Squirrels Day Nursery (Corby) Limited
Unaudited Report and Financial Statements
For the year ended 31 December 2020
Charity number: 1119196
Company number: 05304299 (England and Wales)
Squirrels Day Nursery (Corby) Limited Contents Page For the year ended 31 December 2020
| Report of the Trustees | 1 to 3 |
|---|---|
| Independent Examiner's Report to the Trustees | 4 |
| Statement of Financial Activities | 5 |
| Statement of Financial Position | 6 |
| Notes to the Financial Statements | 7 to 14 |
| Detailed Statement of Financial Activities | 15 to 16 |
Squirrels Day Nursery (Corby) Limited Report of the Trustees For the year ended 31 December 2020
The Trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the financial statements for the charitable company for the year ended 31 December 2020. The Trustees have adopted the provisions of 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 the Republic of Ireland (FRS 102) (effective 1 January 2019).
Chair's report
The 2020 financial year has been a challenging one for the charity; the coronavirus pandemic brought with it many difficulties to overcome. Despite this the charity decided to remain open to provide childcare and support to vulnerable children and nursery care to the children of keyworkers. Like many organisations, some staff had to be furloughed but through careful planning and risk assessment services could still be offered through this difficult time.
Through careful monitoring of costs, the charity has achieved a surplus for the year after suffering small deficits in the previous two financial years, this has helped increase reserves. It is hoped that this can now form a platform to build on over the coming year. Maintaining staff numbers is essential to provide the high standard of childcare and development that the charity has been well known for.
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity's main aim is to advance the education and development of children under statutory school age; offer appropriate learning experiences and play facilities; to ensure the nursery offers opportunities for all children whatever their race, culture, religion, means and ability and encourage parents to become involved in the activities of the nursery.
The trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'.
Volunteers
The charity is grateful for the support and effort of its volunteers. Parents have given valuable time in childcare play activities and gardening.
ACHIEVEMENTS AND PERFORMANCE
The company has built on the achievement of becoming a registered charity following its development through the Neighbourhood Nurseries Initiative. The nursery continues to focus on the development of the project to improve staff skills under the 'Every Child a Talker' programme and promoting the work of the charity and the childcare facilities offered.
Achievements against objectives
The trustees feel that the charity has been successful in delivering its core function of nursery provision and reaching all areas of the community, in such a demanding year.
It had become clear from questions raised by parents and carers that there was a lack of information available locally to explain the transition from nursery care into the state school system. The nursery has addressed this through arranging talks and sessions given by Northants County Council to parents and carers.
FINANCIAL REVIEW
The majority of funding continues to be derived from fees paid for nursery places. Total income from charitable activities including milk subsidies amounts to £332,780 (2019: £334,949). Salaries are the charities largest cost and total employment costs including pension cost amounted to £302,430 (2019: £284,573). This year has been difficult to monitor due to staffing problems relating to the coronavirus pandemic and hopefully the coming year when restrictions are relaxed the charity will be better placed to monitor this more effectively.
General charitable overheads have kept under close review and have decreased to £45,266 from (2019: £53,518).
There is a surplus for the year of £10,948 (2019: deficit £11,298) which has bolstered reserves at the year end.
Reserves
The charity holds general reserves at the year-end of £31,939 (2019: £20,991).
This is below the charity's objective to hold reserves of at least three months operating costs. The surplus for the year is a welcomed turnaround from the deficits reported in the previous two financial years. The charity continues to formulate a more structured reserves policy and it is hoped that this level can be brought back in line through increased nursery places and potential grants and fund raising.
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Squirrels Day Nursery (Corby) Limited Report of the Trustees Continued For the year ended 31 December 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Squirrels Day Nursery (Corby) Limited is a charitable company limited by guarantee governed by it Memorandum and Articles of Association dated 3rd December 2004. It is registered as a charity with the Charity Commission.
Anyone over the age of 18 years can become a trustee or member of the company; currently there are four members, each of whom agree to contribute £1 in the event of the charity winding up.
Recruitment and appointment of trustees
The current trustees have been recruited from employees holding management positions and directors. Recruitment is advertised internally for vacancies and approaches made to parents.
