**REGISTERED COMPANY NUMBER: 03658981 (England and Wales) REGISTERED CHARITY NUMBER: 1081067** 

## **REPORT OF THE TRUSTEES AND** 

**UNAUDITED FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31ST AUGUST 2020** 

## **FOR** 

## **HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

Whitehead & Howarth 327 Clifton Drive South Lytham St Annes Lancashire FY8 1HN 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31ST AUGUST 2020** 

|||**Page**||
|---|---|---|---|
|**Reference and Administrative Details**||1||
|**Report of the Trustees**|2|to|7|
|**Independent Examiner's Report**||8||
|**Statement of Financial Activities**||9||
|**Balance Sheet**|10|to|11|
|**Notes to the Financial Statements**|12|to|19|
|**Detailed Statement of Financial Activities**|20|to|21|





**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **REFERENCE AND ADMINISTRATIVE DETAILS for the Year Ended 31ST AUGUST 2020** 

|**TRUSTEES**|H C Atkinson|
|---|---|
||C E Barnes|
||D G Brown|
||E A Hodgson|
||P M Gibbons|
|**COMPANY SECRETARY**|C E Barnes|
|**REGISTERED OFFICE**|327 Clifton Drive South|
||Lytham St Annes|
||Lancashire|
||FY8 1HN|
|**PRINCIPAL ADDRESS**|Clarendon Road North|
||Lytham St Annes|
||Lancashire|
||FY8 3EE|
|**REGISTERED COMPANY**|03658981 (England and Wales)|
|**NUMBER**||
|**REGISTERED CHARITY**|1081067|
|**NUMBER**||
|**INDEPENDENT EXAMINER**|Whitehead & Howarth|
||327 Clifton Drive South|
||Lytham St Annes|
||Lancashire|
||FY8 1HN|
|**BANKERS**|TSB Bank Plc|
||25-27 Birley Street|
||Blackpool|
||Lancashire|
||FY1 1EG|
|**HONORARY PRESIDENT**|Mrs Elaine Nightingale|



Page 1 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **REPORT OF THE TRUSTEES** 

## **for the Year Ended 31ST AUGUST 2020** 

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st August 2020. 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** 

To advance the education of children below compulsory school age by providing or assisting in the provision of educational recreational and other charitable facilities and to advance the education of pupils attending Heyhouses Endowed Church of England Primary School by furthering the charitable purposes of the Heyhouses Endowed Church of England Primary School Fund. The charity may make donations from surplus funds to Heyhouses Church of England Primary School as stated in the charity's objectives. 

- To provide a broad and balanced curriculum which promotes the physical, intellectual, emotional, social and moral 

- developments of each child regardless of sex, class or disability. 

- To provide an environment and atmosphere in which every child and adult feels secure, valued and confident. 

• The nursery curriculum is designed to develop continuity and progression within the agreed guidelines from the age of three until the end of the Reception year. 

- All children are given the full range of learning opportunities through activities promoting knowledge skills and 

- understanding. 

- The curriculum content is mainly skill based with new activities and ideas introduced through a thematic approach. 

- The approach to learning is emphasis through 'talk' and 'play' both indoors and outdoors, namely: 

- Exploratory Play 

- Imaginative Play, 

- Structured and Unstructured Play 

## **Comment** 

It is evident to all trustees that staff at Heyhouses Nursery ensure that these aims and objectives are met. Nursery is a stimulating and happy environment where children develop as individuals and as a socially interactive group. Extremely favourable comments in parental surveys confirmed their satisfaction with the standard of education and care provided. 

## **Mission Statement** 

We seek to enable children to reach their full potential educationally, spiritually and socially so that they may become all that God has created them to be. 

## **Public benefit** 

The trustees consider that the main activities undertaken by the charity to carry out its charitable purposes are for the public benefit and furthermore they consider that they have complied with their duty to have due regard to the commission’s public benefit guidance when exercising any powers or duties to which the guidance is relevant. 

## **Volunteers and students** 

Nursery staff and trustees are grateful for the regular and valuable contribution of volunteers, special support workers and students from the local college for their valuable input of activities. 

