## **CHARD NNI**
Charity Registration Number: 1016988
TRUSTEES’ REPORT AND UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020
Viking Accounts – Brookside, The Street, Kilmington, Devon, EX13 7RJ
## CHARD NNI CONTENTS
Page Legal and administrative information 1 Trustees Report 2 – 4 Statement of Trustees’ responsibilities 5 Independent examiners’ report 6 Statement of financial activities 7 Balance sheet 8 Notes to the accounts 9 – 14
## **CHARD NNI**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
Trustees: Mrs M Baker (Chair) Mr Wayne Luckett (Treasurer) Miss Cydney Issacs (Secretary) Mr Matthew Constance Gary Shortland Jessie Vowles Daniel Glentworth Gemma Dunn Secretary: Miss Cydney Issacs Charity number: 1016988 Principal address: Clare House Millfield Chard Somerset TA20 2DA Independent examiner: Mrs N Cornelius MAAT Viking Accounts Brookside The Street Kilmington Devon EX13 7RJ Bankers: HSBC plc 11 High Street Chard Somerset TA20 1QQ
## **Trustees report and accounts for the year ended 31 August 2020.**
1
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s governing documents, applicable law and the requirements of the Statement of Recommended Practice, “Accounting and Reporting by Charities” issued in 2005 (revised 2008).
The charity information shown on the Legal and Administrative page forms part of this report. The charity is also known as Chard Neighbourhood Nursery and Schools Out, Chard Children’s Centre and Clare House.
## **Structure, governance and management**
The charity is operated under its constitution dated 2 November 1962, amended 7 February 2000, 12 February 2003, 7 April 2003 and 16[th] July 2013. At the Special General Meeting held on 25 September 2008 it was agreed that the date of the AGM be altered (subject to charity Commission approval) to the spring.
At the AGM held on 19[th] September 2019 the following Trustees were elected:
Mrs Marie Baker (Chair)
Mr Wayne Luckett (Treasurer)
Miss Cydney Isaacs (Secretary)
Mr Matthew Constance
Gary Shortland
Jessie Vowles
Daniel Glentworth
Gemma Dunn
Due to difficulties posed by covid these officers remained in place for the following year.
New trustees are asked to read the National Standards for Day Care so that they are fully conversant with the operational needs and restrictions of the charity, this is backed up by the charity’s own operational policies and procedures. They are also made aware of the need for strict confidentiality within the group and have to sign a letter agreeing to confidentiality of information within the charity. New trustees also have the chance to read the notes from the Committee training run by Somerset County Council that previous members have attended.
The Trustees delegate the day to day running of the setting to the Manager Jayne Windsor who oversees the childcare provided by the Room Managers and Nursery Practitioners and Janet Woodbury who provides Administrative support
2
The trustees meet regularly throughout the year to discuss issues affecting the childcare provision and the use of the charity’s premises and they agree on the action to be taken. The Childcare Manager attends the committee meetings to report matters of importance to the trustees and discuss the issues that arise. The chairperson and treasurer are also required to be authorised signatories for banking purposes.
The management committee has conducted its own review of the major risks to which the charity is exposed and systems have been established to mitigate those risks. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charity. These procedures are periodically reviewed to ensure they still meet the needs of the charity.
## **Objectives and activities**
The charity’s objectives are to enhance the development and education of children primarily under statutory school age, by encouraging parents to understand and provide for the needs of their children through community groups. The charity provides day care and education in Chard to children aged 0 to 5 years. It also provides before and after school and holiday care for children aged 5 to 14 years. As part of the information sharing initiative put together by the Children and Young People’s Services in Somerset there are now even closer links with other services for children.
The trustees will be ensuring that childcare of a high standard continues to be provided and make any necessary improvements to the service it offers. This is done by constant monitoring and evaluation to ensure the charity adapts to the changing needs of the children and families who attend. There is a growing ethnic population in Chard and the charity is working hard to meet their particular needs, a large proportion of these are Portuguese and Polish along with a mixture of other nationalities – the staff work with outside agencies to ensure that all their individual needs are met. There is continual staff training and a development programme ensures that the staff are up to date on the EYFS principles and all the latest thinking and legislation which in turn ensures better childcare and continuing high standards.
This has been a very challenging year as for everyone with the onset of covid. Lockdown caused numbers to drop from 50 to 5 children (keyworkers) per day with the setting being run by a core of 5 members of staff with the rest being put on furlough. The setting returned to near normality in August 2020 with most children returning to normal attendance.
## **Achievements and performance**
The Nursery part of the Charity's activities continues to receive considerable support from Somerset County Council by way of grants received. Contributions for the year amounted to £130,165.
