**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee)**
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
COMPANY NO. 3989283 CHARITY NO. 1086165
**Contents**
||**Page**|
|---|---|
|**Legal and administrative information**|**1**|
|**Report of the trustees**|**2-6**|
|**Report of the auditors**|**7-8**|
|**Statement of Financial Activities**|**9**|
|**Balance Sheet**|**10**|
|**Cash Flow Statement**|**11**|
|**Accounting policies**|**12-13**|
|**Notes forming part of the financial statements**|**14-18**|
**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) For the year ended 31[st] March 2025 Legal and Administrative information**
## **Trustees and directors**
E C Haynes** V Manyukhin** D M Langsdon** W Faminu** (Resigned on 04/11/2024) K Grellier** (Resigned on 04/11/2024) A Castro** (Resigned on 12/09/2024)
_** - Management committee members are also, for the purpose of the Companies Act 2006, company directors._
**Key management & personnel** W Jeeves-Services -Director B Ghebreyesus- Finance Director **Administration and registered office:** 164 Mackenzie Road London N7 8SE **Charity registration no.:** 1086165 **Company registration no.;** 03989283 (England & Wales) **Website:** http://www.islingtonplay.org.uk/ **Auditors:** SCB (Accountants) Limited Chartered Accountants & Registered Auditors 31 Sackville Street Manchester M1 3LZ **Bankers:** COIF Charity Funds Co-operative Bank Barclays Bank **Funding Authorities** : London Borough of Islington
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**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Director’s and Trustee’s Report For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
The Trustees are pleased to present their annual directors' report for the year ended 31 March 2025 which is also prepared to meet the requirements for a director’s report and accounts for Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice (effective 1 January 2019) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
## **OBJECTIVES AND ACTIVITIES**
## **Experience**
Islington Play Association has been fighting for children's rights for over 50 years. The organisation has always stayed close to its community activist roots, working closely with parents, carers and community members who want to ensure that the best possible environment is created for children and young people specifically here in this highly overcrowded, over built urban area.
From its start as a pressure group supporting local people to create adventure playgrounds and other play provision in the borough, to its modem incarnation as a provider of services for children and young people and campaigner for the rights of the child, the charity has always had the playing child at the heart of all its work.
Play is fundamentally important because it is here, in the space that children fill for themselves, that their intrinsic motivation, their own developmental aims and their personal experience of life can be explored, tested out and assimilated into their lives. For children living in challenging circumstances, be they social, physical, or material, play is the keyway that resilience, self-confidence and independence can be increased. It is also through play that children leam to interact and coordinate with other people. Play is what happens when children are given the space to be themselves and explore their world, learning about what works and what does not in pursuit of their own intrinsic aims. Through play children can experience a real sense of control and support their own health, happiness and wellbeing.
The problems we are trying to solve:
1. Parental fear around perceived threats from external factors such as cars and strangers reducing children's independence and agency 2. The impact of social media and technology.
3. Worse health outcomes because of unhealthy lifestyles and stress.
4. Cost of living crisis affecting families many of whom are living in poverty
5. Transient communities, reducing children's local connections and a sense of belonging
The things that families tell us make a difference are:
1. Safe spaces to go that are free
2. Welcoming adults with children's best outcomes at heart
3. Interesting places which are exciting, distracting and involving
4. Friends, people to talk to, places to share experiences
5. Role models, mentors and links to other services that can help
At IPA we have a focus on free adventure playgrounds and a welcoming children's centre providing services and wraparound that families have told us that they want.
Organisational Aims, we will continue to:
- 1 . Run an organisation that remains financially sustainable and stable
2. Provide high quality, flexible and relevant services with a focus on those most in need
3. Maintain, develop, and expand unique spaces for play
4. Create and lead innovative projects for children, young people and the community
5. Champion the importance of play for children's health and happiness, their development and continued resilience.
## **Fulfilling the mission in 2024-25**
The biggest challenge for our families in 2024 has continued to be the cost-of-living crisis, with families sometimes having to choose between heating and eating. Islington is the 53rd most deprived local authority in England and the 6th most deprived borough in London. It has the 10th highest level of income deprivation affecting children (indices of Multiple Deprivation 2019).
We understand that children’s unmet needs affect their ability to play and in turn to reap the benefits of play, and that being well fed is a key need. Food poverty is a real issue in Islington.
In response to this issue, we have worked hard to provide thousands of lunches to children throughout all school holidays, working in partnership with The Mayors Fund and Islington Council and through delivering Kitchen Social and Holiday Activities and Food projects on all our Adventure Playgrounds. Children help prepare and cook lunches for everyone. We also provided free Take and Make boxes so that families had the ingredients to cook healthy meals together. We provide 2 informal foodbanks at our Adventure Playgrounds throughout the year through our work with the Felix Project.
