The trustees present their annual report and financial statements for the year ended 31 July 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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).
Business & Ethos of the Nursery
Tarvin Pre-School & Day Nursery provides care and education in line with the Early Years Foundation Stage for children from the age of two to school age. It is a community Nursery which is a Limited Company and Registered Charity. It is a not for profit organisation.
The Nursery’s aims are to meet the needs of its stakeholders (parents and children) by offering flexible sessions between 7.30am and 5:30pm term time and holidays plus an Adventure Camp for school-age children.
Our Vision is "to inspire every child to appreciate their own uniqueness and develop their belief and confidence in themselves to achieve their goals. We do this by providing a safe environment where they feel they belong, develop a love for learning through exciting and stimulating activities and experiences. Children are nurtured by skilled and committed practitioners who have high expectations for all to develop the skills, knowledge and emotional wellbeing they will need for life".
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Main Activities and Achievements During the Last 12 Month Period
General
We commenced the school year with good numbers and lots of new and exciting activities. Throughout the year we held Grandparents Coffee morning and our Nativity, Hot Cross Bun afternoon and a Summer Concert and Graduation Ceremony for our Pre-School children. We joined in with events in the local community such as the Christmas Market and had an outing to the Pantomime, Knowsley Safari Park, walks around the community and church.
The Nursery continues to be independently run and still very reliant on fund raising to enable the purchase of resources to further enhance our provision.
Staff Qualifications/Changes
The team continues to be led by Lyn Jackson, the Manager who has a BA(Hons)First in Early Years and Professional Development and holds Early Years Professional Status which is only awarded to practitioners whose practice and knowledge of the early years is exemplary. She is supported by a team of qualified practitioners.
Continued Professional Development has a high priority and staff continue to undertake virtual and online training.
The setting has seen some changes in staffing over the last year.
Curriculum Activities
The Nursery fully embraces the Early Years Foundation Stage with emphasis on providing an environment which develops children’s independence, confidence and self-esteem.
Activities are fun, exciting, and stimulating based on children’s own interests as well as providing new knowledge and skill development through a variety of topic-based activities.
Outdoor activities feature highly, with children enjoying free flow play, forest school fun and mud kitchen.
French, Welsh, Spanish and Makaton
Our weekly French and Spanish sessions continue to be enjoyed, and the children are learning to communicate using Makaton signing.
Extra Curricular
Our Sports sessions continue each Monday morning..
Links with Primary School
Effective links continue to develop with the Primary School and effective Transition arrangements fully support children’s move into school smoothly. We acknowledge and thank School for their continued support. The older children were able to benefit from transition visits into school and regular visits to the Nursery by the reception teacher.
Outings/Excursions/Special Events
These included the following: -
Christmas Party
World Book Day – The children dressed up as a character from a favourite book.
Walks in the Community including Woodlands
Grandparents Coffee Morning
Nativity
Hot Cross Bun Afternoon
Leavers’ Graduation/summer concert
Parents Evenings
Open Day
Contributions Made By Volunteers
General
Income received from fees and grants only just
normally covers staff wages and general running expenses. All other items (equipment, buildings, repairs, children’s gifts etc) must be funded by raising money through fundraising.
Fundraising Team
We have been without a fund-raising team for several years and the majority of fund raising has been undertaken by the staff. Being a Registered Charity enables us to raise much needed funds to buy the extras, replace and renew resources, provide enhancements to our provision, subsidise outings, parties, gifts at Christmas etc. Our aim is to run three or four main fund-raising activities throughout the year and a few smaller activities such as regular cake sales.
Fundraising Events
A full breakdown of what we managed to raise this year is available with the accounts, but events included:
Christmas Raffle Nativity
Easter Raffle Summer Raffle
Pumpkin Trail
Easter Bingo
Children’s Photographs
Mother’s Day Gifts
Sponsored Bike Ride by Committee member
Sponsored Climb up Snowdon by a staff member, family and friends
Many thanks to everyone who helped in whatever way they could.
