St Peter s Hospice Annual Report and Accounts 2013/14 Registered charity number 269177 Registered company number 1191227
Trustees present their report and the audited consolidated financial statements for the year ended 31 March 2014. This report and financial statements comply with current statutory requirements, with the requirements of the Charity s governing document, and they have been prepared to comply with SORP 2005. Contents Chairman s Report 2 Trustees report Aims and Objectives 4 Strategic Report 5 Structure, Governance & Management 11 Trustees responsibilities 14 Accounts Financial activities 16 Income and expenditure 17 Balance sheet 18 Cash flow 19 Notes to the accounts 20 Auditors report 36 Legal and administrative information 37 1 St Peter s Hospice report and accounts 2013/14
Chairman s Report I am pleased to present the annual report and accounts for St Peter's. Thanks to the dedication and skill of our excellent staff and volunteers and with the generous support of so many fundraisers and donors, St Peter's continues to provide excellent care to those with life limiting illness as observed by CQC again this year. The Hospice does so by use of its busy Inpatient Unit and separate Day Hospice at Brentry and increasingly to patients in their homes, through its varied community services, while at the same time providing training in end of life and palliative care to others working in the community. The specialist GP training for example was again judged to be first class. We remain committed to working with all communities within the Greater Bristol area. I am grateful that the Dean of Bristol Cathedral, The Very Reverend Dr David Hoyle has agreed to help us with this. We expect to recruit other trustees to strengthen this work. I am grateful to Simon Caraffi, now in his second year as CEO, providing first class leadership to the Hospice, demonstrating its values and enabling those working with it to take responsibility for the funding and development of services and partnerships. To ensure that the fabric of the Hospice supports our activities, we have renovated the Day Hospice and opened a new building in the grounds at Brentry to provide space for our PSS team. We have appointed architects to consider how best to enhance the IPU to ensure adequate facilities for patients (many with increasingly complex clinical needs) as well as their relatives and our staff. It is a busy place and the important elements of compassionate care, with time and space for all, must not be compromised. I retire from the Board at this AGM. I will have completed nine years as a Trustee, the last three as Chair. It has been a huge privilege and I wish my successor, Dr Peter Goyder, all the best for the future. At a time when there are changes to the commissioning of health services, it is particularly useful that the Chair has current clinical experience. The Hospice is in good hands, with an excellent board of trustees, volunteers all recruited because of their diverse and current skills and experience. Recently observed by Cass Business School, the Board was commended for the levels of engagement, skills and the quality of discussion. It works well with the senior team, asking the right questions and providing proper governance, while respecting the work of those working in the Hospice. With so much change in the provision of health and care services, St Peter's is well placed to work with colleagues in the Health Service and elsewhere to better serve the needs of patients as well as their families, whose interests remain at the centre of all that we do. 2 St Peter s Hospice report and accounts 2013/14
St Peter's is grateful to all its supporters and faces the future with confidence and ambition. It has been a real pleasure to work as a trustee. I look forward to returning to the ranks of volunteers and thank you all for your support over the last few years of significant change. Robert Bourns Chairman 3 St Peter s Hospice report and accounts 2013/14
Trustees Report Our aims and objectives St Peter s is Bristol s only adult hospice. We provide specialised care and support for patients with severe and progressive disease (80% 0f our patients have cancer), where curative treatment is no longer possible. Our commitment is to improve the quality of life of patients while extending care and support to their relatives. The charity s purpose as set out in the company s memorandum of association, dated 6 th February 2006, is to promote the relief of sickness and in particular to provide services to support the physical, psychological, social and spiritual needs of those affected by lifelimiting illnesses. Our aim is to provide a community service for the Greater Bristol area offering free care and support to people affected by life-limiting illnesses with complex needs. Ensuring our work delivers our aims The aims, objectives and activities of the charity are reviewed each year. This review looks at what we have achieved and the outcomes of our work in the previous 12 months. The review helps to ensure the charity remains focussed on our stated purpose. We have referred to the guidance contained in the Charity Commission s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. How our activities deliver public benefit All our charitable activities focus on offering free care and support to people and their families affected by life-limiting illnesses with complex needs and are undertaken to further our charitable purposes for the public benefit. Our work is continued with families and carers after the patient has died. We also provide extensive education to other health professionals (e.g. nurses, doctors, physiotherapists, care homes, ambulance service staff) from the region we serve. This education combined with our 24 hour Advice Line (which is accessible to anyone) helps to provide clinical professionals with the skills to support their patients with lifelimiting illnesses. 4 St Peter s Hospice report and accounts 2013/14
