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2022-05-31-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 2022

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North Leeds Community Nursery

Annual Report and Financial Statements

for the year ended 31 May 2022

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 12

Prepared by West Yorkshire Community Accountancy Service CIO

1

North Leeds Community Nursery

Trustees' report for the year ended 31 May 2022

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 Victoria Eustace Chair Claire Eatough Robert Halstead Secretary Elizabeth Austen Claire Ewart 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 Accountancy Service CIO 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.

2

North Leeds Community Nursery

Trustees' report (continued) for the year ended 31 May 2022

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.

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

The year from June 2021 to May 2022 has been a busy year, with changes implemented that strive to make the nursery the best it possibly can be.

Staffing

There have been small changes in the staffing structure. Three staff members left the nursery to embark on new careers. One staff member went on maternity leave and due to personal circumstances decided to move back to their home town. Recruitment in the childcare sector has been exceptionally hard this year. The nursery has been lucky enough to employ a bank staff member, however we are still trying to recruit two permanent full time staff members.

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 providing challenging activities, health and nutrition, safeguarding children. Staff training days were utilised to catch up on observations, re-organising and updating the layout of the rooms and in depth safeguarding discussions. The days were also used to discuss and implement the revised Early Years Foundation Stage.

Improvements

The biggest improvements the nursery made this year was having 'the secret garden' erected in the Sunshine Room. This is an additional outdoor space for the children to access, this also provides additional ventilation in the room which has been essential since Covid-19.

The Rainbow room purchased a variety of outdoor wheeled toys, ranging from scooters, trikes, balance bikes and go-carts, the children thoroughly enjoy whizzing around the garden on these.

The areas of provision the rooms offer the children are consistently being assessed to ensure the children are getting the best out of the areas they possibly can.

The nursery invested in a new website.

Social events and parental involvement

Due to the ongoing spread of infection of Covid-19 the annual BBQ did not go ahead. We were however able to have the nursery annual picnic at Kirkstall Abbey. This was a great turn out and it was lovely to see so many families in attendance.

3

North Leeds Community Nursery

Trustees' report (continued) for the year ended 31 May 2022

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 Beckett 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. Due to time constraints this year the nursery has not been as proactive in looking for alternative land as in previous years.

Fee increase

A 2% fee increase was implemented in September. We kept the increase as low as possible to ensure that we could support families in still being able to access affordable childcare.

Budgets

Monthly budgets remain in place for the rooms to access resources and materials.

Cleaning costs remained higher due to the ongoing additional cleaning of the nursery, essential to prevent the spread of Covid-19.

Marketing and Publicity

The new website went 'live' in November 21. The website has generated an increase in enquiries for the nursery, along with regular show rounds and uptake in places.

Fundraising and Charitable events .

Over the course of the year the nursery supported Mission Christmas, The British Heart Foundation and Dementia UK.

Future plans for the nursery

The future of the nursery looks promising in receiving regular enquiries and bookings for places within the nursery. The nursery continues to have a waiting list in place due to the high demand.

This year we would like to have the whole nursery decorated. This will need to be done in stages and on weekends to ensure we can continue to remain open whilst the works are being carried out.

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

The nursery achieved a net surplus of £14,322, increasing the charities unrestricted reserves to £186,013.

There was an increase in income of £21,247 compared to the previous year. Nursery fee parent income increased by £52,507 and government funded income for the 2 and 3 year olds decreased by £16,196. Grant funding and insurance claim income were less as they were specifically related to Covid in the previous year.

Overall expense was £17,628 higher compared to the previous year. There was a general increase in most areas, in particular staff, temporary staff, staff recruitment, food, rent and general repairs. (Nursery places were restricted and a lot lower at the beginning of the previous year due to Covid, reducing some of the costs).

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 2022/2023.

Reserves policy

The charity's free reserves, excluding fixed assets, at the year end were £186,013.

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. This would equate to approximately £160k.

4

North Leeds Community Nursery

Trustees' report (continued) for the year ended 31 May 2022

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.

Approved by 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 2022, which are set out on pages 7 to 12.

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 fellow 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 fellow 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 Accountancy Service CIO

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 2022

Notes
Income from:
Grants and donations
(2)
Government funded places
Private funded places
Donations and fundraising
Bank interest
Insurance
Total income
Expenditure on:
Salaries and NIC
(3)
Rent and rates
Insurance and subscriptions
Utilities
Equipment and materials
General premises costs
Cleaning
Food and household
Legal and professional
Telephone and internet
Postage and other office costs
Training
Advertising and publicity
Bad debts written off
Other expenditure
Independent examination
Website
Depreciation
Recruitment
Total expenditure
Net income / (expenditure)
Transfers between funds
Net movement in funds
Fund balances brought forward
Fund balances carried forward		 2022
Total
funds
£
5,184
102,794
229,808
101
-
-
337,887
218,962
12,840
7,003
(3,114)
7,809
8,703
11,589
20,243
23,598
1,114
1,313
1,105
90
2,019
100
1,273
1,548
3,784
3,586
323,565
14,322
-
14,322
195,607
209,929		 2021
Total
funds
£
13,681
118,990
177,301
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
-
10,703
184,904
195,607

All incoming resources and resources expended derive from continuing activities.

