Charlty r•glstratlon number 1029688 (England and Wal¢$) HAPPY FACES PLAYGROUP ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 HAPPY FACES PLAYGROUP LEGAL AND ADMINISTRATIVE INFORMATION Management Commltte• Ms The￿$& Seymour Ms Emma Crawford Mrs Hayley Flynn-sillince M5 Alice Rawlinson M5 Charfotte PTior Ms Joanna Smith Mrs Emma French Mr Mark French Mr Mark Sillincè Ms Samantha While Ms Louise Lewendon Ms SaFFiantha Lipscombe IAppoinled 1 May 20251 {Appointed 3 October 20241 (Appointed 9 April 2Q251 (Appointed 9 April 20251 IAppointed 30 June 2025) IAppoinled 13 Oclober 20251 (Appointed 1 May 20251 (Appointed 6 November 20251 (Appointed 14 October 20251 IAppointed 29 April 20251 ChaTity registration Eng5and and Wales 1029688 Independent examlner Shorthouse & Martin Limited Worthy House 14 Winchester Road Basingsloke Hampshire RG218UQ HAPPY FACES PLAYGROUP CONTENTS Pago Management Committee's report Independent examlnerfs report Slalèmenl of financial ath'vities ststement of financial position Notes to thè finanaal statements 7-15 HAPPY FACES PLAYGROUP MANAGEMENT COMMITTEE'S REPORT FOR THE YEAR ENDED 31 AUGusf2025 The Management Committee present their annual report and finan¢ial statemen15 for the year ended 31 August 2025. The financial slalemènts have b88n prepared in a¢¢x>rdance with the accounting polic•es sèt out in note 1 to the rinancial statements and comply with the playgroup's governing document, the Charrties Act 2Q11, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP 'Accounting and Reporting by Charities.. Slaternenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102}'. Obl*ctives and activiti•$ The aims of the Pr8-schoDI are lo enhance the development and edLJcation of children primarily under stalulory school age by encouraging parents to understand and provide for the needs of their children through wmmunity groups and by.. lal offering appropriate play. educatlon ar)d care facilities, family leaming and èxtended hours groups. together with the right of parents to take responsibillly for and to become involved In the activities of such groups. ensijring that such groups offer opportunities for all children whatever their race, culture, religion, tneans or ability., Ibl &nGouraging the sludy of the needs of such childrèn and their families and promoting publi¢ interest in and recognits'on of SLJ¢h needs in the local areas Icl instigating and adhering lo and furthering the aims and obje¢ls of the Pre-school Learning Allianco. Public benefit The Managemenl Committee have paid due regard lo guidance issued by the Charity Commission in dgciding what a¢tiwties the play9roup should undertake. The Playgroup offers sessions 5 days a week, with opening hours of 8.45am to 3.45pm from Monday to Friday. with 116xible sessions offered through thè day along with the option lo add ad-hoc sessions subject lo spac& being available. Parents are consulted ea¢h ytrar and agree the suitability of the sessions offered. As an approved Early Years Education Provider, we continue lo receive Earfy Years Education Payments from the lunder Hampshire County Council adhering to the Early Years Education Payment FLJnding terms and conditions. AchlÈvements and performance Swnificant aGlivitNes and achievements against objectives During the year, Happy Faces Playgroup continugd lo deliver high-qualily eady years education and childcate, supwrting children to develop in a sale, caring and stimulating environmenl. The selling remained committed to meeting the individual ngeds of every child while working in partnership with parents and carers to ensure the best possible outcomes. The Management Committee supported the nursery management team in maintaining high standards of care, investing in staff development and ensuring continued compliance with all slalulory and regulatory requirements. The setting continued lo benefit from Early Years Education Funding, enabling eligible families lo accèss funded chlldcare pla¢es. The Commitlee also continued lo strengthen governance arrangements during the year, welcoming new committee members who have brought additional skills and experience to support the future developmenl of the charity. D&mand.' Demarid for places rgmained positsve throughout the year, with occupancy