Company regislration no. 05277574 Registered Charity No: 1107547 HAPPY FACES PRE-SCHOOL LIMITED TRUSTEES. REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 HAPPY FACES PRE-SCHOOL LIMITED CONTENTS Legal and Administrative information Report of the Trustee5 Independent Examinerfs Report StateTnent of Flnancial Activities Balance Sheet Notes to the Flnanaal Statements 10-14 HAPPY FACES PRE-SCHOOL LIMITED LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 AUGUST 2023 Trustee5 and Director5 Emma Holt (Chairl Joanne Anderson lappointed 14 October 2022) Amber Danch Ire5igned 20 February 20231 Sam Haywood Sammy Manning {appointed 14 Ortober 2022, resigned 22 ptember 20231 Claire Smtth (appointed 14 October 2022} Jane Wooster Gemma Ha￿￿On lappointed 9June 20231 Sue Woodcraft (appointed l December 20231 Secretary Amber Danch (resigned 14 October 20221 Sammy Manning {appointed 14 October 2022, resigned 22 September 20231 Claire Smith {appointed 22 September 20231 Registered OFfice Hertordge Road Tonbridge Kent TN9 2DS Company Number 05277574 Charlty Reglstration Number 1107547 Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill Wèst Malling Kent ME19 4JQ Independènt Examiner ASHealey FCACTA DChA Lindeyer Francis Ferguson ￿Mited Chartered Ac(nuntants North House 198 High Street. Tonbridge. Kent TN9 18E Page 1 HAPPY FACES PRE-SCHOOL LIMITED TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST2023 The Trustees, (who are 3150 the d1￿CtOrS of the company for the purposes of the Companies Act) present their report and the financial statements of Happy Fa￿ Pre-school Limited for the year ended 31 August 2023. The Trustees confirTn that the report and financi31 statements of the charity comply wf(h the current ststutory requirements. the requirements of the compan(s governing document, and the provision5 of "Accounting and Reporting by Chartties- Statement of Recommended Prartice applicable to charities preparing their actounts in 3ccordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFR51021" leffecknve l J3nuary 20191 Icharities SORP IFRS 10211. The Legal and AdministratNe infoTmation on page I forms part of this reporL Strurture, Governance and Managemènt Companystatus Happy Faces Pre-school Limited ts a charttable company limited by guarantee and has no share capital. The liability of each member in the event of a wnding up is limited to £1. The company was incorporated on 4 November 2004 and is governed by a memorandum and articles of association. Governonce ond internolcontrol The Board of Trustees are responsible for selerting and recrutiing suitable trustees to office at any time during the course of the year. The board shall consist of a Chair, Treasurer. Secretary and not less than 2 or more than 9 other members. The Chair, Treasurer and Secretary hold office for a period of one year but can offer themselves for re-elertion. Up until December 2022 no board member could hold office for more than six yea￿. From 15 December 2022 committee member5 can serve for 15 years. Potential new trustees are invrted to attend board meetings to recetve an introduction to the charitvs activities, workings. finances and risk assessments. Current and potential trustees are also encouraged to attend courses on topical Subjects relating to directors. The board controls the activitie5 of the charity through regular meetings held throughout the year. Aims and obJectlve5 Aim5 The object of the charity is the provision of childcare facilities for children aged two to five year5 in the Tonbridge area. Happy Faces is a community pre-school with a wide soaal mix and aims to treat each child as an individual. The Pre-sch¢)of5 goal is to provide a happy and secure environment in which each child can reach their full potential. Happy Faces aims to do this through good quality care and education for voung children, in a safe yet stimulating environment. Children are given the f￿edoM to expertence a wide range of activities in a play-based curriculum. providing the best possible foundation for Primary School. Page 2 HAPPY FACES PRE-SCHOOL LIMITED TRUSTEE5' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST2023 In setting the objectives and planning the activibes of the Project the trustees have gNen careful consideration to the Chartty Commissionerfs general guidance on public benefit and in particular to supplementary public benefit guidance on adv3nLing education and on fee charging. Objertives The objertives are set to reflect the local community and educational aims as well as the ethos of the Pre-school. The high4evel objectives for the