Company Registration No. 02280991 (England and Wales)
Charity Registration No.700993
PENDLESIDE HOSPICE
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
31 March 2024
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
PENDLESIDE HOSPICE
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
David Brown
David Walker
Giles Williams
Angela Brown
Jaydee Davis
Gillian Oakley
Mike Steel
Helen Binns
Mark Irlam
Amir Saeed
Appointed 20/11/2023
Elinor Green
Appointed 20/11/2023
Martin Schofield
Appointed 20/11/2023
Roger Cornes
Resigned 21/11/2023
Francesca Chapman
Resigned 03/04/2023
Margaret Hynes
Resigned 09/10/2023
Chief executive officer
Helen McVey
Secretary
Helen Binns
Charity number
700993
Company number
02280991
Registered office
Pendleside Hospice
Colne Road
Reedley
Burnley
Lancashire
BB10 2LW
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
Investment advisors
James Brearley & Sons
7 South Preston Office Village
Cuerden Way
Bamber Bridge
Preston
PR5 6BL
Close Brothers Asset Management
7th Floor
80 Mosley Street
St Peter's Square
Manchester
M2 3FX
PENDLESIDE HOSPICE
CONTENTS
Page
Trustees' report
1 - 14
Independent auditor's report
15 - 18
Group Statement of financial activities
19
Group balance sheet
17
Charity balance sheet
18
Group Statement of cash flows
22
Notes to the financial statements
23 - 38
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT)
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The trustees present their annual report and financial statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 and "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)" (effective 1 January 2019).

