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2024-03-31-accounts

CHARITY REGISTRATION NUMBER: 1025440

Mes Bach - Little Acorns Child Care

Unaudited Financial Statements

31 March 2024

Mes Bach - Little Acorns Child Care

Financial Statements

Year ended 31 March 2024

Page
Trustees' annual report 1
Independent examiner's report to the trustees 6
Statement of financial activities 7
Statement of financial position 8
Notes to the financial statements 9

Mes Bach - Little Acorns Child Care

Trustees' Annual Report

Year ended 31 March 2024

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2024.

Reference and administrative details

Registered charity name Mes Bach - Little Acorns Child Care Charity registration number 1025440 Principal office Brongwinau Comins Coch Ceredigion SY23 3BQ The trustees Aloysius Igboekwu - Chair. Mark Longman - Treasurer Frances Jardine – Secretary (resigned on 18 July 2023)

1

Mes Bach - Little Acorns Child Care

Trustees' Annual Report

Year ended 31 March 2024

Objectives and Activities

The purposes of the charity

The main purpose of Mes Bach – Little Acorns Childcare is to enhance the development and education of children and provide a safe environment for them. We achieve this purpose by providing Nursery care for children aged 2 to 4 years and providing After-school and Holiday club childcare for primary school aged children. As a community childcare charity, we aim to provide good quality and affordable daycare for our community and support children to feel valued, safe, happy, and confident in a caring and welcoming environment. Mes Bach – Little Acorns Childcare aims to provide public benefit to members of our community and their families.

The main activities in relation to those purposes for the public benefit

During the 2023/24 financial year, the trustees continued to focus on the activities that will benefit our member families and the wider community. These activities fully aligned with the objects of Mes Bach-Little Acorns Childcare. The activities were delivered through our nursery, after-school club, and holiday club services.

The Nursery

Our nursery services continued to offer half and full-day childcare services and 3-year education services (up to July 2023) to children aged two to four. The suspension (June 2022) and subsequent termination (April 2023) of the 3/4-year-olds part-time education funding by the local education authority caused financial difficulties for both the nursery service and the wider services offered by Mes Bach. In order to lessen the negative impact of the termination of the part-time education funding on children attending Mes Bach and to continue with the ethos of Mes Bach, the trustees made a decision to continue to offer free part-time education to eligible 3/4-year-old children in Mes Bach. The trustees had to cover the costs of the free part-time education from our reserves (as per the purposes of the charity). This service was, however, stopped at the end of the 2022/2023 academic year as Mes Bach had run out of funds to continue to offer it free.

The After-school Club

The after-school club service, which was run by our dedicated and caring team, offered out-ofschool hours childcare services solely for the pupils of Ysgol Comins Coch Community Primary School. Ysgol Comins Coch Community Primary School authorities and the local authority decided to start and run their own after-school club from September 2023 at a lower rate and reduced hours. This forced our after-school club to close in September 2023 as it could not compete with the session rates the school offered the parents.

The Holiday Club

The holiday club was always popular with children and families around the Aberystwyth area and sometimes families from far away towns such as Machynlleth and Aberaeron. This is one of the most popular services run by Mes Bach – as of 2023/24, less than three settings were offering similar services in Ceredigion County. About sixty children used our holiday club services in the summer of 2023. The children have always enjoyed themselves and looked forward to future holiday club sessions with our caring and dedicated childcare staff.

2

Mes Bach - Little Acorns Child Care

Trustees' Annual Report

Year ended 31 March 2024

Statement confirming whether the trustees have had regard to the guidance issued by the Charity Commission on public benefit

In running the affairs of Mes Bach – Little Acorns Childcare, the trustees have had regard to the guidance issued by the Charity Commission on public benefit (PB1, PB2 & PB3).

Achievements and Performance

Summary of the main achievements of the charity See section 2 above.

