Hospice Accounts 2014 by Eden Valley Hospice & Jigsaw Children's Hospice

COMPANY REGISTRATION NUMBER 02677824

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014

Charity Number 1008796

DAVID ALLEN Chartered Accountants & Statutory Auditor Dalmar House Barras Lane Estate Dalston Carlisle CA5 7NY

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014

CONTENTS

PAGES

Members of the board and professional advisers

1 to 2

Trustees' annual report (incorporating the strategic report)

3 to 10

Independent auditor's report to the members

11 to 12

Consolidated statement of financial activities (incorporating the income and expenditure account)

Consolidated balance sheet

Company balance sheet

Consolidated cash flow statement

16 to 17

Notes to the consolidated financial statements

18 to 30

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS

Registered charity name

Eden Valley Hospice, Carlisle

Charity number

1008796

Company registration number

02677824

Principal office

Durdar Road Carlisle CA2 4SD

Registered office

Durdar Road Carlisle CA2 4SD

Trustees

Mr C Birtle Miss P Breen Ms S E Crouchley Mrs F C Fell Mrs L Garbarino Dr C L Harvey Mrs A M Leung (Vice Chair) Mr S J Nunwick Mr R W Peckford Mr W J Priddle (Chairman) Mr A J Setters Mr R Wise

Secretary

Mr J Hunston

Chief executive

Mrs J Ferguson

Auditor

David Allen Chartered Accountants & Statutory Auditor Dalmar House Barras Lane Estate Dalston Carlisle CA5 7NY

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS (continued)

Bankers

HSBC Bank plc 29 English Street Carlisle CA3 8JT Clydesdale Bank plc 239 Kingstown Road Kingstown Industrial Estate Carlisle CA3 0BQ Cumberland Building Society Cumberland House Castle Street Carlisle CA3 8RX Bank of Scotland plc PO Box 17235 Edinburgh EH11 1YH Handelsbanken 4C Clifford Court Parkhouse Carlisle CA3 0JG

