GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[ST] AUGUST 2021
REGISTERED CHARITY NUMBER: 1101914
COMPANY NUMBER: 04882693
R J FRANCIS AND CO. Chartered Accountants & Registered Auditors Marshall Business Centre Faraday Road Hereford HR4 9NS
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee)
FOR THE YEAR ENDED 31[ST] AUGUST 2021
| CONTENTS: Company Information Trustees’ Annual Report Accountants Report Statement of Financial Activities Balance Sheet Notes to the Accounts |
PAGE |
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| 1 2 – 5 6 7 8 9 - 12 |
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee)
COMPANY INFORMATION
| Charity Name: | Gateway (Education & Childcare) Trust Limited |
|---|---|
| Charity Number: | 1101914 |
| Company Number: | 04882693 |
| Trustees/ Directors: | Mr A J Larkin, Chair of Trustees |
| Mrs H J Pearson | |
| Mr D Squire | |
| Registered Office: | The Gateway Centre |
| Longworth Lane | |
| Bartestree | |
| Hereford | |
| HR1 4GA | |
| Accountants: | R J Francis & Co Limited |
| Marshall Business Centre | |
| Faraday Road | |
| Hereford | |
| HR4 9NS | |
| Solicitors: | Lambe Corner & Co |
| Bridge Street | |
| Hereford | |
| HR4 9DJ | |
| Bankers: | Lloyds TSB Bank plc |
| High Town | |
| Hereford | |
| HR1 2AE |
(1)
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED
TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[ST] AUGUST 2021
The Trustees, who are also Directors of the Charity for the purposes of the Companies Act, submit their financial statements for the year ended 31[st] August 2021.
The Charity is a charitable Company limited by guarantee and was set up to provide pre-school nursery and out of school activities. It is governed by a memorandum and articles of association.
Structure, Governance and Management
The Trustees in office during the year were as follows:
Mr A J Larkin, Chair of Trustees Mr T J Bryant Mr W G McGill Mrs H J Pearson Mr D Squire
Mrs R D McGill resigned as a Trustee on 22[nd] September 2020. Mr WG McGill resigned as a trustee on17th September 2021 and Mr TJ Bryant resigned on 28[th] January 2022.
The Company does not have share capital, being limited by guarantee.
Mrs J Larkin is the senior staff member to whom day to day management of the Charity is delegated by the Trustees.
Potential new Trustees are identified through local knowledge and contacts within the surrounding community and include interested parents using the children’s nursery, local professionals and members of the local community themselves.
Discussions take place with potential new Trustees about:
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Duties - Responsibilities
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Aspirations of the Nursery
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Meetings (timings / content)
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Added value to the community
The candidates also have the opportunity to attend meetings of the existing Trustees.
The nursery comprises those members as detailed above. Decisions are made at the Trustees’ meetings on a majority basis, although outcomes are unusually unanimous in view of the commonality of desire to achieve the aims and objectives of the Trust for the benefit of the local and wider community and the nursery staff itself.
(2)
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED
TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[ST] AUGUST 2021
Statement of Trustees’ Responsibilities
The Trustees (who are also Directors of the Charity for the purposes of Company Law) are responsible for preparing the Trustees’ Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (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 charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the charitable Company for the year. In preparing these financial statements, the Trustees are required to:
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Select suitable accounting policies and then apply them consistently;
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Observes the methods and principles in the Charities SORP;
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Make judgements and estimates that are reasonable and prudent;
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State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable Company will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable Company and hence for taking reasonable steps for the prevention of the detection of fraud and other irregularities.
Insofar as the Trustees are aware:
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There is no relevant information of which the charitable Company’s auditor is unaware: and
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The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant information and to establish that the auditor is aware of that information.
Reserves policy
It is the policy of the Charity to maintain unrestricted funds at a level which equates to approximately 3 months of unrestricted expenditure to provide sufficient funds to cover management, administration and support costs. Due to rising costs, we have been unable to maintain this, but we are taking action to ensure future reserves will be established, as explained in the financial review.
Risk
Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects. These procedures are regularly reviewed to ensure they meet the needs of the Charity.
Principle identified risks
Cost Pressures
Staffing remains the main overhead, particularly as child numbers increased again in the year and maternity cover continued.
Objectives and activities
The Charity is established to provide pre-school nursery and out of school activities. The object of the nursery is to enhance the development and education of the children under statutory school age by encouraging parents to understand and provide for the needs of their children through the activities of the nursery.
