REGISTERED CHARITY NUMBER: 1003253
Report of the Trustees and
Financial Statements
for the Year Ended 31 December 2020
for
Middle Rasen Nursery
Middle Rasen Nursery
Contents of the Financial Statements for the Year Ended 31 December 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Statement of Financial Position | 6 |
| Notes to the Financial Statements | 7 to 12 |
Middle Rasen Nursery
Report of the Trustees for the Year Ended 31 December 2020
The trustees present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The Principal aim of the charity is to advance the education of children, primarily but not exclusively below compulsory school age by;
-
Providing safe and satisfying group play and planned educational activities
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Encouraging other charitable activities through which parents may help the children
Public benefit
The trustees have regard to the Charity Commission's general guidance on public benefit and always ensure that activities which we undertake are in line with our charitable objects and aims.
Volunteers
The charity actively encourages the use of volunteers to support them with delivering the charitable aims. Volunteers presently come from within the pool of members who are parents of those children enrolled with the nursery.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The past year has been one where the charity was impacted significantly by Covid-19. The government announced the first lockdown on 23 March 2020, and the nursery provisions had to be put on hold from this date. Whilst the nursery was able to open to the children of key workers this was on very limited numbers and as such several staff members were asked to work from home. The government introduced a Coronavirus Job Retention Scheme, however the senior members of the previous committee decided not to tap into this resource owing to the fact the charity is already partially government funded.
The nursery reopened on 1 June 2020 at first just for pre school children and then breakfast club and after school club opened shortly after in line with Middle Rasen Primary schools partial reopening.
Following another successful year of holiday club the Nursery opened its doors to increased numbers in September 2020. The influx of children increased considerably over the remainder of the year with the charity adding a further 2 staff members to the team.
The Charity is grateful for the continued support of the John Wilkinson Trust for their contributions to various activities throughout the year. Also to Market Rasen Tesco for their support with breakfast club and snacks throughout the year.
Fundraising activities
Unfortunately due to the impact of Covid-19 Fundraising opportunities have not been possible during the past year, however the Committee are looking to rectify this and along with the team of employees are looking to finance some additional capital assets in the coming years.
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Middle Rasen Nursery
Report of the Trustees for the Year Ended 31 December 2020
FINANCIAL REVIEW
Financial position
Middle Rasen Nursery remains in a healthy financial position despite another loss making year. The charity has a strong list of children that are engaged with the nursery and a waiting list as well.
Covid-19 had an impact upon the charity with regards to its operating capacity with numbers begin greatly reduced at times throughout the year. Fortunately the charity was able to acquire a small business grant amounting to £10,000, however did not make use of the Coronavirus job retention scheme.
A new board was appointed in October 2020 and with a significant debtor position being inherited a decision was taken to write off these balances. The total cost to the charity was £13,199, the new board have now implemented stringent checks across debtors to ensure this situation does not manifest once more.
Reserves policy
The Committee have established a policy whereby the free reserves, that being the unrestricted funds not committed or invested in tangible fixed assets, held by the charity, should be equivalent to approximately 3 months resources expended, which equates to £35,000 in general funds. At this level, the Management Committee feel that they would be able to continue running the organisation in the event of a loss of all funding sources. At 31 December 2020 the free reserves were £46,865 and as such above the expected level, however the committee continue to monitor funds available.
Going concern
The trustees consider the charity to be a going concern despite recording a further loss this year. The charity navigated the Covid-19 obstacles in the current year and subsequent to the year end have continued to go from strength to strength. There is now a waiting list for people wanting to use the nursery and the charity is anticipating a surplus in the coming year.
FUTURE PLANS
A new board was appointed in October 2020, one of the key focusses of the board was and continues to be, to improve the communication between the staff of the Nursery and install a collective effort. As part of this process the board are working on ideas to improve staff welfare including the provision of a new staff room.
The future plans in the main though centre around the core aims which is to enhance the education of children. The nursery continues to look for the very best team to lead this provision, and has appointed a number of people since the year end who have enhanced an already great team.
The charity continues to explore the possibility of expanding its provision in order to eliminate the waiting list it currently has.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its constitution and represents an unincorporated charity.
Recruitment and appointment of new trustees
New trustees are recruited from the membership pool, that being parents of the children the nursery cares for. In addition to this the board are always keen to speak with external parties who are interested in bringing their expertise to enhance the board.
