Manor Twiglets Nursery Limited - Charities report - 22.2

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 2023

for

Manor Twiglets Nursery Limited

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

to

7

Statement of Financial Activities

8

Balance Sheet

9

to

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

to

20

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 2023. 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.

STRATEGIC REPORT

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".

After School and Holiday clubs are continuing to thrive, we have seen a rise in the amount of childcare spaces that we provide for local school children. The opportunities and education that we, at Manor Twiglets, provide for the children and families that attend Manor Twiglets Nursery continues not to be affected by the cost of living increases. However, a discussion between the trustees resulted in a slight increase of nursery fees only, as of 1 February 2023.

Financial review

A surplus of £21,980 (2022 - deficit of £11,678) was generated during the year with general unrestricted funds increasing to £222,079 (2022 - decreasing to £200,099). The charity's reserves are maintained at a level to ensure the charity's objectives and activities are met. The trustees consider that there are sufficient reserves to carry out its objectives.

Principal risks and uncertainties

The board of trustees are responsible for overseeing the risks faced by the nursery throughout the year. When the risks are identified they are assessed, and controls are established.

The main risks identified by the board of trustees are as follows:

-Reputation

The reputation of the nursery is maintained by stringent safeguarding and recruitment policies, CPD for all

members of staff and close communication with our related parties.

-Financial

The trustees continue to meet regularly to review the nursery's financial performance and the effects of the Government's intended 2 year old funding initiative. Fee structures along with admissions and finance policies continue to be reviewed regularly.

-Staff Retention

Staff retention is managed by combining attractive, competitive salaries, additional allowances and

by supporting career progressions and higher level learning.

Future plans

The trustees continue to meet regularly to 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 still following The Curiosity Approach, with the potential goal to complete the accreditation. This will be a long but very worthwhile journey that all the employees, volunteer trustees and parents will work together to achieve.

Changes to the Early Years Curriculum were made in September 2022, these changes have been implemented within the setting.

The nursery with the help of employees, volunteer trustees and parents will be working to update and improve our garden and wooded area to create a stimulating outdoor learning environment to develop our forest school sessions.

The trustees will be reviewing a potential fee increase for after school club and holiday club sessions, which have not seen an increase since 2013.

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 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.

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.

Decision making

The board of trustees including senior management make decisions on behalf of the charity.

Induction and training of new trustees

New trustees are educated by the board of trustees in their duties as a trustee and in the way the pre-school operates and its governance.

Key management remuneration

The board of trustees sets the pay and remuneration of the charity's key management personnel. This is reviewed annually.

Related parties

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.

Management receives regular support from East Sussex Early Years Improvement team including training courses, audits and legislation guidance.

Uckfield and Villages Hub is a group run by foundation stage teachers who provide support and moderation to early years settings in the Uckfield area via termly meetings which staff members from the nursery attend.

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

Miss J R Humphrey Finance and HR manager

Dr J E Thomas Clinical Psychologist

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.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 23 May 2024 and signed on the board's 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 2023.

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 member of the Institute of Chartered Accountants in England and Wales, 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

Swindells LLP

Chartered Accountants

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

23 May 2024

2023

2022

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

2

530,813

456,674

Other activities

3

1,525

1,364

Investment income

4

42

4

Total

532,380

458,042

EXPENDITURE ON

Charitable activities

5

Charity Management & Administration

428,063

377,914

Nursery Direct Costs

34,348

41,611

Overheads

47,989

50,195

Total

510,400

469,720

NET INCOME/(EXPENDITURE)

21,980

(11,678

)

RECONCILIATION OF FUNDS

Total funds brought forward

200,099

211,777

TOTAL FUNDS CARRIED FORWARD

222,079

200,099

2023

2022

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Tangible assets

11

7,504

3,572

CURRENT ASSETS

Stocks

12

719

959

Debtors

13

58,241

63,619

Cash at bank and in hand

174,042

159,315

233,002

223,893

CREDITORS

Amounts falling due within one year

14

(18,427

)

(27,366

)

NET CURRENT ASSETS

214,575

196,527

TOTAL ASSETS LESS CURRENT LIABILITIES

222,079

200,099

NET ASSETS

222,079

200,099

FUNDS

16

Unrestricted funds

222,079

200,099

TOTAL FUNDS

222,079

200,099

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2023 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 23 May 2024 and were signed on its behalf by:

F J Bray - Trustee

Cash flows from operating activities

Cash generated from operations

1

22,644

(21,975

)

Net cash provided by/(used in) operating activities

22,644

(21,975

)

Cash flows from investing activities

Purchase of tangible fixed assets

(7,959

)

(1,330

)

Interest received

42

4

Net cash used in investing activities

(7,917

)

(1,326

)

Change in cash and cash equivalents in the reporting period

14,727

(23,301

)

Cash and cash equivalents at the beginning of the reporting period

159,315

182,616

Cash and cash equivalents at the end of the reporting period

174,042

159,315

1.	RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

2023

2022

£

£

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

21,980

(11,678

)

Adjustments for:

Depreciation charges

4,027

4,644

Interest received

(42

)

(4

)

Decrease/(increase) in stocks

240

(959

)

Decrease/(increase) in debtors

5,378

(19,924

)

(Decrease)/increase in creditors

(8,939

)

5,946

Net cash provided by/(used in) operations

22,644

(21,975

)

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.22

Cash flow

At 31.8.23

£

£

£

Net cash

Cash at bank and in hand

159,315

14,727

174,042

159,315

14,727

174,042

Total

159,315

14,727

174,042

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 (£).

