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2021-03-31-accounts

TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

FOR

31 MARCH 2021

Company Registration Number 2971101 Charity Number 1069864

DERBY COMMUNITY ACCOUNTANCY SERVICE

Babington Lodge 128 Green Lane Derby

TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Contents Page
Members of the board and professional advisers 1
Trustees’ annual report 2-5
Independent Examiner’s report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9-15

TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS

The board of trustees

Mr. Stephen Lismore (Chair) Mr. Mark Grayling Mr. Richard Gilbert (Vice Chair) Ms. Marion Thorpe Ms. Jeanette Clayton Ms. Pauline Briggs Ms. Sandra Johnson

Company secretary

Mr. Richard Gilbert

Registered office Treasures Neighbourhood Nursery 23 High Street Staveley Chesterfield Derbyshire S43 3UX Bankers Unity Trust Bank Plc 19 Brindleyplace Birmingham B16 1AR Independent Examiner Mark Newey Derby Community Accountancy Service Babington Lodge 128 Green Lane Derby DE1 1RY

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 MARCH 2021

The trustees, some of whom are also Directors for the purposes of the Companies Act, have pleasure in presenting their report and the unaudited financial statements of the charity for the year ended 31 March 2021.

OBJECTIVES AND ACTIVITIES

The principal objective of the Charity is to provide jobs and training for deprived communities through the provision of services meeting community need. Our services during the year were the provision of childcare through our Treasures Neighbourhood Nursery, and occasional mobile crèches provided for community groups, weddings, business and private functions. Coupled with these services we also offered jobs and training to local people wishing to pursue a career in childcare.

We continued to aim to expand into other services meeting community need as opportunity and resources permit, but as the year in question was badly affected by Covid restrictions there were few opportunities to do so.

SUMMARY OF THE MAIN ACTIVITIES UNDERTAKEN FOR THE PUBLIC BENEFIT IN RELATION TO THESE OBJECTS

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and planning future activities. In particular the trustees consider how planned activities will contribute to the aims and objectives they have set.

ACHIEVEMENTS AND PERFORMANCE

Governance and Management

I remain grateful for the dedication and hard work of my fellow Trustees. With the range of Covid restrictions we were forced to act and meet remotely and there were a wide range of difficulties in meeting the terms of those restrictions whilst protecting the business that were particularly difficult but they rose to the challenge.

I am also very appreciative of the dedication, professionalism, and caring approach provided by the Nursery Manager, the Deputy Managers, and all the staff, who continued to provide a very high quality of service to children, families and the local community. This was particularly evident as we moved through the Covid period, when despite concerns for their own health and the safety of their families they continued to deliver services to the community.

Performance of Charity

The country moved into Covid crisis in early March 2020 and the crisis continued for the whole of the 20/21 financial year. Although we initially carried on operating to provide childcare services to essential workers, numbers very rapidly dwindled away as parents wished to keep their children safe at home with them. We therefore made the decision that the service to the community was not sufficient to outweigh the risk to our staff, and closed the nursery altogether. It remained closed until early July 2020.

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 MARCH 2021

Fortunately we were able to benefit from the Government furlough scheme. Although the scheme covered 80% of salary costs we carried on paying 100% of salaries, in recognition of the loyalty and commitment that our staff have always shown.

Since we reopened we have found a way of safely delivering services-with new procedures for protecting both children and staff from any transmission. Numbers of children grew and continue to grow.

Unfortunately many of our places are Government funded and the amount per hour that Government pays is not sufficient to cover our costs. Trustees will be working with Derbyshire County Council, with the National Day Nursery Association, and with other partners to impress on central Government the need for support for the childcare sector to rise to a level that makes it sustainable in the long term.

FINANCIAL RISKS

There is a possibility that some of the furlough payments we received might be repayable. We think this risk is negligible but for these accounts we continue to show them as a contingent liability. The situation should be finally resolved by the end of the 2021/22 financial year.

