annual report & accounts 2018 - st peter & st …...8 st peter & st james hospice |...

Annual Report & Accounts 2018

Nurse Vicky sharing a joke with Margaret

St Peter & St James Hospice | Annual Report & Accounts 2018 3

The St Peter and St James Charitable TrustCharity number 1056114

Company number 3204919Contents

About us

From the Chair and Chief Executive ......................................... 5

Who we are and how we help ..................................................... 6

Our history ............................................................................................. 8

Our strategy ........................................................................................ 10

Key activities in 2017/18 ............................................................. 12

People making a difference

Our supporters ................................................................................. 22

Our fundraising activities ............................................................ 24

Listening to our supporters ........................................................ 24

Our fundraising plans and challenges for 2018 ................ 26

Our volunteers .................................................................................. 28

Finances

Financial review ................................................................................ 30

Independent Auditor’s Report .................................................. 35

Consolidated statement of financial activities .................. 37

Consolidated balance sheets .................................................... 38

Statement of cash flows .............................................................. 39

Notes to the accounts ................................................................... 40

Structure, Governance and Management ........................ 62

From the Chair and Chief Executive

We have focused on providing expert care and support for people with complex needs at the end of life, supporting families, friends and carers dealing with death, dying and bereavement. The 14 rooms at our beautiful hospice site are well used, but for the 685 people we supported with specialist care over the year, being in their own home was often the priority. The vital work of Clinical Nurse Specialists and access to our Wellbeing services provide a ‘lifeline’ for many, enabling them to live well and to focus on what matters most to them.

We offer support and services but we receive so much in return – feedback on what we do, vital funds to continue our work, connections into the community and business networks, donations to our shops, sponsorship, press and media coverage that raise awareness and understanding of what we do and of course volunteer support.

We have almost three volunteers to every member of staff. The myriad of roles is as varied as the people who give their time so generously. Thank you for everything you do.

Our new brand launched during the year has been positively received. It reflects our beautiful rural setting and also the love and support that people genuinely feel they receive from our staff and volunteers.

With a fresh sense of purpose and ambition for the hospice in the future the positive financial outturn for the year is welcome, and a relief! We are acutely aware of the need to balance the books over the longer term by increasing our fundraising and developing new sustainable income streams, as well, of course, as managing our expenditure effectively.

We also take this opportunity to thank our funders and supporters for their continued commitment and investment in our work and we thank our team of skilled and experienced Trustees, staff and volunteers who together make St Peter & St James Hospice an exceptional organisation.

Keith Banbury OBE Barbara Williams Chair Chief Executive

If the previous year was one of transition with a change of Chair, Chief Executive and other members of the Board of Trustees, the last year has been one of building on strong foundations.


St Peter & St James Hospice | Annual Report & Accounts 20186

The core of our work remains caring for people throughout the last year of life and supporting families and loved ones through the challenges of illness, bereavement and grief.

Our continuum of care extends long after someone’s death, with a full range of grief support. From individual counselling to support groups and specialised workshops, we’re here for our community when it matters most.

Hospice care is full of life

Many people think a hospice is where you go to die. We challenge that perception. Our work is about helping people to live well by creating a sense of wellbeing and security for them and their loved ones; relieving their symptoms, improving their understanding of what is happening to them and enabling them to spend time with those most important to them.

Who we are and how we helpWe provide expert and compassionate hospice care to adults living with terminal illness, delivering our services at the hospice and in people’s own homes.

We are over

140 staff and400 volunteers

685 people with a terminal

diagnosis received our hospice care in 2017/18

Our volunteers gave an incredible

42,874 hours of their time

Augusta enjoying a visit from her husband, David,

and Molly the dog


Our history

Following Jim Dinnage’s death in 1963, Susan returned to our current hospice site and started the St Peter & St James Holiday Home for the Disabled. It was registered as a nursing home in 1977 and in 1980 the first ever hospice patients were admitted.

The objects of our Charity as set out in the Memorandum and Articles of Association are:

• To maintain St Peter and St James Hospice and Continuing Care Centre as a Registered Nursing Home at Wivelsfield to provide nursing and palliative care for the sick, physically handicapped and terminally ill on a non-profit making basis, both in the Hospice and Continuing Care Centre, and in the community.

• In recognition of its origin as the Donkey Club, to contribute to the aid and succour of needy donkeys on its own premises or elsewhere.

• To promote such other charitable objectives as the Charity shall from time to time in General Meetings determine.

To this day, we have donkeys on site. Our ‘boys’, Dylan and Dudley, provide a great source of comfort (and entertainment!) to families and their loved ones.

We’ve been here for our community for many years. Our founders, Jim and Susan Dinnage, originally ran a donkey sanctuary and after their son Peter died of cancer in 1954, St Peter’s was created as a house where sick or disabled children could stay with their families.

We’ve been here for local families for over

35 years

Pay day 1980 2018

Carol meeting Dudley and Dylan, our hospice donkeys


Our Strategy

2.1 Grow, maximise and sustain statutory, voluntary, earned and investment income

2.2 Produce deficit reduction plan, incorporating income and expenditure, to live within our means

2.3 Ensure value for money by applying principles of economy, efficiency and effectiveness

Strategic Aim 2: Generate sustainable funding and maximise resources to provide our services for as long as we are needed.

3.1 Ensure our business is well-governed and ensure alignment of strategy and business plan and financial sustainability

3.2 Manage our quality standards and risks effectively within our regulatory frameworks

3.3 Support, develop and manage our staff and volunteers in the achievement of our objectives

Strategic Aim 3: Operate a well-governed, sustainable business.

1.1 Understand the needs of the communities we serve and ensure we can evidence the impact of our services

1.2 Ensure our services are safe, effective, caring, responsive and well-led

1.3 Identify opportunities and establish business cases for projects to extend our reach and secure income

Strategic Aim 1: Provide high-quality, effective clinical services and support towards, at and after the end of life.


To ensure high quality, safe care now and in years to come, we maintain a healthy balance between clinical service delivery, financial management and sound governance.

Our three year strategy map illustrates how we will achieve our charitable objects including

the principal activity and public benefit of the provision of hospice care and services.

It comprises three high level strategic aims, with principal objectives for each.


Key activities in 2017/18

Our vision is to make a positive difference to the experience of everybody in our community who faces death or bereavement.

People are living longer and increasingly, they come to us with multiple conditions and more complex needs. We know we need to work differently to prioritise those who need inpatient care the most while continuing to reach others in the community who would benefit from our support.

In 2017, we developed a staffing ratio tool to help us to ensure we had the right number of people with the right skills at the right times, to care for those receiving inpatient care. We worked with other healthcare providers in the community; we extended the reach of our expert care into other settings such as nursing homes; reduced hospital admissions for the NHS and provided wider public benefit.

In 2018/19 we will develop innovative education tools to support more providers in our community to develop the capabilities and confidence to deliver excellent end of life care.

We’ll also develop a Clinical Strategy to shape the delivery of our future care – ensuring we continue to meet the changing needs of our community.

Priority: Agree the future scope and scale of our long term inpatient provision

The average length of stay on our ward was

9.2 days


Nurses Trish and Vicky


One of our cooks, Leslie



With people living longer, we are often supporting them with multiple and complex conditions at the end of life. It’s more important than ever that we can rise to the challenge of meeting these needs whilst living within our means.

All of our hospice services are free of charge. We receive limited funding from the NHS (around 17% of total funds) and rely on the generosity of our community to cover the majority of our running costs. In last year’s Trustee Report, we recognised that demand had been outpacing income for some time and the principal risk that we faced was that we would run out of money.

To manage this risk, we’ve implemented a four year financial forecasting tool to inform

decision-making, strengthened our strategic financial leadership and put into action a campaign to remind people what a positive difference leaving the hospice a legacy in their will can make.

