Charity registration number.. 1161710 Eastwood Neighbourhood Nursery CIO Annual Report and Financial Statements for the Year Ended 31 March 2023 'Play, learn and gmw togethe Eastwood Neighbourhood Nursery CIO Contents Icontinued) Reference and Administrative Details Trustees. Report 2108 Independent Examiner's Report Statement of Financial Activ￿"e$ 10 10 11 Balance Sheet 12 Notes to the Financial Stslements 131028 Eastwood Neighbourhood Nursery CIO Reference and Administrative Details Trustees S Condliffe, Chair D Chadwck. T￿aSU￿r N Hajiani, Secretary V Brovm D Condliffe M Cunnington V Brovm, Manager M Cunnington, Deputy C Amold. Finance Officer Sonlor Manag•m•nt I L8ad8rship Team Charity Registration Numb8r 1161710 Principal Offic 100 Franklyn Street Hanley Sloke-on-Trent ST1 3HD Inde￿ndfrnt Examlnor Daryl Denson ACMA VAST The Dudson Centre Hope Street Sloke-on-Trent ST1 SDD Bankern Nat West 1 Upper Huntbatch Street Hanley Sloke on Trent ST1 1NS Page 1 Eastwood Neighbourhood Nursery CIO Trustees. Report The trustees present the annual report together vAth the finawal statement$ of the charity for the year ended 31 March 2023. Structure, governance and managèment Nature ofgovéming document The nursery was registered as a chanty on 22 April 1993. On the 18 May 2015 a Charitsble Incorporated Organisabon ICIOI was sel up and the assets and operations of the original charity were transferred to the CIO on 6 April 2016. The CIO was established under a consts'tution which outline$ the objectives and powers of the charity and is governed by the Charibes Act 2006. Re¢rultment and appolntment of trustees The appointment of Iruslees is governed by the constitution of the charity and is made if new Iruslees are required.There are currently six Iruslees are responsible for the overall management and ntrol of the chanty. The appoinbnent of trustees is govemed by the constituts'on of the charity and is made if new trustees are required. None of the Irustees has any financial interest$ in the charity. Inductlon and tralnlng of twstee$ The Iruslees bring specific skills, knovAedge and expenence into our oversight of the charity and each Iruslee holds oversight for spttifie areas of the business of the chanty. The training and induction of new Iruslees is supported by both existing Iruslees and the management team. A new Iruslee is given copie$ of the key documents associated wlh Ihe governance of the Charity. the latest financial infomiation and accounts. and ￿ look at how roles and responsibilities are shared acro$$ the Iruslees. Org•nlsatlonal structure We have a strong leadership team in place. wth a clear vision for the development of the Nursery. The leadership team has over 30 years of expenence in Eady Years Childcare and Education. The day-to-day management of the Nursery is delegated to the Management Commrttee. under the leadership ol the Nursery Manager. with the support of the wder senior management team. They rneel regularfy lo maintain ¢)versight of finances, complwrKe ￿th legal requirements and fomard planning. We are developing senior staff as part of succession planning to ensure the future of the Nursery remains in the best of hands. Page 2 Eastwood Neighbourhood Nursery CIO Trustees. Report (continued) Relationships with related parties Stoka on Trent City Council The charity is guided by Children & Young Peoples Semces which is based wrthing Stoke on Trent City Council. Our charity is monitored by Business Officers, Development Officers, and Early Years Consuttanls wrth regular visits according to the charity's needs. We attend Managers Meetings with these teams for advice and support wth is invaluable lo us. Eastwood N•lghbourhood Nursory PSFA EaS￿00d Neighbourhood Nursery PSFA was established as a charity by rt is constr(ution adopted on 2nd November 2016 and registered with the Chanty Commission on 26th September 2017. The PSFA fundraises for Eastwood Neighbourhood Nursery CIO and Is a separate charity with rts own Irustee5' board. Two of the Iruslees of the CIO are Iwslees of both the CIO and PSFA and another member ol the management team 1$ a Iru$tee ofthe EasfvKw)d Neighbourhood Nursery PSFA. OblectiveB and actIvI￿e8 ObJ•¢ts andalms To advance for the public benefit the educats.on and development of Children by Such means as the charity Iruslees think fft and in pa￿'Cular by". al The provision of a tjay nursery providing high quality ￿re and education for children below Statutory school age which promoles their care. safety and health and wellbeing bl The provision