REGISTERED COMPANY NUMBER: 03719730 (England and Wales) REGISTERED CHARITY NUMBER: 1081699
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 March 2021
for
LONGBRIDGE CHILDCARE STRATEGY GROUP
Haines Watts Birmingham LLP 5-6 Greenfield Crescent Edgbaston Birmingham B15 3BE
LONGBRIDGE CHILDCARE STRATEGY GROUP
Contents of the Financial Statements for the year ended 31 March 2021
| Page | |
|---|---|
| Reference and Administrative Details | 1 |
| Report of the Trustees | 2 to 7 |
| Statement of Trustees' Responsibilities | 8 |
| Independent Examiner's Report | 9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 11 |
| Cash Flow Statement | 12 |
| Notes to the Cash Flow Statement | 13 |
| Notes to the Financial Statements | 14 to 19 |
LONGBRIDGE CHILDCARE STRATEGY GROUP
Reference and Administrative Details for the year ended 31 March 2021
Trustees Ms S M Ford (Chair) Mr M J Short Ms S Murray Registered office Hollymoor Centre 8 Manor Park Grove Northfield Birmingham West Midlands B31 5ER Registered company number 03719730 (England and Wales) Registered charity number 1081699 Independent examiner Haines Watts Birmingham LLP 5-6 Greenfield Crescent Edgbaston Birmingham B15 3BE
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Report of the Trustees for the year ended 31 March 2021
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 31 March 2021. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
Structure, governance and management
Longbridge Childcare Strategy Group is a company limited by guarantee (company number 03719370) which was incorporated on 25 February 1999 and achieved charitable status on 21 July 2000 (number 1081699). It is governed by its Memorandum and Articles of Association dated 25 February 1999, as amended by special resolution on 13 December 1999.
The Trustees who held office during the year and to the date of this report are as follows:
| Ms C Aberdeen | Resigned 2 December 2021 |
|---|---|
| Ms L Bishop | Resigned 2 December 2021 |
| Ms S M Ford | Appointed 27 October 2016 |
| Mr M Melough | Resigned 2 December 2021 |
| Mr M J Short | Appointed 2 December 2021 |
| Ms S Murray | Appointed 2 December 2021 |
Recruitment and appointment of new Trustees
The current Trustees continued in their same positions as in the previous year and played an active part in the organisation and management of the group. No new Trustees have been appointed during this year as the Trustees continued to focus their energy on reviewing and stabilising the group’s activities and services. However, some of the Trustees have served the maximum term of office and, in accordance with the charity’s guidance, will need to step down during the coming year. Historically it has been difficult to identify parents or other individuals who have been willing to commit the necessary time to the organisation. The Trustees and Project Managers will now prioritise this area of work and begin advertising for new Trustees. The process of appointment will be via interview and subject to committing to a minimum of four meetings per year and completion of a DBS check.
Objectives and activities
Principal activity
The principal activity of the company - the provision of quality, affordable childcare facilities and training for those supplying care services – remained the prime focus, with the welfare and development of the children being paramount within all our activities. However, the timeframe of April 2020 to March 2021 encompasses one of the most challenging times in not only our personal lives and activities but also on a worldwide basis. Just as we finished the previous financial year, we began the process of prioritising places for keyworkers children and furloughing several our staff. For the rest of the year, we spent many hours making, and changing, plans to ensure we could provide the best service and ensure the continued development of the children (both those remaining in nursery and those who were isolating at home with their families).
Longbridge Childcare Strategy Group is a charity established in 1991, to be effective in Birmingham with particular reference to the Longbridge Area and its environs (the Area of Benefit).
"To advance the education and development of young children within Longbridge in particular by the provision of a comprehensive childcare service offering facilities for safe and satisfying play and to provide or to arrange for the provision of such ancillary facilities and activities which are considered necessary or desirable for the fulfilment of the objects."
The Charity includes the following powers exercisable in furtherance of the said Objects, but not otherwise;
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To advance, whether by training or otherwise, the knowledge and professional skills of those resident in the Area of Benefit and concerned with the provision of childcare. 2. To provide practical help within the Centre services, including; advice, assistance, service, support, advocacy and information to meet the needs of those caring for children and to liaise with external bodies concerned with the matters of childcare.
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To promote, provide and carry on or assist in the promotion, provision and carrying on of facilities of any kind pursuant to the objects and to arrange and hold meetings, conferences and lectures.
