## THE COTTAGE NURSERY (A Company limited by guarantee) TRUSTEE’S REPORT FOR THE YEAR ENDED 31[ST] AUGUST 2022 The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of The Cottage Nursery (the company) for the year ended 31[st] August 2022. The Trustees confirm that the annual report and the financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in January 2015. Since the company qualifies as ‘small’ under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 is not required. ## _**COVID-19**_ The Covid-19 pandemic continued to have an impact on the Nursery during the reporting period. Due to staff shortages as a result of the pandemic the nursery had to close one of the rooms for 1 day and over a period of three days, we were only able to offer places across the nursery for funded children or for working parents. Many of the changes that were made in the nursery remain in place. This includes the way the rooms were configured, the drop-off and pick-up arrangements, the way in which food is served and the way in which staff are utilised. The nursery continues to take on board the advice and processes, mandated and advisory from Oxfordshire County Council and Public Health England. Once again it is important to recognise that the Management and Staff have been quite superb in their response to the crisis throughout the year. Their professionalism, dedication, care and attention to detail has meant that the impact on children, their carers and the Trust has been minimised. ## **OBJECTIVES AND ACTIVITIES** The Cottage Nursery offers day care, sessional care and pre-school education to children aged from 3 months to 5 years. This year over 60% of the nursery’s membership were families working or studying at the Defence Academy, a number of whom were international families. The remainder were children from the local communities of Watchfield and Shrivenham. The aim of the nursery is to enhance the development and education of the children in its care by providing the best childcare available to the local community with a safe, secure and stimulating environment in which the children are encouraged to reach their full potential and where staff feel valued and engaged. The nursery follows the Early Years Foundation Stage (EYFS) with its planning and children take part in activities that are both age and stage appropriate. The Nursery keeps chickens (that provide a source of fresh eggs as well as having an educational benefit), and maintain planters that the children help to look after. There are regular walks into the locality of the Nursery which have provided an opportunity for children to see and learn more about nature. During the summer term, we offer a sports club facilitated by Premier eduction for our Lions Room. Page **1** of **6** All children are treated equally, and British Values are embedded in the way the nursery runs, with all staff undertaking Prevent Duty training. ## **PUBLIC BENEFIT** The Cottage Nursery provides care for children from both the local community and the military families attending the Defence Academy. In so doing it welcomes children from all backgrounds and nationalities and supports children and families for whom, in some cases, their first language is not English. The nursery supports any child with special education needs and has strong links with outside agencies provided by the local council. It also liaises with the local schools to aid the transition of children into the school system. The nursery actively promotes a Healthy Eating Policy providing healthy snacks and a ‘home-cooked’ lunch. Help and support is offered to parents to develop their children’s eating habits. The nursery will assist any parent who finds it hard to pay their nursery bill with a personalised payment plan, and will also offer support to vulnerable families. The nursery offers 2-year old funded places and also offers places to all children eligible for the 3 and 4-year-old funding, both the statutory 15 hours and the extended 30 hours where parents meet the criteria. It should be noted that the funding received for such places falls well short of the cost of actually providing those places. No Trustee received any private benefit or any other remuneration from the Charity. The Trustees have had regard to the Charity Commissions’ guidance on public benefit. ## **ACHIEVEMENTS AND PERFORMANCE** The year ended 31[st] August 2022 saw the nursery keeping its own books and records for the 19[th] year running. The bookkeeping services are the responsibility of the nursery Managers. The most recent Ofsted inspection was in June 2018 when the Nursery was assessed as ‘Good’. Since then the Nursery management and staff have continued to develop resources and best practice within the Nursery. This has been recognised by Oxfordshire County Council who now use the Nursery as an example of best practice for other providers. It goes without saying that the Trustees are delighted with the continued progress of the Nursery which we recognise is down to the hard work and diligent efforts of the management and all of the staff. Whilst it would be a great achievement for the Nursery to be assessed as Outstanding it is our aim to ensure that ‘Good’ is maintained and that the Nursery continues to aim for best practice and a safe and caring environment for the children. _We were thrilled to be able to hold our annual Christmas concert for our preschool children. Due to COVID-19 restrictions, this was held outside the nursery however we_ Page **2** of **6** _hope to be able to include this in our curriculum for December 2022 for all age groups in St. Alban’s Church, Watchfield._ _The Lending Library and our ‘activity at home’ bags reopened this year. We have continued to grow and develop the library with parents encouraged as part of the ‘Parents in Partnership’ ethos to ensure that children take the opportunity to borrow the books in the library. We have also re-open the lending library for parents._ Thanks to the generosity of parents and others who have taken part in the various fundraising activities we have continued to develop the outdoor play and activity areas and also purchased more outside play equipment. We continue to display the Recognition Board which provides the opportunity for parents and staff to thank and recognise staff who have gone over and beyond what might be expected. All parents are encouraged to add their comments to this Board when passing through the Nursery. ## **FINANCIAL REVIEW** A statement of the financial position and details of income and expenditure is provided to each Trustee meeting where it is reviewed by trustees and management. Reserves have been built up over previous financial years to cover redundancy and closure costs should the need ever arise to wind up the nursery. We also have £85,000 on deposit with the Charity Bank which not only diversifies our bank accounts but also pays a small amount of interest. Fees are reviewed annually and are fixed at a level that is expected to raise sufficient revenue to cover all necessary expenditure whilst remaining competitive within the local area. The nursery receives Nursery Education Funding for qualifying 2, 3- and 4-year olds, however, as stated earlier the level of funding received, which is set by local government, is significantly below the nursery’s hourly rate. This is a matter which is beyond the nursery’s control. The nursery is fully compliant with both the National Living Wage and Pension AutoEnrolment. The significant increase in the National Living Wage has put an additional strain on the Nursery but we are delighted to report that a consistency in child numbers throughout the year at the Nursery, and prudent management of expenses has enabled the Nursery to once again make a operating surplus this year which the Trustees would like to see invested back into the nursery. Although the encroachment status of the nursery continues to be reviewed annually, the Trustees remain grateful for the continued support of the Defence Academy with the provision of its building and main utilities. The Defence Academy has also been responsive to our maintenance needs and as a result we have well maintained buildings and facilities. The nursery is run as a self-funding body. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **a.] Constitution** The nursery is registered as a charitable company limited by guarantee (number 6535999). Page **3** of **6** The nursery is constituted under its Memorandum and Articles of Association dated 28[th] April 2008 (amendments made January 2011 and November 2018) and is a registered charity (number 1133631). ## **b.] Organisational Structure** The nursery is run jointly by two Managers, a Deputy Manager, a Supervisor and four Room Supervisors. All bookkeeping functions continue to be conducted in house however the payroll continues to be prepared by an outside Payroll Agency and a firm of Accountants is responsible for preparing the year end accounts. Health & Safety is looked after jointly by the two Managers and the Senior Room Supervisor, all fire related checks and PAT testing are carried out by Serco. There are four Safeguarding Officers, but all staff are trained on Safeguarding and Prevent. The Managers report to the Trustees who meet regularly; minutes of these meetings are kept and are available to all staff and parents as they act as a record of the nursery’s official business. Nursery staff are represented at Trustee meetings by the nursery Managers, this ensures a good and open flow of communication. Declarations of Interest are recorded when applicable. ## **c.] Training & induction of Trustees and staf** The responsibilities of the Trustees are documented in the constitution. Trustees are expected to serve a minimum of two years to a maximum of six years in post and are generally appointed from within the local community. Their appointment is ratified at the annual AGM. Trustees are expected to spend time during the working day at the nursery to familiarise themselves with the day to day operation and to meet the members of staff, however, this has been curtailed during the recent crisis. Copies of the policies and procedures are made available to them. All Trustees are subject to the same level of checks, including DBS checks, as members of staff. The majority of staff are qualified to a minimum of NVQ level 3 in childcare (or equivalent). However, staff are chosen not just for their qualifications but also for their individual caring skills. All staff are actively encouraged to continue to obtain new qualifications and further their learning. Safeguarding and first aid training are mandatory. ## **d.] Risk management** Regular risk assessments are carried out by the Managers, daily checks are done by the staff in all areas of the nursery. The Trustees have assessed the major risks to which the nursery is exposed, in particular those related to the operations and finances, and are satisfied that systems and procedures are in place to mitigate exposure to major risks. There are five lead Safeguarding Officers. Safeguarding and Prevent training is mandatory to level one for all staff. All staff must have a current DBS which is renewed every three years, they must also declare their suitability each term, this extends to ‘suitability by association’. All outside agencies working regularly within the nursery are required to have a current DBS and must declare their on-going suitability. They must also have suitable insurance cover. Page **4** of **6** Both Managers and the Chair of the Trustees have completed ‘Safer Recruitment’ training and SR practice is followed with every new recruitment of both staff and Trustees. ## **PLANS FOR THE FUTURE** The management structure has worked well during the year and there are no plans to alter this. In 2022-23 the plan is to consolidate the progress that has been made during the past few years and to continue to develop the outdoor facilities wherever possible. Building work, which began on the nursery building in July 2022, will continue. During the year we will refresh some of the décor both internally and externally and will also enhance the facilities and equipment in the rooms. The kitchen will also get some attention to ensure it continues to be safely equipped to deliver the number of meals that are now required on a daily basis. We will continue to invest in Training and development of staff so that they not only fully equipped to meet statutory requirements but also in aspects of child development and care that extend the reach of the Nursery. ## **TRUSTEE’S RESPONSIBILITIES STATEMENT** The Trustees (who are also Directors of The Cottage Nursery for the purposes of company law) are responsible for preparing the Trustee’s report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 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 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 accounting estimates that are reasonable and prudent. - Prepare the financial statements on the on-going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 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 declaration of fraud and other irregularities. This report was approved by the Trustees on and signed on their behalf by: Page **5** of **6** Trustee Page6of6 **Registered number: 6535999 Charity number: 1133631** ## **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **UNAUDITED** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 AUGUST 2022** ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **CONTENTS** ||Page| |---|---| |**Reference and administrative details of the Company, its Trustees and advisers**|1| |**Trustees' report**|2 - 7| |**Independent examiner's report**|8 - 9| |**Statement of financial activities**|10| |**Balance sheet**|11| |**Statement of cash flows**|12| |**Notes to the financial statements**|13 - 24| ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022** ## **Trustees** Timothy Miller (resigned 15 November 2021) Ella Biggs Ceri Nicholson (resigned 26 March 2022) David Russell Aideen Harold Hayley Ward (resigned 15 November 2021) Clare Thomas ## **Company registered number** 6535999 ## **Charity registered number** 1133631 ## **Registered office** Alexander Hall Watchfield Swindon Wiltshire SN6 8TS ## **Senior Management** Clare Olden, Joint Manager Trudi Krzywiec, Joint Manager ## **Accountants** James Cowper Kreston Audit Chartered Accountants Reading Bridge House George Street Reading Berkshire RG1 8LS Page 1 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022** The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of The Cottage Nursery (the company) for the year ended 31 August 2022. The Trustees confirm that the annual report and the financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in January 2019. Since the company qualifies as ‘small’ under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 is not required. ## **Objectives and activities** The Cottage Nursery offers day care, sessional care and pre-school education to children aged from 3 months to 5 years. This year over 60% of the nursery’s membership were families working or studying at the Defence Academy, a number of whom were international families. The remainder were children from the local communities of Watchfield and Shrivenham. The aim of the nursery is to enhance the development and education of the children in its care by providing the best childcare available to the local community with a safe, secure and stimulating environment in which the children are encouraged to reach their full potential and where staff feel valued and engaged. The nursery follows the Early Years Foundation Stage (EYFS) with its planning and children take part in activities that are both age and stage appropriate. The Nursery keeps chickens (that provide a source of fresh eggs as well as having an educational benefit), and maintain planters that the children help to look after. There are regular walks into the locality of the Nursery which have provided an opportunity for children to see and learn more about nature. During the summer term, we offer a sports club facilitated by Premier Education for our Lions Room. All children are treated equally, and British Values are embedded in the way the nursery runs, with all staff undertaking Prevent Duty training. Page 2 **THE COTTAGE NURSERY (A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Objectives and activities (continued)** ## **Covid-19** The Covid-19 pandemic continued to have an impact on the Nursery during the reporting period. Due to staff shortages as a result of the pandemic the nursery had to close one of the rooms for 1 day and over a period of three days, we were only able to offer places across the nursery for funded children or for working parents. Many of the changes that were made in the nursery remain in place. This includes the way the rooms were configured, the drop-off and pick-up arrangements, the way in which food is served and the way in which staff are utilised. The nursery continues to take on board the advice and processes, mandated and advisory from Oxfordshire County Council and Public Health England. Once again it is important to recognise that the Management and Staff have been quite superb in their response to the crisis throughout the year. Their professionalism, dedication, care and attention to detail has meant that the impact on children, their carers and the Trust has been minimised. ## **Public benefit** The Cottage Nursery provides care for children from both the local community and the military families attending the Defence Academy. In so doing it welcomes children from all backgrounds and nationalities and supports children and families for whom, in some cases, their first language is not English. The nursery supports any child with special education needs and has strong links with outside agencies provided by the local council. It also liaises with the local schools to aid the transition of children into the school system. The nursery actively promotes a Healthy Eating Policy providing healthy snacks and a ‘home-cooked’ lunch. Help and support is offered to parents to develop their children’s eating habits. The nursery will assist any parent who finds it hard to pay their nursery bill with a personalised payment plan, and will also offer support to vulnerable families. The nursery offers 2-year old funded places and also offers places to all children eligible for the 3 and 4-year-old funding, both the statutory 15 hours and the extended 30 hours where parents meet the criteria. It should be noted that the funding received for such places falls