In partnership with Awesome CIC we delivered Islington’s National Playday, a free event celebrating and promoting Children’s Right to Play (Article 31 UN Convention on the Rights of the child). Playday 2024 was a great success.
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**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Director’s and Trustee’s Report For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
Our nursery at Paradise Park opens all year round and our team of Early Years practitioners have worked hard to provide a stimulating and varied environment both inside and out to support all developmental areas for children aged 6months-5 years. Children are encouraged to play outside, and practitioners follow the interests of the children. The nursery provides healthy meals with a varied menu so that children learn about different cultures and taste a variety of healthy foods at a young age. Practitioners work with families to support children’s development both at home and in the nursery. Such a stimulating environment contributes to children’s learning and development and in giving children the best start.
Our Adventure Playgrounds have continued to deliver fantastic outdoor play to children aged 6 and over. Children attend for free throughout the year and enjoy a variety of play throughout the seasons, getting the chance to relax and play, use their imaginations, dig, build using tools, grow things, get creative, challenge themselves, hang out with friends, cook and have fires; experiences which are hard to come by in the inner-city. Children are seen as experts in play and create with the staff an environment where play can thrive. Children are encouraged to share their ideas and our skilled playworkers support them to make those ideas a reality. This child centred approach ensures that our play offer remains relevant to those who attend.
Islington is the London borough with the second least public green space of all London boroughs (GLA’s London Borough profiles 2011) so our playgrounds are important safe spaces for children to play outside.
We know that for children play doesn’t have an outcome; play is for its own sake. Despite this, there are multiple benefits from play, it helps children build resilience and is good for physical, social and emotional development. Play is also great fun and provides important positive moments where the world becomes a better place. The impact of play goes some way in mitigating the difficulties children experience in their lives.
Beyond the numbers of children who attend our playground and nursery sites are the unique experiences that each child has, the friendships created, the sense of belonging, the space to experiment and enjoy challenging or messy play, and the supportive relationships our staff develop with both children and families. Play really does benefit communities.
## **Challenges 2024/25:**
It has been a very challenging year for the organisation, most importantly in ensuring a sustainable model to take us into the future. Rising costs and reduced funding have meant we have had to cut back wherever possible and difficult decisions have had to be made, for example, restructuring Adventure Playgrounds and the Leadership teams.
Recruiting Early Years practitioners is an ongoing challenge as there is a national shortage in the Early Years workforce. We have had to employ agency staff which has had a significant impact on the budget.
We have a new post; Income Generation Officer who started in March 2025 to help support sustainability moving forward.
## **Potential challenges:**
We are encountering several significant hurdles common to many voluntary organisations but particularly relevant to us. These challenges offer opportunities to innovate and strengthen our strategies for sustainable growth. In trustee recruitment, we aim to build a stronger board with qualified candidates, whilst also striving for diversity and inclusion. Finding candidates who are able to manage the role and responsibilities and support our aims can take time and is set against the backdrop of competition from other charitable organisations. Fundraising is difficult due to increased competition for donor funds and economic conditions affecting generosity, necessitating innovative strategies and maintaining donor trust.
Additionally, our staff have been unionised, which we believe would have significant benefits to both our staff and the organisation. However, we may face risks of strikes or work stoppages due to disputes that may impact operations, requiring effective negotiation and communication with staff unions. Furthermore, potential liabilities that may arise and impact our financial stability include unforeseen financial obligations, contingent liabilities, legal claims, and long-term contract obligations.
## **Structure, Governance and Management**
## **Governing Document**
Islington Play Association is a company limited by guarantee and is a registered charity. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
## **Recruitment & Appointment of Trustees**
Appointment of directors/Trustees is governed by the Memorandum & Articles of Association.
New Trustees undergo training on their legal obligations as under Charity Law, the decision-making process, the business plan and recent performance of the charity.
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**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Director’s and Trustee’s Report For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
## **Organisational Structure**
Islington Play Association (IPA) is managed by a board of directors. Directors also serve as trustees for the purpose of charity law. Recruitment of trustees is managed as and when needed and is planned to fill gaps in knowledge as identified by the Managing Director and trustees. A recruitment process is followed which includes an application and interview. Directors are elected by members of the charitable company at an annual general meeting and officer positions confirmed annually. Additionally, the board may co-opt individuals to serve as directors, but any person so appointed may retain office only until the next annual general meeting when they are entitled to stand for full election.
Induction processes and documents are in place and are carried out jointly by staff and existing trustees.
The Directors meet a minimum of five times a year to review the affairs of the charitable company. A 'finance, audit and risk' committee meets at least four times a year to review remuneration of personnel, annual budgets, and financial management. Other sub committees and directors' working groups are formed as required. Currently a People and Culture group meets at least 4 times per year.
