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2021-12-31-accounts

Charity registration number: 702691

The Learning Tree

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2021

The Learning Tree

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 3
Statement of Trustees' Responsibilities 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 15
Non-statutory pages 16 to 19

The Learning Tree

Reference and Administrative Details

Chairman Mr R Bennington
Trustees Mrs S Baker
Mr S Mosley
Committee Members for the Nursery and Kids Club in 2021
Mrs C Wise Treasurer
Mrs K Russell Secretary
Mrs E Raisbeck Member
Mrs H Kershaw Member
Mr G Chapman Member
Mrs S Wheelan Member
Principal Office Rear of Carlton Miniott Primary School
Carlton Miniott
Thirsk
North Yorkshire
YO7 4NJ
Charity Registration Number 702691
Independent Examiner Ian Smithson
Public Finance Accountant
3 Orchard Court
Northallerton
North Yorkshire
DL7 8DQ
Accountants Colin Hutson Accounting Limited
Chartered Accountants
74 High Street
Northallerton
North Yorkshire
DL7 8EG

Page 1

The Learning Tree

Trustees' Report

The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2021.

Trustees

Mrs S Baker Mr S Mosley

Objectives and activities

Objects and aims

The Learning Tree's objectives are to provide flexible and accessible child care on an "at cost" and "not for profit" basis. This is maintained by reviewing the hourly rate annually. This allows the Nursery to operate efficiently and effectively, being mindful of cost savings and necessary expenditure only.

Projects that require additional funding are met in the main by fundraising carried out by voluntary assistance.

Objectives, strategies and activities

The Learning Tree Nursery and Kids Club provide a choice of care for children aged between 2 years and 11 years on weekdays between 7:30am and 6:00pm throughout the year. The facilities are registered with local social services and the pre-school activities are subject to Ofsted inspections. The Learning Tree's last inspection by Ofsted was in March 2020, achieving a "Good" rating.

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing the nursery's aims and objectives and in planning future activities.

The Learning Tree Nursery and Kids Club exists to provide pre-school childcare from ages 2-4 and after school club ages 4-11. This provision meets the needs of the local community and allows families to have both partners working where necessary. The hours of the nursery are from 7:30am till 6:00pm, Monday through to Friday. The Nursery also operates thoughout the year encompassing school holidays with closure only over the Christmas period.

The staffing of the nursery is met from the local community with all members being encouraged to follow Personal Development Programmes that meet the training and development plans governed by Ofsted and the local county council.

A close working relationship with the local community school is maintained and the nursery is the major feeder of primary age children starting at age 5.

Throughout the year the children receive a structured development plan of play and educational learning and enter the school at 5 with confidence in themselves and the ability to mix comfortably with children of their own age.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 2

The Learning Tree

Trustees' Report

Achievements and performance

The hourly fee for attendance was reviewed in November 2020, and the Committee resolved not to increase fees to from 1st April 2021 in order to maintain and ensure available funds for recruitment of additional and replacement staff of sufficient calibre, to fund repairs and maintenance, and enable a continued contribution through fees from members towards the foundation fund for the replacement buildings.

This fee rate is considered by the Committee to remain sufficiently low as to meet The Learning Tree's objectives of providing flexible and accessible child care on an "at cost" and not-for-profit basis, taking into account that surplus funds are for the express purpose of providing replacement buildings (and a redundancy contingency reserve) so as to ensure the long-term provision of such services.

Since the end of the period, long standing members of the Committee have resigned and new members of Committee, including key officers, have been appointed and the existing Committee are continuing to hold the reserves for the resolved purposes stated above.

Financial review

As at December 2021 the financial position of The Learning Tree was £106,274.28. This comprises of £94,170.32 in the working account and £12,103.96 in reserves.

The Learning Tree has £12,103.96 in reserve to serve the purpose of potential future redundancies and to fund future activities.

All the committee and Trustees are in agreement that these reserves are necessary.

Structure, governance and management

Recruitment and appointment of trustees

Trustees and committee members are appointed or re-elected annually in November at the Annual General Meeting.

All staff members and parents using the childcare facility are invited to attend and are given one month's notice.

There is a child protection policy in place. DBS checks are carried out prior to commencement of employment, trusteeship or committee activity. The trustees and committee are formed from parents with children attending the facility.

All trustees and committee members give their time voluntarily and do not receive any remuneration or benefits of any kind.

The annual report was approved by the trustees of the charity on 28 October 2022 and signed on its behalf by:

......................................... ......................................... Mrs S Baker Mr S Mosley Trustee Trustee

Page 3

The Learning Tree

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

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 comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees of the charity on 28 October 2022 and signed on its behalf by:

Page 4

The Learning Tree

Independent Examiner's Report to the trustees of The Learning Tree

I report to the trustees on my examination of the accounts of The Learning Tree for the year ended 31 December 2021.

