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2024-03-31-accounts

REGISTERED COMPANY NUMBER: 02324172 (England and Wales) REGISTERED CHARITY NUMBER: 1020319

Report of the Trustees and

Audited Financial Statements for the Year Ended 31 March 2024

for

Highbury Community Nursery (A Company Limited by Guarantee)

Highbury Community Nursery

Contents of the Financial Statements for the Year Ended 31 March 2024

Page
Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 11
Statement of Financial Activities 12
Balance Sheet 13
Notes to the Financial Statements 14 to 23
Detailed Statement of Financial Activities 24 to 25

Highbury Community Nursery

Report of the Trustees

for the Year Ended 31 March 2024

The trustees are pleased to present their annual directors' report together with the financial statements of the charity for the year ending 31 March 2024 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.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of Highbury Community Nursery are:

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.

Page 1

Highbury Community Nursery

Report of the Trustees

for the Year Ended 31 March 2024

STRATEGIC REPORT

Achievement and performance

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 Discovery Center, Soft Play, local parks and the library 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. This year we have also begun donating to ARC foodbank where we take small groups of the older children once a month to make the donations and ask the families for support with this. The older children continue to participate in sports school and yoga sessions, wellbeing sessions; called 'peaceful kids' have been introduced to sunshine unit with great success. The phase 1 and 2 phonics sessions carried out by Katie our 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 Italian sessions carried out through fun songs and games.

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 and singing sessions which have been thoroughly enjoyed and we look forward to 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 Anne (Zoe's mummy) who came to play the piano for the children and sing some songs. We have enjoyed arts and crafts with Azadeh and Brendan (Sevin's parents) sharing their traditions of Persian New Year, a Christmas story from Jo (Jess's Mum). Shruti, Khush and Anjli (Aarya, Sukhi & Shayan's Mums) for Diwali arts and craft. Again, Anjli (Shayan's Mum) for making Samosa's and reading a story to celebrate Diwali.

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.

Page 2

Highbury Community Nursery

Report of the Trustees

for the Year Ended 31 March 2024

STRATEGIC REPORT

Achievement and performance

Achievements

The children are enjoying exploring their environment, and learning through planning in the moment.

We passed our food and Hygiene inspection retaining our 5 stars.

We passed our Islington categorization inspection receiving a green rating (on the traffic light system).

With the help of 2 ex nursery children, Urdur and Baldur we are excited to have a fantastic new welcome sign for the nursery which has received great reviews. We also have some internal door signs in production also designed by ex nursery children.

We have worked hard to retain our Millie's Mark award. All staff working with the children are Paediatric First Aid Trained and we have been busy training our new staff to the required level of paediatric first aid and updating all practitioner skills to ensure everyone has the required knowledge.

The family services including our baby massage and sign and learn courses, first aid sessions and parent/carer workshops have been very popular again this year with full classes.

We have revamped our garden this year introducing new and exciting areas which have been enjoyed by all of the children.

We have introduced our library located in our front garden, which has proved very popular with the children and created some nice opportunities for families to share stories together. Donations are always welcome.

Fundraising

Our two raffle events throughout the year have raised valuable funds which we used towards the garden revamp.

Parent/carer participation

Some parents have really supported the nursery in other ways apart from what's mentioned above, such as, Vincent (Marcel's Dad) with his DIY skills, Nigel (Jess's Dad) with his endless recycling runs-especially during our garden revamp. Parents have also supported the nursery in other ways such as Nadia (Rose's Mum) for her thoughtful contribution of fans for the rooms. John and Shruti (Aarya and Iyla's Parents) for bookkeeping support. And a mixture of parents attended a garden sweep on a Saturday to support us in keeping our garden tidy.

We would also like to thank Geir and the committee who have provided us with support throughout the year.

Page 3

Highbury Community Nursery

for the Year Ended 31 March 2024

Report of the Trustees

STRATEGIC REPORT

Financial review

Financial position

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 2022/23 we made a surplus of £31,989, however in 2023/24 we generated a deficit of £57,039 due to the increase in cost of living as well as our staffing costs being considerably higher compared the previous year. Unfortunately our admissions capacity was lower due to lack of staffing at certain times of the year therefore places could not be filled to its maximum.

