2020-08-31-accounts - Thorns Community Trust

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THORNS COMMUNITY TRUST

ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

CHARITY NUMBER 1071096

www.brambles-kenilworth.com

INDEX

	Pages
Trustees' Annual Report	1-4
Independent Examiner's Report	5
Statement of Financial Affairs	6
Balance Sheet	7
Notes to the Accounts	8-12

THORNS COMMUNITY TRUST TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Reference and administrative information

Thorns Community Trust (TCT) is a registered charity, no. 1071096. TCT trades under the name Brambles Pre-School and Out of School Club (Brambles). Brambles is located on the site of Thorns Community Infant School (Thorns), and continues to maintain close links with the school. Its principal location is c/o Thorns Community Infant School, Blackthorn Road, Kenilworth, CV8 2DS.

TCT is overseen by a committee of Trustees. There are three types of trustee:

Ex-officio - the head teacher of Thorns Community Infant School
Nominated - Trustees who are appointed by the governing body of Thorns Community Infant School, and
Co-opted – Trustees who have been appointed by the TCT committee of Trustees as a consequence of their particular professional skills.

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TRUSTEES WHO SERVED DURING THE YEAR
Name Position Type of Trustee
Jonathan Wright Chair Co-opted
Liz Bradbury Ex-officio Ex-officio
Mandy Rawlings School Link Nominated
Eloise Ottewell Trustee Nominated
Simon Morris Trustee Nominated
Michelle Andrews Trustee Nominated
Katie Tattersall Trustee Nominated
Victoria Lancaster Trustee Nominated
TRUSTEES MANAGING TCT AT THE TIME THIS REPORT IS SIGNED
Name Position Type of Trustee
Jonathan Wright Chair Co-opted
Liz Bradbury Ex-officio Ex-officio
Eloise Ottewell Trustee Nominated
Simon Morris Trustee Nominated
Michelle Andrews Trustee Nominated
Katie Tattersall Trustee Nominated
Victoria Lancaster Trustee Nominated
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Structure, Governance and Management

TCT is governed by a constitution, which was written in January 1998 and supplemented by a further deed of the same year. An amendment to the constitution was made by way of Deed of Variation dated 23rd March 2011.

In 2019-20, the Trustees met on eight occasions. This was the highest number of meetings in a decade and was in no small part due to the immediate crisis caused by the COVID-19 Pandemic. During trust meetings all Trustees had the right to speak and to be heard. Decisions were made by consensus.

The day-to-day management of Brambles is delegated to the manager of Brambles, who is supported by a deputy manager. TCT also contracts a direct employee who is responsible for day to day administration and business management. Operational reports are made by the Brambles manager and the business administrator (who is responsible for finance) at most Trustee meetings.

Objectives, activities and performance

The main aim of TCT is to provide high quality child care to young children between the ages of 2 years 9 months and eleven years through the provision of a Pre-School, Out of School Club and Holiday Club.

In effect, Brambles fulfils the obligation of Thorns Community Infant School by way of its extended hours provision.

Public benefit

Brambles is a pre-school, out of school club and holiday club setting that provides reasonably priced childcare and educational benefit to the local community. The Trustees, always seek to bear in mind that TCT is a charity and that they have a responsibility to act in the public interest. At the time of signing this report all serving Trustees had read the guidance published by the Charities Commission on public benefit.

The Trustees believe that the aims and resulting benefits of TCT are clear and that the benefits obtained from TCT’s activities are derived from its aims. In addition, the benefits are focused on a section of the public, namely preschool and primary age children and their parents/carers, and within this range, no section of the public is unreasonably restricted.

Due to its location the children who attend Brambles tend to live within the Thorns’ catchment area. The admissions policy does not however exclude children from attending who live outside of this area. The Trustees still consider that the prices are competitive and would not regard the inability to pay fees as a bar to entry.

