**FIVE CHILDREN AND FAMILIES TRUST LTD (A COMPANY LIMITED BY GUARANTEE)**
## **ANNUAL REPORT AND ACCOUNTS**
**for the year ended**
**31st March 2023**
**REGISTERED NUMBER: 4241965 CHARITY NUMBER: 1112796**
**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Accounts**
|**Contents**|**Page**|
|---|---|
|Company Information|1|
|Report of the Trustees|2|
|Auditor’s Report|13|
|Statement of Financial Activities (including Income and Expenditure Account)|18|
|Comparative Statement of Financial Activities (including Income and Expenditure Account)|19|
|Balance Sheet|20|
|Statement of Cash Flows|21|
|Notes to the Accounts|22|
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Company Information 31st March 2023**
|**Company number:**|4241965|
|---|---|
|**Charity number:**|1112796|
|**Trustees:**|P R Bostock (Chair)|
||B Prescott (resigned 7 June 2022)|
||P M Freeman|
||M Ord|
||A Hughes|
|**Secretary:**|S Roberts|
|**Chief Executive:**|S Roberts|
|**Registered office:**|Conleach Road|
||Speke|
||Liverpool|
||L24 0TW|
|**Bankers:**|Co-operative Bank plc|
||Po Box 250|
||Delf House|
||Southway|
||Skelmersdale|
||WN8 6WT|
|**Solicitors:**|Hill Dickinson LLP|
||No.1 St. Paul's Square|
||Liverpool|
||L3 9SJ|
|**Auditor:**|Mitchell Charlesworth (Audit) Limited|
||Accountants|
||Statutory Auditor|
||5 Temple Square|
||Temple Street|
||Liverpool|
||L2 5RH|
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023**
The trustees (who are also the directors of the company for the purposes of company law) present their report together with the audited accounts of the charity for the year ended 31st March 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Companies Act 2006 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 (FRS102) (effective 1 January 2019).
## **Trustees**
The trustees who served during the year are detailed on page 1.
B Prescott resigned on 7 June 2022.
A Hughes retires by rotation and being eligible, offers herself for re-election.
## **Objects and activities**
The objects of the charity are to:
- Promote the physical, intellectual and social development and education of pre-school and young children particularly those who are disadvantaged or who have special needs and to ensure that they are ready to flourish when they get to school by working with families, foster and surrogate families and caring for and nurturing children.
- Advance the education of the public in all aspects of the development of young children including speech and language.
- Relieve poverty, sickness and distress among those in necessitous circumstances.
- Relieve unemployment in such ways as may be thought fit including assistance to find employment, and
- Carry out such other exclusively charitable purposes as may be conveniently or advantageously carried out in conjunction with the primary objects.
The charity has the general aim of working in partnership to deliver better outcomes for children and families.
The main objectives for the year continue to be the delivery of our children centre contract, particularly focusing on enhanced family support through our parent mentor project, improving access to employment and the promotion of healthy lifestyles, in particular focusing on mental wellbeing and diet and nutrition.
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023 (continued)**
## **Strategic Report**
## **Achievements and performance**
## **Children Centre Activities**
## **Our Focus on Poverty**
Speke Garston now ranks 10[th] in terms of the percentage of children living in poverty from a ranking of 13[th] , however we continue to rank 3[rd] in respect of the volume of children who live in poverty.
We know that the concentration of poverty within the Speke district is higher and that families with a child aged under 5 are at an increased of poverty. Data sets have changed but previous analysis indicates that poverty can be as high as 80% within this cohort. In our nursery 39% of our 3- and 4-year-old children are in receipt of pupil premium.
33% of our total cohort are in receipt of 2-year funding. These places are allocated to families who are on very low incomes. Specifically, within the total two-year cohort the free places made up 74% of our allocations indicating very high levels of poverty in the early years.
In this financial year we:
- Worked directly with 1,435 individuals requiring support with poverty, this is significantly higher than any other year.
- This work included distribution of food and fuel vouchers, employability support and referrals to partners for debt advice.
- Providing food at our activities.
- In addition, we distributed £100K of Asda Vouchers across Liverpool Children Centres.
- Support to access grants, Disability Living Allowance and childcare funding.
Across our children centres, we worked with 3,253 families including 1,157 children aged under 5 years old with 13,944 individual client contacts. Client contacts were decreased as we no longer record childcare contacts on our Estart database, however we delivered 110,580 free childcare hours across the year. In the context of poverty, 60% of all children seen, live in the 1-5% most deprived communities.
Overall, the children centre activities included the following contacts:
- 743 contacts to support healthy weight including a new Infant Feeding service delivered by Alder Hey.
- 1707 individual face to face contacts were made for Family support.
- 191 contacts were specific to a child with special educational needs and or disability.
- 70 children accessed Early Communication Groups, most of these children were referred to Speech and Language Therapy.
- We saw a significant increase in take up of Active Play sessions with 590 contacts recorded.
- We delivered 4,220 hour of community learning courses included Women’s Empowerment, The Nurturing programme, You and Me Mum, Bump Birth and Beyond, Baby Massage and Early Communication Groups.
- 727 individuals accessed universal early learning groups.
- Liverpool Women’s Hospital Trust recorded 2,864 client contacts and 450 New Born Hearing screenings.
