The Trustees' Annual Report and audited financial statements for the year ended 31 March 2024 reflect the continued dedication of the Ayrshire Hospice in delivering high-quality palliative and end-of-life care to the communities we serve. It has been an industrious year, with much to look forward to, particularly the completion of our Capital Build Project at Racecourse Road. This new, contemporary space will provide a welcoming and beautiful environment for our patients, their families, and our dedicated staff and volunteers as we return to our traditional home.
We are also proud to celebrate the results of our first Care Inspectorate inspection for the Respite and Response service, registered in 2022. The service received one Excellent and three Very Good gradings, a remarkable achievement for a first inspection. The Care Inspectorate highlighted the exceptional skill and dedication of our Community and Respite and Response teams, who provide compassionate, person-centred care to patients and their families in their own homes. This recognition is a testament to the outstanding work these teams carry out daily, offering much-needed support and respite for carers and allowing families to focus on what truly matters. We are immensely proud of these results, which reflect the high standards of care we continue to uphold.
Despite being temporarily decanted from our primary facilities, the Hospice has operated business as usual, with our In-Patient Unit based at East Ayrshire Community Hospital in Cumnock, and other departments operating from the Lochranza building at University Hospital Ayr and Miller Road in Ayr. We are also proud to have expanded our Living Well service, now operating hubs in North, South, and East Ayrshire, which allows us to reach and support more people across the region.
In the face of rising demand for palliative and end-of-life care, the Hospice remains resilient and continues to adapt to the challenges of the current economic climate. The cost-of-living crisis and an increasingly difficult funding landscape present uncertainties, yet we remain committed to our mission of providing compassionate, person-centred care. Every donation, whether large or small, is deeply appreciated and spent with great care to ensure maximum impact for those we serve.
We are immensely grateful to our staff, volunteers, donors, and supporters, whose unwavering dedication enables us to meet these challenges head-on. Together, we continue to innovate and find new ways to support our communities across Ayrshire, ensuring that we remain strong and resilient for the future.
The trustees present their report, incorporating their Strategic report and accounts 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 Ayrshire Hospice's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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).
Our strong partnerships with NHS Ayrshire and Arran (NHSA&A) and our Health and Social Care partners across North, South and East Ayrshire continue and we have been privileged to work together on the Pan Ayrshire Palliative and End of Life Care Strategy which has been concluded this year for roll out next year across the locality.
NHS Ayrshire and Arran has been a generous partner and we have been supported to remain in our temporary inpatient “home” at East Ayrshire Community Hospital (EACH) slightly longer than has previously been anticipated with lease arrangements concluding early in 2025. The Lochranza Building at the Ailsa Hospital continues to be a beneficial space for both community nursing and medical teams as well as for other staff who support our operational delivery, however we will be delighted to return to our re-developed offices. Our fundraising and Capital Build teams are located at Miller Road in Ayr and will remain there until their move into Racecourse Road. The fundraising team have never worked alongside clinical staff before so there is real excitement amongst staff that this will represent some great opportunities and improved understanding of our clinical care and of each others’ roles and their interdependencies.
The Ayrshire Hospice's Charitable Purpose
Since its establishment in 1989, Ayrshire Hospice has maintained its three key primary purposes
Provide specialist palliative care and services to people and families affected by life-limiting illness.
Promote the advancement of palliative care and end of life care.
Promote the Hospice movement.
The Ayrshire Hospice’s Ambition
The ambition of Ayrshire Hospice is to ensure that every adult with palliative and end of life care needs, and those people most important to them, will receive timely and equitable access to high quality services, delivered by appropriately trained staff and volunteers.
Within the current three-year strategy, we are proud to continue to focus on the strategic direction and heritage of Ayrshire Hospice. We re-affirm our ongoing commitment to provide exceptional standards of care whilst being adaptive and agile in the care landscape so that we can deliver care when nobody else can.
Providing specialist palliative and end of life care is the care that we deliver best, and has been in our DNA since Ayrshire Hospice first opened its doors in 1989. We go the extra mile, travelling with people, supporting them at every stage of their experience with life-limiting illness.
The current strategy is a living document which we continue to focus on. It will take Ayrshire Hospice through a transformational period in its history. Although we are building a centre of excellence on the site of our traditional home in Racecourse Road, Ayr; Hospice care is not defined by a building. Our care and services are evolving into a community centred model mirroring the needs and wishes of those we care for, ensuring we can support those people affected by a life-limiting illness in ways that are right for them.
Our strategic objectives centre around people, care, partnership and sustainability. Over the coming years we will continue to adapt how we work in order to maximise the skills of the talented Ayrshire Hospice team to best meet the needs of those for whom we provide such vital care and support.
In summary, our 2023-2026 strategic objectives are:
1. Continue to improve, adapt and enhance our patient-centred care.
2. Developing our workforce and people to become an employer of choice.
3. Work with our partners to extend our influence and improve understanding and support for patients and families.
4. Secure the financial, operational and environmental sustainability for the organisation.
To achieve our vision of equitable access to high quality services across Ayrshire & Arran, the Ayrshire Hospice will continue to identify opportunities to communicate the range of services that the organisation provides. Clinical teams have participated in community events highlighting the numerous hospice services available i.e. legacy events, woman’s guilds, church and support group meetings. Demystifying some of the stigmas around hospice care and tackling knowledge gaps both within the general public and clinical partners will be crucial in efforts to reach a broader demographic across the region.
The Assisted Dying Bill and its very detailed consultation has seen the Hospice sector come together in collective response. It is not for Ayrshire Hospice to comment on any possible outcome from the Bill but to consider any statutory obligation and governance very carefully that may result from the Bill and the next steps of any proposal. The role of Hospice Company Directors to provide governance and strategic direction during this time will be crucial.
