**REGISTERED COMPANY NUMBER: 03375306 REGISTERED CHARITY NUMBER: 1063463**
## **KINGS HEATH PLAYCARE**
**Report of the Trustees and**
**Unaudited Financial Statements for the Year Ended 31 August 2020**
**Kings Heath Playcare**
**Contents of the Financial Statements for the Year Ended 31 August 2020**
||Page|
|---|---|
|Report of the Trustees|1 to 3|
|Independent Examiner’s Report|4|
|Statement of Financial Activities|5|
|Balance Sheet|6|
|Notes to the Financial Statements|7 to 10|
|Detailed Statement of Financial Activities|11|
**Kings Heath Playcare**
## **Report of the Trustees for the Year Ended 31 August 2020**
The trustees present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
## **OBJECTIVES AND ACTIVITIES**
## **Principal activity and constitution**
The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 23 May 1997.
The principal object of the company is to provide wraparound and holiday childcare facilities for primary school children, and the training and development of childcare staff.
## **Method of appointment or election of trustees**
Kings Heath Playcare is governed by a Board of Trustees.
Under the requirements of the Articles of Association the trustees are appointed for an unlimited term. However, one third of them are required to retire by rotation at the Annual General Meeting at which they may be re-elected. The Board of Trustees may appoint trustees to fill vacancies or additional trustees, but they must stand for re-election at the following Annual General Meeting.
New trustees may be appointed by the charity by ordinary resolution at the Annual General Meeting in accordance with the notice required by the Articles of Association, or if recommended by the Board of Trustees.
Due to the nature of the charity’s work, the trustees are generally parents of children attending the scheme or are employees of Kings Heath Primary School.
The trustees seek to ensure that the Board of Trustees reflects the needs of the scheme where possible, which includes trustees with experience of working with children and child protection, as well as trustees with traditional business skills. The Board of Trustees also aim to ensure that a senior member of the leadership team at Kings Heath Primary School is represented on the Board. In the event of particular skills being lost due to retirements, individuals are approached to offer themselves to serve as trustees.
All trustees give their time voluntarily and received no benefits or expenses from the charity other than those disclosed in Note 3.
Due to the Covid-19 pandemic no AGM could be held before the accounts were finalised. As a result, all trustees remain until an AGM can be held.
## **ACHIEVEMENT AND PERFORMANCE**
The scheme has continued to operate at close to capacity, with waiting lists existing for much of the year even with increased numbers of places offered at both infant and junior sites. Additional one off funding has been obtained which enabled Playcare to provide support for children with additional needs during the summer holidays. Funding opportunities will continue to be pursued. Training has continued during the year with Playcare taking advantage of free training from the Local Authority and paying fo r additional courses as necessary. Staff training included training around ‘feeling valued’ as an employee.
This year Playcare recruited three new members of staff in the roles of Bank Play Worker’s. Their support has been fundamental in the running of provisions during Covid-19, where we have succeeded in remaining open and delivering a provision in crucial times to these parents that identified as key workers.
Our organisation received an interim inspection from Ofsted, where the inspector was pleased with the implemented actions following on from our previous inspection.
Staff have received updated mandatory training related to first-aid, safeguarding and child protection and food hygiene. The staff will be carrying out further training to enhance their skills and knowledge in the sector.
These activities are undertaken for the public benefit. The trustees have given due consideration to the Charity Commission’s guidance on Public Benefit requirement under the Charities Act 2011. Both the infa nt and junior sites benefitted from cash from the reserves in order to buy new games and toys, which were chosen by the children.
Page 1
**Kings Heath Playcare**
## **Report of the Trustees - continued for the Year Ended 31 August 2020**
## **FINANCIAL REVIEW**
Total income for the year was £216,027 (2019: £224,895) of which £216,027 was unrestricted (2019: £224,895) and £Nil was restricted (2019 £Nil).
Total funds carried forward at the year end were £159,681 (2019: £154,425) of which £159,681 was unrestricted (2019 £154,425) and £Nil were restricted (2019: £Nil).
## **Going concern**
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
## **Reserves policy**
The charity maintains unrestricted reserves of about 3 to 6 months expenditure. The trustees believe that this will enable the charity to continue operations in the event of a significant drop in income and would be sufficient to cover winding up costs in the event that the charity decided to stop operating.
Page 2
**Kings Heath Playcare**
**Report of the Trustees - continued for the Year Ended 31 August 2020**
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered charity number**
1063463
## **Registered office address**
Kings Heath Primary School Valentine Road Kings Heath Birmingham B14 7AJ
## **Trustees**
Ms L Southworth (resigned 1 May 2020) Ms C Manzotti Ms E West Mr D Moore Ms L Tattum Ms R Wenban-Smith (appointed 1 January 2020, resigned 1 May 2021)
## **Company secretary**
Mr D Moore
## **Independent examiner**
Sian Kelly ACMA Inform Accounting Limited 4 Emmanuel Court Reddicroft Sutton Coldfield West Midlands B73 6AZ
## **STATEMENT OF TRUSTEES RESPONSIBILITIES**
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees on 27[th] August 2021 and signed on its behalf by:
Ms L Tattum - Treasurer
Page 3
**Independent Examiner’s Report to the Trustees of Kings Heath Playcare**
We report on the accounts for the year ended 31 August 2020 set out on pages 5 to 11.
