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2020-08-31-accounts

Company Registration Number: 05871101 Charity Number: 1137866

ST BEDE’S CHILDCARE LIMITED

A Company Limited by Guarantee

Trustees' Report and Financial Statements

For The Year Ended 31 August 2020

ST BEDE’S CHILDCARE LIMITED A COMPANY LIMITED BY GUARANTEE

CONTENTS

Members of the Board and Professional Advisers 1
Trustees' Annual Report 2
Independent Auditor's Report 7
Statement of Financial Activities (incorporating Income and Expenditure Account) 10
Balance Sheet 11
Statement of Cash Flows 12
Notes to the Financial Statements 13

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS

Registered charity name St Bede’s Childcare Limited
Charity registration number 1137866
Company registration number 05871101
Registered office C/O MHA Moore and Smalley
Richard House
Winckley Square
Preston
PR1 3HP
Principal office St Bede Church of England Primary Academy
Morris Green Lane
Bolton
Lancashire
BL3 3LJ
Trustees J Hatch OBE (Resigned 1 September 2020)
J Roberts
S Bagshaw
M A Caine
K Dearden
E Balmer (Appointed 1 September 2020)
K Denton (Appointed 1 September 2020)
E Pendlebury (Appointed 1 September 2020)
Auditor MHA Moore and Smalley
Chartered Accountants
Richard House
Winckley Square
Preston
PR1 3HP

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

The trustees submit their annual report and the financial statements of St Bede’s Childcare Limited (the charity) for the year ended 31 August 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019 .

Reference and administrative details

Reference and administrative details are shown in the schedule of members of the board and professional advisers on page 1 of the financial statements.

The trustees

The directors of the charitable company are its trustees for the purposes of charity law. The trustees who have served during the year and since the year end were as follows:

J Hatch OBE (Resigned 1 September 2020) J Roberts S Bagshaw M A Caine K Dearden E Balmer (Appointed 1 September 2020) K Denton (Appointed 1 September 2020) E Pendlebury (Appointed 1 September 2020)

Structure, governance and management Governing document

The charity is governed by its memorandum and articles of association dated 30 June 2006.

Trustees

The number of Directors shall be not less than one. There is no maximum number of Directors.

Directors are appointed by the Board as and when required.

The trustees of the Charity receive extensive training via their individual professional organisations. They engage in ongoing continuous professional development through the Headship schemes, ICAEW, ACCA and Ofsted-approved training providers.

Pay and remuneration for the Childcare Director will be reviewed annually by Sarah Bagshaw (CEO) and the Finance Director and will be linked to performance targets.

One of the trustees is a director of St Bede Academy. The operation of the Charity is managed with assistance from staff at the school and services and costs are recharged by the Academy.

Risk management

The trustees have reviewed the risks to which the charity is subject,and developed systems to mitigate these risks.

Objectives and activities

The objects of the charity are to provide better educational and childcare resources to enable all members of the community to play a fuller role in the local community and society at large.

The charity provides nursery care and after school clubs.

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

The nursery provision aims to offer parents an extension to their home, where children will be loved, cared for and educated to the highest standard, allowing parents to return to work knowing their child’s needs, likes and enjoyment are fully catered for.

The trustees have taken into consideration the Charity Commission guidance on public benefit.

Strategic Report

Achievements and performance

In the year ended August 2020 the Charity’s focus was on strengthening and growing our existing venues. This aim became more challenging from March 2020 onwards with the onset of the coronavirus pandemic. All 4 of our nurseries temporarily closed on 25th March, in line with government guidance, and re-opened on 1st June. Morris Green OOSC remained open throughout the year for key-worker and vulnerable children. St Andrews OOSC closed in March and re-opened on 1st September 2020 and Rainbows OOSC also closed in March and re-opened in July 2020 to provide holiday care. Our focus from March onwards has been on supporting our families and staff through the virus crisis. The directors regard the loyalty of both groups as key in our ongoing recovery.

