quality and further develop our offer.
Given the perceived financial uncertainty, Trustees considered the need to provide stakeholders with the reassurance about both the continuation and development of services for the longer term and where necessary withstand deficit budgets given the unpredictability of legacy and donations or sudden unanticipated expenditure. Trustees feel it prudent to carry unrestricted reserves equivalent to six months operational activity.
Reserves are held in a mixture of cash and investments to ensure sufficient liquidity is maintained whilst maximising return within the agreed levels of risk. Cash amounting to three month’s operational costs will always be held on instant access.
|Reserves Policy|Measure|Actual|
|---|---|---|
|Operational Costs for 6 months held in
free reserves|£3.2m|£7.2m|
|Operational Costs for 3 months held in
instant access cash|£1.6m|£6.9m|
The Hospice has maintained a favourable position against its Reserves Policy and Trustees will review the reserves policy regularly as required.
Free reserves as at 31 March 2023 totalled:
**£** Unrestricted reserves excluding pension liability 10,520,091 less: Fixed assets (3,255,744) Free reserves 7,264,347
## **INCOME GENERATION**
Thank you to our supporters who have remained loyal and have continued to donate generously throughout 2022/2023. Despite economic challenges that were compounded by war in Ukraine and the cost-of-living crisis, our loyal base of supporters have continued to donate, volunteer and raise funds for Rotherham Hospice.
Outsourcing of the lottery has been a huge success and the numbers of players has increased for the first time in several years. We will continue to work closely with our partners, Local Hospice Lottery, to ensure our players receive the highest level of service and all opportunities are explored in order to achieve a high value, high quality product.
Our events portfolio returned has continued to grow. The public now seem to have confidence in returning to mass participation events. The “Light Up a Life” event achieved its highest ever income figure with a record number of people attending services at the Hospice and Rotherham Minster.
Page 14
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED) _FOR THE YEAR ENDED 31 MARCH 2023_
In retail, our shops have had a very successful year. The hard work of our shop managers and volunteers cannot be overlooked, neither can the contribution of our generous donors. The shops provide a vital link between the Hospice and the local community, creating a space where people of all backgrounds can come together.
The difficult decision to remove 3 shops from our portfolio during the year was driven by the need to ensure that the deployment of our resources provided value for money. Despite the reduction in premises, we have seen a significant growth in our net position across retail. Our community-based shops will continue to offer value for money goods, volunteer opportunities and a sustainable model where the public can recycle their pre-loved goods.
## **FUNDRAISING STATEMENT**
All fundraising activities are directly managed by the Hospice. We are committed to the highest standards of fundraising practice, and all our activities are carried out in an ethical manner.
Rotherham Hospice is registered with the Fundraising Regulator and adheres to the standards set out in the Code of Fundraising practice. Our policies, procedures, systems, and processes have been reviewed and updated in line with General Data Protection Legislation (GDPR).
The Hospice has never and will never share or sell details of our donors.
During the year we had no fundraising complaints. We protect the public from undue pressure by following the Code of Fundraising Practice as set out by the Fundraising Regulator.
## **TECHNOLOGY AND CYBER SECURITY**
The Hospice is supported by professional expertise to provide its IT infrastructure, equipment and telephony, Microsoft environment and data protection and routinely convenes a Digital and Technology Forum which engages key digital experts and partners to work collaboratively to support the Hospice and progress along a digital journey. The Forum includes both NHS and non-NHS partners as well as Information Governance expertise.
Technology resilience, technology enhancement and cyber-security are essential to make sure our information about what we do, the people we support, staff and our volunteers, is effective and protected. The Digital and Technology Forum is working with the Hospice to improve our infrastructure, make the most of new advancements and identify a path to cyber essentials.
In June 2023, the Hospice submitted a compliant Data Security and Protection Toolkit, which provides assurance that arrangements are in place to safely process data in line with the NHS contract enabling connection to NHS systems.
## **SUSTAINABILITY**
Rotherham Hospice is committing to doing all we can over the next five years to make the Hospice a more sustainable place.
In 2023, we commissioned an audit of our energy usage and received a report on what we are doing well and areas we could develop.
From this we have already started trying to make our services as sustainable as possible by recycling office waste, reducing the amount of waste from our shops, setting up a sustainability group to discuss ideas, and encouraging staff to share tips and produce from home growing.
Page 15
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
But we still have more we want to achieve. Our goal is to deliver the best possible care whilst adopting and maintaining the following principles of a greener hospice:
- Energy efficiency
- Waste reduction
- Reuse of items throughout the hospice
- Promotion of recycling/zero landfill
- Buying local where possible
- Encouraging staff involvement
## **PLANS FOR FUTURE PERIODS**
The Board has undertaken work to revise the Corporate Strategy which included a review of its Mission Statement, Vision, Values and Corporate Strategic Objectives.
The vision and values have been revisited to ensure that they maintain a focus for staff and volunteers about how our services are provided.
We will continue to be the key specialist provider for Palliative and End of Life services for adults across the Borough of Rotherham
## **Corporate Strategic Objectives 23/24**
- Establish ourselves as a provider of outstanding care for patients and their families & friends within Rotherham in line with the national standards for palliative care and the fundamental standards of the Care Quality Commission
- Spend less, raise more and get better value – address our £2,000 a day overspend to ensure we have enough in the bank to run the Hospice
- Reduce our carbon footprint by 25% by 2027 – taking every opportunity to go green
- Developing our people to be the best that they can be to provide high quality care for our patients and families, focusing on Performance, Learning & Development and Recruitment & Retention
## **Values**
Page 16
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **ACKNOWLEDGEMENTS**
Trustees would like to acknowledge Lady Scarbrough’s ongoing role as our patron.
Trustees would like to acknowledge John Breckin in his ongoing role as a Hospice Ambassador.
In the current financial climate The Board of Trustees are grateful to all who continue to support the work of the Hospice across all areas of clinical services, retail and income generation
## **VOLUNTEERS**
Trustees would like to thank the wonderful team of volunteers who have given so much of their time, support, enthusiasm, compassion and care over the years. We currently have 94 volunteers.
## _**Structure, governance and management**_
## **Governing Document**
Rotherham Hospice is registered as a charity with the Charity Commission. Anyone over the age of 18 can be a member of the Company, there are currently 33 members. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. It is also registered as a company limited by guarantee, without a share capital. Its governing instrument is its Memorandum and Articles of Association dated 10 June 2013, updated on the 24 August 2015.
In all cases, the Chair, Trustees and the Chief Executive form part of the formal interview process for prospective Trustees. In some cases, the use of an agency will be used to support the recruitment of Trustees.
Trustees confirm their eligibility to act as a Trustee of a charity (under the provisions of the Charities Acts 1992 and 1993) and complete several additional checks which satisfy the standards set by the Care Quality Commission. The appointment is confirmed following the completion and return of an Enhanced DBS check, confirmation of any Declaration of Interest completed.
The Mandatory Training Plan for Trustees has been redesigned and wider access to development through Hospice UK.
None of the Trustees receive remuneration or any other benefit for their role as a Trustee of the Charity. Any connection between a Trustee or senior manager of the Charity, with a third party or other organisation, must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. Any related party transactions are disclosed at note 28 of the accounts.
## **Organisational Structure and Management**
The Board Manual sets out the governance structure of the Hospice. Trustees are responsible for strategic leadership and govern the work of the Hospice. The Trustees are, for the purposes of the Companies Act, equivalent to Directors. The Board meets regularly, generally every three months, with most of the Trustees attending the meetings. Meetings have been held both in person and remotely (using MS Teams) or mixed.
The Board operates with three Committees, being the Finance and Income Generation Committee, the Clinical and Corporate Governance Committee and the Human Resources Committee. Each of the Committees has Trustee and management representation and is chaired by a Trustee.
Page 17
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Structure, governance and management (continued)**
The Board operates a scheme of delegation and the operational management is delegated to the Chief Executive and the Executive Team. We will also welcome a new Chief Executive in the summer of 2023 as our former Chief Executive leaves.
We are pleased to report that following a period of Trustee and Executive turnover in the previous year, we have remained broadly stable. We continue to actively look to recruit Trustees who can provide knowledge and experience which support the running of the Hospice.
The Executive Directors report to the Board of Trustees at each Board meeting and are actively part of all Board Committees.
The Hospice is commissioned by NHS South Yorkshire Integrated Care Board (ICB), to deliver a range of palliative care services to people affected by terminal illness. The Board assures that the Hospice fulfils the requirements of the NHS contract through the Corporate and Clinical Governance Committee. The Board maintains a robust governance framework to monitor, review and ensure compliance with all regulatory and best practice standards established by national regulators (Care Quality Commission, Law Commission, Charity Commission and NHS England) and local regulators (NHS South Yorkshire ICB). In addition, the Board maintains close working relationships with a range of stakeholders including the Rotherham PLACE Board, The Rotherham Hospitals NHS Foundation Trust; as well as a range of local care providers including care homes, bereavement support charities, patients, public and volunteers.
The Hospice is also working collaboratively with other South Yorkshire Hospices, and this is continuing to progress. There will be some key opportunities going forward initially through the work around transition of care for children and young people.
Until the impact of the pandemic, the Trustees were regularly undertaking both formal unannounced audits and informal visits to the Hospice.
The Board also monitors national developments in the health and social care environments to ensure that the Hospice is fit to respond to future opportunities and challenges in palliative care.
## **Pay policy for Senior Staff**
The Board of Directors, who are the Trust’s Trustees, give of their time freely and no director received remuneration for their role as Trustee in the year. Details of Trustee Remuneration and Related Party Transactions are disclosed in note 12 to the accounts.
The Executive Directors are the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day-to-day basis alongside a wider senior management team. The remuneration of the Executive Team and the senior staff is reviewed against the marketplace for Hospice Executives from time to time by the HR Committee who make recommendations to the Board of Trustees.
The Trustees have considered and reviewed the pay and associated benefits for staff. The first pay award for staff after a few years of pay-freeze came in April 2019 with a 1% award. During the 20/21 year, the Hospice agreed a non-recurrent / non-consolidated award to staff of 2% to recognise the hard work and commitment during such a difficult period. From 1 April 2021, the Trustees agreed a 3% pay award to staff which represented the largest single pay award for many years. From April 2022, the Trustees agreed a 4.25% pay award to staff as well as reflecting the hourly rate of the Real Living Wage at that time for our lowest paid staff. This initiative is supporting staff through the current financial impact of the economy. For completeness, in March 2023, Trustees agreed a one-of payment to staff to provide some additional
Page 18
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Structure, governance and management (continued)**
support through the cost-of-living crisis; and agreed a 4% pay award as well as continuing to match the hourly rate of the Real Living Wage for our lowest paid staff.
During the year, the Hospice sought to respond to the cost-of-living crisis which continues to affect and introduced a number of initiatives including:
- Café menu prices reduced by 50% for staff
- Travel reimbursement increased from 45p to 55p per mile.
- Information & advice re cost-of-living support provided via newsletter
- Providing an additional one-off cost of living supplement payment in March 2023
- Providing a pay award increase from 1 April 2023 Proposal for pay review for 2023/24
## **Statement of Trustees' responsibilities**
The Trustees (who are also directors of The Rotherham Hospice Trust for the purposes of Company Law) are responsible for preparing the Report of the Trustees (including the Strategic 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, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP 2019 (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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 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.
Page 19
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Disclosure of information to auditor**
In so far as the Trustees are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware; and
- The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Auditor**
The auditor, BHP LLP, has indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
In approving the Trustees' report, we also approve the Strategic Report included therein, in our capacity as company directors.
Approved by order of the members of the board of Trustees and signed on their behalf by:
## BAWarner
BAWarner (Nov 1, 2023 13:58 GMT)
**Bruce Warner** (Chair of Trustees) Date: Nov 1, 2023
Page 20
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ROTHERHAM HOSPICE TRUST
We have audited the financial statements of The Rotherham Hospice Trust (the ‘charitable company’) 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 statements, including 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 trustees' report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees' 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.
Page 21
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ROTHERHAM HOSPICE TRUST (CONTINUED)
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees' report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the 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 strategic report and the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **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.
## **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 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.
Page 22
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ROTHERHAM HOSPICE TRUST (CONTINUED)
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:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the group through discussions with trustees and other management, and from our commercial knowledge and experiences of the charities sector;
- we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Charities Act 2011, Companies Act 2006, taxation legislation and data protection, employment and health and safety legislation (including CQC documentation);
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence throughout;
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
- making enquiries of management and trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risks of fraud through management bias and override controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 1(s) were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance; and
- enquiring of management as to actual and potential litigation and claims.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the
Page 23
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ROTHERHAM HOSPICE TRUST (CONTINUED)
more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 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.
## Jane Marshall (Nov 14, 2023 14:55 GMT)
Jane Marshall (Senior Statutory Auditor)
for and on behalf of
## **BHP LLP**
Statutory Auditor 2 Rutland Park Sheffield S10 2PD
Date: Nov 14, 2023
Page 24
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) _FOR THE YEAR ENDED 31 MARCH 2023_
|**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
**Total income**
**Expenditure on:**
Raising funds
8
Charitable activities
9
**Total expenditure**
**Net income/(expenditure) before net**
**losses on investments**
Net losses on investments
16
**Net income/(expenditure)**
Transfers between funds
20
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2023**
**£**
**971,878**
**3,643,008**
**1,204,778**
**21,213**
**118,158**
**5,959,035**
**733,812**
**4,267,245**
**5,001,057**
**957,978**
**(13,241)**
**944,737**
**119,793**
**1,064,530**
**9,455,561**
**1,064,530**
**10,520,091**|**Restricted**
**funds**
**2023**
**£**
**16,376**
**3,000**
**-**
**-**
**-**
**19,376**
**16,063**
**602,065**
**618,128**
**(598,752)**
**-**
**(598,752)**
**(119,793)**
**(718,545)**
**1,937,420**
**(718,545)**
**1,218,875**|**Total**
**funds**
**2023**
**£**
**988,254**
**3,646,008**
**1,204,778**
**21,213**
**118,158**
**5,978,411**
**749,875**
**4,869,310**
**5,619,185**
**359,226**
**(13,241)**
**345,985**
**-**
**345,985**
**11,392,981**
**345,985**
**11,738,966**|Total
funds
2022
£
1,483,774
5,052,424
1,219,985
189
58,421|
|---|---|---|---|---|
|||||7,814,793|
|||||964,639
4,330,409|
|||||5,295,048|
|||||2,519,745
-|
|||||2,519,745
-|
|||||2,519,745|
|||||8,873,236
2,519,745|
|||||11,392,981|
The statement of financial activities complies with the requirements for an income and expenditure account under the Companies Act 2006 and includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Page 25
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
REGISTERED NUMBER: 02234222
## BALANCE SHEET
_AS AT 31 MARCH 2023_
|**Note**
**Fixed assets**
Tangible assets
15
Investments
16
**Current assets**
Stocks
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
**Net current assets**
**Total assets less current liabilities**
**Total net assets**
**Charity funds**
Restricted funds
20
Unrestricted funds (includes revaluation reserve
of £nil (2022: £27,125))
20
**Total funds**|**15,509**
**730,368**
**6,769,350**
**7,515,227**
**(518,836)**|**2023**
**£**
**3,255,744**
**1,486,831**
**4,742,575**
**6,996,391**
**11,738,966**
**11,738,966**
**1,218,875**
**10,520,091**
**11,738,966**|19,037
1,482,182
6,994,243
8,495,462
(485,815)|2022
£
3,383,334
-|
|---|---|---|---|---|
|||||3,383,334
8,009,647|
|||||11,392,981|
||||||
|||||11,392,981|
|||||1,937,420
9,455,561|
||||||
|||||11,392,981|
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 were approved and authorised for issue by the Trustees and signed on their behalf by:
## BAWarner
BAWarner (Nov 1, 2023 13:58 GMT)
## **Bruce Warner**
(Chair of Trustees) Date: Nov 1, 2023
The notes on pages 28 to 50 form part of these financial statements.
