Annual Report 2016-2017 - Kirkwood Hospice · Consultant in Palliative Medicine Director of...

Annual Report2016-2017

Sarah, Duchess of York, is presented with a gift fromsix year old Cara Davies on her visit to Kirkwood.

Enabling Quality of Life for our patients

Kirkwood: Stories on film

Our Impact

Charity Reference and Administrative Details

Statement from the Chair of Trustees

Statement from the Chief Executive

Trustees’ Annual Report (Including Directors’ Report and Strategic Report)

Independent Auditor’s Report

Consolidated Statement of Financial Activities (including income and expenditure account)

Consolidated Balance Sheet

Charity Balance Sheet

Consolidated Statement of Cash Flows

Notes to the Financial Statements

Contents

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What is the EQOL project and who does it support?

The Enabling Quality of Life project was developed to help people to increase their ability to be independent and to help them to remain as active as possible, in spite of their illness.

EQOL is aimed at any of our patients whether they are living at home or as an in-patient here at Kirkwood. Some of our patients are fully independent, whilst others need assistance to move and some are unable to get out of bed at all. We assess all our patients individually and offer the support that is right for them. Simple small things can be so important, especially when people are too ill or fatigued to get out of bed. Goal setting helps us to find out what is important for a patient to achieve or do whilst they are being supported by the Kirkwood team.

How are people benefitting from this project?

We are helping people to achieve goals, be more active, better manage their symptoms and find ways to cope with their changing condition in proactive and positive ways.

Do you have any examples that you can share?

We have helped families to create special memories together with pizza and movie nights, picnics and Easter egg hunts in the garden, as well as small activities such as spa baths and makeovers.

We’ve also created opportunities for people to do some gardening and join exercise groups to encourage improvements in mobility and function. These have helped patients to feel confident about doing more activities at home and helped them to more fully participate in life.

How will Kirkwood continue to develop this project?

The enablement programme is growing all the time. Supporting people to live the best quality of life possible is one of Kirkwood’s key priorities and we are developing the EQOL project with all of our services. We are committed to making sure that people in our care are able to focus on what is important to them and supporting them to achieve their goals.

As a result, we are helping to improve people’s confidence and reduce anxiety about taking part in activities that they have previously enjoyed.

When patients start to enjoy things that are really important to them, their quality of life improves because their illness and limitations become less of a barrier.

How important is it that people with a life limitingillness continue to set goals and targets for the future?

Sometimes patients feel there is no point in continuing to participate in activities, so stop doing things that they enjoy. Professionals, carers, friends and family can also be very protective, doing things for a patient or loved one that they are capable of doing themselves. This can be very disempowering for someone with a life limiting illness.

Setting goals encourages patients to reconnect with friends, family and interests. As they achieve these goals, patients begin to focus on more positive aspects of their lives and manage their illness better.

Enabling Quality of Life for our patients

Kirkwood Hospice exists to improve quality of life for people affected by a life-limiting illness. Earlier this year, the team at Kirkwood Hospice launched the EQOL project, which is helping to support people with life limiting illnesses to improve their quality of life. We caught up with physiotherapist, Lisa Wright, to find out more about what EQOL actually means and how the project is already showing positive results.

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Physiotherapist, Lisa Wright, is taking a lead role in the EQOL project.

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Kirkwood: Stories on filmWe have been collecting stories from the people who use our services. We want to show you the difference our services make toreal people in our community and we can’t think of a better way than letting our service users tell you first-hand.

I hated the fact that everyone seemed to be getting on with their lives, but for me life had just stopped.

I felt that I had to be the rock, the one keeping everything together. I think I felt that seeking help was failing my mum in some way.

I remember feeling really comforted and reassured when I

was with the Family Care Team.It was such a big relief to just

offload and not have to put on a brave face all the time; to be assured that it’s okay to cry, but that it’s okay to smile too.

During my time with the Family Care Team, I started to find peace in and amongst my grieving. And most important of all, I started to find peace within myself too.

A friend of mine told me that he came down to Drop-In at the Hospice so I came with him one Wednesday and I was amazed really at what went on.

People get the wrong impression about the

Hospice I’ve found, and I was one of them actually. I thought people came in here to

spend their final few days. I was really pleasantly surprised, it’s nothing like I thought it would be.

I can discuss my treatment if I like and keep up to date.

Coming here has made a massive difference. I was getting depressed; really, really low. I just couldn’t organise myself to get on with things. Then I came here and after about a month I could run round the block!

I started on the Breathe Better Course. It was very good and very informative.

I found out about the course through my Community Nurse. I felt like I didn’t have anywhere to go until she suggested coming on the course.

The breathing exercises have been a godsend really. Different

positions to help your breathing when you’re struggling and teach you that you have limits - you don’t have to do a million things all at once.

I have noticed through the weeks that everybody has benefitted from the course.

Once I came to the Hospice I knew I had made the right choice. They make you feel so welcome and it’s very relaxing.

Vanessa Pound

Charles Smith

Mandy Schoolar

Quick Tip

Do you have a QR Code reader on your phone? Simply scan the codes

below to watch the videos in full, or watch them online at: www.

kirkwoodhospice.co.uk/stories

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Quick Tip

Do you have a QR Code reader on your phone? Simply scan the codes

below to watch the videos in full, or watch them online at: www.

kirkwoodhospice.co.uk/stories

Complementary Therapies help to promote relaxation and an increased

sense of personal well-being.

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The impact of Kirkwood HospiceHere’s a snapshot of how Kirkwood helps to support patients and families in Kirklees, how the local community helps to support the Hospice and the amount it costs to keep our doors open.

2016-17 / 289No. of Service Users who

provided feedback about their experiences of care

2015-16 / 202 Calls to our 24/7 Advice Line in 2016-17

12,116

2,979 face to face appointments were made by our Specialist Community Palliative Care Team in 2016-17

£1.26m£1.37m

£1.65m

Increase in contribution from fundraising activities between 2014-15 and 2016-17

£391,769

248,709page views on our website in the last 12 months.

2014-15 2015-16 2016-17 1,090 1,392 1,445

2014-15499

2015-16725

2016-17737

Number of people cared for at the very end of life

Number of patients accessing Kirkwoodservices

Service Users who rated our care as Outstanding or

Excellent in 2016-17

94%

The amount spent providing care forour patientsand their families

2014-15

£3,698,4772015-16

£3,845,7952016-17

£4,306,874

3,000 people with palliative care needs in Kirklees who are in the last year of their life - our ambitionis to help them all

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Charity registration numberCompany registration number

Trustees

Life President

Chairman

Company Secretary & Registered Office

Chief ExecutiveDirector of Clinical ServicesConsultant in Palliative MedicineDirector of Fundraising & MarketingDirector of Finance & Administration

Charity Reference and Administrative DetailsYear Ended 31 March 2017

5129871645888

Mr B F AinsworthMrs J BradyMiss L A ChapmanMr J C DenhamMr K DunningMrs S GalvinMr D N HarlingMrs K S HinchliffMr J C PhilpottMr P R SandsMr J R Spain

Mr D N Stocks

Mr J R Spain

Mrs P E Wade DChA MAAT21 Albany RoadDaltonHuddersfield HD5 9UY Mr M Crowther BA(Hons) PgDipMrs S Shaw RNDip Adult Nursing BSc(Hons) MSc Dr S Oxberry MBChB BSc(Hons) PhD FRCPMr G D Wilkinson MA MInstF (Cert) BA(Hons)Mrs P E Wade DChA MAAT

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Auditor

Solicitors

Honorary Chartered Surveyors

Bankers

Investment managers

Wheawill & Sudworth LimitedChartered Accountants35 WestgateHuddersfieldHD1 1PA

Schofield Sweeney30 Market StreetHuddersfieldHD1 2HG

Bramleys 14 St George’s Square HuddersfieldHD1 1JF

Lloyds TSB Bank plc1 WestgateHuddersfieldHD1 2DN

Investec Wealth & Investment LimitedQuayside HouseCanal WharfLeedsLS11 5PU

Members of the Kirkheaton Support Group present a cheque to Kirkwood Hospice in March 1986.

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Welcome to the Annual report detailing the activities of Kirkwood in 2016/17, a year that encompassed the 30th anniversary of our opening on 18th March 1987. As set out further in this Report, the year was one of continuing progress and associated changes.

This progress would not have been possible without the generous support and contributions from our many supporters and volunteers. This ranges from commitment of people’s time and resources, to many and varied fundraising events and initiatives, donations and legacies. All these contributions, large or small are greatly appreciated in enabling us to maintain and improve our services, but I would like to highlight a few as illustrations of this range.

In their Diamond Jubilee year, • Huddersfield Lions raised funds for the refurbishment of the kitchen at our Dalton site.

arrangements that was agreed in 2015, to ensure that we operated at the best levels of practice of the charity sector. The changed requirements mean that my term as Chair of Trustees (6 years) must end in mid-2018, and I must also step down as a Trustee. However, I have chosen to leave at the end of 2017, to coincide with the conclusion of our 30th anniversary events.

“Progress would not have been possible without the generous support and contributions from our many supporters and volunteers.”

Ridley & Hall (Solicitors) • enabled the establishment of an Admiral Dementia Nurse post at Kirkwood by proactively identifying sources of funds, and working with Kirkwood and Dementia UK.

In 2016 Chris Hatfield and • Kirsty Meigh stepped down as Trustees after 9 and 7 years’ service respectively. Chris had been Chair of the Finance Committee, while Kirsty was Chair of the Fundraising Committee. They provided valuable expertise from the areas of investment and marketing, and Chris continues as a Director of our Kirkwood Enterprise trading subsidiary. We thank them for their efforts on the Council and their continuing support. We wish them well for the future.

