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← Wakoos Centre4children Ltd

2024-03-31-accounts

WAKOOS CENTRE4CHILDREN LTD.

Trustee’s Report 2023/2024

WAKOOS Centre4Children Ltd. is a charitable company that operates across two main leased nursery sites in West Sussex. A third smaller site is leased on a short-term basis at certain times of the day to provide additional capacity for our Billingshurst out-of-school provision.

Each site is registered with OFSTED and runs a breakfast club, day nursery, afterschool club and holiday club; providing flexible, affordable childcare for children aged 3 months to 11 years old.

Charity registration number: 1137968

Company registration number: 7180968

Registered office: Wakoos Centre4Children Ltd., Station Road, Billingshurst, RH14 9RY

Banker: Barclays, 2 Carfax, Horsham, RH12 1DN

Independent Examiner: Galloways Chartered Accountants, 30 New Road, Brighton, East Sussex, BN1 1BN

Objectives and Aims

WAKOOS Centre4Children Ltd. (‘Wakoos’, ‘the Charity’) is a not-for-profit organisation which invests in staff and resources to benefit the delivery of quality childcare for the local area. We aim to offer more affordable and flexible childcare in comparison with other local commercial childcare providers.

The Charity, its staff and trustees consider Wakoos to be a vital part of the local community and are committed to both continuing and improving our childcare provision whenever possible. Surveys are also sent out to staff and parents/carers to gain feedback and help achieve this objective. We want Wakoos to be an enjoyable, rewarding place to work and as well as providing a vital childcare service, and, in accordance with the EYFS statutory framework, our nurseries also continue to offer practical early years support and advice to families wherever possible.

Our main aims are to:

Diversity in Childcare

Wakoos is fully inclusive and our childcare provision is available to all children whatever their race, culture, religion, means or ability. We continue to accept children who are eligible for both 2 and 3- year-old universal and extended funding and work in partnership with Integrated Prevention and Earliest Help, accepting referrals for children who may be vulnerable learners.

Partnerships

To help achieve our charitable aims, we have partnerships with other front line agencies including health visitors, educational psychologists, community paediatricians, social services and speech and language therapists. Our staff prepare individual support plans for children with special educational needs and provide support to parents whose children are going through the statutory process for Education, Health and Care Assessments/Plans and Early Help Assessments

Wakoos also works in partnership with West Sussex County Council's Early Childhood Services, benefiting from the support of an Early Years Advisor. Additionally, we work with the local primary schools to reflect their teaching methods and ensure a smooth transition for children.

Wakoos offers work experience to students, this includes trainees from local colleges and schools; government-funded training provision (Babcock and Brighter Horizons); and also supports students studying for higher qualifications such as the EYT.

Forest School – Known as “Wakoos in the Woods.”

Due to staffing shortages, we have sadly had to end our provision of a forest school option as part of the services we offer our children. We believe forest school provides a valuable additional element to the regular childcare provision and is something we would hope to offer again in the future.

Achievements and Performance

Both our nursery sites continue to operate as successful nurseries with many local children and their families benefiting greatly from the flexible, affordable childcare that we provide. There are still very

few alternative providers in the local area that offer the equivalent year-round care that we deliver, and we are the sole provider of out-of-school wraparound care for our local primary schools. We will continue to seek improvements and expansion to our provision where possible, but have been constrained recently due to the industry wide staffing shortages. We are constantly reviewing the benefits we offer our employees to make our charity an enjoyable rewarding place to work. We continue to invest surplus funds into staff training and refreshing the nursery environment, equipment and resources in order to continue providing this vital service to the community.

Significant activities/ milestones

Ofsted inspection at Billingshurst Women’s Hall site (Standards Met) – December 2023

Ofsted inspection at Petworth nursery (Good rating) – January 2024

New area management support role created (part time)- January 2024

New deputy managers in place at both sites

Playground equipment in Petworth outdoor area replaced with new structure – September 2023

Numerous new resources purchased to refresh equipment and environment at both sites

Other notable achievements in meeting our charity’s objectives include:

Challenges

Staffing levels, recruitment and retention has been the main challenge facing us (and the wider industry sector) during the last financial year. Contingency plans have had to be put into place on occasion in order to maintain the required staff:child ratios. This in turn has put pressure on the management teams who have had to spend increased amounts of time ‘on the floor’ instead of completing other office related management tasks. However, the new nursery managers (from

December 2022) have now settled into their roles, with the Petworth nursery now back to a ‘Good’ OFSTED rating. We have also created a new area support manager role (a highly qualified manager to provide support with management tasks and feedback progress and issues to the trustees). This is also the first full year of having an admin assistant in place, and this has proved extremely helpful with office tasks and in supporting our Business/Finance manager. We continue to encourage the sharing of knowledge, training and staff resources between our sites in order to increase efficiency and minimise the impact of staff shortages.

Financial Review

Overview

Wakoos continues in a good financial position and is well placed to continue its aims of providing affordable, flexible childcare services to the local community. The following points are the main changes that have affected our finances during this financial year:

-The National Living Wage increase of 92p per hour (9.7%) from April 2023 has increased our staff salaries. However, due to staff shortages continuing at our nurseries throughout the year, the full cost of these increases is still not yet felt. Another large NLW increase (circa 10%) was also announced for April 2024 which now includes all aged 21+ which will impact our costs going forward.

