REGISTERED CHARITY NUMBER: 1163181
Report of the Trustees and
Financial Statements for the Year Ended 31 August 2021
for
St John's Nursery Group CIO
Warren House Accountants Limited 4 The Courtyard Holmsted Farm Staplefield Road Haywards Heath RH17 5JF
St John's Nursery Group CIO
Contents of the Financial Statements for the Year Ended 31 August 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 2 |
| Independent Examiner's Report | 3 | ||
| Statement of Financial Activities | 4 | ||
| Statement of Financial Position | 5 | ||
| Notes to the Financial Statements | 6 | to | 11 |
| Detailed Statement of Financial Activities | 12 |
St John's Nursery Group CIO
Report of the Trustees for the Year Ended 31 August 2021
The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of 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) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity exists to advance the education of children below compulsory school age by providing satisfactory group play in a safe and secure environment. It aims to ensure to the best of its ability that excellent facilities and pre-school education are provided to each child who attends the nursery.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
Like many small organisations, the last year has presented challenging conditions for the nursery. Ongoing uncertainty around lockdowns, employment conditions and government support made financial planning much harder. Uncertainty around the future was felt at all levels at the nursery. All our staff did a fantastic job to keep the nursery operating and our children supported over successive lockdowns and peaks in COVID rates.
January 2021 saw a transition in management at the nursery. Linda Innes's service to us has had a significant impact, and it is that service which is the foundation of our provision today. She championed links with other local charities and led our strong SEN support, which is now in high demand. We wish her the best in her new role with Surrey County Council.
We are delighted to welcome Maz Wilkinson as our new manager; I hope all of you have had a chance to meet her and understand her vision for the group and the children we look after. She impressed everyone she spoke to during the recruitment process. She also took on risk to join the nursery amid significant COVID-related uncertainty, and we are grateful for her commitment. She has already had a significant positive impact on our operations.
Our financial performance was hindered by uncertainty around our ability to operate on a day-to-day basis. The management team worked at a very high rate to monitor day-to-day performance, trying to support all our staff. We are grateful to Surrey County Council for their support through grants, which allowed us to enter 2021/22 with more confidence around our future.
In the latter half of the year, we saw a significant increase in staff turnover. There are different drivers for this in different areas of the business. At the senior staff level, the qualifications and experience open the door to alternative career paths that offer significantly higher pay. We cannot compete with these employers, so our focus here is to ensure we offer the best conditions and support our internal staff to grow into more senior roles. At lower levels, wage competition has increased significantly. With no comparable increase in government support, this will inevitably impact the fees we need to charge.
Looking to the next year, our focus is now on improving the business operations of the nursery whilst maintaining our support for local charities and the quality of the SEN provision. By maximising our occupancy for each location and staffing complement, we can limit the increase in fees for our parents. With a strong management team in place, I am confident we can deliver on this.
It has been a challenging year for the entire team, but I would like to close by extending my heartfelt thanks to everyone who has kept the nursery open in such difficult circumstances. It is no exaggeration to say that without everyone here working as a team - from the trustees to the management team and all our staff - we would not have been able to continue so strongly.
FINANCIAL REVIEW
Reserves policy
Recently' due to the expansion to a second site, the Trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets ('the free reserves') held by the charity should be equal to 1 month's operating costs plus redundancy costs.
Current redundancy costs are £3,800 and one month's operating costs have increased to £24,000 due to the additional costs of the second site.
This year the free reserves, which amount to £73,808 are in excess of this target level.
Page 1
St John's Nursery Group CIO
Report of the Trustees for the Year Ended 31 August 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Charity is controlled by its governing constitution, using the Charity commission CIO 'Association' model template.
Organisational structure
The members of the Management Committee are as follows:
| Chris Kelly | Chairman | |
|---|---|---|
| Jonathan Cottrell | Treasurer | |
| Ellie Willis | Secretary | Resigned October 2020 |
| Jodi Marsh | Secretary | Appointed October 2020 |
| Resigned January 2021 | ||
| Vicki Edwards | Secretary | Appointed January 2021 |
| Paul Corcoran | General Member | Resigned October 2020 |
Trustees and Management Committee members self-nominate for roles and are voted in at the charity's Annual General Meeting.
Advice and information
The nursery is a member of the Pre-School Learning Alliance (PLA) and as such is able to benefit from PLA training sessions in addition to free advice, both legal and otherwise. The nursery is registered with social services and is inspected by OFSTED.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1163181
Principal address
Redstone Lodge Philanthropic Road Redhill Surrey RH1 4DG
Trustees
J Cottrell C Kelly Ms E Willis (resigned 1.1.21) Ms V Edwards (appointed 1.1.21)
Independent Examiner
Warren House Accountants Limited 4 The Courtyard Holmsted Farm Staplefield Road Haywards Heath RH17 5JF
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
.................................................................... C Kelly - Trustee
Page 2
Independent Examiner's Report to the Trustees of St John's Nursery Group CIO
Independent examiner's report to the trustees of St John's Nursery Group CIO
I report to the charity trustees on my examination of the accounts of St John's Nursery Group CIO (the Trust) for the year ended 31 August 2021.