This year, we’ve achieved a surplus position. However, there is work to be done while we have the breathing space we need to implement our plans to diversify and grow our income, enabling us to be here for as long as we are needed.

In 2018/19 we’ll establish an Income Generation Development Group with input from entrepreneurial experts to take forward income diversification plans.

Priority: Establish a plan to achieve a break-even budget



Our charity shops provide us not only with a vital financial contribution towards our services, but are also the ‘face’ of our charity on the high street. Our dedicated staff and volunteers in the retail team are often a caring point of contact for people in our community experiencing the challenges of bereavement.

This year, we’ve developed plans to invest in our retail operations so we are able to build upon the financial contribution made by our charity shops.

In 2018/19 we’ll increase our presence on the high street with more retail outlets bringing in much-needed funds.

Priority: Review and potentially develop the retail operation

Our

supporters

spent over

£1 millio

n

on bargains

in our charity

shops


Liz, one of our dedicated volunteers


It was one of the best days of our lives

‘My lasting impression of the hospice is one of great care and compassion. I was very stressed and depressed when I first came here; my health was deteriorating and we felt unable to cope. Coming to the hospice was a welcome change. The staff are devoted to helping everyone – not just patients, but their families and guests too. Thanks to them, I married my beautiful Liv and had one of the best days of my life.’ Dave Willie

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Ian

Pac

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Key activities 2017/18

It’s important that people who need our care and their loved ones feel supported through every step of their journey.

This year we started a Journey Mapping Project to help us enhance quality of care and focus resources towards improvements that will be most valued by the people we serve. We have built the foundations of the project – providing training for staff and mapping the patient journey from first point of contact as a series of consecutive events or steps.

In 2018/19 we’ll be using the perspectives of our service users and the feedback we receive through compliments and complaints to identify the things that will really make a positive difference to them and their loved ones’ experience.

We’ll also use the maps as insight and training tools to tell the story of the service user experience so that everyone in our team understands what matters most.

Priority: Continue to identify areas and opportunities for improvement of service users’ experience



Effective communication, both internally and externally, is critical in ensuring achievement of the hospice’s objectives and wider vision.

This year we developed a new brand campaign, refreshed our website and created a communications strategy to inform our work

in this area going forward. Through patient and family stories, photography and wider content we also worked to challenge common misconceptions about hospice care and help staff, volunteers, supporters and our community understand what we do and how we can help.

Priority: Improve communications

Spring 2018

Registered charity number: 1056114

Find out more about our Wellbeingservices

News from St Peter & St James Hospice

Summer 2018



Autumn/Winter 2017



Give the gift of

hospice care this

Christmas

Caring_Autumn_2017_v4_AW.indd 1

19/10/2017 11:09


Taking time to laugh and talk together


Our supporters

About 80% of our total funds are used to employ our expert staff, most of whom are clinicians specialising in palliative care and support.

Without these charitable funds, we could not exist and we are extremely grateful to all who support us to care for our local community.

The financial support we receive from individuals and families in our community, our fundraising support groups, local businesses and Trusts cover the majority of the running costs needed to provide our services.

£60will cover four

complementary therapy treatments

£7,200 will cover all hospice

costs for one day

£19will pay for one hour of

compassionate care from a hospice nurse

£600 will train 10 hospice

volunteers

Pay

day


‘Lin was the love of my life. She came to the hospice to spend her last days and we were blown away by the unbelievable care and compassion shown. We were treated like the only people in the world going through such pain; nothing was too much trouble and the nurses were there to offer support, kindness, or even just a reassuring smile and a cup of tea. Those little moments meant so much and we were inspired to fundraise – we’re now at over £40,000. Losing Lin has been so hard, but I try to live with the same zest and generosity that she did and it brings me comfort to know that we may have helped other families.’ Geoff Atkins


Our fundraising activities

• highlighting the significant benefit that the hospice receives through gifts left in wills

• direct marketing to individuals who have expressed an interest in the hospice

• raising awareness of the care we deliver through the sharing of stories within our own literature and across local media

• development and participation in fundraising events where supporters raise funds

• raising funds in the local community including through ten fundraising support groups

• our lottery which is outsourced to the Local Hospice Lottery, a professional fundraising organisation

• soliciting gifts from companies, charitable trusts, foundations and other statutory grant giving organisations

We occasionally use professional fundraisers as part of direct appeals. Each of these partners is selected through a due diligence process which includes checking their direct compliance with fundraising regulation and legislation where applicable. We will always act in accordance with the Charities Act 2016 when using third party professional fundraising organisations.

Listening to our supportersWe are committed to the highest standards of supporter care and we comply with the key principles and behaviours of the Code of Fundraising Practice issued by the Fundraising Regulator. We also comply with all Charity Commission guidance and legislation including the key fundraising principals outlined in the Charities Act 2016.

We understand that personal data is entrusted to us and appreciate the importance of protecting and respecting the privacy of our supporters. To this end we comply fully with the data protection law in force in the UK and with all applicable confidentiality law and guidelines. The introduction of the General Data Protection Regulation has allowed us the opportunity to contact approximately 12,000 supporters to ensure that only those who want to hear from the hospice are contacted in the future.

We take complaints very seriously and have developed a Complaints Comments & Compliments Policy where complaints are compiled in a feedback log with the aim of investigating and resolving each complaint in a timely way. During 2017/18 we registered three complaints about our fundraising across all of the activities outlined above. Each of these complaints were investigated and resolved as outlined in our policy. These complaints were detailed in our annual return to the Fundraising Regulator.

We solicit donations through:

Our annual Star Walk event


Our fundraising strategy will be defined in part by the development of a new clinical strategy which is expected in the third quarter of 2018. However, we have identified three key objectives to allow the growth of fundraising in 2018 and beyond.

They include:

• the development and growth of our individual donor base

• a sustained, multi-channel legacy campaign to encourage supporters to consider leaving a gift in their will

• to build donations within our local community

Our fundraising plans and challenges for 2018

We also look forward to planning and delivering a capital appeal with the key aim of refurbishing and equipping the hospice for the 21st century.

JJ and friends celebrating at the finish line of their London to Paris fundraiser

Our amazing volunteers fulfil the equivalent of 22 full-time roles


Our volunteers

Volunteers play a vital role in supporting our work. Every hour of time a volunteer gifts to us helps to deliver more care to people facing death or bereavement in our community. Without this support, the hospice would not be able to function.

Volunteers are involved in all aspects of our work and roles include local hospice ambassadors, receptionists, gardeners, complementary therapists, retail assistants, bereavement support team members, drivers, fundraising support group members, befrienders, meal servers, flower arrangers and many more.

Richard*, who has been supported through our Wellbeing services over the past year, has benefitted from Volunteer Befriending. He enjoys regular telephone calls and a monthly group ‘Walk and Talk’ through the beautiful Sheffield Park Gardens.

‘I appreciate being able to offload about current problems or just talk about gardening or current affairs during the befriender telephone calls – I’m at home a lot more now due to my illness, so having somebody to chat to every week keeps the loneliness at bay and gives my wonderful wife a much-needed break. We attend the ‘Walk and Talks’ too when we can. The gentle exercise is beneficial and both my wife and I have made dear friends there.’

Over 400 volunteers give their time to make it possible for us to reach further, do more, raise more and be there for more people. These volunteers include members of our Board of Trustees, who are responsible for the overall control and direction of the hospice.

* name changed

Whether days or decades, minutes or months, every moment of volunteering matters.


