St Cuthbert's Care (A company limited by guarantee) Annual Report for the year ended 31 March 2024 Registered Number 1645917 Registered Charity Numbèr 512912
St Cuthbert's Care Annual Report for the year ended 31 March 2024 Contents Directors and Advisors . Directors. report (including the strategic report) Independent auditors, report lo the members of St Cuthbert's Care........................................................10 Statement of financial activities (incorporating an Income and Expenditure Account)..........................12 Reconciliation of funds . 13 Balance sheet as at 31 March 2024.. ................................................................ 14 Statement of Cash Flows.-........................................ Accounting policies . Notes lo the financial statements.. 15 16 .20
St Cuthbert's Care Directors and Advisors for the year ended 31 March 2024 The directors of the company who were in office during the year and up to the date of signing the financial statements were: Directors Right Rev. Bishop S Wright Mr M Dickson Mr N Gilbert Mrs A Johnson Dr K Mannix Mr P Moran Mrs K Urwin (Appointed 23 August 2023) (Chief Executive) (Chair} Company secretary and registered office Mrs J Nichol St Culhbert's House West Road Newcastle upon Tyne NE15 7PY Independent Auditors CLA Evelyn Partners Limited 17 Queens Lane Newcastle upon Tyne NE1 1RN Solicitors Muckle LLP Time Central 32 Gallowgale Newcastle upon Tyne NE14BF Bankers National Weslminsler Bank PLC 16 Northumberland Street Newcastle upon Tyne NE17EL
St Cuthbert's Care Directors, report for the year ended 31 March 2024 The t)irectors present their strategic report for the year ended 31 March 2024. Objectives and activities The Charity's Statement of Purpose reads-. st Cuthbert's Care is a charity working for the common good by enabling people to develop to Iheir personal potential The Charity's Vision reads= To achieve excellence 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 activities.. 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 to provide services to support the most impoverished and disadvantaged people acr055 the North East. The Charity's strategic Five-year Plan for 2020-2025, was originally approved by the Directors in 2019, with progress reviewed during this period. The Directors have approved the Charity's next Five-year Plan for the period 2025-2030, more details are provided in the plans for future periods section of this report. The Direclors have reviewed the Charity's Statement of Purpose, together with its Vision and Aims and Objectives and are satisfied thatthe Charity continues to meet the requirements ofthe Charity Commission's guidance on public benefit. Achievements and performance The Charity'5 activities include a broad range of complex care services across the North East. regulated by Ofsted for children's setvices and the Care Quality Commission {CQCI for adult services. The regulators undertake planned 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 day cenlres for people with disabilities are not regulated areas of work. The Charity's regulated serwices, 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 it does" and Ihere can be no better measure of the Charity's performance than the feedback received from residents, families, our teams and fellow professionals. The Directors consider these testimonials to be a direct demonstration of the Charity's Values and progress. More detail can be accessed from the Charity's Annual Review. website and social media pages al htl s'.Illinktr.eelstculhbertscare.
St Cuthbert's Care The Charity's significant achievements this year include= st Catherine's Nursing Home becoming the first care home in Newcastle lo be accredited with the prestigious Gold Standard Framework (GSF) Hallmark Quality Award for end-of-life care. This national recognition is a testament lo the exceptional dedication of our team in ensuring residents live with dignity in their final days. In fact, St Catherine's exceeded expectations during the inspection, achieving an impressive 71 out of 75 points. Introducing a range of key inilialives across the Charity, focused on employee wellbeing and professional development. Enabling ernployees to share ideas or concerns so that we can support them beller. During the year we trained 17 Mental Health First Aiders across our services so they can respond lo employees needing support either professionally or personally and were awarded the "Good Work Pledge" which recognises the Charity's commitment to fair wages, qua5ity jobs and opportunities for personal growth. Being an acGredited Living Wage Employer is one way the Charity demonstrates how it values ils employees and rewards them for their continued dedication and care for the people we support. It is becoming increasing5y difficult to maintain this due lo the funding constraints as demonslraled by other organisations having to withdraw from the scheme. As part of our ongoing dedication to continuously improve the lives and comfort of the people we support, especially those living with dementia, Dr. Ruth Cromarty. our Dementia Lead, has overseen the installation of circadian lighting in our dementia care areas. This innovative lighting system mimics natural daylight patterns, helping to improve sleep, mood and daytime alertness. while also reducing the risk of falls. Opening our second independent living flat at Holy Cross, Sunderland. These modern flats offer the ideal balance of independence alongside 2417 care and support, giving peace of mind lo both residents and their families. Providing over 1,600 free nutritious meals to members of our Alan Shearer Centre and their families, allowing them to focus on enjoying the centre's activities without the worry of additional costs. These