During the financial year, Pendleside was delighted to celebrate its 35th anniversary of providing care to people in Burnley and Pendle, a great achievement and something that everybody at the Hospice is very proud of. At the same time in February 2024 the Hospice was awarded Outstanding by the Care Quality Commission, again another proud achievement.
Nevertheless, following on from the last few challenging years, the twelve month period ending 31st March 2024 continued in the same vein as we continued to experience the impact of the cost of living crisis, including the significant rise in inflation resulting in increases to our general running costs and the impact of the national living wage increase, significant increases in public and private sector pay resulting in an increase in our salary budget to stay legal and competitive in the job market. All of this, whilst at the same time receiving a freeze in our NHS grant funding meaning that we had to rely more than ever on our charitable income to fund patient care.
The introduction and embedding of new initiatives, such as the ongoing development of our hospice at home and health and wellbeing services and the development of services for people with dementia, including an Admiral Nursing service  have all proven to be very successful with people receiving services continuing to provide excellent feedback.
This has all been made possible, and further enhanced, through the dedicated care and support provided by our clinical, ancillary, administrative, fundraising and retail employees and volunteers. The team continuing to work proactively and innovatively in order to face the challenges being experienced. We simply could not have achieved this have without the teams from across the Hospice pulling together as one with positivity and determination to meet the needs of the people in our local community who need our support.
Chairman's Report
We are continuing to see a period of uncertainty and ever changing times, with the future remaining unclear and proving extremely difficult to plan for. Despite this, Pendleside Hospice continues to step up to support our local community by adapting and increasing the support it provides to local people. In a positive way, we have been able to support some of the most vulnerable people in our community whilst, at the same time, maintaining existing service provision and introducing new and innovative ways of delivering our care.
In maintaining and developing our services, we have continued to work more collaboratively with other Hospices in Lancashire, the NHS, other charities, as well as social and domiciliary care providers. These enhanced ways of working enable the sharing of our knowledge and experience of palliative and end of life care, whilst also ensuring a responsive, cohesive service for patients living with advancing, long term and life limiting illnesses, their families and carers.
Particularly, we have been able to provide more support to people living with dementia. This has been recognised as extremely important for the future, with dementia now being one of the leading causes of death in the UK.
We have also supported people who we have identified as being less likely to access Hospice services, including those with frailty, the homeless, those who are socially vulnerable and in minority ethnic groups. Besides focusing on the maintenance and development of our clinical services, we have, at the same time, continued to focus on income generation and fundraising in order to ensure long term sustainability of the funding for our services.
Our retail operation continues to grow and improve, and our “Rewear Revolution” campaign encourages people to both donate and shop in our retail outlets.
Fundraising was also very successful with annual events such as Pendle Pub Walk proving as popular as ever. Overall, the level of supporter donations has been very positive.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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Our ‘meals on wheels' service, which started in late 2020, has also seen good growth. Besides serving people who are isolated and vulnerable in the community, it also generated a surplus, which has helped in funding patient care services.
2023/24 took us a year closer to the endpoint for implementation of our current organisational strategy. This set out our priorities for the future and we are pleased to report that we have continued to make some excellent progress with the strategy, continuing with the single point of access for fast track night sits and further development of our hospice at home night sitting service.
We have met all our regulatory requirements, and were delighted to be awarded “Outstanding”, following our Care Quality Commission inspection in October 2023.  This is an endorsement of the hard work and dedication of the whole of Team Pendleside and we are rightly proud of this achievement.
Looking forward, we plan to review our strategy over the forthcoming year to ensure that it remains relevant. We will also look to expand on the achievements of the last twelve months in order to ensure that we continually meet all the objectives we have set ourselves.
All of the above just goes to emphasise how important the support that the Charity receives from our local community is and how we would not be able to continue to operate, as we do, without this support. We have been more fortunate than ever to have this community backing with the cost of living crisis impacting our supporters as much as it has on the Hospice. We very much value the ongoing contribution that our local community makes towards the present and the future of Pendleside Hospice.
Objectives and activities
The objectives of the charity are to promote the relief of sickness by providing or aiding in the provision of medical, social and spiritual treatment and attention for persons who are suffering from any chronic or terminal illness.
Activities
The main activities undertaken are:
-Inpatients
-Outpatients
-Health Wellbeing and Rehabilitation Services (formerly Day Services)
-Hospice at Home and community services
-Family Support Service (including pre and post bereavement support and spiritual care)
Pendleside continues to work towards its current four year strategy which sets out the vision, mission, values and aims for the next four years: -
Mission:
Pendleside exists to enhance the quality of life for people living in our community with advancing long term and life limiting illnesses, through to end of life and in bereavement.
Vision:
Every adult with advancing long term and life limiting illnesses and those most important to them within our community will receive timely and equitable access to high quality services, delivered by appropriately trained staff and volunteers.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Our values underpin everything that we do:
1
Care:
We ensure a professional standard of high quality care provision delivered with kindness, dignity andrespect.
2
Compassion:
We ensure that a compassionate and a non-judgemental approach remains central to the delivery of our services.
3
Support:
We ensure that people are listened to, their contribution valued and that necessary support is provided according to each individual need.
Our overall aims:
Proud to Be Pendleside
Our people identify Pendleside as a good place to work/volunteer and we are the health care organisation of choice to work/volunteer for.
Community collaboration
To build a compassionate community involving, influencing and working in partnership with all stakeholders to enhance palliative and end of life care.
Care delivery
To reach out to as many people as possible who need our care.
Governance
The Hospice meets its regulatory requirements and manages risk effectively.
Sustainablity
Services are sustainable in the changing external environment.
Our care is free of charge to those we serve.
The policy of the Trustees is to generate sufficient Incoming Resources as to (a) provide adequate income to cover the anticipated increase in operating costs of the charity and (b) build sufficient reserves as to cover future growth and capital investment. In addition, the Trustees need to be very aware of and allow for possible variations in funding streams from major donors such as the NHS.
The grant income previously received from the NHS continued to be an important source of income in maintaining our services, funding however decreasing to approximately 22% of the Hospice operating costs due to a freeze in our NHS grant. The contribution significantly lower than the, than the 30% average contribution, provided nationally to Hospices across the UK.
It was disappointing to receive no increase in our NHS grant funding despite the significant increase in inflationary costs experienced in both our general running costs and wage costs as a result of the impact of high inflation both nationally and globally and the living wage increase and increases in public and private sector pay, for Pendleside to stay legal and competitive in the job market locally; whilst at the same time the demand on our services continuing to grow and the Hospice  continuing to provide significant support to the health and social care system locally.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Income from Pendleside's hard working supporters, remained excellent and grew in comparison to the previous year. This was, in large, due to the reinstatement of community fundraising initiatives following the removal of Covid restrictions, which allowed supporters to, once again, organise their own events, and for Pendleside's own major events' program to be fully reinstated, alongside other new events, which were introduced during the year.
Our traditional events, which includes the Pendle Pub Walk and Light up a Life celebrations, did particularly well, with great support whilst, at the same time, raising a substantial amount of funding.
We also successfully held several new Fundraising events in celebration of our 35th  anniversary including Memories on the Lake, which replaced our previous Sunflower event, Pendleside Does Strictly, The Great Pendleside Trek and Pumpkin Trail all of which were very well received and supported by our community and raised significant funds to support the work of the Hospice.
It was also very positive to work, once again, with local businesses in the local area, and to bring back our Corporate Challenge event, which had to be put on hold due to the Covid pandemic. Businesses in the Burnley and Pendle areas together raised over £167,926.74 to support the work of the Hospice.
