# **Covid CHARITY NUMBER: 1020319 COMPANY NUMBER: 2324172**
## **DRAFT**
## **Report of the Trustees and**
## **Financial Statements for the Year Ended 31 March 2023**
## **For**
## **HIGHBURY COMMUNITY NURSERY**
_(a company limited by guarantee not having share capital and a registered charity)_
**HIGHBURY COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE)**
## **CONTENTS**
||**Page**|
|---|---|
|Legal and Administrative Details|1|
|Trustees’ Report|2|
|Report of the Independent Examiner|6|
|Statement of Financial Activities|7|
|Balance Sheet|8|
|Notes to the Financial Statements|9|
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE DETAILS**
**PRINCIPAL OFFICE** 15 Aubert Park London N5 1TL **CHARITY NUMBER** 1020319 **COMPANY NUMBER** 2324172
The following Committee Members served during the year unless otherwise indicated:
## **MANAGEMENT COMMITTEE MEMBERS (TRUSTEES AND DIRECTORS)**
Geir Freysson (Chair person) **Committee Members** Shahar Avin (Vice Chair) Julian Triverio (Treasurer) Edouard Carakehian (Treasurer) Tameka Small (Company Secretary) Samantha Cheong (Premises) Fiona Shaw (Parent Participation) Khush Sinha (Fundraising) Katie Bloor (Sustainability) Janina Ketterer (Garden Maintenance) Alison Slatter (Garden Maintenance) Maxine Clay (Educational Advisor)
- Appointed November 2022 - Resigned November 2022 - Appointed November 2022 - appointed November 2021 - Resigned February 2022 - Appointed November 2021 - Appointed November 2020
- Appointed November 2022
- Resigned November 2022
- Appointed November 2022
- Resigned April 2022
TO BE UPDATED FOR ANY FURTHER CHANGES After the year end the following directors resigned:
After the year end the following directors were appointed:
Resigned July 2023
Will Lockhart Resigned July 2023 (Minute Taker) Fiona Shaw (Parent Resigned August 2023 Participation) Khush Sinha Resigned November 2023 (Fundraising) Tameka Small Resigned November 2023 (Company Secretary)
Naomi Baster (Minute Taker) Appointed July 2023 Claudia Headon (Fundraising) Appointed November 23 Tom Ferguson (Company Appointed November 23 Secretary) Anjli Raval (Parent Appointed November 23 Participati on)
Management Committee members are directors of the company for the purposes of the Companies Act 2006 and trustees for the purposes of the Charities Act 2011.
## **KEY MANAGEMENT**
Ann Reid Nursery Manager Noelle O’Boyce Financial Manager Catherine Antink Family Liaison Coordinator Joanne English Nursey Administrator
**INDEPENDENT EXAMINER**
Francis Corbishley
Page 1
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE DETAILS**
Moore Northern Home Counties Limited, First Floor, 73-75 High Street, Stevenage
## **BANKERS**
CAF Bank Ltd 25 Kings Hill Avenue Kings Hill, West Malling Kent ME19 4JQ
Page 2
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT**
## **YEAR ENDED 31 MARCH 2022**
The trustees are pleased to present their annual directors’ report together with the financial statements of the charity for the year ending 31 March 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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).
## **STATUS AND GOVERNING DOCUMENT**
Highbury Community Nursery is a registered charity (number 1020319) and a company limited by guarantee without share capital (company number 2324172).
The Nursery is governed by its memorandum and articles of association dated 1 December 1988 amended by special resolution passed 22 December 1992.
## **OBJECT OF THE CHARITY/PUBLIC BENEFIT**
The object of Highbury Community Nursery is:
- 1) To advance the education of children aged under five years in the London Borough of Islington by the provision of safe and satisfying group play.
- 2) To provide facilities in the interests of social welfare for the recreation and leisure time occupation with the object of improving the conditions of life for the said children.
The trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing its aim and objectives and in planning of future activities.
## **ORGANISATION**
Management of Highbury Community Nursery is the responsibility of the Trustees, who are the directors to General Meeting. The Management Committee meets at least six times a year.
