2023-08-31-accounts - Early Years @ Lightcliffe

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Charity number 1037861

Early Years @ Lightcliffe

Annual Report and Financial Statements

for the year ended 31 August 2023

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Early Years @ Lightcliffe

Annual Report and Financial Statements for the year ended 31 August 2023

Contents	Page
Trustees' report	2 to 3
Examiner's report	4
Statement of financial activities	5
Balance sheet	6
Notes to the accounts	7 to 11

Prepared by West Yorkshire Community Accountancy Service CIO

Early Years @ Lightcliffe

Trustees' report for the year ended 31 August 2023

Reference and administrative details of the charity, its trustees and advisors

The trustees during the financial year and up to and including the date the report was approved were: Name Position Dates

Position Dates Katy Taylor Chair Emma Szyczak Secretary Sarah Hey Treasurer Carly Durrans Kimberley Szyczak

Charity number

1037861

Charity number 1037861 Registered in England and Wales Registered and principal address Bankers Christ Church Centre Lightcliffe Unity Trust Bank Leeds Road Nine Brindley Place Lightcliffe Birmingham Halifax B1 2HB HX3 8NU

Independent examiner

Katy Sargeant ACA

West Yorkshire Community Accountancy Service CIO

Stringer House 34 Lupton Street Leeds LS10 2QW

Structure, governance and management

The charity is governed by a constitution adopted on 27 October 1993, amended on 2 April 2007 and 18 January 2012.

Method of recruitment and appointment of trustees

The trustees of the charity are appointed by the members at the AGM.

Early Years @ Lightcliffe

Trustees' report (continued) for the year ended 31 August 2023

Objectives and activities

The charity's objects

To enhance the development and education of children primarily under statutory age by encouraging parents to understand and provide for the needs of their children through community groups and by:

a) offering appropriate play, education and care facilities, family learning and extended hours groups, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability;

b) encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs in the local areas;

c) instigating and adhering to and furthering the aims and objects of the Pre-school Learning Alliance.

The charity's main activities

To provide for children aged 2 to 5 Pre-school education and an after school club.

Public benefit statement

In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular raising the standard of education for local children.

Achievements and performance

We have continued to expand and improve the provision, taking on more families and updating more areas of the building.

Financial review

The net income for the year was £73,166, all on unrestricted funds.

Reserves policy

The charity's free reserves, excluding fixed assets, at the year end were £124,330.

The financial security of Early Years@Lightcliffe is important, therefore money will be kept in reserve for unforeseen circumstances. We aim to maintain a level of reserves to assist us if income falls below expected levels or to assist our recovery should we encounter a business disaster.

We need reserves in order to:

Meet redundancy liabilities should the pre-school have to close.
Ensure there are sufficient cash reserves in the current account to cover day to day running costs for a period of one month, with an aim to increase this to three months.
Ensure continuity of service provision by:
Meeting unexpected costs such as cover for illness or maternity leave, etc.
Covering running costs during periods of lower income (e.g. while adjusting to policy changes or following falls in fundraising).
Replace equipment as it wears out and carry out necessary building upgrades/maintenance.

Based on the above we have calculated that our reserves should be between £49,900 and £101,600. The trustees recognised the reserves at year end were slightly in excess of the stated policy but are comfortable with this additional buffer to cover any unexpected costs in the current uncertain economic climate.

This policy is reviewed on an annual basis.

Approved by the board of trustees on 26/02/2024

Sarah Hey (Trustee)

Early Years @ Lightcliffe

Independent examiner's report to the trustees of Early Years @ Lightcliffe

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2023, which are set out on pages 5 to 11.

Responsibilities and basis of report

As the charity trustees 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 charity's accounts as carried out under section 145 of the 2011 Act. 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

Since the charity's gross income exceeded £250,000 your examiner must be a fellow of a body listed in section 145 of the 2011 Act.

I confirm that I am qualified to undertake the examination because I am a fellow of ICAEW which is one of the listed bodies.

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 Charities Act;

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.

