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2021-06-30-accounts

Registered number: 03943667 Charity number: 1084213

SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

EE——————— SS ee

UNAUDITED

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

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CONTENTS

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||||||| |---|---|---|---|---|---| |aOOOO| |Page| |Reference and Administrative|Details|of the Company,|its Trustees|and Advisers|1| |Trustees’ Report|2-10| |Independent Examiner's Report|11-12| |Statement of Financial Activities|13| |Balance Sheet|14| |Statement of Cash Flows|15| |Notes to the Financial|Statements|16|- 26|

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2021

Trustees Mrs C Buchanan
MrsV Rowell, Chair
Mr ! McFarlane
Mrs J Karpuk
Mrs K Hockley (appointed 18 February 2021)
Mrs C Whitaker (appointed 18 February 2021)
Company registered
number 03943667
Charity registered
number 1084213
Registered office Sawston Nursery
Tannery Road
Sawston
Cambridgeshire
CB22 3UW
Company secretary MrR Turnbull
Head ofNursery MrsT Spencer
Accountants Peters Elworthy&Moore
Chartered Accountants
Salisbury House
Station Road
Cambridge
CB1 2LA
Bankers Barclays Bank Plc
12A Market Place
Saffron Walden
CB10 1HR
Solicitors Adams Harrison
43 High Street
Sawston
Cambridge
CB223BG

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2021

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Sawston Childcare Limited (the company) for the year ended 30 June 2020. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition - October 2019).

Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 has been omitted.

OBJECTIVES AND ACTIVITIES

Policies and objectives

The charitable company was established to operate Sawston Nursery whose purpose is to provide quality childcare for the children of residents of the villages of Sawston and Pampisford, for children whose parents work in Sawston, and, if space is still available, for the children of residents of the surrounding villages of South Cambridgeshire and adjacent counties.

Sawston Nursery is registered with Ofsted to provide the equivalent of 68 full time places. Ofsted carried out its most recent full inspection of the Nursery in March 2018 and found the provision to be ‘good’.

The nursery is equipped and staffed to provide for children with Special Needs. Cambridgeshire County Council's Care & Education Department carries out annual quality development reviews.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance ‘Public benefit: running a charity (PB2)'.

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

OBJECTIVES AND ACTIVITIES (CONTINUED)

Activities for achieving objectives

The primary objective of Sawston Childcare is the care and education of children from the age of 3 months until they are eligible to start school by the provision of a Day Nursery. As a charity, the company offers equal opportunity and access to all families by providing a fair fee structure. The directors are aware of the Charity Commission guidance on public benefit and their policies continue to reflect this in the operation of the Nursery in the following ways:

(a) The nursery operates throughout the year apart from the Christmas week.

(b) In line with their funding budget, the John Huntingdon's Charity and Sawston Childcare work in partnership to provide subsidised places to help families whose children need childcare but cannot afford it. The South Cambridgeshire District Team, local healthcare workers and members of the Sawston Children’s Centre can also make recommendations for support from this partnership. In the year ending 30 June 2020 seven children benefited from subsidised places. Currently, one child qualifies for assistance during the coming year. The John Huntingdon’s Charity helps to identify families in need of childcare. This is achieved by scrutiny of family benefits, counselling, CAB input and support by individual workers.

(c) Sawston Childcare supports the education and training of future childcare providers by providing work experience placements for students of several local secondary, sixth form and further education colleges.

(d) The Nursery recruits and sponsors the training of apprentices with a view to them progressively obtaining qualifications in early year’s education.

(e) The Nursery is constantly aware of the changing requirements in the community which must be balanced with the need for a stable and committed work force. Staff have all undertaken training in first aid and child protection during the year.

(f) The nursery places an emphasis on learning outdoors. All of the rooms operate freeflow whereby children can choose whether to learn inside or outside the room. The rooms also have a covered area to provide some shelter during inclement weather.