The nursery promotes the care and education of children in need of care during out of school hours and during the school holidays.
The nursery also seeks to promote, for the inhabitants of the parish of Lugwardine and Bartestree and the neighbourhood without distinction of sex, sexual orientation, race or of political, religious or other opinions, by associating together the said inhabitants and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure time occupation with the object of improving the conditions of life for the said inhabitants.
(3)
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED
TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[ST] AUGUST 2021
Achievements and Performance
The setting remains a charitable body governed by its objects and also remains a company limited by guarantee. The Trust owns the freehold of the buildings and land and governs the day-to-day activities of Gateway Nursery.
Total income for the financial year end 31[st] August 2021 was £712,437 and with expenditure totalling £678,032, we achieved a surplus for the financial year of £34,405. Fee income normally accounts for almost all of normal incoming resources, however, we again saw a mixed composition of income during the financial year as a result of the continuing pandemic. Normal fee income increased this year to £631,718 (compared with £532,557 for the twelve months to 31[st] August 2020) but in addition to normal trading income, we were able to again benefit from the Government’s Job Retention Scheme furlough income (£30,171), other grant income (£1,686) and a final payment from a claim under the setting’s Business Interruption Insurance (£48,454).
In terms of the balance sheet, fixed assets at the end of the new financial year to 31[st] August 2021 stood at £300,614, down from £308,080 at the 2020 financial year end. These fixed assets comprise primarily land and buildings. Cash balances totalled £92,169 increasing from £55,267 as at 31[st] March 2020.
Of the total expenditure, staffing remains the main overhead at £516,073, being 76% of total costs, and this was again broadly consistent with the previous financial year which was 75% of total expenditure. Whilst staff costs increased by around £32,000, other costs were broadly in line with the previous year and the surplus position was again particularly pleasing as we continued to invest in the business and cope with the continuing challenges brought about by the pandemic.
The Early Years sector has continued to provide its services throughout the COVID-19 pandemic but this year we have seen a marked change to the recruitment market with many people having decided to leave the childcare industry. We ourselves have seen a number of staffing changes during the year and have faced difficulty in filling vacant posts. However, we have managed to maintain the required staff ratios throughout which remains a key priority and we have seen a gradual increase in numbers of children returning to the setting and new children attending for the first time. We also have a healthy waiting list and enquiries for places continue on a weekly basis.
We also saw the resignation of one Trustee, Rachel McGill, for personal reasons and we anticipate a further resignation by Mr Bill McGill for similar reasons. We would like to thank Rachel for her continued support during her tenure and we will seek to recruit additional Trustees in due course.
At the end of April, we appointed a new manager, Sarah Reed, to work alongside Elaine Talbot. Whilst they have separate responsibilities they have worked well together from the start with excellent feedback from both staff and parents.
An Ofsted inspection was carried out on the 2[nd] July with the two relatively new managers leading it for the first time with a ‘Good’ outcome for overall effectiveness and for all aspects of the inspection. We were delighted with the outcome and the subsequent report which praised management, staff and children and described the setting as “friendly and welcoming”.
The Trustees would again like to thank both the staff and management team for their commitment and resilience during what has been a continuing period of challenge and the Trustees will continue to provide whatever support is necessary over the forthcoming months as we hopefully begin to emerge from the pandemic.
(4)
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED
TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31[ST] AUGUST 2021
Statement of disclosure of information to accountants
We, the Directors of the Company who held office at the date of approval of these financial statements, as set out above, each confirm so far as we are aware, that:
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There is no relevant audit information of which the Company’s accountants are unaware; and
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we have taken all the steps that we ought to have taken as Directors in order to make ourselves aware of any relevant information and to establish that the Company’s accountants are aware of that information.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charitable Company’s Website.
Accountants
A resolution proposing that R J Francis & Co Limited be re-appointed as accountants of the Charity will be proposed at the Annual General Meeting.
Signed on behalf of the Board of Trustees
A J Larkin Chair of Trustees 27[th] May 2022
(5)
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED
ACCOUNTANTS REPORT
FOR THE YEAR ENDED 31[ST] AUGUST 2021
Independent examiner’s report to the Trustees of Gateway (Education & Childcare) Trust Limited
I report on the accounts of the company for the year ended 31[st] August 2021 which are set out on pages 7 to 12.
Respective responsibilities of trustees and examiner
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. [The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the ICAEW (Institute of Chartered Accountants in England and Wales).]
