ACORN EARLY YEARS FOUNDATION (A Charitable Company Limited by Guarantee) FINANCIAL STATEMENTS YEAR ENDING 31 DECEMBER 2024 Charity number: 1145108 Company number. 07703801 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 CONTENTS Trustees, Report Page 3 Independent Auditor's Report Page 23 Statement of Financial Activitie8 (including income and expenditure account) Page 26 Balance Sheet Page 27 Statement of Cash Flows Page 28 Notes to the Financial Statements Page 29 ACORN EARLY YEARS FOUNDATION Flnancial statements for the year ended 31 December 2024 TRUSTEES, REPORT The trustees, who are also the directors of the Chaiity for Ihe purposes of the Companies Act, submit their Annual Report together with the audited financial staternents for the year ended 31 December 2024. The financial statements comply with the Charities Act 2011, the Companies Act 2006, Ihe Memorandum and Articles of Associalion, and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). Reference and Administrative Details of the Charlty, its trustees and advisors Charity registered number," Company registered number: 1145108 07703801 The regislered address for the Charily also houses the central support team.. Unit 47, Waterside Barns Lodge Fami Business Centre Castlethorpe Milton Keynes MK19 7ES The following trustees served during the period, or were in Offi￿ at the time these accounts were approved: Eva Lloyd Carolyn Norfolk Giles Chilton Narendra Laljani Vanessa Gwynn Damien Beedham Allawee Albaghdadi Robert Prosser-Dryer Laura Faulkner Hema Kotecha-clarke Katherine Pillai Suzanne Dawes Olivia White Emma Cox Chair of trustees Resigned 16 July 2024 Resigned 3 Oclober 2024 Resigned 27 November 2024 Appointed 7 February 2024 Appointed 8 November 2024 Appointed 8 November 2024 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Reference and Administrative Details of the Charity, its trustees and advisors (continued> The trustees delegate the day-to-day management of the charity to the Chief Executive Officér (CEO) and the Senior Leadership Team (SLT): Zoe Raven Emily Hepden Sue Fenton Laura Tingey Gabrielle Brandon Steve Pety Santa Svike Chief Executive Officer Head of Finance Head of People & Talent Head of Early Years & Compliance Head of Marketing & Cornmunications Facilities and Heallh & Safety Manager Sustainability Lead, Govemance Lead & Content Co-ordinator Bankers: Handelsbanken Moorgate House 201 Silbury Boulevard Milton Keynes MK9 1LZ Solicitors.. Shakespeare Martineau Exchange Square 21 North Fourth Street Milton Keynes MK9 1HL Auditors: MHA Chartered Accountants and Statutory Auditors The Pinnacle 150 Midsummer Boulevard Milton Keynes MK9 1LZ ACORN EARLYYEARS FOUNDATION Flnancial statement5 for the year ended 31 December 2024 TRUSTEES, REPORT About Acorn Early Years Foundation History Acom Early Years Foundation (Acom) was established in 1989 with a single nursery in the village of Castlethorpe, Milton Keynes. The founder. Zoe Raven, still leads the organisation as Chief Executive Officer (CEO), and now works with a ￿ntral support team to support 17 nurseries across four counlies, as well as out-of-school clubs. holiday playschemes, nature kindergartens, forest schools, catering, Iraining and consultancy services. Acom initially operated as a private company. slowly expanding and diversifying into school-age childcare, forest schools, training, and creating a catering hub to support nurseries lacking full catering facilities. By 2011, Acom had developed a Gfoss-subsidy model to support nurseries in economically disadvantaged areas, and at this point Zoe recognised that being a private company was limiting the social impact that had become central to Acorn's mission. A separate not-for-profft company, Tall Oaks, had already been established to run forest schools and training services, and this then became a registered charity and over several years the nurseries were transferred from the original company into this charitable social enterprise. The process was completed in 2016, at which point the organisation changed its name from Acom Childcare to Acom Early Years Foundation. Acorn has developed a social impact model to ensure that its core ethos and values are fully realised, and the organisation is continuing to grow at a manageable pace. Misslon and Objectlves Acorn's mission statement is 'to be an inspirational leaming organisation which operates a model of excellen￿ for earty years care and education which is accessible to all,. The charity's objectives are to enhan￿ the development and education of children primarily under the age of eleven by: 1. The provision of high quality childcare in nurseries, out-of-school clubs and forest sthools,. 2. Working to ensure that high quality childcare is available to children and families regardless of means, race, disability, gender, religion, belief or any other factor: 3. Identifying other social and developmentsl support needs of children and families and seeking to ensure these are mel. 4. Encouraging, enabling and supporting the involvement of parents and carers in their children's learning and development. and 5. Contributing to the professional development of those working in childcare. ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Ethos and Pedagogy Acom's core values are rooted in an ethic of care, and impl8ment8d through a relational pedagogy. The ethic of car8 8mphasises the importance of nurturing relation8hip8 and a responsive approach, and care 18 seen as a value, not just a practice. It guides Acorn's interactions with children, families, staff member8, and the local community. Children need to experience genuinely caring practice if they are to learn how to develop a caring attilude and caring relationships themselves. Acorn's relational pedagogy recognises the need to know and understand children in order to foster their development, and builds on caring relationships between children, parentslcarers and staff. It also extends to children's relationships with people in their local communities, including the elderly, and wilh the natural world. Home visits are a key aspect of the settling-in process for children, laying the foundations of trusting partnerships with parentslcarers, and intergenerational visits to care homes are organised regularly where local opportunities exist. Acorn's ethic of Gare, and relational pedagogy extends to encouraging care and respect for the natural environment, integrating environmentally suslainable practices where possible, across all areas of our work. The five values that arise from this ethos are: Personal - Personalising care and education, treating children, parentslcarers and staff as individuals, within supportive, respectful relationships. Professlonal - Striving to be a leaming organisation, continually reflecting and developing the knowledge, skills and qualifications of the early years workforce. Nurturlng - Putting children's needs first through a holistic approach that encompasses nutrition and encouragement of healthy lifestyles. Outdoor - Encouraging play and leaming in natural environments, through an extensive forest school provision, and every child spending time outdoor8 every day. Ethical Putting children before profit, and being inclusive and 8UStainable, both environmentally and financially. Seeking excellence, honesty and integrity in all aspects of Acom's work. ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Structure, Governance and Management Acorn Early Years Foundation is incorporated as a charitable company limited by guarantee. The board of trust6es delegates operational responsibilities, including financial management, to the CEO, who works along8ide a Senior Leadership Team (SLT) to coordinate 8UPPOrt for the nurseries, out-of-school clubs, forest schools, catering department, and training ￿ntre. The trustees have approved a financial delegated authority framework, as well as a risk management framework and register. Role descriptions for the CEO, chair and trustees outline the delegation scope, and a code of conduct has been adopted by the trustees. Annual skills audits are conducted and used in the recruitment of new trustees. Policy reviews are presented to the trustees, with some trustees focusing on specific areas of the organisation. Currently, two trustees, Laura Faulkner and Emma Cox, share the role of safeguarding trustee, working with Laura Tingey, the organisation's lead safeguarding officer, who is also the head of compliance, to ensure that correct procedures and practices are followed al all times. They scrutinise safeguarding policies and practice to ensure that Acorn remains compliant and effective in safeguarding children. Trustees discuss and approve the pay and remuneration of the CEO each year, and maintain an overview of Senior Leadership Team salaries and the overall pay scale and fair pay policy. There are four committees,. Finance, Audit and Risk, chaired by Robert Prosser-Dryer,' Govemance and HR, chaired by Vanessa Gwynn. Childcare, Learning and Development, chaired by Laura Faulkner, and Remuneration, chaired by Carolyn Norfolk as well as a Strategy and Impact working group, chaired by Katy Pillai. The board of trustees One new trustee appointment to the board was made at the start of 2024 and two more appointments were made at the end of 2024. Three trustees resigned during the year. There were four full board meetings thal were held in person, plus an exceptional meeling held online. A strategy day was also held in person, and each committee met several times, usually online. How Acom's activities dellv8r public benefit Acorn provides inclusive, high quality early years care and education in its nurseries, out-of-school clubs, and forest schools for children from 4 months to 11 years. In safe and supportive leaming environments, highly qualified and professional practitioners nurture each child's social, emotional, and physical development, building their self-confidenc8 and love of learning, and thereby preparing them to lake advantage of opportunities, responsibilities, and eXperIen￿S in later life. Acom aims to be fully inclusive and seeks to provide high quality early years care and education to all children regardless of their background and meeting their individual needs wherever possible. Acom is committed to providing the govemment-funded entitlement in an inclusive way, and is therefore seriously challenged by the current guidance, which treats meals, snacks, consumables, and