REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 31 August 2023 |
for |
Enchanted Wood Day Nursery Ltd |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 31 August 2023 |
for |
Enchanted Wood Day Nursery Ltd |
Enchanted Wood Day Nursery Ltd |
Contents of the Financial Statements |
for the Year Ended 31 August 2023 |
Page |
Report of the Trustees | 1 | to | 2 |
Independent Examiner's Report | 3 | to | 4 |
Statement of Financial Activities | 5 |
Balance Sheet | 6 | to | 7 |
Cash Flow Statement | 8 |
Notes to the Cash Flow Statement | 9 |
Notes to the Financial Statements | 10 | to | 15 |
Enchanted Wood Day Nursery Ltd (Registered number: 07312557) |
Report of the Trustees |
for the Year Ended 31 August 2023 |
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 Enchanted Wood Day Nursery Limited aims to provide a safe, healthy and nurturing environment for children aged 0-4 years in the local community by the operation of an innovative daycare nursery with a specialism of natural environments and equipment. |
Significant activities |
The Enchanted Wood Day Nursery offers early years educational opportunities for local children from 7,30am to 6pm all year round 51 weeks a year. |
The nursery also provides training opportunities for aspiring child care professionals to undertake apprentice qualifications during employment at the nursery. |
Public benefit |
The Trustees have paid due consideration to the guidance from the Charity Commission and confirm they are satisfied the charity provides satisfactory benefit to the public. |
FINANCIAL REVIEW |
Reserves policy |
The charity aims to hold cash reserves equal to three months of operating expenditure. The charity is working towards this policy. |
Going concern |
The Trustees have considered going concern of the charity and despite a challenging period for cashflow after the year end, the charity has managed to navigate the following 12 months successfully. |
Good cashflow management and a spending review has meant the Trustees consider the charity continues to be a going concern. |
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. |
Recruitment and appointment of new trustees |
New trustees are sought from recommended professionals with relevant skills in finance and childcare whilst ensuring no personal links to existing staff or beneficiaries. |
Organisational structure |
The trustees delegate the day to day running of the nursery to qualified childcare professionals. |
Nursery Manager - Miss E Parsons |
Deputy Manager - Ms J Jones |
Deputy Manager - Ms K Bachelor |
Outsourced professionals are used in specialist areas of Bookkeeping and Human Resources. |
Induction and training of new trustees |
New trustees obtain induction and training from prepared manuals with provide guidance and education in respect of trustees responsibilities. A copy of the financial control system manual is also provided as part of the induction. |
Enchanted Wood Day Nursery Ltd (Registered number: 07312557) |
Report of the Trustees |
for the Year Ended 31 August 2023 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Related parties |
A register of related parties is maintained by the trustees and adequate safeguards taken during meetings and decision making situations to avoid conflict of interest. |
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. |
As a part of wider risk management all financial and operational controls have been fully reviewed after the year end to consider improvements needed. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
Independent Examiner |
Butlers Chartered Accountants |
1434 London Road |
Leigh on Sea |
Essex |
SS9 2UL |
Approved by order of the board of trustees on |
Independent Examiner's Report to the Trustees of |
Enchanted Wood Day Nursery Ltd |
Independent examiner's report to the trustees of Enchanted Wood Day Nursery Ltd ('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 Report to the Trustees of |
Enchanted Wood Day Nursery Ltd |
Independent examiner's statement - matters of concern identified |
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 have identified the following matters of concern in my report: |
During the year under investigation the Trustees have bought to my attention a suspected fraud estimated to be in the region of £118,183 in the current and £74,699 in the preceding year. The matter has been reported to police and an investigation is ongoing. |
