## **REPORT OF THE TRUSTEES AND**
**UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **FOR**
**PENNINGTON NURSERY**
**PENNINGTON NURSERY**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
|||**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 2023**
The trustees present their report with the financial statements of the charity for the year ended 31 August 2023. 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 PenningtonNursery 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 trainingcourses, 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) Encouragingthe 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**
The year ending on August 31st 2023 has marked another successful year for Pennington Nursery with the new nursery building being fully utilised for nursery provision as well as for sharing with other nursery staff in the area to facilitate trainingand sharinggood practice. demand remainshigh for nursery places, includingthe baby room, as well as for the after school and holiday club. The relationship with Pennington School s strong, with many shared activities as well as the continuation of the shared trustee and Link Governor.
On June 19th 2023 the Nursery was inspected by Ofsted. The trustees are delighted that the Nursery was rated 'Good' in all areas and that the inspector particularlycommented that 'the Nursery prioritises building positive relationships'.The trustees would like to thank the staff and managers for their continued hard work and commitment in providing high quality nursery provision to the local community.
The trustees remain committed to becoming an accredited Living Wage Foundation employer and it is expected that this will be achieved from April 2024.
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 £424K and expenditure on charitable activities of £389K. This has resulted in a net surplus contribution to reserve of £34K.The cash position remains strong. The Nursery is able to meet its liabilities, including the bounce back loan repayments.
The trustees are very confident about the ongoing financial strength of the Nursery.
Page 1
**PENNINGTON NURSERY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
## **FINANCIAL REVIEW**
## **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.
## **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.
The Trustees intend to focus efforts in future years on the development of the outside play areas, including provision of an outdoor classroom to support this aspect of the Early Years' Framework.
## **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**
Mrs S Turner (resigned 8.2.23) Mrs C Humphreys Mr O Collar Mrs L Collar Mr D White Mr R Greenfield Mrs K Newby
Page 2
**PENNINGTON NURSERY**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023**
## **REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner**
Mr J F Hornby, FCA 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 11 April 2024 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 2023.
## **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 examinationof 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 member of the Institute of Chartered Accountants in England and Wales, 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 The Institute of Chartered Accountants in England and Wales
J F Hornby & Co Chartered Accountants The Tower Daltongate Business Centre Daltongate Ulverston Cumbria LA12 7AJ
11 April 2024
Page 4
## **PENNINGTON NURSERY**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023**
|Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Nursery
422,167
Other trading activities
2
941
Investment income
3
416
**Total**
423,524
**EXPENDITURE ON**
Raising funds
-
**Charitable activities**
Nursery
389,785
**Total**
389,785
**NET INCOME**
33,739
**RECONCILIATION OF FUNDS**
Total funds brought forward
477,892
**TOTAL FUNDS CARRIED FORWARD**
511,631|Restricted
funds
£
-
-
-
-
-
-
-
-
-
-|31.8.23
Total
funds
£
422,167
941
416
423,524
-
389,785
389,785
33,739
477,892
511,631|31.8.22
Total
funds
£
394,423
790
20|
|---|---|---|---|
||||395,233|
||||311
341,822|
||||342,133|
||||53,100
424,792|
||||477,892|
The notes form part of these financial statements
Page 5
## **PENNINGTON NURSERY**
## **BALANCE SHEET 31 AUGUST 2023**
|Unrestricted
funds
Notes
£
**FIXED ASSETS**
Tangible assets
7
351,427
**CURRENT ASSETS**
Debtors
8
2,683
Cash in hand
188,083
190,766
**CREDITORS**
Amounts falling due within one year
9
(9,279)
**NET CURRENT ASSETS**
181,487
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
532,914
**CREDITORS**
Amounts falling due after more than one year
10
(21,283)
**NET ASSETS**
511,631
**FUNDS**
12
Unrestricted funds
**TOTAL FUNDS**|Restricted
funds
£
-
-
-
-
-
-
-
-
-|31.8.23
Total
funds
£
351,427
2,683
188,083
190,766
(9,279)
181,487
532,914
(21,283)
511,631
511,631
511,631|31.8.22
Total
funds
£
362,896
3,172
143,080
146,252
(6,227)
140,025
502,921
(25,029)
477,892
477,892
477,892|
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 11 April 2024 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 2023**
## **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 committingthe 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 2023**
## **2. OTHER TRADING ACTIVITIES**
## **3.**
|**OTHER TRADING ACTIVITIES**|||
|---|---|---|
||31.8.23|31.8.22|
||£|£|
|Fundraising events|941|790|
|**INVESTMENT INCOME**|||
||31.8.23|31.8.22|
||£|£|
|Bank interest|416|20|
## **INVESTMENT INCOME**
## **4. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022.
## **5. STAFF COSTS**
The average monthly number of employees during the year was as follows:
||31.8.23|31.8.22|
|---|---|---|
|Nursery Staff|15|15|
|Manager|2|2|
||17|17|
No employees received emoluments in excess of £60,000.
## **6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Nursery
394,423
Other trading activities
790
Investment income
20
**Total**
395,233
**EXPENDITURE ON**
Raising funds
311
**Charitable activities**
Nursery
341,822|Restricted
funds
£
-
-
-
-
-
-|Total
funds
£
394,423
790
20|
|---|---|---|
|||395,233|
|||311
341,822|
continued...
