wakefield (a company limited guarantee) subsidiary undertaking

Wakefield Hospice(A Company Limited by Guarantee)

and its Subsidiary Undertaking

Company Number 02038416Registered Charity Number 518392

Trustees Annual Report, Strategic Reportand Financial Statements

Year ended 31 March 2018

Waketield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking

Trustees Annual Report, Strategic Report and Financial StatementsYear ended 31 March 2018

Contents

Page No

Company Information

Report by the Trustees

Report of the Auditors

Consolidated Statement of Financial Activities

Consolidated Balance Sheet

Parent Company Balance Sheet

Consolidated Cash Flow Statement

Notes to the Consolidated Financial Statements

17

18

19

20

21

The following pages do not form part of the statutory accounts

Detailed Incorue and Expenditure Account

Wakefield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking

Year ended 31 March 2018

Reference and Administrative Information

Company Number

Registered Charity Number

Registered Office

02038416

518392

Aberford RoadWakefieldWest YorkshireWF1 4TS

Directors and Trustees T E Elms

J E Firth (Resigned 27 November 2017)G MortimerA P HowatsonD J MartindaleG W Cattell

J E SeniorNF Esmond (Appointed 27 November 2017)DJ Barker (Appointed 27 November 2017)D J Lumb (Appointed 27 November 2017)D Melia (Appointed 27 November 2017)M D Ashton (Appointed 26 March 2018)N Gunson (Appointed 26 March 2018, resigned 17August, 2018)

Secretary R M Hardill

Chairman G Mortimer

Treasurer

Senior Management

G Mortimer (Resigned 27 November, 2017)D J Barker (Appointed 27 November, 2017)

T R Turner —Chief executiveDr A M Seymour- Medical DirectorH M Knowles —Director of Fundraising and Retail

OperationsR M Hardill —Director of FinanceA M Harwood - Du'ector of Clinical Services

Auditors Jolliffe Cork LLP33 George StreetWakefieldWF1 1LX

Bankers Royal Bank of Scotland PicPO Box 4862SheffieldS2 9EQ

Waken''ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking

Report by the Trustees for the year ended 31 March 2018

Chairman's Report

Dear friends and supporters of the hospice,I am delighted to be introducing this year's Annual Report on behalf of my Trustee colleagues, and to

be able to assure you that, once again this year, the hospice has risen to the challenges facing all ourhealthcare organisations.

My own relationship with the hospice has grown over many years, and I consider it a privilege towork with so many skilled and committed people, both those who are employed by the hospice, and

those who give freely of their time and energy,

The Board are encouraged to hear so many stories of patients, and their families and loved ones,

being cared for with compassion in the warm and uplifting environment of the hospice.This year has seen a number of very significant environmental upgrades to the building, including the

refurbishment of the in-patient unit which was almost exclusively funded by the generosity ofWakefield District Housing and Dulux, who provided labour and materials either free of charge or at

very reduced costs. These environmental improvements have directly supported patient experience,

and will help us to secure the latest CQC review of 'outstanding' in patient care.

2017/18 has been a year of considerable change in respect of our retail operations, with new

developments for the warehouse and for the shops, all of which are supporting our essential income

stream in respect of services for those approaching end of life. We recognise and acknowledge an

increasing reliance on the charitable contribution to our funding, in the context of a real terms

reducffon in our statutory funding via the NHS, we have never needed your help more than we donow.

More and more, we are indebted to those of you in our local community who support us throughout

the year, in your generous and unfailing donations, in your support of our shops and our events, and

in your consistent voluntary efforts in absolutely all areas of hospice life. We strive to recognise and

appreciate every one of you, those who are new to the hospice world, and those who have been

supporting us for over thirty five yearsI

This year's AGM was a rather high profile affair, with terrific support from the health and social care

community, and which provided an ideal opportunity to recognise and celebrate the many

achievements of our hard working teams; our grateful thanks go to all the staff and volunteers whose

efforts and endeavours, often above and beyond 'the call of duty', are very much appreciated. In

addition, we noted with gratitude and with affection, the long term commitment and contribution of

our colleague Jan Firth on her retirement from the Board after 13 years,

We have been fortunate to attract the support of a number of new trustee colleagues who were all

formally appointed to the Board after a period of introduction.

Our strategic intention over the coming years has been articulated in our revised Mission, Vision, and

Values statement and in the new tluee-year plan which is to be found in the main body of this report,

We would not be able to achieve any of these intentions without the constant and unwavering

support of our local community, If we are to maintain our priceless reputation for quality and

compassion, and deliver our services into and after our thirtieth anniversary year, we must face the

future with confidence, and in explicit partnership with others: it is in working together that we will

successfully build a service for the people of Wakefield when they most need us,

Gmy MortimerChair of Trustees,



Trustees ReportThe Trustees present their Annual Report, including the Strategic Report, together with the audited

consolidated financial statements of the Charity and its subsidiary for the year ended 31 March 2018.

The reference and administrative information set out on page 1 forms part of this report,

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Articles of

Association, and Accountmg and Reporting by Charities: Statement of Recommended Practice

applicable to charities preparing their accounts in accordance with the Financial Reporting Standard

applicable in the LK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Structure, governance and management

The Company is limited by guarantee and is governed by its Articles of Association. It is a Registered

Charity, number 518392. Wakefield Hospice Trading Limited is a wholly owned subsidiary.

The Memorandum and Articles of Association were updated on 28 January 2013 to reflect the

changing environment in which the Charity operates and were merged into a new set of Articles of

Association,

The Directors of the Company are listed on page 1 and are known as the Board of Trustees. Trustees

offering themselves for election or re-election are appointed by the serving trustees.

Trustees are appointed for an initial term of one year and may serve for two further full terms of three

years each, a maximum of seven years. At the end of their initial term or first three year term trustees

may seek re-election.

It has been agreed that an amendment to the Articles of Association should be made to the following

effect. Trustees who complete their term of office, and for whom exceptional circumstances apply,

may be asked by the Chairman to extend their term for a period of one year, and subject to review, for

a further period of one year if the Chair requests it.

If there are exceptional circumstances relating to the imminent retirement of the Chair, then a request

to extend their term may be made by the Vice Chair with the backing of the Board. The Chair may be

asked to extend their term for a period of one year and, subject to review, for a further period of one

year if requested,

Exceptional circumstances may possibly, though not exclusively, relate to the specific (and hard to

recruit) skill or experience of a trustee, a particularly challenging position for one or more hospice

departments, or for example, unusual turbulence in membership,

T E Elms and G Mortimer have served two full terms and are due to retire at the 20I8 Annual General

Meeting. N F Esmond, D J Barker, D J Lumb and D Melia have completed an initial term and are

eligible for re-election.

When a vacancy arises on the Board of Trustees or when additional specific knowledge is required to

supplement the expertise on the Board information is distributed throughout the relevant local

business/healthcare community and the post may be advertised in the local press and on the website.

Candidates complete an application form and, if considered suitable, are interviewed by the

Chairman and at least one other Trustee. If a suitable candidate is chosen, that person will attend at

least one Board meeting and one relevant sub-committee meeting in order to establish that there is

mutual interest and suitability prior to them being offered election to the Board.



Structure, governance and management (cont)

New Trustees receive an induction pack providing guidance for Board members and attend induction

meetings at the Hospice with relevant staff in order to gain an understanding of the activities of the

Charity. Trustees are invited to training days at the Hospice and external training where appropriate.

All Trustees are required to sign a Declaration of Eligibility for appointment and a Declaration of

Interests. They are also required to follow a Hospice Code of Conduct for Trustees.

