ACORN EARLY YEARS FOUNDATION IA Charitable Company Limited by Guarantee) FINANCIALSTATEMENTS YEAR ENDING 310ECEMBER 2020 Charity number.. 1145108 Company number.. 07703801
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 CONTENTS Trust86s' Roport Page 3 Independent Audltor's Report Page 14 statement of Fina18* Activities Page 18 Balancè Shoel Page 19 Statetnent of Cash Flows Page 20 NolÈs lo thè Fknanclal 8lat8rn8nls Page 21
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 TRUSTEES, REPORT The trustee5, who are also the directors of the Charity for the purposes of the Comp3nles Att, submlt thelr Annual Repo¥t together with the alated financi31 statements for the ye3r ended 31 Decernber 2020. The fln8nclal statements comply with the Charities Act 201L. the Compantes kt 2006, the Memtsrandum and ArtitlÈs ol Assoclation, 2nd Accounting and RÈporting by Charities., Statement of Recommended Practitr applicable to charitiès preparlng thelr attounts In accordance with the Ftnancial Reportln8 Stsndard applicable In the and Republic of Ireland IFRS 1021 leflectwe l January 20191. Referen and Administiative Details Chartty name,, A¢orn Early Years Faundatlon Also known as.. Acorn Early Yeir5- Acorn Childc3re,' Acorn Forpst Schools, Acorn TraininE, Acorn Caterin8 Chartty number- 1145108 Company number: 07703801 The re8lStered &ddfess lor the Charity15 3150 thtr temporary offlce address for the Central Supporl team.. Wesley Hou 17 South Street C35tlethorpe Milton Keyne5 MK19 7EI The tru5tee5 who Served durlng the perlod were as follows.. Ruth Stone Hannah F.vans Carolyn Norfolk Katy Boyd Glles Chilton Eva Lloyd-RElchllng NarÈndrÈ Lallanl vanp.ssa Gwynn Damien Beedhjm Allawee Albaghdadi Rebecca Charles Robert Prosser-Dryer Appolnted June 2016. Chalr from June 2017 Appointed June 2017 Appolnted 2017 Appointed June 2017, reslgned May 2020 Appointed Jecernber 2017 Appointed June 2018 Appolnted July 2018 Appolnted February 2020 ApptbintÈd FÈbruary 2020 AptKilnted February 2020 Appointed February 2020, reslgnÈd SÈptembÈr 2020 Appointed Febru8ry 2021 The trustees delegate the day-to-day m8naEement of the charity to the £hlef eKecutlve officer a¢)d the senlor leadershlp team., Zoe Raven Teresè G8rdner Alex Hunter Kleran Glackin ura Andrews Gabble Brandon steve Petty CEO & Company Secretary Fin4nce Manager Operation5 Manager HR M4nager Senior Early Years Manager Marketing and Communlcations Manager Fzcilities and Health & Safety Manager 8ankers- Handelsbanken Moorgate House 201 Sllbury Boulevard Mihon Keynes MK9 ILZ
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 TRUSTEES, REPORT 5olltitors'. Geoffrey LÈgver 251 Upper Thlrd Street Centr41 Mllton Keynes MK9 IDR Auditors.. Steve Robinson Mercer and Hole Sllbury Court 420 Sllbury Boulevard Central Mllton Keynes MK9 2AF
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 TRUSTEES, REPORT About Acorn Early Years Foundation History of Acorn The flrst Acorn Day Nursery opened In 1989, in the village of Ca5tlEthorpe. In the home ol founder. Zoe Raven, who then grew the organlsatlon Into Acorn Childcare, a group tslsÈven nuiseries in Milton Keynes and Northants. In 2009, a not-for-prolit515ter companv, Tall Oaks, wasfomied to offert¥ainlngand forest schools, 8nd thls then became a charitable social enterprise in 20JI, as part of a plarl to transfer the o¥iginal Acorn nurseries into a not-for-proflt organlsatlon. New nurseries and the existing nurserie5 3nd out-of-5chool clubs were then t¥an5ferred in stages into Acorn Chlldcare 2, the charltable company. and when this staged transition was tornplÈted at the end of 2016, wlth Bll operations transferred to the charlty, the organls3tion changed its name to Acorn Earl¥ Year5 Foundation IAcoml to reflect the range of childcare and related seNices besno pravlded. The drivÈr bÈhlnd the move from prlvate company to charitable social enterprlse wa5 the dÈsirÉ to provlde high quality, affordable childcare and early years edutÈtlon In areas of deprlvation as well a5 in more affluent location5, and th15 was made posslble with a cr055-5ub5idy model. Asthe or8ènlsatlon h8s evolved, the emphasison soclal impact has bOrne central to It5 policle5, practlce. ethos èrld vzlues. Acorn has a putatIOn for encouraging outdoor play ind learnsh& for providing professlonal development opportunlties and for 3n ethlc of care whlth Is embedded across the organi5atlon. It has also devÈlopÈd extÈnslve experience of working in rtnership with other organisatlons, and olfering Innovative solutions to childcare problems, includinB occasbnal crèches for £harity conferences, Ind provlding freshly cooked healrhy meals for nurserles that have limited catering facllitle5. Mlssion and Objectives Acorn'5 mlsslon statement Is'to be on Insplrt7tionglle¢7rnino orgon150tion whlch operates0 modelof Éxtellenceloreorlyyeors coreond educution whlch Is Jcctsslble to ttly. The d)arlty's oblectlves 3re to enhance the development and ed(atIon of chlldren prlmarity underthe age of eleven bv= The provision of hlgh quality chlldcarÈ In nursÈrlÈs, outf-sthOOl clubs and forest schools,. WorklnÉ to ensure th8t high quality childcare Isavallablètochildren and famllles regardless of means, race, dibilIty* Eender, rellglon, belief or any other factor,, Identifylng other social and developmental SUPPDrt needs ol thlldren and famllles and seekln8 to ensurethese are met,. Encouragingi enablln8 and supporting the involverllent of parents and careys in thelr chlldren's leaTning and development., and Contrfbuting to the professional developfflellt ol those worklng In childcare. Ethos and Pedagogy Acorn have embraced an ethic of re 15 a bbs15 for Its tore values, and 8 relational pedagogy. The ethic of carÈ prIotISeS tarlng relationships and a responsive appr03ch. It views iare as a value. not just a practice, and is applied to Atorn's dÈ3llngs with everyone,. children, family membÈrs, staff members and the local community. Children need to experience and t(k see genUIne carln8 practices If they are to learn how to dÈvélop caring relations and a caring attitude themselves. A relational pedagogy underplns chlldren's leaTning 4nd developmÈnt, re£ognlsin8 the irnport8nce of personal relat5onship5 betwepn children, parents and staff and thE role of zdults in childFen'5 educatlon, Thls also indudes children's relationships wtth peoplÈ In lotal communltiÈs, IncludinE the elderlyj and with the natural world. Home v?slts are normally a key aspect of the settllng-ln process for chlldren, 18ying the foundations of rtnership wlth parents, and Inlergeneratlonal vlsit5 to [e home5 and retirement attommodatlon Ère a rÈgular feature for most of the ntsrse¥les. Both horne visits and the intergenerational vi51ts were unBbleto take plice durlng the Covld pandemic. but we hope to reintroduce both of these In the near future. Acorrfs approach 31rT15 to be halistic and pe150llallsed. and prtorltlslng carlnE relationships, which are critical to a rhild's sotlal and emotional wellbeing.