Katy Sargeant ACA

02/04/2024

West Yorkshire Community Accountancy Service CIO

Stringer House 34 Lupton Street Leeds LS10 2QW

Early Years @ Lightcliffe

Statement of Financial Activities

(including summary income and expenditure account) for the year ended 31 August 2023

Notes 2023 Unrestricted funds £ Income from: Grants (2) - Fees 192,215 Fundraising 3,115 Room Hire 9,160 Bank interest 626 Other income 60 Total income 205,176 Expenditure on: Salaries NI and pensions (3) 107,062 Casual staff - Educational materials, activities and trips 310 Food 7,114 Stationery and administration fees - Telephone 165 Independent Examination - Training - Uniforms - Advertising and recruitment costs - Repairs and maintenance - Fundraising expenses 796 Bank charges - Computer consumables - Toddler expenses - Cleaning - Equipment - Membership and subscriptions - Insurance - Mortgage interest repayments 12,022 Utilities - Depreciation 3,995 Staff gifts 546 Total expenditure 132,010 Net income / (expenditure) 73,166 Fund balances brought forward 200,742 Fund balances carried forward (4) 273,908	2023 Restricted funds £ 146,251 - - - - - 146,251 93,254 - 2,064 - 917 871 1,134 1,212 1,921 270 9,877 - 374 270 69 4,037 318 2,937 2,928 8,355 10,182 5,261 - 146,251 - - -	2023 Total funds £ 146,251 192,215 3,115 9,160 626 60 351,427 200,316 - 2,374 7,114 917 1,036 1,134 1,212 1,921 270 9,877 796 374 270 69 4,037 318 2,937 2,928 20,377 10,182 9,256 546 278,261 73,166 200,742 273,908	2022 Total funds £ 107,129 141,782 4,526 8,731 59 347 262,574 160,200 2,028 7,695 5,661 494 915 1,080 780 1,112 3,162 3,867 1,576 398 270 - 7,144 144 2,967 2,662 12,444 6,884 7,294 935 229,712 32,862 167,880 200,742

All incoming resources and resources expended derive from continuing activities.

Early Years @ Lightcliffe

Balance sheet

as at 31 August 2023 2023 Unrestricted £ Fixed assets Tangible assets (5) 396,244 Total fixed assets 396,244 Current assets Debtors and prepayments (6) 9,645 Cash at bank and in hand (7) 133,124 Total current assets 142,769 Current liabilities: amounts falling due within one year Creditors and accruals (8) 18,439 Total current liabilities 18,439 Net current assets / (liabilities) 124,330 Total assets less current liabilities 520,574 Creditors: amounts falling due after one year (9) 246,666 Net assets 273,908 Funds Unrestricted funds 273,908 Restricted funds - Total funds 273,908	2023 Restricted £ - - - - - - - - - - - - - -	2023 Total £ 396,244 396,244 9,645 133,124 142,769 18,439 18,439 124,330 520,574 246,666 273,908 273,908 - 273,908	2022 Total £ 385,882 385,882 7,675 100,452 108,127 42,343 42,343 65,784 451,666 250,924 200,742 200,742 - 200,742

The financial statements were approved by the board of trustees on 26/02/2024

Sarah Hey (Trustee)

Notes to the accounts

Early Years @ Lightcliffe

for the year ended 31 August 2023

1 Accounting policies

Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and with the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102. There has been no change to the accounting policies since last year.

No changes have been made to the accounts for previous years.

Going concern

The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, if it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.

Grants and donations

Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.

Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.

Expenditure and liabilities

Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.

Taxation

As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

Tangible fixed assets

Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: Freehold land: nil Freehold buildings: over 50 years Furniture and Fittings: over 4 years

Pensions

The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

Early Years @ Lightcliffe

Notes to the accounts continued

for the year ended 31 August 2023

2 Grants and donations Calderdale Met. Borough Council (CMBC) Other donations 3 Staff costs and numbers Gross salaries Social security costs Employment allowance Pensions	2023 Unrestricted funds £ - - -	2023 Restricted funds £ 146,251 146,251	2023 Total funds £ 146,251 - 146,251 2023 £ 192,454 10,899 (6,246) 3,209 200,316	2022 Total funds £ 106,879 250 107,129 2022 £ 156,233 7,328 (5,516) 2,155 160,200

The average number of employees during the year was 13.2, being an average of 9.3 full time equivalent (2022: 11, 7.2 FTE). There were no employees with emoluments above £60,000.

Defined contribution pension scheme Costs of the scheme to the charity for the year Amount of any contributions outstanding at the year end 4 Restricted funds Balance b/f Incoming £ £ CMBC - Early Education Funding - 135,127 CMBC - Inclusion Funding - 11,124 - 146,251 Fund name Purpose of restriction	Outgoing £ 135,127 11,124 146,251	2023 £ 3,209 - Transfers £ - - -	2022 £ 2,155 331 Balance c/f £ - - -

CMBC - Early Education Funding CMBC - Inclusion Funding

For the supply of free early years provision for 2 to 4 year olds.

To support early years providers in meeting the needs of individual children with Special Educational Needs.

