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2021-03-31-accounts

Company registration number: 06252914 Charity registration number: 1149802

Towers Tiny Tots

(A company limited by guarantee) Annual Report and Financial Statements

for the Year Ended 31 March 2021

Michael Wood Chartered Accountants 22A Bank Street Ashford Kent TN23 1BE

Towers Tiny Tots

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 4
Statement of Trustees' Responsibilities 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 16

Towers Tiny Tots

Reference and Administrative Details

Trustees E Adams T A Adams R L Bryant Y D Freeman T Pollard Secretary Y D Freeman Principal Office The Towers School Faversham Road Kennington Ashford Kent TN24 9AL The charity is incorporated in England and Wales. Company Registration Number 06252914 Charity Registration Number 1149802 Independent Examiner Michael Wood Chartered Accountants 22A Bank Street Ashford Kent TN23 1BE

Page 1

Towers Tiny Tots

Trustees' Report

The directors and trustees present their report and financial statements for the year ended 31 March 2021. This report also contains a directors' report, as required by company law.

Governing document and legal status of the charity

The charity is constituted as a company limited by guarantee and therefore governed by a Memorandum and Articles of Association. The company was incorporated on 18 May 2007 and adopted new Articles on 4 October 2012. The company was registered as a charity by the Charity Commission on 19 November 2012.

Objects

The objects of the charity are, for the public benefit, to advance and enhance the development and education of children primarily under statutory school age by:

(a) encouraging parents and carers to understand the developmental and educational needs of their children and considering with them the ways in which those needs may best be met;

(b) offering appropriate play, education and care facilities through the carrying on of child care centres for children between the ages of 3 months and 11 years, ensuring that opportunities are provided to all children, whatever their ability, ethnicity, gender, sexual orientation, belief or means; and

(c) promoting public interest in and recognition of the developmental and educational needs of children under statutory school age.

Principal charitable activity

The principal charitable activity of the charity is the operation in Ashford, Kent, of a children’s day nursery and a children’s pre-school. The charity also operates a holiday play scheme and after-school club from the premises where the pre-school is located. All activities are carried out for the public benefit.

Page 2

Towers Tiny Tots

Trustees' Report

Developments and achievements during the year

The Charity continued the operation of its nursery and pre-school settings for the year ending 31 March 2021. However, during this year operations at both settings were impacted from restrictions relating to the Covid-19 pandemic. In March 2020 it was announced there would be a nationwide lockdown in the UK to control the spread of Covid-19, with people working from home and with educational settings, including early years, to be closed to all but the children of key-workers and vulnerable children.

With the reduced requirement for childcare places the Charity took the difficult decision to temporarily close the pre-school setting, afterschool club and holiday club from 1 April 2020. The nursery setting remained open to ensure childcare places were available for key workers and vulnerable children of both settings and the local area, albeit with a much-reduced capacity and workforce requirement. With restrictions easing from 1 June, the nursery gradually increased its capacity and returned to normal operations from 1 September 2020. The pre-school and afterschool club both remained closed until 1 September 2020 when normal operations were resumed for the pre-school and afterschool club resumed with a slightly reduced capacity.

To help mitigate loss of income, from fee paying families, during this lockdown period the charity placed staff on furlough using the Coronavirus Job Retention Scheme for the months of April 2020 through to August 2020.

Since 1 September 2020, both settings have remained opened to all children including during subsequent lockdown restrictions in November 2020 and January through to March 2021.

The ongoing impact of the lockdown was that during the rest of year there was still a reduced demand for childcare places. The charity addressed this downturn in demand by temporarily reducing staff numbers at the nursery setting by attrition, and amending staff hours and rotas at the pre-school setting. However, waiting list places for children starting in September 2021 remain at near normal levels and the charity’s view is that during the new school year demand will gradually increase again to pre-pandemic levels.

During the year to 31 March 2021, the Charity received restricted funds for several projects at the pre-school and nursery that will take place during the course of the new financial year. These include:

• £2,162 from the Redhill Trust to go towards supporting children with their personal, social and emotional wellbeing at the pre-school;

• £1,050 from the Ashford Borough Council to build an outside sheltered area at the community hall for the pre-school.

Next year the Charity also has plans to refurbish the flooring at the nursery using surplus funds.

