2021-03-31-accounts - Burmantofts Community Nursery

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Charity Registration No. 1089950

Company Registration No. 03673253 (England and Wales)

Burmantofts Community Nursery

(A Company Limited By Guarantee)

Trustees Annual Report And Unaudited Financial Statements For The Year Ended 31 March 2021

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	N Diamond
	S Percival
	F Dada
	C Rooney
	D Pearlman
	S Williams (appointed 9thJuly 2020
Principal Staf	K Johnson (Nursery Manager)
	S Noble - Steeples (Deputy Nursery Manager)
Secretary	Pinsent Masons
Charity number	1089950
Company number	03673253
Registered ofce	Rigton Drive
	Ebor Gardens
	Leeds
	LS9 7PY
Independent examiner	Laura Masheder FCA DChA
	Garbutt & Elliott LLP
	Leeds
	LS1 2RY
Bankers	Unity Trust Bank plc
	4 Brindleyplace
	Birmingham
	B1 2HB

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) CONTENTS

	Page
Trustees' report	1 - 6
Statement of Trustees' responsibilities	7
Independent examiner's report	8
Statement of fnancial activities	9
Balance sheet	10
Notes to the fnancial statements	11 - 22

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, submit their report and independently examined financial statements for the year ended 31 March 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Reference and administration details

Burmantofts Community Nursery is a company limited by guarantee registered 19 November 1998 (registered number 03673253) and a charity established by Constitution and registered with the Charity Commission on 3 January 2002 (registered charity number 1089950).

Objectives and activities

The charity's objects are:

to advance the education of children and in particular those below compulsory school age by the promotion and provision of day care facilities which stimulate their growth and development through play;
in the interests of social welfare, to promote and provide recreational facilities and other leisure - time activities for children so that their life chances may be improved; and
to facilitate the training and employment of adults through the provision of childcare facilities for their children of a secure and appropriate nature while such training and or employment is taking place.

It has been a difficult year for Burmantofts Community Nursery as we have had to wok through the effects of the coronavirus.

The nursery relies on the hard work and commitment of our professional, caring and responsive staff. Overall, we benefit enormously from having a very supportive and active community of staff,

The aims and differences the charity seeks to make are noted above in the charity's objects which include:

To minimise staff turnover and ensure the best fit between the working patterns of staff and the demand for care.
To review the financial projections as the nursery is 100% reliant on income from fees and grants.
To position the nursery has as a key player within the childcare agenda in Leeds.
To maintain occupancy levels at 90%.

How we will achieve these:

To minimise staff turnover and ensure the best fit between the working patterns of staff and the demand for care.

To offer ongoing training and development opportunities to all staff as identified in appraisals and reviews.
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BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

To review the financial projections as the nursery is 100% reliant on income from fees and grants.

Each Board meeting monitor the actual and budgeted position for the month and year.
The Manager to work to budget controls and make formal requests to the Board for any expenditure that falls out of the budget areas.
To work within a budget which aims to achieve a modest surplus for 2020/2021 in keeping with plans to bolster the reserve and plan for future budgets operating within credit, taking account of known future demands so that the reserve reaches a safe level to enable the charitable objects to be delivered and reduce risks to the organisation’s future viability. The policy on reserves is to hold running costs for 6 months.

To position the nursery has as a key player within the childcare agenda in Leeds.

To maintain contact with the Early Years agenda in Leeds, particularly the local Children’s Centres, Richmond Hill and Harehills. Both centres offer day care, but the Managers support different aspects with Richmond Hill supporting day care between both centres and Harehills supporting family services.
To maintain discussions with the Leeds Children’s Services about business planning and the forward position of the nursery in relation to other settings.
The Manager to continue to attend all local network meetings and contribute to the developing agenda.
To develop new contacts and alliances that can further develop the nursery.

To maintain occupancy levels at 90%.

To maintain publicity about the nursery and sustain its profile in the local area.
To develop a visiting programme which can maintain the nursery in the minds of local agencies who may wish to refer people to the services of the nursery.
To continue with the register of the 2 year old FEEE (Free Early Education Entitlement) status.
To maintain the OFSTED “good” rating – Which was reconfirmed when a visit was held by OFSTED on the 14th March 2016.

