# NAVAL UNDER FIVES (EASTERN AREA) 

ANNUAL REPORT AND FINANCIAL STATEMENTS 

## For Period 

1 August 2020 to 31 July 2021 

Registered Charity No. 1036832 



NAVAL UNDER FIVES (EASTERN) FUND 

## LEGAL AND ADMINISTRATIVE INFORMATION 

|Charity Registration no.|1036832||
|---|---|---|
|Address|8 Shackleton Road||
||Gosport||
||Hampshire||
||PO13 9SG||
|Governing Document|Constitution (revised 2004)||
|Objects|To provideday care forchildren ofService families||
||To advance the development and education ofpreschool||
||children.||
||Toprovidea safe, healthy, happyand stimulatingenvironment.||
||To assist the development ofchildren through structured||
||and free play.||
||To meet the requirements|ofOfsted.|
|Trustees|MrMichael Proudman|Chair|
||Mrs Susan White<br>Treasurer||
||Mrs Jackie Cole||
||Mrs Sally Pratt|(StaffRepresentative —Employee)|
||Trustees are selected by recommendation from existing trustees,||
||interview, instruction and|then proposed at next Trustees meeting.|
|Independent Examiner|PeterNicholls MBEMAAT||
||5 Nursery Road||
||Havant||
||HantsPO93BG||



## The Activities of the Charity 

- e The NUF Operations Manager oversees the overall running of the charity on a day-to-day basis on behalf of the Board of Trustees. An administration assistant assists the Operations Manager. The organisation consists of one office, six pre-schools and one under three groups. Each group has fully qualified and trained staff. 

- e Staff members are encouraged to maintain the high levels of training and to continue to receive high Ofsted reports. 

- e Continues to liaise with the Naval Service Family Personnel Support organisation to maintain the Service Level Agreement. Liaising with LEAs and Ofsted. 

- e The Board of Trustees is made up from volunteers and each group encourages parents to volunteer their time. College apprentices are paid. 

- e Several of the groups participated in fund raising for other charities e.g. Ocean Ward Southampton, MacMillan, Poppy Appeal and Children in Need. 

- e Numbers had fallen to around 120 children. The majority of children came from Service families. 

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## Financial Review 

After several years of losing money, the fund turned a corner last year and this trend continued this year as it made a £13.8K gain on its activities. The fund was worth £104.7K, of which half was available for redundancy payments should they be required. 

## Investment Selection Policy 

The Trustees have decided not to invest spare reserves in market-based investments as they do not wish to subject the charity’s money to the risks and vagaries of the market. 

## Reserves Policy 

The Trustees have considered the level of reserves they wish to retain appropriate to the charity’s needs. The trustees aim to ensure that the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income e.g. adverse demographics in the area, or unexpected expenditure. Reserves are generated by parental paid fees, as opposed to Government funding, which may only be utilised in accordance with the Local Authority Provider Agreement. The Trustees consider that it would be prudent to hold greater reserves than currently held so that there is sufficient to pay redundancy payments to its staff should the Ministry of Defence withdraw its support. In addition, as the MoD no longer maintains the fabric of the buildings used for the settings, the Trustees wish to hold readily accessible reserves to provide the means to refurbish settings as the need arises. 

## Risk Assessment 

The Trustees actively review the major risks that the charity faces on a regular basis. The major risk would be a radical change of policy by the Ministry of Defence. This has been assessed and is covered by the Service Level Agreement between the charity and the Ministry of Defence. Other risks centre on the change in numbers of children in the area and competition from other preschool facilities, some government funded, in the area. 

## Declaration 

The trustees declare that they have approved the Trustees’ Report above. 

Signed on behalf of all the trustees. 

M Proudman Chair 

5 October 2021 

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## Independent Examiner’s Report to the Trustees of the Naval Under Fives (Eastern Area) Fund 

[ report on the accounts of the Charity for the year ended 31 July 2021, which are set out in pages | to 4. 

## Respective responsibilities of trustees and examiner 

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (The Charities Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a licenced member of the Association of Accounting Technicians. 

## It is my responsibility to: 

- e examine the accounts under section 145 of the 2011 Act; 

- e to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Charities Act, and 

- e to state whether particular matters have come to my attention. 

## Basis of independent examiner’s report 

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review ofthe accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustee for any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below. 

## Independent examiner’s statement 

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in any material respect: 

- e The accounting records were not kept in accordance with section 130 of the Charities Act; or e The accounts did not accord with the accounting records; or e The accounts did not comply with the applicable requirements concerning the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than in any requirement that the accounts give a “true and fair” view which is not a matter considered as part of an independent examination. 