Strategic Report Achievements and Performance This has been Year 1 of our revised 5 Year Strategy and we have achieved growth in all areas, income and activity. Our commercial team has achieved record retail, fundraising and legacy income. In addition to the planned increases in service provision, notably in our Hospice at Home service, we have also witnessed a significant increase in new referrals requiring a response by all areas of the hospice to meet this need. Patient care activity Year 2013/14 2012/13 % Change Number of new referrals 1,856 1,764 +5.2% Community Nurse visits 8,457 7,875 +7.4% Hospice at Home patients 416 361 +15% Hospice at Home care hours 17,232 13,369 +29% Day Hospice attendance 2,123 2,204-3.6% Advice Line calls 2,068 1,878 +10% Patient Services Day Hospice refurbishment was completed, requiring a 3 week closure which accounted for the reduction in attendances over last year. Day Hospice successfully completed 6 transfusions for patients who would otherwise have required admission to hospital or our In-Patient Unit (IPU). A new Band 8 Clinical Services and Quality Manager was established. A garden room was constructed, funded by a Department of Health grant, primarily for the use of the Psychological/ Social/Spiritual (PSS) Team which expanded with the recruitment of a Spiritual Care Coordinator and an art therapist. The Hospice at Home service over-achieved against its target for a 20% increase in care hours this year. We continued to develop our 24/7 Advice Line which is accessible to patients, carers, families and other health professionals. We 5 St Peter s Hospice report and accounts 2013/14
reconfigured our triage and referrals as an Access Team to deliver a 7 day service. A new volunteer service, Hospice Neighbours, was started providing non-clinical community support to patients in their homes. Education This year we have successfully delivered a number of education initiatives, including a course for people working in shelters for the homeless and a Long Term Conditions project for registered professionals, attended by a total of 223 delegates. Numbers attending our higher education courses remained strong and we had a record 37 people complete the communication skills course we run for radiography students. In terms of staff development we have continued to build our e-learning offering for statutory training and last year 229 people took our e-learning courses (compared with 57 the year before), the first 4 Hospice at Home staff completed our Level 3 certificate in End of Life Care and we also launched a series of management development and IT training courses while continuing to offer the long standing programmes such as our 3-day certificates in End of Life Care. Future Plans The Strategic Plan covering the period 2013-18 was reviewed and endorsed by the Board in January 2014. The following are selected highlights of the coming year: The scoping of a redesign of the IPU has commenced. Its aim is to provide an improved environment for future patients, families and staff. It is also expected that by increasing the number of single rooms without decreasing the overall number of beds we will increase our bed occupancy rate. The unpredicted rise in referral rate has created particular pressure on the Community Nurse Specialist (CNS) teams. Trustees agreed to a package costing c. 165,000 per annum to increase CNS patient contact time. This package includes a dedicated CNS Manager, an additional 1.75 whole-timeequivalent CNS posts and additional administrative support. We intend to continue the year on year expansion of Hospice at Home hours, by 10% per annum. This will be tied in with the development of an End of Life Care Coordination Centre, to provide improved access to services for all patients in Bristol. Commissioned by Bristol CCG, we are developing this in partnership with Bristol Community Health. 6 St Peter s Hospice report and accounts 2013/14
Day Hospice development will continue to include increased interventional procedures on the hospice site. The PSS Team will occupy their new therapy space in the Garden Rooms which will markedly enhance the quality of their service. The Access Team will provide the first response to Advice Line calls, reducing pressure on the In Patient Unit out of hours and improving the quality of the service. Supporting and funding the Hospice General This year the commercial head office staff moved to new premises in Long Ashton which have provided much improved working accommodation and are projected to deliver savings of 100,000 in the first 5 years. One of the hospice Community Nurse Specialist teams has also been housed there, providing some excellent interaction between commercial and clinical staff. Fundraising The net income from donations & gifts (excluding legacies), merchandising and events is a record 1,263,000, an increase of 57,000 from the previous year. This includes a 77,000 increase in gross income and an increase in costs of 20,000, principally due to roles being filled this year. Contrary to the previous trend, legacies have performed very strongly this year; income received from such gifts totalled 2,174,000. This is a record and exceeded the previous year by 1,190,000, helped particularly by one very significant legacy. We depend on hundreds of supporters and volunteers who help our fundraising and we are extremely grateful for their continuing hard work. Highlights included: A very successful Superdraw at Christmas raised 60,000 (+155% on 12/13). Selection as the nominated local charity for the Bristol Half Marathon 2014. A bid to the Bristol Masons Benevolent Institute provided 19,000 as the full cost of the purchase of an adapted vehicle to use as patient transport, driven by volunteers. New events included Bristol Strictly Come Dancing which generated huge interest and 21,000. The second Firewalk built on its initial appeal and raised 13,000. Party for Pete proved increasingly popular and raised 43,000. 7 St Peter s Hospice report and accounts 2013/14
