REGISTERED CHARITY NUMBER: 1029589
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 August 2021
for
The Heathers Nursery
Anglian Accountancy Services 2 Boundary Avenue Hellesdon Norwich NR6 5HY
The Heathers Nursery
Report of the Trustees for the Year Ended 31 August 2021
The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. 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
Objectives and aims
The charities objects are 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. It does this by the operation of a pre-school nursery.
Public benefit
The nursery is open to all children, without any catchment area, nationality, religious or other restriction, from when they are two and a half years old until they are able to enter infant school. Early Years funding was available for all children from the term following their third birthday until they were able to enter infant school and some children were eligible for funding from the term following their second birthday. No children are therefore excluded for financial reason.
Volunteers
The charity is reliant on volunteers in the carrying out of its activities, however measurement issues, including attributing an economic value to the contribution of the parent/guardian volunteers, prevent the inclusion of their contribution in the statement of financial activities.
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The Heathers Nursery
Report of the Trustees for the Year Ended 31 August 2021
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The year started well with average child numbers and filled sessions. Child numbers increased gradually with full days remaining more popular than morning sessions.
Covid restrictions were lifted from the summer term so that day to day nursery had largely returned to normal. No cases of Covid were reported in nursery during the autumn term.
The annual Christmas story café did not go ahead due to guidance of limiting visitors into nursery unless absolutely essential.
A staff Covid outbreak at Christmas was the most challenging experience the nursery has faced and resulted in 6 staff members contracting Covid, infecting many members of their immediate families and saw a staff member hospitalised with severe Covid for 5 weeks.
The committee made the decision to delay the opening of nursery in the Spring term for two weeks to give the staff time to recover and their isolation periods to end. With the next lockdown announced in early January for schools, time was needed to assess the numbers of children wanting to return to nursery and if we could staff it, as we had a pregnant member of staff and staff who were carers of elderly relatives. The two week delay gave the staff time to plan for the re-opening and ensure staffing levels were adequate.
The outbreak was reported to NCC, PHE and Ofsted and following a review of the outbreak, no actions were required.
The Wensum Trust arranged for fogging of the mobile & classroom to further reassure staff and parents that the outbreak was over and thanks must go to the Trust for arranging this.
Following the gradual easing of restrictions in Spring 2021, child numbers increased further with many children starting nursery for the first time to give them just a few weeks early education before they started school. This did present some challenges for staff around these children, and we continued to have high levels of SEND children.
Two staff members did not return to work during the remainder of the year due to long Covid and an unsafe working environment for a staff member who was entering her third trimester of pregnancy. The committee had made the decision to pay the staff members in full and during the spring term their hours were not fully covered as child numbers remained low (funding was paid in full as pre-Covid by NCC).
A mature student approached us in December 2020 to seek volunteer hours for her Level 2 course and joined us in March for two mornings a week.
As child numbers increased, the mature student became an important part of the team and was given a bank hours contract for her volunteer hours, as we could use the Covid dispensations of qualified staff in ratio to help us meet the demands on staff that we had. With the low number of people applying for a staff vacancy, we felt that a member of staff trained by us was an asset considering the uncertainty of staff returning following Covid & maternity and how we had struggled to get cover for staff in the Spring and early Summer terms.
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The Heathers Nursery
Report of the Trustees for the Year Ended 31 August 2021
From the summer term, we were double paying for the staff to replace the two absent staff members in ratio, which was a cost of approximately £1,500 per month. This continued until June when one member of staff started her maternity leave and August when the other member of staff returned to work.
The behaviour management of children became increasingly difficult in the summer term and external agencies were called in to offer support and advice. Reassuringly, but unfortunately, there was nothing else we could have put in place to manage the behaviour and all staff were more than ready for the Summer break.
The levels of SEND within nursery have been the highest ever recorded and the amount of time the referrals, SALT, meetings etc. took did have an impact on all staff, particularly the manager and deputy manager, but we have learnt a huge amount from this experience and with the deputy manager completing her Level 3 SENDCO, we feel that nursery will benefit from this experience in the future.
One member of staff also completed her Level 3 Early Years Educator course and the mature student completed her Level 2 and has already embarked on her Level 3. One member of staff is also midway through her Early Years Degree and another member of staff is seeking a level 3 course for September 2021.