The Council of Trustees has been in a period of renewal, following the review of governance

Statement from the Chair of Trustees

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As a Trustee over 11 years and as Chair of Kirkwood, it has been an exciting and challenging time of change with new executive managers, new trustees with a wider range of experience, and the continuing need for our services and organisation to keep pace with changing healthcare organisations and with more rigorous governance requirements. All of this happening whilst maintaining and improving our services and reputation, and expanding our retail estate. What has not changed is the quality and dedication of all our wonderful staff, and I thank them for their support, dedication and skill. I am confident that I hand on responsibility with the organisation in good order and with a tremendous future.

John SpainChair of TrusteesKirkwood Hospice

September 2017

Kirkwood Chair of Trustees, John Spain.

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Over the past 30 years, Kirkwood Hospice has worked hard to develop and maintain its excellent reputation, based on the very high standard of care it provides for people across Kirklees. Kirkwood’s reputation is of the highest importance to all connected with the Hospice. It is the reason why people in Kirklees and beyond feel confident to support us so generously to continue the work that we do. We are acutely aware that the quality of what we do is directly linked to the support we receive.

Kirkwood Hospice exists to improve the lives of people affected by life limiting illnesses. With the help of our partners and supporters, we have been able to provide vital care to even more people in Kirklees over the past 12 months. Importantly, we are increasingly confident that we are delivering a high quality of care thanks to improvements in the way we record and analyse data. In utilising

management team to ensure that the organisation is better placed than ever to develop.

The environment in which we operate continues to change. In particular, the statutory regulation of fundraising activities changed significantly this year and, from May 2018, new General Data Protection Regulations will come into force. The latter, will create a challenge for our teams across the organisation, but also provides a unique opportunity for us to revisit the ways in which we engage with our supporters and those that use our services.

The financial climate continues to remain uncertain, with continued pressure on NHS and social care funding and low levels of growth in the economy. Our approach to strengthen our partnerships with NHS organisations is progressing as planned. Our two local Clinical Commissioning Groups have agreed to work with Kirkwood

powerful information regarding patient and families’ experience of our care and data on how we address patient needs, we are now better able to respond to the needs of local people who rely on our services.

2016-17 has been another important year in our development as we continue to make good progress against our existing strategic priorities. There is much work still to be done to ensure that we achieve our future ambitions and that our current services are sustainable in the long term, but this year we have created a more stable position from which we can continue to develop our ambitious plans. We have introduced further resources into the team to support our employees and volunteers, which is intended to help build resilience in our workforce through improved health and wellbeing support alongside workforce planning. We have also invested in our wider

Statement from the Chief Executive

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to develop a joint approach to commissioning services for people in Kirklees. We believe that this will help us to better secure the statutory funding Kirkwood Hospice receives from the NHS in the longer term.

“We are one team, a diverse team, and the contribution of all our colleagues is vital to the success of Kirkwood Hospice.”

Whilst we are working hard to secure NHS funding, growth from these sources is unlikely and therefore the performance of our fundraising and retail teams remains important. We remain ambitious in our aim to care for more people and to close the gap between those

and the people that need our services.

Michael CrowtherChief ExecutiveKirkwood Hospice

September 2017

that currently do and those that could use our services. In order to help more people in the future, maintain the right approach to income generation is critical.

Previous investment in our fundraising capabilities is now paying off and the return on investment is improving. Growth in income from our weekly Lottery, community supporters and events continues and is helping to play a vital role in securing our future.

I am incredibly proud to be part of the team at Kirkwood Hospice. We are one team, a diverse team, and the contribution of all our colleagues is vital to the success of Kirkwood Hospice. Every employee and volunteer is an important part of the care that people experience at Kirkwood. Our compassion comes as standard and we care deeply about what we do, the community we are part of

Kirkwood Chief Executive, Michael Crowther.

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The Trustees present their report and the audited financial statements of the charity for the year ended 31 March 2017. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity. Kirkwood Hospice is a registered charity, number 512987 and a company limited by guarantee in England, number 1645888. The organisation was incorporated as a company limited by guarantee on 23 June 1982 and registered as a charity on 3 August 1982. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.

The directors of the charitable company are its Trustees for the purposes of charity law. The Trustees who have served during the year and since the year end were as follows:

Mr B F Ainsworth• Mrs J Brady• Miss L A Chapman• Mr J C Denham• Mr K Dunning• Mrs S Galvin• Mr D N Harling• Mr C J Hatfield • Resigned 10 October 2016Mrs K S Hinchliff• Appointed 15 December 2016Mrs C J McGowan• Mrs K J Meigh• Resigned 10 October 2016Mr J C Philpott• Mr P R Sands• Mr J R Spain•

Members retiring by rotation in accordance with the Articles of Association are Mr J Spain, Mr J C Denham, Mr B Ainsworth and Mr J Philpott who are retiring by rotation under Article 24.2 of the

Structure, governance and management

The governing body of Kirkwood Hospice is the Council of Management whose members are elected by the Company’s Members. As at 31 March 2017, the Council of Management comprised twelve Trustee members who meet 4 times per annum. There are committees dealing with Clinical Governance, Finance and Resources, Income Generation and Marketing, Nominations, Risk & Audit, Remuneration and other specific referrals from Council of Management. The salary of the Chief Executive is determined by the Trustees with advice from the Remuneration Committee on the Chief Executive appointment and by periodic reviews conducted by the Chair of Trustees. The salaries of the other members of the Executive Management Team are determined by the Chief Executive.

Trustees’ Annual Report including Director’s Report & Strategic Report (Year Ended 31 March 2017)

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Articles of Association and Mrs K Hinchliff who is retiring under Article 25.

The charity holds an indemnity insurance policy on behalf of its trustees, details of the cost is included in note 10 to the financial statements.

Trustee responsibilities

The Council Members (who are also directors of Kirkwood Hospice for the purposes of company law) are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK GAAP).

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 Trustees are responsible for keeping adequate 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

there is no relevant audit • information of which the charitable company’s auditor is unaware; andthe trustees have taken all • steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting • policies and then apply them consistently;observe the methods and • principles in the Charities SORP 2015 (FRS 102)make judgements and • estimates that are reasonable and prudent;state whether applicable UK • Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;prepare the financial • statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

Student nurses from the University of Huddersfield on placement at Kirkwood.

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The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Objects and mission

statement

The objects for which Kirkwood Hospice is established are to promote the relief of sickness by such charitable means as are considered appropriate; the governing documents define those charitable means in furtherance of those aims. There have been no material changes to these objectives since the last Annual Report.

Kirkwood Hospice provides specialist care free of charge to adults in Kirklees with advanced progressive illnesses at any time

The three elements of the eligibility criteria are:

That patients should have • active, progressive and potentially life-threatening illness.That patients should have • unresolved, complex needs that cannot be met by their current caring team, or it is anticipated that the patient will develop such needs in the near future. These needs may be psychological, social, spiritual or physical.Patients must have been • recently assessed by a member of a specialist palliative care team.

Services provided

Kirkwood Hospice helps local people, with an illness that cannot be cured, to live well and die with dignity and in a way that they choose. We provide services, free of charge,

from diagnosis to the end of life, respecting their individual needs and wishes. Care and support is also provided to their family members, friends and carers, both during the illness and after death. Through education, training and partnership with others the hospice improve care for everyone affected by a life limiting illness.

Public benefit and eligibility criteria

The Charity Commission’s general guidance on public benefit has been used for reference when compiling this report and in planning future developments and activities.

Common eligibility criteria were agreed in the year 2000 by all providers of specialist palliative care (SPC) working in Calderdale and Kirklees in order to ensure equity of access. These criteria reflect those adopted by other SPC services across Yorkshire.

Trustees’ Annual Report including Director’s Report & Strategic Report (Year Ended 31 March 2017) cont.

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to people in Kirklees with life limiting illnesses that focus on their quality of life. We provide care for people with life limiting illnesses including cancer, neurological conditions, advanced heart and lung diseases and dementia. We also provide services to patients’ families, carers and anyone that is important to them.

Most patients use a combination of hospice services as their illness progresses and draw on the specialist skills of Kirkwood’s multi-professional team who work in collaboration with colleagues in all care settings to provide continuity of care. Kirkwood Hospice also provides programmes of education to other professionals who are caring for people with life-limiting illnesses, in this way we seek to improve the quality of care experienced by all people who have palliative care needs.

Our services are continuously monitored, evaluated and

reporting period. With 585 people accessing more than one service.

There were 1,445 patients accessing one or more of the following: Inpatient Admissions, Support and Therapy, Community Palliative Service and Palliative Care Outpatient Clinics. This number of patients has increased from 1,362 (an increase of 6%) in the previous year.

In addition there were 122 carers who accessed the Support and Therapy drop-in services, 127 people who accessed the Lymphoedema service alone, and 470 people who accessed the Family Care Team for pre and post bereavement support and no other service.

The Hospice aims to support people to avoid dying in hospital unless it is necessary or they choose to. During the reporting period, 737 people died whilst under the care of Kirkwood.

reviewed to meet the changing needs of patients and their families. All our services are delivered taking into account all current national guidance and quality statements and standards.

Kirkwood Hospice is regulated by the Care Quality Commission. An inspection was carried out during this accounting period and the rating awarded was ‘Good’ overall with an ‘Outstanding’ rating for Care. More information is available on the Care Quality Commission website (http://www.cqc.org.uk/location/1-115011048). This rating is an endorsement of the quality of care that Kirkwood continues to provide in its 30th year.

