Annual Report 2015/16 - Kirkwood Hospice › uploads › files › Kirkwood_Hospi… · This document, setting out the Annual Report and Accounts, provides information on a year of

Annual Report2015/16

““

The staff are so helpful and considerate. They put you at ease straight away. The atmosphere is so welcoming for family and friends.

Anonymous feedback from our Patient Experience Survey

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Contents

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Charity Reference and Administrative Details

Chairman and Chief Executive’s Joint Report

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

Independent Auditor’s Report

Consolidated Statement of Financial Activities

Consolidated Income and Expenditure Account

Consolidated Balance Sheet

Charity Balance Sheet

Consolidated Statement of Cash Flows

Notes to the Financial Statements

“ “Communication and listeningskills are as vital in this environment as your clinical skills.

Senior Staff Nurse Anna-Marie Wilkinson

Adding life to daysSenior Staff Nurse, Anna-Marie Wilkinson, tells us what it’s like to be a nurse on the Hospice’s In-Patient Unit.

What gives you the most satisfaction in your role?I have developed so many skills in my time at Kirkwood. Communication and listening skills are as vital in this environment as your clinical skills. Being able to use those skills each and every day to provide the best care is an amazing thing.

What if the Hospice didn’t exist?We wouldn’t be able to continue adding life to days. I feel that the Hospice is invaluable. To me, it is a little piece of heaven.

WATCH: Our nursing team discuss life at Kirkwood Hospice on International Nurses’ Day. You can watch the video at our website: www.kirkwoodhospice.co.uk

What is a typical day like for a Kirkwood Nurse?Most days are busy. We never know who will be coming through the door and what challenges we will face, but I hardly ever walk out at the end of a shift without a smile.

What is the most important part of what you do?It might sound obvious, but it’s making the patient and their family feel like they are the only people that matter. Even if you have nine other patients that day, they should feel like they are your whole world. Working here at Kirkwood enables us to give the patient our full-time and attention and to put them first.

What is it like being part of the clinical team?I am so lucky to have an amazing team around me who are committed to providing holistic care. They enable us to ensure that promises we make to patients are fulfilled. That is something I am very proud of.

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512987

1645888

Mr B F AinsworthMrs J BradyMiss L ChapmanMr J C DenhamMr K DunningMrs S GalvinMr D N HarlingMr C J HatfieldMrs C J McGowanMrs K J MeighMr J C PhilpottMr P R SandsMr J R Spain

Mr D N Stocks

Mr J R Spain

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

Charity registration number

Company registration number

Trustees

Life President

Chairman

Executive Management TeamChief ExecutiveDirector of Clinical ServicesConsultant in Palliative MedicineDirector of Fundraising and MarketingDirector of Finance and Administrationand Company Secretary

Charity Reference and Administrative DetailsYear Ended 31 March 2016

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21 Albany RoadDaltonHuddersfieldHD5 9UY

Wheawill & Sudworth LimitedChartered Accountants35 WestgateHuddersfieldHD1 1PA

Schofield Sweeney72 New North RoadHuddersfieldHD1 5NW

Lloyds TSB Bank plc1 WestgateHuddersfieldHD1 2DN

Investec Wealth & Investment LimitedQuayside HouseCanal WharfLeeds LS11 5PU

Registered office

Auditor

Solicitor

Bankers

Investment managers

This document, setting out the Annual Report and Accounts, provides information on a year of change and expansion in the work of Kirkwood Hospice. It also details the significant impact the Hospice is delivering for local people..

As Kirkwood approaches its 30th anniversary of providing high quality care and support to dying people in Kirklees, the scope of services continues to evolve and expand. This year has been the second of the Hospice’s current three-year strategy: Let That Moment Be Now. The organisation has been required to adapt its plans during this period, as circumstances dictated, whilst remaining within the overall framework.

The highest priority for Kirkwood is always the provision of excellent services. The Hospice has reached increased numbers this year, aided by the extension of community specialist palliative nursing services in the North Kirklees area. It has been essential for us to maintain our standards of care whilst meeting this increased need. From the feedback that patients and carers are routinely providing, we are confident that this has been achieved. This valuable information also helps to inform our teams and shape future service provision.

A specific area of development in this period has been the enhanced focus on the needs of those affected by dementia, whether they are patients, carers, families, Hospice staff, supporters or volunteers. This aspect of work will continue to develop in the coming years.

As demand and complexity of need continue to increase, the requirement to safeguard and wisely

Chairman and Chief Executive’s Joint Report

use resources is paramount. We continue to plan our resources for sustaining and developing services in a prudent way. We have also kept our ways of working under scrutiny to ensure they remain appropriate to our patients’ needs, but are not wasteful of our funds and resources. Our funding position remains relatively strong, despite continuing financial pressures in the healthcare sector and in society in general. However, part of this success has been supported by a surge in the value of legacies received in 2015-16, which is difficult to predict and may not always be sustainable in succeeding years. The Board and Executive Team are confident that the level of reserves is appropriate for our expenditure. However, as the retention of a high level of reserves is not always the best course of action, the Board and Executive Team are in the process of identifying suitable project expenditure to ensure those in our care benefit from the increase in legacy income.

“We advise charities that they should spend their money, and at the same time they must have adequate reserves, so it is quite a hard act for them to follow.”

Charity Commission Chair

In a broader context, charities have come under considerable scrutiny in the last year. High profile cases have been the subject of parliamentary select committees and legislation has brought in increased regulation of the charity sector. In particular, some methods of fundraising and sustaining financial resources have generated adverse publicity. In anticipation and response to these events, the Trustees of Kirkwood have

enhanced the charity’s governance arrangements. Kirkwood has also reviewed its fundraising methods and the policies that govern them and we remain confident that these provide appropriate guidance.

2015-16 has seen continued development of relationships with partner organisations, in particular the Clinical Commissioning Groups, the Acute Hospital Trusts and community provider. At the same time, education services provided to all local health and social care providers has been maintained and enhanced where appropriate.

Finally, the Trustees and Executive Management Team wish to record their sincere appreciation of all the excellent Hospice employees, in particular our retiring Matron, Gill Hinchliffe, and of all our many volunteers, supporters and stakeholders. This support is further detailed in the Report. A significant loss to the Board of Trustees has been the stepping down of Neville Sheard after 28 years as a Trustee, including 17 as Chair. Successive groups of Trustees and Managers have benefitted from his tremendous efforts and wise counsel, particularly from his legal expertise. He is greatly missed at the Board. We wish him well for the future and look forward to his continuing support in the future of Kirkwood.

John Spain Michael CrowtherChair of Trustees Chief Executive

September 2016

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Pictured: Michael Crowther (L) and John Spain

““The staff are very kind. Everyone, from

nurses to cleaning staff are so very helpful and supportive. The care that is given is the best we have ever experienced.


Trustees’ Annual ReportIncluding Directors Report and Strategic ReportYear Ended 31 March 2016

The Trustees present their report and the audited financial statements of the charity for the year ended 31 March 2016. 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.

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 2016, the Council of Management comprised 13 Trustee members who meet four times per annum. There are committees dealing with Clinical Governance, Finance and Resources, Income Generation and Marketing, Nominations, Risk and 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 their 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.

