OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

Registered number: 02575796 Charity number: 1002534

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

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 - 6
Independent auditors' report on the financial statements 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 30

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

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 2023

Trustees

Laurie Swan, Treasurer Paul McGhee (resigned 15 November 2023) Camilla Hollweck (resigned 15 November 2023) James Smith, Co-chair Isavella Theodosiou Ghislaine Halpenny, Co-chair Giulia Geraci (appointed 23 November 2022) Grace Catenaccio (appointed 15 November 2023)

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 Maryum Akhtar, Montpelier Deputy Nursery Manager Ramona Strattan, Sington and Acol Nursery Manager Simona Oltean, Sington Deputy 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

Page 1

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023

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 2023. 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 twotier 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 resulted in a financial deficit of £18k. 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. The financial year to 31 March 2023 has been challenging with the working environment for nurseries continuing to be difficult.

Our occupancy for the year to 31 March 2023 continued to vary over the year and is still overall at a lower level than pre-pandemic levels.

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 2023 was 69% (2022: 67%), with average

Page 2

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

occupancy levels of 78% for Acol (2022: 75%), 68% for Montpelier (2022: 62%), and 61% for Sington (2022: 63%). All nurseries have a target occupancy level of 75%. The small increase in occupancy for the year to 31 March 2023 reflects the slow progress towards pre-pandemic levels, the challenges facing the nursery industry and continued financial difficulties facing parents.

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 14 October 2023.

CCN has not undertaken any large-scale fundraising activities this year but has focused on small scale fundraising in the financial year to 31 March 2023. 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 £51.35 (2022: £0), Montpelier £294.55 (2022: £0) and Sington £0 (2022: £0).

Financial Review

The Statement of Financial Activities shows income for the year of £1,072,435 and total expenditure of £1,094,454 resulting in a deficit for the year of £22,019. Total reserves at the end of the March 2023 were £530,376, £529,430 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 increased by £113,960 from £746,024 to £859,984 due to higher levels of occupancy.

• Resources expended on charitable activities have increased by £33,961 to £1,094,238. This increase is due to a rise in direct costs of £35,283 from £979,543 principally resulting from higher salary costs, which is our most significant expense. Direct staff costs for the year to 31 March 2023 were £837,781, an increase of £36,703 from £801,078 reflecting higher agency staffing required in the post pandemic period, although COVID-19 is still impacting our occupancy.

CCN continues to experience financial pressures, caused by several factors including:

• rent costs,

• utilities,

• a funding rate rising well below inflation (£6.74 in September 2023) as CCN provides childcare to parents on the basis of hours.

Page 3

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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:

Risk 4 - Results of future Ofsted inspections impact reputation of CCN nurseries

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-yearolds. 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.

Reserves policy & Going concern

The charity had net assets at the balance sheet date of £530,376 of which £946 are restricted (net assets of £551,395 at 31 March 2022). 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 2023 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

Page 4

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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 7% was implemented from 1 April 2023. This was a significant rise which the board felt had to be made to allow for a pay rise and to deal with rising costs particularly energy costs. CCN gave the staff a 3% pay rise from 1 April 2023, having already awarded a rise of 3% from 1 September 2022.

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.

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 and ex-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. We are not currently running sub-committees as all members of the Board need to be fully aware of all issues.

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 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 • setting the fee structure and levels

Page 5

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

• significant investment in any of the nurseries, such as garden re-development

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

The government have set the income threshold requiring an audit at £1,000,000. Under these rules CCN is required to have its 31 March 2023 accounts audited. The Trustees have appointed the firm of auditors, GSM & Co, to perform the audit.

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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and accounting estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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

Disclosure of information to the auditors

Each of the persons who are Trustees at the time when this Trustees’ report is approved has confirmed that: • so far as that Trustee is aware, there is no relevant information of which the charitable company's auditor is unaware; and

• that Trustee has taken all steps that they ought to have taken as a Trustee in order to be aware of any relevant information and to establish that the auditors are aware of that information.

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

Laurie Swan

(Trustee) Date: 7 December 2023

Page 6

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMDEN COMMUNITY NURSERIES LIMITED

Opinion

We have audited the financial statements of Camden Community Nurseries Limited (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Page 7

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMDEN COMMUNITY NURSERIES LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 8

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMDEN COMMUNITY NURSERIES LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement designed and implemented to detect irregularities, including fraud are detailed below:

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

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

Page 9

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMDEN COMMUNITY NURSERIES LIMITED (CONTINUED)

disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Other matters

In forming our opinion on the financial statements, which is not modified, we note that the prior period financial statements were not audited. Consequently, International Standards on Auditing (UK) require the auditor to state that the corresponding figures contained within these financial statements are unaudited.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Hill FCA (Senior statutory auditor)

for and on behalf of

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

8 December 2023

Page 10

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
Income from:
Donations and legacies
2
Charitable activities
3
Fundraising activities
Investments
4
Total income
Expenditure on:
Raising funds
Charitable activities
5
Total expenditure
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Actuarial gains on defined benefit
pension schemes
19
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2023
£
208,308
-
-
-
208,308
-
208,308
208,308
-
-
-
946
-
946		 Unrestricted
funds
2023
£
1,740
859,984
346
2,057
864,127
216
885,930
886,146
(22,019)
1,000
(21,019)
550,449
(21,019)
529,430		 Total
funds
2023
£
210,048
859,984
346
2,057
1,072,435
216
1,094,238
1,094,454
(22,019)
1,000
(21,019)
551,395
(21,019)
530,376		 Total
funds
2022
£
225,998
746,024
757
66
972,845
584
1,056,277
1,056,861
(84,016)
32,000
(52,016)
603,411
(52,016)
551,395

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

The notes on pages 14 to 30 form part of these financial statements.