well short of the cost of actually providing those places. No Trustee received any private benefit or any other remuneration from the Charity. The Trustees have had regard to the Charity Commissions’ guidance on public benefit. Page 3 **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Achievements and performance** The year ended 31 August 2022 saw the nursery keeping its own books and records for the 19th year running. The bookkeeping services are the responsibility of the nursery Managers. The most recent Ofsted inspection was in June 2018 when the Nursery was assessed as ‘Good’. Since then the Nursery management and staff have continued to develop resources and best practice within the Nursery. This has been recognised by Oxfordshire County Council who now use the Nursery as an example of best practice for other providers. It goes without saying that the Trustees are delighted with the continued progress of the Nursery which we recognise is down to the hard work and diligent efforts of the management and all of the staff. Whilst it would be a great achievement for the Nursery to be assessed as Outstanding it is our aim to ensure that ‘Good’ is maintained and that the Nursery continues to aim for best practice and a safe and caring environment for the children. We were thrilled to be able to hold our annual Christmas concert for our preschool children. Due to COVID-19 restrictions, this was held outside the nursery however we hope to be able to include this in our curriculum for December 2022 for all age groups in St. Alban’s Church, Watchfield. The Lending Library and our ‘activity at home’ bags reopened this year. We have continued to grow and develop the library with parents encouraged as part of the ‘Parents in Partnership’ ethos to ensure that children take the opportunity to borrow the books in the library. We have also reopened the lending library for parents. Thanks to the generosity of parents and others who have taken part in the various fundraising activities we have continued to develop the outdoor play and activity areas and also purchased more outside play equipment. We continue to display the Recognition Board which provides the opportunity for parents and staff to thank and recognise staff who have gone over and beyond what might be expected. All parents are encouraged to add their comments to this Board when passing through the Nursery. ## **Financial review** A statement of the financial position and details of income and expenditure is provided to each Trustee meeting where it is reviewed by trustees and management. Reserves have been built up over previous financial years to cover redundancy and closure costs should the need ever arise to wind up the nursery. We also have £85,000 on deposit with the Charity Bank which not only diversifies our bank accounts but also pays a small amount of interest. Fees are reviewed annually and are fixed at a level that is expected to raise sufficient revenue to cover all necessary expenditure whilst remaining competitive within the local area. The nursery receives Nursery Education Funding for qualifying 2, 3- and 4-year olds, however, as stated earlier the level of funding received, which is set by local government, is significantly below the nursery’s hourly rate. This is a matter which is beyond the nursery’s control. The nursery is fully compliant with both the National Living Wage and Pension Auto-Enrolment. The significant increase in the National Living Wage has put an additional strain on the Nursery but we are delighted to report that a consistency in child numbers throughout the year at the Nursery, and prudent management of expenses has enabled the Nursery to once again make an operating surplus this year which the Trustees would like to see invested back into the nursery. Although the encroachment status of the nursery continues to be reviewed annually, the Trustees remain grateful for the continued support of the Defence Academy with the provision of its building and main utilities. The Defence Academy has also been responsive to our maintenance needs and as a result we have well maintained buildings and facilities. Page 4 **THE COTTAGE NURSERY (A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** The nursery is run as a self-funding body. ## **Reserves policy** A statement of the financial position and details of income and expenditure is provided to each Trustee meeting where it is reviewed by trustees and management. Reserves have been built up over previous financial years to cover redundancy and closure costs should the need ever arise to wind up the nursery. ## **Structure, governance and management** ## **Constitution** The nursery is registered as a charitable company limited by guarantee (number 6535999). The nursery is constituted under its Memorandum and Articles of Association dated 28th April 2008 (amendments made January 2011 and November 2018) and is a registered charity (number 1133631). ## **Organisational structure** The nursery is run jointly by two Managers, a Deputy Manager, a Supervisor and four Room Supervisors. All bookkeeping functions continue to be conducted in house however the payroll continues to be prepared by an outside Payroll Agency and a firm of Accountants is responsible for preparing the year end accounts. Health & Safety is looked after jointly by the two Managers and the Senior Room Supervisor, all fire related checks and PAT testing are carried out by Serco. There are four Safeguarding Officers, but all staff are trained on Safeguarding and Prevent. The Managers report to the Trustees who meet regularly; minutes of these meetings are kept and are available to all staff and parents as they act as a record of the nursery’s official business. Nursery staff are represented at Trustee meetings by the nursery Managers, this ensures a good and open flow of communication. Declarations of Interest are recorded when applicable. ## **Training & induction of Trustees and staff** The responsibilities of the Trustees are documented in the constitution. Trustees are expected to serve a minimum of two years to a maximum of six years in post and are generally appointed from within the local community. Their appointment is ratified at the annual AGM. Trustees are expected to spend time during the working day at the nursery to familiarise themselves with the day to day operation and to meet the members of staff, however, this has been curtailed during the recent crisis. Copies of the policies and procedures are made available to them. All Trustees are subject to the same level of checks, including DBS checks, as members of staff. The majority of staff are qualified to a minimum of NVQ level 3 in childcare (or equivalent). However, staff are chosen not just for their qualifications but also for their individual caring skills. All staff are actively encouraged to continue to obtain new qualifications and further their learning. Safeguarding and first aid training are mandatory. Page 5 **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Structure, governance and management (continued)** ## **Risk Management** Regular risk assessments are carried out by the Managers, daily checks are done by the staff in all areas of the nursery. The Trustees have assessed the major risks to which the nursery is exposed, in particular those related to the operations and finances, and are satisfied that systems and procedures are in place to mitigate exposure to major risks. There are five lead Safeguarding Officers. Safeguarding and Prevent training is mandatory to level one for all staff. All staff must have a current DBS which is renewed every three years, they must also declare their suitability each term, this extends to ‘suitability by association’. All outside agencies working regularly within the nursery are required to have a current DBS and must declare their on-going suitability. They must also have suitable insurance cover. Both Managers and the Chair of the Trustees have completed ‘Safer Recruitment’ training and SR practice is followed with every new recruitment of both staff and Trustees. ## **Plans for the future** The management structure has worked well during the year and there are no plans to alter this. In 2022-23 the plan is to consolidate the progress that has been made during the past few years and to continue to develop the outdoor facilities wherever possible. Building work, which began on the nursery building in July 2022, will continue. During the year we will refresh some of the décor both internally and externally and will also enhance the facilities and equipment in the rooms. The kitchen will also get some attention to ensure it continues to be safely equipped to deliver the number of meals that are now required on a daily basis. We will continue to invest in Training and development of staff so that they are not only fully equipped to meet statutory requirements but also in aspects of child development and care that extend the reach of the Nursery. Page 6 THE COThAGE NURSERY IA company Ilmtted by guawanto01 TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 st•t?m•ntof TnWt¢￿. mpon81bllttle8 Th8 Tw8ts88 (wh) are also the dirECt(¥5 of the Company for lh8 PU￿ of company Lwl are re¥￿Dn￿bIe for prepariry the Trustees. report and Ihe financial statements in a¢¢ordance with applicabk law and