## **MISTLEY KIDS CLUB LIMITED**
(A company limited by guarantee)
## **UNAUDITED**
## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **Trustees**
Mrs Nicola Moxey, Secretary
Mrs Rosemary Smith, Chair
Mr Philip Cunningham, Treasurer
Mr Timothy Parker
## **Company registered number**
07336182
## **Charity registered number**
1140273
## **Registered Address**
Village Hall Shrubland Road Mistley Manningtree Essex CO11 1HS
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## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020**
The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of Mistley Kids Club Limited (the company) for the year ended 31 August 2020. The Trustees confirm that the Annual report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP) issued in January 2015 and in accordance with the Financial Recording Standard (FRS)102. We note the 2019 review of SORP and would welcome changes that help smaller charities provide a true and fair view of their accounts in a more simple and clear way.
## **a. CONSTITUTION**
The company is registered as a charitable company limited by guarantee and established by a Memorandum of Association on 4 August 2010. Its registered charity number is 1140273. The company was incorporated on 4 August 2010 and began trading 6 April 2011 assuming the operations and assets of Mistley Norman Kids Club (registered charity number: 1071360).
## **b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES**
Trustees are returned by election at the Annual General Meeting. If skills are needed in the interim, then candidates are invited to join the Board to contribute those particular skills. New trustees are being actively sought to help run the charity.
## **c. POLICIES AND OBJECTIVES**
Mistley Kids Club Ltd. runs a thriving after school and holiday club for local children; including children with additional social, emotional, and medical needs. We accept children within the age range of 4-16 (and for continuity of care, up to 19 if they have additional needs). We aim to empower both mainstream children and those with additional needs in a fully inclusive play environment. In the school holidays we are able to give the children a broader experience through a variety of organized trips and activities.
Our Club supports working families, enabling them to pursue employment or training. For the parents and carers of children with special needs we provide an essential source of respite.
To ensure high standards, we promote the education and training of the persons engaged in the provision of such care, education and recreational facilities.
The trustees have paid due regard to the guidance issued by the Charity Commission on public benefit and have strived to ensure that the charity's activities reflect this.
## **d. REVIEW OF ACTIVITIES**
The number of children coming to depend on the Charity's services continues to grow, in part due to the rundown of other services in the area. Children come to us from 14 different schools during term time and from several more than this during school holidays; we have up to 40 children attending in each session.
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Some children have very specialised needs and require one to one support and a high level of specialist training. The number of staff required increases significantly during school holidays.
The Charity remains dependent on long term Government funding in the form of restricted grants from Essex County Council, and will remain so for the foreseeable future.
Central government cuts to Local Government funding continues to be the greatest risk factor for the Charity and its staff.
The Charity receives a number of smaller donations from the public, but does not use any professional fundraisers. None of the donations come from outside the UK and the work and expenditure of the Charity does not extend outside the Country.
The Trustee’s hold regular board meetings and meet to oversee the work of the charity with the Manager (Claire Moss) and other staff. Staff pay is reviewed annually in light of increases in Minimum and Living wage rates set by government.
Our Manager and the senior staff have full NVQ level 3 qualifications in Play-work. We work with the Pre-school Learning Alliance to keep up to date on best practice in childcare, and to help us source appropriate training. Professional standards are regulated and inspected by OFSTED. All staff and Trustees are subject to Disclosure and Barring Service (DBS) checks.
## **e, RESERVES POLICY**
The trustees aim to provide and maintain reserves to such a level as to provide solvency, to meet redundancy costs in case of closure and also to hold funds for other unexpected contingencies. The aim is to hold £30,000 in the reserve account, though currently this has to be drawn on periodically to maintain cash flows throughout the year. Whilst some small income is derived from the reserves, the charity does not look to base its income on any material investments and holds no endowment funds.
