## Gosforth Nursery Ltd ## (A company limited by guarantee) Trustees' report and financial statements for the year ended 31 August 2021 Charity number: 1133546 Company number: 06952333 ## robinson+co (Gosforth) Limited ## Chartered Accountants ## GOSFORTH ## Gosforth Nursery Ltd (A company limited by guarantee) ## Contents ||Page| |---|---| |Legal and administrative information|1| |Trustees' report|2 - 4| |Independent examiners' report|5| |Statement of financial activities|6| |Balance sheet|7 - 8| |Cash flow statement|9| |Notes to the financial statements|10 - 20| ## Gosforth Nursery Ltd (A company limited by guarantee) ## Legal and administrative information |Charity number|1133546|| |---|---|---| |Company registration number|06952333|| |Business address|Gosforth Nursery Ltd|| ||Gosforth C of E School|| ||Wasdale Road|| ||GOSFORTH|| ||CA20 1AZ|| |Registered office|The Old Forge|| ||Beck Place|| ||GOSFORTH|| ||CA20 1AT|| |Trustees|N Moore-Miller|| ||C K Pyke|| ||D N Brooks|| ||T A Morris|| ||L J Risager Wilson Ponting|Appointed 17 February 2021| |Accountants|robinson+co (Gosforth) Limited|| ||The Old Forge|| ||Beck Place|| ||GOSFORTH|| ||CA20 1AT|| |Bankers|HSBC Bank plc|| ||69 Lowther Street|| ||WHITEHAVEN|| ||CA28 7AD|| Page 1 ## Gosforth Nursery Ltd ## (A company limited by guarantee) ## Report of the trustees (incorporating the directors' report) for the year ended 31 August 2021 The trustees present their report and the financial statements for the year ended 31 August 2021. The trustees, who are also directors of Gosforth Nursery Ltd for the purposes of company law and who served during the year and up to the date of this report are set out on page 1. ## Structure, governance and management ## Governing document Gosforth Nursery Limited is constituted as a company limited by guarantee and is a registered charity. The charitable company is governed by its Memorandum and Articles of Association dated 3 July 2009. ## Day to day management The Nursery is managed by Mrs Gillian Jackson. ## Trustees The aim is to maintain a trustee board with a range of skills which will be useful to the organisation. New trustees are taken through an induction procedure. ## Key management personnel remuneration The Trustees consider the Board of Trustees and the Nursery Manager as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All Trustees give of their time freely and no trustee remuneration was paid in the year. The pay of the charity's senior staff is reviewed annually and assessed to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles. ## Objectives and activities ## The Charitable Objects are: To enhance the development and education of children primarily under statutory school age by encouraging parents to understand and provide for the needs of their children through communtiy groups and by;- 1. Offering appropriate play, education and care facilities and training courses, together with the right of parents to take responsibility and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability; 2. Encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs; 3. Instigating and adhering to and furthering the aims and objects of the Pre-School Learning Alliance. ## We aim to:- 1. Provide high quality care and education for children primarily below statutory school age; 2. Work in partnership with parents to help children learn and develop; 3. Add to the life and well being of our local community; and 4. Offer children and their parents a service which promotes equality and values diversity. ## Public Benefit The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. ## Achievements and performance The nursery continues to provide outstanding care and education for children that is accessed by families in the local community and beyond; many parents working at the Sellafield nuclear site use the setting for childcare. Page 2 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Report of the trustees (incorporating the directors' report) for the year ended 31 August 2021 ## Achievements and performance (continued) The Nursery adhere to the reserves policy and have 3 months' worth of running costs set aside as per the current policy requirements. Emplaw remain engaged to provide expert advice and services to the nursery on a range of topics including but not limited to GDPR, policy updates and requirements and HR queries. The period brought a series of closures due to the ongoing Covid-19 pandemic, with an obvious impact on all aspects of the nursery and placing a particular priority on the trustees to keep all members safe. It was not possible to offer any out of school provision due to the ever-changing rules and regulations around Covid-19 and in addition there was staff absence through sickness and Covid-19 isolation. These