Overview of impact for beneficiaries

2,072 people (patients and carers/relatives) directly benefited from a service that Kirkwood provided during the

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Kirkwood Hospice helped to support 89% of these people to die outside hospital.

The experience of our service users

At Kirkwood Hospice we use an online questionnaire to capture feedback from service users. There were 289 surveys completed with 94% of people rating the quality of care received as outstanding or excellent.

Individual services providing public benefit

In-patient careFor patients requiring care and support to address complex problems associated with life- limiting illness. During the accounting period there were 327 admissions to the Inpatient Unit, patients were discharged on 88 occasions, and 231 died at the Hospice, with 9 patients

support for patients at home, and in care homes. During the period the team supported 1,169 patients, an increase of 5% on the previous year. 2,979 home visits and 11,208 phone contacts were made to patients, families and other professionals, which represents an increase of over 25% indicating that patients that are referred to us are needing a lot more support. The Clinical Nurse Specialists also provide advice to health care professionals and deliver education on all aspects of palliative care.

Support and Therapy services continue to be provided at Kirkwood Hospice and at the Rosewood Centre in Dewsbury. A total of 350 people accessed services through the Support and Therapy Centre at Kirkwood. 107 people accessed day services in the year and there were 827 day care attendances. This figure continues to reduce (24%) as more capacity was provided for drop-in attendance

resident in the Hospice at the end of the year. The Hospice accepted 71 admissions on an evening or a weekend, which ensures that these patients are not admitted to Hospital.

24/7 Specialist Palliative Care Advice ServiceHealth Care professionals, patients and their carers contact the Hospice for expert advice at any time of the day or night seven days a week. The aim of this service is to enable more patients to be supported and as their illness progresses to have their needs met as far as possible. A total of 12,116 calls were handled by the advice line, which included 908 calls outside office hours. This is an increase of 16% on the previous year.

Community Palliative Care TeamA team of 8 Kirkwood Clinical Nurse Specialists provide advice on all aspects of pain and symptom control and give emotional and psychological


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and the day therapy capacity was reduced.

187 people accessed Drop-In at Kirkwood for the first time and there were 1,716 follow-up attendances.

Following assessment, Patients and Carers access a range of services that have been designed to meet their individual needs. For example the ‘Braveheart’ programme for patients with chronic heart failure and ‘Breathe Better’ programme for patients with chronic respiratory illnesses are provided in the Support and Therapy Centre along with yoga sessions and complimentary therapy. Lymphoedema follow up clinic This service is run on Mondays each week in partnership with the lymphoedema service provided by Calderdale & Huddersfield NHS Foundation Trust. This year saw 83 patients

Huddersfield NHS Foundation Trust and the Yorkshire Ambulance Service aimed at improving the delivery of palliative and end of life care in all settings. Education is provided for all Hospice employees and volunteers including Trustees.

All aspects of Hospice care are underpinned by the various support service teams and volunteers who provide help at the Hospice, in the Fundraising Department and in the Hospice shops. Volunteers contributed 22,208 hours of their time at the Hospice during the accounting year. In addition 93,611 hours were given by volunteers in the Hospice’s shops.

Planning consultation and communicationThe Executive Management Team, comprising the Chief Executive, Director of Finance and Administration, the Director of Clinical Services, the Consultant in Palliative Medicine

accessing the service on 187 occasions.

Family Care TeamProvides psychological support and counselling for patients and families during their illness and in bereavement. The team’s work includes support for children affected by the death or life-threatening illness of a close family member. The total number of people who accessed the services was 470, slightly up on the previous year, 1,838 counselling sessions for bereaved people took place in the period. The team members also carried out 695 Pre-bereavement contacts within the Hospice.

Education and trainingin palliative and end of life care is provided from other health and social care agencies and also for visiting students. Specific programmes have been developed for professionals who work for Locala Community Partnerships CIC, Calderdale &

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and the Director of Fundraising & Marketing, working within overall strategic objectives and policy guidelines determined by the Trustees, meets weekly. The Chair of the Trustees meets regularly with the Chief Executive and the Executive Management Team attends Trustee and Committee meetings.

All management initiatives involve employees and volunteers in forward planning and there are regular meetings involving the multidisciplinary team, heads of departments and clinical teams. Employee views are sought when operational changes and conditions of service are contemplated. Employees contribute to and regularly receive internal communications and other memoranda to inform them of developments and changes.

The service user forum (‘Kirkwood Future Forum’) continues to meet four times a year. Any patient or carer who has used any hospice service is welcome to attend. The aim of the forum is to

staff enjoy fully the benefits of working for the organisation. In particular, Kirkwood Hospice does not discriminate on the grounds of gender, age, marital status, race, sexual orientation, religion, disability, social or financial status.

Special acknowledgementThe Trustees wish to record their sincere appreciation of the Hospice’s highly committed employees, and all the numerous supporters, for their donations and bequests and to the large number of volunteers who generously give their time, skills and expertise. Kirkwood Hospice has benefited from help received from various organisations including Local GPs, Kirklees Metropolitan Council, our Local Clinical Commissioning Groups (CCGs), Calderdale and Huddersfield NHS Foundation Trust, Mid Yorkshire Hospitals NHS Trust, Locala Community Partnerships CIC and Yorkshire Ambulance Service NHS Trust. The Trustees are also grateful for the generous treatment received from many of their professional advisers.

gain the views of those who have used hospice services and to share ideas for the future development of hospice services. Those attending have provided valuable comments and feedback on a variety of initiatives and quality improvement plans.

Support groups are branches with their own committees whose accounts are incorporated into the annual accounts.The Hospice based volunteers are co-ordinated by an employee responsible to the Director of Finance and Administration, who ensures a framework of support and training similar to that for employees.

Equal opportunitiesKirkwood Hospice is committed to ensuring equality of opportunity for its employees. Kirkwood Hospice believes that selection and promotion should be based solely on ability to meet the requirements of the post. The aim is to provide equal access to jobs and training, and to ensure that all


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Our thanks are also due to all of the local businesses and Charitable Trusts who have generously helped to fund different aspects of the running costs of the Hospice.The Trustees wish to express their appreciation of the substantial contribution made by the late Mr Peter Butler, who sadly died in February of this year. Over the years Mr Butler was a Director of the trading subsidiary of Kirkwood Hospice (Kirkwood Hospice Enterprises Ltd) and provided guidance to help develop the Hospice retail network.

Strategic Report

Review of activitiesThe Consolidated Statement of Financial Activities for the accounting period is detailed on page 41 of the financial statements. A summary of the financial results and the work of Kirkwood Hospice is set out below.

Income generationTotal voluntary income was higher than budgeted expectations. This is due to an exceptional year of higher than expected legacy income. Donations and gifts represent a significant proportion of income, and the involvement of individual and corporate donors, charitable grant making trusts and supporters is greatly valued. Also the generosity of those individuals who remembered Kirkwood in their wills by leaving a legacy to the Hospice is recognised. In the year these legacies totalled £1,238,285.

Resources expendedExpenditure on employee salaries and fees remained within budgeted limits. Resources expended in total increased by £382,742, the cost of the various services is shown at Note 6 to the Accounts.

Summary of financial performance

The Trustees continue to monitor financial performance against budget as the primary key performance indicator.

Income for the accounting • period decreased from £7,083,361 for the year to 31 March 2016 to £6,949,461 for the year to 31 March 2017.Expenditure for the • accounting period increased from £6,317,917 for the year to 31 March 2016 to £6,700,660 for the year to 31 March 2017.The surplus for the • accounting period before taking into account gains and losses on investments amounted to £248,801 compared to last year’s surplus of £765,443.After taking account • the movement in year of unrealised gains on investments of £838,578 the surplus is £1,087,379 compared to last year’s surplus of £436,530. Further details are on page 41.

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Our Strategy

This year has been another important year in the development of Kirkwood Hospice. We have continued to make significant progress against the priorities that were set in our Strategic Plan ‘Let that moment be now’.

The three priorities we are working towards are as follows:

Improving the quality of care delivered and / or the quality of life experienced by service users.

Extending the reach of the Hospice to provide care to more people and engage wider with our community.

Develop our resources and use them wisely.

A. Quality

The reputation of the Hospice is of the highest importance and this is the result of hard work and endeavour over the last 30 years. Our reputation is built on the quality of our services and how we support the quality of life of local people. We will always have quality at the heart of our strategy.

Priorities for 2016/17

We aimed to:

Systematically measure what • matters to patients and carers.

Identify how Kirkwood • Hospice services contribute to the community.

Drive improvement across all • service areas in a way that enhances care delivered.

How we are doing

We supported 2,072 local • people350 people attended sessions • at our Support and Therapy Centre2,979 face to face • appointments were made by our community team327 admissions to the • inpatient unitIncrease in calls to the advice • line12,116 calls to our 24/7 • advice line470 people used our • bereavement serviceCost of patient services in • 2016-17 - £4.3 millionNumber of volunteers that • gave their time was 820Net amount raised from • donations, fundraising, shops and lottery £2.9 million

Changes, developments and achievements during the year:

Supporters

Service Users

Resources

Reach

Qua

lity

Figure 1. Kirkwood Hospice Strategy

A

B

C

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Further embed the ethos • of the Hospice into organisational processes to protect our reputation with local people.

Progress for 2016/17

We have:

Introduced the collection of • Palliative Outcome Scores (POS) and other evidence based measurement scales, which give us a richer understanding of the needs of our patients. Alongside information about the experience of people who use our services, the introduction of these measures helps us to understand the difference we are making to individuals and also identify opportunities for developing our services to better meet the needs of people in the future.