Solicitors

Cartmell Shepherd Viaduct House Carlisle CA3 8EZ

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) YEAR ENDED 31 DECEMBER 2014 The trustees, who are also directors for the purposes of company law, present their report and the financial statements of the company for the year ended 31 December 2014. REFERENCE AND ADMINISTRATIVE DETAILS Reference and administrative details are shown in the schedule of members of the board and professional advisers on pages 1 to 2 of the financial statements. THE TRUSTEES The trustees who served the company during the period were as follows: Mr C Birtle Mrs F C Fell Mrs C R Ferguson Mrs L Garbarino Mrs A M Leung (Vice Chair) Mr S J Nunwick Mr J D Peatfield Mr R W Peckford Mr W J Priddle (Chairman) Mr J S Remmer Mr A J Setters Mrs C R Ferguson resigned as a trustee on 20 May 2014. Mr J S Remmer resigned as a trustee on 18 November 2014. Mr J D Peatfield resigned as a trustee on 16 December 2014. Miss P Breen was appointed as a trustee on 20 January 2015. Ms S E Crouchley was appointed as a trustee on 20 January 2015. Dr C L Harvey was appointed as a trustee on 20 January 2015. Mr R Wise was appointed as a trustee on 20 January 2015. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document Eden Valley Hospice, Carlisle was incorporated on 15 January 1992 as a company limited by guarantee with company registration number 02677824, and is registered with the Charity Commission with registration number 1008796. The company is governed by its memorandum and articles of association. Recruitment, appointment, training and induction of trustees Trustees serve for four years and for a further four years if they wish, with a maximum period of eight years. They may offer themselves for re-election in accordance with the memorandum and articles of association, if they have expertise or skills which the board wishes to retain, and if there are no alternatives available. Trustees can be elected for a maximum of a further four years. Audits of trustees' skills are carried out regularly, particularly if there are any retirements pending. If skills gaps are identified within the board, recruitment takes place. Advertisements are placed in local newspapers and on the website and applications are invited. Members of the board of trustees, led by the chairman, carry out interviews. Trustees are only appointed after references and a disclosure and barring service certificate is received. An induction programme is drawn up and agreed by the chairman, which includes individual meetings with the chief executive and senior management team members, along with visits to Eden Valley Hospice, Carlisle including Jigsaw, Cumbria's Children's Hospice. Where appropriate, visits to other hospices may be arranged. Information from the Charity Commission and Companies House relating to the duties and responsibilities of trustees is given to each new recruit. Details of relevant courses are shared with trustees to enable them to increase their knowledge and understanding of their role.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) (continued) YEAR ENDED 31 DECEMBER 2014 Organisational structure The board of trustees has overall responsibility for the governance and delivery of services, including agreeing strategy, meeting at least bi-monthly and taking special interest in specific areas of the hospice. In 2012 "Building on Our Strengths" was agreed as the strategy for 2012 to 2015. All conflicts of interest are stated at board meetings, with expressions of interest noted at any meetings with regard to agenda items. There are three subcommittees with clear terms of reference and delegated powers; these are: 1. remuneration and appointments 2. finance and audit 3. complaints and disciplinary A trustee also chairs the clinical governance group. The chief executive has responsibility for implementing strategy and overseeing day to day running of the hospice which is coordinated through the senior management team. The senior management team consists of the chief executive, head of finance and administration, head of care, head of marketing and income generation and head of support services. The management team, which includes operational managers from across the hospice, receives reports from all working groups across the hospice, undertakes identified pieces of work and monitors the Care Quality Commission (CQC) outcomes. Related parties Eden Valley Hospice, Carlisle will continue to work in partnership with other non-statutory and statutory service providers, with commissioning authorities and with service users, to develop specialist palliative care services for both adults and children. The trustees and senior management team are proactively engaged in developing and sustaining links with a range of commissioning leads and other local providers. During 2014 the chief executives of all four Cumbrian hospices have started to meet regularly to promote collaboration and cooperation. The Cumbrian hospices have jointly implemented an electronic patient record funded by Cumbria Clinical Commissioning Group. Eden Valley Hospice (Shop) Limited is a wholly owned subsidiary of the charitable company. Eden Valley Hospice (Shop) Limited runs a number of shops selling donated goods and a weekly lottery. The profits generated by Eden Valley Hospice (Shop) Limited are covenanted to Eden Valley Hospice, Carlisle. Risk management statement Eden Valley Hospice, Carlisle has a risk management strategy which comprises: 1. Identifying and managing the risks faced by Eden Valley Hospice, Carlisle and documenting these in a risk register. 2. Establishing and reviewing policies and procedures to mitigate those identified risks. 3. Implementing policies and procedures designed to minimise any potential impact on Eden Valley Hospice, Carlisle should those risks materialise. 4. Process for recording and reviewing all accidents, incidents and near misses. Compliance with laws and regulations The chief executive reports to the board of trustees and meets regularly with the chairman. The board of trustees meet every two months and the senior managers are in attendance at these meetings. Minutes from senior management team meetings, the clinical governance committee and board sub committees are circulated to all board members.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) (continued) YEAR ENDED 31 DECEMBER 2014 Following publication of the Health and Social Care Act 2008 (Regulated Activity) Regulations 2009, Eden Valley Hospice, Carlisle is monitored on essential standards of quality and safety by the CQC. The last CQC inspection took place in December 2013 and the report was published in January 2014. The CQC implemented a new inspection regime in October 2014 and Eden Valley Hospice, Carlisle is awaiting its first inspection under this regime. The hospice continues to be monitored in respect of environmental health. All employees receive a copy of the staff handbook. Mandatory training for staff and volunteers is provided regularly and is reinforced by a mandatory training workbook. The content of mandatory training is reviewed and updated by the training group. Staff appraisals take place annually to ensure individual training needs are identified and met. Indemnity insurance The charity has purchased indemnity insurance during the year on behalf of the trustees. The insurers have indemnified the trustees in respect of any loss arising from any claim which may be made arising from any breach of duty, negligent act/ omission and breach of warranty/ authority or libel/ slander/ defamation committed in good faith in connection with the conduct of the business carried out by the charity. OBJECTIVES AND ACTIVITIES Eden Valley Hospice, Carlisle is dedicated to providing specialist palliative and end of life care to adults from the local area and children throughout Cumbria, as well as caring for their families, friends and carers. Eden Valley Hospice, Carlisle aims to provide the highest standards of nursing and medical care, to sustain quality of life and dignity and to provide patients with relief from pain. The aim is to control symptoms, relieve physical and emotional distress and provide support to both patient and family. Eden Valley Hospice, Carlisle aims to: 1. Provide specialist palliative care in a therapeutic environment for people living with a progressive illness, supporting them to live life comfortably and fully. 2. Extend care and comfort to families, supporting them as partners in care and recognising their individual needs. 3. Manage physical symptoms and offer care for the spiritual, emotional, psychological and social needs of patients and carers. 4. Provide bereavement care and support. 5. Provide a local resource, as a centre of knowledge for the management and support of those requiring palliative care, from which the community can access help. 6. Support education and training in palliative and end of life care for its own employees and for other health care staff. Services include twelve bedded adult in-patient unit, adult day hospice, out-patient clinics, family support team, complementary therapies, out of hours advice for professionals involved in end of life care and training and education. Eden House Children's Hospice, now called Jigsaw, Cumbria's Childrenâ&#x20AC;&#x2122;s Hospice is an integral part of Eden Valley Hospice, Carlisle providing day to day palliative care and support to children and young people who are living with a life limiting illness. Family and sibling support are important elements of the service. Care is provided in a home from home setting and each young person who is staying at the hospice has their own bedroom. The ethos of Jigsaw is to work in partnership with the child, their family and other professionals. The aim of the care team is to maintain the child's normal routine and make their stay as special and enjoyable as possible. During 2014 staff from Jigsaw have also started to offer outreach support to children and families in their own homes and communities.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) (continued) YEAR ENDED 31 DECEMBER 2014 Jigsaw, Cumbria's Childrenâ&#x20AC;&#x2122;s Hospice, aims to: 1. Provide a flexible, high quality palliative care service to children from across Cumbria. 2. Work in partnership with the children, their families and all agencies involved with their care. 3. Offer support to families as well as children. Eden Valley Hospice and Jigsaw services are provided by qualified and experienced staff, supported by a large team of committed volunteers. The role and contribution of volunteers The charity is fortunate in being supported by around 400 volunteers, who willingly give their time, to provide a valuable service in the hospice as well as in the shops and at various fundraising events throughout Cumbria. Their continued support enables the hospice to offer a wide range of services. Employee involvement A staff committee is held on a regular basis to ensure that all staff are kept informed of and contribute to developments as necessary. The management team continues to develop and assist with the overall running of the hospice and to discuss all topical issues. A staff survey was carried out during 2014 to assess staff attitudes to the organisation and identify areas for improvement. Public benefit The trustees have complied with their duty in section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission's guidance on public benefit. STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE 2014 impact and achievements 2014 impact: 1. 316 adults with life limiting illnesses were supported through admission to the hospice or by attending day hospice. 2. 24 hour advice was available for professionals working with palliative patients across Cumbria via the help and advice line. 3. Pain, stress and distress in patients and carers was reduced through access to complementary therapy provided in a comfortable setting by experienced staff. 4. Distress in carers was reduced by participation in Sunflower programme of workshops. 5. Patients and carers were supported by being able to access social workers with training, knowledge and experience in palliative care. 6. Respite, companionship and fun was available for children with life limiting illnesses from across Cumbria who attend the hospice. 7. The children with life limiting illnesses, together with their brothers and sisters, and their families have had the opportunity to attend the hospice together and receive support for their differing needs. 8. After death, children were able to be cared for in the butterfly room until their funeral with ongoing support offered from the care team to their extended families. 9. Outreach support was offered to children and their families so they could receive similar support in their home environment. 10. 183 people who have been bereaved have had access to counselling and support from the family support team according to their individual needs. 11. The awareness of Jigsaw, Cumbria's Children's Hospice, was deepened across the county through a collaboration with BBC Radio Cumbria, who broadcast from the hospice several times over the year.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) (continued) YEAR ENDED 31 DECEMBER 2014 2014 achievements: 1. Emis web electronic record was introduced to improve record keeping and support communication with other professionals about individual patient care. 2. Eden House was relaunched as Jigsaw, Cumbria's Children's Hospice in order to improve awareness and promote access to the service from across Cumbria. 3. Three new doctors were appointed to the medical team which works in collaboration with the NHS specialist palliative care medical team to support people with palliative or end of life care needs. 4. One of the new doctors has experience of paediatric palliative care which is being used to develop medical input into Jigsaw. 5. Newcastle Muscle Clinic has increased the number of clinics it holds within the hospice and piloted holding their children's out patient clinic within Jigsaw. 6. Provided training and support to other professionals around planning and preparation for end of life care through continuation of "Deciding Right". 7. The hospice offered training about the "Six Steps" approach to improving end of life care in care homes and then moved on to starting the training for domiciliary care settings. 8. Staff survey completed with an excellent response rate and any issues arising from that survey have been or are being addressed. 9. Following comments made in the staff survey, a pay review has been carried out which will be implemented in 2015. This will replace inclusive pay rates for shift workers with pay based on actual shifts worked, making for a fairer and more transparent system. 10. The trading subsidiary has been retrospectively registered for VAT, with several years' input tax recovered, net of output tax due. 11. Completion of work to improve accessibility across the hospice, following receipt of a Department of Health grant. This included improving transport for the patients by purchasing a new ambulance. 12. Disabled toilets and baby changing facilities were added to reception and disabled parking was improved. 13. Enhancement to Jigsaw access arrangements, with patio doors and canopy. 14. The accommodation offered to relatives of both adults and children has been improved and upgraded following receipt of a donation. 15. The reception area of the hospice has been improved with new lighting, heating and carpeting, making it more welcoming for visitors. 16. Three new members of the senior management team were integrated into the running of the hospice. Equality and diversity training was offered to all staff.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) (continued) YEAR ENDED 31 DECEMBER 2014 Care provided in 2014 Adult in-patient: 1. 2. 3. 4. 5.