Burmantofts Community Nursery encourages volunteers at all levels within the organisation, whilst taking care to ensure that appropriate DBS (Disclosure and Barring Servicing) checks are in place.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

To minimise staff turnover and ensure the best fit between the working patterns of staff and the demand for care.

All staff continued to attend courses to enhance their knowledge and understanding of children and their needs such as safeguarding, First Aid, SEN.
Communications structures are in place for regular board, management and staff meetings including appraisals and reviews, in addition to external links to the local Nursery Network.
We have manged to keep a strong relationship with staff working away from the nursery
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BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

To review the financial projections as the nursery is 100% reliant on income from fees and grants

The Manager has worked within the budget set and where there has been variance the Board has been made aware and mitigated by other budget managements. The nursery has been required to make varying fee increases over the past few years. It was decided that fees would be increased in April 2020 by £1 per session to £25 per session, £50 per day and £250 per week.
Our income is reliant on fee/grant income and we maintain a tight watch on any bad debt position. We continue to work to a tight payment policy and maintain a fee and finance sub group of the Board to review any potential problems with regards to fees not being paid. Our terms and conditions as well as the payment policy have been reviewed so we are now more confident about managing the payment of fees. All parents are to pay either in cash or by standing order.

To position the nursery has as a key player within the childcare agenda in Leeds.

The Manager has continued to attend all local network meetings and Children’s Services meetings contributing to the developing agenda and gaining information to aid forward planning.
The nursery was the subject of an Ofsted inspection in March 2016 and was rated "good". The report was very complimentary and the board and staff were happy with this outcome as a fair representation of the work of the nursery.
The Manager has continued to actively develop new contacts and alliances to help the nursery’s position in the local childcare market. The refreshed board is majoring on ways to ensure the nursery’s position as a stand-alone organisation.

To maintain occupancy levels at 90% .

The nursery has continued to be promoted by word of mouth and active management of the waiting list
How our activities deliver public benefit

Burmantofts Community Nursery, when established, was restricted by its funding sources to provide childcare to parents/carers of children in the Burmantofts area of Leeds (an identified area of social disadvantage). In addition a percentage of parents/carers were to be under 25. Whilst the grants to the nursery have now finished the nursery does still respond to the initial ethos and help parents/carers living within the inner city area of Burmantofts and support those who require childcare support to access education, training or employment. However to maintain sustainability the nursery does increasingly offer care to some parents who do not fully meet the initial ethos.

Our interest is in supporting those parents/carers most in need of childcare and this is evidenced by the high percentage of parents/carers who have their fees paid through some form of state support. The nursery provides a very important service by helping families identify sources of subsidy and support so that they can use the nursery.

Our level of fees are set at a rate which allows us to make a small surplus at the end of the financial year. We set fees paying close attention to what parents/ carers will be able to manage and access through other forms of subsidy and to what we need to do to remain solvent.

We continue to have a strong working relationship with outside professionals such as STARS team, SENIT team, SLT team etc. We feel we have been very successful at creating a positive, stimulating environment, one where we feel the children are able to reach their full potential with staff support and guidance.

When reviewing the aims and objectives of the charity and in planning future activities the trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Plans for the future

Key developing issues which the nursery needs to pay attention to over the coming year are:-

To maintain our 'good' OFSTED rating;
To continue to market the nursery;
To ensure there is a smooth transition as new trustees arrive and long standing trustees step down;
To work with local partners as part of the local community;
To respond to the reformed requirements for Early years Foundation Stage Framework revised in September 2021;
To be prepared to respond as childcare develops.
To recover from the effects of the coronavirus.

The trustees thank everyone who works and cares for the nursery for your determination, energy and belief in what we set out to achieve. We have another complex year ahead of us but it is one in which we shall put the interests of all our children parents/carers and staff at the forefront of the Financial review

The Statement of Financial Activities shows a net deficit for the year of £44,049 (2019 - £7,314). The deficit consists of an unrestricted surplus of £10,542 and a restricted deficit of £54,591 after depreciation charged on the building of £55,737 and nursery equipment of £1,000.

The reserves stand in total at £957,737 at 31 March 2020 (2019 - £1,001,786). The net current assets have increased during the year from £650,205 to £662,893. The financial position of the charity is

The management committee have established a policy whereby unrestricted funds not committed or invested in tangible fixed assets (‘the free reserves’) held by the charity should be approximately 6 months of resources expended, which amounts to £223,000.