Mrs Leanne Phillips volunteered to support literacy in nursery. She has set up and successfully runs a library for the nursery children. We are also pleased to report that an ex-nursery & pupil of Heyhouses, Grace Strickland joined the volunteer team during July 2020. 

Miss Jessica Cuff was a valuable student during the autumn and spring terms. 

Page 2 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **REPORT OF THE TRUSTEES** 

## **for the Year Ended 31ST AUGUST 2020** 

## **ACHIEVEMENT AND PERFORMANCE Charitable activities Finance** 

The payment of fees continues to create the majority of the charities income. Parents are entitled to 15 hours per week for 38 weeks of funded care from the LEA the term after the child's third birthday, this is now called Funding for Early Years (FEE). This is also now available for two year olds who meet the criteria. 

This year has seen the continuation of the 30 hours funded provision which was introduced under a government initiative and is well embedded into the system, however this continues to have an impact on the finances of the nursery. The number of families accessing the additional (Enhanced) 15 hours remained at 20 families. Parents were happy to  adhere to this ruling and several agree to pay the additional fees. Trustees are confident that they are fulfilling the requirements of the scheme by providing the enhanced hours in support of working parents. 

Early Years Pupil Premium continues to be paid to FEE children aged 3-4 who meet the criteria. This year 8 children accessed the additional funding which was used to support ball skill sessions provided by the YMCA as well as supporting these children with additional sessions and covering the costs of hot meals and providing SEN support. 

Additional finance was raised through fundraising events. 

Trustees will consider family circumstances and use their discretion to waive or reduce fees for children who have special/specific needs or whose pre-school years will by significantly enhanced by attendance at Heyhouses Nursery. The guiding principle when considering such cases is that no child who needs our support should be prevented from attending our nursery by a financial barrier. During 2019-2020, trustees supported two children. Due to family circumstances it was beneficial for one child to be in nursery 3 full days each week and the other who required a hot meal at lunchtime. 

## **Accommodation** 

Heyhouses C of E Nursery is located in a new purpose built brick building which is located on land owned by The Lytham Schools Trust on Clarendon Road North, Lytham St Annes. This was the fifth year in the new build. 

## **Staffing** 

Staffing levels have remained constant throughout the year. 

Mrs Jean Knight returned to both her nursery and domestic roles following her knee replacement operation. 

Miss Robyn Whiteside was promoted to Deputy in November 2020. 

Mrs Julie Ward stepped down as deputy to focus on her SEN role. 

Mrs Sarah Lowry resigned in October, for personal reasons. 

Mrs Janet Stevens indicated her intention to retire in August 2020, which she duly took. 

Mrs Wendy Mason also retired at the end of August for personal reasons. 

The Performance Management continues to work well with Mr Clive Barnes as the lead with Joanne Kaced in a supporting role. 

Lead Practitioner Status was again awarded to the nursery. The nursery continues to be used as an example of good practice to other nurseries throughout Lancashire, although there is no additional funding for the status. 

Breakfast Club & After Nursery School Club 

Page 3 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **REPORT OF THE TRUSTEES** 

## **for the Year Ended 31ST AUGUST 2020** 

These clubs continue to operate very well under the leadership of Miss Robyn Whiteside & Miss Sam Surtees and Miss Darcy Porter 

## **Grants** 

No grants were available this year for nursery resources 

## **Quality Award** 

Following the completion of the Lancashire Quality Award (LQA) in March 2014 nursery staff continue to ensure that the quality of care and education is upheld. 

## **Ofsted** 

The nursery was inspected 14 January 2016 and was graded as 'Outstanding' in ALL areas. The inspector could not find any areas for improvement she praised all areas of the nursery and advised nursery to "devise even more ways to enrich children's love of books and storytelling while outside". This was already part of the development plan. It was an excellent report. Since the report Mrs Kaced and the senior management team have continued to update and progress the development plan to ensure nursery provision remains of the highest standard. 

## **Communication** 

At Heyhouses Nursery we recognise the privileged position we have when parents entrust the care of their young children to us. Our work is very much in partnership with those parents and carers and good communication is vital. We issue weekly newsletters and regular emails with information regarding activities and events taking place. Two detailed newsletters are produced each term, these are also sent to families whose children will be joining the nursery in the future. 

