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2021-03-31-accounts

Nazareth Care Charitable Trust

ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Charity Registration Numbers England & Wales: 1113666, Scotland: SC042374

Company Limited by Guarantee Registration Number: 05518564

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Contents

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS ........... 2 HERITAGE ........................................................................................................................................... 3 MESSAGE FROM THE CHAIR OF THE BOARD OF TRUSTEES AND CHIEF EXECUTIVE OFFICER ............ 4 INTRODUCTION .................................................................................................................................. 5 YEARLY REVIEW .................................................................................................................................. 5 TRUSTEES’ REPORT 31 MARCH 2021 .................................................................................................. 8 STRATEGIC REPORT .......................................................................................................................... 10 FINANCIAL REVIEW OF THE YEAR ..................................................................................................... 11 MANAGEMENT AND TRUSTEES ........................................................................................................ 15 INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF NAZARETH CARE CHARITABLE TRUST .......................................................................................................................... 21 GROUP STATEMENT OF FINANCIAL ACTIVITIES – YEAR ENDED 31 MARCH 2021 ............................ 25 CHARITY STATEMENT OF FINANCIAL ACTIVITIES – YEAR ENDED 31 MARCH 2021 .......................... 26 BALANCE SHEETS – 31 MARCH 2021 ................................................................................................ 27 GROUP STATEMENT OF CASH FLOWS – YEAR ENDED 31 MARCH 2021 ........................................... 28 PRINCIPAL ACCOUNTING POLICIES – YEAR ENDED 31 MARCH 2021 ............................................... 29 NOTES TO THE FINANCIAL STATEMENTS – YEAR ENDED 31 MARCH 2021 ...................................... 34

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REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS

Trustees

Sister Doreen Cunningham Chair Sister Rose Ita Doody Sister Teresa Bernadette Fallon Sister Madeleine Merriman Mr Paul Williams Mr James McAleenan Ms Margot Cronin Mr Donald West Sister Lilian Bashford Sister Anastasia Lenihan Father John Martin

resigned 02 November 2021 resigned 19 May 2021

resigned 25 October 2021 appointed 05 November 2021 appointed 29 July 2021

Senior Management - (SMT) r

Regional Superior Chief Executive Officer and Company Secretary Head of Finance Head of Finance Finance Director Director of Operations Head of HR Head of Corporate Services

Sister Doreen Cunningham Mr Richard Whitby Mr Ahmed Bangura Mrs Samantha Parker (14.04.2021 to 12.10.2021) John Graham (until 07.05.2021) Mr Mike Anderson Mrs Louise Graham Miss Alexandra Ispas

Administrative Details

Registered Office

Telephone

Larmenier Centre 162 East End Road London N2 0RU 020 8444 4427

Email Website

uk.administration@nazarethcare.com www.nazarethcare.uk.com

Company Registration Number Charity Registration Numbers

05518564 (England & Wales) 1113666 (England & Wales) SCO42374 (Scotland)

Auditor

Crowe U.K. LLP 55 Ludgate Hill London, EC4M 7JW

Bankers

Barclays Bank plc Acorn House 36 ‐ 38 Park Royal Road London NW10 7JA

Principal Solicitors

Stone King LLP 13 Queen Square Bath BA1 2HJ

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HERITAGE

The Congregation of the Sisters of Nazareth (“the Congregation”) is an international Roman Catholic religious Congregation consisting of 216 Sisters worldwide.

It was founded in Hammersmith, England in 1851 by Victoire Larmenier, where its Generalate (governing body) is still located. It is divided into five Regions across the world: American, Australasian, Ireland, South African and United Kingdom (UK Region).

Victoire and five companions came to London in April 1851. At that time England was predominantly Protestant. Catholics, for the most part, were in a state of extreme poverty and everywhere the aged Catholic poor were forced to seek shelter in workhouses.

Their first house was in Brook Green and the first resident was received on 14 April 1851. From there the Sisters collected alms and food around London in order to care for the old and young who they took into their Home.

As the number of people requiring care and shelter increased each year the need for larger and more suitable premises became urgent. In 1856 land was bought at Hammersmith for the sum of 3,000 guineas, most of which was donated by generous benefactors.

On 9 October 1857 the first group of elderly people and children were moved into the new building which was named Nazareth House. From these beginnings the Congregation spread around the world. Most of the work of the Congregation takes place within “Nazareth Houses” which are substantial buildings operated mainly as care homes for older people.

Nazareth Care Charitable Trust (NCCT or the Trust) is a charitable company limited by guarantee and is the operational arm of the Congregation, working in partnership with The Congregation of the Sisters of Nazareth Charitable Trust, providing care for the elderly, disabled and terminally ill in 12 care homes throughout England, Scotland and Wales.

It also provides nursery school education on one site, retirement villages situated in Glasgow, Blackburn and Plymouth and supports other religious orders in caring for their older sisters.

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MESSAGE FROM THE CHAIR OF THE BOARD OF TRUSTEES AND CHIEF EXECUTIVE OFFICER

These are unprecedented times. Humanity will never forget the challenges brought by the Covid-19 pandemic. COVID-19 threatened the lives of our residents & employees and at its peak reduced the ability of our residents to contact their loves ones. Human contact resorted to an image behind a mask or screen. As expected, the financial impact that emerged from the pandemic will continue to be felt well into the 2021/22 fiscal year. The restrictions put in place to stop the spread of the virus meant that many of our homes spent most of 2020/21 unable to admit new residents for long periods of time thus affecting our turnover.

In any case, Nazareth Care Charitable Trust (NCCT) can look back at the last 18 months with pride. This was not the first time we have overcome challenges, but it was certainly the harshest in these over 150 years of existence. We firmly believe that the worse days are behind us. The senior management team under our leadership was able to swiftly adapt and persevered in the face of adversities.

One such example was when our senior management team identified the risk COVID-19 posed to our employees. Therefore, in March 2020, the charity took the strategic view that Personal protective equipment (“PPE”) coupled with strict infection control policies would be the best way to protect residents and employees from infection. The charity then purchased tens of thousands of PPE in stock very early on which meant that when the first COVID-19 wave hit the country, all of our staff had access to the correct PPE throughout the pandemic. Both management and employees had to find innovative ways for our residents to maintain contact with the relatives taking advantage of technology such as setting up Zoom calls, providing visiting cabins and facilitating window visits.

The scientific wonder of the COVID-19 vaccines was celebrated in all of our homes. Our residents and employees were prioritised by the government. The vaccine allowed our homes to allow face to face to visits again. As our homes adapted to the new world of living with COVID-19, the government made the decision that all front line care home employees in England must be fully vaccinated by November 2021 or be dismissed. The change in legislation created another problem to all care homes business: lack of available qualified staff. NCCT was fortunate that the number of employees, who opted not to get vaccinated was minimal. However, we have seen, like in many other businesses, a decline in new applications since the new legislation was enacted threatening the viability of the care home sector when it comes to staffing.

Over the last twelve months the charity has invested in its infrastructure. The charity has started a bold plan to update its aging telecommunications systems, as well as replacing its Digital Care system, Finance system & Payroll system. This new infrastructure will improve output and reduce input improving the quality of the service we provide.

The charity expected the fiscal year 2020/21 to be a challenging one before it knew of the COVID-19 pandemic, as the charity had posted a deficit in excess of £1.6m in 2019/20 fiscal year.

However, with strong leadership and strategic planning the charity reached a surplus for the first time in 3 years. The charity’s operating performance improved by almost £2m in the worst financial year of over a century.

SISTER DOREEN CUNNINGHAM Chair of the Board of Trustees

RICHARD WHITBY Chief Executive Officer

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INTRODUCTION

Following the 2006 General Chapter of The Congregation of the Sisters of Nazareth, the concept of Nazareth Care Charitable Trust began to take shape. The purpose of the Trust was to carry the mission of the Sisters of Nazareth forward into the future, even if there were fewer Sisters in active service. To successfully achieve this, it was vital that all staff had a clear understanding of the mission and the values of the Sisters, which have made the organisation the success it has been for the past 160 years.

The core values of the Sisters: patience, hospitality, love, respect, compassion and justice are practiced by both Sisters and staff alike in everything they do and set the bar for the excellent quality of care provided to both children and the elderly. Each house strives to incorporate these six values in simple, different, and creative ways.

The facilities operated and managed by Nazareth Care Charitable Trust include care homes, retirement villages and nurseries. All of our services are genuinely an integral part of the community in which they operate. Whether it is a young child or an elderly person we actively encourage everyone to live their lives to their full potential, both within our facilities and the wider community. Every Nazareth House encourages members of the wider local community to participate as either a “Friend of Nazareth House”, a volunteer or as a parishioner using the church facilities. N T O D U C T I O N

Many of the buildings operated by Nazareth Care Charitable Trust on behalf The Congregation of the Sisters of Nazareth Charitable Trust are the original Victorian buildings, established either by the foundress or very early in the history of the Sisters of Nazareth.

For the Charity to provide high quality care in the best possible environment, we continue to invest in the upgrade of properties.

The Regional Team are confident the planned upgrade or the site at Hammersmith will start in 2022 which is an important site for the Sisters as this was the site where the foundress began the Congregation.

YEARLY REVIEW

The 2020/21 fiscal year saw a revival in our charity’s financial performance. We posted a surplus of £374,120 which was an improvement above £2m compared to the previous financial year. The strength of the improvement is remarkable as 2020/21 will go down in history as the most challenging year on record for the business.

The SMT of NCCT carried out a financial stress test of businesses within the NCCT group from which actions and targets were set for each Manager of those businesses to ensure 2021/22 would be a better performing financial year for NCCT group. The SMT now monitors the business on a weekly and monthly basis against key performance indicators.