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 AinsworthMrs J BradyMiss L ChapmanMr J C DenhamMr K DunningMrs S GalvinMr D N Harling Appointed 17 July 2015Mr C J HatfieldMrs C J McGowan Appointed 17 July 2015Mrs K J MeighMr J C Philpot t Appointed 17 July 2015Mr P R Sands Appointed 17 July 2015Mr J N Sheard Resigned 14 September 2015Mr J R Spain

Members retiring by rotation in accordance with the Articles of Association are Mrs S Galvin, Mrs K Meigh, Miss L Chapman and Mr K Dunning.

All the above retiring members, with the exception of Mrs K Meigh, being eligible offer themselves for re-election. In addition Mr J C Hatfield will be retiring as a Director on 10 October 2016. The Directors and Management Team would like to express their thanks for the contribution made by Chris Hatfield and Kirsty Meigh over their many years of service.

The charity holds an indemnity insurance policy

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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 Report of the Council of Management and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and 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

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.

Objectives and activities

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 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 improves care for everyone affected by a life-limiting illness.

Public benefit statement

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.

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 provides services free of charge to people with life-limiting illness which focuses on their quality of life.

Hospice services are continuously monitored, evaluated and reviewed to meet the changing

needs of patients and their families. We provide care for people with life-limiting illnesses including cancer, neurological conditions, advanced heart and lung diseases and dementia. The reviews take into account all current national guidance and quality statements and standards including the Government’s End of Life Care Strategy, (2008), which was refreshed in 2013. The Guidance on Improving Supportive and Palliative Care for Adults with Cancer (2004) produced by the National Institute for Health and Clinical Excellence (NICE) and the quality statements included in the NICE End of life care standards for adults (2011). 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 from a range of care settings and agencies to provide continuity of care.

Overview of impact on beneficiaries

There were 2,046 people (patients and carers/relatives) who benefited from a service that Kirkwood provided during the reporting period, with 451 people accessing more than one service.

There were 1,362 patients accessing one or more of the following: In-Patient Admissions, Support and Therapy, Community Palliative Care Service and Palliative Care Out-Patient Clinics. This number of patients has increased from 1,090 (25%) in the previous year.

In addition there were 119 carers who accessed Support and Therapy Drop-In services, 127 people who accessed the Lymphoedema service alone, and 438 people who accessed the Family Care

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25% more patients accessed our services in

2015-16 compared to the previous 12 months

341 The increase in number of

individuals from North Kirklees who accessed our services

0 300 600 900 1200 1500

2015-16

2014-15

Team for pre and post-bereavement support and no other service.

During the reporting period 725 people died whilst under the care of Kirkwood. The Hospice hopes to support people to avoid dying in Hospital unless it is necessary or they choose to. All but 77 (11%) people were supported to die outside Hospital. In the previous reporting period 499 people died whilst under the care of Kirkwood. All but 49 (10%) people were supported to die outside Hospital.

The experience of our service users

In May 2015 we started to use an online questionnaire to capture feedback from Hospice service users. There were 202 surveys completed with 95% of people rating the quality of care received as outstanding or excellent.

Individual services providing public benefit

In-Patient Care: for patients requiring care and support to address complex problems associated with a life-limiting illness. During the accounting period there were 368 in-patient admissions, patients were discharged on 106 occasions, and 245 died at the Hospice, with 12 patients resident in the Hospice at the end of the year. The service was enhanced to accept admissions on an evening or a weekend. The Hospice accepted 70 admissions of this type, which otherwise would have resulted in the patient being admitted to Hospital.

24/7 Specialist Palliative Care Advice Service: Healthcare professionals, patients and carers may


contact the Hospice for advice at any time of the day or night, seven days a week. The aim of this service is to enable patients to be cared for and, as their illness progresses, to die in the place of their choice. A total of 10,469 calls were handled by the Advice Line, which included 724 calls outside office hours.

Community Palliative Care Team: During the reporting period the team of Clinical Nurse Specialists grew from four to eight as the service was expanded to meet the needs of people in North Kirklees. Clinical Nurse Specialists provide advice on all aspects of pain and symptom control and give emotional and psychological support for patients at home, and in care homes. During the period the team supported 1,113 patients. 2,428 home visits and 9,492 phone contacts were made to patients, families and other professionals. The Clinical Nurse Specialists also provide advice to healthcare professionals and deliver education on all aspects of palliative care.

Support and Therapy Day Attendance and Drop-In Service: continue to be provided at Kirkwood Hospice and at the Rosewood Centre in Dewsbury. At Kirkwood 141 people accessed day services in the year and there were 918 day care attendances. This figure has reduced from the previous year as more capacity was provided for Drop-In attendance and the Day Therapy capacity was reduced from 3 days per week to 2 days per week in May 2015.

190 people accessed Drop-In at Kirkwood for the first time and there were 1,555 follow-up attendances.

Yoga sessions, ‘Braveheart’ programme for patients with chronic heart failure and ‘Breathe Better’ programme for patients with chronic respiratory illnesses are also held in the Support and Therapy Centre.

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 75 patients accessing the service on 218 occasions.

Family Care Team: Members provide psychological support and counselling for patients and families during the illness and in bereavement. The team’s work incorporates support for children affected by the death or life-threatening illness of a close family member and 2,008 counselling sessions for bereaved clients took place in the accounting period. The team members also carried out 646 pre-bereavement contacts within the Hospice.

Education and training in palliative and end-of-life care is provided for all Hospice staff, volunteers including Trustees, staff from other health and social care agencies and also for visiting students. Essential communication skills programmes were planned and delivered to meet the specific needs of professionals and support staff working in the community, hospitals and care homes in Kirklees.

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 28,560 hours of

their time at the Hospice during the accounting year. In addition over 90,000 hours were given by volunteers in the Hospice’s shops.

Planning consultation and communication

The Executive Management Team, comprising the Chief Executive Officer, Director of Finance and Administration, the Director of Clinical Services, the Consultant in Palliative Medicine and the Director of Fundraising and Marketing, working within overall strategic objectives and policy guidelines determined by the Trustees, meets weekly. The Chairman of the Trustees meets regularly with the Chief Executive Officer 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 multi-disciplinary 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 Hospice engages with employees regularly and values their opinions and feedback through the participation of an annual Staff Survey.

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 gain the views of those who have used hospice services and to share ideas for the

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118,560 hours were donated by our

volunteers in 2015/16

Almost 25% of our patients’ primary

diagnosis was non-cancer related in 2015/16

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 opportunities

Kirkwood 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 staff enjoys 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 acknowledgement

The 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.

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.

All new employees and volunteers who have joined the team are warmly welcomed. Our sincere thanks go to those who have left for the contribution which they made to Hospice care with good wishes to them all. Particular mention must be made of the considerable contribution made by Matron Gill Hinchliffe, who retired in March 2016 after 29 years of care to the patients of Kirkwood. Gill commenced work at Kirkwood in 1987 as an In-Patient Unit nurse, giving unstinting service as nurse, sister and matron. Gill provided a strong thread of continuity from the inception of Kirkwood to the present and we wish Gill and her family well for the future.

