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2024-03-31-accounts

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

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 2024

HPH Chartered Accountants 54 Bootham YORK YO30 7XZ

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

CONTENTS page
Report of the Management Board 1 to 13
Auditor's Report 14 to 17
Consolidated Statement of Financial Activities 18
Consolidated and Charity Balance Sheets 19
Consolidated and Charity Cash Flow Statement 20
Notes to the Consolidated Financial Statements 21 to 32
The following pages do not form part of the statutory financial statements
Summary Income and Expenditure Accounts 33 to 35

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024

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 2024.

The Financial Statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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).

The Charity is a Public Benefit Entity.

OBJECTIVES AND ACTIVITIES

Charitable status was awarded on 21 February 1992 because of our company 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 including those caring for children within deprived postcode areas of York.

Our charitable objectives as an organisation are to provide quality and affordable childcare for children from 6 weeks to 16 years and in particular to support lone parents and those on low income. We 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 certain state benefits or who apply for a reduction in fees due to personal circumstances to ensure that as wide a group as possible can be considered for financial assistance.

Our Out of School Support Service only works with out of school clubs that are ‘not for profit’. The aim is to ensure the clubs are sustainable in the longer term and improve quality standards. A charge is made for the services we provide.

We believe that our activities further our charitable purposes which we provide for the wider public benefit, broadly described as the advancement of education and support for the relief of poverty.

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

The criteria we use to assess success in the reporting period are:

That children have benefitted from accessing a wide range of learning opportunities supporting their wellbeing and general development.

That children are making good developmental progress towards attaining the goals as defined in the Early Years Foundation Stage, including children who have additional needs.

That requests for financial assistance to support families where there is an identified need are met with a positive response.

That a forecasted surplus is achieved or exceeded through setting and monitoring occupancy targets across the nurseries.

That the satisfaction of parent/guardians is reflected in the nursery provision for their child(ren).

That budgetary controls and processes are implemented regarding charitable expenditure to maintain our budgetary expectations.

ACHIEVEMENTS AND PERFORMANCE

As Trustees and Directors of York Childcare Limited, we believe that we have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

The financial assistance we have provided over the last year is detailed on the following pages but can be summarized as follows:

2024 2023
£ £
Assisted places including additional support for Funded 12,844 9,457
2-year-olds and other Children attending under Early 1284444440 945777777
Years places

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

The end of 2023-24 saw our new Director of Operations completing her first year in the role. The board are pleased with the work that has been undertaken in the last financial year and are excited to see what the next year will bring. There are plans underway for further development of the settings and the introduction of our nursery management system, Blossom has allowed us to have a much clearer overview of the performance of the settings and where we need to target the support. The Director of Operations has introduced weekly virtual huddles with representatives from the nursery settings which have allowed the settings themselves to have a greater understanding of their performance and allows the team to celebrate in their success. This has been a welcome addition to the operational running of the settings and ensures that the nurseries have accountability and support in a timely manner.

Nurseries

We have continued to operate our nurseries in Clifton, West Bank Park and Scarcroft Green, all of which offer high quality childcare. Our nurseries are inspected by Ofsted in accordance with their schedule of inspections - the results of the latest Ofsted inspections are available on their website at www.ofsted.gov.uk Ofsted affirm through their reports that York Childcare nurseries “promote continuity 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 significant impact on our operations throughout 2023-24. Continued 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 continues to be challenge. We have worked hard on recruitment and have been pleased to be able to keep all nurseries running at their full operational hours during this period.

Despite the above factors all nurseries are still open, our finances stable, primarily due (as they were last year and many years previously) to the tremendous support of parents, guardians and our committed staff.

We continue to work hard on maintaining our settings and have spent £15,979 over the last year on maintenance and resources such as new flooring the pre-school room at our Scarcroft Green Nursery.

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 at our expense to be certain that they keep up to date with good childcare practice. We have access through accredited training providers to help support those staff who wish to improve their qualifications. This year has seen us change our training provider to one that has a focus on early years providers and allows closer mentorship for the students and the managers. In reviewing staff salaries this year, we have begun to review the benefits that we offer to staff; this will be a piece of ongoing work into the next financial year and we aim to involve the staff in this process as much as possible.

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

We understand that the relationship between parents, carers and the nurseries is key to ensure we provide a well-rounded and nurturing experience 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 attending informal events at the nurseries, such as ‘Stay-and-Play’ afternoons, and regular newsletters to keep everyone up to date with day-to-day nursery life and events. This has been further supported with the introduction of our nursery management system, Blossom, as it allows parents to share key moments directly with the team and their child’s key person.

The nursery fees we charge are in line with market prices for quality 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 management services are provided by our Management Board on an honorary basis at no charge. During the past year our Trustees have provided line management, personnel, accountancy, legal, financial and property advice free of charge.

We continue to be approached by parents with requests for Assisted Places for their children to have continuity of care whilst they resolve employment issues, often connected with short time working or redundancy, delays in families receiving benefits claimed and with issues surrounding family break-up or health. Requests over recent months have primarily been from the managers of our three nurseries for funding, to enable children to attend 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 positively to such requests. Our senior staff are also actively directing parents to this source of funding where they feel that the child would benefit from the nursery care we offer and to pay for nursery meals. This was provided for an average of 8 families across all our settings.