- 746 clients accessed Christmas activities which included our Grotto, Elf events and Christmas parties.
- • The total contacts throughout the year specific to poverty support was 3,453.
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023 (continued)**
## **Achievements and performance (continued)**
## **Children Centre Activities (continued)**
Partnership working was reinstated, and some new partnerships brokered to support our delivery, this included working with:
- Life Room
- Crosby Training
- Citizen’s Advice Liverpool Perinatal Mental Health Service
- Alder Hey Infant Feeding Service
- Shelter
- Kinship Carers Liverpool
All partners add value to our work in the community, we are committed to working in partnership and always seek to innovate in our community.
We continue to act as the lead organisation for Youth and Play locally and provided support and advice on a range of matters such as HR, Fundraising, Safeguarding etc. FCFT has supported Garston Adventure Playground with a successful Youth Investment Fund application. The Venny has been awarded £1.4million to extend and modernise its building, improve the grounds and develop organisational capacity.
Whilst data and reporting relate to the 2022-2023 Financial Year, we are delighted to note that Five Children and Families Trust has been selected as the second Family Hub in Liverpool. This is a testament to our work in the community and the strength of our partnerships. Crucially it provides for longer term sustainability as we approach our 20[th] Year of Children Centre delivery in the community.
Our New Futures Group continue to support us in our work and in addition both Children Centres now have active parent groups who provide informal support and signposting, support with events and activities and broker in specific training that is wanted and needed by parents.
New Futures ran a very successful grandparents cream tea event where they asked the community to nominate grandparents who have made a difference to their community. The event was attended by Pat Fagan who worked tirelessly to support Marie Curie she also gave much of her time to support our Children Centres. Sadly, Pat has passed away and we were privileged to have been able to honour her work and commitment to her community.
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023 (continued)**
## **Achievements and performance (continued)**
## **Five Childcare**
Our childcare team has worked tirelessly to support access to provision in the community. Both settings have expanded their provision after a difficult year post Covid which saw the temporary closure of Muddy Footprints Garston.
They fully integrate with the work of our children centre and add value to all aspects of our delivery, in particular SEND, parenting, safeguarding and poverty work.
As indicated above they have delivered 110,580 free childcare hours across the year.
Both settings actively participated in our 12 Days of Christmas in addition to their own programme of events for children and families.
27% of children on roll have an identified special educational need, requiring intervention; 21% of these children are in receipt of Higher Needs Funding which means they have complex needs and often require one to one intervention.
These children all make progress in our settings and their SENCO and key person work hard to ensure the receive interventions that support progress and ensure that EHCPs are in place when they transition to school.
Senior managers ensure that their teams fully embed our bespoke curriculum, and it is evident that all our children make progress.
Our work in the early years focuses on narrowing the educational gap and we ensure that a full transition takes place when children start school with accurate baselines and evidence of progress.
Multi-agency partnership underpins this work and the manager for Muddy Footprints Early Years Centre chairs the Early Years Consortia, which considers representation from settings in relation to support for SEND children and she is also the representative for South Liverpool Private and Voluntary Sector Nurseries.
Our settings have participated in national and citywide programmes of work to enhance support for children to develop speech, language and communication skills as many as 58% of our children have mild to moderate delay in speech and language at their 2-year Base Line assessment.
The settings have also run Nurture Programme out of hours to support those parents who are working; our childcare teams are integral to meeting the rigorous targets we are set by our funders.
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023 (continued)**
## **Achievements and performance (continued)**
## **Public Benefit Statement**
The Children Centre contract has a 100% focus on public benefit for children and families in Speke Garston and Cressington wards.
We support working parents with advice and guidance, ensuring maximum take up of childcare tax credits reducing fees by as much as 80% for the majority of parents and currently our ratio of free childcare provision stands at 60% compared to 40% fee paying.
FCFT always ensures that fees are kept as low as possible without compromising our business sustainability.
We maintained and built on our links with local businesses who support our Food Poverty Work and would like to thank:
AstraZeneca, Fords, Nandos, Moreton’s Dairy and Bid Foods all of whom have supported us to ensure families can have access to food and resources throughout the year and in particular over holiday periods.
Through our Children Centre work we also support families to access Liverpool Citizen’s Support Scheme (White Goods), Channel J (Furniture and equipment) and the Family Fund (Holidays). Our SEND Link workers also assist with the preparation of Disability Living Allowance applications and appeals on behalf of children with Special Educational Needs and Disability (SEND). We actively advocate on behalf of SEND children in terms of ensuring they are able to access support through the early years consortia and ensure Education and Health Care Plans are in place prior to them starting school.
We continue to provide training and consultancy to other local community organisations and groups on policy development, HR matters, funding and Safeguarding Children.
## **Risk management**
The risk assessment register has been updated including any risks associated with new proposals. A summary of key risks is set out below whilst the likelihood of Covid 19 continuing to have the level of impact at the height of the pandemic the Board feels that it is important to include the risk of a significant outbreak of this or any other emergent viruses not withstanding coronavirus mutations and or potential new contagion:
Significant Viral Contagion - risk to employees:
- Full and immediate individual risk assessment of all staff, in particular those considered as vulnerable to viral infection.
