REGISTERED COMPANY NUMBER: 02581092 (England and Wales) REGISTERED CHARITY NUMBER: 1015045 REPORT OF THE TRUSTEES AND FINANCIAL ST ATEMENTS FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 FOR HAWKS ROAD COMMUNITY NURSERY LTD RMT Ribchesters Accountants and Business Advisors rinchale House Belmont Business Park Durham DHI ITW
HAWKS ROAD COMMUNITY NURSERY LTD CONTENTS OF THE FINANCIAL STATEMENTS FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 Page Report of the Trustees Independent Examinerls Report Statement of Finan¢ig1 Aetlvltles Balanee Sheet Cash Flow Statement Notes to the Cash Flow Slatement io Notes to the Flnaneial Statements
HAWKS ROAD COMMUNITY NURSERY LTD REPORT OF THE TRUSTEES FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 The trustees who are also directors of the charity for the piirposes of the Companies Act 2006, present their report with the flnancial stalenients of the charity for the period l April 2023 to 31 August 2024. The trustees have adopted the provisions of Accounting and Reportllig by Charities: Statement of Recommended Practice applicable to charities preparing their accoiints in accordance with the Financial Reporting Standard applicable in the UK aiid Republic of Ireland (FRS 102) (effective l Janu<lry 2019). OBJF.CTIVES AND ACTIVITIES Objectives and aims Hawks Koad Lommunity Nursery Limited operates a community nursery in East Gateshead known as "TIK-TOK" The company was established in May 1991 gaining charitable statiis in 1992. A second Nursery at Hertfordshire House, Pelaw was opened in June 2015 and closed in December 2021 following a strategic review of operations. The objects of the charity - as set out in the Memorandum and Articles of Association of 8 February 1991 are to provide facilities for the day care, recrealion and eduLation of children undcr the age of 5 whose parents or guardians work in the mctropolitan area of Gateshead or elscwhere in the counties of Durham, I'yne and Wear and Northumberltind. The Charity Lontinues to fulfil its objeclivcs given that 'fiK-TOK provides high qu(Ility dffordable child¢are to the IoLal community, supporting thosv parents who wish to eithcr return to work or continue with Iheir eduLiltion. Its aim is to woi'k in partnersliip wilh par¢nts to promolc a slimu1411inb? aiid ex¢itingy environmcnl where children raii progres.8 at Éheir own rale. 'fhc puipose built buildin&)s. lunded with substantial support frrom piiblic 8cctor sourLes, providc us with thc opportlinity to rcali.sc these aspiration8. The Company's Memorandum provides for operating as has been described above - it would need to be amcndcd if the Company sought to introduce significant diversity. Publie benefit The trustees havc complied with the duly in seLliun 17{5) of the 2011 Lharitiey Act to liave dlie regard to guidancc published by the Charity Commission with rebiard to PLibliL bciictit statements. Public benefit is inhercnt in the objecls of the Charity. The Trustees have paid due regy<ird to guidance issued by the Charity Coinmission in decidin&i what ilLtivitics the company should undcrtakc. Page I
HAWKS ROAD COMMUNITY NURSERY LTD REPORT OF THE TRUSTEES FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 STRATEGIC REPORT Achievement and performance Charitable activities The trustees have complied with their duty in, Section 4 of the 2006 Charities Act and have due regard to guidance published by the Charity Commission. In summary. We offer free nursery education for children aged 9 months - 2 years who now receive 15 hours of free childcare per week, as required by CUellt govenlmenl policy and strongly support Gateshead CounLil's Sure Start Policy. We also provide up to 30 hours per week free nursery education foi 3-5 year olds. W¢ offer these hours flexibly in order to support those parents wishing to return to work or higher ediiLation. We use the funding streams available to us to improve the personal and professional development of all of our staff and continue to impletnent a rigorou8 and tailored progriimmc of staff training. Under