## **ST PAUL’S CHILDCARE** ## **UNAUDITED REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021** **Charity Registration No. 1175452** 1 ## **ST PAUL’S CHILDCARE** ## **UNAUDITED REPORT AND ACCOUNTS** # **FOR THE YEAR ENDED 31 DECEMBER 2021** ## **CONTENTS** **Page** 3-5 Trustees’ Annual Report 6 Statement of Trustees responsibilities 7-8 Independent Examiner’s Report 9 Statement of Financial Activities 10 Balance Sheet 11-14 Notes on Accounts 2 ## **St Paul’s Childcare Trustees Annual Report for the year ended 31 December 2021** ## **Objectives and Activities** The objective of St Paul’s Childcare (a Charitable Incorporated Organisation number 1175452) is the advancement of the development and education of children and young people in accordance with Christian principles and practice in such a way as the charity trustees think fit. The Charity meets the requirements of the Public Benefit provisions of the Charities Act 2011. To facilitate this St Paul’s Childcare is responsible for overseeing a Breakfast Club, a Nursery and an After School Club, which are registered with Ofsted (Number 2509646) and has a current grading of Outstanding. St Paul’s Childcare paid rent to both the PCC of Tupsley, St. Paul’s Church and St. Paul’s Church of England School for the hire of their facilities in order to achieve its aims. As part of the charity’s response to Covid 19 the trustees agreed to stop renting the facilities provided by St Paul’s school during the year. ## **Achievements and Performance** St Paul’s Childcare CIO began operating on 1st April 2019 and this report covers the year to 31st December 2021. Prior to that date the Childcare operated within the structure of the PCC of St Paul’s (charity number 1134258). ## **Plans for future** The trustees are committed to ensure that there is continual improvement of the childcare setting both in terms of the infrastructure and in terms of the continued development of the skills and training of the employees. ## **Financial Review** The year to 31st December 2021 showed a deficit of £ 24,234 (2020 surplus of £77,324). The unrestricted reserves of the Charity where £58,204 (2020 £82,438) at the year end. Cash reserves stood at £51,804 (2020 £100,103) at the year end. In common with other Childcare settings, Covid has had a significant effect on the charity’s operations this year as it did in 2020. Whilst St Paul’s Childcare benefitted from support from the local authority and government schemes during the year this was £9,393 lower than was received in 2020. This reduction in support was as a result of the government scaling back the benefits available from the Coronavirus Job Retention Scheme. There was a small reduction in income from parent paid nursery, breakfast club and after school club in comparison to 2020. The results for the year were materially affected by redundancy costs of £49,822 (2020 Nil). These costs resulted from a re-structure of the charity and a subsequent reduction in employees to cope with reduced demand of the charity’s services due to Covid 19. 3 ## **St Paul’s Childcare Trustees Annual Report for the year ended 31 December 2021 (cont.)** ## **Reserves policy** It is the policy of St Paul’s Childcare to hold in reserve the equivalent of 3 months running costs, including staff wages and rent. The trustees calculate this to be in the region of £70,000 at the year end. As at the balance sheet date the charity is approximately £18,000 short of this level. The trustees have responded to this shortfall in reserves by carrying out a re-structuring which involved making a number of employees redundant and reducing rent costs. As a result of these changes as at the date of signing these accounts the reserves are now in excess of three months running costs. ## **Structure, governance and management** The method of the appointment of trustees is set out in the Constitution. They are responsible for making decisions on all matters of general concern and importance to the organisation including deciding on how the funds are to be spent. ## **Recruitment and Appointment of Trustees** Trustees are recruited either from members of the PCC of St Paul’s Church or because the trustee has specialist skills that are of value to the operation of the childcare setting. One of the trustees is also the current manager of the setting and is paid a salary on normal commercial terms. New trustees go through an induction process which is determined by the incumbent trustees to familiarise themselves with the ethics and organisation of the setting. ## **Reference and administrative information** ## **Registered Charity name** St Paul’s Childcare **Registered Charity number** 1175452 **Registered/Principal office** c/o St Paul’s Church, Community Centre, Church Road, Tupsley, Hereford, HR1 1RT **Governing document** CIO- Foundation Registered 30 Oct 2017 (England and Wales) **Trustees** Rev. Preb. N P Armstrong Mrs C Evans Mrs K E Bishop resigned 18 October 2021 Mrs C Rushton appointed 18 October 2021 Mrs R Burrow Mrs D J Hartland Mrs H J Wheadon-Griffiths **Bankers** Lloyds TSB Bank plc 8 High Town Hereford HR1 2AE 4 St Paul's Childcare Trustees Annual Report for the year ended 31 December 20211cont.) Independent examinors Haines Watts Hereford Limited Chartered Accountants 3r1 Floor, Broadway House 32-35 Broad Street Hereford HR4 9AR Rlsk Management The Trustees continue to monitor the major risks which the charty fa￿$ and has established systems to reduce those risks. Risks are reviewed at least annually. The main risks include the health and safety of clients and employees alongside the financial viability of the organisation. Fund raislng The charity nomially undertake5 several fund-raising actrvities during the year including cakes sales, sponsored walks and Christmas fares. The amount of money raised is immaterial in comparison with that generated providing childcare. All monies raised are used to provide additional items for the benefit of the children in the setting. As a resuEt of Covid no fund raising acttvities took place during the year. Independent Examiners Haines Watts Hereford Limtted have agreed to offer themselves for re-appointment as independent examiner5 of the charity. On behalf of the board of Trustees Mrs D J Hartland - Chair Date . If.10. 