Works to the outdoor area at Little Owls were completed, as planned, in October 2019 as part of our ongoing improvements programme at our nurseries. This has greatly enhanced the appeal of this nursery and has contributed to rising occupancy.

Capital works at our largest site in Leigh, which is currently home to Little Rainbows 2 nursery and Rainbows OOSC did not proceed as a result of the coronavirus pandemic. Post year-end we have resumed assessing these plans and are in discussions with our Quantity Surveyors regarding proposals to move these works forwards.

In June we surrendered the lease on Rainbow Corner nursery which had been closed since 31st March 2017. We also closed our Child-minder agency during the year to enable our Childcare Director to focus on the nurseries and OOSC.

All of our venues are rated Ofsted ‘outstanding’ or ‘good’.

The directors remain pleased with the performance of the Charity, especially throughout such a challenging year both for St Bede’s Childcare Ltd and the childcare sector as a whole.

Public benefit

The Trustees have had due regard to the Charity Commission guidance on public benefit.

Financial review

The detailed results for the charity are included in the Statement of Financial Activities.

Net incoming resources for the year were £53,468 (2019: £121,149).

Income from charitable activities was £423k lower than year ended 2019. (£1,736,423 v £2,168,236) this was as a result of the venue closures as mandated by the government due to covid-19.

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

Principal risks and uncertainties

The main risks to the Charity are:

Reputational risk and Ofsted inspections

St Bede’s Childcare continues to be a well-established high quality childcare provider. We have strong links with the local authorities that we operate under and they regularly recommend our settings to local families. All of our venues are rated Ofsted outstanding or good. We maintain this high quality care by having robust systems in place for training, safeguarding and recruitment which are constantly reviewed to ensure their continued effectiveness year on year. Staff morale is good and staff turnover is low. The majority of our employees, particularly our management teams, are long-standing.

Business Interruption

This has been tested this year throughout the coronavirus pandemic. The Charity has still performed well due to our strong management team and loyal staff & families. We have contingency plans in place for a number of scenarios. Our Site Manager oversees buildings maintenance to mitigate as much risk as possible of buildings becoming not fit for purpose. We also have additional insurance cover in place as further protection.

Further outbreaks of the coronavirus and subsequent ‘lockdowns’

St Bede’s Childcare now have plans in place to deal with any future outbreaks or lockdowns. These have been put in place as a result of the expertise of our strong leadership teams. Along with the majority of businesses in the country, the childcare sector has suffered the adverse economic effects of the pandemic. We continue to monitor and manage the situation very closely.

Factors likely to affect future financial performance or position

Decrease in demand for childcare

St Bede’s Childcare use a specialist software system in our nurseries. The nursery management staff use this software onsite to facilitate the day-to-day running of the venues and it is kept ‘live’ with all enquiries and future bookings recorded immediately. Our experienced finance team oversee this system and produce monthly reports and reconciliations. Occupancy is one of our most important KPI’s and is monitored by the finance team and reported to the board on a regular basis. Weekly KPI’s are prepared at each OOSC, collated by the finance team and also reported to the board. This enables the directors to have an early warning system to identify any venues with falling numbers so that targeted marketing can then be put into place.

Government Funding

Government funding continues to be an issue across the childcare sector. Hourly funding rates are still below the level required to enable nurseries not to require a ‘top-up’ payment from parents/carers for meals. We are aware of nurseries within the sector also making charges for resources. This is not a course of action that St Bede’s Childcare has had to take to date. Compounded with the increases to national living wage, low government funding rates continue to cause problems for the childcare sector.

Reserves

At 31 August 2020, the charity held reserves totalling £1,076,083. Of this, £4,081 were restricted balances held as per the detailed information in note 20. A further £83,526 are balances designated as a hardship fund and £763,563 relates to the net book value of fixed assets. The remaining £224,913 are unrestricted balances for use at the discretion of the charity.

