Manor Twiglets Nursery Limited - Charities report - 19.3.2

REGISTERED COMPANY NUMBER: 07013598 (England and Wales)

REGISTERED CHARITY NUMBER: 1133320

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 August 2019

for

Manor Twiglets Nursery Limited

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

to

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

16

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 August 2019. 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

The charity's objects are to enhance the development and education of children primarily under the

statutory school age by encouraging parents to understand and provide for the needs of their children

through community groups and by:

a) offering appropriate play, education and care facilities, family learning and extended hours groups,

together with the right of parents to take responsibility for and to become involved in the activities of such

groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion,

means or ability;

b) encouraging the study of the needs of such children and their families and promoting public interest in

and recognition of such needs in the local areas;

c) instigating and adhering to and further the aims and objects of the Early Years Alliance (formerly the

Pre-School Learning Alliance).

Activities

The objectives of the charity continued to be to provide a nursery for pre-school children and this can only

be done with prudent financial management. The charity has continued to be supported by East Sussex

County Council and is able to charge subsidised fees to clients that cover the balance of its operating costs.

Additional fundraising activities take place and these funds are used to enhance the facilities and

equipment used by the pre-school.

Public benefit

In carrying out the activities of the charitable company, the trustees have had due regard to the Charity

Commission's guidance on public benefit.

ACHIEVEMENT AND PERFORMANCE

Our charitable company was inspected by Ofsted on 3rd February 2015 and rated Outstanding with an

overall rating of 1 compared to the previous inspection on 22nd November 2010, when we were rated

Good which was a 2. These ratings are on "the quality and standards of the early years provision" for the

pre-school nursery. The rating was split into three categories, all rated as Outstanding:

- How well the early years provision meets the needs of the range of children who attend

- The contribution of the early years provision to the well-being of children

- The effectiveness of the leadership and management of the early years provision

The report conclusion was that "the setting meets the legal requirements for early years settings".

The financial affairs have now been stabilised and we have again recorded a sensible surplus. This has

enabled us to invest in new play equipment.

FINANCIAL REVIEW

A surplus of £33,299 (2018 - £82,223) was generated during the year with general funds increasing to

£199,152 (2018 - £165,853). The trustees consider that these are sufficient reserves to carry out its

objectives.

FUTURE PLANS

The Committee meet regularly to review the performance of the charity and to discuss and agree future

improvement activities. The main objective of the charity is to provide an excellent pre-school experience

for its children and to interact with parents as part of providing that service. The charity is now better

managed with adequate funds to carry out its operations and objectives, but we will always strive to do

better.

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 organisation is a charitable company limited by guarantee, incorporated on 9th September 2009 and

registered as a charity on 16th December 2009. The company was established under a Memorandum of

Association and is governed by its Articles of Association.

In the event of the company being wound up, its members are required to contribute an amount not

exceeding £1 each. There are two classes of member, family - open to parents and family of those children

attending the pre-school, and affiliate - open to others subject to conditions. Due to the low numbers of

family members, we have found it difficult to meet the requirements of the Articles of Association. We

wish to amend them to reduce the quorum needed for General Meetings and add flexibility concerning the

number of members required on the management committee. This will not affect the rights of parents to

become members of the charity, but it will make it easier for meetings to take place that meet the

requirements in the new Articles of Association. Currently only two family members are also trustees and

the attendance at general meetings has meant meeting adjournments due to lack of support. We would

appreciate the support of parents to pass the new Articles of Association, which then have to be approved

by the Early Years Alliance and the Charity Commission.

The nursery has continued with its membership of the Early Years Alliance - membership number 19065,

which is the charity that provides support to pre-schools across the country.

Recruitment and appointment of new trustees

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

Articles they make up the Committee. The objective is that at least 60% of the Committee should be made

up from family members, but this objective has proven difficult to achieve - see the comments on the

Articles of Association above. The Committee will still try to publicise the need for family members to act as

trustees. Trustees are educated in the requirements of trustees and in the way the pre-school operates and

its governance.

