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Annual Report and Financial Statements

Children's Hospice South West Annual Report and Financial Statements for the year ended 31 March 2020.

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Annual Report and Financial Statements

For the year ended 31 March 2020

Company No. 02620879 (England and Wales)


We are starting this report by saying

a massive thank y u to every one

of you who helps Children’s Hospice

South West achieve its purpose.

At the beginning of 2020 we were making great progress on our ambitious plans

to grow our services and then in March everything changed. Within a matter of

days as lockdown began we responded quickly to the ways families needed our

help given that most were now ‘shielding’: for the first time we offered care in

their homes and perhaps most importantly provided support ‘virtually’. We also

needed to ensure that our hospices were ‘COVID-secure’.

The pandemic also continues to have a seismic effect on fundraising: mass

participation events are no longer possible and all our shops had to be closed.

Thrillingly, however, new ideas for fundraising started popping into social

media feeds and we saw our supporters, often the children themselves being

incredible and raising funds. You can read some wonderful examples of how

our staff and supporters rose to the challenge further on in the report.

We have been able to continue supporting children with life-limiting illnesses

and their families because everyone involved has quickly adapted to new ways

of working through the COVID-19 pandemic.

Recently times have been very challenging for everyone but as we look back over

the past year we can see how much we have achieved. Looking forward to next

year and beyond, although much will change in the way we do things fundamentally

our purpose will not. We are here to make the most of short and precious lives

and put children and families at the centre of all the charity does.

Patricia Morris

Chair of Trustees

Eddie Farwell MBE

Co-Founder and Chief Executive

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 1


Contents

Trustees’ report 3

Strategic report 6

Financial statements 20

Consolidated statement

of financial activities 20

Balance sheet

(group and charity) 21

Consolidated cash flow

statement 22

Notes to the

accounts 23

Accounting policies 38

Audit report 42

Structure

governance and

management 44

Reference and

administration 47

Our fundraising

standards 48

Page 2 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Trustees’ report (including the Strategic report) for the year ended 31 March 2020

ur objectives and activities

Our purpose, vision and ethos

ur purpose

is to make the most of

short and precious lives and

to put children and families

at the centre of all we do.

ur vision

is to provide high quality care

services to every child in the

South West who may not live

to their 18th birthday.

ur ethos

is to ensure that everyone

(Trustees, staff and volunteers)

place children and families at the

centre of the organisation.

In order to achieve this, everyone will be

expected to promote a strong, caring,

community environment, characterised

by a culture of sensitivity, trust,

consideration and respect for others.

Organisational principles

Our ethos gives rise to a set of principles which determine how Children’s Hospice South West (CHSW)

as an organisation operates on a day to day basis.

We will:

Be an organisation which places

children and their families at the

heart of all that we do.

Continually engage with and listen to

our children and families, employees,

volunteers and supporters.

Be one organisation with common

goals whilst tailoring services to

individual families, and according

to individual need.

Ensure that diversity, integrity,

quality and respect are an integral

part of all that we do.

Ensure that all staff, volunteers

and supporters are valued and

appreciated.

Ensure that everyone has the tools

to do their job and are provided with

appropriate opportunities to develop

and gain new skills.

Be ethical, open, honest and

compliant in all that we do.

Spend the money we raise wisely

with our focus being on the

care we provide.

Be safe, efficient and

environmentally aware.

Work collaboratively with our

colleagues and external partners.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 3


Trustees’ report

CHSW c re values and behaviours

Everyone working for, or on behalf of CHSW will act with / to:

Care and respect

for each other

Honesty, openness

and accountability

Strive for

excellence

Work

together

Recognising and accepting

our responsibility for

safeguarding children and

adults, protecting them

from harm.

Acting fairly and with

consideration, treating

others as we would wish

to be treated ourselves.

Finding out what

other colleagues do,

encouraging them and

recognising the value

that each brings to the

organisation.

Embracing and recognising

the importance of

difference and diversity.

Behaving with openness,

integrity and honesty.

Communicating swiftly

and openly and listening

to the views of

others respectfully.

Taking responsibility for

your own actions and being

accountable for them.

Sorting out mistakes

and concerns swiftly

and without fuss.

Seeking to continuously

develop and improve

for your own benefit and

for the charity.

Always protecting the

reputation of the charity.

Celebrating success.

We value the hospice

and the fabulous staff

there beyond words.

Ensuring dynamic

and harmonious team

working in order

to achieve success.

Working with and

involving our families,

supporters and volunteers,

understanding who

they are and what their

needs might be.

Making the best use

of organisational

resources having regard

to sustainability,

efficiency and respect

for the environment.

Page 4 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Trustees’ report

ur strategic objectives

Following a review in January 2020, our strategic aims extending to 2024 were reviewed and agreed as follows:

Care

We remain committed to providing high

quality, safe services to children who

may not live to their 18th birthday.

This includes respite care for the whole

family and being responsive when

families need us most including at end

of life and support during bereavement.

Our focus is to develop our care services

sustainably, ensuring we utilise our

three hospice bases and be there when

families need us most.

Strategic priorities to deliver this

aim by 2024

To have a care model that ensures we

have capacity to offer respite care to

children and families.

To develop and grow our clinical

expertise and resilience to respond

when families need us most.

Funding

To afford our care objectives by

delivering a step change in income

generation to deliver additional

annual income in excess of £2m

(minimum) by 2024.

Strategic priorities to deliver this

aim by 2024

Diversifying and developing

voluntary income streams.

Growing and strengthening retail

(including Gift Aid).

Growing net income from

CHSW Lottery.

Securing long term legacy pipelines.

Securing continuing statutory

funding (and increasing where

possible).

Marketing

To re-energise our brand awareness

and re-establish our positioning,

ensuring we remain a leading brand

name in the South West and the

charity of choice for charitable giving.

Strategic priorities to deliver this

aim by 2024

Research and benchmark brand /

hospice awareness, including

review of logo recognition and

evolution of brand identity.

Introduction of a campaign

approach to drive brand awareness

and donor acquisition.

Defining and segmenting target

audiences with clear messaging

to ensure donor retention and

donation growth.

To offer families choices with

flexibility about how they access

our services and where they wish

to be at end of life.

To build on the support services

on offer including psychological

support and sibling services.

We have come to regard the hospice

as a second home, a place where the

whole family can relax and leave

behind the stresses of everyday life.

Progress against our strategic aims will be monitored, reviewed, and evaluated by the Senior Management Team

(SMT) on a regular basis and by the assurance committees through Key Performance Indicators (KPIs) and board reports

at each meeting (currently three times per year).

Public benefit

The Trustees confirm that they have referred to the guidance contained in the

Charity Commission’s general guidance on public benefit when reviewing the

charity’s aims and objectives. The benefits are clearly set out in the achievement

section on pages 6-10. The Trustees review the activities of the charity against

its aims and objectives on an ongoing basis and are satisfied that all activities

continue to be related to its purpose. The beneficiaries are children and young

people with life-limited and life-threatening conditions and their families. A

referral process is in place, with clear guidance on criteria, to ensure that those

who meet the criteria are offered support by the charity.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 5


Strategic report

Amelia’s story

Three-year-old Amelia has spina bifida and uses a wheelchair.

She loves visiting Little Bridge House with mum, Jemma.

The family was referred to CHSW by

Amelia’s community children’s nurse and

Jemma admits that she was unsure about

what to expect before their first visit.

I always thought of a hospice being

an end-of-life environment, but it was

amazing,” said Jemma, “the building and

gardens are lovely, and the hospice

team is so kind, caring, supportive

and easy to talk too; they make you

feel welcome each time you stay.”

Jemma said the hospice gives the family

time to enjoy and make the most of

precious moments together. Grandma

has also visited and stayed with them at

Little Bridge House and Amelia’s daddy

is hoping to come soon too.

“We love coming to stay every few

months and Amelia is always asking

when we are coming back,” said Jemma.

“The hospice gives us time with Amelia

away from all the usual things happening

at home such as appointments; it’s

lovely to be able to spend quality time

together doing fun activities with the

help and support of the hospice team.

“Amelia enjoys

most things, such

as the hydrotherapy

pool, soft play area, the Narnia sensory

garden and main garden but I think her

favourite is music therapy and the doll’s

house. She also enjoys painting and

making cakes with the hospice team.

Jemma adds, “She really enjoys oneto-one

attention and likes to be doing

something all the time, which can

be tiring on a daily basis. But having

the help during our stay is lovely.

I can’t thank them

enough for everything

they’ve done for us and

especially Amelia - they

are amazing, like family.

Sarah’s story

Sarah was 16 years old when she was diagnosed with a brain tumour and cancer.

At 17, she was offered a referral to Little Harbour and often visited with her family.

Sarah juggled chemo with studies

and radiotherapy with exams. From

time to time, she would pop into

Little Harbour for a well-earned break,

to recharge her batteries and to be

surrounded by the best care. But it wasn’t

just Sarah who enjoyed visits to Little

Harbour; our whole family immersed

themselves in the support from the

hospice, with Sarah’s brother Steve going

on a siblings’ adventure weekend, Jane

becoming part of the mum’s support

group and myself having a go at a golf

taster day with the other dads. We were

able to put our complete trust in them.

The Care Team at Little Harbour were

with us every step of the way, guiding

and supporting us, through palliative

care and preparing us for end of life

care. At the age of 24, Sarah passed

away peacefully, in the very best place

for her, surrounded by her family and

large collection of cuddly toys.

Sarah had seen a lot of doctors, nurses

and other health professionals in

Cornwall and Bristol. She had been

on children’s wards and also received

treatment from adult services. The one

constant was Little Harbour and the

enduring care from the amazing team we

had developed such a special bond with.

We are eternally grateful to the whole

team at CHSW and everyone who helps

to raise money for families like ours.

It’s during this immensely difficult time that you realise

just how skilled and talented the Care Team really are.

Page 6 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Freddie’s story

Freddie has a range of complex medical needs

and visits Charlton Farm with his family.

Four years ago, when Freddie’s

epilepsy was bad, was when we

were introduced to Charlton Farm.

I think a lot of people when they hear

the word ‘hospice’ certainly don’t want

to think about it, but for most people,

it’s respite and having nurses there 24

hours a day and people who can help.

When I say to my friends we’re going

to the hospice, they ask ‘is everything

alright’? But I say we’re going for some

respite, some family time and we’re able

to pass over the care of Freddie. The staff

are unbelievably accommodating. They

know Freddie so well and he does what

he wants, even if it means going in the

hydrotherapy pool four times in a day!

At the hospice, it’s my downtime and I

don’t have to worry about meds or the

times, or that Freddie is having water

six times a day. And being able to go out

with just Joseph and not have to take

oxygen, emergency medications, the

wheelchair - the whole entourage!

Now my husband and I are separated,

we can both come and stay but we

rotate the nights, which is good for

Joe too as he gets one-to-one time

with both of us; it’s a really nice

arrangement. To know Freddie is really

well cared for is so reassuring. I know

if the worst happened here, everyone

would know what to do. Hospitals are

a sterile environment so it’s lovely to

know you can come here where it’s calm

and peaceful and you’re so supported,

it’s like having a big, comfortable

warm blanket around you. People are

here to help and hug; it’s wonderful.

With the respite I have, I

dedicate it all to Freddie’s

brother, Joseph. I really

try and make an effort to

give him more time.

Lucas’ coronavirus story

When Rachel and Jason both became ill with coronavirus, CHSW stepped in

to help them through the unthinkable challenge of caring for their son, Lucas.

Lucas has a rare genetic condition

and needs around-the-clock care so

the thought of not being able to look

after him terrified us.”

Within hours of making a panicked call

to Little Harbour, the Care Team arrived

at their family home to collect Lucas and

bring him to the safety of the hospice.

“They were completely amazing,” said

Rachel. “We felt a huge overwhelming

sense of relief when they said they

I hate the thought of

people caring for Lucas

who don’t know him, but

we know he is completely

safe at Little Harbour.

could help as we were very poorly and

just couldn’t give Lucas the level of care

he needed. There isn’t a part of Lucas

that isn’t affected by his condition.”