COVID-19

It has been a challenging year for our care homes and nursery. The COVID-19 pandemic meant our nursery was forced to shut for several months. COVID-19 had the biggest impact on the running of our care homes. Under government guidance, we were forced to stop visitors entering the homes for several months. This was a devasting time for our residents, their families, and our staff as we had no idea how long the restrictions would last. Only when the vaccine rollout started that visiting in our homes went back to some sort of normality.

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Occupancy

The charity occupancy was impaired during the 2020/21 fiscal year, as we spent many months in lockdown. This meant our occupancy dropped to 618 occupied beds representing 85% of total capacity, levels we have never seen before in our charity history. It was not until the end of Q1 2021/22 that our occupancy started stabilising at 88% capacity. The COVID-19 government grants helped maintain our financial stability during this challenging time.

Infrastructure

In 2021 we started the migration to a fully integrated Staff Roster, Time&Attendance, Income Processing & Finance, Payroll & Compliance system, Care Management system and Telecommunication upgrade. The new systems will bring significant improvements and cost saving opportunities as follows.

Enable significant savings with staff cost using Coldharbour eRoster + T&A

Increase cash flow & reduce admin overhead using Coldharbour Income Processing

Provide timely BI & data analytics to all levels of the business

Reduce costs with Civica Payroll

Provide an integrated audit & compliance framework

WIFI-Telephone Upgrade

Regulatory

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The ethos of Nazareth Care Charitable Trust is distinguished by the Core Values of the organisation: Justice, Patience, Hospitality, Compassion, Love and Respect.

This philosophy of care involves every member of the caring team working with a common aim to improve the quality of life of each of our service users.

The aim of Nazareth Care Charitable Trust is to provide settings where people are cared for, supported and valued within an environment that promotes the health and wellbeing of our service users. Our aim is to provide all our service users with a safe place to be cared for.

We strive to promote an environment where people feel secure, comfortable, and valued. Our aim is to provide care that meets the needs of each person as an individual and our care is always informed by the best available evidence-based research. What this means to us is that all parties involved in a person’s care are consulted where possible or applicable.

Regulatory inspections in England, Wales & Scotland stopped visiting homes during the first COVID-19 wave. During the second wave the regulators carried short site visits. It was not until 2021, that inspections went back to pre-pandemic scope.

Our Staff and Volunteers

It goes without saying that we are extremely proud of our employees and how they performed over 2020/21. The care homes’ staff faced the greatest crisis ever in history. The pandemic posed a risk to life for them and the residents in our homes. Our staff were creative, brave, resilient and ensured our residents’ safety was paramount whilst still finding ways to support them to maintaining relationship with their families.

Nazareth Care Charitable Trust strives to provide an excellent working environment for our staff. We aim to provide an open and inclusive environment where every member of staff is empowered to make a real difference. As an employer we acknowledge that our staff are the biggest asset to our charity. Furthermore, 2020/21 has been particularly challenging for the health and wellbeing of our employees. Fulfilling the duties of a good employer, we have continued to invest in our staff taking a series of measures that include: annual uplift to all employees for the second consecutive year; we partnered with a health & wellbeing company to ensure all of our employees and families have access to free counselling. As well as rolling out a new pay system which allows employees early access to their wages.

This year we have continued to implement the Government Apprenticeship levy. We currently have 8% of our workforce completing an apprenticeship and as we strive to improve the skills of our staff, we have rolled out role specific training for every job role in our care homes.

The majority of our houses also have a Friends of Nazareth group operating within them which is a team of dedicated volunteers that give their time for a number of causes within each home. Volunteers can be fundraisers or visitors. The Trust has recognised that if we are to continue to provide an excellent service to our residents against a backdrop of financial demands, we need to expand the use of volunteers to raise funds for those extra things that our elderly and children require.

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TRUSTEES’ REPORT 31 MARCH 2021

(INCORPORATING A STRATEGIC REPORT)

The Trustees, who are the trustees of the charitable company for the purpose of charity law and directors for the purpose of company law, present their statutory report together with the financial statements of Nazareth Care Charitable Trust (‘the Charity’) for the year ended 31 March 2021.

This report has been prepared in accordance with Part VIII of the Charities Act 2011 and constitutes a directors’ report for the purposes of company law.

The financial statements have been prepared in accordance with the principal accounting policies set out on pages 29 to 34 and comply with the charity’s Memorandum and Articles of Association, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Objectives and Activities

The Charity was established by the Congregation of The Sisters of Nazareth to assist the Sisters to maintain their mission which principally today sits with the care of older people through the provision of care homes and retirement villages in the United Kingdom. The Charity also manages a day nursery in Lancaster. The Trustees intend that the work of the Charity will enhance the quality of life of those who live in its homes whilst enabling them to retain to the maximum their dignity and independence.

For The Congregation of The Sisters of Nazareth Charitable Trust and Nazareth Care Charitable Trust, working together is all about people. The Sisters, the residents and their families and our staff together make a true Nazareth family. The Congregation of the Sisters of Nazareth Charitable Trust owns the estate, and the Sisters provide spiritual and pastoral support whilst Nazareth Care Charitable Trust operates the care homes and a day nursery.

When setting the objectives and planning the work of the Charity for the year, the Trustees have considered the Charity Commission’s general guidance on public benefit.

Objectives

Financial Stability: After several years of disappointing financial performances, the charity is focused on achieving financial stability. We have invested in a new care planning and accounting software to increase efficiency, minimise human errors and eliminate duplication in our processes. This will inturn lead to a reduction in staff time and hence staff cost. Budget monitoring is also going to be a key process going forward to ensure our spending is in line with occupancy levels.

Quality: The short-term goal of the charity is that the regulated inspection gradings will improve in 2022. The long term goal is for all of businesses to be graded as good or better within the next 18 months.

The Board and Senior Management team of Nazareth Care acknowledge COVID-19 may have an impact on achieving the objectives in the short term but feel the charity can achieve improvements in these areas in the year ahead.

Care homes

There are 12 care homes operated by Nazareth Care Charitable Trust within England, Scotland and Wales (i.e. the Region), some providing nursing care for clients with complex needs, whilst all provide support to those people requiring social care. We provide accommodation for 726 residents, all single room accommodation 55% of our current residents receive state funding to pay for care.

At 31 March 2021, the Charity operated care homes in the following locations:

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The care homes aim always to provide excellent standards of care, and this is evident to see when looking at the relationships staff, residents and families have built.

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STRATEGIC REPORT

In Our Care Homes

Over the last 2 years our homes have been working extremely hard against COVID-19 getting into our homes. COVID-19 is the biggest risk our care homes have ever faced, and we are extremely proud of the response as an organisation as well as our staff during this unprecedented national crisis. We are proud that by taking early decisions we were able to provide full PPE throughout the pandemic. We feel this had an impact on the level of COVID-19 related deaths that we had experienced, and we were blessed that our homes experienced lower COVID-19 related deaths than the national average.

Subsidiaries

‐ Two of the Charity’s wholly owned subsidiaries; NRV Development (Blackburn) Limited and NRV Development (Plymouth) Limited are development companies providing retirement village apartments for sale at the respective sites.

In order to provide a management and service company for each of our villages we have established three individual companies: NRV (Management) Plymouth Limited, NRV Blackburn Limited and NRV (Management) Glasgow Limited.

The Charity established Nazareth Catering Limited in 2012 and this has been used to produce food in bulk for sale in the restaurants of the retirement villages.

In order to enhance the care provided at the care villages in Blackburn and Plymouth through personal care services, the Charity established Nazareth Home Care Limited on 25 March 2013. Currently Nazareth Home Care Limited Company only works with other religious orders to provide management services to those organisations who did not have sufficient resources to manage care home operations within today’s environment. This company currently works with one religious order on two sites.

The Future of Nazareth Care Charitable Trust

The future of Nazareth Care Charitable Trust is bright. The charity made tough decisions in 2020/21 which will ensure the charity is sustainable in the years ahead. The charity has a strong balance sheet and recent regulatory visits now reflect the hard work and positive change that the SMT and General Managers have input.

Our aims for the future include sustainable improvement of regulatory ratings and maximising the building layout in order to increase bed capacity. To that extent we have invested heavily in new quality and compliance systems and have developed 5 year buildings plans to maximise the estate’s potential. We are aiming to increase capacity by approximately 8% over the next 5 years as well as upgrading our facilities, equipment and grounds, in line with area demand and operations efficiency.

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FINANCIAL REVIEW OF THE YEAR

Income and Expenditure

A summary of the results can be found on page 25 of the attached financial statements.

Financial Position

The Group’s income increased from £28.2 million to £29.2 million. Within this total, £25.2 million represents the income in connection with the provision of residential and care services for older people and £0.5 million represents the income from the provision of nursery services. Income from commercial trading through subsidiaries amounts to £1.4 million.

Expenditure decreased from £29.8 million to £28.8 million at the Group level. Within this total, £27 million represents the expenditure in connection with the provision of residential and care services for older people and £0.4 million represents the expenditure for the provision of nursery services. £1.4 million represents expenditure in respect to the commercial trading operations of the subsidiaries.

The day to day operations of the Charity resulted in a surplus of approximately £0.3 million for the year and the Group operations resulted in a surplus of £ 0.4 million. This was made possible through receipt of a government grant of £1.4 million from the furlough and covid grant scheme, including infection control grants from Local Authorities.

The total net assets of the Group at 31 March 2021 amounted to £8.5 million whilst those of the Charity totalled £8.5 million.

Three of our subsidiary companies are in deficit:

NRV (Development) Blackburn Limited

This is the development company responsible for developing the site at Blackburn and the sale of its properties. Currently, the company is in deficit by approximately £24,362 due largely to the time it is taking to sell the properties.

The sales team continues to work extremely hard to sell the remaining apartments. However, this has not been an easy process with many flats reserved but potential buyers are experiencing difficulties in selling their existing properties. However, the company was able, to sell two properties resulting in a profit of £123,763 have helped reduced the cumulative deficit from £148,124 to £24,362.