- Board and SMT commitment to maintain 100% of salary payments providing this does not pose a wider financial business risk.
- Work at home and in work protocols in place.
- • Risk assessments agreed based on Department for Education and Local Authority guidelines.
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023 (continued)**
## **Risk management (continued)**
Significant Viral Contagion - financial Impact:
- Government committed to maintaining early years funding.
- Funding for all children centre posts maintained through Local Authority.
- Review any Government support available.
- Deployment of staff to ensure all aspects of the business function.
Significant Viral Contagion - community impact:
- Children centre and childcare staff identified as “Critical Workers” all settings to remain open to the public.
- All children unable to attend childcare provided with regular key person contact and home working packs.
- • Working practices have been updated to ensure regular contact through new mediums this includes, delivery of Zoom Sessions, regular welfare calls, provision of food and vouchers, 1:1 contact, delivery of activity packs, maintenance of antenatal services.
- Strong community links established ensure the centre can operate for wider community benefit.
- Regular review of all risk assessments to ensure staff and community safety at all times.
Loss of revenues:
- Ongoing joint working across Liverpool Children Centre Network to support joint income generation.
- New tenancies have been maintained.
- Review of childcare waiting lists and allocations process.
- Review of nursery group structure and staffing.
- Regular meetings of SMT to ensure places are maximised across the group network.
- Work to support Garston Adventure Playground will result in rental revenues for Muddy Footprints.
- Current plans are in place to create Family Hubs providing longer term security for Children centres and potential for increased revenues and wide community benefit.
Increase in competition base for childcare:
- All settings are graded good settings by Ofsted.
- Childcare participate in achievement of externally verified quality assurance schemes
- Ambitious targets negotiated to ensure we achieve good outcomes for children.
- Ability to respond effectively and flexibly to 30 hours free funding for working parents.
## Changes to Children Centre’s and Childcare Inspection Frameworks:
- Centre works closely with Local Authority Quality Improvement Officers and Children Centre Central Service Team.
- Staff qualifications include Qualified Teacher Status, Early Years Practitioner and a high number of graduate qualifications across the organisation.
- SMT participate in a number of peer support networks to explore best practice approaches.
- All existing policy, procedure, practice and information systems have been reviewed in line with proposed changes.
- Board and SMT have revised curriculum intent which is consistent with our community aspiration and context
- SMT and whole staff supervision and appraisal is in place.
- All nursery settings have been inspected under the new framework and have been graded Good.
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023 (continued)**
## **Risk management (continued)**
Lack of opportunity to build up adequate reserves in line with the organisations reserves policy:
- LCC will underwrite any potential redundancy of core children centre staff.
- Nursery recovery plan demonstrated increased income.
- Terms and conditions have been reviewed in year.
- Government has introduced a Flexible Support Fund enabling parents to pay upfront childcare costs.
Potential significant maintenance requirements arise in relation to the Children Centre Asset:
- Centre implements a regular maintenance programme.
- Ability to draw down some capital budget through LCC.
- Reviewed tenancy agreements.
- SLH are amenable to discussion in relation to asset transfer in 2024.
Failure to adequately safeguard children:
- Maintain robust policy implementation.
- Regular review of safeguarding policy and practice through case management systems and audit arrangements.
- Completion of childcare safeguarding audits on all sites.
- Participation in multi –agency networks.
- Participation in Liverpool Safeguarding Partnership training programme and policy update service.
- Raising community awareness regarding keeping children safe.
- Staff, volunteers and board receive appropriate safeguarding training.
- SMT representatives support Liverpool Safeguarding Children’s Board with dissemination of training.
Loss of key staff and pressures arising on the SMT
- Focus on team development.
- Identified staff undertaking graduate qualifications.
- Succession planning in place.
## **Financial review**
The accounts show a decrease in income of £90,865 to £1,519,671 (2022 £1,610,536).
The trustees report a deficit of £36,549 (2022 surplus £66,684). This represents a deficit of £148,624 (2022 surplus £167,608) on restricted funds and a surplus of £112,075 (2022 deficit £100,924) on unrestricted funds.
## **Investments powers and policy**
Under the Memorandum and Articles of Association, the charity has the power to invest in any way the trustees wish.
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees**
## **for the year ended 31st March 2023 (continued)**
## **Policy on remuneration of key management personnel**
The charity is committed to ensuring that we pay our staff fairly and in a way which ensures we attract and retain the right skills to have the greatest impact in delivering our charitable objectives.
The Board undertakes an annual review of salaries with the CEO in attendance, although the CEO does not participate in the discussions around their own salary. All salary reviews take account of the broader financial position of the organisation.
When carrying out its reviews, the Board has regard to:
- Industry benchmarks, including the pay grades of similar roles within the local authority, where services are commissioned by those bodies;
- making sure that pay rates are competitive within the sector;
- the remuneration package as a whole including pension contributions; and
- rewarding good performance **.**
## **Reserves policy**
The charity’s reserves policy is to build up an unrestricted reserve sufficient to enable the charity’s activities to be continued for a period of 3 months should regular funding be reduced or become unobtainable.
This would provide the trustees with sufficient time to consider how the operations of the charity could be developed to enable its services to continue to be provided given the levels of funding available.
