**Charity Registration No. 1130467**
**Company Registration No. 06875332 (England and Wales)**
## **ALVERBRIDGE NURSERY**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2021**
## **ALVERBRIDGE NURSERY**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Trustees**
Mr Daniel Harvey Mrs Amelia Somerset Mrs Dawn Street Mrs Donna Earle Mrs Rosie Walters Mrs Natalie Burton Mrs Sally MacPherson
(Appointed 25 May 2021) (Appointed 21 July 2021) (Appointed 21 July 2021) (Appointed 21 July 2021) (Appointed 10 April 2022)
**Charity number** 1130467 **Company number** 06875332 **Registered office** 80 South Street Gosport Hampshire England PO12 1ES
## **Independent examiner**
Azets Audit Services Carnac Place Cams Hall Estate Fareham Hampshire United Kingdom PO16 8UY
## **ALVERBRIDGE NURSERY**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 6|
|Independent examiner's report|7|
|Statement of financial activities|8|
|Balance sheet|9 - 10|
|Notes to the financial statements|11 - 20|
## **ALVERBRIDGE NURSERY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
The trustees present their 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 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) (effective 1 January 2019)".
## **Objectives and activities**
## _Objectives_
The aims of the n ursery are to enhance the development and education of children , primarily under the statutory school age , by encouraging parents to understand and provide for the needs of their children through community groups and by:
- Offering 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 opportunities for all children whatever their race, culture, religion, means or ability;
- Encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs;
- Instigating, adhering to and furthering the aims and objects of the Early Years Alliance.
## _Powers_
The nursery is permitted by its articles of association to engage in any lawful activity as shall further its charitable objects and may invest money not immediately required for its objects in such investments, securities or property as the t rustees think fit .
## _Aims and strategies for attaining objectives_
The over-riding policies pursued in the attainment of the n ursery's objects are:
- to offer appropriate play, education and care facilities for children.
- to encourage the study of the needs of such children and their families and to promote public interest in recognition of such needs in local areas .
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
In November 2019 , the nursery was awarded its 4th consecutive OUTSTANDING OFSTED result since 2006. It continues to offer flexible hours of childcare ; its opening hours are from 7.30 a.m. to 6 p.m. Monday to Friday for 51 weeks a year. The aim of this service is to support the local community to enable parents to get back into the work place.
On a more personal note , the n ursery were delighted that their nomination of Shirley Faichen , the Nursery Manager , was successful ; Shirley Faichen was awarded a well - deserved MBE for Services to Education. The n ursery congratulates her. Shirley Faichen is the f ounder of the n ursery and n ursery m anager of 24 years ; she will retire at the end of the August 2021.
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## **ALVERBRIDGE NURSERY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
The nursery moved to its new home in 80 South Street in November 2017, completely refurbishing the existing building and building an additional building on site to provide an outstanding provision for local children and families. The nursery rents its new home from the Council on a rolling 10 - year lease which was signed in July 2017. The Council will not charge rent on the new build for 10 years. A £70k loan in the form of an overdraft facility was put in place with CAF bank shortly after the 2017 AGM authorised it. It would allow the n ursery to protect its reserves , which were depleted by the cost of the build/refurbishment , and to ensure the n ursery could continue to manage its cashflow in the future , whil st rebuilding reserves. As the loan is unsecured , the n ursery must submit quarterly updates to CAF Bank on its financial status ; it has agreed with CAF that it will aim to make at least a £ 20k operating profit until the loan is repaid. The final repayment is due in December 2021. The total project cost £271k ; it was fully funded by the nursery with the support of its staff, families and community.
This year’s activit ies continued to be dominated by the ongoing Covid p andemic , which started in March 20 20 . The nursery’s priorities in 2020-21 were to keep its staff, children and families safe, provide support to its local community keyworkers and vulnerable families, provide stability and fun for the children it saw and online resources for its children at home and , finally , to protect its future and team’s livelihood. The n ursery remained open throughout.
