Company Registration No. 02280991 (England and Wales) Charity Registration No.700993 PENDLESIDE HOSPICE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 PM+M Solutions for Business LLP Chartered Accountants New Century House Greenbank Teehnology Park Challenge Way Bla¢kburn Lancashire BB1 5QB PENDLESIDE HOSPICE LEGAL AND ADMINISTRATIVE INFORMATION Trustees David Brown David Walker Giles Williams Angela Brown Jaydee Davis Gillian Oakley Mike Steel Helen Binns Mark Idam Amir Saeed Elinor Green Martin Schofield Roger Comes Francesca Chapman Margaret Hynes Appointed 2011112023 Appointed 2011112023 Appointed 2011112023 Resigned 2111112023 Resigned 0310412023 Resigned 0911012023 Chief executive officer Helen Mcvey Secretary Helen Binns Charity number 700993 Company number 02280991 Registered office Pendleside Hospice Colne Road Reedley Bumley Lancashire BB10 2LW Audllor PM+M Solutions for Business LLP New Century House Greenbank Technology Park Challenge Way Blackbum Lancashire BB15QB Investment advisors James Breadey & Sons 7 South Preston Office Willage 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 Independent auditorfs report 15-18 Group Statement of financial activities 19 Group balance sheet 17 Charity balance sheet 18 Group Statement of cash flows 22 Notes to the financial statements 23-38 PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The Iruslees present their annual report and financial statements for the year ended 31 March 2024. The financial stalements have been prepared in accordance with the accounting policies sel out in note 1 to the financial statements and comply with the Charity's goveming document. the Companies Act 2006 and 'Accounting and Reporting by Charities.. Ststement of Recommended Practice applicable to charities preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102)" (effective 1 January 20191. During the financial year, Pendleside was delighted to ￿lebrate its 35th anniversary of providing care to people in Burnley and Pendle. a great achievernenl and something that everybody al the Hospice is very proud of. Al the same time in February 2024 the Hospice was awarded Outstanding by the Care Quality Commission, again another proud achievement. Nevertheless, following on from the last few challenging years, the Iwelve month period ending 31st March 2024 continued in the same vein as we continued to experien￿ the impact of the cost of living crisis. including the significant rise in inflation resulting in increases to our general running costs and the impact of the national living wage increase, significant increases in public and private sector pay resulting in an increase in our salary budget lo slay legal and competitive in the job market. All of this. whilst at the same time receiving a freeze in our NHS grant funding meaning that we had to rely more than ever on our charitable income to fund patient care. The introduction and embedding of new initiatives, such as the ongoing developmenl of our hospice at home and health and wellbeing services and the development of services for people with dementia. including an Admiral Nursing seNice have all proven to be very successful with people receiving seNices continuing to provide excellent feedback. This has all been made possible. and further enhanced. through the dedicated care and supporl provided by our clinical. ancillary, administrative, fijndraising and retail employees and volunteers. The team continuing to work proactively and innovatively in order lo face the challenges being experienced. We simply could nol have achieved this have without the teams from across the Hospi￿ pulling together as one with positivity and detemiination to meet the needs of the people in our local community who need our support. Chaimian's Report We are continuing to see a period of Un￿rtaInty and ever changing times. with the future remaining unclear and proving extremely difficult to plan for. Despite this. Pendleside Hospice continues to step up lo support our local community by adapting and increasing the support it provides to local people. In a positive way. we have been able lo 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 worf( 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 knovAedge 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. Particulady, we have been able to provide more support to people living with dementia. This has been recognised as extremely important for the future, with dementia now being one of the leading causes ofdealh in the UK. We have also supported people who we have identified as being less likely to access Hospice seNi¢es, 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 dinical services, we have, at the same time, continued to focus on income generation and fundraising in order to ensure long temi sustainability of the funding for our seNices. Our retail operation continues to grow and improve, and our "Rewear Revolution" campaign encourages people to both donate and shop in our retail oudets. Fundraising was also very successful with annual events such as Pendle Pub Walk proving as popular as ever. Overall, the level of supporter donations has been very positive. PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Our 'meals on wheels, service, which started in late 2020, has also seen good growih. Besides seNing people who are isolated and vulnerable in the community, it also generated a surplus, which has helped in funding patient care services. 2023124 took us a year closer to the endpoint for implementation of our current organisational strategy. This sel out our priorities for the future and we are pleased to rewrt that we have continued to make some excellent progress with the strategy, continuing with the single point of aC￿sS for fast Irack night sits and further development of our hospi￿ at home night sitting se￿l¢e. We have met all our regulatory requirements. and were delighted to be awarded "Outstanding" following our Care Quality Commission inspeclion in October 2023. This is an endorsement of the hard work and dedication of the whole of Team Pendleside and we are rightly proud of this achievement. 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 lo emphasise how important the supw)rt that the Charity re￿iVeS from our local communily 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 lo have this community backing with the cost of living crisis impacling our supt)orters 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 fulure 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 activilies undertaken are- -Inpalienls -outpatients -Heallh Wellbeing and Rehabilitation Services (fomedy Day Services) -HOspI￿ at Home and community services -Family Support Setvice (including pre and post bereavement support and spiritual carel Pendleside continues to work lowards its current four year strategy which sets out the vision, mission, values and aims for the next four years= Mlsslon: Pendleside exists to enhance the quality of life for people living in our community with advancing long temi and life limiting illnesses, through to end of life and in bereavemenl. Vision: Every adult with advancing long te￿n and lrfe 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 volunteer5. PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Our values underpin everything that we do: Care.. We ensure a professional standard of high quality care provision delivered with kindness, dignity andrespect. Compassion.. We ensure that a compassionate and a non-judgemental approach remains central to the delivery of our services. Support: We ensure thal people are listened to. their contribution valued and that ne￿$Sary support is provided according to each individual need. Our overall aims: Proud to Be Pendleside Our people identify Pendleside as a good place to worklvolunteer and we are the health care organisation of choice to worklvolunteer for. Community collaboration 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 regulalory requirements and manages risk effeclively. Sustainablity Services are sustainable in the changing extemal environmenL 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 lo cover the anticipated increase in operating costs of the charity and (bl build sufficient reserves as to cover future growth and capital investment. In addilion, 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 Sour￿ of income in maintaining our services, funding however decreasing to approximately 22% of the Hospice operating costs due to a freeze in our NHS grant. The contribution significanlly lower than the, than the 30°/o average contribution, provided nationally to Hospices across the UK. It was disappointing to receive no increase in our NHS grant funding despite the significant increase in inflationary costs experienced in both our general running costs and wage costs as a result of the impact of high inflation both nationally and globally and Ihe living wage increase and increases in public and private sector pay, for Pendleside lo slay legal and competitive in the job market locally,. whilst at the same time the demand on our services continuing to grow and the Hospice continuing to provide significant support to the health and social care syslem locally. PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Income from Pendleside's hard working