At present this level of reserves is realistically unobtainable but the trustees are looking at ways of increasing its incoming resources that would enable unrestricted reserves to be built up over a period of time.
Our business strategy is focused on the creation of a mixed economy that is:
- Less reliant on grant or a single source of income
- Builds on our existing enterprise portfolio and the creation of unrestricted reserves
- Ensures that all projects are based on the principles of full cost recovery
The build-up of a financial reserve is clearly linked to organisational performance and is wholly dependent on the organisation’s ability to respond, develop and innovate within the context of our enterprise work.
This is consistent with our business mission:
“We will grow our services, innovatively, profitably and in accordance with our charitable mission.”
In building sufficient reserves, we will be able to respond to potential risks and contingencies that may arise from time to time enabling us to meet financial risks associated with any contingency or uncertainty relating to the charity’s operating activities. These include:
- The provision for an orderly winding-down of operations in the event of a significant adverse event that is outside the control of the charity.
- Shifts in legislation that may affect existing services provided for by the charity.
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023 (continued)**
## **Structure, governance and management**
## **Post balance sheet events**
There are no significant post balance sheet events to report.
## **Governing document**
The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 27th June 2001 as amended on 2nd March 2006 to allow for current governance arrangements.
The company was registered as a charity on 23rd January 2006.
Membership of the charity is open to individuals or organisations who qualify in accordance with the policy and criteria for admission of members made by the trustees.
## **Organisation**
The board of trustees, which can have up to 9 members, administers the charity. The board meets at least four times a year and there are sub-committees covering finance, nominations and human resources.
A Chief Executive is appointed by the trustees to manage the day to day operations of the charity. To facilitate effective operations, the Board has delegated authority to the Chief Executive for all operational matters including finance, employment and performance related activity.
## **Appointment of trustees**
As set out in the Articles of Association the nominations committee will advise the charity on:
- Identification and selection of new trustees and making nominations to the AGM for the appointment of new trustees.
- Policy, criteria and other matters relating to membership of the charity.
- Appointment of the Chair, Deputy Chair, Treasurer and any other office holders.
The nominations committee has delegated authority to carry out its role detailed above and to make such nominations as it sees fit.
The charity is committed to the full involvement of parents in its strategic development and we would always seek to have a third of our membership made up of local parents. Currently 50% of the board is made up of local parents.
The trustees have the power to co-opt any person duly qualified to be appointed as a trustee to fill a vacancy in their number or as an additional trustee but a co-opted trustee holds office only until the next AGM.
All members are circulated with the invitations to nominate trustees prior to the AGM advising them of the retiring trustees and requesting nominations for the AGM.
Nominees appointed by Liverpool City Council and Liverpool Primary Care Trust are subject to the appointment processes of those bodies and the guidelines on appointment to public office as they apply to Local Government and Department of Health nominees.
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**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023 (continued)**
## **Structure Trustee induction and training**
New trustees undergo an induction to brief them on:
- Their legal obligations under charity and company law.
- The content of the Memorandum and Articles of Association.
- Decision making processes.
- The business plan.
- Recent financial performance of the charity.
- The Code of Conduct for Board Members.
- Their responsibilities for safeguarding children.
During the induction period board members arrangements are made for them to meet key employees and other trustees.
Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. The charity ensures adequate funds are available for trustees to undertake training in relation to their roles and responsibilities.
## **Statement of trustees’ responsibilities**
The trustees (who are also directors of Five Children and Families Trust Ltd for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year. 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 resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that 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. The trustees 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.
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## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Report of the Trustees for the year ended 31st March 2023 (continued)**
## **Trustees’ statement of disclosure of information to the auditors**
Each of the persons who is a trustee at the date of approval of this report confirm in so far as they are aware that:
- there is no relevant audit information of which the charitable company’s auditor is unaware, and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
By Order of the Trustees S. Roberts Secretary
29 December 2023
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## **Mitchell Charlesworth (Audit) Limited**
Accountants 5 Temple Square Temple Street Liverpool L2 5RH
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
**Independent Auditor’s Report to the Members of**
**Five Children and Families Trust Ltd**
**For the year ended 31st March 2023**
## **Opinion**
We have audited the financial statements of Five Children and Families Trust Ltd (the ‘charitable company’) for the year ended 31st March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31st March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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## **Mitchell Charlesworth (Audit) Limited**
## Accountants
5 Temple Square Temple Street Liverpool L2 5RH
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
**Independent Auditor’s Report to the Members of Five Children and Families Trust Ltd**
**For the year ended 31st March 2023 [Continued]**
## **Other information**
The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
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## **Mitchell Charlesworth (Audit) Limited**
Accountants 5 Temple Square Temple Street Liverpool L2 5RH
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
**Independent Auditor’s Report to the Members of Five Children and Families Trust Ltd**
**For the year ended 31st March 2023 [Continued]**
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities set out on page 11, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
## **Identifying and assessing potential risks related to irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
- the nature of the industry and sector, control environment and business performance;
-
- the charitable company’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
-
- the results of our enquiries of management and members of the Board of Trustees of their own identification of and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the charitable company’s documentation of their policies and procedures relating to:
**15 | P a g e**
## **Mitchell Charlesworth (Audit) Limited**
## Accountants 5 Temple Square Temple Street Liverpool L2 5RH
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
**Independent Auditor’s Report to the Members of Five Children and Families Trust Ltd**
**For the year ended 31st March 2023 [Continued]**
## **Identifying and assessing potential risks related to irregularities (continued)**
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i) The presentation of the charity's Statement of Financial Activities, (ii) the charity's accounting policy for revenue recognition, and (iii) the overstatement of salary and other costs. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and the Statement of Recommended Practice - 'Accounting and Reporting by Charities' issued by the joint SORP making body.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company’s ability to operate or to avoid a material penalty. These included Safeguarding and Data Protection regulations.