Responsibilities and basis of report
As the charity trustees of the Trust 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 Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCA 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:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the applicable 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.
P R Collins FCA Warren House Accountants Limited 4 The Courtyard Holmsted Farm Staplefield Road Haywards Heath RH17 5JF
Date: .............................................
Page 3
St John's Nursery Group CIO
Statement of Financial Activities for the Year Ended 31 August 2021
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Charitable activities Grants Receivable 259,095 Charitable Activities 72,608 Other trading activities 2 745 Total 332,448 EXPENDITURE ON Charitable activities Charitable Activities 258,783 Support Costs 29,293 Total 288,076 NET INCOME 44,372 RECONCILIATION OF FUNDS Total funds brought forward 29,436 TOTAL FUNDS CARRIED FORWARD 73,808 |
Restricted fund £ - - - - - - - - - - |
31.8.21 Total funds £ 259,095 72,608 745 332,448 258,783 29,293 288,076 44,372 29,436 73,808 |
31.8.20 Total funds £ 204,427 64,061 867 |
|---|---|---|---|
| 269,355 244,398 22,144 |
|||
| 266,542 | |||
| 2,813 26,623 |
|||
| 29,436 |
The notes form part of these financial statements
Page 4
St John's Nursery Group CIO
Statement of Financial Position 31 August 2021
| 31.8.21 | 31.8.20 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| fund | fund | funds | funds | ||
| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Tangible assets | 6 | 6,291 | - | 6,291 | 8,337 |
| CURRENT ASSETS | |||||
| Debtors | 7 | 5,083 | - | 5,083 | 1,876 |
| Cash in hand | 65,590 | - | 65,590 | 24,885 | |
| 70,673 | - | 70,673 | 26,761 | ||
| CREDITORS | |||||
| Amounts falling due within one year | 8 | (3,156) | - | (3,156) | (5,662) |
| NET CURRENT ASSETS | 67,517 | - | 67,517 | 21,099 | |
| TOTAL ASSETS LESS CURRENT | |||||
| LIABILITIES | 73,808 | - | 73,808 | 29,436 | |
| NET ASSETS | 73,808 | - | 73,808 | 29,436 | |
| FUNDS | 10 | ||||
| Unrestricted funds | 73,808 | 29,436 | |||
| TOTAL FUNDS | 73,808 | 29,436 |
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. C Kelly - Trustee
The notes form part of these financial statements
Page 5
St John's Nursery Group CIO
Notes to the Financial Statements for the Year Ended 31 August 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
The presentation currency of the financial statements is the Pound Sterling (£).
On 11th March 2020 the World Heath Organisation declared COVID-19 a global pandemic. The trustees have considered the impact of the ongoing pandemic and have acknowledged that it has had and may still have an impact on the charity's activities for at least the next twelve months. The trustees are committed to pursuing financial support for the charity which will allow it to withstand any further impact and continue their activities for the foreseeable future. On this basis the trustees are that the going concern basis of preparing the financial statements is appropriate.
The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
-
the requirements of Section 7 Statement of Cash Flows;
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the requirement of paragraph 3.17(d);
-
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
-
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on cost Computer equipment - 25% on cost
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Page 6
St John's Nursery Group CIO
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
1. ACCOUNTING POLICIES - continued
Fund accounting
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Government grants
The government grants have been recognised under the performance model. An amount on £70,000 (2020 - £10,000) was received in response to the COVID-19 pandemic to support the company and an amount of £8,769 (2020 - £34,514) was received under the job retention scheme, there are no unfulfilled conditions or other contingencies.
2. OTHER TRADING ACTIVITIES
| OTHER TRADING ACTIVITIES | ||
|---|---|---|
| 31.8.21 | 31.8.20 | |
| £ | £ | |
| Other Income | 745 | 867 |
3. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.
Trustees' expenses
During the year, £3,316 (2020: £17) of expenses were reimbursed to the trustees in respect of items purchased on behalf of the charity.