This year saw the introduction of a nursery Facebook page which has enhanced the impact on communication. 

A meeting is held for parents and carers of new starters in the Summer Term. Open Evenings and Parent Workshops are held throughout the year for families of children currently attending nursery and to those who are looking for nursery provision in the future. 

At the end of the Summer Term a transition report is prepared on the progress of all children. 

Feedback is encouraged from parents and carers on a regular basis particularly after open evenings and parent workshops. 

Informal meetings are held throughout the year when parents have the opportunity to discuss progress etc with their child's key person. 

During the Spring and Summer Terms staff from the Reception Department would normally visit nursery to take part in 'storytime' and small groups of nursery children are taken to the Reception Department during the Summer Term,. This is valuable work as it supports the transition of children from nursery to school and is welcomed by staff and parents. 

## **Pandemic - COVID-19** 

The New Year started as normal for everyone, news that a pandemic which had started in China was spreading into Europe. Nursery continued to operate through the first half of the Spring Term, but then the country went into a full lockdown.  The impact on nursery was as follows: 

- Nursery closed on Friday 19th March 2020 

- We opened again for children of Key Workers in April, it soon became clear that a better service could be provided if nursery worked alongside school to provide the care and this worked successfully. 

- Care was provided over the Easter and half term holidays in the summer term 

Page 4 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **REPORT OF THE TRUSTEES** 

## **for the Year Ended 31ST AUGUST 2020** 

• As lockdown was relaxed the number of children requiring care increased and it became necessary to re-open nursery following a deep clean in the middle of June 

• During lockdown thirteen staff were furloughed, with some returning to work during the second half of the summer term 

• Nursery trustees agreed to continue to pay 100% of salaries until 31st August when it would be reviewed. It was not necessary to continue furloughing staff from September 2020 

• Breakfast & After School fees had to be refunded for the spring term along with fees received for the nursery families, so this had a significant impact on the finances. Fee invoices of £31,481were cancelled in the year contributing to a major part in the reduction in income. 

## **Fundraising activities** 

The 'Friends of Heyhouses Nursery' continued to work hard raising valuable additional funds for nursery. This money was used to purchase various resources for nursery. 

We are very grateful to parents who supported nursery in raising these additional funds. Fundraising events this year were reduced due to the restrictions imposed by the pandemic.  The Friends managed to oversee two fundraising efforts: 

- Christmas Fair - December 

- Christmas Cards 

## **FINANCIAL REVIEW** 

## **Financial position** 

Net income as disclosed in the Statement of Financial Activities is £12,150, surplus, (2019:£31,773 surplus), and reserves are £445,518, (2019:£433,368) All reserves are unrestricted.. 

## **Investment policy and objectives** 

Under the Memorandum and Articles of Association, the charity has the power to make any investment which the trustees see fit. The trustees have considered the most appropriate policy for investing funds and have found that immediate access bank accounts meet the requirement to allow the funds to be readily available, surplus funds have been invested in shares which will produce dividend income and do not have any material risk. 

## **Reserves policy** 

The trustees have examined the charity's requirements for reserves in the light of the main risks to the organization. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be between three and six months of the expenditure. 

The reserves are needed to meet the working capital requirements of the charity and the trustees are confident that at  this level they would be able to continue the current activities of the charity in the event of a significant drop in funding. The present level of reserves available to the charity at 31 August 2020 are £445,518. 

## **Going concern** 

The Trustees have considered the financial circumstances of the charity at the year end and determined that the going concern basis is appropriate. 

Page 5 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **REPORT OF THE TRUSTEES** 

## **for the Year Ended 31ST AUGUST 2020** 

## **FUTURE PLANS** 

Plans for Future Periods 

Money raised through fundraising will continue to be used to develop the resources and equipment in the nursery in line with the requirements of the EYFS and to ensure resources which are used inside are also provided for use in the outdoor area. The Development Plan clearly outlines the focus for the coming year. This year due to the pandemic the wellbeing of the children and staff are the main focus points this year: 

## The Quality of Education 

• To continue developing 'Planning in the Moment' and building on what we have achieved so far 

• To focus on the environment both inside and out 

## Positive Relationships 

- To support well-being for ALL children and staff 

## Leadership and Management 

- To support changes to the organisation structure in view of changes anticipated in 2020-2021 

- To continue to raise practitioners professional development 

Nursery was at 88.5% capacity from  January to March 2020, an increase of 3.5% on the previous year. 