The charity continues with its strong links to Towers School Academy and Goat Lees Primary School, with support from trustee volunteers at both these educational settings. This facilitates strong links in our community and helps to ensure a smooth transition for those children leaving Towers Tiny Tots and starting their reception year at local primary schools. The pre-school setting also supports the parents of the Goat Lees Primary School, with the provision of a term time after-school club. During this year the provision of the holiday club was closed due to Covid-19, however, the charity has agreed to run this again in August 2021 supported with funding from the KCC reconnect programme and with a view to opening the club again in other school holiday periods if demand is sufficient.

The directors and trustees would like to thank the managers and staff for their continued hard work and dedication during this challenging year. It is with their efforts, along with the wider support from the local schools and community, that Towers Tiny Tots has been able to continue to provide a high standard of childcare for the children and families of the local area throughout this exceptional period.

Public benefit

The directors and trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to guidance published by the Charity Commission, including public benefit guidance.

Page 3

Towers Tiny Tots

Trustees' Report

Directors and trustees

During the year the following were trustees of the charity:

E Adams

T A Adams

R L Bryant Y D Freeman

T Pollard

Under the Articles of Association, the charity may by ordinary resolution appoint a person who is willing to act to be a director and trustee. The directors may also appoint a person who is willing to act to be a director. The Articles contain provisions requiring the retirement of directors by rotation.

The directors and trustees meet regularly and make decisions relating to, for example, the charity's strategies, policies and future plans. Day-to-day operational decisions are delegated to the managers at the two settings.

The remuneration of all staff is set by the directors and trustees.

New directors and trustees undertake a suitable induction procedure and are provided with appropriate opportunities for training.

Financial position

During the year the charity had net income of £10,574. Total charity funds at 31 March 2021 amounted to £99,999. The directors and trustees consider the financial position of the charity to be satisfactory.

Reserves

The reserves of the charity, being freely available income funds, at 31 March 2021 amounted to £91,647. It is the policy of the charity to maintain reserves at a level which enables the charity to continue its charitable activities and to ensure that the charity is able to meet any liabilities or other commitments it may have.

Auditors

The charitable company is exempt from the requirement to appoint auditors.

Small company provisions

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

The annual report was approved by the board of trustees of the charity on 12 November 2021 and signed on its behalf by:

......................................... T A Adams Trustee

Page 4

Towers Tiny Tots

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Towers Tiny Tots for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

Towers Tiny Tots

Independent Examiner's Report to the trustees of Towers Tiny Tots

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2021 which are set out on pages 7 to 16.

Responsibilities and basis of report

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

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

This report is made solely to the charitable company’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My independent examination work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for my independent examination work, for this report, or for the opinions I have formed.

Independent examiner’s statement

Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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

...................................... Michael Wood

Michael Wood Chartered Accountants Institute of Chartered Accountants for England and Wales

22A Bank Street Ashford Kent TN23 1BE

12 November 2021

Page 6

Towers Tiny Tots

Statement of Financial Activities for the Year Ended 31 March 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

2021

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Investment income
5
Total Income
Expenditure on:
Charitable activities
6
Total Expenditure
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16		 Unrestricted
£
1,289
336,549
208
338,046
(331,942)
(331,942)
6,104
220
6,324
89,145
95,469		 Restricted
£
4,470
-
-
4,470
-
-
4,470
(220)
4,250
280
4,530		 Total
2021
£
5,759
336,549
208
342,516
(331,942)
(331,942)
10,574
-
10,574
89,425
99,999

2020

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Total Income
Expenditure on:
Charitable activities
6
Total Expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16		 Unrestricted
£
112
368,400
368,512
(365,710)
(365,710)
2,802
2,802
86,343
89,145		 Restricted
£
280
-
280
-
-
280
280
-
280		 Total
2020
£
392
368,400
368,792
(365,710)
(365,710)
3,082
3,082
86,343
89,425

All of the charity's activities derive from continuing operations during the above two periods.

The notes on pages 9 to 16 form an integral part of these financial statements. Page 7

Towers Tiny Tots

(Registration number: 06252914) Balance Sheet as at 31 March 2021

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
13
Creditors: Amounts falling due within one year
14
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
16
Unrestricted income funds
Unrestricted funds
Total funds
16		 2021
£
3,822
3,822
6,529
118,648
125,177
(29,000)
96,177
99,999
4,530
95,469
99,999		 2020
£
6,060
6,060
7,836
103,449
111,285
(27,920)
83,365
89,425
280
89,145
89,425

For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 12 November 2021 and signed on their behalf by:

......................................... T A Adams Trustee

The notes on pages 9 to 16 form an integral part of these financial statements.

