The trustees present their annual report and financial statements for the year ended 31 March 2025.

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).

Objectives and aims

As stated in the charity's Articles of Association, the Charity's objects are restricted specifically, [in each case] only for the public benefit to relieve the suffering of, and provide palliative and supportive care to persons suffering from a terminal illness or from any other physical or mental infirmity, disability or disease by the establishment and provision of domiciliary and supportive care, day care, residential care and in such other ways as the trustees shall from time to time think fit. The Articles of Association were refreshed in April 2024 and accepted by the Charity Commission. The revised Articles make allowance for the role of Associate Trustee to support the work of the Board and its subcommittees.

The charity provides clinical services in patients' homes, specifically palliative and end of life nursing care, bereavement, and family support, lymphoedema management, occupational and complementary therapies.

The Care Quality Commission is the independent regulator of health and adult social care in England and monitors all clinical activity provided by the charity.

This provision is free at the point of delivery and is achieved by providing trained clinicians who make the "staying at home" option a realistic one. We strive to enable patients to die in the place of their choosing which is predominantly in the home. Services are open to all palliative and end of life patients regardless of their age, address (within our geographical boundaries), end-stage illness or financial circumstances.

Our Vision: Hospice at Home will positively influence a future in which everyone within our community facing life-limiting illness, regardless of cause, receives the best possible palliative and end-of-life care and their families and carers receive the support they need.

Our Mission: To enhance quality of life for adults, their families and carers in our area, through skilled and compassionate care and support at home and in their community.

Our Values:

• Caring - We will always be kind and caring towards others. Our care and support will be holistic and will always put the patient first.

• Compassion - We will accept without judgement the thoughts, values, beliefs and choices of others, responding with empathy and the offer of support wherever possible.

• Trust - We will build trust and confidence by being approachable, dependable and responsive to individual need.

• Respect - We will be courteous and listen actively to what is said. We will maintain privacy and dignity at all times.

• Professional - We will be open, honest, reliable and fair, accepting responsibility for our actions and being accountable for them.

• Resourceful - We will use our resources and funds carefully to ensure we deliver high quality palliative and end of life care for patients whilst also supporting family members and carers.

Palliative Care Development

Palliative care is defined by the World Health Organisation as an approach that improves the quality of life of patients and their families who are facing problems associated with life-limiting illness, usually progressive. It prevents and relieves suffering through the early identification, correct assessment and treatment of pain and other problems whether physical, psychosocial and spiritual.

Palliative care also helps those receiving care, families and carers deal with emotional, spiritual or practical issues arising from the illness. People of all ages can benefit from palliative care at all stages of their illness.

End-of-Life (EoL) care

People who are likely to die within the next twelve months are "approaching the end of life". This also considers people whose death is likely to be imminent in the next few days or hours. The General Medical Council defines people approaching the end of life as being those with:

• advanced progressive, incurable conditions;

• general frailty and coexisting conditions that mean they are expected to die within twelve months;

• existing conditions if they are at risk of dying from a sudden crisis in their condition;

• life-threatening acute conditions caused by sudden catastrophic events.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

At Hospice at Home we have over two hundred volunteers who undertake a variety of roles: They support patients by providing companionship, emotional support, and practical assistance thereby improving the patient’s well-being; by providing respite care, listening, and emotional support, volunteers ease the burden on families. Volunteers undertake reception duties, fundraising, and working in our hospice shops. They play an important role in supporting events, and raising awareness about hospice services.

Volunteers have a positive impact in our hospice-and at the Annual General Meeting (AGM) in October 2024 we celebrated the work of all our volunteers. It was gratifying to hear their stories about why they became volunteers and the added value they bring. We are grateful to have such a committed, compassionate and caring team of volunteers.

At the AGM we also presented our plans for the future which will be reflected in the revised Strategic Plan 2025-2030.

Fundraising and Income Generation:

With the recent successful appointment of a Director of Income Generation a review and analysis of both fundraising and retail is planned for the year ahead creating a refreshed approach, exploring new opportunities and an increased focus on volunteering with the development of a Volunteer Strategy.