the bFuidilnCC of OFSTED and the S¢lf F,valualion proLedurc our staff continue tu rcflcct on the service we offer to ensure bcsi practiec. Our Spccial b,ducalional Needs Co-ordinalors conlinue to work closcly with Ihe Early Years Inclusion and Child Development Tcams to improve outcomes for the children in our care who Tequire additional 5UPPOrt. Thc most recent Ofsted inspection (June 2019) rc8ulted in an assessment ot Good" This report covers the 17 month financial period l April 2023 - 31 August 2024. Diiring that pcriod we continued our poliLy ol. upLTrrading and refurbishing the niirsery on d phased basis with expenditurc on equipincnt for thc children being prioritised. We undertook a si8nifiLant rcfurbishmenl of the toilei faLilitie8 in FL.brudry 2024 at sigiiificaiit cost. This has undoubtedly bccn a factor in our ability to attracl new childrcn despilc competition from local nurseries. Future levels of activity will dcpend on ihe usual factors: trends in birth rates locally. competition lor pre-school children. and Ihe number8 of stiident parents altcnding th¢ locdl Lollege. Wc will Lontinue to seek to employ well-qualificd, C<iring staff and will inlensify staff iraining as an essential part of our plans for thc ttIre. The inveslmcnt in well-motiV<ited statT can only hav¢ a posilive impact on th¢ l¢vcl of care and education thal the nurserics provide and the manner in which it is delivercd. Page 2
HAWKS ROAD COMMUNITY NURSERY LTD REPORT OF THE TRUSTEES FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 STRATEGIC REPORT Financial review Financial position As above, this report covers a 17 month financial period lo 31 August 2024. Previoiisly (and iii tlie futiire) the cl)arity prepared its annual report covering a 12 month pei'iod. In 2023124 direct comparisons with previous periods are therefoi'e difficiilt. But bi'oadly. Total incoming resoiii'ces in the 17 month period to 31 August 2024 amollllted to £849,468, of whicli £27,704 reprcscnted bank interest reccivable (£9,122 in the previoiis 12 monih period). That repi-¢seiits a total proportionate increase versus the previoiis 12 month period of 6.50/0. Parent conlributions paid directly reprcsented 390/0 of charitable activity income versus 610/0 local Governrnent contributions (2022123. 350/d650/0). Whilst that overall increase in incoming resources of 6.5 % is pleasing, it has been more than offset by an increase in the coslloverhead base. F.xp¢nditurc on Lharital)Ic ilctivitics iii Ihe 17 monih pcriod totall¢d £843,962. 1.hat rcprcsents a proporlionalc iiicrcase vci'su.s the pi.cvi011s 12 monih p¢riod ol- 15.80/0. 'I'hat was mainly driven by an incre(Ise in Ihc wages (and associalcd employers nalioniil insui'ance (Ind workplace pension costs) of cliild carcrs iiol le41St as (t rcsult of miiiimum W1( gFe/living wag¢ increascs. (yross wab7C8 of childcare providers increased by 11.8 %. In addition the charity inciiritd somewhat LxLeplioiial Icvcls of rcpair c0515. pailicularly r¢lating lo Ihc rclurbishmcnl of the toilets in Fcbniary 2024 (£41,582). In additioii, and iii line with ccoiioinic/co81 of livinu> incrcases L)cncr¢illy. tliei'c wcr¢ sigyiiificanl uplifts in tlic cosls of in511f<ince, utilities, water elL. li should be rcincinbervd that of the lotal overhe(td amouiit in thc 17 month pcriod, £52,158 rcprcscnled dcprccidlion in rcspect of tIIc Cqliipnicnl, fiirnishingjs and preniisc8, whiLh is a non Ciish c05t {£39.370 in Ihe prcvious 12 nionth period). Linhcmiore, non-overheiid support Losts - i'cpresenlingy the wagc.