**REGISTERED COMPANY NUMBER: 01424489 (England and Wales) REGISTERED CHARITY NUMBER: 278093**
**REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 FOR**
## **GINGERBREAD CORNER**
**GINGERBREAD CORNER**
**REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2021**
|Reference and Administrative Details|1|
|---|---|
|Report of the Trustees|2-5|
|Report of the Independent Auditor|6-8|
|Statement of Financial Activities|9|
|Statement of Financial Position|10|
|Notes to the Financial Statements|11-16|
**GINGERBREAD CORNER**
**REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2021**
**Committee of Management** L Hitchcock M Martin F Dussard **Chief Executive** S Dzendzera **Deputy Chief Executive** L Jones **Finance Director** P Carter **Charity Registration Number** 278093 **Company Registration Number** 01424489 **Registered Office** Gingerbread Corner Grenaby Avenue Croydon CR0 2EG **Independent Auditors** DSK Partners LLP Chartered Accountants 75 Park Lane Croydon Surrey CR9 1XS **Bankers** National Westminster plc. Addiscombe Branch 209 Lower Road, Croydon CR9 6RB
1
**GINGERBREAD CORNER**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
The Trustees are pleased to present their Report and Audited Financial Statements for the year ended 31 March 2021.
In preparing the annual report and financial statements, the Trustees have adopted the provisions of the Statement of Recommended Practice, Accounting and Reporting by Charities issued in 2005. The Trustees’ Report is also a Directors’ Report as required by S417 of the Companies Act 2006 and all the Trustees are also Directors.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Formation and Constitution**
The charity was formed in 1976 and registered under The Charities Act 1960 (registration number 278093), becoming a Company Limited by Guarantee (registration number 1424489) in 1979. As such, the liability of the Company Members is limited, where every Member of the Company undertakes to contribute not more than £1 to the assets of the Company in the event that it is wound up while they are a Member or within a year after they cease to be a Member, for the payment of the debts and liabilities of the Company contracted before cessation of Membership, and for the costs, charges and expenses of winding up.
Gingerbread Corner is licensed under Section 19(1) of the Companies Act 1948 to dispense with the word “limited” after our name and, under Section 60 of the Companies Act 2006, this exemption continues. The Company is exempt from taxation.
The income and property of the Company is applied solely towards our objects as set forth in the Memorandum of Association, and Company Members receive no money, directly or otherwise, by way of profit.
## **Board of Trustees**
Gingerbread Corner is controlled by a Board of up to nine Trustees, each of whom is a Company Member.
All Trustees are required to provide two satisfactory references on appointment, as well as a satisfactory DBS certificate, Suitability Declaration and Trustee Eligibility Declaration, each of which must also be done annually thereafter. Trustees are also obliged to declare any potential conflicts of interest.
Our Trustees have Role Descriptions and new Trustees receive a verbal induction from the Chair and/or Chief Executive as well as a comprehensive Information Pack. We aim to run regular in-house Induction and Training Workshops, covering the Board’s legal responsibilities and other issues (such as human resources, equal opportunities, health and safety), as well as enabling team-building.
We believe that qualities such as enthusiasm, dedication and commitment are at least as important as the skills individuals Trustees can bring to the Committee. Trustees are encouraged to take up any external training offers (the costs of which Gingerbread Corner can cover) that may be of use to them.
The Board of Trustees, between 1[st] April 2020 – 31[st] March 2021, comprised:
- Selina Ali (resigned 11[th] November 2020)
- Felisha Dussard
- Linda Hitchcock (Chair)
- Maria Martin
- Viktoriya Ruda-Urbanska (resigned 31[st] July 2020)
## **Organisational Structure**
The Trustees delegate the operational management to the Executive Management Team, comprising Sue Dzendzera (Chief Executive), Leanne Jones (Child Care Director and Deputy Chief Executive), and Paula Carter (Finance Director).
The Out of School, Early Years and Catering Teams are managed by the Head of Childcare Services and the Facilities Team is managed by the Director of IT and Facilities; each of these posts reports to the Child Care Director.
