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2022-03-31-accounts

HARMONY COMMUNITY DAY NURSERY Trading under Harmony Neighbourhood Nursery (A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS

For the year ended 31st March 2022

Company Number: 4153660 Charity Number: 1087071

Harmony Community Day Nursery Company Information

Status

Harmony Community Day Nursery has charitable status and is a company limited by guarantee and not having a share capital.

Directors/Trustees

Pat Bunche (Chair) Richard Barnett - Treasurer/Secretary

Other Trustees

Andy Sharpe Solange Le Jeune Ivana Jovanovic Amelie Lardoux Ciara Solmi

Secretary

Jana Hassan

Registered Office

Ark Swift Annex Dorando Close London W12 7QH

Bankers

HSBC plc 16 Sheperds Bush Green W12 8PT

CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent, ME19 4JQ

Auditors

Brookfield & Co 18 Concanon Road London SW2 5TA

Registered number

4153660

Charity Reference Number 1087071

1

Harmony Community Day Nursery Registered number: 4153660 Report of the trustees

The trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity for the year ending 31 March 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Acts purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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) (effective 1 January 2015).

`

Chair’s Report (Richard Barnett)

Harmony was presented with significant challenges arising from the continuing Covid pandemic and associated staff absences, employee turnover, difficulties in recruiting suitably qualified staff, and ongoing adjustment to the Ark Swift site. Notwithstanding this, Harmony continued to provide high quality affordable childcare to local families, in accordance with its primary mission, throughout the year. In order to improve management structures, a new role of Co-Deputy Manager, and two Room Leader roles, were created, and recruitment was started to fill these positions.

We were informed that a temporary site on the redeveloped White City site would no longer be available for Harmony from summer 2023 as originally envisaged under the EdCity plan (prior to our move into a new permanent home in 2025). We commenced discussions with the London Borough of Hammersmith and Fulham with a view to finding a suitable alternative site for the nursery from mid-2023 to 2025, in order to provide continuity of service throughout this period.

Our purposes and activities

The aims and objectives of HCDN remain as stated in the last Annual Report and as set out in the company’s Memorandum and Articles of Association.

HCDN has been set up mainly to advance the development and education of children aged five and under in West London, in particular the London Borough of Hammersmith and Fulham.

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

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Harmony Community Day Nursery Registered number: 4153660 Report of the trustees

Organisational Structure

HCDN is a company limited by guarantee incorporated on 4th October 2000 and governed by its Memorandum and Articles of Association. The company was registered as a charity on 20[th] June 2001.

HCDN is based on the White City Estate in the London Borough of Hammersmith & Fulham. HCDN continues to work in partnership with local organisations throughout the borough.

A voluntary Board of Trustees (Management Committee) are elected to govern the work of the charity as its decision-making body. These are skilled individuals who have an interest in its aims and objectives.

Parents and carers are invited to become members of the Management Committee, together with other individuals with knowledge and experience of childcare, education and general business management. If gaps in the knowledge of the Committee are identified, attempts are made to recruit appropriate candidates with relevant skills, via professional support services such as the Volunteer Development Agency (VDA) or Voluntary Sector Resource Agencies (VSRA). Furthermore, Peninsula Group Ltd were contracted to support us with advice regarding Human Resources.

The Board of Trustees are elected at the company’s Annual General Meeting. New members are subject to an induction process, and training is provided where necessary through VSRA, VDA and the Local Authority. The Pre-School Learning Alliance induction pack “The Role of the Management Committee as Employers” has also been adopted. The Board of Trustees meets at least six times per annum.

Twenty-three members are employed by HCDN as follows:

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Harmony Community Day Nursery Registered number: 4153660 Report of the trustees

The educational programme

Harmony’s inclusive Teaching and Learning is based through Play Principles and in line with the Early Years Foundation Stage guidance (EYFS) and the Special Educational Needs and Disability Code of Practice. Our practice is to ensure that we meet both genders' needs through a non-sexist curriculum. We continue to provide Speech & Language (SLT) group sessions, for all age group on a weekly basis. These sessions have proved instrumental in supporting and identifying children with speech delays and when progress is slow to help us with making referrals. Furthermore, we continue the work and ethos of 'Every Child A Talker' (ECAT) project (government programme), to further enhance children’s language, and supports their concentration and listening skills. Hence working in partnership with our parents, has proven to further children’s development. Therefore, we provide chatter boxes and books to take home. These additional activities, especially the chatter boxes are based on children’s interests which provide children and parents with quality time together

Review of Activities/ Teaching & Learning

As our chairperson highlighted, that Harmony faced many challenges due to Covid, but thankfully we learnt many things from these experiences.