actNities such as forest schoo18, as optional extras. Acom believe that this breaches our inclusive ethos, as allowing some children to miss out on freshly prepared nutritious meals and snacks, and depriving them of the opportunity to experience Ihe wonder of forest schools, would di8advantage the children most in need of them, and would create a two-tier provision. ACORN EARLY YEARS FOUNDATION Financlal statements for the year ended 31 December 2024 TRUSTEES, REPORT Structure, Governance and Management (continued) How Acorn's activities deliver public benefft (continued) Acom operates a cross-subsidy model, setting fees al rates which aim to be as affordable as possible. and which vary according to location and to each site's overheads. This allows nurseries in areas of deprivation to provide fully funded sessions that indude the full offering of high quality provision. A limited number of fully funded sessions are available in all nurseries, but in cases where the funding rate is significantty below the cost of provision, the cost of some additional hours reflects the indusive nature of the provision, such as meals, consumables and activities. Acom managers are empowered to adapt sessions and costs for families undergoing difficult financial struggles, and no registration fees are payable, only a deposit which is refunded against the first month's fees. Fully funded places have no additional costs. Acom's cross-subsidy model ensures that each nursery covers its own direct costs, but nurseries in areas of deprivation are not required to make their full contribLrtion to central costs, thereby enabling them to be financially sustainable, in situations which would be impossible for single-site nurseries. In having consistent pay scales applied across the group, it also ensures that early years professionals are not penalised by working at nurseries that charge lower fees. All children benefrt from a full range of activities and reSoUr￿s, and a fully inclusive offering that includes nappies, consumables. meals and snacks. Acom work in partnership with family ￿ntres, local authorities, schools, and external agencies and this is a key feature of Acorn's success in supporting parents and carers. and in promoting the earfy years sector as a career pathway for both young people, and adults seeking a change of career. The professional development of Acorn's workforce is a key part of the strategy for maintaining high quality provision within the settings. Training and support is provided for all employees, from apprents.ces to those working towards higher level qualifications. The support for the professional development of early years practits"oners extends beyond the Acorn worlrforce through the training centre. Courses covering core subjects, such as safeguarding, inclusion and first aid, are run alongside a range of wider subjects, from forest school leader training to experiential play. Pay scales are reviewed at least annually, and Acom's action research group is developing ways to support parentslcarers, measure social impact and continually improve early years practice. Forest schools and outdoor play and leaming are of particular importance in delivering public benefit to children who might othenNise miss the chance to conned with the natural world. These experiences offer children freedom, autonomy, and sensory experiences of the outdoor environment, and forest school sessions are available to all pre-school children attending Acom nurseries at no extra cost. During school holidays, Acorn also offers forest school holiday clubs for school-age children, which are ac￿SSed by a high number of children with additional needs. The trustees have had regard to the Charity Commission's guidance on public benefit. ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Achlevements and Perfonnance in 2024 Early Years There were five Ofsted inspections in the year, with Castlethorpe, Hedgerows, Emberton and Mulberry Bear all graded 'Good' and Acom at New Bradwell graded 'Outstanding'. All nurseries within Acom's portfolio have either a 'Good' or 'Outstanding' Ofsted judgemenl, with two further Outstanding judgements having been awarded at the start of 2025. Two Nature Kindergartens were opened this year, one at Cold Harbour and the other at Emberton. At the end of the year, Acorn also acquired a nursery in Wolverton Mill that was eannarf(ed for closure by its operator. The transition look place over the Christmas closure, with staff and children all transferring over, and extensive refurbishment and refreshment of resources taking place. This then enabled places to be offered to many families who had been on the waiting list at nearby Acom nurseries. The Early Years team continued to maintain a high level of support for all Acom sites, and also to some external earfy years providers through the consultancy arm. Acorn was also visited by a total of 34 delegates from Childcare Intemational across three different visrts throughout the year, and Zoe Raven was invited to give a pres6ntation on Acom's Nature Pedagogy at their workshop in Utrecht on 'The Outdoor Space as the Third Pedagogue., Zoe and her colleague Laura Tingey also vistted an outdoor kindergarten and out-of-school club there. Acorn also participated in the Milton Keynes SEND (Special Educational Needs and Disabilities) strategy Workstream meetings, focusing on autism. This involvement has helped drive improvements in SEND support across both early years settings and schools. Forest Schools The forest school provision continued to develop, with an increase in holiday club provision across SaI￿Y Forest and at Acorn's Nature Kindergarten's at Cold Harbour and Emberton. These provisions proved to be popular, with increasing numbers of children attending. Forest school training courses resulted in 17 more forest school leader8 becoming qualified to lèvel 3, four of whom were Acom employees. External sessions also continued, with 17 schools and pre-schools having a total of 131 sessions completed during the year. In addition, a scout group had a session for 70 children. Additional training was delivered for Active Beds al their annual conference. There were 43 sessions for home educated children and 21 tots stay and play sessions. Acorn Training Centre Safeguarding training, delivered in partnership with Tammie Redman, remained a core component of Acom's external training in 2024, alongside a diverse range of olher courses. Throughout the year, 83 courses were offered to extemal delegates (35 more than the previous year). with an additional five exclusively for Acorn employees, complementing the four dedicated staff training days. Of these courses, 55 were conducted in person and 33 online, with a total of 569 external delegates and 248 internal delegates participating in Acom training. Nolably, 2024 saw the introduction of free First Aid Awareness courses for Acom's families, held on Saturdays. Three of these sessions were delivered, with a total of 66 parentslcarers attending. ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Achievements and Perfonnance in 2024 (continued) Acorn Action Research, Sector Presentations and Publishing Acorn's Action Research group continued to work on several projects, including some longitudinal studies measuring the gender balance of parerrtal involvement, the consistency of key persons, and the benefrts of the volunteer programme. In addition, Zoe Raven and Santa Svike presented papers at the European Early Childhood Research Association conference in September. on the ethic of care in early years provision, and on sustainability in early years. In November, both Zoe and Santa presented at the Nursery World conference on sustainability and were approached by an editor from Routledge to submit a book proposal for a guide to sustainability for early years educators. This publishing project is now underway. Zoe has also been working on a book based on her doctoral thesis, which is due for publication by Bristol Policy Press in Spring 2026. Catering The Acorn catering hub continued to supply freshly prepared meals to six internal nurseries which do not have their own full catering facilities and four extemal nurseries in similar situations. In total, 80,129 lunches were provided (63,757 intemally, and 16,372 externally) and 33,931 teas (30,342 intemally, and 3,589 externally). 48 lunches were also provided extemally as part of the Milton Keynes City Council holiday meal provision. Acorn's recipe book, featuring favourite nursery recipes was printed at the end of 2023, and distributed during the year. The book has been positively received by families, with several parents sharing photos and updates of themselves and their children trying out the recipes at home. Acorn's People Acom's workforce grew to 487 employees by the end of 2024, reflecting a 5% increase from the previous year. This gro￿tth was primarily driven by the transfer of employees following the acquisition of the Wolverton Mill nursery from Bright Horizons in De￿rnber. However. staff tumover remains high and has risen slightly compared to 2023. Recruitment challenges persisted throughout the year, in line with sector-wide trends. Nevertheless, the organisation is beginning to see the positive impact of the ApprentI￿S and Nursery Assistants who ComMen￿d their Early Years qualifications in 2023. In 2024, nursery-based employees re￿iVed three pay reviews in January, April, and June in order to remain competitive, and to align with the National Living Wage (NLW) which rose from £10.42 to £11.44 in April 2024. As a result, the average hourly rate for a Qualified Practitioner (Level 2 or 3) increased by 7.80h since January 2024, retaining a differential between the qualified rate and the NLW. In celebration of Acom's 35th anniversary in September 2024, a special lunch was held to honour employees with over 10 years of service. Special recognition was given to an employee who reached 30 years, service. Throughout the year, 45 long-servi￿ awards were presented, including seven for 10 years, three for 15 years, and one for 30 years. Additionally, 30% of employees have been with the organisation for more than five years. 