2020-08-31-accounts

THE LITTLE SUTTON CLUB AND NURSERY SCHOOL

ANNUAL REPORT AND ACCOUNTS

YEAR ENDED 31 AUGUST 2020

Charity No. 1047535

Charity no. 1047535

THE LITTLE SUTTON CLUB AND NURSERY SCHOOL

ANNUAL REPORT AND ACCOUNTS

YEAR ENDED 31 AUGUST 2020

CONTENTS

• 3 Report of the trustees

• 8 Independent examiner’s report

• 9 Statement of financial activities

• 10 Balance sheet

• 11 Cash flow statement

• 12 Notes to the accounts

The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

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Report of the trustees for the year ended 31 August 2020

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The trustees present their report and the accounts for the year ended 31 August 2020. The accounts comply with the Charities Act 2011, the charity’s own governing document, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and 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).

Constitution and objects

The Little Sutton Club and Nursery School is an individual charity operating under a Pre-School Learning Alliance constitution, which was adopted on 24 April 1995. It was registered as a charity under number 1047535 on 27 June 1995.

The objects of the charity are to enhance the development and education of children primarily under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups. The charity also provides childcare for children of primary school age before and after school hours and during the school holidays.

The charity’s aims are to provide high quality childcare and education at a reasonable cost to parents in order to be accessible to children from a wide a range of backgrounds, to help vulnerable families in the local community and to support parents, allowing them to pursue employment, training or other opportunities. To achieve this, the charity offers high quality care, play and learning facilities whilst fees are kept as low as possible and monitored regularly against those of other local facilities. The charity offers support and advice to parents, who are encouraged at all times to discuss their child’s development with staff. Parents are also invited to become more actively involved in the running of the facilities by serving as trustees of the charity.

Trustees and governance

The charity is governed by a Board of Trustees, which is responsible for ensuring that it complies with its aims and is properly managed. The Board of Trustees meets several times a year with sub-committee meetings also held when considered appropriate. The charity’s constitution requires that at least 60% of the trustees shall at the time of election be parents or guardians of children in groups run by the charity. Applications for trusteeship are sought by advertisement among existing parents and guardians. Trustees are appointed by the Board of Trustees and elected for one year at the Annual General Meeting. Retiring trustees are eligible for re-election unless they have already served for six consecutive years.

The day-to-day operations of the charity are delegated to a management team under the leadership of the setting manager, who attends trustees’ meetings to update the trustees on operation and finance matters together with any developments and issues arising. The trustees retain responsibility for determining the strategic direction of the charity, the level of fees to be charged to parents and for reviewing and setting the salaries of the management team as well as the salary ranges applicable to other staff. Employee remuneration is reviewed annually by the trustees with reference to inflation indices and national minimum wage increases.

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Report of the trustees for the year ended 31 August 2020

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The trustees who served during the year were:

Mr M Moran (Chair) Mrs C Wiseman (Secretary) Mr H Morris (Treasurer) Mr A Smith

Other names

The Little Sutton Club and Nursery School also operates under the name of Little Sutton Nursery and Kids Club. The facility for children up to the age of two operates under the name of Little Sutton Nursery Harvest Fields.

Other legal and administrative information

Charity registered number:	1047535
Addresses:	Little Sutton Nursery and Kids Club
	Worcester Lane
	Four Oaks
	Sutton Coldfield
	West Midlands
	B75 5NL
	Little Sutton Nursery Harvest Fields
	Harvest Fields Centre
	Harvest Fields Way
	Sutton Coldfield
	West Midlands
	B75 5TJ
Independent examiner:	Zoe Walsh FCCA
	Harwoods Chartered Accountants
	1 Trinity Place
	Midland Drive
	Sutton Coldfield
	B72 1TX
Bankers:	HSBC Bank plc
	289 Lichfield Road
	Four Oaks
	Sutton Coldfield
	West Midlands
	B74 4BY

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

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Report of the trustees for the year ended 31 August 2020 (continued)

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Review of activities

The charity has continued to provide pre-school education and childcare as well as facilities and care for schoolchildren outside normal school hours. The group operates a pre-school nursery for 2 to 4-year-olds, a before and after school club during term-time and a holiday club which is open to 3 to 11-year-olds from the wider community, all operating from the unit at Little Sutton Primary School.

The group also runs a unit in the nearby Harvest Fields Centre for the provision of childcare for up to 21 children up to the age of 3, operating under the name of Little Sutton Nursery Harvest Fields. This facility is very much needed in the local area and children are able to progress smoothly from here into the long-established nursery premises at Little Sutton Primary School.

The group has maintained its close liaison with Little Sutton Primary School during the year. This relationship facilitates the transition from nursery to school and assists the group in supporting families of children in the school who use the group’s services.

