## Early Years @ Lightcliffe
Charity number 1037861
## Annual Report and Financial Statements
for the year ended 31 August 2020
## Early Years @ Lightcliffe
## Annual Report and Financial Statements
for the year ended 31 August 2020
|**Contents**|**Page**|
|---|---|
|Trustees' report|2 to 4|
|Examiner's report|5|
|Receipts and payments account|6|
|Statement of assets and liabilities|7|
|Notes to the accounts|8 to 9|
**Prepared by West Yorkshire Community Accounting Service**
1
## Early Years @ Lightcliffe
## Trustees' report for the year ended 31 August 2020
## **Reference and administrative details of the charity, its trustees and advisors**
The trustees during the financial year and up to and including the date the report was approved were: **Name Position Dates**
**Position Dates** Gemma Turner Chair Resigned August 2020 Katy Taylor Chair Appointed August 2020 Kim Lambert Treasurer to August 2020 Sarah Hey Treasurer Appointed August 2020 Kirsty Marsden Resigned August 2020 Carly Durrans Laura Midgley Emma Szyczak Appointed August 2020 Kimberley Szyczak Appointed August 2020
## **Charity number**
The charity was registered with the Charity Commission for England and Wales, number 1037861, on 23 May 1994.
**Principal address Bankers** Christ Church Centre Lightcliffe Unity Trust Bank Leeds Road Nine Brindley Place Lightcliffe Birmingham Halifax B1 2HB HX3 8NU
## **Independent examiner**
Helen Galvin FCCA
## **West Yorkshire Community Accounting Service**
Stringer House 34 Lupton Street Leeds LS10 2QW
## **Structure, governance and management**
The charity is governed by a constitution adopted on 27 October 1993, amended on 2 April 2007 and 18 January 2012.
## **Method of recruitment and appointment of trustees**
The trustees of the charity are appointed by the members at the AGM.
2
## Early Years @ Lightcliffe
## Trustees' report (continued) for the year ended 31 August 2020
## **Objectives and activities**
## **The charity's objects**
To enhance the development and education of children primarily under statutory age by encouraging parents to understand and provide for the needs of their children though community groups and by:
(a) offering appropriate play, education and care facilities, family learning and extended hours groups, 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 whatever their 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 areas;
(c) instigating and adhering to and furthering the aims and objects of the Pre-school Learning Alliance.
## **The charity's main activities**
To provide for children aged 2 to 5 Pre-school education and an after school club.
## **Public benefit statement**
In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular raising the standard of education for local children.
## **Achievements and performance**
We continued to remain open through the lockdown period, provided childcare for keyworkers. We have also managed to keep all our current staff through such uncertain times.
We bought the building in which we have rented for over 20 years. This allowed us to improve our after school environment this year and provided them with their own room, we also now an office, staff area and an area where we can confidential speak with parents.
## **Financial review**
The net payments for the year were £103,142, including net payments of £102,989 on unrestricted funds and net payments of £153 on restricted funds.
## **Reserves policy**
The charity's free reserves at the year end were £22,333.
The committee of Early Years@Lightcliffe have considered the financial risks for the future operation of the group and agreed that a reserves policy should be set in place.
The committee consider that reserves should be maintained in order that the group should be able to operate for 6 months following a serious failure of funding or other event endangering the ability of the group to survive.
Reserves will be maintained to pay for salary costs, mortgage payments, other running costs and statutory redundancy payments. Based on these calculations we will need £97,000 in reserves.
Our reserves are currently much lower than our policy due to the purchase of the building. We plan to build our reserves back up by reducing expenditure where possible, increase fundraising activity and rental income.
This policy will be reviewed on an annual basis.
3
## Early Years @ Lightcliffe
## Trustees' report (continued) for the year ended 31 August 2020
## **Coronavirus impact statement**
There has been a massive operational impact to us as an organisation due to Covid-19, particularly over the period March to June 2020 during Lockdown one. During this period, we remained open to vulnerable children and those of key workers however our attendance numbers, and hence our income, were severely reduced. For all eligible Pre-school children on our register, we continued to receive our 15/30 hours government funding, regardless of whether these children were actually attending during this period. Throughout this semi-closure period many of our loyal families continued to make voluntary payment donations to help protect the longevity of the organisation.
