St Cuthbert's Care (A company limited by guarantee) Annual Report for the year ended 31 March 2025 R•glstored Number 1645917 Reglstered Charlty Number 512912
St Cuthbert's Care Annual Report for the year ended 31 March 2025 Contents Directors and Advlsors. Directors, report (including the strategic report) . Independent auditors, report to the members of St Cuthbert's Care..... ....... ..... ..... . ... io Statement of financlal activities (incorporaling an Income and Expenditure Account)..........................14 Reconciliation of funds ....................................................................................................................................15 Balance sheel as at 31 March 2025..............................................................................................................16 Statement of Cash Flows................................................................................................................................17 Accounting policies........................................................................................................ 18 Notes lo the financial statements......................................................... ............................. .... ............... .22
st Cuthbert's Care Directors and Advisors for the year ended 31 March 2025 The dlrectors of thè company who were in office during the year and up to the date of signing the flnanclal statements were: Dlrectors Right Rev. 8ishop S Wrighl Mr M Dickson MBE Mr N Gilbert Mrs A Johnson Dr K Mannix Mr P Moran Mrs K Urwin (Chief Executive) (Chair) Company secretary and reglstered offlce Mrs J Nichol St Cuthbert's House West Road Newcastle upon Tyne NE15 7PY Independent Audltors S&W Partners Audit Limited (formerly CLA Evelyn Partners Limited) 17 Queens Lane Newcastle upon Tyne NE11RN Sollcltor8 Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NE14BF Bankers National Westminster Bank PLC 16 Northumberland Street Newcastle upon Tyne NE17EL
St Cuthbert's Care Directors, report for the year ended 31 March 2025 The Directors present their strategic report for the year ended 31 March 2025. Objectives and activlties 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 their personal potential The Charity's Vision reads: To achieve excellencg in all Ihal we do The Charity Values: This year. we refreshed our core values in collaboration with our employees - ensuring they are not only meaningful but fully embedded in everyihing we do as a charity: Cherishing Lrfe We recognise the indlvlduality of each person by upholding the principles of dignity, equality and diversity. Achieve We enable people lo achieve their personal potential by fostering a culture of empowerlng and motivation, fulfilling our purpose. Respect We show kindness to everyone and through listening and understanding allow people to have a clear voice. Empathy We employ 8 person-centred approach that enables us to provide care and support for Individuals by recognising their unique circumstances. perspective and needs Responslbility We encourage everyone, regardless of Iheir role, to take responsibility for ensuring the safely and wellbeing of our residents, safeguarding Ihem from any potential harm or abuse. 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 two nursing and residential care homes for older adults. In addition, the Charity fundraises to provide services to support the mosl impoverished and disadvantaged people across the North East. The Charity's strategic Five-year Plan for the period 2025-2030, was approved by the Directors in 2024. The Directors monitor progress and review the plan each year. The Directors have reviewed the Charity's Statement of Purp05e, together with its Vision and Aims and Objectives and are satisfied that the Charity continues to meet the requirements of Ihe Charity Commission's guidance on public benefit.
St Cuthbert's Care Achlevements and performance The Charity's activities include a broad range of complex care services across the North East, regulated by Ofsted for children's services and the Care Qualily Commission {CQC) for adult services. The regulators undertake planned and unannounced inspections. Three of the Charity's services were inspected during the year, one improving to "Outstanding" and two remaining as °Good°. 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 cenlres for people with disabilities. the Hub@Parkhead and the Alan Shearer Centre. are nol regulated areas of work. All the Charity's services reflect Ihe high standards and quality care that are delivered by the Charity's care teams. The Charity's Vision is "to achieve excellence in all that it does" and there 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 at hll s-1llinklr.eelslculhberlscare. The Charity's significant achievements this year include.. st Catherine's Nursing Home's successful Gold Standards Framework accreditation has enabled the home to make links with the Newcastle hospital's palliative care discharge team to increase the home's source of referrals and to ensure that outstanding end of life care is provided. Desplle the significant increases in the minimum wage and the employer national insurance contributions we remain an accredited Living Wage Employer. Thls is one way the Charity demonslrales how it values ils employees and rewards them for their continued dedication and care for Ihe people we support. In addition the Charity aims to provide rewarding careers by developing people to their personal potential. During the year it has promoted 10 employees and 27 employees completed their Care CertificatelLeader In Adult Care Apprenticeship training. Suslainabilily and reduclng the Impact on the environment is one of the Charity's objectives and during the year the Charily cornmenced the Green Mark sustainability accreditation process with half the Charity, locations achieving Level 1 accreditation with the remainder expected lo be