Napthens Solicitors continued to be a support for the reclamation of debts and supporting the trustees with HR. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. 

## **Recruitment and appointment of new trustees** 

The directors of the company are also charity trustees for the purposes of charity law and also constitute the management committee. The directors may appoint a person who is willing to act as a director, either to fill a vacancy or as an additional director provided that the maximum of five as set by the articles is not exceeded. The directors would seek to appoint a director from a member of the governing body of Heyhouses C of E Primary School. All directors presenting themselves for re-election will be deemed to have been re-elected unless at the annual general meeting it is resolved not to fill a vacancy or unless a resolution for the re-appointment of the director is put to the meeting and lost. 

## **Trustees meetings** 

Meetings are held at least twice per year to review progress. Meetings of the Nursery Management Team comprising Clive Barnes, Elizabeth Hodgson, Helen Atkinson, Denise Brown and Joanne Kaced are held as and when required to discuss and decide upon matters of policy, staffing, finance, budgeting and pay review. The Chairman or other appointed trustee meets with all staff at least twice a year. 

Page 6 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **REPORT OF THE TRUSTEES** 

## **for the Year Ended 31ST AUGUST 2020** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Induction and training of new trustees** 

The trustees are already familiar with the practical work of the charity and additionally are invited and encouraged to attend meetings and training sessions to familiarise themselves with the charity and the context within which it operates and cover:- 

## • The obligations of trustees, 

- The main documents which set out the operational framework for the charity including the Memorandum and 

- articles, 

- Resourcing and the current financial position as set out in the latest published accounts and financial 

- management information, 

- Future plans and objectives. 

New trustees would be invited to the setting to familiarise themselves with the work of the charity. They would also be provided with a handbook containing full details of the work of the charity along with the Memorandum and Articles of Association and the latest financial statements. New trustees would have an induction programme followed by an analysis of this induction. 

## **Key management remuneration** 

Mrs D G Brown the nursery business manager and trustee is regarded as key management personnel and received remuneration as detailed in note 5 of the financial statements. 

## **Related parties** 

The Eco Pod 

Trustees continue to work closely with school in developing the use of the EcoPod. Trustees wish to record their gratitude to Richard James for the continued support he has given and continues to give to nursery in relation the Pod. The Charity Incorporated Organisation has been set up. One trustee and one member of staff from the Nursery will serve as trustees of the new CIO, named pod@heyhouses.  Nursery has designated times to use the eco pod. 

A long term arrangement was made with the St Johns' Ambulance for them to deliver training in the Pod on a weekly basis, generating a regular income, however this was interrupted by the Coronavirus. 

Transactions with related parties are as detailed in note 17 of the financial statements. 

## **Risk management** 

The trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Internal control risks are minimised by the implementation of procedures consistent with the activities of the charity and in accordance with Ofsted inspections. Procedures are in place to ensure compliance with health and safety of staff, children, volunteers and visitors to the nursery. These procedures are reviewed annually to ensure that they continue to meet the needs of the charity. 

Approved by order of the board of trustees on 12th May 2021 and signed on its behalf by: 

C E Barnes - Trustee 

Page 7 



## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **Independent examiner's report to the trustees of Heyhouses Church of England Nursery School Limited ('the Company')** 

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st August 2020. 

## **Responsibilities and basis of report** 

As the charity's trustees of the Company (and also 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 your charity's accounts as 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 your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW 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 (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). 

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. 

