South•m Arna Ho$plc• Servlcgs Ltd Company Llmlted by Guarantee Annual Report & Flnanclal Statements Year Ended 31 March 2023 Company No: N1038737 Charity No: NIC101906 HMRC Charlty Number: XN4732912 Southern Area Hospice Service6 Ltd Company Llmlted by Guarantea Table of Contents Year Ended 31 March 2023 Pag• Company Infom)atlon R8POrt of the Trustees 4-16 Independent Audltors Report to tha members 17-19 Statement of Financial Activlties 20 Balance Sheet 21-22 Cash flow statement 23 Note8 to th8 Financlal Statements 2441 Southern Area Hosplce Servlces Ltd Company Limited by Guarantee Company Informatlon Trustees Patrick Loughran (Chairman) Donna Houston (Vice Chair) Robin Brown Sheila Chambers Greg Cox Martin Dillon (appointed March 2023) Monlca Duffy Michelle Hutchinson Wllli8 McAllister Oda McPolin Kelly Mcveigh Katrina O'Dowd Clayre Scott (reslgned May 2022) Roger Wilson CowOPtee8 to Commlttaes John Harty- Cllnlcal Govemance Commlttee and Medlcal Advlsory Group David Gilpln- Clinical Governance Committee and Medical Advlsory Group Andrew Stevenson - Capital Developm8nt and Infrastructure Committee Secrntary Llz Cuddy Registered Offlce St John's House Courtenay Hlll Newry Co. Down BT34 3EB External Audltor FPM Accountants Ltd Chartered Accountants 1-3 Arthur Street Belfast BT14GA Intsrnal Audltor CavanaghKelly 36-38 Northland Row Dungannon 8T716AP Prlnclpal Bankers AIB 42-44 Hill Street Newry Co. Down Southern Area Hospice Services Ltd Company Limited by Guarantee Company Infomiation Princlpal Bankors ctd... Danske Bank Limited 58 Hill street Newry Co. Down AIB 96 Clanbrassil Street Dundalk Co. Louth Investment Advl88r8 Brewn Dolphin 11th Floor East Tower Lanyon Plaza 8 Lanyon Place B8lfast, 8T13LP Sollcltors Luke Curran & Co 6 Marcus Square Newry Co. Down Lewis Silkin (N.I.) LLP 8th Floor Th8 Linenhall 32-38 Linenhall Street Belfast BT2 8BG Reglstered Charlty No. Registered Company No. NIC1019061XN4732912 N1038737 Senlor L8ad•rshlp Team: Liz Cuddy Damien Hillen Sandra Mahood Bridget sM￿h Chlef Executlve Offlcer Director of Development Director of Corporate Services DlreGtor of Care Southern Area Hospice Services Ltd Report of the Trustees Year Ended 31 March 2023 The Twslees (who are also Directors of the company) submit their annual report and the audited consolidated financial statements of Southern Area Hospice Services Ltd and its subsldlaries forthe year ended 31 March 2023. This report constitutes the Strategic Report and the Directors, Report required under the Companies Act 2006. The Trustees have adopted the provisions of thè Companies Act 2006, thé Charities Act {Northern Ireland) 2008, the Charities Act (Northem Ireland) 2022 and Accounting and Reporting by Charities: Statement of R8commended Practice applicable to charities preparing th8ir financial stateménts in accordance with the Financial Reporting Standard applicable in thé UK and Republic of Ireland (FRS 102) effective 1 January 2019)- (Charities SORP (FRS 10211, in preparing the annual report and financial statements of the group and charitable company. Reference and administrative Informatlon Southem Area Hospice Services Ltd has been established as a voluntary Independenl hosplce since 1989. It was incorporated in June 2000. Southem Area Hospice Servlces Ltd is registered with the Charity Commission Nl (Charity Number NIC101906). is a company Ilrnited by guarantee and is registered with the Companies Registrar (Company nurnber N1038737). It is also recognised as a charSty by HM Revenue and Custr)ms, XN 4732912. The Trustees and S8cretary of the charity are listed on page 2. The principal and reglstered office of the charity15 also Ilsted on page 2 together wlth details of th8 professlonal advisers and bankers. structurei governance and management Southem Area Hospice Services Ltd, by virtLte of common Trustees and power to govern op8rations. controls the activities of ￿ other companies, Southern Area Hospice Services Shop Limited and Southern Area Hospic8 Services Lottery Limited, both of which have the objective of raising funds for the Southern Area Hospice Services Lid. Southern Area Hospice SeNices Lottery Limited operates a weekly lottery to generate funds for the Hospice. Southem Area Hospice Services Shop Limited operates as a general merchandise shop. As reported last year, the trading levels and profits generated by the 3 shop5 were seriously detrimentally impacted durlng the Covid-19 pandemic. The company has ceased trading in the reporting period. There is further detsil later in the report regardlng this. Southern Area Hospice se￿ICes Ltd Is gov8med by a Board of Dlrectors (￿0 ar8 also known as Trustees for th8 purposes of the Charity Law). It is governed by a Memorandum and Articles of Association. Board of Dlrectors - ensuring good governance The 8oard of Directors (Trustees) is as listed on page 2. The Directors are responsibl8 for settlng strategies and policies and for ensuring that these are irnplemented. The Board of Directors meets regularly to comply with It5 statutory responsibilitie5. In the reporting period, th8 Board met 5 tim8S. The Chairperson is accountable to the Board of Directors and responsible for the efficient running of Southern Are8 Hospice Servlces Ltd wth the help of the Chief Executive and the Senior Leadershlp Team. The Directors (Trustees) are not remunerated. The Board Committee structure is well embedded and operating effectively. It Is as Set out below. Th8 Cllnic81 Governance Committée provides oversight and 5CTUtiny of service provision IcliniGal governanc8, service quality, patient safety and GliniGal standards). service performance. service development and clinical leadership. The Committ88 has 5 members- 3 Board members and 2 o>optees and is chaired by Patrick Loughran. It met 4 times in the reporting period. The Board estsblished a Medical Advisory Committee (MACI as a sub-committee ofthe Clinical Govemance Committee. The remit ofthe MAC is to advise and review the granting of practising privileges for mediGs providing services in the Hospice. They further provide the Responsible Person (the CEO) and the Registered Manager with professional medical advice and provide assurance regarding the provision of medical services. It is Southern Area Hosplcè Servlces Ltd Report of the Trustees Year Ended 31 March 2023 chaired by Robin Brown and has 2 other mèmbers. All m8mbers are m8dics. It met a total of 4 times in the reporting period. Towards the end of the rèporting period, the MAC agréed it should review how it functions to ensure it is appropriately equipped to provide assurance and overview of all mattèrs related to medical seNice provision. This review will conclude in the current year. The Resources Committee provides oversight and scrutiny of Human Resources, Income Generation. Finance, IT, Support servI￿s (facility management seNices, administration, health and safety and GPDR) and investment management. The Committee continues to have a very demanding agenda ensuring that reports are robust, and the resources available used and accounted for approprlately. They have also been ensuring that transformation continues to take place in the areas it has responsibility for. The Committee consists of five members of the Board of Directors and is chaired by Donna Houston. In the reporting period, the Committ88 met 7 tim8S. The Audit and Risk Committee provides oversight and scrutiny of strategic rlsk managem8nt,' intemal audit., extemal audit. and manag8m8nt responses identified by any audit process. All of this is to ensure the ad8quacy of assurance for all corporate govemance matters relevant to Southern Area Hospice Services. In addition, th8 Committe8 can request any other speclllc work required to assure adequacy of govemance, assurance and probity. The Committee has 3 Board members (and 1 vacency) and is chalred by Monica Duffy. In the reporting period. it met 3 times. The Remuneration and Nominations Committee met once in the reporting period and Is chaired by Oda McPolin. Its functions from a remuneration perspectiv8 are to set CEO and Director salaries, pay-scale5 for the remainder of the organisation and to ensure Gompliance with equality legislation. Its Nomination functions are to ensure good t)oard governanc8 is maintained. to recommend appointments to the Board and to oversee the appointment of the CEO and Directors. The Capital Development and Infrastructure Committee is responsible for ensuring that capital projècts d81iver the desired outcome, progress to plan and budget and that key risks are identified and managed. The Committee will be involved in projects from concept to d81iv8ry. In line with the Board's direction, this Committ88's initial focus is on the capital works needed to futureproof th6 estat8 rèqulrèmènts for the Hosplc8. It has 4 mémbérs - 3 Board members and 1 co-optee- and is chaired by Roger Wilson. It mel 4 times durfng the rèporting period. It Should be noted that COwOPtees to Commlttees of the Board are not Trust8es and therefore not Directors. Conflicts of Interest As a matter of good governance, actual and perceived conflicts of interest are reviewed on a regular basls. All Board m8mbers and senior managers are réquired to make an annual declaration regarding any conflicts of intèrest and a schedule of responses is maintained. In addition, the declaration of conflicts of interest is a standing agenda item for each meeting of the Board and its Committees, with all pr8S8nt b8ing ask8d to declare if they have any conflicts of interest regarding any agenda items. Appointment of new Trustees New Trustees are recruited by open recruitment by existing Direclors to fulfil specific roles and skills on the Board. The potential Trustee is then interviewed by the Chairperson, Vice Chairperson and Secretary of the Board regarding their willingness to become a Twstee and their potential contribution to the Hospice is considered. Following this any potential Trustee is presented to the Board for their consideration and approval. Induction and training of Trustees Indudion and training for new Trustees is similar to those Set out for all employees of the charity. They are given an overview of the aims, objectlV8s and achievements. introduced to the Chief Executive and Senior L8ad8rship T8am. are provided with a copy of thé Memorandum and Articles of Association, the Hospice UK manual on Dir8Ctor responsibilities and details of the recent financial performance of the charity. All new Trustee5 meet with other existing Southern Area Hospice Services Ltd Report of the Trustees Year Ended 31 March 2023 Trustees, and théy a￿ encouraged to attend appropriate extemal training events should théy facilitate the undertaking of their role. Retlrement and rotation of Trustees The term of office of a Trustee shall be for a maximum of three term5 of three years each. A retiring Trustee of the board may be re-elected under these terms. The Trustees who retire in accordance with this regulation shall be those who have been longest in office since their last election but where persons who become Trustees on the same day tire (unless they otherwise agree among themselves), they are determined by lot. At the Annual General Meeting in September 2022, th8 following Trustees were due to retire by rotation.. Monica Dufy, Donna Houston, Michele Hutchinson, Orla McPolin and Roger Wilson. All were eligible and agreed to stand