Registered number 4321656 Charity registered in England & Wales 1090086 

Acorn Childcare (UK) 

Report and Accounts 

31 March 2022 



**Acorn Childcare (UK) Report and accounts Contents** 

||**Page**|
|---|---|
|Company information|1|
|Directors' report|2|
|Statement of directors' responsibilities|6|
|Independent auditors' report|7|
|Statement of Financial Activities (including Income and Expenditure account)|9|
|Balance sheet|10|
|Cash flow statement|11|
|Notes to the accounts|12|





**Acorn Childcare (UK) Company Information** 

**Directors** Hilary Scott (Chairperson) Sarah Belcher (Secretary) Dawn Quennell (Treasurer) **Committee Members** Mark Normansell Sarah Lord Helen Pateman Nicole Brack **Childcare Manager** Debbie Hasson **Deputy Childcare Manager** Lorraine Morrissey **Business & Finance Manager** Alesha Lewis **Staff Representatives** Donna Bland **Auditors** Kamini Fletcher Limited Russett House Northampton Road Chapel Brampton Northants NN6 8AE **Bankers** Clydesdale/Yorkshire Bank Lloyds  Bank 7 Gold Street 2 George Row Northampton Northampton NN1 1EN NN1 1DJ **Registered office** Headlands Primary School Bushland Road Northampton NN3 2NS **Company Registered number** 4321656 **Charity Registered Number** 1090086 

1 



**Acorn Childcare (UK) Registered number: 4321656 Directors' Report** 

The directors present their report and accounts for the year ended 31 March 2022. 

The trustees, who are also the directors for the purposes of the Companies Act, have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (FRS 102) in preparing these financial statements. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The charity is a UK charitable company limited by guarantee and was set up on 1 November 2001 but only commenced it's activities when operations were transferred over from Acorn Child Care (unincorporated) on 1 April 2002, which ceased trading therefrom. It is governed by a Memorandum and Articles of Association. 

Acorn ChildCare (UK) is a registered charitable trust ( charity number : 1090086) whose registered office is the business address as stated per page 1. As such it is a non profit making organisation. Thus the fee increases are pegged to that which is necessary. Fees are set to cover the nursery's day to day expenses (building service charge, salaries, equipment and materials) and repairs, maintenance and development. Thank you to all the parents and guardians for continuing to pay your fees promptly. This helps us to keep our fees down. 

## **Organisational structure** 

The charity consists of the trustees, management committee and the staff. Please refer to the Legal and Administrative details on pages 1. The management committee also includes members who are parents of children at the nursery. 

There is no maximum number of trustees set out in the Articles of Association but a minimum number of 3. All trustees shall retire at each Annual General Meeting and are eligible for re-election by the members. Trustees take advantage of the Charities Commission updates and online training and duties and try to actively recruit new trustees from the charity's website and recommendations. 

The full committee meets minimum 4 times per academic year with additional meetings for each of the subcommittees:  fundraising and finance. 

Most trustees are already familiar with the work of the charity when appointed and are encouraged to visit regularly as part of the induction process. 

The trustees delegate day to day management to and take advise from the Manager ( Debbie Hasson) and Deputy Manager ( Lorraine Morrissey) and details of other organisations providing services to the charity such as the  bank and auditors are as per page 1. 

## **Risk management** 

The trustees have a risk register for identifying the types of risk it faces and implementing ways to mitigate those risks; in particular those related to operations and finances and are satisfied that systems are in place to mitigate exposure to the major risks. The current main risk is the reduction in funding from local authorities and a result of the government's new 30 hour free childcare provision policies. However currently majority of the childcare provision is parent funded and the charity is looking at other means to cover this shortfall. 

## **Directors** 

The following persons served as directors during the year: 

Dawn Quennell (Treasurer) Hilary Scott (Chairperson) Sarah Belcher (Secretary) 

## **Related Parties** 

The charity works closely with the Headlands Primary School and offers its pupils out of school care. As the charity is based on the school site, it pays rent and service charge to the school. 

2 



**Acorn Childcare (UK) Registered number: 4321656 Directors' Report** 

## **Disclosure of information to auditors** 

Each person who was a director at the time this report was approved confirms that: 

- so far as she is aware, there is no relevant audit information of which the company's auditor is unaware; and 

- she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditor is aware of that information. 