## **Respective responsibilities of trustees and examiner**
The charity’s trustees (who are also the directors for the purposes of company law) 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 Charit ies Act 2011 (the 2011 Act)) and that an independent examination is required.
Having satisfied ourselves that the charity is not subject to audit under company law and is eligible for independent examination, it is our responsibility to:
- examine the accounts under Section 145 of the 2011 Act
- to follow the procedures laid down in the General Directions given by the Charity Commission (under Section 145(5)(b) of the 2011 Act); and
- to state whether particular matters have come to our attention.
## **Basis of the independent examiner’s report**
Our examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the 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 trustees concerning 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 statements below.
## **Independent examiner’s statement**
In connection with our examination, no matter has come to our attention:
- (1) which gives us reasonable cause to believe that, in any material respect, the requirements
- to keep accounting records in accordance with Section 386 and 387 of the Companies Act 2006; and
- to prepare accounts which accord with the accounting records, comply with the accounting requirements of Sections 394 and 395 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met; or
- (2) to which, in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Sian Kelly ACMA Inform Accounting Limited 4 Emmanuel Court Reddicroft Sutton Coldfield West Midlands B73 6AZ
27[th] August 2021
Page 4
**Kings Heath Playcare**
## **Statement of Financial Activities for the Year Ended 31 August 2020**
|Unrestricted
funds
Not
es
£
**INCOME FROM**
Fees from playcare provision
194,632
Awards and grants
3,384
Bank interest received
52
Other income
17,959
**Total**
216,027
**EXPENDITURE ON**
Charitable activities
2
207,357
Governance costs
3,414
**Total**
210,771
**NET INCOME/(EXPENDITURE)**
5,256
**Transfers between funds**
-
**Net movement in funds**
5,256
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
154,425
**TOTAL FUNDS CARRIED FORWARD**
159,681|2020
2019
Restricted
funds
Total funds
Total funds
£
£
£
-
194,632
221,982
-
3,384
2,870
-
52
43
-
17,959
-
-
216,027
224,895
-
207,357
212,302
-
3,414
1,752
-
210,771
214,054
-
5,256
10,841
-
-
-
-
5,256
10,841
-
154,425
143,584
-
159,681
154,425|
|---|---|
## **CONTINUING OPERATIONS**
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 5
## **Kings Heath Playcare**
## **Balance Sheet At 31 August 2020**
|Unrestricted
funds
Not
es
£
**FIXED ASSETS**
Tangible assets
5
595
**CURRENT ASSETS**
Debtors
6
8,372
Cash at bank
164,506
172,878
**CREDITORS**
Amounts falling due within one year
7
(13,792)
**NET CURRENT ASSETS**
159,086
**TOTAL ASSETS LESS CURRENT LIABILITIES**
159,681
**NET ASSETS**
159,681
**FUNDS**
9
Unrestricted funds:
General fund
Restricted funds
**TOTAL FUNDS**|2020
2019
Restricted
funds
Total funds
Total funds
£
£
£
-
595
-
-
8,372
11,947
-
164,506
184,137
-
172,878
196,084
-
(13,792)
(41,659)
-
159,086
154,425
-
159,681
154,425
-
159,681
154,425
159,681
154,425
-
-
159,681
154,425|
|---|---|
For the financial year ending 31 August 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
## **Trustees responsibilities**
The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
The trustees acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees on 27[th] August 2021 and were signed on its behalf by:
Ms L Tattum - Treasurer
The notes form part of these financial statements
Page 6
continued...
**Kings Heath Playcare**
**Notes to the Financial Statements for the Year Ended 31 August 2020**
## **1. ACCOUNTING POLICIES**
## **Statutory information**
Kings Heath Playcare is a charitable company limited by guarantee and is incorporated in the United Kingdom (England and Wales). The registered office address and operational address is Kings Heath Primary School, Valentine Road, Kings Heath, Birmingham, B14 7AJ.
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.
## **Income**
Income is brought into account when it is more likely than not that the economic benefit of the income will accrue to the charity.
## **Expenditure**
This is recognised when a liability is incurred, or a constructive obligation arises, that results in the payment being unavoidable. Liabilities are recognised as soon as an outflow of economic benefit is considered more likely than not under the legal or constructive obligation committing the charity to pay out resources.
## **Governance costs**
These are the costs associated with the general running of the charity and its strategic management, rather than the costs of its charitable activities and day to day management.
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Tangible fixed assets and depreciation**
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
– Computer equipment 33.3% straight line
## **Fund accounting**
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
## **Public benefit entity**
The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy/note.
## **Going concern**
Based on the monetary assets and human resources available at 31 August 2020, the trustees believe that the charity is a going concern.
## **VAT**
Since the charity is not VAT registered, all input VAT is charged with the expenses to which it refers.
