**Charity Registration No. 1024544** **Company Registration No. 2826849 (England and Wales)** ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2021** **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Trustees** L J Curd H L Dixon E J Fothergill P Gallimore J Rehman L E Richards R A Massey B Naylor N M Bamford J L Gibling J Clarke **Secretary** J M Holland **Charity number** 1024544 **Company number** 2826849 **Registered office** St Marks Road Derby Derbyshire DE21 6AH **Auditor** Azets Audit Services Ruthlyn House 90 Lincoln Road Peterborough United Kingdom PE1 2SP **Bankers** Co-op Bank plc 31 East Street Derby DE1 2AL (Appointed 28 April 2021) (Appointed 8 October 2021) (Appointed 13 October 2021) (Appointed 27 October 2021) **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **CONTENTS** ||**Page**| |---|---| |Chairman's statement|1| |Trustees' report|2 - 6| |Statement of trustees' responsibilities|7| |Independent auditor's report|8 - 11| |Statement of financial activities|12 - 13| |Balance sheet|14 - 15| |Statement of cash flows|16| |Notes to the financial statements|17 - 29| **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **CHAIRMAN'S STATEMENT** _**FOR THE YEAR ENDED 31 MARCH 2021**_ This was a challenging year, although not as challenging as the current year has turned out to be. There are longstanding issues about funding rates for the 'free' early education entitlement, with National Living Wage and National Minimum Wage increasing significantly more than funding rates. In April 2019 NLW and NMW rose by 6.2% and 6.5% respectively. Funding for two year olds increased by 1.5% and for 3 & 4 year olds by 3.5%. This pattern has been repeated over the past several years, putting pressure on many providers. We are grateful to our local MP, Amanda Sollaway, for meeting with us and advocating for us at local and national government level. Occupancy levels were much lower than expected, particularly in the autumn term. This led us to look at occupancy patterns, finding that our fully flexible approach was impeding us from maximising our operating capacity, or rationalising the workforce. A new delivery model was designed and was due to be introduced in Summer 2020, however from 23rd March we were closed to all but vulnerable children and the children of key workers. We are proud of our staff team and their dedication to continuing professional development. There were a range of opportunities available this year and staff took full advantage. Congratulations to all who achieved new qualifications and skills this year. We are very pleased to see real progress being made in improving children's speech, language and communication skills. We have been able to demonstrate that the interventions we have put in place have been effective. Being able to communicate effectively is perhaps the most important of all life skills and effective early intervention makes a long-term improvement to children's life chances. Planning for the future is incredibly difficult whilst the pandemic continues. Our immediate focus is on being able to continue to provide a consistent quality early education in a COVID-19 secure way. **E J Fothergill** Chairman Dated: 18 November 2021 - 1 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ The trustees present their report and financial statements for the year ended 31 March 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". ## **Objectives and activities** The charity's objects are : - to advance the education of children and to provide recreational facilities for them in the interests of social welfare; - to provide education and vocational training for all members of the community in the educational and other needs of children and in teaching the care of children; - to aid, help, protect and care for children who are in need of such assistance. ## **Main objectives for 2020/21:** The objective for the year, prior to the pandemic, had been to re-design our offer to enable us to maximise income from the resources we have. As the pandemic took hold and the country was put into lockdown, the objective was to safely deliver care to keyworker and vulnerable children, and eventually all children. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Volunteers** We continue to be supported by our two dedicated ‘handymen’ who help keep the building and grounds in order. Links with local businesses are bringing new volunteers to all areas of the organisation, some for oneoff projects, others are ongoing. ## **Achievements and performance** In the early months of the pandemic, there was a great deal of uncertainty about many things, and guidance changed extremely frequently. One of the first issues when education settings were closed, was the definition of ‘key workers’. The first list was published just before settings closed but was revised just days later once lockdown had been announced. Among other things that changed during that period was the list of official covid-19 symptoms, self-isolation periods, the use of ‘bubbles’ within settings, the wearing of face coverings and the children eligible to attend settings. A