**COMPANY REGISTRATION NUMBER: 08812259 CHARITY REGISTRATION NUMBER: 1157645**
**Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee Audited Financial Statements**
## **31 March 2022**
**Jackson & Jackson A trading name of Jackson Nicholas Assie Limited Chartered Certified Accountants & Statutory Auditors Suite 7, Meridian House 62 Station Road, Chingford London E4 7BA**
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Financial Statements**
## **Year ended 31 March 2022**
||**Page**|
|---|---|
|Trustees' annual report (incorporating the director's report)|**1**|
|Independent auditor's report to the members|**7**|
|Statement of financial activities (including income and||
|expenditure account)|**12**|
|Statement of financial position|**13**|
|Statement of cash flows|**14**|
|Notes to the financial statements|**15**|
# **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)**
**Year ended 31 March 2022**
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2022.
## **Reference and administrative details**
**Registered charity name** Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's) **Charity registration number** 1157645 **Company registration number** 08812259 **Principal office and registered** Brooke Road **office** Walthamstow London E17 9HJ **The trustees** Elaine James Laurence Jones Jessica Elliot Leann Valiquette James Kenyon (Retired 11 June 2021) Jennifer Matthews (Appointed 7 December 2022) **Finance Officer** Karen Millen **Auditor** Jackson Nicholas Assie Limited Chartered Certified Accountants & Statutory auditor Suite 7, Meridian House 62 Station Road Chingford London E4 7BA **Bankers** Lloyds Bank 182 High Street Walthamstow London E17 7JH
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 March 2022**
## **OBJECTIVES AND ACTIVITIES AND STRATEGIC REPORT**
## **Purposes and Aims**
Our Charity’s purposes as set out in the objects contained in the company’s Memorandum of Association are to:
- a) Provide a broad, balanced early days curriculum that considers children’s rights and needs: health, education and protection, fostering independence and self esteem and meet the Early Learning Goals and a supportive framework for children under five as laid down by the Department of Education;
- b) Support the education and well-being of children attending St. Mary’s Church of England Primary School, Brooke Road, Walthamstow and St. Saviour’s Church of England Primary School, Verulam Avenue, Walthamstow, by way of grants to the C of E Federated Schools of St. Mary’s & St. Saviour’s
The above purposes are the Company’s charitable purposes for the purposes of the 2011 Act. For as long as the Company is a registered charity, its purposes may only be altered with the prior consent of the Charity Commission and in accordance with any conditions attached to such consent.
The Charity has power to do anything which is calculated to further its charitable purposes or is conducive or incidental to doing so. In particular, the Company has power:
- (a) To work in partnership with parents, recognising that the education of a child is a shared task involving positive contributions from parents/carers, children and education workers;
- (b) To ensure that children are learning to express their own feelings, to develop their skills of co-operation, respect, negotiations and problem solving
- (c) To offer a secure, safe, welcoming environment which promotes stimulation and positive learning.
## **Ensuring our works delivers our aims**
We review our aims, objectives and activities on an annual basis. This looks at what we have achieved and the outcome of our work in the previous 12 months. This review helps us to ensure our objectives and aims remain focussed on our stated purposes.
## **The Focus of our work**
Our main objective continues to be to provide a broad and balanced Early Years Days education and to offer a safe, welcoming environment which promotes stimulation and positive learning.
## **How our activities deliver public benefit**
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.
Enter narrative such as - Through good quality child care and support we enable parents and families to maintain financial independence through work or to continue in further education. Some of our children are supported to remain in fragmented families through our extended care and support through Children in Need grants through the local authority. Children are able to learn and develop networks and skills whilst being looked after in a comfortable and safe environment.
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
**Year ended 31 March 2022**
## **ACHIEVEMENTS AND PERFORMANCE**
The Little Learners Nursery based in Brooke Road Walthamstow and also at Verulam Avenue site are nurseries which have been judged outstanding.