## **REVIEW OF ACTIVITIES AND FUTURE DEVELOPMENTS**
## **Children**
We have welcomed many new families into the nursery this year and the children are settling in and enjoying all the nursery experiences. The children have participated in many fun learning opportunities and outings following their interests including the postal museum, Horniman museum, the art gallery at the British museum as well as whole nursery trips at Paradise Wildlife Park and picnic in the park attended by many parents. The school leavers enjoyed their graduation and a return to the restaurant. The older children continue to participate in sports school and yoga sessions, wellbeing sessions ‘peaceful kids’ have been introduced to sunshine unit with great success. The phase 1 and 2 phonics sessions carried out by Katie Early years teacher with our older children continue to be successful in progressing children from their starting points through fun activities. The children have enjoyed opportunities to engage in Spanish and Greek sessions carried out through fun songs and games.
Page 3
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT YEAR ENDED 31 MARCH 2022**
The children have also had some rich experiences learning about other cultures and traditions through celebrating festivals from around the world such as Rosh Hashanah, Diwali and Holi, Chinese New Year and Thanksgiving which were enjoyed by all. Sam (Louie’s dad) has shared his enjoyment of music with us through Ukulele sessions which have been thoroughly enjoyed and we look forward this continuing! And we have also had visits from “biggie” (Tracey Olman, Elijah and Felix’s granny) to tell stories to the children as well as Jo (Isobel and Jess’s mum) who has come to tell stories in our grotto, Shruti (Aarya’s mum) and Khush (Sukhi’s mummy) came to do Diwali activities with the children whilst Anjli (Shayan’s mum) made some tasty treats for the children and staff and came to read a book for Diwali. Nigel (Isobel and Jess’ dad) has also supported us through the year with our recycling by taking it to the recycling centre for us. And a mixture of parents attended a garden sweep on a Saturday to support us in keeping our garden tidy, thank you all!
## **Staff/students/training**
This year we have welcomed some new staff to our nursery team who are sharing their skills with the children. We have said goodbye to some staff who have moved on to pastures new and we wish them success in their new ventures. This year the staff have completed various online training courses including, safeguarding, First Aid, and many more.
Various internal staff workshops have taken place enhancing valuable skills and updating our new staff with the nursery ethos and policies.
## **Achievements**
The children have adapted very well to the change of rooms now becoming rainbow unit and sunshine unit and are enjoying the extended environment.
We passed our food and Hygiene inspection retaining our 5 stars
We passed our Islington categorisation inspection receiving a green rating (on the traffic light system), with two training updates as recommendations.
The family services; in person baby massage and sign and learn sessions and workshops have reinstated with a high take up and we have reintroduced stay and play on a monthly basis.
## **Fundraising**
Our two raffle events throughout the year and a silent auction to win a signed arsenal football shirt have raised valuable funds towards our garden redevelopment.
## **Parent/carer participation**
We would also like to thank some parents for supporting us with tasks throughout the year, Vincent (Marcel’s dad) for his DIY skills, Naomi (Nina’s mum) and Nigel (Isobel and Jess’s dad) for recycling runs.
We would also like to thank Geir and the committee who have provided us with support throughout the year.
Page 4
## **HIGHBURY COMMUNITY NURSERY**
# **(A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT**
## **YEAR ENDED 31 MARCH 2022**
## **FINANCIAL REVIEW**
The principal financial objective for the year continues to be to provide a consistent and high standard of care for the children at our nursery at a reasonable cost, maintaining prudent reserves and managing resources to benefit our community.
In 2021/22 the nursery had not fully recovered from Covid-19 as its outgoing resources exceeded incoming resources, generating a deficit of £154,630 however in 2022/23 we made a surplus of £31,989
Total expended resources decrease by 3.7% compared to the prior year at £1,014,672 (2021/22; £1,052,915).
Staff costs make up the majority of the nursery’s expenses. The nursery continues to pay the London Living wage to all qualified staff, as well as running a pension plan. The nursery maintained the required levels of staffing through the year. Overall staff costs decreased this year by 10% to £771,893 (2021/2022; £859,800).
