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2021-08-31-accounts

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

REGISTERED CHARITY NUMBER: 1069874

HOUGHTON NURSERY GROUP

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

Tattersall Bailey Chartered Accountants 14A Main Street Cockermouth Cumbria CA13 9LQ

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 12
Detailed Statement of Financial Activities 13 to 14

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES Objectives and aims

Objectives

The charity's objectives are set out in its governing document and include the provision of nursery education for pre-school children and full wrap-around day care for two and a half to eleven-year olds within the local community - also the provision of a holiday club for two and a half to eleven year old children from a wider community during school holidays.

Activities

In planning our activities for the year, we keep in mind the Charity Commission's guidance on public benefit at our trustees' meetings.

We demonstrate our involvement with the community through our daily activities. We help educate and develop the children's social skills whilst ensuring their physical and emotional needs are met. We have close links with our travelling community as we strive to be all inclusive welcoming children from all backgrounds, faith and gender into our setting.

Additional details of objectives and activities

No grants are made by the charity. Though we are a small charity ourselves, we involve the children in activities to raise funds for other charities. This year we have supported Children in Need, Save the Children and made up boxes for the Shoe Box Appeal.

A great contribution is made by our committee members who volunteer their time and energy. Without their valuable contribution we would not be able to achieve so much.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Due to the pandemic we have had to put all fundraising events on hold. However, we did raise some money with a Christmas Chocolate hamper and photograph commission. We also continued to raise funds throughout the year through the Nathan's Waste scheme where donations of clothing are collected in our new outdoor waste collection bank in exchange for payment. In support of our community we continue to run the Holiday Club during the Christmas break to help local parents at this busy time

The annual Christmas party for the after-school children was cancelled though we were able to give out party bags funded by a kind donation from a parent. The nursery children enjoyed a Christmas party where they had a visit from Santa, through the window social distancing maintained. It was a great success.

We have further cut back on the use of paper, making ourselves even more environmentally friendly. We continue to use our email system to keep parents informed about activities. We also continue to use Tapestry, an online record keeping system for each child, which means parents have easy quick access to their child's development and reports instead of waiting upon hand written information.

Unfortunately as stated earlier due to Covid19 fundraising in the current pandemic is not possible.

Page 1

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

FINANCIAL REVIEW

We hold monies in our high interest account of £88410.63, all of which is unrestricted funds. The financial security depends upon the number of children attending our setting and also external economic conditions and changes. The committee has set a reserve policy which requires approximately six months running costs. Though we remain confident of the future this ensures that our core activities can continue during any period of unforeseen difficulties. We also transferred £20k to our community account with the intentions of completing some interior and exterior improvements. A further £3k was transferred in respect of donated funds received in July from a nursery that unfortunately closed. These funds will be used to purchase resources for the children's use.

Our main sources of income are the free entitlement hours funded by the government and fees paid by parents for our facilities. We are registered for parents who satisfy certain criteria, to claim the free entitlement grant for 2 year olds alongside the children who claim the 3 to 4 year olds' grant. In accordance with our policies we accept children from two and a half years of age. We now also offer the 30 hours free entitlement alongside the universal 15 hours for all 3 to 4 year olds who meet the criteria. We constantly monitor our operating costs to make our fees competitive and as affordable as possible for the parents/carers of our children.

During the Covid19 pandemic our setting has remained open throughout with all staff returning to full duties in September 2020. The funding grants have also continued throughout. The nursery has continued to work in three bubbles, basically running three mini nurseries within the room. Our staffing levels have been significantly higher to achieve this and in order to adhere to the strict cleaning procedures needed. We have had to adjust our procedures to maintain and follow all government guidelines with regard to the pandemic.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Our constitution was adopted on 26th November 2015. Trustees can join the committee throughout the year at meetings. Office bearers are usually appointed or reappointed annually at the Annual General Meeting held in November. We have policies and procedures in place including safeguarding. All members have disclosure checks carried out prior to joining the committee. We are also members of pre-school learning alliance and the NDNA

As training is no longer free from Children's Services the cost is now included in the annual budget. We have used online courses and courses arranged by the local NDNA branch to keep the costs down.

Our Ofsted inspection in November 2016 resulted in us maintaining our "Good" rating. We continue to achieve good assessments from Cumbria Children's Services.