Page 26
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## STATEMENT OF CASH FLOWS
_FOR THE YEAR ENDED 31 MARCH 2023_
|**Note**
**Cash flows from operating activities**
Net cash provided by operating activities
23
**Cash flows from investing activities**
Interest and dividends received
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Purchase of investments
**Net cash used in investing 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**
24|**2023**
**£**
**1,196,975**
**21,213**
**210,000**
**(153,009)**
**(1,354,192)**
**(1,275,988)**
**(79,013)**
**6,994,243**
**6,915,230**|2022
£
1,662,098
189
1,750
(91,689)
-
**(89,750)**
**1,572,348**
5,421,895
6,994,243|
|---|---|---|
Page 27
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies**
## _**1.1 Basis of preparation of financial statements**_
The Rotherham Hospice Trust is registered as a company limited by guarantee, without a share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered office is given in the charity information on page 1 of these financial statements.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts inaccordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## _**1.2 Going concern**_
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
Page 28
**THE ROTHERHAM HOSPICE TRUST**
**(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies (continued)**
## _**1.3 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.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees’ Report.
Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.
Gifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impracticable to fair value the items due to the volume of low value items they are not recognised in the financial statements until they are sold. This income is recognised within ‘Income from other trading activities’.
For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
The charity receives government grants in respect of charitable activities and captial expenditure. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
Investment income is earned through holding assets for investment purposes such as shares and property,
Page 29
**THE ROTHERHAM HOSPICE TRUST**
**(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies (continued)**
## _**1.3 Income (continued)**_
which includes interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.
## _**1.4 Expenditure**_
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- The costs of raising funds relate to purchase of promotional goods, cost of running the retail outlets, cost of events, publicity and lottery prizes and running costs.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and
- services for its beneficiaries. It includes both costs that can be directly allocated to such activities and those costs of an indirect nature necessary to support them.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
## _**1.5 Tangible fixed assets and depreciation**_
Tangible fixed assets costing £500 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 (or deemed cost) or valuation. 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% straight line|
|---|---|
|Long-term leasehold property|- straight line over shorter of lease period and 50|
||years|
|Motor vehicles|- 25% reducing balance|
|Equipment and computers|- 5%, 20%, 15% & 33% straight line|
Page 30
**THE ROTHERHAM HOSPICE TRUST**
**(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies (continued)**
## _**1.6 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.
## _**1.7 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. Donated stocks are included based on values of donated good sales in the first two weeks after the year end.
## _**1.8 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.
## _**1.9 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.
## _**1.10 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.
## _**1.11 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.
Page 31
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies (continued)**
## _**1.12 Operating leases**_
Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.
## _**1.13 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.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the 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.
## _**1.14 Employee benefits**_
When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The charitable company operates two defined contribution pension schemes and the pension charges represents the amount payable by the charitable company to the funds in respects of the year.
## _**2.**_ **Critical accounting estimates and areas of judgment**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Page 32
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **3. Income from donations and legacies**
|**_Donations_**
General donations
In memoriam
Charitable trusts
Collection boxes
Give as you earn
Gift aid
**_Total donations_**
Legacies
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
190,726
192,062
-
8,033
43
46,370
437,234
534,644
971,878
1,416,959|**Restricted**
**funds**
**2023**
**£**
5,296
-
1,080
-
-
-
6,376
10,000
16,376
66,815|**Total**
**funds**
**2023**
**£**
**196,022**
**192,062**
**1,080**
**8,033**
**43**
**46,370**
**443,610**
**544,644**
**988,254**
1,483,774|Total
funds
2022
£
201,190
208,735
-
5,409
-
50,059|
|---|---|---|---|---|
|||||465,393|
|||||1,018,381|
|||||1,483,774|
||||||
## **4. Income from charitable activities**
|RCCG Standard Contract
RCCG Contract variation for specific activities
Hospice UK
Other direct delivery funding
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
3,531,569
-
-
111,439
3,643,008
3,445,958|**Restricted**
**funds**
**2023**
**£**
-
-
3,000
-
3,000
1,606,466|**Total**
**funds**
**2023**
**£**
**3,531,569**
**-**
**3,000**
**111,439**
**3,646,008**
5,052,424|Total
funds
2022
£
3,348,158
1,000,000
607,041
97,225|
|---|---|---|---|---|
|||||5,052,424|
||||||
Page 33
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **5. Income from other trading activities**
|Lottery income - gross of prizes & commissions
Events
Corporate fundraising
Catering income
Sale of promotional goods
Sales of donated goods - shops
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
283,621
212,784
24,000
25,084
52,971
606,318
1,204,778
1,219,985|**Total**
**funds**
**2023**
**£**
**283,621**
**212,784**
**24,000**
**25,084**
**52,971**
**606,318**
**1,204,778**
1,219,985|Total
funds
2022
£
436,850
184,638
620
12,410
53,876
531,591|
|---|---|---|---|
||||1,219,985|
|||||
## **6. Investment income**
|Dividends from listed investments
Bank and building society interest receivable
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
180
21,033
21,213
189|**Total**
**funds**
**2023**
**£**
**180**
**21,033**
**21,213**
189|Total
funds
2022
£
-
189|
|---|---|---|---|
||||189|
|||||
Page 34
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **7. Other income**
|Coronavirus support grants
Insurance refund
Profit on sale of assets
Other income (Hospice UK)
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
-
125
70,582
47,451
118,158
58,421|**Total**
**funds**
**2023**
**£**
**-**
**125**
**70,582**
**47,451**
**118,158**
58,421|Total
funds
2022
£
58,001
420
-
-|
|---|---|---|---|
||||58,421|
|||||
Page 35
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **8. Expenditure on raising funds**
|Lottery prizes & commissions
Lottery running costs including salaries
Direct cost of events including salaries
Shop running costs including salaries
Shop depreciation
Employers' pension - lottery and retail
Purchase of promotional goods
Fundraising indirect costs
Investment management fees
Allocation of support costs (note 10)
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
11,344
31,823
6,253
395,455
10,442
4,514
13,206
164,219
108
96,448
733,812
964,639|**Restricted**
**funds**
**2023**
**£**
-
-
-
-
-
-
-
16,063
-
-
16,063
-|**Total**
**funds**
**2023**
**£**
**11,344**
**31,823**
**6,253**
**395,455**
**10,442**
**4,514**
**13,206**
**180,282**
**108**
**96,448**
**749,875**
964,639|Total
funds
2022
£
113,323
82,509
34,684
471,291
15,293
6,335
10,011
109,520
-
121,673|
|---|---|---|---|---|
|||||964,639|
||||||
Page 36
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **9. Charitable activities - patient care**
||**Unrestricted**
**funds**|**Restricted**
**funds**|**Total**
**funds**|Total
funds|
|---|---|---|---|---|
||**2023**|**2023**|**2023**|2022|
||**£**|**£**|**£**|£|
|Contracted medical servicesprovided byNHS|441,143|-|**441,143**|417,875|
|Salaries and NI|2,169,935|493,081|**2,663,016**|2,438,983|
|Pension contributions|164,981|1,381|**166,362**|160,711|
|Staff costs includingtravel|27,824|9,786|**37,610**|6,270|
|Marie Curie staffingcost|168,338|39,924|**208,262**|205,974|
|Estates costs (general repairs, maintenance &
security)|68,623|5,165|**73,788**|65,782|
|Utilities and Insurance|126,022|19,193|**145,215**|87,160|
|Direct consumables and deliveryincidentals|203,549|16,056|**219,605**|158,403|
|Depreciation|119,194|11,544|**130,738**|112,550|
|Loss on disposal of fixed assets|-|-|**-**|33,840|
|Sundries|3,220|-|**3,220**|4,072|
|Allocation of support costs(note 10)|774,416|5,935|**780,351**|638,789|
||||||
|Total 2023|4,267,245|602,065|4,869,310|4,330,409|
||||||
|Total 2022|3,447,279|883,130|4,330,409||
Page 37
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
|**10.**|**Allocation of support costs**|**Raising Funds**|**Charitable**
**Activities**|**Total**
**funds**|Total
funds|
|---|---|---|---|---|---|
|||**2023**|**2023**|**2023**|2022|
|||**£**|**£**|**£**|£|
||Contracted telephone and IT|5,957|48,201|**54,158**|51,928|
||Salaries and NI|70,010|511,671|**581,681**|495,286|
||Pension contributions|2,594|20,992|**23,586**|19,856|
||Staff costs includingtravel|6,681|54,059|**60,740**|54,737|
||Office consumables|3,736|30,229|**33,965**|34,901|
||Legal andprofessional fees|5,624|31,317|**36,941**|36,134|
||Bank charges|605|4,892|**5,497**|5,606|
||Governance costs(see below)|1,241|78,990|**80,231**|62,014|
|||||||
||Total 2023|96,448|780,351|**876,799**|760,462|
|||||||
||Total 2022|121,673|638,789|760,462||
||**Governance**
Audit and accountancy
Employee costs and administrative support|||**2023**
**£**
**25,460**
**54,771**
**80,231**|2022
£
15,909
46,105
62,014|
Page 38
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **11. Net income/(expenditure)**
This is stated after charging:
||**2023**|2022|
|---|---|---|
||**£**|£|
|Depreciation|141,181|127,843|
|Auditor's remuneration - audit services|14,550|9,330|
|Auditor's remuneration - other services|2,650|2,410|
## **12. Staff costs**
|Salaries
Employers' social security costs
Employers' pension contributions
Agency staff costs|**2023**
**£**
**3,175,392**
**299,992**
**197,244**
**3,672,628**
**194,121**
**3,866,749**|2022
£
2,989,338
274,630
188,898|
|---|---|---|
|||3,452,866
115,419|
|||3,568,285|
The average number of persons employed by the charitable company during the year was as follows:
|Hospice
Administration, fundraising & finance
Retail
Lottery|**2023**
**No.**
**125**
**17**
**11**
**-**
**153**|2022
No.
123
17
14
3|
|---|---|---|
||||
|||157|
Page 39
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **. Staff costs (continued)**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**2023**|2022|
|---|---|---|---|
|||**No.**|No.|
|In the band £60,001|- £70,000|**1**|-|
|In the band £80,001|- £90,000|**1**|1|
The charitable company considers that the key management personnel comprise the Trustees and the Executive team - which is currently the Chief Executive and four other Directors. The total employee benefits (including employer's NI and pension) of the key management personnel employed during the year were £340,104 (2022: £275,440).
An accrual for holiday pay earned but not yet taken has been included in the salary figure for 2023 and 2022.
## **13. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).
During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - NIL).
## **14. Taxation**
The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Page 40
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **15. Tangible fixed assets**
|**_Cost or valuation_**
At 1 April 2022
Additions
Disposals
At 31 March 2023
**_Depreciation_**
At 1 April 2022
Charge for the year
On disposals
At 31 March 2023
**_Net book value_**
At 31 March 2023
At 31 March 2022|**Freehold**
**property**
**£**
**247,178**
**-**
**(175,000)**
**72,178**
**60,982**
**2,027**
**(35,582)**
**27,427**
**44,751**
186,196|**Long-term**
**leasehold**
**property**
**£**
**4,276,939**
**30,027**
**-**
**4,306,966**
**1,211,612**
**86,660**
**-**
**1,298,272**
**3,008,694**
3,065,327|**Motor**
**vehicles**
**£**
**12,793**
**-**
**-**
**12,793**
**9,197**
**1,799**
**-**
**10,996**
**1,797**
3,596|**Equipment**
**and**
**Computers**
**£**
**735,283**
**122,982**
**(500,619)**
**357,646**
**607,068**
**50,695**
**(500,619)**
**157,144**
**200,502**
128,215|**Total**
**£**
**5,272,193**
**153,009**
**(675,619)**
**4,749,583**
**1,888,859**
**141,181**
**(536,201)**
**1,493,839**
**3,255,744**
3,383,334|
|---|---|---|---|---|---|
Included in freehold property in the prior year is Fox House which was donated to the charity several years ago. It was transferred from investment property on 31 March 2012 at the directors' valuation of £175,000. The original value of the property was £146,144. During the year the property has been disposed of and therefore the revaluation reserve has been transferred back to general reserves.
Page 41
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **16. Fixed asset investments**
|**17.**||**Listed**
**investments**|**Total**
**2023**|**Total**
**2022**|
|---|---|---|---|---|
|||**£**|**£**|**£**|
||**_Cost or valuation_**||||
||Additions|1,354,192|**1,354,192**|-|
||Revaluations|(13,241)|**(13,241)**|-|
||At 31 March 2023|1,340,951|**1,340,951**|-|
||||||
||Investment cash|145,880|**145,880**|-|
||At 31 March 2023|1,486,831|**1,486,831**|-|
||||||
||Historical cost|1,500,024|**1,500,024**|-|
||**Debtors**||||
|Trade debtors
Other debtors
Prepayments and accrued income|**2023**
**£**
**228,515**
**40,596**
**461,257**
**730,368**|2022
£
311,150
33,437
1,137,595|
|---|---|---|
||||
|||1,482,182|
Page 42
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **18. Creditors: Amounts falling due within one year**
|Amounts held under agency arrangements (note 19)
Trade creditors
Other creditors
Accruals and deferred income
Deferred income at 1 April 2022
Resources deferred during the year
Amounts released from previous periods|**2023**
**£**
**210,000**
**95,798**
**115,787**
**97,251**
**518,836**
**2023**
**£**
**76,432**
**3,961**
**(76,432)**
**3,961**|2022
£
-
125,291
99,900
260,624
485,815
2022
£
139,420
76,432
(139,420)
76,432|
|---|---|---|
Income has been deferred because it relates to future accounting periods as stipulated by the funders or where the conditions for recognition have not yet been met.
## **19. Agency arrangements**
The charity acts as agent in distributing funds from NHS South Yorkshire ICB relating to joint Hospice collaboration on the adolescence pathway. The charity received £210,000 and disbursed £nil from the fund during the year. An amount of £210,000 is included in note 18, which represents the undistributed funds at 31 March 2023.
Page 43
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
|**20.**
**Statement of funds**
**Statement of funds - current year**
**Balance at 1**
**April 2022**
**£**
**_Unrestricted_**
**_funds_**
General funds
**9,428,436**
Revaluation
reserve
**27,125**
**9,455,561**
**_Restricted funds_**
IPU
**16,195**
Day Unit
**699**
Hospice @ Home
**25,921**
Marie Curie
**-**
Sunbeams
**28,970**
OT's & Physios
**402**
Clinical Central
**1,506,655**
Grounds &
Gardens
**78,643**
HR
**2,053**
IT
**203,020**
Echo
**72,441**
Retail
**2,421**
**1,937,420**
**_Total of funds_**
**11,392,981**|**Income**
**£**
**5,959,035**
**-**
**5,959,035**
**1,005**
**30**
**1,127**
**-**
**3,134**
**-**
**14,080**
**-**
**-**
**-**
**-**
**-**
**19,376**
**5,978,411**|**Expenditure**
**£**
**(5,001,057)**
**-**
**(5,001,057)**
**(22)**
**(729)**
**(840)**
**(39,924)**
**(6,329)**
**-**
**(508,095)**
**(15,915)**
**-**
**(46,274)**
**-**
**-**
**(618,128)**
**(5,619,185)**|**Transfers**
**in/out**
**£**
**146,918**
**(27,125)**
**119,793**
**(490)**
**-**
**-**
**39,924**
**-**
**-**
**(97,799)**
**(61,428)**
**-**
**-**
**-**
**-**
**(119,793)**
**-**|**Gains/**
**(Losses)**
**£**
**(13,241)**
**-**
**(13,241)**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**(13,241)**|**Balance at 31**
**March 2023**
**£**
**10,520,091**
**-**|
|---|---|---|---|---|---|
||||||**10,520,091**|
||||||**16,688**
**-**
**26,208**
**-**
**25,775**
**402**
**914,841**
**1,300**
**2,053**
**156,746**
**72,441**
**2,421**|
||||||**1,218,875**|
||||||**11,738,966**|
Page 44
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **20. Statement of funds (continued)**
## **Statement of funds - prior year**
|**_Unrestricted funds_**
**_Designated funds_**
Collaboration working fund
**_General funds_**
General funds
Revaluation reserve
**_Total Unrestricted funds_**
**_Restricted funds_**
IPU
Day Unit
Hospice @ Home
Marie Curie
Sunbeams
OT's & Physios
Clinical Central
Grounds & Gardens
HR
IT
Echo
Retail
**_Total of funds_**|Balance at
1 April 2021
£
11,619
7,608,495
27,125
7,635,620
7,647,239
44,694
914
125,518
50,000
15,313
57
566,454
95,709
2,053
248,000
74,864
2,421
1,225,997
8,873,236|Income
£
-
6,141,512
-
6,141,512
6,141,512
11,874
-
4,398
-
13,897
594
1,626,466
16,052
-
-
-
-
1,673,281
7,814,793|Expenditure
£
-
(4,411,918)
-
(4,411,918)
(4,411,918)
(40,373)
(215)
(103,995)
(50,000)
(240)
(249)
(663,033)
(942)
-
(21,660)
(2,423)
-
(883,130)
(5,295,048)|Transfers
in/out
£
(11,619)
90,347
-
90,347
78,728
-
-
-
-
-
-
(23,232)
(32,176)
-
(23,320)
-
-
(78,728)
-|Balance at
31 March
2022
£
-|
|---|---|---|---|---|---|
||||||9,428,436
27,125|
||||||9,455,561|
||||||9,455,561|
||||||16,195
699
25,921
-
28,970
402
1,506,655
78,643
2,053
203,020
72,441
2,421|
||||||1,937,420|
||||||11,392,981|
Page 45
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **20. Statement of funds (continued)**
Purposes of current year restricted funds are as follows:
IPU - Various donations to support the ongoing work of our Inpatient Unit Day Unit - Donations given specifically to support the Day Unit
Hospice at Home - Various donations given specifically to support the work of the Community Team Marie Curie - Specific donation to support the increased contractual costs of our services commissioned from Marie Curie
Sunbeams - Donations in support of the children's bereavement service
OT's & Physios - Donations to support our complimentary therapy provision
Clinical Central - Grants received from the NHS and from Hospice UK. With regard he Hospice UK grant, NHS England awarded funding to allow the Hospice to make available bed capacity and community support to provide support to people with complex needs in the context of the COVID-19 situation.