C.L.Higgins FCA ICAEW Whitehead & Howarth 327 Clifton Drive South Lytham St Annes Lancashire FY8 1HN 

17th May 2021 

Page 8 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31ST AUGUST 2020** 

|Unrestricted<br>fund<br>Notes<br>£<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>45,653<br>**Charitable activities**<br>Nursery provision<br>226,421<br>Other trading activities<br>2<br>-<br>Investment income<br>3<br>2,171<br>**Total**<br>274,245<br>**EXPENDITURE ON**<br>Raising funds<br>982<br>**Charitable activities**<br>Nursery provision<br>260,349<br>**Total**<br>261,331<br>Net gains/(losses) on investments<br>(764)<br>**NET INCOME**<br>12,150<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>433,368<br>**TOTAL FUNDS CARRIED FORWARD**<br>445,518|Restricted<br>fund<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|31/8/20<br>Total<br>funds<br>£<br>45,653<br>226,421<br>-<br>2,171<br>274,245<br>982<br>260,349<br>261,331<br>(764)<br>12,150<br>433,368<br>445,518|31/8/19<br>Total<br>funds<br>£<br>12,431<br>280,023<br>18<br>1,806<br>294,278<br>1,842<br>257,105<br>258,947<br>(3,558)<br>31,773<br>401,595<br>433,368|
|---|---|---|---|



The notes form part of these financial statements 

Page 9 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **BALANCE SHEET 31ST AUGUST 2020** 

|Notes<br>**FIXED ASSETS**<br>Tangible assets<br>8<br>Investments<br>9<br>**CURRENT ASSETS**<br>Stocks<br>10<br>Debtors<br>11<br>Cash at bank and in hand<br>**CREDITORS**<br>Amounts falling due within one year<br>12<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**CREDITORS**<br>Amounts falling due after more than one year<br>13<br>**NET ASSETS**<br>**FUNDS**<br>16<br>Unrestricted funds<br>**TOTAL FUNDS**|Unrestricted<br>fund<br>£<br>595,211<br>101,348<br>696,559<br>1,419<br>28,532<br>173,123<br>203,074<br>(91,865)<br>111,209<br>807,768<br>(362,250)<br>445,518|Restricted<br>fund<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|31/8/20<br>Total<br>funds<br>£<br>595,211<br>101,348<br>696,559<br>1,419<br>28,532<br>173,123<br>203,074<br>(91,865)<br>111,209<br>807,768<br>(362,250)<br>445,518<br>445,518<br>445,518|31/8/19<br>Total<br>funds<br>£<br>609,594<br>80,308<br>689,902<br>3,613<br>31,634<br>155,141<br>190,388<br>(60,172)<br>130,216<br>820,118<br>(386,750)<br>433,368<br>433,368<br>433,368|
|---|---|---|---|---|



The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st August 2020. 

The members have not required the company to obtain an audit of its financial statements for the year ended 31st August 2020 in accordance with Section 476 of the Companies Act 2006. 

The trustees acknowledge their responsibilities for 

- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and 

- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. 

The notes form part of these financial statements 

continued... 

Page 10 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **BALANCE SHEET - continued** 

## **31ST AUGUST 2020** 

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. 

The financial statements were approved by the Board of Trustees and authorised for issue on 12th May 2021 and were signed on its behalf by: 

C E Barnes - Trustee 

The notes form part of these financial statements 

Page 11 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **for the Year Ended 31ST AUGUST 2020** 

## **1. ACCOUNTING POLICIES** 

## **Basis of preparing the financial statements** 

The financial statements of the charitable company, 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 Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the  revaluation of certain assets. 

## **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** 

Tangible fixed assets are stated at cost price inclusive of directly attributable costs less cumulative depreciation, provided at the following annual rates in order to write off each asset over its estimated useful life. 

|Long leasehold|- 2% on cost|
|---|---|
|Fixtures and fittings|- 15% on reducing balance|
|Computer equipment|- 33% on cost|



Fixed asset investments comprise investments in quoted and unquoted equity instruments which are measured at fair value. Changes in fair value are recognized in profit and loss. Fair value is estimated using a valuation technique. 

## **Stocks** 

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. 

## **Government grants** 

Revenue grants are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. 

A grant that becomes receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the company with no future related costs, is recognised in income in the period in which it becomes receivable. 

## **Taxation** 

The charity is exempt from corporation 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 12 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31ST AUGUST 2020** 

## **1. ACCOUNTING POLICIES - continued** 

## **Pension costs and other post-retirement benefits** 

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. 

## **Going concern** 

The trustees have considered the potential implications of COVID-19 and the measures taken to control it's impact on the charity when assessing the entity’s ability to continue as a going concern. The consideration extended to updating forecasts and sensitivities, taking into account the risk factors identified and the different possible outcomes and assessment of its plans to mitigate events or conditions including the availability of finance if needed. On this basis the trustees have concluded that the going concern basis is appropriate. 