During the Government enforced lockdown, April & May, we provided parents online activities based on age-appropriate themes. After re-opening, Health & Safety and Hygiene were one of the main priorities as we put more rigorous infection control measures making children and staff aware of how to reduce the risk of spreading the infection. Many of the staff and parents’ experienced anxiety and stress. Due to the procedures implemented and the reassurance, after a while it eased the anxiety.

We have noticed upon the return of the children; they were eager to come back to resume some normality. Some of the activities such as sensory, had to be compromised, however, the children spent more of their time outdoors playing in the mud kitchen, planting and enjoying the nature. They were fascinated when observing some of the natural phenomena such as hatching of the chicks and the life cycle of the butterfly.

All face-to-face activities and meetings with the parents were conducted via Zoom.

Based on the development plan of the nursery and the adjustment due to the pandemic and the move of premises we continue making changes and improving our practice as of the following:

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Harmony Community Day Nursery Registered number: 4153660 Report of the trustees

SOCIAL EVENTS:

Parents social events were also compromised and had to be put on hold. until further notice

During Christmas festival, the pantomime was recorded and shared with the parents through a link

We celebrated children’s achievements for the school leavers by the end of July with some of the parents (following Covid Guidance, by wearing face masks and 2-meter distance outdoors).

STAFF TRAINING :

Harmony ran a comprehensive programme of Staff training in the 2021-22 year. Three members of the staff studied for Level 3 for Early Years and two were enrolled on Level 2 Childcare courses. Many members of staff completed Ofsted standard training for first aid, health & safety, food hygiene and safeguarding. 3 employees completed manager training continuing professional development and many other staff members also had early years service training for continuing professional development. Four members of staff also completed Special Educational Needs courses.

Financial Results

HCDN received most of its funding from fees charged to parents. This income is devoted to core funding and is sufficient to cover the overheads and administration costs of the nursery.

The Income and Expenditure Accounts disclose incoming resources for the financial year of £560,106 and outgoings of £548,807. Our reserves as of 31[st] March 2022 stand as follows: Restricted Funds £649 and Unrestricted Funds £822,124, of which £250,000 has been designated as noted below.

Reserves Policy

The Trustees of HCDN consider that accumulating reserve funds to enable the organisation to cope with specific unforeseen events, contingencies and opportunities is an essential part of carrying out their duties in the overall management of the nursery’s affairs.

The Designated Reserve:

Contingency reserve is intended to enable the nursery to cope with the unforeseen, and contains sufficient funds to cope with a worst-case scenario i.e. a sudden cessation of all funding or another move of premises, which is expected in 2023. In this circumstance the fund should be large enough to enable:

the nursery to continue to operate for a period of 3 months, this being a reasonable period to complete on-going work and make arrangements for winding down. £90,000 has been set aside for this eventuality.

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Harmony Community Day Nursery Registered number: 4153660 Report of the trustees

Tangible Fixed Assets for use by the Charity

HCDN has no fixed assets in the form of property.

Risk Management

HCDN undertook a full risk assessment in 2019-2020. The existing reserves policy is designed to ensure that HCDN can continue in an emergency. As far as projects are concerned the risks are outlined in monitoring and evaluation plans for each of the projects, which has been submitted to donors. The projects are also subject to individual and ongoing agreements between HCDN and project partners.

Trustees

The full list of members below reflects this:

Pat Bunche (Director / Chair) Richard Barnett - Treasurer/Secretary Andy Sharpe Amelie Lardoux Ivana Jovanovic Solange Le Jeune Ciara Solmi

Statement of Trustees’ Responsibilities

Company Law requires the Management Committee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period.

In preparing those financial statements, the Management Committee is required to:

6

Harmony Community Day Nursery Registered number: 4153660 Report of the trustees

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006.

The Trustees 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

Relationship with Funders

No trustee has any relationship with any of the main funders except as a Trustee of HCDN.

Volunteers

HCDN uses volunteers whenever necessary. They are always supervised, and references and enhanced DBS checks are taken up.

Auditors

The auditors, Brookfield & Co were appointed at the Annual General Meeting on 9[th] July 2022 to carry out this audit.

The Report was approved by the Board of Trustees on 5[th] October 2022 and signed on their behalf.

………………………..