for r8-election and w8re duly elected. In the reporting p8ri0d, Clayre Scott reslgned {M8y 2022) and Martln Dillon was appointed as a Trust88 (March 2023). Management The Board is responsible for governance at a strategic level and meets regularly with the Chief Executlve who carrie5 out the day-towday management of the company supported by the Senior Leadership Team. The Committees of the Board also meet regularly with the Chief Execullve and Senior Leadership Team las relevant) to review performance and 8ddress any emergent issues. Senlor Leadarshlp Team The Sénior L8adership Team comprises of the Chief Executive, the Corporate Services Director. the Director of Care and the Director of Development. Pay and remuneration is set by appropriate benchmarking. Total cost of the Senior Leadership Team salaries and wages is as pèr note 10. Objectives and actlvltle8 The objectives of Southern Area Hospice SeNlces Ltd are the provision of a specialist palllatlve care service to patients wlth terminal illness, including cancer, motor neurone disease and multiple sderosis. The Hospice's services fall into 2 main cat8gori&s, nam8ly inpatient servitss and community-based services. The sèrvices in both ar&as are holistic in nature, comprehensively supporting the patient and their family. We have extremely professional and expert multi-disciplinary teams who ensure that our services. both in the inpatient unit and community, are of a high quality. evidenced based and safe. The Hospice has rec8ived funding from the Department of H8alth's Cancer Charities Support Fund to better support patients with 8 palliative cancer diagnosis. This funding has 8nablèd a developrnenl of its communlty sernices to ènsure a more targeted and multi-disciplinary approach that works in a collaborative way with other service providers in the Southem Trust area. Details of the Hospice's services and the acttvity levels of each of these services are provlded in the Strategic Report section. Southem Area Hospice Services Ltd is a member hospi￿ of Hospice UK and affiliated with the All-lreland Institute of Hospice and Palliative Care. We continue to d8velop link5 With other h05pi¢es at both a local and a national level. Public benefft This again has been another 8xceptional year due to the ongoing impacts of the Covid-19 pandemic as well as the cost-of-living Ghallenges. Our focus has been on continuing to provide services in a 5af8 and èff8Ctiv8 way. Southern Area Hospice Services Ltd continues to meet th8 definition of a public benefit entity under FRS 102 and in line Southern Area Hospice Servlces Ltd Report of the Trustees Year Ended 31 March 2023 th its charitable objectives as detailed throughout this report. Volunteers The charity is involved in the cornmunrly and is dependent on voluntary help. Our 300 volunteers mak8 a huge contribution to the work of the Hospice, bringing a divetsily of skills and experience. Our volunteers contribule across many areas of the charity including Teception and administrative dutles, helping paliènts at mèallim&s, providing réfléxology and counselling as well as transporting patients to and from Hospice appointments and working in the Hospice garden. Volunteers contrlbute greatly to V8rlous fundraising activities including flag days, cheque presentations as well as providing general assistance wilh the many fundraising events. The volunteers bring an extra dimension to the atmosphere of the Hospice. Their skills and contribution enhance our seNice and make an impact on the lives of our patients, their families and our staff. The Hospice could not operate wthout the invaluabl8 contribution of volunleers to its various departments and events. In gratitude The Board wish lo convey thelr slncere thanks to our stsff and the many volunteers who have so generously given their support to th8 organisation. Wlth the continued support of our staff and volunteers we look forward to conlinuing to enhance the delivery of our charitable s8rvic8s wlthin the communlty. Acknowledgements The Board wish to sincerely thank 811 Indivlduals, communities 8nd companies who have supported and donated to us throughout thls year. The easlng of Covid-19 r8Strictions throughout the year has allow8d supporters to re-introduce many fundraising events and many support8rs have yet again overwhelrned us wth their generosity. SAHS is extremely grateful for this support and financial assistance - it could not provide its services to the community without this. Strategic report Achlevements and performanc• Overall The Trustees are pleased to report that slgnificant progr8ss was mad8 towards achlavlng tha Hospice's objectiV8S despite continulng to manage the cngoing impact of Covid-19 throughout rnuch of the reporting period. Th8 Hospice covers the Southern Health and Social Care Trust geographical area, which includes the towns of Newry, Armagh, Dungannon, Banbridge, Lurgan, Portadown and Craigavon. Key a¢ts'vity levels for 5ervic8s offered durin9 the reporting period were as follows.. The Hospice's Inpatlent Unlt is a 14-bed unit which provides specialist palliative care lo patients and their car8rs', patients are admitted for various reasons including symptom or pain control, respite, or end of life care. It remained fully operational throughoul the reporting period despite the pandemic. Staff continued to successfully adopt new ways of worklng to ensure the service continued in a safe way. Numbers within the unit did fluctuate on occasions during the reporting perlod as a result of Covid-19 outbreak5 - high levels of communlly transmission were refl8Cted amongst patients and staff meaning restrictions had to be imposed to prot8J¢t patients and staff as best possible. At times during th8 reportlng perfod. we had to work with a reduc8d staff complement. Patient safety always remained paramount. Despite these challenge5, admissions increased from the previous period, wilh 223 new admissions, with an average slay of 14.5 days. We had 164 patients admitted for the first time and 59 repeat admissions. 141 patients were disGharged with improved symptom management. A total of 5,431 therapy Sessions were delivered: 1,911 Social Work sessions 1,461 Physiotherapy sessions 1,811 Chaplaincy sessions - 248 Complementary Therapy sessions Southem Area Hospice Services Ltd Report of the Trustees Year Ended 31 March 2023 Bed occupancy in our Inpatient Unit was 79% for the reporting year, slightly behind the targeted 8511A. Given the challenges of the Covid-19 pandemic and the impact this had on the operation of the unit for several periods across the year las referenced above), we are pleased that this level of occupancy was achieved and that the operation of the unit was maintained throughout the entire reporting period. Wè ar8 also delighted Ihat we were able to grow and develop our overall seNice provision during this period. Thé Southern Health & Social Care Trust provides some consultancy services to the Hosplcè. Th&s8 seNices were significantly detrim8ntally irnpacted in the reporting period becaus8 of crisi5 management due to the ongoing P8nd8mic and Trust Consultants being unavailable for worf(. An additional Consultant's post was successfully recruited by the Trust in year howev8r the Community Palliative Care Consultant also resigned in year 80 therefore thè team remains under resourced. We are concerned about the r8sili8ncy of the consultancy model and its Potential detrimental impact on the Hospice's abilily to provide services to patients with very complex needs. Over the reportlng period, we continued to develop our Communlty Servlcas model of support, movlng away from the traditional day therapy support model to an Integrated, multl-dlscipllnary, community-based specialist palliative support servlce for adults and their famili8s. This d8v8Ioprn8nt was possible due to the funding we are receiving from the Departm8nt of Health's Cancer Charltles Support Fund, managed by the Communlty Foundation. The service provides management of symptoms, including pain, as well as providing psychological. emotional and spiritual support. It is provid8d in the person's home or in one of the Hospice hubs. Services can be delivered on an individual or group basis and are based on patient and f8rnily need. There Were 620 referrals In the reporting period, 526 of these were cancer related, with 94 being non-cancer related palliative conditions. A totsl of 5,099 therapeutlc sessions were d8liv8red to patient5. carers and bereaved famllies: 361 sessions took place at home and 4.738 in a Hospice hub or other community setting 565 counselling sessions - 590 complementary therapy sessions - 455 one to one sesslons to those ber8av8d - 488 group work sessions Group work programmes have been significantly developed over the period and now include the following: Llving Well wth a Palliative Illness., Carers, Support Group. Family Night Bereavement Groups for parents, teens and young children,. Art Therapy Group for the bereaved-, Bereavement Walklng Group,. and Bereavement Walk in Café. We saw a significant increase in attendance at thes8 group8 in the last quarter of the ￿pOrting period and f88dback from att8nd88s has b8en very posltlve. Throughout the reportlng period, we continued to develop and grow Comrnunity Services. Recruitment difficultles for new rol8s and the impact of Covid-19 delayed the implementation of some aspects of the service and forced us lo reconfigur8 Other aspects. Substantial progress has been made nevertheless and the number of support sessions provided has increased significantly from th8 previous year. W8 are pleased with the level of progress. Throughout the year Ihe Hospice continued to provide some financial support to the Southern Health and Social Care Trust's Community Palliative Care Team lo help them respond to the need in the community. Work is ongoing with the Trust to ensure the benefits to both organisations continue. The Specialist Palliative Care Team in Daisy Hill Hospital was impacled by changes in the team throughout the year. The one remaining team member retired in year, and it was mutually agreed that the Hospice would no longer provide financial support to this team. Southern Area Hospice Services Ltd Report of the Trustees Year Ended 31 March 2023 Addilional services provlded by thè Hosplce Include: Training placements are provided for medical, nursing, social work and physiotherapy students at both under and post graduate level. The opportunity to provide these services was limited due to Covid-19 but where It was possible and safe, training placements continued this year. A Specialist Palliative Medicine out of hours telephone advice seNice is provided to the Southern Health & Social Care Trust medical staff, community and hospitals in partnership wlth our Trust Consultant colleagues. Covid-19 Managernent Whilst the Covid-19 pandemic has abated significanlly. the Hospice continued to face many challenges In Ihe last 12 months. We implemented Government safety measures in a timely manner and Gontinued to adapt our ways of working to keep services operating in a safe way for our palients, their loved ones, and our staff. Infection prevention and control management to ensure we provided a Covld-safe envlronment within the restrictions posed by our building restrictions has been and remains a priority. Staff are competent in this way of worklng and confidently managed any patients with a Covid-19 dSagnosis. We were gradually able to relax r8slriclions on visiting. All remains under review. Our T8am The staff wthin all functions of th8 Hospic8 have continu8d to show resiliency and commitrrsent throughout the r8POrting period. We wer& d81ighted to receive the Overall Team of the Year Award at Newry Chambels Employee & T8am Awards which took p18ce in September 2022. The Chamber said, 'the 8ward recognises an outstanding team that made an exceptional contribution to meet the challenges and demands of their organisation over th8 past two years" This is fantaslic recognition of the great work done by all in the Hospice during the pandemic. The Board of Directors would like to thank all staff for their ongoing dedication and cornmilmenl to the Hospice. Staff objectlves and porforrnance Employees are set objectives which outline their responsibilities, and which are reviewed regularly to ensure compliance. There is an increased focus on developing siaff lo strengthen their performance and allow them to attain their maximum potential which In turn beneflts the Hospice and our patlents. Training Is refreshed as required in order to ensure adherence to all requirernents. During the reporting period. we have signrficantly developed the training provision for our Care Services team to enhance our skills base, knowlÈdge and learning. For example. 