2022 St Paul's Childcare Trustees Annual Report for the year ended 31 December 2021 (cont.) Statement of Trustses, Responsibilities The trustees are responsible for preparing The Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom. Accounting Standards (United Kingdom Generally Accepted Accounting Pradice), FRS102 and the Charities SORP {FRS 102). The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charty and of its incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to.. select suitsble accounting policies and then appty them consistentty; observe the methods and principles in the Charities SORP (FRS 102) -second edition October 2019- make judgements and estimates that are reasonable and prudent; state whether applicable a¢¢ounting standards have been followed, subject to any material departures disdosed and explained in the financial statements, prepare the financial ststement5 on the going ¢on¢ern basis unless it is inappropriate to presume that the charty will continue in a business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements compty with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They are also responsib￿ for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and deteGtion of fraud and other irregularities. On behalf of the Trustees Mrs D J Hartland. Chair of trustees. Ind9pendent Examinevs Report to the Trust805 of St Paul's Chlldcare I report on the accounts of the charity for the year ended 31 December 2021. Respective responsibilitias of trusteos and examiner The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144121 of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. 11 is my responsibility to-. examine the accounts under section 145 of the 2011 Act-, follow the procedures laid down in the general Directions given by the Charity Commission under section 14515llbl of the 2011 Act,. and slate whether particular matters have come to my attention. Basis of independent oxaminerf5 report My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison oflhe accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is givell as to whether the accounts present a "true and fair view. and the report is limited to those fflatters set out in the statement below. Independent examiner's statement In connection with my examination. no matter has come to my attention.. which gives me reasonable cause lo believe that. in any material respect, the requirements.. lo keep accounting records in accordance with section 130 of the 2011 Act,. and to prepare accounts which accord with Ihe accounting records and comply with the accounting requirements of the 2011 Act have not been mel., or to which. in my opinion, attention should be drawn in order to 8nable a proper understanding of the accounts to be reached. Name.. Sophie Powell Relevant professional qualrficalion or body-. FCCA ON BEHALF OF HAINES wA￿s HEREFORD LIMITED Chartered Accountants 3rd Floor Broadway House 32-35 Broad Street Hereford HR4 9AR IÈ lo. IOLL ## **St Paul's Childcare** ## **Statement of Financial Activities (including Income and Expenditure Account) For the year ended 31 December 2021** |**Unrestricted**
**Fund**
_Note_
**£**
Income from charitable activities
Childcare Income
283,088
Other Income
_3_
46,193
Total income
329,281
Expenditure
Expenditure on charitable activities
_4_
353,515
Total expenditure
353,515
Net income/(expenditure) and net movement
in funds for the year
(24,234)
Reconciliation of funds
Total funds brought forward
82,438
Total funds carried forward
58,204|**Total**
**Funds**
**2021**
**£**
283,088
46,193
329,281
353,515
353,515
(24,234)
82,438
58,204|**Total**
**Funds**
**2020**
**£**
285,268
137,086
422,354
345,030
345,030
77,324
5,114
82,438| |---|---|---| All activities are classed as continuing The notes on pages 11 to 14 form part of the accounts 9 St Paul'¥ Ch51dcare 8alance Sheet At 31 Dacember 2021 Noto 2021 2020 Current Assets Cash 81 bank and in hand Debtors 51,804 8,777 60,581 100,103 1,119 101,222 Li8bilili8S Creditors falling due wlhin one year 9170 {2,3771 118,7841 Total assets less current IBbililies 58,204 82,438 The funds of the charity UnTeslricted funds 12 58,204 58.204 82,438 82,438 The notes gn page$ 11 to 14 form part of these accounts The accounts on pages 9 10 14 were approved by thè governing b¢xly and aulhorised for issue on and are signed on their behalf by Mrs C Evans Mrs D J Hartland (Chairl io ## **St Paul's Childcare** ## **Notes on the accounts** ## **For the year ended 31 December 2021** ## **1 Accounting policies** The principal accounting policies adopted, judgements and key sources of estimation /uncertainty in the preparation of the financial statements are as follows: ## a) Basis of preparation St Paul's Childcare ia a Charitable Incorporated Organisation (CIO) registered in England and Wales. The financial statements have been prepared in accordance with the 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), the