The Committee has conducted a review of the major risks to which the charity is exposed, mindful of its

position as a provider of trusted services to young children. All staff are vetted and this is supported within

our Ofsted inspection report.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07013598 (England and Wales)

Registered Charity number

1133320

Registered office

Downsview Crescent

Uckfield

East Sussex

TN22 1UB

Trustees

Mrs F J Bray Nursery manager

Mrs M M B Coleman Headteacher (resigned 16/9/2019)

Mrs M Palmer Teaching assistant (resigned 16/9/2019)

Mrs J Sturt Teacher (resigned 16/9/2019)

Mrs N J Richardson Director

Miss J R Humphrey Purchase ledger clerk

Company Secretary

Mrs F J Bray

Independent Examiner

Swindells LLP

Chartered Accountants

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

This report has been prepared in accordance with the special provisions of Part 15 of Companies Act 2006

relating to small companies.

Approved by order of the board of trustees on 3 April 2020 and signed on its behalf by:

Mrs F J Bray - Trustee

Independent examiner's report to the trustees of Manor Twiglets Nursery Limited ('the Company')

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

31 August 2019.

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.

Ian Jenkins BSc FCA

ICAEW

Swindells LLP

Chartered Accountants

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

24 April 2020

2019

2018

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

397,306

412,853

Other trading activities

3

2,444

2,427

Investment income

4

28

8

Total

399,778

415,288

EXPENDITURE ON

Charitable activities

5

Charity Management & Administration

293,889

270,260

Nursery Direct Costs

30,434

25,914

Overheads

42,156

36,891

Total

366,479

333,065

NET INCOME

33,299

82,223

RECONCILIATION OF FUNDS

Total funds brought forward

165,853

83,630

TOTAL FUNDS CARRIED FORWARD

199,152

165,853

2019

2018

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Tangible assets

11

16,687

17,363

CURRENT ASSETS

Debtors

12

32,471

21,335

Cash at bank and in hand

169,142

149,397

201,613

170,732

CREDITORS

Amounts falling due within one year

13

(19,148

)

(22,242

)

NET CURRENT ASSETS

182,465

148,490

TOTAL ASSETS LESS CURRENT LIABILITIES

199,152

165,853

NET ASSETS

199,152

165,853

FUNDS

14

Unrestricted funds

199,152

165,853

TOTAL FUNDS

199,152

165,853

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2019 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 and authorised for issue on 3 April 2020 and were signed on its behalf by:

F J Bray - Trustee

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.

The presentation currency of the financial statements is the Pound Sterling (£).

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing

these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in

the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

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.

Grants relating to revenue are recognised as income in the period in which the related costs are

incurred. Grants relating to assets are recognised as income on a systematic basis over the expected

useful life of the asset. Where a grant relating to an asset is deferred it is recognised as deferred

income.

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.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Computer equipment

-

25% on cost

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 company contributes to employees' defined contribution pension schemes. Contributions

payable to the pension schemes are charged to profit or loss in the period to which they relate.

2.	DONATIONS AND LEGACIES

2019

2018

£

£

Chargeable Places

157,433

139,347

Donations

-

45

Grants

6,050

11,111

EYEE Funded Hours

227,533

256,706

Hot dinners

5,603

4,543

Scholastic Books

-

60

Uniform sales

687

1,041

397,306

412,853

The charitable company receives funding from East Sussex County Council as part of the Early Years

Entitlement for 2, 3 & 4 year olds.

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

2019

2018

£

£

East Sussex County Council

2,875

7,536

Apprenticeship Grants

2,500

2,000

Wealden District Council

675

1,575

6,050

11,111

3.	OTHER TRADING ACTIVITIES

2019

2018

£

£

Fundraising events

2,444

2,427

4.	INVESTMENT INCOME

2019

2018

£

£

Deposit account interest

28

8

5.	CHARITABLE ACTIVITIES COSTS

Direct

Costs (see

note 6)

