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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 04349015 (England and Wales) REGISTERED CHARITY NUMBER: 1093845

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2022

FOR

HONEYCROFT

(A COMPANY LIMITED BY GUARANTEE)

Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

HONEYCROFT

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2022

Page
Report of the Trustees 1 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8 to 9
Notes to the Financial Statements 10 to 16
Detailed Statement of Financial Activities 17 to 18

HONEYCROFT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2022. 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 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Charity's objectives and principal activity, as defined by the Memorandum and Articles of Association, are:

Honeycroft provides services to meet its objects through a range of activities based at the centre in Hove. This includes a nursery and crèche facilities. An after school club provides for children from 5 years up until 11 years for both after school and holiday times, and a Volunteering Project provides opportunities for parents, carers and others to become involved in all aspects of the services. The Centre provides a a range of partnership projects based on current funding and need including male carers stay and play sessions, intergenerational yoga project and multiple births coffee mornings.

Public benefit

In shaping our objectives and planning our activities for the year, the Trustees have given consideration to the duties set out in section 17(5) of the Charities Act 2011 to have due regard to public benefit. In particular, the Trustees have considered how the planned activities will contribute to the overall aims and objectives that they have set

The Trustees believe that the paragraphs, specifically on the "Objectives and Activities" and "Achievements and Performance" for the year, relate in detail the benefit that the charity provides to the public.

Volunteers

The work of the charity is greatly assisted in the fulfilling of its objects through the work of volunteers. Volunteers are active in all levels of the running of Honeycroft and without their labour and regular input the charity would have been able to make the achievements it has. Honeycroft continues to attract volunteers mainly through word of mouth or access through childcare courses.

Page 1

HONEYCROFT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2022

ACHIEVEMENT AND PERFORMANCE

Charitable activities

From March 2021 Covid 19 prevention measures continued to be in place and we continued to offer a full service to our children in the nursery with a gradual return to our out of school provision. Additional programs and income from room rental continued to be limited. Unfortunately, in January 2022 the centre had to close for a period of 4 days, as a number of staff contracted COVID and we were unable to maintain staff to child ratios to remain open. However, home learning tasks and information were sent to ensure communication with our families.

During this time frame our greatest achievement was being able to maintain services through an extended period of restrictions and requirements as a result of Covid 19, reopening after setbacks, and continuing to provide quality childcare services whilst communicating effectively with our families.

The trustees main focus for the coming year will be to secure funds, to continue to rebuild services and build up the reserves to secure Honeycroft's longer term future.

Moving forward we continue to be encouraged by how quickly we have been able to build back up numbers after a difficult period. We will be continuing to apply for funding, to create community events and new projects as part of our ongoing rebuilding and recovery.

FINANCIAL REVIEW

Financial position

The figures from our draft Accounts are;

£180,889 total unrestricted funds and £nil total restricted funds as at 31/03/2022. This represents a decrease of £37,945 which is the reality of the Covid grant income being turned off during this financial year.

Details of movements on the Statement of Financial Activities are set out on page 7 of the financial statements.

This was year two of the global pandemic and saw trading activities continue to be hampered by these external factors. Things were beginning to normalise, and we did see a small increases in our rental income but not yet back to pre-pandemic levels. We also saw the winding down of the furlough scheme and this inevitably had a significant impact on the top line. Thankfully the nursery continued to trade throughout and thanks to the tireless efforts of Natasha and her team, our activities continued throughout the ongoing disruption and this enabled the income to continue to be received by the nursery.

This year saw our rent increase by £5,000 over the year from the previous year, and we also spent more on the maintenance of the building. These all had an impact on the year and led to our expenditure exceeding income by £37,945. Thankfully we had sufficient reserves in place to allow us to weather this difficult year. Our aim looking ahead into the next year is to increase our revenue and to review the fee scales to ensure that we remain competitive and in line with our objectives as a charity, but also to be more commercial in areas that we can reasonably do so, such as renting out space to third parties.

Reserves policy

It is the policy of the Charity to maintain unrestricted funds, which are the free reserves of the Charity, at a level which provides sufficient funds to cover management, administration and support costs. Our aim is to achieve a level which will enable the charity to achieve its long term objectives.

Page 2

HONEYCROFT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2022

FUTURE PLANS

Honeycroft constantly strives to improve and develop its service provision to fulfil its charitable objects and will continue to do so. It strives to be as self-sustaining as possible to avoid over dependency on single funding streams. However, the impact of Covid 19, staff retention and recruitment, along with increases to utilities and rental costs has presented - ongoing challenges.

There is continued a determination to provide additional facilities and services for the local community , however the current financial climate, makes development ever more difficult. the trustees are committed to seek additional support & help to review our fund-raising strategies and further support activities for our children & families, seeking new opportunities, wherever possible, to develop Honeycroft's offer to further reach more of the local community.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity was incorporated, as a company limited by guarantee, on the 8 January 2002 but was dormant until 1 September 2002 when, following the granting of charitable status, took over the responsibilities of Honeycroft Under 5's Centre an unincorporated association. The governing document is the Articles and Memorandum of Association.

