## **REPORT OF THE TRUSTEES AND**
**UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **FOR**
**PENNINGTON NURSERY**
**PENNINGTON NURSERY**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|3|
|**Independent Examiner's Report**||4||
|**Statement of Financial Activities**||5||
|**Balance Sheet**||6||
|**Notes to the Financial Statements**|7|to|12|
|**Detailed Statement of Financial Activities**|13|to|14|
**PENNINGTON NURSERY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022**
The trustees present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of 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**
## **Aim**
The principle purpose of Pennington Nursery is to enhance the development and education of children under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups and by:
a) Offering appropriate play facilities and training courses, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children, regardless of race, culture, religion, means or ability:
b) Encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs in the local area(s).
The charity is constituted as an unincorporated charity and is controlled by its governing document.
The Nursery serves the local community but does not apply any form of restriction, geographical or otherwise to allow access to its services. The Nursery's educational operations regulated by Ofsted and Cumbria County Council. The Nursery is currently rated as 'Good' by Ofsted.
The services offered by the Trustees of the Nursery are deemed to be beneficial by their nature and are available to a large section of the public.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
Following the completion of the new nursery building in September 2021, the children and staff at Pennington Nursery have enjoyed the purpose built environment to its full. Demand remains high for nursery places, including the baby room, as well as for the after school and holiday club. The Nursery has continued its close links with Pennington School, with a shared trustee and Link Governor.
The continued restrictions for part of the financial year meant that there were periods when the Nursery closed due to an outbreak but otherwise the staff coped very well. The trustees are mindful of the impact on staff wellbeing of the pandemic and seek to provide support and assistance where and when appropriate. The pandemic however has particularly impacted on staff recruitment and retention, which was challenging throughout the 2021-2022 financial year. The trustees continue to address this through above inflation pay increases and an objective to become a Living Wage Foundation accredited employer within the next few years.
Both the Nursery Manager and Education Manager are responsible for the management and education respectively within the Nursery and have continued to run things very well. They have full delegated responsibility for operational decision making from the trustees who meet as a body on a regular basis to receive reports from the Nursery managers.
## **FINANCIAL REVIEW**
## **Financial position**
The financial position of the Nursery remains strong, with income from Nursery fees and grants providing a total income of £395K and expenditure on charitable activities of £342K. This has resulted in a net surplus contribution to reserve of £53K. The reduction in the cash position relates entirely to the commissioning of the new building.
The trustees are very confident about the ongoing financial strength of the Nursery
## **Reserves policy**
The charity wishes to accumulate sufficient reserves in order to ensure its future financial security in order to maintain its charitable activities and meet the needs of its key stakeholders.
Page 1
**PENNINGTON NURSERY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022**
## **FINANCIAL REVIEW**
## **Going concern**
The purpose of the Nursery's reserves is to provide sufficient protection for the Nursery against changing financial circumstances and to support future business development to enable the Nursery to continue to fulfil its principal purpose. The level of general reserves as reflected in Note 11 to the financial statements is represented by tangible assets and net current assets and is considered sufficient for the Nursery to meet its short to medium term expenditure obligations. The Nursery's cash reserves significantly outweigh its short and long term liabilities.
The Trustees have a reasonable expectation that the Nursery has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
## **Constitution**
The charity is governed by a constitution created in October 1993 and amended in February 2001.
## **FUTURE PLANS**
Following the completion of the new building, the main objective of the trustees for the forth coming period is the consolidation of its position as a recognised quality provider of nursery and early years educational services. The trustees wish to establish the Nursery as the provider of choice for parents and carers as well as an employer of choice people wishing to work in the sector.
In addition, the Nursery intends to focus efforts in future years on the renewed and development of the outside play areas.
