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 Fina￿18* 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 a￿lated 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 b￿Orne 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, out￿f-sthOOl clubs and forest schools,. WorklnÉ to ensure th8t high quality childcare Isavallablètochildren and famllles regardless of means, race, di￿bilIty* 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 prIo￿tISeS 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 suppOrt￿e, 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 incI￿sEVe 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 Mar￿eernent, 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 chIld￿n 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. Reg￿sar v*slts 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 5￿ppOrt ￿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 ex￿rienceS 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 oUt￿f-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 coMm￿nIty. 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 openI￿g 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 d￿rIng 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 keyworkers3￿d 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 Off￿e, 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 5elt*nES. 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 cOnfe￿nCe, 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 LI￿ng 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 profpsslo*al development plans. and this also proved Useful ag a tool to be used wlthln sUpe￿I$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 Ma￿n8 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 eD￿ronmental 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 h￿rsery. 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 newshel￿r 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£hllthenen￿￿oYfvIg. dknlnkng1Nna￿ro1. FI￿￿7￿&S￿rE￿WrtQd￿Ih bytrus1ing. (om￿£mCnrQryr￿Dtr2nSh45S 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 orvulnerabled transltlonlng lo a m3iTrstrearn schoo1 wlth the rest ol h15 peergroup. Looklng ahe4d to 2021. Acorn's ethos and Impact model will continue to underpln the org8nisation'5 aCtivitie5, the key oblective5 outlined behind the model. some of which weré hlndered throughout 2020, wtll on¢È agaln be l)rought to the farefront of operating In the'aew ROTmal'. Financial Review The origlnal pre-pandernlc projections for 2020, tsklng into account the r￿eNtlY op2ned nursery3t Cold Harbour, and the new nurserv at the YMCA, were for a turnover 01 £8.1 million, with a surplus of £188,000. In the clic￿[￿StanCes. and despite the imp8Ct of Coirid- 19, the trustee5 hre vÈry pleased with the financial results for the year. with a turnover of £6.9 mlllion and a 5urplu5 of £48,000. The trustee5 recognise that this performance reflect5 the swift action of the CEO and management teèm, the co5t-cuttlng measures undertaken. and the financlal support measuTesÉhat allÈviated some of Ihe impact of lockdtrwn. 11 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 servI￿s, for the depth of their 5UPPOrt 2nd loyalty. The cross- subsidy model contlnuÈd to work effectively thrO￿8￿Out 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 D￿ernber 2020 the ch8r¢ty had unrÈs*rittÉd 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 OL*tlines 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 a￿d 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 fi￿nCIal 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 eVal￿ated. 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 eXpÈDd5t￿re. 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 havef￿lfIl1ed 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 £or*clude 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 r￿Ulted 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 re￿IVed 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 Co￿￿T￿ 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 g￿aranteeth8tan 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 a￿Ve. todel￿tMaIerLal 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 tran￿ctIonS Reviewing charity palicies for authorisation of payroll and bank payfflent processes Reviewing bathk S￿tements for mater131 or unusual transactions Rewewing accoUn￿ng 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 inhere￿t limitation5 Df an audrc, there Is a rlskthatwe will notdetect all Irregularltles, includinE those leading to a materlal misstatement in tho flnanclal statements or nonmlc 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 re￿Ived 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