ARC COMMUNITY TRUSTEES (Company limited by guarantee) Report and Financial Statements for the year ended 31 March 2024 ClJari4' nuMI?er 1130383 Con/Paiyi iiumbei" 06777i08
ARC COMMUNITY TRUSTEES {Limited by Guarantee) for the year ended 31 March 2024 Reference and Administrative Information...... Annual Report ofthe Board........................................................................................................................... Independent Examiners, Report Statement of Financial Activities......... Balance Sheet.............................................................................................................................................. 10 Cash Flow Statement................................................................................................................................... Notes to the Financial Statements...............................................................................................................12
ARC COMMUNITY TRUSTEES (Limited by Guarantee) for the year ended 31 March 2024 Administrative infomiation During the year and until the date of signature of these financial statements, the composition of the Board of Trustees changed as follows. Additionally, on 31 May 2024, James Rickard resigned as Chairperson of the Board and Jana How was appointed in his stead. Trustees Jana How {Chairpersonl (appointed on 1 August 2023) Elinor Wilkes (Treasurer) Thomas Wood Gillian Walley Yasmin Saleh (appointed on 1 June 2023) Nikita Nemygin (appointed on 27 August 2024) Ninjeri Pandit (appointed on 27 August 2024) James Hopkins (appointed on 12 September 2024) James Rickard (resigned 31 May 2024) Holly Marshall {resigned 30 September 2023) Company registration number 06777508 Charity registration number {England and Wales) 1130383 Company Secretary Nathan Maknight Company Secretarial Limited Bankers C. Hoare & Co. Independent Examiners Lubbock Fine LLP Paternoster House 65 St Paul's Churchyard London EC4M 8AB Registered Office 39 Crosby Row, London, SE13YD
Trustees Annual Report ARC COMMUNITY TRUSTEES (Limited by Guarantee) for the year ended 31 March 2024 The Trustees present their annual report and the financial statements for the year ended 31 March 2024. The financial statements have been prepared in accordance wth the accounting policies set out on pages 12 and 13 and comply with the Memorandum and Articles of Association, applicable laws and the requirements of the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Charities Act 2011 and the Companies Act 2006. Structure, Governance and Management Governing document The organisation is a charitable company limited by guarantee, incorporated on 19th December 2008 and registered as a Charity on 26th June 2009. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is govemed under its Articles of Association. In the event of the company being wound up, members are each required to contribute an amount not exceeding £10. Recruitment and appointment of directors The directors of the company are also Charity Trustees for the purposes of Charity law. Under the requirements of the Memorandum and Articles of Association, directors are elected to seNe for a period of three years after which they must be re-elected at the next Annual General Meeting. All directors give their time voluntarily and receive no benefits from the Charity. Due to the nature of the Charity's work, there is particular focus upon the welfare of young children. The directors seek to ensure that the best interests of the charity and ultimately the children served by the charity are appropriately reflected through the diversity of the Trustee body. The more traditional business skills are well represented on the Board. In an effort to maintain this broad skill mix, members of the Board are requested to provide a list of their skills (and update it each year) and in the event of particular skills being lost due to retirement, individuals are approached to offer themselves for election to the Board. In the event that a new memberjoins the Board there is no formal induction process, however there is a checklist of requirements, supplemented with orientation by fellow Trustees. The training requirements of Board members are assessed periodically on a case by case basis, however mandatory training is unifomily undertaken and annualty monitored. Organisational structure The Charity has a Board of Directors which meets monthly throughout the year and is responsible for the strategic direction and policy of the Charity, including the approval of budgets and the exercising of financial controls. At present, the Board has eight members from a variety of professional backgrounds, and each takes a nominal lead role across specific areas e.g.. operational support, comms and marketing, health and safety, maintenance, parent liaison. Mandatory roles are filled by Board members for Chair, Treasurer and safeguarding. A scheme of delegation is in place and day to day responsibility for the provision of the services rests with the Nursery Manager. The finance function is externalty contracted to a firm of accountants. The Nursery Manager is responsible for ensuring that the Charity delivers the seniices specified and that key performance indicators are met. The Nursery Manager has responsibility for the day-to-day operational management of the nursery, individual supervision of the staff team, safeguarding, child protection, and also ensuring that the team continue to develop their skills and working praCtIS in line with good practi. The performance and remuneration of the Nursery Manager is reviewed in the context of certain mutually agreed metrics each year by a sub-committee of the Board. Risk Management The Board reviews on an annual basis the major risks to which the Charity is exposed. Where appropriate, systems or procedures have been established to mitigate the risks the Charity faces. Internal control risks are minimised by the implementation of prOdureS for authorisation of all transactions and projects. produreS are in Pla to ensure compliance with Health and Safety of staff, volunteers, clients and visitors to the nursery. These procedures are periodically reviewed to ensure that they continue to meet the needs of the Charity and are assessed in accordan with EYFS policies and other relevant guidance.