As the Charity is limited by guarantee, there is no share capital. At the year end, each member has undertaken to contribute to the Charity's assets, in the event of the Charity being wound up, such amount as may be required, not exceeding £1.

Recruitment and appointment of new trustees

New Trustees join the Board at the invitation of the Board and are chosen with the view to ensuring that the Board contains an appropriate balance of experience relevant to the operations of Honeycroft. Trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the decision making processes, the business plan, policies and financial procedures and the recent financial performance of the charity.

Organisational structure

The activities of the charity are advised and monitored by the Board of Trustees who meet regularly to set the strategic direction of the organisation and for establishing policy. They also ensure that the charity fulfils its objectives and complies with the requirements of the Charities Commission.

The day-to day management of the charity is delegated by the Board of Trustees to the Centre Manager who attends the Trustees meetings to update the Trustees on developments and issues and to obtain instruction on the management of the charity.

Health and Safety

The charity is always concerned to ensure health and safety at work and within its services, to this end it has a full range of policies which are reviewed and updated regularly.

Risk management

The board of Trustees have conducted its own review of the major risks to which the Charity is exposed and systems have been established to mitigate those risks.

Page 3

HONEYCROFT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2022

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 04349015 (England and Wales)

Registered Charity number 1093845

Registered office

St Barnabas Hall Sackville Road Hove East Sussex BN3 3WF

Trustees

C L Olney H Buxey (resigned 31/1/2022) D Artunduaga Arriaga S Gaston C Brady J Vaughan (resigned 4/5/2022) K W Bonner S McGeough

Company Secretary

A R Silsby

Independent Examiner

M Partridge FCA Institute of Chartered Accountants in England and Wales Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Bankers

Metro Bank plc One Southampton Row London WC1B 5HA

Page 4

HONEYCROFT

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Honeycroft for the purposes of company law) 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).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company 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 11[th] February 2023 and signed on its behalf by:

K W Bonner - Trustee

Page 5

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HONEYCROFT

Independent examiner's report to the trustees of Honeycroft ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31st March 2022.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of 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 to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement 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 (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

M Partridge FCA Institute of Chartered Accountants in England and Wales Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA

Date: 22[nd] February 2023

Page 6

HONEYCROFT

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST MARCH 2022

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
-
Charitable activities
Nursery provision
271,913
Creche provision
-
Other trading activities
2
13,624
Investment income
3
31
Other income
482
Total
286,050
EXPENDITURE ON
Charitable activities
4
Nursery provision
323,995
NET INCOME/(EXPENDITURE)
(37,945)
RECONCILIATION OF FUNDS
Total funds brought forward
218,834
TOTAL FUNDS CARRIED FORWARD
180,889
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
2022
Total
funds
£
-
271,913
-
13,624
31
482
286,050
323,995
(37,945)
218,834
180,889
2021
Total
funds
£
2,214
282,393
760
13,243
42
67,216
365,868
297,414
68,454
150,380
218,834

The notes form part of these financial statements

Page 7

HONEYCROFT (REGISTERED NUMBER: 04349015)

BALANCE SHEET 31ST MARCH 2022

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
10
13,313
CURRENT ASSETS
Debtors
11
23,010
Cash at bank
150,956
173,966
CREDITORS
Amounts falling due within one year
12
(6,390)
NET CURRENT ASSETS
167,576
TOTAL ASSETS LESS CURRENT
LIABILITIES
180,889
NET ASSETS
180,889
FUNDS
13
Unrestricted funds
TOTAL FUNDS
Restricted
funds
£
-
-
-
-
-
-
-
-
2022
Total
funds
£
13,313
23,010
150,956
173,966
(6,390)
167,576
180,889
180,889
180,889
180,889
2021
Total
funds
£
17,445
40,724
166,527
207,251
(5,862)
201,389
218,834
218,834
218,834
218,834

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st March 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 8

HONEYCROFT (REGISTERED NUMBER: 04349015)

BALANCE SHEET - continued 31ST MARCH 2022

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 11[th] February 2023 and were signed on its behalf by:

K W Bonner - Trustee

The notes form part of these financial statements

Page 9

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, 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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, and on that basis the charity is considered to be a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations and Grants

Income from donations, and grants, is included in incoming resources when these are receivable, except as follows:

When donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Nursery Fees

Fee income for provision of nursery services is included in incoming resources when the service has been provided, or, if amounts invoiced relate to services both before and after the period end, then in proportion to services provided, with the balance being deferred.

Other Income

Other income is recognised in the period in which the Charity is entitled to the receipt and the amount can be measured with reasonable certainty. Income is deferred only when the Charity has to fulfil conditions before becoming entitled to it, or where the donor has specified that the income is to be treated as the funding of a future period.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

continued...

Page 10

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2022

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - 10% on cost - Plant and machinery 25% on reducing balance

The Charity does not capitalise assets costing under £500.

