St Richard's Hospice report of the governors & consolidated financial statements year end March 2019

REGISTERED NUMBER: COMPANY 01850502 CHARITY 515668

REPORT OF THE GOVERNORS AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

FOR

ST. RICHARD’S HOSPICE FOUNDATION REGISTERED CHARITY LIMITED BY GUARANTEE

ST RICHARD’S HOSPICE FOUNDATION REGISTERED CHARITY LIMITED BY GUARANTEE CONSOLIDATED FINANCIAL STATEMENTS

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

Page

Report of the Governors including the Strategic Report

1 - 11

Report of the Independent Auditor

12-13

Consolidated Statement of Financial Activities

14

Consolidated Income and Expenditure Account

15

Group and Charity Balance Sheets

16

Consolidated Statement of Cash Flows

17

Notes to the Consolidated Statement of Cash Flows

18

Notes to the Financial Statements

19 - 34

ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 The Governors present their annual report, strategic report and audited financial statements of the parent charity and its subsidiary undertaking for the year ended 31 March 2019. The accounts comply with current statutory requirements, the charity’s governing document and the Statement of Recommended Practice – Accounting and Reporting by Charities.

Reference and administration details of the charity, its trustees and advisers The name of the charity is St Richard’s Hospice Foundation (“St. Richard’s Hospice”), a company limited by guarantee. The company was incorporated on 24 September 1984. Memorandum and Articles of Association were updated and filled with Companies House on 2nd February 2005. In accordance with Section 60 of the Companies Act 2006, the company is exempt from the requirements of that Act to include ‘Limited’ as part of its name. The company’s registered number is 01850502. The company is also a registered charity, number 515668.

The principal address and registered office of the company

St Richard’s Hospice Wildwood Drive Worcester WR5 2QT

Trustees Governors in office during the year:

J M Bawden (Chairman) J G Bartholomew Mrs J P Cowpe Mrs H E Edwards P L Flagg C A Glossop S A Hyslop Dr I M Laws (appointed 2 December 2018) Professor R A Lewis Mrs A L Palmer Cllr A Roberts Dr J Quallington (resigned 1 May 2018) R G Shaw (Treasurer) Miss B Sheridan Professor T Thompson OBE R Dunne (appointed 24 June 2019) A Hobday (appointed 24 June 2019)

The Governors delegated the day to day management of the charity to the Chief Executive, June Patel.

Key Management Personnel Chief Executive Medical Director Commercial Director Fundraising Director Care Director

June Patel Dr Nicola Wilderspin Daniel Corns Tricia Cavell Debbie Westwood (appointed 25 February 2019)

Principle Advisers The company’s auditors

Crowe U.K. LLP Black Country House Rounds Green Road Oldbury B69 2DG

The company’s solicitors

Hallmark Hulme Solicitors 3, 4 & 5 Sansome Place Worcester WR1 1UQ

The company’s bankers

National Westminster Bank Plc 1 The Cross Worcester WR1 3PR

The company’s investment advisers

Close Brother Asset Management Limited 10 Exchange Square Primrose Street London EC2A 2BY

Page 1

ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

Structure, governance and management The company is governed by its Memorandum and Articles of Association.

Council of Governors In accordance with the company’s Articles of Association, the company has a council whose members are Governors. Such Governors constitute directors of the company for Companies Act purposes and trustees of the charity for Charity Act purposes.

The company is limited by guarantee and therefore the Governors have no beneficial interest to disclose. The appointment of new Governors is undertaken by the current Governors and approved by the members at the AGM. Two Governors are nominated by Worcester City Council, who are volunteers within the Council.

St Richard’s Hospice Governors are expected to be pro-active and actively involved in supporting the Hospice. Potential Governors are identified by the skills and expertise they will bring, as well as their motivation and support for the mission. They are interviewed by the Chairman and at least two other Governors. They are required to attend the volunteer induction training programme and receive formal induction by the Chairman.

The Chairman works with other Governors to review their performance and contribution to the work of the Hospice.

Organisation Strategic decisions are made by the Council of Governors in regular meetings, delegating operating responsibilities to appropriate subcommittees. Day to day management is conducted by the Chief Executive Officer, who reports regularly to the Council of Governors.

The management structure for committees is below. Governors chair most committees which include the Finance and General Purpose Committee, Service/Development Sub-Committee, Clinical Quality & Patient Safety Sub-Committee and Trading Company Board. The committees meet regularly and report to the quarterly Council of Governors meetings. The Hospice has a full suite of policies and procedures which clearly outline the demarcation of levels of responsibilities.

St Richard’s Hospice Governance Structure

Council of Governors Chair: Chair of Governors

Clinical Quality & Patient Safety Sub Committee Chair: Governor

Infection Control Group Chair: Care Quality Lead

Chair: Chief Executive

Finance & General Purpose Sub Committee Chair: Treasurer

Worcestershire Hospices Lottery Chair: Commercial Director

Audit and Evaluation Group Chair: Care Quality Lead

Strategy Implementation Group

Listening into Action Chair: Care Quality Lead

Trading Company Chair: Governor

Remuneration Committee Chair: Governor

Information Governance Committee Chair: SIRO CEO

Service/Development Sub Committee Chair: Governor

Investment Committee Chair: Governor

Health and Safety Committee Chair: Facilities Manager

Research Development Group Chair: Medical Director

St Richard’s Hospice is affiliated to the National Council of Palliative Care, is a member of Hospice UK and is a member of the Herefordshire and Worcestershire Chamber of Commerce.

Page 2

ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) Subsidiary and associated companies The charity has a wholly owned subsidiary company – St. Richard’s Hospice Trading Company Limited. The object of St Richard’s Hospice Trading Company Limited is to raise funds for St Richard’s Hospice, which sells new and second hand donated goods.

The charity’s owns 33.33% of Worcestershire Hospices Lottery Limited. It shares equal ownership with Primrose Hospice Limited and Acorn’s Children’s Hospice.

For the purposes of these consolidated accounts, the wholly owned subsidiary has been consolidated on a line by line basis and the holding in Worcestershire Hospices Lottery Limited included using the equity method applicable to joint ventures.

Our Purpose, Vision and Values Our purpose (in brief) To care for adults with a serious progressive illness, improving their quality of life from diagnosis, during treatment and to their last days. We also support their loved ones.

Our vision That people affected by a serious progressive illness and their loved ones have access to a range of free, excellent care and support to enable them to live life to the full.

For whom do we care?

We care for people with a serious progressive illness who have complex needs which cannot be met by other services. These include cancer and neurological, respiratory, cardiac and renal conditions. All our services are available to people registered with a South Worcestershire GP. Our In-patient Unit cares for people across Worcestershire.

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ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) Our services and how they meet our purpose in detail • • • • • • • • • • •

Care is provided by St Richard’s Hospice Clinical Nurse Specialists and Hospice at Home teams to patients with a life limiting illness and their loved ones, in their own home, where home is identified by the patient as the preferred place of care.

Multi-disciplinary Day Services provide enabling, rehabilitative and psychological support for patients to live as well as possible with a life limiting illness. This is achieved by monitoring pain and other physical symptoms, providing advice and guidance to families and loved ones and other supporting therapies e.g. aromatherapy.

Medical advice to General Practitioners is provided by St Richard’s medical team as appropriate.

Bereavement support and counselling is provided for family and loved ones of former patients both pre and post death. A bespoke bereavement service (commissioned by the NHS) is provided for sudden death eg. suicide and road traffic accidents.

Telephone access to information and signposting for the general public and health and social care professionals via our Gateway service, led by a team of Clinical Nurse Specialists.

A 17 bed consultant led In-Patient Unit with full Multi-Disciplinary Team support, including a designated medical team.

Chaplaincy and spiritual support to provide multi-faith spiritual help and guidance.

24/7 telephone advice is available via our Gateway service and Clinical Nurse Specialist (CNS) on call out of hours. The Gateway services provides a “triage” service in working hours (8.30am -5.00pm) and switches to a telephone advice line led by a CNS on call from 5.00pm - 8.30am.

Volunteer services provide trained volunteers to support patients, families and carers at home, in Day Services and the In-patient Unit.

Education and training in specialist palliative and end of life care for health and social care staff, students, staff and volunteers is provided by our bespoke education team.

Participation and engagement in appropriate research projects led by the National Institute for Health Research Clinical Research Network: West Midlands.

Strategic Objectives & Activities The strategic objectives for the period 2019- 2023 are: • • • • • • •

• • •

Develop patient services to meet the specialist, rehabilitative, palliative and end of life care needs of patients with a life limiting illness in the in-patient unit and the community 24/7.

Develop and maintain a flexible, multi-skilled work force who will be equipped to meet the challenges of developing specialist palliative and end of life care.

Maintain financial reserves of at least 6 months of the charitable foundation’s expenditure.

Sustain good relations with all appropriate NHS, civic, private, voluntary and community sector partners.