Trustees Annual Report ARC COMMUNITY TRUSTEES (Limited by Guarantee) for the year ended 31 March 2024 During the period April 2023 to March 2024, there has continued to be a risk associated with lower levels of occupancy than pre pandemic years, howeverthere has been a gradual increase on the previous year, which is positive. In addition, and also related to occupancy, tt)e continued challenge fad across the industry regarding attracting qualified staff of high quality has impacted the nursery. Significant focus has been on continued recruitment of staff to meet required ratios, ensure quality of care standards, and to enable additional children to be taken on. In addition, rising cost of living was identified as an ongoing risk for the nursery as this not only increased for non paylindirect costs but also has increased the costs of bank and agency staff. This has been monitored throughout the year, with robust controls on spend and also proactive action taken to reduce costs where possible (e.g. contract renewals). However these factors have impacted the overall financial position in terms of expenditure and reseNes. The financial position is reviewed by Trustees at the monthly Board meetings and discussed with the management team during monthty finance meetings focused on minimising spend and ensuring appropriate financial control. Mission, Purpose and Objectives The Charity reviews the aims, objectives and activities each year. This review looks at what has been achieved and the outcomes of work in the prior period. The review looks at the success of each key activity and the benefits they have brought to those groups of people the Charity is set up to help. The review also helps the Board ensure the aims, objectives and activities remained focused on the Charity's stated purposes. Our Mission To provide accessible, responsive childcare and related SeiceS to the local community (predominantly London, SE1 }. This aim is incorporated in a motto. namely. -Families working together for their own and each otherfs children" Our Charitable Purpose We aim to provide childcare of the highest standard, including affordable and vulnerable places, to families living and working in the local community- Our Objectives The Charity's objectives are" To enhance the development and education of children, principally below statutory school age, by providing childcare and early learning for children and families., To provide activities to enhan parental skills and child development- and To provide advice and assistan to families in relation to the costs of childcare. The Charity recognises that its financial position must be sound and secure and that its activities should be managed with a view to at least breaking even each year. Public benefit The Trustees have referred to the Charity Commission guidance on public benefit in setting the aims and objectives of the Charity and its future plans. Measuring our achievements against the Charity's objectives The Charity has discharged its objectives by pursuing two complementary activities in the year to 31 March 2024. Firstly, the core activity of the Charity is to provide high quality early pre-school education and care through the provision of services at the Arc Nursery. In addition. as a core component of this service provision the Charity provides plaS to children on a substantially subsidised basis. These places are not fixed in number and their allocation to children is determined by the Trustees on the basis of need. The Trustees are satisfied that the Charity performed adequately well during the period under review considering each of their objectives, with a view to focusing on the core objectives of the charity.