Our children achieve at the end of their time in the nursery a good understanding of basic literacy and numeracy and are able to socialise and interact with their peers and adults. Their learning and development is rigorous which means all children, including those with special educational needs or learning English as an additional language make significant progress in their learning and development. The staff work exceptionally well and involve parents in all aspects of their children’s care. This supports children’s wellbeing. Our Staff have effective links with other providers and agencies to seek specialised support as and when required.
The Forest School caters for the outside education of 3 – 4-year-olds. The Forest School is full and has a waiting list. The Forest School offers a unique opportunity for children to thrive in the outdoors and includes all sorts of educational outdoor activities which includes onsite tepees, ponds, mud kitchens, hammocks, fire pit, stone circle, tree climbing, willow arch, bug hotels, den making and alpacas.
Our nurseries at both sites have expanded from September 2022 and continue to thrive. We have waiting lists at both sites and are looking at the potential of opening a further nursery on the premises of our other schools within the Trust, St. Margaret’s in Barking. We are very excited at the prospect of opening a further nursery.
## **STRUCTURE GOVERNANCE AND MANAGEMENT**
## **Governing document**
The organisation is a charitable company limited by guarantee, incorporated on 12[th] December 2013, and registered as a charity on 30 June 2014. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.00
## **Recruitment and Appointment of Members of the Company**
The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members of the Company.
Due to the nature of working with children under the age of 5 much of the charity’s work focuses upon the under 5’s. With this in mind the Members of the Company seek to ensure that the needs of this group are appropriately reflected through the trustee body. We therefore ensure that our stakeholders, the parents, local community and church community are used to advertise for members to assist us using their own experiences with the under 5’s to assist with the Nurseries. Our current members are extremely knowledgeable in all aspects of the charity including financial and educational.
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 March 2022**
## **Risk Management**
The Members of the Company have, where appropriate, put in place systems to mitigate the risks which the charity may face. External risks to funding have led to the company purchasing a computerised system to ensure that the nursery is full to capacity in line with the Local Authority’s funding criteria for the early years free entitlement funding.
Internal controls risks are minimised by the implementation of procedures for authorisation of all transactions and projects. A robust system of accounts is in place which ensures that there is a sound practice of financial management.
Procedures are in place to ensure compliance with health and safety of children, staff, volunteers and visitors to the Nurseries. Safeguarding procedures are followed vigorously.
These procedures are reviewed annually to ensure that they continue to meet the needs of the Charity.
## **Organisational Structure**
The Little Learners have a committee of up to 5 members who meet at least annually and are responsible for the strategic direction and policy of the Charity. The committee members come from a variety of professional backgrounds all of which are relevant to the work of the Charity.
A Scheme of Delegation is in place and day to day responsibility of the provision of the services rests with the Managers at both nurseries ensuring that the Charity delivers the services specified and meets the Early Learning Goals and a supportive framework for children under five as laid down by the Department of Education along with the Chief Finance Officer and Finance & Development Manager seconded from the Genesis Education Trust ensuring that the finances and administration of the Charity are run to the highest standards. There is a clear management structure.
## **FINANCIAL REVIEW**
Our Nurseries are at full capacity and have a reserves fund following a financial risk assessment to take into account any dip in numbers during the Autumn months and for mobility reasons. This financial year we have had a small deficit due a non-budgeted expense of £25,971 from the London Borough of Waltham Forest for catering services from 2017.
The financial position of the charity can be found in the main financial statements and related notes in these accounts. At the end of the reporting period the charity had made a deficit of £4,268 (2021: surplus of £30,584. The charity is holding total reserves of £51,702 (2021: £55,970), all of which are unrestricted, at the end of the reporting period. The charity will aim to continue to build reserves, this will be monitored by the trustees on a regular basis.
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 March 2022**
## **RESERVES POLICY**
1. The Trustees recognise their responsibility to have a transparent policy on managing the resources of the company, including financial reserves. They acknowledge this as a requirement under the Statement of Recommended Practice: Accounting and Reporting by Charities.
2. The term ‘reserves’ is defined as that part of the charity’s funds that are freely available for general purposes and relates to income classified as unrestricted funds, which is available to spend on general charity purposes, once all its commitments have been met and its planned expenditure has been covered.
