SANDWELL & DISTRICT WEST INDIAN COMMUNITY ASSOCIATION (A Company Limited by Guarantee) FINANCIAL STATEMENrs for the 6 months to 31 March 2024 Company Number 3609502 Charlty Number 1072523
SANDWELL & DISTRICT WEST INDIAN COMMUNITY ASSOCIATION (A Company Limited by Guarantee) INDEX 31 March 2024 Page .tTrlFORMATION DIREC'foRS REPORT 2to4 STATEMENT OF FINANCIAL ACTIVITIES BALANCE SHEET NOTES TO THE FANCIAL STATEMENTS 7t012 INDEPENDENT EXAMINERS REPORT 13
SANJ DWELL & DISTRICT WEST INDIAN COMTrttrNrrY ASSOCIATION (A Company Limited by Guarnntee) INFORMATION as at 31 March 2024 DIRECTORS: Mr N Davis ( Tre&8urer ) Mr Cecil Richard8 Mr Mark Cameron NURSERY MANAGER ADMIN AND OFFICE MANAGER Claire Badger Violet Coley REGISTERED OFFICE: 69 Beeches Road West Bromwich West Midlands B70 6HQ COMPANY REGISTERED NUMBER: 3609502 CHARITY REGISTERED NUMBER: 1072523 BANKERS: Lloyds Bank plc University of Birniingham Branch Arial House 2138 Coventy Rd Birniinglwn B26 3JW SOLICITORS: Pearce Legal 2 The Square Solihull West Midlands B913SQ INDEPENDENT EXAMfNER G.P. Brookes FCA BS¢ Chartered Auntant 130 Wombourne Park Wombourne S Staffs WV5 OLY Page I
SANDWELL & DISTRICT WEST INDIAN COMMUNITY ASSOCIATION {A CompAny Limited by Curnt¢¢) 31 March 2024 DIRECTORS REPORT The Directors present their report and the fInancial statements for the 6 Months ended 31 March 2024 Strueture Covernan¢e and MAnagement Sandwell & District West Indian Community Associations 8 eharitable company limited by guarantee without having a Share Capital. The bo8rd of directors usually meet quarterly* are responsil)le for the ultimate strategic decisions having regard to advice from the Nursery Staff. Trustee/Direetor Induetion and trainlng New Trustse/Directors are chosen by invitation in order that the ¢harity may have repreyentation from a wide range of agencies. We match our skill requirements with knowled8e and exp¢rien¢e and where ther¢ ar¢ gaps w¢ offer appropriate trdining. There are no specific policies aud procedures for induction / training of directors. However they are inducted accordi08 to individual requirements. Copies of th¢ Companys Memorandum and Articles publications are supplied, along with the charitys polices and procedures and copies of recent board meeting minutes and the latest Ofsted Report. Individual Tnjstees rol¢s and responsibilities are negotiatsd with all the tnistees 80 that their roles complem¢nt ¢ach other. Objeetlves and Aetfvitl The principa] activity of the Company remains to be the advan¢ement of the Community Provision In the area of Sandwell with the provision of facilities for the daily care, recreation and education of children under the age of 8 whose parents or guardian5 are resident in and around the Sandwell ar¢& Achievements and Performan¢¢ During the year the nursery the staff and management team who worked together to ensure that SADWtCA maintained a consistently high stsndard of care that goes above and beyond the mininium requirements of the EYFS. This resulted in another'Good' Rating from Ofsted when the nursery was inspected in February 2020. o Became an approved Sandwell HAF (Holiday Activities & Food) provider. This funding enabled us to deliver free holiday playscheme places to 23 ¢hildren per day (aged 4-7yTS) over the main school holidays. Next year we plan to extend this free provision to cover the 3 half terni holidays, Our Annual Open Day was held in August 2024 and resulted in 12 new starters in September. o Sponsored Walk held at Dudley Zoo & ctle raised over £300 o Maintained staffing team and trained 2 cbild¢are apprentices. o As at 30103124 occupancy levels were at 650/0 and increasing steadily. o Maintained our 515 Rating from EnviroDmental Health (March 2024) The nursery is comprehensively resourced with the most up to dat¢ educational resources and staff have received th¢ most up to date training provided by the local Fwly Years & Childcare Unit. 2 staff are currently studying for their Level 5 Diploma for Early Years Seaior Managers and Nursery & Deputy Manager5 have completed the DFe Experts and Mentor5 Programme to develop best practice in the nursery. S¢r¢eniDg has identified an incr¢&8c in children requirin8 spee¢h and language $upporL The Wellcome Screening belps us to scre¢n their speech and language skills and operate$ on a traffic light system. Green - No Interventio Amber- provide extra suppoQ Red- Consider referral to Speech & Language Therapy. 