Manor Twiglets Nursery Limited - Charities report - 21.1

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 2020

for

Manor Twiglets Nursery Limited

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

18

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).

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 by:

a) offering appropriate play opportunities, education in accordance with the development matters section of the Early Years Foundation Stage and providing nurture and care, family learning and extended hours for working parents, together with the right of parents to take responsibility for and to become involved in the activities of such fundraising, ensuring that all the opportunities and activities that we offer are for all children whatever their race, culture, religion, means or ability;

b) encouraging the study of the needs of children and their families in our local area and promoting public interest in our nursery and the recognition of needs;

c) instigating and adhering to and further the aims and objects of the Early Years Alliance and the Statutory Guidance for the Early Years Foundation Stage.

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 Nursery continues to be able to claim Early Years Education Entitlement from East Sussex County Council for children eligible and to charge fees to clients that cover the balance of its operating costs. Additional fundraising activities take place throughout the year 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 12th December 2019 and rated Outstanding with an overall rating of 1 compared to the previous inspection on 3rd February 2015, when we were also rated Outstanding. These ratings are on "the quality and standards of the early years provision" for the pre-school nursery. The rating was split into four categories, these were all rated as Outstanding:

- The Quality of Education

- Behaviour and Attitudes

- Personal Development

- Leadership and Management

The report concluded that "the provision is outstanding".

Due to the unusual end to the financial year due to Covid-19 Pandemic, we will need to recoup funds lost due to the nursery closing for the period from 27th March 2020 - 1st June 2020 and for the reduced number of privately paid places during the Summer term, After School and Holiday clubs. However, the opportunities and education that we provide for the children and families that attend Manor Twiglets Nursery has not and will not be affected currently due to the deficit in funds.

FINANCIAL REVIEW

A deficit of £17,129 (2019 - surplus of £33,299) was generated during the year with general funds decreasing to £182,023 (2019 - increasing to £199,152). The trustees consider that these are sufficient reserves to carry out its objectives.

FUTURE PLANS

Under the recent Covid Pandemic the directors have tried to meet regularly Virtually 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 and childcare facility for all children that attend and to interact and liaise with parents as part of providing that service. The Nursery is looking to gain accreditation from The Curiosity Approach, this will be a long but very worthwhile journey that all the employees, volunteer trustees and parents will work together to achieve.

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 three trustee resignations in the year and the low numbers of family members, we continue to find 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, and to offer their services as trustees.

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. New trustees are educated by the Committee in their duties as a trustee 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 the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 24 May 2021 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 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.

Ian Jenkins BSc FCA

ICAEW

Swindells LLP

Chartered Accountants

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

28 May 2021

2020

2019

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

2

381,782

397,306

Other activities

3

2,089

2,444

Investment income

4

24

28

Total

383,895

399,778

EXPENDITURE ON

Charitable activities

5

Charity Management & Administration

315,501

293,889

Nursery Direct Costs

30,243

30,434

Overheads

55,280

42,156

Total

401,024

366,479

NET INCOME/(EXPENDITURE)

(17,129

)

33,299

RECONCILIATION OF FUNDS

Total funds brought forward

199,152

165,853

TOTAL FUNDS CARRIED FORWARD

182,023

199,152

2020

2019

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Tangible assets

11

11,859

16,687

CURRENT ASSETS

Debtors

12

33,821

32,471

Cash at bank and in hand

176,214

169,142

210,035

201,613

CREDITORS

Amounts falling due within one year

13

(39,871

)

(19,148

)

NET CURRENT ASSETS

170,164

182,465

TOTAL ASSETS LESS CURRENT LIABILITIES

182,023

199,152

NET ASSETS

182,023

199,152

FUNDS

14

Unrestricted funds

182,023

199,152

TOTAL FUNDS

182,023

199,152

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 24 May 2021 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 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.

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.

Going concern

The trustees have assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. This assessment has been required in the light of the significant uncertainty around the short to medium term impact of the spread of the Covid-19 virus.

At the time of approving the financial statements the trustees believe that all appropriate measures have been or will be taken to ensure that the charitable company will be able to continue its operations for at least the next 12 months and thus conclude that the going concern basis remains appropriate.

