Annual Report and Financial Statements
Children's Hospice South West Annual Report and Financial Statements for the year ended 31 March 2020.
Children's Hospice South West Annual Report and Financial Statements for the year ended 31 March 2020.
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong><br />
For the year ended 31 March 2020<br />
Company No. 02620879 (Engl<strong>and</strong> <strong>and</strong> Wales)
We are starting this report by saying<br />
a massive thank y u to every one<br />
of you who helps Children’s Hospice<br />
South West achieve its purpose.<br />
At the beginning of 2020 we were making great progress on our ambitious plans<br />
to grow our services <strong>and</strong> then in March everything changed. Within a matter of<br />
days as lockdown began we responded quickly to the ways families needed our<br />
help given that most were now ‘shielding’: for the first time we offered care in<br />
their homes <strong>and</strong> perhaps most importantly provided support ‘virtually’. We also<br />
needed to ensure that our hospices were ‘COVID-secure’.<br />
The p<strong>and</strong>emic also continues to have a seismic effect on fundraising: mass<br />
participation events are no longer possible <strong>and</strong> all our shops had to be closed.<br />
Thrillingly, however, new ideas for fundraising started popping into social<br />
media feeds <strong>and</strong> we saw our supporters, often the children themselves being<br />
incredible <strong>and</strong> raising funds. You can read some wonderful examples of how<br />
our staff <strong>and</strong> supporters rose to the challenge further on in the report.<br />
We have been able to continue supporting children with life-limiting illnesses<br />
<strong>and</strong> their families because everyone involved has quickly adapted to new ways<br />
of working through the COVID-19 p<strong>and</strong>emic.<br />
Recently times have been very challenging for everyone but as we look back over<br />
the past year we can see how much we have achieved. Looking forward to next<br />
year <strong>and</strong> beyond, although much will change in the way we do things fundamentally<br />
our purpose will not. We are here to make the most of short <strong>and</strong> precious lives<br />
<strong>and</strong> put children <strong>and</strong> families at the centre of all the charity does.<br />
Patricia Morris<br />
Chair of Trustees<br />
Eddie Farwell MBE<br />
Co-Founder <strong>and</strong> Chief Executive<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 1
Contents<br />
Trustees’ report 3<br />
Strategic report 6<br />
<strong>Financial</strong> statements 20<br />
Consolidated statement<br />
of financial activities 20<br />
Balance sheet<br />
(group <strong>and</strong> charity) 21<br />
Consolidated cash flow<br />
statement 22<br />
Notes to the<br />
accounts 23<br />
Accounting policies 38<br />
Audit report 42<br />
Structure<br />
governance <strong>and</strong><br />
management 44<br />
Reference <strong>and</strong><br />
administration 47<br />
Our fundraising<br />
st<strong>and</strong>ards 48<br />
Page 2 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Trustees’ report (including the Strategic report) for the year ended 31 March 2020<br />
ur objectives <strong>and</strong> activities<br />
Our purpose, vision <strong>and</strong> ethos<br />
ur purpose<br />
is to make the most of<br />
short <strong>and</strong> precious lives <strong>and</strong><br />
to put children <strong>and</strong> families<br />
at the centre of all we do.<br />
ur vision<br />
is to provide high quality care<br />
services to every child in the<br />
South West who may not live<br />
to their 18th birthday.<br />
ur ethos<br />
is to ensure that everyone<br />
(Trustees, staff <strong>and</strong> volunteers)<br />
place children <strong>and</strong> families at the<br />
centre of the organisation.<br />
In order to achieve this, everyone will be<br />
expected to promote a strong, caring,<br />
community environment, characterised<br />
by a culture of sensitivity, trust,<br />
consideration <strong>and</strong> respect for others.<br />
Organisational principles<br />
Our ethos gives rise to a set of principles which determine how Children’s Hospice South West (CHSW)<br />
as an organisation operates on a day to day basis.<br />
We will:<br />
Be an organisation which places<br />
children <strong>and</strong> their families at the<br />
heart of all that we do.<br />
Continually engage with <strong>and</strong> listen to<br />
our children <strong>and</strong> families, employees,<br />
volunteers <strong>and</strong> supporters.<br />
Be one organisation with common<br />
goals whilst tailoring services to<br />
individual families, <strong>and</strong> according<br />
to individual need.<br />
Ensure that diversity, integrity,<br />
quality <strong>and</strong> respect are an integral<br />
part of all that we do.<br />
Ensure that all staff, volunteers<br />
<strong>and</strong> supporters are valued <strong>and</strong><br />
appreciated.<br />
Ensure that everyone has the tools<br />
to do their job <strong>and</strong> are provided with<br />
appropriate opportunities to develop<br />
<strong>and</strong> gain new skills.<br />
Be ethical, open, honest <strong>and</strong><br />
compliant in all that we do.<br />
Spend the money we raise wisely<br />
with our focus being on the<br />
care we provide.<br />
Be safe, efficient <strong>and</strong><br />
environmentally aware.<br />
Work collaboratively with our<br />
colleagues <strong>and</strong> external partners.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 3
Trustees’ report<br />
CHSW c re values <strong>and</strong> behaviours<br />
Everyone working for, or on behalf of CHSW will act with / to:<br />
Care <strong>and</strong> respect<br />
for each other<br />
Honesty, openness<br />
<strong>and</strong> accountability<br />
Strive for<br />
excellence<br />
Work<br />
together<br />
Recognising <strong>and</strong> accepting<br />
our responsibility for<br />
safeguarding children <strong>and</strong><br />
adults, protecting them<br />
from harm.<br />
Acting fairly <strong>and</strong> with<br />
consideration, treating<br />
others as we would wish<br />
to be treated ourselves.<br />
Finding out what<br />
other colleagues do,<br />
encouraging them <strong>and</strong><br />
recognising the value<br />
that each brings to the<br />
organisation.<br />
Embracing <strong>and</strong> recognising<br />
the importance of<br />
difference <strong>and</strong> diversity.<br />
Behaving with openness,<br />
integrity <strong>and</strong> honesty.<br />
Communicating swiftly<br />
<strong>and</strong> openly <strong>and</strong> listening<br />
to the views of<br />
others respectfully.<br />
Taking responsibility for<br />
your own actions <strong>and</strong> being<br />
accountable for them.<br />
Sorting out mistakes<br />
<strong>and</strong> concerns swiftly<br />
<strong>and</strong> without fuss.<br />
Seeking to continuously<br />
develop <strong>and</strong> improve<br />
for your own benefit <strong>and</strong><br />
for the charity.<br />
Always protecting the<br />
reputation of the charity.<br />
Celebrating success.<br />
We value the hospice<br />
<strong>and</strong> the fabulous staff<br />
there beyond words.<br />
Ensuring dynamic<br />
<strong>and</strong> harmonious team<br />
working in order<br />
to achieve success.<br />
Working with <strong>and</strong><br />
involving our families,<br />
supporters <strong>and</strong> volunteers,<br />
underst<strong>and</strong>ing who<br />
they are <strong>and</strong> what their<br />
needs might be.<br />
Making the best use<br />
of organisational<br />
resources having regard<br />
to sustainability,<br />
efficiency <strong>and</strong> respect<br />
for the environment.<br />
Page 4 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Trustees’ report<br />
ur strategic objectives<br />
Following a review in January 2020, our strategic aims extending to 2024 were reviewed <strong>and</strong> agreed as follows:<br />
Care<br />
We remain committed to providing high<br />
quality, safe services to children who<br />
may not live to their 18th birthday.<br />
This includes respite care for the whole<br />
family <strong>and</strong> being responsive when<br />
families need us most including at end<br />
of life <strong>and</strong> support during bereavement.<br />
Our focus is to develop our care services<br />
sustainably, ensuring we utilise our<br />
three hospice bases <strong>and</strong> be there when<br />
families need us most.<br />
Strategic priorities to deliver this<br />
aim by 2024<br />
To have a care model that ensures we<br />
have capacity to offer respite care to<br />
children <strong>and</strong> families.<br />
To develop <strong>and</strong> grow our clinical<br />
expertise <strong>and</strong> resilience to respond<br />
when families need us most.<br />
Funding<br />
To afford our care objectives by<br />
delivering a step change in income<br />
generation to deliver additional<br />
annual income in excess of £2m<br />
(minimum) by 2024.<br />
Strategic priorities to deliver this<br />
aim by 2024<br />
Diversifying <strong>and</strong> developing<br />
voluntary income streams.<br />
Growing <strong>and</strong> strengthening retail<br />
(including Gift Aid).<br />
Growing net income from<br />
CHSW Lottery.<br />
Securing long term legacy pipelines.<br />
Securing continuing statutory<br />
funding (<strong>and</strong> increasing where<br />
possible).<br />
Marketing<br />
To re-energise our br<strong>and</strong> awareness<br />
<strong>and</strong> re-establish our positioning,<br />
ensuring we remain a leading br<strong>and</strong><br />
name in the South West <strong>and</strong> the<br />
charity of choice for charitable giving.<br />
Strategic priorities to deliver this<br />
aim by 2024<br />
Research <strong>and</strong> benchmark br<strong>and</strong> /<br />
hospice awareness, including<br />
review of logo recognition <strong>and</strong><br />
evolution of br<strong>and</strong> identity.<br />
Introduction of a campaign<br />
approach to drive br<strong>and</strong> awareness<br />
<strong>and</strong> donor acquisition.<br />
Defining <strong>and</strong> segmenting target<br />
audiences with clear messaging<br />
to ensure donor retention <strong>and</strong><br />
donation growth.<br />
To offer families choices with<br />
flexibility about how they access<br />
our services <strong>and</strong> where they wish<br />
to be at end of life.<br />
To build on the support services<br />
on offer including psychological<br />
support <strong>and</strong> sibling services.<br />
We have come to regard the hospice<br />
as a second home, a place where the<br />
whole family can relax <strong>and</strong> leave<br />
behind the stresses of everyday life.<br />
Progress against our strategic aims will be monitored, reviewed, <strong>and</strong> evaluated by the Senior Management Team<br />
(SMT) on a regular basis <strong>and</strong> by the assurance committees through Key Performance Indicators (KPIs) <strong>and</strong> board reports<br />
at each meeting (currently three times per year).<br />
Public benefit<br />
The Trustees confirm that they have referred to the guidance contained in the<br />
Charity Commission’s general guidance on public benefit when reviewing the<br />
charity’s aims <strong>and</strong> objectives. The benefits are clearly set out in the achievement<br />
section on pages 6-10. The Trustees review the activities of the charity against<br />
its aims <strong>and</strong> objectives on an ongoing basis <strong>and</strong> are satisfied that all activities<br />
continue to be related to its purpose. The beneficiaries are children <strong>and</strong> young<br />
people with life-limited <strong>and</strong> life-threatening conditions <strong>and</strong> their families. A<br />
referral process is in place, with clear guidance on criteria, to ensure that those<br />
who meet the criteria are offered support by the charity.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 5
Strategic report<br />
Amelia’s story<br />
Three-year-old Amelia has spina bifida <strong>and</strong> uses a wheelchair.<br />
She loves visiting Little Bridge House with mum, Jemma.<br />
The family was referred to CHSW by<br />
Amelia’s community children’s nurse <strong>and</strong><br />
Jemma admits that she was unsure about<br />
what to expect before their first visit.<br />
I always thought of a hospice being<br />
an end-of-life environment, but it was<br />
amazing,” said Jemma, “the building <strong>and</strong><br />
gardens are lovely, <strong>and</strong> the hospice<br />
team is so kind, caring, supportive<br />
<strong>and</strong> easy to talk too; they make you<br />
feel welcome each time you stay.”<br />
Jemma said the hospice gives the family<br />
time to enjoy <strong>and</strong> make the most of<br />
precious moments together. Gr<strong>and</strong>ma<br />
has also visited <strong>and</strong> stayed with them at<br />
Little Bridge House <strong>and</strong> Amelia’s daddy<br />
is hoping to come soon too.<br />
“We love coming to stay every few<br />
months <strong>and</strong> Amelia is always asking<br />
when we are coming back,” said Jemma.<br />
“The hospice gives us time with Amelia<br />
away from all the usual things happening<br />
at home such as appointments; it’s<br />
lovely to be able to spend quality time<br />
together doing fun activities with the<br />
help <strong>and</strong> support of the hospice team.<br />
“Amelia enjoys<br />
most things, such<br />
as the hydrotherapy<br />
pool, soft play area, the Narnia sensory<br />
garden <strong>and</strong> main garden but I think her<br />
favourite is music therapy <strong>and</strong> the doll’s<br />
house. She also enjoys painting <strong>and</strong><br />
making cakes with the hospice team.<br />
Jemma adds, “She really enjoys oneto-one<br />
attention <strong>and</strong> likes to be doing<br />
something all the time, which can<br />
be tiring on a daily basis. But having<br />
the help during our stay is lovely.<br />
I can’t thank them<br />
enough for everything<br />
they’ve done for us <strong>and</strong><br />
especially Amelia - they<br />
are amazing, like family.<br />
Sarah’s story<br />
Sarah was 16 years old when she was diagnosed with a brain tumour <strong>and</strong> cancer.<br />
At 17, she was offered a referral to Little Harbour <strong>and</strong> often visited with her family.<br />
Sarah juggled chemo with studies<br />
<strong>and</strong> radiotherapy with exams. From<br />
time to time, she would pop into<br />
Little Harbour for a well-earned break,<br />
to recharge her batteries <strong>and</strong> to be<br />
surrounded by the best care. But it wasn’t<br />
just Sarah who enjoyed visits to Little<br />
Harbour; our whole family immersed<br />
themselves in the support from the<br />
hospice, with Sarah’s brother Steve going<br />
on a siblings’ adventure weekend, Jane<br />
becoming part of the mum’s support<br />
group <strong>and</strong> myself having a go at a golf<br />
taster day with the other dads. We were<br />
able to put our complete trust in them.<br />
The Care Team at Little Harbour were<br />
with us every step of the way, guiding<br />
<strong>and</strong> supporting us, through palliative<br />
care <strong>and</strong> preparing us for end of life<br />
care. At the age of 24, Sarah passed<br />
away peacefully, in the very best place<br />
for her, surrounded by her family <strong>and</strong><br />
large collection of cuddly toys.<br />
Sarah had seen a lot of doctors, nurses<br />
<strong>and</strong> other health professionals in<br />
Cornwall <strong>and</strong> Bristol. She had been<br />
on children’s wards <strong>and</strong> also received<br />
treatment from adult services. The one<br />
constant was Little Harbour <strong>and</strong> the<br />
enduring care from the amazing team we<br />
had developed such a special bond with.<br />
We are eternally grateful to the whole<br />
team at CHSW <strong>and</strong> everyone who helps<br />
to raise money for families like ours.<br />
It’s during this immensely difficult time that you realise<br />
just how skilled <strong>and</strong> talented the Care Team really are.<br />
Page 6 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Freddie’s story<br />
Freddie has a range of complex medical needs<br />
<strong>and</strong> visits Charlton Farm with his family.<br />
Four years ago, when Freddie’s<br />
epilepsy was bad, was when we<br />
were introduced to Charlton Farm.<br />
I think a lot of people when they hear<br />
the word ‘hospice’ certainly don’t want<br />
to think about it, but for most people,<br />
it’s respite <strong>and</strong> having nurses there 24<br />
hours a day <strong>and</strong> people who can help.<br />
When I say to my friends we’re going<br />
to the hospice, they ask ‘is everything<br />
alright’? But I say we’re going for some<br />
respite, some family time <strong>and</strong> we’re able<br />
to pass over the care of Freddie. The staff<br />
are unbelievably accommodating. They<br />
know Freddie so well <strong>and</strong> he does what<br />
he wants, even if it means going in the<br />
hydrotherapy pool four times in a day!<br />
At the hospice, it’s my downtime <strong>and</strong> I<br />
don’t have to worry about meds or the<br />
times, or that Freddie is having water<br />
six times a day. And being able to go out<br />
with just Joseph <strong>and</strong> not have to take<br />
oxygen, emergency medications, the<br />
wheelchair - the whole entourage!<br />
Now my husb<strong>and</strong> <strong>and</strong> I are separated,<br />
we can both come <strong>and</strong> stay but we<br />
rotate the nights, which is good for<br />
Joe too as he gets one-to-one time<br />
with both of us; it’s a really nice<br />
arrangement. To know Freddie is really<br />