Grounds and Gardens - Grants and donations from a variety of source which enable investment into refurbishment projects in our buildings and around our gardens
HR - Donations to support staff, staff welfare and volunteers
IT - Specific NHS Grants to invest in IT infrastructure, IT upgrades and IT developments Echo - Project Echo is an education and support project Retail - Specific donation to support our Retail operations
## **21. Summary of funds**
## **Summary of funds - current year**
|General funds
Restricted funds|**Balance at 1**
**April 2022**
**£**
**9,455,561**
**1,937,420**
**11,392,981**|**Income**
**£**
**5,959,035**
**19,376**
**5,978,411**|**Expenditure**
**£**
**(5,001,057)**
**(618,128)**
**(5,619,185)**|**Transfers**
**in/out**
**£**
**119,793**
**(119,793)**
**-**|**Gains/**
**(Losses)**
**£**
**(13,241)**
**-**
**(13,241)**|**Balance at 31**
**March 2023**
**£**
**10,520,091**
**1,218,875**|
|---|---|---|---|---|---|---|
|||||||**11,738,966**|
Page 46
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **21. Summary of funds (continued)**
## **Summary of funds - prior year**
|Designated funds
General funds
Restricted funds|Balance at
1 April 2021
£
11,619
7,635,620
1,225,997
8,873,236|Income
£
-
6,141,512
1,673,281
7,814,793|Expenditure
£
-
(4,411,918)
(883,130)
(5,295,048)|Transfers
in/out
£
(11,619)
90,347
(78,728)
-|Balance at
31 March
2022
£
-
9,455,561
1,937,420|
|---|---|---|---|---|---|
||||||11,392,981|
## **22. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**_Total_**|**Unrestricted**
**funds**
**2023**
**£**
3,255,744
1,486,831
6,296,352
(518,836)
10,520,091|**Restricted**
**funds**
**2023**
**£**
-
-
1,218,875
-
1,218,875|**Total**
**funds**
**2023**
**£**
**3,255,744**
**1,486,831**
**7,515,227**
**(518,836)**|
|---|---|---|---|
||||**11,738,966**|
Page 47
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **22. Analysis of net assets between funds (continued)**
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Current assets
Creditors due within one year
**_Total_**|Unrestricted
funds
2022
£
3,383,334
6,558,042
(485,815)
9,455,561|Restricted
funds
2022
£
-
1,937,420
-
1,937,420|Total
funds
2022
£
3,383,334
8,495,462
(485,815)
11,392,981|
|---|---|---|---|
## **23. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the year (as per Statement of Financial Activities)
**_Adjustments for:_**
Depreciation charges
Loss on investments
Interest and dividends received
(Profit)/loss on the sale of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**_Net cash provided by operating activities_**|**2023**
**£**
**345,985**
**141,181**
**13,241**
**(21,213)**
**(70,582)**
**3,528**
**751,814**
**33,021**
**1,196,975**|2022
£
2,519,745
127,843
-
(189)
33,840
11,753
(920,419)
(110,475)
1,662,098|
|---|---|---|
Page 48
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **24. Analysis of cash and cash equivalents**
|Cash at bank and in hand
Investment portfolio cash
**_Total cash and cash equivalents_**|**2023**
**£**
**6,769,350**
**145,880**
**6,915,230**|2022
£
6,994,243
-|
|---|---|---|
||||
|||6,994,243|
## **25. Analysis of changes in net debt**
|Cash at bank and in hand|**At 1 April**
**2022**
**£**
**6,994,243**
**6,994,243**|**Cash flows**
**£**
**(224,893)**
**(224,893)**|**At 31 March**
**2023**
**£**
**6,769,350**|
|---|---|---|---|
||||**6,769,350**|
## **26. Pension commitments**
The Hospice is an approved provider of the NHS defined benefits pension scheme and makes a 14.38% employers contribution for all staff who are members of the scheme. There is no liability on the Hospice for any short-fall of assets in the scheme either in the short or long term, our only commitment is to the monthly contribution of 14.38% of pensionable salaries. At 31 March 2023, outstanding contributions payable within this scheme were £18,841 (2022: £18,509).
In February 2012 a defined contributions pension scheme was made available to staff on a Hospice contract of employment. The maximum contribution payable by the Hospice is 6%. At 31st March 2023, outstanding contributions payable within this scheme were £4,180 (2022: £4,547). The Hospice also runs an auto enrolment scheme, outstanding contributions as at 31 March 2023 were £7,221 (2022: £5,331).
Page 49
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **27. Operating lease commitments**
At 31 March 2023 the charitable company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**2023**
**£**
**74,220**
**159,394**
**-**
**233,614**|2022
£
55,126
92,656
7,750|
|---|---|---|
||||
|||155,532|
## **28. Related party transactions**
During the year Helen Jackson, the spouse of Robert Jackson, Trustee, was employed as a bank staff nurse at the Hospice and received remuneration of £25,904 (2022: £19,557). This remuneration is paid on the same terms as other bank staff.
During the year recruitment services were received from Human (Yorkshire) Limited, of which Amy Stephenson is a director. Of the £9,600 paid in total during the year for these services, £4,800 has been paid since Amy Stephenson's appointment as a trustee of The Rotherham Hospice Trust in October 2022.
## **29. Controlling party**
The company is controlled by its members. No individual member has overall control.
Page 50
Registered number: 02234222 Charity number: 700356
## **THE ROTHERHAM HOSPICE TRUST**
**(A company limited by guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## CONTENTS
||Page|
|---|---|
|**Reference and administrative details of the charitable company, its Trustees and advisers**|1 - 2|
|**Trustees' report**|3 - 20|
|**Independent auditor's report on the financial statements**|21 - 24|
|**Statement of financial activities**|25|
|**Balance sheet**|26|
|**Statement of cash flows**|27|
|**Notes to the financial statements**|28 - 50|
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS _FOR THE YEAR ENDED 31 MARCH 2023_
|**Trustees**|Bruce Warner,Chair from 11 October 2023|
|---|---|
||William Patterson,Chair to 11 October 2023(resigned 11 October 2023)|
||Dr Richard F Daly,Joint Vice Chair|
||Jacqueline Saunders,Joint Vice Chair|
||Nicholas Brushett|
||Paula Carter(formerlyWood)|
||Julie Gill|
||Steven Lilley|
||KerryMcGrath(resigned 17 September 2023)|
||AmyStephenson(appointed 5 October 2022,resigned 14 August 2023)|
||James Locking (appointed 7 June 2023)|
||KayChapman(resigned 7 November 2022)|
||Jane Gillings(resigned 9 December 2022)|
||Robert Jackson(resigned 23 March 2023)|
||Sarah Valentine-Bull(resigned 23 May2023)|
|**Company registered**
**number**
02234222
**Charity registered number**
700356
**Registered office**
Rotherham Hospice
Broom Road
Rotherham
S60 2SW
**Patron**
The Countess of Scarbrough
**Vice President**
Alan Hartley
**Executive Team**
Sally Napper (Chief Executive) (retired 7 June 2023)
Mat Cottle-Shaw (Chief Executive) (appointed 3 July 2023)
Tracey Craggs (Director of Clinical Services) (appointed 20 June 2022)
Andrew Pepper (Director of Finance)
Tamsin Dunkerley (Director of Human Resources)
Stephen King (Director of Income Generation & Communications)
**Independent auditor**
BHP LLP
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD||
Page 1
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
|**Bankers**|HSBC|
|---|---|
||35 College Street|
||Rotherham|
||S65 1AF|
||Co-Operative Bank|
||2nd Floor|
||1 Balloon Street|
||Manchester|
||M60 4EP|
|**Solicitors**|Chadwick Lawrence|
||13 Railway Street|
||Huddersfield|
||HD1 1JS|
|**Investment Managers**|Charles Stanley and Co Ltd|
||7 Park Row|
||Leeds|
||LS1 5HD|
Page 2
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT
_FOR THE YEAR ENDED 31 MARCH 2023_
The Trustees (who are also Directors of the charity for the purposes of the Companies Act) present their report and the audited financial statements of the charity for the year ended 31 March 2023. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” FRS102 in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011 and 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 published October 2019.
## _**OUR PURPOSE AND ACTIVITIES**_
## **Purpose**
The charity’s objects as set out in the revised memorandum and articles which were adopted on 24th August 2015 are to promote the relief of sickness by such charitable means as the Association shall from time to time think fit, and in particular (but without prejudice to the generality of such objects):
- A. To establish, maintain and operate Hospices, residential nursing homes and clinics in England or Wales for the reception and care of persons of either sex who are suffering from any illness, disability, disease or other infirmity whether physical or mental and by providing medical or other treatment and attention for any such persons as aforesaid either in their own homes, their current place of care or at any institution of the Association
- B. To conduct or promote research into the care and treatment of persons suffering from any such illness, disability, disease or infirmity as aforesaid and particularly into the care and treatment of persons suffering from any terminal illness and to disseminate the results thereof to the public
- C. To promote or assist in the teaching or training of doctors, nurses, physiotherapists and other persons engaged in any branch of medicine, surgery, nursing or allied services and in the teaching or training of students in any branch of medicine, surgery, nursing or allied services.
- D. To provide or assist the provision of spiritual support and guidance for any person’s resident (either as patients or otherwise) or working in any such home or homes as aforesaid.
- E. The aim of the charity is to provide a range of palliative care services within Rotherham Borough and we are the only Hospice for adults serving all people in Rotherham with a terminal illness.
In 2022/2023, the Board updated the vision and mission statements (for the period to 2027) as follows:
|Vision|We will provide the people of Rotherham with exceptional
Palliative and End of Life Care, by working collaboratively
and engaging with the community to drive forward services
in South Yorkshire|
|---|---|
|Mission|We wil achieve this through:
•High quality care
•Leadership and influencing
•Ongoingsustainability|
Page 3
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **OUR PURPOSE AND ACTIVITIES (continued)**
## **How Our Activities Provide Public Benefit**
## **OUR SERVICES**
Rotherham Hospice provides specialist palliative care to adults in Rotherham who have any progressive life limiting illness. The Hospice is independent of the NHS and is a registered charity. There is no charge for our services. The Hospice is commissioned by the NHS South Yorkshire Integrated Care Board Rotherham Place to deliver some services on behalf of the NHS.
The Hospice aims to enhance the quality of life for patients in line with their wishes and needs through providing or influencing services for patients through the changing phases of illness. We do not provide long term care or respite care for patients.
Patients are referred to the Hospice by a number of clinicians these can include GP’s, Consultants from the acute hospitals, district nursing, Macmillan, nurses and therapists.
As a Hospice, we provide specialist palliative care which is delivered as part of a pathway designed to wrap around the patient’s needs by a multi-disciplinary team with a holistic approach who aim to support the patients to lead a purposeful and fulfilling life in their own home or in the Hospice. The services provided include:
- 24-hour inpatient care for symptom control and end of life care
- Community clinical nurse specialist care (including 24/7 advice and guidance line)
- Hospice at Home
- Physiotherapy
- Occupational therapy
- Palliative Medicine
- Adult bereavement
- Sunbeams – children & young people bereavement
- Adult counselling
- Day Hospice, a range of clinical and non-clinical services
Trustees acknowledge the importance of the whole Hospice team in the successful delivery of patient care which includes the income generation team, support services and other staff and volunteers.
Page 4
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## _**Strategic report**_
## _**Achievements and performance**_
Rotherham Hospice is an independent charity working as part of the health and social care system in the Borough of Rotherham. The Hospice is playing an active role within the South Yorkshire Integrated Care System working with the other Hospices to ensure that the role of the charities is recognised and incorporated into the new system.
During 2022/23, the Hospice services have remained busy. All the clinical pathways are being reviewed to ensure that we provide a seamless service with other clinical teams focussed on specialist care and support and education for other providers to ensure that patients received appropriate care and support through their patient journey. This work will complete during 2023/24.
The 24/7 Community Service allows an increased level of coordinated support to be provided ensuring that care is provided by the right people in the right place at the right time. This therefore allows appropriate use of our Hospice beds and prevents unnecessary hospital admissions. During 2022/23, the Night Service was provided by a Marie Curie Nursing Team.
We continue to be highly respected with an excellent reputation in the wider community. We have continued to engage with our community; building strong relationships with public and business partners as well as those from the Health and Social Care communities, working to provide an increased strength and independence to support our sustainable growth and independence in the future.
Rotherham Hospice was inspected by the Care Quality Commission in March 2019 and was extremely pleased that our rating improved to ‘Good’ across all domains. We have reviewed our performance against the CQC Key Lines of Enquiry during 2022/23 and instigated quality improvement plans to ensure that we continue to improve our services for patients and families.
## **Inpatient Unit**
The Hospice has a 14 bedded IPU that provides 24/7 specialist palliative, end of life care and emotional support to patients, families and carers that meet individuals needs in line with the plan of care agreed with the person.
Our single rooms have been invaluable in enabling the Hospice to maintain standards for single sex accommodation and to meet all infection control and prevention requirements. The single rooms and the layout of the IPU have enabled the Hospice to maintain service provision during the Covid-19 pandemic ensuring the safety of our patients and staff.
Our 14 individual rooms all have en-suite bathroom facilities. During 2022/23 the Inpatient Unit was refurbished following consultation with people who had used the service and the multi-disciplinary team. We received a generous legacy and in partnership with the bereaved family were able to create a dedicated home from home bathroom and shower facility. The Foxglove Suite enables family members to have a dedicated place on unit where they can use the toilet and bathroom facilities whilst being close to their loved ones.
All patients on the IPU have access to the garden and outdoor seating/furniture and most of our bedrooms have direct access outdoor balcony areas and seating for patients and families to use.
Our staff work with patients and families to enable and support them to be able to participate in caring and supporting their loved one as they wish to.
Page 5
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Strategic report (continued)**
## **Achievements and performance (continued)**
During the last year restrictions in respect of the national Covid-19 directions have been in place to enable us to keep patients, families and staff safe. The IPU staff have worked hard with patients and families to ensure that the restrictions were as least restrictive as possible particularly in respect of visiting. Following the national relaxation in restrictions over the course of 2022/23, we have been able to return to open visiting and have lifted some of the restrictions in respect of mask wearing by staff and visitors. We continue to monitor the situation, assess levels of risk and review procedures on a regular basis to ensure the continued safety of our patients and staff.
