Charity Registration No. 1089950 Company Reglstratlon No. 03673253 IEngland and Wales) Burmantofts Community Nursery (A Company Limited By Guarantee) Trustees Annual Report And Unaudited Financial Statements For The Year Ended 31 March 2023 BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION Trustses N Diamond S Percival F Dada C Rooney D Pearlman S Williams Principal Staff K Johnson (Nursery Manager) S Noble- Sleeples (Deputy Nursery Manager) Secretary Pinsenl Masons Charty number 1089950 Company numbgr 03673253 Regl$ter&d offlce Rigton Drive Ebor Gardens Leeds LS9 7PY Indepgndent examlngr Jessica Lawrence FCA CTA AzetsAudil Services Limited 33 Park Place Leeds LS1 2RY Bankers Unty Trust Bank plc 4 Brindleyplace Birmingham B12HB BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) CONTENTS Page Trustees, report Stslemenl of Trustees, responsibilities Independent examinerfs report Statement of financial activities Balance sheet 10 Notes lo the financial statements BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2023 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 slalements of the charity for the year ended 31 March 2023, which are also prepared to meet the requirements for a directors. report and Financial Statements for Companies Act purposes. The financial slalements have been prepared in accordan￿ wth the accounting policies set out in note 1 to the financial slalemenls and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and Accounting and Reporting by Charities". Statement ol Recommended Practice applicable to ¢harilies preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective 1 January 20191. Reference and administration details Burmantofts Community Nursery is a company limited by guarantee registered 19 November 1998 (registered number 036732531 and a charity established by Constitution and registered with the Charity Commission on 3 January 2002 Iregislered charity number 10899501. The Legal and Administrative Information page forms part of this Iruslees, report. Objective5 and activities The ¢harily's objects are.. to advan￿ 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, lo promote and provide recreational facilities and other leisure time activities for children so that their life Chances may be improved," and lo facililale 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. The nLJrsery 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, parenlslcarers, volunteers and service users. The aims and differences the charity seeks lo make are noted above in the charty's objects which include.. To minimise staff turnover and ensure the best fil be￿een the working patterns of staff and the demand for care. To review the financial projections as the nursery is 1000/0 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 al 90Q/o. How we will achieve these.. To minimise staff turnover and ensure the best rit between the working patterns of staff and the demand for care. To offer ongoing training and development opportuni(ies lo all staff as identified in appr8is8ls and reviews. To ensure that effective communication systems are in operation. To continually review the remuneration the nursery Can offer to staff. BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 To review the finanaal projections as the nursery is 100 /0 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 worf( within a budget which aims to a¢hieve a modest surplus for 202212023 in keeping with plans to bolster the reserve and plan for future budgets operating within credit. taking account of known fLJture demands so that the reserve reaches a safe level to enable the charitable objects to be delivered and redu￿ risks to the organisalion's future viability. The policy on reserves is lo hold running Costs for 6 months. To position the nursery as a key player within the childcare agenda in Leeds. To maintain contact wth the Earfy Years agenda in Leeds, particularfy Harehills Children's Cenlres. To maintain discussions wth the Leed5 Children's Services about business planning and the forward position of the nursery in relation lo other sellings. The manager lo continue lo attend all local network meetings and contribute lo the developing agenda. To develop new Contacts and alliances that can further develop the nursery. To maintain occupancy levels at 90Qkn. To maintain publicity about the nursery and sustain ils profile in the local area. To develop a visiting programme which can maintain the nursery In the minds of local agencies who may wish lo refer people lo the services of the nursery. To continue with the register of the 2 year old FEEE IFree Early Education Enlidemenll stslus. To maintain the OFSTED "good. rating - VW)id) was reconfimied when a visit was held by OFSTED on the 18th March 2022. 