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2022-03-31-accounts

JAL//BUR002/ID2523372

The Board of Trustees Burmantofts Community Nursery Rigton Drive Ebor Gardens Leeds LS9 7PY

Dear Trustees

The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your independent examination of the charity’s financial statements for the year ended 31 March 2022. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief.

General

  1. You acknowledge that the work performed by ourselves is substantially less in scope than an audit performed in accordance with International Standards on Auditing (UK) and that we do not express an audit opinion.

  2. You confirm that the charitable company qualifies as small in accordance with the conditions set out in chapter 1 of part 15 of the Companies Act 2006.

  3. You confirm that the charity was entitled to exemption under section 144 of the Charities Act 2011 the requirement to have its financial statements for the financial year ended 31 March 2022 audited.

  4. You confirm that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records.

  5. You confirm that all the accounting records have been made available to you for the purpose of your independent examination. You have provided us with unrestricted access to all appropriate persons within the charity, and with all other records and related information requested, including minutes of all management and trustee meetings and correspondence with The Charity Commission.

Assets and liabilities

  1. You confirm that the charity has satisfactory title to all assets and there are no liens or encumbrances on the charity’s assets, except for those that are disclosed in the notes to the financial statements.

  2. You confirm that all actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate.

  3. You have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.

Accounting estimates

  1. Significant assumptions used by you in making accounting estimates, including those measured at fair value, are reasonable.

Loans and arrangements

  1. The charitable company has not granted any advances or credits to, or made guarantees on behalf of, directors other than those disclosed in the financial statements.

Legal claims

  1. You have disclosed to us all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for, and disclosed in, the financial statements.

Laws and regulations

  1. You have disclosed to us all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements.

Related parties

  1. Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. You have disclosed to us all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with legislative and accounting standards requirements.

Subsequent events

  1. All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed.

Going concern

  1. You believe that the charity's financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity's needs. You have considered a period of twelve months from the date of approval of the financial statements. You believe that no further disclosures relating to the charity's ability to continue as a going concern need to be made in the financial statements.

Grants and donations

  1. All grants, donations and other income, the receipt of which is subject to specific terms or conditions, have been notified to us. There have been no breaches of terms or conditions in the application of such income.

Financial Statements

  1. You confirm that we have agreed with you the adjusted misstatement on the attached schedule (appendix 1) which has been adjusted for in arriving at the financial statements for the year to 31 March 2022.

Yours faithfully

Azets Audit Services Limited

Azets Audit Services Limited

We confirm that the above representations are made on the basis of enquiries of trustees, management and staff with relevant knowledge and experience and, where appropriate, of inspection of supporting documentation, sufficient to satisfy ourselves that we can properly make each of the above representations to you.

We confirm that we have read and understood the contents of this letter and agree that it accurately reflects the representations made to you by the trustees during the course of the independent examination.

Neil Diamond ................................................... Mr N Diamond - Chair

25/11/2022 ................................................... Date

Appendix 1 – Adjusted misstatements

Dr Cr
1 Being to amend wages, Ers NI and Ers Pension
4000 · Grants - Revenue:4002 · Inclusion Grant 7857.39 N
6000 · Staff wages:6010 · Staff wages - gross 9953.39 N
6000 · Staff wages:6020 · Staff wages - Ers NI 8724.47 N
6000 · Staff wages:6030 · Staff wages - Pen Ers 81.59 N
6603 · Incl Grant - Staff Wages 6546.88 N
2 To adjust for misposted accrued income
1210 · Accounts receivable 6,886.66 N
1220 · Fees receivable 6,886.66 N
4200 · Fees:4214 · Fees - Jungle 13,773.32 N
3 To tidy up accruals
2100 · Accruals 1,840.00 Y
6200 · Premises:6210 · Gas and Electric 500.00 N
6300 · Other:6360 · Subscriptions & legal fees 8 Y
6300 · Other:6370 · Prof fees - audit/accountancy 276 Y
6602 · Incl Grant - Nursery Consumable 2,056.00 Y
4 To post accrued income
1220 · Fees receivable 1,327.00 Y
4200 · Fees:4214 · Fees - Jungle 1,327.00 Y

4/ AZETS 33 Park Pla¢0 Leeds LS12RY +44 (OM13 2T3 9600 azet5.co.uk Appendix 2- Unadjusted misstatements None W8 are an ￿¢￿ntI[yJ. 8w¥K4swcwth•l digrtdtywd at ycuthcf. eothrtlno l T&x l Audlt l Advlw IT•ehnoh)gy

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 2022

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 Principal Staff K Johnson (Nursery Manager) S Noble - Steeples (Deputy Nursery Manager) Secretary Pinsent Masons Charity number 1089950 Company number 03673253 Registered office Rigton Drive Ebor Gardens Leeds LS9 7PY Independent examiner Jessica Lawrence FCA CTA Azets Audit Services Limited 33 Park Place 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 financial activities 9
Balance sheet 10
Notes to the financial statements 11 - 23

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The Trustees who are also Directors for the purposes of company law, are pleased to present their annual report together with the independently examined financial statements of the charity for the year ended 31 March 2022, which are also prepared to meet the requirements for a directors' report and Financial Statements for Companies Act purposes.