Deliver high quality palliative and end of life care in Worcestershire by the better integration of the provision of care with partners and most efficient use of all assets and organisations.

Nurture staff and volunteer loyalty and retention by a proactive HR policy that encourages job satisfaction through good personnel management, training and personal development planning, while offering realistic financial remuneration.

Obtain long term contracts with NHS Commissioners, or other statutory bodies that provide St Richard’s Hospice with statutory funding and service support that conforms to national tariffs, Department of Health guidelines, and Strategic Transformation plans for Worcestershire and Herefordshire and ensure that the financial allocation compares favourably with the average national contribution to independent hospices.

Sustain an achievable annual increase in income from fundraising and all commercial activities to cover increases in services, inflation and any reduction in statutory funding that may impact upon St Richard’s Hospice.

Develop and maintain St Richard’s Hospice profile across Worcestershire, and other areas from which patients come, as the first choice charity to support.

Broaden the recruitment of new volunteers to take into account local demographics and modern cultural attitudes towards volunteering and increase in volunteering roles.

Our method Hospice is not a place, it is a philosophy of care; we provide free physical, social, psychological and spiritual palliative care in the form of specialist medical, nursing, counselling and care support to patients with cancer and other life-limiting illnesses, their families and carers. Patient care is provided at home, in nursing homes, in residential homes, in the community hospitals, in the Worcestershire Royal Hospitals Acute NHS Trust, at Wildwood Drive, or wherever the patient is.

We work closely with our community and hospital colleagues from the NHS, Social Services, local nursing homes and other voluntary service providers. All our work enhances the care and support patients and their families receive from statutory services.

Our care is unconditional, non-judgemental and provided free of charge to all at the point of delivery, regardless of creed, gender, ethnic origin or social background.

Employees and Volunteers St Richard’s Hospice has a Remuneration Committee chaired by the Chairman of Governors with three additional Governors and attended by the CEO, HR Manager and Finance Manager. Each year it reviews the salaries of all members of staff. Salaries for senior management are benchmarked against the Croner Hospice Rewards and Charities Rewards reports with consideration being given to the regional, West Midlands, median. Additionally, consideration is given to NHS and private sector comparators. This process is applied to setting the remuneration of key management personnel.

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ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) Employees and Volunteers (Continued) It is charity policy to give full and fair consideration to applications for employment made by disabled persons, having regard to the particular abilities and aptitudes of each applicant and to the requirements of vacant posts available. Employees who become disabled in service are retained where possible either in their own or more suitable posts. St Richard’s Hospice has a staff representation group called “Moving Forward Together” that meets regularly and gives feedback to the senior management team. Additionally, staff and volunteers are kept up to date with hospice matters through a weekly newsletter, quarterly Staff Meetings, in-house reports, the Intranet, and the “In Touch” news sheet sent to all volunteers.

The charity is reliant upon its 1000+ volunteers who work across the full breadth of its patient services, in the shops, and fundraise. The Governors estimate that the contribution in terms of hours and indicative value of volunteers is as follows: Role: Patient Services

Patient Services Admin – Volunteer Services Admin – Day Hospice Admin – Family Support Admin – HR Admin – Education Bath Nurses Clinic Support Mini-Bus Driver Car Driver Mini-Bus Escort Complementary Therapy Chaplain Day Hospice Volunteer Creative & Diversional Therapy Saturday Social Group Flower Arranging Gardeners Maintenance Hairdressing IPU Helpers Kitchen Volunteer Physiotherapy Main Reception Snowdrop Reception Community Sitters Hospice Neighbours/Community Volunteers Hospitality Assistant Listening Into Action Family Support Volunteer Family Support Administrator Family Support – Carers Group Hosts Telephone Bereavement Support Volunteer Counsellor Yoga Therapist

Role: Support and Trading Company Admin – Accounts Admin – Commercial Admin – Fundraising, Coordinators, Collectors, Events Admin – Facilities Governors/Trustees Shop Volunteers Warehouse

Grand Total:

2019 Annual Hours

2019 Annual Cost £

2018 Annual Hours

2018 Annual Cost £

548 6 188 2 21 872 385 706 364 687 1,373 5,703 68 2 186 287 39 2,632 8 5,949 580 625 1,192 961 7 15 1,183 4 ----------24,593 ======

4,414 46 1,513 16 163 12,214 2,951 5,423 2,783 7,593 20,588 43,915 949 17 1,422 2,215 297 20,272 66 45,763 4,541 5,026 9,107 13,460 98 215 16,568 56 ----------221,691 ======

687 11 75 5 370 878 413 807 471 497 1,069 5,914 75 139 3 339 221 1,275 38 11 5,811 4 42 1,936 2,283 3 470 69 24 538 146 ----------24,623 ======

5,531 85 605 36 2,744 12,293 3,071 6,023 3,506 5,493 16,029 44,068 856 1,942 24 2,519 1,635 9,506 284 199 43,349 30 302 15,583 17,078 41 6,573 553 340 7,537 2,045 ----------209,880 ======

619 1,172 1,460 4 488 90,148 11,748 ----------105,639 ====== 130,232 ======

4,981 9,437 11,750 32 9,756 693,875 90,566 ---------820,397 ====== 1,042,088 ======= 1,083,772 =======

441 1,201 1,163 320 89,882 12,952 ----------105,960 ====== 130,582 ======

3,551 9,670 9,363 6,254 668,276 96,996 ----------794,110 ======= 1,003,990 ======== 1,044,149 ========

Plus 4% Pension

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ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) Strategic Report Quality standards and clinical quality The clinical work of St Richard’s Hospice is subject to audit, registration and compliance by the Care Quality Commission “Health and Social Care Act 2008 (Regulated Activities) Regulations 2014 part 3” and “CQC (Registration) regulations 2009”. Following registration, there is ongoing monitoring of St Richard’s clinical quality via a variety of sources of information and accessible data. On 9 June 2016, the CQC rated St Richard’s services overall as good.

The Hospice holds its own quarterly Clinical Quality & Patient Safety Sub-Committee meetings which is attended by two Governors where quality matters are reviewed. The Minutes of these meetings are submitted to the Service/Development Sub-Committee and the Council of Governors. Additionally, annual Clinical Quality Reviews are carried out with NHS Commissioners.

Achievements and performance including plans for future periods The care of patients and their loved ones continues to be at heart of everything we do. Every day of the year our staff and volunteers strive to provide the highest standard of care, support and compassion for everyone using our services in order for them to experience incredible care.

Examples of feedback from those receiving our services:

“Knowing mum was being cared for. The tireless emotional support and care from everyone from cleaners to doctors. The whole family felt loved and cared for. I don't know what we would have done without St Richard's. x “ (May 2018) “The support received from (name of CNS) was just wonderful and that she was a support of contact in their worst times.

They talked at further length at how much they appreciated the compassion, support and professionalism they received” (Feedback given to a Social Worker at a ‘Day after death’ meeting, 03/2019) “I would like to say a big thank you to all the lovely nurses in Hospice at Home. I can’t tell you how much I appreciated all the care and kindness given to (name of patient) during his last few weeks”, (relative of patient, card of thanks, 02/2019) “Your kindness, compassion and respect and humour when needed was whole-heartedly felt and appreciated” April 2019

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ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) Achievements and performance including plans for future periods (Continued)

PRIORITIES FOR IMPROVEMENT 2018-2019 Summary of achievements: Improvement Priority 1: Complete building project for re-configured reception, Day Hospice and upper floor extension. Partially completed Improvement Priority 2: Complete the implementation of the Information Technology infrastructure project in order to improve IT connectivity and develop innovative IT solutions to support patient care and education. Completed Improvement Priority 3: Complete the workforce development project and identify workforce priorities, clinical skills and competencies to continually enhance the clinical care and services provided to patients and their loved ones. Completed and now under continuous review Improvement Priority 4: Complete the service review of the In-patient Unit in order to identify areas to transform clinical care and patient experience. Partially completed PRIORITIES FOR IMPROVEMENT 2019-2023 Future planning It must be noted that implementation of these priorities is dependent upon the ability to raise the necessary funds.

Improvement Priority 1: Develop a Clinical Strategy that outlines a clear clinical vision for St Richard’s clinical teams in line with sustainability and transformation partnership (STP) priorities, widening access to end of life care, the delivery of exceptional person-centred specialist end of life care through continuous service improvement confirmed by positive feedback from patients and loved ones.

Improvement Priority 2: Aspire to an Outstanding rating by CQC following the next unannounced visit.

Improvement Priority 3: Sustain and grow our income by developing an innovative fundraising and commercial strategy to ensure and deliver sustainable and expanding income streams.

Improvement Priority 4: Develop a digital strategy informed by horizon scanning to seek out Information Technology, Artificial Intelligence and Digital innovations to augment clinical and business functions and enable productivity and different ways of working.

