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Charity registration number: 702691
The Learning Tree
Annual Report and Unaudited Financial Statements
for the Year Ended 31 December 2022
DocuSign Envelope ID: FC1F335D-17C5-483C-8CF5-79B893D4AFD7
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 18 |
DocuSign Envelope ID: FC1F335D-17C5-483C-8CF5-79B893D4AFD7
The Learning Tree
Reference and Administrative Details
Chairman Mr R Bennington Trustees Mrs S Baker Mr S Mosley Ms H D Dean Committee Members for the Nursery and Kids Club in 2022 Mrs K Russell Secretary Mrs E Raisbeck Member Mrs C Wise Member Mrs H Kershaw Member Mr G Chapman Member Mrs S Wheelan Member Ms H Dean Treasurer (appointed 31 May 2023) 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
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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 2022.
Trustees
Mrs S Baker Mr S Mosley Ms H D Dean (appointed 28 July 2023)
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.
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The Learning Tree
Trustees' Report
Financial review
Policy on reserves
Reserve funds are held to cover capital expenditure and cover any future emergency expense.
The trustees consider that approximately three months of operating costs are required to be held as free cash which equates to £60,000. The actual free cash at the year end equates to £77,289 and is therefore broadly in line with the policy which has been set.
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 31 October 2023 and signed on its behalf by:
......................................... ......................................... Mrs S Baker Mr S Mosley Trustee Trustee
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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:
-
select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements 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 31 October 2023 and signed on its behalf by:
......................................... Mrs S Baker Trustee
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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 2022.
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:
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accounting records were not kept in respect of The Learning Tree as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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
31 October 2023
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The Learning Tree
Statement of Financial Activities for the Year Ended 31 December 2022
| 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 £ 234,426 12 - 234,438 (197,712) (53,878) (251,590) (17,152) 134,659 117,507 |
Total 2022 £ 234,426 12 - 234,438 (197,712) (53,878) (251,590) (17,152) 134,659 117,507 |
Total 2021 £ 207,066 4 504 |
|---|---|---|---|
| 207,574 | |||
| (177,445) (49,634) |
|||
| (227,079) | |||
| (19,505) 154,164 |
|||
| 134,659 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 and 2022 is shown in note 17.
The notes on pages 8 to 15 form an integral part of these financial statements. Page 6
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The Learning Tree
(Registration number: 702691) Balance Sheet as at 31 December 2022
| 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 |
2022 £ 20,952 20,114 89,404 109,518 (12,963) 96,555 117,507 117,507 117,507 |
2021 £ 25,657 13,350 106,274 |
|---|---|---|
| 119,624 (10,622) |
||
| 109,002 | ||
| 134,659 | ||
| 134,659 | ||
| 134,659 |
The financial statements on pages 6 to 15 were approved by the trustees, and authorised for issue on 31 October 2023 and signed on their behalf by:
......................................... ......................................... Mr S Mosley Mr R Bennington Trustee Chairman
The notes on pages 8 to 15 form an integral part of these financial statements. Page 7
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The Learning Tree
Notes to the Financial Statements for the Year Ended 31 December 2022
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.
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The Learning Tree
Notes to the Financial Statements for the Year Ended 31 December 2022
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.
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The Learning Tree
Notes to the Financial Statements for the Year Ended 31 December 2022
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 2022 Total for 2021 3 Investment income Interest receivable and similar income; Interest receivable on bank deposits 4 Other income Fundraising events |
Unrestricted funds General £ 234,426 Unrestricted funds General £ 12 |
Total 2022 £ 234,426 Unrestricted funds General £ 234,426 234,426 207,066 Total 2022 £ 12 Total 2022 £ - |
Total 2021 £ 207,066 |
|---|---|---|---|
| Total funds £ 234,426 |
|||
| 234,426 | |||
| 207,066 | |||
| Total 2021 £ 4 |
|||
| Total 2021 £ 504 |
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The Learning Tree
Notes to the Financial Statements for the Year Ended 31 December 2022
5 Expenditure on charitable activities
| Direct costs Staff costs Governance costs |
Unrestricted funds General £ 17,280 177,547 2,885 197,712 |
Total 2022 £ 17,280 177,547 2,885 197,712 |
Total 2021 £ 13,500 161,185 2,760 |
|---|---|---|---|
| 177,445 |
6 Other expenditure
| Note Depreciation, amortisation and other similar costs Other resources expended |
Unrestricted funds General £ 5,267 48,611 53,878 |
Total 2022 £ 5,267 48,611 53,878 |
Total 2021 £ 5,830 43,804 |
|---|---|---|---|
| 49,634 |
7 Analysis of governance and support costs
Governance costs
| Independent examiner fees Examination of the financial statements Other governance costs 8 Net incoming/outgoing resources Net outgoing resources for the year include: Depreciation of fixed assets |
Unrestricted funds General £ 300 2,585 2,885 |
Total 2022 £ 300 2,585 2,885 2022 £ 5,267 |
Total 2021 £ 300 2,460 |
|---|---|---|---|
| 2,760 | |||
| 2021 £ 5,830 |
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The Learning Tree
Notes to the Financial Statements for the Year Ended 31 December 2022
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 |
2022 £ 165,586 7,292 3,120 1,549 177,547 |
2021 £ 150,951 5,581 2,521 2,132 |
|---|---|---|
| 161,185 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| by the charity during the year expressed as full time equivalents was as follows: | |
|---|---|
| 2022 No Nursery Staff 10 No employee received emoluments of more than £60,000 during the year |
2021 No 12 |
| 11 Independent examiner's remuneration | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| £ | £ | |||
| Examination of the financial statements | 300 | 300 |
12 Taxation
The charity is a registered charity and is therefore exempt from taxation.