% and assoLiatcd cmpluyers Nl and workplace peiision Lontribulion5 of onice staff - incrL¢ised Si&Tnificantly in Ihc period (total £63,697) by 14.40/u. Aftcr deduLtingi the Losls of ihe Indepeiidcnl F.X¢imination of Ihc accoLintS, thc charily returiied an over<ill loss in Ihe 17 Inonth period of £60,7118 (previou8 12 month pcriod. loss of £2,327). Howcvcr, given thal ol- Ihdt105s £52,158 relalcd lu non cash dcprccialion, Ihc cominei-cial reality of thc posilionlcash flow wa$ somewhat stron&)cr. As a re8iilt of Ihe loss, lolal flinds of the charily rediiced from £1,499,080 at 31 March 2023 to £1,438,292 al 31 Augusl 2024. Mucli of thai reduLlion however relates to the fall in book valuc of the propcrty held oil long leasehold. Ciirrent asscts - that is. thc value of cash <ind other liquid assets held itt 31 Augiist 2024 - Ics8 Clirrenl liabilities - that is, the valiic of defcrred inLonic and othcr dcbts <lt tliat date - amoiintcd to £491,218, a fall of £10,372 broadly rcpresenling the cash loss (ex¢luding depreciation in th¢ period). Within ov¢rall tot(Il ndS of £1.438,292, £888,278 repre,scntcd Unrestricted Funds and £550,014 related to tlie Endowinent Fund. The financial position of ihe charity at the balance sheet date is therefore healthy. Principal fiindin% sources The key fiindcrs of the opcrations iindcrtaken by ilie charity are central and local govemiMcnl under their childcare iniliatives. The contribulioiis from these bodies are auginented by parental contributions, historically averaging around a 2..1 split. Investment policy and objectives Funds ihat are not immediately t-eqiiired are invested in Suitable deposits, attenipting to maximise ihe retuin, risk free. Reserves policy It conliniies to be the policy of the cliaritable company to maintain iinrestricted fiinds, which are oiir free reserves, at a level suffIcient to cover fluctuations in income based on pi'ojectioii relating to child niimbers on a term by terni basis. The amount of such reserves al 31 st March 2024 is £888,278 as above. Of that, net currentlliquid assets amounted to £491,218. Page 3
HAWKS ROAD COMMUNITY NURSERY LTD REPORT OF THE TRUSTEES FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 STRATEGIC REPORT Financial review Going concern Given the level of net assets held at 31 Augusi 2024, the trustees consider the charity to be a going concern. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document Hawks Road Community Nursery Limited is a company limited by guarantee, and a registcred Lharity. It operates linder the name of TIK - TOK and is governed by ils Memorandum and Articles of Association. The Memorandum established the objectives ofihe charitable comp<tny. Those objecls - as set out in the Mcmorandum and Articles of Association of 8 February 1991- are to provide facilities for the day care, recreation and education ol childrcn under the age of 5 whose parents or guardians work in the metropolilan area of Gateshead or elsewhere in ihe Counties of Durham, Tyne and Wear and Northumberland. Charity No. 1015045. Comp<iny Rcgistration No. 02581092 Organi8ational structure 'he day tv day man¢igement of the nursery is delegated to a fiilly qiialified Managcr, Ms K Harker , who is supported by four assistant managiers and nursery .staff workingy boih full and part timc fitting in with home commitments (family friendly policies). All other deLisions are made by agreemcnt of the Tru5tee5 at management commitlce mcctin¥s. In-house financial systcm5 arc in placc and arc supervi.8ed by a qiialified member of staff. 'riK-TOK is registered with Gateshead Social Serviccs working closely to the local authority Guidclines. The nursery is in5pectcd on a regular basis by OTr'STED. Thc regislercd officc of the charity is Tliv HuulLVdl'd 14olme5 Drive (iateshead NCIO ODJ Induction and trllining of new trustee lliwks Road Comtnunity Nurscry l.imited adhcres to guidelines issued by the Charity Commissiun for the induction and training of Trustees. 'rrustees arc elected by the membership at the Annual General Meeting. All new tru8tces are given an induclion pack detailing the Lharity's constitution, strategic plans, recent annual report and accounts dnd ihe Charity Commi55ion leaflet - cc3 (a). Details of the IrLlStees (whu arc also the directors for ihe purposc of company l¢lW) who served during the year and up to the date of signature of the financial statements are set out above. Risk management The trustees have a duty to identify and review the risks to which the charitycharity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Trustees are aware of their responsibilities under CiliTent Charity legislation, and the need for a robust and creditable risks policy. Intemal risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Systems have been established lo ensure that risks are r¢viewed on a regular basis and findings reported to the Board. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 025S1092 (England and Wales) Page 4
