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2020-08-31-accounts

The Crescent Pre-School Nursery Limited

A Charity and a Company Limited by Guarantee

Trustees’ Report and Financial Statements

For the year ended

31[st] August 2020

The Crescent Pre School Nursery Limited

Reference and administrative information

Trustees (also Directors) D Alston N Massey A Weston (Director only) Registered Charity Number 1136237 Company Registration Number 06747556 Registered Office Charter Court 2 Well House Barns Chester Road, Bretton Chester CH4 0DH Accountants Bradshaws Limited Charter Court Well House Barns Chester Road, Bretton Chester CH4 0DH Business Addresses Crescent Children’ Centre Pinewood Crescent Stoke-on-Trent ST3 6HZ Bankers: TSB 43 Market Street Longton ST3 1BN

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The Crescent Pre School Nursery Limited

Annual Report & Accounts 2019-20

This 12[th] Annual Report of the Trustees includes the financial statements for the year ended 31[st] August 2020. The report follows the order set out in the SORP. The review of achievements and performance section gives a rounded view of the Trust’s achievements, together with activities involving beneficiaries and community partners.

The statement of the Trustees’ accounting and reporting responsibilities is included under the section of Structure, Governance and Management, which has been included in accordance with APB Audit Standards, although this statement is not a requirement of the SORP.

Index Page
Trustees Report
Structure, governance and management 3-4
Objectives and activities 4-5
Achievements and performance 5-6
Financial review 6-7
Future Direction and Plans of Organisation 7-8
Independent Examiners’ Report to the Members of
The Crescent Pre-school Limited 9
Statement of Financial Activities 10
Balance Sheet 11-12
Notes to the Financial Statements 13-17

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The Crescent Pre School Nursery Limited

Trustees Report for the year ended 31[st] August 2020

The Trustees who are also directors of the charity for the purposes of the Companies Act, present their annual report and the financial statements for the year ended 31[st] August 2020.

The financial statements have been prepared to give a "true and fair" view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on the 16[th] July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1[st] April 2005 which has been withdrawn.

Structure, Governance and Management

Governing Document

The governing document of the Charity which is a company limited by guarantee is the Memorandum and Articles of Association of the company which was incorporated 12[th] November 2008.

Statement of trustees' responsibilities

The trustees (who are also directors of The Crescent Pre School Nursery Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual 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, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

Recruitment and Training of Trustees

The Charity’s elected trustees are appointed at the Annual Meeting of the Trust on the basis of nominations received from the Executive Committee to the Trust’s specification concerning eligibility, personal competence, specialist skills and local availability. New Trustees are inducted into the workings of the Charity including Policy and Operational Procedures.

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The Crescent Pre School Nursery Limited

Trustees Report for the year ended 31[st] August 2020 (Cont’d)

Organisational Management

The appointed and elected Trustees of the Charity are legally responsible for the overall management and control of the Trust. The members of the Board who meet on a minimum of four occasions annually carry out the work of implementing most of their policies. One additional meeting is held specifically to approve the budgets and finalise the Financial Accounts and Trustees report for approval by the annual meeting of the Board of Trustees. The Board works under the chairmanship of the Chair of the Trust. The Board has adopted the Code of Governance published by the National Governance Hub as a means of building governance capacity and skills.

The day to day running of the Trust is delegated to the Chairman. The Nursery Manager reports to the Board at their quarterly meetings.

Risk Management

A formal review of the Charity’s risk management processes is undertaken on an annual basis.

The key controls used by the Charity include:

Systems of internal control include:

Through the risk management processes established for the Trust, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately safeguarded against material mismanagement or loss.

Objectives and Activities

Charitable Objects

The aim of the Charity is

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The Crescent Pre School Nursery Limited

Trustees Report for the year ended 31[st] August 2020 (Cont’d)

Charitable Objects (continued)

Aims and intended impact

We are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. We will make reasonable adjustments to meet the needs of staff or children in our care who are or become disabled.

Public Benefit

The public benefit that The Crescent Pre-School Nursery Limited is providing is to advance the education of children below statutory school age in and around Stoke on Trent by the provision of a kindergarten.