small yet meaningful actions demonstrate our commitment lo supporting people in ways that make a genuine difference. The installation of a state-of-the-art immersive room ha5 quickly become a favourile amongst our members al the Alan Shearer Activity Cenlre. With ils innovative design, members can explore outer space, dive into underwater adventures 2nd enjoy interactive activities Ihal engage both visually and audibly, slimulaling the senses. The regular review and refurbishment of our services is how we ensure they remain relevant lo the need5 of the people we support. Financial review The Statement of Financial Activities for the year is set out on page 12 of the financial slalements. A summary of the financial results and the work of the Charity is set out below. The Charity's income increased by 18.66 % 10 £12,517.644 (2023.. £10,549,035). The majority of this increase reflects the improved occupancy levels in both nursing homes and adult disability service but is offset by below inflation fee uplifts for all our services. Funding for the social care sector restricts our ability to increase fees to adequately reflect the cost of providing high quality care. Interest rale rises resulted in increased returns on our cash deposits. During the latter part of the year we received an unexpected legacy and held the annual fundraiser for the Alan Shearer Foundation which raised 200/0 more than the previous year. Fundraising Donated income from the Charity's 5UPPOrters both directly and via the parishes decreased slightly. Donations and legacie5 enable the Charity to support the most vulnerable members of society where oflen no other funding is available, such as our support of Joe's Place in Gateshead, a service supporting vulnerable people and our lunch
St Cuthbert's Care club in Sunderland which addresses social 1501alion in our older people communities, both of which offer a warm meal and a friendly chat. The Charity is most grateful la all of ils supporters. Fundraising is co-ordinated by the Charity's own employees, volunteers and patrons. The charity engaged an external fundraiser during the year, lo support and increase the income to the Alan Shearer Foundation to fund the activities at the Alan Shearer Activity Cenlre. Money is raised through voluntary contributions from the Charity's supporters, local businesses and organised events. The Alan Shearer Foundation raised £643,638 during the year (2023-. £491,423). The Directors express their most sincere thanks to patrons, Lainya and Alan Shearer, and family, for their unwavering support of the Charity. They would also like to acknowledge and thank patron, Mike Browne, for his donations and continued support of Alan's Foundation since its launch in 2012. The Charity is registered with the Fundraising Regulator and follows the Code of Fundraising Practice. The Charity does not participate ir7 any fundraising that niay be considered aggressive or intrusive and has received no complaints during the year in connection with its fundraising. Cashflow The charity's cash balance increased by £811,461 during the year lo £3,314,923, and includes the restricted reserves of £812,243. Resources expended Total expenditure this year increased by 12.10/0 10 £11,811,677 (2023= £10,534,815). This reflects increases in salaries to our employees to maintain the charity's commitment to remain a real Living Wage Employer and higher operating costs generally due lo specific inflationary factors affecting the social care sector. Employees and volunteers St Cuthbert's Care relies on the skills and dedication of its employees and volunteers to ensure that care services are person-cenlred and delivered with dignity and compassion. During the year, the Charity had an average of 293 {2023.' 2681 full and part-time employees delivering care and support. Volunteers, through their time and enthusiasm, add value to the Charity's services, enriching the lives of the Charity's beneficiaries. During the year volunteers donated over 6,000 hours of their lime to support the charity's activities and beneficiaries. We continue to encourage volunteering throughout the charity. The dedication and commitment of our care teams to the charity's beneficiaries ensures they continue lo receive the best possible care. The training and development of employees not only helps to achieve this for the people we support but also, in accordance with the Charity's Purpose, seeks lo enable our employees to develop to their personal potential. We recognise the demands on our teams of working in the social care sector and of life generally and trained 17 employees to aGI as mental health first aiders lo support their colleagues when in need and additionally offer a free confidential counselling service available to all our employees. These actions evidence the Charity's commitment to its employees and very much reflect the Charity's culture in valuing and respecting every individual. The Charity's recruitment policies reflect our commitment lo equal opportunities in employment. The Charity lakes all reasonable steps to employ. train and promote employees based on their values, abilities and qLJalifications without regard lo age, disability, gender reassignment, marriage or civil partnership, pregnancy and malernily, race (including colour, nationality and ethnic or national origin), religion or belief or sexual orientation. The Charity is also an approved user of the Posilive aboutDisabled People symbol, has achieved the Better Health at Work accreditation and was awarded the "North of Tyne Good Work Pledge" The Charity remains commitled lo maintaining ils status as an accredited real Living Wage Employer although this is becoming more of a challenge as cost increases continue lo exceed fee increases.
