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2022-03-31-accounts

Charity registration number 1183332

WILLOW CHILDCARE

A CHARITABLE INCORPORATED ORGANISATION ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

WILLOW CHILDCARE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees C Hedges
C Newcombe
H Holdgate
Mr M Nally
Head of Centre M Andrew
Charity number 1183332
Registered office Greenway Avenue
Plympton
Plymouth
PL7 4RR
Independent examiner David Pinder BSc FCA DChA
David Pinder & Co Limited
23 Lockyer Street
Plymouth
Devon
PL1 2QZ
Bankers Lloyds Bank plc
37 Ridgeway
Plympton
Plymouth
PL7 2AP

WILLOW CHILDCARE

CONTENTS

Page
Trustees' report 1 - 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Statement of cash flows 9
Notes to the financial statements 10 - 16

WILLOW CHILDCARE

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their annual report and financial statements for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charitable Incorporated Organisation's constitution, the Charities Act 2011 and "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

The Charitable Incorporated Organisation's objectives are the advancement of the education of children below compulsory school age, in particular by providing or assisting in the provision of nursery facilities by providing safe and satisfying group play and nursery education of a high standard; and the provision of care, recreational and educational facilities for all children outside of normal school hours. This is embodied in The Vision Statement and Aims of the CIO.

The Vision Statement and Aims of the CIO are:

Vision Statement

At Willow Childcare CIO children, parents and carers, staff and trustees work together to create an environment which is challenging, stimulating, creative and enjoyable, where all are encouraged and supported to become independent and lifelong learners and where everyone feels safe, valued and respected.

Aims

The CIO furthers its charitable purposes for the public benefit with its aims:

To develop and maintain a staff team committed to training and development to enable them to provide a high quality service for children and their families that makes a positive difference to their lives.

To promote a partnership approach with families, working with them to meet each child's individual needs.

To help children to develop an understanding of themselves and others and so build trusting and sensitive relationships, enabling them to play and work as part of a community, recognising and valuing difference and demonstrating care and concern for others.

To safeguard children, protect them from abuse and harm, and ensure that they begin to learn how to keep themselves safe.

To provide learning opportunities designed implemented and reviewed so that they foster an appetite for learning and encourage enjoyment.

To help children to understand that a healthy lifestyle includes eating healthily, taking exercise and keeping mentally and emotionally healthy.

To nurture self confidence and self esteem, encourage independence, and involve children in decision making.

To provide clear boundaries for acceptable behaviour using encouragement and praise as rewards to develop children's moral understanding.

To use all opportunities to extend children's learning, indoors, in the local community, and in the natural environment.

To strive for continual improvement in the quality of care and education we provide.

WILLOW CHILDCARE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Performance of the CIO

Willow Childcare endeavours to serve the Woodford community, specifically to provide affordable and local childcare facilities for the community.

The facilities are available daily from 7.30 a.m. - 6.p.m. for 51 weeks of the year.

The CIO works in partnership with Plymouth Early Years Service to provide 15 free flexible hours of early learning for three and four year olds for 38 weeks each year and an additional 15 hours for the children of parents who fulfil government criteria and so are eligible for 30 hours in total.

The Trust works with in partnership with Plymouth Early Years’ Service to provide 15 free flexible hours of early learning for vulnerable two year olds for 38 weeks each year; as well as to provide support for vulnerable families.

The CIO provides an Out of School Club and Holiday Club and in conjunction with the support services; can assist families in need.

The objectives

for

the

year

were:

Key Objectives for 2021 -22:

  1. To expand by leasing the building no longer used by Woodford Children’s Centre so that additional places can be provided to accommodate additional hours of free childcare.

  2. To modify the building to provide additional toilets, cloakroom, more usable office space and a new entrance.

  3. To create a workshop space to provide children with increased opportunities to develop the creative arts.

  4. To form a partnership with ‘Take Art’ in order to host a project with the Soundwaves Network with funding from the Youth Music programme.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charitable Incorporated Organisation should undertake.

