2021-05-31-accounts

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Charity Registration No. 1129278 Company Registration No. 06593494 (England and Wales)

MEADOW BROOK PLAYCARE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

_ MEADOW BROOK PLAYCARE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mrs S Stewart Mrs M Allen Mr R Thompson Mrs Sarah Fisk Mrs Stephanie Sillett

Charity number 1129278

Company number 06593494

Registered office Blyth House Rendham Road Saxmundham Suffolk IP17 1WA

Independent examiner

Carl Page FCCA Ensors Accountants LLP Blyth House Rendham Road Saxmundham Suffolk IP 17 1WA

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MEADOW BROOK PLAYCARE

CONTENTS

	Page
Trustees’ report	1-3
Independent examiner's report	4
Statement offinancial activities	5
Balance sheet	6
Notestothefinancialstatements	7-13

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. MEADOW BROOK PLAYCARE

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

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

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.

Objectives and activities

The charity's objectives and principal activities as set out in the Memorandum and Articles of Association continue to be that of offering appropriate play, education, 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. The policies adopted in furtherance of these objectives remain in place and there has been no change in these during the year.

• The charity enables all families to access quality childcare through the Early Years National Funding (EYNF) for all three years olds and we also offer the additional fifteen hours for working parents. Meadow Brook also accepts the ‘golden ticket’ given to parents of eligible two year olds.

• • Invoicing and pay plans are arranged to assist these families. * The facilities are advertised to all in the wider community. Open mornings are also held. * An inclusive environment is created in which all children are encouraged to reach their full potential.

To continue to further the charity's objectives and principal activities and ensure that it is available to the wider community.

• The staff have continued their professional training and updating their knowledge and understanding.

• • Other educational professionals have visited the setting and submitted positive reports. « Staff continue to observe, assess and refer children on for specialist areas.

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

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. MEADOW BROOK PLAYCARE

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

Achievements and performance

These accounts reflect five years of offering full day care places from birth to five years, for fifty weeks per year. We believe that this is a substantial offering for the local community providing high quality care in a safe and secure environment with highly trained and experienced staff. These accounts also reflect the second year of Covid pandemic impact.

Our capacity is now 127 children across three rooms.

All rooms have flourished during the past year embracing the Curiosity Approach even more.

The pre-school was full for the academic year.

Our Deputy Manager has become an Accredited Forest Schools Leader. Forest School sessions have been running all year with our pre-school children. We created an allotment space and the children have been growing vegetables.

This year we extended our offering to the community by offering an after school club for primary school aged children, using a minibus from the Saxmundham Free School and callecting from two local primary schools.

Overall our numbers have steadily increased this year.

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In April, we moved into the building that was the Children's Centre, finally we are all under one roof. Lots of new ideas and plans are in place.

Financial review

The accounts show a net surplus for the year of £16,884 (2020 : Deficit £2,402). The previous years’ strong financial governance put Meadow Brook in a good position to deal with the ongoing Covid-19 impact which was not something that could have been foreseen in terms of credible risk.

Income from day care was clearly lower due to periods of closure within the financial year as a result of further national lockdowns. Meadow Brook continued to make use of the Government furlough scheme which effectively offset the income lost from day care fees.

Despite Covid, day care continued to work well throughout the year when it was available to families. Meadowbrook continues to be the only early years setting within Saxmundham, however, there are other early year providers within the local area with which we compete. As such it is important that we retain sufficient funds to secure our operations and to ensure we can cope if demand fluctuates. We continue to provide a company pension scheme which has increased our costs and we are of course affected by the National Living Wage increases.

The ongoing pandemic does provide cause for concern however this risk appears to be reducing as the impact of Covid-19 seems to be lessening.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The trustees have 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.

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. MEADOW BROOK PLAYCARE

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

Structure, governance and management

Meadow Brook Playcare is a company limited by guarantee in the United Kingdom, registration number 06593494, incorporated on 14 May 2008 and is therefore governed by a Memorandum and Articles of Association. The directors of the company are also trustees of the charity, charity number 1129278. Eligibility for membership of the charity, and membership of the board of trustees is governed by the Memorandum and Articles of Association. There are no restrictions in the governing document on the operation of the charity or on its investment powers, other than those imposed by general charity law.

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Mrs S Stewart

Mrs M Allen

Mr R Thompson Mrs Sarah Fisk

Mrs Stephanie Sillett

When new or additional trustees are required, the beneficiaries and client organisations are invited to submit nominations, and subject to their compliance with the Memorandum and Articles of Association, they are considered by the governing body of trustees for election.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees’ report was approved by the Board of Trustees.

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Date: At. 2:2

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MEADOW BROOK PLAYCARE

. INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MEADOW BROOK PLAYCARE

| report to the trustees on my examination of the financial statements of Meadow Brook Playcare (the charity) for the year ended 31 May 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, | 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 | have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. ! confirm that | am qualified to undertake the examination because | am a member of ACCA, which is one of the listed bodies.

| have completed my examination. | 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 charity as required by section 386 of the 2006 Act; or

• 2 __ the financial statements do not accord with those records; or

• 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

• 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

| 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.

Carl Page FCCA

Ensors Accountants LLP Blyth House

Rendham Road Saxmundham

Suffolk IP17 1WA

Dated: 74:02; tou

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MEADOW BROOK PLAYCARE

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STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2021

		Unrestricted	Unrestricted
		funds	funds
		2021	2020
	Notes	£	£
Income from:
Charitable activities	3	346,069	327,469
Othertrading activities	4	-	331
investments	5	35	152
Total income		346,104	327,952
Expenditure on:
Charitable activities	6	329,140	330,354
Other	40	80	-
Total resources expended		329,220	330,354
Net income/(expenditure) for the year/
Netmovement in funds		16,884	(2,402)
Fund balances at 1 June 2020		243,469	245,871
Fundbalancesat31May2021		260,353	243,469

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

Allincome 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.