Total expended resources increase by 4.8% compared to the prior year at £1,012,474

Staffing 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 minimum required levels of staffing through the year. Overall staff costs decreased this year by 0.11% to £745,511 (2022/2023; £76,350).

Total incoming resources (excluding bank interest received) increased by 16% compared to last year (2021/22 increased by 14%). 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 £178,440 in the year (2022/23 we received £166,962)

The depreciation policy of capitalized building works is considered to be prudent and is held in a designated fund of £211,757 (2022/23; £233,239).

Investment policy and objectives

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.

Reserves policy

In line with the Charities' Commission's recommendations for nurseries, the nursery maintained £596,106 of free reserves as at 31 March 2024. This amount exceeds nine months' average operating expenses.

Principal risks and uncertainties

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.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Page 4

Highbury Community Nursery

for the Year Ended 31 March 2024

Report of the Trustees

STRUCTURE, GOVERNANCE AND MANAGEMENT

Recruitment and appointment of new trustees

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.

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

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.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 02324172 (England and Wales)

Registered Charity number

1020319

Registered office

15 Aubert Park London N5 1TL

Page 5

Highbury Community Nursery

Report of the Trustees

for the Year Ended 31 March 2024

Trustees

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 January 2023 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 January 2023 Resigned April 2022

After the year-end, the following directors resigned:

----- Start of picture text -----
Tameka Small (Company Secretary)
Will Lockhart (Minute Taker)
Fiona Shaw (Parent Participation)
Khush Sinha (Fundraising)
----- End of picture text -----

Resigned November 2023 Resigned August 2023 Resigned August 2023 Resigned November 2023

After the year-end the following directors were appointed:

Tom Ferguson (Company Secretary) Appointed December 2023 Naomi Baster (Minute Taker) Appointed November 2023 Anji Raval (Parent Participation) Appointed November 2023 Claudia Headon (Fundraising) Appointed November 2023

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 Catherine Antink Vanisha Patel

Senior Leadership team, Admissions Senior Leadership team, Family Liaison Senior Leadership team, HR and Finance

Independent Auditor

Lorraine Curtis Nordens Audit Limited The Retreat 406 Roding Lane South Woodford Green Essex IG8 8EY

Page 6

Highbury Community Nursery

Report of the Trustees

for the Year Ended 31 March 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Bankers

CAF Bank Limited 25 Kings Hill Avenue Kings Hill, West Malling Kent ME19 4JQ

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Highbury Community Nursery for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

Nordens Audit Limited were appointed as auditors in the year and have indicated their willingness to continue in office. A resolution proposing their re-appointment will be submitted at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by: 28 March 2025

........................................................................ Trustee

Page 7

Report of the Independent Auditors to the Members of Highbury Community Nursery

Opinion

We have audited the financial statements of Highbury Community Nursery (the 'charitable company') for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 8

Report of the Independent Auditors to the Members of Highbury Community Nursery

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

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

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

Page 9

Report of the Independent Auditors to the Members of Highbury Community Nursery

Our responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that:

We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries with management and those responsible for legal and compliance frameworks. We corroborated our enquiries through review of correspondence with regulatory bodies and gaining an understanding of the entity level controls of the company in respect of these areas and the controls in place to reduce opportunity for fraudulent transactions.

We discussed among the audit engagement team including relevant internal tax specialists, regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. We also communicated the applicable laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates.

Procedures performed to address these were as follows:

Page 10

Report of the Independent Auditors to the Members of Highbury Community Nursery

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

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

Lorraine Curtis (Senior Statutory Auditor)

Date: .............................................28 March 2025

Page 11

Highbury Community Nursery

Statement of Financial Activities

for the Year Ended 31 March 2024

Notes
INCOME AND ENDOWMENTS
FROM
Donations and grants
2
Fees charged
3
Investment income
4
Total
EXPENDITURE ON
Charitable activities
5
Cost of charitable activities
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 Unrestricted
funds
£
38,419
823,042
7,151
868,612
905,655
(37,043)
419,594
382,551		 Restricted
fund
£
144,224
-
-
144,224
144,224
-
1,798
1,798		 Designated
Fund
£
-
-
-
-
19,996
(19,996)
231,753
211,757		 31.3.24
Total
funds
£
182,643
823,042
7,151
1,012,836
1,069,875
(57,039)
653,145
596,106		 31.3.23
Total
funds
£
204,859
840,054
1,748
1,046,661
1,014,672
31,989
621,156
653,145