of the necessary facilits.es for the daily care. recreation and edUca￿On of chlldren during out of school hours and school holidays. The charity aims to give the children entrusted to our care the best start in lrfe through quality childcare and education. Within the remit of the chaity's objects the twslees have sel a number of aims for the charity. The eharity aims to give Ihe children entrusted lo tyjr care the best Start in life through quality childcare and education. To ensure that all children'g individual health and vdlbeing needs a￿ met. • To sel out the CIO'S direcb'on. uphold and promote rts values an(J deliver ils goals. To attend regular Trustees meeljngs and activity contribute to the effective management of the meeting. To ensure that the CIO does not break any of the requirements of the conslilutionlptslicieg and procedures. • To liaise and work effectively the Twstees and the team trrringing all our ideas. prospectives and experience to the committee to support the CIO. . To keep abreast of current developments that may impact the CIO. * To have an effective communication between Twslees and members of the committee + To work wlh the Finance Officer lo set budgets and monilor the financial situation. Page 3 Eastwood Neighbourhood Nursery CIO Trustees. Report (continued) Who we help We accept children from the local areas, as well as children vthose parents commute into the area for work and education. We understsnd that sending a child to Nursery can be a difficult choice or a decision dictated by financial needs. Our ambition is to create a welcoming and indusive environment vthere children can thrive, make friend, and participate in a range of activities. We want parents lo have confidence that they leave their children in the hands of a competent, friendly, and nurturing staff team and in a dean, safe and sts'mulating environment. We adopt a flexible approach to the care package each thild has. %thich means %%E can respond to and meet each family's different needs and make a change where needed. This way we work chil¢Jren focuses on their well-being. We have safeguarding policies and procedures in place to ensure that every child, regardle$$ of their age, gender. religion. or ethniaty, are kept safe and their welfare prioritised. We work wlh our health. social and educatson partners lo ensu￿ that support for children and their families is child centred, timely and Cctrordinated through good communicats'on and collaborative working. Our manager is the Special Needs Coordinator ISENCOI vtho works alongside an as51Stanl SENCO who liaise wth children's key Wofkers. parent. speech and language therapist, health visitors, inclusion team and the Earfy Years Forum followng the SENO Code of Practice. We have a community room in our Nursery premises, which we offer to parents. professionals and children to use lor meetings and other activib"e$. We carry out 1..1 intensive interest activities with our children with SEN in our community room. We work Closely wlh our neighbour. Waterside Primary S¢hool to enhan¢e joint working opportunities. We also work closely Waterside and wder primary school partners to ensure that our children and parents are'school readl. Our staff team are important to us. We vrdnl our staff team lo be happy, welkequipment and suppgrted to do an excellent job. We have a motivated and stable staff team. We employ 21 members of staff with a blend of Contra￿e￿ hours anLI skill set and minimal lumover. All our care stsff a￿ qualffied lo NVQ level 2, 3, 4 and Foundation Degree. Our stsff ￿9￿larlY attend update ￿￿r$e$ we have ftjnded lo maintain their skills and kno￿edge and as part of their ongoing professional development. We also have students and volunteers who attend our nursery on placement a5 part of their training. Public 8•n•fit The trustee5 confirm that they have complied with the requirements of section 17 of the Charrties Act 2011 to have due regard to the public benefft guidance published by the Charity Commission for England and Wales. Page 4 Eastwood Neighbourhood Nursery CIO Trustees. Report (continued) What others say about us As a provider of childcare, the nursery is registered wth OFSTED. Under our terms of registration, we must ensure that the care provided meets the requirements of the statutory framework for children's learning, development and care. The TTLlStees are extremely proud to report that the nursery was inspected followng the year end in April 2019 and awarded a rab.ng of'outslanding,. About tho last 12 months- Achig¥em•nts