800/0 of children identified as needing additional support made improvement and moved from either Red to Amber or Amber to Green. Children with more complex medical or behavioural needs can get support through the Early Intervention Graut that can provide up to 15 hrs a week of I to l Support. 2 thildren are Currently in receipt of the Grant Page 2
SANDWELL & DISTIUCT WEST INDIAN COMMUNITY ASSOCIATION (A Company Limiled by Guarnntee) 31 March 2024 DIRECTORS REPORT Future Plans The organisation will continue to undertake the necessary ongoing restructuring to ensure a more effective childcare provision. This resulted in the nursery maintaining its Ofsted rating of GOOD when it was inspected in February 2020. This rating is essential for Sadwica in light of growing local competition in the local childcare market. The organisation has continued to strenen the Management Committee through newly appointed Trustees, Parent Reps and the appointment of a new company secretary. We also continue to provide the monitoring reports to Sandwell Council as part of our SLA. Funding from Sandwell Council which will end in March 2025 $0 the main objective is to plug that gap in funding. Management are constantly assessing potential funders to ensure we fit their criteria and fimding bids are regularly being sent out. We are working to update our online profile and use social media to best promote our range of childcare services. With the success of our HAF (Holiday Activities & Food) provision, we will be looking to sexure funding to extend this provision to cover the 3 half terni holidays. Funding has been sought to open on Saturdays with a morning and afternoon creche. with online and in person training courses and a walking group taking place for parents. Most Family Hubs are planning to open on the first Saturday of each month. however the one on Beeches Rd will not be opening. It is also hoped that with the dUal expansion of the free Ghildcare entitlement for working parents, we will be able to attract sufficient numbers to enable the nursery to become self financin which has alway8 been the aim of the organisation. SiglllficaDt contrlbutions of volunteer8 Our volunteer base, is flourishing and local people are again reaping the benefits of in-house training. We are seeing the benefits of spending more time involving volunteers at a committed level. Volunteers gained valuable experience in the areas of childcare, food preparation, Business Admin and maintenance. B¢ing able to provide valuable experience to volunteers not just in the field of childcare is something we hope to continue at this level. We have trained 3 apprentic¢s and employed l on & pernianent ba313 once they completed their placement. We have also worked closely with local schools and colleges to provide l J students with both short and long tenn work plements for those interested in childcare a8 a career. Financial Revlew I'his 6 months reported peri is relatively proportional compared with the previo8 12 months accounts. Very careful financial management h&y resulted in a small surplus of £3,312 Cp £8,670 deficit for 2023). With increased take up of nursery places r&8ulting in increased fees a small surplw has resulted enabling the charity to be in a position to start a programme of HMRC PAYE payments of previous loss making periods outstanding amounts . The early years support prOe enables management to anticipate better the levels of income and therefore staff retention and related costs required, however this has only just started to translate into net profitability. It is now hoped that this results in early years funding levels plus the L A statutory on going grants are retained so not setting