ARC COMMUNITY TRUSTEES
(Company limited by guarantee)
Report and Financial Statements for the year ended 31 March 2023
Charity number 1130383 Company number 06777508
ARC COMMUNITY TRUSTEES
(Limited by Guarantee) for the year ended 31 March 2023
Reference and Administrative Information ..................................................................................................... 2
Annual Report of the Board ........................................................................................................................... 3 Independent Examiners’ Report ................................................................................................................... 8 Statement of Financial Activities .................................................................................................................... 9 Balance Sheet .............................................................................................................................................. 10
Cash Flow Statement ................................................................................................................................... 11 Notes to the Financial Statements ............................................................................................................... 12
ARC COMMUNITY TRUSTEES
(Limited by Guarantee)
for the year ended 31 March 2023
Administrative information
Trustees
James Rickard (Chairperson) Elinor Wilkes (Treasurer) Thomas Wood Gillian Walley Yasmin Saleh (appointed on 1 June 2023) Jana How (appointed on 1 August 2023) Holly Marshall (resigned 30 September 2023) Susanne Traudt (resigned 27 January 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, SE1 3YD
2
Trustees Annual Report ARC COMMUNITY TRUSTEES
for the year ended 31 March 2023
(Limited by Guarantee)
The Trustees present their annual report and the financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with 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 19[th] December 2008 and registered as a Charity on 26[th] June 2009. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed 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 serve 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 member joins 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 uniformly undertaken and annually 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 six members from a variety of professional backgrounds, and each takes a nominal lead role across specific areas e.g., operational support, comms and marketing, 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 externally contracted to a firm of accountants. The Nursery Manager is responsible for ensuring that the Charity delivers the services 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 practices in line with good practice. 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 procedures for authorisation of all transactions and projects. Procedures are in place 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 accordance with EYFS policies and other relevant guidance.
3
Trustees Annual Report ARC COMMUNITY TRUSTEES
(Limited by Guarantee)
for the year ended 31 March 2023
Whilst the direct impact of COVID-19 has been significantly less during the period April 2022 to March 23 (lower levels of sickness/ no closures) potential risks associated with continued lower than pre pandemic levels of occupancy were discussed and tracked throughout the year. Significant focus has been on recruitment of staff to meet required ratios and enable additional children to be taken on.
In addition, rising cost of living was identified as a risk for the nursery as this not only increased for non pay/indirect costs but also has increased the costs of bank and agency staff. This has been monitored throughout the year but with limited ability to influence, and therefore has impacted the overall financial position in terms of expenditure and reserves.
The financial position is reviewed by Trustees at the monthly Board meetings and discussed with the management team during monthly 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 services to the local community (predominantly London, SE1). This aim is incorporated in a motto, namely, “Families working together for their own and each other’s 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 enhance parental skills and child development; and
-
To provide advice and assistance 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 2023. 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 places 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.
4
Trustees Annual Report ARC COMMUNITY TRUSTEES
(Limited by Guarantee)
for the year ended 31 March 2023
Review of the year
This year has shown a decrease in incoming resources for the Charity however expenditure was significantly higher than anticipated due to an increased agency spend (vacancies and sickness). Revenue from restricted and unrestricted sources decreased by some £21,795 (2022: £42,215 increase). The balance of restricted reserves of the Charity increased by £2,800 (2022: £943) whereas unrestricted reserves decreased by £89,273 (2022: £10,771 increase). Our unrestricted reserves at the end of the financial year were £5 (2022: £89,278).
Overall review of the Charity’s performance
The Trustees are reasonably satisfied with the Charity’s overall performance during the period under review given the challenging financial circumstances facing the economy more widely post pandemic. Income from charitable activities decreased however occupancy levels achieved were broadly consistent with the Charity’s operating targets given the post pandemic period. The impact of COVID-19 has continued to lessen in terms of high levels of sickness and possible closures. 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 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 wellbeing 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, slightly lower occupancy than hoped and an ongoing rise in the cost of living. In addition, the necessity to use agency staff and also recruitment agencies, both with associated higher costs has impacted negatively on pay budgets. A strict approvals process has been put in place for use of agency to help minimise any unnecessary spend and monthly finance meetings established to review the budgets and continue to improve controls.
The Charity’s financial performance will continue to be largely 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 decreased to 61% (2022: 68%) however the fee rates were increased with effect from 1 January 2023, 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 experienced 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 further occupancy growth.
