**Charity Registration No. 1015045**
**Company Registration No. 02581092 (England and Wales)**
## **TIK-TOK NURSERY**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **TIK-TOK NURSERY**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** P J Maughan A C Miller F I Milburn M Nurse R Richardson **Charity number** 1015045 **Company number** 02581092 **Registered office** The Boulevard Holmes Drive Gateshead Tyne And Wear England NE10 0DJ **Independent examiner** William Sawyer Murray and Lamb A6 Kingfisher House Kingsway Team Valley Trading Estate Tyne & Wear NE11 0JQ
## **TIK-TOK NURSERY**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Independent examiner's report|5|
|Statement of financial activities|6|
|Summary income and expenditure account|7|
|Balance sheet|8 - 9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 21|
## **TIK-TOK NURSERY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Trustees present their report and financial statements for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity 's governing document, the Companies Act 2006 and "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**
TIK-TOK was set up as a community nursery in East Gateshead in May 1991 gaining charitable status in 1992. A second Nursery at Hertfordshire House, Pelaw was opened in June 2015.
TIK-TOK provides high quality affordable childcare to the local community, supporting those parents who wish to either return to work or continue with their education. Its aim is to work in partnership with parents to promote a stimulating and exciting environment where children can progress at their own rate. The purpose built buildings, funded with substantial support from public sector sources, provide us with the opportunity to realise these aspirations. The Company's
Memorandum provides for operating as has been described above - it would need to be amended if the Company sought to introduce significant diversity.
## **Public benefit**
The trustees have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission with regard to public benefit statements. Public benefit is inherent in the objects of the Charity.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the company should undertake.
## **Achievements and performance**
The trustees have complied with their duty in' Section 4 of the 2006 Charities Act and have due regard to guidance published by the Charity Commission. In summary;
We offer free nursery education for 2 year olds who now receive 15 hours of free childcare per week, as required by current government policy and strongly support Gateshead Council's Sure Start Policy.
We also provide up to 30 hours per week free nursery education for 3-5 year olds. We offer these hours flexibly in order to support those parents wishing to return to work or higher education.
We use the funding streams available to us to improve the personal and professional development of all of our staff and continue to implement a rigorous and tailored programme of staff training.
Under the guidance of OFSTED and the Self Evaluation procedure our staff continue to reflect on the service we offer to ensure best practice. Our Special Educational Needs Co-ordinators continue to work closely with the Early Years Inclusion and Child Development Teams to improve outcomes for the children in our care who require additional support.
The most recent Ofsted inspections were: Hawks Road – June 2019 – assessment “Good”. Pelaw – August 2016 – First inspection - assessment “Good”.
- 1 -
## **TIK-TOK NURSERY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **OVERVIEW - COVID**
The year has been dominated by COVID. The declaration of a pandemic in March 2020 resulted in both nurseries being locked-down with effect from Friday 27 th March. They remained closed until 31 st May, reopening 1 st June for four days a week and returned to full-time five days a week on 1 st September.
The number of children in attendance in June was low and the take up in July gradual but this allowed management the opportunity to introduce working practices necessary to safeguard staff and children alike given the new restrictions. The start of the Autumn term in September re-introduced a sense of normality to activity levels.
The Governments welcome decision toward grants for the Summer term based on March forecast figures, was a significant influence on how we implemented the Job Retention Scheme.
A limited number of staff were furloughed based on the level of fee income at each nursery. No one received less than 80% of their salary on a month by month basis. The majority received 100% apart from the month of August when no grant assisted children were in attendance.
The long term effect of the pandemic remains unknown but we are confident in our ability to retain the necessary flexibility to deal with the unexpected.
Future levels of activity will depend on the usual factors: trends in birth rates locally; competition for pre-school children; and the numbers of student parents attending the local college.
We will continue to seek to employ well-qualified, caring staff and will intensify staff training as an essential part of our plans for the future. The investment in well-motivated staff can only have a positive impact on the level of care and education that the nurseries provide and the manner in which it is delivered.