## **Leadership**
After a period of interim leadership, the organisation is now led by a Managing Director who oversees all aspects of the services, provides strategic direction, and advocates for the charity's mission and aims both internally and externally. The Managing Director line manages all site managers who deliver front line services. The senior management team is made up of the Managing Director and Finance Director, the latter being responsible for the budgeting and management of the accounts and line management of the finance team.
## **Workforce**
We have a finance team and People and Business Manager, and managers are in place at each site of service delivery be it Adventure Playground or Nursery, and they are responsible for line management, Health and Safety, Safeguarding and frontline engagement. We have a receptionist/facilities manager and teams of Playworkers and Early Years Practitioners who work directly with children throughout the year
IPA is committed to the London Living Wage and encourages applications from the local community. IPA recognises that excellent staff are fundamental to the delivery of the mission and is committed to using HR practices to support and manage staff issues in a timely and efficient way. All staff have regular supervision and annual appraisals. IPA encourages applications from all communities and actively aims to recruit people reflective of the diverse population served. IPA is proud to be a local employer and signed up to the London Living wage.
## **Risk Management**
All major risks to which the charity is exposed, as identified by the senior management team of the organisation and the trustees, are actively reviewed and systems and procedures are in place to manage those risks. IPA's risk register uses a system to quantify and rank specific risk items according to certain criteria such as financial implications for the organisation and is regularly reviewed at trustee meetings. All risks are then discussed, and mitigation strategies developed by management and the trustees. Dynamic risk assessments also form part of the management system allowing for rapid response to changing guidance and regulation.
## **Related parties**
None of the Trustees receive remuneration or other benefit in their capacity as Trustees of the charity. Any connection between a Trustee of the charity and organisation providing services to the charity must be disclosed to the full board of Trustees in the same way as any contractual relationship with a related party. In the current year no such related party transactions were reported.
## **Public benefit**
The trustees have complied with the duty in Section 4 of the 3006 Charities Act to have due regard to guidance published by the Charity Commission, including public benefit guidance, and consider that IPA's mission, aims and activities are for the public benefit. The effectiveness of the of the charity's work is discussed at trustee meetings and decisions made as necessary. All planning is based on achieving the core aims of the charity to support, increase and improve play opportunities for children and young people in order that they may have the best start possible to their lives.
Experience and learning are used to adapt and change the development plans as necessary. Consistent consultation and feedback provide real evidence of the effect of the charity as do the continued granting of funding by government streams and recognition through awards.
## **Financial review**
The Statement of Financial Activities shows a total income for the year amounted to £1,367,670 with total expenditure amounting to £1,445,070 leaving a deficit in the year of £77,400.
In 2024/25, the cost-of-living increase for staff salaries across the organisation was significant due to the unprecedented inflation rate at the time. Additionally, the national shortage of Early Years Practitioners has led to an increased reliance on agency workers instead of contracted staff.
To address these challenges and reduce costs, we have appointed an Income Generation Officer (IGO) to maximise our income and cover additional expenses. For 2025/26, we anticipate generating an additional £70,000. This projection is conservative compared to the potential
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**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee)**
**Director’s and Trustee’s Report For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
impact of the IGO's planned activities. This year will lay the groundwork for continued income generation, and we aim to increase this figure next year. Each playground is expected to generate up to £15,000 by utilising the sites for hire and running income-generating activities. Previously, these playgrounds were not used for income generation, making this a new and coordinated effort led by the IGO. Additionally, we plan to recruitment apprentices and actively seek qualified Early Years workers to fill vacancies through our People and Business Manager, significantly reducing the cost of agency workers. In addition, an expansion in the baby room will generate more income for the children's centre. We are also pursuing corporate sponsorship and have been invited to submit a proposal to one of our corporate partners for significant sponsorship funding over four years. Our goal is to rebuild our reserves to their former levels in the coming years.
## **Principal funding sources**
Our principal funding source in 2024/25 was Islington Council through two commissioned contracts fulfilled through five Adventure Playgrounds and a Children’s Centre. Additional funding came through fees from services and grants from the Mayors Fund for London- Kitchen Social, Holiday Activities and Food (HAF) and donations from corporate volunteers through the Big Alliance.
The capital estate now includes Paradise Park Children’s Centre, Lumpy Hill, Crumbles, Timbuktu, Toffee Park and Martin Luther King Adventure Playgrounds. Toffee Park closed for redevelopment in September 2024. We anticipate a new building and being ready for reopening early 2026.
## **Investment powers and policy**
The Memorandum & Articles of Association authorises the Trustees to make and hold investments using the general funds of the charity.