well cared for is so reassuring. I know<br />
if the worst happened here, everyone<br />
would know what to do. Hospitals are<br />
a sterile environment so it’s lovely to<br />
know you can come here where it’s calm<br />
<strong>and</strong> peaceful <strong>and</strong> you’re so supported,<br />
it’s like having a big, comfortable<br />
warm blanket around you. People are<br />
here to help <strong>and</strong> hug; it’s wonderful.<br />
With the respite I have, I<br />
dedicate it all to Freddie’s<br />
brother, Joseph. I really<br />
try <strong>and</strong> make an effort to<br />
give him more time.<br />
Lucas’ coronavirus story<br />
When Rachel <strong>and</strong> Jason both became ill with coronavirus, CHSW stepped in<br />
to help them through the unthinkable challenge of caring for their son, Lucas.<br />
Lucas has a rare genetic condition<br />
<strong>and</strong> needs around-the-clock care so<br />
the thought of not being able to look<br />
after him terrified us.”<br />
Within hours of making a panicked call<br />
to Little Harbour, the Care Team arrived<br />
at their family home to collect Lucas <strong>and</strong><br />
bring him to the safety of the hospice.<br />
“They were completely amazing,” said<br />
Rachel. “We felt a huge overwhelming<br />
sense of relief when they said they<br />
I hate the thought of<br />
people caring for Lucas<br />
who don’t know him, but<br />
we know he is completely<br />
safe at Little Harbour.<br />
could help as we were very poorly <strong>and</strong><br />
just couldn’t give Lucas the level of care<br />
he needed. There isn’t a part of Lucas<br />
that isn’t affected by his condition.”<br />
Sadly, within a few hours of arriving<br />
at the hospice, Lucas also developed<br />
COVID-19 symptoms. During the weeks<br />
that followed, the team at Little Harbour<br />
implemented new COVID-19 procedures<br />
to care for Lucas while ensuring their<br />
own safety. They maintained contact<br />
with Rachel <strong>and</strong> Jason with regular<br />
Zoom calls, <strong>and</strong> by sending pictures<br />
<strong>and</strong> video of Lucas at the hospice.<br />
“Claire <strong>and</strong> the team were just brilliant<br />
<strong>and</strong> worked unbelievably hard to keep us<br />
updated,” said Rachel. “We also knew we<br />
were able to call whenever we wanted<br />
to ask how Lucas was doing. Lucas<br />
was even able to take part in a Zoom<br />
call with his teacher <strong>and</strong> classmates.”<br />
Lucas continued to make a complete<br />
recovery over the next few weeks<br />
<strong>and</strong> was soon able to go home to his<br />
family in Plymouth.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 7
Strategic report<br />
Our activities<br />
Our unique care<br />
Our service is built upon our<br />
multidisciplinary Care Team, who<br />
have been specially selected to<br />
help enrich the lives of all the<br />
children we care for. We are truly<br />
committed to looking at how we<br />
can continue to meet the needs of<br />
our children <strong>and</strong> families, through<br />
the enhancement of our services,<br />
whilst ensuring they remain<br />
sustainable for the future.<br />
Keeping in touch<br />
Our Care Team are in<br />
frequent contact<br />
with families, by<br />
phone <strong>and</strong> home<br />
visits as well as visiting<br />
a child when they are in hospital.<br />
Working in partnership<br />
We are committed to<br />
working in partnership<br />
with other agencies<br />
who work with the<br />
families we serve,<br />
whether statutory or voluntary.<br />
What is important to children<br />
<strong>and</strong> families in such extreme<br />
circumstances is that we all work<br />
together <strong>and</strong> that our Care Teams<br />
fully support this approach.<br />
Respite break<br />
This gives our families<br />
a chance to spend<br />
time together, relax<br />
<strong>and</strong> have some fun<br />
as a family whilst<br />
creating special memories.<br />
Making the most of<br />
every moment<br />
Our hospice bases are<br />
something we are really<br />
proud of <strong>and</strong> have been<br />
specially designed to<br />
provide a safe space<br />
where families can relax whilst<br />
also receiving care. Soft play<br />
rooms give every child a safe<br />
place to laugh <strong>and</strong> play; sensory<br />
rooms for calming stimulation,<br />
music therapy, hydrotherapy<br />
pools to ease stiff muscles <strong>and</strong><br />
have some fun, sensory gardens<br />
for adventures outdoors as well<br />
as specially adapted garden<br />
equipment enabling everyone<br />
to have fun outside. Alongside<br />
these are areas where parents<br />
<strong>and</strong> families can relax <strong>and</strong> unwind<br />
in a homely environment.<br />
<br />
At a time when we felt completely alone <strong>and</strong> scared the<br />
hospice helped us through some of our darkest times.<br />
Page 8 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Strategic report<br />
Bereavement support<br />
We stay alongside<br />
families, offering<br />
support after their<br />
child’s death. All our<br />
Care Team members<br />
provide important bereavement<br />
care for families as well as<br />
offering bereavement events <strong>and</strong><br />
support groups. Families stay in<br />
touch with us through events such<br />
as hospice fetes <strong>and</strong> an annual<br />
remembering service for as long<br />
as they wish, often for many years.<br />
Sibling support<br />
Siblings also have<br />
a long <strong>and</strong> sometimes<br />
difficult journey<br />
alongside their sick<br />
brother or sister. We<br />
provide dedicated support to<br />
siblings who may feel isolated,<br />
scared or confused. We provide<br />
the opportunity for them to<br />
meet other siblings <strong>and</strong> seek<br />
support through play, sharing<br />
some memorable times <strong>and</strong><br />
having some fun too, through<br />
a range of special activities.<br />
Emergency care<br />
When families need us<br />
most, we do our best to<br />
be responsive. This is<br />
frequently to respond to<br />
medical / clinical needs<br />
where through our expert<br />
medical <strong>and</strong> nursing care we are<br />
able to help manage symptoms.<br />
We will always prioritise end of<br />
life <strong>and</strong> clinical needs but at times,<br />
we are also able to offer support<br />
when families are in crisis to help<br />
support resilience.<br />
End of life care<br />
When life’s journey ends,<br />
we are there to st<strong>and</strong><br />
alongside families,<br />
providing medical <strong>and</strong><br />
nursing expertise so that<br />
family members can feel safe <strong>and</strong><br />
less anxious. After a child has died,<br />
they can lie in our special Starborn<br />
room. Families can also stay with us<br />
during this time <strong>and</strong> our team are<br />
on h<strong>and</strong> to guide <strong>and</strong> support them.<br />
Many families draw comfort from<br />
this <strong>and</strong> it becomes an important<br />
step in the grieving process.<br />
Whole family care<br />
We believe that the whole<br />
family should have<br />
the opportunity to<br />
accompany their child<br />
to the hospice, so each<br />
member is supported in the midst<br />
of their impossible journey. We<br />
look after the whole family; mums,<br />
dads <strong>and</strong> siblings, as well as children<br />
with life-limiting conditions.<br />
Day Care<br />
Families can come in <strong>and</strong><br />
make the most of our<br />
facilities for the day<br />
either supported by the<br />
team or independently.<br />
We are<br />
never closed!<br />
24 hours a day,<br />
365 days a year for<br />
emergency care, whenever<br />
families need us.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 9
Strategic report<br />
Key facts <strong>and</strong> how we have supported our beneficiaries<br />
Who are we supporting?<br />
580<br />
children / young people<br />
were part of CHSW in 2019/20 an<br />
increase of 14 from the previous year.<br />
1,058<br />
parents / carers<br />
were part of CHSW in 2019/20, an<br />
increase of 20 from the previous year.<br />
982<br />
siblings<br />
were part of CHSW in<br />
2019/20, a increase of 41<br />
from the previous year.<br />
What type of activity have we seen?<br />
12,092<br />
total bed nights<br />
in 2019/20, a<br />
decrease of 560*.<br />
7,951<br />
family members<br />
nights stayed in the<br />
hospices in 2019/20, a<br />
decrease of 577 from<br />
the previous year*.<br />
3,948<br />
children<br />
bed nights in<br />
2019/20, a decrease<br />
of 176 from the<br />
previous year*.<br />
111<br />
day visits<br />
in 2019/20, a<br />
small decrease<br />
of 7 from the<br />
previous year*.<br />
82<br />
Starborn**<br />
nights in 2019/20,<br />
a decrease of<br />
27 from the<br />
previous year*.<br />
4,813<br />
parents / carers<br />
nights stayed in 2019/20,<br />
a decrease of 386 from<br />
the previous year*.<br />
3,138<br />
sibling<br />
night stays in 2019/20,<br />
a decrease of 191<br />
nights from 2018/19*.<br />
3,584<br />
respite<br />
bed nights in 2019/20,<br />
an decrease of 60 from<br />
the previous year*.<br />
364<br />
emergency<br />
bed nights in 2019/20,<br />
a decrease of 116 from<br />
the previous year*.<br />
Care Summary <strong>and</strong> key achievements 2019/20<br />
Alongside the provision of care for children young people <strong>and</strong> their families, the key areas of operational development <strong>and</strong><br />
continuous improvement have included the following:<br />
reducing the number of hospice<br />
cancellations;<br />
restructure of the Quality<br />
Governance Framework;<br />
improve sustainability <strong>and</strong> efficiency<br />
in the Care Team structure;<br />
development <strong>and</strong> implementation<br />
of care competencies;<br />
transition to adult services;<br />
a new clinical information system;<br />
engagement with families.<br />
* In March, in response to the global p<strong>and</strong>emic, CHSW made the difficult decision to cease offering respite care in<br />
order to ensure we could protect our children <strong>and</strong> families. CHSW remained open 24/7 for emergency care, including<br />
end of life care, hospital avoidance admissions <strong>and</strong> step down from acute hospital care services. This change of service<br />
provision is reflected in our in-house stays at the end of March.<br />
** ‘Starborn’ is the name given to the cold room in CHSW hospices that the children stay in after death.<br />
Page 10 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Strategic report<br />
COVID-19 p<strong>and</strong>emic<br />
The CHSW Care Team pride themselves<br />
on being adaptable <strong>and</strong> responsive<br />
to children <strong>and</strong> family needs. This<br />
approach was in abundance during the<br />
global coronavirus p<strong>and</strong>emic where an<br />
early response was demonstrated <strong>and</strong><br />
measures to keep children, families, <strong>and</strong><br />
staff safe were implemented. As the<br />
p<strong>and</strong>emic developed, we recognised that<br />
as an organisation, we would need to be<br />
dynamic <strong>and</strong> work in new <strong>and</strong> different<br />
ways to support both our families <strong>and</strong> the<br />
wider healthcare effort in the respective<br />
communities. This included caring for<br />
our children not only in the hospice<br />
(albeit it in a very different way to before)<br />
but also in their own homes <strong>and</strong> virtually.<br />
We were pro-active in linking with<br />
partner providers, community trusts,<br />
acute trusts <strong>and</strong> adult hospices to<br />
offer additional support <strong>and</strong> liaised<br />
with the respective Clinical<br />
Commissioning Groups (CCGs)<br />
developing different ways of working.<br />
In the hospice, whilst we have not been<br />
able to offer routine respite, we have<br />
continued to provide a 24/7 service for:<br />
children at the end of their life;<br />
children requiring symptom<br />
management;<br />
children requiring step down care<br />
from acute services;<br />
children who would have ordinarily<br />
needed a hospital stay;<br />
children <strong>and</strong> families needing a short<br />
term “resilience stay” due to extreme<br />
social circumstances, for example<br />
if the family is unwell or a problem in<br />
the home such as a broken lift.<br />
We have supported children, young<br />
people <strong>and</strong> families in their own<br />
homes in several ways:<br />
nurses <strong>and</strong> carers have provided<br />
full shifts of care, not a role<br />
previously undertaken by<br />
CHSW staff, in conjunction with<br />
our partner agencies <strong>and</strong> provided<br />
home visits by our medical teams<br />
to assess care need;<br />
we have provided doorstep support<br />
visits, which also included the<br />
delivery of cakes (baked by our own<br />
cooks), food hampers (kindly donated<br />
from local businesses) <strong>and</strong> games<br />
(provided by our Sibling Teams);<br />
we contacted local supermarkets to<br />
ensure the families were included<br />
on the ‘vulnerable’ list <strong>and</strong> supplied<br />
key items such as wipes <strong>and</strong> nappies<br />
from CHSW stores that families<br />
were struggling to source.<br />
Throughout this period, we have<br />
embraced technology to support<br />
the more dispersed workforce,<br />
maintained close <strong>and</strong> regular contact<br />
with our children, young people,<br />
<strong>and</strong> their families <strong>and</strong> ensured<br />
collaborative working with partner<br />
providers. This virtual support included:<br />
proactive contact with every family<br />
to see what help <strong>and</strong> support<br />
they needed <strong>and</strong> then we responded<br />
to that individual need;<br />
telephone support service for<br />
all the children young people <strong>and</strong><br />
their families including those<br />
who are bereaved;<br />
remote consultations by the<br />
medical teams;<br />
the use of Zoom to provide supportive<br />
but fun activities for siblings on<br />
an individual basis <strong>and</strong> in groups.<br />
Activities have included quizzes,<br />
bingo, craft sessions (Crafty Zoom);<br />
the use of Zoom to provide music<br />
therapy sessions;<br />
bereavement support group for<br />
parents <strong>and</strong> carers via Zoom;<br />
virtual remembering days for<br />
bereaved families;<br />
regular newsletters including<br />
activities <strong>and</strong> details of local<br />
resources <strong>and</strong> groups;<br />
advice <strong>and</strong> support regarding<br />
emotional <strong>and</strong> psychological wellbeing<br />
for all members of the family.<br />
A recent Family Survey has confirmed<br />
that the hybrid model of hospice, home<br />
<strong>and</strong> virtual care will continue to ensure<br />
our families have choice <strong>and</strong> we are<br />
responsive to individual needs.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 11
Strategic report<br />
Income generation<br />
For nearly thirty years, CHSW has<br />
been there for families. On behalf of<br />
every family, we want to say thank you<br />
to everyone involved for making that<br />
support a reality. Together we are making<br />
the most of short <strong>and</strong> precious lives.<br />
Without the tremendous support<br />
of people right across the South<br />
West (<strong>and</strong> beyond) we simply could<br />
not be there for children <strong>and</strong> families<br />
when they need it most.<br />
Whether participating<br />
in events, shopping<br />
<strong>and</strong> donating in one<br />
of our charity shops,<br />
playing the Raise a<br />
Smile Lottery or giving<br />
a financial gift - every act<br />
of kindness continues to<br />
help children <strong>and</strong> families.<br />
Through our fundraising <strong>and</strong><br />
trading activities this year,<br />
together we have raised<br />
£12.7m<br />
Take a look at some of the highlights of our fundraising activities from the year:<br />
£3.5m<br />
received from those supporters who<br />
chose to remember CHSW with a gift<br />
in their will (up from £3.1m last year).<br />
£490k<br />
raised by participants of our<br />
fundraising events this year including<br />
through Rainbow Runs, Firewalks,<br />
Santas on the Run <strong>and</strong> much more.<br />
£786k<br />
contributed to CHSW this year from over<br />
14,000 players in our weekly lottery <strong>and</strong><br />
annual raffle have helped to raise a smile.<br />
£2.8m<br />
from individual giving which has<br />
grown as people continued to<br />
generously support our work,<br />
increasing from £2.5m last year.<br />
£3.8m<br />
raised from supporters donating or<br />
shopping in one of our 36 charity<br />
shops across the South West.<br />
5<br />
new shops opened throughout<br />
2019/20 in Thornbury,<br />
Bradley Stoke, Shepton Mallet,<br />
Ashburton <strong>and</strong> Okehampton.<br />
Page 12 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Strategic report<br />
We are eternally<br />
grateful to the<br />
whole team at<br />
Children’s Hospice<br />
South West <strong>and</strong><br />
everyone who<br />
helps to raise<br />
money for families<br />
like ours.<br />
£479k<br />
received from charitable trusts <strong>and</strong><br />
foundations to fund specific projects,<br />
ongoing care <strong>and</strong> support for families.<br />
£883k<br />
from businesses across the region<br />
who have donated funds, taken part in<br />
employee fundraising or partnered with<br />
CHSW in so many different ways.<br />
£258k<br />
raised through the activities of<br />