(g) Any person enquiring about childcare, but not able to be accommodated by Sawston Childcare, is offered help finding an alternative by giving details of how to access the Council maintained register of local childminders and pre-schools.

(h) Being mindful of its charitable status, Sawston Childcare maintains its fees at a level necessary to cover only running costs.

(i) As the directors of Sawston Childcare Limited provide their professional skills and services as unpaid volunteers, fees to users of the Nursery can be maintained at a lower rate.

In the year ending 30 June 2022 it continues to be the intention of Sawston Childcare to further increase its benefits to people who are unable to pay the fees in the following ways (in addition to (a) - (i) above):

Sawston Childcare aims to increase the benefit provided to families who access government-funded sessions, and are in receipt of income support and any other qualifying benefits. It wishes particularly to increase the number of 2 year olds who are eligible for 15 hours of government funded places. Eligibility is dependent on strict deprivation criteria and selection is led by staff at the local Children’s Centre.

There continues to be a reasonable, albeit reduced, demand for places in the baby room. However parents are requesting start times spread across the year and the directors are considering ways in which this can be

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ee SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee) a TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021 a OBJECTIVES AND ACTIVITIES (CONTINUED)

achieved whilst maintaining the appropriate staffing levels.

The parents’ organisation, (SNAP), has continued to provide significant support during the year including the financing of the Dunster Pagoda and the company wishes to express its gratitude to SNAP for its help.

Coronavirus

The impact of the Corona virus pandemic has had a lesser effect in the year under review than was the case in the previous year. However, there has been some loss of income and disruption to children’s attendance at the nursery caused by staff shortages arising from staff self isolating and the consequent difficulty in meeting the room ratios set by Ofsted.

The company has successfully claimed further refunds from HM Revenue and Customs in the year in respect of the salaries of a small number of staff placed on furlough.

ACHIEVEMENTS AND PERFORMANCE

Review of activities

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|||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |The|overall|number|of|children|using|the|Nursery|over|the|past|twelve|months|showed|a|decrease|when| |compared|with|the|previous|year.|The|number|of|children|from|Sawston|and|Pampisford|also|reduced|and| |provision|for them|remains|a|priority|in|allocating|places.| |Part|of the|reduction|in the number of children|attending was|attributable to|a|significant|increase|in the number| |of children who have attended ona|full time|basis.|2021|2020| |Sawston|& Pampisford|residents|42|46| |Other|children|38|58| |Parents working|in Sawston|but not resident|3|8| |Total|children|attending|at 30th June|83|112| |Equivalent full-time|places|68|68| |Maximum|number of places|68|68| |Children|with subsidised|fees|(see above)|3|7| |Children|deemed|to have|Special Needs|3|6|

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The charitable company actively promotes staff training. During the past year staff have continued working towards, and achieving, NVQ Levels 2 and 3. Various members of staff have undertaken training in Paediatric First Aid, Child Protection, and various courses revisiting the Early Years Foundation Stage Curriculum and the latest OFSTED requirements.

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

FINANCIAL REVIEW

Financial Review

The net surplus for the year and the movement in funds for the year was £20,005 (2020 net surplus £2,464), which resulted in an accumulated surplus on unrestricted funds at the year-end of £136,371 (2020: £116,366).

The continuing demand for places is reflected in the increase in the level of registration fees received in the year.

Demand for places continues to be affected by the impact of the pandemic with a significant number of parents continuing to work from home whilst others have ceased to be employed.

The company received support from John Huntingdon’s Charity, the owner of the freehold of the nursery premises, in the form of a deferral of the rent review due on 1st January 2021 which is now anticipated to take place with effect from 1st January 2022.

it is impossible to predict the impact of any further lockdown but every effort will continue to be made to balance expenditure with anticipated income.

Reserves policy

At the year end, free reserves (exlcuding fixed assets) were £65,789 (2020: £41,059).

The level of reserves at the year end was equivalent to 4.35 weeks expenditure. Reserves at 30 June 2020 were equivalent to 2.75 weeks expenditure. It is the medium to long term aim to raise the level of reserves to 13 weeks’ expenditure.