In providing a range of full-day childcare services to children between the ages of two and twelve, Mes Bach – Little Acorns Childcare fulfilled a number of crucial socio-economic benefits to children and families in our community. Whilst the local education authority withdrew the 3/4-year-olds parttime education funding, Mes Bach trustees believed that it was essential to continue to support the education of children in our care by funding this programme using the charity’s reserves. The charity continued to provide holiday club service, which played a pivotal role in supporting working families within the area. In addition to the above, our after-school club offered children of school age a caring and safe environment where they could play and enjoy themselves under the supervision of our care staff until their parents or guardians collected them after work.

Financial Review

Review of the charity’s financial position at the end of the period

The combined effects of the termination of part-time education funding by the local education authority and the inability of Mes Bach to recover the funds used to bridge the gap in the financing had a detrimental impact on Mes Bach’s financial position. As a result of this, Mes Bach members made a decision to cease trading effective 07 January 2024. So effectively, the charity traded for nine months (April 2023 to January 2024) during the 2023/2024 financial year.

Statement explaining the policy for holding reserves stating why they are held

Mes Bach has a general reserve rule of holding three months of equivalent expenditure as a reserve. This is to serve as a contingent source of financing in a period of uncertainty. Amount of reserves held – Nil

3

Mes Bach - Little Acorns Child Care

Trustees' Annual Report

Year ended 31 March 2024

Reasons for holding zero reserves

In April 2022, the Local Authority informed Mes Bach trustees they were suspending the 3-year old Education Funding to Mes Bach from June 2022 and promised to In April 2022, the Local Authority informed Mes Bach trustees they were suspending the 3-year old Education Funding to Mes Bach from June 2022 and promised to restore funding as soon as some requirements were met and also back pay any withheld funds. In order to continue to meet the objectives and ethos of Mes Bach, the board of trustees made a decision to cover the shortfall from the withheld funding from our reserves with the expectation that the Local Authority will reimburse withheld funds to Mes Bach as promised. The rationale behind this decision was to ensure that families on low incomes using our setting continued to enjoy the services offered through the 3-year-olds Education funding and also ensure that none of the children was disadvantaged due to the withdrawing of the funding by the Local Authority. The continued withholding of the 3-year-olds' Education funding and the refusal of the Local Authority to back pay withheld funds to Mes Bach had a substantial impact on our reserves.

Details of fund materially in deficit – N/A

Explanation of any uncertainties about the charity continuing as a going concern

As pointed out above, members of the charity made a decision to cease trading in January 2024. This is as a result of a culmination of factors, which included the withdrawal of a significant source of funding by the Local Authority, depletion of the reserves as a result of them being used to cover shortfalls in funding due to the Local Authority’s withdrawal of 3-year olds Education Funding from Mes Bach, there was a fall in head counts of 3-year olds registering in the nursery, the reluctance of the Local Education Authority to promote Mes Bach provision as a choice to parents, and the refusal of the Local Authority to reimburse withheld funding as previously promised. Additionally, there was a loss of income stream from Mes Bach’s After-School club provision due to the Local Authority’s decision to open and operate an unregulated After-School provision at the school located next to Mes Bach and at a lower rate than Mes Bach was offering.

Structure, Governance and Management

Type of governing document

Constitution adopted on 09/06/1993 as amended on 14/02/2006 as amended on 11/05/2011 as amended on 12/06/2015.

How is the charity constituted?

Unincorporated Charitable Trust

Trustee selection methods

Trustees are elected from amongst the members during Annual General Meetings. There are two types of membership: family membership and affiliated or co-opted membership.

