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2023-03-31-accounts

Company Registration No. 02280991 (England and Wales)

Charity Registration No.700993

PENDLESIDE HOSPICE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

PM+M Solutions for Business LLP Chartered Accountants New Century House Greenbank Technology Park Challenge Way Blackburn Lancashire BB1 5QB

PENDLESIDE HOSPICE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees David Brown
Margaret Hynes
Roger Cornes
David Walker
Giles Williams
Angela Brown
Jaydee Davis
Gillian Oakley
Mike Steel
Helen Binns
Mark Irlam
Nicola Alden Resigned 29 April 2022
Nadeem Memon Appointed 3 August 2022,
Resigned 11 September
2022
Francesa Chapman Resigned 3 April 2023
Chief executive officer Helen McVey
Secretary Roger Cornes
Charity number 700993
Company number 02280991
Registered office Pendleside Hospice
Colne Road
Reedley
Burnley
Lancashire
BB10 2LW
Auditor PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
Investment advisors James Brearley & Sons
7 South Preston Office Village
Cuerden Way
Bamber Bridge
Preston
PR5 6BL
Close Brothers Asset Management
7th Floor
80 Mosley Street
St Peter's Square
Manchester
M2 3FX

PENDLESIDE HOSPICE

CONTENTS

Page
Trustees' report 1 - 11
Independent auditor's report 12 - 15
Group Statement of financial activities 16
Group balance sheet 16
Charity balance sheet 17
Group Statement of cash flows 19
Notes to the financial statements 20 - 36

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 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 (FRS 102)" (effective 1 January 2019).

Following on from the previous year, the twelve month period ending on 31st March 2023 remained challenging as we realised the full impact of the cost of living crisis, which had started to evolve globally and nationally during 2021/22. This include the implications on the levels of income generation, staff salaries and general finances for Pendleside.

Despite this, we have continued to step up in meeting the needs of the community. Whilst we cared for a similar total of service users as in the previous year, the number of activities and contacts with them, with the exception of inpatients, increased significantly. As a result of the increase in patient contacts, we were better able to respond to people’s needs.

The introduction and embedding of new initiatives, such as the development of a single point of access for all night sit provision for palliative and end of life care across the area, the expansion of hospice at home night sitting service and the development of health and wellbeing service, have all proven to be very successful with more people supported and excellent feedback received.

This has all been made possible, and further enhanced, through the dedicated care and support provided by our clinical, ancillary, administrative, fundraising and retail employees and volunteers. The team have had to continue to work innovatively in order to face the challenges being experienced. We simply could not have achieved all that we have without everybody pulling together with positivity and determination to meet the needs of the people in our local community who need our support.

Chairman's Report

With the ongoing impact of the cost of living crisis, we are continuing to see a period of uncertainty and ever changing times, with the future remaining unclear and proving extremely difficult to plan for. Despite this, Pendleside Hospice continues to step up to support our local community by adapting and increasing the support it provides to local people. In a positive way, we have been able to support some of the most vulnerable people in our community whilst, at the same time, maintaining existing service provision and introducing new and innovative ways of delivering our care.

In maintaining and developing our services, we have continued to work more collaboratively with other Hospices in Lancashire, the NHS, other charities, as well as social and domiciliary care providers. These enhanced ways of working enable the sharing of our knowledge and experience of palliative and end of life care, whilst also ensuring a responsive, cohesive service for patients living with advancing, long term and life limiting illnesses, their families and carers.

Particularly, we have been able to focus more support on people living with dementia.This has been recognised as extremely important for the future, with dementia now being the leading cause of death in the UK.

We have also focused our attention on supporting people who we have identified as being less likely to access Hospice services, including those with frailty, the homeless, those who are socially vulnerable and in minority ethnic groups.

Besides focusing on the maintenance and development of our clinical services, we have, simultaneously, continued to focus on income generation and fundraising in order to ensure long term sustainability of the funding for our services.

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Our retail operation, which had struggled to ‘get going’ after the Covid pandemic, grew significantly over the last twelve months, particularly as a result of a new campaign “Rewear Revolution”, which encourages people to both donate and shop in our retail outlets. Our online sales offering also grew during 2022/23 and we recognise that this is an area in which we can continue to grow, in the future.

Fundraising was also very positive with our events that we’d had to put on hold due to the pandemic being extremely well supported when they were reinstated. Overall, the level of supporter donations has been very positive.

Our ‘meals on wheels’ service, which started in late 2020, has also seen good growth. Besides serving people who are isolated and vulnerable in the community, it also generated a surplus, which has helped in funding patient care services.

2022/23 was the midpoint for implementation of our current organisational strategy. This set out our priorities for the future and we are pleased to report that we have continued to make some excellent progress with the strategy, including embedding the single point of access for fast track night sits, which was set up in the previous year, further development of our hospice at home night sitting service and delivering a successful ‘winter pressures’ project.

We have met all our regulatory requirements, and our most recent Care Quality Commission review positively endorsed our performance levels. Looking forward, we plan to review our strategy over the forthcoming year to ensure that it remains relevant. We will also look to expand on the achievements of the last twelve months in order to ensure that we continually meet all the objectives we have set ourselves.

All of the above just goes to emphasise how important the support that the Charity receives from our local community is and how we would not be able to continue to operate, as we do, without this support. We have been more fortunate than ever to have this community backing with the cost of living crisis impacting our supporters as much as it has on the Hospice. We very much value the ongoing contribution that our local community makes towards the present and the future of Pendleside Hospice.

Objectives and activities

The objectives of the charity are to promote the relief of sickness by providing or aiding in the provision of medical, social and spiritual treatment and attention for persons who are suffering from any chronic or terminal illness.

Activities

The main activities undertaken are:

Pendleside has reviewed it’s strategy in the last year which sets out the vision, mission, values and aims for the next four years:

Mission:

Pendleside exists to enhance the quality of life for people living in our community with advancing long term and life limiting illnesses, through to end of life and in bereavement

Vision:

Every adult with advancing long term and life limiting illnesses and those most important to them within our community will receive timely and equitable access to high quality services, delivered by appropriately trained staff and volunteers.