Whilst all bank loans for this development have been repaid there continues to be a loan outstanding to the Charity from the Congregation of the Sisters of Nazareth Generalate. This charity is the overarching charity for the Congregation and was responsible for the plans and design of the Blackburn site before it was handed over to Nazareth Care Charitable Trust in 2011. This outstanding loan is being paid back as quickly as possible whilst taking into consideration the need to cover expenses which include voids, service charges, standing charges for energy, council tax and sales and marketing.

It is anticipated that the project will at best break even or make a slight deficit at the end of the sales process.

NRV Development (Plymouth) Limited

This is the development company responsible for developing the site at Plymouth and the sale of its properties. Currently, the company is in deficit by approximately £44,584. Development was completed on this site during 2015/16 and the final apartment was sold in September 2017. The company directors are working hard to close the company as soon as possible.

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Nazareth Catering Limited

This is a company that produces food for sale in the restaurants of the retirement villages. The company made a profit £41,082 of which £16,353 was donated as gift aid to NCCT and the rest used to cover the defict of £24,728 from last year.

Reserves Policy

At 31 March 2021, the Charity had free reserves of £5.8 million and the Group had free reserves of £5.7 million. The tangible fixed assets fund of about £2.7 million represents the net book value of the Group’s and Charity’s tangible fixed assets. These assets are essential to the continued mission of the Group and Charity and include the improvements to care homes and the furniture and equipment used in those care establishments.

The general fund comprises those assets not designated by the Trustees or restricted in their application as at 31 March 2021. The fund includes monies to cover temporary shortfalls in income due to timing differences and amounts to enable the Group and Charity to cope with unforeseen emergencies. At 31 March 2021, the fund equated to three months’ operating costs.

The Trustees have agreed to work towards a reserve of funds equivalent to six months of operating costs in the knowledge that a larger positive reserve balance needs to be built up in due course. The restructure that has occurred over the past few years now needs to be consolidated and a period of reflection is required so that the Trustees may assess the future needs of the Group and Charity in the light of their mission and plans, in particular future refurbishment and development requirements. This continues to be considered an appropriate target in light of the new environment operating in as a result of covid-19. Any surplus taxable funds arising in the subsidiaries may, from time to time, be donated to the Charity by Gift Aid.

Going Concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

Accounting standards require the Board of Trustees to consider the appropriateness of the going concern basis when preparing financial statements. Nazareth Care Charitable Trust (NCCT) posted a surplus of £374,120 after enduring several loss making years.

In order to consider the appropriateness of the going concern basis, NCCT management has prepared and reviewed a scenario analysis looking at the worst case, best case and expected case scenarios.

In a worst case scenario, whilst it would seem that the Charity's reserves and cash position impacted significantly, it would not affect the Charity’s ability to meet Its liabilities over the medium term. With a net cash position of £4,242,332 at 31 March 2021 and forecast gross balance to 31[st] March 2023 of £2m evidencing that it has adequate resources to continue operational activities for the foreseeable future and that it has sufficient cash to meet all financial commitments.

The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above under Critical accounting estimates and areas of judgement heading.

With regard to the next accounting period, the year ending 31 March 2022, the most significant issues that may affect the carrying value of the assets held by the Charity are the level of local and central government

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funding for residential and nursing care of older people and the cost of implementing the changes to the regulatory environment affecting care homes generally.

Risk Management

The Trustees, with the assistance of the Charity’s senior management team, have identified and considered the key risks to which the Charity and its subsidiaries might be exposed to, and which are captured in a risk register. The risks include both those relating to the operation of the care homes and nursery and those relating to the development of retirement villages and the sale and subsequent resale of apartments et cetera. Actions are agreed to monitor and mitigate the risks identified. At each Trustee meeting, the Trustees and management discuss the latest view of the risk landscape to ensure that as far as possible all reasonable steps have been taken to identify, mitigate and manage known and emerging risks.

Below are three key risk factors faced by the Charity and the table demonstrates how the risks are managed.

1. COVID-19 poses a risk to our residents and staff safety

Actions we have taken to mitigate the risk:

Covid-19 is an invisible and deadly virus that poses a risk to both our residents and staff. We cannot remove the risk that the virus presents, however, we have taken every step possible to reduce the exposure of the virus in our homes.

Steps taken:

2. Financial Stability

Action we have taken to mitigate the risks:

This year the Charity has taken a major step forward towards financial stability after three years of operating in deficit, I am pleased to report that this year we posted a surplus of £0.4 million. Our occupancy was impacted due to COVID-19 embargoes. However, through strong financial management and strategic planning we were able to finish the financial year in a surplus. We now need to build on the foundations we have established throughout this financial year. We expect 2021/22 to be a challenging period as COVID-19 restrictions have prevented us from fully opening till the end of Q1 in 2021/22. The executive management team is always looking for creative ways to improve our financial performance. We have invested in a new care planning and accounting software to increase efficiency, minimise human errors and eliminate duplication in our processes. This will inturn lead to a reduction in staff time and hence staff cost. Budget monitoring is also going to be a key process going forward to ensure our spending is in line with occupancy levels.

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3. IT Infrastructure

Action we have taken to mitigate the risk:

This year we have invested heavily in our IT infrastructure. We have rolled out new systems for: payroll, rostering, compliance, care plans and medication management to name a few. We have also upgraded our WIFI and telephone systems across our portfolio. Our new infrastructure will allow greater control of our business and consequently improving performance. However, the rolling out of new systems bearing in mind the size and scale we have, comes with its challenges. As we move into the new year, we aim to focus on refining our systems and processes to take advantage of their benefits and maximise functionality.

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MANAGEMENT AND TRUSTEES

Trustees Responsibilities

The Trustees (who are also directors of the Charity for the purposes of company law) are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the Group and of the income and expenditure of the charitable group for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charitable company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s.418 of the Companies Act 2006.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Governance

The Charity is governed by its Trustees. The Trustees are appointed by the Superior General of the Congregation.

The principal property assets of the Congregation in England, Wales, Scotland and Northern Ireland are held on charitable trust by The Congregation of the Sisters of Nazareth Charitable Trust and by The Congregation of the Sisters of Nazareth Generalate. With effect from 1 April 2012, the Regional Superior

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of the Congregation’s UK region became the Chair of Trustees ex officio. The Regional Councillors of the Congregation’s UK region also became ex officio trustees.

Additional Sisters and Trustees who are not members of the Congregation may be appointed by the Superior General to ensure that the necessary breadth of skills and experience is available to the Charity’s governing body. Details of all the trustees can be found in the Reference and Administrative Details on page 2 of the Annual Report and Audited Financial Statements and also below.

Newly appointed Trustees are given induction training that includes meetings with staff, meetings with representatives of partner organisations and visits to our houses, nurseries and retirement villages. Ongoing training opportunities will be provided as necessary as the work of the Charity develops.

The Current Trustees

Sister Doreen Cunningham – Chair

Sister Doreen trained as a Registered Nurse in Liverpool and has a degree in Health and Social Care. She also completed a Postgraduate Diploma in leadership and management at Loughborough University. She has worked in a number of our homes in the UK. From 2018 until October2019 she held the position of Chief Nursing Officer for Nazareth Care Charitable Trust, UK Region. In July 2019 she was appointed to take position as UK Regional Superior and Chair of the Charity effective from October 2019.

Sister Teresa Bernadette Fallon

Sister Teresa trained as a Registered General Nurse at Southampton University Hospital in the 1970s and has worked as a care home manager at several Nazareth Houses in the United Kingdom, Northern Ireland and Australia. She has completed courses on Social Work Management, Health Education and Continuing Care of the Dying Patient and Family. She was appointed Superior at Nazareth House Cheltenham in 2006 and became a Regional Councillor for the UK Region in November 2012. She is currently Sister Superior at Nazareth House Finchley.

Sister Madeleine Merriman

Sister Madeleine Carmel Merriman has completed a post graduate diploma in leadership and management at Loughborough University. She has worked as a Child Care Manager in several houses in the UK and served on a board of school governors for 10 years. Sister completed a Diploma in Counselling at the University of Lancaster. She was appointed as Superior at Nazareth House Northampton in 2009 and at Crosby in 2013. She became a Regional Councillor in 2014 for the UK Region. She is currently Superior at Nazareth House Cardiff.

Sister Rose Ita Doody

Sister Rose Ita trained as a cook in Aberdeen College and worked in a number of houses in the Irish and UK Regions. She completed a Diploma in Counselling and Therapy in South East Essex College in 1998 and was appointed Superior and Care Manager in Lancaster in 2000. Sister has completed Level 5 in Management, Registered Manager (ADULTS) in Lancaster and Morecambe College in 2003 and moved to Crosby in 2006. She completed a Foundation Degree on Vulnerable adults at Edge Hill University in 2008, and more recently completed a Diploma in Leadership and Management at Loughborough University. She is currently Sister Superior at Nazareth House Manchester.

Sister Lilian M. B. Bashford – Trustee (until 25 October 2021)

Sister Lilian is a member of the Congregation of the Sisters of Nazareth since 1966, made Final Profession in 1974. She has wide and varied experience in the field of Residential Care and is a retired Psychoanalytical Psychotherapist. Sister Lilian held management and leadership positions within the Congregation.

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Nazareth Care Charitable Trust

Paul Williams – Trustee (until 2 November 2021)

Paul is a Chartered Accountant and for over 25 years was a Partner in what is now Deloitte LLP. His client service role included membership for many years of the Firm’s Voluntary Sector Group. Paul managed significant parts of the Firm’s business in London, Berkshire and Sussex for over 20 years and for 5 years he was National Director of HR on the Firm’s Executive Committee. Paul was subsequently elected to the ‐ Board of Partners. Following ill health, he stood down from the Firm in 2008. Paul has held appointments with other Catholic institutions, including 10 years on the Finance Committee of Westminster Archdiocese and 8 years as Chairman of the Ampleforth Lourdes Hospitalité.

