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2021-08-31-accounts

Company Registration Number: 05871101 Charity Number: 1137866

A Company Limited by Guarantee

Trustees' Report and Financial Statements

For The Year Ended 31 August 2021

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

Registered charity name
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 CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

The trustees submit their annual report and the financial statements of (the charity) for the year ended 31 August 2021. The trustees have adopted the provisions of the Statement of Recommended statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the 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 10 July 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, CIPD 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.

Two of the trustees are directors 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 CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

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 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 2021 the charity continued to focus on our recovery from the effects of the coronavirus -furlough scheme to offset the costs of temporary venue closures and staff absences due to covid-19. Three of our nurseries returned to pre-pandemic occupancy levels by the end of the year. Little Rainbows 2 in Leigh is making a slower recovery but occupancy is rising and enquiries from prospective parents are being steadily received. Our Out of School Clubs remained quiet throughout the year and were greatly affected by bubble closures in the primary schools that they serve. Parents who were working from home did not have the same need for wrap-around care and this also affected occupancy at the clubs. Post year end, occupancy levels in the clubs are starting to recover.

Capital works at our largest site, in Leigh, were suspended in the year ended August 2020 due to the pandemic. These works have now been agreed by the board and are scheduled to begin in October 2021. This work will give the charity the capacity to increase the occupancy at our Leigh nurseries. Our catering facilities can also be expanded to cope with growing demand within the group. In addition, we are bringing two large rooms into use which will be available for hire by local community groups. This is -term strategic plan for this building to become a centre of excellence for early years. This was the vision of our ex-CEO, Jack Hatch OBE, who has now sadly passed away.

Occupancy at Little Owls Nursery in Standish rose steeply post-pandemic. As a result, the board agreed to carry out capital works to bring unused parts of the nursery back into use so that capacity could be increased. These works were completed by the end of August 2021 and Little Owls is now one of our largest nurseries. Occupancy is still increasing and the directors are confident that this demand will continue. This nursery is based in a shared building. Other businesses include a swimming pool and dance school and Little Owls benefits from the synergy of being part of a child-centred hub.

not based on one of our own sites. This decision will enable the Childcare Director to focus on the two larger clubs which are based on our own sites.

Following the appointment of a dedicated Operations Manager in September 2020 all venues now have a rolling programme for maintenance works.

The board have agreed to invest in new nursery management software to replace the current, outdated system. The implementation of this software will be led by the Finance Director and will take place between January and June 2022.

The directors remain pleased with the performance of the Charity, particularly in light of the challenges faced during a global pandemic.

Public benefit

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

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

FOR THE YEAR ENDED 31 AUGUST 2021

Financial review

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

Net incoming resources for the year were £207,172 (2020: £53,468).

Income from charitable activities increased by £342k from than year ended 2020. (£2,078,012 v £1,736,423).

Reserves

At 31 August 2021, the charity held reserves totalling £1,283,255. Of this, £3,312 were restricted balances held as per the detailed information in note 20. A further £104,279 are balances designated as a hardship fund and £783,337 relates to the net book value of fixed assets. The remaining £392,327 are unrestricted balances for use at the discretion of the charity.

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 trustees 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 £3,312 in restricted balances received from Bolton Local Authority to provide free breakfasts at the Morris Green Out of School Club and Morris Green Holiday Club Funding.

Principal risks and uncertainties

The main risks to the Charity are:

Reputational risk and Ofsted inspections

-established high quality childcare provider and we have strong links with the local authorities that we operate under. Baby Bede and Little Rainbows 2 have high numbers of children with additional needs and are both regularly recommended to families by Bolton and Wigan councils. All of our venues continue to be 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 by our Childcare Director to ensure their continued effectiveness year on year.

Business Interruption

Business interruption is an ongoing risk to the charity. Our performance throughout the pandemic has proven that we are in a str Childcare has a strong board of directors with diverse business backgrounds and skill sets which can be drawn upon when situations such as the pandemic occur. We also have strong management teams at each venue who lead well-trained and committed staff teams.

