REGISTERED COMPANY NUMBER: 04899075 (England and Wales) REGISTERED CHARITY NUMBER: 1102007
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
FOR
CLEETHORPES CHILDCARE
CLEETHORPES CHILDCARE
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 8 |
| Independent Examiner's Report | 9 | ||
| Statement of Financial Activities | 10 | ||
| Balance Sheet | 11 | ||
| Notes to the Financial Statements | 12 | to | 17 |
| Detailed Statement of Financial Activities | 18 | to | 19 |
CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 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 31 August 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
The Charitable Objectives of Cleethorpes Childcare are:
In accordance with the Aims of the adopted Memorandum and Articles of Association of the Pre-school Learning Alliance:
To enhance the development and education of children primarily under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups and by:
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Offering appropriate play, education and care facilities and training courses, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability
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Encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs
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Instigating and adhering to and furthering the aims of the Pre-school Learning Alliance
Activities:
The Work of the Executive Committee
The trustees confirm they have referred to the guidance contained in the Charity's Commission's guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.
Professional memberships & advisors
We continue to be fully paid up members of the Early Years Alliance (formerly Pre-school learning Alliance), a membership organisation offering online training and regular updates of information and advice relating to the Early Years Sector which supports the development of services within Cleethorpes Childcare. The General Manager continues to represent Cleethorpes Childcare as a trustee for the national Charity.
HR service advice and support continues to be accessible through Beetenson & Gibbon Solicitors on an as-and-when basis which meets our requirements alongside the Lawcall advice service we continue to access through our Early Years Alliance membership.
Fundraising and events
Fundraising and Events have been discussed within the main committee agenda. There have continued to be very limited opportunities for fundraising this year due to increasing financial pressures placed on families alongside post pandemic cautions.
A special fun day took place on 28th May at Signhills Academy to celebrate the Platinum Jubilee of HM Queen Elizabeth II which was well attended by families and friends. Although this was not specifically aimed at raising funds, we received donations from local businesses and held a raffle. Trustees and staff volunteered their time for the event and 2 members of staff were also finally publicly presented with long-service awards, another activity which had been postponed due to the Coronavirus Pandemic. As a public event, we saw new families and previous children join us and received lovely comments about how enjoyable to event was.
We held a public open morning at each pre-school setting in June 2022, promoting public awareness and potential admissions for future children. These were limited in attendance however feedback from families that visited was positive and gained additional children to start in our pre-schools over the coming months.
Welcome meetings were again held with parents individually and by appointment to continue appropriate distancing and hygiene. Childcare Managers and administration staff worked alongside each child's keyperson to check paperwork and registrations, discuss any concerns and support settling their child into our settings. This supported new families and children with a smooth transition and reassured parents of our level of care, and specific measures we continue to have in place to protect children, parents and staff.
Easyfundraising is proving to be a small but steady income received from retailer donations when parents/ staff and other family members purchase through the Easyfundraising app. In a similar element, we are also registered with Amazon Smile and have received small donations over the year. As these require only general promotion to families mainly through the Famly app and Facebook page, this has very minimal effort to support our fundraising efforts.
Concerts at Christmas and end of year were reinstated this year following previous Coronavirus restrictions on event numbers. These were slightly limited in number of places offered per child and we continued to promote our Name Cards to promote fundraising.
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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
OBJECTIVES AND ACTIVITIES
Public relations and marketing
In addition to the Pre-school open days and 'word of mouth', we also receive free advertising from Families First, an online service provided by North East Lincolnshire Council. Families First support families accessing free funding entitlements, giving out a list of all registered providers within the authority. They also have a Facebook page and website. This year, they have again enabled individual providers to advertise through their Facebook page to promote parental take up of childcare due to Coronavirus issues regarding parental confidence This has been accessed by both Highgate and Signhills Pre-schools however, it has appeared to have made very little difference to either setting.
Signhills Infant Academy have supported promotion for Hardys Den out of school club through a flyer which is incorporated into their admissions pack for parents. This usually results in new enquiries over the year. As always, many parents access our settings for their youngest children once a child moves on to school and so we remain confident that our service continues to meet the needs of our community.
The Famly app has continued to grow and newsfeed communication alongside personal and team messaging has been successful in keeping families who are already registered with us up-to-date.
Facebook and our website, www.cleethorpeschildcare.co.uk are our main methods of communicating awareness of our organisation to the general public and we have seen an increase in new applications for each of our provisions through our website enquiry form, rather than phone calls to our office. The enquiries are followed up with a phone call to families to gain further insight into what is required and families are then advised on admission expectations such as start dates, registration process and waiting list times.
We continue to value the close relationships we share with our local Academies and Family Hubs (Children's Centres) and are grateful for their promotion of our services through signposting.
ACHIEVEMENT AND PERFORMANCE
General
This year we have continued to focus on consolidation and maintaining presence within the community to promote long term sustainability in unpredictable post-pandemic circumstances. We have also concentrated on supporting staff to return to full working practice and catching up with professional development and practices which have been revised.