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Middle Rasen Nursery
Report of the Trustees for the Year Ended 31 December 2020
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1003253
Principal address
North Street Middle Rasen MARKET RASEN Lincolnshire LN8 3TS
Trustees
Mrs R Moreton Mrs C Shaw (appointed 29.9.20) (resigned 14.10.20) Mrs V Coulby (appointed 29.9.20) Mrs K James (appointed 29.9.20) Mrs K E Priestley Mrs G Berry (appointed 29.9.20) Mr S Bunney (appointed 27.1.20) (resigned 18.10.21) Mrs A Mason (resigned 29.9.20) Mr J McNeill (resigned 29.9.20) Mrs C Snell (appointed 27.9.21)
Independent Examiner
Nicholsons Chartered Accountants Newland House The Point Weaver Road LINCOLN Lincolnshire LN6 3QN
Approved by order of the board of trustees on 29 October 2021 and signed on its behalf by:
Mrs K James - Trustee
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Independent Examiner's Report to the Trustees of Middle Rasen Nursery
Independent examiner's report to the trustees of Middle Rasen Nursery
I report to the charity trustees on my examination of the accounts of Middle Rasen Nursery (the Trust) for the year ended 31 December 2020.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
Emma Murray FCA Nicholsons Chartered Accountants Newland House The Point Weaver Road LINCOLN Lincolnshire LN6 3QN
29 October 2021
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Middle Rasen Nursery
Statement of Financial Activities for the Year Ended 31 December 2020
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities 4 Nursery Provision Other trading activities 2 Investment income 3 Total EXPENDITURE ON Charitable activities Nursery Provision NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
31/12/20 Unrestricted fund £ 3,580 134,694 18 33 138,325 148,361 (10,036) 64,125 54,089 |
31/12/19 Total funds £ 257 143,002 641 87 143,987 157,059 (13,072) 77,197 64,125 |
|---|---|---|
The notes form part of these financial statements
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Middle Rasen Nursery
Statement of Financial Position
31 December 2020
| 31/12/20 | 31/12/19 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| FIXED ASSETS | |||
| Tangible assets | 7 | 7,224 | 7,935 |
| CURRENT ASSETS | |||
| Debtors | 8 | 4,112 | 14,304 |
| Cash at bank and in hand | 60,842 | 51,634 | |
| 64,954 | 65,938 | ||
| CREDITORS | |||
| Amounts falling due within one year | 9 | (18,089) | (9,748) |
| NET CURRENT ASSETS | 46,865 | 56,190 | |
| TOTAL ASSETS LESS CURRENT | |||
| LIABILITIES | 54,089 | 64,125 | |
| NET ASSETS | 54,089 | 64,125 | |
| FUNDS | 10 | ||
| Unrestricted funds | 54,089 | 64,125 | |
| TOTAL FUNDS | 54,089 | 64,125 |
The financial statements were approved by the Board of Trustees and authorised for issue on 29 October 2021 and were signed on its behalf by:
Mrs K James - Trustee
The notes form part of these financial statements
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Middle Rasen Nursery
Notes to the Financial Statements for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Donated services and facilities:
Donated services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.
On receipt, donated services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Grants:
Income from grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
| Freehold property | - 20% on reducing balance |
|---|---|
| Plant and machinery | - 20% on reducing balance |
| Fixtures and fittings | - 20% on reducing balance |
| Computer equipment | - 20% on reducing balance |
Taxation
The charity is exempt from tax and VAT on its charitable activities.
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Middle Rasen Nursery
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
1. ACCOUNTING POLICIES - continued
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Pension costs and other post-retirement benefits
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Going concern
The charity's main source of income is from the provision of childcare services, both funded and non funded. The trustees confirm that they are not aware of any circumstances which indicate there will be any cessation of the provision of these services. Furthermore the charity continues to strive to generate additional funding where possible, and as such the financial statements are prepared on a going concern basis.