## **Financial review**
## _Principal funding sources_
The key funders of the operations undertaken by the charity are central and local government under their childcare initiatives. The contributions from these bodies are augmented by parental contributions, normally a 55:45 split. In the year under review, routine child care initiatives via local government amounted to 65%, the parental contributions 23%.
Routine grant contributions included the special arrangements for the summer term, plus a significant top-up payment to assist in overcoming the initial effects of the pandemic. The total for the year was c95% of the 2019/20 level.
The parental contributions for the year were significantly reduced at 44% of the 2019/20 level. This reflected the effect of COVID on parental work arrangements and level of confidence in returning to normality. Claims under the Job Retention Scheme for furloughed employees accounted for 12% of total income and enabled the charity to pursue its commitment to care for the staff and their welfare. The balance of income included:
- The settlement of a COVID-based loss of income insurance claim relating to Pelaw nursery. (We were not able to make a similar claim under the terms of the policy in place at Hawks Road.)
- And the interest on invested funds.
## _Financial Position_
Net incoming resources increased by £45,612 on Unrestricted funds to £785,402, whilst endowment Funds have reduced by £32,760 to £668,564. Net current assets at 31 March 2021 amounted to £422,715.
## _Reserves Policy_
It continues to be the policy of the charitable company to maintain unrestricted funds, which are our free reserves, at a level sufficient to cover fluctuations in income based on projection relating to child numbers on a term by term basis. The amount of such reserves at 31st March 2021 is £785,402.
- 2 -
## **TIK-TOK NURSERY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The key funders of the operations undertaken by the charity are central and local government under their respective childcare initiatives. The contributions from these bodies which amount to 56% of our total income, together with the parental contributions ensure the continuous flow of funds to enable the provision of nursery services of the highest quality.
The attainment of high awards from the Ofsted inspections will ensure that the charity remains on the referral lists of the local authority and safeguard future funding.
## _Investment policy and objectives_
Funds that are not immediately required are invested in suitable deposits, attempting to maximise the return, risk free.
## _Going concern_
Given the level of net assets held at 31st March 2021, the trustees consider the charity to be a going concern.
## _Indemnity_
A qualifying third party indemnity is in force for the benefit of the Trustees.
## **Structure, governance and management**
Hawks Road Community Nursery Limited is a company limited by guarantee, and a registered charity. It operates under the name of TIK - TOK and is governed by its Memorandum and Articles of Association. The Memorandum established the objectives and owners of the charitable company
Charity No. 1015045. Company Registration No. 02581092
The trustees who are also the directors for the purpose of company law, and Endif Endif} who served during the year and up to the date of signature of the financial statements were:
P J Maughan
A C Miller
F I Milburn
M Nurse
R Richardson
## **Trustees**
Hawks Road Community Nursery Limited adheres to the guidelines issued by the Charity Commission for the induction and training of Trustees.
Trustees are elected by the membership at the Annual General Meeting.
All new trustees are given an induction pack detailing the Charity's constitution, strategic plans, recent annual report and accounts and the Charity Commission leaflet - cc3 (a).
- 3 -
## **TIK-TOK NURSERY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The day to day management of both nurseries is delegated to a fully qualified Manager ,Ms K Harker and Mrs S Siddons, who are supported by nursery staff working both full and part time fitting in with home commitments (family friendly policies). All other decisions are made by agreement of the Trustees at management committee meetings. In house financial systems are in place and are supervised by a qualified member of staff.
TIK-TOK is registered with Gateshead Social Services working closely to the local authority Guidelines. The nursery is inspected on a regular basis by OFSTED.
The registered office of the charity is :- The Boulevard Holmes Drive Gateshead NE10 0DJ
## **Risk management**
The Trustees are aware of their responsibilities under current Charity legalisation, and the need for a robust and creditable risks policy.
Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Systems have been established to ensure that risks are reviewed on a regular basis and findings reported to the Board.
The trustees' r eport was approved by the Board of Trustees.
R Richardson Trustee **Dated: 4 August 2021**
- 4 -
## **TIK-TOK NURSERY**
## **INDEPENDENT EXAMINER'S REPORT TO THE OF TIK-TOK NURSERY**
I report to the on my examination of the financial statements of Tik-Tok Nursery (the ) for the year ended 31 March 2021.
