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2023-03-31-accounts

St Cuthbert's Care (A company limited by guarantee) Annual Report for the year ended 31 March 2023 Registered Number 1645917 Registered Charity Number 512912

St Cuthbert's Care Annual Report for the year ended 31 March 2023 Contents Directors and Advisors...............-............................................................................................................. Strategie report................ Directors, report............ Independent audilor5' report lo the members of St Culhbert's Care....................................... Statement of financial activities lincorporaling an Income and Expenditure Accounl}.......................... Reconciliation of funds...................................................................................................... Balance sheet as al 31 March 2023..............................................-............................. 15 Stalernenl of Cash FIows...........................................................-.................................................................... 16 Accounting policies. Notes lo the financial slalemenls.........................................,......... 14 .21

St Cuthbert's Care Directors and Advisors for the year ended 31 March 2023 The dlreetors of the company who were in office during the year and up to the date of signing the financial statements were.. Directors Miss M Ashman Right Rev. Bishop R Byrne Right Rev. Bishop S Wright Mr M Dickson Mr N Gilbert MrsAJohnson Dr K Mannix Mr P Moran Mrs K Utwin {resigned Chief Executive and Director 31 March 20231 Iresigned Chair and Director 12 December 20221 (appointed 23 August 20231 (appointed Chief Executive 1 April 20231 lappoinled Chair 13 December 20221 Company secretary and registered office Mr N Gilbert Sl Cuthbert's House West Road Newcastle upon Tyne NE15 7PY Independent Auditors Pricewalerhousecoopers LLP Central Square South Orchard st￿et Newcastle upon Tyne NE13AZ Solicitors Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NE14BF Bankers National Weslminsler Bank PLC 16 Northumberland Street Newcastle upon Tyne NE17EL

St Cuthbert's Care Strategic report for the year ended 31 March 2023 The Directors present their strategic report for the year ended 31 March 2023. ObjeGtives and activities The Charity's Statement of Purpose reads.. st Culhbgrts Care is a charity working for the common good by enabling people lo develop lo Iheirpersonalpotenlial The Charity's Vision reads.. To achieve excellen￿ in all that we do The Charity is a frontline registered care provider which benefits the public as a whole and the core services below represent the Charity's principal aclivilies.. residential care homes for children, including fostering., a range of residential and day services for disabled children and adults., and o nursing and residential care homes for older people. In addition, the Charity fundraises lo provide services to support the most impoverished and disadvantsged people across the North East. The Charity's slralegie Five-year Plan for 2020-2025, was originally approved by the Direelors in 2019, and has been reviewed during 2022-2023. 11 Is revisited and formally reviewed every year by the Directors. The Directors have reviewed the Charity's Slalemenl of Purpose, together with ils Vision and Aims and Objectives and are satisfied that the Charity continues lo meet the requirements ofthe Charity Commission's guidance on public benefit. Achievements and performance The Charity's activities include a broad range of complex care services across the North East, regulated by Otsled for children's seNices and the Care Quality Commission ICQCI for adults, services. The regulators undertake regular and unannounced inspections. These inspections offer an independent measure of the Charity's performance and all of the Charity's services are rated Good. or 'Outstanding The charity's two day-resources for people with disabilities are not regulated areas of work. The Charity's regulated services, that are independently rated. reflect the high standards and quality care that are delivered by the Charity's care teams. The Charity's Vision is 'lo achieve excellence in all that il does" and there can be no beller measure of the Charity's performance than the feedback received from residents, families, our teams and fellow professionals The Directors consider these leslimonials to be a direct demonstration of the Charity's valLJes and progress. More detail can be aceessed from the Charity's Annual Review, website and social media pages al hll s.Illinklr.eelslcuthbertscare. As the Covid-19 reslriclions eased for the social care sector, the Charity refocused on ils strategic objectives and improving the occupancies in ils nursing and residential care homes which had been most affected by the pandemic.

St Cuthbert's Care The Charity's significant a¢hievements this year in¢lude". Being awarded Outstanding ratings from Ofsled al three of our Children's services. These ratings are testament lo the tireless efforts and dedication of our staff teams who provide exceptional care and support lo the children in our care. Successfully winning a lender lo provide support for 15 adults with learning disabilities in a purpose built selling In Newcastle, supporting the charity's strategy of operational growth across our disability services. Continued investment in our staff teams, personal and professional development lo enable them lo reach their full personal potential. Two exarnples of the charity's commitment lo the development of its staff teams are demonstrated in an employee initially employed as a Finance Assistant progressing lo become the charity's CEO over a 26 year period and a housekeeper progressing to become the registered Manager of one of the charity's nursing and residential care homes over 14 year period. The phased re-opening of our short break respite setvice in Newcastle following closure dLJring the pandemi¢. the last service to re-open. This service offers parenlslcarers a vital break to re-charge their balleries whilst their loved one enjoys a little holiday at the Alan Shearer Short Break service in Newcastle. Remaining an accredited Living Wage Employer. Our Charity is one of only a few charities operating in the adult ¢are sector in the North East lo be accredited. In addition the Diieclors approved a £200 cost of living payment, pro rata, lo all employees. Valuing employees will always be al the heart of our Charity's culture. The charity's Dementia Lead, Dr Ruth Cromarty, developed a dementia strategy based on research and nationally recognised good practice to further enhance our person-cenlred holistic approach to caring for sidenls living with dementia in our two nursing homes in Newcastle and Sunderland. As the final Covid-19 restrictions for care homes were lifted, our lunch club al Holy Cross in Sunderland was able lo re-open, providing a warm welcorne, hol meal and good company lo older, often isolated, people in the loca1 community. A solid financial performance despite the ending of the Covid-19 support grants from the government. Whilst the additional costs of keeping our residents 2nd staff safe rem8ined, the charity continued lo pay ils employees in full whilst they were isolating. The increased Costs ol living created additional financial pressures which impacted on the charity's results and were miligaled by the prudent level of rese￿eS the charity has built up. The recruilmenl of an IT Lead lo advance the charity's adoption of compulerised information systems. The Charity's strategic vision includes a focus on digital enhancements to maximise efficien¢ies and to improve working practices. Financial review The Slalemenl of Financial Activities for the year is set out on page 13 of the financial statements. A summary of the financial results and the work of the Charity is sel out below. Income generation The Charity's income increased by 3.83Q/o lo £10,549,03512022." £10,160,348). The majority of this increase reflects the improved occupancy levels in both nursing homes bul is offset by below inflation fee uplifts for all our services and a reduction of Covid-19 support grants from Government. Funding for the social care sector reslricls our ability to increase lees lo adequately reflect the cost of providing high quality care. Fundraising Donated income from the charity's supporters both directly and via the parishes increased bul 1$ Still 26 /0 below pre- pandemic levels. Donations and legacies enable the Charity to support the most vulnerable members ol society where often no other funding is available, such as our lunch club in Sunderlanol. The Charity Is most grateful to all of