## **Reserves policy and going concern**
The Trustees have established a reserves policy, reviewed at least annually. Within unrestricted funds, £42,500 (2024: £42,500) is designated to cover closure costs for up to three months if the charity ceases operations. This designated fund excludes contracted services, i.e., Paradise Park Children's Centre and the five playgrounds. The remaining funds would be utilised by the charity for various purposes, including reinvesting in the children's centre, operating capital, and supporting the furtherance of the charity's objectives. Accumulated reserves at the balance sheet date amounted to £62,370.
To increase free reserves, the charity will focus on reducing costs and optimising operational efficiency. This includes careful budgeting, negotiating better terms with suppliers, and identifying areas where expenses can be minimised without compromising service quality. Additionally, the charity will seek to increase revenue through fundraising efforts, grants, and other income-generating activities. We have employed a part-time Income Generation Officer to assist with these efforts.
## **Fundraising standards**
The Islington Play Association Is not registered with the Fundraising Regulator and the charity has not carried out any significant fundraising activities.
## **Fixed Assets**
The movement in fixed assets are shown in note 13 of the financial statements.
## **Plans for future periods**
For the year 2025/26, funding has been secured from the London Borough of Islington, with total grants amounting to £536,743 for the five playgrounds and an indicative budget of £444,438 for Paradise Park Children's Centre. These two commissioned services are the core activities of the Charity. The Trustees aim to further develop the children's centre, enhancing nursery education and outreach services in Islington and the surrounding areas.
## **Directors and Trustees**
The Trustees who are Directors for the purpose of company law who have served during the year and up to the date of this report are set out on page 1.
## **Trustees responsibilities In relation to the financial statements**
The charity Trustees (who are also Directors of the Company for the purposes of company law) are responsible for preparing a Trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they that give a true and fair view of the state of affairs of the company and of its income and expenditure for that period. In preparing these financial statements, the Trustees are required to:
select suitable accounting policies and apply them consistently.
observe the methods and principles in the Charities SORP.
make judgments and estimates that are reasonable and prudent.
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
prepare financial statements on a going concern basis unless It is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the chanty and hence for taking reasonable steps for the prevention and detection of fraud and other irregulates.
The trustees are responsible for maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Director’s and Trustee’s Report For the year ended 31[st] March 2025**
## **_________________________________________________________________________________________________________________________**
## **Statement as to disclosure to our auditors**
In so far as the Trustees are aware at the time of approving our Trustees' annual report:
- there Is no relevant information, being information needed by the auditor in connection with preparing their report, of which the
- company’s auditor is unaware; and
the Trustees, having made enquiries of fellow Directors and the company auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **AUDITORS**
A resolution will be proposed and agreed at the Annual General Meeting SCB (Accountants) Ltd be re-appointed as auditors of the Charity for the ensuing year.
**APPROVAL** This report along with the strategic report was approved by the Board of Directors and Trustees ____________ and signed on its behalf: 21/7/2s
_______________ Trustee & Company Director
## VLAOLSLAV MAMSUKH (ry EEF
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**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Statement For Financial Activities For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
## **Opinion**
We have audited the financial statements of Islington Play Association for the year ended 31 March 2025, which comprise the Statement of Financial Activities (summary Income and Expenditure Account), balance sheet, cashflow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law, and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2025, and of its incoming resources and application of resources, including its Income and expenditure, for the year then ended;
- have been properly prepared in accordance with the United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis of opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. The charity is materiality dependent on continued financial support from Islington Council to meet its operational and financial obligations.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other Information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.
## **Opinion on other matter prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
-the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-the Trustees report has been prepared in accordance with applicable legal requirements-
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or -the financial statements are not in agreement with the accounting records and returns; or
- -certain disclosures of directors' remuneration specified by law are not made; or
- -we have not received all the information and explanations we require for our audit; or
-the trustees were not entitled to prepare the financial statements in accordance with the small companies' regime and take advantage of the small companies' exemption in preparing the Directors' and Trustees' Report.
## **Responsibilities of trustees**
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Statement For Financial Activities For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to Issue an auditor’s report that includes our opinion Reasonable assurance Is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material Misstatements when it exists. Misstatements can arise from fraud or error and are considered material if, Individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures In line with our responsibilities, outlined above, to detect material misstatements in respect to irregularities, including fraud.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations and remained alert to any indications of non-compliance.
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation, Charity Act 2011, SORP 2019, employment laws and health and safety. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
- We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness,
- We reviewed accounting policies for evidence of management bias and ensured that the accounting policies were correctly applied to the financial statements.
- We reviewed minutes of Trustee Board meetings, any correspondence with the Charity Commission and reviewed the procedures in place for the reporting of any incidents to the Trustee Board including serious incident reporting of these matters as necessary with the Charity Commission.