our fabulous Friends Groups.<br />
A special thank you to our volunteers<br />
They are the friendly faces in our shops, they<br />
work tirelessly to support <strong>and</strong> stage local<br />
fundraising activities, they host tours of our<br />
hospice sites, they iron, clean, maintain our<br />
beautiful gardens <strong>and</strong> so much more. Without<br />
them, we don’t know what we’d do.<br />
Time donated by the charity’s many volunteers<br />
<strong>and</strong> Friends Group members is not recognised<br />
in the accounts, as it cannot be reliably valued.<br />
More than 900<br />
volunteers have contributed<br />
over 10,000 volunteer hours<br />
each month in the last year.<br />
2,018<br />
new Facebook followers taking the<br />
total to 17,855. Average monthly reach<br />
increased to 184k (2018-19: 122k)<br />
<strong>and</strong> average monthly engagement<br />
increased to 14k (2018-19: 8k)<br />
9,726<br />
followers on Twitter, an increase<br />
of 402 (2018-19: 9,306). Average<br />
monthly reach was 153k <strong>and</strong> average<br />
monthly engagement was 2,227<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 13
Strategic report<br />
<strong>Financial</strong> review<br />
Our financial performance<br />
The consolidated financial statement<br />
comprises the result of the charity<br />
together with those of C H S W<br />
Promotions Limited, a wholly owned<br />
subsidiary, which donates it profits<br />
to the charity.<br />
The consolidated statement of financial<br />
activities is set out on page 20.<br />
Donations <strong>and</strong> legacies amounted<br />
to £8,035,093 (2019: £7,336,675),<br />
income raised from charitable activities<br />
(statutory income sources) amounted to<br />
£1,886,934 (2019: £1,685,991), trading<br />
activities (including retail <strong>and</strong> lottery)<br />
generated income of £4,660,895<br />
(2019: £4,454,738), investment income<br />
was £410,510 (2019: £361,427) <strong>and</strong><br />
other income £779,629 (2019: £1,396).<br />
Total income for the year was<br />
£15,773,061 (2019: £13,840,227).<br />
Total expenditure for the year<br />
amounted to £15,083,201 (2019:<br />
£14,461,225). This resulted in an<br />
operational surplus of £689,860 (2019:<br />
deficit £620,998). Net gains/(losses)<br />
on investments were (£1,038,118)<br />
(2019: £247,493) <strong>and</strong> therefore<br />
net (expenditure) for the year was<br />
(£348,258) (2019: (£373,505)).<br />
Consolidated in the above figures<br />
C H S W Promotions limited, a trading<br />
subsidiary, has a turnover which<br />
amounted to £215,125 (2019: £187,713)<br />
<strong>and</strong> a profit after taxation of £9,934<br />
(2019: £62). The company will donate<br />
this amount to the charity.<br />
In March 2020, the financial effect<br />
of the COVID-19 p<strong>and</strong>emic was first<br />
felt by the charity with the closure of<br />
all 36 CHSW shops together with the<br />
cancellation of a number of voluntary<br />
fundraising events organised by the<br />
charity <strong>and</strong> supporters.<br />
To mitigate the initial fall in income<br />
due to the p<strong>and</strong>emic, in the financial<br />
year the charity took advantage of the<br />
Governments support in relation to the<br />
Retail, Hospitality <strong>and</strong> Leisure grant<br />
Where we received<br />
our income<br />
Community <strong>and</strong> corporate<br />
£4,011,272 - 25%<br />
Trusts<br />
£478,693 - 3%<br />
Legacies<br />
£3,545,128 - 22%<br />
Trading<br />
£4,660,895 - 30%<br />
Statutory<br />
£1,886,934 - 12%<br />
Investment income<br />
£410,510 - 3%<br />
Other<br />
£779,629 - 5%<br />
Total - £15,773,061<br />
Investment<br />
income<br />
Statutory<br />
Trading<br />
Other<br />
Community<br />
<strong>and</strong> corporate<br />
Trusts<br />
Legacies<br />
Page 14 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Strategic report<br />
of £750,000 <strong>and</strong> Furlough schemes of<br />
£27,000, both amounts are included<br />
in other income within the accounts.<br />
During February <strong>and</strong> March 2020,<br />
investment markets across the globe<br />
were significantly negatively affected<br />
by the emerging p<strong>and</strong>emic <strong>and</strong> as a<br />
result, CHSW’s loss on the investments<br />
held by the charity for the financial<br />
year amounted to £1,038,118.<br />
The effect of the p<strong>and</strong>emic on voluntary<br />
<strong>and</strong> trading income has continued into<br />
the 2020/21 financial year. Whilst our<br />
community <strong>and</strong> corporate incomes<br />
are significantly behind previous years<br />
levels, we are encouraged <strong>and</strong> grateful<br />
that our trust, legacy, <strong>and</strong> individual<br />
giving voluntary income remain strong<br />
during the p<strong>and</strong>emic period.<br />
We are also pleased to note that all our<br />
shops have now reopened.<br />
During the 2020/21 financial year, as<br />
global markets have improved from their<br />
low level at the end of March 2020, the<br />
charity has seen a significant gain in the<br />
value of investments held which are<br />
currently now only slightly behind their<br />
value prior to the p<strong>and</strong>emic.<br />
<strong>Financial</strong> modelling of our income<br />
for the 2020/21 financial year has<br />
forecasted that our overall income is<br />
expected to be £1.8m down on budgeted<br />
levels. This reflects the expected fall<br />
in voluntary <strong>and</strong> trading income offset<br />
by further Government financial help<br />
including specific hospice sector<br />
support announced by the Chancellor<br />
in April 2020. The Board have instigated<br />
a strategic review of the organisation<br />
to adapt <strong>and</strong> identify new opportunities<br />
for the charity going forward in the<br />
new p<strong>and</strong>emic environment. This<br />
work will ensure that service levels can<br />
be maintained <strong>and</strong> enhanced where<br />
possible whilst identifying efficiency<br />
savings across the organisation to help<br />
reduce the possibility of operating<br />
deficits in the coming years.<br />
Raising funds<br />
Little Bridge House<br />
Where we spent<br />
our income<br />
Little Bridge House<br />
£2,962,208 - 20%<br />
Trading activities<br />
Little Harbour<br />
Charlton Farm<br />
Charlton Farm<br />
£3,668,073 - 24%<br />
Little Harbour<br />
£2,676,099 -18%<br />
Trading activities<br />
£3,646,703 - 24%<br />
Raising funds<br />
£2,130,118 - 14%<br />
Total - £15,083,201<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 15
Strategic report<br />
Our financial reserves<br />
We recognise our commitment <strong>and</strong> moral<br />
obligation to the children <strong>and</strong> families<br />
who currently use our services will<br />
extend many years into the future. It is<br />
imperative, therefore, for us to maintain<br />
unrestricted general funds at a level that<br />
will ensure the continuity of the unique<br />
service provided by the charity whilst<br />
recognising that the charity is facing a<br />
period of significant economic uncertainty<br />
as a result of the ongoing p<strong>and</strong>emic.<br />
In establishing the CHSW reserves<br />
policy, we have taken direction from<br />
the Charity Commission’s guidance<br />
CC19 by using an integrated approach<br />
for an organisation with complex<br />
activities <strong>and</strong> structures. This involves<br />
projecting cash flows over the next<br />
five years <strong>and</strong> identifying key risks<br />
associated in this period, with both<br />
income <strong>and</strong> expenditure, whilst<br />
also considering already committed<br />
expenditure. From this work, it has been<br />
found necessary for CHSW to maintain<br />
a target range of reserves of between<br />
£10.9m <strong>and</strong> £12.7m. This represents<br />
between 8.6 <strong>and</strong> 10.1 months of<br />
annual budgeted operating costs.<br />
The charities unrestricted general<br />
funds were at a level of £15,891,995<br />
We feel incredibly lucky to be<br />
under the protective wing of such<br />
an amazing organisation.<br />
as of 31 March 2020 (£15,919,709 as<br />
of 31 March 2019).<br />
We note that the group’s unrestricted<br />
general funds are above their target<br />
range of reserves. It is our intention<br />
that, in the short to medium term, the<br />
charity utilises these surplus funds to<br />
help deal with the impact on the charity<br />
of the COVID-19 p<strong>and</strong>emic <strong>and</strong> the<br />
possibility <strong>and</strong> disruption from further<br />
outbreaks. This will include investment<br />
in maintaining <strong>and</strong> developing our<br />
care services so that they can operate<br />
in a p<strong>and</strong>emic restricted environment.<br />
The surplus also helps to ensure the<br />
longer term financial stability of<br />
the charity recognising the significant<br />
fall in voluntary <strong>and</strong> trading income<br />
that is expected in the next two<br />
years because of the social limitations<br />
imposed by the p<strong>and</strong>emic.<br />
Designated capital funds are £21,176,960<br />
(2019: £21,397,904) <strong>and</strong> represent the<br />
net book value of the unrestricted<br />
tangible <strong>and</strong> intangible fixed assets<br />
of the group.<br />
Restricted funds are those to be used<br />
in accordance with specific instructions<br />
imposed by donors or which have been<br />
raised by the charity for specific purposes.<br />
At 31 March 2020, the balance of these<br />
funds was £706,344 (2019: £708,854).<br />
Details of these funds can be seen in note<br />
18 of the financial statements.<br />
An endowment fund is a fund retained<br />
for the benefit of the charity as a capital<br />
fund. The endowment fund included<br />
in these accounts is an expendable<br />
endowment, the income from which is<br />
restricted to funding the post of Head<br />
of Care at Charlton Farm at 31 March<br />
2020. The balance of these funds was<br />
£1,400,656 (2019: £1,476,221).<br />
Despite the worldwide economic<br />
challenges currently faced by all<br />
organisations, we consider the charity<br />
to be a going concern..<br />
Our investment approach<br />
The charity’s investment policy requires<br />
the charity to invest funds in such a<br />
manner that the risk profile reflects<br />
planned expenditure <strong>and</strong> future plans.<br />
In 2008, we appointed Cazenove<br />
Capital Management Limited as our<br />
agent to manage a diversified portfolio<br />
of suitable investments. As the size<br />
of our investments grew, in March<br />
2015, Sarsains <strong>and</strong> Partners were then<br />
additionally appointed.<br />
In 2019, we secured the services of<br />
an external independent investment<br />
advisor to undertake an investment risk<br />
profile review <strong>and</strong> to provide ongoing<br />
expert assessment on the performance<br />
of the appointed investment managers.<br />
At the beginning of the 2020/21 financial<br />
year, as part of good governance, a<br />
formal retendering process in relation<br />
to investment manager services was<br />
undertaken which included a review<br />
of investment performance <strong>and</strong> charges.<br />
As a result of this work, Aberdeen<br />
St<strong>and</strong>ard Capital Limited were appointed,<br />
alongside Sarasins <strong>and</strong> Partners, as CHSW<br />
investment mangers going forward.<br />
Under our investment policy, we<br />
instruct the appointed investment<br />
managers to avoid, if at all possible,<br />
investments in funds where a<br />
constituent of that fund has turnover<br />
directly related to restricted categories<br />
including tobacco, alcohol manufacture,<br />
armaments, pornography <strong>and</strong> gambling.<br />
A minimum performance requirement<br />
for all invested funds is Consumer<br />
Price Index (CPI) +3% <strong>and</strong> this target<br />
is reviewed annually for suitability.<br />
During 2019/20, these investment<br />
performance objectives were met.<br />
Page 16 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Strategic report<br />
How we manage risks <strong>and</strong> uncertainties<br />
We undertake a continual assessment<br />
of the principal risks facing the<br />
group <strong>and</strong> are satisfied that adequate<br />
controls <strong>and</strong> procedures are in place<br />
to mitigate these risks. The Risk,<br />
Audit <strong>and</strong> Governance Assurance<br />
Committee (RAG) is responsible for<br />
overseeing the approach to risk across<br />
the whole of the charity’s activities.<br />
All risks identified are recorded on the<br />
CHSW Risk Register. The risk is then<br />
scored based on impact <strong>and</strong> likelihood<br />
in line with the Charity Commission<br />
guidance. Mitigation <strong>and</strong> controls are<br />
applied with the aim of reducing<br />
the risk (<strong>and</strong> the score) to an acceptable<br />
level. The scores are prioritised on a<br />
Red, Amber, Green rating <strong>and</strong> reported<br />
to the Board through the CHSW<br />
Risk Management Framework. The<br />
Senior Management Team review the<br />
Risk Register monthly <strong>and</strong> the Board<br />
Assurance Committees review the<br />
strategic risks relevant to them at their<br />
scheduled meetings (at least three times<br />
per year). The full Board carry out a full<br />
review of strategic risks annually.<br />
The key red risks identified are:<br />
P<strong>and</strong>emic: Risk to Operations.<br />
COVID-19 has had a far greater impact<br />
than anyone could have envisaged,<br />
impacting every aspect of what we<br />
do. CHSW immediately responded by<br />
creating a COVID-19 Response Team,<br />
made up of key personnel from across<br />
the organisation, meeting weekly to<br />
respond to the immediate operational<br />
risks. The full Board met on 12 March<br />
2020 <strong>and</strong> shortly following, the terms<br />
of reference for a Crisis Assurance<br />
Committee of Trustees was agreed.<br />
This group now meets monthly <strong>and</strong> is<br />
empowered to make swift decisions<br />
whilst retaining appropriate governance.<br />
Cost of existing <strong>and</strong> planned services<br />
exceeds income (annual).<br />
<strong>Financial</strong> modelling identified the need<br />
to generate additional income in excess<br />
of £2m per year over the next five years<br />
to ensure income can cover operational<br />
expenditure reflecting year on year<br />
inflationary costs <strong>and</strong> the additional cost<br />
associated with service development. This<br />
has been overshadowed by the impact of<br />
the p<strong>and</strong>emic on our retail <strong>and</strong> voluntary<br />
income <strong>and</strong> response plans are now being<br />
developed <strong>and</strong> implemented to reflect<br />
the CHSW Strategic Review. This is<br />
supported by the Finance, Investment <strong>and</strong><br />
Trading Assurance Committee (FIT).<br />
The six main areas of risk identified by<br />
the Board in January 2020 were:<br />
failure to deliver charitable<br />
objectives;<br />
failure to manage safeguarding risks;<br />
damage to reputation;<br />
ineffective governance <strong>and</strong> leadership;<br />
failure to manage compliance;<br />
failure to manage financial risk.<br />
After a call to the Children Hospice South West helpline, aka the<br />
Care Team, we were able to get great support during lockdown<br />
from members of the team who know our foster son well.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 17
Strategic report<br />
What we achieved against our key objectives in 2019-20<br />
Objective<br />
Achievement<br />
Care<br />
To care for more sick children year on year Achieved: 580 (566 in 2018/19)<br />
To achieve an occupancy of available beds of 75% Achieved: 81% (80% in 2018/19)<br />
Exemplary st<strong>and</strong>ards of care, with the<br />
Care Quality Commission (CQC) finding<br />
no actions for improvement<br />
The CQC did not inspect any of the hospices in<br />
2019/20 but our Quality Account, which is<br />
submitted to NHS Engl<strong>and</strong>, demonstrates that the<br />
quality of care provided continues to be excellent<br />
Fundraising<br />
Guaranteed/regular income (for example statutory,<br />
net retail <strong>and</strong> lottery, committed giving <strong>and</strong><br />
investment income)covering 30% of total expenditure<br />
excluding expenditure on trading activities<br />
Cover costs plus achieve a surplus<br />
before investment gains <strong>and</strong> losses<br />
Reserves<br />
To hold a target range of reserves by taking a<br />
prudent approach to the identification of reasonable<br />
uncertainties that CHSW may face in the future<br />
Achieved: 31%<br />
Total expenditure excluding expenditure<br />
on trading activities: £11.4m<br />
Guaranteed/regular income: £3.5m<br />
Achieved: Operational surplus of £689,860<br />
before investment gains <strong>and</strong> losses, but including<br />
COVID-19 income of £777k.<br />
Achieved: Actual level of unrestricted<br />
general funds exceeds target range of<br />
£10,906,388 to £12,711,546<br />
Page 18 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Strategic report<br />
ur plans for the future<br />
Reflecting on the challenges that the COVID-19 p<strong>and</strong>emic has presented<br />
to CHSW, we have reviewed our objectives for the next 12 months:<br />
1 To develop <strong>and</strong> update the CHSW<br />
care vision with a short/medium term<br />
goal focussing on our new service<br />
offer of: hospice, home <strong>and</strong> virtual.<br />
2 To develop <strong>and</strong> implement our<br />
Workplace Health, Safety <strong>and</strong><br />