ACORN EARLY YEARS FOUNDATION Flnancial statements for the ye2r ended 31 December 2020 TRUSTEES, REPORT The five values that arlse Irom thls ethos are.. Personal PErsonallslng cgre and edutstlon, tre3tlng children, parents and staff as Indlvidu8ls. within suppOrte, i@spÈciful ielationships Professlonal striving to be a learning organi5ation, continually reflecting and developing the knowledge. skllls and qualifications of the stzff teams Nurturlng-the tore of Acorn's ethlc of care.. professional love wlthln a hollstlc approach that CompaSseS nutrition and encouragement af healthy lifpstyle5 Outdoor- encouraging play and learning In natural ènvlronmÈnts, through exteDslvÉ forèst sthool provisio, end every chlld spending time outdoors every day Ethlc81- putting chlldren before profit. and ljeing incIsEVe and sustainable, both environmentallyand financially. Seekln8 excellence, honesty and Integrlty In all aspecls of Acorn's work structure, Governance and Management Acorn EarlyYe3rs Foundation is Incorporated as 8 Charttable Company limited byguarantee, and has a governing document of Artlcles of Asso£latloTh. The board of trustees delegates the Jdmlnlstration, Includlng flnanclal Mareernent, to thÈ CEO, who works wlth a central support office team to co-ordinate support for the nurserle5, Out-of-school clubs, forest 5choo15, Caterlng departmét)t and tralnlng cÈntre. The trustees have approved a Ilnancial delegated authorltyframework, and a rI5k man3gement fr3mÈwork and reglster. Role descriptsons for the CEO, chalr and trustees set out the scope of delegation, and trustee5 h?ve adopted a code of condurt. Acorn has a robust procedure for recruiting 3nd onboa¥ding potentlal trustee5. based on a ski115 rnatrlxj g?ps wlthlh thÈ sklll set of the current board are identified and potential board mernbers are soughi, rne4suringtheir capab151tles to flll the g3p,-fh@ initlal shortllstlng and interview process is delegated to the Governantr & HR Commlttee, who then rec(kmrnend IndlvSduHls to attend a bDard meÈtlng as non-voting members, before a unanimous agreement by all present board members Is required Prior to the appointment. Poll reviews ale presented to the trustees, and trustees are encouraged to focu5 On at le35t one key are? of the orgènI5atlon. Eva Lloyd and vanes Gwynn lolntly share the rtrle of SafeguardingTrustÈe. TrustÈes dlscuss and 2pprave the payand remuneratlon of the CEO e4¢h year and havean overvlew Of sÉnlormanagementsalar1esandthe overall p3ysc3le3nd falrpaypolScy. There arefour commiitees.. Finance, Audlt and R15k, chalrÈd by Hannah Evans,. StrateBY and Impact, chalred by Narendr8 Lall8ni.' Governance and HR. chaired by Vane55a Gwwn, and Childcare, Learnlng and DevelopMeDt, chaired by Eva Lloyd. The Board of Trustees There were seven trustees at rhe starr of 2020, and then four new appolntments In February, followlnga recrultment drive at the end of 2019. Durlng thÈ year there were also two resignations, resulting in nine tfUStee5 by the end of the yea¥, There wa5 onty one face to face fvll b02rd mÈetln8 In 2020. but from March onwards there were regular conference ca115. In additlon to the scheduled four further full board rneetlng5. therÈ were Seven additlonÈl tonfÈrence calls with the fvll board. 811 with a Covid-specific agendz. with ten cotnrnltte2 rneetlngs, Includlng flve by the Flnance, Audit and Risk committee. Site visits were not possible from March onwards, ljut trustees recelved regular updates from the CEO. either weekly or monthly* to ensure that theywere fully informed and involved in all aspects of the response to the pandemic. How Acorn's Actlvities Deliver Public Benefit Acorn provldes accÉss(ble, hlEh qualltythildtare and Èarly Èduc&tlon In Its nurserles. out-ot-sthool clubs and lorestschoolsfor chlldren from 4 months to 11 £r£, In safe and supportive learnlnE environments, highly qualified and profe5Stonal practitioners nurture each chlld's social, emotional, and physical development, building their 5elf-confSdente ttnd lovÈ of learning and thereby preparlng them to take advantage of opportunities, responsibilities and experiences in later life,
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 TRUSTEES, REPORT Acorn alms to be soclally Inclus%ve and seeks to give oll chIldn hlgh quallty chlldcare regardless ol ba¢kEround. Acorn Is committed tg prowldln8 the 8overnment-funded entitlementto childcare and alm5 toensure that children attendingonlythe funded hours benefit from the full extent of the activities and resaurtès provided wlthln those sessions. without iny addltional tharBes. Acorn's fees are set at rates which are as affordable as possible without lÈopardisinE quality and aim to be below the fee rates at comp3r8ble private providÈrs. Places are also made avallable for the local authorlty and for children with additional needs. Acorn operates 8 cross-subsidy model, which monltors 2nd evaltJ3tes the financial vlabilityand the 50Ci31 imp8ctolea£h nurseryto ensure a bal3Jte across the group. Partnership wothing With children's centres, local authorities, schools external agÉncles Is a key feature of Acorn's succÈss supporting parents and carers, and in promDtlnB the earlyyears sector 3$ 4 career pathway for both young people and 3dult5 sÉÈklng a chanEe of career. Regsar vslts to rÈtirÉment and care homes also enrich the live5 01 elderly resldents in local comrnunitie5. ThÈ professlonal development of Acorn'5 childc3rÈ WorkffOr is a key part of the strategy lor m3intainlng hlgh quallty within the setilnES. Training prov1s1o and support are provldÈd for all practitioners, from apprentices up to those worklng towards higher level degrÈes, asa major focus In the strategy to continually imwove qttality. Pay scale5 &re improved annually, and Acorn's A£tlon Research Group is developing way5 to 5ppOrt rents, measure 51Klal impact and tontinually Improve childcare practice, The support for thÈ professional development of early years prartitloners extends beyond the Acorn workforce through ihe Atorr trainingdivision. Cour5e5coverln8 corosublectssuch as safe8uardingi inclusion and flrst ald are run alongside a rangeolwldÈr subjects, from foresl school leader tralnlng to experlentlzl plav. Forest schools and outdoor play and lea¥ning are of part1cular Importance In deliverlng public benefk to chlldren who would otherwise mlss out on the opportL*nitylo eng3Ee wth the natural world and benefit from the freedom, auttrnomy and sensory exrienceS of the outdoor envlronment, Se551ons are dellvered to £hildren attendlnE Acorn nurserle5 durlng funded hours at no addition31 charge, and durin¥ sihoDI holldays forest school session5 are offÉred to school age childre.n, Including manywith addlÈlongl needs. The trustee5 have had reg&rd io the Chaiity Commlsslon's guldavce on public beneflt. Achlevements and Performance in 2020 Early Y¢ar$ The Impact of the Cowd-lg wndeml¢ domlnated the year, dTastlcally affe¢tlnE Octupancy levels, our abllity to offer oUtf-sChotsI care and holiday plhyscheme5, and affectlng practlces In slgnlfttsntways. Key worker famlllÈs and those wlth chlldren deemed wulnerablÈ tontlnued to access early years provislon thToughottt the year, and although six nurseriesiÈmpor8rlly closed. some staff ajd children from those nurser5es were zble to contlnue to access Acorn provision 8t other site5. Home vlslts were suspended, as were the vlsits to care homes and other cornmunlty actEwltles, and for much of the year, forest school trlps were also suspended. Parents and t2rers were no longer encouraged to come Into the nursery, with handover5 taking place at the door. There were enormously cre4tivÈ and Imagtnative effort5 on the PaTt of pr3ctitlone¥s to malnt8in contact with chlldren who were unable to continue to attend nur5erles, Including messages, videos and iootn calls. Some of these were shared wldÈly, Includlne globally. S(xMe nurseries a150 lent out resources lo f8mllies and ta the local coMmnIty. Parents were very sUPPQrtive of all the add5tlonal hygiene rneasures place, and a150 financially supportive, durlng perlods when fees were charged on a voluntary b351s. Some of the nurserle5 Ih3t ¥emalnÈd open also accepied adéitlonal children from famllies whosÈ usual nurserles had closed. There was only one Ofsted inspection, at the end of February, in which our Sharnbrook nursery was judged Good throughout, The biggest evehtwasthat our long-planned nursery2t theYMCA In Central Milton Keyne5 finally opened In July2020, bringingthe number of places offered across the nurserles to 719. A socialty distanced openIg took place, attended by the fv18yor of Milton Keynès, atcompanled by his dauEhteT, who had attendÈd the flrst Acorn nursery sever31 year5 eartier. A research paper on the benefit5 01 hoyne vlsits wa5 presented at the 8ritlsh Early Chlldhood Educatlo# RÉsearch Ftssoclatlon conference in February. lust a few weeks before homÈ v5slts had io be iemporarlly suspended,
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 TRUSTEES, REPORT One of Atorn's pr8ctitloners2tthe Burton Latimer nurserywon Ihe Nursery M3nagementToday's Rislng Star award, the Kent5 Hlll nursèrywasshortlistd for NurseryWorld'sNurseryTeam of theyear as well asthe Managerbein8 shcrtli5ted forthe Nursery Manager of the Year. Forest Scheol 2020was a challen8ln8yÈÈr lorAcorn'sforest school provision as, despite the outdoor environment beingthe safest place forchildren to bÈ, thÈ Ctsvid-19 pandemic and associated lockdowns restrtcted nurserylschool trips in the local comrnunityi face-ta-face tralnlnB sessions, and any family sessions. This resulted in external forest school sessions and training courses for large part5 of the yeBr belng tancelled. Despite these challenges, the team adapted and made the most ol some of the opportunitie5 that the ye3r brought. such a5 slgnl1lcant IncreaslnÈ the uptake In sesslons for homeeducated £hildren. adapting the Level 3 tralning coursÈs so thÈt they incorporated some onllne learnlng elements, and opening a new holiday club èt the Cold Harbour Outdoor LearnlTrg Centre. ThÈ Cold Harbour hDliday club proved to be a covld-safe and very popular location for the outdoor holiday club, and one that wlll contlnue to remaln open on a permanent basis, running alongside the usu81 forest school hollday club. The Covid-19 pandemic a150 highlighted the importance ol each nursery hgvlnE their own qutlllled forest school leaders permanentlv based in the 5elting. Those nuwsertes with their own forest School leader5 were able ttr £ontln¢Je offerln8 forest school provislons o site throughout the year, even at the height ol thè pandÈmic, On the other hand. the restrlctions meatht that the few nurseries thèt dld not hzvetheir own forest school1e4ders, or that have morè IlmSted access to good outdoor spaces, struggled rooffer ¥e8ular foiest school provisions for their children. Looking ahead to 2021, the prlorlty Is therefore to focus forest school training opportunlties on those setlings without their own forest school leaders and ensurlng that all Acorn nursery chlldren get rÈgular2ccess to forest school sessions before they leave to go ta 5£hool. Tr¥lnlng CEntre arml Consu5tan¢v Llke many trainlng provlde15, the pat)demlc meant that Acorn had to adapt and make better use of technoFo8y to dellver external tr31nlng 3nd co#5ult#n¢y servicÈs. In partnershlp wlth an external trainer. Acorn adapted the range of safpguaTdin8 courses so that they could be dellvered oollne u51ng MlcrosoftTeams. The L3 Forest School quallfication was also adapted so that il could be delfvered partially online. Unlortunately, Some of thè more practlcal and creative early years courses were not able to take place in 2020, but these will be p(cked up agaln ID 2021 as restrictlon5 are Ilfted. Understandingthe challenge5 faclngihe Sector due to Covld-19, Acorn offered a speclal rate on remote consultancy service5 for ear vears prowders and childmiTrders, 5upporllng5ettlngsto re-open and operate drIng the Covld-19 p8ndemlc. In line with gowernment guidelines, The norm31 offp.rlngwa5 expandp.d to include other buslne5s Hreas such 25 health & safetyand understandlng the furlough s¢heme, aNt the supportfor other setting5wa5 very much appreclated, a5 thls feedback Shows.. Yhls has been u dlJllcult tlmeforus all andnobodyha5 everexperiencedonything Ilke It.. [BeckyJ hos helped us to keep the nursery open lor oll our key workers ond vulnerable children whilst ulso makyng sure we keep the stctff in the settlng sofr. Becky hos provlded guldance on how many children we can accept in G bubble, wh£Tt to do rf we hud a suspected c05e of Covld, whllst olso supportlng us with the. tgys we can curientty use ond the shurlng of new guidelines os they hovÉ been reltosed". Catering Wlth M2nyearly years settings stawngopen for chil(fren of keyworkers3d vulner3ble ¢hlldren throu8hout the year, Itwas Imperative that Acorn's catering service also continued to operate, providipg chi5dren with 3 he31thy and balanced dlet, and a sense of normality at £ time when 50 much wa5 changlng for them. Of the eight nur5erie5 the servi supplled meals to prior to Covid-19, four nurserles stayed open throughout th2year. The caterlnEte2m also ad2Pted thÈ normal deliveryprocess1n orderto accommodatea nlnth nursery at short notlce, after they lost their previous Supplier. Acorn Catering also supported Milton Xeynes Council to deliver their holiday hunger project in the 2020 stsmmer holldays. prep8rln8 640 s3ndwlches per week13.840totall which were distrlbuted to deprived farnilies as part Df a cold lunch bag fram fourfamllycentres across Milton Keynes. This project helped ensure that chlldren usually in retelpt of free school mÈaIsWe ableto access a healthy and filling lunch throughout the school summer holidays.