Page 7
**Kings Heath Playcare**
## **Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **2. EXPENDITURE ON CHARITABLE ACTIVITIES**
|Staff related costs
External training
Facilities
Legal, professional and other outside services
Financial and insurance
Bad debts
Supplies
Activities, trips, games and play equipment
Marketing and website
Administration expenditure|2020
£
173,236
-
12,645
11,656
1,204
-
4,721
2,177
294
4,838
210,771|2019
£
154,555
160
24,366
9,398
1,595
1,631
7,747
6,644
781
7,177
214,054|
|---|---|---|
## **3. TRUSTEES' REMUNERATION AND BENEFITS**
During the year ended 31 August 2020 there were no trustee expenses (2019: Nil).
## **4. STAFFING COSTS**
|Salaries and wages
Social security costs
Employers pensions|2020
£
169,639
2,116
1,481
173,236|2019
£
149,499
1,717
3,339
154,555|
|---|---|---|
The average number of employees during the year was 20 (2019: 13) of which 8 was full time (2019: 1).
The charity has an Auto Enrolment Pension Scheme which opened on 1 April 2017.
Page 8
**Kings Heath Playcare**
**Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
|**5.**
**TANGIBLE FIXED ASSETS**
**COST OR VALUATION**
At 1 September 2019
Additions
At 31 August 2020
**DEPRECIATION**
At 1 September 2019
Provided during the year
At 31 August 2020
**NET BOOK VALUE**
At 31 August 2020
At 31 August 2019
**6.**
**DEBTORS**
Trade debtors–amounts owed for playcare fees
Prepayments and accrued income
Other debtors|2020
£
7,825
547
0
8,372|Fixtures &
Fittings
£
-
827
827
-
232
232
595
-
2019
£
10,878
1,069
0
11,947|
|---|---|---|
||||
||||
||||
||||
||||
||||
## **7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Overpayments and amounts received in advance from parents
Taxation and social security
Accruals and deferred income
Other creditors|2020
£
-
-
3,843
9,474
475
13,792|2019
£
1,557
28,555
659
9,747
1,141
41,659|
|---|---|---|
Page 9
**Kings Heath Playcare Notes to the Financial Statements - continued for the Year Ended 31 August 2020**
## **8. SHARE CAPITAL**
The company is limited by guarantee and does not have any share capital.
In the event of the company being wound up the members would be required to contribute an amount not exceeding £1.
## **9. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
**Restricted funds**
None
**TOTAL FUNDS**
Net movement in funds, included in the above are
**Unrestricted funds**
General fund
**Restricted funds**
None
**TOTAL FUNDS**|At|01.09.19
Net movement
in funds
Transfers
between funds
At 31.08.20
£
£
£
£
154,425
5,256
-
159,681
-
-
-
-
154,425
5,256
-
159,681
follows:
Incoming
esources
Resources
expended
Gains and
losses
Movement in
funds
£
£
£
£
216,027
(210,771)
-
5,256
-
-
-
-
216,027
(210,771)
-
5,256|
|---|---|---|
||||
||as
r||
## **10. CONTINGENT LIABILITIES**
As at 31 August 2020 there were no contingent liabilities (2019: Nil).
## **11. RELATED PARTY TRANSACTIONS**
Kings Heath Playcare is based at Kings Heath Primary School and takes all its term time pupils from the school. Ms S Hanson is the Headteacher of the school.
Kings Heath Primary School charges the charity for a share of utility and caretaking costs on a regular basis. In addition to this it charges for ad hoc hall hires, copying and equipment purchased via the school. Costs during the year were £NIL (2019: £11,099).
Page 10
**Kings Heath Playcare**
## **Detailed Statement of Financial Activities for the Year Ended 31 August 2020**
|**INCOME**
**Incoming resources from charitable activities**
Fees from playcare provision
Awards and grants
Bank interest received
Other income
**Total incoming resources**
**EXPENDITURE**
**Charitable activities**
Supplies
Activities, trips, games and play equipment
Salaries and wages
Social security costs
Employers pensions
Staff training
Rent and rates
Light and heat
Insurance
Cleaning
Repairs and renewals
Computer running costs
Printing, postage and stationery
Marketing and website
Telephone
Sundry expenses
Legal and professional fees
Licences and subscriptions
Bank charges
Bad debts
Depreciation
**Governance costs**
Accountancy
**Total resources expended**
**Net income/(expenditure)**|2020
£
194,632
3,384
198,016
52
17,959
216,027
4,721
2,177
169,639
2,116
1,481
-
12,632
-
490
13
-
273
1,473
294
1,856
695
8,242
309
714
-
232
207,357
3,414
210,771
5,256|2019
£
221,982
2,870
224,852
43
-
224,895
7,747
6,644
149,499
1,717
3,339
160
13,255
11,099
506
13
-
168
979
781
1,921
3,048
8,105
602
1,088
1,631
-
212,302
1,752
214,054
10,841|
|---|---|---|
This page does not form part of the statutory financial statements
Page 11