In setting our objectives and planning our activities the trustees have given careful consideration to the Charity Commission’s guidance on public benefit. As a charity, the parents of our children have the assurance that all our income must be applied for the benefit of the children attending our settings.

Principal activities of the Period

In its latest Ofsted Inspection, the Nursery was judged to be outstanding for the third consecutive inspection, the top judgment for any school or Nursery. It is a constant aim to remain as a facility offering the very best in learning and childcare for fewer than 5s. The local community desperately needs the facility but struggles to pay for it.

Achievements and performance

The charity was set up to provide high quality provision to disadvantaged children in the local area, therefore nursery places are offered to 2, 3 and 4 year olds funded by Government Nursery education Grant funding. The nursery is located in an area of high deprivation which was the fundamental reason for setting up the charity in the first place. It is not easy and the increasing financial plight of the country is mirrored in the challenges faced by the nursery. We are faced with regular late payers and significant unpaid fees.

The Pre-School always works hard to eradicate any outstanding debts and supports families through this. Each year the nursery is able to replenish resources and equipment and is currently working hard to update the outside areas’.

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The Crescent Pre School Nursery Limited

Trustees Report for the year ended 31[st] August 2020 (Cont’d)

Achievements and performance (cont’d)

This year with the impact of COVID-19 on the charity it has resulted in periods of needing to close for a short period of time and also offer keyworker places, with this known we have still been able to stay sustainable which is shown evident in this year’s accounts and we will continue to strive to support stability for the future of The Crescent Pre-School Nursery.

The nursery has been in a position to continue to employ high quality and highly qualified staff. We continue with encouraging and providing opportunities for Continuous Professional development such as Foundation Degrees and Ba Hons we have also ensured all staff have achieved First aid and level 2 Safeguarding. We have also enrolled on a new training scheme which has resulted in broadening the team’s knowledge. Three of our senior team have also enrolled on a BA Hons in Early Years Course and members of the team have completed a level 3 SEN course to support our ever growing demand for SEN places within our nurture room.

There has been a continuous demand for 2, 3 year funded places which are envisaged to be steady throughout September to December 2019 and then rise again in January 2020.

The nursery has gained another childcare room within the children’s centre to provide additional stability to increase 2-4 year old places and provision smaller nurturing environment for SEN children in the local area and also enabling the nursery to provide stay and play and baby groups for the community which has been a huge success.

At the moment the nursery occupancy is predominantly funded for children accessing 2, 3, 4 year funding. The rate for 2 year old funding is higher than 3 year funding so is more cost effective. We have looked at the most effective sessions in regards to cost and staffing, whilst we are obliged to be flexible under the funding terms and conditions we have taken into account maximising the number of children in each day with quality and flexibility and the sessions provided.

The Nursery Directors have set up an onsite café within the Children’s Centre which the nursery accesses for the main lunch meals, and uses a local supermarket for all other food stuffs which has positively impacted on food costs and quality. This Café has been set up to provide meals for the nursery and local families who access the site, all profit from this are gifted to the nursery.

Financial Review

Incoming resources

During the Period The Crescent received funding from the Stoke-on-Trent city council for 2, 3 and 4 year old funding and other matters, which in total came to £138,135 (2019: £181,500).

Payment by the parents was made in one of two ways, directly receiving the payment from the parents and by childcare vouchers provided by their employers.

Resources expended

The major costs during the period continue to be wages which amount to £232,703 (2019: £239,772) including employer’s national insurance.

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The Crescent Pre School Nursery Limited

Trustees Report for the year ended 31[st] August 2020 (Cont’d)

All trustees give of their time freely and no remuneration or expenses were paid in the year. No trustees or person connected with a trustee received any benefit from use of our childcare facilities in the year on more favourable terms than available to the general public.

Reserves Policy

The Trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets, which are the free reserves of the charity, should be between three and six months of general (unrestricted) operating costs and the Trustees consider that this policy provides sufficient funds to cover management, support and administration costs to be able to continue the activities of the charity in the event of a significant drop in funding, or business interruption. The free reserves at the year end were £80,405 (2019: £71,841) are not within the above policy. The Trustees are hoping to replicate the results of this Period in next period’s accounts which will move them higher within the reserve policy.

