ACORN EARLY YEARS FOUNDATION IA Charitable Company Limited by Guoranteel FINANCIAL STATEMENTS YEAR ENDING 31 DECEMBER 2022 Charity number= 1145108 Company number-. 07703801 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 CONTENTS Trustees. Report Page 3 Independeftl Auditorfs Report Page 22 Statement ol Financial Activities (including incorne and expenditure account) Page 25 Ba￿nCe Sheet Page 26 Statement of Cash Flows Page 27 Notes to the Finanaal Statements Page 28 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT The trustees, who are also the director5 of the Charity for the purposes of the Companies Act, submit their Annual Report together .with the audited financial statement5 for the year ended 31 December 2022. The financial statemeYt5 comply with tb,e fharities Act 2011. the Companies Act 2006, thE Mernorandurn and Article5 of A550ciation, and Accounting dl?d Reportin8 by Charities.. Staternent of Recornmended Practice applicable to charitie5 preparing their accounts in accordance with the Financial Reporring Standard applr3ble in the UK and RepL•blic of Ireland IFRS 1021 (effective I lafjuary 20191. Reference and Administrative Details ChariD/ number.. Company Trurnber.. 1145108 07703801 The registered address forthe Charity a150 houses the central support team.. Unit 47, Waterside Barns Lodge Farm Business Centre Castleihorpe Milton KeynÈs MK19 7ES rhe following trustees served during the period, or were in office at the time these accounts were zpproved.. Eva Lloyd-Reichling rolyn Norfolk Chair frorn 18 June 2022 Narendra Laljani Vinessa Gwynn Datnien BeedhBFn Allawee Albaghdadi Robert Prosser-Dryer Tracey Coley LBurz Faulkner Ruth stone Hannah Evans Hema Kotecha-clarke Appointed 11 March 2022 Besigned 18 June 2022 Resigned 8 August 2022 Appointed 13 January 2023 Appointed 13 january 2023 ThÈ trustees delÈgate the day-to-day management of the charity to thÈ Chief Executive Officer ICEOI and the S@nitsr LÈadershipTeam ISLTI.. Zoe Raven Emily Hepden Asvln Morjada Mark Carter Aley Hunter Sue Fenton Laura Andrews Gabrielle Brandon Steve Petty TerÈsa GardnÈr CEO Head of Finance Appointed March 2023 Interim Finantial ControllÈr SÈptÉmber- NovÉmbÈr 2022 Chief Qperating Officer July 2022- February 2023 Operations M4na8er Resigned June 2022 HR Manager He3d of Early Years & Cornpliance Marketing Manager Faciliiies and Health & Sèfety Manager Finance Manager Bonker5' Hande15bankÉn Moorg3te HOUSÈ 201 Silbury Boulevard Milton Keynes MK9 IU ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT Reference and Administrative Details {continued) Solicitors.. Geoffrey Leaver 251 Upper Third Street Central Milton Keynes MK91DR Auditor5'. Steve Robinson Mercer and Hole LLP Silbury Court 420 Silbury Boulevard Central Milton Keynes MK9 2AF ACORN EARLY YEARS FOUNDATION Financial statement5 for the year ended 31 December 2022 TRUSTEES. REPORT About Acorn Early Years Foundation History Acorn Early Years Foundatlon ltsriginally Acorn Childiorel began as a single nursery in 1989 in the village of Ca5tlethorpe in Milton Keynes, where the org3nisation 15 Still led bythe founder and Chief Executive Officer. 2oe R?ven. Driven by a desire to create a nursery which combined professionalism wlth o personal touch, Zoe and her family lived above the original nursery for ten year5. and the organisation grew slowly and organically, first in old Victorian buildings, then on school sltes, and then including purpose-built buildings. Now, over 30 years latÈr, there are 17 nurseries 3tr055 three counties, several out-of.school clubs, extensive forest school provision, a catering service and a training centre. part of the growth of the organi5ation, 8 decision wa5 made in 2011 for Atorn to become a ch3rlt3ble social enterprise. The driver behind the move from a privatÈ company to charitablÈ 50ciBI enterprise was the desire to provide high quality, affordable childcare and early yÈars educatlDn in areas trf deprivation as well as in more affluent locations, and this was made possible with a cioss-subsidy model. As the orgafji58tion evolved. the emphasis on social irnpact became central to it5 policies. prartite, ethos and values. Acorn developed a reputation for encouraEin8 Outdoor play and learning. for providing profe55ional development opportunities and for an ethic of care which 15 ernbedded across the organisation. It also developed ertensivÈ experience of working in partnership with other organis3tSons. and offering innovatlve 501utions to childcare problerns, including providing freshly cooked healthy Tneals for nursèries that have limited caterine facilitie5, 3nd 5upporrin8 Other childcare provision with consultarKV services. Mission and Objectives Acorn's tnission statement is'to be inspirotionttllegrning organisGtion which operotes o mtrdelof Èxcellencefor eGrlyyeors coreond educotion which tscce55ible to all,. The charity's objÈitiV25 are to enhancè the development and education of children primarily under the a8e of eleven bv.. The provision of high quality childcare In nurseriÈs, out-of-school clubs and forest sthools,- Working to ensure that high quality childc3re is availèble to children and familie5 regirdlessof means, race. disability, gender, Identifying other social and developtnentèl 5UPPOrt needs of thildren and famillès and seeking to ensure these are Tnet, Encouraglng, Ènabling and sijpporting the involvernent of parent5 and carer5 In their Ihildren'5 learning and development,. and Contrlbutlng to the profe55ional developrneDt of those working in childcare. Ethos and PedagoEY Acorn have Èrnbraied an ethic of care a5 3 basis fof its core value5 3nd a relational pedagogy. Ihe ethic of care prioritises carin8 relationshlps and 3 responsive 3pproèch. It views care 8$ a value. not just 3 practice, and this is applied to Acorn'5 dealings With everyone, including children, family member5. staff members and the local community. ChildrÈn need to experience and witness Eenuinely taring practices if they are to learn how to develop carinE relations and a caring attitude thernselves. Acorn believes a relational ped3gogy underpins children's learning and development, re(ogni5ing the Importance of personal relationships between Childien. parènt5 and staff, and ihe role of 3dults in children's education. This also IncludÈs children's relationships with peDple in local communlties, including the elderly, 8nd with the natural world. Horne visits arÈ 8 kèy aspert of the settiing-ln process tor children.13ying the foundatiDllS of a partnershSp with parents. In addition intergenerational visits ID care homes and retirement accommodatlOn5 are a regular feature for most Acorn nurseries to fully embrace the relètion31 pedago￿. Whi15t hotne Vi51ts afjd IntergenÈrationèl vi51ts were ternpor3rlly stopped durlng the Covid panderric, in 2021 these were both gradually reintroduced, and In 2022 began to return to pre-covid leve15. Acorn's approach aim5 to be holistic and pÈr50n3lised, and prioritises caring relationships to support children's Social and Èmotional wellbeing. ACORN EARLY YEARS FOUNDATION Financial Statements for the year ended 31 December 2022 TRUSTEES, REPORT Ethos and Pedagogy (continued) The five value5 that arise from this ethos are.. Per50n31 Personalising care and education. treating children, parents and staff a5 individua15, Wlthin supportive, respettful relationships, Profe551onal Stri¥in8 to be a learning organi5ation, continually reflerting an(1 developing the knowledge, skllls and qualificatlOn5 of its childcare workforce. Nurturlng- Putting children'5 needs first through a htylistic approach that encompasses nutrition and encouraEerDent of Outdoor- Encouraging play and learning in natural environments, through an extenslvÈ forest school prov15ion, an(J every thild Spending time outdoors every d8y. Ethical- Putting children before profit, and being inclLJ5ive and su5talTrable, both environmentally and financially. SeekitTrg excellence, honesty and integrlty In 811 asperts of Acorn's work. Structure, Governance and Management Acorn Early YeBr5 Foundation is incorporated as a charitable company limited by guarantee. The bo8rd of trustee5 dele8ates the administration. Including financial management, to the CEO, who works wlth a Senior Leadership Team ISLTI to co-ordinate sUPPOrt for the nurseries, out-of-school club5, forest schools, catering department and training centre. The trustees have approved 3 financial delegated authority frarnework, and 3 risk management framework and register. Role description5 for the CEO, ¢hair and trustees set out the scope of delÈgation, and tr￿Stee$ have adopted a code of conduct. Annu81 skills audits are completed and used in the rÈcruitrnent of new trustees. Policy reviews are presented to the trustees, and sorne trustees rake a particular Interest in different aspects of the organisation. Eva Lloyd-Reichline and Vane55a Gwynn jointly shared the role of Safeguarding Trustee, working with the organisation'5 lead safeguèrding officer, who Is also the head of curnpliance, to ensure correci procedurÈs and practices 3rÈ followed at all times, and challengin8 polity, procedure, and prarticeto ensurethÈyarecompliant and remaSn effectiv@ at safeEu8rding children. The safeguarding role Is now being pa55ed on to L8ura Fpulkner and Hema Kotecha- Clarke, once their training 15 complete. Trustee5 dlscuss ond approve the pay and remuneration tsf the CEO each year, and maintain èn overview of Senlor Leadershlp Team's 5o1aries and the ovÈrall pay Scale and fair pay policy. There are three committee5,' Finafjce, Audit and Risk, chaired by Robert Pr055er- Dryer., Governance and HR, chairèd by Vane55a Gwynn., 3nd Childc4ie, Learning and Oevebpment, chaired by Eva Lloyd-Reichlin& as well as a Strategy and lrnpact working group, chèired by Narendr3 Laljani. Related party tiansactions across the year, and balances at the year-end We￿ paynTent5 for childcare made by trustees who are also nursery parents, and reimbursement to tiustees for travel expenses. This totalled £20,061 for the year to 31 December 202212021. £10,169>, with a further£654 being paid in advance for 2023 childc8re12021-. £nill. In addition, Acorn Nursery Properties Lirnited IANPI. the landlord for two of the nursery building5, 15 a related party, as the CEO Is the majority shareholder In ANP. ANP charged the charity rent on two properties. totalling £69,00012021.' £69,000). Acorn fLJrther ch8rged book-keeping of f 60012021.. £6001 to ANP. The Board of Trurtees Acorn Started 2022 with eleven tru5tee5. Throughout the year there was 3 new appointment in M?rch offset by two resignations in June and August. By the end of the yÈar there were ten trugtees. P05t year end (January 20231 there were two furthÈr appointments, tsking the tot31 number of trustee5 to twelve by the date of signing the financial Statements. ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT The Board of Trustees IroTrtinuedl Two out of the four scheduled quarterly board tneetinE5 were held online. The remaining two qU8rterly board meetings, as well a5 the Strategy Day held in.'.Jne 2022, werÉi 3ttendo.l in person. These meetings were supplelnented with furthèrcDnference c211s as required across the year, wfth regular updates comrnunicated via email. How Acorn's artivlties deliver public benefit Acorn provide53ccessible, hlgh 4ualitychildcare ande4ily education in its nurserie5, out-of-school clubs, and lorÈstschoo15for children from 4 month5 to 11 years. In safe and 5UPPOrtive learnlng environments, highly qualified and profe55ional practitioner5 nurture each child's social, emotional, and physital developrnent, building their self-confidence and love of learning, and thereby preparingthern to take advantsge of opportunities. responsibilities, and experiences In later life. Acorn airns to be Socially inclusive and seeks to give all children high quality childcare rÈ£èrdle5s of background. Acorn is committed to providinethe government-funded entitlementto childcare and aims to ensure ihat children attending only the funded hours benefit from the full extent of the activitie5 and resources provided wrthin rhose se$5i0ns. Acorn's fèe5 are set at rates which ère as affordable 35 posslble, without jeopardislne quality. In February 2023 Acorn intiodut@d a voluntary contribution towards the I05t of food and activities for fully funded placÈs only, to help brid8e the gèp between Acorn'5 Costs and the fundin8 ratE5. since it5 Introduttion number of these fully funded fatnilie5 have been happy to contribute. Places are èlso made èvailable for the local 3Vthority and lor children with additional needs. Atorn operates a cr0$5-5ubsidy model which monitors and Èvaluate5 the financial viability and the social Impart ol each nursery to ensure a balance 3cross the 8roup. Pèrtnership working with children's centres, lotal authoritie5. schools. and external 3gÈnties is a key feature of Acorn's success in SUPPOrting parent5 and carÈrs. and in promoting the early years sector as a career pathway for both young peDplÈ and adults seekinE change of career. Regular vi51t5 to care homes and retirement accommodations also enrich the lives of elderly residents In local communities. The professional developmpnt of Acorn's childcare warkforce is a key part of the strategy for maiTrtaining hi8h qullity provislon within the settings. Trainin8 and supporr is provided for all staff, from apprentice5 UP to those working toward5 higher level qualiflcations. The support for the professional development of early year5 practitioners extends beyond the Acorn workforce through ihe training centre. Cour5e5 covering core subjects. such as safeguarding, inclusion 8nd first aid, are run alongside a ran8e of wider subjects, from forest School leader training to experiential play. Pay scale5 are improved annually, and Acorn's action research group is developing ways to support parents, measure social impact and tcintinually improve childcare practicè. Forest schoo15 and outdoor playand learning are of particular importance in dplivering public benefitto chlldren who would otherwise rniss out on the opportunity to engage with the nèturèl world and benefit frotn the freedom, autonomyi and 5ens0ry Èxperience5 of the outdoor environment. Session5 are Llelivered to chlldren attending Acorn nurseries during funded hours at no additional chargè. During school holiday5, forex school sesslons are offered to school agÈ chiltlren, accessed by a significant number of children with additional needs. The trustees have hèd regard to the Charity Commi55ion'5 guidance on public benefit. ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES. REPORT Achievements and performance in 2022 Social enrerpri5es are businesses that Serve a social andlor efjvironmental purpose. Currently there are an e5tirnated 100,O(X) social enterprises in the UK that are sÈt up to tackle some of the bi88e5t challenges Acorn were delighted to have won the Custorner Facing Sociol Enterprise of the Year Award at the UK Social Enterprise Award$ 2022. recognisin8 the organisation as tsne of the UK'S rnost effective and leading social enterpri5e5. Early Years Acorn ècquired four new nur5erie5 in 2022 as well as opening a further Holiday Club at Cranford in February 2022. With two of the nurseries IRowans and Hedgerows) being transferred from Milton Keynes Council and one being transferred from Mulberry 8ear at the Open Ljniversity, It was Import4nt to retain the nursery teams at each of those nurseries in order tD provide fèmilièrity to the children and parents continuingto attend the nursery, linkingtoAcorn'5 core ethicof tare, ènd also retaining experienced practitioners within the sector. Frorn these transition5, Acorn retained 17 practitioner5 acros5 the three nuiseries. The new nursery at Emberton ha5 been achieved out of è partnership with IhÈ Village Schools FedÈration, and is not only eKClting DPPOrtunity to provide a Ioc31 community nursery, but also all outdoor learning centre and holiday club provislon. There were seven Ofsted inspections zcross the Acorn nurseries, forest Schools out-of.school club5 in 2022. Of these inspections, Acorn received the following results.. Acorn at Cold H3rbour Acorn Day Nursery (Stony Strarfordl Acorn at St3nwick Acorn Day NursÈry YMCA, Central Milton Keyne5 Acorn at Row3ns 10 M3rch 2022 23 March 2022 28 july 2022 23 Novembef 2022 Good Outstanding Outstanding Good l December 2022 Re uires I rovement Barton Sea rave Out ot School Club Aiorn Forest School Holiday Club 8 June 2022 25 July 2022 Met Met Through regular communiiation, including Fnonthly meetings with nursery manager5, Acorn will share findin85 and recommendations from individual ofsted results to 3pply these acr(>55 all nursery. forest school and out-of-school club settings to continue to improve 3nd provide high quality childiare and education. As part of Acts¢n'5 contifjual efforts to provide high ou3lity Childca￿ to all children regardless of means. race, disability, gender, religion, belief or any other factor, a focu5 In the year w85 to nve5t furthef into developlng a SEND strate8y to strengthen the prDvisiDn support ftrr children with additional needs. One of th elements was to introduce SEND support practitioners. Followin8 this implernentatlon, Acorn ha5 already received p051tive feedback and can already see a difference to these children's wellbein8 and development. Acorn has continued to develop its relatlOn5hip with gedford Borough Council over the year. ￿￿ra Andrew5 has joined the Schoo15 Forum a5 well as the Advisory Board for thÈ Children'5 Centre5 and continues to represent Acorn on the Early Years RÈference Group and leads one of IhÈir Hub groups. The aiffl of these relationships 15 to bring the need for high quality childcare and èdditional governtnent funding to the forefront of Council's agenda. ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT Forest School Fure5t School continuÈd to see the positive effett5 following the Covid-19 p3ndemic throughout 2022. An increased number of schools began investing morÈ time to outdoor play and acknowledging the irnportance of Forest School and its ifflpact on childrÈn's emotional wellbelng. Consequently. when schools attended Acorn's Forest School 5e5sions, thÈy showed more È3Eerness to focu5 on wellbeing. tearnwork and resilience rather than acadÈmic toplcs or themes. Although schools are Seeing increased budget constraints. they have been able to use a lange of funding to allow them to continue their forest school 5e55ions or forest school training, these Include pupil prèmiuw funding as well as using the covid catch up funding until it wa5 Withdrawn. Ongoing investment in Acorn training for level 3 Forest School leaders c)ntinued across the yÈar. Th15 Wa5 evidenied by an Increaslng nufflber of schools booking staff on courses to help with the wellbeing of their pupils. The irnpact of this h35 been the obseNètion of a greater number Df schoo15 having dedicated Forest School site5 in their grounds. During 2022 both Heronsgate and Kents Hill Schools had Acorn deliver in-house training and ses510ns on their grounds. Another highlight of 2022 was having Acorn's flrst Otsted inspection at its Salcey Forest Holiday club. and receiving a 'meV outcame. In addltion, Acorn'5 Forest Schools received fantastit feÈdback from the inspector st3tin8 'This holidoy club 15 u speciolpluce ro be. When children uirive, they wowe enthu51USticolly to theirfiiends Gndgrtet thErn Wlth open tsrm<. During the surnmer, Acorn be£an a pilot study on the impact of Forest School on children with SEND and received sotne great insight from the parents involved. Training Centre Acorn's ongoing committnent to offerin8 3pprenticeship5 and developing it5 apprenticeship scheme wa5 recognisÈd 3nd rewarded in 2022, winning the Large Employer of the Year award at the Milton Keyne5 Apprenticeship Award5. 14 apprenti¢e5 joined the orgalli50tion in 2022, 3 27% year on year Intrease. Dernand lor face-to-f3ce CDurs2s continued to Improve during 2022. repTe5enting 40% of courses offered compared to only 15% in 2021. In total 72 courses were delivered to 440 delegates during 2022 of which 29 were delivered face-to-face. Due to the Impart5 of Covid-19, online courses continue to be in high domènd. Therefore Acorn has recogni58d It is important that these are still offered. A post coursÈ survey is sent to each dolÉEate requesting feedback. From the feedback received In 2022 Arorn achievÈd a Net Promoter Score INPSI of 85%. Of the courses ran in the year, two courses were dedltatÈd to parents IPromoting P051tive Behaviour and Basic First Aidl and Acorn supplemÈntÈd 5 spaces on these courses free of charge foT families most in nÈed of 5UPPOrt. In addition, internal 5t3ff training day5 achieved an average NPS of 69%. Whi15t thi5 15 lower th8n the external training score, the NPS for internal training 5teadlly increased throughout 2022, with the highest score of 76% being achieved afterthe October 2022 training day. This is the highest NPS achieved at an Acoin training day to date. From the feedback following these training days.. 96% of delegates rated the overall enjoyability of the training courses as'very good. or'800d' 99% of delegate5 rated the trainer5 knowledge as'very good, or'good, 94% of delegates rated the impact of the cour5e5 for their role a5 'very good, or'80<>d'. Catering The nurnber of nurseries th8t en8aged Acorn's Èxternal catering servile decreased during the year from six to three as a result of Acorn's nursery acquisitions. During the Inifial start-up of Emberton, the catering Service provided meals untll a chef was retruited. Over the yearAcDrn supplied around 102.600 meals. A holiday club contractÈd Acorn to supply meals fortwo day5 for up to 20 heads. The contrart iontinues for 2033 School holidays. The holiday care club recommended Acorn to another holiday care club, which resulted in anothÈr 51milar contract beginning In 2023. Both the nutritional handbook and the Acorn recipe book 8re under way and are duè to be completed in early 2023. ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT Acorn's People 8y the end of 2022, Acorn had 3 workforce of 439, which Is an Increase of IS% compared to the end of 2021. Thi5 Was P3rt1y due tts the opening of four new nurseries durinE the year, a5 well as increased otcupancy at several nurseries. At the end of 2022, 122 of staff were working le5S th8n 30 hours a week, allowillg for a bener workllife balance. In April 2022, a fupE (Transfer of Undertakings IProtection of Employtnentll process was followed to transfer six staff frorn Rowans nd Hedgerows nurseries, whlch were Council run nurseries. They were tr2nsferred on existinE term5 and condition5 of employment. Following the same TUPE process a further li rtaff were transferred from the Open UniversiV5 Mulberry BÈar nursery in september 2022. Recruitrnent and retentlon continued to be one of Acorn's biggest challenges. In 2022 there were 159 nÈw starter5 and 103 leavers, which equate5 to an annu31 turnover r3te of 27.3% la significant reduction from 35% in 20211. Thi$ Is largely due to the itnprovernent5 made in the induttion process and the additional progre55iuTr roles that have been iniroduced. Of the 159 new starters, 34% were recommended by ex15ting or forrller staff and 22% were through soci31 rnedia/online advertisernents (Facebook, IndÈed and Googlel- Of those who resigned the rn3jority left for rèasons outside ol Acorn's control, for example 34% left for personal reasons and 13% for a change of c3rÈÈr path. Acom are cornmirted to Improvingthe salarie5 of its staff where possible and within the financial constraints of providing affordable childcare. Being a social enterprlse means Acorn are able to fully reinvest profits into its staff and therefore are comrnitted to reviewing pay scales on a reeular ba515 to ensure the organisation remains competitive with other local early years providers. To mitigate the c05t of living crisis, the majority of staff across the n￿rSerIeS had two pay increases during the year (April and september 20221. This a150 tied in with the In¢rease5 in the National Living Wage Ifrorn £8.91 to £9.50 per hour in April 20221 and the Real Llving Wage Ifrotn £9.90 to £10.90 per hour in Novernber 20221. In April, of those who had increase, the average increase was 5% and in Septernber it was 4%. Acorn's 2022 Gender Pay Gap report reflect5 the fact that 95% of its workforce are female. Of the 5% of m3le workforce, the ajority are employed in role5 not in the nursery settings, whÈre salaries tend to be higher. Theiefore, whllsr there Is 3 gender pay gap overall within Acorn, this ha5 reduced frorn 19.8% In 2021 to 12.4% in 2022. Within the nursery settings, however, the gender Pay Eap Is reversed due to rnore females employed In manager, deputy m8na8er and adrnin rDles. Equality, Diversity. and Inclusion Eqvality, diversity, and inclusion are at the heart of Atorn'5 ethos, vlhich aims to ensttre that all the nurseries and clubs are fully Inclusfve, meÈtSnE the needs of 5tsff, chlldren, Ind fsmilies, regardless of ethnic heritage, social and economic background, gender, ability. or disabllity. The organisation Is cornmitted to providing equal opportunities in Èmployment. and diversity within staff team5 15 encouraged, backed up by a firm commitment to anti disiritnin3tory practice and promoting equality of opportunity. This 15 implemented bv". encourèging equalrf(y and diversity in the workplace striving to ensure that the work and learning environment Is free of harassment and bullying and that everyone Is treated with dignity an(J respect person and job specifications are limited to thosÈ requirement5 that are necessary for the effective performance of the job cèndidates for employment or promotion are assessed objettively against the requirements for the job, taking account of any reasonable 8djustments that rnay be required for candidates with a disability. Di58bilty and personal or home commitments will not forrn the basis of employment decision5 except where necessary holding regular staff forum tneetings to inform staff of matters concerning them as staff, as well as updating arld including them in the future direction of the org8fj153tio opportunities for training, development, and progression are made available to all Staff, to help them to develop to theirfull potential. 10 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT Trainin8 and Professional Development As recruitment of qualified prartitioners remainsan ongoingchallenge, Acorn have coniinued to increase their8pprenticeship ottering5 in 2022. The opportunity to study for a Level 2 or Level 3 qualification is offered to all apprentice5 and unqu31ifiÈd Nursery Assistants. The organisaiion ha5 a150 Introduced i Level 5 qualification for existing staff who wish to progress their careÈr and quallfications further. This will enable Acom to build and retain a highly skilled and qualrfied workforce forthe future. In 2022, 35 5t6ff (Apprentlces and Nursery Assistants) were working towards their Level 2 or Level 3 qualificat￿n. This is èn increase frorn 29 in 2021. A lurther 11 staff completed their qualification during the year. of these, two are now Senior Practitioners and three re Lead Practitioners. In addltion, Acorn currently have three members of staff 5tudyingfor their Level 5 Early Year5 qualification, or)e of whom is a Senior Practitioner whilst the other two are currently 0￿puty Managers. Acorn launched a number of new roles In 2022 including Lead Practitioner, SENOCO Support PractitionÈr and Acorn Mentor. The58 roles provlde stepping stones withln the career proEres510n pathway at Acorn to prartitioners aspiring to rnore senior roles. Acorn ran four training days throughout 2022 for all staff. which included a summer conference when staff 4crosS 811 nurseries were able to corne togerher In one venue. Ekternèl speakers. Including keynote speaker Tatnsin Grimmer, presented Invaluafjle sessions on topics such 45'DeveloplnE a Lov￿n8 Peda80gy' a5 well as srnaller breakout sesstons covering nurnerou5 relev3ni tOPlCS. The NPS score for the day was 70%. Central Support Offlce Since April 2022. the Central Support Tearn have been relocated from their temporarily office within the WÈstcroft training rooms to a new office at the Lodge Farrn Business Centre In Castlethorpe, on a six year lease. Reinvestment Despite atquirlng four new nurseries In 2022 wlth set up costs of over £211,000, ongoing refurbishment ènd capital expendlture acr055 the remainlng nurseries was maintained. Over EISO,000 was speni on capital expendIt￿re excludin8 the start-up costs for the new Sltes. Thèse included, but not IiTllited to, elettrlcal upgr&des at Ca5tlethorpe and Burton Latimer, replatÉrnent of the fire detection System at Stony 5tratforé, LED lighting throughout Westcroft, and a new 5ecurrcy entry 5y5tem at Stony Stratford. ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT Social Impact Acorn 15 working tDwards a vision of a more cèring and connected society by putting children'g wellbeing and devÈlopTnent at the centre of everythin& by forming strong partnerships with families, by collaborBting and engaging with others in the cDmmvnity, and by engaging children with nature. This is only possible because Df the p3sslon, dedication and profe5sion31ism of Acorn staff, commitment to professional development acr055 the workforcÈ, and the ethic ol care that underpin5 the Acorn Èthtss. For o fflore coring & connrfled socièfy Portneryh¥) wilh lunil*s Chkni ￿00ed with Happy. confident children ThÈ ongoing negative effects of the covid-19 pandemic are still being observed Tnany children's social and emotional development. Acorn have acknowledged these imp3rts, which varyfrom child to child, being struggling With emotions to speech and langu8ge de13yS. There has also been particular focus on supporting children wlth spÈcial educational needs and ¢fi5abilities, chlldren with English as an additional language, and children on child proteition pl£n5. Acorn continued to tailor thÈirÈnvironmentto ensure children's needs are always put first. This includes, but not limited to, ensuring key pÈrson5 build confidencè antl instil a sense of s8fety for their children n(J working closely with parents to understand the child's current interests to iTrtegrate thi5 in their learning and developrnent whilst at nursery. Context.. A thild who attended one of the nurseries has 3 rare conditian called Rett SyndromÈ, which is a rare genetic neurological and devÈlopmental disorder that affects the way the braln develops, causing a progre55ive1059 of Motor skills and speech. Whilst at Acorn, the child wa5 provided with one-tO-DnÈ supptsrt to ensure that they could partake in all artivitie5 on offer- intluding Forest School. The other children were also aware of this child's needs and were very nurturing-they took the timÈ to inilude them and continuously support them. The family had to face a difiicult fight to g8in a plaie in an additional needs school, as Sadly, the area has a significant shortage of these spaces. The Ihild wa5 going to stay with AcDrn for an additional year if their appeal wès not su¢ce5sful. but the nursery contècted MP5 along with the local outhority and lortunaiely, the appeal process was successful. The child has now started school and they are rhriving. 