St Cuthbert's Care The Charity's gender pay gap report shows that the Charity's workforce is predomin8ntly female - a profile which reflects the historical wider nature of the social care sector. All employees are paid the same rale for the job grade regardless of gender. All new employees and volunteers undertake a thorough programme of induction training. This marks the beginning of a career-long learning programme at St Cuthbert's Gare. The employee handbook, together with staff association meetings, inlranel, team meetings and regular briefings help lo keep employees informed of the Charity's initiatives and performance. Plans for future periods The Directors consider the most appropriate way forward for the Charity is lo deliver upon its Five-year Plan for 2025-2030, an outline ofwhich is noted below. The Chief Executive, supported by the senior management team, will focus upon the implementation of this plan which will generate new income and will Continue to keep the Charity's employees and beneficiaries at the heart of ils work. That every service delivers a person-cenlred approach lo support, ensuring that outcomes are specific for the individual. Progress will be measured by internal reviews by the senior team and externally by regulatory ralings. Prioritise employee personal and professional development lo support each individual lo thrive and reach their personal potential. with the aim of enhancing the quality of care and support, improve employee retention through internal development opportunities and support succession planning at all levels. Progress is measured by surveys, internal promotions, and employee turnover rates. Increase engagement and communication with all stakeholders (people we support. employees & volunteers, parishes, schools and donors) to improve awareness of the charity's work. Performance measured by survey, employee turnover, compliments & complaints, donations and network of stakeholders. A commitment to sustainable practices across all the charity's services in order to reduce the charity's impact on the environment. Measured by external assessment. That all revenue generating services generate a surplus. The charity achieves a surplus of 5 % lo ensure the charity remains financially viable, is able lo invest in its existin9 services and has the resources lo develop new services lo meet any un-met demand. Investment in children's residential services including offering a leaving care service to support young people transitioning from our 2417 residential care to independent living. Expansion of Fostering North Easl, recruiting additional carers lo improve diversity. Develop and implement an improvement plan to ensure that care services for older people are independently financially viable. Produce a long-term strategic plan for the Holy Cross sile. Seek opportunities to deliver community I charitable services to embed the charity in the community il serves. Principal risks and uncertaintles The Charity's core work is in frontline social care provision, and as noted earlier in this report, risk management is embedded in every aspect of the Charity's activities. The Directors have considered the Charity's risks and seek lo rniligate them as far as is practical. The Directors consider the continued 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 high occupancy levels are maintained lo ensure regular cash flows. In turn, this enables the Charity lo re-invest in ils services. Whilst the increased occupancies in both our nursing homes are encouraging, further itnprovement is required and our forecasts and cashflow allow for a gradual improvement in OGGupancy levels throughout the next year.
St Cuthbert's Care 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 fee negotiations for every service. In addition, being a real Living Wage Employer enables the Charity lo attract high calibre and committed employees, offering stability in a sector where recruilmenl is particularly difficult. Together, these aGlions, supported by a strong culture of transparency and prudent stewardship, have allowed the Charity lo manage this seclor-wide issue of underfunding. The charity's forecasts for the coming year show a small operating surplus for 2024125. The Charity's cash reserves remain suff1cienl that should the forecasts not be achieved the Charity will retnain able lo pay its debts as they fall due beyond 12 months from signing this report. The Charity's work is the provision of essential social care services commissioned by local authorities and there remains strong demand for the Charity's services. The Charity's excellent reputation with commissioning authorities adds further comfort. The Directors continue to expect this and future financial years lo be challenging due to the under-funding of services bul 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 tUre developments can be found on the Charity's website: hll s.'Ilslculhbertscare.or 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. It is governed by Articles of Association which were last amended on 25 June 2024. Its objects are to carry out all forms of social care. Governance and internal control The Articles of Association allow for up to 12 directors to be appointed at any one time. The Directors are also trustees. The Board of Directors meets quarterly and has appointed a Chief Executive to manage the day-to-day aclivilies. 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 Cuthbert'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 Compliance, meets monthly to assess all risks to the Charity, both potential and actual, and implements appropriate conlrols. The Remuneration sub-committee benchmarks and reviews salaries and benefits across the Charity. The Nominations sub-committee considers suitable applicants to 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 to ensure and maintain a balance of skills and experience relevant to the work and business needs of the Charity. Key management personnel Chief Executive Director of Care Director of Children's Services Director of Compliance Financial Controller HR Lead Nic Gilbert Amanda Head Jody Scoll Gill Ennis Julie Nichol Denise Hall