supporters. remained ex￿lIent 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. Our traditional events. which includes the Pendle Pub Walk and Light up a Life celebrations, did particularfy well, with great support whilst, at the same time. raising a substantial amounl of funding. We also successfully held several new Fundraising events in celebration of our 35th anniversary including Memories on the Lake, which replaced our previous Sunflower event, Pendleside Does Slriclly, The Great Pendleside Trek and Pumpkin Trail all of which were very well received and supported by our community and raised significant funds to support the work of the Hospice. It was also very positive to work, once again, with local businesses in the local area, and lo bring back our Corporate Challenge event, which had to be put on hold due to the Covid pandemic. Businesses in the Burnley and Pendle areas together raised over £167,926.74 to support the work of the Hospice. Our retsil operation was this year moved into our new trading account as part of our risk strategy. Following a challenging few years for our reiail operation. a positive action plan and a new campaign for our 35th anniversary "Rewear Revolulion" (the campaign aiming to raise awareness of the benefits of shopping for preloved items and, in doing so. raising vital funds for patient care at Pendleside it was encouraging to see the shops doing well and once again raising the highest level of retail income in the history of the Hospi￿. We continued to build on links with other I￿al retailers. who continued lo donate new gcK)ds for selling in our shops. In addition. the Hospice eBay shop once again did well raising £77.400 with plans to grow this income further over the forthcoming year. Our meals on wheels service set up in Covid, as a pilot, to supporl people who are frail and housebound whether or not they are known to the Hospice, has now been fully embedded in our service provision and continues to grow. This is the only SeN1￿ charged for by Pendleside and consequendy as well as delivering a service to local people it makes a small contribution to funding patient care. Lottery income was reduced for the third year running. down significantly by 6 %. however wilh expenditure less than in previous years overall the surplus was down by only 5Yo. This is thought to be due to the increase in competition with other Charity lotteries operating in the area but also the impact of the cost of living crisis. With lottery income being an important income stream as it provides regular income lo Ihe Hospice, plans are in place for the forthcoming year to revitalise the lottery with a new campaign and to commence lottery canvassing again. Along with all of the above, and more crucially than ever as the Hospice sees its NHS funding remaining static, our community support remains ex￿lIent wth many individuals. groups and businesses across Burnley and Pendle undertaking their own fundraising initiatives to raise money. The importance of this area of income for the Hospice cannol be underststed nor undervalued. As always, Ihe Board wishes to express its full appreciation for this outstanding level of public support, withoul which the Charity would not be able to continue its operations. The objectives for 2024125 are to continue to maintain all existing Hospice servI￿s. whilst developing and enhancing them, wherever possible, within financial and other resource constraints. PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 All service developments and enhancements during the year were driven by the Chartty's understanding of ils community and service users, needs, along with national and local guidan￿ and, where appropriate, these were implemented in partnership with the statutory servi￿$ and other independent organisations. Our "Pendleside Togetherf group of Servi￿ users, patients and stakeholders continues to be hugely influential in analysing service effectiveness. recognising and helping to deliver service improvements and assisting in the overall development of seNices. 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 400 volunteers working across all Hospi￿ servI￿s, 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). This is slightly less Ihan last year as we struggle lo recruit new volunteers into roles that become vacant. particulady within our retail operation. Nevertheless our Hospi￿ retail operation has nearfy 200 volunteers working across all our shops. 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 Ihe Hospice. Our 'volunteer representative group. set up last year. wntinues to grow and embed with representative from all departments across the Hospice. ensuring that all our volunteers feel able to influence the role of volunteering across all areas of Ihe Hospice. It is important to mention that the financial statements exclude the value of voluntary help, as this is extremely difficult to quantify. Public Benefit Statemenl The Trustees confirm that they have referred to the guidan￿ contained in the Charity Commission's general guidance on public benefit when setting the Charitys 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 highesl quality, for the people of Bumley and Pendle with advancing, long tem and life limiling illnesses and lo do so in partnership with statutory ServI￿S and other independent organisations. Its aim is lo 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 sevenleen years and over. Inpatient care is also provided for patients from the Rossendale area. PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and perfonnance Summary of main achievements As already detailed, in 2023124, our main achievements have been the continuation and maintenance of our existing service provision whilst conlinuing lo 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 non- cancer diagnosis and those with multiple comorbidities. along with their families and carers. This has meant responding lo people with more complex needs and ensuring Ihat we provide responsive, safe and effeclive care. Whilst there were many achievements throughout the year. a particular success was overall across the organisation re￿Iving an oulstanding rating from the Care Quality Commission. In addition there are have been several achievements within each of our clinical services, including- _ Inpalienls introducing an electronic prescribing system which supports the safe prescribing, administration, ordering and monitoring of medicines. The continued development of the hospi￿ at home night sitting service and single point of access for fast track care The continued development of ServI￿S for people with dementia. including appointing a specialist Admiral Nurse, funded by the Hospice wort(ing in collaboration with the charity, Dementia UK. Developing ServI￿S for people underrepresented in our community using a compassionate community approach. Induding.. Continuation of work with a homeless Charity to support socially vulnerable or homeless people who had palliative and end of life care needs Promotion of services to people from minority ethnic groups. ensuring that the services we provide are fit for purpose Promotion of services to people with frailty. again ensuring that the services we provide meet the needs who are frail and approaching the end of their life. The above work meaning that we are now caring for some of the most vulnerable people living within our local community, their families and carers. Our Health, Wellbeing and Rehabilitalion service (formerly known as Day Services), continuing to grow from strength to strength, by caring for more patients than the previous year, increasing its support to carers through introduction of various carers groups and the development peer support groups for people who don't necessarily need the support of the Hospice but benefit from meeting people in a similar situation as themselves. facilitated by the Hospi￿. Feedback from service users during the year was oveNthelmingly positive. with all who responded to our service user suNey stating they would recommend Pendleside seN1￿$ to others in similar circumstsn￿s Likewise, our staff survey was also very positive. Of those who responded:_ 98 % stated they enjoy Ihe work they do 970/0 felt they could make a difference 97 /0 believed in the aims of the Charity 960/0 are proud to work for Pendleside We were also delighted to be awarded two national awards from Hospice UK conference. for Team of the Year and Inclusivily Champion as well as being shortlisled in the prestigious Lancashire Red Rose Business Awards in the employer of the year and the health and wellbeing categories. PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Overall 2286 (1,744 the previous year) Servi￿ user's accessed ServI￿S and had a contact, either by telephone. face to face appointment or were an inpatient. The number reported appear significantly higher than the previous year and whilst we recognise that we have increased the care provided we have also upgraded how we capture information. The breakdown of this us as follows'.