A refreshed website has attracted 42,000 of online donations in 6 months (+320% on 12/13). Our social media activity has increased significantly with the recruitment of a Digital Marketing Coordinator. We have over 5,000 Facebook followers and 600-800 Twitter contacts per month. Future Plans: We plan to introduce single ticket sales to augment our lottery offer. A new sponsored cycling event is planned for next year. Shops Our shops, all within a 12 mile radius of Bristol, delivered a net income of 1,993,000; although last year was higher, this included 360,000 from the sale of a single item and thus, when adjusted, shops growth was 5.7%. This was against a wider difficult retail background, including falling and volatile income from the sale of unsold clothing for recycling. As always we are extremely grateful to, and dependent upon, the hundreds of volunteers who work in our shops and to supporters who donate goods. Shop highlights included: The opening of our first clearance shop which exceeded its sales target by 30%. The opening of our 47 th shop at Pill. The rolling out of the Hospice awareness scheme using TV monitors and graphics in shops to illustrate the work of the hospice. A successful Christmas period including high shop sales of Christmas cards and Superdraw tickets. A Get Bristol reading promotion which coincided with World Book Week. ebay growth. For the future: We continue to seek new shop locations in order to expand the retail operation further. We will open a second clearance shop. We will complete the review of our retail operation considering a warehousing option, including additional income streams such as a furniture outlet and coffee shops. 8 St Peter s Hospice report and accounts 2013/14
Our People We remain fully committed to recruiting, developing and retaining a high quality and valued staff. We seek to recruit from all areas of the community we serve. Our recruitment policies for paid staff and volunteers are geared to equal opportunities, focusing on role requirements and therefore encouraging those with disabilities not affecting those requirements to apply. We continue to benefit from low staff turnover and sickness levels, but these are nonetheless continuously monitored. This year we participated in an independent staff survey which attracted a high response rate. It was generally very positive and we compared favourably with hospice and other charity comparators but it also highlighted some areas where staff sought improvements. We have continued to develop and refine the pay review mechanism, retail and clinical pay structures in particular. During this year s annual review close attention was given to our lowest paid staff who benefited accordingly from a higher percentage increase. In the year, following changes in government legislation, 115 qualifying members of staff were auto-enrolled in the organisation s defined contribution pension scheme; 26 (23%) subsequently decided to opt out of the scheme. We have expanded opportunities for staff to benefit from personal development. A pan-hospice Leadership and Management Course has been designed and staff members selected to attend. In the commercial area a Retail Development Programme has been run for shop managers to enhance their knowledge and understanding. We have kept up the emphasis on internal communications with all staff and volunteers. Frequent opportunities are provided for direct contact with the Senior Management Team. A programme of visits by shop staff to the clinical areas of the hospice has been welcomed by all involved. Long service by staff and volunteers is celebrated and recognised. 9 St Peter s Hospice report and accounts 2013/14
Financial Review Incoming Resources Gross income increased by 1.703m to 13.645m. Shop income fell by - 60,000 (-0.9%) however the prior year figure included a single item sale of 360,000. Merchandising & events income grew by 74,000 (+7.6%). Legacy income increased by 1,190,000 (+120.9%). Funding from the NHS increased by 73,000 (+4.6%) to 1.66m and the charity also benefited from an NHS Capital Grant of 460k for the Garden Rooms at Brentry. Total donations & gifts, merchandising and events net income grew by 57,000 (+4.7%) and net legacy income increased by 1,190,000 (+122.7%). Charitable activities The cost of providing care and education increased by 367,000 (+6.1%). All of the charity s services benefitted from increased spend with the highest increases in the Inpatient Unit of 129,000 (+3.9%) and Community Service of 109,000 (+9.0%). In the year support costs allocated to charitable objectives reduced by - 7,000 (-1.3%). Other Resources As reported in last year's financial statements, the charity has necessarily made provision for a deficit on the Flexiplan scheme. The multi-employer scheme Plan closed to further accrual in January 2010 and following two Court hearings in 2012, for interpretation of the Plan rules, the entitlement of members has been definitively established. The total provision due to the pension deficit at 31 March 2014 is 859,000 (2013: 992,000) with 133,000 paid to the pension scheme in the year under the recovery plan. The total contributions payable under the recovery plan is 1,258,000, as at 31 March 2014 399,000 had been paid leaving a balance due of 859,000. For further information see note 32. During the year 20 acres of land owned near Bristol has been granted planning permission for development. The hospice is in the process of agreeing the sale of the land and for this reason the asset is shown in assets held for resale. The valuation of 5,671,000 represents the current offer received for the sale of the land. The valuation is the net receipt the hospice would expect to receive as a result of the sale. 10 St Peter s Hospice report and accounts 2013/14