Principal funding

The main source of income for the Nursery is charges for childcare places. Grants are sought from appropriate bodies towards funding costs incurred for children with special needs.

All government funded hours are provided at a loss to the company and the trustees have, following considerable discussion, assessed the number of hours which the nursery is able to provide to eligible parents.

Government and Local Authority Funding for pre-school children falls into 2 categories: 1. Universal Hours Funding ‘2. Extended Hours Funding

Extended hours funding is available to parents who have applied to HM Revenue and Customs and have been issued with an authentication code by HMRC confirming that they are eligible. Extended hours entitle parents to benefit from 30 hours funding during term time, i.e.: 38 weeks per year. As the nursery is open for 50 weeks per year, (excluding bank holidays), the hours are reduced to 22.8 hours per week.

Where the parents do not qualify for the extended hours funding, the nursery provides access to universal hours funding which is restricted to 15 hours funding per week. Again, this is restricted to 38 weeks per annum.

To ensure that transparency and fairness is provided to all parents the nursery offers up to 20 hours free childcare per week to pre-school children whose parents are eligible to receive the extended hours funding. Available hours are restricted to 4 hours per day. The nursery no longer offers either morning or afternoon sessions as experience has shown that it is difficult to fill the equivalent afternoon or morning session.

Parents of children unable to claim the extended hours funding receive a maximum of 11.4 hours per week.

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

eeeeee TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021 NN—II—II Again, this is spread over the week with a maximum of 4 hours funding per day.

Cambridgeshire County Council contributes towards the cost of these hours at a rate which has been increased but remains lower than required. Funding is also available, where appropriate, for vulnerable 2 year old children and for children with special educational needs.

Plans for the Future

The nursery continues to receive a high number of applications from parents wishing to register their child with the nursery. Should a reasonable percentage of these registrations convert into occupied places, the nursery should be able to run close to its registered capacity.

However, experience in the current year indicates that a significant number of applications no longer result in occupied places.

There has been a noticeable trend for parents to delay the age that their children start attending the nursery and the decision has been taken to merge the two baby rooms to form one room. Regrettably this has resulted in one room leader position becoming redundant with effect from 1st September 2021. Provision for the financial impact of the redundancy has been accounted for in the current year. Emphasis on training will continue to ensure that well trained and motivated staff are available to provide a high standard of child-care. Continuing attention will be given to the need to provide public benefit.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Sawston Childcare was incorporated on 9 March 2000 and obtained charitable status on 20 December 2000. The charitable company is governed by its Memorandum and Articles of Association.

Methods of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

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TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
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STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

Organisational structure and decision-making policies

The company, which operates under the name of Sawston Nursery, had a board of six trustees at 30th June 2021:

Two trustees are parents of children attending the nursery and were elected by other parents. Two trustees are local persons with qualifications and expertise in childcare and early years’ education. One trustee has expertise in information technology.

One trustee is a school administrator and management specialist.

A significant issue has arisen in that it is a requirement of Ofsted that the Nominated Individual is a trustee of the company.

It was confirmed at the Annual General Meeting on 27 November 2020 that trustees were appointed to serve for the following periods:

Vivien Rowell 1 year

lain McFarlane 1 year Catriona Buchanan 2 years Jennifer Karpuk 2 years

Dr Ben Todd resigned as a trustee on 14th February 2021.

Vivien Rowell, lain McFarlane and Jennifer Karpuk have indicated their intention to resign at the Annual General Meeting due to be held on 24th November 2021.

Katie Hockley and Charlie Whitaker were appointed as trustees on 28th February 2021 and offer themelves for re-election.

Dr Garima Sharma, Emma Chipps and Neil Adams have indicated their willingness to be appointed as trustees and offer themselves for election.