Sufficient controls were not in place during the year to ensure accounting records were complete and therefore, complete records were not available to check all transactions. |
The matter has been reported to Charity Commissioners in advance of this report by the Trustees of Enchanted Wood Day Nursery Limited. The Trustees have taken decisive action to appoint a new Chairman to oversee the charity and are undertaking work with new advisors to develop new financial controls to protect from risk in future. |
I confirm that no other matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect: |
1. | except for the matter of concern noted above 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; and |
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 confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached. |
Hayley Meagher FCA |
The Institute of Chartered Accountants in England and Wales |
Butlers Chartered Accountants |
1434 London Road |
Leigh on Sea |
Essex |
SS9 2UL |
31 July 2024 |
Enchanted Wood Day Nursery Ltd |
Statement of Financial Activities |
for the Year Ended 31 August 2023 |
31.8.23 | 31.8.22 |
Unrestricted | Total |
fund | funds |
Notes | £ | £ |
INCOME AND ENDOWMENTS FROM |
Charitable activities | 3 |
Other trading activities | 2 |
Total |
EXPENDITURE ON |
Charitable activities | 4 |
Other |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | ( |
) | 23,711 |
Enchanted Wood Day Nursery Ltd (Registered number: 07312557) |
Balance Sheet |
31 August 2023 |
31.8.23 | 31.8.22 |
Unrestricted | Total |
fund | funds |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
NET ASSETS | ( |
) |
FUNDS | 15 |
Unrestricted funds | ( |
) | 23,711 |
TOTAL FUNDS | ( |
) | 23,711 |
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. |
Enchanted Wood Day Nursery Ltd (Registered number: 07312557) |
Balance Sheet - continued |
31 August 2023 |
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 |
Enchanted Wood Day Nursery Ltd |
Cash Flow Statement |
for the Year Ended 31 August 2023 |
31.8.23 | 31.8.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (10,917 | ) | (34,087 | ) |
Interest paid | (48 | ) | - |
Net cash used in operating activities | (10,965 | ) | (34,087 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (8,816 | ) | - |
Net cash (used in)/provided by investing activities | (8,816 | ) | - |
Change in cash and cash equivalents in the reporting period |
(19,781 |
) |
(34,087 |
) |
Cash and cash equivalents at the beginning of the reporting period |
20,831 |
54,918 |
Cash and cash equivalents at the end of the reporting period |
1,050 |
20,831 |
Enchanted Wood Day Nursery Ltd |
Notes to the Cash Flow Statement |
for the Year Ended 31 August 2023 |
1. | RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES |
31.8.23 | 31.8.22 |
£ | £ |
Net expenditure for the reporting period (as per the Statement of Financial Activities) |
(50,761 |
) |
(44,109 |
) |
Adjustments for: |
Depreciation charges | 1,995 | 615 |
Interest paid | 48 | - |
Rounding | (1 | ) | - |
(Increase)/decrease in debtors | (11,661 | ) | 2,473 |
Increase in creditors | 49,463 | 6,934 |
Net cash used in operations | (10,917 | ) | (34,087 | ) |
2. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.9.22 | Cash flow | At 31.8.23 |
£ | £ | £ |
Net cash |
Cash at bank | 20,831 | (19,781 | ) | 1,050 |
20,831 | (19,781 | ) | 1,050 |
Total | 20,831 | (19,781 | ) | 1,050 |
Enchanted Wood Day Nursery Ltd |
Notes to the Financial Statements |
for the Year Ended 31 August 2023 |
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 financial statements have been prepared on a going concern basis. This assumes that the charity will continue in existence for the foreseeable future. |
The validity of this assumption depends on the continued financial support of the suppliers of the charity by way of extended credit terms over the 12 months after the balance sheet date. |
If the company were unable to continue in operational existence, adjustments would have to be made to reduce the balance sheet values of assets to their recoverable amounts, and to provide for any further liabilities that might arise and to reclassify fixed assets as current assets. Long term liabilities would also have to be reclassified as current liabilities. |
The Trustees believe that it is appropriate for the financial statements to be prepared on the going concern basis |
Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. |
Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Improvements to property | - |