Page 8
## **PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
|**6.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
Unrestricted
Restricted
funds
funds
£
£
**Total**
342,133
-
**NET INCOME**
53,100
-
**RECONCILIATION OF FUNDS**
Total funds brought forward
424,792
-
**TOTAL FUNDS CARRIED FORWARD**
477,892
-
**7.**
**TANGIBLE FIXED ASSETS**
Long
Plant and
Computer
leasehold
machinery
equipment
£
£
£
**COST**
At 1 September 2022
365,992
11,044
1,058
Additions
-
2,586
-
At 31 August 2023
365,992
13,630
1,058
**DEPRECIATION**
At 1 September 2022
10,980
3,601
617
Charge for year
10,980
2,726
349
At 31 August 2023
21,960
6,327
966
**NET BOOK VALUE**
At 31 August 2023
344,032
7,303
92
At 31 August 2022
355,012
7,443
441|Total
funds
£
342,133
53,100
424,792
477,892
Totals
£
378,094
2,586
380,680
15,198
14,055
29,253
351,427
362,896|Total
funds
£|
|---|---|---|
|||342,133|
|||53,100
424,792|
|||477,892|
continued...
Page 9
## **PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
|**8.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Debtors
**9.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Bank loans and overdrafts (see note 11)
Taxation and social security
Other creditors
**10.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Bank loans (see note 11)
**11.**
**LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
**12.**
**MOVEMENT IN FUNDS**
At 1.9.22
£
**Unrestricted funds**
General fund
477,892
**TOTAL FUNDS**
477,892|31.8.23
£
2,683
31.8.23
£
3,864
4,328
1,087
9,279
31.8.23
£
21,283
31.8.23
£
3,864
21,283
-
Net
movement
in funds
£
33,739
33,739|31.8.22
£
3,172
31.8.22
£
3,772
817
1,638
6,227
31.8.22
£
25,029
31.8.22
£
3,772
3,868
21,161
At
31.8.23
£
511,631|
|---|---|---|
|||511,631|
continued...
Page 10
## **PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
## **12. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
423,524
423,524|Resources
Movement
expended
in funds
£
£
(389,785)
33,739
(389,785)
33,739|Resources
Movement
expended
in funds
£
£
(389,785)
33,739
(389,785)
33,739|
|---|---|---|---|
||||33,739|
## **Comparatives for movement in funds**
|At 1.9.21
£
**Unrestricted funds**
General fund
424,792
**TOTAL FUNDS**
424,792
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
395,233
**TOTAL FUNDS**
395,233|Net
movement
At
in funds
31.8.22
£
£
53,100
477,892
53,100
477,892
Resources
Movement
expended
in funds
£
£
(342,133)
53,100
(342,133)
53,100|At
31.8.22
£
477,892|
|---|---|---|
|||477,892|
|||53,100|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1.9.21
£
424,792
424,792|Net
movement
in funds
£
86,839
86,839|At
31.8.23
£
511,631|
|---|---|---|---|
||||511,631|
continued...
Page 11
## **PENNINGTON NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2023**
## **12. MOVEMENT IN FUNDS - continued**
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
£
818,757
818,757|Resources
Movement
expended
in funds
£
£
(731,918)
86,839
(731,918)
86,839|
|---|---|---|
## **13. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 August 2023.
Page 12
## **PENNINGTON NURSERY**
|**DETAILED STATEMENT OF FINANCIAL ACTIVITIES**|||
|---|---|---|
|**FOR THE YEAR ENDED 31 AUGUST 2023**|||
||31.8.23|31.8.22|
||£|£|
|**INCOME AND ENDOWMENTS**|||
|**Other trading activities**|||
|Fundraising events|941|790|
|**Investment income**|||
|Bank interest|416|20|
|**Charitable activities**|||
|Fees|244,521|206,690|
|Grants|177,646|187,733|
||422,167|394,423|
|**Total incoming resources**|423,524|395,233|
|**EXPENDITURE**|||
|**Raising donations and legacies**|||
|Fundraising|-|311|
|**Support costs**|||
|**Management**|||
|Wages|305,099|262,717|
|Social security|7,975|9,266|
|Pensions|5,483|5,433|
|Rates|396|-|
|Insurance|2,238|1,959|
|Light and heat|950|684|
|Telephone|1,879|1,676|
|Rent|2,600|2,700|
|Advertising|150|98|
|Sundries|2,915|2,583|
|Water rates|500|1,034|
|Postage & stationery|1,053|847|
|Food & snacks|7,691|7,141|
|Repairs & maintenance|3,080|3,757|
|Supplies|12,928|13,922|
|Uniforms|564|1,384|
|Computer expenses|864|1,502|
|Training|581|1,805|
|Waste removal|1,105|1,881|
|Temporary Staff|9,487|2,016|
|Bank interest payable|705|1,100|
||368,243|323,505|
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 2023**
||31.8.23|31.8.22|
|---|---|---|
||£|£|
|**Management**|||
|**Finance**|||
|Long leasehold|10,980|10,980|
|Plant and machinery|2,726|2,798|
|Computer equipment|349|408|
||14,055|14,186|
|**Governance costs**|||
|Accountancy and legal fees|7,487|4,131|
|Total resources expended|389,785|342,133|
|**Net income**|33,739|53,100|
This page does not form part of the statutory financial statements
Page 14