The 17 bed In-Patient Unit admitted 347 patients, 80% (278) of which were admitted within 24 hours. With 1,089 new referrals and 39,232 “contacts” the St Richard’s Hospice Nurse Specialists continue to be busy. The Hospice at Home Team received 337 referrals and on average supporting 50 patients at home at any one time. The co-ordination between our Nurse Specialist and Hospice at Home means we are able to support more patients and families in their preferred place of care, in the community which prevents admissions to the NHS Acute Trust and helps that Trust facilitate discharge of patients.

St Richard’s Hospice uses Key Performance Indicators (KPIs) to measure its performance monthly. From these KPIs that cover all clinical services, HR, Volunteers and Finance, information is extrapolated to inform 7 strategic level KPIs that are reported to the Council of Governors covering the three major clinical areas, Finance, Reserves and NHS Contracts and Personnel. The annual Patient Services and Quality Accounts report covers each clinical department’s performance over the year in detail. These reports can be found on St Richard’s Hospice website: www.strichards.org.uk Public Benefit The Governors consider that they have complied with the duty in Section 17 of the Charities Act 2011 and have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning future activities.

St Richard’s Hospice clinical services are free to all; death does not discriminate and neither does St Richard’s in offering a level of specialist palliative care that the NHS cannot. The only real limit upon our services is the ability to raise funds. Knowing that our resources are not limitless, the health community refers patients to the hospice who are in greatest need of its care. The number of patients that St Richard’s has been able to help in 2018/19 is as follows: Category

2018/19

2017/18

Number of Admissions to the In-patient Unit Monthly average of Day Hospice patients attendance Number of Specialist Nurse new Referrals Number of Family Support Client Contacts

347 85 1,089 9,045

356 121 1,121 9,947

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ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) Fundraising Disclosures – Charities (Protection and Social Investment) Act 2016 St Richard’s Hospice is registered with the Fundraising Regulator and evidence of membership can be found at https://fundraisingregulator.secure.force.com/directory/directoryResult?id=0015800000YlaRDAAZ. There were no reported instances of failure to comply with the standards of this regulator.

Where fundraising events are being conducted by someone on behalf of the charity the publication Your Fundraising Guide is issued to them.

This includes a statement about monies being due to the charity to be paid within 6 weeks of the event. We monitor the activity through our CRM system using the pledge system where possible.

St Richard’s employs two sole traders on a part time basis who act as professional fundraisers. Neither fundraiser employs others or works as part of an agency. The capacity, expertise, insight, and innovation that these individuals provide enables St Richard’s to extend its fundraising reach. The public will often not differentiate between them and one of the charity’s own fundraisers and therefore we view them as an extension of our organisation, ensuring that they are equipped to act and behave as our charity representative.

Any complaints received are recorded in a complaints log and registered, which is available for scrutiny. This is presented to the board annually and for the financial year 2018/19 this was sent to all board members with the March papers. There was no complaints forwarded to the Fundraising Regulator in the year.

All staff at the hospice, including fundraisers, are NHS compliant and this includes training on safeguarding for vulnerable adults and for safeguarding children. The Fundraising Director is level 2 compliant and all others involved with fundraising are trained to level 1. This can be evidenced against every individual training record.

We continue to work hard to ensure our CRM database allows us to facilitate donors and supporters contact preferences to ensure compliance with GDPR and have undertaken significant work to seek this information from our donors; introduce privacy policies to the website along with a fundraising promise. Both can be viewed here: https://www.strichards.org.uk/about/privacy-policy/

Our fundraising promise can be found at https://www.strichards.org.uk/raise-funds/.

The Fundraising Preference Service (FPS) is a website-based service that can help members of the public control the communications they receive from charities. By entering your details on the Fundraising Preference Service website, or by calling the helpline on 0300 3033 517, hospice supporters can choose to stop email, telephone calls, addressed post and/or text messages directed to you personally from a selected charity or charities.

Material Fundraising Targets and Activity Fundraising targets are set as part of the annual budgeting process. The three main sources of income for the hospice are grouped as follows: 1: NHS 2: Donations, legacies and fundraising events 3: Income from Shops NHS The budget for this stream of income was set at a 0% uplift on the income received in 17/18. St Richard’s managed to achieve this level of NHS support. 18/19 was the seventh year in succession our NHS grant has been frozen.

DONATIONS, LEGACIES AND FUNDRAISING EVENTS Total income for these sources exceeded budget by over £643k in the year. The main reason for this group of income sources exceeding budget was a high level of legacy notifications in period and a successful start to the 2020 Capital Appeal.

INCOME FROM SHOPS St Richard’s Hospice Trading Company Limited had a distribution target of £749,254 set for the financial year 18/19, made up of net profit for the organisation and gift aid income on second hand goods. Total realisations achieved in the year were £700,608 (incl. Gift Aid income on second hand goods). Tough trading conditions combined with the delay in opening of Tewkesbury shop affected the funds generated in the period.

Fundraising activity in the period incurred a cost of £3,332,946. The growth of this cost £440,787 was more than outweighed by the increase in fundraising income in the period of £1,006,437. The benefits received by this increased fundraising expenditure is expected to be received not just in the current period but years to come as the activities of the hospice will increase with the completion of the various elements of the Build 2020 project.

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ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

Financial review Following material fundraising targets and activity on the previous page our financial review is as follows: St Richard’s Hospice Foundation Total income for the year was £8,277,809 (2018- £7,485,821). Total expenditure was £7,117,097 (2018 - £6,886,104).

At 31 March 2019 the charity’s unrestricted fund balances were £15,577,212 (2018 - £9,631,618) of which £9,147,322 (2018 - £3,229,082) represented designated tangible fixed assets.

The Hospice activities, which are provided free of charge, are primarily funded by public donations, fundraising activities and income generated by the shops operated through St Richard’s Hospice Trading Co Limited, supported by a service contract with the NHS. The restricted funds are detailed on pages 32 to 33. Total restricted funds were £78,336 (2018 - £4,432,850).

A change in accounting treatment has been adopted for these financial statements being the reclass of a funds being restricted to unrestricted where they have been used to purchase an asset. This is because the purchase of the assets has satisfied the restriction imposed on the funds.

The two main factors which influenced the financial results in the year were the continuation of large legacy receipts and receipt of capital appeal income supporting the Build 2020 project.

St Richard’s Hospice Trading Co Limited The company generated sufficient funds, net of gift aided sales, to be able to distribute £521,778 (2018 - £478,126) from operations in its shops and warehouse. Total income, including income from the sale of gift aided donated goods, which is recorded in the Charity accounts, was £2,733,818 (2018 - £2,501,134) and total direct expenditure was £2,212,040 (2018 - £2,023,008).

The Group The Group’s results show total income (including the joint venture) of £10,367,591 (2018 - £9,396,476).

Net income was £1,257,923 (2018 - £699,233) and after including net gains on investments of £264,189 (2018 - £156,310 loss), the net movement in funds was £1,522,112 (2018 - £542,923). Total reserves figure amounted to £15,571,940 (2018 - £14,049,828) and represents unrestricted reserves of £15,493,604 (2018 - £9,616,978) and restricted reserves of £ 78,336 (2018- £4,432,850).

Principal financial management policies St Richard’s prepares an annual budget, which is approved by the Governors. Monthly accounts are prepared and discussed with the Senior Management Team to ensure that variances from the budget are monitored and acted upon as appropriate. Copies of the monthly accounts are circulated to Governors. The accounts are discussed at the meetings of the Finance and General Purpose Committee and Council of Governors.

Cash balances in excess of St Richard’s immediate requirements are placed in interest bearing deposit accounts and with Investment Advisers.

Principal risks and uncertainties St Richard’s has a comprehensive on-going system for risk assessment and management. Every week the Senior Management Team meeting will consider any risk to the charity. These, and any necessary remedial action taken, will be reported to either the Finance and General Purpose Committee or Hospice Services Committee that meet quarterly, as appropriate. This presents an opportunity to: -

Talk about principle risks Give a summary of plans Explain factors affecting future performance

A Risk Register is managed by the Chief Executive and is reviewed at the Finance and General Purpose Committee and Council of Governors meetings, as appropriate.

One of the principal risks and uncertainties facing the Hospice relate to the funding of the charity, particularly the impact of constraints, or reductions, on statutory funding, a significant reduction in grant making, trust or legacy income, and a downturn in income from the trading subsidiary company. The Hospice mitigates these risks by focusing on the following: -

Taking advantage of opportunities to reduce costs where this can be done without compromising other hospice objectives To continue to pursue the objective of diversifying income streams so that the impact of a reduction in any one income stream is less significant to the hospice’s ability to achieve its goals Hold sufficient reserves to allow it time to address financial challenges as they present themselves

The strategy for 2019-23 will require capital investment, which includes the build 2020 project. The excess of funds above the Reserves policy at the year-end can be applied to this. The risk for implementing the strategy will be St Richard’s ability to increase income over this period to pay for the additional running costs that come from growing the services offered by the Hospice and the outcome of any additional Capital Appeal.

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ST. RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) Reserves policy Reserves are required in order: a) To provide a buffer should there be a downturn in fundraising. b) To provide staff security of employment.