-Our fees were increased in April 2023 to compensate for the large increase in minimum wage and therefore our salaries.

-Government announced an expansion of its Free Entitlement Funding programme from April 2024 which is good news and will hopefully increase our future income for the funded places. However, the benefit of this will not be felt until later in the 2024-2025 year.

Reserves

In line with guidance issued by the Charity Commission, the Trustees regularly review the Charity’s need for reserves. The Trustees have a policy for keeping a reserve amount which may be needed for any unexpected site maintenance costs and the costs incurred, including redundancies, should the Charity need to be wound down. The current balance of reserves stands at £151,249.31.

Risk management

The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The current risks identified that may affect the finances of the charity going forward are:

To help mitigate or limit the impact of these risks:

Organisational Structure

Organisational structure – Billingshurst

Wakoos Billingshurst is open Monday to Friday 07.30-18.00 for 51 weeks a year.

The nursery is approved to provide places for up to 60 children as well as offering an additional 40 places for an After School Club and Breakfast Club. The building was purpose built for childcare facilities and has two main rooms for different age groups (3mths to 2years and 2years to 5years). The two rooms are further set up into 'workshop' areas. We encourage free flow within the nursery so that the children can independently access and explore all of the different resources, and also the outside areas. There are separate outside garden areas for each room, with the older age group having access to the larger, open plan space with fixed play equipment including climbing frames, sandpit, mud kitchen and some natural vegetative areas. This greatly enhances their learning environment allowing imaginative play and gross motor skill development.

As well as the main day nursery, Wakoos runs a Breakfast and After School Club for reception-age children up until the age of 11. At the nursery site, we use a separate room for this club with a dedicated outside enclosed space with a range of play equipment. We also use an additional capacity site (at Billingshurst Women’s Hall) for some of our older Afterschool Club children and also a Holiday Club during school holidays. This also benefits from an indoor and outdoor space to provide creative opportunities and the learning of new skills. Staff at the clubs engage children with a full range of activities such as art and craft, sports and trips within the local area.

Billingshurst Staff Breakdown: -

urst Staff Breakdown:-
Level 6 Practitioner 1
Level 5 Practitioner
1
Level 4 Practitioner 0
Level 3 early years practitioner 6
Level 2 early years practitioner
1
Unqualified Staff 8 (2 working towards qualification)
Support staff: -
Kitchen staff
2
Office Staff 2
Bank staff
4
Cleaner
2
Total
27

Organisational structure – Petworth

Wakoos Petworth is open Monday to Friday 07.30-18.00 for 51 weeks a year.

The nursery is approved to provide places for a total of up to 65 children aged between 3 months and 11 years. This includes an After School Club and Breakfast Club provision. We work closely with the adjacent Petworth Primary School and the majority of the children attending our setting will feed into this school. Children here are also divided across 2 rooms depending on their age. There is a courtyard garden area with recently updated outdoor play equipment, a sand pit and we also have access to some of the primary school outside area. We have a separate room with its own facilities for the Breakfast Club and After School Club which is adjacent to the courtyard garden area. We are a one storey building which is fully accessible for disabled users.

Petworth Staff Breakdown: -

Level 5 1
Level 3 6
Level 2 2
Unqualified 2
Support staff: -
Kitchen staff 1
Bank staff Level 3 1
Cleaner 1
Total 14

Totalling 41 staff across both sites.

Occasionally staff are temporarily transferred between sites to provide necessary cover. This is allowed for in their contract of employment.

Wakoos follows the OFSTED Safer Recruiting policy. All staff have DBS checks and have attended the mandatory training within their first 6 months of employment or have a current qualification and good understanding of the mandatory training.

Governance and Management

WAKOOS Centre4Children Ltd. is a Charitable Company Limited by Guarantee, with an Articles of Association as its governing document. Wakoos is led by a committee of trustees who have regard to The Charity Commission’s public benefit guidance when exercising any powers or duties to which the guidance is relevant.

The committee of trustees is currently made up of six members, two of whom are elected to hold specific roles (Chair, Treasurer). All trustee names are recorded on the Committee Register and are presented at the Charity’s Annual General Meeting (AGM), which normally takes place each November. At each AGM, the elected officer roles are voted on for the following year.

The trustees are all volunteers, mostly parents from local families who use their local and professional knowledge for the benefit of the Charity. The committee continues to advertise regularly for the recruitment of new trustees. As most of our trustees are parents of children attending our nurseries, we usually have a relatively high turnover as these children grow older and move on to school. We are likely to have some of our trustees stepping down during the next year, so we will be actively recruiting to ensure committee numbers remain sufficient.

We provide all new members with a ‘Committee Welcome Pack’ which is updated regularly with background Charity Commission Trustee guidance and also an induction from the Chairperson, including a familiarity with the Charity’s procedures, documents and confidentiality requirements. All trustees are required to have an enhanced DBS check, agree to our Trustee Code of Conduct and are subject to additional checks as required by OFSTED.

