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2021-08-31-accounts

Charity registration number 1125357

Company registration number 06539479 (England and Wales)

ADLINGTON COMMUNITY NURSERY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

ADLINGTON COMMUNITY NURSERY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ms G Mcgarvie
Mrs H J Federici
Ms S I Lund
Mrs M P McClean
Mr S Scragg
Mr S Barton
Ms H Barton
Secretary Mrs M P McClean
Charity number 1125357
Company number 06539479
Registered office Adlington Community Centre
Railway Road
Adlington
Lancashire
PR6 9RF
Independent examiner Topping Partnership (Accountants) Limited
Incom House
Waterside
Trafford Park
Manchester
M17 1WD

ADLINGTON COMMUNITY NURSERY

CONTENTS

Page
Trustees' report 1 - 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 15

ADLINGTON COMMUNITY NURSERY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their annual report and financial statements for the year ended 31 August 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The Charity's purposes are to enhance the development and education of children primarily under statutory school age by encouraging parents to understand and provide for the needs of their children through Community Groups.

The Aims of the Charity are to:

  1. Offer appropriate play, education and care facilities and training courses, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability;

  2. Encourage the study of the needs of children and their families and promote public interest in and recognition of such needs;

  3. Instigate and adhere to and further the aims and objectives of the Pre-school Leaning Alliance. Now called "Early Years Alliance".

Ensuring our Work delivers our aims

We evaluate each daily planned activity to look at the success and see if we have achieved what we set out to do to benefit each child's early year's education.

We complete a self evaluation "Development Plan" in conjunction with the local early year's professional's support group, to continually highlight areas of practice which need improvements in line with Government legislation.

The Focus of our Work

  1. To provide high quality care and education for the children below statutory school age.

  2. Work in partnership with parents to help children to learn and develop.

  3. Add to the life and well-being of the local community.

  4. Offer children and their parents a service that promotes equality and values diversity.

How our activities deliver Public Benefit

Our provision of nursery facilities for children from age 2 until school age benefits both children and parents. As a Community based voluntary managed setting, we depend upon the involvement of parents to keep going. Parents who join the Management Committee are elected by parents who attend the setting; the Committee are then responsible for all aspects of the business side of operating a nursery. In effect, it is parents who have full say in how the nursery is run.

The children enjoy attending and experience personal, social, emotional, physical and creative development through fun activities.

ADLINGTON COMMUNITY NURSERY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The Nursery continues to be eligible for Lancashire County Council's Free Early Years Entitlement Funding for 2, 3 and 4 year old children. The nursery also accepts the Government Initiative of up to 30 hours Free Early Education entitlement funding, supporting working families but supporting their children.

Staff continued to develop their professional development by completing online courses and accessing webinars to ensure up to date advice and information was carried out to continue to provide support as well as learning and development for themselves and the children.

Fundraising was limited throughout the year due to covid restrictions, however an Easter Egg raffle was held and proceeds were put towards the cost of new purchasing some new resources. No donations were received from Fare share during the year as surplus foods were donated to food banks to support people throughout covid.

Nursery continued to stay operative throughout the pandemic across and adopted Government legislation and advice with regards to covid controls and isolation rules, to practice as safely as possible. The outdoor environment was enhanced well and used to its full potential to ensure the children were accessing lots of fresh air

The year began with 35 children attending nursery sessions.. At the end of summer, there were 41 children on registration, of which 20 were preschool children.

Plans for future periods

Having achieved an OFSTED rating of 'good provider' in all areas in September 19, the main aim of the Nursery over the coming years, is to achieve and become an OFSTED 'good provider with outstanding tendencies' in all areas, and to continue to develop Professional development to support this

The Charity remains committed towards providing the highest possible level of quality towards the provision of a community nursery operating with the organisational structure.

The MATHS LQA module is currently on hold, again due to the pandemic but will continue as soon as feasible.

The outdoor area is continuously being updated and rearranged to promote an interesting and stimulating environment to continue promoting children's wants, needs and interests.

Financial review

The Charity does look at budget plans and forecasting and maintains detailed accounting records and closely monitors its income and expenditure at regular intervals during the financial year. In general, fees for the children from all sources are intended to cover salary costs, rent and food provisions for the children. All other requirements for equipment are intended to be covered by fund-raising events or grants. As a Charity we are nonprofit making; however, in the past three years we have achieved more financial stability.