The Trustees meet at least quarterly and are kept informed of relevant issues through regular written reports and other communications from the Executive Management Team. The Chief Executive’s formal reports include information on health and safety issues, changes to legislation, human resources, networking with other agencies, policy reviews, proposed new projects, etc. The Child Care Director’s reports cover subjects such as changes in child care practice, issues around our child care provision centre provision and any complaints, praise or suggestions from clients. The Finance Director provides detailed quarterly information on Gingerbread Corner’s financial performance, including income and expenditure against budget, cash flow projections and progress on fund-raising.
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**GINGERBREAD CORNER**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
## **Human Resources and Training**
We are committed to the continued training and development of our staff. Between them, our staff members have many qualifications and certificates, from NVQs in Child-Care to qualifications in Food Hygiene, Makaton and Change Management. Many of our staff are qualified either in Full or in Paediatric First Aid, and almost all have at least Level 2 in Food Safety and Hygiene.
## **The Public Benefit Test**
Gingerbread Corner’s Trustees have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Public Benefit guidance issued by the Charity Commission. Those of prime relevance to Gingerbread Corner can be seen as including the prevention or relief of poverty and the relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage, although clearly issues around human rights and equality and diversity are also of paramount importance. We also have regard to the advancement of culture and to environmental protection or improvement.
A further requirement of the Charities Act 2006 is that charity Trustees prepare a report of activities which further its charitable purposes for the public benefit, and these activities are detailed on the following pages.
## **Evaluation of Gingerbread Corner’s Charitable Activities, Achievements and Performance**
Gingerbread Corner reduced its objects from seven to the following three to reflect the changes in society and in our client groups and activities since the previous Articles and Memorandum of Association were agreed.
FIRST OBJECT: Improve the social and economic circumstances of disadvantaged families
We achieve this objective by subsidising our excellent child-care facilities for children aged three months to 11 years. We aim to provide best value for money, and to be carers’ first choice child-care centre. From 2019/20, our fee structure has been in six bands, five of them subsidised for carers with lower household incomes. However, particularly given the facilities we provide, even the highest band fees are still extremely competitive.
Unlike many nurseries and out of school schemes, Gingerbread Corner opens every week-day except bank holidays and one day per year for in-service training.
We have a Special Fund, managed by our Family Support Panel, which provides additional financial help to families in need in the following ways: small grants or interest free loans to families in short-term financial difficulty; grants to carers whose college or university bursaries don’t cover the entire cost of their fees; where there is a special or additional need, such as a disability or a mental health issue, longer-term assistance with families’ child care fees. In certain circumstances, the Panel is also able to provide funding for a brief course of Human Givens psychotherapy.
In addition, each member of our staff team works hard to provide a caring environment, not just for the children, but also for their carers. The senior staff in particular provide emotional and practical support to carers who are facing difficulties (such as being in debt, suffering domestic violence or facing homelessness), putting them in touch with those who may be able to help and, in some cases, acting as an advocate.
SECOND OBJECT: preserve, protect and improve the good health (mental, emotional and physical) of children and their carers
We enhance children’s life chances by recording their development and making sure that we act on any concerns and ensuring that they have sufficient exercise. We make every effort to increase our children’s self-esteem and self-confidence, enhance their learning (through play and other activities) and motivate them through creativity and curiosity. Our lunch and snack menus are 75% “homemade” and provide a healthy, nutritious and varied diet, including foods from various cultures.
We seek to improve families’ knowledge and their emotional and mental health by keeping the carers up to date on relevant issues and legislation, via our informative and regularly updated website and Facebook page.
We are proactive in looking for opportunities to work with other agencies, to improve the life chances of carers, children and young people.
THIRD OBJECT: prevent and relieve the suffering of children who have been the subject of cruelty and maltreatment
We take our Safeguarding and Child Protection responsibilities very seriously, ensuring that we are alert to any concerns about our children and that any issues are effectively dealt with (in-house or by referral to other agencies). We will work with other organisations and agencies which aim to make a safer world for children.
3
**GINGERBREAD CORNER**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
## **Risk Management**
We believe we have captured all reasonable financial, operational and regulatory risks, recorded the control measures and put in place plans to manage, mitigate or eliminate the risks.