- 1,472 {1,079 previous yearl patients 6891589 previous yearl family memberslcarers pre and post bereavement 125176 previous year) children re￿iVed bereavement support This was a similar number to the previous year but. as menb.oned earfier. the number of contacts per service user increased significanuy. The breakdown of service delivery is detailed below.. Inpatient services cared for 149 patients. slightly less than the previous year. This appears to be due to the average length of stay for patients being higher Ihan average and also due lo changes in medical provision, ￿0 of our long term doctors retiring and their being a period where new doctors were recruited and inducted, meaning that we did not have the medical capability we had the previous year whilst we went throLJgh this prO￿S$. Bed occupancy was 86Vo the same as last year. Similarly 73°A of patients received end of life care and 27°A were discharged home or to a care home. 444 service users attended the Health Wellbeing and Rehabilitation Service, with a total of 7,000 face lo face contacts, compared to 6,363 contacts the previous year. The number of patients on the outpatient caseload increased to 742 patients. A total of 1,245 contacts were made similar to the previous year. 714 patients accessed community services, slighuy higher than the previous year, wtth a totsl of 9,356 contscts a significant increase 0814n the 7,824 the previous year. 814 carers, 689 adult carers and 125 children, accessed pre and post bereavement setvices. 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 lrfe limiting illness. their families and carer5. PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Financial review In the financial year ended 31st March 2024. the Charity generated a surplus of £450,888, which was a marginal improvement on the surplus of £445,061 during 2022123. Tolal funds al the year-end came to £13,693,030. More detailed on the income, expendilure and the financial position is shown. on pages 16 to 18 of the financial slatements. With Covid no longer a serious threat or hindrance, we were able to run, for a second consecutive year, with a full program of fundraising aclivilies. However. there were many challenges still lo overcome. as the effects of the 'cost of living crisis, and high levels of inflation continued to have an effect on both inwme levels and operational expendilure. In 2022123, the Hospice re￿iVed a record level of bequests made in supporters. wills, which made a huge difference to the financial outcome for the year. In the year ended 31 st March 2024 this was not repealed being around 60 /0 down on the previous year. The tumaround for the year came in the enhanced values of the Charity's listed investments. Our trading subsidiary company. Pendleside Trading Ltd. which commenced operating in April 2021. now reports on our community Meals on Wheels seNice and the charity retail side of our operations. Income from general fLJndraising - supporter donations and activities plus various events - achieved record levels of approximately £1.165m. Similarly. our Charity retail operations hit a new record of over £897.000. This is a very encouraging performance and suggests that further investment in retail activitses should be a focus for Pendleside. Whilst 'gifts in wills, income was at just over £1.5m in 2022123. the latest year was just short of £640,000. This further highlights the unpredictability of this fomi of income and, whilsl strategies are in formation to grow this in the future, the timing of incoming funds from this Sour￿ will always be out of our control. The NHS continues to provide support to the Hospi￿ through an annual grant. However. there have been no increases of any substance to the sum received meaning that inflation has further eroded its effect on the Charily's annual expenditure. A service level agreement, for a 'fast track. night sit servi￿, has lifted our NHS-based income but this comes with a large level of cost meaning that there are no surplus funds generated for this area of activity- With interest rates remaining. relatively high during 2023124. we have been able to generate acceptable levels of return from our cash reseNes due to the availability of deposit temis around Ihe 5.10 mark. Whilst dividends from our listed investment portfolios remain very modest the recovery of global markets led to the lotal valuations of Ihe two managed funds held by Pendleside to appreciate by around £815,000. prior to management fees, during the financial year. PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 In terms of expenditure, staff pay, food costs and utilities were substantially up on previous years. The increase on our lotal expenditure from 2022123 to 2023124 was just over 13/. With staff cost making up the majority of our operational costs. the need to maintain competitive pay rates adds a significant sum to each year's running costs. With regard to the new financial year that commenced on 1st April 2024. an increase of 0.6¥0 in our annual NHS grant offers little to help the Hospice with the significant cost increases it faces or has already started to incur. A pay award to staff, effective from April, more than wiped out the whole annual increase (below £6,000) on the NHS grant and the annual budget for 2024125 has projeded an operalional deficit of approximately £700,000. This includes very challenging income targets thal means Ihe generosity and support of our community will be crucial to even meeting this target. Without any subsiantial and unexpected income streams. which. in reality, are only likely to come from legacies left lo the Charily, it would seem very unlikely Ihat we can avoid our firsl significant annual deficit. Fortunately. fiscal prudency means that the reserves of the Hospice will be available to use against this short-term deficit. The Pendleside management team and all our staff continually strive to control as much as we possibly can in relation to our oulgoing expenditure However, some overheads are unavoidable and cannot be influenced or reduced by the Hospice. The cost of utilities (electricity, gas and water) are often decided on by national and global factors, as are insurance premiums. Extemal subscriptions and stslutory fees are, largely, unconlrollable. The pressures exerted by the job markets all impact on the costs involved in employing the numbers of staff we need to employ to provide our services. National NHS staff pay agreements will always make it a challenge to be competitive in recruiling and retaining slaff. as will increases lo the National Living Wage rate. As costs increase, our efforts to generate the income needed to maintain a status quo outcome at the end of each year need to be greater and more innovative. PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Investment Policy The Charity may undertake any investment that the Board ofTrustees see fit. This is given in our 'Memorandum and Articles of Association,, and is constanuy reviewed. It is considered that the most appropriate policy for investing the majority of ils funds is a varied porifolio of stocks. shares. unit trusts and deposit accounts. The Charity has also invesled in additional property during the year. In the aulumn of 2023, we secured new shop premises, which included first floor offices. This means that the charity now owns two shops. four flats. one house and the office space. Rental income is received from these properties and one more house, left to the Hospice in a legacy, has, since the turn of the financial year. been added to the asset register with a view to obtaining rental income and asset appreciation. The Finance and Resources subgroup look at our investments each month and consider that the ongoing utilisation of third party investmenl managers, to provide balanced portfolios that aim to produ￿ quarterly income as well as capital growth are wholly appropriate for the Charity. The managers of these funds have delegated responsibility to manage them with an expeclation to maximise retums. These investments are all quoted on the stock exchange and are subject to fluctLJations in the markets. The intention is that their designed and composition wll enable growth over a longer term. Hence, it is crucial thal their perfomiance is judged over a number of years rather than just one single period. Global financial and geopolitical influences do cause significant fluctuations in investment valuations and we must be wary of events such as energy crises, conflicts le.g. Ukraine and Gaza) and threats of Us-led economic recessions having detrimental impacts on the values of our investments. We aim to ensure that the risk profile adopted with our inveslments is appropriate and responsible, at all times. Principal Funding Sources There have been no changes to our primary funding SoUr￿s. These remain as supporter donations and fundraising activities, by individuals. groups and organisations. plus legacy bequests, Charity retail income, fundraising events and activities, a prize lottery scheme, Meals on Wheels service and investmenl income. Alongside this is the annual NHS support grant and other contracted services. The total of our Incoming Resources for the year amounted to £5,102,380. Resenies Pollcy A'summary of Funds, is shown in Note 26 to the accounts. As al 31 st March 2024, our total reserves amounted to £13.805.773 of which £112.743 was held in restricted funds. Our accumulated reserves enable the Charity to plan for the medium temi future with a significant level of confidence and security. The Board of Trustees constantly l(K)k to ensure that the reseNes held are invested in a prudent and wise manner. The intention is to make sure the Hospice is capable of providing ils community with Ihe best possible services. It is recognised that maintaining our vigilance and efforts to financially sustain and. where possible, grow our income is crucial to the future. 