Reserves Policy

The reserves are held in the Charity bank account for use in the daily operation of the nursery. The reserves are required to meet the working capital requirements of the Charity and the Management Committee are confident that at this level they are able to maintain the current activities of the Charity.

ADLINGTON COMMUNITY NURSERY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Principal Funding Sources

Children aged over 3 are funded by Lancashire County Council from the beginning of the next term following their third birthday. Lancashire County Council places funds directly into the nursery bank account on a termbyterm basis. Children under the age of 3 are mostly paid for by their parents; parents are requested to pay per halfterm at the beginning of each half-term. From September 2012 there have been funded places for two year olds who meet certain specified criteria. The Nursery also runs fundraising events to cover specific requirements for equipment, and occasionally received funding from various government backed schemes. In the year furniture was purchased as a donation was received from the Community Centre where the nursery is based.

Investment Policy

The Charity does not hold any investments. All funds are held in the bank and used in the day to day operation of the nursery.

Risk Management

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity is a company limited by guarantee. I ncorporated on 19th March 2008 and registered as a Charity on 5th August 2008. The Company was established under a Memorandum of Association which established the objects and powers of the Charitable Company and is governed under its Article of Association.

Every member of the Nursery undertakes to pay such amount as may be required not exceeding £1 towards the Nursery's assets if the Nursery should be wound up while he, she or it remains a Member or within one year after they cease to be a member towards the costs of dissolution and the liabilities incurred by the Nursery while the contributor was a Member.

The trustees who served during the year and up to the date of signature of the financial statements were:

Ms G Mcgarvie Mrs H J Federici Ms S I Lund Mrs M P McClean Mr S Scragg Mr S Barton Ms H Barton

ADLINGTON COMMUNITY NURSERY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Recruitment and Appointment of Management Committee

Under the requirements of the Memorandum and Articles of Association, the Members of the Management Committee are elected from the ''Members'' of the Nursery, these are parents / guardians of children who attend the nursery.

The Committee Members shall be elected for a term of one year at the Annual General Meeting. Retiring Committee Officers and Committee Members are eligible for re-election unless they have already served on the Committee in any capacity for six consecutive years. Committee Officers and Committee Members so elected shall serve until the end of the next year following the Annual General Meeting at which they were elected.

The Committee shall consist of:

A chair, a Treasurer and a Secretary (''the Committee Officers''); and Not less than 2 nor more than 9 elected Members; and

If the Committee so decides, not more than 3 Members co-opted by the Committee.

Trustee induction and Training

Most trustees are already familiar with the practical work of the charity. At the first Committee Meeting following the AGM, they are welcomed by the Chair of the Management Committee, and introduced to the rest of the Committee. They are given a hand-out which explains:

  1. The structure of the nursery and how the Management Committee fit in with the Nursery Staff;

  2. Names and positions of the nursery staff;

  3. The obligations of the Management Committee Members.

They are also given copies of the Memorandum and Articles of Association.

A form is passed round to take everyone's contact details, this is then typed up and distributed at a later date so that Committee Members can contact each other.

New Trustees are encouraged to ask questions about anything that the hand-out does not cover and then at this first meeting they are brought up-to-date with current and future issues being discussed.

Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year.

ADLINGTON COMMUNITY NURSERY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

The trustees' r eport was approved by the Board of Trustees.

Mrs H J Federici

Trustee

27 May 2022

ADLINGTON COMMUNITY NURSERY

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF ADLINGTON COMMUNITY NURSERY

I report to the trustees on my examination of the financial statements of Adlington Community Nursery (the charity) for the year ended 31 August 2021.

Responsibilities and basis of report

As the trustees of the charity (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 financial statements of the charity 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 financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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:

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 financial statements to be reached.

Daniel Bowles FCCA Independent Examiner

Topping Partnership (Accountants) Limited

Incom House Waterside Trafford Park Manchester M17 1WD

Dated: 27 May 2022

ADLINGTON COMMUNITY NURSERY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted Unrestricted
funds
funds
2021
2020
Notes
£
£
Income from:
Donations and legacies 3 975
2,244
Charitable activities 4 129,980
106,770
Other trading activities 5 -
2,520
Investments 6 6
84
Total income 130,961
111,618
Expenditure on:
Charitable activities 7 109,016
105,530
Net income for the year/
Net movement in funds 21,945
6,088
Fund balances at 1 September 2020 129,324
123,236
Fund balances at 31 August 2021 151,269
129,324

The statement of financial activities includes all gains and losses recognised in the year.