Government funding has continued to provide either 2-year-old Funding (subject to certain criteria: https://www.gov.uk/help-with-childcare-costs/free-childcare-2-year-olds) 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 3[rd] birthday, and 30 hours for working parents. Our staff work with parents to ensure that this provision is as flexible as it can be. As the level of funding provided continues to be set below the cost of delivering the service, additional charges are made for meals, activities and equipment to mitigate losses, as mirrored across the sector.

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

All our nurseries have strong links 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. Heather’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 service to total of 136 (2023: 123) children receiving Early Years funding and to an average of 24 (2023: 11) 2-year-olds a term receiving Early Years funding.

Occupancy at Joseph’s, Heather’s and Scarcroft Green Nurseries has remained steady throughout the year.

All our nurseries work closely with social services and health visitors to provide the necessary support to families with an identified social or welfare need. Nursery staff attend planning and support meetings in addition to 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 to provide childcare for families at IDAS (the Independent Domestic Abuse Service, formerly known as York Women’s Refuge) as and when the need arises.

Joseph’s Nursery has provided additional support for 1 child with SEND, with a successful application for 15 hours per week of Inclusion Funding to provide one-to-one support for the children on a part-time basis.

Scarcroft Green Nursery additionally has provided one-to-one support for 1 child with SEND, with a successful application for 5 hours per week of Inclusion Funding to provide one-to-one support for the children on a parttime funded basis.

Managers at all three nurseries have received funding known as Early Years Pupil Premium (EYPP) which is allocated by the Local Authority to improve the educational opportunities for disadvantaged 3 and 4-year-olds. This was broken down as follows

SGN
Summer (April – July) 2023 X7
Autumn (Sept – Dec) 2023 X4
Spring (Jan – April) 2024 X4
JN
Summer (April – July) 2023 X1
Autumn (Sept – Dec) 2023 X2
Spring (Jan – April) 2024 X1
HN
Summer (April – July) 2023 X4
Autumn (Sept – Dec) 2023 X3
Spring (Jan – April) 2024 X3

Managers are restricted as to how they can spend this money and they must be able to demonstrate how the service or item purchased benefits the recipient. Expenditure has included the purchase of specific resources and play equipment to enhance the learning opportunities for the children and ensure an inclusive experience is had by all.

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

Out of School Support Service

Since its birth in 2006 the Out of School Club Support Service has gone from strength to strength. Having previously worked within the childcare sector at City of York Council, our Support Services Manager has built on her skills and extensive knowledge and currently 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-quality advice and assistance, including trustee support, quality improvement, training, safeguarding support and updates, payroll and bookkeeping from a dedicated small team based at York Childcare Ltd head office. We make a charge of 10% of monthly turnover which covers all the services we provide, including telephone access to our support service 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-term 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.

In all there are approximately 1,500 families registered with these settings to which before and after school childcare is provided. Due to 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 childcare and Ofsted ratings but helps to build relationships within the community, local schools, the local authority, and York as a whole.

Due to its continuing success, we have moved the Service into a separate trading company, known as York Childcare Out of School Club Support Service Ltd. Future plans for the company are to continue to provide the outstanding service to its current Clubs, whilst looking to expand further afield and offer a range of bespoke services to more charitable organisations to support the sector to go from strength to strength in York and the surrounding area.

Following its successful inception in 2018, we will be hosting another Out of School Club sector conference in 2024 providing National Keynote Speakers from across the sector, workshops and information pertaining to the sector. This is a free event for our Services users and is designed to support an increase in quality, knowledge and understanding of varying topics in the York Out of School Club community.

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

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 to cover payroll, rent and utilities for a month, plus redundancy costs. It is also our policy to retain in designated reserves any significant 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 2024 figures, and with no capital or other significant expenditure on the horizon, this is approximately £100,000. This is held within unrestricted reserves and is on top of funds held for day-to-day working capital purposes as described below.

Only in exceptional circumstances can these reserves be spent and must be formally agreed and ratified by the board.

Investment Powers, Policy and Performance

The powers of investment are set out in the governing document. The Trustees have the power to instruct Investment advisers to assist with the investment strategy. No Investment advisers are currently appointed.

Financial Highlights

As reported above and in previous years, the level of government funding provided for 2-, 3- and 4-year-olds is set below the cost of delivering the service and the childcare sector continues to operate in challenging conditions, with some of our competitors in York going out of business during the year.

In response we continued to apply tight financial controls during the last year and we were pleased to end with a minimal deficit of £2,115 which is a near breakeven position (Deficit 2023 £165,822). The additional budgetary controls put in place last year continue to be successful and have been backed up by monthly cash flow forecasts.

The Trustees agreed a fee increase with effect from April 2024, taking 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 any variances whilst building up reserves.

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

Details of our Unrestricted Reserves

The Charity Commission definition of free reserves is “Unrestricted undesignated funds less the book value of Fixed Assets”. At any time, an organisation of this size has reserves tied up in the fixed assets it needs to operate. At 31 March 2024 we had £39,773 (2023: £49,122) tied up in fixed assets. This leaves reserves of £138,355 (2023: £131,981) left as free reserves 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 to 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-, 3- and 4-year-olds and provides funded nursery care for 38 weeks of the normal school year. Our claims are made at the start of each academic term to the City of York Council. The Council makes payments of 85% of estimated funding entitlement within 4 weeks of the start of term, with settlement of the remaining balance by the next half term.