Started a number of • significant service developments this year

of the HospiceEnsured that the ethos • of Kirkwood Hospice is discussed with all employees as part of their annual personal development review, to develop the understanding of the ethos and promote it through every interaction we have with our patients, supporters and partners.

Kirkwood Hospice has been instrumental in continuing to develop the Electronic Palliative Care Coordination System (EPaCCS), which is essentially a shared clinical record for people who have palliative care needs so that the care and support people require is better coordinated and provided in the most effective way. Alongside our partners we now have better information regarding the people we care for so that we are able to meet their needs.

which are aimed at increasing our contribution to the community; we have employed an Admiral Nurse, which will mean that Kirkwood Hospice is helping to meet the needs of people with Dementia as they approach the end of their lives; the ‘Enabling Quality of Life’ project has commenced, which will help people to achieve what is important to them when they are living with a life limiting illness and we have changed the Support and Therapy Centre to focus on the changing needs of our patients and carers.

Delivered our quality • priorities for this year, which included the initiatives above and ensuring that the reporting and management of patient safety incidents continue to meet the needs of our patients, in addition improvement priorities have been identified for all services that contribute to the success

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B. Reach

There is a gap between the number of people who could benefit from the care and support that Kirkwood Hospice can provide and those who access it for different reasons. It remains our priority to reach more people who are living with life limiting illness in order that we can help support their quality of life. While Kirkwood Hospice is very well supported by local people, we need to continue to reach new supporters if we are to achieve our aims.


We aimed to:

Implement plans to increase • the number or people accessing services

Trial a model for co-• ordination of End of Life Care

Make the case to develop •

for people with life limiting illnesses who are approaching the end of their lives, this will result in better coordination of services and although a service model has not been trialled we are on track to introduce a new model in 2018.

Commenced a service that • is targeted at the needs of people living with Dementia, who are approaching the end of their life.

Appointed a market research • company to help us develop our market research. The company completed initial desktop research to pull together all relevant information regarding people who would benefit from using Hospice services and people who might want to support Kirkwood Hospice in different ways.

Other achievements in this area include; providing further

new services to reach more people

Undertake market research • to better understand how the hospice might better engage people who need our services or might support us


We have:

Provided services to 1,445 • patients and families within the year, which is an increase of 6% on the year before.

As part of the Clinical Services • Strategy, developed specific action plans for all our clinical services that underpin the whole strategy and are focussed on engaging better with partners to ensure that as many people as possible access our services.

Achieved an agreement • with local NHS partners to jointly commission services


26

input to the Rosewood Centre in Dewsbury, in particular emotional and spiritual support through our Family Care Team. Following investment we have increased our reach via our website and social media platforms; the number of page views on the www.kirkwoodhospice.co.uk website has increased by 13% and our social media reach has increased by 113% in the same period.

C. Resources

To successfully reach more people and improve the quality of our services we will need to increase our resources in a number of areas; we will need to find more effective ways of generating funds; we need to invest in our workforce to ensure it is capable of meeting future demands; we need to continue to develop our partnerships with other professionals and organisations.


We have: Delivered a surplus for the • second year in a row, before taking into account gains and losses on investments this amounted to £248,801. After taking account the movement in year of unrealised gains on investments the surplus is £1,087,379. The financial position is improving even if legacy income is not included, which was significantly more than budgeted.

Identified a number of • initiatives which will help close the gap between income and expenditure in future years.

Maintained the grant • funding that we receive from the NHS at above 30% of charitable expenditure, prospects for continuing this level of funding have been improved with the agreement to develop a joint


We aimed to: Reduce the budgeted deficit • in comparison to the previous financial year.

Negotiate long term recurrent • funding from the NHS through our two local Clinical Commissioning Groups (CCGs).

Implement new methods • of generating income and discontinue those methods that are not effective

Compare year on year Return • on Investment (ROI) for income generation activities and assess the value for money of our charitable services.

Review the impact of projects • undertaken to improve social and environmental impact.

27

commissioning approach to end of life services for people in Kirklees.

Increased return on • investment from both fundraising and retail activities, delivering more funds to charitable activities. This has largely been achieved as a result of efficiencies that have been implemented and tighter controls on expenditure and as a result of planned investments in these areas. Fundraising return on investment has increased to £2.22 in 2016-17 (for every £1 invested in fundraising, there is £2.22 generated. £1.22 is provided towards charitable expenditure.)

In addition there have been the following notable achievements in the year; we have developed a Postgraduate Certificate in End of Life Care in partnership with the University of Huddersfield, this is now available within their prospectus from 2017 onwards;

carried out to develop the ideas through which we will utilise the funds that were designated following the end of the last financial year. As mentioned earlier in the report, Market research has been commissioned to help validate the projects that we select, and in addition we have committed to the improvement of our IT systems to support clinical care delivered to patients (through the development of fully electronic patient records).

there has been a 6% growth in our community fundraising income; the number of Tribute funds has increased in line with the fundraising strategy, there were 39 funds active at the end of the accounting period valued at £192,096; our key fundraising events delivered growth in income again for example the Midnight Memory Walk generated over £100,000 for the first time; following a review of the canvassing service to increase our lottery membership we have changed suppliers and the number of members being signed up is increasing as a result.

For the first time a HR manager has been added to the team at Kirkwood; as the charity grows and the workforce increases as a result the need to invest in employee relations, support and wellbeing is critical to the future success of the organisation. Chris Newberry is already a well-established member of the team. Finally, a lot of work has been


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Future developments and changes

There are currently around 3,000 people living in Kirklees who are in the last year of their life and have palliative care needs, our ambition is to be able to help them all in one way or another. Whether it is to care and support them directly or through the education and support we provide to other professionals, Kirkwood Hospice is committed to helping as many local people as possible.

The Kirkwood Hospice vision is a world where...

People with life-limiting illnesses, and those who care for them, have free access to the best possible care when they need it.

Everyone works together to ensure these people feel supported to live the best quality of life they can.

Join up Quality initiatives • across the organisation through our Management Team to ensure that Kirkwood develops as a learning organisation.Regularly survey all • employees and volunteers regarding the development of the hospice ethos.

Continue to implement the • ‘Enabling Quality of Life’ approach across all our clinical services to further improve how we support people to achieve what is important to them.

B. Extend our reach


We will:

Work hard to secure the • position of lead commissioner for the coordination of end of life care for people in Kirklees.

As described above, in order to work towards this vision the existing strategic plan identifies three priorities. In 2017-18, our 30th year, we continue to work towards these aims:

A. To provide the best quality of care and quality of life for our patients, their families and carers


We will:

Use the data we are collecting • and work with partners to deliver improvements that matter to patients and their families.

Evaluate all recent service • developments and share the evaluations with partners to evidence the contribution that is made by Kirkwood Hospice.

29

Scope the availability of key • clinical input across 7 days with a view to increasing access for our service users to professionals that will further help meet their needs.

Plan a range of self-• management programmes in the Support & Therapy centre to meet the increased needs of local people e.g. for people with neurological conditions.

Carry out a detailed market • research project during our 30th year to measure the understanding and awareness of Kirkwood and its services from supporters and members of the public, and determine a plan to improve understanding and awareness in the future.

Use the 30th year milestone • as an opportunity to reach out to our wider community and stakeholders with a series of activities and events that will challenge existing

increasing the value of this partnership.

Use the 30th year • celebrations to continue to develop opportunities for income generation with other charities and companies.

Quantify and document • measures for our social and environmental impact so that improvements can be tracked in future years.

Optimise volunteer roles • and systems to maximise the impact of this valuable resource.

Undertake a site feasibility • survey of the main hospice premises to ascertain the work needed to upgrade the site to support the development of our services. The site survey will inform how best to utilise the Designated Project Fund to ensure our premises are fit for the future.

perceptions and highlight the work of the Hospice.

C. Develop our resources and use them wisely


We will:

Continue to increase Return • on Investment for all income generation activities in line with our strategic objectives.

Implement departmental • budgets to ensure effective monitoring of both income and expenditure throughout the organisation, so that further cost efficiencies and income generation opportunities can be identified.

Secure NHS funding for • a longer term based on a formal partnership with our Clinical Commissioners and


30

Begin a project to develop • fully electronic patient records, which will enhance the quality of care we provide to our patients.

The existing strategic plan has been implemented through the development of successive Annual Plans the last of which will run until March 2018. A revised Strategic Plan is required for April 2018 onwards, which will set the direction for Kirkwood Hospice for the next three to five years.

The Board of Trustees and Executive Management Team will work together during 2017-18 to consider the future strategy of the Hospice. It is a collective view that this round of strategic review requires better quality intelligence upon which to base the future strategy of Kirkwood. We will reconfirm the Mission, Vision and Values of Kirkwood as part of the strategic planning

plan. Each part of an integrated business plan is ‘owned’ by the relevant board subcommittees.

For example, the development of the Clinical Services Strategy will continue in light of this analysis and will be progressed with the engagement of all Kirkwood clinical services, and owned by the Clinical Governance Committee.

Reserves

The reserves increased in value by £1,087,379 as shown on page 41 to the financial statements. The Trustees regularly review the reserves of Kirkwood Hospice. To allow the Hospice to be prudently and efficiently managed, and to provide a buffer for uninterrupted service during periods of variation in income and expenditure, the Trustees believe that a general reserve equal to between twelve and sixteen months’ expenditure on charitable activities should

process, to ensure we are in a position to do that we will complete more detailed analysis of our the environment in which we will operate. This analysis will include the following:

Data Analysis – A review of • data that is internally and externally available regarding the development of Hospice services

Market Research – In order • to understand the Hospice’s market, awareness of brand, advertising and target audience

Stakeholder Analysis – An • initial exercise to define the environment in terms of key stakeholders that will need to be revisited when the mission and vision are refreshed

As the strategic analysis is completed and the strategic direction is confirmed in 2017 work will continue to update the separate aspects of the overall

Members of the Multi-Disciplinary Team at Kirkwood.