Wellbeing Strategy in response to<br />
the immediate COVID-19 p<strong>and</strong>emic<br />
with forward vision to adapt to the<br />
changing workplace environment.<br />
3 To establish a new Fundraising<br />
Strategy with a focus on<br />
Individual Giving <strong>and</strong> a revised<br />
approach to events.<br />
4 To develop new retail <strong>and</strong> lottery<br />
trading strategies in response to<br />
high street challenges <strong>and</strong> the need<br />
to grow lottery memberships with<br />
limited face to face contact.<br />
5 To develop a new marketing strategy<br />
to increase donor acquisition <strong>and</strong><br />
retention, reach new audiences <strong>and</strong><br />
st<strong>and</strong> out in a new <strong>and</strong> potentially<br />
crowded marketplace.<br />
6 To develop a Digital Transformation<br />
strategy to continue to<br />
enhance our ways of working<br />
across the organisation in an everchanging<br />
digital world.<br />
Included on pages 44-48 are the charities structure, governance <strong>and</strong> management, reference <strong>and</strong> administrative<br />
detail <strong>and</strong> fundraising disclosures which also form part of this report.<br />
Statement of Trustees’ responsibilities<br />
The Trustees (who are also Directors<br />
of CHSW for the purposes of company<br />
law) are responsible for preparing the<br />
Trustees’ <strong>Annual</strong> <strong>Report</strong> (including<br />
the Strategic <strong>Report</strong>) <strong>and</strong> the financial<br />
statements in accordance with applicable<br />
law <strong>and</strong> United Kingdom Generally<br />
Accepted Accounting Practice (United<br />
Kingdom Accounting St<strong>and</strong>ards).<br />
Company law requires the Trustees to<br />
prepare financial statements for each<br />
financial year. Under company law the<br />
Trustees must not approve the financial<br />
statements unless they are satisfied<br />
that they give a true <strong>and</strong> fair view of<br />
the state of affairs of the charitable<br />
company <strong>and</strong> the group <strong>and</strong> of the<br />
incoming resources <strong>and</strong> application of<br />
resources, including the income <strong>and</strong><br />
expenditure, of the charitable group for<br />
that period. In preparing these financial<br />
statements, the Trustees are required to:<br />
select suitable accounting policies<br />
<strong>and</strong> then apply them consistently;<br />
observe the methods <strong>and</strong> principles<br />
in the Charities Statement of<br />
Recommended Practice (SORP);<br />
make judgements <strong>and</strong> estimates that<br />
are reasonable <strong>and</strong> prudent;<br />
state whether applicable UK<br />
accounting st<strong>and</strong>ards have<br />
been followed, subject to any material<br />
departures disclosed <strong>and</strong> explained<br />
in the financial statements; <strong>and</strong><br />
prepare the financial statements<br />
on the going concern basis unless<br />
it is inappropriate to presume<br />
that the charitable company will<br />
continue in business.<br />
The Trustees are responsible for<br />
keeping adequate accounting records<br />
that are sufficient to show <strong>and</strong> explain<br />
the charitable company’s transactions,<br />
disclose with reasonable accuracy at<br />
any time the financial position of the<br />
charitable company <strong>and</strong> enable them<br />
to ensure that the financial statements<br />
comply with the Companies Act 2006<br />
<strong>and</strong> the provisions of the charity’s<br />
constitution. They are also responsible<br />
for safeguarding the assets of the charity<br />
<strong>and</strong> the group <strong>and</strong> hence for taking<br />
reasonable steps for the prevention <strong>and</strong><br />
detection of fraud <strong>and</strong> other irregularities.<br />
Disclosure of Information to Auditors<br />
Insofar as each of the Trustees of the<br />
charity at the date of approval of this<br />
report is aware, there is no relevant<br />
audit information (information needed<br />
by the charity’s auditor in connection<br />
with preparing the audit report) of<br />
which the charity’s auditor is unaware.<br />
Each Trustee has taken all of the steps<br />
that he/she should have taken as a<br />
Trustee in order to make himself/herself<br />
aware of any relevant audit information<br />
<strong>and</strong> to establish that the charity’s<br />
auditor is aware of that information.<br />
Approval<br />
This report, incorporating the strategic<br />
report, was approved by the Board<br />
of Trustees on 24 September 2020<br />
<strong>and</strong> signed on its behalf:<br />
Patricia Morris<br />
Chair of Trustees<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 19
<strong>Financial</strong> statements<br />
Consolidated statement of financial activities<br />
(including income <strong>and</strong> expenditure account)<br />
for the year ended 31 March 2020<br />
Notes<br />
Unrestricted<br />
funds (£)<br />
Restricted<br />
funds (£)<br />
Endowment<br />
funds (£)<br />
Total 2020<br />
funds (£)<br />
Total 2019<br />
funds (£)<br />
Income from: (note 29)<br />
Donations <strong>and</strong> legacies 1 5,543,280 2,491,813 — 8,035,093 7,336,675<br />
Charitable activities:<br />
Statutory funding<br />
4 999,303 887,631 — 1,886,934 1,685,991<br />
Trading activities 3 4,660,895 — — 4,660,895 4,454,738<br />
Investments 2 368,281 42,229 — 410,510 361,427<br />
Other 5 779,629 — — 779,629 1,396<br />
Total income 12,351,388 3,421,673 — 15,773,061 13,840,227<br />
Expenditure on:<br />
Trading activities 3 3,646,703 — — 3,646,703 3,331,279<br />
Total income net of<br />
trading expenditure<br />
Expenditure on:<br />
8,704,685 3,421,673 — 12,126,358 10,508,948<br />
Raising funds 2,085,057 — — 2,085,057 2,067,657<br />
Investment management fees 45,061 — — 45,061 36,310<br />
Net income available for<br />
charitable activities<br />
Charitable activities:<br />
6,574,567 3,421,673 — 9,996,240 8,404,981<br />
Care of children <strong>and</strong> families 6 6,168,233 3,138,147 — 9,306,380 9,025,979<br />
Total expenditure 6 11,945,054 3,138,147 — 15,083,201 14,461,225<br />
Net income / (expenditure) before<br />
(losses) /gains on investments<br />
10 406,334 283,526 — 689,860 (620,998)<br />
Net (losses) / gains on investments 13(b) (883,662) — (154,456) (1,038,118) 247,493<br />
Net (expenditure)/income (477,328) 283,526 (154,456) (348,258) (373,505)<br />
Transfer between funds 17, 18, 19 207,145 (286,036) 78,891 — —<br />
Net movement in funds (270,183) (2,510) (75,565) (348,258) (373,505)<br />
Reconciliation of funds:<br />
Total funds brought forward 17, 18, 19 37,339,218 708,854 1,476,221 39,524,293 39,897,798<br />
Total funds carried forward 17, 18, 19 37,069,035 706,344 1,400,656 39,176,035 39,524,293<br />
The accounting policies starting on page 38 <strong>and</strong> the notes to the accounts starting on page 23 form part of these financial statements.<br />
Page 20 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Consolidated <strong>and</strong> charity balance sheet<br />
(Company number 02620879)<br />
as at 31 March 2020<br />
Fixed assets<br />
Notes<br />
Group<br />
2020 (£)<br />
Group<br />
2019 (£)<br />
Charity<br />
2020 (£)<br />
Charity<br />
2019 (£)<br />
Tangible assets 11 21,288,845 21,450,134 21,288,845 21,450,134<br />
Intangible assets 12 268,115 327,770 268,115 327,770<br />
Investments 13(a) 11,376,342 15,176,690 11,376,442 15,176,790<br />
32,933,302 36,954,594 32,933,402 36,954,694<br />
Current assets<br />
Stock 14 31,825 19,730 — —<br />
Debtors 15 3,481,309 1,168,267 3,513,403 1,198,991<br />
Cash at bank <strong>and</strong> in h<strong>and</strong> 3,969,285 2,457,812 3,953,612 2,440,574<br />
7,482,419 3,645,809 7,467,015 3,639,565<br />
Creditors falling due within<br />
one year<br />
16 (1,239,686) (1,076,110) (1,234,516) (1,070,228)<br />
Net current assets 6,242,733 2,569,699 6,232,499 2,569,337<br />
Total net assets 39,176,035 39,524,293 39,165,901 39,524,031<br />
Funds of the group <strong>and</strong> charity<br />
Endowment fund 17 1,400,656 1,476,221 1,400,656 1,476,221<br />
Restricted funds 18 706,344 708,854 706,344 708,854<br />
Unrestricted designated funds 19 21,177,040 21,419,509 21,177,040 21,419,509<br />
Unrestricted general fund 19 15,891,995 15,919,709 15,881,861 15,919,447<br />
Total group <strong>and</strong><br />
charity funds<br />
20 39,176,035 39,524,293 39,165,901 39,524,031<br />
Of the net movement in funds for the year of £(348,258) (2018-19: £(373,505)), an amount of £(358,130)<br />
(2018-19: £(371,548)) has been dealt with in the Statement of <strong>Financial</strong> Activities of the parent company.<br />
The financial statements were approved <strong>and</strong> authorised for issue by the Board of Trustees on 24 September<br />
2020 <strong>and</strong> signed on its behalf:<br />
Patricia Morris<br />
Chair of Trustees<br />
The accounting policies starting on page 38 <strong>and</strong> the notes to the accounts starting on page 23 form<br />
part of these financial statements.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 21
<strong>Financial</strong> statements<br />
Consolidated cash flow statement<br />
for the year ended 31 March 2020<br />
Notes<br />
Total<br />
2020 (£)<br />
Total<br />
2019 (£)<br />
Cash (used on) / provided by operating activities 28(a) (750,495) 239,763<br />
Cash flows from investing activities<br />
Deposit interest received 13,185 11,173<br />
Investment income received 145,344 111,770<br />
Rental income received 3,566 9,419<br />
Cash flows from investing activities 162,095 132,362<br />
Capital expenditure <strong>and</strong> financial investment<br />
Purchases of tangible <strong>and</strong> intangible fixed assets:<br />
Little Bridge House (10,164) (3,475)<br />
Charlton Farm (39,851) (1,194)<br />
Other assets (860,757) (290,340)<br />
Purchases of tangible <strong>and</strong> intangible fixed assets (910,772) (295,009)<br />
Proceeds from sales of tangible fixed assets — 146<br />
Fixed asset investments:<br />
Payments (44,942) —<br />
Receipts — 36,872<br />
Transfer from cash held on deposit 3,055,587 —<br />
Fixed asset investments: 3,010,645 36,872<br />
Capital expenditure <strong>and</strong> financial investment 2,099,873 (257,991)<br />
Net cash provided by /(used in) investing activities 2,261,968 (125,629)<br />
Change in cash <strong>and</strong> cash equivalents in the reporting period 28(b) 1,511,473 114,134<br />
Cash <strong>and</strong> cash equivalent at the beginning of the year 2,457,812 2,343,678<br />
Total cash <strong>and</strong> cash equivalent at the end of the year 3,969,285 2,457,812<br />
Page 22 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
<strong>Financial</strong> statements<br />
Notes to the financial statements<br />
for the year ended 31 March 2020<br />
1 Donations <strong>and</strong> legacies<br />
CHSW receives donations from a number of diverse sources as shown below:<br />
Total 2020 (£) Total 2019 (£)<br />
Individuals 2,799,369 2,523,031<br />
Friends Group fundraising 258,244 497,848<br />
Legacies 3,545,128 3,068,376<br />
Grants <strong>and</strong> donations from charitable trusts 478,693 341,370<br />
Other voluntary income 953,659 906,050<br />
8,035,093 7,336,675<br />
2 Investment income<br />
Total 2020 (£) Total 2019 (£)<br />
Income from listed investments:<br />
UK 259,601 213,621<br />
Overseas 40,707 36,550<br />
Multi-asset funds 85,380 84,097<br />
Income from cash deposits 21,256 17,740<br />
Rental income 3,566 9,419<br />
410,510 361,427<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 23
<strong>Financial</strong> statements<br />
3 Income <strong>and</strong> expenditure from trading activities<br />
Total trading income comprises: Total 2020 (£) Total 2019 (£)<br />
C H S W Promotions Limited 215,125 187,713<br />
Lottery <strong>and</strong> raffles 785,629 801,881<br />
Donations relating to the sale of goods where the shops acted as agent 991,602 883,434<br />
Gift Aid received on donations where the shops acted as agent 245,814 220,858<br />
Shops turnover 2,422,725 2,360,852<br />
Total 4,660,895 4,454,738<br />
Total trading expenditure comprises: Total 2020 (£) Total 2019 (£)<br />
C H S W Promotions Limited 205,190 187,651<br />
Lottery <strong>and</strong> raffles 212,594 173,968<br />
Shops (all associated costs<br />
including depreciation)<br />
3,228,919 2,969,660<br />
Total 3,646,703 3,331,279<br />
The principal activity of the charity’s wholly owned subsidiary, C H S W Promotions Limited (company<br />
number 02645823) is the sale of bought-in goods, including Christmas cards, through the charity<br />
shops of the parent charity <strong>and</strong> through its network of Friends Groups <strong>and</strong> by mail order.<br />
The income <strong>and</strong> expenditure of C H S W Promotions Limited are disclosed as ‘trading’ income <strong>and</strong><br />
expenditure in the consolidated statement of financial activities on page 20.<br />
C H S W Promotions Limited Total 2020 (£) Total 2019 (£)<br />
Turnover 215,125 187,713<br />
Total expenditure (205,191) (187,651)<br />
Operating profit <strong>and</strong> profit before tax 9,934 62<br />
Taxation — —<br />
Profit after taxation 9,934 62<br />
Retained earnings at the beginning of the year 262 2,219<br />
Distribution of retained earnings as gift aid donation to parent (62) (2,019)<br />
Retained earnings at the end of the year 10,134 262<br />
Assets 47,936 51,287<br />
Liabilities (37,702) (50,925)<br />
Net assets 10,234 362<br />
Gift Aid payable to CHSW 9,934 62<br />
Page 24 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
<strong>Financial</strong> statements<br />
4 Income from charitable activities<br />
Total 2020 (£) Total 2019 (£)<br />
Funding from regional CCGs 999,303 878,224<br />
NHS Engl<strong>and</strong> Children's Hospice grant 832,007 762,673<br />
NHS Engl<strong>and</strong> Superannuation grant 33,800 33,800<br />
NHS Engl<strong>and</strong> Health education placements 21,824 11,294<br />
Total income from charitable activities 1,886,934 1,685,991<br />
CHSW acknowledges the award of grants for Little Bridge House, Charlton Farm <strong>and</strong> Little Harbour<br />
from the NHS Engl<strong>and</strong> Children’s Hospice grant. The project undertakes to sustain <strong>and</strong> develop existing<br />
high quality hospice care for palliative care children, their siblings <strong>and</strong> parents. It promotes education<br />
<strong>and</strong> learning needs of all those working in the sector in a responsive <strong>and</strong> flexible way. The funding <strong>and</strong><br />
associated expenditure have been treated as movements in restricted funds.<br />
In 2010, the charity succeeded in establishing contractual arrangements with the six CCGs whose areas the<br />
charity covers. These arrangements were constructed at the behest of government. A price per bed night<br />
has been agreed <strong>and</strong> it has also been agreed the volume of bed nights each CCG will purchase. There are no<br />
unfulfilled conditions in respect of these contractual arrangements.<br />
5 Government grants<br />
Included within other income were two COVID-19 related government grants recognised in the<br />
year ended 31 March 2020:<br />
Total 2020 (£) Total 2019 (£)<br />
Coronavirus Job Retention Scheme 27,000 —<br />
Retail, Hospitality <strong>and</strong> Leisure Grant Fund 750,000 —<br />
777,000 —<br />
6 Total expenditure<br />
Staff<br />
costs<br />
Direct<br />
costs<br />
Support<br />
costs<br />
Total<br />
2020 (£)<br />
Total<br />
2019 (£)<br />
(note 8) (note 7)<br />
Costs of raising funds 3,428,055 2,348,766 — 5,776,821 5,435,246<br />
Care of children <strong>and</strong> families 6,868,827 1,713,939 723,614 9,306,380 9,025,979<br />
10,296,882 4,062,705 723,614 15,083,201 14,461,225<br />
Governance costs of £35,497 are included within support costs <strong>and</strong> comprise the costs of running the<br />
charity. This includes insurance £1,082, external audit £13,167, consultancy fees <strong>and</strong> legal advice for the<br />
Trustees £18,259 <strong>and</strong> all costs of complying with constitutional <strong>and</strong> statutory requirements such as the<br />
costs of Board <strong>and</strong> Committee meetings £2,989.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 25
<strong>Financial</strong> statements<br />
7 Support costs<br />
Support costs reallocated to the expenditure<br />
category of care are as follows:<br />
Total 2020 (£) Total 2019 (£)<br />
Communications <strong>and</strong> IT 527,220 559,122<br />
Human resources 367,737 361,233<br />
Governance 35,497 48,110<br />
Finance 388,909 346,725<br />
Head office support 296,304 266,378<br />
Total support costs 1,615,667 1,581,568<br />
Less: staff costs (892,053) (903,088)<br />
723,614 678,480<br />
8 Employee information<br />
Staff costs: Total 2020 (£) Total 2019 (£)<br />
Salaries <strong>and</strong> wages 8,814,983 8,359,993<br />
Social security costs 723,080 685,906<br />
Pension costs 758,819 694,428<br />
10,296,882 9,740,327<br />
The average number of persons employed<br />
by the charity during the year was:<br />
FTE<br />
Total<br />
2020<br />
FTE<br />
Total<br />
2019<br />
Hospice services 145 185 143 181<br />
Fundraising <strong>and</strong> publicity 50 62 51 60<br />
Trading 73 106 66 95<br />
Management <strong>and</strong> finance 20 24 21 24<br />
288 377 281 360<br />
Two employees earned between £60,000 <strong>and</strong> £70,000 per annum in the year (2018-19: two). Two<br />
employees earned between £70,000 <strong>and</strong> £80,000 per annum in the year (2018-19: four). Two employees<br />
earned between £80,000 <strong>and</strong> £90,000 per annum in the year (2018-19: None). One employee earned<br />
between £100,000 <strong>and</strong> £110,000 per annum in the year (2018-19: one).<br />
