Company Number.. 02476480 Charity Number: 1008566 YORK CHILDCARE LIMITED A company limited by guarantee TRUSTEES. ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 March 2023 HPH Chartered Accountants 54 Bootham YORK Y030 7XZ
YORK CHILDCARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
| CONTENTS | page |
|---|---|
| Report of the Management Board | 1 to 10 |
| Auditor's Report | 11 to 14 |
| Consolidated Statement of Financial Activities | 15 |
| Consolidated and Charity Balance Sheets | 16 |
| Consolidated and Charity Cash Flow Statement | 17 |
| Notes to the Consolidated Financial Statements | 18 to 29 |
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023 The Directors, known as the Management Board (who are also the Trustees of the Charity and whose details are shown in the reference and administrative information section of this report) are pleased to present their Annual Report together with the Financial Statements of the Charity for the year ended 31 March 2023. The Financial Statements comply with the Charities Act 2011. the Companies Act 2006, the Memorandum and Articles of Association, and Accounling and Reporting by Charities.. Stslemenl of Recommended Prac- tice applicable lo charities preparing their accounls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 {effeclive 1 January 20151. The Charity is a Public Benefit Entity- OBJECTIVES AND ACTIVITIES Charitable status was awarded on 21 February 1992 because of ourcompany policy to use income generated from our activities for the promotion of financially assisted places in nurseries. Our activities include supporting Out of School Clubs induding those caring for children within deprived post- code areas of York. Our charitable objectives as an organisation are to provide quality and affordable childcare for children from 6 weeks lo 16 years and in particular to support lone parents and those on low income. Vve achieve this both with the provision of nursery care and the work of supporting Out of School Clubs. We offer Assisted Places to parents who are in receipt of rtain state benefits or who apply for a reduction in fees due lo personal circumstances to ensure that as wide a group as possible can be considered foi financial assistance. Our Out of School Support Service only works with out of school clubs that are 'not for profil,. The aim is lo ensure the clubs are sustainable in the longer temi and improve quality standards. A charge is made for the ServIS we provide. We believe that our activities further our charitsble purposes which we provide for the wider public benefit, broadly described as the advanMent of education and support for the relief of poverty. The criteria we use lo assess success in the reporting period are.. That children have benefitted from accessing a wide range of leaming opportunities supporting their well-being and general development. That children are making good developmental progress towards attaining the goals as defined in the Earfy Years Foundation Stage, including children who have additional needs. That requests for financial assistan to support families where there is an identffied need are mel with a positive response. That a forecasted surplus is achieved or exceeded through setting and monitoring occupancy lar- gets across the nurseries. That the satisfaction of parenuguardians is reflected in the nursery provision for their child{renl. That budgetary controls and ProsseS are implemented regarding chartlable expenditure to main- lain our budgetary expectations.
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023- CONTINUED ACHIEVEMENTS AND PERFORMANCE As Trustees and Directors of York Childcare Limited, we believe that we have complied with the duty in section 17151 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charrty Commission. The financial assistan we have provided over the last year is detailed on the following pages but can be summarized as follows.. 2023 2022 Assisted places including additional support for Funded 2-year-olds and other Children attending under Earfy Years places 9.457 6,990 Out of School Support servi fees and other costs waived 526 £9,457 £7,516 The start of 2023 marked the retirement of Karen Mawson. CEO of York Childcare Ltd. Karen dedicated over 20 years of Servi lo the organization and will be very much missed by staff, colleagues, children and their families. With the retirement of Karen, we redeveloped the job description of CEO, and have recruited a full- time Director of Operations. Victoria Smith joined us in May and comes from a strong background in early edLJcation and business, having co-owned a private day nursery and teaching at both college and university levels. We look forward lo working with Victoria moving forward. Nurseries We have continued to operate our nurseries in Clifton. Wesl Bank Park and Scarcroft Green, all of which offer high quality childcare. Our nurseries are inspecled by Ofsled in accordance with their schedule of inspections - the results of the lalesl Ofsted inspections are available on their website al www.ofsled. ov.uk Ofsted affim through their reports that York Childcare nurseries "promote conlinuily of care and learning between the nursery and home" in an environment where the children feel safe. A number of external factors have had a signtricant impact on our operations throughout 2022-23. Increases in fuel costs, inflation and rises in the National Minimum Wage have presented constant challenges to deal with, and it is well documented in the media that recruitment in the Early Years sector reached an all-time low during this period. We have really felt the impact of this, and due to staffing shortages offered redUd operating hours across all nursery settings at points in the year. Despite the above factors all nurseries are slill open, our fInanS stable, primarily due las they were last year} lo the tremendous support of parents. guardians and our committed staff.