The setting is so busy now that provision has been reorganised to allow for more children. The Hive (SEN provision) has moved upstairs and the 3’s and 4’s have been split into two groups.
## **Financial review**
The charity remains dependent on grants and fees for the services that it provides.
Due to the improvements to financial procedures instigated and increasing number the charity is now building up reserves in line with its Reserves Policy meaning that the setting has money in the bank as a fall back for the Autumn term when numbers of children historically are at the lowest point of the year which equates to lower income. It is anticipated that this trend will continue. The trustees believe that it is appropriate to continue to prepare the accounts on a going concern basis.
## **Asset cover for funds**
Note 16 sets out an analysis of the assets attributed to the various funds and a description of the trusts. These assets are sufficient to meet the charity’s obligations on a fund by fund basis.
In the long term the group will keep building on its considerable experience and long standing success in childcare to meet the ever changing needs of the children and families in the community that it serves.
## **Public Benefit**
The Charities Act (2006) explicitly includes “Public Benefit” in the definition of “Charitable Purpose”. The Trustees believe that Chard NNI meets this requirement as it provides day care and education to any child in the area wishing to attend the setting provided, subject to spaces available, and provides facilities which groups in the community are able to use and hire.
Approved by the Trustees on 8[th] March 2021 and signed on their behalf by:
## **Mrs M Baker (chairperson**
Trustee
4
## **CHARD NNI STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The Trustees are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources of the charity for that year.
In preparing these accounts, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- Prepare the accounts on the going concern basis unless it is appropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and Provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## 5
## **CHARD NNI**
## **/INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF CHARD NNI**
I report on the accounts of the charity for the year ended 31 August 2020, which are set out on pages 7 to 14.
## **Respective responsibilities of Trustees and examiner**
The charity’s Trustees are responsible for the preparation of the accounts. The charity’s Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Association of Acccounting Technicians (AAT)
It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- to state whether particular matters have come to my attention.
## **Basis of Independent examiner’s report**
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with these records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
In connection with my examination, no matter has come to my attention:
- which gives me reasonable cause to believe that in any material respect the requirements:
- i) to keep accounting records in accordance with section 130 of the 2011 Act: and
- ii) to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met: or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Mrs N Cornelius MAAT Date 1st October 2021 Viking Accounts Brookside The Street Kilmington Devon EX13 7RJ 6
## **CHARD NNI STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] AUGUST 2020**
||||Unrestricted|Unrestricted|Unrestricted|
|---|---|---|---|---|---|
|Restricted Total Total||||||
|||||funds||
|funds 2020 2019||||||
||Notes|£||£||
|£ £||||||
|**Incoming Resources**||||||
|**Incoming funds from generated funds**||||||
|Investment income|2|104|||-|
|104
144||||||
|||104||-||
|104 144||||||
|**Incoming resources from charitable activities**3||217,156||19,496||
|236,652 287,609||||||
|**Other incoming resources**||4 _|470______ ___-|||
|____ __ 470___ __ 1,581||||||
|**Total incoming resources**||217,730
_____19,496||||
|_____237,226____289,334||||||
## **Resources expended**
**Charitable activities** Direct Charitable expenditure 5 279,602 43,696 323,298 315,892 Governance costs 7 __2,419 - 2,419 2,419 **Total resources expended** 282,021 43,696 325,717 318,311 **Net incoming/(outgoing) resources for the** (64,291) (24,200) (88,491) (28,977) **Year/ Net movement in funds** Total funds carried forward as 31 August 2020 71,535 55,483 127,018 215,509 **Total funds B/forward at 1 September 2019** 135,826 79,683 215,509 244,486
7
## **CHARD NNI BALANCE SHEET AS AT 31[ST] AUGUST 2020**
**2020 2019** Notes £ £ £ £ **Fixed assets** Tangible assets 10 75,853 111,577 **Current assets** Debtors 11 6,522 24,020
|Cash at bank and in hand
87,874
**Total current assets**
111,894
**Liabilities**
Creditors amounts falling within
one year 12
7,962
**Net current assets/(liabilities)**
51,165
103,932
**Total assets less current liabilities**
127,018
215,509
**The funds of the charity**
Restricted income funds 13
79,683
Unrestricted income funds
135,826
**Total charity funds**14
127,018
215,509
|50,581
57,103
5,938
55,483
72,531
|
|---|---|
||
|
The accounts were approved by the Trustees on 19.10.2021
Mrs M Baker Trustee
8
## **CHARD NNI NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **1. Accounting policies**
## **1.1. Basis of preparation**
The accounts are prepared under the historical cost convention.