HAWKS ROAD COMMUNITY NURSERY LTD REPORT OF THE TRUSTEES FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 Registered Charity number 1015045 Registered 0]ce TikTok Nursery The Boulevard Holmes Drive Gateshead Tyne and Wear NEIOODJ Trustees F I Milburn A C Miller R Richardson P J Maughan (resibncd 181612024) M Nurse (resigned 181612024) Independent Examlner RMT Ribchesters AccouT]tants and Dusiness Advisors Finchale House BelmoT]t Business Park Durham DHI ITW Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on I l Dccember 2024 and signed on the board's behalf by: A C Miller- Trustee Page 5
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HAWKS ROAD COMMUNITY NURSERY LTD Independent examiner's report to the trustees of Hawks Road Community Nursery Ltd ('the Company,) I report to the charity trustees on my examination of the accounts of the Company for the period l April 2023 to 31 Aiigust 2024. Responsibilities and basis of report As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of tlie accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination. I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 201 l Act,). In carying out my examination I have followed the Directions given by the Charity Commission under Seclion 145(5) (b) of the 201 l Act. Independent examiner's stalcment Since your Charity's gross income exceeded £250.000 your examiner must be a member of a lisied body. I can confirm thai l am qualified to undertake the examinalion because l am a member of th¢ Institute of chartered ALcounlants in England and Wales, which is one of thc list¢d bodies. I have complcted my examination. I conffftn that no matters havc corne to my attention in connection with the examination givinby me cause to bclieve: accounling records were not kcpt in respeLt of the Company as rcquired by Seclion 386 of thc 2006 Act. or the acLounts do not iiccord with those rccords. or tlie ¢iccounts do not comply with thc aLcounling rcquiremcnls of Scctioii 396 of thc 2006 Act otlier than any reqiiirement thal the accounts give a true and fair view whilh is not il maller considered as part of (in independent cxaminalion; or tlie aLcoiints have not been prepdrcd in accordancc with thc rnelhods and principles of the Slalemenl of ReLominendcd l)ractice for accounlinbi (ind reportingy by charities (applic¢ible to Lharilie5 prcparing their accoiints in aLLordance with thc Financial Reporting Standard applicable in Ihc IJK and Republic of Ircland (fRS 102)). I liave iio concerns and havc conic llcross no other matters in connection with the examinittion to which &itte.nlion shoiild be drawn in this report in order to cnable a proper iinderslanding of the aLcounts tu bc reiiched. Robert Ribchester, FCA MA The Institute of Chartered Accountants in England and Wales RMT Ribchesters Accountants and Busincss Advisors FinLhalc I louse Belmunl Busincss Park Diirham DHI ITW 21 January 2025 Page 6
HAWKS ROAD COMMUNITY NURSERY LTD STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 Period 1.4.23 to 31.8.24 Total funds Year Ended 31.3.23 Total funds Unrestricted fund Endowmenl fund Notes INCOME AND F.NDOWMENTS FROM Charitable aetivilies Charitable activities 821,764 821,764 544,412 Investment income 27,704 27,704 9,122 Total 849,468 849.468 553,534 EXPENDITURE ON Churitable activities Charitable aLtivitie5 863,836 46,420 91U,256 555,861 NET INCOMEI(EXPENDJTURE) (14,368) (46,420) (60,788) (2,327) RECOIYCALAATIC)N OF FUNI)S Total ndS brouglit lorward 902,646 596,434 1.499,080 1.501,407 TOTAL FUIYDS CARRIED FORWARD 888,278 550,014 1,438,292 1,499,080 The notes fonn part of these financial statements Page 7