Total incoming resources (excluding bank interest received) increased by 14% compared to last year (2020/21 decreased by 26%). Covid-19 had affected parents needs therefore had also affected the Nursery’s income however this has got better this year. Fee increases are determined by Islington Council each year. The mix of children attending the nursery also affects how the income varies.
The nursery continues to benefit from Islington Council’s support through grants of £201,327 in the year (2021/22; £225,728).
The depreciation policy of capitalised building works is considered to be prudent and is held in a designated fund 2022/23; £233,239 (2021/22; £253,931).
## **RESERVES POLICY**
In line with the Charities’ Commission’s recommendations for nurseries, the nursery maintained _£774,468_ of free reserves as at 31 March 2022. This amount exceeds _nine_ months’ average operating expenses.
## **PRINCIPAL RISKS AND UNCERTAINTIES FACING THE CHARITY**
The board meet 11 times a year and regularly accesses risk. It maintains a Risk Register covering financial, health and safety, resourcing, and legal risks.
## **DECISION MAKING**
The nursery management and committee regularly solicit and review suggestions from parents and staff for projects with a beneficial and lasting impact on the nursery which are discussed in the regular trustee meetings.
## **FUNDRAISING**
Page 5
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT**
## **YEAR ENDED 31 MARCH 2022**
The Nursery and its Management Committee are very pleased with fundraising efforts during the year. These were completed by Management and Development Committee members and were thus at no cost to the Nursery.
## **INVESTMENT POLICY**
Investments are held in accordance with the Trustees’ powers, which enable them to invest monies not required immediately for Highbury Community Nursery charitable objectives, as may be thought fit subject to any conditions required by law. The Trustees’ investment policy is to select investments on a prudent and cautious basis, as these funds are required for the working capital for running the nursery.
The nursery benefits, as do individual and small companies, from the government’s guarantee protection scheme of up to £85,000 per bank. The nursery currently holds a significant amount with one single bank and will review the benefits of diversifying its investment holdings to a number of banks in light of operational efficiency.
## **TRUSTEES’ APPOINTMENT**
Trustees are elected on an annual basis at the AGM. Trustees are select based on the relevant experience they have for the task they are appointed for. With the exception of the trustee who provides specialist educational and curriculum experience all trustees are parents of children attending the nursery.
## **TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS**
The charity trustees (who are also the directors of the charity or the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the 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 estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 6
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT**
## **YEAR ENDED 31 MARCH 2022**
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Statement as to disclosure to our Independent Examiner**
In so far as the trustees are aware at the time of approving our trustees’ annual report:
- there is no relevant information, being information needed by the Independent Examiner in connection with preparing the report, of which the Independent Examiner is unaware, and
- the trustees, having made enquiries of fellow directors have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant information and to establish that the Independent Examiner is aware of that information
## **APPROVAL**
This report was approved by the Trustees on [ ] and by order of the Trustees, signed on their behalf, by:
Geir Freysson Chair
Edouard Carakehian Treasurer
Page 7
**HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE)**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HIGHBURY COMMUNITY NURSERY YEAR ENDED 31 MARCH 2022**
_____________________________________________________________________________
I report to the trustees on my examination of the financial statements of Highbury Community Nursery (the charity) for the year ended 31 March 2023.
## **Responsibilities and basis of report**
As the trustees of the charity (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 charity 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 charity’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**
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 charity 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.