- We agreed the financial statement disclosures to underlying supporting documentation, made enquiries of management and officers of the charitable company regarding laws and regulations applicable to the organisation and discussed whether there had been any known breaches of laws and regulations in order to consider any possible further considerations or impact upon the Charity.
-
- We reviewed the risk management processes and procedures.
Because of. the inherent limitations of an audit, there is a risk that we will not detect all. irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulätion.is removed from the events and transactions reflected in the financial statements; as we will be less likely to become-aware of instances. of non- compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.orq.uk/auditors responsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act.2006. Our audit work has been undertaken so that we might state to the Company's members those matters We are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report; or for the opinions we have -formed.
## TAK
**Jeffrey Bor Bsc FCA (Senior Statutory Auditor)**
## **For and on behalf of SCB (Accountants) Ltd, Statutory Auditor.**
**31 Sackville Street Manchester M1 3LZ Date:** 24/07/2025
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**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Statement For Financial Activities For the year ended 31[st] March 2025**
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||**Notes**|**Funds**|**Funds**|**2025**|**2024**|
|---|---|---|---|---|---|
|||**£**|**£**|**£**|**£**|
|**Income**||||||
|Grants and Donations|3|5,274|1,035,095|1,040,369|1,098,819|
|Income from charitable activities|4|320,853|-|320,853|409,050|
|Other income|5|6,448|-|6,448|5,382|
|||332,575|1,035,095|1,367,670|1,513,251|
|**Expenditure**||||||
|Expenditure on charitable activities:||||||
|Direct charitable activities|6|400,855|1,035,095|1,435,950|1,682,893|
|Management & Administration|7|9,120|-|9,120|14,409|
|**Total Expenditure**||409,975|1,035,095|1,445,070|1,697,302|
|**Net income/(expenditure) & net movement in**||||||
|**funds before transfers**||(77,400)|-|(77,400)|(184,051)|
|**Transfer of funds**||-|-|-|-|
|**Net income/(expenditure) & net movement in**||||||
|**funds after transfers**||(77,400)|-|(77,400)|(184,051)|
|**Total funds, brought forward**|17|139,770|-|139,770|323,821|
|**Total funds, carried forward**||62,370|-|62,370|139,770|
The statement of financial activities also complies with the requirement of income and expenditure account under the companies act 2006.
## CONTINUING OPERATIONS
None of companies’ activity were acquired or discontinued during the above two financial periods.
TOTAL RECOGNISED GAINS AND LOSSES.
The company has no recognised gains or losses other than above movement in the funds of above two financial periods.
The notes on the page of 12 to 18 form part of this account.
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**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Statement For Financial Activities For the year ended 31[st] March 2025**
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||**Notes**|**2024/25**||**2023/24**||
|---|---|---|---|---|---|
|||**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Tangible assets|13||29,704||32,551|
|**Current assets**||||||
|Debtors|14|34,417||24,331||
|Cash at bank and in hand||157,172||259,908||
|||191,589||284,239||
|**Liabilities**||||||
|Creditors falling due with in one year|15|(149,180)||(158,255)||
|**Net current assets**|||42,409||125,985|
|Creditors falling due after more than one year|16||(9,742)||(18,764)|
|**Net assets**|||62,370||139,770|
|**The funds of the charity**||||||
|Unrestricted funds:|17||19,870||97,270|
|Designated funds:|||42,500||42,500|
|**Total charity funds**|||62,370||139,770|
The Trustees have prepared the account in accordance with sections 398 of the companies act 2006 and sections 138 of the charities act 2011.These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
The accounts were approved by the Board of Directors and Trustees on ______________ and were signed on its behalf by. 21 [|e
**_________________ Trustee & Company Director**
**_________________**
## **Trustee & Company Director**
## **Company Registration No: 3989283**
The notes on the page of 12 to 18 form part of these account.
`10`
**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Statement of Cash Flows For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
|**Notes**
**Cash used in operating activities**
19
**Cash flows from investing activities**
Interest income
Purchase of tangible fixed assets
Disposal of tangible Fixed assets
**Cash provided by / (used in) investing activities**
**Cash flows from financing activities**
Repayment of borrowing
**Cash used in financing activities**
Increase / (decrease) in cash & cash equivalents in the year
Cash & cash equivalents at the beginning of the year
**Total cash & cash equivalents at the end of the year**|**2025**
**2024**
**£**
**£**
(93,428)
(117,531)|
|---|---|
||6,448
5,382
(7,498)
(21,848)
763|
||(288)
(16,466)|
||(9,022)
(11,310)|
||(9,022)
(11,310)|
|||
||(102,737)
(145,308)|
||259,908
405,216|
||157,171
259,908|
```
11
```
**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Accounting Policies For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
## **Accounting policies**
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.
