Northern
Ireland
Hospice
Trustees Annual Report and
Consolidated Financial Statements
for the Financial Year ending
31 St March 2023
nihospice.org O@ooJ @
H••d Offic• 18 0'Neill Road, Newlownabbey. 8T36 6W8
## **Table of Contents**
Message from Chairman - ................................................................................................................................. 2 - 3 Message from Acting Chief Executive Officer ......................................................................................................... 4 Trustee and Other Information ............................................................................................................................... 5 Report of the Board of Trustees....................................................................................................................... 6 - 46 Independent Auditor’s Report ......................................................................................................... 47 - 51 Company Statement of Financial Activities ........................................................................................... 52 Consolidated Statement of Financial Activities ..................................................................................... 53 Company Balance Sheet As At 31 March 2023 ...................................................................................... 54 Consolidated Balance Sheet As At 31[st] March 2023 ............................................................................................. 55 Company Statement of Cash Flows for the Financial Year Ended 31[st] March 2023 ............................................. 56 Consolidated Statement of Cash Flows for the Financial Year 31[st] March 2023 .................................................. 57 Notes to the Consolidated Financial Statements for the Financial Year Ended 31[st] March 2023 .. 58 - 88
1
## **Message from Chairman**
When friends and colleagues heard I was considering volunteering as Chairman, they expressed some concerns and advised careful consideration given the scale of challenges facing the sector. The perfect storm of an economic crisis, extraordinary inflationary increases across food, fuel, and utility costs, combined with a depreciating level of funding from government and increasing demand for our services, made them understandably worried. Some were more blunt! When I asked my wife, who knows me best, she smiled, “Of course you will do it.” she said. “You cannot help yourself!”
Likewise, this is not just a job for our dedicated and talented staff and not just a hobby for our brilliant volunteers, fundraisers and Trustees, there is something inside all of them which they cannot help. This suits me. I just like working with good people who make a difference for our community.
And what a difference! NI Hospice proudly delivers invaluable specialist palliative care and support to local individuals and their families during their greatest time of need. For almost forty years the NI Hospice staff, volunteers and trustees have shown (along with our NHS brothers and sisters) what our often divided and broken community could and should be like - our Hospice family has only one label…”anyone who needs our care”
You may not know that our care extends well beyond the walls of Hospice and Childrens Hospice and into the homes of people across Northern Ireland. We have seven dedicated Specialist Community Nursing Teams who, in 2022/23, provided care and support for a total of 2,698 patients and their families right within their communities. Our Specialist Community Nurses enable people to receive dignity maintaining care in the comfort of their own homes, surrounded by their loved ones.
In 2022/23, it took over £20.1m – an increase of £1.8m from the previous year - to run Northern Ireland Hospice. We cared for over 4,200 babies, children and adults in total, all living with life limiting and lifethreatening illnesses, significantly alleviating the demands on our already overstretched NHS service. All this thanks to our staff and the wonderful people who support us with their time, skills and donations.
The majority of NI Hospice funding comes from the generosity and kindness of the local community. We only receive about 34% of our costs from the Government. This year, like all charities, we are facing severe financial challenges due to the current economic and political climate. Our energy costs have increased by 41% and the cost-of-living crisis has increased costs of staff salaries as well as clinical supplies, housekeeping supplies, catering etc. In effect this means the funding needed to maintain our services is not enough to keep pace with costs and increasing demand. That is a sobering thought given the demand for our care services is predicted to double in the next 10 years.
2
## **Message from Chairman (continued)**
Despite these major challenges it is with great pleasure that we share the recognition we have received from the Regulation and Quality Improvement Authority (RQIA) for the excellent standard of our care services. The RQIA's acknowledgement of the high morale and commitment demonstrated by our care teams is testament to the unwavering dedication and passion they bring to their work each day.
## **I extend my sincerest appreciation to all our incredible staff and volunteers for their ongoing commitment to excellence.**
In 2022/23, NI Childrens Hospice cared for over 317 babies and children as well as their parents, siblings, grandparents, and extended family. Our Children’s Services is a key part of our specialist palliative care services. We are the only Children’s Hospice in Northern Ireland, and we provide specialist palliative for babies and children with life-limiting illnesses. We support children and their families with specialist clinical care, practical nursing care, and emotional and psychological support, both in our In-Patient Unit in Horizon House and in family homes across Northern Ireland.
Northern Ireland Hospice has 700 dedicated volunteers who generously invest their time and enthusiasm into a variety of fulfilling roles across the organisation. Our volunteers are the backbone of Hospice, and we could not provide our services without them.
NI Hospice also has a thriving retail operation with 24 Hospice Shops located throughout Northern Ireland, packed with quality pre-loved goods donated by the public. The fantastic work they do raises £1.25 million per year to directly fund care provision.
Our NI Hospice and Children’s Hospice family will always have our arms outstretched ready to wrap them around babies, little children, adults and their families who need our help. Within those arms, their symptoms will be controlled, their fears allayed, allowing them, with their dignity maintained in a place of peace, to make lasting memories with their families, as themselves, their real selves, not defined by their illness.
“ What do we live for if not to make life less difficult for each other?” George Eliot This is what we do, we think it is the best thing that we do.
With kind regards, Gerry
## **Dr Gerry Millar MBE, Chair, NI Hospice and NI Childrens Hospice.**
3
## **Message from Acting Chief Executive Officer**
As Acting Chief Executive of Northern Ireland Hospice and Children’s Hospice, it is with great pleasure that I welcome you to our Annual Report. I am honoured to present a comprehensive overview of our organisation's achievements and milestones, as well as the challenges we have navigated over the past year.
Over the course of the last year, our teams have worked tirelessly to deliver care to individuals and families in need of our vital services. The demand for palliative care services is ever-increasing and our teams have surpassed themselves in delivering exceptional quality care and in supporting patients and families to have the best quality of life, right through to the end of their lives. Our teams have also continued to provide essential support to bereaved families, helping them to adjust to life in the absence of their loved one and ensuring care continues for as long as that support may be needed.
I couldn't be more proud of the entire Northern Ireland Hospice family for consistently going above and beyond the call of duty in their support for our patients and their families.
Last year was a momentous year for our Children’s services as we marked 21 years of Children's Hospice care at Horizon House. To commemorate this significant milestone, we brought Elmer’s Big Belfast Trail, a family-friendly ten-week public art trail, to Belfast. The event saw over 70 eye-catching and colourful elephant sculptures displayed in iconic locations across Belfast City Centre, uniquely designed by local artists, schools, and community groups. The event generated huge footfall and economic benefits to Belfast, attracting a phenomenal 241,935 visitors, with a total event economic impact of £12.5m.
We also co-hosted the All-Island Children’s Palliative Care Conference to mark 21 years of Children’s Hospice care gathering like-minded individuals and experts around the world to explore and shape the future of children's hospice care. We are very appreciative of the generous support we have received from our local community over the past two decades who have helped to fund the continued delivery of our services and enabled us to be there for children and families when they need us most.
Looking ahead, I am hopeful for the future of Northern Ireland Hospice, despite the obvious challenges we face. As an organisation, we remain committed to enhancing our fundraising efforts, forging and strengthening our community and corporate partnerships, and exploring innovative avenues to secure the necessary funds to sustain and develop our services. We also remain committed to investing in our staff and their well-being through greater communication, appropriate resources, and training.
None of our achievements would be possible without the continued support and generosity of our supporters, volunteers, corporate partners, board members, and our staff. Together, we have achieved remarkable milestones and positively impacted the lives of thousands of families in need. With your ongoing support, I am confident that we can overcome the financial and economic challenges ahead and continue to provide exceptional palliative care to those who need us.
**Trevor McCartney Acting Chief Executive Northern Ireland Hospice**
4
## **Trustees and Other information**
Company Number: NI014817 Charity Number: NIC102337 HMRC Number: XN45696 VAT Number: 308367790 Registered Office: 18 O’Neill Road, Newtownabbey, BT36 6WB
## **President**
Paul Clark MBE
## **Board of Trustees**
Dr Gerry Millar Chair Ian Sheppard (Appointed 5 May 2022) Vice Chair Garth Calow Treasurer Alan Dickson Dr Russell Houston Janice Smyth Andrew Talbot (Term ended 25 August 2023) Adele Martin Martin Murphy Joanne Ramsay Patrick O’Hagan (Appointed 7 July 2022) Steven Cockcroft (Appointed 2 March 2023) David Clements (Term ended 25 November 2022)
## **Finance Sub-Committee (FSC)**
Garth Calow (Chair), Dr Gerry Millar, Alan Dickson and Martin Murphy **Nominations and Board Governance Committee (NBGC)**
Dr Gerry Millar (Chair), Joanne Ramsay and Andrew Talbot **Remuneration Committee (RemCo)** Dr Gerry Millar (Chair), Janice Smyth and Garth Calow **IT Governance Committee** Patrick O’Hagan **Corporate Quality Governance Committee** Dr Russell Houston **Company Secretary** Myles McKeown (until 31 July 2023) Gillian Wright (appointed 1 August 2023)
## **Corporate Leadership Team**
Heather Weir Chief Executive Officer Trevor McCartney Director of Corporate Services Mary McCall Director of Commercial and Brand Development (until Feb 23) Deborah Burns Director of Care and Quality Governance Gillian Wright Director of Finance **Principal Bankers** Danske Bank, Donegall Square West, Belfast, BT1 6JS **Solicitors** Edwards & Co Solicitors, 28 Hill Street, Belfast, BT1 2LA **Auditors** Finegan Gibson Ltd, Causeway Tower, 9 James St S, Belfast, BT2 8DN
5
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Report of the Board of Trustees**
The Board of Trustees presents this report together with the audited consolidated financial statements for the year ended 31 March 2023.
## _**WE ARE NORTHERN IRELAND HOSPICE**_
We provide specialist palliative care to improve the lives of and provide comfort to babies, children, and adults with life-limiting and life-threatening illnesses throughout their lives. We support our patients to have the best quality of life, from diagnosis to the end of their lives, delivering holistic and specialist palliative care which is life affirming and which supports anyone who is affected by a palliative diagnosis including patients, families and health and social care professionals.
## **We do this through:**
## **Our Hospices**
We have two specialist Hospice units, Somerton House, our Adult In-Patient Unit and Horizon House, our Children’s In-Patient Unit, which is the only children’s hospice in Northern Ireland. Our multi-disciplinary teams provide high quality patient-centred specialist palliative care as well as compassionate emotional and spiritual support, wrapping our approach to caring around the entire family.
## **Our Community Services**
We have eight teams of Specialist Community Nurses that deliver care across Northern Ireland. These nurses support children, adults, and their families by working closely with social workers, GPs, District Nurses and community pharmacy to identify each person’s needs and develop personalised care plans which reflect individual choice.
Our Hospice at Home service provides one-to-one nursing care during the day, evening, or night to allow family members to have a break and look after their own wellbeing.
As the largest Hospice care provider in Northern Ireland, we deliver bespoke, high-quality education programmes and contribute to research as a member of the All-Ireland Institute of Hospice and Palliative Care and the Palliative Care Research Network Northern Ireland. This enables us to share our expertise for the betterment and furtherance of specialist palliative care for children and adults.
6
## **Report of the Board of Trustees (continued)**
## **MISSION VISION AND VALUES**
## **Our Vision**
Is that infants, children and adults with life-limiting and life-threatening illnesses and their families, receive palliative care of the highest standards, thereby maximising their quality of life.
## **Our Mission**
Is to inspire and deliver excellent and compassionate specialist palliative care via effective service models underpinned by exemplary education, innovation, and research.
## **Our Values**
We believe in:
- A culture of respect and acceptance without distinction or judgement, where everyone can belong.
- Acting with courage, compassion, and integrity to add value to all that we do.
- Being pioneering, professional and accountable to deliver our very best.
## **CHARITABLE PURPOSE**
Northern Ireland Hospice (Hospice) provides specialist palliative care services and support at no cost to patients with life-threatening and life-limiting illnesses, their carers, and families.
## **The objectives of Hospice are:**
- To promote comfort and relieve the suffering caused by illness of children, young people and adults living with advancing progressive conditions and their families by delivering specialist palliative care services and support (including but not limited to physical, social, spiritual, and psychological support) in Northern Ireland in particular, but not exclusively, through a range of facilities including in-patient hospice units and community services.
- To advance health and well-being, in particular palliative care services and support, through the provision of training for healthcare professionals as well as staff, volunteers, and others, and to conduct, or promote or encourage evaluation and research into the care and treatment of persons suffering from advancing progressive conditions in Northern Ireland and in any part of the world and to disseminate the results thereof.
7
## **Report of the Board of Trustees (continued)**
## **OUR STRATEGY**
The Northern Ireland Hospice Strategic Plan was developed as a roadmap for Hospice from 2018 to 2021. This was extended through to 2022/23 due to the impact of the COVID-19 pandemic and a new strategy is being developed.
The four objectives of the Strategic Plan were to:
1. Deliver World Class Palliative Care Services in Northern Ireland, supporting infants, children, and adults to live and die well in comfort and safety, surrounded by those most important to them.
2. Demonstrate the impact and value of our vital services, raising awareness of the charity.
3. Live the values of Hospice, making the care of others our motivation to continually learn and grow.
4. Demonstrate organizational excellence in all our activities, at the bedside and in the boardroom.
Keeping our purpose central to decision making and through the advancement of these objectives the Hospice has demonstrated its ability to be agile, resilient, ready to respond and thrive in times of challenge.
In this Annual Report, our focus is on our impact in 2022/23.
## **ACHIEVEMENTS AND PERFORMANCE**
## **OUR YEAR IN FOCUS**
Over the next pages we set out in summary and then in more detail our impact and challenges over the course of this year.
8
Ouryear in Numbers
2153
3876
Children's
bed-nights occupied
referrals to
community services
441
adult in-patient
unit Referrals
Provided 6,204.5 hours of
Hospice at Home care to
315
children
Accepted into the
Hospice at home
service
700+
volunteers gave 126,000
hours to Hospice
It took more than
Children's inpatient
admissions
285
£20.1m
to run Nl Hospice
6%
Increase in admission
from 281 to the adult
in-patient unit
133
rated
families were able to
stay with their children
in Horizon House
21
YEARg é
RE
Six children were admitted for
end of life care staying for
00
Children's Hospice
Services
nights
Our Challenges
The historic structure of statutory income continues to be a challenge for Nl Hospice, as with many
hospices across the UK. Our funding from the Health Service through various bodie5 Isee note 41. is
only 34% of costs, a level which is not sustainable and increases our dependence on the support of
individuals and companies in order to deliver these vital service
Government
funding equates
to only 34%
of costs. down
from 35% in the
previous year
Pressures on
HSC funding
The wider Northern Ireland political context renders it increasingly difficult to influence the funding
cuts that are being made in the Health Service. particularly in the absence of legislation giving a right
to palliative care here, in contrast to the position in England. Fundraising in the current economic
context of rising inflation and pressures on household expenditure is a challenge. Whilst thanks to our
amazing donors we have seen a 5.396 increase in donations against the previous year, there are increased
costs in paper and postage. contributing to an overall increase in fundraising costs. We continue to
review how we fundraise to ensure the best possible return on investment.
Absence of
Nl Assembly
making it difficult
to influence
decisions on
funding cuts
Right to Palliative
Care not in
legislation in
Northern Ireland
We work in a highly regulated environment which whilst ensuring that we can prove the excellent
quality of care we provide, also carries a financial burden. Additionally. to attract the best quality staff
we pay Agenda for Change rates in line with the wider health service in Northern Ireland and this
means that cost of living uplifts are outside of our direct control. Combined with wider inflationary
price pressures and the ending of favourable contracts. we have seen significant increases in areas
such as heat, light and power141%). We continue to work diligently to manage these costs.
Increases of
4-7 % in salary
bands in line
with Agenda
for change
Heat Light and
Power costs
increased
by almost
£99k141%
4-7%
10
## **Northern Ireland Hospice**
## **Trustees Report and Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **Adult In-Patient Unit Services**
The In-Patient Unit in Somerton House is a holistic care facility for patients who require palliative care for complex symptoms. We provide highly-trained specialist doctors, nurses, physiotherapists, social workers and volunteers to ensure the patient and family needs are fully supported. The Inpatient Unit is not simply a place where patients are cared for at the end of life, often patients come to the IPU for symptom management so that they can return home to enjoy time with their precious loved ones.
We admitted 285 patients into Somerton House, our In-Patient Unit to be cared for by our multidisciplinary team.
The average length of stay within our In-Patient Unit was 19.3 nights, again an increase in the length of stay from the previous year with occupancy levels remaining high at over 80%. For many of the patients admitted with complex symptoms and diagnoses late in their illness, it has meant that it has not been possible to discharge these patients to return home but to prioritise their comfort and quality of life within the unit. This is highlighted in the referrals, admissions, deaths and discharges data below:
**----- Start of picture text -----**
Referrals, Admissions, Deaths and Discharges
600
500
400
300
200
100
0
2020/21 2021/22 2022/23
Referrals Admissions Deaths Discharges
**----- End of picture text -----**
**----- Start of picture text -----**
Admissions by age category
180
160
140
120
100
80
60
40
20
0
18-45 46-59 60-65 Over 65
2021/22 2022/23
**----- End of picture text -----**
We have also seen an increase in the youngest age category of admissions, the under 45s, as well as in the 60-65 age category, again this confirms the pattern of complex symptoms and late diagnoses.
11
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Adult In-Patient Unit Services (continued)**
We were delighted to have an inspection visit from the Regulation and Quality Improvement Authority (RQIA) In our In-Patient Unit in December 2022. RQIA review of performance and the findings from external regulatory reviews have been commendable this year, which is a positive achievement considering the continuing impact of the pandemic coupled with the effect of the cost-of-living crisis on our services.
The RQIA inspection reports for Adults and Children’s services, indicate that NIH’s governance structures, policies and processes are fit for purpose, the charity is well led and the oversight and accountability from the Board is working well.