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023- CONTINUED After months of planning, we are pleased to have completed major works that were required at Heathels Nursery early in the financial year, undertaking a full r&roofing of the premises followed by extensive redecoration and general updating of the setting. Thi5 has bn FInand by designated funds set aside over three years. Staff have been commended for how well they managed the disruption that this caused, with minimal impact on operating hours or families relating to this. The new roof and associated refresh of the building has provided a boost lo staff morale during a period ofdifficulty surrounding recruitment at the setting. We continue to believe that one reason our nurseries are of such high quality is the investment in our staff. We value them highly and ensure that they receive full support and training opportunities al our expense lo be certain that they keep up to dale with good childcare practice. We have access through accredited training providers to help support those staff who wish to improve their qualifications. This investment is also acknowledged in the most recent Ofsted inspection reports. In reviewing staff salaries this year, we have begun to review the benefits that we offer to staff., this will be a ple of ongoing work into the next fin8nci81 year. We understand that the relationship belween parents, carers and the nurseries is key lo ensure we provide a well-rounded and nurturing experien in all aspects of nursery life, encompassing the needs of the children, local community and beyond. To maintain this partnership. parents and carers have regular contact with their nursery, primarily through the Key Person allocated for their child but also keep up to date through allending informal events al the nurseries, such as 'Slay-and-Play' aftemoons, and regular newsletters lo keep everyone up to date with day-to-day nursery life and events. Our website was updated this year, and provides a fresh and revitalised source of information both for new and existing parents and stsff. We include news updates on Facebook for each setting which parents can access at any time and our open Facebook page is used for sharing news, marketing and recruitment. The nursery fees we charge are in line with market prices for qualty childcare provision in York. We do not expect our other parents to subsidise or underwrite the costs of offering Assisted Places. The funding of Assisted Places is made possible by the fact that senior support services are provided by our Management Board on an honorary basis al no Charge. During the past year our Trustees have provided line management, personnel, accountsncy, legal, financial and propety advi free of charge. We continue to be approached by parents with requests for Assisted Places for their children to have conlinuily of care whilst they resolve employment issues. often connected with short lime working or redundancy, delays in families receiving beneffts claimed and with issues sumunding family break-up or health. Requests over recent months have primarily been from the managers of our three nurseries for funding, lo enable children to atterbd nursery all year round when other funding streams only provide for them for the 38 weeks of the year which are 'term time.. We are reacting posttively to such requests. Our senior staff are also actively directing parents to this Sour of funding where they feel that the child would benefit from the nursery care we offer and to pay for nursery meals. 12 children attending nursery for their'free of charge. (FOC) sessions have been provided with a hol meal FOC, funded by our Assisted Places scheme. The average number of 2-Year-Old funded families we have helped each month was 11 12022.. 14}. The average number families benefitting from the Assisted PlaS scheme each month was 612022.. 6). Government funding has continued to provide either 2-year-old Funding {subject to certain criteri8.- https'.Ilww.gov.uklhelp-with-childcar&costslfrhlIdcare-2-Year-0IdSl or Early Years Funding for children aged 3 and 4 years and this is of benefit to many families. Early Years Funding currently provides 15 hours per week of nursery education, term time only for all children from the term after their 3rd birthday, and 30 hours for working parents. Our staff work with parents to ensure that this provision is as flexible as il can be. As the level offunding provided continues lo be sel below the cost of delivering the servi, additional charges are made for meals, activities and equipment to mitigate losses, as mirrored across the sector.
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023- CONTINUED All our nurseries have strong lirbks with local schools where the schools cannot provide pre-school nursery care on site and they work in partnership with the foundation classes at the school to ensure that the children have continuity of childcare. Heathef s Nursery acts as the provider of this service to Acomb School and Scarcroft Green Nursery acts as the provider of this service to Scarcroft School. Joseph's Nursery has a wider Catchment in the Clifton area of York. We provided this Servi lo total of 123 12022.. 1301 children receiving Early Years funding and to an average of 11 {2022'. 1412-year-olds a lerni receiving Early Years funding. Occupancy al Joseph's, Heatherfs and Scarcroft Green Nurseries has remained steady despite the temporary closures that were made due to staffing issues across each setting. All our nurseries work closely with social setvices and health visitors to provide the necessary support lo families with an identtfied social or welfare need. Nursery staff attend planning and support meetings in addition lo the ongoing support given though daily interaction with the parents of vulnerable children, some of whom are on the child protection register. The nurseries continue lo provide childcare for families al IDAS (the Independent Domestic Abuse Servi. fomierly known as York Women's Refuge) as and when the need arises. Joseph's Nursery has provided additional support for 2 children with SEND, with a sucSsful application for 15 hours per week of Inclusion Funding to provide one-to-one support for the children on a part-lime basis. Sc8rcroft Green Nursery additionally has provided on&tO-one support for 2 children with SEND, with a successful application for 4 hours perweek of Indusion Funding to provide one-to-one support forthe children on a part-time funded basis. Managers at all three nurseries have received funding known as Early Years Pupil Premium {EYPPI which is allocated by the Local Authority to improve the educational opportunities for disadvantaged 3 and 4-year- olds. Heathers Nursery received funding for 5 children. Scarcroft Green Nursery received funding for 6 children and Joseph's nursery reiVed funding for 2 children. Managers are restricted as to how they can spend this money and they musl be able to demonstrate how the service or item purchased benefits the recipient. Expenditure has included the purchase of specrfic resources and play equipment lo enhance the learning opportunities for the childfen and ensure an indusive experience is had by all. Out of School Support Ser•l¢e Since its birth in 2006 the Out of School Club Support servi has gone from strength to strength. Having previously worked within the childcare sector at City of York Council, our Support servIs Manager has built on her skills and extensive knowledge and currenlly supports five individual clubs and more than 20 trustees. These clubs remain individual charitable entities who have a contractual relationship with our Support Service and receive a range of high-qualily advi and assistan. including Iruslee support, quality improvement, training, safeguarding support and updales, payroll and bookkeeping from a dedicated small team based at York Childcare Ltd head office. We make a charge of 1 Ooh of monthly turnover which covers all the setvices we provide, including telephone access to our support seNice staff team five days a week. As the clubs are charities, we understand that, even with the financial expertise provided, times can sometimes be hard. Where clubs experience difficulties paying our fee. they can approach York Childcare Ltd for a short-tem) reduction in fees as set out in the agreement between the club and the Service. Where users of the clubs face hardship, the Assisted Places scheme is available in all the settings we support and with the agreement of club trustees is independently financed by each setting.