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Our values underpin everything that we do:

Our overall aims:

Proud to be pendleside:

Our people identify Pendleside as a good place to work/volunteer and we are the health care organisation of choice to work/volunteer for.

Community collaberation:

To build a compassionate community involving, influencing and working in partnership with all stakeholders to enhance palliative and end of life care.

Care delivery:

To reach out to as many people as possible who need our care.

Governance:

The Hospice meets its regulatory requirements and manages risk effectively.

Sustainablity:

Services are sustainable in the changing external environment. Our care is free of charge to those we serve.

The policy of the Trustees is to generate sufficient Incoming Resources as to (a) provide adequate income to cover the anticipated increase in operating costs of the charity and (b) build sufficient reserves as to cover future growth and capital investment. In addition, the Trustees need to be very aware of and allow for possible variations in funding streams from major donors such as the NHS.

The grant income previously received from the NHS continued to be an important source of income in maintaining our services, funding approximately 24% of the Hospice operating costs. It was pleasing that this continued, with a small 1.7% uplift, with the reorganisation of the NHS and the cessation of East Lancashire Clinical Commission group, from whom the funding was previously received, and transfer to the new Lancashire and South Cumbria Integrated Care Board.

However, whilst the small increase was received, this in no way reflected the overall increase in costs that the Hospice experienced during the year. In particular, increases in wage inflation nationally, and with the National Living Wage, as well as the remuneration rises in NHS pay, all impacted on both clinical and non-clinical salaries at the Hospice, and have put pressure on the Hospice to stay competitive in the job market. On top of this, we continued to see substantial increases in our general running costs due to large rises in the rate of inflation.

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Income from Pendleside’s hard working supporters, remained excellent and grew in comparison to the previous year. This was, in large, due to the reinstatement of community fundraising initiatives following the removal of Covid restrictions, which allowed supporters to, once again, organise their own events, and for Pendleside’s own major events’ program to be fully reinstated, alongside other new events, which were introduced during the year.

As always, the Board wishes to express its full appreciation for this outstanding level of public support, without which the Charity would not be able to continue its operations.

The objectives for 2022/23 were to continue to maintain all existing Hospice services, whilst developing and enhancing them, wherever possible, within financial and other resource constraints.

All service developments and enhancements during the year were driven by the Charity's understanding of its community and service users' needs, along with national and local guidance and, where appropriate, these were implemented in partnership with the statutory services and other independent organisations.

A new group was set up in the year called “Pendleside Together”. This consists of service users, patients and stakeholders and was hugely influential in analysing service effectiveness, recognising and helping to deliver service improvements and assisting in the overall development of services.

Volunteers

The Trustees recognise the huge amount of work put in by the Hospice’s volunteers, which support and complement the work of the Charity's employees. Pendleside Hospice simply could not function without its volunteers, and there are, currently, over 450 volunteers working across all Hospice services, including the clinical services, charity shops, reception, administration, fundraising, gardening counselling, driving, gardening and our Friends of Pendleside (who support the Hospice with ad hoc events throughout the year). As well as all this, we cannot forget to mention the high level of commitment from our trustee team who contribute to the overall running of the Hospice.

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Unfortunately, due to having to suspend many volunteer roles during the Covid pandemic, particularly as many of our volunteers were in the clinically vulnerable category, it meant that the Hospice has lost a significant number of its volunteers since early 2020.

Over the last twelve months, we have continued to build back our volunteer workforce, led by our Volunteer Coordinator. This has included reviewing our volunteer policy, induction processes and training. We now have a ‘volunteer representative group’, which looks to ensure that all our volunteers feel able to influence the role of volunteering across all areas of the Hospice.

It is important to mention that the financial statements exclude the value of voluntary help, as this is extremely difficult to quantify. However, having built back our volunteer workforce over the last two years, over the forthcoming year the plan is to make an attempt to quantify the work they do and the value that they contribute to the Hospice.

Public Benefit Statement

The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when setting the Charity's aims and objectives and in planning future activities and setting policy for the year.

The Charity's prime objectives continue to be the promotion and provision of specialist palliative and end of life care, of the highest quality, for the people of Burnley and Pendle with advancing, long term and life limiting illnesses and to do so in partnership with statutory services and other independent organisations. Its aim is to promote the quality of life for each individual accessing its services as well as that of their families, friends and carers. This care is provided free of charge to all people of seventeen years and over. Inpatient care is also provided for patients from the Rossendale area.

Achievements and performance

Summary of main achievements

As already detailed, in 2022/23, our main achievements have been the continuation and maintenance of our existing service provision whilst continuing to develop and enhance our services and respond to the needs of people living with advancing, long term and life limiting illnesses in our community, including those affected by the aftermath of the pandemic and cost of living crisis. In particular, responding to the needs of patients with either a cancer or noncancer diagnosis and those with multiple comorbidities, along with their families and carers. This has meant responding to people with more complex needs and ensuring that we provide responsive, safe and effective care.

Whilst there were many achievements throughout the year, a particular success was working collaboratively with the NHS, other charities, the regulated care sector and social care to meet the needs of palliative and end of life care patients locally.

The hospice at home single point of access for palliative and end of life care fast track referrals has been one of the prime examples of our success in ensuring responsiveness and effective coordination of care for patients across Burnley and Pendle, working with other charities, the NHS and domiciliary care agencies.

The Hospice was successful in securing a tender with the NHS to increase its hospice at home night sit provision, and started this in the latter part of the year by recruiting into new roles to support patients overnight in their own home. The plan is now to continue with this development over the forthcoming year.

The Hospice was also successful in being awarded “Winter Pressure” funding by the NHS in order to deliver on several projects. The aim here was to support the NHS during the winter months and to help with the avoidance of unnecessary admissions to hospital, and where admissions had taken place to support rapid discharge, these projects included:-

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

All of the above resulted in an increased number of referrals to the different departments across the Hospice.