## **Adult Community Services**
In the community, our eight specialist nursing teams cared for 2,698 patients and their families across the Health & Social Care Trusts in Northern Ireland. With commissioned services for each Trust area, NI Hospice demonstrated overperformance in each area, providing an excellent level of palliative care in the home. We helped 2,041 patients to fulfil their wishes to die at home, supported by our specialist nurses who developed a person-centred health plan for each patient. We are however seeing an increase in waiting lists as the levels of demand grow. Some provision has been put in place in year to begin to address this in the Belfast and South Eastern Trust areas through partnership funding with the Strategic Planning and Performance Group of the Department of Health. Negotiations are ongoing in other trust areas.
## Community Waiting List
**----- Start of picture text -----**
200 163175
134 138 139
150 103 120
100 64
40
50 9 21 26 4 15 17 13
0
2021/22 2022/23
**----- End of picture text -----**
12
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Adult Community Services (Continued)**
Community Referrals, Admissions, Deaths and Discharges
**----- Start of picture text -----**
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2020/21 2021/22 2022/23
Referrals Patients Treated Deaths Discharges Waiting list
**----- End of picture text -----**
We have continued our work in the community that has been ongoing since October 2020, with a Specialist Palliative Care Clinical Nurse who is working in partnership with the REACH team to deliver enhanced care in care homes in East Antrim. A similar project has also been piloted on a part-time basis in the mid-Ulster region.
In 2022/23, we continued to advance our work to enhance holistic and specialist palliative care at home through funding from the Cancer Charities Support fund. The work that has been funded until 2024 aims to increase the number of people Northern Ireland Hospice cares for each year alongside GP and District Nursing Key Worker partners and in collaboration with Health & Social Care Trusts. It will provide more encompassing care through a multi-disciplinary approach to community Specialist Palliative Care that includes Hospice Specialist Nursing, Hospice Social Work and Complementary Therapy when appropriate to improve the quality of life of people with cancer in their own homes. The service aims to reduce avoidable hospital attendance and admissions and supports not only the patient but the wider family.
13
**Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
14
Even her room in Hospice was greor, with herown bathroom, it meontthat Icouldstaywith Joanne and
get washed without hoving to go home. The rM hadits own entrance which led out to the garden. it
as lovely to have that space. The team atHospice even gave us our own r(x)m so we couldstayover, they
got U5 coffeeandfood in the evening. It 5(xJnds likeju5t little thing5 but whenyou are waitlng andsitting in
the room, those things mean the world to a famity. .
Tina remembers the drfferent levels of care and allention that they received at Hospice. ryn my work
I wouldhfft been coming to Hospice as a salesperson- I never thought I wouldbe coming into the
building as a visltor. Butcoming irjto the Oldschoolhouse Cafe fora breakfrom the waiting wa5 amazing,
you were immediatelygiven 5ce comfortandunderstanding by thestaff and volunteer5- It was a real
haven forme.-
rhecarejoanne received was ju5tamozing"Beth commented, 1wa5ocareas5[0ntandrwoii1dbe very
cnticalof the 5tundaTd5 ofcare butlcouldn t foultthe"quaiityofc(ire thatJ(x7nne received. The Healthcore
Assistonts cameandchangedJLxHpne, m0kryherconrfDrtob*jftOftfjknne
rety. BetaU5e -.
Joanne*sntnscioU5 theirefforts madeall the difference to me- she lookedcomfortt7bleandlike-:
herseff which made the situGlion a litile e05ier for us."
-joanne was odmittedon Monday andon theSaturday the doctorsaid to me don t go too far today. I was
jUSt in the room and myhu5banddecided togo out into the garden, the sun was shining and the garden
as beautiful. it wos a verypeocefulmoment. With the rays olthe Sun coming into the room, I was able to
Snd a quiet moment w1thJ(nne andsoymygoodbyes.
Iwillneverforget thatmoment.
The Hospice team kvorked together
to make lifecomforiable for my
daughter and itallowed me to be
ith her. Ifjoanne had remainedot
home. I wouldhave been washing
her, turning herandchanging
the bedclothe5.1 w(yuldhave had
some help but thatl what my last
days with Joonne would have been
focused on- in5teadof having the
time when she wasn'tinpain, was
comfortoble ond Icouldsimptyjust
be with her."
T J
Joanne passed away on
Saturday 12" October 2019.
Rest in Pea.
LITTLE
4 Northern
Ireland
Hospice
15
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Children’s Services**
In 2022, we celebrated 21 years of care provided by Horizon House, our purpose-built paediatric InPatient Unit. Throughout the year we celebrated with a range of activities and developed a ‘21 Years of Care’ campaign that ran throughout all children’s activities and messaging.
In May, in partnership with the Antrim & Newtownabbey Council, we hosted a special Tea Party in Antrim Castle Grounds. We invited children and families that have received care since Horizon House opened in 2001, as well as staff, volunteers, trustees and key supporters of the service. The event provided the opportunity to show our appreciation to everyone that has supported our children’s services over the years and to celebrate the level of excellence in our clinical service.
Following a year of planning in October, the 5th All Island Children’s Palliative Care Conference was held in Belfast for the first time, this was due to the commitment and hard work of the Head of Children’s Services, Grace Stewart as co-chair on the Conference Committee. The conference’s overarching theme “Communication: compassion and common ground” explored the aspect of clinical capacity in order to appreciate all the perspectives at play, thinking about the hard questions, when and how they need to be asked and encouraged attendees to examine dignity in life. The conference proved very successful with a full turnout and helped to raise awareness around the vital issue of paediatric palliative care across Ireland.
NI Hospice played a pivotal role in the development and implementation of the first antenatal pathway for Northern Ireland. Following the launch of the pathway by the Regional Paediatric & Palliative Care Network, NI Hospice focused on embedding the ‘Tiny Horizons’ service as a key element within the pathway. For the first time parents will now receive consistent support when they receive the terrible diagnosis that their child has a condition that means they will have a shorter life.
In 2022- 23, Children’s Hospice supported 317 children and their families as well as 107 bereaved families and 15 antenatal mothers from across Northern Ireland.
At our 10-bedded Children’s In-Patient unit (Horizon House) we provide specialist short breaks and palliative care to babies, children and young people with life-limiting and life-threatening conditions from across Northern Ireland. Our team of skilled staff provide pain and symptom control, respite care, stepped discharge from hospital, end-of-life care and care after death. We strive to address not just a child’s physical needs, but their emotional and spiritual needs too. Our aim is to ensure children with palliative care needs have an improved quality of life and provide a supportive environment at the end of their life. We also understand the impact an illness has on the whole family and offer wide-ranging support for family members.
16
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Children’s Services (cont’d)**
Children staying with us can benefit from a range of activities such as: sensory play, soft play, music therapy and arts and crafts. The whole family can enjoy time together making memories.
Our care is delivered by a specialist in-house team of registered children’s nurses, health care assistants, physiotherapists, and social workers. We have a team of local GPs who have been working with Children’s Hospice for many years and are available for all children as necessary 24 hours a day as well as visiting or contacting the hospice every day. We seek to work in partnership with medical teams already providing care to the child and family.
Last year:
- 811 inpatient admissions, a six per cent increase since 2021-22.
- 2153 bed-nights were occupied during the year.
- The average length of stay was 2.6 nights.
- Six children were admitted for end of life care staying for 31 nights.
- 17 nights care after death was provided.
- 133 families were able to stay with their children in Horizon House, despite the changing covid-19 visiting rules.
**----- Start of picture text -----**
Bed KPI (Nights) Achieved 2022-23 Occupancy (%)
(Nights)
Core 1,500 1,522 106%
I’m Coming Home 310 310 100%
1Hour + 300 300 100%
Funded - 21 -
TOTAL 2,110 2,153
**----- End of picture text -----**
**----- Start of picture text -----**
Diagnostic Category - Referrals Accepted
30
25
20
15
25
10
5 10
6 4 4
3
0
2022-23
**----- End of picture text -----**
## **Referrals**
58 referrals were made to Children’s Services in the period and 52 referrals accepted. Of these referrals, 30 were for babies aged under one year (seven were neonates). Details of the diagnostic categories of children that were accepted to the service in 2022-23 are given in the graph to the left.
17
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023 Children’s Services (cont’d)**
15 antenatal mothers from across Northern Ireland who had received an antenatal diagnosis of a potentially life limiting or life threatening condition for their baby, were supported (an increase of 25%). Our Children’s Hospice Nurse Specialists ensured that the care and support mothers, their babies and their families received at diagnosis and through their antenatal care informed them about choices, advised them about benefits and risks of each option and assisted them, as a family, to plan for any of the possible outcomes for mothers and their babies.
## **Deaths**
We know that every family’s experience of losing a child is unique and always devastating. Some will care for a child with a life-limiting illness for years, others only hours. Whatever the situation, Children’s Hospice provides families with care, support and practical information at the most unbearable of times and helps families to make informed choices about their wishes.
On average, three babies/children that Children’s Hospice cared for died each month (41 in the period), an increase of 11% on the previous year. Over half (54%) were babies aged under one year (14 were neonates).
**----- Start of picture text -----**
Deaths by Age
15
10
13 14 12
5 10
3 2 7 6 3 3 1 4
0
Pre-birth Newborn to 29 days - 4 5 - 11 Years 12-15 Years 16 - 18 Years
28 days Years
2021-22 2022-23
**----- End of picture text -----**
Four children who passed away in 2022-2023 were cared for and died in Horizon House. 27% (11 children) were supported by NICH community services to die at home.
18
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023 Children’s Services (cont’d)**
## **Discharges**
57 children/young people, bereaved families and antenatal mothers were discharged from the service in 2022-23, compared to 78 in 2021-22.
During the period, 15 children were discharged. 28 bereaved families were also discharged following a minimum period of two years’ bereavement support and 14 antenatal mothers were discharged from antenatal care but supported as family members during their post-natal period.
## **Family Support**
At Children’s Hospice we are committed to providing services for the whole family. Our Family Support team offer 1-1 support to parents, siblings and grandparents and extended family members who require support – we aim to bring families together. Families benefit from peer support via coffee mornings, parent support groups, Mums and Dad’s days, family days and bereavement support groups.
During 2022-2023, our team of qualified Social Workers and our counsellor provided complex and specialist therapeutic support via 264 face to face contacts and 316 virtual contacts, this included 30 one-to-one counselling sessions. Additionally, 19 events were organised and attended by 263 family members.
## **Community Services**
Children’s Hospice Nurse Specialist (CHNSs) are community-based and provide 24-hour support to families at home, working alongside other health and care providers.
In 2022-2023, CHNSs made 302 face to face interactions and 611 virtual contacts with children and their families. They also worked in conjunction with NHS colleagues making 309 contacts with them in the period.
## **Hospice at Home**
Our registered Hospice at Home nurses and healthcare assistants provide care and respite in a child’s home allowing parents/carers to take some time out knowing their child is being cared for by our highly trained and experienced team.
Last year, we provided over 6200 hours of Hospice at Home care to 51 children who reside in the Northern, South Eastern and Southern Health & Social Care Trust areas **.**
19
Ii++l
S+AYS E;Iino¥A
+++
Meet our
Little Star
Four-year-old Eilinora- also known as Nora - lives with a rare genetic condition and has been cared for
by Hospice since she was two. Her mum, Grace, tells us the story of Nora.
Nora is very bold - she loves her brother and 515ter but loves to hear them getting told offl. She loves it when
people talk and sing to her. music, and stories. She loves lights, getting out for walks and going in the hot tub
and the bath.
Nora developed normally for her first three or four months and then started to have seizures which they
initially thought were infantile spasms.Then we got the diagnosis she had SCN8A, a rare genetic condition
that can cause a whole spectrum of things that she suffers with - seizures, developmental delays, feeding
issues, respiratory issues - all sorts of issues.
She is non-verbal but definitely tells you when she d(*sn't like somethingl We also get Squea and smiles, a
lot more smiles this year. Fingers crossed they last. Shes always got a little smile for her daddy.
When Nora was alx)ut two. we had some serious feeding issues and were in hospital for a long time.That was
when H05pice got involved. We met R05ie. the palliative care nurse linked with the Royal Hospltal. A hospital
nurse told me. Yhepalliative care team ore coming to meetyou-. Immediately I was thinking. -They know
Something I don't. This Is reallybad. Whyare wemeeting thepalliative care teamr
I was scared and really re5iSted it. I piobably
wasn't the nicest to Rosiel But they were really
patient with us, persistent and respecrful as
they talked us through it. We fealised that it s
notjust about caring for Nora at the end of
her life, It has been much more than that. I'm
so glad I stopped resisting.
Hospice has done a lot for us.Ourcommunity
care hospice nurse, Bethany Mccracken,
became our guardian angel. She couldn't
have done any more for us. We've had
Hospice at Home where Hospice nurses have
come here and sat with Nora. which was
great - especially when Eilinoras younger
brother Fionn was a little baby- so I could
nap ordo the dishe
20
We missed the assisted short breaks in the Children's Hospice during COMD. We all visited before the
pandemic kicked in- Fionn was a month old at that point- so it was full on, but great. Edie has done the
Hospices summer schemes. It's good for her just being around other siblings that have sisters or brothers like
Nora.
We've been able to Stay more Tecently at Hospice. For us. theres nothing better than being able to go and put
your head on the pillow and get a full night s sleep, knowing that Nora's safe with people you can trust.
Nora loves itl Shes pampered like a princess when she¥ there.They do massage, painting and music therapy.
We arrived back one day. and she was on the water bed in the sensory rcM)m with someone playing guitar
and singing to her. A lovely way to spend an afternoonl
When we go there. they set up the den
and we can all sit together stress-free as 3
family and watch a movie. And if Nora needs
suctioned or has a seizure halfway through,
they can take care of that.
There are little things that FEople take for
granted that are so important. It doesn't
happen very often, but Hospices support
makes those things possible for me and
my husband, Gerard. It isjust really, really
important to us and makes life more
bearable. Whenever you live a life like this.
it's hard. But when theres people that help
you and care about you and genuinely will
do anything they can to help you, there's
nothing like it.
Northern
Ireland
Childrens
Hospice
+,Li++lt
+ + S+AYS
Northern Ireland
Children's Hospice
18 0'Neill Road
Newtownabbey
BT36 6WB
Tel: 028 9078 1836
www.nihospice.orgllittlestars
R•gknt•r•dwlth
FUNDRAISING
REGULATOR
Charity Number NICI02337
21
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Fundraising**
The lingering effects of COVID-19 and the current economic climate continue to pose significant financial challenges for our Fundraising Teams as we navigate our way through an unprecedented costof-living crisis, combined with cost pressures associated with the rise in inflation, soaring energy bills, and a fall in donations.
Despite the challenges presented, we remained steadfast and committed to our efforts in generating vital income through new and innovative fundraising campaigns and events. Staple campaigns such as Hospice Walks, Big Coffee Break, Kindness Counts and Lights to Remember continued to be the foundation of our fundraising efforts.
2022 was also a year of reflection and celebration as we celebrated 21 years of care in Horizon House, our Children’s In-Patient Unit. To mark this significant milestone, we hosted Elmer’s Big Belfast Trail, a ten-week public art trail throughout Belfast City Centre which saw 250,000 people actively engage with the trail and generating a total event economic impact of £12.5m.
## **Here are some of our key fundraising highlights throughout the year;**
## **Lights to Remember**
The easing of lockdown restrictions enabled us to facilitate our popular in-person Lights to Remember event, following a two-year hiatus. There was a huge demand for the ticketed service with over 600 guests coming together to remember and honour their special loved ones. The online service was supported by the creation of our online virtual Christmas tree where people could leave dedications for their special loved ones. The feedback from the in-person event was overwhelmingly positive with many families finding mutual support, comfort, and hope from our special service.
## **Kindness Counts**
Partnering with local primary and secondary schools across Northern Ireland, we continued to champion the Kindness Counts message through our targeted Schools campaign, Kindness Counts. The campaign was hugely successful with 43 schools taking part, collectively raising a phenomenal £30,151.95. This is an increase of 20 schools from the previous year and a 348% increase in donations from 20/21. Relationship building and networking throughout the campaign were fundamental to its success. Pharmacy Plus came on board as our official campaign sponsor which helped to drive campaign recruitment, greater brand awareness and visibility, and delivered a greater return on investment.
22
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Fundraising (cont’d)**
## **Hospice Walks**
Community-led events such as our annual Hospice Walks proved to be a hit with the general public. 2022 saw the return of our in-person walks with 7 scenic walks and 3 challenge walks taking place across the country. Hundreds of supporters came together and joined in the fun to walk in memory or in support of their special loved ones – raising an incredible £65,000 for Hospice.
## **Elmer’s Big Belfast Trail**
To celebrate 21 years of care at Northern Ireland Children’s Hospice, we partnered with Anderson Press and Wild in Art to bring Elmer’s Big Belfast Trail – a ten-week public art trail to Belfast. The event saw over 70 elephant sculptures dotted across Belfast city centre, many of which were painted by local schools as part of the Elmer Learning Programme, and the remainder by renowned artists.
Relationship building and networking for the campaign were key with many leading companies coming on board to support the trail, including Belfast City Council, Antrim and Newtownabbey Council, Ulster University, O'Neill's Sportswear, Lost City Adventure Golf, and more. The event generated huge footfall and economic benefits to Belfast with 241,935 visitors with a total event economic impact of £12.5m.
## **Business of Caring**
We received magnificent support from businesses and organisations across Northern Ireland who responded positively to our new Business of Caring Corporate Partnership programme. In return, companies were able to strengthen their brand image with a positive association to Northern Ireland Hospice and boost staff morale with various team-building activities, and much more. Thank you to all our business partners for their ongoing support.
## **Fundraising in the community**
It is only through the outstanding support, generosity, and commitment of our wonderful supporters that we can continue to provide our much-needed services to patients and families across Northern Ireland. Here are some fundraising highlights of events which our amazing supporters organised throughout 2022/23.
