**Registered number: 03835684 Charity number: 1078643**
# **RAINBOW CHILDREN'S NURSERY LIMITED**
# **(A company limited by guarantee)**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2020**
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the company, its Trustees and advisers**|1|
|**Trustees' report**|2 - 6|
|**Independent examiner's report**|7|
|**Statement of financial activities**|8|
|**Balance sheet**|9 - 10|
|**Notes to the financial statements**|11 - 22|
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020**
**Trustees** S Radford, Chair (resigned 12 November 2019) N L Edwards (appointed 20 November 2019, resigned 30 December 2020) J Dolman T Allard F Lloyd, Chair J M Botwright **Company registered number** 03835684 **Charity registered number** 1078643 **Registered office** Station Road Worstead North Walsham Norfolk NR28 9SA **Company secretary** F Lloyd **Accountants** MA Partners LLP Chartered Accountants 7 The Close Norwich Norfolk NR1 4DJ
Page 1
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020**
The Trustees present their annual report together with the financial statements of the company for the year 1 September 2019 to 31 August 2020. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) as amended by Update Bulletin 1.
Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Objectives and activities**
## **a. Policies and objectives**
In setting objectives and planning activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit.
The principle aims and objectives of the company are to enhance the education of children through the provision of a nursery setting; providing high quality childcare, teaching and learning by adhering to and practicing the standards laid down by the Early Years Foundation Stage on a non-profit basis. Session times will be flexible with the offering of funded places to parents and families including those in financial need.
## **b. Strategies for achieving objectives**
The company will always be aiming to maintain the standard at which it currently runs. To enable this we will maintain staff qualifications and training to ensure best practice is used, new training and qualifications will be accessed where necessary to continuously improve the company going forward. Communication is key to the company’s success, with all employees striving for the same goals and outcomes. Ongoing communication with parents / carers supports a positive home and nursery working relationship for the best interests of the child. To obtain sufficient quality resources the company uses a range of fundraising techniques.
## **c. Activities undertaken to achieve objectives**
Staff undertake a variety of training courses, accessing both face to face and online taught training to promote high quality care, teaching and learning. Regular staff meetings take place giving all a voice and encouraging discussion about the setting and continuous development. Many fundraising activities are undertaken such as quiz nights and raffles, the children also become involved in fundraising by engaging in activities such as arts and crafts which can be sold at a small fee. Tapestry, an online learning journal, is completed weekly for each child, giving parents access to the most recent learning their child has been participating in. Parents are encouraged to add to this from home to make it a shared learning document.
## **d. Main activities undertaken to further the company's purposes for the public benefit**
The company provides very flexible childcare sessions which allow parents to arrange nursery times around work more easily. We aim to provide inclusive childcare for the whole community; working parents, funded places, low income families and SEND children and families. Children have the opportunity to access engaging, inspiring and age appropriate activities alongside social interactions with peers that cannot always be accessed within the home environment; covering all areas of learning and ultimately working towards school readiness.
Page 2
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
## **Achievements and performance**
## **a. Main achievements of the company**
The Trustees and management have worked to maintain the nursery that is financially viable and operating well. The Trustees are developing both their own roles and those of the nursery management to maintain and improve this level of operation.
The nursery was inspected by Ofsted on 29 August 2018 and was graded overall "good". This is recognition for the hardworking management and staff team who have worked tirelessly to raise the standards within the nursery. The nursery has set a target to attain an "outstanding" judgement in the next assessment.
In consultation with the nursery management, the nursery has been operating a highly flexible approach to both session times and session uptake. This has allowed the nursery to cater for shift workers with changing shift patterns in addition to parents wanting casual hours childcare.
The Trustees would like to recognise the performance and dedication of the management team in maintaining and improving the standards within the nursery and the service received by our parents.
## **b. Fundraising activities and income generation**
Our usual main open day annual event was unavoidably cancelled. We were fortunate enough to have a donation from Waitrose early in the year.
Fundraisers we achieved in limited circumstances included a quiz night, halloween party, raffles, easyfundraising.org, christmas cards, a colouring competition and a fun 'guess how many sweets were in the jar.'
Our fundraising committee was put on hold this year.
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company is projected to have sufficient income to meet its financial liabilities as they fall due and for this reason the Trustees continue to adopt the going concern basis in preparing the financial statements.
## **b. Reserves policy**
It is the intention of the Trustees to build up a level of reserves to enable the company to meet operating expenditure for 2 months, amounting to approximately £50,000. As at 31 August 2020, the company had free reserves (unrestricted funds excluding fixed assets and bank loans) of £46,377.