We have very close links to the local school - we run their breakfast and after school clubs. This has continued throughout the pandemic. We also have regular contact with the local Cumbria Wildlife farm. Though visits have not taken place due to the present pandemic and government guidelines.

As trustees we are aware it is our responsibility to identify, assess and manage risks. This we do on a daily basis by monitoring our procedures and systems so that any issues are identified and managed as early as possible restricting the impact upon the nursery or its future stability. We have increased our reserves in our high interest account to counter balance the uncertainty within the country at the present time. As the present political and financial climate are uncertain and this being such an important and sensitive subject we were planning to further strengthen our risk management system by introducing a risk register this year. This however has been delayed again due to the pandemicas we have been unable to allocate the personnel to complete the task. This remains a priority..

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1069874

Page 2

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2021

Principal address

Jackson Road Houghton Carlisle Cumbria CA3 0NX

Trustees

K Harding (appointed 21.6.21) C Maxwell (appointed 25.6.21) G Hewitt (resigned 2.12.20) C Birrell Mrs T Woollerton (resigned 2.12.20) H Jones (resigned 11.5.21) D Hadley

Independent Examiner

Luke Tattersall FCA Tattersall Bailey Chartered Accountants 14A Main Street Cockermouth Cumbria CA13 9LQ

10 December 2021 | 6:21 AM GMT

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.......................................................................... C Birrell - Trustee

Page 3

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HOUGHTON NURSERY GROUP

Independent examiner's report to the trustees of Houghton Nursery Group

I report to the charity trustees on my examination of the accounts of Houghton Nursery Group (the Trust) for the year ended 31 August 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust 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.

Luke Tattersall FCA Tattersall Bailey Chartered Accountants 14A Main Street Cockermouth Cumbria CA13 9LQ 10 December 2021 | 2:25 PM GMT Date: .............................................

Page 4

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3,464
Charitable activities
Nursery
173,228
Other trading activities
2
361
Investment income
3
8
Total
177,061
EXPENDITURE ON
Raising funds
191
Charitable activities
Nursery
141,407
Other
4,817
Total
146,415
NET INCOME
30,646
RECONCILIATION OF FUNDS
Total funds brought forward
161,816
TOTAL FUNDS CARRIED FORWARD
192,462
Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
297,990
297,990
31.8.21
Total
funds
£
3,464
173,228
361
8
177,061
191
141,407
4,817
146,415
30,646
459,806
490,452
31.8.20
Total
funds
£
151
165,794
673
98
166,716
322
126,551
4,656
131,529
35,187
424,619
459,806

The notes form part of these financial statements

Page 5

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

BALANCE SHEET 31 AUGUST 2021

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
7
11,785
CURRENT ASSETS
Debtors
8
9,644
Cash at bank and in hand
174,160
183,804
CREDITORS
Amounts falling due within one year
9
(3,127)
NET CURRENT ASSETS
180,677
TOTAL ASSETS LESS CURRENT
LIABILITIES
192,462
NET ASSETS
192,462
FUNDS
10
Unrestricted funds
Restricted funds
TOTAL FUNDS
Restricted
fund
£
297,990
-
-
-
-
-
297,990
297,990
31.8.21
Total
funds
£
309,775
9,644
174,160
183,804
(3,127)
180,677
490,452
490,452
192,462
297,990
490,452
31.8.20
Total
funds
£
311,138
3,457
148,559
152,016
(3,348)
148,668
459,806
459,806
161,816
297,990
459,806

10 December 2021 | 6:21 AM GMT

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. C Birrell - Trustee

The notes form part of these financial statements

Page 6

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Financial reporting standard 102 - reduced disclosure exemptions

The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold - in accordance with the property Fixtures and fittings - 25% on reducing balance and 15% on reducing balance

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

continued...

Page 7

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

2. OTHER TRADING ACTIVITIES

2. OTHER TRADING ACTIVITIES
31.8.21 31.8.20
£ £
Fundraising events 361 673
3. INVESTMENT INCOME
31.8.21 31.8.20
£ £
Deposit account interest 8 98

4. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.

5. STAFF COSTS

The average monthly number of employees during the year was as follows:

31.8.21 31.8.20
Nursery 10 10
No employees received emoluments in excess of £60,000.
6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
fund fund funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 151 - 151
Charitable activities
Nursery 165,794 - 165,794
Other trading activities 673 - 673
Investment income 98 - 98
Total 166,716 - 166,716
EXPENDITURE ON
Raising funds 322 - 322
Charitable activities
Nursery 126,551 - 126,551
Other 4,656 - 4,656

continued...