The trustees consider that a reasonable level of free reserves is 1 month’s running costs. This would be approximately £170,000. Extra reserves are being held to ensure financial stability during the current coronavirus pandemic and associated business uncertainty. Any free reserves that are not used in this way are being held to fund future capital works and potential expansion. The directors regard this as prudent in the current economic climate and are also aware of the ongoing rising costs of national living wage and government funding rates in Early Years still not increasing accordingly.

At the year end the charity was holding £4,081 in restricted balances received from Bolton Local Authority to provide free breakfasts at the Morris Green Out of School Club.

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

Plans for future periods

In the year ended August 2020 plans to begin capital works at our Leigh site were put on hold due to the global pandemic. Post year-end we have started to progress these works. Surveys are being completed by our Quantity Surveyors for presentation to the board so that decisions can be made on how to progress our plans. Initial works planned for 2021 are repairs to the roof which will enable the mothballed areas of the building to be brought into use.

Our newly-appointed Operations Director is working closely with our Site Manager and Childcare Director to investigate expansion at our Little Owls site due to increasing occupancy.

The directors continue to monitor the local market to look for potential acquisitions.

Fundraising standards information

The charity does not currently raise funds from the public.

Responsibilities of the trustees

The trustees (who are also directors of St Bede’s Childcare 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.

In so far as the trustees are aware:

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

Auditor

MHA Moore and Smalley are deemed to be re-appointed under section 487 (2) of the Companies Act 2006.

Small company provisions

This report has been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities”, and in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Signed by order of the trustees Gane Roberta

……………………………………….

June Roberts Trustee

Registered office: St Bede Church of England Primary Academy Morris Green Lane Bolton Lancashire BL3 3LJ

Date: 24/03/21

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 AUGUST 2020

Opinion

We have audited the financial statements of St Bede’s Childcare Limited (the ‘charitable company’) for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 AUGUST 2020

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 4, the trustees (who are also the directors of St Bede’s Childcare Limited for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 AUGUST 2020

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Christine Wilson (Senior Statutory Auditor) For and on behalf of

MHA Moore and Smalley

Richard House 9 Winckley Square Preston PR1 3HP

26/03/2021

………………………….

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 AUGUST 2020

Note
Income and endowments from:
Donations and legacies
2
Charitable activities
3
Investments
4
Other
5
Total income and endowments
Expenditure on:
Charitable activities
6/7
Total expenditure
Net income / (expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
9,845
1,746,607
236
270,315
2,027,003
1,968,200
1,968,200
58,803
-
58,803
1,013,199
1,072,002		 Restricted
funds
£
-
-
-
-
-
5,335
5,335
(5,335)
-
(5,335)
9,416
4,081		 2020
Total
Funds
£
9,845
1,746,607
236
270,315
2,027,003
1,973,535
1,973,535
53,468
-
53,468
1,022,615
1,076,083		 2019
Total
Funds
£
-
2,184,615
250
-
2,184,865
2,063,716
2,063,716
121,149
-
121,149
901,466
1,022,615

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

BALANCE SHEET

AS AT 31 AUGUST 2020

2020 2019
Unrestricted Restricted Total Total
funds funds Funds Funds
Note £ £ £
Fixed assets
Intangible assets 14 - - - -
Tangible assets 15 763,563 - 763,563 789,190
-
763,563 - 763,563 789,190
Current assets
Debtors 16 96,281 - 96,281 70,810
Cash at bank and in hand 662,452 4,081 666,533 635,895
758,733 4,081 762,814 706,705
Creditors: amounts falling due within
one year 17 (190,039) - (190,039) (197,433)
Net current assets 568,694 4,081 572,775 509,272
Total assets less current liabilities 1,332,257 4,081 1,336,338 1,298,462
Creditors: amounts falling due after
more than one year 18 (260,255) - (260,255) (275,847)
Net assets 1,072,002 4,081 1,076,083 1,022,615
Charity Funds
Restricted income funds - 4,081 4,081 9,416
Unrestricted funds 1,072,002 - 1,072,002 1,013,199
Total charity funds 1,072,002 4,081 1,076,083 1,022,615

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

These financial statements were approved and authorised for issue by the members of the committee on 24/03/2021 ……………… and are signed on their behalf by:

………………………………………

June Roberts Director

The notes on pages 13 to 26 form part of these financial statements.

