Company registration number: 5769390 Charity registration number: 1116891
## Shadwell Childcare Limited
(A company limited by guarantee)
Annual Report and Financial Statements for the Year Ended 31 August 2020
Fullertons Limited Chartered Certified Accountants Manchester House 50 Oxford Road Guiseley Leeds LS20 8AB
## **Shadwell Childcare Limited**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 3|
|Statement of Trustees' Responsibilities|4|
|Independent Examiner's Report|5 to 6|
|Statement of Financial Activities|7|
|Balance Sheet|8|
|Notes to the Financial Statements|9 to 15|
## **Shadwell Childcare Limited**
## **Reference and Administrative Details**
**Trustees** Mrs Sarah Jane Coltman Susan Morgan Carolyn Eyre **Senior Management Team** Paula Wilson, Childcare Manager **Principal Office** Shadwell Primary School Main Street Shadwell Leeds LS17 8JF **Company Registration Number** 5769390 **Charity Registration Number** 1116891 **Accountants** Fullertons Limited Chartered Certified Accountants Manchester House 50 Oxford Road Guiseley Leeds LS20 8AB
Page 1
## **Shadwell Childcare Limited**
## **Trustees' Report**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 August 2020.
## **Objectives and activities**
## _**Objects and aims**_
To enhance the development and education of children up to the age of 11 by providing appropriate play,education and care facilities ensuring that opportunities are offered to all children whatever their race, culture, religion, means or ability.
## _**Objectives, strategies and activities**_
## _**Public benefit**_
Our activities to further public benefit include looking after the education and well-being of children up to the age of 11 regardless of gender, race, religion or financial means.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## **Achievements and performance**
The setting remained open to children of crirical workers and vulnerable families throughout the start of the Covid pandemic, even when this was at cost to ourselves. There was a wider opening in June 2020 to offer all our pre-school children the opportunity to return to nursery in bubble for transition support. Again this was at some financial cost to us but recognised this as critical to meeting the children's needs in moving school especially with the lockdowns and current climate of uncertainty and change.
Throughout the first lockdown, regular contact was made with all families including telephone support, learning packs posted to all children, stories and songs uploaded to the website for families to use along with weekly activities and updates.
## _**Key non-financial performance indicators**_
Feedback from staff and parents has been overwhelmingly positive during this period. The positive responses and the impact of the outstanding care and support offered to children and their families over this period was unparalleled.
## **Financial review**
## _**Policy on reserves**_
The trustees observed that the decision made in previous years to build a contingency fund of £120,000 or three months running costs, in line with Charity Commission guidance has stood us in good stead. Without the contingency our setting may not have survived through the pandemic.
Page 2
## **Shadwell Childcare Limited**
## **Trustees' Report**
## **Structure, governance and management**
## _**Nature of governing document**_
The governing document is the memorandum and articles of association dated 20 March 2018 and lodged with Companies House
## _**Recruitment and appointment of trustees**_
It is noted that we were not able to attract new trustees last year, partly due to Covid. It is agreed that we should redouble our efforts to source at least one new trustee in the coming year.
## _**Arrangements for setting key management personnel remuneration**_
Key management personnel is comprised of Ms P Wilson whose remuneration is agreed by the trustees.
## **Financial instruments**
## _**Objectives and policies**_
The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.
## _**Credit risk**_
The charity’s principal financial assets are bank balances and cash, trade and other receivables.
## _**Liquidity risk**_
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity maintains a deposit account.
Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
The annual report was approved by the trustees of the charity on 30 June 2021 and signed on its behalf by:
......................................... Carolyn Eyre Trustee
Page 3
## **Shadwell Childcare Limited**
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of Shadwell Childcare Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees 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 charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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 and detection of fraud and other irregularities.
Approved by the trustees of the charity on 30 June 2021 and signed on its behalf by:
......................................... Carolyn Eyre Trustee
Page 4
## **Shadwell Childcare Limited**
## **Independent Examiner's Report to the trustees of Shadwell Childcare Limited**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2020 which are set out on pages 7 to 15.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of Shadwell Childcare Limited (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of Shadwell Childcare Limited 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 your 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 Shadwell Childcare Limited'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 Association of Chartered Certified Accountants, 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 Shadwell Childcare Limited as required by section 386 of the 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 ‘true 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 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.