The charity’s principal sources of income are fees from parents and Early Education Entitlement (EEE) funding from Birmingham City Council. The emergence of coronavirus in early 2020 had a significant impact on operations in the second half of the year. Total income for the year of £455,058 (2019 - £568,537), all of which is considered to be unrestricted income, represents a decrease of 20% over the previous year, whilst total unrestricted revenue expenditure decreased by 12.4%. Enforced closure of the groups on 20 March 2020 to the vast majority of children resulted in a 41% decrease in parental fee income. Fortunately, EEE funding was received in full for the Spring and Summer Terms, providing a vital boost to the group’s income, together with £43,723 under the Coronavirus Job Retention Scheme. Whilst fully variable costs for items such as food and drink, craft resources and other consumables have decreased in line with the reduced activity, the group has still had to meet fixed costs such as rent and insurance. Where possible, employees were furloughed on a rotational basis, the priority always being the need to maintain adequate staff levels to care for vulnerable children and the children of key workers. In view of the difficulties faced this year, the trustees are satisfied with the financial performance of the charity and its financial position at the end of the year.

The trustees and staff are proud to have maintained the very high standard of care that has always been provided for all age groups, and the success of the group is underpinned by the determination that this quality should never be compromised.

Since the end of the financial year, wider opening of the facilities has been achieved, although social distancing measures mean operating with a reduced capacity. As it will not be possible to reduce operating costs to the same extent, an operational deficit is anticipated again in the year ending 31 August 2021. Fortunately, more than adequate reserves mean the group can withstand the ongoing difficulties and remain a going concern despite the current crisis.

Public benefit

The trustees have complied with their duty under section 17(5) of the Charities Act to have due regard to the guidance on public benefit published by the Charity Commission in carrying out their duties.

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

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Report of the trustees for the year ended 31 August 2020 (continued)

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The Little Sutton Club and Nursery School provides huge public benefit to both children and families of Little Sutton Primary School and the wider community, enhanced by the under-2s facility being the only such facility on or near a large new housing estate. The before and after school club enables parents to work beyond school hours knowing their children are safe and well cared-for on the school site. The facility has provided invaluable services from 8am to 6pm to enable families to take up employment to get them through the current difficult economic climate. The group also performs a significant role within the local child support network, working with other professionals to provide services and support for families in need in the Four Oaks area.

The group offers a number of free places to families in crisis and works closely with local health professionals to take children in care or at risk. The wider community benefits from the holiday club which caters for children up to 11 years of age with the unique advantage of young male as well as female members of staff who organise sporting and other activities.

The not-for-profit status of the group enables all the above to be offered at a very competitive cost to ensure all local families can access such quality care.

Reserves policy

It is the policy of the charity to maintain reserves at a level that would allow it to respond to emergency situations such as the need for temporary relocation of operations in the event of unforeseen loss of the premises from which the charity operates. Reserves also need to be held to cover repairing obligations and potential dilapidations liabilities in respect of the group’s leasehold premises and to ensure that the group is able to continue in the event of a temporary fall in numbers of children attending. The trustees believe that an adequate level of reserves has been maintained during the year for such measures to be achievable if they had proved necessary. In the light of the group’s current activities, the current economic climate and the dependency of many people on the group, the trustees consider an ideal level of reserves to be around £175,000, representing approximately four months’ staff costs, temporary rent of alternative premises, other costs likely to be incurred as a result of such relocation and provision for dilapidations. Excess reserves are used to enhance the facilities and equipment available to the children in the groups run by the charity and are invested in interest-earning bank accounts until required.

Readily realisable reserves, i.e. excluding fixed assets, stock and prepaid expenses, amounted to £338,354 at 31 August 2020. This excess over the desired level arose over several years whilst the trustees were renegotiating the lease of the group’s premises at Little Sutton Primary School and an increase in rent and/or service charge remained uncertain.

No significant projects have been undertaken in the current year. The Trustees are once again in the process of renegotiating leases for both premises, therefore major expenditure is on hold pending their finalisation. Funds have been set aside by the trustees for several projects once the leases have been finalised, including the replacement of equipment for all of the childcare groups operated, bathroom renovations at Little Sutton, as well as advancement of the use of computer technology within the group, with a particular emphasis on ensuring continued GDPR compliance. Further expenditure of approximately £120,000 has been estimated for these projects, following completion of which reserves are expected to settle close to the desired level.

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

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Report of the trustees for the year ended 31 August 2020 (continued)

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Risk management

The trustees regularly examine the major risks to which the charity is exposed and believe that adequate systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks. Principal areas of risk to the group comprise child safety and welfare, staff employment matters, financial sustainability and issues relating to property leases. The trustees believe that the maintenance of reserves described above will provide sufficient resources in the event of adverse conditions.