Having satisfied myself that the charity is not subject to audit under Part 16 of the Companies Act 2006 and is eligible for independent examination, it is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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to state whether particular matters have come to my attention.
Basis of independent examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently, no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
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which gives me reasonable cause to believe that, in any material respect, the requirements:
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(a) to keep accounting records in accordance with section 386 of the Companies Act 2006, and
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(b) to prepare accounts which accord with the accounting records, comply with the accounting requirements of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities (revised 2005) have not been met, or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
R J Francis For and on behalf of R J Francis & Co Ltd 27[th] May 2022
Marshall Business Centre Faraday Road Hereford HR4 9NS
(6) GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME & EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31[ST] AUGUST 2021
| Note INCOMING RESOURCES Income resources from generated funds Interest received Incoming resources from charitable activities 2 TOTAL INCOMING RESOURCES RESOURCES EXPENDED Charitable activities 3 Governance costs 4 TOTAL RESOURCES EXPENDED NET MOVEMENT IN FUNDS TOTAL FUNDS BROUGHT FORWARD TOTAL FUNDS CARRIED FORWARD 8 |
Unrestricted Funds £ 5 712,432 _ 712,437 _ 649,093 28,939 _ 678,032 _ 34,405 68,129 _ 102,534 _ |
Restricted Funds £ - - _ - _ - - _ - _ - 236,209 _ 236,209 _ |
Total Funds 2021 £ 5 712,432 _ 712,437 _ 649,093 28,939 _ 678,032 _ 34,405 304,338 _ £338,743 _ |
Total Funds 2020 £ 19 653,625 _ 653,644 _ 612,274 30,071 _ 642,345 _ 11,299 293,039 _ £304,338 _ |
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All amounts derive from continuing activities.
There were no recognised gains or losses other than through the Statement of Financial Activities.
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GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee)
BALANCE SHEET
31[ST] AUGUST 2021
| Note £ FIXED ASSETS Tangible Assets 5 CURRENT ASSETS Debtors 6 14,692 Cash at Bank and in hand 92,169 _ 106,861 _ CREDITORS:Amounts falling due within one year 7 68,732 _ NET CURRENT ASSETS / (LIABILITIES) TOTAL ASSETS LESS TOTAL LIABILITIES FUNDS Unrestricted 8 Restricted 8 |
2021 £ £ 300,614 11,076 55,267 _ 66,343 _ 70,085 _ 38,129 _ £338,743 _ 102,534 236,209 _ £338,743 _ |
2020 £ 308,080 (3,742) _ £304,338 _ 68,129 236,209 _ £304,338 _ |
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The Accounts have been delivered in accordance with the provisions applicable to Companies subject to the Small Companies Regime.
The financial statements were approved and signed on behalf of the board on 27[th] May 2022.
........................................................ Director
A J Larkin
Chair of Trustees/Director
Charity Number: 1101914 Company Number: 04882693
(8)
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[ST] AUGUST 2021
1. ACCOUNTING POLICIES
a) Basis of preparing the financial statements
The financial statements have been prepared in accordance with the charities SORP (FRS 102) “Accounting and Reporting by charities applicable in the UK and Republic of Ireland” and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
b) Fund Accounting
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.
c) Tangible Fixed Assets
Tangible fixed assets are stated in the accounts at cost less deprecation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
| Motor Vehicles | - | 20% Straight Line |
|---|---|---|
| Plant and Machinery | - | 20% Straight Line |
| Property Improvements | - | 4% Straight Line |
| Freehold Property | - | 2% Straight Line |
d)
Incoming Resources
Grants and Local Authority Fees are credited to the Statement of Financial Activities in the year for which they are received.
Fees receivable and charges for services are accounted for in the year in which the service is provided.
e) Resources Expended
Resources expended are included in the Statement of Financial Activities on an accrual basis, inclusive of any value added tax which cannot be recovered. They are allocated to the particular activity to which they relate.
