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2020-08-31-accounts

Charity number: 1093082 Company number: 04409008

Thurgoland Childcare

(A company limited by guarantee)

Trustees' report and financial statements

for the year ended 31 August 2020

Thurgoland Childcare (A company limited by guarantee)

Contents

Page
Legal and administrative information 1
Trustees' report 2 - 4
Accountants' report to the trustees 5
Statement of financial activities 6
Balance sheet 7 - 8
Notes to the financial statements 9 - 12

Thurgoland Childcare (A company limited by guarantee)

Legal and administrative information

Charity number 1093082
Company registration number 04409008
Business address Halifax Road
Thurgoland
S35 7AL
Registered office Halifax Road
Thurgoland
Sheffield
S35 7AL
Trustees Lauren Eaton Appointed 25.08.20
Maxine Hoskin Appointed 25.08.20
Gaynor Quinney
Andrea Daniels Resigned 25.01.21
Ursula Hattersley Resigned 25.11.20
Directors Lauren Eaton Appointed 25.08.20
Maxine Hoskin Appointed 25.08.20
Gaynor Quinney
Andrea Daniels Resigned 25.01.21
Ursula Hattersley Resigned 25.11.20
Accountants Quinn's Accountancy Services
16 Lyndhurst Bank
Penistone
Sheffield
S36 6ER

Thurgoland Childcare (A company limited by guarantee)

Report of the trustees (incorporating the directors' report) for the year ended 31 August 2020

The trustees present their report and the financial statements for the year ended 31 August 2020. The trustees, who are also directors for the purposes of company law and who served during the year and up to the date of this report are set out on page 1.

Structure, governance and management

Organisation

Thurgoland Childcare is a charitable company. That is to say, it is registered both within the Charity Commission as a charity and with Companies House as a company limited by guarantee, without share capital.

The Charity is administered by a Board of Trustees/Directors. The directors are responsible for strategic and financial planning and for identifying and responding to any risks and to provide support to the nursery manager with a number of areas such as grant applications, health & safety, marketing, sourcing suppliers and fund raising.

The directors of the charitable company are its trustees for the purposes of charity law and the governing documents of the charity are the Memorandum and Articles of Association.

Trustees and Patrons

The trustees are elected each year by the charity's members at the annual general meeting. Additional trustees may be appointed during the year by the board of trustees.

Objectives and activities

Thurgoland Childcare's Charitable Objectives are:

To provide a warm, secure and caring environment in which each individual child feels safe, comfortable and happy - the welfare of the children placed in our care is of paramount importance.

To provide high quality education and childcare where young children can investigate and explore a well planned, imaginative and challenging environment both indoors and outside, where they are encouraged to grow and develop at their own pace and where everyday is varied, stimulating exciting and above all…fun! Carefully planned and fun-filled learning activities which are based on our professional knowledge of how young children learn.

To maintain high standards of education and childcare through a commitment to the professional development and ongoing training of all members of staff. To encourage an awareness of the necessity to keep abreast of current research in the field of education and childcare.

To continue the excellent work families have started. Learning is a shared experience and communication between home and Nursery is key to a child's learning and development. We aim to provide opportunities to enable parents/carer's to feel fully involved in their child's nursery experience.

To value each child as an individual. A child's early years are the most formative and such early stages are precious. A young child needs to know that he/she is going to be valued as an individual - to encourage a positive self-image and attitude to learning and a high self-esteem.

To inspire children to discover a love of learning.

Achievements and performance

The day to day finances of the setting have been efficiently managed throughout the year by the Finance Administrator continuing to adhere to the financial procedures to ensure payments are received timely to achieve consistent cash flow. The new funding structure continues to be developed to enable all eligible families to access the 30 hours funding whilst ensuring that the setting remains both financially viable as well as affordable for families.

Thurgoland Childcare (A company limited by guarantee)

Report of the trustees (incorporating the directors' report) for the year ended 31 August 2020

Recruitment of new Trustees continues to be addressed with recruitment needed from both within the local community and also with representation from our current families.

We were beginning to see the positive effects of the new fees structure for families and a stabilisation of our employment base with our new wage structure when COVID-19 struck and we had to make the difficult decision to close the setting for a period of two months. Staff were furloughed and we had the task of putting in place safer more rigorous controls following government guidance in order to be able to re-open again to key worker children in June 2020. The decisions taken at this time ensured that we were able to remain open and continue to provide childcare, albeit to a lesser number of families until the end of the year with no breaches and need to close bubbles due to the Coronavirus, an achievement we are proud of.