and perforniance The Trustees believe the achievements and performs of the Nursery over the last 12 months have continued to be outstanding. We are a relatively small charity and we do not have the time to do everything we want lo. As Trustees we continue lo be amazed by the energy and resilience of our staff and their ability lo maintain and sense of humour. At the end of the financial year, we had 79 children in our care and prowded approximately 154,050 hours ol childcare over the last 12 months. We have prepared 28 children for primary school, supporting their transth'on and handover to other adults wll continue their education journey. We supported 7 children vtho were identified as having $pe¢ifi¢ leaming or social difficulties. The 5UPPOrt included Speech and Language, Specific Strategies for their difficulty and Earty Years Forum Referral. . We offered contsnuity and certainty of chil¢J¢are for children and parents through a stsble staff team and safe, $e¢ure environment. . We conts'nued lo work with local colleges to offer placemenl for students on childcare courses. We continued to value and care for the environment through the education of our children and changes lo how we purchase and use our resources. We provided good qualty toys. equipment and resources including maintenance of our outdoor play areas. We provided structured days, opportunitie$ for play and leaming and praise, encouragement and lau9hler. We implemented the changes lo the statutory EYFE framework which became law in September 2021. Page 5 Eastwood Neighbourhood Nursery CIO Trustees. Report (continued) Financial review- How we have spent and managed our money We receive parent paid fee income and funded by the Local Authority to provide Early Education for 2,3 & 4 year old children. We also receive Pupil Premium fvnding, which is awarded lo make a drfference lo the most disadvantaged of our children. We receive funding for support and re$our¢e$ for our ¢hildren %Mth Speaal Educational Needs. We are not involved in large Scaling lunding. The Ea5fv￿ Neighbourhood Parents, Staff and Friends Association continues lo adively lundraise on our behalf allowing us lo invest in additional resources and opportunitses to enhance the experience of chIld￿n in our ca￿. How we manage the money we receive We are a relatively small chafrty and our biggest challenges untinue lo be". Failing to generate enough in￿me. • Failing to effectively manage our budget and financial wabilty- The sector remains challenging With staff and running costs increasing and Local Authority funding not a￿ayS covering the cost of delivering fun¢Jed places. We have continued to keep fees as low as possible and staff paid a fair wage or salary. Our expenditure Is focused on ensuring we have the Staff, premise5 and the resources lo support our children lo thrive in a happy. healthy and secure environment. Our total income lor the year was £367.938 which is broadly in line total income fgr the year ended 31 March 2022 of £368.313. However. expenditure for the year increased by £20.633, this increase ha5 been caused by nsing costs in wages. food. ub'lits"e$ and other charitable expenses. Our primary costs continue lo be staff wages. We continue to maintain oversight of our staff contracts. fee structure and session ts'mes and monitor and respond to changes in the funding of Earfy Years care so Y￿ can adapt if we need lo. This 1$ e55enti.al because of the nature of lunding for 2, 3 & 4 year olds. In previous years, V￿ have been left wth out$tsnding fees. In response lo thi$ we have strengthened our procedures and follow up, including instigation of claims through the courts where necessary. These changes continue lo ensure that the level of OLtstanding fees is as low as possible, and our Management Team are commended for their continued oversight and work wth parents lo manage what can be emotive situations. Page 6 Eastwood Neighbourhood Nursery CIO Trustees. Report (continued) Policy on reserves At the year and unrestricted reserves are £31,20012022'. £58,866) comprises £23,449 of fixed assets12022'. £24,9211 and £7,751 of current assets12022.' £33,945). The charty has set a reserve tsrget lor fvnd not ¢ommitte(l or invested of £20.000 to be sel aside for future unexpected expenditure. Most of the charity's income is committed to the day to day running of the nursery and the trustees recognise that this wll not be achievable in the short term. In the meantime, we continue to monitor our expenditure to ensure that any avoidable or