year induded- To offer appropriate play. education and care facilities for local pre-school aged children (two to five years of age): To encourage parents to understand and promde forthe needs of their children.. To be an inclusive organisation which welcomes families from different ethnic and cultural backgrounds and active￿ seeks to value and respect the éiversity of our multi cukural society. Happy Faces Pre-school seeks to benefftthe public through pursuit of its ststed aims. The Pre-school welinmÈs children from all backgrounds. Happy Fa￿S is legally obliged to tske funded children (those aged three to five years) as priorty. and then fills any remaining spaces on its roll with children aged from two to three years. Happy Faces is regISte￿d on the government scheme "Free for 2". which funds places for 2 year olds for up to 15 hours per week Ithis can be split between two childcare settings). The scheme is to provide good quality early Èducation for d[Sa￿ntaged children. aiming to improve their social and cognitive outcomes before they start school. Happy Faces has had 2 year olds on the roll during the year funded by this scheme. Happy F3cÈs al￿ accepts childrerh aged 3 and 4 who are eligible for the 30 hour5 Free Early Entitlement. Happy Faces has had 3 and 4 year olds on the roll during the year funded by this scheme. Regular contact is maint3inèd with p3rents and carers across thè year through infomial contatt and a monthly newsletter. Happy Faces staff work both independentty and closety with parents and carers to identify where there is a nèèd to engage with the full range of wider support sarvitès. including he31th visitors, paediatricians, child psychologists. portage. speech therapists. and the SpetialÉst Teaching SeNice. The Prfrschool sends children to a wide range of schools in the Tonbridge area. Review of activities and athievements The number of thildren aged two to fwÈ years on the roll xt Happy Faces xcross the year wa5- Term l & 2- September 2022- December 2022- 27 children:12021- 46) Tem) 3 & 4- january 2023- M3rch 2023- 33 childrèn-12022- 531 Term 5 & 6- April 2023- August 2023- 39 children12022- 56} Page 3 HAPPY FACES PRE-SCHOOL LIMITED TRU5TEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST2023 Happy Face5 15 well-known locally and many children come to the pre-school as a result of its positNe wor(Kof-mouth reputation. The Pre-sch(￿1 is listed by Kent County Council, the National Child Birth Trust INcn and the lool library. The Io(31 Primary School also sign-posts new parents with appropriately aged children to Happy Faces. In addrknon. children are referred to Happy Faces from Special Educational Needs Service and the lo(al children's centre. An average of 8 members of staff were eTfbployed at Happy Faces during the year. In addition, as part of Happy Face5, connertion with the local communtty. wotk experiente placements are offered to girls from North Kent College. Happy Faces is an equal opportunities organisation and is committed to a working environment that is free from any form of discrimin3tion on the ground5 of ￿lour, r3ce, ethnictty, religion. sex. sexual orientation or dis8bility. Reasonable adjustments will be Tnade to meet the needs of staff or children who are or who become disabled. All Staff are dedicated to continuous personal and professional development and the Pr￿school has an exceptiona51y high percentage of trained st3ff. Happy Faces follows the Early Years Foundation Stage Framework with support from a Kent County Council Setting Improvement Partner. Happy Fa￿S is part of a collaboration of eight Early Year settings in Tonbridge and the surrounding area. where we share ideas and funding to further improve our settings. Happy Faces seeks to be at the heart of the local communtty. holding Easter and Christmas rdffies and regular cake sales to welcome in and engage wtth members of the wider community, a5 well as parents and Ca￿rs. We are closely monitoring our funds to ensure we have enough in reserve should we have to make staff redundant andlor close the Pre-school. Flnancial Review Reserves Total income for the year was £111.547, compared to the previous yearfs income of £159,328. Costs were £140,112, compared with £162.729 in 2022. This resulted in a deficst on the general fund of £28.56512022= £3,401) for thè year and the balan￿ carried forward on the general fvnd at the year- end is £105.40112022= £133.9661. The general fund includes the leasehold premises of £37,839 and the balance of £67,562 is available to be spent at the Trustees, discretion in furtherance of the