3. The Trustees believe that it is generally in the interests of the charity to work towards a position of holding reserves that would cover 2 months operating costs. This is to ensure adequate cash flow flexibility to meet emergency measures and unpredictable variations in expected income.
## **PLANS FOR THE FUTURE**
As we have already stated we are looking at opening a further nursery in Barking & Dagenham. We have expanded our current nurseries are looking at further expansion. Recruitment is becoming an issue for the Nurseries, and we have carried out market research to ensure we offer competitive rates of pay. We will be looking at our scales and also looking into recruiting further management posts to ensure the nurseries continue to offer an outstanding service.
## **Events after the end of the reporting period**
Particulars of events after the reporting date are detailed in note 23 to the financial statements.
## **Trustees' responsibilities statement**
- (a) the directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations and in accordance with United Kingdom Generally Accepted Accounting Practice;
- (b) company law requires the directors 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 charity and of the surplus or deficit profit or loss of the charity for that period;
- (c) in preparing the financial statements the directors are required to:
- (i) select suitable accounting policies and then apply them consistently;
- (ii) make judgements and accounting estimates that are reasonable and prudent;
- (iii) State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- (iv) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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_Jackson Nicholas Assie Limited Chartered Certified Accountants_
**Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_
## **Year ended 31 March 2022**
- (d) the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the charity and that enable them to ensure that the financial statements comply with the Companies Act;
- (e) the directors are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities; and
- (f) where appropriate, the directors are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website.
In the case of CA 06 Co.-s418(2) each of the persons who are directors at the time when the report is approved, the following applies:
(a) so far as each director is aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware; and
(b) each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information
## **Auditor**
Each of the persons who is a trustee at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
- they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
## **Small company provisions**
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' annual report was approved on 11 January 2023 and signed on behalf of the board of trustees by:
Elaine James Trustee
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_Jackson Nicholas Assie Limited Chartered Certified Accountants_
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Year ended 31 March 2022**
## **Opinion**
We have audited the financial statements of Little Learners Nursery Group (the 'charity') for the year ended 31 March 2022 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cashflows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the audited financial statements:
- give a true and fair view of the state of the charity's affairs as of 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom accounting standards, including FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements relating to the audit of the financial statements in the UK, including the Financial Reporting Standards (the ‘FRC’s) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In common with many other charities of this size and nature the auditors are used to assist with the preparation of the financial statements.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in preparation of the financial statements is appropriate.
Based on the work, we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor’s report is not a guarantee that the company will continue in operation.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)** _**(continued)**_
## **Year ended 31 March 2022**
## **Other information**
The other information comprises the information included in the trustees’ report, other than the financial statements and our auditors report thereon. The trustees are responsible for the other information contained within the trustees’ report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees' report (incorporating the Directors’ Report) for the financial year for which the audited financial statements are prepared is consistent with the audited financial statements; and
- the Directors' Report has been prepared in accordance with applicable legal requirements
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the audited financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the audited financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)** _**(continued)**_
## **Year ended 31 March 2022**
## **Responsibilities of trustees**
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements in accordance with the applicable financial reporting framework and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of audited financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor's Responsibilities for the Audit of the Financial Statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the audited financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the audited financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the audited financial statements, including the disclosures, and whether the audited financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)** _**(continued)**_
## **Year ended 31 March 2022**
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect or irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the charity’s industry and its control environment and reviewed the charity’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and others within the entity about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory frameworks that the charity operates in, and identified the key laws and regulations that:
– had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the Companies Act, Charities Act, Charities (Accounts and Reports) Regulations 2008, Health and Safety Act, employment law, pensions legislation, tax legislation, Bribery Act and Slavery Act; and
– do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate or to avoid a material penalty. These included the Charity Commission for England and Wales (Charity Commission) regulations, fundraising regulations and Anti-Money Laundering Regulations (including Proceeds of Crime Act 2002 and Terrorism Act 2000)
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our specific procedures performed to address them are described below:
– Recognition of grant income: this involves judgement around whether grants have performance conditions attached to them which must be met before income can be recognised, as well as judgement over whether or not those conditions have been satisfied. On a sample basis, we have assessed the judgements and estimates made by management in the recognition of this income.