Our work with Intergenerational projects such as toddler group at Rivelin Care home, alongside our search for security in premises and/or expansion of provision have again been on hold this year whilst we focussed on maintaining viability after Coronavirus. We anticipate these will be revised and reviewed once a more certain market is established.
We have continued to invest in apprentices, with a level 3 apprentice starting at Highgate Pre-school in September 2021 and a second apprentice working towards level 2 from January 2022 at Signhills Pre-school.
In November 2021, we were randomly selected for a National Minimum Wage audit by HMRC. The requested range of documentation was supplied and discussed in depth between the allocated HMRC officer and the General Manager, as a Director for Cleethorpes Childcare. A full report was then provided by HMRC to demonstrate full compliance with the regulations.
Signhills Pre-school and Hardys Den out of school club were inspected by Ofsted in December 2021. This proved to be a challenging and thorough routine inspection which provided a successful GOOD outcome. Signhills and Hardys Den team were supported in their inspection by the Childcare Manager from Highgate Pre-school due to the General Manager being on annual leave and external support was also received from the Local Authority Early Years Education Consultant.
In July 2022, The General Manager worked alongside the Childcare Manager for Highgate Pre-school to identify new ways of working with children who are identified as needing additional support within pre-school and set up a new strategy for specific intervention time to be allocated to children who would either continue or start in pre-school and would be implemented from September 2022, following in depth discussions with key people who would be implementing the strategy in line with the SEN Code of Practice. Cleethorpes Childcare committed to supporting this strategy on a trial basis for the Autumn term due to identified issues accessing Early Years Inclusion Funding.
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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
ACHIEVEMENT AND PERFORMANCE
Inclusion
This year staff have continued to support one child with one-to-one care and education, accessing Early Years Inclusion Funding to support this work. Offering care at this level incurs additional staffing, meetings, support for the family, training and paperwork, all of which have been undertaken by knowledgeable, caring and professional staff. The funding received does not fully cover the cost of delivering one-to-one care for a child and we only apply for additional support where children are unable to be fully integrated into the setting without it. Inclusion funding through the Local Authority has proved problematic to apply for this year as more demands have been made on the allocated LA spending pot. Applications have been reduced between application and acceptance and application dates were not set on a regular basis so applications have been sporadic. This has resulted in less time allocated to children who have been granted funds despite the child's needs and staff commitment to support them.
Inclusion support from North East Lincolnshire Council has proven to be a significant challenge this year. Some staff within the Authority were not replaced in posts and the level of interactions and support for children, families and staff created additional pressures on staff on a daily basis. Children's Centre work had been pared down over the pandemic period with very little support and service for children needing low levels of professional intervention. Paired with an increase in additional support needed for an increasing number of children starting our pre-schools having been born in lockdown and being identified as needing further transitional time to build attachments, develop language and social skills, staff worked in new and creative ways to develop positive relationships with the children and their families. Funding for some additional support was received through the Covid fund (Health) and a small amount was received to support transitions however, in reality, the impact of the pandemic alongside low levels of external support were not quick fixes for the children and further children were identified for referrals to Access Pathway or Early Help and liaisons with additional external professionals such as Health Visitors, Social Workers and Speech and Language Therapist.
We have named Special Educational Needs Co-ordinators (SENCo's) in each setting and each setting Manager, Deputy Manager and SENCo are trained at Level 2 in Safeguarding to enable us to professionally support children and their families through specific strategies and interventions. These qualified staff are able to support other team members with signposting, monitoring, report writing and interventions on a daily basis which leads to a second nature approach to inclusion and respect and dignity for children and families. Setting managers and SENCo's continue to attend network, webinars and training meetings and disseminate information and knowledge to the rest of their staff team to enhance best practice in meeting the individual needs of all children attending our settings.
We have received Early Years Pupil Premium (EYPP) funding this year however this remains an unpredictable amount which is received almost a term after a child becomes eligible. This fund is granted with parental permission for 3 & 4 year old children, whose parents meet set criteria and is used to provide financial or developmental support for children in need. This year we have used the funding to continue with Yoga sessions in each pre-school as we identify the support for physical and emotional wellbeing of all of our children.
Quality Assurance
The General Manager works alongside each setting manager to monitor and evaluate practice within each childcare provision, in turn informing staff development and progression. Weekly staff team meetings provide opportunities for all employees to address current issues in a timely manner which may also lead on to revisions in policies or procedures.
Maintaining a healthy environment for adults and children has remained high on our agenda this year with additional cleaning routines remaining in place following the pandemic. Wellbeing of our children, staff and families is well supported with opportunities for informal discussions, more formalised meetings, return to work interviews for staff following absences and signposting to appropriate support services.