We have a payroll supporting more than 50 staff and we have the confidence to ensure that we can make salary payments in full at the month end even if there are cash flow problems.

From these items alone, during the last year we needed working capital, or free reserves, of at least £100,000.

Fundraising

Under the terms of its Memorandum (clause 3 (iii) A), York Childcare is open to receiving and raising funds for the benefit of the children attending the nurseries and their families.

Trustees are committed to benefitting children and families directly by providing financial support in response to need through the Assisted Places scheme. Trustees are grateful to 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 identified as representing the benefit in kind provided by Trustees for their (pro-bono) contributions to York Childcare. In the current circumstances, Trustees will also seek funds from additional sources for the scheme.

Fundraising events are also held by the individual nurseries, though the frequency of these has been constrained this year due to staff shortages. Typically proceeds are raised to benefit the individual nursery and another chosen charitable cause. Scarcroft Green nursery celebrated its 20[th] anniversary this year and held a summer fair which raised £608, a very impressive amount!

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

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 time freely and no Trustee remuneration was paid in the year.

The pay of the Charity’s senior managers is reviewed annually and normally 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 to quality childcare 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 Have access to continuous professional development throughout the year and support those who wish to further their qualifications. .

Reviewing staff benefits will be a priority for the next financial year, as will a focus on prioritizing staff retention and recruitment; plans include the introduction of recruitment open days at settings, and developing relationships with our local Jobcentre to ensure that they are up to date with our current vacancies and can support suitable jobseekers to consider York Childcare Ltd as a future employee.

There is still a need for Assisted Places for families who fall outside the Government funding nets and for short term assistance to enable employment opportunities to be taken. There are also short-term requests (e.g., where family income has fallen due to unforeseen circumstances) and we are supportive of these requests for Assisted Places so that the impact of the situation does not fall on the children of the family.

We shall continue to seek further funds to support the Assisted Places for families at IDAS (formerly the York Women’s Refuge). However, if we cannot find additional funding, we shall continue to support the places using our own reserves.

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

REFERENCE AND ADMINISTRATIVE INFORMATION

York Childcare 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 Service to support and facilitate out of school care in the York area.

The Company registration number is 02476480 and the Charity registration number is 1008566. The registered office is the principal office sited at The Pavilion, Rawcliffe Lane, YORK, YO30 6NP.

All members of the Management Board are Directors and Trustees, and they are also members of the Company. They are listed below with the last year of reappointment.

S Weatherall 2021 J M Jenkins Appointed 15 August 2023 L J Street Appointed 24 September 2024 D Stafylas Appointed 15 August 2023; Resigned 1 January 2024; Reappointed 1 July 2024 J M Hickie Appointed 15 August 2023; Resigned 17 September 2024 R Welch Resigned 30 April 2023 C H Jenkins Resigned 29 February 2024 J M Plummer Resigned 31 March 2024

At 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 Heather’s Nursery D Whatling Nursery Manager Joseph’s Nursery J Brandt Nursery Manager Scarcroft Green Nursery D Adair Specialist Services Manager Head Office

The Company’s agents and advisors were as follows:

Auditor HPH Chartered Accountants, 54 Bootham, YORK Bankers HSBC Bank PLC, Parliament Street, YORK Payroll HPH Chartered Accountants, 54 Bootham, YORK

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

STRUCTURE GOVERNANCE AND MANAGEMENT

York Childcare Limited is a company limited by guarantee and has no share capital. The Memorandum and Articles of Association dated 2 March 1990 govern the company and its officers. All members of the Management Board are Directors and Trustees, and they are also members of the company.

At 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 liability of each member is limited to such amounts as may be required but not exceeding £1. There are 3 members at the 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 present 3 serving members each with a specific skill that adds value to the organisation. At present, they meet monthly at a formal 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 management are all dealt with. None of the Board receives nor asks for any reward for the services they provide as Trustees. On occasion, services 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 services are clearly provided at a discounted value, then a decision whether or not to accept is made by Trustees not connected with the organisation.

The day-to-day management of the organisation is under the responsibility of the Director of Operations to whom the Nursery Managers report as well as the business management team and who deals with all administration of the organisation. The Director of Operations reports directly to the Board.

The Specialist Services Manager deals with all work involving Out of School Clubs and provides specialist support to nurseries when needed and reports to the Director of Operations.

The York 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.

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

RISK MANAGEMENT

The Trustees have examined the principal areas of the Charity's operations and considered the major risks, which may arise in each of these areas. In the opinion of the Trustees the Charity has established resources and review systems, which, under normal conditions, should allow the risks, identified by them to be mitigated to an acceptable level in its day-to-day operations.

The principal risks remain around staff recruitment and retention and the effect on occupancy and income. With inflation rising and unemployment being particularly low it has become harder and harder to recruit staff into childcare as many leave the industry or look elsewhere for higher pay.

RESPONSIBILITIES OF THE MANAGEMENT BOARD

Statement of Trustees' Responsibilities for the Financial Statements

Law applicable to charities in England and Wales requires us as the Trustees of York Childcare Ltd to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, our responsibility as Trustees requires us to follow best practice and:

As the Trustees, we are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity at any time and which enable us as Trustees to 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.

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YORK CHILDCARE LIMITED

REPORT OF THE MANAGEMENT BOARD

FOR THE YEAR ENDED 31 MARCH 2024 - CONTINUED

RESPONSIBILITIES OF THE MANAGEMENT BOARD

Members of the Management Board

Members of the Management Board, who are Directors for the purpose of company law and Trustees for the purpose of charity law, who served during the year and up to the date of this report are set out in the reference and administration section.

