Charity Registration Number: 1124274
LITTLE BEARS DAY CARE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1
LITTLE BEARS DAY CARE
LEGAL AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MAY 2024
TRUSTEES Mrs Laura Leath Mrs Katie Allman Mrs Margaret Watkins Mrs Sam Kehoe Mrs Jennifer Ledward Mrs Michelle Read COMPANY SECRETARY Mrs Katie Allman REGISTERED OFFICE Brownlow Community Centre Whitchurch Shropshire SY13 1LF REGISTERED CHARITY NUMBER 1124274 INDEPENDENT EXAMINER Liam O’Neill C/O Brewery Motors Churton Road Farndon Chester Cheshire CH3 6QP
2
LITTLE BEARS DAY CARE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2024
The trustees present their annual report and financial statements for the year ended 31 May 2024 and comply with the requirements of the Charities Act 2011, the Charity’s governing document and the Charities SORP (FRS 102).
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 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)” as amended for accounting periods commencing from 1 January 2016.
The Trustees are responsible for the overall direction of the Charity. The operations are organised by the Management team, appointed by the Trustees, and are supported by appropriately qualified senior and ancillary staff.
The Trustees regularly invite new parents and members of the community to become involved in both the Fundraising and the Management Committee.
There are no assets held by Trustees in the financial year.
Public Benefit
The Trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011.
Objectives and activities
The charity’s objective and its principal activity is the provision of childcare in a safe, caring and stimulating environment. The main activities are registered child care for children from the local community in the following age groups;
-
Aged 3 months – 5 years between the hours of 7:30am to 18:00pm, Monday to Friday, for 51 weeks out of the year; and
-
Aged 5 – 13 years, before/after school clubs and holiday clubs for 51 weeks of the year.
The main aims of the charity are;
-
To provide affordable, inclusive, good quality childcare and education for children that live in the local community.
-
To provide a service that meets the needs of our families and enables parents to leave their children feeling confident in their childcare arrangements.
3
-
To provide a curriculum in which the welfare, security and development of children is of primary importance. Encouraging all children to grow and develop at an individual pace, promoting an awareness of their self worth and expending their understanding of themselves and others around them and to be a valuable member of our day care and our community.
-
To create an environment which feels like home and to provide an extended family environment.
-
To make provision, regarding the diverse needs of the community, embedding British values. To actively consult parents, schools, and outside agencies involved with any child in our care, ensuring that they meet their own unique potential. Recognising that each individual child has different needs relating to personal characteristics and pre-school experiences and that such needs require early identification, in order to build a programme of ongoing development through positive assessment.
-
Create a loving and secure environment, where making choices, mistakes and trying are valued and celebrated. Where promoting independence of action and thought are encouraged. We aim to build children’s confidence in all activities and provide opportunities for play and talk through observing, imagining, experimenting and practicing.
-
Praise and encourage good behaviour, building self-esteem and fostering a caring attitude towards others and their property. Learning to value everyone regardless of gender, race, class or disability, ensuring that all children have equality of opportunity and access to a broad, balanced, relevant and different curriculum within a safe, secure and stimulating environment.
-
Providing an environment where the process of learning is celebrated for children and adults alike.
-
To promote well being and respect
-
To equip our children with skills for learning, life and work, ready to actively grasp and follow their dreams in the future.
Achievements and performance
Little Bears Day Care continues to support families with outstanding care and education for children aged 3 months to 12 years.
Transitions to schools and between rooms have been successful with professionals working together to meet the needs of the individual children.
The Centre has spaces in Panda Bears but there is a wait list for Bear Cubs due to increased demand with the introduction of increased government funding. Breakfast and After School Club continues to provide wrap around care for a small number of children.
Little Bears encourages continuous professional development and has enrolled staff on courses throughout the year.
The fundraising committee has been working hard to ensure that the outdoor space can be improved and this is looking to be completed in 2025.