Clinical teams have co-designed and co-produced many elements within the Capital Project from design layout to bedroom colour schemes to staff uniform choices. New specialist mattresses and beds will be procured. This work ensures life cycle costs are considered alongside patient comfort and dignity with cuddle beds allowing families to be together in bed at the end of life and ensuring that staff moving and handling and safety were also considerations.
We continue to successfully strengthen our relationships with our external partners both clinically and across our whole organisation. Specifically, we continue to do this by:
Collaborative efforts with peer organisations to explore funding opportunities, including advocacy at Scottish Parliament level.
Advancing patient care and caregiver support with NHSA&A and Health and Social Care Partnership colleagues.
Expanding our existing affiliations with acute hospitals to reduce avoidable admissions and expedite hospital discharges.
Sharing our expertise and knowledge through educational programs and advisory services.
Enhancing our support for care homes by leveraging technology and initiatives such as Project ECHO to facilitate the exchange of best practices.
Seeking opportunities to establish connections with other Third Sector Organisations to foster effective partnership working going forward.
Regulators
In 2022 Ayrshire Hospice achieved dual regulation with both Healthcare Improvement Scotland and the Care Inspectorate as regulators for our Respite and Response service.
2024 saw the first inspection from the Care Inspectorate for the Respite and Response Service which allowed us to showcase excellence and achieve high level recognition for the quality of care this service provides across the communities in Ayrshire & Arran.
The Health Improvement Scotland team have visited the site at Racecourse Road and inspected the plans giving their input into various components to ensure Health and Safety regulations and Infection Control standards are fully met within the design and that spaces are utilised to ensure privacy and dignity for our patients and their loved ones.
April 2023 - March 2024 and Care delivery achievements
The story of our care is not simply about numbers but the impact of what we contribute to our local health and care system is measurable. The quality of this care and the impact it has for patients and to our NHS partners and Health and Social Care teams is not always tangible but the economic case for our work has to be quantified. Our specialist palliative and end of life care services allows generalist palliative care to be delivered by others and enables our teams to focus what we do for those who need our expertise the most.
Care in the In-Patient Unit
Between 1st April 2023 and 31st March 2024 there were 3,563 occupied bed days provided by the Ayrshire Hospice. Compare this to the 2022/2023 period with 2,966 occupied bed days – this is an increase of 20% from the prior year.
On occasion the Ayrshire Hospice requires to admit patients as an emergency (same day) admission; the reasons for this are multifactorial with symptom control, psychological angst and distress or sudden deterioration amongst some of the clinical rationale.
There were 139 admissions during this period and 88 of those were admitted within 24 hours of referral review. It is felt very likely that had these 88 patients not been admitted into the care of Ayrshire Hospice they would have been admitted into the Acute hospital sector. Our contribution to avoiding acute unplanned admissions is in this parameter measurable for the first time. This does however exclude patients we care for at home.
45 patients were admitted to the Hospice directly from the 2 Acute Hospitals within our locality. The median length of stay of this patient group was 9.5 days and 33 of them died in our care.
Care in the Community
During the current year, 2,306 Rest and Respite visits for End-of-Life Care were made to 284 individual patents, the Hospice Care team being the sole provider of care for 77% of these patients.
The number of patient visits at home made by our Specialist Palliative Care Nursing team was 3,108.
178 Medical visits were conducted by our Community Consultant compared to 127 visits the previous year, reflecting the growing need for community medical expertise.
421 patients attended one of our Living Well Hubs across Ayrshire & Arran compared to 414 in the prior year.
The geographical breakdown of these visits is as follows:
| North | East | South | Not assigned |
| % | % | % | % |
Rest and Respite | 35 | 27 | 38 | - |
Specialist Palliative Care team | 37 | 29 | 33 | 1 |
Community Consultant | 42 | 28 | 37 | 3 |
Living Well Hubs | 28 | 26 | 46 | 1 |
232 individuals were referred for counselling during the year, comprising 173 adults and 59 children. Having introduced a new children’s counsellor in the prior year, this service has grown organically with obvious demand and may require further resources in future years.
The support provided to schools across Ayrshire & Arran by the children’s practitioner was as follows:
| Secondary Schools | Children Supported | Primary Schools | Children Supported |
| No. | No. | No. | No. |
South Ayrshire | 8 | 5 | 41 | 7 |
North Ayrshire | 10 | 6 | 58 | 8 |
East Ayrshire | 7 | Not required | 40 | 4 |
During 2023/2024 Ayrshire Hospice successfully delivered district nursing education for 127 NHSA&A nurses who attended 7 sessions delivered over the course of the year. This programme was delivered as part of our continued commitment to palliative and end of life care education and our desire to continue building strong partnership relationships. This does however evidence the demand and potential for such education services to generate income in the future.
Our People
We are passionate about what we do and work closely with those we serve, our communities, and partners and aim to reach all those who might benefit from our exceptional, person-centred care. This passion is reflected in our vision, purpose, values and commitments. Our staff team and volunteers do what they do every single day because of that passion, to provide the best care and service for patients and their families. Our values are built into everything that we do and evidence how people remain at the heart of the Ayrshire Hospice. Our values are "we are kind and compassionate, we are honest and we are inclusive" and we robustly discuss behaviours and decisions around values whilst caring for each other and ensuring that we are always doing the right thing in line with our values. We strive to be known as the best employer within the third sector and we feel very confident that we are viewed positively by our peers and our staff team. We have received external recognition this year from the Ayrshire Chamber of Commerce as we were privileged to be nominated as a finalist for Charity of the Year award. We were also delighted to win S1 jobs recruitment award for Charity Employer of the Year. This reflects the hard work of our teams.
