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2021-03-31-accounts

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE (Company limited by guarantee no. 04132678 registered charity no. 1089829)

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

(Company limited by guarantee no. 04132678, registered charity no. 1089829)

REPORT AND FINANCIAL STATEMENTS for the year ended 31 March 2021

CONTENTS

Page
Legal and administrative information 1
Committee members' report 2
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9
Cash flow statement 10
Notes to the financial statements 11

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS for the year ended 31 March 2021

Management Ms M M Norwood - Centre Manager
Committee members Ms B M Collier - Barrister
Ms N Mylius - Architect
Centre Manager Ms M M Norwood BA DipEd
Company Secretary Ms A Newman
Company reg. no. 04132678
Charity reg. no. 1089829
Registered office The Old Warm Bath House
76 Shacklewell Lane
Hackney
London
E8 2EY
Advisory Committee Ms A Newman
Ms B Sussman
Independent examiner Simon Erskine FCA FCIE DChA
61 Mortimer Road
London
NW10 5QR
Bankers Barclays Bank PLC United Trust Bank
Kingsland One Ropemaker Street
P O Box 3628 London
London EC2Y 9AW
E8 2JT
Scottish Widows Bank PLC Virgin Charity Deposit Account
P O Box 12757 Jubilee House
67 Morrison Street Gosforth
Edinburgh Newcastle Upon Tyne
EH3 8YJ NE3 4PL
Hampshire Trust Bank
Savings
55 Bishopsgate
London
EC2N 3AS

1

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

COMMITTEE MEMBERS' REPORT for the year ended 31 March 2021

The Management Committee members, who are also directors of the Charity for the purposes of Company law, and trustees for the purposes of charity law, submit their annual report and the financial statements of The Bath House Children's Community Centre (the Bath House) for the year ended 31 March 2021. The Management Committee has adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Company's governing document is its Memorandum and Articles of Association.

The management of the Bath House is the responsibility of the Management Committee members. Committee members are appointed at Annual General Meetings or co-opted at any time between Annual General Meetings by the Management Committee.

Recruitment and appointment of new trustees

Under the requirements of the Memorandum and Articles of Association, the members of the Committee shall hold office until the conclusion of the next Annual General Meeting after their election or co-option, as the case may be, but shall be eligible for re-election or re-option.

Organisational structure

From January 2016 Ofsted, as recommended by the Department of Education (DfE), have said that a charity's Nominated Person, who represents the charity in their dealings with Ofsted, must be a Board member of the governing body of the charity, therefore such a registered individual must be a company director/charity trustee. Maggie Norwood, the Company's Nominated Person and manager, was therefore appointed a Committee member in accordance with Ofsted's requirements.

The Trustees have and will continue to oversee the management, development and financial security of the Bath House. The Bath House has found new trustees amongst Bath House parents.

Induction and training of new trustees

Most Committee members are familiar with the practical work of the Children's Community Centre and have undertaken training to support their role. New Management Committee members are invited and encouraged to attend training sessions and an introduction pack is given to all new members. The most recent trustee, Nicky Mylius, has attended a governance training day.

Related parties

Apart from the working relationship between the funders, sometimes referred to as supporters, there were no other related parties to the charity other than the Committee members and their close family. Following the appointment of Maggie Norwood as charity trustee, her salary in her role as Projects Director of the Bath House is reported as a related party transaction. In the year under review, no other related party transaction took place. To protect and maintain the integrity and independence of Management Committee, it is charity policy that Maggie Norwood withdraws from any meeting where her terms or conditions of employment are discussed.

Staff and training

The Bath House employed about 36 people at any one time, mostly on a part-time basis, equivalent to 25 full-time posts.

In 2019 the Bath House adopted the London Living Wage policy. No staff at the Bath House are paid lower than the London Living Wage.

2

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

COMMITTEE MEMBERS' REPORT for the year ended 31 March 2021

Professional development and staff training remain a high priority, and all staff are encouraged to further their skills and understanding by taking courses. Many online courses were undertaken in the Furlough periods. There is a rolling program of training in Paediatric First Aid, Food Hygiene, and Safeguarding, as these qualifications need renewing every 3 years.

