**Charity registration number 1184254**
## **PURPLE HOUSE NURSERIES**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2022**
## **PURPLE HOUSE NURSERIES**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Ms L M Hilder P Liddle S Wake **Charity number** 1184254 **Principal address** 185 Preston Road Hull East Yorkshire England HU9 5UY **Independent examiner** Fawley Judge & Easton Chartered Certified Accountants 1 Parliament Street Hull East Yorkshire HU1 2AS
## **PURPLE HOUSE NURSERIES**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 10|
## **PURPLE HOUSE NURSERIES**
## **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 charity's [governing document], 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**
In 2019, we established Purple House Nurseries a not for profit Nursery aimed at offering Nursery childcare for 0-5s in association with Winner, the Preston Road Women’s Centre.
Arising from the need observed and expressed by women coming through the women’s centre’s specialist domestic violence and support service, the Trustees worked to develop a financially sustainable service to address this need.
Purple House Nurseries is a separate company limited by guarantee and registered charity, which is co-located at Winner, the Preston Road Women’s Centre .
Its purpose is to provide affordable childcare which supports the work of the women’s centre and local families in the Preston Road area and in the future, in other areas of the city of Hull .
During 20/21 the charity achieved its objectives and also further developed the skills of the staff in supporting children affected by violence and abuse and children with special educational needs and disabilities.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
## **Financial review**
It is the policy of the charity 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 charity ’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.
## **Reserves policy**
The trustees have a policy to keep no more than three months running costs (approximately £18 000) in reserves in order that the charity’s funds can be applied to further its charitable purpose.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Future developments**
In the upcoming year we will continue to maintain and grow the service and look at possible expansion of the service into other areas of the city
## **Structure, governance and management**
The charity is a company limited by guarantee.
The trustees who served during the year and up to the date of signature of the financial statements were:
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## **PURPLE HOUSE NURSERIES**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
Ms L M Hilder
P Liddle S Wake
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' r eport was approved by the Board of Trustees.
**Ms L M Hilder** Trustee Dated: 16 June 2022
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## **PURPLE HOUSE NURSERIES**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PURPLE HOUSE NURSERIES**
I report to the trustees on my examination of the financial statements of Purple House Nurseries (the charity) for the year ended 31 March 2022.
## **Responsibilities and basis of report**
As the trustees of the charity 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 charity’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**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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 financial statements to be reached.
## **Jonathan Leathley, FCCA Fawley Judge & Easton Chartered Certified Accountants**
1 Parliament Street Hull East Yorkshire HU1 2AS
Dated: 16 June 2022
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## **PURPLE HOUSE NURSERIES**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|||**Unrestricted Unrestricted**|**Unrestricted Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2022**|**2021**|
||**Notes**|
**£**|**£**|
|**Income from:**||||
|Donations and legacies|**3**|6,000|31,470|
|Charitable activities|**4**|61,609|58,177|
|**Total income**||67,609|89,647|
|**Expenditure on:**||||
|Charitable activities|**5**|93,079|83,349|
|**Net (expenditure)/income for the year/**||||
|**Net movement in funds**||(25,470)|6,298|
|Fund balances at 1 April 2021||16,958|10,660|
|**Fund balances at 31 March 2022**||(8,512)|16,958|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
## **PURPLE HOUSE NURSERIES**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2022**_
|**2022**
**Notes**
**£**
**Current assets**
Cash at bank and in hand
4,978
**Creditors: amounts falling due within**
**one year**
**9**
(13,490)
Net current (liabilities)/assets
**Income funds**
Unrestricted funds|**£**
(8,512)
(8,512)
(8,512)|**2021**
**£**
18,042
(1,084)|**£**
16,958
16,958
16,958|
|---|---|---|---|
The financial statements were approved by the Trustees on 16 June 2022
Ms L M Hilder **Trustee**
- 5 -
## **PURPLE HOUSE NURSERIES**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **Charity information**
Purple House Nurseries is a Charitable Incorporated Organisation.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], 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 charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
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 charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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.
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.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity 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 charity 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.
- 6 -
## **PURPLE HOUSE NURSERIES**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **(Continued)**
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 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.
## **1.6 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.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.7 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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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## **PURPLE HOUSE NURSERIES**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Donations and gifts|6,000|26,470|
|Awards For All Grant|-|5,000|
||6,000|31,470|
|**Charitable activities**|||
||**Nursery**|
**Nursery**|
||**2022**|
**2021**|
||**£**|
**£**|
|Sales within charitable activities|61,609|
58,177|
## **4 Charitable activities**
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## **PURPLE HOUSE NURSERIES**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **5 Charitable activities**
|Staff costs
Nursery Food
Nursery Learning Materials
Nursery - Toys & Equipment
Nursery Uniforms
Nursery Hygiene
Share of support costs (see note 6)
Share of governance costs (see note 6)
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Training
250
-
Repairs & Maintenance
44
-
Subscriptions
1,021
-
Bank charges
137
-
Printing, Postage and
Stationery
-
-
Computer and software
costs
-
-
Sundry
316
-
Accountancy
-
206
Legal and professional
-
-
1,768
206
Analysed between
Charitable activities
1,768
206|**Nursery**
**Nursery**
**2022**
**2021**
**£**
**£**
87,524
72,798
2,000
1,400
604
59
870
5,277
-
136
107
745
91,105
80,415
1,768
1,855
206
1,079
93,079
83,349
**2022**
Support
costs
Governance
costs
2021
**£**
£
£
£
250
1,133
-
1,133
44
40
-
40
1,021
433
-
433
137
72
-
72
-
23
-
23
-
154
-
154
316
-
-
-
206
-
420
420
-
-
659
659
1,974
1,855
1,079
2,934
1,974
1,855
1,079
2,934|
|---|---|
## **6 Support costs**
Governance costs includes payments to the Independent Examiners of £ 780 .
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## **PURPLE HOUSE NURSERIES**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **8 Employees**
The average monthly number of employees during the year was:
|The average monthly number of employees during the year was:|||
|---|---|---|
||**2022**|**2021**|
||**Number**|**Number**|
||7|6|
|**Employment costs**|**2022**|**2021**|
||**£**|**£**|
|Wages and salaries|87,524|72,798|
|There were no employees whose annual remuneration was more than £60,000.|||
|**Creditors: amounts falling due within one year**|||
||**2022**|**2021**|
||**£**|**£**|
|Trade creditors|12,890|484|
|Accruals and deferred income|600|600|
||13,490|1,084|
## **9 Creditors: amounts falling due within one year**
## **10 Related party transactions**
## **Transactions with related parties**
During the year the charity entered into the following transactions with related parties:
||**Winner, The Preston Road**|**Winner, The Preston Road**|
|---|---|---|
||**Womens Centre**||
||**2022**|**2021**|
||**£**|**£**|
|Salary costs|87,524|72,798|
||87,524|72,798|
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