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2021-03-31-accounts

Company number 12227571 Registered Charity Number: 1187072

Nugent Care 2019

(Company Limited by Guarantee)

For The Year Ended 31 March 2021

Nugent Care 2019

CONTENTS

Page Page
Report of the Trustees 1 to 33
Report of the Independent Auditors 35 to 37
Statement of Financial Activities (Incorporating Income and Expenditure Account) 38
Balance Sheet 39 to 40
Cash Flow Statement 41
Notes to the Cash Flow Statement 42 to 43
Notes to the Financial Statements 44 to 66

Nugent Care 2019

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective October 2019).

The accounts are for the charity Nugent Care 2019 and the linked charity Nugent Care. Nugent Care 2019 was incorporated on 25 September 2019 and the charities were linked on 30 June 2020.

ort as required by Company Law.

OBJECTIVES AND ACTIVITIES

The objectives of the charity are to provide for the:

The Trustees are satisfied that the objectives of the charity are being met in the range of activities that it undertakes. The Trustees believe that the charity's well founded reputation for excellence in the services it provides in the North West will enable it to meet any emerging needs in the future in continuing advancement of its objectives.

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OBJECTIVES AND ACTIVITIES

Public benefit

reviewing our aims and objectives and when planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Nugent principles

To achieve our mission, all of our current activities and future development plans are based on the following principles:

Nugent Values

Nugent has a set of agreed values, which is iACCORD:

Staff and Volunteers

The Trustees wish to record their appreciation to all staff and volunteers for their expertise, unstinting efforts and dedication. Through this dedication, Nugent Care is able to reach out and meet the needs of so many people in our community and make a real difference to their lives.

Our staff and volunteers are essential to the work that Nugent does. They dedicate their time, expertise, passion and compassion to the work that we do. During the Coronavirus, we furloughed on average over the 3 lockdowns 3% of staff at peak, their pay.

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CHARITY GOVERNANCE CODE ALIGNMENT

The aim of the code is to help charities and their trustees develop high standards of governance. It is not a legal or regulatory requirement; it draws upon but is different to Charity Commission guidance.

The Code sets the principles and recommended practice for good governance, and is deliberately aspirational: some elements of the Code will be a stretch for Nugent to achieve. It is to be used as a tool for continuous improvement towards the highest standards.

to undertake an audit of the

rate with recommendations, which resulted in the following actions that were achieved and approved in March 2021.

  1. The development and approval of procedures relating to the CEO were improved and expanded including a Remuneration Policy and a Disciplinary policy as suggested by the Code.

  2. An improved Board Assurance Framework was developed that included three new Board Committees, including, Finance and Investment (replacing the Trustee Finance Meeting), Audit and Risk and Nominations and Remuneration. The Audit and Risk Committee will review any Whistleblowing concerns.

  3. Trustees annually meet with our financial auditors however; in September 2021 Trustees will meet the auditors without paid staff present.

  5. Safeguarding for Trustees was arranged for July 2021 with Trustees also having access to online learning.

A follow up audit will be conducted in November 2021 with results being shared with the Trustees in December 2021.

CEO Remuneration

The CEO reports directly to the Chair of Trustees. The salary of the CEO and of the Executive is determined by the newly confirmed Nomination and Remuneration Committee.

The Nomination and Remuneration Committee, within its Terms of Reference, assist the Board in ensuring that the Board and Executive Leadership Team retain an appropriate structure, size and balance of skills to support remuneration package and set the targets for performance-related pay (if applicable). In the event of a vacancy, the Committee would oversee the arrangements of the appointment of a new CEO.

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

Nugent describes its charitable activities under four main families. These are School, Homes, Community and Family.

School

Homes

Adults

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Children

Community

Family

Developments in Services

Community Sponsorship Scheme

Nugent became the lead sponsor for four Parishes to become community sponsors under the Home Office collective of three parishes in South Liverpool have all welcomed and supported a refuge family from Syria.

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Nugent Care 2019

ACHIEVEMENTS AND PERFORMANCE continued

Community Sponsorship is a way to welcome and resettle refugees, putting local communities at the heart of a e community assumes responsibility for a refugee family, from first arrival through to settled independence as part of their local community. In total 18 refugees (7 adults and 11 children) have been re settled and are now leading independent lives in their new communities. Our communities have been enriched by diversity and the cultural exchanges that have taken place. The welcome and support given by the volunteers in this project has been outstanding and is a direct response to the call of Pope Franc May every parish, every religious community, every monastery, every sanctuary of Europe, take in .

Marydale Lodge

-18 year old young people. It currently has the capacity to support 12 young people, and is the only home of the thirteen national provisions that is a charitable organisation and not local authority operated. The home offers onsite education and hosts a collocated full health provision. Marydale provides residential.

Marydale is part of the national Secure Accommodation Network; an umbrella organisation made up of the nationwide Secure Childrens Homes. Marydale has, in the last 18 months has become part of sub committees leading the development of the secure estate , working with partners in DfE and OFSTED and national leading experts in ensuring that the welfare provision is responding to the increase of complexities in children and that has a dynamic responsive fit for purpose provi improved outcomes.

Marydale is leading and creating an evidence base for implementing psychologically informed models of care that ensure resilient workforces, who are able to deliver targeted and evidenced based interventions. This piece of work will culminate in the creation of a best practice trauma informed model that leads the way for the country.

Marydale has been the subject in the last 13 months of three DfE case studies that have highlighted its exceptional These case studies are based around innovative practice, exemplary multi-disciplinary approached to risk and the creation of complex metalizing and psychologically informed systems.

developments it has seen in the last 12 months to ensure we are part of shaping the future.

Nugent House School

In response to the Ofsted inspection in March 2020 and a self-evaluation, Nugent House School has continued to drive improvements in curriculum, teaching and learning. The reintroduction of AQA Awards has resulted in over 70% of the pupil population achieving recognition of skills and knowledge from Primary through to Sixth Form. In August 2020, 32 qualifications were achieved, twice as many as in 2019, with double the number of grades 3 and 4 awarded.

In September a new safeguarding system, MyConcern, was introduced, allowing improved reporting and monitoring of the safety and welfare concerns of pupils. This has also improved communication with local authorities by being able to provide immediate chronologies and information relating to children and young people.

2020-21 also provided us all with unprecedented challenges with the arrival of COVID-19. As a school, we have responded through regular hand washing, social distancing and PPE and in October 2020, bubbles were formed to reduce the impact of any potential positive cases. The creation of bubbles allowed learning to continue and support to be provided. Staff adapted well, began to develop new skills and think creatively about the curriculum.

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We have also been able to induct new pupils during this period and ensured they have felt settled and welcomed despite a global pandemic.

ACHIEVEMENTS AND PERFORMANCE continued

Finally an application for Nugent House School to become a residential special school has been submitted (202122) which will provide much needed support, care, education and inspiration for vulnerable children and young people pending OFSTED approval. We are optimistic that we will open our residential school in this forthcoming financial year, which will also improve our budgetary position and future viability.

New Services Development

Service Closures 1

Other Developments

Culture of Excellence Framework (Compliance, Governance and Risk)

The development of our governance framework, a Culture of Excellence, continues to evolve at a rapid pace.

Evolution of the Governance Framework

levels of management and service are now monitored, from Trustees (Charity Governance Code) through to frontline services (various audits).

The Governance function has transformed over the last 12 months, empowering Trustees and ELT with more information than they have ever previously been provided, enabling them to be more informed and make better decisions both operationally and strategically.

The Starting Point

At the start of the year, services were monitored using a number of self-audits, with adverse findings added to the individual Service Improvement Plan, allowing progress to be tracked through to satisfactory resolution. Daily, Weekly, Monthly compliance monitoring was in place across all services, with records maintained largely on electronic documents, with every detail reviewed each day.

Incidents and accidents were recorded on the new Events System, enabling services to easily record and report the action taken as incidents and accidents occurred. However, the quality and accuracy of the information received via the various reporting streams was inconsistent, both within each service and across all Nugent services.

Change in Leadership

In late June, the Executive Officer to the CGO, took on responsibility for the Governance function until a new Manager was recruited in October. This period was used to conduct a thorough review of the department, and design a roadmap leading to the service providing Trustees, CEO, and ELT with increased visibility of service risks and performance.

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ACHIEVEMENTS AND PERFORMANCE continued

This led to the creation of the Culture of Excellence on a page flow chart, which set out the fundamental processes required of the Governance function, but also vital improvements to enhance the quality and consistency of data reporting.

The key fundamentals of this roadmap included:

By Year End

As Nugent moved from 2020 and into 2021, Governance began the process of auditing services independently. The first independent audit instructed by the CEO, was the Charity Governance Code, auditing the leadership of Trustees and CEO across Nugent against the Code and resulting in the creation of 3 new Trustee committees.

The new Audit Schedule for 2021 was ambitious, striving to achieve the following objectives:

During Q1 of 2021, Governance were allocated 2 confidential whistleblowing allegations. The way that the investigations were conducted, and findings disclosed to ELT, provided validation that Governance were on the right path, and producing quality recommendations and outcomes.

