wakefield (a company limited guarantee) subsidiary undertaking
TRANSCRIPT
Wakefield Hospice(A Company Limited by Guarantee)
and its Subsidiary Undertaking
Company Number 02038416Registered Charity Number 518392
Trustees Annual Report, Strategic Reportand Financial Statements
Year ended 31 March 2018
Waketield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Trustees Annual Report, Strategic Report and Financial StatementsYear ended 31 March 2018
Contents
Page No
Company Information
Report by the Trustees
Report of the Auditors
Consolidated Statement of Financial Activities
Consolidated Balance Sheet
Parent Company Balance Sheet
Consolidated Cash Flow Statement
Notes to the Consolidated Financial Statements
17
18
19
20
21
The following pages do not form part of the statutory accounts
Detailed Incorue and Expenditure Account
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Year ended 31 March 2018
Reference and Administrative Information
Company Number
Registered Charity Number
Registered Office
02038416
518392
Aberford RoadWakefieldWest YorkshireWF1 4TS
Directors and Trustees T E Elms
J E Firth (Resigned 27 November 2017)G MortimerA P HowatsonD J MartindaleG W Cattell
J E SeniorNF Esmond (Appointed 27 November 2017)DJ Barker (Appointed 27 November 2017)D J Lumb (Appointed 27 November 2017)D Melia (Appointed 27 November 2017)M D Ashton (Appointed 26 March 2018)N Gunson (Appointed 26 March 2018, resigned 17August, 2018)
Secretary R M Hardill
Chairman G Mortimer
Treasurer
Senior Management
G Mortimer (Resigned 27 November, 2017)D J Barker (Appointed 27 November, 2017)
T R Turner —Chief executiveDr A M Seymour- Medical DirectorH M Knowles —Director of Fundraising and Retail
OperationsR M Hardill —Director of FinanceA M Harwood - Du'ector of Clinical Services
Auditors Jolliffe Cork LLP33 George StreetWakefieldWF1 1LX
Bankers Royal Bank of Scotland PicPO Box 4862SheffieldS2 9EQ
Waken''ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Chairman's Report
Dear friends and supporters of the hospice,I am delighted to be introducing this year's Annual Report on behalf of my Trustee colleagues, and to
be able to assure you that, once again this year, the hospice has risen to the challenges facing all ourhealthcare organisations.
My own relationship with the hospice has grown over many years, and I consider it a privilege towork with so many skilled and committed people, both those who are employed by the hospice, and
those who give freely of their time and energy,
The Board are encouraged to hear so many stories of patients, and their families and loved ones,
being cared for with compassion in the warm and uplifting environment of the hospice.This year has seen a number of very significant environmental upgrades to the building, including the
refurbishment of the in-patient unit which was almost exclusively funded by the generosity ofWakefield District Housing and Dulux, who provided labour and materials either free of charge or at
very reduced costs. These environmental improvements have directly supported patient experience,
and will help us to secure the latest CQC review of 'outstanding' in patient care.
2017/18 has been a year of considerable change in respect of our retail operations, with new
developments for the warehouse and for the shops, all of which are supporting our essential income
stream in respect of services for those approaching end of life. We recognise and acknowledge an
increasing reliance on the charitable contribution to our funding, in the context of a real terms
reducffon in our statutory funding via the NHS, we have never needed your help more than we donow.
More and more, we are indebted to those of you in our local community who support us throughout
the year, in your generous and unfailing donations, in your support of our shops and our events, and
in your consistent voluntary efforts in absolutely all areas of hospice life. We strive to recognise and
appreciate every one of you, those who are new to the hospice world, and those who have been
supporting us for over thirty five yearsI
This year's AGM was a rather high profile affair, with terrific support from the health and social care
community, and which provided an ideal opportunity to recognise and celebrate the many
achievements of our hard working teams; our grateful thanks go to all the staff and volunteers whose
efforts and endeavours, often above and beyond 'the call of duty', are very much appreciated. In
addition, we noted with gratitude and with affection, the long term commitment and contribution of
our colleague Jan Firth on her retirement from the Board after 13 years,
We have been fortunate to attract the support of a number of new trustee colleagues who were all
formally appointed to the Board after a period of introduction.
Our strategic intention over the coming years has been articulated in our revised Mission, Vision, and
Values statement and in the new tluee-year plan which is to be found in the main body of this report,
We would not be able to achieve any of these intentions without the constant and unwavering
support of our local community, If we are to maintain our priceless reputation for quality and
compassion, and deliver our services into and after our thirtieth anniversary year, we must face the
future with confidence, and in explicit partnership with others: it is in working together that we will
successfully build a service for the people of Wakefield when they most need us,
Gmy MortimerChair of Trustees,
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Trustees ReportThe Trustees present their Annual Report, including the Strategic Report, together with the audited
consolidated financial statements of the Charity and its subsidiary for the year ended 31 March 2018.
The reference and administrative information set out on page 1 forms part of this report,
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Articles of
Association, and Accountmg and Reporting by Charities: Statement of Recommended Practice
applicable to charities preparing their accounts in accordance with the Financial Reporting Standard
applicable in the LK and Republic of Ireland (FRS 102) (effective 1 January 2015).
Structure, governance and management
The Company is limited by guarantee and is governed by its Articles of Association. It is a Registered
Charity, number 518392. Wakefield Hospice Trading Limited is a wholly owned subsidiary.
The Memorandum and Articles of Association were updated on 28 January 2013 to reflect the
changing environment in which the Charity operates and were merged into a new set of Articles of
Association,
The Directors of the Company are listed on page 1 and are known as the Board of Trustees. Trustees
offering themselves for election or re-election are appointed by the serving trustees.
Trustees are appointed for an initial term of one year and may serve for two further full terms of three
years each, a maximum of seven years. At the end of their initial term or first three year term trustees
may seek re-election.
It has been agreed that an amendment to the Articles of Association should be made to the following
effect. Trustees who complete their term of office, and for whom exceptional circumstances apply,
may be asked by the Chairman to extend their term for a period of one year, and subject to review, for
a further period of one year if the Chair requests it.
If there are exceptional circumstances relating to the imminent retirement of the Chair, then a request
to extend their term may be made by the Vice Chair with the backing of the Board. The Chair may be
asked to extend their term for a period of one year and, subject to review, for a further period of one
year if requested,
Exceptional circumstances may possibly, though not exclusively, relate to the specific (and hard to
recruit) skill or experience of a trustee, a particularly challenging position for one or more hospice
departments, or for example, unusual turbulence in membership,
T E Elms and G Mortimer have served two full terms and are due to retire at the 20I8 Annual General
Meeting. N F Esmond, D J Barker, D J Lumb and D Melia have completed an initial term and are
eligible for re-election.
When a vacancy arises on the Board of Trustees or when additional specific knowledge is required to
supplement the expertise on the Board information is distributed throughout the relevant local
business/healthcare community and the post may be advertised in the local press and on the website.
Candidates complete an application form and, if considered suitable, are interviewed by the
Chairman and at least one other Trustee. If a suitable candidate is chosen, that person will attend at
least one Board meeting and one relevant sub-committee meeting in order to establish that there is
mutual interest and suitability prior to them being offered election to the Board.
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Structure, governance and management (cont)
New Trustees receive an induction pack providing guidance for Board members and attend induction
meetings at the Hospice with relevant staff in order to gain an understanding of the activities of the
Charity. Trustees are invited to training days at the Hospice and external training where appropriate.
All Trustees are required to sign a Declaration of Eligibility for appointment and a Declaration of
Interests. They are also required to follow a Hospice Code of Conduct for Trustees.