The Bath House did not offer our usual students placements during this year, due to the risks involved with the pandemic.

We have continued to have very close contact with Hackney Education Special Needs Team and they have provided professional support to us for children with Special Needs. Some childcare staff at The Bath House have had training in Special Educational Needs provided by Hackney Education. Hackney Education holds the work at The Bath House with Special Needs children in high esteem.

OBJECTIVES AND ACTIVITIES

Charitable objects

For children and young people in the London Boroughs of Hackney and Islington:

A) Benefit the community by providing facilities for the care, recreation, and education of children aged one to five years in a playgroup and nursery setting, and children aged three to fourteen years in out of school hours and holiday periods.

B) Advance the education and training of the workers and volunteers in the provision of the care, education and recreational facilities.

C) Provide family support and improve family welfare and conditions of life through childcare, education, and recreational provision.

Public benefit

In developing the objectives for the year and in planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit. The Bath House provides great benefit to local families as we provide a high quality, affordable and continuous childcare service for children aged 12 months to the end of primary school. This service enables parents to work, train, and manage their family life with very good childcare support. The Bath House assists its employees, students on placement, and volunteers, in their professional development, helping to create a skilled childcare workforce. The Bath House supports children in their learning, and in the development of social skills, and has been of great benefit to children with additional needs who require specialised care and input to assist their inclusion in childcare services. The Bath House is a highly regarded childcare centre (designated as Outstanding by Ofsted) with a strong reputation of operating with a community ethos, helping families in need wherever possible, with the aid of charitable and statutory funding.

Effects of the Covid19 Pandemic on the Bath House

The Covid pandemic caused much uncertainty and unknowns during 2020_21. At times the Bath House was closed and at other times only partially open. The After School Club never restarted. Some families withdraw from the nursery and our numbers diminished significantly. The income from fees was very much reduced. Government support through the Furlough scheme and Nursery Education grants enabled us to survive financially and pay our staff and bills.

3

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

COMMITTEE MEMBERS' REPORT for the year ended 31 March 2021

Bath House closed from 17 March 2020, a week earlier than the directive from the Government but very much in line with the information provided at the beginning of the pandemic in the UK. The Bath House was closed throughout April, May and June and all staff apart from 2 were furloughed. We received furlough funds for staff costs and continued to receive the Nursery Education grant for 3 & 4 year olds. We did not charge parents fees from the end of March through to September since we had received the Nursery grant for 3 and 4 year olds. The only fees charged during this time were the children of essential workers attending and not in receipt of any grant. Nursery parents were keen about opening up again in July and enough staff were willing to return to make it possible to partially open up again.

We were not able to run the holiday club for Easter, and May or October half terms, but we did run a reduced holiday club (approx. 20 children per day) for children 5 to 11 years in the Summer Holidays.

We opened again on 1 July 2020 with the pre-school children only (the Sunshine group), as advised by the Government – that is, to prioritize the leavers going on to school and the children of parents who were key-workers. Not all the children returned, but 20 pre-school children did, and 7 children of key-worker parents. We were able to use the private Rectory garden nearby, so that the children were outdoors for most of the day.

We remained open for 6 weeks until mid-August, running the nursery for three days only and shorter hours. This enabled staff to carry out the additional cleaning that was needed on a daily basis, and also to work with the reduced staff group that were willing to return to work. Several staff were shielding or considered higher risk, and there was a considerable amount of anxiety around returning to work while the community transmission rate was still over 1.

We also decided to open holiday club for school-age children, partly to meet the needs of essential workers and partly due to demand from our usual service users. We booked a local church hall nearby – St Barnabas, which we have used before, and ran the club for 4 days per week and three weeks only. We had 20 children per day, and the club was a great success for children and parents, and the staff were very happy to have the opportunity to meet the needs of local families.

We decided in September not to run any after-school or holiday club care for the foreseeable future.

Most staff returned from furlough either in part or fully in September 2020. Four staff stayed on furlough to the end of October, partly due to their family needs, and also because we didn’t need the full staff team having somewhat reduced numbers during this period. It was decided to keep the reduced number of children in the nursery for the coming 12 months due to the pandemic, the need to use outdoor space more, and not to crowd the rooms. We had 7 voluntary redundancies in January 2021. We redeployed some of the staff who were previously employed in after-school care to the nursery.