SADWICA back as it is not yet certain that the vital manageable 11 cost recovery basis for the day to day costs will keep this community provision in place , Directors and management input been hamper¢d in effectiveness over many years with significant amounts of time needed to seek additional external income to supplement this virtually unworkable balance of fee and grant income streams needed for the required increasing regulatory costs of staff, direct costs and overheads to ensure the medium and long terni future of this. what is an absolutely invaluable local community faoility. Director8 The Directors set out on page I have held office for the whole of the 6 months to 31 March 2024 to the date of this report unless otherwise stated. Page 3
SANDWE.LL & DISTRIcf WEST INDIAN COMMUNITY ASSOCIATION (A Company Limited by Guarantee) 31 March 2024 DIRECTORS REPORT (continued) Reserves Policy Currently the company's reserves Present restricted capital funds received from various funders in previous years. Ideally the directors consider the following to be a basis for a cash backed designated reserve of £20,000 that should be set on one side for a possible winding up contingency fund. Costs inolude senior staff redundan¢y (estimated at 3 months) £7,000, non senior staff redundancy (I month) £9,000, overh¢ads (approximatsly I month) £4,000. Sadwica has not reached a trading or grant negotiating position to be able to build in a sufficient Jevel of surplus within its in¢ome stream and to achieve this goal. Risk Management is an on going matter reassessed at trustees zneetings. It is considered that the main risks are relatsd to current local market conditions and the resulting reduced o¢¢upancy l¢v¢ls together with the general shortfall of grants to und¢rpin a community provision like this in an ¢conomically deprived area. Direetors RespoD8ibilitle8 Company Law required the Directors to prepare financial statements for each financial period which give a true and fair view of the state of the Company as at the end of the financial period and of the income and expenditure of the Company for the year ended on that date. In preparing those financial statements, suitsble accounting policies have been used, observed the methods and principl¢s within the Chariti¢s SORP 2019 (FRS 102) and to the best of the Directors knowledge and belief, by r¢ference to reasonable and prudent judgments and estimates and applied consistently. The Directors are also required to indicat¢ where the fmancial statements ar¢ prepared on the basis that the Company is a going concern . The Directors are responsible for ensuring that arrangements are made for keeping proper books of account with resp¢¢t to the Company's transactions and its assets and liabilities and for maintsining a satisfactory system of control over the Compan5 books of account and transactions. The Directors are also responsible for ensuring that arrangements are made to safeguard the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Directors on ands ed on its behalf by 2024 Director ( PRINT NAME)...... .. Page 4
SANDWELL & DISTRICT WEST INDIAN COMMUNITY ASSOCIATION (A Company Limited by Guarantee) Statement of Financial Activiti ( iJAcludes summary of income and expenditure) 31 Iktarch 2024 UnrtrACted Funds 2024 RtrACted Funds 2024 Totsl Funds 2024 Total Funds 2023 Notes 6 months 6 months 6 months 12 months Income Charxtable Activities Community Day Nursery Local Authority SLA Nursery fees Holiday and events funding Early Intervention grant Donations 18,090 89,399 18,090 89,399 3,393 3,361 3,307 117,550 45,227 165,096 9,916 3,231 4,420 227,890 3,393 3.361 1,995 8,749 1,312 108,801 Investment income Bank Interest 14 14 Total Ineome 108,815 8,749 117.564 227,890 Expenditure Charitable Activities Community Day Nursery 105,503 8,749 114,252 236.560 Total Expenditure 105,503 8,749 114,252 236,560 Net Income 3,312 3,312 (8,670) Reconciliation of funds Total funds brought forward (12.215) 112,996 100,781 109.451 Total funds carried forward (8,903) 112,996 104,093 100,781 This charitable company's income and expenditure all relate to continuing operations. Page 5