Richard Barnett Director

7

Harmony Community Day Nursery Independent auditors' report to the shareholders of Harmony Community Day Nursery

We have audited the accounts of Harmony Community Day Nursery for the year ended 31 March 2022 which comprise the Profit and Loss Account, the Balance Sheet and the related notes.The accounting conventions that have been applied are the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP) and the Companies Act 2006 and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective 1 January 2015.

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

In accordance with the exemption provided by APB Ethical Standard - Provisions Available for Smaller Entities (Revised), we have prepared and submitted the company’s returns to the tax authorities and assisted with the preparation of the accounts.

Scope of the audit of the accounts

A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm

Opinion on the accounts

In our opinion the accounts:

Opinion on other matters prescribed by the Companies Act 2006

In our opinion the information given in the Directors' Report for the financial year for which the accounts are prepared is consistent with the accounts.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

J A Brookfield (Senior Statutory Auditor) for and on behalf of Brookfield & Co Accountants and Statutory Auditors

30 November 2022

18 Concanon Road London

SW2 5TA

8

Harmony Community Day Nursery Statement of Financial Activities for the year ended 31 March 2022

Restricted Unrestricted Total Total
Funds Funds Funds Funds
Notes 2022 2022 2022 2021
£ £ £ £
Incoming resources
Incoming resources from generated funds:
Nursery Fees - 530,749 530,749 408,915
Voluntary Income - Grants and donations 3 2,400 25,203 27,603 87,109
Other Income - - - 382
Investment income - 1,754 1,754 2,132
Total Incoming Resources 2,400 557,706 560,106 498,538
Resources expended
Costs of generating funds
Charitable activities - 546,687 546,687 490,287
Governance - 2,120 2,120 1,886
Total resources expended 4 - 548,807 548,807 492,173
Net incoming resources expended for the Year 2,400 8,899 11,299 6,365
Transfers between funds (6,451) 6,451 -
Funds brought forward 4,700 806,774 811,474 805,109
Total Funds carried forward 649 822,124 822,773 811,474

All of the above results derive from continuing charitable grants and activities and there were no recognised gains or losses other than the above results

The notes on pages 11 to 13 form part of these accounts.

9

Harmony Community Day Nursery Balance Sheet as at 31 March 2022

Notes
Current assets
Debtors
6
Investments held as current
assets
Cash at bank and in hand
Creditors: amounts falling due
within one year
7
Net current assets
Net assets
Funds of the Charity
Restricted Funds
9
General Funds
9
Total Funds
9		 2022
£
2,730
-
838,464
841,194
(18,421)
822,773
822,773
649
822,124
822,773		 2021
£
1,833
-
831,286
833,119
(21,645)
811,474
811,474
4,700
811,474
811,474

The notes on pages 11 to 13 form part of these accounts

Richard Barnett Director Approved by the board on 30 November 2022

10

Harmony Community Day Nursery Notes to the Accounts for the year ended 31 March 2022

1. Basis of accounting and accounting policies

a) Accounting Conventions

The financial statements have been prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP) and the Companies Act 2006 and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective 1 January 2015. The company constitutes a public benefit entity as defined by FRS 102.

There has been no change to the accounting policies (valuation rules and methods of accounting) since last year.

b) Incoming resources

Incoming resources are included in the SOFA when the charity becomes entitled to the resources, the Trustees are virtually certain they will receive the resources and the monetary value can be measured with sufficient certainty. Where incoming resources have related expenditure (as with fundraising for contract income), the incoming resources and related expenditure are stated gross in the SOFA. Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the funds. The value of any volunteer help received is not included in the accounts, but is described in the Trustee’s annual report. Investment income is included when receivable.

c) Resources Expended

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. Resources expended include attributable VAT which cannot be recovered. Governance costs include costs on the preparation and examination of statutory accounts, the costs of Trustee meetings and costs of any legal advice to the Trustees on governance or constitutional matters. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of the resources e.g. Staff costs by the time spent and other costs by their usage.

d) Restricted and Unrestricted Funds

The accounts distinguish between restricted and unrestricted funds. Restricted funds are received from donors and are subject to restrictions on the purposes for which they may be used. Unrestricted funds are those where there are no externally imposed restrictions and are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

e).Debtors

Trade and other debtors are recognised at the setlement amount due after any trade disount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.13

f) 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.

g) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount diue to settle the obligation can be measured ore estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

h) Pensions

Contributions to employee pension schemes are in line with government legislation.