By the end of Q1 2021, Governance were providing ELT with the clearest evidence-based picture of the standard of service being offered to beneficiaries. This was achieved through:

On the Horizon

The Governance Team continues to progress and develop methods of improving transparency across Nugent, enabling Trustees, CEO, and ELT, to be better informed of the way services are operating. Planned developments include:

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Nugent Care 2019

ACHIEVEMENTS AND PERFORMANCE continued

Equal Opportunities

Nugent has an Equalities policy and is compliant with the Equalities Act.

defined procedures are in place to ensure fair and equitable consideration in the selection process for all applicants. All suitable applicants will receive consideration for employment without regard to their religion (or none), ethnicity, culture, gender identity, sexual orientation, and physical and mental health. Nugent is also committed to compliance with all fair employment practices.

The charity has a positive approach to the employment of disabled persons. It ensures that all people with disabilities have proper access to their right to Equal Opportunities, both to enter employment with the Charity and also to progress their career and achieve their individual potential. We welcome applications for employment from all prospective employees regardless of disabilities. We are a Disability Confident Employer.

Equality Diversity and Inclusion

Following the death of George' Floyd in the United States, the issue of systemic racism and anti-racism work has been highlighted. Nugent has taken time to reflect on these issues and issued an anti-racism statement through the CEO and supported by the Trustees. Following months of learning and reflection, Nugent also published in August 2020 an inclusivity statement and an anti-racism pledge.

2020/21 was a year that Nugent committed to increasing our commitment to Equalities, Diversity and Inclusion across the charity.

----- Start of picture text -----
Date Action
July 2020 Anti-Racism A pledge, supported by Trustees that in addition to BAME work that
Pledge
sexual orientation, religion and belief).
Inclusivity CEO sets out pledge that is published on our external website and on
Statement our internal SharePoint.
Anti-Racism CEO provides a statement that is published on our external website
Statement and on our internal SharePoint.
August 2020 EDI Strategy CEO commits to developing an Equalities, Diversity and Inclusion
Commitment Strategy (race inclusion, age diversity, disability, gender equality,
orientation, religion and belief).
Internal Report commissions Ethnicity comparison of Nugent staff and
volunteers and Impact of Covid on BAME Staff/Volunteers.
Internal Report Commission on Diversity of Adopters in the Adoption
Service.
----- End of picture text -----

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ACHIEVEMENTS AND PERFORMANCE continued

----- Start of picture text -----
Unconscious Bias and Inclusive Leadership Training for leaders in
Nugent.
October BAME Forum BAME forum launches renames to RISE forum (Racial Inclusion
2020 staff engagement).
September EDI Survey Survey conducted with Leadership on Diversity and Inclusion.
2020
November Zero Tolerance Development of Zero Tolerance policy begins.
2020 Policy
Charity Audit conducted by Governance Department based on evidence
Governance provided. 83% compliance achieved.
Code Audit,
including EDI
EDI Group CEO publishes EDI Group Terms of reference that identifies the
Terms of creation of staff forums, that have never before existed.
Reference
December Board Report: - Internal reports shared with Trustees
2020 CEO Executive - CEO advocates for Nugent to commit to being a Living Wage
Summary employer
- Charity Wide EDI Audit
January EDI Assembly EDI Assembly launches on Martin Luther King Jr day.
2021 Launches
February EDI Strategy Consultation begins with EDI Assembly.
2021 Draft
March 2021 Review of Completed as part of People Stack. Taken to first EDI assembly for
Equality and Impact Assessment.
Diversity Policy
Board Board Assurance Framework approved by Trustees including the EDI
Assurance forum and the staff forums for LGBTQIA+, RISE, WIN, Interfaith,
Framework Disabilities and will be included in the Nugent wide Meetings policy.
Trustee Board Images provided by marketing include EDI and Cultural Competency
EDI Work in the Strategic Bridges as a demonstration of alignment in the
Including in strategic plan 2020-2025.
Strategic
Bridges
Unconscious Trustees engage in Unconscious Bias and Inclusive Leadership
Bias and Training.
Inclusive
Leadership
Trustee Board Charity Governance Code Audit Findings presented to Trustees.
Living Wage Trustees commit to becoming a Living Wage Employer in 2022.
Employer
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Anti-Racism Statement from the CEO, Normandie Wragg (2020)

Over recent weeks there have been important conversations around the issue of race. Nugent, as an organisation whose mission it is to care, protect, educate and inspire people, must hold a mirror to itself and consider how it can learn, adapt, and evolve in response to these important issues, both internally and externally. We aim to have the courage to take a stand on inequality and be honest as to where we can improve. Our values mean everything to us we all deserve dignity and respect.

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ACHIEVEMENTS AND PERFORMANCE continued

Anti-Racism Statement from the CEO, Normandie Wragg (2020) (Continued)

Every human person, regardless of religion, culture, nationality, orientation, or economic standing has a right to dignity. Each one of us is unique and beautiful. We are called to treat every person and every creature with loving respect and compassion. I do not pretend to have the answers to these important issues, however, I am proactively listening, reading, watching, and self-reflecting, as well as acknowledging my privilege. Personally, and in my role as CEO, I am being more vocal in highlighting issues of racism and inequality, and to support vital anti-racism work in opposing racism and promoting inclusion. I ask you to join with me in supporting this vital work in the interest of human dignity.

Nugent Heroes

Some may call the people who work for them, staff, or employees. We call them heroes. The people we care for, protect, educate and inspire come from all walks of life and so do we. We hire great people from a wide variety of backgrounds, not

mean everything to us. All suitable applicants will receive consideration for employment without regard to their religion (or none), ethnicity, culture, gender identity, sexual orientation, and physical and mental health. Nugent is also committed to compliance with all fair employment practices.

Anti-Racism and Equality Pledge

We need the ambition and optimism to look for a brighter future for all of our beneficiaries and staff. We will start by:

1 Nugent recognises that there are many people from ethnic minority communities in the UK and from overseas who do not identify themselves as being Black or Asian or Ethnic Minority (BAME), but whom because their ethnic origin, language, culture or religious differences share a common experience of racial discrimination and inequality. We acknowledge the term BAME is limited, however we would encourage anyone who identifies with experiences of racial discrimination to take part in the listening sessions.

2 Data identified as of June 2020. Currently our ethnicity data demonstrates Nugent has 10% BAME representation based on available ethnicity 535 staff. 120 staff were not counted in this data due to no ethnicity data being available. The actual representational figures are expected to be lower due to other data not being available.

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ACHIEVEMENTS AND PERFORMANCE continued

SECTION 172 STATEMENT

The trustees have a duty to promote the success of the charity and in doing so are requested by section 172(i) of the companies act 2006 to have regard to;

Our vision for the organisation continues the spirit of our purpose which is to continue to provide and develop the kind and essential work of Father Nugent. Nugent developed its

, educate, protect and inspire those

Our vision is to be a totally dignified and outstanding organisation

is rigorously regulated by regulators such as the Care Quality Commission (CQC), Ofsted, Local Authorities, the Charity Commission and other quality mark organisations. Further, the vision takes into account our attainment of our own chosen quality markers through our Governance Framework: A Culture of Excellence.

element of the vision, this relates back to a value check against our faith-based

origins within the Catholic Social Teachings including:

and long-standing and respected values within our charity.

Therefore, our vision acknowledges the standards of a holistic environment which includes service users, stakeholders (including staff), regulators and a strong value base. We are making sure that we are making significant changes to the way we provide and govern our services. We will make sure that, above all, the dignity of the people we serve is paramount.

Our Mission

To care for, educate, protect and inspire those in need.

We have five strategic themes that we will work to ensure that we are directed towards our mission.

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These are

  1. Health and Well being

  2. Independence and Resilience

  3. Shaping Futures

  4. Collaboration

  5. Financial Sustainability

Themes 1 and 2 are focussed on developing our services for the people we serve. Theme 3 is about our internal process and the governance of this work, collaboration is an externally facing theme guiding our work about how we interact and support the wider health and social care economy. In addition, the fifth theme is about ensuring that we are providing robust financial stewardship of charitable funds.

Structure

Nugent is a registered charity and a company limited by guarantee and is governed by its Articles and Trust Deed. The Charity has two subsidiaries, Nugent Community Interest Company and Nugent Academy Trust. Both are currently dormant.

Trustees

Nugent Care 2019 Ltd.

The role of Trustee is to ensure Nugent, as a major employer and provider of services to people in need, operates effectively within an ever-changing environment thus ensuring maximum service delivery to all service users. To also provide strategic guidance an

The responsibilities of a Trustee are clearly laid out in Charity Commission guidance and other literature.

plans and finance and operations. Trustees also meet for one whole day once per year to look at the future direction of Nugent.

Trustees are appointed for three year terms that are renewable for up to 9 years with the exception of the Archbishop appointed Trustee who would remain in role for as long as they, or the Archbishop chooses. The Nomination and Remuneration Committee oversees appointments to the board.

Trustees are recruited through recruitment campaigns and personal recommendations. All successful candidates are selected through a safer recruitment process involving the Nominations and Remuneration Committee and the Chief Executive.

Any person that is offered a role as a Trustee, (or Chief Executive or Director, will be required to submit an automatic disqualification declaration as part of the pre-employment checks.

All new Trustees take part in an induction programme, led by the Chief Executive with support from the People team, to ensure that they fully unders activity.

The Board is dedicated to achieving high levels of governance and has in recent years invested in the development of a governance framework. The board, audited itself against the Charity Governance Code framework (December 2020) and had a high compliance level (83%). The charity will re-audit against the code in November 2021 to ensure areas for development were achieved.

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Trustee Sub Committees

As a result of the audit, three new committees were created for 2021/22 financial year, these being

  1. Finance and Investment Committee (replacing Trustee Finance Meeting)

  2. Nominations and Remuneration Committee

  3. Audit and Risk Committee

A Board Assurance Map was updated to include these Committees.