accredited during Summer 2025. The Charity's environmental team are assessing and discussing sustainable practices to reduce, reuse & recycle In preparalion of achieving Level 2 accreditation. As part of this objective the Charity is replacing its standard energy supply contracts with supplies from renewable Sources and during the year contracted for 19 % of its annual electricity spend from renewable sources with'the remaining electricity contracts due for renewal in April 2026. Energy usage is also being reduced by Installing energy efficient LED lighting throughout the Charity. Last year we Installed circadian lighting in our dementia care areas lo mimic natural daylight patterns, helping to improve sleep. mood and daytime alertness. while also reducing the risk of falls for those residents living wilh Dementia. This year Demenlia Lead, Dr Ruth Cromarty, partnered with the manufacturer to conduct research inlo a new product which uses acoustics lo alert care staff lo potential care needs of residenls which provides both an early alert to potential issues and reduces residents being unnecessarily disturbed. As part of our commitment lo inclusive and person-centred support, we have developed the White Sensory Room al the Alan Shearer Centre into a dedicated quiet space for our neurodiverse members. This calm, low-stimulation environment has been carefully designed to provide a safe relreal for Individuals who may become overwhelmed by sensory input. The space enhances our existing facilities and reflects our ongoing efforts to adapt and evolve in line with the needs of those we support. Our lunch club at Holy Cross continues to provide a vital social lifeline for older. sometimes isolated, individuals in the local community. Over Ihe past year, we have served more than 850 subsidised meals, offering not only nutritional support but also meaningful opportunities for connection and companionship. The positive response has strengthened our commitment to supporting older people and has directly influenced
st Cuthbert's Care the expansion ofour provision for older people. We have recently developed an additional Independent Livlng Flat at Holy Cross, which is now occupied by a long-standing member of the lunch club. This seamless transition from community support to independent living demonstrates the value of our integrated approach and our dedication to providing flexible, compassionate care that evolves with the needs of those we serve. Financlal review The Slalemenl of Financial Aclivilies for the year is set out on page 14 of the financial statemenls. A summary of the financial results and the work of the Charity is set out below. The Charity's income increased by 6.10/0 to £13,276,781 (2024: £12,517.644). The majorily of this increase reflecting operating at near full occupancy at a service for adults with disabilities which opened during 2023124 and fee increases at both nursing homes. A lower average occupancy resulted in a 14% drop Sn income from the care of children, but the Charity's senior management are confident Ihat Ihe vacancies will be short-term. Annual fee uplifts from local authority commissioners continue lo be below the level of National Living Wage and general inflation and employers, national insurance increase which is not sustainable in the longer term. Fundralslng The Charity is deeply grateful for the generoslty of its supporters. Donated Income Includlng legacles. received both directly and via parish collections, increased by 19 % during the year. Donations and legacies continue to be vital in enabling the Charily lo support some of Ihe most vulnerable members of society - partlcularly in areas where no statutory funding is available. This includes our support ofJoe's Place in Gateshead and the lunch Club in Sunderland, bolh of which offer a warm meal and a friendly space for those experiencing hardship or social isolalion. We are very Ihankful for a generous legacy received in the year from former Chief Executive, Auslin Donohoe, whose vision and dedication played a pivotal role in shaping the Charity's direction and success. Austin led the development of several key services, including the Alan Shearer Centre, Auton Children's Services, St Catherine's Nursing Home and th& acquisition of Holy Cross Care Home. HIS lasting impact on our vrfork and enduring commitment to those we support Is sincerely appreclated. Fundraising is coordinated by the Charity's own employees, volunteers and patrons. The Charity contracts wlth an external fundraiser to support income generation for the Alan Shearer Foundation. which funds the activities provided free of charge al the Alan Shearer Activity Cenlre. Income is raised through voluntary contributions from individuals, local businesses and organised events. The Alan Shearer Foundation raised £493.854 during the year (2024- £643,638), the decrease due to the liming of fundralsing balls and a £100,000 legacy donalion in the previous financial year. The Directors express Iheir most sincere thanks to patrons, Lalnya and Alan Shearer CBE, and family, for their unwavering support of Ihe Charity. They would also like lo acknowledge and thank patron, Mike Browne, for his donations and continued support of Alan's Foundation since its launch in 2012. The Charity is regislered with the Fundraising Regulalor and follows the Code of Fundraising Practice. The Charity does not participate in any fundraising that may be considered aggressive or intrusive and has received no complaints during the year in conneclion with its fundraising. Cashflow The Charity's cash balance increased by £244,526 during the year to £3,559,450 and includes the restrlcted reserves of £593,858. Resources expended Total expenditure increased by 10.9Q/o to £13,098.960 (2024.. £11.811,677). The majority of this increase being in higher salaries to the Charity's employees wilh the conlinued higher rate of inflation accounting for the balance.