North East Lincolnshire Local Authority provide support for our settings through Early Years Educational Advisor/ Area SENCO input. Managers and staff members work alongside the advisor to enhance quality and promote excellent practice within the settings. Individual staff members are supported in development through an induction process, 1-1 meetings and supervision meetings/ observations of practice.
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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
ACHIEVEMENT AND PERFORMANCE
Staff Training and Development
Staff members undertake and update core elements of training to support their professional development which includes Safeguarding, Paediatric First Aid, Understanding and Addressing Behaviour, Prevent duty and Food Hygiene & Safety in the form of a short course, workshop or online training refresher through Educare.
Staff members have received support to undertake training courses, and workshops over the year including:
| Safeguarding (inc. refresher) | Level 1 (5 members) |
|---|---|
| Safeguarding (inc. refresher) | Level 2 (4 members) |
| Paediatric First Aid | Level 3 (7 members) |
| Food Hygiene | Level 2 (7 members) |
| Early Years & Childcare (Apprenticeship) | Level 3 (1 member) |
| Early Years & Childcare (Apprenticeship) | Level 2 (1 member) |
| Prevent Duty | (8 members) |
| Health & Safety in Early Years | (1 member) |
| Infection Control | (16 members) |
Staff undertaking training are supported financially and with workplace release and at degree level with additional mentor support meetings.
The General Manager has continued her representation to the Early Years Alliance throughout this year as a Trustee for the national organisation and a member of the Audit Committee though due to Coronavirus, representation at meetings has been virtual. The General Manager also represents the Early Years Private, Voluntary and Independent sector at North East Lincolnshire Schools Forum. Committee members recognise and support these roles for the General Manager's continuing development as information and skills are shared and developed for the benefit of both organisations.
Induction for new committee members took place in January 2022, following the Annual General Meeting elections. Members commented that they found this a very useful refresher and overview of the organisation, and that it helps them to better understand their roles and responsibilities.
Students and Volunteer Placements
Student placements began to increase towards the summer term 2022 with 4 students gaining experience within pre-school. Following the pandemic, the students were keen to catch up with work experience opportunities to support their applications for further education routes and as always, we are grateful for the new ideas and additional support they share with our staff teams.
Due to continued limitations on events and activities over the year, an estimated total of 90 volunteer hours and 100 student volunteer hours have been undertaken.
Visitors and liaisons
We continue to work with a broad range of external professionals to support children and staff. This year we have received support and liaised with Speech & Language therapists, Early Help team, Health Visitors, Head teachers, Early Years & Families First and social care teams.
Cleethorpes Childcare continues to operate as a preferred provider for The Hub Children's Centres and in particular Highgate Family Hub (Children's Centre) however, the presence of workers within Highgate Hub has been exceptionally low since the start of the pandemic, reducing the opportunities for community support and informal advice.
Professional Advisors
We have sought advice throughout the year from Professional Advisors, which are: HSBC UK, PO Box 68, 130 New Street, Birmingham, B2 4JU Smethurst & Co LLP, 12 Abbey Road, Grimsby, DN32 0HL Lawcall, Early Years Alliance, 50 Featherstone Street, London, EC1Y 8RT Early Years Alliance Membership and Insurance, 50 Featherstone Street, London, EC1Y 8RT Dataplan Payroll services, 1 Prince Albert Gardens, Grimsby DN31 3AG
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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
FINANCIAL REVIEW
Financial review
This relates to the enclosed financial statement as agreed by the Executive Committee and in accordance with the accounting procedures determined by Companies House and the Charity Commission.
The main source of income for the pre-school groups continues to be from Flexible Funding Entitlement (FFE) for 2, 3 and 4 year old children attending our settings. We have a reasonable amount of children who are eligible to claim 30 hours funding entitlement from the term after their third birthday however, this funding can also be banked to be used during holidays at Hardys Den. Attendance has been lower for the first half of the year however, as restrictions began to ease, we looked forward to a significant increase in attendance as well as a healthy waiting list which enables us to predict future funding.
Additional income is from fees in Hardys Den and for pre-school children not eligible for FFE, those taking sessions in addition to their FFE capacity or from children who attend the pre-school lunch clubs. Fees are reviewed annually to ensure they remain affordable to parents, maintain sustainability of the provisions, reflect local pay scales and are competitive within the marketplace. As recruitment and retention of staff is becoming a growing challenge for the Early Years Sector, we recognise we need to review our pay structure whilst taking account of increases in National Minimum Wage, to ensure we attract the highest standard of candidates.
Further income is raised from fundraising activities throughout the year to enable us to enhance children's resources and experiences. Pre-school children are asked to pay a resource/consumables contribution which remained at £1 per child per session, with the majority of families paying this within the allocated timescales, in accordance with our fees policy and terms and conditions. The initial pre-school registration fee was frozen again this year despite ongoing increases in our expenditure for items such as uniform and therefore a decision was taken to only offer one item of uniform to each preschool registration with the remaining fee supporting the cost of Famly software, printing welcome booklets/ prospectus, providing badges and book-bags along with administration time for this preparation. This is reviewed as a minimal one-off cost to parents whilst Hardys Den administration fee is charged and reviewed annually. Registration fees can present a barrier for entry to our settings as parents are under increasing pressures of Cost of Living and impending fuel rate increases however the majority fully understand the reasons for this cost and we are able to support some parents with payment plans so their child's start date is not delayed. On occasions, the registration fee may be waived at the General Managers discretion due to a child's individual circumstances.