Financial review

Income Donations £ 1,274,151

Legacies £ 900,019

Grants £ 720,159

Shops £ 1,107,256

Income from charitable activities £ 417,520

Investment income £ 20,334

Total Income £ 4,439,439

Expenditure Shop costs £ 901,084

Fundraising costs £ 426,538

Charitable activities £ 2,838,221

Investment management costs £ £3,058Total Expenditure £ 4,168,901

Total Income

2018

Total Expenditure

2018

29%

20%16%

25%

9.5%

0.5%

22%

10%

68%

The total income of the Group in 2017/18 was £4.4m, compared to £3.6m in 2016/17. Notable changes to Group income in 2017/18 compared to the previous year were:-

• A substantial increase in legacy income to £900,000 (2016/17 £202,000), with several large unexpected legacies being received in the latter part of the year, which exceeded our expectations. This is a significant event which has had the financial effect of bolstering our reserves position.

• Awards from other Trust and grant makers rose by 50% to £179,364 (2016/17 £120,039). These grants result from successful bids made by our fundraising team.

The principal source of income was donations raised through fundraising and legacies. Income for 2017/18 was generated through the efforts of our committed fundraising team and the generosity of supporters, without which the hospice’s charitable activities would not have been achievable.


The cost of providing Charitable Activities (excluding fundraising costs) was reduced by £225,386 to £2,838,221 (2016/17 £3,063,607). 82% of these costs relate to salaries. This reduction was predominantly achieved by reducing staffing levels whilst protecting services.

The Charity benefitted from a contribution of £206,000 (2016/17 £214,000) from its retail activities before taking into account the £19,000 of administrative support costs charged to Shops from the Charity in Group accounts. As in other areas, our dedicated retail staff and volunteer team made this contribution possible.

The Group reported a surplus of £270,000 in 2017/18, after depreciation and before gains on investments (2016/17 deficit £602,000). The surplus for the year before depreciation of £423,000 (2016/17 deficit £432,000) reflects the significant increase in legacy income and efficiencies made in expenditure.

Investments The Charity’s key objective in relation to its investment portfolio is the protection of its investments in real terms.

The Board has appointed Rathbones as its investment adviser. The Charity has a full discretionary management agreement with Rathbones, based on achieving a balance of capital growth and income within a low risk environment.

Given the nature of the service provided by the Charity and the evidence-based links between a number of serious health conditions and tobacco, no direct investment is made in any company that produces tobacco products.

Investment Performance The period from 1 April 2017 to 31 March 2018 saw a fall in the capital value of the FTSE 100 of 3.6%. By contrast the St Peter and St James Charitable Trust portfolio fell by 1.9% in capital terms.

The income generated by the portfolio of £12,703 represents an income yield of 2.9%. If we include this in our performance calculations, the portfolio rose in value by 1.0% against a rise in the FTSE of 0.2%.

The portfolio is managed in line with the Trustees’ conservative approach to risk (2 on a scale of 1 to 6).

Cash Deposit PolicyOther funds are held in short-term, interest-bearing cash accounts with major UK banks. Deposits in any one banking group are subject to a maximum of £350,000 and are placed for no longer than twelve months. Following the year end, the Trustees agreed to increase this limit to £450,000. Term deposits are placed if cash flow projections show that the funds are temporarily surplus to operational requirements.


Reserves The Trustees’ policy in respect of free reserves (‘General Funds’) is that, in view of the ongoing increase in the scale of the Charity’s activities and cost base, the minimum level of free reserves should be £1m with the objective to increase the minimum free reserves level to represent six months’ full running costs. In addition, in recognition of the ongoing need for capital investment to replace and, where appropriate, enhance the Charity’s assets, Trustees have created a separate reserve for this purpose, which is not part of free reserves.

The Trustees’ objectives are:

• that free reserves should be held at a sum sufficient to avoid an unacceptable level of disruption to services in the event of an unexpected downturn in income; and

Total Funds of the Group at 31 March 2018 Other Designated Funds £ 208,640

Tangible Fixed Assets £ 2,278,173

Forecast Deficit Provision Fund £ 156,331

Group General Funds £ 1,079,547

Restricted Funds £ 41,179

Total funds £ 3,763,870

• to recognise the need for continuing investment to maintain the quality of the Charity’s assets to an adequate standard

The Group’s free reserves increased to £1,079,547 (equivalent to 3.6 months’ running costs) as at 31 March 2018 after designating a Forecast Deficit Provision Fund of £156,331 (2016/17 £288,000) and a Capital Replacement Fund of £207,000 (2016/17 £10,000). Estimates of running costs are based on the operating budget for the following year.

The recent upturn in receipts has allowed us to increase our reserves at the year end to above the minimum level. In the next financial period we will implement plans to grow and diversify income streams. Continued legacy campaigns will also help to grow legacy receipts in the longer term.

Total Funds of the Group at 31 March 2018

5%

61%4%

29%

1%


Monitoring The Reserves position is monitored by the Finance Committee, which reports to the Board.

Total FundsThe total funds held at the end of the reporting period (31 March 2018) were £3,763,870 for the Group and £3,746,851 for the Charity. It should be noted that, of these funds, £2,278,173 represents the value of land and buildings used for the provision of the Charity’s hospice services and is therefore not available to spend for operational purposes.

Tangible Fixed Assets are Designated Funds that can only be realised through disposal of those assets. The Forecast Deficit Provision Fund is a Designated Fund set aside to cover any future deficit.

The split between general, restricted and designated funds held by the Group at the end of the reporting period is illustrated by the table on page 32.

Trustees’ Responsibilities in Relation to the Financial Statements The Trustees are responsible for preparing a Trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company, the Group,

and of the incoming resources and application of resources; including the income and expenditure of the Group for that period. In preparing the financial statements, the Trustees are required to:

• select suitable accounting policies and apply them consistently

• observe the methods and principles in the Charities SORP

• make judgements and estimates that are reasonable and prudent

• state whether UK applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements

• prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and the Group; hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable


company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to Disclosure to AuditorsIn so far as the Trustees are aware at the time of approving the Trustees’ annual report:

• there is no relevant information, being information needed by the auditors in connection with preparing their report, of which the Group’s auditors are unaware, and;

• the Trustees, having made enquiries of fellow Directors and the Group’s auditors that they ought to have individually taken, have each taken all steps that he/she is obliged to take as Director in order to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AuditorsA resolution re-appointing Keymer Haslam & Co as auditors to the Charity will be proposed at the Annual General Meeting.

AcknowledgementsThe Trustees extend their thanks to:

• All members of staff and volunteers for their hard work and dedication to the Charity

• All Support Groups and the Friends of St Peter and St James who raised funds for the Charity during the year

• All the individuals, corporate bodies, Trusts, and media organisations too numerous to mention who have so generously helped and supported the Charity during the year

This report, and the Strategic Report included therein, was approved by the Board on 18 July 2018.

Keith Banbury Chairman


We have audited the financial statements of St Peter and St James Charitable Trust for the year ended 31 March 2018 which comprise the Group Statement of Financial Activities, the Group and the Parent Charitable Company Balance Sheet, the Group and the Parent Charitable Company Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’’.

Respective responsibilities of Trustees and auditorAs explained more fully in the Trustees’ Responsibilities Statement set out on page 33, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Group’s and the Parent Charitable Company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report of the Trustees to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statementsIn our opinion the financial statements:

• give a true and fair view of the state of the Group’s and the Parent Charitable Company’s affairs as at 31 March 2018, and of the Group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

Independent Auditor’s Report


• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and;

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

Opinion on other matters prescribed by the Companies Act 2006In our opinion the information given in the Annual Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:

• the Parent Charitable Company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the Parent Charitable Company 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.

