KESTREL UNDER FIVES PLAYGROUP CHARITY REGISTRATION NO. 1024231 REPORT AND UNAUDITED ACCOUNTS FOR THE YEAR ENDED 29 FEBRUARY 2024 CONTENTS PAGE Trustees, Report Independent Examinels Report Receipts and Payments Account Statement of Assets and Liabilities KESTREL UNDER FIVES PLAYGROUP REPORT OF THE TRUSTEES The trustees are pleased to present their annual report together with the receipts and payments account of the charity for the year ended 29 February 2024. ADMINISTRATIVE DETAILS Registered name Kestrel Under Fives Playgroup Name by which known Kestrel Under 5s Playgroup Charity registration number 1024231 Principal address St David's Church Newton Close, Lordswood Chatham Kent, ME5 8TR Contact address 42 Birch Drive Lordswood Chatham Kent, ME5 8YU Trustees Lisa Humphries Molly Johnson Helen Shepherd Stacey Brooker Kelly Budd Carolyn Burch Samantha Carter Dawn Holloway Ashley Oakes Abigail Simmons Joanne Snell Samantha Swain Sophie Vitorino-clack Chair appointed 15 January 2024 Secretary appointed 27 June 2023 Treasurer appointed 3 October 2023 appointed 3 October 2023 - appointed 7 November 2023 - appointed 27 June 2023 appointed 15 January 2024 resigned 27 June 2023 Independent examiner R C Abel, FCA, CTA Aggarwal & Co Lld 5 London Road Rainham, Gillingham Kent, ME8 7RG Bankers HSBC 115 Week Street Maidstone Kent, ME14 1QW GOVERNANCE Governin Document The charity is an unincorporated associalion governed by ils constitution adopted 29 October 2014. It follows the 2011 model constitution prepared by the Pre-school Learning Alliance. Trustees The trustees who sewed al any time during the year are set out above. KESTREL UNDER FIVES PLAYGROUP REPORT OF THE TRUSTEES ointment of Trustees The trustees, described in the governing document as Committee members, are elected for one year at the annual general meeting. Retiring trustees are eligible for re-election unless they have already served on the Committee in any capacity for ten consecutive years. At least 60 per cent of the Committee rnembers shall at the time of Iheir election be parents or guardians of children who attend any groups run by the charity. OBJECTS The objects of the playgroup include the promotion of the care, safety, education, health and wellbeing of children, and the promotion of parentallcarer involvement in their early education. These objectives are Iwo- to put the child first always to ensure that no individual faces barriers lo developing skills., and to empower parents to be involved with the development of their children. and may be summarised as follows: (a) to provide a child-friendly environment that is safe, secure, caring and stimulating. (b> to enhance the intellectual development and education of children through play, by providing opportunities to explore literacy and develop verbal skills in their everyday play, to participate and experiment with both large and fine motor skills, to be creative. and to engage with numbers, colours and shapes to stimulate their Gognitive skills., (c) to promote and encourage children to develop self-confidence and self-esteem and to feel valued as an individual., (d) to promote children's social, emotional and physical development through individual, parallel and cooperative play and structured activities, and to prepare them for a smooth transition from playgroup to school by encouraging personal skills development, which will help Ihem become more independent., {e) to observe and plan for each child's progress regularly- (Q to honour parents'lcarers, trust that all staff will nurture their children and give them qualily care. (g) to work within the guidelines of the Early Years Foundation slage and to follow the guidelines and requirements of the registering bodies., (h) to work as partners with parenlslcarers and offer flexibility that allows each child's individual needs to be met,. and (i) to make parentslcarers feel welcome and provide an atmosphere where both children and adults feel happy and comforlable. Public Benefit In accordance with section 17(5) of the Charities Act 2011, the trustees have had due regard to the guidance published by the Charity Commission on the requirement that the objectives and work undertaken by the charity are in line with charitable objects and do provide benefit for the public. ACTIVITIES AND ACHIEVEMENTS Once again, this year the playgroup's key achievement has been to navigate the ongoing financial pressures we face in an environment where many other long-established Early Years providers have been forced to close their doors. Our charitable status undoubtedly serves us well in this arena, sirice