Operating costs during Covid: The nursery operated in 2 bubbles for most of the year, splitting both the entire nursery site in two. While the main infrastructure to allow this was put in place the first year, the nursery continued to need to make additional investments to support this, including a fogging machine , adding to its rigorous cleaning routines , and other equipment to ensure that all children and staff had the same facilities available regardless of which bubble they belonged to. Management time remained higher than normal, as the nursery needed to react quickly to the ongoing changing guidance and changing staff rotas. Staffing bubbles w ere also more costly as 2 members of staff for each bubble were required , even at quiet times, and additional time was required for cleaning. With smaller teams operating in each bubble, covering any absence would add to the pressure on the remaining team. The trustees employed an additional member of staff for 6 months to provide extra cover and ensure much - needed staff holidays were not disrupted. All absence s due to C ovid/isolating w ere paid for at 100% of the staffs ' normal salary, giving the staff financial stability in an uncertain time.
Income during Covid: The Government continued to protect its funding income as if all the children attended throughout ; this protected half of the nursery’s income stream. Parents were not charged for absence s linked to C ovid, encouraging them to not attend if family members or children were ill. As the pandemic progressed, parents needed to return to work and we saw an increasing number of children attending regularly . W ith over two - thirds of our parents c onsidering themselves to be keyworkers, there would be very little impact on numbers if the government changed lockdown rules. This added to the pressure of working in bubbles and the nursery team were pleased to return to one bubble in the summer.
The n ursery continued to invest in its outside area, adding an outside fire alarm, pruning all the trees on site and buying wooden play equipment for both the Cygnet and Swan playgrounds, which have proved hugely popular with the children. At the end of the year , it used the parents ' fundraising income to order a large wooden slide and climbing area for the older children ; due to C ovid this was not delivered until 2022. In addition to this , the Nursery made several purchases updating its older IT equipment.
It is the aim of Alverbridge to ensure that all individuals, whatever their circumstances , feel fully empowered and supported in the process of guiding their child on their educational journey. Alverbridge believes that positive relationship s with parents is the key to not only the child's wellbeing , but the wellbeing of the whole family, supporting individuals towards the future. Covid has made this more challenging, with parents unable to visit the nursery and drop - off and collections limited in time due to the possibility of Covid transmission. The n ursery found new ways to talk to parents, introducing an active Facebook page, giving activities for families and children to try at home and stories to listen to when unable to attend , and our first AGM via Z oom. We were disappointed to not be able to hold our family days and Christmas Show ; even Santa dropped presents off in the car park this year. We look forward to being able to return to more face - to - face contact as soon as possible.
The n ursery continues to prioritise access for vulnerable 2 year olds into the nursery.
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## **ALVERBRIDGE NURSERY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## The n ursery continues to supply childcare directly to Hampshire County Council as an independent provider.
Living wage increase d 2.2% in April 2021 ; the Trustees approve d a 2.8% increase in wages to its team. It hopes by increasing the salaries slightly faster than the increase in living wage , it commits to recognising the skill of the staff who work in a living wage industry and will allow the nursery to retain and recruit in the coming year. The nursery receive d a 5p increase in hourly rate from the C ouncil (1% rise) ; this will not begin to cover the increase in living wage. The t rustees ' ethos when setting hourly rates is to keep them as low as possible, enabling as many local children as possible to have access to o utstanding n ursery care. The trustees decide d that , from September 2021 , the private funding rate will be increased higher than the funded rate to £4.65/ hour. They will keep other meal contributions the same as previously, continuing to subsidise the popular hot lunches it offers once a day. However, it replaces its termly snack donation with a daily snack and consumable donation of 50p per day for funded children. The n ursery remains much cheaper than most local nurseries, keeping its fees to a minimum to allow access to an outstanding setting for all.
30 - hour funding remains popular with parents, increasing the ratio of funded income to private in the summer term. The nursery continues not to set a limit on parents claiming 30 - hour funding despite the G overnment funding rate being lower than our private rate.
The Cygnet room accommodates up to 12 babies. The n ursery continues to increase its staff cover as necessary to maintain the outstanding level of care it offers to each child.
The n ursery continues to be in a position to provide childcare for special needs children which regularly demands a higher number of staff hours. The n ursery also provides high levels of individual support to children and families requiring additional assistance and care or liaison with outside agencies.
The n ursery continues to work closely with Social Services to accommodate any identified vulnerable children into its setting, in exceptional circumstances providing unfunded free child care to ensure the needs of the children and family are met.