Sadly, within a few hours of arriving

at the hospice, Lucas also developed

COVID-19 symptoms. During the weeks

that followed, the team at Little Harbour

implemented new COVID-19 procedures

to care for Lucas while ensuring their

own safety. They maintained contact

with Rachel and Jason with regular

Zoom calls, and by sending pictures

and video of Lucas at the hospice.

“Claire and the team were just brilliant

and worked unbelievably hard to keep us

updated,” said Rachel. “We also knew we

were able to call whenever we wanted

to ask how Lucas was doing. Lucas

was even able to take part in a Zoom

call with his teacher and classmates.”

Lucas continued to make a complete

recovery over the next few weeks

and was soon able to go home to his

family in Plymouth.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 7


Strategic report

Our activities

Our unique care

Our service is built upon our

multidisciplinary Care Team, who

have been specially selected to

help enrich the lives of all the

children we care for. We are truly

committed to looking at how we

can continue to meet the needs of

our children and families, through

the enhancement of our services,

whilst ensuring they remain

sustainable for the future.

Keeping in touch

Our Care Team are in

frequent contact

with families, by

phone and home

visits as well as visiting

a child when they are in hospital.

Working in partnership

We are committed to

working in partnership

with other agencies

who work with the

families we serve,

whether statutory or voluntary.

What is important to children

and families in such extreme

circumstances is that we all work

together and that our Care Teams

fully support this approach.

Respite break

This gives our families

a chance to spend

time together, relax

and have some fun

as a family whilst

creating special memories.

Making the most of

every moment

Our hospice bases are

something we are really

proud of and have been

specially designed to

provide a safe space

where families can relax whilst

also receiving care. Soft play

rooms give every child a safe

place to laugh and play; sensory

rooms for calming stimulation,

music therapy, hydrotherapy

pools to ease stiff muscles and

have some fun, sensory gardens

for adventures outdoors as well

as specially adapted garden

equipment enabling everyone

to have fun outside. Alongside

these are areas where parents

and families can relax and unwind

in a homely environment.


At a time when we felt completely alone and scared the

hospice helped us through some of our darkest times.

Page 8 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Strategic report

Bereavement support

We stay alongside

families, offering

support after their

child’s death. All our

Care Team members

provide important bereavement

care for families as well as

offering bereavement events and

support groups. Families stay in

touch with us through events such

as hospice fetes and an annual

remembering service for as long

as they wish, often for many years.

Sibling support

Siblings also have

a long and sometimes

difficult journey

alongside their sick

brother or sister. We

provide dedicated support to

siblings who may feel isolated,

scared or confused. We provide

the opportunity for them to

meet other siblings and seek

support through play, sharing

some memorable times and

having some fun too, through

a range of special activities.

Emergency care

When families need us

most, we do our best to

be responsive. This is

frequently to respond to

medical / clinical needs

where through our expert

medical and nursing care we are

able to help manage symptoms.

We will always prioritise end of

life and clinical needs but at times,

we are also able to offer support

when families are in crisis to help

support resilience.

End of life care

When life’s journey ends,

we are there to stand

alongside families,

providing medical and

nursing expertise so that

family members can feel safe and

less anxious. After a child has died,

they can lie in our special Starborn

room. Families can also stay with us

during this time and our team are

on hand to guide and support them.

Many families draw comfort from

this and it becomes an important

step in the grieving process.

Whole family care

We believe that the whole

family should have

the opportunity to

accompany their child

to the hospice, so each

member is supported in the midst

of their impossible journey. We

look after the whole family; mums,

dads and siblings, as well as children

with life-limiting conditions.

Day Care

Families can come in and

make the most of our

facilities for the day

either supported by the

team or independently.

We are

never closed!

24 hours a day,

365 days a year for

emergency care, whenever

families need us.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 9


Strategic report

Key facts and how we have supported our beneficiaries

Who are we supporting?

580

children / young people

were part of CHSW in 2019/20 an

increase of 14 from the previous year.

1,058

parents / carers

were part of CHSW in 2019/20, an

increase of 20 from the previous year.

982

siblings

were part of CHSW in

2019/20, a increase of 41

from the previous year.

What type of activity have we seen?

12,092

total bed nights

in 2019/20, a

decrease of 560*.

7,951

family members

nights stayed in the

hospices in 2019/20, a

decrease of 577 from

the previous year*.

3,948

children

bed nights in

2019/20, a decrease

of 176 from the

previous year*.

111

day visits

in 2019/20, a

small decrease

of 7 from the

previous year*.

82

Starborn**

nights in 2019/20,

a decrease of

27 from the

previous year*.

4,813

parents / carers

nights stayed in 2019/20,

a decrease of 386 from

the previous year*.

3,138

sibling

night stays in 2019/20,

a decrease of 191

nights from 2018/19*.

3,584

respite

bed nights in 2019/20,

an decrease of 60 from

the previous year*.

364

emergency

bed nights in 2019/20,

a decrease of 116 from

the previous year*.

Care Summary and key achievements 2019/20

Alongside the provision of care for children young people and their families, the key areas of operational development and

continuous improvement have included the following:

reducing the number of hospice

cancellations;

restructure of the Quality

Governance Framework;

improve sustainability and efficiency

in the Care Team structure;

development and implementation

of care competencies;

transition to adult services;

a new clinical information system;

engagement with families.

* In March, in response to the global pandemic, CHSW made the difficult decision to cease offering respite care in

order to ensure we could protect our children and families. CHSW remained open 24/7 for emergency care, including

end of life care, hospital avoidance admissions and step down from acute hospital care services. This change of service

provision is reflected in our in-house stays at the end of March.

** ‘Starborn’ is the name given to the cold room in CHSW hospices that the children stay in after death.

Page 10 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Strategic report

COVID-19 pandemic

The CHSW Care Team pride themselves

on being adaptable and responsive

to children and family needs. This

approach was in abundance during the

global coronavirus pandemic where an

early response was demonstrated and

measures to keep children, families, and

staff safe were implemented. As the

pandemic developed, we recognised that

as an organisation, we would need to be

dynamic and work in new and different

ways to support both our families and the

wider healthcare effort in the respective

communities. This included caring for

our children not only in the hospice

(albeit it in a very different way to before)

but also in their own homes and virtually.

We were pro-active in linking with

partner providers, community trusts,

acute trusts and adult hospices to

offer additional support and liaised

with the respective Clinical

Commissioning Groups (CCGs)

developing different ways of working.

In the hospice, whilst we have not been

able to offer routine respite, we have

continued to provide a 24/7 service for:

children at the end of their life;

children requiring symptom

management;

children requiring step down care

from acute services;

children who would have ordinarily

needed a hospital stay;

children and families needing a short

term “resilience stay” due to extreme

social circumstances, for example

if the family is unwell or a problem in

the home such as a broken lift.

We have supported children, young

people and families in their own

homes in several ways:

nurses and carers have provided

full shifts of care, not a role

previously undertaken by

CHSW staff, in conjunction with

our partner agencies and provided

home visits by our medical teams

to assess care need;

we have provided doorstep support

visits, which also included the

delivery of cakes (baked by our own

cooks), food hampers (kindly donated

from local businesses) and games

(provided by our Sibling Teams);

we contacted local supermarkets to

ensure the families were included

on the ‘vulnerable’ list and supplied

key items such as wipes and nappies

from CHSW stores that families

were struggling to source.

Throughout this period, we have

embraced technology to support

the more dispersed workforce,

maintained close and regular contact

with our children, young people,

and their families and ensured

collaborative working with partner

providers. This virtual support included:

proactive contact with every family

to see what help and support

they needed and then we responded

to that individual need;

telephone support service for

all the children young people and

their families including those

who are bereaved;

remote consultations by the

medical teams;

the use of Zoom to provide supportive

but fun activities for siblings on

an individual basis and in groups.

Activities have included quizzes,

bingo, craft sessions (Crafty Zoom);

the use of Zoom to provide music

therapy sessions;

bereavement support group for

parents and carers via Zoom;

virtual remembering days for

bereaved families;

regular newsletters including

activities and details of local

resources and groups;

advice and support regarding

emotional and psychological wellbeing

for all members of the family.

A recent Family Survey has confirmed

that the hybrid model of hospice, home

and virtual care will continue to ensure

our families have choice and we are

responsive to individual needs.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 11


Strategic report

Income generation

For nearly thirty years, CHSW has

been there for families. On behalf of

every family, we want to say thank you

to everyone involved for making that

support a reality. Together we are making

the most of short and precious lives.

Without the tremendous support

of people right across the South

West (and beyond) we simply could

not be there for children and families

when they need it most.

Whether participating

in events, shopping

and donating in one

of our charity shops,

playing the Raise a

Smile Lottery or giving

a financial gift - every act

of kindness continues to

help children and families.

Through our fundraising and

trading activities this year,

together we have raised

£12.7m

Take a look at some of the highlights of our fundraising activities from the year:

£3.5m

received from those supporters who

chose to remember CHSW with a gift

in their will (up from £3.1m last year).

£490k

raised by participants of our

fundraising events this year including

through Rainbow Runs, Firewalks,

Santas on the Run and much more.

£786k

contributed to CHSW this year from over

14,000 players in our weekly lottery and

annual raffle have helped to raise a smile.

£2.8m

from individual giving which has

grown as people continued to

generously support our work,

increasing from £2.5m last year.

£3.8m

raised from supporters donating or

shopping in one of our 36 charity

shops across the South West.

5

new shops opened throughout

2019/20 in Thornbury,

Bradley Stoke, Shepton Mallet,

Ashburton and Okehampton.

Page 12 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Strategic report

We are eternally

grateful to the

whole team at

Children’s Hospice

South West and

everyone who

helps to raise

money for families

like ours.

£479k

received from charitable trusts and

foundations to fund specific projects,

ongoing care and support for families.

£883k

from businesses across the region

who have donated funds, taken part in

employee fundraising or partnered with

CHSW in so many different ways.

£258k

raised through the activities of

our fabulous Friends Groups.

A special thank you to our volunteers

They are the friendly faces in our shops, they

work tirelessly to support and stage local

fundraising activities, they host tours of our

hospice sites, they iron, clean, maintain our

beautiful gardens and so much more. Without

them, we don’t know what we’d do.

Time donated by the charity’s many volunteers

and Friends Group members is not recognised

in the accounts, as it cannot be reliably valued.

More than 900

volunteers have contributed

over 10,000 volunteer hours

each month in the last year.

2,018

new Facebook followers taking the

total to 17,855. Average monthly reach

increased to 184k (2018-19: 122k)

and average monthly engagement

increased to 14k (2018-19: 8k)

9,726

followers on Twitter, an increase

of 402 (2018-19: 9,306). Average

monthly reach was 153k and average

monthly engagement was 2,227

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 13


Strategic report

Financial review

Our financial performance

The consolidated financial statement

comprises the result of the charity

together with those of C H S W

Promotions Limited, a wholly owned

subsidiary, which donates it profits

to the charity.

The consolidated statement of financial

activities is set out on page 20.

Donations and legacies amounted

to £8,035,093 (2019: £7,336,675),

income raised from charitable activities

(statutory income sources) amounted to

£1,886,934 (2019: £1,685,991), trading

activities (including retail and lottery)

generated income of £4,660,895

(2019: £4,454,738), investment income

was £410,510 (2019: £361,427) and

other income £779,629 (2019: £1,396).

Total income for the year was

£15,773,061 (2019: £13,840,227).

Total expenditure for the year

amounted to £15,083,201 (2019:

£14,461,225). This resulted in an

operational surplus of £689,860 (2019:

deficit £620,998). Net gains/(losses)

on investments were (£1,038,118)

(2019: £247,493) and therefore

net (expenditure) for the year was

(£348,258) (2019: (£373,505)).