Page 8

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2021

1 Charity status

The charity is a charitable company incorporated in England and Wales which is limited by guarantee and does not have a share capital. Each of the members is liable to contribute an amount not exceeding £100 towards the assets of the charity in the event of liquidation.

The company's registered office and the location of its principal place of business is:

The Towers School Faversham Road Kennington Ashford Kent TN24 9AL

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition, effective 1 January 2019) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Towers Tiny Tots meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The presentation currency is sterling, rounded to the nearest pound.

Going concern

The coronavirus restrictions had an impact on the local demand for childcare places for the school year starting September 2020. The trustees have addressed this downturn in requirements by reducing staff numbers by attrition, and changing staff hours and rotas.

The trustees foresee the reduced requirement for childcare continuing in the shorter term, but that demand for childcare will increase again, and consider that it remains appropriate for the financial statements to be prepared on a going concern basis.

Exemption from preparing a cash flow statement

The charity is a small charity and, in accordance with the Charities SORP (FRS 102), has not included a cash flow statement in these financial statements.

Fund accounting

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

Restricted funds are those granted or donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Page 9

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2021

Income and endowments

All income is included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Income from donations and grants, including capital grants, is included in incoming resources when these are receivable.

Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract.

Other income is accounted for on a receivable basis.

Expenditure

Expenditure is accounted for on an accrual basis. The irrecoverable element of VAT is included with the item of expense to which it relates.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements.

Government grants

The charity recognises government grants in income when the conditions attached to a grant are met, and the charity has reasonable assurance that the grant will be received. Where a government grant is unconditional then the charity recognises the grant in income when it is receivable. If a government grant is received before the conditions attached to it are satisfied, the grant is recognised as a liability, and only released to income once the conditions are met.

Tangible fixed assets

Tangible fixed assets are stated at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Improvements to short leasehold property Equipment

Depreciation method and rate Straight line basis over lease term 20% per annum straight line basis

Impairment of fixed assets

Fixed assets are subject to an annual impairment review.

Operating leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Pension costs

The company operates a defined contribution pension scheme. Contributions are recognised in the Statement of Financial Activities in the period in which they become payable in accordance with the rules of the scheme.

Page 10

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2021

3 Income from donations and legacies

Donations and legacies;
Donations		 Unrestricted
General
£
1,289
1,289		 Restricted
£
4,470
4,470		 Total
2021
£
5,759
5,759		 Total
2020
£
392
392

4 Income from charitable activities

UK Government grants
Fee income - Day Nursery
Fee income - Pre-School
Amounts receivable from Kent County Council for
funded places - Day Nursery
Amounts receivable from Kent County Council for
funded places - Pre-School
Other income - Pre-School
Other income - Day Nursery
Incentive for staff training		 Unrestricted
General
£
40,488
104,585
18,005
78,577
93,619
1,275
-
-
336,549		 Restricted
£
-
-
-
-
-
-
-
-
-		 Total
2021
£
40,488
104,585
18,005
78,577
93,619
1,275
-
-
336,549		 Total
2020
£
-
160,220
32,801
79,577
91,575
3,652
75
500
368,400

The UK government grants receivable of £40,488 (2020 £nil) are made up wholly of monies received under the coronavirus job retention scheme.

5 Investment income

Unrestricted
funds Restricted Total Total
General funds 2021 2020
£ £ £ £
Interest receivable and similar income;
Bank interest receivable 208 - 208 -

Page 11

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2021

6 Expenditure on charitable activities

Unrestricted

Unrestricted
Note
Wages and salaries
Staff NIC (Employer's)
Staff pensions (Employer's)
Staff training
Rent (operating lease rentals)
Rates
Light, heat and power
Insurance
Repairs and maintenance
Telephone
Activities, catering and incidentals
Computer software and maintenance costs
Printing, postage and stationery
Subscriptions
Sundry expenses
Travel and subsistence
Advertising
Staff entertaining
Payroll fees
Bad and doubtful debts
Bank charges
Depreciation of improvements to short leasehold
property
Depreciation of equipment
Governance costs
7		 General
£
254,893
10,882
4,146
368
11,138
-
3,872
2,391
6,503
1,730
16,316
434
2,618
2,218
2,745
-
333
30
1,053
202
639
855
2,191
6,385
331,942		 Restricted
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2021
£
254,893
10,882
4,146
368
11,138
-
3,872
2,391
6,503
1,730
16,316
434
2,618
2,218
2,745
-
333
30
1,053
202
639
855
2,191
6,385
331,942		 Total
2020
£
263,939
11,715
3,780
2,701
10,662
1,424
3,506
2,253
8,883
2,316
29,994
470
3,722
2,842
3,297
155
269
965
1,376
(798)
757
855
3,798
6,829
365,710

