Busy Bees Blaenavon Day Nursery And Kids - Charities report - 18.1

REGISTERED COMPANY NUMBER: 06495575 (England and Wales)

REGISTERED CHARITY NUMBER: 1126728

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED

31ST AUGUST 2018

FOR

BUSY BEES BLAENAVON DAY NURSERY AND KIDS

CLUB

BUSY BEES BLAENAVON DAY NURSERY AND KIDS

CLUB

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST AUGUST 2018

Page

Report of the Trustees

1 to 4

Independent Examiner's Report

5 to 6

Statement of Financial Activities

7

Balance Sheet

8 to 9

Notes to the Financial Statements

10 to 16

BUSY BEES BLAENAVON DAY NURSERY AND KIDS

CLUB

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31ST AUGUST 2018

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their

report with the financial statements of the charity for the year ended 31st August 2018. The trustees have

adopted the provisions of 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 2015).

OBJECTIVES AND ACTIVITIES

At Busy Bees we aim to:-

o Promote a community ethos where adults and children can reach their full potential.

o Provide a warm, caring, inclusive and family environment for children aged 0 -11 years, where each child

and adult is treated as an individual and their unique qualities are recognised and celebrated.

o To enable children's learning by providing experiences and opportunities that are fun, stimulating and

appropriate.

Ensuring our work delivers our aims

o Continually monitoring local demands and requirements so we can offer a service that is flexible and

accessible.

o Liaising with members of the community such as Health visitors and school representative, as well as

employers, trade associations and local community groups.

o Ensuring our facilities are safe and secure and an appropriate environment for our activities.

How our activities deliver public benefit

o Affordable quality childcare enables parents to continue or return to work, improve their skills with

training and further education. This includes escorting children to and from school and nursery for parents

that would be unable to work without our services.

o Allowing community groups to utilise our facilities to run activities and meetings.

o Supporting families in need of respite or childcare to enable them to better their quality of life for

themselves and their children.

o Actively employing local people and providing on the job training and experience opportunities for

students.

o Working in tandem with local health professionals to target families in need and delivering a service that

improves the quality of life of the whole family.

FINANCIAL REVIEW

During 2017-2018 Busy Bees has continued to expand, but so have the outgoings. We built a stud wall in the

autumn; we hope to recoup some of this outlay from the RDF.

The building at Park Street continues to require a lot of maintenance, which is financially draining. Our

utility costs have grown by 40%, hopefully replacing the boiler and repairing broken window frames will

reduce these bills.

Staff cost have risen due to the National Living Wage, 11% increase - the same increase as in 2016-

2017. We have had to increase fees to cover the costs, but it is still very difficult to manage our cash flow.

We have taken a loan out to manage this cash flow issue. It will also serve as a pot of money to use to

refurbish the building as the RDF pays claims after the event.

Over the year, the amount of Flying Start children has increased, which improves our financial status. Last

year the numbers dropped but not enough that we were able to decrease the wages bill.

Total fees have increased by less than 1% during the period - the amount of outstanding fees has

grown. We have much better systems in place to manage non-payers but unfortunately there have been some

large amounts accrued very quickly. As of the 31st of August 2018 there was just under £25000 in unpaid

fees. This is nearly enough to cover one month's wages bill.

Over the next year there will be some more changes as the governments free 30 hour childcare offer is

introduced here at Bees. We hope that this will increase our income, although it is difficult to predict how it

will effect staffing and costs at this point.

Principle Funding Sources

Aside from the principle income generated by the services we provide, we continue to receive funding from

Torfaen County Borough Council and Blaenau Gwent Council to provide Free Flying Start preschool places

within both Busy Bees Blaenavon and at BICC. We also received funding in the form of a loan from The

Development Bank of Wales, which is being repaid over a five year period.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on the 6th of February 2008 and

registered as a charity on the 30th of June 2008. The company was established under a

Memorandum of Association which established the objects and powers of the charitable company and is

governed under its Articles of Association. In the event of the company being wound up members are

required to contribute an amount not exceeding £1.

Recruitment and appointment of Management Committee

The directors of the company are also charity trustees for the purposes of charity law and under the

company's Articles are known as members of the Management committee.

All members of the Management Committee give their time voluntarily and receive no benefit from the

charity. C F Boddington, S J Driscoll, S M Gallear and T J John are trustees and employees of the charity

but only receive remuneration for their employment roles.

The Management Board has a mix of parents and staff to ensure that all aspects are covered and that it can

be functional as a Board.

Organisational structure

Busy Bees has a Management Board of ten members who meet monthly and are responsible for the

strategic direction and policy of the charity. The Management Board at present has several members from

professional backgrounds and several who do not in order to fully represent the community we support.

