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2021-02-28-accounts

Company registration number: 06821449 Charity registration number: 1130313

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

(A company limited by guarantee)

Annual Report and Financial Statements for the Year Ended 28 February 2021

David Turner, AIMS Accountancy 32 Caxton House Northampton Science Park Kings Park Road, Moulton Park Northampton NN3 6LG

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Contents

Reference and Administrative Details 1
Strategic Report 2
Trustees' Report 3 to 5
Statement of Trustees' Responsibilities 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 to 15

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Reference and Administrative Details

Trustees C E Buckle L Freebody M A Dickerson R K Sailopal Secretary C E Buckle Principal Office Oakway Wellingborough Northamptonshire NN8 4SD Registered Office Oakway Wellingborough Northamptonshire NN8 4SD The charity is incorporated in England. Company Registration Number 06821449 Charity Registration Number 1130313 Bankers HSBC Bank PLC Wellingborough 47 Market Street Wellingborough Northamptonshire NN8 1AE Independent Examiner David Turner, AIMS Accountancy 32 Caxton House Northampton Science Park Kings Park Road, Moulton Park Northampton NN3 6LG

Page 1

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Strategic Report for the Year Ended 28 February 2021

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 28 February 2021, in compliance with s414C of the Companies Act 2006.

Achievements and performance

When the day nursery first opened in September 2009 the initial intake was 19 children. For the Spring 2010 term this increased to 24 children. The target number to children for the efficient running of the day nursery is 24 per session.

Funding for the provision of our services is provided entirely by Northamptonshire County Council as part of the Early Education Funding (EEF) programme.

The strategic report was approved by the trustees of the charity on 16 November 2021 and signed on its behalf by:

......................................... C E Buckle Trustee

Page 2

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 28 February 2021.

Objectives and activities

Objects and aims

Our charity’s purpose as set out in the objects contained in the company’s Memorandum of Association is 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 and by:

(a) offering appropriate play, education and care facilities, family learning and extended hours groups ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability;

(b) working in partnership with other professionals to best support the needs of the children and their families attending or accessing the services provided by organisations on the Oakway Schools site.

The income and property of the charity shall be applied solely towards the promotion of the Objects.

In September 2009 the company commenced the activity of a day nursery and took in its first group of pre-school aged children.

Public benefit

The trustees are aware of the requirements of the Charities Act 2011 regarding the reporting of the public benefit of charity. The trustees recognise that, for the period ended 28 February 2021, their report is required to include such a report. In setting the charity's objectives and planning activities, the trustees and management have given consideration to the Charity Commission's general guidance on public benefit and believes that the charity meets the public benefit requirement.

The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Structure, governance and management

Governing Document

The organisation is a charitable company limited by guarantee, incorporated on 17 February 2009 and registered as a charity on 24 June 2009. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £10 each.

Recruitment and Appointment of Trustees

The directors of the company are also the charity trustees for the purpose of charity law.

As required under the Articles of Association, at the first Annual General Meeting all of the Directors retired from office. All those directors were re-elected. At future Annual General Meetings one-third of the directors must retire. The Directors to retire by rotation shall be those who have been longest in office since their last appointment. The directors retiring by rotation may be re-elected at the Annual General Meeting. The number of Directors shall be not less than three but shall not be subject to any maximum.

Page 3

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Trustees' Report

The current directors all work in local education.

Responsibilities of the Management Committee

Company law requires the Management Committee to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the management committee should follow best practice and:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent; and

prepare the financial statements on the going concern basis unless it is not appropriate to assume that the company will continue on that basis.

The Management Committee is responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Management Committee is also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Members of the Management Committee

Members of the Management Committee, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 1 of these financial statements.

Financial Review

Aside from any private donations, the principal funding source for the charity is by way of grants from Northamptonshire County Council.

The new building and equipment was funded from capital grants. These capital grants are offset against the cost of the asset in line with standard accounting principles. The building costs show in the balance sheet at £9,182. This represents total costs of £104,025 less £94,843 total grants received.

The running costs of the day nursery are funded entirely by the council as part of the Early Education Funding (EEF) programme. Funds are received each school term depending on the number of children attending.

Reserves Policy

At the balance sheet date the charity had reserves of £48,792. This comprised a bank balance of £43,774, fixed assets of £9,182 less committed expenses of £4,164.

As the charity receives regular grants from the council to cover the day-to-day running costs of the day nursery, this level of reserves is considered to be sufficient and prudent by the directors. The directors consider it prudent for all funds to be held in the charity company’s bank account, where it is instantly accessible when required.

The charitable company does not hold any assets or funds as a “Custodian Trustee”.

Page 4

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Trustees' Report

Independent Examiner

Under company and charity law, due to its size the charitable company’s accounts do not need an audit but still need to be independently examined by an independent person with suitable financial and practical experience. David Turner of AIMS Accountancy was appointed as Independent Examiner during the year and has expressed his willingness to continue in that capacity.

The annual report was approved by the trustees of the charity on 16 November 2021 and signed on its behalf by:

......................................... C E Buckle Trustee

Page 5

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Statement of Trustees' Responsibilities

The trustees (who are also the directors of DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees of the charity on 16 November 2021 and signed on its behalf by:

......................................... C E Buckle Trustee

Page 6

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Independent Examiner's Report to the trustees of DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

I report on the accounts of the charity for the year ended 28 February 2021 which are set out on pages 8 to 15 .