The Famly software has continued to support us with invoicing and enables parents to see their balance and payments due at a glance. Fee payments continue to be monitored to ensure we have a sustainable cash-flow. We have continued to significantly reduce cash payments for fees which has meant all payments have been made directly through online banking. This alleviates time for childcare managers and supports direct accountability and recording of payments, whilst reducing the risks of holding cash on our premises. This has not proved to be a barrier to parents with many preferring this payment method, once established however, we do also have a very low level of cash fee income. Good communication between families and the administration team ensure that we offer all opportunities for parents to pay under mutually agreed terms. Outstanding fees are a regular agenda item at committee meetings and the Finance Administrator provides updates to each setting manager to allow them to monitor payments from their own families, enabling us to make initial approaches for debtor accounts informally, often then avoiding escalation. We continue to recover debts via Money Claim Online (MCOL) online where all other attempts have failed.
The ongoing increases to the National Minimum Wage and National Living Wage, coupled with low increases in FFE funding rates continues to challenge our financial viability due to the majority of our expenditure being for staff costs. Increases in employer pension contributions are also factored into our predicted financial expectations and implemented through the Nest and Halifax pension schemes. We work closely with Dataplan to ensure we meet all requirements for HMRC payroll and have been working at moving towards fully salaried staff over recent months to provide reassurances and consistency for our teams.
Guarantors
Members of the Charitable Company guarantee to contribute an amount not exceeding £1 to the assets of the Charitable Company in the event of winding up. The total number of such Guarantors at 31st August 2022 was 112.
Reserves
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Reserves are currently held to support Cleethorpes Childcare in meeting future potential expenditure: - Recruitment and training costs
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Three months working reserves to cover staff redundancies and the winding up of the business, should this become necessary
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Increase to National Minimum & Living Wage and to pension contributions due to no planned increase in Early Years Entitlement
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Development of additional childcare provision to enhance security in lease of premises
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Unexpected/emergency costs associated with national closures and Coronavirus
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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
FINANCIAL REVIEW
Risk Review
This year has continued proved a challenge for all charities and businesses and we recognise that we have been well placed and fortunate to have achieved as much as we have over the year. We are never complacent and continuously review our current and future market position to ensure we are in touch with the needs of the local community through completion and review of a Business Plan, Risk Analysis and regular Executive Committee meetings. Although trustees are not aware of any major risks to which the charity has been exposed, concerns have been noted regarding the rates paid to providers for Flexible Funding Entitlement in light of escalating expenditure and we constantly check the need for resource purchases as well as undertaking a full evaluation of post whenever a staff position becomes vacant.
We continue to have concerns regarding the potential a School/Academy has to cease a lease agreement, in relation to sustainability. This risk continues to be monitored and reported at committee meetings and strategies to secure continuing viability have been implemented to confirm we remain a going concern. We continue to seek security of tenure in suitable premises within our current community base and remain aware of potential and suitable properties as they become available in our local area.
The Trustees ensure the agenda for each meeting promotes full monitoring and evaluation of government / local challenges to mitigate risk and the General Manager has good national and local networks to remain aware of current and potential issues.
PLANS FOR FUTURE PERIODS
Future Sustainability
We anticipated challenges with lower birth rates in our community and continued to limit recruitment of new staff and adjust expenditure where we have been able. Continuing rising expenditure for parents as predicted fuel increases affect the cost of living has proved to reduce our overall occupancy levels. The two pre-school open days in the summer term helped to provide some public awareness of availability of places and increased our anticipated number of children for the coming year. In reality, further investment in maintenance and repairs to premises and outdoor spaces is needed however, the settings remain safe, clean and are refreshed frequently to support children's learning and adult well-being whilst we continue to seek donations and project funding.
In addition, there has been a significant increase in children needing additional support to access their learning and development. Inclusion of all children within our settings has always been a key focus on meeting our aims and objectives however this has also placed increasing challenges on staff and additional financial pressures due to increased ratio's and workloads. We anticipate we can minimise some of the impact of these increases by providing an intervention strategy programme to enable staff to provide focussed time with individual children whilst gaining new skills within the staff teams. A trial of our project will operate at Highgate Pre-school for the Autumn term and will be evaluated for impact to ensure the project meets its aims.
