Charters-Ancaster College (1995) - Charities report - 21.1

REGISTERED COMPANY NUMBER: 03174367 (England and Wales)

REGISTERED CHARITY NUMBER: 1054300

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

FOR

CHARTERS-ANCASTER COLLEGE (1995)

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Statement of Financial Position

8

to

9

Statement of Cash Flows

10

Notes to the Statement of Cash Flows

11

Notes to the Financial Statements

12

to

19

TRUSTEES

Mr M J Crump (Chartered Surveyor)

Mr D Young

Ms D Overbury

Mrs S Norman (Speech And Language Therapist)

Mrs F J Kellett (Accountant)

Mrs N Crump

COMPANY SECRETARY

Mr D J Semmens

REGISTERED OFFICE

Number 22

Mount Ephraim

Tunbridge Wells

Kent

TN4 8AS

REGISTERED COMPANY NUMBER

03174367 (England and Wales)

REGISTERED CHARITY NUMBER

1054300

INDEPENDENT EXAMINER

Acuity Professional Partnership LLP

Unit 2.02

High Weald House

Glovers End

Bexhill

East Sussex

TN39 5ES

SOLICITORS

DKLM Solicitors

City House

3 Cranwood Street

London

EC1V 9PE

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 2020. 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 2019).

COVID PANDEMIC

This clearly had a serious impact on the operation of the nursery. The nursery was closed for part of the year on government advice though thanks to the financial management of the Business Manager we emerged from the lock down financially sound.

The Directors also wish to note the extraordinary efforts made by the Nursery Manager, Senior Management Team and all members of staff in operating for a large part of the year under very difficult conditions. This has included putting in place necessary covid avoidance measures and particularly how the individual rooms were manned, moved and kept safe through the use of "bubbles" as well as changing where and how the children were provided with food.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the Nursery are the advancement and education (including social and physical wellbeing) of children from 6 months old and up to 5 years of age, and in particular through the provision of a charitable day nursery accessible to parents and children from all social groups, religious persuasions and ethnicities.

In setting our objectives and planning our activities, the Council have given careful consideration to the Charity Commission's general guidance on the public benefit requirement as defined in section 4 of the Charities Act 2006, in particular to its supplementary public benefit guidance on advancing education and on fee-charging.

Our key objectives for the year include:

" To enhance and improve the quality of the Nursery's provision in all areas; including the requirements of the Early Years Foundation Stage and Safeguarding considerations

" In addition, to provide opportunities for the children to experience a broad range of activities including Forest School, French, Balanceability etc

" To increase pupil numbers

" To continue to recruit and train quality staff

" To play our part in the life of our local community

ACHIEVEMENT AND PERFORMANCE

Charitable activities

ACHIEVEMENT AND PERFORMANCE

Charters Ancaster Nursery and Forest School continues to be an environment where children can develop and learn through play, and where children, parents and staff are involved in a unique family atmosphere. This happy and productive environment has been created by the engagement and support of committed staff and the management team we have in place and I would like to thank them for all their support and hard work.

The children continue to benefit from access to a wide range of activities in respect of outdoor activities including forest school, active play, access to an all-weather play area and extensive grounds and gardens. The focus has been on bringing additional nursery pupils in order to grow the business from within. Creativity such as musical activities, dance, and roleplay continue to be enjoyed. While our aim remains to offer all children the opportunity to participate in the Christmas festivities and the concerts etc these activities have of necessity been curtailed during the last year as a consequence of the covid pandemic.

COMMUNITY SERVICE

Charters Ancaster Nursery continues to assist the community where possible by taking students from local schools and colleges to gain experience in the Nursery. Usually, we take two students yearly from a link school in Germany but this has not been possible during the pandemic. The Nursery continues to fundraise for a variety of local and national charities including St. Michaels Hospice, Comic Relief, Children in Need, and local charities are chosen each year. However again these activities have been hampered during the last year due to the pandemic.

Unfortunately, activities where parents can take part such as the Christmas songs evening and the Christmas, Easter and Summer fairs have also been paused during the covid crisis.

