Charity number 1104141 Company number 4649786
Kent Play Clubs
Trustees' Report and Accounts
31 January 2021
Kent Play Clubs Trustees' Report and Accounts Contents
| Page | |
|---|---|
| Legal and administration details | 1 |
| Trustees' report | 2 - 5 |
| Statement of Financial Activities | 6 |
| Balance sheet | 7 |
| Notes to the accounts | 8 - 12 |
| Independent Examiner's Report | 13 |
1
Kent Play Clubs
Legal and Administration Details
Charity registered number 1104141
Company number 4649786
Registered address
3 Raywood Office Complex Leacon Lane Charing Ashford Kent TN27 0ET
Trustees
P Dawson Ms K Donati S Ive Mrs A C Puttick
Senior management team
Trustees as detailed above Ms T Roper Ms D Kellers
Independent Examiner
Mr Daniel Valentine ACA Begbies Old Printers House Stone Street Cranbrook TN17 3HF
Bankers
Barclays Bank plc 9 St George's Street Canterbury Kent CT1 2JX
CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
Nationwide Building Society 75 High Street Ashford Kent TN24 8SF
2
Kent Play Clubs
Trustees' Report for the year ended 31 January 2021
The Trustees present their report and accounts for the year ended 31 January 2021.
The Trustees confirm that the Annual Report and accounts have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the charity's governing document, The Charities Act 2011 and 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) published on 16 July 2014.
Objectives and activities
The charitable company's principal activity during the year continued to be that of a non-profit making enterprise providing management of after school clubs and playgroups for children.
The objects are to:
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To promote, maintain, improve and enhance the education and development of children and young people ages 2-14 by the development of new, and the support of existing, out of school childcare clubs and holiday schemes.
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To advance the education and training of persons involved in the provision of such care, recreation and educational facilities.
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The relief of poverty by provision of advice, information and support to lone parent families and families on low income in deprived and rural areas.
Public benefit statement
The trustees confirm that they have referred to the guidance on public benefit issued by the Charity Commission when reviewing the charitable company's aims and objectives and in planning future activities.
Structure, governance and management
Kent Play Clubs (KPC) was incorporated as a company limited by guarantee and not having share capital on 28 January 2003 and was registered as a charity (no. 1104141) with effect from 4 June 2004. It is established under its Memorandum and Articles of Association as amended by special resolutions dated 9 May 2004 and 28 May 2010.
The trustees are responsible for the general control and management of the administration of the charity. Trustees are appointed at the Annual General Meeting and must consist of a minimum of 3 trustees and shall not be subject to a maximum level. A trustee appointed may be appointed by ordinary resolution. Only trustees retiring by rotation can be appointed at a general meeting.
In accordance with the charitable company's articles of association, S Ive retires by rotation and, being eligible, offer himself for re-election.
T Roper and D Kellers attend committee meetings to input but have no right to vote. However both of them make decisions on running the club on a daily basis in line with best practice and situations that arise.
Trustees
The trustees, (who are also directors for the purposes of company law), who served in the year are shown on page 1.
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Kent Play Clubs
Trustees' Report for the year ended 31 January 2021
Achievements and performance
This year has been the most challenging year for us as a Charity, because of the Covid-19 Pandemic. Schools have been closed for long periods twice in this financial year, as part of national ‘lockdowns’. The first particularly impacted the clubs, as schools were closed between April and late June, a period of time when clubs normally earn the funds to pay staff throughout the on-coming Summer Holidays.
When schools did return, parents were hesitant about sending their children to after-school clubs. Many parents were furloughed, or working from home, resulting in the clubs experiencing reduced demand. In addition, two other factors impacted on outcomes for clubs: many of the schools wanted to maintain distinct year group ‘bubbles’, resulting in increased staff costs; additional hygiene and social-distancing measures within the settings also increased costs.
The resulting financial impact on clubs has significantly reduced their ability to pay any Primary Purpose Contribution. Because the PPC is a contribution, not a fee, KPC has received significantly less income, and has supported the clubs with provision of services through its own reserves.