Principal Risks and Uncertainties The Board has a formal risk review management process to assess organisational risks and implement risk management strategies. This involves identifying the types of risk the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of eliminating or mitigating the risks as appropriate. The Board has delegated the detailed work to the Senior Management Team and requested that an on-going review be performed at least once a year and reported to the Board. As indicated above we have experienced an increased demand for our services this year, reflected in referral numbers. This is in keeping with the wider demographic predictions surrounding life-limiting illness and end of life care, which also suggest that this demand will keep growing. Given the Hospice s finite resources this has caused us to continuously review our services, eligibility for them and their relative priority. In tandem with growing demand for services, and notwithstanding a very successful year, we have identified several risks to income streams. Statutory NHS funding has remained flat for the past 4 years and this year we have only been offered a one-year contract. Future funding is uncertain and may require us to compete with providers from the private commercial sector which could in turn create additional costs for us. Our charitable income streams have proved resilient during the recession but improvement in the wider financial situation may have an adverse knock-on effect on our retail operation, which currently provides one third of our net income. We are already seeing significant volatility in the prices we achieve for recycling unsold clothing, driven by global factors, for example. Our legacy income was steadily declining during the period 2008 to 2013 and the strong performance this year was largely due to one high value legacy; there is continuing concern that there is an underlying gradual reduction in legacy gifts. Our response to this situation is to seek new income streams while identifying ways of limiting costs. We are actively looking at a different model for our retail operation which would enable us to exploit new sources of income while improving our current system. The successful sale of land left to us in a legacy has yielded a significant addition to our permanent endowment of over 5,600,000. We are reviewing our 11 St Peter s Hospice report and accounts 2013/14
complete investment strategy in the light of this to exploit our permanent endowment as an additional income stream. Structure, Governance and Management Governance and decision-making St Peter s Hospice is a company limited by guarantee and without share capital. The company was registered with the Charity Commission on 7 April 1975. The governing body of the Charity is the Board of Trustees, which comprises up to 12 members and meets four times a year or as required. The Board has established formally constituted committees, each with specific terms of reference and functions delegated by the Board and with a trustee as a chairman appointed by the Board: Resources, Investment, Audit & Scrutiny, Governance, Clinical Services. We have this year completed a Board Development Programme run by Cass Business School and sponsored by Help the Hospices. This resulted in a total review of the Code of Governance, including all sub-committee terms of reference. The Governance Committee has now replaced the Remuneration Committee. It now leads the process of senior management remuneration and appraisal of the CEO, as well as trustee appointments, recruiting new trustees based on an evaluation of the balance of diverse skills and experience needed to govern the hospice and all its activities. The Governance Committee also leads on Board development. An induction programme is offered to all new trustees to ensure they are aware of the charity s objects, strategy and activities and their responsibilities as trustees. Trustees (who are also Directors of the company) are listed on page 37. In accordance with Article 26, one trustee is to be appointed and three trustees are due for reappointment and two trustees are due for retirement at the forthcoming Annual General Meeting (AGM). The charity also has a number of senior employees entitled Director who are not directors within the meaning of the Companies Act 2006. Reserves policy The Board has conducted a full review of its Reserves Policy, including a comprehensive analysis of what drives the requirement for reserves. This analysis suggests that our reserves should be sufficient, in 12 St Peter s Hospice report and accounts 2013/14
amount and liquidity, to manage a severe situation in which cash inflows significantly fail to meet cash outflows, without the need for catastrophic or reputation-damaging reductions in service. We adopted a risk-based approach which was nevertheless conservative given the imperative of sustaining St Peter s Hospice on a long-term basis. To determine the requirement we evaluated a potential reduction in income over a period of two years, a period considered long enough to reduce expenditure and readjust income streams accordingly. Different percentage reductions were postulated for different income sources, varying between 15% and 30%. It was further assumed that given the low probability of all income streams reducing simultaneously, the overall total reduction would absorb a greater reduction in any one income stream than that predicted. The conclusion of this was that our net operating cash flow could be 2,939,000 worse than budget in year 1, reducing to 1,470,000 worse in year 2 hence the reserve requirement was set at 4,409,000. Free reserves total 5,555,000 (2013: 4,431,000). Investment policy The Board reviews the investment policy through its Investment Committee. Appointed investment managers are used to manage a general fund and an endowment fund. The funds comprise equities, fixed income stocks and cash. The Investment Committee has given the investment managers the discretion to manage the funds within an agreed risk profile. The current risk profile is to obtain reasonable long term return at moderate risk. The risk applies to the portfolios as a whole rather than to individual stocks. It is the charity s policy specifically to exclude investing directly in tobacco manufacturing companies or their parents. Decisions regarding investment properties and holdings in the Charities Property Fund are made by the Investment Committee on behalf of the Board, having taken appropriate advice from professional advisers. In the year the total return from the combined investment portfolio, excluding the Charities Property Fund, was +4.27%, compared with a return of +5.61% from the WMA Balanced Total Return Index. The investment in the Charities Property Fund appreciated by 6.27%, in capital terms and the current income yield is 6.0%. 13 St Peter s Hospice report and accounts 2013/14