Our retail operation was this year moved into our new trading account as part of our risk strategy.
Following a challenging few years for our retail operation, a positive action plan and a new campaign for our 35th anniversary “Rewear Revolution” (the campaign aiming to raise awareness of the benefits of shopping for preloved items and, in doing so, raising vital funds for patient care at Pendleside
), it was encouraging to see the shops doing well and once again raising the highest level of retail income in the history of the Hospice.
We continued to build on links with other local retailers, who continued to donate new goods for selling in our shops.
In addition, the Hospice eBay shop once again did well raising £77,400 with plans to grow this income further over the forthcoming year.
Our meals on wheels service set up in Covid, as a pilot, to support people who are frail and housebound whether or not they are known to the Hospice, has now been fully embedded in our service provision and continues to grow.  This is the only service charged for by Pendleside and consequently as well as delivering a service to local people it makes a small contribution to funding patient care.
Lottery income was reduced for the third year running, down significantly by 6%, however with expenditure less than in previous years overall the surplus was down by only 5%. This is thought to be due to the increase in competition with other Charity lotteries operating in the area but also the impact of the cost of living crisis.
With lottery income being an important income stream as it provides regular income to the Hospice, plans are in place for the forthcoming year to revitalise the lottery with a new campaign and to commence lottery canvassing again.
Along with all of the above, and more crucially than ever as the Hospice sees its NHS funding remaining static, our community support remains excellent with many individuals, groups and businesses across Burnley and Pendle undertaking their own fundraising initiatives to raise money. The importance of this area of income for the Hospice cannot be understated nor undervalued.
As always, the Board wishes to express its full appreciation for this outstanding level of public support, without which the Charity would not be able to continue its operations.
The objectives for 2024/25 are to continue to maintain all existing Hospice services, whilst developing and enhancing them, wherever possible, within financial and other resource constraints.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
All service developments and enhancements during the year were driven by the Charity's understanding of its community and service users' needs, along with national and local guidance and, where appropriate, these were implemented in partnership with the statutory services and other independent organisations.
Our “Pendleside Together” group of service users, patients and stakeholders continues to be hugely influential in analysing service effectiveness, recognising and helping to deliver service improvements and assisting in the overall development of services.
Volunteers
The Trustees recognise the huge amount of work put in by the Hospice's volunteers, which support and complement the work of the Charity's employees.  Pendleside Hospice simply could not function without its volunteers, and there are, currently, over 400 volunteers working across all Hospice services, including the clinical services, Charity shops, reception, administration, fundraising, gardening counselling, driving, gardening and our Friends of Pendleside (who support the Hospice with ad hoc events throughout the year). This is slightly less than last year as we struggle to recruit new volunteers into roles that become vacant, particularly within our retail operation. Nevertheless our Hospice retail operation has nearly 200 volunteers working across all our shops.
As well as all this, we cannot forget to mention the high level of commitment from our trustee team who contribute to the overall running of the Hospice.
Our ‘volunteer representative group' set up last year, continues to grow and embed with representative from all departments across the Hospice, ensuring that all our volunteers feel able to influence the role of volunteering across all areas of the Hospice.
It is important to mention that the financial statements exclude the value of voluntary help, as this is extremely difficult to quantify.
Public Benefit Statement
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when setting the Charity's aims and objectives and in planning future activities and setting policy for the year.
The Charity's prime objectives continue to be the promotion and provision of specialist palliative and end of life care, of the highest quality, for the people of Burnley and Pendle with advancing, long term and life limiting illnesses and to do so in partnership with statutory services and other independent organisations.  Its aim is to promote the quality of life for each individual accessing its services as well as that of their families, friends and carers.  This care is provided free of charge to all people of seventeen years and over. Inpatient care is also provided for patients from the Rossendale area.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Achievements and performance
Summary of main achievements
As already detailed, in 2023/24, our main achievements have been the continuation and maintenance of our existing service provision whilst continuing to develop and enhance our services and respond to the needs of people living with advancing, long term and life limiting illnesses in our community, including those affected by the aftermath of the pandemic and cost of living crisis. In particular, responding to the needs of patients with either a cancer or non-cancer diagnosis and those with multiple comorbidities, along with their families and carers. This has meant responding to people with more complex needs and ensuring that we provide responsive, safe and effective care.
Whilst there were many achievements throughout the year, a particular success was overall across the organisation receiving an outstanding rating from the Care Quality Commission.
In addition there are have been several achievements within each of our clinical services, including: -
Inpatients introducing an electronic prescribing system which supports the safe prescribing, administration, ordering and monitoring of medicines.
The continued development of the hospice at home night sitting service and single point of access for fast track care
The continued development of services for people with dementia, including appointing a specialist Admiral Nurse, funded by the Hospice working in collaboration with the charity, Dementia UK.
Developing services for people underrepresented in our community using a compassionate community approach. Including: -
Continuation of work with a homeless Charity to support socially vulnerable or homeless people who had palliative and end of life care needs
Promotion of services to people from minority ethnic groups, ensuring that the services we provide are fit for purpose
Promotion of services to people with frailty, again ensuring that the services we provide meet the needs who are frail and approaching the end of their life.
The above work meaning that we are now caring for some of the most vulnerable people living within our local community, their families and carers.
Our Health, Wellbeing and Rehabilitation service (formerly known as Day Services), continuing to grow from strength to strength, by caring for more patients than the previous year, increasing its support to carers through introduction of various carers groups and the development peer support groups for people who don't necessarily need the support of the Hospice but benefit from meeting people in a similar situation as themselves, facilitated by the Hospice.
Feedback from service users during the year was overwhelmingly positive, with all who responded to our service user survey stating they would recommend Pendleside services to others in similar circumstances
Likewise, our staff survey was also very positive. Of those who responded:-
98% stated they enjoy the work they do
97% felt they could make a difference
97% believed in the aims of the Charity
96% are proud to work for Pendleside
We were also delighted to be awarded two national awards from Hospice UK conference, for Team of the Year and Inclusivity Champion as well as being shortlisted in the prestigious Lancashire Red Rose Business Awards in the employer of the year and the health and wellbeing categories.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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Overall 2286 (1,744 the previous year) service user's accessed services and had a contact, either by telephone, face to face appointment or were an inpatient. The number reported appear significantly higher than the previous year and whilst we recognise that we have increased the care provided we have also upgraded how we capture information. The breakdown of this us as follows:-
1,472 (1,079 previous year) patients
689 (589 previous year) family members/carers pre and post bereavement
125 (76 previous year) children received bereavement support
This was a similar number to the previous year but, as mentioned earlier, the number of contacts per service user increased significantly.
The breakdown of service delivery is detailed below:
Inpatient services cared for 149 patients, slightly less than the previous year. This appears to be due to the average length of stay for patients being higher than average and also due to changes in medical provision, two of our long term doctors retiring and their being a period where new doctors were recruited and inducted, meaning that we did not have the medical capability we had the previous year whilst we went through this process. Bed occupancy was 86% the same as last year. Similarly 73% of patients received end of life care and 27% were discharged home or to a care home.
444 service users attended the Health Wellbeing and Rehabilitation Service, with a total of 7,000 face to face contacts, compared to 6,363 contacts the previous year.
The number of patients on the outpatient caseload increased to 742 patients. A total of 1,245 contacts were made similar to the previous year.
714 patients accessed community services, slightly higher than the previous year, with a total of 9,356 contacts a significant increase o814n the 7,824 the previous year.
814 carers, 689 adult carers and 125 children, accessed pre and post bereavement services.