The charity’s aims and objectives remained the same throughout the year but the services that were offered and delivered were even more important. All services remained open for almost the whole of the year – providing childcare for the children of keyworkers and the most vulnerable children. For families who were not able to attend the groups contact was maintained via telephone, email etc.
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Report of the Trustees for the year ended 31 March 2021
Objectives and activities (continued)
One of our first challenges was to identify those of our staff who were classified as ‘extremely vulnerable’ to be placed on furlough. This was followed by redistributing the staff remaining across the three sites. The resilience and fortitude of the staff was instrumental in the continued services – two of our managers were in the ‘extremely vulnerable’ category and therefore we had to utilise Deputy Managers as Nursery Leaders.
For a period of time during Summer 2020 we furloughed all staff (apart from the Finance Manager) who wasn’t directly involved in providing childcare services. The opportunity to furlough staff ensured that there was financial support which enabled the charity as a whole to continue. Because childcare services were also expected to remain open there was also some support available in various forms from the Local Authority.
Activities April 2020-March 2021
At this point in the Annual Report, we usually detail the individual group activities, however this seems a little inappropriate for this year’s document.
Throughout the year LCSG maintained the continued operation of most of its services, but not always on a continual basis and not always with the same children/families attending. The nurseries and Out-of-school services when open offered places to children who were on our registers and also to children who attended other provision which had closed due to the pandemic. The groups covered the age-ranges as normal, but management and organisation of activities was adapted as necessary on a daily basis.
The primary responsibility of ensuring the wellbeing and development of the children now included health & safety far more intensely than ever before. Although it has always been a core part of services ‘covid-safe’ meant that it was top priority. Risk Assessments have been produced throughout the last year, ensuring that every new set of guidelines were read, understood and implemented. It is interesting to note that children now sneeze into their armpits (no longer into their hand as in previous generations), handwashing/sanitising is done automatically, and the use of tissues has increased dramatically!
For the nursery and families there were other aspects that continue to change the way they work. Parents were unable to enter the nursery with their children – leaving and collecting them at the door. This happened even for children who were attending from closed nurseries and had never been there before. There were limited opportunities for consultations with parents, or with other professionals. Throughout all of these difficulties the staff team worked diligently and enthusiastically to ensure that the children had the best of experiences in the worst of times. They also provided an ear for parents who needed extra support.
By April 2021 things were more positive, with services more or less back to normal and most of the staff back from Furlough – even if it was only part-time. We were able to plan for summer activities and the new Academic Year. The signs were good, with numbers of children attending growing steadily.
Throughout the year LCSG continued to operate the following groups:
Alphabets @ Holly Hill Nursery continues to operate in the main nursery building and within the Children Centre. It offers full and part-time childcare places for children aged 2-4 years only. At the present time there is insufficient interest in places for children under two – most of the families in this area are not working and do not require childcare. The After- school club now has its own space in the space previously occupied by the one-two year olds. The nursery continues to work closely with Frankley Plus Children’s Centre and to provide a stable and secure environment for the children and families in the area.
Alphabets @ Cofton - This nursery is established in the local area with numbers increasing. The Before & After school and Holiday Playscheme services continued to be popular with children and families attending the adjoining primary school.
Alphabets @ Hollymoor - The nursery continued to offer places for children from one to four years throughout the year. It supports children and families in the local area with a number of places taken by vulnerable children as well as for working parents. Throughout covid they provided support for many children and families, particularly for the one-two year olds. Working in partnership with other childcare professionals and the local children’s centre has been challenging throughout the year due to many of the professionals working from home. One of the most difficult aspects has been the need to use electronic devices and social media/Wi-Fi. As a charity we have found it difficult to maintain the quantity and quality of these systems. We have identified this as a priority for the coming year.
Alphabet Movers Stay & Play Group , this group closed at the beginning of the year due to covid restrictions and, due to it being a ‘social’ group for individual families to meet, has remained closed throughout the year. The future of this group will be decided at a future date.
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Report of the Trustees for the year ended 31 March 2021
Objectives and activities (continued)
Central Office - The office at Hollymoor Centre was closed during covid at the beginning of the year. There were no public groups accessing the building and therefore any administrative work was completed by home working. Negotiations regarding the Lease for the building also ceased during this period and will now become a priority for the next year. The condition of the building remains stable, LCSG has continued to complete emergency repairs to the roof etc.
