**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:
- Long-term sickness absence;
- Departure of key staff members;
- 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:
- Funding – £72,644
- HAF Funding – £7,688
- Pre-School Fees (non-funded) – £12,149
- Out of School Club – £34,651
- Holiday Club – £9,589
- 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:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. 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:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. 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|
|---|---|---|---|