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 "A ccounting 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 ).

The Legal and Administrative Information page forms part of this trustees' report.

Objectives and activities

The charity's objects are:

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, parents/carers, volunteers and service users.

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

How we will achieve these:

To minimise staff turnover in a time of major change within childcare settings in Leeds and nationally, and where change occurs to ensure the best fit between the working patterns of staff and the demand for care.

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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

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

To maintain occupancy levels at 90%.

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 Board members are all volunteers and generously commit their time and attention to the governance of the charity.

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.

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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

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

To maintain occupancy levels at 90% .

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 2022

Plans for the future

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

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 developing agenda in Leeds.

Financial review

The Statement of Financial Activities shows a net deficit for the year of £33,146 (202 1 - £ 60,475 ) . The deficit consists of an unrestricted surplus of £ 17,872 and a restricted deficit of £51,018 after depreciation charged on the building of £55,737 a nd nursery equipment of £1,00 0 .

The reserves stand in total at £ 8 64,116 at 31 March 2022 (202 1 - £ 897,262 ) . The net current assets have increased during the year from £659,155 to £ 6 82,745. The financial position of the charity is satisfactory.

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 £ 2 23 ,000 .

The current level of free reserves is £6 68,850 , 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 have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

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 2022.

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 reputation.

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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 Stephen Williams and Sarah Percival 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 been minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charity.

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:

Danielle Waceba left July 2021 Donna Smith left July 2021 Kylie Wainwright left July 2021

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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

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' r eport was approved by the Board of Trustees.

Neil Diamond

.............................. N Diamond Trustee 25/11/2022 Dated: .........................

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2022

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:

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 2022.

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 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:

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.

Jessica Lawrence

Jessica Lawrence FCA CTA

Azets Audit Services Limited 33 Park Place Leeds LS1 2RY

29/11/2022 Dated: .........................

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

FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Charitable activities
- Grants and Contracts
3
208,632
37,812
- Nursery fees
3
94,719
-
Investments
368
-
Total income
303,719
37,812
Expenditure on:
Charitable activities
4
285,847
88,830
Net income/(expenditure) for the year/
Net movement in funds
17,872
(51,018)
Fund balances at 1 April 2021
650,978
246,284
Fund balances at 31 March 2022
13
668,850
195,266		 Total
2022
£
246,444
94,719
368
341,531
374,677
(33,146)
897,262
864,116		 Total
2021
£
308,105
42,630
277
351,012
411,487
(60,475)
957,737
897,262

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 202 1 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) BALANCE SHEET

AS AT 31 MARCH 2022

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		 2022
£
17,027
676,065
693,092
(10,347)		 £
181,371
682,745
864,116
195,266
668,850
864,116		 2021
£
6,968
660,854
667,822
(8,667)		 £
238,107
659,155
897,262
246,284
650,978
897,262

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 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements 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.

25/11/2022

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

Neil Diamond

..............................

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 2022

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 a mounts 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 below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.5 Expenditure

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

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 extension 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 the statement of financial activities .

1.7 Cash and cash equivalents

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

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 simultaneously.

Basic financial assets

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

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

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 income/(expenditure) for the year.

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 p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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 termination benefits.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.11 Leases

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.

1.12 Debtors

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.

1.13 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 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 present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

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.

The trustees are of the opinion that there are no material estimates or judgements.

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

FOR THE YEAR ENDED 31 MARCH 2022

3 Charitable activities

- Grants and
Contracts
- Nursery fees
2022
2022
£
£
Fees
208,632
94,719
Inclusion grants
20,771
-
Early Years Pupil Premium
3,807
-
Deprivation grants
13,234
-
246,444
94,719
Analysis by fund
Unrestricted funds
208,632
94,719
Restricted funds
37,812
-
246,444
94,719
- Grants and
Contracts
- Nursery fees
2022
2022
£
£
Nursery Education Grant (FEEE)
208,632
-
LCC: Early Years Pupil Premium
3,807
-
LCC: Deprivation Grant
13,234
-
LCC: Inclusion Grant
20,771
-
Nursery fees
-
94,719
246,444
94,719		 Total
2022
- Grants and
Contracts
- Nursery fees
2021
2021
£
£
£
303,351
237,968
42,630
20,771
51,218
-
3,807
5,176
-
13,234
13,743
-
341,163
308,105
42,630
303,351
237,968
42,630
37,812
70,137
-
341,163
308,105
42,630
Total
2022
- Grants and
Contracts
- Nursery fees
2021
2021
£
£
£
208,632
237,968
-
3,807
5,176
-
13,234
13,743
-
20,771
57,611
-
94,719
-
36,237
341,163
314,498
36,237		 Total
2021
£
280,598
51,218
5,176
13,743
350,735
280,598
70,137
350,735
Total
2021
£
237,968
5,176
13,743
57,611
36,237
350,735