Our new Health, Wellbeing and Rehabilitation service (formerly known as Day Services), which was introduced post Covid, grew from strength to strength, over the year, by caring for even more patients, increasing its support to carers through introduction of various carers groups and, overall, increasing the number of contacts they had with all service users. This included developing the service it offers to people with dementia. In fact, this evolved so well that an agreement to employ an Admiral Nurse (specialised dementia nurse) has been approved, which will enable the Hospice to develop its services for people with dementia with the recognition that dementia is now the leading cause of death in the UK.

Feedback from service users during the year was overwhelmingly positive, with all who responded to our service user survey stating they would recommend Pendleside services to others in similar circumstances.

Likewise, our staff survey was also very positive. Of those who responded:-

We were also delighted to be awarded Burnley Employer of the Year in the 2022 Burnley Business Awards and to be shortlisted in the prestigious Lancashire Red Rose Business Awards in the employer of the year and not for profit categories.

Overall 1,744 service users accessed services and had a contact, either by telephone, face to face appointment or were an inpatient. The breakdown of this was:-

This was a similar number to the previous year but, as mentioned earlier, the number of contacts per service user increased significantly.

The breakdown of service delivery is detailed below:

All the above achievements highlight the Hospice’s ongoing effectiveness in helping to supporting people living in the local area with advancing long term and life limiting illness, their families and carers.

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

In summary, the financial year ended 31st March 2023, the charity generated a surplus of £445,061, compared with a surplus of £513,306 in the previous year. Total funds at the year-end came to £13,354,885. Greater detail on the income, expenditure and the financial position for Pendleside Hospice for the year ended 31st March 2023 are shown, on pages 16 to 18 of the financial statements.

Unlike the previous two years, 2022/23 was, on the whole, largely unaffected by the effects of the pandemic. This enabled us to carry out a full program of fundraising activities and see income that was missing from the ‘Covid years’. The effects of the high levels of inflation and the ‘cost of living crisis’ were felt by the Hospice and the staff working here. However, a large amount of funding was received from individuals leaving us bequests in their wills alongside a one off, non-recurrent, NHS grant running from December to March with the aim of providing additional support to the NHS due to ‘winter pressures’.

With our fundraising activities, being able to return to engaging with the community and our supporters in mass participation events made a huge difference and we were able to exceed the previous year’s fundraising total by over £100,000, which even exceeded the total for the non-Covid year 2019/20.

As we were able to open our retail outlets for the whole year, we saw a record income from our shops, and

surpassed £800,000 for the first time.

As already mentioned, income from ‘gifts in wills’ exceeded all expectations and reached a record 12-month high of just over £1.5m. This was the main reason for the charity being able to report a surplus for the year. This form of income is crucial but so unpredictable.

The NHS continues to support the Hospice through an annual grant though inflation has eroded this, substantially. However also as mentioned earlier, extending our services during the winter period was recognised through additional funding towards the end of the year.

The movements in the Bank of England base rate have enabled the charity to earn extra income from our ability to place reserves on better deposit terms but the value of our investment portfolios fell by around £580,000 during the financial year.

With our expenditure, the impact of high levels of inflation had a detrimental impact on the Hospice particularly with staff pay, food costs and utilities, though we have been relatively fortunate with our heat, light and power contracts. This was largely due to timing with expiration dates being in our favour.

Moving into the new financial year 2023/24, we were informed that the annual NHS support grant would not be increased, meaning that inflation would further erode our overall funding levels for the coming year. Prior to receiving the confirmation of this decision we endeavoured to support our staff through awarding the best possible, and affordable, pay increase, with effect from April 2023. Labour markets remain competitive and the Charity recognised the need to have a stable workforce in order to meet its desired service levels. The result was that a budget was set for 2023/24 that projected an operational deficit of over £560,000. With challenging income targets in several areas, we will be relying on the generosity and continued support of our community as well as unexpected, for want of a better phrase, ‘windfalls’ in order to minimise or avoid a deficit for the 12-month period.

As always, every effort will be made towards controlling our expenditure levels. Inflationary pressures look set to continue throughout the year and running costs will be much higher than in previous years. The agreement finally reached with pay for clinical staff employed by the NHS has proved not to be too critical though pension, unsociable hour pay and other benefits receivable by NHS staff does make it a constant struggle to find new and replacement care workers. With industrial action still ongoing in the NHS ranks, the potential for this to cause problems for Pendleside has not gone away. In addition, salaries, which are our prime area of cost, will be impacted through future changes to the National Living Wage rate. With constantly increasing staff costs, the efforts to generate income to just stand still need to be greater and ever more creative.

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Investment Policy

Under our current ‘Memorandum and Articles of Association’, the Charity has the power to make any investment that the Trustees see fit. As in previous years, the Trustees have reviewed and considered the most appropriate policy for investing funds and believe that a varied portfolio of stocks, shares, unit trusts and deposit accounts continues to meet the requirements of the Charity. In addition, the Charity also obtains rental receipts from the investment in property, which currently includes a house and a small number of flats.

The Finance and Resources Committee maintains a vigilant eye on our investment policy. An update of this was undertaken during the summer and this confirmed the continued use of third party investment managers with the aim of providing a balanced portfolio that targets regular income and capital growth. These appointed investment managers have delegated responsibility to manage the investment portfolio in order to maximise returns. The investment portfolios held by the Charity are monitored on a monthly basis by the Finance and Resources Committee.

Additionally, it must be highlighted that these investments are all quoted on the stock exchange and, as a result, they are subject to fluctuations in the markets. They are designed to grow over a number of years and, therefore, when viewing the performance of the investment portfolio, it is important that this is looked at over a longer term period rather than making judgements over a single year.

The market volatility seen since the Covid pandemic fully struck in March 2020 has led to significant fluctuations in the valuations of investments during the last three years. The global energy crisis, followed by the outbreak of conflict in Ukraine, rapid increases in the rate of cost inflation and other unexpected events such as the Truss/Kwarteng minibudget have all contributed to a rollercoaster effect on investments and, in particular, the value of equities. Peaks and troughs have come and gone but the recovery, of around 7%, that we saw during the latter half of 2022/23 was insufficient to reverse the 12% deterioration experienced in the first 6 months.

