ACORNS20AKS LIMITED (A Company limited by Guarantee- Reg.No.04536406) Registered Charity No. 1104861 ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 3151 March 2022
ACORNS20AKS LIMITED Contents Page Legal and Administrative details Report ofthe Trustees 3105 Independent Examiner's Report Statement of Financial Activities Balance Sheet Cash Flow Statement Notes to Ihe Financial Statements 10t016
ACORNS20AKS LIMITED Legal and admlnlstrative details status The organisation is a charitable company limited by guarantee, incorporated on 16 September 2002 and registered as a charity in August 2004. Governing document The Company was established under a memorandum of association which established the objects and powers of the charitable company and is govemed under ils articles of association. Company Number 04536406 Charity Number 1104861 Registered Office Peppermint Healthy Living Centre Franklin Way Croydon Surrey CRO 4YD DlrectorslTrustees 8everley Noble - Chair Judith Osakwe Amanda Tucker Chief Executive Lauraine Nicholson Company Secretary Gaynor Murphy Bankers HSBC plc 9 Wellesley Road Croydon. Surrey CR92AA Independent Examiners Palmer Mccarthy Suite 70, Caprtal Business Centre 22 Carlton Road. South Croydon, CR2 OBS
ACORNS20AKS LIMITED TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2022 Objectives and Activities Acorns 2 Oaks was originally set up as CRSSC Lld to provide childcare services to families within the Broad Green area as a result of the Broad Green Sure Start programme being operational in the area. The capital to build the Centres to deliver these services was an investment from Broad Green Sure Start. Canterbury Centre has operated as a community-based Day Nursery since June 2003. Peppermint Centre provided a Nursery & Pre-school from July 2005 until September 2014 when the provision then changed to a term-time Pre-school. Both sellings aim to provide quality and affordable childcare lo working parents living in the Broad Green area, supporting parents to access and sustain employment, and thereby furthering the Charity's purposes for the public benefit. The charity's strategy. in order to achieve ils aims and objectives, is to employ quality staff and maintain its facilities. The charity measures its success by the number of ¢hildren and families that make use of its services. A20 believes that a placemenl for a student or volunteer within our organisation is a valuable opportunity to build experience whilst learning about working wilhin this Sector. Equally, we appreciate the positive contribution that such committed and enthusiastic people can bring. INhilst it was not possible to accommodate students and volunteers during the last two years, it is anticipated that this will change with the pandemic Teslrictions now lifted. The Trustees have had regard lo the guidelines set out by the Charities Commission on Public Benef11 when reviewing is aims and objectives and in planning for the future. Achievements and Performance The year was again hindered by the pandemic, with nursery placements uptake remaining relatively low until the last quarter when restrictions were lifted. Our Nurseries remained open with our Nursery tearns working tirelessly to adhere to ever-changing regulations. Whilst funded placements, allending and waiting list, increased towards the year end, there were very few fee-paying placements in either Nursery. Best Start's ABCD project continued until December 2021, when the respective Local Aulhorily funding ceased. The service ran for five years, over which lime our Community Builders worked proactively within the Broad Green & Selhurst areas, assisting Connectors in the development of an array of projects and sustainable initiatives. We are incredibly proud of the community cohesion created from this service and intend to seek opportunitie8 to fund similar community development projects. Peppermint Youth Club reopened in June 2021 offering one WklY session for local young people. Hall hire remained low and most of the regular hirers did not relurn when reslriclions lifted. It is our immediate objective for the coming year lo refurbish and market our hire facilities as to attract regular useis and ad-hoc hirers.