Francis Corbishley Independent Examiner Moore Northern Home Counties Limited First Floor 73-75 High Street Stevenage Hertfordshire SG1 3HR
Dated: [ ]
Page 8
**HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITY YEAR ENDED 31 MARCH 2022**
_____________________________________________________________________________
|**Notes**
**INCOME**
Donations
**3**
Charitable activities
_Grants received_
**4**
_Fees charged_
Investment income
**TOTAL INCOME**
**EXPENDITURE**
**6**
Cost of raising funds
Cost of charitable activities
**TOTAL EXPENDITURE**
**NET**
**INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
Funds bought forward at 1 April
2021
**TOTAL FUNDS BALANCE**
**CARRIED FORWARD AT**
**31 MARCH 2022**
**Other LBI Grants**
**Gifts Money from parents**
**collection to all staff**||2023
Unrestricted
Funds
£
1,632
122,081
840,054
1,748
965,515
44
933,762
933,806
31,709
619,838
651,547
1,318
280
1,598|2023
Restricted
Funds
£
1,900
79,245
_-_
-
81,145
-
80,666
80,666
280
1,318
1,598|**2023**
**Total**
**£**
**3,532**
**201,327**
**840,054**
**1,748**
**1,046,660**
**44**
**1014,628**
**1014,672**
**31,989**
**621,158**
**653,145**|_2022_
_Total_
_£_
940
169,463
727,602
280|
|---|---|---|---|---|---|
||||||898,284|
||||||143
1052,772|
||||||1052,915|
||||||(154,630)
775,786|
||||||621,156|
|||||||
|||||||
There were no recognised gains or losses for 2022 or 2021 other than those included in the Statement of Financial Activities. All income and expenditure derive from continuing activities.
The notes on pages [ to ] form part of these financial statements.
Page 9
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE)**
Company Number: 02324172
**BALANCE SHEET 31 MARCH 2022**
|**Notes**
**FIXED ASSETS**
Tangible assets
8
**CURRENT ASSETS**
Debtors
9
Cash at bank and in hand
**CREDITORS**: amounts
falling due within one
year
10
**NET CURRENT ASSETS**
**NET ASSETS**
**FUNDS**
General Fund
Designated Fund
12
Restricted Funds
11
**TOTAL FUNDS**
12|£
**11,137**
**521,578**
**532,715**
**112,809**|**2023**
£
**233,239**
**419,905**
**653,145**
**418,307**
**233,239**
**1598**
**653,145**|_£_
_14,064_
_450,601_
_464,666_
_97,440_|_2022_
_£_
_253,931_
_367,225_|
|---|---|---|---|---|
|||||_621,156_|
|||||_365,907_
_253,931_
_1,318_|
|||||_621,156_|
For the year ending 31 March 2022, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the special provisions applicable to small companies subject to the small companies regime and in accordance with FRS 102 SORP
Approved by the Trustees on [ ] and signed on their behalf:
Geir Freysson Chair
Edouard Carakehian Treasurer
The notes on pages [ to ] form part of these financial statements.
Page 10
## **HIGHBURY COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
## **_____________________________________________________________________________**
## **1. ACCOUNTING POLICIES**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **a) Basis of preparation**
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Highbury Community Nursery meets the definition of a public interest entity under FRS102.
The financial statements have been prepared in sterling which is the functional currency of the charity.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## **b) Preparation of the accounts on a going concern basis**
In the opinion of the trustees the charity remains a going concern. Whilst the effect of the Coronavirus and lockdown had a significant impact on the charity’s income it has returned to pre-pandemic levels. This combined with healthy general fund reserves gives the trustees confidence about the charity’s future and accordingly the financial statements have been prepared on a going concern basis.
## **c) Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ 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.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance is deferred until the criteria for income recognition are met.
## **d) Donated services and facilities**
Donated professional 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.
Page 11
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
On receipt, donated professional 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.
## **e) 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.
## **f) Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are grants and donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.
## **g) Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds comprise materials for fund raising events.
- Expenditure on charitable activities includes the costs of activities undertaken to further the purposes of the charity and their associated support costs.
- Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **h) Allocation of support costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity’s activities.
These costs have been allocated between cost of raising funds and expenditure on charitable activities.
## **i) Operating leases**
The charity had one operating leases in the year which was in respect of its photocopier
## **j) Tangible fixed assets**
Individual fixed assets costing are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:
Page 12
## **HIGHBURY COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________**
## **Asset Category**
The rates used during the year were as follows:
Office equipment - 25% straight line Building improvements - lower of the estimated useful life and the remaining term of the lease, and no longer than 20 years
The lease on 15 Aubert Park runs to 2038.