## **Financial Review**
Gingerbread Corner has not received any funding from Croydon Council since 2012. Whilst this has continued to be challenging, we have nevertheless continued to offer good quality and affordable child-care provision.
As always, as a service provider, the vast majority of our income comes from clients’ fees. As part of the national lockdowns caused by the Covid-19 pandemic we were unable to provide childcare for all but the children of essential and keyworkers workers. Due to this our fee income decreased significantly from £1,035,894 to £500,597 in current year.
Overall, our income was £757,761 inclusive of Coronavirus Job Retention Scheme grants covering Furlough payments to the majority of staff, compared to £1,092,221 in the previous year.
There was a decrease in expenditure from £1,044,939 to £921,509 in the main because, although the building was kept operational this was at a greatly reduced capacity for a large part of the year.
We therefore had a deficit of £163,748 which has reduced our reserves and contingency fund. By the end of 2021/22, it is anticipated that the Reserves Fund will have increased to £97,000 and, by the end of £2022/23, at least £116,000.
## **Reserves Fund**
In line with best practice and legislative requirement, our Reserves Policy is reviewed annually and covers why we hold reserves, the level of reserves held, the steps taken to maintain reserves at the agreed level, contingency fund levels and arrangements for monitoring and reviewing the Reserves Policy.
The Trustees aim is for our reserves to be sufficient to cover our commitments to staff redundancy pay and other contracts assuming a wind-down period of six months and that Gingerbread Corner is protected from insolvency.
## **Contingency and Designated Funds’ Policy**
Under this policy, reviewed annually, funds are transferred, as per the budget, into a Contingency Fund, designated for general contingencies. For the year under review, there is a Designated Fund for capital expenditure on vehicles, as well as expenditure on outdoor play, ICT and catering equipment for which there is no revenue budget.
## **Investment Policy**
Our Investment Policy, reviewed annually, ensures that our funds are properly protected, e.g. that the capital is not put at risk and will be protected against inflation, and that the best income is obtained from those funds with which to carry out our activities.
Trustees bear in mind that any decision to avoid certain investments or institutions must be centred on Gingerbread Corner’s interests. Thus they may decline to invest in a particular company if it carries out activities which are directly contrary to Gingerbread Corner’s purposes or if such an investment would directly impede the furtherance of Gingerbread Corner’s objects, e.g. causing a loss of financial support from subscribers.
## **STATEMENT OF BOARD OF TRUSTEES’ RESPONSIBILITIES**
The Committee Members, who are Trustees and Directors of Gingerbread Corner, are responsible for preparing the Trustees’ Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Company law requires Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources including the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
4
**GINGERBREAD CORNER**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021**
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and for the maintenance and integrity of the corporate and financial information included on the charitable company’s website.
The Trustees confirm that, so far as they are aware, there is no relevant audit information of which the charitable company’s auditor is unaware. They have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Approved by the Board of Trustees on __________________________and signed on its behalf by Order of the Board.
Linda Hitchcock Chair Gingerbread Corner Management Committee
5
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF GINGERBREAD CORNER**
## **Opinion**
We have audited the financial statements of Gingerbread Corner. (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'; and
- - have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
6
**REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF GINGERBREAD CORNER**
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations.
We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities including fraud. The key laws and regulations we have considered in this context included the Companies Act 2006, pension and tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• Using our general commercial and sector experience and through discussions with the directors and management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management’s own assessment of the risks that irregularities may occur either as a result of fraud or error.
• We examined the company's regulatory and legal correspondence and discussed with the directors and management any known or suspected instances of fraud or non-compliance with laws and regulations.