Unite KIr￿th Acctyjnting Standards (United Kingdom GeneraltyAcc8Pted Accounting Practice). Company requi￿5 the Trustees to prepare frnancial $tsternents lor each fiTraThcial. Under company law. lh8 Trustees must not approve the financK31 statements Ijnless Ihey are satisfi8d that Ihey gN8 a tn￿ and fair Vie of the state of affairs of the C(mpany and of Tis incoming reSour￿S and application tsf ￿$¢Ur￿5, induding ts income and expenditur8, for that per￿. In preparing these financial statements, Ihe Trust888 are required to.. select Suitsble actsunting ￿Tr￿les and then apply Ihem ttJn$i$tenly,' observe the methods and principles of the Charitie5 SORP IFRS 1021,. rnake judgement5 and accounbng eslirnales that are reasonab18 and prudent.. stste whether applicable UK Accounting Stsrthrds IFRS 1021 have been fdkyAEd, Sufy"￿t to any material departures disclosed and expla1ned in the financial statement5. prepare the finanoal statements on the ￿)Ing c¢)nom b￿515 unle55 rt is inappropriat8 to presume tt)al the Ccrynywill conb.nue in bu%ness Th8 Trustees a￿ respOr￿1b￿8 for W"ng 8dwuate accounting records that are suffick8nt to shuw and e*ain the Companls tsansactions and disd¢>se with reasonab￿ ac(AJracy at any ￿rne the finanfjal ol the Cornpany and eTrab￿ them to ensure that the finanual statements cornply the CcrnpanE5 Act 2006. They are akn responsib* for safeguarding the assets of the Company and hen￿ for takirtg reasonable steps for the prevention and detection of fraud an¢J other irregulantie> Approved by othr of the membern of th8 L*x¥d ofTrustees and ￿ned on theIr￿aIrty. Elta Biggs Trustee Trats. 4 January 2023 Page 7 **THE COTTAGE NURSERY (A company limited by guarantee)** ## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2022** ## **Independent Examiner's Report to the Trustees of The Cottage Nursery ('the Company')** I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 August 2022. ## **Responsibilities and Basis of Report** As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the Company 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 Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent Examiner's Statement** Since the Company'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 The institute of Chartered Accountants in England and Wales, 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: 1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts 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 accounts 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 accounts to be reached. Page 8 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report. Signed: Dated: 9 March 2023 Alexander Peal BSc(Hons) FCA DChA **James Cowper Kreston Audit** Chartered Accountants Reading Bridge House George Street Reading Berkshire RG1 8LS Page 9 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022** |**Note**
**Income from:**
Donations and legacies
2
Charitable activities
3
Other trading activities
Investments
5
Other income
6
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
7
**Total expenditure**
**Net income**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
**-**
**472,822**
**555**
**618**
**92**
**474,087**
**-**
**421,762**
**421,762**
**52,325**
**52,325**
**326,156**
**378,481**|**Total**
**funds**
**2022**
**£**
**-**
**472,822**
**555**
**618**
**92**
**474,087**
**-**
**421,762**
**421,762**
**52,325**
**52,325**
**326,156**
**378,481**|Total
funds
2021
£
9,751
445,340
839
1,092
949| |---|---|---|---| ||||457,971| ||||102
397,739| ||||397,841| ||||60,130| ||||60,130| ||||266,026| ||||326,156| The notes on pages 13 to 24 form part of these financial statements. Page 10 THE co￿AGE NUASEAY IA CoM￿nY Ilmit•d by guardntse) REGISTERED NUMBER: 6535999 AS AT 31 AUGUST2012 Flx¢d ￿*** Tangib* as9818 12 15.302 232 13 Cash at bank ond in h•nd 3W146 320,432 Cr•ditorn. *nwnlsfvlllry r 14 110.g•n 19,e881 N•tcurr•Tht•M• 355.1 310.784 378M1 326.159 Ch•rfty fub Unr•ithctsd fiJnd¥ 18 378A8t 328.1S8 T•i*l fvrtd* 320.156 476 ofCrynw* pa 2c￿. th• umwnJè8 Moim Ell• Blgy Tru8t•• Oate. 4 January 2023 Pw•11 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022** |**Note**
**Cash flows from operating activities**
Net cash used in operating activities
18
**Cash flows from investing activities**
Interest
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
19
The notes on pages 13 to 24 form part of these financial statements|**2022**
**£**
**57,756**
**618**
**(12,660)**
**(12,042)**
**45,714**
**320,432**
**366,146**|2021
£
66,143
1,092
(8,905)
**(7,813)**
**58,330**
262,102
320,432| |---|---|---| Page 12 **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. Accounting policies** ## **1.1 Basis of preparation of financial statements** The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Cottage Nursery 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. ## **1.2 Company status** The charity is a private company limited by guarantee and incorporated in England and Wales. The address of its registered office and principal place of business is Alexander Hall, Watchfield, Swindon, Wiltshire, SN6 8TS. The members of the company are the parents who elect the Trustees named on page 1, to run the company on their behalf. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. ## **1.3 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. ## **1.4 Income** All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. The Nursery receives a grant each term from Oxfordshire County Council which pays for some children to receive up to 15 or 30 hours of care at the Nursery each week. The grant is applied for on a termly basis and is recognised in the financial statements when the Nursery becomes entitled to receive the income. ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Page 13 **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. Accounting policies (continued)** ## **1.5 Expenditure (continued)** Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements. ## **1.6 Donated services** The Defence Academy of the United Kingdom bears certain costs on behalf of the Cottage Nursery. These costs are not separate and identifiable from those of the Academy itself and have therefore not been recognised in the accounts as donated services but are disclosed here as such. Fundraising costs included in costs of activities to generate funds are included in donated services. ## **1.7 Value added tax** The Nursery is currently not registered for VAT therefore all VAT is written off to the Statement of Financial Activities as incurred. ## **1.8 Tangible fixed assets and depreciation** Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives. Depreciation is provided on the following bases: - Fixtures and fittings 20% Straight Line - Computer equipment 20% Straight Line - Playground equipment 20% Straight Line ## **1.9 Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **1.10 Cash at bank and in hand** Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **1.11 Liabilities** Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it as received as advanced payments for the goods or services it must provide. Page 14 **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. Accounting policies (continued)** ## **1.12 Pensions** The Comapny operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds. ## **1.13 Financial instrument** The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. ## **1.14 Critical accounting estimates and areas of judgement** Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. ## **Critical accounting estimates and assumptions:** The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial tear are discussed below. All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. ## **Tangible fixed assets:** Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and the projected disposal values. Page 15 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **2. Income from donations and legacies** |Donations
Government grants
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
-
-
-
9,751|**Total**
**funds**
**2022**
**£**
**-**
**-**
**-**
9,751|Total
funds
2021
£
50
9,701| |---|---|---|---| ||||9,751| ||||| ## **3. Income from charitable activities** |Fees and deposits
Grants
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
365,515
107,307
472,822
445,340|**Total**
**funds**
**2022**
**£**
**365,515**
**107,307**
**472,822**
445,340|Total
funds
2021
£
349,414
95,926| |---|---|---|---| ||||445,340| ||||| ## **4. Fundraising income** ||**Unrestricted**|**Total**|Total| |---|---|---|---| ||**funds**|**funds**|funds| ||**2022**|**2022**|2021| ||**£**|**£**|£| |Fundraising events|-|**-**|839| Page 16 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **5. Investment income** |**Unrestricted**
**funds**
**2022**
**£**
Bank interest received
618
Total 2021
1,092|**Total**
**funds**
**2022**
**£**
**618**
1,092|Total
funds
2021
£
1,092| |---|---|---| |||| ## **6. Other incoming resources** |Other income
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
92
949|**Total**
**funds**
**2022**
**£**
**92**
949|Total
funds
2021
£
949| |---|---|---|---| ||||| ## **7. Analysis of expenditure on charitable activities Summary by fund type** |Nursery costs
Governance costs
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
418,361
3,401
421,762
397,739|**Total**