Consolidated in the above figures

C H S W Promotions limited, a trading

subsidiary, has a turnover which

amounted to £215,125 (2019: £187,713)

and a profit after taxation of £9,934

(2019: £62). The company will donate

this amount to the charity.

In March 2020, the financial effect

of the COVID-19 pandemic was first

felt by the charity with the closure of

all 36 CHSW shops together with the

cancellation of a number of voluntary

fundraising events organised by the

charity and supporters.

To mitigate the initial fall in income

due to the pandemic, in the financial

year the charity took advantage of the

Governments support in relation to the

Retail, Hospitality and Leisure grant

Where we received

our income

Community and corporate

£4,011,272 - 25%

Trusts

£478,693 - 3%

Legacies

£3,545,128 - 22%

Trading

£4,660,895 - 30%

Statutory

£1,886,934 - 12%

Investment income

£410,510 - 3%

Other

£779,629 - 5%

Total - £15,773,061

Investment

income

Statutory

Trading

Other

Community

and corporate

Trusts

Legacies

Page 14 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Strategic report

of £750,000 and Furlough schemes of

£27,000, both amounts are included

in other income within the accounts.

During February and March 2020,

investment markets across the globe

were significantly negatively affected

by the emerging pandemic and as a

result, CHSW’s loss on the investments

held by the charity for the financial

year amounted to £1,038,118.

The effect of the pandemic on voluntary

and trading income has continued into

the 2020/21 financial year. Whilst our

community and corporate incomes

are significantly behind previous years

levels, we are encouraged and grateful

that our trust, legacy, and individual

giving voluntary income remain strong

during the pandemic period.

We are also pleased to note that all our

shops have now reopened.

During the 2020/21 financial year, as

global markets have improved from their

low level at the end of March 2020, the

charity has seen a significant gain in the

value of investments held which are

currently now only slightly behind their

value prior to the pandemic.

Financial modelling of our income

for the 2020/21 financial year has

forecasted that our overall income is

expected to be £1.8m down on budgeted

levels. This reflects the expected fall

in voluntary and trading income offset

by further Government financial help

including specific hospice sector

support announced by the Chancellor

in April 2020. The Board have instigated

a strategic review of the organisation

to adapt and identify new opportunities

for the charity going forward in the

new pandemic environment. This

work will ensure that service levels can

be maintained and enhanced where

possible whilst identifying efficiency

savings across the organisation to help

reduce the possibility of operating

deficits in the coming years.

Raising funds

Little Bridge House

Where we spent

our income

Little Bridge House

£2,962,208 - 20%

Trading activities

Little Harbour

Charlton Farm

Charlton Farm

£3,668,073 - 24%

Little Harbour

£2,676,099 -18%

Trading activities

£3,646,703 - 24%

Raising funds

£2,130,118 - 14%

Total - £15,083,201

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 15


Strategic report

Our financial reserves

We recognise our commitment and moral

obligation to the children and families

who currently use our services will

extend many years into the future. It is

imperative, therefore, for us to maintain

unrestricted general funds at a level that

will ensure the continuity of the unique

service provided by the charity whilst

recognising that the charity is facing a

period of significant economic uncertainty

as a result of the ongoing pandemic.

In establishing the CHSW reserves

policy, we have taken direction from

the Charity Commission’s guidance

CC19 by using an integrated approach

for an organisation with complex

activities and structures. This involves

projecting cash flows over the next

five years and identifying key risks

associated in this period, with both

income and expenditure, whilst

also considering already committed

expenditure. From this work, it has been

found necessary for CHSW to maintain

a target range of reserves of between

£10.9m and £12.7m. This represents

between 8.6 and 10.1 months of

annual budgeted operating costs.

The charities unrestricted general

funds were at a level of £15,891,995

We feel incredibly lucky to be

under the protective wing of such

an amazing organisation.

as of 31 March 2020 (£15,919,709 as

of 31 March 2019).

We note that the group’s unrestricted

general funds are above their target

range of reserves. It is our intention

that, in the short to medium term, the

charity utilises these surplus funds to

help deal with the impact on the charity

of the COVID-19 pandemic and the

possibility and disruption from further

outbreaks. This will include investment

in maintaining and developing our

care services so that they can operate

in a pandemic restricted environment.

The surplus also helps to ensure the

longer term financial stability of

the charity recognising the significant

fall in voluntary and trading income

that is expected in the next two

years because of the social limitations

imposed by the pandemic.

Designated capital funds are £21,176,960

(2019: £21,397,904) and represent the

net book value of the unrestricted

tangible and intangible fixed assets

of the group.

Restricted funds are those to be used

in accordance with specific instructions

imposed by donors or which have been

raised by the charity for specific purposes.

At 31 March 2020, the balance of these

funds was £706,344 (2019: £708,854).

Details of these funds can be seen in note

18 of the financial statements.

An endowment fund is a fund retained

for the benefit of the charity as a capital

fund. The endowment fund included

in these accounts is an expendable

endowment, the income from which is

restricted to funding the post of Head

of Care at Charlton Farm at 31 March

2020. The balance of these funds was

£1,400,656 (2019: £1,476,221).

Despite the worldwide economic

challenges currently faced by all

organisations, we consider the charity

to be a going concern..

Our investment approach

The charity’s investment policy requires

the charity to invest funds in such a

manner that the risk profile reflects

planned expenditure and future plans.

In 2008, we appointed Cazenove

Capital Management Limited as our

agent to manage a diversified portfolio

of suitable investments. As the size

of our investments grew, in March

2015, Sarsains and Partners were then

additionally appointed.

In 2019, we secured the services of

an external independent investment

advisor to undertake an investment risk

profile review and to provide ongoing

expert assessment on the performance

of the appointed investment managers.

At the beginning of the 2020/21 financial

year, as part of good governance, a

formal retendering process in relation

to investment manager services was

undertaken which included a review

of investment performance and charges.

As a result of this work, Aberdeen

Standard Capital Limited were appointed,

alongside Sarasins and Partners, as CHSW

investment mangers going forward.

Under our investment policy, we

instruct the appointed investment

managers to avoid, if at all possible,

investments in funds where a

constituent of that fund has turnover

directly related to restricted categories

including tobacco, alcohol manufacture,

armaments, pornography and gambling.

A minimum performance requirement

for all invested funds is Consumer

Price Index (CPI) +3% and this target

is reviewed annually for suitability.

During 2019/20, these investment

performance objectives were met.

Page 16 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Strategic report

How we manage risks and uncertainties

We undertake a continual assessment

of the principal risks facing the

group and are satisfied that adequate

controls and procedures are in place

to mitigate these risks. The Risk,

Audit and Governance Assurance

Committee (RAG) is responsible for

overseeing the approach to risk across

the whole of the charity’s activities.

All risks identified are recorded on the

CHSW Risk Register. The risk is then

scored based on impact and likelihood

in line with the Charity Commission

guidance. Mitigation and controls are

applied with the aim of reducing

the risk (and the score) to an acceptable

level. The scores are prioritised on a

Red, Amber, Green rating and reported

to the Board through the CHSW

Risk Management Framework. The

Senior Management Team review the

Risk Register monthly and the Board

Assurance Committees review the

strategic risks relevant to them at their

scheduled meetings (at least three times

per year). The full Board carry out a full

review of strategic risks annually.

The key red risks identified are:

Pandemic: Risk to Operations.

COVID-19 has had a far greater impact

than anyone could have envisaged,

impacting every aspect of what we

do. CHSW immediately responded by

creating a COVID-19 Response Team,

made up of key personnel from across

the organisation, meeting weekly to

respond to the immediate operational

risks. The full Board met on 12 March

2020 and shortly following, the terms

of reference for a Crisis Assurance

Committee of Trustees was agreed.

This group now meets monthly and is

empowered to make swift decisions

whilst retaining appropriate governance.

Cost of existing and planned services

exceeds income (annual).

Financial modelling identified the need

to generate additional income in excess

of £2m per year over the next five years

to ensure income can cover operational

expenditure reflecting year on year

inflationary costs and the additional cost

associated with service development. This

has been overshadowed by the impact of

the pandemic on our retail and voluntary

income and response plans are now being

developed and implemented to reflect

the CHSW Strategic Review. This is

supported by the Finance, Investment and

Trading Assurance Committee (FIT).

The six main areas of risk identified by

the Board in January 2020 were:

failure to deliver charitable

objectives;

failure to manage safeguarding risks;

damage to reputation;

ineffective governance and leadership;

failure to manage compliance;

failure to manage financial risk.

After a call to the Children Hospice South West helpline, aka the

Care Team, we were able to get great support during lockdown

from members of the team who know our foster son well.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 17


Strategic report

What we achieved against our key objectives in 2019-20

Objective

Achievement

Care

To care for more sick children year on year Achieved: 580 (566 in 2018/19)

To achieve an occupancy of available beds of 75% Achieved: 81% (80% in 2018/19)

Exemplary standards of care, with the

Care Quality Commission (CQC) finding

no actions for improvement

The CQC did not inspect any of the hospices in

2019/20 but our Quality Account, which is

submitted to NHS England, demonstrates that the

quality of care provided continues to be excellent

Fundraising

Guaranteed/regular income (for example statutory,

net retail and lottery, committed giving and

investment income)covering 30% of total expenditure

excluding expenditure on trading activities

Cover costs plus achieve a surplus

before investment gains and losses

Reserves

To hold a target range of reserves by taking a

prudent approach to the identification of reasonable

uncertainties that CHSW may face in the future

Achieved: 31%

Total expenditure excluding expenditure

on trading activities: £11.4m

Guaranteed/regular income: £3.5m

Achieved: Operational surplus of £689,860

before investment gains and losses, but including

COVID-19 income of £777k.

Achieved: Actual level of unrestricted

general funds exceeds target range of

£10,906,388 to £12,711,546

Page 18 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Strategic report

ur plans for the future

Reflecting on the challenges that the COVID-19 pandemic has presented

to CHSW, we have reviewed our objectives for the next 12 months:

1 To develop and update the CHSW

care vision with a short/medium term

goal focussing on our new service

offer of: hospice, home and virtual.

2 To develop and implement our

Workplace Health, Safety and

Wellbeing Strategy in response to

the immediate COVID-19 pandemic

with forward vision to adapt to the

changing workplace environment.

3 To establish a new Fundraising

Strategy with a focus on

Individual Giving and a revised

approach to events.

4 To develop new retail and lottery

trading strategies in response to

high street challenges and the need

to grow lottery memberships with

limited face to face contact.

5 To develop a new marketing strategy

to increase donor acquisition and

retention, reach new audiences and

stand out in a new and potentially

crowded marketplace.

6 To develop a Digital Transformation

strategy to continue to

enhance our ways of working

across the organisation in an everchanging

digital world.

Included on pages 44-48 are the charities structure, governance and management, reference and administrative

detail and fundraising disclosures which also form part of this report.

Statement of Trustees’ responsibilities

The Trustees (who are also Directors

of CHSW for the purposes of company

law) are responsible for preparing the

Trustees’ Annual Report (including

the Strategic Report) and the financial

statements in accordance with applicable

law and United Kingdom Generally

Accepted Accounting Practice (United

Kingdom Accounting Standards).

Company law requires the Trustees to

prepare financial statements for each

financial year. Under company law the

Trustees must not approve the financial

statements unless they are satisfied

that they give a true and fair view of

the state of affairs of the charitable

company and the group and of the

incoming resources and application of

resources, including the income and

expenditure, of the charitable group 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 Statement of

Recommended Practice (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 charitable company will

continue in business.

The Trustees are responsible for

keeping adequate accounting records

that are sufficient to show and explain

the charitable company’s transactions,

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

and the provisions of the charity’s

constitution. They are also responsible

for safeguarding the assets of the charity

and the group and hence for taking

reasonable steps for the prevention and

detection of fraud and other irregularities.

