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2021-05-31-accounts

North Leeds Community Nursery

Charity number 1047355

A company limited by guarantee number 03046944

Annual Report and Financial Statements

for the year ended 31 May 2021

North Leeds Community Nursery

Annual Report and Financial Statements for the year ended 31 May 2021

Contents Page
Trustees' report 2 to 5
Examiner's report 6
Statement of financial activities 7
Balance sheet 8
Notes to the accounts 9 to 13

Prepared by West Yorkshire Community Accounting Service

1

North Leeds Community Nursery

Trustees' report for the year ended 31 May 2021

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

Name Position Dates Simon Campbell-Skelling Chair until 25 November 2020 Nick McLoughlin Treasurer Sarah Frost Resigned 25 November 2020 Victoria Eustace Chair Claire Eatough Robert Halstead Secretary Elizabeth Austen Appointed 25 November 2020 Claire Ewart Appointed 25 November 2020 Charity number 1047355 Registered in England and Wales Company number 03046944 Registered in England and Wales Registered and principal address Bankers Foxcroft Close Virgin Money Santander UK plc Leeds Bering House 2 Triton Square West Yorkshire Mariner Court Regent's Place LS6 3NT Clydebank Business Park London Clydebank. G81 2NR NW1 3AN

Independent examiner

Simon Bostrom FCIE West Yorkshire Community Accounting Service Stringer House 34 Lupton Street Leeds LS10 2QW

Structure, governance and management

The charity is a company limited by guarantee and was incorporated on 18 April 1995. It is governed by a memorandum and articles of association. The liability of the members in the event of the company being wound up is limited to £1.

Method of recruitment and appointment of trustees

The trustees of the charity are also the directors for the purposes of company law and are appointed by the members at the AGM.

Objectives and activities

The charity's objects

a) To advance the education of children and in particular those children below compulsory school age from those areas of Leeds known as Burley, Headingley, and Woodhouse by the promotion and provision of day care facilities for such children which stimulate their growth and development through play;

b) In the interests of social welfare, to promote and provide recreational facilities and other leisure time activities for children so that their conditions of life may be improved.

The charity's main activities

The Charity operates a nursery for children under 7 years of age.

2

North Leeds Community Nursery

Trustees' report (continued) for the year ended 31 May 2021

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 providing early years education and development.

Achievements and performance

OVERVIEW OF THE NURSERY YEAR

The year from June 2020 to May 2021 has as ever been a busy one but also a time of change, uncertainty and one that will never be forgotten.

Staffing - There have been small changes in the staffing structure, with recruitment needs relatively low. We had two permanent part time staff members leave the nursery to embark on new careers. To replace these members we recruited one new Senior staff member to work in the Sunshine room and an apprentice to work in the Rainbow room. We also recruited a new nursery cook.

In June the nursery re-opened after being closed for two months due to Covid-19. The nursery initially opened three days per week, working with a skeleton staff, gradually all children and staff returned and the nursery resumed full service by August.

Qualifications We continue to use Noodle Now the online learning platform. Courses over the year have been used to develop staff learning and knowledge in areas such as inclusion, equality and diversity, food safety and safeguarding children. Staff training days were utilised to catch up on observations, re-organising and updating the layout of the rooms and Inclusion and Equality webinars.

Improvements

The biggest improvements the nursery made this year was having the large trees in the back garden removed and installing three new sheds and having new fencing erected around the perimeter.

Because the sheds were more secure than the previous one we were able to invest in new outdoor resources, some of these being water trays, sand pits, and willow domes amongst others.

A new cooker, fridge and freezer were also purchased for the kitchen.

Social events and parental involvement

Unfortunately due to Covid-19 all social events were cancelled. We were able to conduct online Dancing Tots sessions where the parents and children were able to interact with one another. Famly, the nursery online parental platform proved to be a valued tool in keeping parents informed of what their children were doing in the nursery and keeping parents updated about any Covid-19 changes etc.

Lease of the Land

We continue to talk with Leeds City Council with regards to the land we rent. Our ideal option is to stay situated on the site of Becketts Park, buy the land and construct a new purpose built nursery. We continue to look for other premises/land for sale that would make a suitable location for the nursery.

Fee increase

Due to the circumstances of the year it was agreed by the Management and Committee that a fee increase would not be implemented.