Investment Policy

The Investment policy adopted by the Trustees is to maintain a high standard of the assets of the Trust and implement a programme of continual development to optimise their use in line with the Charity’s objectives.

Future Direction and Plans of Organisation

Due to the highly qualified Childcare Manager and the Deputy Childcare Manager, the management believe this is a positive attribute for current and future staff to encourage them to study further enhancing quality. Additionally this has encouraged, three senior members of staff to undertake their BA Hons in Early Childhood Studies which was completed May 2023 and two other member of the team due to commence Ba Honours Sept 2020, we are also committed to all the team completing SEND training in the coming year. Therefore we are committed to employing highly qualified staff, which will result in the continuation of the high quality service currently being provided.

The childcare manager is committed in planning to secure funding to develop the outdoor area for the SEN children and 0-4’s to ensure that the nursery continues to provide an enabling environment outdoors as well as indoors, providing optimum opportunities for the children to learn and develop essential skills that will provide strong foundations on which future personal and academic achievements can be built. This in turn supports children from deprived backgrounds to ‘buck the trend’ of lower achievements and extends the learning opportunities for all the children who access the nursery now and in the future.

In addition to this, The Crescent Pre School Nursery has continue to transition to a Term Time setting, support the local offer of 30 hours funding for working families with eligible 3 year olds, whilst ensuring staffing costs are effective and continuous professional development is upheld.

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The Crescent Pre School Nursery Limited

Trustees Report for the year ended 31[st] August 2020 (Cont’d)

Significant events since the year end.

There have not been any significant events since the year end.

Reporting Accountants

A resolution will be proposed for the re-appointment of Bradshaws Limited, Chartered Accountants and Registered Auditors of Chester as the Independent Examiners.

Bankers

The bankers to the Trustees remain TSB.

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Declaration

A Weston Director

Independent Examiner's Report to the Trustees of

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The Crescent Pre School Nursery Limited

The Crescent Pre School Nursery Limited

I report to the charity trustees on my examination of the accounts of the company for the year ended 31st August 2020 which are set out on pages 10 to 17.

Responsibilities and basis of report

As the charity trustees of the company (and also 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 your company’s accounts as 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

I confirm that I am qualified to undertake the examination because I a member of Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the 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.

A J Bradshaw Bradshaws Limited Chartered Accountants and Statutory Auditors

Charter Court Well House Barns Bretton, Chester CH4 0DH

23[rd] July 2021

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The Crescent Pre School Nursery Limited

STATEMENT OF FINANCIAL ACTIVITIES

(including income expenditure account) for the year ended 31[st] August 2020)

Notes
Unrestricted
Funds
Restricted
Funds
Total
2020
Unrestricted
Funds
Restricted
Funds
£
£
£
£
£
Income from:
Income resources-
Charitable Activities
3
298,337
-
298,337
329,364
-
Investments
4
446
-
446
309
-
Donations
5
-
-
-
9,972
__
_



Total
298,783
-
298,783
339,645
-
Expenditure on:
Cost of generating funds
Charitable activities
6
292,399
689
293,088
321,373
596





Total
292,399
689
293,088
321,373
596
Net incoming / (expenditure)
6,384
(689)
5,695
18,272
(596)
Reconciliation of Funds
Total funds brought forward
87,809
1,955
89,764
69,537
2,551




___
Total funds carried forward
94,193
1,266
95,459
87,809
1,955		 Total
2019
£
329,364
309
9,972
__
339,645
321,969
_
321,969
17,676
72,088
___
89,764

The notes on pages 13 to 17 form an integral part of these financial statements

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The Crescent Pre School Nursery Limited