During the financial year the Board of Trustees and the Board of Directors of Wakefield Hospice

Trading Limited each met on 6 occasions.

Trustees are members of one or more coromittee depending upon their interest and expertise, the

Chair of trustees may attend any sub-committee.Clinical Governance and Quality met on 5 occasions and the members were J E Senior, J E Firth, A P

Howatson, G W Cattell, D Melia and N F Esmond.

The Finance, Estates and Resources Committee met on 6 occasions and the members were J E Firth, T

E Elms, D J Martindale, D J Barker, D J Lumb, M D Ashton and N Gunson,

Income Generation and Marketing met on 4 occasions and the members were T E Elms, G W Cattell,

D J Martindale and D j Barker,

The day-to-day operation of the service is the responsibility of the Hospice Senior Leadership Team

which reports to the Board of Trustees,

The Trustees and Senior Leadership Team continue to review the future direction of the Hospice.

From these discussions emerge the objectives to be achieved.

The pay of the Senior Leadership Team is in accordance with NHS Agenda for Change Pay Scales.

Standards are set in all areas of the Hospice and, along with the aims as set out in the business plan,

are monitored internally by staff using set down appraisal methods and, where appropriate, with

reference to the Trustees.

Within the trading subsidiary a Board of Directors, the majority of which are also Trustees of the

Hospice, report on the activities of the trading company to other Trustees at Board meetings.

There are 8 Fundraising Groups supporting the Hospice in the community. These groups operate

independently but with the support of the Hospice Fundraising Department to raise funds by means

of social activities.

Objectives and activities

Objectives

The primaiy charitable object of Wakefield Hospice, as set out in the Articles of Association, is to

promote the relief of sickness and the welfare of the terminally ill in the area of Wakefield and

District,

The Mission, Vision, and Values for the Hospice were recently reviewed and continue to articulate the

ethos and direction of the organisation as follows;



Objectives (cont)

Mission:Wakefield Hospice, your local charity, providing expert care and support for local people and

families living with life-luruting conditions,We acknowledge the value of life and the importance of dignity in death: we endorse a holistic

approach in promoting quality of life for patients as well as providing the highest quality Palliative

and End of Life Care.

Vision.For the needs of people living with life-limiting illness, and those close to them, to be met with skill,

compassion and care,

Values:Professional, delivering high standards through team work from a well-trained workforce supported

by good governance.

Caring, treating each person with respect, empathy and kindness,

Ambitious, continually learning, developing and delivering excellence in all that we do,

These values underpin all that our charity aspires to and shape our external and internal behaviour.

Long term objectives have been approved and agreed as follows:

~ To provide high quality end of life care, giving equal consideration to the physical, emotional

and spiritual needs of patients, their families and carers;~ To offer care that is free of charge to patients who have been assessed as in need of specialist

palliative care;~ To foster independence for patients tluough the provision of appropriate rehabilitation services

and skilled multi-disciplinary team work;~ To support the continued professional development of all staff and contribute locally to

specialist palliative care and end of life care education through participation in, or delivery of,

specialist training and education;~ To promote a deeper understanding of Hospice care within the Wakefield and district

communities;~ To ensure judicious management of charitable funds in providing a quality, cost effective

service;~ To commit to working within national and local guidelines and frameworks for specialist and

end of life care services.

In continuation of this work, and on the basis of our consultation and collaborative statements above,

a three year strategic plan has been agreed, and will form the foundation of our future short and

medium term efforts.

Activities

Wakefield Hospice supports those in the local community with advanced, progressive and terminal

conditions: it also offers support to those who love and care for them, and for those who have been

recently bereaved,



Activities (cont)

We do all we can to recognise and respect the individual needs and preferences of our patients and to

provide compassionate and skilful care so as to meet those needs. We work hard to maintain a calm

and uplifting environment where people feel welcomed and supported to manage their daily

experience of illness and difficulty: we strive constantly to ensure that our service is based on up to

date research and understanding and on a sound value base.

This year we have seen stability in our activity and a real-terms reduction in statutory funding,

despite this we have made every effort and endeavour to maintain the standards of provision which

were associated with our last 'outstanding' care rating from the CQC m 2014.

More recently we have been working on a new arrangement to support the pharmacy requirements of

the service, to improve and extend our access to specialist support and to ensure the safe and eflective

transition of purchasing arrangements for stock medicines,

We have continued to work in partnership to maintain and expand our contribution to the End of Life

Care ( EoLC) education requirements in the locality, and look forward to further strategic plans

coming to fruition through our EoLC Project work.

In terms of charitable incorae we have continued to raise approximately three quarters of our

outgoings, working on the basis of our strategic SWOT analysis and risk assessments and in the

context of a changing and volatile environment for fundraisers. We recognise the value of an

unimpeachable reputation, a sound and loyal donor base, and a consistently high legacy contribution,

but also the unpredictability of these in the face of today's financial climate,

Our retail outlets are well-known for the quality and diversity of their goods, and for the excellent

service and merchandising standards. It has been a challenging year for the shops, with pressure on

high street outlets to maintain relevance and profit margins. A range of new initiatives and constant

attention to detail have been reflected in a positive and improving retail income and the

implementation of a strategic plan in response to changing footfall and shopping preferences.

The fundraising team continue to develop new challenges and fundraising events in addition to

seeking funding from grants and charitable trusts, They were successful in attracting funding from

local business to support the refurbishment of the inpatient unit and from HSBC to support the

redevelopment of the gardens, Both initiatives contribute to the improved experience of patients,

visitors, volunteers and staff and our glorious new gardens provide opportunity for unproved

fundraising activities for years to come.

Over the last year there have been many organisations who have supported our work through

financial donations as well as sponsoring our events and campaigns, We would like to acknowledge

and thank them for their generous contributions.

Wakefield Hospice aims to generate funds in a cost effective and ethical manner, allowing the hospice

to continue to raise funds to provide specialist palliative care for patients. We are committed to the

highest standards of practice and that all our fundraising activities are legal, open, honest and

respectful.

Wakefield Hospice is registered with the Fundraising Regulator and adheres to the standards for

fundraising set out in the Code of Fundraising Practice and the I'undraising Promise.

General Data Protection Regulations —we are currently updating our systems to ensure we comply

with changes to the General Data Protection Regulations (GDPR) which came into effect from May

2018.



Achievements and Perfonnance (cont)

Hospice staff, volunteers and service users have been engaged with the development of a three

year strategic plan to ensure the sustainability of the organisation in changing and challenging

times. Our commitment has been to align this plan with the local and regional Sustainable and

Transformation Partnerships (STP) planning process, and to retain and increase our influence in this

regard, Indeed, End of Life Care (EoLC) plarmtng, led by the hospice to a large degree, has been

recognised and commended, and used as a model for the development of other local cross-agency

services. The EoLC Case for Change, which recommends a formal contractual alliance between all

local EoLC providers, was approved in March 2018 by the Clinical Commissioning Group (CCG)Governing body and this will determine the work programme for the next two years.

The Information Governance (IG) toolkit was completed successfully for Wakefield Hospice, and

there have been significant developments in electronic information sharing, including a formal

agreement with hub partners, which facilitates the use of Systml and future engagement with the

emerging Patient Information Care (PIC) file.

Our strategic plan recognised the need for an increased range and diversity of income

generation opportunities, including more and different community evenS, a huge retail

development with a new outlet in George Street, and relocation of the warehouse involving massive

efforts from staff and volunteers, and resulting in improved opening hours, an extended range of

products and substantial savings on property costs.