In May 2019 the rent free period built into the lease expired. We contacted Morrisons via their agent Savills several times, asking for an extension of this rent-free period. They never formally responded, although their agent has informally indicated they are content with this arrangement. We do of course continue to pay a service fee for the use of the premises.

RESERVES

Trustees aim to have net current assets roughly equal to 3 months expenditure, to permit an orderly wind-down of the business should it ever be necessary. Based on the 2020/21 expenditure we would thus be aiming to hold net current assets of around £ 86,411. We ended the financial year with net assets including fixed assets of £72,581.

PLANS FOR THE FUTURE

Trustees have concluded that the level of Government funding, coupled with rising salary and other costs makes it very difficult for a smallish stand-alone nursery to survive. We have therefore agreed with Margaret Mason, formerly head of the Children1st chain of nurseries, for her to take over the running of Treasures, as the first of what will be a chain of community focused nurseries across the East Midlands. This change should take place over the winter of 2021/22.

After more than 10 years as Chair of Trustees of Touchstone Community Development, and more than 20 years of association with the Charity I am now stepping back to a more low key role, continuing as a Trustee but handing the day to day management over to Margaret and her team. I know Touchstone Community Development and Treasures Neighbourhood Nursery will carry on delivering high quality childcare provision, jobs and training under these new arrangements. My thanks to everyone for their hard work and dedication in getting us to this point.

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 MARCH 2021

FUNDS HELD ON BEHALF OF OTHERS.

We are not holding any funds on behalf of others.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Touchstone Community Development is based 23 High Street, Staveley, Chesterfield, Derbyshire, S43 3UX which is the company's registered office and the principal address of the charity. Touchstone Community Development is a company limited by guarantee and not having a share capital (company registration No. 2971101) and Registered Charity (No. 1069864). The date of incorporation was 26[th] September 1994.

The Trustees of the Charity are also Directors for company law purposes and met on a regular basis throughout the financial year.

Trustee selection methods

An assessment has been made to discover those skills required by the trusts body. Efforts are made to recruit trustee who meet the skill requirement from the resident population.

Risk management policy

As noted above, the continuing Covid crisis adds a huge and unpredictable risk, not just to our nursery but to the entire childcare sector.

To reduce these risks Trustees will be working with Derbyshire County Council, with the National Day Nursery Association, and with other partners to impress on central Government the need for an enduring form of subsidy for the childcare sector until the Covid crisis is resolved.

There is a possibility that some of the furlough payments we received might be repayable. We are holding them in a separate account until this situation is ultimately resolved.

In May 2019 the rent free period built into the lease expired. We contacted Morrisons via their agent Savills several times, asking for an extension of this rent-free period. They never formally responded, but we took this to mean they are content that we continue to pay no rent, although it does introduce an extra level of uncertainty into the business.

Independent examiner

Mark Newey of Derby Community Accountancy will continue in office as independent examiner for the ensuing year.

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

TRUSTEES’ ANNUAL REPORT

YEAR ENDED 31 MARCH 2021

Small company provisions

This report has been prepared in accordance with the special provisions for small companies under part 15 of the Companies Act 2006.

Registered office: 23 High Street Staveley Chesterfield Derbyshire S43 3UX

Signed on behalf of the trustees

S Lismore Trustee

Approved by the trustees on

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

YEAR ENDED 31 MARCH 2021

Independent Examiner's Report to the Trustees of Touchstone Community Development

I report on the accounts of the company for the year ended 31 March 2020 which are set out on pages 7 to 15 .