In the year ahead, Hospice at Home Carlisle and North Lakeland will undertake a major strategic upgrade of our digital infrastructure. This will ensure that we are well-positioned for future growth and help ensure our organisation’s sustainability into the future. Key developments include the migration to new fundraising and volunteering platforms to enhance relationship management and expand our supporter network; the adoption of a cloud-based accounting system for improved flexibility and oversight; and the implementation of a modern Human Resource Management System to better support our staff. We will also transition to a cloud-based server to enable more efficient remote access and organisational resilience, and we will launch a new website designed to better serve patients, families, and supporters. This comprehensive digital transformation will strengthen our operational foundations and enhance our ability to support the community that we serve. We are grateful to the Department of Health & Social Care and Hospice UK for making this vital investment possible.

Finance and Administrative Developments:

Hospice at Home is committed to staff development and in line with our commitment to nurturing emerging talent and addressing long-term staffing needs, we have welcomed at the start of the financial year two Business Administration Level 3 Apprentices into the organisation. Their integration has not only injected fresh energy into our operations but also contributed meaningfully to our support services while they gain practical experience and training. This initiative aligns with our broader workforce development plan and supports our charitable objectives of community engagement and skill-building.

A key focus this year has been on the professional development of our existing team. We are proud to report in our finance team the completion of AAT (The Association of Accounting Technicians) in level 3 for one team member and a progression on to Level 4 AAT for another team member. The investment in our people enhances our internal capacity and reinforces our aspiration of learning and continuous improvement. We anticipate this will result in greater service efficiency and personal growth for our team members. It has also allowed us to look at locating all financial services in-house thereby allowing us to have increased operational autonomy and cost efficiency.

Wider Workforce Developments:

We are now fine-tuning our recruitment approach to remain agile and inclusive, ensuring we attract those who truly share our values. We have aligned our Workforce Plans with Clinical, Income Generation, and Treasury objectives, whilst mapping out current skills and future development needs. Digitising our Human Resource systems will enhance efficiency and governance, and we will continue to expand wellbeing and feedback initiatives. We will begin laying the foundations for a Leadership Development Programme to develop our people into tomorrow’s leaders to grow an organisation fit for the future and to continue delivering outstanding quality end of life and palliative care to the local community.

Improved Health and Safety Compliance:

A specialist Health and Safety and Fire consultant has been engaged to support the organisation and has completed a full fire and Health & Safety audit. The focus has therefore shifted to implementing key recommendations, including policy updates, improved accident reporting processes, fire warden training, and documentation audits. New initiatives underway include the introduction of personal emergency evacuation plans, issuing high-vis vests and first aid lanyards to nominated parties, and streamlining documentation. Employee wellbeing is also being prioritised through an upgraded Employee Assistance Programme via Health Assured, which includes access to Mental Health First Aider training, reinforcing a stronger, more proactive approach to safety and support with the aim of reducing risk and loss through physical and reputational damage and ensuring the longevity of the organisation as it continues to grow and expand. Health and safety is a standard item agenda on all sub committees.

We are extremely grateful for all support received which comes in many forms and includes our 48 business partners. We aim to build on these partnerships in the coming year.

The charity is registered with the Fundraising regulator, the voluntary independent regulator of charitable fundraising in the UK. Hospice at Home follows their code of practice which ensures that fundraising is respectful, open, honest and accountable to the public. The charity will continue to adhere to all regulations governing fundraising and follow any best practice guidelines that are issued to ensure positive relations are maintained with the generous local people who support us.

The fundraising department always aims for the highest standards in fundraising and organise an annual plan which aims to meet the expenditure requirements within the financial plan.

The accounts show net deficit for the year of £143,046 before taking into account the gain on investment. After accounting for the gain on investment in the year, the net movement in funds was a deficit of £131,615. The results for the previous year showed a surplus of £242,806 and after the gain on the investment the surplus was £345,615.

Income levels decreased from £2,331,630 to £1,951,784 in the current year and this is mainly due to the decreased income in legacies. The legacy income received in the year amounted to £460,261 (2024: £860,063). Expenditure levels were higher in the year ended 31 March 2025 than the previous year with costs being closely monitored. Without this level of legacy income the charity would have generated a greater loss for the year.