Principal Funding Sources

There has been no change in the sources of our primary funding. These remain as supporter donations, legacy bequests, income from our charity retail shops, fundraising activities, our prize lottery scheme and investment income. On top of all this is the annual NHS support grant. The total of our Incoming Resources for the year amounted to £5,690,634.

Reserves Policy

A statement of Funds is shown in Note 24 to the accounts.

At the year-end, our total reserves amounted to £13,354,885 of which £114,866 was held in restricted funds.

The reserves that the Hospice has accumulated over the years enables the Charity to plan for the future with confidence and security. The Trustees continue to ensure that our reserves are invested prudently and wisely with the intention of providing the local community with the best possible services, for the foreseeable future. However, we recognise that maintaining our efforts to sustain and grow our income is crucial. This will allow us to introduce new services and to expand and sustain existing ones.

The Trustees reserves policy remains unchanged from that stated in previous years. This requires general funds to be maintained at a level that will ensure the Charity's services can continue during a period of unforeseen difficulty, such as a significant downturn in our income levels. This year’s accounts show a surplus of £445,061, after taking into account investment losses of £579,418. 2021/22 end with a surplus of £513,306 but with investment gains of around £191,238. Legacy income came to a record level of £1,511,272 with 2021/22 at £512,068. As a result of the unpredictability of some of our income streams, we have budgeted for a deficit in the financial year 2023/24.

Included in the total reserves is a designated fund of £4,412,363, of which £2,412,363 represents the book value of our fixed assets. As in previous years, the Trustees considered the level of general funds at the end of the financial year and have agreed to continue with the designation of funds to support some of our priorities. These priorities are aligned with the organisational strategy and the future development of the Charity’s services.

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

In 2018, the Trustees made the decision to designate £2million of its reserves towards service lines, staff training and staff development, as well as the potential to develop the former Reedley Hall site. This decision took into consideration the challenges that could arise in managing budget deficits and in coping with the possible increases in the demand for our services, including the ever expanding complex needs of people requiring access to the Hospice’s services.

At the start of 2023/24, having taken into account both the amounts of restricted and designated funds, the Charity has the sum of £8,242,559 remaining in our general funds. Based on a medium term financial forecast completed in 2019, the Trustees consider that the size of these funds remains justified. It is felt that this sum is sufficient to ensure business sustainability of the Hospice for several years. The events of the last few years, which include the Covid pandemic, global geopolitical circumstances and the effects if high cost inflation, have highlighted that the future holds great uncertainty. The reassurance that predictions undertaken identify that our reserves are enough to maintain our services in the medium term is very welcome and allows peace of mind for both the Board of Trustees and the Senior Management Team.

Structure, governance and management

The Charity is governed by a Trustee Board that takes overall responsibility for its work. They delegate day to day management to a Senior Management team including the Chief Executive, Finance and Business Manager, Head of Income Generation and Clinical Services Manager.

The Charity is constituted as a company limited by guarantee (No 02280991) and its Articles of Association provide that one third of Directors shall retire at each Annual General Meeting. The Company is registered as a Charity (No. 700993) with the Charity Commission and operates from its own purpose built hospice known as Pendleside in Colne Road, Reedley, Burnley. The Executive Committee appoints the Chairman from time to time.

New Trustees are sought from time to time, usually to fill a perceived gap in the skill mix of the current Board. This is done by advertising a vacancy on the Hospice website, via social media or in the local press or by a direct approach to people who may have the right skills to fulfil the role of Trustees. All potential Trustees, on application, then receive a rigorous recruitment process and six month probationary period, prior to their appointment being confirmed. One Trustee stepped down from their role of Trustee and the Hospice’s Treasurer, Roger Cornes, stepped down from his role as treasurer with the intention to retire fully from the role as Trustee at the next Annual General Meeting. Helen Binns, already an existing Trustee, took over the role of Treasurer. Plans were made to recruit into vacant roles, which have been carried forward to the following year.

The board normally meets quarterly and has delegated authority to four sub committees on specific matters. These are clinical governance, finance and resources, income generation and people (employees and volunteers). Each committee has formal terms of reference, meet regularly and report to the Board at its quarterly meeting. Following Covid whilst some of these meetings have been reinstated to face to face, some are hybrid and some continue virtually. Each Trustee takes an active role (along with relevant senior and relevant operational managers) in one or more of these sub committees.

New Trustees undergo training on their legal obligations under Charity and Company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the Charity. They also meet key employees, service users and other Trustees. Trustees are encouraged to attend appropriate training events and relevant external meetings where these will facilitate the undertaking of their role.

The charity had an average of 140 employees working across the organisation during 2022/23, which equates to 107 whole time equivalent (WTE). In addition, four staff work under a practising privileges agreement and the Hospice has a Bank of Registered Nurses and Auxiliary Nurses.

A Remuneration Committee, consisting of nominated Trustees and the Senior Management Team, determines the pay and remuneration of key management personnel. The Committee has regard to rate of inflation, general salary levels, public sector pay scales as well as information from other Hospices in setting levels of remuneration.

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The Board as a whole and each Director as a Trustee are collectively responsible for the wellbeing of the Charity within a framework of prudent and effective controls, which enable risk to be assessed and managed. They have also to ensure that the aims and objectives of the Charity are maintained and to understand its obligations to all stakeholders, the local community and statutory services that help to finance its operations.

The Trustees continue to assess and log clinical and business risks and implement systems to mitigate them. Risks are mitigated by the implementation of procedures for the authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charitable company. These procedures are periodically reviewed to ensure that they still meet the needs of the Charity. The Trustees have delegated responsibility for the management and implementation of such procedures to the operational management of the Charity, including a duty to identify and evaluate risks and report failings and corrective action arising.

Risks are reviewed in a number of different ways. All aspects of the Charity's service provision are governed by policies and procedures that are required to comply with the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014, under the regulation and inspection of the Care Quality Commission. All of these are reviewed internally at least every three years, some annually or more often if there are changes to legislation or best practice guidance. Action is identified to correct or improve practice (thereby mitigating risk) as appropriate under the direction of the Charity's Quality Assurance Group. Other risk items may be identified for corrective action at regulatory inspection.