## **OBJECTIVES AND ACTIVITIES AND PUBLIC BENEFIT** 

Our main activities and who we are trying to help are described below.  All our charitable activities focus on providing a safe and caring environment to enhance the development and education of children by: 

- (a ) Offering a balanced and stimulating curriculum based on appropriate play facilities, ensuring individual needs are met and that such groups offer opportunities for all children, regardless of gender, race, culture or religion. 

- (b ) Encouraging other charitable activities through which parents may help children. 

- (c ) Furthering the aims of Preschool Learning Alliance. 

- (d ) Meeting the needs of children with special educational needs and disability (SEND) and working with other  professionals to help achieve their full potentials. 

- (e ) Offering support to children from vulnerable backgrounds. 

The trustee's policy is to ensure that the highest quality care service is available to the children and is undertaken to further our charitable purpose for public benefit. 

Acorn Child Care (UK) offers the following services for children: 

|**Service**|**Age group**|**Capacity per session (No. of places)**|**Capacity per session (No. of places)**|
|---|---|---|---|
|**Headlands**||||
|**NURSERY:**||||
|Sunflower room|3 months - 2.5 years||18|
|Bluebells room|2.5 years to 4 years||24|
|Evergreens room|Early Years Foundation Stage||32|
|**SAPLINGS & OAKS:**||||
|Before and after school|4  to 7 years & 8 to 11 years||38|
|Playscheme|4  to 7 years & 8 to 11 years||38|



Over 150 children attend Acorn each week but there is still additional spaces to reach capacity, 

## **Voluntary Help and Donations in Kind** 

- (a) The trustees and management committee members excluding the paid staff volunteer their administrative services and time free of charge. 

- (b) The charity received reduced local authority council rates in 2021/2022 of  £150 (full value £11,776) (2020/2021 exempt from rates: £11,776). 

The charity is grateful to all of the above named for their voluntary help and donations in kind. 

3 



**Acorn Childcare (UK) Registered number: 4321656 Directors' Report** 

## **ACHIEVEMENTS AND PERFORMANCE** 

The charity achieved an outstanding result from its last Ofsted inspection and continues to give the highest quality childcare provision by insuring the staff are given continued professional training including in safe guarding. We have obtained the Portage Stamp of Approval given to early year’s settings who have demonstrated they deliver inclusive early years education based upon Portage Principles. The charity was rated 5 star in it's recent environmental and health inspection. 

## **Activities and financial review of the year** 

Although the charity’s main source of income is from fees, it is still dependent on government and local authority funding. Although the charity achieved a surplus in the year, it is still mindful that it needs to build on it's reserves as it needs to renew it's old mobile in the coming years. 

The statement of financial activities attached to these accounts show the figures in more detail. 

The trustees confirm that the funds meet their obligations and will continue to do so. 

The trustees review the objectives and activities each year to ensure they continue to reflect the organisation's aims. In carrying out this review, the trustees consider the Charity Commission's general guidance on public benefit. The nursery caters for children from all social and economic backgrounds, and so achieves the criteria for public benefit. 

During the year the charity's income and expenditure was in line with expectation and a surplus was made in the year of £6,761 ( 2021: Loss £34,159). This is added to general reserves and carried forward as £174,583 ( 2021: £167,822). 

The charity is in continued negotiations with the Council with a view to securing a long term lease on the premises to give it sustainability. As at the balance sheet date , no contracts have been approved but the trustees hope that  the terms will be confirmed soon. 

## **Income Generation** 

Income is generated from fees to parents, fund raising and grant applications. 

## **Reserves policy** 

The trustees believe that in order to provide a buffer for uninterrupted services, a general reserve to equate one month's unrestricted fund expenditure should be maintained. It has designated £30,000 towards the maintenance fund for future building repairs and renewals and £80,000 towards two month's wages cover in case of a critical incident which may temporary halt the charity activity such as a flood or a pandemic. Please refer to the relevant funds note supporting these accounts. 

## **Investment policy** 

The trustees believe the most suitable policy for investing funds is in short term deposits which meets the requirement to generate both income and growth without undue risk. 

The trustees have the power to invest in such assets in the best interest of the charity. In view of the limited sums involved, any surpluses are kept on bank deposits to earn interest. 

## **Liability Insurance** 

The charity has adequate indemnity insurance cover. 