Trustees' responsibilities statement

The trustees are responsible for preparing the Trustees’ Annual Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these accounts, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP 2019 (FRS 102);

• make judgements and estimates that are reasonable and prudent;

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

• prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

Approved by the trustees and signed on their behalf by:

Mr M Moran Mrs C Wiseman Chair Secretary

25 June 2021

25 June 2021

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

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Independent Examiner’s Report to the Trustees

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I report to the trustees of The Little Sutton Club and Nursery School on my examination of the accounts of the charity for the year ended 31 August 2020 which are set out on pages 9 to 16.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and 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 confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, 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:

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; 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.

Zoe Walsh FCCA Harwoods Chartered Accountants 1 Trinity Place Midland Drive Sutton Coldfield B72 1TX

25 June 2021

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Statement of financial activities for the year ended 31 August 2020

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	Notes	Unrestricted	Unrestricted
		funds	funds
		2020	2019
		£	£
INCOME
Nursery fees		143,222	250,269
Before/after school care fees		68,973	109,653
Holiday club fees		9,878	16,403
Nursery education funding		186,905	191,327
Coronavirus Job Retention Scheme grants		43,723	-
Other income		2,357	885
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TOTAL INCOME		455,058	568,537
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EXPENDITURE
Wages, salaries, national insurance and pension costs	2	355,836	373,813
Agency staff costs		1,172	13,052
Rent, rates, service charges and insurance		29,627	35,236
Dinner money and refreshments		24,020	32,310
Equipment, craft and activities		13,613	27,331
Telephone and internet		2,808	3,606
Computer costs		7,258	5,373
Printing, stationery and advertising		3,693	7,103
Cleaning and hygiene		14,640	17,313
Professional fees		1,370	1,300
Miscellaneous expenses		5,701	10,033
Repairs, renewals and maintenance		7,497	7,129
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TOTAL EXPENDITURE		467,235	533,599
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NET MOVEMENT IN FUNDS		(12,177)	34,938
TOTAL FUNDS BROUGHT FORWARD		355,464	320,526
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TOTAL FUNDS CARRIED FORWARD		343,287	355,464
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The notes on pages 12 to 16 form part of these accounts.

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Balance sheet at 31 August 2020

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	Notes	2020	2020	2019	2019
		£	£	£	£
FIXED ASSETS
Tangible fixed assets	6		-		-
CURRENT ASSETS
Stock		933		1,487
Debtors	7	19,675		16,344
Cash at bank and in hand		381,456		396,379
		–––––––		–––––––
TOTAL CURRENT ASSETS		402,064		414,210
CURRENT LIABILITIES
Creditors – amounts falling due
within one year	8	(58,777)		(58,746)
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NET CURRENT ASSETS			343,287		355,464
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NET ASSETS			343,287		355,464
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FUNDS
Unrestricted funds	9		343,287		355,464
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TOTAL CHARITY FUNDS			343,287		355,464
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Approved by the trustees and signed on their behalf by:

Mr M Moran Mrs C Wiseman Chair Secretary 25 June 2021 25 June 2021

The notes on pages 12 to 16 form part of these accounts.

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Cash flow statement for the year ended 31 August 2020

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	Notes	2020	2019
		£	£
NET CASH FLOW FROM OPERATING ACTIVITIES	11	(15,519)	14,305
CASH FLOW FROM INVESTING ACTIVITIES
Interest received		596	523
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NET INCREASE IN CASH BALANCES		(14,923)	14,828
CASH BALANCES BROUGHT FORWARD		396,379	381,551
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CASH BALANCES CARRIED FORWARD		381,456	396,379
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Cash balances consist of:
Cash at bank and in hand		381,456	396,379
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The notes on pages 12 to 16 form part of these accounts.

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

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Notes to the accounts for the year ended 31 August 2020 (continued)

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1. Summary of significant accounting policies

General information and basis of preparation

The Little Sutton Club and Nursery School is a charity registered in England and Wales. The address of the registered office is given in the other legal and administrative information on page 4 of these accounts. The nature of the charity’s operations and its principal activities are given on page 3.

These accounts have been prepared on a going concern basis and under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The accounts have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), 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), with the Charities Act 2011 and with UK generally accepted accounting practice.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these accounts are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The accounts have been prepared on a going concern basis as the trustees believe that there are no material uncertainties about the charity’s ability to continue as a going concern for at least 12 months from the approval of these accounts.

Fund accounting

All funds held are considered to be unrestricted funds. Unrestricted funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the charity.