## **2. OTHER TRADING ACTIVITIES** 

|**2.**|**OTHER TRADING ACTIVITIES**|||
|---|---|---|---|
|||31/8/20|31/8/19|
|||£|£|
||Fundraising events|-|18|
|**3.**|**INVESTMENT INCOME**|||
|||31/8/20|31/8/19|
|||£|£|
||Deposit account interest|57|671|
||Dividend income|2,114|1,135|
|||2,171|1,806|
|**4.**|**NET INCOME/(EXPENDITURE)**|||
||Net income/(expenditure) is stated after charging/(crediting):|||
|||31/8/20|31/8/19|
|||£|£|
||Independent examiners fees|2,400|2,400|
||Depreciation - owned assets|15,652|15,919|
|**5.**|**TRUSTEES' REMUNERATION AND BENEFITS**|||
|||31/8/20|31/8/19|
|||£|£|
||Trustees' salaries|15,375|14,438|
||Trustees' social security|922|819|
||Trustees' pension contributions to money purchase schemes|276|205|
|||16,573|15,462|



Legal authority for payment was granted by the Charity Commission for England & Wales. The salary was paid to Mrs DG Brown in respect of her position as nursery business manager. 

## **Trustees' expenses** 

There were no trustees' expenses paid for the year ended 31st August 2020 nor for the year ended 31st August 2019. 

continued... 

Page 13 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31ST AUGUST 2020** 

## **6. STAFF COSTS** 

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

||||31/8/20|31/8/19|
|---|---|---|---|---|
||Nursery provision||18|18|
||No employees received emoluments in excess of £60,000.||||
|**7.**|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL**|**ACTIVITIES**|||
|||Unrestricted|Restricted|Total|
|||fund|fund|funds|
|||£|£|£|
||**INCOME AND ENDOWMENTS FROM**||||
||Donations and legacies|12,431|-|12,431|
||**Charitable activities**||||
||Nursery provision|280,023|-|280,023|
||Other trading activities|18|-|18|
||Investment income|1,806|-|1,806|
||**Total**|294,278|-|294,278|
||**EXPENDITURE ON**||||
||Raising funds|1,842|-|1,842|
||**Charitable activities**||||
||Nursery provision|257,105|-|257,105|
||**Total**|258,947|-|258,947|
||Net gains/(losses) on investments|(3,558)|-|(3,558)|
||**NET INCOME**|31,773|-|31,773|
||**RECONCILIATION OF FUNDS**||||
||**Total funds brought forward**|401,595|-|401,595|
||**TOTAL FUNDS CARRIED FORWARD**|433,368|-|433,368|



continued... 

Page 14 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31ST AUGUST 2020** 

## **8. TANGIBLE FIXED ASSETS** 

|**COST**<br>At 1st September 2019<br>Additions<br>At 31st August 2020<br>**DEPRECIATION**<br>At 1st September 2019<br>Charge for year<br>At 31st August 2020<br>**NET BOOK VALUE**<br>At 31st August 2020<br>At 31st August 2019<br>**FIXED ASSET INVESTMENTS**<br>**MARKET VALUE**<br>At 1st September 2019<br>Additions<br>Disposals<br>Revaluations<br>At 31st August 2020<br>**NET BOOK VALUE**<br>At 31st August 2020<br>At 31st August 2019|Freehold<br>premises<br>£<br>673,620<br>-<br>673,620<br>76,356<br>13,472<br>89,828<br>583,792<br>597,264|Fixtures<br>and<br>fittings<br>£<br>24,592<br>169<br>24,761<br>12,262<br>1,874<br>14,136<br>10,625<br>12,330|Computer<br>equipment<br>Totals<br>£<br>£<br>5,362<br>703,574<br>1,100<br>1,269<br>6,462<br>704,843<br>5,362<br>93,980<br>306<br>15,652<br>5,668<br>109,632<br>794<br>595,211<br>-<br>609,594<br>Listed<br>investments<br>£<br>80,308<br>57,684<br>(35,882)<br>(762)<br>101,348<br>101,348<br>80,308|
|---|---|---|---|



## **9. FIXED ASSET INVESTMENTS** 

There were no investment assets outside the UK. 