Trustees Annual Report ARC COMMUNITY TRUSTEES (Limited by Guarantee) for the year ended 31 March 2024 Review of the year This year has shown an increase in incoming reSoUrS for the Charity. Revenue from restricted and unrestricted SoUrS increased by some £114,389 (2023.. £21,795 decrease). The balance of restricted reserves of the Charity increased by £393 (2023.. £2,800) whereas unrestricted reseNes increased by £38,615 {2023.' £89,273 decrease). Our unrestricted reserves at the end of the financial year were £38,620 {2023. £5). Overall review of the Charity's perforniance The Trustees are reasonably satisfied with the Charity's overall perfomiance during the period under review given the challenging financial circumstances facing the economy more widely post pandemic. Income from charitable activities increased compared to prioryearand occupancy levels achieved were broadly consistent with the Charity's operating targets given the post pandemic period. However there has continued to be significant challenges with recruitment to qualified level 3 practitioner roles, which has impacted the entire industry. This has restricted the ability of the Charity to increase occupancy levels significantly and generate more income to rebuild the financial reserves whilst compensating the steep rise in cost of living. Management and the Trustees have worked hard throughout the year to recruit key roles and to mitigate risks associated with vacancies, preserving early years staffing ratios, and to ensure the safety and well- being of staff and children. Two new Trustees were appointed in summer 2023 which helped to bolster the Board skills, capability and capacity, and overall parent satisfaction remains high, with positive reviews and healthy waiting lists (often generated through word of mouth). Financial Review The Trustees recognise that it has been a challenging financial year for the Charity post pandemic given the increasing costs facing the economy more widely and the ongoing industry issues with recruitment. In particular it has been acknowledged that there were financial challenges in relation to agency spend, recruitment agency costs, slightly lower occupancy than hoped and an ongoing rise in the cost of living. The Treasurer and management team have worked closely to review budgets and take proactive measures to reduce spend where appropriate, especially on contracts. In addition. a strict approvals process has been put in place for use of agency to help minimise any unnecessary spend. This has had a positive impact of significantly reducing overall agency spend. The Charity's financial perfomiance will continue to be largety determined by the mix of the relevant age groups of children attending the Nursery and, crucially, overall occupancy levels throughout the year. Overall average occupancy increased to 66 % (2023: 61 % ) and the fee rates were increased with effect from 1 January 2024, and the terms and conditions reviewed to tighten certain policy aspects pertaining to seasonal fluctuation. There will continue to be an annual review of fees, which has been communicated to parents, taking into account local comparators to ensure competitiveness. Occupancy levels are reviewed on a monthly basis with work ongoing to bring the nursery back to pre-covid occupancy levels, and the Charity has seen demand continue to grow with the number of families living in the Arc's catchment area increasing. However. the Arc has eXperIend significant recruitment challenges (seen industry wide) which has negatively impacted on the ability to increase occupancy to the required levels and fully service the demand. Recruitment strategies are in place to help with recruitment which is the key to enabling fiJrther occupancy growih.
Trustees Annual Report ARC COMMUNITY TRUSTEES (Limited by Guarantee) for the year ended 31 March 2024 Fundraising activities The Charity received the following grants during the year. All restricted grants have been or will be used for the purposes for which they were given. Southwark Council - Restricted grant For'Deprivation funding, Southwark Council - Restricted grant Early Years SENDIEHCP Inclusion Fund £5,003 (2023.. £4, 108) £12.900 (2023." £nil) 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 at least six month's budgeted expenditure. The Trustees consider that reseNes at this level will ensure that, in the event of a significant decline in attendances and therefore fee income, they will be able to continue the Charity's current activities while consideration is given to ways in which additional funds may be raised. Under this policy, the year£nd free reserves tsrget should be no less than £454,581 (2023.. £423,374). For the year ended 31 March 2024, the Charity's free reserves stood at £38,62012023: £5). The Trustees acknowledge that the level of free reserves available to the Charity have significantly declined in recent years and must be rebuilt as a matter of priority- For the year ended 31 March 2024, the Charity's restricted fijnds stood at £4,178 (2023.. £3,785). Investment policy The Charity maintains its banking facilities with C. Hoare & Co., 37 Fleet Street, London, EC4P 4DQ. AII surplus funds are maintained in short and long temi deposits held with its main bankers. Future plans In May 2019, following a review by OFSTED the nursery's rating was amended from Inadequate to Good. The nursery has had an improvement plan in place focusing on practi and procedure which is continually reviewed and updated with input from Trustees and the Local Authority. The nursery has focused on Otsted preparedness during 2023124 to reflect good practi, to test prosses, policies and procedures, and to ensure that standards continue to rise. There will be a continued focus on staff and team development in 2024125. It is recognised that there will be some investment requirementfor infrastructure and physical learning 'aides' in support of providing high quality education into 2024125. In particular, there will be a focus on the outside spaces and maximising these areas, plus more permanent structures to enhance the experience of children and staff. Avenues such as fund raising and donations continue to be explored to supplement fee related income. Trustees, Responsibilities Ststement The Trustees (who are also directors of ARC Community Trustees Limited for the purposes of company law) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally ACpted Accounting Practi). 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 ststements, the Trustees are required to.. Select suitable accounting policies and then apply them consistently., Observe the methods and principles in the Charities SORP., Make judgments and accounting estimates that are reasonable and prudent., Prepare the financial ststements on the going conrn basis unless it is inappropriate to presume that the charitable company will continue in operation.