• We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
• In addressing the risk of management override of controls, we tested the appropriateness of journal entries. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
7
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF GINGERBREAD CORNER**
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Romit Basu FCA (Senior Statutory Auditor) For and on behalf of DSK Partners LLP Chartered Accountants and Statutory Auditors 75 Park Lane Croydon Surrey CR9 1XS
Date:
8
## **GINGERBREAD CORNER**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021**
## **INCOME AND EXPENDITURE ACCOUNT**
|**Notes**
**INCOMING RESOURCES**
**Incoming resources from generated funds**
Voluntary income
Government grants receivable
Activities for generating funds
Investment income - interest receivable
Other income
**Incoming resources from charitable activities**
3
**Total incoming resources**
**RESOURCES EXPENDED**
**Costs of generating funds**
4
**Charitable activities**
4
**Governance Costs**
4
**Total resources expended**
4
**Net incoming resources**
**before transfers**
**Gross transfers between funds**
**Net incoming resources**
**before other recognised gains and losses**
**Other recognised gains and losses**
(Loss)/profit on sale of fixed assets
11
**Net movement in funds**
**Total funds at 1 April 2020**
14
**Total funds at 31 March 2021**
14|**Unrestricted**
**Funds**
**£**
12,286
200,558
527
76
43,717
500,597
757,761
6,739
909,211
5,559
921,509
(163,748)
-
(163,748)
-
(163,748)
534,919
371,171|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,856
5,856|**Total 2021**
**£**
12,286
200,558
527
76
43,717
500,597
757,761
6,739
909,211
5,559
921,509
(163,748)
-
(163,748)
-
(163,748)
540,775
377,027|**Total 2020**
**£**
18,207
-
11,011
451
26,658
1,035,894
1,092,221
7,572
1,030,690
6,677
1,044,939
47,282
-
47,282
1,801
49,083
491,692
540,775|
|---|---|---|---|---|
All incoming resources expended are derived from continuing activities.
The notes on pages 11-16 form part of these financial statements.
9
**GINGERBREAD CORNER**
**Company Number 01424489**
## **STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021**
**----- Start of picture text -----**
Notes 2021 2020
£ £ £ £
Fixed Assets
Tangible fixed assets 7 640,865 673,089
Current Assets
Debtors 8 8,395 27,622
Cash at bank and in hand 87,053 190,659
95,448 218,281
Creditors: amounts falling due within one year 9 (96,280) (82,563)
Net Current Assets (832) 135,718
Creditors: amounts falling due after more than one year 10 (263,006) (268,032)
Net Assets 377,027 540,775
Funds
Unrestricted funds 14 371,171 534,919
Restricted funds 14 5,856 5,856
Total Funds 377,027 540,775
**----- End of picture text -----**
The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.
The financial statements were approved by the Committee of Management on …..................... and signed on it's behalf by:
…………………………… …...............……………………… L Hitchcock M Martin Chair Person Committee Member
The notes on pages 11-16 form part of these financial statements.
10
**GINGERBREAD CORNER**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, 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 Companies Act 2006. The financial statements have been prepared under the historical cost convention. The charitable company’s registered company number and registered office address can be found on page 1 of the financial statements.
The financial statements are prepared in sterling which is also the functional currency of the company and rounded to the nearest pound.
## **Going concern**
Since 31 December 2019, the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. In the UK this began on 23rd March 2020 and carried well into 2021. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Governments and central banks have responded with monetary and fiscal interventions to stabilise economic conditions.
The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, still remains unclear at this time. It is not yet possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the company for future periods.
As part of the directors' assessment of going concern, they have prepared detailed cash flow and profit and loss forecasts for the next 12 months. The forecasts have been prepared on an appropriate basis, taking into account the current economic conditions that exist.
After making appropriate enquires, the directors have a reasonable expectation that the company has adequate resources to enable it to continue in operational existence for the foreseeable future. They believe it is appropriate to prepare the accounts on a going concern basis.
## **Fund accounting**
Unrestricted general funds are available for use at the discretion of the Committee of Management in furtherance of the general objectives of the Charity.
The restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund
## **Incoming resources**
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:
- Core income relating to grants is accounted for on a receivable basis. Any grants restricted to future accounting periods are deferred and included in creditors and recognised in future accounting periods.
- Legacies are included when the charity is advised by the personal representatives of an estate that the payment will be made and the amount can be quantified.
- Gifts in kind are included at the value to the charity and are recognised as income when received.
## **Resources expended**
Expenditure is accounted for on an accruals basis. Irrecoverable VAT is included with the item of expense to which it relates.