Fair value/open market value of listed investments at 31 August 2020 £101,348, (2019:£80,308). 

Page 15 

continued... 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31ST AUGUST 2020** 

|**10.**<br>**STOCKS**<br>31/8/20<br>£<br>Stocks<br>1,419<br>**11.**<br>**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>31/8/20<br>£<br>Trade debtors<br>14,368<br>Other debtors<br>8,307<br>Prepayments<br>5,857<br>28,532<br>**12.**<br>**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>31/8/20<br>£<br>Other loans (see note 14)<br>24,500<br>Social security and other taxes<br>610<br>Other creditors<br>53,472<br>Accrued expenses<br>13,283<br>91,865<br>**13.**<br>**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**<br>31/8/20<br>£<br>Other loans (see note 14)<br>362,250<br>**14.**<br>**LOANS**<br>An analysis of the maturity of loans is given below:<br>31/8/20<br>£<br>Amounts falling due within one year on demand:<br>Lytham Schools loan<br>24,500<br>Amounts falling due between two and five years:<br>Lytham Schools loan<br>98,000<br>Amounts falling due in more than five years:<br>Repayable by instalments:<br>Other loans more 5yrs instal<br>264,250|31/8/19<br>£<br>3,613<br>31/8/19<br>£<br>18,389<br>10,707<br>2,538<br>31,634<br>31/8/19<br>£<br>24,500<br>694<br>25,696<br>9,282<br>60,172<br>31/8/19<br>£<br>386,750|
|---|---|
||31/8/19<br>£<br>24,500|
||98,000|
||288,750|



Page 16 

continued... 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31ST AUGUST 2020** 

## **15. SECURED DEBTS** 

The following secured debts are included within creditors: 

||31/8/20|31/8/19|
|---|---|---|
||£|£|
|Lytham Schools loan|386,750|411,250|



The loan is secured by way of a fixed and floating charge over the assets of the charitable company. 

## **16. MOVEMENT IN FUNDS** 

|**Unrestricted funds**<br>General fund<br>**TOTAL FUNDS**<br>Net movement in funds, included in the above are as<br>**Unrestricted funds**<br>General fund<br>**TOTAL FUNDS**|follows:<br>Incoming<br>resources<br>£<br>274,245<br>274,245|At 1.9.19<br>£<br>433,368<br>433,368<br>Resources<br>expended<br>£<br>(261,331)<br>(261,331)|Net<br>movement<br>At<br>in funds<br>31.8.20<br>£<br>£<br>12,150<br>445,518<br>12,150<br>445,518<br>Gains and<br>Movemen<br>losses<br>in funds<br>£<br>£<br>(764)<br>12,150<br>(764)<br>12,150|At<br>31.8.20<br>£<br>445,518|
|---|---|---|---|---|
|||||445,518|
|||||12,150|



## **Comparatives for movement in funds** 

|**Unrestricted funds**<br>General fund<br>**TOTAL FUNDS**|At 1.9.18<br>£<br>401,595<br>401,595|Net<br>movement<br>in funds<br>£<br>31,773<br>31,773|At<br>31.8.19<br>£<br>433,368|
|---|---|---|---|
||||433,368|



continued... 

Page 17 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31ST AUGUST 2020** 

## **16. MOVEMENT IN FUNDS - continued** 

Comparative net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>294,278<br>294,278|Resources<br>expended<br>£<br>(258,947)<br>(258,947)|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>(3,558)<br>31,773<br>(3,558)<br>31,773|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>(3,558)<br>31,773<br>(3,558)<br>31,773|
|---|---|---|---|---|
|||||31,773|



A current year 12 months and prior year 12 months combined position is as follows: 

|**Unrestricted funds**<br>General fund<br>**TOTAL FUNDS**|At 1.9.18<br>£<br>401,595<br>401,595|Net<br>movement<br>in funds<br>£<br>43,923<br>43,923|At<br>31.8.20<br>£<br>445,518|
|---|---|---|---|
||||445,518|



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

|**Unrestricted funds**<br>General fund<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>568,523<br>568,523|Resources<br>expended<br>£<br>(520,278)<br>(520,278)|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>(4,322)<br>43,923<br>(4,322)<br>43,923|Gains and<br>Movement<br>losses<br>in funds<br>£<br>£<br>(4,322)<br>43,923<br>(4,322)<br>43,923|
|---|---|---|---|---|
|||||43,923|



## **17. RELATED PARTY DISCLOSURES** 

Remuneration paid to D G Brown is detailed in note 5 of the financial statements. 