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 lime and attention lo the governance of the charity. The Trustees have paid due regard lo 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 fil b&￿en the working patterns of staff and the demand for care. All staff continued to attend courses to enhance their kno¥Medge and understsnding of children and their needs such as safeguarding, First Aid, SEN. Communication structures are in place for regular board, management and staff meetings including appraisals and reviews. BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 To review the finanaal projections as the nursery is 100 /0 reliant on income from fees and grants. The Manager has worked within the budget sel and where there has been variance the Board has been made aware and mitigated by other budget managements. The nursery has been required lo make varying fee increases over the past few years. To a¢knO￿edge the cost of living the board agreed not to rise fee$ 2021-22. Our income is reliant on feelgrant 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 temis 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 stsnding order. To position the nursery as a key player within the childcare agenda in Leeds. The Manager has continued lo attend all local nelwork meetings and Children's Setvices meetings ntributing lo the developing agenda and gaining infomiation to aid fonNard planning. The nursery was the subject of an Ofsted inspection in March 2022 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 lo actively develop new contacts and alliances lo help the nursery's position in the local childcare matkel. The board is majoring on ways to ensurè the nursery's position as a sland- alone organisation. To maintain occupancy levels al 90% . The nursery has continued lo be promoted by word of mouth and active management of the waf(ing list. The nursery reconfirmed the OFSTED rating 'good' in March 2022, which enabled the nursery to conbnue to offei FEEE for both 2 Year old and 314 Year olds. How our activities deliver public benefit Burmanlofts Community Nursery, when established, was restricted by ils funding sources lo provide childcare to parent51carers of children in the Bumanlofts area of Leeds lan identified area of social di58dvanlagel. In addition a percentage of parenlslcarers were lo be under 25. IM)ilsl the grants lo the nursery have now finished the nursery does still respond lo the infcial ethos and help parenlslcarers living within the inner city area of Burmanlofts 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 parenlslcarers most in need of childcare and this is evidenced by the high percentage of parenlslcarers who have their fees paid through some form of slate support. The nursery provides 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 rale which gives us a financial deficit for the year, the board understand this and can currently absorbed the loss wthin the reserves. We set fees paying dose atlention to what parentsl 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 crealing a positive. stimulating environment, one where we feel the children are able to reach their full potential with staff support and guidance. Vvhen 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 2023 Plans for the future Key developing issues which the nursery needs lo pay attention lo 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 wth local partners as part of the local community., To respond lo the reformed requirements for Early years Foundation Stage Framework revised in September 2021., To be prepared lo respond as chIldca￿ develops", The trustees thank everyone who works and cares for the nursery for your delerminalion, energy and belief in what we sel out lo achieve. We have another complex year ahead of us bul il is one in which we shall put the interests of all our children. parentslcarers and staff at the forefront of the developing agenda in Leeds. Flnanclal revlew The Statement of Financial Activities shows a net deficit for the year of £64,374 12022 £33,1461. The deficit consists of an unreslricled deficit of £26,425 and a restricted deficit of £37,949 after depreciation charged on the building of £55,737. The reserves sland in lolal al £799,742 al 31 March 2023 12022 £864,116). The nel current assets have decreased during the year from £682,745 to £674,110. The financial position of the charity is satisfactory. The management committee have established a policy whereby unrestricted funds not committed or invested in tsngible fixed assets I'the free reserves'l held by the charity should be approximately 6 months of resources expended, which amounts lo £206,000. The current level of free reserves is £642.425. which is well above the tsrget 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 Tru51ees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure lo 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 re- establishment of a 'good' rating in March 2022. Governmental Legislation change around 2 year old provision which would affect our seNice 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 lo strive lo up hold this slalus within the heart of our ethos. Further marketing of our website and making good contacts wf(h other agencies helps lo uphold our reputation. BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 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 f(s inception in 2002. The trustees give their time voluntsrily. Any expenses reclaimed by Iruslees from the charity are sel out in Note 6 to the financial slalements. The Board addresses training needs as they arise and encourages trustees lo attend any courses available to staff. In addf(ion trustees in key positions provide in depth information to other trustees on key areas of charity management e.g. finanaal 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 articlès of association, by ordei of rolalion Stephen Williams and Sarah Percival will retire by rolalion at the next annual general meeting and being eligible, plan to offer themselves for ￿-&leCtIOn. The charity is organised so that the trustees meet regularfy lo manage ils 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 lo which the charity is exposed. Safeguarding Children policies are in place, as are health and safety policies. Consideration has been given to thè risks associated with employment mallers 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 tsken Into full account. In addition lo systems being estsblished to minimise the above areas of risk, intemal risks have been minimised by the implementation of procedures for authorisation of all transactions and projects and lo ensure consistent quality of delivery for all operational aspects of the charity. The above procedLJres 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 estsblished a strong and committed team around her wth Sarah Noble-steeples continuing as Deputy Manager. The nursery has seen a number of changes within the 51aff team over the last 12 months.. Lydia Shearon- Joined the team in October 2022 Kirsly Dixon- Joined the team in November 2022 BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 The staff team continues lo be highly qualified. The nursery currently employs:_ 1 Nursery Manager 1 Deputy 1 Nursery Officer 1 Nursery Officer IQTSI 9 qualified to level 3 term time Nursery Nurses 1 qualified to level 2 temi time NurseryAssistant 1 Nursery cook 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 lo day basis. The pay of the charity's key management personnel is ￿vieWed annually and increased at the Iruslees, 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 20C6. The Trustees, ￿port was approved by the Board of Trustees. N Diamond Trustee Dated.. 2710812023 BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023 Trustees and their statutory responsibilities The Iruslees responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and UKAccounting Stsndards (UK Generally Accepted Accounting Practice). Company law requires the trustees lo 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 aecounling policies and apply them consistency., Observe th& methods and principles in the Charities SORP", Make judgements and eslimales that are reasonable and prudent", Slate whether applicable UKAccounting Stsndards 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 il is inappropriate lo presume that the charitable company wll continue in business for the foreseeable future. The Iruslees are responsible for keeping proper accounting records that disdose wlh reasonable accuracy at any time the financial position of the charitable company and ènable them lo ensure that the financial s18lemenls comply with the Companies Act 2006. Thèy are also responsiblè for safeguarding the assets of the charitsble company and hence for tsking 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 Burmanlofts Community Nursery Ilhe charilyl for the year ended 31 March 2023. Responsibilities and basis of report As the Trustees of the charity land also ils directors for the purposes of company lawl you are responsible for the preparation of the financial stslemenls in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the ¢harily 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 14515llbl of the 2011 Act. Independent examinerfs ststement Since the charity's gr055 income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confim that l am qualified lo undertakè the examination because l am a member of the Inslilule of Chartered Accounlanls 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 wfth the examination giving me cause lo believe that in any material respect". accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act., or the financial slalements do not accord with those records., or the financial stslemenls do not comply with the ac¢ounling requirements of section 396 of the 2006 Act other than any requirement that the a￿O￿nIS give a true and fair view which is not a matter wnsidered as part of an independent examination., or the financial 5talemenls have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. I have no concerns and have come across no other matters in connection with the examination lo which attention should be drawn in this report in order lo enable a proper understanding of the financial slalements lo be reached. 