Charity registration number 1113357
Company registration number 05568542 (England and Wales)
ABC CHILDCARE (IPSWICH) LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
ABC CHILDCARE (IPSWICH) LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr I Rowe |
|---|---|
| Mr D Gordon | |
| Mr B Chisnall | |
| Mrs J K Smith | |
| Secretary | Mrs J K Smith |
| Charity number | 1113357 |
| Company number | 05568542 |
| Principal address | 537 Foxhall Road |
| Ipswich | |
| Suffolk | |
| IP3 8LR | |
| Registered office | 537 Foxhall Road |
| Ipswich | |
| Suffolk | |
| IP3 8LR | |
| Independent examiner | Staines and Co |
| 235 Foxhall Road | |
| Ipswich | |
| Suffolk | |
| IP3 8LF |
ABC CHILDCARE (IPSWICH) LIMITED
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
ABC CHILDCARE (IPSWICH) LIMITED
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2022
The trustees present their annual report and financial statements for the year ended 31 December 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements 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 (FRS 102)" (effective 1 January 2019).
Objectives and activities
The objects of the charity is to enhance the development and education of children in the east of Ipswich area aged 2 to 11 years by encouraging parents to understand and provide for the needs of their children.
The activities carried out by the charity for the public benefit are the continued running of PRe-School, After School, Holiday and Breakfast Club services so parents are safe in the knowledge their children are being properly looked after.
The trustees confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England & Wales.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Financial review
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
ABC Childcare (Ipswich) Limited is a company limited by Guarantee, governed by it's Memorandum & Articles of Association dated 2nd March 2009.
The company is a registered charity with the Charities Commission.
Anyone over the age of 18 can become a member of the company.
Each Trustee must contribute £1 each on the winding up of the company.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr I Rowe
Mr D Gordon
Mr B Chisnall Mrs J K Smith
Trustees are appointed at the company's AGM in accordance with Clause 4 of the Articles of Association.
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ABC CHILDCARE (IPSWICH) LIMITED
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
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settle the terms of payment with suppliers when agreeing the terms of each transaction;
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ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
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pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year.
The company is controlled by the committee consisting of Trustee's and Directors elected annually in accordance with Clause 4 of the Articles of Association.
The trustees (who are also the Directors of ABC Childcare (Ipswich) Limited for the purpose of company law) are responsible for preparing the Trustee's Report and the financial statements in accordance with United Kingdom accounting standards and applicable law and regulations.
The trustees report was approved by the Board of Trustees.
Mrs J K Smith Mr D Gordon Trustee Trustee
25 May 2023
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ABC CHILDCARE (IPSWICH) LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF ABC CHILDCARE (IPSWICH) LIMITED
I report to the trustees on my examination of the financial statements of ABC Childcare (Ipswich) Limited (the charity) for the year ended 31 December 2022.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements 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 financial statements to be reached.
Staines and Co
235 Foxhall Road Ipswich Suffolk IP3 8LF
Dated: 29 May 2023
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ABC CHILDCARE (IPSWICH) LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income and endowments from: | |||
| Grant funding | 3 | 104,104 | 111,908 |
| Charitable activities | 4 | 99,519 | 72,054 |
| Other trading activities | 5 | 1,133 | 1,246 |
| Investments | 6 | 51 | 14 |
| Other income | 7 | - | 16,990 |
| Total income | 204,807 | 202,212 | |
| Expenditure on: | |||
| Raising funds | 8 | 202,321 | 200,066 |
| Total expenditure | 202,321 | 200,066 | |
| Net income for the year/ | |||
| Net movement in funds | 2,486 | 2,146 | |
| Fund balances at 1 January 2022 | 415,110 | 412,964 | |
| Fund balances at 31 December 2022 | 417,596 | 415,110 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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ABC CHILDCARE (IPSWICH) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2022
| Notes Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2022 £ 2,890 161,101 163,991 (16,851) |
£ 270,456 147,140 417,596 417,596 417,596 |
2021 £ 1,743 149,024 150,767 (16,678) |
£ 281,021 134,089 |
|---|---|---|---|---|
| 415,110 | ||||
| 415,110 | ||||
| 415,110 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2022.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 25 May 2023
Mr D Gordon Mrs J K Smith Trustee Trustee Company registration number 05568542
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ABC CHILDCARE (IPSWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
Charity information
ABC Childcare (Ipswich) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 537 Foxhall Road, Ipswich, Suffolk, IP3 8LR.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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ABC CHILDCARE (IPSWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it's 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 a particular headings they have been allocated on a basis consistent with the use of the resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the assets used. Other support costs are allocated based on the spread of the staff costs.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings Straight line over 50 years Leasehold land and buildings 25% reducing balance furniture, fixtures and equipment 25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Taxation
The Charity is considered to pass the tests set out in Paragraph 1, Schedule 6 of the of the Finance Act 2010 and therefore 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.