5
Trustees Annual Report ARC COMMUNITY TRUSTEES
(Limited by Guarantee)
for the year ended 31 March 2023
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’ £4,108 (2022: £4,783) Southwark Council – Restricted grant Early Years SEND Inclusion Fund £nil (2022: £198)
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 reserves 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-end free reserves target should be no less than £423,374 (2022: £377,036). For the year ended 31 March 2023, the Charity’s free reserves stood at £5 (2022: £89,278). 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 2023, the Charity’s restricted funds stood at £3,785 (2022: £985).
Investment policy
The Charity maintains its banking facilities with C. Hoare & Co., 37 Fleet Street, London, EC4P 4DQ. All surplus funds are maintained in short and long term 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 practice and procedure which is continually reviewed and updated with input from Trustees and the Local Authority.
It is recognised that there will be some investment requirement for infrastructure and physical learning ‘aides’ in support of providing high quality education into 2023/24. Avenues such as fund raising and donations continue to be explored to supplement fee related income.
Trustees’ Responsibilities Statement
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 Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
-
Select suitable accounting policies and then apply them consistently;
-
Observe the methods and principles in the Charities SORP;
-
Make judgments and accounting estimates that are reasonable and prudent;
-
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that 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.
6
Trustees Annual Report ARC COMMUNITY TRUSTEES
(Limited by Guarantee)
for the year ended 31 March 2023
The financial statements and this report have been prepared in accordance with current legislation and the statement of recommended practice "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.
18 December 2023 18 December 2023 These accounts were approved by the Board on........................... and signed on their behalf by:
.............................................................. Elinor Wilkes Treasurer
COMPANY NUMBER: 06777508
7
Independent Examiner’s Report ARC COMMUNITY TRUSTEES
(Limited by Guarantee)
for the year ended 31 March 2023
Independent Examiner's Report to the Trustees of Arc Community Trustees ('the Charity')
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2023.
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 accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
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 Examiner's Statement
The company’s gross income exceeded £250,000 and I 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 accordance 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 accordance 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 I am required to state to them in an Independent Examiner's 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:
8
ARC COMMUNITY TRUSTEES
(Company limited by guarantee) Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2023
| 2023 Restricted Notes £ Income from: Donations - Charitable activities 2,800 Grants 4,108 Other trading activities - Total income 2 6,908 Expenditure on: Charitable activities 4,108 Total charitable expenditure 3 4,108 Transfers between funds 12 - 2,800 985 Funds at the end of the year 12 3,785 Total funds brought forward Net income / (expenditure) for the year |
2023 Restricted Notes £ Income from: Donations - Charitable activities 2,800 Grants 4,108 Other trading activities - Total income 2 6,908 Expenditure on: Charitable activities 4,108 Total charitable expenditure 3 4,108 Transfers between funds 12 - 2,800 985 Funds at the end of the year 12 3,785 Total funds brought forward Net income / (expenditure) for the year |
2023 Unrestricted £ 1,875 684,617 - 568 |
2023 Total £ 1,875 687,417 4,108 568 693,968 780,441 780,441 - (86,473) 90,263 3,790 |
2022 Restricted £ - 1,100 4,981 - |
2022 Unrestricted £ - 706,889 2,408 385 |
2022 Total £ - 707,989 7,389 385 |
|---|---|---|---|---|---|---|
| 6,908 | 687,060 | 6,081 | 709,682 | 715,763 | ||
| 4,108 | 776,333 | 5,155 | 698,894 | 704,049 | ||
| 4,108 | 776,333 | 5,155 | 698,894 | 704,049 | ||
| - | - | 17 | (17) | - | ||
| 2,800 985 |
(89,273) 89,278 |
943 42 |
10,771 78,507 |
11,714 78,549 |
||
| 3,785 | 5 | 985 | 89,278 | 90,263 |
There were no recognised gains or losses other than the surplus reported for the financial year.
The net movements in funds for the year derived from the charity's continuing activities.
9
ARC COMMUNITY TRUSTEES
(Company limited by guarantee)
Balance Sheet As at 31 March 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | ||
| Fixed assets | |||||
| Tangible fixed assets | 7 | 7,093 | 9,575 | ||
| Current assets | |||||
| Debtors | 8 | 42,814 | 43,910 | ||
| Cash at bank and in hand | 103,322 | 157,704 | |||
| 146,136 | 201,614 | ||||
| Creditors: amounts falling due within one year | 9 | 149,439 | 120,926 | ||
| Net current (liabilities) / assets | (3,303) | 80,688 | |||
| Net assets | 12 | 3,790 | 90,263 | ||
| Funds | 12 | - | |||
| Restricted funds | 3,785 | 985 | |||
| Unrestricted funds | 5 | 89,278 | |||
| Total funds | 3,790 | 90,263 |
The notes on pages 12 to 19 form a part of these financial statements.