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

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.

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.	CHARITABLE ACTIVITIES

2023

2022

£

£

Chargeable Places

230,358

201,967

Grants

4,020

11,247

EYEE Funded Hours

284,809

238,504

Hot dinners

11,039

4,274

Uniform sales

587

682

530,813

456,674

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:

2023

2022

£

£

Inclusion Bursaries

3,200

3,747

Apprenticeship Grants

820

500

University of Sussex

-

7,000

4,020

11,247

3.	OTHER ACTIVITIES

2023

2022

£

£

Fundraising events

1,525

1,364

4.	INVESTMENT INCOME

2023

2022

£

£

Deposit account interest

42

4

5.	CHARITABLE ACTIVITIES COSTS

Direct

Costs (see

note 6)

£

Charity Management & Administration

428,063

Nursery Direct Costs

34,348

Overheads

47,989

510,400

6.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2023

2022

£

£

Trustees' remuneration etc

87,187

60,726

Staff costs

339,646

316,851

Rates and water

2,240

1,507

Insurance

2,140

1,983

Telephone and advertising

602

606

Postage and stationery

972

1,195

Accountancy

7,777

6,391

Alarm

840

2,217

Archive storage

3,430

1,858

Computer costs

1,271

584

Fundraising costs

213

436

Legal and professional

6,555

7,052

Rent

13,395

10,595

Training

1,073

6,296

Staff vetting

1,230

337

Staff functions

1,992

1,348

Subscriptions

237

-

Charitable donations

65

-

Carried forward

470,865

419,982

2023

2022

£

£

Brought forward

470,865

419,982

Bad debts

1,333

3,920

Books and activities

2,349

1,359

Cleaning and maintenance

9,173

9,339

Hot lunches

10,720

7,019

Play resources

3,088

11,387

Snacks

2,130

2,463

Supplies

5,529

7,821

Uniforms

1,186

1,786

Depreciation

4,027

4,644

510,400

469,720

Included within accountancy are fees payable to the independent examiner for the independent examination amounting to £1,020 (2022 - £834), and for other accountancy services amounting to £6,055 (2022 - £4,891). Also included are Liberty accounting software costs of £702 (2022 - £666).

7.	NET INCOME/(EXPENDITURE)

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

2023

2022

£

£

Depreciation - owned assets

4,027

4,642

8.	TRUSTEES' REMUNERATION AND BENEFITS

During the year, Mrs F J Bray in her capacity as nursery manager received remuneration amounting to £49,961 (2022 - £48,504). Pension contributions paid on behalf of the trustee amounted to £1,297 (2022 - £1,266).

During the year, Mrs J Humphrey in her capacity as finance and HR manager received remuneration amounting to £27,061 (2022 - £4,700). Pension contributions paid on behalf of the trustee amounted to £625 (2022 - £110).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022.

9.	STAFF COSTS

2023

2022

£

£

Wages and salaries

397,495

352,236

Social security costs

21,730

18,707

Other pension costs

7,608

6,634

426,833

377,577

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

2023

2022

Nursery staff

25

24

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

456,674

Other activities

1,364

Investment income

4

Total

458,042

EXPENDITURE ON

Charitable activities

Charity Management & Administration

377,914

Nursery Direct Costs

41,611

Overheads

50,195

Total

469,720

NET INCOME/(EXPENDITURE)

(11,678

)

RECONCILIATION OF FUNDS

Total funds brought forward

211,777

TOTAL FUNDS CARRIED FORWARD

200,099

11.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 September 2022

38,885

11,076

5,813

55,774

Additions

374

7,585

-

7,959

At 31 August 2023

39,259

18,661

5,813

63,733

DEPRECIATION

At 1 September 2022

36,959

11,001

4,242

52,202

Charge for year

1,047

1,972

1,008

4,027

At 31 August 2023

38,006

12,973

5,250

56,229

NET BOOK VALUE

At 31 August 2023

1,253

5,688

563

7,504

At 31 August 2022

1,926

75

1,571

3,572

12.

STOCKS

2023

2022

£

£

Stocks

719

959

13.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

58,998

64,932

Provision for bad debts

(3,645

)

(3,645

)

Prepayments and accrued income

2,888

2,332

58,241

63,619

14.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Social security and other taxes

6,316

6,122

Other creditors

7,344

10,541

Accruals and deferred income

4,767

10,703

18,427

27,366

15.	LEASING AGREEMENTS

On 22 October 2022 the company entered into an operating lease agreement for land and buildings. Total commitments at the balance sheet date amount to £137,500 (2022 - £150,000).

16.	MOVEMENT IN FUNDS

Net

movement

At

At 1.9.22

in funds

31.8.23

£

£

£

Unrestricted funds

General fund

200,099

21,980

222,079

TOTAL FUNDS

200,099

21,980

222,079

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

532,380

(510,400

)

21,980

TOTAL FUNDS

532,380

(510,400

)

21,980