6SS16a Lawr6n66 Jessica Lawrence FCA CTA Azels Audit Services Limited 33 Park Place Leeds LS1 2RY 2910812023 BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 Unrestricted Restricted fund$ fund$ 2023 2023 Total Total 2023 2022 Notes Income from: Charitable activities Grants and Contracts Nursery fees Investments 198,048 75,615 11,442 62,497 260,545 75,615 11,442 246,444 94,719 368 Total income 285,105 62,497 347,602 341,531 Ex enditure on: Charitable activities 311,530 100,446 411,976 374,677 Net expendlture for the yearl Net movement in funds 126,4251 137,9491 164,3741 133,1461 Fund balances at 1 April 2022 668,850 195,266 864,116 897,282 Fund balances at 31 March 2023 15 642,425 157.317 799,742 864,118 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilies. A fijlly detailed Statement of Financial Activities for the year ended 31 March 2022 is shown al note 16. The statement of financial activities also complies wlh the requirements for an income and expenditure account under the Companies Act 2006. BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET ASAT31 MARCH 2023 2023 2022 as restated Notes Fixed assets Tangible assets 125,632 181,371 Current assets Debtors Investments Cash at bank and in hand 10 11 12,827 595,556 87,782 17,027 584,172 91,893 696,165 693,092 Credltots: amounts falllng due wlthln one year 12 122,0551 110,3471 Net current assets 674,110 682,745 Total assets less current liabilities 799,742 864,116 Ineome funds Reslri¢ted ftjnds Unrestricted funds 13 157,317 642,425 195,266 668,850 799.742 864.116 The company is entitled lo the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023. The diredors acknoTMedge their responsibilities for complying with the requirements of the Companies Act 2006 with respect lo 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 lo companies subject to the small companies regime. The financial statements were approved by the Trustees on . 2710812023 N Diamond Trustee Company Registration No. 03673253 10- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies Charity inforniation 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 Riglon Drive, Ebor Gardens, Leeds, LS9 TPY. 1.1 Accountlng conventlon The financial statements have been prepared in accordance wlh the memorandum and artides of assoaalion, the Companies Act 2006 and 'Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wf(h the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective from 1 January 20191. The charity is a Public Benefit Enlily as defined by FRS 102. The charity has tsken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Stslemenl of Cash Flows. The financial slalements are prepared in slet1ing, which is the functional currency of the charity. Monetsry amounts in these financial ststemenls are rounded to the nearest £1. The financial stslemenls have been prepared under the historical cost convention lo 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 ¢harity has adequate resOur￿S 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 Charltable 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. Reslricled funds are lo be used for specific purwses as laid down by the donor. Expenditure which meets these criteria is charged lo the fund. 1.4 Income l income is induded in the statement of financial activrfties when the charity is enlilled 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 lo 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. here income is received specifically for expenditure in a future accounting period the amount is deferred. BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 Accountlng pollcles Icontlnuedl 1.5 Expendltu 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 ils activities and services for ils beneficiaries.11 Indudes both costs that can be directly allocated lo 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 ils assets and are primarily associated with constitutional and statutory requirements. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured al cost or valuation, nel of depreciation and any impaimient losses. Items are only capilalised where the purchase price exceeds £1,000. Depreaalion is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Nursery building Nursery equipment Outdoor nursery area 40k slraighl line, 100/0 slraighl line for building extension 250A straight line 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 stslemenl of financial activities. 1.7 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held al ¢811 wth banks, other short-temi liquid investments wlh original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown thin 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 finanaal instruments. Financial instruments are recognised in the charity's balan￿ sheet when the charity becomes party to the conlraclual provisions of the Inslrumenl. Financial assets and liabilities are offset. wf(h the net amounts presented in the financial stslemenls, when there is a legally enfor￿able right lo sel off the recognised amounts and there is an intention lo settle on a nel basis or to realise the asset and sellle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction pri￿ including transaction costs and are subsequently carried at amortised cost using the effective Interest method unless the arrangement constilules a financing transaction, where the transaction is measured at the present value of the future retsipls discounted al a market rale of interest. Financial assets classified as receivable within one year are not amortised. 12- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 Accountlng pollcles Icontlnuedl Impairment of financial assets Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment al 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 eslimaled cash flows discounted at the asset's original effective interest rate. The impaimient loss is recognised in nel incomellexpenditurel for the year. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the Impaimient is reversed. The reversal is such that the current carrying amount does not exceed ￿al the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised In net incomellexpendilurel for the year. Derecognition of financial assets Financial assets are derecognised only when the contractual rights lo the cash flows from the asset expire or are settled, or when the Charity transfers the financial asset and subslanlially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained bul ¢onlrol of the asset has transferred lo another party that is able lo sell the asset in its entirely to an unrelated third paty. Basic financial liabilities Basic finanaal liabilities, including creditors and bank loans are initially recognised al transaction price unless the arrangement constitutes a financing Iransaclion, where the debt instrument is measured al the present value of the future payments discounted at a market rale of interest. Financial Iiabililies dassified as payable thin one year are not amort15ed. Debt instruments are subsequenuy carried al amortised cost, using the effective interest rale 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-currenl liabilities. Trade creditors are recognised initially at transaction price and subsequenuy measured al amortised c05t using the effective interest method. Other financial IITabilitses Financial liabilities and equity instruments are classified according lo 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 ils 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. Temiination benefits are recognised immediately as an expense when the charity is demonstrably committed lo lerminale the employment of an employee or to provide lerminalion benefits. 1.10 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 13- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 Accountlng pollcles Icontlnuedl 1.11 Leases Rentals payable under operating leases, induding any lease incentives received, are charged as an expense on a slraighl line basis over the term of the relevant lease. 1.12 Debtors Prepayments and accrued income represent lime apportioned expenses or income lo be recognised in a future accounting period. Debtors, other than those held al fair value through profil and loss, are assessed for indicators of impairment al each reporting end dale. Debtors are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognitlon of the financial asset, the estimated future cash flows have been affected. The impaimient loss is recognised in the income and expenditure account. 1.13 Creditors and Provisions Creditor5 and provisions are recognised where the charity ha5 a present obligation reSu￿1ng 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 nomially recognised al 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 al the reporting end dale, taking into account the risks and uncertainties surrounding the obligation. Critical accounting estimates and judgements In the applicatlon of the charity's accounting policies, the Trustees are required to make judgements, eslimales and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other source5. The eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimales 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 ftjlure periods where the revision affects both current and future periods. The Iruslees are of the opinion that there are no material eslimales orjudgements. 