## _**Livingstone Tractor Run**_
The Livingstone Christmas Tractor Run returned for the first time since the COVID-19 pandemic and took place on Saturday, December 31, 2022. 754 tractors participated in the 2022 run, making it the biggest one to date. In total, an incredible £153,415 was raised from the event and between the Southern Area Hospice, NI Children’s Hospice and NI Air Ambulance with Northern Ireland Children’s Hospice receiving £51,138.40. The Livingstone family said: “This was a great year, and we are delighted to raise this amount this year with the fantastic support of Ben Sergeant, local businesses and the public.”
23
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Fundraising (cont’d) Fundraising in the community (cont’d)**
## _**Madison Wright’s Gala Ball**_
Our 16-year-old Youth Ambassador, Madison Wright swapped the classroom for the ballroom and hosted a black-tie gala ball to mark 21 years of the Northern Ireland Children’s Hospice in the Titanic Hotel, Belfast. The kind-hearted teenager raised £38,000 to help support Northern Ireland Children’s Hospice and continues to fundraise extensively for Hospice.
## _**Bob & Berts**_
Our charity partners, Bob & Berts stepped up to the plate once again and continued to show their commitment to Northern Ireland Hospice by raising a phenomenal £22k for Northern Ireland Hospice. Staff across all Bob & Berts cafés organised a variety of fun-filled fundraising activities to raise muchneeded funds for Hospice and encouraged customers to make an optional £1 donation on every purchase. The continued support of Bob & Berts is helping us make a huge difference to local people and families who depend on our lifeline services.
## _**Danielle Short**_
Danielle Short, family and friends strutted their way to raising a 'fab-u-lous' £17K for the Children's Hospice by hosting a Strictly Come Dancing event in memory of her beloved son, Michael. The event was a huge success with hundreds of people attending the sold-out event at the Devenish on the night to support the Children’s Hospice.
## **Retail**
Northern Ireland Hospice has a thriving retail operation with 24 Hospice Shops located across Northern Ireland. Our fantastic retail staff and volunteers helped deliver a record-breaking £1.2m in sales and processed 600,000 sales transactions. This was only made possible thanks to the hard work, passion, and commitment of our staff and 532 volunteers who go above and beyond to help raise much-needed funds to support the continued delivery of our services.
We continued to expand and modernise our retail offering by refurbishing our Finaghy Hospice Shop to enable a greater shopping experience for both new and existing customers.
Keeping up-to-date with the ever-changing consumer shopping habits, we identified a demand for an economical yet high-quality, wedding dress shop. In 2022, we brought this innovative idea to life and opened a dedicated wedding shop in our Glengormley flagship store selling a range of exquisite wedding gowns and suits, alongside party dresses, bridesmaids dresses, mother-of-the-bride outfits, shoes and accessories.
Despite the challenges presented post-COVID, and the current cost of living crisis, our staff and volunteers remain agile and receptive to new ways of raising income. For example, we recently partnered with HARU, a local e-commerce company, helping us to sell high-quality and designer clothing items competitively on the marketplace.
24
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Volunteers**
Underpinning all of our work and our ability to provide specialist palliative care to local patients and their families, is our volunteers. We are incredibly grateful to have the support of over 700 committed and passionate volunteers working across the organisation, providing over 126,000 hours of their time to enhance the quality of care and support that Northern Ireland Hospice provides to those who need it. This amounts to over £1.2m of hours at current minimum wage and carries even greater value for the organisation.
Our volunteers donate their time in so many incredible ways across our organisation – from volunteering in our shops to offering support to patients and their families and helping in our hospice gardens and offices.
The impact of our volunteers cannot be understated. They make a significant contribution, both in time and cost savings, enabling us to be even more efficient and direct more funds to the provision of our vital care service.
To acknowledge the important contribution and long-standing service volunteers gave to Hospice in 2022, we hosted a special celebratory event for our Support Group volunteers and those working across our Adult and Children’s Hospice services. We are thankful to have so many wonderful and dedicated volunteers who have volunteered at Hospice for many years, some have even been with us from the start of Hospice services!
Volunteer recruitment remains a key priority for us as a charity as our volunteer numbers reduced dramatically throughout COVID-19. Whilst they have started to improve, we hope to build on this with a dedicated volunteer recruitment campaign throughout the summer months.
## **Corporate Services**
Throughout 2022/23 the Corporate Services teams continued to work on a hybrid basis, whilst ensuring compliance with best practice and all relevant regulations.
We have developed and implemented Business Continuity plans across all areas and streamlined internal work flows to enhance service delivery and performance. In order to reduce our carbon footprint we have enhanced our performance on emissons reporting. We have commenced a Digital Futures project in order to make effective use of digital technology critical for NI Hospice to deliver on our key objectives.
25
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## _**OUR PEOPLE**_
NI Hospice recognises that its people and their passion, commitment and dedication are key to its success in providing excellent care to our patients and support to their families across Northern Ireland.
As we recover from the impact of the COVID-19 pandemic, the continued development and wellbeing of our staff have remained our main priorities.
## **We will continue to:**
- Attract and retain key talent - we have successfully recruited our first IT higher level apprentice and nurse through sponsorship.
- Introduce channels for two-way engagement and feedback across the NI Hospice for management and staff of all levels.
- Implement wellbeing initiatives through our Wellbeing Strategy.
- Recognise our people and reward their performance and dedicated service.
- Develop our people professionally and personally in a supportive, diverse and inclusive environment where we can empower them to be their best.
- Strive to be an employer of choice.
Following on from last year's Best Companies survey, where we received a “one to watch” rating, we have listened to the feedback from our teams, and this has enabled us to empower our staff to share their feedback. We have been able to implement initiatives to promote engagement, two-way communication, and inclusion, to give our people a “voice” in the organisation and to nurture the feelings of being valued.
We want our people to perform to their best and in support of this we have adopted a more flexible approach, where possible, to enable the balance between work life and home life whilst meeting service needs.
## **We have introduced our Wellbeing Strategy where the focus has been on 4 key areas:**
- Mental health
- Physical health
- Financial wellbeing
- Social wellbeing
A series of Wellbeing Cafes were hosted to give staff the opportunity to give their feedback on their wellbeing and tell us what was important to them. This feedback has formed our three-year wellbeing action plan. A number of initiatives across all four pillars have already been introduced in which staff engaged, and feedback has been positive.
26
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## _**OUR FUTURE PLANS**_
In the context of the significant reductions in Health and Social Care budgets for 2023/24 and the ongoing cost of living crisis, the Board and Leadership Team are reviewing the strategy of the organization and it is expected that this will be completed in 2023/24.
Our focus continues to be on the delivery of excellent palliative care across Northern Ireland and we will continue to develop and shape services to be as effective and impactful as possible.
Work continues to raise the profile of our work in specialist palliative care, and to advocate for access to these services for all citizens in Northern Ireland, and for fair funding from government for this work. We work closely to support the Health Service in Northern Ireland, freeing up GP time and beds in hospital wards.
As the largest provider of children’s and adult’s specialist palliative care in Northern Ireland we will continue to work across all available networks to influence funding and improve delivery of palliative care services.
27
**Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023 Report of the Board of Trustees (continued)**
## _**FINANCIAL REVIEW**_
The consolidated financial statements comprise the results of Northern Ireland Hospice and Northern Ireland Hospice (Trading) Limited, together they are known as the ‘Group’.
Northern Ireland Hospice owns 100% of the issued share capital of Northern Ireland Hospice (Trading) Limited, the results of which have been consolidated with the financial statements of Hospice on the basis of net profit before taxation.
The Consolidated Statement of Financial Activities for the financial year ended 31 March 2023 and the Consolidated Balance Sheet at that date are set out on pages 53 and 55, respectively. The net movement in funds for the financial year, after depreciation and other recognised gains and losses, amounted to a £3m income (2021/22: net expenditure £0.1m).This arises due to a net expenditure of £1.9m offset by gains on the pension scheme valuation of £5.2m and losses on investments of £0.3m. Work continues to address the underlying net deficit.
## **Income**
The main sources of income are from donations and legacies and from statutory grants. Overall, Group Income has increased by 10.6% from £16.5m in 2021/22 to £18.2m in 2022/23, mainly due to a £1.6m increase in Legacies.
||**2023**|**2022**|Change|
|---|---|---|---|
|**Group Income**|**£’000**|**£'000**|£'000|
|Donations and legacies|7,990|6,095|1,895|
|Charitable activities|6,790|6,398|392|
|Other trading activities - retail shops|3,269|2,839|430|
|Investment and other income|166|1,139|(973)|
|**Total Group Income**|**18,215**|**16,471**|**1,744**|
|Less: Charitable Activities – COVID funding|-|(224)|224|
|**Total Group Income excluding COVID funding**|**18,215**|**16,247**|**1,968**|
28
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
**Report of the Board of Trustees** (continued)
## **FINANCIAL REVIEW (Continued)**
**----- Start of picture text -----**
Total Income by Type
20,000
18,215
18,000
16,472
16,000
14,000
12,000
10,000
7,990
8,000 6,790
6,095 6,399
6,000
3,269
4,000 2,839
2,000 1,140
166
-
Donations and Charitable activities Other trading Investment and Total Income
legacies activities - retail other income
shops
2022/23 2021/22
£'000
**----- End of picture text -----**
## **Donations and legacies**
Income received from donations and legacies has increased by £1.9m or 31%, from £6.1m in 2021/22 to £8m in 2022/23. This is mainly a result of an increase in legacy income received from £1.3m in 2021/22 to £2.9m in 2022/23.
## **Charitable activities**
Income from charitable activities increased by £0.4m, from £6.4m in 2021/22 to £6.8m in 2022/23. The £0.4m related to the statutory contracts and equated to a 6% increase, reflecting contract uplifts on the previous year, combined with over performance against targets and funding for cost pressures in year. The remaining increase relates mainly to funding for specific projects including funding for the Department of Health special recognition payment to staff and education initiatives. As noted in challenges above, this Health Service funding, whilst increasing, is not at a sustainable level, and the absence of local decision making powers is impacting our ability to influence funding allocations.
## **Other trading activities - retail shops**
Hospice (Trading) retail shops were fully operational in 2022-23 versus only 11 months in the prior year, resulting in an increase in income of £0.4m, from £2.8m in 2021/22 to £3.2m in 2022/23.
29
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **FINANCIAL REVIEW (Continued)**
## **Investment and other income**
Other income decreased in the year from £1.1m in 2021/22 to £0.3m in 2022/23, a decrease of £0.8m. This was primarily driven by prior year profit on sale of property and pandemic related income. These were partially offset by additional income from investments in the year.
## **Expenditure**
Overall, Group Expenditure has increased by £1.8m or 9.7%, from £18.3m in 2021/22 to £20.1m in 2022/23.
|022/23.||
|---|---|
|**Group Expenditure**
Raising funds
Charitable activities
Expenditure before retail shops*
Other - retail shops|**2022/23**
**2021/22**
**Change**|
||**£’000**
**£'000**
**£'000**|
|||
||2,795
2,097
698|
||14,693
13,925
768|
||17,488
16,022
1,466|
||2,624
2,321
303|
|**Total Group Expenditure**|**20,112**
**18,343**
1,769|
|_Further analysed as follows:_
Pay costs
Operating costs
Depreciation|14,382
13,257
1,125
5,073
4,559
514
657
527
130
**20,112**
**18,343**
1,769|
|**Total Group Expenditure**||
_*Excludes the intercompany management charge of £142k (2021/22: £142k)_
It cost £20.1m in 2022/23 to operate Hospice, an increase of £1.8m or 9.6%. This is largely from increases in pay costs of £1.1m due to headcount and Agenda for Change pay rates. Operating costs have increased due to the one-off Elmer campaign in Fundraising and continued rise utilities. These are partially offset by a decrease in the current service cost of the pension scheme.
The cost to operate the retail shops increased by £303k in 2022/23, primarily due to a £214k increase in pay costs.
The net expenditure for 2022/23 was £1.9m, in line with a net expenditure of £1.9m in 2021/22.
30
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **FINANCIAL REVIEW** (Continued)
The Trustees are concerned about the risks of increasing costs, impact of external factors, and how the statutory income has historically been structured which leads to an underlying deficit. Significant work to address these challenges and improve this position continues.
## **Total Expenditure by Type**
**----- Start of picture text -----**
25,000
20,112
20,000
18,344
14,693
15,000 13,927
10,000
5,000
2,795 2,096 2,624 2,321
-
Raising funds Charitable activities Other - retail shops Total Expenditure
Axis Title
2022/23 2021/22
£'000
**----- End of picture text -----**
## **Balance Sheet**
|The Group Balance Sheet is presented in the table below.|**2022/23**|**2021/22**|**Change**|
|---|---|---|---|
||**£’000**|**£'000**|£'000|
|Fixed assets|21,407|23,158|(1,751)|
|Net current assets|2,401|2,290|111|
|Non-current assets/(liabilities)|1,979|(2,658)|4,637|
|**Total**|**25,787**|**22,790**|2,997|
|Restricted funds|338|482|(144)|
|Unrestricted funds|25,449|22,308|3,141|
|**Total**|**25,787**|**22,790**|2,997|
31
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **FINANCIAL REVIEW (Continued)**
## **Fixed assets**
Tangible fixed assets have decreased by £317k in the year. Additions of £340k offset with depreciation of £657k. Investments have decreased by £1.46m to £6m primarily due to draw downs to facilitate cashflow. Intangible assets of £58k relate to website development work.
## **Net current assets** ance
Net current assets have increased by £111k in the year. The main drivers of this increase are as follows:
- Increase in legacies of £1.1m due to a large notification in March 23
- Decrease in trade debtors of £277k relating to statutory funding
- Increase in prepayments and accrued income £292k
- Decrease in cash of £1m.
## **Non-current assets/liabilities**
Non-current liabilities relating to the NILGOSC pension scheme (£2.658m FY21-22) have become an asset of £1.979m in current year due to changes in actuarial financial assumptions.
## **Reserves Policy**
The Board of Trustees recognises the requirement for reserves and aims to have a level of free reserves equivalent to three months’ future running costs. At 31 March 2023, Hospice has free reserves of £10m, which covers 6 months of our planned operating expenditure going forward. These reserves help to ensure that the finances of the hospice remain in a sustainable position.
Our reserve position is heavily impacted by our high asset base which includes specialist hospice properties which the Board have no intention of selling. The trustees monitor our reserves position and the cash in bank balances on a regular basis to ensure there is no immediate risk to the Hospice.
## **Investment Policy**
Investments are usually made in short term bank deposits in conjunction with cash flow requirements for the organisation. These deposits are placed only with reputable institutions.
During the year, Hospice invested in a portfolio investment with our investment advisors Close Brothers, who have been instructed to maximise the return on the funds invested within the constraints of a medium risk portfolio.
The investment position of the organisation is reviewed by the Finance Sub-Committee on an ongoing basis throughout the year. Close Brothers report annually to the Board on the performance of the portfolio.
32
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **FINANCIAL REVIEW (Continued)**
## **Going Concern**
The financial statements have been prepared on the going concern basis.
The trustees have reviewed Hospice’s financial position and consequently believe there are sufficient resources to manage any operational or financial risks. The Board considers there is a reasonable expectation that Hospice has adequate resources to continue in operational existence for at least 12 months from the date of signing of the accounts and the Board are unaware of any additional material uncertainties related to events or conditions that may case significant doubt upon Hospice’s ability to continue as a going concern.
## _Risks and Uncertainties_
Due to the historic structure of statutory income and the pressure of increasing costs, the group has been incurring an underlying deficit. Exacerbated by current economic and other external factors, including the ongoing impact of the COVID-19 pandemic on costs and ways of working, Trustees are concerned about the underlying deficit risks and significant work to address these challenges and improve this position continues.
The trustees have taken into consideration the existing and anticipated effects of these risks and uncertainties on the organisation’s activities and finances in its assessment of the appropriateness of the use of the going concern basis. We continue to adapt our fundraising plan to take account of the changing landscape and are reviewing our strategy and related plans to deliver the best outcomes possible within the available resources. Management continue to carefully monitor the situation and evaluate its options during this time. No adjustments have been made to these financial statements as a result of this uncertainty.
The Board therefore considers there is a reasonable expectation that Hospice has adequate resources to continue in operational existence. The Board is aware that should circumstances change service levels will have to be revised in line with the income available.
## **Post Balance Sheet Events**
There have been no significant events affecting Hospice since the financial year end that would result in the adjustment of the financial statements or inclusion of a note therein.
33
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Report of the Board of Trustees (continued)**
## _**PRINCIPAL RISKS AND UNCERTAINTIES**_
The Board of Trustees and Corporate Leadership and Management Team, through the corporate governance framework, identify and manage the risks to which the charity is exposed. Our Board and Corporate Leadership and Management Team have assiduously monitored the activity of the organisation both in terms of service delivery and quality as well as financial reporting. We are satisfied that our continued vision for the people we support to provide comfort and quality of life for our patients, whilst supporting their families and relieving fear and suffering associated with loss. Our work, which is based on the values of the respect and acceptance, compassion, courage, and integrity, and being pioneering, professional and accountable, is very much in evidence from our activities during the financial year.
The Board established our risk appetite. This identifies potential risk events that may affect the charity and seeks to manage those risks. It also seeks to provide reasonable assurance regarding the achievement of our strategic objectives.
It is the role of Trustees, the Corporate Leadership and Management Team to assess the risk and define our operational objectives, assigning responsibility throughout the organisation to each manager and employee responsible for the appropriate management of risk.
Directors and senior staff are accountable for strategic risk management within areas under their control including the devolution of the risk management process to operational managers. Senior staff are accountable to the Chief Executive for implementation, annual reporting on the status of the Risk Register, on-going maintenance of the Risk Register and ensuring compliance with risk assessment procedures. The Chief Executive is responsible for maintaining the Risk Register and for reviewing it bi-annually including proposing any changes to the Board for approval.