Page 8

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
7.
TANGIBLE FIXED ASSETS
COST
At 1 September 2020
Additions
At 31 August 2021
DEPRECIATION
At 1 September 2020
Charge for year
At 31 August 2021
NET BOOK VALUE
At 31 August 2021
At 31 August 2020
Unrestricted
fund
£
131,529
35,187
126,629
161,816
Long
leasehold
£
301,317
-
301,317
-
-
-
301,317
301,317
Restricted
fund
£
-
-
297,990
297,990
Fixtures
and
fittings
£
36,581
192
36,773
26,760
1,555
28,315
8,458
9,821
Total
funds
£
131,529
35,187
424,619
459,806
Totals
£
337,898
192
338,090
26,760
1,555
28,315
309,775
311,138
Total
funds
£
131,529
35,187
424,619
459,806

Long Leasehold property is not amortised as the building is maintained to a high standard and after seeking legal advice the trustees are satisfied that the lease will be renewed because of the close relationship between the Nursery and School, and the C of E.

continued...

Page 9

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Prepayments
9.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors
10.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Restricted funds
Restricted Funds
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS

At 1.9.20
£
161,816
297,990
459,806
Incoming
resources
£
177,061
177,061
31.8.21
31.8.20
£
£
6,677
2,740
2,967
717
9,644
3,457
31.8.21
31.8.20
£
£
3,127
3,348
Net
movement
At
in funds
31.8.21
£
£
30,646
192,462
-
297,990
30,646
490,452
Resources
Movement
expended
in funds
£
£
(146,415)
30,646
(146,415)
30,646
31.8.20
£
2,740
717
3,457
31.8.20
£
3,348
At
31.8.21
£
192,462
297,990
490,452
30,646

continued...

Page 10

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

10. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.9.19
£
Unrestricted funds
General fund
126,629
Restricted funds
Restricted Funds
297,990
TOTAL FUNDS
424,619
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
166,716
TOTAL FUNDS
166,716
A current year 12 months and prior year 12 months combined position is as follows:
At 1.9.19
£
Unrestricted funds
General fund
126,629
Restricted funds
Restricted Funds
297,990
TOTAL FUNDS
424,619
Net
movement
At
in funds
31.8.20
£
£
35,187
161,816
-
297,990
35,187
459,806
Resources
Movement
expended
in funds
£
£
(131,529)
35,187
(131,529)
35,187
Net
movement
At
in funds
31.8.21
£
£
65,833
192,462
-
297,990
65,833
490,452
At
31.8.20
£
161,816
297,990
459,806
35,187
At
31.8.21
£
192,462
297,990
490,452

continued...

Page 11

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

10. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
Incoming
resources
£
343,777
343,777
Resources
Movement
expended
in funds
£
£
(277,944)
65,833
(277,944)
65,833
Resources
Movement
expended
in funds
£
£
(277,944)
65,833
(277,944)
65,833
65,833

11. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2021.

Page 12

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

31.8.21 31.8.20
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Gifts 2 1
Donations 3,462 150
3,464 151
Other trading activities
Fundraising events 361 673
Investment income
Deposit account interest 8 98
Charitable activities
Nursery fees 52,161 44,785
Grants- Nursery 121,067 121,009
173,228 165,794
Total incoming resources 177,061 166,716
EXPENDITURE
Other trading activities
Purchases 191 322
Charitable activities
Wages 119,088 104,342
Rates and water 1,272 1,307
Insurance 1,252 1,260
Light and heat 1,980 1,556
Telephone 550 596
Sundries 2,597 1,796
Purchases 2,871 4,197
Other costs 8,384 7,438
Repairs and renewals 1,858 2,293
Fixtures and fittings 1,555 1,766
141,407 126,551
Support costs
Governance costs
Sundries 1,560 1,512
Carried forward 1,560 1,512

This page does not form part of the statutory financial statements

Page 13

DocuSign Envelope ID: 57D79078-A6C3-4B50-886A-847E05D034C2

HOUGHTON NURSERY GROUP

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

31.8.21 31.8.20
£ £
Governance costs
Brought forward 1,560 1,512
Accountancy and legal fees 3,257 3,144
4,817 4,656
Total resources expended 146,415 131,529
Net income 30,646 35,187

This page does not form part of the statutory financial statements

Page 14