levels remaining healthy despite continued challenges auoss the earfy years sector. The Committèè recognises that local demographics, increasing compelibon and changes lo government childcare funding continue lo influence enrolment patlèrrhs and therefore Tegularfy monitors ¢¢upancy levels and future forecasts. The nursery remains Committed lo providing flexible childcare to meet the changSng needs of lo¢%1 families while ensuring that staffing levels and resourcgs are appropriately managed. HAPPY FACES PLAYGROUP MANAGEMENT COMMITTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 other 8r8as.' The Committee has conb.nued to focus on maintaining a financially sustainable organisation whilst protecting the quality of education and ¢are provided. During the year. inveslrnent continued in staff (raining, learning resources and the maintenance of equipment to ensure children benefll from a safe, engaging and well-re50urBe(I trnvironment. Like many providers within the sector, Happy Faces experienced increased operational costs, particularly in relation lo staffing, pensions and general inflation. The Committee has worked cltssely with the nursery leadership team lo manage these p￿SSUreS responsibly while maintaining the high standards expected by families. Fundraising perfom)an¢e Fundraising activities continued IhroughDuI the year with the support of parents, families. stsff and the wider community. These activities gengrated approxiTnalely £2,400 during the year. with funds being used lo enhance resources and support Ihe ongoing development of the nursery environment. The Committee would like to exprèss Its slncere thanks lo everyone who 5UPPOrted fundraising events and made donations throughout the year. Their gonerosity continues to make a valuable contribution lo the eXper￿nCeS and opport4Jnities available to the children. Financial review This year has seen a small increase in our incoming ￿sOurceS wllh a tolal of £157,738 12024.. £147,742) being received, primarily from EYE ftjnding and lees invoiced. Our expgnses have also increased (from £168,133 to £174,636). staff costs have seen the m051 significant increase duè to an increase in staff numbers, bul the majority of other costs have been carefully monitored and reduced during the year. Overall the Playgroup had a defial in the ygar of £16.89812024.' deficit of £20.390I which has been ftjnded from our brought forward reserves. Income and expenditure will be carefully rnonilored in the coming year to reduce this deficit. Res8Thes policy It is the policy of the playgroup that unreslricled funds which have not been designated for a specific use should be maintained at a level equivalent to between thrÈ& and six month's expenditure. The Managemerit ComTnittg9 consider that reserves at this level will ensure that. in the event of a significant drop in funding, thèy wll be able to continue the playgroup's current activities while consideration is given lo ways in which additional funds may be raisod. This level of raserves has been m8intained throughoLJt the year. Structure, governance and management Happy Faces Playgroup is registèrèd with the Charty Commission8rs Ino. 10296881, constituted by a Pre-school Conslilulion dated 29 September 2012 and regulated by OFSTED. The Charty is administered by a voluntary Managemgnt Committee of mainly parents and other volunteers. HAPPY FACES PLAYGROUP MANAGEMENT COMMITTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 The Management Committee who served during the year and up to the date of signature of the financial statements were.. Mr5 Emma Bavin Mrs Frances Ferguson Mr Neil Bolger Ms Theresa Seymour Ms Gemma Rumt&)Id Ms Sara Keenan Ms Keila Archer Ms Emma Crawford Mrs Hayley Flynn-sillince Ms Alice Rawlinson Ms Charfotte Prior Ms Joanna Smrth Mrs Emrna Franch Mr Mark French Mr Mark Sillince Ms Samantha White Ms Louise Lewendon Ms Samantha Lip5combe (Resignèd 13 October 20251 (Resigned 13 Octobef 20251 (Reslgned 13 October 20251 IResigned 3 O¢lober 20241 IResigned 3 October 20241 IResi9ned 13 Octobèr 20251 (Appointed 1 May 20251 (Appointed 3 October 20241 IAppoinled 9 April 20251 IAppointed 9 April 20251 (Appointed 30 June 20251 (Appointed 13 October 20251 (Appointed 1 May 2025) (Appointed 6 November 20251 (Appointfjd 14 October 20251 {Appoinled 29 April 20251 RecruAtment and appointment ortrustees New mèmbers are appointed each year at thg Annual Geneial Meeting in October. None of thg Management Committée has any beneficial interest in the chartty. Emma Bavin resigned a5 Chair of the Committee on 13th O¢lober 2025. Mark French was appointed as Chair on this dale. Frances Ferguson resigned as Trèasurtrr of the Committee on 13th October 2025. Samantha While was appolnled as Treasurer on 6th November 2025. Neil Bolger resigned as se¢￿tary of the Committee on 13th Octobgr 2025. Chariotte Piior was appointed as Secretary on this dale. The Management mille ort was approved by the Board of Managemènt Committe8. Mr Mark French Chair 30 June 2026 HAPPY FACES PLAYGROUP INDEPENDENT EXAMINER'S REPORT TO THE MANAGEMENT COMMITTEE OF HAPPY FACES PLAYGROUP I report lo the Management Committee on my examination of the financial statements of Happy Faces Playgroup lihe playgroupl for the year ended 31 August 2025. Respon5iblliti95 and basls af rgport As the Management Committee of the playgroup you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011. I report in respect of my examination of the playgroup's financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed th8 Directions given by the Charity Commission under section 14515llbl of the Charifjes Act 2011. Independent oxamln•rfs statement Your attention is drawn to the fact that the charity has preparad the financial statements in accordance with the relevant version of the Slatèmant of Recofflmended Practice applicable to charities preparlng their finan¢lal statements in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland {FRS 1021 in preference to the Accounting and Reporting by Charities.. Statement of Recommended Praclice issued on 1 April 2005 which is referred lo in the extant regulations bul h8$ nr)w been withdrawn. l understand that this has baen done in order for the financial statements lo provide a true and fair view in accordance with UK Generally Accepted Accounting Practice. I have completed my examinafjon. I confimi that no mallers have come lo my attention in connection with the examination giving me cause to believe that in any material respect.. accounting re￿rdS were not kept in r8sped of the playgroup as required by section 130 of the Chari119s Act 2017, the financial 51alements do not accord with those records.. or the financial statements do not comply wth the applicable requirements concerning the form and contenl of financial siatemenls set out In the Charities (Accounts and Reports} Regulations 2008 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination. I have no Concems and have come across no other matt8rs in connection with the examination to which attention should be drawn in this report In order to enable a proper understanding of the flnancial statements lo be reached. Jodie Saund•rsACA Shorthouse & Martln Llmlted Worthy House 14 Winchester Road Basingstoke Hampshire RG21 8UQ 30 June 2026 HAPPY FACES PLAYGROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2025 Unrestricted fund$ 2025 Unrestricted funds 2024 Notès Incomè from: Donations and Grants Charitable activities Fundraising Investments 127,826 26,778 2.407 727 99,864 42.752 4,705 422 Total income 157,738 147,743 Expendlture on.. Raising funds Charitable activities 2,189 165,944 173.525 Total expenditur8 174.636 168,133 Net expendlture and rnovement in funds 116.8981 120,390} Reconclllatlon of fund5: Fund balances at 1 September 2024 82,332 102,722 Fund balances at 31 Augu$t 2025 65.434 82,332 The statement of financial activities Includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. HAPPY FACES PLAYGROUP STATEMENT OF FINANCIAL POSITION ASAT31 AUGUST2025 2025 2024 Notes Flxed assets Property, plant and equipment 12 5,379 7.462 Current •$Sgts Inventories Trade and other receivables Cash at bank and in hand 13 14 102 1,773 62.152 131 1,823 78,393 64.027 13,9721 80,347 15.4771 Currant Ilabllltlos 15 Net ¢urr•nt assets 60.055 74,870 Total assets l•$$ ¢urront liabilities 65,434 82,332 The funds of the playgroup Unrestricted funds 18 65,434 82,332 65,434 82.332 The financial statements were approved by the Management Committee on 30 June 2026 Mr Mark Fren¢h Ch¥lr HAPPY FACES PLAYGROUP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Accountlng pollcl¢s Charlty infomiation Happy Faces Playgroup is a charitable organisalion. 