Statement of Trustees responsibilities The Board is responsible for preparing the Directors Report and the financial statements in accordance with applicable law and regulations. Company and charity law requires the Board to prepare financial statements for each financial year. Under that law the Board has elected to prepare financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the charity for that period. In preparing these financial statements, the Board is required to: Select the most suitable accounting policies and then apply them consistently; make judgments and accounting estimates that are reasonable and prudent; state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Board has overall responsibility for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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, ensuring that the assets are properly applied in accordance with charity law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statements as to disclosure of information to auditors The trustees have taken all the necessary steps to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. As far as the trustees are aware, there is no relevant audit information of which the company's auditors are unaware. 14 St Peter s Hospice report and accounts 2013/14
Auditors A resolution to reappoint Mazars LLP as auditors to the Company and to authorise the Board to fix their remuneration will be proposed at the Annual General Meeting. By order of the Board Phil Nunnerley Vice Chairman 2 nd July 2014 Charlton Road Brentry Bristol BS10 6NL 15 St Peter s Hospice report and accounts 2013/14
Consolidated statement of financial activities For the year ended 31 March 2014 Note Unrestricted Funds Restricted Funds Endowment funds Total 2014 Total 2013 Incoming resources General Shops Incoming resources from generated funds 000 000 000 000 000 000 Voluntary income Donations and gifts 3 1,060-45 - 1,105 1,102 Legacies 4 2,174 - - - 2,174 984 Activities for generating funds Merchandising and events 5 1,051-1 - 1,052 978 Shops income 6-6,693 - - 6,693 6,753 Investment & other income 7 369 - - - 369 407 Incoming resources from charitable activities Grant funding 8 1,663-460 - 2,123 1,590 Education course fees 129 - - - 129 128 Total incoming resources 6,446 6,693 506-13,645 11,942 Resources expended Cost of generating funds: Cost of generating voluntary income Fundraising 345 - - - 345 323 Legacies 14 - - - 14 14 Fundraising trading: Merchandising & events costs 549 - - - 549 551 Cost of selling donated goods - 4,700 - - 4,700 4,508 Investment management costs 37 - - 11 48 42 Total cost of generating funds 9 945 4,700-11 5,656 5,438 Net income available for charitable activities 5,501 1,993 506 (11) 7,989 6,504 Charitable activities Patient care 5,977-31 - 6,008 5,664 Education 378 - - - 378 355 Total charitable expenditure 9 6,355-31 - 6,386 6,019 Governance 63 - - - 63 57 Other resources expended 9 - - - - - 320 Total resources expended 9 7,363 4,700 31 11 12,105 11,834 Net incoming resources before transfers (917) 1,993 475 (11) 1,540 108 Transfer between funds 2,487 (1,993) (1,164) 670 - Net income for the year 1,570 - (689) 659 1,540 108 Net realised gains/(losses) on investment assets (20) - - 66 46 (17) Net unrealised gains/(losses) on investment assets (29) - - 84 55 726 Net movement on property revaluation reserves 25 - - 4,831 4,856 - Net movement in reserves 1,546 - (689) 5,640 6,497 817 Fund balances brought forward at 1 April 10,452-719 2,525 13,696 12,879 Fund balances carried forward at 31 March 11,998-30 8,165 20,193 13,696 16 St Peter s Hospice report and accounts 2013/14
Consolidated summary income and expenditure account For the year ended 31 March 2014 Note 2014 2013 000 000 Gross income of continuing operations 13,483 11,800 Gross income of trading subsidiaries: St Peter s Hospice Enterprises Ltd 162 142 Total income of continuing operations 13,645 11,942 Expenditure of continuing operations (12,038) (11,774) Expenditure of trading subsidiaries: St Peter s Hospice Enterprises Ltd 6 (56) (50) Total expenditure of continuing operations 9 (12,094) (11,824) Net surplus before investment asset disposals 1,551 118 Net realised (losses)/gains (20) 6 Net surplus for the year 1,531 124 The summary income and expenditure account is presented in order to ensure compliance with the Companies Act 2006. The major difference in the figures presented from those in the Consolidated Statement of Financial Activities (SOFA) on page 16 is that the following items are not included in the summary income and expenditure account:- 1) Unrealised gains and losses on investments 2) Movements on the endowment funds In accordance with the provisions of the Companies Act 2006, a separate income and expenditure account dealing with the results of the parent company only has not been presented. The net increase in reserves for the year for the parent company was 6,391,000 (2013: 725,000). All activities are continuing. The consolidated statement of financial activities shown on page 16 incorporates the statement of total recognised gains and losses. The notes on pages 20 to 35 form part of the financial statements. 17 St Peter s Hospice report and accounts 2013/14