10 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRusfEES' REPORT Achievements and Performance in 2024 (continued) Acorn's People {contlnuod) Apprenticeship development remained a key focus, wtth 35 new apprentI￿S enrolled during the year. Notably, 21 apprenti￿$ completed Iheir Level 3 qualification, 10 of whom achieved a distinction. In 2024, Acom finalised the agreement to take over the Bright Horizons nursery at Wolv6rton Mill. The transfer was conducted in accordance with the Transfer of Undertakings (Protection of Employment) Regulations ffUPE), ensuring a structured consultation process in collaboration with the HR team from Bright Horizons. As a result, 19 employees were transferred to Acorn on their existing terms and condrtions. Training and development remained a key focus in 2024, with four dedicated training days that were both well-received and highly beneficial to staff teams. The average Net Promoter Score (NPS) for these training days was 77, up from 74 in the previous year. The annual staff conference also saw strong engagement, achieving an NPS of 80 compared to 77 the year before. The Conferen￿ brought togeth6r over 250 employees at the Ridgeway Centre in Milton Keynes. The event featured keynote speaker Alice Sharp in the moming, followed by a variety of interactive and engaging learning sessions in the afternoon. This included a course on Boisterous Play delivered by Ben Kingston-Hughes, hands-on woodworking workshop delivered by Pete Moorhouse and a course on 'Maths Makes the World Go Around, by Kirstine Beeley. Acorn's intemal team delivered training on Mindful Marks for Meaningful Art, STEAM (science, lechnology, engineering, arts and maths) and Eco-Friendly Practices. The conference also included infonnative stalls from companies such as Community Playthings, the Scrap Store and Girl Pack. Central Support Office The Central Support Office supports Acorn's nurseries, forests schools and out of school clubs. During 2024, the central support team underwent a reorganisalion, creating two distinct roles for Training & Development Managers, with one manager focusing on Acorn's internal training, while the other overseeing extemal Iraining. Also, the facilities team within the central support team expanded, induding the addition of a gardener to help enhance the outdoor spaces at the nurseries. Relnvostment and development of key assets In 2024, several projects were completed across various sites to improve the physical environmenl and sustainability across Acorn sites, with a caprtal expenditure reinvestment of £391,858. Notable upgrades included the refurbishment of side gardens at Burton Latimer nursery to enhan￿ children's mobility, the installation of sound clouds for improved acoustics, and the addition of a new energy- efficient oven. At Cold Harbour, a new outdoor shelter and robust picket fence were installed, along with improved drainage to prevent flooding. Jubilee Wood saw the addition of a hand-washing trough in the Oaks room, while Kents Hill benefited from an office floor replacement and the installation of a bridge and an extended fence to improve access to the forest school area. 11 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Achievements and Perfo￿anCe in 2024 (continued) Roinveslment and development of key ass8ts (continuod) Other projects induded the installation of a sandpit pergola at Mulbery Bear nursery for weat￿r protection, a new cooker at New Bradwell, and a refurbished toilet at Rowans nursery. Westcroft saw flooring upgrades in the Oaks area, allowing repurposing of rooms for a range of activities. Shambrook received a new climbing frame for children's physical development, while Shenley undenvent signrficant upgrades, including a removal of the old oil heating system, a new air conditioninglhealing system, and improved flooring. Further energy-efficient measures at Shenley included the installation of new waler heaters, front and back doors, and windows, alongside a new fire system and consumer board upgrade. Awards Acom won the 'Nursery Group of the Yearf at the 2024 Nursery World Awards. This award recognised Acom's excellence in every aspect of care, learning and development for all children, the provision of inspirational environments, an exemplary approach to staff developmént and a fostering of warni, supportive relationships with parents and carers. At the 2024 Nursery World Awards, Acom's Head of Early Years & Compliance, Laura Tingey also won the 'Nursery Operations Manager of the Yearf. This award recognised her exemplary leadership and managemenls skills in enabling consistent high quality across all of Acom's nurseries, for the benefit if children, families and staff. Earlier in the year, Laura was also a finalist for the 2024 Women Leaders, Awards in the category 'Communty Impacv. For the first time, 13 of Acom's nurseries achieved their Eco-schools Green Flag Award in 2024, with three achieving this for the first time, nine achieving it for the second or third consecutive year, and one achieving it for the fourth consecutive year. This internationally recognised sustainabilty award recognises the work of nursery practitioners to engage and empower children, as well as their families, to respect, care for and protect our natural environmenl. Acorn was also awarded a place in the Daynurseries Top 20 Nursery Group 2024, recognising it as one of the top 20 rated nursery groups in the region, based on the reviews from its parenls and carers. Sustainability AGorn continued to expand its commitment to sustainability, wrth growing awarene8s of the importance of sustainable practices across the organisation. Throughout the year, staff mernbers-from apprentices to senior nursery managers-took part in the Developing EcfrFriendly Practi￿8 in Ea Years workshop, held during Acorn's staff training days. This workshop has provided essential knowledge on sustainability and its relevance and importance in earfy years education, empowering staff to contribute lo sustainability efforts wherever possible. 12 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES. REPORT Achievements and Performance in 2024 (continued) Sustainability (continued) A key milestone was Acorn's partnership with Eco-schools, through which the organisation has actively participated in the annual programme to integrate environmental leaming and actions into everyday practices. Additionally, Acorn shared its best practices with sector colleagues within its journey so far within the economic pillar of sustainability, by hosting a workshop at Nursery World's annual sustainability conference. Also, as part of Acom'8 Action Research Group, a research piece was conducted exploring how sustainability is understood by children, their families and staff teams. This research was présented artthe European Early Childhood Education Research Association (EECERA) annual conference. The findings from this research laid the foundation for the development of Acorn's sustainability strategy. Social Impact Acorn's charttab16 objectives can be summarised as being to provide high quality early years care and education for children as inclusively as possible, and to work in partnership with families to support their child's learning and developrnent. Complementsry to this is the aim to contribute to the professional development of the early years workforce. These objectives are particularly challenging in the current political and economic climate, when funding policies encourage early years settings to treat meals, snacks, and activities like forest schools, as 'optional extras., Acorn firmly believes that ALL children should have the benefit of nutritious, f￿ShlY prepared meals, and the social capital of carefully curated mealtimes, when children learn to share, take tums, use cutlery and to serve themselves as much as they are able. Forest schools, similarly, should not be limited to children whose parents can afford to pay additional fees. Acorn's social impact, then, is focused around providing the full offering of the best in early years care and education, in ways which remove as many barriers as possible that might prevent children from low-income families, or with additional needs, from accessing provision. The ethic of care underpins Acom's social impact model, which place8 the child at the centre, and nurtures the relationships between children and adults, at home, in the setting, in the local community and in the natural world. Acorn EaAykn Sodal Impact Working low￿￿5 our ¥iSK*n ol IIA•$ ACORN EARLY YEARS FOUNDATION Financial ststements for the year ended 31 December 2024 TRUSTEES. REPORT Social Impact (contlnued) The implementation of this social impact model can be seen in the stories below, which highlight Acorn's achievements in a challenging time for the sector. These achievements rely on a highly committed and dedicated workforce, including volunteers, and on the support of our families, stakeholders and partners in the communities in which we work. Happy, confldent chlldren Acom places its values around the children, emphasising the importance of nurturing, through its ethic of care, of a personal, individualised approach, professional development, ethical policies and practices, and of valuing Ihe outdoor environment. These values are embedded in everyday practi and support childr8n to be happy and confident individuals. Staff teams plan in the moment in order to follow the interests of the children. Staff teams provide children with lots of opportunities to leam beyond the nursery by providing them with first hand experience8, such as travelling on the bus and paying for items at a shop. During 2024 several of Acom'8 nurserie8 provided additional hom6 visits for children with additional needs, practised regular yoga sessions to support children's wellb8ing and created resources to support children's independence at nursery and at home. Throughout the year, Otsted feedback has noted: °Children thrive in this exceptional setting. "Children confidently engage in adventurous play that provides them with challenge" "Children are excited to learn about the world around them. They are eager to develop eco- friendly habits. "Staff give children the confidence they need to explore, take manageable risks and be tenacious when trying new experience8° An Acorn nursery supported a child who was initially under a Child Protection Plan, until they were placed in the care of their father. To ensure a smooth transition, the nursery manager provided dedicated support to the father, helping him establish routines and secure appropriate medical care for his child. To further assist during this period, Acom offered the family 50 hours of free childcare, providing stability and continuity for both the father and child. The impact was profoundly positrve, particularly for the child. Their overall well-being improved significantly, and with consistent routines and care, the child made remarkable ress in their learnin and develo ment. 14 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Social Impact (contlnued) Happy, eonfldent chlldren (continued) pac Acom provided extended nursery placements for two children wtth significant additional needs, allowing them to remain in the nurseries. care beyond the typical school age. The nurseries supported each child until after their frfth birthday, ensuring continurty in their wellbeing, care, and education until surtable school pla￿rnents were available. This additional support positively impacted the children's wellbeing and helped strengthen the overall su ort for their families. 