Pre-school

During the first half of the financial year, the Brambles Pre-School was open for five morning and lunchtime sessions as well as a number of afternoon sessions per week during term time. This abated during the second half of the financial year due to a huge drop in demand as a result of the COVID-19 Lockdown. For some months we provided emergency Pre-School and Out of School Cover for children of key workers, helping out other nurseries that were closed due to the COVID-19 Pandemic.

Brambles Ofsted registration allows 30 children to attend per session. It is TCT policy to not fill each session so that the educational experience for each child is optimised.

The vast majority of the Pre-School children moved from Brambles Pre-School up to Thorns at the end of their preschool year.

Out of School Club

During the first half of the financial year, the Out of School Club was also only open during term time, and had over fifty children registered, split across the three year groups at Thorns. The Out of School Club opened both before school, from 7:45am, and then again after school, from 3pm to 6pm. A variety of sessions were available and there was a good level of attendance across all of the sessions. This changed materially in the second half of the year owing to the COVID-19 Pandemic.

Holiday Club

During the first half of the financial year, the Holiday Club was open during the majority of each school holiday and offered a variety of sessions, within the timeframe of 8am to 6pm. This was much more limited in the second half of the financial year.

The number of children attending Holiday Club varied between holidays. In common with previous years, a good proportion of the children who attended holiday club were pupils at Thorns or Park Hill. These were supplemented by children that attend Clinton and St Augustine's.

Risk Review

The Trustees regularly consider the risks to which TCT is exposed at the Trustees’ meetings and, where appropriate, measures are taken to ensure existing systems and procedures are strengthened to mitigate these risks as far as possible. During the year, some new policies were approved and other improvements were made. This is necessary to ensure good governance and manage risk so as to maintain the high standards for the setting.

In order to further mitigate risk, the Trustees have established a Charitable Incorporated Organisation ( CIO ) and intend to transfer the undertaking of the Charity to that CIO as soon as a further OFSTED inspection has taken place.

During the financial year an OFSTED inspection took place which rated the setting as “inadequate”. The Trustees have invested considerable time and financial resource in addressing the issues raised by the OFSTED Report and are confident that the previous “good” rating will be restored at the next inspection.

Staffing

During the financial year a new manager was appointed to replace the previous manager.

Financial Review

For the year ending 31 August 2020, TCT made a loss of £ 20,561. This decreased the overall level of reserves to £118,510 at the end of the financial year.

The Trustees are aware that the COVID-19 Pandemic had a material impact on finances and took urgent steps to both support all income generation activities (including applications for a grant and the job retention scheme as well as the restoration of the Nursery Grant that had been suspended due to the adverse OFSTED rating in 2019). The Trustees have also taken a close look at all expenditure in order to avoid falling into a loss making position.

There are no restricted or designated funds held by the Trust. From time to time the Trustees may budget to spend certain monies on certain projects, but these funds remain at all times part of the general accumulated fund of the Trust. However, the Trustees believe that an adequate level of reserves of four to six months’ running costs should be maintained at all times to enable TCT to continue operating for a term should all external funding cease.

The Trustees observe that the present cash balance held is materially in excess of the stipulated four to six months’ running costs. Given the age of the temporary building and the maintenance liabilities that accrue annually, it remains the stated intention of the trustees to look to those surplus funds (with the addition of grant monies) to either refurbish or replace the current temporary building.

Future Events

Fees continue to be reviewed annually. As in previous years, the spare capacity in preschool continues to provide concern as this has had a material effect on the income of the Trust. The Trust continues to face challenges with the implementation of the National Living Wage and the need to offer free at point of access child-care at Government-set rates in the Pre-School. The OFSTED rating in November 2019 has subsisted due to an inability of OFSTED to reinspect as a consequence of the COVID-19 Pandemic and this has limited the ability to attract new children. The Building in which Brambles is housed is now almost 50 years old and requires increasing maintenance. The Trustees will continue to keep both fees and expenditure under close review so as to ensure that the Trust will generate a surplus in future years and therefore maintain adequate levels of reserves to remain viable into the future.