During the financial year the Board of Trustees and the Board of Directors of Wakefield Hospice
Trading Limited each met on 6 occasions.
Trustees are members of one or more coromittee depending upon their interest and expertise, the
Chair of trustees may attend any sub-committee.Clinical Governance and Quality met on 5 occasions and the members were J E Senior, J E Firth, A P
Howatson, G W Cattell, D Melia and N F Esmond.
The Finance, Estates and Resources Committee met on 6 occasions and the members were J E Firth, T
E Elms, D J Martindale, D J Barker, D J Lumb, M D Ashton and N Gunson,
Income Generation and Marketing met on 4 occasions and the members were T E Elms, G W Cattell,
D J Martindale and D j Barker,
The day-to-day operation of the service is the responsibility of the Hospice Senior Leadership Team
which reports to the Board of Trustees,
The Trustees and Senior Leadership Team continue to review the future direction of the Hospice.
From these discussions emerge the objectives to be achieved.
The pay of the Senior Leadership Team is in accordance with NHS Agenda for Change Pay Scales.
Standards are set in all areas of the Hospice and, along with the aims as set out in the business plan,
are monitored internally by staff using set down appraisal methods and, where appropriate, with
reference to the Trustees.
Within the trading subsidiary a Board of Directors, the majority of which are also Trustees of the
Hospice, report on the activities of the trading company to other Trustees at Board meetings.
There are 8 Fundraising Groups supporting the Hospice in the community. These groups operate
independently but with the support of the Hospice Fundraising Department to raise funds by means
of social activities.
Objectives and activities
Objectives
The primaiy charitable object of Wakefield Hospice, as set out in the Articles of Association, is to
promote the relief of sickness and the welfare of the terminally ill in the area of Wakefield and
District,
The Mission, Vision, and Values for the Hospice were recently reviewed and continue to articulate the
ethos and direction of the organisation as follows;
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Objectives (cont)
Mission:Wakefield Hospice, your local charity, providing expert care and support for local people and
families living with life-luruting conditions,We acknowledge the value of life and the importance of dignity in death: we endorse a holistic
approach in promoting quality of life for patients as well as providing the highest quality Palliative
and End of Life Care.
Vision.For the needs of people living with life-limiting illness, and those close to them, to be met with skill,
compassion and care,
Values:Professional, delivering high standards through team work from a well-trained workforce supported
by good governance.
Caring, treating each person with respect, empathy and kindness,
Ambitious, continually learning, developing and delivering excellence in all that we do,
These values underpin all that our charity aspires to and shape our external and internal behaviour.
Long term objectives have been approved and agreed as follows:
~ To provide high quality end of life care, giving equal consideration to the physical, emotional
and spiritual needs of patients, their families and carers;~ To offer care that is free of charge to patients who have been assessed as in need of specialist
palliative care;~ To foster independence for patients tluough the provision of appropriate rehabilitation services
and skilled multi-disciplinary team work;~ To support the continued professional development of all staff and contribute locally to
specialist palliative care and end of life care education through participation in, or delivery of,
specialist training and education;~ To promote a deeper understanding of Hospice care within the Wakefield and district
communities;~ To ensure judicious management of charitable funds in providing a quality, cost effective
service;~ To commit to working within national and local guidelines and frameworks for specialist and
end of life care services.
In continuation of this work, and on the basis of our consultation and collaborative statements above,
a three year strategic plan has been agreed, and will form the foundation of our future short and
medium term efforts.
Activities
Wakefield Hospice supports those in the local community with advanced, progressive and terminal
conditions: it also offers support to those who love and care for them, and for those who have been
recently bereaved,
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Activities (cont)
We do all we can to recognise and respect the individual needs and preferences of our patients and to
provide compassionate and skilful care so as to meet those needs. We work hard to maintain a calm
and uplifting environment where people feel welcomed and supported to manage their daily
experience of illness and difficulty: we strive constantly to ensure that our service is based on up to
date research and understanding and on a sound value base.
This year we have seen stability in our activity and a real-terms reduction in statutory funding,
despite this we have made every effort and endeavour to maintain the standards of provision which
were associated with our last 'outstanding' care rating from the CQC m 2014.
More recently we have been working on a new arrangement to support the pharmacy requirements of
the service, to improve and extend our access to specialist support and to ensure the safe and eflective
transition of purchasing arrangements for stock medicines,
We have continued to work in partnership to maintain and expand our contribution to the End of Life
Care ( EoLC) education requirements in the locality, and look forward to further strategic plans
coming to fruition through our EoLC Project work.
In terms of charitable incorae we have continued to raise approximately three quarters of our
outgoings, working on the basis of our strategic SWOT analysis and risk assessments and in the
context of a changing and volatile environment for fundraisers. We recognise the value of an
unimpeachable reputation, a sound and loyal donor base, and a consistently high legacy contribution,
but also the unpredictability of these in the face of today's financial climate,
Our retail outlets are well-known for the quality and diversity of their goods, and for the excellent
service and merchandising standards. It has been a challenging year for the shops, with pressure on
high street outlets to maintain relevance and profit margins. A range of new initiatives and constant
attention to detail have been reflected in a positive and improving retail income and the
implementation of a strategic plan in response to changing footfall and shopping preferences.
The fundraising team continue to develop new challenges and fundraising events in addition to
seeking funding from grants and charitable trusts, They were successful in attracting funding from
local business to support the refurbishment of the inpatient unit and from HSBC to support the
redevelopment of the gardens, Both initiatives contribute to the improved experience of patients,
visitors, volunteers and staff and our glorious new gardens provide opportunity for unproved
fundraising activities for years to come.
Over the last year there have been many organisations who have supported our work through
financial donations as well as sponsoring our events and campaigns, We would like to acknowledge
and thank them for their generous contributions.
Wakefield Hospice aims to generate funds in a cost effective and ethical manner, allowing the hospice
to continue to raise funds to provide specialist palliative care for patients. We are committed to the
highest standards of practice and that all our fundraising activities are legal, open, honest and
respectful.
Wakefield Hospice is registered with the Fundraising Regulator and adheres to the standards for
fundraising set out in the Code of Fundraising Practice and the I'undraising Promise.
General Data Protection Regulations —we are currently updating our systems to ensure we comply
with changes to the General Data Protection Regulations (GDPR) which came into effect from May
2018.
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Achievements and Perfonnance (cont)
Hospice staff, volunteers and service users have been engaged with the development of a three
year strategic plan to ensure the sustainability of the organisation in changing and challenging
times. Our commitment has been to align this plan with the local and regional Sustainable and
Transformation Partnerships (STP) planning process, and to retain and increase our influence in this
regard, Indeed, End of Life Care (EoLC) plarmtng, led by the hospice to a large degree, has been
recognised and commended, and used as a model for the development of other local cross-agency
services. The EoLC Case for Change, which recommends a formal contractual alliance between all
local EoLC providers, was approved in March 2018 by the Clinical Commissioning Group (CCG)Governing body and this will determine the work programme for the next two years.
The Information Governance (IG) toolkit was completed successfully for Wakefield Hospice, and
there have been significant developments in electronic information sharing, including a formal
agreement with hub partners, which facilitates the use of Systml and future engagement with the
emerging Patient Information Care (PIC) file.
Our strategic plan recognised the need for an increased range and diversity of income
generation opportunities, including more and different community evenS, a huge retail
development with a new outlet in George Street, and relocation of the warehouse involving massive
efforts from staff and volunteers, and resulting in improved opening hours, an extended range of
products and substantial savings on property costs.