8 Nurses completed the Princess Alice European Certificate in Essential Palliative Care and our Inpatient Services Manager ¢ornpleted Non-medical Prescriber training, Inspection All care services are the subject of unannounced, annual inspections by the Regulation and Quality Improvement Authority (RQIA). The latest inspection took place on 28th February 2023. We are pleased to report that the feedback from this inspection was positive, particularly In relation to the quallty of care provided and infection control standards. Inspectors were exEremely complimentary about the knowledge, motivation and cornmitment of all staff they spoke with. We were advised that the standard of care we provide is excellent and of a very high standard. Internal Audit Cavanagh Kelly carried out an internal audit programme in the reporting period. The agreed areas of focus were procurement, fraud risk and payroll. Whilst there were some minor recommendations arising, we received assuranc8 that our processes and controls are appropriate in these areas. All audit outGomes were rated as satisfactory. Income Generation Yet again. ihe finanGial support we received from the Hospice community and corporate supporters in the reporting year was amazing. Despite the numerous challenges faced in a turbulent economic environment marked by rising costs and Southern Area Hospice Services Ltd Report of the Trustees Year Ended 31 March 2023 global issues, the support and generosity of our loyal donors and supporters enabled us to generate an incredible £3.2 million. This extraordinary accomplishment was made possible through the success of various campaigns and initiatives, as Individuals ènthusiaslically resumed their fundraising efforts which had béen stymied throughout the worst of the pandemic. Several noteworthy campaigns deserve recognitlon, including the Big Bucket C8mpalgn, which raised 8n impressive £30,000 this year. Furthermore. we extend our heartfelt gratitudé to 81-year-old John Dalzell OBE, who completed his 31 st Annual Christmas Sit Out and made an incredible donation of £138,000. Additionally, after 8 forced hiatus, we were delighted with the retum of the annual dinner danc6 in March, which raised a rgmarkable £44,000. This success of this event wa5 due to the support of its rnain sponsors- Tinnelly Group and Ashtree Financial SeNices- and the Dancè Committee ￿0 organis8d a fantastic evening. The Hosplce recelved an extraordinary total of £206,000 from a group of 39 dedicated trekkers embarked on challenging joum8y through the Alps in September. This unforgettable axp&ri8nc8 saw them walk in three countries in three day5. Thelr inspirational fundraislng efforts have helped make a significant differenc8 to the patients we care for. Our Community and Support Groups rals8d a comblned total of £623,476. We were delighted to be 8ble to hold our annual Lights Campaign, in the Hospice's prernlses once again. In the run up to Christmas. This event generated £89,000 whilst providing 8 source of hope and joy during what can be a challenging time for those who attend. The Car Draw was promoted across various roadshows and raised £85,000 this year- truly fantastic accomplishment by all involved. We are immens81y grateful for the 16 legacy donatlons received thls year, totalling £154,543, showcasing the Immense generosity of our supporters. Our corporate partners played a pivotal role by raising an amazing £295,000, exemplffying their commitment to our cause. We are dellghted to report that the nurrtber of donors enrolled in Gift Aid increased by 7'A In the reporting perlod. This grovAh contributed to a remarkabl8 34% Increase in Gift Aid donatlons, generating £111,023 of Income. Gift Aid is an important revenue stream, and we encourage all eligible donors to sign up for Gift Aid, helping us to maximise the impact of their contributions. To achieve such exceptional results amidst an 8Xtr8m8ly challenging and competitive environment IS 8 testament to Ihe unwavering commitm8nt of our staff, volunteers, community. and corporate supporters. The Hospice extends its deepest gratitude to every individual who has stood by our side, demonstratlng thelr incredlble support. We are profoundly indebted to every person who has played a role in our continued success. As referenced in the last report, given th8 d8clining income and rising costs in the 3 Hospice shops, the decision regrettably was taken to close the shops to protect the resources of the Hospice. The shops ceased trading during the current reporting period (July 20221. The winding up of Southem Area Hospice Services Shop Ltd is now complete. The company was dissolved on the 11th July 2023. Communlcatlons The pandemic highlighted the need for the Hospice to become rnore digitsl and diverse in its stakeholder engagement approach. Like many other organisations we know we must improve how we communicate externally and intemally. As a result of the findings of a 3rd party audit of internal and extemal communications which was completed in the reportlng year, we are adding additional resource and skills to the Communications team and have increased the budget to deliver this in the current year. The Hospice 15 grateful to The National Lottery Community Fund (Dormant io Southern Area Hospice Services Ltd Report of the Trustees Year Ended 31 March 2023 Accounts Fund Nll for providing funding to enable it to develop a new website and to improve its brand image. We believe this activity and investment will raise the profile of the Hosplce which wll in tum increase support and income generation. Financial revlew The financial ststernents are presented in the standard fomiat required by Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their financial ststemenls in accordance wtth the Financial Reportlng Standard applicable in the UK and Republic of Ireland IFRS 1021 effectlve 1 January 2019}- (Charities SORP {FRS 102)) and cover the activities of Southern Area Haspicè Services Ltd and its subsidiaries Southern Area Hospic8 S8TviGes Shop Limited and Southern Area Hospice Services Lottary Limited. The statement of financial activities (SOFA) shows the gross income frorn all th8 sources and the split of activity between restricted and unrestricted funds. R86utts The net surplus for the financial year Is £423,60112022: Surplus £1,156,693) after accounting for legacies of £154,543 (2022., £589,202), Income in the year was broadly In Ilne wlth budget. The surplus year 8nd position is mainly due to an underspend In various area5, Particulady in salary costs, whSch is due to the challenges faced In r81ation to recruitment meanlng that positions were either not recrulted at 811 or much later than planned. The underlying po8ltion remains however that recurring funding from the government and voluntary sources remain8 a challenge in supporting the ongoing work of the Hospice. Reserves policy The Charfty's policy is to retain a level of frèe reserves which matches the needs of the charlty, both at th8 current time and in the foreseeable futurè. Free reserves are those unrestrlcled reserves not invested In fixed assets. which are avallable for general use, and include funds set aside for designated purposes. A Capltal Reserve to set asida funds to cary out identified capital projects was establishèd by the Trustees In 2015. The Capital Development and Infrastructure Committee (as referenced abov81 is r8sponsible for progress5ng capltal projects and whilst there was no spend from this reserve in the reporting year, the execution cf agreed plans will quire a spend in Ihe current year and this work is undernay. The Board has decided ta allocate a further £1 mllllon to the balance of £6,180,100 to increase these funds to meet future capital requirement5. A Research and Development Fund {"R&D°) was designated in 2017 to drive a transformational ch8nge. The strategic plan was agreed at the end of the reporting year (further details are later in the report) and has costs built in to deliver the required transformation and these will be budgeted annually as required across the life of the plan. There is therefore no longer a need for a separate R&D designated reserve. The Board has decided to Iransfer the full fund (£381,692) to th8 Capital ReseNe to meet future capital requirements. The Trustees have succe8d8d in maintaining reserves this year to meet committed expenditure and the Tunning costs of tha charity for a perlod equivalent to 6 months expenditure, which equates to £2,418,988. The Tnjstees believe that the period of 6 months is necessary In order that there is continuity of service and will continue to work towards the implementation of this policy. Legacles The Hospice's income from legacies significantly decreased from the previous year to £154.543. Due to ils nature, legacy income is difficult to predict. Work is underway to improve the Hospice's capability to grow this. li Southern Area Hosplce Services Ltd Report of the Trustees Year Ended 31 March 2023 Balance Sheet The cash position of the group and the charity as of 31 March 2023 remainèd strong with £6,183,799 and £2,738,994 respectively held within investments and in the bank12022'. £2,859,166 and £5,730,8821- The Trustees are satisfied with the retums during th8 year giv8n th8 8conomic envlronment. In accordance wth the Investment Policy a proportion of available investment funds have been placed with a Discretionary Fund Manag8r to avail of potentially improved retums than that currently available from cash deposits. Th8 Résources Committee continue to review thé current invéstment strategy and policy. Taxatlon As a Charity, the company is able to recover most tax deducted at source from its investment income and is not liable for corporation lax on its other income or on capital gains. Recovery is therefore made of tax credits and tax deducted from income received under deed of covenanl or gift aid. Future Plans 1. Strateglc Plan 2023 . 