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2021-03-31-accounts

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

Registered number: 02575796 Charity number: 1002534

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 7
Independent examiner's report 8
Statement of financial activities 9
Balance sheet 10 - 11
Statement of cash flows 12
Notes to the financial statements 13 - 31

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Laurie Swan, Treasurer Paul McGhee (appointed 10 November 2020) Camilla Hollweck, Chair James Smith Isavella Theodosiou Ghislaine Halpenny (appointed 14 January 2021)

Company registered number

02575796

Charity registered number

1002534

Registered office

16 Acol Road London NW6 3AG

Management team

Reanne Thompson, Senior Nursery Manager Denize Bisset, Montpelier Nursery Manager Shasee Gurung, Montpelier Deputy Nursery Manager Elzbieta Boukhari-Filali, Sington Nursery Manager Ramona Strattan, Acol Nursery Manager Jane McNally, Acol Deputy Nursery Manager

Independent auditors

Griffin Stone Moscrop & Co Chartered Accountants 21-27 Lamb's Conduit Street London WC1N 3GS

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also directors of the charity for the purposes of the Companies Act, present their annual report together with the independently examined financial statements of Camden Community Nurseries Limited (“the charity”) for the year ended 31 March 2021. The trustees confirm that the Annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity’s governing document and provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in March 2015.

Since the charity qualifies as small under section 383 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (strategic Report and Directors’ Report) Regulations 2013 is not required.

Objectives and Activities

The charity's objective and principal activity is established as the advancement of the standard of education and care for pre-school children. This continues to be developed by Camden Community Nurseries (CCN) through adhering to the principles set out in the Early Years Foundation Stage and incorporating the seven areas of learning and development in the nurseries.

Our aim is to provide a community orientated nursery experience, which can be enjoyed by the children and parents alike, to as many beneficiaries as possible. Places are open to all, but targeted towards working parents, parents in further education, low-income families, refugee families, lone parent families and children with special needs.

CCN also supports students and unqualified staff to complete Early Years Education qualifications.

We strive to re-invest all proceeds from our charitable activities back into the charity whilst keeping mindful of ensuring the long term financial stability of the business.

CCN’s primary source of income is fees charged for the provision of childcare in its nurseries. CCN uses a two tier fee structure to encourage a range of families to access high quality childcare. Additionally CCN continues to be part-funded by nursery education grants from the London Borough of Camden and occasionally other grant funders.

CCN does not undertake grant making activities, nor does it rely on contributions from volunteers.

Achievements and performance

The performance of the Charity for the financial year was better than forecast ending the year with a financial surplus of £6,817 (excluding an actuarial gain on the defined benefit pension scheme, of £51,000). Financially the charity strikes a balance between setting our fees at the lowest possible level for our disadvantaged beneficiaries and the need to maintain a financial buffer against future environmental changes.

Acol is our largest nursery with a total of 50 equivalent full time places. Montpelier has 24 places and Sington has 22. All nurseries continue to offer places for the 30-hour government funded childcare programme. In addition, all nurseries also offer places for the London Borough of Camden (LBC) funded 2 year old scheme.

At the year end the numbers of children on roll were as follows:

The average occupancy across CCN for the year to 31 March 2021 was 54% (2020: 82%), with average occupancy levels of 54% for Acol (2020: 83%), 59% for Montpelier (2020: 88%), and 50% for Sington (2019: 74%). All nurseries have a target occupancy level of 75%. The decrease in occupancy for the year to 31 March 2021 reflects the closures and fluctuations due to COVID-19 including changes of circumstances (such as

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

working patterns) for parents.

In normal times CCN generally has higher occupancy in the winter and spring, with lower occupancy levels in the summer and in the academic changeover period (September/October). We continue to work hard to increase occupancy through our communications activity, which includes community events organised through each of the nurseries.

All three of CCN’s nurseries are currently rated ‘Good’ by Ofsted. The dates of the latest Ofsted inspections are as follows. Acol was inspected by Ofsted on 12 February 2019, Sington was inspected on 12 September 2018 and Montpelier was inspected on the 9 March 2018.