Fixtures and fittings | - |
Computer equipment | - |
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. |
Enchanted Wood Day Nursery Ltd |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
1. | ACCOUNTING POLICIES - continued |
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. | OTHER TRADING ACTIVITIES |
31.8.23 | 31.8.22 |
£ | £ |
Fundraising events |
3. | INCOME FROM CHARITABLE ACTIVITIES |
31.8.23 | 31.8.22 |
Activity | £ | £ |
Nursery fees | Nursery and preschool | 451,192 | 408,629 |
Nursery fees - Government | Nursery and preschool | 131,652 | 141,679 |
Registration fees | Nursery and preschool | 2,250 | 1,450 |
4. | CHARITABLE ACTIVITIES COSTS |
Support |
Direct | costs (see |
Costs | note 5) | Totals |
£ | £ | £ |
Nursery and preschool | 512,858 | 4,953 | 517,811 |
5. | SUPPORT COSTS |
Governance |
Finance | costs | Totals |
£ | £ | £ |
Nursery and preschool | 1,416 | 3,537 | 4,953 |
6. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
31.8.23 | 31.8.22 |
£ | £ |
Auditors' remuneration for non audit work | 537 | 3,742 |
Other assurance services | 3,000 | - |
Depreciation - owned assets |
Other operating leases | 31,306 | 32,445 |
Enchanted Wood Day Nursery Ltd |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
7. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022. |
During the year Trustee, Ms E Parsons, received remuneration of £37,186 ( 2022: unknown) in the year. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022. |
8. | STAFF COSTS |
31.8.23 | 31.8.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
348,992 | 334,992 |
The average monthly number of employees during the year was as follows: |
31.8.23 | 31.8.22 |
Nursery professionals |
9. | EXCEPTIONAL ITEMS |
Exceptional items include expenses from the charity of which are unexplained at the date of these accounts being signed. Police investigation into these expenses is ongoing. |
10. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted |
fund |
£ |
INCOME AND ENDOWMENTS FROM |
Charitable activities |
EXPENDITURE ON |
Charitable activities |
Other |
Total |
NET INCOME/(EXPENDITURE) | ( |
) |
Enchanted Wood Day Nursery Ltd |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
10. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
Unrestricted |
fund |
£ |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 23,711 |
11. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 September 2022 |
Additions |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
Enchanted Wood Day Nursery Ltd |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.23 | 31.8.22 |
£ | £ |
Trade creditors |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.8.23 | 31.8.22 |
£ | £ |
Between one and five years |
The lease above is in relation to the property under lease to the charity until 1st September 2026. |
15. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.9.22 | in funds | 31.8.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 23,711 | (50,761 | ) | (27,050 | ) |
TOTAL FUNDS | (50,761 | ) | (27,050 | ) |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 585,233 | (635,994 | ) | (50,761 | ) |
TOTAL FUNDS | ( |
) | (50,761 | ) |
Comparatives for movement in funds |
Net |
movement | At |
At 1.9.21 | in funds | 31.8.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 67,820 | (44,109 | ) | 23,711 |
TOTAL FUNDS | 67,820 | (44,109 | ) | 23,711 |
Enchanted Wood Day Nursery Ltd |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
15. | MOVEMENT IN FUNDS - continued |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 551,758 | (595,867 | ) | (44,109 | ) |
TOTAL FUNDS | 551,758 | (595,867 | ) | (44,109 | ) |
A current year 12 months and prior year 12 months combined position is as follows: |
Net |
movement | At |
At 1.9.21 | in funds | 31.8.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 67,820 | (94,870 | ) | (27,050 | ) |
TOTAL FUNDS | 67,820 | (94,870 | ) | (27,050 | ) |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 1,136,991 | (1,231,861 | ) | (94,870 | ) |
TOTAL FUNDS | 1,136,991 | (1,231,861 | ) | (94,870 | ) |
16. | RELATED PARTY DISCLOSURES |
The charity's premises are located on the grounds of The Deanes School which is part of the South East Essex Academy Trust. |
Mr D. McKeown, Trustee (at time of signing these accounts) of The Enchanted Wood Day Nursery Ltd is the Headmaster of The Deanes School. |
Rent paid to The Deanes School during the year totalled £31,306 ( £32,445). |