We are currently in the midst of our Capital Build Project to ensure that our Hospice Home reflects the standards of a 21st Century care environment and truly aligns with the needs of patients, families, staff, volunteers and local communities. We understand that this has been a challenging time for our staff as we have been in "decant" and are all separated. All of our staff have been given opportunity to be involved in discussions around their needs, their team requirements and their service needs to ensure that we are living and breathing our values of being inclusive and honest with our workforce. As well as ongoing video updates from the CEO and leadership team on the build, roadshows have been held so staff could input and ask questions. So far, nearly 40% of our workforce have been invited to join us on-site to see the building coming together for themselves which made for many happy and emotional faces - literally seeing the development of what will be a wonderful place to work and what will allow our staff to embrace the community and continue to excel in our care giving to the communities of Ayrshire.
We strive to be an employer of choice, we want people to be happy in their workplace and reward and recognition is key to this. We have therefore recently launched an enhanced benefits package inclusive of a health benefit, high street savings, credit union, buying holidays, enhanced family leave, cycle to work and a technology scheme. We also offer all staff a "forget me not" day which is a day a year for staff to take time to reflect on a loved one they have lost, to remember their legacy and to reminisce on those special memories made and we feel as a Hospice, it’s important to always support staff to connect to the reason we do what we do - to celebrate life.
The organisation is passionate about growth and learning, not just professional qualifications and training courses but personal development and we foster a nurturing environment recognising that each role is challenging and we want to ensure our workforce are supported. The organisation has also ring-fenced training funds as part of a previous leader's legacy to allow staff to apply for this for their professional and personal development. This is open to all staff and is encouraged to be utilised by them to ensure we truly have a supportive growth culture.
In 2024, we launched an innovative recruitment system which allows our culture to shine through from our first interaction with candidates, allowing us to foster a stewardship approach from application to induction. Previously our recruitment process was bureaucratic and very much process led however in 2023 we overhauled, streamlined and injected a more person-centred approach to our recruitment and vetting processes, which is more reflective of our culture. We also worked with S1 to launch our video showcasing our people and culture which was fantastic. We are proud that we have received positive feedback from successful but also from unsuccessful candidates who felt our recruitment process was dynamic, values led and friendly - we want each person to leave with a positive view of our wonderful Hospice and hopefully our paths cross again in future.
Building on our biggest asset, our strong workforce of staff and volunteers, Ayrshire Hospice is well placed to evolve in order to meet the changing environment for palliative and end of life care delivery. Embedding a values-based culture is not a small task but tangible progress has been made ensuring that all staff and volunteers understand the importance of being kind and compassionate, honest and of being inclusive. With this approach in mind, our People Strategy is currently being developed focussing on ensuring that we create a dynamic and innovative workforce that continues to possess the right skills, knowledge, expertise, attributes and tools. It is well evidenced that satisfied and committed staff deliver outstanding service therefore, the delivery of this strategy is fundamental to the Ayrshire Hospice’s ability to deliver exceptional care.
The People Strategy focuses on the following components:
Recruitment & Recognition
Attracting and retaining our people with an attractive salary and benefits, recognising good performance and promoting a work/life balance. Ongoing recognition of staff to ensure an agile, innovative workforce who all contribute to exemplary care for our patients and families.
Talent Management & Wellbeing
Motivating and engaging our people with learning and development for required skills and the adaptability and agility for change. As well as providing a safe and healthy environment placing wellbeing at the heart of staff and volunteer experience
Leadership & Engagement
Nurturing a culture where our team are inspired, well informed and involved in decisions which affect them and that all our Hospice family are treated fairly and in line with our values
We are an ambitious and visionary organisation and this strategy seeks to mirror that. Our strategy will support a culture of ‘can do’ and ‘continuous improvement’ that enables engaged and competent staff to deliver and support outstanding clinical care.
Supporters are often bereaved and yet motivated to fundraise for our charity, 2024 saw training delivered to fundraising teams to help support them to better understand the process of grief and in turn support our supporters.
Partnerships
2024 has seen new partnerships for the Hospice and new events raising funds where we have tried to establish what the community want and have really worked with fundraisers to support their journeys with improved social media presence. Partnership with other local charities in joint ventures will be seen later in the 2024 event planner. The list below gives examples to provide a sense of some of the partnerships developed during this period. It is not exhaustive and in addition to this many businesses provide essential sponsorship for the Ayrshire Hospice.
TG Convenience Stores
TG own a local service station and support the Ayrshire Hospice as Charity Partner on an ongoing basis. They also offer a discount to hospice staff and volunteers to receive money off petrol. A recent review meeting has seen them continue this partnership in 2024-25 with plans to take part in Go Purple.
The Fox & Willow
The Fox & Willow nominated the Hospice as their Charity of the Year donating funds from “round up” payments added to customers’ bills, as well as proceeds from “the Hospice cocktail”.
Fosters Funeral Directors
Fosters Funeral Directors often request donation boxes to support bereaved families for funeral collections. They have also previously sponsored the Light up a Life Christmas concert on two occasions. The team met with Fosters and they mentioned that, not dissimilar to the Hospice, a challenge they face is trying to reduce stigma and myths surrounding their organisation within the community. One of the ways they do this is through occasional book swap events. We offered to donate some books (via Retail) if they ever required them for their events. Fosters got in touch at a later date and we were delighted to supply a range of books. They appreciated that we were willing to work with them and valued the hospice “giving back” to Fosters and the community.