**2022**
**£**
**418,361**
**3,401**
**421,762**
397,739|Total
2021
£
395,075
2,664| |---|---|---|---| ||||397,739| ||||| Page 17 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **8. Analysis of expenditure by activities** |Nursery costs
Governance costs
Total 2021|**Activities**
**undertaken**
**directly**
**2022**
**£**
418,361
-
418,361
395,075|**Support**
**costs**
**2022**
**£**
-
3,401
3,401
2,664|**Total**
**funds**
**2022**
**£**
**418,361**
**3,401**
**421,762**
397,739|Total
funds
2021
£
395,075
2,664| |---|---|---|---|---| |||||397,739| |||||| ## **Analysis of direct costs** |Staff costs
Depreciation
Staff training and recruitment
Nursery consumables
Insurance
Premises expenses
Printing, postage, stationery and advertising
Computer expenses
Clothing costs
Subscriptions
Sundry expenses
Bank charges
Payroll charges
Consultancy fees|**Total**
**funds**
**2022**
**£**
**367,333**
**4,760**
**4,677**
**24,677**
**2,405**
**2,748**
**514**
**605**
**532**
**1,272**
**5,784**
**226**
**1,441**
**1,387**
**418,361**|Total
funds
2021
£
346,546
5,053
3,537
22,365
2,072
5,175
505
320
498
937
4,516
213
1,903
1,435| |---|---|---| |||395,075| Page 18 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **8. Analysis of expenditure by activities (continued)** ## **Analysis of support costs** |Governance costs
**9.**
**Independent examiner's remuneration**
Fees payable to the Company's independent examiner for the independent
examination of the Company's annual accounts
**10.**
**Staff costs**
Wages and salaries
Social security costs
Other pension costs|**Total**
**funds**
**2022**
**£**
**3,401**
**2022**
**£**
**3,401**
**2022**
**£**
**341,559**
**16,728**
**9,046**
**367,333**|Total
funds
2021
£
2,664| |---|---|---| |||2021
£
2,664| |||2021
£
320,163
17,983
8,400| |||| |||346,546| The average number of persons employed by the Company during the year was as follows: |**2022**|2021| |---|---| |**No.**|No.| |**22**|19| No employee received remuneration amounting to more than £60,000 in either year. During the year the remuneration and benefits received by key management personnel totalled £82,533 (2020: £95,645). Page 19 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **11. Trustees' remuneration and expenses** During the year, no Trustees received any remuneration or other benefits (2021 - £NIL). During the year ended 31 August 2022, no Trustee expenses have been incurred (2021 - £NIL). ## **12. Tangible fixed assets** |**Cost or valuation**
At 1 September 2021
Additions
At 31 August 2022
**Depreciation**
At 1 September 2021
Charge for the year
At 31 August 2022
**Net book value**
At 31 August 2022
At 31 August 2021
**Debtors**
**Due within one year**
Other debtors|**Fixtures and**
**fittings**
**£**
**10,366**
**683**
**11,049**
**10,366**
**80**
**10,446**
**603**
-|**Computer**
**equipment**
**£**
**1,836**
**220**
**2,056**
**1,667**
**98**
**1,765**
**291**
169|**Playground**
**equipment**
**£**
**59,048**
**11,757**
**70,805**
**43,825**
**4,582**
**48,407**
**22,398**
15,223
**2022**
**£**
**40**|**Total**
**£**
**71,250**
**12,660**
**83,910**
**55,858**
**4,760**
**60,618**
**23,292**
15,392
2021
£
-| |---|---|---|---|---| ## **13. Debtors** Page 20 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **14. Creditors: Amounts falling due within one year** |Trade creditors
Other taxation and social security
Accruals
**15.**
**Statement of funds**
**Statement of funds - current year**
**Unrestricted funds**
General Funds - all funds
**Statement of funds - prior year**
**Unrestricted funds**
Reserves and general funds|**Balance at 1**
**September**
**2021**
**£**
**326,156**
Balance at
1 September
2020
£
266,026|**Income**
**£**
**474,087**
Income
£
457,971|**2022**
**£**
**486**
**7,877**
**2,634**
**10,997**
**Expenditure**
**£**
**(421,762)**
Expenditure
£
(397,841)||2021
£
342
6,819
2,507| |---|---|---|---|---|---| ||||||| ||||||9,668| ||||||**Balance at**
**31 August**
**2022**
**£**
**378,481**
Balance at
31 August
2021
£
326,156| ||||||| Page 21 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **16. Summary of funds** ## **Summary of funds - current year** |General funds
**Summary of funds - prior year**
General funds|**Balance at 1**
**September**
**2021**
**£**
**326,156**
Balance at
1 September
2020
£
266,026|**Income**
**£**
**474,087**
Income
£
457,971|**Expenditure**
**£**
**(421,762)**
Expenditure
£
(397,841)|**Balance at**
**31 August**
**2022**
**£**
**378,481**| |---|---|---|---|---| |||||Balance at
31 August
2021
£
326,156| ## **17. Analysis of net assets between funds Analysis of net assets between funds - current year** |**Unrestricted**
**funds**
**2022**
**£**
Tangible fixed assets
23,292
Current assets
366,186
Creditors due within one year
(10,997)
**Total**
378,481
**Analysis of net assets between funds - prior year**
Unrestricted
funds
2021
£
Tangible fixed assets
15,392
Current assets
320,432
Creditors due within one year
(9,668)
**Total**
326,156|**Total**
**funds**
**2022**
**£**
**23,292**
**366,186**
**(10,997)**
**378,481**
Total
funds
2021
£
15,392
320,432
(9,668)
326,156| |---|---| Page 22 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **18. Reconciliation of net movement in funds to net cash flow from operating activities** |Net income for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Interest
Decrease/(increase) in debtors
Increase in creditors
**Net cash provided by operating activities**
**19.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**20.**
**Analysis of changes in net debt**
**At 1**
**September**
**2021**
**£**
Cash at bank and in hand
**320,432**
**320,432**||**2022**
2021
**£**
£
**52,325**
60,130
**4,760**
5,053
**(618)**
(1,092)
**(40)**
-
**1,329**
2,052
**57,756**
66,143
**2022**
2021
**£**
£
**366,146**
320,432
**366,146**
320,432
**Cash flows**
**At 31**
**August 2022**
**£**
**£**
**45,714**
**366,146**
**45,714**
**366,146**| |---|---|---| |||| ## **21. Related party transactions** There were no related party transactions in the year or the prior year. ## **22. Controlling party** The ultimate controlling party is the charity's Trustees as detailed on page 1 of the financial statements. Page 23 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **23. Pension commitments** The charity operates a Stakeholder Pension Scheme for its employees. This is a money purchase or defined contribution scheme. The employer's contribution is 3% of the gross pay, and for the year totalled £9,046 (2021: £8,400). At the balance sheet date £1,679 (2021: £1,709) of contributions (employees and employers) were outstanding. Page 24 **Registered number: 6535999 Charity number: 1133631** ## **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **UNAUDITED** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 AUGUST 2022** ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **CONTENTS** ||Page| |---|---| |**Reference and administrative details of the Company, its Trustees and advisers**|1| |**Trustees' report**|2 - 7| |**Independent examiner's report**|8 - 9| |**Statement of financial activities**|10| |**Balance sheet**|11| |**Statement of cash flows**|12| |**Notes to the financial statements**|13 - 24| ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022** ## **Trustees** Timothy Miller (resigned 15 November 2021) Ella Biggs Ceri Nicholson (resigned 26 March 2022) David Russell Aideen Harold Hayley Ward (resigned 15 November 2021) Clare Thomas ## **Company registered number** 6535999 ## **Charity registered number** 1133631 ## **Registered office** Alexander Hall Watchfield Swindon Wiltshire SN6 8TS ## **Senior Management** Clare Olden, Joint Manager Trudi Krzywiec, Joint Manager ## **Accountants** James Cowper Kreston Audit Chartered Accountants Reading Bridge House George Street Reading Berkshire RG1 8LS Page 1 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022** The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of The Cottage Nursery (the company) for the year ended 31 August 2022. The Trustees confirm that the annual report and the financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” issued in January 2019. Since the company qualifies as ‘small’ under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 is not required. ## **Objectives and activities** The Cottage Nursery offers day care, sessional care and pre-school education to children aged from 3 months to 5 years. This year over 60% of the nursery’s membership were families working or studying at the Defence Academy, a number of whom were international families. The remainder were children from the local communities of Watchfield and Shrivenham. The aim of the nursery is to enhance the development and education of the children in its care by providing the best childcare available to the local community with a safe, secure and stimulating environment in which the children are encouraged to reach their full potential and where staff feel valued and engaged. The nursery follows the Early Years Foundation Stage (EYFS) with its planning and children take part in activities that are both age and stage appropriate. The Nursery keeps chickens (that provide a source of fresh eggs as well as having an educational benefit), and maintain planters that the children help to look after. There are regular walks into the locality of the Nursery which have provided an opportunity for children to