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to an audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

Mark Newey ACMA Derby Community Accountancy Service Babington Lodge 128 Green Lane Derby

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2021

Total Funds Total Funds
Unrestricted Restricted Year to 31 Year to 31
Funds Funds Mar 2021 Mar 2020
Note
£
£ £ £
Income
Grants and Donations 3 - 36,730 36,730 -
Investment income 5 26 - 26 4
Charitable activities 4 271,356 - 271,356 314,169
Other income -
-
-
-
Total incoming resources 271,382
36,730
308,112
314,173
Expenditure on
Raising Funds - - - -
Charitable activities 330,806
36,730
367,536
340,578
Total resources expended 6 330,806
36,730
367,536
340,578
Net incoming/(outgoing)
resources before transfers (59,424) - (59,424) (26,405)
Transfer between funds -
-
-
-
Net movement in funds (59,424) - (59,424) (26,405)
Funds brought forward 132,005
-
132,005
158,410
Funds carried forward 72,581
-
72,581
132,005

The charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

The notes on pages 9 to 15 form part of these financial statements.

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due
within one year
12
Net current assets
Total assets less current liabilities
Net assets
Funds
Restricted
13
Unrestricted – general reserves
13
TOTAL FUNDS
2021
£
15,582
46,371

61,953
(71,749)
£

82,377
(9,796)

72,581

72,581

-
72,581

72,581
2020
£
23,165
16,194

39,359
(11,624)
£
104,270
27,735

132,005

132,005

-
132,005

132,005

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

Directors responsibilities:

These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

These financial statements were approved and authorised for issue by the members of the trustees and are signed on their behalf by:

S. Lismore Date Trustee Company Registration Number: 2971101

The notes on pages 9 to 15 form part of these financial statements.

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Company information

Touchstone Community Development is a company limited by guarantee not having a share capital. The company’s registered office is, 23 High Street, Staveley, Chesterfield, Derbyshire, S45 3UX, the Memorandum and Articles of Association, had undertaken to contribute the sum not exceeding £1 in the event of a winding up of the company.

1.1 Accounting convention

These accounts have been prepared in accordance with FRS 102, “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it apples from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in Sterling which is the functional currency of the company Monetary amounts in these financial statements to the nearest £.

The accounts have been prepared on historical cost convention apart from freehold property that is carried at market value. The principal accounting policies adopted are set out below.

These are accounts for the year ended 31 March 2021 prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.

1.2 Going concern

At the time of approving the accounts, the Directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable Funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

1.4 Incoming resources

All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Gifts in kind have been included at market value of gifts received and in assets acquired. No amounts are included in the financial statements for services donated by volunteers.

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources. Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in the support of the charitable activities.

1.6 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.9 Financial instruments

The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Taxation

The charity is exempt from tax on income and gains falling with section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

applied to its charitable objects.

1.12 Depreciation

Individual fixed assets are capitalised at cost and are depreciated over their estimated useful economic as follows:-

Asset category Annual rate
Leasehold Property (Straight Line Basis0 5%
Office Equipment (Straight Line Basis) 25%
Computer Equipment (Reducing Balance) 20%

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimated and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

3 Grants and Donations

Total Funds Total Funds
Unrestricted Restricted Year to 31 Year to 31
Funds Funds Mar 2021 Mar 2020
£ £ £ £
HM Revenue and Customs - 36,730 36,730 -
Sundry donations -
-
-
-
-
36,730
36,730
-

4 Incoming resources from the charitable activities

Total Funds Total Funds
Unrestricted Restricted Year to 31 Year to 31
Funds Funds Mar 2021 Mar 2020
£ £ £ £
Nursery Fees and Funding 269,563 - 269,563 308,432
Other 1,793
-
1,793
5,737
271,356
-
271,356
314,169

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

5. Interest receivable

Year to 31
Mar 2021
£
Bank interest receivable (unrestricted)
26

Total resources expended
Training costs
Rent, rates, premise & insurances
Repairs, renewals and cleaning
Food, materials, equipment and protective clothing
Telephone, stationery & project admin
Publicity and promotions
Legal and professional fees
Sundry expenses
Bank charges
Bad debt provision
Equipment hire
Wages and associated costs
Depreciation
Year to 31
Mar 2020
£
4