12 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT Impatt.. Helped the child feel happy, emotlonally secure and able to build relationships Wlth other children Maximised the benefit frotn a rich and accessible learning environment, including a range of sensory experiences and engagement with the Thatural environment Child provided with abund8nce of opportunities to be auroTromous ènd explore The family was directly supported throughout their child's nursery experience, 55 well a5 through the preparation forthe next steps èfter Th￿r$ery Enabled trained ractitloners to SUPPOrt the child all ear round Quote from family.. "Well, what can I sèy, forest School with Gemma and Donna is by far the BEST holiday club. I have two boys17 & 41, of which my eldest has been attending for the13sr 3 ye8rs, they ab501utely love goinE to *ore5t School and gÈt excited for the holidays to start so they can 80 and then get sad when their time eTrds. They are Just so happy and love eveTrthing they do there, it's am8zing as they h8ve both learnt so tllany skills whiih they put to Use in every day life 3nd qurte 51mply love being in the outdoors rollinE in mud, tnaking dens and èll sorts of inventions out of wood. My younge5t'S 5choDI report evpn said how he loves forest school and has put his ski115 to Ljse, leading aitivities and coming up with idea5 for the Schools welly Wednesday.. Gemma, Donna and the team are Quite simply amazin& full of energy, passion. kindness and an absolute love for what they do, they really make It and mv boys just sdore them, they always go the extra mile and are always on hand to help with anything. There is no where our boys would rather be and as parents we always know they wlll have so rnuch fun. be looked after so well and come home tired and happy, a winning cornbinètitsn1- Impact.. ChSldren feeling happy and excited to pèrtlClP3te in activities Children engoged with nature and learning ski115 that support the tDThnection to the natural environment Children's confidence increasing and exiending into other areas such as thelr schooling experience Family feeling SUPPQrted at all times ssurÈd that their children are safe and h Partnership with families By putting the chlld first in everything that Acorn does, Its rel3tion5hips with families are fundamental. Acorn values workin8 closelv with farnilies, prioritising effectivÈ communication and ensuring that they h8ve all the sUPPOrt they may need for thern and their children, including emotional 5UPPOrt in tirne5 of need. Extending it5 SUPPOrt to familie5 Wlthin Its local communities, Acorn also continued collecting clothing dDnationsforotherfamilies,through'Baby Basics., which Isè Milton Keynes charity that 5UPPOrts lamilies Family respon5e5 from annual leedback survey". Yhe nursery crpate5 3 bond with my child and understands her needs, making her feel ar home and comfortable. There is also an understanding Df my personal situation at home and so they are not only 5UPPOrting my Child, but rne also. he focus on our world/eDvironment is amazin8, thing5 such as tezchlng the children Jbout where their food comes from and growing their own food 15 greot 3nd helps them understand the healthierchoiEe5- something we aim to d) at home. 'Practitioners always tailor their teachinE and caring according to my son's progress. They 2rÈ so happy to listen to parents and follow up on what we teath at home. The cofflmunlc8tion is brilliènt." "It's a wonderful nursery, I never worry about my child when he's thÈre as I know he'5 Safe and will be tared for as well a51 could do." 'The nursery alway5 re5pond5 to rne55ages as qulckly as possible and always try to be flexible with last minute childcare reoue5tS- 50 thank youl" Yhere 15 genuine care for the children and drive to give children lots of great experiences insidÈ the nursery and outside in the community." "The staff are very attentive and also so friendly. My little one adores them and you can see the connection that they have forrned, this is lovèly ta see 35 It makes leaving thern a little easier. 13 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT Partnership with families {continued} -Never have I felt my Ehild is just another child. All of the staff seem to know herand her Iikès/dis1ike5. -Fantastic activities forthe childrèn, especiallyoutdoor play and forest school. Great tTIP5 Out and visitor5 in forthe children, Our key workers have been ab501utèly brilliant. ou do everything so well, rny child is very stimulated and learns a lot from being at Aiorn, Ihe care and attention staff give is second to none, we Ère so pleased WÈ managed to get a place and can now see why theie is a long waiting list. -staff Show ihat they really Cère when you drop and pick up your child. They take the time to let you know how their day wa5 or listen to any conterns/worries you might have so that they tan look after your thlld forthe day.- Forest SchoolholidL¥y club porent..'Two of my children 3re autistic and Forest School 15 the one pl3ie where I've never felt judged by the staff or been worried about leaving therll there. Nothing 15 ever too much trouble and I've often feth like Forest SihDoI has really been thÈre for us and supported u5 so well. The attention to detail of the activities and food offering 1$ second to none. My children feel safe and included in everythin& to a level we've never felt at any other club. We 35 a family would be lost without Acorn Forest School In the holidays. They are like Our extended farnily ntrw. They've rnode 50 much efFort to learn my cThii(Jren'5 disllkes and Ilkes. We get lovely feedback and photos after every visit 3nd I've reiomrn2nded Forest School to so mafjy people now. I have never ever had 8 bad word to Say about 8nything ovèr the last 5 years since we started using Forest School. I could waffle on and on èbDUt just how much we love it- it really is 3 greai place and deserves 50 muth recognition and respect.. Key stat15tics from annual farnily fÈÈdback 5urYey'. 95% of parent/carers felt that the key person's understandin8 of their child's need5 and preferencÈs wa5 very or somewhat effective 97% of parent5/carers felt satisfied with the tnanagement Df thp nursery 91% of parentslcarers folt Acorn effectively or very effectively involved them in the learning ènd care of their thild 92% of pHrelltslc3rers wer@ satisfied or very sarisfied with the daily feedback frorn staff 93% felt the outdoor environment tyf our nurseries w35 good or excellent 91% felt that the sÈturity measures at our nurseries were good or excellent Community embeddedness the restrictions ofthÈ pandemic eased, the nurserie5 were once again able to provide the Ihildren with opportunities of engagement ith the local community. Thi5 included visils to the local retirernent homes where the children and re5ident5 enjDyed doing arts and crafts together using natural materials the children had collected on their wayi bÈing creative with horne-tnade playdough, as well as singingand dancin8together. To mèrk the special occasion ofthe Pl8tinumJubllee of Queen Eliiabeth11 the children and the retirernent home rèsidents read stories toeether about Queen Eliiabeth, and some children were fortunate to meet a rÈsident who used to be 3 501dierforthÈ aueen. A5 part of incorporatirtgthevalues Df 'Random Acts of Kindne$5 Da¢, the children at one nur5erycre3ted artwork nd baked coukies, and delivered thern to their local care home residents, as a surprise a¢t of kindness. These experience5 continue to have positivÈ irnpact5 on the wellbeing of thp elderty and the children, as well as facilitating the children's development. The children, their families and the nursÈry 5tèff at some of A£Drn'5 nurseries continued to collect and deliver food don8tions for the Milton Keynes Food Bank. Alongslde making a real drfference to people in the Ioc81 community, thi$ also helped the children to dÈvelop an ethic of care towards their community. addition, some nurseries took their environmental action further by connecting with enviionmentally passionate members of the community, such as rnembers of thÈ local council and the eto-representative of Morrison5 and attended litter-picking walks together. This hÈlped to extend the children's understanding of the importance of looking afterthe n3tural @nvirontnent by inspiring children to t3keaction now. The positive impactof these regul8r Iitter-pickingwalkswas s8en with some of the olderchildrÈn teachingtheyounger Ihildren about the practice of littÈr-pi¢king. 14 ACORN EARLYYEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT Children engaged wlth nature EDsuriTrg 311 childrÈn are surrounded by nature as much as possible. and therefore experiencing its beneflts, as well as working to develop children's connection towards the rbatural environment Iwhich Aiorn believes is the first step in developing sustainable practice is strongly embedded within the organisètion'5 ethos and therefore put into prattice across all of its nurseries. Not onlv doe5 thi5 Include regular access to forest school provision, free-flow 8tce55 to garden areas wlthin the nurseries and regular walks to parks and fields lin all types of we3therl, but Ill 2022 this also included.. Getting involved in the Wildlife Trusts 30 Days Wild Challenge. Exploring the community gardèn, identifying different trÈes and srnellin different herbs Celebrating ralnfall by putting on wellie5 and creatin rainbow puddles In the arden Pickin8 and cookln8 local blaikberries during Forest School to m2ke blatkber am Visits of 5Tnall animals15UEh a5 lambs and guine8 Plg51 to some nurseiies ExpÈrien¢e the emotionèl benefits of connecting to nature Develop knowledge of and interest In local fauna and flora Notlce ihe beauty In naturÈ Develop an increased knowledge about healthy and sijstainable lifestyle5 Develop knowledge of and interest in 3nima15 Witness animèls u close part of the forest school 5e55ions the below are further examples of the children connettlng with nature.. Creating Twig ID j3rs to W8tch the spring buds row Develop knowledge of Fauna and flora Planting an orchard at the Cold Harbour slte with the children Took pBrt in the Parks Trust acorn collection to help protect the ancient woodlands Celebrated World Bee Day by making'bee- bombs, to cre3te wildflower are35 to help the bees thrive Undèrstandin how trees Understanding and identifying Faun3 Understandin the health lifecycle of thÈ oak tree Develop knowledge on how to help protect the wildlife UndÈrstandill8 the Importance of bee5 Wlthin the ec05y5tem row Building on the importance of thildren being en888ed and connected to nature, the organi5ation's eco-cornrnittee and Staff teams also fotU5 on providin8 childrÈn with opportunities that help thern develop an ethic of £are respect towards the environment. In 2022, this included.. Buildine their own bug hotels Develop 3n undersianding and appreciation of the irnportance of biodiversity Learn the process of taking care of plant5 Develop an increased knowledge about healthy eating Develop an understanding of the purpose of specific livine OTgaMisms within the ec05y5tem Learn the im ortance of natural compostin systems DevelDP knowledge cf how to support wildlife Planting their owo veBet3bles, fruits and flowers Looking after worms in 3 wormery CrÈating bird feeders Learning about frogs through a visit from a grandparent who brought in a frog to the nursery th3t they had found In their own arden LoDklnÈ after chick5 during sprinl that were prÈviously bought to nursÈry as eg65 in an intubator to learn ihe life cytle of (hicks Witness wildlife up cltsse Leorn and appreciate the diffÈr2nt char3cterisrics of inima15 Leam the proce55 of takinÉ care of animals Celebrate nature's connection t0 5ea50nal occasions 15 ACORN EARLY YEARS FOUNDATION Financial 5tatement5 for the year ended 31 December 2022 TRUSTEES, REPORT Children engaged with nature (continued) And t3king this one step further, the staff teorn5 and the children inspire afjd encourage each other to take action towards amples ol tsklps . Develvp an aw3rene55 of the Impart of littering. Extending learning about recycling and reducine waste. Helping children feel ernpowered to t3kÈ aition and make a chanEe Attending littÈr-plckin8 walks with members