Total funds for the Charity held as at 31 March 2019 were £15,655,548 (2018 - £14,064,468).

The Council of Governors has directed that a minimum of six months operating costs for the Charity should be held (for the financial year 2019/20 this represented a target of £3.4m).

Unrestricted reserves of the Charity at 31 March 2019, which were freely available for general purposes, amounted to £6,429,890 (2018: £6,402,536), which exceed the amount required to meet the reserves policy by £3.1m. The surplus of reserves held compared to the reserves policy can be applied to further the Hospice strategy for 2019-23 and the Build 2020 project.

The Charity designated fixed asset fund of £9,147,322 (2018 - £3,229,082) recognises those funds that are not free funds. It represents the net book value of tangible fixed assets excluding those tangible fixed assets funded from restricted funds.

Restricted funds totalling £78,336 (2018 - £4,432,850) were held at the year end. This type of fund is not available for general purposes.

Investment policy The majority of the Financial Investments held by the Group are managed by Close Brothers Asset Management (CBAM) which was appointed as adviser in April 2014. The investment target is CPI + 4% which in March 2019 was 5.8% (March 2018: 6.3%). Actual performance of all investment classes i.e. those managed by CBAM and investment property in the year was 8.9% (2018: -1.6%).

The hospice’s investments are a means to earning revenue to fund activities which further the Charity’s purpose and are not recognised as free reserves. The time horizon for these investments is 10+ years; the portfolio being low to medium risk. Investments are not made in companies with turnover from the sale or production of tobacco.

Income from these investments in the period was £116,771 (2018: £172,366) with cash deposit interest totalling £33,654 (2018: 28,926) (note 5).

Statement as to disclosure of information to auditors Insofar as each of the Governors of the charity at the date of approval of this report is aware there is no relevant audit information (information needed by the charity’s auditor in connection with preparing the audit report) of which the charity’s auditor is unaware. Each Governor has taken all of the steps that he/she should have taken as a Governor in order to make himself/herself aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.

Statement of Governors’ responsibilities The Governors (who are also directors of St. Richard’s Hospice Foundation for the purposes of company law) are responsible for preparing the Governors’ Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Governors are required to: • • • • •

select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Governors 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.

Page 10

ST. RICHARD’S HOSPICE FOUNDATION REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) Auditor The auditor, Crowe U.K. LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

The report of the Governors (incorporating the directors’ report and the strategic report) was approved by the Board of Governors on 10 October 2019 and signed on its behalf by:-

J M Bawden – Chairman

Page 11

ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF ST RICHARD’S HOSPICE FOUNDATION Opinion We have audited the financial statements of St Richard’s Hospice Foundation for the year ended 31 March 2019 which comprise: Consolidated Statement of Financial Activities, Consolidated Income and Expenditure Account, Group and Charity Balance Sheet, Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements: •

give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 March 2019 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended;

•

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

•

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: • •

the Governors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or the Governors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information The Governors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit •

the information given in the Governors’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•

the strategic report and the directors’ report included within the Governors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception In light of the knowledge and understanding of the group and the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the Governors’ report.

Page 12

ST RICHARD’S HOSPICE FOUNDATION REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF ST RICHARD’S HOSPICE FOUNDATION (continued) We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: •

the parent company has not kept adequate accounting records; or

•

the parent company financial statements are not in agreement with the accounting records and returns; or

•

certain disclosures of Governors ' remuneration specified by law are not made; or

•

we have not received all the information and explanations we require for our audit.

Responsibilities of Governors As explained more fully in the Governors’ responsibilities statement (set out on page 10), the Governors (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, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the group’s or the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report This 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. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Drew Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury B69 2DG

10 October 2019

Page 13

ST RICHARD’S HOSPICE FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2019

Notes

Total Total Unrestricted Restricted Fund Funds £

£

Total Funds 2019

Total Funds 2018

£

£

INCOME FROM: Donations and Legacies

2

2,293,633

2,006,368

4,300,001

3,702,324

Charitable Activities

3

2,086,880

-

2,086,880

2,069,031

Other Trading Activities

4

3,756,243

-

3,756,243

3,347,483

Investments:

5

116,771

-

116,771

172,366

16

107,695

-

107,695

105,272

-------------8,361,223 ========

------------2,006,368 ========

--------------10,367,591 =========

-------------9,396,476 ========

Other - Share of net income of Joint Venture

TOTAL INCOME

EXPENDITURE ON: Raising Funds

6

3,040,201

292,745

3,332,946

2,892,159

Charitable Activities

7

5,560,410

216,312

5,776,722

5,805,084

------------8,600,611 ========

-----------509,057 =======

-------------9,109,668 ========

-------------8,697,243 ========

(239,388)

1,497,311

1,257,923

699,233

264,189

-

264,189

(156,310)

------------

-------------

------------

-------------

24,801

1,497,311

1,522,112

542,923

Transfers between funds for purchased items

5,851,825 --------------

(5,851,825) ---------------

--------------

--------------

NET MOVEMENT IN FUNDS

5,876,626

(4,354,514)

1,522,112

542,923

9,616,978 -------------15,493,604 ========

4,432,850 ------------78,336 ========

14,049,828 -------------15,571,940 ========

13,506,905 --------------14,049,828 =========

TOTAL EXPENDITURE

NET INCOME/(EXPENDITURE) AND NET MOVEMENT IN FUNDS BEFORE GAINS/(LOSSES) ON INVESTMENTS Net gains/(losses) on investments

13 & 14

NET INCOME/(EXPENDITURE)

RECONCILIATION OF FUNDS: TOTAL FUNDS BROUGHT FORWARD TOTAL FUNDS CARRIED FORWARD

27

The notes form part of these financial statements

Page 14

ST RICHARD’S HOSPICE FOUNDATION CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2019 Group 2019

Group 2018

Charity 2019

Charity 2018

Notes £ INCOME

£

£

10,259,896

9,291,204

8,277,809

7,485,821

9,109,668 --------------

8,697,243 -------------

7,117,097 -------------

6,886,104 --------------

1,150,228

593,961

1,160,712

599,717

107,695 -------------

105,272 ------------

107,695 -------------

105,272 --------------

1,257,923

699,233

1,268,407

704,989

264,189 -------------

(156,310) -------------

322,668 ------------

(156,310) --------------

1,522,112

542,923

1,591,075

548,679

--------------

------------

--------------

--------------

1,522,112 ========

542,923 =======

1,591,075 ========

548,679 ========

EXPENDITURE NET INCOME FOR THE YEAR BEFORE JOINT VENTURE Share of net income from joint venture

16

NET INCOME FOR THE YEAR BEFORE NET GAINS/(LOSSES) ON INVESTMENTS Net gains/(losses) on investments

NET INCOME FOR THE YEAR BEFORE TAX Tax on net income

11

NET INCOME FOR THE YEAR AFTER TAX

The notes form part of these financial statements

Page 15

£

ST RICHARD’S HOSPICE FOUNDATION CONSOLIDATED FINANCIAL STATEMENTS GROUP AND CHARITY BALANCE SHEET AS AT 31 MARCH 2019

Notes

FIXED ASSETS Tangible assets Investments Investment property

CURRENT ASSETS Stock Debtors Cash at bank

LIABILITIES Creditors: amounts falling due within one year

Group 2018 £

Charity 2019 £

Charity 2018 £

9,646,395 3,242,840 --------------12,889,235 =========

7,755,586 3,910,251 140,000 -------------11,805,837 ========

9,147,322 3,242,940 582,681 -------------12,972,943 ========

7,248,165 3,910,351 662,061 ------------11,820,577 =========

91,972 1,265,992 2,190,288 -------------3,548,252 ========

110,441 1,266,215 2,077,704 -----------3,454,360 =======

1,282,034 2,128,429 -------------3,410,463 ========

1,288,224 2,030,776 -----------3,319,000 ========

865,547 -------------2,682,705 ========

1,210,369 -----------2,243,991 =======

727,858 -------------2,682,605 ========

1,075,109 -----------2,243,891 ========

15,571,940 =========

14,049,828 ========

15,655,548 =========

14,064,468 =========

27

78,336

4,432,850

78,336

4,432,850

27

5,395,175 452,034 9,646,395 --------------15,571,940 =========

5,532,027 348,448 3,736,503 ------------14,049,828 ========

5,919,377 510,513 9,147,322 ------------15,655,548 =========

6,054,088 348,448 3,229,082 ------------14,064,468 =========

12 13 14

17 18

19

NET CURRENT ASSETS

TOTAL NET ASSETS

THE FUNDS OF THE CHARITY Restricted Funds Unrestricted Funds: General Fund - Investment Fair Value Reserve Designated Funds

Group 2019 £

27 27

The financial statements were approved and authorised for issue by the board on 10 October 2019 and signed on its behalf by:

J M Bawden - Governor

The notes form part of these financial statements

Page 16

ST RICHARD’S HOSPICE FOUNDATION CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST MARCH 2019

Notes

2019 £

2018 £

Cash flows from operating activities: Net cash provided by operating activities

1

1,144,699 -------------

787,299 ------------

Dividends, interest and rents from investments Purchase of property and equipment Proceeds from sale of investments Purchase of investments Joint Venture Distributions

113,382 (2,324,723) 1,400,843 (329,243) 107,628

156,703 (987,618) 1,423,921 (359,390) 120,935

Net cash provided by/(used in) investing activities

------------(1,032,115) --------------

-------------354,551 ---------------

112,584

1,141,850

2,077,704

935,854

--------------

-------------

2,190,288

2,077,704

========

========

Cash flows from investing activities:

Change in cash and cash equivalents in the reporting period: Cash and cash equivalents at the beginning of the reporting period: Cash and cash equivalents at the end of the reporting period:

2

The notes form part of these financial statements

Page 17

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST MARCH 2019 1.