## **Basis of Preparation**
The Financial statements have been prepared in accordance with Accounting and Reporting of charities: SORP applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective date 1 January 2019) - Charities SORP (FRS 102), the financial reporting standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.1slington Play Association meet the definition of Charity under FRS 102.
The financial statements are prepared in sterling, which is the functional of the charity. Monetary amount in these financial statements is rounded to the nearest £.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise •stated in the relevant accounting policy (notes).
## **Preparation of accounts on a going concern basis**
The Charity's Financial Statements show net deficit of £77,400 mainly because of increase in nursery staff costs which was considered as one of major expenditure. This has led to reduction in free reserves available to the charity and currently charity has not met reserve policy requirement. However, for the purposes of short and medium-term financial management, the Trustees are closely monitoring the working capital position in line with their policy of building free resources sufficient to fund ongoing unrestricted core expenditure.
The review of secured income from Islington council and the budgets prepared for the next 12 months from the date of approval of the financial statements, the associated assumptions that under pin in, the pipeline of new nursery income and the steps that could be taken to reduce expenditure should this be necessary. Further, it is supported by the increase in volume of activities suggest that the charity would be earning more Income in future. We reviewed the reserve policy and taking into consideration the designated funds as well as modelling scenarios to understand the impact of various income and expenditure.
As the charity is still showing a positive reserve of £62,370 and based on the information above the Trustees have a reasonable expectation that the charity has adequate resources to continue in operation for the foreseeable future as the charity is dependent on continued financial support from [Name of Council] to meet its operational and financial obligations. Therefore, the trustees have adopted the going concern basis in preparing these accounts.
## **Incoming resources**
Income (including income from government and other grants) is recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met. It is probable that the income will be received, and the amount can be measured reliably.
## **Government Grants**
Income from government grants comprises of grant funding made available by local authorities to fund the children centre and adventure playgrounds running cost of the Charity. See note 3 for more information and to the amount and sources of these grants.
## **Interest and investment income receivable.**
Interest on funds held on deposit and income from investments held is included when receivable and the amount can be measured reliable by the charity.
## **Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside for a specific purpose. Restricted funds are donations or grants which the donor has specified are to be solely used for a particular purpose or area of the IPA work or projects being undertaken by IPA.
```
12
```
**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) Accounting Policies For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
## **Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following headings.
- expenditure on charitable activities includes the cost of operating the nursery and outreach services.
- management and administration include support costs for those functions that assist the work of the charity.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure has been incurred.
## **Operating leases**
Rentals paid under operating leases are charged to income on a straight-line basis over the lease term.
## **Tangible fixed assets**
Tangible fixed assets for use by the charity are stated at cost less depreciation. Individual fixed asset costing £500 or more are capitalised as cost.
Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:
- Fixtures & Fittings - 25% reducing balance.
- Property - 25% reducing balance
## **Debtors**
Trade and other debtors are recognised at the settlement amount due aner any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash at bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of less than three months from the date of acquisition or opening of the deposit or similar account.
## **Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
## **Financial instruments**
IPA has financial assets and financial liabilities of a kind that qualify as basic financial instruments. The charity does not acquire put options, derivatives or other complex financial instruments.
## **Pensions**
The charity operates a defined contribution pension scheme on behalf of its employees. Contributions are charged to the Statement of Financial Activities in the period in which they are payable.
## **Judgement and key resources of estimated uncertainty**
In the application of the company's accounting policies, the charity is required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factor that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods which are addressed as below:
- (I) Useful economic lives of tangible assets-
Depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the trustees. Estimated useful lives and residual lives are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidence by disposals during current and prior accounting periods.
```
13
```
**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENT For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
## **1 Legal status of the Charity**
Islington Play Association is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
|Income
Expenditure on charitable activities
Expenditure on management and administration
Depreciation
Net income
Total funds brought forward
Total funds carried forward
Represented by:
Unrestricted funds
**2 Financial performance of the charity**
**3 Income from Donations and Grants**
LB islington - Core Grant
Lagacies
Other Income
London Mayor's fund
Donation||**2025**
**£**
1,367,670
1,426,368
9,120
9,581
1,445,070
(77,400)
139,770
62,370
62,370
**2025**
**£**
998,395
-
31,450
5,250
5,274
**1,040,369**||**2024**
**£**
1,513,251
1,674,127
14,409
8,766
1,697,302
(184,051)
323,821
139,770
139,770
**2024**
**£**
964,190
113,834
12,500
5,250
3,045|
|---|---|---|---|---|
||||||
||||||
||||||
||||||
||||||
||||||
|||||**1,098,819**|
Of the £ 1,040,369 grants and donation income in year ending 31[st] March 2025 (2024: £1,098,819) £1,035,095 were restricted funds (2024: £1,095,774) and £5,274 were unrestricted funds (2024: £3,045).