4. STAFF COSTS
The average monthly number of employees during the year was as follows:
| Nursery Staff No employees received emoluments in excess of £60,000. 5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund £ INCOME AND ENDOWMENTS FROM Charitable activities Grants Receivable 204,427 Charitable Activities 64,061 Other trading activities 867 Total 269,355 |
31.8.21 18 Restricted fund £ - - - - |
31.8.20 19 Total funds £ 204,427 64,061 867 269,355 |
|---|---|---|
EXPENDITURE ON
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St John's Nursery Group CIO
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
| 5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued Unrestricted Restricted fund fund £ £ Charitable activities Charitable Activities 244,398 - Support Costs 22,080 64 Total 266,478 64 NET INCOME/(EXPENDITURE) 2,877 (64) RECONCILIATION OF FUNDS Total funds brought forward 26,559 64 TOTAL FUNDS CARRIED FORWARD 29,436 - 6. TANGIBLE FIXED ASSETS Fixtures and Computer fittings equipment £ £ COST At 1 September 2020 34,822 4,132 Additions 525 2,843 At 31 August 2021 35,347 6,975 DEPRECIATION At 1 September 2020 26,762 3,855 Charge for year 4,422 992 At 31 August 2021 31,184 4,847 NET BOOK VALUE At 31 August 2021 4,163 2,128 At 31 August 2020 8,060 277 |
Total funds £ 244,398 22,144 |
|---|---|
| 266,542 | |
| 2,813 26,623 |
|
| 29,436 | |
| Totals £ 38,954 3,368 42,322 30,617 5,414 36,031 6,291 8,337 |
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St John's Nursery Group CIO
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
| 7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
|---|---|---|---|
| 31.8.21 | 31.8.20 | ||
| £ | £ | ||
| Other debtors | 3,702 | 495 | |
| Prepayments and accrued income | 1,381 | 1,381 | |
| 5,083 | 1,876 | ||
| 8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
| 31.8.21 | 31.8.20 | ||
| £ | £ | ||
| Trade creditors | - | 548 | |
| Taxation and social security | - | 1,397 | |
| Other creditors | 3,156 | 3,717 | |
| 3,156 | 5,662 | ||
| 9. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows:
| Within one year Between one and five years In more than five years 10. MOVEMENT IN FUNDS Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS |
At 1.9.20 £ 29,436 29,436 Incoming resources £ 332,448 332,448 |
31.8.21 31.8.20 £ £ 18,000 31,000 72,000 86,000 250,500 250,500 340,500 367,500 Net movement At in funds 31.8.21 £ £ 44,372 73,808 44,372 73,808 Resources Movement expended in funds £ £ (288,076) 44,372 (288,076) 44,372 |
31.8.20 £ 31,000 86,000 250,500 |
|---|---|---|---|
| 367,500 | |||
| 44,372 |
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St John's Nursery Group CIO
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
10. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| At 1.9.19 £ Unrestricted funds General fund 26,559 Restricted funds New Place Grant 64 TOTAL FUNDS 26,623 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 269,355 Restricted funds New Place Grant - TOTAL FUNDS 269,355 A current year 12 months and prior year 12 months combined position is as follows: At 1.9.19 £ Unrestricted funds General fund 26,559 Restricted funds New Place Grant 64 TOTAL FUNDS 26,623 |
Net movement At in funds 31.8.20 £ £ 2,877 29,436 (64) - 2,813 29,436 Resources Movement expended in funds £ £ (266,478) 2,877 (64) (64) (266,542) 2,813 Net movement At in funds 31.8.21 £ £ 47,249 73,808 (64) - 47,185 73,808 |
|---|---|
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St John's Nursery Group CIO
Notes to the Financial Statements - continued for the Year Ended 31 August 2021
10. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds New Place Grant TOTAL FUNDS |
Incoming resources £ 601,803 - 601,803 |
Resources Movement expended in funds £ £ (554,554) 47,249 (64) (64) (554,618) 47,185 |
|---|---|---|
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 August 2021.
Page 11
St John's Nursery Group CIO
Detailed Statement of Financial Activities for the Year Ended 31 August 2021
| for the Year Ended 31 | August 2021 | |
|---|---|---|
| 31.8.21 | 31.8.20 | |
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Other trading activities | ||
| Other Income | 745 | 867 |
| Charitable activities | ||
| Fees | 68,593 | 59,586 |
| Hot Lunches | 3,897 | 3,878 |
| Fundraising | 118 | 597 |
| Grants | 259,095 | 204,427 |
| 331,703 | 268,488 | |
| Total incoming resources | 332,448 | 269,355 |
| EXPENDITURE | ||
| Charitable activities | ||
| Wages | 200,279 | 197,732 |
| Pensions | 2,337 | 2,262 |
| Session Expenses | 6,304 | 4,999 |
| Hot Lunches | 7,692 | 4,847 |
| Fundraising costs | - | 167 |
| Rent and Insurance | 33,494 | 29,134 |
| Training courses | 1,269 | 1,283 |
| Advertising | 4,322 | 665 |
| Sundries | 106 | 200 |
| Refurbishment of new premises | 1,216 | 2,167 |
| Uniform Costs | 1,764 | 942 |
| 258,783 | 244,398 | |
| Support costs | ||
| Management | ||
| Legal and Professional | - | 1,328 |
| Committee Administration | 500 | 180 |
| Nursery Utilities | 9,855 | 7,676 |
| Telephone | 2,929 | 2,551 |
| Accountancy | 2,432 | 2,678 |
| Website Maintenance | 8,079 | 2,617 |
| Bank Charges | 84 | 130 |
| Depreciation of tangible fixed assets | 5,414 | 4,984 |
| 29,293 | 22,144 | |
| Total resources expended | 288,076 | 266,542 |
| Net income | 44,372 | 2,813 |
This page does not form part of the statutory financial statements
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