Charity nUm￿r 1016988 Chard NNI Trustees, Report and Accounts 31 August 2023 Chard NNI Report and accounts Contenls Pagè Trustees, Report Independent Examinerfs Report Stsiemenl of Financial Acbvilies Balance Sheel Notes to the Aceounts 13 Chard NNI Trustees. Annual Report for the year ended 31 August 2023 The Trustees present their re[￿￿1 and accounts for the year ended 31 August 2023. ReferencÈ and administrative details The legal name of the charity is Chard NNI. The chartty is registered in England and Wales with charity number 1016988. The Charity is also knowtF as Chard NeighbourlNJod Nursery and Schools Out, Chard Children's Centre and aaie House. The charity is operaled under its Gonstitution daled 2 November 1962. amended 7 February 2000, 12 February 2003, 7 Aplll 2003 and 16 July 2013. Al Ihe Special General Meeting held on 25 September 2008 il was agreed Ihal the date of the AGM be altered (subject lo charity Commisston approval} trj the Spring. The T￿￿te8S arè all indimduals. The contact details are as follows: Principal operating address= Clare House Miiifield Chard TA20 2DA Telephone number.. Email address.. Website.. 01460 62367 admin@darehouse.org.uk www.clarehwse.org.uk Trusteés The Trustees in office during the year ended 31 August 2023 and on the dale this report was approved were.. Marie Baker (Chairl Wendy Toy IViGe chairl Èlected 2911112023 Wayne Luckett (Treasurer) Amanda Mason ISe¢relaryl elected 2911112023 Cydney Issacs ISecretary} resigned 2911112023 Matthew Constance resigned 2911112023 Objectives and activities of the charity Ihe charivs objectives are lo enhance the development and education of chijdren primarily undér ststutory s¢hool age, by encouraging parents lo understand and provide for the needs of their children Ihrough eommunity groups. The charity provides day care and education in Chard to thildren aged O to 5 years. 11 also provides before and after school and holiday care for children aged 5 10 14 years. As part of the inforination sharing initiative put t{￿eLher by the Children and Young People's Services in SoFnersel there are now even closer links with other semces for children. The trustees wll be ensuring Ihal childcare of a high standard continues to be provided and make any necessary improvements lo the seTvice il offers. This is done by constant monitoring and evaluation lo ensure the charity adapts to the changing needs of the children and familEs who attend. There is a growing ethnic population in Chard and the charity is working hard to meet their parbcular needs. a large proportion of these are Portuguese aHd Polish along with a mixture of olher nationalities- the staff work wth outside agencies io ensure that all their indimdual needs are mel. There is continual staff Iraining and a develOp￿ent programme ensures that the staff are up lo dale on the EYFS principles and all the latest thinking and legislation which in lum ensures better childcare and continuing high standards. Charil NNI Trustees. Annual Report for the year ended 31 August 2023 A¢hievements and parfomiance This has ￿en a very busy year ￿th all spa￿8 being al a premium wilh the baby room being fully booked until September 2025. Demand which has alwa￿ been high has sunificanuy increased with the governmenfs new funding for all ages. The Nursery continues lo recetve considerable support from Somerset County Council by way of grants received. Contributions for the year amounted to £178.326. In August the setting was inspected by OFSTED and after a very thomugh inspection received a glowing report. Structure. governance and management The Trustees delegate the day lo day running of the setting to Ihe fftanager. Jayne Windsor, who oversees the childcare provided by the room managers and nursery practitioners, and Janet Woodbury. who provides adminislralive support. Thè Trustees meel regulady throughout Ihe year lo discuss issues affecting the chiklcare piovision and the use of the chatiws premises and they agree on the action lo be taken. The Childcare Manager attends the cornrnittee meetings to report matters uf importance to the Trustees and discuss the issues that arise. The chairperson and treasurer are also required lo be authorised signatories for bankirtg purposes. New trustees are asked ID read the National Standards for Day Care so that Ihey are fully conversant with the