The notes form part of these financial statements

Page 12

Highbury Community Nursery

Balance Sheet

31 March 2024

31.3.24 31.3.23
Unrestricted Restricted Designated Total Total
funds fund Fund funds funds
Notes £ £ £ £ £
FIXED ASSETS
Tangible assets 13 1,488 - 211,757 213,245 233,241
CURRENT ASSETS
Debtors 14 17,254 - - 17,254 11,136
Cash at bank and in hand 489,751 1,798 - 491,549 521,578
CREDITORS 507,005 1,798 - 508,803 532,714
Amounts falling due within one
year 15 (125,942) - - (125,942) (112,810)
NET CURRENT ASSETS 381,063 1,798 - 382,861 419,904
TOTAL ASSETS LESS CURRENT
LIABILITIES 382,551 1,798 211,757 596,106 653,145
NET ASSETS 382,551 1,798 211,757 596,106 653,145
FUNDS 17
Unrestricted funds 382,551 419,594
Restricted funds 1,798 1,798
Endowment funds 211,757 231,753
TOTAL FUNDS 596,106 653,145

The financial statements were approved by the Board of Trustees and authorised for issue on 28 March 2025 ............................................. and were signed on its behalf by:

............................................. Trustee

The notes form part of these financial statements

Page 13

Highbury Community Nursery

Notes to the Financial Statements

for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

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).

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

Critical accounting 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 re-assessed 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.

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.

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.

Page 14

Highbury Community Nursery

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES - continued

Income

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.

Expenditure

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:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

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.

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:

The rates used during the year were as follows:

Office Equipment 25% Straight Line

lower of the estimated useful life and the remaining terms of the Building Development works lease, no longer than 20 years

The lease on 15 Aubert Park runs to 2038.

Taxation

The charity is exempt from corporation tax on its charitable activities.

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.

Page 15

Highbury Community Nursery

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES - continued

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.

Employee benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

- 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.

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.

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.

2. DONATIONS AND GRANTS

Unrestricted
Restricted
Fund 2024
Fund 2024
Total 2024
Total 2023
£
£
£
£
Income from fundraising events
1,278
-
1,278
1,632
Donations
2,924
-
2,924
1,900
London Borough of Islington:
Main Grant
34,216
-
34,216
31,329
Nursery Education Grant over 3's
-
128,241
128,241
117,581
Rebate Grant
-
-
-
13,772
Other LBI Grants
-
9,115
11,206
21,562
SEN/Mentor Fee
-
5,582
3,392
12,582		 Unrestricted
Restricted
Fund 2024
Fund 2024
Total 2024
Total 2023
£
£
£
£
Income from fundraising events
1,278
-
1,278
1,632
Donations
2,924
-
2,924
1,900
London Borough of Islington:
Main Grant
34,216
-
34,216
31,329
Nursery Education Grant over 3's
-
128,241
128,241
117,581
Rebate Grant
-
-
-
13,772
Other LBI Grants
-
9,115
11,206
21,562
SEN/Mentor Fee
-
5,582
3,392
12,582		 Unrestricted
Restricted
Fund 2024
Fund 2024
Total 2024
Total 2023
£
£
£
£
Income from fundraising events
1,278
-
1,278
1,632
Donations
2,924
-
2,924
1,900
London Borough of Islington:
Main Grant
34,216
-
34,216
31,329
Nursery Education Grant over 3's
-
128,241
128,241
117,581
Rebate Grant
-
-
-
13,772
Other LBI Grants
-
9,115
11,206
21,562
SEN/Mentor Fee
-
5,582
3,392
12,582		 Unrestricted
Restricted
Fund 2024
Fund 2024
Total 2024
Total 2023
£
£
£
£
Income from fundraising events
1,278
-
1,278
1,632
Donations
2,924
-
2,924
1,900
London Borough of Islington:
Main Grant
34,216
-
34,216
31,329
Nursery Education Grant over 3's
-
128,241
128,241
117,581
Rebate Grant
-
-
-
13,772
Other LBI Grants
-
9,115
11,206
21,562
SEN/Mentor Fee
-
5,582
3,392
12,582		 Unrestricted
Restricted
Fund 2024
Fund 2024
Total 2024
Total 2023
£
£
£
£
Income from fundraising events
1,278
-
1,278
1,632
Donations
2,924
-
2,924
1,900
London Borough of Islington:
Main Grant
34,216
-
34,216
31,329
Nursery Education Grant over 3's
-
128,241
128,241
117,581
Rebate Grant
-
-
-
13,772
Other LBI Grants
-
9,115
11,206
21,562
SEN/Mentor Fee
-
5,582
3,392
12,582
University of Greenwich - - - 4,500
38,419
144,224
182,643
204,859