## **Responsibilities and basis of report**
As the of the (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the 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 ’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the ’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 , 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 that in any material respect:
- 1 accounting records were not kept in respect of the as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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 financial statements 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 financial statements to be reached.
William Sawyer
Murray and Lamb A6 Kingfisher House Kingsway Team Valley Trading Estate Tyne & Wear NE11 0JQ
Dated: 4 August 2021
- 5 -
## **TIK-TOK NURSERY**
## **STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Unrestricted Endowment**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
-
-
Charitable activities
**4**
560,619
-
Investments
**5**
5,900
-
**Total income**
566,519
-
**Expenditure on:**
Raising funds
**6**
415,331
32,760
Charitable activities
**7**
105,576
-
**Total resources**
**expended**
520,907
32,760
**Net movement in funds**
45,612
(32,760)
Fund balances at 1
April 2020
739,790
701,324
**Fund balances at 31**
**March 2021**
785,402
668,564|**Total**Unrestricted Endowment
funds
funds
**2021**
2020
2020
**£**
**£**
**£**
-
307
-
560,619
687,887
-
5,900
4,574
-
566,519
692,768
-
448,091
512,956
30,639
105,576
144,403
-
553,667
657,359
30,639
12,852
35,409
(30,639)
1,441,114
704,381
731,963
1,453,966
739,790
701,324|Total
2020
**£**
307
687,887
4,574
692,768
543,595
144,403
687,998
4,770
1,436,344
1,441,114|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 6 -
## **TIK-TOK NURSERY**
## **SUMMARY INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**All income funds**
**2021**
**£**
Gross income
**566,519**
Total expenditure from income funds
**520,907**
**Net income for the year**
**45,612**|2020
£
692,768
657,359|
|---|---|
||35,409|
- 7 -
## **TIK-TOK NURSERY**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
**Current assets**
Debtors
**13**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**15**
**Net assets**
**Capital funds**
Endowment funds - general
**16**
**Income funds**
Unrestricted funds|**2021**
**£**
**£**
1,031,251
12,532
431,159
443,691
(20,976)
422,715
1,453,966
-
1,453,966
668,564
785,402
1,453,966|**2020**
**£**
**£**
1,069,964
11,184
394,368
405,552
(32,782)
372,770
1,442,734
(1,620)
1,441,114
701,324
739,790
1,441,114|
|---|---|---|
- 8 -
## **TIK-TOK NURSERY**
## **BALANCE SHEET (CONTINUED)**
## _**AS AT 31 MARCH 2021**_
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021.
The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the on 4 August 2021
R Richardson
## **Trustee**
## **Company Registration No. 02581092**
- 9 -
## **TIK-TOK NURSERY**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**19**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash generated from/(used in)**
**investing activities**
**Financing activities**
Payment of obligations under finance
leases
**Net cash (used in)/generated from**
**financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
-
5,900
(3,888)|**£**
34,779
5,900
(3,888)
36,791
394,368
431,159|**2020**
**£**
(9,756)
4,574
5,508|**£**
45,770
(5,182)
5,508
46,096
348,272
394,368|
|---|---|---|---|---|
- 10 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
Tik-Tok Nursery is a private company limited by guarantee incorporated in England and Wales. The registered office is The Boulevard, Holmes Drive, Gateshead, Tyne And Wear, NE10 0DJ, England.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "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 is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the have a reasonable expectation that the has adequate resources to continue in operational existence for the foreseeable future. Thus the continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the .
## **1.4 Income**
Income is recognised when the is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 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 costs 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.