Solicitors
Once again, we were fortunate to benefit from the support of 18 solicitors across Ayrshire and Arran through the Make a Will Fortnight, where they generously waive their fee in return for individuals donating to the Ayrshire Hospice to make or update their Will. £25,129.99 gross was raised in 2023-24 which is truly valued particularly as this marked the Ayrshire Hospice’s ninth year of the campaign.
Local community groups
Twenty-four talks on the hospice were delivered by the fundraising team to community groups in 2023-24, thanks to the support of the Church of Scotland Guilds, Women’s Institutes, Opportunities In Retirement and Rotary Clubs. These visits generated income of £1,909 while enabling us to promote the exceptional hospice services, fundraising activities, the capital build and planting the seed and importance of gifts in Wills.
Partnership with other local charities in joint ventures will be seen later in the 2024-25 event planner, the following are all within the income generation plan and this detail is given to showcase ongoing collaborative work:
Charity Joint Ventures
Colour Dash 2024 – Hosted in June 2024 in collaboration with Ayrshire Cancer Support
It’s A Knockout 2025 – Provisional event in 2025 (currently in planning stage) that we are looking to work with other charities on.
Ayrshire Charities Forum – Looking to launch in late 2024 where we would create a forum with other Ayrshire based charities to share best practice, ideas and collaborate together on future events.
Charity of the Year
The following have selected Ayrshire Hospice as Charity of the Year;
Hannahston Alpacas – From July 2024. Hosting Various fundraising events throughout the year
Loudoun Golf Club – From March 2024. Hosting various golf events throughout the year
Park Dean, Sundrum Castle Holiday Park – From January 2024. Hosting Charity Events throughout the year
Horwich Farrelly – From January 2024. Staff participating in various fundraising activities throughout the year
McDonalds, Kilmarnock – From January 2024. Hosting fundraising events throughout the year
Alex Begg & Co – From January 2024. Staff participating in various fundraising activities throughout the year
Ladies Section Seafield Golf Club – From March 2024. Hosting various golf events throughout the year
Taylor & Henderson – From April 2024. Staff participating in various fundraising activities throughout the year
The Original Factory Shop – From May 2024. Hosting events throughout the year
The launch of new products will be a key part of the income generation strategy journey in 2024/2025 and defined within the new Income Generation Strategy.
Members of the Ayrshire Hospice leadership team volunteer within North Ayrshire through the mentorship of young people, giving back to our young people within our community. The strategy outlines our hope for improved working with young people and better diversity in our workforce, partnership with colleges and introduction of apprenticeships will be key to meet these goals.
Growth in volunteer numbers beyond that which existed prior to the pandemic will be necessary for the Ayrshire Hospice to operate the new Racecourse Road facilities and this period has seen planning for a large-scale recruitment campaign later in 2024. Volunteers continue to be key throughout our charity and support Retail, Fundraising and Clinical departments.
Sustainability
Our needs and objectives around increasing awareness of Ayrshire Hospice and the services we provide has now been scoped in a large website development project during this time period. Refreshed focus on our digital channels is apparent and during the latter part of 2024/2025 Ayrshire Hospice will launch a new website with the following objectives
To better support healthcare professionals and their education.
To improve ease of signposting and referral for healthcare professionals and our community
To better act as a resource for patients and families as a point of information and referral
To enhance income generation for fundraisers
To develop a shopping platform for new goods
To inform our community around our performance and strategy
The operations teams at the Hospice have had a focus on efficiency and this will continue into next year seeking service improvements. Projects such as going paper lite, reviewing our fleet of vehicles and introducing electric vehicles as well as streamlining our tender and partnership agreements to ensure good governance and value for money are all ongoing. Understanding the operational expenditure of our new building and refining this will be a key component of finalising commissioning later in 2024.
Acknowledgements
From business ambassadors to musicians we have come together during this year to both celebrate our Hospice, reward our staff and volunteers and to raise money for our charity. Our community of all ages has been motivated to bake, run, walk, climb and swim alone and in groups to support palliative and end of life care. The African philosophy called Ubuntu resonates with our team and our community, Ubuntu in Nelson Mandela’s words is about “enabling the community around you to improve lives”.
Ubuntu is the essence of being human and it speaks particularly about the fact that you can’t exist as a human being in isolation. It speaks about our inter-connection with each other and our gratitude. You can’t be human all by yourself, and when you have this quality in Ubuntu you are known for your generosity. We are very grateful to all our staff and volunteers who support our work at the Ayrshire Hospice.
When someone is diagnosed with a life limiting illness this diagnosis changes plans and dreams for the future. Hospice care teams cannot change a diagnosis, but we can strive to help the person see that living with a life limiting diagnosis can still be hopeful that joy can be found in every day. The Hospice teams are the embodiment of empathy and professionalism. We as a Hospice team cannot and do not exist in isolation and are humbled by the daily support from our community.
Principal Funding Sources
It costs approximately £25,000 each day to run the Hospice’s facilities and services. The Hospice is partly funded by a contribution from NHS Ayrshire and Arran towards certain core services. In the year to 31 March 2024, this funding amounted to £3,771,360 (2023 - £3,579,153), an annual increase of 5.4% on the previous year. We are appreciative and dependent on this funding and value our close relationship with NHSA&A and recognise the significant financial constraints under which the NHS operates.
Nonetheless, NHS funding does not meet the full costs of the salary awards made to healthcare workers and medical staff and this is a constant tension for Ayrshire Hospice.There is evidence that since a decision was made to mirror NHS salary bandings at Ayrshire Hospice that recruitment and retention of staff have improved. However, this has an obvious impact on operating costs. Accordingly, we depend on the continuing generosity of our donors, partners and the many trusts and foundations who contribute to our costs through attendance at fundraising events, donating legacies and giving direct donations of both cash, and goods to sell in our shops, as well as providing substantial grants and awards. In the year to March 2024, fundraising towards our ongoing services raised £3,122,519 (2023 - £3,101,516) and our retail shops’ income was £1,578,048 (2023 - £1,507,378).