Management
The volunteer Trustees continued to work with senior staff (particularly the Finance Officer) throughout the year. The priority has been to maintain the services needed and to manage the budget and financial activities. PAYE has been very different due to the increased work managing furlough hours, pay etc. The legal documentation to go to staff for these activities necessitated the Trustees to be active in the administration of the charity.
The planning priorities from last year's report were to;
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To maintain our existing childcare services to the local communities and specific sectors who have a need for these services
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To be able to maintain the ‘Good’ quality of childcare services
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To research local provision and work with the LA to identify gaps and provide services which may be needed
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To market LCSG services widely across the local areas
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To monitor Running Costs and Funding/Income opportunities to maintain sustainability
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To work with the LA to establish the future use of Hollymoor Centre
These came with the recognition that we had entered a time of major uncertainties and that within this framework we needed to try to identify priorities for future development although sustainability may have been the biggest concern.
This Report has shown that despite working throughout the pandemic LCSG did maintain quality services and supported children and families. We also worked in partnership with other organisations and the Local Authority. The organisation continues to move forward optimistically with plans for future growth and development.
Public benefit statement
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit'.
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Report of the Trustees for the year ended 31 March 2021
Objectives and activities (continued)
Social impact report April 2020 - March 2021
There are no official figures for this Report as the nature of the work throughout this year has been very much focused on the practical activities and individual needs. The data previously used was not provided from April 2020 – December 2020. Due to the variables in Keyworker and vulnerable Children accessing different providers within the area in response to COVID-19. It is hoped that there will be time for reflection, analysis and evaluation during the next year.
LCSG have given extra social support to over 300 families. The support has been through the receipt and implementation of Pupil Premium and or Deprivation funding, which has included providing extra services tailored to meet the needs of the children. The services have included a language and communication tool called Wellcomm. Wellcomm is used to assess all the children and then plan to support identified speech language and communication needs. In addition to our usual services 105 children were supported during the summer holidays in the Holiday Activities and Fun scheme funded by a grant managed by Birmingham City Council. Through this scheme we engaged with children who may have experienced holiday hunger, inactivity, isolation and learning loss, throughout the holiday period.
The Holiday Activities and Fun scheme required a different kind of workforce. Supported by the Early Years Practitioners a new team of Playworkers where employed. This resulted in the development of a team of seven young adults aged between 16 to 18 years old who were very enthusiastic and committed to providing a summer scheme full of fun and friendship for the young children in their care. These young people gained valuable work experience made new friends and had a valuable experience of employment and managing their own money.
The group has invested in training the key people to Increase their knowledge and skills. This is to provide the socially supported families with the highest quality of care. The team have attended training in speech and language, nutrition, first aid, food safety and workshops connected to the implementation of the new Early Years Foundation Stage.
Safeguarding and promoting the welfare of children remains to be an integral factor in all LCSG’s management procedures. Safeguarding cannot be separated from the general ethos of the group who aim to continue to create a culture of vigilance and care. The number of qualified Designated Safeguarding Leads has increased to give the team the skills and confidence to act appropriately and with confidence when they need to. The groups induction pack has also been revised to strengthen a new employee’s knowledge of what is expected from them as a member of the team.
The new intricate way of working with families in the local community, only strengthened the support we were able to give, and we found that we were able to access a larger number of families who would have been harder to reach out to. By bringing them into our community we can work in partnership with other professionals and services to make a real change to their lives. An example of some of the professionals we work with are Health Visitors, Social Workers, Police, Health Care Professionals, teachers, and housing organisations. We also work in partnership with the Children’s Centres, Special Educational Needs co-ordinators and Speech and Language Therapists. In addition, we support parents back into training by providing flexible childcare packages in partnership with the colleges.
A high percentage of our children are families who are living in poverty with either no employed income or exceptionally low pay. The group has worked hard to insure the children receive good nutritional snacks and meals. During the Holiday Activities and Fun programme, we provided hot meals to children who normally receive free school meals.