Disclosure of Information to Auditors

Insofar as each of the Trustees of the

charity at the date of approval of this

report is aware, there is no relevant

audit information (information needed

by the charity’s auditor in connection

with preparing the audit report) of

which the charity’s auditor is unaware.

Each Trustee has taken all of the steps

that he/she should have taken as a

Trustee in order to make himself/herself

aware of any relevant audit information

and to establish that the charity’s

auditor is aware of that information.

Approval

This report, incorporating the strategic

report, was approved by the Board

of Trustees on 24 September 2020

and signed on its behalf:

Patricia Morris

Chair of Trustees

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 19


Financial statements

Consolidated statement of financial activities

(including income and expenditure account)

for the year ended 31 March 2020

Notes

Unrestricted

funds (£)

Restricted

funds (£)

Endowment

funds (£)

Total 2020

funds (£)

Total 2019

funds (£)

Income from: (note 29)

Donations and legacies 1 5,543,280 2,491,813 — 8,035,093 7,336,675

Charitable activities:

Statutory funding

4 999,303 887,631 — 1,886,934 1,685,991

Trading activities 3 4,660,895 — — 4,660,895 4,454,738

Investments 2 368,281 42,229 — 410,510 361,427

Other 5 779,629 — — 779,629 1,396

Total income 12,351,388 3,421,673 — 15,773,061 13,840,227

Expenditure on:

Trading activities 3 3,646,703 — — 3,646,703 3,331,279

Total income net of

trading expenditure

Expenditure on:

8,704,685 3,421,673 — 12,126,358 10,508,948

Raising funds 2,085,057 — — 2,085,057 2,067,657

Investment management fees 45,061 — — 45,061 36,310

Net income available for

charitable activities

Charitable activities:

6,574,567 3,421,673 — 9,996,240 8,404,981

Care of children and families 6 6,168,233 3,138,147 — 9,306,380 9,025,979

Total expenditure 6 11,945,054 3,138,147 — 15,083,201 14,461,225

Net income / (expenditure) before

(losses) /gains on investments

10 406,334 283,526 — 689,860 (620,998)

Net (losses) / gains on investments 13(b) (883,662) — (154,456) (1,038,118) 247,493

Net (expenditure)/income (477,328) 283,526 (154,456) (348,258) (373,505)

Transfer between funds 17, 18, 19 207,145 (286,036) 78,891 — —

Net movement in funds (270,183) (2,510) (75,565) (348,258) (373,505)

Reconciliation of funds:

Total funds brought forward 17, 18, 19 37,339,218 708,854 1,476,221 39,524,293 39,897,798

Total funds carried forward 17, 18, 19 37,069,035 706,344 1,400,656 39,176,035 39,524,293

The accounting policies starting on page 38 and the notes to the accounts starting on page 23 form part of these financial statements.

Page 20 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Consolidated and charity balance sheet

(Company number 02620879)

as at 31 March 2020

Fixed assets

Notes

Group

2020 (£)

Group

2019 (£)

Charity

2020 (£)

Charity

2019 (£)

Tangible assets 11 21,288,845 21,450,134 21,288,845 21,450,134

Intangible assets 12 268,115 327,770 268,115 327,770

Investments 13(a) 11,376,342 15,176,690 11,376,442 15,176,790

32,933,302 36,954,594 32,933,402 36,954,694

Current assets

Stock 14 31,825 19,730 — —

Debtors 15 3,481,309 1,168,267 3,513,403 1,198,991

Cash at bank and in hand 3,969,285 2,457,812 3,953,612 2,440,574

7,482,419 3,645,809 7,467,015 3,639,565

Creditors falling due within

one year

16 (1,239,686) (1,076,110) (1,234,516) (1,070,228)

Net current assets 6,242,733 2,569,699 6,232,499 2,569,337

Total net assets 39,176,035 39,524,293 39,165,901 39,524,031

Funds of the group and charity

Endowment fund 17 1,400,656 1,476,221 1,400,656 1,476,221

Restricted funds 18 706,344 708,854 706,344 708,854

Unrestricted designated funds 19 21,177,040 21,419,509 21,177,040 21,419,509

Unrestricted general fund 19 15,891,995 15,919,709 15,881,861 15,919,447

Total group and

charity funds

20 39,176,035 39,524,293 39,165,901 39,524,031

Of the net movement in funds for the year of £(348,258) (2018-19: £(373,505)), an amount of £(358,130)

(2018-19: £(371,548)) has been dealt with in the Statement of Financial Activities of the parent company.

The financial statements were approved and authorised for issue by the Board of Trustees on 24 September

2020 and signed on its behalf:

Patricia Morris

Chair of Trustees

The accounting policies starting on page 38 and the notes to the accounts starting on page 23 form

part of these financial statements.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 21


Financial statements

Consolidated cash flow statement

for the year ended 31 March 2020

Notes

Total

2020 (£)

Total

2019 (£)

Cash (used on) / provided by operating activities 28(a) (750,495) 239,763

Cash flows from investing activities

Deposit interest received 13,185 11,173

Investment income received 145,344 111,770

Rental income received 3,566 9,419

Cash flows from investing activities 162,095 132,362

Capital expenditure and financial investment

Purchases of tangible and intangible fixed assets:

Little Bridge House (10,164) (3,475)

Charlton Farm (39,851) (1,194)

Other assets (860,757) (290,340)

Purchases of tangible and intangible fixed assets (910,772) (295,009)

Proceeds from sales of tangible fixed assets — 146

Fixed asset investments:

Payments (44,942) —

Receipts — 36,872

Transfer from cash held on deposit 3,055,587 —

Fixed asset investments: 3,010,645 36,872

Capital expenditure and financial investment 2,099,873 (257,991)

Net cash provided by /(used in) investing activities 2,261,968 (125,629)

Change in cash and cash equivalents in the reporting period 28(b) 1,511,473 114,134

Cash and cash equivalent at the beginning of the year 2,457,812 2,343,678

Total cash and cash equivalent at the end of the year 3,969,285 2,457,812

Page 22 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Financial statements

Notes to the financial statements

for the year ended 31 March 2020

1 Donations and legacies

CHSW receives donations from a number of diverse sources as shown below:

Total 2020 (£) Total 2019 (£)

Individuals 2,799,369 2,523,031

Friends Group fundraising 258,244 497,848

Legacies 3,545,128 3,068,376

Grants and donations from charitable trusts 478,693 341,370

Other voluntary income 953,659 906,050

8,035,093 7,336,675

2 Investment income

Total 2020 (£) Total 2019 (£)

Income from listed investments:

UK 259,601 213,621

Overseas 40,707 36,550

Multi-asset funds 85,380 84,097

Income from cash deposits 21,256 17,740

Rental income 3,566 9,419

410,510 361,427

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 23


Financial statements

3 Income and expenditure from trading activities

Total trading income comprises: Total 2020 (£) Total 2019 (£)

C H S W Promotions Limited 215,125 187,713

Lottery and raffles 785,629 801,881

Donations relating to the sale of goods where the shops acted as agent 991,602 883,434

Gift Aid received on donations where the shops acted as agent 245,814 220,858

Shops turnover 2,422,725 2,360,852

Total 4,660,895 4,454,738

Total trading expenditure comprises: Total 2020 (£) Total 2019 (£)

C H S W Promotions Limited 205,190 187,651

Lottery and raffles 212,594 173,968

Shops (all associated costs

including depreciation)

3,228,919 2,969,660

Total 3,646,703 3,331,279

The principal activity of the charity’s wholly owned subsidiary, C H S W Promotions Limited (company

number 02645823) is the sale of bought-in goods, including Christmas cards, through the charity

shops of the parent charity and through its network of Friends Groups and by mail order.

The income and expenditure of C H S W Promotions Limited are disclosed as ‘trading’ income and

expenditure in the consolidated statement of financial activities on page 20.

C H S W Promotions Limited Total 2020 (£) Total 2019 (£)

Turnover 215,125 187,713

Total expenditure (205,191) (187,651)

Operating profit and profit before tax 9,934 62

Taxation — —

Profit after taxation 9,934 62

Retained earnings at the beginning of the year 262 2,219

Distribution of retained earnings as gift aid donation to parent (62) (2,019)

Retained earnings at the end of the year 10,134 262

Assets 47,936 51,287

Liabilities (37,702) (50,925)

Net assets 10,234 362

Gift Aid payable to CHSW 9,934 62

Page 24 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Financial statements

4 Income from charitable activities

Total 2020 (£) Total 2019 (£)

Funding from regional CCGs 999,303 878,224

NHS England Children's Hospice grant 832,007 762,673

NHS England Superannuation grant 33,800 33,800

NHS England Health education placements 21,824 11,294

Total income from charitable activities 1,886,934 1,685,991

CHSW acknowledges the award of grants for Little Bridge House, Charlton Farm and Little Harbour

from the NHS England Children’s Hospice grant. The project undertakes to sustain and develop existing

high quality hospice care for palliative care children, their siblings and parents. It promotes education

and learning needs of all those working in the sector in a responsive and flexible way. The funding and

associated expenditure have been treated as movements in restricted funds.

In 2010, the charity succeeded in establishing contractual arrangements with the six CCGs whose areas the

charity covers. These arrangements were constructed at the behest of government. A price per bed night

has been agreed and it has also been agreed the volume of bed nights each CCG will purchase. There are no

unfulfilled conditions in respect of these contractual arrangements.

5 Government grants

Included within other income were two COVID-19 related government grants recognised in the

year ended 31 March 2020:

Total 2020 (£) Total 2019 (£)

Coronavirus Job Retention Scheme 27,000 —

Retail, Hospitality and Leisure Grant Fund 750,000 —

777,000 —

6 Total expenditure

Staff

costs

Direct

costs

Support

costs

Total

2020 (£)

Total

2019 (£)

(note 8) (note 7)

Costs of raising funds 3,428,055 2,348,766 — 5,776,821 5,435,246

Care of children and families 6,868,827 1,713,939 723,614 9,306,380 9,025,979

10,296,882 4,062,705 723,614 15,083,201 14,461,225

Governance costs of £35,497 are included within support costs and comprise the costs of running the

charity. This includes insurance £1,082, external audit £13,167, consultancy fees and legal advice for the

Trustees £18,259 and all costs of complying with constitutional and statutory requirements such as the

costs of Board and Committee meetings £2,989.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 25


Financial statements

7 Support costs

Support costs reallocated to the expenditure

category of care are as follows:

Total 2020 (£) Total 2019 (£)

Communications and IT 527,220 559,122

Human resources 367,737 361,233

Governance 35,497 48,110

Finance 388,909 346,725

Head office support 296,304 266,378

Total support costs 1,615,667 1,581,568

Less: staff costs (892,053) (903,088)

723,614 678,480

8 Employee information

Staff costs: Total 2020 (£) Total 2019 (£)

Salaries and wages 8,814,983 8,359,993

Social security costs 723,080 685,906

Pension costs 758,819 694,428

10,296,882 9,740,327

The average number of persons employed

by the charity during the year was:

FTE

Total

2020

FTE

Total

2019

Hospice services 145 185 143 181

Fundraising and publicity 50 62 51 60

Trading 73 106 66 95

Management and finance 20 24 21 24

288 377 281 360

Two employees earned between £60,000 and £70,000 per annum in the year (2018-19: two). Two

employees earned between £70,000 and £80,000 per annum in the year (2018-19: four). Two employees

earned between £80,000 and £90,000 per annum in the year (2018-19: None). One employee earned

between £100,000 and £110,000 per annum in the year (2018-19: one).

Retirement benefits accrue under a defined benefit scheme for three (2018-19: three) of these higher

paid employees. In addition, the charity paid £32,139 (2018-19: £29,996) into a defined contribution

pension scheme for four (2018-19: four) of these higher paid employees. Salaries and wages include

contributions in respect of salary exchange agreements in addition to contractual salary.

Following advice from the Government Actuary’s Department as part of the 2016 NHS pension scheme

valuation process, the Department of Health and Social Care (DHSC) confirmed the employer contribution

rate will increase to 20.68% with effect from 1 April 2019. The government has committed to cover this

cost increase for a certain category of employer’s, including CHSW, recurring annually until 31 March 2021.