In addition to the need to fund our day-to-day operations, the Hospice is undertaking the construction of a new facility at Racecourse Road, Ayr. Fundraising towards this Capital Build Project totalled £1,508,890 in the year and we are especially grateful to The Coldstone Trust for its generous grant of £1 million towards the project, which is included in designated income for the year. In the previous year, we received a non-recurring grant of £4 million which as included in designated income in that year.
Result for the year
Before taking account of finance income and the unrealised gain on investments in the year, the Hospice sustained a deficit on unrestricted funds of £149,377 on our day-to-day activities. While executive management has striven to manage our cost base, the impact of general UK inflation, continuing pressure on utility and insurance costs, and the substantial unfunded medical salary award has placed a substantial strain on our budgets.
However, the overall result for the year has been bolstered by the unrealised gain on the value of our investment portfolio which saw it increase by £632,348 at the year end. In addition, dividend income and bank interest yielded £620,834. The Hospice’s final operating result is a surplus of unrestricted funds of £1,103,805 for the year (2023 - deficit of £73,226).
Balance Sheet
The Hospice’s financial position at 31 March 2024 remains strong. The value of our investment portfolio has rebounded from the fall in the previous year and stands at £10,578,287 at the year end (2023 - £9,702,912). Our total cash balances amount to £14,319,447 although £4,234,864 of these is specifically ring-fenced for the Capital Project.
At the year end, expenditure on the new Hospice Capital Build Project amounted to £8,329,090. At the date of this report, that figure has risen to over £15 million and is expected to reach around £19 million at completion towards the latter part of 2024-25. This expenditure will inevitably deplete our cash balances. However, we are confident that there will be no requirement to liquidate any of our investment portfolio to fund the project.
Debtors at the year-end show a considerable increase from last year. This is due to the VAT recovery percentage on the new-build project not having been agreed to by His Majesty’s Revenue and Customs. After the year end, this was approved, and over £1 million was recovered.
Investments
The Hospice’s investment strategy remains to invest in low to medium risk funds and stocks and that capital appreciation of the fund exceeds inflation. The volatility of stock markets results in this aspiration being challenging. During the year, the Company Directors resolved to reduce the overall cost of our fund managers and following a review, appointed Brewin Dolphin as the sole manager of the portfolio. The performance of the portfolio continues to be reviewed quarterly and regular meetings are held with senior representatives of the fund manager.
The Hospice’s investment assets continue to be held as part of a structured investment portfolio and are screened for environmental, social and governance factors. The portfolio is structured to ensure that the main objectives of the Hospice around the provision of care are not impinged, and the Company Directors specifically require that no investments be held in tobacco, armaments, pornography or other unethical sectors or areas specifically covered by UK Government embargoes or restrictions.
Going concern
In preparing these financial statements, the Company Directors have had regard to the financial position of the Hospice as evidenced in the balance sheet on page 27, to the detailed budgets prepared for the following year to March 2025, to the likely sources of income during that period, and to the funding required and available to complete the capital construction project commenced in 2023. The Company Directors are satisfied that the presentation of the financial statements of the Hospice on the going concern basis is appropriate, and accordingly the financial statements have been prepared on that basis.
Reserves Policy
Unrestricted funds are held in reserve to aid the charity in managing future financial uncertainty and the financial impact of identified key organisational risks. This includes uncertainty around the future income of the Hospice, financial liabilities which the charity holds, and potential major cost pressures associated with key service risk factors.
The Board aspires to maintain a target level of unrestricted funds equivalent to one year’s unrestricted operating expenditure. This is, however, becoming increasingly difficult to sustain due to increasing cost pressures. At the year end, the balance on unrestricted funds amounted to £8,772,855 (2023 £7,654,885). This equates to just under 12 months projected operating costs for 2024/25. There are also designated funds totalling £15,364,786, which over time will be transferred back into unrestricted funds following completion of our capital build project.
However, in the short term, our free unrestricted reserves will be depleted and currently stand at around £3.1million, (i.e. after recognising capital commitments) representing four months’ forecast operating costs, although we could reallocate some of our £1.3million of designated funds to unrestricted, if necessary, to improve this position.
Forecast financial position for 2024/25 and future developments
The Hospice is forecasting a small unrestricted deficit for the coming year. There are continuing pressures on staffing budgets, and ongoing specific inflationary impacts around utilities and insurance. Lower cash balances will consequently result in reduced interest income. Charitable retail operations are undergoing a difficult period for sales, and the Hospice’s shops are no exception. Executive management is confident, however, that appropriate measures can be put in place to address these challenges to limit the extent of the Hospice’s financial exposure.
We have reached agreement with NHS A&A with regards to their contribution for 2024/25 which includes an inflationary uplift of 2%. While welcome, this adds additional pressure to increase external fundraising to support our operations as our unrestricted expenditure is projected to increase by nearly 4% and national pay increases in particular are expected to be far in excess of 2%.The Company Directors are hopeful that the value which charitable hospices add to healthcare provision will be appreciated by the Scottish Government in that fair and sustainable long-term funding arrangements can be put in place for the future to replace the NHS CEL 12 arrangements.
To recognise the need to expand the Hospice’s income generation and to reduce exposure to unnecessary risk to our main operations, a subsidiary trading company, Gargowan Limited, named after our original building at 35 Racecourse Road, has been formed after the year end. This wholly-owned subsidiary is currently not trading, but it is anticipated that it will begin to operate as the Hospice's income generation portfolio develops.