Trustees Annual Report ARC COMMUNITY TRUSTEES (Limited by Guarantee) for the year ended 31 March 2024 The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The financial statements and this report have been prepared in accordance with current legislation and the statement of recommended practi "Accounting and Reporting by Charities" (January 2019}. These financial statements have been prepared in accordance with the special provisions available to small companies under Part 15 of the Companies Act 2006 and the Financial Reporting Standard 102. 30 Decernber 2024 These accounts were approved by the Board on........................... and signed on their behalf by: Elinor Wilkes Treasurer COMPANY NUMBER: 06777508
Independent Examiner's Report ARC COMMUNITY TRUSTEES (Limited by Guarantee) for the year ended 31 March 2024 Independent Examinerfs Report to the Trustees of Arc Communty Trustees ('the Charity. I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2024. Responsibilities and Basis of Report As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordan with the requirements of the Companies Act 2006 {'the 2006 Act'i. Having satisfied myself that the accounts 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 accounts carried out under section 145 of the Charities Act 2011 {'the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145{5)(b) of the 2011 Act. Independent Examinerfs Statement The company's gross income exceeded £250,000 and l am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants England and Wales (ICAEW). I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe: accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act., or the accounts do not accord with those records., or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair, view which is not a matter considered as part of an independent examination" or the accounts have not been prepared in accordan with the Charities SORP (FRS102}. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. This report is made solely to the Charity's Trustees in accordan with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters l am required to state to them in an Independent Examinerfs Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees for my work or for this report. Hazra Patel ACA Lubbock Fine LLP Chartered Accountants & Statutory Auditors Paternoster House 65 St Paul's Churchyard London EC4M 8AB Date: 09 January 2025
ARC COMMUNITY TRUSTEES (Company limited by guarantee) Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2024 2024 2024 2024 2023 2023 2023 Restricted Unrestricted Total Restricted Unrestricted Total Notes Income from: Donations Charitable activities Grants other trading activities 1.463 779,396 1.463 785,096 19,705 2,093 1,875 684,617 1.875 687,417 4,108 568 5,700 19,705 2,800 4,108 2.093 568 Total income 25,405 782,952 808,357 6,908 687,060 693,968 Expenditure on: Charitable activities 25,012 744.337 769.349 4,108 776,333 780.441 Total charitable expenditure 25.012 744.337 769,349 4,108 776,333 780,441 Transfers between funds 12 Net income I lexpenditurel for the year 393 38,615 39,008 2,800 {89,2731 186.4731 Total funds broughtfobward 3,785 3.790 985 89,278 90.263 Funds at the end ofthe year 12 4.178 38.620 42.798 3.785 3.790 There were no recognised gains or losses other than the surplus ported for the financial year. The net rnovements in funds for the year derived from the charitys continuing activities. The notes on pages 12 to 19 fomi a part of these financial slatements.
ARC COMMUNITY TRUSTEES (Company limited by guarantee) Balance Sheet As at 31 March 2024 2024 2023 Notes Fixed assets Tangible fixed assets 8,756 7,093 Current assets Debtors Cash at bank and in hand 51,724 113,799 42,814 103,322 165,523 146.136 Creditors: amounts falling due within one year 131,481 149,439 Net current (liabilities) l assets 34,042 (3,303) Net assets 12 42,798 3.790 Funds 12 Restricted funds 4,178 3,785 Unrestricted funds 38,620 Total funds 42,798 3,790 The notes on pages 12 to 19 fomi a part of these financial statements. For the year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. • The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476. The directors ackn¢edge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and in accordance with the Financial Reporting Standard 102 (FRS 102). 30 December 2024 The financial statements were approved by the Board and authorised for distribuiion on and signed on its behalf by= Elinor Wilkes Treasurer Company number 06777508 10