All Trustees and certain senior employees who have authority and responsibility for planning, directing and

controlling the activities of the Charity are considered to be key management personnel. Total employment

costs (including social security and pension contributions) in respect of senior employees is £554,988

(2018-19: £529,532). As stated in note 9, there is no cost of employment in respect of the Trustees.

Page 26 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Financial statements

Financial statements

During the year, redundancy and settlement payments were made totalling £10,885 (2018-19: £18,493).

At 31 March 2020, the payments outstanding were £nil (2018-19: £3,150).

9 Trustees remuneration and other related party transactions

None of the Trustees received emoluments or benefits in kind during the year in respect of their duties as a

Trustee (2018-19: nil). Six of the Trustees received reimbursement of expenses in the year of £2,602 (2018-

19: four Trustees £1,004) for travel. During the year the charity recharged expenses of £101,667 (2018-

19: £107,424) to C H S W Promotions Limited and remittances were £114,179 (2018-19: £91,509). The

amount due from C H S W Promotions at the year end was £32,532 (2018-19: £45,044) which is included in

debtors. Included within this debtor is management recharges of £101,667 (2018-19: £89,520).

10 Net (expenditure) / income for the year

The net (expenditure) / income is stated after charging:

Total 2020 (£) Total 2019 (£)

Depreciation and amortisation of owned tangible

and intangible fixed assets

1,131,716 1,102,457

Loss/(profit) on disposal of fixed assets — 8,126

Operating lease rentals 786,604 731,866

Auditor's remuneration - audit fees 15,679 18,087

- other fees 5,803 787

11 Tangible fixed assets - charity and group

Freehold

land and

properties

(£)

Leasehold

property

(£)

Motor

vehicles

(£)

Office

furniture /

equipment

(£)

Fittings

and other

equipment

(£)

Total

(£)

Cost:

At 1 April 2019 21,626,144 587,109 266,347 957,637 2,581,338 26,018,575

Additions 50,015 59,736 17,128 212,847 495,462 835,188

Disposals - (361) — (85,483) (23,243) (109,087)

At 31 March 2020 21,676,159 646,484 283,475 1,085,001 3,053,557 26,744,676

Depreciation:

At 1 April 2019 1,694,696 214,056 209,366 682,978 1,767,345 4,568,441

Charged in

the year

463,057 91,415 27,305 158,309 256,391 996,477

Disposals — (361) — (85,483) (23,243) (109,087)

At 31 March 2020 2,157,753 305,110 236,671 755,804 2,000,493 5,455,831

Net book value:

At 31 March 2020 19,518,406 341,374 46,804 329,197 1,053,064 21,288,845

At 31 March 2019 19,931,448 373,053 56,981 274,659 813,993 21,450,134

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 27


Financial statements

11a Freehold land and properties - charity and group

Little Bridge House

(£)

Charlton Farm

(£)

Little Harbour

(£)

Total

(£)

Cost:

At 1 April 2019 3,470,288 12,440,550 5,715,306 21,626,144

Additions 10,164 39,851 — 50,015

At 31 March 2020 3,480,452 12,480,401 5,715,306 21,676,159

Depreciation:

At 1 April 2019 930,851 534,868 228,977 1,694,696

Charged in the year 101,544 267,086 94,427 463,057

At 31 March 2020 1,032,395 801,954 323,404 2,157,753

Net book value:

At 31 March 2020 2,448,057 11,678,447 5,391,902 19,518,406

At 31 March 2019 2,539,437 11,905,682 5,486,329 19,931,448

Included in the above is land totalling £2,947,681 which is not depreciated.

12 Intangible fixed assets - charity and group

Computer Software (£)

Cost:

At 1 April 2019 701,782

Additions 75,584

Disposals (20,283)

At 31 March 2020 757,083

Amortisation:

At 1 April 2019 374,012

Charged in the year 135,239

Disposals (20,283)

At 31 March 2020 488,968

Net book value:

At 31 March 2020 268,115

At 31 March 2019 327,770

Page 28 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Financial statements

13(a) Investments

Listed investments:

Group 2020

(£)

Group 2019

(£)

Charity 2020

(£)

Charity 2019

(£)

UK equities and bonds at cost 4,184,520 4,332,505 4,184,520 4,332,505

Overseas equities and bonds at cost 2,426,687 1,733,749 2,426,687 1,733,749

Multi-fund assets at cost 2,625,590 2,713,625 2,625,590 2,713,625

Other assets at cost 1,585,058 1,595,820 1,585,058 1,595,820

Cumulative net gains on revaluation

at period end

274,890 1,350,101 274,890 1,350,101

Market value at period end [Note 13(b)] 11,096,745 11,725,800 11,096,745 11,725,800

Cash held as part of

investment portfolios

193,597 317,376 193,597 317,376

11,290,342 12,043,176 11,290,342 12,043,176

Other investments:

Donated land held for

investment purposes

86,000 86,000 86,000 86,000

Cash held on deposit — 3,047,514 — 3,047,514

Investment in C H S W Promotions Limited

Shares at cost — — 100 100

11,376,342 15,176,690 11,376,442 15,176,790

The charity’s investment portfolio was managed by Cazenove Capital Management and Sarasin &

Partners throughout the period. Investments are held in a diverse portfolio of funds, managed by

Sarasin, Cazenove and other fund managers, and in Government stocks. The only holdings in excess

of 5% of total investments were Sarasin Endowments Fund (16.2%), Cazenove’s Charities Equity

Income Fund (6.9%) and Schroder Sterling Corporate Bond (7.2%).

C H S W Promotions Limited is a wholly owned subsidiary which is registered in England and Wales and

whose principal activity is the sale of bought-in goods for the benefit of CHSW. The shares are Ordinary

Shares of £1 each and are shown at cost. The company pays its taxable profits to the charity under Gift Aid.

13(b) Listed investments market value - charity and group

Listed investments: Total 2020 (£) Total 2019 (£)

Market value at 1 April 11,725,800 11,348,415

Additions at cost 2,108,989 996,220

Sales proceeds (1,698,070) (866,170)

Equalisations (1,856) (158)

Net (losses)/gains (1,038,118) 247,493

At 31 March 11,096,745 11,725,800

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 29


Financial statements

14 Stock

Listed investments:

Group 2020

(£)

Group 2019

(£)

Charity 2020

(£)

Charity 2019

(£)

Stock for resale 31,825 19,730 — —

15 Debtors

Group 2020

(£)

Group 2019

(£)

Charity 2020

(£)

Charity 2019

(£)

Amounts owed by group undertakings — — 32,532 45,044

Legacies receivable 1,388,810 326,783 1,388,810 326,783

Other debtors including tax recoverable 1,605,830 447,957 1,605,392 433,637

Prepayment and accrued interest 486,669 393,527 486,669 393,527

3,481,309 1,168,267 3,513,403 1,198,991

16 Creditors

Group 2020

(£)

Group 2019

(£)

Charity 2020

(£)

Charity 2019

(£)

Trade creditors 222,603 255,932 222,603 254,966

Taxation and social security 180,552 174,824 180,552 174,824

Sundry creditors 184,769 333,618 184,769 333,602

Accruals and deferred income 651,762 311,736 646,592 306,836

1,239,686 1,076,110 1,234,516 1,070,228

Deferred income of £387,505 arose in the year and £209,125 brought forward from 2018-19 was released.

Deferred income includes income relating to registrations and sponsorship for upcoming events £296,185

(18/19: £128,775) and lottery subscriptions for future draws £91,320 (18/19: £80,349).

17 Endowment funds - charity and group

1 April 2019

(£)

Income

(£)

Expenditure

(£)

Gains /

(losses)

(£)

Transfers

(£)

31 March

2020

(£)

Endowment 1,476,221 — — (154,456) 78,891 1,400,656

1 April 2018

(£)

Income

(£)

Expenditure

(£)

Gains /

(losses)

(£)

Transfers

(£)

31 March

2019

(£)

Endowment 1,447,335 — — 28,886 — 1,476,221

Page 30 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Financial statements

During 2007, the charity received an expendable endowment of £1 million, the income from which is

restricted. This income is intended to fund care staff costs at Charlton Farm and, in particular, the post

of Head of Care. Income in 2019-20 is £42,229 (2019-20: £39,492) and is included in restricted funds

income on the Statement of Financial Activities.

The loss on investments in 2019-20 is £154,456 (2018-19: gain £28,886).

During the year ended 31 March 2020, £78,891 of other funds previously restricted to Charlton Farm

were transferred to the endowment fund with the consent of the donors.

18 Restricted funds - charity and group

1 April 2019

(£)

Income

(£)

Expenditure

(£)

Transfer

between

funds (£)

31 March 2020

(£)

Little Harbour capital 380,000 — — — 380,000

380,000 — — — 380,000

NHS England grants — 832,007 (832,007) — —

Little Bridge House funds 61,187 558,798 (488,674) (73,548) 57,763

Charlton Farm funds 208,833 1,436,607 (1,285,276) (171,868) 188,296

Little Harbour funds 50,537 548,317 (514,163) (35,824) 48,867

CHSW funds 8,297 45,944 (18,027) (4,796) 31,418

708,854 3,421,673 (3,138,147) (286,036) 706,344

1 April 2018

(£)

Income

(£)

Expenditure

(£)

Transfer

between

funds (£)

31 March 2019

(£)

Little Harbour capital 380,000 — — 0 380,000

380,000 — — — 380,000

NHS England grants — 807,639 (807,639) — —

Little Bridge House funds 41,243 484,264 (415,443) (48,877) 61,187

Charlton Farm funds 117,680 300,054 (183,594) (25,307) 208,833

Little Harbour funds 50,551 611,956 (598,953) (13,017) 50,537

CHSW funds 22,607 17,720 (32,030) — 8,297

612,081 2,221,633 (2,037,659) (87,201) 708,854

The NHS England grant is the NHS England ‘Children’s Hospice grant’ which was given to sustain and

develop the existing high quality hospice care for palliative care children, their siblings and parents.

The Little Bridge House, Charlton Farm, Little Harbour and CHSW funds include donations towards

specific projects at each hospice and across the whole charity respectively, including music therapy,

equipment, rooms and gardens, parties and presents, play equipment and materials, salary and other

revenue costs, and funding of mums and dads groups.

Other legacies and donations are restricted to be spent at a specific hospice. Seven restricted legacies

recognised in the year were over £50,000, of which a total of £1,087,333 was donated for Charlton

Farm, £137,000 was donated for Little Harbour and £312,000 was for Little Bridge House.