Page 11

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

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

BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Defined benefit pension scheme asset
19
Total net assets
Charity funds
Restricted funds
13
Unrestricted funds
13
Total funds		 23,684
557,215
580,899
(74,734)		 2023
£
211
211
506,165
506,376
506,376
24,000
530,376
946
529,430
530,376		 15,155
568,028
583,183
(56,252)		 2022
£
1,464
1,464
526,931
528,395
528,395
23,000
551,395
946
550,449
551,395

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: 7 December 2023

The notes on pages 14 to 30 form part of these financial statements.

Page 12

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Net cash provided by 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		 2023
£
(12,870)
2,057
2,057
-
(10,813)
568,028
557,215		 2022
£
(79,588)
66
66
-
(79,522)
647,550
568,028

The notes on pages 14 to 30 form part of these financial statements

Page 13

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

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.

Page 14

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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.

Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

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.

Page 15

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

1.7 Tangible fixed assets and depreciation (continued)

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:

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 2023.

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 16

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023.

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 2023 and 2022.

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 17

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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
Subtotal
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
Subtotal		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
16,889
-
184,299
-
7,120
-
-
-
208,308
-
-
1,740
-
1,740
208,308
1,740
Restricted
funds
2022
Unrestricted
funds
2022
£
£
21,750
-
190,915
-
11,663
-
-
1,470
224,328
1,470
-
200
-
200
224,328
1,670		 Total
funds
2023
£
16,889
184,299
7,120
-
208,308
1,740
1,740
210,048
Total
funds
2022
£
21,750
190,915
11,663
1,470
225,798
200
200
225,998

Page 18

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

3. Income from charitable activities

Unrestricted
funds
2023
£
Fees receivable
859,984
Unrestricted
funds
2022
£
Fees receivable
746,024
4.
Interest received
Unrestricted
funds
2023
£
Bank interest
2,057
Unrestricted
funds
2022
£
Bank interest
66
5.
Analysis of expenditure on charitable activities
Summary by fund type		 Total
funds
2023
£
859,984
Total
funds
2022
£
746,024
Total
funds
2023
£
2,057
Total
funds
2022
£
66
Restricted Unrestricted
funds funds Total
2023 2023 2023
£ £ £
Nursery costs 208,308 885,930 1,094,238

Page 19

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

5. Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

Restricted Unrestricted
funds funds Total
2022 2022 2022
£ £ £
Nursery costs 226,528 829,749 1,056,277

6. Analysis of expenditure by activities

Nursery costs
Nursery costs		 Activities
undertaken
directly
2023
£
1,014,826
Activities
undertaken
directly
2022
£
979,543		 Support
costs
2023
£
79,412
Support
costs
2022
£
76,735		 Total
funds
2023
£
1,094,238
Total
funds
2022
£
1,056,278

Page 20

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs (including agency staff)
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		 Total
funds
2023
£
837,781
1,253
19,388
11,672
33,704
6,061
4,178
17,281
109
4,028
15,896
34,897
12,058
8,122
8,398
-
1,014,826		 Total
funds
2022
£
801,078
1,321
19,600
11,393
16,731
16,802
4,685
22,290
-
4,203
17,748
31,187
11,701
7,509
12,295
1,000
979,543

Analysis of support costs

Staff costs
Professional fees
Agency staff
Governance costs (see note 7)		 Total
funds
2023
£
56,515
5,106
8,096
9,695
79,412		 Total
funds
2022
£
54,006
4,844
11,105
6,780
76,735

Page 21

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. Governance costs

2023 2022
£ £
Fees payable for the preparation and audit (2022 - independent
examination) of the Company's annual accounts 7,200 4,050
Other governance costs:
Other financial costs 1,518 1,557
Subscription and licence fees 977 1,173

8. Staff costs - excluding agency staff

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
764,284
48,054
31,794
844,132		 2022
£
772,031
46,394
32,437
850,862

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

Number of adminstrative staff
Number of other staff		 2023
No.
2
47
49		 2022
No.
2
49
51

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 £72,082 (2022 - £68,833).

The average number of employees employed during the year were 49 (2022 - 51) comprising 22 full time and 27 part time employees (2022 - 20 full time, 31 part time).

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL).