11 is our mission to expand and sustain existing services whilst looking to provide new ones that would benefit those in need of them within the Bumley and Pendle boroughs. Our reserves policy is to remain unchanged. As previously. general funds are to be maintained at a level thal will enable the Charity to continue the pmvision of its setvices during a period of unexpected difficulty- This could be, for exarnple, a significant downlurn in our overall income levels. The 2023124 annual accounts show a surplus of £450,888, which is after taking into account investment gains of around £815,000. excluding management fees. The previous year had a surplus of £445,061 but with significant reductions in the values of our investments {over £579,000). It was only a record level of legacy income. at £1.511.272, that prevented the Hospice from recording a deficit for the year. Rising costs. particularly with staff salaries, increased in order to ensure effective recruitment and retention of staff, alongside the unpredictability of several incoffle streaffls, have resulted in a budgeted deficit for the financial year 2024125. 10- PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Within our total reserves figure. as al 31 st March 2024, is a designated fijnd amount of £7.748,912. This is includes £2,748.912 for the book value of our fixed assets. Once again. the Trustees have considered the level of general funds at the end of the financial year and, with a view lo supporting some of the priorities of the Charity, the Board has agreed an increase to the designation of these funds. This aligns our priorities with the overarching organisational strategy and with the Hospice's future development of its services. It W8s in 2018 that the Trnstees made the decision to designate the sum of £2million of its resetves towards seNice lines, staff training and staff development, as well as the potential development of the former Reedley Hall site, which is adjacent lo the current Hospice buildings. Consideration of the challenges arising in the management of budget deficils, alongside expected increases in Ihe demand for our servI￿s. and having to review how we respond to the complex needs of people needing access to the HospI￿'S services contributed lo this decision previously. However, with significant increases in inflation, since this was agreed, plus an ageing building and exploratory works lo upgrade the existing building and develop the Reedley Hall site, it was identified that the amount designated was insufficient to meet what it was intended for. With work undertaken to consider the requirement to upgrade and refurbish the Hospice building over forthcoming years alongside the development of Ihe Reedley Hall sile and a significant increase in salaries since 20218. in order to stay competitive in the job market, it was agreed to designate a further £3million of reserves to support this. As we started the new financial year, in April 2024, after accounting for these restricled and designated funds, the Charity now has the sum of £5.359.021 in our general 'unrestricted' funds. Financial forecasting leads the Trustees lo consider that the magnitude of these funds, after increasing the amount held in designated funds, remains wholly justified and it is felt Ihat the sum will be sufficient to provide the Hospice with financial sustainability of Ihe Hospice for several years, even given a run of subslanlial operational annual deficits. The last few years have shown that there is much fulure uncertainty. The Board fee15 reassured that the financial projections made show that our reserves are sufficient lo maintain our current level of services, in the medium temi. They offer peace of mind to both the Board of Trustees, the Senior Management Team and the entire workforce of Pendleside Hospice. Structure. governance and management The Charity is governed by a Board of Trustees. which takes overall responsibility for all element of its work. They continue to delegate the day to day management of the Hospice and its various activities to a Senior Management team that includes the Chief Executive, Clinical Services Manager, Finance and Business Manager and Head of Income Generation. A Medical Director has been appointed and is due to join the team in the autumn of 2024. 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 the majority of its staff operate from its own purpose built buildings, known as Pendleside Hospice based at Colne Road, Reedley in Bumley. The Executive Committee appoints the Chairperson, from time to time. New Trustees are sought from time lo time, usually to fill a perceived gap in the skill mix of the currenl 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 fvlfil the role of Trustees. All potential Trustees, on application, then receive a rigorous recruitment process and six month probationary period. prior to their appoinlment being confimied. One Trustee slepped down from their role of Trustee and the Similarly, new Trustees are sought from time to time, usually to fill an identified gap in the skill mix of Ihe current Board. This recruitmenl is carried oul by advertising vacancies on the Hospice's website, via social media or in the local press. In addition, a direct approach can be made to people who are deemed lo have the right skills to fulfil the role of Trustees. On application, all polenlial Trustee5 re￿1ve a rigorous recruitment process as well as a six month probationary period, prior to their appointment being confimied. Plans to recruit into vacanl roles exist and are being implemented.Treasurer, Roger Comes, 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. 11 PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The Board of Trustee look to meet every quarter and have delegated authority to four specific subcommittees. These 8re clinical governance, finan￿ and resources. income generation and people li.e. employees and volunteers). These management subgroups all have formal tems of referen￿, and meet regularfy. They report lo the Board at the quarterly executive meeting. Every Trustee takes an active role. alongside the relevant senior and relevant operational managers, in, at least, one of these subcommittees. After their appointment, any new Trustees are required to undergo fijll training on their legal obligations Ljnder Charity and Company law, as well as the content of our Memorandum and Articles of Association. In addition, they are initiated on the committee and decision-making processes. our slrategiG business plan and the recent financial performance of Ihe Charity. They will meet all key managers and employees, plus service users and other Trustees. Finally, new and existing Trustees are encouraged to attend appropriate training events and relevant external meelings, especially where they are considered useful to the facilitation of the underlaking of Iheir role within Pendleside. The Charity had an average of 150 employees working across the organisation during 2023124. These employees equate to 113 whole time equivalent {wtE) employees. In addition to this, we have three staff work under a practising privileges agreement and the Hospi￿ maintains a bank of health care professionals and support staff. A Remuneration Committee, which consists of nominaled Trustees and the Senior Management Team, meels annually to determine the pay and remuneration of all staff. This Committee lakes into account the current and expected rates of inflation plus general salary levels, public and private sector pay scales, the Nalional Living Wage rate. as well as information from other Hospices and similar organisation when setting levels of remuneration. The Board of Trustees are collectively responsible for the wellbeing of the Charity wilhin a framework of prudent and effective controls, which enable risk to be assessed and managed. The Board must also ensLJre that the aims and objectives of the Charity are maintained and the Trustees are required to understand the obligations Pendleside Hospice has to all ils stakeholders. as well as the local cx)mmunity and the 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. Any identified risks are mitigated by the implementation of procedures for the authorisation of all transactions and projects and lo ensure consistent quality of delivery for all operational aspects of the charitable organisation. 