HAWKS ROAD COMMUNITY NURSERY LTD BALANCE SHEET 31 AUGUST 2024 2024 Total lunds 2023 Total funds Unrestricted fund F.ndowment fund Notes FIXED ASSETS Tdngible assets 10 397,060 550,014 947,074 997,490 CURRENT A.SSET&i Debtor% Cash at bank and in hand 16,920 612,610 l6,920 612,610 10,778 531,417 629.530 629,530 542,195 CRF,DITORS Amounts falling due within one ye<ir 12 (138,312) (138,312) {40,605) NF.T CURRF.NT ASSiETS 491,218 491,218 501.590 TOTAL ASSETS LESS CURHEIYT LIAIIILITIE 888,278 550,014 1,438,292 1,499,080 NET A4iSF.TS 8118,278 550,014 1,438,292 1,491),0110 FUNDS Unrcstricted funds Eiidowinent fiind8 13 1188,278 550,014 902,646 $96,434 TOTAL FUNDS 1,438,292 1,499,080 The Lharitable company is entitlcd to cxemption from audit under %eLtion 477 of thc Companies Act 2006 for the period endcd 31 August 2024. 'I'hc members have not rcquired the company to obtain an audit of its financial stat#mcnts for thc period ended 31 AugLlSt 2024 in accordanLe with Section 476 ofthe Companies ALt 2006. Tlie trustees ackJ)owledgc their responsibilities for (a) ensuring that the charitable comp<iny keeps accountingy records that comply with Sections 386 and 387 of the Companies Act 2006 and preparing financial 8t<1tements which gyive a Irue and fair vicw of the stalc of aIYairs of the ch(Iritable comp<iny as at the end of each financial year and of its surpliis or deficii for each financial yedr in accordaiice with thc requirements of Sections 394 and 395 <ind which OtheISe comply wilh the requirements of the Companies Act 2006 1'el(Iting to fLnancial statements, so far as applicable to the charitable company. (b) The financial statement5 were approved by the Board of Trustees and authorised for issue on I l December 2024 and were signed on its behalf by: A C Millei'_ Trnstee The notes form part of these financial statements Page 8
HA WKS ROAD COMMUNITY NURSERY LTD CASH FLOW STATEMEIYT FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 Period 1.4.23 to 31.8.24 Year Ended 31.3.23 Notes Cash flows from operating activities Cash generated from operations 101,651 83,735 Net cash provided by operating activities 101,651 83,735 Cash flows from investing activities Purchase ol'tangible fixed assets Int¢r¢st received (1,742) 27,704 (44.321) 9,122 Net cash provided byl(used in) investing aclivities 25,962 (35,199) Cash flows from financlng aetlvitits Expenditure attribulablc lo cndowment (46,420) {39,370) Net cash used in financing activitie5 (46,420) (39,370) Change in cash cash equlvalent4 in thc reporting period Cash and cash equivalents at the beginning Df the reporting period 81,193 9,166 531,417 522,251 Cxsh and cash equivalcnls al the end uf the reporting period 612,610 531,417 The notes form part of these financial stateineiits Page 9
HAWKS ROAD COMMUNITY NURSERY LTD NOTES TO THE CASH FLOW STATEMENT FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 RECOINCILIATION OF NET EXPFIYDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES Period 1.4.23 to 31.8.24 Year Ended 31.3.23 Net expenditure for the reporting period (as per the Statement of Financial Aetivities) Adjuslments for: Depreciation charges Interest rcceived Expendire attributable to endowment (Increase)/decrease in debturs Incre<ise in creditors (60,788) (2,327) 52.158 (27,704) 46,420 (6,142) 97,707 39,370 {9,122) 39,370 1,861 14,583 Lyet cash provided by operations 101,651 83,735 ANALY.¢*l¢i OF CHAN(:ES IN NET FUNDS At 1.4.23 C¢ish flow At 31.8.24 Net cash Cash dt bank and in hand 531,417 612,()10 531,417 81,193 612,610 Total 531,417 81,193 612,610 The notes fom] part of these financial stateinents Page 10
