2021-07-31-accounts - Brownberrie Lane Childcare & Education Ltd

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Brownberrie Lane Pre-School Limited

Charity number 1140348

A company limited by guarantee number 07211283

Annual Report and Financial Statements

for the year ended 31 July 2021

Brownberrie Lane Pre-School Limited

Annual Report and Financial Statements for the year ended 31 July 2021

Contents	Page
Trustees' report	2 to 4
Examiner's report	5
Statement of financial activities	6
Balance sheet	7
Notes to the accounts	8 to 11

Prepared by West Yorkshire Community Accounting Service

Brownberrie Lane Pre-School Limited

Trustees' report for the year ended 31 July 2021

Reference and administrative details of the charity, its trustees and advisors

The trustees during the financial year and up to and including the date the report was approved were: Name Position Amity Watts Chair Miranda Seed Treasurer Hailey Clare Ben Clare Charity number 1140348 Registered in England and Wales Company number 07211283 Registered in England and Wales Registered and principal address Bankers Brownberrie Lane HSBC Bank plc Horsforth 88 Town Street Leeds Horsforth LS18 5SD Leeds LS18 4AR

Registered in England and Wales Registered in England and Wales

Independent examiner

Alan Dodd FCCA West Yorkshire Community Accounting Service Stringer House 34 Lupton Street Leeds LS10 2QW

Structure, governance and management

The charity is a company limited by guarantee and was formed on 1 April 2010. It is governed by a memorandum and articles of association. The liability of the members in the event of the company being wound up is limited to a sum not exceeding £1.

Method of recruitment and appointment of trustees

The trustees of the charity are also the directors for the purposes of company law and are appointed by the members at the AGM.

Objectives and activities

The charity's objects

To enhance the development and education of children under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups.

To offer appropriate play, education and care facilities and training courses, together with the right of parents to take responsibility for and become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability.

To encourage the study of the needs of such children and their families and promote public interest in and recognition of such needs.

To instigate and adhere to and further the aims and objects of the Pre-school Learning Alliance.

Brownberrie Lane Pre-School Limited

Trustees' report (continued) for the year ended 31 July 2021

Objectives and activities (continued)

The charity's main activities

Provides pre-school, term time only, early years education for children aged two to five years old.

Public benefit statement

In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular the advancement of education.

Achievements and performance

We re-opened in September 2020 with our one-room setting divided into two as per recommended 'bubbles' guidance for education settings. As this represented a big change from our previous operating structure, it presented challenges for both children and staff who were uncomfortable with the change.

We reverted to one room in spring 2021. The charity being in a positive financial position, trustees and management agreed to continue to pay staff wages in the event of a shut down, so in January 2021 when we were forced to close by Government directive, we continued to pay our staff. We gave private fee-paying families the option of continuing to pay us while their child was at home, but ensured we would keep all places regardless. We tried to use 'holiday credit' as a way of allowing families to use up some of the lost days of childcare from the spring lockdown of 2020, but this put us in a negative position financially and we will not repeat this offer.

Many of the challenges we faced were sector-wide, including the financial and time cost of extra cleaning, and the difficulty of recruiting new members of staff. We agreed to promote one staff member to Senior Practitioner following her positive impact on the children and setting, and made plans to cover two maternity leaves from summer 2021. We investigated other methods of recruitment including offering a placement student from the Leeds Universities but the establishments did not think we should proceed, given the ever-changing nature of government guidance and the already considerable pressures on staff.

Financial review

The net income for the year was £18,019, including net income of £18,019 on unrestricted funds and net income of £0 on restricted funds after transfers.

Reserves policy

The charity's free reserves, excluding fixed assets, at the year end were £141,453.

We have fewer children enrolled from September 21 than in previous years and are predicting a loss of c. £10k in the year 21/22 as a result. However, we are in a very secure financial position because of profits received in previous years and are easily able to absorb this loss without diminishing our reserves. As our lucrative teatime shifts had become very full, we ring-fenced money to pay for an upgraded kitchen in 2022 to cope with this increased demand while putting lower priority maintenance and marketing projects such as external signage and website on hold until we know the financial outcome of the 2021/2022 year.

The trustees have ring-fenced an amount of funds to cover wages and running costs for 3-6 months should the setting experience financial difficulty. They have also calculated the cost of closure and clearance and included this amount as reserve funds. The reserves levels under this policy would be £53,000 to £106,000.

We recognise that our actual reserves are in excess of the policy upper limit, but subsequently we have invested some of this surplus in upgrading our kitchen and our playground facilities.

Brownberrie Lane Pre-School Limited

Trustees' report (continued) for the year ended 31 July 2021

Statement of trustees' responsibilities

The trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees report and the financial statements in accordance with the applicable law and UK Accounting Standards.