SANDWELL & DISTRICT WEST INDIAN COMMUNrrY (A Company Limited by Guarnntee) number 3609502 BALANCE SHKET AS AT 31 March 2024 6 months 2024 12 months 2023 Notss FIXED ASSETS Tangible Assets 115,347 115,582 115,347 CURRENT ASSETS 115,582 Debtors Bank & Cash Totsl 3,244 141 3.385 4.250 487 4,737 Creditors . Amounts falling due Within One year 14,639 19,538 NET CURRENT ASSETS (11,254) (14,801) ET ASSETS 104,093 100,781 Funds Restricted Funds Capital funds 11 112,996 112,996 Unrestricted Funds 11 (8,903) (12,215) TOTAL 104,093 100,781 The company was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. The directors acknowlcdge their responsibilities for complying with the requirements of th¢ Companies Act with respect to accounting Twords and the preparation of accounts. These accounts have b¢¢n prepar¢d in accordance with the provisions applicabl¢ to small companies subject to the small companies r¢gime and in accordance with FRS102 and Charities SORP 2019. Signed and a proved on the behalf of the Board on 2024 Page 6
SANDWELL & DISTRICT WEST INDIAN cOMlumTy ASSOCIATION (A Company Limlted by Guarantee) Notes to the Accounts 6 months to 31 March 2024 (l) A¢countiDg Policies a) Basis of accounting The charity constitutes a public ben¢fit entity as def¢d by FRS102. The financial statements have been prepared in accordance with AoUnting and Reporting by Charities: Statement of Recommended Practi¢¢ (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) second edition published October 2019, the Charities Act 2011 the Companies Aet 2006 and UK Generally Accept¢d Practice. The financial stat¢mcnts have been prepared on a going Concern basis under the historical cost convention modified to include certain items at fair value. The financial statements are prepared in sterling which is he functional currency of the harity b) Preparntlon of tbe accounts on a going concern basis Based on the anticipated Government early years programme the directors consider that the company is still a going concern. e) Income reeognition policies Itsms of incom¢ are recognised and included in the a¢Unts when all of the followin8 Criteria are met: the clwity has entitlement to the funds. any perfonnance conditions attached to the items of income have been met or are fully within the control of the charity; there is sufficient certainty that receipt of the income is considered probable. and the amount can be measured reliably. d) Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is norn]ally upon notification of the interest paid or payabl¢ by the bank. (e) ExpeDditure and Liabilities Liabllity recognition Liabilities ar¢ recognis¢d as soon as there is a legal or constructive obligation committing the charity to pay out resources. Governance costs Include costs of the preparation and examination of statutory accounts, any costs of trustee m¢¢tings and cost of any legal advice to trustees on governance or Constitutional matters. Support Costs Support costs include central fimctions and have been allocated to activity cost categories on a basis consistent with the use of r¢sources. page 7
SANDWELL & DISTRICT WEST INDIAN COMMtFNITY ASSOCIATION (A Company Limited by Guarantee) Notes to the accounts 6 months to 31 March 2024 (l) Accounting Policies ( contd) g) FuDd accounting unStrICted funds are available to spend on activities that further any of the purposes ot the charity. DeSiated funds are unrestricted funds of the charity which the directors have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's wor h) Expenditure and irrecoverable VAT Expenditure is recognised onc¢ there is a legal or coftstructive obligation to make a payment to a third party, it is probable that settl¢ment will be rcquired and the amount of the obligation can be measured reliably. Irr¢cov¢rable VAT is charged as a Cost against the activity for which the expenditu was incurred. l) Alloeation of support costs All support costs have been divided between direct charitable expenditure and other