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2024-03-31-accounts

Company registration number: 06252914 Charity registration number: 1149802

Towers Tiny Tots

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 March 2024

Michael Wood Chartered Accountants Suite G

1 Elwick Road Ashford Kent TN23 1PD

Towers Tiny Tots

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 4
Statement of Trustees' Responsibilities 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 17

Towers Tiny Tots

Reference and Administrative Details

Trustees T A Adams N R Bellman Y D Freeman Secretary Y D Freeman Registered Office The Towers School Faversham Road Kennington Ashford Kent TN24 9AL

The Charity is incorporated in England and Wales.

Company Registration Number 06252914 Charity Registration Number 1149802 Independent Examiner M A Wood FCA Michael Wood Chartered Accountants Suite G 1 Elwick Road Ashford Kent TN23 1PD

Page 1

Towers Tiny Tots

Trustees' Report

The directors and trustees present their report and financial statements for the year ended 31 March 2024. This report also contains a directors' report, as required by company law.

Governing document and legal status of the charity

The charity is constituted as a company limited by guarantee and therefore governed by a Memorandum and Articles of Association. The company was incorporated on 18 May 2007. The most recent Articles of Association of the company were adopted on 27 January 2023. The company was registered as a charity by the Charity Commission on 19 November 2012.

Objects

The objects of the charity are, for the public benefit, to advance and enhance the development and education of children primarily under statutory school age by:

(a) encouraging parents and carers to understand the developmental and educational needs of their children and considering with them the ways in which those needs may best be met;

(b) offering appropriate play, education and care facilities through the carrying on of child care centres for children between the ages of 3 months and 11 years, ensuring that opportunities are provided to all children, whatever their ability, ethnicity, gender, sexual orientation, belief or means; and

(c) promoting public interest in and recognition of the developmental and educational needs of children under statutory school age.

Principal charitable activity

The principal charitable activity of the charity is the operation in Ashford, Kent, of a children’s day nursery and a children’s pre-school. The charity also operates a holiday play scheme and after-school club from the premises where the pre-school is located. All activities are carried out for the public benefit.

Page 2

Towers Tiny Tots

Trustees' Report

Developments and achievements during the year and after date events

The Charity continued the operation of its nursery, pre-school, afterschool club and holiday club in the year ended 31 March 2024.

During the second half of the year the charity saw a reduced demand for childcare. To mitigate this reduction in income staff at the nursery was reduced through voluntary redundancy and a retirement. This downturn is not expected to be long-term as the government is introducing 15 hours of free childcare for working families of 2 year olds from April 2024, and parents are waiting for this to be introduced before enrolling their children. The registers for the new financial year reflect this as demand increases. From September 2024 15 hours of free childcare for working families will be extended to babies from 9 months old, and it is expected that this will also create more demand in the sector.

Despite this downturn the charity was able to invest in its existing staff during the year, with 4 members of staff taking on apprenticeships which will increase the number of level 3 qualified staff working with the children.

In the last quarter of the year, a new management team started at the pre-school; this has been well received by staff and families and the setting continues to be well supported in our local community. The pre-school continues with its afterschool and holiday club provisions primarily for the children of Goat Lees Primary School and the local area. Strong links with the local primary school aids a smooth transition for those children leaving Towers Tiny Tots and starting their reception year at local primary schools. The holiday club this year has again been supported by the government Holiday Activities and Food (HAF) programme.

The directors and trustees would like to thank the managers and staff for their continued hard work and dedication during the year. It is with their efforts, along with the wider support from the local schools and community, that Towers Tiny Tots has been able to continue for another year supporting the children and families of the local area.

Public benefit

The directors and trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to guidance published by the Charity Commission, including public benefit guidance.

Directors and trustees

The trustees and officers serving during the year and since the year end were as follows:

Trustees: T A Adams N R Bellman (appointed 1 January 2024) R L Bryant (resigned 15 July 2024) Y D Freeman

Under the Articles of Association, the charity may by ordinary resolution appoint a person who is willing to act to be a director and trustee. The directors may also appoint a person who is willing to act to be a director. The Articles contain provisions requiring the retirement of directors by rotation.

The directors and trustees meet regularly and make decisions relating to, for example, the charity's strategies, policies and future plans. Day-to-day operational decisions are delegated to the managers at the two settings.

The remuneration of all staff is set by the directors and trustees.

New directors and trustees undertake a suitable induction procedure and are provided with appropriate opportunities for training.

Financial position

During the year the charity had net expenditure of £8,748. Total charity funds at 31 March 2024 amounted to £100,448. The directors and trustees consider the financial position of the charity to be satisfactory.

Reserves

The reserves of the charity, being freely available income funds, at 31 March 2024 amounted to £92,170. It is the policy of the charity to maintain reserves at a level which enables the charity to continue its charitable activities and to ensure that the charity is able to meet any liabilities or other commitments it may have.