Company law requires the trustees to prepare financial accounts 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 the year. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and apply them consistently;

observe the methods and principles in the Charities SORP;

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 accounts on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP (FRS102)), and in accordance with the special provisions of the Companies Act 2006 relating to small companies.

Signed on behalf of the board of trustees on 20/4/2022

Amity Watts (Trustee)

Brownberrie Lane Pre-School Limited

Independent examiner's report to the trustees of Brownberrie Lane PreSchool Limited

I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 July 2021, which are set out on pages 6 to 11.

Responsibilities and basis of report

As the charity's trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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

1 accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or 2 the accounts do not accord with those records; or
3 the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination; or
4 the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Alan Dodd FCCA

23/4/2022

West Yorkshire Community Accounting Service

Stringer House 34 Lupton Street Leeds LS10 2QW

Brownberrie Lane Pre-School Limited

Statement of Financial Activities

(including summary income and expenditure account) for the year ended 31 July 2021

Notes 2021 Unrestricted funds £ Income from: Grants and donations (2) 165,824 Sales and fees 62,082 Fundraising - Bank interest 7 Other income 963 Events - Total income 228,876 Expenditure on: Salaries, pensions and NIC (3) 170,409 Payroll charges 1,710 Volunteer expenses - Training 346 Uniforms and clothing 214 Rent and rates 5,032 Utilities 4,518 Cleaning and refuse 1,999 Repairs and renewals 2,320 Internet and telephone 1,201 Crafts and materials 7,011 Furniture and equipment 379 Printing, postage and stationery 793 Insurance 2,765 Membership and registration fees 870 Food and supplies 8,167 Independent examination 900 DBS checks 187 Bank and credit charges 142 Party and gifts 521 Activities and events 307 Professional fees 200 IT, computer and software subscriptions 408 TV licence 159 Playground refurbishment - Other expenses 230 Total expenditure 210,788 Net income / (expenditure) 18,088 Transfers between funds (69) Net movement in funds 18,019 Fund balances brought forward 123,434 Fund balances carried forward (4) 141,453	2021 Restricted funds £ 750 - - - - - 750 - - - - - - - 485 247 - - 87 - - - - - - - - - - - - - - 819 (69) 69 - - -	2021 Total funds £ 166,574 62,082 - 7 963 - 229,626 170,409 1,710 - 346 214 5,032 4,518 2,484 2,567 1,201 7,011 466 793 2,765 870 8,167 900 187 142 521 307 200 408 159 - 230 211,607 18,019 - 18,019 123,434 141,453	2020 Total funds £ 155,678 55,850 724 109 1,071 882 214,314 149,486 1,124 341 440 737 5,305 3,248 1,872 4,340 1,199 7,700 3,111 422 2,728 1,022 6,536 900 26 117 81 983 - 402 144 7,446 73 199,783 14,531 - 14,531 108,903 123,434

All incoming resources and resources expended derive from continuing activities.

Brownberrie Lane Pre-School Limited

Balance sheet

as at 31 July 2021 2021 Unrestricted £ Current assets Debtors and prepayments (5) 6,053 Cash at bank and in hand (6) 141,035 Total current assets 147,088 Current liabilities: amounts falling due within one year Creditors and accruals (7) 5,635 Total current liabilities 5,635 Net current assets / (liabilities) 141,453 Net assets 141,453 Funds Unrestricted funds 141,453 Restricted funds - Total funds 141,453	2021 Restricted £ - - - - - - - - - -	2021 Total £ 6,053 141,035 147,088 5,635 5,635 141,453 141,453 141,453 - 141,453	2020 Total £ 5,973 122,347 128,320 4,886 4,886 123,434 123,434 123,434 - 123,434

For the year ending 31 July 2021 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476. The trustees (who also the directors for the purposes of company law) acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and with FRS 102 (effective January 2019).

The financial statements were approved by the board of trustees on 20/4/2022

Amity Watts (Trustee)

Brownberrie Lane Pre-School Limited

Notes to the accounts

for the year ended 31 July 2021

1 Accounting policies

Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and with the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102. There has been no change to the accounting policies since last year. No changes have been made to the accounts for previous years.

Going concern

The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.

Grants and donations

Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.

Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.

Expenditure and liabilities

Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.