Retirement benefits accrue under a defined benefit scheme for three (2018-19: three) of these higher<br />
paid employees. In addition, the charity paid £32,139 (2018-19: £29,996) into a defined contribution<br />
pension scheme for four (2018-19: four) of these higher paid employees. Salaries <strong>and</strong> wages include<br />
contributions in respect of salary exchange agreements in addition to contractual salary.<br />
Following advice from the Government Actuary’s Department as part of the 2016 NHS pension scheme<br />
valuation process, the Department of Health <strong>and</strong> Social Care (DHSC) confirmed the employer contribution<br />
rate will increase to 20.68% with effect from 1 April 2019. The government has committed to cover this<br />
cost increase for a certain category of employer’s, including CHSW, recurring annually until 31 March 2021.<br />
All Trustees <strong>and</strong> certain senior employees who have authority <strong>and</strong> responsibility for planning, directing <strong>and</strong><br />
controlling the activities of the Charity are considered to be key management personnel. Total employment<br />
costs (including social security <strong>and</strong> pension contributions) in respect of senior employees is £554,988<br />
(2018-19: £529,532). As stated in note 9, there is no cost of employment in respect of the Trustees.<br />
Page 26 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
<strong>Financial</strong> statements<br />
<strong>Financial</strong> statements<br />
During the year, redundancy <strong>and</strong> settlement payments were made totalling £10,885 (2018-19: £18,493).<br />
At 31 March 2020, the payments outst<strong>and</strong>ing were £nil (2018-19: £3,150).<br />
9 Trustees remuneration <strong>and</strong> other related party transactions<br />
None of the Trustees received emoluments or benefits in kind during the year in respect of their duties as a<br />
Trustee (2018-19: nil). Six of the Trustees received reimbursement of expenses in the year of £2,602 (2018-<br />
19: four Trustees £1,004) for travel. During the year the charity recharged expenses of £101,667 (2018-<br />
19: £107,424) to C H S W Promotions Limited <strong>and</strong> remittances were £114,179 (2018-19: £91,509). The<br />
amount due from C H S W Promotions at the year end was £32,532 (2018-19: £45,044) which is included in<br />
debtors. Included within this debtor is management recharges of £101,667 (2018-19: £89,520).<br />
10 Net (expenditure) / income for the year<br />
The net (expenditure) / income is stated after charging:<br />
Total 2020 (£) Total 2019 (£)<br />
Depreciation <strong>and</strong> amortisation of owned tangible<br />
<strong>and</strong> intangible fixed assets<br />
1,131,716 1,102,457<br />
Loss/(profit) on disposal of fixed assets — 8,126<br />
Operating lease rentals 786,604 731,866<br />
Auditor's remuneration - audit fees 15,679 18,087<br />
- other fees 5,803 787<br />
11 Tangible fixed assets - charity <strong>and</strong> group<br />
Freehold<br />
l<strong>and</strong> <strong>and</strong><br />
properties<br />
(£)<br />
Leasehold<br />
property<br />
(£)<br />
Motor<br />
vehicles<br />
(£)<br />
Office<br />
furniture /<br />
equipment<br />
(£)<br />
Fittings<br />
<strong>and</strong> other<br />
equipment<br />
(£)<br />
Total<br />
(£)<br />
Cost:<br />
At 1 April 2019 21,626,144 587,109 266,347 957,637 2,581,338 26,018,575<br />
Additions 50,015 59,736 17,128 212,847 495,462 835,188<br />
Disposals - (361) — (85,483) (23,243) (109,087)<br />
At 31 March 2020 21,676,159 646,484 283,475 1,085,001 3,053,557 26,744,676<br />
Depreciation:<br />
At 1 April 2019 1,694,696 214,056 209,366 682,978 1,767,345 4,568,441<br />
Charged in<br />
the year<br />
463,057 91,415 27,305 158,309 256,391 996,477<br />
Disposals — (361) — (85,483) (23,243) (109,087)<br />
At 31 March 2020 2,157,753 305,110 236,671 755,804 2,000,493 5,455,831<br />
Net book value:<br />
At 31 March 2020 19,518,406 341,374 46,804 329,197 1,053,064 21,288,845<br />
At 31 March 2019 19,931,448 373,053 56,981 274,659 813,993 21,450,134<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 27
<strong>Financial</strong> statements<br />
11a Freehold l<strong>and</strong> <strong>and</strong> properties - charity <strong>and</strong> group<br />
Little Bridge House<br />
(£)<br />
Charlton Farm<br />
(£)<br />
Little Harbour<br />
(£)<br />
Total<br />
(£)<br />
Cost:<br />
At 1 April 2019 3,470,288 12,440,550 5,715,306 21,626,144<br />
Additions 10,164 39,851 — 50,015<br />
At 31 March 2020 3,480,452 12,480,401 5,715,306 21,676,159<br />
Depreciation:<br />
At 1 April 2019 930,851 534,868 228,977 1,694,696<br />
Charged in the year 101,544 267,086 94,427 463,057<br />
At 31 March 2020 1,032,395 801,954 323,404 2,157,753<br />
Net book value:<br />
At 31 March 2020 2,448,057 11,678,447 5,391,902 19,518,406<br />
At 31 March 2019 2,539,437 11,905,682 5,486,329 19,931,448<br />
Included in the above is l<strong>and</strong> totalling £2,947,681 which is not depreciated.<br />
12 Intangible fixed assets - charity <strong>and</strong> group<br />
Computer Software (£)<br />
Cost:<br />
At 1 April 2019 701,782<br />
Additions 75,584<br />
Disposals (20,283)<br />
At 31 March 2020 757,083<br />
Amortisation:<br />
At 1 April 2019 374,012<br />
Charged in the year 135,239<br />
Disposals (20,283)<br />
At 31 March 2020 488,968<br />
Net book value:<br />
At 31 March 2020 268,115<br />
At 31 March 2019 327,770<br />
Page 28 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
<strong>Financial</strong> statements<br />
13(a) Investments<br />
Listed investments:<br />
Group 2020<br />
(£)<br />
Group 2019<br />
(£)<br />
Charity 2020<br />
(£)<br />
Charity 2019<br />
(£)<br />
UK equities <strong>and</strong> bonds at cost 4,184,520 4,332,505 4,184,520 4,332,505<br />
Overseas equities <strong>and</strong> bonds at cost 2,426,687 1,733,749 2,426,687 1,733,749<br />
Multi-fund assets at cost 2,625,590 2,713,625 2,625,590 2,713,625<br />
Other assets at cost 1,585,058 1,595,820 1,585,058 1,595,820<br />
Cumulative net gains on revaluation<br />
at period end<br />
274,890 1,350,101 274,890 1,350,101<br />
Market value at period end [Note 13(b)] 11,096,745 11,725,800 11,096,745 11,725,800<br />
Cash held as part of<br />
investment portfolios<br />
193,597 317,376 193,597 317,376<br />
11,290,342 12,043,176 11,290,342 12,043,176<br />
Other investments:<br />
Donated l<strong>and</strong> held for<br />
investment purposes<br />
86,000 86,000 86,000 86,000<br />
Cash held on deposit — 3,047,514 — 3,047,514<br />
Investment in C H S W Promotions Limited<br />
Shares at cost — — 100 100<br />
11,376,342 15,176,690 11,376,442 15,176,790<br />
The charity’s investment portfolio was managed by Cazenove Capital Management <strong>and</strong> Sarasin &<br />
Partners throughout the period. Investments are held in a diverse portfolio of funds, managed by<br />
Sarasin, Cazenove <strong>and</strong> other fund managers, <strong>and</strong> in Government stocks. The only holdings in excess<br />
of 5% of total investments were Sarasin Endowments Fund (16.2%), Cazenove’s Charities Equity<br />
Income Fund (6.9%) <strong>and</strong> Schroder Sterling Corporate Bond (7.2%).<br />
C H S W Promotions Limited is a wholly owned subsidiary which is registered in Engl<strong>and</strong> <strong>and</strong> Wales <strong>and</strong><br />
whose principal activity is the sale of bought-in goods for the benefit of CHSW. The shares are Ordinary<br />
Shares of £1 each <strong>and</strong> are shown at cost. The company pays its taxable profits to the charity under Gift Aid.<br />
13(b) Listed investments market value - charity <strong>and</strong> group<br />
Listed investments: Total 2020 (£) Total 2019 (£)<br />
Market value at 1 April 11,725,800 11,348,415<br />
Additions at cost 2,108,989 996,220<br />
Sales proceeds (1,698,070) (866,170)<br />
Equalisations (1,856) (158)<br />
Net (losses)/gains (1,038,118) 247,493<br />
At 31 March 11,096,745 11,725,800<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 29
<strong>Financial</strong> statements<br />
14 Stock<br />
Listed investments:<br />
Group 2020<br />
(£)<br />
Group 2019<br />
(£)<br />
Charity 2020<br />
(£)<br />
Charity 2019<br />
(£)<br />
Stock for resale 31,825 19,730 — —<br />
15 Debtors<br />
Group 2020<br />
(£)<br />
Group 2019<br />
(£)<br />
Charity 2020<br />
(£)<br />
Charity 2019<br />
(£)<br />
Amounts owed by group undertakings — — 32,532 45,044<br />
Legacies receivable 1,388,810 326,783 1,388,810 326,783<br />
Other debtors including tax recoverable 1,605,830 447,957 1,605,392 433,637<br />
Prepayment <strong>and</strong> accrued interest 486,669 393,527 486,669 393,527<br />
3,481,309 1,168,267 3,513,403 1,198,991<br />
16 Creditors<br />
Group 2020<br />
(£)<br />
Group 2019<br />
(£)<br />
Charity 2020<br />
(£)<br />
Charity 2019<br />
(£)<br />
Trade creditors 222,603 255,932 222,603 254,966<br />
Taxation <strong>and</strong> social security 180,552 174,824 180,552 174,824<br />
Sundry creditors 184,769 333,618 184,769 333,602<br />
Accruals <strong>and</strong> deferred income 651,762 311,736 646,592 306,836<br />
1,239,686 1,076,110 1,234,516 1,070,228<br />
Deferred income of £387,505 arose in the year <strong>and</strong> £209,125 brought forward from 2018-19 was released.<br />
Deferred income includes income relating to registrations <strong>and</strong> sponsorship for upcoming events £296,185<br />
(18/19: £128,775) <strong>and</strong> lottery subscriptions for future draws £91,320 (18/19: £80,349).<br />
17 Endowment funds - charity <strong>and</strong> group<br />
1 April 2019<br />
(£)<br />
Income<br />
(£)<br />
Expenditure<br />
(£)<br />
Gains /<br />
(losses)<br />
(£)<br />
Transfers<br />
(£)<br />
31 March<br />
2020<br />
(£)<br />
Endowment 1,476,221 — — (154,456) 78,891 1,400,656<br />
1 April 2018<br />
(£)<br />
Income<br />
(£)<br />
Expenditure<br />
(£)<br />
Gains /<br />
(losses)<br />
(£)<br />
Transfers<br />
(£)<br />
31 March<br />
2019<br />
(£)<br />
Endowment 1,447,335 — — 28,886 — 1,476,221<br />
Page 30 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
<strong>Financial</strong> statements<br />
During 2007, the charity received an expendable endowment of £1 million, the income from which is<br />
restricted. This income is intended to fund care staff costs at Charlton Farm <strong>and</strong>, in particular, the post<br />
of Head of Care. Income in 2019-20 is £42,229 (2019-20: £39,492) <strong>and</strong> is included in restricted funds<br />
income on the Statement of <strong>Financial</strong> Activities.<br />
The loss on investments in 2019-20 is £154,456 (2018-19: gain £28,886).<br />
During the year ended 31 March 2020, £78,891 of other funds previously restricted to Charlton Farm<br />
were transferred to the endowment fund with the consent of the donors.<br />
18 Restricted funds - charity <strong>and</strong> group<br />
1 April 2019<br />
(£)<br />
Income<br />
(£)<br />
Expenditure<br />
(£)<br />
Transfer<br />
between<br />
funds (£)<br />
31 March 2020<br />
(£)<br />
Little Harbour capital 380,000 — — — 380,000<br />
380,000 — — — 380,000<br />
NHS Engl<strong>and</strong> grants — 832,007 (832,007) — —<br />
Little Bridge House funds 61,187 558,798 (488,674) (73,548) 57,763<br />
Charlton Farm funds 208,833 1,436,607 (1,285,276) (171,868) 188,296<br />
Little Harbour funds 50,537 548,317 (514,163) (35,824) 48,867<br />
CHSW funds 8,297 45,944 (18,027) (4,796) 31,418<br />
708,854 3,421,673 (3,138,147) (286,036) 706,344<br />
1 April 2018<br />
(£)<br />
Income<br />
(£)<br />
Expenditure<br />
(£)<br />
Transfer<br />
between<br />
funds (£)<br />
31 March 2019<br />
(£)<br />
Little Harbour capital 380,000 — — 0 380,000<br />
380,000 — — — 380,000<br />
NHS Engl<strong>and</strong> grants — 807,639 (807,639) — —<br />
Little Bridge House funds 41,243 484,264 (415,443) (48,877) 61,187<br />
Charlton Farm funds 117,680 300,054 (183,594) (25,307) 208,833<br />
Little Harbour funds 50,551 611,956 (598,953) (13,017) 50,537<br />
CHSW funds 22,607 17,720 (32,030) — 8,297<br />
612,081 2,221,633 (2,037,659) (87,201) 708,854<br />
The NHS Engl<strong>and</strong> grant is the NHS Engl<strong>and</strong> ‘Children’s Hospice grant’ which was given to sustain <strong>and</strong><br />
develop the existing high quality hospice care for palliative care children, their siblings <strong>and</strong> parents.<br />
The Little Bridge House, Charlton Farm, Little Harbour <strong>and</strong> CHSW funds include donations towards<br />
specific projects at each hospice <strong>and</strong> across the whole charity respectively, including music therapy,<br />
equipment, rooms <strong>and</strong> gardens, parties <strong>and</strong> presents, play equipment <strong>and</strong> materials, salary <strong>and</strong> other<br />
revenue costs, <strong>and</strong> funding of mums <strong>and</strong> dads groups.<br />
Other legacies <strong>and</strong> donations are restricted to be spent at a specific hospice. Seven restricted legacies<br />
recognised in the year were over £50,000, of which a total of £1,087,333 was donated for Charlton<br />
Farm, £137,000 was donated for Little Harbour <strong>and</strong> £312,000 was for Little Bridge House.<br />
Transfers between funds represent the amounts spent on capital assets from revenue funds. Only<br />
assets with a continuing restriction are maintained as restricted funds.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 31
<strong>Financial</strong> statements<br />
19 Unrestricted funds<br />
2019-20 group<br />
1 April<br />
2019 (£)<br />
Income<br />
(£)<br />
Expenditure<br />
(£)<br />
Investment<br />
(losses) /<br />
gains (£)<br />
Transfer<br />
between<br />
funds (£)<br />
31 March<br />
2020 (£)<br />
Designated capital funds 21,397,904 — (1,131,716) — 910,772 21,176,960<br />
Jill Farwell's Memorial fund 21,605 — (21,525) — — 80<br />
Total designated funds 21,419,509 — (1,153,241) — 910,772 21,177,040<br />
Unrestricted general funds 15,919,709 12,351,388 (10,791,813) (883,662) (703,627) 15,891,995<br />
Total unrestricted funds 37,339,218 12,351,388 (11,945,054) (883,662) 207,145 37,069,035<br />
2019-20 charity<br />
1 April<br />
2019 (£)<br />
Income<br />
(£)<br />
Expenditure<br />
(£)<br />
Investment<br />
(losses) /<br />
gains (£)<br />
Transfer<br />
between<br />
funds (£)<br />
31 March<br />
2020 (£)<br />
Designated capital funds 21,397,904 — (1,131,716) — 910,772 21,176,960<br />
Jill Farwell's Memorial fund 21,605 — (21,525) — — 80<br />
Total designated funds 21,419,509 — (1,153,241) — 910,772 21,177,040<br />
Unrestricted general funds 15,919,447 12,238,003 (10,688,300) (883,662) (703,627) 15,881,861<br />
Total unrestricted funds 37,338,956 12,238,003 (11,841,541) (883,662) 207,145 37,058,901<br />
2018-19 group<br />
1 April<br />
2018 (£)<br />
Income<br />
(£)<br />
Expenditure<br />
(£)<br />
Investment<br />
(losses) /<br />
gains (£)<br />
Transfer<br />
between<br />
funds (£)<br />
31 March<br />
2019 (£)<br />
Designated capital funds 22,213,623 — (1,110,728) — 295,009 21,397,904<br />
Jill Farwell's Memorial fund 43,99 5 — (22,390) — — 21,605<br />
Care <strong>and</strong> Development fund 1,365,127 — — — (1,365,127) —<br />
Total designated funds 23,622,745 — (1,133,118) — (1,070,118) 21,419,509<br />
Unrestricted general funds 14,215,637 11,618,594 (11,290,448) 218,607 1,157,319 15,919,709<br />
Total unrestricted funds 37,838,382 11,618,594 (12,423,566) 2 18,607 87,201 37,339,218<br />
2018-19 charity<br />
1 April<br />
2018 (£)<br />
Income<br />
(£)<br />
Expenditure<br />
(£)<br />
Investment<br />
(losses) /<br />
gains (£)<br />
Transfer<br />
between<br />
funds (£)<br />
31 March<br />
2019 (£)<br />
Designated capital funds 22,213,623 — (1,110,728) — 295,009 21,397,904<br />
Jill Farwell's Memorial fund 43,995 — (22,390) — — 21,605<br />
Care <strong>and</strong> Development fund 1,365,127 — — — (1,365,127) —<br />
Total designated funds 23,622,745 — (1,133,118) — (1,070,118) 21,419,509<br />
Unrestricted general funds 14,213,418 11,620,613 (11,290,510) 218,607 1,157,319 15,919,447<br />
Total unrestricted funds 37,836,163 11,620,613 (12,423,628) 218,607 87,201 37,338,956<br />
The Trustees have established designated capital funds which are equivalent to the net book value of unrestricted tangible<br />
<strong>and</strong> intangible fixed assets used to enable CHSW to carry out its charitable work. Of the net transfers between funds,<br />
£286,036 represent transfers from restricted funds, being the amounts spent on capital assets where the restrictions on the<br />
donations for assets have been fulfilled. In the year £736,621 was spent on fixed assets from general unrestricted funds<br />
<strong>and</strong> was transferred to designated capital funds. In addition, £78,891 was transferred from the Charton Farm restricted fund<br />
to the Endowment fund (note 17) in line with the donors wishes.<br />
Jill Farwell’s Memorial Fund was established by donations to remember Jill’s death in September 2004. The Trustees, together<br />
Page 32 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
<strong>Financial</strong> statements<br />
with Eddie Farwell, decided that the funds will be used to provide ongoing music therapy.<br />
The group maintain unrestricted general funds with the primary aim of reducing the dependency of<br />
the charity on any of its income streams as they develop in the future <strong>and</strong> to specifically fund essential<br />
projects to improve the service of the organisation.<br />
20 Analysis of fund balances between net assets - group<br />
As at 31 March 2020<br />
Unrestricted<br />
(£)<br />
Restricted<br />
(£)<br />
Endowment<br />
(£)<br />
Total<br />
(£)<br />
Fixed assets 21,176,960 380,000 — 21,556,960<br />
Investments 9,975,686 — 1,400,656 11,376,342<br />
Net current assets 5,916,389 326,344 — 6,242,733<br />
37,069,035 706,344 1,400,656 39,176,035<br />