The current level of free reserves is £653,899, which is well above the target level outlined above. The trustees nevertheless consider it prudent to consider setting aside additional reserves for future currently unplanned contingencies.

The trustees will review the reserves policy annually. The principal funding source is the income received from fees and grants.

The Trustees has assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

Key risks have been identified as follows:

The loss or reduction of the OFSTED grading of ‘good’. However, this risk is reduced following the reestablishment of a ‘good’ rating in March 2016.

Governmental Legislation change around 2 year old provision which would affect our service considerably. We need to manage this risk in the long term.

Much of our capacity and intake depends on our excellent reputation within the community. As a nursery and a business, we continue to strive to up hold this status within the heart of our ethos. Further marketing of our website and making good contacts with other agencies helps to uphold our

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

The company was incorporated on 19 November 1998 under the Companies Act 1985. The charity is constituted as a company limited by guarantee and is therefore governed by a memorandum and articles of association.

The nursery has a voluntary Board of Trustees with advisers responsible for the governance of the charity. We are fortunate to have had unstinting service from a core number of Board Trustees, some of whom have been with the nursery since its inception in 2002.

The trustees give their time voluntarily. Any expenses reclaimed by trustees from the charity are set out in Note 6 to the financial statements.

The Board addresses training needs as they arise and encourages trustees to attend any courses available to staff. In addition, trustees in key positions provide in depth information to other trustees on key areas of charity management e.g. financial planning, legal matters, health and safety, risk assessment etc.

All the directors of the company are also trustees of the charity, and there are no other trustees. The trustees who served during the period are set out in the legal and administrative information page. In accordance with the articles of association, by order of rotation Debra Pearlman and France Dada will retire by rotation at the next annual general meeting and being eligible, plan to offer themselves for re-election.

The charity is organised so that the trustees meet regularly to manage its affairs. The charity employs a nursery manager together with a number of support staff.

The management committee has conducted its own review of the major risks to which the charity is exposed.

Safeguarding Children policies are in place, as are health and safety policies. Consideration has been given to the risks associated with employment matters and financial risks have been managed by a detailed consideration of future cash flows within the charity. During the risk review the requirements of OFSTED were taken into full account.

In addition to systems being established to minimise the above areas of risk internal risks have

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

The above procedures are under continuous review to ensure they still meet the needs of the charity.

Nursery Manager Karen Johnson has been in the post since October 2004 years and worked for the nursery since October 2001. She has established a strong and committed team around her with Sarah Noble-Steeples continuing as Deputy Manager. The nursery has seen a number of changes within the staff team over the last 12 months:

Kelsey Downey left March 2020 Louise Connor left March 2020

The staff team continues to be highly qualified. The nursery currently employs:-

1 Nursery Manager
1 Deputy
1 Senior Nursery Officer - 1 Nursery Officer (QTS)
9 qualified to level 3 term time Nursery Nurses (1 of which is SENCO) - 1 level 2 qualified term time Nursery Assistant
1 Nursery cook
2 Nursery Cleaners
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BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

The trustees consider the Nursery Manager and the Deputy Nursery Manager as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. The pay of the charity's key management personnel is reviewed annually and increased at the trustees' discretion and taking into consideration the financial situation of the nursery. The remuneration is also bench-marked with nurseries of a similar size and activity.

Small Company Rules

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

The Trustees' report was approved by the Board of Trustees.

.............................. N Diamond

Trustee Dated: .........................

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2020

Trustees and their statutory responsibilities

The trustees responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing those financial statements, the trustees are required to:

Select suitable accounting policies and apply them consistency;
Observe the methods and principles in the Charities SORP;
Make judgements and estimates that are reasonable and prudent;
State whether applicable UK Accounting Standards have been followed, subject to any
material departures disclosed and explained in the financial statements; and
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business for the foreseeable future.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF BURMANTOFTS COMMUNITY NURSERY

I report to the Trustees on my examination of the financial statements of Burmantofts Community Nursery (the charity) for the year ended 31 March 2020.

Responsibilities and basis of report

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

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’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

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:

1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
2 the financial statements do not accord with those records; or
3 the financial statements 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 financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Laura Masheder FCA DChA

Garbutt & Elliott LLP 33 Park Place Leeds LS1 2RY Dated: .........................