Reconciliation of net income to net cash flow from operating activities 2019 £ Net income for the reporting period (as per the Statement of Financial Activities): Adjustments for: Depreciation charges (Gains)/losses on investments Dividends, interest and rents from investments Decrease in stocks Decrease/(increase) in debtors (Decrease)/increase in creditors Income from Joint Venture Net cash provided by operating activities:

2.

2018 £

1,522,112

542,923

433,915 (264,189) (116,771) 18,470 3,679 (344,822) (107,695) -----------1,144,699 =======

445,049 133,066 (172,366) 12,454 (234,416) 165,861 (105,272) -----------787,299 =======

2,190,288 ========

2,077,704 ========

Analysis of cash and cash equivalents Cash at bank and in hand

The notes form part of these financial statements

Page 18

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 1.

ACCOUNTING POLICIES Charitable company information St Richard’s Hospice Foundation is a private charitable company limited by guarantee, incorporated in England and Wales. The registered office of St Richard’s Hospice Foundation and St Richard’s Hospice Foundation Trading Company Limited is Wildwood Drive, Worcester, WR5 2QT. 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Companies Act 2006 and the Charities Act 2011.

The charitable company meets the definition of a public benefit entity under FRS 102.

The financial statements are presented in sterling (£) and are rounded to the nearest £.

Going Concern The group has cash resources and no requirement for external funding to fund normal operating activities. The Governors believe that there are no material uncertainties about the group’s ability to continue in operating existence for the foreseeable future. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements.

Group financial statements These financial statements consolidate the results of the charity and its wholly owned subsidiary on a line by line basis. All intergroup transactions are eliminated on consolidation. Investments in joint ventures are included in the group financial statements using the “equity method”.

Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that income will be received and the amount can be measured reliably.

Income from voluntary sources is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. Income from gift aid tax reclaims is recognised for all donations made prior to the year end, where valid gift aid declarations are held.

Legacies are recognised at the earlier of the date on which either: the charity is aware that the estate has been finalised and the executors have advised the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy is only considered probable when the amount can be measured reliably and the executors have advised the charity that a distribution will be made.

Where legacies have been notified to the charity, but the criteria for income recognition have not been met, the legacy is treated as a contingent asset and disclosed if material in note 21. Therefore, recognition is dependent on the type of legacy, with pecuniary legacies recognised when notification is received, and residuary legacies recognised when amounts are distributed or when a statement of assets and liabilities of the estate is received. Reversionary legacies are not recognised during the lifetime of the original beneficiary under the will. The charity operates a cut-off period being a practical mechanism to allow preparation of the accounts. Should a notification be received before the year but not be quantifiable two months after the year end then the income, when measurable and receipt is probable, will be recognised in the following period.

Income received in advance of an event or provision of other specific service is deferred until the criteria for income recognition are met.

Expenditure The cost of raising funds includes costs of generating voluntary income and costs of fundraising trading. Charitable activities costs include expenditure on delivering palliative care and education. Governance costs include costs of meeting the charity’s statutory and constitutional objectives.

Support costs are allocated to all cost centres on a basis calculated in proportion to the estimated usage of facilities.

Expenditure is accounted for on an accrual basis.

Gifts in kind Gifts received in kind for resale are recognised when the gift is sold using the sales value.

Donated services or facilities are included in the Statement of Financial Activities where the benefit to the charity is reasonably quantifiable and measurable. The contribution of volunteers is not included in the Statement of Financial Activities, but is disclosed in the Governors’ Report in accordance with the SORP. Donated assets given for use by the charity are recognised at their market value as income and within the relevant fixed asset category on the balance sheet when receivable.

Page 19

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) 1.

ACCOUNTING POLICIES (continued) Liabilities Liabilities are recognised in the accounts as soon as a present obligation arises from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Fund accounting General funds are expendable at the discretion of the Governor’s in furtherance of the charity’s objectives and which have not been designated for other purposes. It is the policy of the hospice to build up a reserve of at least six months operating costs of the Foundation in this fund. Designated funds comprise unrestricted funds that have been set aside by the Governors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds contain income which has been received for specific purposes, less the related expenditure against these. The aim and use of each material restricted fund is set out in the notes to the financial statements.

Leasing commitments Rentals paid under operating leases are charged to the Statement of Financial Activities over the term of the lease.

Pensions The pension costs represent amounts payable by the group during the year (see note 22).

Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Tangible fixed assets Tangible fixed assets are initially included at cost.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property (including commercial property) Freehold property – solar panels Leasehold land Assets under construction Shop refurbishment Medical equipment Furniture and fittings Motor vehicles Office equipment

-

2% on cost of buildings 5% on cost Over life of lease (125 years) 0% 20% - 33% on cost 20% - 50% on cost 10% - 50% on cost 20% - 33% on cost 20% - 50% on cost

Items of medical equipment, office equipment and furniture and fittings, having an initial cost of less than £1,000, are written off to revenue in the year of acquisition.

Freehold land is not depreciated, Investments Listed fixed asset investments are included at fair value (quoted market price in an active market). Gains or losses on investments are included in the Statement of Financial Activities and Income and Expenditure Account.

The Charity owns investment properties that are valued internally at fair value, considered by the Governors to be open market value, annually with fair value changes recognised in the Statement of Financial Activities and Income and Expenditure Account. They are treated as an investment property in the parent only accounts, but as an own use tangible fixed asset in the group financial statements in accordance with FRS 102 as it is let by the parent to its wholly owned subsidiary.

Any changes in fair value over historic cost will be shown as an investment fair value reserve in the Balance Sheet.

The investment in the subsidiary and joint venture are included at cost.

Financial instruments Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Financial instruments include cash at bank, trade debtors, legacies receivable, accrued income from financial instruments (comprising dividends and interest due from investments), trade creditors and accrued expenditure. Financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page 20

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) 1.

ACCOUNTING POLICIES (continued) Significant estimates and judgements Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: Useful economic lives of tangible assets The annual depreciation and amortisation charges for the tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are amended when necessary to reflect current estimates and the physical condition of the assets.

Impairment of debtors The group makes an estimate of trade debtors and other debtors. When assessing the impairment of trade debtors and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Taxation The charity is exempt from Corporation Tax on its charitable activities. The charity and its subsidiary company are registered for Value Added Tax. Irrecoverable VAT is allocated to the areas in which it is incurred.

2.

DONATIONS AND LEGACIES

Unrestricted Restricted Funds Funds £ £ 137,399 1,869,653 63,205 16,623 ---------------------2,086,880 ======== ======

Total Funds 2019 £ 137,399 1,869,653 63,205 16,623 -------------2,086,880 ========

Total Funds 2018 £ 140,000 1,866,858 44,498 17,675 -----------2,069,031 ========

Unrestricted Restricted Funds Fund £ £ 661,435 97,584 55,865 21,860 7,029 1,958,335 954,135 ----------------------3,756,243 ======== ======

Total Funds 2019 £ 661,435 97,584 55,865 21,860 7,029 1,958,335 954,135 ------------3,756,243 ========

Total Funds (Restated) 2018 £ 542,523 106,588 56,534 23,356 7,323 2,029,323 581,836 -------------3,347,483 =========

CHARITABLE ACTIVITIES

NHS contribution towards drugs NHS Contract Education Medical services and training

4.

Total Funds (Restated) 2018 £ 306,705 369,019 1,456,941 53,205 114,237 137,829 1,264,388 ------------3,702,324 =========

Unrestricted Funds £ 286,135 432,548 962,388 38,007 132,029 173,874 268,652 -------------2,293,633 ========

Donations Donations in memory Legacies Collections Regular giving Corporate including payroll giving Grants

3.

Restricted Fund £ 28,207 1,978,161 -----------2,006,368 =======

Total Funds 2019 £ 314,342 432,548 962,388 38,007 132,029 173,874 2,246,813 -------------4,300,001 ========

OTHER TRADING ACTIVITIES

SRH Events and campaigns Assisted events fundraising Raffles Other Chaplain Trading company income Gift aid on second hand goods

Page 21

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

5.