Attendance Figures
We started the year in September 2023 with 47 children on the register and ended the year with 56 children on the register. 29 children left at the end of the school year to attend primary schools. We also lost some children in the summer term as they did not get a place in Tarvin school and changed Nursery to the feeder Nursery for their second choice of school.
Breakfast and Tea Club
This continues to offer parents flexibility. Children enjoy a substantial tea such as baked potatoes, pasta dishes etc and at breakfast there is a choice of cereal, fresh juice and toasted items.
Adventure Camp
As we now offer Nursery all year round, there is no longer any Holiday Club for Nursery-age children. We do offer Adventure Camp to school age children, and we offered this at October, February, Easter, Whit and Summer.
Financial Review
A full report on finances is available in the form of our Annual Accounts (explained in full at our AGM).
Accounts are prepared using Sage software, in spreadsheet format, monthly, with the only accrual or prepayment consisting of late or early receipts at the beginning or end of each financial year. All purchase invoices are paid within 30 days of receipt, or immediately, at year end.
An amount for depreciation is shown in the accounts for the £44,000 which was our contribution towards the new building.
Following the setting of the new year’s budget which takes into account previous expenditure and inflation, the staff wages are reviewed based on the minimum wage and National Living wage which are mandatory together with a comparison of rates paid at similar settings and national wage expectations for comparative posts.
Retained Cash
The Nursery keeps a cash reserve to ensure that if there was a change to the grant funding for 3- to 4-year-olds and numbers decreased, we would have funds available to use while we reviewed our situation. We may indeed require this and more to maintain our sustainability in these uncertain times.
Reports, Accounts and Returns
The Company is entitled to the exemption from the audit requirement contained in Section 477 of the Companies Act 2006, for the year ended 31st July 2024. No member of the company has deposited a notice, pursuant to Section 476 requiring an audit of these accounts.
The trustees’ responsibilities for ensuring that the charity keeps accounting records which comply with Section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 accounts, so far as applicable to the company.
Note: An independent examination is a simpler form of scrutiny than an audit but it still provides trustees, funders, beneficiaries, stakeholders and the public with an assurance that the accounts of the charity have been reviewed by an independent person. An independent examination provides an external check on the accounts and can be carried out by any person with the relevant ability and experience, except where the gross income exceeds £1m.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Future Plans (2024/25)
We have applied once again for Co-op Community Fund and pleased to have been successful this time. Our future plans are always optimistic in continually developing our provision and the range of facilities we can offer. Our priorities have to be to ensure the children continue to have wonderful early years’ experience, to keep well-staffed to support our children and to keep fees as affordable as possible whilst being able to pay the staff and all our other expenses.
The charity is a company limited by guarantee, incorporated on the 3 February 2005 and is governed by a constitution.
The charity is also registered with the Charity Commission, registered number 1110568.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The trustees' aim to ensure that the board has a well rounded set of skills to govern all aspects of the operations of the charity. Trustees are elected by the members to the board.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Tarvin Pre-School Nursery Limited (the charity) for the year ended 31 July 2024.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACA, 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 that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements 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
the financial statements 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 financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Tarvin Pre-School Nursery Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Heath Drive, Chester, Cheshire, England, CH3 8LS.
The financial statements have been prepared in accordance with the charity's constitution, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
Expenditure on charitable activities includes the costs incurred in the management of its various projects and activities: and
Other expenditure represents those items not falling into the categories above.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
An analysis of these costs is included in note 9.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Tax
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Sale of goods
Purchases
Premises costs
Repairs and maintenance
Insurance
Other staff costs
Telephone
Office expenditure
Advertising
Sundries
Subscriptions
L C Jackson and K Perry are trustees of the charity and are remunerated through the payroll. They received no remuneration in relation to carrying out their roles as trustees.
The average monthly number of employees during the year was:
The remuneration of key management personnel, being the Nursery Manager, Assistant Nursery Manager and Assistant Administration Manager is as follows:
During the year no expenses were paid to any of the trustee's (2023 - £nil).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.