Page 12

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2021

7 Analysis of governance costs

Governance costs

Independent examiner's fee for accountancy services
Independent examiner's fee for examination of the accounts
Legal and professional fees		 Unrestricted
General
£
985
1,265
4,135
6,385		 Total
2021
£
985
1,265
4,135
6,385		 Total
2020
£
1,056
1,356
4,417
6,829

8 Trustees' remuneration and expenses

No trustees, nor any persons connected with them, received any remuneration or reimbursement of expenses from the charity during the year.

9 Staff costs

The aggregate staff costs were as follows:

Wages and salaries
Social security costs
Pension costs		 2021
£
254,893
10,882
4,146
269,921		 2020
£
263,939
11,715
3,780
279,434

No employee received emoluments of more than £60,000 during the year.

The average number of employees during the year was 19 (2020 - 24)

Page 13

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2021

10 Taxation

The charity is a registered charity and is therefore exempt from taxation.

11 Tangible fixed assets

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
12 Debtors
Prepayments
Other debtors
13 Cash and cash equivalents
Cash on hand
Cash at bank
14 Creditors: amounts falling due within one year
Other creditors
Accruals		 Improvements
to short
leasehold
property
£
84,670
-
84,670
81,253
855
82,108
2,562
3,417		 Improvements
to short
leasehold
property
£
84,670
-
84,670
81,253
855
82,108
2,562
3,417		 Equipment
£
47,074
808		 Total
£
131,744
808
132,552
125,684
3,046
128,730
3,822
6,060
2020
£
5,049
2,787
84,670 47,882
81,253
855		 44,431
2,191
82,108 46,622
2,562 1,260
3,417 2,643
2021
£
4,840
1,689
6,529
2021
£
1,026
117,622
118,648
2021
£
25,049
3,951
29,000
7,836
2020
£
67
103,382
103,449
2020
£
24,001
3,919
27,920

Page 14

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2021

15 Commitments

At the balance sheet date, the charity had total future minimum lease payments under non-cancellable operating leases of £23,550 (2020 £32,342), of which £7,850 (2020 £9,842) falls due within one year and £15,700 (2020 £22,500) falls due between one year and five years.

16 Funds

2021
Unrestricted funds
General
Restricted funds
Garden improvements fund
Personal, social and emotional
support fund
Garden shelter construction fund
Kitchen refurbishment fund
Total restricted funds
Total funds
2020
Unrestricted funds
General
Restricted
Garden improvements fund
Total funds		 Balance at 1
April 2020
£
89,145
89,145
280
-
-
-
280
89,425
Balance at 1
April 2019
£
86,343
-
86,343		 Incoming
resources
£
338,046
338,046
-
2,162
1,050
1,258
4,470
342,516
Incoming
resources
£
368,512
280
368,792		 Resources
expended
£
(331,942)
(331,942)
-
-
-
-
-
(331,942)
Resources
expended
£
(365,710)
-
(365,710)		 Transfers
£
220
220
-
-
-
(220)
(220)
-
Transfers
£
-
-
-		 Balance at 31
March 2021
£
95,469
95,469
280
2,162
1,050
1,038
4,530
99,999
Balance at 31
March 2020
£
89,145
280
89,425

Transfers from restricted funds to unrestricted funds arose during the year ended 31 March 2021 following the satisfaction of conditions attached to restricted funds, enabling them to be transferred to unrestricted funds, or to recognise that certain costs relating to specific purposes funded by restricted funds have been met from general costs incurred on charitable activities.

Page 15

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2021

17 Analysis of net assets between funds

2021

Tangible fixed assets
Current assets
Current liabilities
Total net assets
2020
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
3,822
120,647
(29,000)
95,469
Unrestricted
funds
General
£
6,060
111,005
(27,920)
89,145		 Restricted
funds
£
-
4,530
-
4,530
Restricted
funds
£
-
280
-
280		 Total funds at
31 March
2021
£
3,822
125,177
(29,000)
99,999
Total funds at
31 March
2020
£
6,060
111,285
(27,920)
89,425

18 Related party transactions

There were no related party transactions requiring disclosure in the year.

Page 16