The members of the Committee of Trustees who have held office during the 2023/24 year and to the date of submitting this report are as follows:

Jean Brown Hayley Colligan Eloise Denchfield Nicole Francis Heather Ramiz (resigned April 2024) Stephen Robinson Melita Shall (appointed March 2024) Stephen Tarr (resigned November 2023) Victoria Worsfold (resigned June 2024)

The above trustees all operate on a voluntary basis and therefore no remuneration or pay has been provided for their time. The Trustees volunteer their time freely and all allowable expenses such as travel and DBS checks have been disclosed in the accounts where applicable.

Nursery management team

The Trustees hold meetings with the Wakoos nursery management team most months in order to assist with decision making and direct the business. The nursery management team are employed by the Charity to operate the nurseries and manage the day to day running of the business. The management team consists of a Business/Finance manager, a Nursery Manager for each site (along with deputies), an area Support Manager and an admin assistant.

The pay of the nursery management team and other staff is reviewed by the Trustees annually each April, which is usually coincides with reviewing our nursery fees. Our fees and employee pay is also regularly benchmarked against other similar organisations in the locality as part of the annual pay review.

SUMMARY

We would once again like to thank all our hardworking staff who continue to work through many challenges, especially in times of staff shortages, to ensure Wakoos meets its charitable aims of providing high quality, affordable childcare for the local community. We also thank our Trustees for volunteering their time to assist the management teams and who dedicate themselves to the ongoing success of Wakoos.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of Trustees on

............................................. and signed on its behalf by:

REGISTERED COMPANY NUMBER: 07180968 (England and Wales) REGISTERED CHARITY NUMBER: 1137968

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

FOR

WAKOOS CENTRE4CHILDREN LTD

Galloways Accounting Statutory Auditor Atlas Chambers 33 West Street Brighton East Sussex BN1 2RE

WAKOOS CENTRE4CHILDREN LTD

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Financial Statements 12 to 19
Detailed Statement of Financial Activities 20 to 21

WAKOOS CENTRE4CHILDREN LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

WAKOOS Centre4Children Ltd. is a charitable company that operates across two main leased nursery sites in West Sussex. A third smaller site is leased on a short-term basis at certain times of the day to provide additional capacity for our Billingshurst out-of-school provision.

Each site is registered with OFSTED and runs a breakfast club, day nursery, afterschool club and holiday club; providing flexible, affordable childcare for children aged 3 months to 11 years old.

OBJECTIVES AND ACTIVITIES

Objectives and aims

WAKOOS Centre4Children Ltd. ('Wakoos', 'the Charity') is a not-for-profit organisation which invests in staff and resources to benefit the delivery of quality childcare for the local area. We aim to offer more affordable and flexible childcare in comparison with other local commercial childcare providers.

The Charity, its staff and trustees consider Wakoos to be a vital part of the local community and are committed to both continuing and improving our childcare provision whenever possible. Surveys are also sent out to staff and parents/carers to gain feedback and help achieve this objective. We want Wakoos to be an enjoyable, rewarding place to work and as well as providing a vital childcare service, and, in accordance with the EYFS statutory framework, our nurseries also continue to offer practical early years support and advice to families wherever possible.

Our main aims are to:

Diversity in Childcare :

Wakoos is fully inclusive and our childcare provision is available to all children whatever their race, culture, religion, means or ability. We continue to accept children who are eligible for both 2 and 3-year-old universal and extended funding and work in partnership with Integrated Prevention and Earliest Help, accepting referrals for children who may be vulnerable learners.

Partnerships :

To help achieve our charitable aims, we have partnerships with other front line agencies including health visitors, educational psychologists, community paediatricians, social services and speech and language therapists. Our staff prepare individual support plans for children with special educational needs and provide support to parents whose children are going through the statutory process for Education, Health and Care Assessments/Plans and Early Help Assessments

Wakoos also works in partnership with West Sussex County Council's Early Childhood Services, benefiting from the support of an Early Years Advisor. Additionally, we work with the local primary schools to reflect their teaching methods and ensure a smooth transition for children.

Wakoos offers work experience to students, this includes trainees from local colleges and schools; government-funded training provision (Babcock and Brighter Horizons); and also supports students studying for higher qualifications such as the EYT.

Forest School - Known as "Wakoos in the Woods.":

Due to staffing shortages, we have sadly had to end our provision of a forest school option as part of the services we offer our children. We believe forest school provides a valuable additional element to the regular childcare provision and is something we would hope to offer again in the future.