St Cuthbert's Care Employees and volunteers Good care starts with good people and the Charity relies on the Compassionate care and professionalism of Its employees and volunteers to ensure that care services are person-cenlred and delivered with dignity and respect. The Charity had an average of 306 (2024: 293) full and part-time employees delivering care and support during the year. Volunteers, through their time and enthusiasm, add value to the Charity's services, enriching the lives of the Charity's beneficiaries. The Charity benefited from over 6,000 volunteer hours during the year and we welcome anyone who would Ilke to support the Charity by volunteering. The dedication and commitment of our care teams to the Charity's beneficiaries ensures they continue to 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 to 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. The Charity's menlal health flrst aiders are there to support their colleagues when in need and additionally offers 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 re-enforce our commitment to equal opportunilies In employmenl. The Charity's Values Based approach to recruitment ensures we employ, train and promote employees based on their values, abilities and qualifications without regard to age, disabilily. gender reassignmenl, marriage or civil partnershlp, pregnancy and malernily, race (including colour, n81ionality and ethnic or national origin), religion or belief, sex or sexual orientation. The Charity is also an approved user of the Positive about Disabled People symbol, has achieved the BetterHeallh at Workaccreditalion and was awarded the"North ofTyne Good Work Pledge" The Charlty remalns committed to maintainlng its status as an accredited real Living Wage Employer. The Charity's gender pay gap report shows that the Charity's workforce Is predominantly female a profile which reflects the social care sector as a whole. All employees are paid the same rate for the job grade regardless of gender. All new employees and volunteers undertake a thorough programme of induction trainlng. This marks the beginning of a career-long learning programme at St Cuthbert's Care. The employee handbook, together with staff association meetings, intranet, team meetings and regular briefings help to keep employees informed of the Charity's iniliatives and performance. Plans for future perlods The Directors consider the most appropriale way forward for Ihe Charity is to deliver upon its Flve-year Plan for 2025-2030, 8n oulline of which is noted below. The Chief Execulive, supported by the senior management team, continue lo focus upon the implementation of this plan which will generate new income and wlll continue to keep the Charity's employees and beneficiaries at the heart of its work whilst also being alert to new opportunities. That every service delivers a person-centred approach to support, ensuring that outcomes are specific for the individual. Progress will be measured by internal reviews by the senior team and externally by regulatory ratings. Prioritise employee personal and professional development to support each individual to thrive and reach their personal potenlial, with the aim ofenhancing the quality ofcare 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 & volunleers, 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.
St Cuthbert's Care A commitment lo sustainable practices across all the Charity's selNices in order to reduce the Charity's impact on the environment. Measured by external assessment. That all revenue generaling services generate a surplus. The Charity achieves a surplus of 5 % to ensure the Charity remains financially viable, is able to invest in its existing services and has the resources to develop new services to meet any un-mel 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 to improve diversity. Develop and implement an improvement plan to ensure thal care services for older people are Independently financially viable. Produce a long-term strategic plan for the Holy Cross site. Seek opporlunities to deliver communily I charitable services to embed the Charity In Ihe community it serves. Principal rlsks and uncertaintles The Charity's core work is in social care provision. and as noted earlier in this report, risk management is embedded in every aspect ofthe Charity's activities. The Directors have considered the Charity's risks and seek to mitigate them as far as is praclical. The Directors consider the under-funding of services by commissioning bodies that is prevaleni across the whole of the social care sector and the recrultment of skilled care workers to be the most significanl risks facing the Charily in the medium to long term. In addltlon, the Charity must operate with high occupancy levels due lo the high fixed costs of operating care services, Hlgh occupancy levels ensure regular cash flows which helps miligale the under-funding of care. Any surplus is re- invested in the Charity's services. The Charily's reputation for delivering high quality care helps ensure a steady flow of referrals from placlng authorities. The Charlty also undertakes annual fee negotiations for every service. The Directors consider these actions, along with a strong culture of transparency and prudent stewardship will enable the Charity to manage the seclor-wide challenges it faces. The Charity's forecast and budget for the coming year indicate an operaling deficit Is possible if higher occupancies are nol achieved andlor the current fee uplifts for 2025126 are nol increased. The Charity's cash reserves remain sufficient that should a deficit be incurred the Charity will remain able to pay ils 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 Ihe Charity's seplices. The Charity's excellent reputation with commissioning authorities adds further comfort. The Directors continue lo expect this and future financial years to be challenging due lo the potential under-funding of services but are confident that through effe¢live management. backed up by heallhy cash reserves, the Charity will be able to manage the challenges ahead. More details about the Charity's services. testimonials and information on fulure developments can be found on the Charity's website: htl s.'Ilslcuthberlscare.or .uk. 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.
st Cuthbert's 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 truslees, The Board of Directors meets quarterly and has appointed a Chief Executive to manage the day-to-day activities. The Chief Executive is a director. The Board is supported by three sub-commiltees: The Audit, Finance and Risk sub-commillee oversees the finances and managemenl 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 Compliance, meets monthly to 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 Nominatlons sub-commiilee considers sultable applicanls 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 lo ensure and maintain a balance of skills and experience relevant to the work and business needs of the Charity. Key management pèrsonnèl Chief Executive Director of Care & Deputy Chief Executive Director of Children's Services Director of Compliance Financial Controller HR Lead Nic Gilbert Amanda Head Jody Scoti Gill Ennis Julie Nichol Denise Hall Dlrectors 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 include refresher Iraining on trustees and directors, legal duties and responsibilities. Visits 10 the Charity's services enable the Directors to meet the Charity's beneficiarles and employees. These visits make for more informed decision making at the Charity's Board meetings. Investment policy Under the Articles of Association, the Charily has the power to make any investment which the Directors see fit. Currently, and throughout the year. funds have been invested in short term cash deposits only. The Directors consider this lo be the mosl appropriate course given the short lerm needs of the Charity. Insurance of directors The company had during Ihe year ended. and conlinues 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 pollcy for senlor 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.