A new and exciting collaborative initiative with HM Prisons New Hall and Wakefield has

resulted in the development of an additional shop facility and upcyclmg scheme wluch contribute

to income for the hospice whilst improving the mental well-being and rehabilitation opportunities

for residents, This bold new development has presented opportunities for a national roll-out of the

scheme in future years, and will feature in our plans for improved income generation and public

awareness raising,

During the year our single biggest event has been the 22nd Annual Hospice 10k run, raising

almost 680k with fantastic support from the local community, and now arranged with an interesting

'10k-a-day-in-May' spin as an additional fundraising and awareness event,

Our 2017 on-line Bed-Appeal arose from a recognition that our bed stock was ageing and

proving not just expensive but almost impossible to sustain in terms of maintenance and repair. A

massively successful appeal raised the required funds, and led to positive and successful

relationships with Wakefield District Housing and Penny Appeal, an international Muslim charity

which is based in Wakefield.

Volunteering continues to be a major source of support for the hospice, and we undertook to

extend our volunteer roles, to focus specifically on reaching out to younger volunteers, and to

unprove training and support for all our volunteers, some of whom have been recognised for a

contribution spanning over 35 years. This new drive has seen success in terms of our engagement

with corporate business partners, college students, and further engagement with local schools,

Education in terms of Special Palliative Care also continues to be a focus of our efforts, and

there has been sustained improvement in tenne of our engagement with other local partners to

extend and develop training opportunities for staff in a wide range of organisations, especially in

terms of advanced communication skills where we have been able to offer a nationally accredited

trainer.

This emphasis on extending educational opportunities has been lived-out in house in terms of a

comprehensive programme for hospice staff during the weeks early in 2018 when the inpatient unit

was closed to admissions to facilitate the refurbishment work,

Other initiatives in terms of clinical services have included the Look Good Feel Better groups,

the introduction of Palliative Care outcome tools, extended patient-feedback arrangements, and

plans to develop our bereavement services with the successful appointment of a new Bereavement

Counsellor,



Achievements and Performance (cont)

The successful Admiral Nurse initiative in collaboration with Dementia UK continues to focus

on the EoLC needs of local people with dementia and their carers,

With a new emphasis on collaboration across agencies, and the development of the formal

Alliance, we also acknowledge the value and significance of the 7-day admissions services and the

24 hour helpline, which despite further decreases to statutory funding have seen an increase in

activity this year.

In terms of support services, we have been aware of the need to develop and implement an

action plan in response to the changing requirement of the GDPR, and have used our relationship

with Information Technology specialists, and the opportunity to employ a consultancy based

response and to prepare for the new IG Toolkit.

Acknowledging that the most significant risk to the hospice lies in terms of its financial

sustainability, a formal review of financial processes and systems was commenced, and has led to a

useful modelling of the financial position over the following three years. The intention is to use this

intelligence to undertake a review of all clinical services, and to redesign them in line with the

changing needs of the community and the anticipated financial challenge,

Financial Review

Income for the year was 63,986,524 which is an increase of 6188,732 on the f3,797,792 received in

2016/17,

An overall increase of 677,812 in donations and legacies is attributable to modest increases in

donations, gifts and legacies and an increase f34,975 in trust income reflecting a successful year in

trust fundraising.

Income from other trading activities has increased by EI04,291 mainly owing to increased fundraising

activity as a result of 2 Wakefield 10K events falling in the same year.

Incoming resources from Charitable Activities has mcreased by &1,818 despite a further. decrease of

813,486 of the grant for 24/7 Admissions,

Regular Investment Income has reduced by 85,189 following the realisation of investments to support

cash flow.

Expenditure for the year was 64,266,591 an increase of 6119,685 partly attributable to additional

fundraising events and the effect of the inclusion of retail stock in 2016/17.

The net deficit from operational activities for the year amounted to 6280,067 against a deficit of

6349,114 in 2016/17 an improvement of f. 69,047.

Reaiised and unrealised gains on investments increased by C102,116 to a gain of 6219,455 in 2017/18.

The net movement in funds for the year of 660,612 is a decrease in the deficit by 6171,163 on the net

movement in funds of f231,775 for 2016/17.

The overall financial positon is an improvement on 2016/17 and reflects the efforts of all staff to

increase income and keep costs to a muumum.



Financial Review (cont)

Wakefield Hospice Trading Limited

The Trading Company deals with the sale of new goods and all profits are donated to Wakefield

Hospice, The gift aid donation from the trading subsidiary to the Hospice has seen a small reduction

in profits of 6436 to Q.8,190.

Reserves

Wakefield Hospice is a charitable organisation which provides health care services which are free of

charge at the point of delivery, The funding of the service relies largely upon public donations and a

smaller grant from statutory sources. Due to unpredictable income sources it is vibaI that reserve

funds are retained, the level of which can be explained and justified by reference to a Reserves Policy,

During the year the Trtrstees undertook an in depth review of the reserves policy in conjunction with

financial forecasting and investments,

In reviewing the policy the Trustees took into account a number of factors;

Income — having reviewed the risks associated with each income source the following risks were

noted:~ Statutory funding may cease or substantially reduce~ Legacy income fluctuates year on year~ Retail and fundraising operations may operate at reduced levels

~ Inflationary pressures and the consequent loss of the real term value of income

Expenditure —the following assumptions have been made in determining the minimum expenditure

required to maintain the same level of service in the In Patient Unit and Day Therapy Unit

~ A minimum of six months budgeted clinical costs after anticipated savings is required

~ Fundraising and Retail expenditure would be covered by the respective income

~ Ongoing commitments such as leases and contracts would be met

~ Essential capital or development work would be factored into the budgets

Having considered the above factors it is agreed that a contingency reserve should be retained of:

~ Six months budgeted running costs, excluding fundraising and retail

~ Cost of lease commitments up to date of respective break clause

~ Known capital or contractual commitments

The policy will continue to be reviewed annually.

The total reserves of the charity at 31 March 2018 amounted to f5,971,390 of which 63,181,413

represents Free Reserves. This value of the Free Reserves has been discounted to f3,049,943 to eke

into account the potential effect of selling the rental properties not currently on the market at short

notice. The discounted Free Reserves are sufficient to cover the required reserves of Q.,664,647. The

trustees accept a +/- 10'/o tolerance level and following the revision of the Reserves Policy the current

level of reserves exceed this by E1,218,83L Any excess will be under constant review,



Investments (cont)

The Investment Policy has also been reviewed in depth in conjunction with the Reserves Policy and

financial forecasting

The Investment objective of Wakefield Hospice is to produce the best financial return from the

Reserves, within an acceptable level of risk.

Funds which can be invested equate to the value stated in the current reserves policy, that being six

months budgeted running costs, excluding fundraising and retail, future lease commitments and

known capital or contractual commitments.

The spread of investments should take into account the liquidity requirements of the charity and the

trustees have agreed to retain cash within the reserves sufficient to cover the greater of:~ The amount to cover any projected deficit over the next two years~ The sum of 6150,000

Subject to the above at least 50 70 of investments should be realisable within three months.

To re-balance the current investment spread the trustees have agreed to sell Investment Properties up

to the value of 6750,000. In anticipation of these sales six properties were revalued at 31 March 2018

for sale purposes and the revised values reflected in the accounts.

Trustees provide guidelines to their appointed agents on areas where investments should not be

made, No investment will be made in any company that derives its mcome from tobacco or tobacco

related products and the Portfolio is reviewed quarterly to exclude any such stocks.

The investment manager must demonstrate that there is a spread of investments included in their

portfolio. Tnrstees monitor investments on at least a quarterly basis and require a quarterly report

from the investment manager, an annual presentation of the portfolio to which all Trustees are invited

and regular meetings with the investment manager to ensure clear understanding of future intentions

and forecasts.