see and learn more about nature. During the summer term, we offer a sports club facilitated by Premier Education for our Lions Room. All children are treated equally, and British Values are embedded in the way the nursery runs, with all staff undertaking Prevent Duty training. Page 2 **THE COTTAGE NURSERY (A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Objectives and activities (continued)** ## **Covid-19** The Covid-19 pandemic continued to have an impact on the Nursery during the reporting period. Due to staff shortages as a result of the pandemic the nursery had to close one of the rooms for 1 day and over a period of three days, we were only able to offer places across the nursery for funded children or for working parents. Many of the changes that were made in the nursery remain in place. This includes the way the rooms were configured, the drop-off and pick-up arrangements, the way in which food is served and the way in which staff are utilised. The nursery continues to take on board the advice and processes, mandated and advisory from Oxfordshire County Council and Public Health England. Once again it is important to recognise that the Management and Staff have been quite superb in their response to the crisis throughout the year. Their professionalism, dedication, care and attention to detail has meant that the impact on children, their carers and the Trust has been minimised. ## **Public benefit** The Cottage Nursery provides care for children from both the local community and the military families attending the Defence Academy. In so doing it welcomes children from all backgrounds and nationalities and supports children and families for whom, in some cases, their first language is not English. The nursery supports any child with special education needs and has strong links with outside agencies provided by the local council. It also liaises with the local schools to aid the transition of children into the school system. The nursery actively promotes a Healthy Eating Policy providing healthy snacks and a ‘home-cooked’ lunch. Help and support is offered to parents to develop their children’s eating habits. The nursery will assist any parent who finds it hard to pay their nursery bill with a personalised payment plan, and will also offer support to vulnerable families. The nursery offers 2-year old funded places and also offers places to all children eligible for the 3 and 4-year-old funding, both the statutory 15 hours and the extended 30 hours where parents meet the criteria. It should be noted that the funding received for such places falls well short of the cost of actually providing those places. No Trustee received any private benefit or any other remuneration from the Charity. The Trustees have had regard to the Charity Commissions’ guidance on public benefit. Page 3 **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Achievements and performance** The year ended 31 August 2022 saw the nursery keeping its own books and records for the 19th year running. The bookkeeping services are the responsibility of the nursery Managers. The most recent Ofsted inspection was in June 2018 when the Nursery was assessed as ‘Good’. Since then the Nursery management and staff have continued to develop resources and best practice within the Nursery. This has been recognised by Oxfordshire County Council who now use the Nursery as an example of best practice for other providers. It goes without saying that the Trustees are delighted with the continued progress of the Nursery which we recognise is down to the hard work and diligent efforts of the management and all of the staff. Whilst it would be a great achievement for the Nursery to be assessed as Outstanding it is our aim to ensure that ‘Good’ is maintained and that the Nursery continues to aim for best practice and a safe and caring environment for the children. We were thrilled to be able to hold our annual Christmas concert for our preschool children. Due to COVID-19 restrictions, this was held outside the nursery however we hope to be able to include this in our curriculum for December 2022 for all age groups in St. Alban’s Church, Watchfield. The Lending Library and our ‘activity at home’ bags reopened this year. We have continued to grow and develop the library with parents encouraged as part of the ‘Parents in Partnership’ ethos to ensure that children take the opportunity to borrow the books in the library. We have also reopened the lending library for parents. Thanks to the generosity of parents and others who have taken part in the various fundraising activities we have continued to develop the outdoor play and activity areas and also purchased more outside play equipment. We continue to display the Recognition Board which provides the opportunity for parents and staff to thank and recognise staff who have gone over and beyond what might be expected. All parents are encouraged to add their comments to this Board when passing through the Nursery. ## **Financial review** A statement of the financial position and details of income and expenditure is provided to each Trustee meeting where it is reviewed by trustees and management. Reserves have been built up over previous financial years to cover redundancy and closure costs should the need ever arise to wind up the nursery. We also have £85,000 on deposit with the Charity Bank which not only diversifies our bank accounts but also pays a small amount of interest. Fees are reviewed annually and are fixed at a level that is expected to raise sufficient revenue to cover all necessary expenditure whilst remaining competitive within the local area. The nursery receives Nursery Education Funding for qualifying 2, 3- and 4-year olds, however, as stated earlier the level of funding received, which is set by local government, is significantly below the nursery’s hourly rate. This is a matter which is beyond the nursery’s control. The nursery is fully compliant with both the National Living Wage and Pension Auto-Enrolment. The significant increase in the National Living Wage has put an additional strain on the Nursery but we are delighted to report that a consistency in child numbers throughout the year at the Nursery, and prudent management of expenses has enabled the Nursery to once again make an operating surplus this year which the Trustees would like to see invested back into the nursery. Although the encroachment status of the nursery continues to be reviewed annually, the Trustees remain grateful for the continued support of the Defence Academy with the provision of its building and main utilities. The Defence Academy has also been responsive to our maintenance needs and as a result we have well maintained buildings and facilities. Page 4 **THE COTTAGE NURSERY (A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** The nursery is run as a self-funding body. ## **Reserves policy** A statement of the financial position and details of income and expenditure is provided to each Trustee meeting where it is reviewed by trustees and management. Reserves have been built up over previous financial years to cover redundancy and closure costs should the need ever arise to wind up the nursery. ## **Structure, governance and management** ## **Constitution** The nursery is registered as a charitable company limited by guarantee (number 6535999). The nursery is constituted under its Memorandum and Articles of Association dated 28th April 2008 (amendments made January 2011 and November 2018) and is a registered charity (number 1133631). ## **Organisational structure** The nursery is run jointly by two Managers, a Deputy Manager, a Supervisor and four Room Supervisors. All bookkeeping functions continue to be conducted in house however the payroll continues to be prepared by an outside Payroll Agency and a firm of Accountants is responsible for preparing the year end accounts. Health & Safety is looked after jointly by the two Managers and the Senior Room Supervisor, all fire related checks and PAT testing are carried out by Serco. There are four Safeguarding Officers, but all staff are trained on Safeguarding and Prevent. The Managers report to the Trustees who meet regularly; minutes of these meetings are kept and are available to all staff and parents as they act as a record of the nursery’s official business. Nursery staff are represented at Trustee meetings by the nursery Managers, this ensures a good and open flow of communication. Declarations of Interest are recorded when applicable. ## **Training & induction of Trustees and staff** The responsibilities of the Trustees are documented in the constitution. Trustees are expected to serve a minimum of two years to a maximum of six years in post and are generally appointed from within the local community. Their appointment is ratified at the annual AGM. Trustees are expected to spend time during the working day at the nursery to familiarise themselves with the day to day operation and to meet the members of staff, however, this has been curtailed during the recent crisis. Copies of the policies and procedures are made available to them. All Trustees are subject to the same level of checks, including DBS checks, as members of staff. The majority of staff are qualified to a minimum of NVQ level 3 in childcare (or equivalent). However, staff are chosen