ST LUKE’S Hospice said this week that it is not in ‘financial crisis’ despite concerns raised by nursing staff.

Staff contacted the Guardian claiming donations had been lost on over-ambitious fundraising projects.

Concerns were raised after the most recent financial report showed the hospice to be £700,000 in the red, six senior figures - including the CEO and chairman - resigned, and redundancies were announced.

The hospice’s chief executive officer Andrea Ladeira, who was awarded a six-figure salary in 2015, handed in her resignation last Wednesday for ‘personal reasons’ and chairman Richard Parker has announced he will leave at the end of March.

Nursing staff, who say they fear for their jobs, are blaming a new approach of investing more money in lavish fundraising projects, which correlates with a trend since 2013 of the hospice beginning to post a loss each year.

One nurse cited the Bentley auction which was held last year and invited people to enter a raffle to win a personally customised Bentley.

The nurse said: “Many local people who have lost their loved ones at St Luke’s or received care themselves have been benefactors. Raising money and donating their time in good faith that the money has been utilised well.

“Huge amounts of donated funds were put into schemes such as the Bentley auction, which went pear-shaped and we lost money.”

Claire Langston, director of income generation and communications at St Luke’s Hospice, blamed Brexit on the low income from the Bentley auction.

“Our plan for the auction projected we would raise more income from the Bentley than actually proved to be the case,” she said.

“Sadly, the auction of the Bentley took place the day of Brexit announcement which had a marked downward effect on all the bids being placed at the Goodwood Festival of Speed event.

“This means we will complete the year with a larger than planned deficit.”

The latest financial figures for St Luke’s Cheshire Hospice, from the year ending March 2016, show a loss of £700,000.

The charity’s expenditure has increased from £3.39 million in 2013 to £5.61 million in 2016, but income has only increased from £3.63 million to 4.88 million in that time.

The Charity Commission has confirmed that it has launched an inquiry into the hospice’s finance’s.

A spokesman for the Charity Commission said: “The Commission is in contact with the trustees of St Luke’s Cheshire Hospice on issues raised regarding its financial management. As this case is still ongoing, we cannot comment further until a conclusion has been reached.”

However, St Luke’s Hospice says it is ‘not in financial crisis’.

Ms Langston said: “No, we are not in financial crisis. However, like many other charities we operate in a highly challenging fundraising environment.

“Our board of trustees developed a five-year finance plan to mitigate these challenges and to strengthen our ability to sustain our own future. Like all good organisations, we have continued to monitor the progress of our finance plans and we have also increased and diversified our fundraising activities.

“In order to deliver a balanced budget for the next financial year we are following best practice to review our income and expenditure, and to retain an appropriate level of financial reserves as advised by our governing body, the Charity Commission. Whilst we do this, minimising the impact on patient care remains our utmost priority.”

When asked about the latest loss of £700,000, Ms Langston said: “Our annual report and account for the 12 months ending March 31, 2016, details our planned deficit of 803k. As previously referred to, the board of trustees developed a five year plan to strengthen our ability to sustain our own future, which meant we had a planned deficit for three years.”

St Luke’s Hospice confirmed that it plans to make redundancies amounting to 4.49 full time equivalent roles.

The hospice employs 138 people, according to 2016 figures.

As well as the departures of the chairman and CEO, four trustees have left in the past two years, without completing their three years they are elected to serve.

Ms Langston said: “Trustees at St Luke’s are elected top serve a period of three years, meaning we always have a rolling programme of trustee recruitment, designed to ensure we have a balance of experienced and newer trustees.

“At present we have six trustees on the board, each at varying stages of their term in office. During the past 12 months, three further trustees have resigned from their positions. The recruitment process for replacements trustees with relevant skill sets is under way.”

Another nurse who spoke to the Guardian said: “The only people who matter are the patients and the nurses have worked so hard to make sure that the unsettled atmosphere doesn’t filter through to them. But we are in fear of our jobs and the people who spoken up have been shot down.”