**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.
Page 1
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.
Page 2
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.
Page 3
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
Page 4
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
Page 5
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
Page 6
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:
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.
Nigel Whitlam Anglian Accountancy Services 2 Boundary Avenue Hellesdon Norwich NR6 5HY
Date: .............................................
Page 7
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
Page 8
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
Page 9
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.
Page 10
continued...
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.
Page 11
continued...
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|
||||
Page 12
continued...
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|
|---|---|
Page 13
continued...
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|
|---|---|---|
Page 14
continued...
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|
|---|---|---|
Page 15
continued...
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.
Page 16
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
Page 17
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
Page 18
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|