of the ¢ornmunity Visiting and purchasing from Ioc81 iero-wa5te shop Feel Insplred with what 8 SUStain3ble lifestyle c8n look like Setting up their own lending library within the local community, offering fèrnilies the Opportunity to borrow items Develop an understanding of the importance of community Develop an vnderstanding of sharing and borrowing with sustainability rnind5et To ensure that 5UStainable practices are consolidated and continuously 8rowing and developin8 Wlthln Acorn's education81 approach, the organi5ation has an eco￿0mmIttee which consi5t5 of environmentally passionate early years prattitioners (Acorn's eco-le3dsl- In 2022, eco-leads across the nurserie5 grew in connection with each other. increasing the Sharing of new sustainable activity ideas for the children, a5 well 8S the flouri5hment and Implementation of best prattlEe, such a5 making their own wet wipes and workin8 Wlth the company'Nell8' who resurface plastic cJtline btsard5 to reduce plastic going to landfill. The strengthened relationships between the eco-lead5 also meant that more ol Acorn's nurseries signed up to the edutational pro8r8mme 'Eco- 5thoo15' This programmÈ is helping to inspire practitioners to empowèr and engage Ihildren in irnportant environmental issue5 Ithrou8h tOPiC5 such as biodi¥ÉrsitV, Waste 8nd waterl, tearh great responsibility, as well as to provide thÈ skills and knowledge ftrr ctively protecting the natural Ènvironment now and In the future By the end of 2022. four of Acorn'5 nurseries (Kents Hill, 8urt¢n Latimer. Sharnbrook and Westcroftl 3chieved the Eco-Schoo15 Green Flag Award. This is an international accreditation recognisinE voung people's environmental action5. The Sh3rnbrook nursery was additionally recognised in ihe Eco-khools 2021122 Impact Report as a 2022 Eco-star withln the topic of water. which 15 all about valuing and preserving the most important resource. Green Fla Awaid feedback from Eco-School5'. 'The chlldren have developed their confidence and skllls in leadership, active citizenship and how to work in 3 teaml It is clear that your approach to the Eco-committee demonstrates a proactive, inclusive and educational approach to the programme. It is Impressive to seel" 'We're really impressed with how you've Ilnked environmental issues to SD tnany areas of the EYFS framework. he way your Eco-5chools work is guiding children along their path to becoming curious, caring and tomp8sslonatÈ young ecole risk in financial and operational are35 8nd areas which could result in reputation81 impact. A risk matrix has bpen drawn up to asslst the trustees which is used in a55e5sing risk5. This is kept under regular rewiew. A risk register h8s also been further developed which identifies the major risks to financial, operational, governantÈ, environmental, external and regulation and tompliance areas. This works in Eonjunction with the risk matrix to help the trustees to establish the severity of risk and how to mitigate them. The trustees receive report5 at their meetings to monitOT the financi818nd trperational position of the Charity and Identify any exposure to risk. Alongside these two risk management tools, the ChÈritY 15 further developing Its busine55 continuity plan IBCPI. The BCP identifie5 the ajor incidents and issues which could have a substantial impact on the operatlDn of the charity,. these could range from a13rge-scale incideni such as fire orflood, to reputational dèmage, to a child safeguarding issue. The UCP details the requlrÈd actions and response5 to ensure continued operations In common with the R15k Mana8ernent tools. the BCP 15 kept under review. Golng Concern The trustees received regular financial reports throughout the year. and cash flow forecasts were updated 8nd regularly reviewed by thè Finance, Audit and Risk iornrnittee The plans for the new nurseries were also scrutini5ed and monitored by the trustees, who remain confideni in the ability of the rnanagernent team to maintain the organisation's financial viability. Atcordingly, the trustees have tDntinued to adopt the gDlng concern basis of accounting in prep8ringthe financial st3tement5. Disclosure of information to Auditor The trustèes who held office at the date ol approval of the Trustees, Report confirm that, so far as they are each èware, there 15 no relevant audit Inforrnation of which Ihe Charity'5 3udrtor Is unawarÈ'. and each trustee has taken all the steps that they ought to have taken to Make themselves aware of any relevant audit inforrnation and to establish that the Charity'5 zuditor is aw3re of that information. Auditor The charity'5 auditor, Mercer & Hole incurporated on l October 2022 to become Meicer & HolÈ LLP. The trustees have consented to treating the Incorporation of Mercer & HolÈ as a continu3tlon ol the existing audit arrangement. The trustees who held offitÈ 3t the d3te of approval of the financi81 st8tements are yet to confirm If Mercer and Hole LLP will continue in appointment foi 2023. This will be contirmed lèter in the year. ACORN EARLY YEARS FOUNDATION Financial statement5 for the year ended 31 December 2022 TRUSTEES, REPORT Plans for future Periods Further nurseries and developments within the existing portfolio There are currently no formalised plans to identify or purchase further nurserles in 2023. The focus in 2023 is to provide support and Investment in the four nurser￿5 aiquired In 2022 to get these established and positively contributing to the Eross subsidy model. There are a150 plafj5 to open an outdoor kindergarten at both Ernberton and Cold Harbour, which will be ierm-time only sessional provision to cDmpleYnent the outdoor holiday clubs at both sites. Further expansion of thÈ fore5tschool activities and outdoor holiday clubs 15 also bein8 planned. Further opportunities Atorn's airn Is to contlnue to grow at 3 rnanageable pace, in order to increase the number of childcare and early education place5, and to improve financial sust8inèbility. which is enhanced by economie5 015cale. There are a150 plans to exp8nd and develop the training centre, forest Schools, and ihe work of the action research group. and the measurement and evaluation of Acorn's Social impact. Each opportunity will be 555e55ed In terms Df its short-terrn financi81 cost, longer term financial benefit. and social impètt. FollowinE the 2023 budget on 15 March 2D23 which announced that through gradual phases, by September 2025 the government will offer children aged nine months to three year5 30 hours a week of free childcare In term time las long as both parents are working at l@ast 16 hours a weekl, thls wlll becorne a focus In Acorrt's future plan5 or possible expansion in preparation for the expected IncrÈase In demand. 20 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 TRUSTEES, REPORT Trustees, Responsibility statement The trustee5 (who are a15v directors of Acorn Early Yeors Foundation for the purposes of company lawl 3re re5ponsiblÈ for preparing the trustee5' znnual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Gènerally Accepted Accounting Prècticel. Comp3ny law requires the trustees to prepare financial statemÉnt5 for each financlal year, which 8ive a true and fair view of the state of affairs of ihÈ tharitable comp8nyand of the incornin8 resources 3nd application of resources, iricludingthe Income aTr(l expenditure. of the charitable company for that perio(l. In preparing these finincial statements, the trustee5 are requlrÈd to.. 5elpct 5Uitable 3ccDunting policies afid then apply them con51Stently observe the rnethods and principles in the Charities 50RP makè judgernents and estlm3tes that are reasonable and prudent state whethèr applicable UK Accounting Standards have been followed, subject to any material departuros disclosed and explained in the financial statements prepare the financial statements on the going concern basis unle$5 It Is inappropriate to presume that the chaflthble company will continue in operation The trustees are responsible for keeping adÈquate accounting recoids that di5c105e with reasonable Bccuracy at any time the finaniial P051tion of the charitable company and enable them to ensure that the financial 5tatemÈnts cornply with the Componies Act 2006. They are also responsible for safeguarding the assets of the charitable ¢otTTrpany and hence for taking reasonèblÈ steps for the prevention and deteition of fraud and other irregularitles. In so far a5 the trustèes are aware there Is no relevant audit information of which th? tharitable company's auditor is un3ware. The trustees havo takèn all steps that they ought to have taken to make themselves aware of any relevant audit inforTnatK)n and to establish th8t the auditor 15 aware of that information. Date 21 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 INDEPENDENT AUDITOR'S REPORT Opinion We have 8udited the financial statetnents of Acorn Early Year5 Foundation for the ye8r ènded 31 December 2022, which comprise the StÈtefflent of Financial Artivitie5 (including incorne and expenditure account), the Balance Sheet, the Statement of Cash Flows and notes to the financial statements including a summary of Significant accountln8 policie5. The financial reporting framework that has been applied in their preparation 15 applicÈble law 3nd Unlted Kingdom Accounting Standards, intludine FRS 102 The Financial Reporting St3ndard appliiable in the UK and Republic of Ireland (United Kingdotn Generally Accepted AccountlnE Practice). In our opinioTTr the financial 5tsteFnents.' give i true andfairviewcf the state of the ch3ritable CDmpany'5 affairsas at 31 Decernber2022, and of its incoming resources and application of resources, iTrcluding Its intome 3n(l expenditure, for the Year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements Df the Companies Act 2006. Basis for opinion WÈ tonducted our audit in accordance with International Standard5 on AuditinR IUKI 115As IUKII and applicable law. Our responsibilities under those standards are funher described in the Auditorfs responsibilities for the audit of the financial Statements section of our reptrrt. We are independent of the charitable company in accordance with the ethical requirements th3t ère relev8nt to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfillèd ourotherethical responsibilities in accordancewith these requirements. We believe thatihe auditevidence we h?ve obt8ined 15 sufficiefjt ènd appropriate to provide a ba515 for our oplnlon. Conclusions relating to going concern In auditing thÈ financial statements. we have concluded that the trustees, use of the going CDniern ba515 of accounting in the preparation of the financial st8tempnt5 is appropriate. 