The premises lease at Signhills has been re-visited by the Department for Education and an interim lease was drawn up due to the time taken in processing a full renewal. Signhills Academy continue to support our service and recognise the benefits of early years provision on the site so have been able to fully support the lease renewal. Concerns around Highgate Pre-school have developed due to the adjoining Children's Centre closure in line with changing Government policies and the rooms alongside our pre-school have been unoccupied since the beginning of the Covid Lockdowns. As much as this creates uncertainty in community support for the local area, the lease currently rolls forward for Highgate Pre-school as tenants, and trustees continue to hold discussions around the lease renewal. Continuity of service for our local community and high quality and standards remain an ongoing focus for discussions at board meetings.
Our ability to react to uncertainty relies on the expertise and experience of a well-established staff team working alongside trustees. The skills balance enables us to be able to make clear and fair judgements and to address and react quickly to risks when they are presented.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
Structure
Cleethorpes Childcare consists of: - Signhills Pre-school
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Highgate Pre-school
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Hardys Den out-of-school club
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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Appointment of Members
All member families are invited to attend the AGM; a member is an adult representative for a child who attends any of the settings of Cleethorpes Childcare. As in previous years, a meeting date was agreed and publicised at each of Cleethorpes Childcare provisions to allow parents and member representatives to attend. An Annual General Meeting was held in November 2021 at Signhills Academy. Several members were re-appointed with an additional member enrolling into the trustee position. Suitable checks and registrations were undertaken alongside the Trustee Induction programme to ensure all elected members fully understood their responsibilities and duties prior to the first committee meeting which followed the AGM. At the first meeting, officers were voted into post by fellow trustees. Training, both formal and informal, is offered for committee members should they wish to further develop their skills and knowledge through Educare, offered as part of our Early Years Alliance membership. In this voluntary role, committee members offer their time and expertise in the decision making of Cleethorpes Childcare. Elected members often offer practical time to carry out further duties throughout the year within the childcare provisions or through fundraising, community events (Platinum Jubilee, open days) and activities.
This year, we have once again found it particularly difficult to recruit new committee members into Cleethorpes Childcare as a knock-on effect of Coronavirus has left uncertainty and less member families. We continue to work with staff to encourage and support connections with families and identify potential new members who may become trustees. This continues year on year and has been incorporated into all meetings between staff and parents as a less formal approach to trustee recruitment with trustees also supporting open days and welcome meetings with parents to give face-to-face introductions.
Staffing
The executive committee have a responsibility to ensure that staff are employed within the company to meet company objectives. A General Manager is employed to oversee the day-to-day running of the work of Cleethorpes Childcare within each provision and in addition to this, an average of 23 members of staff have worked to provide high quality care and education for the children who have attended, offering support and information to parents and family members. There have been some changes to staff over this year as employees moved onto other posts, most of which outside the childcare sector. Trustees took a decision to support an apprenticeship from September 2021 with a second apprentice being appointed in January 2022. The apprenticeship programme has proven useful to support new interest in the childcare sector and has proven to be beneficial for Cleethorpes Childcare as candidates have progressed in their skills and education within our own ethos and sharing new and fresh ideas with their teams.
The continuing localised falling birth rates of children alongside the uncertainty for parents to share their children with others following Coronavirus pandemic impacting on the number of sessions taken and the move for home and hybrid working for families meant a pause in replacing any staff leavers as we assessed our ability to ensure long term sustainable employment. As appropriate for each individual and within a core training offer, all staff are supported to develop their skills within the organisation and internal progression is also encouraged when vacancies arise.
Trustees considered changes to working patterns, caution of families following the Pandemic and the rising numbers of children who were being identified as needing additional support with their learning and development whilst remaining sustainable and working within our aims and objectives. Trustees were extremely grateful for the flexibility, understanding, commitment, dedication to the children and each other shown by staff over this continuingly unpredictable year. Some staff continued to work from home with a steadily increasing attendance in the administration office.
The General Manager, alongside Childcare Managers, continue to report to the executive committee on a regular basis at online/virtual meetings, interspersed with face-to-face meetings, and communicated with executive members as required to deal with matters that arose during the periods between meetings.
Policies
This year there has been very little to change on our policies however the General Manager has begun to review some policies in light of post pandemic influences on the organisation. All policy changes are discussed with staff and Trustees before agreement, allowing full consultation with those who are tasked with implementation. Paper copies of policies are made available within each setting and through our website which members, staff and trustees access using a secure password acquired on joining the organisation.