As at 31 March 2019<br />
Unrestricted<br />
(£)<br />
Restricted<br />
(£)<br />
Endowment<br />
(£)<br />
Total<br />
(£)<br />
Fixed assets 21,397,904 380,000 — 21,777,904<br />
Investments 13,700,469 — 1,476,221 15,176,690<br />
Net current assets 2,240,845 328,854 — 2,569,699<br />
37,339,218 708,854 1,476,221 39,524,293<br />
21 Status of the charitable company<br />
The charity is a company limited by guarantee, having no share capital. The liability of each member,<br />
in the event of winding-up, is limited to £1.<br />
22 Operating lease commitments<br />
The total commitment under operating leases from premises is as follows<br />
Payments falling due: Total 2020 (£) Total 2019 (£)<br />
Within one year 785,501 703,059<br />
Between two <strong>and</strong> five years 2,100,100 2,235,299<br />
In more than five years 994,616 923,202<br />
The total commitment under operating leases for other assets is as follows<br />
Payments falling due: Total 2020 (£) Total 2019 (£)<br />
Within one year 19,973 41,135<br />
Between two <strong>and</strong> five years 5,796 26,749<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 33
<strong>Financial</strong> statements<br />
23 Pension commitments<br />
CHSW employees belonged to two principal pension schemes during the year. The NHS pension<br />
scheme for eligible staff is a defined benefit scheme. Non eligible members of staff are offered a<br />
defined contribution scheme administered by Scottish Widows.<br />
NHS scheme<br />
Only ex-NHS qualified doctors <strong>and</strong> nurses are eligible to join the NHS scheme. The NHS scheme is a<br />
multi-employer defined benefit pension scheme. As the charity is unable to identify its share of the<br />
assets <strong>and</strong> liabilities of the scheme on a consistent <strong>and</strong> reliable basis, the scheme is treated by the<br />
charity as if it were a defined contribution scheme, in accordance with FRS 102 ‘Retirement benefits’.<br />
Total pension contributions <strong>and</strong> liabilities<br />
The total pension costs charged in the year represent the charity’s contributions to all the schemes <strong>and</strong><br />
amounted to £758,819 (2018-19 : £694,428). The charity’s contributions outst<strong>and</strong>ing at 31 March 2020<br />
were £63,996 (2019 : £58,714). The assets <strong>and</strong> liabilities of both schemes are held separately from those<br />
of the charity, in independently administered pension schemes.<br />
24 Capital commitments<br />
At the balance sheet date, the Charity had capital commitments totalling £43,528 (2018-19: £nil).<br />
25 Indemnities<br />
Legacies<br />
The charity has indemnified the executors of three estates in respect of residuary legacies distributed<br />
to the charity. The maximum liability under the indemnities at the date the accounts were approved<br />
is £27,437 (2018-19: £27,437).<br />
Solicitors’ unclaimed client funds<br />
Following the passing of relevant legislation, solicitors are now permitted to distribute to charities<br />
certain unclaimed client funds, however an indemnity is required from those charities to indefinitely<br />
commit to refund any funds that are subsequently claimed. The total of the charity’s indemnities is<br />
£104,919 (2018-19: £97,537).<br />
26 Contingent assets - legacies<br />
As at 31 March 2020, the charity had been notified of a number of residuary legacies, the values<br />
of which were uncertain, as the executors were awaiting confirmation of other claims on the estate<br />
<strong>and</strong> may also be in the process of realising assets such as residential property. The estimated total of<br />
these legacies could be up to £1.6m.<br />
None of these legacies have been accrued in the financial statements.<br />
Page 34 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
<strong>Financial</strong> statements<br />
27 Events after the balance sheet<br />
In July 2020, the decision was taken to exercise the break clause on the office premises at Chinon Court<br />
in Tiverton, at that point all fixtures <strong>and</strong> fittings associated with the lease were written down in full.<br />
28 Note to the cash flow statement<br />
28(a) Reconciliation of net movement in funds to<br />
the net cash flow from operating activities<br />
Total 2020 (£) Total 2019 (£)<br />
Net movement in funds (348,258) (373,505)<br />
Add back: depreciation <strong>and</strong> amortisation charges 1,131,716 1,102,457<br />
Add back: gains / (losses) on investments 1,038,118 (247,493)<br />
Deduct: investment income <strong>and</strong> deposit interest (410,510) (361,427)<br />
Loss / (profit) on disposal of fixed assets — 8,126<br />
(Increase) in stocks (12,095) (1,539)<br />
(Increase) / decrease in debtors (2,313,042) 18,646<br />
Increase in creditors 163,576 94,498<br />
Net cash (used in) / provided by operating activities (750,495) 239,763<br />
28(b) Analysis of changes in net cash resources<br />
Total 2019 (£) Cash flow (£) Total 2020 (£)<br />
Net movement in funds 2,457,812 1,511,473 3,969,285<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 35
<strong>Financial</strong> statements<br />
29. Prior year SOFA<br />
Income from:<br />
Notes<br />
Unrestricted<br />
funds (£)<br />
Restricted<br />
funds (£)<br />
Endowment<br />
funds (£)<br />
Total 2019<br />
funds (£)<br />
Donations <strong>and</strong> legacies 1 5,962,173 1,374,502 — 7,336,675<br />
Charitable activities:<br />
statutory funding<br />
4 878,352 807,639 — 1,685,991<br />
Trading activities 3 4,454,738 — 4,454,738<br />
Investments 2 321,935 39,492 — 361,427<br />
Other 1,396 — — 1,396<br />
Total income 11,618,594 2,221,633 — 13,840,227<br />
Expenditure on:<br />
Trading activities 3 3,331,279 — — 3,331,279<br />
Total income net of<br />
trading expenditure<br />
Expenditure on:<br />
8,287,315 2,221,633 — 10,508,948<br />
Raising funds 6 2,067,657 — — 2,067,657<br />
Investment management fees 6 36,310 — — 36,310<br />
Net income available for<br />
charitable activities<br />
Charitable activities:<br />
6,183,348 2,221,633 — 8,404,981<br />
Care of children <strong>and</strong> families 6 6,988,320 2,037,659 — 9,025,979<br />
Total expenditure 6 12,423,566 2,037,659 — 14,461,225<br />
Net income / (expenditure) before<br />
(losses) /gains on investments<br />
10 (804,972) 183,974 — (620,998)<br />
Net (losses) / gains on investments 13(b) 218,607 — 28,886 247,493<br />
Net income (586,365) 183,974 28,886 (373,505)<br />
Transfer between funds 18 87,201 (87,201) — —<br />
Net movement in funds (499,164) 96,773 28,886 (373,505)<br />
Reconciliation of funds:<br />
Total funds brought forward 20 37,838,382 612,081 1,447,335 39,897,798<br />
Total funds carried forward 20 37,339,218 708,854 1,476,221 39,524,293<br />
Page 36 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
<strong>Financial</strong> statements<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 37
Accounting policies<br />
Basis of preparation <strong>and</strong> accounting policies<br />
CHSW is a registered charity with the Charity Commission Engl<strong>and</strong> <strong>and</strong> Wales (charity number 1003314) <strong>and</strong> was incorporated<br />
as a private company limited by guarantee (company number 02620879). Its registered office is Little Bridge House, Redl<strong>and</strong>s<br />
Road, Fremington, Barnstaple, Devon EX31 2PZ. This is also the registered address of the subsidiary.<br />
The following accounting policies have been applied consistently in dealing with items that are considered material in<br />
relation to the financial statements:<br />
(a) Basis of preparation of accounts<br />
The financial statements have been prepared in accordance<br />
with Accounting <strong>and</strong> <strong>Report</strong>ing by Charities: Statement of<br />
Recommended Practice applicable to charities preparing their<br />
accounts in accordance with the <strong>Financial</strong> <strong>Report</strong>ing St<strong>and</strong>ard<br />
applicable in the UK <strong>and</strong> Republic of Irel<strong>and</strong> (FRS 102) (effective<br />
1 January 2015) (Charities SORP (FRS 102)), the <strong>Financial</strong><br />
<strong>Report</strong>ing St<strong>and</strong>ard applicable in the UK <strong>and</strong> Republic of Irel<strong>and</strong><br />
(FRS 102), the Companies Act 2006 <strong>and</strong> Charities Act 2011.<br />
CHSW meets the definition of a public benefit entity<br />
under FRS 102.<br />
These financial statements consolidate the results of the<br />
charity <strong>and</strong> its wholly owned subsidiary, C H S W Promotions<br />
Limited, on a line by line basis. All intergroup transactions<br />
are eliminated on consolidation.<br />
A separate statement of financial activities <strong>and</strong> income<br />
<strong>and</strong> expenditure account for the charity has not been<br />
presented because the charity has taken advantage of<br />
the exemption afforded by section 408 of the Companies<br />
Act 2006. The charity has taken advantage of the exemptions<br />
in FRS 102 from the requirements to present a charity<br />
only cash flow statement <strong>and</strong> certain disclosures about<br />
the charity’s financial instruments.<br />
(b) Going concern<br />
<strong>and</strong> use of each restricted fund is set out in the notes to<br />
the accounts where material.<br />
The endowment fund is to be retained for the benefit of the<br />
charity as a capital fund. The income generated from the capital<br />
is restricted due to the wishes of the donor. The endowment<br />
fund included in these accounts is an expendable endowment.<br />
Unrestricted funds are available for use at the discretion of the<br />
Trustees in furtherance of the general objectives of the charity.<br />
The Trustees have designated certain unrestricted funds<br />
as capital funds, representing the net book value of the<br />
unrestricted fixed assets used to enable CHSW to carry<br />
out its charitable work. They have also decided that the Jill<br />
Farwell Fund will be used to provide ongoing music therapy.<br />
(d) Income<br />
Income is recognised when the charity has entitlement to the<br />
funds, any performance conditions attached to the income<br />
have been met, it is probable that the income will be received<br />
<strong>and</strong> the amount can be measured reliably.<br />
Income from voluntary sources is received by way of<br />
donations <strong>and</strong> gifts <strong>and</strong> is included in full in the Statement<br />
of <strong>Financial</strong> Activities when receivable.<br />
Income from gift aid tax reclaims is recognised for all donations<br />
The group has cash resources <strong>and</strong> no requirement for<br />
external funding to fund normal operating activities. The<br />
Trustees believe that there are no material uncertainties<br />
about the group’s ability to continue in operating existence<br />
for the foreseeable future, having reviewed our financial<br />
position, reserves levels <strong>and</strong> future plans. In forming these<br />
conclusions, the Trustees have considered the ongoing<br />
financial impact of the COVID-19 p<strong>and</strong>emic. They continue<br />
to believe the going concern basis of accounting appropriate<br />
in preparing the annual financial statements.<br />
(c) Fund accounting<br />
Restricted funds are those to be used in accordance with<br />
specific instructions imposed by donors or which have<br />
been raised by the charity for specific purposes. The aim<br />
<br />
The support <strong>and</strong> care<br />
we receive from<br />
Children’s Hospice<br />
South West is fantastic<br />
<strong>and</strong> we are so grateful<br />
to be able to enjoy<br />
time as a family, with a<br />
chance to rest <strong>and</strong> be<br />
‘Mum’ <strong>and</strong> ‘Dad’ again.<br />
Page 38 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
made prior to the year end, where valid gift aid declarations are<br />
held, <strong>and</strong> allocated to the same fund as the underlying donation.<br />
Donated services <strong>and</strong> facilities<br />
Properties, investments, <strong>and</strong> other fixed assets donated to<br />
the charity are included as income <strong>and</strong> recognised as assets at<br />
market value at the time that the charity takes control of the<br />
item. Donated services <strong>and</strong> facilities are included as income, if<br />
material, at their estimated value to the charity when received,<br />
<strong>and</strong> under the appropriate expenditure heading depending<br />
on the nature of service provided, at the same value <strong>and</strong><br />
time. Although it is of significant value to the charity, time<br />
donated by the charity’s many volunteers <strong>and</strong> Friends Group<br />
members is not recognised in the accounts as it cannot be<br />
reliably valued <strong>and</strong> is specifically exempted by the SORP.<br />
Details of the role played by volunteers <strong>and</strong> the nature of their<br />
contribution can be found in the Trustees’ report.<br />
Stocks of donated goods for resale cannot be measured<br />
reliably in a cost-effective manner, due to the high volume<br />
of low value items received. Therefore donated goods<br />
for resale are not recognised on receipt, but their value is<br />
recognised as income when sold.<br />
Legacy income<br />
Legacies are recognised when the charity is entitled to the<br />
funds (when there is a valid will <strong>and</strong> they are notified of the<br />
benefactors death), when receipt is probable (indicated by<br />
grant of probate) <strong>and</strong> the charity can reliably estimate the<br />
legacy income receivable.<br />
Recognition is therefore dependent upon the type of legacy.<br />
Pecuniary Legacies are recognised when notification is<br />
received <strong>and</strong> probate has been granted.<br />
Residuary legacies are recognised when notification is<br />
received, probate has been granted <strong>and</strong> a reliable<br />
estimate of the fair value can be made (the executors<br />
have compiled draft accounts).<br />
Discretionary/conditional legacies are not recognised<br />
until a distribution has been made or all conditions<br />
have been satisfied.<br />
Where legacies have been notified to the charity but the criteria<br />
for income recognition have not been met the legacy is treated<br />
as a contingent asset <strong>and</strong> disclosed if material (note 26).<br />
Income received in advance<br />
Income received in advance of an event or provision of<br />
other specific service, is deferred until the criteria for<br />
income recognition are met.<br />
Interest received<br />
Interest on funds held on deposit is included when receivable.<br />
Investment income<br />
Investment income is credited to income on an accruals basis.<br />
Grants (including Government grants)<br />
Grants received for specific purposes are accounted for<br />
as restricted funds. Grants that provide core funding or are<br />
of a general nature provided by charitable foundations are<br />
recorded as donations. The grants detailed in note 4<br />
have been included as income from charitable activities<br />
as they relate to the provision of care services. Grants are<br />
recognised in full when entitlement is established.<br />
(e) Expenditure<br />
Expenditure is accounted for on an accruals basis <strong>and</strong> is<br />
recognised once there is a legal or constructive obligation<br />
to make a payment to a third party, it is probable that<br />
settlement will be required <strong>and</strong> the amount of the obligation<br />
can be measured reliably. Expenditure has been classified<br />
under the following activity headings.<br />
The costs of raising funds are those incurred in encouraging<br />
individuals <strong>and</strong> organisations to make voluntary<br />
contributions <strong>and</strong> donations to the charity. This includes<br />
the costs of the charity’s fundraising offices <strong>and</strong> supporter<br />
groups, the cost of trading <strong>and</strong> investment management fees.<br />
Charitable expenditure comprises direct expenditure<br />
including direct staff costs attributable to its care<br />
activities <strong>and</strong> support costs.<br />
The treatment of VAT is detailed in (h) below.<br />
Support costs include central functions <strong>and</strong> are allocated to<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 39
Accounting policies<br />
activity cost categorised on a basis consistent with the use<br />
of resources. This allocation is carried out on a substantive<br />
activity basis <strong>and</strong> does not take account of incidental use.<br />
Governance costs are included within support costs <strong>and</strong><br />
comprise the costs of running the charity. This includes<br />
external audit, any legal advice for the Trustees <strong>and</strong> all costs<br />
of complying with constitutional <strong>and</strong> statutory requirements<br />
such as the costs of Board <strong>and</strong> Committee meetings.<br />
(f) Operating leases<br />
Rentals applicable to operating leases, where substantially<br />
all the risks <strong>and</strong> rewards of ownership remain with the lessor,<br />
are charged in the statement of financial activities over<br />
the life of the lease on a straight line basis. They include retail<br />
shops, central offices, vehicles <strong>and</strong> photocopiers.<br />
(g) Pension costs<br />
The charity contributed to one defined benefit scheme in<br />
the year, but also operates a defined contribution pension<br />
scheme. Pension costs charged to the statement of<br />
financial activities represent the contributions payable<br />
by the charity in respect of the accounting period.<br />
Both schemes are accounted for as defined contribution<br />
schemes. Note 23 provides a detailed explanation.<br />
(h) Taxation<br />