– Appropriate allocation of restricted income: there is a risk that restricted income may not have been identified and allocated as such. We reviewed the allocation of income to restricted or unrestricted funds on initial recognition to ensure restrictions were appropriately identified and applied, and we reviewed fund transfers from restricted to unrestricted funds to assess the rationale for those movements.
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Independent Auditor's Report to the Members of Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)** _**(continued)**_
## **Year ended 31 March 2022**
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
– reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
– performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
– enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
– reading minutes of meetings of those charged with governance, reviewing internal management reports, reviewing correspondence with HMRC and with the Charity Commission.
## **Use of our report**
This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
**John Nicholas Assie FCCA (Senior Statutory Auditor) for and on behalf of Jackson Nicholas Assie Limited**
## **Chartered Certified Accountants and Statutory Auditors**
Suite 7, Meridian House 62 Station Road Chingford London E4 7BA
12 January 2023
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Statement of Financial Activities (including income and expenditure account)**
## **Year ended 31 March 2022**
|||**2022**||2021|
|---|---|---|---|---|
|||Unrestricted|||
|||funds**Total funds**||Total funds|
||**Note**|**£**|**£**|£|
|**Income and endowments**|||||
|Charitable activities|**5**|2,398,788|**2,398,788**|2,066,948|
|Investment income|**6**|13|**13**|14|
|Other income|**7**|600|**600**|82,850|
|||`────────────`|`────────────`|`────────────`|
|**Total income**||2,399,401|**2,399,401**|2,149,812|
|||`════════════`|`════════════`|`════════════`|
|**Expenditure**|||||
|Expenditure on charitable activities|**8,9**|2,403,669|**2,403,669**|2,119,228|
|||`────────────`|`────────────`|`────────────`|
|**Total expenditure**||2,403,669|**2,403,669**|2,119,228|
|||`════════════`|`════════════`|`════════════`|
|||`────────────`|`────────────`|`────────────`|
|**Net (expenditure)/income and net movement in funds**||(4,268)|**(4,268)**|30,584|
|||`════════════`|`════════════`|`════════════`|
|**Reconciliation of funds**|||||
|Total funds brought forward||55,970|**55,970**|25,386|
|||`────────────`|`────────────`|`────────────`|
|**Total funds carried forward**||51,702|**51,702**|55,970|
|||`════════════`|`════════════`|`════════════`|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
## **The notes on pages 15 to 23 form part of these financial statements.**
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Statement of Financial Position**
## **31 March 2022**
|||**2022**||2021|
|---|---|---|---|---|
||**Note**|**£**|**£**|£|
|**Current assets**|||||
|Debtors|**16**|**180,187**||164,097|
|Cash at bank and in hand||**83,186**||55,096|
|||`─────────`||`─────────`|
|||**263,373**||219,193|
|**Creditors: amounts falling due within one year**|**17**|**(211,671)**||(163,223)|
|||`─────────`||`─────────`|
|**Net current assets**|||**51,702**|55,970|
||||`────────`|`────────`|
|**Total assets less current liabilities**|||**51,702**|55,970|
||||`════════`|`════════`|
|**Funds of the charity**|||||
|Unrestricted funds|||**51,702**|55,970|
||||`────────`|`────────`|
|**Total charity funds**|**19**||**51,702**
`════════`|55,970
`════════`|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 11 January 2023, and are signed on behalf of the board by:
Elaine James Jessica Elliot Trustee Trustee
Company Registration Number: 08812259
**The notes on pages 15 to 23 form part of these financial statements.**
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
- 13 -
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Statement of Cash Flows**
## **Year ended 31 March 2022**
||**2022**|2021|
|---|---|---|
||**£**|£|
|**Cash flows from operating activities**|||
|Net (expenditure)/income|**(4,268)**|30,584|
|_Adjustments for:_|||
|Other interest receivable and similar income|**(13)**|(14)|
|Accrued expenses|**1,180**|59,846|
|_Changes in:_|||
|Trade and other debtors|**(17,270)**|(60,149)|
|Trade and other creditors|**48,448**|3,815|
||`────────`|`────────`|
|Cash generated from operations|**28,077**|34,082|
|Interest received|**13**|14|
||`───────`|`────────`|
|**Net increase in cash and cash equivalents**|**28,090**|34,096|
|**Cash and cash equivalents at beginning of year**|**55,096**|21,000|
||`────────`|`────────`|
|**Cash and cash equivalents at end of year**|**83,186**|55,096|
||`════════`|`════════`|
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
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**Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements**
## **Year ended 31 March 2022**
## **1. General information**
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Brooke Road, Walthamstow, London, E17 9HJ.
