Maldwyn Nursery & Family Centre - Charities report - 19.2

REGISTERED COMPANY NUMBER: 02573297 (England and Wales)

REGISTERED CHARITY NUMBER: 1001917

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2018

for

Maldwyn Nursery & Family Centre

Maldwyn Nursery & Family Centre

Contents of the Financial Statements

for the Year Ended 31 December 2018

Page

Reference and Administrative Details

1

Report of the Trustees

2 to 7

Independent Examiner's Report

8

Statement of Financial Activities

9

Balance Sheet

10 to 11

Notes to the Financial Statements

12 to 18

Maldwyn Nursery & Family Centre

Reference and Administrative Details

for the Year Ended 31 December 2018

TRUSTEES

H Summers

M J Wright

LA Pryce (resigned 31.1.18)

D Richards

H Evans (appointed 3.9.18)

A Green (resigned 1.5.19)

S Price

E Thomas (appointed 1.5.19)

J White (appointed 1.5.19)

REGISTERED OFFICE

Park Lane

Newtown

Powys

SY16 1DE

REGISTERED COMPANY NUMBER

02573297 (England and Wales)

REGISTERED CHARITY NUMBER

1001917

INDEPENDENT EXAMINER

Morgan Griffiths LLP

Chartered Accountants

Cross Chambers

9 High Street

Newtown

Powys

SY16 2NY

SENIOR MANAGEMENT

Mrs H Rice - Resigned 14.06.19

Mrs B Williams - Appointed 14.06.19

Maldwyn Nursery & Family Centre

Report of the Trustees

for the Year Ended 31 December 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 31 December 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

Objectives and aims

Our aims and objectives are:

- To provide high quality, affordable childcare, where everyone is welcome.

- To create a warm, welcoming, safe, caring and stimulating environment where each child can develop

their social, emotional and educational potential, whilst becoming independent young learners.

- To offer a rich, stimulating, challenging balanced curriculum based on the Early Years Foundation

Phase.

- To ensure that the individual's rights to equal opportunities are met regardless of race, religion, gender

and ability.

- To work in partnership with parents and carers, sharing our professional understanding with their

specialised knowledge of their children's development.

Public benefit

We are confident that the Charity has achieved its primary purpose of providing affordable childcare. This is

apparent when comparing costs and standards with those of other providers in the area and is especially true

when comparing like for like fees as our nursery does not charge for extras. In addition, our Estyn and

CSSIW inspections indicated that we provide a good level of childcare.

The Nursery continues to operate an inclusive policy, welcoming all children through its doors. Assistance is

provided with fees, where appropriate, and we work closely with local social services' staff to provided

emergency places when required.

The trustees have had regard to the Charity Commission's guidance on public benefit when exercising any

powers or duties to which the guidance is relevant.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

A successful year saw a slight increase in numbers using the Day Nursery and out of school provisions. We

are still providing the childcare required by local families, when they want it, in a manner that they want, to suit

their needs.

Our users continue to rate us very highly and are appreciative of the efforts and flexibility shown by the staff

and the nursery as a whole.

Once again, our thanks go to all staff for their determination and hard work.

A highly motivated and skilled workforce is essential to comply with CSSIW and Health & Safety regulations

and we are fortunate in having a professional and loyal workforce.

Services that we provide:

- Full day care

- Foundation Phase funded hours

- Afterschool Club

- Holiday club

- All meals, drinks, and snacks provided

We offer after school services during term times. We collect the children by foot, children from Ladywell

Green School, Hafren School, Ysgol Dafydd Llwyd, and collect from Penygloddfa School and St Mary's

Roman Catholic School.

We also welcome children from other schools, but parents will need to arrange delivery and pick up of

children to Nursery premises.

FINANCIAL REVIEW

Principal funding sources

The principal funding source of the Nursery remains fees and there is no reason why we cannot remain a

thriving, sustainable venture. We are not dependent on grants for sustainability and are, thus, less dependent

on political whims. Our fees remain lower than all other nurseries in the area, continuing to give excellent

value for money. We continue to be a significant local employer and remain confident as to the future viability

of the charity.

Investment policy and objectives

Under the memorandum and articles of association, the charity has the power to make any investments,

which the Trustees see fit. Aside from retaining a prudent amount in reserves each year, the charity's funds

are all spent in the short term. There are no funds available for long term investment.