All the above achievements highlight the Hospice's ongoing effectiveness in helping to supporting people living in the local area with advancing long term and life limiting illness, their families and carers.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Financial review
In the financial year ended 31st March 2024, the Charity generated a surplus of £450,888, which was a marginal improvement on the surplus of £445,061 during 2022/23. Total funds at the year-end came to £13,693,030. More detailed on the income, expenditure and the financial position is shown, on pages 16 to 18 of the financial statements.
With Covid no longer a serious threat or hindrance, we were able to run, for a second consecutive year, with a full program of fundraising activities. However, there were many challenges still to overcome, as the effects of the ‘cost of living crisis' and high levels of inflation continued to have an effect on both income levels and operational expenditure. In 2022/23, the Hospice received a record level of bequests made in supporters' wills, which made a huge difference to the financial outcome for the year. In the year ended 31st March 2024 this was not repeated being around 60% down on the previous year. The turnaround for the year came in the enhanced values of the Charity's listed investments.
Our trading subsidiary company, Pendleside Trading Ltd, which commenced operating in April 2021, now reports on our community Meals on Wheels service and the charity retail side of our operations.
Income from general fundraising – supporter donations and activities plus various events – achieved record levels of approximately £1.165m.
Similarly, our Charity retail operations hit a new record of over £897,000. This is a very encouraging performance and suggests that further investment in retail activities should be a focus for Pendleside.
Whilst ‘gifts in wills' income was at just over £1.5m in 2022/23, the latest year was just short of £640,000. This further highlights the unpredictability of this form of income and, whilst strategies are in formation to grow this in the future, the timing of incoming funds from this source will always be out of our control.
The NHS continues to provide support to the Hospice through an annual grant. However, there have been no increases of any substance to the sum received meaning that inflation has further eroded its effect on the Charity's annual expenditure. A service level agreement, for a ‘fast track' night sit service, has lifted our NHS-based income but this comes with a large level of cost meaning that there are no surplus funds generated for this area of activity.
With interest rates remaining, relatively high during 2023/24, we have been able to generate acceptable levels of return from our cash reserves due to the availability of deposit terms around the 5% mark. Whilst dividends from our listed investment portfolios remain very modest the recovery of global markets led to the total valuations of the two managed funds held by Pendleside to appreciate by around £815,000, prior to management fees, during the financial year.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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In terms of expenditure, staff pay, food costs and utilities were substantially up on previous years. The increase on our total expenditure from 2022/23 to 2023/24 was just over 13%. With staff cost making up the majority of our operational costs, the need to maintain competitive pay rates adds a significant sum to each year's running costs.
With regard to the new financial year that commenced on 1st April 2024, an increase of 0.6% in our annual NHS grant offers little to help the Hospice with the significant cost increases it faces or has already started to incur. A pay award to staff, effective from April, more than wiped out the whole annual increase (below £6,000) on the NHS grant and the annual budget for 2024/25 has projected an operational deficit of approximately £700,000. This includes very challenging income targets that means the generosity and support of our community will be crucial to even meeting this target. Without any substantial and unexpected income streams, which, in reality, are only likely to come from legacies left to the Charity, it would seem very unlikely that we can avoid our first significant annual deficit. Fortunately, fiscal prudency means that the reserves of the Hospice will be available to use against this short-term deficit.
The Pendleside management team and all our staff continually strive to control as much as we possibly can in relation to our outgoing expenditure However, some overheads are unavoidable and cannot be influenced or reduced by the Hospice. The cost of utilities (electricity, gas and water) are often decided on by national and global factors, as are insurance premiums. External subscriptions and statutory fees are, largely, uncontrollable. The pressures exerted by the job markets all impact on the costs involved in employing the numbers of staff we need to employ to provide our services. National NHS staff pay agreements will always make it a challenge to be competitive in recruiting and retaining staff, as will increases to the National Living Wage rate. As costs increase, our efforts to generate the income needed to maintain a status quo outcome at the end of each year need to be greater and more innovative.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Investment Policy
The Charity may undertake any investment that the Board of Trustees see fit. This is given in our ‘Memorandum and Articles of Association', and is constantly reviewed. It is considered that the most appropriate policy for investing the majority of its funds is a varied portfolio of stocks, shares, unit trusts and deposit accounts. The Charity has also invested in additional property during the year. In the autumn of 2023, we secured new shop premises, which included first floor offices. This means that the charity now owns two shops, four flats, one house and the office space. Rental income is received from these properties and one more house, left to the Hospice in a legacy, has, since the turn of the financial year, been added to the asset register with a view to obtaining rental income and asset appreciation.
The Finance and Resources subgroup look at our investments each month and consider that the ongoing utilisation of third party investment managers, to provide balanced portfolios that aim to produce quarterly income as well as capital growth are wholly appropriate for the Charity. The managers of these funds have delegated responsibility to manage them with an expectation to maximise returns.
These investments are all quoted on the stock exchange and are subject to fluctuations in the markets. The intention is that their designed and composition will enable growth over a longer term. Hence, it is crucial that their performance is judged over a number of years rather than just one single period.
Global financial and geopolitical influences do cause significant fluctuations in investment valuations and we must be wary of events such as energy crises, conflicts (e.g. Ukraine and Gaza) and threats of US-led economic recessions having detrimental impacts on the values of our investments. We aim to ensure that the risk profile adopted with our investments is appropriate and responsible, at all times.
Principal Funding Sources
There have been no changes to our primary funding sources. These remain as supporter donations and fundraising activities, by individuals, groups and organisations, plus legacy bequests, Charity retail income, fundraising events and activities, a prize lottery scheme, Meals on Wheels service and investment income. Alongside this is the annual NHS support grant and other contracted services. The total of our Incoming Resources for the year amounted to £5,102,380.
Reserves Policy
A ‘Summary of Funds' is shown in Note 26 to the accounts.
As at 31st March 2024, our total reserves amounted to £13,805,773 of which £112,743 was held in restricted funds.
Our accumulated reserves enable the Charity to plan for the medium term future with a significant level of confidence and security. The Board of Trustees constantly look to ensure that the reserves held are invested in a prudent and wise manner. The intention is to make sure the Hospice is capable of providing its community with the best possible services. It is recognised that maintaining our vigilance and efforts to financially sustain and, where possible, grow our income is crucial to the future. It is our mission to expand and sustain existing services whilst looking to provide new ones that would benefit those in need of them within the Burnley and Pendle boroughs.
Our reserves policy is to remain unchanged. As previously, general funds are to be maintained at a level that will enable the Charity to continue the provision of its services during a period of unexpected difficulty. This could be, for example, a significant downturn in our overall income levels. The 2023/24 annual accounts show a surplus of £450,888, which is after taking into account investment gains of around £815,000, excluding management fees. The previous year had a surplus of £445,061 but with significant reductions in the values of our investments (over £579,000). It was only a record level of legacy income, at £1,511,272, that prevented the Hospice from recording a deficit for the year. Rising costs, particularly with staff salaries, increased in order to ensure effective recruitment and retention of staff, alongside the unpredictability of several income streams, have resulted in a budgeted deficit for the financial year 2024/25.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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Within our total reserves figure, as at 31st March 2024, is a designated fund amount of £7,748,912. This is includes £2,748,912 for the book value of our fixed assets. Once again, the Trustees have considered the level of general funds at the end of the financial year and, with a view to supporting some of the priorities of the Charity, the Board has agreed an increase to the designation of these funds. This aligns our priorities with the overarching organisational strategy and with the Hospice's future development of its services.