Plans for future periods
The Trustees are taking a more active involvement in the Day Care and the hope is to continue on ensuring that the day care remains operational and that efforts are made to decrease costs to ensure we can continue to grow the reserves. The Trustees also welcome the support of any new members to the voluntary fundraising and management committees and continue with a programme of maintenance and improvement.
The introduction of the new government funding is challenging but we hope to overcome it and provide Ofsted outstanding childcare.
4
There is a national shortage of qualified early year practitioners. We will continue to train in house and seek apprenticeships to help cater to more children.
Financial Review
Reserves Policy
Review of the financial position of the charity and reserves policy
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 one month’s expenditure. We are aiming to increase this to three months in the future. 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 for a period of time. This level of reserves has been maintained throughout the year.
At the year end, the charity had total funds of £49,005 (2023: 10,064). These were all unrestricted reserves.
The Trustees report was approved by the Board of Trustees.
L J Leath
Chairperson
Date: 31 March 2025
5
LITTLE BEARS DAY CARE
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
| Notes Income and endowments from: Donations and legacies 2 Charitable activities 3 Other trading activities 4 Other income 5 Total Income Net income/(expenditure) and movement in funds Reconciliation of funds Fund balances at 1 June 2023 Fund balances at 31 May 2024 |
Unrestricte d Funds Restricte d Funds Total Unrestricte d Funds Restricte d Funds Total 2024 2024 2024 2023 2023 2023 £ £ £ £ £ £ 750 - 750 400 - 400 413,427 - 413,427 325,170 - 325,170 7,720 - 7,720 3,607 - 3,607 3,475 - 3,475 425,372 - 425,372 329,177 - 329,177 49,00 5 49,0 05 - 26,708 - 26,708 10,104 - 10,104 36,812 - 36,812 |
|---|---|
| 59,102 - 59,102 10,104 - 10,104 |
6
LITTLE BEARS DAY CARE
BALANCE SHEET
AS AT 31 MAY 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Fixed Assets | |||
| 4,78 | 2,19 | ||
| Tangible Assets | 13 | 1 | 1 |
| Current Assets | |||
| 7,48 | - | ||
| Debtors | 11 | 4 | 7,127 |
| 50,33 | 46,92 | ||
| Cash at bank and in hand | 10 | 9 | 1 |
| 3,49 | 31,88 | ||
| Creditors: amounts falling due within one year | 12 | 4 | 0 |
| 54,32 | 7,91 | ||
| Net current assets | 9 | 4 | |
| 59,11 | 10,10 | ||
| Total assets less current liabilities | 0 | 5 | |
| 59,11 | 10,10 | ||
| Net Assets | 0 | 5 | |
| Reserves | |||
| Restricted Fund | - | - | |
| 59,11 | 10,10 | ||
| Unrestricted Fund | 0 | 4 |
7
LITTLE BEARS DAY CARE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1 Accounting Policies
Charity Information
Little Bears Day Care is a Charity incorporated in England and Wales. The registered office is Brownlow Community Centre, Claypit Street, Whitchurch, SY13 1LF.
Accounting convention
The financial statements have been prepared in accordance with the charity’s governing document, 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)” (as amended for accounting period commencing from 1 January 2016.) The charity is a Public Benefit Entity as defined by FRS102.
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. The principal accounting policies adopted are set out below.
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.
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 or grantors 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.
Incoming Resources
Income is recognised when the charity is legally entitles to it after any performance obligations 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.
8
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.
Resources expended
Expenditure is recognised once there is a legal of 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.
Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that result in the payment being unavoidable.
Costs of generating funds are those costs incurred in trading activities that raise funds.
Charitable activities are those costs incurred by the charity in meeting its charitable objectives.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with the constitutional and statutory requirements.
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;
Plant and equipment 20% straight line Fixtures and fittings 20% straight line Computers 33.33% straight line
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.
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).
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.
9
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled.