1.1 Basis of preparatlon The financial statements have been prepared in accordance with the playgioup's goveming document. the Charities Act 2011. FRS 102 'The Financial Reporting Standard applicable in the UK and Rtspublic of Ireland" and the Charrties SORP 'Accounting and Reporting by Charitigs.. Statement of Recommended PractiGe applicable lo ¢harslies preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in Ihfy UK and Republic ol Ireland IFRS 1021. The playgioup is a Public Benefit Entity as defined by FRS 102. The playgroup has taken advantage of the provisions in the SORP for chaTilies not to p￿pare a statement of Cash flows. The finanaal statemènts have departed from the Charities (Accounts and Reports) Regulations 2(K18 only lo the extent required to provide a true and fair view. This departure has involved fr)Ilowing the Statement of Recommended Practice for charities applw'ng FRS 102 rather than the version of the Statement of Recommended Practice whith is refer￿rt lo in the Regulations bul which has sin¢e been withdrawn. The financial statements are ￿pared in sterling, which is the functional currency of Ihe playgroup. ThAonelary amounts in Ih8se linanaal statements are rounded to the nearest £. Th8 financial statements have been p￿pared undtrr the historical cost convèntion. The princtpal accounting policies adopted are set out below. 1.2 Golng concem At the time of approving the financial statements, the Management Committee have a reasonable expectation that the playgroup has adequate resources lo continue in operational existence for the foreseeable future. Thus the Management Committee continue to adopt the going concern basis of accounting in preparing the financial 5taL8ments. 1.3 Charitable funds Unrestricted funds are availabl& fo¥ use at the discretion of the Management Committee in furtherance of their charitable obJ"eclivés. Restricted funds are subject lo specific conditions by donors or grantors as lo how they may be used. The purposes and uses of the reslricled fund5 are set out in the noles lo the finanual slalemenls. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the playgroup. 1.4 Income Income is recogni5ed when the playgroup is legally enb'lled lo it afier any performance conditions have been met, the amounts can be m8asured rèliably, aT)d il is probable that income will be re￿ived. Cash donations are recognised on receipt. Other donations are recognised once the playgroup ha5 been nolifi8d of the don8lion, unless performancè eondilions r￿Vire deferral of the amount. Incorne tax recoverable in relation lo donats'ons received under GiftAid or deeds of covenant is recognised at the lime of the donation. HAPPY FACES PLAYGROUP NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 Accountlng pollclès (Continued) 1.5 Expendlture Expenditure is recognised once there is a legal or conslrudive oblioalion to transfer economic benefit lo a third party, it is probable that a transfer of economic bgn8fits will be required in settlement, and the amount of the obligation can bè mgasured reliably. Expenditure is dassified by activity. The costs of each activity are ￿arte up of the total of direct costs and shared costs, including SUPPOrt costs involved in undertakn'ng each activity. Direct costs attributable to a single activity are allo¢ated directly lo that aclivily. Shared costs which contribute to more than one activity and support costs which aro not attribvlablè to a single activity ale apportlDned belNgèen those activities on a basis OnSlStent with the use of resources. Central staff costs are allocated on the basis of Ilme spent, and depre¢iati¢)n charges are allocated on the portion of the asset's use. 1.6 Property. plant and •qulpment Property. plant and equipment are initially Measured al cost and subsequently measured al cost or valuation, nel of depreciation and any impaimienl losses. Depreciation is recognised so as to write off the Cost or valuation ol assets less their residual values over their useful live5 on the following bases.. Computers Playgroup equipmenl 25% on ¢ost 25Yo on cost The galn or loss arising on the disposal of an asset is determined as the diffgrèn¢e be￿een the sale proceeds and thè carrying value of the asset, and is recognisgd in the ststement of financial activities. 