As part of succession planning arrangements, the skills and experience of the Trustees has continued to be reviewed, and the programme of Trustee recruitment to maintain and balance the skills of the Trustee Board has continued. Trustee induction and continuing information and update sessions have taken place.

Strategic Report

Changes, developments and achievements during the year

In 2015-16 work commenced on the Strategic Priorities that were set in the Kirkwood Hospice Strategic Plan ‘Let That Moment Be Now’.

The three priorities we are working towards are as follows:

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

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

C Develop our resources and use them wisely

During the year we have made significant progress towards each of these priorities: A Improving the quality of care delivered and / or the quality of life experienced by service users

With the help of many colleagues and volunteers we successfully introduced a system of regularly surveying the experience of people who use services at the Hospice. Throughout the first year we have collected over 200 surveys of service user experience, which is invaluable data to check how we are doing across a range of aspects of our service and also helps us to identify areas for improvement from the narrative comments.

One of the questions that we survey is how the individual rates the quality of the service provided overall. 94% of our service users rated the service either excellent or outstanding.

At the same time we have implemented a system for collecting data that tells us the different complexity of needs that our patients have when they access our services and how these needs change based on the input we have. This will help us in the future to understand the changing needs of our patients and also to understand how successful we are at meeting their needs. Alongside the information about experience this data will help us to change our services to meet future needs.

Kirkwood has always had an excellent reputation for the quality of care that is delivered; the development of this data will help us to further understand how we are doing and be able to demonstrate the impact we are having on local peoples’ lives to all our stakeholders.

A key outcome for people who use Hospice services is that they are supported to live well until they die, and to be supported sufficiently so that they do not die in Hospital unless this is necessary. Of the population of Kirklees 50% of people that die, die in Hospital. During 2015-16 only 11% of the people that died, that were known to Kirkwood, died in Hospital.

Kirkwood Hospice led a project to implement the Electronic Palliative Care Co-ordination System (EPaCCS) for patients in Kirklees. EPaCCS enables the recording and sharing of people’s care

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94% of service users rated

our care as Outstanding or Excellent in 2015/16

preferences and key details about their care with those delivering their care. The development of this system is key to support co-ordination of care and the delivery of the right care, in the right place, by the right person, at the right time. It is an essential building block for effective care co-ordination in the future.

Another notable achievement in the year was the introduction of the Advance Care Planning (ACP) clinic within the Hospice which has been set up to help individuals with this important process, which helps individuals have a discussion about their future care with their care providers. The ACP process confirms the individual’s concerns and wishes, their important values or personal goals for care, their understanding about their illness and prognosis, their preferences and wishes for types of care or treatment that may be beneficial in the future.

The quality of the care that Kirkwood Hospice provides has been recognised by national and international journals, both in terms of medical research and areas of nursing practice. In particular, this year we have had three articles accepted for publication regarding the assessment and management of pressure ulcers in end-of-life care.


As we described in our strategic plan document, we know that there are people in Kirklees who can benefit from our services who we are not reaching. In 2015-16 we made a good start in


addressing this; Kirkwood Hospice cared for more people in Kirklees than ever before. There were 1,362 individual patients who accessed our services which was 272 more than the previous year.

This was achieved in a combination of ways. We extended our Community Specialist Palliative care service into North Kirklees which resulted in an increase in referrals of 120%. We had 9% more admissions into the In-Patient Unit than the previous year, our Family Care team saw an increase in their clients of 18% and our Support & Therapy service introduced more capacity for patients to Drop-In which saw an increase in this service element too.

We were also successful in increasing the number of people who supported the Hospice, both as donors and volunteers. The continued growth of our campaigns and community fundraising meant that the number of individuals that are donating to the Hospice increased to 18,017 from 14,055, which is an increase of 21.3% while the number of volunteers, who donate their time to the Hospice, has grown to 800 following a determined effort to strengthen the numbers in certain key areas. The Specialist Palliative Care Advice Line continues to develop its impact with existing and new service users. This service is instrumental in helping to support people in their usual place of residence and prevent avoidable admissions to Hospital. The service also helps to facilitate admissions into the In-Patient Unit, seven days a week, further preventing unnecessary admissions into Hospital as access to Hospice admissions

increased. There were 10,469 calls to the Advice Line, which included 724 calls outside office hours. There were a total of 70 admissions that were ‘out of hours’.

A new strategy regarding Hospice enabled Dementia care has been developed. It is expected - following implementation of this strategy - that by 2020 there will be increased uptake of clinical services by people living with dementia and their carers.

A number of education programmes were delivered successfully for other partner organisations; ‘One Chance to Get It Right’ was an education programme that was delivered to 81 colleagues within the Calderdale and Huddersfield NHS Foundation Trust, while the Essential Communications course was delivered once again to 97 colleagues within the Yorkshire Ambulance Service NHS Trust.

The Midnight Memory Walk is the Hospice’s largest fundraising event and registrations in 2015-16 grew 14.4% on the previous year as the event continues to be developed and is growing in popularity, involving more and more of our local community.


It is important that we continue to develop our resources so that we can sustain the quality and quantity of care that we provide in the future. A lot of work has been concluded in strengthening key relationships and partnerships; we have agreed three year grant funding with our Clinical Commissioning Groups and the commitment

to strengthen our partnership through a Joint Commissioning Agreement in the future; we have an agreement in place with Locala Community Partnerships CIC to provide a sustainable programme of Education for Community Nurses and Therapists across Kirklees.

The Kirkwood Hospice Lottery is one of the areas of income that we have been investing in and where we see potential for growth in the future. During 2015-16 registered Lottery players grew from 8,011 to 10,240 on 1 April 2016, which is an increase of 27.8%.

The development of the Hospice retail network continued with a new shop opening in Wyke in November 2015. The implementation of the new shop was a success and involved a number of the wider retail team to make this happen. We took the opportunity to relocate the successful shop in Kirkburton to larger premises, which will help to increase income for the network in the future. In partnership with Healthwatch Kirklees, a piece of research was carried out into the attitudes, perceptions and requirements of black, asian and other minority ethnic communities in Kirklees. The report was published in November 2015 and provides a good platform from which we can work with these communities further in the future.

Following the investment in Management Information in the previous year the Executive Management Team now have sight of key data and information from every aspect of organisational delivery and governance. While there is more work to do, the oversight within the Hospice is more comprehensive and mature as a

17

10,469 calls to the Specialist Palliative Care

Advice Line in 2015/16

result, which allows for better decision making and priority setting.

In October 2015 a celebration evening was held to thank all teams throughout the organisation for their contribution to delivering high quality services. Employees and volunteers were all recognised in their respective teams. The evening was a great success. It was very well attended and the feedback from the night has been very positive in terms of sharing the value that every team brings to the organisation.

The Community Palliative Care Team now have access to fit for purpose mobile technology which allows them access to the full integrated electronic patient record while they are working in the community and in patients’ homes. This development has been achieved in partnership with Locala Community Partnerships CIC so that the costs have been kept to a minimum while our Clinical Nurse Specialists have access to the best technology to support their care.