With the ongoing restrictions in training, there have been limited opportunities for ongoing CPD. For several years, we have facilitated first aid courses for the early years community in Norfolk and as soon as we were able to, we resumed offering first aid courses, which Ofsted still require staff to have. This has resulted in us offering 20 practitioners first aid training, along with 5 of our own staff. While there is no profit from this, we do cover the costs of refreshments and building costs and it has helped us develop working relationships with other providers and trainers. In July 2020, we laid on Step On training (behaviour management) for all our staff and staff from two other settings in view of the anticipated challenges that children who have experienced life in a pandemic may present with.
We invested in nursery in Autumn 2020 and finally bought the new tables and chairs that we had raised money for over several years to buy. We also needed to replace the filled in sandpit, which we did in September 2020 when we ordered equipment for the new outside area. By December 2020 we were still waiting for this equipment with no lead time for delivery. We received a full refund in February 2021 and by August 2021 had finally taken delivery of a sandpit.
As the building has continued to age, we have had higher maintenance costs this year, but the building is now in sound order and has been repainted to freshen it up and protect it.
The move into The Wensum Trust is still planned but has been delayed by DfE legalities.
FINANCIAL REVIEW
Financial position
There was an increase in funds in the year of £819 (2020: increase: £11,778). Funds at the year end totalled £67,462 (2020: £66,643), of which £35,149 (2020: £34,337) related to the general fund and £32,313 (2020: £32,306) to the Building Repair and Replacement designated fund.
Principal funding sources
The principal source of funding during the year was from Norfolk Education grants and nursery fees.
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The Heathers Nursery
Report of the Trustees for the Year Ended 31 August 2021
FINANCIAL REVIEW
Investment policy and objectives
The investment objectives are to achieve growth, whilst minimising risk. Surplus funds in the general fund are placed in a bank deposit account, with funds being accumulated in the building repair and replacement fund being placed in a separate deposit account.
Reserves policy
It is the policy of the trustees to maintain general funds, excluding those funds invested in fixed assets, at a level that equates to three months expenditure, a figure of approximately £39,000. This provides sufficient funds to cover salaries and other costs incurred in the event of a temporary reduction in income.
Free reserves (which excludes fixed assets) in the general fund at the year end amounted to £26,790 and it is the Committee's intention to continue to build free reserves to the required level.
Designated funds amounting to £32,313 have been put aside to provide for major classroom building repair costs as they arise and the eventual replacement of the classroom owned by the nursery. These funds could be used, if required, in the event of a temporary reduction in general reserves,
FUTURE PLANS
The committee will work with the staff team to ensure the nursery remains sustainable in view of the challenges the early year sector faces and the ongoing Coronavirus pandemic.
The committee will also continue to work on the proposals for the nursery to join The Wensum Trust and will review the strategy for the future development of the nursery, including reviewing the useful life of the existing building owned by the nursery, and its possible replacement.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
The Heathers Nursery, which was established in the 1970s, was registered as a charity on 2 December 1993 and is governed by a constitution adopted on 21 October 1993 and amended on 10 December 1997, 26 September 2002 and 18 October 2012.
Recruitment and appointment of new trustees
At least 60% of the trustees, including co-opted members, must be parents or guardians of children in the nursery. In the event that 60% cannot be achieved, then affiliate members may be elected. The trustees are elected for a period of one year at the annual general meeting. Retiring trustees are eligible for re-election unless they have already served as a trustee for 10 consecutive years.
Organisational structure
The charity has a committee (board of trustees) consisting of Chair, Secretary and Treasurer (currently vacant) and not less than 2 nor more than 9 elected members. If the committee so decides, it may have not more than 3 members co-opted by the committee. The committee meets monthly and the day to day running of the nursery rests with the nursery manager, as assisted by twelve staff, together with unpaid helpers
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The Heathers Nursery Report of the Trustees for the Year Ended 31 August 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Induction and training of new trustees
New trustees are encouraged to read the charity's constitution, the last financial statements of the charity and the Charity Commission guidance, CC3, 'The Essential Trustee: what you need to know, what you need to do' and the Charity Governance Code.
Key management remuneration
The key management personnel consists of the Nursery Manager and the Administration Manager. They are remunerated at a rate which is based on the prevailing rate for the sector.
Risk management
The trustees have reviewed and identified the risks that the nursery faces and have systems to monitor and control these risks to mitigate any impact they may have on the nursery in the future. These systems are reviewed on a regular basis.
.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 1029589
Principal address Bracken Avenue Hellesdon Norwich Norfolk NR6 6LS
Trustees
C Kiddell (Chairman) R Kettle S Taylor-Windle (resigned 12.11.20) L Holloway (Treasurer) (resigned 12.11.20) S Edmontson (resigned 12.11.20) K Barry-Winson C Dagraca (Secretary) S Ford E Withers (appointed 12.11.20) (resigned 1.8.21)
Independent Examiner
Anglian Accountancy Services 2 Boundary Avenue Hellesdon Norwich NR6 5HY
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The Heathers Nursery
Report of the Trustees for the Year Ended 31 August 2021
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
............................................................