Page 1

WAKOOS CENTRE4CHILDREN LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

OBJECTIVES AND ACTIVITIES

Significant activities/milestones

Ofsted inspection at Billingshurst Women's Hall site (Standards Met) - December 2023

Ofsted inspection at Petworth nursery (Good rating) - January 2024

New area management support role created (part time) - January 2024

New deputy managers in place at both sites

Playground equipment in Petworth outdoor area replaced with new structure - September 2023

Numerous new resources purchased to refresh equipment and environment at both sites

Public benefit

The main activities of the charity are undertaken to further the purposes for the public benefit.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Both our nursery sites continue to operate as successful nurseries with many local children and their families benefiting greatly from the flexible, affordable childcare that we provide. There are still very few alternative providers in the local area that offer the equivalent year-round care that we deliver, and we are the sole provider of out-of-school wraparound care for our local primary schools. We will continue to seek improvements and expansion to our provision where possible, but have been constrained recently due to the industry wide staffing shortages. We are constantly reviewing the benefits we offer our employees to make our charity an enjoyable rewarding place to work. We continue to invest surplus funds into staff training and refreshing the nursery environment, equipment and resources in order to continue providing this vital service to the community.

Other notable achievements in meeting our charity's objectives include:

Challenges:

Staffing levels, recruitment and retention has been the main challenge facing us (and the wider industry sector) during the last financial year. Contingency plans have had to be put into place on occasion in order to maintain the required staff:child ratios. This in turn has put pressure on the management teams who have had to spend increased amounts of time 'on the floor' instead of completing other office related management tasks. However, the new nursery managers (from December 2022) have now settled into their roles, with the Petworth nursery now back to a 'Good' OFSTED rating. We have also created a new area support manager role (a highly qualified manager to provide support with management tasks and feedback progress and issues to the trustees). This is also the first full year of having an admin assistant in place, and this has proved extremely helpful with office tasks and in supporting our Business/Finance manager. We continue to encourage the sharing of knowledge, training and staff resources between our sites in order to increase efficiency and minimise the impact of staff shortages.

Page 2

WAKOOS CENTRE4CHILDREN LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

FINANCIAL REVIEW

Financial Overview

Wakoos continues in a good financial position and is well placed to continue its aims of providing affordable, flexible childcare services to the local community. The following points are the main changes that have affected our finances during this financial year:

Reserves

In line with guidance issued by the Charity Commission, the Trustees regularly review the Charity's need for reserves. The Trustees have a policy for keeping a reserve amount which may be needed for any unexpected site maintenance costs and the costs incurred, including redundancies, should the Charity need to be wound down. The current balance of reserves stands at £291,603.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee having been incorporated on 6 March 2010. It is also a registered charity (number 1137968), and is governed by its Memorandum and Articles of Association dated 6 March 2010.

Recruitment and appointment of new trustees

WAKOOS Centre4Children Ltd. is a Charitable Company Limited by Guarantee, with an Articles of Association as its governing document. Wakoos is led by a committee of trustees who have regard to The Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.

The committee of trustees is currently made up of six members, two of whom are elected to hold specific roles (Chair, Treasurer). All trustee names are recorded on the Committee Register and are presented at the Charity's Annual General Meeting (AGM), which normally takes place each November. At each AGM, the elected officer roles are voted on for the following year.

The trustees are all volunteers, mostly parents from local families who use their local and professional knowledge for the benefit of the Charity. The committee continues to advertise regularly for the recruitment of new trustees. As most of our trustees are parents of children attending our nurseries, we usually have a relatively high turnover as these children grow older and move on to school. We are likely to have some of our trustees stepping down during the next year, so we will be actively recruiting to ensure committee numbers remain sufficient.

We provide all new members with a 'Committee Welcome Pack' which is updated regularly with background Charity Commission Trustee guidance and also an induction from the Chairperson, including a familiarity with the Charity's procedures, documents and confidentiality requirements. All trustees are required to have an enhanced DBS check, agree to our Trustee Code of Conduct and are subject to additional checks as required by OFSTED.

Page 3

WAKOOS CENTRE4CHILDREN LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure Organisational structure - Billingshurst

Wakoos Billingshurst is open Monday to Friday 07.30-18.00 for 51 weeks a year.

The nursery is approved to provide places for up to 60 children as well as offering an additional 40 places for an After School Club and Breakfast Club. The building was purpose built for childcare facilities and has two main rooms for different age groups (3mths to 2years and 2years to 5years). The two rooms are further set up into 'workshop' areas. We encourage free flow within the nursery so that the children can independently access and explore all of the different resources, and also the outside areas. There are separate outside garden areas for each room, with the older age group having access to the larger, open plan space with fixed play equipment including climbing frames, sandpit, mud kitchen and some natural vegetative areas. This greatly enhances their learning environment allowing imaginative play and gross motor skill development.

As well as the main day nursery, Wakoos runs a Breakfast and After School Club for reception-age children up until the age of 11. At the nursery site, we use a separate room for this club with a dedicated outside enclosed space with a range of play equipment. We also use an additional capacity site (at Billingshurst Women's Hall) for some of our older Afterschool Club children and also a Holiday Club during school holidays. This also benefits from an indoor and outdoor space to provide creative opportunities and the learning of new skills. Staff at the clubs engage children with a full range of activities such as art and craft, sports and trips within the local area.

Billingshurst Staff Breakdown:

Billingshurst Staff Breakdown:
Level 6 Practitioner 1
Level 5 Practitioner -
Level 4 Practitioner -
Level 3 Early Years Practitioner 7
Level 2 Early Years Practitioner 4
Unqualified Staff 13
Support Staff:
Kitchen Staff 4
Office Staff 2
Total 31

Organisational structure - Petworth

Wakoos Petworth is open Monday to Friday 07.30-18.00 for 51 weeks a year.