In January and February 2021 we partially closed the nursery for the national lockdown, but stayed open to children of key workers.

Staff seemed happy to return to work after being furloughed, reinforcing that their work is rewarding and that they are highly committed to the children and their roles as key-workers. The staff who requested redundancy did so very reluctantly, as they also felt very committed to their work, to the families and children, and to the Bath House Community.

4

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

COMMITTEE MEMBERS' REPORT for the year ended 31 March 2021

ACHIEVEMENTS AND PERFORMANCE

Charitable activities

The Bath House has kept its standard of providing its services at an outstanding grade in the year under review similar to the result obtained from the last two Ofsted inspections in 2015 and 2010. The Trustees are very proud of this achievement. Our next Ofsted inspection is delayed until 2021 or later, due to the Covid pandemic.

The Bath House is situated in the London Borough of Hackney. School results in Hackney had been very poor for a number of years, however the latest results show the primary and secondary schools are now achieving some of the best results in the whole country. We feel that the Bath House has played a role in attaining these results as high quality early years support and education is considered to be paramount in raising the educational attainment of Hackney children. The Bath House nursery children feed into the local schools and it is committed to giving children a very positive start to their education by building their self-esteem and providing stimulating and creative play.

Uniquely in Hackney, The Bath House had offered continuity of care for children from 12 months to 11 years, as we offered nursery care, after school care, and holiday care. These services enabled us to give long-term support to children and families. The pandemic has made it impossible to run our After School Club as the concentration of children in our premises would be too high to be Covid safe. The Holiday Club was taken off premises during the Summer holidays but it was not continued in the other holiday periods due to the high levels of Covid infection.

The Bath House offers very high quality and affordable childcare to all local families, in line with our stated aims, and to the benefit of the local community. The waiting list is open to all and places are allocated on a first come first served basis. We include all children and have many children from lowincome families, and children with special needs that require special attention and often a one to one support worker. Our Special Needs co-coordinator works with specialist agencies to ensure that children and families receive all the additional support they require.

Our childcare services are usually fully subscribed, with long waiting lists for the Nursery and After School Club. We offered 48 full-time places for children Under Five. The places are very flexible in that children can attend between 2 to 5 days per week and stay until 3.00 or 6.00pm. There are also term-time only places for ages 2 years and over. The 1 to 2 year old group is full-time care only.

The After-School Care provided for up to 50 children per afternoon and Holiday Clubs provided for up to 45 children per day. The holiday and after school provision was used by a wide range of local families, benefiting parents with the security of having childcare outside of school time periods. The After School club is closed for the foreseeable future.

The Bath House website www.bathhouse.org.uk received over 1100 unique visitors per month.

Fundraising activities

We have a programme of fundraising throughout the year for the grants administered by Hackney Education that subsidise nursery education. We offer places to children who receive the means tested 2 year old grant, and we receive either the 15 or 30 hours grants for all 3 and 4 year olds. These grants were paid even though the children did not attend. In this pandemic period we applied for and received a government business grant of £10,000. We also received an insurance claim of £9,914 for loss of income. We claimed and received £352,757 in furlough money for staff wages during the year.

5

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

COMMITTEE MEMBERS' REPORT for the year ended 31 March 2021

FINANCIAL REVIEW

Principal funding sources

For the first year since we have been operating the parents’ fees did not provide most of the revenue income. Furlough (via the Coronavirus Job Retention Scheme) provided £353K, Nursery Education grants provided £141K and Parents’ fees £158K.

Reserves policy

The Committee has agreed that the Charity should build up its reserves to enable it to cover at least three months' wages for the staff and associated overheads. This is currently estimated at £140,000. At the year-end the free reserves stood at £158,385. In calculating free reserves the Trustees have excluded the designated reserve that represents fixed assets.

BUILDING IMPROVEMENTS

We continued to work with Lipton Plant Architects to re-design the Rainbow Room internally, creating a mezzanine level floor in part of the room and children’s toilets in the room on ground level. This work carried on from August through to mid-November.