31

be the aim. This reserve is to be in addition to any significant planned capital expenditure.

The Executive Management Team actively monitors the level of reserves held on a monthly basis when reviewing the monthly management accounts. This information is subsequently reported into Finance and Resources Committee on a quarterly basis.

At the year end this reserve amounted to 16 months expenditure on charitable activities and 10 months on total expenditure, which is after a transfer of £1.5 million to the designated project fund during 2017. The comparative for the year ended 31st March 2016 was also 16 months charitable activity and 10 months total expenditure, after the allocation of £950,000 to the designated project fund. Plans to utilise the designated project fund are referenced on pages 29 (Priorities for 2017/18) and page

Kirkwood Hospice is exposed, in particular those related to the finances and operation and provision of services of the Hospice. In addition the Risk and Audit Committee has oversight of the risk management framework and meets on a quarterly basis.

The Executive Management Team has compiled a risk register which is reviewed at six-monthly intervals. The Trustees and Executive Management Team are satisfied that the systems are in place to mitigate exposure to these risks.

The following tables detail the risks that were reported in the last annual report and the and how the risk rating has changed within the accounting period 2016-17, also the key risks for Kirkwood Hospice at present:

63 (Note 20 narrative).Forecasts of income and expenditure are made annually, the aim being to balance expenditure and income, and the object being to maintain the agreed level of reserves. Contingency plans exist in the event that reserves fall below, or exceed, the estimated reserve requirements.

The Finance & Resources Committee reviews the reserves policy each year. In conducting their review they take into consideration best practice and the guidance issued by the Charity Commissioners. The review is reported to the Hospice Council at its next meeting, and recorded in the minutes.

Risk management and financial instruments

The Trustees and Executive Management Team have assessed, and regularly review, the major risks to which


32

Key Risk at the end of Accounting period 2015-16

Change in risk rating during 2016-17

Commentary

1 The recruitment & retention of Trustees

A number of new Trustees have been appointed during the last two years and in addition the Hospice now has a vice chair which is critical for succession planning when the existing Chair will stand down at the end of 2017. The nominations committee has been responsible for ensuring succession planning and that recruitment drives are targeted to fill known skills gaps. When the new Chair is in position, two Trustees have agreed to become Vice Chairs.

2 The risk that the management of the Hospice is ineffective

A programme of development for all managers and heads of service within the organisation commenced in 2016. This remains a priority for the Hospice and further development will take place in the future.

3 Uncertainty regarding statutory funding

While work continues to consolidate the partnership between Kirkwood and NHS commissioners (CCGs) the grant funding that is received is still at risk until a longer term agreement can be achieved.

4 Reduction in Fundraising non-statutory income

Kirkwood Hospice has a diverse range of income streams in place, however there is still uncertainty regarding the future which presents risk for all income streams.

5 Holding unspent funds at the year-end without explanation

Plans have been developed to ensure that any excess in the charity’s general reserve is invested in future projects that will have a benefit to the people who use our services

33


The key risks for the organisation at present are as follows:


Commentary

1 The recruitment & retention of Executive Management Team members

The members of the Executive Management Team are critical to the achievement of Kirkwood’s objectives. During 2016-17 Garry Wilkinson, Director of Fundraising and Marketing resigned from his post to pursue another role in another charity. Garry has contributed a great deal to the Hospice during his 11 years in the post. This development has given the opportunity to revisit the requirements of the organisation and to recruit a suitable replacement, which has meant a slight delay to the recruitment process. Contingencies have been implemented to manage the transition, until the post holder commences in September 2017.

2 The risk that the management of the Hospice is ineffective

The challenge for the organisation going forward is that the capacity of the wider Hospice management team is realised. The success of Kirkwood Hospice relies on the capability of all managers and heads of service within the organisation. A programme of development has commenced within 2016, which was designed to help transform this team so that they are able to effectively contribute to the development and implementation of the Hospice strategic plans. This remains a priority for the Hospice and further development will take place in the future.

3 Uncertainty regarding statutory funding

One of the main risks to the income that Kirkwood requires is the uncertainty regarding statutory funding. This risk remains given the financial climate within public services. Kirkwood currently receives funding from Clinical Commissioning Groups (CCGs) that represents 30% of all charitable expenditure, there is a real risk of this reducing in the future. There is some security over the grant agreement until 2019. Regular meetings are held with CCG colleagues and we continue to work towards a Joint commissioning agreement, which should give greater certainty to funding in the future, perhaps until 2024.

34

The key risks for the organisation at present continued:


Commentary

4 Reduction in Fundraising non-statutory income

The risk that there is a reduction in non-statutory income remains a key consideration for the charity. The Hospice has a diverse range of income streams in place, and the risks in relation to each income stream are regularly assessed. Through analysis of our existing income streams we have invested in those that will generate the most consistent return. The Director of Fundraising and Marketing is responsible for continually researching new ideas for income generation. We have invested in the development of the Hospice lottery, Hospice events and the retail network, and in the last year have seen an increase in return on investment. Further increases in return on investment are targeted in future.

5 Impact of Government Changes / structure of government

This risk relates to potential changes in the political landscape and to government policy that have implications for any part of the organisation’s operational or strategic direction. Following the decision on Brexit and the recent general election there is uncertainty which may result in policy decisions that have an impact on Kirkwood. The introduction of Fundraising regulation, the apprenticeship levy and the implementation of General Data Protection Regulations (GDPR) are all recent examples of policy changes that have implications for us where strategic and operational plans have had to be adapted as a consequence.

35

Financial Instruments

The Hospice’s principal financial instruments comprise bank balances, an investment portfolio, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the operations of the Hospice and to finance the Hospice’s Services.

Due to the nature of the financial instruments used by the Hospice, there is no exposure to price risk other than that which relates to the investment portfolio. To manage this risk, the Finance and Resources Committee meet at six monthly intervals with the investment managers to review performance in the light of the investment management policy. The Hospice’s approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances,

we have taken all the steps • that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

In approving the Trustees’ Annual Report, we also approve the Strategic Report included therein, in our capacity as company directors.

On behalf of the board

Mr J R SpainTrustee

8th September 2017

the liquidity risk is managed by maintaining credit balances. The Hospice makes use of money market facilities when funds are available.

Trade debtors are managed by the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts falling due.

Disclosure of information to the auditors

We, the Trustees, being directors of the company, who held office at the date of approval of these financial statements as set out above each confirm, so far as we are aware, that:

there is no relevant audit • information of which the company’s auditors are unaware; and


36

Walkers setting off on the annual Midnight Memory Walk in

memory of loved ones.

37

We have audited the financial statements of Kirkwood Hospice for the year ended 31 March 2017 which comprise the Group Statement of Financial Activities, the Group and the Parent Charitable Company Balance Sheet, the Group and the Parent Charitable Company Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’’.

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s

on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the groups and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall

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.

Respective responsibilities of trustees and auditor

As explained more fully in the Trustees’ Responsibilities Statement set out on page 16, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act. Our responsibility is to audit and express an opinion

Independent Auditor’s Report to the members of Kirkwood Hospice (Year Ended 31 March 2017)

38

presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees’ Annual Report6 to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view • of the state of the group’s and the parent charitable company’s affairs as at 31 March 2017, and of the group’s incoming resources and application of resources,

the Strategic Report and the • Trustees Annual Report have been prepared in accordance with applicable legal requirements.

including its income and expenditure, for the year then ended;

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

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

Opinion on other matters prescribed by the Companies Act 2006

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

the information given in • the Trustees’ Annual Report (including the Strategic Report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

Participants at the 2016 Colour Rush are all smiles at Oakwell Hall Country Park.

39

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

the parent charitable • company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

the parent charitable • company financial statements are not in agreement with the accounting records 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.

35 WestgateHuddersfieldHD1 1PA

8th September 2017

Helen Solomons (Senior Statutory Auditor)

For and on behalf of Wheawill & Sudworth Limited, Statutory Auditor

Independent Auditor’s Report to the members of Kirkwood Hospice (Year Ended 31 March 2017) cont.

40

Sarah, Duchess of York, pays a special visit to theSupport & Therapy Centre at Kirkwood to meet service users, employees and volunteers.

41 42

Consolidated Statement of Financial Activities (including income and expenditure account)(Year Ended 31 March 2017)

2017 2016

Unrestricted funds Designated Fixed Asset fund

Designated Project fund Restricted funds Endowment funds Total Total

Note £ £ £ £ £ £ £Income and endowments from:Donations and legacies 2 1,705,789 - - - - 1,705,789 2,272,946Charitable activities 3 1,468,357 - - 30,088 - 1,498,445 1,278,208Other trading activities 4 3,582,023 - - 20 - 3,582,043 3,359,244Investments 5 163,184 - - - - 163,184 172,963

────── ────── ────── ────── ────── ────── ──────Total income and endowments 6,919,353 - - 30,108 - 6,949,461 7,083,361

Expenditure on:Raising funds 6 2,393,786 - - - - 2,393,786 2,472,123Charitable activities 6 4,121,532 155,234 - 30,108 - 4,306,874 3,845,795

────── ────── ────── ────── ────── ────── ──────Total expenditure 6,515,318 155,234 - 30,108 - 6,700,660 6,317,918

Net gains / (losses) on investments 838,009 - - - 569 838,578 (328,913)────── ────── ────── ────── ────── ────── ──────

Net income / (expenditure) 1,242,044 (155,234) - - 569 1,087,379 436,530

Transfers between funds (4,535,030) 3,043,857 1,500,000 (8,827) - - -────── ────── ────── ────── ────── ────── ──────

Net movement in funds 20 (3,292,986) 2,888,623 1,500,000 (8,827) 569 1,087,379 436,530

Reconciliation of funds:Total funds brought forward 20 9,063,283 1,562,825 950,000 16,161 5,083 11,597,352 11,160,822

────── ────── ────── ────── ────── ────── ──────Total funds carried forward 20 5,770,297 4,451,448 2,450,000 7,334 5,652 12,684,731 11,597,352

══════ ══════ ══════ ══════ ══════ ══════ ══════

All income and expenditure derive from continuing activities. The statement of financial activities includes all gains and losses recognised during the year. The notes on pages 47 to 66 form part of these financial statements.