ARC COMMUNITY TRUSTEES (Company limited by guarantee) Cash Flow Statement for the ear ended 31 March 2024 2024 2024 2023 2023 Notes Net cash (used) I provided by operating activities 13 17,768 52,292 Cash flo from investing activities: Cost of purchasing iangible fixed assets Proceeds from disposal of tangible fixed assets Bank interest receivable (9.384) {2,798} 140 2,093 Net cash used by investing activities 17,291) (2,0901 Change in cash and cash equivalents in the reporting period 10,477 54,382 Cash and cash equivalenls at the beginning of the reporting period 103.322 157,704 Cash and cash equivalents at the end of the reporting period 113,799 103,322
ARC COMMUNITY TRUSTEES {Company limiled by guaranlee) Notes to the financial statements for the year ended 31 March 2024 Accounting policies a) These financial slatemenls have been prepared on a going conrn basis, under the hislorical cosl convention and in accordance with the Finanaal Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit company for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS 102 Chartties SORP). the Companies Act 20C6 and Ihe Charities Act2011. The Iruslees have assessed whether the use ofthe going conrn basis is appropriale and have considered possible events or conditions that might cast significant doubt on Ihe ability of the charity to continue as a going conrn. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Iruslees have considered the charity's forecasts and projections. After making enquiries the truslees have conduded Ihal there is a reasonable expectation thal the charity has adequate resources to continue in operational existen for the foreseeable future. The charity therefore continues to adopt the going conrn basis in preparing its financial statements. The following principal accounting policies have been adopted in preparing the financial statements. b) Incoming resources include the total amount of grants. voluntary income and nursery fees receivable and are recognised when there is entidement to the funds, the receipt is probable and the amount can be measured reliably. Revenue and capital grants are accounted for gross when nolificalion is received. Where the grants speafy the lime period they relate to, they are recognised as income in that periLNI. Other grants are recognised as income when received. c) ReSoUrS expended are recognised On there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefit will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The Charity is not registered for VAT and its expenses are therefore inclusive of VAT which cannot be recovered. d) Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the cenlral function, is apportioned on Ihe following basis which is an estimale. based on staff time. of the amount atlributable lo each activity- Incoming resources from charitable activities Governan and support 90.0% 10.0Y. e) Govemance and support costs include the management of the Charity's assets, organisation and management. and compliance with constitutional and statutory requirements. The only govemance costs included in the accounts relate to audit fees as disclosed in note 4. 12
ARC COMMUNITY TRUSTEES {Company limiled by guaranlee) Notes to the financial statements for the year ended 31 March 2024 D Individual fixed assets costing £100 or more are capilalised at cost and are depreciated over their estimated useful economic life. The depreciation rates in use are as follows.. Office equipment 25 % straight line Fixtures and fittings 25 % straight line Leasehold improvements Over the lease term Leasehold improvements (additional) Over 3 years g) Unrestricted funds comprise accurnulated surpluses of general funds and these are available for use at the discretion of the Trustees in the furtheran of the general charitable objectives of the Charity. h) Restricted funds are those that can only be used for restricted purposes vAthin the objects of the Charity. Reslrictions arise when spe¢ified by donors or when funds are raised for particular restricted purposes. i) Trade and other debtors are recognised at the setllement amount due after any discounl offered. Prepayments are valued at the amount prepaid net of any discounts due. j) Cash al bank and cash in hand indude funds available to the Charity immediately in current and deposit accounls and petty cash. k) Creditors and provisions are recognised where the charity has a present obligation resulting from a past event Ihat will probably resull in the transfer of funds lo a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement arnount after allowing for any discounts due. l) The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial inslruments are initially rec(KJnised at transaction value and subsequently measured at their amortised cost. m) ARC Community Trustees provides all employees access to a designated stakeholder pension scheme. Contributions made by the employee are matched by the company up to a maximum of 6/0 of the employee's annual salary. n) Rentals applicable to operating leases where substantialty all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. 13