In order to consolidate its statutory position, the charity intends to become an incorporated body and a charitable company limited by guarantee.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number**
1028638
## **Principal address**
Memorial Hall Grounds Cross - A - Moor Ulverston Cumbria LA12 0RT
## **Trustees**
Mr A Turner (resigned 1.9.21) Mrs S Turner (resigned 8.2.23) Mrs C Humphreys Mr O Collar Mrs L Collar Mr D White (appointed 1.9.21) Mr R Greenfield (appointed 1.9.21) Mrs K Newby (appointed 1.10.21)
Page 2
**PENNINGTON NURSERY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022**
## **REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner**
Mr J F Hornby, FCA ICAEW J F Hornby & Co Chartered Accountants The Tower Daltongate Business Centre Daltongate Ulverston Cumbria LA12 7AJ
## **Bankers**
Lloyds Bank plc 121-135 Dalton Road Barrow-in-Furness Cumbria LA14 1HZ
Approved by order of the board of trustees on 2 March 2023 and signed on its behalf by:
Mrs C Humphreys - Trustee
Page 3
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PENNINGTON NURSERY**
## **Independent examiner's report to the trustees of Pennington Nursery**
I report to the charity trustees on my examination of the accounts of Pennington Nursery (the Trust) for the year ended 31 August 2022.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
## **Independent examiner's statement**
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Mr J F Hornby, FCA ICAEW J F Hornby & Co Chartered Accountants The Tower Daltongate Business Centre Daltongate Ulverston Cumbria LA12 7AJ
3 March 2023
Page 4
## **PENNINGTON NURSERY**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022**
|Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
-
**Charitable activities**
Nursery
394,423
Other trading activities
2
790
Investment income
3
20
Other income
-
**Total**
395,233
**EXPENDITURE ON**
Raising funds
311
**Charitable activities**
Nursery
341,822
**Total**
342,133
**NET INCOME**
53,100
**RECONCILIATION OF FUNDS**
Total funds brought forward
424,792
**TOTAL FUNDS CARRIED FORWARD**
477,892|Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-|31.8.22
Total
funds
£
-
394,423
790
20
-
395,233
311
341,822
342,133
53,100
424,792
477,892|31.8.21
Total
funds
£
1,185
322,445
-
38
18,272|
|---|---|---|---|
||||341,940|
||||-
254,044|
||||254,044|
||||87,896
336,896|
||||424,792|
The notes form part of these financial statements
Page 5
## **PENNINGTON NURSERY**
## **BALANCE SHEET 31 AUGUST 2022**
|Unrestricted
funds
Notes
£
**FIXED ASSETS**
Tangible assets
7
362,897
**CURRENT ASSETS**
Debtors
8
3,172
Cash in hand
143,079
146,251
**CREDITORS**
Amounts falling due within one year
9
(6,227)
**NET CURRENT ASSETS**
140,024
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
502,921
**CREDITORS**
Amounts falling due after more than one year
10
(25,029)
**NET ASSETS**
477,892
**FUNDS**
12
Unrestricted funds
**TOTAL FUNDS**|Restricted
funds
£
-
-
-
-
-
-
-
-
-|31.8.22
Total
funds
£
362,897
3,172
143,079
146,251
(6,227)
140,024
502,921
(25,029)
477,892
477,892
477,892|31.8.21
Total
funds
£
369,127
2,539
172,421
174,960
(75,880)
99,080
468,207
(43,415)
424,792
424,792
424,792|
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 2 March 2023 and were signed on its behalf by:
Mrs C Humphreys - Trustee
Mr O Collar - Trustee
The notes form part of these financial statements
Page 6
**PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - 3% on cost Plant and machinery - 20% on cost Computer equipment - 33% on cost
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Pension costs and other post-retirement benefits**
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
## **Grants**
Grants received are credited to profit and loss account in the financial period in which they are received.
continued...
Page 7
**PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022**
## **2. OTHER TRADING ACTIVITIES**
## **3.**
|**OTHER TRADING ACTIVITIES**|||
|---|---|---|
||31.8.22|31.8.21|
||£|£|
|Fundraising events|790|-|
|**INVESTMENT INCOME**|||
||31.8.22|31.8.21|
||£|£|
|Bank interest|20|38|
## **4. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.
## **5. STAFF COSTS**
The average monthly number of employees during the year was as follows:
## **6.**
|Nursery Staff
Manager
No employees received emoluments in excess of £60,000.
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
1,185
**Charitable activities**
Nursery
322,445
Investment income
38
Other income
18,272
**Total**
341,940
**EXPENDITURE ON**
**Charitable activities**
Nursery
254,044
**NET INCOME**
87,896|31.8.22
15
2
17
Restricted
funds
£
-
-
-
-
-
-
-|31.8.21
13
2
15
Total
funds
£
1,185
322,445
38
18,272|
|---|---|---|
|||341,940|
|||254,044|
|||87,896|
continued...
Page 8
## **PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022**
|**6.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
Unrestricted
Restricted
funds
funds
£
£
**RECONCILIATION OF FUNDS**
Total funds brought forward
336,896
-
**TOTAL FUNDS CARRIED FORWARD**
424,792
-
**7.**
**TANGIBLE FIXED ASSETS**
Long
Plant and
Computer
leasehold
machinery
equipment
£
£
£
**COST**
At 1 September 2021
365,492
4,012
635
Additions
501
7,032
423
At 31 August 2022
365,993
11,044
1,058
**DEPRECIATION**
At 1 September 2021
-
802
210
Charge for year
10,980
2,799
407
At 31 August 2022
10,980
3,601
617
**NET BOOK VALUE**
At 31 August 2022
355,013
7,443
441
At 31 August 2021
365,492
3,210
425
**8.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
31.8.22
£
Debtors
3,172
Prepayments
-
3,172|Total
funds
£
336,896
424,792
Totals
£
370,139
7,956
378,095
1,012
14,186
15,198
362,897
369,127
31.8.21
£
1,786
753
2,539|Total
funds
£
336,896|
|---|---|---|
|||424,792|
continued...