During the year we have completed a significant project to introduce a HR software system into the organisation. The system (Cascade) will provide for huge efficiencies across the organisation a number of HR / workforce processes will be automated and made easier for all employees. The implementation of the system will also deliver a number of benefits relating to the management of Human Resource; sickness and absence management in particular.

We have embarked an a significant piece of organisational development as we look to strengthen the management capacity within the


Hospice by developing the wider management team of service managers and team leaders. In this first year, a Management Development programme has been successfully delivered and the management culture is beginning to shift as planned. The Kirkwood Management Group now meet regularly to take forward different elements of the overall strategic plan and also to progress organisational wide projects.

Kirkwood Hospice continues to develop its social and environmental impact. This year we have proactively undertaken an energy audit across all aspects of the organisations activities. This is something we will be required to do legally from 2018, but we have decided to take the step proactively in order to identify priority actions in advance of 2018. The recommendations of the audit will be taken forward in the coming year.

We have had another 10 successful placements at the Hospice through the Kirklees Headstart programme. The programme has brought enormous benefits to the Hospice while giving opportunities to local young people. We have also commenced some close working with local schools which has resulted in, among other things, a programme of work experience placements within the Hospice, we are looking to have on placement every month.

Financial review (including reserves policy)

Income generation

Income for the accounting period increased from £5,478,550 for the year to 31 March 2015 to £7,083,361 for the year to 31 March 2016,

and expenditure increased from £5,951,100 to £6,317,918. The surplus for the accounting period before taking into account gains and losses on investments amounted to £765,443 compared to last year’s deficit of £472,550. After taking account of realised gains and losses on investments the surplus is £436,530 compared to last year’s deficit of £193,618.

Total voluntary income has exceeded expectations due to a higher than expected volume of legacy income. Expenditure on staff salaries and fees remained within budgeted limits. The Trustees continue to monitor financial performance against budget as the primary Key Performance Indicator.

Donations and gifts represent a significant proportion of income. 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 £1,785,416.

Resources expended

The cost of the various services is shown in the notes to the Accounts.

The costs of other clinical professionals (e.g. Spiritual Care Co-ordinator, Social Workers, and Therapists) are apportioned between the various departments.

Resources expended in total increased by £366,818. This includes the cost of charitable activities and the cost of providing services, which

increased by £158,299.

Reserves

The reserves increased in value by £436,530 as shown in Note 21 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 12 and 16 months’ expenditure on charitable activities should be the aim. This reserve is to be in addition to any significant planned capital expenditure and designated funds. 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 £950,000 from general reserves to a designated project fund during 2016. The comparative for the year ended 31 March 2015 was 17 months charitable activity and 10 months total expenditure.

Forecasts of income and expenditure are made annually, the aim being to balance expenditure and income. The objective is 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 and 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 Commission. The review is reported to the Hospice Council at its next meeting, and recorded

19

Almost 1,300 walkers took part in the Midnight Memory Walk

in 2015/16

in the minutes.

Future developments and changes

As a provider of specialist palliative and end-of-life care to people in Kirklees, we have developed a specific vision of the future, which has helped us to determine our priorities and goals for the remaining years of our strategy.

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.

The Strategic Plan 2015-2018 details our priorities, and a framework through which we will achieve them (see table on the next page).

We also intend to make use of the Hospice’s 30th Anniversary to reconnect with our local community, raise awareness of what the Hospice is and what it does and also involve our community in developing the Hospice services that will be required to meet significant demands that are in front of us. We will launch a programme of activities, which are hoped will deliver the following outcomes:

• Improved awareness of Kirkwood’s services from patients, relatives, referrers, funders and supporters


• Improved awareness of Kirkwood’s services in under-represented parts of the community of Kirklees

• The development of a new service, possibly with a launch to coincide with the end of the anniversary year

• Fundraising opportunities with bespoke 30th Anniversary events

As a result of the financial achievements in 2015-16 Kirkwood Hospice has reserves that are in excess of the levels identified within our Reserves Policy. The Board of Trustees has consented to the designation of funds that will be used for projects that will further achieve our charitable objectives. In 2016-17 we will go through a process which will identify projects or developments that could be achieved through the allocation of these funds.

In order that we reach more people with specialist palliative care needs, we will continue to make efforts to break down barriers with harder to reach groups in our community. In 2016 we will employ an Admiral Nurse in partnership with Dementia UK and Kirklees Council. This will be an important part of our approach to Hospice enabled Dementia care and we expect this development to have the consequence that more people with dementia will be cared for by Kirkwood Hospice. We will continue to look at how the Support and Therapy Centre is being used to meet the different needs of our community and how we publicise the services we offer to reach out to more people.

Develop organisational capability

1. Workforce and Volunteers2. IT and Communications

3. Partnerships4. Buildings and Equipment

5. Training, Education and Organisational Development

Significant progress has been made already against these goals, particularly in terms of extending the reach of the Hospice to local people that have specialist palliative care needs and also to people in Kirklees that would like to support us.

Much more needs to be done and our plans are ambitious. In 2017 Kirkwood Hospice will celebrate the 30th Anniversary of when services were first provided at the Hospice in 1987. The

30th year will present an opportunity to reflect on all that has been achieved so far, and the many people that have benefitted from the different services that have been developed over all these years.

We plan to use data more and more to understand the needs of the people we care for and to shape service development. We have made a start at systematically collecting Palliative

21

Strategic Priorities Three Year Goal

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

Continually improve what matters to our patients and their carers

Demonstrate the contribution of Hospice Care to our ‘community’

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

Maintain Hospice Ethos


Establish Kirkwood as the co-ordinator of End of Life care in Kirklees

Help meet the growing Palliative Care needs of our community

Provide care to more people across KirkleesReach more of our community – diversify and grow our list of donors


Optimise reserves to ensure sustainability and development

Develop partnerships with statutory commissioners Prioritise and develop new Income Streams

Demonstrate ‘value for money’ and ‘return on investment’

Develop our social value and environmental impact

Outcome scores for our patients. We will use this information to understand the difference we are making to the quality of peoples’ lives but also to understand the changing complexity of the needs we are facing so that we can be flexible to meet these needs. The data we have in our donor database is incredibly valuable to us. We have not made the most of this data in the past. To coincide with the appointment of a new Fundraising Manager, we will embark on a project to better understand this data and to use it to inform our fundraising activities in the future.

We are continuing to look at income generation to ensure we can meet our ambitions to improve quality and reach more people. Critical to this will be the efficiency and productivity of the Kirkwood Hospice retail network. Although the profitability of the network has levelled out over recent years, we know from benchmarking our performance against that of other charity (and Hospice) retail networks, that there are opportunities to improve. In 2016 we will work with all our colleagues within the network to identify the priority areas for development and improvement. We will continue to look for opportunities to expand the retail network, however the priority will be that we optimise the performance of the existing network.

There will be a continued focus on return on investment across all our income lines to make sure that we are achieving as much funds for the services we provide as possible. The management of Hospice events is key; we routinely look at the performance of Hospice events to decide where to place our resources. This focus will continue and in particular we will look at the expenditure


required to run our events to maximise resources.