£

Charity Management & Administration

293,889

Nursery Direct Costs

30,434

Overheads

42,156

366,479

6.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2019

2018

£

£

Trustees' remuneration etc

50,099

49,221

Staff costs

242,598

220,866

Rates and water

1,531

1,249

Insurance

1,347

853

Telephone and advertising

786

628

Postage and stationery

888

1,331

Accountancy

4,202

3,150

Alarm

192

210

Archive Storage

788

1,232

Computer Costs

815

690

Fundraising Costs

413

607

Legal and Professional

3,811

4,361

Reference Books and Periodical

105

67

Rent

10,263

10,329

Training

2,992

2,818

Staff Vetting

1,192

173

Staff Functions

1,052

1,346

Interest Paid

2

-

Carried forward

323,076

299,131

2019

2018

£

£

Brought forward

323,076

299,131

Bad Debts

2,263

118

Books and Activities

287

299

Cleaning and Maintenance

6,199

1,534

Hot Lunches

5,315

5,513

Play Resources

8,925

9,923

Scholastic Books Cost

31

58

Snacks

1,531

1,162

Supplies

6,524

5,965

Uniforms

1,209

853

Depreciation

10,787

8,509

Loss on sale of assets

332

-

366,479

333,065

Included within accountancy are fees payable to the independent examiner for the independent

examination amounting to £660 (2018 - £560), and for other accountancy services amounting to

£2,949 (2018 - £1,985).

7.	NET INCOME/(EXPENDITURE)

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

2019

2018

£

£

Depreciation - owned assets

10,786

8,509

Deficit on disposal of fixed assets

332

-

8.	TRUSTEES' REMUNERATION AND BENEFITS

During the year, Mrs F J Bray in her capacity as nursery manager received remuneration amounting

to £44,055 (2018 - £43,648). Pension contributions paid on behalf of the trustee amounted to

£1,139 (2018 - £691).

In addition, the nursery manager received staff discounts totalling £nil (2018 - £1,143) throughout

the year.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2019 nor for the year ended

31 August 2018.

9.	STAFF COSTS

2019

2018

£

£

Wages and salaries

274,365

254,346

Social security costs

13,522

12,872

Other pension costs

4,810

2,869

292,697

270,087

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

2019

2018

Nursery staff

19

19

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

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

fund

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

412,853

Other trading activities

2,427

Investment income

8

Total

415,288

EXPENDITURE ON

Charitable activities

Charity Management & Administration

270,260

Nursery Direct Costs

25,914

Overheads

36,891

Total

333,065

NET INCOME

82,223

RECONCILIATION OF FUNDS

Total funds brought forward

83,630

TOTAL FUNDS CARRIED FORWARD

165,853

11.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 September 2018

26,251

10,491

5,191

41,933

Additions

10,157

285

-

10,442

Disposals

(1,329

)

-

(2,000

)

(3,329

)

At 31 August 2019

35,079

10,776

3,191

49,046

DEPRECIATION

At 1 September 2018

12,573

8,848

3,149

24,570

Charge for year

8,419

1,569

798

10,786

Eliminated on disposal

(997

)

-

(2,000

)

(2,997

)

At 31 August 2019

19,995

10,417

1,947

32,359

NET BOOK VALUE

At 31 August 2019

15,084

359

1,244

16,687

At 31 August 2018

13,678

1,643

2,042

17,363

12.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

29,602

20,697

Prepayments and accrued income

2,869

638

32,471

21,335

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Social security and other taxes

3,485

2,748

Other creditors

5,309

7,956

Accruals and deferred income

10,354

11,538

19,148

22,242

Included within accruals and deferred income is £5,000 (2018 - £7,500) relating to a grant from East

Sussex County Council. This grant was to be used for new furniture and equipment for the nursery's

extension and the corresponding cost has been capitalised as a fixed asset. The income is being

recognised over the asset's estimated useful life of four years.

14.	MOVEMENT IN FUNDS

Net

movement

At

At 1.9.18

in funds

31.8.19

£

£

£

Unrestricted funds

General fund

165,853

33,299

199,152

TOTAL FUNDS

165,853

33,299

199,152

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

399,778

(366,479

)

33,299

TOTAL FUNDS

399,778

(366,479

)

33,299

Comparatives for movement in funds

Net

movement

At

At 1.9.17

in funds

31.8.18

£

£

£

Unrestricted funds

General fund

83,630

82,223

165,853

TOTAL FUNDS

83,630

82,223

165,853

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

415,288

(333,065

)

82,223

TOTAL FUNDS

415,288

(333,065

)

82,223

15.	RELATED PARTY DISCLOSURES

Other key management personnel were paid remuneration of £33,914 (2018 - £31,213) throughout

the year.