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. 1 of 16 ## 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| 2 of 16 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** 3 of 16 ## 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: 1. accounting records were not kept in respect of the Company 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 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. David McIntyre FMAAT McIntyre & McIntyre 6A Ryder Court Saxon Way East Corby Northamptonshire NN18 9NX ## **4 June 2021** 4 of 16 ## 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**| 5 of 16 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** 6 of 16 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. 7 of 16 ## 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. 8 of 16 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| 9 of 16 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**| 10 of 16 ## 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. 11 of 16 ## 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. 12 of 16 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**| 13 of 16 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. 14 of 16