James McAleenan – Trustee (until 19 May 2021)

James qualified as a chartered accountant (SA) and then worked for over 40 years in financial services in the UK and abroad. He has extensive experience of corporate governance, finance and risk and has carried out a variety of roles including CEO, trustee and independent director. He retired from full time employment in 2016 and is now a part time trustee and non ‐ executive director for the Mineworkers' Pension Scheme, Holley Holland financial consultants and Nazareth Care Charitable Trust.

Margot Cronin

Margot has spent over 30 years in the financial services sector. During the course of her career, she held senior management roles including CEO and COO in a number of different countries including UK, US and Hong Kong for Aviva Plc. She is a Chartered Director and holds a Master’s degree in Risk Management & Insurance from City University London (2000). She brings significant commercial and board experience to her role as Trustee.

Donald West

Don has worked in healthcare management for over 30 years, advising hospitals, community and mental health organisations in the UK, Germany and elsewhere on a range of issues, including capital investment, cost improvement and financial recovery, information technology and business intelligence. He is a Trustee and team leader of the Winchester Street Pastors, part of a national charitable organisation dedicated to offering practical support, reassurance, and comfort to people in distress on the street at night. Don is active in the life of his parish, with a particular interest in evangelisation and ministry. He has a degree in Geography and Philosophy from the University of Wales and an MBA from the Open University. He is a keen runner and sailor.

Governance Structure and Management Reporting

The Trustees are ultimately responsible for all the policies, activities and assets of the Charity and the Group. They meet regularly, at least four times each year, to review performance, progress against plans and budgets and to consider broader developments with regard to the activities of the Charity and the Group and to make any important decisions.

When necessary, the Trustees seek advice and support from the Charity’s professional advisers, including property consultants, investment managers, solicitors, and accountants. The Trustees, delegate the running and operating of the Group and Charity on a day to day basis to the Chief Executive.

Engagement with stakeholders

Over the last 12 months, all NCCT businesses were visited by Trustees and executive directors. From January 2022 formal executive team visits have been arranged additional to the Regional Superior and CEO visits. During these visits separate meetings are held with residents/ residents’ families, employees and the communities of the Sisters of Nazareth.

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Nazareth Care Charitable Trust

To minimise the risk of Covid infections and ensure prompt communication, the NCCT SMT and Chair of Trustees attend and organise video calls with the stakeholders. The SMT of NCCT hold regular meetings with key suppliers on a quarlerly and annual basis.

The Directors confirm that in accordance with Section 172 (1) of the Companies Act they act in a way they consider would be most likely to achieve the purposes of the Company. In making this assessment the Directors have considered the following:

1. The likely consequences of any decision in the long term

The long-term sustainability of the operating model is considered by the Directors as set out in the going concern section of the Directors’ Report. Specifically, the Directors consider both short and longer term financial projections and the key risks that could negatively impact the sustainability of Nazareth Care Charitable Trust. The Directors review management information, budgets, forecasts, cashflow projections and progress against the financial recovery plan on a regular basis.

Risk management is embedded at all levels across the Company. The most significant risks are discussed at each Board meeting. The responsibilities of Directors in relation to capital expenditure and investment decisions are set out in the Delegated Responsibilities. This document is reviewed and approved by the Board of Directors annually.

2. Statement of Engagement with Employees

NCCT is an equal opportunity employer and it is within its policy that all job applicants and employees are treated fairly and equally. Furthermore, the organisation will monitor the composition of its workforce to ensure the policy’s effectiveness. NCCT is commtted to training and developing its employees in order to eliminate discrimination and harassment as far as reasonably possible.

In relation to employee engagement, the Directors receive regular reports from management on the mood of staff which is measured through staff engagement surveys. The latest staff survey was completed in July 2021 and revealed an overall satisfaction decrease on all key drivers.

The Directors attend the Charity’s annual conference together with all General Managers, Sisters Superior and Senior Management Team where they can discuss and contribute to the Charity’s initiatives.

Regular site visits are performed by the Directors according to a pre agreed rolling schedule that ensures all locations are covered within a period. During such visits, the Directors engage with staff and management and can discuss freely day to day needs and challenges in order to gain a clear perspective on the business.

The Company has complied with the UK’s Equality Act 2010 Regulations 2017 that require the publication of information on the gender pay gap for UK employees annually. The 2019 report is available on the Nazareth Care UK website.

A global stakeholder review was completed in July 2019 that marked 10 years since Nazareth Care was launched. Its purpose was to review the success of the collaboration between the Sister of Nazareth and Nazareth Care and 9 out of 10 respondents had a positive or neutral view on the relationship.

3. The need to foster the company's business relationships with suppliers, customers, and others

In relation to key stakeholder engagement, the Directors consulted with stakeholders through various channels in 2020/21, including correspondence, webinars, and the annual conference.

Purchasing must be done through approved suppliers and group contracts as per the authority stipulated in the Delegated Responsibility document. Nazareth Care Charitable Trust is committed to ensuring that its mission and values are reflected in its approach to buying goods and services. All national procurements

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Nazareth Care Charitable Trust

must conclude with a written agreement with the chosen supplier in the form of a contract signed by both parties. In particular, the contract must include a detailed specification of the goods/services to be supplied and a set of clear payment terms.

Key management personnel

The CEO has day ‐ to ‐ day responsibility for managing the Charity together with colleagues from the UK Region. The Trustees, who are in charge of directing and controlling the Group and Charity, delegate the running and operating of the Group and Charity on a day to day basis to the Chief Executive, the senior management team, and the General Manager and Deputy General Manager of each Care Home. They comprise the key management of the Group and Charity. The total remuneration (including taxable benefits and employer's pension contributions) of the key management personnel for the year was ‐ £1,579,857 (2020 £1,531,531).

The performance and pay of the Chief Executive, senior management team, and the General Manager and Deputy General Manager of each Care Home is reviewed periodically and benchmarked against industry rates.

Fundraising

The Trust is committed to high standards in fundraising. We are registered with the Fundraising Regulator and continue to monitor and update our data protection policies to make sure that our fundraising activities and communications with our Friends and supporters comply fully with the latest regulations.

Our fundraising materials and communications clearly highlight that:

Communication and Technology

Nazareth Care Charitable Trust has as an in ‐ house comprehensive care management system that has been performing well and is liked by users. It includes integrated modules dealing with financial accounting and asset management and has a project management module that is being used to support the retirement village developments. The management information system produces standard reports but can be flexibly interrogated also by managers at all levels. In addition to this, the region has purchased risk management software to further enhance the organisation’s ability to manage risk effectively.

Fixed Assets

The acquisition and disposal of tangible fixed assets during the year is recorded in the notes to the financial statements.

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Nazareth Care Charitable Trust

Stocks and Work in Progress

In the light of the selling price of Blackburn units, the interest shown in the purchase of the remaining apartments at Blackburn and the apartments at Plymouth which were completed in 2015/16, the Trustees are of the opinion that the value of stocks and work in progress is not less than the historic cost figure recorded on the Group’s balance sheet.

The Trustees’ Report, including the Strategic Report, was approved by the Trustees and signed on their behalf by:

SISTER DOREEN CUNNINGHAM

Chair of the Board of Trustees

Date of approval: 26.04.2022

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Nazareth Care Charitable Trust

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF NAZARETH CARE CHARITABLE TRUST

Opinion

We have audited the financial statements of Nazareth Care Charitable Trust (the ‘charitable parent company’) and of Nazareth Care Charitable Trust and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the group and charitable parent company statements of financial activities, group and charitable parent company balance sheets, the group statement of cash flows, the principal accounting policies and the notes to the financial statements. 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:

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.

Conclusion 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 were:

Other Information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Audited Financial Statements, 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.

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Nazareth Care Charitable Trust

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken during the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained during the audit; we have not identified material misstatements in the trustees’ report including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, 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 and the charitable parent 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 group or the charitable parent company or to cease operations or have no realistic alternative but to do so.

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Nazareth Care Charitable Trust

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements 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 based on 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the charitable company were Care quality Regulations (CQC, Ofsted, Care Inspectorate) for service providers and managers, General Data Protection Regulation (GDPR), Health and safety legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, recording the impact of the care quality regulatory reviews and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Audit and Risk Sub-Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-

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Nazareth Care Charitable Trust

compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

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 and to the charity’s trustees as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 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.

NICOLA MAY STATUTORY AUDITOR For and on behalf of Crowe U.K. LLP Statutory Auditor London

Date : 28th April 2022

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Nazareth Care Charitable Trust

GROUP STATEMENT OF FINANCIAL ACTIVITIES – YEAR ENDED 31 MARCH 2021

(Incorporating income and expenditure account)

Notes Un‐
restricted Restricted
funds
funds
£
£		 Un‐
restricted Restricted
funds
funds
£
£		 Total
2021
£		 Un‐
restricted
funds
£		 Restricted
funds
£		 Total
2020
£
Income from:
Donations and legacies
. Donation from The Congregation of the Sisters of
Nazareth Charitable Trust
2
. Other donations and legacies
2
Charitable activities
. Charges for residential and care services
. Charges for nursery services
Other trading activities
3
Other income
Total income
Expenditure on:
Raising funds
4
Charitable activities
. Provision of residential and care services
5
. Provision of nursery services
6
Total expenditure
Net income and net movement in funds for the year
8
Reconciliation of funds
Fund balances brought forward on 1 April 2020
Fund balances carried forward on 31 March 2021		 75,000
—
25,151,129
505,051
1,444,134
450,770		 93,329
—
—
—
1,480,896		 75,000
93,329
25,151,129
505,051
1,444,134
1,931,666		 75,000
—
26,234,044
554,579
1,004,480
242,068		 —
92,982
—
—
—
—		 75,000
92,982
26,234,044
554,579
1,004,480
242,068
27,626,084 1,574,225 29,200,309 28,110,171 92,982 28,203,153
1,351,975
25,476,249
423,740		 —
1,574,225
—		 1,351,975
27,050,474
423,740		 1,211,593
28,034,266
528,454		 —
92,982
—		 1,211,593
28,127,248
528,454
27,251,964 1,574,225 28,826,189 29,774,313 92,982 29,867,295
374,120
8,094,786		 —
—		 374,120
8,094,786		 (1,664,142)
9,758,928		 —
—		 (1,664,142
9,758,928
8,468,906 — 8,468,906 8,094,786 — 8,094,786

All recognised gains and losses are included in the above statement of financial activities. All activities derived from continuing operations in each of the above two financial years.