Our Capital Build Project will be completed within the financial year to 31 March 2025 and despite the anticipated budgeted deficit, our balance sheet will remain strong, albeit the composition of assets will be different from previous years, with a larger amount invested in tangible fixed assets and less cash. The Board remains committed to providing, as far as possible, pay and conditions equivalent to those working in the NHS and has designated funds to improve non-cash benefits for our staff, recognising their importance to the Hospice. We have reached agreement to modify the repayment terms of the loan from the Scottish Government for our capital project which will now see repayments being made over forty, rather than thirty years. This is of considerable benefit to the Hospice’s cash flow, and we are grateful for the Scottish Government’s approval of this change.
The Ayrshire Hospice remains well placed to meet the important challenges ahead.
The Directors are confident that in the event that our income reduced, that the Hospice balance sheet is sufficiently robust that it would continue to operate as a going concern with a reduced level of ‘free reserves’ remaining available and designated funds utilised where appropriate. Cash flow projections and related sensitivity analysis have been undertaken and reviewed with the auditors.
Risk Management
The Hospice Board undertakes a structured review of strategic risks during each committee cycle. This cycle of review enables the Board to consider and assess the key risk areas across the organisation and determine our appetite towards risk for each of those areas and aspects of the charity’s operations.
During 2024 the Board held a successful and well attended Risk Appetite workshop and agreed a Risk Appetite Statement for Ayrshire Hospice which underpins our approach to managing our strategic risk register. This Risk Appetite Statement was formally approved by the Hospice Board on 22nd January 2024 and will be reviewed annually.
Our risk register is hosted on a data management software module, providing a comprehensive platform for recording, assessing, and managing risks across all areas of the organisation, which effectively manages all of our identified risks in one central location. Regular reports are produced for each of our governance committees which monitor the risks identified in each key risk area and ensure the necessary steps can be taken to mitigate those risks.
The key strategic risks for 2023/2024 for the Hospice are:
Failure to forecast and evaluate risks within clinical services, resulting in a catastrophic outcome;
Insufficient cash to continue to deliver ongoing and future palliative care;
Insufficient disaster recovery and business continuity planning in place resulting in an interruption of continuous service;
Inability to recruit, train and retain an effective workforce;
Non-Compliance with Laws & Regulations resulting in compromised safety, service, or liability (includes patients, staff, Company Directors, volunteers, donors and the general public);
Failure or delay of Capital Build Project, resulting in an inability to meet the future needs of those living with life limiting illness across Ayrshire and Arran;
Reputational damage leading to lack of public confidence;
Lack of innovation and investment impacts on the future capability of the Hospice.
These risks have all been mapped against our Risk Appetite Statement.
Risk reports are produced for each governance committee in order to monitor and scrutinise the risks identified and ensure the necessary steps can be taken to mitigate those risks. Risk is a standing item on every Hospice Board agenda with an overarching Risk report presented for discussion and approval.
How Our Charity Is Governed
The Ayrshire Hospice is both a registered charity in Scotland and a company limited by guarantee (with no share capital).
The Hospice company is established under its Memorandum of Association which lays out the charitable objects and powers of the company. It is governed by its Articles of Association which set out the legal and organisational procedures to which its administration must adhere.
The trustees, who are also the directors for the purpose of company law, and who served during the year and changes since the year end were:
Membership of our Board
The Board seeks through its membership to be as balanced a representation of the community as possible. It seeks to be proactive rather than reactive in achieving an appropriately diverse membership and work is ongoing in this regard.
The Company Directors report that there are no related party transactions in the year which require to be disclosed.
Organisational Structure
The Directors of the charitable company (the charity) are its Board Members for the purpose of charity law and throughout this report are referred to as the Company Directors, or collectively as the Board. The Company Directors meet a minimum of four times a year. Day to day operational responsibility is delegated to the Chief Executive and the Leadership Team, all of whom attend meetings of the Board and its sub-committees. There is a clear reporting structure whereby senior staff members with defined responsibilities report to the Chief Executive who in turn reports to the Chair and the Board.
Every Company Director is a member of the company. As the company is limited by guarantee it does not have share capital, therefore none of the Company Directors hold any shares.
The CEO and Leadership Team (Key Management Personnel) consists of:
Tracy Flynn - Chief Executive Officer
Chris Rodden - Director for Patient and Family Services
Liz Denovan - Director of Operations
Dr Cat Kilin - Lead Consultant
These Directors, although designated as Directors, are not statutory Company Directors.
Within the wider Leadership team is the Head of Finance, Head of HR, Head of Communications and Marketing, Spiritual Lead, Lead Nurse, Strategic Lead Transformation and Sustainability and Capital Build Project Manager.
The Medical Director for NHSA&A is the Caldicott Guardian for the Hospice.
Board Governance is fully exercised through the following committees:
The Organisational Governance Committee: Is concerned with all matters relating to staffing, IT, regulation including health and safety and organisational risk. Any highlighted risks (other than clinical risks which are processed through the Clinical Governance Committee) are reviewed and reported to the Board through this committee in order to ensure that the Hospice continues to achieve its strategic goals and operational objectives;
The Clinical Governance Committee: Focuses on patient safety, quality of care, strategic development in clinical practice, education and training, and oversees the activities of the Care and Quality Management Group – the remit of this Group includes clinical audit, risk management, incident themes and actions. This group also oversees infection prevention and control, safer use of medicines, falls prevention, training and education, advanced practice and resuscitation. The Committee reports to the Board, providing assurance relating to agreed performance targets, patient safety and standards of care.