Statement of Trustees' Responsibilities

Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles of 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 financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue in business.

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 financial statements comply with the Charities Act 2011. 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 declare that they have approved the Trustees’ Report above

Signed on behalf of the TCT’s Trustees:

Jonathan William Emlyn Wright

Chair

24 June 2021

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THORNS COMMUNITY TRUST

I report on the accounts of Thorns Community Trust ('the Trust') for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, and the related notes.

Responsibilities and basis of the report

As the Trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’). You are satisfied that the accounts of the Trust are not required by charity law to be audited and have chosen instead to have an independent examination.

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the general Directions given by the Charity Commission for England and Wales under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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

accounting records were not kept in accordance with section 130 of the 2011 Act; or
the accounts did not accord with those records; or and the 2011 Act; or
the accounts did 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

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.

Michelle Larkin Chartered Accountant

FILAN Accountants 57 Ely Street Warwickshire CV37 6LN

24 June 2021

THORNS COMMUNITY TRUST

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 AUGUST 2020

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2020 2019
Notes Unrestricted Restricted Total Unrestricted Restricted Total
Fund Funds Funds Fund Funds Funds
£ £ £ £ £ £
Income from:
Donation 3 - 500 500 - 2,160 2,160
Charitable activities 4 114,178 - 114,178 170,937 - 170,937
Other trading activities 5 92 - 92 1,713 - 1,713
Investments 6 188 - 188 164 - 164
Other 7 7,000 11,369 18,369
Total 121,458 11,869 133,327 172,814 2,160 174,974
Expenditure on:
Charitable activities 8 142,019 11,869 153,888 172,248 2,160 174,408
Total 142,019 11,869 153,888 172,248 2,160 174,408
Net (expenditure)/income (20,561) - (20,561) 566 - 566
Reconciliation of funds:
Funds brought forward 139,071 - 139,071 138,505 - 138,505
Funds carried forward 118,510 - 118,510 139,071 - 139,071
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THORNS COMMUNITY TRUST

BALANCE SHEET

AS AT 31 AUGUST 2020

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2020 2019
Notes £ £ £ £
Fixed assets
Tangible fixed assets 11 5,734 6,050
Current assets
Debtors 12 7,645 7,829
Cash at bank and in hand 110,725 132,737
118,371 140,566
Creditors: amounts falling
due within one year 13 (5,595) (7,545)
Net current assets 112,776 133,021
Net assets 118,510 139,071
Represented by:
Accumulated funds:
General fund 14 118,510 139,071
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These accounts were approved by the Trustees on 24 June 2021 and are signed on their behalf by:

JWE Wright Chair

THORNS COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020

1. Status

Thorns Community Trust is an unincorporated association; it is also a registered charity (registration nimber 1071096) whose activities are intended to be for the public benefit. Its principal location is c/o Thorns Community Infant School, Blackthorn Road, Kenilworth, CV8 2DS.

2. Accounting Policies

Basis of preparation

The accounts (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) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Going concern

After making enquiries, the trustees are not aware of any material uncertainties that cast doubt on going concern and have a reasonable expectation that the Charity will be able to continue its activities for the foreseeable future, and at least twelve months from the date of approval of these accounts. Accordingly, they have con�nued to adopt the going concern basis in the financial statements.

Income

Income is recognised as incoming resources to the extent that the charity has provided the services in question.

Expenditure

Costs of activities in furtherance of the charity’s objects comprise those costs incurred by the charity as a result of the delivery of its service. Governance costs comprise those costs incurred by the charity in meeting its constitutional and statutory requirements.

Tangible fixed assets

Tangible fixed assets are included in the balance sheet at cost less depreciation. Depreciation is generally calculated so that the cost of tangible fixed assets less their residual value are written off over their estimated useful lives. The following depreciation rates apply:

THORNS COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020 (continued)

3. Donations

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||||| |---|---|---|---| |2020|2019| |Restricted|Total| |£|£|£| |Donations|500|500|2,160|

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A donation of £500 (2019: £2,160) was received in the year which was to be used to overhaul the outside area.