...................................... Graham Anthony Elliott FCCA Chartered Certified Accountants Association of Chartered Certified Accountants
Manchester House 50 Oxford Road Guiseley Leeds LS20 8AB
Page 5
## **Shadwell Childcare Limited**
## **Independent Examiner's Report to the trustees of Shadwell Childcare Limited**
30 June 2021
Page 6
## **Shadwell Childcare Limited**
## **Statement of Financial Activities for the Year Ended 31 August 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Charitable activities
3
Investment income
4
Total income
**Expenditure on:**
Charitable activities
5
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
16
**Note**
**Income and Endowments from:**
Charitable activities
3
Investment income
4
Total income
**Expenditure on:**
Charitable activities
5
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
16|**Unrestricted**
**funds**
**£**
400,009
281
400,290
(379,332)
(379,332)
20,958
20,958
281,879
302,837
**Unrestricted**
**funds**
**£**
480,240
181
480,421
(423,000)
(423,000)
57,421
57,421
224,457
281,878|**Unrestricted**
**funds**
**£**
400,009
281||**Total**
**2020**
**£**
400,009
281|
|---|---|---|---|---|
|||400,290||400,290|
|||(379,332)||(379,332)|
|||(379,332)||(379,332)|
|||20,958||20,958|
|||20,958
281,879||20,958
281,879|
|||302,837||302,837|
|||||**Total**
**2019**
**£**
480,240
181|
|||||480,421|
|||||(423,000)|
|||||(423,000)|
|||||57,421|
|||||57,421
224,457|
|||||281,878|
All of the charity's activities derive from continuing operations during the above two periods.
The notes on pages 9 to 15 form an integral part of these financial statements. Page 7
## **Shadwell Childcare Limited**
## **(Registration number: 5769390) Balance Sheet as at 31 August 2020**
|**Note**
**Fixed assets**
Tangible assets
12
**Current assets**
Debtors
13
Cash at bank and in hand
14
**Creditors: Amounts falling due within one year**
15
**Net current assets**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
16|**2020**
**£**
32,078
5,632
297,464
303,096
(32,337)
270,759
302,837
302,837
302,837|**2019**
**£**
41,124
-
254,356|
|---|---|---|
|||254,356
(13,602)|
|||240,754|
|||281,878|
|||281,878|
|||281,878|
For the financial year ending 31 August 2020 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 charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 7 to 15 were approved by the trustees, and authorised for issue on 30 June 2021 and signed on their behalf by:
......................................... Carolyn Eyre Trustee
The notes on pages 9 to 15 form an integral part of these financial statements.
Page 8
## **Shadwell Childcare Limited**
## **Notes to the Financial Statements for the Year Ended 31 August 2020**
## **1 Charity status**
The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.
The address of its registered office is: Shadwell Primary School Main Street Shadwell Leeds LS17 8JF
These financial statements were authorised for issue by the trustees on 30 June 2021.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
Shadwell Childcare Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Page 9
## **Shadwell Childcare Limited**
## **Notes to the Financial Statements for the Year Ended 31 August 2020**
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
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.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Taxation**
The charity 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 charity 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.
## **Tangible fixed assets**
Individual fixed assets costing £100.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
**Asset class Depreciation method and rate** Furniture and equipment 25% on net book value Improvements to leasehold property 20% on initial cost
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Page 10
## **Shadwell Childcare Limited**
## **Notes to the Financial Statements for the Year Ended 31 August 2020**
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
## **Pensions and other post retirement obligations**
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
## **3 Income from charitable activities**
|Childcare provision
**Total for 2020**
**Total for 2019**
**4**
**Investment income**
Interest receivable and similar income;
Interest receivable on bank deposits
**Total for 2020**
**Total for 2019**|**Unrestricted**
**funds**
**General**
**£**
400,009
400,009
480,240
**Unrestricted**
**funds**
**General**
**£**
281
281
181|**Total**
**funds**
**£**
400,009|
|---|---|---|
|||400,009|
|||480,240|
|||**Total**
**funds**
**£**
281|
|||281|
|||181|
Page 11
## **Shadwell Childcare Limited**
## **Notes to the Financial Statements for the Year Ended 31 August 2020**
## **5 Expenditure on charitable activities**
|**Note**
Childcare provision
Staff costs
Governance costs
6
**Total for 2020**
**Total for 2019**|**Unrestricted**
**funds**
**General**
**£**
28,486
254,873
95,973
379,332
423,000|**Total**
**funds**
**£**
28,486
254,873
95,973|
|---|---|---|
|||379,332|
|||423,000|
**Total expenditure £**
In addition to the expenditure analysed above, there are also governance costs of £95,973 (2019 - £89,205) which relate directly to charitable activities. See note 6 for further details.
## **6 Analysis of governance and support costs**
## **Governance costs**
|Independent examiner fees
Examination of the financial statements
Legal fees
Depreciation, amortisation and other similar costs
Other governance costs
**Total for 2020**
**Total for 2019**|**Unrestricted**
**funds**
**General**
**£**
870
4,174
18,465
72,464
95,973
89,206|**Total**
**funds**
**£**
870
4,174
18,465
72,464|
|---|---|---|
|||95,973|
|||89,206|
Page 12
## **Shadwell Childcare Limited**
## **Notes to the Financial Statements for the Year Ended 31 August 2020**
## **7 Net incoming/outgoing resources**
Net incoming resources for the year include:
|Depreciation of fixed assets
**8**
**Trustees remuneration and expenses**
**9**
**Staff costs**
The aggregate payroll costs were as follows:
**Staff costs during the year were:**
Wages and salaries
Pension costs
Other staff costs
No employee received emoluments of more than £60,000 during the year.
