**Charity Registration No. 1083392**
**Company Registration No. 03942879 (England and Wales)**
## **C.M.A. COMMUNITY NURSERY LTD**
# **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 5 APRIL 2021**
## **C.M.A. COMMUNITY NURSERY LTD**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mr I Feldman Mrs B Ovitz Mr E Gottesfeld **Charity number** 1083392 **Company number** 03942879 **Registered office** 32 Castlewood Road London N16 6DW **Auditor** Glazers 843 Finchley Road NW11 8NA **Bankers** Lloyds Bank Plc Highbury Corner BX1 1LT
## **C.M.A. COMMUNITY NURSERY LTD**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Statement of trustees' responsibilities|3|
|Independent auditor's report|4 - 6|
|Statement of financial activities|7|
|Balance sheet|8 - 9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 19|
## **C.M.A. COMMUNITY NURSERY LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
The trustees present their annual report and financial statements for the year ended 5 April 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016)
## **Objectives and activities**
The charity was established to further the education of children in accordance with the tenets of the orthodox Jewish faith, and does this primarily through operating a pre school which is partly funded by the local authority and a primary school to provide Jewish religious education and education generally for ages 3 years and upwards .
The school ensures that even those in difficult financial situations are able to send their children to school. To achieve this reductions in parental contributions are offered where required, and in certain instances contributions are waived all together.
The trustees confirm their compliance with the duty to have due regard to the public benefit guidance published by the Charity Commission when reviewing the charity's aims and objectives and in planning future activities.
Grants on the unrestricted fund are made at the trustees' discretion from their knowledge of the various institutions, subject to the grants being both charitable and in accordance with the charity's objects.
## **Achievements and performance**
## **Charitable activities**
The charity continued to provide education for children aged 3 and upwards in purpose built premises and provided grants to institutions to promote the advancement of orthodox Jewish religious education.
In the year under review the charity generated income of £ 1,651,297 (20 20 : £ 1,631,729 ) and incurred expenses of £1,577,825 (2020: £1,696,795) resulting in net incoming resources of £73,472 .
## **Financial review**
The trustees are satisfied with the financial results for the year under review, which are set out in the attached Financial Statements together with the notes thereon.
It is the policy of the charity to maintain the charity's free reserve s , at a level, which the trustees think appropriate after considering future commitments and the day to day running costs of the school. The amount on the Unrestricted fund at the year end was £412,042 which included free reserves of £142,335.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity plans to continue to support the school and fund its activities for the foreseeable future subject to satisfactory income.
## **Structure, governance and management**
The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association .
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr I Feldman
Mrs B Ovitz Mr E Gottesfeld
- 1 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
The power to appoint new trustees is vested in the current board. It is not the intention of the trustees of the charity to appoint any new trustees. Should the situation change in the future, the trustees will apply suitable recruitment induction and training procedures.
The nursery and school has a full time administrator and a Head of Unit. It has full-time and part-time staff as well as a domestic general assistant. All are answerable to the Trustees.
The nursery and school are subject to inspection by the Local Authority and Ofsted .
## **Disclosure of information to auditor**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' r eport was approved by the Board of Trustees.
..............................
## **Mr E Gottesfeld**
Trustee Dated: .........................
- 2 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 5 APRIL 2021**_
The trustees, who are also the directors of C.M.A. Community Nursery Ltd for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 3 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF C.M.A. COMMUNITY NURSERY LTD**
## **Opinion**
We have audited the financial statements of C.M.A. Community Nursery Ltd (the ‘charity’) for the year ended 5 April 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 5 April 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
- 4 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF C.M.A. COMMUNITY NURSERY LTD**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
- 1) Enquiries of management concerning the charity's policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
2) Discussions among the engagement team regarding how and when fraud might occur in the financial statements and any potential indicators of fraud.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
- 5 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF C.M.A. COMMUNITY NURSERY LTD**
We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and the Charities Act 2011 .
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity's ability to operate or avoid a material penalty.
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.
In addition to the above, our procedures to respond to risks identified included the following:
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- Enquiring of management concerning actual and potential litigation and claims;
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- Reading minutes of meetings of those charged with governance.
