Martin House (Limited by Guarantee)
Trustees’ report and financial statements Company registered number 2016332 Charity registration number 517919 30 April 2014
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Contents
Trustees’ report 1 Statement of trustees’ responsibilities 17 Independent auditor's report to the members of Martin House (Limited by Guarantee) 18 Statement of financial activities 19 Balance sheet 20 Cash flow statement 21 Notes 22
Charity registration number 517919 / Company registration number 2016332
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
TRUSTEES’ REPORT
The Trustees, who act as directors for the purposes of company law, present their annual report and the audited financial statements for the year ended 30th April 2014.
Reference and Administrative information Charity name: Martin House Charity registration number: 517919 Company registration number: 2016332 Registered office and operational address: Grove Road, Boston Spa, Wetherby, LS23 6TX
Trustees and Trustees’ Interests The Trustees, who are also directors, are the members of the charitable company. The Trustees who served during the year and currently are as follows:
David B Johnson BA Hons (Chair until 31 Former Chief Executive NHS (Trustee until 27 July 2013) October 2013) Will Lifford BSc., FCA* (Chair from 1 Chartered Accountant September 2013) Professor Cliff C Bailey MB, FRCP, Retired Consultant Paediatric Oncologist (retired 23 FRCPCH** (Vice Chair until 23 July 2013) July 2013) Dr Fiona Hicks BMedSci BM BS FRCP (Vice Consultant in Palliative Medicine Chair from 26 November 2013) Dr John H Livingston MB, CHB, FRCP, Consultant Paediatric Neurologist FRCPCH** Derek Chapman CA* Chartered Accountant (retired 10 June 2014) Dr Susan V Picton BM, BS, FRCP, FRCPCH Consultant Paediatric Oncologist Stephen A Plews Managing Director, Ackrill Group Ltd. Dr Robert Antony Smith MD FRCPCH Consultant Paediatrician David Swarbrick BA*/** Retired solicitor and bereaved parent Victor H Watson CBE, DL, LLD, MA* Former Chairman of Waddington Plc Jennifer Wilkinson Bereaved parent Robin W J Wood CBE* Former Administrator of Martin House (retired 23 July 2013) Jenny Slee (Cromack) LLB ** Partner, Addleshaw Goddard LLP Zoe Donaldson** Family law solicitor Michael Millington BSc Hons, MBA* Vice President, Croda Europe Ltd Timothy J Halstead LLB* Partner Shulmans LLP * Member of the finance committee ** Member of the research committee
Patron: Investment Managers: The Most Revd. & Rt. Hon. Dr. John Sentamu, Brewin Dolphin Lord Archbishop of York 34 Lisbon Street, Leeds LS1 4LX
Charity registration number 517919 / Company registration number 2016332 1
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Auditor: Bankers: Baker Tilly UK Audit LLP Barclays Bank Plc 2 Whitehall Quay, Leeds LS1 4HG 25 James Street, Harrogate HG1 1QX
Principal Officers: Chief Executive: Angela Monaghan (from 01.09.13) Director of Clinical Services: Sheila O’Leary, RGN, RSCN Company Secretary: Aase Somerscale (until 24.10.13) and Angela Monaghan (from 25.10.13) Director of Business and Support Services: Aase Somerscale (until 30.9.13)
OBJECTIVES AND ACTIVITIES
Objectives The mission of Martin House is to enable children and young people with a life-limiting condition, and their families, to fulfil their potential through the provision of specialist services and high quality end of life care. All our services are delivered free of charge.
Our vision is that every child and young person in Yorkshire and the Humber has access to palliative care when and where they need it.
We have a set of core values, which guide everything we do:
• We are family-led in the design, development and delivery of our services. • We are flexible and responsive to the individual needs of every child, young person and their family. • We listen to, respect and value each individual, without judgment. • We are committed to high professional standards and continual improvement in all we do. • We believe in partnership and collaborative working. • We strive to treat everyone fairly and equally. • We are passionate about our mission and vision.
Our strategic aims during this period were to:
1. provide a service that is free of charge and meets the needs of any child or young person with a life limiting illness within our catchment area, who meets our criteria and wishes to use our services; and to support the family of any child or young person accepted for care by Martin House; 2. work collaboratively and/or in partnership with other professionals and organisations, statutory and voluntary, in the field of palliative care for children and young people; 3. maintain an effective financial strategy; 4. maintain high standards of care and governance; 5. develop our staff and infrastructure; and 6. play a leading role in development, promotion, delivery and research within children’s palliative care.
Charity registration number 517919 / Company registration number 2016332 2
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
We set out more detailed objectives in our Strategic Plan 2013-16. Our achievements and performance against these objectives are set out in the Strategic Report, below.
The Charity Commission’s general guidance on public benefit is taken into consideration in all our reviews and plans.
Activities To achieve our objectives, we deliver high-quality, specialist palliative care services for children and young people with life-limiting conditions, and their families, from diagnosis to death and beyond. These include: • planned or respite care • symptom management • emergency care • end of life care • community care (hospice at home) • bereavement care • psychological care and emotional support • a programme of clinical research and education
Most of these services are delivered from a purpose-built hospice set in six acres of beautiful grounds in Boston Spa, near Wetherby in West Yorkshire. The hospice, the second children’s hospice in the UK at the time, was opened in 1987. Since then, it has developed continuously in order to meet the changing needs and expectations of the children, young people and their families who use our services.
The hospice now has 9 beds in the House, which caters for the younger children, and 6 beds in Whitby Lodge, which caters for teenagers (from age 13) and young adults up to age 30 (and occasionally beyond). This was the first purpose-built teenage unit in the UK (possibly the world) when it was built in 2002. In addition, there are 9 family bedrooms where parents and siblings can stay and 3 ‘little rooms’ (mortuary rooms) where children and young people can stay after death until their funeral.
Other facilities include a chapel, hydrotherapy hot tub, sensory room, teenagers’ recreation centre (the Den), recording studio, art room, music room, chapel, education/seminar room and outdoor play areas.
Children and young people can be referred to Martin House at any point from diagnosis, between the ages of 0-19, if they have a life-limiting condition and live in east, north or west Yorkshire and the Humber. Children’s palliative care is different from adults’ in that it encompasses the whole family and continues throughout the life of the child or young person, and beyond for their family.
Charity registration number 517919 / Company registration number 2016332 3
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
STRATEGIC REPORT Achievements and Performance
Palliative Care During 2013/14, we were actively caring, on average, for 340 children and young people and their families. In addition, we provided bereavement support, on average, to an additional 90 families.
During the period, we: • received 86 new referrals, of which 67 were accepted, 16 were not and 3 were still pending; • delivered 3,105 nights’ of care for life-limited children and young people in the hospice (1,672 in Martin House and 1,433 in Whitby Lodge); • provided 1,845 overnight stays for parents, 1,099 overnight stays for siblings and 250 overnight stays for others of life-limited children and young people; • delivered 519 episodes (totaling 2,297 hours) of care at home and bereavement support; and • delivered 78 episodes (totaling 365 hours) of care in other settings.
Sadly, 46 of the children and young people we were caring for died during 2013/14. Of these, 14 died at Martin House, 10 died at home, 17 died in hospital, 1 died on route to hospital and 4 died in other palliative care settings.