The business plan and organisational risk assessment was reviewed by trustees with staff input to allow consideration for future viability of Cleethorpes Childcare, giving opportunity to look at change and potential for new projects.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 04899075 (England and Wales)
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CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022
Registered Charity number 1102007
Registered office Signhills School Hardys Road Cleethorpes N E Lincs DN35 0DN
Trustees B Rodgers-Gibbs (resigned 2.2.22) C Moore L Pendred L Hammond J Speck (resigned 2.2.22) C Wray S Cooper (appointed 2.2.22) (resigned 10.11.22) C Squire (appointed 2.2.22) (resigned 1.3.22)
Independent Examiner Mrs H Spauls FCA ICAEW Smethurst & Co LLP 12 Abbey Road GRIMSBY DN32 0HL
Bankers HSBC PO Box 68 130 New Street Birmingham West Midlands B2 4JU
Solicitors BG Solicitors LLP 27 Osborne Street Grimsby N E Lincs DN31 1JB
Cleethorpes Childcare is a charitable company limited by guarantee, incorporated on 15 September 2003 and registered as a charity on 10 February 2004.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 30 January 2023 and signed on its behalf by:
C Moore - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)
Independent examiner's report to the trustees of Cleethorpes Childcare ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 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 ICAEW 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:
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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
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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
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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.
Mrs H Spauls FCA ICAEW Smethurst & Co LLP 12 Abbey Road GRIMSBY DN32 0HL
2 February 2023
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CLEETHORPES CHILDCARE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022
| Unrestricted Designated fund fund Notes £ £ INCOME AND ENDOWMENTS FROM Incoming resources from charitable activities 309,336 - Activities for generating funds 2 1,694 - Total 311,030 - EXPENDITURE ON Costs of generating funds 696 - Charitable activities Childcare 284,277 - Premises costs 24,696 1,067 Total 309,669 1,067 NET INCOME/(EXPENDITURE) 1,361 (1,067) RECONCILIATION OF FUNDS Total funds brought forward 69,926 1,067 TOTAL FUNDS CARRIED FORWARD 71,287 - |
Restricted fund £ 13,828 - 13,828 - 13,828 - 13,828 - - - |
31.8.22 Total funds £ 323,164 1,694 324,858 696 298,105 25,763 324,564 294 70,993 71,287 |
31.8.21 Total funds £ 291,925 1,273 293,198 1,743 292,025 36,623 330,391 (37,193) 108,186 70,993 |
|---|---|---|---|
The notes form part of these financial statements
Page 10
CLEETHORPES CHILDCARE (REGISTERED NUMBER: 04899075)
BALANCE SHEET 31 AUGUST 2022
| Notes FIXED ASSETS Tangible assets 6 CURRENT ASSETS Stocks 7 Debtors 8 Cash at bank and in hand CREDITORS Amounts falling due within one year 9 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 12 Unrestricted funds TOTAL FUNDS |
31.8.22 £ 3,598 696 6,479 108,741 115,916 (48,227) 67,689 71,287 71,287 71,287 71,287 |
31.8.21 £ 5,194 702 9,786 110,730 121,218 (55,419) 65,799 70,993 70,993 70,993 70,993 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
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 30 January 2023 and were signed on its behalf by:
C Moore - Trustee
The notes form part of these financial statements
Page 11
CLEETHORPES CHILDCARE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 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.
Income
Grants are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
Donations and gifts are recognised in the Statement of Financial Activities when received.
Incoming resources for the provision of pre-school places and from investments are recognised in full in the Statement of Financial Activities when receivable.
Resources expended
Resources expended are recognised in the period in which they are incurred.
Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses.
Depreciation is provided on all tangible fixed assets at rates calculated to write off their cost, less estimated residual value, of each asset on a systematic basis over their expected useful lives as follows -
| Land and buildings | - | 20% on reducing balance or over lease term |
|---|---|---|
| Fixtures, fittings and equipment | - | 20% on cost |
Fixed assets are not capitalised if they cost less than £100.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds.
Designated funds are unrestricted funds earmarked by the management committee for particular purposes.
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.
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.
Leasing commitments
Rents payable under leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
Page 12
CLEETHORPES CHILDCARE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
2. ACTIVITIES FOR GENERATING FUNDS
| ACTIVITIES FOR GENERATING FUNDS | ||
|---|---|---|
| 31.8.22 | 31.8.21 | |
| £ | £ | |
| Fundraising events | 933 | 416 |
| Uniform sales | 761 | 857 |
| 1,694 | 1,273 |
3. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
4.
| 31.8.22 | 31.8.21 | |
|---|---|---|
| £ | £ | |
| Depreciation - owned assets | 2,631 | 7,790 |
| TRUSTEES' REMUNERATION AND BENEFITS | ||
| 31.8.22 | 31.8.21 | |
| £ | £ | |
| Trustees' salaries | 27,979 | 27,295 |
| Trustees' social security | 2,730 | 2,551 |
| Trustees' pension contributions to money purchase schemes | 838 | 1,092 |
| 31,547 | 30,938 |
The memorandum of association updated in May 2017 allows trustees of the charity to be a paid employee of the charity, but no trustee can be paid for their duties as a trustee.
Lorna Pendred has been paid for her employment as the general manager of the charity.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.
5. STAFF COSTS
| Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: Furtherance of the entity's activities Management and administration |
31.8.22 £ 243,780 13,554 9,772 267,106 31.8.22 20 3 23 |
31.8.21 £ 244,088 11,461 10,315 |
||
|---|---|---|---|---|
| 265,864 | ||||
| 31.8.21 19 3 22 |
No employees received emoluments in excess of £60,000.