Company Registration Number: 05871101

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2020

Note
Cash flow from operating activities:
Net cash flow from operating activities
20
Cash flow from investing activities:
Payments to acquire tangible fixed assets
Interest received
Net cash flow from investing activities
Cash flow from financing activities
Repayment of long term loans
Interest paid
Net cash flow from financing activities
Net increase/(decrease) in cash and
cash equivalents
Cash and cash equivalents at 1 September 2019
Cash and cash equivalents at 31 August 2020		 £
(8,337)
236
(17,028)
(15,934)		 2020
£
71,701
(8,101)
(32,962)
30,638
635,895
666,533		 £
(63,568)
250
(27,471)
(16,335)		 2019
£
175,315
(63,318)
(43,806)
68,191
567,704
635,895

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

General information and basis of preparation

St Bede’s Childcare Limited is a charity registered in England and also a company limited by guarantee. 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. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are the operation of full day care nursery provision for children from 6 weeks to 4 years all year around together with breakfast, after school and holiday care for 3 to 11 year olds.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest pound.

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

Going concern

The trustees are required to assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation of the accounts. All four of our nurseries have been fully open since June 2020. The trustees expect income to return to pre-pandemic levels throughout the year ended 2021 as more people return to work from furlough and/or continue to need childcare if they are working from home. The Trustees and Senior Management Team continue to monitor the levels of the charity’s reserves. At the date of approving these accounts the trustees have a reasonable expectation that the charity will be able to manage the situation and that it is has sufficient cash resources to enable it to meet its liabilities as they fall due for at least 12 months from the date of approval. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Funds

Unrestricted funds 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.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (continued)

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Grants where the application of the grant is determined by the funder are included as restricted funds. Grants where there are no conditions set by the funders other than the general objects of the charity are included as unrestricted funds. Grants are accrued when any conditions on their receipt have been met and are deferred where conditions on their receipt have not been met.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes interest. Interest income is recognised using the effective interest method.

Fees income represents amounts receivable for childcare services within the year.

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following heading:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (continued)

Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Judgements and key sources of estimation uncertainty

There have been no significant judgements made in the process of preparing the financial statements.

There have been no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

2 Donations and legacies

Unrestricted
Funds
£
Donations
9,845
9,845		 Restricted
funds
£
-
-		 2020
Total
Funds
£
9,845
9,845
Unrestricted
Funds
£
Fees
1,736,423
Other income
10,184
1,746,607		 Restricted
funds
£
-
-
-		 2020
Total
Funds
£
1,736,423
10,184
1,746,607

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

3 Income from charitable activities (continued)

Unrestricted
Funds
£
Grant income
-
Fees
2,168,236
Other income
2,431
2,170,667
4
Income from investments
Unrestricted
Funds
£
Bank interest receivable
236
Unrestricted
Funds
£
Bank interest receivable
250
5
Other income
Unrestricted
Funds
£
Coronavirus Job Retention Scheme Grants
210,315
Other Coronavirus Related Grants
60,000
270,315		 Restricted
funds
£
13,948
-
-
13,948
Restricted
funds
£
-
Restricted
funds
£
-
Restricted
funds
£
-
-
-		 2019
Total
Funds
£
13,948
2,168,236
2,431
2,184,615
2020
Total
Funds
£
236
2019
Total
Funds
£
250
2020
Total
Funds
£
210,315
60,000
270,315

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ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

