**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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping 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:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
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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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 August 2020, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **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:
- the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report has been prepared in accordance with applicable legal requirements.
## **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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report.
## **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.
-8-
**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:
- Expenditure on charitable activities includes all costs relating to the operating of the nurseries and clubs.
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:
- Freehold property - 2% - 10% per annum straight line
- Leasehold property - 2% per annum straight line Fixtures and fittings - 20% per annum straight line
## **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.
-14-
**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|
|---|---|---|
- **3 Income from charitable activities**
|**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|
|---|---|---|
-15-
**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|
|---|---|---|
-16-
**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-