In accordance with company law, as the company's Directors, we certify that:

so far as we are aware there is no relevant audit information of which the Company's Auditor is unaware, and as the Directors of the company we have taken all the steps that we ought to have taken in order to 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 charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

HPH, Chartered Accountants will be nominated at the Annual General Meeting for reappointment and have expressed their willingness to continue in that capacity.

Approved by the Management Board on 19 December 2024 and signed on its behalf by:

...............................................................................................................

Dimitrios Stafylas, Jennifer Jenkins and Sarah Weatherall

Trustees

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YORK CHILDCARE LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF YORK CHILDCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2024

Opinion

We have audited the financial statements of York Childcare Limited (the “charitable company”) for the year ended 31 March 2024 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 statements, 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 Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the 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 accordance with these requirements. We believe that the audit evidence 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 concern basis of accounting in the preparation 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 concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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YORK CHILDCARE LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF YORK CHILDCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2024

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material 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 performed, 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

Matters on which 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 material 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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 12 to 13, 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.

15

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YORK CHILDCARE LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF YORK CHILDCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2024

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative 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 to obtain reasonable assurance 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 conducted in accordance with ISAs (UK) will always detect a material misstatement when it 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 instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

16

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YORK CHILDCARE LIMITED

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF YORK CHILDCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2024

In response to the risk of irregularities and non-compliance with laws and regulations and risk of fraud, we designed procedures which included but were not limited to: sample testing on the posting of journals, timing of recognition of income, review of trustee’s minutes and any correspondence with regulators.

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 accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance 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. We are not responsible for preventing fraud and cannot be expected to detect all fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Part 4 of the 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 state 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 charitable 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.

......................................

Sarah Wearing (Senior Statutory Auditor)

For and on behalf of HPH, Statutory Auditor

54 Bootham YORK YO30 7XZ

19 December 2024

HPH is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

17

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YORK CHILDCARE LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2024

Note
Income and endowments from:
Donations and legacies
2
Charitable activities
3
6
Investments
4
Total income
Expenditure on:
Other trading activities
6
Charitable activities
7
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
13
Total funds carried forward
Income from other trading
activities		 Unrestricted
Funds
£
2,862
1,398,638
103,151
-		 Restricted
Funds
£
-
-
-
-		 Endowment
Funds
£
-
-
-
3,902		 Total
31 March
2024
£
2,862
1,398,638
103,151
3,902		 Total
31 March
2023
£
2,144
1,277,663
89,718
1,003
1,504,651 - 3,902 1,508,553 1,370,528
79,172
1,431,282		 -
214		 -
-		 79,172
1,431,496		 73,893
1,462,457
1,510,454 214 - 1,510,668 1,536,350
(5,803)
2,828		 (214)
1,074		 3,902
(3,902)		 (2,115)
-		 (165,822)
-
(2,975)
181,103		 860
1,345		 -
23,596		 (2,115)
206,044		 (165,822)
371,866
£ 178,128 £ 2,205 £ 23,596 £ 203,929 £ 206,044

The notes on pages 21 to 32 form part of these financial statements

18

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 MARCH 2024

Company Registration Number: 02476480

Consolidated Consolidated CharIty only CharIty only
2024 2023 2024 2023
£ £ £ £
Note
Fixed assets
Tangible fixed assets 9 39,773 49,122 39,773 49,122
Investment in subsidiary 10 - - 1 1
39,773 49,122 39,774 49,123
Current assets
Debtors 11 99,220 71,481 86,598 63,864
Bank balances and cash 20 161,161 208,614 136,953 188,760
260,381 280,095 223,551 252,624
Creditors: amounts falling due
within one year
Creditors 12 96,225 123,173 59,396 95,703
Net current assets 164,156 156,922 164,155 156,921
Total assets less current liabilities 203,929 206,044 203,929 206,044
Net assets £ 203,929 £ 206,044 £ 203,929 £ 206,044
Funds
Unrestricted
Undesignated 178,128 181,103 178,128 181,103
Designated - - - -
Restricted -
Restricted 2,205 1,345 2,205 1,345
Endowment 23,596 23,596 23,596 23,596
Total Funds 13 £ 203,929 £ 206,044 £ 203,929 £ 206,044

The notes on pages 21 to 32 form part of these financial statements. Approved by the Board on 19 December 2024 and signed on its behalf by:

Dimitrios Stafylas Directors and Trustees

Jennifer Jenkins Sarah Weatherall

19

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

CONSOLIDATED AND CHARITY STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2024

Note
19
20
Cash and cash equivalents at beginning of
the reporting period
Cash and cash equivalents at end of the
reporting period
Change in cash and cash equivalents in
the reporting period
Net cash provided by operating activities		 2024
2023
£
£
(47,453)
(160,343)
(47,453)
(160,343)
208,614
368,957
£161,161
£208,614
Consolidated		 2024
2023
£
£
(51,807)
(180,197)
(51,807)
(180,197)
188,760
368,957
£136,953
£188,760
Charity only		 2024
2023
£
£
(51,807)
(180,197)
(51,807)
(180,197)
188,760
368,957
£136,953
£188,760
Charity only
(180,197)
368,957
£188,760

The notes on pages 21 to 32 form part of these financial statements.