Total Funds
Year to 31
Mar 2021
Total Funds
Year to 31
Mar 2020
£
£
2,906
2,339
15,937
17,923
8,201
11,139
9,665
10,202
8,782
8,541
9,785
12,276
9,141
12,612
1,273
1,198
1,004
1,460
27,090
5,889
4,219
4,713
247,640
229,883
21,893
22,403


367,536
340,578

Year to 31
Mar 2020
£
4

Total Funds
Year to 31
Mar 2021
Total Funds
Year to 31
Mar 2020
£
£
2,906
2,339
15,937
17,923
8,201
11,139
9,665
10,202
8,782
8,541
9,785
12,276
9,141
12,612
1,273
1,198
1,004
1,460
27,090
5,889
4,219
4,713
247,640
229,883
21,893
22,403


367,536
340,578














367,536

6. Total resources expended

Expenditure on charitable activities was 367,536 (2020: £340,578) of which £36,730 was restricted (2020 £0)

7. Net (expenditure)/income

Net (expenditure)/income for the year is stated after charging/(crediting):

2021 2020
£ £
Independent Examiner’s Fees 1,200 1,200
Depreciation 21,893 22,403
=========================== ================================

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

8. Directors and key management personnel

During the year Trustees did not receive remuneration. The key management personnel of the charity consist of the Trustees, professional advisors and the Chief Executive Officer

9. Employees

The average number of staff employed by the charity during the financial year amounted to:

Direct Charitable Staff
Governance
Year to
31 Mar
2021
No
32
-

32
Year to
31 Mar
2020
No
26
-

32

The aggregate payroll costs were:

aggregate payroll costs were:
Year to 31 Year to 31 Mar
Mar 2021 2020
£ £
Wages and salaries 244,324 226,774
Social security costs - -
Pension costs 3,316
3,109
247,640
229,883

No employee earned more than £60,000 per annum. No trustees were reimbursed for expenditure.

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

10. Tangible fixed assets

Cost 1. April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
charge for the year
At 31 Match 2021
Net value at 31 March 2021
Net value at 31 March 2020
Long-Term
Leasehold
Property
Office
Equipment
Computer
Equipment
Total
£
£
£
£
419,436
23,075
4,469
446,980
-
-
-
-
419,436
23,075
4,469
446,980
317,093
22,404
3,213
342,710
20,972
671
250
21,893
338,065
23,075
3,463
364,603
81,371
-
1,006
82,377
102,343
671
1,256
104,270

11. Debtors

Trade Debtors
Prepayments
Creditors: Amounts falling due within one year
Trade creditors
Jobs Retention Scheme Provision
2021
£
15,582
-

15,582

2021
£
7,633
64,116
--------------------------------
71,749
================================
2020
£
23,165
-

23,165

2020
£
11,624
-
--------------------------------
11,624
================================

12. Creditors: Amounts falling due within one year

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TOUCHSTONE COMMUNITY DEVELOPMENT COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

13. Statement of funds


General reserve
Total unrestricted funds
Restricted Funds
HM Revenue and Customs
Total restricted funds
Total funds
At
1 April
2020 Incoming
Outgoing
Transfers
£
£
£
£
132,005
271,382
(330,806)
-




132,005
271,382
(330,806)
-
-
36,730
(36,730)




-
36,730
(36,730)
-




132,005
308,112
(367,536)
-



At
31March
2021
£
72,581

72,581

-

72,581

RESTRICTED FUNDS

The HM Revenue and Customs Job Retention Scheme was spent on supporting those employed.

14. Analysis of net assets

Tangible
fixed assets
Other
net assets
Unrestricted funds
£
£
General reserve
82,377
(9,796)
Restricted funds
-
-


82,377
(9,796)

Total
£
72,581
-

72,581

15. Related party transactions

The charity had no related party transactions that required disclosure.

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