Vivien Rowell has acted as chair of trustees and as the nominated individual for the purposes of Ofsted. This latter role was in accordance with the requirement by Ofsted that the person appointed has to be a trustee of the company. She will resign as chair at the Annual General Meeting whilst continuing as a trustee and as the nominated individual for a brief period. None of the other continuing trustees are prepared to assume the position of nominated individual.

As a result, the company has sought to obtain permission from the Charity Commission to enable the manager of the nursery to becomea salaried trustee with a view to assuming the role of the nominated individual. Prior to making its submission to the Charity Commission the trustees carried out a full risk assessment to identify any conflict of interest which may arise.

The reply from the Charity Commission is outstanding and is currently overdue.

When the approval of the Charity Commission has been received, an Extraordinary General Meeting is to be held to submit the revised Memorandum and Articles of Association to the members of the company for approval following which it is the intention that Catrina Spencer wilt be elected as the salaried trustee and will assume the role of the nominated individual.

Apart from the salaried trustee, all other trustees are unpaid and receive no remuneration for their services. All trustees guarantee to contribute an amount not exceeding £10 to the assets of the charitable company in the

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a SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

EE TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

event of winding up.

New trustees receive induction training. This includes appropriate specialist instruction if required.

The Board of Trustees has prepared operational procedures which are subject to constant review and are implemented by the Head of Nursery, who is responsible for the day to day management of the nursery. The Board approves all other matters.

Policies adopted for the induction and training of Trustees

New directors receive induction training. This includes appropriate specialist instruction if required.

The Board of Directors has prepared operational procedures which are subject to constant review and are implemented by Mrs Tina Spencer, Head of Nursery, who is responsible for the day to day management of the nursery. The Board approves all other matters.

Pay policy for key management personnel

Management personnel are recruited at salaries commensurate with their levels of competence, qualifications and experience taking into account their previous salary and the salaries of other applicants.

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

er

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

nn STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

Financial risk management

The trustees have conducted their own review of the major risks to which the company is exposed and have established systems designed to mitigate those risks.

Financial risks include:

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

a_i TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

TTT STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUED)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also the directors of the company for the purposes 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial Statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enabie them to ensure that the financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Mrs V Rowell Trustee Date: 24 November 2021

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SAWSTON CHILDCARE LIMITED

(A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 JUNE 2021

Independent Examiner's Report to the Trustees of Sawston Childcare Limited (‘the company’)

| report to the charity Trustees on my examination of the accounts of the company for the year ended 30 June 2021.

Responsibilities and Basis of Report

As the Trustees of the company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, | report in respect of my examination of the company's accounts carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination | have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner's Statement

Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. | confirm that | am qualified to undertake the examination because | am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

| have completed my examination. | 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)].

| 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.

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

I

This report is made solely to the company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that | might state to the company’s Trustees those matters | am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, | do not accept or assume responsibility to anyone other than the company and the company's Trustees as a body, for my work or for this report.

Signed: R Brodocu pated: 13 Decemioer 202 Kelly Bretherick FCA

Peters Elworthy & Moore Chartered Accountants Salisbury House Station Road Cambridge CB1 2LA

i i

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SAWSTON CHILDCARE LIMITED

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2021

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||||||| |---|---|---|---|---|---| |a| |Unrestricted|Total|Total| |funds|funds|funds| |2021|2021|2020| |Note|£|£|£| |Income|from:| |Donations|2|4,496|4,496|767| |Charitable|activities|3|788,736|788,736|712,938| |Investments|4|2|2|116| |Other income|5|42,884|12,884|64,912| |Total|income|-|806,118|806,118|778,733| |—| |Expenditure|on:| |Charitable|activities|6|786,113|786,113|776,269| |Total|expenditure|786,113|786,113|776,269| |NET INCOMEXEXPENDITURE) AND|NET| |MOVEMENT|IN FUNDS|20,005|20,005|2,464| |Reconciliation|of funds:| |Total funds|brought forward|116,366|116,366|413,902| |Net movement|in|funds|20,005|20,005|2,464| |Total funds|carried forward|136,371|136,371|116,366|

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The notes on pages 16 to 26 form part of these financial statements.