In 2024, all income from fundraising was attributable to the general fund.

Page 16

Highbury Community Nursery

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

3. FEES CHARGED

Fees charged
4.
INVESTMENT INCOME
Investment income
5.
CHARITABLE ACTIVITIES COSTS
Cost of charitable activities
6.
SUPPORT COSTS
Management
£
Cost of charitable activities
166,090
7.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Audit
Depreciation - owned assets		 Direct
Costs
£
844,216
Finance
£
37,370		 31.3.24
£
823,042
31.3.24
£
7,151
Support
costs (see
note 6)
£
225,659
Governance
costs
£
22,199
31.3.24
£
11,520
19,996		 31.3.23
£
840,054
31.3.23
£
1,748
Totals
£
1,069,875
Totals
£
225,659
31.3.23
£
11,520
22,174

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no employees with emoluments above £60,000 (2023: 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 £156,651 (2023: £156,651).

The charity trustees were not paid, did not received any other benefits from employment nor payment of expenses from the charity in the year (2023: £nil).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023.

Page 17

Highbury Community Nursery

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

9. STAFF COSTS

Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Average number of staff		 31.3.24
£
732,993
13,266
746,259
31.3.24
30		 31.3.23
£
732,362
13,988
746,350
31.3.23
31

No employees received emoluments in excess of £60,000.

10. MATERIAL TRANSFERS

A transfer of £20,692 (2023: £20,692) 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.

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and grants
Fees charged
Investment income
Total
EXPENDITURE ON
Charitable activities
Cost of charitable activities
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
123,713
840,054
1,748
965,515
911,828
53,687
365,907
419,594		 Restricted
fund
£
81,146
-
-
81,146
80,666
480
1,318
1,798		 Designated
Fund
£
-
-
-
-
22,178
(22,178)
253,931
231,753		 Total
funds
£
204,859
840,054
1,748
1,046,661
1,014,672
31,989
621,156
653,145

Page 18

Highbury Community Nursery

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

12. 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.

13. TANGIBLE FIXED ASSETS

COST
At 1 April 2023 and 31 March 2024
DEPRECIATION
At 1 April 2023
Charge for year
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023
14.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Nursery fees
Other debtors
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Parents deposits
Trade creditors
Social security and other taxes
Fees paid in advance
Accrued expenses		 Plant and
machinery
£
931,214
705,273
15,819
721,092
210,122
225,941		 Fixtures
and
fittings
Totals
£
£
95,754
1,026,968
88,454
793,727
4,177
19,996
92,631
813,723
3,123
213,245
7,300
233,241
31.3.24
31.3.23
£
£
12,100
9,761
5,154
1,375
17,254
11,136
31.3.24
31.3.23
£
£
69,905
83,330
29,921
495
14,596
11,157
-
5,523
11,520
12,305
125,942
112,810