Each Committee has an agreed Terms of Reference.

Related Parties and relationships with other organisations

Nugent chooses to align itself with the Archdiocese of Liverpool.

Executive Leadership Team

In every day practice the Trustees delegate the day-to-day operations of the charity to the Chief Executive and the Executive Leadership Team ensure that systems are in place to adequately safeguard against mismanagement, misdirection or mistake. The ELT comprises the Chief Executive and three other members with clear lines of responsibility for specific areas of the organisation.

The Trustees have worked with the Executive Leadership Team to develop our long-term strategy for the charity. Responsibility for implementation of the plans is delegated to the ELT through agreed one-year business plans.

Remuneration Policy for Executive Leadership

The remuneration of members of the Executive Leadership team is determined by the Remuneration Committee (from April 2021) and in line with our Executive Remuneration Policy (also published on our website). The committee takes into consideration;

Diversity

As part of our commitment to be culturally inclusive and competent organisation we have initiated, in 2020 and 2021 networks for

  1. Black, Asian and Minority Ethnic People (the forum have chosen to refer to themselves as RISE Racial Inclusion Staff Engagement)

  2. LGBTQIA+

  3. Women (Win Women in Nugent)

  4. Disabled People

  5. And Faith

These staff networks contribute to a collective of staff networks, noted as the Equalities, Diversity and Inclusion (EDI) Assembly. The EDI Forum through the staff networks, have consulted on changes to HR policy and our EDI Strategy. We intend to publish our EDI Strategy after consultation, in 2022.

Unconscious Bias and Inclusive Leadership learning was provided to our managers, leaders and Trustees in 2020 and 2021.

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Sharing Information with Employees

Communication is key across the organisation and we endeavour to ensure that information is communicated clearly and regularly.

Commitments

Nugent promotes our organisation from a values based standpoint. We have a set of values that our decisions are made against. We also have a set of principles that we work with that set out how we operate. Our first decision is about whether a decision ultimately benefits the people we serve, our beneficiaries and secondly is it financially sustainable in that we achieve full cost recovery and that we are able to pay a real living wage.

We have signed up to several frameworks within the Liverpool City Region to publically declare our alignment with certain initiatives.

Collaboration

Memberships

Nugent is a member of;

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Has signed up to:

Registered with:

We are unionised with a recognition agreement with Unison and an MOU with Teaching Unions. We are committed to being an entirely Living Wage Employer by April 2022. We are a Disability Confident Employer.

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Nugent Care 2019

Environment

Streamlined Energy and Carbon Reporting

Due to the creation of Nugent Care 2019 Ltd, Nugent is now mandated to disclose our UK energy use and associated greenhouse gas (GHG) emissions. As a minimum Nugent is required to report those GHG emissions, and as a minimum are required to report natural gas, electricity and transport fuel as well as an intensity ratio under the Streamlined Energy and Carbon reporting (SECR) regulations.

Scope of Report

The scope covered under this report includes;

  1. The energy use of our homes, school and offices

  2. Transport private and volunteer mileage

Quantification and reporting methodology

Nugent works with Utility Aid to monitor and report on our energy usage.

Energy efficiency actions and targets

Nugent has previously taken part in ESOS Phases 1 and 2. With this new requirement to report our progress we are developing at Environmental strategy.

Nugent has utilised technology and Office365 meeting tools, primarily as a response to the to the Covid 19 pandemic. This has enabled us to reduce our carbon emissions due to reduction of travelling. Further, the majority of our business support staff are now working from home rather than office based (with the offer of collaboration hubs for when team work or one to one meetings are needed).

Many of our buildings have solar panels attached with provide a renewable source of energy. Further, we have been working to ensure replacement of inefficient bulbs are replaced by efficient bulbs.

Summary

Nugent has been monitoring its environmental performance and has identified that there is further work to be done to have a greater impact on our world and be in alignment with the UN Sustainability Goals. Nugent will continue to work towards developing a programme of greenhouse gas reduction initiatives through the organisation.

----- Start of picture text -----
Element 2019-2020 (tC02e)
Gas Consumption at a premises where Nugent 660.5 tonne
holds control over metering and invoicing
(Sco
Owned Transport for vehicles rented/leased by 207,598 CO2 emissions
Nugent for work purposes
UK Electricity At premises where Nugent holds
control over metering and invoicing
Total(tC02e) 273.89 tonne
Transmission and Distribution of UK Electricity
at premises where Nugent hols control over metering 1,74,775 kWh
and invoicing
Business Travel (land) - Private staff and volunteer 124,126.468 Miles for 2019
mileage
Total Emissions (tC02e) 2.721 tonne per person
Intensity metric tonnes of CO2e per full time
employee
----- End of picture text -----

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FINANCIAL REVIEW

Investment Policy and objectives

The Trust Deed gives the Trustees unrestricted powers to determine investment policy.

The Trustees appoint investment managers and have agreed arrangements for reviewing and assessing their performance and portfolio selection. All investment decisions are delegated to the appointed investment states that no investments are knowingly to be made in any company which generates more than 10% of turnover from military activity or 10% from the production or distribution of pornography and/or adult entertainment or more than 10% from the production of anything which threatens the sanctity of life.

The investment objective of the Trustees is to limit the risks to which the charity is exposed through its to support charitable objectives. The instructions to the investment managers reflect this objective.

The listed investment portfolio increased in value by £769,000 to £5,054,000 (2020: £4,286,000). The portfolio produced an income stream of £132,000 to support our charitable activities.

The fair value of investment property at the year-end amounted to £143,000 (2020: £143,000) and relates to a legacy property with a value based on an informal valuation following a review of similar properties.

Reserves policy

Nugent Care is a charitable trust with activities dependent on donations, legacies and other charitable gifts. It also functions as a service provider, managing fees and grants from statutory bodies for specific activities, projects and services.

Reserves policy (Continued)

Reserves are held to enable Nugent Care to meet its legal and moral commitments to the people it serves and its obligations as a good employer. The specific purposes of the reserves held are to enable the Trustees to:

The Trustees consider and review the appropriate requirements for free reserves (being those unrestricted funds not expended on fixed assets, designated for specific purposes or otherwise committed).

After deducting designated funds, uncommitted reserves freely available for current activities were in £1,926k.

The Trustees have assessed the attendant risks and are satisfied that, given that the charity's operations are substantially funded from statutory sources, the level of resources is sufficient to meet them.

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Income

Total incoming resources for the year decreased from £17,466,000 to £17,425,000.

Our Special Independent School generated less income than the previous year at £2,549,000 (2020: £2,557,000). Income from Residential Homes and Individualised Day Services increased year on year to £13,695,000 (2020: £13,115,000). The income from donations decreased from £187,000 in 2020 to £171,000 in 2021. Legacies increased from £500 in 2020 to £1,486 in 2021. We very much thank people who think of us in their wills. We also had grant income of £55,000.

Expenditure

Total resources expended during the year reduced from £21,002,000 to £19,511,000. There was an increase in expenditure of £11,000 on the Special Independent School. Expenditure on Residential Homes and Individual Day Services reduced by £1,375 £130,000.

Surplus/Deficit

The Statement of Financial Activities shows Net Expenditure of £1,909,000 after taking into account gains on investments of £769,000 and revaluation of fixed assets of £592,000 . This is compared to Net Expenditure of £4,281,000 in 2020.

rous in order to turn around the financial performance of the charity. Nugent Care continues to operate within a difficult environment as a result of the financial constraints homes.

The Trustees regularly review operations to ensure that there is no jeopardy to the charity's objectives and that the level of approved deficit funding of some services provided is consistent with the longer term objective stated in the reserves policy.

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FINANCIAL REVIEW continued

Significant Events

Existing Services Major Capital Works

Marydale Lodge

The refurbishment works to the bedrooms at Marydale Lodge are now complete at a cost of £880,659 funded through a grant by the Department of Education. This represents an overspend in the grant funding made available of £44,531 (5.3%). This was due to enhancement to the IT infrastructure, changes to the work schedule (2 rooms at a time as opposed to 6) and variations to the specification during the works such as Corian doors rather than timber. All invoices are now discharged and grant received.

Applications for six additional grants were lodged following invitation from DfE. These totalled £126,971 and were granted in respect of:

Subsequently, the Keytracker security system application was varied to include additional works to improve the admissions journey for young people adding a further £18,534.00 to the funding. These works are now complete save for the additional works to the admissions corridor which was completed in August 2020.

Lime House

Following the review of the Fire Risk Assessment for Lime House additional capital works were identified in respect of fire safety. These included:

Works were tendered at £283,000 and delivered in 3 phases: Fire Doors; Basement compartmentation and Fire escapes. Works are complete to phases 1 and 2 with phase 3 due to complete in July 2021. Subject to any final account variations works are on time and on budget.

Nugent House School

Nugent House School benefited from a number of initiatives which started during the course of 2019/20 and remain in progress during the current year which includes the following:

Total investment in the works extended to £200,000+. Agreed variance within budget lines allowed the preceding projects to be initiated at zero increase to school budget.

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FINANCIAL REVIEW continued

Land Disposals

The land on the East side of West Lane Formby

Heads of terms have been agreed for the sale of the site and progress is being made towards a final contract for sale.

Ravenmeols Lane, Formby

An offer on the site has been accepted and papers are agreed for sale at £275,000 with a completion end date of November 2021.