2024 Socl A child who is deaf joined Acorn after the family explored other provisions that were unable to meet their needs. To ensure the child re￿IVed the necessary support. Acom hired a qualified professional with expertise in early years education and British Sign Language levels 1 and 2. In addition, Acom collaborates with the local inclusion team, receiving referrals for other deaf children in Ihe area to en8ure their communication needs are fully su orted. In 2024, Acorn provided support to 70 children with special educational needs across its organisation. This included 15 children with an Education, Health and Caré Plan (EHCP), 7 children in the process of obtaining an EHCP, and 20 children receiving Disability Access Funding (DAF). One of Acorn's nurseries ran a dedicated speech and language group, led by a speech and language Iherapist, to address the significant number of children requiring support in this area. Ofsted reports have praised Acorn's efforts: "The support for children with special educational needs andlor disabilities 18 exemplary and highly effective. Additional support is tailored to each child's specific needs. The manager is highly inclusive in her approach, going above and beyond to ensure the nursery is truly welcoming to children.. °Staff have high expectations of children with special educational needs andlor disabilrties. Leaders take prompt action to ensure that children with SEND receive the support they need to reach their full potenlial. Staff work in excellent partnership with parents. who report how delighffijl they are with the strong progress children make.. Acorn also secured funding from the Holiday Activities and Food (HAF) programme, which enabled the organisalion to provide vital support to children in areas of deprivation during school holidays. This initiative offered enriching activities and hot meals to children who might otherwise lack access to such resources. In 2024, Acorn was able to offer 128 spaces for children through the HAF programme. 15 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Social Impact (continued) Professionalised workforce Acom 18 committed to the continuou8 professional developmenl of its staff teams and dedicates four days each year to staff training days, including an annual conference. During 2024, training topics covered by internal and extemal trainers included invitations to play and using natural resources, paediatric first aid, working together to safeguard children, wellbeing workshops, leadership and management, developing eco-friendly practices, domestic violence, boosting babies, brains, and many more. Acom also supported other settings through consultancy. Some of the staff feedback following training days in 2024: °Really inspiring. Going fonNard, I want to create even more learning activities led by the children's interests that encourage them further wrth what they would like to learn aboutl. 'The whole day was great and really well-organised. It has given me motivation and reminded me why I love this job. "Lots to take back and share with our nursery, from den building to gross motor skills and using fine motor skills in lots of different ways." "So good to hav8 a bett8r under8tanding of how STEAM links into so much that the children do.. Acom also works with local co118ges to support student understanding and knowledge of apprenticeship8 and the early years qualifi'cations that they can achieve. Feedback for Acorn'8 apprenticeship scheme: 'The apprenticeship scheme, offered by Acom Early Years has proved a wonderful experien￿ for my granddaughter who has additional needs. Staff provide on-going training through daily and consistently high quality and creative practice of care and work with babies and young children. They have set a very high standard for my granddaughter which she is pursing with great enthusiasm after a 'rocky' start. She has also received specific training days with fellow students, together with much support 8nabling her to pursue academic qualifications. She is a professional in the making, for which She will owe a great debt lo the company and staff who gave her this rtunit Partnership with families Building strong relationships with families, including parents, carers, and extended family members like grandparents, is a crucial aspect of how Acom helps children feel happy, confident, and ready to leam. Acorn's nurseries prioritise consistent, personalised communication with families, making sure they feel supported in every possible way. Through the year examples of family partnerships included: Home visits for new children starting nursery Provision of a variety of different home learning resources to support children's development at home such as welcoming a new baby, teeth brushing, toilet learning, feelings and emotions Additional support to families with SEN children transiting into the nursery Welcoming of families to the nursery to read books with the children A range of Stay and Plays, including for Motherfs Day, Fatherfs Day and Grandparent's Day Eco-themed comp8titions for families e.g. bird8 spotting and litter picking 16 ACORN EARLY YEARS FOUNDATION Financlal statements for the year ended 31 December 2024 TRUSTEES, REPORT Social Impact (continued) Partnership wlth famllles (continued) Additional sessions offered to a parent who was diagnosed with cancer and was going through chemotherapy Some of th8 highlights: Acorn launched its first set of free First Aid awareness workshops for its parenlslcarers, which received very positive feedback trom families. The topics covered included choking, CPR, head injuries, seizures, body temperatures and minor injuries, helping to give families the confidence to know what to do in various situations. Acom's Kents Hill nursery hosted their first 'Grab & Go, breakfast for their families. Parentslcarer8 were able to sample new breakfast items that will be on offer for the children, working towards phasing out cereals for a healthier, homemade start to Ihe children's day. A parent at one of Acorn's nurseries invited the staff team to their child's adoption ceremony to celebrate the finalisation of the adoption. The parent felt it was important for Ihe nursery team, especially the child's key person, to attend, as they are like family and have played a key role in the child's positive settling-in process. According to the annual family f6edback survey - 96Yo of our families rated the friendliness of our nursery staff as good or excellent 960A of our families rated the relationship our nursery st8ff have with their children as good or excellent 950A of our families rat8d the professionalism of our nursery staff as good or excellent .1 couldnl ask for morel Every aspect of the care that is given is exemplary, every member of the team goes above and beyond.. "My children love coming to nursery and Ihey absolutely love their key worker! You can see the effort that gets put in to get that bond." .1 think the personalised service we receive is eX￿lIent, I feel like every member of staff knows our children and us as individuals. I feel like I know all of the staff too, they are all so friendly.. "The nursery spends lots of time outside and visiting the local community. I love when they have naps outside.. .1 love how the children are outside mixing together as much as possible. The little trips to the fami next door, the park down the road, the shop and walks across the fields is all really lovely.. .1 think the staff ar6 brilliant and I feel very comforlable leaving both my children with anyone who works at the nursery. Even though both have a key person, all staff seem to know every single child on a personal level.. "Both of my children eat incredibly well at nursery, I'm very happy with the food they're offered throughoLrt the day." 17 ACORN EARLY YEARS FOUNDATION Financial Statements for the year ended 31 December 2024 TRUSTEES, REPORT Social Impact (continued) Partnershlp wlth families (continued) .1 always feel listened to if I raise any concern8 e.g. °8he'8 teething so might be a bit grumpy today. "The outdoor facilities are wonderful and I love that the children spend the majority of their time outdoors.. °The staff have both buiM very strong bonds with our child and as such have become important people in his life. When our little girl starts in the coming weeks, we feel very confident that she will be in safe hands and that they will help her to feel secure at nursery just as our son does.. °They go above and beyond to support my little one.. "Our daughter is completely flourishing at nursery and we could not be happier with the level of care and nurturing she is receiving.. AGOM r￿1Ved a Net Promoter Score of 77 in the 2024 Family Feedback Survey (up from 76 in the 2023 Survey) Communlty embeddedness Acom settings are socially embedded within their local communities. In 2024, Acom facilitated 26 visrts to local residential care homes. where children engaged with residents through singing, dancing, and playing games. These intergenerational experiences created meaningful connections, bringing joy and social enrichment to both the children and the elderly. Alongside regular visits to local shops, libraries and garden centres, many of Acorn's nurseries supported local food banks through donations, took part in local village events and spread small acts of kindness in their local community on World Kindness Day. Acorn's Burton Latimer nursery 8UPPOrtad Ihe local communty by sharing 8unfiower seedlings and teaching children how to plant them in the Millennium Gardens. In August, the Burton Latimer Community Nature Reserve highlighted the successful outcome of the community planting. Addrtionally, Acom nurseries organised litter-picking events, collaborating with the Milton Keynes Parks Trust and local councils, where children leamed about environmental care. At Acorn's Stony stratford nursery, children worf(ed with volunteers from Scania to maintain the nursery's own gardening plot at the local allotment, interacting with other plot holders during visits. Throughout the year. Acorn also collaborated with 23 volunteers, some of whom were in the prO￿sS of becoming adoptive parents. These volunteers gained valuable experience through their time at an Acom nursery. where they supported children's wellbeing, confidence, and leaming. Additionally, some of the volunteers We￿ people who have previously been subject to domestic abuse, and by volunteering with Acom, they had the opportunty to build their confidence and develop new skills. Their involvement not only positively impacted the children they worked with but also enriched the nurseries by bringing diverse perspectives and f08tering a supportive, community4riven environment. Furthennore, Acorn participated in Six 8ession8 at a local domestic abuse charity, where it contributed to workshops on first aid, government funding, and a Women in Work project. 