Registered company no. 1191227 Consolidated and company balance sheets As at 31 March 2014 Fixed assets Note Group 2014 000 Group 2013 000 Company 2014 000 Company 2013 000 Tangible assets 16 4,296 3,899 4,416 4,019 Investment assets 17 10,088 10,084 10,088 10,084 Current assets 14,384 13,983 14,504 14,103 Stocks 1 3 - - Assets held for resale 17 5,671-5,671 - Debtors 18 1,396 988 1,390 984 Investments 19 51 106 51 106 Cash at bank and in hand 20 945 696 882 658 8,064 1,793 7,994 1,748 Creditors: amounts falling due within one year 21 (1,396) (1,088) (1,348) (1,065) Net current assets 6,668 705 6,646 683 Total assets less current liabilities 21,052 14,688 21,150 14,786 Provision 22 (859) (992) (859) (992) Net assets 20,193 13,696 20,291 13,794 Capital and reserves Endowment funds 23 8,165 2,525 8,165 2,525 Restricted funds 24 30 719 30 719 Unrestricted funds Designated funds 25 & 26 6,296 5,899 6,416 6,019 Revaluation reserve 17 147 122 147 122 Income and expenditure account 27 5,555 4,431 5,533 4,409 11,998 10,452 12,096 10,550 Total funds 20,193 13,696 20,291 13,794 These financial statements were approved by the Trustees on 2 nd July 2014 and signed on its behalf by: Phil Nunnerley, Vice Chairman R Isaacs, Trustee 18 St Peter s Hospice report and accounts 2013/14
Consolidated cash flow statement For the year ended 31 March 2014 Note 2014 2013 000 000 000 000 Net cash inflow from operating activities 33 1,522 381 Returns on investment 369 407 Capital expenditure and financial investment Purchase of tangible fixed assets 16 (979) (233) Sale of tangible fixed assets - - Payments to acquire investments 17 (3,238) (1,587) Receipts from sales of investments 17 2,520 1,198 Net cash outflow on capital expenditure and financial investment (1,697) (622) Net cash inflow before management of liquid resources and financing Management of liquid resources 34 194 166 Net cash transferred from/(to) fund managers 55 (60) Net cash inflow/(outflow) from management of liquid resources 55 (60) Increase/(decrease) in cash 34 249 (106) 19 St Peter s Hospice report and accounts 2013/14
Notes (forming part of the financial statements) 1 Status of the company The company is limited by guarantee. The members of the company are the trustees who are also ordinary members named on page 37. The liability of members in the event of a winding up is limited by guarantee to an amount not exceeding 1 per member. 2 Accounting policies The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements. 2.1 Basis of preparation The financial statements have been prepared under the historical cost convention, with the exception of investments, which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP 2005): Accounting and Reporting by Charities, published in March 2005, and applicable Accounting Standards. The consolidated financial statements incorporate the financial statements of the company and its subsidiaries for the year to 31 March 2014. As permitted by s408 of Companies Act 2006 and paragraph 327 of the SORP, a separate profit and loss account dealing with the results of the company only has not been presented. 2.2 Incoming resources The following specific policies apply to categories of income: Legacy income is recognised at the earlier of the estate account being finalised and cash being received. Donated services and facilities are included at the value to the charity where this can be quantified. No amounts are included in the financial statements for services donated by volunteers. Gifts donated for resale are included in income when they are sold. Investment income: dividend income is included in income when the cash is received. Deferred income includes amounts received in respect of work to be undertaken in the next financial year. The Charity operates a gift aid scheme through its shops which enables gift aid to be claimed on the net sale proceeds of items that have been donated under the scheme. An estimate of income from gift aid is accrued at the point that donated items are sold. 2.3 Resources expended All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources. Support costs are made up of administration & management and finance costs. Administration & management include the costs of employing the Chief Executive, Finance & Administration Director and personnel department. It also includes the cost of: bank charges, insurance, bank interest and legal and professional expenses. Fundraising costs are split between trading and the cost of generating donations and gifts. Costs, where possible are directly allocated to each activity. General fundraising support costs are allocated to activities in proportion to their relative cost. Where activities generate both donations and gifts as well as trading income, costs are apportioned on the basis of income. Fundraising costs incurred in seeking voluntary contributions do not include the costs of disseminating information in support of the charitable activities. Governance costs are the costs associated with the governance arrangements of the Charity which relate to the general running of the Charity as opposed to those costs associated with fundraising or charitable activity. Included within this category are costs associated with governing the Charity's activities including audit and associated charges. 2.4 Fixed assets and depreciation Tangible fixed assets are stated at cost (of purchase or construction) less accumulated depreciation. Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows: Freehold buildings Building improvements Fixtures, fittings, equipment and vehicles Shop refurbishments 2% per annum 10% per annum 10%-33% per annum 17% per annum Minor shop fittings, soft furnishings, bedding, crockery and other utensils are written off in the year of purchase. Depreciation is charged monthly following the month of acquisition. No depreciation is provided on freehold land. 20 St Peter s Hospice report and accounts 2013/14