Trustees require a quarterly report from the property agent and an armual presentation. The

investment properties are revalued every three years,

Plans for future periods

The development of a new strategic plan, captured in the matrix below, has focussed the attention of

ourselves and our stakeholders, and resulted in the following specific intentions:

Further and more formal development of our partnership working —including with the New

Models of Care (NMOC) Board, the Connecting I lealth and Social Care Partnership Board

(CHSCPB), the formal Alliance Project Board, and with colleagues at the local Prince of Wales

Hospice.

Construction of a more explicit and comprehensive Communication strategy, to support

improved internal and external communications, especially relating to the significant change

agenda which will be the context of our work over the next two years.

An explicit intention to work towards supporting improvements in EoLC in the wider

community eg in the Care Homes sector

An acknowledgement that clinical services must be reviewed and redesigned in the context of

changing needs and challenging funding.

The developmeni. of a sustained and extended service to those living with dementia.

A completion of the arrangements to transfer responsibility for improved pharmacy services.

10



Plans for future periods (cont)

A continuation of and increased use of Outcome measures, and the development and early

implementation of our service-user engagement strategy

I'urther consolidation and development of retail operations, including at thc Ridings, with E-

Bay, and with Penny Appeal,

Further and more ambitious development in terms of environmental improvements including

in the gardens, in the reception area, and in terms of access arrangements to the hospice site,

Use of consultant to review Information Technology needs, produce action plan and implement

those actions requiring technical expertise.

Completion of the review of financial systems and processes.

Development and early implementation of the preparation programme for Hospice 30th

Anniversary celebrations during 2020

To build on the foundation of almost thirty years of expertise and learning: collaborate with others

to sustain and develop the Wakefield Hospice contribuffon to the care and support of our community.

Ensure the sustainability of service Maximise impact and value Work in partnership and

provision - future planning to through quality and efficiency - achieve even more - to deliver

continue the mission, to drive the ambition. the vision,

Build a safe and effectiveorganisation on the basis of soundgovernance principles.

Maxhnise the potential of an agreedand extended and diverse range ofIncome Generation inifiatives.

Develop and deliver high qualityand equitable services to meetthe EoLC needs of our localcommunity,

Foster a VFM culture whereresource efficiency andeffectiveness is valued andencouraged,

Build and implement a service-user strategy appropriate for the

EoLC arena, and which respectsand reflects the hospice values.

Review and extend ourVolunteer Services strategy tomaximise the potential ofvoluntary contribution across the

service.

Construct and implement a

comprehensive Communications

Strategy to raise the profile of the

Hospice and increase influence in

the wider Health and Social Carecommunity,

Develop a high performingworkforce, operating in a culture oiengagement and innovation,

Ensure the provision of a

physical environmentappropriate for a modern careand business environment.

Develop the IT infrastrucbu'eand management systems tofurther support the hospicefunctioning.

Engage fully with ourcommissioning colleagues,undersmnding and exceedingtheir expectations,

Build relationships with otherservice-providers, influencingthe development of the local and

regional services,

Develop and extend the reach of the

hospice education services,maximising in-house impact andexternal hrfluence,

Review and refresh the

framework of hospice supportservices in terms of function,structure, and delivery.

Engage productively with youngpeople, offering education and

experience, and benefitting fromtheir contribution bothpractically and notionally.

11



Risk Management

A structured assessment of the strategic risks facing the hospice identified three key areas, financialsustainability, clinical risk, and reputation. Measures are in place as part of the ongoing operationalsystems and processes to manage and mitigate risks in all three areas, and the clear identification ofthe financial risk as the most significant challenge for the hospice at this time resulted in the six pointaction plans referred to above,

Trustees responsibilities for the financial statementsThe Trustees (who are also directors of Wakefield Hospice) are responsible for preparing the Trustees'

Annual Report, Strategic Report and the financial statements in accordance with applicable law and

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give

a true and fair view of the state of affairs of the charitable company and the group, and of the

incoming resources and application of resources, including income and expenditure of the charitable

group for that period. In preparing those financial statements the Trustees are required to;

~ select suitable accounting policies and apply them consistently;

~ observe the methods and principles in the Charities SORP,

~ make judgements and estimates that are reasonable and prudent;

~ state whether applicable UK Accounting Standards have been followed, subject to any

departures disclosed and explained in the financial statements, and

~ prepare the financial statements on the going concern basis unless it is inappropriate to

presume that the charitable company will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable

accuracy at any time the financial position of the charitable company and enable them to ensure that

the financial statements comply with the Companies Act 2006, They are also responsible for

safeguarding the assets of the charitable company and the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial

information included on the charitable company's website. Legislation in the United Kingdom

governing the preparation and dissemination of financial statements may differ from legislation in

other jurisdictions.

Statement as to disclosure of information to auditors

In so far as the Trustees are aware at the time of approving our Trustees' Annual Report:

~ there is no relevant information, being information needed by the auditor in connection with

preparing their report, of which the group's auditor is unaware, and

~ the Trustees, having made enquiries of fellow hustees and the group's auditor that they

ought to have individually taken, have each taken all steps that he/she is obliged to take as a

trustee in order to malce themselves aware of any relevant audit information and to establish

that the auditor is aware of that information.

12


Report by the Tr'ustees for the year ended 31 March 2018

Auditors

The Auditors, Jolliffe Cork LLP, will be proposed for re-appointment at the forthcoming Annual

General Meefing.

On behalf of the Board;

G CattellTrusteeWakefield HospiceAberford RoadWakef ieldWF1 4TS

Dated; 29 October 2018

13


Independent Auditors' Report to the Members and Trustees of Wakefield Hospice

Opinion

We have audited the financial statements of Wakefield Hospice (the 'charitable parent company') and

its subsidiary undertaking (the 'group') for the year ended 31 March 2018 which comprise theconsolidated statement of financial activities, consolidated balance sheet, company balance sheet,

consolidated cash flow statement and notes to the financial statements, including a summary ofsignificant accounting policies. The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards, including Financial

Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic ofIreland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

~ give a true and fair view of the state of the group's and charitable parent company's affairs as

at 31 March 2018, and of the group's incoming resources and application of resources,including its income and expenditure, for the year then ended;

~ have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice; and

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))and applicable law. Our responsibilities under those standards are further described in the Auditor's

responsibilities for the audit of the financial statements section of our report, We are independent ofthe group and charitable parent company in accordance with the ethical requirements that are

relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and

we have fulfllled our other ethical responsibilities in accordance with these requirements. We believe

that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

Condusions relating to going concern

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

~ the trustees' use of the going concern basis of accounting in the preparation of the financial

statements is not appropriate; or~ the trustees have not disclosed in the financial statements any identified material uncertainties

that may cast signtflcant doubt about the group's or charitable parent company's ability tocontinue to adopt the going concern basis of accounting for a period of at least twelve months

from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the

information included in the trustees' annual report, other than the financial statements and ourauditor's report thereon. Our opinion on the financial statements does not cover the other information

and, except to the extent otherwise explicitly stated in our report, we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with

14



Other information (cont)

the financial statements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated. If we identify such material inconsistencies or apparent material misstatements, we arerequired to determine whether there is a material misstatement in the financial statements or amaterial misstatement of the other information. If, based on the work we have performed, weconclude that there is a material misstatement of this other information, we are required to report thatfact.We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

~ the irdormation given in the trustees' report (incorporating the strategic report) for the financialyear for which the financial statements are prepared is consistent with the financial statements;and

~ the trustees' report (incorporating the strategic report) has been prepared in accordance withapplicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the charitable parent company andits environment obtained in the course of the audit, we have not identified material misstatements inthe trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act2006 requires us to report to you if, in our opinion:

~ the group or charitable parent company have not kept adequate accounting records, or returnsadequate for our audit have not been received from branches not visited by us; or

~ the charitable parent company financial statements are not in agreement with the accountingrecords and returns; or

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

~ we have not received all the information and explanations we require for our audit; or

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement set out on page 12, the trustees(who are also the directors of the charitable company for the purposes of company law) areresponsible for the preparation of the financial statements and for being satisfied that they give a trueand fair view, and for such internal control as the trustees determine is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud orerror.