4 



**Acorn Childcare (UK) Registered number: Directors' Report** 

**4321656** 

## **PLANS FOR FUTURE PERIODS** 

- (a) The coming year will see continued development in the Nursery. The focus will continue to be on maintaining quality and standards. 

- (b) We continue to aim towards an ecologically sound environment for children, encouraging recycling, reducing and re-using materials. 

- (c) WWe continue to fundraise to upgrade the outside play area. 

- (d)  To develop our Forest School & Ethos around learning in a natural environment. 

- (e)  To continue to refurbish our Mobile over the coming years. 

- (f) To be fully prepared for future spikes of the pandemic and the safety of children and staff. ( see note 15). 

## **CUSTODIAN TRUSTEESHIP** 

There is no custodian trusteeship. All of the assets of the charity are owned and held in the name of the charity. 

## **Small company special provisions** 

This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime. 

This report was approved by the board on 26 August 2022. 


…………………………………………… Hilary Scott (Chairperson) Director 

5 



## **Acorn Childcare (UK) Statement of Directors' Responsibilities** 

The directors are responsible for their annual report and for the preparation of financial statements for each financial year, which give a true and fair view of the incoming resources and application of those resources and of the state of those affairs at the end of the financial year. 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 period. In preparing these financial statements, the Directors ( who are also the Trustees)  are required to: 

- Ensure that suitable accounting policies are established and applied consistently and in accordance with the SORP; 

- make judgements and estimates that are reasonable and prudent; 

- State whether the applicable accounting standards and statement of recommended accounting practice have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The Directors ( who are also the Trustees) have overall responsibility for ensuring that the charity has appropriate systems and controls, financial and otherwise. They are also responsible for also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity 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 charity and for their proper application as required by charity law and hence for taking reasonable steps for the prevention of fraud and other irregularities and to provide reasonable assurance that: 

- The charity is operating efficiently and effectively 

- All assets are safeguarded against unauthorised use or disposition and are properly applied 

- Proper records are maintained and financial information used within the charity, or for publication is reliable 

- The Charity complies with relevant laws and regulations 

In so far as the Directors (trustees)  are aware: 

● there is no relevant audit information of which the charitable company’s auditor is unaware; and 

●the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

……………………………………………. 

Hilary Scott (Chairperson) Director Approved by the board on 26 August 2022 

6 



**Acorn Childcare (UK) Independent auditors' report to the directors of Acorn Childcare (UK)** 

We have audited the accounts of Acorn Childcare (UK) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law, and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accouting Practice) including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. 

## **In our opinion the accounts:** 

- give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure and surplus for the  year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for Opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.  Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: 

- the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

- the directors' have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## **Other Information** 

The directors are responsible for the other information.  The other information comprises the information included in the directors annual report, other than the financial statements and our auditors report thereon.  Our opinion on the financial statements does not cover the other information, and except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise  appears to be materially misstated.  If we identify such material consistencies or apparent material misstatements, we are require to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information.  If based on the work we have preformed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- The information given in the financial statements is inconsistent in any material respect with the directors' report, or 

- the charitable company has not kept adequate accounting records; or 

- the financial statements are not in agreement with the accouting records or returns; or 

- we have not received all the information and explanations we require for our audit. 

7 



**Acorn Childcare (UK) Independent auditors' report to the directors of Acorn Childcare (UK)** 

## **Respective responsibilities of trustees (directors)** 

As explained more fully in the Statement of Directors' Responsibilities, the directors ( who are also the trustees) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement , whether due to fraud or error. 

In preparing the financial statements, the directors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor's responsbilities for the audit of the finanacial statements** 

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.  Reasonabe assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with ISA's (UK) will always detect a material misstatement when it exists.  Misstatements can arise from fraud or error and are considered material, if individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: **www.frc.org.uk/audiorsresponsibilities** . This description forms part of our auditors report.  We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit. 

## **Use of our report** 

This report is made solely to the charitable company's directors, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Reugluations 2008. Our audit work has been undertaken so that we might state to the charitable company's directors those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its directors as a body, for our audit work, for this report, or for the opinions we have formed. 