## **2. Statement of compliance**
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK & Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.
## **3. Accounting policies**
## **Basis of preparation**
The financial statements have been prepared on the historical cost basis.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Going concern**
The trustees have considered all relevant factors, including the long-term impact of COVID-19 on the charity's activities and have concluded there is no significant impact on the organisation.
It is therefore considered that the going concern status remains intact and there are no material uncertainties about the charity's ability to continue.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There have not been any judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There have not been any key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
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_Jackson Nicholas Assie Limited Chartered Certified Accountants_
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2022**
## **3. Accounting policies** _**(continued)**_
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal and fall into one of two sub-classes: restricted income funds or endowment funds.
## **Incoming resources**
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable, and its amount can be measured reliably.
- legacy income is recognised when receipt is probable, and entitlement is established.
- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
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_Jackson Nicholas Assie Limited Chartered Certified Accountants_
**Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2022**
## **3. Accounting policies** _**(continued)**_
## **Operating leases**
Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial activities on a straight-line basis over the life of the lease.
## **Tangible assets**
Fixed assets (excluding investments) are stated at cost less accumulated depreciation. The costs of minor additions or those costing below £20,000 are not capitalised.
## **Depreciation**
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|Improvement to leasehold|-|5|years straight line basis|
|---|---|---|---|
|property||||
|Equipment|-|4|years straight line basis|
## **Impairment of fixed assets**
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
## **Financial instruments**
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
- 17 -
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2022**
## **3. Accounting policies** _**(continued)**_
## **Defined contribution plans**
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
## **4. Limited by guarantee**
Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's) is a company limited by guarantee and accordingly does not have a share capital.
Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.
## **5. Charitable activities**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Funding from London Borough of|||||
|Waltham Forest|393,125|**393,125**|431,978|431,978|
|Services provided|1,958,729|**1,958,729**|1,616,830|1,616,830|
|Other income – reimbursement of|||||
|seconded staff/expenses|46,934|**46,934**|18,140|18,140|
||`────────────`|`────────────`|`────────────`|`────────────`|
||2,398,788|**2,398,788**|2,066,948|2,066,948|
||`════════════`|`════════════`|`════════════`|`════════════`|
## **6. Investment income**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Bank interest receivable|13|**13**|14|14|
||`════`|`════`|`════`|`════`|
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
- 18 -
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2022**
## **7. Other income**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Other Income - Job Retention Scheme|–|**–**|82,850|82,850|
|Other Income – Enjoy Benefits Income|600|**600**|–|–|
||`────────`|`────────`|`────────`|`────────`|
||600|**600**|82,850|82,850|
||`════════`|`════════`|`════════`|`════════`|
## **8. Expenditure on charitable activities by fund type**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Provision of nursery facilities|2,387,470|**2,387,470**|2,099,801|2,099,801|
|Support costs|16,199|**16,199**|19,427|19,427|