Use of our ReportThis report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the Charitable Company’s Trustees, as a body, in accordance with regulations made under section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charitable Company’s members and its Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Alec Burgess ACA Senior Statutory Auditor

For and on behalf of Keymer Haslam & Co Chartered Accountants and Registered Auditors 4/6 Church Road Burgess Hill West Sussex RH15 9AE

6th September 2018

36


Consolidated statement of financial activities (incorporating a consolidated income and expenditure account) for the year ended 31 March 2018 2018 2018 2018 2017 Unrestricted Restricted Total Funds Total Funds Note £ £ £ £Income Donations and legacies: Donations 2 1,274,151 – 1,274,151 1,256,965Legacies 3 900,019 – 900,019 202,205Grants 4 570,283 149,876 720,159 686,210

Total donations and legacies 2,744,453 149,876 2,894,329 2,145,380 Trading activities: Shops 5 1,107,256 – 1,107,256 1,013,341Income from charitable activities 6 313,221 104,299 417,520 447,133Investment income 7 20,334 – 20,334 20,312Other income 8 – – – 6,769

Total income 4,185,264 254,175 4,439,439 3,632,935 Expenditure Shop costs 9 901,084 – 901,084 799,511Fundraising Costs 9 426,538 – 426,538 371,007Investment management costs 9 3,058 – 3,058 1,263

Costs of raising funds 1,330,680 – 1,330,680 1,171,781 Expenditure on charitable activities 9 2,647,799 190,422 2,838,221 3,063,607 Total expenditure 9 3,978,479 190,422 4,168,901 4,235,388 Net income for the year before gains and losses on investments 206,785 63,753 270,538 (602,453)Net (losses)/gains on investments (4,616) – (4,616) 41,907 Net income/(expenditure) for the year 202,169 63,753 265,922 (560,546)Transfers between funds 54,462 (54,462) – –Net movement in funds 256,631 9,291 265,922 (560,546) Reconciliation of funds Total funds brought forward 3,466,060 31,888 3,497,948 4,058,494 Total funds carried forward 3,722,691 41,179 3,763,870 3,497,948

All amounts relate to continuing activities of the group. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes to the accounts are shown on pages 40 to 61.


Group Group Charity Charity 2018 2017 2018 2017 Note £ £ £ £Fixed assets Tangible assets 15 2,278,173 2,418,282 2,278,173 2,356,632Investments 16 428,584 436,807 518,584 526,807

2,706,757 2,855,089 2,796,757 2,883,439 Current assets Stock – 8,285 – –Debtors 17 211,210 165,824 202,520 178,222Current asset investments 586,519 435,903 586,519 435,903Cash at bank and in hand 422,873 221,812 379,843 157,664

1,220,602 831,824 1,168,882 771,789Liabilities Creditors: amounts falling due within one year 18 (163,489) (188,965) (218,788) (171,051)

Net current assets 1,057,113 642,859 950,094 600,738

Total assets less current liabilities 3,763,870 3,497,948 3,746,851 3,484,177

Total net assets 3,763,870 3,497,948 3,746,851 3,484,177

The funds of the charity: Restricted income funds 20 41,179 31,888 41,179 31,888 Unrestricted funds Designated funds 21 2,643,144 2,719,816 2,731,504 2,744,300General funds 21 1,079,547 746,244 974,168 707,989 Total unrestricted 3,722,691 3,466,060 3,705,672 3,452,289

Total funds 22 3,763,870 3,497,948 3,746,851 3,484,177

K Banbury TJP Hancock

The notes to the accounts are shown on pages 40 to 61.

Consolidated balance sheets at 31 March 2018


Group Group Charity Charity 2018 2017 2018 2017 Note £ £ £ £Cash flows from operating activities: Net cash provided by/(used in) operating activities 28 396,732 (365,360) 417,850 (343,756) Cash flows from investing activities: Dividends, interest and rents from investments 20,334 20,312 20,334 20,222Proceeds from the sale of property and equipment – 13,350 – –Purchase of property, plant and equipment (68,998) (54,834) (68,998) (33,886)Proceeds from sale of investments 43,186 103,580 43,186 103,580Purchase of investments (39,577) (111,847) (39,577) (111,847)

Net cash provided by/(used in)investing activities (45,055) (29,439) (45,055) (21,931)

Change in cash and cash equivalents in the reporting period 351,677 (394,799) 372,795 (365,687)

Cash and cash equivalents at the beginning of the reporting period 657,715 1,052,514 593,567 959,254

Cash and cash equivalents at the end of the reporting period 29 1,009,392 657,715 966,362 593,567

The notes to the accounts are shown on pages 40 to 61.

Statement of cash flows and consolidated statement of cash flowsfor the year ended 31 March 2018


1 Accounting policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the

preparation of the financial statements are as follows:

a) Basis of preparation The Trust meets the definition of a public benefit entity under FRS 102. The financial statements have been

prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts 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) the Charities Act 2011, the Companies Act 2006, and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the Charity.

b) Going concern The financial statements are prepared on a going concern basis. The Trustees believe that there are

no material uncertainties about the Charity’s ability to continue as a going concern. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern.

c) Legal status of the Charity The Charity is a company limited by guarantee and has no share capital. In the event of the Charity being

wound up, the liability in respect of the guarantee is limited to £10 per member of the Charity.

d) Group financial statements The financial statements consolidate the results of the Charity, its wholly owned subsidiary, St Peter and

St James Hospice Shops Ltd and the Friends of St Peter and St James on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the Charity has not been presented because the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

e) Fund accounting Unrestricted funds

Unrestricted funds, which have not been designated for other purposes, are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.

Designated funds Designated funds are unrestricted funds of the Charity which the Trustees have decided at their discretion to set aside to use for a specific purpose. The aim and purpose of each designated fund is set out in the notes to the financial statements.

Restricted funds Restricted funds are funds which are to be used in accordance with specific restriction imposed by donors or which have been raised by the Charity for particular purposes. The aim and use of each restricted fund is set

Notes to the accounts


out in the notes to the financial statements. Where possible, the cost of administering such funds is charged against the specific fund.

Fixed Assets Fixed assets purchased without further restrictions are transferred to unrestricted funds in the year of purchase.

f) Income recognition All incoming resources are included in the SOFA when the Charity is legally entitled to the income and the

amount can be quantified with reasonable accuracy. Legacies receivable are included in the accounts when they satisfy the following three criteria:

Entitlement – control over the rights or other access to the economic benefit has passed to the Charity

Probable – it is more likely than not that the economic benefits associated with the transaction or gift will flow to the Charity

Measurement – the monetary value or amount of the income can be measured reliably and the costs incurred for the transaction and the costs to complete the transaction can also be measured reliably.

When donors impose conditions, which require a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Residuary legacies In relation to residuary gifts, as at the year end, the income recognition criteria above will be treated as satisfied if:

1 Notification or copy of the Will received;

2 Confirmation of the Grant of Probate;

3 Accounts received showing sufficient funds in the estate (either schedule of assets & liabilities or preferably estate accounts); and

4 Value of final gift confirmed.

Pecuniary legacies The criteria for pecuniary legacies over £5,000 are the same as gifts of the same or greater value. Gifts below this level will be recorded by date of receipt.

Gifts in Kind Material gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the Charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Donated services and facilities Material donated professional services and donated facilities are recognised as income when the three criteria of Entitlement, Probability and Measurement above have been met. In accordance with the Charities SORP (FRS 102), non-professional volunteer time is not recognised in the accounts.



g) Expenditure and irrecoverable VAT All expenditure is accounted for on an accruals basis and has been classified under headings that

aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Costs of Raising Funds Costs of raising funds comprises fundraising costs incurred in seeking donations, grants and legacies, and costs of fundraising activities; shop costs comprise costs of goods sold, commercial trading costs, and their associated support costs; and investment management fees. Fundraising costs do not include the costs of generating and reporting management information in respect of the charitable activities.

Expenditure on charitable activities Expenditure on charitable activities includes the costs of providing specialist palliative care and support, community services, research and other educational activities undertaken to further the purposes of the Charity and their associated support costs.