Kamini Fletcher (Senior Statutory Auditor) Russett House for and on behalf of Northampton Road Kamini Fletcher Limited Chapel Brampton Accountants and Statutory Auditors Northants 26 August 2022 NN6 8AE 

Kamini Fletcher Ltd is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 

8 



**Acorn Childcare (UK) Company Registered number Statement of Financial Activities (including Income and Expenditure account) 4321656 for the year ended 31 March 2022** 

## **Acorn Childcare (UK)** 


**----- Start of picture text -----**<br>
|||||||
|---|---|---|---|---|---|
|Notes|Unrestricted|Restricted|2022|2021|
|Funds|Funds|
|£|£|£|£|
|Donations and Legacies|2|-|25,746|25,746|111,191|
|Investment income|141|-|141|113|
|Incoming Resources from Charitable Activities|
|Charitable Activities|3|646,747|618|647,365|456,684|
|Other Incoming Resources|2|3,117|3,117|4,698|
|Total income and endowments|650,005|26,364|676,369|572,686|
|Expenditure on:|
|Charitable Activities|562,114|26,364|588,478|554,222|
|Other Costs|81,130|-|81,130|52,623|
|Total Expenditure|4/5|643,244|26,364|669,608|606,845|
|Net Income/(expenditure) before transfers|6,761|-|6,761|(34,159)|
|Transfers between funds|-|-|
|Net Movement in Funds|6,761|-|6,761|(34,159)|
|Balance at 1 April 2021|167,822|-|167,822|201,981|
|Balance at 31 March 2022|174,583|-|174,583|167,822|

**----- End of picture text -----**<br>


The statement of financial activities includes all gains and losses recognised in the year. All of the activities of the charity are classed as continuing. 

9 



|**Acorn Childcare (UK)**<br>**Balance Sheet**<br>**as at 31 March 2022**<br>**Notes**<br>**Fixed assets**<br>Tangible assets<br>8<br>**Current assets**<br>Debtors<br>9<br>Cash at bank and in hand<br>**Creditors: amounts falling due**<br>**within one year**<br>10<br>**Net current assets**<br>**Total assets less current**<br>**liabilities**<br>**Charity Funds**<br>Unrestricted Funds<br>12<br>**Total charity funds**|**Company Registered number**<br>**4321656**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>10,804<br>9,256<br>14,009<br>9,820<br>184,295<br>181,735<br>198,304<br>191,555<br>(34,525)<br>(32,989)<br>163,779<br>158,566<br>174,583<br>167,822<br>174,583<br>167,822<br>174,583<br>167,822|
|---|---|



The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime. 

……………………………………………. ……………………………………………. Hilary Scott Dawn Quennell Director Treasurer Approved by the board on 26 August 2022 

10 



## **Acorn Childcare (UK) Cash Flow Statement for the year ended 31 March 2022** 

|**Cash generated from operations**<br>Operating (loss/profit<br>Reconciliation to cash generated from operations:<br>Depreciation<br>Loss on disposal of fixed assets<br>(Increase) /decrease in debtors<br>Increase /(decrease) in creditors<br>**Net cash flow from operating activities**<br>**Cash from investing activities**<br>Purchase of tangible fixed assets<br>**Net (decrease)/increase in cash**<br>Cash at bank and in hand less overdrafts at 1 April<br>**Cash at bank and in hand less overdrafts at 31 March**<br>**Cash and cash equivalents consists of:**<br>Cash at bank and in hand|**2022**<br>**£**<br>6,761<br>7,976<br>361<br>(4,189)<br>1,536<br>12,445<br>(9,885)<br>(9,885)<br>2,560<br>181,735<br>184,295<br>184,295|**2021**<br>**£**<br>(34,159)<br>7,572<br>-<br>12,736<br>11,898<br>(1,953)<br>(2,154)<br>(2,154)<br>(4,107)<br>185,842<br>181,735<br>181,735|
|---|---|---|



11 



**Acorn Childcare (UK) Notes to the Accounts** 

**Company Registered number 4321656** 

**for the year ended 31 March 2022** 

## **1 Accounting policies** 

## _**Basis of preparation**_ 

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (issued October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Charities Act 2011, UK Generally Accepted Practice and the Companies Act 2006. 

The charity meets the definition of a public benefit entity under FRS 102.  Assets and liabilities are initially recorded at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). 

## _**Going Concern**_ 

The Covid 19 pandemic has had an impact on the charity's fee income but the support from the local authorities and with the buffer  of the reserves, the trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. As at the year end, although the charitable company had sufficient net current assets, it is dependent upon the  support of its funders to meet future liabilities as they fall due.  On the basis of the continued support of the funders, the trustees consider the charitable company will continue operational existence for the foreseeable future and accordingly the trustees consider it appropriate to prepare the accounts on a going concern basis. The accounts do not include any adjustments that would result from a withdrawal of this support. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest GBP. 