St Cuthbert's Care Directors The directors of the company during the year and up to the date of signing are listed on page one. The Charity inducls every director upon appointment and provides training days. These are led by the Chief Executive and typically, include refresher training on trustees and directors, legal duties and responsibilities. Visits lo the Charity's services enable the Directors to meet the Charity's beneficiaries and employees. This maximises informed decision making. Investment policy Under the Articles of AssoGialion, the Charity has the power to make any investment which the Directors see fil. Currently, and throughout the year, funds have been invested in short term cash deposits only. The Directors 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 lo maintain, appropriate insurance for the Directors in respect of liabilities that may arise against them personally in connection with their duties as directors of the company and as trustees. Pay policy for senior employees The pay of senior employees is reviewed annually by the Directors. Part of this process includes the benchmarking of local market rates in similar organisations. Reserves policy The Directors consider that the Charity's reserves should be sufficient to allow St Cuthbert's Care the flexibility to continue lo operate and develop in accordance with the Charity's Statement of Purpose and Articles of Association. The current reserves policy stales that general funds should reflect one month's budgeted expenditure with a maximum margin of 100/0 which would equate to £1.1 m. The current level of reserves exceeds this. The Directors are in the process of reviewing the reserves policy following the publication of updated guidance on reserves by the Charities Commission. In addition there is one designated fund which is maintained by the Charity and details can be found in note 18 in the financial slalemenls. Statement of directors, responsibilities The Directors (who are also Trustees of Sl Cuthbert'5 Care for the purposes of charity law) are responsible for preparing the Directors, Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the financial slalements in accordance with United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and applicable law (United Kingdom Generally Accepted Accounting Practice). Under cornpany law, the Directors musl not approve the financial statements unless they are satisfied that they give a true and fair view of the stale 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 Directors are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities, SORP,. make judgements and estimates that are reasonable and prudent-,
St Cuthbert's Care state 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 stalemenls on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Directors are responsible for keeping proper 8cGounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for 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 financial statements may differ from legislation in other jurisdictions. Disclosure of information to auditors In so far as the Directors are aware at the time of approving this report.. there is no relevanl audit information of which the Company's auditors are unaware, and each director has taken all the steps that helshe ought lo 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 Following a tendering exercise CLA Evelyn Partners Limited were appointed auditors afler the financial year end. Pricewalerhousecoopers LLP resigned at the Board meeting in April 2024. The auditors, CLA Evelyn Partners Limited. have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed al the Annual General Meeting. On behalf of the Board oran hair 23 October 2024
St Cuthbert's Care Independent auditors, report to the members of St Cuthbert's Care Opinion We have audited the financial statements of St Cuthbert's Care (the 'charitable company'l for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes lo the financial statements, including a summary of 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 financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 March 2024, and of ils incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Internation21 Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo 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 slalements, we have concluded that the trustees, use of the going concern basis of 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 lo events or conditions that, individually or collectively, may cast significant doubt on the group's or parent charitable company's ability to continue as a going Concern for a period of at least twelve months from when the financial statements are aulhorise(J for issue. Our responsibilitie5 and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The Iruslees are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion Ihereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial slalemenls or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether there is a material misstatement in the financial statements or a material misstatement of the other
St Cuthbert's Care Independent auditors, report to the members of St Cuthbert's Care (continued) information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report lo you if, in our opinion= adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the trustees were not entitled to prepare the financial statements in accordance with the srnall companies, regime and take advantage of the small companies, exemptions in preparing the directors, report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully in the Statement of Trustees Responsibilities set out on page 21, the Iruslees (who are also Ihe 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 lo enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability lo continue as a going concern. disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company or to cease operations, or have no realistic alternative bul lo do so. Auditor's 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 mi5slatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS {UKI will always detect a material misstatement when it exists. Misslalements 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 10