The accounts have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP) issued in March 2005 (revised 2008), the Charities Act 2011 and applicable UK accounting standards.
## **1.2.Incoming resources**
Grants are recognised in the statement of financial activities when received by the
Charity. Grants in respect of leasehold building have been included in a restricted fund as
required by the terms and conditions of the local government and other agencies.
Fees receivable and charges for services and use of the premises are accounted for in the
Period in which the service is received.
## **1.3.Resources expended**
Resources expended are recognised in the period in which they are incurred. Charitable
Activities include expenditure associated with the education of children. Governance costs include those incurred in governance of the charity and are primarily associated with constitutional and statutory requirements. Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
## **1.4.Tangible fixed assets**
All assets costing more than £200 are capitalised and are included at cost in the financial
Statements.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at
rates calculated to write of the cost less estimated residual value of each asset over its
expected useful life as follows:
Leasehold property over the term of the lease Fixtures, fittings and equipment 1 to 4 years
Leasehold property is depreciated over the remaining life of the lease from the date the
property works were completed. The lease was originally for a period of 28 years. The
lease commenced before work began on the construction of the new building and eight
years had elapsed by the time the construction was completed.
The Trustees have carried out an impairment review of asset under FRS 11 and consider
that the carrying values shown in the accounts are at least equal to recoverable amount.
9
## **CHARD NNI NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **1.5.Accumulated funds**
The restricted fund comprises grants to be used for a specific purpose as laid down by
the grantor. Expenditure which meets the criteria is charged to the fund.
## **1.6.Unrestricted fund**
The unrestricted fund represents funds which the trustees are free to use in
accordance with the charitable objectives.
## **1.7.Taxation**
As a registered charity, Chard NNI is generally exempt from Income Tax and Capital
Gains Tax, but not Value Added Tax. Irrecoverable Value Added Tax is included in the
costs of those items to which it relates.
## **2. Investment income 2020 2019**
**£**
## **£**
**Interest receivable** 104 144
## **3. Incoming resources from charitable activities**
**Unrestricted Restricted Total Total funds funds 2020 2019 £ £ £ £** Grants received 130,365 1,000 131,365 155,023 Job Retention scheme Funding - 18,496 18,496 - - School fees & registrations received 86,791 86,791 132,586 217,156 19,496 236,652 287,609
Grants received in the year are from Somerset County Council. These grants include £119,018 (2019 £109,953) for funded places for 2, 3 and 4
year olds using the preschool, £1,000 gardening grant and SSDC Covid funding £9,700.
## **4. Other incoming resources**
**2020 2019 £ £** Room hire and service charges - 1,581 Other income 470 - _ 470 1,581
**5. Total resources expended Staff Depreciation Other Total Total costs costs 2020 2019 Charitable activities £ £ £ £ £** Direct charitable expenditure Activities undertaken directly 254,828 35,724 32,746 323,298 315,892 **Governance costs** _____-________________ 2,419______2,419___2,419 254,828 35,724 35,165 325,717 318,311
## **CHARD NNI**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **6. Activities under taken directly**
**2020 2019 £ £** Other costs relating to direct charitable Expenditure comprise:
Play materials 1,792 1,938 Equipment 700 387 Groceries 2,131 3,132 Minibus & Trips 0 0 Maintenance 5,083 2,545 Rent 50 50 Insurance 4,574 4,267
|**7. **|Subscriptions 469
561
Courses and training materials 1,583
1,448
Computer software 1,516
1,395
Card machine hire 625
638
Services 8,563
9,696
Stationery, printing and photocopying 3,075
3,817
Advertising -
-
Telephone 704
871
Bank Charges -
-
Donations -
-
Sundry 1,720
2,093
Clothing Costs _161
_1,070
32,746
33,908
**Governance costs**
**2020**
**2019**
**£**
**£**
Other governance costs comprise:
Independent examination fees 500
500
Non-audit fees 450
450
Consultancy fees 1,469
1,469
Legal & professional fees __ -
__ -
2,419
2,419
|
|---|---|
## **8.** Trustees
None of the Trustees (or any persons connected with them) received any remuneration or had expenses reimbursed during the year.