## **Audit response to risks identified**
As a result of performing the above, we identified the presentation of the charitable company’s Statement of Financial Activities, revenue recognition and overstatement of wages and other costs as the key audit matters related to the potential risk of fraud. The key audit matters section of our report explains the matters in more detail and also describes the specific procedures we performed in response to those key audit matters.
In addition to the above, our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
- enquiring of management and members of the Board of Trustees concerning actual and potential litigation and claims;
**16 | P a g e**
## **Mitchell Charlesworth (Audit) Limited**
## Accountants
5 Temple Square Temple Street Liverpool L2 5RH
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
**Independent Auditor’s Report to the Members of Five Children and Families Trust Ltd**
**For the year ended 31st March 2023 [Continued]**
## **Audit response to risks identified (continued)**
- reading minutes of meetings of those charged with governance and reviewing correspondence with relevant authorities where matters identified were significant;
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Mr Philip Griffiths**
Senior Statutory Auditor
29 December 2023
## **On behalf of Mitchell Charlesworth (Audit) Limited**
Statutory Auditor
3rd Floor 5 Temple Square Temple Street Liverpool Merseyside L2 5RH
**17 | P a g e**
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31st March 2023**
## **Summary Income and Expenditure Account**
|**Unrestricted**
**Restricted**
**Notes**
**funds**
**funds**
**Income from:**
**£**
**£**
Donations and legacies
2
3,732
-
Charitable activities
3
998,475
517,464
**Total income**
1,002,207
517,464
**Expenditure on:**
Charitable activities
4
890,132
666,088
**Total expenditure**
890,132
666,088
**Net income/(expenditure) for the year**
7
112,075
(148,624)
**Total funds brought forward**
77,923
349,920
**Total funds carried forward**
189,998
201,296|**Total**
**2023**
**£**
3,732
1,515,939
1,519,671
1,556,220
1,556,220
(36,549)
427,843
391,294|**Total**
**2022**
**£**
37,671
1,572,865
1,610,536
1,543,852
1,543,852
66,684
361,159
427,843|
|---|---|---|
The charity has no recognised gains or losses other than the results for the year as set out above. All activities of the charity are classed as continuing.
The notes on pages 22 to 32 form part of these accounts.
**18 | P a g e**
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31st March 2023**
## **Comparative information for the year ended 31st March 2022**
|**Unrestricted**
**Restricted**
**Notes**
**funds**
**funds**
**Income from:**
**£**
**£**
Donations and legacies
2
33,892
3,779
Charitable activities
3
871,308
701,557
**Total income**
905,200
705,336
**Expenditure on:**
Charitable activities
4
1,006,124
537,728
**Total expenditure**
1,006,124
537,728
**Net income/(expenditure for the year**
7
(100,924)
167,608
**Total funds brought forward**
178,847
182,312
**Total funds carried forward**
77,923
349,920|**Total**
**2022**
**£**
37,671
1,572,865
1,610,536
1,543,852
1,543,852
66,684
361,159
427,843|**Total**
**2021**
**£**
168,337
1,257,578
1,425,915
1,393,231
1,393,231
32,684
328,475
361,159|
|---|---|---|
The charity has no recognised gains or losses other than the results for the year as set out above. All activities of the charity are classed as continuing.
The notes on pages 22 to 32 form part of these accounts.
**19 | P a g e**
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Balance Sheet 31st March 2023**
|**Notes**
**Fixed assets**
Tangible assets
10
**Current assets**
Debtors
11
Cash at bank and in hand
**Creditors**
Amounts falling due within one year
12
**Net current (liabilities)/assets**
**Total assets less current liabilities**
**Creditors**
Amounts falling due over one year
13
**Funds**
**Unrestricted funds**
General funds
17
**Restricted funds**
18
**Total funds**
19|**2023**
**2022**
**£**
**£**
**£**
**£**
194,037
240,196
64,471
65,757
251,539
328,847
316,010
394,604
(91,933)
(170,496)
224,077
224,108
418,114
464,304
(26,820)
(36,461)
391,294
427,843
189,998
77,923
201,296
349,920
391,294
427,843|
|---|---|
The accounts on pages 18 to 32 were approved by the trustees and authorised for issue on 29 December 2023 and signed on their behalf by:-
M Ord Trustee
Company Registration Number: 4241965
The notes on pages 22 to 32 form part of these accounts.