- Costs of generating funds are those costs incurred in attracting income from fundraising activities.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly and those costs of an indirect nature necessary to support them.
- Governance costs include those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements.
11
**GINGERBREAD CORNER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **Operating leases**
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities as incurred.
## **Tangible fixed assets**
Individual fixed assets costing £500 or more are capitalised at cost.
Tangible fixed assets held for the company’s own use are stated at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives at the following rates
Building conversion costs 25% straight line Motor vehicles 25% straight line Equipment 33.33% straight line Fixtures and fittings 20% straight line Freehold land and buildings 2% straight line Leasehold property 2% straight line Children’s equipment 25% straight line
Assets held under finance leases are depreciated in the same way as owned assets.
At each statement of financial position date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
## **Status of Company**
The company is limited by guarantee and has no share capital. The maximum liability of each member in the event of a winding up is £1.
## **2. TAXATION**
The company is a registered charity and is therefore entitled to the exemptions from corporation tax.
## **3. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES**
**2021 2020 £ £** Fees receivable 500,597 1,035,894
12
## **GINGERBREAD CORNER**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
**----- Start of picture text -----**
4. RESOURCES EXPENDED
Basis of Generating Charitable Governance Total Total
Allocation Funds Activities Costs 2021 2020
£ £ £ £ £ £
Staff costs % of Staff Time 6,523 755,320 2,074 763,917 866,888
Fundraising costs Direct 216 - - 216 312
Catering Direct - 19,741 - 19,741 27,848
Repairs and cleaning Direct - 31,023 - 31,023 30,080
Children's activities Direct - 3,644 - 3,644 12,161
Administration Direct - 5,877 - 5,877 9,581
Transport Direct - 7,279 - 7,279 9,064
Light, heat and telephone Usage - 20,641 - 20,641 18,590
Legal and professional costs Usage - 9,817 3,485 13,302 11,946
Bank charges and interest Transactions - 1,668 1,668 2,701
Sundries Direct - 1,118 - 1,118 524
Staff training Staff Time - 1,399 - 1,399 928
Books and subscriptions Direct - 929 - 929 1,079
Bad debts Direct - - - - -
Depreciation Usage - 40,005 - 40,005 39,599
Loan interest Direct - 7,519 - 7,519 10,735
Rent, rates and insurance Floor Area - 3,231 - 3,231 2,903
6,739 909,211 5,559 921,509 1,044,939
5. GOVERNANCE COSTS 2021 2020
£ £
Auditor's remuneration 3,472 4,330
Legal and finance costs 13 13
Staff costs 2,074 2,334
5,559 6,677
6. STAFF COSTS
2021 2020
Included within staff costs in note 4 are the following: £ £
Wages and salaries 694,790 750,283
Social security costs 36,783 51,099
Pension costs 12,479 13,555
Redundancy costs - 4,880
Other staff costs 19,865 47,071
763,917 866,888
The members of the Committee of Management received no remuneration or reimbursed expenses during the year.
None of the employees received remuneration exceeding £60,000 in the year (2020: none).
The average number of full and part time employees, analysed by function, were: 2021 2020
Childcare 32 31
Support staff 12 13
44 44
**----- End of picture text -----**
Each member of the support staff, which include the Chief Executive, Deputy Chief Executive, Finance Director and Administrator spend a significant proportion of their time on childcare.