## **k) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **l) Cash at bank and in hand**
Cash at bank and cash 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.
## **m) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **n) 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **o) Judgements and key sources of estimation uncertainty**
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:
## _Useful economic lives of tangible assets_
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of the plant and equipment and note 1.j for the useful economic lives for each class of assets.
## _Contributions in kind_
The value of the contributions in kind 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.
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## **HIGHBURY COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
## **_____________________________________________________________________________**
There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
## **p) Employee benefits**
- **Short term benefits**
- Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.
- **Employee termination benefits**
Termination benefits are accounted for on an accrual basis and in line with FRS 102.
## **2. LEGAL STATUS OF THE CHARITY**
The charity is a company limited by guarantee and has no share capital.
## **3. GRANTS, DONATIONS AND SIMILAR INCOMING RESOURCES**
|Unrestricted
Fund
2023
£
Income from fundraising events
1,632
Donations
-
1,632|Restricted
Fund
2023
£
-
1,900
1,900|**Total**
**2023**
£
**1.632**
**1,900**
**3,532**|_Total_
_2022_
_£_
_940_|
|---|---|---|---|
||||_940_|
In 2021 all income from fundraising was attributed to the general fund
## **4. GRANTS RECEIVED IN RESPECT OF CHARITABLE ACTIVITIES**
|Unrestricted Fund
Restricted
Fund
2023
2023
£
£
London Borough of Islington
_Main Grant_
-
31,329
_Nursery Education Grant over 3’s_
117,581
-
_Rebate Grant_
-
13,772
_Two year old grants_
-
-
_Other LBI Grants_
-
21,562
University of Greenwich
4,500
-
Coronavirus Job Retention Scheme
-
-
122,081
79,245|**Total**
**2023**
**£**
**31,329**
**117,581**
**13,772**
**-**
**21,562**
**4,500**
**-**
**201,327**|_Total_
_2022_
_£_
_31,434_
_112,140_
_4,383_
11,608
_-_
_2,500_
_-_|
|---|---|---|
|||_169,463_|
In 2021 £171,962 of grant income was attributed to the general fund and £92,738 to the restricted fund.
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**HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
## **_____________________________________________________________________________**
## **5. WAGES AND SALARIES**
|Employee costs were as follows:
Salaries
Employers National Insurance
Employers Pension Contribution|**2023**
**£**
**657,469**
**14,094**
**60,799**
**732**|_2022_
_£_
_761,135_
_15,650_
_64,709_
_841_|
|---|---|---|
The average number of employees during the year was (2022: 33).
There were no employees with emoluments above £60,000 (2022: nil)
The key management personnel comprise the trustees, the nursery manager, the financial manager, the family liaison co-ordinator and the nursery administrator. The total employee benefits of the key management personnel of the charity were £151,483 (2021: £146,451).
The charity trustees were not paid, did not received any other benefits from employment nor payment of expenses from the charity in the year (2021: £nil).
## 6. **ANALYSIS OF EXPENDITURE**
|Staff costs including, recruitment,
training & welfare
Care and Education costs
Office costs
Professional fees
Premises costs
Fundraising
Restricted Project Costs
Depreciation
Support costs
Governance costs|2023
£
Cost of
Funds
raising
-
-
-
-
-
44
-
-
-
-
44|2023
£
Cost of
Charitable
activities
771,893
70,266
56,635
5,222
71,811
-
-
1,620
4,455
10,559
1,014,62
8|**2023**
**£**
**Total**
771,893
**70,266**
**56,635**
**5,222**
**71,811**
**44**
**-**
**1,620**
**4,445**
**10,559**
**1014,672**|_2022_
_£_
_Total_
_859,800_
_63,558_
_41,838_
_922_
_49,541_
_143_
_712_
_-_
_7,433_
_2,160_|
|---|---|---|---|---|
|||||_1052,915_|
* Buildings Insurance is paid by the London Borough of Islington and deducted from grant income.
Further detail in respect of the expenditure for the year is at Note 16.