**10 Independent examiner's remuneration**
Examination of the financial statements|**2020**
**£**
18,465
**2020**
**£**
282,789
20,577
(48,493)
254,873
**2020**
**£**
870|**2019**
**£**
16,944|
|---|---|---|
|||**2019**
**£**
271,530
17,206
-|
|||288,736|
|||**2019**
**£**
720|
Page 13
## **Shadwell Childcare Limited**
## **Notes to the Financial Statements for the Year Ended 31 August 2020**
## **11 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **12 Tangible fixed assets**
|**Cost**
At 1 September 2019
Additions
At 31 August 2020
**Depreciation**
At 1 September 2019
Charge for the year
At 31 August 2020
**Net book value**
At 31 August 2020
At 31 August 2019|**Land and**
**buildings**
**£**
78,418
9,160
87,578
40,836
17,515
58,351
29,227
37,582|**Furniture and**
**equipment**
**£**
5,831
259
6,090
2,289
950
3,239
2,851
3,542|**Total**
**£**
84,249
9,419|
|---|---|---|---|
||||93,668|
||||43,125
18,465|
||||61,590|
||||32,078|
||||41,124|
Included within the net book value of land and buildings above is £Nil (2019 - £Nil) in respect of freehold land and buildings and £29,227 (2019 - £37,582) in respect of leaseholds.
## **13 Debtors**
|**13 Debtors**|||
|---|---|---|
|Other debtors
**14 Cash and cash equivalents**
Cash at bank|**2020**
**£**
297,464|**2020**
**£**
5,632|
|||**2019**
**£**
254,356|
## **15 Creditors: amounts falling due within one year**
Page 14
## **Shadwell Childcare Limited**
## **Notes to the Financial Statements for the Year Ended 31 August 2020**
|Other creditors
Accruals
**16 Funds**
**Unrestricted funds**
General
**Unrestricted funds**
General
**17 Analysis of net assets between funds**
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Balance at 1**
**September**
**2019**
**£**
281,879
**Balance at 1**
**September**
**2018**
**£**
224,457|**Incoming**
**resources**
**£**
400,290
**Incoming**
**resources**
**£**
480,421|**2020**
**£**
29,837
2,500
32,337
**Resources**
**expended**
**£**
(379,332)
**Resources**
**expended**
**£**
(423,000)
**Unrestricted**
**funds**
**General**
**£**
32,078
303,096
(32,337)
302,837
**Unrestricted**
**funds**
**General**
**£**
41,124
254,356
(13,602)
281,878|**2019**
**£**
11,102
2,500|
|---|---|---|---|---|
|||||13,602|
|||||**Balance at 31**
**August 2020**
**£**
302,837|
|||||**Balance at 31**
**August 2019**
**£**
281,878|
|||||**Total funds at**
**31 August**
**2020**
**£**
32,078
303,096
(32,337)|
|||||302,837|
|||||**Total funds at**
**31 August**
**2019**
**£**
41,124
254,356
(13,602)|
|||||281,878|
Page 15
## **Shadwell Childcare Limited**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2020**
|**Income and Endowments from:**
Charitable activities (analysed below)
Investment income (analysed below)
Total income
**Expenditure on:**
Charitable activities (analysed below)
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward|**Total**
**2020**
**£**
400,009
281
400,290
(379,332)
(379,332)
20,958
20,958
281,879
302,837|**Total**
**2019**
**£**
480,240
181|
|---|---|---|
|||480,421|
|||(423,000)|
|||(423,000)|
|||57,421|
|||57,421
224,457|
|||281,878|
This page does not form part of the statutory financial statements. Page 16
## **Shadwell Childcare Limited**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2020**
|**_Charitable activities_**
Fees and supplies
**_Investment income_**
Interest on cash deposits
**_Charitable activities_**
Direct costs
Wages and salaries
Staff pensions (Defined contribution) - pension scheme 1
CJRS grants receivable
Staff training
Rent
Light, heat and power
Insurance
Repairs and maintenance
Telephone and fax
Computer software and maintenance costs
Printing, postage and stationery
Trade subscriptions
Hire of plant and machinery (Operating leases)
Sundry expenses
Cleaning
Advertising
Accountancy fees
Legal and professional fees
Bank charges
Depreciation of short leasehold property improvements
Depreciation of office equipment|**Total**
**2020**
**£**
400,009
400,009
281
281
(28,486)
(282,789)
(14,479)
48,493
(6,098)
(32,400)
(825)
(3,337)
(11,593)
(2,899)
(2,881)
(4,175)
(166)
(1,083)
(2,058)
(10,573)
(361)
(870)
(4,174)
(113)
(17,515)
(950)
(379,332)|**Total**
**2019**
**£**
480,240|
|---|---|---|
|||480,240|
|||181|
|||181|
|||(45,058)
(271,530)
(13,747)
-
(3,459)
(32,400)
(5,844)
(2,628)
(6,317)
(1,531)
(2,502)
(3,464)
-
(1,182)
(2,901)
(7,815)
(299)
(720)
(4,525)
(134)
(15,684)
(1,260)|
|||(423,000)|
This page does not form part of the statutory financial statements. Page 17