|**4 Income from charitable activities**
Activity
Advancing education of children- supporting play activity|**2025**
**£**
320,853|**2024**
**£**
409,050|
|---|---|---|
Charitable activities income totalled £320,853 (2024: £409,050). These were attributed fully to unrestricted funds for the current year and previous year.
|**5 Income from other charitable activities Fund raising**
Interest receivable
Insurance Claim|**2,025**
**2,024**
**£**
**£**
4,841
5,382
1,607
-
**6,448**
**5,382**|
|---|---|
These were attributed fully to unrestricted funds for the current year and previous year.
```
14
```
**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENT For the year ended 31[st] March 2025**
## **_________________________________________________________________________________________________________________________**
## **6 Analysis of expenditure on charitable activities**
|Supporting Play activity Direct costs|Unrestricted/
Designated Fund
**£**
400,855
400,855|Restricted fund
**2025**
**2024**
**£**
**£**
**£**
1,035,095
1,435,950
1,682,893|
|---|---|---|
|||1,035,095
1,435,950
1,682,893|
Of the £1,682,893 expenditure in 2024, £587,119 was charged to unrestricted fund and £1,095,774 to restricted fund.
|**7 Analysis of governance and support cost**
Legal & professional
Audit & Accountancy Fees
These were attributed fully to unrestricted funds for the current year and previous year.
**8 Net income /(expenditure) for the year**
This is stated after charging:
Depreciation -owned assets
Auditors remuneration for audit services
**9 Analyses of staff costs, trustee remuneration and expenses, and the cost of key**
**management personnel**
Wages and salaries
Employers national insurance
Employers Pension
Agency & sessional staff
The average number of staff employed during the year were as follows:
Direct charitable
Administration & support
The average number of monthly agency staff employed during the year was 5.75 (2024: 5.75)
The number of employees whose total employee benefits (excluding employer pension)
in excess of £60,000 on an annual basis are as follows: -
£60,000 to £69,999||**2025**
**£**
-
9,120
9,120
**2025**
**£**
9,581
9,120
**2025**
**£**
972,562
69,308
23,545
170,842||**2024**
**£**
5,289
9,120
14,409
**2024**
**£**
8,766
9,120
**2024**
**£**
984,793
76,922
22,531
189,512|
|---|---|---|---|---|
||||||
||||||
||||||
|||1,236,257||1,273,758|
|||34
6||33
6|
|||40||39|
|||1||1|
These were attributed fully to unrestricted funds for the current year and previous year.
The key management personnel of the charity are as shown on page 1. The total employee benefits of the key management personnel of the charity were £108,099 (2024: £167,111).
In addition, a great amount of time, the value of which it is impossible to reflect in these financial statements, is donated by approximately 301 volunteers who has equated in excess of 1204 volunteers’ hours during the year.
## **10 Trustees' remuneration**
The trustees were not paid or received any other benefits from the Charity during the year in their capacity as trustees.
## **11 Related party transactions**
There were no related party transactions for the year ended 31 March 2025
## **12 Corporation Tax**
The Charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
```
15
```
**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENT For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
|**13 Tangible fixed assets**
Cost;
At 1 April 2024
Additions
Disposal
At 31 March 2025
Depredation
At 1 April 2024
Charge in year
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024
**14 Debtors**
Amounts due within one year:
Trade debtors
Fees debtors
Prepayments
**15 Creditors**
Amounts falling due within one year:
Trade creditors
Fees creditors & deposits
Other creditors
Holiday pay accrual
Accrued expenses
Loans
**16 Creditors**
**Amounts falling due more than one year:**
Loans|**2025**
**£**
53,212
7,498
(763)
59,947
20,661
9,581
30,242
29,704
32,551
**2025**
**£**
1,868
6,001
26,548
34,417
**2025**
**£**
13,628
64,388
23,842
19,726
17,423
10,172
149,180
**2025**
**£**
9,742
9,742|**2024**
**£**
31,364
21,848
-|
|---|---|---|
|||53,212|
|||11,895
8,766|
|||20,661|
|||32,551|
|||19,469|
|||**2024**
**£**
2,663
550
21,118|
|||24,331|
|||**2024**
**£**
22,435
58,774
25,378
31,382
9,120
11,166|
|||158,255|
|||**2024**
**£**
18,765|
|||18,765|
|**17 Analysis between fund balances between Net assets**
Tangible fixed assets
Net current assets
Long term liabilities