Covid has impacted on the lives of all our children their families and the LCSG team. Every person has experienced times of uncertainty and anxiety on what the future may bring and at times a loss of control over personal choices. As a group we have tried to reduce these problems by keeping regular contact with people. The children in isolation have been supported by phone calls from the nursery, with practical help and advice shared with the parents/carers, who at times just needed somebody to talk to. Throughout the pandemic the childcare continued at each of the venues for key workers and vulnerable children. Some vulnerable members of the team were forced into isolation which caused them feelings of helplessness. The team members were supported thorough phone calls, information emails and Zoom meetings with the chair and senior management who offered help advice and support. The meetings were sometimes with individuals but also team meetings to help people still feel attached to the group and to plan and collaborate with their colleagues. The people who did come into work with the children attended a Covid meeting where the risk assessments and action plans were discussed which helped to develop the groups Covid policies and procedures. These continue to be updated as required.
The members of the group have all continued to adhere to government guidelines but share this responsibility as a team. The care and wellbeing of individuals remains a priority as we try to survive the impact Covid is having.
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Report of the Trustees for the year ended 31 March 2021
Financial review
Financial position
The review of the year to 31 March 2021 has again, as in the previous year, been somewhat overtaken by the events that the whole world is still facing. With all the uncertain times we have faced during this financial year, whilst trying to stick to the operational plan of extending the daily and weekly hours of the settings, we utilised as much as we could - using the Job Retention Scheme and additional support from the Local Restrictions and Support Grants that were available to us. It seemed that as we came into September things were starting to normalise, however parents were still uneasy to send children back into our care – this in turn led to a downfall in numbers for the first term. We were again financially supported to some degree as Local Authority payments were made on the previous year numbers.
This gave us a cushion to continue operations, but Covid-19 safe working guidelines meant that the way we had to operate changed - we had to work in ‘bubbles’ which increased our staffing costs. We were able to support families and children in the local area who were unable to attend the nurseries via Zoom and telephone communications. In order to do this, we had to invest in up to date I.T. equipment.
A new national lockdown began in January 2021, and we again made the decision to remain open to support the children and families. However, what we had been battling for over 12 months started to do its rounds; A new variant emerged and 15 of our staff were confirmed Covid-Positive within the month of January – we could no longer operate and closed for two weeks enabling staff to recover and to keep everyone safe.
During this time, we looked at ways we could save money in other areas and managed to secure several cheaper deals regarding our operating expenses. We had an overhaul of holiday entitlements for new staff and took advantage of the Flexible Furlough Scheme for the central staff team. We contacted local organisations for support and ASDA gave us a donation of nappies plus a grant to support the children and families of Longbridge. We received an Emergency Relief Grant for the after-school children at Alphabets @ Cofton which was where we were seeing the most downfall in fees being paid.
We continued into Spring when we were able to access the Government Apprenticeship and Kickstart Schemes to attract new employees. At the AGM in March 2021 a 2.2% wage rise was agreed. The April 2021 Funding Rates were released late into April and were much lower than anticipated. This, along with the rise in National Minimum Wage, was a cause for concern. However, we looked for new opportunities and managed to increase tenants within the centre. Following a successful 2019 HAF Programme we applied for funding for Summer 2021 which would generate an income of 21k. Knowing our weakest point is August, we have the confidence that this will continue to operate and increase in the years to come.
The Hollymoor site was also used as a Lateral flow test pick-up site, generating more footfall to the area and subsequently more recognition in the area. This has resulted in a growth in service requests. From April almost all our staff were employed full time. The nursery numbers are showing a record high with EEE payments surpassing the last 5 years in the first term. Paying parents rose with Alphabets @ Hollymoor showing an exceptional uptake, with the lower age group being almost at capacity. These children will remain on the books for longer giving us confidence for the future and ratifies the decision that was made to lower the age range pre covid.
Although salaries have increased by almost 25k on the previous year we have new continuous tenants in the building who are working in partnership with LCSG to increase events for the local community. We have had some setbacks with the disrepair of the building and have spent just under 10k on roofing, heating, and the fire alarm system – we are budgeting for this, and other repairs needed in the next financial year. The only other concern we have is the rise in Utility costs when our contract ends in Jan 2022, we are however researching this on a continual basis.
Reserves policy
Given the current net liabilities position, the reserves policy of the charity is under review. The short term priority is to eliminate the net liabilities. In the medium term, the Trustees intend to agree a policy for maintaining unrestricted funds which will balance the group's day to day cash flow needs, while allowing for suitable investment in staff and resources which will benefit the Group in the longer term.
Funds in deficit
The financial statements show a deficit in total funds of £48,929 as at 31 March 2021 (2020 – deficit of £89,618).