Support Costs Support costs are those that assist the work of the Charity but do not directly represent charitable activities – i.e. incurred directly in support of expenditure on the objects of the Charity. They include:

1 Administration costs – Includes the clinical database, clinical administration, general administration, IT, information governance, management and HR (includes employee and volunteer support and administration, staff and volunteer mandatory training costs plus clinical staff CPD).

2 Finance costs – Includes payroll and accounts

3 Governance costs – Those costs incurred in connection with compliance with constitutional and statutory requirements and strategic planning of the Charity.

Allocation Support costs are allocated to each of the activities on one of the following bases: HR and volunteers’ costs based on headcount and all other costs based on estimate of resource used.

Irrecoverable VAT Irrecoverable VAT is not charged as a cost against the activity for which the expenditure was incurred, but is charged as a separate overhead.

h) Volunteers In accordance with FRS 102 and the Charities SORP (FRS), the economic contribution of non-professional

volunteers is not recognised in the accounts. Further detail of their contribution is provided in the notes to these financial statements and in the Strategic Report.


i) Fixed assets Assets costing more than £1,000 are capitalised at their historical cost when purchased. Costs include

expenditure directly attributable to making the asset capable of operating as intended.

Depreciation is provided to write off the cost or revalued amount of all fixed assets on a reducing balance basis over their expected economic useful lives as follows:

Freehold land Nil

Freehold property 5%

Fixtures, fittings and equipment 15% or 20%

Computer equipment 33%

Motor vehicles 25%

Equipment (Shops) 25%

j) Investments Fixed Asset Investments

Fixed Asset Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price, except for the shares in the trading subsidiary which are carried at cost. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Current Asset Investments Current asset investments are short term liquid investments, which are not required to cover day to day running costs. These comprise cash on deposit and cash equivalents held with other organisations other than our current bankers.

The Charity does not acquire derivatives or other complex financial instruments.

The main form of financial risk faced by the Charity in relation to investments is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

k) Stock Stock of retail purchased goods is included at the lower of cost or net realisable value. Donated items of

stock for resale are not included in the financial statements until they are sold because the Trustees consider it impractical. Stock is donated through a range of different outlets. To assess the amount of donated stock and undertake a coordinated stock take would incur undue cost for the Charity which would far outweigh the benefit.



l) Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered.

Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.

m) Cash at bank and in hand Cash at bank and cash in hand comprises cash required for the daily running costs of the Charity. The

majority of these funds are held with our current bankers and are available for immediate access.

n) Creditors Creditors are recognised where the Charity has a present obligation resulting from a past event that will

probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial

instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

p) Pensions The Charity contributes to the defined benefit scheme (NHS Superannuation) for eligible staff and operates a

defined contribution scheme for other staff. The contributions to the schemes are recognised as an expense in the SOFA as they become payable.

The NHS scheme may be defined as a defined benefit multi-employer plan, however, the Charity does not have any share of the underlying assets or liabilities. The contributions are determined by the Government actuary, and there is no further obligation from the Charity other than the initial contributions due.

q) Operating leases Operating leases are recognised over the period in which the cost is incurred.

r) Taxation The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and

therefore it meets the definition of a charitable company for UK corporation tax purposes.



2 Donations 2018 2017 £ £

General Donations and Fundraising Events 1,136,555 1,132,340 Gift Aid 93,273 97,142 Other 44,323 27,483

1,274,151 1,256,965

The income from donations was £1,274,151 (2017: £1,256,965) of which £1,274,151 was unrestricted (2017: £1,204,207) and £nil restricted (2017: £52,758).

3 Legacies The income from legacies was £900,019 (2017: £202,205) of which £900,019 was unrestricted (2017:

£202,205) and £nil restricted (2017: £nil).

4 Grants received 2018 2017 £ £

NHS Clinical Commissioning Group Grants 540,795 534,911Big Lottery Fund – 29,120

Trust and Other Fundraising Grants 179,364 120,039 Other Grants – 2,140 720,159 686,210

Total income from grants received was £720,159 (2017: £686,210) of which £570,283 was unrestricted (2017: £548,651) and £149,876 restricted (2017: £137,559).

Included in general donations and grants received was £745 from Haywards Heath Town Council, £1,000 from Lewes Town Council, £20,000 from the Garfield Weston Foundation and £13,931 from West Sussex County Council Members Big Society Fund.

Government Grants Government grants received from NHS Clinical Commissioning Groups (“CCGs”) were £540,795 (2017:

£534,911), of which £499,563 was unrestricted (2017: £494,127) and £41,232 restricted (2017: £40,784). Restricted grants were for Specialist Palliative Care cover for weekends and Bank Holidays.

Included in Trust and Other Fundraising Grants were government grants from County Councils of £17,076 (2017: £2,450). Of this £300 (2017: £200) was unrestricted and £16,776 (2017: £2,250) was restricted to various appeals in direct relation to our objects.



5 Trading Activities: Shops 2018 2017 £ £

Shop income from sale of donated goods and new goods 894,543 859,571 Income from Shops donated Goods Gift Aid Scheme

– Sale of goods from Shops Donated Gift Aid Scheme 170,166 122,811 – Gift aid income from sale of goods on an agency basis 42,547 30,959

Total income from Trading Activities: Shops 1,107,256 1,013,341 Shops costs net of Charity administration fee 865,668 781,139 Trust support costs allocated to Shops 35,413 18,372 Total expenditure from shops 901,081 799,511

Net Profit arising from shops 206,175 213,830

All shop income in both the current and previous year relates to unrestricted funds.

6 Income from charitable activities Government Other Funding Funding 2018 2017 £ £ £ £

Continuing Care 236,370 70,969 307,339 342,995 Befriender Service 33,691 – 33,691 28,438 Education and Training 17,000 5,882 22,882 22,675 External Clinical Services 53,608 – 53,608 53,025 Total 340,669 76,851 417,520 447,133

The income from charitable activities was £417,520 (2017: £447,133) of which £313,221 was unrestricted (2017: £353,620) and £104,299 restricted (2017: £93,513).

Government funding Continuing Care income includes government funding from CCGs of £236,370 (2017: £257,685) to cover

residential inpatient care for patients, with individual funding agreed for each patient.


The Befriender Service is restricted funding provided by West Sussex County Council (“WSCC”) and East Sussex County Council (“ESCC”) and the aim of the service is to support carers of patients of the Charity and improve their wellbeing. The WSCC contract began on 1 April 2014 for a period of three years and has been renewed for another three years. The ESCC contract commenced on 1 Oct 2013 for a period of 3 years and has been renewed for another three and a half years.

Education and Training includes a government grant from Health Education England Kent Surrey Sussex (“HEEKSS”) of £17,000 (2017: 12,050) for development of a needs assessment and staff end of life communication training. External Clinical Services funding from NHS Horsham & Mid-Sussex CCG of £53,608 (2017: £53,025) is restricted for the provision of palliative care consultant sessions at Princess Royal Hospital, Haywards Heath.

7 Investment income 2018 2017 £ £

Rental Income 1,270 1,427 Dividends – equities 12,703 11,115 Bank Interest 6,361 7,770 20,334 20,312

Investment income received was £20,334 (2017: £20,312) of which £20,334 was unrestricted

8 Other Income 2018 2017 £ £

Profit on sale of tangible fixed assets – 6,769

– 6,769

Other income in both the current and previous year relates to unrestricted funds.