Other names the charity uses

Gofal Mes Bach – Little Acorns Childcare, Mes Bach, Little

Acorns, (Playgroup Site, Comins Coch CP School, Brongwinau, Comins Coch, Aberystwyth (SY23 3BQ))

Name of trustees holding title to property belonging to the charity

Mark C Longman

4

Mes Bach - Little Acorns Child Care

Trustees' Annual Report

Year ended 31 March 2024

Declarations

The trustees declare that they have approved the trustees’ report above. Signed on behalf of the charity's trustees

Aloysius Igboekwu Chairperson 21/01/2025

Mark C Longman Treasurer 22/01/2025

Date

5

Mes Bach - Little Acorns Child Care

Independent Examiner's Report to the Trustees of Mes Bach - Little Acorns Child Care

Year ended 31 March 2024

I report to the trustees on my examination of the financial statements of Mes Bach - Little Acorns Child Care ('the charity') for the year ended 31 March 2024.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

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 accounts to be reached.

Andy Moore 23/01/25

6

Mes Bach - Little Acorns Child Care

Statement of Financial Activities

Year ended 31 March 2024

2024
Note
Income and endowments
Donations and legacies
4
21669
0
21669
Other trading activities
5
0
0
0
Investment income
6
19
0
19
Other income
7
51505
0
51505
Total Income
73193
0
73193
Expenditure
8,9
Expenditure on charitable activities
98606
0
98606
Governance Costs
1751
0
1751
Total Expenditure
100357
0
100357
Net expenditure and net movement in funds
-27164
0
-27164
Reconciliation of funds
Total funds brought forward
1275
0
1275
Total funds carried forward
-25889
Unrestricted
funds
Restricted
funds
Total
Funds		 2023
41476
9710
5
54813
Total
funds
106004
124398
2355
126753
-20749
22024
1275

Pages 7 to 16 form part of these financial statements

7

Mes Bach - Little Acorns Child Care

Statement of Financial Position

Year ended 31 March 2024

2024 2023
Note £ £
Fixed assets
Tangible fixed assets 14 653 1318
Current assets
Debtors 15 179 179
Cash at bank and in hand 148 1329
327 1508
Creditors: amounts falling due within one year 16 26868 1551
Net current assets -26541 -43
Total assets less current liabilities -25888 1275
Net assets -25888 1275
Funds of the charity
Unrestricted funds -25888 1275
Total charity funds 18 -25888 1275

These financial statements were approved by the board of trustees and authorised for issue on and are signed on behalf of the board by:

Mark Longman - Treasurer Trustee

22/01/2025

Aloysius Igboekwu – Chair Trustee

8

21/01/2025

Mes Bach - Little Acorns Child Care

Notes to the Financial Statements

Year ended 31 March 2024

1 General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Brongwinau, Comins Coch, Aberystwyth, SY23 3BQ.

2 Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3 Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

9

Mes Bach - Little Acorns Child Care

Notes to the Financial Statements (continued)

Year ended 31 March 2024

Accounting policies (continued)

3 Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

10

Mes Bach - Little Acorns Child Care

Notes to the Financial Statements (continued)

Year ended 31 March 2024

3 Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: Equipment - 25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable

group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

11

Mes Bach - Little Acorns Child Care

Notes to the Financial Statements (continued)

Year ended 31 March 2024

3 Accounting policies (continued)

Financial instruments (continued)

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

12

Mes Bach - Little Acorns Child Care

Notes to the Financial Statements (continued)

Year ended 31 March 2024

4 Donations and legacies

Donations
Donations
Grants
Welsh Government
Ceredigion County Council
5
Other trading activities
6
Investment income
Bank Interest receivable
7
Other income
DASH
Mudiad Methrin
Service Users
Fee payments		 Restricted
Funds
£
0
0
0
0
Restricted
Funds
£
0
Restricted
Funds
£
0
Restricted
Funds
£
0
0
0
0
0		 2024
Unrestricted
Funds
£
2397
7463
11809
21669
2024
Unrestricted
Funds
£
0
2024
Unrestricted
Funds
£
19
2024
Unrestricted
Funds
£
2010
624
48871
0
51505		 Total
Funds
£
2397
7463
11809
21669
Total
Funds
£
0
Total
Funds
£
19
Total
Funds
£
2010
624
48871
0
51505		 2023
Total
Funds
£
0
0
33172
33172
2023
Total
Funds
£
8
2023
Total
Funds
£
5
2023
Total
Funds
£
0
0
54816
9710
64526