New trustees are given a copy of the Memorandum and Articles of Association together with the latest set of financial accounts and instructed on the duties and responsibilities of a charity trustee. All current trustees are familiar with the work of Squirrels Day Nursery (Corby) Limited as they are employees and directors.
Pay policy for senior staff
The board of trustees are responsible for the recruitment and setting pay policy. Pay and salaries are reviewed annually by the board and are set with reference to government and local authority guidance as budgets permit.
REFERENCE AND ADMINISTRATIVE INFORMATION
| Name of Charity | Squirrels Day Nursery (Corby) Limited |
|---|---|
| Charity registration number | 1119196 |
| Company registration number | 05304299 |
| Principal address | Hazelwood Neighbourhood Centre |
| Gainsborough Road | |
| Corby | |
| Northamptonshire | |
| NN18 0QF | |
| Registered address | 6A Ryder Court |
| Saxon Way East | |
| Corby | |
| Northamptonshire | |
| NN18 (NX | |
| Trustees | |
| The trustees and officers serving during the year and since the year end were as follows: | |
| Mrs C Tiley | |
| Mrs K Blincowe | |
| Miss H Reid | |
| Independent examiners | McIntyre & McIntyre |
| 6A Ryder Court | |
| Saxon Way East | |
| Corby | |
| Northamptonshire | |
| NN18 9NX | |
| Bankers | HSBC plc |
| 22-24 Corporation Street | |
| Corby | |
| Northamptonshire | |
| NN17 1NY |
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Squirrels Day Nursery (Corby) Limited Report of the Trustees Continued For the year ended 31 December 2020
Approved by the Board of Trustees and signed on its behalf by
Mrs C Tiley
4 June 2021
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Squirrels Day Nursery (Corby) Limited Independent Examiners Report to the Trustees
For the year ended 31 December 2020
I report to the trustees on my examination of the accounts of the charitable company for the year ended 31 December 2020.
Responsibilities and basis of report
As the charity Trustees, who are also directors for the purposes of company law, 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 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 your charity's accounts 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 examiners statement
Since the Charitable 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 I am qualified to undertake the examination by virtue of my membership of Association of Accounting Technicians, 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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the 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
-
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.
David McIntyre FMAAT
McIntyre & McIntyre 6A Ryder Court Saxon Way East Corby Northamptonshire NN18 9NX
4 June 2021
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Squirrels Day Nursery (Corby) Limited
Statement of Financial Activities (including Income and Expenditure Account) For the year ended 31 December 2020
| Notes Income and endowments from: Charitable activities 2 Other income 3 Total Expenditure on: Charitable activities 4/5 Total Net income/expenditure Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted funds £ 332,271 34,780 367,051 (356,103) (356,103) 10,948 20,991 31,939 |
2019 £ 334,949 - |
|---|---|---|
| 334,949 | ||
| (346,247) | ||
| (346,247) | ||
| (11,298) 32,289 |
||
| 20,991 |
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05304299
Registered Number :
Squirrels Day Nursery (Corby) Limited Statement of Financial Position
As at 31 December 2020
| Notes Fixed assets Tangible assets 11 Current assets 12 Debtors Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Net assets The funds of the charity Unrestricted income funds 14 Total funds |
£ 2020 28,360 28,360 3,705 10,420 14,125 (10,546) 3,579 31,939 31,939 31,939 31,939 |
£ 2019 30,244 |
|---|---|---|
| 30,244 | ||
| 5,144 1,058 |
||
| 6,202 | ||
| (15,455) (9,253) |
||
| 20,991 | ||
| 20,991 | ||
| 20,991 | ||
| 20,991 |
For the year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476,
The trustees 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 were approved and authorised for issue by the Board and signed on its behalf by:
Mrs C Tiley Trustee
4 June 2021
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Squirrels Day Nursery (Corby) Limited Notes to the Financial Statements
For the year ended 31 December 2020
1. Accounting Policies
Basis of accounting
The financial statements have been prepared under the historical cost convention, except for investments which are included at market value and the revaluation of certain fixed assets and in accordance with the Charities SORP (FRS 102) ‘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 2019)’, Financial Reporting Standard 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Companies Act 2006.
Squirrels Day Nursery (Corby) 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 note(s).
Going concern
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
Statement of cash flows
The Trustees have taken advantage of the exemption in SORP FRS 102 from including a cash flow statement in the financial statements on the grounds that the charitable company is small.
