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← North Tynies Childcare Ltd

2024-03-31-accounts

Company registration number: 05392562 Charity registration number: 1110941

North Tynies Childcare Limited

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 March 2024

North Tynies Childcare Limited

Contents

Reference and Administrative Details 1
Strategic Report 2 to 3
Trustees' Report 4
Statement of Trustees' Responsibilities 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8 to 9
Notes to the Financial Statements 10 to 17

North Tynies Childcare Limited

Reference and Administrative Details Reference and Administrative Details
Trustees S J Barnes
A Taylor
R C Moore
P Troop
Secretary C Hopkins
Charity Registration Number 1110941
Company Registration Number 05392562
The charity is incorporated in England and Wales.
Principal Office Bellingham Schools Site
Redesmouth Road
Bellingham
Hexham
Northumberland
NE48 2EN
Independent Examiner TyneRede Accountancy Ltd
Lloyds Bank House
Bellingham
Hexham
Northumberland
NE48 2AZ
Bankers Unity Trust Bank
Nine Brindley Place
4 Oozells Square
Birmingham
B1 2HB

Page 1

North Tynies Childcare Limited

Strategic Report for the Year Ended 31 March 2024

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 March 2024, in compliance with s414C of the Companies Act 2006.

Achievements and performance

North Tynies are pleased with financial activities for the year ending 31.03.2024

North Tynies income is slightly higher than the previous year. In order to reduce the effect of the cost of living increases to offset the detrimental impact on the business the Committee took the difficult decision to revise our fees. Prices were raised by £1.00 per hour for children under five years and meal charges have increased. Although this may be considered a large jump it is important to note that no changes had been implemented since April 2019, as the committee are very aware of the other financial problems faced in this very rural community. Another significant factor leading to this action is the Government early years hourly funding rates have been insufficient and have not risen in line with annual GDP rates and therefore in relative terms are worth less in value than those in 2010, so as a business more is expected by the government than the funding allows.

It is widely acknowledged that recruitment and retention is difficult, this is further exacerbated by our rural situation and lack of adequate public transport links and the raising of the education leaving age to eighteen, so we do not have access to young apprenticeships. Our rural location and the fact that it is a low paid occupation, contribute to the lack of appeal to prospective applicants. The impact of this is we have found it necessary to adopt a waiting list procedure for prospective families as we are unwilling to compromise high quality delivery and the well-being of our staff

The Government’s intended roll-out of free childcare hours is a most welcome incentive for working families and we are planning ahead re staffing to accommodate the extra demand, always considering the safety and education within legal adult/children ratios, and the ability to maintain a quality provision and retain excellent early years practitioners. Locally permission to build new dwellings has been granted which we hope will attract families that will benefit from North Tynies Childcare in the future.

Expenditure

We support the government’s decision to an above inflation rise to the minimum hourly pay but this does present more payroll costs to a small business, along with increases on all purchases associated with service delivery, has meant North Tynies has been very frugal while maintaining standards and quality, meaning we have to postpone capital expenditure.

It is imperative in the coming year that funding is sourced for vital repairs to the building for the successful continuing viability and sustainability of the business. North Tynies is an essential and integral part of our community

We will continue to collect outstanding monies to reduce the debtors, using external agencies where necessary, which in the past have proved effective, we do believe these monies to be recoverable even if it is over a longer period.

Page 2

North Tynies Childcare Limited

Strategic Report for the Year Ended 31 March 2024

Financial review

Policy on reserves

Reserves are required to bridge the gap between spending and income to carry out emergency repairs and other expenditure. Upon the inception of North Tynies Childcare Ltd ‘grants in advance’ were awarded to address future shortfalls due to the unpredictable nature of the business. The reserves have been instrumental in the continuation of North Tynies Childcare Ltd thus providing financial stability to sustain the high-quality delivery of services despite the current economic backdrop and our reliance on local demographics. We continue to apply for grants to enable continuing repairs and renewals from local and national sources.