not just for their qualifications but also for their individual caring skills. All staff are actively encouraged to continue to obtain new qualifications and further their learning. Safeguarding and first aid training are mandatory. Page 5 **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** ## **Structure, governance and management (continued)** ## **Risk Management** Regular risk assessments are carried out by the Managers, daily checks are done by the staff in all areas of the nursery. The Trustees have assessed the major risks to which the nursery is exposed, in particular those related to the operations and finances, and are satisfied that systems and procedures are in place to mitigate exposure to major risks. There are five lead Safeguarding Officers. Safeguarding and Prevent training is mandatory to level one for all staff. All staff must have a current DBS which is renewed every three years, they must also declare their suitability each term, this extends to ‘suitability by association’. All outside agencies working regularly within the nursery are required to have a current DBS and must declare their on-going suitability. They must also have suitable insurance cover. Both Managers and the Chair of the Trustees have completed ‘Safer Recruitment’ training and SR practice is followed with every new recruitment of both staff and Trustees. ## **Plans for the future** The management structure has worked well during the year and there are no plans to alter this. In 2022-23 the plan is to consolidate the progress that has been made during the past few years and to continue to develop the outdoor facilities wherever possible. Building work, which began on the nursery building in July 2022, will continue. During the year we will refresh some of the décor both internally and externally and will also enhance the facilities and equipment in the rooms. The kitchen will also get some attention to ensure it continues to be safely equipped to deliver the number of meals that are now required on a daily basis. We will continue to invest in Training and development of staff so that they are not only fully equipped to meet statutory requirements but also in aspects of child development and care that extend the reach of the Nursery. Page 6 THE COThAGE NURSERY IA company Ilmtted by guawanto01 TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 st•t?m•ntof TnWt¢￿. mpon81bllttle8 Th8 Tw8ts88 (wh) are also the dirECt(¥5 of the Company for lh8 PU￿ of company Lwl are re¥￿Dn￿bIe for prepariry the Trustees. report and Ihe financial statements in a¢¢ordance with applicabk law and Unite KIr￿th Acctyjnting Standards (United Kingdom GeneraltyAcc8Pted Accounting Practice). Company requi￿5 the Trustees to prepare frnancial $tsternents lor each fiTraThcial. Under company law. lh8 Trustees must not approve the financK31 statements Ijnless Ihey are satisfi8d that Ihey gN8 a tn￿ and fair Vie of the state of affairs of the C(mpany and of Tis incoming reSour￿S and application tsf ￿$¢Ur￿5, induding ts income and expenditur8, for that per￿. In preparing these financial statements, Ihe Trust888 are required to.. select Suitsble actsunting ￿Tr￿les and then apply Ihem ttJn$i$tenly,' observe the methods and principles of the Charitie5 SORP IFRS 1021,. rnake judgement5 and accounbng eslirnales that are reasonab18 and prudent.. stste whether applicable UK Accounting Stsrthrds IFRS 1021 have been fdkyAEd, Sufy"￿t to any material departures disclosed and expla1ned in the financial statement5. prepare the finanoal statements on the ￿)Ing c¢)nom b￿515 unle55 rt is inappropriat8 to presume tt)al the Ccrynywill conb.nue in bu%ness Th8 Trustees a￿ respOr￿1b￿8 for W"ng 8dwuate accounting records that are suffick8nt to shuw and e*ain the Companls tsansactions and disd¢>se with reasonab￿ ac(AJracy at any ￿rne the finanfjal ol the Cornpany and eTrab￿ them to ensure that the finanual statements cornply the CcrnpanE5 Act 2006. They are akn responsib* for safeguarding the assets of the Company and hen￿ for takirtg reasonable steps for the prevention and detection of fraud an¢J other irregulantie> Approved by othr of the membern of th8 L*x¥d ofTrustees and ￿ned on theIr￿aIrty. Elta Biggs Trustee Trats. 4 January 2023 Page 7 **THE COTTAGE NURSERY (A company limited by guarantee)** ## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2022** ## **Independent Examiner's Report to the Trustees of The Cottage Nursery ('the Company')** I report to the charity Trustees on my examination of the accounts of the Company for the year ended 31 August 2022. ## **Responsibilities and Basis of Report** As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the Company 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 Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent Examiner's Statement** Since the Company'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 The institute of Chartered Accountants in England and Wales, 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: 1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts 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 accounts 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 accounts to be reached. Page 8 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022** This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report. Signed: Dated: 9 March 2023 Alexander Peal BSc(Hons) FCA DChA **James Cowper Kreston Audit** Chartered Accountants Reading Bridge House George Street Reading Berkshire RG1 8LS Page 9 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022** |**Note**
**Income from:**
Donations and legacies
2
Charitable activities
3
Other trading activities
Investments
5
Other income
6
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
7
**Total expenditure**
**Net income**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
**-**
**472,822**
**555**
**618**
**92**
**474,087**
**-**
**421,762**
**421,762**
**52,325**
**52,325**
**326,156**
**378,481**|**Total**
**funds**
**2022**
**£**
**-**
**472,822**
**555**
**618**
**92**
**474,087**
**-**
**421,762**
**421,762**
**52,325**
**52,325**
**326,156**
**378,481**|Total
funds
2021
£
9,751
445,340
839
1,092
949| |---|---|---|---| ||||457,971| ||||102
397,739| ||||397,841| ||||60,130| ||||60,130| ||||266,026| ||||326,156| The notes on pages 13 to 24 form part of these financial statements. Page 10 THE co￿AGE NUASEAY IA CoM￿nY Ilmit•d by guardntse) REGISTERED NUMBER: 6535999 AS AT 31 AUGUST2012 Flx¢d ￿*** Tangib* as9818 12 15.302 232 13 Cash at bank ond in h•nd 3W146 320,432 Cr•ditorn. *nwnlsfvlllry r 14 110.g•n 19,e881 N•tcurr•Tht•M• 355.1 310.784 378M1 326.159 Ch•rfty fub Unr•ithctsd fiJnd¥ 18 378A8t 328.1S8 T•i*l fvrtd* 320.156 476 ofCrynw* pa 2c￿. th• umwnJè8 Moim Ell• Blgy Tru8t•• Oate. 4 January 2023 Pw•11 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022** |**Note**
**Cash flows from operating activities**
Net cash used in operating activities
18
**Cash flows from investing activities**
Interest
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
19
The notes on pages 13 to 24 form part of these financial statements|**2022**
**£**
**57,756**
**618**
**(12,660)**
**(12,042)**
**45,714**
**320,432**
**366,146**|2021
£
66,143
1,092
(8,905)
**(7,813)**
**58,330**
262,102
320,432| |---|---|---| Page 12 **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. Accounting policies** ## **1.1 Basis of preparation of financial statements** The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Cottage Nursery 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. ## **1.2 Company status** The charity is a private company limited by guarantee and incorporated in England and Wales. The address of its registered office and principal place of business is Alexander Hall, Watchfield, Swindon, Wiltshire, SN6 8TS. The members of the company are the parents who elect the Trustees named on page 1, to run the company on their behalf. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. ## **1.3 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. ## **1.4 Income** All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. The Nursery receives a grant each term from Oxfordshire County Council which pays for some children to receive up to 15 or 30 hours of care at the Nursery each week. The grant is applied for on a termly basis and is recognised in the financial statements when the Nursery becomes entitled to receive the income. ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Page 13 **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. Accounting policies (continued)** ## **1.5 Expenditure (continued)** Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements. ## **1.6 Donated services** The Defence Academy of the United Kingdom bears certain costs on behalf of the Cottage Nursery. These costs are not separate and identifiable from those of the Academy itself and have therefore not been recognised in the accounts as donated services but are disclosed here as such. Fundraising costs included in costs of activities to generate funds are included in donated services. ## **1.7 Value added tax** The Nursery is currently not registered for VAT therefore all VAT is written off to the Statement of Financial Activities as incurred. ## **1.8 Tangible fixed assets and depreciation** Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives. Depreciation is provided on the following bases: - Fixtures and fittings 20% Straight Line - Computer equipment 20% Straight Line - Playground equipment 20% Straight Line ## **1.9 Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **1.10 Cash at bank and in hand** Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **1.11 Liabilities** Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it as received as advanced payments for the goods or services it must provide. Page 14 **THE COTTAGE NURSERY** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **1. Accounting policies (continued)** ## **1.12 Pensions** The Comapny operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds. ## **1.13 Financial instrument** The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. ## **1.14 Critical accounting estimates and areas of judgement** Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. ## **Critical accounting estimates and assumptions:** The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial tear are discussed below. All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. ## **Tangible fixed assets:** Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and the projected disposal values. Page 15 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **2. Income from donations and legacies** |Donations