9 Analysis of Expenditure Direct Costs Support costs (note 10) 2018 2017 £ £ £ £

Costs of Raising Funds Shop Costs 863,921 37,163 901,084 799,511Fundraising Costs 397,085 29,453 426,538 371,007Investment Management Costs 3,058 – 3,058 1,263

Total Cost of Raising Funds 1,264,064 66,616 1,330,680 1,171,781 Charitable Activities Hospice 1,002,682 144,403 1,147,085 1,257,080Community Care 412,494 44,589 457,083 485,443Wellbeing 204,971 58,130 263,101 286,456Continuing Care 794,961 105,381 900,342 964,963External Clinical Services 59,580 11,030 70,610 69,665

Total Charitable Activities 2,474,688 363,533 2,838,221 3,063,607

Total 3,738,752 430,149 4,168,901 4,235,388

Of the total expenditure of £4,168,901 (2017: 4,235,388), all expenditure for raising funds of £1,330,680 (2017: £1,171,781) was unrestricted. Of charitable activities expenditure £2,838,221 (2017: £3,063,607); £190,422 (2017: £311,766) was restricted and £2,647,799 (2017: £2,751,841) was unrestricted.


10 Analysis of support costs Governance Administration Finance costs 2018 2017 £ £ £ £ £

Shop Costs 19,396 6,615 11,152 37,163 20,122Fundraising Costs 12,739 4,961 11,753 29,453 34,848

Cost of generating funds 32,135 11,576 22,905 66,616 54,970 Hospice 77,854 28,941 37,608 144,403 203,568Community Care 21,999 4,961 17,629 44,589 51,119Wellbeing 29,127 11,374 17,629 58,130 65,005Continuing Care 55,416 26,460 23,505 105,381 125,719External Clinical Services 10,880 150 – 11,030 11,030

Charitable services 195,276 71,886 96,371 363,533 456,441

Total 227,411 83,462 119,276 430,149 511,411

Prior year totals 300,014 85,349 126,048

11 Governance costs 2018 2017 £ £

Management 111,225 117,887Audit and Accountancy Fees 4,750 4,750Other Professional Fees 2,800 2,911Other 500 500

119,275 126,048



12 Analysis of staff costs and key management personnel 2018 2017 £ £

Wages and salaries 2,652,640 2,764,037Social security costs 225,846 221,080Pension costs 188,432 181,754

3,066,918 3,166,871

The Trustees were not paid and did not receive any other benefits from employment with the Hospice or its subsidiary in the year (2017: £nil). One Trustee was reimbursed expenses of £294 for travel and training during the year (2017: £nil). No Trustee received payment for professional or other services supplied to the Charity (2017: £nil).

The average monthly head count was 134 (2017: 138) and analysis of the staff employees in the year were:

2018 2017 Actual Full time Actual Full time Number equivalent Number equivalent

Direct charitable services 83 54 90 61Fundraising 12 10 10 7Shops 28 24 27 24Support services 11 9 11 8

Total 134 97 138 100

Throughout the year we also had 30 (compared to 29 in 2017) bank staff available to provide support in the event of short notice absences.

The number of employees whose total employee benefits, excluding pension contributions were over £60,000, (classified within bands of £10,000) within the year, are as follows: 2018 2017

£60,000-£69,999 1 0 £70,000-£79,999 0 1

£80,000-£89,999 1 2 £90,000-£99,999 1 0

Pension contributions relating to those staff earning over £60,000 totalled £26,713 in the current year (2017: £34,209).


Pension Contributions The Charity contributes to the NHS Superannuation scheme for eligible staff and operates a defined contribution scheme for other staff. The pension charge for the year represents contributions payable by the Charity to the schemes and amounted to £188,432 (2017: £181,754). At 31 March 2018 £24,107 was outstanding in respect of pension contributions (2017: £26,952).

Key Management Personnel FRS 102 defines ‘key management personnel as those persons having authority and responsibility for planning, directing and controlling the activities of the Charity, directly or indirectly, including those members of staff who are the senior management personnel to whom the Trustees have delegated significant authority or responsibility in the day-to-day running of the charity’. We have interpreted this to be the Trustees and the Chief Executive whose employee benefits for both the Charity and the Group were £76,128 in total (Prior year: £81,147).

Volunteers The Group had approximately 400 volunteers during the year (Prior year: 430), of which 159 (Prior year: 184) worked in our retail operations and 241 (Prior year: 246) supported the charitable and administrative work of the Charity. We are extremely grateful for all their time and effort.

13 Net incoming resources 2018 2017 £ £

Net incoming resources is stated after charging:

Depreciation 157,377 169,985Auditors remuneration:

– for audit services 4,750 4,750– for accountancy services – –

Profit / (loss) on sale of fixed assets 11,088 6,769Operating lease rentals 155,238 152,749

14 Taxation The company is a registered charity and as such is exempt from taxation on its income and gains falling with section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied for charitable purposes.



15 Tangible fixed assets Group Freehold Fixtures Motor property and fittings IT Equipment Vehicles Total £ £ £ £ £Cost At start of year 3,306,057 855,533 130,245 117,883 4,409,718Additions 45,981 23,017 – – 68,998Disposals (60,137) (40,074) – (43,200) (143,411)

At end of year 3,291,901 838,476 130,245 74,683 4,335,305 Depreciation At start of year 1,159,805 638,382 112,165 81,084 1,991,436Charge for the year 100,570 42,692 7,416 6,699 157,377Disposals (31,612) (29,760) – (30,309) (91,681)

At end of year 1,228,763 651,314 119,581 57,474 2,057,132 Net book value at the end of the year 2,063,138 187,162 10,664 17,209 2,278,173

Net book value at the start of the year 2,146,252 217,151 18,080 36,799 2,418,282 Charity Freehold Fixtures Motor property and fittings IT Equipment Vehicles Total £ £ £ £ £Cost At start of year 3,245,920 815,459 130,245 74,683 4,266,307Additions 45,981 23,017 – – 68,998Disposals – – – – –

At end of year 3,291,901 838,476 130,245 74,683 4,335,305 Depreciation At start of year 1,130,377 612,061 112,165 55,072 1,909,675Charge for the year 98,386 39,253 7,416 2,402 147,457Disposals – – – – –

At end of year 1,228,763 651,314 119,581 57,474 2,057,132 Net book value at the end of the year 2,063,138 187,162 10,664 17,209 2,278,173

Net book value at the start of the year 2,115,543 203,398 18,080 19,611 2,356,632


Freehold land and buildings includes freehold land of £180,000 that is not depreciated. The market value of the land has been valued by the directors at £345,000.

16 a) Investments – Group and Charity 2018 2017 £ £

At start of the year 436,807 386,633

Additions 29,678 114,062Disposals (43,186) (103,580)Movement in cash 9,899 (2,215)Unrealised Gains/(loss) on Revaluation (4,614) 41,907

At end of the year 428,584 436,807

16 b) Analysis of investments 2018 2017 £ £

Listed investments 413,702 431,824Other investments 300 300Cash held as part of the investment portfolio 14,582 4,683 Total group 428,584 436,807

Equity investment in subsidiary 90,000 90,000

Total charity 518,584 526,807

All investments are held in the UK The historical cost of the listed and other investments is £371,785 (prior year: £369,149)



16 c) Trading subsidiary The Charity owns a subsidiary, St Peter and St James Hospice Shops Limited (company number 3146736), whose main purpose is to sell goods to raise funds for the Charity and which pays all of its profits to the Charity under the gift aid scheme. The Charity holds 90,000 ordinary shares of £1 each in its wholly owned trading subsidiary company, St Peter and St James Hospice Shops Limited, which is incorporated in the United Kingdom. These are the only shares allotted, called up and fully paid. The activities and results of this company are summarised as follows:

Income statement 2018 2017 £ £

Turnover 931,274 859,571Cost of sales (26,809) (21,998)

Gross profit 904,465 837,573Operating expenses (857,414) (770,744)

Profit on ordinary activities 47,051 66,829Donation to hospice (41,576) (67,000)

Increase/(decrease) in the retained profit for the year 5,475 (171)

Balance sheet 2018 2017 £ £

Fixed Assets – 61,650Current Assets 116,872 115,365Liabilities (11,491) (77,109)

Net assets 105,381 99,906 Represented by: Capital 90,000 90,000Reserves 15,381 9,906