Trustees of Pod@Heyhouses CIO hold other trusteeships in other organisations and transactions with these organisations are as follows. 

The charity paid donations of £1,200 to Pod@Heyhouses CIO in the year. The charity granted a loan to Pod@Heyhouses CIO, the amount outstanding at 31/08/2020 was £8,307, (2019:£10,707). 

The charity received a donation of £25,000 in the year from The Lytham Schools Foundation. 

continued... 

Page 18 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31ST AUGUST 2020** 

## **18. CONTROLLING PARTY** 

The charitable company is controlled by the director trustees. 

Page 19 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31ST AUGUST 2020** 

|**DETAILED STATEMENT OF FINANCIAL ACTIVITIES**<br>**for the Year Ended 31ST AUGUST 2020**|||
|---|---|---|
||31/8/20|31/8/19|
||£|£|
|**INCOME AND ENDOWMENTS**|||
|**Donations and legacies**|||
|Donations|25,032|12,431|
|Government grants|20,621|-|
||45,653|12,431|
|**Other trading activities**|||
|Fundraising events|-|18|
|**Investment income**|||
|Deposit account interest|57|671|
|Dividend income|2,114|1,135|
||2,171|1,806|
|**Charitable activities**|||
|Fees receivable|220,364|270,235|
|Sale of uniforms|1,226|1,509|
|Sale of refreshments and lunches|4,831|8,279|
||226,421|280,023|
|**Total incoming resources**|274,245|294,278|
|**EXPENDITURE**|||
|**Other trading activities**|||
|Opening stock|684|1,022|
|Purchases|1,367|1,504|
|Closing stock|(1,069)|(684)|
||982|1,842|
|**Charitable activities**|||
|Trustees' salaries|15,375|14,438|
|Trustees' social security|922|819|
|Trustees' pension contributions|276|205|
|Wages|176,242|163,541|
|Social security|2,214|1,972|
|Pensions|2,135|1,381|
|Rates and water|1,978|2,675|
|Insurance|3,440|2,875|
|Light and heat|2,292|2,611|
|Telephone|1,238|1,266|
|Printing and stationery|1,703|479|
|Carried forward|207,815|192,262|



This page does not form part of the statutory financial statements 

Page 20 



**HEYHOUSES CHURCH OF ENGLAND NURSERY SCHOOL LIMITED** 

## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31ST AUGUST 2020** 

|**DETAILED STATEMENT OF FINANCIAL ACTIVITIES**<br>**for the Year Ended 31ST AUGUST 2020**|||
|---|---|---|
||31/8/20|31/8/19|
||£|£|
|**Charitable activities**|||
|Brought forward|207,815|192,262|
|Sundries|1,113|886|
|Staff recruitment and training|361|1,049|
|Repairs and renewals|5,208|3,229|
|School meals and refreshments|6,273|10,944|
|Travelling expenses|114|246|
|Cleaning costs|1,271|5,596|
|Bank charges|65|352|
|Curriculum development|3,990|3,274|
|Payroll & other accountancy charges|2,298|2,430|
|Legal and professional fees|4,384|3,424|
|Bad debts|(109)|457|
|Computer expenses|950|618|
|Depreciation of premises|13,472|13,473|
|Depreciation of fixtures and fittings|1,874|2,175|
|Depreciation of computer equipment|305|271|
|Loan interest|8,565|14,019|
||257,949|254,705|
|**Support costs**|||
|**Governance costs**|||
|Independent examiners fees|2,400|2,400|
|Total resources expended|261,331|258,947|
|**Net income before gains and losses**|12,914|35,331|
|**Realised recognised gains and losses**|||
|Movement in fair value of investments|(764)|(3,558)|
|**Net income**|12,150|31,773|



This page does not form part of the statutory financial statements 

Page 21