**20 | P a g e**
## **FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Statement of Cash Flows for the year ended 31st March 2023**
|**Notes**
**Cash flow from operating activities**
22
**Cash flow from investing activities**
Payments to acquire tangible fixed assets
**Net cash flow from investing activities**
**Cash flow from financing activities**
Repayments of loans
Interest paid
**Net cash flow from financing activities**
**Change in cash and cash equivalents in the**
**year ending 31st March 2023**
**Cash and cash equivalents as at 1st April 2022**
**Cash and cash equivalents as at 31st**
**March 2023**|**2023**
**£**
**£**
(40,815)
(11,181)
(11,181)
(23,438)
(1,874)
(25,312)
(77,308)
328,847
251,539|**2022**
**£**
**£**
138,115
(71,172)
(71,172)
(23,055)
(10,875)
(33,930)
33,013
295,834
328,847|
|---|---|---|
**21 | P a g e**
**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Notes to the Accounts Year ended 31st March 2023**
## **1. Summary of significant accounting policies**
## **(a) General information and basis of preparation**
Five Children and Families Trust is a company limited by guarantee and a registered charity in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are set out in the Trustees’ Report on page 2.
The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **(b) Funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. In some instances these funds are designated by the trustees for specific purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **(c) Income recognition**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.
**22 | P a g e**
**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Notes to the Accounts Year ended 31st March 2023**
## **1. Summary of significant accounting policies (continued)**
## **(c) Income recognition (continued)**
Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to special performance conditions and is recognised as earned as the related services are provided. Grant income included in this category provides funding to support performance activities and is recognised when there is entitlement, certainty of receipt and the amounts can be measured with sufficient reliability.
Investment income is earned through holding assets for investment purposes such as bank deposits. It essentially includes interest which is recognised using the effective interest method.
## **(d) Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Expenditure on charitable activities includes expenditure for running the Children Centre and activities provided therein.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
## **(e) Support costs allocation**
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at the Children’s Centre. Where support costs cannot be directly attributed to particular headings they have been allocated to expenditure on charitable activities on a basis consistent with use of the resources.
The analysis of these costs is included in note 5.
## **(f) Tangible fixed assets**
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
Building improvements - 10% per annum Fixtures and fittings - 25% per annum
## **(g) Investments**
Investments are recognised at fair value which is normally the transaction price excluding transaction costs, less impairment.
**23 | P a g e**
**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Notes to the Accounts Year ended 31st March 2023**
## **1. Summary of significant accounting policies (continued)**
## **(h) 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.
## **(i) Loans and borrowings**
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
## **(j) Impairment**
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
## **(k) Leases**
Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.
## **(l) Employee benefits**
When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.
## **(m) 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.
## **(n) 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.
**24 | P a g e**
**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Notes to the Accounts Year ended 31st March 2023**
## **2. Income from donations and legacies**
|**Income from donations and legacies**||||
|---|---|---|---|
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Donations and other sundry income
-
-
Covid support grants
3,732
-
3,732
-
||**Total**
**2023**
**£**
-
3,732
3,732|**Total**
**2022**
**£**
7,636
30,035
37,671|
|||||
£3,779 of the above income in 2022 was attributed to restricted funds and £33,892 of the above income in 2022 was attributed to unrestricted funds.
## **3. Income from charitable activities**
|**Income from charitable activities**|||
|---|---|---|
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Children’s Centres - Liverpool City Council
-
345,982
Nursery income
805,629
-
Letting of Centre
41,484
-
Health and wellbeing
9,146
171,482
Kids Club
67,134
-
Other
75,082
-
998,475
517,464|**Total**
**2023**
**£**
345,982
805,629
41,484
180,628
67,134
75,082
1,515,939|**Total**
**2022**
**£**
296,168
723,181
28,738
175,326
52,955
296,497|
|||1,572,865|
£461,444 of the above income in 2022 was attributed to restricted funds and £709,311 of the above income in 2022 was attributed to unrestricted funds.
**25 | P a g e**
**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Notes to the Accounts Year ended 31st March 2023**
|**4.**
**Analysis of expenditure on charitable**
**activities**
Children’s Centres
Nursery
Health and wellbeing
Building and support
Kids Club
Other|**Direct**
**costs**
**£**
277,896
730,709
242,971
11,892
56,296
72,994
1,392,758|**Support**
**costs**
**£**
6,813
25,297
-
121,308
-
10,044
163,462|**Total**
**2023**
**£**
284,709
756,006
242,971
133,200
56,296
83,038
1,556,220|**Total**
**2022**
**£**
274,552
787,524
153,823
237,405
60,297
30,251
1,543,852|
|---|---|---|---|---|
£666,088 (2022 £528,728) of the above costs were attributed to restricted funds and £890,132 (2022 £1,006,124) of the above costs were attributed to unrestricted funds.
|**5.**
**Support costs**
Staff and volunteer costs
Premises costs
Depreciation
Office costs
Legal and professional
Information technology
Other
Governance costs (note 6)
**6.**
**Governance costs**
Fees payable to the charity’s auditor (and its associates) for the audit of the
charity’s annual accounts
**7.**
**Net incoming/(outgoing)resources for the year**
This is stated after charging:
Depreciation
Audit fee|**Total**
**2023**
**£**
112
68,676
57,340
14,007
5,620
251
8,421
9,035
163,462
**Total**
**2023**
**£**
9,035
**Total**
**2023**
**£**
57,340
9,035|**Total**
**2022**
**£**
13,463
70,526
67,908
15,456
9,107
1,299
18,329
14,810
210,898|
|---|---|---|
|||**Total**
**2022**
**£**
14,810|
|||**Total**
**2022**
**£**
63,791
14,810|
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**FIVE CHILDREN AND FAMILIES TRUST LTD**
**Notes to the Accounts Year ended 31st March 2023**
## **8. Staff costs and numbers**
|**Staff costs and numbers**
Salaries and wages
Social security costs
Other pension costs
There are no employees earning at the rate of £60,000 or more per annum.
