**Charity Registration No. 1102092**
**Company Registration No. 04732961 (England and Wales)**
## **WOODEN TOPS DAY NURSERY LTD**
# **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2021**
## **WOODEN TOPS DAY NURSERY LTD**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mrs J Lloyd|
|---|---|
||Mrs A Tindale|
||Ms C Waja|
|**Charity number**|1102092|
|**Company number**|04732961|
|**Registered office**|Park Lane Centre|
||Park Lane|
||Woodside|
||Telford|
||Shropshire|
||United Kingdom|
||TF7 5QZ|
|**Independent examiner**|Azets Audit Services|
||5 - 7 Beatrice Street|
||Oswestry|
||Shropshire|
||United Kingdom|
||SY11 1QE|
## **WOODEN TOPS DAY NURSERY LTD**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 13|
## **WOODEN TOPS DAY NURSERY LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The trustees present their report and financial statements for the year ended 31 March 2021.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association incorporated 13 April 2003 , the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Standard for Smaller Entities published on 16th July 2014.
## **Objectives and activities**
The charity's objects are to enhance the development and education of children, primarily under statutory school age. The organisation offers play, education, care facilities, training courses and encourages the study of the needs of children and their families and promotes public interest in and recognition of their needs. It instigates and adheres to the aims and objectives of the Pre-School Learning Alliance.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
Wooden Tops Day Nursery is situated within a multi use complex Children's Centre, the nursery operates from a self contained area of the building, using five purpose built rooms which accommodates our 0-2's (room 1), we currently have one separate room that accommodates our 2-3's (room 2) and one room allocated to our Pre-School children and one room for the upcoming 3 year olds, getting them ready for preschool.
During the year the Charity has continued to run a day nursery whilst dealing with the impact of Covid 19 on staffing and attendance.
A voluntary Board of Directors consisting of a variety of professionals and former parents are responsible for the running of Wooden Tops and all of which contribute effectively within specified areas of their experiences and knowledge.
## **Financial review**
It is the policy of the charity to increase reserves, so that in the event of an income drop the charity can continue operating until other funds are secured.
There has been a small surplus on the unrestricted funds of the Charity which largely cover the deficit suffered in the 2020 year.
With both employment and energy costs increasing with no commensurate rise in income the reserves of the Charity may be called upon to support the Charity in the short term. The trustees believe that the current level of reserves are sufficient for the charity as it stands but are constantly assessing the required level due to the ever changing regulatory and financial environment it finds itself in.
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
## **Structure, governance and management**
The charity is controlled by its governing document, the memorandum and articles of association incorporated 13th April 2003, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mrs J Lloyd
Mrs A Tindale Ms C Waja Mrs L Johnston (Resigned 24 November 2021)
- 1 -
## **WOODEN TOPS DAY NURSERY LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
People who are interested in the charity are recruited by word of mouth or through other trustees. Their interest in the charity is discussed with them and existing trustees and are appointed if deemed suitable.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' r eport was approved by the Board of Trustees.
..............................
## **Mrs A Tindale**
Trustee Dated: .........................
- 2 -
## **WOODEN TOPS DAY NURSERY LTD**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF WOODEN TOPS DAY NURSERY LTD**
I report to the trustees on my examination of the financial statements of Wooden Tops Day Nursery Ltd (the charity) for the year ended 31 March 2021.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Azets Audit Services
5 - 7 Beatrice Street Oswestry Shropshire SY11 1QE United Kingdom
Dated: .........................
- 3 -
## **WOODEN TOPS DAY NURSERY LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
-
3,232
Charitable activities
**4**
269,386
-
Investments
**5**
284
-
Other income
**6**
19,756
-
**Total income**
289,426
3,232
**Expenditure on:**
Charitable activities
**7**
281,261
-
**Net income/(expenditure)**
**for the year/**
**Net movement in funds**
8,165
3,232
Fund balances at 1
April 2020
408,442
9,889
**Fund balances at 31**
**March 2021**
416,607
13,121|**Total**Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
**£**
**£**
3,232
-
-
269,386
292,103
-
284
668
-
19,756
-
-
292,658
292,771
-
281,261
303,074
-
11,397
(10,303)
-
418,331
418,745
9,889
429,728
408,442
9,889|Total
2020
**£**
-
292,103
668
-
292,771
303,074
(10,303)
428,634
418,331|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 4 -
## **WOODEN TOPS DAY NURSERY LTD**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**14**
Unrestricted funds
Designated funds
**15**
General unrestricted funds|**2021**
**£**
5,897
453,398
459,295
(33,579)
125,000
291,607|**£**
4,012
425,716
429,728
13,121
416,607
429,728|**2020**
**£**
-
444,304
444,304
(30,280)
125,000
283,442|**£**
4,307
414,024
418,331
9,889
408,442
418,331|
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on .........................
..............................
Mrs A Tindale **Trustee**
## **Company Registration No. 04732961**
- 5 -
## **WOODEN TOPS DAY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **Charity information**
Wooden Tops Day Nursery Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Park Lane Centre, Park Lane, Woodside, Telford, Shropshire, TF7 5QZ, United Kingdom.