13
**GINGERBREAD CORNER**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **7. TANGIBLE FIXED ASSETS**
|**Leasehold**
**Property**
**Fixtures &**
**Fittings**
**£**
**£**
**Cost**
As at 1 April 2020
759,000
81,070
Additions
-
7,781
Disposals
-
-
As at 31 March 2021
759,000
88,851
**Depreciation**
As at 1 April 2020
141,680
69,770
Charge for year
15,180
6,425
Disposals
-
-
As at 31 March 2021
156,860
76,195
**Net Book values**
**As at 31 March 2021**
602,140
12,656
**As at 31 March 2020**
617,320
11,300
**8. DEBTORS**
Fee arrears
Grants receivable
Other debtors and prepayments
**9. CREDITORS:**
**AMOUNTS FALLING DUE WITHIN ONE YEAR**
Fees received in advance
Loan from Future builders
Trade creditors
Social security and other taxes
Other creditors, accruals and deferred income|**Equipment**
**£**
4,830
-
-
4,830
4,294
194
-
4,488
342
536|**Children's**
**Equipment**
**£**
13,483
-
-
13,483
7,540
2,441
-
9,981
3,502
5,943|**Motor**
**Vehicles**
**£**
74,519
-
-
74,519
36,529
15,765
-
52,294
22,225
37,990
**2021**
**£**
1,619
-
6,776
8,395
**2021**
**£**
21,056
17,967
9,928
12,638
34,691
96,280|**Total**
**£**
932,902
7,781
-
940,683
259,813
40,005
-
299,818
640,865
673,089
**2020**
**£**
8,311
4,950
14,361
27,622
**2020**
**£**
13,158
14,251
4,377
14,793
35,984
82,563|
|---|---|---|---|---|
14
**GINGERBREAD CORNER**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
## **10. CREDITORS:**
|**10. CREDITORS:**
**AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Loan from Future builders|**2021**
**£**
263,006
263,006|**2020**
**£**
268,032
268,032|
|---|---|---|
In 2009-2010 Gingerbread Corner received an unsecured loan from Future Builders towards the capital costs of redevelopment of the building. The loan is for 25 years at 6% interest rate with a 20 month repayments holiday, with interest to be rolled up into the remaining years. Repayments of this loan began from March 2011, with interest only payments until April 2013.
|The loans are repayable as follows:
Under one year:
Loan from Future Builders
Between one to five years:
Over five years:|**2021**
**£**
17,967
17,967
71,870
191,136
263,006|**2020**
**£**
14,251
14,251
57,005
211,027
268,032|
|---|---|---|
## **11. RECOGNISED GAINS AND LOSSES**
|**11. RECOGNISED GAINS AND LOSSES**
(Loss)/profit on sale of assets|**2021**
**Unrestricted**
**Funds**
**£**
-|**2020**
**Unrestricted**
**Funds**
**£**
1,801|
|---|---|---|
|**12. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Net Assets at 31st March 2021|**Unrestricted**
**Funds**
**£**
635,009
95,448
(96,280)
(263,006)
371,171|**Restricted**
**Funds**
**£**
5,856
-
-
-
5,856|**Total Funds**
**Funds**
**£**
640,865
95,448
(96,280)
(263,006)
377,027|
|---|---|---|---|
## **13. LEASING AGREEMENTS**
|Minimum lease payments under non-cancellable operating leases fall due as follows:
Within one year
Between one and five years|**2021**
**£**
590
2,064
2,654|**2020**
**£**
-
3,840
3,840|
|---|---|---|
15
## **GINGERBREAD CORNER**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021**
**----- Start of picture text -----**
14. SUMMARY OF FUND MOVEMENTS
Brought Incoming Resources Gains and Carried
Forward Resources Expended Transfers Losses Forward
£ £ £ £ £ £
Unrestricted funds
Fees (78,576) 500,597 (921,509) - - (499,488)
Other Unrestricted funds 613,495 257,164 - - - 870,659
534,919 757,761 (921,509) - - 371,171
Restricted funds
Grants - Children's Centre Equipment & Furniture 4,976 - - - - 4,976
Quality and Access Early Years 5 - - - - 5
Early Years Garden 875 - - - - 875
5,856 - - - - 5,856
Total funds 540,775 757,761 (921,509) - - 377,027
**----- End of picture text -----**
## **Unrestricted funds**
Fees - Fees paid by Parents for childcare services
Other Unrestricted Funds - Income from hire of Gingerbread Corner, fundraising events & donations.
## **Restricted funds**
Grants - Children's Centre Equipment & Furniture - To equip and furnish the family room and Children's Centre reception area. Quality and Access Early Years - To improve the quality of the environment for children and to ensure that all children can access services and benefit fully from them.
Early Years Garden - Funding from Lanfranc school to improve the outside play provision
## **15. RELATED PARTY TRANSACTIONS**
During the year no related party transactions transpired.
During the year no expenses were incurred by the Executive Management Team on behalf of the charity.
16