CCN has not undertaken any large-scale fundraising activities with all fundraising effectively suspended during the pandemic. CCN has only returned to run small scale fundraising in the financial year to 31 March 2022. Where nursery fundraising takes place at each nursery all funds generated are directly re-invested in the relevant nursery. During the year each nursery raised funds as follows, Acol £0 (2020: £390), Montpelier £0 (2019: £806) and Sington £0 (2020: £205).

Financial Review

The Statement of Financial Activities shows income for the year of £947,054 and total expenditure of £940,237 resulting in a net income for the year of £6,817. Total reserves at the end of the March 2021 were £603,411, £598,265 being unrestricted funds.

Significant points to note on the Statement of Financial Activities are outlined below:

• Income from charitable activities, wholly derived from fees charged to parents, has decreased by £340,618 from £883,705 to £543,087 due to lower levels of occupancy caused by the COVID19 closures and restrictions.

• Resources expended on charitable activities have decreased by £170,535 to £939,721. This decrease is due to a fall in direct costs of £163,728 from £1,033,814 principally resulting from lower salary costs, which is our most significant expense. Direct staff costs (including agency staff) for the year to 31st March 2021 were £748,009, a decrease of £103,420 from £851,429, reflecting lower staffing required during closure periods arising due to COVID-19 and consequent impact on occupancy. Our other variable costs such as food were also reduced due to lower occupancy.

CCN continues to experience financial pressures, caused by a number of factors (excluding COVID-19 issues covered separately), including:

• pension deficit contributions, currently at £0 although the impact of COVID-19 has yet to be quantified for our pension obligations

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Principal Risks & Uncertainties facing the Charity

CCN’s principal risks and strategies for mitigation are set out below:

Risk 1 - Loss of key personnel, including both staff and Trustees This risk is mitigated by:

Risk 2 - External factors place increased financial strain on CCN, leading to going concern issues This risk is mitigated by:

Risk 3 - Reduction in occupancy, leading to reduction in income This risk is mitigated by:

Principal Funding Sources

CCN’s primary source of income is fees charged for the provision of childcare in its nurseries. CCN uses a twotier fee structure designed to enable a range of families to access quality childcare. As a not for profit organisation, CCN offers very competitive fee rates and discounted places for those on lower incomes.

CCN continues to receive nursery education grants from Camden Council and occasionally other grant funders. In particular the 2 year old funding scheme allows CCN to offer part time fully funded places to eligible 2 year olds. CCN also provides the universal funded places and the 30 hour places to eligible 3 & 4 year olds. It is important to note that this funding from the LBC results in lower fees being charged to the parents.

COVID-19 Impact & Assessment

In accordance with government guidance CCN was required to close all the nurseries to non key worker/vulnerable children as of 23rd March 2020. The Board decided to keep Montpelier nursery open to provide care for our key worker children and children who were classified as vulnerable. Acol and Sington nurseries were closed. Whilst keeping open one nursery was very difficult, due to rapidly changing circumstances and consequent guidance as well as being a financial burden, the Board felt it was important to our ethos to maintain a service in the community.

In the first instance all CCN staff not working at Montpelier attempted to work from home where possible by providing parents with guidance on nursery activities, maintaining contact with their key children and completing training. However, from May CCN utilised the furlough scheme and placed 18 members of staff on furlough. The

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

remaining staff either worked at Montpelier or continued to work from home (principally management and admin staff). This was phased down monthly and by 1st September 2020 all staff had returned to work.

From 1st June 2020 CCN was allowed to re-open the nurseries under strict guidelines. These guidelines allowed approximately 50% capacity in a ‘bubble’ structure which curtailed mixing of staff and children. The Board decided to continue to operate 1 ‘bubble’ in Montpelier and open 3 ‘bubbles’ in Acol, which included a bubble of Sington children. In July Sington children returned to the Sington site and Acol opened a further bubble. By 1st July 2020 we were able to offer all parents who wanted places at least some childcare.