The nursery is approved to provide places for a total of up to 65 children aged between 3 months and 11 years. This includes an After School Club and Breakfast Club provision. We work closely with the adjacent Petworth Primary School and the majority of the children attending our setting will feed into this school. Children here are also divided across 2 rooms depending on their age. There is a courtyard garden area with recently updated outdoor play equipment, a sand pit and we also have access to some of the primary school outside area. We have a separate room with its own facilities for the Breakfast Club and After School Club which is adjacent to the courtyard garden area. We are a one storey building which is fully accessible for disabled users.

Petworth Staff Breakdown:

Petworth Staff Breakdown:
Level 5 1
Level 3 6
Level 2 3
Unqualified 3
Total 13

Totalling 44 staff across both sites.

Occasionally staff are temporarily transferred between sites to provide necessary cover. This is allowed for in their contract of employment.

Page 4

WAKOOS CENTRE4CHILDREN LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Wakoos follows the OFSTED Safer Recruiting policy. All staff have DBS checks and have attended the mandatory training within their first 6 months of employment or have a current qualification and good understanding of the mandatory training

Risk management

The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The current risks identified that may affect the finances of the charity going forward are:

To help mitigate or limit the impact of these risks:

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

07180968 (England and Wales)

Registered Charity number

1137968

Registered office

Station Road Billingshurst West Sussex RH14 9RY

Trustees

S Tarr (resigned 23.11.23) J Brown H Colligan H Ramiz (resigned 4.4.24) V Worsfold (resigned 30.6.24) S Robinson E Baker (resigned 10.10.24) N Francis (appointed 12.4.23) M Shall (appointed 22.3.24) T Baker (appointed 5.9.24) L Charlesworth (appointed 5.9.24) J Ross (appointed 5.9.24)

Page 5

WAKOOS CENTRE4CHILDREN LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Auditors

Galloways Accounting Statutory Auditor Atlas Chambers 33 West Street Brighton East Sussex BN1 2RE

Banker

Barclays Bank plc 2 Carfax Horsham RH12 1DN

SUMMARY

We would once again like to thank all our hardworking staff who continue to work through many challenges, especially in times of staff shortages, to ensure Wakoos meets its charitable aims of providing high quality, affordable childcare for the local community. We also thank our Trustees for volunteering their time to assist the management teams and who dedicate themselves to the ongoing success of Wakoos.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Wakoos Centre4Children Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees 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 which 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 those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

AUDITORS

The auditors, Galloways Accounting, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

........................................................................ J Brown - Trustee

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WAKOOS CENTRE4CHILDREN LTD

Opinion

We have audited the financial statements of Wakoos Centre4Children Ltd (the 'charitable company') for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WAKOOS CENTRE4CHILDREN LTD

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Colin Young (Senior Statutory Auditor) for and on behalf of Galloways Accounting Statutory Auditor Atlas Chambers 33 West Street Brighton East Sussex BN1 2RE

Date: .............................................

Page 8

WAKOOS CENTRE4CHILDREN LTD

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
-
Charitable activities
6
Nursery, after-school clubs and holiday clubs
721,322
Other trading activities
4
2,274
Investment income
5
1,911
Total
725,507
EXPENDITURE ON
Raising funds
7
7,339
Charitable activities
8
Nursery, after-school clubs and holiday clubs
701,013
Total
708,352
NET INCOME/(EXPENDITURE)
17,155
RECONCILIATION OF FUNDS
Total funds brought forward
274,448
TOTAL FUNDS CARRIED FORWARD
291,603		 Restricted
funds
£
-
273,607
-
-
273,607
-
273,607
273,607
-
-
-		 2024
Total
funds
£
-
994,929
2,274
1,911
999,114
7,339
974,620
981,959
17,155
274,448
291,603		 2023
Total
funds
£
3,300
931,593
6,451
334
941,678
-
965,005
965,005
(23,327)
297,775
274,448

The notes form part of these financial statements

Page 9

WAKOOS CENTRE4CHILDREN LTD

BALANCE SHEET 31 MARCH 2024

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
15
26,166
CURRENT ASSETS
Debtors
16
58,182
Cash at bank and in hand
258,044
316,226
CREDITORS
Amounts falling due within one year
17
(50,789)
NET CURRENT ASSETS
265,437
TOTAL ASSETS LESS CURRENT LIABILITIES
291,603
NET ASSETS
291,603
FUNDS
19
Unrestricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
-
-
-
-
-
-		 2024
Total
funds
£
26,166
58,182
258,044
316,226
(50,789)
265,437
291,603
291,603
291,603
291,603		 2023
Total
funds
£
31,380
57,229
234,398
291,627
(48,559)
243,068
274,448
274,448
274,448
274,448

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. J Brown - Trustee

The notes form part of these financial statements

Page 10

WAKOOS CENTRE4CHILDREN LTD

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024

Notes
Cash flows from operating activities
Cash generated from operations
22
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash provided by/(used in) 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		 2024
£
21,735
21,735
-
1,911
1,911
23,646
234,398
258,044		 2023
£
5,014
5,014
(5,754)
334
(5,420)
(406)
234,804
234,398

The notes form part of these financial statements

Page 11

WAKOOS CENTRE4CHILDREN LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1. STATUTORY INFORMATION

Wakoos Centre4children Limited is a charitable company, limited by guarantee, registered in England and Wales. The address of the registered office is given in the charity information on page 5 of these financial statements. The nature of the charity's operations and principal activities are the provision of childcare facilities to enhance the development and education of children.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The trustees have not identified any events or conditions that are expected to affect the charity's ability to continue as a going concern for the foreseeable future and the financial statements are prepared on this basis.