We take referrals from east, north and west Yorkshire and the Humber. Diagram 1 shows where the children and young people we are caring for live, by local authority district:
By local authority district
Bradford Calderdale East Riding Hull Kirklees Leeds North Yorkshire Wakefield Out of area
0 20 40 60 80 100
Charity registration number 517919 / Company registration number 2016332 4
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Diagram 2 shows the breakdown, by age, of the children and young people we care for and diagram 3 shows the breakdown by diagnostic group:
By age
Neonate
Aged 28 days - 1
Aged 1 to 5
Aged 5 to 13
Aged 13 to 16
Over 16
0 20 40 60 80 100 120 140
By diagnostic group
Central Nervous system - Other Neuromuscular disease - muscular dystrophy Metabolic diseases Other Central Nervous System - Progressive Cardiovascular disease Neuromuscular disease - other Neuromuscular disease - spinal muscular atrophy Chromosonal abnormalities Oncology Metabolic diseases - mucoploysaccaride diseases Oncololgy - central nervous system 0 10 20 30 40 50 60 70 80 90
Of our 15 beds, 12 are used for planned stays and 3 are retained for emergency stays (2 in the House and 1 in Whitby Lodge). During 2013/14, we maintained an average bed occupancy level of 77% against planned capacity and 60% against total capacity. This is in line with average occupancy across all children's hospices in the UK1 [79% and 62% respectively] and just below our target bed occupancy of 80% for planned capacity.
Our care team includes a number of highly skilled and specialist staff, which means we are able to care for children and young people with complex needs, requiring high levels of specialist medical and nursing support. We do this whilst still maintaining a homely, comfortable atmosphere where children, young people and their families can relax, engage in a wide range of activities (or not, as they choose) and have fun.
1 Children’s Hospice Financial Benchmarking Survey Report 2013 - Together for Short Lives, March 2014
Charity registration number 517919 / Company registration number 2016332 5
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Our Consultant in Paediatric Palliative Care, Dr Mike Miller, has continued to support children, young people and their families throughout Yorkshire, which extends beyond the children who use Martin House, and provide support and advice to professionals who are involved with children and young people who have palliative and complex care needs. Dr Miller has announced his intention to retire in March 2015 and work is now well progressed to appoint his replacement.
Our Consultant Clinical Psychologist, Dr Jan Aldridge, provides psychological care to children and their families and support, training and supervision to the care team in the development of psychological and emotional aspects of their work and specialist advice to professionals in the wider region. In addition she is the research lead at Martin House. She is a member of the national research committee hosted jointly by Together for Short Lives and the Association of Paediatric Palliative Medicine and also the elected representative for Western Europe on the ICPCN`s Scientific committee.
Both these post holders are regularly invited to contribute to teaching and training in palliative care in the UK and overseas and were invited contributors to the main textbook in the specialty, the Oxford Textbook of Children`s Palliative Care, which was awarded the British Medical Association prize in 2013 for best textbook.
In addition to delivering 1:1 bereavement support, we continued to run a range of groups offering support to families living with a child or young person with a life-limiting condition and after a child has died. These include a parents’ group, a grandparents’ group, an Asian mothers’ group and a number of siblings’ groups, both for those living with a life-limited brother or sister, and following bereavement. Other activities which offered emotional support and comfort included the Light up a Life Service and our annual Remembrance Day, both of which were well supported.
We have also undertaken some special, one-off projects during the year as part of our support and care for families. This year, these have included an initiative with Northern Ballet, supported by The Prince’s Foundation for Children and the Arts, known as the START Hospices Programme. This aims to give children and families the chance to have fun together, away from the demands of daily life, and enjoy a quality arts activity to which they may not usually have access. The wonderful sessions last autumn, led by Northern Ballet’s Education Team, gave families the chance to explore ballet and photography. They also enabled families to create some wonderful memories with their children.
In response to growing awareness of the unmet needs of young adults with life-limiting conditions, during transition from children’s to adults’ services and beyond, we have initiated a regional project to explore what these needs are, and how we might work in a more integrated and collaborative way to respond to them.
We had an unannounced inspection by the Care Quality Commission (CQC) in January which reported that we met all standards inspected.
Charity registration number 517919 / Company registration number 2016332 6
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Education As part of our commitment to developing the specialty of paediatric palliative medicine, we have continued to support a trainee paediatrician based at Martin House studying for the Diploma in Paediatric Palliative Medicine. We also accommodate medical and nursing student placements. Our Consultant in Paediatric Palliative Medicine is a tutor at Leeds University and our Consultant Clinical Psychologist has an Honorary Senior Lecturer post at the University of Leeds.
We have an extensive in-house programme of practice education, led by our education team, and provide a broad development offer for all staff through study days, team development and training programmes. Staff also further their development through attendance at conferences, networks and other internal and external development opportunities.
We have supported the exchange of good practice internationally through invited lecturing and training visits to Belarus, India and Singapore and by receiving international visitors to Martin House from Japan, Rwanda, India, Belarus and Greece.
Research Our long-standing programme of research has continued during this period. We agreed to fund a research assistant to work with Dr Lorna Fraser at the University of York, who is doing innovative work in the field of paediatric palliative care research.
In addition, our two-year regional study, into the range of services available in Yorkshire to families in which there is a child or young person with a life-limiting condition and the barriers and facilitators for providing appropriate palliative care and support, reported in April 2014. The study identified 465 services, highlighted 16 key messages and concluded with 4 recommendations for action by both providers and commissioners of children’s palliative care. Martin House is now, with others, considering the implications of these findings for both our own future strategy and services across the region.
The Department of Health funded project on staff needs and development has been disseminated nationally and aspects incorporated into practice and the implications kept under review at Martin House.
Dr Mike Miller and Dr Jan Aldridge, both members of staff at Martin House, were joint authors of a published study into the prevalence of life-limiting and life-threatening conditions in young adults in England 2000-20102. Aspects of this work have been published in the prestigious journal of Pediatrics and also in Palliative Medicine, where it was cited as Editor`s choice.
2 Prevalence of Life-Limiting and Life-Threatening Conditions in Young Adults in England 2000-2010: Lorna K Fraser, Michael Miller, Jan Aldridge, Patricia A McKinney & Roger C Parslow - Together for Short Lives, September 2013
Charity registration number 517919 / Company registration number 2016332 7
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Facilities and IT During the year, we have undertaken a number of developments to our facilities. The most significant of these was the demolition and reconstruction of the Whitby Lodge social centre - the ‘Den’. Since the Den was first created in 2002, many of the young people’s wheelchairs have become bigger and heavier and the space was no longer adequate or fit for purpose. The new Den, which is due to open officially in August 2014, is larger, has a wider access ramp, and will contain a cinema, high-tech dance floor, electronic games and equipment, all of which can be controlled by the young people.
In addition, we have refurbished and upgraded 3 of our family rooms, adding ensuite bathrooms and a kitchenette. This means that all our family rooms are now ensuite or have access to a private bathroom.
We have also progressed plans to install a new entrance, stair and lift access to the fundraising offices. As well as providing disabled access to the upper floor (including the family rooms) for the first time, this development will allow us to provide a separate entrance to the family rooms, thus affording them more privacy and dignity. Work started on site in June 2014.