A new and exciting collaborative initiative with HM Prisons New Hall and Wakefield has
resulted in the development of an additional shop facility and upcyclmg scheme wluch contribute
to income for the hospice whilst improving the mental well-being and rehabilitation opportunities
for residents, This bold new development has presented opportunities for a national roll-out of the
scheme in future years, and will feature in our plans for improved income generation and public
awareness raising,
During the year our single biggest event has been the 22nd Annual Hospice 10k run, raising
almost 680k with fantastic support from the local community, and now arranged with an interesting
'10k-a-day-in-May' spin as an additional fundraising and awareness event,
Our 2017 on-line Bed-Appeal arose from a recognition that our bed stock was ageing and
proving not just expensive but almost impossible to sustain in terms of maintenance and repair. A
massively successful appeal raised the required funds, and led to positive and successful
relationships with Wakefield District Housing and Penny Appeal, an international Muslim charity
which is based in Wakefield.
Volunteering continues to be a major source of support for the hospice, and we undertook to
extend our volunteer roles, to focus specifically on reaching out to younger volunteers, and to
unprove training and support for all our volunteers, some of whom have been recognised for a
contribution spanning over 35 years. This new drive has seen success in terms of our engagement
with corporate business partners, college students, and further engagement with local schools,
Education in terms of Special Palliative Care also continues to be a focus of our efforts, and
there has been sustained improvement in tenne of our engagement with other local partners to
extend and develop training opportunities for staff in a wide range of organisations, especially in
terms of advanced communication skills where we have been able to offer a nationally accredited
trainer.
This emphasis on extending educational opportunities has been lived-out in house in terms of a
comprehensive programme for hospice staff during the weeks early in 2018 when the inpatient unit
was closed to admissions to facilitate the refurbishment work,
Other initiatives in terms of clinical services have included the Look Good Feel Better groups,
the introduction of Palliative Care outcome tools, extended patient-feedback arrangements, and
plans to develop our bereavement services with the successful appointment of a new Bereavement
Counsellor,
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Achievements and Performance (cont)
The successful Admiral Nurse initiative in collaboration with Dementia UK continues to focus
on the EoLC needs of local people with dementia and their carers,
With a new emphasis on collaboration across agencies, and the development of the formal
Alliance, we also acknowledge the value and significance of the 7-day admissions services and the
24 hour helpline, which despite further decreases to statutory funding have seen an increase in
activity this year.
In terms of support services, we have been aware of the need to develop and implement an
action plan in response to the changing requirement of the GDPR, and have used our relationship
with Information Technology specialists, and the opportunity to employ a consultancy based
response and to prepare for the new IG Toolkit.
Acknowledging that the most significant risk to the hospice lies in terms of its financial
sustainability, a formal review of financial processes and systems was commenced, and has led to a
useful modelling of the financial position over the following three years. The intention is to use this
intelligence to undertake a review of all clinical services, and to redesign them in line with the
changing needs of the community and the anticipated financial challenge,
Financial Review
Income for the year was 63,986,524 which is an increase of 6188,732 on the f3,797,792 received in
2016/17,
An overall increase of 677,812 in donations and legacies is attributable to modest increases in
donations, gifts and legacies and an increase f34,975 in trust income reflecting a successful year in
trust fundraising.
Income from other trading activities has increased by EI04,291 mainly owing to increased fundraising
activity as a result of 2 Wakefield 10K events falling in the same year.
Incoming resources from Charitable Activities has mcreased by &1,818 despite a further. decrease of
813,486 of the grant for 24/7 Admissions,
Regular Investment Income has reduced by 85,189 following the realisation of investments to support
cash flow.
Expenditure for the year was 64,266,591 an increase of 6119,685 partly attributable to additional
fundraising events and the effect of the inclusion of retail stock in 2016/17.
The net deficit from operational activities for the year amounted to 6280,067 against a deficit of
6349,114 in 2016/17 an improvement of f. 69,047.
Reaiised and unrealised gains on investments increased by C102,116 to a gain of 6219,455 in 2017/18.
The net movement in funds for the year of 660,612 is a decrease in the deficit by 6171,163 on the net
movement in funds of f231,775 for 2016/17.
The overall financial positon is an improvement on 2016/17 and reflects the efforts of all staff to
increase income and keep costs to a muumum.
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Financial Review (cont)
Wakefield Hospice Trading Limited
The Trading Company deals with the sale of new goods and all profits are donated to Wakefield
Hospice, The gift aid donation from the trading subsidiary to the Hospice has seen a small reduction
in profits of 6436 to Q.8,190.
Reserves
Wakefield Hospice is a charitable organisation which provides health care services which are free of
charge at the point of delivery, The funding of the service relies largely upon public donations and a
smaller grant from statutory sources. Due to unpredictable income sources it is vibaI that reserve
funds are retained, the level of which can be explained and justified by reference to a Reserves Policy,
During the year the Trtrstees undertook an in depth review of the reserves policy in conjunction with
financial forecasting and investments,
In reviewing the policy the Trustees took into account a number of factors;
Income — having reviewed the risks associated with each income source the following risks were
noted:~ Statutory funding may cease or substantially reduce~ Legacy income fluctuates year on year~ Retail and fundraising operations may operate at reduced levels
~ Inflationary pressures and the consequent loss of the real term value of income
Expenditure —the following assumptions have been made in determining the minimum expenditure
required to maintain the same level of service in the In Patient Unit and Day Therapy Unit
~ A minimum of six months budgeted clinical costs after anticipated savings is required
~ Fundraising and Retail expenditure would be covered by the respective income
~ Ongoing commitments such as leases and contracts would be met
~ Essential capital or development work would be factored into the budgets
Having considered the above factors it is agreed that a contingency reserve should be retained of:
~ Six months budgeted running costs, excluding fundraising and retail
~ Cost of lease commitments up to date of respective break clause
~ Known capital or contractual commitments
The policy will continue to be reviewed annually.
The total reserves of the charity at 31 March 2018 amounted to f5,971,390 of which 63,181,413
represents Free Reserves. This value of the Free Reserves has been discounted to f3,049,943 to eke
into account the potential effect of selling the rental properties not currently on the market at short
notice. The discounted Free Reserves are sufficient to cover the required reserves of Q.,664,647. The
trustees accept a +/- 10'/o tolerance level and following the revision of the Reserves Policy the current
level of reserves exceed this by E1,218,83L Any excess will be under constant review,
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Investments (cont)
The Investment Policy has also been reviewed in depth in conjunction with the Reserves Policy and
financial forecasting
The Investment objective of Wakefield Hospice is to produce the best financial return from the
Reserves, within an acceptable level of risk.
Funds which can be invested equate to the value stated in the current reserves policy, that being six
months budgeted running costs, excluding fundraising and retail, future lease commitments and
known capital or contractual commitments.
The spread of investments should take into account the liquidity requirements of the charity and the
trustees have agreed to retain cash within the reserves sufficient to cover the greater of:~ The amount to cover any projected deficit over the next two years~ The sum of 6150,000
Subject to the above at least 50 70 of investments should be realisable within three months.
To re-balance the current investment spread the trustees have agreed to sell Investment Properties up
to the value of 6750,000. In anticipation of these sales six properties were revalued at 31 March 2018
for sale purposes and the revised values reflected in the accounts.
Trustees provide guidelines to their appointed agents on areas where investments should not be
made, No investment will be made in any company that derives its mcome from tobacco or tobacco
related products and the Portfolio is reviewed quarterly to exclude any such stocks.
The investment manager must demonstrate that there is a spread of investments included in their
portfolio. Tnrstees monitor investments on at least a quarterly basis and require a quarterly report
from the investment manager, an annual presentation of the portfolio to which all Trustees are invited
and regular meetings with the investment manager to ensure clear understanding of future intentions
and forecasts.