FUTURE PLANS

The Bath House will continue to provide our staff with many training opportunities, and to maximise their potential, with a view to raising the standard of the childcare sector workforce. We will also continue to provide placements for students from local schools and colleges, benefitting these students in gaining valuable experience, and in some cases leading on to employment either at The Bath House or in another setting.

The Bath House will continue to support children with special needs and will seek funding for special needs and families in hardship and hard to reach families. This intention is in line with our aim of providing opportunity and the highest quality care and education to young children, and also providing long-term benefit for the families involved by including their children in our provision, and offering support and guidance to parents in need of assistance.

PREPARATION OF THE REPORT

This report has been prepared taking advantage of the small companies exemption of section 415A of the Companies Act 2006.

INDEPENDENT EXAMINER

The independent examiner, Simon Erskine FCA FCIE DChA, has indicated his willingness to accept reappointment.

This report was approved and authorised for issue by the Committee member on 17 December 2021 and signed on its behalf by:

Nicky Mylius Trustee/Director

6

INDEPENDENT EXAMINER'S REPORT TO THE MANAGEMENT COMMITTEE OF THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

I report to the charity trustees (Committee members) on my examination of the accounts of The Bath 1House Children's Community Centre for the year ended 31 March 2021 which are set out on pages 8 to 18.

This report is made solely to the Management Committee, as a body, in accordance with regulations made under section 154 of the Charities Act 2011. My work has been undertaken so that I might state to the Management Committee matters I am required to state to them in an Independent Examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Management Committee for my independent examination work, for this report, or for the statement I have given below.

Responsibilities and basis of report

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

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

Independent examiner's statement

Since 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. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

Simon Erskine FCA FCIE DChA

61 Mortimer Road London NW10 5QR

17 December 2021

7

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2021

Unrestricted
Funds
Notes
2021
£
INCOME FROM:
Donations and voluntary grants
2
353,757
Investments - deposit account interest
2,944
3
158,374
Other
4
11,258
TOTAL
526,333
EXPENDITURE ON CHARITABLE ACTIVITIES
Direct costs of nursery
5
398,494
Support costs
6
156,062
Other costs - provision for redundancy costs
-
TOTAL
554,556
(28,223)
RECONCILIATION OF FUNDS:
TOTAL FUNDS BROUGHT FORWARD
598,766
TOTAL FUNDS CARRIED FORWARD
570,543
£
Charitable activities
Net income/(expenditure)		 Restricted
Funds
2021
£
10,000
-
141,160
-
151,160
151,160
-
-
151,160
-
-
Nil
£		 Total
Funds
2021
£
363,757
2,944
299,534
11,258		 Total
Funds
2020
£
33,265
3,407
839,492
11,790
677,493 887,954
549,654
156,062
-		 696,737
172,515
63,262
705,716 932,514
(28,223)
598,766		 (44,560)
643,326
570,543
**£ **		 598,766
_£ _

NOTE ON COMPARATIVES

In 2020 the only restricted income was £40,561 grant income and the only expenditure was £40,561 Direct staff costs. In the 2020 accounts the employment allowance for NI purposes was treated as income instead of as a deduction to National Insurance. This has been corrected in these accounts resulting in a £3,000 reduction respectively in Other income and in Childcare staff costs. There has also been a minor reallocation between Donations and voluntary grants and Charitable activities in 2020.

The annexed notes form part of these financial statements

8

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE (company limited by guarantee no. 04132678)

BALANCE SHEET As at 31 March 2021

Notes
2021
£
£
FIXED ASSETS
Tangible assets
9
674,741
CURRENT ASSETS
Debtors
10
18,079
Cash at bank and in hand
223,381
241,460
CREDITORS: amounts falling due
within one year
11
(93,154)
NET CURRENT ASSETS
148,306
TOTAL ASSETS LESS CURRENT LIABILITIES
823,047
CREDITORS: amounts falling due
after one year
12
(252,504)
NET ASSETS
570,543
£
FUNDS
Unrestricted funds:
Designated fixed assets fund
14
412,158
General fund
14
158,385
570,543
570,543
**£ **		 £
26,465
456,793		 2020
£
561,599
299,747
483,258
(183,511)
285,954
312,812
861,346
(262,580)
598,766
_£ _
598,766
598,766
_£ _