Particularly important, in the last year, has been managing the risk brought about by of the cost of living crisis, particularly in relation to expenditure and remuneration, with salaries increasing significantly across the UK in the last twelve months. The remuneration committee took a balanced view of staff pay and staff retention to respond appropriately to the pressures. Careful tendering for support services, particularly utilities, also ensured cost increases were mitigated, as much as they could be.

The Hospice has a dedicated policy for the Reporting and Management of Adverse Events including serious incidents. All such incidents (clinical and non-clinical) are recorded and reported to an appropriate subcommittee of Trustees and senior and operational managers. A summary report of all adverse incidents is made to the Board quarterly. The operational management of the Charity is responsible for identifying and implementing corrective action arising from adverse incidents as appropriate.

The Charity is proactive in assessing specific risks under the terms of its risk management policy and procedure. Many of these relate to general health and safety and the safety of our service users but others are of a specifically financial nature for which the Trustees commission the services of external auditors. Examples include the audit of the Charity's internal financial controls, payroll processing and lottery administration.

The Hospice is registered with the Fundraising Regulator and an objective of the charity is to comply with the voluntary regulation scheme and the Code of Fundraising Practice. Compliance is monitored by the Income Generation Subcommittee and action is agreed, identified and monitored to maintain and improve fundraising standards; this includes ensuring practices protect people and others from unreasonable intrusion on a person’s privacy and unreasonably persistent approaches or undue pressure to give in the course of fundraising for the Hospice.

No complaints were received regarding fundraising practice in the twelve-month reporting period.

The liability of each member by way of their guarantee to the Company is to contribute a sum not exceeding one pound to the assets of the Company if so required on the winding up of the Company.

Funds held as custodian trustee

There are no funds held as custodian.

PENDLESIDE HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Statement of trustees' responsibilities

The trustees, who are also the directors of Pendleside Hospice for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The trustees' report was approved by the Board of Trustees.

Roger L. Cornes

.............................. David Brown Trustee Dated: ......................... 16/10/2023

.............................. Roger Cornes Trustee Dated:......................... 20/10/2023

PENDLESIDE HOSPICE

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF PENDLESIDE HOSPICE

Opinion

We have audited the financial statements of Pendleside Hospice (the ‘Charity’) for the year ended 31 March 2023 which comprise the Consolidated statement of financial activities, the Consolidated and Charity balance sheets, the Consolidated 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity 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 Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

PENDLESIDE HOSPICE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PENDLESIDE HOSPICE

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Charity for the purpose 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 Charity’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's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

PENDLESIDE HOSPICE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PENDLESIDE HOSPICE

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we have considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Charity's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, Charities Act, employment law, health and safety regulations, pensions legislation and tax legislation.

PENDLESIDE HOSPICE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PENDLESIDE HOSPICE

Audit response to risks identified

Our procedures to respond to risks identified included the following:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Ceri Dixon BSc ACA (Senior Statutory Auditor) for and on behalf of PM+M Solutions for Business LLP

for and on behalf of PM+M Solutions for Business LLP ......................... 20/10/2023 Chartered Accountants Statutory Auditor New Century House Greenbank Technology Park Challenge Way Blackburn Lancashire BB1 5QB

PM+M Solutions for Business LLP is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

PENDLESIDE HOSPICE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
funds
2023
Notes
£
Income and endowments from:
Donations and legacies
3
2,520,829
Charitable activities
4
1,134,510
Other trading activities
5
1,602,707
Investments
6
276,206
Other income
7
-
Turnover of trading subsidiary
104,894
Total income
5,639,146
Expenditure on:
Raising funds
9
930,138
Trading cost of
subsidiary
11
89,214
Charitable activities
10
3,611,432
Total expenditure
4,630,784
Net gains/(losses) on
investments
(579,418)
Net incoming resources
before transfers
428,944
Gross transfers between
funds
-
Net movement in funds
428,944
Fund balances at 1 April 2022
12,811,075
Fund balances at 31 March
2023
13,240,019		 Restricted
funds
2023
£
-
51,488
-
-
-
-
51,488
-
-
35,371
35,371
-
16,117
-
16,117
98,749
114,866		 Total
Unrestricted
funds
2023
2022
£
£
2,520,829
1,376,703
1,185,998
990,118
1,602,707
1,509,756
276,206
183,594
-
30,005
104,894
95,521
5,690,634
4,185,697
930,138
864,858
89,214
72,934
3,646,803
3,508,800
4,666,155
4,446,592
(579,418)
191,238
445,061
69,657
-
579,179
445,061
509,522
12,909,824
12,301,553
13,354,885
12,811,075		 Restricted
funds
2022
£
-
608,114
-
-
-
-
608,114
-
-
25,151
25,151
-
582,963
(579,179)
3,784
94,965
98,749		 Total
2022
£
1,376,703
1,598,232
1,509,756
183,594
30,055
95,471
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Turnover of trading subsidiary
Total income
Expenditure on:
Raising funds
9
Trading cost of
subsidiary
11
Charitable activities
10
Total expenditure
Net gains/(losses) on
investments
Net incoming resources
before transfers
Gross transfers between
funds
Net movement in funds
Fund balances at 1 April 2022
Fund balances at 31 March
2023
4,793,811
864,858
72,934
3,533,951
4,471,743
191,238
513,306
-
513,306
12,396,518
12,909,824