Early Years @ Lightcliffe

Notes to the accounts continued

for the year ended 31 August 2023

5 6 7 8	Tangible assets Cost £ £ £ At 1 September 2022 - 5,176 300,000 Additions 19,618 - - At 31 August 2023 19,618 5,176 300,000 Depreciation At 1 September 2022 - 1,294 18,000 Charge for year 1,962 1,294 6,000 At 31 August 2023 1,962 2,588 24,000 Net book value At 31 August 2023 17,656 2,588 276,000 At 31 August 2022 - 3,882 282,000 Debtors and prepayments Debtors Prepayments Cash at bank and in hand Cash at bank Cash in hand Creditors and accruals Bank loans and overdrafts Amounts received on account for contracts / performance related grants Accruals Taxation and social security Other creditors Freehold Buildings Fixtures and Fittings Building Improveme	£ 100,000 - 100,000 - - - 100,000 100,000 2023 £ 6,596 3,049 9,645 2023 £ 133,112 12 133,124 2023 £ 16,193 - 1,134 1,112 - 18,439 Freehold Land	Total £ 405,176 19,618 424,794 19,294 9,256 28,550 396,244 385,882 2022 £ 4,945 2,730 7,675 2022 £ 100,440 12 100,452 2022 £ 15,451 24,880 1,080 581 351 42,343

Early Years @ Lightcliffe

Notes to the accounts continued

for the year ended 31 August 2023

9 Creditors: amounts falling due after one year Bank loans	2023 £ 246,666 246,666	2022 £ 250,924 250,924

10 Related party transactions

Trustee expenses

No trustee received any expenses during this year or the previous year.

Trustee remuneration and benefits Name of trustee or related party Legal authority Carly Durrans Governing document	2023 £ 2,144 2,144	2022 £ 1,838 1,838

Reason for remuneration

Carly is a parent member trustee and is paid for bookkeeping work. No trustee received any other remuneration or benefit during this or the previous year.

Remuneration and benefits received by key management personnel

The total employee benefits received by key management personnel were £42,850 (previous year: £38,811).

Other transactions with trustees or related parties Managed Water Services Husband of a trustee Legionella risk assessment Relationship to charity Description of transaction Name of trustee or related party	2023 £ 280 280	2022 £ - -

Early Years @ Lightcliffe

Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 August 2023

2023 2022 Unrestricted Unrestricted funds funds £ £ Income Grants - - Fees 192,215 141,782 Fundraising 3,115 4,526 Room Hire 9,160 8,731 Bank interest 626 59 Other income 60 347 Total income 205,176 155,445 Expenditure Salaries NI and pensions 107,062 78,473 Casual staff - 1,075 Educational materials, activities and trips 310 4,156 Food 7,114 5,661 Stationery and administration fees - 241 Telephone 165 485 Independent Examination - 572 Training - 413 Uniforms - 589 Advertising and recruitment costs - 1,676 Repairs and maintenance - 2,050 Fundraising expenses 796 1,576 Bank charges - 211 Computer consumables - 86 Toddler expenses - - Cleaning - 3,786 Equipment - 76 Membership and subscriptions - 1,573 Insurance - 1,411 Mortgage interest repayments 12,022 6,595 Utilities - 3,649 Depreciation 3,995 7,294 Staff gifts 546 935 Total expenditure 132,010 122,583 Net income / (expenditure) 73,166 32,862 Fund balances brought forward 200,742 167,880 Fund balances carried forward 273,908 200,742	2023 Restricted funds £ 146,251 - - - - - 146,251 93,254 - 2,064 - 917 871 1,134 1,212 1,921 270 9,877 - 374 270 69 4,037 318 2,937 2,928 8,355 10,182 5,261 - 146,251 - - -	2022 Restricted funds £ 107,129 - - - - - 107,129 81,727 953 3,539 - 253 430 508 367 523 1,486 1,817 - 187 184 - 3,358 68 1,394 1,251 5,849 3,235 - - 107,129 - - -	2023 Total funds £ 146,251 192,215 3,115 9,160 626 60 351,427 200,316 - 2,374 7,114 917 1,036 1,134 1,212 1,921 270 9,877 796 374 270 69 4,037 318 2,937 2,928 20,377 10,182 9,256 546 278,261 73,166 200,742 273,908	2022 Total funds £ 107,129 141,782 4,526 8,731 59 347 262,574 160,200 2,028 7,695 5,661 494 915 1,080 780 1,112 3,162 3,867 1,576 398 270 - 7,144 144 2,967 2,662 12,444 6,884 7,294 935 229,712 32,862 167,880 200,742