St Cuthbert's Care Independent auditors, report to the members of St Cuthbert's Care (continued) Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl material misstalemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. We obtained an understanding of the legal and regulatory framework applicable lo both the charitable company itself and the industry in which il operates. We identified areas of laws and regulations that could reasonably be expected lo have a material effect on the financi81 staternenls from our sector experience and through discussion with the directors and other management. The most significant were identified as the Charities Act 2011, the Companies Act 2006, UK GAAP (FRS102) and relevant lax legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included.. making enquires of Iruslees and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud., obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations., reviewing the minutes of meetings of those charged with governance., assessing the risk of management override including identifying and testing journal entries,. confirmation received directly from the banks lo verify the balance at 31 March 2024- and Our audit did not identify any key audit matters relating lo the detection of irregularities including fraud. However. despite the audit being planned and conducted in accordance with ISAS (UK) Ihere remains an unavoidable risk that material misstatements in the financial statemenls may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. A further description of our responsibilities for the audit of the financial slalemenls is located on the Financial Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Cornpanies Act 2006. Our audit work has been undertaken so that we might stale lo the charitable company's members those matters we are required to state lo them in an auditor's report and for no other purpose. To the fullest exlenl permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Craig Henderson (Senior Statutory Auditor) For and on behalf of CLA Evelyn Partners Limited Statutory Auditors l8 OcEpknJ 1f)14 17 Queens Lane Newcastle upon Tyne, NE1 1 RN
St Cuthbert's Care Statement of financial activities (incorporating an Income and Expenditure Account) for the year ended 31 March 2024 Unrestricted funds Restricted funds 2024 Total 2023 Tota5 Note Income InGome from charitable activities Care for children 2,604,639 2,604,639 2,418,702 Care for people with disabilities 3,103,823 3,103,823 2,655,880 Care for older people 4,879,191 4,879,191 3,890,065 Grants receivable 16,671 Fostering & social work 941,564 941,564 929,096 Income from donations. legacies and other trading activity Donations 119.874 124,289 244,163 252,890 Legacies Other trading activities Investment income 128,521 100,000 228,521 11,g03 35.647 400,779 436,426 355,065 60,747 18,570 79,317 18,763 Total income 11,874,006 643,638 12,517,644 10,549.035 Expenditure Expenditure on charitable activities 11,318,849 336.664 11,655,513 10,409.674 Expenditure on raising funds Donations and legacies Other trading activities 5,670 8,621 5,670 5,2g1 141,873 150,494 119,850 Total expenditure 11,333,140 478,537 11,811,677 10,534,815 Net income for the year 540,866 165,101 705,967 14,220 All operations are continuing. All gains and losses in the year are included in the Statement of Financial Activities.
St Cuthbert's Care Reconciliation of funds for the year ended 31 March 2024 Unrestricted Restricted funds funds Total 2024 Total 2023 Fund balances al 1 April 2023 6.428,746 817,142 7,245,888 7,231.668 Nel income for the year 540,866 165.101 705,967 14,220 Transfer 170,000 {170,000) Fund balances at 31 March 2024 7,139,612 812,243 7,951,855 7,245,888
St Cuthbert's Care Balance sheet as at 31 March 2024 Company registration number: 1645917 Note 2024 2023 Fixed assets Tangible assets 5.134,766 4,942.051 Total fixed assets 5,134,766 4,942,051 Current assets Debtors 10 671,083 829,743 Cash at bank and in hand 3,314,923 2,503,462 Total current assets 3,986,006 3.333,205 Creditors.. amounts falling due within one year (890,8271 (716,045) Net current assets 3,095,179 2,617,160 Total assets less current liabilities 8,229,945 7,559,211 Creditors.. amounts falling due after more than one year {225,000) (250,0001 Provisions for liabilities and charges Net assets 14 (53,090) 163,323) 7,951,855 7,245.888 The funds of the Charity Unrestricted funds General funds 18 2,004,846 800,000 Designated funds.. Capital assets fund 18 5,134,766 5,628.746 7,139,612 6,428,746 Restricted funds 812,243 817,142 Total funds 18 7,951,855 7.245,888 The financial statements on pages 12 to 28 were approved by the Board of Directors and were signed on its behalf by= l Moran Chair 23 October 2024
St Cuthbert's Care Statement of Cash Flows for the year ended 31 March 2024 Note 2024 2023 Cash flows from operating activities Nel cash provided by operating activities 1,158,319 23,799 Cash flows from investing activities Interest received 79,317 18,763 Purchase of tangible fixed assets 1426,175) (153.310) Net Gash used in investing activities (346,858} 1134,547) Cash flows from financing activities Net cash used in financing activities Change in cash and cash equivalents in the reporting period 811,461 (110,748) Cash and cash equivalents at the beginning of the re ortin eriod 2,503,462 2.614.210 Cash and cash equivalents at the end of the reporting period 3,314,923 2,503,462
St Cuthbert's Care Accounting policies The principal accounling policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows.. Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021- (Charities SORP FRS 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Companies Act 2006. Going concern In the year ended 31 March 2024 the Gharity recorded a surplus for the year of £705,967 and had a year end cash position of £3,314,923 with no borrowings. The charity's work is the provision of essential care setvices Gommissioned by local authorities and there remains a strong interest and demand for the charity's services. The occupancy level in our two nursing homes have increased for the second year running and are now at acceptable pre-Covid19 pandemic levels but with further capacity to improve. The charity's excellent reputation with commissioning authorities for all of ils services adds further comfort for 2024125 in filling vacancies as they arise. The Charity's forecasts for the coming year factor in the higher salaries paid to front line carers which are necessary to reward and relain these highly skilled employees lo ensure that exceptional levels of care delivery are maintained. The charity has no borrowings but does benefit from higher interest rates for the funds on short term deposit. Negotiations are still ongoing wilh local authorities but it is clear that central and local Government funding constraints are restricting our ability to achieve fee increases which would cover full cost recovery. However, the Charity's cash reserves give comfort that this is manageable in the short term, including at least the next 12 months. The Directors have reviewed and assessed the financial performance for the first half of 202412025, the results are slightly below expectation but within acceptable limits. A cash flow forecast for the period to November 2025 has been prepared, which considers realistic downside cash flow sensitivities and this together with continued demand for the Charity's care services gives the Directors confidence in continuing to adopt the going concern basis of accounting.