The Directors wish to record their thanks to the Nursery Manager and her dedicated, professional staff for their hard work throughout this extremely challenging year. They have responded to the changes that have had to be implemented as a result of COVID-19 but have still continued to provide a warm, welcoming and stimulating environment for the children who attend the setting. It is due to their efforts that we have been able to provide a safe environment for everyone during COVID-19 and continue to be so well regarded within the community with a consistently high demand for places.

Financial review

During the year the charity generated income of £248,799 (2019 - £214,026). The surplus for the year was £39,632 (2019 deficit - £9,928).

Principal Risks and Uncertainties

The major risk faced by the setting continues to be the balance between the level of fees charged to parents and wages paid to staff. Staffing continues to be an issue and recruitment and retention will continue to be a balancing act with the need to increase wages in line with the National Living Wage and the % increase in auto enrolment pension contributions alongside the fees charged to parents. The Directors and Nursery Manager shall continue to review nursery fees and wages over the coming year to ensure that we can attract the staff we need whilst at the same time ensuring our fee structure does not exclude families that the nursery aims to serve.

Plans for future periods

The Directors will continue to invest in improving financial and operational controls to ensure the long term success of the charity.

Statement of trustees' responsibilities

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing these financial statements, the trustees are required to:

Thurgoland Childcare

(A company limited by guarantee)

Report of the trustees (incorporating the directors' report) for the year ended 31 August 2020

Small company provisions

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

On behalf of the board

Lauren Eaton Maxine Hoskin Director Director

19 May 2021

Thurgoland Childcare (A company limited by guarantee)

Accountants' report to the trustees on the unaudited financial statements of Thurgoland Childcare.

We report on the financial statements of Thurgoland Childcare for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet, the cash flow statement and the related notes. These financial statements have been prepared under the accounting policies set out therein.

Respective responsibilities of the trustees and auditors

As described in the statement of trustees' responsibilities the company's trustees (who also act as directors for the charitable activities of Thurgoland Childcare) are responsible for the preparation of the accounts, and they consider that the company is exempt from an audit. It is our responsibility to carry out procedures designed to enable us to report our opinion.

Basis of opinion

Our work was conducted in accordance with the Statement of Standards for Reporting Accountants, and so our procedures consisted of comparing the financial statements with the accounting records kept by the company, and making such limited enquiries of the officers of the company as we considered necessary for the purposes of this report. These procedures provide only the assurance expressed in our opinion.

Opinion

In our opinion:

Quinn's Accountancy Services

16 Lyndhurst Bank Penistone Sheffield S36 6ER

Thurgoland Childcare

(A company limited by guarantee)

Statement of financial activities (incorporating the income and expenditure account)

For the year ended 31 August 2020

Unrestricted
funds
Notes
£
Incoming resources
Incoming resources from generating funds:
Activities for generating funds
2
229
Incoming resources from charitable activities
3
248,570
Total incoming resources
248,799
Resources expended
Charitable activities
208,033
Governance costs
5
1,134
Total resources expended
209,167
Net incoming/(outgoing) resources for the year /
Net income/(expenditure) for the year
39,632
Total funds brought forward
46,466
Total funds carried forward
86,098
2020
Total
£
229
248,570
248,799
208,033
1,134
209,167
39,632
46,466
86,098
2019
Total
£
157
213,869
214,026
222,946
1,008
223,954
)
(9,928
56,394
46,466

The statement of financial activities includes all gains and losses in the year and therefore a separate statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The notes on pages 9 to 12 form an integral part of these financial statements.

Thurgoland Childcare (A company limited by guarantee)

Balance sheet

as at 31 August 2020

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling
due within one year
11
Net current assets
Net assets
Funds
Unrestricted income funds
Total funds
2020
£
£
1,327
4,791
83,855
88,646
)
(3,875
84,771
86,098
86,098
86,098
2019
£
£
2,389
3,601
45,245
48,846
)
(4,769
44,077
46,466
46,466
46,466
2019
£
£
2,389
3,601
45,245
48,846
)
(4,769
44,077
46,466
46,466
46,466
46,466
46,466
46,466

The Balance Sheet continues on the following page.

The notes on pages 9 to 12 form an integral part of these financial statements.