The charity is exempt from Corporation Tax on its<br />
charitable activities.<br />
The charity is registered for Value Added Tax. Irrecoverable<br />
VAT is allocated to the areas in which it is incurred.<br />
(i) Tangible <strong>and</strong> intangible fixed assets<br />
Tangible <strong>and</strong> intangible fixed assets are depreciated <strong>and</strong><br />
amortised in equal annual instalments, using the straight<br />
line basis, over their estimated useful lives, as follows:<br />
Little Bridge House, Charlton Farm<br />
<strong>and</strong> Little Harbour<br />
Other freehold buildings<br />
Leasehold property<br />
Medical equipment<br />
Furniture <strong>and</strong> equipment; fixtures <strong>and</strong> fittings<br />
Garden, play <strong>and</strong> external equipment<br />
Soft furnishings<br />
Computer equipment <strong>and</strong> software<br />
Motor vehicles<br />
50 years<br />
5-50 years<br />
Life of lease<br />
5-10 years<br />
4-20 years<br />
5-10 years<br />
4-5 years<br />
3-5 years<br />
4 years<br />
No depreciation is provided on freehold l<strong>and</strong>.<br />
The cost of minor additions, defined as those costing less than<br />
£500 each, are expensed in the year in which they are incurred.<br />
(j) Fixed asset investments<br />
Assets held with the intention of retaining them long-term<br />
for the continuing benefit of the charity through income<br />
<strong>and</strong> capital appreciation are classified as fixed asset<br />
investments. These may include investments listed on<br />
a recognised stock exchange (or ones valued by reference<br />
to such investments, such as common investment funds,<br />
open ended investment companies, <strong>and</strong> unit trusts),<br />
investment l<strong>and</strong> or properties, investments in subsidiary<br />
undertakings, <strong>and</strong> cash held for investment purposes.<br />
Fixed asset investments, other than cash deposits, are stated<br />
at market valuation <strong>and</strong> any gains or losses are dealt with in<br />
the statement of financial activities.<br />
Investment in the subsidiary is stated at cost.<br />
(k) Stock<br />
Stock consists of purchased goods for resale. Purchased goods<br />
for resale are valued at the lower of cost <strong>and</strong> net realisable<br />
value, after allowing for obsolete <strong>and</strong> slow moving stock.<br />
(l) Debtors<br />
Other debtors, legacies receivable <strong>and</strong> accrued income are<br />
recognised at the settlement amount due after any trade<br />
discounts. Prepayments are valued at the amount prepaid<br />
net of any trade discount.<br />
Page 40 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Accounting policies<br />
<br />
I shall never forget<br />
that first visit. I left<br />
feeling that my batteries<br />
had been fully charged<br />
ready to take up<br />
the fight <strong>and</strong> face<br />
whatever challenges<br />
lay ahead. I no longer<br />
felt alone as I had<br />
become part of a very<br />
special family.<br />
(m) Cash at bank <strong>and</strong> in h<strong>and</strong><br />
Cash at bank <strong>and</strong> in h<strong>and</strong> includes cash in h<strong>and</strong> <strong>and</strong> cash<br />
held by financial institutions.<br />
(n) Creditors<br />
Creditors are recognised when the charity has a present<br />
obligation resulting from a past event that will probably result<br />
in the transfer of funds to a third party <strong>and</strong> the amount due to<br />
settle the obligation can be measured or estimated reliably.<br />
(o) <strong>Financial</strong> instruments<br />
The charity only has basic financial instruments that result<br />
in the recognition of financial assets <strong>and</strong> financial liabilities.<br />
<strong>Financial</strong> instruments include cash at bank, trade debtors,<br />
legacies receivable, accrued income from financial instruments<br />
(comprising dividends <strong>and</strong> interest due from investments),<br />
trade <strong>and</strong> sundry creditors <strong>and</strong> accrued expenditure. <strong>Financial</strong><br />
instruments are initially recognised at transaction value <strong>and</strong><br />
subsequently measured at their settlement value.<br />
(p) Significant estimates <strong>and</strong> judgements<br />
Preparation of the financial statements requires management<br />
to make significant judgements <strong>and</strong> estimates. The items<br />
in the financial statements where these judgements <strong>and</strong><br />
estimates have been made include:<br />
Useful economic lives of tangible <strong>and</strong> intangible assets<br />
The annual depreciation <strong>and</strong> amortisation charges for<br />
the tangible <strong>and</strong> intangible assets are sensitive to changes<br />
in the estimated useful economic lives <strong>and</strong> residual<br />
values of the assets. The useful economic lives <strong>and</strong> residual<br />
values are amended when necessary to reflect current<br />
estimates <strong>and</strong> the physical condition of the assets.<br />
See notes 11 <strong>and</strong> 12 for the carrying amount of the<br />
tangible <strong>and</strong> intangible assets <strong>and</strong> policy (i) for the useful<br />
lives for each class of asset.<br />
Impairment of debtors<br />
The group makes an estimate of trade debtors <strong>and</strong> other<br />
debtors. When assessing the impairment of trade debtors<br />
<strong>and</strong> other debtors, management considers factors including<br />
the current credit rating of the debtor, the ageing profile of<br />
debtors <strong>and</strong> historical experience.<br />
Government Retail, Hospitality <strong>and</strong> Leisure Grants<br />
The full value of the retail, hospitality <strong>and</strong> leisure grants<br />
from the Government as part of their COVID-19 funding<br />
<strong>and</strong> support has been included within the financial<br />
statements for the year ended 31 March 2020. This is<br />
based on the announcement in the national media by<br />
the Government on 17 March 2020 that these funds<br />
would be available, <strong>and</strong> the subsequent documentation<br />
accompanying grant applications that outlined the<br />
eligibility date was the 11 March 2020. In addition, there<br />
are no substantive criteria which the group believes<br />
prevents it from having entitlement to the funds, the<br />
receipt is deemed to be probable <strong>and</strong> the amounts to be<br />
received can be clearly measured.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 41
Accounting policies<br />
Audit report<br />
Opinion<br />
We have audited the financial statements of CHSW for the<br />
year ended 31 March 2020 which comprise the Consolidated<br />
Statement of <strong>Financial</strong> Activities, Consolidated <strong>and</strong> Charity<br />
Balance Sheets, Consolidated Cash Flow Statement <strong>and</strong> notes<br />
to the financial statements, including a summary of significant<br />
accounting policies. The financial reporting framework that<br />
has been applied in their preparation is applicable law <strong>and</strong><br />
United Kingdom Accounting St<strong>and</strong>ards, including <strong>Financial</strong><br />
<strong>Report</strong>ing St<strong>and</strong>ard 102 ‘The <strong>Financial</strong> <strong>Report</strong>ing St<strong>and</strong>ard<br />
applicable in the UK <strong>and</strong> Republic of Irel<strong>and</strong>’ (United Kingdom<br />
Generally Accepted Accounting Practice).<br />
In our opinion the financial statements:<br />
give a true <strong>and</strong> fair view of the state of the group’s <strong>and</strong><br />
the charitable company’s affairs as at 31 March 2020<br />
<strong>and</strong> of the group’s incoming resources <strong>and</strong> application of<br />
resources for the year then ended;<br />
have been properly prepared in accordance with United<br />
Kingdom Generally Accepted Accounting Practice; <strong>and</strong><br />
have been prepared in accordance with the requirements<br />
of the Companies Act 2006.<br />
Basis for opinion<br />
We conducted our audit in accordance with<br />
International St<strong>and</strong>ards on Auditing (UK) (ISAs (UK)) <strong>and</strong><br />
applicable law. Our responsibilities under those st<strong>and</strong>ards<br />
are further described in the Auditor’s responsibilities<br />
for the audit of the financial statements section of our<br />
report. We are independent of the group in accordance<br />
with the ethical requirements that are relevant to our<br />
audit of the financial statements in the UK, including<br />
the FRC’s Ethical St<strong>and</strong>ard, <strong>and</strong> we have fulfilled<br />
our other ethical responsibilities in accordance with<br />
these requirements. We believe that the audit evidence<br />
we have obtained is sufficient <strong>and</strong> appropriate to<br />
provide a basis for our opinion.<br />
Conclusions relating to going concern<br />
We have nothing to report in respect of the following<br />
matters in relation to which the ISAs (UK) require us to<br />
report to you where:<br />
the Trustees’ use of the going concern basis of accounting<br />
in the preparation of the financial statements is not<br />
appropriate; or<br />
the Trustees have not disclosed in the financial statements<br />
any identified material uncertainties that may cast<br />
significant doubt about the group’s or the charitable<br />
company’s ability to continue to adopt the going concern<br />
basis of accounting for a period of at least twelve<br />
months from the date when the financial statements are<br />
authorised for issue.<br />
The Trustees are responsible for the other information. The<br />
other information comprises the information included in<br />
the annual report, other than the financial statements <strong>and</strong><br />
our auditor’s report thereon. Our opinion on the financial<br />
statements does not cover the other information <strong>and</strong>, except<br />
to the extent otherwise explicitly stated in our report, we do<br />
not express any form of assurance conclusion thereon.<br />
Other information<br />
In connection with our audit of the financial statements,<br />
our responsibility is to read the other information <strong>and</strong>, in<br />
doing so, consider whether the other information is materially<br />
inconsistent with the financial statements or our knowledge<br />
obtained in the audit or otherwise appears to be materially<br />
misstated. If we identify such material inconsistencies<br />
or apparent material misstatements, we are required to<br />
determine whether there is a material misstatement in the<br />
financial statements or a material misstatement of the other<br />
information. If, based on the work we have performed, we<br />
conclude that there is a material misstatement of this other<br />
information, we are required to report that fact.<br />
We have nothing to report in this regard.<br />
<br />
We were one of the first families to use the hospice when it opened<br />
in 2011 <strong>and</strong> our son actually laid the foundation stone when it was<br />
being built. It was quite life-changing for us to have somewhere we<br />
can trust 100 per cent with our special needs child.<br />
Page 42 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Opinions on other matters prescribed by the Companies<br />
Act 2006<br />
In our opinion based on the work undertaken in the course<br />
of our audit:<br />
the information given in the Trustees’ report, which<br />
includes the directors’ report <strong>and</strong> the strategic report<br />
prepared for the purposes of company law, for the financial<br />
year for which the financial statements are prepared are<br />
consistent with the financial statements; <strong>and</strong><br />
the strategic report <strong>and</strong> the directors’ report included<br />
within the Trustees’ report have been prepared in<br />
accordance with applicable legal requirements.<br />
Matters on which we are required to report by exception<br />
In light of the knowledge <strong>and</strong> underst<strong>and</strong>ing of the group<br />
<strong>and</strong> the charitable company <strong>and</strong> their environment obtained<br />
in the course of the audit, we have not identified material<br />
misstatements in the strategic report or the directors’ report<br />
included within the Trustees’ report.<br />
We have nothing to report in respect of the following matters<br />
in relation to which the Companies Act 2006 requires us to<br />
report to you if, in our opinion:<br />
the parent company has not kept adequate accounting<br />
records; or<br />
the parent company financial statements are not in<br />
agreement with the accounting records <strong>and</strong> returns; or<br />
certain disclosures of Trustees’ remuneration specified by<br />
law are not made; or<br />
we have not received all the information <strong>and</strong> explanations<br />
we require for our audit.<br />
Responsibilities of Trustees<br />
As explained more fully in the Trustees’ responsibilities<br />
statement, set out on page 19, the Trustees (who are also<br />
the Directors of the charitable company for the purposes<br />
of company law) are responsible for the preparation<br />
of the financial statements <strong>and</strong> for being satisfied that<br />
they give a true <strong>and</strong> fair view, <strong>and</strong> for such internal control<br />
as the Trustees determine is necessary to enable the<br />
preparation of financial statements that are free from<br />
material misstatement, whether due to fraud or error.<br />
In preparing the financial statements, the Trustees are<br />
responsible for assessing the group’s or the charitable<br />
company’s ability to continue as a going concern, disclosing,<br />
as applicable, matters related to going concern <strong>and</strong> using<br />
the going concern basis of accounting unless the Trustees<br />
either intend to liquidate the charitable company or to cease<br />
operations, or have no realistic alternative but to do so.<br />
Auditor’s responsibilities for the audit of the<br />
financial statements<br />
Our objectives are to obtain reasonable assurance about<br />
whether the financial statements as a whole are free<br />
from material misstatement, whether due to fraud or<br />
error, <strong>and</strong> to issue an auditor’s report that includes our<br />
opinion. Reasonable assurance is a high level of assurance,<br />
but is not a guarantee that an audit conducted in<br />
accordance with ISAs (UK) will always detect a material<br />
misstatement when it exists. Misstatements can arise from<br />
fraud or error <strong>and</strong> are considered material if, individually<br />
or in the aggregate, they could reasonably be expected<br />
to influence the economic decisions of users taken on the<br />
basis of these financial statements.<br />
A further description of our responsibilities for the audit<br />
of the financial statements is located on the<br />
<strong>Financial</strong> <strong>Report</strong>ing Council’s website at:<br />
www.frc.org.uk/auditorsresponsibilities<br />
This description forms part of our auditor’s report.<br />
Use of our report<br />
This report is made solely to the charitable company’s<br />
members, as a body, in accordance with Chapter 3 of<br />
Part 16 of the Companies Act 2006. Our audit work has<br />
been undertaken so that we might state to the charitable<br />
company’s members those matters we are required to<br />
state to them in an auditor’s report <strong>and</strong> for no other<br />
purpose. To the fullest extent permitted by law, we do<br />
not accept or assume responsibility to anyone other than<br />
the charitable company <strong>and</strong> the charitable company’s<br />
members as a body, for our audit work, for this report,<br />
or for the opinions we have formed.<br />
Guy Biggin<br />
Senior Statutory Auditor<br />
For <strong>and</strong> on behalf of U.K.<br />
LLP Statutory Auditor,<br />
Carrick House, Lypiatt Road, Cheltenham,<br />
Gloucestershire GL50 2QJ<br />
Date: 7 October 2020<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 43
Structure governance <strong>and</strong> management<br />
CHSW is a registered charity with the Charity Commission<br />
in Engl<strong>and</strong> <strong>and</strong> Wales (charity number 1003314) <strong>and</strong><br />
was incorporated as a private company limited by guarantee<br />
(company number 02620879), on 17 June 1991. Legal<br />
<strong>and</strong> company information is set out on page 47 <strong>and</strong> lists<br />
the Directors <strong>and</strong> Trustees, the SMT <strong>and</strong> the principal<br />
advisors <strong>and</strong> forms part of this report.<br />
Principal object of the charity<br />
The charity was established “to promote the relief of illness<br />
<strong>and</strong> suffering in such ways as the Association shall from<br />
time to time think fit, <strong>and</strong> in particular in the South Western<br />
counties of Engl<strong>and</strong> <strong>and</strong> adjacent areas <strong>and</strong> in particular:<br />
by establishing, maintaining <strong>and</strong> conducting residential<br />
nursing homes for the reception <strong>and</strong> care of<br />
young persons who are suffering from any chronic or<br />
terminal illness or from any other physical or mental<br />
infirmity, disability or disease <strong>and</strong> for the reception<br />
<strong>and</strong> care of the members of the family of such persons<br />
whether adult or otherwise, <strong>and</strong> so that any such home<br />
may be restricted to patients (<strong>and</strong> the families of<br />
patients) of under a certain age limit or to patients<br />
suffering from any particular types of illness, disability,<br />