ACORN EARLYYEARS FOUNDATION Financial statements for the year ended 31 December 2020 TRUSTEES, REPORT Acorth's PEople Atom had a workforce of 306 at the end of 2020. Bn increase of 14 from the previou5 year, duÈ malnly to the Increased occupancy at Several of the nurserles and the opening of the new nursery at the YMCA. At the peak ol the nursery closures. 83% of the workforce were furloughed, and there were some rÈdundancles, due partly to the c05t-cutting measures In the central Offe, but also due to a dramatic decrease in occupancy it one nursery and to the permanent closure ol the out-of-sthool tlubs at Oakley Vale. For much of the year, however, m05t employees who wlshed to continue working were able to do 50, at least part-tlme, and critically vulnerable employee5 were ablè to rÈrniin on furlough. The flexl-lurlough scheme in particular helyed to offset the in¢rea5ed tost of staffln8 uring the pandemic, when the bul)Iile system reduced the ability to move staff withln and between 5eltnES. The central support team worked hard to support both worklng staff and those who had been furloughed, to ensure that employÈo wellbein8 remained a focus point during lockdowns, with regular remate contact and weekly email updates to 811 empbyee5. Several surveys were sent out to stsff, to gauge the su£tÈss of these, and to monltor employee wellbeing, and the result5 were verv encouraging. includin8 £omment5 like Yhe weekly updates from Kieran and are excellent, informative and amu5ing'; 'I've really found cumfort in the weekly upddtes, It's cheered me up no end some weÈks" and Yhe'leel, of the emails are veryfriendly and I feel Ilke I can get in contact if I have any worries about anything," Nur5ÈrlÈ$ 31s0 arganlsed theSr own quizzes and onliTre social events, uslne Zoom and WhatsApp. 84%of employeeswhocontinued worklngthrou8h knckdown felt that their health 8nd wellbeing rernaitsÈd hlgh, and 87% of those on furlovgh felt th8t Acorn had supported them well both thiough lockduwn and thelr phased return to work. Partlculgr efforts were made to work c105ely with ernployoes wlth disabllltles or health condltions. Including adaptin8 shifts where this Ènabled commutlng Soumeys to be made s3fer. In addltlon to weeklyvlrtual meetlngs wlth nurserymanagers, the employee forurn and several cornmlttees met durlng the year. u51ng Zoorn orTeams. These Included the Eco-committee, the Actlon ReseaFchgroup, and those foT Health and SafetyrÈpres&ntatlves, SEND ciI-OTdlnator5 and Dp518nated Safeguardlng Leads. The success ol these, 3nd of the cammttnlcatlons betwtsen rhe Central Support office tean) led to 3 realisation that vlrtual meetln8s will play a conlinuing role within the organlsatlon after the CovJd-19 pandemic, as it often proved ÈaslÈr to free en)ployees up for an hour or two, in5tezd of hzving to factor In travel tlmÈ for fÈte-to-face meetings. The5(Kl31 eventsof the year, and the annual staff cOnfenCe, had to be cancelled, whlch wa5 d15appolntlng, as these prov5devaluable opportunities for practitioner5 frorn different settln8S to netWOTk with each other. Recruitment contlnuÈd to be challÈngln& partlcularly In 8ttYactl#g qvallfied practitioneT5, and the Cowld-19 flnantlal prÉ5sures Ilmlted the progre55 towards Acorn becomlng a Llving Wage employer. The annually revised pay scale contlnued to ensure that qU3111ied. experienced practitioner5 are paid at least the equlvalentof the UK l.ivingWage. Acorn'£ rnmmitrnentta environmental Improvements also includes an empha51s on facllltatSng lotal employment where possible, in£ludlng allowlng employee5 to transfer to other Acorn nurseries when practicable. Reporting on Acom's progress In improving the gender balaTr of the workforte was paused In 2020, but 81though gender wy8ap reporting wa5 suspe[ed for the ypar. IhÈ work continues. and korn continue to ensure that falrand equal pay is implemented across the Acorn worklorcÈ. The trustees continue wilh the published aim that Acorn wÈll dellver thÈ UK Llvlng Wège to at least 5% more ernployeès each year, wlth 10(PA achleved by 2028. At 310ecember 2020 61% Df ernployees were pald èt leèst the UK LIng Wage. Traivin8 and ProlesslonaS Development Acorn conunued to support apprÈntlces 2nd other leamers throughout 2020, and of 22 3pprentl¢es In the year, 13 achleved thelr quallfi¢atlon. 11 new learnèrs bÈgan their journey. and. wh115t maxirnising the use of the apprenti¢eshlp lovy, Acorn contributed an addition3148% of the lewy contrlbutlons In employer top-up to make the shortfall. 2020 also Saw five ol Acorn's employees work towards higher level qualSlltatlons wlthin E8rly Years. A Skills matrix was Introduced for Acorn practitianers. to supplement personali5ed profpssloal development plans. and this also proved Useful ag a tool to be used wlthln sUpeI$l0n5. 19 Acorn praititionEr5 achleved an Internal promotion during the year. Three of the four planned training days went ahead, but these were largely online. A wlde range of online training courses werÈ madè avallable to the workforce, and many furloughed employees chosÈ to contlnue thelr professlonal development by Man8 use of those resource5 from horne, Relnvestment The d-19 pandemic cost-cutting resulted In a redurtitsn In the plans for capital expendilure on leasehold improvements, but e55entlal repairs, onEOlnE rede£wation and garden Improvement projects were colltinued, and because of the increased reliance on IT, rherewas some investrner¥t in upgrading Infrastwcture. both in terms of broadband connectlQns aNd1n cornputer hardware. Sotne
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 TRUSTEES, REPORT eDronmental measures were1mpiemented, intludlng upgrading dome5tlc 4ppllance5. and the internal appalntment of a part-tlme health and safety asslst2nt has resulted in Improvements to iTrternal 3uditing and the 5UPPOrtfor health and safety complSance across the organisètion. There wa5 a major financial investment In the newYMCA hrsery. of over £440,000, and a new shelterwas inst£llÉd at Cold Harbour, to improve the provision for the outdoor p13yscheme.The nursery at Burton latimei also had a newshelr and improvementsto thelr outdoor areH, Partially funded by fundr21slng actlvities. Social Impact Acorn Is working towards z vision of a more carln8 and connected 50tlety by putting children's wellbtlnE and devèlopment at the centre of everythin& by larmlng strong partnerships wlth families, by collabtsratlng and engaginE Wlth others in the community, and byen838lnE children with nature. This is only posslble because o*the passion, deditatlon ènd profe5sionallsm of Acorn ernployees, Ihe comtnitment to professional development acr055 the workfor, and the ethlc of tare that underpin5 the Acorn ethos. .. ParfnershSp . wlth famllles Chldrenengttged with nofvre AR£hllthenenoYfvIg. dknlnkng1Nnaro1. FI7&SrEWrtQdIh bytrus1ing. (om£mCnrQryrDtr2nSh45S Yfjlhskum. Acorn's impact model and ethlc ol care was never more important than In 2020 when our communitle5 were stmck by the covld-19 ndemlc. With the natlonal lockdown chÈnelng the Ilves of chlldren and families overnlght and forclng many parentslcarers out ol work or having to balance workwith childcare, Acorn's prioritylurned towards supporting the chlld¥en of keyworkers and vulnerable £hlldren, whilst a150 provlding remote support wlth home-le8rnlnE to all our other familles. During the flrst national lockdown when many nurseries were unable to remaln open. 11 out 0112 Acorn nurserles opened to chlldren of keyworkersorvulnerable chlldren forzt leastsome of the lockdown, whllst half of the nurseries remalned openthroughout, despite the financial challenges thls caused. Where nurseries c105ed. children of key workers or vulnÈrable chlldren were always offered a plate at an <e¢natlwe local settin& and employÈes were redeployed 50 that there was a famlliar face for any children that moved to a different settin& In total, Acorn cared foT 175 thlldren of keyworkers orvulnerable<hildren durln8 the first national lockdown. which was roughly 14% of the pre-pandemic occup3ncy. Vithout the nur5eiy5tsylng open nelther me nor my wile Iboth key workersl would hovÈ oone ttr woik. You ore a credlt to the country. So mony times the childcolre sectorisloJkedoverwhetherlt be poy, beneflts, ttpprecftotion orski115 tr(Tlnlng. Thls hus to be cutctly5t to chtsnge this. COVID hu5 mode It clear that without thjs keysector. £Tnd the importontpeople thot work wlthin It we a5 a country ure very stuckj We wlllJorever be IrJdebtÉd to youfor staying open over lockdown, rhe socFifices 10
ACORN EARLY YEARS FOUNDATION
Financial statements for the year ended 31 December 2020
TRUSTEES, REPORT
thot each oAyouTStoAf mude Jor children they look ofteishows the carlng ottitude they htsve. We cannotexpress our th(ynks
Ènoughfor ollyou done.-
In addition to staylng open forchildren of kÈy workers and vvlTherable children, AcDrn's staff teams tame together both individually in
their settings Ènd as a wider group to provide ongoing support for those chlldrÈn and famllies locked down at home. Home-learning
resource packs (such as handmade story sack51 were delivered to rnany dSsadv3nt8ged chlldren, vide05 of staff telllng storie5 and
singing songs were recorded, and actlvlty Ideas were posted via an app to Atorn families directly and to the wldÈr publlc viz socla1
media. The airn of thi5 Was to maint8in good lÈvèls of communication and to SUPPQrt parents wilh engaging chlldren at home. 2nd thus
supporting thÈlrwellbÈing and development. It was therelore reassuringto find out that 93% of parenlsltarers agreed thatAcorn had
supported the individual needs of theSr f4mlly well during lockdown (just 1% disagreed), and 94% 01 p3réntslcarer5 were happy with
the quallty of communlcatloj.