It was in 2018 that the Trustees made the decision to designate the sum of £2million of its reserves towards service lines, staff training and staff development, as well as the potential development of the former Reedley Hall site, which is adjacent to the current Hospice buildings. Consideration of the challenges arising in the management of budget deficits, alongside expected increases in the demand for our services, and having to review how we respond to the complex needs of people needing access to the Hospice's services contributed to this decision previously. However, with significant increases in inflation, since this was agreed, plus an ageing building and exploratory works to upgrade the existing building and develop the Reedley Hall site, it was identified that the amount designated was insufficient to meet what it was intended for. With work undertaken to consider the requirement to upgrade and refurbish the Hospice building over forthcoming years alongside the development of the Reedley Hall site and a significant increase in salaries since 20218, in order to stay competitive in the job market, it was agreed to designate a further £3million of reserves to support this.
As we started the new financial year, in April 2024, after accounting for these restricted and designated funds, the Charity now has the sum of £5,359,021 in our general ‘unrestricted' funds. Financial forecasting leads the Trustees to consider that the magnitude of these funds, after increasing the amount held in designated funds, remains wholly justified and it is felt that the sum will be sufficient to provide the Hospice with financial sustainability of the Hospice for several years, even given a run of substantial operational annual deficits. The last few years have shown that there is much future uncertainty. The Board feels reassured that the financial projections made show that our reserves are sufficient to maintain our current level of services, in the medium term. They offer peace of mind to both the Board of Trustees, the Senior Management Team and the entire workforce of Pendleside Hospice.
Structure, governance and management
The Charity is governed by a Board of Trustees, which takes overall responsibility for all element of its work. They continue to delegate the day to day management of the Hospice and its various activities to a Senior Management team that includes the Chief Executive, Clinical Services Manager, Finance and Business Manager and Head of Income Generation. A Medical Director has been appointed and is due to join the team in the autumn of 2024.
The Charity is constituted as a company limited by guarantee (No 02280991) and its Articles of Association provide that one third of Directors shall retire at each Annual General Meeting. The Company is registered as a charity (No. 700993) with the Charity Commission and the majority of its staff operate from its own purpose built buildings, known as Pendleside Hospice based at Colne Road, Reedley in Burnley. The Executive Committee appoints the Chairperson, from time to time.
New Trustees are sought from time to time, usually to fill a perceived gap in the skill mix of the current Board. This is done by advertising a vacancy on the Hospice website, via social media or in the local press or by a direct approach to people who may have the right skills to fulfil the role of Trustees. All potential Trustees, on application, then receive a rigorous recruitment process and six month probationary period, prior to their appointment being confirmed. One Trustee stepped down from their role of Trustee and the Similarly, new Trustees are sought from time to time, usually to fill an identified gap in the skill mix of the current Board. This recruitment is carried out by advertising vacancies on the Hospice's website, via social media or in the local press. In addition, a direct approach can be made to people who are deemed to have the right skills to fulfil the role of Trustees. On application, all potential Trustees receive a rigorous recruitment process as well as a six month probationary period, prior to their appointment being confirmed. Plans to recruit into vacant roles exist and are being implemented.Treasurer, Roger Cornes, stepped down from his role as treasurer with the intention to retire fully from the role as Trustee at the next Annual General Meeting. Helen Binns, already an existing Trustee, took over the role of Treasurer. Plans were made to recruit into vacant roles, which have been carried forward to the following year.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
The Board of Trustee look to meet every quarter and have delegated authority to four specific subcommittees. These are clinical governance, finance and resources, income generation and people (i.e. employees and volunteers). These management subgroups all have formal terms of reference, and meet regularly. They report to the Board at the quarterly executive meeting. Every Trustee takes an active role, alongside the relevant senior and relevant operational managers, in, at least, one of these subcommittees.
After their appointment, any new Trustees are required to undergo full training on their legal obligations under Charity and Company law, as well as the content of our Memorandum and Articles of Association. In addition, they are initiated on the committee and decision-making processes, our strategic business plan and the recent financial performance of the Charity. They will meet all key managers and employees, plus service users and other Trustees. Finally, new and existing Trustees are encouraged to attend appropriate training events and relevant external meetings, especially where they are considered useful to the facilitation of the undertaking of their role within Pendleside.
The Charity had an average of 150 employees working across the organisation during 2023/24. These employees equate to 113 whole time equivalent (WTE) employees. In addition to this, we have three staff work under a practising privileges agreement and the Hospice maintains a bank of health care professionals and support staff.
A Remuneration Committee, which consists of nominated Trustees and the Senior Management Team, meets annually to determine the pay and remuneration of all staff. This Committee takes into account the current and expected rates of inflation plus general salary levels, public and private sector pay scales, the National Living Wage rate, as well as information from other Hospices and similar organisation when setting levels of remuneration.
The Board of Trustees are collectively responsible for the wellbeing of the Charity within a framework of prudent and effective controls, which enable risk to be assessed and managed. The Board must also ensure that the aims and objectives of the Charity are maintained and the Trustees are required to understand the obligations Pendleside Hospice has to all its stakeholders, as well as the local community and the statutory services that help to finance its operations.
The Trustees continue to assess and log clinical and business risks and implement systems to mitigate them. Any identified risks are mitigated by the implementation of procedures for the authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charitable organisation. These procedures are periodically reviewed to ensure that they still meet the needs of the Charity. The Trustees have delegated responsibility for the management and implementation of such procedures to the operational management of the Charity, including a duty to identify and evaluate risks and report failings and any corrective action arising.
Risks are reviewed in a number of different ways.  All aspects of the Charity's service provision are governed by policies and procedures that are required to comply with the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014, under the regulation and inspection of the Care Quality Commission. All of these are reviewed internally, at least every three years, though some are annually or even more often, if there are changes to legislation or best practice guidance. Action is identified to correct or improve practice, thereby mitigating any identified risk, as appropriate, under the direction of the Charity's Quality Assurance Group. Other risk items may be identified for corrective action at the time of a regulatory inspection.
Of continuing importance is managing the risk caused by of ongoing, though, in recent months, slightly relieved, cost of living pressures, particularly in relation to expenditure and remuneration. Staff costs have continued to substantially increase in the last two years and the remuneration committee continue to take a balanced view of staff pay and staff recruitment/retention in order to respond appropriately to these pressures. We continue to be careful in purchasing support services, utility supplies, and other areas of expenditure with a view to mitigating these as much as possible.
The Hospice maintains and regularly reviews a dedicated policy for the “Reporting and Management of Adverse Events” including serious incidents. All such incidents, both clinical and non-clinical, are recorded and reported to an appropriate subcommittee of Trustees, as well as to senior and operational managers. A summary report of all adverse incidents is made to the Board every quarter. The operational management of the Charity is responsible for identifying and implementing corrective action arising from adverse incidents as appropriate.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
The Charity is proactive in assessing specific risks under the terms of its risk management policy and procedure.  Many of these relate to general health and safety and the safety of our service users but others are of a specifically financial nature for which the Trustees commission the services of external auditors. Examples include the audit of the Charity's internal financial controls, payroll processing and lottery administration.
The Hospice is registered with the Fundraising Regulator and an objective of the Charity is to comply with the voluntary regulation scheme and the Code of Fundraising Practice. Compliance is monitored by the Income Generation Subcommittee and action is agreed, identified and monitored to maintain and improve fundraising standards; this includes ensuring practices protect people and others from unreasonable intrusion on a person's privacy and unreasonably persistent approaches or undue pressure to give in the course of fundraising for the Hospice.
No complaints were received regarding fundraising practice in the twelve-month reporting period.
The liability of each member by way of their guarantee to the Company is to contribute a sum not exceeding one pound to the assets of the Company if so required on the winding up of the Company.
Funds held as custodian trustee
There are no funds held as custodian.
PENDLESIDE HOSPICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Statement of trustees' responsibilities