## _**Format**_ 

The company has taken advantage of the provisions of the Companies Act 2006 and presented an income and expenditure account in the form of a statement of financial activities on the grounds that it enables the financial statements to show a true and fair view of the result for the period. 

## _**Company status**_ 

The charity is a company limited by guarantee. The members of the company are the trustees as named in the trustees report. 

In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. 

## _**Income Recognition**_ 

Income received for a specific restricted purpose is credited to a separate restricted fund which is shown in a note to the financial statements. Total incoming resources credited to restricted funds are disclosed on the statement of financial activities which also shows incoming resources in respect of unrestricted funds. Donations and grants received are credited on the statement of financial activities in the year to which they relate. 

## _**Donations and Gifts**_ 

All monetary donations and gifts are included in full in the statement of financial activities when receivable, provided that there are donor imposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the pre-condition has been met. 

Legacies when applicable are included when the charity is advised by the personal representative of an estate that payment will be made, property transferred and the amount involved can be quantified. They are included in the statement of financial activities. 

Gifts-in kind when material and relevant are accounted for at the trustees' estimate of value to the charity or sale value as follows: 

- assets received for distribution by the charity are recognised only when distributed; 

- assets received for resale are recognised, where practicable, when receivable or otherwise sold; 

- gifts of fixed assets for charity use or funds for acquiring fixed assets for charity use are accounted for (as restricted funds) immediately on receipt. 

12 



**Acorn Childcare (UK) Notes to the Accounts for the year ended 31 March 2022** 

**Company Registered number 4321656** 

Donated services and income is included at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. An equivalent amount is charged as expenditure. No income is recognised when there is no financial cost borne by a third party. Voluntary help is not included as income. 

Donations under Gift Aid together with the associated income tax recoveries are credited as income when the donations are received. During the year there were no legacies or gifts in kind. 

## _**Grants Receivable**_ 

Revenue grants are credited as incoming resources when they are receivable provided conditions for receipt have been complied with, unless they relate to specified future periods, in which case they are deferred. 

Grants for the purchase of fixed assets are credited to restricted incoming resources when receivable. Depreciation on the fixed assets purchased with such grants is charged against the restricted fund, unless it is determined that the acquisition of the assets discharges the restricted fund. 

## _**Investment Income**_ 

Investment income, including associated income tax recoveries, is recognised when receivable. 

## _**Expenditure and irrecoverable VAT**_ 

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. The charity is not vat registered so all expenditure is taken gross, inclusive of vat. 

Expenditure is allocated on an actual use basis on the statement of financial activities between restricted and unrestricted funds, and is further analysed between: 

- Cost of raising funds comprise all fundraising costs. 

- Expenditure on charitable activities includes the costs incurred directly to the fulfilment of the Charity's objectives. 

- Governance costs (relating to compliance with constitutional and statutory requirements). 

## _**Support Costs and Governance Costs**_ 

Support costs are those functions that assist the work of the charity, but do not directly undertake charitable activities.  Support costs include back office costs, finance, personnel, payroll and governance costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and accountancy fees. 

## _**Fund accounting**_ 

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

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

13 



**Acorn Childcare (UK) Notes to the Accounts** 

**Company Registered number 4321656** 

**for the year ended 31 March 2022** 

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

## _**Tangible Fixed Assets and  Depreciation**_ 

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

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives. 

Leasehold improvements Mobile unit Fixtures and fittings 

Over period of lease (under negotiation) 25% on book value 25% on straight line basis 

## _**Operating leases**_ 

Rentals paid under operating leases are charged to income on a straight line basis over the lease term. 

## _**Pensions and employee benefits**_ 

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service and any unused holiday entitlement is not permitted to be carried forward so all staff ensure they take their holidays before the holiday period ends. 

## _**Debtors**_ 

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Other financial assets are initially recognised at transaction price including any transaction costs . 

## _**Creditors**_ 

Short term creditors are measured at transaction price (which is usually the invoice price). 