## **c. Principal funding**
The company’s principal funding source is from nursery fees.
Page 3
## **RAINBOW CHILDREN'S NURSERY LIMITED (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
## **d. Financial summary**
Income resources amounted to £289,303. After incurring costs of £294,774 the net expense for the period amounted to £5,471 as shown on page 8.
During the year, at the point the nursery closed, we took advantage of the offered 12 month payment holiday on our mortgage. The interest element of £125 was still due and proving manageable.
When COVID-19 started, we furloughed as many of our staff as possible. As and when it was allowable, we reintroduced children and staff gradually, keeping within expected limits and guidance. The staffing ratios were maintained within the Ofsted regulations.
Children numbers declined sharply in September 2019 in line with the normal trend. As a result of the pandemic, we had no children in April and May and numbers were not at our usual high capacity in June, July and August. Please note that this position changed significantly in the next financial year, starting from an approximate 30% increase from September 2020.
## **e. Investments policy**
The company does not have funds available for long term investment and therefore funds not immediately required are on bank deposit.
## **Structure, governance and management**
## **a. Constitution**
The organisation is a charitable company limited by guarantee, incorporated on 3 September 1999 and registered as a charity on 16 December 1999. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
## **b. Methods of appointment or election of Trustees**
The company aims to recruit Trustees with a wide range of business and sector experience from which the company will benefit. Under the Articles of Association, Trustees co-opted during the year must stand down at the AGM and stand for re-election. One third of the Trustees must retire at each AGM.
## **c. Policies adopted for the induction and training of Trustees**
New Trustees are provided with copies of:
- The company’s Memorandum and Articles of Association
- The latest accounts of the company
- Charity Commission guidance notes CC3 – “The Essential Trustee”
In addition Trustees are encouraged to read Charity Commission and other newsletters and to attend courses designed to keep them abreast of their duties and responsibilities.
Page 4
## **RAINBOW CHILDREN'S NURSERY LIMITED (A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
## **Structure, governance and management (continued)**
## **d. Organisational structure and decision making**
The Trustees, who meet monthly, administer the company. The day to day operations of the company are managed by the Nursery and Business Manager, Deputy Manager and an Office Manager.
The Trustees have plans to re-establish a fundraising sub-committee to organise and plan fundraising activities.
## **e. Risk management**
The Trustees have reviewed the major risks to the company in accordance with the Statement of Recommended Practice and do not consider there are any significant matters of concern.
## **Plans for future periods**
To continue to increase the profile of the nursery through local advertising and via social media (namely a public Facebook page).
Maintain a constant uptake of new Trustees as we recognise the issue that some Trustees wish to leave post when their child leaves nursery for school.
To continue to review the fee structure including meal charges to keep up with the national minimum / living wage increases.
To work towards obtaining an 'outstanding' Ofsted rating.
To review the feasibility of extending our baby room capacity.
Page 5
RAINBOW CHILDREN'S NURSERY LIMITED
{A company limited by guarantee)
TRUSTEES. REPORT ICONTINUEDI
FOR THE YEAR ENDED 31 AUGUST 2020
Statsment of Trustees. responsibilities
The Trustees {who are also the directors of the company for the ptjrposes of company lawl are responsible for
preparing the Trustees, report and the financi31 statements in accordan with applicable law and United
Kiwom Accounting Standards (Untted Kingdom Generally Accepted Accounting Practi1.
Company law requires the Trustees to prepare financial st*ements for each financial year. Under company law,
the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair
view of the slate of affairs of the company and of its incoming resources ancl 2ppliealion of resources, including
ils income and expenditure. for that perl_ In preparing these financial statements. the Trustees are required lo..
select suitable accounting policies and then appty them o)ngislently.
observe the methods and principles of the Chattties SORP IFRS 1021",
ake judgments and accounting estimates that are reasonable and prudent,.
state whether applicable UK Accounting Standards IFRS 1021 have been followed, subject lo any material
departures disclosed and explained in the financial statements".
prepare the financial statements on the going Conrn basis unless it is inappropriate lo presume that the
company will continue in business.
The Trustees are responsib ft)r keeping 8dequ8te accounting records that are sufticienl lo show and explain
the company's ttansactions and ¢Jisclose wrth reasonable accuracy at any time the financial posrtion of the
company aTrd enable them to ensure that the financtal slalements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularitsès.
Approved by order of the members crf the board of Twstees and signed on their behalF by.
T Allard
Dale..
Page 6
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2020**
## **Independent Examiner's Report to the Trustees of Rainbow Children's Nursery Limited ('the company')**
I report to the charity Trustees on my examination of the accounts of the company for the year ended 31 August 2020.