Directors Responsibilities The directors are required by UK company law lo prepare the financial statements for each financial year, in accordance with applicable law and regLilations and in accordance with United Kingdom Generally Accepted Accounting Practice. Company law requires the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the statement of financial activity for that period. In preparing the financial statements the directors are required to.. il Select suitable accounling policies and then apply them con51slently ill Make judgtnents and accounting eslimales that are reasonable and prudent iii) Slate whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. and iv) Prepare the financial statements on the going Concern basis unless il is inappropriate to presume that the company wi11 continue in business The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and that enable them lo ensure that the finanoial statements comply with the Companies Act. The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevelllion aiid detection of fraud and other irregularities. Where appropriate, the directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. It is important to bear in mind that legislation in the United Kingdom governing the preparation and dissemiiialion of financial slalements may differ from legislation in other jurisdictions. This report has been prepared having taken advantage of the srnall companies exemption in the Companies Act 2006. On behalf of the Board Beverley Noble- Chair Date.. 12 August 2022
Flnancial Review The year ended 319t March 2022 resulted in a deficit of £53,761 (2021.. £102,160 deficill. This deficit is attributable to.. nursery placements remaining low with most placements being government funded and not fee paying * hall hire income remaining low due lo restrictions remaining in place until the 4 quarter Croydon Council Best Start ABCD funding ceased in December 2021 The only other income received was Service Charges from AT Medics (NHS Croydon) for use of the premises. The charity's reserves were used to support the loss in revenue, ensuring that the running costs could be met, and the aims and objectives of the charity were upheld. The charity's policy is to hold an adequate level of reserves in order lo meet future operational costs that may not be sufficiently covered by income. The charity had closing reserves on 31 $1 March 2022 of £159,866, of which £1,372 are restricled12021.' reserves of £213,627 of which £1,372 were reslricledl. The charity considers this level of reserves to be in line with its policy. The principal risk to the charity is a reduction lo the government free education and childcare funding, which is the charity's main sOL1r of income. The risk is mitigated by the charity seeking other income streams, such as the hiring of its hall to community groups. Plans for the Future Acorns 2 Oaks main objective for the coming year is lo.. + promote the nurseries in order to return to full capacity refurbish and market our hre facilities • re-open the Centres for the wide use amongst the community and seek opportunities and funding for a similar Asset 8ased Community Development Programme Structure, Governance and Management The governing document is detailed on the information page attached to these accounts. The company is governed by the Directors who are volunteers, as listed on the information page allached lo these accounts. The major risks to which the company is exposed to are reviewed regularly by the Directors and management, and systems have been put in place to mitigate those risks. Trustees are trained on their responsibilities initially on induction and periodically thereafter. The Board conlinues lo advertise for Trustees. The Trustees review and set the remuneration of key management personnel, having had regard to the recent performance of the charity when Carrying out the review.
ACORNS20AKS LIMITED INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2022 I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st M8rch 2022. Responsibilities and basis of report As the Charity's trustees (and also the directors of the company for the purposes of company lawl you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 20061'the 2006 ACV). Having satisfied myself that the accounts of the company are not required lo be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as carried out ur)der section 145 of the Charities Act 20111'lhe 2011 Act'l. In carrying out my examinatior) I have followed the Directions given by the Charity Commission under section 14515){bl of the 2011 Act. Independent examiner's statement Since the company'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 l am qualified to undertake