issues had a detrimental effect on the nursery income. The furlough scheme was accessed where possible and financial support through grants from Copeland Borough Council was welcomed. There were a number of changes to staff and trustees/directors. The treasurer ended her term of office, providing an opportunity for a new member to join the management team. Staff were given a pay rise in June and an increase in fees payable by parents was planned for the start of the next period. The numbers of children attending the setting at the end of the year provided a positive position, with staff hours and roles secure. ## Financial review At the balance sheet date the charity held £160,708 (2020: £196,669) on unrestricted funds and £231,598 (2020: £245,222) on restricted funds, a satisfactory position. ## Reserves Gosforth Nursery Management Committee seeks to hold 3 months operating costs in reserves as part of their contingency planning process. At the date of this report this reserve fund was complete and stood at £50,000. ## Risk management The trustees have assessed the major strategic, business and operational risks to which the organisation is exposed. They are satisfied that systems are in place to mitigate the exposure to these risks. ## Plans for future periods Consideration will need to be given to staffing matters for the near future as older members make plans for retirement. Attempts should be made to attract younger people who may be considering a career in childcare and/or education to join the staff team. Further review of staff wages and fees payable by parents will be carried out in the coming period. Some repairs are required in the outdoor areas and research will be done to try and secure some funding for new equipment. Opportunities will be made for all members of the nursery community to join together in organised fundraising events. Page 3 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Report of the trustees (incorporating the directors' report) for the year ended 31 August 2021 ## Statement of trustees' responsibilities The trustees (who are also directors of Gosforth Nursery Ltd for the purpose of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which 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. ## Small company provisions This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. On behalf of the board D N Brooks Director Page 4 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Independent examiner's report to the trustees on the unaudited financial statements of Gosforth Nursery Ltd. I report on the accounts of Gosforth Nursery Ltd for the year ended 31 August 2021 set out on pages 6 to 20. ## Respective responsibilities of trustees and independent examiner The charity's trustees (who are also the directors of the company for 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 of the Charities Act 2011 (the Charities Act), and that an independent examination is needed. It is my responsibility to examine the accounts under section 145 of the Charities Act, to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Act, and to state whether particular matters have come to my attention. ## Basis of independent examiner's statement 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: - (i) which gives me reasonable cause to believe that in any material respect the requirements: - to keep proper accounting records in accordance with section 386 of the Companies Act 2006; and - to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities - have not been met; or - (ii) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. ........................................................... ## Mr J Spires FCA DChA ## Independent examiner robinson+co (Gosforth) Limited The Old Forge Beck Place Gosforth, Seascale CA20 1AT Page 5 ## Gosforth Nursery Ltd ## (A company limited by guarantee) ## Statement of financial activities (incorporating the income and expenditure account) ## For the year ended 31 August 2021 |Unrestricted
Restricted
funds
funds
Notes
£
£
Income
Income from charitable activities
2
104,326
78,069
Income from other trading activities:
Activities for generating funds
3
7,448
-
Investment income
4
7
-
Total income
111,781
78,069
Expenditure
Charitable activities
5
147,742
91,693
Total expenditure
147,742
91,693
Net income/(expenditure) for the year
)
(35,961
)
(13,624
Total funds brought forward
196,669
245,222
Total funds carried forward
160,708
231,598|2021
Total
£
182,395
7,448
7
189,850
239,435
239,435
)
(49,585
441,891
392,306|2020
Total
£
224,934
1,250
118
226,302
238,326
238,326
)
(12,024
453,915