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 03943667

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|||||| |---|---|---|---|---| |BALANCE SHEET| |AS AT 30 JUNE|2021| |I|a| |Note|2021|2020| |Fixed|assets|£|£| |Tangible assets|8|70,582|75,307| |Current|assets|70,582|75,307| |Debtors|9|19,791|6,093| |Cash|at bank and|in hand|197,281|170,921| |217,072|177,014| |Creditors:|amounts|falling due within|one| |year|10|(151,283)|(135,955)| |Net current assets|65,789|41,059| |Total net assets|136,371|116,366| |Charity|funds| |Unrestricted funds|136,371|116,366| |Tota! funds|136,371|116,366|

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The company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statemenis.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: ~ Lael Mrs V Rowell (Trustee) Date: 24 November 2021

The notes on pages 16 to 26 form part of these financial statements.

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SAWSTON CHILDCARE LIMITED

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |2021|2020| |Note|£|£| |Cash|flows|from|operating|activities| |Net cash|used|in|operating|activities|12|36,005|29,179| |Cash|flows|from|investing|activities| |Dividends|and|interest|2|116| |Purchase|of tangible|fixed|assets|(9,647)|(18,764)| |Net|cash|used|in|investing|activities|(9,645)|(18,648)| |Change|in|cash|and|cash|equivalents|in|the|year|26,360|10,531| |Cash|and|cash|equivalents|at the|beginning|of|the|year|170,921|160,390| |Cash|and|cash|equivalents|at the end|of the|year|13|197,281|170,921| |The|notes|on|pages|16|to|26|form|part|of these|financial|statements|

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

a

———e_es NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

eeOc 1. ACCOUNTING POLICIES

4.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Sawston Childcare Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

No significant estimates or judgements were made by management in preparing these financial statements.

4.2 COMPANY STATUS The Company is a company limited by guarantee. The members of the Company are the Trustees named on page 7. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.

4.3 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Investment income, gains and losses are allocated to the appropriate fund.

1.4 GOING CONCERN

In light of the global pandemic, the Trustees have specifically considered the impact of the COVID-19 (coronavirus) pandemic, including the extent to which the charity has experienced disruption in its activities to date. The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements continue to be prepared on the going concern basis.

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

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s fe ACCOUNTING POLICIES (CONTINUED)
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1.5 INCOME

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Parent and third party fees are recognised in the period to which they relate, with any fees in advance being deferred.

Grants receivable, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year which they are received.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Interest on funds held on deposit is included when received and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid of payable by the bank.

1.6 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and are subsequently measured at their settlement value.

1.8 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

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SAWSTON CHILDCARE LIMITED

(A Company Limited by Guarantee)

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ee
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
nnee TTT
1: ACCOUNTING POLICIES (CONTINUED)
4.8 TANGIBLE FIXED ASSETS AND DEPRECIATION (CONTINUED)
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Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives using the straight-line method.

Depreciation is provided on the following bases:

Nursery Equipment - Straight line over 5 years Office furniture and equipment - Straight line over 5 years Tenant's adaptations - Straight line over 10 years

1.9 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.10 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation.

4.12 OPERATING LEASES

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

1.13 PENSIONS

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

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SAWSTON CHILDCARE LIMITED {A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

2. INCOME FROM DONATIONS AND GRANTS

----- Start of picture text -----
||| |---|---| |Donations| |TOTAL|2020|

----- End of picture text -----

----- Start of picture text -----
|||| |---|---|---| |Unrestricted|Total|Total| |funds|funds|funds| |2021|2021|2020| |£|£|£| |4,496|4,496|767| |767|767|

----- End of picture text -----

3. INCOME FROM CHARITABLE ACTIVITIES

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Unrestricted|Total|Total| |funds|funds|funds| |2021|2021|2020| |£|£|£| |Third|party fees|89,015|89,015|118,028| |Income|from|parent fees|699,721|699,721|594,910| |788,736|788,736|712,938| |TOTAL|2020|712,938|712,938|

----- End of picture text -----

Included within third party fees are governement grants representing Early Years Funding from Cambridgeshire County Council of £87,391 (2020: £96,781). This grant is for funding the 15 hours of free childcare for eligible households.