As at 31 March 2025, the charity held total reserves of £3,203,194 which included unrestricted funds of £3,170,544 and restricted funds of £32,650.

The unrestricted fund includes fixed assets of £13,420 leaving free reserves of £3,157,124. 

The Trustees have determined free reserves should be at least equivalent to the greater of 6 months budgeted costs or the potential close down costs. This has been calculated to be almost £1,048,000.  An equivalent sum should be kept in cash reserves separate from other funds and reviewed annually once a new budget has been approved by the Trustees at the accounting date.  Reserves exceeded this criteria at the year end however there is expenditure budgeted for the next year as part of the development strategy of the charity which will reduce the reserves. Funds required for the day to day running costs, based on the annual budget, should be kept in the company's bank current account and any instant access account with an institution governed by the financial services compensation scheme (F.S.C.S).

Any other funds not required for the day to day running costs are to be invested in individual UK based institutions covered by the F.S.C.S. or into funds managed on an advisory basis by Arc Eden.  The criteria we use to invest in are medium risk investments. There was a gain on the investments in the year ended 31 March 2025 of £11,431 (2024: gain of £102,809).  Transfers out of managed funds can be made by the Finance and Income Generation Committee but further investments into managed funds are by recommendation of the Finance and Income Generation Committee to the Board.

The Charity received financial support from the Clinical Commissioning Group (CCG) devolved from the NHS in the year. This contribution to costs gives confidence against a background of the very welcome voluntary support. The charity is profoundly grateful to all in the community for the excellent support received.

Another form of funding are legacies which the charity receives from supporters, although this source of income is not guaranteed.

The Trustees have assessed the major risks to which the Company is exposed, including in particular those related to the operations and finance of the Company. This is done through a Corporate Risk Register on a bi-monthly basis. Trustees are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Objectives and policies

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.

Cash flow risk

The charity’s activities expose it primarily to the financial risks of changes in interest rates.

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term cash deposits.

• Focusing on the stability of the workforce. Recruitment to key roles is largely complete therefore our focus is shifting toward deepening staff engagement, improving retention, and fostering a workplace where everyone can thrive.

• Developing existing volunteers and plans to attract new volunteers is one of our commitments next year as set out in a new Strategy for Volunteers.

• Encouraging feedback and service improvement will be explored through our Lived Experience Forum, website feedback, HealthWatch feedback and compliments and complaints received.

• Expanding retail outlets with an enhanced team approach.

• Increasing referrals into the Day and Night Nursing service and continuing to promote our services with system partners.

• Improving access to our services.

• Our complementary therapy, occupational therapy and lymphoedema services all have new members in the team, which will strengthen the services and offer the development of new opportunities.

• Increasing our respite provision for patients with a neurological condition with the funds awarded from Hospice UK for a pilot.

• Having a clear Digital Transformation programme across the organisation for customer relationship management, finance, and volunteers.

• We are working with partners to standardise our data collection in clinical services

• We are working with partners to explore improved collaboration and future opportunities, including the identification and management of future risks.

• We are developing business plans in-line with strategic objectives with key performance indicators that will provide assurance.

• We will complete a number of business cases that will utilise reserves and whilst adhering to the 5-Year Strategic Plan.

• We are aware of the financial decisions that are made outside our control and that we must address given the fact that they have adversely impacted our financial position. That said, careful, prudent and considerate management has, and is, ensuring that the impact is curtailed, as far as possible, while retaining the scope and quality of our charitable services.

• Currently our reserves remain sound and stable; we have sufficient reserves to meet our statutory requirements and to fund identified essential improvement and development projects.

• In line with Charity Commission guidance and charity company best practice, we have subjected the management of our reserves to a competitive process to ensure they are working effectively. This has resulted in appointing a new finance consultant, who has a wealth of knowledge, expertise and experience in the charity sector investment. Although it is early days, initial indications are good.