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Nazareth Care Charitable Trust

CHARITY STATEMENT OF FINANCIAL ACTIVITIES – YEAR ENDED 31 MARCH 2021

(Incorporating income and expenditure account)`

Notes Un‐
restricted
funds
£		 Restricted
funds
£
—
93,329
—
—
1,480,896
1,574,225
1,574,225
—
1,574,225
—
—
—		 Total
Un‐
restricted
2021
funds
£
£
75,000
75,000
93,329
—
26,508,113
26,234,044
505,051
554,579
1,906,938
242,068
29,088,431
27,105,691
28,433,147
28,133,022
423,740
528,454
28,856,887
28,661,476
231,544
(1,555,785)
8,306,008
9,861,793
8,537,552
8,306,008		 Restricted
funds
£
—
92,982
—
—
—
92,982
92,982
—
92,982
—
—
—		 Total
2020
£
Income from:
Donations and legacies
. Donation from The Congregation of the Sisters
of Nazareth Charitable Trust
2
. Other donations and legacies
2
Charitable activities
. Charges for residential and care services
. Charges for nursery services
Other income
Total income
Expenditure on:
Charitable activities
. Provision of residential and care services
5
. Provision of nursery services
6
Total expenditure
Net (expenditure) income and net movement in
funds for the year
8
Reconciliation of funds
Fund balances brought forward on 1 April 2020
Fund balances carried forward on 31 March 2021		 75,000
—
26,508,113
505,051
426,042		 75,000
92,982
26,234,044
554,579
242,068
27,514,206 27,198,673
26,858,922
423,740		 28,226,004
528,454
27,282,662 28,754,458
231,544
8,306,008		 (1,555,785)
9,861,793
8,537,552 8,306,008

All recognised gains and losses are included in the above statement of financial activities. All activities derived from continuing operations in each of the above two financial years.

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Nazareth Care Charitable Trust

BALANCE SHEETS – 31 MARCH 2021

ANCE SHEETS – 31 MARCH 2021
Notes Group Charity
2021
£
2020
£		 2021
£		 2020
£
Fixed assets:
Tangible assets
12
Investments
13
Total fixed assets
Current assets:
Stocks and work in progress
14
Debtors
Cash at bank and in hand
15
Total current assets
Liabilities:
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current
liabilities
Creditors: amounts falling due after
one year
17
Provision for liabilities
18
Total net assets
The funds of the charity:
Restricted funds
19
Unrestricted funds
. Tangible fixed assets fund
20
. General fund
Total funds
21		 2,724,899
3,188,227
—		 2,724,897
8		 3,188,225
8
2,724,899
3,188,227		 2,724,905 3,188,233

606,232
805,208

3,947,913
4,571,220
3,595,396
4,852,214
9,125,365
9,252,818
(2, 452,791)
(2,956,692)		 —
3,583,652
4,242,332
7,825,984
(1,854,677)		 —
3,212,146
4,303,318
7,515,464
(2,235,029)
6,672,574
6,296,126		 5,971,307 5,280,435
9,397,473
9, 484,353
(742,426)
(1,242,426)
(186,141)
(147,141)		 8,696,212
(158,660)
—		 8,468,668
(162,660)
—
8,468,906
8,094,786		 8,537,552 8,306,008
—
—
2,724,899
3,188,227
5,744,007
4,906,559		 —
2,724,897
5,812,655		 —
3,188,225
5,117,783
8,468,906
8,094,786		 8,537,552 8,306,008

Approved by the Trustees on and signed on their behalf by:

SISTER DOREEN CUNNINGHAM

Chair of the Board of Trustees

Date of approval: 26.04.2022

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Nazareth Care Charitable Trust

GROUP STATEMENT OF CASH FLOWS – YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities:
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2020
B
Cash and cash equivalents at 31 March 2021
B		 2021
£
(62,128)
(218,866)
(218,866)
—
—
(280,994)
4,852,214
4,571,220		 2020
£
(1,298,270)
(391,368)
(391,368)
(24,000)
(24,000)
(1,713,638)
6,565,852
4,852,214

A Reconciliation of net movement in funds to net cash provided by operating activities

2021
£
374,120
682,186
198,976
(352,517)
(1,003,893)
39,000
(62,128)		 2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge\
Decrease in stocks
(Increase) decrease in debtors
Increase (decrease) in creditors
Increase (decrease) in provision for liabilities
Net cash provided by operating activities		 (1,664,142)
728,852
569,234
(292,228)
(665,154)
25,168
(1,298,270)

B Analysis of cash and cash equivalents

2021
£
4,571,220		 2020
£
Total cash and cash equivalents
Cash at bank and in hand		 4,852,214

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Nazareth Care Charitable Trust

PRINCIPAL ACCOUNTING POLICIES – YEAR ENDED 31 MARCH 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

The charity is a limited by guarantee company (registered number 05518564), which is incorporated and domiciled in the UK and is a public benefit entity. The address of the registered office is Larmenier Centre, 162 East End Road, London, N2 0RU.

These financial statements have been prepared for the year to 31 March 2021 with comparative information provided in respect to the year to 31 March 2020.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

In the application of the accounting policies, Trustees are required to make judgment, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affected current and future periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

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Nazareth Care Charitable Trust

Accounting standards require the Board of Trustees to consider the appropriateness of the going concern basis when preparing financial statements. Nazareth Care Charitable Trust (NCCT) posted a surplus of £374,120 after enduring several loss making years.

In order to consider the appropriateness of the going concern basis, NCCT management has prepared and reviewed a scenario analysis looking at the worst case, best case and expected case scenarios.

In a worst case scenario, whilst it would seem that the Charity's reserves and cash position impacted significantly, it would not affect the Charity’s ability to meet Its liabilities over the medium term. With a net cash position of £4,242,332 at 31 March 2021 and forecast gross balance to 31[st] March 2023 of £606k evidencing that it has adequate resources to continue operational activities for the foreseeable future and that it has sufficient cash to meet all financial commitments.

The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above under Critical accounting estimates and areas of judgement heading.

With regard to the next accounting period, the year ending 31 March 2022, the most significant issues that may affect the carrying value of the assets held by the Charity are the level of local and central government funding for residential and nursing care of older people and the cost of implementing the changes to the regulatory environment affecting care homes generally.

Basis of Consolidation

The Group’s statement of financial activities and the Group’s balance sheet consolidate the financial statements of the Charity and the following wholly owned subsidiaries:

NRV Development (Blackburn) Limited - Company number 05906057 NRV Development (Plymouth) Limited - Company number 05940933 NRV Blackburn Limited - Company number 06297407 NRV Management (Plymouth) Limited - Company number 08461398 Nazareth Catering Limited - Company number 06740428 Nazareth Home Care Limited - Company number 08461286 Larmenier Care Home Management Limited - Company number 09382120 NRV Management Glasgow Limited - Company number 09382077 NRV Development Glasgow Limited - Company number 09382096

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.

Income Recognition

Income is recognised in the period in which the Group and/or Charity has entitlement to the income, the amount of income can be measured reliably, and it is probable that the income will be received.

Income comprises donations and legacies, charges for residential and care services, charges for nursery services, income from other trading activities and other income.

Donations are reported on a receivable basis. In the event that a donation is subject to conditions that require a level of performance before the Group and/or Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those

Annual Report 2021 | 30

Nazareth Care Charitable Trust

conditions is wholly within the control of the Group and/or Charity and it is probable that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Legacies are included in the statement of financial activities when the Group and/or Charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the Group and/or Charity.

Entitlement is taken as the earlier of the date on which either: the Group and/or Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the Group and/or Charity that a distribution will be made, or when a distribution is received from the estate. Where legacies have been notified to the Group and/or Charity, or the Group and/or Charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having been transferred to the Group and/or Charity.

Income derived from the levying of charges for residential, care and nursery services are measured at the fair value of the consideration received or receivable, excluding discounts and rebates.

Income generated from other trading activities comprises income from the Charity’s trading subsidiary companies, details of which can be found in note 1 to the financial statements. Such income is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Expenditure Recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Group and/or Charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accrual’s basis. The classification between activities is as follows:

Expenditure on raising funds includes all expenditure associated with raising funds for the Group and/or Charity. This includes commercial trading operations of the subsidiaries and interest payable. Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the Group and/or Charity through the provision of charitable activities. Such costs include provision of residential and care services and provision of nursery services including governance costs.

All expenditure is stated inclusive of irrecoverable VAT.

Governance costs comprise the costs involving the public accountability of the Group and/or Charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

In allocating expenditure to headings, no significant apportionments have had to be used.

Annual Report 2021 | 31

Nazareth Care Charitable Trust

Tangible Fixed Assets

All assets and improvements to existing assets costing more than £1,500 and with an expected useful life exceeding one year are capitalised. The Group and Charity have opted to adopt a policy of not revaluing their tangible fixed assets, which are stated at cost less accumulated depreciation.