For the period June to August 2020 we were allowed to re-open to all Pre-school children. This resulted in a much greater uptake of places and increased collection of private fees. Also, throughout this period we continued to receive our 15/30 hours government funding for all eligible Pre-school children on register. Throughout the school summer holidays our successful holiday club was open to all children and proved to be very popular, from which the fees collected helped to off-set the lost revenue from the previous term.
To mitigate our loss of fees revenue we negotiated with our landlord to waiver our rent for April 2020, a 50% reduction on rent for May 2020 and a 25% reduction on rent for June 2020. We placed as many staff members as possible on furlough leave and operated on skeleton staff on a rota basis. We also reduced any expenditure where possible, limiting to only essentials.
The trustees have reassessed the charity’s ability to continue for at least 12 months from the date that the accounts are approved and conclude that no material uncertainties exist that cast significant doubt on the charity’s ability to meet its liabilities as they fall due.
Signed on behalf of the board of trustees:
Signed: S Hey Date: 16 March 2021
Name: Sarah Hey (Trustee)
4
## Early Years @ Lightcliffe
## Independent examiner's report to the trustees of Early Years @ Lightcliffe
I report to the charity trustees on my examination of the accounts of the Trust for the year ended 31 August 2020, which are set out on pages 6 to 9.
## **Responsibilities and basis of report**
As the charity trustees 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 as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the 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 charity as required by section 130 of the Act; or 2 the accounts do not accord with those records.
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.
Signed: …………………………………… Name: Helen Galvin
Relevant professional qualification or body: FCCA
Date: 6 May 2021
## **West Yorkshire Community Accounting Service**
Stringer House 34 Lupton Street Leeds LS10 2QW
5
## Early Years @ Lightcliffe
## Receipts and payments account for the year ended 31 August 2020
|Notes
2020
Unrestricted
funds
£
**Receipts**
Grants
(2)
5,000
Fees
68,316
Fundraising
3,536
Rental income
588
Bank interest
144
**Total receipts**
77,584
**Payments**
Salaries and NI
(3)
32,318
Casual staff
33
Payroll fees
524
Purchase of building
120,000
Rent
5,053
Educational materials, activities and trips
721
Food
1,069
Stationery and administration fees
484
Telephone
345
Accountancy and independent examination
244
Training
172
Uniforms
38
Advertising
-
Repairs and maintenance
349
Fundraising expenses
54
Bank charges
92
Grant repayment
112
Donations
-
Staff and committee gifts
-
Cleaning
134
Equipment
272
Membership and subscriptions
297
Legal and professional fees
17,013
DBS checks
60
Insurance
696
Mortgage interest repayments
415
Utilities
78
**Total payments**
180,573
(102,989)
**Fund balances brought forward**
125,322
**Fund balances carried forward**
(4)
22,333
**Net (payments) / receipts**|2020
Restricted
funds
£
85,451
-
-
-
-
85,451
68,255
50
786
-
7,580
1,565
1,603
726
518
367
258
56
-
523
81
139
169
-
-
201
407
445
-
89
1,045
623
118
85,604
(153)
13,063
12,910|2020
Total
funds
£
90,451
68,316
3,536
588
144
163,035
100,573
83
1,310
120,000
12,633
2,286
2,672
1,210
863
611
430
94
-
872
135
231
281
-
-
335
679
742
17,013
149
1,741
1,038
196
266,177
(103,142)
138,385
35,243|2019
Total
funds
£
95,668
62,448
955
-
138
159,209
100,994
1,336
1,230
-
16,875
5,909
3,707
940
828
575
1,257
201
224
6,888
-
170
-
22
550
-
-
683
-
60
-
-
-
142,449
16,760
121,625
