2022-08-31-accounts

Company Registration Number: 04176113 Charity Registration Number: 1113518

Green Lane Nursery and Child Care Centre Financial Statements For the Year Ending 31 August 2022

JANE ASCROFT ACCOUNTANCY LIMITED

Chartered Accountants Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XP

Green Lane Nursery and Child Care Centre

Financial Statements

Year Ended 31 August 2022

	Page
Trustees' Annual Report (Incorporating the Director's Report)	1
Independent Examiner's Report to the Trustees	5
Statement of Financial Activities (Including Income and Expenditure Account)	6
Statement of Financial Position	7
Notes to the Financial Statements	8
The Following Pages Do Not Form Part of the Financial Statements
Detailed Statement of Financial Activities	16

Green Lane Nursery and Child Care Centre

Trustees' Annual Report (Incorporating the Director's Report)

Year Ended 31 August 2022

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 August 2022.

Objectives and Activities

Objects

The objects of the charity are to advance education and support family life by aiding the personal development of children and families in the district of Teesdale, County Durham and in particular by the provision of pre-school education and care.

Careful consideration has been given to the Charity Commission's general guidance on public benefit and in particular its guidance on advancing education and fee charging.

Aims

Our aim is to provide first class childcare to fit into parents' work patterns so that they can be assured that their children are safe, secure and happy, enjoying a wide range of activities.

Activities and Strategy

Children from the age of 6 weeks are accommodated in our all day care facility; those aged 3 to 4 years are educated in the pre-school nursery with the opportunity of joining the reception class of Green Lane Church of England Primary School in the September of the year when they will be 5 years old.

The nursery is aiming to achieve the following:

• maintain child numbers;

• be consistently sustainable;

• keep highly qualified and motivated staff, and

• have the ability to purchase quality equipment.

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Green Lane Nursery and Child Care Centre

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 August 2022

Achievements and Performance

This year has seen an exciting time as we emerged out of the Covid pandemic and were encouraged to return to some form of normality. The staff have shown enormous resilience, courage and empathy to bring the business forward, all credit must go to Mel and Jemma for mentoring the staff and steering the business onwards.

I wish to express my thanks to the staff team we have at the Nursery, they are the testament to the outstanding setting we have. They strive to show care and compassion set alongside professionalism that pours out of every corner of the setting. This is shown by again being in the strong position of having a waiting list to enter the nursery.

Whilst the day to day running of the Nursery is taken care of by our great staff, overseeing such a business as ours must have people with the foresight, vision and enthusiasm to make it succeed along with making difficult and sometimes unwanted decisions, thankfully I am proud to say I am part of a small team that has the diversity to challenge and the empathy to understand the wider plan. I personally thank all Directors for their own contributions to the Nursery. Due to not having a clerk still, my thanks must go to Sarah who has multi tasked through the meetings to produce the minutes in a professional manner. Having had some Directors make the decision to leave us, notably a long-standing director from our board, we will look this coming year to strengthen our board.

We have been ably assisted by our accountant, Jane Ascroft, who has steered us through the finances of a business such as ours seamlessly. Our aim is to have a thriving business for years to come, but financial challenges are coming at us from all sides, rising living wage costs, running costs, and maintaining competitive fees for parents is a fine balance which we continue deal with on an annual basis.

Numbers at the Nursery have remained steady throughout the year, with almost 100 children spread across the rooms, with a further 50 children attending either before or after school clubs run by the staff.

Jemma as Business Manager has managed to show improvement in this year's accounts. Income increased from 2021 mainly due to fee rises. Expenditure also increased from 2021, due mainly to the rise in our salary costs to meet Living Wage rises and maintaining being a competitive employer, albeit not as steeply as other businesses. Despite the expenditure increase we did finish the year with a profit to carry forward, something that will allow us to reinvest back into the business in this next financial year.

With the positive outlook of the leadership team, we feel that we are addressing any concerns for the future of the business. With a strong board of Directors and excellent staff, we are working to continue to offer the 'Outstanding' level of care, attention to detail and dedication needed to operate a great Nursery.

Financial Review

Green Lane Nursery and Childcare Centre achieved income of £461,944 during the year (2021 - £417,940). Total expenditure was £418,062 (2021 - £395,349) giving a surplus OF £43,882 (2021 - surplus of £22,591).