## _**Taxation**_ 

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

14 



|**Acorn Childcare (UK)**|**Acorn Childcare (UK)**||**Company**|**Registered**|**number**|
|---|---|---|---|---|---|
|**Notes to the Accounts**|||||**4321656**|
|**for**|**the year ended 31 March 2022**|||||
|**2**|**Income from Donations and legacies**|**Unrestricted**|**Restricted**|**2022**|**2021**|
|||**£**|**£**|**£**|**£**|
||NCC- deprivation Grant (restricted)|-|-|-|-|
||NCC - Trajectory Grant (restricted)||-|-|-|
||Covid CJRS ( Furlough) Grants|-|-|-|103,894|
||NCC - Higher Needs Funding (restricted)||25,746|25,746|7,297|
|||-|25,746|25,746|111,191|
||**Fundraising & Other income**|3,117|-|3,117|4,698|
|||3,117|25,746|28,863|115,889|
|**3**|**Income from Charitable Activities**<br>Fees - Headlands (incl.  LEA)<br>Welfare Milk Reimbursement (restricted)|**Unrestricted**<br>**£**<br>646,747<br>-|**Restricted**<br>**£**<br>-<br>618|**2022**<br>**£**<br>646,747<br>618|**2021**<br>**£**<br>456,071<br>613|
|||646,747|618|647,365|456,684|
|**4**|**Expenditure**<br>Staff Costs<br>Childcare and Centre Facilities|**Unrestricted**<br>**£**<br>499,420<br>62,694|**Restricted**<br>**£**<br>25,746<br>618|**2022**<br>**£**<br>525,166<br>63,312|**2021**<br>**£**<br>514,314<br>39,908|
|||562,114|26,364|588,478|554,222|
||**Analysis of Support Costs  incl. Governance**<br>Centre Running Costs<br>Depreciation<br>Audit and Accountancy (Governance costs)|**Unrestricted**<br>**£**<br>**costs:**<br>70,223<br>7,977<br>2,930|**Restricted**<br>**£**|**2022**<br>**£**<br>70,223<br>7,977<br>2,930|**2021**<br>**£**<br>42,121<br>7,572<br>2,930|
|||81,130|-|81,130|52,623|



Amounts paid to the external auditor £1,955 (2021:£1,955) and to an external accountant £975 (2021: £975) 

## **5 Total Resources Expended** 

|Staff Costs<br>Depreciation<br>Centre Running Costs<br>Other<br>2022 Total<br>2021 Total|**Fundraising**<br>**Charitable**<br>**Activities**<br>**Other Costs Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>525,166<br>525,166<br>-<br>7,977<br>7,977<br>-<br>70,223<br>70,223<br>-<br>63,312<br>2,930<br>66,242<br>-<br>588,478<br>81,130<br>669,608<br>-<br>554,222<br>52,623<br>606,845|
|---|---|



15 



|**Acorn Childcare (UK)**<br>**Notes to the Accounts**<br>**for the year ended 31 March 2022**<br>**6**<br>**Net income for the year**<br>Depreciation of owned fixed assets<br>Auditors remuneration<br>Accountancy, taxation and other<br>**7**<br>**Staff costs and employee benefits**<br>Wages and salaries<br>Social Security Costs<br>Pension costs<br>Net income is stated after charging/(crediting):|**Company Registered number**<br>**4321656**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>7,977<br>7,572<br>1,955<br>1,955<br>975<br>975<br>10,907<br>10,502<br>**2022**<br>**2021**<br>**£**<br>**£**<br>488,835<br>481,167<br>27,586<br>24,839<br>8,745<br>8,308<br>525,166<br>514,314|
|---|---|



No employee received emoluments during the year of more than £60,000. 

Included within wages and salaries is £8,745 paid in respect of defined contribution pension scheme payments (2021; £8,308)  There was £1,939 outstanding at 31 March 2022 (2021: £3,219) 

The average number of employees and trustees during the year was as follows: 

|Employees for charities activities<br>Governance (Trustees)|**Total**<br>**FTE**<br>**Total**<br>**FTE**<br>32<br>21<br>38<br>21<br>3<br>0<br>3<br>0<br>35<br>21<br>41<br>21<br>**2021**<br>**2022**|
|---|---|



Key management personnel received remuneration of £113,092 (2021: £114,110) 

None of the trustees received remuneration in the current or previous year and there were no expenses paid to trustees in the year or the previous year. 