Page 9
**PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022**
|**9.**|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**||||
|---|---|---|---|---|---|
|||||31.8.22|31.8.21|
|||||£|£|
||Bank loans and overdrafts (see note 11)|||3,772|5,660|
||Taxation and social security|||817|1,452|
||Other creditors|||1,638|68,768|
|||||6,227|75,880|
|**10.**|**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN**||**ONE YEAR**|||
|||||31.8.22|31.8.21|
|||||£|£|
||Bank loans (see note 11)|||25,029|43,415|
|**11.**|**LOANS**|||||
||An analysis of the maturity of loans is given below:|||||
|||||31.8.22|31.8.21|
|||||£|£|
||Amounts falling due within one year on demand:|||||
||Bank loans|||3,772|5,660|
||Amounts falling between one and two years:|||||
||Bank loans - 1-2 years|||3,868|5,804|
||Amounts falling due between two and five years:|||||
||Bank loans - 2-5 years|||21,161|37,611|
|**12.**|**MOVEMENT IN FUNDS**|||||
|||||Net||
|||||movement|At|
|||At|1.9.21|in funds|31.8.22|
||||£|£|£|
||**Unrestricted funds**|||||
||General fund|424,792||53,100|477,892|
||**TOTAL FUNDS**|424,792||53,100|477,892|
||Net movement in funds, included in the above are as follows:|||||
|||Incoming||Resources|Movement|
|||resources||expended|in funds|
||||£|£|£|
||**Unrestricted funds**|||||
||General fund|395,233||(342,133)|53,100|
||**TOTAL FUNDS**|395,233||(342,133)|53,100|
continued...
Page 10
**PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022**
## **12. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|At 1.9.20
£
**Unrestricted funds**
General fund
336,896
**TOTAL FUNDS**
336,896
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
341,940
**TOTAL FUNDS**
341,940|Net
movement
At
in funds
31.8.21
£
£
87,896
424,792
87,896
424,792
Resources
Movement
expended
in funds
£
£
(254,044)
87,896
(254,044)
87,896|At
31.8.21
£
424,792|
|---|---|---|
|||424,792|
|||87,896|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1.9.20
£
336,896
336,896|Net
movement
in funds
£
140,996
140,996|At
31.8.22
£
477,892|
|---|---|---|---|
||||477,892|
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
**TOTAL FUNDS**|Incoming
resources
£
737,173
737,173|Resources
Movement
expended
in funds
£
£
(596,177)
140,996
(596,177)
140,996|Resources
Movement
expended
in funds
£
£
(596,177)
140,996
(596,177)
140,996|
|---|---|---|---|
||||140,996|
continued...
Page 11
**PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022**
## **13. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 August 2022.
## **14. DESIGNATED FUNDS**
In the prior year funds had been set aside by the trustees for the specific purpose of the new build. This project is now complete and the debt cleared.
|**Fund**
New building fund
Total|Balance at 1
September 2021
365,492
365,492|Incoming
Resources
-
-|Outgoing
Resources
-
-|Transfers
(365,492)
(365,492)|Balance at
31 August
2022
-|
|---|---|---|---|---|---|
||||||-|
Page 12
## **PENNINGTON NURSERY**
|**DETAILED STATEMENT OF FINANCIAL ACTIVITIES**|||
|---|---|---|
|**FOR THE YEAR ENDED 31 AUGUST 2022**|||
||31.8.22|31.8.21|
||£|£|
|**INCOME AND ENDOWMENTS**|||
|**Donations and legacies**|||
|Donations|-|1,185|
|**Other trading activities**|||
|Fundraising events|790|-|
|**Investment income**|||
|Bank interest|20|38|
|**Charitable activities**|||
|Fees|206,690|143,041|
|Grants|187,733|179,404|
||394,423|322,445|
|**Other income**|||
|Insurance claim|-|18,272|
|**Total incoming resources**|395,233|341,940|
|**EXPENDITURE**|||
|**Raising donations and legacies**|||
|Fundraising|311|-|
|**Support costs**|||
|**Management**|||
|Wages|262,717|213,933|
|Social security|9,266|1,576|
|Pensions|5,433|3,730|
|Insurance|1,959|1,730|
|Light and heat|684|489|
|Telephone|1,676|1,697|
|Rent|2,700|3,600|
|Advertising|98|-|
|Sundries|2,583|1,183|
|Water rates|1,034|400|
|Postage & stationery|847|528|
|Food & snacks|7,141|4,862|
|Repairs & maintenance|3,757|1,459|
|Supplies|13,922|7,702|
|Uniforms|1,384|-|
|Computer expenses|1,502|594|
|Training|1,805|449|
|Waste removal|1,881|1,467|
|PPE|-|2,435|
|Temporary Staff|2,016|-|
|Carried forward|322,405|247,834|
This page does not form part of the statutory financial statements
Page 13
## **PENNINGTON NURSERY**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022**
|**FOR THE YEAR ENDED**|**31 AUGUST 2022**||
|---|---|---|
||31.8.22|31.8.21|
||£|£|
|**Management**|||
|Brought forward|322,405|247,834|
|Bank interest payable|1,100|205|
||323,505|248,039|
|**Finance**|||
|Long leasehold|10,980|-|
|Plant and machinery|2,798|802|
|Computer equipment|408|210|
|Loss on sale of tangible fixed assets|-|2,886|
||14,186|3,898|
|**Governance costs**|||
|Accountancy and legal fees|4,131|2,107|
|Total resources expended|342,133|254,044|
|**Net income**|53,100|87,896|
This page does not form part of the statutory financial statements
Page 14