At times in this year, staff at KPC have had to be furloughed, and we have been grateful for the government’s support through the Job Retention Scheme, which paid up to 80% of staff salary. The Trustees made the decision to pay staff the additional 20% from our own reserves, in respect for their commitment and dedication to the work of the Charity.
The Trustees also re-evaluated the Charity’s Reserves Policy, to ensure that we could meet our obligations for 6 months wind-down costs, and redundancy payments, and voted that £70,000 would be the new figure that must be held.
Trustees have met on a monthly basis in the last 6 months of the financial year, to consider outgoings and projections, to ensure the financial security of the Charity.
Public benefit statement
The trustees confirm that they have referred to the guidance on public benefit issued by the Charity Commission when reviewing the charitable company's aims and objectives and in planning future activities.
Financial review
Income for the year amounted to £84,274 (2020: £102,447). Expenditure was £92,098 (2020: £100,101) resulting in a deficit for the year of £7,824. Funds at 31 January 2021 remain healthy at £113,545 (2020: £121,369), of which none were restricted.
Risk management
The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable the charity to lessen or mitigate those risks. The main risks that effect the charity are as follows:
The biggest threat to the charitable company's sustainability is the closure of clubs and difficulty in opening new clubs with the biggest burdens to bear being:
The impact of the Living Wage on After School Clubs
We have consulted with all clubs advising them of what we think their fees should increase to in order to keep them sustainable
The reduction in government funding but at the same time increases in legislative demand to have qualified staff running after school clubs
We have tried to aid and encourage staff to apply for whatever finance (like student loans) that are available to pay for any training they need.
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Kent Play Clubs
Trustees' Report for the year ended 31 January 2021
The absence of key personnel from the office at KPC
It would be hard to replace the childcare and KPC knowledge of a couple of members of staff by just employing someone new to cover the job of the manager or recruitment officer. The trustees have done their best to retain staff by a holistic approach to management, as it is not only about salaries, though these are reviewed regularly.
Reserves policy
Kent Play Clubs exists on self-sustaining income from the Primary Purpose Contributions that are received from the after school clubs that it supports. KPC has a three year commitment to newly formed clubs that it supports and a notice period of 3 months in the event of services being withdrawn (see Service Level Agreement). The intention of the KPC reserves is to fund:
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working capital
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shortfalls in income when income does not reach expected levels
The trustees have agreed that a designated General Reserve of £75,000 shall be maintained to ensure the charity could meet its obligations for 6 months wind down costs and redundancy payments. This reserves policy will be reviewed annually by the trustees.
Plans for the future
To strengthen and grow the clubs we already have.
To seek opportunities to open or take over the running of more after school clubs. To continue to try and generate more income to cover all our costs.
Pay policy for key management personnel
The trustees consider that they comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All trustees give their time freely and no trustee received remuneration in the year. Employee pay is reviewed on an annual basis.
Trustees' responsibilities
The Trustees are responsible for preparing the Trustees' report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company and charity law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of its income and expenditure for that period. In preparing these accounts, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP 2015 (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts;
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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Kent Play Clubs
Trustees' Report for the year ended 31 January 2021
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006 and the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
By order of the Board
- ….............. 2021
Mr P H Dawson Trustee
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Kent Play Clubs
Statement of Financial Activities
(incorporating an Income and Expenditure Account) for the year ended 31 January 2021
| Unrestricted Total Notes Funds 2021 £ £ Income from: Charitable activities Primary purpose contributions 46,497 46,497 Reimbursement of expenses 6,806 6,806 Other re-charges 817 817 Coronavirus Job Retention Scheme grants 29,849 29,849 Other income - - Investments Bank interest received 305 305 Total income 84,274 84,274 Expenditure on: Charitable activities 2 92,098 92,098 Total expenditure 92,098 92,098 Net movement in funds (7,824) (7,824) Reconciliation of Funds Total Funds at 1 February 2020 121,369 121,369 Total Funds at 31 January 2021 113,545 113,545 |
Unrestricted Total Funds 2020 £ £ 80,513 80,513 15,572 15,572 2,651 2,651 - - 3,016 3,016 695 695 102,447 102,447 100,101 100,101 100,101 100,101 2,346 2,346 119,023 119,023 121,369 121,369 |
|---|---|
The Notes to the Accounts form part of the Financial Statements
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Kent Play Clubs
Company no 4649786
Balance Sheet as at 31 January 2021
| Notes Fixed assets Tangible assets 4 Current assets Debtors 5 Cash at bank and in hand Creditors: amounts falling due within one year 6 Net current assets Net assets Represented by: - General unrestricted fund - Designated funds Total Funds 8 |
£ £ 2,239 7,129 106,340 113,469 (2,163) 111,306 113,545 38,545 75,000 113,545 2021 |
£ £ 1,626 4,534 118,121 122,655 (2,912) 119,743 121,369 76,369 45,000 121,369 2020 |
|---|---|---|
For the financial year ended 31 January 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Trustees' responsibilities;
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the members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;
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the trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of accounts.
The accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
The accounts were approved and authorised for issue by the Board of Trustees on …....................... 2021 and signed on its behalf by:
Mr P H Dawson Trustee
The Notes to the Accounts form part of the Financial Statements
8
Kent Play Clubs Notes to the Accounts for the year ended 31 January 2021
1 Accounting policies
Basis of preparation
The accounts have been prepared in accordance with 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) (issued on 16 July 2014), the Charities Act 2011, the Companies Act 2006, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and UK Generally Accepted Practice as it applies from 1 January 2015.
The accounts have been prepared on a going concern basis under the historical cost convention modified to include certain items at fair value.
The charity constitutes a public benefit entity as defined by FRS 102.
Fund accounting
The Unrestricted Fund is available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Designated funds are those that the trustees have designated for specific purposes but remain unrestricted funds.
Income recognition
All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.
Grant income is received from various sources. The grant is usually awarded for a specific period. If any proportion of the grant does not relate to the accounting period in question, the amount is deferred to the period to which it relates.
Expenditure recognition
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 settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis.
Expenditure on charitable activities comprises those costs incurred by the charity in delivery of its activities. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them.
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Only assets costing more than £100 are capitalised.
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives. A full year's depreciation is charged in the year of acquisition.
Fixtures & fittings 25% reducing balance Office equipment 25% reducing balance
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
Tax
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and 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.
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Kent Play Clubs Notes to the Accounts for the year ended 31 January 2021
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
Judgements and key sources of estimation uncertainty
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
2 Expenditure on charitable activities
| Staff costs Other staff costs Expenses paid on behalf of other clubs Rent Service charges Light and heat Repairs, maintenance & small equipment Printing and stationery Postage Telephone Computer and internet costs Insurance Accountancy and independent examination Other legal and professional costs Fundraising costs Sundry expenses Loss on disposal of assets Depreciation 3 Staff costs Gross salaries Employer's pension costs Employer's national insurance |
2021 £ 69,688 235 6,806 4,163 1,087 1,222 243 1,325 497 1,813 2,858 343 990 - - 24 58 746 92,098 2021 £ 67,947 1,394 347 69,688 |
2020 £ 68,889 860 15,572 3,530 860 658 145 2,279 496 1,830 1,700 335 990 515 270 263 367 542 100,101 2020 £ 67,724 1,133 32 68,889 |
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The average number of employees during the year was 5 (2020: 5).
No member of staff earned more than £60,000 during the year (2020: none)
During the year, no Trustee received any remuneration, benefits in kind or reimbursed expenses (2020: £nil).