2028 During the reporting y8ar. with Input from all stakeholders. the Board and Senior Leadershlp T88m finalis8d the strategy for Southem Arèa Hospice Services for Ihe next 5 years from 2023124 - 2027128. The Hospice does not underestimate the chall8nge it faces in deliverlng this strategy, but it is fully committed to ensuring that specialist palliative care services are delivered to meet the growing need of the local communitles. The strategy has been deslgned to respond lo the following key strategic drivers.. The increasing demand for palliative care servic85, in terms of the number of patients requiring palliative care and the extent of palli8tive care required. The growing complexity of cases and conditions being cared for, requiring more specialist input. The need for a servSce d81iv8ry model that Is patient-cenlred ￿th the flexibility to adjust how and wher8 the care Is delivered, according to individual patient's evolvlng needs and preferences. - The need to build capacity and capability so that SAHS can provide the same level of specialist care equally across all care settings and equally across the geographic region. The pressures on availability of tralned palliative care staff, and the need to build resilience within staffing structures while the labour pool is being developed. The pressures on funding. as a r8suIt of Inflation and rising operating costs, as well as squeezes on funding sources. The Hospice's strategic aims over th8 next 5 years are: To develop its delivery model into a wraparound holistic S8rvic8 that can r8spond to patl8nt choice and seamlessly provide multi-disciplinary care in an inpatient unit, in the home or through community hubs, as required. To protect the unlque strengths that it has in its specialist palliative care skills and inpatient facilities. To firmly establish its role as a leading provider of specialist palliative care seNices in Northern Ireland. The delivery model will be developed to provlde a full patienl-centred service, including a 'hospice al home, servlce, an inpatient unit designed and equipped to th8 stsndards required and int8grat8d working partn8rships with other healthcare providers: The service that wll be provided., Holistic rnulti-disciplinary specialist palliative care in an inpatient Setting and in Ihe Community- Ensuring that the high standards of care are maintained, by developing robust staffing structures. efficient operations and continuing to enhance the breadth and depth of multidi5ciplinary care. - Where the service wll be provided.. The Hospice will provide ils wrap-around se￿iCe of care through both an inpatient setting and in the community, in individuals, homes as well as through community hubs. 12 Southem Area Hosplce Services Ltd Report of the Trustees Year Ended 31 March 2023 A capital project process wll be adopted to detemine how to further develop the Hospica's inpatient unit, to meet the current and future needs and expeclations from a hospice In-patient facility, with the possibilty of introducing additional services such as 'rapid access, short-term symptom managemént procedures. which could leverage additional funding. Community Services wlll be developed to incrèase thé capacity to deliver a 'hospic8 at home, model. According to availability of funding and staff, the 'hospice at home, servica wll be incrementally expanded in terms of the regions covered, thè hours covèrèd, the conditions covered and the level of care (Medical as well as Nursing and Ailled Health Professions). The ultimate goal will be to expand the offering to a full care service available in the hom8 2417, $0 that patients can seamlessly receiv8 SUPPOrt in both the inpatient unlt and in the hom8, as appropriate, - Who the service will be provided to: - There will be a continued focus on providing care to adults wlthin th8 Southern Trust area. The possibility of providing care services to the border counties in Ireland where the Hospice 15 the cIos8St provider will also be explored. To achieve these aims, th8 Hospic8 n88ds to focus on the followng key areas.. Investment in Car8 SeNlces Staff and Tralning.. The staffing structure In the inpatient care servlces structure is already vuln8rab18 to skills shortages within the sector. The Hospice needs to upskill and build cap8Clty wthin care services, to ensure that it has a robust and rim foundation for rnaintaining its high quality of services, to meet the anticipated increase in demand. to opts'rnise operating efficiencies and to protect against any future skills shortages. Inpatient Unit The deficiencles and restrlctions in the Inpallent Unit need to be addressed to m8et current and future needs and provide an efficlenl work environmenl In temis of layout and njnning costs. Funding - The Hosplce will requlre an increase In funding. to support Investment in staff, communlcatlons, technology. possible capital project, the expansion of community serVi￿S and ongoing impacts of Inflation. - The Income Generation team has been reconfigured to indude a small buslness development function whlch wlll add additional skills to this team. Communicatlons The Hospice will improve the understanding of it8 range of services across the Southern Trust area to ensure more people benefit from them as w811 as Increasing the number of supporters - which In tum wlll Improve income generation. The Hospice will review intemal and external communications with all stakeholders to maximise its effecllveness. Technology Ensure that wh8r8 possible technology slream5in8s proc8ss8s and removes unnecessary administration. enabling expansion of service delivery without a direct and proportional8 incr8ase in back-office Staffing. Innovation and Collaboration Innovative Ihinking will be ernbedded across the organisation, with everyone encouraged to continualty consider if there are new and more effeGlive way5 to operat8 and deliver seNices. Collaborative working with extemal partners and suppliers will be part of this innovative thinking, regulady considering if servic8 delivery could be enhanced through collaboration. 13 Southern Area Hospice Services Ltd Report of the Trustees Year Ended 31 March 2023 2. Funding and Income Generation Like other health and social care organisations the Hospice continues to face increasing costs from pay parity as well as in other areas, many driven by the cost-of-living crisis and inflationary pressures. Considerable analysis ha5 gone into the establishment of the budget for th8 year ahead and our future ants'cipated costs. We continue to be challenged on an annual basis to produce a breakeven operating budget, particulady so in the Cur￿nt year due to the new costs associated with the delivery of our strategic aims. Wè b8li8ve that this investment however will result in a more r8silient Service and drive increas8d Income in future years. The Hospice's relianc8 on recelving substantial income from the public remains unchanged. In the rèporting year. we generated £3.2 million from our communities which is 65 /0 of our total income {excluding monies received for designated purpose, such as the Cancer Charity Support Fund monies}. The amount we wll ne8d to generate in the current and future years is axpected to increase. The Hospice's cornprehensive strategic plan includes a focus on reduclng reliance on conventlonal income sources by diversifylng revenue streams. Thls involves the development of corporate support, seeking to grow donations from charitable trusts, increasing future legacy donations and growing the Hospice Lottery. Whilst we welcome the commitment from the Department of H8alth to look at the funding model of Hospices, this agaln has not gained traction in thls reportlng perlod, and we have been advis8d that it will not be progr8ssed in the current year du8 to their financial r8Strictions. Once again, we extend our heartfelt gratitude to everyone who supports us- we simply c8nnot accomplish what we do thout your invaluable support. Principal risks and unc8rtaintias Rlsk management The Trustees and Senlor L8adershlp Team Sd8nlty and actively manage the major rfsks to whlch the charity is exposed. This Involves: - An ongoing review of tha risks which the charity may face The assessment of the level of exposure presented by each identified risk - The estsblishment of systems and procedures lo mitigate those risks - The implementation of procedures designed to minimise the impact on the charity should any of Ihe risks materialise. Major risks which have been identifled and discussed by the Trustees include loss of reputation. perhaps due to adverse publicity, leading to a fall in public confidence in the charity and a consequent reductlon in voluntary income- a short-term fall in the value of our investment portfolio., and maintaining tha highest security of our infomiatlon to prevent loss of data. Further risks which have been h8ight8n8d by the current economic climate include.. a fall in income, either voluntary through donations and fundraising because the publlc has lèss capacity to give, through insufficiént funding support from the Govemment or through declining donations from our subsidiary company,. significantly increasing costs, mainly related to wages and energy,. the inability to recnjit sufficiently skilled and qualified staff to deliver care to the patients of the catchment area. As reflected earlier in this report, actions being taken to mitigate risk include.. developing alternative and innovative ways to generate income., having a focus on closely managing and controlling costs., a review of staffing structures 14 Southern Area Hospice Services Ltd Report of the Trustees Year Ended 31 March 2023 to build future resilience,. the ongoing review of our IT seNice provision, security and resilience, working in conjunction with our third party providers who provide professional advice in this regard,. continuation of an internal audlt process carrled out by an external provider which focuses on areas of potential risk., the ongoing review of processes and procedures to create efficiencies- and thè introduction of improved systems to increase efficiencies. The Trustèés tske all approprlatè staps lo modérate and manage the operational risks to which volunteers, staff and 8ssets of Southern Area Hospice Services Ltd are exposed. The Audit & Risk Committee oversee the risk register. This will be reviewed to ensu￿ il reflects any polenlial risks r81at8d to the strategic plan. Throughout the reporting period specific focus on risks relating to continuing to deliver safe services in a pandemic and the uncertainty around income have been closely monitored. Havlng consldered 811 the identified risks, the Trustees do not consider there to be a risk to the going concern status of the organisation. As is evidenced above, we conllnue to prudently adapt our ways of worklng and processes as required to best posltlon the Hosplce for the future. The Senior Leadership Team, In conjunction with the Board, are constantly rnoniloring this. The Resources Committee consid8rs the financial position on a monthly basis. Statamant of Tru8tee$' Responslbllltle8 The Trustees (who are also Directors of Southem Area Hospice Servlces Ltd for the purposes of company law) are responsible for preparing the Annual report and the financial staternent5 in accordance wth applicable law and regulats'on. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the flnanclal statements in accord8nce with Unlted Kingdom Accounting Standards, comprising FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the Trustees must not approve the financial slatements unless thèy ar8 sallsfled that they give a true and falr view of the state of the affairs of the charitable company and the group and of the incoming resources and appllcation of resources, including the Income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to: salèct sultable accounting policies and then apply them consistently,. observe the methods and principles in the Statement of Recommended Practice, Accounting and Reporting.. Accounting and Reporting by Charities (20151., make judgements and accounllng estSmales that are reasonable and prudent., state whether applicable UK Accounting Standards, comprising FRS 102. have been followed, subl8ct to any material departures disclosed and explalned in the financial statements,, prepare the financial statements on the going con¢em basls unless it is inappropriate to presume that the charitsble company will continu8 in operation. The Trustees are r8sponsibl8 for keeping adequale accounting records that are 5uffiGient lo show and explain the charitable CoMpan￿S transactions and disclose wth reasonable accuracy at any time the financial p051tion of the charitable company and the group and enable them to ensure that the fin8ncial ststements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fr8ud and other irregularities. 15 Southarn Area Hospice Services Ltd Report of the Trustees Year EndeAJ 31 March 2023 Subsithary undortaklng¥ The chartty took over ¢ontrcA of the Southem ArBa HosplG8 Services Shop Llmlted and S￿jthorn Area Hosplf Services Lottery Limited at the start of 2015 and thus has con8didat8d the tsvo entities into these financial statements. As noted earller, Southem Area Hosplce Services Shop LlmSted ceased trading during the reportlng perIc￿l and the company was dlssolved In July 2023. Examptlons from dlsclo8ur• The company has taken exemptlon from the requirement to produce 8 8eparate statement offlnandal actlvltles for the charlty under sedlon 408 and a charfty cash flow statement as the re8uIts are Induded In Ihe consolldated statements. Fund8 hdd as Custodlan tru•t••• on behalf of other• The Charity holds no funds as cu8todlan tnJste6s on behalf ol other8. 8tatom•nt of dl•¢lo•ure of Informatlon to audltorn In Ihe case of each TnJ8teelDirector in offlcv at the dote the DlrectiJr8' report 18 approved: so fw as the dlrector18 aware. therp Is no rdevant audlt Infomatlon of wfilch the group and charllable companV$ audbtors are unaware: 8nd they havg taken all the sleps that thoy ought to have taken a8 a director In order lo makè themselves aware of any relevanl audlt Infomiatton and to eslab118h ihgt the group and chwitsbl8 cornpany's audltor8 8ré awaré of that Inlomiatlon. Ind•p•nd•nt auditor• FPM wer8 appointed In November 2019. Th18 appolntment was for Ihr8e financial years 2019- 2022 wllh the )Ssibility of an extension for a further 2 years. The contract will b8 renewed each year at the AGM subJeGt to sal1sfact￿ performance. Approv81 of the Tru3tees' ReporL whlch ¢￿StIlute the Strateglc Report and th8 Dlrector8' ReporL By order of the Bowd PfjJWcL P Loughran TrusteelDirector Dat•: 8th August 2023 16 Southern Area Hospice Services Ltd Company Limited by Guarantee Independent Auditor's Report to the Members Year ended 31 March 2023 Opinlon We have audited the group and parent ¢haritsblè company financial statements of Southern Area Hospice Services Limited for the year ended 31 March 2023 which comprises the consolidated Statement of Financial Actlvities, the consolidated and charity Balance Sheets, the consolidated cash flow statement and the notes to the accounts induding a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion th8 Southem Area Hospice Limited's group financial statém8nts and parent charitable company financial ststements= give a true and fair vlew of the stste of the group and parent charitable company's affalrs as at year ended 31 March 2023 and of the group and parent charltable companys incoming resources and application of resources, Including its income and expenditure, for the year then ended; have b88n properly prepared In accordance with United Klngdom Generally Accepted Accountlng Practice., and - have b88n prepared In accordance with the r8quir8ments of the Companies Act 2006. Basis for oplnlon We conducted our audit in accordance wtth International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under th05e 5tsndards are further described in th8 Auditor's responsibilities for the audit of the account5 Section of our report. We are independent of the charity in accordance with the ethlcal requirements that are relevant to our audit of the accounts in the UK, Including the FRC'S Ethical Standard, and w8 have fulfilled our other ethical responsiblllties In accordance with these requirements. We beli8V8 that the audit evidence we have obtained is sufficient and appropriat8 to provid8 a basis for our opinior Concluslon8 relatlng to golng concern In auditing the financial stalemants. we have concluded that the Trustees, use of the golng conc8rn basis of accounting in the preparation of the financial ststements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that. individually or collectively, May cast significant doubt on the group and charity's ability to continue as a going con¢em for a period of at least ￿e1ve months from when the financlal statements are authorlsed for issue. Our responsibilities and th8 responslbllitles of Ihe Trustees with respect to going concern are described In the relevant S8Ctlons of thls report. Other Informatlon The other information comprlses the infomiation included in th8 annual r8POrt, other than the accounts and our auditor's ￿pOrt. The Trust8es are responsible for Ihe other information. Our opinion on the a¢¢ounts does not cover the other information and, except to the extent otherwise explicitly ststed in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with th8 accounts or our knowledge obtsined in Ihe audit or otherwise appears to be materially misstated. If we identify such material inconsist8ncie5 or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of thé other information. If, based on the work we have performed, we conclude that there is a material misststement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. 17 Southern Area Hospice Servlces Ltd Company Limlted by Guarantee Independent Auditor's Report to the Members Year ended 31 March 2023 Opinions on other matters prescrlbed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of our audit: - the information given in the Trustees Report for the financial year for which the accounts arè prepared is consistent with the accounts- and - the Trustees. Reporl has been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the Trustees and its environment obtsined in the course of the audit, we have not identified material misstatements in the Trustee5 Report. We hav8 nothing to report in respect of the following matters in relatlon to which the Companias Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not beèn kept, or retums adequate for our audit have not been received from branchès not visitéd by us,. or - the accounts are not in agreement with the accounting records and retums" or certain disclosu￿S of trusteas, r&mun8ration specified by law are not mad8', or we have not received all the infomiation and explanations we require for our audit. Re8pon8lbllltles of Trust888 As explained more fully in the Statement of Trustees Responslbilities, the Trustees are responsible for the preparation of the accounls and for being satisfied that they give a true and fair vi8w, and for such intemal control as the directors d8t8miine is necessary to enable the preparation of accounts that are free from material mlsstatement, whether due to fraud or error. In preparing the accounts. the Trustees ar8 responsible for assessing the charlty's ability to continue as a going concern, disclosing, as applicable, matters related to golng concern and using the going concem basis of accountlng unléss th8 Trusteès 8lther intend to liquldate the company or to cease operations, or have no realistic alternative but to do so. Auditorfs responslbilities for the audit of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the accounts 8s a whole are fr88 from material misstatement, whether due to fraud or error, and lo issue an auditorfs report that includes our opinion. Reasonable assurance Is 8 high level of assurano8, but is not a guarantee that an audlt conducted In accordance with ISAS (UK) will always detect a material misstatement when it exists. Mlsstatements 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 tsken on the basis of these account5. Irregularities, including fraud, ar8 instances of non-compliance with laws and r8gulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularit18s, including fraud. The exient to which our procedures are capable of detecting Irregularities, including fraud. is detailed below. We obtained an understanding of the legal and regulatory framework applicable to the company through enquiry of management, sector research and the application of Gumulative audit knowledge. We identified the following principal laws and regulations relevant lo the company- Companies Act 2006, Charities Act (Northérn Irèland) 2008 and the Accounting and Reporting by Charities: Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) (effective 1 January 2019). 18 Southern Area Hospice Services Ltd Company Llmlted by Guarantee Independent Auditorfs Report to the Members Year ended 31 March 2023 We developed an understanding of the key fraud risks to the entty (including how fraud might occur), the controls in placé to help mitigate those risks, and the accounts, balances and disclosures within the flnanclal ststements which may be susceptible to management bias. Our understanding was obtsln8d through r&view of the financial statements for significant accounting estimates, analysis of journal entries, walkthrough of the key controls cycles in place and enquiry of managemenL Our procedures to respond to those risks identified included, but were not limited to: Enquiry of management, and the entity's solicitors around actual and polential litigation and Glaims. Enquiry of management to identify any instances of non-compliance with laws and regulats'ons. Revièwing minutes of meetings of thosè charged wilh governance. Revlewing financial slalement disclosures and testing to supporting documentatlon to assess compliance wlth applicable laws and regulations. Auditing the risk of management overrld8 of controls, Induding through testing journal entries and other adjustments for appropriateness, and evaluating the business rallonale of significant transactions outside the normal course of business. A further description of our responsibilit185 for the audit of the accounts Is located on th8 Financial Reporting Council'5 website at.. http:Ilwww.frc.org.ukJaudltorsre5ponslbilities. This description forms part of our auditor's report. This r8POrt is made solely to the charitable COMpan￿S members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and regulations made under that Act. Our audit work has been undertaken so that W8 might stale to the charitable company's m8mbers those matters we are required to stal8 lo th8m in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone othèr than the charitabl8 company and Its member5 as a body, for our audit work, for this report, or for the opinions we have formed. Serf)FeMW JL Grant Isenlor Statutory Auditor) for and on behalf of FPM ACCOUNTANTS LTD Chartered Accountants & Statutory Auditor 1-3 Arthur Street, Belfast, BT14GA Date 19 Southern Area Hospice Ser¥lces Ltd Company Limited By Guarantee Consolidated Statement of Flnanclal Artivltles Year Ended 31 March 2023 Total Year 2023 Total Year 2022 Unrestrfrted Restrlcted Funds Funds Notes Incomefrom: Charitable Actsvities Grant Income 1,729,095 315,152 2.044,247 1,880,847 Donations and Legacies Sundry Income Gifts and Donations GiftAid Legacies Fundralsin8 Income 19,624 5,995 111,024 154,543 2,648,377 96 19,720 5,995 111.024 154.543 2,648,377 38.626 3.463 82,794 589,202 2,344,020 Investment Income Bank Interest Receivable 52,955 52,955 26,336 Other Tradln8 Acthiltles Commercial Trading Operatlons 252,007 252,007 377,654 Total Income 4.973.620 315,248 5,Z88,868 5.342,942 Expendlture on: Costs of Ralsln8 Fund5 General Fundralslng and Publicity Costs Commercial Tradln8 Operation5 663,396 128,001 3,918 667.314 128.001 446.723 279.149 Charltable Activltles Deliverln8 Hospice Servlces 3,713,535 329.126 4.042.661 3,563,402 Total Expenditure 4.