## GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee) ## FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022 ## 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 2022 |CONTENTS:
Company Information
Trustees’ Annual Report
Accountants Report
Statement of Financial Activities
Balance Sheet
Notes to the Accounts|PAGE| |---|---| ||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 2022 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 2022. 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 Mrs H J Pearson Mr D Squire 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: - Duties - Responsibilities - Aspirations of the Nursery - Meetings (timings / content) - 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 2022 ## **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: - Select suitable accounting policies and then apply them consistently; - Observes the methods and principles in the Charities SORP; - Make judgements and estimates that are reasonable and prudent; - State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - 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: - There is no relevant 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 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. (3) GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED ## TRUSTEES’ ANNUAL REPORT ## FOR THE YEAR ENDED 31[ST] AUGUST 2022 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. ## **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 2022 amounted to £604,500 with total expenditure of £637,068, creating a deficit for the year of £32,568. Whilst disappointing, this does reflect a period of further recovery from the COVID-19 pandemic with no further support in respect of the Government’s JRS (£30,171 in 2021) or further insurance claims (£48,454 in 2021). Normal fee income reduced in this financial year to £597,583 compared with £631,718 for the twelve months to 31[st] August 2021 but a fee increase is already planned for the forthcoming new financial year. In terms of the balance sheet, fixed assets at the end of the new financial year to 31[st] August 2022 stood at £308,676, up from £300,614 at the 2021 financial year end. These fixed assets comprise primarily land and buildings. Cash balances totalled £60,062 decreasing from £92,169 as at 31[st] August 2021. Healthy cash balances continue to be held in the business savings account for liquidity purposes. Staffing costs continue to remain the main overhead at £488,493 and whilst this has reduced from £516,073 in the 202021 financial year, it does represent c. 77% of total costs compared with 75% in the previous financial year and will therefore need monitoring during the new financial year. Pleasingly however, other costs were again broadly in line with the previous year and the introduction of monthly management accounts in the new financial year will enable us to monitor this more closely and regularly, as well as overall financial performance. Recruitment continues to present a challenge with a number of staff changes again during the year but the current cohort provides a good mix of experience and is being well led by our two main managers Sarah Reed and Elaine Talbot, who continue to work well together and have established excellent relationships with parents, as have the staff themselves. Numbers of children attending the nursery remain healthy where we are operating generally at full capacity, and we also continue to have a healthy waiting list and daily enquiries. We also saw the resignation of a further Trustee, Tim Bryant, for personal reasons and would like to record our thanks to Tim for his long-standing support. We will seek to recruit a replacement during the new financial year and hopefully appoint additional Trustees in due course. The priority for the forthcoming financial year will be long-awaited investment in the land and premises, with new fencing in the play areas and completion of the double decker bus project in particular. New metal security perimeter fencing was erected during the current financial year which was funded from reserves (cost c. £14,000) and we were successful with a bid for a grant from Herefordshire County Council for £3,000 with which we were able to construct a new wooden shelter for our forest school project which will also continue to be developed during the new financial year. The Trustees would once again like to thank all management and staff for their continued commitment and support and we look forward to providing a further update at the end of the next financial year. (4) GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED ## TRUSTEES’ ANNUAL REPORT ## FOR THE YEAR ENDED 31[ST] AUGUST 2022 ## **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: - There is no relevant audit information of which the Company’s accountants are unaware; and - 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 26[th] June 2023 (5) GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED ## ACCOUNTANTS REPORT ## FOR THE YEAR ENDED 31[ST] AUGUST 2022 ## **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 2022 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: - examine the accounts under section 145 of the 2011 Act; - 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 - 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: - which gives me reasonable cause to believe that, in any material respect, the requirements: - (a) to keep accounting records in accordance with section 386 of the Companies Act 2006, and - (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 - 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 26[th] June 2023 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 2022 |