14- (TJ J￿0 ) OJ ¢D O) l (TJ o) ￿ ¥J 0) f J ￿ Lr) Lrj Lr) ¢0 ro 0> i ¢x ri 10 Ln Ln o) Ln O ￿ (YJ CO (o 10 O (TJ U> 10 ryi ai iiuu BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 Charitable activitie5 2023 2022 Stsff Costs Payroll costs Staff training Staff uniforms Nursery consumables Cleaning and medical supplies Food and milk Sundries Hospitslity 276,188 924 598 372 20,646 12,657 3,567 134 888 251,112 931 1,621 26,064 7,328 2,718 225 571 315,774 290,570 Share of support costs (see note 51 Share of governance costs Isee note 51 80,317 15,885 79,907 4,200 411,976 374,677 Analysis by fund Unrestricted funds Restricted funds 311,530 100,446 285,847 88,830 411,976 374,677 16- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 Support costs Support Governanco Costs costs 2023 Support Governance costs costs Total 2022 Totsl Total Depreciation Buildings. gardens, maintenance and repairs Security Postage and offi supplies Telephone Insurance Heat and light Rates, water and waste disposal Accountancy and Independent Examination Professional fees Bank charges 55,739 55,739 56,737 56,737 2,618 877 2,818 877 4,182 1,492 4,182 1,492 5.072 1,255 3,057 3,657 5,072 1,255 3,057 3,857 3,698 1,091 2,779 4,014 3,698 1,091 2,779 4,014 7,680 7,680 4,283 4,283 15,069 816 15,089 816 362 2,976 1,224 2,976 1,224 1,631 362 1,631 80,317 15,885 96,202 79,907 4,200 84,107 Governance costs includes payments to the Independent Examiner of £1,30012022'. £1,488) for Independent Examinab"on fees, and £1.70012022'. £1,488) for accountancy fees. Trustees None of the Trustees lor any persons eonnected with them) received any remuneration or benefits from the charity during the current or prior year. 17- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 Employees The average monthly number of ernployees during the year was.. 2023 Number 2022 Number Employment costs 2023 2022 Wages and salaries Social security costs Other pènsion costs 262.402 8,444 5,342 242,953 3,233 4,926 276,188 251,112 The trustees consider its key management personnel comprise of the nursery manager and the deputy nursery manager. The lolal employment benefits of the key management personnel were £82,81712022". £73,209). No ernployee earned £60,000 or more during the year12022- no employees). Taxallon The company is a registered charity and is potentially exempl from income and corporation lax to the exlenl that income and gains are applicable and applied to charitsble purposes only. Tanglble flxed assets Nursery bulldlng Nursery Outdoor equlpment nursèry area Total Cost Al 1 April 2022 707,371 9,759 44,277 761,407 Al 31 March 2023 707,371 9,759 44,277 761,407 Depreciation and impairment At 1 April 2022 Depreciation charged in the year 526.002 55,737 9,757 44,277 580.036 55,739 At 31 March 2023 581,739 9,759 44,277 635,775 Carrying amount Al 31 March 2023 125,632 125,632 Al 31 March 2022 181,369 181,371 18- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 10 Debtors 2023 2022 Amounts falling due within one year: Trade debtors Prepayments and accrued income 4,309 8,518 6,689 10,338 12,827 17,027 11 Current asset investrnents 2023 2022 Unlisted investments 595,556 584,172 12 Creditors: amounts falling due within one year 2023 2022 Other tsxation and Social security Other creditors 4,213 17,842 2.459 7,888 22,055 10,347 19- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 13 Restricted funds The income funds of the charity include restricted fvnds comprising the followng unexpended balances of donations and grants held on trust for specific purposes". Movement in funds Incoming Resources Balance at resources expended 1 April 2022 Movement in funds Incoming Resources 8alanc8 at r8sources expended 31 March 2023 Balance at 1 April 2021 Nursery building capital fund LCC- 2 Year Old Capitsl Grant LCC- 2 Year Old Start Up Grant IFEEEI LCC- Inclusion Grant LCC- Deprivation Grant LCC - Early Years Pupil Premium 49,999 110,0001 39,999 110,0001 29,999 167,184 141,8941 125,290 141,8941 83,396 9,409 12,3001 7,109 12,3001 4,809 12,0381 20,771 116,6671 2,065 49.694 130,9481 20,811 18,359 13,234 114,5191 17,074 8,887 111,6071 14,354 3,371 3,808 13,4501 3,729 3,915 13,6951 3,949 246,284 37,813 188,8301 195,268 62,497 1100,4441 157,317 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 lo dale. The funding was received lo construct a nursery at Bumianlofts. 