**Analysis between fund balances between Net assets-Previous year**
Tangible fixed assets
Net current assets
Long term liabilities|**General**
**Designated**
**2025**
**£**
**£**
**£**
29,704
-
29,704
(91)
42,500
42,409
(9,742)
-
(9,743)
**19,870**
**42,500**
**62,370**
**General**
**Designated**
**2024**
**£**
**£**
**£**
32,551
-
32,551
83,484
42,500
125,984
(18,765)
-
(18,765)
**97,270**
**42,500**
**139,770**
**Unrestricted**
**Unrestricted**|**General**
**Designated**
**2025**
**£**
**£**
**£**
29,704
-
29,704
(91)
42,500
42,409
(9,742)
-
(9,743)
**19,870**
**42,500**
**62,370**
**General**
**Designated**
**2024**
**£**
**£**
**£**
32,551
-
32,551
83,484
42,500
125,984
(18,765)
-
(18,765)
**97,270**
**42,500**
**139,770**
**Unrestricted**
**Unrestricted**|
|---|---|---|
|||**42,500**
**139,770**|
```
16
```
**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENT For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
## **18 Analysis of Funds**
|Restricted Funds
LB islington - Core Grant
London Mayor's fund
Other Income
**Unrestricted Funds**
General funds
Designated Funds
**Total funds**
**Analysis of Funds - Previous years**|**Balance**
**Incoming**
**Resources**
**Transfer**
**Balance at**
**01/04/2024**
**Resources**
**Expended**
**31/03/2025**
£
£
£
£
-
998,395
(998,395)
-
-
-
5,250
(5,250)
-
-
-
31,450
(31,450)
-
-
-
1,035,095
(1,035,095)
-
-
97,270
332,575
(409,975)
19,870
42,500
-
-
42,500
139,770
332,575
(409,975)
-
62,370
139,770
1,367,670
(1,445,070)
-
62,370|
|---|---|
|**Restricted Funds**
LB islington - Core Grant
Legacies
Other Income
Others
London Mayor's fund
**Unrestricted Funds**
General funds
Designated Funds
**Total funds**|**Balance**
**01/04/2023**
£
-
-
-
-
-
-
228,821
95,000
323,821
323,821|**Incoming**
**Resources**
**Transfer**
**Balance at**
**Resources**
**Expended**
**31/03/2024**
£
£
£
964,191
(964,191)
-
-
113,834
(113,834)
-
-
12,500
(12,500)
-
-
-
-
-
-
5,250
(5,250)
-
-|
|---|---|---|
|||1,095,775
(1,095,775)
-
-|
|||417,476
(601,528)
52,500
97,270
-
-
(52,500)
42,500
|
|||417,476
(601,528)
-
139,770|
||||
|||1,513,252
(1,697,303)
-
139,770|
## **Description, nature & purpose of funds:**
## **Unrestricted fund:**
Unrestricted fund includes both the general fund which represents fund available to spent at the discretion of the trustees after allowing for all designated funds.
## **Designated fund:**
The designated fund represents monies designated by the trustees to cover closure cost up to 3 months in the event of the charity Cease to operate.
## **Restricted funds:**
LB Islington-Core Grant: This is mainly two council funded commission services aimed at providing one children centre and five adventure playgrounds.
**London Mayor’s Fund:** This focuses on provision of good quality holiday for children including the provision of nutritionally balanced meals over the school holidays.
**Other Income:** This represents small grants aimed at supporting various services provided by the organisation.
```
17
```
**ISLINGTON PLAY ASSOCIATION (Private Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENT For the year ended 31[st] March 2025**
**_________________________________________________________________________________________________________________________**
|**19 Reconcilliation of net movement in funds to net cash flow from operating activities**
Net movement in funds for the reporting period (as per the SOFA)
Add back depreciation
Deduct interest income shown in investment activities
(Increase)/decrease in debtors
(Decrease)/Increase in creditors
**Net cash used in operating activities**|**2025**
**2024**
**£**
**£**
(77,400)
(184,051)
9,581
8,766
(6,448)
(5,382)
(10,086)
34,866
(9,075)
28,268
(93,428)
(117,533)|
|---|---|
## **20. Ultimate Controlling Party**
The charity was under the control of the Board of Trustees throughout the year.
## **21. Contingent liability**
As at 30 September 2024, rent arrears totalling £31,881 were outstanding in relation to One Housing. No correspondence has been received from One Housing to confirm or pursue this amount. The last formal communication from the Company, issued through its legal representative, was sent on 17 September 2024 and remains unanswered.
In light of the statutory six-year limitation period for the recovery of rent arrears, there is uncertainty regarding the final amount that may become payable. Accordingly, no provision has been recognised in the financial statements, as the liability is not currently considered probable, pending further communication or a formal agreement.
```
18
```