St Cuthbert's Care its supporters. Fundoising is co-ordinated by the Charity's own employees, volunteers and patrons. No external fundraisers are engaged. Money is raised through voluntary contributions from the Charity's supporters. local businesses and organised events The Alan Shearer Foundation raised £491,423 during the year12022'. £488.8431. The Directors express their most sincere thanks lo patrons, Lainya and Alan Shearer, and family, for their unwavering support of the Charity. They WOLJld also like to acknowleclge and thank patron, Mike Browne, and volunteer Lesley Fu51on, for their continued efforts and dedication that are instrumental lo the success of the Foundation. The charity is deeply grateful lo Lainya, Alan and all members of the Foundation for the support they give so freely. The Charity is registered with the Fundraising Regulator and follows their Code of Fundraising Practice. The Charity does not participate in any fundraising that may be considered aggressive Of intrusive and has received no complaints during the year in connection with ils fundraising. Cashflow The charity'5 cash balance reduced by £123,332 during the year lo £2,503.462, reflecting the re-commencemenl of investing for the charity's future. This represents 8pproximately three months, expenditure and enables the Charity lo manage the financial challenges of higher inflation, constrained funding and also invest in new developments. Resources expended Total expenditure this year increased by 5.90/0 to £10,534,81512022'. £9,948,370). This reflects increases in salaries lo our employees lo maintain the charity's commitment lo remain a real Living Wage Employer and other higher operational costs generally due lo higher rate of Inflation. Employees and volunteers Sl Culhbert's Care relies on the skills and dedication of its employees and volunteers lo ensure that care seNices are person-centred and delivered with warmth and compassion. During the year, the Charity had an average of 268 12022.. 2911 full and part-lime employees delivering care and support. Volunteers, through their time and enthusiasm, add value lo the Charity's services, enriching the lives of the Charity's beneficiaries. Efforts lo recruit new volunteers throughout the Charity are on-going. The dedication and commitment of our care teams lo the Charity ensures our beneficiaries receive the best possible care. The training and development of ernployees not only helps lo achieve this for the people we support but also, in accordance with the Charity's Purpose, seeks to enable our employees lo develop lo their personal polenlial. We recognise the demands on our teams of working In the social care sector and of life generally and offer a free ¢onfidenlial counselling service available lo all our employees. These actions evidence the Charity's commitment to ils employees and very much reflect the Charity's culture in valuing and respecting every individual. The Charity's recruitment policies reflect ils eommilment lo equal opportunities in employment The Charity lakes all reasonable steps lo employ, train 8nd promote employees based on their experience, abilities and qualifications without regard lo age, disability, gender reassignment, marriage and civil partnership, pregnancy and malernily, race {including eolour, nalionalily and ethnic or national origin), religion or belief or sexual orientation. The Charity is also an approved user of the Positivo about Disabled People symbol and has achieved the Beller Health al Work aecredilation. The Charity is an accredited Living Vvage Employer. The Charity's gender pay gap report shows that the Charity's workforce is predominantly female a profile which reflects the historical wider nature of the social care sector. All employees are paid the same rate for the job grade regardless of gender. All new employees and volunteers undertake a thorough programme of indu¢lion training. This marks the beginning of a career-long learning programme 21 St Cuthbert's Care The employee handbook, together with employee