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

PENDLESIDE HOSPICE

GROUP BALANCE SHEET

AS AT 31 MARCH 2023

2023
Notes
£
£
Fixed assets
Tangible assets
17
2,412,363
Investments
18
10,631,991
13,044,354
Current assets
Stocks
19
2,500
Debtors
20
438,985
Cash at bank and in hand
258,878
700,363
Creditors: amounts falling due within
one year
21
(389,832)
Net current assets
310,531
Total assets less current liabilities
13,354,885
Income funds
Restricted funds
23
114,866
Unrestricted funds
Designated funds
24
4,412,363
General unrestricted funds
8,242,559
Revaluation reserve
585,097
13,240,019
13,354,885
The financial statements were approved by the Trustees on .........................
..............................
..............................
David Brown
Roger Cornes
Trustee
Trustee
Company registration number 02280991		 2022
£
£
2,417,752
10,094,808
12,512,560
2,500
516,892
218,239
737,631
(340,367)
397,264
12,909,824
98,749
4,417,752
7,808,226
585,097
12,811,075
12,909,824		 2022
£
£
2,417,752
10,094,808
12,512,560
2,500
516,892
218,239
737,631
(340,367)
397,264
12,909,824
98,749
4,417,752
7,808,226
585,097
12,811,075
12,909,824
12,512,560
397,264
12,909,824
98,749
12,811,075
12,909,824

PENDLESIDE HOSPICE

CHARITY BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
17
Investments
18
Current assets
Stocks
19
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within
one year
21
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
23
Unrestricted funds
Designated funds
24
General unrestricted funds
Revaluation reserve		 2023
£
£
2,412,363
10,632,091
13,044,454
2,500
440,992
254,371
697,863
(387,432)
310,431
13,354,885
114,866
4,412,363
8,242,559
585,097
13,240,019
13,354,885		 2022
£
£
2,417,752
10,094,908
12,512,660
2,500
527,210
207,761
737,471
(340,307)
397,164
12,909,824
98,749
4,417,752
7,808,226
585,097
12,811,075
12,909,824		 2022
£
£
2,417,752
10,094,908
12,512,660
2,500
527,210
207,761
737,471
(340,307)
397,164
12,909,824
98,749
4,417,752
7,808,226
585,097
12,811,075
12,909,824
12,512,660
397,164
12,909,824
98,749
12,811,075
12,909,824

16/10/2023 The financial statements were approved by the Trustees on .........................

Roger L. Cornes
.............................. ..............................
David Brown Roger Cornes
Trustee Trustee

Company registration number 02280991

PENDLESIDE HOSPICE

GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 32 1,125,692 1,019,667
Investing activities
Purchase of tangible fixed assets (97,188) (45,896)
Purchase of investments (3,443,740) (4,401,520)
Proceeds from disposal of investments 2,179,669 3,109,443
Investment income received 276,206 183,594
Net cash used in investing activities (1,085,053) (1,154,379)
Net cash used in financing activities - -
Net increase/(decrease) in cash and cash
equivalents 40,639 (134,712)
Cash and cash equivalents at beginning of year 218,239 352,951
Cash and cash equivalents at end of year 258,878 218,239

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Pendleside Hospice is a private company limited by guarantee incorporated in England and Wales. The registered office is Pendleside Hospice, Colne Road, Reedley, Burnley, Lancashire, BB10 2LW.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's Commission, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Basis of consolidation

The consolidated accounts of the Group include the financial statements of the charity and its subsidiary undertaking for the year ended 31 March 2023. A seperate Statement of Financial Activities for the charity has not been presented because the subsidiary has taken advantage of the exemption by section 408 of the Companies Act 2006.

1.4 Investments

Investments are stated at cost less provision for impairment.

1.5 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.6 Incoming resources

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.7 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs are those incurred in connection with administration of the company and compliances with constitutional and statutory requirements. Cost of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

1.8 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings 2% straight line Fixtures and fittings 20% straight line Computers 25% straight line Motor vehicles 25% straight line

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.9 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.10 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.11 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.13 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.14 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.16 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities incorporating income and expenditure account over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities incorporating income and expenditure account as the related expenditure is incurred.

1.17 Deferred Incoming resources

Lottery income is deferred on the basis of the period to which subscriptions relate.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The main area of judgement that has a risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in relation to the useful economic lives of the charity's fixed assets.

3 Group donations and legacies

Unrestricted Restricted
funds
funds
£
£
Donations
1,009,557
-
Legacies receivable
1,511,272
-
2,520,829
-
For the year ended 31 March 2022
1,376,703
-		 Total
2023
£
1,009,557
1,511,272
2,520,829
-		 Total
2022
£
864,635
512,068
1,376,703
1,376,703

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4 Group charitable activities

2023
£
Operation of Hospice
1,185,998
Analysis by fund
Unrestricted funds
1,134,510
Restricted funds
51,488
1,185,998
Other trading activities
Unrestricted Restricted
Total
funds
funds
2023
£
£
£
Fundraising events
359,378
-
359,378
Charity shop sales
820,977
-
820,977
Hospice lottery
400,628
-
400,628
Other fundraising activities
21,724
-
21,724
Fundraising income
1,602,707
-
1,602,707
For the year ended 31 March 2022
1,509,756
-
-		 2022
£
1,598,232
990,118
608,114
1,598,232
Total
2022
£
399,248
667,444
409,751
33,313
1,509,756
1,509,756

5 Other trading activities

6 Investment Income

Unrestricted
Restricted
funds
funds
£
£
Rental income
30,210
-
Income from listed investments
156,691
-
Interest receivable
89,305
-
276,206
-
For the year ended 31 March 2022
183,594
-		 Total
2023
£
30,210
156,691
89,305		 Total
2022
£
29,192
134,749
19,653
276,206 183,594
- 183,594

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

7 Other income

Unrestricted Unrestricted
funds funds
general general
2023 2022
£ £
Meals on wheels 104,894 95,471
Insurance monies received - 30,055
104,894 125,526

8 Gift Aid payment by trading subsidiary

The wholly owned trading subsidiary Pendleside Trading Ltd is incorporated in the United Kingdom and pays all of its profits to the charity by gift aid. Pendleside Trading Ltd operates Meals on Wheels in the community. The charity owns the entire share capital. A summary of the trading results for the year ended 31 March 2023 is:

Turnover
Operating costs
Trading profit
Gift aid payment to charity
Retained in subsidiary
Represented by:
Restricted income funds
Unrestricted income funds
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Total net assets
Aggregate share capital and reserves		 Total
2023
£
104,804
(89,214)
15,590
15,590
-
-
-
14,509
(14,409)
100
100		 Total
2022
£
95,521
(72,934)
22,587
22,587
-
-
-
20,317
(20,217)
100
100