operational needs and restrictions of the charity. this is baGked up by the charFty's own operational policies and procedures. They are also made aware of the need for strict confidentiality within the group and have lo sign leller agreeing to CL)nfidentiality of infomiation within the charity- New trustees also have the chance to read the notes from the Committee traininq by Somèrset County Council that prev￿U5 members have atiended. The management committee has Conducted its own review of the major risks to whith the charty is exposed and S￿leMS h2ve been eslablished to mitigate those risk5. Inlemal risks are minimised by the implementation of procedures for aulhorisation of all transactions and projects and to ensure consislenl quality of delwery for all operational aspects of the chaitty- These pr(￿dureS are pericxlically reviewed lo ensure they still meet the needs of the charity. The charitys banker5 are HSBC. 17 North Street. Taunton TA1 1NA Chard NNI Trustee5' Annual Report for thè year ended 31 August 2023 Financial review The financial posthon ol Ihe charity 8131 August 2023 and comparatives for Ihe prior period, as more fully detailed in the a¢¢ounls, can be summarised as follows.. 2023 2022 Nel incomel(expendilure) 110.3991 131,8691 Unrestricted revenue funds available for Ihe general purposes of the chzrity 58,046 61,362 The charity remain5 dependent on grants and fees for the se￿￿$ thal il provides. Due to the improvements to financial procèdures instigated and increasing numbers the charty is now building up reserves in line wth its ReseNes Policy meaning that thè setting has money in the bank as a fall back for the Autumn term when numbets of children hislori¢ally are at the lowest point of the year which equates lo lower income. It is anlicipaled that this trend wll continue. The Trustees believe that il is appropriate lo continue lo prepare the accounts on 8 going concem basis. Statement of Trustees. TesponsibilttiÈs The Trustees are responsible for preparing Ihe Trustees. Report and the accDunts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generalty A(xepted Accounting Practice). The law applicable to charities in England and Wales requires Trustees to prepare accounts for each financi81 year which give a INe and fair vtew of the slate of affairs of the chartty and of the incoming resources of the charity for that year. In preparing these accounts, the Trustees are required to- Select suitsble accounting policies and then apply them ¢))nsistty. Observe the methc*ls and principles in Charities SORP.. Make judgements and estimates Ihat are reasonable and prudent- Stale whether applicable accounting standards have been fotbwed. subject to any matarial departures disclosed and explained in the accounts., and Prepare the ac¢ounls on the going concem basi8 unless il is appropriate lo presume that the charity will continue in operation. The Trustees are responsible for the mainlenance and irbtegrity of the charity and financial information included on the chariws website. Legislation in the United ￿ngdoM goveming the preparation and dissèmination of financial statements may differ from legislatton in olherjurisdietrons. This report was approved by the board on 27.11.i..l.a4- 2nd signed on its behalf. Mrs Marie Baker {chairperson> Trustee Chard NNI Report of the independent examiner to the Trustees of charity on the accounts for the year ended 31 August 2023 I report on the financial statements of Chard NNI on pages 5 to 13 for the year ended 31 ALTrgust 2023. Respective responsibilities of Trustees and examiner As described on page 3 the charivs Twstees are responsible for the preparation of tho financial ststements. Thè Truslees consider that the audit requirement of secbon 144{11 of the Chartties Act 2011 does not apply, and that there is no requirement in the conslilLtb"on documenl of the charity for the conducting of an audit. As a consequence. the TrLJslees have elected that Ihe financial stalements be subject to independenl examinalTron. 11 is my responsibility lo.. a} examine the accounts under section 145 of the Charities Actr. bl follow the procedures in the General Directions given by the Charlty Commission under sectlon 145{5llb) of the Charities Act., and., cl stale whether particular matters have ￿me lo my attention. Ba$1$ of independent examinerfs statement My examination was carried out in accordance Nwth general Directions given by the Charity Commission. examination indudes a review of the aGcounting records kept by the ¢harity and a Comparison of the accounts presented with those records. 