Staff Recruitment, retention and engagement

Recruitment within the childcare sector is generally becoming more difficult due to the rising costs of National Living Wage and the increasing expectations that are placed on staff at all levels. Staff retention is currently a number of years. The directors regard our employees as one of our main assets. All staff engage in regular cpd and we aim to promote from within where possible.

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

FOR THE YEAR ENDED 31 AUGUST 2021

Factors likely to affect future financial performance or position

Future outbreaks of covid-19 or other pandemics

Whilst the charity has performed well in spite of the recent pandemic, future outbreaks remain a concern. The charity still has reserves and the directors continue to monitor these levels diligently.

Increases to National Living Wage

charity did not increase fees in the year ended August 2021 but future fee increases will become inevitable as NLW rises sharply.

Going Concern

The majority of our nurseries have returned to pre-pandemic income levels throughout the year ended August 2021, with one nursery expanding and increasing capacity. This trend has continued post year end. Occupancy levels at the other nursery and our OOSC are forecast to steadily increase throughout the year ended August 2022.

Plans for future periods

In the year ended August 2021 expansion works were undertaken at Little Owls Nursery and further capital works were agreed at our largest site in Leigh. Demand continues to be high at Little Owls and the directors expect this nursery to reach capacity again within 2 years. The capital works that have been agreed for the year ended August 2022 are at our largest site, the Lancastrian building in Leigh. This building is the home of Little Rainbows 2 nursery and Rainbows OOSC. This work will enable us to increase nursery capacity within Leigh. We will also have two large rooms which we will market for rental within the local community to groups who are in keeping with our charitable aims. This continues our strategic plan to make this building a centre of excellence for early years.

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

Fundraising standards information

The charity does not currently raise funds from the public.

Responsibilities of the trustees

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.

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

FOR THE YEAR ENDED 31 AUGUST 2021

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:

there is no relevant audit information of which the

Auditor

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

Small company provisions

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

June Roberts Trustee

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

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

FOR THE YEAR ENDED 31 AUGUST 2021

Opinion

for the year

ended 31 August 2021 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

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 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

In auditing the financial statements, we have concluded that accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees annual report, other than the financial The trustees are responsible for the other information contained within the annual report[2] . 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

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

FOR THE YEAR ENDED 31 AUGUST 2021

Other information

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

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

set out on page 5, the trustees (who are also the directors of 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 responsibl 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 2021

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidancefor-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. T

Use of our report

This report is made sole ly 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

03/05/2022

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ST BEDE CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

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

FOR THE YEAR ENDED 31 AUGUST 2021

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
£
25,000
2,079,615
58
69,924
2,174,597
1,966,656
1,966,656
207,941
-
207,941
1,072,002
1,279,943		 Restricted
funds
£
-
1,397
-
-
1,397
2,166
2,166
(769)
-
(769)
4,081
3,312		 2021
Total
Funds
£
25,000
2,081,012
58
69,924
2,175,994
1,968,822
1,968,822
205,775
-
207,172
1,076,083
1,283,255		 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

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 2021

2021 2020
Unrestricted Restricted Total Total
funds funds Funds Funds
Note £ £ £
Fixed assets
Intangible assets 14 1,824 - 1,824 -
Tangible assets 15 781,513 - 781,513 763,563
783,337 - 783,337 763,563
Current assets
Debtors 16 61,453 - 61,453 96,281
Cash at bank and in hand 907,669 3,312 910,981 666,533
969,122 3,312 972,434 762,814
Creditors: amounts falling due within
one year 17 (224,561) - (224,561) (190,039)
Net current assets 744,561 3,312 747,873 572,775
Total assets less current liabilities 1,527,898 3,312 1,531,210 1,336,338
Creditors: amounts falling due after
more than one year 18 (247,955) - (247,955) (260,255)
Net assets 1,279,943 3,312 1,283,255 1,076,083
Charity Funds
Restricted income funds - 3,312 3,312 4,081
Unrestricted funds 1,279,943 - 1,279,943 1,072,002
Total charity funds 1,279,943 3,312 1,283,255 1,076,083