St Cuthbert's Care association meetings, intranet, team meetings and regular briefings help lo keep employees informed of the Charity's inilialives and performance. The Directors wish lo thank Moira Ashman for her dedication and commitment lo the charity over the last 33 years, the last eight years as Chief Executive and Trustee, following her retirement on 31 March 2023. Nic Gilbert, previously Oireclor of Finance of the charity, has been appointed lo succeed her as Chief Executive with effect from 1 April 2023. Plans for future periods The Directors consider the most appropriate way forward for the Charity is to deliver upon ils Five-year Plan for 2020-2025, an outline of which is noted below. The Chief Executive, supported by the senior management team, will focus upon the implemenlalion of this plan which will generate new income and will continue lo keep the Charity's employees al the heart of ils work. That every service achieves, and then maintains, its highest regulatory rating al all times, as a maller of course. Excellent progress is being is being made with the achievement of three outstanding rated seNices during the last financial year. That an appropriately skilled, trained and commercially aware senior management team is developed lo support the future direction of the charity. That the voices of seNice-users and st8ff, throughout the charity, are strengthened by embedding a stronger culture of inclusivity supported by improved communication channels. The Charity's HR Lead has commenced work on increasing opportunities for employee engagement and we are looking forward to hearing their views. That an environmental strategy is agreed and implemented that supports, enhances and sustains the charity's ecological efforts. Re-investment in and reconfiguration of, children's residentl81 services, lo ensure we Can respond positively lo the changing and demanding needs of young people in care today. Reslruclure and modernisalion of Fostering North East with the result of substantially Increased income streams. Further development of the Acquired Brain Injury IABII specialist provision al the Alan Shearer Centre. Continue the development of the dedicated person-¢enlred offering for those living with dementia in the Charity's nursing homes. Initiate feasibility work for extra care provision at Holy Cros5. Principal risk$ and un¢ertainti6s The Charity's core work is in frontline high-risk care provision, and as noted earlier in this report, risk management is embedded In every aspect of the Charity's activities. The Oireclors have considered the Charity's nsks and seek lo minimise them as lar as is practical The Directors consider the continual under-funding of services by commissioning bodies that is prevalent across the whole of the social care sector to be the most significant risk facing the Charity in the short to medium term and particularly due lo the higher cost of providing services. In addition, the Charity must operate with high occupancy levels. 11 is essential that consislenl higher occupancy levels are maintained to ensure regular cash flows. In turn, this enables the Charity to re-invest in ils services. Vvhilsl the increased occupancies in both our nursing homes are encouraging, further improvement is required and our forecasts and cashflow 811ow for 8 gradual improvement in occupancy levels throughout the next year. The reputation for delivering high quality care places the Charity al the forefront of excellent care delivery within the region amongst the placing authorities. The Charity also undertakes robust lee negotiations for every single setvice. In addition. being a Living Wage Employer enables the Charity lo allracl high calibre and committed teams, offering stability in a sector where recruilmenl is particularly difficult. Together, these actions, supported by a strong culture oftransparency and prudent stewardship, have allowed the Charity to manage this seclor-wide Issue of underfunding.

St Cuthbert's Care Covid-19 Pandemi¢ By the end of this financial year all reslriclions imposed on the social care sector h8d been removed and the Charity's senior management and care teams were able lo focus on delivering excellent care and support to those in our care, whilst still Continuing with infection control measures. The financial support to the social care sector in the form of grant funding ceased last year bul the additional costs of the measures implemented have not, bul this has not had a material impact on the financial results for 2022123 and the Directors expect the additional costs to reduce further during 2023124. The charity's forecasts for the coming year allow for increasing occupancy levels in the Charity's nursing homes and forecast a small operating surplus for 2023124. The Charity's cash reserves mean that should the forecasts not be achieved the Charity will remain able to pay its debts as they fall due beyond 12 months from signing this report. The Charity's work is the provision of essential care services commissioned by local authorities and there remains an intere51 and demand for the Charity's services. The Charity's excellent reputation with commissioning authorities adds further comfort. The Directors expect this coming financial year wi11 continue lo be challenging but are confident that through effective management, backed up by healthy cash reserves, the Charity will be able to manage the challenges ahead. More details about the Charity's services, testimonials and information on future developments can be found on the Charity's website." hll s'.Ilstculhbertscare or .uk. On behalf of the Board an 24 November 2023

St Cuthbert's Care Directors, report for the year ended 31 March 2023 The Directors present their report and the audited financial slalemenls for the year ended 31 March 2023. Structure, governance and management The Charity was founded in 1946 and then incorporated in England as a charitable company limited by guarantee on 23 June 1982. 11 is governed by Articles of Association which were last amended on 19 March 2014. Ils objects are lo carry out all forms of social care. Governance and internal control The Articles of Association allow for up lo 12 directors lo be appointed al any one time. The Directors are also Iruslees. The Board of Directors meets quarterly and has appointed a Chief Executive to manage the day-to-day a¢livilies The Chief Executive is a director. The Board is supported by three sub-committees.. The Audit, Finance and Risk sub-committee oversees the finances and management of risk for the Charity. Effective risk management is embedded within the culture of St Culhbert's Care. The managers of the Charity's services implement. review and amend risk management plans as and when required. A risk panel, comprising the Charity's key management personnel and the Director of Con)pliance, meets monthly lo assess all risks to the Charity, both potential and actual, and implements appropriate controls. The Remuneration sub-committee benchmarks and reviews salaries and benefits across the Charity. The Nominations sub-committee considers suitable applicants lo be proposed to the full Board for consideration for appointment as directors. Directors are interviewed and proposed by the Nominations sub- committee and appointed by invitation of the Bishop. The Charity aims lo ensure and maintain a balance of skills and experience relevant lo the work and business needs of the Charity Key management personnel Chief Executive Director of Finance & IT Director of Care Director of Children's Services Director of Compliance HR Lead Moira Ashman (retired on 31 March 20231 Nic Gilbert (appointed Chief Executive on 1 ApTII 20231 Amanda Head Jody Scott Gill Ennis Denise Hall Directors The directors of the company during the year and up lo the dale of signing are listed on page one. The Bishop of the Roman Catholic Diocese of Hexham & Newc8s11e has ex-ofFi¢io status on the Board. The Charity inducls every director upon appointment and provides training days These are led by the Chief Executive and typically, include refresher loining on Iruslees and ojireclors, legal duties and responsibilities. Visits lo the Charity's services will be reinstated this year and arranged for the Directors so they can meet the Charity's beneficiaries and employees. This maximises informed decision making. Financial revlew The Statement of Financial Activities for the year is sel out on page 13 of the financial slalements. A summary of the financial results and the work of the Charity is included in the Strategic report.