HAWKS ROAD COMMUNITY NURSERY LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 ACCOUNTING POLICIES Basis of preparing the flnancial statements The financial statements of the charitable conipaiiy, wliich is a public benefit entity linder FRS 102, have been pi'epared iii accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities prepariiig theii. accoiints in accordance wllh the Financial Reporting Staiidard applicable in the UK and Republic of Ircland (FRS 102) (cffective l January 2019),, Financial Reporting Standard 102 'Tlie Financial Repoiling Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. Income All incomc is recognised in the Slalemenl of b iiiancial Activities once the cliarity has ¢ntitl¢m¢nt to the nds, it is prob(ible that the income will be received and the amount can be measured reliably. Cash donations are recognised on receipt. Other donations aro rccognised once Ihe Charily has bccn nolified ot'the donation, unlcss perfonn(InLe Londitions rcquirc dcfci'ral of the ainount. Income lax reLvver(Ible in relation to donations received uiider Gift Aid or dccds of covcnant is rccogni8cd ai ihc time of the donation. Legacies arc rccogniscd on rcceipt or other¥vi5e if the Cliarily ha.4 been notified of an irnpending disti'ibLltioiTr, Ilie amoiint is known, aiid rcccipt is expected. 11-tlic ainounl is nol kiiown, thc legacy is tredted as a conlinL)cnl asscl. Expcnditure I,iabilities are recoLiniscd as cxpcndilurc a8 soon ds there is a le&7al or con5tniclivc ol)lig)alion cominiltingy Ihc cliarity to thtil expenditiire. it i.s probablc tliat a Iransfer of economic benefits will be rcquircd in 8clllcmenl (Ind the amouiil of thc oblig?alion can bc measured reli(ibly. Expcnditurc is accounlcd lor oii an acLriials btisis and has been Llassified under hcadin&8 Ilial aregate all Lost relatcd lo thc catcgory. Whcrc costs cannot be dircctly attribulcd lo particular heddingy5 they have bcen allocated to activities on a bayis Lonsistent with the u8e of resourcc8. Tangible fixed asset8 Dcprccialion is provided at the fol lowinLF annual ratcs in order to write off each asset over its estimatcd useful life. Long leasehold Plant and mÉi¢hinery iorJ/o on rosl and 20/0 on cost 20 % on cost and l 00/0 on Lost Taxatlon 'I'he charity is Qxcinpt from corporation tax on its charitable activities. Fund accounting Unrestricted funds can be used in acrordan¢e with the charitable objectives at the discretion of the trustees. Restricted fiinds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise wlien specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is incliided in the notes to the fiiiancial statemeiits. Hire purcbase and leasing commitments Rentals paid undei. operating leases are ¢hai'ged to the Statement of Financial Activities on a sti-aight line basis over tlie period of the lease. Pension costs aiid other post-retirement benefits The charilable cornpany operates a defined conlribiition pelision scheme. Contribution5 payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. Page 11 continued...
HAWKS ROAD COMMUNITY NURSERY LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 ACCOUNTING POLICIES - continued Going concern At the time of Éipproving the finaiicial statement5, th¢ have a reasonable expect¢itiun that the Charity has adequate resources to continlie in operational existeiice foi. the loreseeable future. Thus the continue to adopt the going concern basis ofaccounting in pr¢paring the finanLial statcmcnts. Charitable funds Unrestricted funds are available for use al Ihc discretion of the in furtheriince of ihcir charitable objectives. Re8triclcd fiinds are subject to spccific condilions by donors as to h(Jw they may be used. The purposcs and uses of the restrictcd funds are set out in the noÉcs lo the financial statements. Endolvment lunds are Slibject to 5peLific conditions by donors that the Lapilal must be maintained by the Charily. Impairment of fixcd assets At each reporting end d(ttc, Ihc Charity reviews ihe carrying ainounls of its tangiblc assets tu determine whcther th¢r¢ 1.% any indicdlion that ihos¢ as8el8 have siiffered an impairni¢nt luss. Ir any such indicalion cxists, the recoverable amount L)f the a88ct is estimated in ordcr to delenninc tlic cxtent of the impairnient loss (if any). Cfish and cash equivalents asli and L<ish CqLIiV(Ilents include Ldsh in hand, deposits held al call with biinks, oihcr short-term liquid invc8tmcnts witli origFjiial malurilics of thre¢ months or less, lind bank ovcrdrafts. Bank ovcrdrafts (irc shown within borrowings in current li¢ibilitics. 