The Hospice catering facilities are open and available to all patients and families for meals, snacks and hot/cold drinks and there is a kitchen area on the IPU that can be used to make drinks. The Hospice has this year recruited a Chef and the Chef and Head of Service are working closely together to look at how the individual needs and wants of patients and families can be met at all times.
## **Day Hospice and Day Therapies**
During the pandemic the services within the Day Hospice were closed. Some services have been recommenced within Hospice settings as Covid-19 restrictions have been lifted including wreath making and memory boxes, counselling groups and lymphoedema clinics.
In late 22/23, the Deputy Director of Clinical Services commenced work on a strategic plan to re-open the day Hospice. A pilot of potential services was run over a 6-week period which included the provision of medical and nursing clinics and a range of arts/crafts. We are currently looking through feedback received and are seconding staff to lead the progress of the work and aim for this to be provided to patients in the community as well as those attending the Hospice or on IPU.
In preparation for the re-opening of the Day Hospice, the facilities were refurbished to improve the quality of the environment for patients, families and staff. An amazing mural has been added having been hand painted by a local artist.
## **Patient and Family Support Services**
Our Counselling and Clinical Psychology Service is available to patients and their families. Our Bereavement Counselling Service supports bereaved family members or significant others with complex needs and is based at the Hospice. The counsellor can also provide pre-bereavement counselling if needed. The service has continued to operate as an online or telephone service throughout the year.
Our Sunbeams service provides practical and emotional support for children aged 5 and upwards. Sunbeams offers a safe environment for the children to share experiences and address their needs around someone who is seriously ill or the death of a loved one.
## **Community Services**
The Hospice provides a range of community services that are focused on caring for patients with specialist palliative and end of life care needs in their own homes, this includes nursing and care homes.
The community services team cares for patients who have a terminal condition and are within the last year of their lives through a range of pathways. The team have a skilled multi-disciplinary workforce who work collaboratively across all elements of community services responding to patients needs as their condition changes or progresses. The service is led
Page 6
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Strategic report (continued)**
## **Achievements and performance (continued)**
by a team of Clinical Nurse Specialists and the Community Palliative Care Consultant and includes:
- Planned Care
- The Reactive Team
- Advice & Guidance Line
- Hospice at Home
- Marie Curie Service
- Therapy
A range of therapy services is provided to wrap around the community palliative and end of life care, patients both in the Hospice and in the patient’s own home. Occupational therapy and physiotherapy is provided within the IPU and community with a view to supporting mobility and maximising independence. The Hospices current and future occupational therapy and physiotherapy model is be reviewed as part of the clinical services review during 2023/24.
## **Patient Experience**
Feedback from our patients, families and those close to them is hugely important to us so that we can understand their personal experiences and quality of care received. We use this feedback to inform how we can continuously strive to improve the quality of our services.
## **Quality Accounts**
The Hospice is proud to publish Quality Accounts which describes and demonstrates the ways in which we provide high quality specialist palliative care to Rotherham patients who have life limiting conditions, support families and carers and provide bereavement support to adults and children.
Our Quality Accounts enable Rotherham Hospice to show our commitment to maintain and continuously improve the quality of the services we provide to the Rotherham population. We measure our quality by looking at patient safety and learning, patient outcome measures, listening to families and carers experiences and feedback about how we could make improvements.
These are available on the Hospice website.
Page 7
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Strategic report (continued)**
## **ACTIVITY**
The normal operating model for the Hospice was significantly affected in responding to the pandemic and, as such, our normal pattern of activity has changed as we emerge into a post-COVID environment. We have sought to deliver more care in different settings. An example of our activity profile is provided below with prior years provided for comparison.
||**2018/19**|**2019/20**|**2020/21**|**2021/22**|**2022/23**|
|---|---|---|---|---|---|
|Total number of
patients admitted
to the Inpatient
Unit, and total
admissions
including
readmissions|314 patients (386
admissions)|342 patients (406
admissions)|281 patients (318
admissions)|317 patient (372
admissions)|361 patient (383
admissions)|
|Average IPU bed
occupancy %|86.7%|81.6%|61.0%|76.0%|70.0%|
|Percentage of
patients treated
and discharged
for ongoing care
and support|146 out of 365
discharges =
40.0%|156 out of 406
discharges =
38.4%|118 out of 320
discharges =
38.8%|145 out of 372
discharges =
38.9%|84 out of 383
discharges =
22%|
|Number of deaths
in the Inpatient
Unit|219|249|200|220|282|
|Number of
referrals to the
Hospice at Home
team (* revised
from previous
report)|1,124*|1,367*|1,539*|1,589|1,123|
|Number of home
visits by Hospice
at Home team|17,391|14,081|8,934|10,018|8,787|
|Number of
telephone
contacts by
Hospice at Home
team|8,035|8,920|9,934|9,556|9,096|
|Number of video
contacts by the
Hospice at Home
team|0|0|2|1|7|
|Number of new
referrals to
Clinical Specialist
Team|985|1,033|1,138|803|733|
Page 8
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
||**2018/19**|**2019/20**|**2020/21**|**2021/22**|**2022/23**|
|---|---|---|---|---|---|
|Number of
planned face-to-
face visits by the
Clinical Nurse
Specialist Team|2,640|2,205|1,440|2,194|2,068|
|Number of
telephone
contacts by the
clinical nurse
specialist team|4,339|4,041|8,246|6,368|3,824|
|Number of video
contacts by the
Clinical Nurse
Specialist Team|0|0|3|7|3|
|Number of
referrals to the
Adult
Bereavement
Support service
(volunteer led)|Not collected on
SystemOne in the
year|Not collected on
SystemOne in the
year|189|163|153|
|Number of
contacts for the
Adult
Bereavement
Support service
(volunteer led)|Not collected on
SystemOne in the
year|Not collected on
SystemOne in the
year|126 Telephone
47 Face to Face|243 Telephone
43 Face to Face|189 Telephone
405 Face to Face|
|Number of
children who have
been referred to
the Sunbeams
service|Not collected on
SystemOne in the
year|34 (part year)|52|104|198|
|Number of
referrals Adult
Counsellingteam|Not previously
reported|Not previously
reported|98|149|138|
|Number of face-
to-face contacts
by Adult
Counsellingteam|Not previously
reported|Not previously
reported|32|66|349|
|Number of
telephone
contacts by Adult
Counsellingteam|Not previously
reported|Not previously
reported|484|233|1134|
|Number of video
contacts by the
Adult Counselling
team|Not previously
reported|Not previously
reported|6|0|0|
Page 9
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
||**2018/19**|**2019/20**|**2020/21**|**2021/22**|**2022/23**|
|---|---|---|---|---|---|
|Number of
referrals Palliative
Psychologyteam|Not previously
reported|Not previously
reported|101|25|no longer in use|
|Number of face-
to-face contacts
by Palliative
Psychologyteam|Not previously
reported|Not previously
reported|35|17|no longer in use|
|Number of
telephone
contacts by
Palliative
Psychologyteam|Not previously
reported|Not previously
reported|180|22|no longer in use|
|Number of video
contacts by the
Palliative
Psychologyteam|Not previously
reported|Not previously
reported|35|9|no longer in use|
|Number of
referrals Palliative
OT team|297|325|306|373|261|
|Number of home
visits by Palliative
OT team|558|719|404|592|266|
|Number of
telephone
contacts by
Palliative OT team|485|512|686|644|390|
|Number of video
contacts by the
Palliative OT team|0|0|77|19|2|
|Number of
referrals
Physiotherapy
team|322|327|218|218|204|
|Number of home
visits by
Physiotherapy
team|260|274|135|119|159|
|Number of
telephone
contacts by
Physiotherapy
team|250|224|176|186|146|
Page 10
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
||**2018/19**|**2019/20**|**2020/21**|**2021/22**|**2022/23**|
|---|---|---|---|---|---|
|Number of video
contacts by the
Physiotherapy
team|0|0|2|10|0|
|Number of
patients with
Covid 19 treated
in the inpatient
unit|N/A|N/A|31|4|14|
## **RISK MANAGEMENT**
The Trustees have reviewed the major risks to which the charity is exposed and policies, systems and procedures have been established to mitigate those risks, which are set out in the Corporate Risk Register, and the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
The Risk Register is updated routinely and monitored at each of the meetings of the Board of Trustees.
As part of its contractual requirements, the Hospice completes the Data Security and Protection Toolkit (DSP) annually which ensures its data protection policies and procedures are in line with the requirements of the NHS. This is an essential priority for the Hospice in maintaining reputational integrity and delivering the high standards expected of us and to demonstrate that to the public bodies that regulate and fund the Hospice.
Patient safety is our upmost priority. We have bi-monthly Patient Safety and Clinical Risk meetings the second of each month being a combined meeting with Quality and Clinical Effectiveness. These meetings feed into the Governance Committee which meets up to four times a year to receive assurance that clinical matters remain well-managed and operating effectively.
Financial sustainability is a risk which the Hospice continually monitors with monthly reporting in place and a full rootand-branch review of our service offer, retail offer, fundraising activities and back-office functions.
On 7 June 2023, the Trustees received the Corporate Risk Register which included the principal risks and uncertainties that could seriously affect the performance, prospects or reputation of Rotherham Hospice as follows:
- Maintaining the highest standards of quality and patient experience and meeting all our regulatory and contractual bodies requirements (both national and local)
- Ensuring that there is an appropriate clinical workforce in place to deliver services
- Failing to operate in a financially sustainable manner; including increasing demand, increased costs and reduced fundraising income
- Recognising the current cost-of-living increase and its impact on staff and communities
- Managing reserves through an investment portfolio which exposes the Hospice to market changes
- Ensuring that IT connectivity remains in place between the Hospice and the local health partners and developing clinical system expertise
Page 11
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
- Responding to the ongoing demands on economic factors; from a clinical, financial, retail perspective
- Maintenance of Hospice infrastructure and plant
- Managing the impact of pharmacy provision and the difficulties in securing support
- Ensuring that training records are accurate and up to date
## **FINANCIAL REVIEW**
Details of the income and expenditure are given on the page headed "Statement of Financial Activities". In the year ended 31 March 2023, overall income exceeded expenditure by £346k (last year £2.5m), being comprised of a surplus in Unrestricted Funds of £1.1m (last year surplus £1.8m) and a deficit in Restricted Funds of £0.7m (last year surplus £0.7m). This pattern reflects the Hospice utilising its Restricted Funds built up over the previous years in order to provide services and investment.
The ability of the Hospice to report a surplus reflects both partnership working within our local health system and the generosity of our local population and local businesses in difficult economic circumstances. Thank you to everyone who supports the Hospice.
Unrestricted Funds represent reserves which the Hospice can use to run its services safely and effectively on an ongoing basis, whereas Restricted Funds represent specific donations ascribed to a specific purpose. These are detailed in a note to the accounts. Whilst every donation is important to the Hospice, we encourage donors to make donations on an unrestricted basis to enable the Trustees to have maximum flexibility to invest resources in services.
Total income for the year amounted to £6.0m (last year £7.8m). This reduction in income responds to the economic pressure being felt in the health system, local businesses and in the pocket of every household in Rotherham. Income from the NHS Rotherham CCG contributed around 60% our total income. Income from Donations - including In Memorium Donations - were gratefully received and amounted to £444k (last year £465k). Legacies were also gratefully received to the value of £545K (last year £1.0m). We are very grateful to those individuals and families who remember the Hospice in their Wills.
Income from trading activities which includes Lottery, Events, Corporate Fundraising and Retail provided £1.2m (last year £1.2m) of support. We are very grateful to the public who both donate and purchase pre-loved goods through our retail outlets which have seen an increase in revenues over the last 12 months.
During the year, we spent £5.6m (although our underlying cost base is £6.4m); which equates to nearly £18,000 every single day.
Nevertheless, we spend more than 80% of our income on patient care with the remainder on raising funds (including running events, keeping shops open and supporting our fundraising team).
With regard to financial indicators, our net assets of £11.7m (last year £11.4m) have improved during the year which includes the introduction of an investment portfolio. Unrestricted Funds are £10.5m (last year £9.5m) and Restricted Funds are £1.2m (last year £1.9m).
Looking ahead into an uncertain economic climate, we will do all we can to ensure that we maximise our fundraising and retail income, work with our NHS and non-NHS colleagues to attract more funding, manage our costs in a mature and disciplined manner and connect with our local population and businesses to ensure that we have a thriving financial
Page 12
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
position to continue to provide care for patients both in the near term and the long term future.
However, having a cost base which is greater than income means that we are at risk of spending more money than we have coming in each year. This means that we will be depleting our reserves and that every single day we are spending more on services for patients than we have coming in.
In these difficult times, we are grateful to our local population and business for their continued support. Your donations make all the difference, however large or small, and we could not run our much-needed services for our patients and your families without you. Thank you.
## **INVESTMENTS**
During the year, the Trustees reviewed the opportunities for establishing an external investment portfolio and - whilst recognising the risks of the markets in that investment values can go down and up - approved that a portfolio was established. This outcome reflected a journey of the Trustees over 18 months to consider how the Hospice cash reserves could be better utilised.
This process included:
- Updating the Reserves Policy (see below)
- Updating the Terms of Reference for the Finance and Income Generation Committee to ensure they contained necessary remit to oversee investments.
- Creating and adopting an Investment Policy
- Appointing an Investment Manager - whereby Charles Stanley and Co Ltd were appointed as professional investment advisers
- Considering and adopting an overall approach to portfolio objectives and risk whereby an “overall return” approach was adopted along with a “low-medium” risk portfolio
- Considering an approach to Environmental, Social and Governance (ESG) criteria for the portfolio
- Reviewing and agreeing the amount of cash to be invested – which was agreed as £1.5m.
Some key Investment Objectives were agreed:
- To seek to produce the best financial return within an acceptable level of risk, whilst utilising the expertise of the Investment Manager who operates in accordance with industry best practice.
- To generate a total return in excess of inflation over the long term whilst generating an income to support on-going activities.
- In this context, ‘long term’ is taken to be a period of 10 years or more and ‘medium term’ is taken to be 3-5 years.
The investment objective for the short-term reserves is to preserve the capital value with a minimum level of risk. Assets should be readily available to meet cash flow requirements.
The cash transfers were made to Charles Stanley and Co Ltd from January 2023 to March 2023 and the total value of the portfolio at 31 March 2023 was £1,486,831.
Page 13
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **RESERVES POLICY**
During the course of 2022-23, the Trustees reviewed the Reserves Policy to ensure that the level of reserves enable the Hospice to maintain and invest in frontline services to maintain a high level of quality and further develop our offer; particularly in the contact of current economic conditions
The Trustees have adopted a risk-based approach to managing the reserves of the charity following the framework issued by the Charity Commission in guidance CC19. The objective is to maintain sufficient reserves for managing short to medium term risk against continuing to invest in frontline services to maintain a high level of quality and further develop our offer.
Given the perceived financial uncertainty, Trustees considered the need to provide stakeholders with the reassurance about both the continuation and development of services for the longer term and where necessary withstand deficit budgets given the unpredictability of legacy and donations or sudden unanticipated expenditure. Trustees feel it prudent to carry unrestricted reserves equivalent to six months operational activity.
Reserves are held in a mixture of cash and investments to ensure sufficient liquidity is maintained whilst maximising return within the agreed levels of risk. Cash amounting to three month’s operational costs will always be held on instant access.
|Reserves Policy|Measure|Actual|
|---|---|---|
|Operational Costs for 6 months held in
free reserves|£3.2m|£7.2m|
|Operational Costs for 3 months held in
instant access cash|£1.6m|£6.9m|
The Hospice has maintained a favourable position against its Reserves Policy and Trustees will review the reserves policy regularly as required.
Free reserves as at 31 March 2023 totalled:
**£** Unrestricted reserves excluding pension liability 10,520,091 less: Fixed assets (3,255,744) Free reserves 7,264,347
## **INCOME GENERATION**
Thank you to our supporters who have remained loyal and have continued to donate generously throughout 2022/2023. Despite economic challenges that were compounded by war in Ukraine and the cost-of-living crisis, our loyal base of supporters have continued to donate, volunteer and raise funds for Rotherham Hospice.