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

For the year ending 31 March 2021 the Charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

(i) The members have not required the Charity to obtain an audit of its accounts for the year in question in accordance with section 476;

(ii) The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The financial statements were approved, and authorised for issue, by the Management Committee on 17 December 2021 and signed on their behalf by:-

NICKY MYLIUS, Trustee/Director

The annexed notes form part of these financial statements

9

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

CASH FLOW STATEMENT for the year ended 31 March 2021

2021
Note
£
Net cash flow from operating activities:
Net cash (used in)/provided by operating activities
13
(84,842)
Interest paid
(7,513)
Net cash (used in)/provided by operating activities (see below)
(92,355)
Cash flows from investing activities:
Interest received
2,944
Purchase of tangible fixed assets
(133,306)
Net cash provided by investing activities
(130,362)
Cash flows from financing activities
Loan repayments in year
(10,695)
Change in cash and cash equivalents in the reporting year
(233,412)
Cash and cash equivalents at 1 April
456,793
Cash and cash equivalents at 31 March
223,381
£
Cash and cash equivalents consists of:
Cash at bank and in hand
63,381
Short term deposits (see Note below)
160,000
Cash and cash equivalents at end date 20XY
223,381
**£ **		 2020
£
63,743
(9,536)
54,207
2,083
(1,500)
583
(10,599)
44,191
412,602
456,793
_£ _
136,793
320,000
456,793
_£ _

Short term deposits can be withdrawn without notice and paid an average interest rate of 2.2% during the year.

ANALYSIS OF CHANGES IN NET DEBT
Long-term borrowings
Short-term borrowings
Total liabilities
Cash and cash equivalents
Total net debt		 1.04.2020
£
(262,580)
(10,695)		 Cash flows
£
10,076
619		 31.03.2021
£
(252,504)
(10,076)
(273,275)
456,793
183,518
_£ _		 10,695
(233,412)
(222,717)
£		 (262,580)
223,381
(39,199)
£

10

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

1. ACCOUNTING POLICIES

(a) General information and basis of preparation of financial statements

The Bath House Children's Community Centre (the charity) is a charitable company limited by guarantee registered in England; its registered office is as shown on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The charity constitutes a public benefit entity as defined by the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The financial statements have been prepared in accordance with 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) issued in October 2019 (SORP 2019), FRS 102, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements are prepared on a going concern basis under the historical cost convention.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

No amount is included in the financial statements for volunteer time in line with the SORP 2019. Further detail is given in the Trustees' Annual Report.

The charity receives government grants towards its work. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

11

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is considered that all charitable activiites relate to the running of the Bath House Children's Community Centre.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

It is not considered that a significant amount of time has been spent on fundraising and hence no costs have been allocated to this heading.

(e) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Staff costs have been allocated between governance costs, other support costs and charitable activities on an estimated time basis by member of staff. Other overheads, including premises costs, have been allocated pro rata to staff costs.

(f) Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold land - not depreciated
Freehold buildings and improvements - 50 years
Office equipment and fittings - 5 years
Centre fixtures and fittings - 5 years

(g) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(h) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs.

(i) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

12

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

(j) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(k) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

(l) Judgements and key sources of estimation uncertainty

No judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies and there are no key sources of estimation uncertainty.

2. INCOME FROM DONATIONS AND VOLUNTARY GRANTS

Donations
Grants from London Borough of Hackney:
Grant for Support worker's salary
Coronavirus Job Retention Scheme
Other grants
Grant for loss of income due to Covid		 Unrestricted
Funds
2021
£
1,000
-
-
352,757
-
353,757
**£ **		 Restricted
Funds
2021
£
-
-
10,000
-
-
10,000
**£ **		 Total
Funds
2021
£
1,000
-
10,000
352,757
-
363,757
**£ **		 Total
Funds
2020
£
-
15,194
-
17,456
615
33,265
_£ _

In the 2020 financial year all the income was restricted.

In the 2020 accounts the grant for 2 year olds (see Note 3) was wrongly classified as income from donations and voluntary grants but has been corrected in these accounts.