441,891| |---|---|---| The statement of financial activities includes all gains and losses in the year and therefore a separate statement of total recognised gains and losses has not been prepared. All of the above amounts relate to continuing activities. The notes on pages 10 to 20 form an integral part of these financial statements. Page 6 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Balance sheet as at 31 August 2021 |Notes
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling
due within one year
14
Net current assets
Net assets
Funds
16
Restricted income funds
Unrestricted income funds
Total funds|2021
£
£
309,068
-
90,729
90,729
)
(7,491
83,238
392,306
231,598
160,708
392,306|2020
£
£
324,027
7,310
117,155
124,465
)
(6,601
117,864
441,891
245,222
196,669
441,891|2020
£
£
324,027
7,310
117,155
124,465
)
(6,601
117,864
441,891
245,222
196,669
441,891| |---|---|---|---| ||||441,891| ||||245,222
196,669| ||||441,891| The Balance Sheet continues on the following page. The notes on pages 10 to 20 form an integral part of these financial statements. Page 7 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Balance sheet (continued) ## Trustees statements required by the Companies Act 2006 for the year ended 31 August 2021 In approving these financial statements as trustees of the company we hereby confirm: (a) that for the year stated above the company was entitled to the exemption conferred by section 477 of the Companies Act 2006 ; (b) that no notice has been deposited at the registered office of the company pursuant to section 476 of the Companies Act 2006 requesting that an audit be conducted for the year ended 31 August 2021. (c) that we acknowledge our responsibilities for: (1) ensuring that the company keeps proper accounting records which comply with section 386 of the Companies Act 2006, and (2) preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for the year then ended in accordance with the requirements of sections 394 and 395, and which otherwise comply with the provisions of the Companies Act relating to financial statements, so far as applicable to the company. These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies . The financial statements were approved by the board on and signed on its behalf by ## D N Brooks Director The notes on pages 10 to 20 form an integral part of these financial statements. Page 8 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Cash flow statement ## for the year ended 31 August 2021 |Notes
Net cash used by operating activities
20
Cash flows from investing activities
Interest and dividends
Purchase of tangible fixed assets
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward|2021
£
)
(22,764
7
)
(3,669
)
(3,662
)
(26,426
117,155
90,729|2020
£
)
(1,986
118
118
)
(1,868
119,023
117,155| |---|---|---| The notes on pages 10 to 20 form an integral part of these financial statements. Page 9 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements for the year ended 31 August 2021 ## 1. Accounting policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are summarised below. ## 1.1. Basis of accounting The financial statements are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: 'Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The company constitutes a public benefit entity as defined by FRS 102. The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The presentational currency is UK Sterling pounds (£). ## 1.2. Income All income is included in the statement of financial activities once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following specific policies are applied to particular categories of income: Grants, including grants for the purchase of fixed assets, are recognised in full in the statement of financial activities in the year in which they are receivable. Income from investments is included in the year in which it is receivable. ## 1.3. Expenditure Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Costs of raising funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management and governance costs. Page 10 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements ## for the year ended 31 August 2021 ## 1.4. Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows: - Leasehold properties Straight line over the life of the lease - Fixtures, fittings and equipment 25% straight line ## 1.5. Financial instruments A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. ## 1.6. Defined contribution pension schemes The pension costs charged in the financial statements represent the contributions payable by the charity during the year. Page 11 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements for the year ended 31 August 2021 ## 1.7. Government grants Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis 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 and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability. ## 2. Income from charitable activities |Income from charitable activities||| |---|---|---| |Unrestricted