Outsourcing of the lottery has been a huge success and the numbers of players has increased for the first time in several years. We will continue to work closely with our partners, Local Hospice Lottery, to ensure our players receive the highest level of service and all opportunities are explored in order to achieve a high value, high quality product.
Our events portfolio returned has continued to grow. The public now seem to have confidence in returning to mass participation events. The “Light Up a Life” event achieved its highest ever income figure with a record number of people attending services at the Hospice and Rotherham Minster.
Page 14
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED) _FOR THE YEAR ENDED 31 MARCH 2023_
In retail, our shops have had a very successful year. The hard work of our shop managers and volunteers cannot be overlooked, neither can the contribution of our generous donors. The shops provide a vital link between the Hospice and the local community, creating a space where people of all backgrounds can come together.
The difficult decision to remove 3 shops from our portfolio during the year was driven by the need to ensure that the deployment of our resources provided value for money. Despite the reduction in premises, we have seen a significant growth in our net position across retail. Our community-based shops will continue to offer value for money goods, volunteer opportunities and a sustainable model where the public can recycle their pre-loved goods.
## **FUNDRAISING STATEMENT**
All fundraising activities are directly managed by the Hospice. We are committed to the highest standards of fundraising practice, and all our activities are carried out in an ethical manner.
Rotherham Hospice is registered with the Fundraising Regulator and adheres to the standards set out in the Code of Fundraising practice. Our policies, procedures, systems, and processes have been reviewed and updated in line with General Data Protection Legislation (GDPR).
The Hospice has never and will never share or sell details of our donors.
During the year we had no fundraising complaints. We protect the public from undue pressure by following the Code of Fundraising Practice as set out by the Fundraising Regulator.
## **TECHNOLOGY AND CYBER SECURITY**
The Hospice is supported by professional expertise to provide its IT infrastructure, equipment and telephony, Microsoft environment and data protection and routinely convenes a Digital and Technology Forum which engages key digital experts and partners to work collaboratively to support the Hospice and progress along a digital journey. The Forum includes both NHS and non-NHS partners as well as Information Governance expertise.
Technology resilience, technology enhancement and cyber-security are essential to make sure our information about what we do, the people we support, staff and our volunteers, is effective and protected. The Digital and Technology Forum is working with the Hospice to improve our infrastructure, make the most of new advancements and identify a path to cyber essentials.
In June 2023, the Hospice submitted a compliant Data Security and Protection Toolkit, which provides assurance that arrangements are in place to safely process data in line with the NHS contract enabling connection to NHS systems.
## **SUSTAINABILITY**
Rotherham Hospice is committing to doing all we can over the next five years to make the Hospice a more sustainable place.
In 2023, we commissioned an audit of our energy usage and received a report on what we are doing well and areas we could develop.
From this we have already started trying to make our services as sustainable as possible by recycling office waste, reducing the amount of waste from our shops, setting up a sustainability group to discuss ideas, and encouraging staff to share tips and produce from home growing.
Page 15
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
But we still have more we want to achieve. Our goal is to deliver the best possible care whilst adopting and maintaining the following principles of a greener hospice:
- Energy efficiency
- Waste reduction
- Reuse of items throughout the hospice
- Promotion of recycling/zero landfill
- Buying local where possible
- Encouraging staff involvement
## **PLANS FOR FUTURE PERIODS**
The Board has undertaken work to revise the Corporate Strategy which included a review of its Mission Statement, Vision, Values and Corporate Strategic Objectives.
The vision and values have been revisited to ensure that they maintain a focus for staff and volunteers about how our services are provided.
We will continue to be the key specialist provider for Palliative and End of Life services for adults across the Borough of Rotherham
## **Corporate Strategic Objectives 23/24**
- Establish ourselves as a provider of outstanding care for patients and their families & friends within Rotherham in line with the national standards for palliative care and the fundamental standards of the Care Quality Commission
- Spend less, raise more and get better value – address our £2,000 a day overspend to ensure we have enough in the bank to run the Hospice
- Reduce our carbon footprint by 25% by 2027 – taking every opportunity to go green
- Developing our people to be the best that they can be to provide high quality care for our patients and families, focusing on Performance, Learning & Development and Recruitment & Retention
## **Values**
Page 16
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **ACKNOWLEDGEMENTS**
Trustees would like to acknowledge Lady Scarbrough’s ongoing role as our patron.
Trustees would like to acknowledge John Breckin in his ongoing role as a Hospice Ambassador.
In the current financial climate The Board of Trustees are grateful to all who continue to support the work of the Hospice across all areas of clinical services, retail and income generation
## **VOLUNTEERS**
Trustees would like to thank the wonderful team of volunteers who have given so much of their time, support, enthusiasm, compassion and care over the years. We currently have 94 volunteers.
## _**Structure, governance and management**_
## **Governing Document**
Rotherham Hospice is registered as a charity with the Charity Commission. Anyone over the age of 18 can be a member of the Company, there are currently 33 members. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. It is also registered as a company limited by guarantee, without a share capital. Its governing instrument is its Memorandum and Articles of Association dated 10 June 2013, updated on the 24 August 2015.
In all cases, the Chair, Trustees and the Chief Executive form part of the formal interview process for prospective Trustees. In some cases, the use of an agency will be used to support the recruitment of Trustees.
Trustees confirm their eligibility to act as a Trustee of a charity (under the provisions of the Charities Acts 1992 and 1993) and complete several additional checks which satisfy the standards set by the Care Quality Commission. The appointment is confirmed following the completion and return of an Enhanced DBS check, confirmation of any Declaration of Interest completed.
The Mandatory Training Plan for Trustees has been redesigned and wider access to development through Hospice UK.
None of the Trustees receive remuneration or any other benefit for their role as a Trustee of the Charity. Any connection between a Trustee or senior manager of the Charity, with a third party or other organisation, must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. Any related party transactions are disclosed at note 28 of the accounts.
## **Organisational Structure and Management**
The Board Manual sets out the governance structure of the Hospice. Trustees are responsible for strategic leadership and govern the work of the Hospice. The Trustees are, for the purposes of the Companies Act, equivalent to Directors. The Board meets regularly, generally every three months, with most of the Trustees attending the meetings. Meetings have been held both in person and remotely (using MS Teams) or mixed.
The Board operates with three Committees, being the Finance and Income Generation Committee, the Clinical and Corporate Governance Committee and the Human Resources Committee. Each of the Committees has Trustee and management representation and is chaired by a Trustee.
Page 17
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Structure, governance and management (continued)**
The Board operates a scheme of delegation and the operational management is delegated to the Chief Executive and the Executive Team. We will also welcome a new Chief Executive in the summer of 2023 as our former Chief Executive leaves.
We are pleased to report that following a period of Trustee and Executive turnover in the previous year, we have remained broadly stable. We continue to actively look to recruit Trustees who can provide knowledge and experience which support the running of the Hospice.
The Executive Directors report to the Board of Trustees at each Board meeting and are actively part of all Board Committees.
The Hospice is commissioned by NHS South Yorkshire Integrated Care Board (ICB), to deliver a range of palliative care services to people affected by terminal illness. The Board assures that the Hospice fulfils the requirements of the NHS contract through the Corporate and Clinical Governance Committee. The Board maintains a robust governance framework to monitor, review and ensure compliance with all regulatory and best practice standards established by national regulators (Care Quality Commission, Law Commission, Charity Commission and NHS England) and local regulators (NHS South Yorkshire ICB). In addition, the Board maintains close working relationships with a range of stakeholders including the Rotherham PLACE Board, The Rotherham Hospitals NHS Foundation Trust; as well as a range of local care providers including care homes, bereavement support charities, patients, public and volunteers.
The Hospice is also working collaboratively with other South Yorkshire Hospices, and this is continuing to progress. There will be some key opportunities going forward initially through the work around transition of care for children and young people.
Until the impact of the pandemic, the Trustees were regularly undertaking both formal unannounced audits and informal visits to the Hospice.
The Board also monitors national developments in the health and social care environments to ensure that the Hospice is fit to respond to future opportunities and challenges in palliative care.
## **Pay policy for Senior Staff**
The Board of Directors, who are the Trust’s Trustees, give of their time freely and no director received remuneration for their role as Trustee in the year. Details of Trustee Remuneration and Related Party Transactions are disclosed in note 12 to the accounts.
The Executive Directors are the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day-to-day basis alongside a wider senior management team. The remuneration of the Executive Team and the senior staff is reviewed against the marketplace for Hospice Executives from time to time by the HR Committee who make recommendations to the Board of Trustees.
The Trustees have considered and reviewed the pay and associated benefits for staff. The first pay award for staff after a few years of pay-freeze came in April 2019 with a 1% award. During the 20/21 year, the Hospice agreed a non-recurrent / non-consolidated award to staff of 2% to recognise the hard work and commitment during such a difficult period. From 1 April 2021, the Trustees agreed a 3% pay award to staff which represented the largest single pay award for many years. From April 2022, the Trustees agreed a 4.25% pay award to staff as well as reflecting the hourly rate of the Real Living Wage at that time for our lowest paid staff. This initiative is supporting staff through the current financial impact of the economy. For completeness, in March 2023, Trustees agreed a one-of payment to staff to provide some additional
Page 18
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Structure, governance and management (continued)**
support through the cost-of-living crisis; and agreed a 4% pay award as well as continuing to match the hourly rate of the Real Living Wage for our lowest paid staff.
During the year, the Hospice sought to respond to the cost-of-living crisis which continues to affect and introduced a number of initiatives including:
- Café menu prices reduced by 50% for staff
- Travel reimbursement increased from 45p to 55p per mile.
- Information & advice re cost-of-living support provided via newsletter
- Providing an additional one-off cost of living supplement payment in March 2023
- Providing a pay award increase from 1 April 2023 Proposal for pay review for 2023/24
## **Statement of Trustees' responsibilities**
The Trustees (who are also directors of The Rotherham Hospice Trust for the purposes of Company Law) are responsible for preparing the Report of the Trustees (including the Strategic 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, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP 2019 (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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 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.
Page 19
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
TRUSTEES' REPORT (CONTINUED)
_FOR THE YEAR ENDED 31 MARCH 2023_
## **Disclosure of information to auditor**
In so far as the Trustees are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware; and
- The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Auditor**
The auditor, BHP LLP, has indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
In approving the Trustees' report, we also approve the Strategic Report included therein, in our capacity as company directors.
Approved by order of the members of the board of Trustees and signed on their behalf by:
## BAWarner
BAWarner (Nov 1, 2023 13:58 GMT)
**Bruce Warner** (Chair of Trustees) Date: Nov 1, 2023
Page 20
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ROTHERHAM HOSPICE TRUST
We have audited the financial statements of The Rotherham Hospice Trust (the ‘charitable company’) 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 statements, including 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 trustees' report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the trustees' 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.
Page 21
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ROTHERHAM HOSPICE TRUST (CONTINUED)
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees' report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the 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 strategic report and the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **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.
## **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 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.
Page 22
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ROTHERHAM HOSPICE TRUST (CONTINUED)
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:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the group through discussions with trustees and other management, and from our commercial knowledge and experiences of the charities sector;
- we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Charities Act 2011, Companies Act 2006, taxation legislation and data protection, employment and health and safety legislation (including CQC documentation);
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence throughout;
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
- making enquiries of management and trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risks of fraud through management bias and override controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 1(s) were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance; and
- enquiring of management as to actual and potential litigation and claims.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the
Page 23
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ROTHERHAM HOSPICE TRUST (CONTINUED)
more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 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.
## Jane Marshall (Nov 14, 2023 14:55 GMT)
Jane Marshall (Senior Statutory Auditor)
for and on behalf of
## **BHP LLP**
Statutory Auditor 2 Rutland Park Sheffield S10 2PD
Date: Nov 14, 2023
Page 24
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) _FOR THE YEAR ENDED 31 MARCH 2023_
|**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
**Total income**
**Expenditure on:**
Raising funds
8
Charitable activities
9
**Total expenditure**
**Net income/(expenditure) before net**
**losses on investments**
Net losses on investments
16
**Net income/(expenditure)**
Transfers between funds
20
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2023**
**£**
**971,878**
**3,643,008**
**1,204,778**
**21,213**
**118,158**
**5,959,035**
**733,812**
**4,267,245**
**5,001,057**
**957,978**
**(13,241)**
**944,737**
**119,793**
**1,064,530**
**9,455,561**
**1,064,530**
**10,520,091**|**Restricted**
**funds**
**2023**
**£**
**16,376**
**3,000**
**-**
**-**
**-**
**19,376**
**16,063**
**602,065**
**618,128**
**(598,752)**
**-**
**(598,752)**
**(119,793)**
**(718,545)**
**1,937,420**
**(718,545)**
**1,218,875**|**Total**
**funds**
**2023**
**£**
**988,254**
**3,646,008**
**1,204,778**
**21,213**
**118,158**
**5,978,411**
**749,875**
**4,869,310**
**5,619,185**
**359,226**
**(13,241)**
**345,985**
**-**
**345,985**
**11,392,981**
**345,985**
**11,738,966**|Total
funds
2022
£
1,483,774
5,052,424
1,219,985
189
58,421|
|---|---|---|---|---|
|||||7,814,793|
|||||964,639
4,330,409|
|||||5,295,048|
|||||2,519,745
-|
|||||2,519,745
-|
|||||2,519,745|
|||||8,873,236
2,519,745|
|||||11,392,981|
The statement of financial activities complies with the requirements for an income and expenditure account under the Companies Act 2006 and includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Page 25
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
REGISTERED NUMBER: 02234222
## BALANCE SHEET
_AS AT 31 MARCH 2023_
|**Note**
**Fixed assets**
Tangible assets
15
Investments
16
**Current assets**
Stocks
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
**Net current assets**
**Total assets less current liabilities**
**Total net assets**
**Charity funds**
Restricted funds
20
Unrestricted funds (includes revaluation reserve
of £nil (2022: £27,125))
20
**Total funds**|**15,509**
**730,368**
**6,769,350**
**7,515,227**
**(518,836)**|**2023**
**£**
**3,255,744**
**1,486,831**
**4,742,575**
**6,996,391**
**11,738,966**
**11,738,966**
**1,218,875**
**10,520,091**
**11,738,966**|19,037
1,482,182
6,994,243
8,495,462
(485,815)|2022
£
3,383,334
-|
|---|---|---|---|---|
|||||3,383,334
8,009,647|
|||||11,392,981|
||||||
|||||11,392,981|
|||||1,937,420
9,455,561|
||||||
|||||11,392,981|
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 were approved and authorised for issue by the Trustees and signed on their behalf by:
## BAWarner
BAWarner (Nov 1, 2023 13:58 GMT)
## **Bruce Warner**
(Chair of Trustees) Date: Nov 1, 2023
The notes on pages 28 to 50 form part of these financial statements.
Page 26
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## STATEMENT OF CASH FLOWS
_FOR THE YEAR ENDED 31 MARCH 2023_
|**Note**
**Cash flows from operating activities**
Net cash provided by operating activities
23
**Cash flows from investing activities**
Interest and dividends received
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Purchase of investments
**Net cash used in investing 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**
24|**2023**
**£**
**1,196,975**
**21,213**
**210,000**
**(153,009)**
**(1,354,192)**
**(1,275,988)**
**(79,013)**
**6,994,243**
**6,915,230**|2022
£
1,662,098
189
1,750
(91,689)
-
**(89,750)**
**1,572,348**
5,421,895
6,994,243|
|---|---|---|
Page 27
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies**
## _**1.1 Basis of preparation of financial statements**_
The Rotherham Hospice Trust is registered as a company limited by guarantee, without a share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered office is given in the charity information on page 1 of these financial statements.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts inaccordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## _**1.2 Going concern**_
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
Page 28
**THE ROTHERHAM HOSPICE TRUST**
**(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies (continued)**
## _**1.3 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.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees’ Report.
Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.
Gifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impracticable to fair value the items due to the volume of low value items they are not recognised in the financial statements until they are sold. This income is recognised within ‘Income from other trading activities’.