13

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

3. INCOME FROM CHARITABLE ACTIVITIES

Nursery fees
Grants from London Borough of Hackney:
Grant for 2 year olds
30 hours grant
15 hours grant		 Unrestricted
Funds
2021
£
158,374
-
-
-
158,374
**£ **		 Restricted
Funds
2021
£
-
4,374
52,132
84,654
141,160
**£ **		 Total
Funds
2021
£
158,374
4,374
52,132
84,654
299,534
**£ **		 Total
Funds
2020
£
664,430
7,296
65,160
102,606
839,492
_£ _

In the 2020 accounts the grant for 2 year olds was wrongly classified as income from donations and voluntary grants but has been corrected in these accounts.

4.
OTHER INCOME
Rental income
Staff lunches
Insurance claim for loss of fees during closure of Centre
Sundry income
5.
DIRECT CHARITABLE COSTS
Direct wages and salaries
518,271
-
Play activities/outgoings
6,915
-
Catering
8,618
Play equipment and consumables
5,381
Training and courses
3,043
Travelling
566
Cleaning
6,585
Volunteer expenses
262
Recruitment costs
13
549,654
£
Nil
£		 2021
£
-
-
9,914
1,344
11,258
£
2021
£
518,271
6,915
8,618
5,381
3,043
566
6,585
262
13
549,654
**£ **		 2020
£
275
3,097
-
8,418
11,790
_£ _
2020
£
634,251
16,341
25,557
2,368
4,551
2,540
9,020
1,220
889
696,737
_£ _

14

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

6.
SUPPORT AND GOVERNANCE COSTS
Staff costs
97,146
-
Rates and water
246
Insurance
4,045
Light and heat
3,541
Telephone
2,743
Postage and stationery
1,437
Advertising
1,399
Repairs and maintenance
11,750
Cojnsultancy fees
-
Depreciation:
Freehold property
14,588
Fixtures and fittings
5,513
Computer equipment
63
Mortgage interest
7,513
Sundry expenses
1,189
Governance costs:
Independent examination/audit fees
2,300
Legal and professional fees
2,589
7.
STAFF NUMBERS AND COSTS
Wages and salaries
Social security costs
Pension costs		 2021
£
97,146
246
4,045
3,541
2,743
1,437
1,399
11,750
-
14,588
5,513
63
7,513
1,189
2,300
2,589
156,062
£
2021
£
561,176
39,135
15,106
615,417
**£ **		 2020
£
98,253
2,220
3,913
5,644
3,863
2,049
450
13,182
1,207
12,111
2,368
69
9,536
1,990
9,600
6,060
172,515
_£ _
2020
£
668,517
47,477
16,510
732,504
_£ _

During the year the Charity made redundancy payments of £38,843 (2020 - £Nil). These were included, however, in the Proviision for redundancy costs made in 2019/20 and so were included as a cost in that financial year. As shown in Note 11 the total amount provided was £63,262, the excess amount being the cost of paying the contractual notice period.

The average weekly number of employees, calculated as full time equivalents, during the period was:

Charitable activities
Support costs
quivalents, during the period was:		 Number
22
4
26		 Number
22
4
26

No employee received remuneration of more than £60,000.

15

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

8. MANAGEMENT COMMITTEE AND KEY MANAGEMENT PERSONNEL

During the year, one member of the Management Committee, which comprises the charity's key management personnel, received remuneration as below (2020 - the same). No Committee members received reimbursement of expenses (2020 - the same). There were no other related party transactions.

Salary
Social security costs
Pension costs		 2021
£
42,162
4,606
-
46,768
**£ **		 2020
£
47,007
5,296
-
52,303
_£ _

9. TANGIBLE FIXED ASSETS

Freehold
property
£
Cost
At 1 April 2020
680,533
Additions
120,600
At 31 March 2021
801,133
Depreciation
At 1 April 2020
127,944
Charge for the year
14,588
At 31 March 2021
142,532
Net book value
At 31 March 2020
552,589
£
At 31 March 2021
658,601
£
Freehold land included above not depreciated		 Centre
furniture &
equipment
£
73,568
12,706
86,274
64,622
5,513
70,135
8,946
£
16,139
**£ **		 Office
equipment
£
4,415
-
4,415
4,351
63
4,414
64
£
1
**£ **		 Total
£
758,516
133,306
891,822
196,917
20,164
217,081
561,599
_£ _
674,741
**£ **
75,000
**£ **

The property, which was purchased in March 2002, had a covenant placed on the premises by the vendors which ensures that the building stays in community ownership for 25 years.