i) Legal status of the Trust

The trust is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

11

Harmony Community Day Nursery Notes to the Accounts for the year ended 31 March 2022

2022 2021
£ £
2 Net Income for the year is stated after charging:
Auditors' Remuneration - Brookfield & Co 2,120 1,874
Harmony Community Day Nursery
Notes to the Accounts
for the year ended 31 March 2022		 Harmony Community Day Nursery
Notes to the Accounts
for the year ended 31 March 2022		 Harmony Community Day Nursery
Notes to the Accounts
for the year ended 31 March 2022
2
Net Income for the year is stated after charging:
Auditors' Remuneration - Brookfield & Co		 2022
2021
£
£
2,120
1,874
3
Voluntary Income - Grants and donations
Enjoy Benefits Grant
Furlough Payroll support
SEN support
Support for moving costs
4
Resources Expended
Costs of generating funds
Charitable Expenditure
Equipment renewals
Food and consumables
Staff Costs including payroll taxes
Activites, outings and other direct expenses
Publicity and recruitment
Training and other staff costs
Premises expenses
Repairs and Refurbishment costs
Communications
Insurance
Consultancy fees
Bad Debt
Bank Charges
Governance Costs
Audit and accountancy
AGM Costs
5
Employees
Staff costs were as follow;
Salaries and other staff costs
Social security Costs
The average number of staff during the year we
Full time
Part time
6
Debtors
Fees receivable
Other debtors and prepayments
7
Creditors: amounts falling due within one ye
Trade creditors
Other accruals and deferred Income
Other taxes and social security costs
8
Analysis of net assets between funds
Tangible fixed assets
Current Assets
Current Liabilities		 Restricted
£
2,400
-
-
2,400
Restricted
Funds
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
re as follows;
ar		 Unrestricted
£
-
7,463
17,740
-
25,203
Unrestricted
Funds
-
5,627
36,358
484,220
1,731
195
2,314
8,977
2,143
619
1,081
3,203
-
219
2,120
-
548,807
Funds
£
-
649
-
649
Restricted		 2022
£
2,400
7,463
17,740
-
27,603
2022

£
Total
-
5,627
36,358
484,220
1,731
195
2,314
8,977
2,143
619
1,081
3,203
-
219
2,120
-
548,807
2022
£
Total
452,479
31,741
484,220
17
6
2022
£
2,730
-
2,730
2022
£
13,798
2,520
2,103
18,421
Unrestricted
Funds
£
-
840,545
(18,421)
822,124		 2021
£
2,700
78,799
3,410
2,200
87,109
2021
£
Total
-
6,324
11,873
450,405
1,090
786
-
10,173
4,327
460
1,476
3,193
-
192
1,874
-
492,173
2021
£
Total
420,268
30,137
450,405
15
6
2021
£
752
1,081
1,833
2021
£
9,822
1,800
10,023
21,645
Total Funds
Funds
£
-
841,194
(18,421)
822,773

12

Harmony Community Day Nursery Notes to the Accounts for the year ended 31 March 2022

9 Analysis of net assets between funds

At
Incoming
1/4/21 Resources
Restricted Funds:
Enjoy Benefits Grant
4,700
2,400
Total Restricted Funds
4,700
2,400
Unrestricted Funds:
Designated Contingency Funds
Provisions re potential loss of funding
3 months operation costs
90,000
-
Legal fees
10,000
-
Redundancy costs
45,000
-
Employment Obligations
21,000
-
Workplace Pensions
10,000
-
Reburbishing Nursery Equipment
100,000
-
276,000
-
General Funds
530,774
557,706
Total Unrestricted Funds
806,774
557,706
Total Funds
811,474
560,106		 Outgoing
Resources
-
-
-
-
-
-
-
-
-
(548,807)
(548,807)
(548,807)		 Transfers
(6,451)
(6,451)
-
10,000
10,000
4,000
-
(50,000)
(26,000)
32,451
6,451
-		 At
31/3/22
649
649
90,000
20,000
55,000
25,000
10,000
50,000
250,000
572,124
822,124
822,773

Restricted Funds:

Enjoy Benefits Grant Funding towards resources and activities for qualifying children

10 Related party transactions and trustees' remuneration

Trustees' Remuneration

Trustees received no remuneration in respect of their services as Trustees (2021 £nil). Travel expenses of £Nil were paid in the period (2021 £Nil).

Related Party Transactions

No Trustees or other person related to the charity had any personal interest in any contract or transaction entered into by the charity (2021 None)

13