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Donations and Grants
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|
| funds | funds | funds | Funds | |||
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
| £ | £ | £ | £ | £ | £ | |
| Donations and gifts | 750 | 0 | 750 | 400 | 0 | 400 |
10
3 Income from trading activities
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Nursery fees and funding | 413,427 | 325,170 | |
| 4 | Income from other trading activities | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Fundraising events | 7,720 | 3,607 | |
| 5 | Other Income | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Other Income | 3,475 | 16,035 |
11
6 Expenditure on charitable activities
| Direct costs Staff costs Depreciation and impairment IT costs Bins Cleaning Insurance Sundry Subscriptions Staff Training Rent Legal Expenses |
2024 2023 £ £ 316,318 315,011 2,806 26 1,516 2,816 4,005 3,285 644 630 5,073 6,763 17,445 15,480 2,507 2,909 1,678 1,272 18,726 17,833 4,899 5,494 |
|---|---|
| 375,617 371,520 |
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
8 Employees
The average monthly number of employees during the year was:
| 2024 | 2023 | |
|---|---|---|
| 21 | 18 | |
| Employment Costs | ||
| Wages and Salaries | 287,712 | 290,761 |
| Social security costs | 18,992 | 16,517 |
| Other pension costs | 9,714 | 7,734 |
12
9 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
| 10 | Cash at bank and in hand | ||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| 50,339 | 46,921 | ||
| 11 | Debtors | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Amounts falling due within one year: | |||
| Trade debtors | 6,722 | -7,127 | |
| Prepayments and accrued income | 762 | 0 | |
| 7,484 | -7,127 | ||
| 12 | Creditors | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Creditors: amounts falling due within one year |
13
| Other taxation and social security Trade Creditors |
2,690 26,874 804 5,007 |
|---|---|
| 3,494 31,880 |
13 Retirement Benefit Schemes
| estricted Funds Defined contribution schemes Charge to profit or loss in respect of defined contribution schemes |
2024 2023 £ £ |
|---|---|
| 9,61 4 7,73 4 |
14 Restricted Funds 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 restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
| At 1 | At 31 | ||||||
|---|---|---|---|---|---|---|---|
| June | Incoming | Resources | May | ||||
| 2023 | Resources | expended | 2024 | ||||
| £ | £ | ||||||
| - | - | - | - | ||||
| At 1 | At 31 | ||||||
| June | Incoming | Resources | May | ||||
| Previous year | 2022 | Resources | expended | 2023 | |||
| Whitchurch Town Council | - | 400 | (400) | - |
14
15 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 June | Incoming | Resources | At 31 | May | ||
|---|---|---|---|---|---|---|
| 2023 | Resources | expended | 2024 | |||
| £ | £ | £ | £ | |||
| General Funds | 10,104 | 424,622 | ( 375,617) | 49,005 | ||
| Previous year | At 1 June | Incoming | Resources | At 31 | May | |
| 2022 | Resources | expended | 2023 | |||
| £ | £ | £ | £ | |||
| General Funds | 36,812 | 344,812 | (371,560) | 10,064 |
16 Related Party Transactions
There were no related party transactions during the year (2023 – none).
15
Charity Registration Number: 1124274
LITTLE BEARS DAY CARE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1
LITTLE BEARS DAY CARE
LEGAL AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MAY 2024
TRUSTEES Mrs Laura Leath Mrs Katie Allman Mrs Margaret Watkins Mrs Sam Kehoe Mrs Jennifer Ledward Mrs Michelle Read COMPANY SECRETARY Mrs Katie Allman REGISTERED OFFICE Brownlow Community Centre Whitchurch Shropshire SY13 1LF REGISTERED CHARITY NUMBER 1124274 INDEPENDENT EXAMINER Liam O’Neill C/O Brewery Motors Churton Road Farndon Chester Cheshire CH3 6QP
2
LITTLE BEARS DAY CARE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MAY 2024
The trustees present their annual report and financial statements for the year ended 31 May 2024 and comply with the requirements of the Charities Act 2011, the Charity’s governing document and the Charities SORP (FRS 102).
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 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)” as amended for accounting periods commencing from 1 January 2016.
The Trustees are responsible for the overall direction of the Charity. The operations are organised by the Management team, appointed by the Trustees, and are supported by appropriately qualified senior and ancillary staff.