St Cuthbert's Care Reserves pollcy The Directors require the Charity's general reserves to be sufficient to allow St Cuthbert's Care the flexibility to continue to operate and develop in accordance with the Charity's Statement of Purpose and Articles of Association. The Direclors belleve it prudent to hold general reserves of £2.3m, which Ihey consider is required lo meet the financial risks the Charity may face. a5 Identified in Ihe annual budgeting prsxess for potential downslde sensilivilies. As at 31 March 2025, the current level of the general reserves is £2.31 Om. The Directors review the policy on reserves on an annual basis as part of the annual budgeting process and monitor the level of reserves throughout the year. In addition there is one designated fund and one restricted fund maintained by the Charity. details of which can be found in note 18 in the financial statements. Statement of dlrectors, rèsponslbllltles The Directors (who are also Trustees of St Cuthbert's Care for Ihe purposes of charily law) are responsible for preparing the Directors, Report (including the Strategic Report) and the financlal 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 statements 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 company law. the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for Ihal period. In preparing these financial slatemenls, the Directors are required to.. select suilable accounling policies and then apply them consistently: observe the methods and principles In the Charities, SORP; make judgements and eslimales that are reasonable and prudent, state whether FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", subject to any material departures disclosed and explained in the financial stalements., and prepare the fiiiancial slatemenls 011 the goirig ¢uncern basis uiiless it is inapproprlate to presume Ihat the charitable company will continue in business. The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any lime the financial position of the Charily and to enable them to ensure that the financial stalements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of Ihe Charity and hence taking reasonable steps for the prevention and deteclion of fraud and other irregularilies. The Directors are responsible for the maintenance and integrity of the charitable company's websile and social media accounts. Legislation in the Uniled Kingdom governing the preparation and dissemination of financlal slatements may differ from legislation in other jurisdiclions. Disclosure of Information to audltors In so far as the Directors are aware at the time of approving this report: there is no relevant audit information of which the Company's auditors are unaware, and each 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 inforrnation and to establish that the Company's auditors are aware of that information.
St Cuthbert's Care Independent Auditors The auditors, S&W Partners Audit Limited. have indiG3ted their willingness to Gonlinue in office and a resolution concerning their reappointment will be proposed al IheAnnu31 Gener31 Meeting. On behalf of the Board oran Chair 23 July 2025
St Cuthbert's Care Independent auditors, report to the members of St Cuthbert's Care for the year ended 31 March 2025 OpSnlon We have audited the financial statements of St Cuthbert's Care (the 'charitable company,) for the year ended 31 March 2025 whlch comprise the Statement of Financial Activities (Incorporating an Income and Expenditure Account}, the Reconciliation of Funds, the Balance Sheet as at 31 March 2025, the Statement of Cash Flows and notes to the financial statements, including a summary ofsignificanl 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 Reporling Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statemenls: give a true and fair view of the state of the charitable company's affairs as at 31 March 2025, and of the company's income and expendilure, for Ihe year Ihen 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. Basls for opinlon We conducted our audit in accordance with International Standards on Audiling (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibililies for the audit of the financial statements section of Our report. We are independent of the charitable company in accordance wilh the ethical requirements that are relevant to our audit of the financial stalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requiremenls. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinlon. ConGluslons relatlng to golng concern In audiling the financial statements, we have concluded that the trustees, use of the going concern basls of accounting in the preparation of the financial statements is appropriate. Based on Ihe work we have pprformpd, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least e1ve months from when the financial slatements are aulhorised for issue. Our responslbililies and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Information The other information comprises Ihe informalion included in the Annual Report, other than the financial statements and our audilor's report thereon. The Truslees are responsible for the other information contained within the Annual Report. Our opinion on the financial stalemenls does not cover the other information and. excepl to the extent otherwise explicitly stated in our report, we do nol express any form of assurance conclusion thereon. Our responsibility is lo read the olher informalion and. in doing so, consider whether the other information is materially inconsistent wilh the financial statements or our knowledge obtained in the course of the audit orolherwise appears to be malerially misstated. Ifwe idenlify such material inconsistencies or apparent material misstatements. we are required to determine whelher this gives rise to a material misstalement in the financial statements themselves. If. based on the work we have performed, we Conclude that there is a material misstatement of this other informalion, we are required to report that facl. 10
St Cuthbert's Care We have nothing lo report in this regard. Independent auditors, report to the members of St Cuthbert's Care (continued) Opinions on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the informalion given in the Directors, Report. which includes the Slrategic Report, is prepared for the purpose of company law. for the financial year for which the financial statements are prepared is consistent with the financial slalements.. and the Directors, Report, which includes the Stralegic Report has been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the light of our knowledge and understanding of the charilable company and its environment obtained In the course of the audit. we have not identified material misstatements in the Directors, Report including the Strategic Report. We have nothing to report In respect of the following malters in relation to which the Companies Act 2006 requlres us to report lo you If, in our opinion: adequate and sufficient accountlng records have not been kepl by the charitable company, or returns adequate for our audll have not been received from branches not visited by us; or the charitable company's financial statements are not in agreement with the accounting records; 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 lo take advantage of the small companies, exemptions from the requlremenl to prepare a strategic report. Responslbllltles of trustees As explained more fully in the Directors, Responsibilities Statement set out on page 8, the Direclors{who are also trustees of Ihe charitable company for the purposes of charity law) are responsible for the preparalion of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial slalemenls that are free from material misslalemenl, whether due to fraud or error. In preparing the financial slatements. the trustees are responsible for assessing the charitable company's ablllty to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charitable company or lo cease operations, or have no realistic alternative but io do so. Audltor's responsibilities for the audit of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial slalements as a whole are free from material misstatement, whether due lo fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranlee that an audit conducted in accordance with ISAS (UK) will always detecl a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected lo infiuence the economic decisions of users taken on the basis of these financial statements