Occupancy has been severely hit by the crisis not only due to enforced closures but also parent circumstances and requirements have been changing. Furthermore, the introduction of new children to the nurseries had to be done very slowly in the early re-opening phases. Since the year end occupancy continues to fluctuate more and has been harder to maintain.

In the 2019/2020 summer term CCN still received our funding for 3&4 year olds as well as 2 year olds on the LBC scheme. Additionally parents were asked to contribute 50% of fees in April, no fees in May and only fees for childcare received from June onwards. Our costs have remained high principally because of the number of staff required to operate safely and in accordance with government guidance. However we have received a number of government benefits including furlough funding, reduced rent costs and no business rates for 2020. This enabled CCN to continue operating throughout the pandemic, offering childcare to as many children as possible and not making any redundancies.

As funding and government benefits have reduced CCN expects that the following financial year to 31st March 2022 will continue to be difficult, but CCN remains positive that we can continue to operate in the current climate.

Reserves policy & Going concern

The charity had net assets at the balance sheet date of £603,411 of which £3,146 are restricted (net assets of £545,594 at 31 March 2020). It is the policy for the Board to maintain a level of unrestricted reserves as a buffer against changes in the economic climate that might impact the donors and supporters of the charity.

The current financial year to 31 March 2022 has been very challenging. In conjunction with other nurseries CCN has struggled to recruit qualified staff and has had to deal with fluctuating occupancy. However, the Trustees consider the present level of reserves and funding committed to by third parties, is adequate to support the charity for at least twelve months.

Plans for the future

At the core of our future plans is our commitment to providing affordable nursery places to the local community and to be the first choice for parents in the local area. CCN will continue to promote the nurseries to maintain and increase occupancy. We intend to continue offering as many funded places (2 year old scheme, 30 hour funding and 15 hour universal funding) and lower income places as possible.

In order to do this we will perform a financial and strategic review of the business every 6 months. In particular, the Trustees will continue to review and benchmark fee levels to ensure that the right balance is found between providing value for money for parents and ensuring the financial sustainability of the charity. A fee rise of 5% was implemented from 1st September 2021 and this allowed CCN to give the staff a 3% pay rise from 1st October 2021. At the same time CCN moved to a two-tier fee structure (previously three) to enable CCN to continue offering places at the lowest possible levels.

The Board continues to provide the strategic direction of the charity. The Board has an ongoing commitment to ensuring that CCN’s fundraising, finance and accounting policies are in line with best practice, and to focussing business planning on supporting our vision and mission. We believe we have the skills and expertise within the team and Board of Trustees to fulfil this commitment.

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, Governance and Management

The charity is constituted as a company limited by guarantee and is therefore governed by a Memorandum and Articles of Association, and also registered with the Charity Commission. The Memorandum and Articles of Association were updated during the 2014/15 financial year and adopted by the Board of Trustees. No further revisions have taken place.

Method of appointment, induction and training of Trustees

All parents are offered membership and are invited to attend the AGM. Parents are advised about which Trustees are resigning, and are invited to consider standing for election as Trustees themselves, which they can do via an application process. The majority of Trustees are parents but the Board will also co-opt non-parent Trustees where appropriate giving due regard to the requirement for any specialist skills needed.

New trustees undergo an induction to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and the recent financial performance of the charity. Trustees are encouraged to consult a wide range of guidance available from relevant bodies such as the Charities Commission and undertake external training opportunities.

Organisation

In normal circumstances the Board meets bi-annually in person and quarterly by conference call. In addition specific meetings may be convened as deemed necessary. Since April 2020 the Board has been meeting via video conference call on a near monthly basis. We are not currently running sub-committees as all members of the Board need to be fully aware of all issues. Since the financial year end Board meetings are continuing to occur online but have reduced in frequency and are currently being held at least quarterly.