The Trustees regularly invite new parents and members of the community to become involved in both the Fundraising and the Management Committee.
There are no assets held by Trustees in the financial year.
Public Benefit
The Trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011.
Objectives and activities
The charity’s objective and its principal activity is the provision of childcare in a safe, caring and stimulating environment. The main activities are registered child care for children from the local community in the following age groups;
-
Aged 3 months – 5 years between the hours of 7:30am to 18:00pm, Monday to Friday, for 51 weeks out of the year; and
-
Aged 5 – 13 years, before/after school clubs and holiday clubs for 51 weeks of the year.
The main aims of the charity are;
-
To provide affordable, inclusive, good quality childcare and education for children that live in the local community.
-
To provide a service that meets the needs of our families and enables parents to leave their children feeling confident in their childcare arrangements.
3
-
To provide a curriculum in which the welfare, security and development of children is of primary importance. Encouraging all children to grow and develop at an individual pace, promoting an awareness of their self worth and expending their understanding of themselves and others around them and to be a valuable member of our day care and our community.
-
To create an environment which feels like home and to provide an extended family environment.
-
To make provision, regarding the diverse needs of the community, embedding British values. To actively consult parents, schools, and outside agencies involved with any child in our care, ensuring that they meet their own unique potential. Recognising that each individual child has different needs relating to personal characteristics and pre-school experiences and that such needs require early identification, in order to build a programme of ongoing development through positive assessment.
-
Create a loving and secure environment, where making choices, mistakes and trying are valued and celebrated. Where promoting independence of action and thought are encouraged. We aim to build children’s confidence in all activities and provide opportunities for play and talk through observing, imagining, experimenting and practicing.
-
Praise and encourage good behaviour, building self-esteem and fostering a caring attitude towards others and their property. Learning to value everyone regardless of gender, race, class or disability, ensuring that all children have equality of opportunity and access to a broad, balanced, relevant and different curriculum within a safe, secure and stimulating environment.
-
Providing an environment where the process of learning is celebrated for children and adults alike.
-
To promote well being and respect
-
To equip our children with skills for learning, life and work, ready to actively grasp and follow their dreams in the future.
Achievements and performance
Little Bears Day Care continues to support families with outstanding care and education for children aged 3 months to 12 years.
Transitions to schools and between rooms have been successful with professionals working together to meet the needs of the individual children.
The Centre has spaces in Panda Bears but there is a wait list for Bear Cubs due to increased demand with the introduction of increased government funding. Breakfast and After School Club continues to provide wrap around care for a small number of children.
Little Bears encourages continuous professional development and has enrolled staff on courses throughout the year.
The fundraising committee has been working hard to ensure that the outdoor space can be improved and this is looking to be completed in 2025.
Plans for future periods
The Trustees are taking a more active involvement in the Day Care and the hope is to continue on ensuring that the day care remains operational and that efforts are made to decrease costs to ensure we can continue to grow the reserves. The Trustees also welcome the support of any new members to the voluntary fundraising and management committees and continue with a programme of maintenance and improvement.
The introduction of the new government funding is challenging but we hope to overcome it and provide Ofsted outstanding childcare.
4
There is a national shortage of qualified early year practitioners. We will continue to train in house and seek apprenticeships to help cater to more children.
Financial Review
Reserves Policy
Review of the financial position of the charity and reserves policy
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 one month’s expenditure. We are aiming to increase this to three months in the future. 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 for a period of time. This level of reserves has been maintained throughout the year.
At the year end, the charity had total funds of £49,005 (2023: 10,064). These were all unrestricted reserves.
The Trustees report was approved by the Board of Trustees.