Risk Management is a standing agenda item for all Board meetings. A comprehensive planning process, together with established systems and procedures, enables trustees to assess and address risks associated with governance, strategy, clinical, health and safety, reputation, finance, operations, other external factors, and the future capacity to deliver services. These systems have also enabled the charity to adjust to serious and significant events such as our ability to consider the effect of Covid-19 and our ability to continue to provide a primary service during extreme circumstances.
## **Operational Risks**
Operational risk is the risk of loss resulting from inadequate or failed internal processes, systems, or human factors. Operational risk can manifest itself in various ways including shortage of key skills, clinical incidents, inappropriate behaviour of employees, failure to comply with applicable laws and regulations or failure to perform in line with contractual arrangements. These events could result in financial losses, litigation, and regulatory fines as well as other damage to the organisation.
34
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
The principal operational risks identified by Northern Ireland Hospice and the mitigating actions are noted below:
|oted below:||
|---|---|
|**Operational**
**Risk**|**Mitigating Actions**|
|**Staffing**|
Regular focused engagement with the Department of Health on regional
workforce planning and recruitment.
3-year work force planning in development with greater focus on succession
planning.
Future medical workforce planning reflects a hybrid model of trainee and non-
trainee posts, reducing dependency on locums whilst retaining the Hospice status
as a training centre.|
|**Finance**|
Finance sub-committee established with particular focus on budget and
control
Regular management updates on budgetary position. Contingency planning
scenarios developed with a focus on financing.
Fundraising communications focused on online events, moving away from
traditional fundraising activities.
Ongoing discussions with SPPG and Department on financial and material support
through government grants
Ongoing planningof strategic income initiatives|
|**Technology**| Development of Cyber Essentials to provide assurance on Hospice IT Security and
compliance of standards.
UPS configuration upgraded in main server room (Horizon) to include all IT
infrastructure, phones and switches. Key software servers also upgraded.
Engagement with staff on cyber risks has increased with improved vigilance.
Telephone system development|
|**Clinical**
**Incidents**| Policies and procedures in place to prevent incidents as well as management of
incidents and implementation of learning.
Bi-monthly reporting of incidents to Board as well as ability to report serious
incidents immediately if required.
Risk and Dashboards monitored by clinical teams and Governance Committee.
Incident reporting software now embedded
Adherence to regulatoryrequirements(RQIA and CharityCommission).|
35
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
The principal operational risks identified by Northern Ireland Hospice and the mitigating actions are continued below:
|ntinued below:||
|---|---|
|**Governance**
**and Hospice**
**Reputation**| Effective policies and procedures put in place to ensure compliance with health
and safety and other regulatory requirements.
Corporate Quality Governance Committee established with Board oversight.
Review of risk register process with established format and presentation of
Strategic Corporate Risk Register. Engagement with external regulatory bodies
around service delivery and performance (e.g., NIPSO, RQIA, Fundraising
regulator, Charities Commission).
Achievement of ISO Standards 9001 and 45001 for Estates department Quality
Management and Safety Management activities including capital works,
maintenance and asset management.
Development and roll-out of risk management software ongoing.|
|**Data**
**Analysis &**
**Management**| Review of systems available to ensure data managed effectively and to improve
report functionality.
Consideration of internal Quality Improvement Programme to regularly review
data accuracy and systems for ensuring that the data is SMART.
Independent assessment of data including analysis of statistical information.
QualityIndices reports completion and review.|
|**COVID 19**
**Pandemic**
(risk
downgraded
post year,
but still being
monitored)|The NIH Board and senior management have taken steps to ensure that the risks
faced by Covid-19 have been mitigated, as far as possible. These steps have
included:
Constant review and update of position regarding adult services, children’s and
community activity including assessment of financial position and impact of Covid
on budget
Liaison with Departmental authorities on procedures to be followed
Scenario plans established to ensure contingency for multiple options
Staff encouraged to work from home where possible and supported with
IT
Restrictions imposed for visitingthe office|
36
**Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Report of the Board of Trustees (continued)**
## _**STRUCTURE, MANAGEMENT AND GOVERNANCE**_
## **Board Members and Structure**
As trustees of a charitable company, all trustees are the company directors. Trustees are from diverse backgrounds in health, business, and professional life. This ensures a broad range of experience and skills are brought to Board deliberations.
A minimum of eight to a maximum of fourteen trustees can be on the Board. Six members of the Board are elected from and by the members of the charitable company. Up to six trustees are invited by the Board. The Board has the option to co-opt up to a further two trustees. Both ‘elected’ and ‘invited’ trustees may serve for a maximum of two terms of four years each, following which, they must stand down for a minimum of two years.
The office bearers of Chair, Vice-Chair and Treasurer are chosen from within the Board. The office bearers can remain in office for up to three years and this can be extended for a further three years.
Induction is provided to new trustees and training is provided as required in areas such as risk, safeguarding, child protection, and other relevant charity governance matters. Trustees adhere to a Code of Conduct and a Declaration of Interests is completed annually.
Trustees are not in receipt of any remuneration for their services to Hospice but are reimbursed for any incidental expenses claimed. There were no expenses claimed in this financial period.
The Board is responsible for the strategic direction and governance of Hospice. The Board’s principal responsibilities include determining the overall strategy, policies, direction and goals of Hospice; protecting and promoting the identity and values of Hospice; and fulfilling their statutory responsibilities.
A scheme of delegation is in place and the Board delegates the day-to-day operation of the organisation to the Chief Executive Officer (CEO) supported by the Director of Care and Quality Governance, the Director of Corporate Services, the Director of Finance and the Director of Commercial and Brand Development. Together they form the membership of the Corporate Leadership Team. The Corporate Leadership Team and the medical lead(s) attend Board meetings but have no voting rights.
There are clear distinctions between the role of the Board and the Corporate Leadership Team. The Corporate Leadership Team is responsible for preparing policy, strategic planning, budgets, financial reports, and risk registers, which are approved by the Board. The Corporate Leadership Team implements the policy, plans, budgets and leads all operational aspects of the charity with the Board continually monitoring these.
The Corporate Leadership and Management Team, comprising of the Corporate Leadership Team and Department Heads, works collectively to lead and manage the various functions of Hospice with an emphasis on effective engagement, working in partnership, and valuing the contribution of all of our people in a supportive **environment** .
37
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **STRUCTURE, MANAGEMENT AND GOVERNANCE (continued)**
The Board is supported by Sub-Committees, in the areas of Finance, Nominations and Board Governance, Remuneration, IT Governance, and Corporate Quality Governance.
## **NORTHERN IRELAND HOSPICE BOARD GOVERNANCE STRUCTURE**
||||**Board of Trustees and Company Directors:**|**Board of Trustees and Company Directors:**|**Board of Trustees and Company Directors:**|**Board of Trustees and Company Directors:**|
|---|---|---|---|---|---|---|
||||**Chair- Dr Gerry Millar, Elected Trustee**||||
|**Garth Calow, Elected Trustee (Treasurer)**
**Dr Russell Houston, Elected Trustee**
**Ian Sheppard, Elected Trustee**
**Martin Murphy, Elected Trustee**
**Joanne Ramsay, Elected Trustee**||||**Andrew Talbot, Invited Trustee**
**Alan Dickson, Invited Trustee**
**Janice Smyth, Invited Trustee**
**Adele Martin, Invited Trustee**
**Paddy O’Hagan, Invited Trustee**|||
|**Finance Committee:**
**Chair – Garth Calow**|**Board Governance &**
**Nominations**
**Committee:**
**Chair – Dr Gerry Millar**|**Remuneration**
**Committee:**
**Chair – Dr Gerry Millar**||**Corporate Quality**
**Governance**
**Committee:**
**Co-Chairs – Dr Russell**
**Houston & Heather**
**Weir**|**IT & Digital Governance**
**Committee:**
**Chair – Paddy O’Hagan**|**People &**
**CultureCommittee:**
**Chair – Adele Martin**|
|**Trustee Membership**|**Trustee Membership**|**Trustee Membership**||**Trustee Membership**|**Trustee/Independent**
**Advisor Membership**|**Trustee Membership**|
|**Dr Gerry Millar**–
Chairman & Elected
Trustee
**Garth Calow**–
Treasurer (Chair or
Committee) & Elected
Trustee
**Alan Dickson**– Invited
Trustee
**Martin Murphy**–
ElectedTrustee|**Dr Gerry Millar**–
Chairman & Elected
Trustee
**Andrew Talbot**– Invited
Trustee
**Joanne Ramsay**– Elected
Trustee|**Dr Gerry Millar**–
Chairman & Elected
Trustee
**Garth Calow**– Treasurer &
Elected Trustee
**Janice Smyth**– Invited
Trustee||**Dr Russell Houston**– Co-
Chair & Elected Trustee|**Paddy O’Hagan**– Invited
Trustee
**Johnny Graham**–
Independent Advisor
**Dave Vincent**–
Independent Advisor|**Adele Martin**– Invited
Trustee
**Janice Smyth**– Invited
Trustee
**Helen Lockhart**–
Independent Advisor|
|**Staff In attendance:**|**Staff In attendance:**|**Staff In attendance:**||**Staff In attendance:**|**Staff In attendance:**|**Staff In attendance:**|
|Chief Executive Officer
Finance Director
Director of Corporate Services
Director of Commercial &
Brand Development
Director of Care & Quality
Governance|Chief Executive Officer
Director of Corporate Services|Chief Executive Officer
Director of Corporate Services
Finance Director||Chief Executive Officer
Director of Care & Quality
Governance
Director of Corporate Services
Finance Director
Director of Commercial & Brand
Development
Head of Adult Services
Head of Children’s Services
Head of Governance, Risk &
Performance Management
Head of Estates|Director of Corporate Services
Director of Commercial & Brand
Development
Finance Director
Head of People & Organisational
Development
Head of Adult Services
Head of Children’s Services
Head of Commercial Marketing &
Support
Head of Governance, Risk &
Performance Management
Head of Transformation & ICT
Head of Corporate Communications
Executive Office Manager|Head of People & Organisational
Development
Head of Corporate
Communications|
38
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Finance Sub-Committee**
The Finance Sub-Committee (FSC) is responsible, on behalf of the Board for ensuring that all the finances of Hospice are appropriately applied in securing the objects and strategic objectives of the charity and that its assets are properly safeguarded.
The Committee meets at least seven times a year or as required and is made up of at least two trustees with relevant financial experience. The Chair of the Committee is also the Treasurer and reports to the Board at the subsequent Board meeting.
The FSC operates under a Terms of Reference and assists the Board in their responsibility for:
- Reviewing financial strategies and policies.
- Ensuring adequate income is available to deliver the organisation’s objectives.
- Ensuring adequate financial and management controls are in place.
- Monitoring the finance risk register and the arrangements for managing financial risk.
- Ensuring the Annual Report and Consolidated Financial Statements are prepared in line with all relevant requirements, guidelines, and agreeing the choice of key accounting policies and principles and advising the Board on whether the annual report is fair, balanced, and understandable and provides the information necessary for users to assess the company’s performance, business model and strategy.
- Managing Hospice’s relationship with the external auditors (including monitoring and reviewing the external auditor’s independence, objectivity, and effectiveness annually).
- Reviewing the recommendations contained within audit reports and ensuring an appropriate implementation process is in place.
## **Nomination and Board Governance Committee**
The Nomination and Board Governance Committee (NBGC) is responsible for ensuring the appropriate composition of the Board of Trustees and that appropriate governance procedures are in place in Hospice. The Committee keeps under review a skills matrix and a succession timetable for Trustees plus a succession process for the Corporate Leadership Team roles. The Committee meets at least twice a year. The NBGC operates under a Terms of Reference and assists the Board in their responsibility for:
- Reviewing the structure, size and composition of the Board and its sub-committees and recommending necessary changes to the Board.
- Reviewing the skills, knowledge and experience on the Board and identifying gaps to be filled.
- Nominating potential candidates and overseeing selection of new appointments
- Ensuring adequate balances of skills, knowledge experience and diversity on the Board.
- Reviewing appointment procedures and documentation and making any relevant recommendations.
- Ensuring trustees are eligible to act under company law and ensuring Trustees complete appropriate paperwork (including ‘Fit and Proper Persons Declaration’ and ‘Declaration of Interests’).
39
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023 Nomination and Board Governance Committee (continued)**
- Ensuring the effectiveness of governance arrangements and compliance with charity and company law
- Ensuring the trustees receive suitable training on governance, and that safeguards and confirmations are in place in respect of conflicts of interest and eligibility of candidates to act as trustees.
- Developing and recommending to the Board, the governance principles that apply to the Hospice, having regard to the Articles of Association and changes to applicable laws and regulation, as appropriate.
- Reviewing the major Board governance risks on a regular basis.
- Reviewing the selection and succession planning process for the appointment of trustees.
- Recommending to the Board on a timely basis the succession plan for the positions of Chair of the Board and the CEO of Hospice.
- Ensuring the Board’s decision-making is not dominated by any one individual or small group of individuals that is detrimental to the interest of Hospice as a whole.
- Reviewing and assessing on an annual basis the adequacy of the Hospice’s corporate governance arrangements and recommending any changes to the Board.
- Reviewing and managing the process by which an evaluation of the Board and its sub- committees is conducted. At a minimum a self-assessment should be performed every two years.
- Conducting an annual appraisal of the Chair of the Board.
Reviewing governance disclosures within the Annual Report and Consolidated Financial Statements.
## **Corporate Quality Governance Committee**
Corporate Quality Governance Committee (CQGC) is responsible, on behalf of the Board for ensuring all functions in the Charity are compliant with legislation and regulations. The committee focuses on ensuring a culture of quality improvement and learning in the Charity, providing assurance, and escalating risks to quality when necessary to the Board, Regulatory Bodies and Commissioners. The Committee meets at least four times a year and produces an annual quality governance report.
## **People and Culture Committee**
The People & Culture Committee is responsible on behalf of the Board to ensure the culture, values and employee experience are upheld with a focus on health, wellbeing, and personal growth. The Committee will meet four times a year and additionally as may be necessary to ensure the effective implementation of agreed deliverables. The Committee shall consist of not less than two trustees appointed by the Board. This can include the Chairperson.
40
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **People and Culture Committee (continued)**
The People & Culture Committee operates under a Terms of Reference and assists the Board in their responsibility for:
- Ensuring there is a systematic approach to assessing and addressing culture, engagement, relationships and behaviours across the Hospice.
- Overseeing the development of a consistent culture where people feel safe and able to raise concerns and have them addressed.
- Ensuring the Hospice’s values and associated behaviours are being practiced throughout the organisation and where issues are identified, there are suitable action plans in place.
- Ensuring the Hospice’s activities are systematically and effectively promoting health, wellbeing and psychological safety.
- Shaping, approving and driving improvements through effective programme management arising from feedback from employee surveys, focus groups, exit interviews, employee forums and any other sources deemed appropriate.
- Determining the KPIs that will inform the priorities and progress for both the Committee and the Board.
- Receiving at least annually an assessment of the Hospice Culture with input from a range of sources (both internal and external)
- Overseeing the effective programme management in place to drive the definition and execution of the key projects
- Agreeing relevant sections of the annual report on all culture and employee engagement matters within the scope of the TOR ensuring they are accurately reflected.
- Approving a statement in the annual report about the culture and employee engagement in the Hospice.
## **Remuneration Committee**
The Remuneration Committee (RemCo) is responsible, on behalf of the Board for ensuring that there are adequate processes and policies in place to determine executive remuneration, reward and performance management, which are in line with the Powers outlined in the Articles of Association of Hospice. The Committee meets at least once a year. RemCo operates under a Terms of Reference and assists the Board in their responsibility for:
- Reviewing and approving the level of remuneration and payments to be made in relation to salary, pensions or superannuation schemes for the CEO and the Corporate Leadership Team (informed through benchmarking).
- Reviewing and approving the processes of appraisal for the CEO and the Corporate Leadership Team.
- Agreeing appropriate pay scales and other terms of remuneration for all employees in relation to cost of living increases, pensions or superannuation schemes.
- Agreeing the relevant sections of the annual report in relation to remuneration and expenses ensuring that they meet best practice requirements.
- Providing assurance to the Board that appropriate processes are in place to determine executive remuneration, reward and performance management are appropriate.
- Considering the implications of how the Committee’s work contributes to Hospice’s ability to fulfil its duties under the Equality Act and other relevant legislation.
41
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **IT and Digital Governance Committee**
The IT and Digital Governance Committee formally commenced in January 2021. The Committee is responsible for reviewing the IT and Digital Services that currently operate within the organisation and for making recommendations to the Board on changes and improvements that meet the needs of Hospice now and in the future. The Committee meets at least four times a year. The IT and Digital Governance Committee operates under a Terms of Reference and assists the Board in their responsibility for:
- Reviewing the IT and Digital Transformation Strategy for the organisation, ensuring it is at all times fit for purpose and that the associated outcomes meet the needs of the organisation.
- Satisfy itself that appropriate cost-effective budgets are in place to deliver required IT activity as authorized by the Board.
- Reviewing information security protocols.
- Reviewing contingency planning and fallback procedures to ensure these are fit for purpose and provide appropriate continuity for the organisation.
- Ensuring that all expenditure is properly applied in the interests of Hospice and that the organisation obtains value for money in IT spend.
- Reviewing and managing risk associated with IT operations and delivery of new initiatives and to provide assurance to the Board as appropriate.
- Developing and producing an agreed reporting structure that describes IT activity and performance.
42
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Board and Committee attendance**
The Board and the Board Sub-Committees met on several occasions in 2022/23. Attendance by each board member at these meetings is set out in the table below. Attendance is shown for each Trustee out of the number of meetings held during each Trustee’s tenure.