The average weekly number of employees during the year, was as follows:-
Total|**Total**
**2023**
**£**
1,017,669
66,914
26,744
1,111,327
**2023**
**Number**
67
|**Total**
**2022**
**£**
1,000,940
58,868
27,666|**Total**
**2022**
**£**
1,000,940
58,868
27,666|
|---|---|---|---|
|||1,087,474||
||||**2022**
**Number**
54|
## **9. Trustees’ and key management**
The trustees received remuneration during the year totalling £Nil (2022 £5,346). The remuneration paid to one trustee in the prior year was in respect of sessional work performed to provide short term cover for sickness and other absences. No expenses (2022 £Nil) were reimbursed to any trustees (2022 - 0) during the year.
The total amount of employee benefits received by key management personnel is £231,748 (2022 £151,677).
The charity considers its key management personnel to comprise the Programme Director, Deputy Children’s Centre Manager, Building Manager and Team Leader, the Finance Manager and two Nursery Managers.
## **10.**
|**Tangible fixed assets**
**Building**
**Fixtures and**
**improvements**
**equipment**
**Cost**
**£**
**£**
At 1st April 2022
528,424
134,078
Additions
-
11,181
31st March 2023
528,424
145,259
**Depreciation**
At 1st April 2022
294,138
128,168
Charge for the year
51,997
5,343
At 31st March 2023
346,135
133,511
**Net book value**
At 31st March 2023
182,289
11,748
At 31st March 2022
234,286
5,910|**Total**
**£**
662,502
11,181
673,683
422,306
57,340
479,646
194,037
240,196|
|---|---|
**27 | P a g e**
**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Notes to the Accounts Year ended 31st March 2023**
|**11.**
**Debtors**
Trade debtors
**12.**
**Creditors: Amounts falling due within one year**
Bank loan
Keyfund loan
Trade creditors
Accruals and deferred income
Social security and other taxes
**13.**
**Creditors: Amounts falling due after more than one year**
Bank loan||**2023**
**£**
64,471
**2023**
**£**
9,849
-
10,702
70,020
1,362
91,933
**2023**
**£**
26,820
26,820|**2022**
**£**
65,757
**2022**
**£**
9,607
14,039
48,459
79,132
19,259
170,496|
|---|---|---|---|
|||||
||||**2022**
**£**
36,461
36,461|
The loan from the Key Fund was unsecured, with interest charged at 12% per annum.
The charity took out a loan from Barclays Bank plc under the terms of the Covid Bounce Back loan scheme. The loan is unsecured, is repayable by October 2026 and interest is currently charged at 2.5% per annum.
## **14. Maturity of debt**
Creditors include finance capital which is due for repayment as follows:-
|Amounts repayable:-
In one year or less or on demand
In more than one year but not more than two years
In two to five years|**2023**
**£**
9,849
10,098
16,722
36,669|**2022**
**£**
23,646
9,850
26,611
60,107|
|---|---|---|
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**Notes to the Accounts Year ended 31st March 2023**
## **15. Capital commitments**
There were no capital commitments at 31st March 2023 and 31st March 2022.
## **16. Members’ liability**
The company is limited by guarantee and has no share capital. Every member of the Association undertakes to contribute to the assets of the company, in the event of being wound up while he or she is a member or within one year of ceasing to be a member for debts and liabilities of the company contracted before he or she ceases to be a member, such amount as may be required not exceeding £1.