St Cuthbert's Care Accounting policies (continued) Incoming resources Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met. il is probable that the incorne will be received and the amount can be measured reliably. For legacies, entitlement is the earlier of the date on which either.. the Charity is aware that probate has been granted, the eslale has been finalised and notification has been made by the executors(sl to 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 inlenlion 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 (FRS 102), volunteer lime is not recognised,. 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 to the category. Support costs include expenditure which cannot be direclly allribuled to particular headings and have therefore been allocated lo activities on the basis of employee costs. Governance costs represent the legal and professional fees of running the Charity and costs associated with preparing and holding Board meetings and are included within support costs. Resources expended include attributable VAT which cannot be recovered. Tangible fixed assets Fixed assets costing more than £7,500 are c8Pltalised and included at purchase cost, together with any incidental costs of acquisition. Depreciation is calculated so as to write off the cost of tangible fixed assets, less their estimated residual values, on a straight-line basis over their expected lives. The principal annual rates used for this purpose are: Freehold land Furniture, equipment and plant Motor vehicles As5els in the course of construction 5-33 20 Freehold and long leasehold buildings are depreciated over 50 years or. if shorter, over the period of the lease.
St Cuthbert's Care Accounting policies (continued) Fixed asset investments Fixed asset investments are slated al the lower of cost or net realisable value. Operating leases Leases that do not transfer all the risks and rewards of ownership are classtfied as operating leases. Rentals payable are charged on straight line basis over the 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 at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date 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 that will probably result in the transfer of funds to a third party and the amount due to sellle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised al their selllement amount after allowing for any trade discount due. Financial Instruments The Charity only has financial assets and financial liabilities of a kind that qualify as basic fsnancial instruments. Basic financial inslrumenls are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Grants receivable Grants, including those for the purchase of fixed assets, are recognised in full when the Charity has entitlement lo the funds, any performance conditions attached to the grants have been met, it 15 probable that the income will be received and the amount can be measured reliably and is not deferred. Fund accounting General funds are unrestricted funds which are available for use at 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 unrestricted funds th2t have been set aside by the Directors for particular purposes. The aim and use of each designated fund is set out in note 18 to the financial statements. Restricted funds are funds which are lo be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes.
St Cuthbert's Care Accounting policies (continued) Pension costs The Charity makes available a defined contribution pension scheme to employees lo which il conlribules. The scheme originally set up as a stakeholder pension scheme meets the auton7atic enrolment rLJles. There is a historical unfunded pension liability and adjustments lo this pension liability, referred lo in note 14, 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. Critical accounting estimates and areas of judgement Preparation of the financial statements requires management to 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 to be reasonable under the circumstances. The directors consider there to be no significant estimates or judgements made during the year which had a material impact on the results reported in the financial slatemenls.