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

I

NE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

I

----- Start of picture text -----
4. INVESTMENT INCOME
----- End of picture text -----

Unrestricted
funds		 Total
funds		 Total
funds
2021 2021 2020
£ £ £
Investmentincome 2 2 416
TOTAL2020 116 116
  1. OTHER INCOMING RESOURCES
Unrestricted
funds		 Total
funds		 Total
funds
2021 2021 2020
£ £ £
CoronavirusJob RetentionScheme 12,884 12,884 64,912
TOTAL2020 64,912 64,912

The charity received a government grant under the Coronavirus Job Retention Scheme (CJRS) to cover the salaries of furloughed staff of £12,884 (2020: £64,912).

6. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Activities
undertaken
directly
2021		 Support
costs
2021		 Total
funds
2021		 Total
funds
2020
£ £ £ E
Nursery,managementand
costs		 administration 724,735 61,378 786,113 776,269

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

  1. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF DIRECT COSTS

Total Total
funds funds
2021 2020
£ £
Wages and salaries §56,062 560,552
Office rentals and other costs 84,022 82,563
Computer costs 1,726 1,409
Nursery operating costs 82,925 74,497
724,735 719,021

ANALYSIS OF SUPPORT COSTS

Totai Total
funds funds
2021 2020
£ £
Staff costs 29,749 24,038
Depreciation 14,372 14,823
Marketing 997 776
Bank charges 656 2,217
Consultancyand professional fees 8,975 9,494
Accountancy 6,629 5,900
61,378 57,248

Governance costs amounted to £3,888 (2020: £4,183)

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

eee eee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

is STAFF COSTS

2021 2020
£ £
Wagesand salaries
Social securitycosts
Contribution todefined contribution pensionschemes		 546,831
30,422
8,558		 544,783
31,635
8,172
585,811 584,590

Included above is an ex-gratia payment relating to one employee amounting to £10,455 (2020: none).

The average number of persons employed by the company during the year was as follows:

2021 2020
No. No.
Nurserystaff
Administrative staff		 30
2		 35
4
32 36

The average headcount expressed as full-time equivalents was:

2021 2020
No. No.
Nurserystaff
Administrative staff		 19
1		 20
1
20 21

No employee received remuneration amounting to more than £60,000 in either year.

Key management personne! of the charity comprises the Trustees, Head of Nursery and Deputy Heads of Nursery. The Trustees have all given their time and expertise without any kind of remuneration or other benefit in kind (2020: £Nil). The total employment benefits of key management personnel, including employer pension contributions were £87,138 (2020: £91,403).

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

8. TANGIBLE FIXED ASSETS

Office
Fixturesand _ furniture & Tenants’
fittings equipment adaptions Total
£ £ £ £
COST ORVALUATION
At 1 July2020 34,550 29,721 134,233 198,504
Additions 306 4,843 4,498 9,647
At 30 June 2021 34,856 34,564 138,731 208,151
DEPRECIATION
At 1 July2020 32,203 26,629 64,365 123,197
Charge forthe year 1,008 2,204 11,160 14,372
At 30 June 2021 33,211 28,833 75,525 137,569
NET BOOKVALUE
At 30 June 2021 1,645 5,731 63,206 70,582
At 30 June 2020 2,347 3,092 69,868 75,307
DEBTORS
2021 2020
£ £
DUE WITHIN ONEYEAR
Trade debtors 858 785
Other debtors 681 182
Prepayments and accrued income 18,252 5,126
19,791 6,093