the examination because l am member of the ICAEW, which is one of the listed bodies. I have completed my examination. I confirm that no mallers have come to rny attention in connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the company as required by section 386 ofthe 2006 Act., or 2. the accounts do not accord with those records,. or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'lrue and fair view, which is not a matter considered as part of an independent examination., or 4. the accounts 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 accordancewith the Financial Reporting Standard applicable In the UKand Republic of Ireland IFRS 1021. I have no concerns and have come across no other rnatters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts lo be reached. Peter Mills ACA CTA Independent Examiner Palmer Mccarthy Chartered Certified Accountants Suite 70, Capital Business Centre, 22 Carlton Road South Croydon, CR2 OBS
ACORNS20AKS LIMITED STATEMENT OF FINANCIAL ACTIVITIES IINCLUDING INCOME & EXPENDITURE ACCOUNTI For the year ended 31 March 2022 2022 2021 Incoming resources Unrestricted Restricted Funds Funds Total Total Charitable Activities - Note 3 Other Trading Activities - Note 4 Investment Income - Note 6 458,595 79,439 28 457,331 80.703 28 442,534 33,908 134 Total Incoming resources 538,062 538,062 476,576 Expenditure on Charitable Activities- Note 7 591,823 591,823 578,738 Total Expenditure 591,823 591,823 578,736 Net movement in funds {53,7611 153,7611 1102,160) Total funds brought fotward 212,255 1,372 213.627 315,787 Total funds carried fonmard 158,494 1,372 159.866 213,627
ACORNS20AKS LIMITED Company Regislralion number 04536406 BALANCE SHEET AS AT 31 March 2022 2022 2021 FIXED ASSETS Intangible asset- note 9 Tangible assets - note 10 CURRENT ASSETS Debtors and prepayments - note 11 Cash al bank and in hand 41,168 235,879 8.402 342,983 277.047 351.385 CURRENT LIABILrriES Creditors and accruals - note 12 117 181 137758 NET CURRENT ASSETS 159,866 213,627 Total assets less liabilities 159,866 213.627 Financed by.. Unreslricled funds - note 13 158,494 212,255 Reslricled funds - note 13 fj.372 1,372 Total funds 159,866 213,627 For the Financial Year ended 31 $1 March 2022 the company was enlilled lo exemption from audit under section 477 of the Companies Act 2006 relating lo small companies. No member of the company Inas deposited a notice, pursuant lo section 476, requiring an audit ol these financial statements under the requirements ol the Companies Acl 2006. The direGlors acknowledge their responsibility for ensuring the company keeps accounting records which comply with section 386 of the Act, and for preparing accounts which give a true and fair view of the slate of affairs of the company al the end of ils financial year, and of ils income and expenditure for the financial year in aacordance with sections 394 & 395, and which otherwise comply with the requirements of the Companies Act 2008 relating lo accounts, so far as applicable lo the company. These financial slalemenls have been prepared in accordance with the provisions applicable lo companies subject ID Ihe small companies regime within Part 15 of the Companies A¢1 2006, and in accordance with the Charities SORP 2019 IFRS1021 and were approved by the Trustee Board on 121h August 2022. Beverley Noble- Chair
ACORNS20AKS LIMITED STATEMENT OF CASH FLOWS For the year ended 31 March 2022 2022 2021 Net Cash Provided byl(Used inl operating activities {note 17) 1107,1321 139,0111 Cash Flows from investing activities Investment Income Purch28e of Fixed Assets 28 134 Cash Provided by (used inl investing activities 28 134 Increase (decrease) in cash and cash equivalents 8t the end of the year 1107,1041 138.8771 Cash and cash equivalents al the beginning of the year 342,983 381,860 Total cash and cash equivalents at the end of the year 235,879 342,983
ACORNS20AKS LIMITED Notes to the Financial Statements 1. Accounting Policie5 Company information The Company is a private company limited by guarantee and is incorporated in England and Wales under Company Number 04536406. The company is a registered charity under charity number 1104861. The company's principal activity and operations are that of providing pre-school education, childcare and youth services. The registered office address is Peppermint Healthy Living Centre, Franklin Way, Croydon, Surrey, CRO 4YD. al Basis of Accounling These 8ccounls have been prepared on a going concern basis tjnder the historical cost convention. modified lo include certain items at fair value. The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ire12nd {FRS102). The Charitable Company is a public benefit entity for the purposes of FRS102 and therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Slandard applicable in the UK and Republic of Ireland (The Charities SORP 201 g {FRS10211. the Companies Act 2006 and the Charities Act 2011. The financial slalements are prepared in pounds sterling which is the functional currency of the Company. Monetary arllounls in these financial statements are rounded lo the nearest £. bl Golng concern There were no material uncertainties related to events or conditions that may cast significant doubt upon the company's ability lo continue as a going concern. cl Incoming Resources Incoming Resources from Charitable Activities and Grants receivable are accounted for on an a¢¢ruals basis. All other income is accounted for on an as received basis. dl Resources Expended All expenditure is included in the accounts on an accruals basis el Amorlisalion of Goodwill The cost of Goo(bNiII was written off over 10 years. being the estimated useful economic life ofthe asset Tangible Fixed Assets Tangible Fixed Assets are staled al historical cost less accumulated depreciation. Depreciation is provided on the straight line basis al rates calculated to write off the cost of the relevant asset over their expected useful economic life. The Depreciation Rates used are as follows.. Fixtures, Fittings & Equipment 10
ACORNS20AKS LIMITED Notes to the Financial Statements (continued) gl Cash and cash equivalents Cash and cash equivalents include cash in hand and deposits held with banks. h) Recognition of liabilities Expenditure approved for payment bul not paid are recorded as liabilities in the balance sheet. Current liabilities consist of amounts expected lo be settled within 12 months from the balan sheet dale il Debtors Debtors are recorded al transaction price and are impaired where there is evidence that, as a result of one or more events that occurred after the origin21 recognition of the debtor, the estimated lulure cash flows have been affected. The impaiment loss is recognised in the Statement of Financial Activib'es. Il Fund accounting Funds held by the charity are either a. Unrestricted general funds these afft funds which can be used in accordance with the charitable objects at the discretion of the Trustees.. b. Reslricled funds these are funds that can only be used for particular reslricled purpose8 within the objects of the charity kl Aclimlies in furtheran of the Charities objectives comprises nursery fees to third parties, including fees funded by LocalAulhority. 11 Judgements and key sounes of estimation uncertainly. In the application of the company's accounting poli¢ies, the directors are required lo make judgements. eslimales and assumptions about the carrying amount of assets and liabililies that are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these eslimales. The eslimales 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 perlods where the revision affects both current and future periods. The following judgements lapart from those involving estimates} have the most significant effect on amounts recognised in the financi81 stalemenls.. The company makes an estimate of the a¢crual relating lo premises costs, included wlhin current liabilities Isee note 16 for the liability recognised in these financial slatemenlsl. The company makes an estimate of the re¢overable value of debtors. When assessing impairmenl of debtors, management considers Ihe ageing profile ol debtors and historical experience (see note 11 for the carrying value).
ACORNS20AKS LIMITED Notes to the Financial Statements 2. Nel Movement ill Funds Nel Movement in Funds is Staled after Charging 2022 2021 Operating lease expense Independenl Examination fees Amorlisalion Depreciation 1,815 2,448 1,815 2,400 3. Charitable Activities Income 2022 2021 Family services grant Free education funding Childcare placements Coronavirus job retention scheme grants Furdraising events 22,500 378,306 48,303 8,222 1,264 458 595 30,000 368,654 21,482 22,398 442.534 4. Other Trading Aclivilie8 Income 2022 2021 Income From Hall Hire Service Charges 55,156 24,283 79,439 9,625 24,283 33,908 12
ACORNS20AKS LIMITED Notes to the Flnancial Statements Icontinuedl 5. Staff Costs and numbers". The Costs incurred in respect of employees were.. 2022 2021 Salaries & Wages Social Security Costs Defined Contribution Pension Costs 457,560 20,222 7,049 484,831 450,175 18,775 6,774 475,724 No employee earned over £60,000 during the year under review. The average number of staff employed during the year was.. 2022 2021 Office & Adminislralion Direct Charitsble work Tot81 41 44 42 45 Key management personnel remuneration lotslled £146.42712021'. £138,245) 6. Investment Income 2022 2021 8ank Interest Received 28 134 7. Expenditure on Charitable Activities 2022 staff Costs Others 2021 Total Total Childcare Placements Establishment Costs Catering Educational Equipment Governance Costs Other 484,831 3,019 42,957 4,110 720 2,718 53,468 106 992 487,850 42,957 4,110 720 2,718 53,468 591,823 478,735 41,441 5,267 668 2,670 49,957 578,738 484,831 8. Corporation Tax The Company is a registered Charity and is not subject to Corporation Tax on ils aclivilies. 13