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 procedLJres to the operational management of the Charily, including a duty to identify and evaluate risks and reporl failings and any correclive action arising. Risks are reviewed in a number of drfferent ways. All aspects of the Charity's seNice provision are govemed by policies and procedures thal are required to comply with the Health and Social Care Acl 2008 {Regulated Activities) Regulations 2014, under the regulation and inspection of the Care Quality Commission. All of these are reviewed inlemally, at least every three years, though some are annually or even more often, rf there are changes to legislation or best practice guidance. Action is identified to correct or improve practice, thereby mitigating any identified risk. as appropriate, under the direction of the Chanty's Quality Assuran￿ Group. Other risk items may be idenlified for corrective action al the time of a regulatory inspects'on. Of continuing importance is managing the risk caused by of ongoing. though. in recent months. slightly relieved. cost of living pressures, particularly in relation to expenditure and remuneration. Staff costs have continued lo substantially increase in the last two years and the remuneralion committee continue to lake a balanced view of slaff pay and staff recruitmenuretention in order to respond appropriately to these pressures. We continue to be careful in purchasing support services, Lrtility supplies, and other areas of expenditure with a view to mitigating these as much as possible. The Hospice maintains and regulady reviews a dedicated wlicy for the "Reporting and Management of Adverse Events. including serious incidents. Ail such incidents, both clinical and non-clinical, are recorded and reported to an appropriate subcommittee of Trustees. as well as to senior and operational managers. A summary report of all 8dverse incidents is made to the Board every quarter. The operational management of the Charity is responsible for identifying and implemenling corrects've action arising from adverse incidents as appropriate. 12- PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The Charity is proactive in assessing spectfic risks under the le￿S of its risk management policy and PrO￿dure. 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 Ihe Trustees commission the services of extemal auditors. Examples include the audil of the Charity's intemal financial controls, payroll processing and lottery administration. The Hospice is registered with the Fundraising Regulator and an objective of the Charity is lo comply with the voluntary regLJlation 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 slandards; this includes ensuring practi￿$ prolect people and olhers from unreasonable intrusion on a person's privacy and unreasonably persistent approaches or undue pressure lo give in the course of fundraising for the Hospice. No complaints were received regarding fijndraising Practi￿ in the ￿e1ve-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. 13- PENDLESIDE HOSPICE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 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 Truslees, Report and Ihe 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 applicalion of resour￿$, including the income and expenditure. of the charitable company for that year. In preparing these financial slatements. the trustees are required to- select suitable accounting policies and then apply them consistently., obseNe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent- state whether applicable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements. and prepare the financial statements on the going COn￿M basis unless it is inappropriate to presume that the Charity will continue in operation. The trustees are responsible for keeping adequale accounting records that disdose 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 Acl 2006. They are also responsible for safeguarding the assets of Ihe Charily and hence for laking reasonable steps for the prevention and deteclion of fraud and other i￿egUla￿ties. Audilor In accordan￿ wilh the companys articles, a resolution proposing that PM+M SolLrtions for Business LLP be reappointed as auditor of the company will be put at a General Meeting. Disclosure of inforniation to auditor Each of the Iruslees has confirmed that there is no information of which they are aware which is relevanl to the audit, but of which the auditor is unaware. They have further confimied that they have taken appropriate steps to identify such relevant information and to eslablish thal the auditor is aware of such infomation. The Iruslees. report, including the strategic report, was approved by the Board of Trustees. David Brown Trustee Dated.. Helen Binns Trustee 3111012024 Dated.. 3111012024 14- PENDLESIDE HOSPICE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PENDLESIDE HOSPICE Opinion We have audited the financial statements of Pendleside Hospice (the 'Charity') for the year ended 31 March 2023 which corllprise the Consolidaled slatement of financial activities, the Consolidated and Charity balance sheets, Ihe 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 Uniled Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepled Accounting Practice). In our opinion, the financial ststements.. give a true and fair view of the state of the charitable group's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended- have been property prepared in accordance with Uniled Kingdom Generally Accepted Accounting Practice- and have been prepared in accordan￿ with the requirements of the Cornpar)ies Act 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing {UKI {ISAs {UKII and applicable law. Our responsibilities under those standards are further described in the Auditoffs ￿spOnsIbl1111es for the audil of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requiremenls 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 accordan￿ with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing Ihe financial statements, we have concluded Ihal the trustees, Use of the going concem 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 signtfic8nt doubt on the Charity's ability to continLJe as a going concern for a period of at least twelve monlhs from when the financial stalemenls are authorised for issue. Our responsibililies and the responsibilities of the trustees with ￿SpeCt to going concem are described in the relevant sections of this report. Other infomiation The other information comprises the infomation induded in the annual report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover Ihe other information and, except lo the extent otherwise explicitly stated in our report, we do not express any fomi of assuran￿ conclusion thereon. Our responsibility is to read the other infomiation and. in doing so, consider whether the other information is materially inconsislent wilh 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 whelher 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 Ihe work undertaken in the course ofour audit: the information given in the trustees, report for the financial year for which the financial statements are prepared, which includes Ihe directors, report and the strategic report p￿pared for the purposes of company law, is consistent with the financial statements., and the slrategic report and Ihe directors. report induded within the Irustees. report have been prepared in accordance with applicable legal requirements. 15- PENDLESIDE HOSPICE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF PENDLESIDE HOSPICE Matters on which we are required to report by exception In the light of the knowledge and Ljnderstanding of the Charity and its environment obtained in the course of the audil, we have not identtfied material rnisslatements in the strategic report or the director5, report included within the trustees, 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 re￿iVed from branches not visited by us," or the financial statements are not in agreement with the accounting records and retums.. or certain disclosures of trustees, 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 statement of trustees. responsibilities. the trustees. who are also the directors of Ihe Charily for Ihe purpose of company law, are responsible for the preparation of Ihe financial stalemenls and for being satisfied that they give a true and fair view. and for such intemal control as the tnjstees detemiine is necessary to enable the preparation of financial statements that are free from material misstalement, whelher 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 concem, disclosing, as applicable, matters related to going concem 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 altemalive but to do so. Audilor's responsibilities for the audit of the financial statements Our objeclives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordan 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-complian￿ wtlh laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstalemenls in respect of I￿egular1ties, including fraud. The extenl to which our procedures are capable of delecting irregularities, including fraud, is detailed below. We identify and assess the risks of material misststement 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 Ihal is sufficient and appropriate to provide a basis for our opinion. 