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

have not been met; or

......................................

David Turner, AIMS Accountancy

32 Caxton House Northampton Science Park Kings Park Road, Moulton Park Northampton NN3 6LG

16 November 2021

Page 7

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Statement of Financial Activities for the Year Ended 28 February 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Investment income
4
Other income
Total Income
Expenditure on:
Raising funds
Charitable activities
5
Total Expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
11
Note
Income and Endowments from:
Donations and legacies
3
Investment income
4
Total Income
Expenditure on:
Raising funds
Charitable activities
5
Total Expenditure
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
11		 Unrestricted
funds
£
72,627
13
10,000
82,640
(71,951)
(2,574)
(74,525)
8,115
8,115
40,677
48,792
Unrestricted
funds
£
76,304
40
76,344
(82,704)
(2,654)
(85,358)
(9,014)
(9,014)
49,691
40,677		 Total
2021
£
72,627
13
10,000
82,640
(71,951)
(2,574)
(74,525)
8,115
8,115
40,677
48,792
Total
2020
£
76,304
40
76,344
(82,704)
(2,654)
(85,358)
(9,014)
(9,014)
49,691
40,677

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 11.

Page 8

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

(Registration number: 06821449) Balance Sheet as at 28 February 2021

Note
Fixed assets
Tangible assets
9
Current assets
Cash at bank and in hand
Creditors: Amounts falling due within one year
10
Net current assets
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
11		 2021
£
9,182
43,774
(4,164)
39,610
48,792
48,792
48,792		 2020
£
9,182
35,378
(3,883)
31,495
40,677
40,677
40,677

For the financial year ending 28 February 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

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

The financial statements on pages 8 to 15 were approved by the trustees, and authorised for issue on 16 November 2021 and signed on their behalf by:

......................................... C E Buckle Trustee

Page 9

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Notes to the Financial Statements for the Year Ended 28 February 2021

1 Charity status

The charity is a charity limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Page 10

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Notes to the Financial Statements for the Year Ended 28 February 2021

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Page 11

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Notes to the Financial Statements for the Year Ended 28 February 2021

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

3 Income from donations and legacies

Grants, including capital grants;
Government grants
4
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
5
Expenditure on charitable activities
Note
Governance costs		 Unrestricted
funds
General
£
72,627
72,627
Unrestricted
funds
General
£
13
Unrestricted
funds
General
£
2,574		 Total
2021
£
72,627
72,627
Total
2021
£
13
Total
2021
£
2,574		 Total
2020
£
76,304
76,304
Total
2020
£
40
Total
2020
£
2,654

Page 12

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Notes to the Financial Statements for the Year Ended 28 February 2021

Direct costs
Wages and salaries
Staff pensions
Staff training
Rent
Repairs and maintenance
Insurance
Legal and professional
Accountancy fees
Trade subscriptions
Bank charges
Depreciation		 Grant
funding of
activity
£
2,569
65,942
1,175
13
2,009
243
748
310
1,483
-
33
-
74,525		 Total
2021
£
2,569
65,942
1,175
13
2,009
243
748
310
1,483
-
33
-
74,525		 Total
2020
£
8,696
69,120
1,167
1,514
1,823
265
628
668
1,211
77
70
119
85,358

£74,525 (2020 - £85,358) of the above expenditure was attributable to unrestricted funds and £Nil (2020 - £Nil) to restricted funds.

6 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

7 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries		 2021
£
65,942		 2020
£
69,120

No employee received emoluments of more than £60,000 during the year.

Page 13

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Notes to the Financial Statements for the Year Ended 28 February 2021

8 Taxation

The charity is a registered charity and is therefore exempt from taxation.

9 Tangible fixed assets

Cost
At 1 March 2020
At 28 February 2021
Depreciation
At 1 March 2020
At 28 February 2021
Net book value
At 28 February 2021
At 29 February 2020		 Land and
buildings
£
9,182
9,182
-
-
9,182
9,182		 Other
tangible
fixed asset
£
21,955
21,955
21,955
21,955
-
-		 Total
£
31,137
31,137
21,955
21,955
9,182
9,182

10 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals
11 Funds
Unrestricted funds
General		 Balance at 1
March 2020
£
(40,677)		 Incoming
resources
£
(82,640)		 2021
£
1,054
264
2,846
4,164
Resources
expended
£
74,525		 2020
£
419
873
2,591
3,883
Balance at
28 February
2021
£
(48,792)

Page 14

DIAMOND LEARNING COMMUNITY PRE SCHOOL LIMITED

Notes to the Financial Statements for the Year Ended 28 February 2021

Unrestricted funds
General
12 Analysis of net assets between
Tangible fixed assets
Current assets
Current liabilities
Total net assets
13 Analysis of net funds
Cash at bank and in hand
Net debt		 Balance at 1
March 2019
£
(49,691)
funds		 Incoming
resources
£
(76,344)
At 1 March
2020
£
35,378
35,378		 Resources
expended
£
Balance at
29 February
2020
£
85,358
(40,677)
Unrestricted
funds
General
£
Total funds
£
9,182
9,182
43,774
43,774
(4,164)
(4,164)
48,792
48,792
Cash flow
£
At 28 February
2021
£
8,396
43,774
8,396
43,774		 Balance at
29 February
2020
£
(40,677)
Total funds
£
9,182
43,774
(4,164)
48,792
43,774

Page 15