BALANCE SHEET

As at 31[st] August 2020

Notes
Fixed assets
Tangible assets
10
Current assets
Stock
Debtors
11
Cash at bank and in hand
12
Liabilities
Creditors falling due within one year
13
Net current assets
Total assets less current liabilities
Net assets
The Funds of the Charity
Unrestricted income funds
14
Restricted funds
15
Total Charity Funds		 2020
£
430
19,763
92,866
______
113,059
(31,388)		 £
13,788
81,671
__
96,459
_
95,459
94,193
1,266
_____
95,459		 2019
£
496
12,679
87,218
______
100,393
(26,597)


 £
15,968
73,796
__
89,764
_
89,764
87,809
1,955
_____
89,764

The directors’ statements required by Section 475(2) and (3) are shown on the following page which forms part of this Balance Sheet

The notes on pages 13 to 17 form an integral part of these financial statements

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The Crescent Pre School Nursery Limited

BALANCE SHEET (continued)

for the year ended 31[st] August 2020

For the year ending 31[st] August 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors responsibilities:

The financial statements were approved by the board on 23[rd] July 2021 and signed on its behalf by

………………………………………….

A Weston Director

Company Registration Number:- 06747556

The notes on pages 13 to 17 form an integral part of these financial statements

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The Crescent Pre School Nursery Limited

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31st August 2020

1. Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period and the preceding year.

1.1. Basis of preparation and assessment of going concern

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16[th] July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The trust constitutes a public benefit entity as defined by FRS 102. The Trustees consider that there are no uncertainties about the Trust’s ability to continue as a going concern over the next twelve months.

1.2 Fund accounting

Funds held by the Charity are:

Unrestricted general funds – General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Grant fund – these are funds set aside by the Trustees out of unrestricted general funds for specific future purposes or projects

1.3 Incoming resources

All incoming resources are included in the SOFA when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

1.4 Grants payable and receivable

All grants are accounted for gross when receivable. Grants payable are recognised as expenditure when the commitment is entered into.

1.5 Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.

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The Crescent Pre School Nursery Limited

NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31[st] August 2020

1.6 Investments

Investments held as fixed assets are revalued at mid-market value at the balance sheet date and the gain or loss taken to the statement of financial activities.

2 Cashflow statement

The Charity is exempt from the requirement to prepare a cashflow statement because it is a small Charity.

Unrestricted
Funds
Restricted
Funds
Total
2020
Unrestricted
Funds
Restricted
Funds
£
£
£
£
£
3
Income from Charitable activities
Nursery fees from council
163,948
-
163,948
181,500
-
Nursery fees from parents
91,591
-
91,591
147,864
-
Government Grants
42,798
-
42,798
-
-
__
_



298,337
-
298,337
329,364
-
4
Investment income
Bank interest receivable
446
-
446
309
-

_

_

446
-
446
309
-
5
Donations
Big Lottery Fund
-
-
-
9,972
-
_

_
_
____
-
-
-
9,972
-		 Total
2019
£
181,500
147,864
-
______
329,364		 Total
2019
£
181,500
147,864
-
______
329,364
309
____
309
9,972
____
9,972

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The Crescent Pre School Nursery Limited

NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31[st] August 2020

Unrestricted
Funds
Restricted
Funds
£
£
6
Cost of charitable activities
Costs directly allocated to activities:-
Play supplies
3,129
-
Food
20,157
-
Wages
232,703
-
Rent
18,502
-
Insurance
3,248
-
Staff training
1,624
-
Repairs and maintenance
4,615
-
Printing, postage and stationery
748
-
Bank charges
84
-
General charges / Telephone
1,034
-
Subscriptions
687
-
Depreciation
2,845
689
Advertising
450
-
Accountancy charges
2,287
-
Sundry Expenses
286
__
_
292,399
689
7
Staff numbers and costs
Wages
222,442
-
National insurance contributions
6,408
-
Pension Contributions
3,853

__
232,703
-		 Total
2020
Unrestricted
Funds
Restricted
Funds
Total
2019
£
£
£
£
3,129
8,290
-
8,290
20,157
34,308
-
34,308
232,703
239,772
-
239,772
18,502
20,563
-
20,563
3,248
2,657
-
2,657
1,624
1,127
-
1,127
4,615
5,806
-
5,806
748
827
-
827
84
240
-
240
1,034
710
-
710
687
531
-
531
3,534
1,939
596
2,535
450
-
-
-
2,287
2,979
-
2,979
286
1,624
-
1,624
__
_