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023- CONTINUED In all there are approximately 1,500 families wistered with these settings to which before and after school childcare is provided. Due lo the demand for childcare in the school holidays, the settings provide childcare during most school holidays. Occupancy levels are high at all the settings signed up to the Support Service. and the availability of one-to-one support with each club manager ensures not only better outcomes in terms of ¢hildcare and Ofsted ratings but helps to build relationships within the community, local schools, the local aulhorily, and York as a whole. Due lo ils continuing Suc$$. we have moved the Service into a separate trading company, known as York Childcare Out of School Club Support servi Ltd. Future plans for the company are lo continue to provide the outstanding service to its current Clubs. whilst looking to expand further afield and offer a range of bespoke services lo more charitable organisalions to support the sector lo go from strength lo strength in York and the surrounding are8. Following its successful inception in 2018, we will be hosting another Out of School Club sectOT conference in 2023 providing National Keynote Speakers from across the sector, workshops and information pertaining to the sector. This is a free event for our servIs users and is designed to support an increase in quality, knowledge and understanding of varying topi(3 in the York Out of Sthool Club community. We hope lo make this an annual event. FINANCIAL REVIEW Reserves Policy The Trustees carried out their annual review of the level of reserves needed to be held in order to cover costs in the event of sudden and unforeseen closure. It is our policy that we should have enough cash reserves in the bank lo cover payroll, rent and utilities for a month, plus redundancy costs. It is also our policy to retain in designated reserves any SignifinI investments and expenditure we will be required to cover outside of normal activities in the next 12 months or beyond. depending on the level of foreseeable expenditure. Based on the 2023 figures, and with no capital or other significant expenditure on the horizon, this is approximately £100,000. This is held within unreslricled reserves and is on lop of funds held for day-lo-day working capital purposes as described below. Only in exptional circumstsnces can these reserves be spent and must be fomially agreed and raltfied by the board. Investrnent Powers, Policy and Perforniance The powers of investment are set out in the goveming document. The Trustees have the power lo instru Investment advisers lo assist with the investment strategy. No Investment advisers are currently appointed. Financial Highlights As reported above and in previous years, the level of govemmenl funding provided for 2- 3- and 4-year-olds is set below the cost of delivering the Servi and the childcare sector continues to operate in challenging conditions, with some of our competitors in York going out of business during the ye8r. The charity has also spent over £96k this year on roof repairs most of this money had been designated in the prior year with only £18k being spent from free reserves. Overall this has led to the deficit of £165,822 made in the year (Surplus 2022.. £112,8521- The additional budgetary controls put in pla last year continue lo be SucsS$ful and have been backed up by monthty cash flow forecasts.
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023- CONTINUED The Trustees agreed a fee increase with effect from April 2023, t8king into consideration the rate of inflation, increased utility costs, increases to the National Minimum Wage and a review of staff salaries. Budget forecasting of 12-15 Months will continue to enable us to respond immediately to ally VarianS whilst building up reserves. Detsils of our Unrestridod Reserves The Charity Commission definition of free reserves is "Unreslricled undesignated funds less the book value of Fixed Assets" At any lime, an organisation of Ihis size has reserves lied up in the fixed assets il needs lo operate. At 31 March 2023 we had £49,122 (2022.. £58.593) tied up in fixed assets. This leaves resetves of £131,981 12022.. £211,320) left as free reseNes to support working capital requirements. Our contracts with parents require them to settle their nursery fees at the start of each month so that we have sufficient funds lo pay staff at the end of the month. Many parents comply with the contract. but our cash flow is affected by the means of payment arranged by Government. Early Years Funding is available for 2-, > and 4-year-olds and provides fvnded nursery re for 38 weeks of the nomial school year. Our claims are made al the slart of each academic term lo the City of York Council. The Council makes payments of 85Yo of eslimaled funding entillement wilhin 4 weeks of the start of term. with selllement of the remaining balance by the next half lemi. We have a payroll supporting more than 50 slaff and we have Ihe confidence to ensure that we can make salary payments in full al the month end even rf there are cash flow problems. From these items alone, during the18St yearwe needed wotking capttal, orfree reserves, of 8t le85t £100,000. Fundraising Under the terms of ils Memorandum Idause 3 lili) A). York Childcare is open to reIving and raising funds for the benefit of the children attending the nurseries and their families. Truslees are committed to benefitting children and families direclly by providing financial support in response to need through the Assisted Places scheme. Trustees are grateful lo one local charity for an annual donation of £2,000 towards the scheme, which is supplemented by discretionary funds allocated by trustees. These funds have been identtfied as representing the benefft in kind provided by Ttustees for their (pro-bonol con- tributions to York Childcare. In the current circumstanees. Ttustees will 81so seek funds from additlOll81 sources for the scheme. Fundraising events are also held by the individual nurseries. though the frequency of these has been con- strained this year due to staff shortages. Typically prOed$ are raised lo benefit the individual nursery and another chosen charitable cause. Scarcroft Green nursery will be lebrating ils 20th anniversary in Septem- ber 2023., a fundraising event and paty is planned for this. Remuneration of Key Management Personnel The Trustees consider the Board of Trustees, the Director of Operations. the Specialist Services Manager and the three Nursery Managers as comprising the key management personnel of the charity, in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. All Trustees give of their lime freely and no Trustee remuneration was paid in the year and Truslee expenses amounting lo £13 were daimed for ID checking at the bank.