The Financial Governance Committee: scrutinises whether the Hospice has the resources required to achieve its aims and objectives. It is concerned with monitoring financial performance, reviewing financial controls and risk management systems and for ensuring that our strategies for investment and income generation are consistent with the hospice's strategic plans. The Committee meets with the auditors at the conclusion of the annual audit and considers any points raised by them. It reports to the Board to provide financial assurance.
The Appointments and Development Committee: This Committee oversees the recruitment and selection process for Company Directors; the retention and development of Company Directors; ensures that Company Directors receive the necessary induction, training and ongoing support needed to discharge their duties; and undertakes the recruitment and selection of Senior Management on behalf of the Board.
The Capital Project Governance Committee: recognising the importance of our major new Capital Build Project, the Board has established a time-limited Committee of the Board to co-ordinate and oversee this significant organisational project. The purpose of the Capital Project Governance Committee is to oversee the capital project making clear and reasoned recommendations to facilitate the Board in making informed decisions as the project advances: The Committee will oversee the project management and end delivery of the new and re-furbished hospice facilities. This committee will be disbanded following project completion which is anticipated at the end of the second quarter 2025 and all estate matters will then remit to the Organisational Governance committee.
Partnership working with our key stakeholder at NHS Ayrshire & Arran is a major hospice commitment and is facilitated through the active participation of representatives from those organisations both at Board level and at our governance committees. Regular meetings take place with Ayrshire Hospice CEO and NHSA&A CEO, Medical Director and Nurse Director to maintain strong partnership relationships.
Board Governance
The Board is committed to continuous improvement and aspires to achieve excellence in everything it does. To ensure that all Company Directors and the Board, as the body corporate, are (i) effective in the delivery of its aims and objectives; (ii) compliant with their duties, responsibilities and terms of reference; and (iii) are in a position to contribute to the Board’s continuous improvement, the Board undertakes, on an ongoing basis, development activities together with the Leadership team and ensures that following the completion of their annual skills audit and their annual appraisal, arrangements are put in place for individual (and groups of) Company Directors to access appropriate training.
To assess its progress, the Board measures itself against a number of criteria as set out below and in respect of which work is underway to rationalise the documentation to achieve more effective monitoring:
Board Performance Criteria: Definitions of an Outstanding Board (source Hospice UK: Board Development Programme);
The 5 S’s of Governance: five modes in which high performing Boards operate (source - J Unwin: London, Civil Society);
SCOT Analysis;
Scottish Governance Code for the Third Sector;
CVO Good Governance Checkup.
In accordance with the company's articles, a resolution proposing that William Duncan + Co (Audit) Ltd be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report, including the strategic report, was approved by the Board of Trustees.
The trustees, who are also the directors of The Ayrshire Hospice for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these accounts, 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 accounts; and
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of The Ayrshire Hospice (the ‘Ayrshire Hospice’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the 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:
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 Ayrshire Hospice 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.
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 Ayrshire Hospice’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.
In the light of the knowledge and understanding of the Ayrshire Hospice 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 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:
adequate and proper 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
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Ayrshire Hospice 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 Ayrshire Hospice’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.
We have been appointed as auditor under Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims;
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for potential management bias;
Reviewing minutes of meetings of those charged with governance; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Reviewing the level of and reasoning behind the company's procurement of legal and professional services.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 and to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees 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, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
William Duncan + Co (Audit) Ltd is eligible for appointment as auditor of the Ayrshire Hospice by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Designated funds
Investments
Raising funds
Designated funds
Investments
Raising funds
The Ayrshire Hospice is a private company limited by guarantee incorporated in Scotland. The registered office is 29 Miller Road, Ayr, Ayrshire, KA7 2AX.
The financial statements have been prepared in accordance with the Ayrshire Hospice's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), 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 Ayrshire Hospice is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Ayrshire Hospice. 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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the accounts, the trustees have a reasonable expectation that the Ayrshire Hospice have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees' , having identified no material uncertainties, continue to adopt the going concern basis of accounting in preparing the financial statements.
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. The purposes and uses of the designated funds are set out in the notes to the financial statements.
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.
Income is recognised when the Ayrshire Hospice 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 Ayrshire Hospice 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.
Grants, where entitlement is not conditional on the delivery of a specified performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Charitable activities income relates to grant funding from NHS Ayrshire & Arran. This is recognised on an accrual basis when income can be measured and it is probable that the charity will receive the income.
Income from government grants, whether 'capital' grants or 'revenue' grants, is recognisable when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.
Income is deferred only when the charity has to fulfil conditions before coming entitled to it - for example, where the donor has specified that the income is to be expended in future periods.
Income from fundraising activities is credited to the Statement of Financial Activities on an accruals basis.
Income from shops is recognised in the year in which the shop sale takes place.
Lottery income is based on the number of members eligible for each draw during the year and is accounted for under the accruals basis.
Income from investments is included when receivable and is allocated to unrestricted funds.
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and that amount of the obligation can be measured reliably. Expenditure is allocated between activities on a direct basis.
Expenditure other than that which has been capitalised is charged to the Statement of Financial Activities on an accruals basis, net of recoverable Value Added Tax.
Raising funds expenditure comprises the costs associated with attracting voluntary income and the costs of trading for fundraising purposes.
Charitable activities expenditure comprises all costs and expenses considered to relate direct to achieving and maintaining the objectives of The Ayrshire Hospice. Other items of expenditure are those costs incurred to allow the various departments, staff members and volunteers to maintain quality standards and comply with statutory obligations.
Support costs are those costs which, although not directly incurred in delivery of palliative care, are none the less critical to achieving the objectives of the Hospice and include costs in relation to human resource management, finance, facilities and estate management, administration, IT and governance departments.