Thurgoland Childcare (A company limited by guarantee)

Balance sheet (continued)

Trustees statements required by the Companies Act 2006 for the year ended 31 August 2020

In approving these financial statements as trustees of the company we hereby confirm:

(a) that for the year stated above the company was entitled to the exemption conferred by section 477 of the Companies Act 2006 ;

(b) that no notice has been deposited at the registered office of the company pursuant to section 476 of the Companies Act 2006 requesting that an audit be conducted for the year ended 31 August 2020 and

(c) that we acknowledge our responsibilities for:

(1) ensuring that the company keeps accounting records which comply with section 386 of the Companies Act 2006, and

(2) preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for the year then ended in accordance with the requirements of sections 394 and 395, and which otherwise comply with the provisions of the Companies Act relating to financial statements, so far as applicable to the company.

These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies .

The financial statements were approved by the board on 19 May 2021 and signed on its behalf by

Lauren Eaton Director

Maxine Hoskin Director

The notes on pages 9 to 12 form an integral part of these financial statements.

Thurgoland Childcare (A company limited by guarantee)

Notes to financial statements for the year ended 31 August 2020

1. Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.

1.1. Basis of accounting

The financial statements are prepared under the historical cost convention and in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities: Statement of Recommended Practice' issued in March 2005 (SORP 2005) and the Companies Act 2006.

1.2. Cashflow

The charity has taken advantage of the exemption in FRS1 from the requirement to produce a cashflow statement because it is a small charity.

1.3. Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Grants, including grants for the purchase of fixed assets, are recognised in full in the statement of financial activities in the year in which they are receivable.

1.4. Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's shop.

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

1.5. Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

2. Activities for generating funds

Unrestricted
funds
£
Investment income
229
229
2020
Total
£
229
229
2019
Total
£
157
157

Thurgoland Childcare (A company limited by guarantee)

Notes to financial statements for the year ended 31 August 2020

3.
Incoming resources from charitable activities
Unrestricted
funds
£
Government Funded Nursery Education
119,958
Fees for Nursery Education
99,773
Grants
28,839
248,570
4.
Costs of charitable activities - by activity
Activities
undertaken
directly
£
Staff costs
182,469
Support costs: Operation of Kids Centre
13,960
Provision of Nursery Education
11,604
208,033
2020
Total
£
119,958
99,773
28,839
248,570
2020
Total
£
182,469
13,960
11,604
208,033
2019
Total
£
75,691
137,635
543
213,869
2019
Total
£
197,203
8,778
16,965
222,946

5. Governance costs

Governance costs
Unrestricted
funds
£
Professional - Accountancy fees
1,134
Office expenses - Other
-
1,134
2020
Total
£
1,134
-
1,134
2019
Total
£
1,007
1
1,008

6. Net incoming/(outgoing) resources for the year

2020 2019
£ £
Net incoming/(outgoing) resources is stated after charging:
Depreciation and other amounts written off tangible fixed assets 1,062 796

Thurgoland Childcare (A company limited by guarantee)

Notes to financial statements for the year ended 31 August 2020

7. Employees

Employment costs
Wages and salaries
Other costs
2020
£
182,469
1,345
183,814
2019
£
197,203
2,876
200,079

Number of employees

The average monthly numbers of employees (including the trustees) during the year, calculated on the basis of full time equivalents, was as follows:

full time equivalents, was as follows:
2020 2019
Number Number
Fundraising 15 12

8. Taxation

The charity's activities fall within the exemptions afforded by the provisions of the Income and Corporation Taxes Act 1988. Accordingly, there is no taxation charge in these accounts.

Long
Fixtures,
9.
Tangible fixed assets
leasehold fittings and
property
equipment
£
£
Cost
At 1 September 2019 and
At 31 August 2020
193,871
26,541
Depreciation
At 1 September 2019
193,871
24,152
Charge for the year
-
1,062
At 31 August 2020
193,871
25,214
Net book values
At 31 August 2020
-
1,327
At 31 August 2019
-
2,389
Total
£
220,412
218,023
1,062
219,085
1,327
2,389

Thurgoland Childcare (A company limited by guarantee)

Notes to financial statements for the year ended 31 August 2020

10. Debtors

Trade debtors
11.
Creditors: amounts falling due
within one year
Trade creditors
Other taxes and social security
Accruals and deferred income
2020
£
4,791
2020
£
)
(1,044
3,911
1,009
3,876
2019
£
3,601
2019
£
)
(1,192
4,967
994
4,769

12. Company limited by guarantee

Thurgoland Childcare is a company limited by guarantee and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.