[ 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. 

P A Nicholls MBE MAAT 5 Nursery Road Havant Hants PO9 3BG 

5 October 2021 

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## NAVAL UNDER FIVES (EAST) 

## Registered Charity No 1036832 

## BALANCE SHEET 

## 31-Jul-21 


**----- Start of picture text -----**<br>
31-Jul-20<br>Fixed Assets Notes<br>Property 4 £ 1,611.00 £ 2,178.00<br>Current Assets<br>Petty Cash held by Pre-Schools £ 617.37 £ 210.67<br>Barclays Community Account £ 130,196.03 £ 98,058.38<br>Total Cash & Bank held £ 130,813.40 £ 98,269.05<br>Debtors and prepayments 8 £ 2,039.90 £ 4,809.90<br>Total Current Assets £ 132,853.30 £ 103,078.95<br>Less Liabilities<br>Creditors 9 £ 29,711.44 £ 14,351.74<br>Net Current Assets £ 103,141.86 £ 88,727.21<br>Total Assets £ 104,752.86 £ 90,905.21<br>Provision for Redundancy £ 52,600.00 £ 72,100.00<br>Total Assets After Provision “£ 52,152.86 “£ [18,805.21]<br>Approved on behalf of all trustees on behalf of all trustees behalf of all trustees of all trustees all trustees trustees ee<br>M Proudman 5 October 2021<br>Chair<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Approved on behalf of all trustees on behalf of all trustees behalf of all trustees of all trustees all trustees trustees ee<br>**----- End of picture text -----**<br>


NUSJuI21 BSBALANCE SHEET 

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## NAVAL UNDER FIVES (EAST) 

## STATEMENT OF FINANCIAL ACTIVITIES 

## For year ended 31 Jul 21 

|Income|Note|||Previous Year|Previous Year|
|---|---|---|---|---|---|
|Donations||£|5,412.67|£|18,109.68|
|Charitable Activites||£|370,273.56|£|304,491.06|
|Interest||&|0.30|£|35.23|
|Total Income|2|£375,686.53||£|322,635.97|
|Expenditure||||||
|Charitable Activities||£|361,838.88|£|313,363.09|
|Total Expenditure|3|£|361,838.88|£|313,363.09|
|Net income or (expenditure)||£|13,847.65|£|9,272.88|
|Previous Year Correction||£|-|£|9,600.66|
|Net movement in funds||£|13,847.65|£|18,873.54|
|Total Funds brought forward||£|90,905.21|£|72,031.67|
|TotalFundscarriedforward||£|104,752.86|£|90,905.21|



## Notes to the Accounts 

## Note 1 

a. The financial statements are prepared under the historic cost convention (as modified by the revaluation of fixed asset investments) and in accordance with applicable accounting standards: Charities Statement of Recommended Practice Oct 2019, UK Accounting Standards and the Charities Act 2011. 

## Incoming resources 

a. Donations are included in the Statement of Financial Activities (SOFA) when the fund becomes entitled to the donation or grant and it is reasonably certain that it will be received. b. Incoming resources from fund raising are reported gross in the SOFA 

- c. Intangible income is not included in the accounts. d. The fund receives no unpaid volunteer help, although staff members may occasionally work. without pay when trialling new schemes. 

## Expenditure and liabilities 

a. _ Liabilities are recognised as soon as there is a legal or constructive obligation committing the fund to the expenditure. 

## Assets 

Tangible fixed assets are capitalised if they can be used for more than one year and cost at least £100. They are valued at cost or a reasonable value on receipt. The fund does not have a policy of revaluation. Depreciation is annually, straight line and over the estimated life of the item. 

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## NAVAL UNDER FIVES (EAST) 