Achievements and performance

The main areas of charitable activity are affordable and wrap-around childcare for children aged 3 months to 4 years and holiday and out of school provision for 5 to12 year olds.

Key achievements and performance for 2021-2022:

Work on the additional premises was completed in February 2022 and now provides a new welcoming entrance, improved offices and a multi-purpose meeting room. Improved high quality facilities for the children include toilets, cloakroom and a workshop space where the children can engage in creative activities.

The highly successful Sound Waves Project provided a huge boost to staff after the tribulations of the pandemic through an initial launch and subsequent training. Hence the children continue to learn from enjoyable and creative musical activities. This project has very much enhanced our quality provision. An Ofsted inspection is anticipated as the CIO is a new registration and we will welcome this assessment.

Objective 1. While the lease of the adjoining former Children’s Centre premises has been agreed in principle, and the legal services of Foot Anstey have been engaged, the lease has yet to be signed. So this objective will be carried forward to 2022-2023.

WILLOW CHILDCARE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Financial review

The net deficit (unrestricted) for the year amounted to £3,415 (2021- £nil). The net deficit has been deducted from unrestricted reserves transferred from Woodford Schools Trust on the 1 July 2021.

The accounts are independently examined and these accounts are presented to the trustees at a trustees meeting. The CIO retains a reserve and any surplus is put back into the CIO.

Fees are reviewed 6 monthly to ensure financial sustainability.

Fees were increased in July 2021.

It is the policy of the Charitable Incorporated Organisation that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charitable Incorporated Organisation’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Risk Management

Risk factors include Safeguarding, Health and Safety, Finance and Staffing

Safeguarding is a key consideration for Willow Childcare and is a standing item on the agenda for all scheduled trustee meetings. Enhanced DBS is required for both trustees and employees. Training to ensure all employees are up-to-date is ongoing, including at least one trustee, as part of safe recruiting.

Health and Safety is also a key element for all employees and is included annually at the full staff meeting, which is also attended by a trustee. The board of trustees includes a qualified surveyor who this year has completed a Condition Survey of the new / additional premises.

Risk factors for Finance

Risk factors for Staffing

WILLOW CHILDCARE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods Key Objectives for 2022 – 2023

  1. To expand by leasing the building no longer used by Woodford Children’s Centre so that additional places can be provided to accommodate additional hours of free childcare.

  2. To commission a report on the condition of the roof and carry out repairs to prevent further damage to the building.

  3. To provide professional development opportunities so that experienced practitioners can obtain a Lead Practitioner Level 5 qualification and less experienced practitioners an Early Years Educator Level 3 qualification.

  4. To work with the University of Plymouth and local artists to develop a pedagogical meeting place for artists and Early Years leaders, in order to promote creativity.

Structure, governance and management

The charity is a charitable incorporated organisation, constituted under a trust deed dated 1 July 2021.

In accordance with the Constitution the members of the CIO are the charity trustees, of which there are four. Any member of the trustees may call a meeting; this is usually the Chair. Invitees to the meetings are the Head of Centre, the Business Manager and a representative of the staff. The Head of Centre will normally present her Report and the Business Manager presents financial reports.

A minimum of three meetings are held each year: additional meetings are called in response to specific issues, such as addressing building defects.

The trustees who served during the year and up to the date of signature of the financial statements were: C Hedges

C Newcombe H Holdgate Mr M Nally

Trustees are nominated for appointment by the remaining Trustees as and when vacancies occur.

There must be at least four charity trustees. If the number falls below this minimum, the remaining trustee or trustees may act only to call a meeting of the charity trustees or appoint a new charity trustee.