|**17.**|**Unrestricted funds**|**As at**|||**As at**|
|---|---|---|---|---|---|
|||**01.04.22**|**Income**|**Expenditure**|**31.03.23**|
|||**£**|**£**|**£**|**£**|
||General fund|77,923|1,002,207|(890,132)|189,998|
Comparative information in respect of the preceding period is as follows:-
|
General fund
**18.**
**Restricted funds**
**Children’s centre grants:**
Children’s centre - Liverpool City Council
Garston centre - Liverpool City Council
**Nursery grants:**
Liverpool City Council Capital Grant 2
DHL UK Foundation
Bambinis
Youth Consortium
**Sundry grants:**
Liverpool City Council Projects
Autism - Liverpool City Council
Hardship fund
Other|**As at**
**01.04.21**
**£**
178,847
**As at**
**01.04.22**
**£**
-
-
102,932
1,500
37,286
-
199,150
5,000
4,052
-
349,920
||**Income**
**Expenditure**
**£**
**£**
905,200
(1,006,124)
**Income**
**Expenditure**
**£**
**£**
333,853
(333,853)
9,759
(9,759)
-
(41,067)
-
(1,500)
85,626
(82,631)
85,856
(85,856)
-
(100,000)
-
(5,000)
-
(4,052)
2,370
(2,370)
517,464
(666,088)
|**As at**
**31.03.22**
**£**
77,923|
|---|---|---|---|---|
|||||**As at**
**31.03.23**
**£**
-
-
61,865
-
40,281
-
99,150
-
-
-|
|||||201,296|
**29 | P a g e**
**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Notes to the Accounts Year ended 31st March 2023**
## **18. Restricted funds (continued)**
Comparative information in respect of the preceding period is as follows:-
|
**Children’s centre grants:**
Children’s centre - Liverpool City Council
Garston centre - Liverpool City Council
**Nursery grants:**
Liverpool City Council Capital Grant
Liverpool City Council Capital Grant 2
DHL UK Foundation
Bambinis
Youth Consortium
**Sundry grants:**
Liverpool City Council Projects - Beat
abuse
Autism - Liverpool City Council
Hardship fund
Young Advisors
Other|**As at**
**01.04.21**
**£**
-
-
8,780
143,999
3,000
23,261
-
-
-
3,272
-
-
182,312
|**Income**
**Expenditure**
**£**
**£**
286,434
(286,434)
9,734
(9,734)
-
(8,780)
-
(41,067)
-
(1,500)
90,900
(76,875)
84,426
(84,426)
200,000
(850)
24,300
(19,300)
800
(20)
4,963
(4,963)
3,779
(3,779)
705,336
(537,728)
|**As at**
**31.03.22**
**£**
-
-
-
102,932
1,500
37,286
-
199,150
5,000
4,052
-
-
349,920|
|---|---|---|---|
## **Children’s Centre – Liverpool City Council**
This project is funded by the Government through Local Authorities and can only be used for Children’s Centre Services as defined and agreed with the Local Authority/Government under a Service Level Agreement.
## **Nursery and Kids Club (Childcare Provision)**
We operate a 0 – 5 year old nursery alongside a 4 – 12 year old Kids Club. Grant funding has been received to develop and enhance Childcare provision and staff training together with Nursery Educational Fund. This is paid from the Local Authority but forms part of an individual entitlement for all children aged 3-4 to receive 15 hours free childcare. Similarly we have been in receipt of a fund piloting the same entitlement for 2 year olds and this programme is now being launched nationally.
## **Liverpool City Council Capital Grant**
Liverpool City Council awarded a grant for the restructure and expansion of the Nursery. The major works were completed in 2013/14.
## **DHL UK Foundation**
DHL provided a total of £15,000 as a contribution towards alterations to the Nursery space.
## **Bambinis**
Bambinis is a community led initiative working to support women to initiate and sustain breastfeeding. The charity receives funding through a service level agreement with Liverpool City Council to deliver this citywide service operating through Liverpool Women’s Hospital Trust and Liverpool Children Centres.
**30 | P a g e**
**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Notes to the Accounts Year ended 31st March 2023**
|**19.**
**Analysis of net assets between funds**
**Unrestricted**
**Restricted**
**Funds**
**Funds**
**£**
**£**
Tangible fixed assets
132,172
61,865
Net current assets
84,646
139,431
Creditors due after one year
(26,820)
-
**Net assets at 31st March 2023**
189,998
201,296
Comparative information in respect of the preceding period is as follows:-
**Unrestricted**
**Restricted**
**Funds**
**Funds**
**£**
**£**
Tangible fixed assets
135,764
104,432
Net current assets
(21,380)
245,488
Creditors due after one year
(36,461)
-
**Net assets at 31st March 2022**
77,923
349,920|**Total**
**Funds**
**£**
194,037
224,077
(26,820)
391,294
**Total**
**Funds**
**£**
240,196
224,108
(36,461)
427,843|
|---|---|
## **20. Related party transactions**
There are no related party transactions other than those referred to in note 9 to the accounts.
## **21. Pension costs**
The employers’ contributions into the individual pension plans of certain employees amounted to £26,744 (2022 £27,666) and the amount unpaid and included in creditors at 31st March 2023 was £Nil (2022 £5,921).
## **22.**
|**Reconciliation of net income/(expenditure) to net cash flow from**
**Operating activities**
**Net income/(expenditure) for the year**
Depreciation charges
Interest payable
Decrease / (increase) in debtors
Increase / (decrease) in creditors
**Net cash flow from operating activities**|**Total**
**2023**
**£**
(36,549)
57,340
1,874
1,286
(64,766)
(40,815)|**Total**
**2022**
**£**
66,684
67,908
10,875
(24,147)
16,795
138,115|
|---|---|---|
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**FIVE CHILDREN AND FAMILIES TRUST LTD**
## **Notes to the Accounts Year ended 31st March 2023**
|**22.**|**Analysis of net debt**|**At 1 April**||**Non-cash**|**At 31 March **|
|---|---|---|---|---|---|
|||**2022**|**Cash flows**|**movements**|**2023**|
|||**£**|**£**|**£**|**£**|
||Cash at bank|324,472|(75,468)|-|249,004|
||Cash in hand|4,375|(1,840)|-|2,535
|
|||328,847|(77,308)|-|251,539|
||Debt due within one year|(23,646)|23,438|(9,641)|(9,849)|
||Debt due after more than one year|(36,461)|-|9,641|(26,820)
|
|||268,740
|(53,870)|-|214,870|
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