Transfers between funds represent the amounts spent on capital assets from revenue funds. Only

assets with a continuing restriction are maintained as restricted funds.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 31


Financial statements

19 Unrestricted funds

2019-20 group

1 April

2019 (£)

Income

(£)

Expenditure

(£)

Investment

(losses) /

gains (£)

Transfer

between

funds (£)

31 March

2020 (£)

Designated capital funds 21,397,904 — (1,131,716) — 910,772 21,176,960

Jill Farwell's Memorial fund 21,605 — (21,525) — — 80

Total designated funds 21,419,509 — (1,153,241) — 910,772 21,177,040

Unrestricted general funds 15,919,709 12,351,388 (10,791,813) (883,662) (703,627) 15,891,995

Total unrestricted funds 37,339,218 12,351,388 (11,945,054) (883,662) 207,145 37,069,035

2019-20 charity

1 April

2019 (£)

Income

(£)

Expenditure

(£)

Investment

(losses) /

gains (£)

Transfer

between

funds (£)

31 March

2020 (£)

Designated capital funds 21,397,904 — (1,131,716) — 910,772 21,176,960

Jill Farwell's Memorial fund 21,605 — (21,525) — — 80

Total designated funds 21,419,509 — (1,153,241) — 910,772 21,177,040

Unrestricted general funds 15,919,447 12,238,003 (10,688,300) (883,662) (703,627) 15,881,861

Total unrestricted funds 37,338,956 12,238,003 (11,841,541) (883,662) 207,145 37,058,901

2018-19 group

1 April

2018 (£)

Income

(£)

Expenditure

(£)

Investment

(losses) /

gains (£)

Transfer

between

funds (£)

31 March

2019 (£)

Designated capital funds 22,213,623 — (1,110,728) — 295,009 21,397,904

Jill Farwell's Memorial fund 43,99 5 — (22,390) — — 21,605

Care and Development fund 1,365,127 — — — (1,365,127) —

Total designated funds 23,622,745 — (1,133,118) — (1,070,118) 21,419,509

Unrestricted general funds 14,215,637 11,618,594 (11,290,448) 218,607 1,157,319 15,919,709

Total unrestricted funds 37,838,382 11,618,594 (12,423,566) 2 18,607 87,201 37,339,218

2018-19 charity

1 April

2018 (£)

Income

(£)

Expenditure

(£)

Investment

(losses) /

gains (£)

Transfer

between

funds (£)

31 March

2019 (£)

Designated capital funds 22,213,623 — (1,110,728) — 295,009 21,397,904

Jill Farwell's Memorial fund 43,995 — (22,390) — — 21,605

Care and Development fund 1,365,127 — — — (1,365,127) —

Total designated funds 23,622,745 — (1,133,118) — (1,070,118) 21,419,509

Unrestricted general funds 14,213,418 11,620,613 (11,290,510) 218,607 1,157,319 15,919,447

Total unrestricted funds 37,836,163 11,620,613 (12,423,628) 218,607 87,201 37,338,956

The Trustees have established designated capital funds which are equivalent to the net book value of unrestricted tangible

and intangible fixed assets used to enable CHSW to carry out its charitable work. Of the net transfers between funds,

£286,036 represent transfers from restricted funds, being the amounts spent on capital assets where the restrictions on the

donations for assets have been fulfilled. In the year £736,621 was spent on fixed assets from general unrestricted funds

and was transferred to designated capital funds. In addition, £78,891 was transferred from the Charton Farm restricted fund

to the Endowment fund (note 17) in line with the donors wishes.

Jill Farwell’s Memorial Fund was established by donations to remember Jill’s death in September 2004. The Trustees, together

Page 32 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Financial statements

with Eddie Farwell, decided that the funds will be used to provide ongoing music therapy.

The group maintain unrestricted general funds with the primary aim of reducing the dependency of

the charity on any of its income streams as they develop in the future and to specifically fund essential

projects to improve the service of the organisation.

20 Analysis of fund balances between net assets - group

As at 31 March 2020

Unrestricted

(£)

Restricted

(£)

Endowment

(£)

Total

(£)

Fixed assets 21,176,960 380,000 — 21,556,960

Investments 9,975,686 — 1,400,656 11,376,342

Net current assets 5,916,389 326,344 — 6,242,733

37,069,035 706,344 1,400,656 39,176,035

As at 31 March 2019

Unrestricted

(£)

Restricted

(£)

Endowment

(£)

Total

(£)

Fixed assets 21,397,904 380,000 — 21,777,904

Investments 13,700,469 — 1,476,221 15,176,690

Net current assets 2,240,845 328,854 — 2,569,699

37,339,218 708,854 1,476,221 39,524,293

21 Status of the charitable company

The charity is a company limited by guarantee, having no share capital. The liability of each member,

in the event of winding-up, is limited to £1.

22 Operating lease commitments

The total commitment under operating leases from premises is as follows

Payments falling due: Total 2020 (£) Total 2019 (£)

Within one year 785,501 703,059

Between two and five years 2,100,100 2,235,299

In more than five years 994,616 923,202

The total commitment under operating leases for other assets is as follows

Payments falling due: Total 2020 (£) Total 2019 (£)

Within one year 19,973 41,135

Between two and five years 5,796 26,749

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 33


Financial statements

23 Pension commitments

CHSW employees belonged to two principal pension schemes during the year. The NHS pension

scheme for eligible staff is a defined benefit scheme. Non eligible members of staff are offered a

defined contribution scheme administered by Scottish Widows.

NHS scheme

Only ex-NHS qualified doctors and nurses are eligible to join the NHS scheme. The NHS scheme is a

multi-employer defined benefit pension scheme. As the charity is unable to identify its share of the

assets and liabilities of the scheme on a consistent and reliable basis, the scheme is treated by the

charity as if it were a defined contribution scheme, in accordance with FRS 102 ‘Retirement benefits’.

Total pension contributions and liabilities

The total pension costs charged in the year represent the charity’s contributions to all the schemes and

amounted to £758,819 (2018-19 : £694,428). The charity’s contributions outstanding at 31 March 2020

were £63,996 (2019 : £58,714). The assets and liabilities of both schemes are held separately from those

of the charity, in independently administered pension schemes.

24 Capital commitments

At the balance sheet date, the Charity had capital commitments totalling £43,528 (2018-19: £nil).

25 Indemnities

Legacies

The charity has indemnified the executors of three estates in respect of residuary legacies distributed

to the charity. The maximum liability under the indemnities at the date the accounts were approved

is £27,437 (2018-19: £27,437).

Solicitors’ unclaimed client funds

Following the passing of relevant legislation, solicitors are now permitted to distribute to charities

certain unclaimed client funds, however an indemnity is required from those charities to indefinitely

commit to refund any funds that are subsequently claimed. The total of the charity’s indemnities is

£104,919 (2018-19: £97,537).

26 Contingent assets - legacies

As at 31 March 2020, the charity had been notified of a number of residuary legacies, the values

of which were uncertain, as the executors were awaiting confirmation of other claims on the estate

and may also be in the process of realising assets such as residential property. The estimated total of

these legacies could be up to £1.6m.

None of these legacies have been accrued in the financial statements.

Page 34 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Financial statements

27 Events after the balance sheet

In July 2020, the decision was taken to exercise the break clause on the office premises at Chinon Court

in Tiverton, at that point all fixtures and fittings associated with the lease were written down in full.

28 Note to the cash flow statement

28(a) Reconciliation of net movement in funds to

the net cash flow from operating activities

Total 2020 (£) Total 2019 (£)

Net movement in funds (348,258) (373,505)

Add back: depreciation and amortisation charges 1,131,716 1,102,457

Add back: gains / (losses) on investments 1,038,118 (247,493)

Deduct: investment income and deposit interest (410,510) (361,427)

Loss / (profit) on disposal of fixed assets — 8,126

(Increase) in stocks (12,095) (1,539)

(Increase) / decrease in debtors (2,313,042) 18,646

Increase in creditors 163,576 94,498

Net cash (used in) / provided by operating activities (750,495) 239,763

28(b) Analysis of changes in net cash resources

Total 2019 (£) Cash flow (£) Total 2020 (£)

Net movement in funds 2,457,812 1,511,473 3,969,285

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 35


Financial statements

29. Prior year SOFA

Income from:

Notes

Unrestricted

funds (£)

Restricted

funds (£)

Endowment

funds (£)

Total 2019

funds (£)

Donations and legacies 1 5,962,173 1,374,502 — 7,336,675

Charitable activities:

statutory funding

4 878,352 807,639 — 1,685,991

Trading activities 3 4,454,738 — 4,454,738

Investments 2 321,935 39,492 — 361,427

Other 1,396 — — 1,396

Total income 11,618,594 2,221,633 — 13,840,227

Expenditure on:

Trading activities 3 3,331,279 — — 3,331,279

Total income net of

trading expenditure

Expenditure on:

8,287,315 2,221,633 — 10,508,948

Raising funds 6 2,067,657 — — 2,067,657

Investment management fees 6 36,310 — — 36,310

Net income available for

charitable activities

Charitable activities:

6,183,348 2,221,633 — 8,404,981

Care of children and families 6 6,988,320 2,037,659 — 9,025,979

Total expenditure 6 12,423,566 2,037,659 — 14,461,225

Net income / (expenditure) before

(losses) /gains on investments

10 (804,972) 183,974 — (620,998)

Net (losses) / gains on investments 13(b) 218,607 — 28,886 247,493

Net income (586,365) 183,974 28,886 (373,505)

Transfer between funds 18 87,201 (87,201) — —

Net movement in funds (499,164) 96,773 28,886 (373,505)

Reconciliation of funds:

Total funds brought forward 20 37,838,382 612,081 1,447,335 39,897,798

Total funds carried forward 20 37,339,218 708,854 1,476,221 39,524,293

Page 36 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Financial statements

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 37


Accounting policies

Basis of preparation and accounting policies

CHSW is a registered charity with the Charity Commission England and Wales (charity number 1003314) and was incorporated

as a private company limited by guarantee (company number 02620879). Its registered office is Little Bridge House, Redlands

Road, Fremington, Barnstaple, Devon EX31 2PZ. This is also the registered address of the subsidiary.

The following accounting policies have been applied consistently in dealing with items that are considered material in

relation to the financial statements:

(a) Basis of preparation of accounts

The financial statements have been prepared in accordance

with Accounting and Reporting by Charities: Statement of

Recommended Practice applicable to charities preparing their

accounts in accordance with the Financial Reporting Standard

applicable in the UK and Republic of Ireland (FRS 102) (effective

1 January 2015) (Charities SORP (FRS 102)), the Financial

Reporting Standard applicable in the UK and Republic of Ireland

(FRS 102), the Companies Act 2006 and Charities Act 2011.

CHSW meets the definition of a public benefit entity

under FRS 102.

These financial statements consolidate the results of the

charity and its wholly owned subsidiary, C H S W Promotions

Limited, on a line by line basis. All intergroup transactions

are eliminated on consolidation.

A separate statement of financial activities and income

and expenditure account for the charity has not been

presented because the charity has taken advantage of

the exemption afforded by section 408 of the Companies

Act 2006. The charity has taken advantage of the exemptions

in FRS 102 from the requirements to present a charity

only cash flow statement and certain disclosures about

the charity’s financial instruments.

(b) Going concern

and use of each restricted fund is set out in the notes to

the accounts where material.

The endowment fund is to be retained for the benefit of the

charity as a capital fund. The income generated from the capital

is restricted due to the wishes of the donor. The endowment

fund included in these accounts is an expendable endowment.

Unrestricted funds are available for use at the discretion of the

Trustees in furtherance of the general objectives of the charity.

The Trustees have designated certain unrestricted funds

as capital funds, representing the net book value of the

unrestricted fixed assets used to enable CHSW to carry

out its charitable work. They have also decided that the Jill

Farwell Fund will be used to provide ongoing music therapy.

(d) Income

Income is recognised when the charity has entitlement to the

funds, any performance conditions attached to the income

have been met, it is probable that the income will be received

and the amount can be measured reliably.

Income from voluntary sources is received by way of

donations and gifts and is included in full in the Statement

of Financial Activities when receivable.

Income from gift aid tax reclaims is recognised for all donations

The group has cash resources and no requirement for

external funding to fund normal operating activities. The

Trustees believe that there are no material uncertainties

about the group’s ability to continue in operating existence

for the foreseeable future, having reviewed our financial

position, reserves levels and future plans. In forming these

conclusions, the Trustees have considered the ongoing

financial impact of the COVID-19 pandemic. They continue

to believe the going concern basis of accounting appropriate

in preparing the annual financial statements.

(c) Fund accounting

Restricted funds are those to be used in accordance with

specific instructions imposed by donors or which have

been raised by the charity for specific purposes. The aim


The support and care

we receive from

Children’s Hospice

South West is fantastic

and we are so grateful

to be able to enjoy

time as a family, with a

chance to rest and be

‘Mum’ and ‘Dad’ again.

Page 38 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


made prior to the year end, where valid gift aid declarations are

held, and allocated to the same fund as the underlying donation.