Budgets

Monthly budgets remained in place for the rooms to access resources and materials. The nursery did invest in further resources to support the 'Bubbles' that had been created in the Rainbow room and cleaning costs increased due to higher cleaning routines that needed to be implemented.

Marketing and Publicity

Our main source of advertising during the year was by word of mouth. It was agreed by the management and committee a new website would be devised in 2021.

3

North Leeds Community Nursery

Trustees' report (continued) for the year ended 31 May 2021

Achievements and performance (continued)

Fundraising and Charitable events

Fundraising events were limited this year and the focus was to raise funds for other charities as opposed to the nursery. The Rainbow room raised a staggering (£2,500) to support Prostate Cancer. The children took part in various sporting events to achieve their fundraising goals.

Future plans for the nursery

The future of the nursery looks promising in receiving regular enquiries and bookings for places within the nursery.

The front garden will soon need some attention to it in regards to new planters and a repaint.

We continue to discuss at committee meetings the desire to purchase the land we currently rent. We would like to build our own purpose built, eco friendly nursery.

Financial review

It has been another successful financial year for the nursery, despite various disruptions caused by the Coronavirus. The nursery achieved a net surplus of £10,703, increasing the charities unrestricted reserves to £172,137.

Nursery fee parent income increased by £12,617 compared to 2019/2020 (the nursery was closed for 2 months in 2019/2020 due to the Coronavirus). There were fewer 2 & 3 year funded places in 20/21 reducing the government funding for funded places by £7,958 compared to the previous year. The nursery was again successful in securing a government grant from the furlough scheme for staff costs and in addition, funding from Leeds City Council’s Discretionary fund and income from the nursery’s insurers for loss of income due to the Coronavirus.

Overall expense was £16,050 more in 2020/2021 compared to the previous year. Although savings were made in staffing (£4,439), and food costs (£7,318), there was an increase in temporary staff costs, (reflected in the increase in professional fees), equipment and materials and cleaning costs to meet additional Coronavirus measures implemented.

The Committee has assessed the nursery’s financial position going forward and do not foresee any material impact on the organisation. They are confident the nursery can be treated as a going concern. The Committee look forward to achieving another successful financial year in 2021/2022.

Reserves policy

The charity's free reserves, excluding fixed assets, at the year end were £172,137.

The Trustees have examined the charity's requirements for reserves whilst considering the main risks to the organisation. It has established a policy whereby the reserve fund should cover six months of annual expenditure.

4

North Leeds Community Nursery

Trustees' report (continued) for the year ended 31 May 2021

Statement of trustees' responsibilities

The trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees report and the financial statements in accordance with the applicable law and UK Accounting Standards.

Company law requires the trustees to prepare financial accounts for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and estimates that are reasonable and prudent;

state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the accounts on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP (FRS102)), and in accordance with the special provisions of the Companies Act 2006 relating to small companies.

Signed on behalf of the board of trustees on …………..……...…….

Signed: ………………..…………. (Trustee)

Name: ……………..…..………….

5

North Leeds Community Nursery

Independent examiner's report to the trustees of North Leeds Community Nursery

I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 May 2021, which are set out on pages 7 to 13.

Responsibilities and basis of report

As the charity's trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charitable company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act.

I confirm that I am qualified to undertake the examination because I am a member of ACIE 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:

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: Simon Bostrom FCIE

Date: …………………….

West Yorkshire Community Accounting Service

Stringer House 34 Lupton Street Leeds LS10 2QW

6

North Leeds Community Nursery

Statement of Financial Activities

(including summary income and expenditure account) for the year ended 31 May 2021