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 detect malerial misstatements in respect of Irregularities, including fraud. The exlenl lo which our procedures are capable of detecting Irregulariiies, including fraud, is detailed below. We obtained a general understanding of the charitable company's legal and regulatory framework through enquiry of management concerning Iheir understanding of relevant laws and regulations, the entity's policies and procedures regarding compliance, and how they identify, evaluate and account for litigalion claims. We also drew on our exisling understanding of the charilable company's induslry and regulations. We understand that Ihe company complies wilh the framework through: Engaging external legal professionals as required and making changes to internal procedures and controls as necessary. The directors, close involvement in the day-lo-day running of the business, meaning that any litigalion or claims would come to their attention directly. Monitoring of updates made by regulatory bodies. In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements. which are central to the charitable company's ability to conduct Its business, and where there is a risk Ihal failure to comply could result in material penalties. We identified the following laws and regulalions as being of significance In Ihe context of Ihe charilable company: The Companies Act 2006 and FRS 102 in respect of the preparation and presenlalion of the financlal slalements. The Charities Act 2011 and the Charities.. Slalement of Recommended Practice in respect of the preparation and presentalion of the financlal stalements. The Requirements of Ofsted and the Care Quality Commission. We performed Ihe following specific procedures to gain evidence about compliance with the significant laws and re9ulalions identified above: Obtaining an understanding of the internal controls established to mitigate risks related to non- compliance with laws and regulations. Reviewin9 the minutes of meetings of those charged wilh governance,. Reviewing the reports and communications issued by Ofsled and the Care Qualily Commission: and Reviewing a sample of legal and professional fees to ensure that any claims, litigation or other compliance related matters were identified and approprialely disclosed. The senior statutory auditor led a discussion with senior members of the engagement team regardlng Ihe susceptibility ofthe entity's financial slatements to material misstatement, including how fraud might occur. The areas identified in this discussion were: Manipulation of the financial statements via fraudulent journal entries and management overriding controls. The incorrect recognition of fee revenue from fraud or error, around the period end. The incorrect recognition of donation revenue from fraud or error. 12
st Cuthbert's Care These areas were communicated to the other members of the engagement team not present at the discussion. The procedures we carried oul to gain eviden in the above areas included: Performed data analylics on the general ledger against rJienl specific criteria Selected a sample of journal entries using client specific risk criteria and agreed to supporting evidence Recalculation of fee income for a sample of service users throughout the year which was compared with actuals lo ensure fee income was complete, accurate and occurred in the financial year. Obtained third party evidence for a sample of donations to ensure occurrence A further description of our responsibilities for the audit of the financial slatements is located on the Financial Reporting Council's website at.. V4WN.frc.org.uklauditorsresponsibilities. This descriplion 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 Parl 16 of the Companies Act 2006. Our audit work has been undertaken so Ihal we might slate lo Ihe 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 exlent 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 oplnions we have formed. c. vtur Cralg Henderson (Senlor Statutory Audltor) For and on behalf of S & W Partners Audit Llmlted Statutory Audltors Chartered Accountants 17 Queens Lane Newcastle upon Tyne NE11RN 13
st Cuthbert's Care Statement of financial activities (incorporating an Income and Expenditure Account) for the year ended 31 March 2025 Unrestrlcted funds Restrlcted funds 2025 2024 Total Nole Total Income Income from charitable actlvltles Care for children 2,242,844 2,242,844 2,604,639 Care for people with disabilities 3,875,143 3,875,143 3,103,823 Care for older people 5,263,276 5,263,276 4,879,191 Grants receivable Fostering & soclal work 900,056 900,056 941,564 Income from donatlons, legacles and other trading actlvlty Donations 109,431 107,030 74,517 291,621 216,461 244,163 228.521 Legacies Other trading activities Investment Income 271,567 346,084 324,990 33,369 87,241 436.426 20,686 107,927 79.317 Total Income 12,782,927 493,854 13,276,781 12,517,644 Expenditure Expenditure on charitable 8clivities 12,443,575 430,070 12,873,645 11,655,513 Expendlture on ralslng funds Donations and legacies Other trading activities Total expendlture 15,553 10,941 15,553 5,670 198,821 209,762 150,494 12,470,069 628,891 13,098,960 11,811,677 Net Income l (deflcit) for the year 312.858 (135,037) 177,821 705,967 All operations are continuing. All gains and losses in the year are included in the Statement of Financial Activities. 14
St Cuthbert's Care Reconciliation of funds for the year ended 31 March 2025 Unrestricted Restricted funds funds Total 2025 Total 2024 Fund balances at 1 April 2024 7,139,612 812,243 7,951,855 7.245,888 Nel Income l (deficit) for the year 312.858 (135.037) 177,821 705.967 Transfers 83,348 (83.348) Fund balances at 31 March 2025 7,535,818 593,858 8,129,676 7,951,855
St Cuthbert's Care Balance sheet as at 31 March 2025 Company reglstration number: 1645917 Note 2025 2024 Fixed assets Tangible assets 5,225,316 5.134,766 Total flxed assets 5,225,316 5,134,766 Current assets Debtors 10 601.501 671,083 Cash at bank and in hand 3,559,449 3,314,923 Total current assets 4,160,950 3,986,006 Creditors: amounts falling duo wlthln one year {1,009,731) (890,827) Net current assets 3,151,219 3,095,179 Total assetsless current Ilabllltles 8,376,535 8,229,945 Creditors.. amounts falling due after more than one year 12 {200,000) (225,000) Provlsions for liabilities and charges 14 (46,859) (53,090) Net assets 8.129,676 7,951,855 The funds of thè Charlty Unrestrlcted funds General funds 18 2.310,502 2,004,846 Designaled funds: Capildl asseis fund 18 5,225,316 5,134,766 7,535,818 7,139,612 Restricted funds 18 593,858 812,243 Total funds 18 8,129,676 7,951,855 The financial statements on pages 14 to 30 were approved by the Board of Directors and were signed on its behalf by: ul Moran Chair 23 July 2025 16