great deal of management time was spent keeping up with all of the changes, assessing the impact on the setting, updating the risk assessment, adapting practice, and communicating changes to all staff and parents. As the pandemic continued and settings were required to open for all children, a major issue was planning for expected occupancy, a challenge at the best of times. The country went through a period of easing restrictions, with retail and hospitality re-opening, schools re-opening and a second wave of the pandemic leading to tiers, regional restrictions, and another lockdown. Parents’ need for childcare was altered depending on whether they or their children were shielding, they were working from home, home schooling older children, losing their jobs, being partially or fully furloughed or had lost access to informal childcare. They often did not know what was happening from one week to the next which meant that planning for future terms was extremely difficult. - 2 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ More immediately disruptive was the requirement to self-isolate. Anyone experiencing symptoms of covid-19, living in the household of someone experiencing symptoms or close contacts of anyone who tested positive, were required to self-isolate. In cases where staff were required to isolate, the need to maintain ‘bubbles’ and not mix groups of staff and children led to difficulties in providing services, with us having to turn some children away from nursery on a few occasions. At the beginning of March 2020, we were caring for 124 children at our St Marks R oa d setting. During the first week of lockdown 23 children attended. Occupancy gradually increased over the summer, but at the end of the financial year remained at approximately 66% of pre-pandemic occupancy. This is in line with national occupancy in early years settings as reported by the Department for Education. ## **Financial review** The results for the year are as detailed on page 12 to the financial statements. ## **Principal funding sources** As would be expected there was an immediate sharp decline in income from fee-paying parents at the start of the pandemic. Government funded childcare was the principal source of funding during the year. For the summer and autumn terms, funding was given for occupancy levels that would have been expected if it were not for the pandemic. In spring 2021, funding was based on actual occupancy, which was much lower than pre-pandemic levels. ## **Investment powers, policy and performance** The trustees’ investment powers are governed by the Memorandum and Articles of Association, which permits the charity’s funds to be invested in, or on such investments, securities or property as may be thought fit. ## **Going concern and reserves policy** At the date of approving the accounts, the directors have reviewed the current management information available and forecasts for the coming 12 months. As a result of this, the directors have a reasonable expectation that the charity will continue in operational existence for the foreseeable future. Therefore the Trustees consider it appropriate to continue to adopt the going concern basis in preparing the financial statements. At the year end total funds held by the charity amounted to £1,925,744 of which designated funds amounted to £1,935,210 leaving a deficit on general reserves of £(9,466). It is the objective of the organisation to achieve and maintain free reserves of at least 3 months core operating costs which currently equates to £260,000 and the Trustees acknowledge that steps are required to bring free reserves back in line with this objective. Over the past 12 months the organisation has looked closely at costs, making savings where possible and is making every effort to increase numbers and, as a result, revenue, using a variety of marketing activities. This is an ongoing process and the short term target is to return the charity to a trading surplus in the current year overall, with a medium term aim of achieving the free reserves target. The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. - 3 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Plans for future periods** There continues to be uncertainty about the level of demand for childcare, with occupancy numbers in early years lower than pre-pandemic levels across the country. The pandemic has changed working patterns for many sectors, with people continuing to work from home, or moving to a more hybrid way of working. Childcare is a significant family expense which parents will seek to minimise where they can. There is also still some question as to whether people are reluctant to take up early education because of coronavirus anxiety. Our marketing activity will focus on the importance of early education in improving children’s life chances, our record of safe working during the pandemic, and the support with childcare costs available to working parents. A key issue in early years, particularly in the PVI sector, is difficulty recruiting suitable staff. In the past, we have developed our team through the use of traineeships