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Consolidated Balance Sheet(Year Ended 31 March 2017)

2017 2016Note £ £

Fixed assetsTangible assets 13 4,451,448 4,639,973Investments 14 6,124,639 5,332,315

────── ──────10,576,087 9,972,288

Current assetsStocks 15 45,313 46,846Debtors 16 1,171,495 794,953Cash at bank and in hand 1,682,424 1,213,563

────── ──────2,899,232 2,055,362

Creditors: amounts falling due within one year 17 (790,588) (430,298)────── ──────

Net current assets 2,108,644 1,625,064────── ──────

Total assets less current liabilities 12,684,731 11,597,352══════ ══════

Charity FundsEndowment funds Permanent endowment 20 5,652 5,083Restricted funds 20 7,334 16,161Unrestricted funds 20 12,671,745 11,576,108

────── ──────Total charity funds 12,684,731 11,597,352

══════ ══════

The financial statements were approved and authorised for issue by the Board on 8th September 2017.

Signed on behalf of the board of Trustees

J R Spain Miss L A ChapmanChairman Trustee

Company registration number: 1645888

The notes on pages 47 to 66 form part of these financial statements.

44

2017 2016Note £ £

Fixed assetsTangible assets 13 4,451,448 4,639,973Investments 14 6,124,739 5,332,415

────── ──────10,576,187 9,972,388

Current assetsStocks 15 12,325 11,469Debtors 16 1,223,888 859,011Cash at bank and in hand 1,653,204 1,168,945

────── ──────2,889,417 2,039,425

Creditors: amounts falling due within one year 17 (780,873) (414,461)────── ──────

Net current assets 2,108,544 1,624,964────── ──────

Total assets less current liabilities 12,684,731 11,597,352══════ ══════

Charity FundsEndowment funds Permanent endowment 20 5,652 5,083Restricted funds 20 7,334 16,161Unrestricted funds 20 12,671,745 11,576,108

────── ──────Total charity funds 12,684,731 11,597,352

══════ ══════

Charity Balance Sheet(Year Ended 31 March 2017)

The financial statements were approved and authorised for issue by the Board on 8th September 2017.

Signed on behalf of the board of Trustees

J R Spain Miss L A ChapmanChairman Trustee

Company registration number: 1645888


45

Consolidated Statement of Cash Flows(Year Ended 31 March 2017)

Group Charity2017 2016 2017 2016

Note £ £ £ £

Cash flow from operating activities 22 292,090 656,586 307,488 643,555────── ────── ────── ──────

Net cash flow from operating activities 292,090 656,586 307,488 643,555

────── ────── ────── ──────Cash flow from investing activitiesPayments to acquire tangible fixed assets (32,667) (117,197) (32,667) (117,197)Payments to acquire investments (994,278) (1,288,653) (994,278) (1,288,653)Receipts from sales of investments 1,040,532 1,143,428 1,040,532 1,143,428Interest received 4,449 1,059 4,449 1,059Dividends received 158,735 171,904 158,735 171,904

────── ────── ────── ──────Net cash flow from investing activities 176,771 (89,459) 176,771 (89,459)

────── ────── ────── ──────Net increase in cash and cash equivalents 468,861 567,127 484,259 554,096

Cash and cash equivalents at 1 April 2016 1,213,563 646,436 1,168,945 614,849

────── ────── ────── ──────Cash and cash equivalents at 31 March 2017 1,682,424 1,213,563 1,653,204 1,168,945

══════ ══════ ══════ ══════

Cash and cash equivalents consists of:Cash at bank and in hand 1,651,713 1,211,939 1,622,493 1,167,321Short term deposits 30,711 1,624 30,711 1,624

────── ────── ────── ──────Cash and cash equivalents at 31 March 2017 1,682,424 1,213,563 1,653,204 1,168,945

══════ ══════ ══════ ══════


46

An explosion of colour at the annual Kirkwood Hospice Colour Rush.

47

(a) General information and basis of preparation Kirkwood Hospice is a registered charitable company limited by guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 9 of these financial statements. The nature of the charity’s operations and principal activities are detailed in the Trustees report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) FundsUnrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds represent those assets which must be held permanently by the charity, principally fixed asset investments. Income arising on

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity. The consolidated statement of financial activities includes the results of the wholly owned subsidiary which operates trading activities in support of the charity.

The statement of financial activities and balance sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis as the subsidiary and parent have identical purpose. No separate statement of financial activities has been presented for the charity as permitted by Section 408 of the Companies Act 2006 and Section 24 of the SORP (FRS102).

The charity has availed itself of Paragraph 4 (1) of Schedule 1 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and adapted the Companies Act formats to reflect the special nature of the charity’s activities.

The significant accounting

Notes to the Consolidated Financial Statements(Year Ended 31 March 2017)

1. Summary of significant accounting policies

48

the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund. (c) Income recognitionAll incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the

the items due to the volume of low value items they are not recognised in the financial statements until they are sold and the income recognised within ‘Income from other trading activities’. The Trustees believe that it is impractical to recognise the goods at fair value upon receipt and have therefore continued to include the income when the goods are sold.

Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset.

Legacy income is recognised when the charity is entitled to the income. Under SORP (FRS 102) it is the earlier of the charity being notified of an impending distribution or the legacy being received or if, before receipt, there is sufficient evidence that it is probable that the legacy will be received and the value of the incoming resources can be measured with sufficient reliability. When the charity has received notification of a legacy but it is not possible to measure the amount expected the legacy is treated as a contingent asset and disclosed. Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when

basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.

The SORP (FRS102) requires gifts in kind donated for resale to be included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impracticable to fair value

49

entitlement has occurred.

The charity receives grants in respect of its charitable activities. Income from grants is recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends and interest when the amount can be measured reliably.

Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established. (d) Expenditure recognitionAll expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

The analysis of these costs is included in note 7.

(f) Tangible fixed assetsTangible fixed assets costing £1,000 or more are capitalised at cost (or deemed cost). Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold landNo depreciation provided

Freehold buildings2% Straight line

Shop fittingsThe lower of the life of the lease or 5 years

Furniture, furnishings and equipment20% Straight line

Computer equipment33⅓% Straight line

Motor vehicles20% Straight line

(g) InvestmentsInvestments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are

Costs of raising funds includes • the cost of commercial trading and their associated support costs;Expenditure on charitable • activities includes the cost of running and maintaining the hospice along with other costs undertaken to further the purpose of the charity and their associated support costs; andOther expenditure represents • those items not falling into the categories above.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

(e) Support costs allocationSupport costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Premises overheads and other overheads have been allocated pro rata to staff cost basis. Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of promoting the charitable activities of the charity.

Notes to the Consolidated Financial Statements(Year Ended 31 March 2017) cont.

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measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the Statement of Financial Activities if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Investments in subsidiaries are measured at cost less impairment.

(h) StocksStocks are stated at the lower of cost and net realisable value. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

(i) Debtors and creditors receivable / payable within one yearDebtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(j) ProvisionsProvisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be

of a charitable company for UK corporation tax purposes.

(n) Going concernThe financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The charity’s business activities together with the factors likely to effect its future performance and development are detailed in the Strategic Report. It is the view of the Trustees that the charity is well placed to manage its business risks successfully. This is evidenced in the financial statements, cash flow and liquidity position as stated in this annual report. In addition the charity has robust policies and procedures for managing its reserves and its financial risk management objectives. The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Therefore they continue to adopt the going concern basis of accounting in preparing the annual financial statements

required in settlement and the amount can be reliably estimated.

(k) LeasesRentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

(l) Employee benefitsWhen employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. The charity also contributes towards a defined benefit plan for the benefit of its qualifying employees. The scheme is held separately from the charity and administered by the National Health Service Pension Scheme. The charge to the Statement of Financial Activities represents the contributions payable by the charity to the two schemes in accordance with the Charity SORP (FRS102). Further details are provided in note 23.

(m) TaxThe charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition

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2. Income from donations and legacies

2017 2016£ £

Donations 467,504 487,530Legacies 1,238,285 1,785,416

────── ──────1,705,789 2,272,946══════ ══════

Income from donations and legacies was £1,705,789 (2016 - £2,272,946) of which £Nil (2016 - £3,130) was attributable to restricted and £1,705,789 (2016 - £2,269,816) was attributable to unrestricted funds. During the year the charity has received a significant amount in legacies, the charity is extremely grateful for these.

The charity benefits greatly from the involvement and enthusiastic support of its many volunteers, details of these are in the annual report. In accordance with FRS 102 and the charity SORP (FRS 102) the economic contribution of general volunteers is not recognised in the accounts.