Investment policy and objectives

Under the memorandum and articles of association, the charity has the power to make any investments which trustees see fit.

The strategic report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... S J Barnes Trustee

Page 3

North Tynies Childcare Limited

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2024.

Objectives and activities

Objects and aims

The objects of the Charity are:

a) To advance the education of the children and in particular those children below compulsory school age. b) By the promotion and provision of day care facilities for such children which stimulate their growth and development through play.

c) To advance the education and development of children from primarily within the North Tyne and Redesdale area, in particular by the provision of a comprehensive childcare service offering facilities for safe and satisfying play and to provide or to arrange for the provision of such ancillary facilities and activities as are considered necessary or desirable for the fulfilment of the objects.

Structure, governance and management

Nature of governing document

The organisation is a charitable company limited by guarantee, incorporated on 15 March 2005 and registered as a charity on 15 March 2005. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under it’s Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and appointment of trustees

The Trustees of North Tynies Childcare Ltd make up the Voluntary Management Committee. The committee comprises of school teachers, staff and children’s parents/carers.

North Tynies Childcare Ltd may by ordinary resolution appoint a person who is willing to act to be a Trustee.

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... S J Barnes Trustee

Page 4

North Tynies Childcare Limited

Statement of Trustees' Responsibilities

The trustees (who are also the directors of North Tynies Childcare Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. 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 its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... S J Barnes Trustee

Page 5

North Tynies Childcare Limited

Independent Examiner's Report to the trustees of North Tynies Childcare Limited ("the Company")

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2024.

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 North Tynies Childcare Limited 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 the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of FCCA, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of North Tynies Childcare Limited 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.

...................................... Christopher Gillie FCCA

Lloyds Bank House Bellingham Hexham Northumberland NE48 2AZ

Date:.............................

Page 6

North Tynies Childcare Limited

Statement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Other trading activities
4
Investment income
5
Total Income
Expenditure on:
Raising funds
6
Total Expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16
Note
Income and Endowments from:
Other trading activities
4
Investment income
5
Total Income
Expenditure on:
Raising funds
6
Total Expenditure
Net expenditure
Transfers between funds
Reconciliation of funds
Total funds carried forward
16		 Unrestricted
£
4,428
251,921
2,552
258,901
(254,771)
(254,771)
4,130
4,130
(4,130)
-
Unrestricted
£
207,658
1,046
208,704
(219,017)
(219,017)
(10,313)
6,183
(4,130)		 Total
2024
£
4,428
251,921
2,552
258,901
(254,771)
(254,771)
4,130
4,130
(4,130)
-
Total
2023
£
207,658
1,046
208,704
(219,017)
(219,017)
(10,313)
6,183
(4,130)

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 16.

The notes on pages 10 to 17 form an integral part of these financial statements. Page 7

North Tynies Childcare Limited

(Registration number: 05392562) Balance Sheet as at 31 March 2024

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
12
Creditors: Amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
14
Net liabilities
Funds of the charity:
Unrestricted income funds
Unrestricted
Total funds
16		 2024
£
4,408
31,806
102,994
134,800
(5,024)
129,776
134,184
(134,184)
-
-
-		 2023
£
5,087
29,619
123,133
152,752
(5,196)
147,556
152,643
(156,773)
(4,130)
(4,130)
(4,130)

For the financial year ending 31 March 2024 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

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

The notes on pages 10 to 17 form an integral part of these financial statements. Page 8

North Tynies Childcare Limited

(Registration number: 05392562) Balance Sheet as at 31 March 2024

The financial statements on pages 7 to 17 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... S J Barnes Trustee

......................................... C Hopkins Secretary

The notes on pages 10 to 17 form an integral part of these financial statements. Page 9

North Tynies Childcare Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

1 Charity status

The charity is limited by share capital, incorporated in England and Wales.