Income

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Donations

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Nursery fees

Fee income for provision of nursery services is included in incoming resources when the service has been provided, or, if amounts invoiced relate to services both before and after the period end, then in proportion to services provided, with the balance being deferred.

Government grants

The charity receives government grants in respect of provision of childcare and education. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Trading activities

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

All resources are inclusive of irrecoverable VAT.

Allocation and apportionment of costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Page 12

continued...

WAKOOS CENTRE4CHILDREN LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property - Straight line over 20 years Nursery equipment - 33% on reducing balance Computer equipment - 25% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Taxation

The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes; therefore, the charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. The cost of raising and administering such funds are charged against the specific fund.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Debtors and creditors due within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

3. DONATIONS AND LEGACIES

2024 2023
£ £
Gifts and grants - 3,300
4. OTHER TRADING ACTIVITIES
2024 2023
£ £
Fundraising events 2,274 2,451
Apprenticeship scheme funding - 4,000
2,274 6,451

Page 13

continued...

WAKOOS CENTRE4CHILDREN LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

5. INVESTMENT INCOME

Deposit account interest
6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Fee income from Nursery,
after school club and holiday
club
Nursery, after-school clubs and holiday clubs
Grants
Nursery, after-school clubs and holiday clubs
The grants are government grants for the following:
3 year olds and over
2 year olds
Inclusion fund
Other
7.
RAISING FUNDS
Other trading activities
Bad debts
8.
CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
Nursery, after-school clubs and holiday
clubs
923,806		 2024
£
1,911
2024
£
721,722
273,207
994,929		 2023
£
334
2023
£
679,917
251,676
931,593
2024 2023
£ £
235,097 218,291
32,510 24,685
5,600 8,700
- -
273,207 251,676
2024
£
7,339
Support
costs (see
note 9)
£
50,814		 2023
£
-
Totals
£
974,620

Page 14

continued...

WAKOOS CENTRE4CHILDREN LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

9. SUPPORT COSTS

Management
£
Nursery, after-school clubs and holiday clubs
29,408
10.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
Other operating leases
Deficit on disposal of fixed assets
Independent examiner's remuneration - independent examination
Independent examiner's remuneration - other services
Auditor's remuneration - audit fee
Auditor's remuneration - non audit services
11.
AUDITORS' REMUNERATION
Auditors' remuneration for non audit work		 Governance
Other
costs
£
£
2,459
18,947
2024
£
5,214
31,088
-
-
-
10,800
2,040
2024
£
2,040		 Totals
£
50,814
2023
£
4,254
32,345
17
1,000
2,720
-
-
2023
£
-

12. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023.

13. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2024
£
692,990
35,649
20,273
748,912		 2023
£
710,530
35,603
14,129
760,262

Page 15

continued...

WAKOOS CENTRE4CHILDREN LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

13. STAFF COSTS - continued

The average monthly number of employees during the year was as follows:

14.

Level 6 early years practitioner
Level 5 early years practitioner
Level 4 early years practitioner
Level 3 early years practitioner
Level 2 or trainee practitioner
Unqualified after-school staff
Bank staff
Office staff
Kitchen staff
Cleaners
No employees received emoluments in excess of £60,000.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3,300
Charitable activities
Nursery, after-school clubs and holiday clubs
679,917
Other trading activities
6,451
Investment income
334
Total
690,002
EXPENDITURE ON
Charitable activities
Nursery, after-school clubs and holiday clubs
713,329
NET INCOME/(EXPENDITURE)
(23,327)
RECONCILIATION OF FUNDS
Total funds brought forward
297,775
TOTAL FUNDS CARRIED FORWARD
274,448		 2024
1
1
-
13
7
16
-
2
4
-
44
Restricted
funds
£
-
251,676
-
-
251,676
251,676
-
-
-		 2023
1
3
1
17
5
10
4
-
3
3
47
Total
funds
£
3,300
931,593
6,451
334
941,678
965,005
(23,327)
297,775
274,448

Page 16

continued...