105,381 99,906

An administration charge of £18,552 by the Charity has been removed from expenses in the consolidated accounts (2017: £18,372)


17 Debtors Group Group Charity Charity 2018 2017 2018 2017 £ £ £ £

Trade debtors 34,480 76,730 34,480 76,730VAT recoverable 20,313 21,446 12,153 15,026Amount due from subsidiary – – – 59,195Other debtors and prepayments 156,417 67,648 155,887 27,271

211,210 165,824 202,520 178,222

18 Creditors: amounts falling due within one year Group Group Charity Charity 2018 2017 2018 2017 £ £ £ £

Trade creditors 42,665 51,855 41,064 43,306Taxation and social security 53,375 56,254 46,759 49,998Amount due to subsidiary – – 66,790 –Other creditors 41,258 27,013 41,258 26,870Accruals and deferred income 26,191 53,843 22,917 50,877

163,489 188,965 218,788 171,051

19 Operating Leases 2018 2017

£ £

Not later than one year 163,504 163,504Later than one and not later than five years 368,531 368,531Later than five years 26,187 26,187 The Trust has total commitments underoperating leases as follows: : 558,222 558,222



20 Restricted funds

Balance at Balance at 1 April 2017 Income Expenditure Transfers 31 March 2018 £ £ £ £ £

Charity Restricted Revenue Fund 11,483 124,287 (108,432) – 27,338Community Nursing Fund – 81,990 (81,990) – –Restricted Capital Fund 20,405 47,898 – (54,462) 13,841

Total Charity Restricted 31,888 254,175 (190,422) (54,462) 41,179

Total Group Restricted 31,888 254,175 (190,422) (54,462) 41,179

Restricted Revenue Fund The Restricted Revenue Fund represents monies given to the Charity for specific purposes for the purchase of small items and revenue expenditure.

The Restricted Revenue Fund includes funds for the Befriender Service, which represents monies received from East Sussex and West Sussex County Councils to support and improve the wellbeing of those caring for someone with a life limiting illness.

The Restricted Revenue Fund also includes funds for External Clinical Services from our contract with NHS Horsham & Mid Sussex CCG to provide palliative care consultant sessions at our local hospital and services to train students in palliative care.

Community Nursing Fund The Community Nursing Fund represents one off restricted donations and ongoing grants to support our specialist Community Nurse team.

Restricted Capital Fund The Restricted Capital Fund represents monies given for specific capital appeals.


21 Unrestricted funds Balance at Expenditure Balance at 1 April 2017 Income and gains Transfers 31 March 2018 £ £ £ £ £Designated funds Friends of St Peter and St James 3,866 4,774 (7,000) – 1,640Tangible Fixed Assets 2,418,282 – – (140,109) 2,278,173Forecast Deficit Provision Fund 287,668 – – (131,337) 156,331Capital Replacement Fund 10,000 – – 197,000 207,000

Total designated funds 2,719,816 4,774 (7,000) (74,446) 2,643,144

General fund Trust 707,989 3,276,012 (3,077,105) 67,271 974,167General fund Shops 38,255 904,478 (898,990) 61,637 105,380

Total General Fund 746,244 4,180,490 (3,976,095) 128,908 1,079,547

Total Unrestricted funds 3,466,060 4,185,264 (3,983,095) 54,462 3,722,691

Designated funds: Unrestricted funds in the Friends of St Peter and St James have been set aside as designated funds in the Group accounts to meet the future needs for medical equipment and associated costs of the Charity.

The Tangible Fixed Asset Fund represents the net book value of the tangible fixed assets held by the Charity, which includes any building work-in-progress. Fixed assets are integral to the provision of charitable activities and therefore not readily available to spend (e.g. hospice buildings).

A sum equivalent to the forecast deficits in the 2018/19 – 2021/22 projections has been designated in the Forecast Deficit Provision Fund. Recognising the ongoing need for capital investment to replace and, where appropriate, enhance the Charity’s assets, the Trustees have established the Capital Replacement Fund which represents costs to 2022 as recommended in the Stock Condition Survey.



22 Net assets by funds

General Designated Restricted Total funds funds funds funds £ £ £ £

Investments 428,584 – – 428,584Tangible fixed assets – 2,278,173 – 2,278,173Current assets 814,452 364,971 41,179 1,220,602Creditors falling due in less than one year (163,489) – – (163,489) 1,079,547 2,643,144 41,179 3,763,870

23 Related party transactions Donations received from related parties (defined as Trustees and key management personnel) totalled £2,461 (2017: £ 2,461)

The following transactions took place between the Charity and its wholly owned subsidiary, Shops: – The transfer under gift aid of the trading profits of the Shops to the Charity of £41,578 (2017: £67,000) – The transfer of an administration charge from Shops to the Charity of £18,552 (2017: £18,372) Balances outstanding from the Shops to the Charity as at 31 March 2018 were £nil (2017: £59,195)

24 Contingent assets – legacy income As well as the amount recognised in the financial statements, the Charity was also notified prior to the year-end of legacies currently in administration with an estimated probate value based on information available at the time of £866,000 (2017: £360,000)


25 Financial performance of the Charity The consolidated statement of financial activities includes the results of the Hospice’s wholly owned trading subsidiary St Peter and St James Hospice Shops Limited and the Friends of St Peter and St James. The summary performance of the Charity alone is as follows: 2018 2017

£ £

Income 3,570,510 2,910,883Total expenditure 3,307,836 3,412,341

Net surplus /(deficit) 262,674 (501,458)

Total funds brought forward 3,484,177 3,985,635

Total funds carried forward 3,746,851 3,484,177 Represented by: Restricted funds 41,179 31,888Unrestricted funds 3,705,672 3,452,289

3,746,851 3,484,177



26 Financial performance of the Friends of St Peter and St James The Friends of St Peter and St James is a registered charity, number 288522, whose objects are to relieve the patients of the Hospice who are sick, convalescent, disabled, handicapped or infirm and generally to support the charitable work of the Hospice to whom the Friends of St Peter and St James are ultimately responsible. A summary of the financial activities of the Friends of St Peter and St James is given below and these have been consolidated into the group accounts.

Unrestricted Restricted 2018 2017 £ £ £ £

IncomeDonations and subscriptions 4,243 – 4,243 4,445Gift Aid 531 – 531 536Investment income – – – 90

Total income 4,774 – 4,774 5,071 Resources expended – charitable activities 7,000 – 7,000 63,987

Net movement in funds (2,226) – (2,226) (58,916)Funds brought forward 3,866 – 3,866 62,782

Funds carried forward 1,640 – 1,640 3,866 Current Assets Debtors 530 – 530 536Cash at bank 1,110 – 1,110 3,330

Total net assets 1,640 – 1,640 3,866 Funds of the Charity Unrestricted Funds 1,640 – 1,640 3,866Restricted Funds – – –

Total Funds 1,640 – 1,640 3,866

27 Contingent Liabilities In July 2012 the Charity received £44,684 in relation to a complex estate distribution, for which the Charity

has been required to give an indemnity to the executor of the estate should there be a counter-claim. The Trustees believe the likelihood of a claim being made to be remote and accordingly no provision is to be made in these accounts.