18 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Social Impact (continued) Children engaged wlth nature Nature pedagogy is woven into daily nursery practices, all the way from using natural materials in play and crafts to providing free-flow access to garden a￿a$ and forest school sessions, to encouraging care for the natural environment and promoting a positive impact on nature. Throughout the year, the children participated in various nature-related initiatives. They took part in the RSPB'S Big Garden Birdwatch, where they made bird feeders and leamed to identify different bird species. Many nurseries also joined The Wildlife Trust's 30 Days Wld, observing the lifecycles of butterflies and frogs, nurturing plants, recycling, and celebrating environmenlal events such as World Environment Day and Bike Week. Other activities included composting with a wormery. where children leamed about the importance of worms and celebrating World Bee Day by visiting a beehive. The children also had hands-on experiences in the garden, growing fruits and vegetables that they later harvested and enjoyed during meals at nursery. And at Acorn's Emberton Nature Kindergarten children engaged in pond dipping, discovering aquatic life and habitats. Additionally, some nurseries took trips to nature reserves or local rivers to explore and obserrfe wildlrfe, further enhancing their understanding of the natural wotld. By fostering curiosity, these activities not only helped children connect wrth nature but also instilled an ethic of care and responsibilty for the natural world. It also helped children gain a deeper understanding of how their actions can positively impact the environment. To extend children's engagemenl with nature and to help children learn about Sustainable lifestyles and taking action to protect our environment, Acorn'8 nurseries complete the annual Eco-schools piogramme. In 2024, 13 of Acom's nurseries achieved the Eco-schools Green Flag award, recognising their achievements and progress in their eco joumeys. Some of the nurseries achieved the award for the fourth or third consecutive year, and others for the very first time. Feedback from Eco-schools included: "It was wonderful to read that your greatest success has been your ability to spark and encourage the curiosty and fascination of the children when it comes to the outdoors and wildlife." e love the range of activities that your Eco-committee planned for delivery. The fact that they cover both indoor (reducing single-use plastics such as cling film, artivism, reducing food waste, and doirKJ clothes, wellies and book swaps) and outdoor (making bug hotels, log piles and hedgehog homes, creating a bee corridor and a mini pond, planting wildflowers and composting food waste) activities is excellent.. "You engaged the wider community by connecting with parents who kindly allowed the children to Vlsit their allotments. These visits provided valuable opportunities for hands-on leaming experiences." 19 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRusfEES' REPORT Financial Review Acom's turnover grew 15.30k in the year to £13,168,610 (2023: £11,419,095). The growth in turnover is expected to continue into 2025 as a result of a higher demand for nursery places following the expansion of funded childcare and the acquisition of a new nursery, Acom at Wolverton Mill, in December 2024. staff salaries were increased in line with fee increases during the year, but balancing affordabilty and the cost of providing high quality care and education continues to be challenging. The Finance, Audit and Risk Committee monitors the cash position on a quarterly basis. Cash flow recovered in 2024 after ending 2023 on £24,680. This was predominately due to receiving additional funding in advance as well as improving occupancy across the group. In the year to December 2024 £391,858 was approved by the trustses for ongoing investment in nurseries. Soclal Investment and loans The social inveslment loan from the Charities Aid Foundation was fully settled on 3 May 2024. No further loans were taken out in 2024. Subsequentty on 21 January 2025 a new social investment loan of £80,000 was taken out from the Charities Aid Foundation to fund the creation of new places at the nursery in Stanwick. Reserves pollcy The reserves policy was reviewed in November 2024 and it was agreed to increase the unrestricted funds to £300,000 being readily available with the aim to increase this each year. On 31 De￿mber 2024 the charity had unrestricted reserves of £612,377 (2023: £483,952). In the opinion of the trustees, the level of unrestricted reserves is appropriate. Fundraising A small proportion of Acorn's income is generated from fundraising activities and is used for specific projects. In the year, £4,558 was raised through donations. Acom's fundraising policy outlines appropriate fundraising activities and the ethical considerations. All fundraising income in 2024 is accurately documented in the accounts. Future Plans The trustees continue to drive financial stability through the expansion of spaces at our current nurseries or adding nurseries to the portfolio. Principal risks and uncertainties The trustees regularly review major strategic and operational risks and have a risk matrix and a risk register, which identifies risks and how these may be mitigated. Areas of risk that are assessed include finance, operations, governance, environmental issues, regulatory and compliance, and external issues that may affect the early years sector are carefully monitored. 20 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Financial Review (contlnued) Principal risks and uncertainties (continued) Acorn's business Gontinuity plan details actions and responses that may be required in the event of major incidents and this is regularly reviewed. The board of trustees are regularly kept infonned of the charity's financial and operational position and the frequency of updates and m8etings is adjusted to meet the severity or exposure to risks. The board is satisfied that effective systems are in place to monitor and control identifiab18 ri8k8. Major risks that have been identified for the year ahead indude the following.. The impact of th8 recruitment and retention crisis in the early years sector, and the resulting pressure on salaries and in some instances on occupancy levels. Staff shortages also affect staff morale and the consistency of high quality provision, particularly with the difficulty of recruiting qualified practitioners. Inadequate funding levels for the 'free entitlement,, which particularfy affects nurseries with a higher proportion of funded-only places. Going Concern Having reviewed the cash flow forecast and underlying assumptions for the next 12 months the trustee8 remain confident in the ability of the management team lo maintain the charity's financial viability. On this basis the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Disclosure of Infonnation to Auditor The trustees who held office at the date of approval of the Trustee's Report confirm that, so far as they are each aware, there is no relevant audit information of which the Charity's auditor is unaware. and each trustee has taken all the Steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Charity's auditor is aware of that information. Auditor The charity's auditors, MHA were appointed on 5 September 2023. The trustees who held office at the date of approval of the financial statements have confimed the reappointment of MHA for 2025. 21 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 TRUSTEES, REPORT Financial Review (continued) Trustees, Responsibility Statement The trustees (who are also directors of Acom Early Years Foundation for the purposes of company law) are responsible for preparing the trustees, annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practi￿). Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the slate of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the tharilable 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 of the Charilies SORP (FRS 102); • make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any. material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charty will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with r8asonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 20c￿. They are also responsible for safeguarding the assets of the charity and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware there is no relevant audit infonnation of which the charitable company's auditor is unaware. The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit info￿natIon and to establish that the auditor is aware of that information. Eva Lloyd Chair of Trustees 22 ACORN EARLY YEARS FOUNDATION Financial ststements for the year ended 31 December 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ACORN EARLY YEARS FOUNDATION Opinion We have audited the financial statements of Acom Early Years Foundation (the 'charity') for the year ended 31 December 2024 wb.ich comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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. including Financial Reporting Standard 102'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generalty Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charilable company's affairs as al 31 December 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnion We conductod our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs 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 United Kingdom, including the Financial Reporting Council's Elhical Stsndard, 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 concem 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 concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilrties of the Trustees with respect to going concern are described in the relevant sections of this report. Other infonnation The other infonnation comprises the information included in the Annual Report other than the financial statements and our Auditoff s Report thereon. The Trustees are responsibl8 for the other informalion contained within the Annual Report. Our opinion on the financial statements does not cover the other information and. except to the extent othenvise explicitly stated in our report, we do not express any form of assurance Conclusion thereon. 