The former Blackbrook House site in St Helens

The proposed disposal continues to be on hold whilst alternative redevelopment options as a Nugent Service are considered.

Lower field Billinge

The site has received a number of offers which are currently being considered following the marketing of the site.

Clarence High School

Heads of terms have been agreed for the sale of the site and progress is being made towards a final contract for sale.

Fundraising Governance

At Nugent we fundraise to sustain, improve and extend our vital services so that we can better support and care for children, adults and families facing adversity across Merseyside. Our charitable activity encompasses our residential care homes for both adults and children, school, adoption service, and wide variety of community services. Our supporters are exceptional - they volunteer their time, donate money, fundraise on our behalf, take part in events, campaign, raise awareness and give us their expertise so we are even more effective.

Support from local philanthropists, corporate partnerships and charitable trusts helps to fund our therapeutic services. Financial investment and pro-bono support mean we can amplify our influence and make even more impact on the lives of those that rely on our support.

Nugent is a member of the Fundraising Regulator, who holds the Code of Fundraising Practice for the UK.

Our approach is to ensure that we comply with the standards as set out in the Code across all of our fundraising activity. We do not engage with any third party fundraisers. We comply with the key principles and behaviours of the Code to ensure that any vulnerable persons are treated fairly. We are transparent about how we raise and use donations and the impact they have on the lives of our beneficiaries.

CC20, pu fundraising. The Board of Trustees has received guidance and updates on fundraising best practice.

We strive to employ the highest standards of professional fundraising and encourage our staff to join relevant when they join our organisation. All fundraising is coordinated via our central Fundraising Team.

We work hard to ensure all of our donors enjoy the best possible experience when supporting Nugent. We understand things can go wrong and we take all concerns and complaints seriously. We received no complaints this year relating to Fundraising.

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FINANCIAL REVIEW continued

NB: Our current Head of Fundraising & Income Generation joined Nugent in October 2020 and since then has instigated a wholesale review and subsequent internal audit of fundraising-specific policies, practices and procedures. Implementation of audit recommendations commenced with effect from July 2021

FUTURE PLANS

Following the Trustees agreement in principle to the future direction of the charity a new Strategic Plan entitled 'Being Outstanding', was developed. Updated March 2021 to include 5[th]

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FINANCIAL REVIEW continued

Priorities and direction

Therapeutic Connection

Where we want to be:

  1. We want to be a leading provider for high quality, evidence based therapeutic care and education, where children and young people are at the very centre of their assessment, care planning, risk management, achievements and outcomes.

  2. We want to offer a holistic therapeutic environment where children and young people feel 'contained', are able to develop secure attachment behaviours, feel safe, feel empowered to communicate and participate.

  3. Our therapeutic model and interventions will be evidence based and compliant with current best practice guidance.

Plans

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FINANCIAL REVIEW continued

Nugent Care aims to continue to serve the needs of its community through the provision and adaptation of existing services and the development of new services. Nugent Care will continue to respond to relevant tender opportunities that fit with its mission and strategic plan, but also look for other development opportunities. We will ambitiously search out and enter into tender processes for block contracts with a view to increase our turnover and, ability to help more people. To focus on block contracts with regard to substance misuse, mental health and offending.

The Trustees acknowledge that in relation to existing services difficult decisions may have to be made in relation to services that cannot attract sufficient income to be economically viable.

New services will be fully self-funded through a variety of income streams such as grants, fees and tender bids, but there will be flexibility to develop some innovative services that are not initially fully self-funded. In making applications for new services, the service will be assessed for its adherence to Nugent Care's philosophies, strategic direction and objectives.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

Nugent Care 2019 is the Sole Corporate Trustee of Nugent Care. The names of the Nugent Care 2019 Trustees are shown on page 26.

The Archbishop powers vested in him by the Trust Deed, appoints one Nominee to the Trustees. Further Trustees are appointed by a resolution of the Trustees in accordance with the powers vested in them by the Trust Deed and Memorandum of Articles of Association of Nugent Care 2019.

Trustees are recruited via an Equal Opportunities recruitment process to ensure a balance of skills and experience to oversee strategic and operational objectives. All new Trustees undergo an induction process, and on-going training and yearly appraisal is conducted.

Related parties

Nugent Care is linked with the Roman Catholic Archdiocese of Liverpool and the incumbent Archbishop is the President of Nugent Care. This link is a contributing influence on the ethos, culture and objectives of the charity.

Nugent Social Enterprises CIC (NSE) was formed by Nugent Care. The company is a community interest company and as such is a separate entity from Nugent Care, but its activities are controlled by the NSE Board of Directors. The activities of NSE are not considered material to show a true and fair view and have not been consolidated into these accounts.

NSE was incorporated on 23 December 2013 and began trading in May 2014. The community interest company is currently dormant .

Nugent Multi Academy Trust (operating as Nugent Academy Trust) was incorporated on 26 September 2019. The company is an academy trust and as such is a separate legal entity from Nugent Care. However, the Corporate Trustee Nugent Care 2019, Normandie Wragg, Nugent Care CEO and Alan Dean, current Trustee and Director of Nugent Care 2019 are the members of the Academy Trust and are registered as persons with significant control over the entity at Companies House.

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Risk management

The Trustees examine and review the significant strategic, financial and operational risks that the charity faces. They have established systems and structures for ongoing identification and monitoring of risks, and receive regular written reports relating to the operations and finances of the charity in all relevant respects.

t, Internal Control

Corporate Governance. The Trustees are satisfied that all reasonable steps are being taken to manage all identified risks.

Nugent, as a charity, is consistently reviewing its key risks. As a result of the Covid 19 world-wide pandemic, further risks have emerged.

  1. Strategy

  2. Operations

  3. Income and Sustainability

  4. Governance and Compliance

  5. Technology

----- Start of picture text -----
Key Risks
1. Strategic People, Leadership and Culture: Weaknesses, failure or lack of
accountability of leadership, inability to develop and retain talent
effectively and an organisational culture that is not an enabler in the
Business Continuity: The occurrence of incidents (including
would in business as usual situations.
Reputation: A range of occurrences including current and non-
recent incidents, events and outcomes that may consequently
damage our reputation.
2. Operational Staffing: Insufficient numbers of qualified or experienced staff to
ensure safe staffing levels to protect beneficiaries and enable
income.
Safeguarding:
associated vulnerable persons, including children, from abuse and
maltreatment.
Regulatory: The charity fails to comply with or is unable to meet
applicable regulatory requirements, leading to reputational damage
and financial penalties.
3. Income and Insufficient income and reserves for the charity sector to
Sustainability achieve its strategic objectives and maintain its operations.
----- End of picture text -----

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----- Start of picture text -----
4. Governance and Data Protection and GDPR : An event or incident such as an
Compliance external data breach or inadvertent internal error resulting in the
accidental or unlawful destruction, loss, alteration, unauthorised
disclosure of or access to personal data.
Governance: The charity does not achieve its strategic, charitable,
regulatory and ethical objectives due to inadequate governance at
the board and senior management or operational levels.
5. Technology Organisational Change and Digital Transformation : The failure
to execute organisational change and transformation programmes
effectively and to achieve the intended benefits of these, resulting
primarily in inefficient
Cyber Security: Cyber incidents (typically unauthorised or
external or internal parties that negatively impact the confidentiality,
----- End of picture text -----

REFERENCE AND ADMINISTRATIVE DETAILS

Governing document

Nugent Care (also known as Nugent) is a registered, unincorporated charity founded in 1881 and constituted under an original Trust Deed dated 1889 and revised in May 1906, April 1924, September 1976, March 2002, December 2005 and June 2015. The 2005 Trust Deed incorporated the appropriate amendments to enable the charity to change its name to 'Nugent Care' from 'The Nugent Care Society'.

Corporate Trustee : Nugent Care 2019 Ltd (Company No: 12227571), Registered Charity 1187072 and Nugent Care Registered Charity: 1187072-1

Changes to Trustee Structure 2020/21

In February of 2019, at a Trustee away day, the Trustees reviewed the structure and governance of the Governing Body and Trustee board. With solicitor advice, they agreed, following that day to move to a scheme and structure that would offer increased protection to individual Trustees whilst limiting the impact on the charity. Activity to fulfil this objective was undertaken throughout 2019/20 financial year.

The Scheme was made by the Charity Commission on 27 March 2020 taking effect on 1 April 2020. From April 1st 2020, the new arrangements are as follows:

Details of change

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The various properties held by Nugent Care have been vested by the Charity Commission Scheme in Nugent Care 2019 and steps are being taken to update Land Registry records but otherwise there has been no need for the ownership records of any assets to be transferred.

The Charity Commission on the 30 June 2020 confirmed by letter, the linking of Nugent Care 2019 and Nugent Care, the charity. The purpose of a linking direction is to enable charities who qualify to link one to the other for accounting and registration purposes. Nugent Care charity (the unincorporated charitable trust) has been linked

This process does not in any way constitute a merger nor does it constitute the winding up or dissolution of the original unincorporated charitable trust. The original unincorporated charitable trust continues to exist in the same manner as it did prior to the linking direction being made and does still constitute a separate charity.

The linking of the charities (effected under Section 12 of the Charities Act 2006) is an administrative process and not one that serves to extinguish the existence of the linked charity.

The regulated activities carried out by Nugent Care through the unincorporated charitable trust are continuing in exactly the same way as was the case before the incorporation process and linking direction were completed.