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The Learning Tree
Notes to the Financial Statements for the Year Ended 31 December 2022
13 Tangible fixed assets
| Cost At 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 14 Debtors Trade debtors Prepayments Other debtors 15 Cash and cash equivalents Cash at bank Bank credit card Cash and cash equivalents in statement of cash flows |
Furniture and equipment £ 58,083 562 58,645 32,426 5,267 37,693 20,952 25,657 2022 £ 15,084 4,443 587 20,114 2022 £ 89,404 (1,263) 88,141 |
Furniture and equipment £ 58,083 562 58,645 32,426 5,267 37,693 20,952 25,657 2022 £ 15,084 4,443 587 20,114 2022 £ 89,404 (1,263) 88,141 |
Total £ 58,083 562 58,645 32,426 5,267 37,693 20,952 25,657 2021 £ 8,207 4,556 587 |
||
|---|---|---|---|---|---|
| 58,645 | |||||
| 32,426 5,267 |
|||||
| 37,693 | |||||
| 20,952 | |||||
| 25,657 | |||||
| 2022 £ 15,084 4,443 587 20,114 2022 £ 89,404 (1,263) 88,141 |
|||||
| 13,350 | |||||
| 2021 £ 106,274 (1,538) |
|||||
| 104,736 |
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The Learning Tree
Notes to the Financial Statements for the Year Ended 31 December 2022
16 Creditors: amounts falling due within one year
| Bank credit card Trade creditors Other taxation and social security Other creditors Accruals |
2022 £ 1,263 635 1,943 1,898 7,224 12,963 |
2021 £ 1,538 1,393 522 1,733 5,436 |
|---|---|---|
| 10,622 |
17 Funds
| 17 Funds | ||||
|---|---|---|---|---|
| Unrestricted General Unrestricted General |
Balance at 1 January 2022 £ 134,659 Balance at 1 January 2021 £ 154,164 |
Incoming resources £ 234,438 Incoming resources £ 207,574 |
Resources expended £ (251,590) Resources expended £ (227,079) |
Balance at 31 December 2022 £ 117,507 |
| Balance at 31 December 2021 £ 134,659 |
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The Learning Tree
Notes to the Financial Statements for the Year Ended 31 December 2022
18 Analysis of net assets between funds
| 2022 Tangible fixed assets Current assets Current liabilities Total net assets 2021 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 2022 £ 106,274 (1,538) 104,736 104,736 At 1 January 2021 £ 118,275 (645) 117,630 117,630 |
Unrestricted General £ 20,952 109,518 (12,963) 117,507 Unrestricted General £ 25,657 119,624 (10,622) 134,659 Financing cash flows £ (16,870) 274 (16,596) (16,596) Financing cash flows £ (12,000) (894) (12,894) (12,894) |
Total funds £ 20,952 109,518 (12,963) |
|
|---|---|---|---|---|
| 117,507 | ||||
| Total funds £ 25,657 119,624 (10,622) |
||||
| 134,659 | ||||
| At 31 December 2022 £ 89,404 (1,264) 88,140 88,140 At 31 December 2021 £ 106,275 (1,539) 104,736 104,736 |
20 Related party transactions
There were no related party transactions in the year.
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The Learning Tree
Detailed Statement of Financial Activities for the Year Ended 31 December 2022
| 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 Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Total Unrestricted 2022 £ 234,426 12 - 234,438 (197,712) (53,878) (251,590) (17,152) (17,152) 134,659 117,507 |
Total Unrestricted 2021 £ 207,066 4 504 |
|---|---|---|
| 207,574 | ||
| (177,445) (49,634) |
||
| (227,079) | ||
| (19,505) | ||
| (19,505) 154,164 |
||
| 134,659 |
This page does not form part of the statutory financial statements. Page 16
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The Learning Tree
Detailed Statement of Financial Activities for the Year Ended 31 December 2022
| Charitable activities North Yorkshire County Council UK Government grants Fees received 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 Hire of photocopier |
Total 2022 £ 104,948 1,741 127,737 234,426 12 12 - - (8,717) (8,563) (164,427) (7,292) (3,120) (1,549) (1,159) (2,585) (300) (197,712) - - (144) (4,233) (13,063) (849) (1,917) (4,070) (6,845) (1,937) (250) (1,143) (2,747) (318) |
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) (190) |
This page does not form part of the statutory financial statements. Page 17
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The Learning Tree
Detailed Statement of Financial Activities for the Year Ended 31 December 2022
| Hire of mini bus for trips Miscellaneous small items Cleaning Depreciation of portakabin Depreciation of F&F Depreciation of computer and software |
(389) (134) (10,572) (5,103) (147) (17) (53,878) |
(727) (237) (9,140) (5,103) (305) (422) |
|---|---|---|
| (49,634) |
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