Work will continue to strengthen our partnerships with local commissioning and provider organisations. The aim will be to clarify roles and responsibilities regarding palliative and end-of-life care. There is a great deal of will in Kirklees to look at improvements and to realise opportunities to provide more care to people at the right time and in the right place. A priority for Kirkwood Hospice is to develop future models of care so that we are able to respond if the conditions are right by developing services to reach more people. We will work with partners to decide on a model of Care Co-ordination for people at the end of their lives to build on the excellent services that are already delivered. We will design a model of Hospice at Home that we would like to deliver in the future. We will also look at additional support that can be provided to people in care homes in Kirklees again to build on the very good examples of care that exist.

Critical to all these plans are the managers and clinical leaders within the organisation. Organisational development will continue so that all colleagues are actively engaged in the delivery of our future priorities. The Kirkwood Management Group will continue to be developed so that we can realise increased capacity to deliver our priorities and gain the involvement of the wider organisation.

Staffing requirements and staff roles and responsibilities are regularly reviewed and revised in light of changing patient needs and organisational developments. In 2016-17 we will continue to look at the needs of future service

developments and develop a strategy to fulfil future workforce requirements.

Trustee succession planning, recruitment, induction programmes and information update sessions will continue. The Board will also place an emphasis on appraisal and development of the Board’s collective skills and performance, particularly in the light of the Francis Report’s comments on Trustee responsibilities, and using principles set down by Hospice UK.

Risk management and financial instruments

The Trustees and Executive Management Team have assessed, and regularly review, the major risks to which Kirkwood Hospice is exposed, in particular those related to the finances and operation and provision of services of the Hospice. The Executive Management Team have 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 key risks for the organisation at present are as follows:

1. The Recruitment & Retention of Trustees

One of the strategic risks for the organisation is that there may be inadequate staffing, skills or behaviour and while this is being managed effectively the greatest concern is over the recruitment and retention of Trustees. A number of new Trustees were appointed during 2015-16. However, the Hospice Board still does not have a vice-chair which is critical for succession

planning when the existing Chair will stand down. A Nominations Committee has been established within new governance arrangements introduced in 2016 and this committee will be responsible for ensuring succession planning and that recruitment drives are targeted to fill known skills gaps.

2. The risk that the management of the Hospice is ineffective

The new leadership team that was established in 2014 has successfully managed the transition from previous arrangements, has refreshed the Hospice strategy and has delivered some significant achievements in its first two years. 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

The risk that income does not cover the cost of providing services remains one of the main organisational risks. The Executive Management Team refresh the long term financial forecast every 12 months to help to predict and manage different future financial scenarios. One of the main risks is the uncertainty of statutory funding, which remains given the financial climate within

23

public services. The Hospice 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. In 2015-16 we have agreed a three year grant agreement with the CCGs which will take us to 2019. In the meantime regular meetings are held with CCG colleagues and we are developing our partnership through a Joint Commissioning Agreement, which should give greater certainty to funding in the future. The development of evidence of impact is critical to this relationship and we have made some good progress in developing our data in the last year, which will help to provide evidence to our partners in future.

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 in the last year and are targeting an increased return on investment from our income generating activities in future.


5. Holding unspent funds at the year-end without explanation

The reputation of the Hospice is critical to successfully continuing to meet the needs of local people and also to continuing to be supported financially. An issue that could affect the reputation of the Hospice is if the Hospice were to hold a substantial amount of funds that are not spent in line with its charitable purpose. While work needs to be done to sustain the financial model of the Hospice in the long term, the Hospice policy is to hold sufficient funds in reserve to cover between 12 and 16 months charitable expenditure. The level of funds is tracked on a monthly basis and action taken should the level of reserves exceed or fall below the stated policy. The Trustees and Executive Management Team actively review any sums in excess of the reserves policy through the Designated Project Fund.

Financial Risk Management

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 operations.

Due to the nature of the financial instruments used by the Hospice, there is no exposure to price risk other that 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, the liquidity risk is managed by maintaining credit balances. The Hospice makes use of money market facilities when funds are available.

Trade debtors are manged 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. Investment Policy

The Trustees are empowered under the Articles of Association to purchase investments in securities and have Charity Commission approval to appoint investment managers and to delegate to them discretionary powers in relation to the management of the Hospice’s investments.

The investment managers aim to achieve a balanced return between income and capital growth accepting a moderate degree of risk as agreed with the Trustees. The Finance and Human Resources Committee meet with the investment managers six-monthly to review the performance of the portfolio and its compliance with the Asset Allocation strategy.

The Hospice does not knowingly invest in manufacturers of tobacco products.

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

- 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

09 September 2016

25

We have audited the financial statements of Kirkwood Hospice for the year ended 31 March 2016 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, 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 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 10, the Trustees (who are also the directors of the charitable company for the purposes of company

Independent Auditor’s Report to the members of Kirkwood HospiceYear Ended 31 March 2016

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 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 group’s 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 presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees’ Annual Report 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 2016, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

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

Opinion on other matter prescribed by the Companies Act 2006

In our opinion 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. Matters on which we are required to report by exception

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 WestgateHuddersfield

HD1 1PA

09 September 2016Helen Solomons (Senior Statutory Auditor)For and on behalf of Wheawill & Sudworth Limited, Statutory Auditor

27

20162015

Unrestricted

fundsD

esignated Fixed A

sset fund

Designated Project fund

Restricted funds

Endowm

ent funds

Totalas restated

Total

££

££

££

£N

ote

Income and endow

ments from

:

Donations and legacies

22,269,816

--

3,130-

2,272,9461,253,443

Charitable activities3

1,278,208-

--

-1,278,208

1,336,359

Other trading activities

43,359,244

--

--

3,359,2442,733,151

Investments

5172,963

--

--

172,963155,597

Total income and endow

ments

7,080,231-

-3,130

7,083,3615,478,550

Expenditure on:

Raising funds6

2,472,123-

--

-2,472,123

2,262,623

Charitable activities6

3,736,37756,312

-22,661

-3,815,350

3,657,051

Other

630,445

--

--

30,44531,426

Total expenditure6,238,945

56,312-

22,6616,317,918

5,951,100

Net (losses) / gains on investm

ents(328,690)

--

-(223)

(328,913)278,932

Net incom

e / (expenditure)512,596

(56,312)-

(19,531)(223)

436,530(193,618)

Transfers between funds

(950,000)2,456

950,000(2,456)

--

-

Net m

ovement in funds

20(437,404)

(53,856)950,000

(21,987)(223)

436,530(193,618)

Reconciliation of funds:

Total funds brought forward

209,500,687

1,616,681-

38,1485,306

11,160,82211,354,440

Total funds carried forward

209,063,283

1,562,825950,000

16,1615,083

11,597,35211,160,822

All income and expenditure derive from

continuing activities.

The notes on pages 34 to 61 form part of these financial statem

ents.

Consolidated Statement

of Financial Activities

Year Ended 31 March 2016

29

Consolidated Summary Income and Expenditure AccountYear Ended 31 March 2016

2016 2015as restated

Note £ £

Income 6,910,398 5,322,953(Losses) / gains on investments (328,913) 278,932

Interest and investment income 5 172,963 155,597

Gross income 6,754,448 5,757,482

Expenditure 6,075,068 5,718,100

Depreciation and impairment charges 242,850 233,000

Total expenditure 6,317,918 5,951,100

Net income / (expenditure) 436,530 (193,618)

The notes on pages 34 to 61 form part of these financial statements.