For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
The charity receives government grants in respect of charitable activities and captial expenditure. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
Investment income is earned through holding assets for investment purposes such as shares and property,
Page 29
**THE ROTHERHAM HOSPICE TRUST**
**(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies (continued)**
## _**1.3 Income (continued)**_
which includes interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.
## _**1.4 Expenditure**_
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- The costs of raising funds relate to purchase of promotional goods, cost of running the retail outlets, cost of events, publicity and lottery prizes and running costs.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and
- services for its beneficiaries. It includes both costs that can be directly allocated to such activities and those costs of an indirect nature necessary to support them.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
## _**1.5 Tangible fixed assets and depreciation**_
Tangible fixed assets costing £500 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 (or deemed cost) or valuation. 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% straight line|
|---|---|
|Long-term leasehold property|- straight line over shorter of lease period and 50|
||years|
|Motor vehicles|- 25% reducing balance|
|Equipment and computers|- 5%, 20%, 15% & 33% straight line|
Page 30
**THE ROTHERHAM HOSPICE TRUST**
**(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies (continued)**
## _**1.6 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.
## _**1.7 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. Donated stocks are included based on values of donated good sales in the first two weeks after the year end.
## _**1.8 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.
## _**1.9 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.
## _**1.10 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.
## _**1.11 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.
Page 31
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **1. Accounting policies (continued)**
## _**1.12 Operating leases**_
Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.
## _**1.13 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.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the 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.
## _**1.14 Employee benefits**_
When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The charitable company operates two defined contribution pension schemes and the pension charges represents the amount payable by the charitable company to the funds in respects of the year.
## _**2.**_ **Critical accounting estimates and areas of judgment**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Page 32
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **3. Income from donations and legacies**
|**_Donations_**
General donations
In memoriam
Charitable trusts
Collection boxes
Give as you earn
Gift aid
**_Total donations_**
Legacies
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
190,726
192,062
-
8,033
43
46,370
437,234
534,644
971,878
1,416,959|**Restricted**
**funds**
**2023**
**£**
5,296
-
1,080
-
-
-
6,376
10,000
16,376
66,815|**Total**
**funds**
**2023**
**£**
**196,022**
**192,062**
**1,080**
**8,033**
**43**
**46,370**
**443,610**
**544,644**
**988,254**
1,483,774|Total
funds
2022
£
201,190
208,735
-
5,409
-
50,059|
|---|---|---|---|---|
|||||465,393|
|||||1,018,381|
|||||1,483,774|
||||||
## **4. Income from charitable activities**
|RCCG Standard Contract
RCCG Contract variation for specific activities
Hospice UK
Other direct delivery funding
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
3,531,569
-
-
111,439
3,643,008
3,445,958|**Restricted**
**funds**
**2023**
**£**
-
-
3,000
-
3,000
1,606,466|**Total**
**funds**
**2023**
**£**
**3,531,569**
**-**
**3,000**
**111,439**
**3,646,008**
5,052,424|Total
funds
2022
£
3,348,158
1,000,000
607,041
97,225|
|---|---|---|---|---|
|||||5,052,424|
||||||
Page 33
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **5. Income from other trading activities**
|Lottery income - gross of prizes & commissions
Events
Corporate fundraising
Catering income
Sale of promotional goods
Sales of donated goods - shops
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
283,621
212,784
24,000
25,084
52,971
606,318
1,204,778
1,219,985|**Total**
**funds**
**2023**
**£**
**283,621**
**212,784**
**24,000**
**25,084**
**52,971**
**606,318**
**1,204,778**
1,219,985|Total
funds
2022
£
436,850
184,638
620
12,410
53,876
531,591|
|---|---|---|---|
||||1,219,985|
|||||
## **6. Investment income**
|Dividends from listed investments
Bank and building society interest receivable
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
180
21,033
21,213
189|**Total**
**funds**
**2023**
**£**
**180**
**21,033**
**21,213**
189|Total
funds
2022
£
-
189|
|---|---|---|---|
||||189|
|||||
Page 34
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **7. Other income**
|Coronavirus support grants
Insurance refund
Profit on sale of assets
Other income (Hospice UK)
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
-
125
70,582
47,451
118,158
58,421|**Total**
**funds**
**2023**
**£**
**-**
**125**
**70,582**
**47,451**
**118,158**
58,421|Total
funds
2022
£
58,001
420
-
-|
|---|---|---|---|
||||58,421|
|||||
Page 35
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **8. Expenditure on raising funds**
|Lottery prizes & commissions
Lottery running costs including salaries
Direct cost of events including salaries
Shop running costs including salaries
Shop depreciation
Employers' pension - lottery and retail
Purchase of promotional goods
Fundraising indirect costs
Investment management fees
Allocation of support costs (note 10)
Total 2022|**Unrestricted**
**funds**
**2023**
**£**
11,344
31,823
6,253
395,455
10,442
4,514
13,206
164,219
108
96,448
733,812
964,639|**Restricted**
**funds**
**2023**
**£**
-
-
-
-
-
-
-
16,063
-
-
16,063
-|**Total**
**funds**
**2023**
**£**
**11,344**
**31,823**
**6,253**
**395,455**
**10,442**
**4,514**
**13,206**
**180,282**
**108**
**96,448**
**749,875**
964,639|Total
funds
2022
£
113,323
82,509
34,684
471,291
15,293
6,335
10,011
109,520
-
121,673|
|---|---|---|---|---|
|||||964,639|
||||||
Page 36
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **9. Charitable activities - patient care**
||**Unrestricted**
**funds**|**Restricted**
**funds**|**Total**
**funds**|Total
funds|
|---|---|---|---|---|
||**2023**|**2023**|**2023**|2022|
||**£**|**£**|**£**|£|
|Contracted medical servicesprovided byNHS|441,143|-|**441,143**|417,875|
|Salaries and NI|2,169,935|493,081|**2,663,016**|2,438,983|
|Pension contributions|164,981|1,381|**166,362**|160,711|
|Staff costs includingtravel|27,824|9,786|**37,610**|6,270|
|Marie Curie staffingcost|168,338|39,924|**208,262**|205,974|
|Estates costs (general repairs, maintenance &
security)|68,623|5,165|**73,788**|65,782|
|Utilities and Insurance|126,022|19,193|**145,215**|87,160|
|Direct consumables and deliveryincidentals|203,549|16,056|**219,605**|158,403|
|Depreciation|119,194|11,544|**130,738**|112,550|
|Loss on disposal of fixed assets|-|-|**-**|33,840|
|Sundries|3,220|-|**3,220**|4,072|
|Allocation of support costs(note 10)|774,416|5,935|**780,351**|638,789|
||||||
|Total 2023|4,267,245|602,065|4,869,310|4,330,409|
||||||
|Total 2022|3,447,279|883,130|4,330,409||
Page 37
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
|**10.**|**Allocation of support costs**|**Raising Funds**|**Charitable**
**Activities**|**Total**
**funds**|Total
funds|
|---|---|---|---|---|---|
|||**2023**|**2023**|**2023**|2022|
|||**£**|**£**|**£**|£|
||Contracted telephone and IT|5,957|48,201|**54,158**|51,928|
||Salaries and NI|70,010|511,671|**581,681**|495,286|
||Pension contributions|2,594|20,992|**23,586**|19,856|
||Staff costs includingtravel|6,681|54,059|**60,740**|54,737|
||Office consumables|3,736|30,229|**33,965**|34,901|
||Legal andprofessional fees|5,624|31,317|**36,941**|36,134|
||Bank charges|605|4,892|**5,497**|5,606|
||Governance costs(see below)|1,241|78,990|**80,231**|62,014|
|||||||
||Total 2023|96,448|780,351|**876,799**|760,462|
|||||||
||Total 2022|121,673|638,789|760,462||
||**Governance**
Audit and accountancy
Employee costs and administrative support|||**2023**
**£**
**25,460**
**54,771**
**80,231**|2022
£
15,909
46,105
62,014|
Page 38
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **11. Net income/(expenditure)**
This is stated after charging:
||**2023**|2022|
|---|---|---|
||**£**|£|
|Depreciation|141,181|127,843|
|Auditor's remuneration - audit services|14,550|9,330|
|Auditor's remuneration - other services|2,650|2,410|
## **12. Staff costs**
|Salaries
Employers' social security costs
Employers' pension contributions
Agency staff costs|**2023**
**£**
**3,175,392**
**299,992**
**197,244**
**3,672,628**
**194,121**
**3,866,749**|2022
£
2,989,338
274,630
188,898|
|---|---|---|
|||3,452,866
115,419|
|||3,568,285|
The average number of persons employed by the charitable company during the year was as follows:
|Hospice
Administration, fundraising & finance
Retail
Lottery|**2023**
**No.**
**125**
**17**
**11**
**-**
**153**|2022
No.
123
17
14
3|
|---|---|---|
||||
|||157|
Page 39
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **. Staff costs (continued)**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**2023**|2022|
|---|---|---|---|
|||**No.**|No.|
|In the band £60,001|- £70,000|**1**|-|
|In the band £80,001|- £90,000|**1**|1|
The charitable company considers that the key management personnel comprise the Trustees and the Executive team - which is currently the Chief Executive and four other Directors. The total employee benefits (including employer's NI and pension) of the key management personnel employed during the year were £340,104 (2022: £275,440).
An accrual for holiday pay earned but not yet taken has been included in the salary figure for 2023 and 2022.
## **13. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).
During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - NIL).
## **14. Taxation**
The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Page 40
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **15. Tangible fixed assets**
|**_Cost or valuation_**
At 1 April 2022
Additions
Disposals
At 31 March 2023
**_Depreciation_**
At 1 April 2022
Charge for the year
On disposals
At 31 March 2023
**_Net book value_**
At 31 March 2023
At 31 March 2022|**Freehold**
**property**
**£**
**247,178**
**-**
**(175,000)**
**72,178**
**60,982**
**2,027**
**(35,582)**
**27,427**
**44,751**
186,196|**Long-term**
**leasehold**
**property**
**£**
**4,276,939**
**30,027**
**-**
**4,306,966**
**1,211,612**
**86,660**
**-**
**1,298,272**
**3,008,694**
3,065,327|**Motor**
**vehicles**
**£**
**12,793**
**-**
**-**
**12,793**
**9,197**
**1,799**
**-**
**10,996**
**1,797**
3,596|**Equipment**
**and**
**Computers**
**£**
**735,283**
**122,982**
**(500,619)**
**357,646**
**607,068**
**50,695**
**(500,619)**
**157,144**
**200,502**
128,215|**Total**
**£**
**5,272,193**
**153,009**
**(675,619)**
**4,749,583**
**1,888,859**
**141,181**
**(536,201)**
**1,493,839**
**3,255,744**
3,383,334|
|---|---|---|---|---|---|
Included in freehold property in the prior year is Fox House which was donated to the charity several years ago. It was transferred from investment property on 31 March 2012 at the directors' valuation of £175,000. The original value of the property was £146,144. During the year the property has been disposed of and therefore the revaluation reserve has been transferred back to general reserves.
Page 41
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **16. Fixed asset investments**
|**17.**||**Listed**
**investments**|**Total**
**2023**|**Total**
**2022**|
|---|---|---|---|---|
|||**£**|**£**|**£**|
||**_Cost or valuation_**||||
||Additions|1,354,192|**1,354,192**|-|
||Revaluations|(13,241)|**(13,241)**|-|
||At 31 March 2023|1,340,951|**1,340,951**|-|
||||||
||Investment cash|145,880|**145,880**|-|
||At 31 March 2023|1,486,831|**1,486,831**|-|
||||||
||Historical cost|1,500,024|**1,500,024**|-|
||**Debtors**||||
|Trade debtors
Other debtors
Prepayments and accrued income|**2023**
**£**
**228,515**
**40,596**
**461,257**
**730,368**|2022
£
311,150
33,437
1,137,595|
|---|---|---|
||||
|||1,482,182|
Page 42
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **18. Creditors: Amounts falling due within one year**
|Amounts held under agency arrangements (note 19)
Trade creditors
Other creditors
Accruals and deferred income
Deferred income at 1 April 2022
Resources deferred during the year
Amounts released from previous periods|**2023**
**£**
**210,000**
**95,798**
**115,787**
**97,251**
**518,836**
**2023**
**£**
**76,432**
**3,961**
**(76,432)**
**3,961**|2022
£
-
125,291
99,900
260,624
485,815
2022
£
139,420
76,432
(139,420)
76,432|
|---|---|---|
Income has been deferred because it relates to future accounting periods as stipulated by the funders or where the conditions for recognition have not yet been met.
## **19. Agency arrangements**
The charity acts as agent in distributing funds from NHS South Yorkshire ICB relating to joint Hospice collaboration on the adolescence pathway. The charity received £210,000 and disbursed £nil from the fund during the year. An amount of £210,000 is included in note 18, which represents the undistributed funds at 31 March 2023.
Page 43
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
|**20.**
**Statement of funds**
**Statement of funds - current year**
**Balance at 1**
**April 2022**
**£**
**_Unrestricted_**
**_funds_**
General funds
**9,428,436**
Revaluation
reserve
**27,125**
**9,455,561**
**_Restricted funds_**
IPU
**16,195**
Day Unit
**699**
Hospice @ Home
**25,921**
Marie Curie
**-**
Sunbeams
**28,970**
OT's & Physios
**402**
Clinical Central
**1,506,655**
Grounds &
Gardens
**78,643**
HR
**2,053**
IT
**203,020**
Echo
**72,441**
Retail
**2,421**
**1,937,420**
**_Total of funds_**
**11,392,981**|**Income**
**£**
**5,959,035**
**-**
**5,959,035**
**1,005**
**30**
**1,127**
**-**
**3,134**
**-**
**14,080**
**-**
**-**
**-**
**-**
**-**
**19,376**
**5,978,411**|**Expenditure**
**£**
**(5,001,057)**
**-**
**(5,001,057)**
**(22)**
**(729)**
**(840)**
**(39,924)**
**(6,329)**
**-**
**(508,095)**
**(15,915)**
**-**
**(46,274)**
**-**
**-**
**(618,128)**
**(5,619,185)**|**Transfers**
**in/out**
**£**
**146,918**
**(27,125)**
**119,793**
**(490)**
**-**
**-**
**39,924**
**-**
**-**
**(97,799)**
**(61,428)**
**-**
**-**
**-**
**-**
**(119,793)**
**-**|**Gains/**
**(Losses)**
**£**
**(13,241)**
**-**
**(13,241)**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**(13,241)**|**Balance at 31**
**March 2023**
**£**
**10,520,091**
**-**|
|---|---|---|---|---|---|
||||||**10,520,091**|
||||||**16,688**
**-**
**26,208**
**-**
**25,775**
**402**
**914,841**
**1,300**
**2,053**
**156,746**
**72,441**
**2,421**|
||||||**1,218,875**|
||||||**11,738,966**|
Page 44
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **20. Statement of funds (continued)**
## **Statement of funds - prior year**
|**_Unrestricted funds_**
**_Designated funds_**
Collaboration working fund
**_General funds_**
General funds
Revaluation reserve
**_Total Unrestricted funds_**
**_Restricted funds_**
IPU
Day Unit
Hospice @ Home
Marie Curie
Sunbeams
OT's & Physios
Clinical Central
Grounds & Gardens
HR
IT
Echo
Retail
**_Total of funds_**|Balance at
1 April 2021
£
11,619
7,608,495
27,125
7,635,620
7,647,239
44,694
914
125,518
50,000
15,313
57
566,454
95,709
2,053
248,000
74,864
2,421
1,225,997
8,873,236|Income
£
-
6,141,512
-
6,141,512
6,141,512
11,874
-
4,398
-
13,897
594
1,626,466
16,052
-
-
-
-
1,673,281
7,814,793|Expenditure
£
-
(4,411,918)
-
(4,411,918)
(4,411,918)
(40,373)
(215)
(103,995)
(50,000)
(240)
(249)
(663,033)
(942)
-
(21,660)
(2,423)
-
(883,130)
(5,295,048)|Transfers
in/out
£
(11,619)
90,347
-
90,347
78,728
-
-
-
-
-
-
(23,232)
(32,176)
-
(23,320)
-
-
(78,728)
-|Balance at
31 March
2022
£
-|
|---|---|---|---|---|---|
||||||9,428,436
27,125|
||||||9,455,561|
||||||9,455,561|
||||||16,195
699
25,921
-
28,970
402
1,506,655
78,643
2,053
203,020
72,441
2,421|
||||||1,937,420|
||||||11,392,981|
Page 45
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **20. Statement of funds (continued)**
Purposes of current year restricted funds are as follows:
IPU - Various donations to support the ongoing work of our Inpatient Unit Day Unit - Donations given specifically to support the Day Unit
Hospice at Home - Various donations given specifically to support the work of the Community Team Marie Curie - Specific donation to support the increased contractual costs of our services commissioned from Marie Curie
Sunbeams - Donations in support of the children's bereavement service
OT's & Physios - Donations to support our complimentary therapy provision
Clinical Central - Grants received from the NHS and from Hospice UK. With regard he Hospice UK grant, NHS England awarded funding to allow the Hospice to make available bed capacity and community support to provide support to people with complex needs in the context of the COVID-19 situation.