A Management structure is in place. Day to day responsibility for smooth running rests with the Nursery

Manager, supported by three deputy managers and supervisors. The Nursery Manager reports to the

Management Board.

Responsibilities of the Management Committee

Company law requires the Management Committee to prepare financial statements for each financial year

which give a true and fair view of the affairs of the company as at the balance sheet date and of its incoming

resources and application of resources, including income and expenditure, for the financial year. In

preparing those financial statements, the management board should follow best practices and:

Select suitable accounting policies and then apply them consistently.

Make judgements and estimates that are reasonable and prudent; and

Prepare the financial statements on the going concern basis unless it is not appropriate to assume that the

company will continue on that basis.

The management board is responsible for maintaining proper accounting records which disclose with

reasonable accuracy at any time the financial position of the charitable company and to enable them to

ensure that the financial statements comply with the Companies Act 2006. The Management Board is 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.

Members of the Management Committee

Members of the Management Committee, who are directors for the purpose of company law and trustees

for the purpose of charity law, who served during the year and up to the date of this report are set out on

page 4.

In accordance with company law, as the company directors, we certify that;

So far as we are aware, there is no relevant information of which the company directors are unaware; and

As the directors of the company we have taken all the steps that we ought to have taken in

order to make ourselves aware of any relevant information and to establish that the management board is

aware of that information.

Related parties

o Wales PPA

o Clybiau Plant Cymru Kids Club

Risk management

Day to day risk assessment procedures and policies are in operation throughout the nursery. These are

maintained and reviewed by the Manager. Procedures are in place to ensure compliance with health

and safety of staff, volunteers, clients and visitors to the building and to the satellite group Busy Bees at

BICC.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

06495575 (England and Wales)

Registered Charity number

1126728

Registered office

Busy Bees Park Street

Blaenavon

Pontypool

Torfaen

NP4 9AA

Trustees

C F Boddington

Finance officer

S J Driscoll

Nursery Manager

S M Gallear

Childcare

A L Foster

Marketing Executive

T J John

Nursery Supervisor

C E Keeling

Housewife

- resigned 1.8.18

A J Lay

Health And Social Care Trainer

- resigned 1.12.17

D L O'leary

NHS

- resigned 1.12.17

J M Watkins

Podiatrist

T R Wood

Director

J Walters

Childcare Practitioner

- appointed 1.12.17

S Thomas

Childcare Practitioner

- appointed 1.12.17

Company Secretary

C F Boddington

Independent examiner

Barrie Kenyon

ACCA

Green & Co

Chartered Certified Accountants

Pembroke House

Llantarnam Park Way

Cwmbran

Torfaen

NP44 3AU

Approved by order of the board of trustees on 18th March 2019 and signed on its behalf by:

C F Boddington - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

BUSY BEES BLAENAVON DAY NURSERY AND KIDS

CLUB

Independent examiner's report to the trustees of Busy Bees Blaenavon Day Nursery And Kids Club

('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st August 2018.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ACCA which is one of the listed bodies

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

1.

accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.

the accounts do not accord with those records; or

3.

the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

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

Barrie Kenyon

ACCA

Green & Co

Chartered Certified Accountants

Pembroke House

Llantarnam Park Way

Cwmbran

Torfaen

NP44 3AU

18th March 2019

BUSY BEES BLAENAVON DAY NURSERY AND KIDS

CLUB

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31ST AUGUST 2018

Period

1.9.15

Year Ended

to

31.8.18

31.8.17

Unrestricted fund

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3,553

-

3,553

2,881

Charitable activities

Childcare

261,095

87,950

349,045

326,525

Total

264,648

87,950

352,598

329,406

EXPENDITURE ON

Charitable activities

Childcare

261,230

100,889

362,119

325,895

Other

-

-

-

2,765

Total

261,230

100,889

362,119

328,660

NET INCOME/(EXPENDITURE)

3,418

(12,939

)

(9,521

)

746

Transfers between funds

11

11,449

(11,449

)

-

-

Net movement in funds

14,867

(24,388

)

(9,521

)

746

RECONCILIATION OF FUNDS

Total funds brought forward

3,974

17,922

21,896

21,150

TOTAL FUNDS CARRIED FORWARD

18,841

(6,466

)

12,375

21,896

BUSY BEES BLAENAVON DAY NURSERY AND KIDS

CLUB

BALANCE SHEET

AT 31ST AUGUST 2018

2018

2017

Unrestricted fund

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

6

316

13,442

13,758

18,343

CURRENT ASSETS

Debtors

7

23,794

-

23,794

14,858

Cash at bank

4,188

-

4,188

-

27,982

-

27,982

14,858

CREDITORS

Amounts falling due within one year

8

(9,456

)

(3,496

)

(12,952

)

(11,305

)