There is no maximum number of charity trustees that may be appointed to the CIO

WILLOW CHILDCARE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

The Trustees’ Terms of Reference are:

  1. To plan for the strategic development of the Charity

  2. To implement the vision of the Charity

  3. To overview the management and organisation of the Charity

  4. To monitor the financial performance, set the annual budget and maintain sustainability of the Charity

  5. To ensure that all statutory legislation is complied with

  6. To ensure the well-being and work/life balance of staff

  7. To adhere to all charity status requirements.

The Trustees delegate the operational management of the centre to the Head of Centre.

The CIO's policy is to consult and discuss with employees, matters likely to affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the Charity’s performance.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the Charity continues and that the appropriate training is arranged. It is the policy of the Charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Funds held as custodian trustee

Willow Childcare and its Trustees do not act as the Custodian Trustees of any other Charity.

Legal position of the premises: land and buildings

The main building and outdoor areas are leased from Plymouth City Council; with the lease coming up for renewal in 2026. The leasehold interest (as listed in Schedule 4 of the Transfer Agreement) of the Charity was transferred to the CIO by a Property Transfer Deed, dated 1[st] July 2021.

We are in the process of concluding the lease for the additional adjoining premises (the former Children’s Centre), this being in the hands of our solicitors, Foot Anstey.

It is anticipated that the whole premises will be combined into a single lease that will be negotiated in 2026.

The trustees' report was approved by the Board of Trustees.

C Hedges Trustee

30 November 2022

WILLOW CHILDCARE

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WILLOW CHILDCARE

I report to the trustees on my examination of the financial statements of Willow Childcare (the Charitable Incorporated Organisation) for the year ended 31 March 2022.

Responsibilities and basis of report

As the trustees of the Charitable Incorporated Organisation you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Charitable Incorporated Organisation’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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

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

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 financial statements to be reached.

David Pinder BSc FCA DChA

David Pinder & Co Limited

The Institute of Chartered Accountants in England and Wales

23 Lockyer Street Plymouth Devon PL1 2QZ

Dated: 30 November 2022

WILLOW CHILDCARE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
funds
2022
Notes
£
Income and endowments from:
Child care services
2
570,967
Investments
3
6
Other income
4
745
Total income
571,718
Expenditure on:
Charitable activities
5
575,133
Net outgoing resources before transfers
(3,415)
Transfer of net assets from Woodford Schools Trust
1,452,920
Net income for the year/
Net movement in funds
1,449,505
Fund balances at 1 April 2021
-
Fund balances at 31 March 2022
1,449,505		 Total
2021
£
-
-
-
-
-
-
-
-
-
-

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

WILLOW CHILDCARE

BALANCE SHEET

AS AT 31 MARCH 2022

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2022
£
£
586,521
9,173
888,154
897,327
(34,343)
862,984
1,449,505
1,449,505
1,449,505		 2021
£
£
-
-
-
-
-
-
-
-
-		 2021
£
£
-
-
-
-
-
-
-
-
-
-
-
-

The financial statements were approved by the Trustees on 30 November 2022

C Hedges Trustee

H Holdgate Trustee

WILLOW CHILDCARE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

2022
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
14
1,505,349
Investing activities
Purchase of tangible fixed assets
Below
(617,201)
Investment income received
6
Net cash used in investing activities
(617,195)
Net cash used in financing activities
-
Net increase in cash and cash equivalents
888,154
Cash and cash equivalents at beginning of year
-
Cash and cash equivalents at end of year
888,154
Included in the figures are the following items transferred from Woodford Schools Trust
Leasehold premises and fixed assets
425,103		 2021
£
£
-
-
-
-
-
-
-
-		 2021
£
£
-
-
-
-
-
-
-
-
-
-
-

WILLOW CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Charity information

Willow Childcare is a Charitable Incorporated Organisation (CIO) as constituted on 1 July 2021.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charitable Incorporated Organisation's constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The Charitable Incorporated Organisation is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Charitable Incorporated Organisation. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charitable Incorporated Organisation has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the Charitable Incorporated Organisation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charitable Incorporated Organisation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income as set out below.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in normal course of business.