Page 19

Highbury Community Nursery

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
17.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Restricted
Endowment funds
Designated Fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Restricted
Endowment funds
Designated Fund
TOTAL FUNDS		 At 1.4.23
£
419,594
1,798
231,753
653,145
Incoming
resources
£
868,612
144,224
-
1,012,836		 31.3.24
£
-
Net
movement
in funds
£
(37,043)
-
(19,996)
(57,039)
Resources
expended
£
(905,655)
(144,224)
(19,996)
(1,069,875)		 31.3.23
£
5,565
At
31.3.24
£
382,551
1,798
211,757
596,106
Movement
in funds
£
(37,043)
-
(19,996)
(57,039)

Page 20

Highbury Community Nursery

Notes to the Financial Statements - continued for the Year Ended 31 March 2024

17. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Restricted funds
Restricted
Endowment funds
Designated Fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are
Unrestricted funds
General fund
Restricted funds
Restricted
Endowment funds
Designated Fund
TOTAL FUNDS		 At 1.4.22
£
365,907
1,318
253,931
621,156
as follows:
Incoming
resources
£
965,515
81,146
-
1,046,661		 Net
movement
in funds
£
53,687
480
(22,178)
31,989
Resources
expended
£
(911,828)
(80,666)
(22,178)
(1,014,672)		 At
31.3.23
£
419,594
1,798
231,753
653,145
Movement
in funds
£
53,687
480
(22,178)
31,989

Page 21

Highbury Community Nursery

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

17. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Restricted funds
Restricted
Endowment funds
Designated Fund
TOTAL FUNDS		 Net
movement
At 1.4.22
in funds
£
£
365,907
16,644
1,318
480
253,931
(42,174)
621,156
(25,050)		 At
31.3.24
£
382,551
1,798
211,757
596,106

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Restricted
Endowment funds
Designated Fund
TOTAL FUNDS		 Incoming
resources
£
1,834,127
225,370
-
2,059,497		 Resources
expended
£
(1,817,483)
(224,890)
(42,174)
(2,084,547)		 Movement
in funds
£
16,644
480
(42,174)
(25,050)

Name of restricted fund Description, nature and purposes of the fund London Borough of Islington

Finance received for all subsidised children in the setting, providing for Main Grant their care and education

Reimbursements received for siblings and disabled children and all Rebate Grant 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

Page 22

Highbury Community Nursery

Notes to the Financial Statements - continued

for the Year Ended 31 March 2024

18. RELATED PARTY DISCLOSURES

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.

Page 23

Highbury Community Nursery

Detailed Statement of Financial Activities for the Year Ended 31 March 2024

INCOME AND ENDOWMENTS
Donations and grants
Gifts
Donations
Fundraising
Grants
Fees charged
Fees charged
Investment income
Investment income
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Pensions
Fundraising
Recruitment
Food and Milk
Curriculum
Nappies
Toys and Learning Materials
Travel and Outings
Staff training & welfare
Restricted project costs
Support costs
Management
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Cleaning
Subscriptions
Office equipment and software
Repairs & maintenance
Carried forward		 31.3.24
£
-
2,924
1,279
178,440
182,643
823,042
7,151
1,012,836
732,993
13,266
129
11,073
30,292
6,570
5,355
14,501
6,021
24,016
-
844,216
8,486
572
14,229
12,791
13,660
24,282
2,392
27,762
30,975
135,149		 31.3.23
£
1
1,900
1,632
201,326
204,859
840,054
1,748
1,046,661
732,362
13,988
44
7,670
38,772
5,984
2,575
17,350
5,584
17,873
1,620
843,822
2,449
546
16,373
11,556
1,079
28,492
4,349
29,309
24,902
119,055

This page does not form part of the statutory financial statements

Page 24

Highbury Community Nursery

Detailed Statement of Financial Activities

for the Year Ended 31 March 2024

Management
Brought forward
Legal Fees
Consulting
Depreciation of tangible asset s
Finance
Sundries
Bank charges
Governance costs
Auditors' remuneration
Payroll and accounting services
Total resources expended
Net (expenditure)/income		 31.3.24
£
135,149
3,698
7,247
19,996
166,090
28,536
8,834
37,370
11,520
10,679
22,199
1,069,875
(57,039)		 31.3.23
£
119,055
719
4,503
22,178
146,455
-
9,391
9,391
11,520
3,484
15,004
1,014,672
31,989

This page does not form part of the statutory financial statements

Page 25