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REFERENCE AND ADMINISTRATIVE DETAILS

Principal address

99 Edge Lane Liverpool L7 2PE

Nugent Care 2019 Sole Corporate Trustee of Nugent Care

President

Most Rev Archbishop Malcolm McMahon OP I

Nugent Care 2019 Trustees

Mrs K Batt (Date of Appointment 1 April 2020) Mr J Berry (Date of Appointment 1 April 2020) Mr M Boardman (Date of Appointment 1 April 2020) Mr JP Dennis (Chair) (Date of Appointment 1 April 2020) Father M Fitzsimons (Date of Appointment 1 April 2020) Mrs S Thomas nee Johnson (Vice-Chair) (Date of Appointment 1 April 2020) Mr W Stead (Date of Appointment 1 April 2020) Mr A Dean (Date of Appointment 1 April 2020) Mrs S Worden (Treasurer) (Date of Appointment 1 April 2020) Mrs N Sampson (Date of Appointment 1 April 2020) Rev Paul Rooney (Date of Appointment 1 April 2020)

Chief Executive Officer

Ms Normandie Wragg MA, NCW

Chief Operating Officer

Ms Elizabeth Ambler (Date of Resignation 14[th] August 2020)

Chief Governance Officer

Mrs Joanne Henney

Chief Finance Officer

Mr Adrian Bloor

Auditors

MHA Moore and Smalley Chartered Accountants and Statutory Auditors Richard House 9 Winckley Square Preston PR3 5AL

Bankers

HSBC 99-101 Lord Street Liverpool L2 6PG

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Nugent Care 2019

REFERENCE AND ADMINISTRATIVE DETAILS continued

Solicitors

Brabners Horton House Exchange Flags LIVERPOOL L2 3YL

KEOGHS 2 The Parklands Bolton BL6 4SE

Hill Dickinson No. 50 Fountain Street MANCHESTER M2 2AS

Hill Dickinson No. 1 St Paul's Square LIVERPOOL L3 9SJ

Property Advisors

Excello Law Peter McHugh 4th Floor 1 Derby Square Liverpool L2 9XX

Investment Advisers

Rathbone Investment Management Port of Liverpool Building Pier Head Liverpool L3 1NW

Insurance Brokers

Howden Insurance Brokers Limited 30a Port of Liverpool Building Pier Head Liverpool L3 1BY

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

James Nugent Court, a former Nugent Adult Residential Care facility, was sold in August 2021.

The HSBC Business Interruption Loan Scheme (CBILS) facility granted for an 18 month period during the last financial year was repaid early in August 2021.

Covid-19 Pandemic

Throughout 2020/21, Nugent has operated diligently and flexibly to mitigate the impact of Covid-19 on all aspects of the services that it provides. Staff have continued to maintain robust infection control processes to minimise the risk to beneficiaries and each other. As with many charitable organisations, revenue has been impacted, including the ability to organise fundraising events that attract vital income and opportunity to increase the overall profile of the charity.

Management of Covid-19

During 2020/21, Nugent altered its management of Covidmanagement processes. This change opened the day-to-day control of the pandemic to the wider incident control structure, using dedicated Gold, Silver, and Bronze (Adult Services and Children Services). The key processes in place following this change were:

As Government guidance was published, small teams worked on reviewing the impact on Nugent, with information shared and cascaded through the command structure to the individual services. This allowed Nugent to react swiftly to any potential changes and ensure the information reached the frontline of services as rapidly as possible. Where cases were identified, an incident log was maintained to aid communication across teams, and record actions taken to mitigate the risk. Any identified issues were then discussed during the weekly handover meeting, and support provided where required.

Impact on Services

The impact of Covid-19 was, and still is, felt by all services and support functions. Generally, the impact has been low, predominantly due to the hard work of staff within the services to maintain effective infection control measures, and swift communication of process changes through the command structure. Whilst there are occasional staffing concerns due to the requirement to self-isolate (test and trace), the main factors still impacting services include:

The Charity Shop was impacted the most by the Government restrictions, resulting in its closure on 6[th] January 2021 until 12[th] April 2021.

At the start of 2021, Nugent permitted more flexibility for staff in support functions to visit services. This enabled these functions to better support services and increase the visibility of services for ELT and Trustees, keeping them abreast of both positive and negative concerns at the point of service delivery.

PPE and Supply Chain

Nugent has not experienced any real issues with its supply chain, or access to PPE. Regular deliveries of food and essential consumables has remained in place throughout 2020/21.

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EVENTS SINCE THE END OF THE YEAR - continued

Impact on Staff, Volunteers and Beneficiaries

We sadly experienced two beneficiaries pass away due to Covid-19 in February 2021. Both were residents of Margaret Roper House. Nugent reached out to the affected families and offered support to the beneficiaries and staff at Margaret Roper House.

One member of staff, a long serving employee passed away early in the pandemic. This staff member had not been in work for sometime.

Our staff, our heroes, continued to work throughout the pandemic. Those who were shielding, were furloughed (less than 1%) when the scheme was announced.

We took the decision to only furlough those staff who were required to shield or had care responsibilities for others who were required to shield, subject to them providing a letter from their doctor. The total staff that were furloughed was 39, broken down as follows:

The requirement to shield finished on 31 July 2020 and all staff returned from 1 August 2020. Visits to beneficiaries were permitted throughout 2020/21, with infection control measures in place to minimise the risk as much as possible.

As the roll out of the Covid-19 vaccinations gathered pace, previous issues, such as sickness, were reduced for both beneficiaries and staff. This reduced the staffing impact felt by some services. Where services were at potential risk of major staffing issues, working bubbles were introduced to minimise the number of staff exposed when a positive case was identified. Staff also worked above and beyond, particularly in relation to overtime and -19. They are the true heroes of this pandemic and, are living embodiment of the culture and values Nugent holds dear.

From the start of lockdown to the end of December 2020, the Caritas team and volunteers supported over 7 500 contacts with food. A free weekly community market was set up in the car park of one of our projects. For those set up a weekly delivery service. We could not have reached the number of beneficiaries supported without the help of our wonderful volunteers who gave so tirelessly of their time and skills.

Our Deaf colleagues provided pastoral support to Deaf adults and this included regular signed zoom events on the Gospel of the Day and included opportunities to share prayers and offer support.

All welfare benefits work went online with beneficiaries being supported with benefit claims and support. A monthly accessible online prayer service was set up by the Living Fully group for adults with learning disabilities, members of the Caritas team and volunteers led several sessions and this project is now led by the people with learning disabilities.

Impact on Finance and Income Generation

Unlike many charities that have been adversely financially affected during the pandemic due to their reliance on fundraised income which was frustrated due to the inability to conduct fundraising events, Nugent has been in a much stronger position. Nugent's fundraised income is less than 5% of our total revenue, with 90% of our income derived from contracts with statutory authorities.

Throughout the past year, our efforts to stay connected and in touch with our beneficiaries, commissioners, partners and supporters has been more important than ever before. Against a backdrop of a necessary reduction in marketing expenditure we have endeavoured to streamline our communications and further develop our digital engagement channels.

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Nugent Care 2019

EVENTS SINCE THE END OF THE YEAR - continued

Our various marketing and communications channels have provided us with the tools we have needed to keep our supporters up-to-date with how they can best support Nugent. Importantly, we have been able to keep our beneficiaries and commissioners abreast of how our services have adapted and changed to meet the pandemic head-on enabling us to continue to reach new people and take on board new service users, even whilst operating in a through a period of immense uncertainty.

Our fundraising efforts have continued to bring in reasonable amounts of income for our organisation contributing to continued financial sustainability during a period which has rocked not only the third sector but the broader social care sector. Whilst most of our organised fundraising events had to be cancelled and/or postponed, we were lucky enough to benefit from the support of loyal individual supporters, parish groups and schools who took up their own fundraising events and challenges on our behalf.

These fundraising efforts have been accompanied by a fantastic up-take in financial and in-kind support from local, regional and national corporations with businesses proactively engaged by our fundraising staff to support a number of projects several focussed on ensuring that we can do more to help those facing adversity to preservice through these turbulent times.

We are very thankful for the continued kindness and thoughtfulness of our friends and supporters. Whether they have made a donation(s), fundraised on our behalf, shared our content across social media or championed our cause amongst associates they have made a real difference! Without our friends and supporters we simply would not have been able to support as many children, adults and families as we have been able to.

Donations and Legacies total in excess of £172,000 during the year. Notable receipts were from the following organisations:-

Our fundraising department pivoted its plan for community events and translated these to online events. Members of the fundraising team were diligently applying to community Covid grants to support the work that we were doing internally and in the community.

Impact on Investments, and Reserves

Due to the access to an overdraft facility via HSBC Bank and the continued revenue expected from our services, we do not expect to need to realise (any of) our current investments.

As per our 2020-2025 Strategic Plan we have taken a decision to realise unutilised capital assets in order to reinvest into our services. Several land assets are currently on the market in order to achieve this goal.

Impact on principal risks and uncertainties

As per our Strategic Plan, our principal risks and uncertainties within the charity primarily focus on the following five key objectives:

  1. Financial Sustainability.

  2. Positive Regulatory Ratings.

  3. Strong Leadership.

  4. Recruitment and Retention of Staff.

  5. Realisation of Assets.

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Mitigating our main risks of:

  1. Strategy

  2. Operations

  3. Income and sustainability

  4. Governance and compliance

  5. Technology

There is a risk to our ongoing revenue if our services experience a Covid infection, an embargo levied by a regulator, or a customer (i.e., a local authority) is no longer able to cover their financial contracts.