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 lo improve the outcomes for children living in deprived areas. L&eds CC - InGluslon Grant: This grant was given to create better outcomes for particular children with additional needs. Leeds CC- 2 Year Old Start Up Grant 13114 and 1411 S.. The 13114 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 14115 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 lo deliver additional FEEE (Free Earfy Educab"on Enlillemenll places in areas of highest need. Leeds CC- Early Years Pupll Pr8mlum'. This grant is additional funding for Eady Years settings lo improve the education provided for disadvantaged 3 and 4 year olds. -20- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 14 Prior period adjustment The prior period adjustment relates lo the reclassification of £584,172 from Cash al bank and in hand to Short tem deposits, as this related lo a cash balance which matured over a 12-month period. 15 Analysis of net assets between funds Unrgstrlctèd Rèstrlctèd funds funds 2023 2023 Totsl 2023 Fund balances at 31 March are representsd by: Tangible assets Net current assets 125,632 31,685 125,632 674,110 642,425 642,425 157,317 799,742 Analysis of net assets between funds Unrestrlcted Restrlcted funds funds 2022 2022 Total 2022 Fund balances at 31 March are represented by: Tangible assets Nel current assets 181,371 13,895 181,371 682,745 668,850 668,850 195,266 864,116 21 BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 16 Operating lease commitments Al the reporting end dale the charity had totsl commitments under non i ¢x ri 10 Ln Ln o) Ln O ￿ (YJ CO (o 10 O (TJ U> 10 ryi ai iiuu BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 Charitable activitie5 2023 2022 Stsff Costs Payroll costs Staff training Staff uniforms Nursery consumables Cleaning and medical supplies Food and milk Sundries Hospitslity 276,188 924 598 372 20,646 12,657 3,567 134 888 251,112 931 1,621 26,064 7,328 2,718 225 571 315,774 290,570 Share of support costs (see note 51 Share of governance costs Isee note 51 80,317 15,885 79,907 4,200 411,976 374,677 Analysis by fund Unrestricted funds Restricted funds 311,530 100,446 285,847 88,830 411,976 374,677 16- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 Support costs Support Governanco Costs costs 2023 Support Governance costs costs Total 2022 Totsl Total Depreciation Buildings. gardens, maintenance and repairs Security Postage and offi supplies Telephone Insurance Heat and light Rates, water and waste disposal Accountancy and Independent Examination Professional fees Bank charges 55,739 55,739 56,737 56,737 2,618 877 2,818 877 4,182 1,492 4,182 1,492 5.072 1,255 3,057 3,657 5,072 1,255 3,057 3,857 3,698 1,091 2,779 4,014 3,698 1,091 2,779 4,014 7,680 7,680 4,283 4,283 15,069 816 15,089 816 362 2,976 1,224 2,976 1,224 1,631 362 1,631 80,317 15,885 96,202 79,907 4,200 84,107 Governance costs includes payments to the Independent Examiner of £1,30012022'. £1,488) for Independent Examinab"on fees, and £1.70012022'. £1,488) for accountancy fees. Trustees None of the Trustees lor any persons eonnected with them) received any remuneration or benefits from the charity during the current or prior year. 17- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 Employees The average monthly number of ernployees during the year was.. 2023 Number 2022 Number Employment costs 2023 2022 Wages and salaries Social security costs Other pènsion costs 262.402 8,444 5,342 242,953 3,233 4,926 276,188 251,112 The trustees consider its key management personnel comprise of the nursery manager and the deputy nursery manager. The lolal employment benefits of the key management personnel were £82,81712022". £73,209). No ernployee earned £60,000 or more during the year12022- no employees). Taxallon The company is a registered charity and is potentially exempl from income and corporation lax to the exlenl that income and gains are applicable and applied to charitsble purposes only. Tanglble flxed assets Nursery bulldlng Nursery Outdoor equlpment nursèry area Total Cost Al 1 April 2022 707,371 9,759 44,277 761,407 Al 31 March 2023 707,371 9,759 44,277 761,407 Depreciation and impairment At 1 April 2022 Depreciation charged in the year 526.002 55,737 9,757 44,277 580.036 55,739 At 31 March 2023 581,739 9,759 44,277 635,775 Carrying amount Al 31 March 2023 125,632 125,632 Al 31 March 2022 181,369 181,371 18- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 10 Debtors 2023 2022 Amounts falling due within one year: Trade debtors Prepayments and accrued income 4,309 8,518 6,689 10,338 12,827 17,027 11 Current asset investrnents 2023 2022 Unlisted investments 595,556 584,172 12 Creditors: amounts falling due within one year 2023 2022 Other tsxation and Social security Other creditors 4,213 17,842 2.459 7,888 22,055 10,347 19- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 