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

4 Charitable activities

Staff costs
Payroll costs
Staff training
Staff uniforms
Nursery consumables
Cleaning and medical supplies
Food and milk
Sundries
H ospitality
Share of support costs (see note 5)
Share of governance costs (see note 5)
Analysis by fund
Unrestricted funds
Restricted funds		 2022
£
251,112
931
1,621
-
26,064
7,328
2,718
225
571
290,570
79,907
4,200
374,677
285,847
88,830
374,677		 2021
£
302,860
806
445
134
16,411
2,681
2,248
267
100
325,952
81,957
3,578
411,487
327,529
83,958
411,487

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

5 Support costs

Support
costs
Governance
costs
£
£
Depreciation
56,737
-
Buildings, gardens,
maintenance and repairs
4,182
-
Security
1,492
-
Postage and office
supplies
3,698
-
Telephone
1,091
-
Insurance
2,779
-
Heat and light
4,014
-
Rates, water and waste
disposal
4,283
-
Accountancy and
Independent
Examination
-
2,976
Professional fees
-
1,224
Bank charges
1,631
-
79,907
4,200		 2022
Support
costs
Governance
costs
Total
Total
£
£
£
56,737
56,737
-
4,182
11,644
-
1,492
844
-
3,698
2,663
-
1,091
1,461
-
2,779
2,529
-
4,014
3,323
-
4,283
2,449
-
2,976
-
2,600
1,224
-
978
1,631
307
-
84,107
81,957
3,578		 2021
Total
£
56,737
11,644
844
2,663
1,461
2,529
3,323
2,449
2,600
978
307
85,535

Governance costs includes payments to the Independent Examiner of £1,284 (2021 : £970) for Independent Examination fees , and £1, 692 ( 2021 : £ 1,2 80 ) 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 current or prior year.

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

7 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
Number
15
2022
£
242,953
3,233
4,926
251,112		 2021
Number
18
2021
£
286,189
11,171
5,500
302,860

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 £ 73,209 (2020: £ 72,887 ).

No employee earned £60,000 or more during the year (202 1 - 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

Cost
At 1 April 2021
At 31 March 2022
Depreciation and impairment
At 1 April 2021
Depreciation charged in the year
At 31 March 2022
Carrying amount
At 31 March 2022
At 31 March 2021		 Nursery
building
Nursery
equipment
Outdoor
nursery area
£
£
£
707,371
9,759
44,277
707,371
9,759
44,277
470,264
8,757
44,277
55,738
1,000
-
526,002
9,757
44,277
181,369
2
-
237,107
1,000
-		 Total
£
761,407
761,407
523,298
56,738
580,036
181,371
238,107

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

10
Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
11
Creditors: amounts falling due within one year
Other taxation and social security
Other creditors		 2022
£
6,689
10,338
17,027
2022
£
2,459
7,888
10,347		 2021
£
3,750
3,218
6,968
2021
£
3,268
5,399
8,667

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

FOR THE YEAR ENDED 31 MARCH 2022

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:

Balance at
1 April 2020

£
Nursery building capital fund
59,999
LCC - 2 Year Old Capital Grant
209,078
LCC - 2 Year Old Start Up Grant (FEEE)
11,709
LCC - Inclusion Grant
3,138
LCC - Deprivation Grant
9,450
LCC - Early Years Pupil Premium
10,464
303,838		 Movement in funds
Incoming
resources
Resources
expended
£
£
-
(10,000)
-
(41,894)
-
(2,300)
51,218
(17,837)
13,743
(4,834)
5,176
(7,093)
70,137
(83,958)		 Movement in funds
Transfers
Balance at
1 April 2021
Incoming
resources
Resources
expended
Balance at
31 March 2022
£
£
£
£
£
-
49,999
-
(10,000)
39,999
-
167,184
-
(41,894)
125,290
-
9,409
-
(2,300)
7,109
(38,557)
(2,038)
20,770
(16,667)
2,065
-
18,359
13,234
(14,519)
17,074
(5,176)
3,371
3,808
(3,450)
3,729
(43,733)
246,284
37,813
(88,830)
195,266

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

FOR THE YEAR ENDED 31 MARCH 2022

12 Restricted funds

(Continued)

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.

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

13
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 31 March are represented by:
Tangible assets
-
181,371
Net current assets
668,850
13,895
668,850
195,266		 Total
2022
£
181,371
682,745
864,116

Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31 March are represented by:
Tangible assets
-
238,107
Net current assets
650,978
8,177
650,978
246,284		 Total
2021
£
238,107
659,155
897,262

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 five years		 2022
£
2,529
2,528
5,057		 2021
£
2,528
5,057
7,585

15 Related party transactions

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

BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

16 Comparative Statement of Financial Activities

Unrestricted
Restricted
funds
funds
£
£
Income from:
- Grants and Contracts
237,968
70,137
- Nursery fees
42,630
-
Investments
277
-
Total income
280,875
70,137
Expenditure on:
Charitable activities
327,529
83,958
Total expenditure
327,529
83,958
Net movement in funds
(2,921)
(57,554)
Fund balances at 1 April 2020
653,899
303,838
Fund balances at 31 March 2021
650,978
246,284		 Total
2021
£
308,105
42,630
277
351,012
411,487
411,487
(60,475)
957,737
897,262