6 Analysis of expenditure on charitable activities by fund type

Unrestricted
Funds
£
Wages and salaries
1,345,023
Food
78,380
Heat and light
30,551
Rent and rates
106,771
Repairs and maintenance
22,643
Cleaning and caretaking
25,394
Insurance
17,918
Telephone
5,001
Equipment and activities
67,294
Venue set up costs
-
Legal and professional
46,155
Depreciation
29,690
Senior management recharge
140,302
Administration
13,343
Bank interest (note 12)
15,934
Other expenses
11,842
Bad debt written off
(115)
Loss on disposal of tangible fixed assets
4,274
Governance costs (note 8)
7,800
1,968,200
Unrestricted
Funds
Wages and salaries
1,422,313
Food
111,705
Heat and light
36,360
Rent and rates
117,304
Repairs and maintenance
25,686
Cleaning and caretaking
26,403
Insurance
16,155
Telephone
2,156
Equipment and activities
88,821
Venue set up costs
4,037
Legal and professional
2,845
Depreciation
30,876
Senior management recharge
117,496
Administration
16,746
Bank interest (note 12)
16,335
Other expenses
802
Bad debt written off
1,064
Governance costs (note 8)
7,080
2,044,184		 Restricted
funds
£
5,058
-
-
-
-
-
-
-
277
-
-
-
-
-
-
-
-
-
-
5,335
Restricted
funds
£
19,432
-
-
-
-
-
-
-
100
-
-
-
-
-
-
-
-
-
19,532		 2020
Total
Funds
£
1,350,081
78,380
30,551
106,771
22,643
25,394
17,918
5,001
67,571
-
46,155
29,690
140,302
13,343
15,934
11,842
(115)
4,274
7,800
1,973,535
2019
Total
Funds
£
1,441,745
111,705
36,360
117,304
25,686
26,403
16,155
2,156
88,921
4,037
2,845
30,876
117,496
16,746
16,335
802
1,064
7,080
2,063,716

-17-

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

7
Analysis of expenditure on charitable activities by activity type
Direct
charitable
costs
£
Wages and salaries
1,350,081
Food
78,380
Heat and light
30,551
Rent and rates
106,771
Repairs and maintenance
22,643
Cleaning and caretaking
-
Insurance
-
Telephone
-
Equipment and activities
67,571
Venue set up costs
-
Legal and professional
-
Depreciation
-
Senior management recharge
-
Administration
-
Bank interest (note 12)
-
Other expenses
-
Bad debt written off
(115)
Loss on disposal of tangible fixed assets
-
Governance costs (note 8)
-
1,655,882
Direct
charitable
costs
£
Wages and salaries
1,441,745
Food
111,705
Heat and light
36,360
Rent and rates
117,304
Repairs and maintenance
25,686
Cleaning and caretaking
-
Insurance
-
Telephone
-
Equipment and activities
88,921
Venue set up costs
4,037
Legal and professional
-
Depreciation
-
Senior management recharge
-
Administration
-
Bank interest (note 12)
-
Other expenses
-
Bad debt written off
1,064
Governance costs (note 8)
-
1,826,822		 Support
Costs
£
-
-
-
-
-
25,394
17,918
5,001
-
-
46,155
29,690
140,302
13,343
15,934
11,842
-
4,274
7,800
317,653
Support
Costs
£
-
-
-
-
-
26,403
16,155
2,156
-
-
2,845
30,876
117,496
16,746
16,335
802
-
7,080
236,894		 2020
Total
Funds
£
1,350,081
78,380
30,551
106,771
22,643
25,394
17,918
5,001
67,571
-
46,155
29,690
140,302
13,343
15,934
11,842
(115)
4,274
7,800
1,973,535
2019
Total
Funds
£
1,441,745
111,705
36,360
117,304
25,686
26,403
16,155
2,156
88,921
4,037
2,845
30,876
117,496
16,746
16,335
802
1,064
7,080
2,063,716

-18-

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

8 Governance costs

Unrestricted
Funds
£
Audit and Accountancy fees
7,800
Unrestricted
Funds
£
Audit and Accountancy fees
7,080		 Restricted
funds
2020
Total
Funds
£
£
-
7,800
Restricted
funds
2019
Total
Funds
£
£
-
7,080

9 Auditor’s remuneration

The auditor’s remuneration amounts to an audit fee of £6,500 (2019: £5,900) excluding VAT.