All funds are unrestricted.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ADLINGTON COMMUNITY NURSERY

BALANCE SHEET

AS AT 31 AUGUST 2021

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2021
£
1,770
147,203
148,973
(856)		 £
3,152
148,117
151,269
151,269
151,269		 2020
£
823
144,421
145,244
(20,077)		 £
4,157
125,167
129,324
129,324
129,324

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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.

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

The financial statements were approved by the Trustees on 27 May 2022

Mrs H J Federici Trustee

Company registration number 06539479

ADLINGTON COMMUNITY NURSERY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Charity information

Adlington Community Nursery is a private company limited by guarantee incorporated in England and Wales. The registered office is Adlington Community Centre, Railway Road, Adlington, Lancashire, PR6 9RF.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

ADLINGTON COMMUNITY NURSERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.5 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Equipment 20% Reducing Balance Computers 3 years Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.6 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

ADLINGTON COMMUNITY NURSERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Government Grants Received 975 2,244

ADLINGTON COMMUNITY NURSERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

4 Charitable activities

Charitable
Charitable
Income
Income
2021
2020
£
£
Sales within charitable activities 129,980
106,770
5 Other trading activities
Total Unrestricted
funds
2021 2020
£ £
Fundraising events - 2,520
6 Investments
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 6 84

ADLINGTON COMMUNITY NURSERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

7 Charitable activities Charitable activities
Charitable
Charitable
Expenditure
Expenditure
2021
2020
£
£
Staff costs 91,097
87,720
Depreciation and impairment 1,005
1,418
Rent 4,186
4,083
Insurance 1,415
1,431
Postage, Stationary and Printing 314
266
Payroll Administration 264
288
Sundries 1,956
940
Resources 4,753
3,548
Sweatshirts 384
1,087
Food and Milk 1,459
1,124
Training 141
825
Bank Charges -
30
Repairs 610
1,397
Accounting 733
1,000
Gifts & Donations -
260
Other charitable expenditure 699
113
109,016
105,530
109,016
105,530

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

9 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Employees 6 6

ADLINGTON COMMUNITY NURSERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

9
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2021
2020
£
£
89,256
84,585
873
2,180
968
955
91,097
87,720

There were no employees whose annual remuneration was more than £60,000.

10
Tangible fixed assets
Equipment
Computers
£
£
Cost
At 1 September 2020
32,790
4,562
At 31 August 2021
32,790
4,562
Depreciation and impairment
At 1 September 2020
28,850
4,345
Depreciation charged in the year
788
217
At 31 August 2021
29,638
4,562
Carrying amount
At 31 August 2021
3,152
-
At 31 August 2020
3,940
217
11
Debtors
2021
Amounts falling due within one year:
£
Trade debtors
1,160
Other debtors
127
Prepayments and accrued income
483
1,770		 Total
£
37,352
37,352
33,195
1,005
34,200
3,152
4,157
2020
£
42
-
781
823

ADLINGTON COMMUNITY NURSERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

12 Creditors: amounts falling due within one year

Notes
Other taxation and social security
Deferred income
13
Trade creditors
Accruals and deferred income
Deferred income
Arising from Lancashire County Council Grant		 2021
£
-
-
144
712
856
2021
£
-		 2020
£
640
18,472
253
712
20,077
2020
£
18,472

13 Deferred income

The deferred income included in the accounts of £18,472 relates to monies received from Lancashire C ounty Council. This money is an advance of funding for the Autumn 2020 term.

Deferred income is included in the financial statements as follows:

2021
£
Deferred income is included within:
Current liabilities
-
Movements in the year:
Deferred income at 1 September 2020
18,472
Released from previous periods
(18,472)
Resources deferred in the year
-
Deferred income at 31 August 2021
-		 2020
£
18,472
-
-
18,472
18,472

14 Related party transactions

There were no disclosable related party transactions during the year (2020 - none) .