## **Responsibilities and Basis of Report**
As the Trustees of the company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent Examiner's Statement**
Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.
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.
This report is made solely to the company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's Trustees as a body, for my work or for this report.
Signed: Dated: 21[st] May 2021
Mr F M E Shippam BSc FCA DChA
## **MA Partners LLP**
Page 7
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020**
|**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
**Total income**
**Expenditure on:**
Raising funds
7
Charitable activities
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2020**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**6**
**6**
**(6)**
**6**
**(6)**
**-**|**Unrestricted**
**funds**
**2020**
**£**
**17**
**254,294**
**34,919**
**73**
**289,303**
**-**
**294,768**
**294,768**
**(5,465)**
**125,394**
**(5,465)**
**119,929**|**Total**
**funds**
**2020**
**£**
**17**
**254,294**
**34,919**
**73**
**289,303**
**-**
**294,774**
**294,774**
**(5,471)**
**125,400**
**(5,471)**
**119,929**|_Total_
_funds_
_2019_
_£_
_-_
_284,321_
_1,930_
_52_|
|---|---|---|---|---|
|||||_286,303_|
|||||_574_
_275,824_|
|||||_276,398_|
|||||_9,905_|
|||||_115,495_
_9,905_|
|||||_125,400_|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 11 to 22 form part of these financial statements.
Page 8
## **RAINBOW CHILDREN'S NURSERY LIMITED (A company limited by guarantee) REGISTERED NUMBER: 03835684**
## **BALANCE SHEET AS AT 31 AUGUST 2020**
|**Note**
**Fixed assets**
Tangible assets
12
**Current assets**
Debtors
13
Investments
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
16
**Total net assets**
**Charity funds**
Restricted funds
17
Unrestricted funds
17
**Total funds**|**4,917**
**255**
**53,792**
**58,964**
**(15,184)**|**2020**
**£**
**154,605**
**154,605**
**43,780**
**198,385**
**(78,456)**
**119,929**
**-**
**119,929**
**119,929**|_6,432_
_255_
_56,680_
_63,367_
_(20,831)_|_2019_
_£_
_161,405_
_161,405_
_42,536_
_203,941_
_(78,541)_
_125,400_
_6_
_125,394_
_125,400_|
|---|---|---|---|---|
Page 9
RAINBOW CHILDREN'S NURSERY UMITED
IA company limited by guarantee)
REGISTERED NUMBER: 03835684
BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2020
Thè company wa8 enlilled to exemption from audrt under section 471 of the Companie5 Act 2006.
The members have not required the company to obtain an audit for the year in question in aceordance wrth
sectB)n 476 of Companies Act 2006.
The Trustee5 acknowtedge their respcmsibiliiies for cornpng yth the requirements of the Act with respect lo
accounting records and preparalron of financial slalements.
The financial statements have been prepared in accordan wrth the provisions applicable to entities subject lo
the small companies regime.
The finaneial slalements were approved and authoris8d for issue by the Trustees and sned on theii behaLf by..
T Ajlanl
Dale..
The notes on pages 11 to 22 fomi part of these financial statements.
Page 10
## **RAINBOW CHILDREN'S NURSERY LIMITED (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **1. Company status**
The company is a company limited by guarantee and a company incorporated in England and Wales. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements 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 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Rainbow Children's Nursery Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **2.2 Income**