8a5ed on the work we have performed, we have not identified any marerial uwertaintie5 relating to events or conditions that, individually or IDllectively, may cast slgnificant doubton the charitable COTnpanW5 ability to continue as a going concern fDr a period of at least twÈlve months frorn when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going coniern are descrlbed in the relevant sections of this report. Other information Theother inforMat￿n{0￿prtrSeS the information included in the tru5tEe5' annual report, otherthan the flnanclal statements and our auditols reporr. thereon. The tru5teesare re5pon5ible forthe oiher information cont3inÈd within the annual report. Our opinion on the financial staternents doe5 Trot cover the other information and, Èxcept to the exteTrt atherwise explicitly stated in our report. we do not express any ftrrm of assurance conclusion thereon. Our responsibilitv 15 to read the other Information and, In doing so, COD5iderwhetherthe other information is materially inconsistent with the finantiol statement5 or our knowledge obtained in the course of the audit or otherwise appe3r5 to be materially rni55taied. If we identify such rnaterial Inconsistencies or apparent m3terial misstatements, we arÈ rÈquired to determinè whether this givÈs rise to a material misstatement in the financial statements IhemsÈlve5. If, based on the work we have performed, we conclude that there Is a materi61 misstatement of this other Information, we are required to report ihat fatt. We have nothing to report in this regard. 22 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 INDEPENDENT AUDITOR'S REPORT {continued) Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in thÈ cDur5e of the audit.. the inforrnation given In the trustees. report for the financi31 year for which the financi31 statements are prepared is ionsi5tent with the financial 5tatementS,- 8nd the trustees. report has been prepared In accordance with applK8ble le881 requireTnents. Matters on which we are requlred to report by exception In the light of our knowledge and under5tsnding Df the charitable company and it5 environment obtained in the course ol the audit. we have not identifie(I materi81 misstatements in the trustee5' report. We have nothing to report in respect of the following matters in relation to which the Companiès Act 2c￿6 requires us to report to you if, in our opinion.. adequate accountinE records have not been kept, or returns èdÈquate for our audit have not been received from branches not visited by us.. or the financi81 statements are not In 3Br••mAnt with th@ accountin8 focord5 and returns,- or certain disclosures ol directors, rÈmunerotioD specified by law are not made,. or we have not rece5ved all the information 2nd Èkplanations we require forour audit,. or The trustees were not entitled to prepare the financial statements In accordance with the small companles, regime and did not take advantage of the small companie5, exemptions in preparing the director5, report and from the requiiement to prepare ? strategic report. Responsibilities of trustees As exp131ned more fully inthetrustees, responsibilitie5 5taternent ser out Dn page 21. the trustees Iwho are o150the directors of the charitable company for the purposes of company lawl are re5POn51ble for the preparation of the finanri315tarements and for being 58tisfiÈd thatthey give a true and fair view, and forsuch internal control a5 the trustees determine is necessary to ènable the preparation of flnancial statements that arÈ free from materSal misstatèment, whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessingthe charitable conipanf s abilityto continue as a goingcon¢ern, disclosing, 35 appllcable, matters related to going concern 8nd usin8the goingconcern basis of a¢countiDg unless the trustees either intend to liquidate the charitable compèny or to cease operatlons, or have no realistit alternative but to do so. Auditor's responslbllltles for the audit of the flnancial statements Our objectives are to obtain reasonable assurancè about whetherihe flnancial staternents as a whole arÈ free from rnaterial mi55titement, whether due to fraud or error, and to 155ue an 3uditorfs report that includes our opiniDll. Reasonable assurance is a hi8h level of a55urance but 15 not a gu8rantee that an audit conductèd in accordance with ISAS IUKI will always detect a rnaterial misstaiement when it exi5t5. M15Statement5 can arise from fraud or error and are considèrpd rn3terial if, Individu311y or In the a8gre£atè, they could reasonably be expected to Influence the econotnic decisions of users taken on the basis of these financial statÈment5. Irregularities, including fraud, are in5tèntes of nonns and tax legislation We Èvaluated manaEement'5 incentive5 and opportunitie5 for fraud￿rent manipulation of the finantial st3temeTrt5 and the financial report (including thÈ risk of override of cantro151, and determined that the principal ris￿ were related to posting Inappropriate entries includingjournalsto overstate revenue or understate expenditure and management bia5 in accounting estimate5. Audit pruce(lures performed by the engagement team included.. di5CU55iOn5 Wlth mana8Èment, including considpration5 of known or suspetted instances of non- iornpliance with laws and re8ulation5 and friud.- gaining an understanding of TTTranagernent's contrts15 designed to prevent and detect Irregularities,. idontifying 2nd t•$tin8journal entri•s,- and Obtaining the latest Ofsted report5 and ensuring thère were no areas of concern or no measures enforced. Owing to rhe Inheient lirnitatiOn5 of an audit, there is an unavoidablp risk that we rnay not have detected sotne tnaterial mi55tatements In the financial statements, even thou8h we have properly planned and performed our audit in 3ccDrdonce with auditing standards. For exotnple, Ihe further reTnoved non-compli3nce with13W5 and regulations lirregularitie51 15 from the events and transactions retlected In the finantial 5tateYnents, th￿ le55 likely the inherently limited procedures required by auditing stanclards would identify it. In addition, 05 With any audit, there rem3ined a highÈr risk t>f non-derection of irre8uloritie5, a5 these may Involwe collusion, forgery, intentional omissions, misrepresentation5, or thè override of intèrn31 contro15. We are not responsiblÈ tor preventing non- COTripliance 8nd cannot be expected to delect non-¢ornpliance with all laws and regulations. A further de5criptioTTr of our rÈsponsibilitre5 is available on the Financial Reporting Council's websitÈ at.. https.'// www.frc.org.uk/avditorsresponsibilitiÈs. This description forrns part of our auditor's report. Use ofour report Thi5 report is made 501ely to the charitable companls members, os a body, in accordante with Chapter 3 of Part 16 of the Companles Act 2006. Our audit work ha5 been undertaken 50 that we might State to the charitable companvs members those matters we are required to statÈ to thern in an 3udito¢s report and for no other purp05e. To the fullest extent permitted by law, we do not accept or assume re5pon5ibility to anyone other thzn the charitable company and its meTnber5 as a body, for our audit work, forthi5 report, orforthe opinions we have formed. IL Jll U/ Steve Robinson FCA Senior Statutory Auditor For and on behalf of Mercer & Hole LLP Chirtered Accountant5 and Statutory Auditors Silbury Court 420 Silbury Boulevard Central Milton Keyne5 MK9 2AF 4 May 2023 24 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 STATEMENT OF FINANCIAL ACTIVITIES {INCLUDING INCOME AND EXPENDITURE ACCOUNT) Note Unrestricted Funds Re8tri¢ted Funds Totsl 2022 Total 2021 Income and Expenditure INCOME.. D￿al￿on$ and legacies 4,295 4,295 5,488 Incotne from charitable activities 9,401,286 170,255 9.571,541 8,160,227 Investment income 17 Total Income 9.405 598 170.255 9,575,853 8,165.719 EXPENDITURE.. Expenditure on charitable activities 9,413.043 155.642 9.568.685 8,005,703 Total Expenditure 9,413,043 155.642 9,568,685 8.005.703 Net incomellexpendlturel movement in funds for the year 17.4451 14,613 7,168 160.016 Rèconciliation of fun(b Total fund5 brought fotwaid 544,081 5,933 550,014 389,998 Total funds earried forward 536,636 20.546 557.182 55Q,014 The Staternent of Financial Activities includes all gains and losses recognised In the year All income and expendiluie derive from continued activities. The accompanying accounting policies and notes fom an integr81 part of the financial statements. The 2021 comparative includ&s both ieslricled and unrestricted funds, a breakdown of the comparatives can be found in note 22 to these financial statements 25 ACORN EARLY YEARS FOUNDATION Finèncial statements for the year ended 31 December 2022 BALANCE SHEET Note 2022 20Z1 Fixed Assets Intangible assets Tangible assets 181,133 972,347 1,153.480 228.038 826,769 1,054,807 12 Curr8nt Assets Stocks Dèbtors Cash at bank and In hand Totsl Current Assèts 10,776 14S,033 232.976 389,785 13 183.586 146,036 329,622 Creditors.. Amounts falling due within one year 14 1828,5261 1705,9031 Net Current Lrabilities 1498,9041 1316,1181 Total Assets loss Current Liabilities 654,576 738,689 Creditors.. Amounts falling due after one year 15 197.3941 1188,6751 Net Assets 557, 182 550.014 The funds of the charity Restricted Funds General Unrestricted Fund5 Totsl Charlty Funds 18 20,546 536.636 557,182 5.933 544,081 550.014 Approved by the Board ol Trustees on ,[ ,12025 Trustee Company number= 07703801 26 ACORN EARLY YEAR5 FOUNDATION Financial statements for the year ended 31 December 2022 STATEMENT OF CASH FLOWS Note 2022 2021 Net cash used in operating activitiés 20 378,420 322,515 Cash flows from invg8trng activities Purchase of tangible fixed assets 1361.6701 1240,154} Net cash used in investing activities {361,6701 1240,1541 Cash tlows from financing activities Inv85tment income Repayment of borrowings Interest paid 185,5511 {18.1561 {180.1811 123,526) Not cash from financing activities I103,6￿) 1203.7031 Decrease in cash and cash equivalents in the year 186.9401 1121,3421 Cash and cash equivalents at the beginning of the year 232.978 354.318 Cash and cash equivalents at the end of the y•ar 146,036 232.976 Analysis of changes in net debt 1 January 2022 Cash flows 31 De¢*mber 2022 Cash al bank and in hand 232,976 186,9401 146,036 Borrowings 1274,2261 141,2501 85.551 11,389} 1188,6751 142.6391 27 ACORN EARLY YEARS FOUNDATION Financial statement5 for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 1. Awgunting Policies The prinapal accounting pols¢ies adopted, judgemènts 2nd key sources of estimation uncertainty In the preparation of the financial statements are sel out below. These policies have been consistently applied to all years presented unless otherwise slated. al Basis of preparation Acom Early Years Foundation is a charitable company limited by guarantee registeied in England and Wales. In the event ol the Charity being wound up, the liability in respert of the guarantee 15 limited to £10 per membei of the Chanty The address ofthe registered office is given in the Reference 8ncl Administrative Detai15 on page 3 of these financial statements. The