**----- Start of picture text -----**
Name Board FSC N&BG RemCo CQGC ITGov Culture
&
People
David Clements
(Chair until Nov 22) 4/4 4/4 2/2 1/1
Dr Gerry Millar
(Vice Chair until 6/6 2/3 2/2 1/1
Nov 22 then Chair)
Garth Calow
(Treasurer) 5/6 6/6 1/1
Ian Sheppard 5/6
Alan Dickson 5/6 4/6
Dr Russell Houston 6/6 3/4
Janice Smyth 4/6 1/1 3/4
Andrew Talbot 5/6 2/2
Adele Martin 3/6 4/4
Martin Murphy 6/6 5/6
Joanne Ramsay 5/6 1/2
Paddy O’Hagan 4/5 2/2
Steven Cockcroft 1/1
Johnny Graham
(Independent 2/3
advisor)
**----- End of picture text -----**
43
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Remuneration Policy**
Clinical staff remuneration is in line with Agenda for Change pay scales. Medical staff employed or engaged as consultants in Hospice are remunerated in line with National Consultant Terms and Conditions.
Non-clinical staff remuneration is set within a policy that is appropriate for each specific role. This allows Hospice to be externally competitive and internally fair in how it rewards its staff for nonclinical roles. The remuneration framework establishes an appropriate and relevant market-informed salary range for each role. This is in keeping with relevant industry benchmarks. It does however seek to promote development and encourage and reward excellence where performance is exceptional.
The Corporate Leadership Team remuneration is recommended to the Remuneration Board SubCommittee by the CEO. The CEO remuneration is reviewed by the Chair and recommended to the Remuneration Board Sub-Committee. The Committee considers a number of matters in arriving at its decisions, including performance and benchmarks with other health care charities and sectors.
Hospice operates an equal opportunities policy.
## **Regulatory Environment**
In addition to all legal requirements, Hospice operates in a regulatory environment, governed by the Regulation and Quality Improvement Authority (RQIA) and the Charity Commission for Northern Ireland. Hospice also voluntarily subscribes to the requirements of the Fundraising Regulator.
## **Subsidiaries**
## **Northern Ireland Hospice (Trading) Limited**
Hospice owns 100% of the issued share capital of Northern Ireland Hospice (Trading) Limited. The principal activity of Northern Ireland Hospice (Trading) Limited is the sale of donated goods and giftware. It operates a network of 24 retail shops in the local area and the Old Schoolhouse Cafe and generates income for Hospice services. The Trading Company donates qualifying charitable donations (covenanted donations) to Hospice under company gift aid rules.
In addition, gift aided donations made to the Trading Company are accounted for in the books of Hospice.
44
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Related Parties**
In addition to a register of interests held, declaration of conflicts of interest is a standing item on the agenda for all Hospice Board, and Board Sub-Committee meetings. There were no conflicts identified that required further action.
## **Ex-Gratia Payments**
There were two ex-gratia payments made during the financial year ended 31/3/2022 totaling £4,455 (2022/23 NIL). Both payments related to refunds to donors following transcription errors. In both cases consent was received from the Charity Commission for Northern Ireland (Orders 0285 and 0286).
## **PUBLIC BENEFIT**
In setting our objectives and planning our activities for the year, the trustees have considered the Charity Commission for Northern Ireland’s guidance on public benefit to ensure that the activities have helped to achieve the Charity’s purposes and provide a benefit to the beneficiaries.
45
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Directors’ Responsibilities in Relation to the Financial Statements**
Company law requires the Board of Trustees (the Board) to prepare financial statements for each year which give a true and fair view of the state of affairs of the Hospice, and of its profit and loss and cash flows for that year. In preparing those financial statements, the Board is required to:
- select suitable accounting policies and apply them consistently,
- make judgements and estimates that are reasonable and prudent,
- observe the methods and principles in the Charities SORP,
- State whether applicable accounting standards have been followed, subject to any material
- departures disclosed and explained in the accounts, and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the
- Hospice will continue in business.
The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Hospice and to enable it to confirm that the accounts comply with the Companies Act 2006. It is also responsible for safeguarding the assets of the Hospice and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
In the case of each of the persons who are trustees at the time the Trustee’s Report and Financial Statements are approved:
- there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group’s auditor is unaware, and
- the trustees, having made enquiries of fellow trustees and the Group’s auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take, as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Auditors**
The auditors, Finegan Gibson, has indicated its willingness to continue in office, and a resolution that the firm be re-appointed will be proposed at the Annual General Meeting.
Approved by the Board of Trustees on 7 September 2022 and signed on its behalf by:
Dr Gerry Millar (Chairman)
46
## **Independent Auditor’s Report**
## **Opinion**
We have audited the financial statements of the Group and Charitable Company for the year ended 31 March 2023 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows, and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102, the Financial Reporting Standard applicable in the UK and Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group and of the parent company’s affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis For Opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions Relating To Going Concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of these financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
**DIRECTORS**
**Finegan Gibson Ltd, Chartered Accountants & Registered Auditors Causeway Tower, 9 James Street South, Belfast BT2 8DN t: 028 9032 5822 www.fgibson.co.uk info@fgibson.co.uk @finegangibson** _**Registered to carry on audit work and regulated for a range of investment business activities by Chartered Accountants Ireland**_
**C A Dolan BSc FCA P B Dolan BSc FCA**
**Company Reg. No. NI 613810**
**47**
## **Independent Auditor’s Report (continued)**
## **Other Information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions On Other Matters Prescribed By The Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **Matters On Which We Are Required To Report By Exception**
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
**DIRECTORS C A Dolan BSc FCA P B Dolan BSc FCA Company Reg. No. NI 613810**
**Finegan Gibson Ltd, Chartered Accountants & Registered Auditors Causeway Tower, 9 James Street South, Belfast BT2 8DN t: 028 9032 5822 www.fgibson.co.uk info@fgibson.co.uk @finegangibson** _**Registered to carry on audit work and regulated for a range of investment business activities by Chartered Accountants Ireland**_
**48**
## **Independent Auditor’s Report (continued)**
## **Responsibilities Of Trustees**
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the Directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s Responsibilities For The Audit Of The Financial Statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
- the nature of the industry and sector, control environment and business performance including the design of the remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether management were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
- the matters discussed among the audit engagement team including significant component audit teams and relevant internal specialists, including tax and valuations specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. **DIRECTORS**
**DIRECTORS C A Dolan BSc FCA P B Dolan BSc FCA Company Reg. No. NI 613810**
**Finegan Gibson Ltd, Chartered Accountants & Registered Auditors Causeway Tower, 9 James Street South, Belfast BT2 8DN t: 028 9032 5822 www.fgibson.co.uk info@fgibson.co.uk @finegangibson**
_**Registered to carry on audit work and regulated for a range of investment business activities by Chartered Accountants Ireland**_
**49**
## **Independent Auditor’s Report (continued)**
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks in operation, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included ongoing compliance with the UK Companies Act and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental for their ability to operate or to avoid a material penalty.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
- Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
_**Registered to carry on audit work and regulated for a range of investment business activities by Chartered Accountants Ireland**_
**DIRECTORS C A Dolan BSc FCA P B Dolan BSc FCA Company Reg. No. NI 613810**
**Finegan Gibson Ltd, Chartered Accountants & Registered Auditors Causeway Tower, 9 James Street South, Belfast BT2 8DN t: 028 9032 5822 www.fgibson.co.uk info@fgibson.co.uk @finegangibson**
**50**
## **Independent Auditor’s Report (continued)**
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.
PAUL DOLAN FCA (Senior Statutory Auditor) Date:
For and on behalf of FINEGAN GIBSON LTD Chartered Accountants & Statutory Auditors Causeway Tower 9 James Street South Belfast BT2 8DN
**DIRECTORS**
**Finegan Gibson Ltd, Chartered Accountants & Registered Auditors Causeway Tower, 9 James Street South, Belfast BT2 8DN t: 028 9032 5822 www.fgibson.co.uk info@fgibson.co.uk @finegangibson** _**Registered to carry on audit work and regulated for a range of investment business activities by Chartered Accountants Ireland**_
**C A Dolan BSc FCA P B Dolan BSc FCA Company Reg. No. NI 613810 51**
## **Northern Ireland Hospice Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Company Statement of Financial Activities (Incl an Income and Expenditure Account) for Financial Year Ended 31 Mar 2023**
|||
|---|---|
||**2023**
**2023**
**2023**
**2022**
**2022**
**2022**|
|**_Notes_**
**Income from:**
Donations and legacies
_3_
Charitable activities
_4_
Investment and other income
_6_
**Total Income**
**Expenditure on:**
Raising funds
7
Charitable activities
7
**Total Expenditure**
**Net Income/ (Expenditure)**
**Other Recognised Gains and Losses**
Actuarial gain/(loss) on the market value of the
defined
benefits scheme's assets and liabilities
_19_
Other Unrealised Gains/(Losses)
_13_
**Net Movement in Funds**|**Restricted**
**Unrestricted**
**Total**
**Restricted**
**Unrestricted**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
745
7,907
8,652
570
6,145
**6,715**
-
6,790
6,790
_-_
6,399
**6,399**
-
308
308
-
1,074
**1,074**
**745**
**15,005**
**15,750**
**570**
**13,618**
**14,188**
-
2,813
2,813
-
2,114
**2,114**
889
13,937
14,826
645
13,408
**14,052**
**889**
**16,750**
**17,639**
**645**
**15,521**
**16,166**
**(75)**
**(1,904)**
**(1,978)**
**(144)**
**(1,745)**
**(1,889)**
-
5,151
5,151
-
1,866
**1,866**
-
(256)
(256)
-
(151)
**(151)**
**(144)**
**3,150**
**3,006**
**(75)**
**(188)**
**(263)**|
|**Reconciliation of Funds:**
Total funds brought forward
**Total funds carried forward**|**482**
**21,901**
**22,383**
**557**
**22,089**
**22,646**|
||**338**
**25,051**
**25,389**
**482**
**21,901**
**22,383**|
There are no other recognised gains or losses other than those listed above. All income and expenditure derive from continuing activities. The notes on pages 58 to 88 form part of these financial statement.
52
**Northern Ireland Hospice**
## **Notes to the Consolidated Financial Statements**
## **For The Financial Year Ended 31 March 2023**
## **Consolidated Statement of Financial Activities (Incl an Income and Expenditure Account) for Financial Year Ended 31 Mar 2023**
|**Consolidated Statement of Financial Activities (Incl an Income and Expenditure Account) for Financial Year Ended 31 Mar 2023**|**Consolidated Statement of Financial Activities (Incl an Income and Expenditure Account) for Financial Year Ended 31 Mar 2023**|
|---|---|
|||
||**2023**
**2023**
**2023**
**2022**
**2022**
**2022**|
|**_Notes_**
**Income from:**
Donations and legacies
_3_
Charitable activities*
_4_
Other trading activities
5
Investments and other income*
_6_
**Total Income**
**Expenditure on:**
Raising funds
7
Charitable activities
7
Other
7
**Total Expenditure**
**Net Income/ (Expenditure)**
**Other Recognised Gains and Losses**
Actuarial gain/(loss) on the market value of the
defined benefits scheme's assets and liabilities
_19_
Other unrealised gains/(losses)
_13_
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Restricted**
**Unrestricted**
**Total**
**Restricted**
**Unrestricted**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
745
7,245
7,990
570
5,525
**6,095**
-
6,790
6,790
_-_
6,398
**6,398**
-
3,269
3,269
-
2,839
**2,839**
-
166
166
-
1,139
**1,139**
**745**
**17,470**
**18,215**
**570**
**15,901**
**16,471**
-
2,795
2,795
-
2,097
**2,097**
889
13,804
14,693
645
13,280
**13,925**
-
2,624
2,624
-
2,321
**2,321**
**889**
**19,223**
**20,112**
**645**
**17,698**
**18,343**
**(75)**
**(1,797)**
**(1,872)**
**(144)**
**(1,753)**
**(1,897)**
-
5,151
5,151
-
1,866
**1,866**
-
(256)
(256)
-
(150)
**(150)**
**(144)**
**3,142**
**2,998**
**(75)**
**(81)**
**(156)**
**482**
**22,307**
**22,789**
**557**
**22,389**
**22,946**
**338**
**25,449**
**25,787**
**482**
**22,308**
**22,790**|
There are no other recognised gains or losses other than those listed above. All income and expenditure derives from continuing activities. The notes on pages 58 to 88 form part of these financial statements.
53
## **Northern Ireland Hospice**
## **Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Company Balance Sheet As At 31 March 2023**
|**mpany Balance Sheet As At 31 March 2023**||
|---|---|
|**_Notes_**
Intangible assets
_11_
Tangible assets
_12_
Investments
_13_
**Current Assets**
Stocks
_14_
Debtors
_15_
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
_16_
**Net Current Assets**
**Total Assets Less Current Liabilities**
**Creditors: Amounts falling due after more than**
**one year**
_16_
**Net assets excluding pension liability**
Defined benefit pensions asset /(liability)
_19_
**Net Assets**
**REPRESENTED BY:**
Restricted funds
_21_
Unrestricted funds
_21_
**Total Charity Funds**|**2023**
**2022**
**£'000**
**£'000**
58
27
14,734
15,041
6,280
7,745|
||**21,072**
**22,813**
37
37
3,372
2,815
492
852|
||**3,901**
**3,704**
(1,563)
(1,476)|
||**2,338**
**2,228**|
||**23,410**
**25,041**
-
-
**23,410**
**25,041**
1,979
(2,658)
**25,389**
**22,383**|
||338
482
25,051
21,901
**25,389**
**22,383**|
The notes on pages 58 to 88 form part of these financial statements.
The statutory financial statements were approved and authorised for issue by the Board of Trustees and signed on its behalf by:
Dr Gerry Millar (Chairperson) Date: 7/9/23
54
**Northern Ireland Hospice**
## **Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Consolidated Balance Sheet As At 31 March 2023**
|**_Notes_**
**Fixed Assets**
Intangible assets
_11_
Tangible assets
_12_
Investments
_13_
**Current Assets**
Stocks
14
Debtors
_15_
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
_16_
**Net Current Assets**
**Total Assets Less Current Liabilities**
**Creditors: Amounts falling due after more than**
**one year**
_16_
**Net assets excluding pension liability**
Defined benefit pensions asset/(liability)
_19_
**Net Assets**
**REPRESENTED BY:**
Restricted funds
_22_
Unrestricted funds
_22_
**Total Charity Funds**|**2023**
**2022**
**£'000**
**£'000**
58
27
15,369
15,686
5,980
7,445|
|---|---|
||**21,407**
**23,158**
89
72
3,185
2,018
754
1,739|
||**4,028**
**3,829**|
||(1,627)
(1,539)
**2,401**
**2,290**|
||**23,808**
**25,448**
-
-|
||**23,808**
**25,448**
1,979
(2,658)|
||**25,787**
**22,790**|
||338
482
25,449
22,308|
||**25,787**
**22,790**|
The notes on pages 58 to 88 form part of these financial statements.
The statutory financial statements were approved and authorised for issue by the Board of Trustees and signed on its behalf by:
Dr Gerry Millar (Chairperson) Date: 7/9/23
55
**Northern Ireland Hospice**
## **Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Company Statement of Cash Flows for the Financial Year Ended 31 March 2023**
|**_Notes_**
**Net cash provided by/(used in) operating activities**
17
**Cash flows from investing activities**
Proceeds from sale of fixed assets
12
Sale of investments (held for re-sale)
Sale of investments
13
Purchase of investments
13
Purchase of intangible fixed assets
11
Purchase of fixed assets
12
**Net cash flows from investing activities**
**Cash flows from financing activities**
Repayment of capital on bank loans
Gain/(loss) on pension scheme
19
Other gains/ (losses)
13
**Net cash flows from financing activities**
**Change in cash and cash equivalents in the**
**year**
**Cash and cash equivalents at beginning of financial**
**year**
**Cash and cash equivalents at end of**
**financial year**|**2023**
**2022**
**£'000**
**£'000**
**(6,451)**
**(2,575)**|
|---|---|
||-
_-_
-
450
1,589
-
(124)
(7,445)
(31)
(27)
(238)
(347)|
||**1,196**
**(7,369)**
-
-
5,151
1,866
(256)
(150)|
||**4,895**
**1,716**
**(360)**
**(8,228)**
852
9,080
**492**
**852**|
56
**Northern Ireland Hospice**
## **Trustees Report and Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **Consolidated Statement of Cashflows for the Financial Year Ended 31 March 2023**
|**_Notes_**
Net cash provided by/(used in) operating activities
_17_
**Cash flows from investing activities**
Proceeds from sale of fixed assets
_12_
Sale of investments (held for re-sale)
Sale of investments (held for re-sale)
_13_
Purchase of investments
_13_
Purchase of intangible fixed assets
_11_
Purchase of fixed assets
_12_
**Net cash flows from investing activities**
**Cash flows from financing activities**
Repayment of capital on bank loans
Gain/(loss) on pension scheme
_19_
Other gains/ (losses)
_13_
**Net cash flows from financing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at beginning of financial**
**year**
**Cash and cash equivalents at end of financial year**|**2023**
**2022**
**£'000**
**£'000**
**(6,974)**
**(3,263)**|
|---|---|
||_-_
_-_
-
450
1,589
-
(124)
(7,445)
(31)
(27)
(340)
(481)|
||**1,094**
**(7,503)**
-
(70)
5,151
1,866
(256)
(150)|
||**4,895**
**1,646**
**(985)**
**(9,120)**
**1,739**
**10,859**
**754**
**1,739**|
57
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **1. Accounting Policies**
## **General Information**
Northern Ireland Hospice is a company limited by guarantee not having a share capital and has its registered office at 18 O’Neill Road, Newtownabbey, BT36 6WB.
Northern Ireland Hospice ('Hospice') provides specialist palliative care service and support (including but not limited to physical, social, spiritual, and psychological support) in Northern Ireland at its in-patient hospice units, hospice outpatient clinics and in the community. The nature of the organisation’s operations and its principal activities are set out in the Trustees’ Report on pages 6 to 47.
The organisation is governed by its Articles of Association and provide for member-based organisation’s limited by guarantee. Hospice is a public benefit entity as defined by FRS 102.
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and the preceding year.
## **Basis of Preparation**
The financial statements have been prepared on the going concern basis and on an accrual basis, in accordance with the historical cost convention as modified by the revaluation of fixed asset investments and premises, and 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 (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements are presented in Pounds Sterling £.