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Trustees and other management are responsible for such internal control as the Trustees and other management of the Charity determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matter**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
......................... **Glazers Chartered Accountants** 843 Finchley Road **Statutory Auditor** London NW11 8NA
Glazers is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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## **C.M.A. COMMUNITY NURSERY LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 5 APRIL 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
1,551,174
76,729
Investments
**4**
23,394
-
**Total income**
1,574,568
76,729
**Expenditure on:**
Charitable activities
**5**
1,494,485
83,340
**Net incoming/(outgoing)**
**resources**
80,083
(6,611)
**Other recognised gains and losses**
Revaluation of tangible
fixed assets
62,500
-
**Net movement in funds**
142,583
(6,611)
Fund balances at 6 April 2020
269,459
6,611
**Fund balances at 5 April**
**2021**
412,042
-|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
1,627,903
1,529,893
80,555
23,394
21,281
-
1,651,297
1,551,174
80,555
1,577,825
1,622,851
73,944
73,472
(71,677)
6,611
62,500
-
-
135,972
(71,677)
6,611
276,070
341,136
-
412,042
269,459
6,611|**Total**
**2020**
**£**
1,610,448
21,281
1,631,729
1,696,795
(65,066)
-
(65,066)
341,136
276,070|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **C.M.A. COMMUNITY NURSERY LTD**
## **BALANCE SHEET**
## _**AS AT 5 APRIL 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
Investment properties
**13**
**Current assets**
Debtors
**14**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**16**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
Unrestricted funds
General unrestricted funds
Revaluation reserve|**2021**
**£**
79,000
73,057
152,057
(9,722)
269,542
142,500|**£**
7,207
262,500
269,707
142,335
412,042
-
412,042
412,042|**2020**
**£**
79,000
58,074
137,074
(61,004)
189,459
80,000|**£**
-
200,000
200,000
76,070
276,070
6,611
269,459
276,070|
|---|---|---|---|---|
- 8 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **BALANCE SHEET (CONTINUED)**
## _**AS AT 5 APRIL 2021**_
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 5 April 2021, although an audit has been carried out under section 144 of the Charities Act 2011.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on .........................
..............................
Mr E Gottesfeld **Trustee**
## **Company Registration No. 03942879**
- 9 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 5 APRIL 2021**_
|**Notes**
**Cash flows from operating activities**
Cash generated from/(absorbed by)
operations
**18**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**
**Relating to:**
Cash at bank and in hand
Bank overdrafts included in creditors
payable within one year|**2021**
**£**
(9,610)
23,394|**£**
698
13,784
-
14,482
58,074
72,556
73,057
(501)|**2020**
**£**
**£**
(30,343)
-
21,281
21,281
-
(9,062)
67,136
58,074
58,074
-|
|---|---|---|---|
- 10 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **1 Accounting policies**
## **Charity information**
C.M.A. Community Nursery Ltd is a public benefit entity and a private company limited by guarantee incorporated in England and Wales. The registered office is 32 Castlewood Road, London, N16 6DW.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity will continue for the foreseeable future based upon the continued financial support from the community . Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 11 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
E xpenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
All costs are a l located to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% Straight line method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
## **1.7 Investment properties**
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
No depreciation is provided in respect of investment properties applying the fair value model.
## **1.8 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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## **C.M.A. COMMUNITY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **1 Accounting policies**
## **(Continued)**
## **1.10 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.11 Taxation**
The charity is not liable to current tax on its income as it falls within the various exemptions available to registered charities,
## **1.12 Employee benefits**
- The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.13 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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## **C.M.A. COMMUNITY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Judgements made by the directors in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are as follows.
## Property valuation
The valuation of the charity's investment property is subject to a degree of uncertainty, as the value depends on various factors including the nature of the property, its location and expected future net rental values, market yields and comparable market transactions, and particularly due to the currently unknown effects of Brexit and Covid-19, and is made on the basis of assumptions which may not prove to be accurate.
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
242,394
-
Local & Government
Grants
453,961
76,329
Parental Contributions
854,819
400
1,551,174
76,729|**Total**Unrestricted
funds
**2021**
2020
**£**
£
242,394
251,525
530,290
401,368
855,219
877,000
1,627,903
1,529,893|Restricted
funds
2020
£
-
80,555
-
80,555|Total
2020
£
251,525
481,923
877,000
1,610,448|
|---|---|---|---|
Included in government grants is £130,946 received under the Coronavirus Job Retention Scheme.