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
## **2.3 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.
## **2.4 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 11
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **2. Accounting policies (continued)**
## **2.4 Tangible fixed assets and depreciation (continued)**
Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
- Freehold property 2% straight line - Property improvements 10% straight line - Office equipment 25% reducing balance / straight line - Computer equipment 25% straight line
## **2.5 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.6 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.7 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
## **2.8 Financial instruments**
The company only 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.9 Pensions**
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
Page 12
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **2. Accounting policies (continued)**
## **2.10 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **3. Income from donations and legacies**
||**Unrestricted**|**Total**|_Total_|
|---|---|---|---|
||**funds**|**funds**|_funds_|
||**2020**|**2020**|_2019_|
||**£**|**£**|_£_|
|Donations|17|**17**|_-_|
## **4. Income from charitable activities**
|**Unrestricted**
**funds**
**2020**
**£**
Fees rendered
137,259
Grants received
117,035
254,294|**Total**
**funds**
**2020**
**£**
**137,259**
**117,035**
**254,294**|_Total_
_funds_
_2019_
_£_
_177,402_
_106,919_|
|---|---|---|
|||_284,321_|
Page 13
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **5. Income from other trading activities**
## **Income from fundraising events**
|**Unrestricted**
**funds**
**2020**
**£**
Fundraising income
1,226
Furlough income
33,693
34,919
**6.**
**Investment income**
**Unrestricted**
**funds**
**2020**
**£**
Investment income
73
**7.**
**Expenditure on raising funds**
**Costs of raising voluntary income**
**Unrestricted**
**funds**
**2020**
**£**
Costs of generating voluntary income
-|**Total**
**funds**
**2020**
**£**
**1,226**
**33,693**
**34,919**
**Total**
**funds**
**2020**
**£**
**73**
**Total**
**funds**
**2020**
**£**
**-**|_Total_
_funds_
_2019_
_£_
_1,930_
_-_|
|---|---|---|
|||_1,930_|
|||_Total_
_funds_
_2019_
_£_
_52_|
|||_Total_
_funds_
_2019_
_£_
_574_|
Page 14
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **8. Analysis of expenditure by activities**
|Nursery activities
_Total 2019_|**Activities**
**undertaken**
**directly**
**2020**
**£**
275,446
_254,500_|**Support**
**costs**
**2020**
**£**
19,328
_21,324_|**Total**
**funds**
**2020**
**£**
**294,774**
_275,824_|_Total_
_funds_
_2019_
_£_
_275,824_|
|---|---|---|---|---|
||||||
## **Analysis of direct costs**
|Staff costs
Light and heat
Property repairs and maintenance
Hygiene and cleaning
Consumables and equipement
Meals and refreshments
Equipment hire
Insurance
Bad debts
Water
Sundry expenses|**Total**
**funds**
**2020**
**£**
**233,899**
**8,081**
**7,855**
**6,833**
**5,735**
**5,282**
**3,384**
**2,627**
**1,100**
**584**
**64**
**275,446**|_Total_
_funds_
_2019_
_£_
_213,267_
_6,419_
_6,201_
_7,785_
_4,439_
_7,443_
_5,558_
_2,607_
_220_
_561_
_-_|
|---|---|---|
|||_254,500_|
Page 15
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **8. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Depreciation
Governance costs
Telephone
Loan interest payable
Subscriptions
Postage and stationery
Computer costs
Advertising
Training
Legal and professional fees
Bank charges and interest
Sundry expenses|**Total**
**funds**
**2020**
**£**
**7,019**
**2,435**
**1,892**
**1,832**
**1,068**
**1,314**
**972**
**910**
**894**
**513**
**334**
**145**
**19,328**|_Total_
_funds_
_2019_
_£_
_7,243_
_1,917_
_2,657_
_2,206_
_1,220_
_1,471_
_2,965_
_437_
_534_
_73_
_368_
_232_|
|---|---|---|
|||_21,324_|
## **9. Independent examiner's remuneration**
The independent examiner's remuneration amounts to an independent examiner fee of £850 _(2019 - £850)_ , and other accountancy fees of £1,067 ( _2019_ - _£1,070_ ).
## **10. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2020**
**£**
**218,794**
**11,442**
**3,663**
**233,899**|_2019_
_£_
_201,099_
_8,412_
_3,756_|
|---|---|---|
||||
|||_213,267_|
Page 16
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **10. Staff costs (continued)**
The average number of persons employed by the company during the year was as follows:
|Managers and supervisors
Nursery nurses, assistants and cooks
Administration|**2020**
**No.**
**5**
**11**
**1**
**17**|_2019_
_No._
_4_
_10_
_1_|
|---|---|---|
||||
|||_15_|
No employee received remuneration amounting to more than £60,000 in either year.
## **11. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2019 - £NIL)_ .
During the year ended 31 August 2020, no Trustee expenses have been incurred _(2019 - £NIL)_ .