NET CURRENT ASSETS/(LIABILITIES)

18,526

(3,496

)

15,030

3,553

TOTAL ASSETS LESS CURRENT LIABILITIES

18,842

9,946

28,788

21,896

CREDITORS

Amounts falling due after more than one year

9

-

(16,413

)

(16,413

)

-

NET ASSETS/(LIABILITIES)

18,842

(6,467

)

12,375

21,896

FUNDS

11

Unrestricted funds

18,842

3,974

Restricted funds

(6,467

)

17,922

TOTAL FUNDS

12,375

21,896

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31st August 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended

31st August 2018 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)

ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the

Companies Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 18th March 2019 and were signed on its behalf by:

S J Driscoll -Trustee

BUSY BEES BLAENAVON DAY NURSERY AND KIDS

CLUB

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST AUGUST 2018

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 2015)', 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.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to

the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation

committing the charity to that expenditure, it is probable that a transfer of economic benefits will be

required in settlement and the amount of the obligation can be measured reliably. Expenditure is

accounted for on an accruals basis and has been classified under headings that aggregate all cost

related to the category. Where costs cannot be directly attributed to particular headings they have

been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its

estimated useful life.

Fixtures and fittings

- 25% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the

trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity.

Restrictions arise when specified by the donor or when funds are raised for particular restricted

purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial

statements.

2.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Period

1.9.15

Year Ended

to

31.8.18

31.8.17

£

£

Depreciation - owned assets

4,585

6,115

3.	TRUSTEES' REMUNERATION AND BENEFITS

C F Boddington, S J Driscoll, S M Gallear and T J John were employees and trustees of the charity

during the year and received a total remuneration of £49,122. The employees were paid solely for

their roles in childcare, management and administration. No remuneration or benefits were given for

acting as a trustee of the charity.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st August 2018 nor for the period ended

31st August 2017.

4.	STAFF COSTS

The average monthly number of employees during the year was as follows:

Period

1.9.15

Year Ended

to

31.8.18

31.8.17

Manager

1

1

Deputy Manager

5

5

Supervisor

1

1

Assistant

19

19

Auxiliary

5

4

31

30

No employees received emoluments in excess of £60,000.

5.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

Restricted funds

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2,881

-

2,881

Charitable activities

Childcare

262,548

63,977

326,525

Total

265,429

63,977

329,406

EXPENDITURE ON

Charitable activities

Childcare

240,729

85,166

325,895

Other

2,765

-

2,765

Total

243,494

85,166

328,660

NET INCOME/(EXPENDITURE)

21,935

(21,189

)

746

Transfers between funds

(15,216

)

15,216

-

Net movement in funds

6,719

(5,973

)

746

RECONCILIATION OF FUNDS

Total funds brought forward

(2,746

)

23,896

21,150

TOTAL FUNDS CARRIED FORWARD

3,973

17,923

21,896

6.	TANGIBLE FIXED ASSETS

Fixtures and fittings

£

COST

At 1st September 2017 and 31st August 2018

88,786

DEPRECIATION

At 1st September 2017

70,443

Charge for year

4,585

At 31st August 2018

75,028

NET BOOK VALUE

At 31st August 2018

13,758

At 31st August 2017

18,343

7.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

20,691

14,858

Other debtors

3,103

-

23,794

14,858

8.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts (see note 10)

3,496

637

Other loans (see note 10)

348

3,000

Trade creditors

615

2,627

Social security and other taxes

5,953

241

Accruals and deferred income

2,540

4,800

12,952

11,305

9.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans (see note 10)

16,413

-

10.

LOANS

An analysis of the maturity of loans is given below:

2018

2017

£

£

Amounts falling due within one year on demand:

Bank overdraft

-

637

Bank loans

3,496

-

Other loans

348

3,000

3,844

3,637

Amounts falling between one and two years:

Bank loans

3,660

-

Amounts falling due between two and five years:

Bank loans

12,753

-

11.	MOVEMENT IN FUNDS

At 1.9.17

Net movement in funds

Transfers between funds

At 31.8.18

£

£

£

£

Unrestricted funds

General fund

3,974

3,419

11,449

18,842

Restricted funds

Restricted fund

4,517

(9,589

)

(11,449

)

(16,521

)

Other fixed assets

13,405

(3,351

)

-

10,054

17,922

(12,940

)

(11,449

)

(6,467

)

TOTAL FUNDS

21,896

(9,521

)

-

12,375

Net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

264,648

(261,229

)

3,419

Restricted funds

Restricted fund

87,950

(97,539

)

(9,589

)

Other fixed assets

-

(3,351

)

(3,351

)

87,950

(100,890

)

(12,940

)

TOTAL FUNDS

352,598

(362,119

)

(9,521

)