4. Income from charitable activities

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||||| |---|---|---|---| |2020|2019| |£|£| |Out of school club fees|51,358|77,777| |Holiday club fees|11,095|12,491| |Preschool grant|40,669|64,899| |Preschool fees|11,056|15,770| |114,178|170,937| |5. Other trading activities| |2020|2019| |£|£| |Fundraising activities|92|1,713| |6. Investment income| |Unrestricted| |funds|2020|2019| |£|£|£| |Interest receivable on bank deposits|188|188|164|

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7. Other income

Included in Other income of £18,369 are the folowing grants: £11,369 CJRS grant and £7,000 of COVID 19 grant.

THORNS COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020 (continued)

8. Expenditure on charitable activities

Staff costs Insurance Materials Electricity Training Printing postage and telephone Depreciation Rent Rates Repairs Cleaning Equipment Professional fees Garden project Nursery IT and software Sundry Governance costs: Trustees' remuneration and expenses Independent Examiner's fees	Unrestricted Restricted Total £ £ £ 100,918 11,369 112,287 3,148 - 3,148 2,847 - 2,847 1,620 - 1,620 601 - 601 2,362 - 2,362 1,961 - 1,961 5,459 - 5,459 276 - 276 214 - 214 1,782 - 1,782 - - - 14,143 - 14,143 1,358 500 1,858 406 - 406 3,964 - 3,964 141,059 11,869 152,928 - - - 960 - 960 142,019 11,869 153,888 2020	2019 £ 133,097 3,609 2,166 2,805 965 2,320 859 5,490 418 1,128 1,481 1,063 7,564 2,470 2,582 5,891 173,908 - 500 174,408

9. Trustees remuneration and expenses

Mr Jonathan Wright, a trustee, received £233 (2019: nil) for reimbursed expenses during the year.

10. Staff remuneration and numbers

Wages and salaries Employers National Insurance Pension contributions	2020 £ 108,549 2,275 1,238 112,062	2019 £ 128,247 3,067 1,783 133,097

The average monthly number of employees paid during the year was 2 full time (2019: 2) and 11 part-time (2019: 15) who worked between 5 and 20 hours per week. The drop in staff numbers was due to COVID 19.

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020 (continued)

THORNS COMMUNITY TRUST

11. Tangible fixed assets

Fixtures & fittings £ Cost As at 2 September 2019 24,217 Additions 1,495 As at 31 August 2020 25,712 Depreciation As at 2 September 2019 19,243 Provided in year 1,617 As at 31 August 2020 20,860 Net book value As at 31 August 2020 4,852 As at 01 September 2019 4,974 12. Debtors Trade debtors Prepayments 13. Creditors: amounts falling due within one year Trade creditors Taxation and social security Accruals	Equipment £ 9,407 150 9,557 8,331 344 8,675 882 1,076 2020 £ 6,812 833 7,645 2020 £ 3,402 771 1,422 5,595	Total £ 33,624 1,645 35,269 27,574 1,961 29,535 5,734 6,050 2019 £ 6,373 1,456 7,829 2019 £ 3,567 2,464 1,514 7,545

THORNS COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2020 (continued)

14. Movement in funds

Name of fund Opening Incoming resources £ £ Restricted fund: garden project - 500 Restricted fund: JRS Claimed - 11,369 Unrestricted fund: General fund 139,071 121,458 Total of all funds 139,071 133,327 Independent examiner’s fees Other fees paid to the independent examiner - payroll costs 15. Fees for examination of the accounts	Outgoing resources £ (500) (11,369) (142,019) (153,888) 2020 £ 960 599 1,559	Closing £ - - 118,510 118,510 2019 £ 500 - 500

FILAN Accountants carried out payroll duties at a cost of £299 and processed furlough claims at a cost of £300 in the year. A separate department carried out this work to ensure independence was maintained.