For the year ending 31 March 2023 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 acknowledge 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).
18 December 2023 The financial statements were approved by the Board and authorised for distribution 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 year ended 31 March 2023
| Notes Net cash (used) / provided by operating activities 13 Cash flows from investing activities: Cost of purchasing tangible fixed assets Proceeds from disposal of tangible fixed assets Bank interest receivable Net cash used by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2023 £ (2,798) 140 568 |
2023 £ (52,292) (2,090) (54,382) 157,704 103,322 |
2022 £ (13,125) - 385 |
2022 £ 17,612 |
|---|---|---|---|---|
| (12,740) 4,872 |
||||
| 152,832 | ||||
| 157,704 |
11
ARC COMMUNITY TRUSTEES
(Company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
1. Accounting policies
- a) These financial statements have been prepared on a going concern basis, under the historical cost convention and in accordance with the Financial 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 lreland (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. 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 trustees have considered the charity's forecasts and projections. After making enquiries the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern 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 entitlement to the funds, the receipt is probable and the amount can be measured reliably. Revenue and capital grants are accounted for gross when notification is received. Where the grants specify the time period they relate to, they are recognised as income in that period. Other grants are recognised as income when received.
-
c) Resources expended are 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 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 central function, is apportioned on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.
-
Incoming resources from charitable activities 90.0% Governance and support 10.0%
-
e) Governance and support costs include the management of the Charity's assets, organisation and management, and compliance with constitutional and statutory requirements. The only governance costs included in the accounts relate to audit fees as disclosed in note 4.
12
ARC COMMUNITY TRUSTEES
(Company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
-
f) Individual fixed assets costing £100 or more are capitalised 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 accumulated surpluses of general funds and these are available for use at the discretion of the Trustees in the furtherance of the general charitable objectives of the Charity.
-
h) Restricted funds are those that can only be used for restricted purposes within the objects of the Charity. Restrictions arise when specified by donors or when funds are raised for particular restricted purposes.
-
i) Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any discounts due.
-
j) Cash at bank and cash in hand include funds available to the Charity immediately in current and deposit accounts and petty cash.
-
k) Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to 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 amount after allowing for any discounts due.
-
l) The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised 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% of the employee's annual salary.
-
n) Rentals applicable to operating leases where substantially 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
(Company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
2. Total income
| Total income | ||||||
|---|---|---|---|---|---|---|
| Donations Parent donation Trustees donation Norton Rose Charitable Foundation Fulbright donation Charitable activities Nursery school fees Workplace Nursery Scheme Contributions Grants Southwark Council deprivation funding Southwark Council Early Years Pupil Premium Southwark Council Early Years SENDIF funding COVID-19 Furlough grant Other trading activities Bank interest receivable Total income |
2023 Unrestricted £ |
2023 Restricted £ |
2023 Total £ |
2022 Unrestricted £ |
2022 Restricted £ |
2022 Total £ |
| 470 405 1,000 684,617 - - - - - 568 |
- - - - 2,800 4,108 - - - - |
470 405 1,000 684,617 2,800 4,108 - - - 568 |
- - - 706,889 - - - - 2,408 385 |
- - - - 1,100 4,783 - 198 - - |
- - - 706,889 1,100 4,783 - 198 2,408 385 |
|
| 687,060 | 6,908 | 693,968 | 709,682 | 6,081 | 715,763 |
During the year, the nursery received 'Deprivation funding' in respect of children aged under five years of age, who on the relevant headcount day, were eligible to receive free nursery education at the charity's main nursery setting. The eligibility criteria are set by Southwark Council and the grant is based on information submitted to the Council. The charity provided free early years education to all such eligible pupils.