st Cuthbert's Care statement of Cash Flows for the year ended 31 March 2025 Note 2025 2024 Cash flows from operatlng actlvities Nel cash provided by operating activities 16 479,804 1,158,319 Cash flows from investing activities Interest received 107,927 79,317 Purchase of tangible fixed assets Sale of tanglble fixed assets (343,705) (426.175) 500 Net cash used In Investlng actlvltles {235,278) (346,858) Cash flows from financing aclivltles Net cash used In flnanclng actlvltles Change In cash and cash equivalents In the reportlng perlod 17 244,526 811,461 Cash and cash equivalenls at the beginning of the re ortin eriod 3,314,923 2,503,462 Cash and cash equlvalents at the end of the reportlng erlod 3,559,449 3,314,923
St Cuthbert's Care Accounting policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in Ihe preparatlon of the financial statements are as follows- Basls of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charilies: Stalemenl of Recommended Practice applicable to charities preparing Iheir financial statements In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)- (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Acl 2006. Golng concern In the year ended 31 March 2025 the Charity recorded a surplus for the year of £177,821 and had a year end cash position of £3,559.449 with no borrowings. The overall occupancy level in our two nursing homes increased to 91.2% (2024.. 91.1%) and needs to remain at a high level for the homes to remain financially viable. The Charity's forecasts for the coming year factor in the higher salaries and increased employer natlonal insurance contributions paid lo front line carers which are necessary to reward and retain these hlghly skilled employees to ensure that outstanding care is provided to the Charity's beneficiaries. The Charity has no borrowings but does benefit from higher interesl rates for the funds on short term deposit. Fee negotiations are still ongolng with local authorilies but It is clear that central and local Government funding constralnls are restricting our ability to achieve the fee increases necessary to reach full cost recovery. However, the Charity's cash reserves give comfort that any loss is manageable in the medium term, including at least the next 12 months from the dale of signing. The Directors have reviewed and assessed the financial performance for the first quarter of 202512026. A cash flow forecast fof Ihe period to August 2026 has been prepared, which considers realistic downside cash flow sensitivilies 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 accounling.
St Cuthbert's Care Accounting policies (continued) Income Income is recognised when the Charity has entitlement lo the funds, any performance conditions allached to the item(s) of income have been met, it is probable that Ihe income 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 estate has been finalised and notification has been made by the executors(s) to the Charily that a distrlbutlon wlll be made, or when a distribution is received from the eslale. Receipl of a legacy Is only considered probable when the amount can be measured reliably and the Charily has been notified of the executor's inlention to make a distribution. Donated goods and serrflces The value of donated goods lo the Charity which are for resale are recognised in the financial slalements as Income when sold due to the low-value of items received. In accordance with the Charities SORP (FRS 102). volunteer time is not recognised; details about the volunteers, contribution can be found in the Directors, pOrt. ExpendSture 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 directly altribuled to 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 preparing and holding Board meetings and are included within support costs. Resources expended include attrlbutable VAT which cannot be recovered. Tanglble flxed assets Fixed assets costing more than £7,500 are capilalised and included at purchase cost, together with any Incidental costs of acquisilion. Depreciation is calculated so as to write off the cosl of tangible fixed assets, less their estimated residual values, on a stralght-line basis over Iheir expected lives. The principal annual rates used for this purpose are: Freehold 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. 19
St Cuthbert's Care Accounting policies (continued) Fixed asset Investments Fixed asset investments are staled at the lower of cost or net realisable value. Operatlng 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 at Ihe settlement amount due after any trade discount offered. Prepayments are v8lued at the amount prepaid net of any trade discounts due. Cash al bank and In hand Cash al 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. CredStors and provlslons Creditors and provisions are recognised where Ihe Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third paty and the amount due lo settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognlsed at Ihelr settlemenl amounl after allowing for any trade discount due. Flnanclal Instruments The Charity only has financial assels and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are inilially recognised at Iransaction value and subsequently measured at their settlement value wilh the exception of bank loans which are subsequenlly measured at amortised cost using the effective interest method. Grants recelvable Grants, including those for the purchase of fixed assets, are recognised in full when the Charity has entitlement to the funds, any performance conditions altrlc.hed to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Fund ac¢ountlng General funds are unrestricted funds which are available for use at the discretion of the Directors in furtherance of Ihe general objectives of the Charity and which have not been designated for other purposes. Designaled funds comprise unrestricted funds that have been sei 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 restriclions irnposed by donors or which have been raised by the Charity for parlicular purposes. 20
St Cuthbert's Care Accounting policies (continued) Pension costs The Charity makes available a defined contribution pension scheme to employees to which it contributes. The scheme originally set up as a stakeholder pension scheme meets the automatic enrolment rules. There is a historical unfunded pension liability and adjustments lo this pension liability, referred to in note 14, are made in line with actuarial factors based on the invoiced costs from the administering authority and adjusted to Include a cost of living increase. These costs are included in the SOFA. Crltlcal accountSng estlmates and areas of Judgement Preparation of the financial statements requires management lo make estimates and judgements. These are continually evaluated and are based on historical experience and other factors, including expectations of future evenls Ihal are believed to be reasonable under the circumstances. The directors consider there to be no significant eslimales or judgemenls made during the year which had a material impact on the results reported in the financial statements.