and apprenticeships. Whilst restrictions on social contacts were in place it was not possible to recruit new candidates so we have not had new staff coming through. This affects our costs as our workforce planning is based on having a mixture of qualified and unqualified staff: without that mixture costs are higher. We will be creating traineeship places at all sites throughout the year in the hope these can be converted to apprenticeships. Our partnerships with schools have changed. Brackensdale School became an academy in April 2021 and the academy trust which has taken over does not work with 3 rd party providers. The previous agreement had come to an end and discussions took place about the future of the partnership. We have decided to work together for a further year to explore how the relationship might develop. The setting was refurbished and relaunched and we look forward to continuing our work in Mackworth. After similar discussions with the trust which manages Breadsall Hill Top School we mutually agreed to end the partnership. Staff and children who had been attending the setting were able to move to St Marks Rd. We will continue to lobby for fair funding for the sector, particularly for funding for ‘free’ entitlements and for children with additional needs. ## **Structure, governance and management** Derwent Stepping Stones Nursery and Community Training Centre is based at St Mark’s Road, Derby, which is the company’s Registered Office and principal address of the charity. Derwent Stepping Stones Nursery and Community Training Centre is a company limited by guarantee and not having a share capital (Company Registration No. 2826849) and Registered Charity (No. 1024544). The charity’s governing document is the Memorandum and Articles of Association. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: L J Curd H L Dixon E J Fothergill P Gallimore J Rehman L E Richards R A Massey L M Massey B Naylor N M Bamford J L Gibling J Clarke (Appointed 28 April 2021 and resigned 1 October 2021) (Appointed 28 April 2021) (Appointed 8 October 2021) (Appointed 13 October 2021) (Appointed 27 October 2021) - 4 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Appointment of trustees** Trustees are appointed by the Management Board either to fill a casual vacancy or by way of addition to the Management Board, provided that the prescribed maximum is not thereby exceeded. In considering prospective trustees, the Management Board has regard to the requirement for a balance of specialist skills necessary for the effective management of the charity. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. ## **Induction and training of trustees** Prospective trustees are invited to meet with the Chief Executive and Trustees and are given information about the organisation, its activities, aims and objectives and a role description prior to submitting an interest form. Once an individual has been elected to the Management Board they are given a welcome pack including, but not limited to, the Memorandum and Articles, business plan, annual report and latest published accounts. This pack forms the basis for the induction process. Trustees are invited to attend training sessions, workshops and celebrations in order to maintain an understanding of the organisation and to meet with staff members. Reports and guidance from organisations such as the Charity Commission and NCVO are regularly circulated and discussed at Trustees Meetings. ## **Organisational structure** The business of the charity is managed by the Management Board which consists of a maximum of twelve and a minimum of three trustees. Board members so appointed hold office until the following AGM, when they become eligible for re-election. Trustees are appointed by a simple majority of trustees. The operational management of the organisation is delegated to the Chief Executive. The Chief Executive works closely with the Trustees on the strategic direction and policy of the organisation. ## **Related parties** In so far as it is complimentary to the charity’s objects, the organisation is guided both by local and national policy. Managers of the organisation sit on relevant local steering groups to ensure that the organisation is aware of local initiatives and activity. ## **Pay policy for key management personnel** The trustees consider the Management Board, the Chief Executive and the Finance & HR Manager as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in notes 9 and 20 respectively to the accounts. Trustees are required to disclose all relevant interests and withdraw from decisions where a conflict of interest arises. It is policy to review the pay of the charity’s Chief Executive and Finance & HR Manager annually, benchmarking with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles. Pay rates for the senior staff have not increased for several years due to the difficult financial situation. - 5 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **Risk management** The Trustees, along with key management personnel, have conducted a review of the risks to which the organisation is exposed. A risk register