°We feqlly l(wed thut the nursery and the prtsctirioners ond even the chef h¢Fvé oll stoyecl in touch via vléeos rlnd plctures
whlle moklng wondÉrlul reSoUr510r our ¢hlldren to engage with. We reod and re-reod them regulorly and engoged with
mtsny ol them even rf we didn't monage to pjst back. We loved the idea olzoom yogts, ieodlng sessions. and the Ideo OA
tolklng to the resident5at the tore home. You hove developed a very rich creJtive pra£tite In the time olJ7andemicll"
Upon openlng to 811 nu¥sery chlldren in JUDE, 5ettlAg managers Spent tlmé lialslng wlth each f8mily to undÈrstand their Indlvidual
circumstantes and explainingthe méastsres In place at the settlng50 they could make an informed dpclslon bÈfore returning. A SUNey
followingthls demonstrated that over 98% of parents felt Acorn had 5ulllclent measures in place to pratect chlldren. families and staff
In the pandemic.
e've betj) Impressed wlth the omount of Infvrmatlon wee been provlded Gs thesltuation husprogressed. I thlnk YoUé
got the rlght bttlonce of measures. WE hovElrlends whose nurserles dldn't gts to the some levpl ond I don't thlnk we would
hove been golng to nursery IIAcorn hudn't tuken the steps thiYtIt hos.-
Communlty embeddedne5s was more of a challenge in 2020 due to covld-19 restrlctionx,. however, where possible, Acorn settlngs
strlved to support other people Hnd organisations in thp camrntsnlty. The out-of-school club at New Bradwell suppo¥ted the school to
provlde care for key worker chlldrÉn durinE the school holldays In Ihe flrst natsonal lockdown when thls additional responslhlllty had
been put on the school by the government. Several Acorn nurscrles a150 carried OUE wlndow vlslts at local care homes to provlde a
valuable oppoytunlty for IOCBI resldents and the nursery chlldren to engage wlth one another. at a time when opportunltles for
engagement were lower than ever.
In a domlnated by the pandemic, Acorn strlved to provlde cons15tency of indivlduallsed care and support to all our chilrtren and
families, regardless of their cir
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 TRUSTEES, REPORT The trustees would expressly likè to thank the famllle5 using Acom'5 servIs, for the depth of their 5UPPOrt 2nd loyalty. The cross- subsidy model contlnuÈd to work effectively thrO8Out the year, and the e5t3blished nurserie5 recovered quickly from the lockdown perlods. The new nurserlès, At Cold H8rbour and the YMCA In Central Milton Keynes, were affected more sèverety, although thesp are now perforrnlng well. The year io DÈcÈmber 2020 also Saw a sl£nlllcant drop income from the out-of-school clubs and the tTaininE centre. as these were severely affected bythe lockdown periods. prtnclple fundlng sou¥ce5 continued to be fees pald by families, including funded nursery educatlon places, with significant variatiorÈ in the proportion ol funded plates at each nursery. Social Investment The new nursery at theYMCA in Central Milion XeynÈs was financed with 8 loan of £380.000 from CharSt5es Ald Foundation, from thÈir CAF VenturÈsome devélopment fund. which wa5 drawn down In March 2020 and is now being ¥epaid. over a period of five years. Reserves Policy At 31 Dernber 2020 the ch8r¢ty had unrÈsrittÉd reserves of E385,178 12019.. £332,694) and cash t)alances of E354,31812019.. £75,704). The re5Èrves policy was reviewed In 2020, and again In February 2021, and although thÈ Intention was originallyto intrÈase the amount of minimum unencumbered cash re5erve5 from £75,000 to £IOO,000 it was agreed that the £75.000 should be continued until 4fter the Covld pandemic. The current iatlo15 also monltored, wlth an aim of 3chlÈvlnE a ratlo of 1.0 and to maintsin at least 0.5 as a mlnimum. Fundralslng Poli Only d very small proportlon of Acorn's Income is geMeratp.d fwom fundraising actlvltles. Acorn ha5 3 clear written policy for any fundralslng actlvliles carrlcd out In the organi54tlan. and the policy 2550 OLtlines the ethical conslderatlons for such act6vitie5. Any fundr315ing Income in ?.O?.O Is Occurately documented In the CoUnt5. Management ot Rlsks and Uncertainties Thetrustees recognlsethe exlstenceof rlsks to Acorn'ssphere ofopeiatlon5, partlcularly aftertheexperlence ofthe Covid-19 pandemlc In 2020. They understand the severlty and level of risks and their impact, and coiilident that SYStem5 are in plate to mltlgate and monltor areas ol identtliable r15k In flnancl81 and operadonal areas and areas whlch could result in reputatlonal Impact. A risk matrix is kept undèr constant review by the senlor leadershlp team and Is regular reviewed by the trustees. A rlsk register dentlfles the Major Tisks tts flna#dal. operational goveinance, environmentHI, Èxternal and regulation nd compliance areas. Thls works In conjunction with the rlsk matrlx to help the trustees e5tabli5h the 5everSty of risk and how to mltlgate them. The trustees receive reports at their meetings to monltor the financial and opÈr8tional poslilon of the char*ty and identify any exposure to rlsk. Alongside these two risk Management tools. AcorTE has a bu51ne5s contlnulty plan in place, whlch IdentlfiEs the major Incldents and Issues which could h?vÈ a substantlal Impacton the operation of the charlty,. these could range from a lar2e-stalÈ Incldent such as fire or flood, to reputatlon31 damage, to a £hlld safeguarding Issue. In comnion wlth the rlsk management t¢ols, thls Is kept under review. The r15k tnanagement process Was thorouthlyte5ted throughout the pandemlc 8nd the business contlnulty plan ha5 been updated to rèflect the successful exp2rlÈnce of remote working ad 5UPPOrt for 5ettln8s. Going Concern Throughout 2020 the trustees have received monthly reportlng on the impact of CovSd-19 on the finance5 of Acorn, and the 3Ctions rnanagetnent have taken to ensure it remalns a going concern. Cash flow forecasts were updated and regulayly reviewed by the Flnance,Attdlt and Riskcommittee, and partlcularlyln terms of the requlrementforfurther bDrrowlnB toensure finCIal 5USt21nablllty. S5gnlflc8nt work ha5 been ursdertaken to evaluate the financial and buslnÈss rlskfor 2021 and onwards, the f¢xuson cost tnanagement in 2020 has continued and business dÈvÈlopment plans have been arnended to a#tlclp3te and reflect instabillty in the recovery of accupancy levds. The trustees have rewewed these plansand are comfortable abouttheongolnellnancialviabilityolthe organisatlon. q2
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 TRUSTEES, REPORT Plans for Future Period5 An exclting opportunity to open J nur*ry and outdoor learning centre In the vi113ge of Etnberton. near Olney, was belng explored durlnE 2020 and it Is hoped that thi5 will open In the summer 012021. The are no currÈnt plans for further expansion after th1s project, as the priority wlll be to consolidate thp Einanci31 position of the organisation. Where opportunlties arise, these will contlnue to be eValated. Trustees Responsibility Statement The trustee5 (who are also dire£tors of Acorn Early Year5 FoundatloTr for the pvrp05e5 of £ompany lawl are responslble for prep3rlng thetru5tee5' Annual Reportand thefinantlal stat@mÈnts In accordance wlth applicable law and United Klngdom AccountlnE Standards (United Kingdotn Generally Actepted Accounting Practice). Company law requirès the trustees to prepare financial statemeDt5 for eath Ilnancial year, which give a true and falr view DI the state of affairsof the charitable companyand ofthe Incoming resources and appllc3tian of resourc25. Includln8 the income and eXpÈDd5tre. of the charitable comp8nyforthat peTicd. In preparln8 these financial statements, thÈ trustÈes are requlred to.. sdect sultable accountlng pollcle5 and then 8pplythem consistentlyi observe the methods 4nd prlnclples In the Charéties SORP., m3ke judgements and estimates that are reasonable and prudent,. state whethpr appllcable Accounting Standards have been followed, subject to any materlal departu¥es dlsclosed and explalnèd In the financla1 statement5,' prepare the flnanclal statements on the going concern basls vnless it 15 iTkppropri8te to presume that the cha¥itsble comp4nywlll conilnuc in operatlon. The trustees are iesponslble for keeplng tdequate accounting recordsthat disclose wlth rÈ3sonable accuracy at any tlmÈ the Ilnanclal position of the ch3ritable COTTrpany and enable them to ensure th&t the fln2nclal statements comply with the Comp3nlÈs Act 2006. They are 3150 re5ponslble for safeguardlng the asset5 01 the tharltable company and hence for taklng reasonable steps for the preventlon and detection of fr8ud and other irregularlties. In so far as the trustees are aware: there Is no relevant 8udit Inforrnatlon of whlth the charitable company's 3udltQT Is naware., and The trustees have taken all step5 thai they ought to have taken to m3ke them5efve5 aware of any relevant audÈt informatlon and io Èstgblish that the auditor is èware of that Inlormatlon. L>zte ILLfft JLJI Z021 13