WAKOOS CENTRE4CHILDREN LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

15. TANGIBLE FIXED ASSETS

15. TANGIBLE FIXED ASSETS
Improvements
to Nursery Computer
property equipment equipment Totals
£ £ £ £
COST
At 1 April 2023 and 31 March 2024 53,200 56,829 7,835 117,864
DEPRECIATION
At 1 April 2023 29,260 51,023 6,201 86,484
Charge for year 2,660 1,935 619 5,214
At 31 March 2024 31,920 52,958 6,820 91,698
NET BOOK VALUE
At 31 March 2024 21,280 3,871 1,015 26,166
At 31 March 2023 23,940 5,806 1,634 31,380
16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade debtors 55,853 55,016
Prepayments and accrued income 2,329 2,213
58,182 57,229
17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Social security and other taxes 8,788 4,478
Other creditors 6,888 14,351
Fee deposits 10,120 9,250
Accrued expenses 24,993 20,480
50,789 48,559
18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2024
£
15,081
8,797
23,878		 2023
£
15,081
23,878
38,959

Page 17

continued...

WAKOOS CENTRE4CHILDREN LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

19. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Net
movement At
At 1.4.23 in funds 31.3.24
£ £ £
Unrestricted funds
General fund 274,448 17,155 291,603
TOTAL FUNDS 274,448 17,155 291,603
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 725,507 (708,352) 17,155
Restricted funds
Restricted 273,607 (273,607) -
TOTAL FUNDS 999,114 (981,959) 17,155
Comparatives for movement in funds
Net
movement At
At 1.4.22 in funds 31.3.23
£ £ £
Unrestricted funds
General fund 297,775 (23,327) 274,448
TOTAL FUNDS 297,775 (23,327) 274,448
Comparative net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 690,002 (713,329) (23,327)
Restricted funds
Restricted 251,676 (251,676) -
TOTAL FUNDS 941,678 (965,005) (23,327)

Government grants are allocated to the restricted fund since they are restricted to the provision of places within the nursery for entitled children. The cost of care is allocated to the restricted fund up to the value of the grant.

The unrestricted fund is used to further the aims of the charity at the discretion of the trustees.

Page 18

continued...

WAKOOS CENTRE4CHILDREN LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

20. EMPLOYEE BENEFIT OBLIGATIONS

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £20,273 (2023: £14,129). The entire pension cost is allocated to nursery fees since it relates to staff employed in running the nurseries.

21. RELATED PARTY DISCLOSURES

In the year ended 31 March 2024, amounts were received from 5 trustees totalling £33,265, (2023: £16,814) for payment for their children to attend the nursery. These services were charged at the same rate as other users of the service. At the year end, the charity was owed £31 (2023:Nil) from 2 trustees and the charity held £200 (2023:Nil) of deposits related to these services.

No trustees made donations to the charity in the year, (2023: £199).

22. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Loss on disposal of fixed assets
Interest received
(Increase)/decrease in debtors
Increase in creditors
Net cash provided by operations		 2024
£
17,155
5,214
-
(1,911)
(953)
2,230
21,735		 2023
£
(23,327)
4,254
17
(334)
17,819
6,585
5,014

23.

ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£ £ £
Net cash
Cash at bank and in hand 234,398 23,646 258,044
234,398 23,646 258,044
Total 234,398 23,646 258,044

Page 19

WAKOOS CENTRE4CHILDREN LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024

INCOME AND ENDOWMENTS
Donations and legacies
Gifts and grants
Other trading activities
Fundraising events
Apprenticeship scheme funding
Investment income
Deposit account interest
Charitable activities
Fee income from Nursery, after school club and
holiday club
Grants
Total incoming resources
EXPENDITURE
Other trading activities
Bad debts
Charitable activities
Wages
Social security
Pensions
Other operating leases
Rates and water
Light and heat
Sundries
Staff costs
Running costs
Improvements to property
Fixtures and fittings
Loss on sale of tangible fixed assets
Donations
Support costs
Management
Insurance
Advertising
Office costs
Computer equipment		 2024
£
-
2,274
-
2,274
1,911
721,722
273,207
994,929
999,114
7,339
692,990
35,649
20,273
31,088
19,575
-
2,858
6,324
110,454
2,660
1,935
-
-
923,806
3,342
98
25,349
619
29,408		 2023
£
3,300
2,451
4,000
6,451
334
679,917
251,676
931,593
941,678
-
710,530
35,603
14,129
32,345
9,110
220
681
15,933
99,829
2,660
984
17
92
922,133
2,297
583
24,407
610
27,897

This page does not form part of the statutory financial statements

Page 20

WAKOOS CENTRE4CHILDREN LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024

Management
Other
Bank charges
Governance costs
Auditors' remuneration for non audit work
Accountancy and legal fees
Accountancy fees
Legal fees
Total resources expended
Net income/(expenditure)		 2024
£
2,459
2,040
10,800
1,565
4,542
18,947
981,959
17,155		 2023
£
546
-
-
5,878
8,551
14,429
965,005
(23,327)

This page does not form part of the statutory financial statements

Page 21

Atlas Chambers 33 West Street Brighton BN1 2RE t: 01273 324163

The Trustees WAKOOS CENTRE4CHILDREN Limited Station Road Billingshurst West Sussex RH14 9RY

www.wearegalloways.com

Our ref: WAK007

18 December 2024

Dear Sirs

REPORT TO MANAGEMENT

During the course of our audit for the year ended 31 March 2024 a number of matters arose which we consider should be brought to your attention.