## The n ursery maintained its level 5 hygiene classification.
The nursery continues to encourage staff development. A member of staff successfully completed their level 6 qualification, another member of staff completed her level 7. This year various staff have had access to training such as EHCO (Emotional Health Co-ordinator – now known as an Early Years ELSA), first aid, food hygiene and health and safety. Outstanding practice is supported and shared within Hampshire by our m anager , Dawn Street , who holds the LFSP role (Leading Foundation Stage Practitioner) , hosting open evenings and supporting other settings in situ. Dawn assists other Early Year Settings through sharing Alverbridge's good practice s . In - house staff training continues to be given during term during day closures, where we cover topics such as sharing Early Year ELSA tools and techniques, Makaton to aid communication and working on the revised Early Years Foundation Stage curriculum development. A staff meeting is held once a month in the evening ; this covers the general day to day aspects of the nursery.
## The n ursery also offers childcare experience to local students and special needs young adults.
The n ursery offers a pension scheme through NEST (National Employment Saving Trust) offering staff a contribution based on Qualifying Earnings.
The n ursery introduced a cycle to work scheme in April 2015 ; this is repeated annually on request of its staff.
The n ursery has held various family events, including various open days, its Christmas show and a summer sports afternoon, increasing its involvement with its community and families. Regular parent s evenings are also offered – currently via telephone. Unfortunately face - to - face events have been suspended during the C ovid pandemic ; the nursery looks forward to re-introducing them when it is safe to do so. The nursery were developing their relationship with the library, with weekly visits to rhyme time ; this will resume as soon as Covid rules allow.
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## **ALVERBRIDGE NURSERY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
In addition to this , the nursery has also had to close its doors to outside visitors in line with guidance , so only children and staff enter the nursery, with parents dropping off at the door. The staff have been relieved to see how resilient the children have been through all these changes; the happiness of those able to attend and the joy at returning to nursery after lock down by those who were kept off. The nursery has also admired the flexibility of its team, adapting to changing working practices and overcoming their worries by attending work and continuing to make the n ursery an amazing place for children to attend.
## **Financial review**
## _Review of financial position_
The t rustees consider that the state of affairs of the n ursery is satisfactory and that, on a fund - by - fund basis, the c harity's assets are available and adequate to fulfil its obligations.
## _Reserves policy_
The n ursery's policy on retention of reserves is to:
- utilise income received for restricted purposes as soon as reasonably possible after receipt.
- retain sufficient unrestricted funds to ensure that the n ursery has the resources to withstand any unforeseeable financial setback, take advantage of an opportunity, or temporarily finance a restricted activity in advance of the receipt of the related grant income. The nursery used its reserves to move the nursery to a new location in November 2017, it took out a loan with CAF Bank to act as its reserves until they are replaced over a period of 4 years. The members had voted to allow the trustees to take this loan at the AGM in March 2017. The loan was paid off regularly though out this financial year and will be paid back in full by December 2021, the trustees believe this loan has successfully allowed the nursery time to replenish its reserves following the move and provided a safety margin during uncertain economic times.
## _Risk factors_
The Committee has reviewed the major risks to which it considers the Nursery is exposed and has ensured that adequate systems have been established to mitigate those risks.
## _Future plans_
Dawn Street, who joined the nursery 17 years ago, takes on full responsibility of m anaging the n ursery from September 2021 . S he has co-managed it with Shirley for a few years as part of a transition plan for Shirley’s retirement. The n ursery will recruit a second Deputy Manager in September to join Pauline Brazier in supporting Dawn manage the n ursery and ensuring it remains an outstanding setting for our local children.
The living wage increases again dramatically by 6.6% (59p an hour) in April 2022 ; wages continue to be the most important running cost to the nursery (83% of its running costs). The nursery wants to ensure that it meets or exceeds the living wage ; we want to offer a package to our team which will encourage them to stay with the nursery and understand that they are valued by the m anagement team and the c ommittee. In addition to the financial package , the nursery has also accommodated over the last few years many flexible working requests ; this means that many of our staff have had their hours adjusted to give them a better work life balance. The new salaries from April will cost the nursery an additional £24,000 in the next 12 months.
HCC have given a welcome 16p increase in hourly funding rate, however , this will only cover £8.7k of the salary rise. In addition to this increase , the nursery is also being hit with rising electricity, food, cleaning and refuse collection costs. The trustees have regretfully increased the hourly rate from September to £4.90/hour ; this will generate £14k towards the salary rise. They have also introduced a 50p per half - day contribution towards the cost of snack s by all funded children . A long with careful budgeting , the nursery should be able to run a breakeven budget. The nursery has currently sufficient reserves to cover unexpected economic or business needs, so does not feel that it needs to generate a profit this year. Any profit made will be ringfenced to cover future rental increases. It does , however , hope to recommence fundraising for investment in larger items not covered by its normal budget .