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023- CONTINUED The pay of the Charity's senior managers is reviewed annually and nomally increased in accordance with average earnings. There is no formal bench-marking policy, but the remuneration set is fair and in line with that paid for similar roles within the private. voluntary and independent nursery sector in York. PLANS FOR FUTURE PERIODS Nurseries We continue to believe that the key lo quality childre is in employing the best staff and in ensuring that their training and support continues during their employment with us. We ensure that our staff attend in-house training at least Iwice a year to help them apply the latest initiatives in early years care and education. In addttion, the group of staff with a higher level of qualifications fu11 additional responsibilities to improve the quality and variety of care and education at all three settings. We continue to offer an enhanment lo salaries for staff who are the appointed'graduate leaders, at each setting in conjunction wrth the additional associated responsibilities. Reviewing staff benefits will be a priority for the next financial year. as will a focus on priorilizing staff retention and recruilmenl., plans include the introduction of recruilmenl open days at sellings, and developing relation- ships with our local Jobntre to ensure that they are up lo dale with our current vacancies and can support suitable jobseekers lo consider York Childcare Ltd as a future employer. There is still a need for Assisted Places for families who fall outside the Govemment funding nets and for short tem assistance to enable employment opportunities to be taken. There are also short-term requests le.g., where family income has fallen due to unforeseen circumstances) and we are supportive of these re- quests for Assisled Pla$ so that the impact of the situation does not fall on the children of the family. We shall continue lo seek further funds to support the Assisted Places for families al IDAS Ifomierfy the Yorf( Women's Refuge). However, if we cannot find additional funding, we shall continue to support the pla$ using our own reserves. REFERENCE AND ADMINISTRATIVE INFORMATION York childea operates three day nurseries known by the users of those settings as Joseph's, Heather's and Scarcroft Green Nurseries. We also operate an Out of School Support Setvice to support and facilitate out of school care in the York area. The Company registration number is 02476480 and the Charty registration number is 1008566. The regis- tered Offi is the principal office sited at The Pavilion. Rawcliffe Lane, York. Y030 6NP. All members of the Management Board are Direclors and Trustees. and they are also members of the Com- pany. They are listed below with the last year of reappoinlmenl. C H Jenkins Company Secretary R Welch J M Plummer S Wealherall J M Jenkins D Slafylas J M Hickie 2014 Resigned 30 April 2023 2019 2021 2023 appointed 15 August 2023 2023 appointed 15 August 2023 2023 appointed 15 August 2023
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023- CONTINUED Al the date of this report the senior members of the organization were as follows= V Smith Director of Operations Head Office A Wheatland Nursery Manager Heatherfs Nursery D Whalling Nursery Manager Joseph's Nursery J Brandl Nursery Manager Scarcroft Green Nursery D Adair Specialist Services Manager Head Office The Company s agents and advisors were as follows-. Auditor HPH Chartered Accounlants. 54 Boolham. York Bankers HSBC Bank PLC. Partiamenl Street. York Payroll HPH Chartered Accountants. 54 Bootham. York STRUCTURE GOVERNANCE AND MANAGEMENT York Childcare Limited is a company limited by guarantee and has no share rapital. The Memorandum and Articles of Assoryation dated 2 March 1990 govern the company and ils offIrS. All members of the Man- agement Board are Directors and Trustees. and they are also members of the company. Al the AGM 2017 the Management Board adopted Model Articles for private companies limited by guarantee. In accordance with the Articles of Association, members of the Management Board (the Trustees of the Charity) retire by rotation every three years. New members of the Management Board are appointed by advertising vacancies and interested parties are invited to attend meetings with the existing Board who take into account the balance of skills needed to provide effective management. The Board follows the procedures recommended by the Charity Commission for the induction of new Trustees. The maximum number of members of the Company is 25 and liabilty of each member is limited to such amounts as may be required but not exceeding £1. There are 6 members al Ihe date of this report. The Management Board is the name given to the Trustees of the charity and the Board of Directors who manage York Childcare Limited. There are at presenl 6 serving members each with a specific skill that adds value to the organisalion. Al present. they meet monthly at a fom)al Board meeting to make such decisions as are required. The wide range of our Trustees. skill base is used on a regular basis so that matters concerning personnel, accounting, legal, property, early education and childcare issues, IT, banking, marketing and general man- agement are all dealt with. None of the Board receives nor asks for any reward for the services they provide as Trustees. On occasion, servi$ are obtained from organisations with whom the Board are connected. Those services are provided at open market under contract tender conditions. In some instances, where the ServIS are clearfy provided at a discounted value. then a decision whether or not lo accept is made by Trustees not connected with the organisation.
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023- CONTINUED The day-to-day management of the organisation is under the resFK)nsibilty of the Director of Operations lo whom the Nursery Managers report and who deals with 8118dministration of the org8nisation. The Director of Operations reports directly to the Board. The Specialist Services Manager deals with all WOTk Invo1ng Oul of School Clubs and provides specialist support lo nurseries when needed and reports lo the Director of Operations. The Yort Childcare Business Management Team (comprising the HR Manager. the Business Manager, the Finance Manager and the Specialist Services Manager) support the work of the Director of Operations in providing day to day operational support which the nursery managers require. The Board of Trustees provide line management to the Director of Operations. RISK MANAGEMENT The Trustees have examined the principal areas of the Charity's operalions and considered the major risks, which may arise in each of these areas. In the opinion of the Trustees Ihe Charity has established resources and review systems, which, under normal conditions, should allow the risks. identified by Ihem to be miligaled to an a¢pIable level in ils day-to-day operalions. The principal risks remain around staff recruitment and retenlion and Ihe effect on occupancy and income. With inflation rising and unemployment being particulady low it has become harder and harder to recruit staff into childcare as many leave the industry or look elsewhere for higher pay. RESPONS181LITIES OF THE MANAGEMENT BOARD Statoment of Trustees. Responsibilities for the Financial Ststements Law applicable lo charities in England and Wales requires us as the Trustees of York Childcare Ltd to prepare financial slalemenls for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial posilion al the end of the year. In preparing financial statements giving a true and fair view. our responsibility as TnJstees requires us to follow best pracbce and.. al select suttable accounting policies arbd apply them consistently bl make judgements and estimates that 8re reasonable and prudent cl slate whether applicable accounting standards have been followed, subject to any departures disdosed and explained in the financial statements, and dl prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in operation. As the Trustees, we are responsible for keeping auntIng records which disclose with reasonable accuracy the financial position of the charity al any time and which enable us as Trustees lo ensure that the financial statements comply with applicable law. As the Trustees, we are also responsible for safeguarding the assets of the charity and for their proper application. and hence for taking reasonable steps for the prevention and detection of fraud.