In preparing the financial statements, the trustees are responsible for assessing the group's and thecharitable parent companies ability to continue as a going concern, disclosing, as applicable, mattersrelated to going concern and using the going concern basis of accounting unless the trustees eitherintend to liquidate the group or the charitable parent company or to cease operations, or have norealistic alternative but to do so.

15



Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with

that Act.Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor's reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economicdecisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website ah www. frc.or .uk auditorsres orrsibflities. This descriptionforms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with

Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we

might state to the charitable company's members those matters we are required to state to them in anauditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the charitable company and the charitable company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Claire Lawton FCA DChA (Senior Statutory Auditor)For and on behalf of Jolliffe Cork LLPChartered Accountants and Statutory Auditor33 George StreetWakef ieldWF1 1LX

29 October, 2018

16

Wakef ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking

Consolidated Statement of Financial Activitiesfor the year ended 31 March 2018

Notes

IncomeDonahons and Leganes'.

Donations and giftsLegaciesGrants / Sponsored

income from other trading activities

Fundraising and other activitiesRetail IncomeLotteryGeneral Income

Investment Income

Investment IncomeWakefield Hospice Trading LimitedGain on sale of Fixed Asset

Income from charitable activth'es:

CCG grant for specialist care24/7 AdmissionsEducationOther GrantsSundries

UnrestrictedFunds

527,690598,37053,500

643,519814,291

59,37736,678

108,37118,1902,250

908,658100,000

65,93733,017

2,931

RestrictedFunds

8,687

5,058

Total2018

536,377598,370

58,558

643,519814,291

59,37736,678

108,37118,190

2,250

908,658100,000

65,93733,017

2,931

Total2017

E

518,010573,900

23,583

511,523850,10746,11241,832

115,37418,626

908,658113,48646,27927,346

2,956

Total income 3,972,779 13,745 3,986,524 3,797,792

Expenditure onCost of raising funds.

Fundraising costsRetail CostsGeneral Income costs

Investment management costs

Expenditure on charitable activities

Hospice inpatient unit, day care and

carer supportFducationBereavement

528,033817,572

3,13727,578

2,806,03658,38711,500

528,033817,572

3,13727,578

14,348 2,820,38458,38711,500

470,448756,869

5,12327,265

2,823,70351,95611442

Total expenditure

11 Net fttcome from operationalactivities for the year

6 Unrealised doss)/gam on tnvestments

4,252,243

(279,464)

219,455

(603) (280,067) (349,114)

219,455 117,339

14,348 4,266,591 4,146,906

Net movement in funds for the year

Reconciliation of fundsTotal funds brought fonvardTmnsfer Restricted to Designated Fund

(60,009) (603) (60,612) (231,775)

6,022,889 9,113 6,032,002 6,263,777

11 Tvtal /rends carried fonoard 5,962,880 8,510 5,971,390

The statement of financial activities includes aII gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

6,032,002

17


Consolidated Balance Sheetas at 31 March 2018

Notes 20186 8

2017

Fixed assets

6 Investments7 Tangible assets

2,326,6402,781,467

5,108,107

2,399,8232,835,386

5,235,209

Current assets

8 Stocks9 Debtors

Cash at bank and in hand

105,059439,701743,121

1,287,881

69,897677,752462,611

1,210,260

Liabilities

10 Creditors: amounts falling duewithin one year

Net current assets

(424,598)

863,283

(413,467)

796,793

Total net assets 5,971,390 6,032,002

The funds of the Charity

11 Revenue reserves12 Designated reserves12 Capital reserve

3,184,922304,662

2,481,806

3,191,615266,487

2,573,900

5,971,390 6,032,002

The financial statements on pages 17 to 35 were approved by the Trustees on 29 October, 2018

and signed on their behalf by:

G Cattell - Trustee D J Barker - Trustee

18


Parent Company Balance Sheetas at 31 March 2018

Notes 2018 2017

Fixed assets

5 Intangible asset6 Investments7 Tangible assets

1

2,326,640

2,781,467

5,108,108

12,399,8252,835,386

5,235,212

Current assets

16 Stocks9 Debtors

Cash at bank and in hand

98,224457,891724,216

63,938695,379439,102

Liabilities

1,280,331 1,198,419

10 Creditors, amounts fallingdue within one year (425,464) (410,044)

Net current assets 854,867 788375

Total net assets 5,962,975 6,023,587

The funds of the Charity

11 Revenue reserves11 Designated Reserves12 Capital reserve

3,176,507304,662

2,481,806

3,183,200266,487

2,573,900

5,962,975 6,023,587

The financial statements on pages 17 to 35 were approved by the Trustees on 29 October, 2018

and signed on their behalf by:

G Cattell - Trustee D J Barker - Trustee

19


Consolidated Cash Flow Statementfor the year ended 31 March 2018

2018 2017

Cash used in operating activities:Net cash provided by operating activities(Note 1)

Cash flows from investing activities (Note 2)

Change in cash and cash equivalents in the year(Note 3)

65,321

455,604

520,925

(560,166)

154,610

(405,556)

Cash and cash equivalents at beginning of the yearCash and cash equivalents at end of the year

Change in cash and cash equivalents in the year

634,274

1,155,199

520,925

1,039,830634,274

(405,556)

Notes to the Consolidated Cash Flow Statement

Reconciliation of net incoming resources tonet cash flow from operating activities

Net income for the year (as per the Statementof financial position)Adjustments for:—

Depreciation(Profit)/Loss on disposal of fixed assets

(Increase)/Decrease in stocksincrease)/Decrease in debtorsIncrease/(Decrease) in creditors

Net cash provided by operating activities

(280,067)

133,618(2,250)

(35,162)238,05111,131

65,321

(349,114)

141,135903

(65,962)(216,263)

(70,865)

(560,166)

Investing activitiesPayments to acquire tangible assets

Receipts from sale oi' tangible assets

Payments to acquire investments

Receipts from sale of investments

Receipt from sale of properties

(79,699)2,250

(76,441)609,494

(61,932)

(113,813)317,77312,582

Net cash provided by (used in) financing activities 455,604 154,610

Analysis of cash and cash equivalents

Cash at bank and in handInvestment cashInvestment managers dealing accounts

2018

743,121408,149

3,929

2017

462,611170,361

13302

Change inthe year

8280,510237,788

2,627

Total cash and cash equivalents 1,155,199 634,274 520,925

20


Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018

1 Accounting policies

The principle accounting policies adopted, judgements and key sources of estimationuncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting byCharities: Statement of Recommended Practice applicable to charities preparing their accountsin accordance with the Financial Reporting Standard applicable in the UK and Republic ofIreland (FRS 102) (effective 1 January 2015) — (Charities SORP (FRS 102)), the Financial

Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the CompaniesAct 2006.

The hospice meets the definition of public benefit entity under FRS102. Assets and liabilities are

initially recognised at historical cost or transaction value unless otherwise stated in the relevant

accounting policy note,

Group Financial Statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary

Wakefield Hospice Trading Limited on a line-by-line basis. A separate Statement of Financial

Activities and Income and Expenditure Account for the charity has not been presented becausethe Trust has taken advantage of the exemption afforded by section 40B of the Comparoes Act

2006.