3. Total charitable expenditure
Expenditure on charitable activities
| Staff costs (See Note 5) Nursery occupancy costs Other operating charges Depreciation (See Note 7) Total resources expended Direct costs |
Unrestricted Restricted £ £ |
Unrestricted Restricted £ £ |
Support and governance £ |
2023 Total £ |
2022 Total £ |
|---|---|---|---|---|---|
| 162,918 393,585 136,549 39,497 5,031 |
4,108 - - - - |
- 6,303 - 32,450 - |
167,026 399,888 136,549 71,947 5,031 |
108,275 400,753 123,894 66,616 4,511 |
|
| 737,580 4,108 |
38,753 | 780,441 | 704,049 | ||
Total resources expended
Expenditure on charitable activities
| Staff costs (See Note 5) Nursery occupancy costs Other operating charges Depreciation (See Note 4) Total resources expended Direct costs |
Unrestricted Restricted £ £ |
Unrestricted Restricted £ £ |
Support and governance £ |
2022 Total £ |
|---|---|---|---|---|
| 103,235 394,294 123,779 32,771 4,511 |
5,040 - 115 - - |
- 6,459 - 33,845 - |
108,275 400,753 123,894 66,616 4,511 |
|
| 658,590 5,155 |
40,304 | 704,049 | ||
Total resources expended
14
ARC COMMUNITY TRUSTEES
(Company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
4. Net outgoing resources for the year
This is stated after charging:
| Depreciation Independent examiner fee: Current year Auditors' remuneration: Prior year Operating lease payments |
2023 £ 5,031 3,000 - 103,634 |
2022 £ 4,511 - 6,600 103,634 |
|---|---|---|
5. Staff costs and numbers
Staff costs were as follows:
| Staff costs were as follows: | ||
|---|---|---|
| Salaries and wages Social security costs Pension contributions |
2023 £ 367,427 23,357 9,104 |
2022 £ 370,682 20,866 9,205 |
| 399,888 | 400,753 |
None of the employees earned over £60,000 during the year.
The average weekly number of employees analysed by activity was as follows:
| Teaching staff Governance and support |
Headcount method 2023 No. 19 4 |
Full-time equivalent 2023 No. 14 3 |
Full-time equivalent 2022 No. 16 3 |
|---|---|---|---|
| 23 | 17 | 19 |
A number of volunteers assist with the activities of the Charity. As these volunteers are not employed by the charity, they are not included in the above note.
Key management personnel and Trustees
No trustee received any remuneration in the current year or the previous year. Key management personnel received remuneration of £39,859 (2022: £48,664) including employers national insurance contributions (NIC) and pension.
During the year Trustees received reimbursement of expenses amounting to £2,993 (2022: £186).
15
ARC COMMUNITY TRUSTEES
(Company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
6. Taxation
The Charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
7. Tangible fixed assets
| COST Additions in the year Disposals in the year DEPRECIATION Charge for the year On disposals NET BOOK VALUE At 31 March 2023 At 31 March 2023 At 1 April 2022 At 1 April 2022 At 31 March 2023 At 31 March 2022 |
Leasehold Improvements £ 248,297 - - |
Leasehold Improvements Additional £ 23,957 - - |
Fixtures & Fittings £ 40,386 814 - |
Office Equipment £ 21,961 1,984 (13,144) |
Total £ 334,601 2,798 (13,144) |
|---|---|---|---|---|---|
| 248,297 | 23,957 | 41,200 | 10,801 | 324,255 | |
| 248,297 - - |
17,073 3,441 - |
40,307 243 - |
19,349 1,347 (12,895) |
325,026 5,031 (12,895) |
|
| 248,297 | 20,514 | 40,550 | 7,801 | 317,162 | |
| - | 3,443 | 650 | 3,000 | 7,093 | |
| - | 6,884 | 79 | 2,612 | 9,575 |
All tangible fixed assets are used for direct charitable purposes.