YORK CHILDCARE LIMITED REPORT OF THE MANAGEMENT BOARD FOR THE YEAR ENDED 31 MARCH 2023- CONTINUED RESPONS181LITIES OF THE MANAGEMENT BOARD Members of the Management Board Members of the Management Board. who are Directors for the PUTpose of company law and Trustees for the purpose of charity law. who served during the year and up lo the date of this report are set out in the reference and adminislralion section. In accordance with company law, as the mpanI$ Directors. we certify Ihal.. so far as we are aware there is no relevant audtt infomi8tion of which the Companrfs Auditor is una- ware, and as the Directors of the company we have taken all the steps that we ought to have taken in order lo make ourselves aware of any relevant audit information and to establish that the Charity's Auditor is aware of that information. The Trustees are responsible for the maintenance and integrity of the chaty and financial information in- cluded on the chariws website. Legislation in the United Kingdom governing the preparation and dissemina- tion of financial statements may differ from legislalion in olherjurisdictions. Auditor HPH, Chartered Accountants will be nominated at the Annual Gener81 Meeting for reappointment and have expressed their willingness to continue in that capacity- Approved by the Management Board on 6 December 2023 and signed on its behalf by: Trustee 10
YORK CHILDCARE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF YORK CHILDCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2023 Opinion We have audited the financial statements of York Childcare Limited {the 'charilable company I for the year ended 31 March 2023 which comprise consolidated Statement of Financial Activities, consolidated and Charity Balance Sheets, consolidated and Charity Statement of Cash Flows, and notes to the consolidated financial slalements. including significant accounting. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practi). In our opinion the financial statements- give a true and fairview ofthe state ofthe group's and the charitable company's affairs as at 31 March 2023 and of the group's incoming reSoUrS and application of reSoUrs, including its income and expenditure for the year then ended- have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Acl 2006 and the Charities Acl 2011. Basis for opinion We conducled our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for Ihe audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordan with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the trustees, use of the going concem basis of accounling in the preparalion of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going conrn for a period of at least Iwelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going conrn are described in the relevanl sections of this report. Other infonnation The trustees are responsible for the other infomiation contained within the annual report. The other information comprises the information induded in the annual report, other than the financial statements and our audilor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent othetwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. 11
YORK CHILDCARE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF YORK CHILDCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2023 Our responsibility is to read the other information and, in doing so, consider whether the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identity such malerial inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have perfomied, we conclude that there is a material misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit the information given in the trustees, report, which includes the directors, report prepared for the purposes of company law. for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the directors, report included within the trustees. report have been prepared in accordan with applicable legal requirements. Matters on vlhich we are required to report by exception In light of the knowledge and understanding of the group and the charitable company and their environment obtained in the course of the audit, we have not identified malerial misstatements in the directors, report included within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. the parent company has not kept adequate accounting records., or the parent company financial statements are not in agreement with the accounting records and relurns., or certain disclosures of trustees. remuneration specified by law are not made" or we have not reiVed all the information and explanations we require for our audtt,. or the Irustees were not entilled to prepare the financial statements in accordan with the small companies regime and take advantage of the small companies exemption in preparing the Trustees Annual Report. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on pages 9 to 10, the trustees (who are also the directors of the charitable company for the purposes of company law} are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charitable company's ability to continue as a going conrn. disclosing, as applicable. matters related to going concem and using 12
YORK CHILDCARE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF YORK CHILDCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2023 the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic altemative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 151 of the Charities Act 2011 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder Our objectives are lo obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducled in accordance with ISAS (UK) will always detect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud. are InStanS of non-compliance with laws and regulations. We design procedures in line with our responsibilities. oullined above. to detect material misstatements in respect of irregularities, including fraud. The extent to which our prcKedures are capable of detecting irregularities, including fraud is detailed below.. We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011. the Statement of Recommended Practice, employment laws, health and safety legislation and Food Safety and Hygiene Regulations. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. related party transactions and income recognition. Our audit ProdureS to respond to these risks included enquiries of trustees and management about their own identification and assessment of the risks of irregularities, sample testing on the posting of joumals. review of trust minutes and reviewing accounting estimates for biases. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordan with auditing standards. We are not responsible for preventing non-complian and cannot be expected to detect non-complian with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. A further description of our responsibilities for the audit of the financial stslements is located on the Financial Reporting Council's website at= www.frc.or .uklauditorsres onsibilities. This description fomis part of our auditor's report. 13
YORK CHILDCARE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF YORK CHILDCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2023 Use of our report This report is made solely to the charrtable company's members. as a body, in awordantx with Chapter 3 of part 16 ofthe Companies Acl 2006. and to the charitable company s truslees, as a body, in accordance with Part 4 oflhe Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to slate to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charilable company, the charitable company's members as a body and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed. HPH, Chartered Accountsnts Stalulory Auditor 54 Bootham YORK Y030 7XZ 6 December 2023 HPH Accountants LLP is eligible for appointment as auditor of the charity by vittue of its eligibility for appointment as auditor of a company Lbnder section 1212 of the Comparbbes Act 2006. 14
£ £
The notes on pages 18 to 29 form part of these financial statements
15
The notes on pages 18 to 29 form part of these financial statements. Approved by the Board on 6 December 2023 and signed on its behalf by:
Director and Trustee
16
The notes on pages 18 to 29 form part of these financial statements.