1.7 Impalmient of nonm) Leavers. gifts C¢mmillee expenses Gifts Recruitment costs and DBS checks Bad debts Accounts and payroll software Other charitable expenditure 143,288 2,128 14,811 5,153 1,144 490 1,555 266 142 939 169 167 37 54 202 134,078 1,014 15,220 5,567 2,784 494 1,258 763 776 251 37 802 148 481 553 1,580 460 2.520 173.525 165.944 Analysls by fund Unreslricled funds 173.525 165,944 HAPPY FACES PLAYGROUP NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 N•t movement In funds 2025 2024 The nel movament in funds is staled after chargingllcredilingl.. Fees payable lo the Charity's independent 8xaminar. - for Ihe independent examination of the charity's financial ststements - for tax advisory services for other financial services Depreciation ol owned property, plant and equipment 1.164 90 816 102 1.014 2,128 Management Committee None of the Management Committee lor any persons connected with them) received any remuneration or benefits from the playgroup during the year. 10 Employees The average monthly number of employees during the year was.. 2025 Number 2024 Number 11 10 Employment ¢osts 2025 2024 Wages and salaries Other pension costs 141,553 1,735 132,272 1,806 143,288 134,078 Not all members of stsff work full time. There ware no employees whose annual remuneratton was more than £60,000. Remuneratlon of key management p&rsonng1 The remuneration of key management personnel was as follows.. 2025 2024 Aggragale compgnsation 24,892 24,570 11 Taxation The charity is exempl from taxation on its activities because all ils incomg is applied for chariiable purposes. 12- HAPPY FACES PLAYGROUP NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 12 Property, plant and equipment Computers Playgroup &quipm•nt Total Cost At 1 September 2024 Additions 511 45 8,497 45 At 31 August 2025 556 7,986 8,542 Depr•clatlon and impaiment At 1 September 2024 Depreciation charged in the year 149 131 1,035 2,128 1,997 At 31 August 2025 280 2,883 3,163 Carrying amount At 31 August 2025 276 5,103 5,379 Al 31 August 2024 362 7.100 7,462 13 Invontorlas 2025 2024 Finished goods and good5 for resale 102 131 14 Trad• and other receivables 2025 2024 Amounts falling due within one year- Trade re￿1VableS Prepayments and accrued income 38 1,735 317 1,506 1,773 1,823 15 Currènt Ilabllitles 2025 2024 Notes Other laxalion and social security Deferred income Trade payables Other payables Accruals 2,161 380 218 103 1,110 3.413 907 341 16 816 3.972 5,477 13- HAPPY FACES PLAYGROUP NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 16 Def&rred InGome 2025 2024 Arising from fees received in advance 380 907 Deferred incorne is included in the financial statements as follows.. 2025 2024 Deferred income is included within.. Current liabilities 380 907 Movèments in the year.. Deferred income al 1 September 2024 Released from previous periods Resources deferred in the yoar 907 19071 380 907 Deferred Income al 31 August 2025 380 907 17 Retiremant b8nefit schemes 2025 2024 Definod cantribution schemgs Charge lo prof(E or loss in respect of deftned contribution schemes 1.735 1.806 The playgroup operates a dèfingd contribution pensK)n sch8me for all qualifying amployees. The assets of the scheme are held separately from those of the playgroup in an independently administered fund. 18 Unr•$trlcted funds The unrestricted funds of the charlty comprise the unexpended balances of donations and grants which a not subject to specific condllions by donors and grantors as to how they may be used. These include deslgnaled funds which have been set aside out of unrestricted funds by the Iwstees for spèctfi¢ PUTposes. At1 September 2024 Incomlng Ro$ourc8s At 31 Augu$t resour¢o$ axpended 2025 General funds 82.332 157.738 1174,6361 65,434 Prevlou$ year: At1 S•ptember 2023 In¢oming resourcgs Resources At 31 Augu$1 èxpènded 2024 General funds 102.722 147,743 1168,1331 82,332 14- HAPPY FACES PLAYGROUP NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025 19 Relatèd party transa¢tlons There were no disclosable related party transactions during the year12024 - nonel.