11 also includes consideration of any unusual ttèms or disclosures in the accounts, and se&king explanations from the Trustees concerning any such matters. The procedures undertaken do rkot provide all the evidence that would be required in an audit. and rx>nsequenUy no opinion is given as lo whether the acco¢Jnts present a 'true and fair, view and the report is limited to Ihose matters sel Imrt in the ststemenl below. Independent examiner's statement In connection with my examination. no material matter has come to my attention which gives me cause to believe that, in any material respect.. the accounting records were nol kepl in accordance with section 130 of the Charities Act 2011" or the accounts did not accord with the accounting records: or the accounts did nol Gownply wilh the applicable requ1￿Ments conceming the form and content of accounts sel out in the Charities {Ac¢ounts and Reports) Regulations 2008 other than any requirement that the accounts give a'true and lair, view which is not a matter considered part of an independent examination I have no concems and have come across no Olher matters in connection with the examination lo which attention should be drdwn in order lo enaNe a proper understsnding of the accounts lo be reached. Elizabeth Coleman FCCA Old Bank Building East Slregt Ilminsler TA19 OAJ Dated.. 22 November 2024 Chard NNI Statement of Financial Activities forthe year ended 31 August 2023 Unresfrfded Restrictsd Totsl tunds Total funds funds funds 2023 2022 Noto Incomlng resour¢¥s Income from charitable activibes Income from investments Incorne from other resources 391,265 646 7.207 391.765 646 7.207 336,019 14 31.979 Total income 399.118 3￿,618 368,012 Expenditure Cost of raising funds Expendiiure on charitable actiwties Govemanee costs 406.425 3.092 406,925 3,092 396,122 3.759 Total expenditure 409.517 410,017 399,881 Net expenditure for the year 110,399) 110.3991 131.8691 Transfers bebNeen funds 17 7.083 (7.0831 Net movernent in funds {3.3161 (7.0831 110.399} 131,8691 Reconciliation of funds: To181 funds brought forward un￿$t￿Cted R8stiicled 61.362 61.362 7,083 69.031 31.283 7.083 Total funds catTied forward 58,046 58,046 68.445 Chard NNI Balance Sheet as at 31 August 2023 Vnrestrictod R•stsictad lunds Totsl fund5 2Tr23 Total funds 2022 Fixed assets Tangible assets 10 5,382 5.382 7,376 Current assets Debtors Cash at bank and in hand 11 12 7.395 67.036 74.431 7.395 67.036 74.431 9.706 64,401 74,107 Llabllities Creditors." amounts falling due wlhin one year Net current assets 13 21,767) 52,664 121,767) 52.664 13.0381 61.069 Tot￿ assets less current liabilitlos 58,046 58.046 68.445 Total net assets of the Charity 58.046 58,046 68,M5 Represènted by. Unre5tricled funds ReSt￿ted funds 58,046 58.IM6 61.362 7,083 16 Totsl charity funds 58.046 58,046 68.445 Mrs Marie Baker (chairperson) Trustee Approved by the board of trust￿ on g.Tr.l.J.i..1.3.W Chard NNI Note5 to the Accounts for the year ended 31 August 2023 1 Basis of accounting The accounts hav& been prepared under ihe historical cost convention and in a￿)rdance wth the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 updated in October 2018 and with the Charities Act 2011. 2 Accountlng pollcles Income Income is included in the Statement of Financial Actiwbes (SOFA) when: the charity becornes entided to Ihe resources". it is more likely than not that the truslees ￿11 receive the resourc*s" thè monetary value be measured with SuffI￿ent rdiability- There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102. Grants and donations are included in the SOFA when received. Grants in respeot ol leasehold buildings have been induded in a restricted fund as required by the temis and conditions of the I￿al government and other agencies. Fees receivable and charges for services and use of the premises are accounted for in the period in which the services ara received. Expendlturn and liabilities Liabilities are recognised where it is more likely than not that there is a legal or constnjctive obligation committing the charity to pay out resources and the awnount of the obligation can be measured wth reasonable