Page 22

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10. Tangible fixed assets

Cost or valuation
At 1 April 2022
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Long-term
leasehold
property

£
27,610
27,610
26,410
1,200
27,610
-
1,200		 Fixtures and
fittings
£
4,727
4,727
4,463
53
4,516
211
264		 Computer
equipment
£
1,110
1,110
1,110
-
1,110
-
-		 Total
£
33,447
33,447
31,983
1,253
33,236
211
1,464

Page 23

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11. Debtors

Due within one year
Other debtors
Prepayments and accrued income		 2023
£
19,275
4,409
23,684		 2022
£
11,473
3,682
15,155

12. Creditors: Amounts falling due within one year

Other creditors
Accruals and deferred income		 2023
£
30,348
44,386
74,734		 2022
£
28,491
27,761
56,252

Nursery fees are invoiced in advance. Within accruals and deferred income shown above is £26,093 of deferred income, representing fees which will be released into income from 1 April (2022 - £20,777 in deferred income).

Page 24

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13. Statement of funds

Statement of funds - current year


Unrestricted funds
General Funds - all funds
Unallocated amounts
Restricted funds
LBC 2yr olds
NEF 3yr olds
LBC: support workers
Sustainability grant
Total of funds		 Balance at 1
April 2022
£
550,449
-
550,449
-
-
-
946
946
551,395		 Income
£

864,127
-
864,127
16,889
184,299
7,120
-
208,308
1,072,435		 Expenditure
£
(886,146)
-
(886,146)
(16,889)
(184,299)
(7,120)
-
(208,308)
(1,094,454)		 Gains/
(Losses)
£
(3,000)
4,000
1,000
-
-
-
-
-
1,000		 Balance at
31 March
2023
£
525,430
4,000
529,430
-
-
-
946
946
530,376

14. Summary of funds

Summary of funds - current year


General funds
Restricted funds		 Balance at 1
April 2022
£
550,449
946
551,395		 Income
£

864,127
208,308
1,072,435		 Expenditure
£
(886,146)
(208,308)
(1,094,454)		 Gains/
(Losses)
£
1,000
-
1,000		 Balance at
31 March
2023
£
529,430
946
530,376

Page 25

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

15. 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
2023
Unrestricted
funds
2023
£
£
-
211
946
579,953
-
(74,734)
-
24,000
946
529,430		 Total
funds
2023
£
211
580,899
(74,734)
24,000
530,376

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Restricted
funds
2022
£
-
946
-
-
946		 Unrestricted
funds
2022
£
1,464
582,237
(56,252)
23,000
550,449		 Total
funds
2022
£
1,464
583,183
(56,252)
23,000
551,395

Page 26

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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

Net expenditure 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
Increase in provision within expenditure on charitable activities
Net cash used in operating activities
17.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
18.
Analysis of changes in net debt		 2023
£
(22,019)
1,253
(2,057)
(8,529)
18,482
-
(12,870)
2023
£
557,215
557,215		 2022
£
(84,016)
1,321
(66)
2,919
(746)
1,000
(79,588)
2022
£
568,028
568,028
Cash at bank and in hand At 1 April
2022
£
568,028
568,028		 Cash flows
At 31 March
2023
£
£
(10,813)
557,215
(10,813)
557,215

Page 27

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19. 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 39 (2022 - 38)

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.

The number of staff in the defined benefit scheme is 3 (2022 - 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 net asset for the year ending 31 March 2023 are based on the advice of a professionally qualified actuary, Hymans Robertson LLP. The most recent formal valuation is dated 31 March 2023.

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
2023 2022
% %
Discount rate 4.75 2.7
Expected return on scheme assets -3.8 7.0
Future salary increases 3.5 3.7
Future pension increases 3.0 3.3
At 31 March At 31 March
2023 2022
Years Years
Mortality rates (in years)
- for a male aged 65 now 21.5 21.8
- at 65 for a male aged 45 now 22.8 23.2
- for a female aged 65 now 24.9 24.1
- at 65 for a female aged 45 now 25.9 25.9

Page 28

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19. Pension commitments (continued)

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

At 31 March
2023
%
Equities
59
Bonds
20
Property
17
Cash
4
The Company's share of the assets in the scheme was:
At 31 March
2023
£
Total market value of assets
365,000
The actual return on scheme assets was £10,000 (2022 - £7,000).
The amounts recognised in the Statement of financial activities are as follows:		 At 31 March
2022
%
63
15
15
7
At 31 March
2022
£
400,000
Movements in the present value of the defined benefit obligation were as follows:
Opening defined benefit obligation
Interest cost
Actuarial gains
Benefits paid
Closing defined benefit obligation		 2023
£
377,000
10,000
(22,000)
(24,000)
341,000

Page 29

DocuSign Envelope ID: B5517CE9-1A84-49AD-AB0A-4DAF25E977C4

CAMDEN COMMUNITY NURSERIES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19. Pension commitments (continued)

Movements in the fair value of the Company's share of scheme assets were as follows:

Opening fair value of scheme assets
Actuarial (losses)/gains
Net interest
Benefits paid
Closing fair value of scheme assets		 2023
£
400,000
(21,000)
10,000
(24,000)
365,000

20. 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.

In 2020, 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 2023 the total of the Charity's future minimum lease payments under operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2023
£
20,464
78,400
112,800
211,664		 2022
£
20,464
79,264
132,400
232,128

Page 30