Accompanying this letter is a memorandum noting these points together with any recommendations we have for possible improvements which could be made.

These matters came to light during the course of our normal audit tests which are designed to assist us in forming our opinion on the financial statements. Our tests may not necessarily disclose all errors or irregularities and should not be relied upon to do so. However, if any irregularity did come to our attention during our audit tests, we would, of course, inform you immediately.

We would be grateful if you could enter management’s comments against each point under the "management response" column of the memorandum and return it to us in due course.

We have complied with the Financial Reporting Council’s Ethical Standard and all threats to our independence, have been properly addressed through appropriate safeguards. No additional facts or matters have arisen during the course of the audit that we wish to draw to your attention and we confirm that we are independent and able to express an objective opinion on the financial statements.

This report has been prepared for the sole use of the Trustees of WAKOOS CENTRE4CHILDREN and must not be shown to third parties without our prior consent. No responsibilities are accepted by Galloways Accounting towards any party acting or refraining from action as a result of this report.

Yours faithfully

Galloways Accounting

Galloways is the trading name of Galloways Accounting (Audit) Limited, a company registered in England under company number 11462282 registered to carry on audit work in the UK by the Institute of Chartered Accountants in England & Wales. Our registered office is Atlas Chambers, 33 West Street, Brighton, East Sussex, BN1 2RE where a list of the directors names are available for inspection.

SIGNIFICANT MATTERS RELEVANT TO OUR AUDIT FOR THE YEAR ENDED 31 MARCH 2024

Summary of significant audit findings

There were no changes to our audit approach as set out in our planning memorandum dated 13[th] June 2024.

Summary of significant audit findings

Significant risk area identified at
planning		 Implications and recommendations Management response
Management override of controls. No issues identified.
Trade debtors. It was identified that the trade debtors
balance at the year end per Xero did not
agree to the trade debtors balance on
the Connect system. This required
additional work to ensure Xero
reconciled to Connect.
Sales invoices in Connect should be
reconciled monthly to those in Xero.
Debtor reports per Connect should
reconcile to debtor reports in Xero.		 balance at the year end per Xero did not
Revenue recognition. Due to the above issue with trade
debtors, it was identified incoming
resources was not accurate due to the
material misstatement within Xero.
Sales invoices are revised in Connect
after being issued to the billpayers.
Firstly, credit notes or additional
invoices should be used and issued to
billpayers.
Additionally, any changes to Connect
should be reflected in Xero.

Internal controls

The purpose of the audit was for us to express an opinion on the financial statements. The audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control. Our audit is, therefore, not designed to identify all control weaknesses and the matters reported below are limited to those deficiencies that we have identified during the audit.

Control weakness identified Potential implications and
recommendations		 Management response
Payable invoices are not input to Xero
and marked as payable on the date due,
instead are input at the date paid.		 Entering incorrect payable dates could
lead to issues within the bank
reconciliation reports and payments
being included in the incorrect period.
Purchase invoices should be posted as
payable at the date due and payments
then allocated whenpaid.

Galloways is the trading name of Galloways Accounting (Audit) Limited, a company registered in England under company number 11462282 registered to carry on audit work in the UK by the Institute of Chartered Accountants in England & Wales. Our registered office is Atlas Chambers, 33 West Street, Brighton, East Sussex, BN1 2RE where a list of the directors names are available for inspection.

Accounting
Control weakness identified Potential implications and
recommendations		 Management response
Pension contributions have been
overpaid due to payments to ex-
employees continuing after they have
left.		 This is a loss of charity funds and every
effort should be made to recover the
amounts overpaid.
Going forward, information provided to
the charity’s pension provider from
your external payroll provider should be
reconciled to payroll records and
payments each month.
Regular reconciliations of key control
accounts on a monthly basis:
•
Banks
•
Credit cards
•
Payroll
•
Debtors		 Information on Xero is not up to date to
allow the board of trustees to make
informed decisions on up-to-date
information. This could lead to
uninformed decision making with a
negative impact on charity funds
available.
Trustees are responsible for keeping
proper accounting records that disclose
with accuracy at any time the financial
position of the charity.
A number of old debtor balances
suggest that debt collection and bad
debt monitoringis not regular.		 This could lead to misstatements in the
financial statements as historical
amounts are not likely to be recovered.
Petty cash transactions have not been
recorded in Xero.		 This could lead to incomplete financial
statements.
The petty cash book should have all
transactions recorded in Xero and the
physical book should be reconciled to
Xero regularly.
A credit card is still held in an ex-
trustee’s name.		 This is a potential fraud risk and should
be cancelled, even if not in use.

Anticipated audit report

We anticipate that we will issue an unmodified audit report for the year, subject to the satisfactory clearance of any outstanding/unresolved matters.

Galloways is the trading name of Galloways Accounting (Audit) Limited, a company registered in England under company number 11462282 registered to carry on audit work in the UK by the Institute of Chartered Accountants in England & Wales. Our registered office is Atlas Chambers, 33 West Street, Brighton, East Sussex, BN1 2RE where a list of the directors names are available for inspection.