220 patient admissions 134 patient discharges 84 patient deaths bed occupancy 64% average length of stay 11.9 days

Day hospice: 1. 90 patients (50 new) 2. 1,452 day care attendances 3. 43 deaths and discharges Jigsaw, Cumbria's Children's Hospice: 1. 2. 3. 4. 5.

56 patients 1,077 day care sessions 964 overnight stays 531 episodes of care 3 deaths

FINANCIAL REVIEW 2014 was a mixed year, with excellent legacy income and money donated from the BBC Radio Cumbria appeal making up for reduced receipts from the trading subsidiary and other fundraising activities. The grant from the Department of Health of £149,562 has also boosted the income for the year, although this was used for expenditure on capital projects and as such should be discounted in looking at whether the hospice is covering its running costs. The BBC Radio Cumbria appeal was much more successful than anticipated and has raised the awareness of Jigsaw, Cumbria's Children's Hospice around the county. However, most of the related expenditure will occur in future years and this needs to be borne in mind when looking at our income versus expenditure. The trading subsidiary company suffered a loss of income in the year, due to a change in management in the shops and the retirement of a collector for the lottery income. Both of these income streams are being addressed in the 2015 financial year with an aim to increase the income generated. Clinical salary costs have risen by £66,732 (4.2%) and sickness has been a major factor this year. Other salary costs have risen by £40,841 (5.6%), partly as a result of a decision to increase the senior management team from four to five, and partly due to long term sickness in the housekeeping team. However, total salary costs and indeed all costs have been kept within budget. A review of the VAT position of the hospice has resulted in the trading company being registered for VAT, as its shop income, mostly donated goods and therefore zero rated, has exceeded the registration threshold. As the VAT incurred on costs exceeds the VAT chargeable on sales of bought in goods, VAT has been recovered. VAT on costs incurred by the lottery would not normally be recoverable as the lottery income is exempt from VAT. However, this has also been recovered as they are relatively small and currently fall within the "de minimis" rules for partially exempt business. The cash held at the year end has increased by £287,935 and stands at £2,065,503. Of this, £1,196,497 was held on one year term deposits and £551,026 on an interest bearing instant access account.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) (continued) YEAR ENDED 31 DECEMBER 2014 Reserves policy The trustees have reviewed the reserves of the charity. The review encompassed the nature of the income and expenditure streams, the need to match variable income with fixed commitments and the nature of reserves. The review concluded that, to allow the charity to be managed efficiently and to provide a buffer for uninterrupted services, cash reserves equivalent to twelve months' running costs should be the aim. Investment policy Eden Valley Hospice, Carlisle only invests funds in interest bearing accounts. PLANS FOR FUTURE PERIODS Current strategy: Jigsaw, Cumbria's Children's Hospice aims to: 1. Raise the profile and reach of the service. 2. Plan transition arrangements for young adults. 3. Develop links with paediatric medical services. The adult hospice services will: 1. Extend the accessibility of the medical, non-medical and support services through increased outreach arrangements. 2. Promote our experience and expertise with professionals in nursing homes, residential care services and other health care providers. Working with others Eden Valley Hospice, Carlisle intends to: 1. Further develop the collaboration and partnerships with other hospices and palliative care providers. 2. Work with NHS and other providers to develop a local palliative care strategy. 3. Play a key role with commissioners in establishing how services are commissioned across Cumbria. With stakeholders Eden Valley Hospice, Carlisle will: 1. Be alert and responsive to the views of those who use or share an interest in the services. 2. Invest in promoting a significant increase in awareness about the nature, range and availability of the services. 3. Maintain the commitment to the training and development of volunteers, staff and trustees, to enable them to reach their full potential to their benefit and for the benefit of the hospice. 4. Continue to develop and maintain new and existing volunteer roles and initiatives within the hospice and in the wider communities that Eden Valley Hospice, Carlisle serves. Approach to funding - Eden Valley Hospice, Carlisle will seek to: 1. Ensure financial sustainability. 2. Grow our capacity for community based fundraising. Recognising the extent of change and growth in 2014 the hospice plans for 2015 are based on embedding the developments and ensuring future sustainability. An immediate task for the trustees in 2015 is to agree the next three or five year strategy which will then influence the future development of annual business plans.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (INCORPORATING THE STRATEGIC REPORT) (continued) YEAR ENDED 31 DECEMBER 2014 TRUSTEES' RESPONSIBILITIES STATEMENT The trustees (who are also the directors of Eden Valley Hospice, Carlisle for the purposes of company law) are responsible for preparing the Trustees' annual report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 company and the income and expenditure of the company for that period. In preparing these financial statements, the trustees are required to: ·