Grounds and Gardens - Grants and donations from a variety of source which enable investment into refurbishment projects in our buildings and around our gardens
HR - Donations to support staff, staff welfare and volunteers
IT - Specific NHS Grants to invest in IT infrastructure, IT upgrades and IT developments Echo - Project Echo is an education and support project Retail - Specific donation to support our Retail operations
## **21. Summary of funds**
## **Summary of funds - current year**
|General funds
Restricted funds|**Balance at 1**
**April 2022**
**£**
**9,455,561**
**1,937,420**
**11,392,981**|**Income**
**£**
**5,959,035**
**19,376**
**5,978,411**|**Expenditure**
**£**
**(5,001,057)**
**(618,128)**
**(5,619,185)**|**Transfers**
**in/out**
**£**
**119,793**
**(119,793)**
**-**|**Gains/**
**(Losses)**
**£**
**(13,241)**
**-**
**(13,241)**|**Balance at 31**
**March 2023**
**£**
**10,520,091**
**1,218,875**|
|---|---|---|---|---|---|---|
|||||||**11,738,966**|
Page 46
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **21. Summary of funds (continued)**
## **Summary of funds - prior year**
|Designated funds
General funds
Restricted funds|Balance at
1 April 2021
£
11,619
7,635,620
1,225,997
8,873,236|Income
£
-
6,141,512
1,673,281
7,814,793|Expenditure
£
-
(4,411,918)
(883,130)
(5,295,048)|Transfers
in/out
£
(11,619)
90,347
(78,728)
-|Balance at
31 March
2022
£
-
9,455,561
1,937,420|
|---|---|---|---|---|---|
||||||11,392,981|
## **22. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**_Total_**|**Unrestricted**
**funds**
**2023**
**£**
3,255,744
1,486,831
6,296,352
(518,836)
10,520,091|**Restricted**
**funds**
**2023**
**£**
-
-
1,218,875
-
1,218,875|**Total**
**funds**
**2023**
**£**
**3,255,744**
**1,486,831**
**7,515,227**
**(518,836)**|
|---|---|---|---|
||||**11,738,966**|
Page 47
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **22. Analysis of net assets between funds (continued)**
## **Analysis of net assets between funds - prior year**
|Tangible fixed assets
Current assets
Creditors due within one year
**_Total_**|Unrestricted
funds
2022
£
3,383,334
6,558,042
(485,815)
9,455,561|Restricted
funds
2022
£
-
1,937,420
-
1,937,420|Total
funds
2022
£
3,383,334
8,495,462
(485,815)
11,392,981|
|---|---|---|---|
## **23. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the year (as per Statement of Financial Activities)
**_Adjustments for:_**
Depreciation charges
Loss on investments
Interest and dividends received
(Profit)/loss on the sale of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**_Net cash provided by operating activities_**|**2023**
**£**
**345,985**
**141,181**
**13,241**
**(21,213)**
**(70,582)**
**3,528**
**751,814**
**33,021**
**1,196,975**|2022
£
2,519,745
127,843
-
(189)
33,840
11,753
(920,419)
(110,475)
1,662,098|
|---|---|---|
Page 48
## **THE ROTHERHAM HOSPICE TRUST**
## **(A company limited by guarantee)**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **24. Analysis of cash and cash equivalents**
|Cash at bank and in hand
Investment portfolio cash
**_Total cash and cash equivalents_**|**2023**
**£**
**6,769,350**
**145,880**
**6,915,230**|2022
£
6,994,243
-|
|---|---|---|
||||
|||6,994,243|
## **25. Analysis of changes in net debt**
|Cash at bank and in hand|**At 1 April**
**2022**
**£**
**6,994,243**
**6,994,243**|**Cash flows**
**£**
**(224,893)**
**(224,893)**|**At 31 March**
**2023**
**£**
**6,769,350**|
|---|---|---|---|
||||**6,769,350**|
## **26. Pension commitments**
The Hospice is an approved provider of the NHS defined benefits pension scheme and makes a 14.38% employers contribution for all staff who are members of the scheme. There is no liability on the Hospice for any short-fall of assets in the scheme either in the short or long term, our only commitment is to the monthly contribution of 14.38% of pensionable salaries. At 31 March 2023, outstanding contributions payable within this scheme were £18,841 (2022: £18,509).
In February 2012 a defined contributions pension scheme was made available to staff on a Hospice contract of employment. The maximum contribution payable by the Hospice is 6%. At 31st March 2023, outstanding contributions payable within this scheme were £4,180 (2022: £4,547). The Hospice also runs an auto enrolment scheme, outstanding contributions as at 31 March 2023 were £7,221 (2022: £5,331).
Page 49
**(A company limited by guarantee)**
## **THE ROTHERHAM HOSPICE TRUST**
## NOTES TO THE FINANCIAL STATEMENTS
_FOR THE YEAR ENDED 31 MARCH 2023_
## **27. Operating lease commitments**
At 31 March 2023 the charitable company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**2023**
**£**
**74,220**
**159,394**
**-**
**233,614**|2022
£
55,126
92,656
7,750|
|---|---|---|
||||
|||155,532|
## **28. Related party transactions**
During the year Helen Jackson, the spouse of Robert Jackson, Trustee, was employed as a bank staff nurse at the Hospice and received remuneration of £25,904 (2022: £19,557). This remuneration is paid on the same terms as other bank staff.
During the year recruitment services were received from Human (Yorkshire) Limited, of which Amy Stephenson is a director. Of the £9,600 paid in total during the year for these services, £4,800 has been paid since Amy Stephenson's appointment as a trustee of The Rotherham Hospice Trust in October 2022.
## **29. Controlling party**
The company is controlled by its members. No individual member has overall control.
Page 50
# **Rotherham Hospice Trust Audit Findings Report Year ended 31 March 2023**
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Advisory | Assurance | Corporate Finance | Tax
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**bhp.co.uk**
## **Contents**
|**1.**
**Audit summary**|**2**|
|---|---|
|**2.**
**Audit status and expected opinion**|**5**|
|**3.**
**Identified audit risks**|**6**|
|**4.**
**Internal controls**|**9**|
|**Appendix 1: Audit adjustments and (surplus/(deficit)) reconciliation**|**11**|
|**Appendix 2: Unadjusted misstatements**|**13**|
|**Appendix 3: Specific representations**|**14**|
|**Appendix 4:**
**Keeping you informed**|**15**|
**This document is to be regarded as confidential to Rotherham Hospice Trust. It has been prepared by BHP LLP for the sole use of the Trustees. No responsibility is accepted to any other person in respect of the whole or part of its contents. Before this document, or any part of it, is disclosed to a third party, our written consent must first be obtained.**
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## **1. Audit summary**
## **Introduction**
## **Instances of fraud**
This report forms part of the ongoing communication we are required to make under the relevant auditing standard (International Standard on Auditing (UK) 260).
Our work did not highlight any actual or suspected instances of fraud perpetrated either internally or externally and we have not been made aware of any such instances.
The purpose of this document is to report to those charged with governance, the findings following our audit of the financial statements and receive feedback on the performance of the audit team.
As explained in our audit plan, we are responsible for forming and expressing an opinion on the financial statements that have been prepared by management with the oversight of those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities and details of our respective responsibilities are summarised in our letter of engagement dated 18 January 2022.
## **Materiality**
Our approach to determining materiality has not changed from planning to completion stage, in Appendix 2, we report to you all uncorrected misstatements which are not considered trivial. Triviality is usually considered to be 5% of materiality unless the potential errors noted are material by nature.
## **Related party transactions**
We would like to take this opportunity to thank Andrew Pepper, Kirsty Acklam and Cheryl Greaves for the assistance that they have provided to us during our audit.
## **Independence**
The Trustees are required to disclose transactions with related parties of the Charity where those transactions are material to either the related party or to the Charity. As part of the letter of representation, we ask you, as Trustees, to confirm to us that the related party disclosure in the accounts is complete.
At planning we communicated to you our review of auditor independence and the safeguards we have put in place to mitigate any actual or perceived threats to our independence.
We confirm that we have reviewed and considered our independence at audit completion, having remained alert throughout the audit, and there are no changes to be brought to your attention since our communications at planning.
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## **1. Audit summary**
## **Audit status and expected opinion**
Our audit work is substantially complete with the matters outstanding as set out below:
Subject to the satisfactory conclusion of the outstanding matters and the receipt of the signed letter of representation, which includes the specific representations as included in Appendix 3, we can confirm that we anticipate issuing an unmodified opinion on the financial statements.
|**Outstanding item**|**Requested from**|
|---|---|
|BHP to finalise Going Concern work|N/A|
|Confirmation of PBSE to date of sign-off|Client|
|Receipt
of signed Annual Report and
Financial Statements and Trustee Letter of
Representation|Trustees|
As part of our audit close out procedures, we will ask the trustees and management to confirm in writing that there have been no further issues arising since the completion of our fieldwork which could be considered either adjusting post balance sheet events or post balance sheet events which although not adjusting, are of such significance that they should be reported within the financial statements in order to show a true and fair view. We will discuss these matters with management and ask management to confirm on behalf of the Board of Trustees, through a letter of representation.
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## **1. Audit summary**
## **Going concern**
Our work has confirmed the Trustees’ use of the going concern basis is appropriate and that the disclosures within the financial statements are fair and reflect the going concern basis.
Section 2 provides further information in respect of our conclusions on going concern.
## **Limitations**
## **Trustees’ Annual Report (incorporating the Directors’ and Strategic Report)**
The Charity qualifies as small in accordance with Companies Act 2006 and large in accordance with the requirements of Charities Act and SORP (FRS 102).
We are satisfied that the Trustees’ Annual Report (which incorporates the Directors’ and Strategic Report) is consistent with the financial statements and has been prepared in accordance with the legal requirements.
In accordance with the auditing standards, we have documented and evaluated key internal controls which are relevant to the financial reporting process in order design and tailor our audit approach.
Matters of governance interest
We are pleased to report that there are no matters of governance interest to bring to your attention.
Our audit work is not designed to identify all significant weaknesses in the Charity’s internal controls but is designed primarily for the purpose of expressing an opinion on the financial statements. However, where, as part of our testing, we identify any control weaknesses, we have reported these to you at section [5] of this report.
Our work did not encompass a detailed review of all aspects of the internal controls and cannot be relied upon to disclose all deficiencies or other irregularities, or to include all improvements in internal control.
The Charity’s management is responsible for the identification, assessment, management and monitoring of risk, for developing, operating and monitoring the system of internal control and for providing assurance that it has done so.
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## **2. Audit status and expected opinion**
## **Audit status summary**
Our audit fieldwork has not highlighted any additional areas of risk, other than those previously reported to you. The previously reported risks, along with a description of our audit approach and conclusions, are set out in the next section.
We are pleased to report that we incurred no significant difficulties in completing our audit work. Information, explanations and documentation were all presented to us in a timely fashion and the agreed deliverables were uploaded to our secure portal as and when expected. We should like to thank the finance team for their hard work in this regard.
## **Status of going concern work**
During the planning phase of the audit, we considered the risk that the use of the going concern basis of accounting may be inappropriate and the risk that a material uncertainty in relation to going concern may exist. Overall, we did not consider the risk that there may be a material uncertainty with regard do going concern to be high.
Our audit work on going concern is complete.
## **Going concern conclusion**
We anticipate issuing an unmodified opinion on going concern.
We have reviewed the going concern accounting policy and believe it appropriately reflects the directors’ assessment.
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## **3. Identified audit risks**
During the course of the audit planning, we identified audit risks and other key matters and considered the impact of these on our approach. These were established through discussion with both those charged with governance and management and also our review of the systems and procedures and a review of the detailed financial information. We set out below the significant audit risks and key accounting estimates what we will focus our work on, in order to reduce the risk of material misstatement in the financial statements.
Set out below is the summary of our assessment of the key business and audit risks affecting the financial statements, together with an overview of our planned audit procedures.
|**Risk**|**Description**|**Our approach (how we addressed the risk)**|**Audit conclusion**|
|---|---|---|---|
|Revenue
recognition|Auditing standards state that there is a
presumed risk that revenue may be misstated|For new and existing grants/contracts, we will review the
signed agreements and ensure recorded income is in line
with these. Other income will be agreed from source
documentation|From our sample testing revenue has been recognised in
accordance with accounting policies and is materially
complete.
Cut off testing has been undertaken to ensure income is
recognised in the correct accounting period. Accrued and
deferred income has also been tested with no errors
identified.|
|Management
override of
controls|Auditing standards state that the presumed
risk of management override of controls exists
in all entities|
We use Data Analytics software called Inflo to mine 100%
of the entities financial data and run a number of tests to
identify the higher risk transactions|A sample of transactions as identified by Inflo have been
tested and agreed to supporting documentation.
All material year end journals for disclosure purposes have
also been tested to supporting documentation. These
adjustments represent statutory disclosures for compliance
with SORP and have therefore not been posted within the
accounting software.|
|Going Concern|In the current economic environment, the
trustees’ assessment of the going concern
basis of preparation is inherently more
complex. In response to these inherent
challenges, we consider it appropriate to
elevate our audit risk assessment and
proposed work.|Due to the unprecedented circumstances presented by the
current economic climate we performed an enhanced level
of audit work over the trustees’ going concern assessment.
This involved reviewing forecasts that project at least
twelve months from the date the accounts are approved.|
Our work on going concern is ongoing.|
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## **3. Identified audit risks**
|**Risk**|**Description**|**Our approach (how we addressed the risk)**||
|---|---|---|---|
|Restricted funds|Risk that income and expenditure in relation to
restricted funds is not correctly disclosed or
spent for the relevant purpose.|
As part of our transactions testing of income we will review
the sources of income to assess whether they should be
recorded as restricted funds. We will select a sample of
expenditure allocated against restricted funds to ensure the
funds have been correctly applied for the purpose for which
they were received.|
From our testing performed, income and expenditure has
been allocated to each fund correctly. We can conclude
funds are correctly stated and no breaches of trust have
occurred.|
|Employee
remuneration|Employees may be added to the payroll
who do not exist or employees may not be
removed after they have left the
organisation. Also, employees may not be
paid at the contracted, authorised rate.|For a sample of employees we will check they are bona-
fide and are being paid the correct rate in accordance with
their contract. We will check a sample of starters and
leavers to ensure these have been properly treated on the
payroll records.|For a sample of 40 employees, we could not confirm rates
for pay for 11 employees. This has all been raised as a
control point. From a sample of 12 joiners and leavers, for
1 employee there was no documentation of their
employment start date and for 2 employees inaccurate
dates were documented for joiners and leavers per the
spreadsheet provided.|
|Laws and
regulations|Failure to comply could result in a major
financial or reputational impact on the
charity.|We will review the minutes of the charity, correspondence
with the regulators and discuss with management to identify
instances of non-compliance and claims.|
During our enquiries with those in charge of compliance
with laws and regulations no compliance issues were
noted. During our audit work we did not discover any
breaches.|
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## **3. Identified audit risks**
## **Management judgements and accounting estimates**
## **Accounting policies**
Auditing standards require that accounting estimates, including fair value estimates, are identified and the underlying assumptions and degree of uncertainty for each accounting estimate is assessed.
During audit planning we identified that management uses critical accounting estimates and judgements as set out in the table below. A change in an estimate that has a low impact will have limited impact on the financial statements, conversely a change that has a higher impact can have a significant impact on the financial statements.