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

These financial statements were approved and authorised for issue by the members of the committee on 28/04/2022 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 CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2021

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 2020
Cash and cash equivalents at 31 August 2021		 £
(39,816)
58
(13,123)
(12,853)		 2021
£
310,182
(39,758)
(25,976)
244,448
666,533
910,981		 £
(8,337)
236
(17,028)
(15,934)		 2020
£
71,701
(8,101)
(32,962)
30,638
635,895
666,533

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ST BEDE CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

General information and basis of preparation

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 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 of our nurseries and out of school clubs are now open and returning to pre-pandemic occupancy levels. The trustees expect demand to continue to grow as more people return to the office or need to access childcare even when working from home. The Trustees and Senior Management Team continue to monitor the levels of the 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 CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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.

Intangible assets website development

Website development costs are capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for amortising website development is 5 years. Provision is made for any impairment.

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% - 10% 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.

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ST BEDE CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies (continued)

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.

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
25,000
25,000		 Restricted
funds
£
-
-		 2021
Total
Funds
£
25,000
25,000		 2020
Total
Funds
£
9,845
9,845

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NOTES TO THE FINANCIAL STATEMENTS

ST BEDE CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

FOR THE YEAR ENDED 31 AUGUST 2021

3 Income from charitable activities

Unrestricted
Funds
£
Fees
2,076,615
Other income
3,000
2,079,615
4
Income from investments
Unrestricted
Funds
£
Bank interest receivable
58
5
Other income
Unrestricted
Funds
£
Coronavirus Job Retention Scheme Grants
64,588
Other Coronavirus Related Grants
5,336
69,924		 Restricted
funds
£
1,397
-
-
Restricted
funds
£
-
Restricted
funds
£
-
-
-		 2021
Total
Funds
2,078,012
3,000
2,081,012
2021
Total
Funds
£
58
2021
Total
Funds
£
64,588
5,336
69,924		 2020
Total
Funds
£
1,736,423
10,184
1,746,607
2020
Total
Funds
£
236
2020
Total
Funds
£
210,315
60,000
270,315

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NOTES TO THE FINANCIAL STATEMENTS

ST BEDE CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

FOR THE YEAR ENDED 31 AUGUST 2021

6 Analysis of expenditure on charitable activities by fund type

Wages and salaries
Food
Heat and light
Rent and rates
Repairs and maintenance
Cleaning and caretaking
Insurance
Telephone
Equipment and activities
Legal and professional
Depreciation
Senior management recharge
Administration
Bank interest (note 12)
Other expenses
Bad debt written off
Governance costs (note 8)		 Unrestricted
Funds
Restricted
funds
£
£
1,406,932
2,166
92,395
-
32,604
-
106,159
-
26,683
-
26,938
-
17,111
-
5,775
-
54,347
-
25,237
-
21,866
-
114,394
-
7,404
-
12,853
-
7,572
-
489
-
-
-
1,958,760
2,166

2021
Total
Funds
£
1,409,098
92,395
32,604
106,159
26,683
26,938
17,111
5,775
54,347
25,237
21,866
114,394
7,404
12,853
7,572
489
-
1,960,926		 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)
4,724
1,965,735

In 2020 there were £5,335 of costs relating to restricted funds. £5,058 of wages and salaries and £277 of equipment and activities.