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2. OTHER TRADING ACTIVITIES
| 2. | OTHER TRADING ACTIVITIES | ||
|---|---|---|---|
| 31/12/20 | 31/12/19 | ||
| £ | £ | ||
| Fundraising events | 18 | 641 | |
| 3. | INVESTMENT INCOME | ||
| 31/12/20 | 31/12/19 | ||
| £ | £ | ||
| Deposit account interest | 33 | 87 |
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Middle Rasen Nursery
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
4. INCOME FROM CHARITABLE ACTIVITIES
| Activity Childcare services Nursery Provision Council grant Nursery Provision |
31/12/20 £ 124,694 10,000 134,694 |
31/12/19 £ 143,002 - 143,002 |
|---|---|---|
5. TRUSTEES' REMUNERATION AND BENEFITS There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.
6. STAFF COSTS
| Wages and salaries Social security costs Other pension costs |
31/12/20 £ 111,972 1,746 1,483 115,201 |
31/12/19 £ 119,228 3,128 1,620 123,976 |
|---|---|---|
The average monthly number of employees during the year was as follows:
| 31/12/20 | 31/12/19 | |
|---|---|---|
| Nursery practitioners | 7 | 7 |
| Administration | 1 | - |
| 8 | 7 | |
| No employees received emoluments in excess of £60,000. |
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Middle Rasen Nursery
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
7. TANGIBLE FIXED ASSETS
| Fixtures | Fixtures | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Freehold | Plant and | and | Computer | ||||||
| property | machinery | fittings | equipment | Totals | |||||
| £ | £ | £ | £ | £ | |||||
| COST | |||||||||
| At 1 January 2020 | 7,850 | 9,992 | 12,645 | 5,289 | 35,776 | ||||
| Additions | - | 125 | 249 | 667 | 1,041 | ||||
| Reclassification | (7,850) | 7,850 | - | - | - | ||||
| At 31 December 2020 | - | 17,967 | 12,894 | 5,956 | 36,817 | ||||
| DEPRECIATION | |||||||||
| At 1 January 2020 | 6,533 | 7,896 | 9,605 | 3,807 | 27,841 | ||||
| Charge for year | - | 687 | 649 | 416 | 1,752 | ||||
| Reclassification/transfer | (6,533) | 6,533 | - | - | - | ||||
| At 31 December 2020 | - | 15,116 | 10,254 | 4,223 | 29,593 | ||||
| NET BOOK VALUE | |||||||||
| At 31 December 2020 | - | 2,851 | 2,640 | 1,733 | 7,224 | ||||
| At 31 December 2019 | 1,317 | 2,096 | 3,040 | 1,482 | 7,935 | ||||
| 8. | DEBTORS: AMOUNTS FALLING | DUE | WITHIN ONE YEAR | ||||||
| 31/12/20 | 31/12/19 | ||||||||
| £ | £ | ||||||||
| Trade debtors | 4,112 | 14,304 | |||||||
| 9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||||||||
| 31/12/20 | 31/12/19 | ||||||||
| £ | £ | ||||||||
| Trade creditors | 2,150 | 2,032 | |||||||
| Social security and other taxes | 1,697 | 1,820 | |||||||
| Other creditors | 357 | 5,416 | |||||||
| Accruals and deferred income | 13,885 | 480 | |||||||
| 18,089 | 9,748 |
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Middle Rasen Nursery
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
10. MOVEMENT IN FUNDS
| Net movement At 1.1.20 in funds £ £ Unrestricted funds General fund 64,125 (10,036) TOTAL FUNDS 64,125 (10,036) Net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 138,325 (148,361) TOTAL FUNDS 138,325 (148,361) Comparatives for movement in funds Net movement At 1.1.19 in funds £ £ Unrestricted funds General fund 77,197 (13,072) TOTAL FUNDS 77,197 (13,072) Comparative net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 143,987 (157,059) TOTAL FUNDS 143,987 (157,059) |
At 31.12.20 £ 54,089 54,089 Movement in funds £ (10,036) (10,036) At 31.12.19 £ 64,125 64,125 Movement in funds £ (13,072) (13,072) |
|---|---|
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Middle Rasen Nursery
Notes to the Financial Statements - continued for the Year Ended 31 December 2020
10. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| At 1.1.19 £ Unrestricted funds General fund 77,197 TOTAL FUNDS 77,197 A current year 12 months and prior year 12 months combined included in the above are as follows: Incoming resources £ Unrestricted funds General fund 282,312 TOTAL FUNDS 282,312 |
Net movement At in funds 31.12.20 £ £ (23,108) 54,089 (23,108) 54,089 net movement in fund Resources Movement expended in funds £ £ (305,420) (23,108) (305,420) (23,108) |
|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
11. RELATED PARTY DISCLOSURES
Various members of the board utilised the nursery provisions throughout the year, this was done so on normal commercial terms and at the same rates as other members.
During the year there were 2 trustees who were paid for roles within the charity other than their trusteeship, these amounted to £3,935 (2019 : £7,079).
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