17
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 ACCOUNTING POLICIES The principal accounling policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows= al Legal entity York Childcare Limited is regulated by the Charity Commission (1008566), limited by guarantee and is registered in England and Wales. The address of the registered office and principle place of business is The Pavilion, Rawcliffe Lane, York, Y030 6NP. bl Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charilies". Slatement of Recommended Practice applicable to chartties preparing their accounts in accordance wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 {effective 1 January 2019} - (Charities SORP (FRS 10211, and the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Companies Acl 2006. York Childcare Limited meets the definition of a public benefit entity under FRS 102. Assets and liabililies are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notels). cl Preparation of the accounts on a going concern basis The financial statements have been prepared on a going concern basis. This assertion is supported by budgets and forecasts, together with the Onoing monitoring of the impact of the pandemic by the board detailed in the RetX)rt of the Management Board. The directors and trustees, having considered the foregoing and having made due enquiries, conlinue lo adopt the going concern basis in preparing the financial slatemenls which assumes that the charitable company will continue in operation for the foreseeable future. dl Income recognition Income is recognised when the charity has entttlement to the funds. any performance conditions attached to the itemls) of income have been met, tt is probable that the income wll be received and the amount can be measured reliably. el Donatsd services and facilities Donaled professional and other serS, and donated facilities, are recognised as income when the charity has control over the item, any conditions associated wilh the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably- In accordance with the Charities SORP (FRS 1021. On reipt, donated professional and other servi. and donated facilities. are recognised on the basis of the value of the gift to the charity which is the amount the charty would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market,. a corresponding amount is then recognised in expenditure in the period of receipt. There have been no donated professional or other services reiVed during the year. 18
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 ACCOUNTING POLICIES (continued) fj Expenditure and irrecoverable VAT Expenditure is recognised On there is a legal or constTUCttve obligalion to make a payment lo a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Costs of charitable activib.es indude those costs incurred by the charity in the delivery of its activities and ServIS for its beneficiaries. Costs relating to a particular activity are allocated directly as sel out in note 6. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Support cosls are those functions Ihat assist the WOTk of the charity but do not direclly undertake charitable activities. Support costs include back Offi costs, finan, personnel, payroll and governan cosls which support the charity's activities. These costs have been allocated to expenditure on charitable activities. gl Fund accounting Unreslricled funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds are funds set aside by truslees out of unrestricted general fijnds for specific future purposes or projecls. Restricted and Endowment funds are funds which are used in accordan with spectfic reslrictions imposed by donors. h) Tangible fixed assets and depreciation Tangible fixed assets are included in the financial statements at their historical cost (in the case of donaled assets, at their fair value at the date of acquisition)- Tangible fixed assets are capitalised when the cosl exceeds £1,000. Deprecialion of tsngible fixed assets is provided at the following annual rates in order to wrile off each asset over ils estimated useful life= Leasehold alterations Fixtures, fittings and equipment Nursery equipment Computer equipment over the term of the lease over 10 years over 5 years over 3 years i) Pension scheme The cost of providing pension benefits is charged to the SOFA on the basis of employer contributions accruing in the period. jl Operating leases Rentals payable under operating leases are charged on as straight line basis over the lease term. kl Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounls due. 19
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 ACCOUNTING POLICIES (continued) l) Cash at bank and in hand Cash al bank and cash in hand includes cash and short temi highly liquid investments wilh a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. m) Creditors and provisions Credilors and provisions are recognised where the charity has a present obligation resulting from a past evenl that will probably result in the transfer of fvnds to a third party and the amount due to settle the obligalion can be measured or estimated lIablY. Creditors and provisions are normally recognised al their settlement amount afler allowing for any trade discounts due. n) Financial instruments The trust only has financial assels and financial liabilities of a kind that qualify as basic financial instrumenls. Basic financial instruments are initially recognised al transaction value and subsequently measured at their settlement value with the exptIOn of bank loans which are subsequently measured at amortised cost using the effective interest method. ol Government Grants Grant income is recognised when the conditions for reipl have been met and there is reasonable assurance that the grant will be received. It is then recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate, exp1 where the grant is compensation for expenses or losses already incurred or for the purpose of giving immediate finanaal support to the entity with no future related costs in which case it is recognised as incorne in the period in whiL* tt becomes re1Vable.