St Cuthbert's Care Notes to the financial statements for the year ended 31 March 2024 1 Expenditure on charitable activities Direct costs Support costs 2024 2023 Care for people with disabilities 2,965,803 294,507 3,260,310 2,822,089 Care for older people Care for children, fostering & social work 5,068,645 480,363 5,549,008 4,780,257 2,641,970 204,225 2,846,195 2,807,328 10,764,418 979,095 11,655,513 10,409,674 2 Expenditure on raising funds Direct costs Support costs 2024 2023 Voluntary income, donations & legacies Activities for gener8ting funds 5,066 604 5,670 5,291 146,872 3,622 150,494 119,850 151,938 4,226 156,164 125,141 3 Support costs Support costs, including governance costs of £29,371 (2023.. £42.3591, not directly attributable to projects have been allocated on the basis of employee costs 2nd are analysed below= Employee costs Depreciation Other costs 2024 2023 Charitable activities 620,306 22,274 336.515 979,095 861.041 Raising funds 2.677 96 1.452 4,225 1,522 622,983 22,370 337,967 983,320 862.563 20
St Cuthbert's Care 4 Employee costs 2024 2023 Employee costs: Wages and salaries 7,919,604 7,261,645 Social security costs 629,386 602,479 Pension costs 149,816 144,177 8,698,806 8,008.301 The pension costs were charged through the Statement of Financial Activities in respect of the defined contribution scheme operated for employees and allocated between activities both reslricled and unrestricted funds on the basis of employee costs. The company maintains insurance for ils employees in respect of their duties as employees as part of ils overall insurance policy. Three employees received emoluments above £60,000 {2023- two). Two of the employees are in the band £60,000-£70,000 {2023'. one) and one employee is in the band £80,000- £90,000 {2023: one). The key management personnel of the Charity comprise the Chief Executive, the Director of Care, the Director of Children's Services. the Director of Compliance, the Financial Conlroller and the HR Lead. The total employee benefits of the key management personnel of the Charity were £403,68012023.- £424,490). The average monthly number of employees, analysed by function was: 2024 2024 Full-Time Equivalent 2023 2023 Full-Time Equivalent Number Number Charitable activities 292 232 266 215 Expenditure on raising funds 293 233 268 216
St Cuthbert's Care 5 Directors, emoluments 2024 2023 Aggregate emolumenls and fees 89,250 155,925 Emoluments are paid lo one director (2023.. two), the Chief Executive for services as 8 director and not as a trustee of the Charity. Provision for payments lo the Chief Executive and the Finance Director are made in the company's Articles of Association. InGluded in the above are conlributions made lo the Charity's pension scheme in respect of this director of £4,250 {2023= £7,425). The Director received no reimbursement of travel expenses in the year12023'. £Nill. Other than as noted above, no director was entitled to nor received any remuneration for their seTvices (2023.. £Nill or were accruing benefits under the pension schemes12023'. £Nill or received reimbursement of their expenses12023.' £Nil). 6 Net income for the year Net income for the year is slated after charging.. 2024 2023 Depreciation charge for the year Auditors, remuneration for audit services 233,460 212,856 23,952 36,960 Operating lease rentals for land and buildings 11,188 7 Taxation The Company is a charity established under the Charities Act 2011. 11 is therefore exempt from taxation 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 extent that such income or gains are applied lo charitable purposes only.
St Cuthbert's Care 8 Tangible assets Freehold Furniture equipment and plant long leasehold buildings Assets in the course of construction Motor vehicles Total Cost At 1 April 2023 6,296,922 2,621,749 73,656 50,070 9,042,397 Additions 85,790 301,209 39,176 426,175 Transfers 50,070 {50,070) At 31 March 2024 6,432,782 2,922,958 73,656 39,176 9,468,572 Accumulated Depreciation At 1 April 2023 2,178,559 1,848,131 73,656 4,100.346 Charge for the year 101,163 132,297 233,460 Eliminated in respect of dis osals At 31 March 2024 2,279,722 1,980,428 73,656 4,333,806 Net book value At 31 March 2024 4,153,060 942,530 39,176 5,134,766 At 31 March 2023 4,118,363 773,618 50,070 4,942,051 9 Capital commitments Capital expenditure aulhorised and contracted for but not provided for in the accounts amounts to £66,152 (2023.. £237,401). This is for costs relating lo a new apartment at one of our care homes. This work will be completed during the 2024-25 financial year. 10 Debtors 2024 2023 Trade debtors 385,093 466,544 Other debtors 2,278 4,024 Prepayments and aGcrued income 283,712 359,175 671,083 829,743