10 Trustees' and key management personnel remuneration and expenses

The trustees neither received nor waived any remuneration during the year (2019: £Nil).

The total amount of employee benefits received by key management personnel is £176,947 (2019: £149,263). The charity considers its key management personnel comprise the senior management staff, whose employee benefits are recharged by St Bede Church of England Primary Academy, and the Childcare Director, whose employee benefits are included on the charity’s own payroll.

None of the trustees are accruing any pension benefits.

The trustees did not have any expenses reimbursed during the year (2019: £nil).

-19-

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

11 Staff costs and employee benefits

The average monthly number of employees during the year was as follows:

The average monthly number of employees during the year was as follows:
Management
Nursery and after school club workers
The total staff costs and employees benefits were as follows:
Wages and salaries
Social security
Defined contribution pension costs		 2020
No
19
81
100
2020
£
1,265,014
51,194
20,984
1,337,192		 2019
No
16
87
103
2019
£
1,363,481
59,907
18,357
1,441,745

No employees received total employee benefits (excluding employer pension costs) of more than £60,000 (2019: Nil).

12 Interest payable and similar expenses

nterest payable and similar expenses
Bank loans and overdrafts 2020
£
15,934
15,934		 2019
£
16,335
16,250

-20-

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

13
Net Incoming Resources
Net incoming resources is stated after charging
Depreciation
Auditors’ remuneration (net of VAT)
14
Intangible assets
Cost
At 1 September 2019 and 31 August 2020
Amortisation to date
At 1 September 2019 and 31 August 2020
Net book value
At 31 August 2019 and 31 August 2020		 2020
£
29,690
6,500		 2019
£
30,876
5,900
Goodwill
£
270,000
270,000
-

-21-

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

15 Tangible fixed assets

Cost
At 1 September 2019
Additions
Disposals
At 31 August 2020
Depreciation
At 1 September 2019
Charge in the period
Eliminated on disposals
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019
The net book value of land and buildings comprised:
Land and buildings:
Freehold
Leasehold
Leasehold improvements
16
Debtors
Trade debtors
Prepayments and accrued income		 Land and
buildings
£
907,839
1,380
(62,687)
846,532
126,880
26,252
(58,413)
94,719
751,813
780,959		 Fixtures &
fittings
£
13,932
6,957
-
20,889
5,701
3,438
-
9,139
11,750
8,231
2020
£
232,236
519,577
-
751,813
2020
£
39,028
57,253
96,281		 Total
£
921,771
8,337
(62,687)
867,421
132,581
29,690
(58,413)
103,858
763,563
789,190
2019
£
239,051
529,782
12,126
780,959
2019
£
31,163
39,647
70,810

-22-

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

17 Creditors : Amounts falling due within one year

Bank loan
Trade creditors
Accruals
Other creditors
reditors : Amounts falling due after more than one year
Bank loan		 2020
£
27,852
19,628
104,214
38,345
190,039
2020
£
260,255		 2019
£
29,288
52,916
115,229
-
197,433
2019
£
275,847

18 Creditors : Amounts falling due after more than one year

The bank loan is secured by a first legal charge over the assets of Baby Bede Private Day Nursery, Little Owls Private Day Nursery and Little Rainbows 2 Private Day Nursery.

The amount repayable after more than five years is £112,104.