Trustees require a quarterly report from the property agent and an armual presentation. The
investment properties are revalued every three years,
Plans for future periods
The development of a new strategic plan, captured in the matrix below, has focussed the attention of
ourselves and our stakeholders, and resulted in the following specific intentions:
Further and more formal development of our partnership working —including with the New
Models of Care (NMOC) Board, the Connecting I lealth and Social Care Partnership Board
(CHSCPB), the formal Alliance Project Board, and with colleagues at the local Prince of Wales
Hospice.
Construction of a more explicit and comprehensive Communication strategy, to support
improved internal and external communications, especially relating to the significant change
agenda which will be the context of our work over the next two years.
An explicit intention to work towards supporting improvements in EoLC in the wider
community eg in the Care Homes sector
An acknowledgement that clinical services must be reviewed and redesigned in the context of
changing needs and challenging funding.
The developmeni. of a sustained and extended service to those living with dementia.
A completion of the arrangements to transfer responsibility for improved pharmacy services.
10
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Plans for future periods (cont)
A continuation of and increased use of Outcome measures, and the development and early
implementation of our service-user engagement strategy
I'urther consolidation and development of retail operations, including at thc Ridings, with E-
Bay, and with Penny Appeal,
Further and more ambitious development in terms of environmental improvements including
in the gardens, in the reception area, and in terms of access arrangements to the hospice site,
Use of consultant to review Information Technology needs, produce action plan and implement
those actions requiring technical expertise.
Completion of the review of financial systems and processes.
Development and early implementation of the preparation programme for Hospice 30th
Anniversary celebrations during 2020
To build on the foundation of almost thirty years of expertise and learning: collaborate with others
to sustain and develop the Wakefield Hospice contribuffon to the care and support of our community.
Ensure the sustainability of service Maximise impact and value Work in partnership and
provision - future planning to through quality and efficiency - achieve even more - to deliver
continue the mission, to drive the ambition. the vision,
Build a safe and effectiveorganisation on the basis of soundgovernance principles.
Maxhnise the potential of an agreedand extended and diverse range ofIncome Generation inifiatives.
Develop and deliver high qualityand equitable services to meetthe EoLC needs of our localcommunity,
Foster a VFM culture whereresource efficiency andeffectiveness is valued andencouraged,
Build and implement a service-user strategy appropriate for the
EoLC arena, and which respectsand reflects the hospice values.
Review and extend ourVolunteer Services strategy tomaximise the potential ofvoluntary contribution across the
service.
Construct and implement a
comprehensive Communications
Strategy to raise the profile of the
Hospice and increase influence in
the wider Health and Social Carecommunity,
Develop a high performingworkforce, operating in a culture oiengagement and innovation,
Ensure the provision of a
physical environmentappropriate for a modern careand business environment.
Develop the IT infrastrucbu'eand management systems tofurther support the hospicefunctioning.
Engage fully with ourcommissioning colleagues,undersmnding and exceedingtheir expectations,
Build relationships with otherservice-providers, influencingthe development of the local and
regional services,
Develop and extend the reach of the
hospice education services,maximising in-house impact andexternal hrfluence,
Review and refresh the
framework of hospice supportservices in terms of function,structure, and delivery.
Engage productively with youngpeople, offering education and
experience, and benefitting fromtheir contribution bothpractically and notionally.
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Waketield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Trustees for the year ended 31 March 2018
Risk Management
A structured assessment of the strategic risks facing the hospice identified three key areas, financialsustainability, clinical risk, and reputation. Measures are in place as part of the ongoing operationalsystems and processes to manage and mitigate risks in all three areas, and the clear identification ofthe financial risk as the most significant challenge for the hospice at this time resulted in the six pointaction plans referred to above,
Trustees responsibilities for the financial statementsThe Trustees (who are also directors of Wakefield Hospice) are responsible for preparing the Trustees'
Annual Report, Strategic Report and the financial statements in accordance with applicable law and
United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give
a true and fair view of the state of affairs of the charitable company and the group, and of the
incoming resources and application of resources, including income and expenditure of the charitable
group for that period. In preparing those financial statements the Trustees are required to;
~ select suitable accounting policies and apply them consistently;
~ observe the methods and principles in the Charities SORP,
~ make judgements and estimates that are reasonable and prudent;
~ state whether applicable UK Accounting Standards have been followed, subject to any
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 operation.
The Trustees are responsible for keeping proper accounting records that 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, They are also responsible for
safeguarding the assets of the charitable company and the group and hence for taking reasonable
steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial
information included on the charitable company's website. Legislation in the United Kingdom
governing the preparation and dissemination of financial statements may differ from legislation in
other jurisdictions.
Statement as to disclosure of information to auditors
In so far as the Trustees are aware at the time of approving our Trustees' Annual Report:
~ there is no relevant information, being information needed by the auditor in connection with
preparing their report, of which the group's auditor is unaware, and
~ the Trustees, having made enquiries of fellow hustees and the group's auditor that they
ought to have individually taken, have each taken all steps that he/she is obliged to take as a
trustee in order to malce themselves aware of any relevant audit information and to establish
that the auditor is aware of that information.
12
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Report by the Tr'ustees for the year ended 31 March 2018
Auditors
The Auditors, Jolliffe Cork LLP, will be proposed for re-appointment at the forthcoming Annual
General Meefing.
On behalf of the Board;
G CattellTrusteeWakefield HospiceAberford RoadWakef ieldWF1 4TS
Dated; 29 October 2018
13
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Independent Auditors' Report to the Members and Trustees of Wakefield Hospice
Opinion
We have audited the financial statements of Wakefield Hospice (the 'charitable parent company') and
its subsidiary undertaking (the 'group') for the year ended 31 March 2018 which comprise theconsolidated statement of financial activities, consolidated balance sheet, company balance sheet,
consolidated cash flow statement and notes to the financial statements, including a summary ofsignificant 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 ofIreland (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 charitable parent company's affairs as
at 31 March 2018, and of the group's incoming resources and application of resources,including its income and expenditure, for the year then ended;
~ have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting 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 ofthe group and charitable parent company 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 fulfllled 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.
Condusions 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 trustees' use of the going concern basis of accounting in the preparation of the financial
statements is not appropriate; or~ the trustees have not disclosed in the financial statements any identified material uncertainties
that may cast signtflcant doubt about the group's or charitable parent company's ability tocontinue 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 trustees are responsible for the other information. The other information comprises the
information included in the trustees' annual report, other than the financial statements and ourauditor'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 ofassurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with
14
Waketield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Independent Auditors' Report to the Members and Trustees of Wakefield Hospice
Other information (cont)
the financial statements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If we identify such material inconsistencies or apparent material misstatements, we arerequired to determine whether there is a material misstatement in the financial statements or amaterial misstatement of the other information. If, based on the work we have performed, weconclude that there is a material misstatement of this other information, we are required to report thatfact.We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
~ the irdormation given in the trustees' report (incorporating the strategic report) for the financialyear for which the financial statements are prepared is consistent with the financial statements;and
~ the trustees' report (incorporating the strategic report) has been prepared in accordance withapplicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the charitable parent company andits environment obtained in the course of the audit, we have not identified material misstatements inthe trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act2006 requires us to report to you if, in our opinion:
~ the group or charitable parent company have not kept adequate accounting records, or returnsadequate for our audit have not been received from branches not visited by us; or
~ the charitable parent company financial statements are not in agreement with the accountingrecords and returns; or
~ certain disclosures of trustees' remuneration specified by law are not made; or
~ we have not received all the information and explanations we require for our audit; or
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement set out on page 12, the trustees(who are also the directors of the charitable company for the purposes of company law) areresponsible for the preparation of the financial statements and for being satisfied that they give a trueand fair view, and for such internal control as the trustees determine is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud orerror.