## **f. PRINCIPAL FUNDING & DONATIONS**
Thanks to the support of the following organisations, Mistley Kids Club Limited continues to be financially viable:-
Essex County Council Mrs Crotty Action for Children The Giving Machine Jack Petchey Foundation Anglian Community Trust Colchester Catalyst Respite Association Fowler Smith & Jones Essex community foundation Robin Wilshaw Colchester Children’s Charity Shop Manningtree Beer Festival Rotary Club of Manningtree Stour Valley Ecclesiastical insurance group. Colchester Institute
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## **g. TRUSTEES' RESPONSIBILITIES STATEMENT**
The Trustees (who are also directors of Mistley Kids Club 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.
In preparing this report the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
None of the trustees have been paid any remuneration or received any other benefits from an employment with the charity or any related entity. No trustee expenses have been incurred. There have been no related party transactions in the reporting period.
The money spent on generating voluntary income is minimal and depends more on the time and voluntary effort of the staff and trustees.
Most grants and donations given to the charity fall clearly within its objectives. Some donations are given for specific purposes and we make sure they are spent on the ‘restricted’ use for which the money was given within the same financial year.
This report was approved by the Trustees on 16[th] December 2020 and signed on their behalf by:
…………………………………………….
## **Mr Philip Cunningham**
Trustee
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## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MISTLEY KIDS CLUB LIMITED FOR THE YEAR ENDED 31 AUGUST 2020**
I report on the financial statements of the company for the year ended 31 August 2020 set out below.
This report is made solely to the company's Trustees, as a body, in accordance with section 145 of the Charities Act 2011 and regulations made under section 154 of that Act. My work has been undertaken so that I might state to the company'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 company and the company's Trustees as a body, for my work or for this report.
## **RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER**
The Trustees, who are also the directors of the company for the purposes of company law, are responsible for the preparation of the financial statements. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the Act) and that an independent examination is needed.
Having satisfied myself that the company is not subject to audit under charity or company law and is eligible for independent examination, It Is my responsibility to:
- examine the financial statements under section 145 of the Act:
- follow the procedures laid down in the general Directions given by the Charity Commission under section 14S(S)(b) of the Act: and
- state whether particular matters have come to my attention.
## **BASIS OF INDEPENDENT EXAMINER'S REPORT**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the company and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the financial statements present a 'true and fair view' and the report is limited to those matters set out in the statement below. _**No fee or payment has been made for this examination**_ .
## **INDEPENDENT EXAMINER'S STATEMENT**
In connection with my examination, no matter has come to my attention:
(1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with section 386 of the Companies Act 2006; and
- to prepare financial statements which accord with the accounting records and comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met; or
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Signed: Dated: 6[th] March 2021
**Gary Parker** (FCCA)
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## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020**
## **(Incorporating income and expenditure account)**
|**INCOME**
Charitable activities
Investments
Income from fees/charges to users
Sundry Income - Bed repairs
**TOTAL**
**EXPENDITURE ON**
Raising Funds
Charitable active. inc wages & admin.