charivs objectives. The charity seeks to keep a balance in reserves equivalentto 3 month5 of expenditure. Happy Faces sets fees at a level to ensure the financial viabiltty of the Pre-school and in line with the early years funding prowded by Kent County Council. The Pre-school offer5 WTaP around care betwèèn the hour5 of 08.30 and 16.00, should parents and Ca￿rS wish to take advantage of this, thereby facilitating parents. ￿turn to work. Happy Faces offeTS payment plan5 and flexible methods of paymerht to all parents who may be experiencing dfficulty in meeting their fees obligation. The Happy Faw Board seeks to raise funds for the prtrsCh￿l throughout the year. Primarily this is done through three annual fundraising events= Easter. sumFner and Christmas raffles. Howevèr. the Page 4 HAPPY FACES PRE-SCHOOL LIMITED TRUSTEES, REPORT {continued) FOR THE YEAR ENDED31 AUGUST2023 Committèe also seeks to hold other smaller fundraising artivtties each temi. for example, a children's sponsored bounce. Plans forthe future Happy Faces will continue to seek to improve the quality of the care it provides. Staff will work to maintain their awareness of the latest developments in nursery and pre-school care and child development and will continue to assess well-being and involvement to ensure each child is actively developed and encouraged to meet tts full potential. The Committee will continuè to furtdraise in the coming year. both for Happy Fa￿S and for the wider community. The Commtttee will also strive to encourd#e more parents and c3ret5 tojoin its boo*. We lost 3 membeys of staff between January and May 2023 and replated one in January 2023. This mean5 that our highest expense has dètteased. We will continue to not employ any more staff unless we absolutely need to in order to meet our ratio ￿quIrements. Our part time staff are also willing to be flexible in adding extra sessions on a tèmporary basi& On this basis we hope to minimise the likelihood of further financi31 losses for the charity. Statement of Trurtees. Responsibilities The Trustees (who a￿ also directots of charttsble company for the purposes of company lawl are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Prattice. Company law requires the Trnstees to prepare financial statements for each financial year. Under that law the Truttees have elerted to prepare the financial statements in 3tt0rdance with the United Kingdom Generally Accepted Accounting Practice Iuntted Kingdom Attounting Standards and applicable lawl. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resourcès and applic3tÉon of resources, including the income and expenditure, of the charitsble company for that period. In preparing those financial statements. the Trustees are required to: select suitable accounting policies and then applythem consistently- observe the methods and prinaples in the Charities SORP: make judgements and estimate5 that are reasonable and prudent- state whether applicable UK Accounting Standards have been followed. subjert to any material departures disclosed and explained in the financial rtatements- prepare the financi31 statements on the going concern basis unless rt is inappropriate to presume that the charrtable company will continue in business. The Trustees aré responsible for keeping adequate accounting records that are sufficient to show and explain the charitable coMpan￿S transactions and disdose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Page 5 HAPPY FACES PRE-SCHOOL LIMITED TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 31 AUGUST2023 charitable company and hence for tsking reasonable step5 for the prevention and detection of fraud and other irregularities. The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime in Part 15 of the Companies Att 2CM)6. This repDrt was approved by the Trustees on.-ty.£l.i¥and signed OD their behalf by: Emma Holt Chair Page 6 **HAPPY FACES PRE-SCHOOL LIMITED** ## **INDEPENDENT EXAMINER’S REPORT** _**FOR THE YEAR ENDED 31 AUGUST 2023**_ I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 August 2023. ## **Responsibilities and basis of report** As the trustees of the company (and 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 the company’s accounts 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** 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 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; or 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. ………………………………………. **Amy Healey FCA CTA DChA Lindeyer Francis Ferguson Limited** Chartered Accountants North House 198 High Street Tonbridge Kent TN9 