2.	CHARITABLE ACTIVITIES

2020

2019

£

£

Chargeable Places

103,417

157,433

Donations

50

-

Grants

11,186

6,050

EYEE Funded Hours

264,357

227,533

Hot dinners

2,368

5,603

Uniform sales

404

687

381,782

397,306

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:

2020

2019

£

£

East Sussex County Council

2,500

2,875

Apprenticeship Grants

-

2,500

Wealden District Council

-

675

Covid-19 Job Retention Scheme

8,686

-

11,186

6,050

3.	OTHER ACTIVITIES

2020

2019

£

£

Fundraising events

2,089

2,444

4.	INVESTMENT INCOME

2020

2019

£

£

Deposit account interest

24

28

5.	CHARITABLE ACTIVITIES COSTS

Direct

Costs (see

note 6)

£

Charity Management & Administration

315,501

Nursery Direct Costs

30,243

Overheads

55,280

401,024

6.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2020

2019

£

£

Trustees' remuneration etc

52,322

50,099

Staff costs

262,818

242,598

Rates and water

989

1,531

Insurance

1,810

1,347

Telephone and advertising

602

786

Postage and stationery

889

888

Accountancy

4,342

4,202

Alarm

1,115

192

Archive Storage

1,402

788

Computer Costs

858

815

Fundraising Costs

756

413

Legal and Professional

4,689

3,811

Reference Books and Periodical

28

105

Rent

23,400

10,263

Training

3,969

2,992

Staff Vetting

361

1,192

Staff Functions

1,462

1,052

Interest Paid

-

2

Bad Debts

1,582

2,263

Books and Activities

136

287

Cleaning and Maintenance

9,243

6,199

Hot Lunches

2,290

5,315

Play Resources

9,141

8,925

Scholastic Books Cost

2

31

Snacks

1,532

1,531

Supplies

5,910

6,524

Uniforms

1,232

1,209

PAYE interest

4

-

Depreciation

7,789

10,787

Loss on sale of assets

351

332

401,024

366,479

Included within accountancy are fees payable to the independent examiner for the independent examination amounting to £690 (2019 - £660), and for other accountancy services amounting to £3,233 (2019 - £2,949).

7.	NET INCOME/(EXPENDITURE)

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

2020

2019

£

£

Depreciation - owned assets

7,789

10,786

Deficit on disposal of fixed assets

351

332

8.	TRUSTEES' REMUNERATION AND BENEFITS

During the year, Mrs F J Bray in her capacity as nursery manager received remuneration amounting to £45,990 (2019 - £44,055). Pension contributions paid on behalf of the trustee amounted to £1,185 (2019 - £1,139).

Trustees' expenses

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

9.	STAFF COSTS

2020

2019

£

£

Wages and salaries

295,675

274,365

Social security costs

14,118

13,522

Other pension costs

5,347

4,810

315,140

292,697

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

2020

2019

Nursery staff

20

19

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

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

fund

£

INCOME AND ENDOWMENTS FROM

Charitable activities

397,306

Other activities

2,444

Investment income

28

Total

399,778

EXPENDITURE ON

Charitable activities

Charity Management & Administration

293,889

Nursery Direct Costs

30,434

Overheads

42,156

Total

366,479

NET INCOME

33,299

RECONCILIATION OF FUNDS

Total funds brought forward

165,853

TOTAL FUNDS CARRIED FORWARD

199,152

11.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 September 2019

35,079

10,776

3,191

49,046

Additions

324

300

2,688

3,312

Disposals

-

-

(1,405

)

(1,405

)

At 31 August 2020

35,403

11,076

4,474

50,953

DEPRECIATION

At 1 September 2019

19,995

10,417

1,947

32,359

Charge for year

6,426

244

1,119

7,789

Eliminated on disposal

-

-

(1,054

)

(1,054

)

At 31 August 2020

26,421

10,661

2,012

39,094

NET BOOK VALUE

At 31 August 2020

8,982

415

2,462

11,859

At 31 August 2019

15,084

359

1,244

16,687

12.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

31,660

29,602

Prepayments and accrued income

2,161

2,869

33,821

32,471

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Social security and other taxes

2,178

3,485

Other creditors

7,841

5,309

Accruals and deferred income

29,852

10,354

39,871

19,148

Included within accruals and deferred income is £2,500 (2019 - £5,000) 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 1.9.19

in funds

31.8.20

£

£

£

Unrestricted funds

General fund

199,152

(17,129

)

182,023

TOTAL FUNDS

199,152

(17,129

)

182,023

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

383,895

(401,024

)

(17,129

)

TOTAL FUNDS

383,895

(401,024

)

(17,129

)

Comparatives for 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

Comparative 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

15.	RELATED PARTY DISCLOSURES

Other key management personnel were paid remuneration of £36,187 (2019 - £33,914) throughout the year.