The trustees, who are also the directors of Pendleside Hospice for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

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;

 

- 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; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity 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 Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that PM+M Solutions for Business LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report, including the strategic report, was approved by the Board of Trustees.

David Brown
Helen Binns
Trustee
Trustee
Dated: 31 October 2024
Dated:31 October 2024
PENDLESIDE HOSPICE
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PENDLESIDE HOSPICE
- 15 -

Opinion

We have audited the financial statements of Pendleside Hospice (the ‘Charity’) for the year ended 31 March 2023 which comprise the Consolidated statement of financial activities, the Consolidated and Charity balance sheets, the Consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable group's affairs as at 31 March 2024 and of its 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and

-

the strategic report and the directors' report included within the trustees' report have been prepared in accordance with applicable legal requirements.

PENDLESIDE HOSPICE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENDLESIDE HOSPICE
- 16 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the trustees' report.

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

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the 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.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

PENDLESIDE HOSPICE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENDLESIDE HOSPICE
- 17 -

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Charity's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the Charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, Charities Act, employment law, health and safety regulations, pensions legislation and tax legislation.

PENDLESIDE HOSPICE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PENDLESIDE HOSPICE
- 18 -

Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Ceri Dixon BSc (Hons) FCA (Senior Statutory Auditor)
for and on behalf of PM+M Solutions for Business LLP
4 November 2024
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
PENDLESIDE HOSPICE
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income and endowments from:
Donations and legacies
3
1,608,749
-
1,608,749
2,520,829
-
2,520,829
Charitable activities
4
1,140,086
17,996
1,158,082
1,134,510
51,488
1,185,998
Other trading activities
5
959,478
-
959,478
1,602,707
-
1,602,707

Investments

6
439,243
-
439,243
276,206
-
276,206
Turnover of trading subsidiary
7
936,828
936,828
104,894
104,894
Total income
5,084,384
17,996
5,102,380
5,639,146
51,488
5,690,634
Expenditure on:

Raising funds

10
519,193
-
519,193
930,138
-
930,138
Trading cost of subsidiary
9
634,411
-
634,411
89,214
-
89,214
Charitable activities
11
4,127,899
20,119
4,148,018
3,611,432
35,371
3,646,803
Total expenditure
5,281,503
20,119
5,301,622
4,630,784
35,371
4,666,155
Net gains/(losses) on investments
650,130
-
650,130
(579,418)
-
(579,418)
Net incoming/(outgoing) resources before transfers
453,011
(2,123)
450,888
428,944
16,117
445,061
Net movement in funds
453,011
(2,123)
450,888
428,944
16,117
445,061
Fund balances at 1 April 2023
13,240,019
114,866
13,354,885
12,811,075
98,749
12,909,824
Fund balances at 31 March 2024
13,693,030
112,743
13,805,773
13,240,019
114,866
13,354,885

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

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
PENDLESIDE HOSPICE
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 20 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
18
2,748,912
2,412,363
Investments
19
11,081,745
10,631,991
13,830,657
13,044,354
Current assets
Stocks
20
2,500
2,500
Debtors
21
221,258
438,985
Cash at bank and in hand
252,433
258,878
476,191
700,363
Creditors: amounts falling due within one year
22
(501,075)
(389,832)
Net current (liabilities)/assets
(24,884)
310,531
Total assets less current liabilities
13,805,773
13,354,885
Income funds
Restricted funds
24
112,743
114,866
Unrestricted funds
Designated funds
7,748,912
4,412,363
General unrestricted funds
5,359,021
8,242,559
Revaluation reserve
585,097
585,097
13,693,030
13,240,019
13,805,773
13,354,885
The financial statements were approved by the Trustees on 31 October 2024
David Brown
Helen Binns
Trustee
Trustee
Company registration number 02280991
PENDLESIDE HOSPICE
CHARITY BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 21 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
18
2,748,912
2,412,363
Investments
19
11,081,845
10,632,091
13,830,757
13,044,454
Current assets
Stocks
20
2,500
2,500
Debtors
21
221,629
440,992
Cash at bank and in hand
245,387
254,371
469,516
697,863
Creditors: amounts falling due within one year
22
(494,500)
(387,432)
Net current (liabilities)/assets
(24,984)
310,431
Total assets less current liabilities
13,805,773
13,354,885
Income funds
Restricted funds
24
112,743
114,866
Unrestricted funds
Designated funds
7,748,912
4,412,363
General unrestricted funds
5,359,022
8,242,559
Revaluation reserve
585,097
585,097
13,693,030
13,240,019
13,805,773
13,354,885
The financial statements were approved by the Trustees on 31 October 2024
David Brown
Helen Binns
Trustee
Trustee
Company registration number 02280991
The consolidated accounts of the Group include the financial statements of the charity and its subsidiary undertaking for the year ended 31 March 2024. A separate Statement of Financial Activities for the charity has not been presented because the subsidiary has taken advantage of exemption by section 408 of the Companies Act 2006. The surplus of the charity for the year ended 31 March 2024 was £450,888 (2023: £445,061).
PENDLESIDE HOSPICE
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
32
(178,987)
1,125,692
Investing activities
Purchase of tangible fixed assets
(459,162)
(97,188)
Purchase of investments
(2,028,242)
(3,443,740)
Proceeds from disposal of  investments
2,220,703
2,179,669
Investment income received
439,243
276,206
Net cash generated from/(used in) investing activities
172,542
(1,085,053)
Net cash used in financing activities
-
-
Net (decrease)/increase in cash and cash equivalents
(6,445)
40,639
Cash and cash equivalents at beginning of year
258,878
218,239
Cash and cash equivalents at end of year
252,433
258,878
PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
1
Accounting policies
Charity information

Pendleside Hospice is a private company limited by guarantee incorporated in England and Wales. The registered office is Pendleside Hospice, Colne Road, Reedley, Burnley, Lancashire, BB10 2LW.

1.1
Accounting convention

The financial statements have been prepared in accordance with the Charity's Commission, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Basis of consolidation
The consolidated accounts of the Group include the financial statements of the charity and its subsidiary undertaking for the year ended 31 March 2024. A seperate Statement of Financial Activities for the charity has not been presented because the subsidiary has taken advantage of the exemption by section 408 of the Companies Act 2006.
1.4
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.5
Incoming resources
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 24 -
Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.6
Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs are those incurred in connection with administration of the company and compliances with constitutional and statutory requirements. Cost of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% straight line
Fixtures and fittings
20% straight line
Computers
25% straight line
Motor vehicles
25% straight line

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 25 -
1.8
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the Charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 26 -
1.12
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

 

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.15

Deferred Incoming resources

Lottery income is deferred on the basis of the period to which subscriptions relate.

2
Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The main area of judgement that has a risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in relation to the valuation of fixed assets and investments.

 

3
Group donations and legacies
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Donations
954,445
-
954,445
1,009,557
Legacies receivable
639,304
-
639,304
1,511,272
Other
15,000
-
15,000
-
1,608,749
-
1,608,749
2,520,829
For the year ended 31 March 2023
2,520,829
-
-
2,520,829
PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
4
Group charitable activities
2024
2023
£
£
Operation of Hospice
1,158,082
1,185,998
Analysis by fund
Unrestricted funds
1,140,086
1,134,510
Restricted funds
17,996
51,488
1,158,082
1,185,998
5
Other trading activities
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Fundraising events
473,397
-
473,397
359,378
Other income - Shop Sales and Gift Aid
80,010
-
80,010
820,977
Hospice lottery
377,527
-
377,527
400,628
Other fundraising activities
28,544
-
28,544
21,724
Fundraising income
959,478
-
959,478
1,602,707
For the year ended 31 March 2023
1,602,707
-
-
1,602,707
6
Investment Income
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Rental income
45,936
-
45,936
30,210
Income from listed investments
178,110
-
178,110
156,691
Interest receivable
215,197
-
215,197
89,305
439,243
-
439,243
276,206
For the year ended 31 March 2023
276,206
-
-
276,206
PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
7
Other income
Unrestricted
Unrestricted
funds
funds
general
general
2024
2023
£
£
Turnover of Trading Subsidiary
936,828
104,894
936,828
104,894
8
Other material income

In the current year the 'Charity Shop sales' have been transferred to Pendleside Trading Limited, the trading subsidiary of Pendleside Hospice.