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 INDEPENDENT AUDITOR'S REPORT Oplnlon We have audtted the ftnantlal statements of Acorn Early Years Foundation for the year ènded 31 Oecember 2020, which comprise the Statement of Flnancial ActNities, the Balallce Sheet, the Statement of Cash Flows and notes to the finallcial statements including a sumrnBry of signlficat)t accounting polKies. The inanci31 reportlng framework that has been applied in their preparatlon is applicable law Unlted KinEdom Accounting Standard5, IntludinB FRS 102 The Financlal RepoTting Standard applicable in the LSK and Republic of Ireland (United Kin8doYn Generally Accepted Actountin8 Practice). In our oplnlon the flnanclal statements.. give * true and lair vlew of the state of the ch3rltable company's affalrs as at 31 December 2020, and of its incomlng resour$ and application ol resourtes, Including its income and expenditure, for ye3rthen ended,, have been properly prepar in accordance with United KinEdam GeneT311y Accepted AccountlnE Pra£t5ce- and have been prep3red in actoid3nce with the requirements of the CornpaJies Act 2006. Basls for oplnlon We condutted our iudlt in accordance wfth Internatlon81 Stand3rd5 on AuditÉng IUKI IISAS IUKII and appllcable law. Our rÈsponslbilities under those Stsndards 2rÈ further descrlbed In the Audltor'5 re5pon51bllltles oY the audit of the linanclal statements section of our reporr. We are Independent of the chaTltable company In acto¥dance with the ethlcal rEqulrements that are relev4nt io our audlt of the financial st3teme.Dts in the LIK, Includln8 the fRC's Ethical Standard, and wo haveflfIl1ed ourotheT ethical respon51billtlesln accordance with these requlrements. We belleve thdt theauditevidence WÈ have obtsined Is 5ufAclent and zppropriate to provlde 2 basls for ouropinioTr. Concluslons relatingto golttg toAcern In audlting the fTnancial statement5, WÈ have concluded that the tru5teÈs' use of thÈ goln8 concern basls of accountlng In the preparatlon of the financial ststements Ss appropriate. Based or the work we have ptrrformed. we have not Identifted any materi31 uncertalntles re18tlng to events or conditions that, Individually orcollective, may castsignificant do4Jbt on the charltbblecompany's abllityto continue asa goitbg concern for a period of at least twelve months from when the financlal ststements ale authorlsed for Issue. Our responsibllities and thÉ rÈsponsibllltlÈs of the trustees with respect tts Kolng concern 8re described in the relevant se£tions of this reporL other Informatlon The other Information comprlses the information Included In the trustees annual repolt, other than the financial statement5 and our auditorfs report, thereon. ThÈ tfUStÈes are responsible forthe other informatlon ¢ont8lned wlthln the annual report. Our oplnion the flnanclal statements doe5 not toverthe other1nformation and, except to the extent othÉrwlse explicltly stated IA our reporl, we do not express 3ny Igrm of asstsrance conclusion thereon. Our responsibility Is to read the other nform8tion and, in doingso, con&derwheiherthe other information 15 mgterlally Intonslstent with the financlal statements r our knowledge obtained In the caurse of the audlt or otherwise appears to be mater¢ally mlsstated. If we identify such materlal inconsistencies or app2rent materlal misstatemeTrts, we are required to determlne whether this giv rise to È material misstatemeE)t In the financial statements themselve5. If, b85ed on the work WÈ have performed, we £orclude that there is a material misstalement of this other information, we are requiFed to report that fact. We have nothIn8 to report in this regard, 14
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 INDEPENDENT AUDITOR'S REPORT (continued) Oplnlons on other matters prescylbed bythe Companles Act 2006 In our opinlon. based on the work undertaken in the course of the audlt- the Information in The tfUStÈes' report lincorporatlng the stratpgic report and the directors, report) for the financial year for which the finan¢lal statements are prepared Is tansittent with the flnanclal statements- and the strateglc report and the dlrectors, report ha5 been prÈpared In attordance wlth èpplicable legal requlrements. Matters on whlth WÈ arè rUlted to report by exceptlon In the Ilght of our knowledge and understanding of the charltable company its envlronment obtained In thÈ covrse of the audit, we have not Identified rnateiial mlsstatements in the strateglc report 2nd the dlrectorg report. We have nothln8 to report In respect ol thÈ followlthg matters In relatton to which the Companles Act 2W6 requires v5 to report to you If,1n aur opinlon.. dequatE accounting records have not been kept. or returns adequate for our audlt have not been recelved from br8nches not vlslted by us,. or the financial Statements are not in agreement with the accountlng recDrds at)d returns., or certain disclosuTes of dlrÉrtors' remuneratlon speclfied by law are not made,. or we have not reIVed all the Informatlon and pxplanatlons we requlre for our audit., or The trustees were not entltled to prepare the flnanclal statements in a¢cordanto wlth the small companies, regime and dld not take adwantage of thesmall £ornpgnles' exemptions in prep4rlngthe dlrectors, report and from the requirement to prepare a strateglc report. Rèsponslbllltles ol trustees As eyplalned morefullylnThetru5tees' responsibllltlesstatement set outon page 13, Thetrustees Iwhoare alsothe dlrector5 of the charltable Company for the purposÈs of company lawl are respon51b¢e for the preptrètlon of the financial statements Ènd forbelng satlsfied thattheyglveat¥ue and fairview, andfor such inter931 control 45 The trusteesdeterrnine isnecessary ta enable the preparatlon of liTrancial ststemwts that ale flee froffi materlal misstaternpnt, whether due to fraud or errol. In preparln8theflnancial statemeDts, The trustees are responsible for assesslngthe tharltable companvs abilityto contlnue 353 golngcontern, dlsclosin& as appll¢ablÈ, Matiers related togolnE CoT and uslngthe golngconcern ba51sofaccountlng unless The Erts5tÉes elther Intend to liquid3tÉ the charltable company or to cease operatlons. or have no reallstic altern4tlvè but to do so. Audltor's re5ponslbllitie$for the 3udlt DIthE flnanclal statemehts Our objectivesare to obtain 3$onable assurance about whether the f(nanclal statements as a whole arÈfreÈfrom marerlal misstatement, whether due to fraud or error, and to issue an auditorfs report that indudes our opinlon. RÉasonable assurance is a hlgh level ol a55Utante but fs not a garanteeth8tan 2udlt conducted in accordance with ISA5 IUKI wlll always detect a material mi5Statetnent when it exists. Mi5StaternÈnts tan arise from fraud or erior and ire cYJn51dered material il. Indlvidu8lly or in the aggreEatÈ, they could re3son&bty be expedéd to Inlluence the economic dec15ions af u5er5 taken on the basis of these financial statements. 15
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 INDEPENDENT AUDITOR'S REPORT (continued) Irregularltles, includingfraud. are instances of nDn-compliance with laws and regulations. We design procEdures In Ilne with our responsibilities, outlined aVe. todeltMaIerLal misstatements in respectof Irregularities. including fraud. The specific procedures for thls eneaÉeMent and the extent to whlch these are capable of detettlnE Irr&gularities, including fraud Is detalled below.. Reviewing manu31 lournals for material or untssual tranctIonS Reviewing charity palicies for authorisation of payroll and bank payfflent processes Reviewing bathk Stements for mater131 or unusual transactions Rewewing accoUnng records for related party transactions otstslde the course ol buslness Considering if the charitable company has complled with all applitable laws and regulat10115 Because of the inheret limitation5 Df an audrc, there Is a rlskthatwe will notdetect all Irregularltles, includinE those leading to a materlal misstatement in tho flnanclal statements or non<ompliance wlth regulatlon. Thls rlsk incre35es the more that ompllance with z law or regvlatlon is removed from the events and transactlons reflected In the financlal statements as we wlll be less likely to become aware of instances of nDn-tomp118nce. The risk Is 8lso Brearer regarding Irregularfties occurring due to fraud rather than error, as fraud Involves Inter5tior¢al concealment, for8ery collusloJ, omlsslon, or mlsrepresentalion. A5 P3rt of an audit In ac£tsrdance with ISAS IUKI, we exerclse professional Judgment and malntain professlonal sceptlclsm throughout the audit. We also.. Identlfy ènd asse55 thÈ rlsks ol material rnlsstatementoF thefinanctal 5tate¢r@nts, whether due to f¥aud or error, de51En and perforrn audlt procedures responslve to those risks. and obtaln 6Jdlt evldence that is sufficient and approprlate to providp. a b3sls forouroplnlon.-Fhe risk of not dclccLlng a materi31 rpls51atement resultln8fiom fraudls hlgherthan for one resulting from error 2s fraud may involve colluslon, forgeryj Intentlonal omlsslons. mlsreprÈsentatlon5. or the override of Internal control. Obtai an understanding of Internal control relevant to the audlt In order to deslgn avdlt procedures that are approprlate In the circumstances, but not forthe purpose of expresslng an oplnion on the elfectlveness of the charithble company's Internal control. Evèluate the appropri3tene5s of Èteountlng policies used and the reasonableness of arcountlng estlmate5 and re12ted dixlo5yre5 made by The trustees. Conclude on the appropr12teness of The trustee5' USÈ of the goin8 concern b3s15 of accountlng and. based on the audit Qdence obta5ned. whethera material uncertaintyexists related to eventsor condltlons that may£ast signiflcantdoubt onthe charftable company's abllltyto continue a5 a golng concem. If we concludethat a material uncerteinty exlsts. we are required to draw ittentlon In our auditorfs rÈporr to the related disclosures the flnanclal statements or, If such dlscltssures are in3dequate, to modlfy our opinion. Our concluslons are based on the audlt ewdence obtsinÉd up to the date of our auditor's report. However, future events or tondltlor*s May c3use the charltable cornpany to cease to contlnue as 8 going concern. Evaluate the overall presentatlon, structure and content ol the fit)ancial statements, including the dlsdosures, and whether the ftnantlal statements iepresent the underlying transactions and event5 in a manner that achieves lalr pre5entatioD. We communltate wlth those charged with governance regardin& 3mong othtrr matters, the plan#ed scope and timlngofthe audit and 51gnlftc8nt 8udlt flndlngs, includlng any signifKant dÉllclÈntiÈs In Internal control thht we Identlfy during ouraudit. 16
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020
INDEPENDENT AUDITOR'S REPORT {continued)
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed.