16- PENDLESIDE HOSPICE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF PENDLESIDE HOSPICE Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstalement in ￿SpeCt of irregularities, including fraud and non- compliance with laws and regulations. we have considered the following= the nature of the industry and sector, control environment and business perf0mlan￿ including the design of the Charity's remuneration policies, key drivers for directors, remuneration, bonus levels and perfomance targets., results of our enquiries of management about their own identification and assessment of the risks of irregularities; any matters we identified having obtained and reviewed the Charitys do(yJmentation of their policies and prO￿dureS relating to- idenlifying, evaluating and complying wth laws and regulations and whether they were aware of any instan￿S of non-compliance- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud- Ihe intemal conlrols established to mitigate risks of fraud or non-compliance with laws and regulations., the matters discussed among the audit engagement team including significant component audit leams and involving relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicalors of fraud. As a result of these procedures. we considered the opportunities and incentives that may exist within the organisation for fraud and identified the grealest polenlial for fraud in Ihe following areas". timing of recognition of commercial incorne, posting of unusual joumals and complex transactions., and manipulaling the Charity's perfomiance profit measures and other key perfomiance indicators to meet remuneration targets and externally communicaled targets. In common wth all audits under ISAS {UK). we are also required lo perfonn 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 delemiination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this conlext included UK Companies Act. Charities Act, employment law. health and safety regulalions. pensions legislation and lax legislation. 17- PENDLESIDE HOSPICE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF PENDLESIDE HOSPICE Audil response to risks identified Our procedures to respond to risks identified included the following= reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on Ihe financial statements., enquiring of management conceming actual and potential litigation and claims., perfoming analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud., reading minutes of meetings of those charged with govemance and ￿VIewIng correspondence with HMRC; and in addressing the identified risks of fraud through management override of controls, testing the approprialeness of joumal entries and other adjustments- assessing whether Ihe judgements made in making accounting estimates are indicative of a potents.al bias,. and evaluating the business rationale of any significanl transactions that are unusual or outside the nomial course of business. 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 slatements. even though we have propedy planned and performed our audit in accordance with auditing standards. For example. the further removed non-compliance with laws and regulations lirregularitiesl is from the events and transactions reflected in the financial statemenls, 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 ove￿Ide of intemal controls. We are not responsible for preventing non-compliance and cannot be expected to delect non-complian￿ wilh all laws and regulations. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https'.11 www.frc.org.ukJauditorsresponsibilities. This description fomis part of our auditorfs report. Use of our report This ￿port is made solely to the charitable company's members. as a body, in accordan￿ with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state lo the charitable company's members those matters we are required to stste lo them in an audilorfs 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 Ihe charitable company s members as a body, for our audit work, for this report, or for Ihe opinions we have fomied. Ceri Dixon Bsc (Hons) FCA (Senior Statutory Auditor for and on behalf of PM+M Solutions for Business LLP Chartered Accountants Statutory Auditor New Century House G￿enbank Technology Park Challenge Way Blackbum Lancashire BB15QB 0411112024 18- PENDLESIDE HOSPICE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestrided Restricted funds funds 2024 2024 Totsl Unrestricted Restricted funds funds 2023 2023 Totsl 2024 2023 Notes Income and endowments from: Donations and legacies Charitable activities Other trading activities Investments Turnover of trading subsidiary 1.608.749 1,140,086 959.478 439,243 1.608.749 17.996 1,158.082 959.478 439.243 2.520,829 1,134,510 1.602,707 276,206 2,520,829 51,488 1,185,998 1,602.707 276,206 936.828 936.828 104,894 104,894 Tolal income 5.084.384 17.996 5.102.380 5,639,146 51,488 5,690,634 Ex nditure on: Raising funds Trading cost of subsidiary 10 519,193 519,193 930,138 930.138 634.411 634,411 89.214 89.214 Charitsble activities 11 4,127,899 20,119 4,148,018 3,611,432 35,371 3,646,803 Total expenditure 5,281,503 20.119 5,301,622 4,630,784 35,371 4,666,155 Net gainslllosses) on investments 650,130 650,130 (579.418) (579.418) Net incomingl(outgoing) resources before transfers 453.011 (2.123) 450.888 428,944 16,117 445,061 Net movement in funds 453,011 (2,123) 450,888 428,944 16.117 445.061 Fund balances at 1 April 2023 13,240,019 114,866 13,354,885 12,811.075 98,749 12,909.824 Fund balances at 31 March 2024 13,693,030 112,743 13,805,773 13,240,019 114,866 13,354,885 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 CompaniesAcl 2006. 19- PENDLESIDE HOSPICE GROUP BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets Investments 18 19 2.748,912 11,081,745 2,412,363 10,631.991 13,830,657 13,044.354 Current assets Stocks Debtors Cash at bank and in hand 20 21 2,500 221.258 252,433 2,500 438,985 258,878 476,191 700,363 Creditors: amounls falling due within one year 22 (501,075) 1389,8321 Net current {liabilitiesyassets (24,884) 310,531 Tolal assets less current liabilities 13,805.T13 13,354.885 Income funds Restricted funds Unrestricted funds Designated funds General unrestricted funds Revaluation reseNe 24 112,743 114,866 7,748,912 5.359.021 585,097 4,412,363 8.242,559 585,097 13,693.030 13,240,019 13,805.T13 13,354,885 3111012024 The financial statements were approved by the Trustees on ......................... David Brown Trustee Helen Binns Trustee Company registration number 02280991 -20- PENDLESIDE HOSPICE CHARITY BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets Investments 18 19 2.748,912 11,081,845 2,412,363 10,632.091 13,830,757 13,044.454 Current assets Stocks Debtors Cash at bank and in hand 20 21 2,500 221.629 245,387 2,500 440,992 254,371 469,516 697,863 Creditors: amounls falling due within one year 22 (494,500) 1387,4321 Net current {liabilitiesyassets (24,984) 310,431 Tolal assets less current liabilities 13,805.T13 13,354.885 Income funds Restricted funds Unrestricted funds Designated funds General unrestricted funds Revaluation reseNe 24 112,743 114,866 7,748,912 5.359.022 585,097 4,412,363 8.242,559 585,097 13,693.030 13,240,019 13,805.T13 13,354,885 3111012024 The financial statements were approved by the Trustees on ......................... David Brown Trustee Helen Binns Trustee Company registration number 02280991 The consolidated accounts of the Group include the financial statements of the charity and its subsidiary undertaking for the year ended 31 March 2024. A separate Statemenl of Financial Activilies for the charity has not been presented because the subsidiary has taken advantage of exemption by section 408 of the Companies Act 2006. The surplus of the charity for the year ended 31 March 2024 was £450,88812023.' £445,061). 21 PENDLESIDE HOSPICE GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activities Cash (absorbed byllgenerated from operations 32 (178,987) 1,125.692 Investing activities Purchase of tangible fixed assets Purchase of investments Proceeds from disposal of investments Investment income received (459.162) 12,028,242} 2.220.703 439,243 (97,1881 {3.443,7401 2,179,669 276,206 Net cash generated fromllused in) investing activities 172.542 11,085,053) Net cash used In financing actlvltles Net (decrease)Ilncrease In cash and cash equivalents (6,445) 40.639 Cash and cash equivalenls al beginning of year 258,878 218,239 Cash and cash equivalents at end of year 252,433 258.878 -22- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity inforniation Pendleside Hospice is a private company limited by guarantee incorporated in England and Wales. The regislered Offi￿ is Pendleside Hospice, Colne Road, Reedley, Bumley, 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 Ihe UK and Republic of Ireland IFRS 1021" (effective 1 January 20191. The Charily 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 Ihe revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Going concern Al the lime of approving the financial statements, the tnjstees have a reasonable expectation that the Charity has adequate resources to continue in operats.onal existence for the foreseeable future. Thus the trustees continue to adopt Ihe going concem 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 2024. 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 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtheran￿ of their charitable objectives. Designaled 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 or granlors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes lo the financial statements. 