13

Mes Bach - Little Acorns Child Care

Notes to the Financial Statements (continued)

Year ended 31 March 2024

8 Expenditure on charitable activities by fund type

Restricted
Funds
£
Charitable costs
0
Support costs
0
0
9
Analysis of support & governance costs
Premises
Communications and IT
General office
10
Net expenditure
Net expenditure is stated after charging/(crediting):
Deprecation of tangible fixed assets
11
Independent examination fees
Fees payable to the independent examiner:		 2024
Unrestricted
Total
Funds
Funds
£
£
81666
81666
18691
18691
100357
100357
2024
Support
Costs
Total
£
£
4636
4636
895
895
13160
13160
18691
18691
2024
£
326
2024
£
0		 2023
Total
Funds
£
109917
16836
126753
2023
Total
£
6803
700
9333
16836
2023
£
440
2023
£
0

14

Mes Bach - Little Acorns Child Care

Notes to the Financial Statements (continued)

Year ended 31 March 2024

12 Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

Wages and salaries
Social security costs
Employer contributions to pension plans		 2024
£
60317
9593
5751
75661		 2023
£
95688
2277
5040
103005

The average head count of employees during the year was 11 (2022: 12). No employee received benefits of more the £60,000 during the year (2022: Nil).

13 Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

14 Tangible fixed assets

Cost
At 1 April 2023 and 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
At 31 March 2024
Carrying amount
At 31 March 2024
At 31 March 2023
15
Debtors
prepayments and accrued income
16
Creditors: amounts falling due within one year
Bank loans and overdrafts
Accruals and deferred income
Social security and other taxes
Other creditors		 2024
£
179
2024
£
350
560
898
25060
26868		 Equipment
£
3127
1808
326
2134
653
979
2023
£
179
2023
£
451
840
0
260
1551

15

Mes Bach - Little Acorns Child Care

Notes to the Financial Statements (continued)

Year ended 31 March 2024

17 Pensions and other post retirement benefits Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans Was £5761 (2022: £5040).

18 Analysis of charitable funds

Analysis of charitable funds
Unrestricted
Designated
Restricted
Total		 Incoming
Outgoing
Transfers
£
£
£
£
£
1275
73193
100357
0
-25889
0
0
0
0
0
0
0
0
0
0
Opening
Balance
Closing
Balance
1275
73193
100357
0
-25889

.

16

Mes Bach - Little Acorns Child Care

Year ended 31 March 2024 Income and Expenditure Schedule

INCOMING RESOURCES
Voluntary income
Donations
Ceredigion County Council
Fees and services
Investment Income
RESOURCES EXPENDED
Charitable activities
Wages (including severance pay)
HMRC
Pension
CCC
Premises (Maintenance)
Premises (Utilities)
Insurance
Fees & Licences
Consultation fees
Other
Phone
Consumables (card)
Governance costs
Independent examination
Office costs
Fines
Depreciation
Support costs
Finance
Bank Charges
Total resources expended
Net income		 2024
£
2397.18
11809.37
58968.46
73175.01
18.60
73193.61
60317.17
9592.87
5760.78
0.00
400.00
632.14
3603.62
3271.02
9493.37
1033.33
0.00
4442.37
98546.67
0.00
1291.33
0.00
326.00
1617.33
193.50
193.50
100357.50
-27163.89		 2023
£
0.00
41476.00
64523.00
105999.00
5.00
106004.00
95688.44
2277.16
5040.20
3695.00
6802.77
0.00
2442.53
5235.25
0.00
0.00
0.00
3216.65
124398.00
0.00
1305.00
400.00
440.00
2145.00
210.00
210.00
126753.00
-20749.00

This page does not form part of the statutory financial statements 17