We have made a number of improvements to our IT infrastructure. We have installed a new document management system, upgraded printers and scanners throughout the building (generating significant financial savings), commissioned a new Customer Relationship Management (CRM) database, and upgraded our servers. The implementation of some of these projects will continue over the next couple of years.
Fundraising Our small but energetic and highly effective fundraising team has, again, been very successful in generating the resources needed to continue to deliver our services. They raised £3,462,000 in voluntary income (£2,713,000 net income) through a wide range of events and activities, which are also highly successful in raising the profile of Martin House throughout the region. They have continued to innovate and develop new ideas, in addition to maintaining existing income streams.
New events this year included Strictly Get Dancing, which was very successful in raising both support and funds; the Plusnet Yorkshire Marathon; and the successful Elf World Record attempt - we now hold the Guinness World Record for the largest gathering of Santa’s Elves. Repeat events included a wide range of running events (attracting over 4,000 runners in total for Martin House), Dragon Boat Racing, Centre Stage battle of the bands, the Glitter Ball and Pink Tie and Tiara Ball.
Our community fundraisers continued to support 12 Friends’ Groups, which operate throughout the region, plus a huge number of other community initiatives; and our corporate fundraisers have continued to successfully recruit companies’ support and funding. However, income from both of these areas is down on the previous year, reflecting a sometimes difficult and competitive fundraising environment in tough economic conditions. The lottery has maintained a consistent membership and met financial targets.
Charity registration number 517919 / Company registration number 2016332 8
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Retail Our retail operations have grown significantly this year, with new shops opening in Ilkley and Shipley, taking our total to 8. Our shops brought in £213,000 (net of costs) in this period, a 20.3% increase on the previous year.
Communications Our media and communications work has grown and developed during this period, with the support of a dedicated, part-time post. We were successful in beating off stiff competition to become the charity of the year for BBC Radio York, which then led to the launch, in September, of the ‘Good Night’s Sleep’ appeal to raise funds for Martin House from throughout North Yorkshire. This has been fantastically successful in raising both funds and the profile of Martin House in this area and we have now increased the appeal target from £120,000 to £200,000 by September 2014.
We have also developed our social media work considerably and now have over 7,600 Likes for our Facebook page and over 5,000 followers on Twitter.
Our research on the experiences of siblings was selected to be featured as part of Children`s Hospice week in 2013 by Together for Short Lives and received extensive radio coverage for Martin House.
Other elements of our communications work has included the publication of two newsletters; a suite of new information leaflets aimed at families and professionals; our annual Open Day in October, which this year attracted over 650 visitors; and the development of a new website, which will go live in June 2014.
External Affairs We have worked closely with our statutory commissioners (primarily Clinical Commissioning Groups and NHS England) during this year to understand and respond to the impact of NHS reforms, the potential introduction of a palliative care tariff and impending new legislation (especially the Children and Families Act and the Care Act) on Martin House.
We have supported, and had the support of, two national networks of which we are members: Together for Short Lives and Help the Hospices.
We have worked in collaboration with other children’s palliative care professionals, through the Yorkshire and Humber Paediatric Palliative Care Network and the Association for Paediatric Palliative Medicine (APPM), to improve services for families and further the development of paediatric palliative care.
Charity registration number 517919 / Company registration number 2016332 9
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Organisational Development In January 2014, we embarked on a strategic planning process with the aim of reviewing and revising our 3-year strategic plan by the autumn of 2014. This process will engage and consult widely with trustees, staff, volunteers, families, young people, commissioners and partners. It will also take into consideration the findings emerging from the Help the Hospices Commission into the future of hospice care, which reported in October 2013, and the findings of our own evaluation study (see above).
Financial Review
Principal sources of income Our principal sources of income are statutory funding, investment income, and, by far the largest source, fundraising from the public.
We are reliant upon fundraising from the public to fund the large majority of our annual running costs. This funding comes to Martin House as donations, legacies, and profits made in our shops. We continue to be overwhelmed by the generosity of the public in supporting us in our charitable objectives.
Grant funding from the NHS Clinical Commissioning Groups and NHS England, towards the costs of our service provision, covered around 26% of our expenditure on charitable activities.
In addition, we have been fortunate to receive a number of one-off grants from statutory sources during the year towards building improvements and capital and IT expenditure.
Result for the year The charity has generated a significant surplus of income over expenditure in 2013/14, despite beginning the financial year with a deficit budget. The key factors contributing to this turn- around in results have been: restricted funding of £280,815 for the Den development and £77,765 for IT improvements, achieving legacy income of £886,019 against a budget of £750,000, opening 2 new shops, in Shipley & Ilkley, during the year, and continuing to manage our expenditure well.
Financial position The Balance Sheet shows total funds at 30 April 2014 of £19,816,910. Unrestricted funds are represented by tangible fixed assets of £3,842,214, investments of £14,046,398, and net current assets of £1,831,656. The charity is in a strong financial position.
Reserves policy We remain conscious of the fact that all our sources of income are unpredictable. The Trustees therefore consider that a minimum of four months operating costs (£1.7m) should be held in free reserves, in cash, to enable steady cash flow management.
Charity registration number 517919 / Company registration number 2016332 10
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Over the years, the Trustees have been able to invest surplus free reserves in an Investment Fund, to provide long term commitment and support to the families dependent on Martin House. The annual income generated by the Investment Fund makes a valuable contribution to our annual running costs. It is the Trustees’ intention to strengthen the Investment Fund so far as any surpluses arise, increasing the total return to the charity and reducing the burden on fundraising.
Investments The Trustees’ investment policy is to achieve the best total return available from capital and income on a medium to long term basis, while adopting a medium level of risk. The benchmark used to measure the results of the portfolio is a WMA Balanced Index. For the year ended 30 April 2014, the investment portfolio gave a total return of 7.58%, which compared to the WMA Balanced Index return of 5.8%. No specific restrictions are placed on the investment managers, Brewin Dolphin, who manage the portfolio on a discretionary basis. The trustees plan to review the Statement of Investment Policy in the coming year.
Plans for Future Periods
Strategic Planning During the first part of the 2014-15 financial period, we will be developing our next Strategic Plan for 2015-18. This will include a review of our mission, vision and values and we will engage staff, volunteers, families, young service users, partners and commissioners in the strategic planning process. The Strategic Plan will identify our revised strategic objectives for each service area and for the organisation as a whole.
Palliative Care We remain committed to providing high quality care and support to children and young people with a life-limiting condition, and their families, from diagnosis until death, and beyond. We will ensure that children and young people have all their physical needs met in a safe and competent way that also ensures dignity and respect; that symptoms are assessed and appropriately treated, with a focus on the quality of life; that they understand the care they are receiving and are able to question the rationale behind it; and that all physical care meets the standards set down by the CQC.
In addition to maintaining the full range of palliative care services already in place, we will: • recruit a new Consultant in Paediatric Palliative Medicine, to replace the retiring Dr. Mike Miller; • review our clinical psychology service and increase the profile and delivery of psychological care and emotional support offered by Martin House; • review our bereavement service; • review and possibly extend our community services; • improve our data collection and analysis and develop appropriate outcome measures, in partnership with other children’s hospices and Together for Short Lives; and • undertake a review of the level and configuration of specialist paediatric palliative care provision across the region, and act on its recommendations.