Notes
2021
Unrestricted
funds
£
Income from:
Government funded places
118,990
Private funded places
177,301
Grants
(2)
5,000
Donations and fundraising
376
Bank interest
109
Sales
-
Insurance
6,183
Total income
307,959
Expenditure on:
Salaries and NIC
(3)
206,303
Rent and rates
10,645
Insurance and subscriptions
7,712
Utilities
6,050
Equipment and materials
7,560
General premises costs
6,363
Cleaning
10,482
Food and household
13,329
Legal and professional
19,766
Telephone and internet
891
Postage and other office costs
3,127
Training
629
Advertising and publicity
23
Bad debts written off
188
Other expenditure
10
Independent examination
1,248
Depreciation
2,383
Recruitment
547
Total expenditure
297,256
Net income / (expenditure)
10,703
Fund balances brought forward
184,904
Fund balances carried forward
(4)
195,607		 2021
Restricted
funds
£
-
-
8,681
-
-
-
-
8,681
7,681
-
-
-
1,000
-
-
-
-
-
-
-
-
-
-
-
-
-
8,681
-
-
-		 2021
Total
funds
£
118,990
177,301
13,681
376
109
-
6,183
316,640
213,984
10,645
7,712
6,050
8,560
6,363
10,482
13,329
19,766
891
3,127
629
23
188
10
1,248
2,383
547
305,937
10,703
184,904
195,607		 2020
Total
funds
£
126,948
164,684
21,521
4,730
470
502
-
318,855
218,423
9,699
7,154
(2,835)
4,915
7,066
6,627
20,647
6,954
895
2,616
991
640
759
301
1,224
2,684
1,127
289,887
28,968
155,936
184,904

All incoming resources and resources expended derive from continuing activities.

7

North Leeds Community Nursery

Balance sheet

as at 31 May 2021
2021
Unrestricted
£
Fixed assets
Tangible assets
(5)
23,470
Total fixed assets
23,470
Current assets
Debtors and prepayments
(6)
9,802
Cash at bank and in hand
192,779
Total current assets
202,581
Current liabilities:
amounts falling due within one year
Creditors and accruals
(7)
30,444
Total current liabilities
30,444
Net current assets / (liabilities)
172,137
Net assets
195,607
Funds
Unrestricted funds
195,607
Restricted funds
-
Total funds
195,607		 2021
Restricted
£
-
-
-
-
-
-
-
-
-
-
-
-		 2021
Total
£
23,470
23,470
9,802
192,779
202,581
30,444
30,444
172,137
195,607
195,607
-
195,607		 2020
Total
£
13,673
13,673
9,273
177,850
187,123
15,892
15,892
171,231
184,904
184,904
-
184,904

For the year ending 31 May 2021 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476. The trustees (who also the directors for the purposes of company law) acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and with FRS 102 (effective January 2019).

The financial statements were approved by the board of trustees on …………..……...…….

Signed: ……………...………….…. (Trustee)

Name: ……………..…..………….

8

North Leeds Community Nursery

Notes to the accounts

for the year ended 31 May 2021

1 Accounting policies

Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) and with the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102. There has been no change to the accounting policies since last year. No changes have been made to the accounts for previous years.

Going concern

The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.

Grants and donations

Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.

Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.

Expenditure and liabilities

Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.

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.

Tangible fixed assets

Tangible fixed assets with an economic life more than one year are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a reducing balance basis at 15% per annum.

Pensions

The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.

9

North Leeds Community Nursery

Notes to the accounts continued

for the year ended 31 May 2021

1 Accounting policies (continued)

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.

Leases

Rents under operating leases are charged on a straight line basis over the lease term or to an earlier date if the lease can be determined without financial penalty.

2 Grants
Leeds City Council (LCC)
Seedlings Foundation
Job Retention Scheme		 2021
Unrestricted
funds
£
5,000
-
-
5,000		 2021
Restricted
funds
£
-
1,000
7,681
8,681		 2021
Total
funds
£
5,000
1,000
7,681
13,681		 2020
Total
funds
£
500
-
21,021
21,521
3 Staff costs and numbers
Gross salaries
Social security costs
Pensions		 2021
£
201,598
8,839
3,547
213,984		 2020
£
212,862
2,045
3,516
218,423

The average number employees during the year was 11.8, being an average of 10.5 full time equivalent (2020: 13.8, 12.4 FTE). There were no employees with emoluments above £60,000.