C Kiddell (Chairman) - Trustee
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Independent Examiner's Report to the Trustees of The Heathers Nursery
Independent examiner's report to the trustees of The Heathers Nursery
I report to the charity trustees on my examination of the accounts of The Heathers Nursery (the Trust) for the year ended 31 August 2021.
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
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:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
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.
Nigel Whitlam Anglian Accountancy Services 2 Boundary Avenue Hellesdon Norwich NR6 5HY
Date: .............................................
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The Heathers Nursery
Statement of Financial Activities for the Year Ended 31 August 2021
| 31.8.21 Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 1,000 Charitable activities Nursery operations 152,567 Other trading activities 2 3,382 Investment income 3 10 Total 156,959 EXPENDITURE ON Raising funds 35 Charitable activities Nursery operations 156,105 Total 156,140 NET INCOME 819 RECONCILIATION OF FUNDS Total funds brought forward 66,643 TOTAL FUNDS CARRIED FORWARD 67,462 |
31.8.20 Total funds £ - 152,999 1,210 92 154,301 287 142,236 142,523 11,778 54,865 66,643 |
|---|---|
The notes form part of these financial statements
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The Heathers Nursery
Balance Sheet
31 August 2021
| 31.8.21 Unrestricted funds Notes £ FIXED ASSETS Tangible assets 8 8,359 CURRENT ASSETS Debtors 9 - Cash at bank and in hand 59,558 59,558 CREDITORS Amounts falling due within one year 10 (455) NET CURRENT ASSETS 59,103 TOTAL ASSETS LESS CURRENT LIABILITIES 67,462 NET ASSETS 67,462 FUNDS 12 Unrestricted funds 67,462 TOTAL FUNDS 67,462 |
31.8.20 Total funds £ 6,042 532 62,558 63,090 (2,489) 60,601 66,643 66,643 66,643 66,643 |
|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. C Kiddell (Chairman) - Trustee
The notes form part of these financial statements
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The Heathers Nursery
Notes to the Financial Statements for the Year Ended 31 August 2021
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.
Equipment
- 20% 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.
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The Heathers Nursery
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
2. OTHER TRADING ACTIVITIES
| OTHER TRADING ACTIVITIES | ||
|---|---|---|
| 31.8.21 | 31.8.20 | |
| £ | £ | |
| Fundraising events | 1,527 | 1,210 |
| Training income | 1,855 | - |
| 3,382 | 1,210 | |
| INVESTMENT INCOME | ||
| Bank interest receivable | 31.8.21 £ 10 |
31.8.20 £ 92 |
3. INVESTMENT INCOME
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.
5. STAFF COSTS
| Wages and salaries Other pension costs |
31.8.21 £ 128,881 1,561 130,442 |
31.8.20 £ 118,942 1,403 120,345 |
|---|---|---|
The average monthly number of employees during the year was as follows:
| Direct Administration |
31.8.21 12 1 13 |
31.8.20 12 1 13 |
|---|---|---|
No employees received emoluments in excess of £60,000.
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The Heathers Nursery
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
| 6. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | |
|---|---|---|
| Unrestricted | ||
| funds | ||
| £ | ||
| INCOME AND ENDOWMENTS FROM | ||
| Charitable activities | ||
| Nursery operations | 152,999 | |
| Other trading activities | 1,210 | |
| Investment income | 92 | |
| Total | 154,301 | |
| EXPENDITURE ON | ||
| Raising funds | 287 | |
| Charitable activities | ||
| Nursery operations | 142,236 | |
| Total | 142,523 | |
| NET INCOME | 11,778 | |
| RECONCILIATION OF FUNDS | ||
| Total funds brought forward | 54,865 | |
| TOTAL FUNDS CARRIED FORWARD | 66,643 | |
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The Heathers Nursery
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
7. GOING CONCERN
There are no material uncertainties about the charity's ability to continue. Early years funding has continued throughout the Coronavirus pandemic and income levels are being maintained.