ARC COMMUNITY TRUSTEES Icompany limited by guarantee) Notes to the financial statsments for the year ended 31 March 2024 2. Total Income 2024 2024 iknrestrlcted Restrlcted 2024 2023 Total Unrestrtcted 2023 ReSt£d 2023 Total Donations Parent donation Trustees donation Norton Rose Charitable Foundation Fulbn"ght donat 263 1.200 263 1.200 470 405 1,000 470 405 1,000 Charitable activities Nursery school fees Wothplace Nursery Scheme Cofttributions 779,396 TT9,396 5.700 684,617 684,617 2,800 5,71M) 2,800 Grants Southwath Council deprivation funding Southwath Council Eèrty Years SENDIF fuftdirTrg Soulhwark Council Earty Years EHCP fvnding Southwark Council Earty Years Supplement8ry Grant 5,003 4,112 8.788 1,802 5,003 4,112 8.788 1.802 4,108 4,108 Othar trading aetivitiès Bank Inte51 receivable 2.093 2.093 568 568 Total Income 782,952 25,405 808,357 687,(0 6,908 693,968 During the year, the nursery received 'Deprivab"on funding. in respect of thildren aged under five years of age, who on the relevant headcount day. weie eligible to receive free nursery eduGab"on at the thartys main nursery setting. The eligibility criterra are sel by Southwark Counal and the grant is based on infonnation submitted to the Counal. The charity provided free earty years education to all such eligible pupils. Totsl charitsble expenditurg Expenditure on charilable a¢ti¥itie unrestric Reslrid Support and 90vemanc* 2024 Total 2023 Totsl Direct costs Staff costs (See Note 51 Nursery occupanry cgsls Other operating charges Depreuation (See Note 71 45,434 472,515 141.002 41.073 5,2 22,588 68.022 480,402 141.002 72.203 7.720 167,026 399,888 136.549 71,947 5,031 7,887 31.130 2,424 Totsl Trsources expendgd 705.320 25.012 39.017 769.349 780.441 EXnditur0 on charitablè activitiès Unrestricted Restricted Support and govemance 2023 Totsl Direct costs Staff costs (See Note 51 Nursery occupancy costs Other operating charges Depreaation (See Note 41 162.918 393.585 136.549 39,497 5,031 4.108 167.026 399.888 136.549 71,947 5,031 6,303 32,450 Total resources expended 737,580 4,108 38,753 780,441 14
ARC COMMUNITY TRUSTEES Icompany limited by guarantee) Notes to the financial statsments for the year ended 31 March 2024 4. Net outgolng resources for the year This is stated after charging". 2024 2023 Depreuation Independent examiner fee". Current year Operating lease payments 7,720 3,000 104,536 5,031 3,000 103,634 S. Staff costs and numbers Staff costs were as follows". 2024 2023 Salaries and wages Social security costs Pension contributions 438,316 29.276 12,810 367,427 23,357 9.104 480,402 399,888 None of the employees eamed over £60,000 during the year. The average eeklY number of employees analysed by 8th"ty was as follows". H•adeount Full-tim• m•thod •quival•nt 2024 2024 No. No. 20 16 Full-lirne equivalent 2023 No. 14 Teaching staff Govemance and support 23 19 17 A number of volunteers assist with the activities of the Charity. As Ihese volunteers are not employed by Ihe charity, they are not included in the above note. Kèy managamènt parsonnal and Trust8•s No trustee received any remuneration in the Current year or the previous year. Key rnanagernent personnel received remuneration of £44,75712023.' £39,859) induding employers national Insuran contributions {NICI and pension. During the year Trustees receiveil Teimbuisement of expenses amounting to £95512023.. £2.993}.
ARC COMMUNITY TRUSTEES Icompany limited by guarantee) Notes to the financial statements for the year ended 31 March 2024 Taxation The Charity is exempt from cortuation tsx as all its inCMe is charitatle and is ap1 for charitsNe purtM)ses. Tangible fixed assets Leasehold Leasehold lrnprovements Fixiure5 & ofrice lrnprovements Addonal Fittings Equipmet)t Totsl COST At 1 April 2023 Adijilions in the year Diswsals in the year 248,297 23,957 4.104 41.200 2.836 10,801 324,255 At 31 March 2024 248.297 28.061 44.036 13.245 333,639 DEPRECIATION At 1 April 2023 Charge lor the year On dISsaIS 248,297 20.514 4.811 40.550 952 7.801 1,958 317,162 7,721 At 31 March 2024 248.297 25.325 41.502 9,759 324,883 NET BOOK VALUE At 31 March 2024 2,736 2,534 3,486 8.756 At 31 March 2023 3,443 650 3,000 7.093 I tangible fixed assets are Ljsed f[ dire(X tharitatAe purFX)ses. 16