Donated services and facilities

Properties, investments, and other fixed assets donated to

the charity are included as income and recognised as assets at

market value at the time that the charity takes control of the

item. Donated services and facilities are included as income, if

material, at their estimated value to the charity when received,

and under the appropriate expenditure heading depending

on the nature of service provided, at the same value and

time. Although it is of significant value to the charity, time

donated by the charity’s many volunteers and Friends Group

members is not recognised in the accounts as it cannot be

reliably valued and is specifically exempted by the SORP.

Details of the role played by volunteers and the nature of their

contribution can be found in the Trustees’ report.

Stocks of donated goods for resale cannot be measured

reliably in a cost-effective manner, due to the high volume

of low value items received. Therefore donated goods

for resale are not recognised on receipt, but their value is

recognised as income when sold.

Legacy income

Legacies are recognised when the charity is entitled to the

funds (when there is a valid will and they are notified of the

benefactors death), when receipt is probable (indicated by

grant of probate) and the charity can reliably estimate the

legacy income receivable.

Recognition is therefore dependent upon the type of legacy.

Pecuniary Legacies are recognised when notification is

received and probate has been granted.

Residuary legacies are recognised when notification is

received, probate has been granted and a reliable

estimate of the fair value can be made (the executors

have compiled draft accounts).

Discretionary/conditional legacies are not recognised

until a distribution has been made or all conditions

have been satisfied.

Where legacies have been notified to the charity but the criteria

for income recognition have not been met the legacy is treated

as a contingent asset and disclosed if material (note 26).

Income received in advance

Income received in advance of an event or provision of

other specific service, is deferred until the criteria for

income recognition are met.

Interest received

Interest on funds held on deposit is included when receivable.

Investment income

Investment income is credited to income on an accruals basis.

Grants (including Government grants)

Grants received for specific purposes are accounted for

as restricted funds. Grants that provide core funding or are

of a general nature provided by charitable foundations are

recorded as donations. The grants detailed in note 4

have been included as income from charitable activities

as they relate to the provision of care services. Grants are

recognised in full when entitlement is established.

(e) Expenditure

Expenditure is accounted for on an accruals basis and is

recognised once there is a legal or constructive obligation

to make a payment to a third party, it is probable that

settlement will be required and the amount of the obligation

can be measured reliably. Expenditure has been classified

under the following activity headings.

The costs of raising funds are those incurred in encouraging

individuals and organisations to make voluntary

contributions and donations to the charity. This includes

the costs of the charity’s fundraising offices and supporter

groups, the cost of trading and investment management fees.

Charitable expenditure comprises direct expenditure

including direct staff costs attributable to its care

activities and support costs.

The treatment of VAT is detailed in (h) below.

Support costs include central functions and are allocated to

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 39


Accounting policies

activity cost categorised on a basis consistent with the use

of resources. This allocation is carried out on a substantive

activity basis and does not take account of incidental use.

Governance costs are included within support costs and

comprise the costs of running the charity. This includes

external audit, any legal advice for the Trustees and all costs

of complying with constitutional and statutory requirements

such as the costs of Board and Committee meetings.

(f) Operating leases

Rentals applicable to operating leases, where substantially

all the risks and rewards of ownership remain with the lessor,

are charged in the statement of financial activities over

the life of the lease on a straight line basis. They include retail

shops, central offices, vehicles and photocopiers.

(g) Pension costs

The charity contributed to one defined benefit scheme in

the year, but also operates a defined contribution pension

scheme. Pension costs charged to the statement of

financial activities represent the contributions payable

by the charity in respect of the accounting period.

Both schemes are accounted for as defined contribution

schemes. Note 23 provides a detailed explanation.

(h) Taxation

The charity is exempt from Corporation Tax on its

charitable activities.

The charity is registered for Value Added Tax. Irrecoverable

VAT is allocated to the areas in which it is incurred.

(i) Tangible and intangible fixed assets

Tangible and intangible fixed assets are depreciated and

amortised in equal annual instalments, using the straight

line basis, over their estimated useful lives, as follows:

Little Bridge House, Charlton Farm

and Little Harbour

Other freehold buildings

Leasehold property

Medical equipment

Furniture and equipment; fixtures and fittings

Garden, play and external equipment

Soft furnishings

Computer equipment and software

Motor vehicles

50 years

5-50 years

Life of lease

5-10 years

4-20 years

5-10 years

4-5 years

3-5 years

4 years

No depreciation is provided on freehold land.

The cost of minor additions, defined as those costing less than

£500 each, are expensed in the year in which they are incurred.

(j) Fixed asset investments

Assets held with the intention of retaining them long-term

for the continuing benefit of the charity through income

and capital appreciation are classified as fixed asset

investments. These may include investments listed on

a recognised stock exchange (or ones valued by reference

to such investments, such as common investment funds,

open ended investment companies, and unit trusts),

investment land or properties, investments in subsidiary

undertakings, and cash held for investment purposes.

Fixed asset investments, other than cash deposits, are stated

at market valuation and any gains or losses are dealt with in

the statement of financial activities.

Investment in the subsidiary is stated at cost.

(k) Stock

Stock consists of purchased goods for resale. Purchased goods

for resale are valued at the lower of cost and net realisable

value, after allowing for obsolete and slow moving stock.

(l) Debtors

Other debtors, legacies receivable and accrued income are

recognised at the settlement amount due after any trade

discounts. Prepayments are valued at the amount prepaid

net of any trade discount.

Page 40 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Accounting policies


I shall never forget

that first visit. I left

feeling that my batteries

had been fully charged

ready to take up

the fight and face

whatever challenges

lay ahead. I no longer

felt alone as I had

become part of a very

special family.

(m) Cash at bank and in hand

Cash at bank and in hand includes cash in hand and cash

held by financial institutions.

(n) Creditors

Creditors are recognised when the charity has a present

obligation resulting from a past event that will probably result

in the transfer of funds to a third party and the amount due to

settle the obligation can be measured or estimated reliably.

(o) Financial instruments

The charity only has basic financial instruments that result

in the recognition of financial assets and financial liabilities.

Financial instruments include cash at bank, trade debtors,

legacies receivable, accrued income from financial instruments

(comprising dividends and interest due from investments),

trade and sundry creditors and accrued expenditure. Financial

instruments are initially recognised at transaction value and

subsequently measured at their settlement value.

(p) Significant estimates and judgements

Preparation of the financial statements requires management

to make significant judgements and estimates. The items

in the financial statements where these judgements and

estimates have been made include:

Useful economic lives of tangible and intangible assets

The annual depreciation and amortisation charges for

the tangible and intangible assets are sensitive to changes

in the estimated useful economic lives and residual

values of the assets. The useful economic lives and residual

values are amended when necessary to reflect current

estimates and the physical condition of the assets.

See notes 11 and 12 for the carrying amount of the

tangible and intangible assets and policy (i) for the useful

lives for each class of asset.

Impairment of debtors

The group makes an estimate of trade debtors and other

debtors. When assessing the impairment of trade debtors

and other debtors, management considers factors including

the current credit rating of the debtor, the ageing profile of

debtors and historical experience.

Government Retail, Hospitality and Leisure Grants

The full value of the retail, hospitality and leisure grants

from the Government as part of their COVID-19 funding

and support has been included within the financial

statements for the year ended 31 March 2020. This is

based on the announcement in the national media by

the Government on 17 March 2020 that these funds

would be available, and the subsequent documentation

accompanying grant applications that outlined the

eligibility date was the 11 March 2020. In addition, there

are no substantive criteria which the group believes

prevents it from having entitlement to the funds, the

receipt is deemed to be probable and the amounts to be

received can be clearly measured.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 41


Accounting policies

Audit report

Opinion

We have audited the financial statements of CHSW for the

year ended 31 March 2020 which comprise the Consolidated

Statement of Financial Activities, Consolidated and Charity

Balance Sheets, Consolidated Cash Flow Statement and notes

to the financial statements, including a summary of 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 group’s and

the charitable company’s affairs as at 31 March 2020

and of the group’s incoming resources and application of

resources for the year then ended;

have been properly prepared in accordance with United

Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements

of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with

International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards

are further described in the Auditor’s responsibilities

for the audit of the financial statements section of our

report. We are independent of the group in accordance

with the ethical requirements that are relevant to our

audit of the financial statements in the UK, including

the FRC’s Ethical Standard, and we have fulfilled

our other ethical responsibilities in accordance with

these requirements. We believe that the audit evidence

we have obtained is sufficient and appropriate to

provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following

matters in relation to which the ISAs (UK) require us to

report to you where:

the Trustees’ use of the going concern basis of accounting

in the preparation of the financial statements is not

appropriate; or

the Trustees have not disclosed in the financial statements

any identified material uncertainties that may cast

significant doubt about the group’s or the charitable

company’s ability to continue to adopt the going concern

basis of accounting for a period of at least twelve

months from the date when the financial statements are

authorised for issue.

The Trustees are responsible for the other information. The

other information comprises the information included in

the annual report, other than the financial statements and

our auditor’s report thereon. 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.

Other information

In connection with our audit of the financial statements,

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 audit or otherwise appears to be materially

misstated. If we identify such material inconsistencies

or apparent material misstatements, we are required to

determine whether there is a material misstatement in the

financial statements or a material misstatement of the other

information. 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.


We were one of the first families to use the hospice when it opened

in 2011 and our son actually laid the foundation stone when it was

being built. It was quite life-changing for us to have somewhere we

can trust 100 per cent with our special needs child.

Page 42 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


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, which

includes the directors’ report and the strategic report

prepared for the purposes of company law, for the financial

year for which the financial statements are prepared are

consistent with the financial statements; and

the strategic report and the directors’ report included

within the Trustees’ report have been prepared in

accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group

and the charitable company and their environment obtained

in the course of the audit, we have not identified material

misstatements in the strategic report or the directors’ report

included within the Trustees’ report.

We have nothing to report in respect of the following matters

in relation to which the Companies Act 2006 requires us to

report to you if, in our opinion:

the parent company has not kept adequate accounting

records; or

the parent company financial statements are not in

agreement with the accounting records and returns; or

certain disclosures of Trustees’ remuneration specified by

law are not made; or

we have not received all the information and explanations

we require for our audit.

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities

statement, set out on page 19, 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, 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 group’s or the charitable

company’s ability to continue as a going concern, disclosing,

as applicable, matters related to going concern and using

the going concern basis of accounting unless the Trustees

either intend to liquidate the charitable company or to cease

operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the

financial statements

Our objectives are to obtain reasonable assurance about

whether the financial statements as a whole are free

from material misstatement, whether due to fraud or

error, and to issue an auditor’s report that includes our

opinion. Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in

accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from

fraud or error and are considered material if, individually

or in the aggregate, they could reasonably be expected

to influence the economic decisions of users taken on the

basis of these financial statements.

A further description of our responsibilities for the audit

of the financial statements is located on the

Financial Reporting Council’s website at:

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.

Guy Biggin

Senior Statutory Auditor

For and on behalf of U.K.

LLP Statutory Auditor,

Carrick House, Lypiatt Road, Cheltenham,

Gloucestershire GL50 2QJ

Date: 7 October 2020

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 43


Structure governance and management

CHSW is a registered charity with the Charity Commission

in England and Wales (charity number 1003314) and

was incorporated as a private company limited by guarantee

(company number 02620879), on 17 June 1991. Legal

and company information is set out on page 47 and lists

the Directors and Trustees, the SMT and the principal

advisors and forms part of this report.