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. MEADOW BROOK PLAYCARE

BALANCE SHEET

AS AT 31 MAY 2021

		2021		2020
	Notes	£	£	£	£
Fixed assets
Tangible assets	11		6,062		6,283
Current assets
Debtors	12	884		4,586
Cash at bank and in hand		259,447		239,004
		260,331		243,590
Creditors: amounts falling due within
one year	13	(6,040)		(6,404)
Net current assets			254,291		237,186
Total assets less current liabilities			260,353		243,469
Income funds
Unrestricted funds			260,353		243,469
			260,353		243,469

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 May 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 a

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Mrs S Stewart Mrs M Allen
Trustee Trustee
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Company Registration No. 06593494

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. MEADOW BROOK PLAYCARE

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

1 Accounting policies

Charity information

Meadow Brook Playcare is a private company limited by guarantee incorporated in England and Wales. The registered office is Blyth House, Rendham Road, Saxmundham, Suffolk, IP17 1WA.

• 1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (‘“FRS 102”) and the Charities SORP “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). 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 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts 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.

The Charity does not currently have any restricted funds.

1.4 Income

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.

Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

Charitable activities are measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts and other sales related taxes.

1.5 Expenditure Resources expended are accounted for on a accruals basis. Most expenditure is directly appointed to cost categories on the amount attributable to that activity in the year. Charitable activities costs included costs of preparation of the statutory accounts.

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_ MEADOW BROOK PLAYCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

• 1 Accounting policies

(Continued)

• 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost, 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:

Land and buildings 10% straight line Plant and machinery 25% reducing balance

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.

• 1.7 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).

• 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks.

• 1.9 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.

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 payments 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.

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. MEADOW BROOK PLAYCARE

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

1 Accounting policies

(Continued)

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

1.10 Employee benefits

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

1.11 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 Charitable activities

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		2021	2020
		£	£
Grants receivable for core activities		220,343	198,192
Playcare	fees	93,446	127,716
Coronavirus job retention scheme grants		32,160	1,481
Uniforms		120	80
		346,069	327,469

. MEADOW BROOK PLAYCARE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2021

4 Other trading activities

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		2021	2020
		£	£
	Fundraising events	-	331
5	Investments
		2021	2020
		£	£
	Interest receivable	35	162
6	Charitable activities
		2021	2020
		£	£
	Staffcosts	275,237	274,752
	Depreciation and impairment	2,178	2,346
	Resources, Ofsted feesand food	22,475	21,904
	CRB, recruitment, training and clothing costs	1,302	2,835
	Website costs	391	391
	Sundry	1,632	3,075
	Rent	9,073	10,812
	Rates	-	758
	Insurance	671	2
	Lightand heat	1,533	1,260
	Repairs and maintenance	3,820	4,064
	Postage and telephone	1,495	814
	Telephone and fax	2,030	1,975
	Accountancy and professional fees	7,303	5,366
		329,140	330,354
		329,140	330,354

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed expenses.

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MEADOW BROOK PLAYCARE

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

8 Employees

Number of employees

Number of employeesemployees
	2021	2020
The average monthly numberemployees during the yearwas:	19	20
Employment costs	2021	2020
	£	£
Wages and salaries	258,245	258,421
Social security costs	13,313	11,902
Other pension costs	3,679	4,429
	275,237	274,752

No employees during the year received employee benefits excluding employer pension costs of more than £60,000.

9 Key Management Remuneration

The key management of the charity comprises of the trustees and the manager and duty manager. The total employment benefits for the key management personnel of the school were £46,423 (2020 : £48,285).

10 Other

							Unrestricted	Total
							funds
								£
							2021	2020
Net	loss	on	disposal	oftamgible	fixed	assets	80	-
							80	-

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MEADOW BROOK PLAYCARE

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

1. Tangible fixed assets

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11.	Tangible fixed assets
		Land and	Plant and	Total
		buildings	machinery
		£	£	£
	Cost
	At 1 June 2020	2,258	22,310	24,568
	Additions	~	2,036	2,036
	Disposals	~	(321)	(321)
	At 31 May 2021	2,258	24,025	26,283
	Depreciation and impairment
	At 1 June 2020	1,808	16,477	18,285
	Depreciation charged in the year	226	1,952	2,178
	Eliminated in respect ofdisposals	-	(242)	(242)
	At 31 May 2021	2,034	18,187	20,221
	Carrying amount
	At 31 May 2021	224	5,838	6,062
	At 31 May2020	450	5,833	6,283
12	Debtors
			2021	2020
	Amounts falling due within one year:		£	£
	Trade debtors		-	2,515
	Other debtors		103	1,481
	Prepayments and accrued income		781	590
			884	4,586
13	Creditors: amounts falling due within one year
			2021	2020
			£	£
	Othertaxation and social security		2,397	1,745
	Trade creditors		502	1,642
	Accruals and deferred income		3,141	3,017
			6,040	6,404

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” MEADOW BROOK PLAYCARE

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

14 Analysis of net assets between funds

Analysis of net assets between funds
	Unrestricted	Unrestricted
	funds	funds
	2021	2020
	£	£
Fund balances at 31 May 2021 are represented by:
Tangible assets	6,062	6,283
Current assets/(liabilities)	254,291	237,186
	260,353	243,469

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