nature of the charity's operations and principal activity is the provision of childcare in nurserie5, Out of school clubs and ftsrest schools The finanaal statements have been prepared in accordance with Accounting and Reporting by Charities.. Slsternenl of Recommended Practi￿ applicable to charities prepanng their accounts in accordance with the Financial Reporting Standard applicable in Ihe UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republio ol Ireland IFRS 1021. the Charilies Act 2011, the Cornpanies Act 2006 and UK Generally Accepted Accounting Praclce Acorn Earty Years Foundation meels the definition of a public benefit entrty under FRS 102. Assets and liabilities are initially recognised at historirAI cost or transaction value unless otherwise stated in the relevant accounting policy notes. The finanual statements are prepared on a going con￿rn basis under the historical cost convenlitsn. modified lo Include certain items al fair value. The financial staternents are presented in sterling which is the functional currency of ihe Charity and rounded to the nearest £. bl Prep8T8tion of the accounts on a going concem basis The tiustees received regular financial reports throughout the year, and cash flow forecasts weie updated and regularly reviewed by the Finance. Audit and Risk cornmittee. The plans foi the new nurseries were also sciulinised and monitored by the trustees. who remain confident in the ability of the managernÈnl team lo maintain the organisalion's financial viability- Accordingly. the trustees have continued to adopt the going concem basis of accounting in preparing the finanazl statements. cl Income Income is recognised when the Charity has entitlement to the funds, any performanTr conditions attached to the iterns of income have been met, it probable that the Incorne will be ￿Ceived, and the amount can be measured reliably Incorne trom government and other grants, whether'capital, grants or'revenue, grants, is recoonised whén the Charity has entitlement lo the furTrd5, any performance conditions attached to the grants have been rnet, il is probable Ih8t the incorne will be received and the amounl can be mea5ur8d reliably and is not deferred. Fee income is alloGaled lo the month to which it relate5. and the free entitlètneNt funding 15 allocated on the same basis, wvth poliaes In place lo ensure entitlement Is verified prior to hea￿C￿￿t datè5. dl Investment income Interest on funds held on deposit is included when receivable and the amount can be Tnea5ured reliably by the Chanty". this 15 normally upon notffication of the interest paid by the Bank 28 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 1. A0￿UntIng Polioes Icontinuedl el Fund accounting Unrestricted fijnds are av8ilablÈ to spend on activities that further any ol the purposes ol the Charty. Designated funds are unre5tiicted funds of the Charity which the trustees have decided al their discretion to set aside to use for a specific purpose. Restncted funds are donations which the donor has specified are to be solely used for particular areas of the Charity's work or lor specific projects being undertaken by the Ch8rity. fj Expenditure Expenditure is recognised once there 15 a leg81 or constructive obligation to make a payrnenl to a Ihird party, rt is piobable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under Ihe following activity héadings.. 1. Cost of raising funds comprises the costs of activities outside the re9ular operation of the nurseries, forest schools, catering and training dttpartment. 2. Expenditure on charitable activities comprises the costs of comrnercial trading induding the running of the nurseries and their associaled costs. Irrecoverable VAT is chargèd as a cost against the activity for which the expenditure was inwrred. gl Govemance costs Governance costs are those fvnclions that assist the strategic work of the Charity bul do not directly undertake charitable actrivitse5. These costs have been allocated le expenditure on charitable activitiès. Govemance costs are set out in note 8. h) Employee bènèfits The costs of short-tem employee benefits are recognised as a liability and an expense. unless those costs are required to be recognised as part of the cost of stock or fixed assets. The Gosl of any unused holiday enlillement is recognised in the period in which the employee's 8ervicEs are ieceived. Termination benefrts are iecogni5ed immediately as an expense when the Charity is demonstrably committed to terminate the etnployment of an ernployee or to provide teirnination benefits. il Operating leases Renta13 applicable to operating leases where substantially a11 the benefits and risks of ownership remain with the lessor ale charged to the Statement ol Fin8ncial Activities on a straighl-line basis. jl Finance leases Assets held under hire purchase agreements are capitalised and disdosed under tangible fixed assets at their fair value The capital element of the future payments is treatèd as a liability and the interest is charged to the Statement ol Financial Activities on 3 slraighl-line basis. 29 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 1. Accounting Polittes l¢onlinuedl kl Tangible fixed assets Individual fixed assets are capitalised at cost and are depreaated over their useful econolnic lives on a straight-line basis as follows.. Asset Category Annual rate Leasehold Improvements OffiTh Equipment Fixtures and Fittings Motor Vehicles Play Equipment Lower of 10.10 ol cost and length of lease 20Yo - 33.3 /• cif cost 20'A of cost 20U/o of ¢¢xs1 11 Intangible fixed assets Intangible assets acquired separately from a business are recognised at C05t and are subsequently measured at Cost less accumulated amDrtisation and accurnulated impairment losses. Intangible assets acquired on business combinations are recognised separately from gtsodwill at the acquisition date if the fair value can be measured ieliably. All intangible fixed assets are amor￿Sed on a slraight-line basis over the estitllated economic life of 1 D years. ml Stock Stock is included at the lower of cost or nel realis2ble value. In the year the treatment of small sundry stock items w85 deeffled lo be a prepayment,. this change in treatment has not necessitated a restatement of comparatives. n) Debtors Trade and other debtors are recognised al the settlemenl amount due after any trade discount offered. Prepayments are valued al the amL>unt prepaid net of any trade discounts due. ol Cash at bank 2nd in hand Cash al bank and cash in hand InGludes cash and short tem highly liquid investments with a short maturity of three rnonth5 01 less ftorr the date of acquisition or opening ol the deposit or similar account. pl Creditors and provisions Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that wll probably result in the transfer of funds to a third party and the amo>unt due to settle the obligation can be mea5vred or estimated reliably. Creditors and provisions are norrnally recognised al their 5ettletnenl amount after allowing for any trade discounts due. ql Fin8ncial instruments The Charity only has financ￿1 assets and finana81 li3bilits.es of a kind that Qualify as basic fin8nc4al instruments. Ba51c financial instruments are initially reco9nised at transaction value and subsequently rneasured at their settlement value wth the exception of bank loans whrh are subsequently measured at amortised cost using the effective interest method. 30 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS Accounling Polities Icontinuedl rl Pension costs The Charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the Charity. The annual contributions payable are eh8rged to the Statement ol Financial Athvrties The Charity is also part of the Bucks CC LGPS which is a defined benefit scherne. The Charity has thie8 employees in this scheme. Bucks CC LGPS has confirmed that when the Gharily took over these nurseries. the portion of the LGPS relating to itwas transferred at no deficitlno surplus. As there is no deficit. a valuation has not been obtained under FRS 102 section 28. The payments have been expensed in the 3ame way as that of defined contribution schetne payrnenls. sl Taxation The charity is an exempt charity within the meaning of schedule 3 of the ch8riliesAct 2011 and is considered to pass the test5 set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it mèets the definition ol a charrtable company for UK corporation lax purposes. Judgements and key sources of eslirnalion uncertainty In the applicabon of the th8rrtable a)mpany's accounting policies, the trustees are required lo make judgements, eslirnales and assumptions about the carrying amount ol assets and liabilities that are not readily apparent from other 80urce5. The estimates and assoaated assumptions are based on histoncal experience and other factors th8t are considered lo be relevant Actual results may diffei from these estimates. The eststnates and undedying assumptions are reviewed on an ongoing basis. Revisions to accounting estimate5 are recogTri5ed in the peiiod In which the estimate is revised where the revision affects only that period. or in the period of the ￿vISI(1) and future periods where the revision affects both current and future periods, 3. Legal status of the Charity The tharity is a Company limited by guarantee and has no share capital. In the event of the charitable company being wound up. the liability in respect of the guarantee is limited to £10 per member of thè Charity. 4. Income earned from donation5 and legacies Unrestricted Funds Restricted Funds Totsl 2022 Totsl 2021 Donations 4,295 4,295 5,488 4,295 4,295 5,488 In 8GfDrdan¢e with FRS 1C>2 and the Charities SORP IFRS 1021. the econornic contribution of general volunteers is not recognised in the accounts. 31 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 5. Incorne from charitable activities Unrestricted Funds Restricted Funds Totsl 2022 Total 2021 Childcare income 9.192,591 170.255 9,362.846 7,708,752 Training courses 34,293 34.293 28,071 Forest school act￿l￿.eS 77,187 77,187 59,354 Catering incorlle 59,428 59,428 98,072 Consultancy income 1,974 1,974 1.060 JRS grant Income 1(￿,101 Other income 35.813 35.813 155,817 9,401.286 170,255 9,571,541 8.160,227 Local authority grants tot811ing £2.326.514 12021.. £2,083,398) receNed relates to the 2 year old offer and the Early Years Funding for all 34 year olds. Restricted local authority grants of £93,37012021.. £64,893) relate lo deprivation funding, inclusion and disability a¢ffss funding giants. Further infowation on restricted funds can be found in note 18. 6. Investment Income wmprises bank interest income. 