2.
| ANALYSIS OF INCOMING RESOURCES FROM CHARITABLE ACTIVITIES 2021 2020 £ £ Fees 631,718 532,557 Other Income 403 972 Insurance Claim 48,454 14,000 JRS Furlough Income 30,171 74,550 Small Business Grant - 25,000 Other Grant Income 1,686 6,546 _ __ £712,432 £653,625 _ ____ |
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(9) GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31[ST] AUGUST 2021
3. ANALYSIS OF RESOURCES EXPENDED
| 4. | Basis of Charitable Activities Allocation Teaching and care of children Wages Direct Foods and disposables Direct Training expenses and healthcare Direct Sundry Direct Activity Costs Direct Running costs Light, heat & power Direct Grounds maintenance Direct Premises expenses Direct Sundry expenses Direct Telephone, postage and stationery Direct Advertising Direct Travel and motor running Direct Equipment repairs Direct Insurance Direct Loss on disposal of motor vehicle Direct Bad debt provision Direct Computer Expenses Direct Administration Costs Depreciation Direct Bank charges and interest Direct Total charitable activities costs Governance costs Accountancy Direct Legal and professional Direct NET INCOMING RESOURCES Net incoming resources are stated after charging Accountancy Depreciation |
Charitable Activities £ 516,073 25,293 6,071 2,557 4,302 __ 554,299 _ 10,105 8,429 16,257 2,615 6,534 669 8,973 8,892 4,185 - - 5,489 72,148 20,872 1,774 22,646 649,093 6,540 22,399 28,939 ___ |
Governance Total Total Costs 2021 2020 £ £ £ - 516,073 484,319 - 25,293 24,021 - 6,071 5,333 - 2,557 2,905 - 4,305 3,516 __ _ - 554,299 520,094 - 10,105 8,376 - 8,429 7,638 - 16,257 15,734 - 2,615 2,725 - 6,534 5,844 - 669 427 - 8,973 10,618 - 8,892 8,260 - 4,185 3,851 - - 636 - - 2,480 - 5,489 4,080 - 72,148 70,669 - 20,872 19,424 - 1,774 2,087 - 22,646 21,511 - 649,093 612,274 - 6,540 6,350 - 22,399 23,721 - 28,939 30,071 2021 2020 £ £ 6,540 6,350 20,872 19,424 ___ |
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(10)
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31[ST] AUGUST 2021
| 5. 6. 7. |
TANGIBLE FIXED ASSETS Telephone Exchange Property Conversion Improvements £ £ Cost At 1stApril 2020 59,226 149,285 Additions - 4,980 Disposals - - __ _ At 31stAugust 2021 59,226 154,265 Depreciation At 1stApril 2020 29,414 42,417 Charge for the Year 2,369 5,808 On Disposals - - At 31stAugust 2021 31,783 48,225 Net Book Value At 31stAugust 2021 27,443 106,040 At 31stAugust 2020 29,812 106,868 ___ DEBTORS Trade Debtors Other Debtors and Prepayments CREDITORS:Amounts falling due within one Year Trade Creditors Other creditors & accruals Other Taxation and Social Security J Larkin Bank Overdraft |
Land & Buildings £ 239,376 - - _ 239,376 _ 83,387 4,788 - _ 88,175 _ 151,201 _ 155,989 _ |
Equipment Fixtures & Fittings £ 101,191 8,426 - _ 109,617 _ 87,040 7,592 - _ 94,632 _ 14,985 _ 14,151 _ |
Motor Vehicles Total £ £ 1,575 550,653 - 13,406 - - _ __ 1,575 564,059 _ _ 315 242,573 315 20,872 - - _ 630 263,445 _ 945 £300,614 _ 1,260 £308,080 _ 2021 2020 £ £ 8,469 5,570 6,223 5,506 £14,692 £11,076 15,345 13,042 10,513 5,965 6,161 218 611 47 36,102 50,813 £68,732 £70,085 ___ |
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(11)
GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31[ST] AUGUST 2021
8.
| MOVEMENT IN FUNDS At 01.09.20 £ Unrestricted funds 68,129 Restricted funds 236,209 _ Net assets at 31stAugust 2021 £304,338 _ |
Incoming Resources £ 712,437 - __ 712,437 ____ |
Outgoing At Resources 31.08.21 £ £ 678,032 102,534 - 236,209 _ _ 678,032 £338,743 _ _ |
At 31.08.21 |
|---|---|---|---|
9. RELATED PARTY TRANSACTIONS
It was agreed by the trustees that, with effect from the 1[st] April 2018, the related party balances shown with Gateway (Education & Childcare) Trust and Gateway Nurseries Limited should be written off. All nursery activities are conducted through Gateway (Education & Childcare) Trust Limited and the trustees are progressing ceasing the registration for the other two charities with the Charity Commission.
Included within creditors are expenses due to Mrs J Larkin, who is the wife of Mr A J Larkin, of £611. During this year Mrs A J Larkin was employed as the senior manager and paid remuneration of £33,965 in total covering the year.
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