UK INVESTMENT INCOME

Interest Dividends Rent received

6.

Total Restricted Funds Fund 2019 £ £ 33,654 79,032 4,085 --------------------116,771 ====== =======

Total Funds 2018 £ 28,926 130,935 12,505 ----------172,366 =======

Unrestricted Funds £ 2,166,768 95,463 547,954 197,642 32,374 ------------3,040,201 ========

Total Restricted Funds Fund 2019 £ £ 2,166,768 95,463 275,120 823,074 17,625 215,267 32,374 ---------------------292,745 3,332,946 ====== ========

Total Funds 2018 £ 1,984,619 97,490 546,713 215,831 47,506 -----------2,892,159 ========

Total Unrestricted Restricted Funds Funds Fund 2019 £ £ £ 4,095,337 105,987 4,201,324 1,207,268 110,325 1,317,593 149,257 149,257 108,548 108,548 ----------------------------------5,560,410 216,312 5,776,722 ======== ======= ========

Total Funds 2018 £ 4,216,694 1,335,172 145,133 108,085 ------------5,805,084 ========

COST OF RAISING FUNDS

Shops and commercial activities Support costs re above (Note 8) Fundraising Support costs re above (Note 8) Costs of managing investments

7.

Unrestricted Funds £ 33,654 79,032 4,085 ----------116,771 =======

CHARITABLE ACTIVITIES EXPENDITURE

Patient and Family Service costs Support costs re above (Note 8) Education and Study Centre Support Costs re above (Note 8)

Page 22

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) 8.

SUPPORT COSTS ALLOCATED TO ACTIVITIES Raising Funds Shops and Commercial Activities__ £ Unrestricted Property related costs Telephone and fax Postage, printing and stationery Insurance Depreciation Miscellaneous Human resources Computer expenses Salaries and other costs Catering supplies Transport and minibus Governance costs Communications and Marketing VAT

Restricted Depreciation – land and buildings Depreciation – transport and minibus Depreciation – furniture and fittings & office Communications and Marketing Computer Expenses

Raising Funds Fundraising £

Charitable Activities Education and Study Centre £

Charitable Activities Patient and Family Services £

Total Funds 2019 £

Total Funds 2018_ £

9,267 1,501 2,663 6,076 26,663 18,808 27,823 2,663 ---------95,463 ======

11,121 3,646 6,657 1,354 4,641 1,918 8,420 18,808 78,812 841 51,749 9,675 ---------197,642 ======

18,535 2,144 6,657 1,355 23,203 320 1,402 18,808 30,852 4,055 141 1,075 ----------108,548 ======

54,175 14,153 10,650 24,375 204,188 23,889 103,844 131,209 498,192 77,054 3,416 10,373 51,750 -----------1,207,268 =======

93,098 21,444 26,627 27,084 232,032 32,203 140,329 187,633 635,679 81,109 3,416 14,018 103,499 10,750 -----------1,608,921 =======

168,489 13,369 27,948 15,862 150,413 27,478 143,211 174,956 683,553 86,461 6,728 14,458 107,551 560 ------------1,621,038 ========

---------95,463 ======

17,625 ---------215,267 ======

-----------108,548 =======

86,853 1,631 3,767 17,624 450 ------------1,317,593 ========

86,853 1,631 3,767 35,249 450 -------------1,736,871 ========

86,853 4,543 3,802 33,745 6,597 ------------1,756,578 ========

Support costs are allocated to all cost centres at various percentages based on the estimated usage of facilities.

Page 23

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) 9.

STAFF COSTS

Wages and salaries Social Security costs Pension Costs

2019 £

2018 £

5,510,313 463,999 362,170 -------------6,336,482 ========

5,295,199 447,423 347,680 -------------6,090,302 ========

The wages and salaries cost above includes salaried employees’ costs of £5,417,189 (2018 - £5,188,473) with the remaining £93,124 (2018 - £106,726) being staff paid via invoice, due to them being agency/seconded. Staff can receive a benefit by being a member of a private health insurer and the cost of this for the year ended 31 March 2019 was £24,051 (2018 - £24,272). There was no redundancy cost in the year (2018 - £19,077).

The average monthly number of salaried employees during the year by the group was as follows:

2019

2018

143 4 14 49 27 ----237 ===

138 3 14 49 32 ----236 ===

Patient and Family Services staff Education staff Fundraising staff Shops and commercial Other staff

The number of employees whose emoluments as defined for tax purposes amounted to over £60,000 in the year was as follows:

2019 2 1 1

£60,000 - £70,000 £70,000 - £80,000 £90,000 - £100,000

2018 2 0 1

The total amount of employee benefits (inclusive of national insurance and pension contributions) received by key management personnel was £348,181 (2018 - £337,234).

No remuneration has been paid and no expenses have been reimbursed/accrued regarding any Governors other than: Expenses for travel and subsistence were repaid to one Governor amounting to £218 (2018: £236) R G Shaw (as Richard G Shaw Ltd), a practising chartered accountant, supplied medical services and accounting and taxation as follows: 2019 2018 £ £ St Richard’s Hospice Trading Company Limited – R G Shaw

:

650

£650 (2018 - £600) is included in accruals in respect of amounts owed to Richard G Shaw Ltd at the year end.

The Governors are satisfied that the payment of these fees complies with the requirements of the Charities Act 2011.

Page 24

600

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

10.

NET INCOME/(EXPENDITURE)

2019 £

2018 £

Depreciation

433,915

445,049

Operating lease charges: buildings other

436,258 4,956

396,226 12,245

11,500 3,000

10,858 3,000

362,170

347,680

=======

=======

868 =======

836 =======

The net income/(expenditure) is stated after charging:

Auditor’s remuneration: Charity audit Subsidiary audit Pension costs

Governors emoluments and other benefits etc

11.

TAXATION The company is a registered charity and is not liable to corporation tax. No liability to UK corporation tax arose on ordinary activities of the subsidiary company for the year ended 31 March 2019 nor for the year ended 31 March 2018 as all profits are gift aided to the parent charity.

Page 25

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

12.

TANGIBLE FIXED ASSETS - GROUP ONLY Long Leasehold Land £

522,061 2,141 ---------524,202 ======

7,608,192 (627) ------------7,607,565 =======

100,000 ------------ --100,000 =========

788,472 132,368 (18,491) ---------902,349 ======

90,962 5,090 (44,660) ----------51,392 ======

14,640 10,484 ---------25,124 ======

1,347,200 159,034 (627) ------------1,505,607 ========

10,667 800 ---------- --11,467 ========

434,470 177,843 (18,491) ----------593,822 ======

71,618 13,556 (44,660) --------40,514 ======

499,078 ====== 507,421 ======

6,101,958 ======== 6,260,992 ========

88,533 ======== 89,333 ========

308,527 ======= 354,002 =======

10,878 ====== 19,344 ======

Commercial Properties £ COST: At 1 April 2018 Additions Disposals At 31 March 2019 DEPRECIATION: At 1 April 2018 Charge for year Disposals At 31 March 2019 NET BOOK VALUE: At 31 March 2019 At 31 March 2018

Build 2020 £ COST: At 1 April 2018 Additions Disposals At 31 March 2019 DEPRECIATION: At 1 April 2018 Charge for year Disposals At 31 March 2019 NET BOOK VALUE At 31 March 2019 At 31 March 2018

Refurbishment of Short Leasehold Shops Medical and Warehouse Equipment £ £

Freehold Land and Buildings £

Furniture and Fittings £

Motor Vehicles £

Office Equipment £

Totals £

441,189 2,056,279 -------------2,497,468 ========

163,316 43,758 (76,980) -----------130,094 =======

105,053 (65,410) -----------39,643 =======

135,610 85,087 (32,376) -----------188,321 =======

9,954,855 2,324,723 (238,544) ------------12,041,034 ========

------------=======

144,127 19,360 (76,981) -----------86,506 =======

80,370 8,766 (65,410) -----------23,726 =======

96,177 44,072 (32,376) -----------107,873 =======

2,199,269 433,915 (238,545) ------------2,394,639 ========

2,497,468 ======== 441,189 ========

43,588 ====== 19,190 ======

15,917 ====== 24,683 ======

80,448 ====== 39,433 ======

9,646,395 ======== 7,755,586 ========

This note represents fixed assets for the Group. The only difference between Fixed Assets for the Group and the Charity is that the Charity has its commercial property leased to its subsidiary (cost £524,202 and depreciation £25,124) shown as investment property (increasing the value of investments in note 14 by £524,202). Therefore, as at 31 March 2019, the total cost, total depreciation and net book value of the Charity’s fixed assets are £11,516,837, £2,369,515 and £9,147,322 respectively.

Page 26

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

13.