16
ARC COMMUNITY TRUSTEES
(Company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
8. Debtors
| Trade debtors Creditors : amounts falling due within one year Trade creditors Accruals Other creditors including taxation and social security Other debtors Prepayments and accrued income |
2023 £ 2,720 37,463 2,631 |
2022 £ 3,325 38,030 2,555 |
|---|---|---|
| 42,814 | 43,910 | |
| 2023 £ 50,432 87,564 11,443 |
2022 £ 20,328 83,986 16,612 |
|
| 149,439 | 120,926 |
9. Creditors : amounts falling due within one year
10. Analysis of net assets between funds - current year
| 10. Analysis of net assets between funds - current year | ||
|---|---|---|
| Restricted funds Unrestricted funds (General & Designated) £ £ Tangible fixed assets - 7,093 Net current assets 3,785 (7,088) 3,785 5 Analysis of net assets between funds - prior year Restricted funds Unrestricted funds (General & Designated) £ £ Tangible fixed assets - 9,575 Net current assets 985 79,703 985 89,278 11. Financial instruments 2023 £ Financial Assets measured at amortised cost 5,813 Financial Liabilities measured at amortised cost 142,111 Financial Assets measured at amortised cost comprise of trade debtors, other debtors and accrued income. Net assets at 31 March 2022 Net assets at 31 March 2023 |
Unrestricted funds (General & Designated) £ 7,093 (7,088) |
Total funds £ 7,093 (3,303) |
| 5 | 3,790 | |
| Unrestricted funds (General & Designated) £ 9,575 79,703 |
Total funds £ 9,575 80,688 |
|
| 89,278 | 90,263 | |
| 2023 £ 5,813 |
2022 £ 6,370 |
|
| 142,111 | 115,988 | |
Financial Liabilities measured at amortised cost comprise of trade creditors, other creditors and accruals.
17
ARC COMMUNITY TRUSTEES
(Company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
12. Movements in funds
| Movements in funds | |||||
|---|---|---|---|---|---|
| Restricted funds Southwark Council - Deprivation funding 1 Southwark Council - Early Years SENDIF funding 2 Southwark Council - EYPP funding 3 Workplace Nursery Scheme Contributions4 Total restricted funds Total unrestricted funds Total funds Restricted funds Southwark Council - Deprivation funding 1 Southwark Council - Early Years SENDIF funding 2 Southwark Council - EYPP funding 3 Workplace Nursery Scheme Contributions4 Total restricted funds Total unrestricted funds Total funds General fund General fund |
At 1 April 2022 £ - - - 985 |
Incoming resources £ 4,108 - - 2,800 |
Resources expended (including losses) £ (4,108) - - - |
Transfer between funds £ - - - - |
At 31 March 2023 £ - - - 3,785 |
| 985 | 6,908 | (4,108) | - | 3,785 | |
| 89,278 | 687,060 | (776,333) | - | 5 | |
| 89,278 | 687,060 | (776,333) | - | 5 | |
| 90,263 | 693,968 | (780,441) | - | 3,790 | |
| At 1 April 2021 £ - 42 - |
Incoming resources £ 4,783 198 - 1,100 |
Resources expended (including losses) £ (4,783) (257) - (115) |
Transfer between funds £ - 17 - - |
At 31 March 2022 £ - - - 985 |
|
| 42 | 6,081 | (5,155) | 17 | 985 | |
| 78,507 | 709,682 | (698,894) | (17) | 89,278 | |
| 78,507 | 709,682 | (698,894) | (17) | 89,278 | |
| 78,549 | 715,763 | (704,049) | - | 90,263 |
-
*1. Additional funding provided by Southwark Council to support children from deprived families.
-
*2. Funding provided by Southwark Council to support children with special educational needs.
-
*3. Funding provided by Southwark Council to support educational development of 3-4 years old children from deprived backgrounds.
-
*4. Contributions made by Workplace Nursery Schemes.
| 13. Reconciliation of net expenditure to net cash provided by operating activities Net expenditure Depreciation of tangible assets Loss on disposal of tangible assets Decrease/(Increase) in debtors Increase/(Decrease) in creditors Bank interest receivable Net cash (Outflow)/Inflow from operating activities |
2023 £ (86,473) 5,031 109 1,096 28,513 (568) |
2022 £ 11,714 4,511 184 (7,440) 9,028 (385) |
|---|---|---|
| (52,292) | 17,612 |
18
ARC COMMUNITY TRUSTEES
(Company limited by guarantee)
Notes to the financial statements for the year ended 31 March 2023
14. Operating lease commitments
At 31 March 2023, the charity had total minimum lease payments under non-cancellable operating leases as set out below:
| Expiring: Within 1 year Between 2 to 5 years |
2023 £ 104,511 401,909 |
2022 £ 103,634 105,427 |
|---|---|---|
15. Related parties
During the year, nursery fees paid by the Trustees totalled £34,810 (2022: £41,989).
16. Company limited by guarantee
Every trustee promises, if the Charity is dissolved while he or she is a member, or within twelve months after he or she ceases to be a member, to contribute such sum (not exceeding £10) as may be demanded of him or her towards the payment of the debts and liabilities of the Charity incurred before he or she ceases to be a member, and of the costs, charges and expenses of winding up, and the adjustment of the rights of the contributories among themselves.
19