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and accounting estimates that are reasonable and prudent; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in operation.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITOR David Allen have been re-appointed as auditor for the ensuing year in accordance with section 485 of the Companies Act 2006. Each of the persons who is a trustee at the date of approval of this report confirms that: ·

so far as each trustee is aware, there is no relevant audit information of which the company's auditor is unaware; and

each trustee has taken all steps that they ought to have taken as a trustee to make themself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Signed by order of the trustees

MR J R HUNSTON Company Secretary 17 March 2015

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDEN VALLEY HOSPICE, CARLISLE YEAR ENDED 31 DECEMBER 2014 We have audited the financial statements of Eden Valley Hospice, Carlisle for the year ended 31 December 2014 which comprise the consolidated Statement of Financial Activities, the consolidated and parent charitable company Balance Sheets, the consolidated Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR As explained more fully in the Trustees' annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of financial statements and for being satisfied that they give a true and fair view. We have been appointed auditor under the Companies Act 2006 and report in accordance with that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' annual report incorporating the Strategic Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: •

give a true and fair view of the state of the group's and the parent charitable company’s affairs as at 31 December 2014, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

•

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•

have been prepared in accordance with the requirements of the Companies Act 2006.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Trustees' annual report for the financial year for which the financial statements are prepared is consistent with the financial statements.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EDEN VALLEY HOSPICE, CARLISLE (continued) YEAR ENDED 31 DECEMBER 2014 MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: •

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

•

the parent charitable 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.

ALISON WELTON (Senior Statutory Auditor) For and on behalf of DAVID ALLEN Chartered Accountants & Statutory Auditor Dalmar House Barras Lane Estate Dalston Carlisle CA5 7NY 17 March 2015

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2014 Unrestricted Funds £

Restricted Funds £

Total Funds 2014 £

Total Funds 2013 £

1,399,295

1,375,991

2,775,286

2,406,129

3 4

821,323 17,179

– –

821,323 17,179

1,082,385 11,924

5 6

33,189 3,895

2,629 –

35,818 3,895

41,621 4,433

--------------------------------------------

2,274,881

1,378,620

3,653,501

3,546,492

--------------------------------------------

Note INCOMING RESOURCES Incoming resources from generating funds: Voluntary income Activities for generating funds Investment income Incoming resources from charitable activities Other incoming resources TOTAL INCOMING RESOURCES RESOURCES EXPENDED Costs of generating funds: Fundraising trading: cost of goods sold and other costs Charitable activities Governance costs

7 8 9

(536,685) (1,736,892) (4,205) --------------------------------------------

TOTAL RESOURCES EXPENDED

(2,277,782) --------------------------------------------

NET INCOMING/ (OUTGOING) RESOURCES FOR THE YEAR/NET INCOME FOR THE YEAR 10 RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD

– (1,203,559) – --------------------------------------------

(1,203,559)

(536,685) (2,940,451) (4,205) --------------------------------------------

(3,481,341)

(539,035) (2,785,801) (3,868) --------------------------------------------

(3,328,704)

--------------------------------------------

175,061

172,160

217,788

2,726,392

2,888,900

5,615,292

5,397,504

--------------------------------------------

2,723,491

3,063,961

5,787,452

5,615,292

============================================

(2,901)

The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared. All of the above amounts relate to continuing activities.

The notes on pages 18 to 30 form part of these financial statements.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE CONSOLIDATED BALANCE SHEET 31 DECEMBER 2014 2014 £

Note FIXED ASSETS Tangible assets

CURRENT ASSETS Stocks Debtors Cash at bank and in hand

15 16 17

CREDITORS: Amounts falling due within one year

2013 £

4,051,160 4,049 90,849 2,065,503

£ 4,013,568

8,842 180,629 1,777,568

--------------------------------------------

2,160,401

1,967,039

(424,109)

(365,315)

--------------------------------------------

NET CURRENT ASSETS

1,736,292 --------------------------------------------

--------------------------------------------

TOTAL ASSETS LESS CURRENT LIABILITIES

5,787,452

5,615,292

--------------------------------------------

NET ASSETS

5,787,452

5,615,292

============================================

3,063,961 2,723,491

2,888,900 2,726,392

FUNDS Restricted funds Unrestricted income funds

21 22

TOTAL FUNDS

1,601,724

--------------------------------------------

5,787,452

5,615,292

============================================

These financial statements were approved by the members of the committee and authorised for issue on the 17 March 2015 and are signed on their behalf by:

MR W J PRIDDLE Trustee Company Registration Number: 02677824

The notes on pages 18 to 30 form part of these financial statements.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE COMPANY BALANCE SHEET 31 DECEMBER 2014 2014 £

Note FIXED ASSETS Tangible assets Investments

CURRENT ASSETS Debtors Cash at bank and in hand CREDITORS: Amounts falling due within one year

13 14

16 17

2013 £

4,041,252 2

£ 4,001,694 2

--------------------------------------------

4,041,254

4,001,696

174,676 1,921,117

175,394 1,737,443

--------------------------------------------

2,095,793

1,912,837

(349,834)

(299,704)

--------------------------------------------

NET CURRENT ASSETS

1,745,959 --------------------------------------------

--------------------------------------------

TOTAL ASSETS LESS CURRENT LIABILITIES

5,787,213

5,614,829

--------------------------------------------

NET ASSETS

5,787,213

5,614,829

============================================

3,063,961 2,723,252

2,888,900 2,725,929

FUNDS Restricted funds Unrestricted income funds

21 22

TOTAL FUNDS

1,613,133

--------------------------------------------

5,787,213

5,614,829

============================================

These financial statements were approved by the members of the committee and authorised for issue on the 17 March 2015 and are signed on their behalf by:

MR W J PRIDDLE Trustee Company Registration Number: 02677824

The notes on pages 18 to 30 form part of these financial statements.

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EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED 31 DECEMBER 2014 2014 £ £ RECONCILIATION OF NET INCOMING RESOURCES BEFORE TRANSFERS TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES Net incoming resources before transfers 172,160 Loss on disposal of fixed assets 125 Interest receivable (17,179) Depreciation 154,435 Decrease/(Increase) in stocks 4,793 Decrease/(Increase) in debtors 89,780 Increase/(Decrease) in creditors 58,794 Net cash inflow from operating activities

217,788 9,103 (11,924) 140,687 (1,081) (57,821) (109,646)

----------------------------------

187,106

-----------------------------

CAPITAL EXPENDITURE Payments to acquire tangible fixed assets Receipts from sale of fixed assets

11,924 -----------------------------

17,179

11,924

(190,995) –

(195,403) 3,251 ----------------------------------

Net cash outflow from capital expenditure

----------------------------------

(192,152) ----------------------------------

INCREASE IN CASH

462,908

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Interest received 17,179 Net cash inflow from returns on investments and servicing of finance

2013 £

(190,995) ----------------------------------

287,935

8,035

==================================

RECONCILIATION OF NET CASH FLOW MOVEMENT TO MOVEMENT IN NET FUNDS 2014 £ Increase in cash in the period 287,935

2013 £ 8,035

----------------------------------

-----------------------------

Change in net funds Net funds at 1 January 2014

287,935 1,777,568

8,035 1,769,533

--------------------------------------------

Net funds at 31 December 2014

2,065,503

1,777,568

============================================

The notes on pages 18 to 30 form part of these financial statements.

- 16 -

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE CONSOLIDATED CASH FLOW STATEMENT YEAR ENDED 31 DECEMBER 2014 ANALYSIS OF CHANGES IN NET FUNDS 1 Jan 14 Cash flows £ £ 1,777,568 287,935

Cash in hand and at bank

============================================

==================================

The notes on pages 18 to 30 form part of these financial statements.

- 17 -

31 Dec 14 £ 2,065,503 ============================================

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 1.

ACCOUNTING POLICIES Basis of accounting The financial statements have been prepared under the historical cost convention, except for investments which are included at market value, in accordance with applicable United Kingdom accounting standards, the requirements of the Statement of Recommended Practice 'Accounting and Reporting by Charities' issued in March 2005 (SORP 2005) and the Companies Act 2006. Consolidation The consolidated financial statements incorporate the financial statements of the charitable company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. As a consolidated statement of financial activities (incorporating the income and expenditure account) is published, a separate statement of financial activities for the parent company is omitted from the group consolidated financial statements by virtue of section 408 of the Companies Act 2006. Donations and fundraising All incoming resources in the form of cash have been included in income. Donations and fundraising income are included in the statement of financial activities on a receipts basis. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Donated assets are included at a valuation by the trustees. Legacies are included in the statement of financial activities where the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Grants Grants, including grants for the purchase of fixed assets are recognised in the statement of financial activities in the year in which they are receivable. The grants receivable have been included as voluntary income as these have been provided for core funding. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Investment income Income from investments is credited to the income and expenditure account on a receipts basis, gross of income tax where applicable. Fund accounting The unrestricted fund consists of funds that the charity may use for its purposes at its discretion. The restricted fund represents funds that are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. Resources expended Charitable expenditure comprises costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be directly allocated to such activities and costs of an indirect nature necessary to support them. Expenditure has been charged to the income and expenditure account on an accruals basis. Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes. Governance costs are those incurred in connection with meeting the constitutional and statutory requirements of the charity and include audit fees.

- 18 -

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 1.

ACCOUNTING POLICIES (continued) All costs have been allocated between expenditure categories in proportion to the usage that the trustees deem appropriate for that particular charitable activity. Fixed assets All fixed assets including investments are initially recorded at cost. Depreciation Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: Hospice land and buildings Furniture and equipment Leasehold property improvements Motor vehicles

20 and 40 years straight line 15% and 25% reducing balance 10% straight line 25% reducing balance

No depreciation has been provided for on the hospice land as it is kept in a sound state of repair and in the opinion of the trustees the residual value is so high and the useful economic life is so long that the depreciation charge would be immaterial. The carrying values of tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Operating lease agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. Pension costs Pension contributions are included in the statement of financial activities in the period to which they relate. Outstanding pension contributions at the balance sheet date are included within other creditors. Deferred taxation Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. Financial instruments Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its liabilities.