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

9 Raising funds

Unrestricted
Restricted
funds
funds
£
£
Fundraising and publicity
Christmas cards and merchandising products
11,613
-
Publicity and brochures
60,050
-
Events expenditure
85,347
-
Bank charges
18,873
-
Telephone costs
4,413
-
Insurance costs
11,941
-
Voluntary income staff costs
145,924
-
Costs of raising funds
338,161
-
Trading costs
Prize money and commission
72,900
-
General expenses
25,705
-
Light, heat and water costs
29,240
-
Repairs and maintenance
10,035
-
Incidental expenses
30,830
-
Operating lease rentals
108,054
-
Motor and travel costs
5,862
-
Staff costs
296,532
-
Depreciation and impairment
12,819
-
Fundraising trading costs
591,977
-
930,138
-
For the year ended 31 March 2022
Cost of raising funds
309,878
-
Fundraising trading costs
554,980
-
864,858
-		 Total
2023
£
11,613
60,050
85,347
18,873
4,413
11,941
145,924
338,161
72,900
25,705
29,240
10,035
30,830
108,054
5,862
296,532
12,819
591,977
930,138
-
-
-		 Total
2022
£
9,173
51,413
81,913
13,400
3,786
983
149,210
309,878
75,225
9,723
42,524
13,129
19,632
106,382
3,861
267,044
17,460
554,980
864,858
309,878
554,980
864,858

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10 Group charitable activities

Staff costs
Depreciation and impairment
Water
Gas and electricity
Repairs and maintenance
Recruitment
Travel expenses
Training
Healthcare
Uniforms
Telephone costs
Insurance
Medical supplies and bought in services
Cleaning costs
Office costs, stationery, postage and IT
Registration fees and subs
Incidental expenses
Irrecoverable VAT
Catering costs
Patient transport costs
Bank charges
Share of governance costs (see note 12)
Analysis by fund
Unrestricted funds
Restricted funds		 2023
£
2,963,233
95,681
8,912
55,502
107,987
8,081
36,046
15,694
29,122
9,083
4,412
11,941
106,831
28,041
42,838
20,794
1,577
(14,980)
64,036
16,622
7,984
3,623,881
22,922
3,646,803
3,611,432
35,371
3,646,803		 2022
£
2,889,609
94,081
13,229
45,456
92,142
12,856
28,085
18,846
28,440
5,808
3,787
18,666
88,997
19,335
37,239
5,236
7,453
15,433
51,580
13,211
13,401
3,504,646
29,305
3,533,951
3,508,800
25,151
3,533,951

11 Trade of subsidiary

In the year to 31 March 2023 the operating costs of the trading subsidiary amounting to £89,214 (2022: £72,913) comprised wholly of unrestricted expenditure.

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

12
Support costs
Support
costs
Governance
costs
2023
£
£
£
Audit fees
-
8,000
8,000
Accountancy
-
5,150
5,150
Legal and professional
-
9,772
9,772
-
22,922
22,922
Analysed between
Charitable activities
-
22,922
22,922
13
Net movement in funds
2023
£
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's financial
statements
8,000
Fees payable to the company's auditor for other services provided
5,150
Depreciation of owned tangible fixed assets
102,577		 2021
£
8,000
4,500
16,805
29,305
29,305
2022
£
8,000
4,500
111,541

14 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year, neither were they reimbursed expenses during the year. No charity trustee received payment for professional or other services supplied to the charity.

The total donations received from the trustees in the year was £106 (2022: £2,418).

15 Employees

The average monthly number of employees during the year was:

Nursing staff - inpatient
Nursing staff - day therapy
Nursing staff - hospice at home
Nursing staff - spiritual care and medical
officers
Administration staff and general managers
Ancilliary
Total		 Group
2023
Number
22
8
25
6
34
12
107		 Group
2022
Number
24
8
20
4
32
12
100		 Charity
2023
Number
22
8
25
6
32
12
105		 Charity
2022
Number
24
8
20
4
30
12
98

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

15
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
£
2,900,533
288,103
189,699
3,378,335		 2022
£
2,883,918
252,789
192,762
3,329,469		 (Continued)
2023
2022
£
£
2,900,533
2,862,762
288,103
250,885
189,699
192,131
3,378,335
3,305,778		 (Continued)
2023
2022
£
£
2,900,533
2,862,762
288,103
250,885
189,699
192,131
3,378,335
3,305,778
3,305,778

The key management personnel of the group comprise those of the Hospice and they key management personnel of its wholly owned subsidiary Pendleside Trading Limited.The total remuneration earned by key management personnel during the year was £239,567 (2022: £313,772).

The number of employees whose annual remuneration was more than £60,000 is as follows:

2023 2022
Number Number
£60,001 - £70,000 2 -
£70,001 - £80,000 1 1
£90,001 - £100,000 - 1

16 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

17 Tangible fixed assets

Group and Charity
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
Other changes
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 Freehold
buildings
Fixtures and
fittings
£
£
3,041,040
487,133
80,000
17,129
3,121,040
504,262
755,156
419,662
55,324
25,966
-
-
810,480
445,628
2,310,560
58,634
2,285,884
67,471		 Computers Motor vehicles
£
£
122,486
155,117
59
-
122,545
155,117
89,082
124,124
8,468
12,819
-
-
97,550
136,943
24,995
18,174
33,404
30,993		 Total
£
3,805,776
97,188
3,902,964
1,388,024
102,577
-
1,490,601
2,412,363
2,417,752

Land and buildings with a carrying amount of £1,034,903 were revalued at 31 August 2018 by independent valuers not connected with the Charity on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

At 31 March 2023, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £893,251 (2022 - £920,877).

Included in land and buildings is freehold land at valuation of £664,476 (2022 - £664,476) which is not depreciated.