2016 2015(as restated)

NoteFixed assets 13 4,639,973 4,765,626

Tangible assets 14 5,332,315 5,516,003

Investments9,972,288 10,281,629

Current assetsStocks 15 46,846 45,034

Debtors 16 794,953 640,081

Cash at bank and in hand 1,213,563 646,436

2,055,362 1,331,551

Creditors: amounts falling due within one year 17 (430,298) (452,358)

Net current assets 1,625,064 879,193

Total assets less current liabilities 11,597,352 11,160,822

Charity FundsEndowment funds Permanent endowment 20 5,083 5,306

Restricted funds 20 16,161 38,148

Unrestricted funds 20 11,576,108 11,117,368

Total charity funds 11,597,352 11,160,822

The financial statements were approved and authorised for issue by the Board on XX September 2016.

Signed on behalf of the board of Trustees

J R Spain C J HatfieldChairman Member of Council

Company registration number: 1645888 The notes on pages 34 to 61 form part of these financial statements.

Consolidated Consolidated Balance SheetYear Ended 31 March 2016

31

Charity Balance SheetYear Ended 31 March 2016


NoteFixed assets 13 4,639,973 4,765,626

Tangible assets 14 5,332,415 5,516,103

Investments9,972,388 10,281,729

Current assetsStocks 15 11,469 9,728

Debtors 16 859,011 695,736

Cash at bank and in hand 1,168,945 614,849

2,039,425 1,320,313

Creditors: amounts falling due within one year 17 (414,461) (441,220)

Net current assets 1,624,964 879,093

Total assets less current liabilities 11,597,352 11,160,822

Charity FundsEndowment funds Permanent endowment 20 5,083 5,306

Restricted funds 20 16,161 38,148

Unrestricted funds 20 11,576,108 11,117,368

Total charity funds 11,597,352 11,160,822

The financial statements were approved and authorised for issue by the Board on XX September 2016.

Signed on behalf of the board of Trustees

J R Spain C J HatfieldChairman Member of Council

Company registration number: 1645888 The notes on pages 34 to 61 form part of these financial statements.



Note

Cash flow from operating activities 22 656,586 (183,188) 643,555 (188,131)

Net cash flow from operating activities 656,586 (183,188) 643,555 (188,131)

Cash flow from investing activitiesPayments to acquire tangible fixed assets (117,197) (104,795) (117,197) (104,795)

Payments to acquire investments (1,288,653) (1,047,458) (1,288,653) (1,047,458)

Receipts from sales of investments 1,143,428 1,076,036 1,143,428 1,076,036

Interest received 1,059 1,136 1,059 1,136

Dividends received 171,904 154,461 171,904 154,461

Net cash flow from investing activities (89,459) 79,380 (89,459) 79,380

Net increase / (decrease) in cash and cash equivalents

567,127 (103,808) 554,096 (108,751)

Cash and cash equivalents at 1 April 2015 646,436 750,244 614,849 723,600

Cash and cash equivalents at 31 March 2016 1,213,563 646,436 1,168,945 614,849

Cash and cash equivalents consists of:

Cash at bank and in hand 1,211,939 491,969 1,167,321 460,382

Short term deposits 1,624 154,467 1,624 154,467

Cash and cash equivalents at 31 March 2016 1,213,563 646,436 1,168,945 614,849

The notes on pages 34 to 61 form part of these financial statements.

Consolidated Cash Flow StatementYear Ended 31 March 2016

““I just feel fortunate that I was

able to use the service. I’ve never met so many nice people in such

a short space of time.


1 Summary of significant accounting policies

(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 1 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 UK and Republic of Ireland (FRS 102) issued on 16 July 2014, 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.

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 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.

The charity adopted SORP (FRS 102) in the current year and an explanation of how transition to SORP

Notes to the Consolidated Financial StatementsYear Ended 31 March 2016

(FRS 102) has affected the reported financial position and performance is given in note 27. (b) Funds

Unrestricted 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 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 recognition

All 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 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

35

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 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 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 recognition

All 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:

• 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; and

• Other 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 allocation

Support 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.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of

37

promoting the charitable activities of the charity.

The analysis of these costs is included in note 7. (f) Tangible fixed assets

Tangible 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 land No depreciation provided

Freehold buildings 2% Straight line

Shop fittings The lower of the life of the lease or 5 years

Furniture, furnishings 20% Straight lineand equipment

Computer equipment 33⅓% Straight line

Motor vehicles 20% Straight line

(g) Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are 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) Stocks

Stocks 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 year

Debtors 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) Provisions

Provisions 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 required in settlement and the amount can be reliably estimated.

(k) Leases

Rentals 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 benefits

When 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) Tax

The 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 of a charitable company for UK corporation tax purposes.

39

(n) Going concern

The 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.

2. Income from donations and legacies

Income from donations and legacies was £2,272,946 (2015 - £1,253,443) of which £3,130 (2015 - £41,295) was attributable to restricted and £2,269,816 (2015 - £1,212,148) 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.


2016 2015

£ £

Donations 448,402 734,975

Support groups 39,128 52,554

Legacies 1,785,416 465,914

2,272,946 1,253,443

3 Income from charitable activities

Income from charitable activities was £1,278,208 (2015 - £1,336,359) all of which was attributable to unrestricted funds.

4 Income from other trading activities

Income from other trading activities was £3,359,244 (2015 - £2,733,151) all of which was attributable to unrestricted funds.

41

2016 2015

£ £

Contractual payments 1,245,874 1,268,955

Performance related grants 32,334 67,404

1,278,208 1,336,359

2016 2015

£ £

Fundraising events 768,551 326,878

Lottery 518,167 436,105

Shop income 2,072,526 1,970,168

3,359,244 2,733,151

5 Income from investments

Income from investments was £172,963 (2015 - £155,597) all of which was attributable to unrestricted funds.


2016 2015

£ £

Investment income 171,904 154,461

Interest 1,059 1,136

172,963 155,597

6 Analysis of expenditure

43

Staff Costs Other costs Depreciation Support costs

Total

Raising funds

Merchandising 879,764 529,610 53,867 - 1,463,241

Lottery 65,862 264,611 - - 330,473

Fundraising 320,550 244,635 7,275 80,434 652,894

Investment - 25,515 - - 25,515

1,266,176 1,064,371 61,142 80,434 2,472,123

Charitable activities

In-Patient care 2,118,087 158,723 118,164 370,512 2,765,486

Support & Therapy Centre 341,536 61,467 39,557 71,704 514,264

Community Palliative Care 223,722 20,316 2,037 38,566 284,641

Family Care Team 106,620 19,560 2,037 18,094 146,311

Information and education 57,934 13,966 14,654 18,094 104,648

2,847,899 274,032 176,449 516,970 3,815,350

Support costs

Personnel & volunteers 132,777 55,753 3,495 (192,025) -

Finance & information 195,859 81,887 900 (278,646) -

Administration 89,281 36,588 864 (126,733) -

417,917 174,228 5,259 (597,404) -

Other costs

Governance 18,099 12,346 - - 30,445

Total Resources Expended 4,550,091 1,524,977 242,850 - 6,317,918

Expenditure on raising funds was £2,472,123 (2015 - £2,262,623) all of which was attributable to unrestricted funds, with £2,215 attributable to restricted funds in 2015. Expenditure on charitable activities was £3,815,350 (2015 - £3,657,051) of which £22,661 (2015 - £12,845) was attributable to restricted and £3,792,689 (2015 - £3,644,206) was attributable to unrestricted funds. Expenditure on other costs was £30,445 (2015 - £31,426) all of which was attributable to unrestricted funds