Notes (continued) 2.5 Investment properties In accordance with Statement of Standard Accounting Practice No 19: Investment properties are valued professionally every three years at open market values. All surpluses and deficits arising on valuation are taken directly to revaluation reserve except that any permanent diminution in the value of an investment property is taken to profit and loss account for the year; and No depreciation or amortisation is provided in respect of freehold investment properties. Non-depreciation of investment properties may be a departure from the requirements of the Companies Act concerning depreciation of fixed assets. However, these properties are not held for consumption but for investment and the directors consider that systematic annual depreciation would be inappropriate. The accounting policy adopted in respect of depreciation of investment properties is therefore necessary for the accounts to give a true and fair view. Depreciation or amortisation is only one of the many factors reflected in the annual valuation and the amount, which might otherwise have been shown, cannot be separately identified or quantified. 2.6 Fixed asset investments Investments are shown at market value as at the year-end and any movements are recorded as unrealised gains or losses in the consolidated statement of financial activities. Profits or losses on investments sold during the year are calculated comparing net proceeds with original cost and are recorded as realised gains or losses in the consolidated statement of financial activities. 2.7 Stocks Stock consists of purchased goods for resale. Stocks are valued at the lower of cost and net realisable value. Items donated for resale are not included in the financial statements until they are sold. 2.8 Fund accounting Unrestricted funds - these are funds which can be used in accordance with the charity's charitable objects at the discretion of the Trustees. Designated funds - these funds are set aside by the Trustees out of unrestricted funds for specific purposes. At the year end they comprise a fixed asset fund to allow for the net book amounts already invested in tangible assets, other than those covered by restricted funds and a future capital fund. Restricted funds these are funds received for undertaking an activity specified by the donor. Endowment funds these are funds where the donor has specified the funds should be treated as a permanent capital fund, where the income arising from the capital fund is available to meet the running costs of the Charity. 2.9 Operating leases Rental charges on operating leases are charged to the statement of financial activities on a straight-line basis over the period of the lease. 2.10 Pension costs Employees can join a defined contribution pension scheme which is administered by Aviva. The group also contributes to the NHS Pension Scheme on behalf of a minority of employees who are eligible to join the scheme. This is an unfunded defined benefit scheme. The amount charged against income represents the contributions payable to the schemes in respect of the accounting period. The group operated a voluntary defined benefit pension scheme, which is now closed. The final contributions made to this scheme were in January 2010. The funds are administered by pension trustees and are independent of the group's finances. 21 St Peter s Hospice report and accounts 2013/14
Notes (continued) 3 Donations Unrestricted funds 000 Restricted funds 000 Total 2014 000 Total 2013 000 Individuals 340 4 344 378 In memoriam 369 1 370 354 Charitable foundations 80 40 120 84 Corporate sector 231-231 224 General community 40-40 62 Total donations 1,060 45 1,105 1,102 4 Legacies Legacies receivable in the year totalled 2,174,000 (2013: 984,000). As at 31 March 2014 the charity has been notified of material legacies amounting to approximately 850,000 (2013: 975,000) which, in accordance with the accounting policy, have not been included in the income statements on pages 16 and 17, but which we would expect to receive during the year 2014/15. 5 Merchandising and events Unrestricted funds 000 Restricted funds 000 Total 2014 000 Total 2013 000 Merchandising and commission 188-188 163 Fundraising events community 595 1 596 558 corporate 13-13 7 Lottery 255-255 250 Total merchandising and events 1,051 1 1,052 978 22 St Peter s Hospice report and accounts 2013/14
Notes (continued) 6 Trading activity Donated goods - shops SPH Enterprises Limited Total 2014 Total 2013 000 000 000 000 Trading income 6,693 162 6,855 6,895 Cost of sales * 4,300 56 4,356 4,127 Administrative expenses 400-400 431 Trading expenses 4,700 56 4,756 4,558 Contribution 1,993 106 2,099 2,337 * Cost of sales for SPH Enterprises Ltd excludes the 4,000 (2013: nil) intercompany management charge paid to the charity as this is eliminated on consolidation. 7 Investment and other income Group and company 2014 2013 000 000 Dividends and interest 284 285 Rents 71 110 Other 14 12 369 407 8 Grant funding Group and company 2014 Total 000 2013 Total 000 NHS Primary Care Trusts service funding - 1,590 NHS England service funding 1,663 - NHS England capital grant 460-2,123 1,590 The NHS service funding received during the year represents 28% (2013: nil) of the cost of patient care. 23 St Peter s Hospice report and accounts 2013/14
Notes (continued) 9 Analysis of expenditure Activities undertaken directly Support costs 2014 2013 000 000 000 000 Cost of generating funds Fundraising 257 88 345 323 Legacies 12 2 14 14 Merchandising & events costs 549-549 551 Cost of selling donated goods 4,300 400 4,700 4,508 Investment management costs - 48 48 42 Total cost of generating funds 5,118 538 5,656 5,438 Charitable expenditure: Inpatient care 3,157 265 3,422 3,293 Community service 1,215 109 1,324 1,215 Day hospice 555 48 603 552 Hospice at Home 525 48 573 521 Bereavement 81 5 86 83 Total patient care 5,533 475 6,008 5,664 Education 336 42 378 355 Total charitable expenditure 5,869 517 6,386 6,019 Governance - 63 63 57 Other resources expended (see note 2 below) - - - 320 Total resources expended 10,987 1,118 12,105 11,834 Notes: 1. Analysis of support costs is shown in note 10. 2. Other resources expended for the prior year was the charge to increase the provision in respect of the deficit on the Flexiplan pension scheme (see note 32). 24 St Peter s Hospice report and accounts 2013/14