St Cuthbert's Care Investment policy Under Ihe Articles of Association, the Charity has the power lo make any investment which the Directors see lil. Currently, and throughout the year, funds have been invested in short term cash deposits only. The Oireclors consider this to be the most appropriate course given the short term needs of the Charity. Insurance of directors The company had during the year ended, and continues to maintain, appropriate insurance for the Directors in respect of liabilities that may arise against them personally in ¢onnecb'on with their duties as directors ol the company and as Iruslees. Pay policy for senior employees The pay of senior employees Is reviewed annually by the Directors. Part of this process includes the benchmarking of Socal market rates in similar organisalions. Reserves policy The Directors require the Charity's reserves to be sufficient to allow Sl Cuthbert's Care the flexibility lo continue lo operate and develop in accordance with the Charity's Statement of Purpose and Article5 of Association. The Directors believe the general funds should reflect one month's budgeted expenditure with a maximum margin of 1 OQ/o. The current level of reserves complies with this statement. The Directors review the policy on reserves on an annual basis. In addition there is one designated fund which is maintained by the Charity and details can be found in note 18 in the financial statements. Dividends and transfers to reserves The surplus of incoming resources over expenditure amounted lo £14,22012022.' £211,978) and has been taken lo reserves. In accordance with the company's Articles of Assoeialion no dividends are payable. Statement of directors, responsibilities The Directors (who are a150 Trustees of Sl Culhbert's Care for the purposes of charity lawl are responsible for preparing the Directors, Report lincluding the Strategic Report) and the financial slalemenls in accordance with applicable law and regulations. Company law requires the Directors lo prepare financial statements for each financial year. Under that law the Directors have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting Standard appli¢8ble in the UK and Republic ol Ireland" and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law, the Directors must not approve the financial slalements unless they are satisfied that they give a true and fair view of the slate of affairs of the charitsble 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 slatemenls, the Directors are required lo.. select suitable aeeounling policies and then apply them consislenlly., observe the methods and principles in the Charities, SORP", make judgements and eslimales that are reasonable and prudent., stale whether FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland subject lo any material departures disclosed and explained in the financial statements", and prepare the financial slalements on the going concern basis unless il is inappropriate lo presume that the ¢harilable company will continue in business.

St Cuthbert's Care The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and lo enable them lo ensure that the financial 51alemenls comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps lor the prevention and detection of fraud and other irregularities. The Directors are responsible for the maintenance and integrity of the charitable company's website and social media accounts Legislation in the United Kingdom governing the preparation and dissemination of finan¢ial statements may differ from legislation in other jurisdictions. Disclosure of information to audltors In so far as the Directors are aware at the lime of approving this report.. there is no relevant audit information of which the Company's auditors are unaware, and eaeh director has taken all the steps that helshe ought to have taken as a director in order to make himselflherself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. Independent Auditors The auditors, Pricewalerhousecoopers LLP, have indicated their willingness lo continue in office and a resolution concerning their reappointment will be proposed at the Annual General Meeting. On behalf of the Board oran Chair 24 November 2023

St Cuthbert's Care Independent auditors, report to the members of St Cuthbert's Care Report on the audit of the financial statements Opinion In our opinion, St Culhbert's Care's financial statements Ilhe financial slalemenls").. give a true and fair view of the slate of the charitable company's affairs as al 31 March 2023 and of ils incoming resources and application of resources, including ils income and expenditure, and cash flows. for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" and applicable18wI, and have been prepared in accordance with the requiiements of the Companies Act 2006. We have audited the financial statements, included within the Annual Report {Ihe Annual Report"), which comprise.. the Balance sheet as at 31 March 2023", the Slalement of financial activities lincorporaling an income and expenditure account), the Reconciliation of funds, and the Slalemenl of Cash Flows for the year then ended". the accounting policies,. and the note5 to the financial statements. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI I'ISAS (UKI") and applicable law. Our responsibilities under ISAS IUKI are further described in the Auditors, responsibilities for the aLJdit ol the financial statements section of our report. We believe that the audit evidence we have obtained Is sufficient and appropriate lo provide a basis for our opinion. Ind8pendence We remained independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. Conclusions relating to going concern Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the charitable company's ability to continue as a going concern for a period of al least ￿e1ve months from the dale on which the financial statements are aulhorised for issue In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of aceounling in the preparation of the financial slalemenls is appropriate. However, because not all future events or conditions can be predicted. this conclusion is not a guarantee as to the charitable company's ability to continue as a going concern. Our responsibilities and the responsibilities of the Iruslees with respect lo going concern are described in the relevant sections of this report. Reporting on other information The other Information comprises all of the information in the Annual Report other than the financial statements and our auditors, report Ihereon. The trustees are responsible lor the other information. Our opinion on the financial slalemenls does not cover the other information and, accordingly, we do not express an audit opinion or, except to the exlenl otherwise explicitly slated in this report, any form of assurance Ihereon. In connection with our audit of the financial slalemenls, our responsibility is lo read the other information and, in doing so, consider whether the olher information is materially inconsislenl with the financial statements or our knowledge obtained in the audit, or otherwise 8ppears to be materially misslaled. If we identify an apparent material inconsistency or material misslatemenl, we are required lo perform procedures lo conclude whether there is a material misslalement of the financial slalemenls or a material io