St Cuthbert's Care 11 Creditors: amounts falling due within one year 2024 2023 Trade creditors 229,334 253,348 Other creditors 108,676 11,569 Taxation and social security Accruals and deferred income 174,419 151,389 378,398 299,739 890,827 716,045 12 Creditors: amounts falling due after more than one year 2024 2023 Deferred income 225,000 250,000 225,000 250,000 The Directors expect the deferred income to be released to the Slalemenl of Financial Activities over the next 10 years. It relates lo the prepayment of rental income for office space by the Roman Catholic Diocese of Hexham & Newcastle and is being released at a rate of £25,000 per annum12023'. £25,000). 13 Reconciliation of deferred income 2024 2023 At 1 April 275,000 300,000 Released during the year (25,000) 125,000) At 31 March 250,000 275,000 There is £25,000 of this deferred income balance included within creditors falling due within one year. 24
St Cuthbert's Care 14 Provisions for liabilities and charges Analysis of amounts charged through the statement of financial activities Pension provision At 1 April 2023 63,323 Established during the year Ulili5ed during the year (10,233) At 31 March 2024 53,090 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 to be met over the next 7 years. The provision is anticipated lo fall due as follows.. 2024 2023 In less than one year 9,576 10.368 Between one and two years 9,864 10,679 Between two and five years In more than five years 20,117 21,778 13,533 20,498 53,090 63,323 15 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 to £1 each. 25
St Cuthbert's Care 16 Reconciliation of net incoming resources to net cash provided by operating activities 2024 2023 Nel incoming resources 705,967 14,220 Depreciation on tangible fixed assets Loss on disposal of fixed assets 233,460 212,856 Decrease in deferred income 125,0001 (10,2331 (25,000} Decrease in provisions {9,8861 {InGreasel I decrease in debtors 158,660 (213,9331 Increase l {decreasel in creditors 174,782 64.305 Interest received (79,317) (18,763) Net cash provided by operating activities 1,158,319 23,799 17Analysis of net debt 1 April 2023 31 March 2024 Cash flow Cash at bank and in hand 2,503,462 811,461 3,314,923 Net funds 2.503,462 811,461 3,314,923 26
St Cuthbert's Care 18 Statement of funds Al 1 April 2023 At 31 March 2024 Income Expenditure Transfer5 General funds 800,000 11,874.006 111,333,140} 663,980 2,004,846 Designated funds Capital assets fund 5,628,746 (493,980) 5,134,766 Total unrestricted funds 6,428,746 11,874.006 (11,333,140) 170,000 7,139,612 Restricted funds: Alan Shearer Foundation 817,142 643,638 1478,537) 1170,000) {478,5371 {170,000) 7,245.888 12,517,644 (11,811,677) 812,243 Tolal restricted funds 817,142 643.638 812,243 Total funds 7,951.855 At 1 April 2022 At 31 March 2023 Income Expenditure Transfers General funds 800,000 10,051,982 {10,172.7471 120,765 800,000 Designated funds Capital assets fund 5,749,511 1120,765) 5,628,746 Total unrestricted funds 6,549,511 10,051,982 (10,172.747} 6,428,746 Restricted funds: Alan Shearer Foundation 682,157 497,053 (362,068} 817,142 Total restricted funds 682,157 4g7,053 (362,0681 817,142 Total funds 7.231,668 10,549,035 (10,534.8151 7,245,888 Purpose of Funds The General fund represents the free funds of the Charity which are not designated for particular purposes. The Capital assets fund (previously referred to as the Charity assets fund) represents the book value of land, buildings and fixtures in use by the charity for the provision of services in furtherance of the Charity's objects. These funds are therefore unavailable for other use. The charity has one restricted fund. The Alan Shearer Foundation which represents those funds raised by the Foundation which have not yet been spent on charitable activities. The Directors are in the process of reviewing the reserves policy following the publication of updated guidance on reserves by the Ch2rities Commission. 27
St Cuthbert's Care 18 Statement of funds (continued) Analysis of nel assets between funds {currenl year) Restricted Designated funds funds General funds Total Fund balances al 31 March 2024 are represented by.. Fixed assets 5.134,766 5,134,766 Current assets 812,243 3,173,763 3,986,006 Current liabilities (890,827) (890,827) {278,0901 1278,090) Long term liabilities and provisions Net assets at 31 March 2024 812,243 5,134,766 2,004,846 7,951,855 Analysis of nel assets between funds (prior year) Restricted Designated funds funds General 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 {716,045) 1716,045) (36,000) 1313,323) Long term liabilities and provisions 1277.323} Net assets al 31 March 2023 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 charity. The Charity invoiced £90.761 {2023.' £177.593) lo the Roman Catliolic Diocese of Hexham and Newcastle in respect of shared costs associated with the provision of offices for both parties and care home fees for retired priests. As al 31 March 2024 £10,697 (2023.. £12.211) remained outstanding and is included in debtors. 28