A review for impairment of a tangible fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of any tangible fixed asset may not be recoverable.

Leasehold Interest and Improvements

The leasehold interest comprises two amounts of £1 each and represents the residual investment value of leases in Blackburn and Plymouth. It is not depreciated.

Leasehold improvements are included in the financial statements at cost. They are depreciated at a rate ‐ of 10% per annum on a straight line basis once there are 50 or fewer years of the lease remaining.

Other Tangible Fixed Assets

Other tangible fixed assets are capitalised and depreciated at the following annual rates in order to write them off over their estimated useful lives.

Assets are depreciated once they are brought into use.

Fixed Asset Investments

Investments in subsidiary companies are included on the balance sheet at cost.

Stocks and Work in Progress

Stocks and work in progress represent land and buildings under development. Work in progress and consumables are valued at the lower of the costs and net realisable value. The land and building costs comprise the costs of the land, materials, directly attributable interest and other services related to the development and construction of the properties.

Debtors

‐ Debtors are recognised at their settlement amount, less any provision for non recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits.

Annual Report 2021 | 32

Nazareth Care Charitable Trust

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the Group and/or Charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Funds Structure

Restricted funds represent donations received to the benefit of specific homes or area subject to specific conditions imposed by the donors or when the funds are raised for particular restricted purposes.

The remainder of the Group’s and/or Charity’s funds are unrestricted. Within the unrestricted funds, the tangible fixed assets fund represents the net book value of the Group and/or Charity’s tangible fixed assets. These assets are essential to the continued mission of the Group and/or Charity and include the improvements to care homes and the furniture and equipment used in those care establishments.

The general fund represents those monies which are freely available for application towards achieving any charitable purpose that falls within the Group and/or Charity’s charitable objects.

Pensions

Contributions in respect of the Group’s and Charity’s defined contribution pension schemes are charged to the statement of financial activities when they are payable to the scheme. The Group’s and Charity’s contributions are restricted to the contributions disclosed in note 9. There were no outstanding contributions at the year end. The Group has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.

Annual Report 2021 | 33

Nazareth Care Charitable Trust

NOTES TO THE FINANCIAL STATEMENTS – YEAR ENDED 31 MARCH 2021

1. Activities of the Subsidiary Companies

A summary of the financial statements of those subsidiary companies which traded during the year ended 31 March 2021 is as follows:

Company number (England and Wales) NRV
Development
(Blackburn)
Limited
05906057
£		 NRV
Development
(Plymouth)
Limited
05940933
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
Turnover
Cost of sales
Administrative costs
Rental income
Other operating income
Gift Aid donation
Profit (loss) before taxation
Taxation
Profit (loss) for the financial year
Capital and reserves
Called up share capital
Retained earnings
Shareholder’s funds		 360,000
(198,977)		 —
—		 404,325
99,945
15,835
394,924
65,203
(278,628)
(51,396)
—
(263,452)
(17,408)
161,023 — 125,697
48,549
15,835
131,472
47,795
(66,031)
28,395
376
—		 (5,914)
—
—
—		 (230,216)
101,692
2,827
—		 (7,467)
—
—
(16,354)		 (6,499)
—
—
(9,336)		 (152,499)
19,129
1,898
—		 (47,795)
—
—
—
(37,260) (5,914) (125,697)
(23,821)
(15,835)
(131,472)
(47,795)
123,763
—		 (5,914)
—		 —
24,728
—
—
—
—
—
—
—
—
123,763 (5,914) —
24,728
—
—
—
1
(24,262)		 1
(44,584)		 1
1
1
1
1
24 —
270
—
—
(24,261) (44,583) 25
1
271
1
1

A summary of the financial statements of those subsidiary companies which traded during the year ended 31 March 2020 is as follows:

Company number (England and Wales) NRV
Development
(Blackburn)
Limited
05906057
£
NRV
Development
(Plymouth)
Limited

05940933
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home
Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home
Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home
Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home
Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
NRV
Blackburn
Limited
Nazareth
Catering
Limited
Nazareth
Home
Care
Limited
NRV
Management
Plymouth
Limited
NRV
Management
Glasgow
06297407
06740428
08461286
08461398
09382077
£
£
£
£
Turnover
Cost of sales
Administrative costs
Rental income
Other operating income
Gift Aid donation
Profit (loss) before taxation
Taxation
Profit (loss) for the financial year
Capital and reserves
Called up share capital
Retained earnings
Shareholder’s funds		 31,802
—		 —
—		 103,897
105,576
17,085
7,886
—
(266,796)
(65,659)
—
(234,181)
(8,297)
31,802 — (162,899)
39,917
17,085
(226,295)
(8,297)
(95,475)
—
395
—		 (12,727)
—
—
—		 (231,593)
394,492
—
—		 (71,013)
—
—
—		 (10,721)
—
—
(6,364)		 (187,422)
413,717
—
—		 (20,210)
28,507
—
—
(95,080) (12,727) 162,899
(71,013)
(17,085)
226,295
8,297
(63,278)
—
(12,727)
—		 —
(31,096)
—
—
—
—
—
—
—
—
(63,278) (12,727) —
(31,096)
—
—
—
1
(148,125)		 1
(38,670)		 1
1
1
1
1
24
(24,728)
270
—
—
(148,124) (38,669) 25
(24,727)
271
1
1

Annual Report 2021 | 34

Nazareth Care Charitable Trust

A summary of the principal activities of each of the companies which traded is given below:

Company name

Principal activity

NRV Development (Blackburn) Limited Development of a retirement village in Blackburn NRV Development (Plymouth) Limited Development of a retirement village in Plymouth NRV Blackburn Limited The property management of Blackburn Nazareth Catering Limited The provision of catering services to the villages at Blackburn and Plymouth

Nazareth Home Care Limited The provision of domiciliary care services to residents of a retirement village in Blackburn until February 2018

The provision of care services for other religious organisations from February 2018 NRV Management Plymouth Limited The property management of Plymouth NRV Management Glasgow Limited The property management of Glasgow

NRV Development Glasgow Limited (company number 09382096) was dormant throughout the above two years and at 31 March 2021 had capital and reserves equal to it called-up share capital only i.e. £1.

Financial statements for each company in existence on 31 March 2021 will be filed with the Registrar of Companies in due course.

The address of the registered office for all the subsidiary companies is Larmenier Centre, 162 East End Road, London, N2 0RU.

  1. Donations and Legacies
Group Unrestricted
funds
£		 Restricted
funds
£

2021
Total
funds
£

Unrestricted

funds

£

75,000

—

75,000


Unrestricted

funds

£		 Restricted
2020
Total
funds
funds
£
£
Donation from The Congregation of the Sisters
of Nazareth Charitable Trust (note 23)
General donations and legacies
Total		 75,000
—		 —
93,329		 75,000
93,329		 —
75,000
92,982
92,982
75,000 93,329 168,329 92,982
167,982
Charity Unrestricted
funds
£		 Restricted
funds
£
—
93,329
93,329

2021
Total
funds
£		 Restricted
2020
Total
funds
funds
£
£
Donation from The Congregation of the Sisters
of Nazareth Charitable Trust (note 23)
General donations and legacies
Total		 75,000
—		 75,000
93,329
75,000

—		 —
75,000
92,982
92,982
75,000 168,329
82,500		 92,982
167,982

Annual Report 2021 | 35

Nazareth Care Charitable Trust

3. Income from Other Trading Activities

Unrestricted
funds
Group
£
Restricted
funds
£
—
—
—
—		 2021
Total
funds
£
1,289,817
149,216
5,101
1,444,134		 Unrestricted
Restricted
2020
Total
funds
funds
funds
£
£
£
167,369
—
167,369
836,716
—
836,716
395
—
395
1,004,480
—
1,004,480
Income from commercial trading1,289,817
operations of subsidiaries
Rental income
149,216
Other income5,101
Total
1,444,134

4. Expenditure on Raising Funds

Unrestricted
funds
Group
£
Total:Expenditure on commercial1,351,975
trading operations of subsidiaries		 Restricted
funds
£
—		 2021
Total
funds
£
1,351,975		 Unrestricted
Restricted
2020
Total
funds
funds
funds
£
£
£
1,211,593
—
1,211,593

5. Residential and Care Services

Unrestricted
funds
Group
£		 Restricted
funds
£		 2021
Total
funds
£		 Unrestricted
Restricted
2020
Total
funds
funds
funds
£
£
£
Staff costs
18,009,757
Premises
1,623,326
Care and welfare
3,944,708
Central management staff costs
1,146,689
Depreciation678,569
Governance (note 7)73,200		 —
—
1,574,225
—
—
—		 18,009,757
1,623,326
5,518,933
1,146,689
678,569
73,200		 18,647,530
—
18,647,530
1,639,266
—
1,639,266
5,676,785
92,982
5,769,767
1,174,190
—
1,174,190
723,575
—
723,575
172,920
—
172,920
Total
25,476,249		 1,574,225 27,050,474 28,034,266
92,982
28,127,248
Charity Unrestricted
funds
£
17,474,004
1,623,326
5,903,119
1,146,689
678,569
33,215
26,858,922		 Restricted
funds
£
—
—
1,574,225
—
—
—
1,574,225		 2021
Total
funds
£		 Unrestricted
Restricted
funds
funds
2020
Total
funds
£
£
£
Staff costs
Premises
Care and welfare
Central management staff costs
Depreciation
Governance (note 7)
Total		 17,474,004
1,623,326
7,477,344
1,146,689
678,569
33,215		 18,148,828
—
18,148,828
1,639,266
—
1,639,266
6,353,277 92,982
6,446,259
1,174,190
—
1,174,190
723,575
—
723,575
93,886 —
93,886
28,433,147 28,133,022 92,982
28,226,004

Annual Report 2021 | 36

Nazareth Care Charitable Trust

Support costs incurred by the charity are included in Care and Welfare and totalled £985,384 (2020 - £968,368). They comprise the support functions of finance and IT expenditure.