Restricted
funds
funds
£
£
Government grants
28,810
-
Fees from parents
75,516
-
Early years entitlements
-
78,069
104,326
78,069|2021
Total
£
28,810
75,516
78,069
182,395|2020
Total
£
50,247
95,276
79,411| |||224,934| In 2020 of the income from charitable activities, £79,411 was attributable to restricted income funds, with the balance of £145,523 being unrestricted. ## 3. Activities for generating funds |Activities for generating funds||| |---|---|---| |Unrestricted
funds
£
Fundraising events
945
Income from solar panels
6,503
7,448|2021
Total
£
945
6,503
7,448|2020
Total
£
217
1,033| |||1,250| In 2020 all of the income from activities for generating funds was attributable to unrestricted income funds. Page 12 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements for the year ended 31 August 2021 ## 4. Investment income |Investment income||| |---|---|---| |Unrestricted
funds
£
Bank interest receivable
7
7|2021
Total
£
7
7|2020
Total
£
118| |||118| In 2020 all of the investment income was attributable to unrestricted income funds. ## 5. Costs of charitable activities - by fund type |Costs of charitable activities - by fund type||| |---|---|---| |Unrestricted
Restricted
funds
funds
£
£
Operation of nursery
147,742
91,693
147,742
91,693|2021
Total
£
239,435
239,435|2020
Total
£
238,326| |||238,326| In 2020 of the costs of charitable activities, £93,035 was attributable to restricted funds, with the balance of £145,291 being unrestricted. ## 6. Costs of charitable activities - by activity |Costs of charitable activities - by activity|||| |---|---|---|---| |Activities
undertaken
directly
£
Operation of nursery
236,298
236,298|Support
costs
£
3,137
3,137|2021
Total
£
239,435
239,435|2020
Total
£
238,326| ||||238,326| Page 13 Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements ## for the year ended 31 August 2021 ## 7. Analysis of support costs |||Operation|Operation||2021||2020| |---|---|---|---|---|---|---|---| |||of nursery|||Total||Total| ||||£||£||£| ||Accountancy charges||972||972||888| ||Legal and professional fees||1,392||1,392||1,981| ||Bank charges||108||108||126| ||Sundry expenses||665||665||319| ||||3,137||3,137||3,314| |8.|Net outgoing resources for the year||||||| ||||||2021||2020| ||||||£||£| ||Net outgoing resources is stated after charging:||||||| ||Depreciation and other amounts written off tangible fixed assets||||18,628||17,954| Page 14 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements for the year ended 31 August 2021 ## 9. Employees ## Employment costs |||| |---|---|---| |Employment costs
Wages and salaries
Social security costs
Pension costs|2021
£
184,632
6,626
2,705
193,963|2020
£
180,865
6,630
2,425| |||189,920| No employee received emoluments of more than £60,000 (2020 : None). ## Number of employees The average monthly numbers of employees (including the trustees) during the year was as follows: ||2021|2020| |---|---|---| ||Number|Number| |Staff|18|17| During the year no expenses were paid to trustees (2020 - £nil). The key management personnel of the charity is comprised of the Board of Trustees and Nursery Manager. The total employment benefits of the key management personnel were £38,063 (2020: £40,163). ## 10. Pension costs The company operates a defined contribution pension scheme in respect of the NEST pension scheme. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and was as follows: |from the company and was as follows:||| |---|---|---| ||2021|2020| ||£|£| |Pension charge|2,705|2,425| Contributions amounting to £1,176 (2020: £969) were outstanding at the year end and are included within other creditors. ## 11. Taxation The charity's activities fall within the exemptions afforded by the provisions of the Income and Corporation Taxes Act 1988. Accordingly, there is no taxation charge in these accounts. Page 15 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements for the year ended 31 August 2021 |Short
Fixtures,
Tangible fixed assets
leasehold fittings and
property
equipment
£
£
Cost
At 1 September 2020
448,837
4,478
Additions
1,250
2,419
At 31 August 2021
450,087
6,897
Depreciation
At 1 September 2020
124,810
4,478
Charge for the year
18,023
605
At 31 August 2021
142,833
5,083
Net book values
At 31 August 2021
307,254
1,814
At 31 August 2020
324,027
-|Total
£
453,315
3,669| |---|---| ||456,984| ||129,288
18,628| ||147,916| ||309,068| ||324,027| ## 12. Tangible fixed assets Cost of short leasehold property consists of expenditure incurred constructing the purpose-built nursery (£434,647), the Pine Lodge (£6,690), and a shed (£7,500), together with property improvements in the year of £1,250. The nursery is leased from Cumbria County Council. ## 13. Debtors |13.
Debtors||| |---|---|---| |Other debtors
14.