expenditure. Within these there is a further analysis of functional supporL fundraisin& publicity and gov¢rnanc¢ Gosts. Th¢ costs incurred by any particular activity (projec( team or administrativ¢ department) hav¢ been allocatsd according to the nature, Charitable or otherwise, of that activity. j) Governance Costs The include costs of the preparation and examination of statutory accounts, the costs of trustee meetings and cost of any legal advice to trustees on governance or constitutional matters. k) Tangible Fixed Assets Tndividual fixed assets costing £1,000 or more are capitalis¢d at cost and are depreciated over their estimat¢d useful economic lives on a straight lin¢ b&8is as follows: Equipmeni fixtures and fittings Depreciation rate 200/0 per annum Straight line Nursery Refurbishment Depreciation rate l 00/0 per annum Straight line l) Creditors and provislons Creditors and provisions are recognised at their settlement amount where the charity has a present obligation resulting from a past event that will probably result in th¢ transfer of funds to a third paty and the amount due to settle the obligation can be measured or estimated reliably. 2024 2023 2 Governan¢e Independent Examiners Fees Other Professional Costs (less excess accruals) Total Expendlture I,995 3.200 275 3,475 1,995 Page 8
SAIYDWELL & DISTRICT WEST INDIAN COMMUNrrY ASSOCIATION (A Company Limited by Guarantee) Notes to the accounts collt'd 6 months to 31 March 2024 6 months 2024 12 Montbs 2023 3. Direct Charitable expenditure 3a Nursery Costs Salaries & Wag¢s Nursery direct expenditure: Food & Watsr Cooler R¢pairs and Maintenance Cleaning & Hygiene Telephone & Postage Heat & Light Printing & Stationery Governance Costs Insurance EventslActiviti¢slOutings Toys & Resources HR support Sundry Exps Training Rates and water costs Sundry Transport Bank Charges Advertising Finance Services Depreciation Systems Regulatory costs 92.260 190,305 3,142 671 1,490 4,033 4,473 907 1.995 1,050 742 693 750 180 47 509 120 91 364 240 235 260 10,044 2.301 5,305 6,227 5,322 2,224 3,475 1,859 2,090 686 1,800 770 896 581 240 J43 682 480 470 440 220 21.992 114,252 46,255 236,560 Total Expenditure 2024 2023 4. Net movement in funds for the year The net movement in funds for the period 18 8tated after ¢harging: Depreciation of tangible assets Statutory Accounts Pro¢¢ssing and Preparation and Jndependent Examination 235 470 1,995 3,200 Page 9
SANDWELL & DISTRICT WEST INDIAN COMMUNTfY ASSOCIATION (A Compaoy Limlted by Guar8nt¢¢) Notes to the accounts cont'd 6 months to 31 March 2024 5. Staff Costs and Rvf's No remuneration or expenses were paid to the trustees in the period Salary Costs Social Security costs (atter Employers NHI £2.5K ajlowdnce (6 Mths)) Er8 Pension costs 2024 2023 88,580 2,242 1.438 92,260 182,790 4,592 2.923 190,305 The average weekly number of staff employed by the Gharity during the period was as follows: No employee received more than £60,000 in emoluments 13 14 6. Tanglble fixed assets for use by the Cbarity 2024 2023 Flxtsrf• FltdDP Equlp Frethold Nwrn¢ry RefvrbLjbrnel Total Totsl Prowty Cost as at l October 2023 Cost &s at 31 March 2024 59,523 59,523 I 12,994 112,994 274,348 274,348 442,165 446,865 442,165 446,865 Acc Depreciation &s at l October 2023 Charge for the period Acc D¢preciation at 31 March 2024 59,522 271,761 235 271,996 331,283 235 331,518 330,813 470 331,283 59,522 Net book Value as at 31 March 2024 112,994 2,352 l J 5,347 115,582 2024 2023 7. Debtors Trade Debtors Prepayinents 1,995 1,249 3,244 3,200 1,050 4,250 8. Bank and Cash Bank Accounts 141 141 487 487 9. Credltors ( Amounts falllng due withln one year) Accruals Employee's Short tenn loan PAYE due (includes £7040 previous year 3110312023) 1,995 500 4,080 3,050 12,144 14.639 12.408 19,538 Page 10