Charity registration number 517919 / Company registration number 2016332 11
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
We will consider how best to respond to the recommendations contained in the Martin House regional evaluation study, which reported in April 2014, and continue to develop innovative responses to paediatric palliative care challenges.
Education and Development We aim to be a leader in the delivery of paediatric palliative care education and training. We will continue to support a Paediatric Palliative Medicine trainee at the hospice, along with medical and nursing students. Our education programme will continue to ensure that we have a highly competent, interdisciplinary care team with the appropriate skills to deliver high standards of care.
Facilities and IT In addition to ensuring all existing facilities are maintained to a high standard, we will: • open the new ‘Den’ area in Whitby Lodge; • develop and consult on plans for the redevelopment of our outdoor play areas; • build a new entrance, stair and lift access to the first floor of Martin House; • develop plans for the refurbishment of both the House and Whitby Lodge; • investigate opening a new warehouse facility, which would allow us to expand our retail operations and accept furniture donations; • upgrade our fire alarm systems; • roll out LED energy-efficient lighting throughout Martin House; • appoint an IT Training and Support Assistant; • roll out the DMS and CRM database; • review our clinical records database; • upgrade Wi-Fi throughout the building; and • develop mobile working solutions for all staff.
Financial Strategy We will continue to ensure a diverse range of income sources, to spread the financial risk, and will seek to maintain statutory funding at or above 20% of total income. We will keep under close review the introduction of personal health budgets and the palliative care tariff, to ensure we can respond effectively and appropriately. We will work to further strengthen our financial management and reporting structures.
Fundraising Our fundraising team will continue to deliver a wide range of events and initiatives, and will also develop new opportunities to strengthen engagement with our communities, companies, and the general public.
Specifically, they will run a new mass participation event in York, the Colour Me Happy Fun Run; launch a Business Club with the aim of recruiting 100 SMEs; strengthen relationships with the Asian communities in West Yorkshire; update promotional leaflets and marketing materials.
Charity registration number 517919 / Company registration number 2016332 12
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
We plan to open a further 2 shops during the next 2-3 years. We will appoint an Assistant Retail Development Manager to enable us to grow our retail operations and improve profitability.
Communications We wish to raise the profile of Martin House and raise awareness and understanding of children’s palliative care in Yorkshire. To help us do this, we will: • appoint a number of high profile Ambassadors; • implement a new website, including a new mobile responsive website for use on smartphones and iPads; • further develop our use of social media to reach families and supporters; and • publish an impact report.
People It is crucial that Martin House attracts, retains and develops the right staff and volunteers with the right skills to meet the objectives of the hospice in a changing environment. To help us achieve this, we will: • strengthen our internal communications; • review our pay and reward systems; • ensure every staff member receives an effective appraisal; • undertake a staff survey across the whole organisation; • set up staff and volunteer consultative forums; and • develop a volunteering strategy.
External Affairs We will continue to engage with statutory commissioners to ensure we can respond appropriately to the changing legislative and funding environments.
We believe that effective collaborative working will be critical to the future sustainable delivery of children’s palliative care and we will work with other providers, through the YHPPCN and other mechanisms, to ensure this happens.
Governance We will review our governance and management structures to ensure that they remain effective and fit for purpose. We will also put in place a Board development programme to support the trustees in their role.
Principal Risks and Uncertainties The major risks to which Martin House is exposed and the systems in place to mitigate those risks are reviewed regularly by the senior management team and at least annually by the trustees. The risk assessments include strategic, operational and financial risks. The Trustees are committed to strengthening risk management and will consider this as part of the governance review.
Charity registration number 517919 / Company registration number 2016332 13
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
The principal risks facing Martin House are clinical, financial and political. As a charity relying mainly on voluntary donations we always face the challenge of balancing the uncertainty of income with the certainty of increased costs and the need for investment. The future financial environment is made more uncertain as a result of the NHS commissioning reforms, which came into effect on 1 April 2013, and the expected introduction of a new NHS funding system for palliative care in 2015.
In addition, there are a number of recent legislative changes which will impact on the services we offer to children, young people and families, including the Care Act 2014 and Children and Families Act 2014. We are staying closely involved in the development of these programmes to ensure that we are able to influence and respond appropriately. In October 2013, the Commission into the Future of Hospice Care published its final report3. This report sets out the key challenges and risks facing hospices in the future and makes recommendations on how hospices might respond. The trustees and management team at Martin House have considered these findings and recommendations carefully and taken them into account when developing plans for the future.
We are addressing all risks through our strategic and operational planning processes and trustees believe that all major risks are being mitigated.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document Martin House is registered charity and a company limited by guarantee. It is governed by a Memorandum and Articles of Association, amended on 1 December 2009.
How We Are Governed The Board of Trustees acts collectively and is responsible for the overall philosophy and strategic direction of Martin House and ensuring that the charity is solvent, well-run, acts within its governing document and other relevant legislation. The Board meets at least quarterly and delegates the general management and operational activities of the hospice to the Chief Executive.
The Board has delegated some if its powers and responsibilities to two Board committees: • The Finance and Resources Committee exercises oversight of Martin House’s finances, including its systems of financial control and risk management, budgets and accounts, capital expenditure and the management of its investments and cash resources. The Committee also reviews the results of the annual statutory audit and oversees the conduct and appointment of our auditors. The Committee is also responsible for employee remuneration, terms and conditions and policies and practices.
• The Research Committee oversees the development and implementation of the Martin House research strategy. This includes ensuring that any research meets high standards of ethical practice; reviewing and recommending research projects and proposals to the Board for funding or support; monitoring research projects; and, promoting research awareness throughout Martin House.
3 Future ambitions for hospice care: our mission and our opportunity – Help the Hospices, October 2013
Charity registration number 517919 / Company registration number 2016332 14
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Our Trustees There are a number of trustee changes to report. In July 2013, David Johnson resigned as chairman and tragically passed away on 27th October. His contribution as a trustee and as our chairman is greatly missed. Will Lifford was appointed chairman in David’s place. Fiona Hicks was appointed vice chair in November 2013.
Professor Cliff Bailey, Robin Wood and Derek Chapman have retired and Victor Watson has decided not to seek reappointment at the forthcoming AGM. All have been trustees for many years, Cliff and Derek also as vice chairmen. They retire with our sincere thanks for their significant contributions to the development of Martin House.
The trustees retiring by rotation at the annual general meeting, other than Victor Watson, are Susan Picton, Jennifer Wilkinson, David Swarbrick and Fiona Hicks and are all eligible for re- election. The power of appointment rests with the members in an annual general meeting and on the recommendation of the trustees.
All the trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note nine to the accounts.
Appointment, Induction and Training of Trustees New trustees are appointed following a careful selection process which typically includes public advertisements and interviews. Following appointment, new trustees undertake an induction programme to familiarise themselves with Martin House and their responsibilities as trustees. Trustees receive training as appropriate on their roles and responsibilities, and briefings on developments affecting Martin House and the wider hospice sector.