St Cuthbert's Care Independent auditors, report to the members of St Cuthbert's Care (continued) Reporting on other information (continued) misslatemenl of the other information. If, based on the work we have performed. we conclude that there is a material misstalemenl of this other information, we are required to report that fact. We have nothing lo report based on these responsibilities. With respect to the Strategic Report and Directors, report. we also considered whether the disclosures required by the UK Companies Act 2006 and Charities Act 2011 have been Included. Based on our work undertaken in the course of the audit, the Companies Act 2006 require5 us also to report certain opinions and matters as described below. Slrategic Report and Directors reports In our opinion, based on the work undertaken in the course of the audit the information given in the Strategic Report and the Directors, report for the period ended 31 March 2023 is consistent with the financial slalemenls and has been prepared in accordance with applicable legal requirements. In light of the knowledge and understanding of the charitsble company and its environment obtained in the course of the audit, we did not identify any material misslatemÈnls in the Str3legi¢ Report and the Direclorfs report. Responsibilities for the financial statements and the audit Responsibilities of the Iruslees for the financial statements As explained more fully in the Statement of directois, responsibilities. the trustees {who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view The trustees are also responsible for such internal control as they determine is necessary lo enable the preparation of financial statements that are free from material misslalemenl, whether due lo fraud or error. In preparing the financial stalemenls, the Iruslees are responsible for assessing the charitable cornpany's ability lo continue as a going concern. disclosing, as applicable. matters relale(J lo going concern and using the going concern basis of accounting unless the Iruslees either intend lo liquidate the charitable company or to cease operations, or have no realistic allernalive bul lo do so. Auditors, responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstalemenl, whether due lo fraud or error, and lo issue an auditors, report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misslalement when Il exists. Misslalements can 8rise from frÉud or error and are considèred material if, individually or in the aggreg21e, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financi21 slalemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl m21erial misstalemen15 In respect of irregularities, including fraud. The exlenl to which our procedures are Capable of dele¢ling Irregularilie5, including fraud, is detailed below. Based on our understanding of the charitable company and ils environment, we identified that the principal risks ol non-compliance with laws and règulations related to non-compliance with laws and regulations related lo Care Quality Commission regulations in respect of care homes operated by the Charity, and we considered the exlenl lo which non-compliance might have a material effect on the financial slalemenls. We also considered those laws and regulations that have a direct impact on the financial slalemenls such as the Companies Act 2006 and Charities Act 2011. We evaluated management's incentives and opportunities for traudulent manipulation of the financial statements {including the risk of override of

St Cuthbert's Care

Independent auditors' report to the members of St Cuthbert's Care (continued)

Auditors' responsibilities for the audit of the financial statements (continued)

controls), and determined that the principal risks were related to posting manual journal entries to manipulate financial performance. Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.

Use of this report

This report, including the opinions, has been prepared for and only for the charitable company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

Thomas Dodd (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Newcastle Upon Tyne 29 November 2023

12

St Cuthbert's Care Statement of financial activities (incorporating an Income and Expenditure Account) for the year ended 31 March 2023 Unr¢$tri¢ied funds Re$tri¢ted fund¥ 2023 Total 2022 Total Note Income Income fmm charitable 8Ctivities ca￿ for children 2.418,702 2,418,702 2,358,635 Care for people with disabilities 2,65S,880 2.655.880 2,568,895 Care for older people 3,890,065 3,890,065 3,395,315 Grants receivable 16,671 16,671 290.274 Fostering & social work 929,096 929,096 924.750 Income Imm donations. legacies ond other trading activity Donations 73.919 178.971 252,890 11,903 355.065 291.171 Legacies Other trading activities Investment income 11,903 26,019 304,410 879 42,613 312,452 13,133 6,630 18.763 other income Total income 10,051,982 497,053 10,549,035 10,160,348 Expendituro ExpendilLJre on charitable activities 10,162.008 247.666 10,409,674 9,826,357 Expenditure on ralslng funds Donations and legacies 5,291 5.448 5,291 4,630 Other trading activities Total expenditure 114,402 119,850 362,068 10,534,815 117,383 10,172,747 9,948,370 Net Ilos$l l income for the year 1120.7651 134,985 14,220 211,978 All operations are continuing. All gains and losses in the year are included in the Slalemenl of Financial Activities.

St Cuthbert's Care Reconciliation of funds for the year ended 31 March 2023 Unrestricted Restricted funds funds Total 2023 Total 2022 Fund balances al 1 April 2022 6,549,511 682,157 7,231,688 7,019,690 Nel Ilossl l income for the year 1120,7651 134,985 14,220 211,978 Fund balancgs at 31 Ma￿h 2023 6,428,748 817,142 7,245,888 7.231.668