has been established and, where appropriate, control systems introduced in order to mitigate the risks. All policies, procedures and risk assessments are reviewed at least annually. ## **Fundraising policy statement** The charity carries out minor fundraising activities throughout the year. These consist of events such as summer and Christmas fairs which are organised and run voluntarily by staff members and trustees. Events are open to any member of the public and there are no entrance fees. Money is raised through raffles, tombola’s and games. The events are regarded as opportunities to publicise our services to potential new customers and free activities such as face painting and refreshments ensure that no-one has to spend money to be included. ## **Auditor** In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting. The trustees' r eport was approved by the Board of Trustees. **E J Fothergill** Chair Dated: 18 November 2021 **L E Richards** Treasurer Dated:6 December 2021 - 6 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 MARCH 2021**_ The trustees, who are also the directors of Derwent Stepping Stones Nursery and Community Training Centre for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these 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; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 7 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **INDEPENDENT AUDITOR'S REPORT** ## **TO THE TRUSTEES OF DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **Opinion** We have audited the financial statements of Derwent Stepping Stones Nursery and Community Training Centre (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice) . In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity 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 charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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. - 8 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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. ## **Auditor's responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 an auditor's report 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. A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 9 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **Extent to which the audit was considered capable of detecting irregularities, including fraud** Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud. We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: - Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; - Reviewing minutes of meetings of those charged with governance; - Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; - Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 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 noncompliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - 10 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **Use of our report** This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. **Mr Mark Jackson FCA DChA (Senior Statutory Auditor) for and on behalf of Azets Audit Services** 6 December 2021 **Chartered Accountants Statutory Auditor** Ruthlyn House 90 Lincoln Road Peterborough United Kingdom PE1 2SP Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006. - 11 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**Current financial year**
**Unrestricted Designated**
**Restricted**
**funds**
**funds**
**funds**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations and legacies
**3**
204,280
-
-
Charitable activities
**4**
775,883
-
-
Other trading activities
**5**
3,926
-
-
**Total income**
984,089
-
-
**Expenditure on:**
Raising funds
**6**
2,007
-
-
Charitable activities
**7**
889,709
-
59,721
**Total resources expended**
891,716
-
59,721
**Net incoming/(outgoing) resources**
**before transfers**
92,373
-
(59,721)
**Net incoming/(outgoing) resources**
**before transfers**
92,373
-
(59,721)
Gross transfers between funds
(50,000)
1,935,210
(1,885,210)
**Net income/(expenditure) for the year/**
**Net movement in funds**
42,373
1,935,210
(1,944,931)
Fund balances at 1 April 2020
(51,839)
-
1,944,931
**Fund balances at 31 March 2021**
(9,466)
1,935,210
-|**Total**
**2021**
**£**
204,280
775,883
3,926
984,089
2,007
949,430
951,437
32,652
32,652
-
32,652
1,893,092
1,925,744|Total
2020
**£**
-
940,747
10,645
951,392
2,464
1,101,705
1,104,169
(152,777)
(152,777)
-
(152,777)
2,045,869
1,893,092| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 12 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**Prior financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Charitable activities
**4**
940,747
-
Other trading activities
**5**
10,645
-
**Total income**
951,392
-
**Expenditure on:**
Raising funds
**6**
2,464
-
Charitable activities
**7**
1,042,592
59,113
**Total resources expended**
1,045,056
59,113
**Net incoming/(outgoing) resources before transfers**
(93,664)
(59,113)
Gross transfers between funds
(6,616)
6,616
**Net income/(expenditure) for the year/**
**Net movement in funds**
(100,280)
(52,497)
Fund balances at 1 April 2019
48,441
1,997,428
**Fund balances at 31 March 2020**
(51,839)
1,944,931|**Total**