FIXED ASSETS INVESTMENTS Group 2019 2018 £ £ 3,910,251 4,988,048 329,243 392,634 (1,260,843) (1,293,921) 264,189 (176,510) -----------------------3,242,840 3,910,251 ======== =======

Valuation At 1 April 2018 Additions at cost Disposal proceeds Net gains/(losses) on investments At 31 March 2019 Fixed asset investments by type: Cash on interest deposit British Government Stocks Fixed Interest Hedge Funds Overseas Equities UK Equities Infrastructure Absolute Return Multi Asset/Property Funds Unlisted shares in joint venture/subsidiary at cost (see notes 15 and 16)

Charity 2019 2018 £ £ 3,910,351 4,988,148 329,243 392,634 (1,260,843) (1,293,921) 264,189 (176,510) ------------------------3,242,940 3,910,351 ======== =========

69,330 119,769 910,562 977,545 634,821 433,748 96,965

16,492 245,842 698,077 67,823 1,125,044 832,328 488,609 120,230 315,706

69,330 119,769 910,562 977,545 634,821 433,748 96,965

16,492 245,842 698,077 67,823 1,125,044 832,328 488,609 120,230 315,706

100 ------------3,242,840 ========

100 -----------3,910,251 =======

200 -----------3,242,940 =======

200 -------------3,910,351 ========

Valuation at 31 March is represented by: Cost Revaluation at 31 March

2,790,806 3,572,003 2,790,906 3,572,103 452,034 338,248 452,034 338,248 ------------------------------------------------3,242,840 3,910,251 3,242,940 3,910,351 ======== ======== ======== ======== The charity manages its investments risk by retaining the services of expert advisers and operating a comprehensive investment policy as detailed in the report of the governors.

14.

INVESTMENT PROPERTY Group Charity 2019 2018 2019 2018 Valuation £ £ £ £ At 1 April 2018 140,000 259,800 662,061 526,321 Additions at cost 2,141 255,540 Disposal proceeds (140,000) (140,000) (140,000) (140,000) Gain on sale of property 10,000 10,000 Revaluation 10,200 58,479 10,200 ---------------------------------------------At 31 March 2019 140,000 582,681 662,061 ======= ======= ======= ======== Investment property relates to land and buildings held as investment assets and rented out. The charity leases a property (cost £524,202) to its subsidiary which in accordance with FRS 102 is included in investment property for the parent only accounts and in own use tangible fixed assets in the group accounts.

Cost of the assets revalued are: -----------=======

Cost

Page 27

-----------129,800 =======

-----------524,202 =======

-----------651,861 ========

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

15.

SUBSIDIARY COMPANIES The charity has the following subsidiary companies: Subsidiary undertakings whose results have been consolidated in these accounts are: St Richard’s Hospice Trading Company Limited (Company No.: 04805373) Nature of business: Shop and commercial retailing. % Class of shares: holding Ordinary 100

2019 £ 282,835 (282,735) 100 ========

Aggregate assets Aggregate liabilities Aggregate capital and reserves

2018 £ 273,264 (273,164) 100 ========

The company had turnover of £1,958,158 (2018 - £2,029,323) and expenditure of £1,436,380 (2018 - £1,551,197) leaving profit of £521,778 (2018 - £478,126) which was distributed as a gift aid payment to this charity.

16.

INVESTMENT IN JOINT VENTURES Worcestershire Hospices Lottery Limited (Company no. 03689508) Nature of business: Fundraising % Class of shares holding Ordinary ‘B’ 33.33 The charity’s interest in the 12 months to 31 March 2019 of Worcestershire Hospices Lottery Limited are as follows: 2019 £ Turnover 185,650 Other income 522 Expenditure excluding audit fee (77,449) Audit fee (1,028) -----------Profit for the year 107,695 Gift aid distribution to charity (107,695) -----------Retained profit for the year ======= Fixed assets Current assets 50,684 Current liabilities (50,684) ======= Total assets less current liabilities 100 ===== Share capital 100 =====

2018 £ 184,932 693 (79,205) (1,148) ----------105,272 (105,272) ---------======= 1 51,922 (51,922) ======= 100 ===== 100 =====

At 31 March 2019 St Richard’s Hospice Foundation was owed £10,635 (2018 - £10,568) and £4,869 (2018 - £5,417) relating to trading balances by Worcestershire Hospices Lottery Limited. The carrying value of this company in the Group Balance sheet is £100 and forms part of the investments balance.

17.

STOCK

Group 2019 £

Goods for resale

91,972 =======

Page 28

2018 £ 110,441 =======

Charity 2019 2018 £ £ =====

=====

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) 18.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Unrestricted: Trade debtors Other debtors VAT Prepayments and accrued income Amounts due from Joint Venture Amounts due from subsidiary undertakings

19.

Group 2018 £

82,954 77,001 88,253 1,007,149 10,635 -------------1,265,992 ========

343,983 42,413 110,696 758,555 10,568 -------------1,266,215 ========

2019 £

Group 2018 £

142,589 94,435 133,519 488,520 -------------859,063 ========

63,591 119,970 124,216 898,348 -------------1,206,125 ========

118,218 94,435 133,519 375,202 -------------721,374 ========

46,272 119,970 124,216 780,407 ------------1,070,865 ========

6,484 -------------865,547 ========

4,244 -------------1,210,369 ========

6,484 -------------727,858 ========

4,244 -----------1,075,109 =======

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Unrestricted: Trade creditors Other creditors Social Security and other tax Accruals and deferred income

Restricted: Other creditors Accruals and deferred income

20.

2019 £

Charity 2019 £

55,672 77,001 74,126 906,605 10,635 157,995 -------------1,282,034 ========

2018 £

330,568 42,413 88,607 682,418 10,568 133,650 -----------1,288,224 ========

Charity 2019 £

2018 £

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (Continued) Included in accruals and deferred income is deferred income of £69,926 (2018 - £675,285) for the group and the charity and this is analysed below: GROUP AND CHARITY

Deferred income brought forward Released in year Deferred during year Deferred income carried forward

Education and training income inc. room rental £ 2,755 (2,755) 10,000 ---------10,000 ======

For events post year end £ 217,874 (217,874) 39,926 -----------39,926 =======

Grants and Donations £ 454,656 (454,656) 20,000 -----------20,000 =======

Total For Group & Charity £ 675,285 (675,285) 69,926 ----------69,926 =======

The amounts have only been deferred when the group does not have unconditional entitlement to the income or when the income relates to delivery of a service and is therefore only recognised to the extent that the charity has provided the service.

21.

CONTINGENT ASSETS As at 31 March 2019 the charity had been notified of 6 legacies, the values of which are unknown. As at the approval date of the financial statements no further information had been received and therefore this legacy income has not been accrued.

Page 29

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

22.

PENSION COMMITMENTS The company contributes to a defined benefit pension scheme operated by the NHS. Net NHS pension costs of £250,050 (2018 £236,327) were charged in the Statement of Financial Activities during the year. The company also contributed £112,120 (2018 £111,353) to some employees’ personal/work place pension schemes. Included in other creditors at 31 March 2019 was £34,674 (2018 - £34,340) in relation to the NHS scheme and £2,219 (2018 - £12,794) in relation to the work place pension scheme. The cost and liability is allocated between activities by reference to the area the employee is working in. The cost and liability is allocated against unrestricted funds unless a restricted fund allowed the expenditure.

The NHS scheme is a defined benefit scheme which is unfunded. This is a multi-employer pension scheme based on final pensionable pay, contributions being charged to the profit and loss account so as to spread the cost of pensions over employees’ working lives with the company. The company accounts for the scheme as a defined contribution scheme and is not required to account for any share of the assets or liabilities of the scheme in accordance with FRS 102. This is deemed appropriate as the company has no ongoing liability once the contributions to the scheme are made.

23.

RELATED PARTY TRANSACTIONS The group owned 33.33% of Worcestershire Hospices Lottery Limited, ownership and control is split equally between St Richard’s Hospice, Acorns Children’s Hospice Trading Limited and The Primrose Hospice Limited. D Corns (Senior Manager) and J G Bartholomew (Governor) are also a director of Worcestershire Hospices Lottery Limited. St Richard’s Hospice received £107,695 (2018 - £105,272) gift aid from Worcestershire Hospices Lottery Limited and charged £3,000 (2018 - £3,000) for rent, which is considered by the Governors to be a market value. St Richard’s Hospice Trading Company Limited paid £385 to Worcester Hospices Lottery Limited being the net amount of funds raised for selling scratch card. The payment to the Lottery company is net of commission to St Richard’s Hospice Trading Company Limited and prizes won. At 31 March 2019 Worcestershire Hospices Lottery Limited owed St Richard’s Hospice £10,635 (2018 - £11,040).

Professor T Thompson is a member of the NHS Joint Commissioning Board of Herefordshire and Worcestershire. This board oversees the commissioning of South Worcestershire CCG, Wyre Forest CCG and Redditch and Bromsgrove CCG the income from which can be seen in note 5, nothing was owed at the year-end.