$04.932 333.044 4,837,976 4,289,274 Net (loss)l&aln on Investrnent 127,2911 127,2911 103,025 Net Income/lExpendlture) 441,397 117.7961 423,601 1,156,693 Transfers Between Funds Net Movement In Funds 441,397 117,7961 423,601 1,156,693 Reconciliatlon of Funds Total Funds Brought Forward at l April Totsl Funds Carried Forward 9,703,678 10,145,075 67,056 49,260 9,770,734 10,194,335 8,614.041 9,770,734 The notes on pages 24 - 41 form part of these financial statements. The results relate5 to contlnuing activitie5. The company has no recognised gain5 and losses other than those included above and therefore no separate statement of total recogni5ed gains and losses has been presented. 20 Southun Area Hospice Senkn Ltd CoThpany limited By Gyarantee Consolldated Balance Sheet Year Ended 31 Marth 2023 Fkned assets Tan8lble Assets InvestnRnts li 1.594.616 805.470 1.649A70 830,659 2A80.5Z9 Currerta%ets 26.426 212,058 5.378.329 2,738,994 8355,807 25.705 329,379 2.028,507 S,730082 4114.473 Debtors Investments Cash at Bar& and In Hand Llabllltles Credltors: Fallln8 due wlthln ofte year 16 {561,5581 1824,2681 Netcurrent Assets 7,794.249 7.290,205 Tot•1 Amels l•M Currnnt UabllM•s 10,194,335 9.770,734 10,194,335 9,770,734 c￿lP Fwds •fflployed Restricted Funds Unrestritted Funds 49.260 10,145.075 10,194,335 67.056 9.703,678 9,770,734 The Itnandal ststements were approv•d aThJ authorfs•d for1ssu• byth• 8oard of Dlrectors on the 8th Au4ust 2023 and were $18ned on Its behalf by: P LO￿hr￿n Dlfyrt D Houston Cumpafty Aeglstratlon: N1038737 The notss on paw 24-41 fomb Part of these financlal statements. The results relates to contlnulng activitles. 21 5outhernArea HospkeSep•kes Ltd ConyryUmlt•d B¥G￿l•￿ta• 8alllKeSh•et Y•arETrded31 Marth 202J Tanglble Assets Investrnehts li 12 1594,616 805.470 L639.941 83Q659 147Q600 Stock5 Debtors In￿stMer￿ts Cash at Bank and In Hand 25127 33L474 5378,329 2,556,380 8,294010 417,639 I024507 5.535,297 IN￿.891 ihbfllths Credltors: Fall1￿ duewlthln one year 16 q505,IiSJ (731,0561 N•tCyrnntAs*ts 7,786,895 7,274135 Y•l¥l A55ets lejs Cunnt LI￿11t1•S 9.745,435 N•t •M•ts 9,745,435 F￿NI6￿MploYad Restrlcted Funds Unrestrlctsd Funds 49260 10,137,721 10,184981 67,056 9,678,379 9.745.435 The flnanclal 5tatemeDts were approved and authorTsÈd for ISSUÈ bythe 8o•Td of Dlrectors on the 8th Au8i&t 2023 *MI were s*Tred on bts behalf by. P iouthr4n DIYectsr Company R*tr•tloft: N1038737 22 Southern Area Hosplce Servlce$ Ltd Limited By Guarantee Con501idated statement of cash flows Year Ended 31 March 2023 2023 2022 Notes Cash used In Operatln8 Actlvltles 26 340,963 1,707,668 Cash flows from Investlng Acti¥ltles Interest Income Purchase of Tangible Fixed Assets Purchase of investments Cash provlded by lused inl Investlng Artlvltles 52,955 133.8831 13,351,923) (3,332.8511 16,304 136.078) 113.4821 133.256) Cash Ilows from Flnanclng Aetlvltles: Movement in Deposits Cash used In FlnanclnB Actlvltles Incre4selld•creasel In Cash and Cash Equl¥alents In the year Cash and Cash Equlvalents at the be8lnnlng of the year Totsl cash and Cash equl¥alents at the end of the year 12,991.8881 5,730,882 2,738,994 1.674,412 4,056,470 5,730.882 Cash and Cash EquS¥alents at the end of the reportlng perlod 2.738.994 5,730.882 23 Southern Area Hosplce Services Ltd Company Limlted By Guarantee Notes to the Flnanclal Statements Year Ended 31 March 2023 l) Accounting Policies The principal accounting policies adopted, judgements and key sources of e5tim3tion uncertainty in the preparation of the financial statements are as follow5: a) Basls of preparatlon The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective I January 20191- (Charities SORP IFRS 102), the Flnancial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Southern Area Hospice Services Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initia51y recognised at historical cost and transaction value unles5 Otherwise stated in the relevant accounting policy notes. b) Preparation of the accounts on a galn8 concern basls The financial statements are prepared on a going concern basls. Taklng account of the risk revlew undertaken by the directors they do not consider there to be a rlsk to the golng concern status of the charity or the group. As referenced in the Report ofTrustees a decision had been made to wind up subsidiary company Southern Area Hospice Services Shop Limited in Ottober 2022. The DSrectors will review the financial position on 3 regular basis, taking any action needed to ensure that charity remains fit for purpose and on this basis the assessment of the directors 15 that the charity is a going concern. c) Group financlal statements The financial statements consolidate the results of the charlty and Its subsldiaries Southern Area Hospice Services Shop Li mited and Southern Area Hospice Services Lottery Limited. We note that Southern Area Hospice Services Shop Limited ceased trading In July 2022, and was wound up In October 2022. These consolidated fi8ures include the 4 months trading. d) Incoming Resources Income 15 recognised when the group has entitlement to the funds, any performa nce conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably. The specific basis used is as follows: Government Grants Revenue grants are credited to incoming resources on the earlier date of when they are received or when they are receivable, unle55 they relate to a specified future period, in which case they are deferred, Donations Voluntary income received by way of donations, gifts and gift aid to the charity is included in full in the Statement of Financial Activities when received. Commercial TrL7ding Incorne Trading income represents the invoiced value of goods supplied during the year excluding value added tax. Revenue is recognised upon provision of the service to the customer. 24 Southern Area Hospio Servlces Ltd Company Llmited By Guarantee Notes to the Financial Statements Year Ended 31 March 2023 l) Accounting Policies- (contlnued) Fundraising income Fundraising income is included in the Statement of Financial Activities when received, unless it is for a specific event in which case it is deferred to the timing of the event. Legacies Income from legacies is recognised when there is evidence of entitlement to the legacy, receipt is probable and its amount can be measured reliably. Recelpt of a legacy, In whole or in part, Is only considered probable when the amount can be measured reliably and the group has been notlfled of the executor's Intention to make a distribution. Where legacles have been notlfied to the group, or the group is aware of granting of probate, and the criteria for Income recognltion have not been met, then the legacy Is treated as a contlngent asset and dlsclosed If materlal. Investment income Income from investments is included, together with the related tax credlts, In the Statement of Financial Activities on an accruals basis. e) Resources Expended Expenditure is recognised once there is a legal or constructive obligation to make a payment to a thlrd party, it 15 probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headln8S they have been allocated to activities on 3 basis conslstent with use of the resource5. Staff costs are allocated to activities on the basis of time spent on those activities. Costs of Ralsing Funds These are costs associated with attracting voluntary income and, as such, include the cost of producing advertising and publicity materials, the direct cost of fundraising events and salary costs. Chorltoble activities These are costs Incurred in providing medical and care services and facilltles wlthln the Hospice and, as such, Include prlmarlly the cost of medical supplies and staff costs. Pension costs The group contributes to a defined contribution scheme on behalf of employees. The assets of the scheme are held separately from those of the group in an independently administered fund and contributions are charged to the Statement of Financial Activities in the period to which they relate to. Governance costs Governance costs include those incurred in the governance of its assets and are associated with constitutional. statutory and strategic requlrements. Support Cost5 Support costs include the central office functions such as general management, payroll administration, budgeting and accounting, information technology. human resources and financing. These have been 25 Southern Area Hospice Services Ltd Company Limited By Guarantee Notes to the Flnancial Statements Year Ended 31 March 2023 l) Accounting Polbcies- lcontlnued) Support Costs rtd... Ilocated to charitable activities, costs of raising funds and governance costs on a basis consistent with the use of these resources. f) Fund accountlng The group has various types of funds for which it is responsible and which require separate disclosure. Definitions of the various types of funds are as follows: Restrictedfunds Restrlcted funds are to be used for specified purposes as lald down by the donor. Expenditure whlch meets these crlteria is identified to the fund, together wlth a falr allocation of overhead and support costs. Unrestrirtedfunds Unrestricted f unds are donation5 and other incomin8 resources received or generated which are expendable at the discretion of the charity in the furtherance of its objective5. Designotedfunds Designated funds comprlse capital reserve that has been allocated to meet future capital requlrements and a Research and Development reserve {R&DI that is set aside to drive transformational change Initiatives. g) Operatlng leases Where assets are acquired under finance leases, the capital element of the asset is included in fixed assets and amortised over the Ilfe of the a55et. The outstanding capital element of the leasing obligatlon is included in creditors falllng due. The Interest element is written off over the primary period. All other leases are accounted for as operating leases and the rental charges are charged to the statement of financial activlties on a straight line basis over the life of the lease. h) Tangible flxed assets Depreciation is calculated to write off the orlglnal cost less the expected residual value of the assets over thelr estlmated useful lives at the following annual rates:. Buildings: Fundraising O￿lCe Additions to day-care centre Freehold Hospice Buildings IO% straight line 4% straight line 1.5% straight line Fixtures, fittings and equipment Motor Vehicles 20% reducing balance 25% straight line Land is not depreciated. When the recoverable amount of a fixed asset is found to be below its net book value, the 35set is written down to the recoverable figure and the loss on impairment is recognised in the Statement of Financial Activities. 