st Cuthbert's Care Notes to the financial statements for the year ended 31 March 2025 1 Expenditure on charitable activities Direct costs Support costs 2025 2024 Care for people wilh disabililies 3,768,505 342,546 4,111,051 3,260,310 Care for older people 5,381,790 470,980 5,852,770 5,549,008 C8re for children, foslering & social work 2,722,546 187,278 2.909,824 2,846,195 11,872,841 1,000,804 12,873,645 11,655,513 2 Expenditure on raising funds Direct costs Support costs 2025 2024 Voluntary income, donations & legacies Activities for generaling funds 14,019 1.534 15,553 5,670 203.696 6,066 209,762 150,494 217,715 7,600 225,315 156,164 3 Support costs Support cosls, including governance costs of £29,204 (2024.. £29,371), not directly allributable to projects have been allocated on the basis of employee costs and are analysed below: Employee costs Depreciation Other costs 2025 2024 Charitable activities 596.900 18,994 384,910 1,000,804 979,095 Raising funds 4,533 144 2,923 7.600 4.225 601.433 19,138 387.833 1,008,404 983,320 22
St Cuthbert's Care 4 Employee costs 2025 2024 Employee costs.. Wages and salaries 8,774,509 7,919,604 Social securlty costs 735,034 629,386 Penslon costs 201,711 149,816 9,711,254 8,698,806 The pension costs were charged Ihrough the Statement of Financial Aclivities in respect of the defined conlribulion scheme operated for employees and allocaled belween activities both restricted 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 its overall Insurance policy. Six employees received emoluments above £60,000 (2024.. three). Four of the employees are In the band £60,000-£70,000 (2024: two), one employee is in the band £70.000-£80,000 (2024: none), no employees in the band £80,000-£90,000 (2024: one) and one employee Is In the band £90,000-£100,000 (2024: none}. 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 Controller and the HR Lead. The total employee benefits of the key management personnel of the Charity were £386.595 {2024: £403,680). The 8verage monthly number of employees. analysed by function was: 2025 2025 Full-Tlme Equivalent 2024 2024 Full-Time Equivalent Number Number Charitable activities 305 233 292 232 Expenditure on ralslng funds 306 234 293 233 23
St Cuthbert's Care 5 Directors, emoluments 2025 2024 Aggregate emoluments and fees 93,713 89,250 Emoluments are paid to one director {2024: one). the Chief Executive for services as a director and not as a trustee of the Charily. Provision for payments to the Chief Executive and the Finance Director are made in the company's Articles of Association. Included in the above are contributions made to the Charity's pension scheme in respect of this director of £4,463 (2024: £4,250). The Director rece5ved no reimbursement of travel expenses in the year (2024: £Nil). Other than as noted above, no dlrector was entitled to nor received any remuneration for thelr services {2024: £Nil) or were accruing benefits under Ihe pension schemes (2024- £Nil) or received reimbursement of Ihelr expenses (2024.. £Nil). 6 Net intome for the year Net income for the year is stated after charging.. 2025 2024 Depreciation charge for the year Auditors, remuneration for audit services 253,155 233,460 25,200 23,952 7 Taxation The company is a charity established under the Charities Act 2011. It is therefore exempt from taxation in respect of Income and capital gains received within categories covered by S505 Income and Corporalion Taxes Act 1988 or S256 Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to Gharitable purposes only. 24
st Cuthbert's Care 8 Tangible assets Freehold Furnlture equipment and plant long leasehold buildings Assets In the course of constructlon Motor vehicles Total Cost At 1 April 2024 6,432.782 2.922,958 73,656 39.176 9,468,572 Additions 116,809 128,229 98,667 343,705 Dlsposals {27,736) (27,736) Transfers 39,176 (39.176) Al 31 March 2025 6,588,767 3,051,187 45,920 98,667 9,784,541 A¢cumulated Depreclatlon Al 1 April 2024 2,279.722 1,980,428 73,656 4,333,806 Charge for the year Elimlnaled In respect of dis osals 109,200 143,955 253,155 {27,736) (27,736) At 31 March 2025 2,388,922 2,124,383 45,920 4,559,225 Not book value At 31 March 2025 4.199,845 926,804 98,667 5,225,316 Al 31 March 2024 4,153.060 942,530 39,176 5,134,766 9 Capital commitments Capital expenditure authorised and contracled for but not provided for in the accounls amounts to £313,947 (2024: £237,401). This is for expenditure relating to two lift refurbishmenls and the creation of a third independent living apartment at one of our care homes. This work will be completed durlng the 2025-2026 financial year. 25