EDUCATIONAL DEVELOPMENTS

The on-line Learning Journey and Assessment tool "Tapestry" has been replaced with "Famly" which has been a great success, being preferred by staff members and welcomed by parents as they can also contribute and access their child's learning Journey on-line if they wish while staff and management can monitor progress and improvements in accordance with Development Matters advisory documents and the Early Years Foundation Stage Government requirements.

MARKETING

The website has enhanced our marketing capabilities and also the use of Facebook and Instagram, which are user friendly for staff, parents and prospective parents and lets them know what is going on and allow them to comment on the nursery. This year we have seen greater engagement in part due to a positive outcome from the covid crisis. Regular newsletters for parents and staff keep them informed of activities.

A simplification and change in the fee structure in line with other Nurseries has increased the competitiveness and attractiveness of the nursery package to parents along with the Forest School and superior Nursery environment. Non-payers have been reduced to a minimum and pursued or excluded.

NURSERY

In September 2017, 30 hours free funding for 3 and 4 year olds was introduced. We had actively planned for this. We extended the age range in the nursery to include children from 6 months to 2 years and a special 'baby room' was opened to improve our appeal and service to working parents. This was very successful and has been expanded subsequently.

During the last year the Nursery was obliged to close during the first lockdown and have staff on furlough but since then the staff have managed to maintain service although some parents didn't send their children to Nursery during much of the year 2020. There have been several staff off work due to maternity leave, injury, ill-health, or shielding in line with statutory requirements. This has caused difficulties in maintaining child/staff ratios but by judicious management, goodwill from staff, new staff being engaged, long hours for some and hard work, the Senior Management Team have managed to keep the Nursery functioning effectively.

Unfortunately, last year due to the pandemic situation the Directors were not able to access the Nursery for covid safety reasons to hold meetings or provide the usual hands-on support, but since January 2021 they have been able to take a more active part and are now re-engaged in management meetings, director meetings and monitoring staff and classes.

The Toddler group 'Catkins' relocated to the Wallis Hall to allow for more space and greater numbers of parents and children to attend has been closed for most of the year due to the covid pandemic. It is a useful and productive introduction for some parents and children to the Nursery and the environment.

FINANCIAL REVIEW

Financial position

As previously reported, the Directors considered on advice from independent insolvency advisors and our accountants that the business model was not sustainable following falling numbers in the school. This was despite substantial donations from the Directors. The Directors however considered that rather than liquidate the company the nursery was viable and to ensure the future of the company elected to enter into a Company Voluntary Arrangement (CVA) closing the school with effect from the 31st August 2017.

In the third year of trading as a nursery only we have met our financial commitments including payment of the three years contribution to the CVA.

Nursery numbers have grown throughout the year and the Directors are confident we can look forward to a secure future.

Reserves policy

Expenditure in the year is carefully managed to support the key objectives of the charity, as described above. It is the policy of the charity to maintain sufficient unrestricted funds, which are the free reserves of the charity, at a level that allows the charity to be managed efficiently and to provide a buffer for uninterrupted services. The Trustees continue to review the three-year strategy document "Forward Together" on an on-going basis.

PRINCIPLE FUNDING SOURCES

The main recurring source of income is from nursery fees and nursery grant from East Sussex. Total income of £504,644 was received from this source.

There were no donations and fund-raising income received during the year.

EXPENDITURE

Expenditure incurred related to the expenses of the establishment and operation of the nursery. The major item of expenditure is staff salaries.

Services have been provided to the charity without charge by a number of members and other people. The services provided by volunteers are not included in the accounts. These are gratefully acknowledged.

FUNDS IN DEFICIT

Ongoing overheads will be reduced in the coming years, with the lease being fully depreciated, going forward positive reserves are therefore expected to be generated.

FUTURE PLANS

The plan to move the 2-year-olds over to the main house and to move the older 4-year-olds upstairs into classrooms in the Main House has been a great success. It is planned to consider opening up other unused rooms for nursery use.

The Directors will continue to work towards maximum viable occupancy and facilitate the growth and continued take up of nursery places particularly by taking more under 2s, and by marketing the excellent facilities we enjoy on site.