Organisational Structure Martin House employs, on average, 151 staff (117 FTE). The Chief Executive, who joined Martin House in September 2013 following the retirement of the Director of Business and Support Services, is responsible for the operation of Martin House. She is appointed by and accountable to the Board and is supported by a Strategic Management Team comprising a Director of Clinical Services (also Deputy Chief Executive), Medical Director/Consultant in Paediatric Palliative Care, Finance Manager, Head of Fundraising, Facilities Manager and HR Manager.
The care team, which comprised an average of 92 staff (77 FTE) during the year, is led by the Director of Clinical Services. She is supported by 2 Deputy Directors of Care and a team of 5 Care Team Leaders. The care team work in interdisciplinary teams comprising a range of professional backgrounds, including: a team of 5 doctors, led by a Consultant in Paediatric Palliative Medicine, who provide 24/7 medical cover for the hospice; a Consultant Clinical Psychologist; registered nurses, including registered children’s and learning disabilities nurses; physiotherapists; occupational therapists; a social worker; nursery nurses; music therapists; artists in residence; educationalists; a lay chaplain; and a chef. A team of bank staff is also available to cover emergencies and sickness.
Charity registration number 517919 / Company registration number 2016332 15
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
We also have: a facilities team, who maintain and develop the building, grounds and IT infrastructure; a fundraising team, who bring in the c.£3.5m of voluntary income required each year to deliver our services; a retail team, who manage and develop our 8 shops and retail operations; and a finance and administration team, who ensure the efficient and smooth running of the organisation.
The paid staff are supported by over 250 regular volunteers, who work in fundraising, our shops, gardening, reception, kitchen, IT and maintenance. Without our volunteers we simply could not operate and we are immensely grateful for the enormous contribution they make to Martin House.
Auditor Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and Baker Tilly UK Audit LLP will therefore continue in office. The trustees, in their capacity as directors, hereby approve the Trustees’ Annual Report and the incorporated Strategic Report.
Will Lifford Chairman 22 July 2014
Charity registration number 517919 / Company registration number 2016332 16
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Statement of Trustees’ Responsibilities in Respect of the Trustees’ Report and the Financial Statements
The trustees (who are also directors of Martin House for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments 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 charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware:
there is no relevant audit information of which the charitable company's auditor is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Charity registration number 517919 / Company registration number 2016332 17
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Independent auditor’s report to the members of Martin House
We have audited the financial statements of Martin House for the year ended 30 April 2014 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees’ responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditscopeukprivate
Opinion on financial statements In our opinion the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 30 April 2014 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Report and the incorporated Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - the charitable company has not kept adequate accounting records, 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.
VICTORIA CRAVEN (Senior Statutory Auditor) For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory Auditor Chartered Accountants 2 Whitehall Quay Leeds LS1 4HG Date
Charity registration number 517919 / Company registration number 2016332 18
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Statement of financial activities (incorporating an income and expenditure account and statement of recognised gains and losses) for the year ended 30 April 2014
Note 2014 2014 2014 2013 (restated) Unrestricted Restricted Total Total Funds funds funds Funds £ £ £ £ Incoming resources from generated funds Voluntary income Donations, gifts and fund raising 1,699,890 247,901 1,947,791 1,869,615 Legacies 886,019 - 886,019 646,190
Activities for generating funds Income arising from donated goods 4 577,947 - 577,947 447,344 Fundraising events and lottery 626,847 1,569 628,416 678,181
Investment income Income from investment and bank interest 3 401,539 - 401,539 420,825 Net income from trading company 4 43,255 - 43,255 19,734
Incoming resources from charitable activities Funding from Clinical Commissioning Groups 667,355 51,150 718,505 813,630 NHS England grants - 557,972 557,972 334,741 Other income 43,479 - 43,479 34,619
Total incoming resources 4,946,331 858,592 5,804,923 5,264,879
Resources expended Cost of generating funds - Cost of generating voluntary income 5 434,003 37,251 471,254 433,223 - Shop expenditure, donated goods 5 378,197 - 378,197 289,939 - Cost of fundraising events and lottery 5 277,578 - 277,578 321,604 - Investment management cost 5 46,818 - 46,818 41,879
Charitable activities 6 3,328,029 460,362 3,788,391 3,809,086 Governance costs 7 35,744 - 35,744 27,287
Total resources expended 8 4,500,369 497,613 4,997,982 4,923,018
Net incoming resources before transfers 2 445,962 360,979 806,941 341,861 Transfers between funds 17 324,605 (324,605) - -
Net incoming resources before other recognised gains & losses 770,567 36,374 806,941 341,861 Net realised & unrealised gains on investments 11(a) 694,474 - 694,474 1,600,803
Net movement in funds for the year 1,465,041 36,374 1,501,415 1,942,664 Funds brought forward at beginning of year 18,255,227 60,268 18,315,495 16,372,831
Funds carried forward at end of year 18 19,720,268 96,642 19,816,910 18,315,495
The results for the year all relate to continuing operations.
Charity registration number 517919 / Company registration number 2016332 19
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Balance sheet as at 30 April 2014 2014 2013 £ £ £ £ Fixed assets Tangible Assets 10 3,842,214 3,625,086 Investments 11 14,046,398 12,719,637
17,888,612 16,344,723 Current assets Debtors 12 616,640 387,742 Cash on deposit, at bank, in hand 13 1,895,633 2,053,454
2,512,273 2,441,196
Creditors: amounts falling due within one year 14 (583,975) (470,424)
Net current assets 1,928,298 1,970,772
Net assets 19,816,910 18,315,495
Funds Restricted Funds Revenue 17 31,498 6,755 Capital 17 60,931 49,300 Children’s Palliative Care Network 17 4,213 4,213
17 96,642 60,268 Unrestricted Funds Represented by: Tangible fixed assets 18 3,842,214 3,625,086 Permanent investment fund - designated 18 14,046,398 12,719,637 Free reserves 18 1,831,656 1,910,504 19,720,268 18,255,227
19,816,910 18,315,495
These financial statements were approved by the board of Trustees on 22nd July 2014 and were authorised for issue and signed on its behalf by:
W L Lifford Trustee
F Hicks Trustee
Charity registration number 517919 / Company registration number 2016332 20
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Cash flow statement for the year ended 30 April 2014
Note 2014 2013 £ £ £ £
Net cash inflow from operating activities 485,863 171,550
Returns on investments and servicing of finance Interest and dividends received 401,539 420,825
Net cash inflow from returns on investments and servicing of finance 401,539 420,825
Capital expenditure Purchase of tangible fixed assets 10 (413,486) (113,164) Sale proceeds of tangible fixed assets 550 3,451 Purchase of investments 11(a) (3,122,450) (711,687) Sale of investments 11(a) 2,505,414 602,086
(1,029,972) (219,314)
(Decrease)/increase in cash 19 (142,570) 373,061
Reconciliation of net incoming resources to net cash inflow from operating activities 2014 2013 £ £
Net incoming resources 806,941 341,861 Interest and dividends received (401,539) (420,825) Profit on sale of fixed assets (285) (2,555) Depreciation charge 196,093 194,165 Increase in debtors (228,898) (66,980) Increase / (decrease) in creditors 113,551 125,884
Net cash inflow from operating activities 485,863 171,550
Charity registration number 517919 / Company registration number 2016332 21
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (Forming part of the financial statements)
1 Accounting policies The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company’s financial statements.
Basis of preparation The financial statements have been prepared in accordance with applicable accounting standards, and under the historical cost accounting rules, modified to include the revaluation of investments. The financial statements have also been prepared in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ (SORP 2005) and the Companies Act 2006. The Trustees consider that the results of its subsidiary undertaking, Martin House (Shops) Limited, are not material to the group. As a consequence they have considered paragraph 383(c) of the SORP and have not prepared consolidated financial statements. Details of the subsidiary are shown in note 4 and note 11(b) to the financial statements. All the profits are payable to the charity and therefore the net income is included in the Statement of Financial Activities.