WILLOW CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised on an accrual basis as a liability incurred. Expenditure includes any VAT which cannot be recovered, and is reported as part of the expenditure to which it relates.

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

Other expenditure represents those items not falling into any other heading.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings 25 years Fixtures and fittings 15% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

The depreciation rates for the leasehold premises and improvements are based on an expected lease term to be extended from 2026 for a further 20 years.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charitable Incorporated Organisation is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9 Retirement benefits

The charity operates a defined contribution pension scheme. The pension cost charge represents contributions payable by the trust to the fund in the year in which they are payable. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end.

WILLOW CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

2 Child care services

Child care
services
2022
£
Income within charitable activities
570,967
3
Investments
Unrestricted
funds
2022
£
Interest receivable
6
4
Other income
Unrestricted
funds
2022
£
Other income
745		 2021
£
-
Total
2021
£
-
Total
2021
£
-

WILLOW CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

5 Charitable activities

Child care
services
2022
£
Staff costs
366,526
Depreciation and impairment
30,680
Materials and small equipment
1,393
Food for children and staff
8,777
Health and hygiene
1,824
Toys and equipment
1,117
Staff training
6,413
416,730
Share of support costs (see note 6)
153,723
Share of governance costs (see note 6)
4,680
575,133		 2021
£
-
-
-
-
-
-
-
-
-
-
-

6 Support costs

Staff costs
Premises costs
Office and communication costs
Other costs
Bank charges
Independent examiners fee
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
78,189
-
54,855
-
18,256
-
1,855
-
568
-
-
4,680
153,723
4,680
153,723
4,680		 2022
£
78,189
54,855
18,256
1,855
568
4,680
158,403
158,403

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the Charitable Incorporated Organisation during the year.

WILLOW CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

8 Employees

The average monthly number of employees during the year was:

Childcare employees
Admin & office staff
Support staff
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
Number
22
3
2
27
2022
£
403,738
28,192
12,785
444,715		 2021
Number
-
-
-
-
2021
£
-
-
-
-

There were no employees whose annual remuneration was more than £60,000.

9 Taxation

As a Charitable Incorporated Organisation Willow Childcare is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act of 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

10 Tangible fixed assets

Tangible fixed assets
Leasehold
land and
buildings
Fixtures and
fittings
£
£
Cost
Additions
168,726
23,372
Transfer from Woodford Schools Trust
394,009
31,094
At 31 March 2022
562,735
54,466
Depreciation and impairment
Depreciation charged in the year
22,510
8,170
At 31 March 2022
22,510
8,170
Carrying amount
At 31 March 2022
540,225
46,296		 Total
£
192,098
425,103
617,201
30,680
30,680
586,521

WILLOW CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

11 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
12
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2022
£
8,846
327
9,173
2022
£
7,824
10,086
2,840
13,593
34,343		 2021
£
-
-
-
2021
£
-
-
-
-
-

13 Related party transactions

There were no disclosable related party transactions during the year (2021 - none).

The CIO was under the control of the charity trustees, as detailed on page 4,throughout the year.

14 Cash generated from operations 2022 2021
£ £
Surplus for the year 1,449,505 -
Adjustments for:
Investment income recognised in statement of financial activities (6) -
Depreciation and impairment of tangible fixed assets 30,680 -
Movements in working capital:
(Increase) in debtors (9,173) -
Increase in creditors 34,343 -
Cash generated from/(absorbed by) operations 1,505,349 -
Included in the surplus are the following items transferred from Woodford Schools Trust on 1 July 2021
Bank Balance 1,045,566
Leasehold premises and fixed assets 425,103
Working capital (17,749)
Total 1,452,920

WILLOW CHILDCARE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

15 Analysis of changes in net funds/(debt)

The Charitable Incorporated Organisation had no debt during the year.