6. Provision of Nursery Services

Unrestricted
funds
Group and Charity
£
Staff costs
275,500
Premises10,919
Care and welfare115,360
Central management staff costs18,337
Depreciation3,624
Governance (note 7)
—
Total
423,740		 Restricted
funds
£		 2021
Total
funds
£		 Unrestricted
Restricted
2020
Total
funds
funds
funds
£
£
£
—
—
—
—
—
—		 275,500
10,919
115,360
18,337
3,624
—		 351,388
—
351,388
11,540
—
11,540
135,653
—
135,653
22,734
—
22,734
5,277
—
5,277
1,862
—
1,862
— 423,740 528,454
—
528,454

Support costs incurred by the Nursery are included in Care and Welfare and totalled £8,734 (2020- £11,736). They comprise the support functions of finance and IT expenditure.

7. Governance

Group Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£		 Unrestricted
Restricted
2020
Total
funds
funds
funds
£
£
£		 Unrestricted
Restricted
2020
Total
funds
funds
funds
£
£
£
Auditor’s remuneration and audit costs,
including VAT
. Statutory audit (prior year)
Statutory audit in year
. Other services: taxation services
Total		 73,200
—		 — 73,200
—		 88,350
71,400
—
—
13,170
—		 88,350
71,400
13,170
73,200 — 73,200 172,920
—		 172,920
Charity Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£		 Unrestricted
Restricted
2020
Total
funds
funds
funds
£
£
£
Auditor’s remuneration and audit costs,
including VAT
. Statutory audit (prior year)
Statutory audit in year
Total		 33,215
33,215		 — 33,215
33,215		 53,622
42,126
95,748
—
—
—
53,622
42,126
95,748

Annual Report 2021 | 37

Nazareth Care Charitable Trust

  1. Net Income/(Expenditure) and Net Movement in Funds for the Year

This is stated after charging:

Group 2021
Total
funds
£
19,480,466
73,200
682,193		 2020
Total
funds
£
Staff costs (note 9)
Auditor’s remuneration
Depreciation		 20,195,842
172,920
728,852
Charity 2021
Total
funds
£		 2020
Total
funds
£
19,697,140
95,748
728,852
Staff costs (note 9)
Auditor’s remuneration
Depreciation		 18,944,713
33,215
682,193
  1. Staff Costs and Remuneration of Key Management Personnel

Staff costs during the year were as follows:

Group 2021
£		 2020
£
Wages and salaries
Social security costs
Other pension costs
Redundancy payments
Apprenticeship levy
Payments to agency staff		 15,412,136
1,003,667
256,751
11,631
60,239		 15,764,524
940,886
270,667
138,895
63,903
16,744,424
2,736,042		 17,178,875
3,016,967
19,480,466 20,195,842
Charity 2021
£		 2020
£
Wages and salaries
Social security costs
Other pension costs
Redundancy payments
Apprenticeship levy
Payments to agency staff		 14,913,996
975,482
249,307
11,631
58,255		 15,298,288
916,734
264,250
138,895
62,006
16,208,671
2,736,042		 16,680,173
3,016,967
18,944,713 19,697,140

The average number of employees during the year was:

Group 2021 2020
Provision of residential and care services and nurseryservices 933 978
Charity 2021 2020
Provision of residential and care services and nurseryservices 895 936

Annual Report 2021 | 38

Nazareth Care Charitable Trust

The number of employees earning £60,000 per annum or more (including taxable benefits but excluding redundancy pay and similar payments and employer pension contributions) during the year was as follows:

Group and Charity 2021
Number
2020
Number
4
2
4
2
1
—
£60,001 - £70,000
£70,001 - £80,000
£120,001 ‐ £130,000

‐ The Group and Charity paid £6,200 (2020 £4,400) in respect to defined contribution pension plans for the above higher paid employees.

The Trustees, who are in charge of directing and controlling the Group and Charity, delegate the running and operating of the Group and Charity on a day-to-day basis to the Chief Executive, the senior management team, the General Manager and Deputy General Manager of each Care Home. They comprise the key management of the Group and Charity. The total remuneration (including taxable benefits and ‐ employer's pension contributions) of the key management personnel for the year was £1,579,857 (2020 £1,531,531).

10. Trustees’ Expenses and Remuneration

The Trustees received £nil remuneration in connection with their duties as trustees during the year (2020 ‐ £nil).

Trustee were reimbursed travel and subsistence expenses of £nil during the year (2020 – one Trustee was reimbursed £269).

11. Taxation

Nazareth Care Charitable Trust is a registered charity and therefore is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

12. Tangible Fixed Assets

Leasehold
Furniture
improve‐
and
ments
equipment
£
£		 Motor
vehicles
£		 Charity
Total
£		 Leasehold
interest
£		 Group
Total
£
Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Depreciation charge
Disposals
At 31 March 2021
Net book values
At 31 March 2021
At 31 March 2020		 4,096,548
3,625,064
157,233
61,625		 230,153
—		 7,951,765
218,858		 2
—		 7,951,767
218,858
4,253,781
3,686,689		 230,153 8,170,623 — 8,170,625
(1,820,596)
(2,721,679)
(420,761)
(259,062)		 (221,265)
(2,363)		 (4,763,540)
(682,186)		 —
—		 (4,763,540)
(682,186)
(2,241,357)
(2,980,741)		 (223,628) (5,445,726) — (5,445,726)
2,012,424
705,960		 6,525 2,724,897 2 2,724,899
2,275,952
903,385		 8,888 3,188,225 2 3,188,227

Annual Report 2021 | 39

Nazareth Care Charitable Trust

The leasehold interest of £2 comprises two amounts of £1 each. £1 represents the residual investment value of a 999 ‐ year lease on a site in Blackburn which is being developed into a retirement village. The ‐ ‐ development value of the leasehold interest in the site, held by a subsidiary company on a 125 year under lease, is included in stocks and work in progress. £1 represents the residual investment value of a leasehold property that a subsidiary company holds on a 125-year lease on a site at Plymouth.

13. Investments

Charity
Shares in subsidiary undertakings at cost
At 1 April 2020
Larmenier Care Home Management Limited
At 31 March 2021		 2021
£
8
8		 2020
£
8
8

Investments represent 100% of the issued share capital of NRV Development (Blackburn) Limited, NRV Development (Plymouth) Limited, NRV Blackburn Limited, Nazareth Catering Limited, NRV Management (Plymouth) Limited, Nazareth Home Care Limited, NRV Development (Glasgow) Limited and NRV Management (Glasgow) Limited. The activities of these companies are summarised in note 1 .

14. Stocks and Work in Progress

Included in the Group’s cost of stocks and work in progress is the construction cost of £606,232 (2020 ‐ £805,209) in respect to the Blackburn Phase 2A development accounted for within the financial statements of NRV Development (Blackburn) Limited.

15. Debtors

Group Charity
2021
£
2020
£		 2021
£
2020
£
2,415,299
1,823,740
387,044
418,117
43,522
168,417
—
11,659
—
29,380
9,336
15,420
16,354
7,404
19,019
26,683
—
9,412
4,961
8,272
688,117
693,642
3,583,652
3,212,146
Residential and care service fees
Prepayments and accrued income
Other debtors
Amounts due from NRV Blackburn Limited
Amounts due from NRV Management Plymouth Limited
Amounts due from Nazareth Home Care Limited
Amounts due from Nazareth Catering Limited
Amounts due from NRV Management Glasgow
Amounts due from NRV Development Blackburn
Amounts due from NRV Development Plymouth
Amounts due from The Congregation of the Sisters
of Nazareth Charitable Trust (note 23)		 2,529,250
1,913,869
420,180
474,587
70,260
162,534
—
—
—
—
—
—
—
—
—
—
—
—
—
—
928,223
1,044,406
3,947,913
3,595,396

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Nazareth Care Charitable Trust

16. Creditors: Amounts Falling Due Within One Year

Group Charity
2021
£
2020
£		 2021
£
2020
£
—
128,992
—
—
657,328
1,072,895
455,905
551,290
506,270
282,566
235,174
199,286
1,854,677
2,235,029
Amounts due to The Congregation of the Sisters of
Nazareth Charitable Trust (see below)
Loans from and contributions due to the
Congregation of the Sisters of Nazareth
Generalate (see below)
Expense creditors
Accruals and deferred income
Amounts due to NCCT
Other creditors
Taxes and social security
Amounts due to Nazareth Home Care Limited		 52,463
251,445
340,106
340,106
675,881
1,118,935
557,880
668,223
581,040
301,130
245,421
206,853
2,452,791
2,956,692

At 31 March 2021 the Group owed The Congregation of the Sisters of Nazareth Charitable Trust £52,463 (2020 ‐ £251,445).

The loan from The Congregation of the Sisters of Nazareth Generalate comprises £340,106 to the Group (2020– £340,106) in respect to NRV Development (Plymouth) Limited.

17. Creditors: Amounts Falling Due After One Year

Group Charity
2021
£
2020
£		 2021
£
2020
£
132,660
132,660
—
—
26,000
30,000
158,660
162,660
Loans from The Congregation of the Sisters of
Nazareth Charitable Trust (note 23)
Loans from The Congregation of the Sisters of
Nazareth Generalate (see below)
Other creditors		 132,660
132,660
583,767
1,079,766
26,000
30,000
742,426
1,242,426

The loan from The Congregation of the Sisters of Nazareth Generalate comprises a loan of £583,767 (2020 – £1,079,766) advanced to NRV Development (Blackburn) Limited.