Recognition and measurement

Fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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.

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

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Operating leases

All leases are treated as operating leases. Their annual rentals are charged to the Statement of Financial Activities on a straight-line basis over the term of the lease.

2. OTHER TRADING ACTIVITIES

Rent received
Other income
2022
£
11,291
2,333
13,624
2021
£
2,967
10,276
13,243

continued...

Page 11

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2022

3. INVESTMENT INCOME

Deposit account interest
4.
CHARITABLE ACTIVITIES COSTS
Nursery provision
5.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Toys, Equipment and Materials
Depreciation
6.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
Independent Examiner's fee
Rent under an operating lease
Direct
Costs (see
note 5)
£
174,589
2022
£
31
Support
costs
£
149,406
2022
£
172,864
1,725
-
174,589
2022
£
4,132
2,094
35,000
2021
£
42
Totals
£
323,995
2021
£
169,841
1,501
554
171,896
2021
£
4,197
2,058
30,000

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st March 2022 nor for the year ended 31st March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st March 2022 nor for the year ended 31st March 2021.

continued...

Page 12

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2022

8.
STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Playgroup
Management and administration
No employees received emoluments in excess of £60,000.
Key Management Personnel remuneration amounted to £40,820 (2021: £39,621).
2022
£
212,129
10,943
7,193
230,265
2022
17
3
20
2021
£
217,822
5,968
2,260
226,050
2021
19
4
23
9.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2,214
Charitable activities
Nursery provision
282,393
Creche provision
760
Other trading activities
13,243
Investment income
42
Other income
67,216
Total
365,868
EXPENDITURE ON
Charitable activities
Nursery provision
296,860
NET INCOME/(EXPENDITURE)
69,008
Restricted
funds
£
-
-
-
-
-
-
-
554
(554)
Total
funds
£
2,214
282,393
760
13,243
42
67,216
365,868
297,414
68,454

continued...

Page 13

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2022

9.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Restricted
fund
funds
£
£
RECONCILIATION OF FUNDS
Total funds brought forward
149,826
554
TOTAL FUNDS CARRIED FORWARD
218,834
-
10.
TANGIBLE FIXED ASSETS
Improvements
to
Plant and
property
machinery
£
£
COST
At 1st April 2021 and 31st March 2022
240,391
47,357
DEPRECIATION
At 1st April 2021
223,721
46,582
Charge for year
2,084
2,048
At 31st March 2022
225,805
48,630
NET BOOK VALUE
At 31st March 2022
14,586
(1,273)
At 31st March 2021
16,670
775
11.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Trade debtors
15,510
Other debtors
-
Prepayments and accrued income
7,500
23,010
9.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Restricted
fund
funds
£
£
RECONCILIATION OF FUNDS
Total funds brought forward
149,826
554
TOTAL FUNDS CARRIED FORWARD
218,834
-
10.
TANGIBLE FIXED ASSETS
Improvements
to
Plant and
property
machinery
£
£
COST
At 1st April 2021 and 31st March 2022
240,391
47,357
DEPRECIATION
At 1st April 2021
223,721
46,582
Charge for year
2,084
2,048
At 31st March 2022
225,805
48,630
NET BOOK VALUE
At 31st March 2022
14,586
(1,273)
At 31st March 2021
16,670
775
11.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
£
Trade debtors
15,510
Other debtors
-
Prepayments and accrued income
7,500
23,010
Total
funds
£
150,380
218,834
Plant and
machinery
£
47,357
46,582
2,048
48,630
(1,273)
775
2022
£
15,510
-
7,500
23,010
Totals
£
287,748
270,303
4,132
274,435
13,313
17,445
2021
£
28,171
10,818
1,735
40,724

continued...

Page 14

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2022

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Social security and other taxes
Other creditors
Accrued expenses
2022
£
1,890
1,221
3,279
6,390
2021
£
3,190
614
2,058
5,862

13. MOVEMENT IN FUNDS

Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Restricted funds
BHCC
TOTAL FUNDS
At 1/4/21
£
218,834
218,834
Incoming
resources
£
286,050
286,050
At 1/4/20
£
149,826
554
150,380
Net
movement
At
in funds
31/3/22
£
£
(37,945)
180,889
(37,945)
180,889
Resources
Movement
expended
in funds
£
£
(323,995)
(37,945)
(323,995)
(37,945)
Net
movement
At
in funds
31/3/21
£
£
69,008
218,834
(554)
-
68,454
218,834

continued...

Page 15

HONEYCROFT

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST MARCH 2022

13. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
BHCC
TOTAL FUNDS
Incoming
resources
£
365,868
-
365,868
Resources
Movement
expended
in funds
£
£
(296,860)
69,008
(554)
(554)
(297,414)
68,454

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31st March 2022.

15. CONTROL

The company was controlled throughout the current and previous periods by its Trustees by virtue of the fact that each Trustee has a vote at meetings of the Trustees.

Page 16