A Senior Nursery Manager has responsibility (as delegated by the Board) for the day-to-day operation of all three nurseries (Acol, Sington & Montpelier), which constitute Camden Community Nurseries (CCN). This includes operational expenditure, staff management and recruitment, as well as ensuring best practice across all three nurseries.

Each individual nursery has a Manager and Deputy Manager who report to the Senior Nursery Manager and are responsible for the early years’ education within their nurseries and for the line management of the nursery staff. Day to day support is provided to the Senior Nursery Manager by three part time members of staff (Admin Officer, Marketing Officer and Finance Officer). Furthermore, the organisation has access to a pool of specialists for specific work on an ad hoc basis, for example on the strategic direction of CCN, fundraising and HR.

The Board is responsible for all strategic decision making including

Public Benefit

We have referred to the Charity Commissions general guidance on public benefit when reviewing our aims and objectives and in planning our future services. In particular the board of trustees consider how our planned services will contribute to the aims and objectives they have set.

Audit exemption

The government have set the income threshold requiring an audit at £1,000,000. Under these rules CCN is only required to have its 31 March 2021 accounts independently examined. The Trustees have appointed the firm of auditors, GSM & Co, to perform the independent examination.

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Trustees’ responsibilities statement

The trustees (who are also the directors of Camden Community Nurseries Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ Laurie Swan (Trustee) Date: 30/11/2021

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2021

Independent examiner's report to the Trustees of Camden Community Nurseries Limited ('the Company')

I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 March 2021.

Responsibilities and basis of report

As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report.

Signed: Dated: 30/11/2021 Richard Hill FCA Griffin Stone Moscrop & Co Chartered Accountants 21-27 Lamb's Conduit Street London WC1N 3GS

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments
5
Total income
Expenditure on:
Raising funds
Charitable activities
6
Total expenditure
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Actuarial gains/(losses) on defined
benefit pension schemes
20
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2021
£
354,758
-
-
-
354,758
-
355,163
355,163
(405)
-
(405)
3,551
(405)
3,146		 Unrestricted
funds
2021
£
48,858
543,087
-
351
592,296
516
584,558
585,074
7,222
51,000
58,222
542,043
58,222
600,265		 Total
funds
2021
£
403,616
543,087
-
351
947,054
516
939,721
940,237
6,817
51,000
57,817
545,594
57,817
603,411		 Total
funds
2020
£
323,565
883,705
1,395
1,275
1,209,940
791
1,110,256
1,111,047
98,893
(41,000)
57,893
487,701
57,893
545,594

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 13 to 31 form part of these financial statements.

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02575796

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
Defined benefit pension scheme liability
20
Total net assets
Charity funds
Restricted funds
14
Unrestricted funds
14
Total funds		 18,074
647,550
665,624
(56,998)		 2021
£
2,785
2,785
608,626
611,411
611,411
(8,000)
603,411
3,146
600,265
603,411		 13,720
639,607
653,327
(54,859)		 2020
£
4,126
4,126
598,468
602,594
602,594
(57,000)
545,594
3,551
542,043
545,594

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Laurie Swan (Trustee) Date: 30/11/2021

The notes on pages 13 to 31 form part of these financial statements.

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of intangible assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 13 to 31 form part of these financial statements		 2021
£
7,592
351
-
351
-
7,943
639,607
647,550		 2020
£
88,513
1,275
(3,000)
(1,725)
-
86,788
552,819
639,607

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Camden Community Nurseries Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the next twelve months. For this reason they continue to adopt the going concern basis in preparing the financial statements.

1.3 Company status

The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

1.4 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

The principal sources of income for the charity are fees receivable which are recognised on an accruals basis and grants which are recognised on receipt unless there is a contractual arrangement to specify that the income relates to a specified period.

If donors specify that income must be used in future accounting periods or donors' conditions have not been fulfilled, then the income is deferred.

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

1. Accounting policies (continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

Support costs are those costs incurred in a support or administrative role rather than those spent in directly delivering the organisation's principal charitable activity of providing nursery care.

Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

1.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the following bases:

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DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

1. Accounting policies (continued)

1.8 Operating leases

Rentals under operating leases are shown in the Statement of financial activities for the Montpelier and Sington nurseries and printers. A donation in kind and an equivalent expense has been recognised in the accounts for the two properties, where there were signed agreements in place at 31 March 2020, to reflect the rent relief received from London Borough of Camden.

There is a draft lease under discussion for the Acol Nursery as at 31 March 2021.

Rentals under operating lease for printers are charged to the statement of financial activities on a straight line basis over the lease term.

1.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.10 Cash at bank and in hand

Cash at bank and 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.

1.11 Liabilities and provisions

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

Page 15

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

1. Accounting policies (continued)

1.12 Pensions

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

The charity operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 31 March 2021.

In respect of this scheme the appointed actuaries have calculated the net present value of the future liabilities payable to the members of the scheme at the balance sheet date. Accordingly, a liability is reflected in the Balance sheet as at 31 March 2021 and 2020.

1.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 16

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

2. Income from donations and legacies

Grants
LB of Camden - 2 yr old grant
Nursery Education (DfEE) - 3 yr old grant
LB of Camden - support workers
Furlough grant
Subtotal detailed disclosure
Donations
Grants
Subtotal
Grants
LB of Camden - 2 yr old grant
Nursery Education (DfEE) - 3 yr old grant
LB of Camden - support workers
Disability Access Funding
Subtotal detailed disclosure
Donations
Grants
Subtotal		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
46,537
-
293,181
-
15,040
-
-
45,805
354,758
45,805
-
3,053
-
-
-
3,053
354,758
48,858
Restricted
funds
2020
Unrestricted
funds
2020
£
£
30,618
-
275,354
-
8,140
-
615
-
314,727
-
-
8,838
-
-
-
8,838
314,727
8,838		 Total
funds
2021
£
46,537
293,181
15,040
45,805
400,563
3,053
-
3,053
403,616
Total
funds
2020
£
30,618
275,354
8,140
615
314,727
8,838
-
8,838
323,565

Page 17

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

3. Income from charitable activities

Unrestricted
funds
2021
£
Fees receivable
543,087
Unrestricted
funds
2020
£
Fees receivable
883,705		 Total
funds
2021
£
543,087
Total
funds
2020
£
883,705

4. Income from other trading activities Income from fundraising events

Total
funds
2021
£
Unrestricted Total
funds funds
2020 2020
£ £
Fundraising 1,395 1,395

Page 18

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

5. Interest received

Unrestricted
funds
2021
£
Bank interest
342
Other interest
9
351
Unrestricted
funds
2020
£
Bank interest
1,231
Other interest
44
1,275		 Total
funds
2021
£
342
9
351
Total
funds
2020
£
1,231
44
1,275

6. Analysis of expenditure on charitable activities

Summary by fund type

Nursery costs
Nursery costs		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
355,163
584,558
Restricted
funds
2020
Unrestricted
funds
2020
£
£
314,322
795,934		 Total
funds
2021
£
939,721
Total
funds
2020
£
1,110,256

Page 19

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

7. Analysis of expenditure by activities

Nursery costs
Nursery costs		 Activities
undertaken
directly
2021
£
870,086
Activities
undertaken
directly
2020
£
1,033,814		 Support
costs
2021
£
69,635
Support
costs
2020
£
76,442		 Total
funds
2021
£
939,721
Total
funds
2020
£
1,110,256

Page 20

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Rent and services
Rates and property service charge
Light and heat
Repairs and maintenance
Insurance
Other building costs
Staff travel
Telephone
Other office costs
Food costs
Materials and toys
Recruitment and training
Other costs
Net interest cost on defined benefit scheme		 Nursery
costs
2021
£
748,009
1,341
12,086
1,416
15,542
8,435
4,477
6,542
36
5,352
17,658
24,355
7,377
4,290
11,170
2,000
870,086		 Total
funds
2021
£
748,009
1,341
12,086
1,416
15,542
8,435
4,477
6,542
36
5,352
17,658
24,355
7,377
4,290
11,170
2,000
870,086