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 Expenditure**
- 6 -
## **WOODEN TOPS DAY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
**(Continued)**
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Building renovations 2% on cost Fixtures, fittings & equipment 20% on cost Computers 20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 7 -
## **WOODEN TOPS DAY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Restricted**|Total|
|---|---|---|
||**funds**||
||**2021**|2020|
||**£**|£|
|Graduate leader support fund|3,232|-|
- 8 -
## **WOODEN TOPS DAY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**4**|**Charitable activities**|||
|---|---|---|---|
|||**Grant**|
**Grant**|
|||**income**|
**income**|
|||**2021**|
**2020**|
|||**£**|
**£**|
||Revenue grants|232,676|
226,590|
||Government grants|5,164|
2,322|
||Other income|31,546|
63,191|
|||269,386|
292,103|
|**5**|**Investments**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**2021**|2020|
|||**£**|£|
||Interest receivable|284|668|
|**6**|**Other income**|||
|||**Unrestricted**|Total|
|||**funds**||
|||**2021**|2020|
|||**£**|£|
||JRS Grants|19,756|-|
- 9 -
## **WOODEN TOPS DAY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **7 Charitable activities**
||**Charitable**|
**Charitable**|
|---|---|---|
||**Expenditure**|
**Expenditure**|
||**2021**|
**2020**|
||**£**|
**£**|
|Staff costs|196,827|
202,741|
|Depreciation and impairment|297|
335|
|Rent|56,012|
56,901|
|Child education & development|2,098|
4,155|
|Telephone|1,407|
1,160|
|Postage & stationery|3,437|
4,193|
|Advertising|1,331|
6,655|
|Repairs & renewals|2,411|
330|
|Household & cleaning|2,442|
1,545|
|Catering|7,822|
11,328|
|Sundry expenses|1,836|
960|
|Staff welfare & training|27|
3,050|
|Other charitable expenditure|5,314|
9,721|
||281,261|
303,074|
||281,261|
303,074|
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year .
There were no trustees' expenses paid for the year nor for the year ended 31 March 2020.
## **9 Employees**
The average monthly number of employees during the year was:
|Childcare
Administration
Total
**Employment costs**
Wages and salaries
Social security costs|**2021**
**Number**
19
3
22
**2021**
**£**
191,121
3,319|**2020**
**Number**
21
3
24
**2020**
**£**
196,809
3,785|
|---|---|---|
- 10 -
## **WOODEN TOPS DAY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**9**|**Employees**||||**(Continued)**|
|---|---|---|---|---|---|
|||||196,827|202,741|
||There were no employees whose annual remuneration was £60,000||or more.|||
|**10**|**Taxation**|||||
||The charity is exempt from corporation tax on its charitable activities.|||||
|**11**|**Tangible fixed assets**|||||
|||**Building**|**Fixtures,**|**Computers**|**Total**|
|||**renovations**|**fittings &**|||
||||**equipment**|||
|||**£**|**£**|**£**|**£**|
||**Cost**|||||
||At 1 April 2020|4,574|28,909|1,039|34,522|
||At 31 March 2021|4,574|28,909|1,039|34,522|
||**Depreciation and impairment**|||||
||At 1 April 2020|1,366|27,809|1,039|30,214|
||Depreciation charged in the year|64|232|-|296|
||At 31 March 2021|1,430|28,041|1,039|30,510|
||**Carrying amount**|||||
||At 31 March 2021|3,144|868|-|4,012|
||At 31 March 2020|3,208|1,099|-|4,307|
|**12**|**Debtors**|||||
|||||**2021**|**2020**|
||**Amounts falling due within one year:**|||**£**|**£**|
||Other debtors|||4,397|-|
||Prepayments and accrued income|||1,500|-|
|||||5,897|-|
|**13**|**Creditors: amounts falling due within one year**|||||
|||||**2021**|**2020**|
|||||**£**|**£**|
||Other taxation and social security|||583|283|
||Accruals and deferred income|||32,996|29,997|
|||||33,579|30,280|
- 11 -
**WOODEN TOPS DAY NURSERY LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **14 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
||||**Movement**||**Movement**||
|---|---|---|---|---|---|---|
||||**in funds**||**in funds**||
|||**Balance at**|**Incoming**|**Balance at**|**Incoming**|
**Balance at**|
||**1**|**April 2019**|**resources**|**1 April 2020**|**resources**|
**31 March 2021**|
|||**£**|
**£**|**£**|
**£**|
**£**|
|Graduate Leader Fund||9,889|
-|9,889|
3,232|
13,121|
## **Graduate leader fund**
This fund is restricted for use in the further training of graduates.
## **15 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
||||**Movement**||**Movement**||
|---|---|---|---|---|---|---|
||||**in funds**||**in funds**||
|||**Balance at**|**Incoming**|**Balance at**|**Incoming**|
**Balance at**|
||**1**|**April 2019**|**resources**|**1 April 2020**|**resources**|
**31 March 2021**|
|||**£**|
**£**|**£**|
**£**|
**£**|
|Close down fund||125,000|
-|125,000|
-|
125,000|
|||125,000|
-|125,000|
-|
125,000|
The close down fund represents funds designated for the graceful shut down of the nursery should the need arise. The designated funds represents an estimate of the wage costs, redundancy payments, lease and contractual obligations and associated costs of shut down.
## **16 Analysis of net assets between funds**
|**Unrestricted**
**Restricted**
**2021**
**2021**
**£**
**£**
Fund balances at 31
March 2021 are
represented by:
Tangible assets
4,012
-
Current assets/
(liabilities)
412,595
13,121
416,607
13,121|**Total**Unrestricted
Restricted
**2021**
2020
2020
**£**
£
£
4,012
4,307
-
425,716
404,135
9,889
429,728
408,442
9,889|Total
2020
£
4,307
414,024
418,331|
|---|---|---|
- 12 -
## **WOODEN TOPS DAY NURSERY LTD**
# **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **17 Related party transactions**
There were no disclosable related party transactions during the year (2020 - none) .
- 13 -