• At the same time we have reviewed and revised our Finance and Income Generation and Investment policies to ensure that our finances are managed effectively, efficiently and economically while our investments are ethical and not exposed to unnecessary risks.

• We have embarked on our plan to move from annual budgeting to making a three-year rolling forecast offering a longer horizon over which to make financial decisions.

• Salary costs are our biggest expenditure by far. In setting the annual salary increase at 1% plus a quarterly pro-rata payment of £500, the Board of Trustee Directors are keenly aware of the pay rises in the sector, especially the NHS, and the need to strike a balance that Hospice at Home Carlisle and North Lakeland can afford.

• The annual salary increase of 1% with a pro-rata £500 payment paid quarterly will add £45,155 to salary costs in the upcoming fiscal year.

• The Minimum Wage: There are only 4 members of staff that require more than the 1% pay rise for all staff to meet the new minimum wage so the impact at £1,158.56 is minimal.

• National Insurance: After taking into account the additional Employment Allowance of £10,500, the full year cost of the National Insurance changes is £33,019.

• In addition, it is already evident that the essential utilities, products and services that we purchase are costing significantly more. This is likely to be a recurring trend.

• Although, currently we are solvent, unavoidable mounting cost pressures will continue to consume resources. To mitigate this our focus will be on successfully and sustainably generating more income in all its forms, but especially through retail and legacies.

Nature of governing document

The Company is constituted under a Memorandum of Association dated 1 April 2003 and is a registered charity, number 1095708. The principle object of the Company is to provide palliative and supportive care to persons suffering from any terminal illness in their own home.

The Directors of the Company are also Charity Trustees for the purpose of Charity Law and in the Company's Articles of Association are described as Trustees.

The trustees who served during the year were:

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. The maximum number of Trustees is 15 and the minimum is 3. At each annual general meeting one third of the Trustees for the time being or, if their number is not 3 or a multiple of 3, then the number nearest one third, shall retire from office. The Trustees to retire are those who have been longest in office since their last election.

A review of the Trustees' skills is carried out regularly and where a skill is not represented on the Board potential appointees are either approached to offer themselves for election or advertisements are placed in local newspapers and on the Charity website.

Decisions regarding the management of the Charity are taken at Board meetings which are held every 2 months. There are 4 sub-groups which report to the Board and these are Clinical Assurance, Workforce, Information Governance and Finance and Income Generation.

The Company Secretary and Chief Executive Officer attend Board meetings but neither has a vote. The Chief Executive Officer takes overall responsibility for leadership of the Charity.

In October 2025 three trustees will have completed nine years with the charity and will step down from their role in accordance with the Articles of Association (2024).

We said goodbye and thank you to Susan Black who retired in March 2025 after three years as a trustee.

James Ferris Porter was appointed as trustee on 1st October 2024 and approved by the AGM in October 2024.

Patrons and Ambassadors

Hospice at Home is pleased to welcome a new Patron: Sarah Dunning OBE DL. Sarah is chair of Westmorland Limited – her second-generation family business which operates motorway services in Cumbria, Scotland and Gloucestershire, as well as Rheged and Junction 38 Truckstop. The business originally grew out of their hill farm in Cumbria and the business seeks to celebrate its local communities by working with local farmers and food producers. Sarah also sits on the Board of family business Timpson, Raby Estates and is a Trustee of Francis Scott Trust.

Jane Hassell-McCosh LD continues to actively support Hospice at Home; she hosted the Marmalade Festival at Dalemain in April which was a great success and this year celebrated its 20th anniversary. Jane was presented with the Order of the Rising Sun, Silver Rays by the government of Japan for welcoming Japanese visitors and their marmalade to Cumbria and for her support of a similar festival in Yawatahama City.

Juliet Westoll MBE, LD continues her valuable work as patron. Over many years Jane and Juliet have raised our profile nationally and internationally and raised a great deal of money through their fund-raising activities. We are extremely grateful for their loyalty and commitment and look forward to continue working together.

We welcomed Ian Milburn and Nicola Irving as Charity Ambassadors. Their involvement will help us extend our reach to local businesses and individuals in our locality, encouraging them to get involved in helping us make a positive difference to our patients.