Support costs are directly allocated to the cost centre to which they relate.
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:
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. Assets costing less than £5,000 are not capitalised.
In respect of assets in the course of construction, no depreciation is charge until the assets are brought into use.
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.
At each reporting end date, the Ayrshire Hospice reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises purchase costs only, donated goods have not been valued. The directors do not deem it practicable to value donated goods due to the significant amount of work and cost associated with this procedure.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
The Ayrshire Hospice 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 Ayrshire Hospice's balance sheet when the Ayrshire Hospice 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, 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, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
Financial liabilities are derecognised when the Ayrshire Hospice’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Ayrshire Hospice is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The charity participates in a defined benefit scheme for all eligible employees with continuing NHS Service.
Pensions costs are assessed in accordance with actuarial advice and based on the most recent actuarial valuation of the scheme. For other employees, who opt to do so, the charity provides a stakeholder money purchase pension scheme.
All costs are accounting for on the basis of charging the cost of providing pensions over the period during which the charity benefits from the employees services.
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.
Concessionary loan
The concessionary loan, which is interest free, is carried at original costs less any repayments made.
In the application of the Ayrshire Hospice’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 Trustees are satisfied that the accounting policies are appropriate and applied consistently. Key sources of estimation have been applied to the depreciation rates. Depreciation rates have been deemed to be appropriate for the class of asset.
Trusts and grants
NHS Funding
The Ayrshire Hospice is in receipt of financial aid in the form of grants from NHS Ayrshire & Arran which are contributed towards the running costs of the Hospice. The income is unrestricted. The Ayrshire Hospice is therefore dependent upon this source of income continuing in order that it may maintain the current standards of patient care within Ayrshire and Arran.
Lottery income
Dividends receivable
Other income
Fundraising, publicity and lottery activities
Lottery costs
Direct fundraising costs
Trading costs
Direct shop costs
Uniforms
Nursing Supplies
Transport
Maintenance
Professional Development
Professional and consultancy fees
Books and publications
Catering supplies
Housekeeping
Printing and stationery
Miscellaneous
Maintenance
IT costs
Uniforms
Utilities
Insurance
Advertising
Telephone, internet charges, postage & stationery
Bank charges
Transport
Professional development
Professional & consultancy fees
Books and publications
Miscellaneous
None of the trustees (or any persons connected with them) received any remuneration or benefits or remibursement of expenses, or had expenses paid on their behalf during the year.
The average monthly number of employees during the year was:
The remuneration of key management personnel, is as follows.
No advances, credits or guarantees have been given or received.
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
The investments are managed by various external fund managers and are valued at the closing open market valuation as at 31st March 2024.
The historical cost of the listed investments at 31 March 2024 is £9,615,985 (2023 - £9,135,699)
The charity received a concessionary bridging loan of £8 million from the Scottish Government in relation to the Capital project.
The loan, which is interest free, is to be repaid in quarterly instalments over the revised time scale of 40 years from the utilisation date (the date on which the loan was paid). Repayment will begin from the 30 April 2025 in equal quarterly instalments for the remainder of the term.
In respect of the loan, a standard security is held over 35-37 Racecourse Road, Ayr, KA7 2TG and the plot of ground to the south of 13 Ronaldshaw Park, Ayr, KA7 2TJ, included within land and buildings.
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £333,977 (2023 - £297,302)
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.
The Hospice has the following restricted funds:
Capital Build - to fund the Hospice capital build project;
Ladies Lunch Club (North) - funds to spend as directed by the Club;
Ladies Lunch Club (South) - funds to spend as directed by the Club;
Respite & Response Service- to fund the Hospice Respite & Response service;
Other Restricted funds - to fund services or equipment where a donor has specified a specific use to enhance the experience that patients and their families have with the Hospice.
During the year, £124,347 (2023 - £nil) has been transferred from the Restricted fund reserve. £110,182 has been transferred to the Designated fund reserve to fund the Capital Project and £14,164 has been transferred to the Unrestricted fund reserve to fund the depreciation of an asset purchased and held within unrestricted tangible assets.
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes;
The Hospice has the following Designated funds:
Capital Build – to fund the Hospice Capital Build Project.
Capital Project Contingency – an additional contingency to allow for unforeseen costs around the Capital Build Project.
Capital Build Depreciation Reserve – to be used to fund the depreciation charge of assets capitalised as part of the of the Capital Build Project.
Property Reserves – to fund depreciation charges on assets that have been paid for from restricted funds.
Kathleen Sherry Fund – to fund training and education support for Hospice staff.
Employee Benefit Fund – to fund and support employee benefits committed by the Directors.
Designated Fund 2024-25 Budget – to fund the 2024-25 budget as approved by the Directors to support specific projects.
Special Projects Reserve – a fund created by the Directors to be called upon at their discretion that is not intended to be used to fund day to day operations but available to fund specific projects.
The note details transfers of £110,182 (2023 - £nil). The purpose of this transfer is to ensure monies raised to fund the Capital Project are allocated to the Capital build depreciation reserve as the assets are capitalised.
These are unrestricted funds which are material to the Ayrshire Hospice's activities.
At the reporting end date the Ayrshire Hospice had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Amounts contracted for but not provided in the financial statements:
On the 29th August 2023, the Stage 4 Engineering and Construction contract for the Capital Build Project was formally signed and the committed cost of this is £15.4 million. As at 31 March 2024, £6.7 million of this contract has been capitalised as Assets Under Construction. The project is due for completion in the next financial year and the total project cost including fees and other associated costs is expected to be c.£21.5 million.