Notes (continued) 10 Support costs allocation Admin & Management Finance & IT depts 2014 2013 000 000 000 000 Cost of generating funds Fundraising 51 37 88 89 Legacies 1 1 2 2 Fundraising trading: Cost of selling donated goods 151 249 400 431 Investment management costs 48-48 42 Charitable activities: Inpatient services 163 102 265 276 Community services 64 45 109 104 Day hospice 29 19 48 46 Hospice at Home 27 21 48 48 Bereavement 3 2 5 5 Education 28 14 42 45 Governance 43 20 63 57 Total support costs 608 510 1,118 1,145 Cost allocation includes an element of judgement and the charity has had to consider the cost benefit of detailed calculations and record keeping. Basis for support costs allocation is as follows: Administration and management has been allocated based on a combination of the number of staff in an area and actual time spent by support staff. IT and Finance departmental costs have been allocated based on the combination of activity levels and staff numbers. 11 Subsidiaries During the year the charity had one wholly owned subsidiary, incorporated in the UK. St Peter's Hospice Enterprises Limited sells Christmas cards, calendars and items incorporating the hospice logo on behalf of the hospice. It also acts as agent for the Shops Gift Aid scheme, earning commission. The company transfers its taxable profits to St Peter's Hospice under gift aid. A summary of the results of St Peter s Hospice Enterprises Limited included in the consolidated statement of financial activities is shown below. The expenditure includes 4,000 (2013: nil) intercompany management charge paid to the charity which is eliminated on consolidation. Full accounts are filed with the Registrar of Companies. Total 2014 2013 Income and expenditure account 000 000 Income 162 142 Expenditure (60) (50) Net income 102 92 Gift aid transfer to St Peter's Hospice (102) (92) Retained in subsidiary - - 25 St Peter s Hospice report and accounts 2013/14
Notes (continued) 12 Remuneration of directors Note 30 shows details of related party transactions. No Trustee received remuneration in the year (2013: nil). Trustees are entitled to the reimbursement of expenses necessarily incurred on hospice business. During the year ending 31 March 2014 no such expenses were claimed (2013: < 500). 13 Staff and volunteers The average number of volunteers involved regularly on hospice business is believed to be in excess of 1,900. Employed staff members, based on full-time equivalents (FTE) and including three FTE doctors employed by the NHS but recharged to the hospice, are as follows: 2014 2013 Patient care 135 125 Education 6 6 Governance 1 1 Fundraising 14 13 Shops 141 138 Total staff 297 283 The aggregate employment costs of these persons were as follows: 2014 2013 000 000 Wages and salaries 7,069 6,735 Social security costs 533 510 Pension contributions (see note 32) 560 460 8,162 7,705 Pension contributions include employee salary sacrifice contributions of 48,000 (2013: nil). The hospice utilises the services of self-employed stock collectors to provide a service to the shops division. These people are not included in the table above. Employees whose emoluments, excluding pension contributions, were equal to or greater than 60,000 per annum were as follows: Number of employees 2014 2013 60,001-70,000 3 2 70,001-80,000 1-100,001-110,000 1 1 5 3 Three of the employees in the table above were accruing retirement benefits under defined benefit schemes (2013: two employees), and two were accruing retirement benefits under defined contribution schemes (2013: one), The company maintains indemnity insurance for the trustees and officers of the company and its subsidiaries; the cost of providing this insurance was 2,019 (2013: 2,019). 26 St Peter s Hospice report and accounts 2013/14
Notes (continued) 14 Net movement in funds Net movement in funds is stated after charging/(crediting): 2014 2013 000 000 Auditors' remuneration: Audit 10 10 Other services 26 1 Depreciation 582 625 Rent of land and buildings operating leases 712 726 Rents receivable under operating leases (71) (110) Loss on disposal of tangible fixed assets - 5 15 Taxation The charity suffered irrecoverable Value Added Tax on certain goods and services received, amounting to approximately 143,000 (2013: 121,000) in the year. The charity was registered as a charity in April 1975. Under part II of CTA 2010 the charity is not subject to taxation on its charitable activities. The profits of the non-charitable subsidiaries are normally gift aided to the parent charity; therefore the group generally suffers no Corporation Tax on its trading activities. 16 Tangible fixed assets Group Freehold property (including building improvements) Fixtures and fittings (including motor vehicles) Shop refurbishment Total 000 000 000 000 Cost As at 1 April 2013 3,720 2,235 3,425 9,380 Additions 485 298 196 979 Disposals - - - - As at 31 March 2014 4,205 2,533 3,621 10,359 Depreciation As at 1 April 2013 1,030 1,672 2,779 5,481 Charge for year 88 231 263 582 Disposals - - - - As at 31 March 2014 1,118 1,903 3,042 6,063 Net book value As at 31 March 2014 3,087 630 579 4,296 As at 31 March 2013 2,690 563 646 3,899 27 St Peter s Hospice report and accounts 2013/14
Notes (continued) 16 Tangible fixed assets (continued) Company Freehold property (including building improvements) Fixtures and fittings (including motor vehicles) Shop refurbishment Total 000 000 000 000 Cost As at 1 April 2013 3,840 2,235 3,425 9,500 Additions 485 298 196 979 Disposals - - - - As at 31 March 2014 4,325 2,533 3,621 10,479 Depreciation As at 1 April 2013 1,030 1,672 2,779 5,481 Charge for year 88 231 263 582 Disposals - - - - As at 31 March 2014 1,118 1,903 3,042 6,063 Net book value As at 31 March 2014 3,207 630 579 4,416 As at 31 March 2013 2,810 563 646 4,019 Included in the cost of freehold property of the group and company is 70,000 of land which is not being depreciated. The company figures include 120,000 (2013: 120,000) in respect of interest capitalised in connection with the building of the Brentry site in 1998. As the charge was an intra-group transaction it is eliminated on the consolidation of the subsidiary company balances. The net book value of the seven freehold shops open at 31 March 2014 was 812,000 (2013: 833,000). 17 Fixed asset investments Group and company 2014 2013 000 000 Equities at market value 7,526 6,136 Fixed interest investments including Government stocks, at market value 1,907 2,478 Investment properties (see below) 655 1,470 10,088 10,084 28 St Peter s Hospice report and accounts 2013/14