In preparing the financial statements, the trustees are responsible for assessing the group's and thecharitable parent companies ability to continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unless the trustees eitherintend to liquidate the group or the charitable parent company or to cease operations, or have norealistic alternative but to do so.
15
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Independent Auditors' Report to the Members and Trustees of Wakefield Hospice
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditors under the Companies Act 2006 and report in accordance with
that Act.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 reportthat 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 economicdecisions 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 ah www. frc.or .uk auditorsres orrsibflities. This descriptionforms 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 anauditor'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.
Claire Lawton FCA DChA (Senior Statutory Auditor)For and on behalf of Jolliffe Cork LLPChartered Accountants and Statutory Auditor33 George StreetWakef ieldWF1 1LX
29 October, 2018
16
Wakef ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Consolidated Statement of Financial Activitiesfor the year ended 31 March 2018
Notes
IncomeDonahons and Leganes'.
Donations and giftsLegaciesGrants / Sponsored
income from other trading activities
Fundraising and other activitiesRetail IncomeLotteryGeneral Income
Investment Income
Investment IncomeWakefield Hospice Trading LimitedGain on sale of Fixed Asset
Income from charitable activth'es:
CCG grant for specialist care24/7 AdmissionsEducationOther GrantsSundries
UnrestrictedFunds
527,690598,37053,500
643,519814,291
59,37736,678
108,37118,1902,250
908,658100,000
65,93733,017
2,931
RestrictedFunds
8,687
5,058
Total2018
536,377598,370
58,558
643,519814,291
59,37736,678
108,37118,190
2,250
908,658100,000
65,93733,017
2,931
Total2017
E
518,010573,900
23,583
511,523850,10746,11241,832
115,37418,626
908,658113,48646,27927,346
2,956
Total income 3,972,779 13,745 3,986,524 3,797,792
Expenditure onCost of raising funds.
Fundraising costsRetail CostsGeneral Income costs
Investment management costs
Expenditure on charitable activities
Hospice inpatient unit, day care and
carer supportFducationBereavement
528,033817,572
3,13727,578
2,806,03658,38711,500
528,033817,572
3,13727,578
14,348 2,820,38458,38711,500
470,448756,869
5,12327,265
2,823,70351,95611442
Total expenditure
11 Net fttcome from operationalactivities for the year
6 Unrealised doss)/gam on tnvestments
4,252,243
(279,464)
219,455
(603) (280,067) (349,114)
219,455 117,339
14,348 4,266,591 4,146,906
Net movement in funds for the year
Reconciliation of fundsTotal funds brought fonvardTmnsfer Restricted to Designated Fund
(60,009) (603) (60,612) (231,775)
6,022,889 9,113 6,032,002 6,263,777
11 Tvtal /rends carried fonoard 5,962,880 8,510 5,971,390
The statement of financial activities includes aII gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
6,032,002
17
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Consolidated Balance Sheetas at 31 March 2018
Notes 20186 8
2017
Fixed assets
6 Investments7 Tangible assets
2,326,6402,781,467
5,108,107
2,399,8232,835,386
5,235,209
Current assets
8 Stocks9 Debtors
Cash at bank and in hand
105,059439,701743,121
1,287,881
69,897677,752462,611
1,210,260
Liabilities
10 Creditors: amounts falling duewithin one year
Net current assets
(424,598)
863,283
(413,467)
796,793
Total net assets 5,971,390 6,032,002
The funds of the Charity
11 Revenue reserves12 Designated reserves12 Capital reserve
3,184,922304,662
2,481,806
3,191,615266,487
2,573,900
5,971,390 6,032,002
The financial statements on pages 17 to 35 were approved by the Trustees on 29 October, 2018
and signed on their behalf by:
G Cattell - Trustee D J Barker - Trustee
18
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Parent Company Balance Sheetas at 31 March 2018
Notes 2018 2017
Fixed assets
5 Intangible asset6 Investments7 Tangible assets
1
2,326,640
2,781,467
5,108,108
12,399,8252,835,386
5,235,212
Current assets
16 Stocks9 Debtors
Cash at bank and in hand
98,224457,891724,216
63,938695,379439,102
Liabilities
1,280,331 1,198,419
10 Creditors, amounts fallingdue within one year (425,464) (410,044)
Net current assets 854,867 788375
Total net assets 5,962,975 6,023,587
The funds of the Charity
11 Revenue reserves11 Designated Reserves12 Capital reserve
3,176,507304,662
2,481,806
3,183,200266,487
2,573,900
5,962,975 6,023,587
The financial statements on pages 17 to 35 were approved by the Trustees on 29 October, 2018
and signed on their behalf by:
G Cattell - Trustee D J Barker - Trustee
19
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Consolidated Cash Flow Statementfor the year ended 31 March 2018
2018 2017
Cash used in operating activities:Net cash provided by operating activities(Note 1)
Cash flows from investing activities (Note 2)
Change in cash and cash equivalents in the year(Note 3)
65,321
455,604
520,925
(560,166)
154,610
(405,556)
Cash and cash equivalents at beginning of the yearCash and cash equivalents at end of the year
Change in cash and cash equivalents in the year
634,274
1,155,199
520,925
1,039,830634,274
(405,556)
Notes to the Consolidated Cash Flow Statement
Reconciliation of net incoming resources tonet cash flow from operating activities
Net income for the year (as per the Statementof financial position)Adjustments for:—
Depreciation(Profit)/Loss on disposal of fixed assets
(Increase)/Decrease in stocksincrease)/Decrease in debtorsIncrease/(Decrease) in creditors
Net cash provided by operating activities
(280,067)
133,618(2,250)
(35,162)238,05111,131
65,321
(349,114)
141,135903
(65,962)(216,263)
(70,865)
(560,166)
Investing activitiesPayments to acquire tangible assets
Receipts from sale oi' tangible assets
Payments to acquire investments
Receipts from sale of investments
Receipt from sale of properties
(79,699)2,250
(76,441)609,494
(61,932)
(113,813)317,77312,582
Net cash provided by (used in) financing activities 455,604 154,610
Analysis of cash and cash equivalents
Cash at bank and in handInvestment cashInvestment managers dealing accounts
2018
743,121408,149
3,929
2017
462,611170,361
13302
Change inthe year
8280,510237,788
2,627
Total cash and cash equivalents 1,155,199 634,274 520,925
20
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018
1 Accounting policies
The principle accounting policies adopted, judgements and key sources of estimationuncertainty in the preparation of the financial statements are as follows:
Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting byCharities: Statement of Recommended Practice applicable to charities preparing their accountsin accordance with the Financial Reporting Standard applicable in the UK and Republic ofIreland (FRS 102) (effective 1 January 2015) — (Charities SORP (FRS 102)), the Financial
Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the CompaniesAct 2006.
The hospice meets the definition of public benefit entity under FRS102. Assets and liabilities are
initially recognised at historical cost or transaction value unless otherwise stated in the relevant
accounting policy note,
Group Financial Statements
The financial statements consolidate the results of the charity and its wholly owned subsidiary
Wakefield Hospice Trading Limited on a line-by-line basis. A separate Statement of Financial
Activities and Income and Expenditure Account for the charity has not been presented becausethe Trust has taken advantage of the exemption afforded by section 40B of the Comparoes Act
2006.