8. TANGIBLE FIXED ASSETS
| Short leasehold (Classroom) Equipment £ £ COST At 1 September 2020 40,957 15,382 Additions - 6,104 Disposals - (2,559) At 31 August 2021 40,957 18,927 DEPRECIATION At 1 September 2020 40,957 9,340 Charge for year - 3,787 Eliminated on disposal - (2,559) At 31 August 2021 40,957 10,568 NET BOOK VALUE At 31 August 2021 - 8,359 At 31 August 2020 - 6,042 9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.8.21 £ Prepayments and accrued income - |
Totals £ 56,339 6,104 (2,559) 59,884 50,297 3,787 (2,559) 51,525 8,359 6,042 31.8.20 £ 532 |
|---|---|
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The Heathers Nursery
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 31.8.21 | 31.8.20 | |
|---|---|---|
| £ | £ | |
| Taxation and social security | - | 560 |
| Other creditors | 455 | 1,929 |
| 455 | 2,489 |
11. LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
| Within one year | 31.8.21 31.8.20 £ £ 800 800 |
|---|---|
| Between one and five years | 3,200 - |
| 4,000 800 |
12. MOVEMENT IN FUNDS
| At 1.9.20 £ Unrestricted funds General fund 34,337 Building repair and replacement fund 32,306 66,643 TOTAL FUNDS 66,643 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 156,952 Building repair and replacement fund 7 156,959 TOTAL FUNDS 156,959 |
Net movement in funds £ 812 7 819 819 Resources expended £ (156,140) - (156,140) (156,140) |
At 31.8.21 £ 35,149 32,313 67,462 67,462 Movement in funds £ 812 7 819 819 |
|---|---|---|
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The Heathers Nursery
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
12. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Net movement At 1.9.19 in funds £ £ Unrestricted funds General fund 22,611 11,726 Building repair and replacement fund 32,254 52 54,865 11,778 TOTAL FUNDS 54,865 11,778 Comparative net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 154,249 (142,523) Building repair and replacement fund 52 - 154,301 (142,523) TOTAL FUNDS 154,301 (142,523) |
At 31.8.20 £ 34,337 32,306 66,643 66,643 Movement in funds £ 11,726 52 11,778 11,778 |
|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund Building repair and replacement fund TOTAL FUNDS |
Net movement At 1.9.19 in funds £ £ 22,611 12,538 32,254 59 54,865 12,597 54,865 12,597 |
At 31.8.21 £ 35,149 32,313 67,462 67,462 |
|---|---|---|
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The Heathers Nursery
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
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 Building repair and replacement fund TOTAL FUNDS |
Incoming resources £ 311,201 59 311,260 311,260 |
Resources expended £ (298,663) - (298,663) (298,663) |
Movement in funds £ 12,538 59 12,597 12,597 |
|---|---|---|---|
13. RELATED PARTY DISCLOSURES
There were no related party disclosures for the year ended 31 August 2021.
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The Heathers Nursery
| Detailed Statement of Financial Activities for the Year Ended 31 August 2021 INCOME AND ENDOWMENTS Donations and legacies Donations Other trading activities Fundraising events Training income Investment income Bank interest receivable Charitable activities Nursery fees Norfolk Education grants CJRS grants Total incoming resources EXPENDITURE Raising donations and legacies Fundraising Charitable activities Staff salaries Pensions Rent, rates and insurance Light and heat Sundries Courses Subscriptions Outings and parties Repairs and renewals Consumables Carried forward |
31.8.21 £ 1,000 1,527 1,855 3,382 10 5,553 147,014 - 152,567 156,959 35 125,618 1,561 4,575 1,139 1,436 2,709 514 - 4,847 2,813 145,212 |
31.8.20 £ - 1,210 - 1,210 92 13,144 137,109 2,746 152,999 154,301 287 115,758 1,403 4,951 1,025 879 2,100 508 70 3,678 1,605 131,977 |
|---|---|---|
This page does not form part of the statutory financial statements
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The Heathers Nursery
| Detailed Statement of Financial Activities for the Year Ended 31 August 2021 Charitable activities Brought forward Administration EYPP expenditure Depreciation of equipment Support costs Governance costs Staff salaries Accountancy and legal fees Total resources expended Net income |
31.8.21 £ 145,212 3,268 120 3,787 152,387 3,263 455 3,718 156,140 819 |
31.8.20 £ 131,977 3,190 371 3,074 138,612 3,184 440 3,624 142,523 11,778 |
|---|---|---|
This page does not form part of the statutory financial statements
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The Heathers Nursery
Contents of the Financial Statements for the Year Ended 31 August 2021
| Page | |
|---|---|
| Report of the Trustees | 1 to 6 |
| Independent Examiner's Report | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Notes to the Financial Statements | 10 to 16 |
| Detailed Statement of Financial Activities | 17 to 18 |