- 19 -

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 2.

VOLUNTARY INCOME

Donations Legacies Grants receivable CCG grant - adult CCG grant - children CCG grant - pension NHS England grant - children Department of Health (section 64) grant - new build Cumbria and Lancashire End of Life Network - "Six Steps" Training grants CCG project funding - "Deciding Right" Other income Pharmaceutical recharges to NHS Cumbria CCG

Unrestricted Funds £ 483,353 907,802

457,691 104,039 37,791 216,520

457,691 104,039 37,791 212,375

–

149,562

116,195

– 8,140

– –

– 8,140

78,837 3,270

–

51,334

53,000

–

80,221

82,472

--------------------------------------------

1,375,991

2,775,286

2,406,129

============================================

INCOMING RESOURCES FROM ACTIVITIES FOR GENERATING FUNDS Unrestricted Total Funds Funds 2014 £ £ 265,257 265,257 152,981 152,981 403,085 403,085

Shop sales Fundraising events Lottery sales

----------------------------------

--------------------------------------------

1,082,385

==================================

============================================

Unrestricted Total Funds Funds 2014 £ £ 17,179 17,179

Total Funds 2013 £ 11,924

==================================

INVESTMENT INCOME

Bank interest receivable

=============================

Total Funds 2013 £ 295,008 346,188 441,189

821,323

821,323 4.

Total Funds 2013 £ 733,162 527,297

– – – –

1,399,295 3.

Restricted Total Funds Funds 2014 £ £ 762,186 278,833 – 907,802

=============================

Restricted Total Funds Funds 2014 £ £

Total Funds 2013 £

INCOMING RESOURCES FROM CHARITABLE ACTIVITIES Unrestricted Funds £ Sale of goods/services as part of direct charitable activities

33,189 =============================

- 20 -

2,629

35,818

41,621

========================

=============================

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 6.

OTHER INCOMING RESOURCES Unrestricted Total Funds Funds 2014 £ £ 3,288 3,288 – – 607 607

Solar energy income Insurance claims Sundry income

------------------------

3,895 ========================

Total Funds 2013 £ 3,933 250 250

------------------------

3,895

4,433

========================

FUNDRAISING TRADING: COST OF GOODS SOLD AND OTHER COSTS Unrestricted Total Funds Funds 2013 £ £ 155,341 155,341 200,877 200,877

Shop expenditure Lottery expenditure

Wages and salaries Fundraising costs

- 21 -

Total Funds 2012 £ 127,788 209,122

----------------------------------------

--------------------------------------

---------------------------------

356,218

336,910

140,119 40,348

145,493 56,632

-------------------------------------

180,467

202,125

-------------------------------------

------------------------------------

536,685

539,035

====================================

===================================

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 8.

COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE

Costs directly allocated to activities: Clinical salary costs Medical and family support salaries Nursing salaries Direct clinical costs Medical supplies Uniforms Training Overheads Property and equipment costs Travel and subsistence Legal and professional fees Telephone Sundry expenses Advertising Stationery and printing Subscriptions and publications Depreciation (Profit)/Loss on disposal of fixed assets

In-patients £

Day Services £

256,910 769,368

29,046 78,020

48,080 472,069

334,036 1,319,457

301,366 1,285,395

70,347 723 5,604

8,276 – –

4,138 874 2,403

82,761 1,597 8,007

98,499 967 14,653

13,147 3,669 – 826 – 2,031 840 456 12,211

– – – – – – – – –

16,195 1,958 – 15 – 185 986 551 31,859

29,342 5,627 – 841 – 2,216 1,826 1,007 44,070

18,381 5,440 120 749 1,847 457 657 967 46,350

Total directly allocated costs

–

--------------------------------------------

(54) --------------------------------------------

Children’s Total Funds Total Funds Hospice 2014 2013 £ £ £

(54)

802

1,136,078

115,342

579,313

1,830,733

1,776,650

--------------------------------------------

- 22 -

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 8.

COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE (continued) In-patients £

Day Services £

2,632 1,561 10,481

267 158 1,064

1,342 796 5,344

4,241 2,515 16,889

2,052 1,480 7,512

270,989 3,935 2,237 58,100

27,511 399 227 5,898

138,178 2,006 1,141 29,625

436,678 6,340 3,605 93,623

394,361 3,340 3,536 101,897

28,247 11,580 64,494 6,607 10,174 110,963 14,651 1,907 5,540 8,383 8,919 67,259

2,867 1,176 6,548 671 1,033 11,265 1,487 194 562 851 905 6,828

14,399 5,905 32,886 3,369 5,188 56,581 7,471 973 2,825 4,275 4,548 34,296

45,513 18,661 103,928 10,647 16,395 178,809 23,609 3,074 8,927 13,509 14,372 108,383

47,811 14,742 91,756 8,779 8,385 166,601 27,629 2,282 4,311 7,038 15,133 92,203

Support costs allocated to activities: Clinical costs Medical supplies Uniforms Training Overheads Admin and support salaries Advertising Bank charges Catering salaries Catering supplies and cleaning General cleaning supplies Housekeeping salaries Legal and professional fees Postage Property and equipment costs Stationery and printing Subscriptions and publications Sundry expenses Telephone Travel and subsistence Depreciation Loss on disposal of fixed assets Total support costs