Restatement of comparative figures The charity receives grant funding of £64,173 annually, to contribute directly towards the cost of the employer contributions payable to the NHS Pension Scheme. In previous years, this grant funding has been netted off against the pension cost. This year, for the first time, the grant funding has been included as income in the Statement of Financial Activities, and the employer pension cost shown gross within our charitable expenditure. Comparatives have been restated for consistency of presentation in respect of this grant funding. The impact of this is to increase Incoming resources from charitable activities by £64,173 from £270,568 to £334,741 and to increase resources expended on Charitable Activities by £64,173 from £3,744,913 to £3,809,086. There is no impact upon the surplus as a result of this change.
Going Concern The charitable company meets its daily working capital requirements through its bank account which has funds of £1.9m at 30 April 2014. The current economic conditions have created an element of uncertainty over the return from listed investments and have continued to place reliance on the funding from voluntary donations and grants. Given the charitable company’s favourable fundraising record and the level of free reserves available at the year end, the Trustees consider that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Accordingly the financial statements have been prepared on a going concern basis.
Format of financial statements In view of the nature of the charitable company’s activities, the headings in the Companies Act 2006 Schedule 4 are perceived to be inappropriate and a Statement of Financial Activities is presented in place of the prescribed profit and loss account. The Trustees have taken advantage of paragraph 3(3) of Schedule 4 of the Companies Act 2006 which allows the preparation of financial statements to be adapted to reflect the special nature of the charitable company’s business.
Company status The company is limited by guarantee; the liability of the members is limited to one pound.
Fund accounting Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.
Restricted funds can only be used for particular restricted purposes within the objectives of the charity. These arise when funds are subject to specific restrictive conditions imposed by funders/donors or by the purpose of the grant. The purpose and use of the restricted funds is set out in note 17.
Charity registration number 517919 / Company registration number 2016332 22
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
1 Accounting polices (continued)
Incoming resources Incoming resources are recognised in the year in which entitlement arises and the amount can be measured with certainty. Income is deferred: where the company has to fulfil conditions before becoming entitled to it, where the income is received specifically for expenditure in a future accounting period, and where donations, sponsorship and entry fees are received in anticipation of an event to be held in a future accounting period.
Legacies Pecuniary legacies are recognised at the earlier of receipt or notification of the legacy. Residuary legacies are recognised at the earlier of receipt or finalisation of the estate accounts.
Gifts in kind and volunteers’ contributions Martin House benefits greatly from a variety of gifts in kind and voluntary contributions. Gifts donated for resale are included as income when they are sold. Fixed assets donated to the charity are included as donation income at market value at the time of receipt. Consumables and small items donated for fundraising activities are not recognised in the financial statements. No amounts are included in the financial statements for services donated by volunteers.
Resources expended Resources expended are included in the Statement of Financial Activities on an accruals basis inclusive of any VAT that cannot be recovered. Resources expended are allocated directly to a particular activity where costs relate directly to that activity. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.
Cost of generating funds These include the salaries, direct expenditure and overhead costs of the fundraising team as well as lottery and event costs, investment management costs and shop expenditure for the sale of donated goods.
Charitable activity costs These include the salaries, direct expenditure and overhead costs of the care and support team.
Governance costs These include a proportion of one staff member’s salary, the audit fee and related audit costs and trustee expenses.
Operating leases Rentals payable are charged on a time basis over the lease term.
Fixed assets and depreciation Fixed assets are stated at cost. Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:
Freehold buildings - 2-4% straight line Furniture and fittings - 25% straight line Office furniture and equipment - 20% to 33% straight line Vehicles - 25% reducing balance
All capital expenditure over £250 is capitalised as an asset.
Charity registration number 517919 / Company registration number 2016332 23
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
1 Accounting polices (continued)
Listed investments All investments are re-valued at mid-market value at the year end. Unrealised changes made to the balance sheet market values are reflected in the Statement of Financial Activities together with realised profits and losses on sales of investments during the year.
Stocks Donated goods for resale are valued at £nil and are included in the accounts in the accounting period in which the gift is sold.
Pensions Employees that have previously worked for the NHS are entitled to continue to contribute to the NHS Pension Scheme subject to certain conditions. The NHS Scheme is an unfunded final salary scheme operated by the National Health Service. The contributions are calculated so as to spread the cost of pensions over employees’ working lives, whilst they remain in qualifying employment, in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of periodic valuations, and any deficit is underwritten by the Treasury.
The scheme is not designed to be run in a way that would enable employers of eligible employees to identify their share of the underlying scheme assets and liabilities, and the scheme is unfunded. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the amount charged against profits represents the contributions payable to the scheme. Staff not entitled to join the NHS Scheme can join a stakeholder pension scheme, which is a defined contribution scheme. The amount charged against profits for the stakeholder scheme represents the contributions payable to the scheme in respect of the accounting period.
Cash and liquid resources Cash, for the purpose of the cash flow statement, comprises cash in hand and deposits repayable on demand. Liquid resources comprise term deposits of less than one year (other than cash).
Tax Martin House is considered to be a charity for tax purposes and therefore benefits from exemptions from tax on its income and gains falling within Part 11 of the Corporation Tax Act 2010 and on gains falling within section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year.
2 Net incoming resources 2014 2013 £ £ Net incoming resources are stated after charging/(crediting):
Depreciation of tangible fixed assets 196,093 194,165 Profit on disposal of fixed assets (285) (2,555) Auditor’s remuneration - audit 7,920 7,740 - other services - - Operating lease rentals in respect of land and buildings 102,020 75,180
Charity registration number 517919 / Company registration number 2016332 24
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
3 Investment income Unrestricted Unrestricted 2014 2013 £ £
Gross dividends and interest receivable from listed investments 373,053 386,333 Interest from building society and banks 24,020 26,165 Property rent 4,466 8,327
401,539 420,825
4 Net income from trading company
Martin House Total Total Martin House (Shops) Ltd shops shops 2014 2014 2014 2013 £ £ £ £
Income from the sale of donated goods 335,880 - 335,880 343,709 Income from the sale of other goods - 92,351 92,351 90,866 Income arising from the retail gift aid scheme 242,067 14,924 256,991 110,026
Total income from shops 577,947 107,275 685,222 544,601 Cost of sales - (41,723) (41,723) (39,621)
Gross profit 577,947 65,552 643,499 504,980 Rent and rates (113,523) - (113,523) (86,439) Staff and other costs (316,718) - (316,718) (241,402)
147,706 65,552 213,258 177,139
Recharge to Martin House (Shops) Limited 52,044 (52,044) - -
Net income from shops 199,750 13,508 213,258 177,139
Income arising from the retail gift aid scheme, includes donations of £196,987 and the associated gift aid of £45,080 resulting from sales on behalf of Martin House supporters undertaken by Martin House (Shops) Ltd as agent.