'ingncial instruments The Charity has eleLled io apply the provi8ioiis of Section I I 'Ba.sic F'inancial Inslrumenls, and Scclion 12 'Other financial Instruments Issucs, or rKS 102 10 all nf its financial instrLimcnts. Financial instrum¢nl8 arc recogiiised in the Charity's balance sheet when Ihc Charity becomes party to ihc contra¢tuul pi'ovisions of ihc instrument. rinanlial iisscis and liiibililics are offset, wilh thc nel (ImounLq prcscnted in the finaiicial statemenl.s, when therv is a Icg)ally entorccable right to scl off the re¢ogni.scd amounts (Ind thcrc is an int¢iilion lo scltle on a iiel basis or lo realise tlic asset and settle Ihc liability siiniillancously. Basic financial a55ets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaLtion price including) trans(l¢tiL)n costs and are subsequcntly carried at amortised cost using the cffcctive interest methL)d unle.ss the arrangement constitules a linancing transaction, where the triinsaclion is me<isur¢d at the present valiie of the fulure receipts discouiited at a market ralc of interest. Financial a8SCts classified as reL¢ivablc within one yeai. are not amorliscd. Hasic financial liabilities Basic financi(Il liabilities, including? creditors and bank loans are initially recogFnised al Iraiisaclion price un1¢55 Lhe arrangement constitiites a Iinancing transaction, where the debt instriiment is measured at the present value of ihc fiiture payments diSLOLbnted at a niarket rate of interest. Fin(iiiiial liabililics classified as pay¢iblc within one ye. are not amortised. Debi instriiments are siibsequently cai-ried at amorlised cost, using the errcclivc interest rate Method. Trade creditors are obligation5 lo pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-ciirrent liabilities. Trade crcditors are recognised initially al transaction price and subsequently measured at amortised cost using the efteclive interest method. Page 12 continued...
HAWKS ROAD COMMUNITY NURSERY LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD J APRIL 2023 TO 31 AUGUST 2024 ACCOUNTING POLICIES - continued Derecognition of financial liabilities Financial liabilities are derecognised when ihe Charity's contractual obligations expire or are dischai'ged or cancelled. Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Terniination benefits are recognised immediately as an expense when the Charity is demonstrably committed to tenninate the cmployment of an employee or to provide terniination bcnefits. INVESTMENT INCOME Period 1,4.23 Yeai. Ended 31.3.23 31,8.24 Deposit account interest 27,704 1),122 INCOMF, FROM CHARITABLE ACTIVITIES Pcriod 1.4.23 to 31.8.24 Y¢<ll' LiidLd 31.3.23 ALIivity Charitablc activities Charitable aLtivities Charitable activities Nurscry fee5 Sundry inLome QTraiits 325,750 191,682 6,301 346,429 496,014 821,764 544,412 CJranls received, includcd in the abovc, are as follows: Period .4.23 to 31.8.24 Year Ended 31.3.23 Gateshead Council 496,014 34().429 Page 13 Continued...
HA WKS ROAD COMMUNITY NURSERY LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 CHARITABLE ACTIVITIES COSTS Support costs - see note 5 Staff Costs Direct Costs Totals Charitable aLtivitics 599,654 244,308 66,294 910,256 .SUPPORT COSTS Staff Governance costs Tolals Support costs 63,697 2,597 66,294 NET INCOMF,I(EXPF.NDITURF,) Nel incom¢l(cxpcnditure) is stated aflcr chargingl(crediting): Period 1.4.23 to 31.8.24 Year Ended 31.3.23 Dcprecialion - owncd assets Otlicr operalin&T leases Independent ex<imination Losts 52,158 39,370 230 2,208 2,597 TRUSTF,F.4i' REMUNERATION AND BENEFITS Thcrc were no trustees, rcmuneration or other benefits for Ihe period ¢ndcd 31 Augyust 2024 iior for th¢ year ended 31 March 2023. Tru5tees' expenses There were no trustees, expenses paid for the period ended 31 August 2024 nor for the year ended 31 March 2023. STAFF COSTS Period 1.4.23 to 31.8.24 Yeai. Liided 31.3.23 Wagies and salaries Social seciirity costs Other pension costs 621,301 27,802 14,248 391,309 17,198 8,289 663.351 416,796 Page 14 continued...