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## **ALVERBRIDGE NURSERY**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
The t rustees decide d to use the profit from this financial year to renew the nursery interior which was set up on a shoe - string budget when the n ursery moved in 2017 (as all of its reserves were used in converting and extending the site for use as a n ursery). The nu rsery introduce d the Curiosity Approach and adapts its nursery interior to suit . I n addition , the new Early Years Curriculum Framework allows the m anagement to tailor the curriculum for our children ; the n ursery invests in developing its woodwork, cookery, trips outside the n ursery and sewing activities for the children.
With regards to the future, this 2022-23 sees the n ursery operating under a new management team, with a new curriculum and under new C ovid guidelines . T he last 3 years have required constant adaptation and reaction to change ; the n ursery will now need a period of consolidation .
## **Structure, governance and management**
## _Governing document_
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## _Constitution_
The n ursery is a company limited by guarantee and a charity registered under the Charities Act 2011. The c ompany commenced activities on 1 September 2009 following the transfer of the activities to it from the unincorporated charity known as Alverbridge Pre-School.
The articles of association require that the n ursery be managed by a m anagement c ommittee (the c ommittee) the members of which are directors and managing trustees respectively within the meaning of the Companies Act 2006 and the Charities Act 2011.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr Daniel Harvey Mrs Amelia Somerset Mrs Dawn Street (Appointed 25 May 2021) Mrs Donna Earle (Appointed 21 July 2021) Mrs Rosie Walters (Appointed 21 July 2021) Mrs Natalie Burton (Appointed 21 July 2021) Mrs Sally MacPherson (Appointed 10 April 2022) Mrs Shirley Faichen (Resigned 31 August 2021) Mrs Emma Daly (Resigned 23 July 2021) Mr Lawrence Perry (Resigned 31 August 2021) Dr Jennifer Perry (Resigned 31 August 2021)
## _Appointment of trustees_
The t rustees have been appointed on the basis of their knowledge of the educational and socio-economic needs of the inhabitants in the area of benefit. Trustees have been in receipt of initial induction.
## _How decisions are made_
T he c ommittee meets approximately every two months. Operating decisions are made by majority decision of a quorate c ommittee. Constitutional matters including election of trustees are decided by a simple majority unless a larger majority is required under the Companies Act 2006.
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## **ALVERBRIDGE 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.
## **Mr Daniel Harvey**
Trustee Dated: 25 May 2022
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## **ALVERBRIDGE NURSERY**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ALVERBRIDGE NURSERY**
I report to the trustees on my examination of the financial statements of Alverbridge 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**
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. I confirm that I am qualified to undertake the examination because I am a member of ACCA, 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 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).
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.
James Reilly ACCA
Azets Audit Services Carnac Place Cams Hall Estate Fareham Hampshire PO16 8UY United Kingdom
Dated: 26 May 2022
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## **ALVERBRIDGE NURSERY**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
285,555
8,499
Charitable activities
**4**
260,671
-
Other trading activities
**5**
776
-
Investments
**6**
613
-
Other income
**7**
-
-
**Total income**
547,615
8,499
**Expenditure on:**
Raising funds
**8**
3,014
-
Charitable activities
**9**
531,457
9,076
Other
**13**
1,784
-
**Total resources**
**expended**
536,255
9,076
**Net incoming/**
**(outgoing) resources**
**before transfers**
11,360
(577)
Gross transfers
between funds
(241)
241
**Net income/(expenditure)**
**for the year/**
**Net movement in funds**
11,119
(336)
Fund balances at 1
September 2020
313,697
336
**Fund balances at 31**
**August 2021**
324,816
-|**Total**Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
**£**
**£**
294,054
338,898
1,095
260,671
181,070
-
776
-
-
613
937
-
-
766
-
556,114
521,671
1,095
3,014
833
-
540,533
487,812
759
1,784
1,586
-
545,331
490,231
759
10,783
31,440
336
-
-
-
10,783
31,440
336
314,033
282,258
-
324,816
313,698
336|Total
2020
**£**
339,993
181,070
-
937
766
522,766
833
488,571
1,586
490,990
31,776
-
31,776
282,258
314,034|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
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.