Principal object of the charity

The charity was established “to promote the relief of illness

and suffering in such ways as the Association shall from

time to time think fit, and in particular in the South Western

counties of England and adjacent areas and in particular:

by establishing, maintaining and conducting residential

nursing homes for the reception and care of

young persons who are suffering from any chronic or

terminal illness or from any other physical or mental

infirmity, disability or disease and for the reception

and care of the members of the family of such persons

whether adult or otherwise, and so that any such home

may be restricted to patients (and the families of

patients) of under a certain age limit or to patients

suffering from any particular types of illness, disability,

disease or infirmity, and by providing medical or other

treatment or attention for any such persons and their

families as aforesaid in their own homes;

by conducting or promoting or encouraging research into

the care and treatment of persons suffering from any

such illness, disability, disease or infirmity as aforesaid

and particularly into the care and treatment of persons

suffering from terminal illness and the care of the families

of such persons and by providing for the dissemination

of the results of such research;

by promoting or encouraging or assisting in the

teaching or training of Doctors, Nurses, Physiotherapists,

Administrators, Social Workers, and other persons

engaged in any branch of medicine, surgery, nursing

or allied services, and in the teaching or training

of students in any branch of medicine, surgery,

nursing or allied services;

by providing or assisting or encouraging the provision

of spiritual help and guidance for any persons resident

(either as patients or as families) or associated in any

way with any such home or homes as aforesaid.”

In pursuing the principal objectives of the organisation,

activities that CHSW provides to the families in the South

West are detailed on pages 8-9.

Organisational structure

The charity is constituted as a company limited by guarantee,

and, therefore, is governed by a Memorandum and Articles of

Association and has no share capital.

The charity has a wholly owned subsidiary, C H S W Promotions

Limited. The principal activity of the subsidiary is the sale of

promotional and bought in goods in support of CHSW.

The Directors of this subsidiary throughout the year, unless

otherwise stated, are as follows:

Nicola Mason, CHSW Trustee;

Jessica Patel, CHSW Director of Marketing and

Communications;

David Turner, CHSW Trustee;

Jonathan Webber, CHSW Director of Finance.

All Directors of CHSW, excluding the SMT, are also Trustees

of the charity and there are no other Trustees. All the Trustees

named on page 47 served throughout the year and until the

date this report has been signed, unless otherwise stated.

The charity is organised so that the Trustees meet collectively

four times a year to direct the management of its affairs.

Strategy days are also held periodically.

The members of the charity may, by ordinary resolution,

appoint persons who are willing to act to be Trustees.

Assurance committees

In addition to regular Board meetings, with the attendance

of all Trustees and the SMT, delegated authority has been

given to Assurance Committees to assist the Board in several

functional and risk areas of the organisation. These Assurance

Committees are attended by Trustees with relevant skills and

experience, meet at least three times per year and report


We just can’t thank

Children’s Hospice South

West enough for everything

they are doing for us -

the care they provide is

beyond special.

Page 44 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


directly to the Board. They currently include:

Care Assurance Committee;

Fundraising and Marketing Assurance Committee;

Finance, Investment and Trading Assurance Committee;

Risk, Audit and Governance Committee;

Remuneration Assurance Committee.

Appointment of Trustees

The Board is responsible for confirming the appointment of a

new Trustee following a clear recruitment and selection policy

and procedure. The term of office is three years after which

period a Trustee must seek re-appointment by the Board if he or

she wishes to continue as a Trustee. There is currently a threeterm

maximum on number of terms of office a Trustee can have.

CHSW will ensure it maintains and enhances its own

accountability and wider public confidence in its work by:

engaging effectively with the community it serves;

responding equitably to the needs of its users;

endeavouring to ensure a mix of Trustees that reflects the

mix of CHSW beneficiaries and its local communities.

New Trustees are offered a programme of induction which

includes reading a certain amount of literature, meeting with

some of those who lead the organisation, and gaining some

first-hand experience of situations in which we work. The

programme of induction contains the following elements:

A document pack including:

organisational structure chart;

governing documents and governance policies;

strategic plan;

latest annual report;

latest management accounts;

risk register;

annual meeting schedule.

Meeting key personnel including the chair of Trustees

and individual members of the SMT.

Taking a tour of one of our hospices and meeting with

the Head of Care.

Attending a welcome day with other new staff.

Spending time on a shift, working with the Care Team.

Attending other key events such as a staff quarterly

site meeting, fundraising events and a Friends Group

conference.

Management

The day to day operation of the charity is carried out by

SMT, listed on page 47, who have delegated responsibility

and are employees of the charity.

Care services throughout the charity are provided under

the direction of the Director of Care, Allison Ryder.

Fundraising staff work under the direction of the Director

of Fundraising, Paul Courtney. The Director of Marketing

and Communications, Jessica Patel, oversees marketing

and communication issues together with IT services.

The finance function is overseen by the Director of Finance,

Jonathan Webber. Jonathan is also Company Secretary and

is responsible for the trading operations.

The Director of HR, Daphne Sands, is also responsible for

facilities management and health and safety.

The above members of SMT report to the Chief

Executive, Eddie Farwell, who oversees all operational

and strategic matters.

Senior Management Team remuneration

SMT remuneration, including that of the Chief Executive,

is reviewed annually by the Remuneration Assurance

Committee. Senior management remuneration is established

and reviewed periodically based on the Hay Group

methodology in respect to job evaluation and also having due

regard to CHSW’s duty to ensure best value and after taking

advice on pay levels, market conditions and other relevant

factors.

Other than allowable expenses, CHSW makes no payments

in addition to the basic salary to the Chief Executive and SMT

for undertaking their core role. Any authorised additional

hours will be subject to the conditions in line with all staff.

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 45


Structure, governance and management

Employees

CHSW is committed to the principle of equal opportunities

in employment and recognises its obligations under the

Equality Act 2010. CHSW declares its opposition to any

form of less favourable treatment, whether through direct

or indirect, associated or perceived discrimination accorded

to employees or job applicants, on the grounds of their sex,

race, ethnic origin, nationality, religion or belief, disability,

age, marital/civil partnership status, gender reassignment or

sexual orientation, pregnancy or maternity.

CHSW is committed to creating a positive culture of respect

for all employees, volunteers and families, to promote

positive practice and to value the diversity of all individuals

and communities.

CHSW embraces and recognises the importance of diversity,

that different people bring different perspectives, ideas,

knowledge and culture, and that this difference brings

great strength as well as contributing to employee wellbeing

and engagement.

Our aim is to create a culture that respects and values each

person’s differences, that promotes dignity, equality and

diversity, and that encourages individuals to develop and

maximise their true potential.

We expect commitment and involvement from all our

employees, volunteers, partners and providers of goods and

services in working towards the achievement of our aim.

Continued close attention is paid to the health and safety

of employees while at work and all employees are provided

with appropriate training, in compliance with the CHSW

Health and Safety Policy.

Employee views are sought through a number of forums

including team meetings, steering groups and the Staff

Council. Information concerning the charity and its activities

and performance are shared with employees through

several different mediums, including face to face meetings

and through email and intranet platforms. These forms of

communication are constantly being improved and developed.

Memberships

To assist in its decision making and to ensure current and best

practice is always followed, the charity are active participants

in the membership of several ‘not for profit’ organisations.

These include the following:

Charity Retail Association;

Hospice Lottery Association.

Related parties

CHSW has a trading subsidiary C H S W Promotions

Limited which is responsible for the sale of all new goods,

including Christmas Cards. The relationship between the two

organisations is set out in a memorandum of understanding.

Charity governance code

CHSW is a not for profit organisation which aims to follow

charity sector best practice. The Trustees are integrating

and embedding the updated version of the Charity

Governance Code (the “Code”), published in July 2017, into

all aspects of their roles. On an ongoing basis, the Trustees

will undertake reviews of the Code and implement any

consequential changes to CHSW’s governance and standards.

Energy and carbon reporting

In November 2019 CHSW engaged an independent firm

of consultants to demonstrate compliance under the

Energy Savings and Opportunities Scheme. This piece of

work involved assessing the organisations current energy

usage including business, transport, and process, and

suggesting energy efficiency opportunities. This requires

compliance every 4 years.

The outcome of the report assessed the organisation’s

annual energy usage as 1,206,962 kWh which equates to

341,654 CO2e over a 12-month period, ending 31 March

2019. When assessed against the organisations Charitable

spend of £9,306,380 this gives an intensity ratio of 1 Co2e:

£27.24 charitable spend.

The report suggested the top five energy efficiency

opportunities which are currently being considered by the

SMT and the Trustees.

1 Rationalise HVAC setpoints - heating and cooling.

2 Upgrade lighting to LEDS.

3 Rationalise HVAC timings - match with occupancy.

4 Behaviour change.

5 Upgrade heating systems.

H o s p i c e U K ;

Together for Short Lives;

Institute of Fundraising;

Page 46 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Reference and administration

Company Number 02620879

Charity Number 1003314

Directors and Trustees Dr Simon Langton-Hewer (resigned 16 July 2020)

Stephen Hindley CBE, DL

Gerry Sones (resigned 16 July 2020)

David Turner

Karen Rogers

Beverley Horler (resigned 13 November 2019)

Damian Whittard (resigned 28 November 2019)

Nicola Mason

Patricia Morris

Elizabeth Redfern CBE (resigned 11 November 2019)

Alan Broughton

Roger Knight

Elizabeth Childs (appointed 18 July 2019)

Kate Martin (appointed 18 July 2019)

Secretary

Registered Office

Jonathan Webber

Little Bridge House, Redlands Road, Fremington,

Barnstaple, Devon EX31 2PZ

Senior Management Team

Chief Executive (CEO)

Director of Care

Director of Finance

Director of HR

Director of Fundraising

Director of Marketing and Communications

Eddie Farwell MBE, Hon LLD

Allison Ryder

Jonathan Webber

Daphne Sands

Paul Coutney

Jessica Patel

Advisors

Principal Bankers

Principal Solicitors

Investment Managers

Barclays Bank Plc 3rd Floor, 3 Bedford Street,

Exeter EX1 1LX

Burges Salmon LLP 1 Glass Wharf, Bristol BS2 0ZX

Cazenove Capital Management Limited

1 London Wall Place, London EC2Y 5AU

Sarasin & Partners LLP

Juxon House, 100 St Paul’s Churchyard,

London EC4M 8BU

Independent Auditor

Crowe U.K. LLP Carrick House, Lypiatt Road,

Cheltenham, Gloucestershire GL50 2Q

Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 47


Our fundraising standards

Committed to the highest standards

CHSW is committed to ensuring all of our fundraising

activities are safe, respectful, transparent and accountable.

We are registered with the Fundraising Regulator and

through consistent training and monitoring, benchmark all

of our activities against the Code of Fundraising Practice.

Many of our fundraising team are individual members of the

Institute of Fundraising, enabling them to keep up to date

with best practice and developing industry guidelines.

These high standards of fundraising that we expect of

our in house teams also extend to those acting on behalf

of CHSW. Volunteers receive extensive training to ensure

they are up to date with regulatory changes and any

agencies or commercial participators that represent the

CHSW brand have to demonstrate their commitment

standards before work commences.

In the year 2019/20, CHSW did not engage with any

external fundraising agencies. During the year there were

a number of Cause Related Marketing (CRM) agreements

with companies partnering with us to raise funds.

These agreements were reviewed regularly to ensure

companies carrying the CHSW logo acted in line with

the standard expected at all times.

Whilst we are committed to these very high standards, they

are times when we do receive concerns or complaints. In the

last year six people contacted us to raise a concern about our

fundraising and marketing activities and we received four

complaints (2019: eight). These were all reviewed and resolved

in line with the charity’s complaints policies and no further

escalation or involvement of external regulators was required.

In the last year we have undertaken refresher training across

the Fundraising and Marketing departments at CHSW to

ensure that everyone is aware of the Fundraising Regulator’s

revised and updated guidance. Particular attention was given

in this training to ensuring all staff understood the importance

of respecting the privacy of supporters (especially those

who may be classified as vulnerable). All staff are committed

to behaviour that ensures no potential or existing supporter

feels under any undue pressure to help CHSW.

Page 48 Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020


Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020

Page 49


www.chsw.org.uk

enquiries@chsw.org.uk

Redlands Road, Fremington, Barnstaple, Devon EX31 2PZ

01271 325 270

Charlton Drive, Wraxall, North Somerset BS48 1PE

01275 866 600

Porthpean Road, Porthpean, St Austell, Cornwall PL26 6AZ

01726 871 800

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