Going Concern
The Trustees consider that the charity has adequate resources to continue as a going concern
and have prepared the Accounts on the going concern basis. The most significant area of
concern in future years is the level of Statutory funding and the Tiustees are taking steps to
mitigate the risk of a significant decrease in Statutory funding
Fund Accounting
Unrestricted funds are available to spend on activities that further any of the purposes of the
charity. Designated funds are unrestricted funds of the charity which the Trustees have decided
at their discretion to set aside to use for a specific purpose. Restricted funds are where it has
been specified they should only be used for a specific area of work. The costs of raising and
administering such funds are charged against the specific fund.
21
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018(cont)
Accounting Policies (cont)
Incoming resources
Voluntary income is recognised in the Statement of Financial Activities when the Charity is
legally entitled to the income and the amount can be quantified with reasonable certainty.
For legacies, entitlement is taken on a case by case basis as the earlier of the date on which: the
charity is aware that probate has been granted, the estate has been finalised and notification has
been made by the executor(s) to the charity that a distribution will be made, or when a
distribution is received from the estate. Receipt of a legacy, in whole or part, is only considered
probable when the amount can be measured reliably and the charity has been notified of theexecutor's intention to make a distribution, If the legacy is in the form of an asset other than
cash or an asset listed on a recognised stock exchange, recognition is subject to the value of the
asset being able to be reliably measured and title to the asset has passed to the charity.
Fundraising income arises from events organised by the Hospice fundraising team. Where an
entry fee is payable for an event, that income is deferred until the event is held, in case the
event is cancelled and fees have to be repaid.
Grants received from the NHS for the provision of care are set out in a service level agreementwhich covers a particular year, The grant is accounted for when it is received. Other grants,
including grants for the purchase of fixed assets, are recognised in full in the statement offinancial activities in the year in which they are receivable.
Donated goods and services
Donated goods are recognised when the charity has control over the item, any conditions
associated with the donated item have been met, the receipt of economic benefit from the use ofthe item is probable and that economic benefit can be measured reliably.
Donated services or facilities are included in income at the estimated value of the gift to the
charity when received, based on the amount that the charity would have been prepared to payfor these services or facilities, with a corresponding entry in the appropriate expenditure
heading for the same amount.
Income from goods donated for sale in the charity's shops is recognised at the point of sale.
Resources expended
Expenditure is recognised once there is a legal or constructive obligation to make a payraent to
a third party, it is probable that settlement will be required and the amount of the obligation
can be measured rehably. All resources expended are accounted for on an accruals basis under
the I'ollowing headings.
Costs of raising funds comprises the cost of raising funds from voluntary income, grants,
fundraising events and retail activities.
Investment management costs comprise the costs of nmnaging the hospice's investment
portfolio including investment property repairs and renewals.
22
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)
Accounting Policies (cont)
Expenditure on charitable activities includes the cost of providing specialist palliative care and
support in the inpatient unit and day care, bereavement support and educational activities
undertaken to further the purposes of the charity,
Support costs comprise those costs which are incurred directly to support the work of the
hospice and include adminisiration, finance, personnel and office costs, Support costs are
allocated to an activity in proportion to the direct costs of that activity.
Vo brnteers
The value of the services provided by volunteers is not incorporated into these financial
statements.
Intangible Assets
Goodwill relates to the transfer of the trade in donated goods from Wakefield Hospice TradingLimited.
Tangr'bie fixed assets
Tangible fixed assets costing more than EI,000 are capitalised at cost including any incidental
cost of acquisition.The general policy is to provide depreciation at rates calculated to write off the cost less any
residual value over their estimated useful lives as follows;
Freehold land and buildingsAdditions to leasehold premisesFixtures, fittings and equipment-HospiceRetailMotor vehicles
50 yearsover the term of the lease
5 years5 Years4 years
Investments
Investments are a form of basic financial instrument and are initially recognised at their
transaction value and subsequently measured at their fair value as at the balance sheet date
using the closing quoted market price, except for the shares in the trading subsidiary which are
carried at cost. The Statement of Financial Activities includes the net gains and losses arising
on revaluation and disposals tluoughout the year,
Investment properties
Six investment properties were valued in March 2018 for sale purposes and the remaining
properties were revalued based on vacant possession with appropriate discounts depending
upon the type of tenancy. The next revaluation will be in March 2021.
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018(cont)
Accounting Policies (cont)Investments - Group
The investments of the group are as above except for the investment in Wakefield HospiceTrading Limited, which is eliminated on consolidation.
Stocks
Stocks of new goods are valued at the lower of cost and the estimated amount realisable from
disposal in the normal couzse of business,
A physical stocktake of donated goods for resale was undertaken at the year end, Physical
stock comprises items priced and recorded on the retail software, this was discounted by 25%,and open priced items or stack awaiting sorting which was discounted by 50%. In 2017 as a full
physical stocktake was not undertaken the valuation of the stock was based on April sales and
out of season stock at 50% of stock recorded as held in the warehouse.
Operating leases
Rentals applicable to operating leases are charged to the SOFA on a straight-line basis over the
lease term, even if payments are not made on such a basis.
Pension costs
Wakefield Hospice operates a defined contribution pension scheme, the assets of which are
held separately from those of the group in independently administered funds, The scheme is
open to all employees, except those staff who are active members of the NHS pension scheme.
The group contributes 4% (2017: 4%) of salary in respect of those employees who are members
of the Wakefield Hospice pension scheme.
For those employees who are active members of the NHS pension scheme, the group is obliged
to make contributions to the scheme at rates instructed by the NHS, currently 14% of salary
(2017: 14%), but has no commitment to make good an actuarial deficit nor entitlement to benefit
from surplus funding. The scheme is a multi-employer scheme and it is not possible to identify
the assets and liabilities attributable to the charitable group. Therefore, in accordance with FRS
102, the scheme is accounted for as a defined contribution scheme, All contributions to pension
schemes are charged to the SOFA as they fall due,
From 1 May 2014 Wakefield Hospice was required to automatically enrol any employees who
were not already members of a pension scheme and met certain criteria into a pension scheme,
A new defmed contribution pension scheme was set up, the assets of which are held separately
from those of the group in independently administered funds. The group contributes 2% (2017:
2%) of salary.
Deferred tux
Deferred tax is recognised in respect of all timing differences that have origuiated but not
reversed at the balance sheet date.
Legal status of the CharifyThe Charity is a company limited by guarantee and has no share capital. In the event of the
Charity being wound up, the liability in respect of the guarantee is lindted to LI per member of
the Charity.
24
Waket'ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 201S (cont)
Charity2018 2017
Group2018 2017
2 Net incoming resources
Net incoming resources are stated after charging;
Auditors' remunerationOperating lease rentalsDepreciation of tangible fixed assetsLoss on Disposal of Fixed AssetsLoss on Disposal of Investment Property
5,000123,457133,618
5,000133,804141,135
9037,418
7,000123,457133,618
7,000133,804141,135
9037,418
And after crediting:Profit on sale of fixed assetsProfit on sale of quotedinvestments
2,250
21,045 12330
2,250
21,045
12,330
12,330
3 Staff costsNo remuneration or expenses were paid to trustees during the year (2017;Nil), The Medical
Director also has a contract of employment with Mid Yorkshire Hospitals NHS Trust.
Other staff costs were as follows;Charity
2018 2017Group
2018 2017
Gross SalariesEmployers National Insurance
Employers Pension Contributions
Wages and salaries
62,767,288
230,348189 564
3,187,200
2,775,684224,998159 507
3,160,189
62,767,288 2,775,684
230,348 224,998189 564 159 507
3,187,200 2,160,189
The average number of persons employed by the Charity during the year was;
Charity2018 2017
Group2018 2017
Iqospice inpatient unit, day therapy andpatient supportFundraisingRetailAdministration
83112512
9211
12
83112512
9211
12
131 137 131 137
25
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)
Staff costs (cont)
Employees earning more than 660,000 per annum:Charity and Group
2018 2017f.