Funds surplus to day to day needs, which are held in Barclays Bank, are invested in COIF Charity Fund.

Since these funds constitute our reserves it is important that they are invested in low risk category and that

they can be accessed in the short term. They are therefore invested in the deposit account and funds are

available without notice.

Reserves policy

The Charity's funds have all been applied in accordance with its objectives. The Charity's assets are all being

maintained in the furtherance of these objectives.

The Trustees and Directors have established a policy whereby the unrestricted funds not committed or

invested in tangible or intangible fixed assets (i.e. free reserves) held by the Charity should be sufficient to

cover salaries for a period of three months. This is estimated to be in the region of £70,500. Net current

assets on the balance sheet, being free reserves, currently stand at £60,434 (2017 £56,093). Efforts continue

to build free reserves in a sustainable manner and this will remain under review by the Management

Committee.

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the nursery has

adequate resources to continue in operational existence for the foreseeable future. For this reason they

continue to adopt the going concern basis in preparing the financial statements.

FUTURE PLANS

We always aim to improve our Nursery and the opportunities we can provide to the children in our care. Our

future development plans are based on our Nursery's aims and objectives:

To create a warm, welcoming, safe, caring and stimulating environment where each child can develop

their social, emotional and educational potential, whilst becoming independent young learners.

This year we will again be looking for ways to develop our environment to ensure the children's holistic needs

are being met. We were successful in the Tesco Bags of Help scheme where we received a donation towards

improving our park area. We will use the money to buy a basket swing, play house and other outdoor

equipment to expand their opportunities for imaginative play and development.

Having already held a successful painting day in 2018 where the staff all pulled together to support their

nursery and paint rooms we will again continue to freshen and improve our indoor environment by

redecorating the nursery, replacing carpets, and updating some of our toys and furniture, to ensure a variety

of fun activities in a stimulating environment.

We will continue to offer the children the very best care, and support them in their transitions into the nursery

environment, as they progress through the rooms and ultimately their journey up to school life, working closely

with the Foundation Phase Team.

To work in partnership with parents and carers, sharing our professional understanding with their

specialised knowledge of their children's development.

In October 2017 we implemented a new nursery management system which automatically produce registers

and invoices (in-line with information input onto the system). In 2018 we have added our Afterschool club and

Holiday club on to our new nursery management system. As this nursery management system was

implemented late in 2017 we hope that in 2018 - 2019 we will be able to better familiarise parents with the

new system and also add additional information onto our nursery management system in order to get the

most from the new system.

In 2018 the use our new nursery management system is better. We have been able to communicate with

parents,make observations on sleeps, nappies, how well their child has eaten, and sent photos directly to the

parents who are able to access this and all account and invoice information on an app on their phones at any

point throughout their day. We are able to send mass emails to the parents in order to better communicate

messages from the nurseries and advertise nursery events such as fundraisers.

This has been especially beneficial to new parents at the nursery or if children are unsettled or not quite

themselves when they arrive into nursery, so that parents can be reassured throughout the day that their child

is enjoying themselves and having fun with their friends, and lots of comfort.

We have also been able to communicate any changes within the nursery, activities or parent notices directly

to the parents so they can always see what is happening at Maldwyn Nursery and be part of our future

progression.

To offer a rich, stimulating, challenging balanced curriculum based on the Early Years Foundation

Phase.

In 2018 we entered the Flying Start Tender Process. This has been successful and we have been working in

partnership with other professionals to deliver a good standard of learning. We will continue to implement the

principles of the Foundation Phase within our nursery.

To provide high quality, affordable childcare, where everyone is welcome.

We ensure that the individual's rights to equal opportunities are met regardless of race, religion, gender and

ability.

Throughout the next year we will continue to ensure our prices remain affordable without compromising the

care of the children we care for, we will always look to support parents throughout any hardship they may

experience so that the child is always best cared for. We will continue to provide equal opportunities

throughout entrance to the nursery, activities within the nursery and the care the children receive, always

planning our environment so that it's suitable for a mixture of ages and abilities so that all children are

supported and challenged to further their development through play, fun and laughter.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited

by guarantee, as defined by the Companies Act 2006.

The subscribing members of the company undertake to contribute £1 each in the event of its winding up.

Recruitment and appointment of new trustees

The Board has the power to appoint additional trustees as it considers fit to do so. No trustee has any

beneficial interest in the company.