28 Reconciliation of net income/(expenditure) to net cash flow from operating activities Group Group Charity Charity 2018 2017 2018 2017 £ £ £ £

Net income/(expenditure) for the reporting period 265,922 (560,546) 262,674 (501,458)

Adjustments for: Depreciation charges 157,377 169,985 147,457 157,252(Increase)/decrease in stocks 8,285 850 – –(Increase)/decrease in debtors (45,386) 56,354 (24,298) 27,852Increase/(decrease) in creditors (25,476) 36,985 47,737 34,727Loss/(profit) on the sale of fixed assets 51,730 (6,769) – –(Gains)/losses on investments 4,614 (41,907) 4,614 (41,907) Dividends, interest and rents from investments (20,334) (20,312) (20,334) (20,222) Net cash provided by/(used in) operating activities 396,732 (365,360) 417,850 (343,756)

29 Analysis of cash and cash equivalents Group Group Charity Charity 2018 2017 2018 2017 £ £ £ £

Cash at bank and in hand 422,873 221,812 379,843 157,664Short term deposits 586,519 435,903 586,519 435,903

Total cash and cash equivalents 1,009,392 657,715 966,362 593,567


Structure, Governance and ManagementThe St Peter and St James Charitable Trust (the “Charity”) is a Company limited by guarantee, not having a share capital. It is governed by a Board of Trustees within the Memorandum and Articles of Association dated 19 April 1996 as amended by Special Resolutions dated 26 October 2001, 15 September 2004 and 18 September 2013.

St Peter and St James Hospice Shops Ltd (“Shops”) is a wholly owned subsidiary of the Charity whose main purpose is to sell goods to raise funds for the Charity. All profits are donated to the Charity.

The Friends of St Peter and St James (“Friends”) is a registered charity, whose objects are to relieve the patients of the Hospice who are sick, convalescent, disabled, handicapped or infirm and generally to support the charitable work of the Hospice to whom the Friends of St Peter and St James are ultimately responsible.

The totality of the three entities above is for the purpose of this report referred to as the “Group”.

The Group is administered by a Board of Trustees that meets regularly throughout the year. The Chief Executive is appointed by the Trustees to manage the executive operation of the Charity with the support of the Senior Leadership Team and has delegated authority for day-to-day management of the Charity.

Honorary PresidentDame Vera Lynn CH, DBE

PatronsAnne BillsonThe Viscount BrentfordSir Edward CazaletKatie DerhamEdward Fox OBEPiers MorganEdna Sugarman

TrusteesKeith Banbury OBE (Chair)Harriet Creamer (Vice Chair)Dr Nick BarrieKate Birrell Andrew Cook David Crudge Tim Hancock Jo July Deirdre Prower Julie Burgess (appointed 24 May 2017)Christine Gibbons (appointed 19 Jul 2017)


Senior Leadership Team

Chief ExecutiveBarbara Williams (appointed 1 Jun 2017)Caroline Harding (interim May 2017)Colin Burgess (resigned 30 Apr 2017)

Deputy Chief ExecutiveCaroline Harding

Head of Nursing and Clinical Care Anne Jackson

Lead Consultant Dr Charles Skinner

Head of Fundraising Giles Witcomb

Head of Finance Jody Sharp (resigned 31 Mar 2018)

Head of Wellbeing ServicesMelanie Lockett

Head of Retail Therese Wilson

Committees

Quality and Safety Committee Chair: Deirdre Prower‘As chair of the Quality and Safety Committee my role is to ensure that the highest possible standards of care are provided within the

hospice and that there are structures, processes and controls in place to reassure the Board that these standards are maintained’

Finance CommitteeChair: Tim Hancock‘Managing the income and expenses of the Hospice is a key part of ensuring our continuing operations, particularly since

we rely for over 80% of our income on the generosity of our many supporters. The Finance Committee is the medium through which this work is supervised’

Business and Operations CommitteeChair: Harriet Creamer‘As well as providing the highest standard of care to our many service users, we also have to

make sure the Hospice runs effectively as a business. It’s the responsibility of the Business and Operations Committee to oversee the smooth running of its many “behind the scenes” operations – from premises maintenance to Human Resources’


Fundraising and Marketing CommitteeChair: Jo July‘Raising over 80% of our income each year requires hard work, innovation, determination and

dedication from our Fundraising Team. On behalf of the Board the Fundraising and Marketing Committee supports and scrutinises these activities to ensure maximum efficiency and effectiveness.’

Retail Committee and Board Development CommitteeChair: David Crudge‘The Retail Committee oversees the strategic development of shops and on-line trading activities to

ensure that sustainable levels of income are generated, whilst maintaining a visible presence within our local communities from which to engage directly with our supporters and the wider population’

‘The role of the Board Development Committee is to establish and oversee processes that enable Trustees to perform effectively as individuals, and as a team, in providing robust governance of the organisation’

The six Committees each support and report to the full Board. Membership includes both Trustees and members of the Senior Leadership Team.

The Board Development Committee is responsible for the recruitment, induction and training of Trustees and uses a skills and experience audit to determine the requirements to fill any vacancy arising, ensuring the Board and its Committees contain the requisite skills and experience to function effectively.

Trustee vacancies are advertised on the Hospice website and prospective Trustees are shortlisted for interview. Subject to a successful interview, a recommendation is made to the Board which then takes the decision whether to appoint. Prospective Trustees are invited to a Board meeting as observers prior to the appointment decision.

Following appointment, Trustees are provided with governance documentation, current operational reports and are offered a structured induction programme.

The term of office for individual Trustees is four years, with a maximum of one renewal. New Trustees appointed by the Board are subject to formal appointment at the next AGM.

There are seven departments within the Charity each managed by a member of the Senior Leadership Team. The Chief Executive salary is determined using an independent salary survey, developed in association with Hospice UK. Senior Leadership Team salaries are delegated


to the Chief Executive to determine within budgetary constraints.

Collaboration and coordination are key to the patient experience and the Charity strives to maintain good working relationships with local GPs, Clinical Commissioning Groups, local authorities, other healthcare providers, and charities, including other Hospices.

In the next financial year, 2018/19, we will also work with local education establishments, to develop apprenticeship and employment opportunities within our community, to widen the public benefit of our work within the community we serve.

Risk management

The Trustees, together with the Senior Leadership Team, regularly identify and monitor risks to which the Charity is exposed and ensure that appropriate systems and controls are in place to manage significant risks.

Risks are monitored in three key areas:

Quality and Safety (includes clinical)The principal risk is that in the event of a fire, our building may not adequately prevent spread.

Significant work has been undertaken in the year to control this risk, including undertaking physical building improvement works, a complete review of the Fire Policy and evacuation procedure and practical tests of patient evacuation. Further building improvement work is scheduled for 2018/19.

We are grateful for the generous support of the construction charity CRASH and safety experts Hilti and Rana Risk Management, all of whom worked closely with us and gifted money, expertise or materials to help us ensure our building is safe and fit for the future.

Financial The principal risk is expenditure exceeding income over a sustained period, leading to depletion of reserves. To manage this risk, we’ve implemented a four year financial forecasting tool to inform decision-making, strengthened our strategic financial leadership and put into action a campaign to remind people what a positive difference leaving the hospice a legacy in their will can make.

Operations and Governance The principal risk is that we do not have the right structure to deliver against our objectives and provide strong leadership to staff and volunteers.

To manage this risk we have strengthened our financial leadership and have formalised the role of the Deputy Chief Executive. We’ve increased infrastructure support for our subsidiary company Shops Ltd. We are investing in the development of our Senior Leadership Team, using our values to strengthen our team approach.


Registered Office The St Peter and St James Charitable Trust North Common Road North Chailey Lewes East Sussex BN8 4ED

Auditors Keymer Haslam & Co Chartered Accountants 4/6 Church Road Burgess Hill West Sussex RH15 9AE

Bankers Barclays Bank Plc 77 South Road Haywards Heath West Sussex RH16 4LB

Solicitors Adams & Remers Trinity House School Hill Lewes East Sussex BN7 2NN

Investment Managers Rathbones 1 Northgate Chichester West Sussex PO19 1AT


All smiles at our gentle exercise class

St Peter & St James HospiceNorth Common RoadNorth ChaileyLewes BN8 4ED

T: 01444 471598

Registered charity no: 1056114

annual report & accounts 2018 - st peter & st …...8 st peter & st james hospice |...

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