Between 660,000 and 669,999Between 670,000 and 279,999Between 680,000 and 689,999
All staff, excluding retail staff, are paid in accordance with NHS Agenda for Change Pay scales.
4 Analysis of total resources expended
Staffcosts
Othercosts Dep'n
SupportCosts
Total2018
Total2017
Cost of generating fundsFundraisingRetailPortfolio ManagementFeesGeneral Income Costs
250,004414,158
231,798320,460
27,5783,137
5,66221,096
40,56961,858
528,033817,572
27/783,137
470,448756,869
27,2655,123
Charitable activitiesI-Iospice inpatient unitdaycare and patientsupportEducationBereavement
2,139,01258,273
363,770 106,860 210,742 2,820,384 2,823,703114 - — 58387 51,956
11,500 11,500 11,542
2,861,447 958,357 133,618 313,169 4,266/91 4,146,906
Details of support costs
Finance IT& Admin
OtherCosts
Total2018
Total2017
FundraisingRetailHospice inpatientunit, day care andcarer support
35,33253,871
183,534
272,737
2,6854,094
13,949
20,728
2,5523,893
13,259
19,704
40/6961,858
210,742
313,169
36,54956,723
214,801
308,073
26
Waken''ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)
5 Intangible fixed assets - Charity Balance at Balance at1.4.17 Additions Disposals 31.3.18
Cost
Goodwill
Net book value
Goodwill
The Goodwill relates to the transfer of the trade in donated goods from Wakefield HospiceTrading Limited to Wakefield Hospice.
27
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)
2018 2017
Investments - Charity
Investment in Wakefield HospiceTrading Limited
Charities Official Investment Fund
Brought forwardDisposalsUnrealised gain/(loss) on investment
507,020(507,020)
542,302(96,369)61,087
Market value at 31 March 2018 507,020
Brought forwardAdditionsDisposalsUnrealised gain/0oss)on investments
411,64076,441
(81,429)860
455,560113,813
(209,073)51,340
Market value at 31 March 2018
Investment dealing accounts
407,512
3,927
411,640
1,302
Investment properties
Brought forwardDisposalsNet gain on revaluatron
1309,500
197,550
411,439
1329,500(20,000)
412,942
Investment cash1,507,050
408,1491,309,500
170,361
Total investments - Charity 2,326,640 2,399,825
6 Investment Properties were valued in March, 2018 for sale purposes by Claire KendallMRICS of Richard Kendall under the Charities Act 2011 and the Charities (QualifieSurveyors' Reports) Regulations 1992.The remaining investment Properties wererevalued by Simon Kendall MRLA, MNAREA of Richard Kendall based on vacantpossession values, discounted by 5% where the properties were subject to a conventionalAssured Shorthold Tenancy agreement and 30% for properties subject to RegulatedTenancy agreement, No properties were unlet at the time of the valuation. There havebeen no changes in the types of Tenancy since the date of the valuation.
The investment in Wakefield Hospice Trading Limited represenls a 100% holding hr the
ordinary share capital, The company is registered in England and its principal activityis that of the retail of merchandise through charity shops,
Investments - Group
The investments of the group are as above except for the investment in Wakefield HospiceTrading Limited, which is eliminated on consolidation.
28
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)
7 Tangible fixed assets - Charity Balance at Balance at1.4.17 Additions Disposal ~ 31.3.18
f. f. f.
Cost
Freehold land and buildingsAlterations to leasehold premisesFixtures, fittings and equipment-HospiceRetailMotor vehicles
3,286,789204,953
541,38152,44454,163
4,7736,184
68,742
3,291,56295,892 115,245
24,438 585,68552,444
24,275 29,888
4,139,730 79,699 144,605 4,074,824
Depreciation
Freehold land and buildingsAlterations to leasehold premisesFixtures, fittings and equipment-HospiceRetailMotor vehicles
613,385140,680
466,47141,28342,525
65,8319,697
46,6915,5805,819
95,892
24,438
24,275
679,21654,485
488,72446,86324,069
1,304,344 133,618 144,605 1,293,357
Net book value
Freehold land and buildingsAlterations to leasehold premisesFixtures, fittings and equipment-HospiceRetailMotor vehicles
2,673,40464,273
74,91011,16111,638
2,612,34660,760
96,9615,5815,819
2,835,386 2,781,467
29
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)
7 Tangible fixed assets - Group Balance at Balance at1.4.17 Additions Disposals 31.3.18
f. e
Cost
Freehold land and buildingsAlterations to leasehold premisesFixtures, fittings and equipment-HospiceRetailMotor vehicles
3,286,789204,953
541,38152,44454,163
4,7736,184
68,742
3,291,56295,892 115,245
24,438 585,68552,444
24,275 29,888
4,139,730 79,699 144,605 4,074,824
Depreciation
Freehold land and buildingsAlterations to leasehold premisesFixtures, fittings and equipment-HospiceRetailMotor vehicles
613,385140,680
466,47141,28342,525
65,8319,697
46,6915,5805,819
95,892
24,438
24,275
679,21654,485
488,72446,86324,069
1,304,344 133,618 144,605 1,293,357
Net book value
Freehold land and buildingsAlterations to leasehold premisesFixtures, fittings and equipment-HospiceRetailMotor vehicles
2,673,40464,273
74,91011,16111,638
2,612,34660,760
96,96]5,5815,819
2,835,386 2,781,467
30
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)
Charity2018 2017
Group2018 2017
8 Stocks
New goods for resaleDonated Goods 98,224 63,938
6,83598,224
5,95963,938
98,224 63,938 105,059 69,897
9 Debtors
Trade debtorsOther debtorsPrepaymentsAccrued incomeGift Aid due from Trading Subsidiary
70,38630,64072,858
265,81718,190
50,59330,687
101,572493,901
18,626
70,38630,64072,858
265,817
51,40430,875
101,572493,901
457,891 695,379 439,701 677,752
10 Creditors
Falling due within one year;Amounts owed by subsidiaryTrade creditorsAccrualsDeferred incomeOther creditors
3,414286,85859,51514,99260,685
2,250190,719
48,34499,95668,775
287,31261,51514,99260,779
194,39450,34499,95668,774
410,044 424598 413,468
Deferred IncomeDeferred income comprises advance entry fees and income received in respect ofoccurring after 31 March 2018 and grants for training to be expended in 2017/18
Charity
events
Group
Balance as at 1 April 2017Amount deferred in the yearAmount released to income
99,95614,992
(99,956i
99,95614,992
l99,956)
Balance as at 31 March 2018 14,992 14,992
31
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018(cont)
Charity2018 2017
11 Revenue reserves
Group2018 2017
f.
Unrestricted funds - GeneralBalance brought forwardSurplus /(Deficit) for the yearTransfer (to)/from capital reserve
3,174,087 3,266,194(60,009) (172,214)53,919 80,107
3,182/02(60,009)53,919
3,274,609(172,214)
80,107
3,167,997 3,174,087 3,176,412 3,182,502
Restricted fundsBalance brought forward(Deficit)/Surplus for the yearTransfer (to) unrestricted fund—Designated
9,113(603)
73,674(59,561)
(5,000)
9,113(603)
73,674(59,561)
(5,000)
Total Restricted funds 8,510 9,113 8510 9,113
Total Revenue reserves 3,176407 3,183,200 3,184,922 3,191,615
Restricted fundThe restricted fund comprises donations and grants made to the Hospice for a specific purposebut which have not yet been applied to that purpose,
12 Capital reserve
Unrestricted fundsBalance brought forwardTransfer (to)/ from revenue reservesTransfer (to) unrestricted fund—Designated Fund
2,573,900(53,919)
2,656,481 2,573,900(80,107) (53,919)
2,656,481(80,107)
(38,175) (2,474) (38,175) (2,474)
2,481,806 2,573,900 2,481,806 2,573,900
Designated fundBalance brought forwardTransfer from unrestricted fundTransfer from Restricted fund
266,48738,175
259,0132,4745,000
266,48738,175
259,0132,4745,000
304,662 266,487 304,662 266,487
Total Capital Reserve 2,786,468 2,840,387 2,786,468 2,840,387
32
Waket'ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)
Capital reserve
The capital reserve comprises the net book value of the tangible fixed assets of the charitable
parent company, including the building from which Wakefield Hospice operates. Costsassigned to this fund represent the depreciation of these assets over their estimated useful lives.