L J Leath
Chairperson
Date: 31 March 2025
5
LITTLE BEARS DAY CARE
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
| Notes Income and endowments from: Donations and legacies 2 Charitable activities 3 Other trading activities 4 Other income 5 Total Income Net income/(expenditure) and movement in funds Reconciliation of funds Fund balances at 1 June 2023 Fund balances at 31 May 2024 |
Unrestricte d Funds Restricte d Funds Total Unrestricte d Funds Restricte d Funds Total 2024 2024 2024 2023 2023 2023 £ £ £ £ £ £ 750 - 750 400 - 400 413,427 - 413,427 325,170 - 325,170 7,720 - 7,720 3,607 - 3,607 3,475 - 3,475 425,372 - 425,372 329,177 - 329,177 49,00 5 49,0 05 - 26,708 - 26,708 10,104 - 10,104 36,812 - 36,812 |
|---|---|
| 59,102 - 59,102 10,104 - 10,104 |
6
LITTLE BEARS DAY CARE
BALANCE SHEET
AS AT 31 MAY 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Fixed Assets | |||
| 4,78 | 2,19 | ||
| Tangible Assets | 13 | 1 | 1 |
| Current Assets | |||
| 7,48 | - | ||
| Debtors | 11 | 4 | 7,127 |
| 50,33 | 46,92 | ||
| Cash at bank and in hand | 10 | 9 | 1 |
| 3,49 | 31,88 | ||
| Creditors: amounts falling due within one year | 12 | 4 | 0 |
| 54,32 | 7,91 | ||
| Net current assets | 9 | 4 | |
| 59,11 | 10,10 | ||
| Total assets less current liabilities | 0 | 5 | |
| 59,11 | 10,10 | ||
| Net Assets | 0 | 5 | |
| Reserves | |||
| Restricted Fund | - | - | |
| 59,11 | 10,10 | ||
| Unrestricted Fund | 0 | 4 |
7
LITTLE BEARS DAY CARE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1 Accounting Policies
Charity Information
Little Bears Day Care is a Charity incorporated in England and Wales. The registered office is Brownlow Community Centre, Claypit Street, Whitchurch, SY13 1LF.
Accounting convention
The financial statements have been prepared in accordance with the charity’s governing document, 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)” (as amended for accounting period commencing from 1 January 2016.) The charity is a Public Benefit Entity as defined by FRS102.
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. The principal accounting policies adopted are set out below.
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.
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 or grantors 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.
Incoming Resources
Income is recognised when the charity is legally entitles to it after any performance obligations 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.
8
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.
Resources expended
Expenditure is recognised once there is a legal of 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.
Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that result in the payment being unavoidable.
Costs of generating funds are those costs incurred in trading activities that raise funds.
Charitable activities are those costs incurred by the charity in meeting its charitable objectives.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with the constitutional and statutory requirements.
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;
Plant and equipment 20% straight line Fixtures and fittings 20% straight line Computers 33.33% straight line
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.
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).
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.
9
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled.
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Donations and Grants
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|
| funds | funds | funds | Funds | |||
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
| £ | £ | £ | £ | £ | £ | |
| Donations and gifts | 750 | 0 | 750 | 400 | 0 | 400 |
10
3 Income from trading activities
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| Nursery fees and funding | 413,427 | 325,170 | |
| 4 | Income from other trading activities | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Fundraising events | 7,720 | 3,607 | |
| 5 | Other Income | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Other Income | 3,475 | 16,035 |
11
6 Expenditure on charitable activities
| Direct costs Staff costs Depreciation and impairment IT costs Bins Cleaning Insurance Sundry Subscriptions Staff Training Rent Legal Expenses |
2024 2023 £ £ 316,318 315,011 2,806 26 1,516 2,816 4,005 3,285 644 630 5,073 6,763 17,445 15,480 2,507 2,909 1,678 1,272 18,726 17,833 4,899 5,494 |
|---|---|
| 375,617 371,520 |
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
8 Employees