Defined contribution pension scheme
Costs of the scheme to the charity for the year
Amount of any contributions outstanding at the year end
4 Restricted funds
Balance b/f
Incoming
£
£
Seedlings Foundation
-
1,000
Job Retention Scheme
-
7,681
-
8,681		 Outgoing
£
1,000
7,681
8,681		 2021
£
3,547
665
Transfers
£
-
-
-		 2020
£
3,516
653
Balance c/f
£
-
-
-

Fund name

Purpose of restriction

Seedlings Foundation Job Retention Scheme

Initially to match fund an interactive table, funder agreed alteration of purpose to use for outdoor play equipment Towards salary costs of furoloughed staff

10

North Leeds Community Nursery

Notes to the accounts continued

for the year ended 31 May 2021

5
6
**7 **		 Tangible assets
Cost
At 1 June 2020
Additions
At 31 May 2021
Depreciation
At 1 June 2020
Depn reversed re. disposals
Charge for year
At 31 May 2021
Net book value
At 31 May 2021
At 31 May 2020
Debtors and prepayments
Debtors
Prepayments
Creditors and accruals
Deferred income
Creditors
Deposits held
Accruals
Credit card		 £
-
10,392
10,392
-
-
286
286
10,106
-
Furniture
and fittings		 £
47,751
1,788
49,539
34,078
-
2,097
36,175
13,364
13,673
2021
£
7,165
2,637
9,802
2021
£
2,224
10,723
5,825
9,799
1,873
30,444
Office
equipment		 Total
£
47,751
12,180
59,931
34,078
-
2,383
36,461
23,470
13,673
2020
£
6,854
2,419
9,273
2020
£
1,000
1,609
6,425
6,858
-
15,892

11

North Leeds Community Nursery

Notes to the accounts continued

for the year ended 31 May 2021

8 Related party transactions

Trustee expenses

No trustee received any expenses during this year or the previous year.

Trustee remuneration and benefits

No trustee received any remuneration or benefit during this or the previous year.

Remuneration and benefits received by key management personnel

The key management personnel of the charity include the trustees and Chief Officer. The total employee benefits received by the Chief Officer were £24,769 (previous year: £24,880).

No trustee received any remuneration or benefit in this capacity during this or the previous year.

9 Operating leases

Within one year
In the second to fifth years inclusive
Expected future minimum lease payments over the remaining
life of the lease, analysed into the period in which the
commitment falls due:		 2021
£
8,330
-
8,330		 2020
£
10,667
8,000
18,667

12

North Leeds Community Nursery

Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 May 2021

2021
2020
Unrestricted Unrestricted
funds
funds
£
£
Income
Government funded places
118,990
126,948
Private funded places
177,301
164,684
Grants
5,000
-
Donations and fundraising
376
4,730
Bank interest
109
470
Sales
-
502
Insurance
6,183
-
Total income
307,959
297,334
Expenditure
Salaries and NIC
206,303
197,402
Rent and rates
10,645
9,699
Insurance and subscriptions
7,712
7,154
Utilities
6,050
(2,835)
Equipment and materials
7,560
4,915
General premises costs
6,363
7,066
Cleaning
10,482
6,627
Food and household
13,329
20,147
Legal and professional
19,766
6,954
Telephone and internet
891
895
Postage and other office costs
3,127
2,616
Training
629
991
Advertising and publicity
23
640
Bank charges
-
-
Bad debts written off
188
759
Other expenditure
10
301
Independent examination
1,248
1,224
Depreciation
2,383
2,684
Recruitment
547
1,127
Total expenditure
297,256
268,366
Net income / (expenditure)
10,703
28,968
Fund balances brought forward
184,904
155,936
Fund balances carried forward
195,607
184,904		 2021
Restricted
funds
£
-
-
8,681
-
-
-
-
8,681
7,681
-
-
-
1,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,681
-
-
-		 2020
Restricted
funds
£
-
-
21,521
-
-
-
-
21,521
21,021
-
-
-
-
-
-
500
-
-
-
-
-
-
-
-
-
-
-
21,521
-
-
-		 2021
Total
funds
£
118,990
177,301
13,681
376
109
-
6,183
316,640
213,984
10,645
7,712
6,050
8,560
6,363
10,482
13,329
19,766
891
3,127
629
23
-
188
10
1,248
2,383
547
305,937
10,703
184,904
195,607		 2020
Total
funds
£
126,948
164,684
21,521
4,730
470
502
-
318,855
218,423
9,699
7,154
(2,835)
4,915
7,066
6,627
20,647
6,954
895
2,616
991
640
-
759
301
1,224
2,684
1,127
289,887
28,968
155,936
184,904

13