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## **ALVERBRIDGE NURSERY**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**14**
**Current assets**
Stocks
**15**
Debtors
**16**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**18**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**19**
**Net assets**
**Income funds**
Restricted funds
Unrestricted funds|**2021**
**£**
223
6,906
167,714
174,843
(15,719)|**£**
165,692
159,124
324,816
-
324,816
-
324,816
324,816|**2020**
**£**
88
6,273
158,909
165,270
(29,426)|**£**
184,968
135,844
320,812
(6,778)
314,034
336
313,698
314,034|
|---|---|---|---|---|
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## **ALVERBRIDGE NURSERY**
## **BALANCE SHEET (CONTINUED)**
## _**AS AT 31 AUGUST 2021**_
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 25 May 2022
Mrs Amelia Somerset
**Trustee**
## **Company Registration No. 06875332**
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## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
## **Charity information**
Alverbridge Nursery is a private company limited by guarantee incorporated in England and Wales. The registered office is 80 South Street, Gosport, Hampshire, PO12 1ES, England.
## **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) (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 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.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **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.
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.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, are recognised when the charity has entitlement to the funds, 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 and is not deferred.
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## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis under the following headings.
Costs of raising funds comprises fundraising costs incurred in seeking donations and grants . Fundraising costs do not include the costs of disseminating information of support of the charitable activities.
Expenditure on charitable activities includes the costs of running the nursery undertaken to further the purposes of the charity and their associated support costs.
Support costs comprise those costs which are incurred directly in support of expenditure on the objects of the charity and include governance cost, finance, and office costs. Governance costs are those costs incurred in connection with the compliance with constitutional and statutory requirements of the charity.
Support costs are allocated to the principal activity of the charity, being the day-to-day running of the nursery . More detail on the analysis and basis of allocation is given in note 9 to the financial statements.
## **1.6 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:
Leasehold improvements Straight line over 10 years Baby room equipment 25% on reducing balance Playground equipment Straight line over 3 years Kitchen and office equipment 25% on 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 net income/(expenditure) for the year.
## **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 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.9 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.
## **1.10 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 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.
## **1.11 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.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
- 13 -
## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **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**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
-
-
Grants
285,555
8,499
285,555
8,499
**Grants receivable for**
**core activities**
Government grants
276,824
8,499
Coronavirus Job
Retention Scheme
grants
7,553
-
Other grants
1,178
-
285,555
8,499|**Total**Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
£
£
-
1,529
-
294,054
337,369
1,095
294,054
338,898
1,095
285,323
317,475
1,095
7,553
19,894
-
1,178
-
-
294,054
337,369
1,095|Total
2020
£
1,529
338,464
339,993
318,570
19,894
-
338,464|
|---|---|---|
## **4 Charitable activities**
|Fees receivable
Uniform income
Other income|**2021**
**£**
260,383
288
-
260,671|**2020**
**£**
177,813
-
3,257
181,070|
|---|---|---|
- 14 -
## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|**5**
**6**
**7**
**8**|**Other trading activities**
**Unrestricted**
Total
**funds**
**2021**
2020
**£**
£
Fundraising events
776
-
**Investments**
**Unrestricted**Unrestricted
**funds**
funds
**2021**
2020
**£**
£
Bank interest receivable
613
937
**Other income**
**Total**Unrestricted
funds
**2021**
2020
**£**
£
Net gain on disposal of tangible fixed assets
-
766
**Raising funds**
**Unrestricted**Unrestricted
**funds**
funds
**2021**
2020
**£**
£
Fundraising and publicity
Other fundraising costs
1,888
2,055
Trading costs
Other trading activities
1,126
(1,222)
3,014
833|
|---|---|
- 15 -
## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **9 Charitable activities**
|Staff costs
Depreciation and impairment
Didactic equipment and toys
Food and nappies
Staff training
Local projects
Rent of rooms, water rates and electricity
Travelling
Printing, postage and stationery
Telephone
Repairs and maintenance
Cleaning and waste disposal
Insurance
Computer consumables
Bank charges
Share of governance costs (see note 10)
**Analysis by fund**
Unrestricted funds
Restricted funds
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Independent
examination fees
-
3,392
Legal and professional
-
735
-
4,127
Analysed between
Charitable activities
-
4,127|**2021**
**£**
3,392
735
4,127
4,127|**Nursery**
**2021**
**£**
426,352
31,856
2,910
23,108
1,847
2,730
19,050
400
332
340
6,126
15,175
2,469
2,310
1,401
536,406
4,127
540,533
531,457
9,076
540,533
Support
costs
Governance
costs
£
£
-
3,124
-
-
-
3,124
-
3,124|**Nursery**
**2020**
**£**
376,957
32,568
4,220
18,375
911
334
18,383
2
660
461
11,712
13,479
2,467
2,624
2,294
485,447
3,124
488,571
487,812
759
488,571
2020
£
3,124
-
3,124
3,124|
|---|---|---|---|
## **10 Support costs**
- 16 -
## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **11 Trustees**
Two of the trustees received remuneration from the charity during the year (2020 - one) in accordance with the governing document of the charity.