Going concern
The Trustees have considered a period of at least 12 months from the date of approval of these financial statements and consider that the charity will be able to continue to attract sufficient funding and manage its expenditure levels accordingly. The group is showing a high uptake for childcare places, which will continue to rise and for these children to stay longer than a period of 12 months. The Group has access to a £10,000 overdraft facility that was renewed in December 2021 for a further 12 months. As such, the Trustees are content that the accounts can be prepared on the going concern basis.
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Report of the Trustees for the year ended 31 March 2021
Risk management
The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the Board of Trustees on 27 January 2022 and signed on its behalf by:
Ms S M Ford Chair of Trustees
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Statement of Trustees' Responsibilities for the year ended 31 March 2021
The Trustees (who are also the directors of Longbridge Childcare Strategy Group for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Independent Examiner's Report to the Trustees of Longbridge Childcare Strategy Group
Independent examiner's report to the Trustees of Longbridge Childcare Strategy Group ('the Company')
I report to the Charity Trustees on my examination of the accounts of the Company for the year ended 31 March 2021.
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 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:
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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
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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
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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.
Kevin Hodgetts FCA Institute of Chartered Accountants in England and Wales Haines Watts Birmingham LLP 5-6 Greenfield Crescent Edgbaston Birmingham B15 3BE
28 January 2022
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LONGBRIDGE CHILDCARE STRATEGY GROUP
| Income and endowments from Donations and legacies Charitable activities - Childcare services - Government grants Total Expenditure on Charitable activities - Childcare services Other activities Total NET INCOME/(EXPENDITURE) Reconciliation of funds Total funds brought forward Total funds carried forward |
Statement of Financial Activities for the year ended 31 March 2021 Unrestricted Restricted funds funds Notes £ £ 2 28 - 3 384,594 - 3 114,789 - 499,411 - 4 458,722 - - - 458,722 - 40,689 - (91,203) 1,585 (50,514) 1,585 |
2021 Total funds £ 28 384,594 114,789 499,411 458,722 - 458,722 40,689 (89,618) (48,929) |
2020 Total funds £ 35 431,740 - 431,775 465,540 81 465,621 (33,846) (55,772) (89,618) |
|---|---|---|---|
Continuing operations
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
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LONGBRIDGE CHILDCARE STRATEGY GROUP
| Balance Sheet 31 March 2021 Unrestricted Restricted funds funds Notes £ £ Fixed assets Tangible assets 9 4,900 - Current assets Debtors 10 8,911 - Cash at bank and in hand 46,444 1,585 55,355 1,585 Creditors Amounts falling due within one year 11 (110,769) - Net current assets/(liabilities) (55,414) 1,585 Total assets less current liabilities (50,514) 1,585 NET ASSETS/(LIABILITIES) (50,514) 1,585 Funds 13 Unrestricted funds Restricted funds Total funds |
2021 Total funds £ 4,900 8,911 48,029 56,940 (110,769) (53,829) (48,929) (48,929) (50,514) 1,585 (48,929) |
2020 Total funds £ 4,999 10,159 1,687 11,846 (106,463) (94,617) (89,618) (89,618) (91,203) 1,585 (89,618) |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.
The Trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(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.
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 27 January 2022 and were signed on its behalf by:
Ms S M Ford
Chair of Trustees
The notes form part of these financial statements
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LONGBRIDGE CHILDCARE STRATEGY GROUP
| Cash Flow Statement for the year ended 31 March 2021 2021 Notes £ Cash flows from operating activities Cash generated from operations 1 47,452 Interest paid - Interest element of hire purchase or finance lease rental payments paid - Net cash provided by operating activities 47,452 Cash flows from investing activities Purchase of tangible fixed assets (1,110) Net cash used in investing activities (1,110) Cash flows from financing activities Loan repayments in year - Capital repayments in year - Net cash provided by/(used in) financing activities - Change in cash and cash equivalents in the reporting period 46,342 Cash and cash equivalents at the beginning of the reporting period 1,687 Cash and cash equivalents at the end of the reporting period 48,029 |
2020 £ 6,253 (1,904) (677) 3,672 (590) (590) (14,046) (1,541) (15,587) (12,505) 14,192 1,687 |
|---|---|
The notes form part of these financial statements
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Notes to the Cash Flow Statement for the year ended 31 March 2021
1. Reconciliation of net income/(expenditure) to net cash flow from operating activities
| Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Interest paid Interest element of hire purchase and finance lease rental payments Decrease in debtors Increase in creditors Net cash provided by operations |
2021 £ 40,689 1,209 - - 1,248 4,306 47,452 |
2020 £ (33,846) 3,766 1,904 677 1,676 32,076 6,253 |
|---|---|---|
2.