ACORNS20AKS LIMITED Notes to the Financial Statements Icontinuedl 9. Intangible Fixed Assets Goodwill Cost at 1st April 2021 and 31 st March 2022 15,000 Amortisation al 1 sl ApTiI 2021 Charge For the Year at 31 sl March 2022 15,000 1 S,000 Net Book Value at 31st March 2022 Net Book Value at 31 st March 2021 10. Tangible Fixed Assets Fixtuffts, Fillings & Equip. Cost al 1 sl April 2021 and 31 st March 2022 10,033 Depreciation al I sl April 2021 Charge for the Year at 31 sl March 2022 10,033 10,033 Nel Book Value at 31 st MarGh 2022 Net Book Value at 31 st March 2021 11. Debtors & Prepayments 2022 2021 Debtors arising from Charitable activities Debtors arising from other trading activities Prepayments 32,531 5,500 3,137 7,018 1.384 8,402 12. Creditors & Accruals 2022 2021 Creditors arising from Charitable activities Taxes and Social Security Accruals 4,228 9,318 103,635 117,181 45,481 6,887 85,390 137,758 14
ACORNS20AKS LIMITED Notes to tha Financial Statements (continued) 13. Movement in Funds Balance Income Expenditure Balan 1 Apr 2021 31 Mar 2022 Unreslricled Funds 212,255 538,062 1591,8231 158,494 Restricted Funds Pepperrninl Grant Crosfield Grant 42 1,330 1,372 42 1,330 1,372 Total 213,627 538,062 1591.8231 159.866 The Pèppermint Grant and the Croslield Grant are for the purpose of future capital expendituie. 14. Summary of assets and liabilities bebNeen funds Unrestricted Restricted Funds Funds Totsl Debtors Cash Creditors Nel Assets 41,168 234.507 1117,1811 158.494 41,168 235,879 1117,1811 159,866 1,372 1.372 15. Trustees Remuneration and Related Party Transactions No member of the Management Committee or Trustees received any remuneration during the year. Where trustees of the company have children placed at the nursery they pay the full nursery fee for that placement. No Trustee was reimbursed expenses by the charity. There were no related party transactions that require disclosure.
ACORNS20AKS LIMITED Notes to the Financial Statements Icontinuedl 16. Conlingenl Liabilities At 31 sl March 2022 the company had no contingent liabilities or capital commitments not provided for in these accounts. Creditors includes £98,213 12021: £78,763) provided as a Conlingenl liability in respect of service charges that have not been charged lo the company by Croydon Council. Reconciliation of nel movements in funds to net cash flow from operating activities 2022 2021 Nel Movement in Funds Deduct Investment Income Oecrease Ilncreasel in Debtors Increase (Decrease) in Creditors Nel Cash Provided byllused inl operating activities 153,7611 128} 132.766) 2Q,577 1107,1321 1102,1601 11341 9,876 53,406 139,0121 18. An81ysis of changes in nel debl Al 1 April 2021 Cash flows At 31 March 2022 Cash and cash e Cash uivalenls 342,983 1107,1041 235,879 The company has no borrowings. 19. Operating Lease Commitments The company has operating lease commitments in relation to the rental of the premises used in the furtherance of ils aclivilies, as follows.. Future minimum operating lease payments 2022 2021 Within one year Between two and five years In over five years 1,815 7,258 24,799 33,872 1,815 7,258 26,614 35,687 16
ACORNS20AKS LIMITED The following page does not form parl the Slatulory Financial Slalemenls
ACORNS20AKS LIMITED INCOME & EXPENDITURE ACCOUNT For the year ended 31 March 2022 2022 2021 Income Receivable Family services grant Free education funding Child¢are fees Bank interest Coronavirus job retention scheme grants Fundraising events Hall hire Service char 22,500 378,306 48,303 28 8,222 1,264 55,156 24,283 30,000 368,654 21,482 134 22,398 9,625 24,283 es Total Income receivable 538,062 476,576 Premises costs Staff salaries Employerfs Nl Pensions Staff training and information Staff DBS Checks Catering Children social acliviliesleducalional Cleaning and domestic supplies Clinical waste Expendable equipment Insuran Office supplies Telephone, postage, fax and intemet Bank charges Sundry expenses Subscriptions OFSTED registration IT Maintenance & Software Independent ExaTNinalion Fees Professional fees 42,957 457,560 20,222 7,049 2,544 475 4,110 3,265 28,716 3,508 720 3,159 673 6,464 569 76 415 270 6,610 2.448 13 41,441 450,175 18,775 6,774 2,536 475 5,267 2,199 25,040 3,325 668 3,159 1,276 6,653 484 502 504 270 6,800 2,400 13 Total admin & overhead ex enses 591.823 578,736 Sur lus/ Deficit for the ear 53,761 102,180