unnecessary costs are managed. Our current financial position is considered satisfactory. We do not carry any significant debts and we continue to reinvest surpluses back into the nursery. The Trustees are satisfied that the charity continues to be financially viable. Prln¢lpal funding sources - whgrn ourmoney comes from Our prineipal source of income is fees for chiklren attending the nursery and our belorelafter school and holiday club. We qualfy for Local Aulhorty Earty Years ftjnding for 2, 3 & 4 year olds. We receive Pupil Premium lundin9 which is awarded lo make a difference lo the mo$1 disadvantaged of our children. We also receive fvndin9 for our children with SEN. The Eastwood Neighbourhood Nursery PSFA conb.nues lo acb.vely raise fvnds on our behalf allowng us lo invest in additional ￿sourceS and opportunities lo enhance the expersence of childr&n when in our care. About the next 12 month8 - what ￿ VAnt to a¢hl•v• We want to contsnue to make a difference in children's lives. Qualify Early Years provision narrows the gap befvRen di58dvantaged and non-di5advantaged children. In Stoke on Trent the proportions of children aged under 16 in households where the level of income means they cannot afford basic svbsislence has risen to 33.2% Iofficial Stslistics - Child￿n in Iow-income families in Stoke on Trent 20231. Our lo¢u$ for the coming year includes.. We wll continue lo collaborate %Mth our partners and families lo provide high qualty care and education for children. . We will provide practical support and involve other services to address the impact of poverty and the C051 of living on lives of children and their families. * We VAII maintain the quality reflected by our outstanding OFSTED rating. We wll fom)alise a quality framework to support the monitoring of our performance as part of the ongoing improvement of our govemance structure to help us know there we may need to focus and . We wll continue to develop and value our slaff team. + We will Continue lo maintsin and develop our links y￿1h our local community and organisab'ons. We wll review our mission statement and document our ethos in temi of what we value, how we run the Nursery and what we do for the children. . We will prepare for and celebrate our 20th anniversary as a Neighbourhood Nursery. We moved into our ovm premises and stsrting caring for children of all age5 a5 a chaiity in 2004. Page 7 ## **Eastwood Neighbourhood Nursery CIO** ## **Trustees' Report (continued)** **The annual report was approved by the trustees of the charity on 1 February 2024 and signed on its behalf by:** ~~**Sharon Condllf**~~ **!Cs Mr** ~~**e**~~ **(Feb l, 2024 05:10 GMT)** **S Condliffe Trustee** **Page 8** ## **Eastwood Neighbourhood Nursery CIO** **Independent Examiner's Report to the trustees of Eastwood Neighbourhood Nursery CIO** I report to the trustees on my examination of the accounts of Eastwood Neighbourhood Nursery CIO for the year ended 31 March 2023. ## **Responsibilities and basis of report** As the charity trustees of Eastwood Neighbourhood Nursery CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act'). I report in respect of my examination of the Eastwood Neighbourhood Nursery CIO's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner's statement** Since Eastwood Neighbourhood Nursery CIO'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 CIMA, which is one of the listed bodies. I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of Eastwood Neighbourhood Nursery CIO as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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. 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. Daryl Denson **ACMA** VAST The Dudson Centre Hope Street Stoke-on-Trent ST1 5DD Date: 01/02/2024 Page 9 Eastwood Neighbourhood Nursery CIO Statement of Financial Activities for the Year Ended 31 March 2023 Total 2023 Unr¢$trl¢t Restrl¢ted Note In¢omg and EndO￿lnents from: Donations and legacies Charitable activities Other trading activities Investment income 17,851 17,851 349,767 254 66 349.767 254 Total in¢ome 350.087 17,851 367.938 Exp•ndltur• on: Charitable activities 378,927 26,870 405,797 Total expenditure 378,927 26,870 405,797 Net expenditure Gross transfers bets¥een funds {28.8401 1.174 (9,0191 1,174 137,8591 Net movement in funds {27,6661 110,1931 137,8591 RoConcllla￿On of lunds Total funds brought forward Total funds carried forward 58,866 242,176 301,042 17 31.200 231,983 263,183 The notes on pages 13 10 28 form an integral part of these financial stslements. Page 