7 Allocation of support costs

8 Investment management costs

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


Personnel & Volunteers

Finance & information

Administration Total

£ £ £ £

Raising funds 33,835 30,587 16,012 80,434

In-Patient care 113,374 177,784 79,354 370,512

Support & Therapy Centre 21,941 34,406 15,357 71,704

Community Palliative Care Team 11,801 18,505 8,260 38,566

Family Care Team 5,537 8,682 3,875 18,094

Information and education 5,537 8,682 3,875 18,094

192,025 278,646 126,733 597,404

2016 2015

£ £

Investment manager fees 25,516 20,047

9 Governance costs

All of the above costs are attributable to unrestricted funds. Included within the audit fee is £1,625 (2015 - £1,520) for the audit of the subsidiary.

10 Net income/(expenditure) for the year

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

11 Trustees’ and key management personnel remuneration and expenses

The Trustees neither received nor waived any remuneration during the year (2015: £Nil).

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2016 2015

£ £

Auditor’s remuneration 12,346 14,326

Staff costs 18,099 17,100

30,445 31,426

2016 2015

£ £

Depreciation of tangible fixed assets 242,850 233,000

Operating lease rentals: Land and buildings 185,668 223,931

Plant and equipment 17,910 23,385

Trustees indemnity insurance 1,152 1,152

Loss / (profit) on fair value movement of investments 328,913 (278,932)

The Trustees did not have any expenses reimbursed during the year (2015 - £Nil).

The total amount of employee benefits received by key management personnel is £353,834 (2015 - £339,628). The Trust considers its key management personnel compromises the Chief Executive Officer, the Director of Finance and Administration, the Director of Clinical Services, the Consultant in Palliative Medicine and the Director of Fundraising & Marketing.

12 Staff costs and employee benefits

The average monthly number of employees for the year was 254, the full time equivalent (FTE) during the year was as follows:

The total staff costs and employee benefits were as follows:


2016 2015

FTE FTE

Nursing & medical 65 57

Education 2 1

Catering & domestic 13 14

Administration 16 14

Fundraising 43 49

139 135

2016 2015

£ £

Wages and salaries 3,852,236 3,543,151

Social security 262,217 243,505

Defined contribution pension costs 263,594 241,280

Consultancy and temporary staff fees 172,044 251,326

4,550,091 4,279,262

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

13 Tangible fixed assets – Group and Charity

47

2016 2015

Number Number

£60,001 - £70,000 2 -

£70,001 - £80,000 1 1

£80,001 - £90,000 - -

3 1

Freehold land and buildings

Furniture, furnishings, vehicles and equipment

Total

£ £ £

CostAt 1 April 2015 as restated 5,412,449 1,630,883 7,043,332Additions - 117,197 117,197

At 31 March 2016 5,412,449 1,748,080 7,160,529

Depreciation:At 1 April 2015 as restated 903,556 1,374,150 2,277,706

Charge for the year 107,970 134,880 242,850

At 31 March 2016 1,011,526 1,509,030 2,520,556

Net book value:

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

At 31 March 2015 4,508,893 256,733 4,765,626

Included within freehold land & buildings is non-depreciable freehold land amounting to £21,000 (2015: £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.

14 Fixed asset investments


Group Listed investments Total

Unrestricted Funds

Endowment Funds

£ £ £

Valuation:

At 1 April 2015 5,510,697 5,306 5,516,003

Additions 1,288,653 - 1,288,653

Disposals (1,099,803) - (1,099,803)

Revaluation (372,315) (223) (372,538)

At 31 March 2016 5,327,232 5,083 5,332,315

Cost:

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

At 31 March 2015 4,266,412 3,219 4,269,631

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Investments at fair value compromise: 2016 2015

£ £

Equities 3,500,234 3,751,830

Securities 1,832,081 1,764,173

5,332,315 5,516,003

Charity Listed investments Equity investment

in subsidiary undertaking

Total

Unrestricted Funds

Endowment Funds

£ £ £ £

Valuation:

At 1 April 2015 5,510,697 5,306 100 5,516,103

Additions 1,288,653 - - 1,288,653

Disposals (1,099,803) - - (1,099,803)

Revaluation (372,315) (223) - (372,538)

At 31 March 2016 5,327,232 5,083 100 5,332,415

Cost:

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

At 31 March 2015 4,266,412 3,219 100 4,269,731

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.

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:


Investments at fair value compromise: 2016 2015

£ £

Equities 3,500,234 3,751,830

Securities 1,832,081 1,764,173

Group undertakings 100 100

5,332,315 5,516,003

The assets and liabilities of the subsidiary were:

51

2016 2015

£ £

Turnover 187,771 169,163

Cost of sales and administration costs (136,979) (124,272)

Net profit 50,792 44,891

Amount gift aided to the charity (50,792) (44,891)

Retained in the subsidiary - -

2016 2015

£ £

Current assets 81,536 67,893

Current liabilities (81,436) (67,793)

Total net assets 100 100

2016 2015

£ £

Aggregate share capital and reserves 100 100

15 Stocks

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

16 Debtors


Group Charity

2016 2015 2016 2015

£ £ £ £

Catering & housekeeping 5,094 3,964 5,094 3,964

Medical supplies 6,375 5,578 6,375 5,578

Shop and fundraising goods 35,377 35,492 - 186

46,846 45,034 11,469 9,728

Group Charity

2016 2015 2016 2015

£ £ £ £

Trade debtors 235,855 150,164 235,855 150,164

Amounts owed by group undertakings - - 65,599 56,655

Other debtors 1,541 1,000 - -

Prepayments and accrued income 275,412 234,708 275,412 234,708

Legacies notified in advance 282,145 254,209 282,145 254,209

794,953 640,081 859,011 695,736

17 Creditors: amounts falling due within one year

18 Leases – Group and Charity

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

53

Group Charity

2016 2015 2016 2015

£ £ £ £

Trade creditors 155,753 179,472 141,530 175,541

Other tax and social security 3,075 72,918 3,075 67,061

Accruals 198,729 134,334 197,115 132,984

Deferred income (note 19) 72,741 65,634 72,741 65,634

430,298 452,358 414,461 441,220

2016 2015

£ £

Not later than one year 219,382 203,578

Later than one and not later than five years 568,882 582,047

Later than five years 256,583 191,083

1,044,847 976,708

19 Deferred income – Group and Charity

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

20 Fund reconciliation

Unrestricted funds


Under 1 Year Over 1 Year Total

£ £ £

At 1 April 2015 65,634 - 65,634

Additions during the year 72,741 - 72,741

Amounts released to income (65,634) - (65,634)