293,088
321,373
596
321,969
222,442
235,823
-
235,823
6,408
1,361
-
1,361
3,853
2,588
-
2,588


__
______
232,703
239,772
-
239,772		 Total
2020
Unrestricted
Funds
Restricted
Funds
Total
2019
£
£
£
£
3,129
8,290
-
8,290
20,157
34,308
-
34,308
232,703
239,772
-
239,772
18,502
20,563
-
20,563
3,248
2,657
-
2,657
1,624
1,127
-
1,127
4,615
5,806
-
5,806
748
827
-
827
84
240
-
240
1,034
710
-
710
687
531
-
531
3,534
1,939
596
2,535
450
-
-
-
2,287
2,979
-
2,979
286
1,624
-
1,624
__
_


293,088
321,373
596
321,969
222,442
235,823
-
235,823
6,408
1,361
-
1,361
3,853
2,588
-
2,588


__
______
232,703
239,772
-
239,772

235,823
1,361
2,588
______
239,772

There was an average of 21 (2019: 20) members of staff in the period.

The key management personnel of the charity comprise of the nursery managers and charity secretary. The total employee benefits of the key management personnel of the Trust were £53,946 (2019: £51,948). No employee of the charity received emoluments of more than £60,000 (2019: none).

8 Trustees’ remuneration and expenses

None of the Trustees received any remuneration for services to the Trust. The Trustees did claim expenses incurred on behalf of the Charity.

9 Taxation

The Charity's activities fall within the exemptions afforded by the provisions of the Corporation Tax Act 2010. Accordingly, there is no taxation charge in these accounts.

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The Crescent Pre School Nursery Limited

NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31[st] August 2020

10
Tangible fixed assets
Motor
Vehicles
Fixtures,
Fittings and
Equipment

Cost
£
£
At 1stNovember 2019
10,158
14,003
Additions during the year
-
1,355
Disposals
-
-
_

At 31stAugust 2020
10,158
15,358
Depreciation
At 1stNovember 2019
1,354
6,839
Charge for the year
2,032
1,503

_
At 31stAugust 2020
3,386
8,342

Net book value
At 31stAugust 2019
8,804
7,164
At 31stAugust 2020
6,772
7,016
11
Debtors
2020
£
Trade debtors
8,494
Prepayments
11,269

19,763
12
Cash at bank and in hand
2020
£
Bank accounts
92,866
13
Creditors – amounts falling due within
one year
2020
£
Other Creditors
884
Accruals
30,504


31,388		 Total
2020
£
24,161
1,355
-
_
25,516
8,193
3,535

11,728
15,968
13,788
2019
£
8,109
4,570
__
12,679
2019
£
87,218
2019
£
284
26,313
_____
26,597

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The Crescent Pre School Nursery Limited

NOTES TO THE FINANCIAL STATEMENTS (continued)

For the year ended 31[st] August 2020

14 Analysis of net assets between funds Restricted Unrestricted Total
Funds Funds Funds
£ £ £
Fund balances at 31stAugust 2020
Are represented by:
Fixed Assets 1,266 12,522 13,788
Current assets - 113,059 113,059
Less :Current liabilities - (31,388) (31,388)
______ ______ ______
1,266 94,193 95,459
15 Restricted funds Opening Net outgoing Closing
balance resources balance
The restricted funds are represented by:
Fixtures, fitting & equipment grant 1,955 (689) 1,266

16 Capital commitments

There were no capital commitments authorised or contracted for at the year.

17 Taxation

The Charity is exempt from taxation on any income or capital gains.

18 Control

The Charity is under the control of the Trustees.

19 Company limited by guarantee

The Crescent Pre School Nursery Ltd is a company limited by guarantee and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

20 Related Party Transaction

Crescent Cafebar is a related trading company for which the Charity is holding cash in transit to the amount of £10,750 at the year end.

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