20

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) 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, YO30 6NP.

b) Basis of preparation

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

York Childcare Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

c) 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 by the board detailed in the Report of the Management Board. The directors and trustees, having considered the foregoing and having made due enquiries, continue to adopt the going concern basis in preparing the financial statements which assumes that the charitable company will continue in operation for the foreseeable future.

d) Income recognition

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

e) Donated services and facilities

Donated professional and other services, and donated facilities, are recognised as income when the charity has control over the item, any conditions associated with 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 102).

On receipt, donated professional and other services, and donated facilities, are recognised on the basis of the value of the gift to the charity which is the amount the charity 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 received during the year.

21

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

1. ACCOUNTING POLICIES (continued)

l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with 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

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

o) Government Grants

Grant income is recognised when the conditions for receipt 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, except where the grant is compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs in which case it is recognised as income in the period in which it becomes receivable.

22

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

1. ACCOUNTING POLICIES (continued)

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Costs of charitable activities include those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. Costs relating to a particular activity are allocated directly as set out in note 6.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's activities. These costs have been allocated to expenditure on charitable activities.

g) Fund accounting

Unrestricted 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 trustees out of unrestricted general funds for specific future purposes or projects.

Restricted and Endowment funds are funds which are used in accordance with specific restrictions 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 donated assets, at their fair value at the date of acquisition). Tangible fixed assets are capitalised when the cost exceeds £1,000.

Depreciation of tangible fixed assets is provided at the following annual rates in order to write off each asset over its estimated useful life:

Leasehold alterations over the term of the lease Fixtures, fittings and equipment over 10 years Nursery equipment over 5 years Computer equipment 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.

j) Operating leases

Rentals payable under operating leases are charged on as straight line basis over the lease term.

k) 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 discounts due.

23

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted Restricted Endowment Total Total
Funds Funds Funds 2024 2023
£ £ £ £ £
2. DONATIONS AND LEGACIES
Donations and
covenants £ 2,862 £ - £ - £ 2,862 £ 2,144

Donations received during the year were from The Sylvia and Colin Sheperd Charitable Trust (£2,000) and various donations.

In 2023 no donations and legacies related to Restricted Funds.

Unrestricted
Funds
£
3.
CHARITABLE ACTIVITIES
Nursery fees
1,394,335
48
Grants receivable
1,500
Other income
2,755
£ 1,398,638
Unrestricted
Funds
£
4.
INVESTMENT INCOME
Bank interest receivable
£ -
In 2023 no income from charitable activities
Out of school support
services		 Restricted
Endowment
Funds
Funds
£
£
-
-
-
-
-
-
-
£ -
£ -
Restricted
Endowment
Funds
Funds
£
£
£ -
£ 3,902
related to Restricted Funds.		 Total
2024
£
1,394,335
48
1,500
2,755
£ 1,398,638
Total
2024
£
£ 3,902		 Total
2023
£
1,269,078
233
4,500
3,852
£ 1,277,663
Total
2023
£
£ 1,003

In 2023 £1,003 related to Endowment Funds.

5. NET INCOME FOR THE YEAR

Net income for the year is stated after charging: 2024 2023
£ £
Depreciation 9,349 9,470
Rent on short leaseholds 58,155 61,149
Auditor's remuneration audit 4,725 4,500
other services 8,519 5,748

24

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

6. 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 Service Ltd , which was incorporated on 30 March 2022 in the United Kingdom (company number 14013880) and pays its taxable profit to the charity by corporate gift aid. A summary of the trading results which have been consolidated on a line by line basis is shown below.

Summary profit and loss account:
Turnover
Administration expenses
Profit for the financial period
Corporate gift aid distribution to parent charity
Retained profit carried forward
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Aggregate share capital and reserves		 Year end to
31 March
2024
£
103,151
(79,172)
23,979
(23,979)
-
60,809
(60,809)
-
-		 Period to
31 March
2023
£
89,718
(73,893)
15,825
(15,825)
-
43,293
(43,293)
-
-

After adjusting for intercompany transactions upon consolidation, the income from trading activities was £103,151 (2023 - £89,718) and expenditure was £103,151 (2023 - £89,718).

25

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

7. CHARITABLE ACTIVITIES EXPENDITURE

Nurseries
Other costs
Out of school services
Grants paid to clubs
Grants paid as Assisted
Places
Office and governance
costs		 Unrestricted
Funds
£
12,844
1,274,852
-
143,586
£ 1,431,282		 Restricted
Funds
£
-
214
-
-
£ 214		 Endowment
Funds
£
-
-
-
-
£ -		 Total
2024
£
12,844
1,275,066
-
143,586
£ 1,431,496		 Total
2023
£
9,457
1,336,865
-
116,135
£ 1,462,457

In 2023 £739 of expenditure related to Restricted Funds.

8. EMPLOYEE INFORMATION

Salaries
Social security costs
Pension costs
Average number of employees for the period
Nursery staff
Office staff
Out of school service staff
The aggregate payroll costs of the Charitable Company for the year
are as follows:		 2024
£
1,007,765
61,563
17,514
£ 1,086,842
No.
54
6
3
63		 2023
£
997,750
58,264
14,993
£ 1,071,007
No.
60
4
2
66

No employees were paid emoluments amounting to £60,000 or more (2023 - none) .