|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
£
9
604,491
_______
604,500
_______
610,531
26,537
_______
637,068
_______
(32,568)
102,534
_______
69,966
_______|Restricted
Funds
£
-
-
_______
-
_______
-
-
_______
-
_______
-
236,209
_______
236,209
_______|Total Funds
2022
£
9
604,491
_______
604,500
_______
610,531
26,537
_______
637,068
_______
(32,568)
338,743
_______
£306,175
_______|Total Funds
2021
£
5
712,432
________
712,437
________
649,093
28,939
_______
678,032
_______
34,405
304,338
_______
£338,743
_______| |---|---|---|---|---|---| All amounts derive from continuing activities. There were no recognised gains or losses other than through the Statement of Financial Activities. (7) ## GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED ## (A Company limited by guarantee) ## BALANCE SHEET ## 31[ST] AUGUST 2022 |




|Note
£
FIXED ASSETS
Tangible Assets
5
CURRENT ASSETS
Debtors
6
10,736
Cash at Bank and in hand
60,062
_______
70,798
_______
CREDITORS:Amounts falling due
within one year
7
73,299
_______
NET CURRENT (LIABILITIES) / ASSETS
TOTAL ASSETS LESS TOTAL LIABILITIES
FUNDS
Unrestricted
8
Restricted
8|2022
£
£
308,676
14,692
92,169
_______
106,861
_______
68,732
_______
(2,501)
_______
£306,175
_______
69,966
236,209
_______
£306,715
_______|2021
£
300,614
38,129
_______
£338,743
_______
102,534
236,209
_______
£338,743
_______| |---|---|---|---| 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 26[th] June 2023. ........................................................ 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 2022 ## 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
2022
2021
£
£
Fees
597,583
631,718
Other Income
3,908
403
Insurance Claim
-
48,454
JRS Furlough Income
-
30,171
Small Business Grant
3,000
-
Other Grant Income
-
1,686
_______
______
£604,491
£712,432
_______
______| |---|---| (9) GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee) ## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) ## FOR THE YEAR ENDED 31[ST] AUGUST 2022 ## 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
£
488,493
24,088
906
2,338
5,748
______
521,573
______
10,777
6,541
8,689
4,860
5,254
392
10,958
7,222
4,504
-
-
3,738
______
62,935
______
23,825
2,198
______
26,023
______
610,531
______
-
-
______
-
______|Governance
Total
Total
Costs
2022
2021
£
£
£
-
488,493
516,073
-
24,088
25,293
-
906
6,071
-
2,338
2,557
-
5,748
4,305
______
______
______
-
521,573
554,299
______
______
______
-
10,777
10,105
-
6,541
8,429
-
8,689
16,257
-
4,860
2,615
-
5,254
6,534
-
392
669
-
10,958
8,973
-
7,222
8,892
-
4,504
4,185
-
-
-
-
-
-
-
3,738
5,489
______
______
______
-
62,935
72,148
______
______
______
-
23,825
20,872
-
2,198
1,774
______
______
______
-
26,023
22,646
______
______
______
-
610,531
649,093
______
______
______
6,890
6,890
6,540
19,647
19,647
22,399
______
______
______
26,537
26,537
28,939
______
______
______
2022
2021
£
£
6,890
6,540
23,825
20,872
______
______| |---|---|---|---| ||||| (10) ## GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee) ## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) ## FOR THE YEAR ENDED 31[ST] AUGUST 2022 |5.
6.
7.|TANGIBLE FIXED ASSETS Telephone
Exchange
Property
Conversion Improvements
£
£
Cost
At 1stApril 2021
59,226
154,265
Additions
-
26,450
Disposals
-
-
______
______
At 31stAugust 2022
59,226
180,715
______
______
Depreciation
At 1stApril 2021
31,783
48,225
Charge for the Year
2,369
6,866
On Disposals
-
-
______
______
At 31stAugust 2022
34,152
55,091
______
______
Net Book Value
At 31stAugust 2022
25,074
125,624
______
______
At 31stAugust 2021
27,443
106,040
______
______
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
_______
88,175
4,788
-
_______
92,963
_______
146,413
_______
151,201
_______|Equipment
Fixtures &
Fittings
£
109,617
5,437
-
_______
115,054
_______
94,632
9,487
-
_______
104,119
_______
10,935
_______
14,985
_______|Motor
Vehicles
Total
£
£
1,575
564,059
-
31,887
-
-
_______
______
1,575
595,946
_______
______
630
263,445
315
23,825
-
-
_______
______
945
287,270
_______
______
630
£308,676
_______
______
945
£300,614
_______
______
2022
2021
£
£
5,063
8,469
5,673
6,223
______
______
£10,736
£14,692
______
______
4,426
15,345
18,795
10,513
7,808
6,161
165
611
42,105
36,102
______
______
£73,299
£68,732
______
______| |---|---|---|---|---| (11) GATEWAY (EDUCATION & CHILDCARE) TRUST LIMITED (A Company limited by guarantee) ## NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) ## FOR THE YEAR ENDED 31[ST] AUGUST 2022 ## 8. |MOVEMENT IN FUNDS
At
01.09.21
£
Unrestricted funds
102,534
Restricted funds
236,209
_______
Net assets at 31stAugust 2022
£338,743
_______|Incoming
Resources
£
604,500
-
______
604,500
______|Outgoing
At
Resources
31.08.22
£
£
637,068
69,966
-
236,209
_______
_______
637,068
£306,175
_______
_______|At
31.08.22| |---|---|---|---| ## 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 £165. During this year Mrs A J Larkin was employed as the senior manager and paid remuneration of £39,389 in total covering the year. Included within property improvement costs this year is a total of £13,200 payment for services to Daniel Squire Ltd, a company operated by one of the trustees Mr D. Squire. (12)