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Kent Play Clubs Notes to the Accounts for the year ended 31 January 2021
4 Tangible fixed assets
| Cost At 1 February 2020 Additions Disposals At 31 January 2021 Depreciation At 1 February 2020 Charge for the year On disposals At 31 January 2021 Net book value At 31 January 2021 At 31 January 2020 5 Debtors Debtors Other debtors and prepayments 6 Creditors: amounts falling due within one year Due to suppliers VAT PAYE & NI Other creditors Accruals |
Office equipment £ 3,971 1,417 (2,012) 3,376 2,774 639 (1,954) 1,459 1,917 1,197 |
Fixtures & fittings £ 1,269 - - 1,269 840 107 - 947 322 429 2021 £ (1) 7,130 7,129 2021 £ 389 - 467 50 1,257 2,163 |
Total £ 5,240 1,417 (2,012) 4,645 3,614 746 (1,954) 2,406 2,239 1,626 2020 £ 1,942 2,592 4,534 2020 £ 219 1,219 484 - 990 2,912 |
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Kent Play Clubs Notes to the Accounts for the year ended 31 January 2021
7 Company limited by guarantee
The charitable company has no share capital, being a company limited by guarantee. Every member of the company undertakes to contribute in a winding up a sum not exceeding £1 whilst they are a member, or within one year after ceasing to be a member, towards debts and liabilities contracted before ceasing to be a member.
8 Movement in Funds
| General unrestricted fund Designated funds - General reserve - New clubs - Emergency fund - Subsidised places General unrestricted fund Designated funds - New clubs - Emergency fund - Subsidised places |
At 1 Feb 2020 £ 76,369 - 25,000 15,000 5,000 121,369 At 1 Feb 2019 £ 74,023 25,000 15,000 5,000 119,023 |
Income £ 84,274 - - - - 84,274 Income £ 102,447 - - - 102,447 |
Expenditure £ (92,098) - - - - (92,098) Expenditure £ (100,101) - - - (100,101) |
Transfers £ (30,000) 75,000 (25,000) (15,000) (5,000) - Transfers - - - - - |
At 31 Jan 2021 £ 38,545 75,000 - - - 113,545 At 31 Jan 2020 £ 76,369 25,000 15,000 5,000 121,369 |
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General reserve
This fund is to ensure the charity could meet its obligations for 6 months wind down costs and redundancy payments.
New clubs
This fund was set up to explore other opportunities to open additional after school clubs.
Emergency fund
This fund was set up to financially support struggling after school clubs under the control and management of Kent Play Clubs.
Subsidised places
This fund was set up to offer financial support to parents to enable struggling families to attend the after school clubs.
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Kent Play Clubs Notes to the Accounts for the year ended 31 January 2021
| 9 Analysis of net assets between funds Tangible fixed assets Cash at bank Other net current assets Tangible fixed assets Cash at bank Other net current assets |
General fund £ 2,239 31,340 4,966 38,545 General fund £ 1,626 73,121 1,622 76,369 |
Designated funds £ - 75,000 - 75,000 Designated funds £ - 45,000 - 45,000 |
2021 Total £ 2,239 106,340 4,966 113,545 2020 Total £ 1,626 118,121 1,622 121,369 |
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10 Related party transactions
The charitable company currently supports a network of 9 (2020: 9) after school clubs in rural and socially deprived communities surrounding Ashford and Shepway. During the year it received primary purpose contributions for this support totalling £46,497 (2020: £80,513). Kent Play Clubs also received income totalling £6,806, in respect of reimbursement of invoices raised to individual after school clubs relating to costs paid on their behalf and £817 in respect of re-charges of postage, photocopies, stationery and travel costs etc. Kent Play Clubs does not make a surplus on these.
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Kent Play Clubs Independent Examiner's Report to the Trustees for the year ended 31 January 2021
I report to the trustees on my examination of the accounts of Kent Play Clubs (the Charitable company) for the year ended 31 January 2021 which are set out on pages 6 to 12.
Responsibilities and basis of report
As the charity trustees of the Charitable 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 Charitable 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 all the applicable Directions given by the Charity Commissioner under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1) accounting records were not kept in respect of the Charitable company as required by section 386 of the 2006 Act; or
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2) the accounts do not accord with those accounting records; or
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3) 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.
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4) 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.
Daniel Valentine ACA
Begbies Old Printers House Stone Street Cranbrook Kent TN17 3HF