Steve Robinson FCA
26 July 2021
Senior Statutory Auditor
For and on behalf of Mercer & Hole Chartered Accountants and Statutory Auditors Silbury Court 420 Silbury Boulevard Central Milton Keynes MK9 2AF
17
ACORN EARLYYEARS FOUNDATION Financial statements for the year ended 31 December 2020 STATEMENT OF FINANCIAL ACTIVITIES {INCLUDING INCOME AND EXPENDITURE ACCOUNT) Unrestrlcted Funds Re5trlcled Funds Total 2020 Total 2019 Noto Income and Expenditure INCOME.. Donations and legacies 7,065 200 7.265 7,097 Income from charltabSe activities 6.934,409 33.385 6,g67.794 6,895,998 Investment income 157 157 154 Total Incom6 6941631 6975216 6 903.249 EXPENDITURE: Expenditur8 on charftable actlvilies 6.889,147 37.691 6,926.838 6,817.552 Total Expendlture 6,889,147 37,691 6.926,838 6.817,552 N81 Income and net movement In funds for the yaar 52,484 14,1061 48,378 85,697 RèconeS1iatlon of funds Total funds brought forward 332,694 8,926 341,620 255,923 Total ftsnd8 carrled foNard 385,178 4.820 389,998 341,620 The statement offinandal acliwties Include8 all galns and losses re¢ognlsed In the year. All Income and expenditu dertve from Continued activities. The accompanying accounting policios and notes form an int8gral part of the financial statements. The 2019 comparatlvè Indudes both lgslricled and unreslriet6d fun(5s, a breakdown of Ihe comparatives ¢an be found in note 22 to these financial $tat8m8nts. 18
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 BALANCE SHEET Note 2020 2019 Flxed Assets Int8nglble assets Tanglblè assèts 274,943 754,43Q 1,029,373 321,848 362,442 684,290 12 Current As8et8 Stocks Dèbtors Cash al bank and In hand Total Current Assets 6,057 123,549 354,318 483,924 11,4 131,708 75,704 219,316 13 Creditors.. Amounis falling due withill on9 year 14 1849,0731 1561,9861 Net Current Llabllltles (365,1491 1342,67Jl Total Assets less Current Ll8blllll8S 864,224 341,620 Credltors: Amounts falling due after oti8 yèar 15 1274,2261 Net Assets 389,gg8 341.620 Thè funds of the charlty Restricted Funds Unr&strict8d Funds Total Charity Funds 18 18 18 4,820 385,178 389,998 8.926 332.694 341,620 Approved by the Board of Trustee8 on TYust88 Company number.. 07703801 19
ACORN EARLY YEARS FOUNDATION Financial statement5 for the year ended 31 December 2020 STATEMENT OF CASH FLOWS Note 2020 2019 Not cash used in operating actlvltles 342,235 259,210 Cash flows from Inv8Sting activities Interest income Purchase of tanoible fixed assets Purchasa of Intangible fixed assets 1509.2091 {228,7921 Net eash usèd In Inv&sting activities 1509,209 1228,7921 Cash flow5 from flnaftelng actlvltles Investm8nt in¢x)me Proceeds from borrowings Rep3yment of borrowings Inter8St paid 157 480,000 12af,5931 18,9761 154 Net ¢•$h Irom flnanclng actlvltles 445,588 154 Increasg in cash and cash equlva18nts In the year 278,614 30.572 G8sh and Cash equivalents at the beglnning of the year 75.704 45,132 Cash and cash •qulval•nts at th6 and of the year 354,318 75,704 Analy818 of changès In nèt dabt l January 2020 Cash flows Inter6St charges 31 Decemb 2020 Cash al bank and in hand 75,704 75,704 278 614 278,614 354.318 354.318 Borrowing8 exdu(fing OV8rdrafts 1454,4071 18.9761 1463.383) 75,704 175,793 109,065 20
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 1. Accounting Polici88 The principal accounting policies adopted, ludoemenls and key sources of eslimalion un¢èrtalnty In the preparation of the flnancial slatem¢nts arè set out below. These policies have botsn ¢onslstenlly applled lo all years pr8sent8d unl8ss olhenthse staled. 81 Basis of preparBtton A¢fi Early Years Foundation Is a company lirniled by gLFarant88 roulstered in England and Wales . In the event of thè Charity being wound up, the liability in raspecl ol the guarantee is limited to £10 per mamber of the Charity. The addre35 Of the reglslered office is given in the charity Informatlon on page 3 01 these financial slatemenls. Th8 nature ol the charity's tsperations and priniypal actwity Is the provlslon of childcare in nursori98, out of school clubs and for8sI schools. The financial slalem8nls hav8 been prepared in accordance with Accounting and Reporting by Charitles= Slal8menl of Ro¢ommended Pracllce applicable lo charit18s preparlTrg th8lr 8oeoLJnis in accordance with the Financlal Rèporling Standard applicablg In th8 UK and Republic of Ire1£ind issued in Odob8r 2019. t Financial Rewrting Standard applicable in the Unliad Klngdom and RepublK of Ireland IFRS 1021. the Charities Act 2011, the C()mpanl$s Act 2006 and UK Generally Ac¢ept8d Accounllng Practk8. Acorn Early Years Foundallon m88ts the deflnltlon of a publlc benefit entity under FRS 102. Assets and liabilities are inilialty recoonlsed at historical Costor Irdnsacllon value unless olhemse slated In the relevant accounting p(Aicy notes. The financial slat(4ments are prepared on a going concem basis vnder th& hlstorleal cost convention, modllied lo indude certaln items al fair valuc. The financial gtatamenls are presented in slerllng whS¢h is the functional curiency of the Charlly and rounded to the nearest £. bl Preparation of the accounts on 8 golng concem basls At Ihts tim¢ ol fjpprovlng the financSal statements, the Trus188s h8vÈ a r68son8ble expectation, after taking Inlo account the Impact of COVID-19 on thè Charity. that the Charily has adequato ro&ourS lo contlnue In operational &xist8nce lor tho foreseeable fLlture. Thus. the Trustees ntinUe lo adopl tho golng concern basls ol accounting in prep3riru th8 finanelal statements. cl Income Income is recognised when th8 Charity has enttllernenl to Ihe funds. any perfomants condltlons aitaehed to tho items of incom8 have b86n mel, it is probable that the Income will be rgceÉved, and the amount can be measurod rellably. Income from govemment and other giants, whelher'capital, grants or'revenue, grants. is recognised when th6 Charlly has entitlement lo the fund8, any performance nditionS aliached lo the grants hav8 been mel, It Is probable thal the Income wlll reiVed and th8 amount can be mèasured reliably and Is not deferred. Fee Income Is allocated to the rnonth to whlch it relates, and the free 8nlillemelll funding is allocated on the same basls, wilh policies in placo lo ensure entiltement Is verflied prior to haadcount datès. d) Interest receivablo Interest on funds h81d on d8posiI Is Included when receivable and the amount can measured reliably by th8 Charity., this Is nomally upon notification of the interest paid or payable by thé Bank. 21
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 1. Accounting Pollclès leontinuedl el FuDd accounting Unrestricl8d funds are availabl8 to spand on activities that further ally of the purposes of the Charity. Designated funds are unreslriclad funds of ihe Charity whlch the trustees have docided at thelr discretion to sel oside to use for a speCC purpose. R88lri¢lgd funds are donations which the d(M)or has speafied are lo b¢ solety us8d for particular areas of the Chatlty's work or for spèciflc projects being und8rt8kèn by the Charity. Exp8nditure Expendibjre is recognised oncÉ there is a legal or constrLFCtlvè obligation to make a payment lo a third party, it is probable that selllement will be required, and thè amount of th8 obligation c&n b6 measured reliably. Exp8nditEJre is dassified und8rth8 following actimty headings.. 1. Cost of raising funds compr¢ses the costs ol activities outskje the r8gular operation of th8 nurseri85, forest schools, catering and Iraininq d8partment. 2. ExpgndiluFe on chariiaNe acllvities comprtSES the costs of cx)mm6rcial tradiw indudino the running ol the nltrsertes and their assocl8t8d <x)sls. Irrecoverable VAT Is eharged as a cost against the activity for whlch thè expenditure was incurred. gl Governance costs Govornance eosts are those funclions Ihal asslst tha strateolc work of the Charity but do nol dl¥ecl undertake charilable activities. These costs have been alloc£iled to expendllure on oha¥stable activities. Governance costs Are set out in note 7. h) Employée b8fits The (x)sts of short-lemi employ0¢ boneflts are recognlsed as a liablllty and an expansa, unless those costs are required to be recogni$8d as pèrt of the cost of slo¢k or fixed assets. The of 8t)y unused holiday entluement is recognised In the perlod in which the employe8's services are receivgd. TeTminatSon benefits ar8 rèeognlsed immediately as an expense wh8n the Charlly Is d8TWnStrably comMtted to terminat8 th6 employfftent of an ernploya6 or to provid8 lerminatK)n beneflts. il Operaung leases Rentals opplicable lo operating 18898s where substsnlially all thg bgnefits and risks ol ownershlp remain wlh the lessor are charged lo the slalemenl ol financial actlwties on a slrai9ht4ine basls. 11 Flnanca leases Assets hekl under hire purchase agreements ar¢ ¢8pllalised and disclos8d under tangible fixed a5t5 al theirfairvalue. The capital element of the future payments is treated as 8 Ilabllily and th8 int8rest Is charged to Ihe slalement of financial activit18s on a straighl-line basis. 22