**2020**
**£**
940,747
10,645
951,392
2,464
1,101,705
1,104,169
(152,777)
-
(152,777)
2,045,869
1,893,092| |---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 13 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **BALANCE SHEET** ## _**AS AT 31 MARCH 2021**_ |**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**14**
Net current assets/(liabilities)
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**15**
**Net assets**
**Income funds**
Restricted funds
**16**
Designated funds
Unrestricted funds|**2021**
**£**
**£**
1,962,359
39,495
100,807
140,302
(83,584)
56,718
2,019,077
(93,333)
1,925,744
-
1,935,210
(9,466)
1,925,744|**2020**
**£**
**£**
2,025,385
20,951
13,891
34,842
(76,593)
(41,751)
1,983,634
(90,542)
1,893,092
1,944,931
-
(51,839)
1,893,092| |---|---|---| - 14 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **BALANCE SHEET (CONTINUED)** ## _**AS AT 31 MARCH 2021**_ The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021, although an audit has been carried out under section 144 of the Charities Act 2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 6 December 2021 E J Fothergill L E Richards **Chair Treasurer Company Registration No. 2826849** - 15 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**Notes**
**Cash flows from operating activities**
Cash generated from/(absorbed by)
operations
**21**
**Investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Financing activities**
Repayment of bank loans
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
-
(2,008)|**£**
88,924
-
(2,008)
86,916
13,891
100,807|**2020**
**£**
**£**
(87,187)
(22,494)
(22,494)
(6,616)
(6,616)
(116,297)
130,188
13,891| |---|---|---|---| - 16 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** ## **Charity information** Derwent Stepping Stones Nursery and Community Training Centre is a private company limited by guarantee incorporated in England and Wales. The registered office is St Marks Road, Derby, Derbyshire, DE21 6AH. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **1.2 Going concern** The trustees acknowledge that sustainability is an issue following the effects of the pandemic and they are closely monitoring the financial situation. They have forecast cashflow for the subsequent twelve-month period based on known factors and historical trends. They have conducted a detailed review of overhead costs and indirect staffing with the aim of minimising costs and maximising efficiencies. Direct staffing and supply of sessions is being closely managed to ensure that child:adult ratios and income are maximised. They have taken, and will continue to take, advantage of local and national grant support related to the effects of coronavirus. Cashflow is monitored on a weekly basis by management and the finance committee meet monthly, or as often as is deemed necessary. At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements . ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. When the charity part funds a restricted project transfers are made from unrestricted funds to the particular restricted fund. Where restricted projects cease the trustees decide whether any fund balance can be transferred to unrestricted reserves. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Nursery fee income is recognised on the basis of child attendance. Training income is recognised when the service has been performed. Room hire is recognised on an accruals basis. - 17 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** ## **(Continued)** Tutoring costs given in kind are valued at commercial rates and included as unrestricted income. ## **Grants** Grants are included in full in the income and expenditure account as soon as they become receivable. Grants that are received specifically for use in a future period are deferred. ## **Investment income** Bank interest is included in the income and expenditure account on an accruals basis. ## **1.5 Expenditure** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to the category. Where costs cannot be directly allocated to particular headings they have been allocated to activities on a basis consistent with the use of resources. Governance costs are those incurred in connection with the charity's compliance with constitutional and statutory requirements. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Buildings 2% straight line Fixtures and fittings 5% to 15% reducing balance Office equipment 33% reducing balance The Charity holds property at St Marks Road, Derby which was built on land owned by Derby City Council and leased to the Charity on a peppercorn basis. The lease was entered into in 2005 and was a 21 year term, expiring in 2026. The Trustees have however adopted a policy to depreciate this leasehold property over a 50 year term, notwithstanding that this period will extend beyond the end of the lease term. This depreciation period is adopted on the basis that the Trustees are advised that the occupation of the property is protected under the provisions of the 1954 Landlord and Tenants Act and the charity has the right to hold over and continue to occupy the property on similar terms. The building was built specifically for the purposes of the Charity and the Trustees therefore consider that a 50 year depreciation period is appropriate. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . - 18 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **1 Accounting policies** **(Continued)** ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.9 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled. ## **1.10 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.11 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. - 19 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Donations and legacies** |**Unrestricted**