32 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 7. Analysis of expenditure on Charitab￿ activities Unrestricted Funds Restricted Funds Toial 2022 Total 2021 Childcare costs 8,023,398 155,642 8.179.038 6,836,377 Training course costs 79,214 79.214 60,257 Catering costs 159,383 159.383 147,29D Forest school actwities costs 92.183 92.183 79,461 Propety and administration 984,088 984,088 827, 177 Accountancy fees 4,440 2,542 Auditor's remuneration 8,180 8.160 6,25f) Legal and professional fee5 34,132 34.132 15.834 Other finanaal costs 28.049 28.049 30,515 9.413,043 155,$42 9,568,685 8.005.703 Net income I lexpendilurel for the year Thls is stated after charging.. 2022 2021 Depreciation 216.092 1 S7.814 Atnorti5ation 46,905 46,905 Operating lease payments 493,756 423,955 Auditorfs remuneration". Audit fees 8,160 6,250 Accountancy services 4,440 2,542 33 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 8. Net income I (expenditure) for the year Icontinuedl Analysis ol govemance costs 2022 2021 Audit fees 8,160 6,250 Trustees, expenses 146 Consultancy fees 5,924 14,230 6,250 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel 2022 2021 Salaries and wages 6.418,608 5,391,81 D Social secunty costs 433,235 343.831 Pension costs 277,772 226.238 7.129,S15 5,961.879 One employee had employee benefits in exTrss of £60.000, with total employee benefits excluding employei pension costs lallifig within the band of £100.001 10 £110.00012021. one employee falling within the band of £90,001 to £100,0001. Pension costs are allocated to activities in proportion to rhe related staffing costs incurred and are wholly charged to unrestricted funds. The Chaiity trustees were not paid or received any other benefits from employment with the Charity in the year 12021". £nill. Trustees were reimbutsed expenses during the year totalling £14612021". £nill. The amount ol consultancy fees paid to trustees in the year was £nil12021." £nill. The key managèment personnel of Ihe Charity o)mprise the trustees, who ￿Ceive no remuner8tion, the Chief Executive Officer, and the Senioi Leadership Team ISLTI The total erllployee benefits of key management personnpl tsf the Charity were £386.27612021.. £381,609). 34 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 10. Sltff numbers The average monthly nurnber of persons lincluding directors) employed by the Charity during the year was as follows.. 2022 2021 Number Number Total staff 408 341 408 341 11. Intangible fixed assets Goodwill Cost As at l January 2022 AdditlOn5 Disposals As at 31 December 2022 470,732 470,732 Amorts'sation As at 1 January 2022 Chaige for the year Amort15ation c>n disposals As at 31 December 2022 242.694 46,905 2e9,599 Nèt book valuè As at 31 December 2022 181,133 228,038 As al 31 December 2021 35 ACORN EARLY YEARS FOUNDATION Financial statement5 for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 12. Tangible fixed assels Leasehold Office Improvements Equipment Fixtures & Fittings Motor Play Vohic18s Equipment Total Cost As at 1 January 2022 Additions Disposals As al 31 December 2022 976,201 210,017 71,637 33,199 280,294 68.222 30,989 11,637 77,207 1,436,328 38,595 361.670 1.186,218 104,836 348.516 42,626 115,802 1,797,998 Depreciation As at 1 January 2022 Charge for the year On disp058ls As at 31 Décèmbèr 2022 291,877 154.691 68,665 7,623 176,932 34,800 21,502 4.772 50.583 14,2C 609,559 216,092 446.568 76.288 211.732 26,274 64,789 825.651 Net book value As at 31 December 2022 As a131 Deoembei 2021 739.650 684,324 28,548 2,972 136,784 103,362 16,3S2 9,487 51,013 26,624 972,347 826,769 13. Debtors 2022 2021 Trade debtors 22.313 12,446 Other debtQFS 34,884 40.457 Prepayments 126.369 93,130 183,586 146,033 36 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 14. Gredilors.. amounts lalling due within one year 2022 2021 Bank loan 91,281 85,S51 Trade creditors 97.754 97.639 T8X8tion and social security 101,355 82,844 Othei creditors 493.563 418,731 Accruals 44,573 21,138 828.526 705,903 Acorn Eady Years Foundation operates a defined contribution pension scherne for all eligible staff. Outstanding contributions awarting payment at the 31 December 2022 were £48,13812021." £35.7451. In 2020 the charity borrtswed £380,000 from The Charities Aid Foundation Bank plc. Thi5 loan is secured with 8 fixed and flcialing charge over all the Charity's assets and rep8yable over four years from September 2020 at an interest rate of 6.50/0 above the base rate. after a six month capital an(J repayment holiday. At 31 DeTrmber 2022 the loan balants outstanding 15 £188.67512021.. £274,226). 15. Credilors.. atnounts falling due after we year 2022 2021 Bank Loa 97,394 188,675 97.394 188.675 37 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 16. Deferred Income Included within other creditors are balan￿S relating to défeii8d income Deferred incorne comprise fees and grant income ieceipls related lo finanaal year 2023. 2022 2021 8818nce a5 at 1 January 357.115 439,479 Amounts released lo income earned from charitable 1357.1151 1439,4791 Amount deferred in year 414,709 357,115 Balance as 8131 December 414,709 357.115 17 Commitments under operating leases As 8131 December the Charity had annual commitments under non-cancellable operating le85es as set out below. 2022 2021 Propeity leases Other op•rating leases Property leases Other operating leases Total Total Arnounls payable wilhin 1 year 451.802 22,425 474.227 300.647 25,425 326.072 Amounts payable between 2 10 5 years 1,668,329 28,849 1,697,178 1,020,516 33.460 1.053,976 Amounts payab￿ after 5 1,008,370 year5 1,008.370 448,115 448.115 3,128,501 51,274 3,179,775 1,769,278 58.885 1,828.163 In addition lo the cornmilmenls under operating leases shown above, the Charity has in place an operating lease comrnitln8nt for an arnounl 01£13,200 per annum12021. £13,200) with no Specified end date. 38 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 18. Analysis of charitable funds Analysis of movements in unrestricted funds Balance at Balance at 1 January 2022 Income Expenditure 31 Dèeember 2022 General Unrestricted Funds 544 081 9,405,598 19,413,043) 536,636 Designated Funds Totsl 544.081 9,405,598 19.413,0431 536,636 Analysis of movements in unrestricted funds. previous year Balance at Balance at 1 January 2021 Income Expenditure 31 Decembor 2011 General Un￿$triCted Funds 385.178 6.098,626 17,939,723) 544,081 Designated Funds Total 385.178 8,098,626 17,939.7231 544.081 Name of unrestricted fund De$¢ription, nature and purposes of the fund General Unrestricted Funds The Yree ieserves, lo cover normal fluctuations of working capital. Designated Fund5 Funds set aside by the trustees for specific purposes. There are no designated fund5 during the year. 39 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENT5 18. Analysis of charitable funds Icontinuedl Analy$i$ of movements In ￿trIcted funds Balance at Balance at 31 December 2022 1 January 2022 Income Expenditure MKC Jubilee Wood deprivation Reslricled Higher Needs & DAF Mulbèrry Bèar RÈ$èrvÈ Enjoy Beneffit dtsnations MKC Hedgerows deprwalion MKC Rowans deprivation 5,933 13,884 116,9181 2,899 59.382 75.485 1,400 10,737 9.367 159,3821 {72,7171 11,2001 13.4251 12.0001 2.768 200 7,312 7,367 Total 5,933 170,255 1155.6421 20,546 Analysis of movements in re$tri¢ted lund$- previgus year Balance at Balance at 31 December 2021 l January 2021 Incoffle Expendrtu MKC Jubilee Wood deprivation funding Enjoy Benelits Shenley donations Enjoy Benefits Kents Hill donations Teds Kents Hill dona￿n$ 4,620 12,218 110,9051 5,933 200 800 I1,(￿0) 14001 11,0001 152,6751 400 1,000 52,675 DAF Funding Total 4,820 67.093 165,9801 5.933 Name of restricted fund Descrlption. nature and purposes of the fund Enjoy Benefits donations Parents use the childcare voucher offer from Enjoy Benefits and in relurn the nursery receives payments from the cornpany. Restricted Higher Needs & DAF The charity retsives Disability Access Funding IDAFI and Restricted Higher Needs funding for children who meet these criterion. This type tsf funding varies ye8r on yèar depènding on the children attending the nursenès. 40 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 18. Analy51s of charitable knnds Iconlinuedl Mulberry Bear Reserve Mulberry Bear was an existing nursery (under a different charity- Mulbeiry Bear Day Nursery and Pr&Schooll that has now been taken over by the charity. In this proce5S. the charity received the closing bank balance from (he nursery which was subsequently restr￿ed to expenditure on this site only. Deprivation Funds The purpose of the funds is to Increase the leamiNJ opportunities and irnprove achievement of the children in areas of deprNation. This can be done via enhancing indoor and ouldoor18aming environrnenls to InC￿3se wellbeing and leaming opportunitie5. 19. Analysis of net assets be￿een funds Analysis of net asset movements befvleen funds Fixed Assets Not Liabilitie¥ Total 2022 Total 2021 Restricted Funds 20,546 20,546 5,933 General Unrestrirted Funds 1,153,480 1616,8441 536,636 544,081 1,153,480 1596,2981 557,182 550.014 Analysrs of net asset movements between funds . prevlous year Fixgd A¥8ets Net Liabilities Total 2021 Total 2020 Reslricled Funds 5,933 5,933 4.820 General Unrestri¢led Fund5 1,054,807 1510,7261 544,081 385.178 1,054,807 1504.7931 550.014 389,998 41 ACORN EARLY YEARS FOUNDATION Financial statement5 for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 20. Reconciliation of nel movement in funds lo nel cash flow from operating activities 2022 2021 Net movement in funds 7,168 160,016 Add back depreciation tharge 216,092 167.814 Add back amortisalion charge 46,905 46,905 DeduGt bank interest received 14} Add back108n interest L)aid 18,156 23.526 Decreasellincieasel in 510 10,776 14.7191 Ilncreasel in debtors 137,5531 122,4841 Decrease I lin¢rea$el in creditors 116.893 148.5391 378.420 322.515 21. Related party transactions Reimbursements to Iruslees 101 Iiavel expenses are disclosed in note 8. and trustees with children attending Acorn settings paid full fees. Th15 totalled £20,061 12021." £10,169) with a further £654 being paid in advance for 2023 childcare 12021.. £nill. Acorn Nursery Properties Limite¢ IANPI. the landlord lor ttvo of the nursery buildings, is a ￿lated paty as the CEO (key management personnel) is the rnaiority shareholder in ANP ANP charged rent to the chanty of £69,00012021'. £69,000). The charity charged ANP £60012021. £6001 for book- keeping services. 42 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2022 NOTES TO THE FINANCIAL STATEMENTS 22. Cornparalive Sialement of Finanaal Activities Unrestricted Funds Restricted Fund$ Total 2021 In¢ome and Expendlture INCOME.. Oonalion5 and legacies 5,488 5,488 Income Irom charitable activrties 8,093.134 67,093 8,160.227 Investrnenl Income Total Income 8,098.626 67,093 8,165,719 EXPENDITURE= Expenditure on charitable activities 7,939,723 65,980 8,005,703 Total Expenditu 7,939,723 65,980 8,005,703 Net income Ilexpenditurel movement in funds tor the year 158.903 1,113 160,01 S Reconciliation of funds Total funds brought forward 385,178 4,820 389.998 Total funds carried forward 544,081 5,933 550,014 43