St Cuthbert's Care Balance sheet as at 31 March 2023 Company registration number: 1645917 Note 2023 2022 Fixed assets Tangible assets 4.942,051 5,001,597 Total flxed assets 4.942,051 5,001,597 Current assets Debtors 10 829,743 615,810 Cash al bank and in hand 2,503,462 2,614,210 Total current assets 3,333,205 3,230,020 Creditors: amounts falling dug within one year 11 1716.045) 1651,7401 Net current assets 2,617,160 2,578.280 Total assets less current liabilities 7,559,211 7,579.877 Creditors.. amounts falling due after more than one year 12 1250,0001 1275,0001 Provisions for liabilities and charges 13 163,323 173.2091 Net assets 7,245,888 7,231,668 The funds of tho Charlty Unre8trlcted funds General funds 18 800,000 800,000 Designated funds. Charity assets fund 18 5,628,746 5,749,511 6,428,746 6.549,511 Restricted funds 18 817,142 682,157 Total funds 18 7,245,888 7,231,668 The financial slalements on pages 13 10 28 were approved by the Board of Directors and were signed on Ils behalf by.. Moran hair 24 November 2023

St Cuthbert's Care Statement of Cash Flows for the year ended 31 March 2023 Note 2023 2022 Cash flows from operatlng activities Nel cash provided by operating activities 15 23,799 179,220 Cash flows from investing activities Interest received 18.763 879 Purchase of tangible fixed assets {153,3101 {31,6781 Net cash used in investing activitiès {134,547) 130,7991 Cash flovts from financlng activitles Net cash used in financing activities Change in cash and cash equivalents in the reporting period 16 1110,748) 148.421 Cash and cash equivalents al the beginning of the re ortin eriod 2.614.210 2,465,789 Cash and cash equivalents at the end of the reporting eriod 2,503,462 2,614.210

St Cuthbert's Care Accounting policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the p￿ paralion of the financial slalemenls are as follows.. Basis of preparation The financial statements have been prepared in ac¢ord8nce with Accounting and Reporting by Charities. Statement of Recommended Practice applicable lo charities preparing their financial slalemenls in accordance with the Financial ReFX)rting Standard applicable in the UK and Republic of Ireland IFRS 1021- (Charities SORP FRS 1021. the Financial Reporting Standard applicable in the UK and Republr ot Ireland IFRS 1021 and the Companies Act 2006 Preparation of the Financial Statements on a going con¢em basis In the year ended 31 March 2023 the charity recorded a surplus for the year of £14,220 and had a year end cash position of £2,503,462 with no borrowings. Despite the end of Government grants lo help miligale the costs associated with the addition21 measures implemented lo keep residents 8nd staff safe from Covid-19, the pandemic did not have a material impact on the charity's finances during the year lo 31 March 2023. The charity's work is the provision of essential care services commissioned by local authorities and there remains a strong interest and demand for the charity's services Referrals and admissions lo our two nursing homes increased during the year following the easing of reslriclions on care homes and the charity's excellent reputation with commissioning authorities adds further comfort for 2023124. The Charity's forecasts for the coming year factor in the higher rale of inflation and the impact this has on the goods and serviees the charity requires to deliver ils services. The charity has no borrowings but does have cash on deposit so will beneht from the higher interest rates although deposit rates are below the level of inflation. Employee payroll costs account for the majority of the Charity's expenditure and the increased cost of living necessilaled higher than usual salary increases Negotiations are still ongoing with local authorities and the lull cost may not be covered by fee increases due to funding constraints. However, the Charity's eash reserves give comfort that this would be manageable in the short term, including at least the next 12 month5. The Directors have reviewed and assessed the financial performance for the first quarter of 202312024. the results are in line with expectations with a small Surplus being generated from operations. A cash flow forecast for the period to November 2024 has been prepared. which considers realistic downside cash flow sensilivilies and this together with continued demanci for the Charity's ¢are services gives the Directors onfidence in continuing lo adopt the going concern basis of accoL¢nling.

St Cuthbert's Care Accounting policies (continued) Incoming resources Income Is recognised when the Charity has entillemenl to the funds, any performance conditions attached lo the ilemlsl of income have been met, it is probable that the income will be received and the amount can be measured reliably. For legacies, entillemenl is the earlier of the dale on which either.. the Gharity is aware that probate has been granted, the eslale has been finalised and nolificalion has been made by the executorslsl lo the Charity that a distribution will be made. or when a distribution is received from the estate. Receipt of a legacy is only considered probable when the amount can be measured reliably and the Charity has been notified of the executor's intention to make a distribution. Donated goods and services The value of donated goods lo the Charity which are for resale are recognised in the financial statements as income when sold due lo the low-value of items received. In accordance with the Charities SORP IFRS 102}, volunteer lime is not re¢ognised", details about the volunteers, contribution can be found in the Directors, report. Resources expended All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related lo the category. Support costs include expenditure which cannot be directly attributecj lo particular headings and have therefore been allocated to activities on the basis of employee costs. Governance costs represent the legal and professional fees of running the Charity and costs associated with prepanng and holding Board meetings and are included within support costs. Resources expended include attributable VAT which cannot be recovered. Tangible fixed assets Fixed assets cosling more than £7,500 are capitalised and included at purchase cost, together with any incidental costs of acquisition. Depreci8tion is calculated so as lo write off the cost of tsngible fixed assets, less their estimated residual values, on a slraighl-line basis over their expected lives. The principal annual rates used for this purpose are.. Freèhold land Furniture, equipment and plant Motor vehicles Assets in the course of construction 5-33 20 Freehold and long leasehold buildings are depreciated over 50 years or, rf shorter, over the period of the lease.