certainty. Charitable activili@s include expenditure assoGÈated wth Ihè education of children. Govemance costs include those incuffed in governance of the charity and are primarily associated with consliulional and statutory rèquirements. Rentals payable under operating leases are charged againsl income on a straight line basis over the lease term. Tangible fixed ass8ts Tangible fixed assets are measured at cost less accumulative depreciation and any accumLJlative impairmènt losses. Depreciation is provided on all tangible fixed assets. other than freehotd land. al rales Galculaled lo write off the cost, less eslimaled residual value, of each asset evenly over rts expected useful lrfe. as fdlows.. Leasehold property Fixtures. fitttngs and equipment Over the term of the lease 1 to 4 years All assets Costing more Ihan £200 are capitalised and are included al cost in the financial slalements. Chard NNI Notes to the Accounts for the year ended 31 August 2023 Leasehold property is depreciated over the remaining life of the lease from the date the propety works were cornpleled. The lease was originally for a pertod of 28 years. The lease commeftced before work began on the Gonslruction of the new building and eight years had elapsed by Ihe time Ihe construction was eompleted. The Trustees have carried out an impairement reMew of the asset under FRS102 and consider that the carrwng values shown in the accounts are at least equal to the recoverable amwnt. Dgbtors Debtors {in¢luding trade debtors and loans reCe￿able) are measured on In￿al recognition al settlemenl amount after any trade discounts or amounl advanced by the tharity. Subsequently, they are measured al the cash or other consideration expected lo be receNed. Creditors Short term creditors are measuted at transaction prKe {thich is usually the Invol￿ pricel. Loans and other financial liabilities are initially reeognised al transaction price nel of any transaction costs and subs8quendy measured at amortised Cost determined using the effective interest method. Taxation A5 a registered chaTty Chard NNI is generalty exempt from inci)me lax and capital gains tax. but not value added lax {VATI. Irrecoverable VAT is included in the costs of those items upon which it has been incurred. Penslons Contributions lo defined contribution plans are expensed in the period to whith they relate. Funds The restricted fund Gomprises grants to be used for a speufic pu[p(￿e as laid down by the grantor. Expenditur8 which meets the criteria is charged to the fund. The unrestricted fund represents funds which the Trustees are tr￿ to use in accordance with the Ghari12ble objectivès. Chard NNI Notes to the Accounts for the year ended 31 August 2023 3 Analysis of income Restricted Total hJnds 20rJ Total lurHIs funds funds 2022 Income from charitable activities Grants recerved School lees and registrations received Donati¢￿S received 178,826 212,439 179,326 212,439 171,134 164.781 104 338,019 391.265 soo 391.765 Income from investments Interest re￿iVed on bank a¢¢ount 646 646 14 14 Income Irom other resources Room hire and seryice charges Insurance claim for loss of revenue during Covid 7.207 7.207 7,479 24.500 31,979 7.207 7.207 Total income 399.118 500 399.618 368,012 4 Analysis of receipts of government grants 2023 2022 Sornerset County Council- Early Years funding Sornersel County Council- apprenttceship funding 178.826 500 169.134 2.000 179.326 171,134 5 Donated goods, facilities and services Any donated goods. faciliti8s or serVi￿S are recorded in the accounts at fair value. Chard NNI Notes to the Accounts for the year ended 31 Augusl 2023 6 Analysis of expendlture Unrestsi¢ted fvnds Restrictod funth Total fund5 Total funds 2023 2022 Cost of raising funds Expenditure on charitable a¢tivilies Staff cosls Wages and salaries Pensions Employerfs Nl 318.109 6.113 18.726 342,948 500 318.609 6,113 18.726 343,448 291.009 5,273 14,432 310,714 Other CDsts Play maleriats Equipment @xpensed Groceries and hot meals Repairs and mainlenan Rent Rates and water Insurance Light and heat Cleaning and waste disposal Subscriptions Staff training and welfare Sothvare stationery and printing Telephone and internet Bank Gharges Sundry expenses Depreciation Donations Bad debts written ott Old petty cash balancè written off 4.273 55 12.763 8.660 4.273 4.188 130 5.752 4,496 50 2,370 6,346 6,137 