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 Unrestricted Restricted Endowment Funds Funds Funds Total 2023 Total 2022 2. DONATIONS AND LEGACIES Donations and covenants £2,144 £2,144 £ 2,391 Donations reiVed during the year were from The Sylvia and Colin Sheperd Charitable Trust (£2,000} and various donations. In 2022 no donations and legacies related to Restricted Funds. Unreslricted Restricted Endowment Funds Funds Funds Total 2023 Total 2022 3. CHARITABLE ACTIVITIES Nursery fees Out of school support setvices Grants receivable Other income 1,269,078 1,269,078 1,266,421 233 4,500 3,852 233 4,500 3.852 78,846 13,720 49,343 £ 1,277.663 £ 1,277,663 £ 1,408,330 In 2022 no income from charitable activities related to Restricted Funds. Unrestricted Restricted Funds Funds Endowment Funds Totsl 2023 Total 2022 4. INVESTMENT INCOME Bank interest receivable £ 1,003 £ 1.003 £40 In 2022 £40 related to Endowment Funds. 5. NET INCOME FOR THE YEAR Net income for the year is stated after charging.. 2023 2022 Depreciation Rent on short leaseholds Auditovs remuneration 9.470 61.149 4,500 5,748 9,325 63,037 3,960 4,313 audit other ServIS 21
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 INCOME FROM COMMERCIAL TrADING OPERATIONS AND INVESTMENT IN TRADING The charity owns the whole of the issued share capital of York Childcare Out of School Club Support servi Ltd , which was incorporated on 30 March 2022 in the United Kingdom (company number 140138801 and pays tts taxable profft to the charity by cotporate gift aid. A summary of the trading results which have been consolidated on a line by line basis is shown below. Period to 31 March 2023 Period to 31 March 2022 Summary profit and loss account: Turnover Administration expenses Profit for Ihe financial period Corporate gifl aid dislribulion lo parent charity 89,718 173,8931 15,825 115,8251 Retained profft carried forward The assels and liabilities of the subsidiary were- Current assets Current liabilities 43.293 {43,2931 Aggregate share capilal and reserves Afler adjusling for intercompany transaclions upon consolidalion. the income from trading activities was £89.718 {2022- nla)) and expenditure was £89.718 {2022- nla).
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 CHARITABLE ACTIVITIES EXPENDITURE Unrestricted Restricted Endowment Funds Funds Funds Total 2023 Total 2022 Nurseries Granls paid as Assisted Places Olher cosls 9.457 1,336,126 Out of school support services Olher cosls 9,457 1,336,865 6,990 1,126,469 739 66,183 Out of school services Granls paid to clubs Office and govemance costs 526 116,135 116,135 97,741 £ 1.461,718 £739 £ 1,462,457 £ 1,297,909 In 2022 £1,398 of expenditure related to Restn"cted Funds. EMPLOYEE INFORMATION The aggregate payroll costs of the Charitable Company for the period are as follows.. Salaries Social security costs Pension costs 2023 2022 997,750 58,264 14,993 951,734 53,072 14,061 £ 1,071,007 £ 1,018,867 Average number of employees for the period Nursery slaff Office staff Out of school Se1 staff No. 60 No. 60 66 66 No employees were paid emoluments amounting to £60.000 or more {2022 - none} . Included in the above figures are 29 {2022 - 29) part-time employees, working less than 37.5 hours per week. It is not possible to calculate the number of full-time equivalent staff because of the variable hours worked during the year by the part-time employees. The chartty adminislers contributions to a stakeholder pension scheme and contributes 2 % of gross pay for employees who have joined the scheme. In addition the charity has in place a Workplace pension scheme with NEST.open to all staff, and employer contributions are currently made al the rate of 3 /0 of gross pay for eligible employees who have joined the scheme. The key management personnel of the charity. comprise the Management Board, the CEO, the Out of School Service Manager and the three Nursery Managers. The total employee benefits of the key management personnel of the charity were £194.372 (2022 - £176,692). 23
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 TANGIBLE FIXED ASSETS Consolldated and Charlty Leasehold allerations Nursery equipment OOSMS equipment Total Cost Al 1 April 2022 Additions 270,331 187,904 899 459,134 At 31 March 2023 270,331 187,904 899 459,134 recialion At 1 April 2022 Charge for year 215,481 8.463 184,162 1.007 899 400,542 9,470 At 31 March 2023 223,944 185,169 899 410,012 Net Book Value At 31 March 2023 £ 46,387 £ 2,735 £ 49,122 At 31 March 2022 £ 54,850 £ 3,742 £ 58,592 All fixed assets held are for charitable use £1.007 {2022 £1.7081 related to Restricted Funds. Note 14 Operating lease commitments sets out the temis of the leases. 10. INVESTMENTS The charity's investment is in its wholly owned trading subsidiary York Childcare Out of School Club Support servi Ltd, whose share capital was acquired for £1 on 30 March 2022. 11. DEBTORS Consolidated 2023 2022 Charity 2023 2022 Income debtors Other debtors Prepayments and accrued income Amounts due from subsidiary undertaking 57,252 367 13,862 20,181 164 13,305 36,329 35 11,675 20,181 164 13,305 15,825 £ 71,481 £ 33,650 £ 63,864 £ 33,650 In 2022 no debtors related to Restricted Funds. 24
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 12. CREDITORS - amounts falling due within one year Consolidated 2023 2022 Charity 2023 2022 Trade creditors Fees and bonds paid in advance Taxation and social security Accruals Other creditors 24.523 45.616 22.167 22.118 8.749 10,534 45,565 13,593 11,316 8.325 5,636 45,616 20,384 15,318 8,749 10.534 45.565 13.593 11.316 8,326 £ 123.173 £ 89.333 £ 95,703 £ 89.334 Fees and bonds paid in advance Brought forward balance Deferred in the year Released in the year 45.565 11.753 {11.702) 79,416 6,565 (40,416) 45,565 11,753 111,7021 79,416 6,565 140,416) Carried forward balance £ 45,616 £ 45,565 £ 45,616 £ 45,565 In 2022 no creditors related to Restrided Funds. 13. FUNDS Consolidated and charity Asat 0110412022 Asat 3110312023 Income Expenditure Transfers Unrestricted: Undesignated Designated - Roof Repairs 268.205 1.295.632 {1.365.4931 {17,2411 181.103 77,981 (96,225) 18,244 Restricted: Capital Access Grant SGN 1.708 376 (701) {38) 1.007 338 Green SpaS- SGN Endowment 23,596 1,003 11,0031 23,596 Totsl funds £ 371,866 £ 1,296,635 £{ 1,462,457) £ 206,044 25