Change in accounting policy
In preparing the accounts, the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required. The trustees believe that no adjustments are required.
Funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general activities of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for a particular purpose. The charity does not currently hold any designated funds
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for a specific purpose. The charity does not currently hold any restricted funds.
Incoming resources
All incoming resources are included in the statement of financial activities when the Charity is legally entitled to the income after any performance conditions have been met and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received from the provision of nursery and childcare facilities in order to raise funds and is recognised when entitlement has occurred.
Income from local government grants and other grants, whether capital grants or revenue grants, are recognised when the charity has entitlement to the funds and any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.
Donated goods, services and facilities
The value of services provided by volunteers are not incorporated into these financial statements. Further details can be found in the Trustee's Report.
Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
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Squirrels Day Nursery (Corby) Limited Notes to the Financial Statements Continued
For the year ended 31 December 2020
Costs of generating funds
Expenditure is classified under the following activity headings:
Expenditure on charitable activities includes the costs of food and beverages, salaries and employer's costs of the provision of nursery care facilities and other governance costs.
Other expenditure represents those items not falling into any other heading.
Charitable activities
Expenditure on charitable activities includes salaries and employer's costs of nursery staff and management, provision of food and beverages and other governance costs.
Allocation and appointment of costs
Support costs are those costs that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs; they are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings, they have been allocated to expenditure on charitable activities on a basis consistent with the use of the resources.
Taxation
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in paragraph 1 schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
Tangible fixed assets
Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:
Freehold property 4% Straight line Office fittings and equipment 20% Reducing balance Office fittings and equipment 33% Reducing balance
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered.
Pensions
The charity operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the Statement of Financial Activities when due.
Operating leases
Costs of operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.
Irrecoverable VAT
Irrecoverable VAT is included in the Statement of Financial Activities and is reported as part of the expenditure to which it relates.
Provisions
Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.
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Squirrels Day Nursery (Corby) Limited Notes to the Financial Statements Continued
For the year ended 31 December 2020
2. Income from charitable activities
| Unrestricted funds Nursery provision Nursery fees 3. Other income Unrestricted funds HMRC - Job retention scheme grant 4. Costs of charitable activities by fund type Unrestricted funds Nursery provision Support costs 5. Costs of charitable activities by activity type Support costs Activities undertaken directly £ £ Support costs Nursery provision 95,287 260,816 |
2020 £ 332,271 2020 £ 34,780 34,780 2020 £ 260,816 95,287 356,103 2020 £ 356,103 |
2019 £ 334,949 2019 £ - |
|---|---|---|
| - | ||
| 2019 £ 244,406 101,841 |
||
| 346,247 | ||
| 2019 £ 346,247 |
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Squirrels Day Nursery (Corby) Limited Notes to the Financial Statements Continued
For the year ended 31 December 2020
6. Analysis of support costs
| Nursery provision Management Trustee - salaries Trustee - employer's national insurance Trustee - pension contributions Governance costs Accountancy fees Professional fees Rent and rates Depreciation of owned assets Light and heat Cleaning Bank interest Bank charges Insurance Training Trips and activities Toys and equipment Artwork materials Clothing Telephone and postage Repairs and renewals Printing and stationery Computer expenses Advertising Sundry expenses Subscriptions |
2020 £ 45,391 3,984 646 50,021 2,700 1,296 15,605 3,880 4,240 4,220 112 454 1,111 204 79 1,575 1,311 676 2,519 2,635 900 1,012 180 303 254 45,266 95,287 |
2019 £ 44,117 3,719 487 |
|---|---|---|
| 48,323 2,400 1,356 15,411 3,335 3,482 8,802 - 610 1,096 910 339 2,483 1,648 329 2,525 5,733 1,144 967 101 721 126 |
||
| 53,518 | ||
| 101,841 |
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Squirrels Day Nursery (Corby) Limited Notes to the Financial Statements Continued
For the year ended 31 December 2020
7. Net income/(expenditure) for the year
This is stated after charging/(crediting):
| This is stated after charging/(crediting): | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Depreciation of owned fixed assets | 3,880 | 3,335 |
| Accountancy fees | 2,700 | 2,400 |
| Trustees' remuneration | 71,328 | 68,954 |
| Trustees' pension contributions | 1,425 | 1,173 |
| Staff pension contributions | 4,419 | 4,543 |
8. Staff costs and emoluments
Total staff costs for the year ended 31 December 2020 were:
| Salaries and wages Social security costs Pension costs Administrative Direct charitable work |
2020 £ 281,305 15,281 5,844 302,430 2020 2 15 17 |
2019 £ 268,054 10,803 5,716 |
|---|---|---|
| 284,573 | ||
| 2019 2 15 |
||
| 17 |
Staff costs include remuneration paid to trustees.