HAWKS ROAD COMMUNITY NURSERY LTD NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 STAFF COSTS - continued The average monthly number of employees during the period was as follows.. P¥l'l()d 1.4.23 to 31.8.24 Year Ended 31.3.23 Core staff Nursery staff 23 24 25 26 No employees received emoluments in excess of £60,000. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestriclcd rund Endowment fund Total fijnds INCOME AND ENDOWMENTS FROM Charitable activities Charitablc activities 544,412 544,412 Invc8tmenl IrLLorne 9,122 9,122 Totsl 553,534 553,534 EXPEIYDITURF. ON Charit&ble llctivitie Charilable aLtivities 516,491 39,370 555,861 NET INCOMEI(EXPENDITURE) 37,043 (39,370) (2,327) RECONCILIATION OF FUNDS Total ndS brought forward 865,603 635,804 1,501,407 TOTAL FUNDS CARRIED FORWARD 902,646 596,434 1,499,080 Page 15 continued..,
HAWKS ROAD COMMUNITY NURSERY LTD NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 io. TANGIBLE FIXED ASSETS Long leasehold Plant and machinery Totals COST At l April 2023 Additions 1,682,315 56,667 1,742 1,738,982 1,742 At 31 August 2024 1,682,315 58,409 1,740,724 DEPRECIATION At l April 2023 Charge for year 698.343 47,666 43,149 4.492 741,492 52,158 At 31 August 2024 746,009 47,641 793,650 NET BOOK VALUF. At 31 August 2024 936,306 111,768 947,074 At 31 March 2023 983,972 13.518 )97,491) DF.BTORS: AMOUNT¢) FALLING DUE WITHIN ONE YEAR 2024 2023 Other debtor Prepayments 4,131 6,647 16,920 16,920 10,778 12. CREDITORS: AM()UIYTS FALLINC I)UF. WITHIN ()NE YF.AR 2024 2023 Tradc creditors Social scciirity and olhcr taxes Pensions Otlier crcditors Defcrred inlome A¢crucd expenses 3,662 5,504 2,461 4,4511 17,894 4,333 2,783 3,480 1,474 2,474 27,606 2,788 138,312 40,605 13. MOVEMENT IN FUNDS Net movement in funds At 31.8.24 At 1.4.23 Unrestricted funds General fund 902,646 (14,368) 888,278 Endoivment funds Endolvment lld 596,434 (46,420) 550,014 TOTAL FUNDS 1,499,080 (60,788) 1,438,292 Page 16 continiied...
HAWKS ROAD COMMUNITY NURSERY LTD NOTES TO THE FINANCIAL STATEMENTS- eontinued FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 13. MOVEMENT IN FUNDS - continued Net movement in funds, included in the above ar¢ as follows: Incoming rc.%ources Rcsources expended Moveinent in funds Unreslricted lunds General nd 849.468 (863,836} (14,-368) Endowment funds ,ndowTnent fund (46,420) (46,420} TOTAL FUNDS 849.4C)8 (()111,256) (60,788) Comparative8 for movement in funds Nct moveinent in funds At 31.3.23 At 1.4.22 unrestrict funds QTencral fund 865,603 37,043 902,646 F.ndowmeDt funds Endowment fund 635,804 (39,370) 596,434 TOTAL FUNDS 1,501,407 (2,327) 1,499,080 omparative net movement in fiinds, includcd in the above are as follows: Incoming resoiii'ces Rcsources expcndcd Movemcnt An funds Unrestricted funds General tund 553,534 (516,491) 37,043 Endowmcnl funds Endowment fund (39,370) (39,370) TOTAL FUNDS 553,534 (55.5,861) (2,327) F,ndowment funds represent assets which must be held perniancnlly by the chÉirit¢ible company. Income arising on the endowment funds can be used in accordance with the objeLts of the charitable company and is includcd as unrcstricted inLome. Any capital giains arising on the assets form part of ihc fund. Page 17 continued.
HAWKS ROAD COMMUNITY NURSERY LTD NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE PERIOD I APRIL 2023 TO 31 AUGUST 2024 14. RELATED PARTY DISCLOSURES There were no related party transactions for the period ended 31 August 2024. Page 18