ARC COMMUNITY TRUSTEES Icompany limited by guarantee) Notes to the financial statements for the year ended 31 March 2024 Debtors 2024 2023 Trade debtors Prepayrnents and accnjed incwe Other debtors 4,874 46.540 310 2,720 37.463 2,631 51.724 42.814 Creditors '. amounts falling due within on• yr 2024 2023 Trade creditors Other CrltOrS incjuding taxation and swal secunty Accruals 16,545 102,429 12,507 50.432 87.564 11.443 131,481 149,439 10. Anatysis of net assets between funds- current year Unrestricted funds (General & Designated) Restricted fvjnds Total funds Tangible fixed assets Net current assets 8.756 29.864 8,7S6 34,042 4.178 Net assets at 31 March 2024 4.178 38.620 42,798 Unrestricted funds (General & Designated) Restricted fvjnds Total funds Analysis of net assets between funds- prior year Tangible fixed assets Net current assets 7.093 17.0881 7,093 13,3031 3.785 Net assets at 31 March 2023 3.785 3,790 11. Financial instruments 2024 2023 Financial Assets measu1 at amortised cost 14,278 5,813 Financial Liabilits'es measured at amortised cost 124,858 142,111 Financial Assets rneasured at amortised cost comwse oftraje debt$, other debtors and accrLEd ircome. Financial Liabilits'es measured at amorts.sed cost MpriSe of trade cr&Jitus, other creditus and accruals. 17
ARC COMMUNITY TRUSTEES Icompany limited by guarantee) Notes to the financial statements for the year ended 31 March 2024 12. Movements in funds Resources exFEnded linduding losses) Transfer betsveen fLJnds At31 March 2024 At 1 April 2023 Inc4)ming re50UI Restricted funds Southwark Counol- Dery1vatiC fvndiTrJ-1 Southwark Council- Eady Years SENDIFIEHCP funding'2 Southwark Counal- Earty Years Supplernentary Giant"3 Workplace Nursery Scheme Contribubons"4 5,003 12.900 1.802 5,700 15.0031 112 9001 11.8021 15.3071 3.785 4,178 Total restricted funds 3.785 25.405 125.0121 4,178 General fund 782,952 1744.3371 1744.3371 38,620 Total unrestricted funds 782,952 38,620 Total funds 3.790 808,357 1769.3491 42,798 Resou$ extEnded Iinduding losses) Transfer between funds At31 March 2023 At 1 April 2022 Incoming resour$ Restricted funds Southwark Counal- Deprivabon fvnding .1 Southwark Counal- Earfy Years SENDIFEHCP fundirwJ"2 Southwark Counol- Eady Years Supplementary Grant"3 workpla Nursery Scheme Contributyons'4 4.108 14.1081 985 2.800 3,785 Total restricted funds 985 6,908 14,1081 3,785 General fund 89.278 687,060 1776,3331 Total UnStriCted funds 89.278 687,060 1716.3331 Total funds 90.263 693,968 1780.4411 3,790 .1. Addth0na1fvndff prowded by SouifTh¥ark Ctrjnol to swort from dwNed .2. Funding prowded by Soulmvark C0Ci1 to SUPFX)rt Chin special edu¢alK)n* d$. .3. Addthonal eartyyears entilmentftIg by SoUrk c(x1 to suFyKt ptuwbptS. .4. CtrUOn$ made bYWOrk8¢ts Nursery Schemes. 13. Reconciliation of net expenditure to net cash provided by operating activities 2024 2023 Net expenditure DepratIOn of tangit4e assets Loss on disposal of tangible assets IlncreasellDecrease in debtor5 (Decreaselflncrease in crjitorS Bank interest reIvae Net rash IOLrtnowlnnflow from otEratirvJ actimties 39,008 7,720 186,4731 5,031 109 1.096 28,513 15681 152.2921 18,9101 117,9571 2,0931 17,768 18
ARC COMMUNITY TRUSTEES Icompany limited by guarantee) Notes to the financial statements for the year ended 31 March 2024 14. Operating lease commitments At 31 March 2024. the tharity had total minimum lease payrnents under non-G4ncellable otErating leases as set out below 2024 2023 Within 1 year Behveen 2 to 5 years 101,909 300,000 104.511 401,909 15. Related parties During the year. nursery fees paid by the Twstees total1 £40.971 12023.. £34.8101. During the year, handyman ServIS provided by the parb)er of a Trustee £1.71412023." £nill 16. Company limited by guarantee Every trustee promises. If the Charity is dissdved %thile he or Is a mernber. or within Iwdve months after he Dr ceases to a rnembei. to contribute such sum (not exceeding £101 as may dernanded of him or her towards the payment of the debts and liabilib.es of the Charity incurr&J tefore he or she ceases to it a member. and of the costs, charges and expenses of winding up. and the adjustment of rights of Ihe contributories among themsdves. 19