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2020

		Unrestrict	Restricted	Total	Total
		funds	funds
		2020	2020	2020	2019
	Note	£	£	£	£
Income from:
Charitable activities
Grants and Contracts	3	260,010	33,366	293,376	281,704
Nursery fees	3	106,510	-	106,510	140,934
Investments		2,022	-	2,022	1,668
Total income		368,542	33,366	401,908	424,306
Expenditure on:
Charitable activities	4	358,000	87,957	445,957	431,620
Net income/(expenditure) for the year/
Net movement in funds		10,542	(54,591)	(44,049)	(7,314)
Fund balances at 1 April 2019		643,357	358,429	1,001,786	1,009,100
Fund balances at 31 March 2020	13	653,899	303,838	957,737	1,001,786

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

A fully detailed Statement of Financial Activities for the year ended 31 March 2019 is shown at note 16.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2020

Notes Fixed assets Tangible assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Income funds Restricted funds 12 Unrestricted funds 13 13	2020 £ £ 294,844 4,360 667,179 671,539 (8,646) 662,893 957,737 303,838 653,899 957,737	2019 £ £ 351,581 5,973 653,023 658,996 (8,791) 650,205 1,001,786 358,429 643,357 1,001,786

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2020.

The Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as li bl h

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on .........................

.............................. N Diamond

Trustee

Company Registration No. 03673253

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

1 Accounting policies

Charity information

The Charity is limited by guarantee and does not have share capital. The liability of members is limited to £1 per member. The charity was incorporated in England and the registered office is Rigton Drive, Ebor Gardens, Leeds, LS9 7PY.

1.1 Accounting convention

The financial statements have been prepared in accordance with the memorandum and articles of association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention to include certain financial instruments at fair value. The principle accounting policies adopted are set out

1.2 Going concern

The trustees have prepared financial projections, taking into consideration the current economic climate and its potential impact on the sources of income and planned expenditure. Whilst the global economy has been significantly impacted by the COVID-19 virus, the charity still has reserves sufficient to meet its immediate requirements and the trustees have adequate contingency plans in the event that income streams are reduced. Consequently the accounts have therefore been prepared on the basis that the charity is a going concern.

1.3 Charitable funds

Unrestricted funds are donations and other income receivable or generated for the objects of the charity without further specified purpose and are available as general funds.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

1.4 Income

All income is included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified reliably.

The value of services provided by volunteers is not included.
Investment income is included when receivable
Income from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by it's performance. Fees receivable are accounted for in the period in which the service is provided.
Where income is received specifically for expenditure in a future accounting period the amount is deferred.
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BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

1 Accounting policies

1.5 Expenditure

Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.

Charitable expenditure comprises those costs incurred by the charity in the deliverance of its activities and services for its beneficiaries. It includes both costs that can be directly allocated to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs incurred in the governance of the charity and its

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Items are only capitalised where the purchase price exceeds £1,000.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Nursery building 4% straight line, 10% straight line for building Nursery equipment 25% straight line Outdoor nursery area 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure)

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not

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BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

1 Accounting policies

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide

1.10Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as

1.11Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

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BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

1 Accounting policies

1.12Debtors

Prepayments and accrued income represent time apportioned expenses or income to be recognised in a future accounting period.

Debtors, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Debtors are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the income and expenditure account.

1.13Creditors 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 due to settle the obligation can be measured or estimated reliably. Creditors, loans and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Creditors are derecognised when, and only when, obligations are discharged, cancelled or they expire.

Amounts recognised as provisions are best estimates of the consideration required to settle the

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

3 Charitable activities

	Grants and	Nursery	Total	Grants and	Nursery	Total
	Contracts	fees	2020	Contracts	fees	2019
	2020	2020		2019	2019
	£	£	£	£	£	£
Fees	260,010	106,510	366,520	247,442	140,934	388,376
Inclusion grants	2,820	-	2,820	6,252	-	6,252
Early Years Pupil Premium	2,600	-	2,600	3,407	-	3,407
Deprivation grants	27,946	-	27,946	24,603	-	24,603
	293,376	106,510	399,886	281,704	140,934	422,638
Analysis by fund
Unrestricted funds	260,010	106,510	366,520	247,442	140,934	388,376
Restricted funds	33,366	-	33,366	34,262	-	34,262
	293,376	106,510	399,886	281,704	140,934	422,638
	Grants and	Nursery	Total	Grants and	Nursery	Total
	Contracts	fees	2020	Contracts	fees	2019
	2020	2020		2019	2019
	£	£	£	£	£	£
Nursery Education Grant (FEEE)	260,010	-	260,010	247,442	-	247,442
LCC: Early Years Pupil Premium	2,600	-	2,600	3,407	-	3,407
LCC: Deprivation Grant	27,946	-	27,946	24,603	-	24,603
LCC: Inclusion Grant	2,820	-	2,820	6,252	-	6,252
Nursery fees	-	106,510	106,510	-	140,934	140,934
	293,376	106,510	399,886	281,704	140,934	422,638