At 31st August 2022 net assets totalled £257,366 (2021 - £213,484).

Reserves Policy

The Directors have agreed a reserves policy to cover 3 months of costs and redundancies which amounts to approximately £100,000. A fundraising account is held with any money raised earmarked for new equipment and the improvement of the fabric of the nursery

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Green Lane Nursery and Child Care Centre

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 August 2022

Structure, Governance and Management

Nature of the governing document

Green Lane Nursery & Childcare Centre is a charitable company limited by guarantee, incorporated on 9th March 2001 and is governed by its Memorandum and Articles of Association.

Management

The policy and general management of the affairs of the nursery are directed by the trustees. The day-to-day management of the nursery is carried out by the manager.

Recruitment and appointment of trustees

Trustees are recruited with a view to sound experience and professional expertise. Appointment is conditional on the approval of the Trustees generally.

Reference and Administrative Details

Registered charity name	Green Lane Nursery and Child	Care Centre
Charity registration number	1113518
Company registration number	04176113
Principal office and registered	Green Lane
office	Barnard Castle
	County Durham
	DL12 8LG
The Trustees
	Nicola Linsley	(Retired 24 January 2022)
	Fiona Lovatt	(Retired 24 January 2022)
	Iain Brown
	Sarah Hamilton
	Abigail Cone	(Retired 24 January 2022)
	David Ewart
	Rachel Watson	(Retired 23 March 2022)
	Anthony Mawer	(Appointed 24 June 2022)
Independent Examiner	Jane Ascroft FCA MA (Cantab)
	Enterprise House
	Harmire Enterprise Park
	Barnard Castle
	County Durham
	DL12 8XP

Small Company Provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

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Green Lane Nursery and Child Care Centre

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year Ended 31 August 2022

The trustees' annual report was approved on 21 March 2023 and signed on behalf of the board of trustees by:

Iain Brown Trustee

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Green Lane Nursery and Child Care Centre

Independent Examiner's Report to the Trustees of Green Lane Nursery and Child Care Centre

Year Ended 31 August 2022

I report to the trustees on my examination of the financial statements of Green Lane Nursery and Child Care Centre ('the charity') for the year ended 31 August 2022.

Responsibilities and Basis of Report

As the trustees of the company (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 accounts of the company 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 accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the 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 the Institute of Chartered Accountants in England and Wales (ICAEW), 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:

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 accounts to be reached.

Jane Ascroft FCA MA (Cantab) Independent Examiner

Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XP

21 March 2023

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Green Lane Nursery and Child Care Centre

Statement of Financial Activities (including income and expenditure account)

Year Ended 31 August 2022

		2022		2021
		Unrestricted
		fundsTotal funds		Total funds
	Note	£	£	£
Income and endowments
Charitable activities	5	461,030	461,030	403,889
Investment income	6	8	8	29
Other income	7	906	906	14,022
		─────────	─────────	─────────
Total income		461,944	461,944	417,940
		═════════	═════════	═════════
Expenditure
Expenditure on charitable activities	8,9	418,062	418,062	395,349
		─────────	─────────	─────────
Total expenditure		418,062	418,062	395,349
		═════════	═════════	═════════
		─────────	─────────	─────────
Net income and net movement in funds		43,882	43,882	22,591
		═════════	═════════	═════════
Reconciliation of funds
Total funds brought forward		213,484	213,484	190,893
		─────────	─────────	─────────
Total funds carried forward		257,366	257,366	213,484
		═════════	═════════	═════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 8 to 14 form part of these financial statements.

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Green Lane Nursery and Child Care Centre

Statement of Financial Position

31 August 2022

		2022		2021
	Note	£	£	£
Fixed Assets
Tangible fixed assets	14		30,117	15,214
Current Assets
Debtors	15	14,014		19,149
Cash at bank and in hand		248,684		198,687
		─────────		─────────
		262,698		217,836
Creditors: amounts falling due within one year	16	35,449		19,566
		─────────		─────────
Net Current Assets			227,249	198,270
			─────────	─────────
Total Assets Less Current Liabilities			257,366	213,484
			─────────	─────────
Net Assets			257,366	213,484
			═════════	═════════
Funds of the Charity
Unrestricted funds			257,366	213,484
			─────────	─────────
Total charity funds	18		257,366	213,484
			═════════	═════════

For the year ending 31 August 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• 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;

• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 21 March 2023, and are signed on behalf of the board by:

Iain Brown Trustee

David Ewart Trustee

The notes on pages 8 to 14 form part of these financial statements.