We said goodbye and thank you to two patrons who retired in March 2025: Claire Hensman CVO who has been a Patron of Hospice at Home for 17 years and with us for several years before that. Belinda Hill produced a wonderful ‘At Home in Cumbria’ cookery book that includes over 100 recipes, many which have been created using products from local food producers and growers. All proceeds from the book go to Hospice at Home. We wish them both well.

New Trustees attend a briefing session with the Chair and other officers which covers the aims of the Charity, Trustees' duties, the Charity constitution and financial position. It is enhanced by an induction manual produced by Hospice UK. Trustees attend training events as required and support can be accessed via Cumbria Council for Voluntary Services.

The policy for care staff is based on the remuneration of similar employees in the NHS using pre 18-19 NHS pay scales and inflated with costs of living increases. The policy for fundraising, office and administration staff is based on National Joint Council pay scales which are local government pay scales used in the voluntary sector.

The trustees, who are also the directors of Hospice at Home Carlisle and North Lakeland 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.

In accordance with the company's articles, a resolution proposing that Saint & Co. be reappointed as auditor of the company will be put at a General Meeting.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

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 was approved by the Board of Trustees.

Opinion

We have audited the financial statements of Hospice at Home Carlisle and North Lakeland (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the statement of financial position, 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:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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.

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 prepared for the purposes of company law, is consistent with the financial statements; and

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

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 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; or

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

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.

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.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the charity through discussions with trustees and other management;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• to address the risk of fraud through management bias and override of controls, we:

  • performed analytical procedures to identify any unusual or unexpected relationships;

  • tested journal entries to identify unusual transactions;

  • assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and

  • investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with relevant regulators such as Charity Commission and the charity's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Fundraising trading

Investment income

Raising funds

Fundraising

Trading

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

Fundraising trading

Investment income

Raising funds

Fundraising

Trading

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Hospice at Home Carlisle and North Lakeland is a private company limited by guarantee incorporated in England and Wales. The registered office is Valley Court, Barras Lane Estate, Dalston, Carlisle, CA5 7NY.

The charity is limited by guarantee and consequently does not have share capital. Each of the members are liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The financial statements have been prepared in accordance with the charity's governing document, 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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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.

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

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.

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.

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Income from fundraising events undertaken in the year is recognised when there is evidence of

entitlement, receipt is probable and its amount can be measured reliably

Investment income from interest on deposit funds held is included when receivable and the amount can be measured reliably by the charity which is normally upon notification of the interest paid or payable by the bank.

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.

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Individual fixed assets costing £1,000 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated 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.

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 charity reviews the carrying amounts of its tangible 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 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.

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 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, 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 charity’s contractual obligations expire or are discharged or cancelled.

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

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 charity 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.

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.

Fundraising trading

Fundraising

Trading

During the year ended 31 March 2025, no trustees (or any persons connected with them) received any remuneration or benefits from the charity.

During the year £nil (2024: £nil) was paid to trustees for for reimbursement of travel costs.

The average monthly number of employees during the year was:

Termination payments totalling £7,573 (2024: £15,987) were made in the reporting period. This included £7,572.50 Ex-Gratia payment (2024: £6,058) and there is no payment related to payment in lieu of notice and holiday entitlement (2024: £9,929).

The remuneration of key management personnel was as follows:

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.

Deferred income is included in the financial statements as follows:

Deferred income relates to NHS grant income for 2025/2026.

The charity operates a defined contribution pension scheme for all qualifying employees as well as contributing to the NHS pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund.

Contributions amounting to £7,438 (2024: £7,185) were payable to the scheme at balance sheet date and are included within other creditors.

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 unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Operating lease payments represent rentals payable by the charity for its properties, equipment and vehicles.

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:

During the year the charity entered into the following transactions with related parties:

Trustees' liability amounting to £2,169 and Entity legal liability (including professional indemnity) insurance amounting to £1,205 (£2024: Trustees' indemnity insurance amounting to £500) was paid by the charity during the year.

The charity had no material debt during the year.