Included in the above figures are 24 (2023 - 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 charity administers 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 at the rate of 3% 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 £191,688 (2023 - £194,372).

26

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

9. TANGIBLE FIXED ASSETS

Consolidated and Charity

Cost
At 1 April 2023
Additions
At 31 March 2024
Depreciation
At 1 April 2023
Charge for year
At 31 March 2024
Net Book Value
At 31 March 2024
At 31 March 2023		 Leasehold
alterations
£
270,331
-
270,331
223,944
8,354
232,298
£ 38,033
£ 46,387		 Nursery
equipment
£
187,904
-
187,904
185,169
995
186,164
£ 1,740
£ 2,735		 OOSMS
equipment
£
899
-
899
899
-
899
£ -
£ -		 Total
£
459,134
-
459,134
410,012
9,349
419,361
£ 39,773
£ 49,122

All fixed assets held are for charitable use £816 (2023 - £1,007) related to Restricted Funds. Note 15 Operating lease commitments sets out the terms of the leases.

10. INVESTMENTS

The charity's investment is in its wholly owned trading subsidiary York Childcare Out of School Club Support Service Ltd, whose share capital was acquired for £1 on 30 March 2022.

11. DEBTORS

DEBTORS
Income debtors
Other debtors
Prepayments and accrued income
Amounts due from subsidiary
undertaking		 2024
2023
£
£
81,387
57,252
318
367
17,515
13,862
-
-
£ 99,220
£ 71,481
Consolidated		 2024
2023
£
£
49,402
36,329
317
35
12,900
11,675
23,979
15,825
£ 86,598
£ 63,864
Charity
£ 63,864

In 2023 no debtors related to Restricted Funds.

27

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

12. CREDITORS - amounts falling due within one year

2024
2023
£
£
Trade creditors
35,573
24,523
Fees and bonds paid in advance
16,641
45,616
Taxation and social security
23,011
22,167
Accruals
12,027
22,118
Other creditors
8,973
8,749
£ 96,225
£ 123,173
Fees and bonds paid in advance
Brought forward balance
45,616
45,565
Deferred in the year
-
11,753
Released in the year
(28,975)
(11,702)
Carried forward balance
£ 16,641
£ 45,616
FUNDS
Consolidated and charity
As at
01/04/2023
Income
Expenditure
£
£
£
Unrestricted:
Undesignated
181,103
1,425,479
(1,431,282)
-
-
-
Restricted:
1,007
-
(191)
338
-
(23)
Endowment
23,596
3,902
-
Total funds
£ 206,044
£ 1,429,381
£(1,431,496)
In 2023 no creditors related to Restricted Funds.
Capital Access Grant -
SGN
Green Spaces - SGN
Designated - Roof
Repairs
Consolidated		 2024
2023
£
£
Trade creditors
35,573
24,523
Fees and bonds paid in advance
16,641
45,616
Taxation and social security
23,011
22,167
Accruals
12,027
22,118
Other creditors
8,973
8,749
£ 96,225
£ 123,173
Fees and bonds paid in advance
Brought forward balance
45,616
45,565
Deferred in the year
-
11,753
Released in the year
(28,975)
(11,702)
Carried forward balance
£ 16,641
£ 45,616
FUNDS
Consolidated and charity
As at
01/04/2023
Income
Expenditure
£
£
£
Unrestricted:
Undesignated
181,103
1,425,479
(1,431,282)
-
-
-
Restricted:
1,007
-
(191)
338
-
(23)
Endowment
23,596
3,902
-
Total funds
£ 206,044
£ 1,429,381
£(1,431,496)
In 2023 no creditors related to Restricted Funds.
Capital Access Grant -
SGN
Green Spaces - SGN
Designated - Roof
Repairs
Consolidated		 2024
2023
£
£
Trade creditors
35,573
24,523
Fees and bonds paid in advance
16,641
45,616
Taxation and social security
23,011
22,167
Accruals
12,027
22,118
Other creditors
8,973
8,749
£ 96,225
£ 123,173
Fees and bonds paid in advance
Brought forward balance
45,616
45,565
Deferred in the year
-
11,753
Released in the year
(28,975)
(11,702)
Carried forward balance
£ 16,641
£ 45,616
FUNDS
Consolidated and charity
As at
01/04/2023
Income
Expenditure
£
£
£
Unrestricted:
Undesignated
181,103
1,425,479
(1,431,282)
-
-
-
Restricted:
1,007
-
(191)
338
-
(23)
Endowment
23,596
3,902
-
Total funds
£ 206,044
£ 1,429,381
£(1,431,496)
In 2023 no creditors related to Restricted Funds.
Capital Access Grant -
SGN
Green Spaces - SGN
Designated - Roof
Repairs
Consolidated		 2024
2023
£
£
Trade creditors
35,573
24,523
Fees and bonds paid in advance
16,641
45,616
Taxation and social security
23,011
22,167
Accruals
12,027
22,118
Other creditors
8,973
8,749
£ 96,225
£ 123,173
Fees and bonds paid in advance
Brought forward balance
45,616
45,565
Deferred in the year
-
11,753
Released in the year
(28,975)
(11,702)
Carried forward balance
£ 16,641
£ 45,616
FUNDS
Consolidated and charity
As at
01/04/2023
Income
Expenditure
£
£
£
Unrestricted:
Undesignated
181,103
1,425,479
(1,431,282)
-
-
-
Restricted:
1,007
-
(191)
338
-
(23)
Endowment
23,596
3,902
-
Total funds
£ 206,044
£ 1,429,381
£(1,431,496)
In 2023 no creditors related to Restricted Funds.
Capital Access Grant -
SGN
Green Spaces - SGN
Designated - Roof
Repairs
Consolidated		 2024
2023
£
£
6,335
5,636
16,641
45,616
17,898
20,384
9,549
15,318
8,973
8,749
Charity		 2024
2023
£
£
6,335
5,636
16,641
45,616
17,898
20,384
9,549
15,318
8,973
8,749
Charity
£ 96,225 £ 123,173 £ 59,396 £ 95,703
45,616
-
(28,975)		 45,565
11,753
(11,702)		 45,616
-
(28,975)		 45,565
11,753
(11,702)
£ 16,641 £ 45,616 £ 16,641 £ 45,616
Expenditure
£
(1,431,282)
-
(191)
(23)
-		 Transfers
£
2,828
-
-
1,074
(3,902)		 As at
31/03/2024
£
178,128
-
816
1,389
23,596
£ 206,044 £ 1,429,381 £(1,431,496) £ - £ 203,929