15 -

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

15 -

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

4 Charitable activities

	2020	2019
	£	£
Staf costs	309,104	288,052
Payroll costs	806	874
Staf training	1,815	2,424
Staf uniforms	549	793
Nursery consumables	33,928	33,332
Cleaning and medical supplies	3,053	7,813
Food and milk	9,293	6,332
Sundries	238	626
Hospitality	616	482
	359,402	340,728
Share of support costs (see note 5)	82,941	86,226
Share of governance costs (see note 5)	3,614	4,666
	445,957	431,620
Analysis by fund
Unrestricted funds	358,000	341,319
Restricted funds	87,957	90,301
	445,957	431,620

16 -

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

Support costs
	Support	Governanc	2020	Support	Governanc	2019
	costs	e costs		costs	e costs
			Total		Total	Total
	£	£	£	£	£	£
Depreciation	56,737	-	56,737	60,908	-	60,908
Buildings, gardens,
maintenance and	7,942	-	7,942	5,343	-	5,343
Security	820	-	820	2,832	-	2,832
Postage and ofce
supplies	3,980	-	3,980	3,560	-	3,560
Telephone	1,270	-	1,270	1,257	-	1,257
Insurance	2,289	-	2,289	1,955	-	1,955
Heat and light	4,419	-	4,419	4,831	-	4,831
Rates, water and
waste disposal	5,045	-	5,045	5,042	-	5,042
Accountancy and
Independent
Examination	-	2,580	2,580	-	1,890	1,890
Professional fees	-	1,034	1,034	-	2,776	2,776
Bank charges	439	-	439	498	-	498
	82,941	3,614	86,555	86,226	4,666	90,892
Analysed between
Charitable activities	82,941	3,614	86,555	86,226	4,666	90,892

Governance costs includes payments to the Independent Examiner of £925 (2019: £840) for Independent Examination fees, and £1,225 (2019: £735) for accountancy fees.

6 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

17 -

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

7 Employees

Number of employees

The average monthly number of employees during the year was:

	2020	2019
	Number	Number
	19	16
Employment costs	2020	2019
	£	£
Wages and salaries	286,630	268,479
Social security costs	16,884	16,057
Other pension costs	5,590	3,516
	309,104	288,052

The trustees consider its key management personnel comprise of the nursery manager and the deputy nursery manager. The total employment benefits of the key management personnel were £71,281 (2019: £63,639).

No employee earned £60,000 or more during the year (2019 - no employee).

8 Taxation

The company is a registered charity and is potentially exempt from income and corporation tax to the extent that income and gains are applicable and applied to charitable purposes only.

9 Tangible fixed assets

Nursery building Nursery equipment £ £ Cost At 1 April 2019 707,371 9,759 At 31 March 2020 707,371 9,759 Depreciation and impairment At 1 April 2019 358,790 6,759 Depreciation charged in the year 55,737 1,000 At 31 March 2020 414,527 7,759 Carrying amount At 31 March 2020 292,844 2,000 At 31 March 2019 348,581 3,000	Outdoor nursery Total £ £ 44,276 761,406 44,276 761,406 44,276 409,825 - 56,737 44,276 466,562 - 294,844 - 351,581

18 -

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

18 -

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

10 Debtors Amounts falling due within one Trade debtors Prepayments and accrued income 11 Creditors: amounts falling due within one year Other taxation and social security Other creditors	2020 £ 691 3,669 4,360 2020 £ 3,388 5,258 8,646	2019 £ 2,208 3,765
		5,973
		2019 £ 4,622 4,169
		8,791