26 Southern Area Hospice Services Ltd Company Limited By Guarantee Notes to the Flnanclal Statements Year Ended 31 March 2023 l) Accounting Policies- (contlnued) h) Tanglble flxed assets ctd... The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. l) Investments Listed investments are stated at market value, on the basis of the middle market price at the close of business. Whilst day to day management of the investment portfolio is carrled on by experlenced, registered investment managers (currently Brewin Dolphin) the ultimate control and responsibilitv rests with the Trustees. j) Debtors Trade and other debtors are recognlsed at the settlement amount due after any trade discount offered. k) Cash at bank and In hand and current asset Investments Cash and cash equivalents includes cash in hand, deposits held at call with bank5, Other 5hort-term highly liquid investments with original maturities of three months or le55 and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings In current liabilitles. Deposits with orlginal maturities of greater than 3 months are shown as current asset or fixed asset investment5 depending on the date of maturity. l) Creditors and provlslons Creditors and provlsions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated rellably. Creditors and provislons are normally recognised at their settlement amount after allowin8 for any trade discounts due. m) Stocks Stocks are stated at the Sower of cost and net realisable value. At each balance sheet date. stocks are assessed for impairment. Donated goods into the shops are valued at 2ero as the value is their bagged weight which is Immaterial to the flnanclal statements. n) Forelgn currency Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary item5 measured at historical c05t are translated using the exchange rate at the date of the transaction and non-monetary items measured atfair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Financial Activities. 27 Southern Area Hospice Services Ltd Company Limited By Guarantee Notes to the Flnantlal Statements Year Ended 31 March 2023 l) Accounting Policies- (contlnued) n) Foreign currency rtd... Foreign exchange gain5 and10sses that relate to borrowing and.cash and cash equivalents are presented in the Statement of Financial Activities. o) Flnanclal Instruments The Charity has elected to apply the provisions of Sertion 11 'Basic Financial Instruments, and Section 12 Other Financial Instruments Issues, of FRS 102 to 311 of its financial instrument5. Financial instruments are recognlsed in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, the net amounts are presented in the flnancial statements, when there is a legally enforceable right to set off the recognised amounts and there Is an intentlon to settle on a net basis of to reali5e the asset and settle the liability simultaneously. Baslc financial assets Baslc flnanclal assets are initially measured at transaction prlce Includin8 transaction costs and are subsequently carried at amortised cost using the effectlve interest method unless the arrangement constitutes a financing transattion, where the transactlon is measured at the present value of the future receipts discounted at a market rate of Interest. Financial assets classlfied as receivable wlthin one year are not amortlsed. Basic financial liabilities Basic flnancial liabilities are Initially recognised at transaction price unless the arrangement constitutes a flnancing transaction, where the debt instruments is measured at the present value of the future payments discounted at a market rate of interest. Flnanclal Ilabilities classified a5 payable within one year are not amortlsed. Debt Instruments are subsequently carried at amortised cost, uslng the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classif led as current liabllitie5 if payment is due within one year or les5. If not, they are presented as non current liabilities. Trade creditors are recognised init1311y at transaction price and 5ub5equently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the Charity's contractual obligations expire or are discharged or cancelled. p) Employee Benefits The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or flxed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. 28 Southern Area Hospice Servlces Ltd Company Limlted By Guarantee Notes to the Flnancial Statements Year Ended 31 March 2023 l) Atcounting Polides- Icontlnuedl p) Employee Benefits ctd_. Termination benefits are recognised immediately as an expense when the company is demonstrablv committed to termlnate the employment of an employee or to provide termination benefits. q) Exemptlons under FRS 102 The Charity has taken advantage of the following exemption: from preparin8 a cash flow statement, on the basis that it Is a qualifying entity and the consolidated statement of cash flow includes the Charity's cash flows. r) Exemptions under Companies Act 2006 The Charlty has taken advantage of the followlng exemption: from preparing a Statement of Financlal Activlties on the basis that the Consolidated Statement of financial activities includes the Charity's statement. sl Critical accountlng estlmates and lud8ements In the application of the Charity's accounting policie5, the Trustees are required to make judgements, estimates and assumption5 about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estlmates and associated assumptions are based on historical experlence and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptlons are reviewed on an ongoing basis. Revisions to accounting estlmates are recognised in the period in which the estlmate is revised where the revision affects only that period, or in the period of the rev15ion and future periods where the revision affect5 both current and future periods. Criticoljudgements in applying the entity'5 accounting pollcles There are no critical judgements in applylng the group's accountlng policies. Critical accounting estimates and assumptlons Income from legacies is recognised when there is evidence of entltlement, recelpt Is probable and Its amount can be measured reliablv. Cost allocation is an accounting estimate that is recognised in Ilne with the accounting policy Note le. Depreciation is an accounting estimate that is recognised In line wlth the accounting policy Note Ih. 2) Legal Status of the Charity The charity is a company limited by guarantee and ha5 no share capital. The liability of each member in the event of winding up 15 limited to £1. 29 Southern Area Hospl¢e Services Ltd Company Llmited By Guarante• Notes to the Flnan¢lal Statements Year Ended 31 Marth 2023 3. Income from Charltable Actlvltles 2023 Totsl 2022 Total Restrirted Unrestrlcted Department of Health - General Funding other Government Grant Income 1.729,095 I,n9,095 1,756,625 31S,IS2 124,222 315,152 315,152 1.729,095 2,044.247 1,880,847 The 2022 Income total of £1.880,847 was spllt between £1,820,588 unrestrlcted and £60.259 restrlrted. Other Government Grant Income.. This income Is malnly income from the Cancer Charitles, Support Fund. It Is restricted as It tan only be used for the purposes Indlcated In the grant applicatlon. 4. In¢ome from oth•r tr•dln8 artlvltlqs The tradin8 subsidlarles of the charlty, Southern Area Hosplce Servlces Shop Llmited and Southern Area Hosplce Service5 Lottery Llmlted are Incorporated in the Unlted Klngdom (company numbers N1035977 and N1035958 respectSvelyl and pay a large proportlon of thelr proflt5 to the charlty under the glft ald scheme. Southern Area Hospice Servlces Shop Llmlted ceased tradln8 In July 2022 and was wound up In October 2022. Southem Area Hosplce SeThlces Shop Llmlted 7 Months 2023 12 Months 2022 Turnover other operating Income Expenditure Repayment to the Hosplce Corporation tax charge Net Proflt I ILossl 41,928 10.134 139,ISg1 130,8S81 166,189 31,341 1166,2951 131,31X)I 1801 {651 {17,9551 Aggregate share capital and reserves 17,955 Southern Area Hosp1￿ 5er¥lces Lottery Llmlted 2023 2022 Turnover Donatlons Other operatlng Income Expendlture Donatlon to the Hosplce Corporation tax tharge Net Profit 199,945 5.995 179,304 3,463 820 1112,8541 170,7001 171 33 188WI 1117.090) Aggregate share capltal and reserves 7,350 7,342 5. Investment Income 2023 2022 Interest receivable Investment Income 52,955 16,304 10,032 26,336 S2.955 30 Southern Area Hosplce Services Ltd Company Limlted By Guarantee Notes to the Finan¢ial Statements Year Ended 31 March 2023 6. Charltable Actlvitles - Deliverlng Hospice Servltes Restricted Unrestricted Funds Funds 2023 2023 Restrlcted Unrestricted Funds Funds 2022 2022 Total 2023 Total 2022 Staff costs Insurance Light & Heat Housekeeping costs Food and Medlcal Supplies Repalrs and Malntenance Recruitment Expenses Other Expenses Training Costs Depreciation Volunteer Costs Governance costs Support costs (note 81 300,768 2,640,816 2,941,584 48,618 48,618 94,416 94,416 20,954 20,954 102,789 106,21S 45,078 45,078 8,026 8,026 2,432 6.393 4,643 4,886 44,910 56,904 1,162 1,162 9,799 9,799 689,892 698.626 3,713,535 4,042,661 55,648 2,507,032 2,562,680 46,917 46,917 58,158 58,158 27,998 27,998 69,811 77,103 28,481 28,635 26,847 26,946 4,650 4,650 3,066 4,735 49,939 60,164 3,426 7,292 154 99 3,961 243 11,994 1,669 10,22S 7,501 7,501 657,260 657,915 3,487,660 3,563,402 8,734 329,126 655 75,742 Restricted Funds expenditure - see note on Restricted Funds Income under note 3. 