13. FUNDS

28

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2024

13. FUNDS (continued)

Consolidated and charity

Unrestricted:
Undesignated
Restricted:
Endowment
Total funds
Capital Access Grant -
SGN
Designated - Roof
Repairs
Green Spaces - SGN		 As at
01/04/2022
£
268,205
77,981
1,708
376
23,596
 Income
£
1,295,632
-
-
-
1,003		 Expenditure
£
(1,365,493)
(96,225)
(701)
(38)
-		 Transfers
£
(17,241)
18,244
-
-
(1,003)		 As at
31/03/2023
£
181,103
-
1,007
338
23,596
£ 371,866 £ 1,296,635 £ (1,462,457) £ - £ 206,044

Purposes of the funds and transfers between funds

Unrestricted designated funds

The Roof Repairs Fund is for repair of Heather's Nursery roof. This was repaired in the year ended 31 March 2023.

Restricted funds

The Capital Access Grants are grants funded under the Early 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 actual expenditure if the item is not capitalised.

The Green Spaces 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 the cost of Assisted Places at the nurseries. The Trustees have the power to invest and are permitted to make use of the investment funds as security for borrowings for development purposes. The endowment is currently invested in a cash deposit account in order to provide security for borrowings in connection with Scarcroft Green Nursery.

The Endowment income £3,902 (2023 - £1,003) was transferred to the Unrestricted Fund in accordance with the terms of the endowment to fund Assisted Nursery Places.

29

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted

Consolidated
Tangible fixed assets
Current assets
Current liabilities
At 31 March 2024
Tangible fixed assets
Current assets
Current liabilities
At 31 March 2023
Charity only
Tangible fixed assets
Current assets
Current liabilities
At 31 March 2024
Tangible fixed assets
Current assets
Current liabilities
At 31 March 2023		 Undesignated
Funds
£
38,065
235,396
(96,225)
£ 177,236
47,414
256,161
(123,173)
£ 180,402
38,767
198,566
(59,396)
£ 177,937
48,116
228,690
(95,703)
£ 181,103		 Designated
Funds
£
-
-
-
£ -
-
-
-
£ -
-
-
-
£ -
-
-
-
-
£		 Restricted
Funds
£
816
1,389
-
£ 2,205
1,007
338
-
£ 1,345
816
1,389
-
£ 2,205
1,007
338
-
£ 1,345		 Endowment
Funds
£
-
23,596
-
£ 23,596
-
23,596
-
£ 23,596
-
23,596
-
£ 23,596
-
23,596
-
£ 23,596		 Total
Funds
£
38,881
260,381
(96,225)
£ 203,037
48,421
280,095
(123,173)
£ 205,343
39,583
223,551
(59,396)
£ 203,738
49,123
252,624
(95,703)
£ 206,044

15. OPERATING LEASE COMMITMENTS

The total future value of minimum lease payments is as

Within one year
Within two to five years
After more than five years
The total future value of minimum lease payments is as		 2024
£
70,822
171,888
74,409
£ 317,119		 2023
£
63,467
214,299
69,997
£ 347,763

The amount of non-cancellable operating lease payments recognised as an expense during the period was £58,155 (2023 - £61,149).

30

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

16. TRANSACTIONS WITH DIRECTORS, TRUSTEES AND RELATED PARTIES

No remuneration, benefits or expenses were received by any directors or trustees during the year in respect of their services to the Charitable Company. There are no other related party transactions (2023 - none).

17. CONSTITUTION

York Childcare Limited is a company limited by guarantee, number 02476480. In the event of the Charitable Company being wound up, the liability of the members is limited to one pound.

18. TAXATION

As a registered charity, York Childcare Limited is exempt from the tax on income falling within sections 466 to 493 of the Corporation Tax Act 2010 to the extent that this is applied to its charitable objects. No tax charges have arisen in the Company.

19. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Consolidated Consolidated Charity Charity
2024 2023 2024 2023
£ £ £ £
Net income for the reporting period (2,115) (165,822) (2,115) (165,822)
Depreciation of tangible fixed assets 9,349 9,470 9,349 9,470
Decrease/(increase) in debtors (27,739) (37,831) (22,734) (30,214)
Increase /(decrease) in creditors (26,948) 33,840 (36,307) 6,369
Net cash provided by / (used in)
operating activities £ (47,453) £ (160,343) £ (51,807) £ (180,197)

20. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash at bank and in hand
Total cash and cash equivalents		 Consolidated
2024
£
161,161
£ 161,161		 2023
2024
2023
£
£
£
208,614
136,953
188,760
£ 208,614
£ 136,953
£ 188,760
Charity		 2023
2024
2023
£
£
£
208,614
136,953
188,760
£ 208,614
£ 136,953
£ 188,760
Charity
£ 188,760

31

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

FOR THE YEAR ENDED 31 MARCH 2024

21. ANALYSIS OF CHANGES IN NET DEBT

At
01/04/2023
£
Charity only
Cash at bank and in hand
188,760
£ 188,760
Consolidated
Cash at bank and in hand
208,614
£ 208,614
22. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
Funds
Funds
£
£
Income and endowments from:
Donations and legacies
2,144
-
Charitable activities
1,277,663
-
Income from other trading activities
89,718
-
Investments
-
-
Total income
1,369,525
-
Expenditure on:
Other trading activities
73,893
-
Charitable activities
1,461,718
739
Total expenditure
1,535,611
739
Net income
(166,086)
(739)
Transfers between funds
1,003
-
Net movement in funds
(165,083)
(739)
Reconciliation of funds:
Total funds brought forward
346,186
2,084
Total funds carried forward
£ 181,103
£ 1,345		 Cash-flows
£
(51,807)
£ (51,807)
(47,453)
£ (47,453)
Endowment
Funds
£
-
-
-
1,003
1,003
-
-
-
1,003
(1,003)
-
23,596
£ 23,596		 At
31/03/2024
£
136,953
£ 136,953
161,161
£ 161,161
31 March
2023
£
2,144
1,277,663
89,718
1,003
1,370,528
73,893
1,462,457
1,536,350
(165,822)
-
(165,822)
371,866
£ 206,044

32

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

The following pages do not form part of the statutory financial statements and contain unaudited information

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

CHARITY ONLY - DETAILED INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

INCOME
Donations
Nursery fees
Out of school support services
Grants receivable
Other income
Gift Aid distribution from subsidiary
Bank interest receivable
TOTAL INCOME		 2024
£
2,862
1,394,335
48
1,500
2,755
1,401,500
23,979
3,902
£ 1,429,381		 2023
£
2,144
1,269,078
233
4,500
3,852
1,279,807
15,825
1,003
£ 1,296,635

33

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

CHARITY ONLY - DETAILED INCOME AND EXPENDITURE ACCOUNT - continued FOR THE YEAR ENDED 31 MARCH 2024

TOTAL INCOME - brought forward
Direct charitable expenditure
Nurseries
Payroll and staff costs
Advertising and marketing
Bank charges
Books and publications
Cleaning contracts
Computer costs
Consumables
CRB/DBS checks
Depreciation
Discounts
Leases
Insurances
Medical costs
Miscellaneous expenses
Ofsted annual inspection fees
Paid grants - assisted places
Photocopying
Postage
Professional fees - accountancy
Professional fees - legal
Professional fees - payroll bureau
Rates
Rent
Repairs and maintenance
Staff uniforms
Stationery
Subscriptions
Telephone and internet
Toys and play items
Training
Travel
Utilities
NET INCOME - carried forward		 2024
£
£
1,429,381
953,605
16,365
1,274
47
24,022
4,954
39,696
1,217
8,664
51,666
7,247
15,416
3,872
540
661
12,844
5,066
-
271
1,596
8,519
6,279
58,155
19,929
1,389
1,593
7,544
6,059
4,818
3,983
610
20,009
(1,287,910)
£ 141,471		 £
£
1,296,635
964,253
8,626
1,409
266
20,203
4,121
35,545
1,013
8,773
31,868
8,202
13,201
3,357
319
660
9,457
4,599
13
8,517
558
5,748
7,240
61,149
96,225
2,250
846
2,497
5,364
4,736
10,611
263
24,433
(1,346,322)
£ (49,687)
2023		 £
£
1,296,635
964,253
8,626
1,409
266
20,203
4,121
35,545
1,013
8,773
31,868
8,202
13,201
3,357
319
660
9,457
4,599
13
8,517
558
5,748
7,240
61,149
96,225
2,250
846
2,497
5,364
4,736
10,611
263
24,433
(1,346,322)
£ (49,687)
2023
£ (49,687)

34

Docusign Envelope ID: 8D2140A1-F147-412B-8824-310FF536909E

YORK CHILDCARE LIMITED

CHARITY ONLY - DETAILED INCOME AND EXPENDITURE ACCOUNT - continued

FOR THE YEAR ENDED 31 MARCH 2024

NET INCOME - brought forward
Office & governance costs
Payroll and staff costs
Consumables
Insurances
Depreciation
Photocopying
Postage
Professional fees - audit
NET INCOME / (DEFICIT)		 2024
£
£
141,471
133,237
290
3,243
685
1,353
53
4,725
143,586
(143,586)
£ (2,115)		 2023
£
£
(49,687)
106,754
98
3,056
697
997
33
4,500
116,135
(116,135)
£ (165,822)		 2023
£
£
(49,687)
106,754
98
3,056
697
997
33
4,500
116,135
(116,135)
£ (165,822)
£ (165,822)

35