St Cuthbert's Care Accounting policies (continued) Fixed asset investments Fixed asset investments are stated al the lower of cost or nel realisable value. Operating leases Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Rentals payable are charged on straight line basis over Ihe term of the lease. Debtors Trade and other debtors are recognised al the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and In hand Cash al bank and cash in hand includes cash and short term highly liquid investments wrth a short maturity of three months or less from thè dale of acquisition or opening of the deposit or similar account. Creditors and provisions Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event Ihatwill probably result in the transfer of funds lo a third paty and the amount due lo sellle the obligation can be measured or eslimaled reliably. Creditors and provisions are normally recognised al their settlement amount afler allowing for any trade discount due. Financial Instruments The Charity only has Iinancial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised al transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Grants reeeivable Grants, including those for the purchase of fixed assets, are recognised in full when the Charity has entitlement lo the funds, any performance conditions allached lo the grants have been mel, il is probable that the income will be received and the amount can be measured reliably and is not deferred. Fund accounting General funds are unreslricled funds which are available for use al the discretion of the Directors in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unreslricled funds that have been sel aside by the Directors for particular purposes. The aim and use of each designated fund is sel out in note 18 to the financial statements. Reslricled funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. 19

St Cuthbert's Care Accounting policies (continued) Pension ¢o$ts The Charity makes available a defined contribution pension scheme to employees to which it contributes. The scheme originally sel up as a stakeholder pension scheme meets the automatic enrolment rules. There is a historical unfunded pension liability and adjustments to this pension liability, referred to in note 13, are made in line with actuarial factors based on the invoiced costs from the administering authority and adjusted lo include a cost of living increase. These costs are included in the SOFA. Critlcal accounting estimates and areas of judggment Preparation of the fi'nancial statements reqLJires management lo make estimates and judgements. These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed lo be reasonable under the circumstances. There were no significant eslimales or judgements made during the year which had a material impact on the results reported in the financial stalemenls. 20

st Cuthbert's Care Notes to the financial statements for the year ended 31 March 2023 1 Expenditure on charitable activities Direct costs Support Costs 2023 2022 Care for people with disabilities 2,575,446 246,643 2,822.089 2,578,650 Care for older people 4,364,493 415,764 4,780,257 4.555.254 Care for children, fostering & social work 2,608,694 198,634 2,807,328 2,692,453 9,548.633 861,041 10,409,674 9,826,357 2 Expenditure on raising funds Direct costs Support costs 2023 2022 Voluntary income, donations & legacies Activities for generating funds 4,778 513 5,291 4,630 118,841 1,009 119,850 117.383 123,619 1,522 125,141 122.013 3 Support costs Support costs, including governance costs of £42,35912022.' £29,284), not directly attributable lo projects have been allocated on the basis of employee costs and are analysed below.. Employee costs Depreciation Other Costs 2023 2022 Charitable activities 545,513 19,586 295.942 861,041 827,572 Raising funds 964 35 523 1,522 1,934 546.477 19,621 296,465 862,563 829,506

St Cuthbert's Care 4 Employee costs 2023 2022 Employee costs: Wages and salaries 7,261.645 6,789.411 Social security costs 602,479 562,899 Pension costs 144,177 151,013 8.008,301 7,503,323 The pension Costs were charged through the Statement of Financial Activities in respect of the defined contnbulion scheme operated for employees and allocated be￿een activities both reslricled and unrestricted funds on the basis of employee costs. The company maintains insurance for its employees in respect of their duties as employees as part of ils overall insurance policy. Two employees received emoluments above £60,00012022'. two). One of the employees Is in the band £60,000￿70,0OD(2o22. one) and one employee is in the band £80,000-£90,000 12022. one). The key management personnel of the Charity comprise the Chief Executive, the Director of Finance & IT. the Director of Care, the Director of Children's Services, the Director of Compliance and the HR Lead. The total employee benefits of the key management personnel of the Charity were £424,49012022'. £390,932). The average monthly number of employee5. analysed by function was.. 2023 2023 Full-Time Equivalent 2022 2022 Full-Time Equivalent Number Number Charitable activities 266 215 289 215 Expenditure on raising funds 268 216 291 217 22

St Cuthbert's Care S Directors, emoluments 2023 2022 Aggregate emoluments and fees 155,925 154,350 Emoluments are paid to directors, M Ashman and N Gilbert, for their services as direelors and not as trustees of the Charity. Provision for these payments is made in the company's Articles of Association. Included in the above are contributions made lo the Charity's pension scheme in respect of these directors of £7,42512022.' £7,3501. Directors received no reimbursement of travel expenses in the year12022'. £Nill. Other than as noted above, no director was entitled lo nor received any remuneration for their servi¢es 12022.. £Nill or were accruing benefits under the pension schemes12022'. £Nil} or received reimbursement of their expenses12022.' £Nill. 6 Net income for the year Nel income for the year is staled after eharging.. 2023 2022 Depreciation charge for the year Auditors, remuneration for audit services 212.856 206,549 36,960 23,940 Operating lease rentals for land and buildings 11,188 16,340 Loss on disposal of assets 3.946 7 Taxation The company is a charity established under the Charities Act 2011. 11 is therefore exempt from laxalion in respect of income and capital gains received within categories covered by S505 Income and Corporation Taxes Act 1988 or S256 Taxation of Chargeable Gains Act 1992, to the exlenl that such Income or gains are applied lo charitable purposes only. 23