## **CHARD NNI**
11
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **9. Employees**
## **Number of employees**
|The average monthly number of employees during
**2019**
**Number**
Child care
16
Management & administration
1
17
Employment cost
**2019**
**£**
Wages & salaries
230,109
Pension Costs
2,765
Social security costs
_9,467
242,341
|the year was:
**2020**
**Number**
16
1
17
**2020**
**£**
241,830
3,611
9,387
254,828
|
|---|---|
||
|
There were no employees with annual remuneration of £60,000 or more.
|**10.**|**Tangible fxed assets**|**Tangible fxed assets**||
|---|---|---|---|
|||**Leasehold**|**Fixtures,**|
|**Total**||||
|||**buildings**|**fttings &**|
||||**equipment**|
|||**£**|**£**|
|**£**||||
|**Cost**||||
|At 1 September 2019||759,331|56,561|
|815,892||||
|Additions||-
|-
|
|||_
|_|
|-
|
|||
|**At 31**|**August 2020**|759,331
|56,561
|
|815,892||||
## **Depreciation**
|At 1 September 2019 647,754
704,315
Charge for the year _35,724
_35,724
**At 31 August 2020**683,478
740,039
**Net book value**
At 31 August 202075,853
75,853
**At 31 August 2019**111,577
111,577
|56,561
_ -
56,561
-
__-
|56,561
_ -
56,561
-
__-
|
|---|---|---|
|||
|
|||_|
The leasehold commitment is shown in note 16 of the accounts.
12
## **CHARD NNI NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020**
|**11.**
**Debtors**||||||
|---|---|---|---|---|---|
||||**2020**|||
|**2019**||||||
|||||**£**||
|**£**||||||
|Trade debtors|5,552||||21,050|
|Prepayments and accrued income|970
|||_2,970||
||6,522
||||24,020|
|**12.**
**Creditors:amounts falling due within**|||**one year**|||
||||**2020**|||
|**2019**||||||
|||||**£**||
|**£**||||||
|Trade creditors|1,900||||1,900|
|Taxes and social security costs|2,148||||3,171|
|Accruals||1|,890
|||
|2
,891||||||
||5,938
||||7,962|
|**13.**
**Restricted funds**||||**Movement**|**in funds**|
||**Balance at**|||**Incoming**||
|**Resources Balance at**||||||
|**1 September**||||**resources**||
|**expended** **31 August**||||||
||**2019**|||||
|**2020**||||||
|
**£ £**
Building fund
55,483
Pram shelter
-
Outdoor pay area
-
Garden Maintenance
-
Job Retention scheme funding
___-_
55,483|
|**£**
79,683
-
-
-
-
__
79,683
|
-
-
-
1,000
18,496
19,496
|**£**
(24,200)
-
-
(1,000)
(18,496)
(43,696)
|
|---|---|---|---|---|
||
||
||
|____|||||
The purpose of the restricted funds is to account for grant income where a restriction has
been applied.
The building fund had to be used in the construction of the nursery building. The balance
remaining represents depreciation that will be charged over the remainder of the useful
economic life of the building, which as at 31 August 2020 was 3 years.
The Pram shelter was used in the construction of a shelter attached to the nursery building.
This has now been fully depreciated over its useful economic life.
The outdoor play area fund relates to money received from Somerset County Council and
the Co-Operative to build an outdoor play area for the children. The balance remaining
represents depreciation that will be charged over the remainder of the useful economic life
of the play area, which as at 31 August 2020 was now fully depreciated. 13
## **CHARD NNI NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2020**
**14. Analysis of net assets between funds Unrestricted Restricted Total funds funds £ £ £**
Fund balances at 31 August 2019 are represented by:
Tangible fixed assets 20,370 55,483 75,853 Current assets 57,103 - 57,103 Creditors: - amounts falling due within one year (5,938) ____ __ (5,938) 71,535 55,483 127,018
## **15. Contingent liabilities**
There are certain circumstances in which the grant received from the National Opportunities Fund will have to be repaid. This grant amounted to £110,000 and was specifically towards the cost of the new school building. Circumstances where this grant would have to be repaid include the disposal of the building or the change of its use. This condition applies for 20 years after completion of the building works, therefore until 2023.
## **16. Commitments under operating leases**
At 31 August 2020 the had annual commitment under non-cancellable operating leases as follows:-
||**Land and**|
|---|---|
|**buildings**||
||**2020**|
|**2019**||
||**£**|
|**£**||
|Expiry date:|in over 5 years50
|
|50||
|**Equipment**||
||**2020**|
|**2019**||
||**£**|
|**£**||
|Expiry date:|Within 1 year 1,815|
|1,815||
||Within 2-5 years3,629
|
|5,554||
||5,444
|
|7,369||
||**Insurance**|
|**Protection**||
||**2020**|
|**2019**||
|||**£**|
|---|---|---|
||**£**||
||Expiry date: Within 1 year|324|
||324||
||Within 2-5 years864
||
|81|||
|||1,188
|
|405
|||
|||14|