Creditors: amounts falling due
within one year
Other taxes and social security
Other creditors
Accruals and deferred income|2021
£
-
2021
£
2,786
1,176
3,529
7,491|2020
£
7,310| |||2020
£
1,640
969
3,992| |||6,601| Page 16 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements for the year ended 31 August 2021 ## 15. Financial instruments The carrying amount for each category of financial instrument is as follows: |Financial assets :
Other debtors
Financial liabilities measured at amortised cost
Other creditors
Accruals|2021
£
-
2021
£
1,176
3,529
4,705|2020
£
7,310| |---|---|---| |||2020
£
969
3,992| |||4,961| ## 16. Analysis of net assets between funds |Analysis of net assets between funds|||||||| |---|---|---|---|---|---|---|---| ||Unrestricted||Restricted|||Total|| ||funds|||funds||funds|| ||£|||£||£|| |Fund balances at 31 August 2021 as represented by:|||||||| |Tangible fixed assets|77,470|||231,598||309,068|| |Current assets|90,729|||-||90,729|| |Current liabilities|)
(7,491|||-||)
(7,491|| ||160,708|||231,598||392,306|| ||Unrestricted||Restricted|||Total|| ||funds|||funds||funds|| ||£|||£||£|| |Fund balances at 31 August 2020 as represented by:|||||||| |Tangible fixed assets|78,805|||245,222||324,027|| |Current assets|124,465|||-||124,465|| |Current liabilities|)
(6,601|||-||)
(6,601|| ||196,669|||245,222||441,891|| Page 17 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements for the year ended 31 August 2021 ## 17. Anaysis of movements in unrestricted funds - current year |At
1 September
2020

£
General funds
196,669
Anaysis of movements in unrestricted funds - previous year
At
1 September
2019

£
General funds
195,069|Incoming
resources

£
111,781
Incoming
resources

£
146,891|At
Outgoing
31 August
resources
2021
£
£
)
(147,742
160,708
At
Outgoing
31 August
resources
2020
£
£
)
(145,291
196,669| |---|---|---| ## Purposes of unrestricted funds The charity's unrestricted funds can be used with the approval of the board of trustees to fund any expenditure which falls within the charity's general aims and objectives. Page 18 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements for the year ended 31 August 2021 ## 18. Analysis of movements in restricted funds - current year |Analysis of movements in restricted funds - current year|||| |---|---|---|---| |At
1 September
2020

£
Building grants and donations
245,222
Other restricted funds
-
245,222
Anaysis of movements in restricted funds - previous year
At
1 September
2019

£
Building grants and donations
258,846
Other restricted funds
-
258,846|Incoming
resources

£
-
78,069
78,069
Incoming
resources

£
-
79,411
79,411|At
Outgoing
31 August
resources
2021
£
£
)
(13,624
231,598
)
(78,069
-
)
(91,693
231,598
At
Outgoing
31 August
resources
2020
£
£
)
(13,624
245,222
)
(79,411
-
)
(93,035
245,222|| ||||245,222| ## Purposes of restricted funds Building grants and donations - these funds arise from grants and donations given for the building of a purpose-built nursery. The balance at the year end is represented entirely by building improvements made from the restricted fund, less accumultated depreciation thereon, with a net book value of £231,598. Other restricted funds include grants and donations where the funder or donor has specified the purpose for which the funds must be used. All such funding was fully spent at the balance sheet date. ## 19. Financial commitments At 31 August 2021 the company had annual commitments under non-cancellable operating leases as follows: ||Land and|buildings| |---|---|---| ||2021|2020| ||£|£| |Expiry date:||| |In over five years|737|731| Page 19 ## Gosforth Nursery Ltd (A company limited by guarantee) ## Notes to financial statements for the year ended 31 August 2021 ## 20. Reconciliation of net movement in funds to net cash flow from operating activities |Net movement in funds
Add back depreciation charge
Deduct interest income shown in investing activities
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash used by operating activities|2021
£
)
(49,585
18,628
)
(7
7,310
890
)
(22,764|2020
£
)
(12,024
17,954
)
(118
)
(7,310
)
(488
)
(1,986| |---|---|---| ## 21. Analysis of changes in net funds |Analysis of changes in net funds|||| |---|---|---|---| |Cash at bank and in hand
Net funds|Opening
balance
£
117,155
117,155|Cash
flows
£
)
(26,426
)
(26,426|Closing
balance
£
90,729| ||||90,729| ## 22. Company limited by guarantee Gosforth Nursery Ltd is a company limited by guarantee and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member. Page 20