3. Income from charitable activities

2017 2016£ £

Contractual payments 1,468,357 1,245,874Performance related grants 30,088 32,334

────── ──────1,498,445 1,278,208══════ ══════

Income from charitable activities was £1,498,445 (2016 - £1,278,208) of which £1,468,357 (2016: £1,278,208) was attributable to unrestricted funds and £30,088 (2016: £Nil) was attributable to restricted funds.

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4. Income from other trading activities

2017 2016£ £

Fundraising events 798,210 672,270Lottery 700,522 614,448Shop income 2,083,311 2,072,526

────── ──────3,582,043 3,359,244══════ ══════

Income from other trading activities was £3,582,043 (2016 - £3,359,244) of which £3,582,023 (2016: £3,359,244) was attributable to unrestricted funds and £20 (2016: £Nil) was attributable to restricted funds.

5. Income from investments

2017 2016£ £

Investment income 158,735 171,904Interest 4,449 1,059

────── ──────163,184 172,963

══════ ══════

Income from investments was £163,184 (2016 - £172,963) all of which was attributable to unrestricted funds.

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6. Analysis of expenditure

Staff Costs Other costs Depreciation Support costs Total

£ £ £ £ £

Raising fundsMerchandising 746,921 704,220 51,678 5,459 1,508,278Lottery 57,668 237,230 - 1,072 295,970Fundraising 291,639 166,454 - 110,652 568,745Investment - - - 20,793 20,793

────── ────── ────── ────── ──────1,096,228 1,107,904 51,678 137,976 2,393,786══════ ══════ ══════ ══════ ══════

Charitable activitiesInpatient care 2,266,370 176,917 10,629 684,528 3,138,444Support & Therapy Centre 269,285 20,277 1,137 84,046 374,745Community Palliative Care 354,601 13,007 - 120,267 487,875Family Care Team 147,022 4,038 - 45,791 196,851Information and education 77,510 6,354 - 25,095 108,959

────── ────── ────── ────── ──────3,114,788 220,593 11,766 959,727 4,306,874══════ ══════ ══════ ══════ ══════

Support costsPersonnel & volunteers 52,992 4,400 - (57,392) -Finance & information 97,025 30,609 2,514 (130,148) -Administration 421,929 248,312 - (670,241) -Depreciation - - 155,234 (155,234) -

────── ────── ────── ────── ──────571,946 283,321 157,748 (1,013,015) -

══════ ══════ ══════ ══════ ══════

────── ────── ────── ────── ──────Total Resources Expended 4,782,962 1,611,818 221,192 84,688 6,700,660

══════ ══════ ══════ ══════ ══════

Expenditure on raising funds was £2,393,786 (2016 - £2,472,123) all of which was attributable to unrestricted funds. Expenditure on charitable activities was £4,306,874 (2016 - £3,845,795) of which £30,108 (2016 - £22,661) was attributable to restricted and £4,276,766 (2016 - £3,792,689) was attributable to unrestricted funds.

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7. Allocation of support costs

Personnel & Volunteers

Finance & information Administration Depreciation Total

£ £ £ £ £

Raising funds 4,914 11,143 57,382 13,290 86,729In-patient care 38,184 86,591 445,926 103,280 673,981Support & Therapy Centre 4,537 10,288 52,984 12,272 80,081Community Palliative Care 5,974 13,548 69,770 16,160 105,452Family Care Team 2,477 5,617 28,928 6,700 43,722Information and education 1,306 2,961 15,251 3,532 23,050

────── ────── ────── ────── ──────57,392 130,148 670,241 155,234 1,013,015

══════ ══════ ══════ ══════ ══════

8. Investment management costs

2017 2016£ £

Investment manager fees 20,761 25,516────── ──────

All of the above costs are attributable to unrestricted funds and included within raising funds costs.

9. Governance costs

2017 2016£ £

Auditor’s remuneration 12,305 12,346Staff costs - 18,099

────── ──────12,305 30,455

══════ ══════

All of the above costs are attributable to unrestricted funds and are included within support costs. Included with the audit fee is £1595 (2016 - £1625) for the audit of the trading subsidiary.

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10. Net income/(expenditure) for the year

Net income/(expenditure) is stated after charging / (crediting):

2017 2016£ £

Depreciation of tangible fixed assets 221,192 242,850

Operating lease rentals: Land and buildings 231,959 185,668 Plant and equipment 36,905 17,910

Trustees indemnity insurance 871 1,152

(Profit) / loss on fair value movement of investments (838,578) 328,913══════ ══════

11. Trustees’ and key management personnel remuneration and expenses

The Trustees neither received nor waived any remuneration during the year (2016: £Nil).

The Trustees did not have any expenses reimbursed during the year (2016 - £Nil).

The total amount of employee benefits received by key management personnel is £396,771 (2016 - £353,834). The Trust considers its key management personnel comprises the Chief Executive, the Director of Finance and Administration, the Director of Clinical Services, the Consultant in Palliative Medicine and the Director of Fundraising & Marketing.

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12. Staff costs and employee benefits

The average monthly number of employees and the full time equivalent (FTE) during the year was as follows:

2017 2016Average FTE Average FTE

£ £ £ £

Nursing & medical 108 64 114 65Education 3 3 2 2Catering & domestic 21 13 22 14Administration 24 19 24 17Fundraising 90 54 92 56

────── ────── ────── ──────246 153 254 154

══════ ══════ ══════ ══════

The total staff costs and employee benefits were as follows:

2017£ £

Wages and salaries 4,006,547 3,852,236Social security 326,212 262,217Defined contribution pension costs 282,092 263,594Consultancy and temporary staff fees 168,111 172,044

────── ──────4,782,962 4,550,091══════ ══════

The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows:

2017 2016Number Number

£60,001 - £70,000 2 2£70,001 - £80,000 1 1

────── ──────3 3

══════ ══════

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13. Tangible fixed assets – Group and Charity

Freehold land and buildings

Furniture, furnishings, vehicles and equipment

Total

£ £ £

Cost:At 1 April 2016 5,412,449 1,748,080 7,160,529Additions - 32,667 32,667

────── ────── ──────At 31 March 2017 5,412,449 1,780,747 7,193,196

══════ ══════ ══════Depreciation:At 1 April 2016 1,011,526 1,509,030 2,520,556Charge for the year 107,970 113,222 221,192

────── ────── ──────At 31 March 2017 1,119,496 1,622,252 2,741,748

══════ ══════ ══════Net book value:At 31 March 2017 4,292,953 158,495 4,451,448

══════ ══════ ══════

At 31 March 2016 4,400,923 239,050 4,639,973══════ ══════ ══════

Included within freehold land & buildings is non-depreciable freehold land amounting to £21,000 (2016: £21,000). The Trustees believe that it is not practical to quantify any difference between the cost of freehold land and buildings and the fair value.

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14. Fixed asset investments

Listed investments

TotalGroupUnrestricted

fundsEndowment

funds£ £ £

Valuation:At 1 April 2016 5,327,232 5,083 5,332,315Additions 994,278 - 994,278Disposals (826,143) - (826,143)Revaluation 623,620 569 624,189

────── ────── ──────At 31 March 2017 6,118,987 5,652 6,124,639

══════ ══════ ══════Cost:At 31 March 2017 4,623,397 3,361 4,626,758

══════ ══════ ══════At 31 March 2016 4,455,262 3,361 4,458,623

══════ ══════ ══════

Investments at fair value comprise: 2017 2016£ £

Equities 4,130,171 3,500,234Securities 1,994,468 1,832,081

────── ──────6,124,639 5,332,315══════ ══════

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14. Fixed asset investments (continued)

Listed investments Equity investment

in subsidiary undertaking Total

Charity Unrestricted funds

Endowment funds

£ £ £ £Valuation:At 1 April 2016 5,327,232 5,083 100 5,332,415Additions 994,278 - - 994,278Disposals (826,143) - - (826,143)Revaluation 623,620 569 - 624,189

────── ────── ────── ──────At 31 March 2017 6,118,987 5,652 100 6,124,739

══════ ══════ ══════ ══════Cost:At 31 March 2017 4,623,397 3,361 100 4,626,858

══════ ══════ ══════ ══════At 31 March 2016 4,455,262 3,361 100 4,458,723

══════ ══════ ══════ ══════

Investments at fair value comprise: 2017 2016£ £

Equities 4,130,171 3,500,234Securities 1,994,468 1,832,081Group undertakings 100 100

────── ──────6,124,739 5,332,415══════ ══════

The fair value of listed investments is determined by reference to the quoted price for identical assets in an active market at the balance sheet date.

Investments in group undertakings are measured at cost less impairment on the basis that they represent shares in entities that are not publicly traded and the fair value cannot otherwise be measured reliably.

The charity’s equity investment in subsidiary undertaking is a 100% holding in the ordinary share capital of Kirkwood Hospice Enterprises Limited, a company incorporated in England & Wales (company number 7368034). The charity holds 100 shares of £1 each, these are the only shares allotted, called up and fully paid.

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14. Fixed asset investments (continued)

It pays all of its profits to the charity under the gift aid scheme. Kirkwood Hospice Enterprises Limited operates all commercial trading activity as fundraising in support of the charity. A summary of the trading results is shown below:

2017 2016£ £

Turnover 167,511 187,771Cost of sales and administration costs (131,894) (136,979)

────── ──────Net profit 35,617 50,792Amount gift aided to the charity (35,617) (50,792)

────── ──────Retained in the subsidiary - -

══════ ══════

The assets and liabilities of the subsidiary were:

Current assets 64,782 81,536 Current liabilities (64,682) (81,436)

────── ──────Total net assets 100 100

══════ ══════

Aggregate share capital and reserves 100 100══════ ══════

15. Stocks

Group Charity2017 2016 2017 2016

£ £ £ £

Catering & housekeeping 4,715 5,094 4,715 5,094Medical supplies 7,156 6,375 7,156 6,375Shop and fundraising goods 33,442 35,377 454 -

────── ────── ────── ──────45,313 46,846 12,325 11,469

══════ ══════ ══════ ══════

Stock held is for use to further the charity’s activities or for sale in the charity and gift shops.