Page 13
CLEETHORPES CHILDCARE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
6. TANGIBLE FIXED ASSETS
| Fixtures, fittings Land and and buildings equipment Totals £ £ £ COST At 1 September 2021 42,291 43,713 86,004 Additions - 1,035 1,035 At 31 August 2022 42,291 44,748 87,039 DEPRECIATION At 1 September 2021 41,029 39,781 80,810 Charge for year 1,106 1,525 2,631 At 31 August 2022 42,135 41,306 83,441 NET BOOK VALUE At 31 August 2022 156 3,442 3,598 At 31 August 2021 1,262 3,932 5,194 7. STOCKS 31.8.22 31.8.21 £ £ Stocks 696 702 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.8.22 31.8.21 £ £ Trade debtors 5,916 4,181 Other debtors 563 5,605 6,479 9,786 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.8.22 31.8.21 £ £ Trade creditors 897 (78) Social security and other taxes - 3,572 Other creditors 11,404 10,579 Accruals and deferred income 35,926 41,346 48,227 55,419 10. LEASING AGREEMENTS The following operating lease payments are committed to be paid: Land and Buildings 31.8.22 31.8.21 £ £ Expiring: Within one year 6,863 7,790 Between one and five years 28,737 - |
Fixtures, fittings Land and and buildings equipment Totals £ £ £ COST At 1 September 2021 42,291 43,713 86,004 Additions - 1,035 1,035 At 31 August 2022 42,291 44,748 87,039 DEPRECIATION At 1 September 2021 41,029 39,781 80,810 Charge for year 1,106 1,525 2,631 At 31 August 2022 42,135 41,306 83,441 NET BOOK VALUE At 31 August 2022 156 3,442 3,598 At 31 August 2021 1,262 3,932 5,194 7. STOCKS 31.8.22 31.8.21 £ £ Stocks 696 702 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.8.22 31.8.21 £ £ Trade debtors 5,916 4,181 Other debtors 563 5,605 6,479 9,786 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.8.22 31.8.21 £ £ Trade creditors 897 (78) Social security and other taxes - 3,572 Other creditors 11,404 10,579 Accruals and deferred income 35,926 41,346 48,227 55,419 10. LEASING AGREEMENTS The following operating lease payments are committed to be paid: Land and Buildings 31.8.22 31.8.21 £ £ Expiring: Within one year 6,863 7,790 Between one and five years 28,737 - |
Fixtures, fittings Land and and buildings equipment Totals £ £ £ COST At 1 September 2021 42,291 43,713 86,004 Additions - 1,035 1,035 At 31 August 2022 42,291 44,748 87,039 DEPRECIATION At 1 September 2021 41,029 39,781 80,810 Charge for year 1,106 1,525 2,631 At 31 August 2022 42,135 41,306 83,441 NET BOOK VALUE At 31 August 2022 156 3,442 3,598 At 31 August 2021 1,262 3,932 5,194 7. STOCKS 31.8.22 31.8.21 £ £ Stocks 696 702 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.8.22 31.8.21 £ £ Trade debtors 5,916 4,181 Other debtors 563 5,605 6,479 9,786 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.8.22 31.8.21 £ £ Trade creditors 897 (78) Social security and other taxes - 3,572 Other creditors 11,404 10,579 Accruals and deferred income 35,926 41,346 48,227 55,419 10. LEASING AGREEMENTS The following operating lease payments are committed to be paid: Land and Buildings 31.8.22 31.8.21 £ £ Expiring: Within one year 6,863 7,790 Between one and five years 28,737 - |
|---|---|---|
| Land and Buildings | ||
| 31.8.22 31.8.21 |
||
| £ £ |
||
| 6,863 7,790 |
||
| 28,737 - |
Page 14
CLEETHORPES CHILDCARE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
11. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Unrestricted Designated fund fund £ £ Fixed assets 3,598 - Current assets 115,916 - Current liabilities (48,227) - 71,287 - 12. MOVEMENT IN FUNDS Unrestricted funds General fund Designated fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund Designated fund Restricted funds Restricted fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Designated fund Restricted funds Restricted fund TOTAL FUNDS |
Restricted fund £ - - - - At 1.9.21 £ 69,926 1,067 70,993 70,993 Incoming resources £ 311,030 - 311,030 13,828 324,858 At 1.9.20 £ 100,707 7,467 108,174 12 108,186 |
31.8.22 31.8.21 Total Total funds funds £ £ 3,598 5,194 115,916 121,218 (48,227) (55,419) 71,287 70,993 Net movement At in funds 31.8.22 £ £ 1,361 71,287 (1,067) - 294 71,287 294 71,287 Resources Movement expended in funds £ £ (309,669) 1,361 (1,067) (1,067) (310,736) 294 (13,828) - (324,564) 294 Net movement At in funds 31.8.21 £ £ (30,781) 69,926 (6,400) 1,067 (37,181) 70,993 (12) - (37,193) 70,993 |