-17-

NOTES TO THE FINANCIAL STATEMENTS

ST BEDE CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

FOR THE YEAR ENDED 31 AUGUST 2021

7 Analysis of expenditure on charitable activities by activity type

Wages and salaries
Food
Heat and light
Rent and rates
Repairs and maintenance
Cleaning and caretaking
Insurance
Telephone
Equipment and activities
Legal and professional
Depreciation
Senior management recharge
Administration
Bank interest (note 12)
Other expenses
Bad debt written off
Loss on disposal of tangible fixed assets
Governance costs (note 8)
Wages and salaries
Food
Heat and light
Rent and rates
Repairs and maintenance
Cleaning and caretaking
Insurance
Telephone
Equipment and activities
Legal and professional
Depreciation
Senior management recharge
Administration
Bank interest (note 12)
Other expenses
Bad debt written off
Governance costs (note 8)		 Direct
charitable
costs
£
1,350,081
78,380
30,551
106,771
22,643
-
-
-
67,571
-
-
-
-
-
-
(115)
-
-
1,655,882
Direct
charitable
costs
£
1,409,098
92,395
32,604
106,159
26,683
-
-
-
54,347
-
-
-
-
-
-
489
-
1,721,776		 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
£
-
-
-
-
-
26,938
17,111
5,775
-
25,237
21,866
114,394
7,404
12,853
7,572
-
7,896
247,046		 2021
Total
Funds
£
1,409,098
92,395
32,604
106,159
26,683
26,938
17,111
5,775
-
25,237
21,866
114,394
7,404
12,853
7,572
489
7,896
1,968,822
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

-18-

ST BEDE CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

8 Governance costs

Governance costs
Unrestricted Restricted 2021 2020
Funds funds Total Total
Funds Funds
£ £ £ £
Audit and Accountancy fees 7,896 - 7,896 7,800

9 remuneration

6,825 (2020: £6,500) excluding VAT.

10 Trustees' and key management personnel remuneration and expenses

The total amount of employee benefits received by key management personnel is £142,781 (2020: £176,947). 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

Three trustees received remuneration (including employee benefits recharged by St Bede Church of England Primary Academy) of £75,924 during the year (2020: four trustees £120,729).

The trustees had expenses reimbursed during the year of £799.80 (2020: £nil).

11 Staff costs and employee benefits

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

Management
Nursery and after school club workers		 2021
No
16
80
96		 2020
No
19
87
100

The total staff costs and employees benefits were as follows:

Wages and salaries
Social security
Defined contribution pension costs		 2021
£
1,327,544
57,907
23,647
1,409,098		 2020
£
1,265,014
51,194
20,984
1,337,192

Wages and salaries includes £76,315 (2020: £69,345) of staff charges at cost from St Bede Primary Academy.

No employees received total employee benefits (excluding employer pension costs) of more than £60,000 (2020: Nil).

-19-

ST BEDE CHILDCARE LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

12
Interest payable and similar expenses
Bank loans and overdrafts
13
Net Incoming Resources
Net incoming resources is stated after charging
Depreciation
(net of VAT)
14
Intangible assets
Cost
At 1 September 2020
Additions
At 31 August 2021
Amortisation to date
At 1 September 2020
Amortisation
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Goodwill
£
270,000
-
270,000
270,000
-
270,000
0
0		 2021
£
12,853
12,853
2021
£
21,866
6,825
Website
-
1,920
1,920
-
96
95
1,824
0		 2020
£
15,934
15,934
2020
£
29,690
6,500
Total
270,000
1,920
271,920
270,000
95
270,095
1,824
0

-20-

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

FOR THE YEAR ENDED 31 AUGUST 2021

15 Tangible fixed assets

Cost
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge in the period
Eliminated on disposals
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
The net book value of land and buildings comprised:
Land and buildings:
Freehold
Leasehold
16
Debtors
Trade debtors
Prepayments and accrued income		 Land and
buildings
£
846,532
26,600
-
873,132
94,719
18,561
-
113,280
759,852
751,813		 Fixtures &
fittings
£
20,889
13,216
-
34,105
9,139
3,305
-
12,444
21,661
11,750
2021
£
225,422
534,430
759,852
2021
£
32,119
29,334
61,453		 Total
£
867,421
39,816
-
908,630
103,858
21,866
-
125,724
781,513
763,563
2020
£
232,236
519,577
751,813
2020
£
39,028
57,253
96,281