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Green Lane Nursery and Child Care Centre

Notes to the Financial Statements

Year Ended 31 August 2022

1. General Information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Green Lane, Barnard Castle, County Durham, DL12 8LG.

2. Statement of Compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting Policies

Basis of Preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investments measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

The entity is a Public Benefit Entity.

Going Concern

There are no material uncertainties about the charity’s ability to continue.

Judgements and Key Sources of Estimation Uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Trustees consider that there are no significant judgements or estimates affecting these financial statements.

Fund Accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the purposes of the charity. Unrestricted funds include a revaluation reserve representing the restatement of investment assets at market values.

Designated funds are unrestricted funds earmarked by the trustees for specific purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor.

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Green Lane Nursery and Child Care Centre

Notes to the Financial Statements (continued)

Year Ended 31 August 2022

3. Accounting Policies (continued)

Income

All income is included in the statement of financial activities when the charity is entitled to the income, any performance related conditions attached have been met or are fully within the control of the charity, the income is considered probable and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Income from fees and local authority funding is accounted for when earned.

Investment income is included when receivable.

Expenditure

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

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

Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis.

Tangible Assets

Fixed assets are stated at cost less accumulated depreciation. The costs of minor additions or those costing below £500 are not capitalised.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Equipment - 25% reducing balance Property Improvements - 25% reducing balance

Impairment of Fixed Assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

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Green Lane Nursery and Child Care Centre

Notes to the Financial Statements (continued)

Year Ended 31 August 2022

3. Accounting Policies (continued)

Impairment of Fixed Assets (continued)

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Defined Contribution Plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.

Cash at Bank and in Hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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Green Lane Nursery and Child Care Centre

Notes to the Financial Statements (continued)

Year Ended 31 August 2022

3. Accounting Policies (continued)

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Taxation

The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

4. Limited by Guarantee

The company is limited by guarantee. At 31st August 2022 there were 4 members each of whom had undertaken to contribute an amount not exceeding £1 in the event of a winding up.

5. Charitable Activities

		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Fees	290,480	290,480	237,577	237,577
	Local authority funding	170,550	170,550	166,312	166,312
		─────────	─────────	─────────	─────────
		461,030	461,030	403,889	403,889
		═════════	═════════	═════════	═════════
6.	Investment Income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Bank interest receivable	8	8	29	29
		════	════	════	════
7.	Other Income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Covid19 support - Job Retention
	Scheme	–	–	14,022	14,022
	Covid 19 Support - SSP	906	906	–	–
		────	────	────────	────────
		906	906	14,022	14,022
		════	════	════════	════════

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Green Lane Nursery and Child Care Centre

Notes to the Financial Statements (continued)

Year Ended 31 August 2022

8. Expenditure on Charitable Activities by Fund Type

		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2022	Funds	2021
		£	£	£	£
	Childcare costs - see page 16	418,062	418,062	395,349	395,349
		═════════	═════════	═════════	═════════
9.	Expenditure on Charitable Activities by Activity Type
			Activities
			undertaken	Total funds	Total fund
			directly	2022	2021
			£	£	£
	Childcare costs - see page 16		418,062	418,062	395,349
			═════════	═════════	═════════
10.	Net Income
	Net income is stated after charging/(crediting):
				2022	2021
				£	£
	Depreciation of tangible fixed assets			11,160	6,192
				════════	═══════
11.	Independent Examination Fees
				2022	2021
				£	£
	Fees payable to the independent examiner for:
	Independent examination of the financial statements			720	720
	Other financial services			778	778
				───────	───────
				1,498 ═══════	1,498 ═══════

12. Staff Costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

	2022	2021
	£	£
Wages and salaries	323,619	310,298
Social security costs	17,316	17,241
Employer contributions to pension plans	5,211	5,185
	─────────	─────────
	340,935 ═════════	332,724 ═════════

The average head count of employees during the year was 21 (2021: 20). The average	The average head count of employees during the year was 21 (2021: 20). The average	number
of full-time equivalent employees during the year is analysed as follows:
	2022	2021
	No.	No.
Number of childcare staff	21	20
	════	════

No employee received employee benefits of more than £60,000 during the year (2021: Nil).