Although regulators have been limiting their visits during the lock down, we have had contact with both the CQC and Ofsted who have been supportive of our work and working with us to achieve the best possible arrangements for our beneficiaries during these challenging times.

Clear leadership is definitive during a pandemic and as such we have seen an increase in the skills, leadership and effectiveness of our leaders.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

EVENTS SINCE THE END OF THE YEAR - continued

Future Aims and Activities

Nugent launched a new strategic plan in April 2020 and has continued, throughout the pandemic to implement our strategic objectives during this time.

2021, an ambitious and realistic growth plan was business plans for 2021-2022 and beyond. This plan includes increasing capacity at Marydale, adjusting our fees to market rates, returning our Independent Special School to a Residential Special School, increasing roll at our

As part of ensuring future sustainability a difficult decision was taken to find staff efficiencies and other cost savings. Going forward into 2021-22, these efficiencies combined with asset sales, good regulatory ratings, our growth plan and being mindful about our expenditure is beginning to demonstrate a stronger financial return and further re-assurance that quality compassionate services will be sustainable.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees (who are also directors of Nugent Care 2019 for the purposes of company law) are responsible for preparing the Report of the Trustees Annual Report (including the strategic report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

A resolution proposing that MHA Moore and Smalley be re-appointed will be put at a General Meeting.

Each of the persons who is a trustee at the date of approval of this report confirms that:

Signed on behalf of the trustees on 22nd November 2021

22nd November 2021 Approved by order of the Board of and signed on its behalf by:

···························································· JP Dennis - Chair of Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES

Opinion

We have audited the financial statements of Nugent Care 2019 1 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'(United Kingdom Generally Accepted Accounting Practice).

In our opinion the accompanying 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustees Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. The Trustees are responsible for the other information contained within the annual report. 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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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees statement on page 28, 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 ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation

A further description of our responsibilities for the audit of the financial statements is located on the Financial website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the , as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable . To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the as a body, for our audit work, for this report, or for the opinions we have formed.

Nicola Mason (Senior Statutory Auditor) For and on behalf of MHA Moore and Smalley Chartered Accountants Statutory Auditor Richard House 9 Winckley Square Preston PR1 3HP

24/11/2021

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Nugent Care 2019

STATEMENT OF THE FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2021

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
2
Charitable activities
5
Special schools
Residential homes and individualised
support projects
Miscellaneous
Other trading activities
3
Investment income
4
Other income
6
Total income
EXPENDITURE ON:
Raising funds
7
Charitable activities
8
s
Special schools
Residential homes and individualised
support projects
Total expenditure
NET INCOME/(EXPENDITURE)
Impairment in value of fixed assets
Net gains/(losses) on investments
NET MOVEMENT IN FUNDS
Reconciliation of funds:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
172
427
2,549
13,400
3
40
132
156
16,879
339
809
3,199
14,443
18,790
(1,911)
(592)
769
(1,734)
14,209
12,475		 Restricted
Funds
55
187
-
295
-
9
-
-
546
9
206
-
506
721
(175)
-
-
(175)
1,070
895		 2021
Total
227
614
2,549
13,695
3
49
132
156
17,425
348
1,015
3,199
14,949
19,511
(2,086)
(592)
769
(1,909)
15,279
13,370		 2020
Total
617
824
2,557
13,115
10
85
247
11
17,466
345
1,145
3,188
16,324
21,002
(3,536)
-
(745)
(4,281)
19,560
15,279

The notes form part of these financial statements

38

Nugent Care 2019

BALANCE SHEET 31 MARCH 2021

Notes
FIXED ASSETS
Tangible assets
13
Investments
Investments
14
Investment property
15
CURRENT ASSETS
Debtors: amounts falling due within one
year
16
Investments
17
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
18
NET CURRENT (LIABILITIES)/ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amount falling due after more than one
year
19
NET ASSETS		 2021
9,383
5,054
143
14,580
2,105
-
713
2,818
(3,815)
(997)
13,583
(213)
13,370

Company number 12227571

The notes form part of these financial statements

Page 39

Nugent Care 2019

BALANCE SHEET 31 MARCH 2021

FUNDS
23
Unrestricted funds:
General fund
Designated
tangible fixed assets
Designated - investments
Restricted funds
TOTAL FUNDS		 2021
1,926
8,049
2,500
12,475
895
13,370		 2020
757
9,023
4,429
14,209
1,070
15,279

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

22nd November 2021 and were signed on its behalf by:

JP Dennis Chair of Trustee

Susan Worden Treasurer

Company number 12227571

The notes form part of these financial statements

Page 40

Nugent Care 2019

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Net cash flow from operating activities
1
Interest paid
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of tangible fixed assets
Sale of fixed asset investments
Sale of investment property
Dividends received
Net cash provided by/(used in) investing activities
Cash flows from financing activities
New bank loan
Bank loan repayments in year
Net cash generated by financing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
2
Cash and cash equivalents at the end
of the reporting period
2		 2021
(1,799)
(6)
(1,805)
(331)
-
-
-
-
132
(199)
2,250
(80)
2,170
166
547
713		 2020
(2,597)
(13)
(2,610)
(1,045)
-
2
5,199
170
247
4,573
-
(103)
(103)
1,860
(1,313)
547

The notes form part of these financial statements

Page 41

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
Net expenditure for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
Depreciation charges
Losses/(gain) on investments
Revaluation of fixed assets
Loss on disposal of fixed assets
Interest paid
Dividends received
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash used in operations		 2021
£'000
(1,909)
713
(769)
592
-
7
(132)
249
(550)
(1,799)		 2020
£
(4,281)
639
745
-
13
(247)
(188)
722
(2,597)

2. ANALYSIS OF CASH AND CASH EQUIVALENTS

ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Notice deposits (less than 3 months)
Overdrafts included in bank loans and overdrafts falling due
within one year
Total cash and cash equivalents		 2021
£
713
-
713		 2020
£
50
497
-
547

The notes form part of these financial statements

Page 42

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

Net cash
Cash at bank and in hand
Bank overdraft
Liquid Resources
Deposits included in cash
Current asset investments
Debt
Debts falling due within 1 year
Debts falling due after 1 year
Total		 At 1 April 2020
547
-
547
-
19
19
(105)
(294)
(399)
167		 Cash flow
£'000
166
-
166
(19)
(19)
(2,269)
81
(2,188)
(2,041)		 At 31 March 2021
£
713
-
713
-
-
(2,374)
(213)
(2,587)
(1,874)

The notes form part of these financial statements

Page 43

Nugent Care 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective October 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

A new charitable company limited by guarantee, Nugent Care 2019 was incorporated during the year. This became the sole corporate trustee of Nugent Care by way of a Charity Commission scheme which was made on 27 March 2020 and took effect from 1 April 2020.

On 30th June the Charity Commission confirmed the linking of Nugent Care and Nugent Care 2019. Nugent Care continues to exist in the same manner as it did prior to the linking direction being made. From 1 April 2020, Nugent Care, the unincorporated charity was given a new charity registration number of 1187072-1.

These financial statements cover the activities of Nugent Care unincorporated and Nugent Care 2019 for the period under review. As Nugent Care 2019 is dormant and does not have any assets, all activity relates to Nugent Care unincorporated and additional columns and results are not required for Nugent Care 2019.

In consideration of the appropriateness of the use of the going concern basis, the trustees have considered the principal financial risks facing the charity and the steps they have taken to mitigate them. With respect to the next reporting period, 2021-22, financial forecasts have been prepared and downside scenarios have also been modelled in relation to the growth plans for the organisation. The outcomes of these forecasts support the view that the Charity remains a going concern.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

INCOME

lncome is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations are accounted for when received.

Legacies are recognised on the earlier of the date on which the charity is advised by the personal representatives of an estate that payment will be transferred, and the amount involved can be quantified with sufficient reliability or when the distribution is received by the estate. Where legacies have been notified to the charity or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Grants and fees for services and activities are accounted for when receivable. Grants subject to performance-related conditions or terms and conditions outside the charity's control are deferred and released to income when the conditions are met.

Page 44

Nugent Care 2019

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES continued

INCOME

Government grants are recognised in the financial statements when there is reasonable assurance that the charity will comply with the conditions attached to the grant and the grants will be received. A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the charity with no future related costs shall be recognised in income in the period in which it is receivable.

Gifts of goods donated for resale are recognised at the point of receipt at fair value unless it is impractical and/or the costs of recognition on receipt outweigh the benefit of this information to users of the accounts and the charity of this information, in which case they are recognised as income when sold.

Investment income is recognised when receivable and the amount can be measured reliably by the charity.

Funds reimbursed through an insurance claim are recognised by offsetting them against the related expense. The amount reimbursed is recognised as an addition to the fund that initially suffered the insured loss.

EXPENDITURE

Expenditure is accounted for on an accruals basis.

Costs of raising funds are incurred in attracting voluntary income and include the salaries and overhead costs of the staff that undertake fundraising activities.

Charitable expenditure comprises costs of services supplied and activities undertaken directly in respect of activities, and related support and governance costs. Support costs represent costs such as strategic management and development, finance, HR, training, IT support, estate and property management and general administration. Governance costs are primarily associated with constitutional and statutory requirements of operating the charity, including professional fees for external audit and legal advice.

Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

TANGIBLE ASSETS

Tangible assets are stated at cost and depreciated over their useful economic lives, except for freehold land which is not depreciated. The economic life of an asset is revised if there is a change in circumstances. Depreciation is calculated to write off the cost of fixed assets over the following maximum periods:

Freehold property 66 years Building adaptations 20 years Motor vehicles . ±. 3 years

Page 45

Nugent Care 2019

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES continued

Tangible assets are subject to an impairment review if circumstances or events change to indicate that the carrying value may not be fully recoverable. Where an asset is found to be impaired, it is written down to its recoverable amount and the loss on impairment is charged to the relevant expenditure category.

INVESTMENTS

Investments in quoted shares, traded bonds and similar, and investment property are measured initially at cost and subsequently at fair value.

TAXATION

The charity is exempt from tax on its charitable activities.

FUND ACCOUNTING

Restricted funds are subject to specific restrictions imposed by the donor or trust deed or terms of an appeal. Expenditure that meets the criteria is identified to the fund.

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for particular purposes.

FINANCIAL INSTRUMENTS

Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value except for bank loans, which are subsequently measured amortised cost using the effective interest method, and investments in listed shares, which are subsequently measured at fair value (market value).

Concessionary (interest free) loans made by the charity to its subsidiary are initially recognised at the amount paid. Loans repayable in more than one year are subsequently adjusted to reflect repayments and any impairment.

LEASING COMMITMENTS

Rentals payable under operating leases are charged against income over the lease term.

CASH AT BANK 1

Cash at bank and in hand includes cash and short term highly liquid investments which are included as current assets.

DEBTORS

Debtors are stated in the balance sheet at estimated net realisable value. Net realisable value is the invoiced amount less provisions for bad and doubtful debtors.

CREDITORS

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can' be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Page 46

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

1. ACCOUNTING POLICIES continued

MULTI EMPLOYER PENSION SCHEME

The charity participates in a multi-employer defined benefits pension scheme, Scheme (England and Wales) ("the Scheme"), for its teaching staff. It is not possible or appropriate to identify the assets and liabilities of the Scheme which are attributable to the charity. Accordingly, the charity has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The TPS is an unfunded arrangement backed by the government. Contributions are paid in respect of benefits earned by members to date. Typically, there is no legal or constructive obligation to pay anything further in respect of current or prior service.

JUDGEMENTS AND KEY ESTIMATES

Other than noted in the fixed asset note in respect of the valuation of the properties, there are no judgements or key estimates required in preparing the accounts.

2. DONATIONS AND LEGACIES

Donations and gifts
Legacies
Grant income		 2021
£'000
171
1
55
227		 2020
£
187
1
429
617

Donations and legacies includes £55k of restricted grant income (2020 £429k)

3. OTHER TRADING ACTIVITIES

3. OTHER TRADING ACTIVITIES 3. OTHER TRADING ACTIVITIES
Unrestricted
Restricted
£'000
£'000
Shop income
40
9
4. INVESTMENT INCOME
Dividends from investments held
5. INCOME FROM CHARITABLE ACTIVITES
community services
Special schools
Residential homes and
individualised support projects
Miscellaneous		 2021
2020
£'000
£
49
85
2021
2020
£'000
£
132
247
2021
2020
£'000
£
614
824
2,549
2,557
13,695
13,115
3
10
16,861
16,506
2021
£'000
132
2021
£'000
614
2,549
13,695
3
16,861

Income from charitable activities includes restricted grant funding of £482K (2020 £8k)

Page 47

Nugent Care 2019

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

6. OTHER INCOME

Fixed asset disposal
CJRS grant
Covid grant
RAISING FUNDS
RAISING DONATIONS AND LEGACIES
Fundraising and publicity
OTHER TRADING ACTIVITIES
Charity shop expenditure
Aggregate amounts		 2021
£'000
-
156
-
156
2021
£'000
282
2021
£'000
66
348		 2020
£
1
-
10
11
2020
£
271
2020
£
74
345

7. RAISING FUNDS RAISING DONATIONS AND LEGACIES

Expenditure on raising funds includes £9k of expenditure related to restricted funding (2020 £Nil)

Page 48

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

8. CHARITABLE ACTIVITIES COSTS

Activities
Undertaken
directly
(i) Unrestricted funds
services
766
Special schools
3,063
Residential homes and individualised day
support projects
13,808
17,637
(ii) Restricted funds
community
services
206
Residential homes and individualised day
support projects
506
18,349		 Support &
Governance
costs
43
136
635
814
-
-
814		 Total
2021
809
3,199
14,443
18,451
206
506
19,163		 Total
2020
1,128
3,188
16,135
20,451
17
189
20,657
Office services
Quality assurance
Purchasing
Ops management
Personnel
Training
Property services
Finance services
Management
IT services
Health and safety
Development
Office pensions
Fundraising		 Total
2021
267
54
-
20
84
-
24
36
96
193
-
(6)
3
43
814		 Total
2020
383
61
(7)
28
44
24
50
28
134
103
19
-
3
76
946

Page 49

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

8 CHARITABLE ACTIVITIES COSTS (Continued)

Net expenditure for the year includes:-

2021 2020
£'000 £
Fees payable to the auditor for
Audit 14 30
Other services 3 -
Depreciation 713 639
Operating lease rentals 153 162

9. TRUSTEES REMUNERATION AND BENEFITS

No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

None of the trustees received or waived any remuneration during the year in respect of their services as trustees (2020: £nil)

cost of

the general insurance policy.

TRUSTEES' EXPENSES

The charity trustees were not paid or received any other benefits from employment with the charity, (2020: £nil). One trustees was reimbursed expenses during the year of £48 (2020: Two trustees £285).

10. STAFF COSTS

Wages and salaries
Social security costs
Pension contributions		 2021
£'000
11,496
968
485
12,949		 2020
£
12,178
1,019
490
13,687

Staff costs include a holiday pay accrual of £153,000 as at 31 March 2021.

The number of employees whose emoluments in the year exceeded £60,000 was as follows:

2021 2020
Number Number
£60,000 £70,000 1 1
£70,000 £80,000 1 1
£80,000 £90,000 1 -
£90,000 £100,000 1 1

Page 50

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

10. STAFF COSTS continued

Retirement benefits within a defined benefit scheme are accruing to 0 (2020: 0) of these staff and within a defined contribution scheme to 4 (2020: 3). The charity paid £29,646 (2020: £14,004) in respect of pension contributions on their behalf.

The average number of paid employees for the year was 507 (2020: 587).

The key management personnel of the charity this year comprise, the trustees, the Chief Executive, the Chief Operating Officer, the Chief Governance Officer and the Chief Finance Officer. The total employee remuneration and benefits of the key management personnel of the charity were £350,742 (2020: £351,415).

In order to maintain a quality care service, the charity has utilised external agency staff when operational requirements demand. The total costs incurred this year for use of such staff have amounted to £1,161,806 (2020: £1,422,833)

Page 51

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
Funds
INCOME AND ENDOWMENTS FROM:
Donations and legacies
188
Charitable activities
824
Special schools
2,557
Residential homes and individualised
support projects
13,107
Miscellaneous
10
Other trading activities
85
Investment income
247
Other income
11
Total
17,029
EXPENDITURE ON:
Raising funds
345
Charitable activities
1,128
Special schools
3,188
Residential homes and individualised
support projects
16,135
Miscellaneous
-
Total
20,796
Net gains/(losses) on investments
(745)
NET INCOME/(EXPENDITURE)
(4,512)
RECONCILIATION OF FUNDS:
Total funds brought forward
18,721
TOTAL FUNDS CARRIED FORWARD
14,209		 Restricted
Funds
429
-
-
8
-
-
-
-
437
-
17
-
189
-
206
-
231
839
1,070		 Total
Funds
617
824
2,557
13,115
10
85
247
11
17,466
345
1,145
3,188
16,324
-
21,002
(745)
(4,281)
19,560
15,279

Page 52

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

12. GOVERNANCE COSTS

Special Schools
Residential Homes and Individualised Support Projects		 2021
£'000
6
19
88
113		 2020
£
11
31
154
196

13. TANGIBLE FIXED ASSETS

COST
At April 1 2020
Additions
Disposals
Revaluation
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
Eliminated on disposal
Revaluation
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Freehold
Property
11,481
-
-
(874)
10,607
3,858
181
-
(368)
3,671
6,936
7,624		 Building
Adaptations
11,627
331
(816)
(326)
10,816
8,893
532
(816)
(240)
8,369
2,447
2,734		 Motor
Vehicles
71
-
-
-
71
71
-
-
71
-
-		 Totals
23,179
331
(816)
(1,200)
21,494
12,822
713
(816)
(608)
12,111
9,383
10,358

Included in the cost of freehold land and buildings is freehold land of £546,000 which is not depreciated.

Certain properties were transferred to the charity under trust deeds dated 8 April 1924 and 15 September 1976. At 31 March 2021 freehold property and adaptations relating to those properties are included in tangible fixed assets at a cost of £2.6m. Their market value is likely to be significantly different.