disease or infirmity, <strong>and</strong> by providing medical or other<br />
treatment or attention for any such persons <strong>and</strong> their<br />
families as aforesaid in their own homes;<br />
by conducting or promoting or encouraging research into<br />
the care <strong>and</strong> treatment of persons suffering from any<br />
such illness, disability, disease or infirmity as aforesaid<br />
<strong>and</strong> particularly into the care <strong>and</strong> treatment of persons<br />
suffering from terminal illness <strong>and</strong> the care of the families<br />
of such persons <strong>and</strong> by providing for the dissemination<br />
of the results of such research;<br />
by promoting or encouraging or assisting in the<br />
teaching or training of Doctors, Nurses, Physiotherapists,<br />
Administrators, Social Workers, <strong>and</strong> other persons<br />
engaged in any branch of medicine, surgery, nursing<br />
or allied services, <strong>and</strong> in the teaching or training<br />
of students in any branch of medicine, surgery,<br />
nursing or allied services;<br />
by providing or assisting or encouraging the provision<br />
of spiritual help <strong>and</strong> guidance for any persons resident<br />
(either as patients or as families) or associated in any<br />
way with any such home or homes as aforesaid.”<br />
In pursuing the principal objectives of the organisation,<br />
activities that CHSW provides to the families in the South<br />
West are detailed on pages 8-9.<br />
Organisational structure<br />
The charity is constituted as a company limited by guarantee,<br />
<strong>and</strong>, therefore, is governed by a Memor<strong>and</strong>um <strong>and</strong> Articles of<br />
Association <strong>and</strong> has no share capital.<br />
The charity has a wholly owned subsidiary, C H S W Promotions<br />
Limited. The principal activity of the subsidiary is the sale of<br />
promotional <strong>and</strong> bought in goods in support of CHSW.<br />
The Directors of this subsidiary throughout the year, unless<br />
otherwise stated, are as follows:<br />
Nicola Mason, CHSW Trustee;<br />
Jessica Patel, CHSW Director of Marketing <strong>and</strong><br />
Communications;<br />
David Turner, CHSW Trustee;<br />
Jonathan Webber, CHSW Director of Finance.<br />
All Directors of CHSW, excluding the SMT, are also Trustees<br />
of the charity <strong>and</strong> there are no other Trustees. All the Trustees<br />
named on page 47 served throughout the year <strong>and</strong> until the<br />
date this report has been signed, unless otherwise stated.<br />
The charity is organised so that the Trustees meet collectively<br />
four times a year to direct the management of its affairs.<br />
Strategy days are also held periodically.<br />
The members of the charity may, by ordinary resolution,<br />
appoint persons who are willing to act to be Trustees.<br />
Assurance committees<br />
In addition to regular Board meetings, with the attendance<br />
of all Trustees <strong>and</strong> the SMT, delegated authority has been<br />
given to Assurance Committees to assist the Board in several<br />
functional <strong>and</strong> risk areas of the organisation. These Assurance<br />
Committees are attended by Trustees with relevant skills <strong>and</strong><br />
experience, meet at least three times per year <strong>and</strong> report<br />
<br />
We just can’t thank<br />
Children’s Hospice South<br />
West enough for everything<br />
they are doing for us -<br />
the care they provide is<br />
beyond special.<br />
Page 44 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
directly to the Board. They currently include:<br />
Care Assurance Committee;<br />
Fundraising <strong>and</strong> Marketing Assurance Committee;<br />
Finance, Investment <strong>and</strong> Trading Assurance Committee;<br />
Risk, Audit <strong>and</strong> Governance Committee;<br />
Remuneration Assurance Committee.<br />
Appointment of Trustees<br />
The Board is responsible for confirming the appointment of a<br />
new Trustee following a clear recruitment <strong>and</strong> selection policy<br />
<strong>and</strong> procedure. The term of office is three years after which<br />
period a Trustee must seek re-appointment by the Board if he or<br />
she wishes to continue as a Trustee. There is currently a threeterm<br />
maximum on number of terms of office a Trustee can have.<br />
CHSW will ensure it maintains <strong>and</strong> enhances its own<br />
accountability <strong>and</strong> wider public confidence in its work by:<br />
engaging effectively with the community it serves;<br />
responding equitably to the needs of its users;<br />
endeavouring to ensure a mix of Trustees that reflects the<br />
mix of CHSW beneficiaries <strong>and</strong> its local communities.<br />
New Trustees are offered a programme of induction which<br />
includes reading a certain amount of literature, meeting with<br />
some of those who lead the organisation, <strong>and</strong> gaining some<br />
first-h<strong>and</strong> experience of situations in which we work. The<br />
programme of induction contains the following elements:<br />
A document pack including:<br />
organisational structure chart;<br />
governing documents <strong>and</strong> governance policies;<br />
strategic plan;<br />
latest annual report;<br />
latest management accounts;<br />
risk register;<br />
annual meeting schedule.<br />
Meeting key personnel including the chair of Trustees<br />
<strong>and</strong> individual members of the SMT.<br />
Taking a tour of one of our hospices <strong>and</strong> meeting with<br />
the Head of Care.<br />
Attending a welcome day with other new staff.<br />
Spending time on a shift, working with the Care Team.<br />
Attending other key events such as a staff quarterly<br />
site meeting, fundraising events <strong>and</strong> a Friends Group<br />
conference.<br />
Management<br />
The day to day operation of the charity is carried out by<br />
SMT, listed on page 47, who have delegated responsibility<br />
<strong>and</strong> are employees of the charity.<br />
Care services throughout the charity are provided under<br />
the direction of the Director of Care, Allison Ryder.<br />
Fundraising staff work under the direction of the Director<br />
of Fundraising, Paul Courtney. The Director of Marketing<br />
<strong>and</strong> Communications, Jessica Patel, oversees marketing<br />
<strong>and</strong> communication issues together with IT services.<br />
The finance function is overseen by the Director of Finance,<br />
Jonathan Webber. Jonathan is also Company Secretary <strong>and</strong><br />
is responsible for the trading operations.<br />
The Director of HR, Daphne S<strong>and</strong>s, is also responsible for<br />
facilities management <strong>and</strong> health <strong>and</strong> safety.<br />
The above members of SMT report to the Chief<br />
Executive, Eddie Farwell, who oversees all operational<br />
<strong>and</strong> strategic matters.<br />
Senior Management Team remuneration<br />
SMT remuneration, including that of the Chief Executive,<br />
is reviewed annually by the Remuneration Assurance<br />
Committee. Senior management remuneration is established<br />
<strong>and</strong> reviewed periodically based on the Hay Group<br />
methodology in respect to job evaluation <strong>and</strong> also having due<br />
regard to CHSW’s duty to ensure best value <strong>and</strong> after taking<br />
advice on pay levels, market conditions <strong>and</strong> other relevant<br />
factors.<br />
Other than allowable expenses, CHSW makes no payments<br />
in addition to the basic salary to the Chief Executive <strong>and</strong> SMT<br />
for undertaking their core role. Any authorised additional<br />
hours will be subject to the conditions in line with all staff.<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 45
Structure, governance <strong>and</strong> management<br />
Employees<br />
CHSW is committed to the principle of equal opportunities<br />
in employment <strong>and</strong> recognises its obligations under the<br />
Equality Act 2010. CHSW declares its opposition to any<br />
form of less favourable treatment, whether through direct<br />
or indirect, associated or perceived discrimination accorded<br />
to employees or job applicants, on the grounds of their sex,<br />
race, ethnic origin, nationality, religion or belief, disability,<br />
age, marital/civil partnership status, gender reassignment or<br />
sexual orientation, pregnancy or maternity.<br />
CHSW is committed to creating a positive culture of respect<br />
for all employees, volunteers <strong>and</strong> families, to promote<br />
positive practice <strong>and</strong> to value the diversity of all individuals<br />
<strong>and</strong> communities.<br />
CHSW embraces <strong>and</strong> recognises the importance of diversity,<br />
that different people bring different perspectives, ideas,<br />
knowledge <strong>and</strong> culture, <strong>and</strong> that this difference brings<br />
great strength as well as contributing to employee wellbeing<br />
<strong>and</strong> engagement.<br />
Our aim is to create a culture that respects <strong>and</strong> values each<br />
person’s differences, that promotes dignity, equality <strong>and</strong><br />
diversity, <strong>and</strong> that encourages individuals to develop <strong>and</strong><br />
maximise their true potential.<br />
We expect commitment <strong>and</strong> involvement from all our<br />
employees, volunteers, partners <strong>and</strong> providers of goods <strong>and</strong><br />
services in working towards the achievement of our aim.<br />
Continued close attention is paid to the health <strong>and</strong> safety<br />
of employees while at work <strong>and</strong> all employees are provided<br />
with appropriate training, in compliance with the CHSW<br />
Health <strong>and</strong> Safety Policy.<br />
Employee views are sought through a number of forums<br />
including team meetings, steering groups <strong>and</strong> the Staff<br />
Council. Information concerning the charity <strong>and</strong> its activities<br />
<strong>and</strong> performance are shared with employees through<br />
several different mediums, including face to face meetings<br />
<strong>and</strong> through email <strong>and</strong> intranet platforms. These forms of<br />
communication are constantly being improved <strong>and</strong> developed.<br />
Memberships<br />
To assist in its decision making <strong>and</strong> to ensure current <strong>and</strong> best<br />
practice is always followed, the charity are active participants<br />
in the membership of several ‘not for profit’ organisations.<br />
These include the following:<br />
Charity Retail Association;<br />
Hospice Lottery Association.<br />
Related parties<br />
CHSW has a trading subsidiary C H S W Promotions<br />
Limited which is responsible for the sale of all new goods,<br />
including Christmas Cards. The relationship between the two<br />
organisations is set out in a memor<strong>and</strong>um of underst<strong>and</strong>ing.<br />
Charity governance code<br />
CHSW is a not for profit organisation which aims to follow<br />
charity sector best practice. The Trustees are integrating<br />
<strong>and</strong> embedding the updated version of the Charity<br />
Governance Code (the “Code”), published in July 2017, into<br />
all aspects of their roles. On an ongoing basis, the Trustees<br />
will undertake reviews of the Code <strong>and</strong> implement any<br />
consequential changes to CHSW’s governance <strong>and</strong> st<strong>and</strong>ards.<br />
Energy <strong>and</strong> carbon reporting<br />
In November 2019 CHSW engaged an independent firm<br />
of consultants to demonstrate compliance under the<br />
Energy Savings <strong>and</strong> Opportunities Scheme. This piece of<br />
work involved assessing the organisations current energy<br />
usage including business, transport, <strong>and</strong> process, <strong>and</strong><br />
suggesting energy efficiency opportunities. This requires<br />
compliance every 4 years.<br />
The outcome of the report assessed the organisation’s<br />
annual energy usage as 1,206,962 kWh which equates to<br />
341,654 CO2e over a 12-month period, ending 31 March<br />
2019. When assessed against the organisations Charitable<br />
spend of £9,306,380 this gives an intensity ratio of 1 Co2e:<br />
£27.24 charitable spend.<br />
The report suggested the top five energy efficiency<br />
opportunities which are currently being considered by the<br />
SMT <strong>and</strong> the Trustees.<br />
1 Rationalise HVAC setpoints - heating <strong>and</strong> cooling.<br />
2 Upgrade lighting to LEDS.<br />
3 Rationalise HVAC timings - match with occupancy.<br />
4 Behaviour change.<br />
5 Upgrade heating systems.<br />
H o s p i c e U K ;<br />
Together for Short Lives;<br />
Institute of Fundraising;<br />
Page 46 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Reference <strong>and</strong> administration<br />
Company Number 02620879<br />
Charity Number 1003314<br />
Directors <strong>and</strong> Trustees Dr Simon Langton-Hewer (resigned 16 July 2020)<br />
Stephen Hindley CBE, DL<br />
Gerry Sones (resigned 16 July 2020)<br />
David Turner<br />
Karen Rogers<br />
Beverley Horler (resigned 13 November 2019)<br />
Damian Whittard (resigned 28 November 2019)<br />
Nicola Mason<br />
Patricia Morris<br />
Elizabeth Redfern CBE (resigned 11 November 2019)<br />
Alan Broughton<br />
Roger Knight<br />
Elizabeth Childs (appointed 18 July 2019)<br />
Kate Martin (appointed 18 July 2019)<br />
Secretary<br />
Registered Office<br />
Jonathan Webber<br />
Little Bridge House, Redl<strong>and</strong>s Road, Fremington,<br />
Barnstaple, Devon EX31 2PZ<br />
Senior Management Team<br />
Chief Executive (CEO)<br />
Director of Care<br />
Director of Finance<br />
Director of HR<br />
Director of Fundraising<br />
Director of Marketing <strong>and</strong> Communications<br />
Eddie Farwell MBE, Hon LLD<br />
Allison Ryder<br />
Jonathan Webber<br />
Daphne S<strong>and</strong>s<br />
Paul Coutney<br />
Jessica Patel<br />
Advisors<br />
Principal Bankers<br />
Principal Solicitors<br />
Investment Managers<br />
Barclays Bank Plc 3rd Floor, 3 Bedford Street,<br />
Exeter EX1 1LX<br />
Burges Salmon LLP 1 Glass Wharf, Bristol BS2 0ZX<br />
Cazenove Capital Management Limited<br />
1 London Wall Place, London EC2Y 5AU<br />
Sarasin & Partners LLP<br />
Juxon House, 100 St Paul’s Churchyard,<br />
London EC4M 8BU<br />
Independent Auditor<br />
Crowe U.K. LLP Carrick House, Lypiatt Road,<br />
Cheltenham, Gloucestershire GL50 2Q<br />
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 47
Our fundraising st<strong>and</strong>ards<br />
Committed to the highest st<strong>and</strong>ards<br />
CHSW is committed to ensuring all of our fundraising<br />
activities are safe, respectful, transparent <strong>and</strong> accountable.<br />
We are registered with the Fundraising Regulator <strong>and</strong><br />
through consistent training <strong>and</strong> monitoring, benchmark all<br />
of our activities against the Code of Fundraising Practice.<br />
Many of our fundraising team are individual members of the<br />
Institute of Fundraising, enabling them to keep up to date<br />
with best practice <strong>and</strong> developing industry guidelines.<br />
These high st<strong>and</strong>ards of fundraising that we expect of<br />
our in house teams also extend to those acting on behalf<br />
of CHSW. Volunteers receive extensive training to ensure<br />
they are up to date with regulatory changes <strong>and</strong> any<br />
agencies or commercial participators that represent the<br />
CHSW br<strong>and</strong> have to demonstrate their commitment<br />
st<strong>and</strong>ards before work commences.<br />
In the year 2019/20, CHSW did not engage with any<br />
external fundraising agencies. During the year there were<br />
a number of Cause Related Marketing (CRM) agreements<br />
with companies partnering with us to raise funds.<br />
These agreements were reviewed regularly to ensure<br />
companies carrying the CHSW logo acted in line with<br />
the st<strong>and</strong>ard expected at all times.<br />
Whilst we are committed to these very high st<strong>and</strong>ards, they<br />
are times when we do receive concerns or complaints. In the<br />
last year six people contacted us to raise a concern about our<br />
fundraising <strong>and</strong> marketing activities <strong>and</strong> we received four<br />
complaints (2019: eight). These were all reviewed <strong>and</strong> resolved<br />
in line with the charity’s complaints policies <strong>and</strong> no further<br />
escalation or involvement of external regulators was required.<br />
In the last year we have undertaken refresher training across<br />
the Fundraising <strong>and</strong> Marketing departments at CHSW to<br />
ensure that everyone is aware of the Fundraising Regulator’s<br />
revised <strong>and</strong> updated guidance. Particular attention was given<br />
in this training to ensuring all staff understood the importance<br />
of respecting the privacy of supporters (especially those<br />
who may be classified as vulnerable). All staff are committed<br />
to behaviour that ensures no potential or existing supporter<br />
feels under any undue pressure to help CHSW.<br />
Page 48 Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020
Children’s Hospice South West - <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Financial</strong> <strong>Statements</strong> for the year ended 31 March 2020<br />
Page 49
www.chsw.org.uk<br />
enquiries@chsw.org.uk<br />
Redl<strong>and</strong>s Road, Fremington, Barnstaple, Devon EX31 2PZ<br />
01271 325 270<br />
Charlton Drive, Wraxall, North Somerset BS48 1PE<br />
01275 866 600<br />
Porthpean Road, Porthpean, St Austell, Cornwall PL26 6AZ<br />
01726 871 800