7. Costs of Ralslng Funds Restrlcted Unrestrfcted 2023 2023 Total 2023 Restricted Unrestricted 2022 2022 Total 2022 Staff Costs Fundraising Expenses Light & Heat Repairs & Maintenance Rates Telephone Stationery and Advert15ing support Costs (note 81 3,414 395,474 398,888 224,755 224,755 5,457 5,457 3,534 3,534 623 623 15,080 15,584 254 254 18,219 18.219 663,396 667.314 293.357 111,007 4,350 4,718 3,451 14.965 544 14,299 446,691 293,357 111,007 4,350 4,718 3,451 14,997 544 14,299 446.723 504 32 3,918 32 31 Southern Area Hospio Servlces Ltd Company Llmlted By Guarantee Notes to the financial Ststements Year Ended 31 March 2023 . Support Costs Deliverin8 Hospice Servlce5 Basls of Allocatlon Generdtlng Funds 2023 Staff costs Staff Time/Usage Other Staff Costs Staff Time/Usage Repairs and Renewals Floor Space Recrultment Staff Costs/Usage Flnanclng Attual Training Costs Staff nmelusage Legal and Professlonal Costs Usage Depretiation Usage Loss on Dlsposal Usage General Administratlon Usage 531,315 16,450 4,388 6,078 6,277 325 35,185 21,592 712 76,304 698,626 531,315 16,450 4,388 6,138 19,166 360 35,185 21,592 712 81,539 716,845 12,889 35 5.235 18,219 Dellverln8 H05plce Servlces Bas15 of Allocatlon Generatlng Funds 2022 Staff costs Staff Tlme/Usage Other Staff Costs Staff Time/Usage Repairs and Renewals Floor Space Recruitment Staff Costs/Usage Financlng Actual Tralnln8 Costs Staff Time/Usage Legal and Professlonal Costs Usage Depreciation Usage General Administration Usa8e 499,763 15,244 3,160 21,107 4,994 499,763 15,244 3,460 21,132 17,388 353 15,397 25,255 74,222 672,214 300 25 12,394 353 15,397 25,255 72,995 657,915 1,227 14,299 32 Southem Area Hospice SeNlces Ltd Company Limited By Guarantee Notes to the Flnanclal SLitements Year Ended 31 March 2023 9. Results for the year Group 2023 Charlty 2023 2022 2022 Thls is stated after chargln8: stsff costs Inote 101 Audit fees- external Audit fees- internal (assurance only) Depreciation Operating lease rentals- property 3,965,061 3.614,906 3.921,150 3,139.850 13,OCKJ 13,000 10,000 10,0 4.12S 5,625 4.125 5,625 78,869 87,193 78,496 85,419 13,975 34,650 10. Employee Inforniatlon Group 2023 Charlty 2023 2022 2022 Wages and salaries Social security Costs Other pension costs 3A04,498 3,134,390 3,361,284 2,674,283 287.702 251.265 287,497 242,537 272,861 229.251 272,369 223,030 3,965.061 3,614,906 3,921,150 3,139,850 The average number of persons employed by the company lexcludlng Dlrectorsl durln8 the year, bv activity. was a5 follow5.. Group 2023 Charlty 2023 2022 2022 Support Staff and Fundralslng Dlrect Care Staff Catering and Housekeeplng 37 54 io ioi 36 48 13 97 36 54 io 31 48 13 92 loo The number of employees whose emoluments exceed £60,000 were: 2023 2022 £60.001- £70.000 £70,001-É80,0(hJ £80,001-£90,000 £90,001-100,000 Over ElOO,000 For staff whose emoluments exceed £60.000, penslon contrlbutlons amounting to £41,36512022.. £31,939) were paid towards a defined contribution pension scheme. Indemnity insurance for dlrectors, liablllty was purchased by the charity for £7,OfyJ12022.' £5,610). The total employee benefits. excluding employer5 pensions. of the key management personnel of the Group wa5 £322,102.6012022: £247,370) No charity trustee received payment for professional or other services 5upplled to the charity. 12022.. £nlll 33 Southern Area Hospice Services Ltd Company limited By Guarantee Notes to the Financial Statements Year Ended 31 Marth 2023 11. Tangible Fixed Assets Grou Land & Bulldlngs Flxtures & Flttlngs Equipment IT Motor Equlpment Vehicles Total Cost At l April 2022 Additions Disposals At 31 March 2023 1,972,566 510,648 11,528 700,687 22,355 155,5281 667.514 55,855 44.154 3,283,910 33.883 (56.5961 3,261,197 11.0681 54,787 1,972,S66 522,176 44,154 Accumulated depreciation At l April 2022 Charge for the period Depreciation on disposal At 31 March 2023 567,253 28,358 442,913 13,881 572,443 25,580 145,9721 552,051 16,339 7,889 13561 23,872 3S,092 3,161 1,634,040 78,869 146,3281 1.666,581 595,611 456,794 38,253 Net book amount At 31 March 2023 At 31 March 2022 1,376,955 1,405,313 65,382 67,735 115,463 128,244 30,915 39,516 5,901 9,062 1.594,616 1,649,870 Chari Land & Bulldlngs Flxtures & Flttlngs Equlpment IT Motor Equlpment Vehlcles Total Cost At l April 2022 Additions Disposals At 31 March 2023 1,972,566 510,648 11,528 64S,159 22,355 55,855 39,704 3,223,932 33,883 11,0681 3,256,747 11,0681 54,787 1,972,566 522,176 667,514 39,704 Accumulated depreciatlon At l Aprll 2022 Charge for the period Depreciation on disposal At 31 March 2023 567,253 28,358 443,091 13,703 526,666 25,385 16,339 7,889 13561 23,872 30,642 3,161 1,583,991 78.496 13561 1,662,131 595,611 456,794 552,051 33.803 Net book amount At 31 March 2023 At 31 March 2022 1.376,955 1,405,313 65.382 67,557 115,463 118,493 30.915 39,516 5,901 9,062 1.594,616 1,639,941 34 Southem Area Hosplce SeThlces Ltd Company Llmited By Guarantse Notes to the Finandal Statements Year Ended 31 March 2023 12. Investments Group and Charlty Cash Deposlts Investment In Equltles Totsl Cost At l Aprll 2022 Addltions Transferred to current assets Fair Value Profit/lLoss I Dlsposals At 31 M•rth 2023 352,787 2,102 477,872 830,659 2,102 127,2911 127,2911 354,889 450.581 805.470 Lon8terrn investments, which Include monles In depostt acounts of £354,88912022.' £352,787) whlch are due to mature In greater than 12 months and equity Investments £450,58112022'. £477.8721, are held wlthin the UnSted Klngdom and exSst prSmaril¥ to provide an Snvestment return for the 8foup. At the end of each Investmènt term the monie5 received are expected to be reinvested In further investment opportunltles lorthe benefit of the group. 13. Stockn Group 2023 Charlty 2023 2022 2022 Consumables 26,426 16,426 25,705 25.70S 2S,827 25,827 24,448 24,448 14. Debtors Gmup 2023 Ch¥rlty 2023 2022 2022 Trade Debtois Amounts owed by 5ubsidlary undertakln85 Other debtors Prepayments and accrued Income 156,840 239,37S 153,280 124,801 26A63 26,930 331A74 232.542 101,355 57,924 25,818 417,639 26,463 28,755 212,058 60,409 29,595 329,379 Amounts owed by subsidlary undertaklnis are unsecured, Interest free and are repayable on demand. 35 Southem Area Hosplce Setvices Ltd Company Umlted By Guarantee Notes to the Flnan¢lal St*ements YeaT Ended 31 March 2023 15. Current Asset Investments Group 2023 Charlty 2023 2022 2022 Short Tenn Deposlts Total 5.378.329 5.378.329 2,028,507 5.378.329 2.028.507 2,028.507 S.378,329 2.028.507 Current asset Investments relate to monles held in short tem) deposlt accounts and are due to explre within one year. 16. Credltor5: amounts fallln8 due wSthln one year Group 2023 Charlty 2023 2022 2022 Trade Credltors Other taxation and social security Accruals and deferred income Other credltors 74,127 114.885 317.007 55.539 561,558 107,209 99,196 $64,647 53,216 824,268 69,771 67,029 114,885 99,109 307.830 554,779 12,629 10,139 505.115 731.056 36 Southern Area Hospice Services Ltd Company Limited By Guarantee Notes to the Financlal Statements Year Ended 31 March 2023 17. Flnancial instruments Group 2023 Group 2022 Charity 2023 Charitv 2022 Falr value through proflt or loss Fixed asset investments 450,581 477,872 450,581 477,872 450.581 477,872 450,581 477,872 Flnanclal assets held at amortlsed cost Cash at bank and in hand Trade debtors Other debtors Investment In short term deposlts Investment in lon8 term deposits 2,738,994 5,730,882 2,556,380 5,535,297 156,840 239,375 153,280 232,542 55,218 90,004 53,393 83,742 5,378,329 2,028,507 5,378,329 2,028,507 354,889 352,787 354,889 352,787 8.684,270 8,441,555 8.496,271 8,232,875 Flnanclal Ilabllltles held at amortlsed cost Trade credltors Other creditors Accruals and deferred Income 74,127 170,424 317,007 107,209 152,412 564,647 69,771 127,514 307,830 67,029 109,248 554,779 561,558 824,268 505.115 731,056 37 Southern Area Hospice Ser¥l¢es Ltd Company Llmlted By Guarantee Notes to the Flnanclal Statements Y•ar End•d 31 March 2023 18. Analysls of tharltable funds Analysls of movements in funds Balance 31 Marth 2023 6roup l April 2022 Incomlns resources Expended lunds Giln on Invertments Transfers Re5trkted Funds 67.056 315,248 1333,0441 49.260 De51Bnated funds Capltal reserye Research and development reserve 6.180.11 381,692 1,381,692 1381,6921 7.561.791 General lunds 3,141,886 4,973,620 14,SQ4,9321 127,2911 11,000,0001 2.583,283 Total funds .770.734 5.288,868 14.837.976) 127.2911 10,194.335 lance l Aprll 2022 BJl8nce 31 March 2023 Charlty Incomlnq resources Expended fvnds Galn on Investments Trnnsfers R*strlrt•d Funds 67,056 315,248 1333,0441 49,260 D•￿Inated tunds CapStal reserve Research and developmtnt rtse 6.180,100 381,692 1,381,692 1381,6921 7,%1.792 G•n•r•l fundi 3,116,587 4,912,928 14,426,295) 127,2911 Ii,oco,0001 2.575.919 Totsl fund5 9,745.435 5328,176 14.759.3391 127,1911 10,186.981 Capltal Reserve- The Board has declded to allocate a further £1,381,692 to the balance of f6,180,I¢XJ wlth a view to contlnulnR to build these funds to meet future capltal requlrements. R&D Re5erve- The Board has declded to transfer the £381,692 of R&D fLtnds to the Capltal Reserve as followlnl completlon of the strateg1£ plan, 11 Is no longer deemed that therels a need for thls separate fund. See note In Reserves sectlDll ol the Strnteilc Report. 38 Southern Area Hospice Servlces Ltd Company Llmited By Guarantee Notes to the Flnancial Statements Year Ended 31 March 2023 19. Analysis of group net assets between funds Unrestricted Restricted General Deslgnated Total fund5 funds funds funds Fund balances at 31 March 2023 are represented by: Tangible fixed assets Fixed asset investments Net current assets Creditors: amounts falling due after more than one year 49,249 1,545.367 1,594,616 805,470 805,470 232,446 7,561,792 7,794,249 li Total 49,260 2,583,283 7.S61,792 10,194,335 Unre$trlcted Restrlrted General De51gnated Total funds fund$ funds funds Fund balances at 31 March 2022 were represented by: Tangible fixed asset5 Fixed asset Investments Net current assets Creditors: amounts falling due after more than one year 42,375 1,607,495 1,649,870 830,659 830,659 703.732 6,561,792 7,290,205 24,681 Total 67,056 3.141,886 6,561,792 9,770,734 20. Taxatlon Southern Area Hospice Services Ltd is recognised as a charlty by HM Inspector of Taxes, and as such is entitled to certain tax exemption5 on income and profits from investments. and surplu5e5 on any trading activities carried on in furtherance of the charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes. The Charity is not registered for VAT and accordingly, all its expenditure 15 recorded inclusive of any VAT incurred. This excluded certain types of expenditure where underthe terms of a new scheme which commenced on l April 2015, charities that are not registered for VAT are able to claim back an element of their input VAT. The charity has participated in this scheme from the commencement date. The Lottery is not registered for VAT and accordingly, all its expenditure is recorded inclusive of any VAT incurred. The Shop is registered for VAT and it5 expenditure is recorded net of VAT. 39 Southern Area Hosplce SeNices Ltd Company Limlted By Guarantee Notes to the Financial Statements Year Ended 31 March 2023 21. Free reserves Free reserves as noted In the directors report, are calculated as follows: 2023 2022 Total unrestricted reserve5 Tangible assets Fixed a55et investments 10,145,075 (1,545,367) (805,470) 9,703,678 11,607,495) 1830.6591 7.794,238 7,265,524 Total unrestricted reserves include £7,561,792 of deslgnated funds which are allocated to a Capital Reserve to continue to build these funds to meet future capital requlrements. 22. Related party transartlons and ultlmate controlllng party. The Board of Trustees are considered to be the Charity's ultimate controllin8 partv. Included withln trade debtors is £NIL {2022: £28,085) due from Southern Area Hosplce Shop Limited and £4,35012022: £3,920) due from Southern Area Hosplce Servlces Lottery Llmited as at 31 March 2023. Included wlthin trade creditors is £NIL (2022: £NIL) due to Southern Area Hospice Shop Limlted and £NIL {2022: £NILI due to Southern Area Hosplce Services Lottery Limited as at 31 March 2022. In 2023 Southern Area Hospice Services Lottery Limited made a 81ft of £117,090 to Southern Area Hosplce Senilces Ltd and Southern Area Hospice Servlces Shop Llmlted made a glft of £NIL to Southern Area Hosplce Servlces Ltd. 40 Southern Area Hosplce SeThices Ltd Company limited By Guarantee Notes to the Flnancial Statements Year Ended 31 March 2023 23. Llabllity of members All three group companies are companies Ilmlted by guarantee and do not have a share capital. The liability of each member is limited to an amount not exceeding £1. 24. Flnanclal tommltments The group had the following future minimum lease payment under non