10 Eastwood Neighbourhood Nursery CIO Statement of Financial Activities for the Year Ended 31 March 2023 (continued) Total 2022 Unr¢$trl¢t Restrl¢ted Note In¢omg and EndO￿lnents from: Donations and legacies Charitable activities Investment income 352 363.944 4,013 4,365 363,944 Total income 364.300 4,013 368,313 Exp•ndlture on: Charitable activities 369,966 15,198 385,164 Total expenditure 369,966 15,198 385,164 Nel movement in fund$ 15.6661 111,1851 116,8511 Roconclllatlon of lunds Total funds brought fO￿ard Total funds carried forward 64.532 253,361 317,893 17 58.866 242,176 301.042 All of the charity's ath'vities derive from continuing operations during the above period5. The funds breakdown for 2022 1$ shown in note 17. The notes on pages 13 10 28 form an integral part of these financial stslements. Page 11 ## **Eastwood Neighbourhood Nursery CIO** ## **(Registration number: 1161710) Balance Sheet as at 31 March 2023** |||**2023**|**2022**| |---|---|---|---| ||**Note**|£|£| |**Fixed assets**|||| |Tangible assets|13|254,362|266,395| |**Current assets**|||| |Debtors|14|5,278|6,469| |Cash at bank and in hand||8,817|33,505| |||14,095|39,974| |**Creditors: Amounts falling due within one year**|15|�5,2741|�5,3271| |**Net current assets**||8,821|34,647| |**Net assets**||263,183|301,042| |**Funds of the charity:**|||| |**Restricted income funds**|||| |Restricted funds||231,983|242,176| |**Unrestricted income funds**|||| |Unrestricted funds||31,200|58,866| |**Total funds**|17|263,183|301,042| The financial statements on pages 10 to 28 were approved by the trustees, and authorised for issue on 1 February 2024 and signed on their behalf by: **SharonCondliffe(Febl,202405:l0GMD** ~~. M~~ r S Condliffe Trustee The notes on pages 13 to 28 form an integral part of these financial statements. Page 12 Eastwood Neighbourhood Nursery CIO Notes to the Financial Statements for the Year Ended 31 March 2023 1 Accounting policies Ststsmont of ¢omplian¢¢ The Charity is registered as a CIO (Charitable Incorporated OTganisationl The Charity Commission lor England and Wales. The financial statements have been prepared in accordance 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 IFRS 1021 lissued in October 20191- Ichanbes SORP IFRS 10211. Ihe Financial Rewrting Stanijard applicable in the UK and Republic of Ireland IFRS 1021 and the Charibes Act 2011. Basls of preparatSon EaS￿00d Neighbourhood Nursery CIO meets the definition of a public benefft entty under FRS 102. The accounts (financial statement51 have been prepared under the historical cost convention wlh item5 recognised al cost or transaction value unless othewse stated in the ielevanl nolelsl lo these accounts. Golng concgrn The financial $tstemgnts have been prepared on a going concem basis. The Iruylee$ •sse$y vthelher the use of going con¢em 1$ appropriate i.e. whèther there are any rnalerial uneertainlie5 related lo events or eondib.ons that may cast significant doubl on the ability of the charity to conty'nue as a going ¢oncem. The Iru$lee$ make this as$e$smenl in respe¢l of a period of one year ftom the date of approval of the financial statements and have considered the small current assets position at the balance sheel date. The Iruslee5 are confident that change5 they have made to the structure of the nursery Sessions and lees. along with increasing numbers of ¢hildren. wll have an ongoing poslive impact on the financial position of the nursery as has been seen in the financial year ended 31 Mai¢h 2021. Incomo and endovnnents Voluntsry income including donations. gifts, legacies and grants that provide core funding or are of a general nature 15 recognised %then the charity has entiUement to the income, rt Is probable that the income wll be received and the amount can be measured with SLthcienl reliabilty. Donatlons andl•gaclos Donations and legacies are recognised on a receivable basis vthen ￿ceIpt is probable and the amount can be reliaNy meaSu￿d. Grants receivable Grants, including grants for the purchase of fixed assets. are recognised in full in the statement of financial activities in the year in which they are receivable. Donatedsetrvices and facilities Donated services and facilrties are included at the value to the charrty where this can be quantified. The value of Servies provided by volunleers has not been quantiffied. Page 13 Eastwood Neighbourhood Nursery CIO Notes to the Financial Statements for the Year Ended 31 March 2023 (continued Exp•nditur8 All expenditure is recognised once the￿ is a legal or constructive obligation to that expend((u￿, il is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditu￿ heading that a99regate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent wth the Use of resources, wth central staff costs allocated on the basis of bme spent, and depreciab'on charges allocated on the portson of the asset's use. Other support costs are allocated based on the spread of $taff costs. Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of its activitie$ and services for ils beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an Indirect nature necessary lo support them. Governanc8 Costs These include the costs attributable lo the Charity's compliance th constrtulional and stslulory requirements, including audil, strategic managemenl and trustees meetings and reimbursed expenses. Gov•rnm•nt grants Government grants are recognised based on the accrual rnodel and are measured at the fair value of the asset ￿ceIVed or receivable. Grants afe classified as ￿latsn9 either to revenue or lo asselg. Grant$ relating lo revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over ihe expected useful life ol the a$$el. Where part of a 9rant relats'ng to an asset is deferred. it is recognised as deferred income. Taxatlon The charity is considered lo pass the lesls set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definib'on of a ¢haritsble company for UK corporation tsx purposes. Accordingly, the Charity is potentially exempl from tsxation in respect of income or capitsl gain$ received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such income or 9ains are applied exclusively lo chantable purposes. Tanglbl8 flxed assèts Individual fixed assets costing £100 or m¢ye are initialty recorded at cost, less any subsequent accumulated depre￿atIon and subsequent ac¢umulated impaim)ent los$e$. Dep￿cIatIon and amortisation Depreciation is provided on tangible fixed assets so as to wrrte off the cost or valuab"on, le55 any e51imaled residual value, over their expected useful economic life 85 follows-. Page 14 Eastwood Neighbourhood Nursery CIO Notes to the Financial Statements for the Year Ended 31 March 2023 (continued As$¢t class Buildings Leasehold improvements Fixtures. fittings and equipment Computers Doprg¢latlon mothod and rats 2% per annum straight line 10% per annum slraighl line 25% per annum ￿d￿cing balance 33% per annum reducing balance Trad• dobtors Trade debtors are amounts due from customers foi merchandise sold or seNices performed in the ordinary course of business. Trade debtors are recognised initsally at the transaction price. They are subsequently measured al amorb'sed cost using the effective interest method, less provision for impaimienl. A provision for the impairment of 15 established when there is objective evidence that the wll not be able lo collect all amounts due according to the original lemis of Ihe receivables. Trade creditors Trade creditors are obligaty'on$ lo pay fof goods or se￿l¢e$ Ihat have been a￿Uired in the ordinary course of business from suppliers. Accounts payable are classified as Current liabilities if the does not have an unconditional right. al the end of the reporting period, to defer settlement of the creditor for al least twelve months after the reporting dale. If there is an unconditional right to defer settlement for al least tr￿1ve months after the reporting dale. they are p￿Sented as non-current liabl1￿.e$. Trade creditors are recognised initi'ally at the transaction pri￿ and subsequently measured al amorts'sed cost using the effective interest method. Fund $tructurg Unrestricted income funds are general funds that a￿ available for use al the Iruslees discretion in furtherance of the objecb'ves of the Charity. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. Pensions and other post retirement obligations The charity operates a defined contribution pension scheme %thich is a pension plan under which fixed contributions are paid into a pension fund and the chanty has no legal or conslrucb.ve obligation lo pay further contributions even rf the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions lo defined conlribub.on plans are recognised in the Statement of Financial Activitie5 when they are due. If contribution payments excee(I the contribub.on due for service, the excess is recognised as a prepayment. Page 15 Eastwood Neighbourhood Nursery CIO Notes to the Financial Statements for the Year Ended 31 March 2023 (continued Flnanclal In$twmonts Classrfication Financial assets and financial liabilities are ￿CognIse