- 11 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings 2% on cost Plant and equipment 20% on cost and 10% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Impairment of fixed assets**
At each reporting end date, the reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the 's balance sheet when the becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 12 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the ’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **1.12 Leases**
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
## **2 Critical accounting estimates and judgements**
In the application of the ’s accounting policies, the are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
- 13 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **3 Donations and legacies**
||||||**Total**|Unrestricted|
|---|---|---|---|---|---|---|
|||||||funds|
||||||**2021**|
2020|
||||||**£**|
£|
|Other|||||-|
307|
|**Charitable activities**|||||||
||||||**Unrestricted**|
**Unrestricted**|
||||||**funds**|
**funds**|
||||||**2021**|
**2020**|
||||||**£**|
**£**|
|Nursery Fees|||||492,202|
684,887|
|Sundry Income|||||68,417|
3,000|
||||||560,619|
687,887|
|**Investments**|||||||
||||||**Unrestricted**|Unrestricted|
||||||**funds**|
funds|
||||||**2021**|
2020|
||||||**£**|
£|
|Interest receivable|||||5,900|
4,574|
|**Raising funds**|||||||
||**Unrestricted**|**Endowment**|**Total**|Unrestricted|Endowment|
Total|
||**funds**|
**funds**||funds|
funds||
|||**general**|||general||
||**2021**|
**2021**|**2021**|2020|
2020|
2020|
||**£**|
**£**|**£**|£|
£|
£|
|Fundraising and publicity|||||||
|Depreciation and|||||||
|impairment|-|
32,760|32,760|-|
30,639|
30,639|
## **4 Charitable activities**
## **5 Investments**
## **6 Raising funds**
- 14 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**6**|**Raising funds**
Trading costs
Staff costs|415,331
415,331|-
32,760|415,331
448,091|512,956
512,956|**(Continued)**
-
512,956
30,639
543,595|
|---|---|---|---|---|---|---|
## **7 Charitable activities**
|**Charitable**
**expenses**
**Depreciation**
**2021**
**2021**
**£**
**£**
Depreciation and
impairment
-
5,952
Other operating
leases
4,625
-
Rates and water
3,025
-
Insurance
8,228
-
Light and heat
10,675
-
Telephone
1,237
-
Postage and
stationary
1,866
-
Sundries
10,840
-
Other Costs - Food
6,667
-
Play Materials &
Equipment
921
-
Repairs &
Maintenance
10,261
-
Travel
114
-
Bad and doubtful
debts
(1,503)
-
Advertising
-
-
Professional Fees
4,503
-
Sundry other costs
-
-
Bank charges
189
-
61,648
5,952
Share of support
costs (see note 8)
37,976
-
99,624
5,952|**Total**
**2021**
**Charitable**
**expenses**
**Depreciatio**
**n**
**2020**
**2020**
**£**
**£**
**£**
5,952
-
4,146
4,625
3,998
-
3,025
12,207
-
8,228
7,896
-
10,675
13,923
-
1,237
6,187
-
1,866
2,627
-
10,840
14,587
-
6,667
15,940
-
921
4,609
-
10,261
7,914
-
114
437
-
(1,503)
428
-
-
700
-
4,503
2,273
-
-
1,663
-
189
58
-
67,600
95,447
4,146
37,976
44,810
-
105,576
140,257
4,146|**Total**
**2020**
**£**
4,146
3,998
12,207
7,896
13,923
6,187
2,627
14,587
15,940
4,609
7,914
437
428
700
2,273
1,663
58
99,593
44,810
144,403|
|---|---|---|
- 15 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**8**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
36,176
-
Accountancy Fees
1,800
-
37,976
-
Analysed between
Charitable activities
37,976
-|**2021**
Support
costs
Governance
costs
**£**
£
£
36,176
43,035
-
1,800
1,775
-
37,976
44,810
-
37,976
44,810
-|2020
£
43,035
1,775
44,810
44,810|
|---|---|---|
Governance costs includes payments to the auditors of £ 1,800 (2020- £ 1,775 ) for audit fees.
|**9**|**Net movement in funds**|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
||Net movement in funds is stated after charging/(crediting)|||
||Depreciation of owned tangible fixed assets|38,712|34,785|
## 10 **Trustees' Remuneration and Benefits**
There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.
## **Trustee' expenses**
During the year travelling and other sundry expenses totalling £114 (2020: £412) were reimbursed to one trustee.