|Note 2 - Income||||||Previous Year|Previous Year|
|---|---|---|---|---|---|---|---|
|Voluntary Income||||||||
|Furlough Grants|£|4,112.67|||£|18,109.68||
|RNRM Childrens Fund|£|1,300.00|||£|-||
|Charitable Activities|||£|5,412.67||£|18,109.68|
|HCC LEA Funding|£|180,896.57|||£|164,425.39||
|PCC LEA Funding|£|85,567.27|||£|63,793.53||
|Hants Parents' Fees|£|91,460.27|||£|49,039.01||
|Portsmouth Parents’ Fees|£|4,786.80|||£|14,394.43||
|Early Years|£|1,800.00|||£|104.01||
|Sodexo/Busy Bees|£|6,651.10|||£|12,423.27||
|Milk|£|-|||£|67.42||
|Photo Discount|£|110.35|||£|-||
|Miscellaneous Income|£|1.20|||£|244.00||
||||£|370,273.56||£|304,491.06|
|Investment Income||||||||
|Bank Interest|||£|0.30||£|35.23|
|Total Income|||£|375,686.53||£|322,600.74|
|Note 3 - Expenditure||||||||
|Charitable Activities - Operating||||||||
|Wages & National Insurance|£|286,496.22|||£246,666.42|246,666.42||
|Pensions|£|3,909.38|||£|2,660.70||
|Agency Staff|£|2,181.33|||£|-||
|Pre-School Equipment|£|1,406.57|||£|1,281.47||
|Pre-School Registration Fees|£|120.00|||£|420.00||
|Misc Pre-School Group Expenses|£|30.00|||£|292.23||
|Milk|a|-|||£|25.32||
|Parties & Outings|£|-|||£|65.69||
|Training|£|1,046.51|||£|1,512.25||
|Repairs & Renewals|£|2,666.48|||£|1,412.10||
|Premises Expenses|&|1¥533.15|||£|-||
|Grant Funded improvements|£|1,300.00|||£|-||
|Insurance|£|2,483.30|||£|2,449.07||
|Sage Support|£|1,477.30|||£|1,893.76||
|Print, Post, Stationery|£|1,265.84|||£|1,830.03||
|Copier|£|2,158.46|||£|990.00||
|Advertisements|re|144.56|||£|66.78||
|Website|£|-|||£|450.00||
|Nursery items & Food|£|1,123.54|||£|990.85||
|Storage|g|-|||£|195.00||
|DBS Clearances|£|56.39|||£|68.49||
|Wi Fi/Internet|£|3,052.72|||£|2,643.13||
|Bank Charges|&|101.30|||£|625.63||
|Refuse|£|896.31|||£|940.40||
|Travelling Expenses|7a§|-|||£|176.74||
|Charitable Activities - Support Costs||||||||
|Office Wages & National Insurance|£|38,234.63|||£|41,757.51||
|Office Pensions|£|728.51|||£|924.52||
|Redundancy|£|7,500.00|||£|-||
|Independent Examination Fees|£|465.00|||£|455.00||
|Debt Collection|£|549.40|||£|-||
|Property Depreciation|£|911.98|||£|2,570.00||
|TotalExpenditure|||£|361,838.88||£|313,363.09|



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NAVAL UNDER FIVES (EAST) 

## Note 4 - Tangible Fixed Assets - Property Account 


**----- Start of picture text -----**<br>
Net Book Value at 1 Aug 20 £ 2,178.00<br>Additions E 344.98<br>Depreciation £ (911.98)<br>Property Valuation at 31 Jul 21 £ 1,611.00<br>**----- End of picture text -----**<br>


## Note 4A - Intangible Assets 

The office and pre-school venues are provided by the Ministry of Defence in exchange for providing the pre-school service to the naval community. 

## Note 5 - Paid Employees 

a. The Charity has paid employees, average numbers were 23. All are employed directly on the charity's objectives. None was paid in excess of £60,000 in this year or last. b. The Operations Manager, a salaried employee, is also a trustee. C. Employer's National Insurance costs were £19,071 (19/20 - £14,534) 

## Note 6 - Trustee and Other Related Parties 

a One trustee is an employee. Otherwise no expenses or emoluments have been paid to the trustees. b. There are no amounts due to or from the Trustees 

## Note 7 - Endowment and Restricted Funds - There are none 

## Note 8 - Debtors and Prepayments 

||Fees<br>Prepaid Insurance|£<br>£|1,834.90<br>205.00|
|---|---|---|---|
|Note|9 - Creditors and Accruals|£|2,039.90|
||Holiday Pay/Wages<br>Employers Pensions|£ <br>£|16,543.69<br>566.44|
||HMRC<br>Unspent Grant<br>Food Vouchers|£<br>£<br>£|6,326.40<br>5,292.00<br>583.00|
||Ink|£|25.94|
||Equipment|£|138.97|
||Independent Examiner's Fees|£|235.00|
|||£|29,711.44|



## Note 10 - Declarations 

a. The Trustees have not changed the year end date nor the length of the fund's financial year. b. All the fund's operations are continuing operations and there no operations were discontinued. C The fund has no marketable intangible assets d. None of the fund's functional assets have been revalued during the year and the fund does not have a policy of revaluation of these assets. e. The fund has no material fixed assets which have not been capitalised and included in the Balance Sheet. 

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