9. DEBTORS

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

ee

SAWSTON CHILDCARE LIMITED
(A Company LimitedCompany LimitedLimited by Guarantee)Guarantee)		 SAWSTON CHILDCARE LIMITED
(A Company LimitedCompany LimitedLimited by Guarantee)Guarantee)		 SAWSTON CHILDCARE LIMITED
(A Company LimitedCompany LimitedLimited by Guarantee)Guarantee)		 SAWSTON CHILDCARE LIMITED
(A Company LimitedCompany LimitedLimited by Guarantee)Guarantee)
ee
NOTESTOTHE FINANCIALSTATEMENTS
FORTHEYEARENDED 30JUNE 2021
OO
a Oe
40. CREDITORS:AMOUNTS FALLINGDUEWITHIN ONEYEAR
2021 2020
£ £
Tradecreditors
Othertaxation and social security
Othercreditors
Accrualsand deferredincome		 21,342
8,492
43,989
77,460		 40,501
6,949
34,615
53,890
151,283 435,955
2021 2020
£ £
DEFERRED INCOME
Deferred incomeat 1 July2020
Resources deferred duringtheyear
Amounts released from previous periods		 30,862
50,404
(30,832)		 24,997
30,862
(24,997)
50,434 30,862

Deferred income relates to fees paid in advance and third party fees for the remainder of the summer term.

41. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds		 Total
funds
2021 2021
£ £
Tangiblefixedassets
Currentassets
Creditors duewithin oneyear		 70,582
217,072
(151,283)		 70,582
217,072
(151,283)
TOTAL 136,371 136,371

ip

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED) ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Unrestricted|Total| |funds|funds| |2020|2020| |£|£| |Tangible|fixed|assets|75,307|75,307| |Current|assets|177,014|177,014| |Creditors|due|within|one|year|(135,955)|(135,955)| |TOTAL|116,366|116,366| |RECONCILIATION|OF|NET|MOVEMENT|IN|FUNDS|TO|NET|CASH|FLOW|FROM|OPERATING| |12.|ACTIVITIES| |2021|2020| |£|£| |Net|income|for the|year|(as|per|Statement|of|Financial|Activities)|20,005|2,464| |ADJUSTMENTS|FOR:| |Depreciation|charges|14,372|14,823| |Interest|(2)|(116)| |Decrease/(increase)|in|debtors|(13,698)|22,001| |Increase/(decrease)|in|creditors|15,328|(8,973)| |NET CASH|PROVIDED|BY|OPERATING|ACTIVITIES|36,005|30,199| |13.|ANALYSIS|OF|CASH AND|CASH|EQUIVALENTS| |2021|2020| |£|£| |Cash|in|hand|197,281|170,921| |TOTAL CASH AND|CASH|EQUIVALENTS|197,281|170,921|

----- End of picture text -----

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SAWSTON CHILDCARE LIMITED (A Company Limited by Guarantee)

nn

eee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

44. ANALYSIS OF CHANGES IN NET DEBT

At 1 July
2020		 Cash flows At30June
2021
Pa £ £
Cash atbankand inhand 170,921 26,360 197,281
170,921 26,360 197,281

15. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for the benefit of the employees. The pension cost charged to the Statement of Financial Activities for the period was £8,203 (2020: £8,172). There were no accrued contributions at the Balance Sheet date of £4,091 (2020: £2,900).

  1. OPERATING LEASE COMMITMENTS

At 30 June 2021 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

cancellable operating leases as follows:
2021 2020
£ £
Not laterthan 1 year
Laterthan 1 yearand notlaterthan 5years
Laterthan5years		 68,400
273,600
239,400		 68,400
273,600
307,800
581,400 649,800

17. RELATED PARTY TRANSACTIONS

In the year to 30 June 2021, IT support, equipment and training amounting to £418 (2020: £379) was provided by Boldfield Limited. lan McFarlane, a trustee of Sawston Childcare Limited is also a director of Boldfield Limited. At the year end a balance of £nil (2020: £nil) was owing to Boldfield Limited.

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