The Directors of the company are also Charity Trustees for the purpose of Charity law and under the

Company's Articles are known as members of the Management Committee. Under the requirements of the

Memorandum and Articles of Association the members of the Management Committee are elected to serve

for a period of one year and must be re-elected at the next Annual General meeting.

The board aims to provide a balance of business, family user and childcare skills on the Management

Committee.

Organisational structure and decision making

The Management Committee meet bi-monthly and are responsible for the strategic direction and policy of the

Charity. Currently the Committee has several members from a variety of professional backgrounds relevant

to the work of the Charity. The Company Secretary and a Staff Representative also sit on the Committee but

have no voting rights.

A system of delegation is in place and day to day responsibility for the provisions of the services rest with the

Manager along with the Management Team. The Manager is the Responsible Individual and responsible for

ensuring the Nursery delivered the services specified, all financial matters and ensuring that key performance

indicators are met. The Deputy Manager is the Person in Charge and is responsible for childcare and

individual supervision of the staff and ensuring that the team continue to develop their skills and working

practices in line with good practice.

The trustees have considered the salary of key management personnel in line with best practice

Induction and training of new trustees

Most trustees are already familiar with the practical work of the Charity as they are usually users of the

Nursery's services.

They will be personally introduced to members of the Board by the Chairman and they will give a brief verbal

introduction of her/him self. They will receive a copy of the Committee Members Handbook which contains

information on Directors' duties and responsibilities along with the Charity Commission's handout and brief

details of the Nursery's services.

Related parties

The Charity ensures that necessary disclosures of any interest are made and registered as necessary at

Committee meetings. In so far as it is complimentary to the Charity's objectives, the Charity is guided by both

local and national policy.

Risk management

A review of potential risks to the Charity was carried out which highlighted the following as the major risks:

- Loss of building due to fire or storm damage (adequate insurance cover is in place). In the event of either

occurrence, there is also Business Interruption Insurance in place to allow us to operate from other premises

for a maximum of 12 months, whilst rebuilding or repair takes place. If no other premises can be found, the

cover in place will pay staff wages for up to one year. The boilers, alarms and fire equipment are subject to

annual maintenance whilst the electrical (PAT), following a review by the Trustees, are now carried out every

other year, last testing carried out in April 2017.

- Loss of contents due to fire, storm damage or theft (adequate insurance cover is in place).

- Potential negligence or abuse by staff (references and a full employment history are taken up for all new

staff and all staff have a DBS check every three years or as required by statute).

- Reduction in demand for child places. The flexibility exists to review staff contracts if and when demand

falls by a significant amount. Also, all efforts are made to ensure that the services offered by the Centre are

of the highest quality, which is supported by the fact the Centre currently holds FSA level 4 Food Rating.

The Trustees are therefore satisfied that the major risks to which the Charity is exposed have been reviewed

and systems have been established to mitigate those risks.

All policies and Procedures and Risk Assessments are regularly updated and are reviewed at least annually.

Approved by order of the board of trustees on 27 September 2019 and signed on its behalf by:

E Thomas - Trustee

Independent Examiner's Report to the Trustees of

Maldwyn Nursery & Family Centre

Independent examiner's report to the trustees of Maldwyn Nursery & Family Centre ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended

31 December 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 ICAEW

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

Thomas Landers BA FCA

ICAEW

Morgan Griffiths LLP

Chartered Accountants

Cross Chambers

9 High Street

Newtown

Powys

SY16 2NY

Date: .............................................

Maldwyn Nursery & Family Centre

Statement of Financial Activities

(Incorporating an Income and Expenditure Account)

for the Year Ended 31 December 2018

31.12.18

31.12.17

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

3

Childcare

407,827

-

407,827

329,606

Investment income

2

67

-

67

30

Total

407,894

-

407,894

329,636

EXPENDITURE ON

Charitable activities

4

Childcare

405,517

-

405,517

347,551

NET INCOME/(EXPENDITURE)

2,377

-

2,377

(17,915

)

RECONCILIATION OF FUNDS

Total funds brought forward

104,571

-

104,571

122,486

TOTAL FUNDS CARRIED FORWARD

106,948

-

106,948

104,571

Maldwyn Nursery & Family Centre

Balance Sheet

At 31 December 2018

31.12.18

31.12.17

Notes

£

£

FIXED ASSETS

Tangible assets

10

46,514

48,532

CURRENT ASSETS

Debtors

11

60,140

55,195

Cash at bank

20,279

17,077

80,419

72,272

CREDITORS

Amounts falling due within one year

12

(19,985

)