Analysis of changes in net (debt)/funds
| At 1/4/20 | Cash flow | At 31/3/21 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank and in hand | 1,687 | 46,342 | 48,029 |
| 1,687 | 46,342 | 48,029 | |
| Debt | |||
| Debts falling due within 1 year | (10,216) | 10,216 | - |
| (10,216) | 10,216 | - | |
| Total | (8,529) | 56,558 | 48,029 |
The notes form part of these financial statements
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Notes to the Financial Statements for the year ended 31 March 2021
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 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Charities Act 2011 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Going concern
The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the academy trust to continue as a going concern. The Trustees make this assessment in respect of a period of one year from the date of authorisation for issue of the financial statements.
The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Trustees have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.
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.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Charitable activities
Costs of charitable activities are incurred on the charity's childcare operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
Tangible fixed assets
All fixed assets are initially recognised at cost.
Depreciation
Depreciation of fixed assets is calculated to write off their cost of valuation less any residual value over their estimated useful lives as follows:
Improvements to leasehold property - 20% p.a. straight line basis Office equipment - 15% p.a. reducing balance Fixture and fittings - 25% p.a. reducing balance Computer equipment - 25% p.a. reducing balance
Taxation
The charity is exempt from corporation tax on its charitable activities.
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 charity and which have not been designated for other purposes.
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Notes to the Financial Statements - continued for the year ended 31 March 2021
1. Accounting policies - continued
Fund accounting
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purpose. The cost 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.
Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.
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.
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
2. Donations and legacies
Grants Received
| Unrestricted funds Restricted funds Bournville College Total |
2021 £ - - £ 28 28 28 |
2020 £ - |
|---|---|---|
| - | ||
| £ 35 |
||
| 35 | ||
| 35 |
| 3. Charitable activities Childcare services Fundraising events Centre income Nursery fees - government funded Government support grants |
2021 £ - 26,104 358,490 114,789 499,383 |
2020 £ 826 36,930 393,984 - |
|---|---|---|
| 431,740 |
The charity has been eligible to claim additional funding in the year from government support schemes in response to the coronavirus outbreak. The funding received totalling £34,294 has been shown in government grants. Also included in government grants is an amount totalling £79,995 received under the Government’s Coronavirus Job Retention Scheme.
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Notes to the Financial Statements - continued for the year ended 31 March 2021
4. Resources expended
| Wages and national insurance Accountancy and independent examination Bank and professional charges Professional fees Consumables and staff expenses Insurance Depreciation Finance lease costs Loan interest Pensions Rent, rates, heat and light Repairs, research and maintenance Telephone, stationery and advertising Trustee's expenses |
2021 £ Unrestricted funds 362,555 2,700 383 1,555 19,204 6,503 1,209 - - 5,200 37,910 11,925 9,578 - 458,722 |
Restricted funds - |
2020 £ Unrestricted fund 344,016 2,700 714 - 21,418 9,830 3,731 677 1,854 4,920 56,660 10,038 8,947 81 465,586 |
Restricted fund 35 35 |
|---|---|---|---|---|
5. Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Independent examiners' fees | 2,700 | 2,700 |
| Depreciation - owned assets | 1,209 | 1,231 |
| Depreciation - assets on hire purchase contracts and finance leases | - | 2,535 |
6. Trustees' remuneration and benefits
There were no Trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.
Trustees' expenses
There were no Trustees expenses paid in the year (2020: £82).
7. Staff costs
| Wages and salaries Other pension costs The average monthly number of employees during the year was as follows: Administrative staff |
2021 £ 362,555 5,200 367,755 2021 23 |
2020 £ 344,074 4,920 |
|---|---|---|
| 348,994 | ||
| 2020 23 |
No employees received emoluments in excess of £60,000.