Offsetting

There has been no offsetting of income and expenditure or assets and liabilities unless required or permitted by the FRS 102 SORP or FRS 102.

Income

All fees, revenue grants, interest and voluntary income are accounted for gross once the charity has become entitled to the income, it is probable that the income will be received and the income is capable of reliable financial measurement.

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

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Notes to the accounts for the year ended 31 August 2020 (continued)

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1. Summary of significant accounting policies (continued)

Expenditure

All expenditure is accounted for gross on an accruals basis. Irrecoverable VAT is allocated as part of the expenditure to which it relates. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

Operating leases

Rentals payable under operating leases are charged in the Statement of Financial Activities as they are incurred over the period of the leases.

Pension costs

Pension costs represent the cost of contributing to employee defined contribution schemes and are charged in the Statement of Financial Activities in the period in which they occur.

Tangible fixed assets

Individual fixed assets costing more than £1,000 are capitalised as fixed assets at cost and depreciated from the date they are brought into use on a straight-line basis over their estimated useful lives as follows:

Computer hardware 25% per annum Computer software 50% per annum Leasehold improvements over period of lease

Stock

Stock is included at the lower of cost or net realisable value.

Debtors

Debtors are measured on initial recognition at settlement amount. Subsequently they are measured at the cash or consideration expected to be received.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a maturity of three months or less from the date of acquisition or the date of opening of the deposit or similar account.

Creditors

Creditors are recognised at settlement amounts less any trade discounts.

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

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Notes to the accounts for the year ended 31 August 2020 (continued)

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2. Employees

ployees
	2020	2019
Employee costs comprise:	£	£
Gross wages and salaries	334,848	353,013
Employer’s national insurance costs	15,560	16,522
Pension costs	5,428	4,278
	–––––––	–––––––
	355,836	373,813
	–––––––	–––––––
Number of employees:	Number	Number
Average number of employees during the year	27	34
	–––––	–––––
Average number of full-time equivalent employees	19	20
	–––––	–––––

No employee received emoluments in excess of £60,000 (2019 – none).

3. Trustees’ remuneration

The trustees neither received nor waived any emoluments during the year (2019 – nil). The charity deems the key management personnel to be the trustees, therefore the remuneration of the key management personnel was nil (2019 – nil).

No trustee incurred or was reimbursed for any out-of-pocket expenses during the year (2019 – nil).

4. Independent examiner’s remuneration

The independent examiner’s remuneration amounts to £1,370 (2019 - £1,300).

5. Taxation

The Little Sutton Club and Nursery School is a registered charity and accordingly is exempt from taxation on its income where it is applied for charitable purposes.

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Notes to the accounts for the year ended 31 August 2020 (continued)

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6.	Tangible fixed assets
		Computer	Leasehold
		equipment	improvements	Total
		£	£	£
	Cost
	At 1 September 2019 and
	At 31 August 2020	13,247	139,912	153,159
		––––––	–––––––	–––––––
	Depreciation
	At 1 September 2019 and
	At 31 August 2020	13,247	139,912	153,159
		––––––	–––––––	–––––––
	Net book value
	At 31 August 2020	-	-	-
		––––––	––––––	––––––
	At 31 August 2019	-	-	-
		––––––	––––––	––––––
7.	Debtors
			2020	2019
			£	£
	Trade debtors		2,576	10,529
	Prepayments and accrued income		17,099	5,815
			––––––	––––––
			19,675	16,344
			––––––	––––––
8.	Creditors – amounts falling due within	one year
			2020	2019
			£	£
	Taxation and social security		4,608	3,710
	Other creditors		1,119	1,329
	Accruals and deferred income		53,050	53,707
			––––––	––––––
			58,777	58,746
			––––––	––––––

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The Little Sutton Club and Nursery School Charity Commission Registered Number 1047535

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Notes to the accounts for the year ended 31 August 2020 (continued)

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9.	Unrestricted funds
		2020	2019
		£	£
	At 1 September 2019	355,464	320,526
	(Deficit) surplus for the year	(12,177)	34,938
		–––––––	–––––––
	At 31 August 2020	343,287	355,464
		–––––––	–––––––

10. Related party transactions

There have been no related party transactions during the year that require disclosure.

11. Reconciliation of net movement in funds to net cash flow from operating activities

	2020	2019
	£	£
Net movement in funds	(12,177)	34,938
Depreciation charged	-	-
Interest received	(596)	(523)
(Increase) decrease in stocks	554	(855)
(Increase) decrease in debtors	(3,331)	1,043
Increase (decrease) in creditors	31	(20,298)
	––––––	––––––
Net cash flow from operating activities	(15,519)	14,305
	––––––	––––––

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