138,385|
|---|---|---|---|
6
## Early Years @ Lightcliffe
## Statement of assets and liabilities
|as at 31 August 2020
2020
Unrestricted
£
**Cash funds**
Cash at bank
22,321
Cash in hand
12
**Total cash funds**
22,333
**Other monetary assets**
Fees outstanding at the year end
Prepaid property insurance to 30 June 2021
**Assets retained for the charity's own use**
Christ Church Centre Building (Purchased June 2020 £400,000)
Computer and printer
Desk and office chairs
2 Filing cabinets
Laminator
3 Display boards
Various storage containers
Television
Various toys and other play equipment
**Liabilities**
CMBC - Autumn term funding received in advance
NEST pension
HMRC
August salaries paid in September
Independent examination
**Long-term Liabilities**
Unity Trust Bank 20 year loan for building purchase
(Effective from June 2020)|2020
Restricted
£
12,910
-
12,910|2020
Total
£
35,231
12
35,243
£
2,646
1,355
4,001
£
12,604
287
609
2,483
672
16,654
280,000|2019
Total
£
138,144
241
138,385|
|---|---|---|---|
## **Approval of the accounts**
The financial statements were approved by the board of trustees on
Date: 16 March 2021
Signed: Sarah Hey (Trustee)
Name: S Hey
7
## Early Years @ Lightcliffe
## Notes to the accounts
## for the year ended 31 August 2020
## **1 Accounting policies**
## **Basis of accounting**
The trustees have taken advantage of section 133 of the Charities Act 2011 and have prepared the accounts on a receipts and payments basis.
There has been no change to the accounting policies since last year.
No changes have been made to the accounts for previous years.
## **Taxation**
As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
8
## Early Years @ Lightcliffe
## Notes to the accounts continued
## for the year ended 31 August 2020
|**2 Grants**
CMBC - Family Services
HMRC - Coronavirus Job Retention Scheme
Tesco Bags of Help COVID-19 Communities Fund
CMBC - Small Business Grant Fund
**3 Staff costs and numbers**
Gross salaries
Social security costs
Employment allowance
Pensions|2020
Unrestricted
funds
£
-
-
-
5,000
5,000|2020
Restricted
funds
£
75,714
9,237
500
-
85,451|2020
Total
funds
£
75,714
9,237
500
5,000
90,451
2020
£
98,367
3,706
(2,941)
1,441
100,573|2019
Total
funds
£
95,668
-
-
-
95,668
2019
£
98,149
4,831
(3,132)
1,146
100,994|
|---|---|---|---|---|
The average number employees during the year was 10 (2019: 8.8). There were no employees with emoluments above £60,000.
||**Defined contribution pension scheme**|2020|2019|
|---|---|---|---|
||Costs of the scheme to the charity for the year|£
1,441|£
1,146|
||Amount of any contributions outstanding at the year|end
287|358|
||Amount of any contributions prepaid at the year end|-|-|
|**4 **|**Restricted funds**|Balance b/f
Incoming
Outgoing
Balance c/f||
||CMBC - Early Education Funding|£
£
£
£
13,063
74,904
75,364
12,603||
||CMBC - DCATCH|-
810
810|-|
||HMRC - Coronavirus Job Retention Scheme|-
9,237
9,237|-|
||Tesco Bags of Help COVID-19 Communities Fund|-
500
193|307|
|||13,063
85,451
85,604
12,910||
||**Fund name**|**Purpose of restriction**||
||CMBC - Early Education Funding|For the supply of free early years provision for 2 to 4|year|
|||olds||
||CMBC - DCATCH|To enhance staff ratios during sessions attended by a||
|||child with disabilities or additional needs||
||HMRC - Coronavirus Job Retention Scheme|For staff who have been furloughed due to Covid-19||
||Tesco Bags of Help COVID-19 Communities Fund|To purchase a Writers Retreat Shed and educational resources||
## **5 Trustee expenses**
No trustee received any expenses during this year or the previous year.
## **6 Trustee remuneration and benefits**
No trustee received any remuneration or benefit during this or the previous year.
9