Page 15
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
|**________________________________________________________**
**7.**
**ANALYSIS OF SUPPORT AND GOVERNANCE COSTS**
Support Costs
Governance
costs
£
£
Independent Examination
Audit
959
9,600
Payroll and accounting services
4,445
-
4,445
10,559
**8.**
**TANGIBLE FIXED ASSETS**
**Building**
**Development**
**Works & Soft**
**Play Area**
**COST**
**£**
At 1 April 2022
931,213.78
Additions in period
**At 31 March 2023**
931,213.78
**DEPRECIATION**
At 1 April 2021
689,133.63
Provision in period
16,138.73
**At 31 March 2022**
705,272.35
**Net book value at 31 March 2022**
**225,940.43**
Net book value at 31 March 2021
_242,080.15_
9.
**DEBTORS**
Prepayments
Nursery fees
Other|**________________________________________________________**
**7.**
**ANALYSIS OF SUPPORT AND GOVERNANCE COSTS**
Support Costs
Governance
costs
£
£
Independent Examination
Audit
959
9,600
Payroll and accounting services
4,445
-
4,445
10,559
**8.**
**TANGIBLE FIXED ASSETS**
**Building**
**Development**
**Works & Soft**
**Play Area**
**COST**
**£**
At 1 April 2022
931,213.78
Additions in period
**At 31 March 2023**
931,213.78
**DEPRECIATION**
At 1 April 2021
689,133.63
Provision in period
16,138.73
**At 31 March 2022**
705,272.35
**Net book value at 31 March 2022**
**225,940.43**
Net book value at 31 March 2021
_242,080.15_
9.
**DEBTORS**
Prepayments
Nursery fees
Other|**__**|**____________**
**2023**
**Total**
**£**
**959**
**9,600**
**4,445**
**15,004**
**Furniture**
**&**
**Equipment**
**£**
94,268.03
1,486.00
95,754.03
82,418.95
6,038.59
88,457.54
**7,296.49**
_11,849.08_
**2023**
**£**
**-**
**9,761**
**1,375**
**11,137**|**_**|**_______**
_2022_
_Total_
_£_
_2,160_
_7,433_
_9,593_
**Total**
**£**
1,025,481.81
1,486.00
1,026,967.81
771,552.58
22,177.31
793,729.89
**233,237.92**
_253,929.23_
_2022_
_£_
_2,641_
_11,035_
_389_
_14,064_|
|---|---|---|---|---|---|
||931,213.78|||||
||689,133.63
16,138.73|||||
||705,272.35|||||
||**225,940.43**|||||
||_242,080.15_|||||
|||||||
|||||||
Page 16
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
## **_____________________________________________________________________________**
## **10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Social Security
Trade creditors
Other creditors
Fees paid in advance
Parents’ deposits
Accruals
**11. RESTRICTED FUNDS**
London Borough of Islington
_Main Grant_
_Rebate Grant_
_Two year old grants_
_Maternity Grants_
_Other LBI Grants_
_Other_
**Total**|_Balance at_
_1 April_
_2022_
_£_
-
-
-
1,318
1,318|**2023**
**£**
**11,157**
**495**
**-**
**5,523**
**83,330**
**12,305**
**112,809**
Movement of Funds
Resources
Resources
Arising
Used
£
£
31,329
31,329
13,772
13,772
-
21,562
-
21,562
12,582
1,900
12,582
1,620
81,145
80,865|**2023**
**£**
**11,157**
**495**
**-**
**5,523**
**83,330**
**12,305**
**112,809**
Movement of Funds
Resources
Resources
Arising
Used
£
£
31,329
31,329
13,772
13,772
-
21,562
-
21,562
12,582
1,900
12,582
1,620
81,145
80,865|_2022_
_£_
_10,416_
_2,257_
_555_
_7,629_
_68,068_
_8,515_
_97,440_
**Balance at**
**31 March**
**2023**
**£**
-
-
-
1,318
280
1,598|
|---|---|---|---|---|
||||||
## **Name of restricted fund**
## **Description, nature and purposes of the fund**
London Borough of Islington _Main Grant_ - Finance received for all subsidised children in the setting, providing for their care and education _Rebate Grant_ - Reimbursements received for siblings and disabled children and all balance of grant from one term to the next - _Two year old Grant_ Finance received for 2 year olds who qualify for this funding _Other LBI Grants_ - Graduate leader fund and training fund
## **12. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Tangible Fixed
Net current
Assets
Assets
2023
2023
£
£
**Unrestricted Funds**
-
418,307
**Designated Funds**
233,238
-
**Restricted Funds**
-
1,598
**Total**
233,238
419,905|**Total**
**2023**
**£**
**418,307**
**233,238**
**1,598**
**653,143**|_Total_
_2022_
_£_
365,907
_253,930_
_1,318_|
|---|---|---|
|||_621,156_|
Page 17
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
**_____________________________________________________________________________** A transfer of £14,956 (2021: £17,202) was made from designated funds to unrestricted fund. Tangible fixed assets are held in a designated fund, this enables the charity to give a fair view of its free reserves/general funds.