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## **C.M.A. COMMUNITY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **4 Investments**
|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2021**|2020|
|||**£**|£|
||Rental income|23,394|21,281|
|**5**|**Charitable activities**|||
|||**Teaching &**|**Teaching &**|
|||**Care of**|**Care of**|
|||**Children**|**Children**|
|||**2021**|**2020**|
|||**£**|**£**|
||Staff costs|576,594|568,537|
||Depreciation and impairment|2,403|-|
||Charitable expenditure|577,592|530,188|
|||1,156,589|1,098,725|
||Grant funding of activities (see note 7)|397,936|576,256|
||Share of support costs (see note 8)|11,395|9,033|
||Share of governance costs (see note 8)|11,905|12,781|
|||1,577,825|1,696,795|
||**Analysis by fund**|||
||Unrestricted funds|1,494,485|1,622,851|
||Restricted funds|83,340|73,944|
|||1,577,825|1,696,795|
||**For the year ended 5 April 2020**|||
||Unrestricted funds|1,622,851||
||Restricted funds|73,944||
|||1,696,795||
- 15 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **7 Grants payable**
|Grants to institutions:
CMZ Limited
Friends Of Beis Soroh Schneirer
Friends of Beis Chinuch Lebonos Trust
One Heart Lev Echod
Other|**2021**
**£**
75,000
77,500
73,500
82,000
89,936
397,936|
|---|---|
-
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**2021**
**£**
**£**
**£**
Office Costs
11,395
-
11,395
Audit fees
-
1,240
1,240
Accountancy
-
6,240
6,240
Legal and professional
-
75
75
Bank charges
-
4,350
4,350
11,395
11,905
23,300
Analysed between
Charitable activities
11,395
11,905
23,300
**9**
**Net movement in funds**
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's
financial statements
Depreciation of owned tangible fixed assets|Support
costs
Governance
costs
£
£
9,033
-
-
1,200
-
5,760
-
1,835
-
3,986
9,033
12,781
9,033
12,781
**2021**
**£**
1,240
2,403|2020
£
9,033
1,200
5,760
1,835
3,986
21,814
21,814
**2020**
**£**
1,200
-|
|---|---|---|
## **10 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
- 16 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **11 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
Other pension costs
**12**
**Tangible fixed assets**
**Cost**
At 6 April 2020
Additions
At 5 April 2021
**Depreciation and impairment**
At 6 April 2020
Depreciation charged in the year
At 5 April 2021
**Carrying amount**
At 5 April 2021
**13**
**Investment property**
**Fair value**
At 6 April 2020
Net gains or losses through fair value adjustments
At 5 April 2021|**2021**
**2020**
**Number**
**Number**
81
75
**2021**
**2020**
**£**
**£**
570,878
558,788
3,374
6,738
2,342
3,011
576,594
568,537
**Fixtures and fittings**
**£**
760
9,610
10,370
760
2,403
3,163
7,207
**2021**
**£**
200,000
62,500
262,500|
|---|---|
- 17 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **13 Investment property**
**(Continued)**
The fair value of the investment property is determined by the trustees based on their understanding of the property market and the specific property concerned, derived from recent comparable transactions on the market .
## **14 Debtors**
|**Debtors**|||
|---|---|---|
||**2021**|**2020**|
|**Amounts falling due within one year:**|**£**|**£**|
|Other debtors|79,000|79,000|
Other Debtors is an amount due from The Friends of Wiznitz Ltd, a connected charity of which Mr E Gottesfeld a trustee of this charity is also a trustee.
## **15 Loans and overdrafts**
|Bank overdrafts
Payable within one year|**2021**
**£**
501
501|**2020**
**£**
-
-|
|---|---|---|
## **16 Creditors: amounts falling due within one year**
|**Notes**
Bank overdrafts
**15**
Other taxation and social security
Other creditors
Accruals and deferred income|**2021**
**£**
501
2,981
-
6,240
9,722|**2020**
**£**
-
-
56,004
5,000
61,004|
|---|---|---|
- 18 -
## **C.M.A. COMMUNITY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 5 APRIL 2021**_
## **17 Related party transactions**
During the year the nursery and school used rent free, a building provided by The Friends of Wiznitz Ltd, and also received donations of £22,000 (2020: £49,900) from The Friends of Wiznitz Ltd, a connected charity of which Mr E Gottesfeld is a trustee.
The charity made charitable grants of £75,000 (2020: £211,500) to CMZ Ltd a charity in which a close family member of Mr E Gottesfeld is a trustee.
The charity paid £1,260 to All Checks Ltd a company in which a trustee of the charity is also a director, this has been carried out under normal market conditions.
|**18**|**Cash generated from operations**|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
||Surplus/(deficit) for the year|73,472|(65,066)|
||Adjustments for:|||
||Investment income recognised in statement of financial activities|(23,394)|(21,281)|
||Depreciation and impairment of tangible fixed assets|2,403|-|
||Movements in working capital:|||
||(Decrease)/increase in creditors|(51,783)|56,004|
||**Cash generated from/(absorbed by) operations**|698|(30,343)|
## **19 Analysis of changes in net funds**
The charity had no debt during the year.
- 19 -