||`────────────`|`────────────`|`────────────`|`────────────`|
||2,403,669|**2,403,669**|2,119,228|2,119,228|
||`════════════`|`════════════`|`════════════`|`════════════`|
## **9. Expenditure on charitable activities by activity type**
||Activities||||
|---|---|---|---|---|
||undertaken||**Total funds**|Total fund|
||directly|Support costs|**2022**|2021|
||£|£|**£**|£|
|Provision of nursery facilities|2,387,470|
–|**2,387,470**|2,099,801|
|Governance costs|–|
16,199|**16,199**|19,427|
||`────────────`|
`────────`|`────────────`|`────────────`|
||2,387,470|
16,199|**2,403,669**|2,119,228|
||`════════════`|
`════════`|`════════════`|`════════════`|
## **10. Analysis of support costs**
|||Payroll|
Annual|Corporation|||
|---|---|---|---|---|---|---|
||Audit Fees|services|
Return Fees|Tax Fees|**Total 2022**|Total 2021|
||£|£|£|£|**£**|£|
|Governance costs|12,240|3,549|
211|198|**16,198**|19,427|
||`════════`|`═══════`|
`════`|
`════`|`════════`|`════════`|
## **11. Net (expenditure)/income**
Net (expenditure)/income is stated after charging/(crediting):
||**2022**|2021|
|---|---|---|
||**£**|£|
|Operating lease rentals|**316,367**|294,592|
||`═════════`|`═════════`|
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
- 19 -
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2022**
## **12. Auditors remuneration**
||**2022**|2021|
|---|---|---|
||**£**|£|
|Fees payable for the audit of the financial statements|**9,180**|9,195|
|Fees for non-audit services|**3,060**
`════════`|3,065
`════════`|
## **13. Staff costs**
The total staff costs and employee benefits for the reporting period are analysed as follows:
||**2022**|2021|
|---|---|---|
||**£**|£|
|Wages and salaries|**1,045,379**|889,922|
|Social security costs|**48,409**|49,153|
|Employer contributions to pension plans|**30,850**|24,652|
||`────────────`|`─────────`|
||**1,124,638**
`════════════`|963,727
`═════════`|
The average head count of employees during the year was 71 (2021: 60). The average number of full-time equivalent employees during the year is analysed as follows:
||**2022**|2021|
|---|---|---|
||**No.**|No.|
|Number of nursery practitioners|**45**
`════`|43
`════`|
No employee received employee benefits of more than £60,000 during the year (2021: Nil).
## **Key Management Personnel**
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £67,256 (2021: £57,876).
## **14. Trustee remuneration and expenses**
- no remuneration or other benefits from employment with the charity or a related entity were received by the trustees (2021: Nil)
- no trustee expenses have been incurred (2021: Nil); and
- no trustee or other person related to the charity has any personal interest in any contract ot transaction entered into by the charity during the year (2021: Nil)
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
- 20 -
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2022**
## **15. Tangible fixed assets**
|||Land and|||
|---|---|---|---|---|
|||buildings|Equipment|**Total**|
|||£|£|**£**|
||**Cost**||||
||**At 1 April 2021 and 31 March 2022**|2,991|7,595|**10,586**|
|||`═══════`|`═══════`|`════════`|
||**Depreciation**||||
||**At 1 April 2021 and 31 March 2022**|2,991|7,595|**10,586**|
|||`═══════`|`═══════`|`════════`|
||**Carrying amount**||||
||**At 31 March 2022**|–|–|**–**|
|||`═══════`|`═══════`|`════════`|
||At 31 March 2021|–|–|–|
|||`═══════`|`═══════`|`════════`|
|**16.**|**Debtors**||||
||||**2022**|2021|
||||**£**|£|
||Trade debtors||**176,596**|159,326|
||Prepayments and accrued income||**3,589**|4,769|
||Other debtors||**2**|2|
||||`─────────`|`─────────`|
||||**180,187**|164,097|
||||`═════════`|`═════════`|
|**17.**|**Creditors:** **amounts falling due within one year**||||
||||**2022**|2021|
||||**£**|£|
||Trade creditors||**113,034**|66,615|
||Social security and other taxes||**14,973**|11,806|
||Other creditors||**83,664**|84,802|
||||`─────────`|`─────────`|
||||**211,671**
`═════════`|163,223
`═════════`|
There is no pension liability other than those disclosed in other creditors.