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 13. FUNDS {continuedl Consolidated and charity Asat 0110412021 Asal 3110312022 Income Expenditure Transfers Unrestricted: Undesignated Designated - Roof Repairs 198.436 1.409.221 {1.293,9861 145,4661 268.205 35,000 {2,525) 45,506 77,981 Restricted: Capital AsS Grant SGN Green Spaces- SGN 1.982 (2741 {1.1241 1.708 376 1.500 Endowment 23,596 40 1401 23,596 Total funds £ 259.014 £ 1.410,761 £{ 1.297,9091 £ 371,866 Purposes of the funds and transfers between funds Unrestricted designated funds The Roof Repairs Fund is for repair of Heatherfs Nursery roof. This was repaired in the year ended 31 March 2023. Restricted funds The Capital Access Grants are grants ftjnded under the Earfy Years Foundation Scheme initiative. These grants are for equipment purchases approved by City of York Council. The expenditure reflects the amount written off on the same basis as the depreciation rate of the fixed asset or the aclual expendilure if the item is not capitalised. The Green Spas funds were received by Scarcroft Green Nursery to spend on the allotment area. The balances of the Restricted funds are held in either liquid assets or are held as fixed assets where that was the purpose of the fund. Endowment fund The terms of the endowment are that investment income be used towards Ihe cost of Assisled PlaS at the nurseries. The Trustees have the power to invest and are permitted lo make use of the investment funds as security for borrowings for development purposes. The endowmenl is currenlly invesled in a cash deposit account in order to provide security for borrowings in connection with Scarcroft Green Nursery. The Endowment income £1.003 12022 - £40) was transferred to the Unrestricted Fund in accordance with the ternis of the endowment to fund Assisted Nursery Places.
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 15. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Undesignated Designated Restricted Endowment Funds Funds Funds Funds Total Funds Consolidated Tangible fixed assets Current assels Current liabilities 47,414 256,161 1123,173) 1,007 338 48,421 280,095 1123,173) 23,596 At 31 March 2023 £ 180.402 £ 1,345 £ 23,596 £ 205,343 Charity only Tangible fixed assets Current assets Current liabilities 48.116 228.690 (95,703) 1,007 338 49.123 252,624 195,703) 23.596 At 31 March 2023 £ 181.103 £ 1,345 £ 23,596 £ 206,044 Tangible fixed assets Current assets Current liabilities 56,885 300.654 (89.334) 1,708 376 58,593 402,607 189,334) 77,981 23,596 Al 31 March 2022 £ 268,205 £ 77.981 £ 2,084 £ 23.596 £ 371.866 16. OPERATING LEASE COMMITMENTS The total future value of minimum lease payments is as 2023 2022 Within one year Within two to five years After more than five years 63.467 214,299 69.997 62,871 234.206 113,558 £ 347,763 £ 410,635 The amount of nOn-CanlIable operating lease payments recognised as an expense during the period was £61,149 (2022- £63.037). 27
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 16. TRANSACTIONS WITH DIRECTORS, TRUSTEES AND RELATED PARTIES No remuneration, benefits or expenses were reiVed by any directors or trustees during the year in respect of their services to the Charitable Company. There are no other related party transactions 12022- none). 18. CONSTITUTION York Childcare Limited is a company limited by guarantee. number 02476480. In the event of the Charilable Company being wound up. the liabilty of the members is limited to one pound. 19. TAXATION As a registered charity, Yorf( Childcare Limited is exempt from the tax on income f811ing within sections 466 to 493 of the Corporation Tax Act 2010 to the extent that this is applied to ils charitable objects. No tax charges have arisen in the Company. 20. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES Consolidated 2023 2022 Charity 2023 2022 Net income for the reporting period Deprecialion of tangible fixed assets Decreasel(increase) in debtors Increase l{decrease) in creditors (165,822) 9.470 {37,831) 33,840 112,852 9,540 (5,1791 144,6221 {165,8221 9,470 (30,2141 6,369 112,852 9,540 (5,179) 144,621) Net cash pmvided by operdting activities £ {160,343) £ 72,591 £{180,197} £ 72,592 21. ANALYSIS OF CASH AND CASH EQUIVALENTS Consolidated 2023 Charity 2022 2023 2022 Cash at bank and in hand 208,614 368,957 181,103 368,957 Total cash and cash equivalents £ 208.614 £ 368,957 £ 181,103 £ 368,957 28
YORK CHILDCARE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2023 22. ANALYSIS OF CHANGES IN NET DEBT At At 0110412022 Cash-flows 3110312023 Charity only Cash at bank and in hand 368.957 {180,1971 188,760 £ 368.957 £ {180,1971 £ 188,760 Consolidated Cash at bank and in hand 208,614 £ 208,614 23. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Funds Restricted Endowment Funds Funds 31 March 2022 Income and endovmients from: Donalions and legacies Charitable acts'vities Inveslments 2,391 1.406.830 2,391 1,408,330 40 1.500 40 Total income 1.409.221 1.500 40 1,410,761 Expenditure on: Charilable aclivities 1.296.511 1.398 1,297,909 Totsl expenditure 1,296,511 1,398 1,297,909 Net income 112,710 102 40 112,852 Transfers between funds 40 {40) Net movement in funds 112.750 102 112,852 Reconciliation of funds: Total funds brought fOard 233,436 1,982 23,596 259,014 Total funds carried forward £ 346,186 £ 2,084 £ 23,596 £ 371,866