## **13. TAXATION**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
## **14. RELATED PARTY TRANSACTIONS**
The trustees did not receive remuneration in the year.
Trustees must be parents of the Nursery under the constitution. As parents the trustees paid fees in respect of their children. These fees are calculated in the same way as for other parents. No amounts were written off in respect of these fees due to non-payment or for any other reason.
## **15. COMMITMENTS**
At 31 March 2022 the company had commitments under non-cancellable operating leases as follows:
|Operating leases:
Within one year
Within two to five years|**2022**
**£**
**10,373**
**5,565**
**15,938**|_2021_
_£_
_11,540_
_15,939_|
|---|---|---|
|||_27,479_|
Page 18
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
## **_____________________________________________________________________________16. DETAILED EXPENDITURE IN YEAR**
|_Staff costs including training & welfare_
Salary costs
Staff pension
Staff Training & welfare
Recruitment
_Care and Education costs_
Food and Milk
Curriculum
Nappies
Books
Toys and Learning Materials
Travel and Outings
_Office costs_
Subscriptions
Telephone
Postage and stationery
Office equipment & software
Water
Web Design
Bank charges
Insurance
General expenses
_Professional fees_
Legal fees
Consulting
_Premises costs_
n costs
Repairs, renewals and maintenance
Cleaning
Heat and light
Water
Fundraising
Depreciation
Restricted Project Costs
_Support costs_
Management accounts
Staff admin costs
_Governance costs_||**2023**
**£**
**£**
**732,362**
**13,988**
**17,873**
**7,670**
**771,893**
**38,772**
**5,984**
**2,575**
**17,350**
**5,584**
**70,266**
**4,349**
**11,556**
**1,079**
**29,309**
**404**
**-**
**9.391**
**546**
**-**
**56,635**
**4,247**
**975**
**5,222**
**24,902**
**28,491**
**16,373**
**2,045**
**71,811**
**44**
**22,177**
**1,620**
**2,370**
**2,075**
**4,445**|_2022_
_£_
_£_
_825,844_
_15,650_
_16,739_
_1,567_
_859,800_
_35,426_
_6,764_
_-_
_45_
_17,974_
_3,349_
_63,558_
_3,856_
_9,787_
_1,881_
_20,232_
_404_
_-_
_5,139_
_539_
_-_
_41,838_
_922_
_672_
_10,401_
_25,366_
_11,559_
_1,542_
_49,541_
_143_
_27,519_
_0_
_4,438_
_2,995_
_7,433_|
|---|---|---|---|
|||||
|||||
|||||
|||||
|||||
Page 19
## **HIGHBURY COMMUNITY NURSERY**
## **(A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022**
|**________________________________________________**
Audit Fee
Independent Examination|**____________________**
**9,600**
**959**
**10,559**
**1,014,672**
|**_________**
_-_
_2,160_
_2,160_
**1,052,915**|**_________**
_-_
_2,160_|
|---|---|---|---|
||||_2,160_|
Page 20