The address of its registered office is: Bellingham Schools Site Redesmouth Road Bellingham Hexham Northumberland NE48 2EN

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements 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 in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

North Tynies Childcare Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Income and endowments

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

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Page 10

North Tynies Childcare Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Taxation

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

Tangible fixed assets

Individual fixed assets costing £100.00 or more are initially recorded at cost.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Office equipment 15% reducing balance
Leasehold improvements 10% reducing balance
Externals 15% reducing balance

Page 11

North Tynies Childcare Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Page 12

North Tynies Childcare Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

3 Income from donations and legacies

Grants, including capital grants;
Grants		 Unrestricted
General
£
4,428
4,428		 Total
2024
£
4,428
4,428

4 Income from other trading activities

Trading income;
Childcare fees
2 3 4 funding
Subsidies and miscellaneous income		 Unrestricted
General
£
141,642
108,541
1,738
251,921		 Total
2024
£
141,642
108,541
1,738
251,921		 Total
2023
£
108,050
97,605
2,003
207,658

Page 13

North Tynies Childcare Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

5 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits
6
Expenditure on raising funds		 Unrestricted
funds
General
£
2,552		 Total
2024
£
2,552		 Total
2023
£
1,046

a) Costs of trading activities

Note
Subcontract cost
Accountancy fees
Staff costs
Staff NIC (Employers)
Staff pensions (Defined contribution) - pension
scheme
Training costs
Light, heat and water
General insurance
Repairs and renewals
Office costs
Equipment and consumables
Catering
Sundry expenses
Cleaning
Motor expenses
Legal and professional fees
Bank charges
Depreciation of fixtures and fittings
Depreciation of leasehold property
improvements		 Unrestricted
General
£
331
1,215
205,016
9,909
3,720
220
5,506
417
6,235
7,025
1,264
6,057
1,269
2,430
919
2,307
252
508
171
254,771		 Total
2024
£
331
1,215
205,016
9,909
3,720
220
5,506
417
6,235
7,025
1,264
6,057
1,269
2,430
919
2,307
252
508
171
254,771		 Total
2023
£
5,614
1,140
169,600
7,966
2,849
220
3,958
-
5,124
6,901
1,185
6,877
1,069
2,214
991
2,270
251
598
190
219,017

Page 14

North Tynies Childcare Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

7 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

8 Staff costs

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

charity during the year expressed as full time equivalents was as follows:
Childcare Workers
Administration and Support		 2024
No
10
2
12		 2023
No
10
2
12

10 (2023 - 8) of the above employees participated in the Defined Contribution Pension Schemes.

Contributions to the employee pension schemes for the year totalled £3,720 (2023 - £2,849).

No employee received emoluments of more than £60,000 during the year.

9 Taxation

The charity is a registered charity and is therefore exempt from taxation.

Page 15

North Tynies Childcare Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

10 Tangible fixed assets

Cost
At 1 April 2023
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
11 Debtors
Trade debtors
Prepayments
Other debtors
12 Cash and cash equivalents
Cash on hand
Cash at bank
13 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals		 Externals and
office
equipment
£
12,297		 Leasehold
improvements
£
9,195		 Total
£
21,492
21,492
16,405
679
17,084
4,408
5,087
2023
£
28,283
1,336
-
12,297 9,195
8,907
508		 7,498
171
9,415 7,669
2,882 1,526
3,390 1,697
2024
£
30,014
1,791
1
31,806
2024
£
198
102,796
102,994
2024
£
2,592
-
1,231
1,201
5,024
29,619
2023
£
50
123,083
123,133
2023
£
-
3,310
731
1,155
5,196

Page 16

North Tynies Childcare Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

14 Creditors: amounts falling due after one year

14 Creditors: amounts falling due after one year
Deferred income
15 Pension and other schemes
Defined contribution pension scheme		 2024
£
134,184		 2023
£
156,773

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £2,313 (2023 - £2,159).

16 Funds

Unrestricted
General		 Incoming
resources
£
258,901		 Resources
expended
£
(258,901)		 Balance at 31
March 2024
£
-

Page 17