Going Concern

The Trustees consider that the charity has adequate resources to continue as a going concern

and have prepared the Accounts on the going concern basis. The most significant area of

concern in future years is the level of Statutory funding and the Tiustees are taking steps to

mitigate the risk of a significant decrease in Statutory funding

Fund Accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the

charity. Designated funds are unrestricted funds of the charity which the Trustees have decided

at their discretion to set aside to use for a specific purpose. Restricted funds are where it has

been specified they should only be used for a specific area of work. The costs of raising and

administering such funds are charged against the specific fund.

21


Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018(cont)

Accounting Policies (cont)

Incoming resources

Voluntary income is recognised in the Statement of Financial Activities when the Charity is

legally entitled to the income and the amount can be quantified with reasonable certainty.

For legacies, entitlement is taken on a case by case basis as the earlier of the date on which: the

charity is aware that probate has been granted, the estate has been finalised and notification has

been made by the executor(s) to the charity that a distribution will be made, or when a

distribution is received from the estate. Receipt of a legacy, in whole or part, is only considered

probable when the amount can be measured reliably and the charity has been notified of theexecutor's intention to make a distribution, If the legacy is in the form of an asset other than

cash or an asset listed on a recognised stock exchange, recognition is subject to the value of the

asset being able to be reliably measured and title to the asset has passed to the charity.

Fundraising income arises from events organised by the Hospice fundraising team. Where an

entry fee is payable for an event, that income is deferred until the event is held, in case the

event is cancelled and fees have to be repaid.

Grants received from the NHS for the provision of care are set out in a service level agreementwhich covers a particular year, The grant is accounted for when it is received. Other grants,

including grants for the purchase of fixed assets, are recognised in full in the statement offinancial activities in the year in which they are receivable.

Donated goods and services

Donated goods are recognised when the charity has control over the item, any conditions

associated with the donated item have been met, the receipt of economic benefit from the use ofthe item is probable and that economic benefit can be measured reliably.

Donated services or facilities are included in income at the estimated value of the gift to the

charity when received, based on the amount that the charity would have been prepared to payfor these services or facilities, with a corresponding entry in the appropriate expenditure

heading for the same amount.

Income from goods donated for sale in the charity's shops is recognised at the point of sale.

Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payraent to

a third party, it is probable that settlement will be required and the amount of the obligation

can be measured rehably. All resources expended are accounted for on an accruals basis under

the I'ollowing headings.

Costs of raising funds comprises the cost of raising funds from voluntary income, grants,

fundraising events and retail activities.

Investment management costs comprise the costs of nmnaging the hospice's investment

portfolio including investment property repairs and renewals.

22


Notes to the Consolidated Financial Statementsfor the year ended 31 March 2018 (cont)

Accounting Policies (cont)

Expenditure on charitable activities includes the cost of providing specialist palliative care and

support in the inpatient unit and day care, bereavement support and educational activities

undertaken to further the purposes of the charity,

Support costs comprise those costs which are incurred directly to support the work of the

hospice and include adminisiration, finance, personnel and office costs, Support costs are

allocated to an activity in proportion to the direct costs of that activity.

Vo brnteers

The value of the services provided by volunteers is not incorporated into these financial

statements.

Intangible Assets

Goodwill relates to the transfer of the trade in donated goods from Wakefield Hospice TradingLimited.

Tangr'bie fixed assets

Tangible fixed assets costing more than EI,000 are capitalised at cost including any incidental

cost of acquisition.The general policy is to provide depreciation at rates calculated to write off the cost less any

residual value over their estimated useful lives as follows;

Freehold land and buildingsAdditions to leasehold premisesFixtures, fittings and equipment-HospiceRetailMotor vehicles

50 yearsover the term of the lease

5 years5 Years4 years

Investments

Investments are a form of basic financial instrument and are initially recognised at their

transaction value and subsequently measured at their fair value as at the balance sheet date

using the closing quoted market price, except for the shares in the trading subsidiary which are

carried at cost. The Statement of Financial Activities includes the net gains and losses arising

on revaluation and disposals tluoughout the year,

Investment properties

Six investment properties were valued in March 2018 for sale purposes and the remaining

properties were revalued based on vacant possession with appropriate discounts depending

upon the type of tenancy. The next revaluation will be in March 2021.



Accounting Policies (cont)Investments - Group

The investments of the group are as above except for the investment in Wakefield HospiceTrading Limited, which is eliminated on consolidation.

Stocks

Stocks of new goods are valued at the lower of cost and the estimated amount realisable from

disposal in the normal couzse of business,

A physical stocktake of donated goods for resale was undertaken at the year end, Physical

stock comprises items priced and recorded on the retail software, this was discounted by 25%,and open priced items or stack awaiting sorting which was discounted by 50%. In 2017 as a full

physical stocktake was not undertaken the valuation of the stock was based on April sales and

out of season stock at 50% of stock recorded as held in the warehouse.

Operating leases

Rentals applicable to operating leases are charged to the SOFA on a straight-line basis over the

lease term, even if payments are not made on such a basis.

Pension costs

Wakefield Hospice operates a defined contribution pension scheme, the assets of which are

held separately from those of the group in independently administered funds, The scheme is

open to all employees, except those staff who are active members of the NHS pension scheme.

The group contributes 4% (2017: 4%) of salary in respect of those employees who are members

of the Wakefield Hospice pension scheme.

For those employees who are active members of the NHS pension scheme, the group is obliged

to make contributions to the scheme at rates instructed by the NHS, currently 14% of salary

(2017: 14%), but has no commitment to make good an actuarial deficit nor entitlement to benefit

from surplus funding. The scheme is a multi-employer scheme and it is not possible to identify

the assets and liabilities attributable to the charitable group. Therefore, in accordance with FRS

102, the scheme is accounted for as a defined contribution scheme, All contributions to pension

schemes are charged to the SOFA as they fall due,

From 1 May 2014 Wakefield Hospice was required to automatically enrol any employees who

were not already members of a pension scheme and met certain criteria into a pension scheme,

A new defmed contribution pension scheme was set up, the assets of which are held separately

from those of the group in independently administered funds. The group contributes 2% (2017:

2%) of salary.

Deferred tux

Deferred tax is recognised in respect of all timing differences that have origuiated but not

reversed at the balance sheet date.

Legal status of the CharifyThe Charity is a company limited by guarantee and has no share capital. In the event of the

Charity being wound up, the liability in respect of the guarantee is lindted to LI per member of

the Charity.

24

Waket'ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking

Notes to the Consolidated Financial Statementsfor the year ended 31 March 201S (cont)

Charity2018 2017

Group2018 2017

2 Net incoming resources

Net incoming resources are stated after charging;

Auditors' remunerationOperating lease rentalsDepreciation of tangible fixed assetsLoss on Disposal of Fixed AssetsLoss on Disposal of Investment Property

5,000123,457133,618

5,000133,804141,135

9037,418

7,000123,457133,618

7,000133,804141,135

9037,418

And after crediting:Profit on sale of fixed assetsProfit on sale of quotedinvestments

2,250

21,045 12330

2,250

21,045

12,330

12,330

3 Staff costsNo remuneration or expenses were paid to trustees during the year (2017;Nil), The Medical

Director also has a contract of employment with Mid Yorkshire Hospitals NHS Trust.