|---|---|---|
Page 15
CLEETHORPES CHILDCARE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
12. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Designated fund Restricted funds Restricted fund TOTAL FUNDS |
Incoming resources £ 286,451 - 286,451 6,747 293,198 |
Resources Movement expended in funds £ £ (317,232) (30,781) (6,400) (6,400) (323,632) (37,181) (6,759) (12) (330,391) (37,193) |
Resources Movement expended in funds £ £ (317,232) (30,781) (6,400) (6,400) (323,632) (37,181) (6,759) (12) (330,391) (37,193) |
|---|---|---|---|
| (37,181) (12) |
|||
| (37,193) |
A current year 12 months and prior year 12 months combined position is as follows:
| Net | ||||
|---|---|---|---|---|
| movement | At | |||
| At 1.9.20 | in funds | 31.8.22 | ||
| £ | £ | £ | ||
| Unrestricted funds | ||||
| General fund | 100,707 | (29,420) | 71,287 | |
| Designated fund | 7,467 | (7,467) | - | |
| 108,174 | (36,887) | 71,287 | ||
| Restricted funds | ||||
| Restricted fund | 12 | (12) | - | |
| TOTAL FUNDS | 108,186 | (36,899) | 71,287 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Designated fund Restricted funds Restricted fund TOTAL FUNDS |
Incoming resources £ 597,481 - 597,481 20,575 618,056 |
Resources Movement expended in funds £ £ (626,901) (29,420) (7,467) (7,467) (634,368) (36,887) (20,587) (12) (654,955) (36,899) |
Resources Movement expended in funds £ £ (626,901) (29,420) (7,467) (7,467) (634,368) (36,887) (20,587) (12) (654,955) (36,899) |
|---|---|---|---|
| (36,887) (12) |
|||
| (36,899) |
Purposes of designated and restricted funds
Restricted funds includes amounts received to assist with the inclusion of children and to provide free holiday provision for children entitled to free school meals.
Designated funds brought forward represent the carrying value of the new building at Signhills.
The balances relating to capital expenditure are adjusted each year in line with the depreciation of the assets acquired.
Page 16
CLEETHORPES CHILDCARE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022
13. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 August 2022.
Page 17
CLEETHORPES CHILDCARE
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022
| 31.8.22 | 31.8.21 | |
|---|---|---|
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Incoming resources from charitable activities | ||
| Nursery Education Grant | 230,949 | 175,822 |
| Other grants & donations | 7,241 | 47,229 |
| Fees from parents | 84,974 | 68,874 |
| 323,164 | 291,925 | |
| Activities for generating funds | ||
| Fundraising events | 933 | 416 |
| Uniform sales | 761 | 857 |
| 1,694 | 1,273 | |
| Total incoming resources | 324,858 | 293,198 |
| EXPENDITURE | ||
| Fundraising | ||
| Purchases for resale | 696 | 1,743 |
| Charitable activities | ||
| Wages | 193,855 | 190,527 |
| Social security | 9,791 | 7,854 |
| Pensions | 8,934 | 9,223 |
| Training | 1,144 | 1,154 |
| Consumables | 4,063 | 2,726 |
| Books, toys and games | 4,916 | 2,923 |
| Lunch costs and refreshments | 4,342 | 2,199 |
| Bad debts | 386 | 3,315 |
| Stationery | 3,062 | 3,260 |
| Telephone | 2,455 | 2,549 |
| Insurance | 1,342 | 1,318 |
| Subscriptions | 2,979 | 2,847 |
| Sundry expenses | 2,693 | 483 |
| 239,962 | 230,378 | |
| Premises costs | ||
| Rent and rates | 22,833 | 28,765 |
| Repairs and renewals | 299 | 68 |
| Depreciation of tangible fixed assets | 2,631 | 7,790 |
| 25,763 | 36,623 | |
| Support costs | ||
| Finance | ||
| Bank charges | 40 | - |
| Other | ||
| Trustees' salaries | 27,979 | 27,295 |
| Trustees' social security | 2,730 | 2,551 |
| Trustees' pension contributions | 838 | 1,092 |
| Carried forward | 31,547 | 30,938 |
This page does not form part of the statutory financial statements
Page 18
CLEETHORPES CHILDCARE
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022
| 31.8.22 | 31.8.21 | |
|---|---|---|
| £ | £ | |
| Other | ||
| Brought forward | 31,547 | 30,938 |
| Wages | 21,946 | 26,266 |
| Social security | 1,033 | 1,056 |
| Accountancy | 2,220 | 2,160 |
| Payroll | 1,357 | 1,227 |
| 58,103 | 61,647 | |
| Total resources expended | 324,564 | 330,391 |
| Net income/(expenditure) | 294 | (37,193) |
This page does not form part of the statutory financial statements
Page 19