-21-

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

FOR THE YEAR ENDED 31 AUGUST 2021

17 Creditors : Amounts falling due within one year

Creditors : Amounts falling due within one year
Bank loan
Trade creditors
Accruals and deferred income
Other creditors
Creditors : Amounts falling due after more than one year
Bank loan		 2021
£
28,853
53,170
105,849
36,689
224,561
2021
£
247,955		 2020
£
27,852
19,628
104,214
38,345
190,039
2020
£
260,255

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 £75,908.

19 Deferred income

Deferred income
Balance brought forward at 1 September 2020
Amounts deferred in the year
Amounts released to income		 2021
£
54,422
46,909
(54,422)
46,909		 2020
£
43,828
54,422
(43,828)
54,422

Deferred income comprises fee income received in advance.

20 Movements in funds

Current year
Unrestricted fund
Designated fund
Restricted fund		 At 1
September
2020
£
988,476
83,526
4,081
1,076,083		 Incoming
resources
£
2,174,597
-
1,397
2,175,994		 Outgoing
resources
£
(1,964,633)
(2,023)
(2,166)
(1,968,822)		 Transfers
£
(22,775)
22,775
-
-		 At 31
August
2021
£
1,175,664
104,279
3,312
1,283,255

-22-

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

FOR THE YEAR ENDED 31 AUGUST 2021

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 £1,915 was remaining in relation to this. The charity is carrying an amount of £1,397 at the year end to be used for the Morris Green holiday club funding.

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
2019
Incoming
resources
Outgoing
resources
£
£
£
Unrestricted fund
946,336
2,027,003
(1,968,200)
Designated fund
66,863
-
-
Restricted fund
9,416
-
(5,335)
1,022,615
2,027,003
(1,973,535)
Analysis of net assets between funds
prior year
Unrestricted
funds
Fixed assets
763,563
Current assets
758,733
Current liabilities
(190,039)
Non-current liabilities
(260,255)
1,072,002		 Transfers
£
(16,663)
16,663
-
-
Restricted
funds
-
4,081
-
-
4,081		 At 31
August
2020
£
988,476
83,526
4,081
1,076,083
2020
Total
£
763,563
762,814
(190,039)
(260,255)
1,076,083

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		 2021
Land and
Buildings
£
57,750
147,750
300,000
505,500		 2020
Land and
Buildings
£
30,000
120,000
330,000
480,000

-23-

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

FOR THE YEAR ENDED 31 AUGUST 2021

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		 2021
£
207,172
(58)
12,853
-
21,866
34,828
33,521
310,182		 2020
£
53,468
(236)
15,934
4,274
29,690
(25,471)
(5,958)
71,701

24 Analysis of net debt

1
Net cash:
Cash at bank and in hand
Debt:
Bank loans
Net debt		 September
2020
£
666,533
(288,108)
378,425		 Cash flow
£
244,448
13,239
257,687		 Other non-
cash
changes
£
-
(1,940)
(1,940)		 31 August
2021
£
910,981
(276,808)
634,173

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 £16,883 (2020: £14,509) due to St Bede Primary Academy.

Management recharges of £114,394 (2020: £140,302) have been charged from St Bede Primary Academy during the period.

Three trustees received remuneration (including employee benefits recharged by St Bede Church of England Primary Academy) of £75,924 during the year (2020: four trustees £120,729).

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 £3,908 (2020: £2,286) due to St Bede Teaching School Limited.

During the year, St Bede Teaching School Limited made donations totalling £25,000 (2010: £9,845) to St

-24-

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

FOR THE YEAR ENDED 31 AUGUST 2021

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.

-25-