SMARTIES TREASURER’S REPORT FOR FY24/25
ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
‑ Jon Satinet – Smarties Co Treasurer May 2026
Introduction
Smarties was a charity supporting local children and families through the provision of preschool and out-of-school club services, offering affordable wrap-around childcare to working parents. In addition, Smarties operated a Holiday Club during school holiday periods, providing childcare provision throughout the year.
In January 2026, the setting’s registration was suspended by Ofsted for a period of six weeks following an incident at the setting. As a result of the enforced closure, the charity experienced significant financial pressures alongside a substantial reduction in enrolment, as families sought alternative childcare provision within the local area.
Following careful consideration of the charity’s financial position and long-term viability, it was resolved at a duly convened Extraordinary General Meeting (EGM) that closure of the setting represented the most prudent and responsible course of action.
The trustees are currently overseeing the orderly wind-up of the charity in the most financially prudent manner possible. All staff have now left the setting, and work is ongoing to settle outstanding liabilities and conclude the charity’s affairs in accordance with its governing document and regulatory obligations.
A further Treasurer’s Report will be prepared once the closure process has been completed.
Financial Performance Summary
When reviewing the financial performance for the year ending August 2025, comparisons have been made against the previous financial year in order to identify significant variances and trends in accordance with standard accounting practice.
At the end of the financial year, Smarties reported a deficit of £26,255, representing a significant deterioration compared with the previous year, in which a surplus of approximately £5,000 was achieved.
Several factors contributed to the decline in the charity’s financial position during FY24/25, including:
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Long-term sickness absence;
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Departure of key staff members;
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High staff turnover, resulting in increased recruitment and staffing costs;
• Reduced pupil numbers across all service offerings, including Breakfast Club, Holiday Club, Afterschool Club and Early Years provision; and
These factors led to a reduction in pupil income of approximately 15% compared with the previous year, alongside an increase in operating costs of approximately 4%.
Despite the financial challenges experienced during FY24/25, it had been anticipated that, following a period of significant operational change and disruption, the charity would return to a more stable operational and financial footing during FY25/26, enabling pupil numbers and overall income levels to gradually recover.
Income
Total income in FY24/25 was £137.5k, representing a reduction of £25.7k compared with the previous financial year.
Income was generated through the following sources:
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Funding – £72,644
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HAF Funding – £7,688
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Pre-School Fees (non-funded) – £12,149
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Out of School Club – £34,651
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Holiday Club – £9,589
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Other Income – £743
Total Income – £137,462
Expenditure
Total operating expenditure for FY24/25 was £163.7k, approximately £5.6k higher than the previous year.
Staffing costs increased as a result of sickness absence, staff turnover and the requirement for temporary staffing support to ensure minimum staffing ratios were maintained. In addition, the required replacement of the fire alarm system resulted in approximately £2.6k of one-off exceptional expenditure. Increased National Insurance costs also contributed to the rise in operating expenditure.
Staffing costs continued to represent the charity’s largest area of expenditure and became increasingly difficult to sustain as occupancy levels declined during the year.
Loan from the Parish Council
In 2018, Smarties received a £6,000 loan from the Parish Council. During February 2025, Smarties repaid £500 from reserves generated in the previous financial year. The outstanding balance at the year end was therefore £5,500.
Current Financial Position and Reserves
As at the date of this report, Smarties held approximately £8.7k in cash reserves. Trustees are continuing to assess the final financial position following settlement of all outstanding liabilities.
The trustees recognise the importance of maintaining adequate reserves to manage operational risks and unforeseen disruption. However, due to the significant financial pressures experienced during FY24/25 and the subsequent decision to cease operations, reserves reduced substantially during the year.
Debtor Management
Trustees identified improvements that were required in relation to invoicing processes and debtor management during the year. Measures were implemented to improve the timeliness of billing and recovery of outstanding fees.
At the year end, approximately £4k remained outstanding from unpaid parent and carer invoices. Recovery of these balances continues to be pursued.
Acknowledgements
The trustees would like to thank all staff, volunteers, parents, funders and supporters who have contributed to Smarties over many years of operation and service to the local community.
The trustees would also like to express their sincere thanks to RLA Group for continuing to provide accountancy support free of charge, which has provided significant financial assistance to the charity over a number of years.
‑ Jon Satinet – Co Treasurer
Date: 23[rd] May 2026
Smarties Pre school and Out of School Club
Income and Expenditure Account
For the year ended 31 August 2025
Smarties Pre school and Out of School Club
Year ended 31 August 2025
Client approval Certificate
We approve the financial statements and confirm we have made available all relevant records and information for their preparation.
….................................................
Date…...........................................
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SMARTIES PRE-SCHOOL AND OUT OF SCHOOL CLUB
Independent examiner's report to the trustees of Smarties Pre-School And Out Of School Club
I report to the charity trustees on my examination of the accounts of Smarties Pre-School And Out Of School Club (the Trust) for the year ended 31 August 2025.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all 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:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts 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.
Signed:
….............................................