1.5 Incoming resources Income is recognised when the Charity is legally entided to it after any performan￿ conditions have been met. the arnounts can be measured reliably. and it is probable that incoffle will be received. Cash donations are recognised on receipl. Other donations are recognised once the Charity has been notified of the donation, unless performance (x)ndilions 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. -23- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 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 re￿ipl is expected. If the amount is not known. the legacy is trealed as a contingent asset. Income is measured at the fair value of Ihe consideration received or receivable and represents amounts receivable for goods and services provided in the nomial course of business. net of discounts, VAT and other sales related taxes. 1.6 Resources expended Expenditure is recognised once there is a legal or conslructive obligation to transfer economic benefit to a third paty. 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 activty. Direct costs attribulable 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 b8SIS 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 Ihe asset's use. Fundraising costs are those incurred in seeking voluntary contributions and do not include the cosls of disseminating information in support of the charitable activities. Govemance costs are those incurred in connection with administration of the company and complian￿5 with constitutional and statutory requirements. Cost of generating funds are costs incurred in attracting voluntary income, and those inCu￿ed in trading aclivities that raise funds. Charitable activities and g0Veman￿ 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. 1.7 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequendy 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 Ihe following bases- Freehold buildings Fixtures and fittings Computers Motor vehicles 2% straight line 20 /0 slraight line 25 % straight line 25 % slraight line Freehold land is not depreciated. The gain or loss arising on the disposal of an assel 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. -24- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) 1.8 Fixed asset investments Fixed asset investments are initially measured at transaction price excluding Iransaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel{expenditure} for the year. Transaction costs a￿ expensed as incurred. A subsidiary is an entity controlled by the Charity. Control is the power to govern the financial and operating policies of the entity so as to oblain benefils from its activities. 1.9 Slocks Stocks are stated al the lower of cost and estimated selling price less cosls 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 distribulion al 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. 1.10 Cash and cash equivalents Cash and cash equivalents indude 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. 1.11 Financial instruments The Charily has elected to apply the provisions of Seclion 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instrumenls. Financial instruments are recognised in the Charity's balan￿ sheet when the Charity becomes paty to the contradual provisions of Ihe instrumenl. Financial assets and liabilities are offset. with the net amounts presented in the financial statements. when there is a legally enforceable righl 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 al amortised cost using the effective interest method unless the arrangement constitutes a financing transaction. where the transaction is measured at the presenl value of the fuiure re￿iptS dis(x)unted 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 credilors are obligations lo pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are dassified 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 Charitys contractual obligations expire or are discharged or cancelled. -25- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) 1.12 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's ServI￿S are received. 1.13 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.14 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. 1.15 Deferred Incoming resources Lottery income is deferred on the basis of the perio(1 to which subscriptions relate. Criti¢al a¢¢ounting estimates and judgements In the application of the Charity's accounting policies. the trustees are required to make judgements, estimates and assumptions about the carying amount of assets and liabililies 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 underfying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where Ihe 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 malerial adjustment to the carying amounts of assets and liabilities within the next financial year. are in relation to the valuation of fixed assets and investments. Group donations and legacies Unrestricted Restricted funds funds Total 2024 Total 2023 Donations Legacies receivable Other 954.445 639,304 15.000 954.445 1,009,557 639,304 1,511.272 15.000 1.608.749 1.608.749 2,520,829 For the year ended 31 March 2023 2.520.829 2,520.829 -26- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Group charitable activities 2024 2023 Operation of Hospice 1,158,082 1,185,998 Anal sis b fund Unrestricted funds Restricted funds 1,140.086 17.996 1,134.510 51,488 1.158.082 1,185,998 Other trading activities Unrestricted Restricted funds funds Tolal 2024 Total 2023 Fundraising events Other income- Shop Sales and GiftAid Hospice lottery Other fundraising activities 473,397 80.010 377,527 28.544 473,397 80.010 377,527 28.544 359,378 820.977 400,628 21.724 Fundraising income 959.478 959.478 1,602.707 For the year ended 31 March 2023 1.602.707 1,602.707 Investment Income Unrestricted Restricted funds funds Total 2024 Total 2023 Rental income Income from listed investments Interest re￿1vable 45.936 178,110 215.197 45.936 30,210 178,110 156.691 215.197 89.305 439.243 439.243 276.206 For the year ended 31 March 2023 276.206 276.206 -27- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Other income Unreslricled Unreslricled funds funds general general 2024 2023 Turnover ofTrading Subsidiary 936.828 104,894 936.828 104.894 Other material income In the current year the 'Charity Shop sales. have been transferred to Pendleside Trading Limited. the trading subsidiary of Pendleside Hospice. Glft Ald payment by tradlng sub$ldlary The wholly owned trading subsidiary Pendleside Trading Lld is incorporated in Ihe United Kingdom and pays all of its profits to the charity by gift aid. Pendleside Trading Ltd operates Meals on Wheels in the comrllunity. The charity owns the entire share capiial. A summary of the trading results for the year ended 31 March 2024 Total 2024 Total 2023 Tumover Operating costs 936,828 (634.411 } 104,804 189,214) Trading profit 302.417 15,590 Gift aid payment to charity 302.417 15,590 Retained in subsidiary Represented by-. Restricted income funds Unrestricted income funds The assets and liabilities of the subsidiary were- Current assets Current liabilities Total nel assets 23.685 (23.585) 100 14.509 114,409) 100 Aggregate share capital and reserves 100 100 -28- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 10 Raising funds Unrestricted Restricted funds funds Total 2024 Total 2023 Fundraising and publicity Christmas cards and merchandising products Publicity and brochures Events expenditure Bank charges Telephone costs Insuran￿ costs Voluntary income staff costs 12,482 33.900 110,471 11.841 6,382 15.446 186,923 12,482 33.900 110,471 11.841 6,382 15,446 186,923 11.613 60,050 85.347 18.873 4,413 11.941 145,924 Costs of raising funds 377,445 377,445 338,161 Trading costs Prize money and commission General expenses Light. heal and water costs Repairs and maintenance Incidental expenses Operating lease rentals Motor and travel costs Staff costs Deprecialion and impaimient 73.362 14,591 73,362 14,591 72,900 25.705 29.240 10.035 30.830 108,054 5.862 296,532 12.819 8,970 8,970 29,172 15,653 29,172 15,653 Fundraising trading costs 141.748 141,748 591.977 519.193 519,193 930.138 For the year ended 31 March 2023 Cost of raising funds Fundraising trading costs 338.161 591,977 338.161 591,977 930,138 930,138 -29- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 11 Group charitable activities 2024 2023 Staff costs Depreciation and impaimient ProfiVLoss on sale of fixed assets Water Gas and electricity Repairs and maintenance Recruitment Travel expenses Training Healthcare Unifomis Telephone costs Insurance Medical supplies and bought in servi Cleaning costs Office costs, slationery, postage and IT Registration fees and subs Incidental expenses Irrecoverable VAT Catering cosls Patient transport costs Bank charges 3,382,397 100.458 (17,500) 12.460 79,604 130.640 1,976 38.294 24,052 26.584 7,559 6.383 15,447 119.243 19.287 52.408 18.315 1.577 6.706 66,756 11,567 6,262 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 42.842 20,794 1.577 114,980) 64.036 16,622 7.984 4,119.834 3,623.881 Share of governance costs {see note 13) 28.184 22.922 4,148.018 3,646.803 Analysis by fund Unrestricted funds Restricted funds 4.127.899 20,119 3,611,432 35.371 4,148,018 3,646.803 12 Trade of subsidiary In the year to 31 March 2024 the operating costs of the trading subsidiary amounting to £634,411 (2023: £89,214) comprised wholly of unreslricled expenditure. -30- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 13 Support Costs Support Govemance costs costs 2024 2023 Audit fees Accountancy Legal and professional 8.000 4,000 16.184 8.000 4,000 16.184 8.000 5,150 9.772 28.184 28.184 22.922 Analysed belween Charitable activities 28,184 28,184 22,922 14 Net movement in funds 2024 2023 Net movement in funds is stated after chargingllcrediting) Fees payable to the companYs auditor for the audit of the company's financial statements Fees payable to the compan￿$ auditor for other services provided Depreciation of owned tangible fixed assets 8.000 4.000 122.613 8.000 5,150 102.577 15 Trustees None of the trustees {or any persons connected wtlh 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 £407 {2023.' £106). 