Other staff costs were as follows;Charity

2018 2017Group

2018 2017

Gross SalariesEmployers National Insurance

Employers Pension Contributions

Wages and salaries

62,767,288

230,348189 564

3,187,200

2,775,684224,998159 507

3,160,189

62,767,288 2,775,684

230,348 224,998189 564 159 507

3,187,200 2,160,189

The average number of persons employed by the Charity during the year was;

Charity2018 2017

Group2018 2017

Iqospice inpatient unit, day therapy andpatient supportFundraisingRetailAdministration

83112512

9211

12

83112512

9211

12

131 137 131 137

25



Staff costs (cont)

Employees earning more than 660,000 per annum:Charity and Group

2018 2017f.

Between 660,000 and 669,999Between 670,000 and 279,999Between 680,000 and 689,999

All staff, excluding retail staff, are paid in accordance with NHS Agenda for Change Pay scales.

4 Analysis of total resources expended

Staffcosts

Othercosts Dep'n

SupportCosts

Total2018

Total2017

Cost of generating fundsFundraisingRetailPortfolio ManagementFeesGeneral Income Costs

250,004414,158

231,798320,460

27,5783,137

5,66221,096

40,56961,858

528,033817,572

27/783,137

470,448756,869

27,2655,123

Charitable activitiesI-Iospice inpatient unitdaycare and patientsupportEducationBereavement

2,139,01258,273

363,770 106,860 210,742 2,820,384 2,823,703114 - — 58387 51,956

11,500 11,500 11,542

2,861,447 958,357 133,618 313,169 4,266/91 4,146,906

Details of support costs

Finance IT& Admin

OtherCosts

Total2018

Total2017

FundraisingRetailHospice inpatientunit, day care andcarer support

35,33253,871

183,534

272,737

2,6854,094

13,949

20,728

2,5523,893

13,259

19,704

40/6961,858

210,742

313,169

36,54956,723

214,801

308,073

26

Waken''ield Hospice(A Company Limited by Guarantee) and its Subsidiary Undertaking


5 Intangible fixed assets - Charity Balance at Balance at1.4.17 Additions Disposals 31.3.18

Cost

Goodwill

Net book value

Goodwill

The Goodwill relates to the transfer of the trade in donated goods from Wakefield HospiceTrading Limited to Wakefield Hospice.

27



2018 2017

Investments - Charity

Investment in Wakefield HospiceTrading Limited

Charities Official Investment Fund

Brought forwardDisposalsUnrealised gain/(loss) on investment

507,020(507,020)

542,302(96,369)61,087

Market value at 31 March 2018 507,020

Brought forwardAdditionsDisposalsUnrealised gain/0oss)on investments

411,64076,441

(81,429)860

455,560113,813

(209,073)51,340

Market value at 31 March 2018

Investment dealing accounts

407,512

3,927

411,640

1,302

Investment properties

Brought forwardDisposalsNet gain on revaluatron

1309,500

197,550

411,439

1329,500(20,000)

412,942

Investment cash1,507,050

408,1491,309,500

170,361

Total investments - Charity 2,326,640 2,399,825

6 Investment Properties were valued in March, 2018 for sale purposes by Claire KendallMRICS of Richard Kendall under the Charities Act 2011 and the Charities (QualifieSurveyors' Reports) Regulations 1992.The remaining investment Properties wererevalued by Simon Kendall MRLA, MNAREA of Richard Kendall based on vacantpossession values, discounted by 5% where the properties were subject to a conventionalAssured Shorthold Tenancy agreement and 30% for properties subject to RegulatedTenancy agreement, No properties were unlet at the time of the valuation. There havebeen no changes in the types of Tenancy since the date of the valuation.

The investment in Wakefield Hospice Trading Limited represenls a 100% holding hr the

ordinary share capital, The company is registered in England and its principal activityis that of the retail of merchandise through charity shops,

Investments - Group

The investments of the group are as above except for the investment in Wakefield HospiceTrading Limited, which is eliminated on consolidation.

28



7 Tangible fixed assets - Charity Balance at Balance at1.4.17 Additions Disposal ~ 31.3.18

f. f. f.

Cost

Freehold land and buildingsAlterations to leasehold premisesFixtures, fittings and equipment-HospiceRetailMotor vehicles

3,286,789204,953

541,38152,44454,163

4,7736,184

68,742

3,291,56295,892 115,245

24,438 585,68552,444

24,275 29,888

4,139,730 79,699 144,605 4,074,824

Depreciation


613,385140,680

466,47141,28342,525

65,8319,697

46,6915,5805,819

95,892

24,438

24,275

679,21654,485

488,72446,86324,069

1,304,344 133,618 144,605 1,293,357

Net book value


2,673,40464,273

74,91011,16111,638

2,612,34660,760

96,9615,5815,819

2,835,386 2,781,467

29



7 Tangible fixed assets - Group Balance at Balance at1.4.17 Additions Disposals 31.3.18

f. e

Cost


3,286,789204,953

541,38152,44454,163

4,7736,184

68,742

3,291,56295,892 115,245

24,438 585,68552,444

24,275 29,888

4,139,730 79,699 144,605 4,074,824

Depreciation


613,385140,680

466,47141,28342,525

65,8319,697

46,6915,5805,819

95,892

24,438

24,275

679,21654,485

488,72446,86324,069

1,304,344 133,618 144,605 1,293,357

Net book value


2,673,40464,273

74,91011,16111,638

2,612,34660,760

96,96]5,5815,819

2,835,386 2,781,467

30



Charity2018 2017

Group2018 2017

8 Stocks

New goods for resaleDonated Goods 98,224 63,938

6,83598,224

5,95963,938

98,224 63,938 105,059 69,897

9 Debtors

Trade debtorsOther debtorsPrepaymentsAccrued incomeGift Aid due from Trading Subsidiary

70,38630,64072,858

265,81718,190

50,59330,687

101,572493,901

18,626

70,38630,64072,858

265,817

51,40430,875

101,572493,901

457,891 695,379 439,701 677,752

10 Creditors

Falling due within one year;Amounts owed by subsidiaryTrade creditorsAccrualsDeferred incomeOther creditors

3,414286,85859,51514,99260,685

2,250190,719

48,34499,95668,775

287,31261,51514,99260,779

194,39450,34499,95668,774

410,044 424598 413,468

Deferred IncomeDeferred income comprises advance entry fees and income received in respect ofoccurring after 31 March 2018 and grants for training to be expended in 2017/18

Charity

events

Group

Balance as at 1 April 2017Amount deferred in the yearAmount released to income

99,95614,992

(99,956i

99,95614,992

l99,956)

Balance as at 31 March 2018 14,992 14,992

31



Charity2018 2017

11 Revenue reserves

Group2018 2017

f.

Unrestricted funds - GeneralBalance brought forwardSurplus /(Deficit) for the yearTransfer (to)/from capital reserve

3,174,087 3,266,194(60,009) (172,214)53,919 80,107

3,182/02(60,009)53,919

3,274,609(172,214)

80,107

3,167,997 3,174,087 3,176,412 3,182,502

Restricted fundsBalance brought forward(Deficit)/Surplus for the yearTransfer (to) unrestricted fund—Designated

9,113(603)

73,674(59,561)

(5,000)

9,113(603)

73,674(59,561)

(5,000)

Total Restricted funds 8,510 9,113 8510 9,113

Total Revenue reserves 3,176407 3,183,200 3,184,922 3,191,615

Restricted fundThe restricted fund comprises donations and grants made to the Hospice for a specific purposebut which have not yet been applied to that purpose,

12 Capital reserve

Unrestricted fundsBalance brought forwardTransfer (to)/ from revenue reservesTransfer (to) unrestricted fund—Designated Fund

2,573,900(53,919)

2,656,481 2,573,900(80,107) (53,919)

2,656,481(80,107)

(38,175) (2,474) (38,175) (2,474)

2,481,806 2,573,900 2,481,806 2,573,900

Designated fundBalance brought forwardTransfer from unrestricted fundTransfer from Restricted fund

266,48738,175

259,0132,4745,000

266,48738,175

259,0132,4745,000

304,662 266,487 304,662 266,487

Total Capital Reserve 2,786,468 2,840,387 2,786,468 2,840,387

32



Capital reserve

The capital reserve comprises the net book value of the tangible fixed assets of the charitable

parent company, including the building from which Wakefield Hospice operates. Costsassigned to this fund represent the depreciation of these assets over their estimated useful lives.