Government grants
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
-
-
-
9,751|**Total**
**funds**
**2022**
**£**
**-**
**-**
**-**
9,751|Total
funds
2021
£
50
9,701| |---|---|---|---| ||||9,751| ||||| ## **3. Income from charitable activities** |Fees and deposits
Grants
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
365,515
107,307
472,822
445,340|**Total**
**funds**
**2022**
**£**
**365,515**
**107,307**
**472,822**
445,340|Total
funds
2021
£
349,414
95,926| |---|---|---|---| ||||445,340| ||||| ## **4. Fundraising income** ||**Unrestricted**|**Total**|Total| |---|---|---|---| ||**funds**|**funds**|funds| ||**2022**|**2022**|2021| ||**£**|**£**|£| |Fundraising events|-|**-**|839| Page 16 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **5. Investment income** |**Unrestricted**
**funds**
**2022**
**£**
Bank interest received
618
Total 2021
1,092|**Total**
**funds**
**2022**
**£**
**618**
1,092|Total
funds
2021
£
1,092| |---|---|---| |||| ## **6. Other incoming resources** |Other income
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
92
949|**Total**
**funds**
**2022**
**£**
**92**
949|Total
funds
2021
£
949| |---|---|---|---| ||||| ## **7. Analysis of expenditure on charitable activities Summary by fund type** |Nursery costs
Governance costs
Total 2021|**Unrestricted**
**funds**
**2022**
**£**
418,361
3,401
421,762
397,739|**Total**
**2022**
**£**
**418,361**
**3,401**
**421,762**
397,739|Total
2021
£
395,075
2,664| |---|---|---|---| ||||397,739| ||||| Page 17 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **8. Analysis of expenditure by activities** |Nursery costs
Governance costs
Total 2021|**Activities**
**undertaken**
**directly**
**2022**
**£**
418,361
-
418,361
395,075|**Support**
**costs**
**2022**
**£**
-
3,401
3,401
2,664|**Total**
**funds**
**2022**
**£**
**418,361**
**3,401**
**421,762**
397,739|Total
funds
2021
£
395,075
2,664| |---|---|---|---|---| |||||397,739| |||||| ## **Analysis of direct costs** |Staff costs
Depreciation
Staff training and recruitment
Nursery consumables
Insurance
Premises expenses
Printing, postage, stationery and advertising
Computer expenses
Clothing costs
Subscriptions
Sundry expenses
Bank charges
Payroll charges
Consultancy fees|**Total**
**funds**
**2022**
**£**
**367,333**
**4,760**
**4,677**
**24,677**
**2,405**
**2,748**
**514**
**605**
**532**
**1,272**
**5,784**
**226**
**1,441**
**1,387**
**418,361**|Total
funds
2021
£
346,546
5,053
3,537
22,365
2,072
5,175
505
320
498
937
4,516
213
1,903
1,435| |---|---|---| |||395,075| Page 18 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **8. Analysis of expenditure by activities (continued)** ## **Analysis of support costs** |Governance costs
**9.**
**Independent examiner's remuneration**
Fees payable to the Company's independent examiner for the independent
examination of the Company's annual accounts
**10.**
**Staff costs**
Wages and salaries
Social security costs
Other pension costs|**Total**
**funds**
**2022**
**£**
**3,401**
**2022**
**£**
**3,401**
**2022**
**£**
**341,559**
**16,728**
**9,046**
**367,333**|Total
funds
2021
£
2,664| |---|---|---| |||2021
£
2,664| |||2021
£
320,163
17,983
8,400| |||| |||346,546| The average number of persons employed by the Company during the year was as follows: |**2022**|2021| |---|---| |**No.**|No.| |**22**|19| No employee received remuneration amounting to more than £60,000 in either year. During the year the remuneration and benefits received by key management personnel totalled £82,533 (2020: £95,645). Page 19 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **11. Trustees' remuneration and expenses** During the year, no Trustees received any remuneration or other benefits (2021 - £NIL). During the year ended 31 August 2022, no Trustee expenses have been incurred (2021 - £NIL). ## **12. Tangible fixed assets** |**Cost or valuation**
At 1 September 2021
Additions
At 31 August 2022
**Depreciation**
At 1 September 2021
Charge for the year
At 31 August 2022
**Net book value**
At 31 August 2022
At 31 August 2021
**Debtors**
**Due within one year**
Other debtors|**Fixtures and**
**fittings**
**£**
**10,366**
**683**
**11,049**
**10,366**
**80**
**10,446**
**603**
-|**Computer**
**equipment**
**£**
**1,836**
**220**
**2,056**
**1,667**
**98**
**1,765**
**291**
169|**Playground**
**equipment**
**£**
**59,048**
**11,757**
**70,805**
**43,825**
**4,582**
**48,407**
**22,398**
15,223
**2022**
**£**
**40**|**Total**
**£**
**71,250**
**12,660**
**83,910**
**55,858**
**4,760**
**60,618**
**23,292**
15,392
2021
£
-| |---|---|---|---|---| ## **13. Debtors** Page 20 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **14. Creditors: Amounts falling due within one year** |Trade creditors
Other taxation and social security
Accruals
**15.**
**Statement of funds**
**Statement of funds - current year**
**Unrestricted funds**
General Funds - all funds
**Statement of funds - prior year**
**Unrestricted funds**
Reserves and general funds|**Balance at 1**
**September**
**2021**
**£**
**326,156**
Balance at
1 September
2020
£
266,026|**Income**
**£**
**474,087**
Income
£
457,971|**2022**
**£**
**486**
**7,877**
**2,634**
**10,997**
**Expenditure**
**£**
**(421,762)**
Expenditure
£
(397,841)||2021
£
342
6,819
2,507| |---|---|---|---|---|---| ||||||| ||||||9,668| ||||||**Balance at**
**31 August**
**2022**
**£**
**378,481**
Balance at
31 August
2021
£
326,156| ||||||| Page 21 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **16. Summary of funds** ## **Summary of funds - current year** |General funds
**Summary of funds - prior year**
General funds|**Balance at 1**
**September**
**2021**
**£**
**326,156**
Balance at
1 September
2020
£
266,026|**Income**
**£**
**474,087**
Income
£
457,971|**Expenditure**
**£**
**(421,762)**
Expenditure
£
(397,841)|**Balance at**
**31 August**
**2022**
**£**
**378,481**| |---|---|---|---|---| |||||Balance at
31 August
2021
£
326,156| ## **17. Analysis of net assets between funds Analysis of net assets between funds - current year** |**Unrestricted**
**funds**
**2022**
**£**
Tangible fixed assets
23,292
Current assets
366,186
Creditors due within one year
(10,997)
**Total**
378,481
**Analysis of net assets between funds - prior year**
Unrestricted
funds
2021
£
Tangible fixed assets
15,392
Current assets
320,432
Creditors due within one year
(9,668)
**Total**
326,156|**Total**
**funds**
**2022**
**£**
**23,292**
**366,186**
**(10,997)**
**378,481**
Total
funds
2021
£
15,392
320,432
(9,668)
326,156| |---|---| Page 22 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **18. Reconciliation of net movement in funds to net cash flow from operating activities** |Net income for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Interest
Decrease/(increase) in debtors
Increase in creditors
**Net cash provided by operating activities**
**19.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**20.**
**Analysis of changes in net debt**
**At 1**
**September**
**2021**
**£**
Cash at bank and in hand
**320,432**
**320,432**||**2022**
2021
**£**
£
**52,325**
60,130
**4,760**
5,053
**(618)**
(1,092)
**(40)**
-
**1,329**
2,052
**57,756**
66,143
**2022**
2021
**£**
£
**366,146**
320,432
**366,146**
320,432
**Cash flows**
**At 31**
**August 2022**
**£**
**£**
**45,714**
**366,146**
**45,714**
**366,146**| |---|---|---| |||| ## **21. Related party transactions** There were no related party transactions in the year or the prior year. ## **22. Controlling party** The ultimate controlling party is the charity's Trustees as detailed on page 1 of the financial statements. Page 23 ## **THE COTTAGE NURSERY** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022** ## **23. Pension commitments** The charity operates a Stakeholder Pension Scheme for its employees. This is a money purchase or defined contribution scheme. The employer's contribution is 3% of the gross pay, and for the year totalled £9,046 (2021: £8,400). At the balance sheet date £1,679 (2021: £1,709) of contributions (employees and employers) were outstanding. Page 24