Page 21

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

7. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Staff costs
Depreciation
Rent and services
Rates and property service charge
Light and heat
Repairs and maintenance
Insurance
Other building costs
Telephone
Other office costs
Food costs
Materials and toys
Recruitment and training
Agency staff
Other costs		 Nursery
costs
2020
£
816,310
1,362
19,737
12,375
16,467
14,321
4,811
19,724
4,855
14,440
35,147
17,232
12,507
35,119
9,407
1,033,814		 Total
funds
2020
£
816,310
1,362
19,737
12,375
16,467
14,321
4,811
19,724
4,855
14,440
35,147
17,232
12,507
35,119
9,407
1,033,814

Page 22

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Professional fees
Agency staff
Governance costs (see note 8)
Staff costs
Professional fees
Agency staff
Governance costs (see note 8)		 Nursery
costs
2021
£
51,938
4,674
7,383
5,641
69,636
Nursery
costs
2020
£
50,112
4,569
9,764
11,997
76,442		 Total
funds
2021
£
51,938
4,674
7,383
5,641
69,636
Total
funds
2020
£
50,112
4,569
9,764
11,997
76,442
8. Governance costs
2021 2020
£ £
Fees payable for the independent examination (audit 2020) of the
Company's annual accounts 3,360 5,820
Other governance costs:
Legal and professional fees - 1,680
Other financial costs 1,012 3,158
Subscription and licence fees 1,269 1,339

Page 23

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
726,832
42,791
30,324
799,947		 2020
£
782,011
48,353
36,058
866,422

The average number of persons employed by the Company during the year was as follows:

Number of adminstrative staff
Number of other staff		 2021
No.
2
47
49		 2020
No.
2
50
52

No employee received remuneration amounting to more than £60,000 in either year.

The key management personnel comprise the Senior Manager and Finance Officer. The total employee benefits of these 2 key management personnel of the charity amounts to £70,701 (2020 - £69,554).

The average number of employees employed during the year were 49 (2020 - 52) comprising 22 full time and 27 part time employees (2020 - 21 full time, 31 part time).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL).

Page 24

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

11. Tangible fixed assets

Cost or valuation
At 1 April 2020
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Long-term
leasehold
property
£
27,610
27,610
23,890
1,260
25,150
2,460
3,720		 Fixtures and
fittings
£
4,727
4,727
4,321
81
4,402
325
406		 Computer
equipment
£
1,110
1,110
1,110
-
1,110
-
-		 Total
£
33,447
33,447
29,321
1,341
30,662
2,785
4,126

Page 25

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

12. Debtors

Due within one year
Other debtors
Prepayments and accrued income		 2021
£
13,637
4,437
18,074		 2020
£
9,278
4,442
13,720

13. Creditors: Amounts falling due within one year

Other creditors
Accruals and deferred income		 2021
£
24,431
32,567
56,998		 2020
£
25,477
29,382
54,859

14. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds - all funds
Restricted funds
LBC 2yr olds
NEF 3yr olds
LBC: support workers
Sustainability grant
Disability Access Funding
Total of funds		 Balance at 1
April 2020
£
542,043
-
-
-
3,146
405
3,551
545,594		 Income
£
592,296
46,537
293,181
15,040
-
-
354,758
947,054		 Expenditure
£
(585,074)
(46,537)
(293,181)
(15,040)
-
(405)
(355,163)
(940,237)		 Gains/
(Losses)
£
51,000
-
-
-
-
-
-
51,000		 Balance at
31 March
2021
£
600,265
-
-
-
3,146
-
3,146
603,411

Page 26

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

15. Summary of funds

Summary of funds - current year

General funds
Restricted funds		 Balance at 1
April 2020
£
542,043
3,551
545,594		 Income
£
592,296
354,758
947,054		 Expenditure
£
(585,074)
(355,163)
(940,237)		 Gains/
(Losses)
£
51,000
-
51,000		 Balance at
31 March
2021
£
600,265
3,146
603,411

16. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
2,785
3,146
662,478
-
(56,998)
-
(8,000)
3,146
600,265		 Total
funds
2021
£
2,785
665,624
(56,998)
(8,000)
603,411

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Endowment
funds
2020
£
(1)
-
-
-
(1)		 Restricted
funds
2020
£
-
3,551
-
-
3,551		 Unrestricted
funds
2020
£
4,127
649,775
(54,859)
(57,000)
542,043		 Total
funds
2020
£
4,126
653,326
(54,859)
(57,000)
545,593

Page 27

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

17. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
18.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2021
£
6,817
1,342
(351)
(4,354)
4,138
7,592
2021
£
647,550
647,550		 2020
£
98,893
1,362
(1,275)
2,966
(13,433)
88,513
2020
£
639,607
639,607

19. Analysis of changes in net debt

Cash at bank and in hand At 1 April
2020
£
639,607
639,607		 Cash flows
£
7,943
7,943		 At 31 March
2021
£
647,550
647,550

20. Pension commitments

The charity operated a defined benefit scheme (DBS) which is now closed and operates a defined contribution scheme (DCS).

The DCS is operated by the Pensions Trust. The number of staff in the defined contribution scheme at the year end was 35 (2020 - 46)

.

The charity operated a defined benefit scheme, which is part of a multi-employer scheme operated by the Local Government Pension Scheme (LGPS), on behalf of Camden Community Nurseries.

Page 28

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

20. Pension commitments (continued)

The number of staff in the defined benefit scheme is 3 (2020 - 3).

FRS 102 Disclosure

The LGPS undertakes a triennial actuarial review to establish the value of the fund and if necessary adjust the contributions paid by employers accordingly.

The pension cost and provision for the year ending 31 March 2021 are based on the advice of a professionally qualified actuary, Hymans Robertson LLP. The most recent formal valuation is dated 31 March 2021.

The Company operates a defined benefit pension scheme.

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

At 31 March At 31 March
2021 2020
% %
Discount rate 1.95 2.30
Expected return on scheme assets 31.0 -6.80
Future salary increases 3.25 2.40
Future pension increases 2.85 2.00

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Equities
Bonds
Property
Cash
The Company's share of the assets in the scheme was:
Total market value of assets		 2021
%
80
9
8
3
At 31 March
2021
£
396,000		 2020
%
76
11
12
1
At 31 March
2020
£
336,000

The actual return on scheme assets was £7,000 (2020 - £10,000).

Page 29

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

20. Pension commitments (continued)

The amounts recognised in the Statement of financial activities are as follows:

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Interest cost
Actuarial losses/(gains)
Benefits paid
Closing defined benefit obligation
Movements in the fair value of the Company's share of scheme assets were as follows:
Opening fair value of scheme assets
Actuarial gains/(losses)
Net interest
Expected return on assets
Benefits paid
Closing fair value of scheme assets		 2021
£
393,000
9,000
41,000
(39,000)
404,000
2021
£
336,000
92,000
9,000
(2,000)
(39,000)
396,000

Page 30

DocuSign Envelope ID: E4B29AFD-3126-42A3-A640-79B0721794A7

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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

21. Operating lease commitments

The charity is provided with the use of three properties by the London Borough of Camden, known as Sington, Montpelier and Acol nurseries.

There is a signed lease in place for the Montpelier and Sington nurseries. There is a draft lease under discussion for the Acol Nursery, however until such time as this is agreed and signed, no commitment is disclosed for this property.

IIn the previous year, the charity signed an operating lease agreement in respect of four printers for the period of five years.

Accordingly, the commitments below detail the future minimum lease payments per these agreements.

At 31 March 2021 the total of the Charity's future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2021
£
20,464
80,128
152,000
252,592		 2020
£
13,114
80,992
171,600
265,706

Page 31