our viability is not determined by profit but rather by remaining solvent with no delrimenl to the quality of childcare we provide. We, like most other organisations, have faced significant increases in running costs, including two rent increases within twelve months, bul have made our best efforts to economise wherever possible lo ensure playgroup's survival without compromising our standards of care. KESTREL UNDER FIVES PLAYGROUP REPORT OF THE TRUSTEES At the start of the academic year we had concerns regarding our longevity. However, this was due in part to the way the local authority pays our funding.. our interim monthly payments were provisionally calGulated on the previous year's figures although we started the year with more children who were eligible for funding than the previous year. This was rectified after we were able to submit our official headcount figures. In November we received the outstanding balance and monthly payments increased by £4,000, both of which returned us to a more slable financial position. We have succeeded in continuing to provide the children in our care wilh a secure, happy, caring and stimulating environment where they are able to develop intellectually, emotionally and socially, and to support their families where needed in any way we can. Another notable achievement was being awarded 'Good' in all areas following an OFSTED inspection on 8th February. We owe a huge debt of gratitude to the dedication and hard work of all staff, without whom our survival and this outcome would not have been possible. We have had several slaff Ghanges throughout the year. We said goodbye to two members of slaff at the end of summer term.. one much loved Auntie (then Lunch Club assistanl) who retired after many years of outstanding service in both roles, and another who left to prepare for a happy new addition to her family. Another long-serving and highly experienced Auntie reduced her hours in October due to family circumstances, but happily we continue to benefit from her experience and skills for most of the week. We welcomed three new Lunch Club assistantslcover reliefs in September, two of whom stepped up in November to provide one-to-one SEN support also. Our first venture into the government's Apprenticeship Scheme last year resulted in both members of staff successfully achieving their qualification on-the-job, while another staff member achieved her qualification by studying independently outside of the workplace, and we congratulate them all on their hard work. Unfortunately, the apprenticeship scheme proved problematic administratively and added quite significantly to the workload of one of our managers,. consequently, we are unlikely to sign up to this scheme again in its current form. Sadly, our olher manager, who originally conlracted Covid pre- lockdownlvaccine rollout, succumbed again and was seriously ill for almost three months., thankfully, she was able to return lo work at the beginning of January and continues to recover well. Fifteen staff members completed Level 2 Food Hygiene and Safely training courses, some as a refresher, some as new members of staff, Iwo undertook Paediatric First Aid courses and five completed L2 Advanced Safeguarding. Additionally, three of our senior members of staff completed their refresher Level 3 Designated Safeguarding Lead course. All these courses were funded by the playgroup al a cost of £985. Our local repulation for exceplionally strong SEN provision was reflected once again in an increasing need this year for extra support for some children, possibly still being fuelled by the major disruplion to the crucial developmental years of early childhood during the pandemic. Whatever the reason, our SEN co-ordinator responded quickly and conlinues to work hard to secure extra funding for one-to-one support as part of playgroup's efforts to seek out as much additional funding to enable staff to continue to give our children the developmental support all children deserve. We currently have four members of staff dedicated to supporting five children one-lo-one for 47.5 hours per week and have two additional SEN funding requests being processed. The truslees are concerned that our capability to supporl further SEN children may be limited by the funding for this support however, which is currently £7.70 per hour and which does not cover the wages of these staff, even al the current Minimum Wage Rate. This is under review by the Committee. Our Committee led fundraising efforts this year have raised £1,664 and we are, as always, extremely grateful for every penny contributed, particularly