(16,233

)

NET CURRENT ASSETS

60,434

56,039

TOTAL ASSETS LESS CURRENT LIABILITIES

106,948

104,571

NET ASSETS

106,948

104,571

FUNDS

15

Unrestricted funds

106,948

104,571

TOTAL FUNDS

106,948

104,571

The charitable company is entitled to exemption from audit under

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

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

31 December 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 provisions applicable to charitable

companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees on 27 September 2019 and were signed on its behalf by:

E Thomas -Trustee

Maldwyn Nursery & Family Centre

Notes to the Financial Statements

for the Year Ended 31 December 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.

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.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the

charitable company's pension scheme are charged to the Statement of Financial Activities in the

period to which they relate.

2.	INVESTMENT INCOME

31.12.18

31.12.17

£

£

Deposit account interest

67

30

3.	INCOME FROM CHARITABLE ACTIVITIES

31.12.18

31.12.17

Activity

£

£

Childcare fees

Childcare

404,827

329,606

Grants

Childcare

3,000

-

407,827

329,606

Grants received, included in the above, are as follows:

31.12.18

31.12.17

£

£

Groundwork UK

3,000

-

4.	CHARITABLE ACTIVITIES COSTS

Direct costs

Support costs

Totals

(See note 5)

£

£

£

Childcare

404,017

1,500

405,517

5.	DIRECT COSTS OF CHARITABLE ACTIVITIES

31.12.18

31.12.17

£

£

Staff costs

314,791

277,914

Rates and water

2,237

4,360

Insurance

6,123

5,493

Light and heat

3,824

6,916

Telephone

2,228

1,035

Postage and stationery

2,014

1,157

Sundries

1,543

2,355

Food

13,448

14,132

Cleaning & Consumables

7,159

7,840

Toys

5,777

3,084

Trips and Drama

1,476

1,262

Repairs and Renewals

3,171

3,885

Bank charges

46

285

Bad Debts

35,518

12,082

Administration

2,280

1,745

Depreciation

2,382

2,506

404,017

346,051

6.	NET INCOME/(EXPENDITURE)

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

31.12.18

31.12.17

£

£

Depreciation - owned assets

2,382

2,506

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2018 nor for

the year ended 31 December 2017.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2018 nor for the year ended

31 December 2017.

8.	STAFF COSTS

Year Ended 31.12.18

Year Ended 31.3.17

£

£

Wages and salaries

311,133

269,480

Social security costs

1,583

7,481

Pensions

2,075

953

314,791

277,914

The average number of employees during the period was as follows:

Nursery Manager

1

1

Nursery Staff

27

25

28

26

The charity considers its key management personnel comprise the senior management listed on page

1. The total employment benefits including employer pension contributions of the key management

personnel for the year ended 31 December 2018 were £22,925 (2017: £18,754).

The number of employees whose emoluments as defined for taxation purposes amounted to over

£60,000 in either period was nil.

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

Restricted fund

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

Childcare

329,606

-

329,606

Investment income

30

-

30

Total

329,636

-

329,636

EXPENDITURE ON

Charitable activities

Childcare

347,551

-

347,551

Total

347,551

-

347,551

NET INCOME/(EXPENDITURE)

(17,915

)

-

(17,915

)

RECONCILIATION OF FUNDS

Total funds brought forward

122,486

-

122,486

TOTAL FUNDS CARRIED FORWARD

104,571

-

104,571

10.	TANGIBLE FIXED ASSETS

Improvements to property

Plant and machinery

Fixtures and fittings

Computer equipment

Totals

£

£

£

£

£

COST

At 1 January 2018

91,907

44,052

4,580

7,891

148,430

Additions

-

-

251

113

364

At 31 December 2018

91,907

44,052

4,831

8,004

148,794

DEPRECIATION

At 1 January 2018

45,036

43,062

4,387

7,413

99,898

Charge for year

1,875

248

111

148

2,382

At 31 December 2018

46,911

43,310

4,498

7,561

102,280

NET BOOK VALUE

At 31 December 2018

44,996

742

333

443

46,514

At 31 December 2017

46,871

990

193

478

48,532

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Trade debtors

36,357

35,518

Prepayments and accrued income

23,783

19,677

60,140

55,195