16 



**Company Registered number 4321656** 

## **Acorn Childcare (UK) Notes to the Accounts** 

**for the year ended 31 March 2022** 

## **8 Tangible fixed assets** 

|**8**|**Tangible fixed assets**|||||
|---|---|---|---|---|---|
|||**Leasehold**||||
|||**Improve-**||**Fixtures &**||
|||**ments**|**Mobile**|**Fittings**|**Total**|
|||**£**|**£**|**£**|**£**|
||**Cost**|||||
||At 1 April 2021|30,685|78,000|79,831|188,516|
||Additions|-|-|9,885|9,885|
||Disposals|-|-|(4,024)|(4,024)|
||At 31 March 2022|30,685|78,000|85,692|194,377|
||**Depreciation**<br>At 1 April 2021<br>Charge for the year<br>On disposals|30,685<br>-<br>-|77,784<br>54<br>-|70,791<br>7,922<br>(3,663)|179,260<br>7,976<br>(3,663)|
||At 31 March 2022|30,685|77,838|75,050|183,573|
||**Net book value**<br>At 31 March 2022|-|162|10,642|10,804|
||At 31 March 2021|-|216|9,040|9,256|
|**9**|**Debtors**<br>Trade debtors<br>Other debtors|||**2022**<br>**£**<br>10,343<br>3,666|**2021**<br>**£**<br>6,467<br>3,353|
|||||14,009|9,820|
|**10 **|**Creditors: amounts falling due within one year**<br>Trade creditors<br>Other taxes and social security costs<br>Other creditors|||**2022**<br>**£**<br>2,735<br>6,640<br>25,150|**2021**<br>**£**<br>1,150<br>5,073<br>26,766|
|||||34,525|32,989|



17 



**Company Registered number 4321656** 

## **Acorn Childcare (UK) Notes to the Accounts** 

**for the year ended 31 March 2022** 

## **11 Analysis of Net Assets Between Funds** 

|Tangible Fixed Assets<br>Current Assets<br>Current Liabilities|**Unrestricted**<br>**Restricted**<br>**Total**<br>**£**<br>**£**<br>**£**<br>10,804<br>10,804<br>198,304<br>-<br>198,304<br>(34,525)<br>(34,525)<br>174,583<br>-<br>174,583|
|---|---|



The balance sheet shows net assets at 31 March 2022 of £174,583 (2021: £167,822).  Of this balance £Nil (2021: £Nil) relates to restricted funds. 

|**12 Movement in Funds**<br>**Restricted:**<br>Welfare Food/Milk Reimbursement<br>Deprivation<br>Higher Needs Funding<br>**Unrestricted:**<br>Designated:<br>Building reserve<br>Critical wages cover<br>General|**As at**<br>**Incoming**<br>**Outgoing**<br>**Transfers**<br>**As at**<br>**1 April 2021**<br>**Resources**<br>**Resources**<br>**31 March 2022**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>618<br>(618)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>25,746<br>(25,746)<br>-<br>-<br>-<br>26,364<br>(26,364)<br>-<br>-<br>30,000<br>-<br>-<br>-<br>30,000<br>80,000<br>-<br>-<br>-<br>80,000<br>57,822<br>650,005<br>(643,244)<br>-<br>64,583<br>167,822<br>650,005<br>(643,244)<br>-<br>174,583<br>167,822<br>676,369<br>(669,608)<br>-<br>174,583|
|---|---|



## **Restricted:** 

A welfare milk subsidy of £618 (2021: £613) is receivable to cover the cost of milk provided to the children. 

The charity received £25,746 (2021: £7,297) in respect of special higher needs funding for certain children . 

## **Designated:** 

£30,000 has been set aside for future building and outdoor maintenance and repairs. 

£80,000 has been set aside in case of critical incident cover to cover  two months wages and pension contribution costs. 

18 



**Acorn Childcare (UK) Notes to the Accounts for the year ended 31 March 2022** 

**Company Registered number 4321656** 

## **13 Related party transactions** 

The charity is based within Headlands Primary School site and works in association with the school. 

Headlands Primary School  charged the charity for rent and service charges of £22,042 (2021:£15,075). 

At the balance sheet date, the amount outstanding was £nil. 

## **14 Ultimate controlling party** 

The charitable company is under the ultimate control of its directors (who are also the trustees) and are listed in the directors  report. 

## **15 Post Balance Sheet Event** 

The charity resumed negotiations post Covid with the Council, with a view to securing a long term lease on the premises to give it sustainability. As at the balance sheet date , no contracts have been approved but the trustees hope that  the terms will be confirmed soon. 

19