19 Deferred income

Balance brought forward at 1 September 2019
Amounts deferred in the year
Amounts released to income
eferred income comprises fee income received in advance.
ovements in funds
Current year
At 1
September
2019
Incoming
resources
£
£
Unrestricted fund
946,336
2,027,003
Designated fund
66,863
-
Restricted fund
9,416
-
1,022,615
2,027,003		 Outgoing
resources
£
(1,968,200)
-
(5,335)
(1,973,535)		 2020
£
43,828
54,422
(43,828)
54,422
Transfers
£
(16,663)
16,663
-
-		 2019
£
63,964
43,828
(63,964)
43,828
At 31
August
2020
£
988,476
83,526
4,081
1,076,083

Deferred income comprises fee income received in advance.

20 Movements in funds

-23-

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

20 Movements in funds (continued)

Restricted funds

An amount of £15,000 was received in the year ended 31 August 2018 to be used for the Morris Green breakfast club at the year end a balance of £4,081 was remaining in relation to this.

Designated funds

The directors have designated an amount equal to the lower of 2.5% of the audited net balance of the balance sheet at 31 August and the reconciled bank balance to be transferred to a hardship fund for the benefit of the public.

In addition, places are held open at each venue to be used at the discretion of the Directors to aid in safeguarding and/or where particular areas of hardship are identified within families accessing our childcare.

Prior year
At 1
September
2018
Incoming
resources
Outgoing
resources
£
£
£
Unrestricted fund
755,770
2,234,299
(2,157,501)
Designated fund
57,457
-
(3,559)
Restricted fund
-
15,000
-
813,227
2,249,299
(2,161,060)
nalysis of net assets between funds – prior year
Unrestricted
funds
Fixed assets
789,190
Current assets
697,289
Current liabilities
(197,433)
Non-current liabilities
(275,847)
1,013,199		 Transfers
£
(14,193)
14,193
-
-
Restricted
funds
-
9,416
-
-
9,416		 At 31
August
2019
£
818,375
68,091
15,000
901,466
2019
Total
£
789,190
706,705
(197,433)
(275,847)
1,022,615

21 Analysis of net assets between funds – prior year

22 Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Operating leases which expire
Within 1 year
Within 2 to 5 years
More than 5 years		 2020
Land and
Buildings
£
30,000
120,000
330,000
480,000		 2019
Land and
Buildings
£
55,000
120,000
360,000
535,000

-24-

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

23 Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure) for the period
Interest receivable
Interest payable
Loss on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Decrease/(increase) in debtors
Decrease in creditors
Net cash flow from operating activities		 2020
£
53,468
(236)
15,934
4,274
29,690
(25,471)
(5,958)
71,701		 2019
£
121,149
(250)
16,335
-
30,876
18,124
(10,919)
175,315

24 Analysis of net debt

1
Net cash:
Cash at bank and in hand
Debt:
Bank loans
Net debt		 September
2019
£
635,895
(305,135)
330,760		 Cash flow
£
30,638
21,952
52,590		 Other non-
cash
changes
£
-
(4,925)
(4,925)		 31 August
2020
£
666,533
(288,108)
378,425

25 Related party transactions

The directors consider that there is no overall controlling party.

St Bede Primary Academy is considered to be a related party as the directors of the charity are also part of the management team of the school.

Included within the accounts is a balance of £14,509 (2019: £16,753) due to St Bede Primary Academy.

Management recharges of £140,302 (2019: £117,496) have been charged from St Bede Primary Academy during the period.

St Bede Teaching School Limited is also considered to be a related party as there are common directors of the two companies.

Included within the accounts is a balance of £2,286 (2019: £nil) due to St Bede Teaching School Limited.

During the year, St Bede Teaching School Limited made donations totalling £9,845 to St Bede’s Childcare Limited.

-25-

ST BEDE’S CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

26 Company limited by guarantee

The charity is a company limited by guarantee. In the event of the charity being wound up or dissolved, each member undertakes to contribute such amount as is required, not exceeding £1, for payment of any debts or liabilities.

-26-