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Fixed asset investments

Group and Charity
Listed
investments
Unlisted
investments
Cost or valuation
At 1 April 2022
7,205,082
2,889,726
Additions
1,780,859
1,662,881
Valuation changes
(726,888)
-
Disposals
(1,490,194)
(689,475)
At 31 March 2023
6,768,859
3,863,132
Carrying amount
At 31 March 2023
6,768,859
3,863,132
At 31 March 2022
7,205,082
2,889,726
2023
£
Other Unlisted Investments:
Marsden Building Society
1,000,014
Close Brothers
592,814
Handelsbanken
2,270,304
3,863,132
Group
Group
Charity
2023
2022
2023
Other investments comprise:
£
£
£
Investments in subsidiaries
-
-
100		 Total
£
10,094,808
3,443,740
(726,888)
(2,179,669)
10,631,991
10,631,991
10,094,808
2022
£
601,054
578,893
1,709,779
2,889,726
Charity
2022
£
100

All the listed investments are quoted on the UK Stock Exchange. Other fixed asset investments are Bank and Building Society balances.

The charity holds the whole of the issued share capital of Pendleside Trading Limited (company number: 13019012), a company registered in England and Wales. Its principal activity is that of a food retail service.

19 Stocks

Stocks
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Finished goods and goods for resale 2,500 2,500 2,500 2,500

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20
Debtors
Amounts falling due within one year:
Trade debtors
Amount owed by parent undertaking
Other debtors
Prepayments and accrued income		 Group
2023
£
100,121
-
263,727
75,137
438,985		 Group
2022
£
36,670
-
315,345
164,877
516,892		 Charity
2023
£
91,424
12,009
263,727
73,832
440,992		 Charity
2022
£
27,890
20,157
315,345
163,818
527,210

21 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income
Deferred Income
Deferred income at 1 April 2022
Movement in the year
Deferred income at 31 March 2023		 Group
2023
£
88,430
124,649
176,753
389,832		 Group
2022
£
28,217
109,095
203,055
340,367		 Charity
2023
£
88,430
124,649
174,353
387,432
Group
97,070
(28,009)
69,061		 Charity
2022
£
28,217
109,095
203,055
340,367
Charity
97,070
(28,009)
69,061

The deferred income balance of £69,061 (2022: £97,070) as at 31 March 2023, includes £68,231 (2022: £74,263) which relates to the lottery fund and £830 (2022: £22,807) which relates to customer sponsorship/events.

22 Retirement benefit schemes

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £189,699 (2022: £192,762).

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

23 Restricted funds

Group and Charity

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Balance at
1 April 2021 resources expended 1 April 2022 resources expended 31 March 2023
£ £ £ £ £ £ £ £
94,965 608,114 (25,151) (579,179) 98,749 51,488 (35,371) 114,866

The transfer from restricted funds to unrestricted funds in the prior year relates to a number of grants received of restricted nature, whereby the relating expenditure can not be accurately split from the charitable expenditure in the year.

£484,897 - NHS England funding relating to additional patient beds throughout the year.

£62,079 - CCG funding relating to additional patient beds throughout the year.

£32,203 - Covid relating government funding to aid with costs relating to wages and the charity shops.

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

24 Designated funds

Group and Charity

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at Balance at Resources Balance at
1 April 2022 expended 31 March 2023
£ £ £
4,417,752 (5,389) 4,412,363
Analysis of net assets between funds
Group and Charity Unrestricted Restricted Total
funds funds
£ £ £
Fund balances at 31 March 2023 are represented by:
Tangible assets 2,317,497 94,866 2,412,363
Investments 10,631,991 - 10,631,991
Current assets/(liabilities) 290,531 20,000 310,531
13,240,019 114,866 13,354,885
Unrestricted Restricted Total
funds funds
£ £ £
Fund balances at 31 March 2022 are represented by:
Tangible assets 2,339,003 78,749 2,417,752
Investments 10,094,908 - 10,094,908
Current assets/(liabilities) 377,164 20,000 397,164
12,811,075 98,749 12,909,824

25 Analysis of net assets between funds

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

26 Summary of Group Funds

Group and Charity
Balance at 1
April 2022
£
Designated funds
4,417,752
General funds
8,393,323
Total unrestricted
funds
12,811,075
Restricted funds
98,749
12,909,824		 Incoming
resources
£
-
5,639,146
5,639,146
51,488
5,690,634		 Movement in funds
Resources
expended
Transfers
Revaluations,
gains and
losses
Balance at
31 March
2023
£
£
£
£
(5,389)
-
-
4,412,363
(4,625,395)
-
(579,418) 8,827,656
(4,630,784)
-
(579,418) 13,240,019
(35,371)
-
-
114,866
(4,666,155)
-
(579,418) 13,354,885

At the year end, the restricted funds carried forward represent £20,000 (2022 - £20,000) relating to the Frank Houghton fund. The remaining funds reflect the net book value of fixed assets funded by grants.

Trustees have considered future challenges of managing a budget deficit, coping with the potential increase in demand for services and complexity of need of people accessing Hospice services, training and development needs of staff and development of the Reedley Hall site and has designated £2million of its reserves, plus the value of the charity's fixed assets towards service lines, training and development of staff and development of the Reedley Hall Site.

27 Contingent Assets

At the year end, the Charity was aware of a number of legacy donations which had been made to the Charity. However the residual legacy donation in each case cannot be measured reliably leading to uncertainty over the total level of income which will be received. In these cases no income has been accrued at the year end.

28 Operating lease commitments

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 Group
2023
£
57,799
180,500
102,250
340,549		 Group
2022
£
60,848
204,917
127,250
393,015		 Charity
2023
£
57,799
180,500
102,250
340,549		 Charity
2022
£
60,848
204,917
127,250
393,015

PENDLESIDE HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

29 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

30 Controlling party

The Charity is under the control of the trustees as noted in the trustees’ report.

31 Analysis of changes in net funds

The Charity had no debt during the year.

32 Cash generated from operations

Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Cash generated from operations		 2023
£
445,061
(276,206)
726,888
102,577
77,907
49,465
1,125,692		 2022
£
513,306
(183,594)
757,047
111,541
(159,728)
(18,905)
1,019,667