7

North Leeds Community Nursery

Balance sheet

as at 31 May 2022

as at 31 May 2022
Fixed assets
Tangible assets
(4)
Total fixed assets
Current assets
Debtors and prepayments
(5)
Cash at bank and in hand
Total current assets
Current liabilities:
amounts falling due within one year
Creditors and accruals
(6)
Total current liabilities
Net current assets / (liabilities)
Net assets
Funds
Unrestricted funds
Total funds		 2022
Total
£
23,916
23,916
6,469
202,067
208,536
22,523
22,523
186,013
209,929
209,929
209,929		 2021
Total
£
23,474
23,474
9,802
192,779
202,581
30,444
30,444
172,137
195,611
195,607
195,607

For the year ending 31 May 2022 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 2022

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 receipt.

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

Notes to the accounts continued

North Leeds Community Nursery

for the year ended 31 May 2022

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 and donations
Conflux Digital
Job Retention Scheme
Leeds City Council (LCC)
Seedlings Foundation
Other donations
3 Staff costs and numbers
Gross salaries
Social security costs
Employment allowance
Pensions		 2022
Total
funds
£
5,000
-
-
-
184
5,184
2022
£
205,096
14,911
(4,000)
2,955
218,962		 2021
Total
funds
£
7,681
5,000
1,000
13,681
2021
£
201,598
8,839
-
3,547
213,984

The average number of employees during the year was 11.9, being an average of 11 full time equivalent (2021: 10.2, 9.2 FTE). There were no employees with emoluments above £60,000.

Defined contribution pension scheme 2022 2021
£ £
Costs of the scheme to the charity for the year 2,955 3,547
Amount of any contributions outstanding at the year end 472 665

10

North Leeds Community Nursery

Notes to the accounts continued

for the year ended 31 May 2022

4
5
**6 **		 Tangible assets
Cost
At 1 June 2021
Additions
At 31 May 2022
Depreciation
At 1 June 2021
Charge for year
At 31 May 2022
Net book value
At 31 May 2022
At 31 May 2021
Debtors and prepayments
Debtors
Prepayments
Other debtors
Creditors and accruals
Creditors
Accruals
Deferred income (see note below for analysis)
Taxation and social security
Credit Card
Other creditors		 £
10,392
2,000
12,392
286
1,667
1,953
10,439
10,106
Furniture &
Fittings		 £
49,543
2,226
51,769
36,175
2,117
38,292
13,477
13,368
2022
£
3,815
2,654
-
6,469
2022
£
8,684
2,209
-
2,012
2,421
7,197
22,523
Office
equipment		 Total
£
59,935
4,226
64,161
36,461
3,784
40,245
23,916
23,474
2021
£
6,031
2,637
1,134
9,802
2021
£
8,815
9,799
2,224
1,908
1,873
5,825
30,444

7 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.

8 Operating leases

Within one year
In the second to fifth years inclusive
Over five years from the balance sheet date
Expected future minimum lease payments over the remaining life of the		 2022
£
-
-
-
-		 2021
£
8,330
-
-
8,330

11

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 2022

2022
2021
Unrestricted Unrestricted
funds
funds
£
£
Income
Grants and donations
5,184
5,000
Government funded places
102,794
118,990
Private funded places
229,808
177,301
Donations and fundraising
101
376
Bank interest
-
109
Insurance
-
6,183
Total income
337,887
307,959
Expenditure
Salaries and NIC
218,962
206,303
Rent and rates
12,840
10,645
Insurance and subscriptions
7,003
7,712
Utilities
(3,114)
6,050
Equipment and materials
7,809
7,560
General premises costs
8,703
6,363
Cleaning
11,589
10,482
Food and household
20,243
13,329
Legal and professional
23,598
19,766
Telephone and internet
1,114
891
Postage and other office costs
1,313
3,127
Training
1,105
629
Advertising and publicity
90
23
Bad debts written off
2,019
188
Other expenditure
100
10
Independent examination
1,273
1,248
Website
1,548
-
Depreciation
3,784
2,383
Recruitment
3,586
547
Total expenditure
323,565
297,256
Net income / (expenditure)
14,322
10,703
Fund balances brought forward
195,607
184,904
Fund balances carried forward
209,929
195,607		 2022
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2021
Restricted
funds
£
8,681
-
-
-
-
-
8,681
7,681
-
-
-
1,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,681
-
-
-		 2022
Total
funds
£
5,184
102,794
229,808
101
-
-
337,887
218,962
12,840
7,003
(3,114)
7,809
8,703
11,589
20,243
23,598
1,114
1,313
1,105
90
2,019
100
1,273
1,548
3,784
3,586
323,565
14,322
195,607
209,929		 2021
Total
funds
£
13,681
118,990
177,301
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

12