We will continue to seek to achieve even better levels of success in respect of the Early Years Foundation Stage, to continue to make Charters Ancaster Nursery and Forest School a caring and loving place for our children and to provide as wide a range of opportunities for learning, development and play as possible.

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.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Risks are identified, assessed and controls established throughout the year.

The key controls used by the charity include:

- clearly defined responsibilities for each council member;

- strategic planning, budgeting and management accounting;

- established organisational structure and lines of reporting; and

- Vetting procedures as required by law for the protection of the vulnerable.

Through the risk management processes established for the charitable company, the council are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Approved by order of the board of trustees on 26 May 2021 and signed on its behalf by:

Mr M J Crump - Trustee

Independent examiner's report to the trustees of Charters-Ancaster College (1995) ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2020.

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.

Deborah Hargreaves

ICAEW

Acuity Professional Partnership LLP

Unit 2.02

High Weald House

Glovers End

Bexhill

East Sussex

TN39 5ES

26 May 2021

2020

2019

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

64,595

-

64,595

-

Charitable activities

5

Nursery and Forest School

494,252

-

494,252

513,064

Other trading activities

3

-

-

-

1,652

Investment income

4

8,800

-

8,800

2,265

Total

567,647

-

567,647

516,981

EXPENDITURE ON

Raising funds

Other trading activities

6

1,489

-

1,489

1,400

1,489

-

1,489

1,400

Charitable activities

7

Nursery and Forest School

536,986

-

536,986

453,445

Total

538,475

-

538,475

454,845

NET INCOME

29,172

-

29,172

62,136

RECONCILIATION OF FUNDS

Total funds brought forward

(142,014

)

-

(142,014

)

(204,150

)

TOTAL FUNDS CARRIED FORWARD

(112,842

)

-

(112,842

)

(142,014

)

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

2020

2019

Notes

£

£

FIXED ASSETS

Tangible assets

13

7,294

8,308

CURRENT ASSETS

Stocks

14

1,174

1,174

Debtors

15

22,124

24,278

Cash at bank and in hand

1,228

508

24,526

25,960

CREDITORS

Amounts falling due within one year

16

(62,277

)

(73,278

)

NET CURRENT ASSETS/(LIABILITIES)

(37,751

)

(47,318

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(30,457

)

(39,010

)

CREDITORS

Amounts falling due after more than one year

17

(82,385

)

(103,004

)

NET ASSETS/(LIABILITIES)

(112,842

)

(142,014

)

FUNDS

21

Unrestricted funds

(112,842

)

(142,014

)

TOTAL FUNDS

(112,842

)

(142,014

)

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 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 26 May 2021 and were signed on its behalf by:

Mr M J Crump - Trustee

Cash flows from operating activities

Cash generated from operations

1

43,847

55,833

Interest paid

(1,653

)

(1,406

)

Finance costs paid

(1,056

)

5,272

Net cash provided by operating activities

41,138

59,699

Cash flows from investing activities

Purchase of tangible fixed assets

(1,023

)

(295

)

Net cash used in investing activities

(1,023

)

(295

)

Cash flows from financing activities

Loan repayments in year

(20,289

)

(45,910

)

Net cash used in financing activities

(20,289

)

(45,910

)

Change in cash and cash equivalents in the reporting period

19,826

13,494

Cash and cash equivalents at the beginning of the reporting period

2

(18,598

)

(32,092

)

Cash and cash equivalents at the end of the reporting period

2

1,228

(18,598

)

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2020

2019

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

29,172

62,136

Adjustments for:

Depreciation charges

2,037

3,544

Interest paid

1,653

1,406

Finance costs

1,056

(5,272

)

Decrease/(increase) in debtors

2,154

(13,048

)

Increase in creditors

7,775

7,067

Net cash provided by operations

43,847

55,833

2.	ANALYSIS OF CASH AND CASH EQUIVALENTS

2020

2019

£

£

Cash in hand

697

508

Notice deposits (less than 3 months)

531

-

Overdrafts included in bank loans and overdrafts falling due within one year

-

(19,106

)

Total cash and cash equivalents

1,228

(18,598

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/9/19

Cash flow

At 31/8/20

£

£

£

Net cash

Cash at bank and in hand

508

720

1,228

Bank overdraft

(19,106

)

19,106

-

(18,598

)

19,826

1,228

Debt

Debts falling due within 1 year

(14,670

)

(330

)

(15,000

)

Debts falling due after 1 year

(103,004

)

20,619

(82,385

)

(117,674

)

20,289

(97,385

)

Total

(136,272

)

40,115

(96,157

)

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 2019)', 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.