Giovanni Ruggieri
Building 18, Gateway 1000 Whittle Way, Arlington Business Park Stevenage
Hertfordshire
SG1 2FP
Date
| Smarties Pre-school and Out of School Club Income and Expenditure summary for the year ended 31 August 2025 Income_Fees_ Funding HAF Funding Pre-School fees (non-funded) Out of school Holiday Club Furlough Income Grant Income Donations Fundraising Interest received Shopping Income Uniform Other Revenue Total income Expenditure Adverts BT & Internet Building consumables Bad debts Course fees (inc CCC, Parents First Aid & Safety Course) Cleaning including deep clean General Repairs Fundraising costs Insurance & Ofstead registration fee Mileage & Travel costs Misc (inc DBS checks, petty cash, expenses) New Equipment (Server & Lap Top) Out of school holiday club costs Post & stationery Professional fees including payroll charges and Xero Rent Electricity bill Annual subscriptions Accountancy Shopping (Food & Drink) Supplies (inc craft, cooking & general) Entertaining EYPP & DAF costs Uniform (children & staff) Forest School Expenses Wages Casual Wages Pensions Employer NI Health & Safety Hall Hire IT Costs Total expenditure Surplus income over expenditure Cash balance brought forward Add surplus income for the year Deposit account Current account Petty Cash Accrued Income Trade Debtors Trade Creditors Income in advance Wages Payable Paye Payable Pension payable Loan- SM Parish Council |
£ £ 72,644 7,688 12,149 34,651 9,589 136,720 - 149 341 253 743 137,462 19 824 2,694 118 620 2,210 140 51 954 102 988 1,476 1,114 1,580 4,398 5,544 790 3,096 2,277 1,281 1,631 126,868 260 2,121 1,090 163 1,310 163,717 26,255 - 48,576 26,255 - 22,322 25,825 19,342 234 - 3,998 3,547 - 15,133 - 446 - 1,859 - 592 - 5,500 - 22,322 2024/25 |
2023/24 £ 67,879 14,874 13,342 49,459 15,803 - 139 1,500 131 88 1,078 1,237 2,523 684 299 243 852 273 984 46 3,376 495 377 4,398 5,113 984 4,863 5,859 71 120,757 1,813 55 72 1,591 4,998 43,578 4,998 48,576 26,072 27,538 84 - 21,091 3,137 - 15,133 - 1,286 - 653 - 6,000 - 48,576 |
£ 161,356 1,771 163,127 158,128 |
|---|---|---|---|
Smarties Pre school and Out of School Club
Income and Expenditure Account
For the year ended 31 August 2025
Smarties Pre school and Out of School Club
Year ended 31 August 2025
Client approval Certificate
We approve the financial statements and confirm we have made available all relevant records and information for their preparation.
….................................................
Date…...........................................
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SMARTIES PRE-SCHOOL AND OUT OF SCHOOL CLUB
Independent examiner's report to the trustees of Smarties Pre-School And Out Of School Club
I report to the charity trustees on my examination of the accounts of Smarties Pre-School And Out Of School Club (the Trust) for the year ended 31 August 2025.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all 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:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
the accounts 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.
Signed:
….............................................
Giovanni Ruggieri
Building 18, Gateway 1000 Whittle Way, Arlington Business Park Stevenage
Hertfordshire
SG1 2FP
Date
| Smarties Pre-school and Out of School Club Income and Expenditure summary for the year ended 31 August 2025 Income_Fees_ Funding HAF Funding Pre-School fees (non-funded) Out of school Holiday Club Furlough Income Grant Income Donations Fundraising Interest received Shopping Income Uniform Other Revenue Total income Expenditure Adverts BT & Internet Building consumables Bad debts Course fees (inc CCC, Parents First Aid & Safety Course) Cleaning including deep clean General Repairs Fundraising costs Insurance & Ofstead registration fee Mileage & Travel costs Misc (inc DBS checks, petty cash, expenses) New Equipment (Server & Lap Top) Out of school holiday club costs Post & stationery Professional fees including payroll charges and Xero Rent Electricity bill Annual subscriptions Accountancy Shopping (Food & Drink) Supplies (inc craft, cooking & general) Entertaining EYPP & DAF costs Uniform (children & staff) Forest School Expenses Wages Casual Wages Pensions Employer NI Health & Safety Hall Hire IT Costs Total expenditure Surplus income over expenditure Cash balance brought forward Add surplus income for the year Deposit account Current account Petty Cash Accrued Income Trade Debtors Trade Creditors Income in advance Wages Payable Paye Payable Pension payable Loan- SM Parish Council |
£ £ 72,644 7,688 12,149 34,651 9,589 136,720 - 149 341 253 743 137,462 19 824 2,694 118 620 2,210 140 51 954 102 988 1,476 1,114 1,580 4,398 5,544 790 3,096 2,277 1,281 1,631 126,868 260 2,121 1,090 163 1,310 163,717 26,255 - 48,576 26,255 - 22,322 25,825 19,342 234 - 3,998 3,547 - 15,133 - 446 - 1,859 - 592 - 5,500 - 22,322 2024/25 |
2023/24 £ 67,879 14,874 13,342 49,459 15,803 - 139 1,500 131 88 1,078 1,237 2,523 684 299 243 852 273 984 46 3,376 495 377 4,398 5,113 984 4,863 5,859 71 120,757 1,813 55 72 1,591 4,998 43,578 4,998 48,576 26,072 27,538 84 - 21,091 3,137 - 15,133 - 1,286 - 653 - 6,000 - 48,576 |
£ 161,356 1,771 163,127 158,128 |
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