Shirley Faichen was paid total remuneration of £33,755 (2020 - £32,331) in her capacity as Co-Manager of the Nursery.
Dawn Street was paid total remuneration of £13,283 (2020 - £nil) in her capacity as Co-Manager of the Nursery.
None of the trustees were remunerated for their trustee duties.
## **12 Employees**
The average monthly number of employees during the year was:
||**2021**|**2020**|
|---|---|---|
||**Number**|**Number**|
||26|24|
|**Employment costs**|**2021**|**2020**|
||**£**|**£**|
|Wages and salaries|398,423|352,971|
|Social security costs|20,845|17,965|
|Other pension costs|7,084|6,021|
||426,352|376,957|
|**Other**|||
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**2021**|2020|
|Net loss on disposal of tangible fixed assets|211|365|
|Sundry expenses|1,573|1,221|
||1,784|1,586|
## **13 Other**
- 17 -
## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|**14**
**Tangible fixed assets**
**Leasehold**
**improvements**
**Baby room**
**equipment**
**Playground**
**equipment**
**Kitchen and**
**office**
**equipment**
**£**
**£**
**£**
**£**
**Cost**
At 1 September 2020
246,163
12,770
45,122
15,738
Additions
-
143
10,789
1,859
Disposals
-
(2,392)
(204)
-
At 31 August 2021
246,163
10,521
55,707
17,597
**Depreciation and impairment**
At 1 September 2020
73,830
10,857
38,595
11,543
Depreciation charged in the year
24,616
503
5,224
1,513
Eliminated in respect of disposals
-
(2,181)
(204)
-
At 31 August 2021
98,446
9,179
43,615
13,056
**Carrying amount**
At 31 August 2021
147,717
1,342
12,092
4,541
At 31 August 2020
172,334
1,912
6,527
4,195
**15**
**Stocks**
**2021**
**£**
Finished goods and goods for resale
223
**16**
**Debtors**
**2021**
**Amounts falling due within one year:**
**£**
Trade debtors
4,323
Prepayments and accrued income
2,583
6,906|**Total**
**£**
319,793
12,791
(2,596)
329,988
134,825
31,856
(2,385)
164,296
165,692
184,968
**2020**
**£**
88
**2020**
**£**
3,690
2,583
6,273|
|---|---|
- 18 -
## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **17 Loans and overdrafts**
|Bank overdrafts
Bank loans
Payable within one year
Payable after one year
**18**
**Creditors: amounts falling due within one year**
**Notes**
Bank loans and overdrafts
**17**
Trade creditors
Other creditors
Accruals and deferred income
**19**
**Creditors: amounts falling due after more than one year**
**Notes**
Bank loans
**17**
**20**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**Unrestricted
funds
**2021**
**2021**
**2021**
2020
**£**
**£**
**£**
£
Fund balances at 31
August 2021 are
represented by:
Tangible assets
165,692
-
165,692
184,968
Current assets/
(liabilities)
159,124
-
159,124
135,508
Long term liabilities
-
-
-
(6,778)
324,816
-
324,816
313,698|**2021**
**£**
-
6,778
6,778
6,778
-
**2021**
**£**
6,778
1,811
3,770
3,360
15,719
**2021**
**£**
-
Restricted
funds
2020
£
-
336
-
336|**2020**
**£**
215
26,333
26,548
19,770
6,778
**2020**
**£**
19,770
450
6,117
3,089
29,426
**2020**
**£**
6,778
Total
2020
£
184,968
135,844
(6,778)
314,034|
|---|---|---|
- 19 -
## **ALVERBRIDGE NURSERY**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **21 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|83,068|78,715|
There were no other disclosable related party transactions during the year (2020 - none) .
- 20 -
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