Grants receivable under the government's Coronavirus Job Retention Scheme are recognised when there is reasonable assurance that the entity will comply with the conditions attached to the grant and that the grant income will be received.

Grant income relating to the Coronavirus Job Retention Scheme will be recognised in the period to which the underlying furloughed staff costs relate to and when the payroll liability has been incurred by the company.

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.

Short leasehold

-

Straight line over 5 years

Fixtures and fittings

-

20% on cost and 15% on reducing balance

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

HIRE PURCHASE AND LEASING COMMITMENTS

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

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.	DONATIONS AND LEGACIES

2020

2019

£

£

Grants

64,595

-

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

2020

2019

£

£

Coronavirus Job Retention Scheme Grant

64,595

-

3.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Fundraising events

-

1,652

4.	INVESTMENT INCOME

2020

2019

£

£

Rents received

8,800

2,265

5.	INCOME FROM CHARITABLE ACTIVITIES

2020

2019

Activity

£

£

School fees

Nursery and Forest School

484,692

502,992

Meals

Nursery and Forest School

6,169

7,456

Sundry income

Nursery and Forest School

3,391

2,616

494,252

513,064

6.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Uniforms

1,489

1,400

7.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 8)

Totals

£

£

£

Nursery and Forest School

534,075

2,911

536,986

8.	SUPPORT COSTS

Governance

costs

£

Nursery and Forest School

2,911

Fees of £2,400 (2019 - £2,400) were payable to the charity's independent examiner for the independent examination of the charity's accounts.

9.	NET INCOME/(EXPENDITURE)

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

2020

2019

£

£

Depreciation - owned assets

2,037

3,544

Hire of plant and machinery

3,201

2,795

Other operating leases

33,266

29,000

10.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.

11.	STAFF COSTS

2020

2019

£

£

Wages and salaries

401,799

326,179

Social security costs

15,104

13,715

Other pension costs

3,770

839

420,673

340,733

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

2020

2019

Office and administration

35

27

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

12.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

Nursery and Forest School

513,064

-

513,064

Other trading activities

1,652

-

1,652

Investment income

2,265

-

2,265

Total

516,981

-

516,981

EXPENDITURE ON

Raising funds

Other trading activities

1,400

-

1,400

1,400

-

1,400

Charitable activities

Nursery and Forest School

453,445

-

453,445

Total

454,845

-

454,845

NET INCOME

62,136

-

62,136

RECONCILIATION OF FUNDS

Total funds brought forward

(204,150

)

-

(204,150

)

TOTAL FUNDS CARRIED FORWARD

(142,014

)

-

(142,014

)

13.	TANGIBLE FIXED ASSETS

Fixtures

Short

and

leasehold

fittings

Totals

£

£

£

Cost

At 1 September 2019

470,164

89,422

559,586

Additions

-

1,023

1,023

At 31 August 2020

470,164

90,445

560,609

Depreciation

At 1 September 2019

470,164

81,114

551,278

Charge for year

-

2,037

2,037

At 31 August 2020

470,164

83,151

553,315

Net book value

At 31 August 2020

-

7,294

7,294

At 31 August 2019

-

8,308

8,308

14.

STOCKS

2020

2019

£

£

Stocks

1,174

1,174

15.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

22,124

24,278

16.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts (see note 18)

-

19,106

Other loans (see note 18)

15,000

14,670

Trade creditors

7,356

1,425

Social security and other taxes

19,582

18,034

Other creditors

14,874

13,252

Accruals and deferred income

5,465

6,791

62,277

73,278