Designated Fund
The Designated Fund has been transferred between revenue reserves and capital to reflectwhere the assets are held,
The Designated Fund includes the balance of various grants received and expended but not
charged in the accounts. The funds are reduced by any revenue expenditure and the balance
reduced over the useful Itfe of the asset in line with the depreciation charge,
13 Analysis of net assets between fundsParent
Revenue FundsLnrestricted Restricted
Intangible AssetsInvestments 2,321,640Tangible AssetsCurrent Assets 1,271,821 8,510Liabilities 425 464
Capital FundsUnrestricted Designated
15,000
2,476,805 304,6620 0
Total
12,326,6402,781,4671,280,331425 464
3 167 997 8 510 2 481 806 304 662 5 962 975
Consolidated
InvestmentsTangible AssetsCurrent AssetsLess: CurrentLiabilities
Revenue FundsUnrestricted Restricted
2,321,639
1,279,371 8,510
424 598
TotalCapital FundsUnrestricted Designated
5,001 2,326,640
2,476,805 304,662 2,781,4671,287,881
424 5983 176 412 8 10 2 481 806 304 662 5 971 390
33
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)
14 Operating lease commitments
At 31 March 2018 the following operating lease payments are committed to be paid by the
group:
Land and Buildings2018 2017
f.Expiring;Within one yearBetween one and five years
92,542145,729
100,80959,625
238,271 160,434
Motor Vehicles2018 2017
Expiring;Within one yearBetween one and five years
7,79611,044
2,137
18,840 2,137
15 Subsidiary company
The company has one wholly owned trading subsidiary. Wakefield Hospice Trading Limited,the principal activity of the company is the retailing of merchandise through charity shops. A
summary of the company's trading results is shown below:
2018 2017
Turnover 43,465 40,367
Cost of sales (23,114) (19,504)
Gross profit
Administration expenses
Operating profit 18,174 18,606
20,351 20,863
(2,177) (2,257)
Interest receivable and similar incomeGift aid donation to the holding company
16 20
(18,190) (18,626)
Net profit/(loss) for the year
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Comparative Statement of Financial Activitiesfor the year ended 31 March 2017
Notes Unrestricted RestrictedFunds Funds
E E
Total2017
IncomeDonahons and Legacies.
Donations and giftsLegaciesGrants / Sponsored
Income from oiher trading activities, '
Fundraising and other activitiesRetail IncomeLotteryGeneral Income
Investment Income
Investment IncomeWakefteld Hospice Trading LimitedGain on sale of Fixed AssetProceeds of Sale of Right of Way
income from chan table ar'. tiothes;
CCG grant for specialist care24/7 AdmissionsEducationOther GrantsSundries
509,886573,900
6,090
511,523850,107
46,11241,832
115,37418,626
908,6580
46,2790
2,956
8,124
17,493
113,486
27,346
518,010573,900
23,583
511,523850,10746,11241,832
115,37418,626
908,658113,486
46,27927,346
2,956
Total income 3,631,343 166,449 3,797,792
Expenditure onCost of raising funds;
Fundtaising costsRetail CostsGeneral Income costs
Investment management costs
Expenditure on chantable activities
Hospice inpatient unit, day care andcarer supportEducationBereavement
470,448756,869
5,12327,265
2,609,19351,956
42
470,448756,869
5,12327,265
214,510 2,823,70351,956
11,500 11,542
Total expenditure 3,920,896 226,010 4,146,906
11 Net income from operationalactivities for the year (289,553) (59,561) (349,114)
6 Llnreaiised doss)/gem oninvestments 117,339 117,339
Net movement in funds for the year (172,214) (59,561) (231,775)
Reconciliation of fundsTotal Funds brought forwardTransfer Restricted to Designated Fund
6,190,1035,000
73,674
(5,000)6,263,777
11 Total fimds carried forward 6,022,889 9,113 6,032,002
The statement of financial activities includes all gains and losses recognised in the year.All income and expenditure derive from continuing activities.
35
Waket'ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Detailed Income and Expenditure Accountfor the year ended 31 March 2018
Operating income 2018 2017
Voluntary IncomeSupport GroupsDonationsLegaciesComplimentary TherapyGifts in KindGrants & Trusts
50,712392,664598,370
3,30689,69458,558 1,193,304
50,610429,516573,900
2,59535,28923,583 1,115,493
Income from Other Trading ActivitiesFundraising incomeRetail incomeLotteryCateringCommunicationsRoom hireTrading incomeSundry income
643,519814,29159,37730,541
7332,2393,165
511,523850,10746,11228,592
8432,8105,562
1, 553,865 4,025 1,449,574
Income from Charitable ActivitiesCCG grants for specialist care
24/7 AdmissionsEducationBereavementCCG Grant for SystmOneCCG Grant for EoLC ProjectDemenda PostSundries
908,658100, 000
65,93711,500
6,8466,8287,8442,931
908,658113,48646,27911,5005,846
10,000
2,9561,110,544 ————— 1,098,725
Investment incomeBank interestDividendsGain on sale of investmentsUnrealised profit/(loss) on investmentsGift Aid from Trading SubsidiaryRental incomeGam on sale of Fixed assets
3,23630,81121,045
198,41018,19074,324
2,250 348,266
4,79536,5754,912
112,42718,62674,004
251,339
Total Income 4,205,979 3,915,131
Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking
Detailed Income and Expenditure Accountfor the year ended 31 March 2018(cont)
Brought forwardExpenditure
Expenditure on raising fundsFundraising costsFundraising salariesRetail expenditureRetail Property CostsRetail salariesGeneral Income Costs
20186
4,205,979
231,797250,00480,261
240,200414,158
3,137
2017
3,915,131
184,927242,39153,230
206,773403,171
5,123
Expenditure on CharitableStaff advertisingCateringCleaningClothingComplimentary therapyRepairs & renewalsMedical costsProfessional feesSalariesEducation costsEOLC ProjectStaff trainingLrnrecoverable VATSundriesMotor & travelBusiness RatesLight, heat &. water
Investment costsPortfolio management feesRental property expenditure
Support CostsBank char gesTelephoneInsuranceAudit feeSalariesPrinting, postage & stationeryGovernanceDepreciationLoss on Disposal of Fixed Assets
Staff Advertising & Training
1,219,557
54031,95611,31913231,410
109,16618,34543,395
2,197,28558,3872,465
15,3421,001
13,3164,9859,568
52,866
2,572,669
3,89523,683
27,578
3,61015,43012,326
5,090267,480
5,2982,288
133,618
1,647
1,095,615
3,43632,84815,755
2,4331,513
126,58220,39637,511
2,184,53451,9569,905
16,0691,2515,2886,484
10,43748,420
2,574,818
4,43122,834
27,265
3,43812,15710,1984,160
268,3477,922
948141,135
903
Net surplus(deficit) for the year
446,787 4,266391
(60,612)
449,208 4,146,906
(231,775)