10. DEBTORS
Due within one year
Fees receivable
Bank interest receivable
Receivable from Coronavirus Job Retention Scheme		 2021
£
3,313
1,275
13,491
18,079
**£ **		 2020
£
6,996
2,013
17,456
26,465
_£ _

16

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

11.
**12. **		 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loan (see Note 12).
Social security and other taxes
Pension contributions payable
Deposits held
Provision for redundancy costs
Accruals
Deferred nursery income (see below)
Deferred nursery income
Balance at 1 April 2020
Amount released to incoming resources
Amount deferred in the year
Balance at 31 March 2021
CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
Bank loan falling due after one year
Add: Amount due in one year (see below and Note 11)
Total amount of loan
Amount falling due after more than 5 years		 2021
£
10,076
8,292
5,349
29,310
-
26,762
13,365
93,154
£
19,250
(19,250)
13,365
13,365
£
2021
£
252,504
10,076
262,580
£
209,288
**£ **		 2020
£
10,695
12,019
7,213
39,783
63,262
31,289
19,250
183,511
_£ _
15,881
(15,881)
19,250
19,250
_£ _
2020
£
262,580
10,695
273,275
_£ _
220,545
_£ _

The bank loan, which is from Barclays Bank, (including the amount due in one year shown in Note 11) is secured by a charge over 76 Shacklewell Lane, Hackney, London E8 2EY. The debt is repayable by monthly instalments, bears interest of 2.71% over the bank's base rate and is due to be fully repaid by October 2040.

An error was found in the calculation of the element of the bank loan due in one year at 31 March 2020 and as a result the figure has been reduced from £18,583 to £10,695 and the element of the loan falling due after one year has been increased accordingly. Similarly the amount due after more than 5 years has been increased from £180,359 to £220,545.

13. RECONCILIATION OF NET INCOME/(EXPENDITURE)
TO NET CASH FLOW FROM OPERATING ACTIVITIES
Adjustments for:
Depreciation charges
Interest received
Interest paid
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash (used in)/provided by operating activities
Net expenditure for the reporting period		 2021
£
(28,223)
20,164
(2,944)
7,513
8,386
(89,738)
(84,842)
£		 2020
£
(44,560)
14,548
(2,083)
9,536
(13,288)
99,590
63,743
_£ _

17

THE BATH HOUSE CHILDREN'S COMMUNITY CENTRE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

14. STATEMENT OF FUNDS
2021
SUMMARY OF FUNDS
Designated fund -
fixed assets
General Fund
Restricted Fund - nursery
running costs		 Brought
Forward
£
285,954
312,812
598,766
-
598,766
**£ **		 Incoming
Resources
£
-
526,333
526,333
151,160
677,493
**£ **		 Resources
Expended
£
-
(554,556)
(554,556)
(151,160)
(705,716)
£		 Transfers
£
126,204
(126,204)
-
-
Nil
£		 Carried
Forward
£
412,158
158,385
570,543
-
570,543
**£ **

The Designated fixed assets fund represents money tied up in the Charity's fixed assets after taking into account that part of the cost financed by the bank loan (see Note 12).

2020
SUMMARY OF FUNDS
Designated Fund -
fixed assets
General Fund
Restricted Fund - nursery
running costs		 Brought
Forward
£
283,060
360,266
643,326
-
643,326
_£ _		 Incoming
Resources
£
-
847,393
847,393
40,561
887,954
_£ _		 Resources
Expended
£
-
(891,953)
(891,953)
(40,561)
(932,514)
£		 Transfers
£
2,894
(2,894)
-
-
Nil
£		 Carried
Forward
£
285,954
312,812
598,766
-
598,766
_£ _

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

At the year-end all assets and liabilities belonged to unrestricted funds (2020 - the same).

18