Responsibilities and basis of report

As the charity trustees of The Learning Tree you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the The Learning Tree's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

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

  1. accounting records were not kept in respect of The Learning Tree as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... Ian Smithson CPFA Public Finance Accountant Chartered Institute of Public Finance and Accountancy

3 Orchard Court Northallerton North Yorkshire DL7 8DQ

28 October 2022

Page 5

The Learning Tree

Statement of Financial Activities for the Year Ended 31 December 2021

Note
Income and Endowments from:
Charitable activities
2
Investment income
3
Other income
4
Total income
Expenditure on:
Charitable activities
5
Other expenditure
6
Total expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
17		 Unrestricted
£
207,066
4
504
207,574
(177,445)
(49,634)
(227,079)
(19,505)
154,164
134,659		 Total
2021
£
207,066
4
504
207,574
(177,445)
(49,634)
(227,079)
(19,505)
154,164
134,659		 Total
2020
£
216,639
12
70
216,721
(162,759)
(42,475)
(205,234)
11,487
142,679
154,166

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 and 2021 is shown in note 17.

The notes on pages 8 to 15 form an integral part of these financial statements. Page 6

The Learning Tree

(Registration number: 702691) Balance Sheet as at 31 December 2021

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
15
Creditors: Amounts falling due within one year
16
Net current assets
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
17		 2021
£
25,657
13,350
106,274
119,624
(10,622)
109,002
134,659
134,659
134,659		 2020
£
31,487
12,229
118,275
130,504
(7,825)
122,679
154,166
154,166
154,166

The financial statements on pages 6 to 15 were approved by the trustees, and authorised for issue on 28 October 2022 and signed on their behalf by:

The notes on pages 8 to 15 form an integral part of these financial statements. Page 7

The Learning Tree

Notes to the Financial Statements for the Year Ended 31 December 2021

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with 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 - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

The Learning Tree meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Income including fees, government funding and other fundraising activities is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable 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 that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Page 8

The Learning Tree

Notes to the Financial Statements for the Year Ended 31 December 2021

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including accountancy, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £100 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Copier and computer equipment 25% straight line
Portakabin 10% straight line
Fixtures and fittings 25% straight line

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Page 9

The Learning Tree

Notes to the Financial Statements for the Year Ended 31 December 2021

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

2 Income from charitable activities

Fees and funding
Total for 2021
Total for 2020
3
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
4
Other income
Fundraising events		 Unrestricted
funds
General
£
207,066
Unrestricted
funds
General
£
4
Unrestricted
funds
General
£
504		 Total
2021
£
207,066
Unrestricted
funds
General
£
207,066
207,066
216,639
Total
2021
£
4
Total
2021
£
504		 Total
2020
£
216,639
Total
funds
£
207,066
207,066
216,639
Total
2020
£
12
Total
2020
£
70

Page 10

The Learning Tree

Notes to the Financial Statements for the Year Ended 31 December 2021

5 Expenditure on charitable activities

Direct costs
Staff costs
Governance costs		 Unrestricted
funds
General
£
13,500
161,185
2,760
177,445		 Total
2021
£
13,500
161,185
2,760
177,445		 Total
2020
£
8,456
151,683
2,620
162,759

6 Other expenditure

Note
Depreciation, amortisation and other similar
costs
Other resources expended		 Unrestricted
funds
General
£
5,830
43,804
49,634		 Total
2021
£
5,830
43,804
49,634		 Total
2020
£
6,866
35,609
42,475

7 Analysis of governance and support costs

Governance costs

Unrestricted
funds
General
£
Independent examiner fees
Examination of the financial statements
300
Other governance costs
2,460
2,760
8
Net incoming/outgoing resources
Net (outgoing)/incoming resources for the year include:
Depreciation of fixed assets		 Total
2021
£
300
2,460
2,760
2021
£
5,830		 Total
2020
£
280
2,340
2,620
2020
£
6,866

Page 11

The Learning Tree

Notes to the Financial Statements for the Year Ended 31 December 2021

9 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

10 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Other staff costs		 2021
£
150,951
5,581
2,521
2,132
161,185		 2020
£
144,849
3,509
2,255
1,070
151,683

No employee received emoluments of more than £60,000 during the year

11 Independent examiner's remuneration

2021 2020
£ £
Examination of the financial statements 300 280

12 Taxation

The charity is a registered charity and is therefore exempt from taxation.

Page 12

The Learning Tree

Notes to the Financial Statements for the Year Ended 31 December 2021

13 Tangible fixed assets

Cost
At 1 January 2021
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
14 Debtors
Trade debtors
Prepayments
Other debtors		 Furniture and
equipment
£
58,083
58,083
26,596
5,830
32,426
25,657
31,487
2021
£
8,207
4,556
587
13,350		 Total
£
58,083
58,083
26,596
5,830
32,426
25,657
31,487
2020
£
7,841
4,076
312
58,083
26,596
5,830
32,426
25,657
31,487
2021
£
8,207
4,556
587
13,350
12,229

15 Cash and cash equivalents

Cash on hand
Cash at bank
Bank credit card
Cash and cash equivalents in statement of cash flows		 2021
£
-
106,274
106,274
(1,538)
104,736		 2020
£
4
118,271
118,275
(645)
117,630