The appropriateness of the accounting policies as detailed in the financial statements, are adequate and have been appropriately and consistently applied.
## **Financial statement disclosures**
We complete a disclosure checklist on the financial statements. The financial statements are also subject to manager and partner review for completeness and accuracy. We are satisfied that the disclosures comply with legal and accounting requirements.
|**Estimates**|**Low impact**|**High impact**|
|---|---|---|
|Depreciation rates (including the useful economic
lives of assets and any residual values)|||
|Allocation of support costs|||
|Accruals and prepayments|||
|Provisions (bad debts)|||
|Stock valuation|||
From our audit testing, we concluded that management estimates are being applied appropriately and do not give rise to a material misstatement in the financial statements.
We are satisfied with the disclosure made in respect of the Charity’s/ key estimates and judgements fairly represent the material estimates and judgement applied.
Management should regularly review the methodology and assumptions of all accounting estimates to ensure that they remain appropriate to the Charity’s circumstances and do not result in a material misstatement in the financial statements
8
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## **4. Internal controls**
## **Current year**
The purpose of the audit was to form an opinion on the financial statements. As part of our audit, we have considered the internal controls relevant to the preparation of the financial statements, in order to design audit procedures to allow us to express an opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of internal controls. The matters reported are limited to those deficiencies in internal controls which came to our attention during the course of our audit work. This does not constitute a comprehensive statement of all deficiencies that may exist or of all improvements which may be made and has addressed only those matters which have come to our attention as a result of the audit procedures performed.
Our findings and recommendations are noted below. We have assigned a priority indication to each finding to reflect the urgency we consider management should place in addressing each item.
||||||||||
|---|---|---|---|---|---|---|---|---|
||**Implies a high priority issue requiring**
**immediate management attention**||**Implies an important issue that should be reviewed**
**and/or implemented at your earliest convenience**||||**Implies an advisory issue that is raised purely for**
**management information and possible further discussion**||
||||||||||
|**Observation**||**Risk**||**Rating**|**Recommendation**|||**Response**|
|From a sample of 36 purchases tested, a purchase order could not be
provided for 1 purchase, 5 purchase orders and 3 purchase invoices did not
have evidence of authorisation and for 1 of the purchases tested,
expenditure was authorised above the approved limit for that individual.||Unauthorised expenditure could occur leading to
fraudulent items being purchased for personal use leading
to a loss of funds for the charity.|||Ensure all expenditure is authorised and proof of
authorisation is clearly kept on file.|||We have located evidence for the item with a missing
PO, 1 of the 5 unauthorised POs; and for 1 of the 3
invoices. Nevertheless, we note the control re: PO
system. We have taken steps to re-launch our PO-
system from April 23. We would also note that where a
pre-existing contract is in place (e.g. for a lease) then no
PO would be required. With regards invoices, we
require managers to approve all invoices before
payment to ensure that goods/services have been
satisfactorily received.|
|During our testing of joiners and leavers, it was noted that for 1 employee,
there was no documentation held as to a specific start date, and for 2
employees inaccurate dates were documented for joiners and leavers per
the spreadsheet provided||Improper documentation held could mean staff are paid
after having left, or not paid despite having joined|||Ensure all documentation is up to date and accurate
regarding employees joining and leaving|||The individual with no start date was a bank member of
staff and can confirm a bank contract is in place (albeit
that actual start on site will be dependent on service
need). We note the control re: start-dates and
information is now held on Staff Care from April 23.|
|During our testing of payroll, it was noted there were no up to date contract
or salary uplift letter held for 11 employees out of a sample of 40 and
therefore their rate of pay could not be agreed.||No documentation to support rate of pay could lead to
employees being over/ under paid|||Ensure up to date salary information is held for all
employees|||The HR Director has confirmed that as a direct output
from last year’s audit, the Hospice wrote to current
employees with salary letters. From April 23, those
letters are contained in Staff Care.|
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## **4. Internal controls**
## **Prior year**
## We have also set out the deficiencies identified in the previous year’s audit with an update on the position in the current year.
||**Implies a high priority issue requiring**
**immediate management attention**||**Implies an important issue that should be reviewed**
**and/or implemented at your earliest convenience**|**Implies an important issue that should be reviewed**
**and/or implemented at your earliest convenience**|**Implies an important issue that should be reviewed**
**and/or implemented at your earliest convenience**||**Implies an advisory issue that is raised purely for**
**management information and possible further discussion**|**Implies an advisory issue that is raised purely for**
**management information and possible further discussion**|
|---|---|---|---|---|---|---|---|---|
||||||||||
|**Observation**||**Risk**||**Rating**|**Recommendation**|||**Update in current period**|
|For 3 out of the 24 purchase invoices tested, we could not obtain evidence
of these purchases being approved in line with the approval procedures at
the charity.||Unauthorised expenditure could occur leading to
fraudulent items being purchased for personal use leading
to a loss of funds for the charity.|||Ensure all expenditure is authorised and proof of
authorisation is clearly kept on file.|||This issue has been collated together with the above
control point. See comments on the previous page.|
|For 4 out of the 24 purchase invoices tested, we could not obtain the
supporting purchase orders.||Unauthorised expenditure could occur leading to
fraudulent items being purchased for personal use leading
to a loss of funds for the charity. The invoice may
correspond to what was actually ordered and this would
go unnoticed.|||Ensure all purchase orders are retained and kept on file.|||This issue has been collated together with the above
control point. See comments on the previous page.|
|For 5 out of the 24 purchase invoices tested, we could not obtain the
supporting goods received notes.||There is no evidence of when goods have been received at
the charity or if it ever was received, leading to stock cut-
off issues.|||Ensure all goods delivery notes are retained and kept on
file.|||
No such identification of this issue has been found in the
audit of the period to March 2023.|
|We could not obtain a breakdown for the prepaid lottery (deferred income)
(NC 2120) balance.||Potential for these balances to be misstated as they are
not reconciled on a timely basis..|||Ensure monthly reconciliations of this balances is carried
out so the amounts recorded on the balance sheet are
accurate.|||
This matter has now been resolved. Lottery has now
been outsourced to ‘Local Hospice Lottery’ and a
reconciliation of the Lottery deferred income balance
has been prepared as part of the outsourcing process.|
|From the events and donations testing, it became clear that the processes of
inputting and reporting using Donorflex are not always completed accurately
and in line with procedures.||
Increased risk of income being incorrectly recorded.|||Ensure there is a set process for recording income which
is always followed.|||
No such identification of this issue has been found in the
audit of the period to March 2023.|
|For 2 out of 40 employees tested, photo identification could not be
provided. These relate to employees that have now left Rotherham Hospice.||Fictitious employees may be included on the payroll
reports leadingto fraudulentpayrollpayments.|||Ensure all employees have photo identification kept on
file.|||This was not identified as an issue in the current year.|
|For 2 out of 40 employees tested, salary documentation could not be
provided. One of these employees no longer works at Rotherham Hospice.||No documentation to support their rate of pay. This could
lead to an employee beingunder or overpaid.|||Ensure all salary documentation is kept on file.|||This was not identified as an issue in the current year.|
|For 21 out of 40 employees tested, we could not agree the contracted rate
of pay to the payroll records. 1 related to an underpayment, 13 related to
overpayments and the documentation provided for the remaining 7, related
to pay rates effective 1 April 2022 which is outside of the financial year.||Staff are paid incorrect amounts, leading to potential
disputes.|||Ensure up to date salary documentation is provided for
all employees.|||This remained an issue for 11 out of 40 employees
tested in the current year. Please see previous page for
comments.|
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## **Appendix 1: Audit adjustments and (surplus/(deficit)) reconciliation**
We set out below the identified audit misstatements that have been adjusted in the financial statements and show a reconciliation between the surplus/(deficit) per the trial balance/management accounts provided at the planning stage and that reported in the financial statements.
||**Total**
**£**|
|---|---|
|**Surplus per trial balance**|**345,984**|
|Support costs allocation to raising funds (nil surplus impact)|**-**|
|Rounding|**1**|
|**Surplus per the draft financial statements**|**345,985**|
On behalf of the board, I hereby approve the adjustments summarised above:
Signed: ……………………………………………….
Date: ……………………………………………….
Name: ……………………………………………….
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## **Appendix 1: Audit adjustments and (surplus/(deficit)) reconciliation**
## **Disclosure adjustments**
We have reviewed the disclosures and accounting policies in the financial statements and are satisfied that these are compliant with FRS102 and SORP 2019.
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## **Appendix 2: Unadjusted misstatements**
We set out below the misstatements above the level of ‘clearly trivial’, that we have identified during our audit testing. These misstatements were not considered material either individually or in aggregate and so have not been adjusted in the financial statements.
|**Detail**|**Profit and loss**|**Profit and loss**|**Balance sheet**|**Balance sheet**|
|---|---|---|---|---|
||**DR**
**£**
**CR**
**£**||**DR**
**£**
**CR**
**£**||
|Accrued legacy income without probate|41,250|||41,250|
|Stock adjustment posted in wrong direction||7,055|7,055||
|Understatement of accrued legacy income|-|5,813|5,813|-|
|**Total potential adjustments**|41,250|12,868|12,868|41,250|
||||**Total effect of these**
**misstatements on surplus**|(28,382)|
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**Advisory | Assurance | Corporate Finance | Tax**
## **Appendix 3: Specific representations**
Set out below are the proposed Charity’s specific paragraphs we intend to include in our letter of representation together with the reason for including them, which we will require management to approve and sign.
|**Proposed paragraph wording**|**Reason for inclusion**|
|---|---|
|We confirm that the basis for calculating donated stock are deemed reasonable and free
from material misstatement.|Stock is valued based on the first two weeks of sales in April-23 and no stock count is
completed. Therefore, there is a potential for stock to be misstated.|
14
**Advisory | Assurance | Corporate Finance | Tax**
## **Appendix 4: Keeping you informed**
## **Accountancy and audit**
## **Accountancy and audit**
## **How high inflation impacts accounting**
Inflation, supply chain constraints and labour shortages all affect a business’ forecasts. Forecasts are used in a variety of accounting estimates, including, but not limited to, those relating to the assessment of goodwill or other asset impairment, certain provisions, estimates of future taxable profits related to the recovery of deferred tax asset balances; and going concern.
## **Planning for the 2022/23 reporting season**
There are no new major accounting standards or amendments applicable for 31 December 2022 to 31 December 2023 year ends.
## **Consultations | Financial Reporting Council (frc.org.uk)**
FRED 82 contains significant proposals to change UK and Ireland accounting standards and proposes amending UK and Ireland GAAP to reflect changes in IFRS Accounting Standards, especially in relation to leasing and revenue recognition. FRED 82 also proposes a number of other incremental improvements and clarifications.
## **Changes on the horizon for the role of Companies House Part two of the Economic Crime Bill, setting out extensive provisions to reform Companies House, has been introduced at Parliament:**
- ✓ Second part of a legislative package designed to bring in stronger powers to tackle money laundering and other illicit activity
- ✓ The first piece of legislation was fast-tracked in response to the Russian invasion of Ukraine and enacted on 15 March 2022
## **Proposed changes:**
- ✓ Splitting micro and small requirements in Companies Act 2006 – ultimately removing the option to file filleted accounts for small and micro entities
- ✓ Tightened requirements around the audit exemption statement to reduce the risk of abuse
- ✓ Companies House to be given powers to verify the integrity of documents submitted
- ✓ Clauses designed to help facilitate the electronic delivery of documents to the Registrar
## **Currently out to Parliament and expected to obtain Royal Assent by next Spring – no steer on effective dates**
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**Advisory | Assurance | Corporate Finance | Tax**
## **Appendix 4: Keeping you informed**
## **Accountancy and audit**
## **Accountancy and audit**
**All change for 2022 year ends | Croner-i Tax and Accounting (croneri.co.uk)** – Two significant auditing standards have been revised:
- ISA (UK) 315 (Revised July 2020) Identifying and Assessing the Risks of Material Misstatement; and
- ISA (UK) 240 (Revised May 2021) The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
There are also two new Quality Standards:
- ISQM (UK) 1 Quality management for firms that perform audits or reviews of financial statements or other assurance or related services engagements (July 2021) (Previously International Standard on Quality Control (UK) 1) (Revised June 2016)); and
- ISQM (UK) 2 Engagement quality reviews (July 2021)
## **Financial Reporting Council (frc.org.uk)**
The spectre of corporate collapse haunts the audit profession today, as the afteraffects linger from the losses of the likes of Thomas Cook, BHS and Carillion. These events have led to significant and fundamental criticism of the audit profession.
They also formed the context for three independent reviews, by Sir John Kingman, Sir Donald Brydon and the Competition and Markets Authority, which set out various recommendations for reforming the audit market.
The coming reforms will affect auditors but trustees will also need to understand how things might change and what the impact will be on audit tendering, scope of work and fees.
## **ISA 600: What's new in the group audits?**
New requirements for the audit of groups are being introduced for periods beginning on or after 15 December 2023.
This introduces significant changes to the audit of groups and components of groups for periods commencing on or after 15 December 2023 (with early adoption permitted).
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## **Appendix 4: Keeping you informed**
## **Charity Commission updates**
## **Charity Commission updates**
## **Annual return for 2023**
The Charity Commission has published an updated set of questions that many charities will need to complete as part of their 2023 Annual Return.
A number of changes and improvements have been made as a result of feedback received from charities and interested parties during a consultation which ended in September 2022.
## **Cost of living crisis**
The Charity Commission issued updated guidance on 11 January 2023 titled: _“Manage financial difficulties in your charity arising from cost of living pressures”,_ recognising that many charities are facing difficult circumstances resulting from rapidly increasing costs.
The starting point for trustee decisions must always be what is in the charity’s best interests. A key extract from the guidance is evaluating your charity’s financial position:
## **Draft social media guidance**
The regulator is seeking views on its new draft guidance, which is intended to help trustees use social media appropriately and with confidence.
The guidance emphasises that those employed by, or working with charities are free to use social media in their own right; however, sometimes there are risks that an individual’s posts are interpreted as reflecting the views of the charity and the draft guidance therefore says trustees should consider setting out what their rules are, and how they would respond if such activity brings negative attention to the charity. As part of its consultation the Commission is inviting comments on how the draft currently frames this.
The draft guidance does not introduce new trustee duties but seeks to make clear how existing duties apply to charities’ use of social media. It is a response to the ever-growing relevance of social media to many charities’ work, increasing levels of complaints to the Commission and resulting Commission casework, as well as encouragement from within the sector to produce clear guidance.
“Charities may face shortfalls of income in the current financial climate. If your charity is facing increased pressures, there is a greater need to keep the charity’s operations and finances under regular review than would be expected during a more financially secure period. It is important to make sure you have an accurate picture of your charity’s current and planned short-term operations, and the cash flow implications…”
## **Online fraud**
The Charity Commission is warning charities about the risk of online fraud, as a new survey found around one in eight charities (12%) had experienced cybercrime in the previous 12 months. 51% of charities surveyed held electronic records on their customers and 37% enabled people to donate online, which increases a charity’s vulnerability. However, only 24% of charities have a formal policy in place to manage this risk.
The survey also confirmed that there is an under-reporting of incidents when they do occur, with only a third (34%) of affected charities reporting breaches.
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## **Appendix 4: Keeping you informed**
## **Charity Commission updates**
## **Campaigning and political activity guidance for charities**
On 7 November 2022 the Charity Commission issued updated guidance to advise charities to what extent they can get involved in campaigning and political activity.
Although campaigning is a legitimate activity for charities and the considerations that apply are similar to those for any other activity, trustees need to be confident that the options, risks, costs and benefits have been carefully weighed up before starting a campaign.
## **5-minute guides**
The Commission has developed a collection of short and engaging guidance on issues ranging from safeguarding people to managing conflicts of interest.
Dubbed the ‘5-Minute Guides’, the collection serves as a basic toolkit for trustees who are managing the many demands of running a charity.
The core suite of 5-minute guides includes advice on the following subject areas:
- Delivering purpose
- Managing Finances
- Conflicts of interest.
- Making decisions
- Reporting information
- Safeguarding people
- Political activity and campaigning
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