Children’s Total Funds Hospice 2014 £ £

Total Funds 2013 £

–

8,303

--------------------------------------------

1,009,151

688,659

69,911

351,148

1,109,718

--------------------------------------------

1,824,737

185,253

930,461

2,940,451

2,785,801

============================================

Unrestricted Total Funds Funds 2014 £ £ 3,718 3,718 224 224 263 263

Total Funds 2013 £ 3,518 – 350

GOVERNANCE COSTS

Audit fees Corporation tax Trustee indemnity insurance

------------------------

4,205

3,868

========================

10. NET INCOMING RESOURCES FOR THE YEAR This is stated after charging: 2014 £ 154,435

Depreciation Auditors' remuneration: - audit of the financial statements

- 23 -

2013 £ 140,687

3,718

3,518

==================================

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 11. STAFF COSTS AND EMOLUMENTS Total staff costs were as follows: 2014 £ 2,211,657 161,112 143,003

Wages and salaries Social security costs Other pension costs

2013 £ 2,131,805 156,335 122,369

--------------------------------------------

2,515,772

2,410,509

============================================

Particulars of employees: The average number of employees during the year, calculated on the basis of full-time equivalents, was as follows: 2014 2013 No No Number of production staff 6 6 Number of fundraising 8 7 Number of administrative staff 14 13 Number of nursing staff 76 73 Number of house services staff 15 16 ---------------

---------------

119

115

===============

The trustees were not entitled to and did not receive any remuneration or expenses during either year. The number of employees whose remuneration for the year fell within the following bands, were: 2014 2013 No No £60,000 to £69,999 1 1 ===============

===============

During the year pension contributions for this staff member amounted to £8,365 (2013 - £8,662). 12. EXCESS OF INCOME OVER EXPENDITURE OF THE PARENT COMPANY The parent company’s excess of income over expenditure for the year was £172,384 (2013: £217,871).

- 24 -

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 13. TANGIBLE FIXED ASSETS GROUP Hospice Furniture land and and buildings equipment £ £

Leasehold property improvements £

Motor vehicles £

Total £

12,944 – –

65,486 36,983 (25,732)

5,615,772 195,403 (29,038)

COST At 1 January 2014 Additions Disposals

4,745,270 119,943 – --------------------------------------------

----------------------------------

-----------------------------

--------------------------------------------

At 31 December 2014

4,865,213

827,243

12,944

76,737

5,782,137

============================================

==================================

=============================

============================================

DEPRECIATION At 1 January 2014 Charge for the year On disposals At 31 December 2014 NET BOOK VALUE At 31 December 2014 At 31 December 2013

974,800 105,870 –

792,072 38,477 (3,306)

573,141 36,107 (3,127)

4,354 1,227 –

49,909 11,231 (22,535)

1,602,204 154,435 (25,662)

--------------------------------------------

----------------------------------

------------------------

-----------------------------

--------------------------------------------

1,080,670

606,121

5,581

38,605

1,730,977

============================================

==================================

========================

=============================

============================================

3,784,543

221,122

7,363

38,132

4,051,160

============================================

==================================

========================

=============================

============================================

3,770,470

218,931

8,590

15,577

4,013,568

============================================

==================================

========================

=============================

============================================

Hospice Furniture land and and buildings equipment £ £

Motor vehicles £

Total £

59,736 36,983 (25,732)

5,590,959 195,208 (25,732)

COMPANY

COST At 1 January 2014 Additions Disposals

4,745,270 119,943 – --------------------------------------------

----------------------------------

-----------------------------

--------------------------------------------

At 31 December 2014

4,865,213

824,235

70,987

5,760,435

============================================

==================================

=============================

============================================

974,800 105,870 –

568,730 35,746 –

DEPRECIATION At 1 January 2014 Charge for the year On disposals At 31 December 2014 NET BOOK VALUE At 31 December 2014 At 31 December 2013

785,953 38,282 –

45,735 10,837 (22,535)

1,589,265 152,453 (22,535)

--------------------------------------------

----------------------------------

-----------------------------

--------------------------------------------

1,080,670

604,476

34,037

1,719,183

============================================

==================================

=============================

============================================

3,784,543

219,759

36,950

4,041,252

============================================

==================================

=============================

============================================

3,770,470

217,223

14,001

4,001,694

============================================

==================================

=============================

============================================

- 25 -

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 14. INVESTMENTS Movement in market value 2014 £ Market value at 1 January 2014 Market value at 31 December 2014 Historical cost at 31 December 2014

2013 £ 2

---------------

===============

The above investment is unlisted and represents 100% of the issued ordinary share capital of Eden Valley Hospice (Shop) Limited, a company registered in England and Wales. The company's principal activity is the running of a lottery and a number of shops selling donated goods. The aggregate capital and reserves of Eden Valley Hospice (Shop) Limited at 31 December 2014 were as follows: Capital and reserves Loss for the year

£241 £nil

The profit for the year is stated after £312,133 (2013 - £399,370) was covenanted to Eden Valley Hospice, Carlisle. 15. STOCKS

Stock

GROUP 2014 £ 4,049 ==================================

2013 £ 8,842 ==================================

COMPANY 2014 £ – ==================================

2013 £ – ==================================

16. DEBTORS

Trade debtors Other debtors Prepayments and accrued income

GROUP 2014 £ 6,501 8,593 75,755

2013 £ 129,453 – 51,176

COMPANY 2014 2013 £ £ 7,268 130,000 99,247 – 68,161 45,394

------------------------------------------

---------------------------------------

-------------------------------------

90,849

180,629

174,676

175,394

==========================================

=========================================

===========================================

======================================

- 26 -

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 17. CASH AT BANK AND IN HAND

Cash at bank and in hand

GROUP 2014 2013 £ £ 1,777,568 2,065,503 ================================================

=========================================

COMPANY 2014 2013 £ £ 1,921,117 1,737,443 =================================================

==========================================

18. CREDITORS: Amounts falling due within one year

Trade creditors PAYE and social security Other creditors Accruals and deferred income