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ABC CHILDCARE (IPSWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
1.10 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Grant funding
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Government Grants | 104,104 | 111,908 |
4 Charitable activities
| Pre School Fees Out of School Club Fees 2022 2022 £ £ Services provided 17,363 82,156 Other income - - 17,363 82,156 |
Total 2022 Pre School Fees Out of School Club Fees 2021 2021 £ £ £ 99,519 5,787 66,238 - 29 - 99,519 5,816 66,238 |
Total 2021 £ 72,025 29 |
|---|---|---|
| 72,054 |
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ABC CHILDCARE (IPSWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
| 5 6 7 8 |
Other trading activities Unrestricted Unrestricted funds funds 2022 2021 £ £ Fundraising events 1,133 1,246 Investments Unrestricted Unrestricted funds funds 2022 2021 £ £ Interest receivable 51 14 Other income Total Unrestricted funds 2022 2021 £ £ HMRC Job Retention Scheme - 6,600 IBC Covid grants - 10,390 - 16,990 Raising funds Unrestricted Unrestricted funds funds 2022 2021 £ £ Fundraising and publicity Staging fundraising events 1,011 111 |
|---|---|
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ABC CHILDCARE (IPSWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
| 8 | Raising funds Trading costs Other trading activities Staff costs Depreciation and impairment Support costs Trading costs |
(Continued) 4,826 5,195 147,137 146,515 11,144 12,641 38,203 35,604 201,310 199,955 202,321 200,066 |
(Continued) 4,826 5,195 147,137 146,515 11,144 12,641 38,203 35,604 201,310 199,955 202,321 200,066 |
|---|---|---|---|
| 199,955 | |||
| 200,066 |
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
10 Employees
The average monthly number of employees during the year was:
| Employment costs Wages and salaries Other pension costs |
2022 Number 11 2022 £ 143,195 3,942 147,137 |
2021 Number 11 |
|---|---|---|
| 2021 £ 136,732 9,783 |
||
| 146,515 |
There were no employees whose annual remuneration was more than £60,000.
11 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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ABC CHILDCARE (IPSWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
| 12 Tangible fixed assets Freehold land and buildings Leasehold land and buildings furniture, fixtures and equipment £ £ £ Cost At 1 January 2022 303,846 41,241 80,885 Additions - - 577 At 31 December 2022 303,846 41,241 81,462 Depreciation and impairment At 1 January 2022 42,538 34,329 68,082 Depreciation charged in the year 6,077 1,728 3,339 At 31 December 2022 48,615 36,057 71,421 Carrying amount At 31 December 2022 255,231 5,184 10,041 At 31 December 2021 261,307 6,911 12,803 13 Debtors 2022 Amounts falling due within one year: £ Trade debtors 2,890 14 Creditors: amounts falling due within one year 2022 £ Other taxation and social security 545 Payments received on account 14,243 Trade creditors 1,118 Accruals and deferred income 945 16,851 |
Total £ 425,972 577 |
|---|---|
| 426,549 | |
| 144,949 11,144 |
|
| 156,093 | |
| 270,456 | |
| 281,021 | |
| 2021 £ 1,743 |
|
| 2021 £ - 14,318 1,580 780 |
|
| 16,678 |
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ABC CHILDCARE (IPSWICH) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
15 Retirement benefit schemes
Defined contribution schemes
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £3,942 (2021 - £9,783).
16 Related party transactions
There were no disclosable related party transactions during the year (2021 - none).
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