13. Trustee Remuneration and Expenses

During the year trustees received no remuneration or expenses (2021 - Nil).

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Green Lane Nursery and Child Care Centre

Notes to the Financial Statements (continued)

Year Ended 31 August 2022

14. Tangible Fixed Assets

			Property
		Equipment	improvements	Total
		£	£	£
	Cost
	At 1 September 2021	66,488	50,316	116,804
	Additions	26,063	–	26,063
		────────	────────	─────────
	At 31 August 2022	92,551	50,316	142,867
		════════	════════	═════════
	Depreciation
	At 1 September 2021	62,628	38,962	101,590
	Charge for the year	8,321	2,839	11,160
		────────	────────	─────────
	At 31 August 2022	70,949	41,801	112,750
		════════	════════	═════════
	Carrying amount
	At 31 August 2022	21,602	8,515	30,117
		════════	════════	═════════
	At 31 August 2021	3,860	11,354	15,214
		════════	════════	═════════
15.	Debtors
			2022	2021
			£	£
	Trade debtors		13,404	18,553
	Prepayments and accrued income		610	596
			────────	────────
			14,014	19,149
			════════	════════
16.	Creditors: amounts falling due within one year
			2022	2021
			£	£
	Trade creditors		11,405	167
	Accruals		720	720
	Social security and other taxes		12,290	5,249
	Deferred income		10,878	12,307
	Other creditors		156	1,123
			────────	────────
			35,449 ════════	19,566 ════════

17. Pensions and Other Post Retirement Benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £5,211 (2021: £5,185).

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Green Lane Nursery and Child Care Centre

Notes to the Financial Statements (continued)

Year Ended 31 August 2022

18. Analysis of Charitable Funds

Unrestricted funds

Unrestricted funds
		At				At
	1	September			31 August
		2021	Income	Expenditure		2022
		£	£	£		£
General funds		213,484	461,944	(418,062)		257,366
		═════════	═════════	═════════		═════════
		At
	1	September			At	31 August
		2020	Income	Expenditure		2021
		£	£	£		£
General funds		190,893	417,940	(395,349)		213,484
		═════════	═════════	═════════		═════════

19. Analysis of Net Assets Between Funds

	Unrestricted	Total Funds
	Funds	2022
	£	£
Tangible fixed assets	30,117	30,117
Current assets	262,698	262,698
Creditors less than 1 year	(35,449)	(35,449)
	─────────	─────────
Net assets	257,366	257,366
	═════════	═════════
	Unrestricted	Total Funds
	Funds	2021
	£	£
Tangible fixed assets	15,214	15,214
Current assets	217,836	217,836
Creditors less than 1 year	(19,566)	(19,566)
	─────────	─────────
Net assets	213,484	213,484
	═════════	═════════

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Green Lane Nursery and Child Care Centre

Management Information

Year Ended 31 August 2022

The Following Pages Do Not Form Part of the Financial Statements.

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Green Lane Nursery and Child Care Centre

Detailed Statement of Financial Activities

Year Ended 31 August 2022

	2022	2021
	£	£
Income and endowments
Charitable activities
Fees	290,480	237,577
Local authority funding	170,550	166,312
	─────────	─────────
	461,030	403,889
	─────────	─────────
Investment income
Bank interest receivable	8	29
	────	────
Other income
Covid19 support - Job Retention Scheme	–	14,022
Covid 19 Support - SSP	906	–
	────	────────
	906	14,022
	────	────────
	─────────	─────────
Total income	461,944	417,940
	═════════	═════════
Expenditure
Wages/salaries	323,619	310,298
Employer's NIC	17,316	17,241
Employer's pension contributions	5,211	5,185
Rent	12,237	10,187
Repairs & maintenance	5,824	5,944
Insurance	773	768
Legal and professional fees	3,319	2,418
Telephone	2,733	2,192
Stationery & postage	4,048	2,647
Depreciation	11,160	6,192
Equipment & Supplies	10,030	15,461
Food & Refreshments	20,250	15,774
Sundry costs	1,542	1,042
	─────────	─────────
Total expenditure	418,062	395,349
	═════════	═════════
	─────────	─────────
Net income	43,882	22,591
	═════════	═════════

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