Page 13

The Learning Tree

Notes to the Financial Statements for the Year Ended 31 December 2021

16 Creditors: amounts falling due within one year

Bank credit card
Trade creditors
Other taxation and social security
Other creditors
Accruals		 2021
£
1,538
1,393
522
1,733
5,436
10,622		 2020
£
645
2,706
547
101
3,826
7,825

17 Funds

17 Funds
Unrestricted
General
Unrestricted
General		 Balance at 1
January 2021
£
154,164
Balance at 1
January 2020
£
142,679		 Incoming
resources
£
207,574
Incoming
resources
£
216,721		 Resources
expended
£
(227,079)
Resources
expended
£
(205,234)		 Balance at 31
December
2021
£
134,659
Balance at 31
December
2020
£
154,166

Page 14

The Learning Tree

Notes to the Financial Statements for the Year Ended 31 December 2021

18 Analysis of net assets between funds

2021
Tangible fixed assets
Current assets
Current liabilities
Total net assets
2020
Tangible fixed assets
Current assets
Current liabilities
Total net assets
19 Analysis of net funds
Cash at bank and in hand
Bank overdraft
Net debt
Cash at bank and in hand
Bank overdraft
Net debt		 At 1 January
2021
£
118,275
(645)
117,630
117,630
At 1 January
2020
£
97,177
(1,093)
96,084
96,084		 Unrestricted
General
£
25,657
119,624
(10,622)
134,659
Unrestricted
General
£
31,487
130,504
(7,825)
154,166
Financing
cash flows
£
-
645
645
645
Financing
cash flows
£
21,094
-
21,094
21,094		 Total funds
£
25,657
119,624
(10,622)
134,659
Total funds
£
31,487
130,504
(7,825)
154,166
At 31
December
2021
£
118,275
-
118,275
118,275
At 31
December
2020
£
118,271
(1,093)
117,178
117,178

Page 15

The Learning Tree

Statement of Financial Activities by fund for the Year Ended 31 December 2021

Income and Endowments from:
Charitable activities
Investment income
Other income
Total income
Expenditure on:
Charitable activities
Other expenditure
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
Unrestricted
2021
£
207,066
4
504
207,574
(177,445)
(49,634)
(227,079)
(19,505)
(19,505)
154,164
134,659		 Total
Unrestricted
2020
£
216,639
12
70
216,721
(162,759)
(42,475)
(205,234)
11,487
11,487
142,679
154,166

This page does not form part of the statutory financial statements. Page 16

The Learning Tree

Detailed Statement of Financial Activities for the Year Ended 31 December 2021

Income and Endowments from:
Charitable activities (analysed below)
Investment income (analysed below)
Other income (analysed below)
Total income
Expenditure on:
Charitable activities (analysed below)
Other expenditure (analysed below)
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
Unrestricted
2021
£
207,066
4
504
207,574
(177,445)
(49,634)
(227,079)
(19,505)
(19,505)
154,164
134,659		 Total
Unrestricted
2020
£
216,639
12
70
216,721
(162,759)
(42,475)
(205,234)
11,487
11,487
142,679
154,166

This page does not form part of the statutory financial statements. Page 17

The Learning Tree

Detailed Statement of Financial Activities for the Year Ended 31 December 2021

Charitable activities
North Yorkshire County Council
UK Government grants
Fees received
Other
Investment income
Interest on cash deposits
Other income
Fundraising events
Charitable activities
Materials
School meals/food
Wages and salaries
Staff NIC (Employers)
Staff pensions (Defined contribution)
Staff training
Staff welfare
Accountancy fees
Independent examiner's fee
Other expenditure
Advertising
Staff entertaining (allowable for tax)
Software costs
Legal and professional fees
Rent
Water rates
Rates, heat & light
Insurance
Repairs and renewals
Telephone
Computer software and maintenance costs
Printing, postage and stationery
Trade subscriptions		 Total 2021
£
102,635
7,477
96,954
-
207,066
4
4
504
504
(6,308)
(7,192)
(150,322)
(5,581)
(2,521)
(2,132)
(629)
(2,460)
(300)
(177,445)
(530)
(397)
(144)
(6,766)
(9,470)
(1,309)
(1,526)
(3,703)
(4,309)
(1,064)
(40)
(1,461)
(2,791)		 Total 2020
£
102,051
7,966
94,062
12,560
216,639
12
12
70
70
(4,072)
(4,384)
(144,104)
(3,509)
(2,255)
(1,070)
(745)
(2,340)
(280)
(162,759)
(220)
-
(144)
(9,351)
(5,258)
(527)
(1,356)
(3,149)
(3,859)
(2,101)
-
(1,327)
(2,617)

This page does not form part of the statutory financial statements. Page 18

The Learning Tree

Detailed Statement of Financial Activities for the Year Ended 31 December 2021

Charitable donations
Hire of photocopier
Hire of mini bus for trips
Miscellaneous small items
Cleaning
Depreciation of portakabin
Depreciation of photocopier
Depreciation of F&F
Depreciation of computer and software		 -
(190)
(727)
(237)
(9,140)
(5,103)
-
(305)
(422)
(49,634)		 (66)
(255)
(90)
(273)
(5,016)
(5,103)
(220)
(305)
(1,238)
(42,475)

This page does not form part of the statutory financial statements. Page 19