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 23 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ACORN EARLY YEARS FOUNDATION Other Infonnatlon {contlnued) our knowledge obtained in the course of the audit. or othenvise 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 perfonned, we conclude that there is a material misstalement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the info￿natIon given in the Trustees, Report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exception In the light of our 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 Trustees, Report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: • adequale accounting records have not been kepl, or retums adequate for our audit have not been received from branches not Visited by us" or • the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of Trustees, rernuneration specified by law are not made. or we have not received all the information and explanations we require for our audit,. or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement to P￿pare a Strategic Report. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement, 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 concem, disclosing, as applicable, matters related to going concem 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. 24 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ACORN EARLY YEARS FOUNDATION AudIt0￿8 responsibilitles 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 lo issue an Auditor's Report that includes our opinion. Reasonable assuran￿ is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a malerial misstatement when it exists. Misstatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to Influen￿ the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design prO￿dureS in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our prO￿dureS are capable of detectin9 irregularities, including fraud is detailed below". Discussions held wrth management and those charged with govemance around any legal claim. Audit work performed over key risks areas identified such as management override and reviewing accounting estimates for bias. Review of financial statement disclosures to ensure accounting policies have been correctly followed. A further description of our responsibililies for the audit of the financial statements is located on the Financial Reporting Council's webstte at: www.frG.org.ukJaudrtorsresponsibilities. This description fomis part of our Auditor's Report. 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 Audrtor's 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 its members. as a body, for our audit work, for this report, or for the opinions we have fomied. Elizabeth Newell BA (Hons) FCA (Senior Statutory Auditor) for and on behalf of MHA Chartered Accountants Statutory Auditors Milton Keynes Date: 0610512025 MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542) 25 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) Note Unrestricted Funds Restricte d Funds Totsl 2024 Totsl 2023 Income and Expenditure INCOME.. Donations and legacies 4.558 4,558 13,712 Income from tharitable activities 12,941.355 216.102 13,157,457 11,403,943 Investsnent income 6.595 8,595 1,440 Total Income 12.952.508 216.102 13,168,610 11.419,095 EXPENDITURE: Expenditure on charitable activities {12.823,488) (203.940) (13,027.428) {11.480.339) Total Expendlture (12.823,488) {203,940) (13,027,428) (11,480.339) Incomel(expenditure) movement In fund8 for the year before tax 129,020 12,162 141,182 {81,244) Tax on expenditure (595) (595) (1,069) Net in¢0mel(expendi￿re} movement in funds for the year 128,425 12,162 140,587 (62.313) Reconclllatlon of fund8 Total funds brought forward 483,952 10.917 494.869 557,182 Total funds eArried forward 612,377 23,079 635,458 494,889 The Statement of Finanaal Activities includes all gains and losses r8cogni88d in th8 y88r. All income and expenditure derive from continued activities. The accompanylng accountlng polldes and notes on pages 29 to 44 form an integral part of the financial statements. The 2023 ¢OTnp8rative includes both re5trtcted and unrestrictsd fvnd8, a breakdown of the comparatiV8s can be found in note 23 to thes8 financial statements. 26 ACORN EARLY YEARS FOUNDATION Flnancial statements for the year ended 31 December 2024 BALANCE SHEET Note 2024 2023 Fixed Assets Intangible assets Tangible ass8ts 11 12 95.351 850,706 946,057 146,379 1.028.732 1.175.111 Current Assets Debtors Stock Cash at bank Total Curnent Assets 13 305,922 635 439,223 745,780 322,259 717 24,680 347.656 Credltor¥: Amounts fairing due within one year 14 (1,056,381) {1,027,898) Ngt Current Llablllties (310,601) (680,242) Total Assets less Current Liabllltl8s 635,456 494,889 Creditors: Amounts falling due after one year Net Assets 635.456 494.869 The funds of the charity Restrfcted Funds General Unresfficted Funds Totsl Charity Fund8 17 17 23.079 612,377 635.456 10,917 483,952 494,869 The notes on pages 29 to 44 fomi part of these financial statements. The Board of TTUStees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of the financial statements. Th8 financial statements were approved and authorised for issue by the Board of Trustees and signed on their behalf by.. Eva Lloy Trusts8 Company number.. 07703801 27 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 STATEMENT OF CASH FLOWS 2024 2023 Net ca8h u8ed in operatlng actlvltles 18 901,985 349,466 Cash flows from investing activitie8 Purchase of intangible fixed assets Purchase of tangible fixed assets 11 12 (12,495) (356.C60) {391,858) Net cash used in investing activities (391,858) (368,555) Cagh flows from financing activitie8 Investment income Repayment of tK•rrowlngs Interest paid 6,595 (97,394) (4,785) {91.281) (12,426) Net cash from financing actlvitle8 {95,584) (102.26n Increasel(decrease) in cash and cash equivalents in the year Cash and cash equivalents at the beginnirwJ of the year 414,543 (121.356) 24,680 146,036 Cash and cash equlvalents at the end of the year 439,223 24,880 Anatysls of changes In not thbt 1 January 2024 Cash flow8 31 December 2024 Cash at bank 24,680 414,543 439.223 Borrowings (97.394) (72,714) 97.394 511,937 439.223 28 ACORN EARLY YEARS FOUNDATION Financial statements for the year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 1. Accountlng Policies The princrpal accounting policies adopted. judgements and key sourc8s of estimation uncertalnty in the preparation of the financlal statements are set out below. Th8S8 policies have be8n conslstently applied to all years presented unless othe￿ise stated. a) Basis of preparation Acom Eaty Years Foundation is a charitable company lirnited by guarantee registered in England and Wales. In the event of the Charity being wound up. the liabilty in respect of the guarantee is limited to £10 per member of the Chaiity. The address of the registered Offi￿ is given in the Referen￿ and Administrative Details on page 3 of these financial statements. The nature of the charity's operations a￿1 principal activity is the provision of childcare in nurseries. out of school dubs and forest Sch￿[s. The financial ststements have been prepared in a￿OrdanCe with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of RecommerKled Practice applicable to charities preparirvJ their accounts in accordance with the Financial Reporting Standard applrcable In the UK and Republic of Ireland issued in October 2019. the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), Ihe Charities Act 2011, the Companies Ail 2006 and UK Generally Accepted Accountiro Practi￿. A￿rn Earty Years FourKlation meets the definiiion of a public benefit entlty under FRS 102. Assets and liablllties are initially recognised at historical cost or transactlon value unless otherwise ststed in the relevant accounting policy notes. The financial ststements are prepared on a going Concern basis under the historical cost convention. The financial statements are presented in sterling which is the furKtional ￿rrencY of the Charity 8nd rounded to the nearest £. b) Preparation of the accounts on a going concern ba818 Having reviewed t1￿ cash flow foreGast and underlying assumptions for the next 12 months the trustees remain confident in the abilty of the management team to maintain the charity's financial viability. On this basis the trustees continue to adopt the going Car￿eM basis of accounting in preparing the finan(aal statements. c) Income Incorne is recognised when Charity has entitlement to the funds. any perfornian￿ conditions attathed to the items of income have been met. it is probable that the income will be received, and the amount can be measured reliably. Fee tncome is allocated to the month to which it relates. and the free entitl8m8nt funding is allocated on the same basis, with p)licies In pla￿ to ensure entitlement is verifi8d prior to hea(*ount dates. d) Government Grants Income frorn government and other grants, whether'capital. grants or'revenue, grants, Is recognised when the Charfiy has entitlement to the funds. any perfom)an¢e conditions attached to the grants have been met, it is probable that the In￿Me will L￿ re¢enfed and the amount can be measured reliably. 