The total profits arising in the trading company comprise £13,508 net profits from shop activity and £29,747 royalty income. All profits are donated to the parent charity.
Charity registration number 517919 / Company registration number 2016332 25
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
5 Costs of generating funds Unrestricted Restricted Total Total 2014 2014 2014 2013 £ £ £ £ Costs of generating voluntary income Staff costs (Note 9) 297,777 - 297,777 289,912 Publicity and newsletter 54,483 - 54,483 58,538 Consultancy fees 7,041 - 7,041 2,282 Other 74,702 37,251 111,953 82,491
434,003 37,251 471,254 433,223
Shop expenditure donated goods Staff costs (Note 9) 190,363 - 190,363 149,311 Other 187,834 - 187,834 140,628
378,197 - 378,197 289,939
Lottery and event costs Staff costs (Note 9) 65,437 - 65,437 64,191 Other 212,141 - 212,141 257,413
277,578 - 277,578 321,604
Investment management 46,818 - 46,818 41,879
6 Charitable activities
Unrestricted Restricted Total Total 2014 2014 2014 2013 (restated) £ £ £ £ Provision of care: Staff costs (note 9) 2,209,610 450,371 2,659,981 2,646,790 Consumables 162,140 1,000 163,140 170,460 Other 229,321 5,281 234,602 245,521
Support costs: Staff costs (note 9) 506,045 - 506,045 475,067 Establishment 220,913 3,710 224,623 271,248
3,328,029 460,362 3,788,391 3,809,086
Charity registration number 517919 / Company registration number 2016332 26
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
7 Governance costs Unrestricted Total Total 2014 2014 2013 £ £ £
Staff costs (Note 9) 19,895 19,895 16,528 Audit costs 7,920 7,920 7,740 Other costs 7,929 7,929 3,019
35,744 35,744 27,287
8 Total resources expended
Staff costs Depreciation Other costs Total Total 2014 2014 2014 2014 2013 (restated) £ £ £ £ £
Direct charitable expenditure 3,166,025 180,393 441,973 3,788,391 3,809,086 Governance costs 19,895 - 15,849 35,744 27,287 Costs of generating funds 553,580 15,700 604,567 1,173,847 1,086,645 ______
Total resources expended 3,739,500 196,093 1,062,389 4,997,982 4,923,018
9 Staff numbers and costs The average number of staff employed by the charitable company during the year was as follows:
Average headcount Average FTE 2014 2013 2014 2013 Charitable activities – care team and support 116 112 94 89 Fundraising and shops 35 31 23 20 ______
151 143 117 109
Charity registration number 517919 / Company registration number 2016332 27
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
9 Staff numbers and costs (continued) The aggregate payroll costs of these persons were as follows: 2014 2013 (restated) £ £ Wages and salaries 3,289,316 3,179,846 Social security costs 213,421 232,950 Other pension costs (note 15) 236,763 229,003
3,739,500 3,641,799
Included in the above costs is £117,126 in respect of one member of the medical team contracted to the charity by a local NHS trust. The Trustees do not receive any remuneration. During the year no expenses were paid to trustees (2013: £nil). Trustees are not included in the average number of employees. In accordance with the Memorandum of Association the charity purchased charity and charity trustee indemnity insurance. The cost of this insurance included in the statement of financial activities was £530 (2013: £530). The number of higher paid employees is disclosed below. 2014 2013 No. No. £60,000 to £70,000 2 1
Contributions of £3,598 (2013: £2,602) were made to the Martin House Stakeholder Scheme, a defined contribution scheme, for two higher paid employees (2013: one). 10 Tangible fixed assets Office Furniture furniture Freehold land and and and Buildings fittings equipment Vehicles Total £ £ £ £ £ Cost At beginning of year 4,582,726 801,240 479,525 210,938 6,074,429 Additions 244,522 115,388 53,576 - 413,486 Disposals - (270) (36,326) - (36,596)
At end of year 4,827,248 916,358 496,775 210,938 6,451,319
Depreciation At beginning of year 1,189,934 680,693 414,098 164,618 2,449,343 Charge for year 90,746 60,536 33,231 11,580 196,093 On disposals - (5) (36,326) - (36,331)
At end of year 1,280,680 741,224 411,003 176,198 2,609,105
Net book value At 30 April 2014 3,546,568 175,134 85,772 34,740 3,842,214
At 30 April 2013 3,392,792 120,547 65,427 46,320 3,625,086
Charity registration number 517919 / Company registration number 2016332 28
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued) The cost of freehold land and buildings includes £75,000 (2013:£75,000) of land which is not depreciable, and additions of £270,739 relating to an extension to the building, the Den project, which has not yet been brought into use and so no depreciation has been charged in this year.
11 Fixed asset investments 2014 2013 £ £ Listed investments (note 11(a)) 13,981,154 12,669,644 Cash held as part of investment portfolio 65,242 49,991 Investment in Martin House (Shops) Limited (note 11(b)) 2 2
14,046,398 12,719,637
These investments both in income and long term growth support the work of the hospice. 11(a) Listed investments 2014 2013 Total Total £ £ Market value at beginning of year 12,669,644 10,959,240 Additions 3,122,450 711,687 Disposals (Proceeds) (2,505,414) (602,086) Realised and unrealised investment gains 694,474 1,600,803
Market value at end of year 13,981,154 12,669,644
Cost at end of year 10,924,748 9,772,238
Analysis of market value of listed 2014 2013 investments by type of fund: Total Total £ £ UK bonds 2,479,984 2,570,405 UK equities 6,657,475 6,035,832 Overseas equities 3,835,607 3,222,280 Property 566,300 429,134 Other 441,788 411,993
Market value at end of year 13,981,154 12,669,644
11(b) Investment in Martin House (Shops) Limited Martin House (Shops) Limited is a wholly owned subsidiary which is registered in England and Wales and whose principal activity is the sale of bought goods for the benefit of Martin House. The investment in this company is:
2014 2013 £ £ Shares at cost 2 2
Charity registration number 517919 / Company registration number 2016332 29
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued) The capital and reserves of Martin House (Shops) Limited at 30 April 2014 amounted to £2 (2013: £2). Martin House (Shops) Limited pays all profits to Martin House. Consequently, its retained profit for the year ended 30th April 2014 amounted to £nil (2013: £nil). 11(c) Investment in Land Martin House is the beneficiary of a piece of farmland in Cleckheaton. This has been given for conversion to cash by the charity as a donation but is currently subject to an option agreement with a developer until February 2017. It has therefore not been included in the financial statements. The current value of the land is estimated at £24,000 as agricultural land.