Designated Fund

The Designated Fund has been transferred between revenue reserves and capital to reflectwhere the assets are held,

The Designated Fund includes the balance of various grants received and expended but not

charged in the accounts. The funds are reduced by any revenue expenditure and the balance

reduced over the useful Itfe of the asset in line with the depreciation charge,

13 Analysis of net assets between fundsParent

Revenue FundsLnrestricted Restricted

Intangible AssetsInvestments 2,321,640Tangible AssetsCurrent Assets 1,271,821 8,510Liabilities 425 464

Capital FundsUnrestricted Designated

15,000

2,476,805 304,6620 0

Total

12,326,6402,781,4671,280,331425 464

3 167 997 8 510 2 481 806 304 662 5 962 975

Consolidated

InvestmentsTangible AssetsCurrent AssetsLess: CurrentLiabilities

Revenue FundsUnrestricted Restricted

2,321,639

1,279,371 8,510

424 598

TotalCapital FundsUnrestricted Designated

5,001 2,326,640

2,476,805 304,662 2,781,4671,287,881

424 5983 176 412 8 10 2 481 806 304 662 5 971 390

33



14 Operating lease commitments

At 31 March 2018 the following operating lease payments are committed to be paid by the

group:

Land and Buildings2018 2017

f.Expiring;Within one yearBetween one and five years

92,542145,729

100,80959,625

238,271 160,434

Motor Vehicles2018 2017

Expiring;Within one yearBetween one and five years

7,79611,044

2,137

18,840 2,137

15 Subsidiary company

The company has one wholly owned trading subsidiary. Wakefield Hospice Trading Limited,the principal activity of the company is the retailing of merchandise through charity shops. A

summary of the company's trading results is shown below:

2018 2017

Turnover 43,465 40,367

Cost of sales (23,114) (19,504)

Gross profit

Administration expenses

Operating profit 18,174 18,606

20,351 20,863

(2,177) (2,257)

Interest receivable and similar incomeGift aid donation to the holding company

16 20

(18,190) (18,626)

Net profit/(loss) for the year


Comparative Statement of Financial Activitiesfor the year ended 31 March 2017

Notes Unrestricted RestrictedFunds Funds

E E

Total2017

IncomeDonahons and Legacies.

Donations and giftsLegaciesGrants / Sponsored

Income from oiher trading activities, '

Fundraising and other activitiesRetail IncomeLotteryGeneral Income

Investment Income

Investment IncomeWakefteld Hospice Trading LimitedGain on sale of Fixed AssetProceeds of Sale of Right of Way

income from chan table ar'. tiothes;

CCG grant for specialist care24/7 AdmissionsEducationOther GrantsSundries

509,886573,900

6,090

511,523850,107

46,11241,832

115,37418,626

908,6580

46,2790

2,956

8,124

17,493

113,486

27,346

518,010573,900

23,583

511,523850,10746,11241,832

115,37418,626

908,658113,486

46,27927,346

2,956

Total income 3,631,343 166,449 3,797,792

Expenditure onCost of raising funds;

Fundtaising costsRetail CostsGeneral Income costs

Investment management costs

Expenditure on chantable activities

Hospice inpatient unit, day care andcarer supportEducationBereavement

470,448756,869

5,12327,265

2,609,19351,956

42

470,448756,869

5,12327,265

214,510 2,823,70351,956

11,500 11,542

Total expenditure 3,920,896 226,010 4,146,906

11 Net income from operationalactivities for the year (289,553) (59,561) (349,114)

6 Llnreaiised doss)/gem oninvestments 117,339 117,339

Net movement in funds for the year (172,214) (59,561) (231,775)

Reconciliation of fundsTotal Funds brought forwardTransfer Restricted to Designated Fund

6,190,1035,000

73,674

(5,000)6,263,777

11 Total fimds carried forward 6,022,889 9,113 6,032,002

The statement of financial activities includes all gains and losses recognised in the year.All income and expenditure derive from continuing activities.

35


Detailed Income and Expenditure Accountfor the year ended 31 March 2018

Operating income 2018 2017

Voluntary IncomeSupport GroupsDonationsLegaciesComplimentary TherapyGifts in KindGrants & Trusts

50,712392,664598,370

3,30689,69458,558 1,193,304

50,610429,516573,900

2,59535,28923,583 1,115,493

Income from Other Trading ActivitiesFundraising incomeRetail incomeLotteryCateringCommunicationsRoom hireTrading incomeSundry income

643,519814,29159,37730,541

7332,2393,165

511,523850,10746,11228,592

8432,8105,562

1, 553,865 4,025 1,449,574

Income from Charitable ActivitiesCCG grants for specialist care

24/7 AdmissionsEducationBereavementCCG Grant for SystmOneCCG Grant for EoLC ProjectDemenda PostSundries

908,658100, 000

65,93711,500

6,8466,8287,8442,931

908,658113,48646,27911,5005,846

10,000

2,9561,110,544 ————— 1,098,725

Investment incomeBank interestDividendsGain on sale of investmentsUnrealised profit/(loss) on investmentsGift Aid from Trading SubsidiaryRental incomeGam on sale of Fixed assets

3,23630,81121,045

198,41018,19074,324

2,250 348,266

4,79536,5754,912

112,42718,62674,004

251,339

Total Income 4,205,979 3,915,131


Detailed Income and Expenditure Accountfor the year ended 31 March 2018(cont)

Brought forwardExpenditure

Expenditure on raising fundsFundraising costsFundraising salariesRetail expenditureRetail Property CostsRetail salariesGeneral Income Costs

20186

4,205,979

231,797250,00480,261

240,200414,158

3,137

2017

3,915,131

184,927242,39153,230

206,773403,171

5,123

Expenditure on CharitableStaff advertisingCateringCleaningClothingComplimentary therapyRepairs & renewalsMedical costsProfessional feesSalariesEducation costsEOLC ProjectStaff trainingLrnrecoverable VATSundriesMotor & travelBusiness RatesLight, heat &. water

Investment costsPortfolio management feesRental property expenditure

Support CostsBank char gesTelephoneInsuranceAudit feeSalariesPrinting, postage & stationeryGovernanceDepreciationLoss on Disposal of Fixed Assets

Staff Advertising & Training

1,219,557

54031,95611,31913231,410

109,16618,34543,395

2,197,28558,3872,465

15,3421,001

13,3164,9859,568

52,866

2,572,669

3,89523,683

27,578

3,61015,43012,326

5,090267,480

5,2982,288

133,618

1,647

1,095,615

3,43632,84815,755

2,4331,513

126,58220,39637,511

2,184,53451,9569,905

16,0691,2515,2886,484

10,43748,420

2,574,818

4,43122,834

27,265

3,43812,15710,1984,160

268,3477,922

948141,135

903

Net surplus(deficit) for the year

446,787 4,266391

(60,612)

449,208 4,146,906

(231,775)

wakefield (a company limited guarantee) subsidiary undertaking

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