29 ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANaAL STATEMENTS 1. Accounting Policie8 (continued) e) Inveslment Income Interest on funds held on deposlt Is Included when recelved and the amount can be measured rellably by the Charity. This is normally upon nolificatron of the inter8St paid by the Bank. Fund accountlng Unrestricted funds are avallable to spend on actNities that further any of the purposes of the Charity. Designated funds are unrestricted ftjnds of the Charity which the trustees have decided at their discretion to set a8ide to use for a 8pe¢ifi¢ purpose. Restrided funds are funds which are used in accordance with specific restrictions and r8ised by the Charity for a particular putP08e. The aim and use of eath restricled fund is Set out in the notes of the financial statements. Restricted funds Can includé donattons which the donor has sp8cffi8d ar8 to be solely used for partlcular areas of the Charty's work or for speufic prcyects being undertaken by the Charity. g) Expendlturo Expenditur8 is r8cogni88d once there is a legal or constructive oblwation to make a payment to a third paty, It Is probable that settl8ment will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the followlng acllvlty headlngs.. 1. Cost of raising funds comprises the costs of activities outside the regular operatlon of the nurseries, forest schools, out of school clubs, catering and training department. 2. Expenditure on charitable activities comprises the costs of commercial trading including th8 running of the nurseries and their associated ￿Sts. I￿ecoVerable VAT is charg8d as a cost against the activity for whidi the expenditure was incurred. h) Govomance c08t8 Governance costs are those funclions that assist the strategic work of the Charity but do not directly undertake charitable activitie8. These cxlsts have been allocated to expenditure on Charitable activities. Govemance costs are set out in note 8. i) Employee benefrts Thé costs of short-term 8mployee benefits are recogni8ed as a liability and an expen8e, unlwds those costs are required to be recognised as part of the tangible assets. The cost of any unused holiday entiuernent is recognised in the period in which th8 emF4oyee'$ services are received. Tem)ination benefits are recognised immediately as an expense when the Charity is demonstrably committed to t8miinate the employment of an employee or to provide tennination benefits. 30 ACORN EARLY YEARS FOUNDATION Financlal statements and Annual Report forthe year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS l. A¢¢ountlng Policie8 (contlnuad) J) Operatlng leases Rentals applicable to operating leases where substantlally all the benefrts and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight-line basis. k} Finance leases Assets held under hire purchase agreements are capitalised and disdosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the Statement of Financial Activities on a straight-line basis. l) Tanglble fixed assets Tangtble fixed assets are st8ted at historical cost less accumulated depreciation and any accumulated Impairnient losses. Historical costs includes 8xpenditure that is directly attributable to bringing the asset to the kncats'on and condition n￿esSary for it to be capable of operating in the manner intended by the Charity. Depreciation is charged so as to allocate the cost of assets le&8 their resldual value over their estimated useful Ilves. using a straight-line basis. Depreaation is provided on the following basis". Asset Category Annual rate Leasehold Improvements Office Equipment Fixtures and FItUngs Motor Vehicles Play Equipment Lower of 20% of cost and length of lease 20QA _ 33.3Yo of cost 200h of Cost 200/0 of cost Gains and losses on disposals are detemiined ty comparing the proce8ds I￿1h the carying amount and are recognlsed in the Statement of Financial Activities CIr￿lUdIng income and expenditure account). ml Intan9ible flxod as$ets Intsngible assets a￿u1red separately from a buslness are recognised at cost and are subsequently measured at cost less accumulated amortisalion and accumulated impainnent losses. Intsngibl8 assets acquired on business combinalions are recognised separately from goodwill at the acquisition date if the fair value Can be measured reliab￿. All intangible fixed assets related to business combinations are amortised on a straight-lin8 basis over the estlmated economic life of10 years. Intangible assets r8lat8d to computer software are amortised over 3 years. n) Debtorn Trade and other debtors are recognised at th8 settlement amount due after any trade discount offered. Prepayments arè valued at th8 amount prepaid net of any trade discounts due. o) Stock Stocks are valuéd at the lower of cost and net reali58ble value. 31 ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report forthe year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 1. Accounting Policies {continued) p) Cash at bank Cash at bank includ8s cash within 8 cuffent or d8POSIt aCc￿Unt. q) Credftors Creditors are recognised wher8 th8 Charity has a pr888nt obligation results'ng from a pa8t eV8nt that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can measured or estimated reliably. Creditors are normafiy recognised at their settlement amount after allowing for any trade discounts due. r) Financial instruments The Charity only has financial assets and finanGial liabrlities of a kind that qualify as basic financial instruments. Basic finanaal instruments are initially recognised at transadion value and subsequently measured at their settlement value with the exceptron of bank loans which are subsequenty measured at amortised cost using the effective interest method. s) Penslon costs The Charity operates a defined contribution pension ￿heme for employees. The assets ofthe scheme are hekl separately from those of the Charity. T1￿ annual Contri￿tI¢)ns payable are chargèd to the Statement of Financial Activities. The Charity is also part of the Bucks CC LGPS which is a defined benefit scheme. The Charity has three employees in this Scheme. Bucks CC LGPS has Confinned that when the Charily took over these nurseries, the portion of the LGPS relating to it was transf8rr8d at no d8ficitlno surplus. As ther8 is no d8ficit, a valuation has not been obtained under FRS 102 section 28. The payments have been expensed in the same way as that of defined contribution scheme payments. t) Taxation The income and expenditure relating directly to the tharitable activities is exempt from corporation tax. Th8 income and expenditure relating to the non-charitable activities is eligible for corporation tsx. The n(Tr aritable activitie5 relate to training mom hire and extemal catering. 2. Judgements and key Bou￿e$ of estimation uncertainty In the application of the charitable company's accounting policies, the trustees are required to make judgements, estimate5 and assumptions about the carying arnount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experier and other factors thal are considered to be relevant. Actual results may drffer from these estimales. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estirnates are recognised in the period in which the estimate is revised where the revision affects only that period, or In the period of the revision and future periods where the revision affects both current and futL5re periods. 3. Company limitod by guarantse The charity is a Company limited by guarantee and has no share capital. In the event of the chariiable company being wouThJ up, th8 liability in r8SP8Ct of the guarant88 is limited to £10 per m8mb8r of th8 Charity. 32 ACORN EARLY YEARS FOUNDATION Flnancial statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 4. Income eamed from donation8 and legacles Unrestricted Funds Restricted Funds Total 2024 Total 2023 Donations 4.558 13,712 4,558 4.558 13,712 In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts. 5. Income from charitable actlvitie8 Unre8tricted Funds Restrlcted Funds Total 2024 Total 2023 Child¢are ino)m& 12,682.633 216,102 12,898,735 11,180,166 Tralnlng courses 31,185 31,185 42,802 Forest school ac*lvlties 136,720 136,720 101,368 Catering income 63,172 63,172 51.247 Other income 27.645 28,360 11,403,943 12,941.355 216,102 13,157.457 Local authority grants totalling £4,356.925 {2023: £2.500,745) relate to the Two Year Old Offer and the Early Years FurKling. Restricted local authotity grants of £212,486 (2023: £154,622) relats to deprivation funding, inclusion and disabilty access funding grants. Further infomiation can be found in note 17. ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 6. Analy818 of expenditure on charitable activlties Unrestrlcted Fund8 Restricted FundB Total 2024 Total 2023 Childcare costs 11,103.701 203.940 11.307,641 10,010,534 Training costs 56,971 56,971 38,292 Catering costs 58,735 58,735 40,099 Forest school activities cosls 127.515 127,515 112,512 Propety and 8dministr8tion 1,389.696 1,389,696 1,222,280 Accountsncy fees (note 8) 14,550 14,550 14.040 Legal and professional fees 54.193 54,193 18,092 Other financial costs 18,127 24.490 11,480,339 12.823,488 203.940 13,027.428 7. Ta￿lon (a) Tax on In¢omel(expendlture) The tax charge1{c￿d1t) is made up as ft)Ilows: 2024 2023 Current t8X.' UK corporation tax at 19% (2023.. 190h) 595 (245) Prevrous yea¢s tax correction 1,314 595 1,(￿9 (b) Factors affecting the total tax charye Th8 tax assessed on th8 incomel(expenditure) before tax for the year is lower than the standard rate of corporation tsx in the UK of 19% (2023:1Wo). The d[fferen￿S are reconciled below.. 34 ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 7. Taxatlon (continued) (b) Factors affectlng the total tax charge (contlnued) 2024 2023 Incomel{expenditurel before tax 141.182 61.224 Incomel(exp8ndiiure) before tax multiplled by standard rate of corporation tsx in the UK of190/0 (2023.. 19%) 26.825 (11,633) (Expenditurelfincome not deductible ft)r tax purposes (exempt due to derhjed from charity activities) {26,230) 12.702 Prior year tax adjustment (1.314) 45 8. Net incomol (oxpenditure) for the year This Is stated after charging: 2024 2023 Depreciatlon 325,210 299,675 Disposal write offs 244.674 Amortisation 51,028 47.249 Operating lease payments 572.043 567,913 Auditotrs remuneration: Audlt fees 14.550 13,200 Accountancy services Analysis of govemance costs: 2024 2023 Audit f8e8 14.550 13.200 Trustees, expenses 337 129 Consultancy fees 8,160 12,830 23,047 26,159 35 ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMEMrs 9. Analysis of 8tsff cost8, trustee remuneration and expense8, and the cost of Key Management Personnel 2024 2023 Salarres and wages 8.670,154 7.583,625 Social security costs 5*.494 4W,551 Pension costs 379,603 339,177 9,646,251 8.413,353 One employee had employee benefits in 8xcess of £60,WO, wlth totsl employee b&n8ffts 8xcludlng employer pension costs falling within the band of £100.001 to £110,¢XIO (2023.. one employee falling within the band of £100,001 to £110,000). Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholty charged to unrestricted fvnds. The Charlty trustees were not paid or receivgj any other benefits from employment with the Charity In the year (2023.. £nil). Trustees were reimbursed expenses during the year totalling £337 (2023: £129). The amount of consultancy fee8 paid to trustees in the year was £nil (2023: £nil}. The Key Manag8ment Personnel of the Charity comprise the trustees, who receive no remuneration. the Chi8f Executive Officer, and the Senior Leadership Team. The total employee benefits of K8y Management Personnel of the Charity were £405,449 (2023.. £349,230). 10. Staff numbérs The average monthly number of persons (including directors) employed by the Charity during the year was as follr)ws: 2024 Number 2023 Number Total staff 476 476 467 36 ACORN EARLY YEARS FOUNDATION Financlal statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 11. Intanglble assets Computer Goodwill Total Cogt As at 1 January 2024 Additions As at 31 December 2024 12.495 470,732 483,227 12,495 470,732 483.227 Amorti$ation As at 1 January 2024 Charge for the year Amortisation on disposals As at 31 Dec8mb8r 2024 336.504 46,905 336,848 51.028 4.123 4,467 383.409 387,876 Net book value As at 31 December 2024 As at 31 De￿rnber 2023 8.028 12,151 87,323 134,228 95.351 146,379 12. Tanglble fixed assets Leasehold Office Improvements Equipment Flxtures & Fittlngs Motor Play V8hl¢le8 Equlpment Total As at 1 January 2024 Reclassificats'on Additions Disposals As at 31 December 2024 1.412,757 10,143 206,073 (436,564) 1,192,409 60,267 370,617 {10,143) 63,658 (89,295) 334,837 42,626 136,183 2,022,450 23,648 (4,261) 79,654 27,199 71,280 391,858 (9,105) (539.225) 198,358 1,875,083 69,825 Depreciation As at 1 January 2024 Charge for th8 year On disposals As at 31 DwEmb8r 2024 638,481 220,474 <198,283) 660,672 26.455 221,478 18,972 53,872 (3,940) (85,104) 41.487 190,246 32,597 6,894 74,707 993.718 25,198 326.210 7,224) (294,551) 92,681 1.024,377 39,291 Net book valua As at 31 Decembor 2024 As at 31 December 2023 531,737 38,167 144.591 30,534 105,677 850,706 774.276 33,812 149,139 10.029 81,476 1.028,732 37 ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report forthe year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 13. Debtor8 2024 2023 Trade debtors 57,432 112.229 Other debtors 43.527 46,771 Prepayments 204.963 163,259 305,922 322,259 14. Creditors: amounts falling due within one year 2024 2023 Bank loan 97.394 Trade creditors 81,545 174.784 Taxatlon and soclal securlty 136.234 127,734 Other creditors 779,473 541,948 Accruals 59,129 86,038 1,056.381 1,027,898 Acom Earfy Years Foundatlon operates a defined contribution pension scheme for all eligible staff. Outstsnding contributions awaiting payment al the 31 December 2024 were £57,621 (2023.. £51,081). In 2020 the charity borrowed £380,000 from the Charftles Ald Foundatlon. This loan was secured with a f￿ad and floating charge over all the Charity's assets arKJ repayable over four years from September 2020 at an interest rate of 6.50/0 above the base rate. after a six month capital and repayment holiday. On 3 May 2IY24 the remaining loan balance was settled earty. 38 ACORN EARLYYEARS FOUNDATION Financial statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANaAL STATEMENTS 15. Deferred Income Induded wtttiin other creditors are balances relating to deferred income. Deferred income comprise fees and grant income receipts related to financi81 year 2025. 2024 2023 Balance as at 1 January 451.847 414,709 Amounts released to income eamed from charitable xtivities (451.847) (414,709) Amount deferred in y8ar 681,713 451.847 Balar￿ as at 31 Decemb8r 681.773 451,847 16. Commltments under opernting leases A8 at 31 December the Charlty had annual commitments under norFc8ncellable operatlng leases as set out below. 2024 2023 Property leases Other operating le48e8 Property leases Other operating leases Total Total Amounts payable within 1 year 519,Ci)6 15.045 534,051 507.154 23,999 531,153 Amounts payable belween 2 to 5 y8ars 1,499,726 21.279 1.521,CI15 1,331,826 28,546 1,360,172 Amounts payable after 5 years 1,642,998 1,642,998 860,004 3.661,730 36,324 3.698,054 2,698,784 52,545 2,751,329 Post year end a new lease was signed at our nursery at Stanwick increasing th8 annual Gommitments by £50,728 in 2025 annum. 39 ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report forthe year ended 31 December 2024 NOTES TO THE FINANaAL STATEMENTS 17. Analysis of charitable funds Analysis of movements in unre$triGted fvnds Balance at Balanca at 1 January 2024 Income ExperKliture 31 December 2024 General Unrestricted Funds 483,952 12,952,508 (12.824,083) 612.377 Total 483,952 12,952.508 (12,824,083) 612,377 Analysi8 of movernents in unrestricted fund8 . previous year Balance at Balance at 1 January 2023 Income Expendilu 31 December 2023 General Unr8Strfcted Funds 536,636 11.254.226 {l1,3(￿.910) 483,952 Total 536,636 11,254,226 {11,308,910) 483,952 Name of unrnstrictsd fund Descrlptlon, nature and purpo808 of tha fund General Funds Unr88trict8d The Yree reserves, to cover nomial fluctuations of working capital. Designat￿ FurKJs Funds set aside by the trustees for specific purposes. There are no designated funds during the year. 40 ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 17. Analysis of charitable funds (continued) Analysis of movemènts in restrlcted funds Balanco at Balance ot 31 December 2024 1 January 2024 Income Expendfturn MKC Jubilee W￿d deprivatlon Restricted Hlgher Needs & DAF Enjoy Benefft donetions MKC Hedgerows deprivation MKC Rowans deprlvation MKC Ukrainian fund 1.089 20,621 162,569 3,850 19,964 8,864 234 (9,113) {162,569) (3,850) (16,895) (11.513) 12.577 6,515 2.649 9,584 918 Total 10,917 216,102 (203,940) 23,079 Analysis of movements In restricted funds - previous year Balance at Balance at 31 De¢ember 2023 1 January 2023 Income Expondlturn MKC Jubilee W￿d d8privation Réstricted Higher Needs & DAF Mulberry Bear Reserve Enjoy 88nefft donations MKC H8dg8rows deprivation Scott Bader donations MKC Rowans deprivation MKC Ukrainian fund 2,899 12,187 126.837 (14.017) (126,837) (2,768) (2,8CQ) (7,317) (7.647) (13,112) 1,069 2.768 2C 2,600 6,520 7,647 7,312 6,515 7,367 2.649 684 Total 164,869 (174,498) 10,917 Name of restrlctsd fund Doscrlptlon. nature and purposes of the fund Scott Bader donations Company who provided a donation for speafic contribution towards the sensory room at Burton Latimer nursery. Enjoy Benefits donations Parents us8 the childcare voucher offer from Enjoy Benefits and in retum th8 nursery receives paymerrts from the company. The charity receives Disabilty Access Funding 635,456 494,869 Analysls of net asset movements bot*wn funds - prevlous year Fixed Assets Net Llabillties Total 2023 Total 2022 Restricted Funds 10,917 10,917 20.546 General Unrestricted Funds 1,175,111 (691,159) 483,952 1,175,111 (680,242) 494,869 557,182 42 ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 18. Reconclllation of net movement in funds to net cash flow from operatlng a¢livitie8 2024 2023 Net movement in funds Add back disposals wiite off Add back depreciation ch8rge Add bad( amortisation charge Deduct bank interest received Add back loan interest paid Decreasel(Increase) in stock Decreasel{inuease) in debtors Increase in creditors 140,587 244,674 325,210 51,028 {6,595) 4,785 82 (62,313) 299,675 47.249 (1.440) 12.426 (717) (138,673) 193,259 16.337 125.877 901.985 349.466 19. Rolated party tran$aotions Trustees who are Acorn parents do rKJt re￿1ve any fomi of fee subsidy. They pay full price for their childcare. The total payments made by trustee8 for childcar8 for the year to 31 De¢ember 2024 were £25.840 {2023: £32.190). No payments wer6 mede in advanc8 for 2024 child￿re by the trustees {2023.' £271). No free sessions were provrded to trustees in the yearto cover thelr chlldcare cffl days when they were required to attend trustee meetings (2023: £258). In November 2024 A¢t)m received 8 £500 donation from one of the trustee's employers acknowled￿ng their contslbution to a charitable organisation {2023: £51))). In addition, Acom Nursary Properties Limited (ANP), the landlord for two of th8 nursery buildings. Is a ￿lated party. The CEO is the majority shareholder In ANP. ANP charged Acom rent for two properties. totalling £56,917 (2023.. £69.￿0). In Au9USt 2024 ANP sold c(Je of these properties to a third party. Rents payable to ANP are set on a arms lengih basls. and reviewed based on the agreed lease terms. Acom further charged book-keeping of £800 (2023: £600) to ANP. 20. Post balance sheet èvents On 21 January 2025 the charity borrowed £80.000 from the Charitres Aid Foundation to support the expansion of child pla￿$ at the Stanwick nursery. This loan is secured with a fixed and Iloating tharge over all the Charity's assets and repayable overthree years from March 2025 at an fixed interest rate of 5.50h. 21. Capital Commilments As at 31 December 2024, the chariiy was commRted to spending an additional £69,534 towards the development and refurbishment of the Stanwlck nursery. 22. Controlling Party The Charfty Is ultlmately controlled by the Board of Trustees. 43 ACORN EARLY YEARS FOUNDATION Financial statements and Annual Report for the year ended 31 December 2024 NOTES TO THE FINANCIAL STATEMENTS 23. Comparative Statsment of Financial Actlvitios Unrestrieted Funds Restrictsd Funds Total 2023 Income and Expenditure INCOME: Donations and legacies 6,065 7,647 13,712 Income from charitable activities 11,248.721 157,222 11.403.943 Investment income 1.440 Total Income 11,254,226 164,869 11,419,095 EXPENDITURE: Expenditure on charitable activities (11,305,841) (174,498) (11.480.339) Total Expenditure (11,305,841) (174,498) (11.480.339) Net expendlture movement In funds for the year before tax (51.615) (9,629) {61,244} Tax on expenditure (1.069) (1,089) Net expenditure movement in funds for the year {52,684) (9,629) (62,313) Reconciliation of funds 536,636 20,546 557.182 Total funds carried forward 483.952 10.917 494.869