12 Debtors Due within Due within one year one year 2014 2013 £ £
Amounts due from Martin House (Shops) Limited 21,246 13,458 Other taxes and social security - 998 Legacies due, accrued income and prepayments 595,394 373,286
616,640 387,742
The amounts due from Martin House (Shops) Limited include a loan of £5,000 covered by a debenture dated 30 April 1992 which provides for interest to be paid at 3% over Barclays Bank Plc base rate. The debenture is secured by a floating charge over all the assets of the company, and there is no fixed date for repayment. 2014 2013 13 Cash at bank, in hand and on deposit £ £ CCLA Investment Management Ltd 51,391 51,174 Interest bearing bank and building society deposits 1,843,521 2,001,740 Cash in hand 721 540
1,895,633 2,053,454
14 Creditors: amounts falling due within one year 2014 2013 £ £
Trade creditors 189,120 103,934 Other taxes and social security costs 69,869 68,885 Other creditors 40,140 30,941 Accruals and deferred income 284,846 266,664 ______583,975 470,424
Deferred income Bfwd Brought into current year Deferred in year Cfwd movements £185,366 £185,366 £201,926 £201,926
Income deferred in the year includes income invoiced in advance and fundraising income for events to be held during 2014/15.
Charity registration number 517919 / Company registration number 2016332 30
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
15 Pension costs Employees belong to two pension schemes: the NHS Scheme and a stakeholder scheme, both of which are treated as defined contribution schemes under FRS 17. 2014 2013 (restated) £ £
NHS Scheme 183,548 182,330 Stakeholder scheme 53,215 46,673
236,763 229,003
NHS Scheme Eligible employees (as defined by section 7(2) of the Superannuation (Miscellaneous Provisions) Act 1967) are able to remain in the NHS Pension Scheme as if they were still in employment of an employing authority. The NHS Pension Scheme is an unfunded occupational scheme backed by the Exchequer, which is open to all NHS employees and employees of other approved organisations. The Scheme provides pensions, based on final salary, in varying circumstances for employees of participating employers. The Scheme receives contributions from employees and employers to defray the costs of pensions and other benefits. The scheme is subject to a full actuarial valuation every four years and an accounting valuation every year. Details of the benefits payable, and the basis for the valuations under these provisions can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions.
16 Commitments Annual commitments under non-cancellable operating leases are as follows: Land and buildings 2014 2013 £ £ Operating leases which expire within one year 14,190 8,250 Operating leases which expire between one and two years 25,000 - Operating leases which expire between two to five years 60,000 65,940 Operating leases which expire after more than five years 15,725 15,725
114,915 89,915
Capital commitments at the balance sheet date: 2014 2013 £ £ Authorised and contracted for: Den project – costs to completion 27,510 - New server installation – costs to completion 20,111 -
47,621 -
Charity registration number 517919 / Company registration number 2016332 31
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
17 Statement of Funds As At As at 1 May Investment 30 April 2013 Income Expenditure gains Transfers 2014 Unrestricted Funds £ £ £ £ £ £ General fund 5,535,590 4,946,331 (4,500,369) - (307,682) 5,673,870 Permanent Investment fund 12,719,637 - - 694,474 632,287 14,046,398
18,255,227 4,946,331 (4,500,369) 694,474 324,605 19,720,268
Restricted Funds Good Night’s Sleep Appeal - 97,380 (97,380) - - - Bereavement Funding - 18,250 (18,250) - - - NHS England grant - 270,568 (270,568) - - - Pension indexation funding - 64,173 (64,173) - - - Capital – bedrooms 32,800 - (786) - (32,014) - Den project funding - 280,815 - - (249,702) 31,113 Garden fund 6,755 - (682) - (6,073) - Other capital funds 16,500 49,641 (2,607) - (33,716) 29,818 Funding for IT projects - 77,765 (43,167) - (3,100) 31,498 Children’s Palliative Care Network 4,213 - - - - 4,213
60,268 858,592 (497,613) - (324,605) 96,642
Unrestricted funds General Funds – These represent the free reserves and fixed assets of the charity that are not designated or restricted for particular purposes. Permanent Investment Fund – This fund has been designated by the Trustees as those medium to long term investments by the charity that provide longer term protection for the families dependent on us.
Restricted Funds – represent monies received for specific purposes as follows: The Good Night’s Sleep Appeal – is a direct appeal in conjunction with BBC Radio York, to raise monies towards the cost of in-hospice care for children and young people in North Yorkshire. Bereavement funding – grant funding from Leeds Community Foundation to support our bereavement work. NHS England Grant – This is a grant received to support us in our aim to continue the provision of the high level of specialist care for the children and families in Yorkshire. Pension indexation funding – is a contribution from NHS England towards the cost of our employer’s NHS pension contributions. Capital - This is funding given towards the redesign of some of the parents’ bedrooms, adding en-suite bathrooms. Den project funding – includes funding from NHS England, Variety Club, Jimbo’s and other charitable trusts towards the complete transformation of the teenage ‘Den’. Garden Fund – This fund is for income received towards the re-design of the quiet garden and development of the grounds. Other capital funds – Consist of contributions from Trusts and other sources for specific items of equipment. Funding for IT projects – during the year we received funding from NHS Health Education England and Leeds South & East CCG to purchase new fundraising database software and development, and a Data Management System.Children’s Palliative Care Network – This is funding received to meet the cost of network meetings.
Charity registration number 517919 / Company registration number 2016332 32
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
Transfers Transfers totalling £324,605 have been made from restricted to general funds where capital expenditure has been incurred from restricted funds, and the assets purchased are held for a general purpose within the charity. Transfers of £632,287, consisting of cash and donated gilts, were added to the Permanent Investment Fund from general funds during the year.
18 Analysis of net assets between funds
Tangible Investments Net current Total fixed assets assets £ £ £ £
Restricted funds - Capital - - 60,931 60,931 - Revenue - - 31,498 31,498 - Children’s Palliative Care Network - - 4,213 4,213 Unrestricted Funds - Designated - 14,046,398 - 14,046,398 - Other 3,842,214 - 1,831,656 5,673,870
3,842,214 14,046,398 1,928,298 19,816,910
19 Analysis of net cash funds At beginning At end of year Cashflow of year £ £ £
Cash in hand 540 181 721 Cash on short term deposit 2,052,914 (158,002) 1,894,912
2,053,454 (157,821) 1,895,633 Cash held on deposit with Brewin Dolphin (See note 11) 49,991 15,251 65,242
Net cash funds 2,103,445 (142,570) 1,960,875
20 Reconciliation of net cash flow movement in cash 2014 2013 £ £
(Decrease)/increase in cash in the year (142,570) 373,061 Net cash at 1 May 2013 2,103,445 1,730,384
Net cash at 30 April 2014 1,960,875 2,103,445
Charity registration number 517919 / Company registration number 2016332 33
Martin House (Limited by Guarantee) Trustees’ report and financial statements 30 April 2014
Notes (continued)
21 Related party transactions Transactions in connection with the trading subsidiary are disclosed above. During the year, the charity paid £4,800 to the spouse of Michael Millington, one of the trustees, under a temporary contract of employment (2013: £nil).
22 VAT group The charity is party to a cross guarantee in respect of a group VAT registration. At 30 April 2014 the total group VAT balance was a debtor of £972 (2013: VAT payable of £511).
Charity registration number 517919 / Company registration number 2016332 34