9
Gift Aid payment by trading subsidiary

The wholly owned trading subsidiary Pendleside Trading Ltd is incorporated in the United Kingdom and pays all of its profits to the charity by gift aid. Pendleside Trading Ltd operates Meals on Wheels in the community. The charity owns the entire share capital. A summary of the trading results for the year ended 31 March 2024 is:

Total
Total
2024
2023
£
£
Turnover
936,828
104,804
Operating costs
(634,411)
(89,214)
Trading profit
302,417
15,590
Gift aid payment to charity
302,417
15,590
Retained in subsidiary
-
-
Represented by:
Restricted income funds
-
-
Unrestricted income funds
-
-
The assets and liabilities of the subsidiary were:
Current assets
23,685
14,509
Current liabilities
(23,585)
(14,409)
Total net assets
100
100
Aggregate share capital and reserves
100
100
PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
10

Raising funds

Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Fundraising and publicity
Christmas cards and merchandising products
12,482
-
12,482
11,613
Publicity and brochures
33,900
-
33,900
60,050
Events expenditure
110,471
-
110,471
85,347
Bank charges
11,841
-
11,841
18,873
Telephone costs
6,382
-
6,382
4,413
Insurance costs
15,446
-
15,446
11,941
Voluntary income staff costs
186,923
-
186,923
145,924
Costs of raising funds
377,445
-
377,445
338,161
Trading costs
Prize money and commission
73,362
-
73,362
72,900
General expenses
14,591
-
14,591
25,705
Light, heat and water costs
-
-
-
29,240
Repairs and maintenance
-
-
-
10,035
Incidental expenses
8,970
-
8,970
30,830
Operating lease rentals
-
-
-
108,054
Motor and travel costs
-
-
-
5,862
Staff costs
29,172
-
29,172
296,532
Depreciation and impairment
15,653
-
15,653
12,819
Fundraising trading costs
141,748
-
141,748
591,977
519,193
-
519,193
930,138
For the year ended 31 March 2023
Cost of raising funds
338,161
-
-
338,161
Fundraising trading costs
591,977
-
-
591,977
930,138
-
-
930,138
PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
11
Group charitable activities
2024
2023
£
£
Staff costs
3,382,397
2,963,233
Depreciation and impairment
100,458
95,681
Profit/Loss on sale of fixed assets
(17,500)
-

Water

12,460
8,912

Gas and electricity

79,604
55,502

Repairs and maintenance

130,640
107,987

Recruitment

1,976
8,081

Travel expenses

38,294
36,046

Training

24,052
15,694

Healthcare

26,584
29,122

Uniforms

7,559
9,083

Telephone costs

6,383
4,412

Insurance

15,447
11,941

Medical supplies and bought in services

119,243
106,831

Cleaning costs

19,287
28,041

Office costs, stationery, postage and IT

52,408
42,842
Registration fees and subs
18,315
20,794
Incidental expenses
1,577
1,577
Irrecoverable VAT
6,706
(14,980)
Catering costs
66,756
64,036
Patient transport costs
11,567
16,622
Bank charges
6,262
7,984
4,119,834
3,623,881
Share of governance costs (see note 13)
28,184
22,922
4,148,018
3,646,803
Analysis by fund
Unrestricted funds
4,127,899
3,611,432
Restricted funds
20,119
35,371
4,148,018
3,646,803
12
Trade of subsidiary

In the year to 31 March 2024 the operating costs of the trading subsidiary amounting to £634,411 (2023: £89,214) comprised wholly of unrestricted expenditure.

PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
13
Support costs
Support costs
Governance costs
2024
2023
£
£
£
£
Audit fees
-
8,000
8,000
8,000
Accountancy
-
4,000
4,000
5,150
Legal and professional
-
16,184
16,184
9,772
-
28,184
28,184
22,922
Analysed between
Charitable activities
-
28,184
28,184
22,922
14
Net movement in funds
2024
2023
£
£
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's financial statements
8,000
8,000
Fees payable to the company's auditor for other services provided
4,000
5,150
Depreciation of owned tangible fixed assets
122,613
102,577
15
Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year, neither were they reimbursed expenses during the year. No charity trustee received payment for professional or other services supplied to the charity.

 

The total donations received from the trustees in the year was £407 (2023: £106).

PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
16
Employees

The average monthly number of employees during the year was:

Group
Group
Charity
Charity
2024
2023
2024
2023
Number
Number
Number
Number
Nursing staff - inpatient
25
22
25
22
Nursing staff - day therapy
9
8
9
8
Nursing staff - hospice at home
27
25
27
25
Nursing staff - spiritual care and medical officers
6
6
6
6
Administration staff and general managers
33
34
32
30
Ancilliary
13
12
13
12
Total
113
107
112
105
Group
Charity
Employment costs
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,081,942
2,900,533
3,081,942
2,900,533
Social security costs
273,168
288,103
273,168
288,103
Other pension costs
225,387
189,699
225,387
189,699
3,580,497
3,378,335
3,580,497
3,378,335

The key management personnel of the group comprise those of the Hospice and the key management personnel of its wholly owned subsidiary Pendleside Trading Limited.The total remuneration earned by key management personnel during the year was £251,690 (2023: £239,567).

The number of employees whose annual remuneration was more than £60,000 is as follows:
2024
2023
Number
Number
£60,001 - £70,000
2
2
£70,001 - £80,000
2
1
17
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
18
Tangible fixed assets
Group and Charity
Freehold buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
3,121,040
504,262
122,545
155,117
3,902,964
Additions
350,000
26,773
30,297
52,092
459,162
At 31 March 2024
3,471,040
530,397
152,842
137,802
4,292,081
Depreciation and impairment
At 1 April 2023
810,480
445,628
97,550
136,943
1,490,601
Depreciation charged in the year
60,024
26,574
20,362
15,653
122,613
Other changes
-
-
-
-
-
At 31 March 2024
870,504
471,564
117,912
83,189
1,543,169
Carrying amount
At 31 March 2024
2,600,536
58,833
34,930
54,613
2,748,912
At 31 March 2023
2,310,560
58,634
24,995
18,174
2,412,363

Land and buildings with a carrying amount of £1,034,903 were revalued at 31 August 2018 by independent valuers not connected with the Charity on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

 

At 31 March 2024, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £866,453 (2023 - £893,251).

 

Included in land and buildings is freehold land at valuation of £664,476 (2023 - £664,476) which is not depreciated.

PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
19
Fixed asset investments
Group
Listed investments
Unlisted investments
Total
£
Cost or valuation
At 1 April 2023
6,768,859
3,863,132
10,631,991
Additions
1,977,293
50,949
2,028,242
Valuation changes
642,415
-
642,415
Disposals
(1,804,797)
(416,105)
(2,220,902)
At 31 March 2024
7,583,770
3,497,976
11,081,746
Carrying amount
At 31 March 2024
7,583,770
3,497,976
11,081,746
At 31 March 2023
6,768,859
3,863,132
10,631,991
Charity
2024
2023
£
£
Other Unlisted Investments:
Marsden Building Society
1,019,764
1,000,014
Close Brothers
624,013
592,814
Handelsbanken
1,854,199
2,270,304
3,497,976
3,863,132
Group
Group
Charity
Charity
2024
2023
2024
2023
Other investments comprise:
£
£
£
£
Investments in subsidiaries
-
-
100
100
All the listed investments are quoted on the UK Stock Exchange. Other fixed asset investments are Bank and Building Society balances.
The charity holds the whole of the issued share capital of Pendleside Trading Limited (company number: 13019012), a company registered in England and Wales. Its principal activity is that of a food retail service and charity shop sales.
20
Stocks
Group
Group
Charity
Charity
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
2,500
2,500
2,500
2,500
PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
21
Debtors
Group
Group
Charity
Charity
Amounts falling due within one year:
2024
2023
2024
2023
£
£
£
£
Trade debtors
31,532
100,121
17,117
91,424
Amount owed by parent undertaking
-
-
17,010
12,009
Other debtors
115,818
263,727
115,818
263,727
Prepayments and accrued income
73,908
75,137
71,684
73,832
221,258
438,985
221,629
440,992
22
Creditors: amounts falling due within one year
Group
Group
Charity
Charity
2024
2023
2024
2023
£
£
£
£
Trade creditors
62,698
88,430
62,698
88,430
Other creditors
218,445
124,649
215,470
124,649
Accruals and deferred income
219,932
176,753
216,332
174,353
501,075
389,832
494,500
387,432
Deferred Income
Group
Charity
Deferred income at 1 April 2023
69,061
69,061
Movement in the year
31,469
31,469
Deferred income at 31 March 2024
100,530
100,530
The deferred income balance of £100,530 (2023: £69,061) as at 31 March 2024, includes £71,074 (2023: £68,231) which relates to the lottery fund and £29,456 (2023: £830) which relates to customer sponsorship/events.
23
Retirement benefit schemes
Defined contribution schemes

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

 

The charge to profit or loss in respect of defined contribution schemes was £225,387 (2023: £189,699).

 

PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 36 -
24
Restricted funds
Group and Charity

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Movement in funds
Movement in funds
Balance at
1 April 2022
Incoming resources
Resources expended
Balance at
1 April 2023
Incoming resources
Resources expended
Balance at
31 March 2024
£
£
£
£
£
£
£
98,749
51,488
(35,371)
114,866
17,996
(20,119)
112,743
25
Analysis of net assets between funds
Group and Charity
Unrestricted funds
Designated funds
Restricted funds
Total
£
£
£
£
Fund balances at 31 March 2024 are represented by:
Tangible assets
2,656,170
2,748,912
92,742
5,497,824
Investments
3,332,833
5,000,000
-
8,332,833
Current assets/(liabilities)
(44,984)
-
20,000
(24,884)
5,944,019
7,748,912
112,742
13,805,773
Unrestricted funds
Designated funds
Restricted funds
Total
£
£
£
£
Fund balances at 31 March 2023 are represented by:
Tangible assets
2,317,497
2,212,363
94,866
4,624,726
Investments
6,219,628
2,000,000
-
8,219,628
Current assets/(liabilities)
290,531
-
20,000
310,531
8,827,656
4,212,363
114,866
13,154,885
PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 37 -
26
Summary of Group Funds
Group and Charity
Movement in funds
Balance at 1 April 2023
Incoming resources
Resources expended
Transfers

Gains and losses

Balance at 31 March 2024
£
£
£
£
£
£
Designated funds
4,412,363
-
-
3,336,549
-
7,748,912
General funds
8,827,656
5,084,384
(5,281,503)
(3,336,549)
650,130
5,944,118
Total unrestricted funds
13,240,019
5,084,384
(5,281,503)
-
650,130
13,693,030
Restricted funds
114,866
17,996
(20,119)
-
-
112,743
13,354,885
5,102,380
(5,301,622)
-
650,130
13,805,773
At the year end, the restricted funds carried forward represent £20,000 (2023 - £20,000) relating to the Frank Houghton fund. The remaining funds reflect the net book value of fixed assets funded by grants.
Trustees have considered future challenges of managing a budget deficit, coping with the potential increase in demand for services and complexity of need of people accessing Hospice services, training and development needs of staff and development of the Reedley Hall site and has designated £5million of its reserves, plus the value of the charity's fixed assets towards service lines, training and development of staff and development of the Reedley Hall Site.
27
Contingent Assets

At the year end, the Charity was aware of a number of legacy donations which had been made to the Charity. However the residual legacy donation in each case cannot be measured reliably leading to uncertainty over the total level of income which will be received. In these cases no income has been accrued at the year end.

28
Operating lease commitments

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Group
Charity
Charity
2024
2023
2024
2023
£
£
£
£
Within one year
57,329
57,799
57,329
57,799
Between two and five years
171,333
180,500
171,333
180,500
In over five years
60,250
102,250
60,250
102,250
288,912
340,549
288,912
340,549
PENDLESIDE HOSPICE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 38 -
29
Related party transactions

During 2022/23, Pendleside Hospice entered into a collaboration with 8 other hospices located in the Lancashire and South Cumbria region. Pendleside Hospice was nominated to hold the funds used to finance the activities of the collaborative and to pay the salaries of any staff directly employed for this initiative. The balance relating to the collaboration, which was included in the creditors figure at the year-end, was £85,887 (2023: £115,000).

30
Controlling party

The Charity is under the control of the trustees as noted in the trustees’ report.

31
Analysis of changes in net funds

The Charity had no material debt during the year.

32
Cash generated from operations
2024
2023
£
£
Surplus for the year
450,888
445,061
Adjustments for:
Investment income recognised in statement of financial activities
(439,243)
(276,206)
Fair value gains and losses on investments
(642,215)
726,888
Depreciation and impairment of tangible fixed assets
122,613
102,577
Movements in working capital:
Decrease in debtors
217,727
77,907
Increase in creditors
111,243
49,465
Cash (absorbed by)/generated from operations
(178,987)
1,125,692
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