- 16 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **11 Employees**
The average monthly number of employees during the year was:
|Core Staff
Nursery Staff
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2021**
**Number**
2
32
34
**2021**
**£**
424,584
15,548
11,375
451,507|**2020**
**Number**
2
41
43
**2020**
**£**
535,777
6,963
13,251
555,991|
|---|---|---|
There were no employees whose annual remuneration was £60,000 or more.
- 17 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**12**
**Tangible fixed assets**
**Leasehold**
**land and**
**buildings**
**£**
**Cost**
At 1 April 2020
1,637,994
At 31 March 2021
1,637,994
**Depreciation and impairment**
At 1 April 2020
598,032
Depreciation charged in the year
32,760
At 31 March 2021
630,792
**Carrying amount**
At 31 March 2021
1,007,202
At 31 March 2020
1,039,962
**13**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**14**
**Creditors: amounts falling due within one year**
**Notes**
Obligations under finance leases
Trade creditors
Other creditors
Accruals and deferred income|**Plant and**
**equipment**
**£**
56,667
56,667
26,666
5,952
32,618
24,049
30,002
**2021**
**£**
220
5,170
7,142
12,532
**2021**
**£**
1,620
671
13,895
4,790
20,976|**Total**
**£**
1,694,661
1,694,661
624,698
38,712
663,410
1,031,251
1,069,964
**2020**
**£**
4,694
-
6,490
11,184
**2020**
**£**
3,888
3,502
20,386
5,006
32,782|
|---|---|---|
Included within accrued expenses is an amount of £2,065 (2020 £2,238) relating to pension commitments. Included within other creditors is an amount of £10,455 (2020 £17,672) relating to incoming resources deferred in the current year. This is a combination of GMBC funding and childcare vouchers received in advance for April 2021 fees.
- 18 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**15**|**Creditors: amounts falling due after more than one year**||||
|---|---|---|---|---|
||||**2021**|**2020**|
|||**Notes**|**£**|**£**|
||Obligations under finance leases||-|1,620|
- 19 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **16 Endowment funds**
Endowment funds represent assets which must be held permanently by the charitable company . Income arising on the endowment funds can be used in accordance with the objects of the charitable company and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.
|**Balance at**
**1 April 2019**
**£**
731,963
731,963|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers Revaluations**
**gains and**
**losses**
**Balance at**
**1 April 2020**
**£**
**£**
**£**
**£**
**£**
-
(30,639)
-
-
701,324
-
(30,639)
-
-
701,324|**Movement in funds**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers Revaluations**
**gains and**
**losses**
**Balance at**
**31 March 2021**
**£**
**£**
**£**
**£**
**£**
-
(32,760)
-
-
668,564
-
(32,760)
-
-
668,564|
|---|---|---|
- 20 -
## **TIK-TOK NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **17 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Endowment**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31
March 2021 are
represented by:
Tangible assets
362,687
668,564
Current assets/
(liabilities)
422,715
-
Long term liabilities
-
-
785,402
668,564|**Total**Unrestricted
funds
Endowment
funds
**2021**
2020
2020
**£**
£
£
1,031,251
368,640
701,324
422,715
372,770
-
-
(1,620)
-
1,453,966
739,790
701,324|Total
2020
£
1,069,964
372,770
(1,620)
1,441,114|
|---|---|---|
## **18 Related party transactions**
There were no disclosable related party transactions during the year (2020 - none).
## **19 Cash generated from operations**
|**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
**Cash generated from operations**
**Analysis of changes in net funds**
**At**
Cash at bank and in hand
Obligations under finance leases|**1 April 2020**
**£**
394,368
(5,508)
388,860|**2021**
**£**
12,852
(5,900)
38,712
1
(1,348)
(9,538)
34,779
**Cash flows At 31**
**£**
36,791
3,888
40,679|**2020**
**£**
4,770
(4,574)
34,785
-
3,279
7,510
45,770
**March 2021**
**£**
431,159
(1,620)
429,539|
|---|---|---|---|
## 20 **Analysis of changes in net funds**
- 21 -