Other – Governance costs
**TOTAL RESOURCES EXPENDED**
Net income**/**movement in funds
Total funds brought forward from
previous year
**Total funds carried forward**|**Unrestricted **
**Funds**
**2020**
**£**
22,634
34
66,159
0
**88,827**
145
80,127
6,500
**86,772**|**Restricted**
**Funds**
**2020**
**£**
128,860
**128,860**
**128,860**
**128,860**|Total
_Total_
**Funds**
_Funds_
**2020**
_2019_
£
_£_
151,494
_133,087_
34
_73_
66,159
_95,399_
_3,017_|
|---|---|---|---|
||||**217,687**
_231,576_|
||||145
_216_
208,987
_227,833_
6,500
_6,500_|
||||**215,632**
_234,549_|
||||2,055
_-(2,973)_|
||||_75,766_|
||||**77,821**|
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## **BALANCE SHEET AS AT 31 AUGUST 2020**
|||**31st**|_31st_|
|---|---|---|---|
|**Assets**||**August**|_August_|
|||**2020**|_2019_|
|**Fixed Assets**||||
|Tangible assets - Club Equipment||£9,645|_£9,645_|
|Less accumulated depreciation on Club Equipment||-£380|_-£253_|
|Leasehold improvements (Sensory Room)||£6,495|_£6,495_|
|Less accumulated depreciation on leasehold improvements||-£4,775|_-£3,183_|
|Less Accumulated Amortisation on Intangibles||-£82||
||**_Total fixed assets_**|**£10,903**|_£12,704_|
|**Current assets**||||
|Cash at Bank: Mistley Kids Club Ltd||£32,649|_£35,650_|
|Cash at Bank: MKC Ltd Active Saver||0|_£946_|
|Cash at Bank: MKC Ltd Business Savings (Redundancy Reserve)||£30,219|_£30,185_|
|Petty Cash||£1,181|_£1,750_|
||**_Total current assets_**|**£64,049**|_£68,531_|
|**Liabilities**||||
|**Creditors – amounts falling due within**|**1 year**|||
|NIC Payable||0|_£2,338_|
|PAYE Payable||-£3,294|_£2,562_|
|Pensions payable||£425|_£569_|
||**_Net Current Liabilities_**|**-£2,869**|_£5,469_|
|**_Total Assets less current liabilities_**||**£77,821**|_£75,766_|
|**The Funds of the Charity**||||
|Restricted income Funds|||_£0_|
|Total unrestricted funds||**£77,821**|_£75,766_|
|**Total Charity funds**||**£77,821**|_£75,766_|
The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act”) and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and for preparing financial statements which give a true and fair view of the state of affairs of the company as at 31 August 2020 and of its net incoming resources for the year in accordance with the requirements of sections 394 and 395 of the Act and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The financial statements have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006 and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008).
The financial statements were proved by the Trustees on 16[th] December 2020
Mr Philip Cunningham
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MISTLEY KIDS CLUB LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020
## **1. ACCOUNTING POLICIES**
## 1.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in January 2015, applicable accounting standards and the Companies Act 2006.
## 1.2 Company status
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £2 per member of the company.
## 1.3 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## 1.4 Incoming resources
All incoming resources are included in the Statement of financial activities when the company has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
## 1.5 Resources expended
Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
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Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
## 1.6 Tangible fixed assets and depreciatio
All assets are capitalised if their use is consistent with that of an asset or if they are over £100 in value.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
General Fixtures & fittings - 20% straight line basis
Note the depreciation on the leasehold improvements to the sensory room had not in previous years been accumulated correctly year on year on our balance sheet. This will therefore be depreciated out over the following two financial years.
## 1.7 Value Added Tax
The company is not registered for Value Added Tax. All expenditure is inclusive of Value Added Tax.
1.
|**GOVERNANCE COSTS**
Independent Examiner
Book keeping
Ofsted
Total|_2020_
_2019_
_0_
_0_
_£6,500_
_£6,500_
_£240_
_£240_|
|---|---|
||£6,740
£6,740|
## **2. GOVERNANCE COSTS**
## **3. STAFF COSTS**
**£163,463 £171,680** Wages, salaries & N.I.
## **4. OTHER NOTES & STATUTORY STATEMENTS.**
- 4.1. The average number of staff during the year was 30.
4.2. The Employers National Insurance paid for the year was £3,276.
4.3. Pension contribution costs for the year was £2,088 and paid to the Government NEST scheme (The Charity holds no pension fund of its own), funded from general, unrestricted funds.
- 4.4. The Manager pay was paid £13.50 per hour.
- 4.5. Statutory Statement: ‘No employee received benefits (excluding pension) of more than £60,000.’
4.6. Statutory Statement: The total amount of employee benefits received by Trustees and its key management personnel for their services to the Charity was £25,122.
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