13 Restricted funds The income funds of the charity include restricted fvnds comprising the followng unexpended balances of donations and grants held on trust for specific purposes". Movement in funds Incoming Resources Balance at resources expended 1 April 2022 Movement in funds Incoming Resources 8alanc8 at r8sources expended 31 March 2023 Balance at 1 April 2021 Nursery building capital fund LCC- 2 Year Old Capitsl Grant LCC- 2 Year Old Start Up Grant IFEEEI LCC- Inclusion Grant LCC- Deprivation Grant LCC - Early Years Pupil Premium 49,999 110,0001 39,999 110,0001 29,999 167,184 141,8941 125,290 141,8941 83,396 9,409 12,3001 7,109 12,3001 4,809 12,0381 20,771 116,6671 2,065 49.694 130,9481 20,811 18,359 13,234 114,5191 17,074 8,887 111,6071 14,354 3,371 3,808 13,4501 3,729 3,915 13,6951 3,949 246,284 37,813 188,8301 195,268 62,497 1100,4441 157,317 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 lo dale. The funding was received lo construct a nursery at Bumianlofts. 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 lo improve the outcomes for children living in deprived areas. L&eds CC - InGluslon Grant: This grant was given to create better outcomes for particular children with additional needs. Leeds CC- 2 Year Old Start Up Grant 13114 and 1411 S.. The 13114 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 14115 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 lo deliver additional FEEE (Free Earfy Educab"on Enlillemenll places in areas of highest need. Leeds CC- Early Years Pupll Pr8mlum'. This grant is additional funding for Eady Years settings lo improve the education provided for disadvantaged 3 and 4 year olds. -20- BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 14 Prior period adjustment The prior period adjustment relates lo the reclassification of £584,172 from Cash al bank and in hand to Short tem deposits, as this related lo a cash balance which matured over a 12-month period. 15 Analysis of net assets between funds Unrgstrlctèd Rèstrlctèd funds funds 2023 2023 Totsl 2023 Fund balances at 31 March are representsd by: Tangible assets Net current assets 125,632 31,685 125,632 674,110 642,425 642,425 157,317 799,742 Analysis of net assets between funds Unrestrlcted Restrlcted funds funds 2022 2022 Total 2022 Fund balances at 31 March are represented by: Tangible assets Nel current assets 181,371 13,895 181,371 682,745 668,850 668,850 195,266 864,116 21 BURMANTOFTS COMMUNITY NURSERY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 MARCH 2023 16 Operating lease commitments Al the reporting end dale the charity had totsl commitments under non**Adjusted misstatements**||| |---|---|---|---|---| ||||**Dr**|**Cr**| |1||Being to amend funds b/fwd||| |||3100 · Retained Earnings|31,842.00|| |||3200 · Restricted Funds||31,842.00| |2||Being to amend wages||| |||6000 · Staff wages:6010 · Staff wages - gross|5,000.00|| |||6000 · Staff wages:6020 · Staff wages - Ers NI||5,000.00| |3||Annual depreciation||| |||1411 · Nursery Building - Acc Dep||55,737.00| |||6500 · Depreciation:6510 · Depreciation - Nursery Bdg|55,739.00|| |||1421 · Nursery & kitchen eq. - Acc Dep||2.00| |4||Flagstone Investment interest received||| |||1205 · Flagstone Investment|184.00|| |||7020 · Bank Interest Reserve Account||184.00| |5||Being to reverse Biffa prepayment||| |||1250 · Prepaymentts||770.00| |||6200 · Premises:6220 · Waste Disposal (biffa)|770.00|| |6|Being to post March 23 CC accrual||| |---|---|---|---| ||2100 · Accruals||1,400.73| ||6200 · Premises:6260 · Maintenance and Repairs|5.99|| ||6300 · Other:6360 · Subscriptions & legal fees|11.99|| ||6400 · Materials & Equipment:6430 · Medical and cleaning||| ||supplies|58.20|| ||6601 · Dep Grant - Nursery Consumables|86.16|| ||6602 · Incl Grant - Nursery Consumable|400.47|| ||6605 · Other Grant - EYPP Consumable|837.92|| |7|Being to correct accruals||| ||2100 · Accruals|2,971.08|| ||6200 · Premises:6210 · Gas and Electric||49.08| ||6300 · Other:6370 · Prof fees - audit/accountancy||2,922.00| |8|Being to reverse fees receivable b/fwd||| ||1220 · Fees receivable||6,886.66| ||4200 · Fees:4214 · Fees - Jungle|6,886.66|| |9|Current year accrued income||| ||1220 · Fees receivable|6,499.40|| ||4000 · Grants - Revenue:4002 · Inclusion Grant||2,240.00| ||4200 · Fees:4214 · Fees - Jungle||4,259.40| |10|Being to correct Ers NI and pensions||| ||6000 · Staff wages:6010 · Staff wages - gross||1,073.04| ||6000 · Staff wages:6020 · Staff wages - Ers NI|854.69|| ||6000 · Staff wages:6030 · Staff wages - Pen Ers|218.35|| ## **Appendix 2 Unadjusted misstatements** - 1 Being to correct non material wages and grant postings |6000|· Staff wages:6010 · Staff wages - gross|1,238.30|| |---|---|---|---| |6000|· Staff wages: 6603 - Incl Grant - Staff wages||2,708.33| |6000|· Staff wages: 4002 - Inclusion grant|1,470.03||