**funds**
**2021**
**£**
Donations and gifts
62,500
Coronavirus Job Retention Scheme
141,780
204,280|Total
2020
£
-
-
-| |---|---| ## **4 Charitable activities** |||**Unrestricted**|
Unrestricted| |---|---|---|---| |||**funds**|
funds| |||**2021**|
2020| |||**£**|
£| ||Local authority grants|640,670|
680,335| ||Nursery fees and training|135,213|
260,412| |||775,883|
940,747| |**5**|**Other trading activities**||| |||**2021**|2020| |||**£**|£| ||Trading activity income: other|3,926|10,645| - 20 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **6 Raising funds** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2021**|2020| ||**£**|£| |Staff costs|1,561|1,550| |Other costs|446|914| ||2,007|2,464| |**Charitable activities**||| ||**2021**|
**2020**| ||**£**|
**£**| |Staff costs|593,811|
685,230| |Depreciation and impairment|63,026|
61,788| |Crèche, food, trips and other costs|11,152|
20,987| |Motor and travelling|236|
1,837| |Training and exam costs|1,602|
3,058| |Printing, stationery, telephone and advertising|5,301|
4,088| |Professional fees|1,585|
1,475| |Equipment repairs and maintenance|20,190|
38,528| |Recruitment costs|349|
289| ||697,252|
817,280| |Share of support costs (see note 8)|237,918|
270,725| |Share of governance costs (see note 8)|14,260|
13,700| ||949,430|
1,101,705| |**Analysis by fund**||| |Unrestricted funds|889,709|
1,042,592| |Restricted funds|59,721|
59,113| ||949,430|
1,101,705| ## **7 Charitable activities** - 21 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**8**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
146,366
10,000
Rent, rates and
insurance
41,149
-
Heat and light
14,816
-
Office running costs
11,960
-
Bank charges
1,505
-
Repairs and
maintenance
19,944
-
Loan interest
2,172
-
Bad debt expense
6
-
Staff training and
recruitment
-
-
Audit fees
-
4,260
237,918
14,260
Analysed between
Charitable activities
237,918
14,260|**2021**
**£**
156,366
41,149
14,816
11,960
1,505
19,944
2,172
6
-
4,260
252,178
252,178|Support
costs
Governance
costs
£
£
158,204
9,500
49,156
-
12,613
-
16,848
-
2,034
-
17,520
-
5,885
-
7,957
-
508
-
-
4,200
270,725
13,700
270,725
13,700|2020
£
167,704
49,156
12,613
16,848
2,034
17,520
5,885
7,957
508
4,200
284,425
284,425| |---|---|---|---| Governance costs includes payments to the auditors of £ 4,260 (2020 - £ 4,200 ) for audit fees. ## **9 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. The key management personnel of the charity comprises the Chief Executive Officer and finance director. The total amount of employee benefits received by key management personnel were £99,905 (2020: £98,830). - 22 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **10 Employees** The average monthly number of employees during the year was: |Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2021**
**Number**
52
1
53
**2021**
**£**
705,701
32,292
13,745
751,738|**2020**
**Number**
61
1
62
**2020**
**£**
804,751
34,979
14,754
854,484| |---|---|---| There were no employees whose annual remuneration was £60,000 or more. ## **11 Tangible fixed assets** |**Cost**
At 1 April 2020
Disposals
At 31 March 2021
**Depreciation and impairment**
At 1 April 2020
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2021
**Carrying amount**
At 31 March 2021
At 31 March 2020|**Buildings**
**Fixtures and**
**fittings**
**£**
**£**
2,830,434
91,914
-
(32,053)
2,830,434
59,861
841,752
61,270
56,609
4,688
-
(32,053)
898,361
33,905
1,932,073
25,956
1,988,682
30,644|**Office**
**equipment**
**£**
45,815
(27,681)
18,134
39,756
1,729
(27,681)
13,804
4,330
6,059|**Total**
**£**
2,968,163
(59,734)
2,908,429
942,778
63,026
(59,734)
946,070
1,962,359
2,025,385| |---|---|---|---| - 23 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**12**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**13**
**Loans and overdrafts**
Bank loans
Payable within one year
Payable after one year|**2021**
**£**
9,901
2,345
27,249
39,495
**2021**
**£**
50,000
6,667
43,333|**2020**
**£**
4,243
3,793
12,915
20,951
**2020**
**£**
52,008
11,466
40,542| |---|---|---| The charity has a bank loan comprising a 2.5% fixed rate loan totalling £50,000 repayable by equal instalments by June 2026, following a 12 month capital repayment holiday. ## **14 Creditors: amounts falling due within one year** |**Notes**
Bank loans
**13**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2021**
**£**
6,667
16,030
4,811
13,973
42,103
83,584|**2020**
**£**
11,466
7,186
6,694
23,664
27,583