St Richard’s Hospice Foundation was charged £775,482 by St Richard’s Hospice Trading Company Limited for administering the sale of goods gifted to the hospice and for which a gift aid claim was made. St Richard’s Hospice Trading Company Limited owed £142,940 to St Richard’s Hospice Foundation as at 31st March 2019.

24.

CAPITAL COMMITMENT There was a capital commitment of £785,597 at 31 March 2019 (2018 - £2,628,255).

25.

OPERATING LEASE COMMITMENTS The total future minimum lease payments under non-cancellable operating leases are shown below: 2019

GROUP Within one year Between two and five years Over five years

CHARITY Within one year Between two and five years Over five years

Land and Buildings £

2018 Other £

Land and Buildings £

Other £

338,728 822,222 100,416 ------------1,261,366 ========

3,060 2,943 ---------6,003 ======

321,989 841,988 65,500 -----------1,229,477 =======

9,679 13,770 2,051 ------------25,500 ========

------------========

3,060 2,943 ---------6,003 ======

---------======

5,960 12,306 2,051 ----------20,317 =======

The group has off balance sheet arrangements in the form of operating leases, which means that neither the liability under the lease nor the related assets appears on the Balance Sheet. The group uses operating leases so it has the benefit of leasing over a defined period and the risks are retained by the lessor.

Page 30

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued) 26.

PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES (Restated)

Notes

Total Total Unrestricted Restricted Fund Funds (Note 2) £ £

Total Funds 2018 £

INCOME FROM: Donations and Legacies

2

2,610,528

993,396

3,702,324

Charitable Activities

3

2,069,031

-

2,069,031

Other Trading Activities

4

3,347,483

-

3,347,483

Investments:

5

172,366

-

172,366

16

105,272

-

105,272

-------------8,403,080 ========

-----------993,396 =======

------------9,396,476 ========

Other - Share of net income of Joint Venture

TOTAL INCOME

EXPENDITURE ON: Raising Funds

6

2,827,802

64,357

2,892,159

Charitable Activities

7

5,599,887

205,197

5,805,084

------------8,427,689 ========

-----------269,554 =======

-------------8,697,243 ========

(24,609)

723,842

699,233

(156,310)

-

(156,310)

------------

----------

------------

(180,919)

723,842

542,923

9,797,897 -------------9,616,978 ========

3,709,008 ------------4,432,850 ========

13,506,905 -------------14,049,828 ========

TOTAL EXPENDITURE

NET INCOME/(EXPENDITURE) AND NET MOVEMENT IN FUNDS BEFORE GAINS/(LOSSES) ON INVESTMENTS Net gains/(losses) on investments

13 & 14

NET MOVEMENT IN FUNDS

RECONCILIATION OF FUNDS: TOTAL FUNDS BROUGHT FORWARD TOTAL FUNDS CARRIED FORWARD

27

Page 31

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

27.

RESTRICTED/UNRESTRICTED FUNDS The General Fund represents the free funds of the Hospice which are not designated for particular purposes. The investment fair value reserve represents the excess of fair value over the historic cost of the investments.

The designated fixed asset fund has been set up to assist in identifying those funds that are not free funds. It represents the net book value of tangible fixed assets excluding those tangible fixed assets funded from restricted funds.

The transfer from the general fund to the designated fixed asset fund of £6,244,266 (2018 - £530,990) for the group and charity represents unrestricted tangible fixed asset additions in the year and prior years.

The restricted Hospice fund was to provide a fund for the purchase of a new bedded unit. The fund balance at 31 March 2019 of £0 reflects a change in account treatment of restricted funds. When funds subject to a restriction is used to purchase a fixed asset, the restriction is deemed satisfied. This treatment applies to all funds, where they have been used to purchase an asset.

Restricted other funds represent amount held from many smaller grant making trust and others for various restricted purposes which, due to their individual size, are not to be disclosed separately in these accounts.

GROUP At 1 April 2018 £ General fund Investment fair value reserve Designated funds Fixed asset fund Total unrestricted funds Restricted funds Hospice Fund Community Care Fund IPU Extension Fund 2020 Capital Appeal Other Funds

Total funds

5,532,027

Income £

Expenditure £

8,361,223

348,448

(8,266,237)

Investment Gains £

Transfers £

At 31 March 2019 £

80,378

(312,216)

5,395,175

183,811

(80,225)

452,034

3,736,503 (334,374) 6,244,266 9,646,395 -------------------------------------------------------------------------------------------------------------------------9,616,978 8,361,223 (8,600,611) 264,189 5,851,825 15,493,604

2,175,501 (55,742) (2,119,759) 759,454 (17,662) (741,792) 611,340 (13,290) (598,050) 794,000 1,855,935 (249,012) (2,350,923) 50,000 92,555 150,433 (173,351) (41,301) 28,336 -------------------------------------------------------------------------------------------------------------------------4,432,850 2,006,368 (509,057) (5,851,825) 78,336 -------------------------------------------------------------------------------------------------------------------------14,049,828 10,367,591 (9,109,668) 264,189 - 15,571,940 =======================================================================

Should St Richard’s ever want to sell Wildwood Drive, it would need permission from the Big Lottery as this was a condition of funding, registered at Land Registry.

Page 32

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

ASSETS AND LIABILITIES REPRESENTING UNRESTRICTED FUNDS GROUP

General Fund Re: investment Fair Value Reserve £

General Fund £ FIXED ASSETS Tangible assets Investments Investments in joint venture

2,790,706 100

CURRENT ASSETS Stock Debtors (Note 18) Cash at bank

91,972 1,215,992 2,161,952

CREDITORS: Amounts falling due within one year (Note 19) Total Funds

Designated Fixed Asset Fund £ 9,646,395

(865,547) ------------5,395,175 ========

452,034

----------452,034 =======

------------9,646,395 ========

Total Unrestricted Funds 2019 £

Total Unrestricted Funds 2018 £

9,646,395 3,242,740 100

3,736,503 4,050,149 100

91,972 1,215,992 2,161,952

110,441 1,266,215 1,659,695

(865,547) ------------15,493,604 ========

(1,206,125) -------------9,616,978 ========

ASSETS AND LIABILITIES REPRESENTING RESTRICTED FUNDS

GROUP

Total Restricted Funds 2019 £

FIXED ASSETS Tangible assets Investments Investments in joint venture CURRENT ASSETS Stock Debtors (Note 18) Cash at bank CREDITORS: Amounts falling due within one year (Note 19) Total Funds

Page 33

Total Restricted Funds 2018 £

-

4,019,083 -

50,000 28,336

418,011

-------------78,336 ========

(4,244) -------------4,432,850 ========

ST RICHARD’S HOSPICE FOUNDATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 (Continued)

COMPARATIVE RESTRICTED FUNDS/UNRESTRICTED FUNDS GROUP At 1 April 2017 £ General fund Investment fair value reserve Designated funds Fixed asset fund Total unrestricted funds Restricted funds Hospice Fund Community Care Fund IPU Extension Fund 2020 Capital Appeal Other Funds

Total funds

5,625,237

Income £

Expenditure £

8,403,080

Investment Losses £

(8,090,878)

630,336

Transfers £

At 31 March 2018 £

(38,421)

(366,991)

5,532,027

(117,889)

(163,999)

348,448

3,542,324 (336,811) 530,990 3,736,503 -------------------------------------------------------------------------------------------------------------------------9,797,897 8,403,080 (8,427,689) (156,310) 9,616,978

2,231,243 (55,742) 2,175,501 777,116 (17,662) 759,454 624,630 (13,290) 611,340 840,830 (46,830) 794,000 76,019 152,566 (136,030) 92,555 -------------------------------------------------------------------------------------------------------------------------3,709,008 993,396 (269,554) 4,432,850 -------------------------------------------------------------------------------------------------------------------------13,506,905 9,396,476 (8,697,243) (156,310) - 14,049,828 =======================================================================

COMPARATIVE ASSETS AND LIABILITIES REPRESENTING UNRESTRICTED FUNDS GROUP General Fund £

Designated Fixed Asset Fund £

Total Unrestricted Funds 2018 £

FIXED ASSETS Tangible assets Investments Investments in joint venture

3,701,701 100

348,448 -

3,736,503 -

3,736,503 4,050,149 100

CURRENT ASSETS Stock Debtors (Note 18) Cash at bank

110,441 1,266,215 1,659,695

-

-

110,441 1,266,215 1,659,695

(1,206,125) ------------5,532,027 ========

----------348,448 =======

------------3,736,503 ========

(1,206,125) ------------9,616,978 ========

CREDITORS: Amounts falling due within one year (Note 19) Total Funds

28.

General Fund Re: investment Fair Value Reserve £

LEGAL STATUS OF THE CHARITY The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

29.

CONTROLLING PARTY The charity is under the control of its Governors.

30.

AGENCY NOTE St Richard’s Hospice Trading Company Limited acts as an agent to St Richard’s Hospice on selling second hand goods for which Gift Aid is claimed. Total Gift Aid sales were £954,135 and management charge for this service was £775,482.

Page 34