# **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:
- 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
- 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.
## **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:
- 31 August 2021, 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
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:
- (incorporating the
- the financial statements are prepared is consistent with the financial statements; and
- th
## **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:
- 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
- we have not received all the information and explanations we require for our audit.; or
- the trustees were not entitled to prepare the financial regime
- .
## **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:
- Enquiry of management, those charged with governance around actual and potential litigation and claims. Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside
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:
- 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.
## **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.
-14-
**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|
-15-
**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|
-16-
**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-