18. Provision for liabilities

Group
At 1 April 2020
Charged (utilised) for the period
At 31 March 2021		 2021
£
2020
£
147,141
121,973
39,000
25,168
186,141
147,141

The provision relates to sinking funds in NRV Blackburn Limited and NRV Management Plymouth Limited. There is no provision for liabilities within the Charity.

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Nazareth Care Charitable Trust

19. Restricted funds

The funds of the Group and Charity included the following restricted funds:

At 1 April
2020
Income
£
£
Other donations
—
93,329
Infection control grant— 1,480,896
Total— 1,574,225		 At 31
March
Expenditure
£
2021
£
(93,329)
(1,480,896)
(1,574,225)
—
—
—
At 1 April
2019
Income
£
£
Other donations
— 92,982		 At 31
March
Expenditure
£
2020
£
(92,982)
—

The above restricted funds were received from the UK Government to be spent on infection control measures.

20. Tangible Fixed Assets Fund

Group
At 1 April 2020
Movement in year
At 31 March 2021		 2021
£
3,188,227
(463,328)
2,724,899
2021
£		 2020
£
3,525,711
(337,484)
3,188,227
Charity 2020
£
At 1 April 2020
Movement in year
At 31 March 2021		 3,188,225
(463,328)		 3,525,709
(337,484)
2,724,897 3,188,225

The tangible fixed assets fund represents the net book value of the Group’s and Charity’s tangible fixed assets. These assets are essential to the continued mission of the Group and Charity and include the improvements to care homes and the furniture and equipment used in those care establishments.

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Nazareth Care Charitable Trust

21. Analysis of Net Assets Between Funds

Group
Fund balances at 31 March 2021 are represented by:
Tangible fixed assets
Net current assets
Creditors: amounts falling due after one year
Provision for liabilities
Total net assets		 General
funds
£		 Tangible
fixed assets
fund
£		 Restricted
funds
£		 Total
£
—
6,672,574
(742,426)
(186,141)		 2,724,899
—
—
—		 —
—
—
—		 2,724,899
6,672,574
(742,426)
(186,141)
5,744,007 2,724,899 — 8,468,906
Group General
funds
£		 Tangible fixed
assets
fund
£		 Restricted
funds
£		 Total
£
Fund balances at 31 March 2020 are represented by:
Tangible fixed assets
Net current assets
Creditors: amounts falling due after one year
Provision for liabilities
Total net assets		 —
6,296,126
(1,242,426)
(147,141)		 3,188,227
—
—
—		 —
—
—
—		 3,188,227
6,296,126
(1,242,426)
(147,141)
4,906,559 3,188,227 — 8,094,786
Charity General funds
£		 Tangible
fixed assets
fund
£		 Restricted
funds
£		 Total
£
Fund balances at 31 March 2021 are represented by:
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due after one year
Total net assets		 —
8
5,971,307
(158,660)		 2,724,897
—
—
—		 —
—
—
—		 2,724,897
8
5,971,307
(158,660)
5,812,655 2,724,897 — 8,537,552
Charity General
funds
£		 Tangible
fixed assets
fund
£		 Restricted
funds
£		 Total
£
Fund balances at 31 March 2020 are represented by:
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due after one year
Total net assets		 —
8
5,280,435
(162,660)		 3,188,225
—
—
—		 —
—
—
—		 3,188,225
8
5,380,435
(162,660)
5,117,783 3,188,225 — 8,306,008

22. Capital Commitments

~~At 31 March 2021 the Group and Charity had capital commitments of £336,542 for new Finance and~~ Residential Care system (2020 – no capital commitments).

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Nazareth Care Charitable Trust

23. Related Parties and Connected Entities

The Charity is connected to The Congregation of the Sisters of Nazareth (the Congregation), an unincorporated international religious congregation founded by Victoire Larmenier and recognised by the Vatican, currently comprising 216 Sisters worldwide. The Superior General of the Congregation appoints the trustees of the Charity.

The Charity is connected also to two other registered charities:

Name Registration numbers etc. Principal activities
The Congregation of the Sisters
of Nazareth Generalate (CSNG)		 A registered charity (Charity
Registration No 1138876 (England
and Wales))		 The support of the Congregation and its work
throughout the world.
The Congregation of the Sisters
of Nazareth Charitable Trust
(CSNCT)		 A registered charity (Charity
Registration Nos 228906 (England
and Wales) and SC040507 (Scotland)		 The support of the religious and other works (or
ministries) carried on by members of the Congregation
(the Sisters) in the U.K. and the care of those Sisters
throughout their lives with the Congregation in the U.K.
Ownership of 13 establishments in England, Wales,
Scotland and Northern Ireland known as Nazareth
Houses within which nursing, residential and care
services are provided to older people in need.

In the case of both CSNCT and CSNG the Superior General of the Congregation also appoints the Trustees. Throughout the year, two or more of the three charities had some Trustees in common. With effect from April 2012, the Charity and CSNCT have three Trustees in common. None of the Trustees of the Charity are Trustees of CSNG.

At no point during the accounting period did any of the three charities control one or more of the others. As a consequence, accounts consolidating the three charities are not prepared.

During the period there have been a number of transactions between the Charity and/or NRV Development (Blackburn) Limited, NRV Development (Plymouth) Limited, NRV Blackburn Limited, NRV Management (Plymouth) Limited, and CSNCT, details of which are given in the paragraphs below.

CSNCT and Nazareth Care Charitable Trust

‐ At 31 March 2021, the Group and Charity was owed £688,117 (2020 £693,642) from The Congregation of ‐ the Sisters of Nazareth Charitable Trust being £608,345 (2020 £608,345) for redevelopment work carried out at Nazareth House Cheltenham, £75,000 (2020 - £75,000) in respect of donation contribution owing and £4,772 (2020 - £10,297) for work carried out and paid for by NCCT. In addition, the Group was owed ‐ £240,106 (2020 £350,764) being £240,106 (2020 – 240,106) in respect of the contribution for the convent owed to NRV Development (Plymouth) Limited, nil (2020 - £31,802) in respect of rent to NRV Development (Blackburn) Limited and nil (2020 – £78,856) in respect of services voids due to Management Glasgow Limited and NRV Blackburn Limited

On 31 March 2021, the Charity owed The Congregation of the Sisters of Nazareth Charitable Trust ‐ £nil (2020 £128,992). In addition, the Group owed The Congregation of the Sisters of Nazareth Charitable ‐ Trust a further £52,463 (2020 £251,445), due from NRV Blackburn Limited.

‐ During the year, CSNCT donated £75,000 (2020 £75,000) to the Charity (see note 2).

During the year, the Charity incurred £475,843 (2020 - £422,930) of management stipend expenditure which was paid to the Congregation of the Sisters of Nazareth Charitable Trust. NCCT also incurred expenditure for the rental of the care homes and nursery of £1,245,411 (2020 - £1,263,981).

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Nazareth Care Charitable Trust

CSNG and NRV Development (Blackburn) Limited

On 7 March 2012, The Congregation of the Sisters of Nazareth Generalate granted a loan facility to NRV Development (Blackburn) Limited for an unsecured loan of up to £4.2 million to be used to finance the construction of apartments and bungalows at the Larmenier Retirement Village, Preston New Road, Blackburn. The loan is repayable by the anniversary of the agreement together with accumulated interest, interest accruing at 5%. At 31 March 2021 £3,181,280 (2020 – £3,181,280) (including accrued interest of ‐ ‐ £631,143 (2020 £631,143)) of the loan had been drawn down. Repayments of £496,000 (2020 £nil) were ‐ made to CSNG during the financial year. At 31 March 2021, the company owed £683,766 (2020 ‐ £1,179,000) to CSNG, of which £100,000 (2020 £100,000) was due within one year.

CSNG and NRV Development Development (Plymouth) Limited

On 19 December 2012, The Congregation of the Sisters of Nazareth Generalate granted a loan facility to NRV Development (Plymouth) Limited for an unsecured loan of up to £7.9 million to be used to finance the construction of apartments at Nazareth House, Durnford Street, Plymouth. The loan is repayable by the anniversary of the agreement together with accumulated interest, interest accruing at the rate of the Base Rate plus 4% per annum. At 31 March 2021, £6,140,106 (2020 – £6,140,106) (including accrued interest of ‐ ‐ £809,949 (2019 £809,949)) of the loan had been drawn down. Repayments of £nil (2020 £nil) were made ‐ to CSNG during the financial year. At 31 March 2021, the company owed £240,106 (2020 £240,106) to ‐ CSNG, of which £240,106 (2020 £240,106) was due within one year.

CSNCT and NRV Development (Blackburn) – Retirement Villages

Under the terms on which NRV Development (Blackburn) Limited sells certain apartments within the retirement village, should the purchaser for any reason wish to vacate the property at any time and not sell it on the open market, NRV Development (Blackburn) Limited undertakes to buy back the unit. It is calculated that the maximum liability to NRV Development (Blackburn) Limited in the event that several leaseholders simultaneously exercise the buyback option would be £750,000. Should NRV Development (Blackburn) Limited not have sufficient funds to meet this liability, CSNCT has agreed to meet any shortfall.

24. Other Related Party Transactions

Other than as disclosed above, there were no other related party transactions requiring disclosure (2020 – none).

25. Liability of the Members

The Charity is constituted as a company limited by guarantee. In the event of the Charity being wound up each of the members would be required to contribute an amount not exceeding £1.

26. Post Balance Sheet Events

There were no post balance sheet events.

27. Ultimate Control

The Charity is controlled by the Congregation, an international Roman Catholic religious Congregation, by virtue of the fact that the Superior General of the Congregation appoints the trustees.

28. Custodian Funds

‐ At 31 March 2021 the Group and Charity held £99,843 (2020 £93,168) being deposits held on behalf of residents in the Charity’s care homes. These amounts are not included in these financial statements as the Group and Charity have no control over the monies. The funds are held in a bank account separate from the cash at bank of the Group and Charity.

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