Charities Act 2011 and the UK Generally Accepted Accounting Practice. St Paul's Childcare meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). ## b) Preparation of accounts on a going concern basis. The trustees consider the funds available will enable the charity to operate for more than one year and on that basis the charity is a going concern. Despite the COVID-19 outbreak in 2020, the charity, with the help of Government grants remained solvent. Whilst reserves and cash fell during 2021 from the start of 2022 cash has increased significantly and the reserves have strengthened. Numbers of children attending the setting increased in 2021 and numbers are looking strong for the new term in September 2022. ## c) Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. ## d) Fund accounting Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside for a specific purpose. Restricted funds are donations which the donor has specified are to be used solely for particular areas of the charity's work or for particular activities carried out by the charity. Endowment funds are not available for spending on day to day activities but income generated forms part of unrestricted income. ## e) Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. ## f) Allocation of support costs Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel and governance costs which support the charity's activities. 11 ## **St Paul's Childcare** ## **Notes on the accounts** ## **For the year ended 31 December 2021** ## g) Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Plant and other equipment is depreciated the year after purchase - 33.33% straight line. ## h) Cash at bank and in hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## i) Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## **2 Legal status of the charity** The Charity is a Charitable Incorporated Organisation (CIO) registered on 30 Oct 2017. The Charity started trading on 1 April 2019. 12 **St Paul's Childcare** ## **Notes on the accounts** ## **For the year ended 31 December 2021** |**3 Analysis of other income**
Coronavirus Job Retention Scheme Grant
Herefordshire Council Grant
Starting Capital from St Paul's Tupsley PCC written off
**4 Analysis of expenditure on charitable activities**
Childcare staff costs
Rent
Nursery expenses
Support costs (Note 5)
**5 Support costs**
IT and website costs
Licences and insurance
Office administration
Independent examination
Training costs|**2021**
**£**
11,180
35,013
-
46,193
310,566
26,373
6,021
10,555
353,515
3,573
853
3,981
1,296
852
10,555|**2020**
**£**
55,586
-
81,500
137,086
294,616
27,317
11,494
11,603
345,030
4,917
862
2,319
2,100
1,405
11,603| |---|---|---| ## **6 Trustees remuneration and expenses** During the year one of the trustees, Mrs Wheadon-Griffiths was employed by the charity. Mrs Wheadon-Griffiths was employed as the setting manager and received remuneration of £26,167 for 2021 (2020 of £11,338). The settings previous manager and a former trustee Mrs S Clayton received remuneration of £11,815 in 2020. During the year one trustee, Mrs Wheadon-Griffiths received reimbursment of expenses totalling £1,230. All these re-imbrused expenses related to expediture for the sole benefit and use of St Paul's Childcare. In the previous year four trustees had reimbursed expenses of £1,229. All the expenses related to items that were bought on behalf of St Paul's Childcare and used by the charity. |**7 Staff costs**
Gross wages
Employers National Insurance costs
Redundancy costs
Employers contributions to a defined contribution pension scheme
**Staff numbers**
Nursery, breakfast club and after school club
Management and administration|**2021**
**£**
245,833
11,763
49,822
3,148
310,566
**2021**
18
3
21|**2020**
**£**
281,647
10,230
-
2,739
294,616
**2020**
24
3
27| |---|---|---| No employees were paid over £60,000 in the current year or previous period. During the year redundancy payments of £49,822 were paid (2020 £nil) none were outstanding at year end. 13 ## **St Paul's Childcare** ## **Notes on the accounts** ## **For the year ended 31 December 2021** |**8 Debtors**
Trade debtors
**9 Creditors: amounts falling due in one year**
Accruals
Fees in advance|**2021**
**£**
8,777
**2021**
**£**
1,296
1,081
2,377|**2020**
**£**
1,119
**2020**
**£**
17,723
1,061
18,784| |---|---|---| ## **10 Related Party Transactions** Rev. Armstrong, Mrs Hartland, Mrs Bishop and Mrs Burrow are also trustees of St Paul's Church PCC Tupsley. During the year St Paul's Childcare paid rent to the PCC of £22,869 (2020 £20,629). Rev. Armstrong and Mrs Burrow are directors of of St Paul's School. During the year St Paul's Childcare paid rent of £3,504 (2020 £6,688) to St Paul's School. During the year the rental agreement was terminated. At the year end the charity owed St Paul's PCC £Nil (2020 £2,408) and St Paul's School £Nil (2020 £896) in respect of rent. In 2020 St Paul's Childcare had a balance of starting capital of £81,500 from St Paul's Church PCC of Tupsley. This starting capital was written off during 2020, therefore the balance in 2021 was nil. ## **11 Unrestricted funds** |**Balance**
**1 January**
**2021**
**£**
General fund
82,438
**12 Analysis of net assets between funds**
Tangible fixed assets
Fixed asset investments
Net current assets|**Income**
**Expenditure**
**Balance**
**31 December**
**2021**
**£**
**£**
**£**
329,281
353,515
58,204
**Unrestricted**
**Total**
**funds**
**£**
**£**
-
-
-
-
58,204
58,204
58,204
58,204| |---|---| ## **13 Post balance Sheet Events** There were no significant post balance sheet events. 14