Page 17
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **12. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2019
Additions
At 31 August 2020
**Depreciation**
At 1 September 2019
Charge for the year
At 31 August 2020
**Net book value**
At 31 August 2020
_At 31 August 2019_
**13.**
**Debtors**
**Due within one year**
Trade debtors
Prepayments and accrued income
**14.**
**Current asset investments**
Unlisted investments|**Freehold**
**property**
**£**
**248,257**
**-**
**248,257**
**88,450**
**6,533**
**94,983**
**153,274**
_159,806_|**Office**
**equipment**
**£**
**44,218**
**160**
**44,378**
**42,959**
**358**
**43,317**
**1,061**
_1,260_||**Computer**
**equipment**
**£**
**5,319**
**59**
**5,378**
**4,980**
**128**
**5,108**
**270**
_339_
**2020**
**£**
**4,359**
**558**
**4,917**
**2020**
**£**
**255**|**Total**
**£**
**297,794**
**219**|
|---|---|---|---|---|---|
||||||**298,013**|
||||||**136,389**
**7,019**|
||||||**143,408**|
||||||**154,605**|
||||||_161,405_|
||||||_2019_
_£_
_6,090_
_342_
_6,432_
_2019_
_£_
_255_|
Page 18
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **15. Creditors: Amounts falling due within one year**
|Bank loan
Trade creditors
Other taxation and social security
Accruals and deferred income
Deferred income at 1 September 2019
Resources deferred during the year
Amounts released from previous periods|**2020**
**£**
**2,597**
**4,386**
**2,751**
**5,450**
**15,184**
**2020**
**£**
**3,921**
**3,455**
**(3,921)**
**3,455**|_2019_
_£_
_6,125_
_6,219_
_2,631_
_5,856_|
|---|---|---|
||||
|||_20,831_|
|||_2019_
_£_
_3,529_
_3,921_
_(3,529)_|
||||
|||_3,921_|
The bank loan is secured by a legal charge over the freehold property.
## **16. Creditors: Amounts falling due after more than one year**
Bank loan
|**2020**|_2019_|
|---|---|
|**£**|_£_|
|**78,456**|_78,541_|
The bank loan is being repaid monthly, there was a mortgage holiday during the year up to the end of March 2021 where the mortgage was interest only.
The bank loan is secured by a legal charge over the freehold property.
Page 19
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **17. Statement of funds**
|**Statement of funds - current year**
**Unrestricted funds**
General Funds
**Restricted funds**
Out of School Club
**Total of funds**
**Statement of funds - prior year**
**Unrestricted funds**
General Funds
**Restricted funds**
Out of School Club
**Total of funds**|**Balance at 1**
**September**
**2019**
**£**
**125,394**
**6**
**125,400**
_Balance at_
_1 September_
_2018_
_£_
_115,487_
_8_
_115,495_|**Income**
**£**
**289,303**
**-**
**289,303**
_Income_
_£_
_286,303_
_-_
_286,303_|**Expenditure**
**£**
**(294,768)**
**(6)**
**(294,774)**
_Expenditure_
_£_
_(276,396)_
_(2)_
_(276,398)_|**Balance at**
**31 August**
**2020**
**£**
**119,929**|
|---|---|---|---|---|
|||||**-**|
|||||**119,929**|
|||||_Balance at_
_31 August_
_2019_
_£_
_125,394_|
|||||_6_|
|||||_125,400_|
Page 20
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **18. Summary of funds**
|**Summary of funds - current year**
General funds
Restricted funds
**Summary of funds - prior year**
General funds
Restricted funds|**Balance at 1**
**September**
**2019**
**£**
**125,394**
**6**
**125,400**
_Balance at_
_1 September_
_2018_
_£_
_115,487_
_8_
_115,495_|**Income**
**£**
**289,303**
**-**
**289,303**
_Income_
_£_
_286,303_
_-_
_286,303_|**Expenditure**
**£**
**(294,768)**
**(6)**
**(294,774)**
_Expenditure_
_£_
_(276,396)_
_(2)_
_(276,398)_|**Balance at**
**31 August**
**2020**
**£**
**119,929**
**-**|
|---|---|---|---|---|
|||||**119,929**|
|||||_Balance at_
_31 August_
_2019_
_£_
_125,394_
_6_|
|||||_125,400_|
## **19. Analysis of net assets between funds Analysis of net assets between funds - current period**
|**Unrestricted**
**funds**
**2020**
**£**
Tangible fixed assets
154,605
Current assets
58,964
Creditors due within one year
(12,587)
Creditors due in more than one year
(81,053)
**Total**
119,929|**Total**
**funds**
**2020**
**£**
**154,605**
**58,964**
**(12,587)**
**(81,053)**|
|---|---|
||**119,929**|
Page 21
## **RAINBOW CHILDREN'S NURSERY LIMITED**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **19. Analysis of net assets between funds (continued)**
## **Analysis of net assets between funds - prior period**
|Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|_Restricted_
_funds_
_2019_
_£_
6
-
-
-
6|_Unrestricted_
_funds_
_2019_
_£_
161,399
63,368
(20,832)
(78,541)
125,394|_Total_
_funds_
_2019_
_£_
_161,405_
_63,368_
_(20,832)_
_(78,541)_
_125,400_|
|---|---|---|---|
## **20. Pension commitments**
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund. No amounts were payable to the fund at the balance sheet date.
## **21. Related party transactions**
The company has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the company at 31 August 2020.
Page 22