The remuneration was paid under the authority of the charity's Memorandum and Articles of Association to reflect the time and commitment given.
No employee received remuneration of more than £60,000.
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Squirrels Day Nursery (Corby) Limited Notes to the Financial Statements Continued For the year ended 31 December 2020
9. Trustee remuneration and related party transactions
Mrs C Tiley, Mrs K Blincowe and Miss H Reid are related to the charity due to their position as trustees.
During the year, the trustees worked within the charity and received remuneration as follows: -
Mrs C Tiley Trustee and director
Salary £23,844 (2019: £22,962)
Mrs K Blincowe Trustee and director
Salary £21,547 (2019: £21,155)
Miss H Reid Trustee
Salary £25,937 (2019: £24,837)
10. Comparative for the Statement of Financial Activities
The comparative year values on the Statement of Financial Activities are for unrestricted funds.
11. Tangible fixed assets
| Cost or valuation At 01 January 2020 Additions At 31 December 2020 Depreciation At 01 January 2020 Charge for year At 31 December 2020 Net book values At 31 December 2020 At 31 December 2019 |
Freehold property £ 71,595 - 71,595 42,945 2,863 45,808 25,787 28,650 |
Office fittings and equipment £ 22,517 - 22,517 21,228 258 21,486 1,031 1,289 |
Computer Equipment £ 2,483 1,996 4,479 2,178 759 2,937 1,542 305 |
Total £ 96,595 1,996 |
|---|---|---|---|---|
| 98,591 | ||||
| 66,351 3,880 |
||||
| 70,231 | ||||
| 28,360 | ||||
| 30,244 |
The depreciation charge for the year is £(112) in respect of assets leased under finance leases or hire purchase contracts.
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Squirrels Day Nursery (Corby) Limited Notes to the Financial Statements Continued
For the year ended 31 December 2020
12. Debtors
| Amounts due within one year: Trade debtors Prepayments and accrued income 13. Creditors: amounts falling due within one year Loans and overdrafts Trade creditors Other creditors Accruals and deferred income |
2020 £ 3,219 486 3,705 2020 £ - 482 5,252 4,812 10,546 |
2019 £ 4,670 474 |
|---|---|---|
| 5,144 | ||
| 2019 £ 5,716 1,573 3,709 4,457 |
||
| 15,455 |
14. Movement in funds
| Unrestricted Funds General General Unrestricted Funds - Previous year General General |
Balance at 01/01/2020 £ 20,991 20,991 Balance at 01/01/2019 £ 32,289 32,289 |
Incoming resources £ 367,051 367,051 Incoming resources £ 334,949 334,949 |
Outgoing resources £ (356,103) (356,103) Outgoing resources £ (346,247) (346,247) |
Balance at 31/12/2020 £ 31,939 |
|---|---|---|---|---|
| 31,939 | ||||
| Balance at 31/12/2019 £ 20,991 |
||||
| 20,991 |
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Squirrels Day Nursery (Corby) Limited Notes to the Financial Statements Continued
For the year ended 31 December 2020
Purpose of unrestricted Funds
General
Providing affordable quality childcare for all families in the local community being in the Borough of Corby Northamptonshire.
15. Analysis of net assets between funds
| Unrestricted funds General General Previous year Unrestricted funds General General |
Tangible fixed assets Net current assets / (liabilities) Net Assets £ £ £ 28,360 3,579 31,939 |
|---|---|
| 28,360 3,579 31,939 |
|
| Tangible fixed assets Net current assets / (liabilities) Net Assets £ £ £ 30,244 (9,253) 20,991 |
|
| 30,244 (9,253) 20,991 |
16. Company limited by guarantee
Squirrels Day Nursery (Corby) Limited is a company limited by guarantee and accordingly does not have a share capital.
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