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16. Debtors

Group Charity2017 2016 2017 2016

£ £ £ £

Trade debtors 150,336 237,396 147,662 235,855Amounts owed by group undertakings - - 55,067 65,599Prepayments and accrued income 308,063 275,412 308,063 275,412Legacies notified in advance 713,096 282,145 713,096 282,145

────── ────── ────── ──────1,171,495 794,953 1,223,888 859,011══════ ══════ ══════ ══════

17. Creditors: amounts falling due within one year

Group Charity2017 2016 2017 2016

£ £ £ £

Trade creditors 399,198 155,753 391,067 141,530Other tax and social security 88,537 3,075 88,537 3,075Accruals 236,731 198,729 235,147 197,115Deferred income (note 19) 66,122 72,741 66,142 72,741

────── ────── ────── ──────790,588 430,298 780,873 414,461

══════ ══════ ══════ ══════

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18. Leases

Total future minimum lease payments under non-cancellable operating leases are as follows:

Group Charity2017 2016 2017 2016

£ £ £ £

Not later than one year 234,975 219,382 227,975 219,382Later than one and not later than five years 578,347 568,882 550,347 568,882Later than five years 259,667 256,583 233,417 256,583

────── ────── ────── ──────1,072,989 1,044,847 1,011,739 1,044,847══════ ══════ ══════ ══════

19. Deferred income – Group and Charity

Under 1 Year Over 1 Year Total

£ £ £

At 1 April 2016 72,741 - 72,741Additions during the year 66,122 - 66,122Amounts released to income (72,741) - (72,741)

────── ────── ──────At 31 March 2017 66,122 - 66,122

══════ ══════ ══════

Income has been deferred which has been received in advance for future lottery draws.

20. Fund reconciliation

Unrestricted Funds

Balance at 1 April

2016 Income Expenditure TransfersInvestment

gains

Balance at 31 March

2017

£ £ £ £ £ £

Unrestricted 9,063,283 6,919,353 (6,515,318) (4,535,030) 838,009 5,770,297Designated Fixed Asset fund 1,562,825 - (155,234) 3,043,857 - 4,451,448Designated project fund 950,000 - - 1,500,000 - 2,450,000

────── ────── ────── ────── ────── ──────11,576,108 6,919,353 (6,670,552) 8,827 838,009 12,671,745══════ ══════ ══════ ══════ ══════ ══════

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20. Fund reconciliation (continued)

Restricted Funds

Balance at 1 April

2016 Income Expenditure TransfersInvestment

gains

Balance at 31 March

2017

£ £ £ £ £ £

Restricted fixed asset fund 16,161 - - (8,827) - 7,334Share and Care fund - 15,020 (15,020) - - -Breathe Better fund - 15,088 (15,088) - - -

────── ────── ────── ────── ────── ──────16,161 30,108 (30,108) (8,827) - 7,334

Endowment 5,083 - - - 569 5,652────── ────── ────── ────── ────── ──────

21,244 30,108 (30,108) (8,827) 569 12,986══════ ══════ ══════ ══════ ══════ ══════

Fund descriptions

a) Unrestricted fundsThe general funds are available for the use at the discretion of the charity in furtherance of the general objectives as detailed in the Trustees report.

b) Designated fundsKirkwood Hospice has clear policy and procedures to guide its management of reserves. The policy clarifies in more detail that the Hospice will hold designated funds to provide for specific future projects that are unlikely to be met by future income alone.

A review of the financial position as at 31 March 2017 confirmed that the general reserve was 20 months of charitable expenditure, which equated to the Hospice holding £1.5million in excess of their reserves policy. As a result of this position the £1.5 million was transferred to the designated project fund. It should be noted that £950,000 was transferred to this fund during 2016 and since this time the Hospice has been developing plans to allocate the fund to ensure that it maximises the benefit towards its strategic aims and ultimately facilitates the furtherance of the charities objectives. Further details of these proposed plans can be viewed on page 29 (Strategic Report – 2017/18 priorities).

The fixed asset designated fund comprises assets which were purchased to further the aims of the charity and are not considered to be restricted assets. c) Restricted fundsThe restricted fixed asset fund includes restricted income which has been received for equipment for the charity.

Share and Care is an initiative comprising of a three week course, offering help and support to individuals who are caring for someone who has a life-limiting illness. The share and care fund is made up of a grant received to fund the share and care project, a project which has partially funded the salary cost of a nurse.

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20. Fund reconciliation (continued)

Fund descriptions (continued)

Breathe Better is a course for patients with a diagnosis of Chronic Respiratory Disease and their carers. The course provides advice, information and support to help manage their condition.

d) Endowment fundsThe endowment fund is made up of investments transferred to the charity on condition that the capital should be retained and the income generated either retained or used to support the charities general activities, income generated by the endowment fund is considered to be unrestricted income.

21. Analysis of group net assets between funds

Unrestricted funds

Designated funds

Restricted funds

Endowment funds Total

£ £ £ £ £

Fixed assets 6,118,987 4,451,448 - 5,652 10,576,087Cash & current investments 725,090 950,000 7,334 - 1,682,424Other current assets 1,216,808 - - - 1,216,808Current liabilities (790,588) - - - (790,588)

────── ────── ────── ────── ──────Total 7,270,297 5,401,448 7,334 5,652 12,684,731

══════ ══════ ══════ ══════ ══════

General Reserves 2017 2016£ £

Unrestricted funds 7,270,297 9,063,283Invested in tangible fixed assets - (3,020,836)Unrealised (gains) on investments (1,497,166) (871,970)

────── ──────5,773,131 5,170,477══════ ══════

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22. Reconciliation of net income to net cash flow from operating activities

Group Charity2017 2016 2017 2016

£ £ £ £

Net income for year 1,087,379 436,530 1,087,379 436,530

Interest receivable (4,449) (1,059) (4,449) (1,059)Dividends receivable (158,735) (171,904) (158,735) (171,904)Depreciation of tangible fixed assets 221,192 242,850 221,192 242,850(Gains) / losses on investments (624,189) 372,538 (624,189) 372,538(Profit) on disposal of fixed asset investments (214,389) (43,625) (214,389) (43,625)Decrease / (increase) in stock 1,533 (1,812) (856) (1,741)(Increase) in debtors (376,542) (154,872) (364,877) (163,275)Increase / (decrease) in creditors 360,290 (22,060) 366,412 (26,759)

────── ────── ────── ──────Net cash flow from operating activities 292,090 656,586 307,488 643,555

══════ ══════ ══════ ══════

23. Pensions and other post-retirement benefits

Employees of the charity are entitled to join either the NHS Pensions Scheme (eligible employees only), or the Kirkwood Hospice Stakeholder Pension Plan.

NHS Pension SchemeEligible employees are able to remain in the NHS Pensions Scheme as if they were still in the employment of an employing authority. The NHS Pension Scheme is an unfunded occupational pension scheme backed by the Exchequer, which is open to all NHS employees and employees of approved organisations. The scheme provides pensions, in varying circumstances for employees of participating employers. The scheme receives contributions from employers and employees to defray the costs of pensions and other benefits. The scheme is subject to a full actuarial valuation every four years and an accounting valuation every year. Details of benefits payable, and the basis for valuations under these provisions can be found on the NHS Pensions website at www.nhsbsa.nhs/pensions. The scheme is accounted for as a multi employer scheme under the Charity SORP (FRS102) and, as no surplus or deficit is able to be identified and allocated to the separate employer, the contributions have been accounted for as a defined contribution scheme and no share of the surplus or deficit included in these financial statements.

In the year ended 31 March 2017, the charity made contributions to the NHS Pension Scheme totalling £207,849 (2016 - £189,390). Employer contributions were 14.38% and employee contributions were in the range of 5% to 13.5% of pensionable pay.

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23. Pensions and other post-retirement benefits (continued)

Other Pension SchemesOther employees are entitled to join the AEGON - Kirkwood Hospice Stakeholder Pension Plan, which is a defined contribution scheme. The contribution rates for this scheme are 7.5% of pensionable pay for the employer and 6% of pensionable pay for the employee. New employees are Auto-enrolled if eligible into this scheme, the contribution rates being 1% for the employer and 1% for the employee. The employee then has the option to increase their contributions to 6% if they so wish. In the year ending 31 March 2017, the charity paid contributions to the schemes totalling £74,243 (2016: £74,204).

The contributions are allocated to unrestricted funds.

24. Contingent asset

At the year end the charity had 3 legacies confirmed which the Trustees believe are unable to be measured reliably as the solicitors at present are unable to quantify the value of the proposed estates.

25. Related party transactions

During the year donations totalling £2,086 (2016 - £2,676), excluding the value of donated goods, were received from Trustees, none of these had conditions attached.

The charity is controlled by the Trustees. No one Trustee has ultimate control.

01484 557900

facebook.com/kirkwoodhosp

@KirkwoodHospice

www.kirkwoodhospice.co.uk

Kirkwood Hospice is an independent hospice and a Registered Charity (Number 512987).

Company Limited by Guarantee in England No. 1645888

Annual Report 2016-2017 - Kirkwood Hospice · Consultant in Palliative Medicine Director of...

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Transcript of Annual Report 2016-2017 - Kirkwood Hospice · Consultant in Palliative Medicine Director of...