SANDWELL & DISTRICT WEST INDIAN COMMUNITY ASSOCIATION (A Company Limlted by Gu4rantse) Notes to the accounts eont'd 6 months to 31 March 2024 10. Taxation The company is a regtstered charity and in the opinion of the directors no liability to tax arises in respect of the period 11. Fund Balances Restricted Funds Unrestrieted Funds Totsl Funds Funds Blforward as at l October 2023 Surplus for the period Surplus clforward as at 31 March 2024 112,996 (12,215) 3,312 (8,903 100,781 3,312 104,093 112,996 Restrieted Funds Unrestrieted Funds Analys18 of Net Assets by Fund Totsl FuDds Flxed Assets Net Current Assets Net As5¢ts 112,996 112,996 8,903 104,093 8,903 8,903 112,996 12. Going Concern Higher levels of overdraft are not available based on the security of the freehold premises which were funded almost exclusively from the Community Fund (now called the Big Lottery). At the time of reporting the charity has recovered to maintain day to day viability. However the on going viability still remains precarious in the current economic climate and producing a sury)lus to service working ¢apital is still a challenge. The directors continue to take steps and make various difficult decisions to attempt to keep the project afloat. It is planned that the forthcoming periods will continue to produce surpluses to restore overall financial viability. 13 Commltment under op¢rAting leases Sadwica h&8 annual commitments under non ¢ancellable le&se8: 2024 Equipment 2023 Equipment Operating lease payinents are eollows: Within one year 2.500 2,500 5,000 i 0,000 The s¢rvic¢ contrnct payments are for phone ¢quipment and system Page 11
SANDWKLL & DISTRICT WEST llYDIAN COMMUNITY ASSOCIATION (A Company Limlted by Gugrantee) STATEMEIYT OF FINANCIAL ACTivrrIES 6 months to 31 March 2024 13 Previous years detailed funds Comparntiv¢ SOFA Statement of Financial Activities For the year ended 30 September 2023 Unrestricted Funds 2023 Restricted Funds 2023 TotAI Funds 2023 Income Charitable Activltles Community Day Nursery Local Authority SLA Nursery fees Holiday and events funding Early Intervention grant Donations 45,227 45,227 165,096 9.916 3,231 4,420 227.890 165,096 9.916 3,23] 3,700 62.074 720 165,816 Total Ineome J65.816 62,074 227,890 Expendlture Charltable Actlvitles Community Day Nursery 174,486 62,074 236.560 Total Expenditure 174.486 62,074 236,560 Net income 8,670 8,670 Reconciliation of funds Total funds brought forward (3.545) 112,996 109.45 1 Total funds carried forward (12215) 112,996 100.781 Page 12
SAM)WELL & DISTRICT WEST INDIAN COMfvIUNITY ASSOCIATION 6 months to 31 March 2024 Independent Examiners Report to the Trnstees of SANDWELL & DISTRICT WEST INDIAN COM[UNITy ASSOCIATION I report to the charity trustees on my examination of the accounts of the company for the period ended 31 March 2024 which is set out on pages S to 12. Responsiblliiles and basis ofreport As the charity trustees of the company (who are treated as directors for the purposes of the company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ( The 2006 Act, ) Having satisfied myself that the accounts of the company are not required under Part 16 of the 2006 Act and are eligible for independent examination . I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission undcr section 145 (5) (b) of the 2011 Act Independenl Examiner's Slalemenl I hav¢ completed my examination . l Confirni that no matters have come to my attention in conn¢ction with the examination giving me cause to believe that in any material respect . (i) accounting records were not kept in pect of the company as required by section 386 of the 2006 Act, or the accounts do not accord with those records; or the accounts do not Comply with the accounting requirements of section 396 of the 2006 Ad other than any requirement that he accounts give a and fair view ' which is not a matter considered as part of an independent examination ;or the accounts have not been prepared in acrdanCe with the methods and principles of the ststement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland ( FRS102). (2) (3) (4) 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 ord¢r to enable a proper understanding of the accounts to be reached. sied 024 Gary Peter Brookes Fellow of The Institute of Chartered Accountants of England and Wales 130 Wombourne Park Wombourne South Staffs WV5 OLY Page 13