in view of the Gonlinuing strain on household incomes in the current economic climate. A new addition to our established fund-raising events this year was a Successful pre- Christmas Toy Sale, which raised £145; unsold toys were donaled to other local charities. As well as Ihe usual Easter and Christmas presents, parties, replacement of old 'minor' equipment and craft supplies, some of the funds raised were spent on a Coronation party and commemorative presents for every child. A much more significant amount has just been spent on a set of new outdoor gym equipment, which we hope the children will enjoy for many years to come. KESTREL UNDER FIVES PLAYGROUP REPORT OF THE TRUSTEES Sincere thanks are also due to all Ihose families who support our Voluntary Donations initiative and 'Helping Hands, scheme, as these funds and donations of small consumables that the playgroup needs on an ongoing basis not only allow us to continue to supply healthy snacks for Ihe children in the face of ever rising costs but also help to offset some of the increased expenditure on cleaning and hygiene supplies. The income and donations we receive from these schemes play a vital role in allowing us to encourage our children to make healthy choices and ensure a safe and hygienic environment in which they can prosper. Income from the Voluntary Donations initiative was initially revitalised in September last year, after 8 noticeable decline. Efforts were made to bring to the attention of those parents and carers who feel able to contribute the enormous benefit to the children of this scheme. There was a drop off last term, but this may be because some parents donate ilems to our Helping Hands Scheme rather than make a financial contribution. It should be said that some parenlslcarers have continued to donate by making contributions by direct bank transfer rather than in person, for which we are most grateful - all children benefit from the donations made by those families who do so. A major part of playgroup's ethos is that no child should be disadvanlaged by their family's financial circumstances and so we truly appreciate the generosity of all donations received, be they monetary or items. The Minimum Wage Rate increased by 9.70/0 in April 2023, and a decision to raise our session and lunch club fees by 50p and 25p respeclively for the 2023-2024 academic year was made to lry lo help offset this in some small part, whilst striving also to keep qualily childcare accessible to local families. Although a 2 % reduction in Nl basic rate for employees came inlo force in January, the employer rate remained at 13.8 %. With a further increase of 9.8 % on Ihe MWR announced for April 2024 and with the prospect of the additional pension and Nl costs associated with MWR, we already know that we shall continue to face financial challenges in the coming year. We have not yet been informed of the increase in the Local Authorily Funded Hours rates for April but, based on previous years, il is very unlikely that they will come close to matching the percentage cost increases we face. We shall have more children leaving than remaining at the end of the aGademic year. extra sessions will be offered to current parentslcarers first and we currently have fifteen children on the waiting lisl. It is difficult to predict the impact the new legislation rolling oul from April regarding funding for 2-year-olds with working parents will have on playgroup, but this may fuel demand for places. and we hope an increase in funding rates will accompany any extra demand. The trustees are currently considering introducing a small Gonsumables charge per session if the disparity between funding rates and running costs widens even further. Such contribution is usual practice in other local settings. Finally, and as always, we wholeheartedly thank all parents, carers and staff for their continued support. FINANCIAL REVIEW Review of the Financial Position The financial position is set out on pages 6 and 7. Receipts increased from £164,887 to £187,924. Payments increased from £158,329 to £178,267. This is for the reasons mentioned above. The result is net receipts of £9,657 compared to £6,558 in the previous year. Cash funds at the end of the year amount to £84,307. Reserves Polic The trustees have considered the level of reseNes appropriate for the charity and concluded that they should have sufficient funds lo enable expenses to be met for a normal three months should there be a delay or reduction in receiving income. The amount required is approximately £45,000. Therefore, the funds held are adequate at present. Risks