Taxation

As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

Pensions

The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

Brownberrie Lane Pre-School Limited

Notes to the accounts continued

for the year ended 31 July 2021

2 Grants and donations Leeds City Council Nursery Education funding Linley and Simpson Lloyds Bank Foundation Groundwork UK - Tesco Other donations 3 Staff costs and numbers Gross salaries Social security costs Employment allowance Pensions	2021 Unrestricted funds £ 164,884 - - - 940 165,824	2021 Restricted funds £ - 750 - - - 750	2021 Total funds £ 164,884 750 - - 940 166,574 2021 £ 162,657 9,838 (4,708) 2,622 170,409	2020 Total funds £ 154,556 - 462 500 160 155,678 2020 £ 141,217 8,592 (3,049) 2,726 149,486

The average number employees during the year was 12.3, being an average of 7.4 full time equivalent (2020: 9, 7.7 FTE). There were no employees with emoluments above £60,000.

Defined contribution pension scheme Costs of the scheme to the charity for the year 4 Restricted funds Balance b/f £ Linley and Simpson - -	Incoming £ 750 750	Outgoing £ 819 819	2021 £ 2,622 Transfers £ 69 69	2020 £ 2,726 Balance c/f £ - -

Fund name Purpose of restriction

Linley and Simpson

From a local estate agent's community initiative, towards the costs of repairing damage to vandalised play equipment and upgrading the security system. Excess expenditure is shown as a transfer from unrestricted funds.

Brownberrie Lane Pre-School Limited

Notes to the accounts continued

for the year ended 31 July 2021

5 Debtors and prepayments Prepayments 6 Cash at bank and in hand Current account Savings account Fundraising account 7 Creditors and accruals Creditors Accruals Pension Taxation and social security	2021 £ 6,053 6,053 2021 £ 71,140 68,213 1,682 141,035 2021 £ 1,787 1,204 563 2,081 5,635	2020 £ 5,973 5,973 2020 £ 52,459 68,206 1,682 122,347 2020 £ 1,697 900 586 1,703 4,886

Brownberrie Lane Pre-School Limited has entered into an agreement with Close Premium Finance to pay the insurance premium to The Pre-school Learning Alliance. Creditors include the 9 payments due in the next financial year (£1,631) and the relevant credit charge (£64).

8 Related party transactions

Trustee expenses

No trustee received any expenses during this year or the previous year.

Trustee remuneration and benefits

No trustee received any remuneration or benefit during this or the previous year.

Remuneration and benefits received by key management personnel

The key management personnel of the charity include the trustees and Manager. The total employee benefits received were £38,915 (previous year: £32,331).

No trustee received any remuneration or benefit in this capacity during this or the previous year.

Brownberrie Lane Pre-School Limited

Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 July 2021

2021 2020 Unrestricted Unrestricted funds funds £ £ Income Grants and donations 165,824 155,678 Sales and fees 62,082 55,850 Fundraising - 724 Bank interest 7 109 Other income 963 1,071 Events - 882 Total income 228,876 214,314 Expenditure Salaries, pensions and NIC 170,409 149,486 Payroll charges 1,710 1,124 Volunteer expenses - 341 Training 346 440 Uniforms and clothing 214 737 Rent and rates 5,032 5,305 Utilities 4,518 3,248 Cleaning and refuse 1,999 1,872 Repairs and renewals 2,320 4,340 Internet and telephone 1,201 1,199 Crafts and materials 7,011 7,700 Furniture and equipment 379 3,111 Printing, postage and stationery 793 422 Insurance 2,765 2,728 Membership and registration fees 870 1,022 Food and supplies 8,167 6,536 Independent examination 900 900 DBS checks 187 26 Bank and credit charges 142 117 Party and gifts 521 81 Activities and events 307 983 Professional fees 200 - IT, computer and software subs 408 402 TV licence 159 144 Playground refurbishment - 7,446 Other expenses 230 73 Total expenditure 210,788 199,783 Net income / (expenditure) 18,088 14,531 Transfers between funds (69) - Net movement in funds 18,019 14,531 Fund balances brought forward 123,434 108,903 Fund balances carried forward 141,453 123,434	2021 Restricted funds £ 750 - - - - - 750 - - - - - - - 485 247 - - 87 - - - - - - - - - - - - - - 819 (69) 69 - - -	2020 Restricted funds £ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	2021 Total funds £ 166,574 62,082 - 7 963 - 229,626 170,409 1,710 - 346 214 5,032 4,518 2,484 2,567 1,201 7,011 466 793 2,765 870 8,167 900 187 142 521 307 200 408 159 - 230 211,607 18,019 - 18,019 123,434 141,453	2020 Total funds £ 155,678 55,850 724 109 1,071 882 214,314 149,486 1,124 341 440 737 5,305 3,248 1,872 4,340 1,199 7,700 3,111 422 2,728 1,022 6,536 900 26 117 81 983 - 402 144 7,446 73 199,783 14,531 - 14,531 108,903 123,434