The average monthly number of employees during the year was:
| 2024 | 2023 | |
|---|---|---|
| 21 | 18 | |
| Employment Costs | ||
| Wages and Salaries | 287,712 | 290,761 |
| Social security costs | 18,992 | 16,517 |
| Other pension costs | 9,714 | 7,734 |
12
9 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
| 10 | Cash at bank and in hand | ||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| 50,339 | 46,921 | ||
| 11 | Debtors | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Amounts falling due within one year: | |||
| Trade debtors | 6,722 | -7,127 | |
| Prepayments and accrued income | 762 | 0 | |
| 7,484 | -7,127 | ||
| 12 | Creditors | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Creditors: amounts falling due within one year |
13
| Other taxation and social security Trade Creditors |
2,690 26,874 804 5,007 |
|---|---|
| 3,494 31,880 |
13 Retirement Benefit Schemes
| estricted Funds Defined contribution schemes Charge to profit or loss in respect of defined contribution schemes |
2024 2023 £ £ |
|---|---|
| 9,61 4 7,73 4 |
14 Restricted Funds 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 restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
| At 1 | At 31 | ||||||
|---|---|---|---|---|---|---|---|
| June | Incoming | Resources | May | ||||
| 2023 | Resources | expended | 2024 | ||||
| £ | £ | ||||||
| - | - | - | - | ||||
| At 1 | At 31 | ||||||
| June | Incoming | Resources | May | ||||
| Previous year | 2022 | Resources | expended | 2023 | |||
| Whitchurch Town Council | - | 400 | (400) | - |
14
15 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 June | Incoming | Resources | At 31 | May | ||
|---|---|---|---|---|---|---|
| 2023 | Resources | expended | 2024 | |||
| £ | £ | £ | £ | |||
| General Funds | 10,104 | 424,622 | ( 375,617) | 49,005 | ||
| Previous year | At 1 June | Incoming | Resources | At 31 | May | |
| 2022 | Resources | expended | 2023 | |||
| £ | £ | £ | £ | |||
| General Funds | 36,812 | 344,812 | (371,560) | 10,064 |
16 Related Party Transactions
There were no related party transactions during the year (2023 – none).
15
Independent examinerfs report on th• accounts Section A Independent Examiners Roport Report to the trusteesl members of LIThLE BEARS DAYCARE On accounts for the year ended 31ST MAY 2024 Charity 110 (If any) 1124274 Set out on pages I report to the trustees on my examination of the a(xounts of the abo4 tharity {Ihe Trust") for the year ended 3110512024. Responsibilities and basis of report As the charity's Iruslees. you are responsible for the preparation of the accounts in aco)rdance with the Ulments of the Charities Act 2011 {he Act")- I report in respect of my examination of the Trust's accounts caTTied out under section 145 of the 2011 Act and in carying out my examinalion, I have followed all the applicable Directions given by the Charity Commission under section 145151{b) of the Act. Independent he charity's gross income exceeded £250.000 and l arn qualified to examinerfs statement undertake the examination by being a qualified member of The Association of Ac£ounb"ng Techniaans IA4T) I have completed my examination. l u)nfim) that no material matters have me to my attenkn'on in connection with the examination {other Ihan that disdosed below") which gives me cause lo believe that in, any material respect: the accounting records were not kept in accordan with section 130 of the Charities Act.. or the accounts did not accord with the accounting records. or the accounts did not (xsmply with the applicable requirements conceming the fomi and content of accounts set out in the Charities {Accounts and Reports) Regulations 2008 other than any requirement that the afxounts give a 'true and fairf view which is not a matter (yAered as part of an independent examination. I have concems and have come across no other matters in connection with the examinab.on lo which attention should be drawn in this report in dw to enable a proper understanding of the accounts to be reached. ' Pl&ase dele(e the th)rd8 in the brackets rfihey do not apply. Date: 27.03.2025 UAM O'NEILL Oct 2018-
Relevant professlonal qualifi¢atlonl51 or body (if any): T- ASS(XIATION OF ACCOUNTING TECHNICIANS (AAn Address: 26 QUARRY HILL FARNDON CHESHIRE, CH3 adP Grlll SectFon B Disclosure Only complete Il the examiner needs lo highlight m31enal matters of concem (see CC32, Independent examination of charity a¢Unts.. directions and guidance for examiners). Glv• hero brief details of any Items that th? •x•mln•r wishes to dlscl Oct 2018