12 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

		Movement in funds	Movement in funds
Current year	Balance at	IncomeExpenditur		Balance at
	1 April		e	31 March
	£	£	£	£
Nursery building capital fund	69,999	-	(10,000)	59,999
LCC - 2 Year Old Capital Grant	250,972	-	(41,894)	209,078
LCC - 2 Year Old Start Up Grant (FEEE)	14,009	-	(2,300)	11,709
LCC - Inclusion Grant	3,001	2,820	(2,683)	3,138
LCC - Deprivation Grant	10,467	27,946	(28,963)	9,450
LCC - Early Years Pupil Premium	9,981	2,600	(2,117)	10,464
	358,429	33,366	(87,957)	303,838

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BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

12 Restricted funds

Purpose of restricted funds:

Nursery Building Capital Fund: The Nursery building capital fund represents funding received from SRB3 and from Yorkshire Forward less depreciation charged to date. The funding was received to construct a nursery at Burmantofts. Depreciation is charged to write off the cost of the building over the 25 year period of the lease of the land.

Leeds CC – 2 Year Old Capital Grant: The grant was given to fund the building extension to the nursery building in order to increase the capacity of the nursery. The expenditure has been capitalised and is being depreciated over the remaining life of the lease.

Leeds CC – Deprivation Grant: This grant is given to improve the outcomes for children living in deprived areas.

Leeds CC – Inclusion Grant: This grant was given to create better outcomes for two particular children with additional needs.

Leeds CC – 2 Year Old Start Up Grant 13/14 and 14/15: The 13/14 grant was given for the creation of 14 2 Year Old places in the nursery as part of the National Achieving 2 Year Old Campaign. The 14/15 grant was given for the creation of 63 2 Year Old places in the nursery as part of the National Achieving 2 Year Old Campaign. The funding enabled the nursery to deliver additional FEEE (Free Early Education Entitlement) places in areas of highest need.

Leeds CC – Early Years Pupil Premium: This grant is additional funding for Early Years settings to improve the education provided for disadvantaged 3 and 4 year olds.

		Movement in funds	Movement in funds
Prior year	Balance at	Income Expenditu		Balance at
	1 April		re	31 March
	£	£	£	£
Nursery building capital fund	79,999	-	(10,000)	69,999
LCC - 2 Year Old Capital Grant	292,866	-	(41,894)	250,972
LCC - 2 Year Old Start Up Grant (FEEE)	16,309	-	(2,300)	14,009
LCC - Inclusion Grant	-	6,252	(3,251)	3,001
LCC - Deprivation Grant	16,179	24,603	(30,315)	10,467
LCC - Early Years Pupil Premium	9,115	3,407	(2,541)	9,981
	414,468	34,262	(90,301)	358,429

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BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

Analysis of net assets between funds
	Unrestrict	Restricted	Total
	ed funds	funds
	2020	2020	2020
	£	£	£
Fund balances at 31 March are represented by:
Tangible assets	-	294,844	294,844
Current assets/(liabilities)	653,899	8,994	662,893
	653,899	303,838	957,737
Analysis of net assets between funds
	Unrestrict	Restricted	Total
	ed funds	funds
	2019	2019	2019
	£	£	£
Fund balances at 31 March are represented by:
Tangible assets	-	351,581	351,581
Current assets/(liabilities)	643,357	6,848	650,205
	643,357	358,429	1,001,786

14 Operating lease commitments

At the reporting end date the charity had total commitments under non-cancellable operating leases as follows:

Within one year Between two and fve years	2020 £ 2,528 7,586 10,114	2019 £ 2,528 10,746
		13,274

15 Related party transactions

There were no disclosable related party transactions during this or the previous financial year.

21 -

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

16 Comparative Statement of Financial Activities

	Unrestricte	Restricted	Total
	funds	funds	2019
	£	£	£
Income from:
Grants and Contracts	247,442	34,262	281,704
Nursery fees	140,934	-	140,934
Investments	1,668	-	1,668
Total income	390,044	34,262	424,306
Expenditure on:
Charitable activities	341,319	90,301	431,620
Total expenditure	341,319	90,301	431,620
Net income/(expenditure) for the year/
Net movement in funds	48,725	(56,039)	(7,314)
Fund balances at 1 April 2018	594,632	414,468	1,009,100
Fund balances at 31 March 2019	643,357	358,429	1,001,786

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