31 PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 16 Employees The average monthly number of employees during the year was: Group 2024 Number Group 2023 Number Charity 2024 Number Charity 2023 Number Nursing slaff - inpatient Nursing staff - day therapy Nursing slaff - hospice at home Nursing staff - spiritual care and medical officers Administration staff and general managers Anulliary 25 22 25 22 27 25 27 25 33 13 32 13 30 12 12 Total 113 107 112 105 Group 2024 Charity 2024 Employrnent costs 2023 2023 Wages and salaries Social security costs Other pension costs 3,081,942 273.168 225,387 2,900,533 288,103 189,699 3,081,942 273,168 225,387 2,900,533 288,103 189,699 3,580,497 3,378,335 3,580,497 3,378,335 The key management personnel of the group comprise those of the Hospi￿ and the key management personnel of its wholly owned subsidiary Pendleside Trading Limited.The total remuneration earned by key management personnel during the year was £251.69012023'. £239.567). The number of employees whose annual remuneration was more than £60,000 is as follows.. 2024 Number 2023 Number £60,001- £70,000 £70,001- £80,000 17 Taxation The charity is exempt from tax on income and gains falling within seclion 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent thal these are applied to its charitable objects. -32- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 18 Tangible fixed assets Group and Charity Freehold Fixtures and buildings fittings Computers Motor vehicles Total Cost At 1 April 2023 Additions 3.121,040 350.000 504,262 26.773 122,545 30.297 155,117 52.092 3,902,964 459.162 At 31 March 2024 3,471.040 530.397 152.842 137,802 4,292,081 Depreciation and Impaimlent Al 1 April 2023 Depreciation charged in the year Other changes 810.480 60,024 445.628 26,574 97.550 20,362 136.943 15,653 1.490.601 122,613 At 31 March 2024 870.504 471.564 117.912 83.189 1,543,169 Carrying amount At 31 March 2024 2,600.536 58.833 34.930 54.613 2,748,912 At 31 March 2023 2,310,560 58,634 24,995 18,174 2,412,363 Land and buildings with a carrying amount of £1.034.903 were revalued at 31 August 2018 by independent valuers nol connecled wilh the Charity on the basis of market value. The valuation conforms lo International Valuation Standards and was based on recent market transactions on arm's length temis for similar properties. At 31 March 2024, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses. Iheir carrying amounl would have been approximately £866,453 12023 £893,251). Included in land and buildings is freehold land at valuation of £664.476 {2023 - £664,476) which is not depreciated. -33- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 19 Fixed assel investments Group Listed Unlisted investments investments Total Cost or valuation At 1 April 2023 Additions Valuation changes Disposals 6,768,859 3,863,132 10,631,991 1.977.293 50.949 2,028.242 642,415 642,415 (1.804.797) (416.105) (2,220,902) At 31 March 2024 7.583.770 3.497.976 11.081.746 Carrying amount At 31 March 2024 7,583,770 3,497,976 11,081,746 At 31 March 2023 6,768,859 3,863,132 10,631,991 Charity 2024 2023 Oiher Unlisted Investments: Marsden Building Society Close Brothers Handelsbanken 1,019,764 624.013 1,854,199 1,000,014 592.814 2,270,304 3,497,976 3,863,132 Group 2024 Group 2023 Charity 2024 Charity 2023 Other inveslments comprise" Investrnents in subsidiaries 100 100 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 and charity shop sales. 20 Stocks Group 2024 Group 2023 Charity Charity 2024 2023 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 2024 21 Debtors Group 2024 Group 2023 Charity 2024 Charity 2023 Amounts falling due within one year: Trade debtors Amount owed by parent undertaknng Other debtors Prepayments and accrued income 31.532 100,121 17.117 17,010 115.818 71,684 91.424 12,009 263.727 73,832 115.818 73,908 263,727 75,137 221,258 438,985 221.629 440,992 22 Creditors: amounls falling due within one year Group 2024 Group 2023 Charity 2024 Charity 2023 Trade creditors Other creditors Accruals and deferred income 62.698 218,445 219.932 88.430 124,649 176.753 62.698 215,470 216.332 88.430 124,649 174.353 501.075 389.832 494.500 387.432 Deferred Income Deferred income al 1 April 2023 Movement in the year Group 69.061 31,469 Charity 69.061 31,469 Deferred income al 31 March 2024 100,530 100,530 The defe￿ed income balance of £100.530 (2023.. £69.061) as at 31 March 2024, includes £71,074 (2023- £68,231) which relates to the lottery fund and £29.456 (2023= £830) which relates to customer sponsorshiplevents. 23 Retirement benefit schemes Defined Contribution schemes The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those oflhe Charity in an independently administered fvnd. The charge to profit or loss in respect of defined contribution schemes was £225,38712023: £189,699). -35- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Restricted funds Group and Charity The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. Movement in funds Incomlng Resourcès Balance at resources èxpendgd 1 April 2023 Movement in funds Incomlng Resources Balance at resourees expended 31 March 2024 Balance at 1 April 2022 98.749 51.488 (35.371) 114.866 17.996 (20.1191 112.743 25 Analysis of net assets between funds Group and Charity Unrestricted Designated funds funds Reslricled funds Total Fund balances at 31 March 2024 are represented by: Tangible assets Investments Cu￿ent assetsllliabilities) 2.656.170 3.332.833 (44.984) 2,748,912 5.000.000 92.742 5,497,824 8.332,833 124,884) 20.000 5,944,019 7,748,912 112.742 13,805,773 Unrestricted Designated funds funds Restricted funds Total Fund balances at 31 March 2023 are represented by= Tangible assets Investments Current 8ssetsllliabilitiesl 2,317,497 6.219,628 290,531 2,212,363 2.000.000 94,866 4,624,726 8,219.628 310,531 20,000 8,827,656 4,212,363 114,866 13,154,885 -36- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 26 Summary of Group Funds Group and Charity Movement in funds Resources Transfers expended Balance at 1 April 2023 Incoming resources Gains and Balance at losses 31 March 2021 Designated funds General funds 4,412,363 8.827.656 5.084.384 3,336,549 (5.281.503) {3.336.549) 7,748,912 650.130 5.944.118 Total unreslricted funds 13,240,019 5,084,384 (5,281,503) 650,130 13,693,030 Restricted funds 114,866 17,996 (20,119) 112,743 13,354,885 5,102,380 (5,301,622) 650,130 13,805,773 At the year end, the restricted funds carried fO￿ard ￿present £20,00012023 - £20,000) relaling to the Frank Houghton fund. The remaining funds reflect the net book value of fixed assets funded by grants. Trustees have considered fvlure challenges of managing a budget deficil, coping wilh the potential increase in demand for services and complexity of need of people accessing Hospice services, training and development needs of staff and developmenl of the Reedley Hall sile and has designated £5million of its reserves, plus the value of the CharIt￿S fixed assets towards service lines, training and development of staff and development of the Reedley Hall Site. 27 Contlngent Assets At the year end, the Charity was aware of a number of legacy donations which had been made to the Charity- However Ihe residual legacy donation in each case cannot be measured reliably leading lo Un￿rtaInty 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.. Group 2024 Group 2023 Charity 2024 Charity 2023 Within one year Between two and five years In over five years 57,329 171.333 60,250 57,799 180,500 102,250 57,329 171.333 60,250 57,799 180,500 102,250 288,912 340,549 288,912 340,549 -37- PENDLESIDE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 29 Related party transactions During 2022123. Pendleside Hospice entered into a collaboration wilh 8 other hospices located in the Lancashire and South Cumbria region. Pendleside Hospice was nominated to hold the funds used to finance the aclivilies of the collaborative and to pay the salaries of any staff diredy employed for this initialive. The balance relating to the collaboration. which was included in the creditors figure at the year*nd. was £85.887 12023.. £115,000). 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 material debt during the year. 32 Cash generated from operations 2024 2023 Surplus for the year 450,888 445,061 Adjustments for.. Investment income recognised in statement of financial activities Fair value gains and losses on investments Depreciation and impairment of tsngible fixed assets (439,2431 (642,215) 122.613 {276,206) 726,888 102,577 Movements in working capital: Decrease in debtors Increase in creditors 217,727 111,243 77.907 49,465 Cash {ab$orbed by)Igenerated from operations (178,987) 1,125,692 -38-