76,593| |---|---|---| **15 Creditors: amounts falling due after more than one year** |**Notes**
Bank loans
**13**
Trustee loan|**2021**
**£**
43,333
50,000
93,333|**2020**
**£**
40,542
50,000
90,542| |---|---|---| The trustee loan of £50,000 is unsecured and has no fixed repayment terms. The trustee has confirmed that she will not request payment of the loan within 12 months of the date of approval of the accounts. - 24 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **16 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: |Main project
Other
projects
Early years -
Outdoor
capital
Early years -
Co-op
Awards for all|**Balance at**
**1 April 2019**
**£**
1,981,158
783
11,225
1,597
2,665
1,997,428|**Resources**
**expended**
**£**
(56,609)
(117)
(622)
(376)
(1,389)
(59,113)|**Transfers**
**£**
6,616
-
-
-
-
6,616|**Balance at**
**1 April 2020**
**£**
1,931,165
666
10,603
1,221
1,276
1,944,931|**Resources**
**expended**
**Transfers**
**31**
**£**
**£**
(56,609) (1,874,556)
(100)
(566)
(1,484)
(9,119)
(252)
(969)
(1,276)
-
(59,721) (1,885,210)|**Balance at**
**March 2021**
**£**
-
-
-
-
-
-| |---|---|---|---|---|---|---| ## **Funds commentary:** The New Build Project is a capital build project funded by New Deal for Communities, European Regional Development Fund, Derby and Derbyshire Economic Partnership, Derby City Council Children’s Centres and Futurebuilders England. New premises, designed in consultation with the community, have been built on the original site of the organisation. The building was completed on 18 February 2007, and opened for operations on 20 February 2007. Early Years Outdoor Capital is part of a Derby City Council Early Years initiative to develop outdoor play spaces to support the implementation of the Early Years Foundation Stage. Extensive work was carried out in the gardens including replacing grassed areas with soft play tarmac and redesign to create free flow play areas. Co-op is a grant from Central England Co-op to install wi-fi at the St Marks Road setting. Awards for All is a grant from the National Lottery to pilot a project to work with funded two-year olds around communication and language. ## **Transfers** The £50,000 transfer from General funds to the Main Project fund represents movement in the year on long term liabilities against this project. During the year the trustees have reviewed the funds and no longer believe that there are any ongoing restrictions in respect of the funds represented by fixed assets and they have therefore been transferred to designated funds. - 25 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **17 Designated funds** The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: |**Movement**
**in funds**
**Incoming**
**resources**
**£**
Fixed asset fund
-
-|**Balance at**
**1 April 2020**
**£**
-
-|**Transfers**
**31**
**£**
1,935,210
1,935,210|**Balance at**
**March 2021**
**£**
1,935,210
1,935,210| |---|---|---|---| - 26 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |**18**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Fund balances at 31 March 2021 are represented by:
Tangible assets
27,149
1,935,210
-
Current assets/(liabilities)
56,718
-
-
Long term liabilities
(93,333)
-
-
(9,466)
1,935,210
-|**Total**Unrestricted
funds
**2021**
2020
**£**
£
1,962,359
35,062
56,718
(36,901)
(93,333)
(50,000)
1,925,744
(51,839)|Restricted
funds
2020
£
1,990,323
(4,850)
(40,542)
1,944,931|Total
2020
£
2,025,385
(41,751)
(90,542)
1,893,092| |---|---|---|---| - 27 - **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ ## **19 Operating lease commitments** ## **Lessee** At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years|**2021**
**£**
24,114
22,356
46,470|**2020**
**£**
30,114
46,470
76,584| |---|---|---| ## **20 Related party transactions** During the year E Fothergill, a Trustee, made a donation of £50,000 (2020: £nil) to the charity. Included within creditors is a loan of £50,000 (2020: £50,000) due to E Fothergill, a Trustee. Interest on the loan of £10,625 (2020: £9,125) is included within accruals. During the year interest charged to the Statement of Financial Activities amounted to £1,500 (2020: £1,500). The loan is unsecured and was due to be repaid in 12 equal instalments from July 2014 but the Trustee has delayed repayment for the foreseeable future. The total amount due to E Fothergill at the year end was £60,625 (2020: £59,125). ## **21** |**Cash generated from operations**
Surplus/(deficit) for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Cash generated from/(absorbed by) operations**|**2021**
**2020**
**£**
**£**
32,652
(152,777)
63,026
61,788
(18,544)
14,774
11,790
(10,972)
88,924
(87,187)| |---|---| - 28 - ## **DERWENT STEPPING STONES NURSERY AND COMMUNITY TRAINING CENTRE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_ |22|**Analysis of changes in net funds/(debt)**|||| |---|---|---|---|---| |||**At 1 April 2020**|**Cash flows At 31 March 2021**|| |||**£**|**£**|**£**| ||Cash at bank and in hand|13,891|86,916|100,807| ||Loans falling due within one year|(11,466)|4,799|(6,667)| ||Loans falling due after more than one year|(40,542)|(2,791)|(43,333)| |||(38,117)|88,924|50,807| - 29 -