St Cuthbert's Care 10 Debtors 2025 2024 Trade debtors 452,271 385,093 Other debtors 6.614 2,278 Prepayments and accrued income 142,616 283,712 601.501 671.083 11 Creditors: amounts falling due within one year 2025 2024 Trade creditors 418,711 229.334 Other creditors 13,300 108,676 Taxation and social securily 196,634 174,419 Accruals and deferred income 381,086 378.398 1,009,731 890,827 12 Creditors: amounts falling due after more than one year 2025 2024 Deferred income 200,000 225,000 200,000 225,000 The Dlrectors expect Ihe deferred income to be released lo the Statement of Financial Actlvities over the next 9 years. It relates lo the prepayment of renlal income for office space by the Roman Catholic Diocese of Hexham & Newcastle and is being released at a rate of £25,000 per annum (2024: £25,000). 13 Reconciliation of deferred income 2025 2024 At 1 April Released during the year 250,000 275,000 (25.000) (25,000) At 31 March 225,000 250,000 There is £25,000 of this deferred income balance included within creditors falling due within one year. 26
St Cuthbert's Care 14 Provisions for liabilities and charges Analysis of amounts charged through the statement of financial activities Pension provision Al 1 April 2024 Established during the year 53,090 3,641 Utilised during the year (9,872) At 31 March 2025 46,859 The pension provision relates to the unfunded pensions liabililies for former teachers of 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 provlsion Is anticipated lo fall due as follows: 2025 2024 In less than one year Between one and two years 9,720 9,576 10,012 9,864 Between two and five years 20,418 20,117 In more than five years 6,709 13,533 46,859 53,090 15 Share capital The company does not have any share capltal and is limited by guarantee. The members of the company are the Dlrectors and their guarantee is limited to £1 each, 27
St Cuthbert's Care 16 Reconciliation of net Income to net cash provided by operating activities 2025 2024 Net Income 177,821 705,967 Deprecialion on tangible fixed asseis Profil on disposal of fixed assets Decrease in deferred income 253,155 233.460 (500) {25,000) {6,231) {25,000) (10.233) Decrease in provisions Decrease in debtors 69,582 158.660 Increase In creditors 118,904 174,782 Interest recelved (107,927) {79,317) Net cash provlded by operatlng actlvitles 479,804 1,158,319 17 Analysls of net funds 1 April 2024 31 March 2025 Cash flow Cash at bank and in hand 3,314.923 244,526 3,559,449 Net funds 3,314,923 244,526 3,559,449 28
St Cuthbert's Care 18 Statement of funds At 1 April 2024 At 31 March 2025 Income Expenditure Transfers General funds 2,004,846 12,782,927 (12.470.069) (7,202) 2,310,502 Deslgnated funds Capital assets fund 5,134,766 90,550 5,225,316 Total unrestrlcted funds 7,139,612 12.782,927 (12,470,069) 83,348 7,535,818 Restricted funds: Alan Shearer Foundation 812.243 493,854 (628,891) (83.348) 593,858 Tolal restrlcted funds 812,243 493.854 {628,891) (83,348) 593,858 Total funds 7.951,855 13,276,781 (13,098.960) 8,129,676 At 1 April 2023 At 31 March 2024 Income Expenditure Transfers General funds 800.000 11,874,006 (11,333,140) 663,980 2,004,846 Deslgnated funds Capltal assels fund Total unrestrlcted funds 5,628,746 (493,980) 5,134,766 6,428.746 11,874,006 (11,333.140) 170,000 7.139.612 Restrlcted funds: Alan Shearer Foundation 817,142 643,638 (478,537) {170,000) 812,243 Total restrlcted funds 817,142 643.638 {478,537) {170,000) 812,243 Tolal fund8 7,245,888 12,517,644 (11,811,677) 7,951,855 Purpose of Funds The General fund represents the free funds of the Charity which are not designated for particular purposes. The Capital 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. 29
St Cuthbert's Care 18 Statement of funds (continued) Analysis of net assets between funds (current year) Restricted Deslgnated funds funds General funds Total Fund balances at 31 March 2025 are represented by.. Fixed assels 5,225,316 5,225,316 Current assets 593,858 3.567,092 4,160,950 Current liabilities (1,009,731) (1,009,731) (246,859) <246,859) Long term liabilities and provisions Net assels at 31 March 2025 593,858 5.225,316 2,310.502 8,129,676 Analysis of nel assets between funds (prior year) Reslrlcted Deslgnated funds funds General funds Total Fund balances at 31 March 2024 are represented by: Fixed assets 5,134.766 5,134,766 Current assets 812,243 3,173,763 (890,827> (890,827) (278,090) (278,090) 3,986,006 Current liabililies Long term liabilities and provisions Net assets al 31 March 2024 812,243 5,134,766 2,004,846 7,951,855 19 Related party transactions The Charily has a close bul arm's length working relationship wilh the Roman Catholic Diocese of Hexham & Newcastle. which is also a charity. The Charity invoiced £74,945 (2024- £90.761) to the Roman Catholic Diocese of Hexham and Newcastle in respect of shared costs associated with the provision of offices for both parties. As al 31 March 2025 £11,998 (2024: £10,697) remained oulslanding and is included in debtors. 30