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Notes to the Financial Statements - continued for the year ended 31 March 2021
8. Comparatives for the statement of financial activities - year ended 31 March 2020
| Unrestricted Restricted funds funds £ £ Income and endowments from Donations and legacies - 35 Charitable activities - Childcare services 430,155 1,585 Total 430,155 1,620 Expenditure on Charitable activities - Childcare services 465,505 35 Other activities 81 - Total 465,586 35 NET INCOME/(EXPENDITURE) (35,431) 1,585 Reconciliation of funds Total funds brought forward (55,772) - Total funds carried forward (91,203) 1,585 9. Tangible fixed assets Fixtures Improvements Plant and and Computer to property machinery fittings equipment £ £ £ £ Cost At 1 April 2020 103,894 19,774 57,132 15,905 Additions - 410 - 700 At 31 March 2021 103,894 20,184 57,132 16,605 Depreciation At 1 April 2020 103,894 17,000 56,709 14,103 Charge for year - 478 106 625 At 31 March 2021 103,894 17,478 56,815 14,728 Net book value At 31 March 2021 - 2,706 317 1,877 At 31 March 2020 - 2,774 423 1,802 |
Total funds £ 35 431,740 431,775 465,540 81 465,621 (33,846) (55,772) (89,618) Totals £ 196,705 1,110 197,815 191,706 1,209 192,915 4,900 4,999 |
|---|---|
The net book value of tangible fixed assets includes £Nil (2020 - £NIL) in respect of assets held under hire purchase contracts. The depreciation charged to the financial statements in the year in respect of such assets amounted to £NIL (2020 - £2,535).
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Notes to the Financial Statements - continued for the year ended 31 March 2021
10. Debtors: amounts falling due within one year
| 10. | Debtors: amounts falling due within one year | |||
|---|---|---|---|---|
| 2021 | 2020 | |||
| £ | £ | |||
| Trade debtors | 8,911 | 9,398 | ||
| Prepayments and accrued income | - | 761 | ||
| 8,911 | 10,159 | |||
| 11. | Creditors: amounts falling due within one year | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Other loans (see note 12) | - | 10,216 | ||
| Trade creditors | 3,848 | 2,655 | ||
| Social security and other taxes | 54,072 | 39,849 | ||
| Other creditors | 10,239 | 10,302 | ||
| Deferred income | 170 | 198 | ||
| Accrued expenses | 42,440 | 43,243 | ||
| 110,769 | 106,463 | |||
| 12. | Loans | |||
| An analysis of the maturity of loans is given below: | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Amounts falling due within one year on demand: | ||||
| Other loans | - | 10,216 | ||
| 13. | Movement in funds | |||
| Net | ||||
| movement | ||||
| At 1/4/20 | in funds | At 31/3/21 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | (91,203) | 40,689 | (50,514) | |
| Restricted funds | ||||
| Restricted general fund | 1,585 | - | 1,585 | |
| TOTAL FUNDS | (89,618) | 40,689 | (48,929) | |
| Net movement in funds, included in the above are as follows: | ||||
| Incoming | Resources | Movement | ||
| resources | expended | in funds | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 499,411 | (458,722) | 40,689 | |
| TOTAL FUNDS | 499,411 | (458,722) | 40,689 |
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LONGBRIDGE CHILDCARE STRATEGY GROUP
Notes to the Financial Statements - continued for the year ended 31 March 2021
13. Movement in funds - continued
Comparatives for movement in funds
| Net movement At 1/4/19 in funds At £ £ Unrestricted funds General fund (55,772) (35,431) Restricted funds Restricted general fund - 1,585 TOTAL FUNDS (55,772) (33,846) |
31/3/20 £ (91,203) 1,585 (89,618) |
|---|---|
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 430,155 | (465,586) | (35,431) |
| Restricted funds | |||
| Restricted general fund | 1,620 | (35) | 1,585 |
| TOTAL FUNDS | 431,775 | (465,621) | (33,846) |
14. Related party disclosures
During the year ended 31 March 2018 the Trustees loaned £9,000 to the company, this remains within other creditors as at 31 March 2021.
There were no Trustee's expenses paid in the year (shown in note 6) and no other related party transactions occurred for the year ended 31 March 2021.
Key management personnel consists of the Trustees only, whose remuneration is shown within note 6.
15. Ultimate controlling party
The charity was under the control of the Board of Trustees in the current and previous year.
16. Share capital
The company is limited by guarantee of its members and does not have any share capital. In the event the company is wound up, the members who are also the Trustees, have a liability in respect of the guarantee, limited to £1 per member.
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