3,874 526 530 1,866 3,411 666 138 2,097 36,946 11)0 2,249 3,536 85,408 11763 8,660 971 7,950 9.293 3,623 971 7,950 9.293 3.623 484 2.670 2.562 4.563 744 175 1.798 2.843 2.670 2.562 744 175 1.798 2.843 63,477 63,477 Over811 expendilure on charitable activiti.es 406.425 500 406,925 396,122 Governance cost$ Independent exaTnination fees Accounlan¢y fees Overaccrual for previous yeats Consultancy fees Other legal and professional costs 650 1.460 {950} 650 1.460 {950} 600 1,400 1,469 290 3,759 1.932 3,092 1.932 3.092 Total expenditure 409.517 500 410,017 399,881 10 Chard NNI Nole5 to the Accounts for the year ended 31 August 2023 7 Extraordinary items 2023 2022 Old cash balance written off 2022 During the accounts preparalion a revi￿ was made of petty cash re(xJrded as an asset in the accounting records. No petty cash is kept by the tharity. 11 wa5 concluded that historical transactions had been incorrecuy recorded as assets rather than as expenses. To corwl the position going forward the balan￿ was written off lo expenses last year. 3,536 3,536 8 Fees for examination of the a¢¢ounts 2023 2022 Independent examine¢s fees paid lo the examinefs finn 650 600 650 600 9 Employees 2023 Number 2022 Number Average number of persons employed bythe charity 17 16 10 Tangible fLxed as$ets Fixtures, frttings & equipment Leasehold buildings Total Cost At 1 September 2022 Additions Al 31 August 2023 759.331 60,536 819,867 759.331 61.385 820.716 Depraciation Al I September 2022 Charge for the year At 31 August 2[123 754.740 1.152 755,892 57.751 1.691 59,442 812,491 2,843 815.334 Net book valuè Al 31 August 2023 3,439 1,943 5,382 Al 31 August 2022 4,591 2.785 7,376 Chard NNI Notes to the Accounts for the year ended 31 August 2023 11 Dèbtors 2023 2022 Trade debtors Prepayrnents and accrued income 6.223 1,172 7,39S 8,190 1,516 9,706 12 Cash at bank and in hand 2023 2022 Cash at bank and in hand 67,036 67,036 64,401 64,401 13 Creditors.. amounts falling due within one year 2023 2022 Trade Creditors Accruals and defèrred income Taxation and social security 2,642 14,082 314 8,355 4,369 13,038 21,767 14 Other flnancial commitments 2023 2022 Al 31 August 2023 the charity had annual commilments under nonrfancefiabfe operating leases as follows= Land and buildings.. Equipment= expiry dale over 5 years @xpiry dale wthin 1 year expiry date within 2-5 years expiry dale within 1 year expiry dale wlhin 2-5 years 711 2,488 917 1.815 Insurance protection.. 189 Total future minimum payThenls under non-cancellable operating leases 4,116 2,004 15 Contingent liabillties There were ￿rtaiN circumstsnces under which Ihe grant received from the National Opportunities Fund would have had lo be repaid. This gmnt amounted to £110.000 and was speafically for the cost of the new school building. Circumstsnces where this grant would have lo be repaid included the disposal of the building. or the thange of ils use. This c¢)ndilion applied for 20 years after completion of the building works, Ihèrefore until 2023. 12 Chard NNI Notes to the Accounts for the year ended 31 August 2023 16 Restricted funds B81ance at 1 Saptsmber 2022 IrtCDrnirtg resources Expenditur• Balance at 31 August 2023 Transfers Buikjing fund OLJldoor play aroa Apprenl'ceship funding 7.083 {7.0831 1500 5001 7.083 500 7,083) The building fund had lo be used in the construction of the nursery building. This has now been depreciated fully over Ils useful èconomic lrfe. The pram shelter fuTrd was used in the construction of a shelter attached lo Ihe nursery building. This has been depteciated fully over its useful economic lrfe. The outdoor play area fund relates lo money received from SomeTset County Council and the Ctroperalive. to build an outdoor play area for the children. This has now been deprecialed fully over its useful economic life. 17 Fund transfers 2023 2022 Transfer from restricted fund (note 16) Transfer lo unrestricted fund (7,0831 7.083 During the preparation of these accounts il became apparent that reStr￿ted depreciation had be@n incorreetly calculated in previous years. To ensure that the Gorrecl positton is refleGted at the year end. a transfer of £7083 has been made Irom restricted funds to un￿tricted funds. 18 Related party and trustee trdnsactions No TNslees (nor any persons connected with them) received any remuneration or had expenses reimbursed during the year.