At 31 March 2016 72,741 - 72,741

Balance at 1 April

2015

Income Expenditure Transfers Investment losses

Balance at 31 March

2016

£ £ £ £ £ £

Unrestricted 9,500,687 7,080,231 (6,238,945) (950,000) (328,690) 9,063,283

Designated Fixed Asset fund 1,616,681 - (56,312) 2,456 - 1,562,825

Designated project fund - - - 950,000 - 950,000

11,117,368 7,080,231 (6,295,257) 2,456 (328,690) 11,576,108

Restricted funds

Fund descriptions

a) Unrestricted funds

The 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 funds

Kirkwood 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 2016 confirmed that the general reserve was 19 months of charitable expenditure, which equated to the Hospice holding £950k in excess of their reserves policy. As a result of this position the £950k was transferred into a designated project fund and will be allocated in a way that maximises the benefit towards the Hospice strategic aims and ultimately

55

Balance at 1 April

2015

Income Expenditure Transfers Investment losses

Balance at 31 March

2016

£ £ £ £ £ £

Restricted fixed asset fund 21,455 3,130 (5,968) (2,456) - 16,161

Share and Care fund 16,693 - (16,693) - - -

38,148 3,130 (22,661) (2,456) - 16,161

Endowment 5,306 - - - (223) 5,083

43,454 3,130 (22,661) (2,456) (223) 21,244

facilitates the furtherance of the charities objectives. The fixed asset designated fund compromises assets which were purchased from restricted funds which are not considered to be restricted assets. c) Restricted funds

The 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.

d) Endowment funds

The 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

Total £ £ £ £

Fixed assets 8,404,380 1,562,825 - 5,083 9,972,288

Cash & current investments 247,402 950,000 16,161 - 1,213,563

Other current assets 841,799 - - - 841,799

Current liabilities (430,298) - - - (430,298)

Total 9,063,283 2,512,825 16,161 5,083 11,597,352

General reserves

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

57

2016 2015

£ £

Unrestricted funds 9,063,283 9,500,687

Invested in tangible fixed assets (3,020,836) (3,148,944)

Unrealised (gains) on investments (871,970) (1,244,285)

General reserve 5,170,477 5,107,458

Group Charity

2016 2015 2016 2015

£ £ £ £

Net income / (expenditure) for year 436,530 (193,618) 436,530 (193,618)

Interest receivable (1,059) (1,136) (1,059) (1,136)

Dividends receivable (171,904) (154,461) (171,904) (154,461)

Depreciation of tangible fixed assets 242,850 233,000 242,850 233,000

Losses / (gains) on investments 372,538 (67,280) 372,538 (67,280)

(Profit) on disposal of fixed asset investments (43,625) (211,652) (43,625) (211,652)

(Increase) / decrease in stock (1,812) (3,619) (1,741) 1,812

(Increase) / decrease in debtors (154,872) 318,101 (163,275) 312,200

(Decrease) in creditors (22,060) (102,523) (26,759) (106,996)

Net cash flow from operating activities 656,586 (183,188) 643,555 (188,131)

23 Pensions and other post-retirement benefits

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

NHS Pension Scheme

Eligible 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, based on final salary, 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 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 2016, the charity made contributions to the NHS Pension Scheme totalling £189,390 (2015 -£174,346). Employer contributions were 14.3% and employee contributions were in the range of 5% to 13.5% of pensionable pay.

Other Pension Schemes

Other 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 2016, the charity paid contributions to the schemes totalling £71,096 (2015: £66,934).

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 £2,676, 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.

26 Change in accounting policy

During the year the charity has changed its accounting policy relating to shop fittings from a policy of writing these off in the year in which they occurred to the Statement of Financial Activity as an expense to capitalising shop fittings and writing them off over the shorter of the length of the shop lease or 5 years. The Trustees believe that the updated policy provides a more accurate representation of the benefit received from the cost of shop fittings which spans a number of years rather than writing them off in the year in which the cost was incurred. The financial effect of this is to increase the value of the prior year’s fixed assets by £99,475. The effect on the Statement of Financial Activity has been to increase depreciation by £39,067 and reduce repairs by £39,529 leading to an increase in the brought forward reserves by £462.

27 First-time adoption of SORP (FRS 102)

The charity has adopted the SORP (FRS 102) for the first time in the year ended 31 March 2016.

The effect of transition from SORP (2005) to SORP (FRS 102) is outlined below.

a) Changes in accounting policies

Consequential changes in accounting policies resulting from adoption of SORP (FRS 102) were as follows:

Legacy income continues to be recognised when the charity is entitled to the income. Under SORP 2005 this was the earlier of the charity being notified of an impending distribution and of the legacy

59

being received or if, before receipt, there was sufficient evidence to provide the necessary certainty that the legacy will be received and the value of the incoming resources could be measured with sufficient reliability. 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. Transitional adjustments have therefore been made and these are set out in note 27b).

Income generated from gifts in kind donated for resale under the SORP 2005 were included as income when sold. Under SORP (FRS 102) income is to be recognised at fair value upon receipt of the donated goods where it is practical to do so. Where it is impractical to fair value the items due to the volume of low value items they will continue to be recognised as income when sold. 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. No transitional adjustment is therefore required.

b) Reconciliation of total charity funds

Adjustments to previously reported total charity funds at the date of transition to SORP (FRS 102), including the prior year adjustment set out in note 26 for completeness, although this is not a transitional adjustment, were as follows:


£

Total charity funds at 1 April 2014 under SORP (2005) 11,049,427

Prior Year adjustment (note 26) 99,013

Legacies recognition policy change – transitional adjustment 206,000

Total charity funds at 1 April 2014 under SORP (FRS 102) 11,354,440

Adjustments to previously reported total charity funds at the end of the comparative period were as follows:

c) Reconciliation of comparative period net expenditure

Adjustments to previously reported net expenditure in the comparative period were as follows:

61

£

Total charity funds at 31 March 2015 under SORP (2005) 10,965,214

Prior Year adjustment (note 26) 99,475

Legacies recognition policy change – transitional adjustment 96,133

Total charity funds at 31 March 2015 under SORP (FRS 102) 11,160,822

£

Net expenditure for the period ended 31 March 2015 under SORP (2005) (84,213)

Prior year adjustment – reduction in repairs (note 26) 39,529

Prior year adjustment – increase in depreciation (note 26) (39,067)

Legacies previously recognised in 2015 transferred to 2014 – transitional adjustment (206,000)

Legacies not previously recognised in 2015 – transitional adjustment 96,133

Net expenditure for the period ended 31 March 2015 under SORP (FRS 102) (193,618)

Kirkwood Hospice is an independent hospice and a Registered Charity (Number 512987).Company Limited by Guarantee in England No. 1645888

01484 557900

facebook.com/kirkwoodhosp

@KirkwoodHospice

www.kirkwoodhospice.co.uk

Documents

Annual Report 2015/16 - Kirkwood Hospice › uploads › files › Kirkwood_Hospi… · This document, setting out the Annual Report and Accounts, provides information on a year of