GROUP 2014 £ 44,658 39,764 18,849 320,838

2013 £ 9,293 44,776 14,072 297,174

COMPANY 2014 2013 £ £ 39,560 8,577 39,764 44,776 18,625 14,072 251,885 232,279

------------------------------------------

--------------------------------------

-------------------------------------------

-------------------------------------

424,109

365,315

349,834

299,704

==========================================

=========================================

=============================================

======================================

Deferred income

Deferred income at 1 January 2014 Resources deferred in the year Amounts released from previous years

2014 £ 265,919 302,059 (265,919)

2013 £ 366,000 265,919 (366,000)

----------------------------------

Deferred income at 31 December 2014

302,059

265,919

==================================

At the balance sheet date the charity held funds received in advance for grants relating to the next financial year which amounted to £204,356. In addition the charity held donations received from the BBC Jigsaw appeal relating to the next financial year which amounted to £30,000. Upon consolidation, the charity also held lottery income in advance of future draws amounting to £67,703. 19. PENSIONS Pension contributions are charged to the income and expenditure account in the period to which they relate and during the period amounted to £143,003 (2013 - £122,369). At the balance sheet date £18,004 (2013 - £12,698) was included in other creditors in respect of outstanding pension contributions.

- 27 -

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 20. COMMITMENTS UNDER OPERATING LEASES At 31 December 2014 the company had annual commitments under non-cancellable operating leases as set out below. Assets other than land and buildings

Operating leases which expire: Within 2 to 5 years After more than 5 years

2014 £

2013 £

11,066 13,944

9,213 12,514

-----------------------------

25,010

21,727

=============================

Land and buildings

Operating leases which expire: Within 1 year Within 2 to 5 years After more than 5 years

- 28 -

2014 £

2013 £

500 13,152 20,000

13,180 1,152 20,000

-----------------------------------

33,652

34,332

================================

=============================

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 21. RESTRICTED FUNDS

Restricted capital funds Hospice land Hospice building – children’s wing Furniture and equipment Ambulance Nurse call system Day care extension and improvements Reception renovations Minibus Adult in-patient refurbishment Department of Health (section 64) grant – front entrance extension Other restricted fund projects Department of Health (section 64) grant – new build Department of Health (section 64) grant – ambulance Walled garden Together for Short Lives Wallace & Gromit Restricted income funds Donations in relation to children’s unit Pharmaceutical recharges to NHS Cumbria CCG CCG grant – adult CCG grant – pension CCG grant – children NHS England – children Cumbria and Lancashire End of Life Network – “Six Steps” CCG project funding – “Deciding Right” Other restricted fund projects BBC Jigsaw appeal Flat renovation project

Total restricted funds

Balance at 1 Jan 2014 £

Incoming Resources £

Outgoing Resources £

Balance at 31 Dec 2014 £

650,000 1,188,261 12,101 3,159 4,586

– – – – –

– (37,365) (1,815) (3,159) (688)

650,000 1,150,896 10,286 – 3,898

123,987 33,154 4,670 21,990

– – – –

(3,621) (969) (1,168) (750)

120,366 32,185 3,502 21,240

464,227 135,500

– –

(12,221) (4,421)

452,006 131,079

116,195

112,579

(5,719)

223,055

– 40,000 – –

36,983 – 11,983 4,995

(7,853) – (691) (419)

29,130 40,000 11,292 4,576

--------------------------------------------

2,797,830

166,540

(80,859)

2,883,511

–

134,236

(134,236)

–

– – – – –

80,221 457,691 37,791 104,039 216,520

(80,221) (457,691) (37,791) (104,039) (216,520)

– – – – –

54,749

–

(16,026)

38,723

25,818 10,503 – –

51,334 25,337 94,911 10,000

(27,708) (23,557) (14,911) (10,000)

49,444 12,283 80,000 –

--------------------------------------------

91,070

1,212,080

--------------------------------------------

2,888,900

1,378,620

============================================

- 29 -

--------------------------------------------

(1,122,700) --------------------------------------------

(1,203,559) ============================================

--------------------------------------------

180,450 --------------------------------------------

3,063,961 ============================================

EDEN VALLEY HOSPICE, CARLISLE COMPANY LIMITED BY GUARANTEE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 22. UNRESTRICTED INCOME FUNDS GROUP

General Funds

Balance at 1 Jan 2014 £ 2,726,392

Incoming resources £ 2,274,881

============================================

Balance at 1 Jan 2014 £ 2,725,929

Incoming resources £ 1,918,663

============================================

Outgoing Balance at resources 31 Dec 2014 £ £ (2,277,782) 2,723,491 ============================================

============================================

COMPANY

General Funds

Outgoing Balance at resources 31 Dec 2014 £ £ (1,921,340) 2,723,252 ============================================

============================================

23. ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible Net current fixed assets assets £ £ Restricted Income Funds: Restricted capital funds Restricted income funds

2,883,511 –

– 180,450

Total £ 2,883,511 180,450

--------------------------------------------

----------------------------------

--------------------------------------------

2,883,511

180,450

3,063,961

--------------------------------------------

----------------------------------

--------------------------------------------

Unrestricted Income Funds

1,167,649

1,555,842

2,723,491

--------------------------------------------

Total Funds

4,051,160

1,736,292

5,787,452

============================================

24. RELATED PARTY TRANSACTIONS No related party transactions were undertaken such are as required to be disclosed under Financial Reporting Standard 8. 25. COMPANY LIMITED BY GUARANTEE Every member of the company undertakes to contribute to the assets of the company, in the event of the same being wound up while he or she is a member, or within one year after he or she ceases to be a member, for payment of the debts and liabilities of the company contracted before he or she ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such amount as may be required not exceeding £1.

- 30 -