1BE Dated: 28 May 2024 Page 7 HAPPY FACES PRE-SCHOOL LIMITED STATEMENT OF FINANCIAL AcnvmES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST2023 2023 2023 Total 2022 Total fvnds fvnd5 Note Income from: Donations and Erants Charitable artivities Fees and Local Authority funding Other trading actNities Fundraising events Investments Bank interest receivablè 950 950 4,606 109.776 109.776 154,163 254 254 501 567 567 58 111.547 111.547 159.328 Expenditure on: Charitable artwities 140,112 140,112 162,729 Net expenditure and net movement in funds 128.5651 128,5651 13,4011 Recon¢iliation of funds Totsl funds brought forward 133.966 133.966 137,367 Total funds carried forward 105.401 105,401 133,966 Page 8 HAPPY FACES PRE-SCHOOL LIMITED BALANCE SHEET ASAT31 AUGUST2023 21ll3 2022 Note Fixed assets: Tangible assets 37.839 49.761 Current assets: Debtors Cash at bank and in hand 2.593 66,843 775 85,693 69.436 86.468 Credttors: amounts falling due within one year { 1.874) { 2.2631 Net current assets 67.562 84,205 Totsl net assets 105,401 133,966 The funds of the charity- Unrestrirted funds-. General Fund 105.401 133.966 105,401 133,966 For the year in question. the charttable company was entitled to exemption from an audit tjnder section 477 of the Companies Act 2006 and the members have not required the charttable company to obtain an audit of it5 accounts for the year in question in accordance with section 476 of the Act. The Executive Committee acknowledge thelr responsibilities for complying with the requirements of the Companies Act 2006 with rÈspÉct to attounting records and the preparation of accounts. The finan¢i81 st3tÈments have been prepared in accordance wtth the provisions applicable to small companie5 Within Part 15 ofthe Companies Act 21x16. The financial statements were approved by the Executive Commtttee on ...................and signed on their behalf by.. Emma Holt Director and Chair Company reglstration no: 05277574 Page 9 HAPPY FACES PRE-SCHOOL LIMITED NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 AUGUST2023 Accounting p)Ilcles 1.1 Basis of prepar*70n The financial statements have been prepared under the historical cost conventlDn and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 leffectNe l January 20191 {°Charities SORP FRS 102,1, the Financial Reporting Standard applicable in the UK and Republic of Ireland I"FFiS 102"} and the Charities Act 2011. The charity constitutes a public beneftt entity as defined by FRS 102. The attounts are presented in pound5 Sterling and rounded to the nearest pound. The charity reported a deficit of £28.565 for the year ended 31 August 2023. The Charity is currently operdting under government funding which is not Èxpertèd to cease. However, due to the increase in the National Living Wage and utilities and other costs continuing to rise and no signrficant rise in government fundin& it is proving diffitult to break even. Income and expenditure are therefore being monitored c105ety- Due to the current level of reseTve5 and the continuation of funding from the government the trustee5 expect the charity to continue to operatè and therefore the going concern basis of accountin8 has continued to be adopted. There are no signtficant areas of judgement or estimation uncertainty. 1.2 Income Income frorn donations and grants is recogni5ed when the charity És entitled to the funds, the receipt is probable and the amount can be measured reliably. For donations this is usually on receipt- For grants. this is usually when a fomal offer is made in writin& unless the grant contalns terms and eondttions outside of the charity's contro5 which must be met before the charity is entitled to the funds. Income in relation to fees and Local Authortty fvnding is recognised in the peNod in which the place5 for whith the fees are charged or the funding is received ale attended by the children. Income from milk refunds are recognised when the goods are consumed. Income from fundraising events is recognised when the event takes place. 1.3 Expènditure Liabiltiies are recognised a5 expenditure as soon as there is a legal or constructive obligation committing the ch3rity to that èxpendtture, it is probable that settlement will be required and the amount required to settle the obligation can be measured reliably. Page 10 HAPPY FACES PRE-SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2023 Accounting polioes {continued) 1.3 Eynditure (continued) All expenditure is accounted for on an accruals basis. Irrecoverable VAT is included. Expenditure is classified under headings that aggregate all costs related to that category. Support and govemance costs havè beÈn 311ocated to the charity's one charitable activity. 