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 Decetnber 2020 NOTES TO THE FINANCIAL STATEMENTS q. Accounting Pollaes Iconttnuedl k) Tangible fixed assgts Indwidual fix8d assets ar8 capitalis8d gt cost and ar8 d8pr8Cl8t8d ov8r th8lr us8fiJl ecO0m1C livés on a straighl-lin8 ba3is as follows.. Asset Category Annual rate L8as8hold Improv8mgnts Ofli¢g Equiprnenl Fixtures and Fittings Motor Vehicles Play Equiprn8nt Low8r o110QA of cost and léngth of le8S8 20tsh . 33.3°/o of ¢o$l 20% - 25°/o of cosl 20Vo ol cosl 20% 01 cost l) IntrIble fixed 8s3ets Intsngib18 a8s8ts acqvir8d $8parat81y from a business 8r8 recognised al cost 8nd ar8 8ubsequenUy measured al cost less aecumulated amortisation and aecumulated impaimient losses. Intangible assets acqLJired on business combinations are ¥e¢ogni.%ed separately frrjm gncjdwill at thp acquisilicjn dat? il the fair valu8 can b8 measured reliably. All intangible fixed assets ar8 omorti86d on a slraighl-line basls over the 8slimat8d 8conomlc Ilf8 of 10 y8ars. ml Stook Stock Is Includgd al the lower of cost or not reali5abl8 valve. Donatsd i19ms of slo¢k 8r8 re¢ognisèd 81 f81r valu8 which is Ihe 8mounl the Charity would h8V8 b88n willing to pay for the items on the op8n market. n) Debtors Trdde and other debtors ar8 recognlsed al the settl8menl amount due 8fter any Ir8d¢ discoutsl offertsé. Prepayin8ntS 8re valued al the amount pr8pai(5 rE81 of any Ir8d8 dlscounts du8. ol Cash at bank and in hand Cash al bsnk and cash In hand Includes cash and short term hlghly Ilquld Investments th a short maturity of three months or less frotn the date of acqui5111on or openlng ol the deposil or slmllar iiccount. p) Crgdilors and provisions Credltors and provi%ions are recojnised where the Charity has a present oblallOn resulting from a past evgnl that will probably result in tho tiansfer of fund8 to a third party and the amount due to se(tle the obligallon eAn be m6asurèd oy 8sUmated *8llably. Creditors 8nd provislons are normally reeognlsed at thelr 581llemenl amounl after allOll9 lor any trade dlscounts due. q) Financial instruments The Chatity only has financial assets and financial Ilabilitl8s ol a kind that qualify as basic financial instr4Jments. Basic finaxclal irbstruments are Inilially recognlsed at transactlon value and subsequently measured al their 8ettl8menl value with the exception of bank loans which are Subsequently measured al amortisad cost using th8 8ff8cIN8 Interest m8thod. rl Pension Costs The Charity operates a defined contribution pension schem8 for employees. The assels of the scherne are held separalely from those of the Chaiity. Th8 annual contributions payable are charged to the Statement of Financl81 Activlbès. 23
ACORN EARLY YEARS FOUNDATION Flnancial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS rl P&nsion costs {continu8dl The Charlty is also part of the Bucks CC LGPS whlch Is a defin8d benefit schemo. Th8 Charfty has two employ8e8 In this scheme who work at Acorn at Weslcroft. Bucks CC has confirmed that when the Charity look over these nurser8, th6 portion ol the LGPS r818llno to il was transferred at no deflUll0 surplus. As Ihere is no deficit, a valuatlon has not be8n obtalned under FRS102 section 28. The paymenis havg be8n expensed in th8 same way as th81 of defined contribution schgmè paymenls. sl Taxatlon The charity is an oxempl charitywilhin the meaning of schedule 3of tha Charities Act 2011 and Is considered lo pass the tests sat wt in Paragraph 1 Schedule 6 Finantte Act 2010 and Iherelore il meeis the definition of a chBritable company UK ¢o¥poralion tax pu¥poses. 2. Legal st8tus of the Charity The Trustlg a Company Ilmlted by guarantee and has no share capltal. In the event of th8 Charfty being wnd up, the li8bility in resp8ct of the guarantee Is 1lmlt8d to £10 per m8mb8rof the Charity. 3. Inceme eamed from donations and legacies Unrestrlcted Fund8 Restrlcted Funds Total 2020 Total 2019 Donallons 7,065 200 7.265 7,097 7,065 2CIO 7.265 7,097 In accordance with FRS 102 and the Charfes SORP IFRS 102). the econ(>mlc eontrlbution of g6n8r81 volunteers is not reeognised in the accounts. 24
ACORN EARLYYEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 4. Income from charltable aclivities Unrtstrlcted Funds Restrlcted Funds Total 2020 Total 2019 Childcate Income 5,913.287 33,385 5,946.672 6.691.096 Tralning ¢oiirs8S 22,578 22,578 29,808 Forest school aclivi1188 24,034 24,034 53,907 C8t8rfno Income 80,628 80,268 98.815 Consultancy Income 2.810 2,810 10.307 JRS grant income 878,179 878.179 Other incomè 12,893 12.893 12,065 6.934,409 33,385 6,967,794 6,895,998 Local authority grants totalling £1.770,131 12019: £1,656.6251 reIved relattss to the 2 year old off8r and th6 National Education Fund for all 3-4 y8ar olds. Restrleted local aijthorily grants of£33.385 (2019: £43,683) r&la18 to daprlvetion fvndinu, indu$lon and dlsability aceAss fundiThJ grants. Further infoEmatlon on reslri¢ted tunds can be found In note 18. 5. Investment Income compris8s bank Interèst income. 25
ACORN EARLY YEAR5 FOUNDATION Financial statements for the year ended 310ecember 2020 NOTES TO THE FINANCIAL STATEMENTS e. Analysls tsf exponditur8 on charitable activities Unrestrl¢ted Funds Restrlcted Funds Total 2020 Total 2019 ChildCa costs 5,711,739 37,691 5,749,430 5,622,585 Training course w8ts 37,236 37.236 92.530 Caierfng costs 122,137 122,137 139,465 For8sI school aclivilies costs 86,646 86,646 79,355 Prop8rty and admini81r8tion 897,307 897,307 843,919 Accountancy fe6S 1.250 1,250 2,090 Audlloffs remuneration 6,250 6,250 6.25Q Legal and prof8sslonal fees 15,014 15.014 21,462 Otherfin8nel81 costs 11.568 11,568 9,896 .889.147 37,691 6,926.838 6,817.552 Nat Income l (expondllurel for the year fhls Is stated after eharglng.. 2020 2019 D8preclatlon 117,221 93,622 Amortl88llon 46,905 48,082 Operaling1oa$e paymenls 357.170 379,773 Auditors remuneration,. Audit f8èS 6,250 6,250 Accountancy services 1,250 2.090 26
ACORN EARLY YEARS FOUNDATION Flnancial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS Net income I (expenditure} for Ihe year Icontlnuedl Analysls of governance cos 2020 2019 AL¢dlt fees 6,250 6,250 Trustees expenses 207 27 Consultancy fees 2,298 11,695 8.755 17,972 8. Analysis of st8ff cosls, Trustee rernuneralion and exptynses, and the cost of k8y management Porsonnel 2020 2019 Salaries and wag85 4,717,734 4,498,134 Soclal security costs 303,246 287,443 Pensk>n eosts 210.695 181,399 5,231,675 4,966,776 One empk)ye8 had employee ben8ftts in excess of £60.000, wlth total employee benefits excluding employer penqion costs falling wlthin the band of £90,000 10 £100,000 12019.. 1 employee falling within the band of £90,000 lo f100.0(X)l. Pensloll costs are allocaleil to actlvlties in proportion to the rel<iled slaffing Costs Incurred and arè wholly charged to uniestrlcted ftjnds. Th8 Charity Trustees wore not pald or received any other benefits from employment wth the Ch8rily In the yoar 12019.. £nlll. One trustee was relmbursod expenses lor travel lo trustee meetings durlng the yearof £20712019.. £271- The amount of con5ullancy fees paid lo trustees in the year was £nil12019'. £729). The key managem8nl personnel of Ihg Charity comprise th8 trustees, who recoive no remuneration. the Chief Executiv8 Offieer. and the senior leadership team. The lot81 employee b8n8fit8 of key management personnel ol the Charlty were £31O,11712019'. £309,938). 27
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 9. Staff number8 The average moF4thly number of persons Ilncluding directors) employ8d by the Charity durlnu the year vras as ftAIows= 2020 2019 Numb8r Nurnlxr Tots1 stafl 308 285 308 285 10. Intangible fixed assets Goodwill Cost As at 01 January 2020 Additsons Disposals As at 31 nec8mb8r 2020 470,732 470,732 Amortlsation As at 01 January 2020 Charge lor tho ycar Amortisation on disposals A8 al 31 December 2020 148,884 46.9)5 195,789 Net book value As at 31 December 2020 As at 31 D8eember 2019 274,943 321,848 28