## **Basis of Consolidation**
Hospice owns 100% of the issued share capital of Northern Ireland Hospice (Trading) Limited, the results of which have been consolidated with the financial statements of Hospice on the basis of net profit before taxation. Hospice also owns the entire issued share capital of Northern Ireland Hospice (Promotions) Limited which ceased activities in November 2001.
## **Going Concern**
The financial statements have been prepared on the going concern basis.
The trustees have reviewed Hospice’s financial position and consequently believe there are sufficient resources to manage any operational or financial risks. The Board considers there is a reasonable expectation that Hospice has adequate resources to continue in operational existence for at least 12 months from the date of signing of the accounts and the Board are unaware of any additional material uncertainties related to events or conditions that may cast significant doubt upon Hospice’s ability to continue as a going concern.
58
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **1. Accounting Policies (Continued)**
## **Going Concern (continued)**
## _Risk and Uncertainties_
Due to the historic structure of statutory income and the pressure of increasing costs, the group has been incurring an underlying deficit. Exacerbated by current economic and other external factors, including the ongoing impact of the COVID-19 pandemic on costs and ways of working, Trustees are concerned about the underlying deficit risks and significant work to address these challenges and improve this position continues.
The trustees have taken into consideration the existing and anticipated effects of these risks on the organisation’s activities and finances in its assessment of the appropriateness of the use of the going concern basis. We continue to adapt our fundraising plan to take account of the changing landscape, and are reviewing our strategy and related plans to deliver the best outcomes possible within the available resources. Management continue to carefully monitor the situation and evaluate its options during this time. No adjustments have been made to these financial statements as a result of this uncertainty.
## **Income Recognition**
Income is recognised in the Statement of Financial Activities in accordance with SORP which is based on three criteria being met, which are entitlement, measurement, and probability. The following specific policies are applied to particular categories of income:
- (i) Donation income received by way of grants, donations and gifts is included in full in the Statement of Financial Activities when receivable.
- (ii) Donation income from major events is recognised in the period in which the event takes place. Income received in advance is included in deferred income.
- (iii)Legacy income is recognised when it is probable that it will be received. Pecuniary legacies are recognised when probate is granted. Residuary legacies are recognised when either probate has been granted, the estate accounts have been approved and any conditions have been fulfilled or if notification from executors has been receive of their intention to make a distribution.
- (iv) Gifts in kind are valued at their realised amount, or the amount equivalent to an alternative commercial supply and are included in the Statement of Financial Activities when sold. In accordance with Charities SORP, volunteer time is not recognised in the financial statements.
- (v) Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
- (vi) Income from investments is included in the year in which it is receivable, and the amount can be measured reliably.
- (vii) Education income is recognised in the period in which the education programme is delivered.
- (viii) Statutory Grants received and receivable from the Trusts is accounted for on the basis of the allocated amount notified for that financial year.
- (iv) Income from all other sources is recognised when received.
59
**Northern Ireland Hospice**
**Notes to the Consolidated Financial Statements**
**For The Financial Year Ended 31 March 2023**
## **1. Accounting Policies (Continued)**
## **Expenditure (continued)**
Expenditure is recognised when there is a legal or constructive obligation to make a payment to a third party, it is 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 allocated to the appropriate heading in the financial statements. Irrecoverable VAT is charged as a cost against the related activity.
Direct costs are those costs incurred specifically on the core services provided by Hospice in accordance with its objects. Support costs are those costs, which are incurred centrally in support of expenditure on the objects of Hospice. The following specific policies are applied to particular categories of expenditure:
(i) Fundraising costs are costs incurred in generating the voluntary income of the Hospice, and as such include the costs of producing advertising and publicity materials, the direct costs of fundraising events and postal appeals as well as salary costs, commercial trading expenditure and an appropriate allocation of support costs.
(ii) Expenditure on charitable activities includes the costs incurred in undertaking the various activities which are performed for the benefit of Hospice's beneficiaries including support costs and costs relating to the charity apportioned to charitable activities.
(iii) Governance costs are costs relating to the infrastructure and general running of Hospice as opposed to direct management functions. These costs include audit and professional fees and costs associated with constitutional and statutory requirements. These costs are allocated across the costs of generating funds and charitable activities.
(iv) Other expenditure represents items not falling under the above headings such as loan interest costs. These costs are allocated across the costs of generating funds and charitable activities.
(v) Rental costs payable under operating leases are charged on a straight-line basis over the lease term to the Statement of Financial Activities.
## Allocation of Support Costs
Support costs are those functions that assist the work of Hospice but do not directly undertake charitable activities. Support costs include corporate services costs, estates, finance, personnel, payroll and governance costs which support Hospice's programmes and activities. The basis on which support costs have been allocated is set out in note 7.
60
**Northern Ireland Hospice**
**Notes to the Consolidated Financial Statements**
## **For The Financial Year Ended 31 March 2023**
## **1. Accounting Policies (Continued)**
## **Funds of the Charity**
All transactions of Hospice have been recorded and reported as income into or expenditure from funds of the charity which are classified as ‘restricted’ or ‘unrestricted’. Restricted Funds
Income is restricted where by the donor or grant making institution has specified that it must be used for a particular purpose or where it has been raised for a particular purpose. Expenditure is treated as being made out of restricted funds to the extent that it meets the criteria specified by the donor or grant making institution.
Unrestricted Funds
All other income is treated as unrestricted. Unrestricted funds represent amounts which are expendable at the discretion of the Board of Trustees in furtherance of the objectives of Hospice.
## **Foreign Currency**
The functional currency of Hospice is considered to be Pounds Sterling (£) because that is the currency of the primary economic environment in which the company operates.
Transactions in foreign currency are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities.
## **Tangible Fixed Assets**
Tangible fixed assets are stated at cost or valuation, net of depreciation and any allowance for impairment. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its estimated useful life, as follows:
|Property|2% - 4%|
|---|---|
|Furniture and equipment|5 years|
|IT equipment|over 3 years|
|Motor vehicles|5 years|
Individual fixed assets, usually costing £5,000 or more with a working life of more than 1 year, are capitalised at cost. Freehold land is not depreciated.
## _Carrying value of land and buildings_
Hospice freehold properties were professionally valued at 31 March 2012, other than the Somerton facility which was valued at 31 March 2018. All properties have been included in the Financial Statements on a depreciated replacement cost basis.
61
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **1. Accounting Policies (Continued)**
## **Impairment of Assets**
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Financial Activities as described below.
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced to below its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
## **Financial Instruments**
Hospice only holds basic financial instruments and has chosen to adopt Section 11 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial liabilities are classified according to the substance of the contractual arrangements entered into. All financial assets and liabilities are initially measured at transaction price (including transaction costs) unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets include debtors and cash at bank and in hand. Financial liabilities include creditors (excluding Social Security - NI costs).
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial assets expire or are settled, b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the company, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise the ability unilaterally and without needing to impose additional restrictions on the transfer.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled, or expires.
Balances that are classified as payable or receivable within one year on initial recognition are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
62
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For The Financial Year Ended 31 March 2023**
## **1. Accounting Policies (Continued)**
## **Taxation**
Hospice’s activities fall within the exemptions afforded by the provisions of the Income and Corporation Taxes Act 1988. Accordingly, there is no taxation charge in these accounts.
## **Legal Status of the Charity**
Northern Ireland Hospice is a registered charity and a company limited by guarantee. Each of the members of the company has guaranteed to contribute to the assets of the company, in the event of the same being wound up, to the extent of £5.
## **Investments**
Where investment properties are held, these will be professionally valued at the Balance Sheet date on an open market value basis. Impairment will be considered on an annual basis, with the resulting surplus or deficit arising being reflected in the Statement of Financial Activities.
Investments are stated at market value as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals during the year.
## **Stocks**
Stocks of bought in goods are stated at the lower of cost and net realisable value. As it is not practical to value items donated for resale on receipt because of the volume of low value items, they are not recognised in the financial statements until they are sold.
## **Cash and cash equivalents**
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
## **Employee benefits accrual**
A liability is recognised to the extent of any unused holiday pay entitlement, which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement and accrued at the Balance Sheet date.
63
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **1.Accounting Policies (Continued)**
## **Pensions**
Hospice operates three pension schemes (two defined benefit and one defined contribution) in respect of certain members of staff. The assets of the various pension schemes are administered separately from Hospice’s affairs.
## Defined Benefit Schemes
## _NILGOSC and DHSS_
For the defined benefit schemes, the amounts charged in expenditure are the current service costs, gains, and losses on settlements and curtailments. Past-service costs are recognised immediately in the income and expenditure account if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest losses are recognised in the ‘Other recognised gains and losses’.
The defined benefit schemes are funded, with the assets of the scheme held separately from those of Hospice, in Trustee-administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the scheme liabilities.
The actuarial valuations are obtained every three years and are updated at each balance sheet date. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance sheet.
## Defined Contribution Scheme
## _The Peoples' Pension_
For the defined contribution scheme, the amount charged to the Statement of Financial Activities in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.
64
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **2. Critical Accounting Judgements And Key Sources Of Estimation Uncertainty**
In the application of Hospice’s accounting policies, which are described in note 1, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future.
## **Critical judgements in applying Hospice's accounting policies**
The following are the critical judgements that the trustees have made in the process of applying the accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
- a) Legacy Income
Legacy income requires judgement about the probability of receipt, which affects the timing of income recognition. As at 31 March 2023, the amount accrued for legacy income was £1,624k.
- b) Cost allocation
- Support costs are allocated to charitable activities. Judgement is required in determining and applying the cost drivers appropriate for each support activity.
- c) Carrying Value of Debtors
- Hospice makes an estimate of the carrying value of all debtors, including Gift Aid receivable. Hospice uses estimates based on historical experience in determining the carrying value of debtors.
- d) Actuarial Assumptions
A qualified independent actuary has valued the NILGOSC defined-benefit pension scheme in accordance with FRS 102. Significant judgement is required in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appropriate discount rates.
65
**Northern Ireland Hospice**
## **Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **3. Donations And Legacies**
|**COMPANY**
**Donation income**
**Covenanted donations (note 23)**
**Legacies**
**GROUP**
**Donation income**
**Legacies**|**2023**
**2022**
**Restricted**
**Unrestricted**
**Total**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**745**
**4,318**
**5,063**
4,807
**-**
**662**
**662**
620
**-**
**2,927**
**2,927**
1,288|
|---|---|
||**745**
**7,907**
**8,652**
6,715|
||**2023**
**2022**
**Restricted**
**Unrestricted**
**Total**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**745**
**4,318**
**5,063**
4,807
**-**
**2,927**
**2,927**
1,288
**745**
**7,245**
**7,990**
6,095|
## **4. Charitable Activities**
Restricted Grant Income falls within the donation income category.
|**COMPANY AND GROUP**
**Statutory Funding**
**HSCB**
**HSCB SRP**
**SEHSCT**
**NHSCT**
**WHSCT**
**BHSCT**
**DHSS & PS**
**Medical SUMDE**
**Cancer Fund Community Grant**
**Covid Funding**
**Department of Health**
**WHSCT**
**Education Income***
**Total**|**2023**
**2022**
**Restricted**
**Unrestricted**
**Total**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**-**
**5,362**
**5,362**
4,740
**-**
**-**
**-**
144
**-**
**16**
**16**
15
**-**
**712**
**712**
634
**-**
**97**
**97**
147
**-**
**27**
**27**
56
**-**
**100**
**100**
100
**-**
**61**
**61**
32
**-**
**337**
**337**
84|
|---|---|
||**-**
**6,712**
**6,712**
**5,952**|
||**-**
**-**
**-**
224
**-**
**-**
**-**
-|
||**-**
-
**-**
224|
||**-**
78
78
222
**-**
**6,790**
**6,790**
**6,398**|
_***Education Income has been reclassified into 'Charitable Activities' in line with Hospice's Charitable Objects.**_
66
**Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **4. Charitable Activities (Continued)**
## **Covid Funding**
During the 2021/22 year Hospice received support funding from statutory bodies in order to help the charity cope with the impacts of the pandemic in this year and beyond. This included support for additional costs that were incurred as a result of the pandemic as well as mitigation of a range of anticipated income losses.
## **5. Other Trading Activities**
|**5. Other Trading Activities**|||||
|---|---|---|---|---|
||||**2023**|**2022**|
|**GROUP ONLY**|**Restricted**|**Unrestricted**|**Total**|**Total**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|**Retail sale of donated and purchased**|||||
|**goods**|**-**|**3,269**|**3,269**|2,839|
||**-**|**3,269**|**3,269**|2,839|
|**6. Investment And Other Income**|||||
||||**2023**|**2022**|
|**Company**|**Restricted**|**Unrestricted**|**Total**|**Total**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|**Investment Income**|**-**|**124**|**124**|100|
|**Management charge (note 22)**|**-**|**142**|**142**|143|
|**Covid - Furlough income**|**-**|**-**|**-**|28|
|**Other income**|**-**|**42**|**42**|803|
||**-**|**308**|**308**|1,074|
||||**2023**|**2022**|
|**GROUP**|**Restricted**|**Unrestricted**|**Total**|**Total**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|**Investment Income**|**-**|**124**|**124**|100|
|**Covid - Furlough income**|**-**|**-**|**-**|142|
|**Covid - LRSS grants**|**-**|**-**|**-**|94|
|**Other income**|**-**|**42**|**42**|803|
||**-**|**166**|**166**|1,139|
As part of its response to the COVID-19 pandemic the government introduced the Coronavirus Job Retention Scheme (Furlough Scheme). This allowed all UK employers with employees on a PAYE scheme to designate some or all of employees as 'furloughed workers' and receive government support for this – included above as Furlough income. This scheme closed during the 2021/22 year and there is therefore no income for the 2022/23 year. LRSS provides financial support to certain businesses which have been required to close or severely limit operations at their premises, this was granted to the Trading company due to the closure of the shops for part of the financial year and ended once the shops opened, early in the 2021/22 year.