and Uncertainties The trustees have considered the principal risks and uncertainties facing the charity, which they have assessed as.. loss of income and increased wage and pension costs without any increase in funding from the governmenl. and loss of income due to unexpected non-availability of rented premises. KESTREL UNDER FIVES PLAYGROUP REPORT OF THE TRUSTEES Trustees, Res onsibilities The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepled Accounting Practice). The trustees are responsible for keeping proper accounling records that disclose with reasonable accuracy at any time the financial position of the charity and enable them lo ensure that the financial slatements comply with the Charities Act 2011, the Charity (Accounts and Reporls) Regulalions and the provisions of the constitution. They are also responsible for safeguarding the assels of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the trustees on 4 June 2024 and signed on their behalf H Shepherd, treasurer INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF KESTREL UNDER FIVES PLAYGROUP I report to the trustees on my examination of the receipts and payments account of Kestrel Under Fives Playgroup { the Charity ) for the year ended29 February 2024, which are set oul on pages 6 to 7. Res onsibilities and basis of re ort As the charily trustees of the Charity, you are responsible for the preparation of the accounts in accordance with the requirements of Ihe Charities Act 2011 ("the Act ). I report in respect of my examination of the Trustee's acGounls carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commissioner under section 145(5){b) of the Act. Inde endent examiner's statement I have completed my examinalion. I confirm that no material matlers have come to my attention in connection with the examination giving me cause to believe Ihat in any material respect.. accounting records were not kepl in respect of Ihe Charity as required by section 130 of the Act. or the accounts do not accord with those records. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the aGGounts to be reached. R C Abel, FCA, CTA Aggarwal & Co Chartered Accountants 5 London Road Rainham Gillingham, ME8 7RG 10 June 2024 KESTREL UNDER FIVES PLAYGROUP RECEIPTS AND PAYMENTS ACCOUNT FOR THE YEAR ENDED 29 FEBRUARY 2024 2024 2023 RECEIPTS Receipts from charitable activities Voucher payments Fees receivable Lunch Club fees SEN income EYPP Fundraising Voluntary donations Other re￿iptS 134,399 21,634 10,450 16,962 2,235 1,664 543 37 108,992 31,182 9,335 11,117 915 1,496 858 992 TOTAL RECEIPTS 187,924 164,887 PAYMENTS Charitable activities Wages and salaries Social security costs Employer's conlribulions to pension scheme 144,680 6,216 4,596 155,492 11,522 2,061 1,493 985 574 555 60 949 600 886 1,728 124,195 6,227 3,918 134,340 12,476 2,167 1,452 1,508 761 726 60 775 600 733 2,016 415 158,029 Hall and garage rent Supplies Insurance, Ofsted and data fees Course fees Telephone, dongle and photos Petty cash Bank charges Accounting software Independent examiner's fees Equipmenvspecial events Medway Early Years Miscellaneous expenses 176,914 Purchase of equipment 1,353 300 TOTAL PAYMENTS 178.267 158,329 NET RECEIPTS 9.657 6,558 Cash funds at the beginning of the year 74.650 68,092 CASH FUNDS AT THE END OF THE YEAR 84,307 74,650 KESTREL UNDER FIVES PLAYGROUP STATEMENT OF ASSETS AND LIABILITIES AT 29 FEBRUARY 2024 2024 2023 UNRESTRICTED CASH FUNDS Cash at HSBC bank Cash in hand 84,253 54 74,591 59 84,307 74,650 ASSETS RETAINED FOR THE CHARITY'S OWN USE - Various play equipment LIABILITIES - Independent examiner's fee NOTES TO THE ACCOUNT 1 Statutor Information Kestrel Under Fives Playgroup is registered under the Charities Act 2011. The Charity's registered number and registered office address can be found within the Trustees, Report. The presentation currency of the financial statements is the Pound Sterling {£). 2 Accountin Policies (a) Basis of accountin The accounts have been prepared on the receipts and payments basis under Ihe historical cost convention and in accordance with the Charities Act 2011 and the Charities Statement of Recommended Practice (FRS 102). (b) Funds structure All funds are unrestricted income funds. 3 Trustee Remuneration The charity trustees were not paid or reimbursed expenses during the year and no charily trustee received any emolument or payment for professional or other services. 4 Taxation The charity is a registered charity and no provision is considered necessary for taxation. Approved by the truslees on 24 May 2024 and signed on their behalf H Shepherd, treasurer