1.4 Tangible Fixed assets All expenditure on fixed assets is capitalised at cost. Tan&Tble fixed assets are stated at C05t less depreciation, which 15 provided at rates calculated to wrtte off each asset over tts expetted useful life, with leasehold premises depreciated on a straI￿t line basis over the period of the 25 year lease. In 2018 the uscful lives were rèvised so that the net book value of leasehold prerni5es is depreciated over the remaining lease period to 2026. 1.5 Nnanclal instruments The charity only has financial instruments which are dassified as basic financial instruments. Short- tern) debtors and creditors are measured at the settlement Yalue. Any losses from impaimient are recognised in the Statement of Financial Artivities. 1.6 Fund a¢countin8 General funds are unrestrirted funds which are available for use at the discretion of the trustees in furtherance of the generdl objectives of the Charity and which have not been designated for other purposes. 1.7 Status The Happy Faces Pre-school Limtted is 3 charitable company, limited by guarantee, registered with the Charity Commission in England and Wales. Its registered address is Hectorage Road, Tonbridge, Kent. TN9 2DS. In the event of the wmpany being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity- Page 11 HAPPY FACES PRE-SCHOOL LIMrfED NOTES TO THE FINANCIAL sfATEMENTS FOR THE YEAR ENDED 31 AUGUST2023 Expenditure on chaTitsble attivitses 2023 2022 Staff costs - (see note 31 Materials/replacement toys Children's food and milk Premise costs (including repairs} Depreciation 97,616 1,882 109,655 1,583 764 16,485 11,922 13,794 11,922 Staff costs- Isee note 31 Insurance PrintinL postage and stationery Other costs 6.113 1.261 853 4.887 11,099 1,964 360 7,757 60￿M0￿Ce. Independent examination 1.296 1.140 140,112 162,729 Staff Costs and remuneration of key managemert personnel 2023 2022 Wages and salaries- 3dministeringthe charity Wages and salaries- nursery staff Employer's National Insurance Employers PeNsion cost 6.113 95,727 746 1,143 11,099 105,985 2,139 1,531 103,729 120,754 The ?verage number of employees on a headcount bast5 was 8 12022- 8}. No employee retelved employee benefrts in excess of £60.(XK)12022= Nill. The key management personnel are considered to be the trustees and the pre-school manager. RemLJneration of key managèment ￿rsonnel including employers, national insurance and pension contributions, was £23,67812022: £25.670). DuFing the year. no trustees received any remuneration or benefits norwere reimbursed for any expenses in their capacity as trustees12022: Nil}- Page 12 HAPPY FACES PRE-SCHOOL LIMITED NOTES TO THE FINANCIAL sTATEME￿rs FOR THE YEAR ENDED 31 AUGUST2023 Tangible Fixed assets Leasehold premises Cost at I September 2022 and 31 August 2023 213,378 Depreaation At I September 2022 Depreciation charge 163.617 11.922 At 31 August 2023 175,539 Net book value At 31 August 2023 37,839 At 31 Augiist 2022 49,761 Debtors 2023 2022 Prepayments Other debtors 2,226 367 775 2,593 775 Creditors: amounts falling due within one year 202Z Accruals and deferred income Taxation and social security 1.200 674 1.318 945 1.874 2,263 Page 13 HAPPY FACES PRE-SCHOOL UMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 MOVEMENT ON FUNDS CunEnt Yecr Brought Aorward Carried fvrword Income Expenditure Unrestrlcted funds General funds 133.966 111.547 1140.1121 105,401 Prioryear Brought fonvortl Ctsmed forward Income Expenditure UnrÈstrictad funds General funds 137,367 155,401 1158,8021 133,966 Restrlcted funds COMF Grant 3.927 13,9271 137.367 3,927 1162,7291 133,966 RÈstrirted funds in the previous year were received ftjr Contain Outbreak Management Funding requested from Kent County Council. Funding was requested for additional staffing and resources to enable them to stay open for as many children as possible. This was fully spent last year. Lease commitments The ch3rtty has 2 lease for land with TonbrÉdge and Malling Borough Council which expire5 on 14 December 2026. A rent of £600 per annum is currently pay3ble. subject to 5 yearly revlews. Related partytransactions During the year Mr rim Fuller, husband of the prtrKhool manager, was paid £83612022.. £7,0521 for gardening and general rna1ntenan￿ work t3rriÈd out in the year. During the year two close family members of Amber Danch, trustee during the year. were employed by the charity. Aggregate remuneration was £44.41312022= £42,155). There were no other related party transactions. Page 14