67
**Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **7. Expenditure**
|**7. Expenditure**|**7. Expenditure**||
|---|---|---|
|**COMPANY**
**ACTIVITY:**
**CATEGORY:**
**Adult Hospice**
**Charitable activity**
**Adult Community**
**Charitable activity**
**Children's Service**
**Charitable activity**
**Education**
**Charitable activity**
**Fundraising**
**Raising funds**
**ANALYSIS OF SUPPORT COSTS:**
**Adult Hospice**
**£'000**
**Pay Costs:**
Management and Administration
475
Support
101
**Non-Pay Costs:**
Governance and Overhead Costs
376
Facilities and Maintenance
431
Catering and Catering Supplies
172
Education and Training
5
Depreciation
214
1,774||**Direct Costs**
**Direct Costs**
**Direct Costs**
**Support**
**2023**
**Pay Costs**
**Non Pay Costs**
**Total**
**Costs**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
3,339
257
**3,596**
1,774
**5,370**
3,041
209
**3,250**
1,009
**4,259**
3,336
197
**3,533**
1,348
**4,881**
94
12
**106**
210
**316**
1,130
1,030
**2,160**
653
**2,813**|
|||10,940
1,705
**12,645**
4,994
**17,639**|
|||**Adult Community**
**Children's Service**
**Education**
**Fundraising**
**2023 Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
470
467
94
261
**1,767**
33
-
-
17
**151**
362
374
69
247
**1,428**
67
256
23
65
**842**
32
29
11
7
**251**
2
2
-
1
**10**
43
220
13
55
**545**
1,009
1,348
210
653
**4,994**|
||1,774||
**Where costs are not directly attributable to an individual service, the shared cost is allocated between the activities on the basis of the time spent for pay costs and the utilisation of maintenance and overhead related expenditure by activities**
68
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **7. Expenditure (Continued)**
|**COMPANY**
**ACTIVITY:**
**CATEGORY:**
**Adult Hospice**
**Charitable activity**
**Adult Community**
**Charitable activity**
**Children's Service**
**Charitable activity**
**Education**
**Charitable activity**
**Fundraising**
**Raising funds**
**ANALYSIS OF SUPPORT COSTS:**
**Adult Hospice**
**£'000**
**Pay Costs:**
**Management and Administration**
**436**
**Support**
**92**
**Non Pay Costs:**
**Governance and Overhead Costs**
**390**
**Facilities and Maintenance**
**381**
**Catering and Catering Supplies**
**160**
**Education and Training**
**7**
**Depreciation**
**152**
**1,618**|**COMPANY**
**ACTIVITY:**
**CATEGORY:**
**Adult Hospice**
**Charitable activity**
**Adult Community**
**Charitable activity**
**Children's Service**
**Charitable activity**
**Education**
**Charitable activity**
**Fundraising**
**Raising funds**
**ANALYSIS OF SUPPORT COSTS:**
**Adult Hospice**
**£'000**
**Pay Costs:**
**Management and Administration**
**436**
**Support**
**92**
**Non Pay Costs:**
**Governance and Overhead Costs**
**390**
**Facilities and Maintenance**
**381**
**Catering and Catering Supplies**
**160**
**Education and Training**
**7**
**Depreciation**
**152**
**1,618**|**Direct Costs**
**Direct Costs**
**Direct Costs**
**Support**
**2022**
**Pay Costs**
**Non Pay Costs**
**Total**
**Costs**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**3,008**
**320**
**3,328**
**1,618**
**4,946**
**2,790**
**212**
**3,002**
**954**
**3,956**
**3,249**
**161**
**3,410**
**1,321**
**4,731**
**213**
**8**
**221**
**198**
**419**
**925**
**548**
**1,473**
**641**
**2,114**|
|---|---|---|
|||**10,185**
**1,249**
**11,434**
**4,732**
**16,166**|
|||**Adult Community**
**Children's Service**
**Education**
**Fundraising**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**429**
**428**
**86**
**232**
**1,611**
**30**
**12**
**-**
**15**
**149**
**371**
**384**
**71**
**267**
**1,483**
**59**
**289**
**21**
**74**
**824**
**30**
**23**
**10**
**6**
**229**
**3**
**3**
**1**
**2**
**16**
**32**
**182**
**9**
**45**
**420**
**954**
**1,321**
**198**
**641**
**4,732**|
||**1,618**||
**Where costs are not directly attributable to an individual service, the shared cost is allocated between the activities on the basis of the time spent for pay costs and the utilisation of maintenance and overhead related expenditure by activities.**
69
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **7. Expenditure (Continued)**
|**GROUP**
**ACTIVITY:**
**Adult Hospice**
**Adult Community**
**Children's Service**
**Education**
**Fundraising**
**Retail Shops**
**ANALYSIS OF SUPPORT COSTS: Adult**
**Pay Costs:**
**Management and Administration**
**Support**
**Non Pay Costs:**
**Governance and Overhead Costs**
**Facilities and Maintenance**
**Catering and Catering Supplies**
**Education and Training**
**Depreciation**|**Direct Costs**
**Direct Costs**
**Direct Costs**
**Support**
**2023**
**Pay Costs**
**Non Pay Costs**
**Total**
**Costs**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**CATEGORY:**
**Charitable activity**
3,339
257
**3,596**
1,732
**5,328**
**Charitable activity**
3,041
209
**3,250**
967
**4,217**
**Charitable activity**
3,336
197
**3,533**
1,307
**4,840**
**Charitable activity**
94
12
**106**
202
**308**
**Raising funds**
1,130
1,030
**2,160**
635
**2,795**
**Other**
1,524
837
**2,361**
263
**2,624**
12,464
2,542
**15,006**
5,106
**20,112**
**Adult**
**Children's**
**Adult Hospice**
**Community**
**Service**
**Education**
**Fundraising**
**Retail**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**445**
**440**
**438**
**88**
**249**
**107**
**1,767**
**101**
**33**
**-**
**-**
**17**
**-**
**151**
**364**
**350**
**362**
**67**
**241**
**44**
**1,428**
**431**
**67**
**256**
**23**
**65**
**-**
**842**
**172**
**32**
**29**
**11**
**7**
**-**
**251**
**5**
**2**
**2**
**-**
**1**
**-**
**10**
**214**
**43**
**220**
**13**
**55**
**112**
**657**
**1,732**
**967**
**1,307**
**202**
**635**
**263**
**5,106**|**Direct Costs**
**Direct Costs**
**Direct Costs**
**Support**
**2023**
**Pay Costs**
**Non Pay Costs**
**Total**
**Costs**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
3,339
257
**3,596**
1,732
**5,328**
3,041
209
**3,250**
967
**4,217**
3,336
197
**3,533**
1,307
**4,840**
94
12
**106**
202
**308**
1,130
1,030
**2,160**
635
**2,795**
1,524
837
**2,361**
263
**2,624**|
|---|---|---|
|||12,464
2,542
**15,006**
5,106
**20,112**|
**Where costs are not directly attributable to an individual service, the shared cost is allocated between the activities on the basis of the time spent for pay costs and the utilisation of maintenance and overhead related expenditure by activities.**
70
## **Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **7. Expenditure (Continued)**
|**. Expenditure (Continued)**|||
|---|---|---|
|**GROUP**
**ACTIVITY:**
**Adult Hospice**
**Adult Community**
**Children's Service**
**Education**
**Fundraising**
**Retail Shops**
**ANALYSIS OF SUPPORT COSTS:**
**Adult**
**Pay Costs:**
**Management and Administration**
**Support**
**Non Pay Costs:**
**Governance and Overhead Costs**
**Facilities and Maintenance**
**Catering and Catering Supplies**
**Education and Training**
**Depreciation**|**Direct Costs**
**Direct Costs**
**Direct Costs**
**Support**
**2022**
**Pay Costs**
**Non Pay Costs**
**Total**
**Costs**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**CATEGORY:**
**Charitable activity**
**3,008**
**320**
**3,328**
**1,578**
**4,906**
**Charitable activity**
**2,790**
**212**
**3,002**
**914**
**3,916**
**Charitable activity**
**3,249**
**161**
**3,410**
**1,282**
**4,692**
**Charitable activity**
**213**
**8**
**221**
**190**
**411**
**Raising funds**
**925**
**548**
**1,473**
**624**
**2,097**
**Other**
**1,311**
**760**
**2,071**
**250**
**2,321**
**11,496**
**2,009**
**13,505**
**4,838**
**18,343**
**Adult**
**Children's**
**Adult Hospice**
**Community**
**Service**
**Education**
**Fundraising**
**Retail**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**408**
**400**
**400**
**81**
**220**
**103**
**1,612**
**92**
**30**
**11**
**-**
**15**
**-**
**148**
**379**
**360**
**374**
**69**
**261**
**39**
**1,482**
**382**
**59**
**289**
**20**
**74**
**-**
**824**
**160**
**30**
**23**
**10**
**6**
**-**
**229**
**6**
**3**
**3**
**1**
**2**
**1**
**16**
**151**
**32**
**182**
**9**
**46**
**107**
**527**
**1,578**
**914**
**1,282**
**190**
**624**
**250**
**4,838**|**Direct Costs**
**Direct Costs**
**Direct Costs**
**Support**
**2022**
**Pay Costs**
**Non Pay Costs**
**Total**
**Costs**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**3,008**
**320**
**3,328**
**1,578**
**4,906**
**2,790**
**212**
**3,002**
**914**
**3,916**
**3,249**
**161**
**3,410**
**1,282**
**4,692**
**213**
**8**
**221**
**190**
**411**
**925**
**548**
**1,473**
**624**
**2,097**
**1,311**
**760**
**2,071**
**250**
**2,321**|
|||**11,496**
**2,009**
**13,505**
**4,838**
**18,343**|
**Where costs are not directly attributable to an individual service, the shared cost is allocated between the activities on the basis of the time spent for pay costs and the utilisation of maintenance and overhead related expenditure by activities**
71
**Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **8. Employees And Remuneration**
The average number of persons employed by the group during the financial year was 389 (2022: 375) and is analysed into the following categories:
|**Clinical Care**
**Income Generation**
**Support**
**Retail**
**Staff costs comprise:**
**Salaries and wages**
**Social security costs**
**Pension – DHSS**
**Pension – NILGOSC**
**Pension – People’s Pension**
**Redundancy costs**|**Group**
**Group**
**Company**
**Company**
**2023**
**2022**
**2023**
**2022**
**No.**
**No.**
**No.**
**No.**
**242**
**236**
**242**
**236**
**31**
**27**
**31**
**27**
**46**
**46**
**46**
**46**
**70**
**66**
**-**
**-**
**389**
**375**
**319**
**309**|
|---|---|
||**Group**
**Group**
**Company**
**Company**
**2023**
**2022**
**2023**
**2022**
**£'000**
**£'000**
**£'000**
**£'000**
**11,874**
**10,882**
**10,546**
**9,734**
**1,017**
**916**
**916**
**837**
**778**
**745**
**773**
**740**
**594**
**594**
**533**
**537**
**119**
**104**
**90**
**82**
**-**
**16**
**-**
**16**
**14,382**
**13,257**
**12,858**
**11,946**|
Staff costs stated above were treated as an expense of the group in the financial year. No amount was capitalised into assets.
Included in group staff costs is £1,281k (2021/22: £990k) which was paid in relation to staff (mainly Clinical Care) on external contracts/ secondment to Hospice
72
**Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **8. Employees And Remuneration (Continued)**
## **Key management compensation**
Key management includes trustees and members of the Corporate Leadership Team. The total remuneration for key management personnel including employer pension contributions and employer’s NI for the financial year is shown below.
|**Trustees**
**Corporate Leadership Team**
**Total key management compensation**|**2023**
**2022**
**£'000**
**£'000**
**-**
**-**
**528**
**418**
**528**
**418**|
|---|---|
There are no emoluments paid to the trustees in either year.
The Board of Trustees Remuneration Sub-Committee decides upon the salary remuneration made to the Chief Executive Officer and the three Directors. The Committee considers a number of matters in arriving at its decisions, including performance and benchmarks with senior management and leadership remuneration paid in other healthcare charities and sectors.
## **Employee benefits exceeding £60,000**
The number of employees whose total employee benefits (including basic pay, allowances, overtime, night duty, weekends, on-call, arrears and excluding employer NI, employer pension costs) for the reporting period fell within each band of £10,000 from £60,000 upwards are as follows:
|Between £60,001 and £70,000
Between £70,001 and £80,000
Between £80,001 and £90,000
Between £90,001 and £100,000
Between £100,001 and £110,000|**Group**
Group
**Company**
Company
**2023**
2022
**2023**
2022
**No.**
No.
**No.**
No.
**3**1**3**1
**1**4**1**4
**2**1**2**1
**2**
- **2**
-
**-** 1
**-** 1
**8**7**8**7|
|---|---|
The above figures include medical staff who are remunerated in line with National Consultant terms and conditions. The Chief Executive Officer’s salary is within the £90k to £100k ban.
73
## **Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **9. Net Income/ (Expenditure)**
The net income/ (expenditure) for the financial year is stated after charging the following:
||**Group**|**Group**|**Company**|**Company**|
|---|---|---|---|---|
||**2023**|**2022**|**2023**|**2022**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|**Trustees’ remuneration**|**-**|**-**|**-**|**-**|
|**Staff pension contributions**|**1,491**|**1,443**|**1,396**|**1,359**|
|**Ex Gratia Payments***|**-**|**4**|**-**|**4**|
|**Operating lease rentals**|**24**|**45**|**24**|**45**|
|**Depreciation (note 12)**|**657**|**528**|**545**|**421**|
|**Audit of the financial statements**|**25**|**25**|**17**|**17**|
*Relates to 2 partial refund payments made to donors who inadvertently over donated, following approval from the Charity Commission for Northern Ireland.
## **10. Subsidiary**
The Hospice owns the entire issued share capital of Northern Ireland Hospice (Trading) Limited. Details in respect of Northern Ireland Hospice (Trading) Limited are set out below:
||**Country of**||||
|---|---|---|---|---|
|**Name of registered office**|**Incorporation**|**Principal Activity**|||
|**Northern Ireland Hospice (Trading) Limited**|**United**
**Kingdom**|**Sale of donated goods and**
**giftware**|||
|**Results for the year**|||**2023**|**2022**|
||||**£'000**|**£'000**|
|**Profit before taxation, net interest and covenanted donations**|||**655**|**727**|
|**Covenanted donations (notes 3 and 23)**|||**(662)**|**(620)**|
|**Net (loss)/ profit for the year**|||**(7)**|**107**|
|**Fixed assets**|||**634**|**644**|
|**Current assets**|||**365**|**970**|
|**Current liabilities**|||**(301)**|**(908)**|
|**Non-current liabilities**|||**-**|**-**|
|**Total net assets**|||**698**|**706**|
Covenanted donations, which are qualifying charitable donations under the company Gift Aid rules, of £662k (2021/22: £620k) were made from Northern Ireland Hospice (Trading) Limited to Northern Ireland Hospice during the year.
Donations of £299k (2021/22: £111k) received by Northern Ireland Hospice (Trading) Limited, where donors have gift aided their donations, have been accounted for in the books of Northern Ireland Hospice.
Hospice also owns the entire issued share capital of Northern Ireland Hospice (Promotions) Limited , which ceased activities in November 2001.
74
## **Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **11. Intangible Assets**
|**COMPANY AND**
**GROUP**
**Cost:**
**At 1 April 2022**
**Additions**
**Disposals**
**At 31 March 2023**
**Amortisation:**
**At 1 April 2022**
**Charge for financial year**
**On disposals**
**At 31 March 2023**
**Net Book Values:**
**At 31 March 2023**
**At 31 March 2022**|**Website**
**Development**
**(WIP)**
**Total**
**£'000**
**£'000**
27
27
31
31
-
-|
|---|---|
||**58**
**58**|
||-
-
-
-
-
-|
||-
-|
||58
58|
||**27**
**27**|
75
**Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **12. Tangible Assets**
|**12. Tangible Assets**||
|---|---|
|**COMPANY**
**Cost:**
**At 1 April 2022**
**Additions**
**Disposals**
**At 31 March 2023**
**Depreciation:**
**At 1 April 2022**
**Charge for financial year**
**On disposals**
**At 31 March 2023**
**Net Book Values:**
**At 31 March 2023**
**At 31 March 2022**|**Freehold**
**Leasehold**
**Furniture**
**and**
**Equipment**
**IT**
**Equipment**
**Motor**
**Vehicles**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**16,965**
**49**
**3,156**
**1,004**
**1**
**21,175**
**-**
**-**
**235**
**3**
**-**
**238**
**-**
**-**
**-**
**-**
**-**
**-**|
||16,965
49
3,391
1,007
1
21,413|
||**2,488**
**38**
**2,651**
**956**
**1**
**6,134**
**329**
**2**
**181**
**33**
**-**
**545**
**-**
**-**
**-**
**-**
**-**
**-**|
||2,817
40
2,832
989
1
6,679|
||14,148
9
559
18
**-**
14,734
**14,477**
**11**
**505**
**48**
**15,041**|
Hospice freehold properties were professionally valued at 31 March 2012 by Saville (NI) Limited, other than the Somerton facility which was valued at 31 March 2018.
Included in Land and Buildings is land valued at £1,758K. This land is being carried at open market value and is not subject to depreciation.
76
**Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
## **12. Tangible Assets (Continued)**
|**GROUP**
**Cost:**
**At 1 April 2022**
**Additions**
**Disposals**
**At 31 March 2023**
**Depreciation:**
**At 1 April 2022**
**Charge for financial**
**year**
**On disposals**
**At 31 March 2023**
**Net Book Values:**
**At 31 March 2023**
**At 31 March 2022**|**Land and**
**Buildings**
**Land and**
**Buildings**
**Freehold**
**Leasehold**
**Furniture and**
**Equipment**
**IT Equipment**
**Motor**
**Vehicles**
**Total**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**£'000**
**17,240**
**1,213**
**3,745**
**1,003**
**134**
**23,335**
**-**
**48**
**288**
**4**
**-**
**340**
**-**
**-**
**-**
**-**
**-**
**-**|
|---|---|
||**17,240**
**1,261**
**4,033**
**1,007**
**134**
**23,675**|
||**2,571**
**860**
**3,171**
**955**
**92**
**7,649**
**341**
**55**
**209**
**33**
**19**
**657**
**-**
**-**
**-**
**-**
**-**
**-**|
||**2,912**
**915**
**3,380**
**988**
**111**
**8,306**|
||**14,328**
**346**
**653**
**19**
**23**
**15,369**
**14,669**
**353**
**574**
**48**
**42**
**15,686**|
Hospice freehold properties were professionally valued at 31 March 2012 by Saville (NI) Limited, other than the Somerton facility which was valued at 31 March 2018. Included in Land and Buildings is land valued at £1,758K. This land is being carried at open market value and is not subject to depreciation.
77
## **Northern Ireland Hospice**
## **Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **13. Investments - Fixed Assets**
|**Investment in subsidiary companies**
**Investments held at market value**|**Group**
**Group**
**Company**
**Company**
**2023**
**2022**
**2023**
**2022**
**£'000**
**£'000**
**£'000**
**£'000**
**-**
**-**
**300**
**300**
**5,980**
**7,445**
**5,980**
**7,445**
**5,980**
**7,445**
**6,280**
**7,745**|
|---|---|
The Charity owns 300,000 ordinary shares of £1 each, being the whole of the issued ordinary share capital of Northern Ireland Hospice (Trading) Limited, a company registered in Northern Ireland, company number NI026976. The subsidiary is used for non-primary purpose trading activities.
It also owns 2 ordinary shares of £1 each being the whole of the issued ordinary share capital of Northern Ireland Hospice (Promotions) Limited, a company registered in Northern Ireland. This company has been dormant since November 2001.
||**Group**|**Group**|**Company**|**Company**|
|---|---|---|---|---|
||**2023**|**2022**|**2023**|**2022**|
||**£'000**|**£'000**|**£'000**|**£'000**|
|**Investments held at market value comprised:**|||||
|**Fixed Interest**|**1,662**|**1,088**|**1,662**|**1,088**|
|**UK Equities**|**1,132**|**1,206**|**1,132**|**1,206**|
|**Overseas Equities**|**2,264**|**2,167**|**2,264**|**2,167**|
|**Commodity**|**94**|**194**|**94**|**194**|
|**Property**|**308**|**321**|**308**|**321**|
|**Alternatives**|**128**|**102**|**129**|**102**|
|**Multi Asset**|**298**|**278**|**298**|**278**|
|**Cash held within the investment portfolio**|**94**|**2,089**|**93**|**2,089**|
||**5,980**|**7,445**|**5,980**|**7,445**|
|**Movement in fixed asset investments held at**|**market value:**||||
||**£'000**||||
|**Market value brought forward at 1 April 2022**|**7,445**||||
|**Additions to investments at cost**|**124**||||
|**Disposals at carrying value**|**(1,333)**||||
|**Net (loss) on revaluation**|**(256)**||||
|**Market value at 31 March 2023**|**5,980**||||
There were no individual shareholdings or investments which are considered to be material with regard to their market values and proportion of the portfolio as at 31 March 2023.
78
## **Northern Ireland Hospice**
## **Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
|**14.**
**Stocks**
**Stock**
**15. Debtors**
**Amounts falling due within one year:**
**Income tax recoverable - gift aid**
**Value added tax recoverable**
**Other debtors**
**Prepayments and accrued income**
**Due from subsidiary companies (note**
**23)**||**Group**
**Group**
**Company**
**Company**
**2023**
**2022**
**2023**
**2022**
**£'000**
**£'000**
**£'000**
**£'000**
**89**
**72**
**37**
**37**
**89**
**72**
**37**
**37**|
|---|---|---|
||||
|||**Group**
**Group**
**Company**
**Company**
**2023**
**2022**
**2023**
**2022**
**£'000**
**£'000**
**£'000**
**£'000**
**242**
**173**
**242**
**173**
**65**
**79**
**41**
**54**
**2,575**
**1,645**
**2,575**
**1,645**
**303**
**121**
**277**
**99**
**-**
**237**
**844**
**3,185**
**2,018**
**3,372**
**2,815**|
Other debtors include £1,624K (2021/22: £481K) of accrued income for legacies.