Page 53

Nugent Care 2019

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

14. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 April 2020
Additions
Disposals
Revaluation
At 31 March 2021
FAIR VALUE
At 31 March 2021
At 31 March 2020		 Listed
Investments
4,285
1,769
(1,769)
769
5,054
5,054
4,286

Investments have historically been held in two portfolios managed by Martin Currie Investment Management Limited and BlackRock Investment Managers. The BlackRock portfolio was liquidated during the year. The value of investments held at the year-end can be analysed as follows (2020 Martin Currie Investment Management Limited only):

UK equities
Overseas equities
UK bonds and gilts
UK property
unit trust
UK cash held on deposit		 2021
£'000
1,350
2,605
384
315
400
5,054		 2020
£
2,574
1,078
286
-
348
4,286

Page 54

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

15. INVESTMENT PROPERTY

At April 1 2020
Additions
Disposals
Revaluations
At 31 March 2021		 2021
£'000
143
-
-
-
143		 2020
£
310
-
(170)
3
143

The total fair value of £143,000 relates to one investment property. The value at the year-end has been determined following an in-depth review of sale prices for similar properties in the same area, taking into account the refurbishment of the property carried out in recent years.

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
Prepayments and accrued income
CURRENT ASSET INVESTMENTS
UK cash held on deposit		 2021
£'000
1,782
71
252
2,105
2021
£'000
-		 2020
£
1,881
193
261
2,335
2020
£
19

17. CURRENT ASSET INVESTMENTS

Page 55

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021
£'000
Bank loans and overdrafts (see note 20)
2,374
Trade creditors
359
Taxation and social security
195
Other creditors
887
3,815
Other creditors include:
A holiday accrual for £296,000
Deferred income at 31 March 2020
86
Increase in deferrals in the year
(4)
Deferred income at 31 March 2021
82
19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021
£'000
Bank loans (see note 20)
213
20. LOANS
An analysis of the maturity of loans is given below:
2021
£'000
Amounts falling due within one year on demand:
Bank overdraft
-
Bank loans
2,374
2,374
Amounts falling due within one and two years:
Bank loans
1-2 years
127
Amounts falling due within two and five years:
Bank loans
2-5 years
86		 2020
£
105
791
291
928
2,115
2020
£
294
2020
£
-
105
105
108
186

The loan financing is in the form of a secured loan with a variable interest rate.

Page 56

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

21. SECURED DEBTS

The bank overdraft facility and bank loans are secured on the portfolio of listed investments.

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets
Investments
Current assets
Current liabilities
Long term liabilities		 Unrestricted
Funds
9,383
5,197
1,923
(3,815)
(213)
12,475		 Restricted
Funds
895
895		 2021
Total
9,383
5,197
2,818
(3,815)
(213)
13,370		 2020
Total
10,358
4,429
2,901
(2,115)
(294)
15,279

Page 57

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

23. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Designated
tangible fixed assets
Designated
investments
Restricted funds
Specific
Home fund
Bet 365 adoption services
Grant income
TOTAL FUNDS		 At 1 April
2020
757
9,023
4,429
14,209
11
38
8
72
936
5
1,070
15,279		 Net
movement
in funds
(1,911)
(592)
769
(1,734)
-
-
-
(18)
(157)
-
(175)
(1,909)		 Transfers
between
funds
3,080
(382)
(2,698)
-
-
-
-
-
-
-
-
-		 At 31
March
2021
1,926
8,049
2,500
12,475
11
38
8
54
779
5
895
13,370

Page 58

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

23. MOVEMENT IN FUNDS continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated
fixed assets
Designated
investments
Restricted funds
Home fund
Bet 365 adoption services
Grant income
Covid 19 funding
TOTAL FUNDS		 Incoming
resources
16,879
-
16,879
3
1
-
55
487
546
17,425		 Resources
expended
(18,790)
-
(18,790)
(3)
(1)
(18)
(212)
(487)
(721)
(19,511)		 Gains and
losses
-
(592)
769
177
-
-
-
-
-
177		 Movement
in funds
(1,911)
(592)
769
(1,734)
-
-
(18)
(157)
(175)
(1,909)

Page 59

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

23 MOVEMENT IN FUNDS continued

Comparatives for movements in funds

Unrestricted funds
General fund
Designated
tangible fixed assets
Designated
investments
Restricted funds
Specific
Home fund
Bet 365 adoption services
Grant income
TOTAL FUNDS		 At 1 April
2019
(556)
8,768
10,509
18,721
13
36
7
89
689
5
839
19,560		 Net
movement
in funds
(3,767)
-
(745)
(4,512)
-
-
1
(17)
247
-
231
(4,281)		 Transfers
between
funds
5,080
255
(5,335)
-
-
-
-
-
-
-
-
-		 At 31
March
2020
757
9,023
4,429
14,209
13
36
8
72
936
5
1,070
15,279

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NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

23. MOVEMENT IN FUNDS continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated
investments
Restricted funds
Home fund
Bet 365 adoption services
Grant income
TOTAL FUNDS		 Incoming
resources
17,029
-
17,029
6
2
-
429
437
17,466		 Resources
expended
(20,796)
-
(20,796)
(6)
(1)
(17)
(182)
(206)
(21,002)		 Gains and
losses
-
(745)
(745)
-
-
-
-
-
(745)		 Movement
in funds
(3,767)
(745)
(4,512)
-
1
(17)
247
231
(4,281)

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Nugent Care 2019

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

23. MOVEMENT IN FUNDS continued

FUNDS AND TRANSFERS BETWEEN FUNDS

The tangible fixed asset funds represent the amount of reserves needed to provide the property and equipment for the charity to operate. They equate to the book value of fixed assets less loans used to fund those fixed assets.

The home fund and children's fund balances relate to amounts raised by individual projects and establishments. The balances are restricted, to be expended by the individual homes as and when required.

The Bet 365 adoption services fund is a specific donation to support the adoption service.

. ,

The grant income fund is made up of:

Grant income for the provision of a media wall and exercise equipment and to fund the cost of new doors and CCTV equipment.

Grant income for the refurbishment works to the bedrooms and bathrooms at one of the services. Grant income in respect of improvements at one of the services including:

CCTV Improvements. Security System. W.C. Locks on corridors. Dining Room furniture. Visitor System. Control Panel door replacements.

The transfer to the restricted tangible fixed assets fund was made when the monies were expended.

Grant income in respect of staff costs to allow staff training to take place.

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Nugent Care 2019

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

24. PENSION SCHEMES

Scheme (TPS), and the Aviva Pension Scheme. The total pension cost for the year was £489,930 (2020: £431,408).

a) Teachers' Pension Scheme

The charity participates in a multiScheme (England and Wales) ("the Scheme"), for its teaching staff. Con basis are credited to the Exchequer under arrangements governed by the Superannuation Act 1972. It is not possible or appropriate to identify the assets and liabilities of the Scheme which are attributable to the charity. Accordingly, the charity has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The verned by the Teachers Pension Scheme regulations 2014.

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

The next valuation result is due to be implemented from 1 April 2023.

The superannuation charge for the year represents total employer contributions payable to the scheme of £201,100 (2020: £160,416).

b) Aviva Pension Scheme

For staff not in the defined benefits scheme the charity operates a Stakeholder pension scheme. This is a unit-linked defined contribution scheme from Aviva. The total employer contributions for the year end were £201,100 (2020: £329,514).

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Nugent Care 2019

NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

25. CONTINGENT LIABILITIES

There were no material contingent liabilities in 2021 (2020: £nil).

26. CAPITAL COMMITMENTS

There were no capital commitments contracted, but not provided for, at the year-end (2020: £nil).

27. OTHER FINANCIAL COMMITMENTS

Guarantee dated 9 March 2010 in favour of Liverpool City Council for £53,500.

28. RELATED PARTY DISCLOSURES

Nugent Care is intrinsically linked with the Roman Catholic Archdiocese of Liverpool and has the incumbent Archbishop serving as President. This link is a major influence on the ethos, culture and objectives of the charity. Within this relationship, the Archdiocese has also conveyed properties for use by the charity in providing residential schools and homes.

Nugent Care controls Nugent Social Enterprises CIC (registered in England and Wales, registered number 08825282). Nugent Social Enterprises was incorporated in 23 December 2013 to operate The Courtyard Cafe and training centre with the aim of providing training for young people not in education, employment or training and employment for adults with learning disabilities. It began trading in May 2014 and ceased trading in May 2017 when the company became dormant. Its accounts have not been consolidated into the financial statements on Nugent Care on the grounds of immateriality.

Nugent Multi Academy Trust (operating as Nugent Academy Trust) was incorporated on 26th September 2019. The company is an academy trust and as such is a separate legal entity from Nugent Care.

However, the Corporate Trustee Nugent Care 2019, Normandie Wragg Nugent Care CEO and Alan Dean current Trustee and Director of Nugent Care 2019 are the members of the Academy Trust and are registered as persons with significant control over the entity at Companies House.

The Chief Finance Officer and the Chief Governance Officer of Nugent Care are both directors of the Academy Trust.

There has been no activity within the Trust during the year ended 31 March 2021.

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NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

29. POST BALANCE SHEET EVENTS

Coronavirus Business Interruption Loan

The charity repaid in full a Coronavirus Business Interruption Loan post year end in the sum of £2.25m.

Sale of Property

The sale of James Nugent Court, a former Adult Residential Care home, was completed post year end. The carrying value of the asset at 31 March 2021 was £3.59m.

30. MONEY

1 totalled £323,729 (2020: £292,073). In accordance with the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities this amount and the corresponding creditor are not included in these accounts.

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NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 31 MARCH 2021

Nugent Care 2019

31. OPERATING LEASES

Minimum lease payments due:
Within 1 year
Within 2
5 years
In more than 5 years
Special schools		 Land and
buildings
17
9
-
26		 Other
91
107
-
198		 Totals
108
116
-
224

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