St Cuthbert's Care 8 Tangible assets Freehold Furniture equipment and plant long leasehold buildings Assets in the course of ¢on$truction Motor vehicles Total Cost At 1 April 2022 6,296,922 2,518,509 73,656 8,889.087 Additions 103,240 50,070 153,310 Disposals At 31 March 2023 6,296,922 2,621,749 73.656 50.070 9,042,397 Accumulated Depreciation Al 1 April 2022 2.081,059 1,733.133 73,298 3,887.490 Charge for the year 97,500 114,998 358 212,856 Eliminated in respect of dis osals At 31 March 2023 2,178,559 1,848,131 73.656 4,100,346 Net book value At 31 March 2023 4,118,363 773,618 50,070 4,942,051 At 31 March 2022 4,215,863 785,376 358 5,001,597 9 Capital commitments C2pilal expenditure aulhorised and contracted for bul not provided for in the accounts amounts to £237,401 12022". £nill. This includes both leasehold improvements to one of the charity's children's homès and the replacement and expansion of a play park. Both works will be ¢ompleted during the 2023-24 financial year. 10 Debtors 2023 2022 Trade debtors 466,544 330,727 Other debtors 4,024 928 Prepayments and accrued income 359,175 284,155 829.743 615,810 24

St Cuthbert's Care 11 Creditors: amounts falling due within one year 2023 2022 Trade creditors 253,348 148,412 Other creditors 11,569 13,079 Taxation and social security 151,389 169,444 Accruals and deferred income 299,739 320.805 716,045 651,740 12 Creditors: amounts falling due after more than one year 2023 2022 Deferred income 250,000 275,000 250,000 275,000 The Directors expect the deferred income lo be released lo the Slalement of Financial Aelivities over the next 10 years.11 relates lo the prepayment of rental incorne for office space by the Roman Catholi¢ Diocese of Hexham & Newcastle and is being released al a rale of £25,000 per annum12022". £25,000>. 13 Provisions for liabilities and charges Analysis of amounts charged through the statement of financial activities Pension provision Al 1 April 2022 73,209 Established during the year Ulilised during the year 19,8861 At 31 March 2023 63,323 The pension provision relates to the unfunded pensions liabilities for former teachers of two schools formerly managed by the Charity. The provision is updated annually based upon actuarial calculations. The Directors expect all liabilities lo be mel over the next 8 years. 25

St Cuthbert's Care The provision is anticipated to fall due as follows.. 2023 2022 In less than one year Between one and two years 10,368 9,600 10,679 9,888 Between Iwo and five years 21,778 30,554 In more than five years 20.498 23,167 63,323 73,209 14 Share capital The company does not have any share capital and is limited by guarantee. The members of the company are the Directors and their guarantee is limited lo £1 each. 15 Reconciliation of net incoming resources to net cash provided by operating activities 2023 2022 Nel incoming resources Depreciation on tangible fixed asset5 Loss on disposal of fixed assets 14,220 211,978 212.856 206,549 3,946 Decrease in deferred income {25,0001 125,0001 Decrease in provisions 19,886 111,0041 Ilncreasel I decrease in debtors 1213,933} 2,815 Increase I (decrease} in creditors 64,305 1209,1851 Interest received 118.7631 {8791 Net cash provided by operating activities 23,799 179,220 26

St Cuthbert's Care 16 Reconciliation of net cash flow to movement in net cash resources 2023 2022 Change in cash and cash equivalents in the reporting period 1110,7481 148.421 Movement in nel funds for the year Net funds at 1 April 2022 1110.7481 148,421 2,614,210 2,465,789 Net funds at 31 March 2023 2,503,462 2,614,210 17 Analysis of net cash resources 1 April 2022 31 March 2023 Cash flow Cash at bank and in hand 2,614,210 {110,7481 2.503,462 Net funds 2,614,210 1110,7481 2,503.462 18 Statement of funds Al 1 April 2022 At 31 March 2023 In¢ome Expenditure Transfers General funds 800,000 10,051,982 110,172,747) 120,765 800,000 Designated funds Charity assets fund 5,749,511 {120,7651 5,628,746 Total unrestricted funds 6,549,511 10,051,982 110,172,747) 6,428.746 Restricted funds.. Alan Shearer Foundation 682,157 497,053 1362,0681 817,142 Total restrlcted funds 682.157 497.053 1362,0681 817,142 Total funds 7.231,668 10.549,035 110,534,815) 7,245,888 The Gèneral fund represents the free funds of the Charity which are not designated for particular purposes with excess funds being transferred to the Charity assets fund. The Charity assets fund represents those funds that have been designated by the Directors for the provision of existing services in furtherance of the Charity's objects. The charity has one reslricled fund. The Alan Shearer Foundation which represents those funds raised by the Foundation which have not yel been spent on charitable activities. 27

St Cuthbert's Care 18 Statement of funds (continued) Analysis of net assets bebNeen funds Rostri¢t•d Designat¢d funds funds Gen¢ral funds Total Fund balances at 31 March 2023 are represented by.. Fixed assets 4,942,051 4,942,051 Current assets 817,142 964.018 1,552,045 3.333,205 Current liabilities 1716,0451 {716,0451 Long term liabilities and provisions 1277,3231 {36,000} 1313,3231 817,142 5,628,746 800,000 7,245,888 19 Related party transactions The Charity has a close but arm's length working relationship with the Roman Catholic Diocese of Hexham & Newcastle, which is also a charily. The Charity invoiced £177,593 12022.. £143,655) lo the Roman Catholic Diocese of Hexham and Newcastle in respect of shared c051s associated with the provision of offices for both parties and care home fees for retired priests. As al 31 March 2023 £12,211 {2022.' £20,164) remained outstanding and is included in debtors. 28