All debtors are due within one year. All trade debtors are due within the company’s normal terms, which is 30 days. Trade debtors are shown net of impairment in respect of doubtful debts.
## **16. Creditors**
|**Amounts falling due within one year:**
**Trade creditors**
**Other creditors and accruals**
**Taxation and social security**
**Deferred income**|**Group**
**Group**
**Company**
**Company**
**2023**
**2022**
**2023**
**2022**
**£'000**
**£'000**
**£'000**
**£'000**
**452**
**372**
**448**
**364**
**1,175**
**977**
**1,115**
**922**
**-**
**-**
**-**
**-**
**-**
**190**
**-**
**190**
**1,627**
**1,539**
**1,563**
**1,476**|
|---|---|
The repayment terms of trade creditors vary between on demand and ninety days. No interest is payable on trade creditors. Tax and social insurance are subject to the terms of the relevant legislation. Interest accrues on late payment. No interest was due at the financial year end date. The terms of the accruals are based on the underlying contracts. Other amounts included within creditors not covered by specific note disclosures are unsecured, interest free and repayable on demand.
79
## **Northern Ireland Hospice Notes to the Consolidated Financial Statements For the Financial Year Ended 31 March 2023**
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|17.|Note To The Statement Of Cash Flows Company|
|2023|2022|
|£'000|£'000|
|Net income/ (expenditure) for the reporting period|
|(as per the Statement of Financial Activities)|(1,889)|(1,978)|
|Adjustments for:|
|Depreciation|545|421|
|(Increase)/decrease in debtors|(557)|352|
|Increase/(decrease) in creditors|87|(176)|
|Movement in pension scheme deficit|(4,637)|(1,194)|
|Net cash provided by/(used in) operating activities|(6,451)|(2,575)|
|GROUP|2023|2022|
|£'000|£'000|
|Net income/ (expenditure) for the reporting period|
|(as per the Consolidated Statement of Financial|(1,897)|(1,872)|
|Activities)|
|Adjustments for:|
|Depreciation|657|527|
|-|
|(Increase)/decrease in stock|(17)|
|(Increase)/decrease in debtors|(1,167)|(545)|
|Increase/(decrease) in creditors|87|(179)|
|Movement in pension scheme deficit|(4,637)|(1,194)|
|Net cash provided by/(used in) operating activities|(6,974)|(3,263)|
|18.|Operating Lease Commitments|
|Hospice is committed to making the following payments, in respect of operating leases:|
|Group|Group|Company|Company|
|2023|2022|2023|2022|
|£'000|£'000|£'000|£'000|
|Payments within the next year|7|18|7|18|
|Payments within the next 2 to 5 years|11|2|11|2|
|-|-|-|-|
|Payments after 5 years|
|18|20|18|20|
**----- End of picture text -----**
80
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **19. Pension Scheme**
The Hospice operates three pension schemes in respect of certain members of staff.
## Defined benefit schemes: NILGOSC and DHSS
The assets of the defined benefit pension schemes are held separately from those of Hospice and are administered by NILGOSC and DHSS respectively. Following a change in legislation in September 2005 there is a potential debt on an employer that could be levied by the Trustees of the Pension Schemes. The debt is due in the event of the employer ceasing to participate in the Scheme or the Scheme winding up. The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme with the assets of the Scheme.
Hospice understands that no potential employer debt figures, as at 31 March 2023, have been calculated for each employee participating in the DHSS Pension Scheme (also known as HSC Pensions'). Employer contributions to the DHSS scheme are 22.5% and employee contributions range between 5.1% and 13.5%. The contributions charged to the Statement of Financial Activities during the financial year amounted to £778k (2021/22: £744k).
A review of the NILGOSC pension scheme was carried out during 2014. After consulting with NILGOSC and affected staff, and taking professional advice, a decision was taken to close the scheme to new entrants, from August 2014, unless their pay grade was at Band 7 or above. In addition, a commitment was given to settle the net pension liability over the next 13 years, by making additional annual contributions – there was no additional payment required for 2022/23 (2021/22: £nil).
Hospice makes employer contributions to NILGOSC, which is a funded scheme of the definedbenefit type. NILGOSC is a final-salary contracted out occupational pension scheme. The fund is invested in suitable investments, managed by the Committee. For 2022/23, the contribution rates were 26.1% for employers and ranging between 5.5% and 8.5% for employees. The asset at the end of March 2023 was £1,979k (2021/22: liability of £2,658k).
## **NILGOSC: GROUP AND COMPANY**
|**Key Assumptions**|**31-Mar-23**|**31-Mar-22**|
|---|---|---|
||**% per annum**|**% per annum**|
|**Discount rate**|**4.60%**|**2.70%**|
|**CPI Inflation**|**2.60%**|**3.00%**|
|**Pension increases**|**2.60%**|**3.00%**|
|**Pension accounts revaluation rate**|**2.60%**|**3.00%**|
|**Salary increases**|**4.10%**|**4.50%**|
81
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
## **19. Pension Scheme (Continued)**
## **Mortality Assumption**
The mortality assumptions at the accounting date are based on actual mortality experience of members within the Fund based on analysis carried out as part of the 2019 Actuarial Valuation, and allow for expected future mortality improvements. Sample life expectancies at age 65 in normal health resulting from these mortality assumptions is shown below:
|**Mortality Assumption**|||**31-Mar-23**|**31-Mar-22**|
|---|---|---|---|---|
|**_Males_**|||||
|**Pensioner Member**|**aged 65 at accounting date**||**22.2**|**21.8**|
|**Active member aged 45 at accounting date**|||**23.2**|**23.2**|
|**_Females_**|||||
|**Pensioner Member**|**aged 65 at accounting date**||**25**|**25.0**|
|**Active member aged 45 at accounting date**|||**26**|**26.4**|
||%**at 31-Mar-23 Value at 31Mar-23**||%**at 31-Mar-22 Value at 31Mar-22**||
|**Asset Allocation**|**%**|**£'000**|**%**|**£'000**|
|**Equities**|**41.30%**|**6,555**|**40.60%**|**6,762**|
|**Property**|**10.50%**|**1,667**|**10.90%**|**1,816**|
|**Government**
**Bonds**|**20.50%**|**3,254**|**24.10%**|**4,015**|
|**Corporate Bonds**|**2.70%**|**429**|**1.80%**|**300**|
|**Multi Asset Credit**|**13.10%**|**2,079**|**12.90%**|**2,149**|
|**Cash**|**5.90%**|**936**|**6.20%**|**1,033**|
|**Other**|**6.00%**|**952**|**3.50%**|**583**|
|**Total**|**100.00%**|**15,872**|**100.00%**|**16,658**|
|**Reconciliation of funded status to Balance Sheet**
**Fair value of assets**
**Present value of funded defined benefit obligation**
**Funded Status**
**Liability recognised on the Balance Sheet**|**Value at 31-Mar-23**
**Value at 31-Mar-22**
**£'000**
**£'000**
**15,872**
**16,658**
**(13,893)**
**(19,316)**|
|---|---|
||**1,979**
**(2,658)**
**1,979**
**(2,658)**|
82
**Northern Ireland Hospice Notes to the Consolidated Financial Statements**
## **For the Financial Year Ended 31 March 2023**
|**19.**|
**Pension S**cheme (Continued)|||
|---|---|---|---|
|||**Year Ended**|
**Year Ended**|
|**Amount recognised in Statement of Financial Activities**||**31Mar-23**|**31Mar-22**|
|||**£'000**|**£'000**|
|**_Operating Cost_**||||
|**Current Service cost**||**1,038**|**1,189**|
|**Past service cost**||**-**|**-**|
|**_Financing Cost_**||||
|**Interest on net defined benefit Liability/(asset)**||**64**|**75**|
|**Pension expense recognised in the Statement of Financial Activities**||**1,102**|**1,264**|
|Allowance for administration expenses included in Current Service Costs £0.011m.||||
|||**Year Ended**|**Year Ended**|
||**Amounts recognised in other recognised gains and losses**|**31**
**Mar 2023**|**31**
**Mar 2022**|
||||**£'000**|
||Asset gains/(losses) arising during the period|(1,680)|306|
||Actuarial gains/(losses) due to changes in financial assumptions|8,396|-|
||Actuarial gains/(losses) due to changes in demographic|(59)|-|
||assumptions|||
||Actuarial gains/(losses) due to liability experience|(1,506)|-|
||Liability (losses)/gains arising during the period|-|1,560|
||Total amount recognised in other recognised gains and losses|**5,151**|**1,866**|
|||**Year Ended**|**Year Ended**|
|||**31**|**31**|
||**Changes to the present value of the defined benefit obligation**|**Mar 2023**|**Mar 2022**|
|||**£'000**|**£'000**|
||Opening defined benefit obligation|19,316|19,359|
||Current service cost|1,038|1,189|
||Interest expense on defined benefit obligation|520|406|
||Contributions by participants|157|155|
||Actuarial losses/(gains) on liabilities|-|(1,560)|
||Net benefits paid out|(307)|(233)|
||Actuarial gains/(losses) due to changes in financial assumptions|(8,396)|-|
||Actuarial gains/(losses) due to changes in demographic|59|-|
||assumptions|||
||Actuarial gains/(losses) due to liability experience|1,506|-|
||Settlements||-|
||Closing defined benefit obligation|**13,893**|**19,316**|
|||||
83
**Northern Ireland Hospice**
## **Notes to the Consolidated Financial Statements**
## **For The Financial Year Ended 31 March 2023**
## **19. Pension Scheme (Continued)**
|**Changes to the fair value of assets**
Opening fair value of assets
Interest income on assets
Re-measurement gains/(losses) on assets
Contributions by the employer
Contributions by participants
Net benefits paid out
Net increase in assets from disposals/acquisitions
Settlements
Closing fair value of assets
**Actual return on assets**
Interest income on assets
Gain/(loss) on assets
Actual return on assets
_Estimated pension expense in future periods:_
**Analysis of amounts charged to Statement of Financial**
**Activities**
Current service cost
Interest on net defined benefit liability
Total estimated pension expense|**Year Ended**
**31 Mar 2023**
**Year Ended 31**
**Mar 2022**
**£'000**
**£'000**
16,658
15,507
456
331
(1,680)
306
588
592
157
155
(307)
(233)
-
-
**15,872**
**16,658**
**Year Ended 31**
**Mar 2023**
**Year Ended 31**
**Mar 2022**
**£'000**
**£'000**
456
331
(1,680)
306
**(1,224)**
**637**
**Year Ended**
**31 Mar 2023**
**Year Ended**
**31 Mar 2022**
**£'000**
**£'000**
**521**
**1,115**
**(105)**
**63**
**416**
**1,178**|
|---|---|
## Defined contribution scheme: The People's Pension
The People’s Pension (also known as the 'AE Pension') administers the auto-enrolment scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The contribution rates for the Peoples pension scheme is 3% for employer contribution and 5% for employees. The contributions charged to the Statement of Financial Activities by the company during the financial year amounted to £119k (2021/22: £104k).
84
**Northern Ireland Hospice Notes to the Consolidated Financial Statements For The Financial Year Ended 31 March 2023**
## **20. Contingent Asset**
At the year-end Hospice was aware of a small number of estates in which it was named as a beneficiary. Some of these have not been quantified as the values of the estates are subject to a number of potentially substantial variables. These variables include taxation, the rise and fall in stock market prices and the volatility of the housing market, as well as prospective litigation, which could affect the monies due to Hospice. These legacies have not been recognised as income in the year ended 31 March 2023 because no notification of impending distribution or approval of estate accounts has been received and the values are uncertain.
## **21. Contingent Liabilities**
A contingent liability exists to repay grants received should certain conditions not be fulfilled by Hospice. In the opinion of the Trustees the terms of the Letters of Offer have been, or will be, complied with and no liability is expected.
A Deed of Priorities has been signed by Northern Ireland Hospice, Belfast Health and Social Care Trust and Danske Bank to take account of this, and the security held by the Bank over the whole of Somerton House and surrounding property.
## **22. Funds Of The Charity – Balances**
|**COMPANY**
**Restricted**
**Restricted Grant Funds**
**Unrestricted**
**General fund**
**Total**
**GROUP**
**Restricted**
**Restricted Grant Funds**
**Unrestricted**
**General fund**
**Total**|**Opening**
**Balance 1**
**April**
**Income**
**(incl.**
**Gains)**
**Expenditure**
**(incl.**
**Losses)**
**Closing**
**Balance**
**31 March**
**2022**
**2023**
**£'000**
**£'000**
**£'000**
**£'000**
**482**
**745**
**(889)**
**338**
**21,901**
**20,157**
**(17,007)**
**25,051**|
|---|---|
||**22,383**
**20,902**
**(17,896)**
**25,389**|
||**Opening**
**Balance 1**
**April**
**Income**
**(incl.**
**Gains)**
**Expenditure**
**(incl.**
**Losses)**
**Closing**
**Balance**
**31 March**
**2022**
**2023**
**£'000**
**£'000**
**£'000**
**£'000**
**482**
**745**
**(889)**
**338**
**22,308**
**22,621**
**(19,480)**
**25,449**
**22,790**
**23,366**
**(20,369)**
**25,787**|
85
**Northern Ireland Hospice**
## **Notes to the Consolidated Financial Statements**
## **For The Financial Year Ended 31 March 2023**
## **22. Funds Of The Charity – Analysis Between Funds**
|**COMPANY**
**Intangible Fixed Assets**
**Tangible Fixed Assets**
**Fixed Asset - Investments**
**Cash**
**Other Current Assets**
**Current Liabilities**
**Loans**
**Pension Asset/(Liability)**
**Total**
**GROUP**
**Intangible Fixed Assets**
**Tangible Fixed Assets**
**Fixed Asset – Investments**
**Cash**
**Other Current Assets**
**Current Liabilities**
**Loans**
**Pension Asset/(Liability)**
**Total**|**Unrestricted -**
**General Funds 2023**
**Restricted Grant**
**Funds 2023**
**TOTAL**
**2023**
**2023**
**2023**
**£'000**
**£'000**
**£'000**
**58**
**-**
58
**14,734**
**-**
14,734
**6,280**
**-**
6,280
**154**
**338**
492
**3,409**
**-**
3,409
**(1,563)**
**-**
(1,563)
**-**
**-**
-
**1,979**
**-**
1,979
25,051
338
25,389
**Unrestricted**
**Restricted**
**General Funds 2023**
**Grant Funds**
**2023**
**TOTAL 2023**
**£'000**
**£'000**
**£'000**
**58**
**-**
58
**15,369**
**-**
15,369
**5,980**
**-**
5,980
**416**
**338**
754
**3,274**
**-**
3,274
**(1,627)**
**-**
(1,627)
**-**
**-**
-
**1,979**
**-**
1,979
25,449
338
25,787|
|---|---|
86
**Northern Ireland Hospice Notes to the Consolidated Financial Statements For The Financial Year Ended 31 March 2023**
## **23. Related Party Transactions**
Northern Ireland Hospice owns the entire issued share capital of Northern Ireland Hospice (Trading) limited. The principal activity of Northern Ireland Hospice (Trading) Limited is the sale of donated goods and giftware. It operates a network of 26 retail shops in the local area and generates income for Hospice services.
The trading company donates qualifying charitable donations (covenanted donations) to the Northern Ireland Hospice under the company Gift Aid rules. In addition, gift aided donations made to the trading company are accounted for in the books of the Northern Ireland Hospice. For ease of operations, each company process income and expenditure (receipts and payments) on behalf of the related party as necessary. All transactions with related parties are conducted on an arm’s length basis.
The company had the following related party transactions with the Northern Ireland Hospice Trading Limited (NIH Trading) during the year.
|**Opening Balance**
Bank Transfers
Covenanted Donation from NIH Trading paid during the year
Profits from NIH Trading
Income received by NI Hospice on behalf of NIH Trading
Income received by NIH Trading on behalf of NI Hospice
Salaries Expenditure by NI Hospice on behalf of NIH Trading
Payments by NI Hospice on behalf of NIH Trading
Payments by NIH Trading on behalf of NI Hospice
Gift Aid Sales balance - movement
Management Charge from NI Hospice to NIH Trading
Covenanted Donation from NIH Trading due
**Closing Balance (notes 15 and 23)**|**2023**
**2022**
**£'000**
**£'000**
**844**
**1,799**
**(1,826)**
**(2,390)**
**(600)**
**(495)**
**(600)**
**-**
**(72)**
**(221)**
**67**
**34**
**1,515**
**1,305**
**96**
**52**
**(1)**
**(9)**
**10**
**6**
**142**
**143**
**662**
**-**|
|---|---|
||**237**
**224**|
87
**Northern Ireland Hospice**
## **Notes to the Consolidated Financial Statements**
## **For The Financial Year Ended 31 March 2023**
## **24. Financial Instruments**
|_Measured as undiscounted amounts receivable:_
Income tax recoverable - gift aid (note 15)
Value added tax recoverable (note 15)
Other Debtors (note 15)
Due from subsidiary companies
(notes 15 and 23)
**_Financial liabilities_**
_Measured as undiscounted amounts payable:_
Trade creditors (note 16)
Bank loan (note 16)|**2023**
**2022**
**2023**
**2022**
**£'000**
**£'000**
**£'000**
**£'000**
**242**
173
**242**
173
**65**
79
**41**
54
**2,575**
1,645
**2,575**
1,645
-
**237**
844|
|---|---|
||**2,882**
1,898
**3,095**
2,716|
||**452**
372
**448**
364
-
-
**452**
372
**448**
364|
## **25. Post Balance Sheet Events**
No circumstances have arisen or events occurred, between the balance sheet date and the date
of approval of the financial statements by the Board, which would require adjustment or disclosure in the financial statements.
## **26. Approval of The Financial Statements**
The financial statements were approved by the Board of Trustees on 7[th] September 2023.
88
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