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 12. Tanglblo fix&d assets Leasehold Offlce Improvements Equlpmènt Flxlures Motor Vghicle5 Play Equ5pment Total Flttings Cost As at 01 January 2020 Addilions Clisposals As at 31 December 2020 353,971 422,285 68,501 3.136 168.797 75.717 3(Tr,98J 64.708 8,071 686.966 509,209 776,256 71,637 244,514 30.989 72,779 1,196,175 Depreciation As al 01 January 2020 Ch8rge for thè year On dlsposals As at 31 Dec8rnber 2020 91,301 78,943 66,044 125,855 1,072 22,228 13,512 3.996 27,812 10,982 324.524 117.221 170,244 67,116 148,083 17,508 38.794 441,745 Net book value As at 31 December 2020 As at 31 Dmber 2019 606.012 262.670 4,521 2,457 96,431 42,942 13.481 17,477 33,985 36,896 754,430 362.442 13. Debtors 2020 2019 Trade debtor8 19,791 21,912 Other d8btors 30,738 22.638 Pr8paymènts 73,020 87.158 123,549 131,708 29
ACORN EARLY YEARS FOUNDATION Financial statemet)ts for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 14. Creditors.. amounls falling due thIn one y8ar 2020 2019 Bank loan 80,181 Other loans 100,000 Trade creditors 73,378 134,805 Taxation and social security 67,055 67,111 Other creditors 493,102 329,004 AccFU8Is 35.357 31,086 849,073 561.986 Acom EarlyY8ars Foundatlon operalos a defined contribuiion pension seheme for all eliqible staff. Outgtanding contributions awaltlng payment at the 31 December 2020 were £35,12512019.- £30,505). In 2020 the charlly borrowed £380,000 from The Char5lies A4d Foundallon Bank plc. This108n is secured wlth a flx8d and floating charge ovor all the Charity's 3ssets and repayatAe over four yèars from September 2020 al an Interest ralp of 6.50/0 above the base rale, after a six month capital and repayment hollday. At 31 December 2020 the loan balance outstanding is £354,4Q712019.' nill. In 2020 tho charty rrowed £1 DO,000 through the Govemmenl's Resi1lÈnce and Recovery Loan Fund. part of Ihp Coronavirus Business Intcriuption Scheme. This loall carries a OY¢ In(erest if r8pald prlor to June 2021 after which the Interest rate is 6.5%. The loan ts not secur8d. 15. Creditors.. amounts falllng d4Je after one year 2020 2019 Bank Loa 274,226 274,226 30
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 16. Dsferted Income Included thIn other credltors are balances relating tr) deferred income. Deferred incom8 comprise f8es and grant income receipts related to flnBneAal year 2020. 2020 2019 Balance as at 1 January 2020 277.702 210,688 Amounts released to Income earn&d from charltable activlties 1277,7021 1210.é881 deferred IN yegr 439,479 277,7(F2 Balance 85 at 31 December 2020 439.479 277,702 17. Commitments under operating lea88S As al 31 December 2020 thè Charlty had annual COmTnllments under non-¢aneellable operallng18ases as set out b¢low'. 2020 2019 Prop•rty lèas•s oth&Y operallng loases Property leases Other operating le8SèS Total Total Amounts payable wilhln 1 year 315.126 29,150 344,276 323.754 25,487 349,241 Amounts payable between 2 10 5 yeaTS 876,002 31,051 907.053 928,763 34,079 962.842 Amounts pay¥bJe after 5 years 546,417 546,617 773,710 773,710 1737,545 1797.948 2 026 227 59,566 2.085.793 In addltlon to the commltsnents under operallng 168ses shown above, the Charlty has In place an operating lease commltmenl for all amount of £13,200 perannum12019'. £13,200) per annum with no specllied end dats. 31
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 18. Analysls of ch8rliable lund$ Analysis of mov8ments in unrestricted funds Balancè at Balance at 1 J#nuary2020 Income Expenditure 31 Decembar 2020 General funds 385.178 332,694 6.941,631 16,889,147) DesvJnalttd funds Totsl 332.694 6,941.631 16.889.147) 385.178 Analysi8 of mov¢ments In unr¢strlcled funds - prèvlous year Balance 8t Balance at 1 January 2019 Income Expendlture 31 Decembar 2019 General funds 255.308 6,858.616 16,781,230) 332,694 D88ign8ted funds Total 255,308 6,858,616 16.781.230) 332,694 Name of unreslrlct8d fund Descriptlon, nature and purposes of the fund General fund Thtt'free reserves. to cover normal fluctuation8 of working capllal. Designated fund Fund8 set aside by the Trust888 for a specific purpose. There are n designated funds during th8 year. Aft8r the year end the Truste88 agreed to designal8 £100.000 of the unr9StII8d funds to fit out the new nUfS8ry In Emberton. 32
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 18. Analysls of char¢tablg funds Icontlnuedl Analysis of movements In restrictèd funds Balan¢¢ at Balance al 31 Dècèmber 202a 1 January 2020 Income Exp6ndlture MKC Jubllee Wo(xl d8prlv8tlon lunding Enloy B8n8fi18 8h6nl&y donations DAF funding Inclusk)n grants 7.797 11,123 114.3001 4,620 200 200 1,129 1.230 21,032 12,3591 121,0321 Total 8,926 137,691} 4,82Q Analysls of movements r8Strlct•d funds - prevlous year Balance at Balancè at 31 December 2019 1 January 2019 Incomè Expenditure MKC Jubilee Wood deprivation funding Enloy Benefits Sh8hley donations Santander 0Covry Day DAF funding Inclusiot) grants 11,549 13,7521 17001 12501 13.178) 128.4441 7,797 700 250 615 3,690 28.444 1,129 Total 615 44.633 136.3221 8,926 Name of restrlcted fund MKC JLJbllee Wood D8privation Fundin9 Des¢Ylptlon, nature and purposas of the fund Deprivation funding Is based on th8 postcodes of children contalned wilhill headcounl dats for Nursery Education Funding. Funding has been used to provlde inc188S8d learning opportuniiies and to encourag8 achlevemenl enhancing indoor and ouldoor1eaTning. Enjoy Benefits Shen18y Donations The purpos& of the lund was to help develop the outdoor and 88nsory areas of Sh8nley Nursery. S8nlander Discovery Day Santand8r pmvSded funds and volunteers lo develop tho outdwr and sen80ry a¥eas of the Shenley Nursery. DAF Funding The ¢har4ly reeelved Disabllity A¢cess Funding in th8 year for 6 children. 33
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 DecembÈr 2020 NOTES TO THE FINANCIAL STATEMENTS Incluslon Grants Fundlng provided by Ioc81 Government in order to fund 1..1 slaffing for children wllh additional n$eds. During the year such fundlng was r8celved to provide addilional staffing for Thne chlldren. 19. Analysis of nel assets between lunds Analysis of net asset movements between funds Flxed Assots Net Curr8nt Liabillties Total 2020 Total 2019 Restricted funds 4,820 4,820 8,926 General unrèstrioted funds 1,029,373 1644,1951 a.178 332,694 1,029,373 1639,3751 389,998 341,620 Analysls of net asset movements batweén funds . prevloLES year Fixèd Assets N8t Current Llabllltles Total 201g Totsl 2018 Restrfcted funds 8,926 8,926 615 General unrèstrfcted funds 684,290 1351,5981 332,694 255,308 684,290 {842,6701 341.62Q 255,923
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 20. Reconcllialion of net movement in funds lo net cash flow fr(w opèratlng activities 202a 2019 Net movement in lunds 48.378 85.697 Add back depreciation ch8rge 117,221 93,622 Add back amort[satn cha¥ge 46,905 48.082 Deduct bank Interest received 11571 11541 Add back loan intere$l paid 8,976 Profit on dlsposal of fixed assets 2,295 Decraase l (Inueasel In stock 5.847 {2.5741 Decrease l [In¢réase) in deblors 8,160 122,2091 Increase In creditors lo6,5 54,451 342.235 259,210 21. Related party transacuons Rglmbur5ements lo trusteès for travel expenses aTe dlscthed In note 8, And trustees wllh children attending Aoom seitinos pald full fees. Aeorn Nursery Properties Limited IANP), the landlord for ol the nursery buildings, Is a rolated party as the CEO (key management personnel) is the majority shareholder In ANP. ANP charged rént to the charlly of £51,75012019 £69,0(K)l and waived the renl for both bulldlngs for three month5 during the Covld p2nderniG. The d)arity charged ANP £600 for book-keepino 35
ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 22. Cornparatpia Statement of Finantxal Activitie8 Unrestricted Funds Restricted Funds Total 2019 Incorne and Expenditure INCOME.. Donations and18uades 6,147 950 7,097 Income from charitable 9CtMti8S 6,854,315 43,583 6,895.998 Inv8stmenl income 154 154 Total Income 6,858,616 44.633 6.g03.249 EXPENDITURE: Expendltur8 eh8rilable aCtlIseS 6,781.23Q 36.322 6.817,552 Total Exp8nditure 6,781.230 36,322 6,817,552 Not incomèllexpgndlturel and n•t movement funds for the year 77,386 8,311 85.697 Rèconelllatlon of funds Total funds brotsght forward 255,308 615 255,923 Total funds carrled fOard 332,694 8.926 341,620 36