## **18. Pensions and other post-retirement benefits**
## **Defined contribution plans**
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £30,850 (2021: £24,652).
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
- 21 -
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2022**
## **19. Analysis of charitable funds**
## **Unrestricted funds**
|**Unrestricted funds**|||||||
|---|---|---|---|---|---|---|
|||At||||**At**|
||1|April 2021|Income|Expenditure|
**31 March 2022**||
|||£|£|£||**£**|
|General funds||55,970|2,399,401|(2,403,669)||
**51,702**|
|||`════════`|`════════════`|`════════════`||
`════════`|
|||At||||At|
||1|April 2020|Income|Expenditure||31 March 2021|
|||£|£|£||£|
|General funds||25,386|2,149,812|(2,119,228)||
55,970|
|||`════════`|`════════════`|`════════════`||
`════════`|
## **20. Analysis of net assets between funds**
||||Unrestricted|**Total Funds**|
|---|---|---|---|---|
||||Funds|**2022**|
||||£|**£**|
|Current assets|||263,373|**263,373**|
|Creditors less than 1 year|||(211,671)|
**(211,671)**|
||||`─────────`|`─────────`|
|**Net assets**|||51,702|**51,702**|
||||`═════════`|`═════════`|
||||Unrestricted|Total Funds|
||||Funds|2021|
||||£|£|
|Current assets|||219,193|219,193|
|Creditors less than 1 year|||(163,223)|
(163,223)|
||||`─────────`|`─────────`|
|**Net assets**|||55,970|55,970|
||||`═════════`|`═════════`|
|**Analysis of changes in net debt**|||||
|||||**At**|
||At|1 Apr 2021|Cash flows|**31 Mar 2022**|
|||£|£|**£**|
|Cash at bank and in hand||55,096|28,090|**83,186**|
|||`════════`|`═══════`|`════════`|
## **21. Analysis of changes in net debt**
## **22. Operating lease commitments**
The total future minimum lease payments under non-cancellable operating leases are as follows:
||**2022**|2021|
|---|---|---|
||**£**|£|
|Not later than 1 year|**305,517**|273,000|
|Later than 1 year and not later than 5 years|**1,520,000**|659,750|
||`─────────`|`─────────`|
||**1,825,517**|932,750|
||`═════════`|`═════════`|
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
- 22 -
## **Little Learners Nursery Group (formerly Nurseries of St. Mary's & St. Saviour's)**
## **Company Limited by Guarantee**
## **Notes to the Financial Statements** _**(continued)**_
## **Year ended 31 March 2022**
## **23. Post balance sheet events**
The trustees have considered the likelihood of any negative subsequent events including the long-impact of COVID-19 and have concluded that the incidence of such events is likely to be minimal.
During August 2022 there was a flood at St Mary's Nursery, which led to all children being relocated to St Saviour's nursery. The trustees do not consider this an event requiring an adjustment to the financial statements as the relocation costs involved were met by the School Foundation and therefore did not materially impact the finances of the charity. The School Foundation is the landlord of the charity and is the landlord of both premises (St Mary’s and St Saviour’s). This event is not considered to have a negative impact on the ability of the nurseries to continue their operations.
The trustees also considered the likelihood of other significant post balance sheet events and concluded that there are none which impact the financial statements.
## **24. Related parties**
No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year or the previous year. There were no related party transactions during the current or previous year.
## **25. Going concern**
The trustees have been carrying out a continuous assessment of the long-term impact of COVID-19 on the operations of the charity, and considered the risks and threats posed.
The trustees are satisfied that to date, the threat to operations has been minimal and has not significantly reduced the effectiveness of the organisation.
The trustees have also considered the effect of the flood that occurred at St Mary’s Nursery in August 2022 and have concluded that the event does impact the going concern status of the charity.
The trustees have also considered the non-COVID-19 related circumstances and projections of the charity, and are satisfied, that the going concern basis, is appropriate for these financial statements.
_Jackson Nicholas Assie Limited Chartered Certified Accountants_
- 23 -