Page 3

Towers Tiny Tots

Trustees' Report

Auditors

The charitable company is exempt from the requirement to appoint auditors.

Small company provisions

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

The annual report was approved by the Trustees of the Charity on 8 November 2024 and signed on its behalf by:

......................................... T A Adams Trustee

Page 4

Towers Tiny Tots

Statement of Trustees' Responsibilities

The Trustees (who are also the directors of Towers Tiny Tots 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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 its income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that can 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.

Page 5

Towers Tiny Tots

Independent Examiner's Report to the trustees of Towers Tiny Tots ('the Company')

I report to the Charity Trustees on my examination of the accounts of the company for the year ended 31 March 2024 which are set out on pages 7 to 17.

Responsibilities and basis of report

As the Charity’s Trustees of Towers Tiny Tots (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of Towers Tiny Tots are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your Charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

This report is made solely to the charitable company’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My independent examination work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for my independent examination work, for this report, or for the opinions I have formed.

Independent examiner’s statement

Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... M A Wood FCA

Michael Wood Chartered Accountants Institute of Chartered Accountants in England and Wales

Suite G 1 Elwick Road Ashford Kent TN23 1PD

11 November 2024

Page 6

Towers Tiny Tots

Statement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

2024

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Investment income
5
Total Income
Expenditure on:
Charitable activities
6
Total Expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16
Unrestricted
£
691
352,397
100
353,188
362,436
362,436
(9,248)
(9,248)
109,196
99,948
Restricted
£
-
1,305
-
1,305
805
805
500
500
-
500
Total
2024
£
691
353,702
100
354,493
363,241
363,241
(8,748)
(8,748)
109,196
100,448

2023

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Total Income
Expenditure on:
Charitable activities
6
Total Expenditure
Net expenditure
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16
Unrestricted
£
2,438
381,467
383,905
390,487
390,487
(6,582)
3,025
(3,557)
112,753
109,196
Restricted
£
-
1,952
1,952
1,952
1,952
-
(3,025)
(3,025)
3,025
-
Total
2023
£
2,438
383,419
385,857
392,439
392,439
(6,582)
-
(6,582)
115,778
109,196

All of the Charity's activities derive from continuing operations during the above two periods.

The notes on pages 9 to 17 form an integral part of these financial statements. Page 7

Towers Tiny Tots

(Registration number: 06252914) Balance Sheet as at 31 March 2024

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
13
Creditors: Amounts falling due within one year
14
Net current assets
Net assets
Funds of the Charity:
Restricted income funds
Restricted funds
16
Unrestricted income funds
Unrestricted funds
Total funds
16
2024
£
7,778
7,778
5,298
110,158
115,456
22,786
92,670
100,448
500
99,948
100,448
2023
£
9,541
9,541
10,223
114,130
124,353
24,698
99,655
109,196
-
109,196
109,196

For the financial year ending 31 March 2024 the Charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements on pages 7 to 17 were approved by the Trustees, and authorised for issue on 8 November 2024 and signed on their behalf by:

......................................... T A Adams Trustee

The notes on pages 9 to 17 form an integral part of these financial statements. Page 8

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2024

1 Charity status

The Charity is a charitable company incorporated in England and Wales which is limited by guarantee and does not have a share capital. Each of the members is liable to contribute an amount not exceeding £100 towards the assets of the Charity in the event of liquidation.

The company's registered office and the location of its principal place of business is:

The Towers School Faversham Road Kennington Ashford Kent TN24 9AL

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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) (second edition, effective 1 January 2019) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and, where applicable, the Charities Act 2011.

Basis of preparation

Towers Tiny Tots meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The presentation currency is sterling, rounded to the nearest pound.

Going concern

The financial statements are prepared on a going concern basis.

Exemption from preparing a cash flow statement

The charity is exempt from preparing a cash flow statement.

Fund accounting

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

Restricted funds are those granted or donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Page 9

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2024

Income and endowments

All income is included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Income from donations and grants, including capital grants, is included in incoming resources when these are receivable.

Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract.

Other income is accounted for on a receivable basis.

Expenditure

Expenditure is accounted for on an accrual basis. The irrecoverable element of VAT is included with the item of expense to which it relates.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements.

Government grants

The charity recognises government grants in income when the conditions attached to a grant are met, and the charity has reasonable assurance that the grant will be received. Where a government grant is unconditional then the charity recognises the grant in income when it is receivable. If a government grant is received before the conditions attached to it are satisfied, the grant is recognised as a liability, and only released to income once the conditions are met.

Tangible fixed assets

Tangible fixed assets are stated at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Improvements to short leasehold property Equipment

Depreciation method and rate Straight line basis over lease term 20% per annum straight line basis

Impairment of fixed assets

Fixed assets are subject to an annual impairment review.

Operating leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Pension costs

The company operates a defined contribution pension scheme. Contributions are recognised in the Statement of Financial Activities in the period in which they become payable in accordance with the rules of the scheme.

Page 10

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2024

3 Income from donations and legacies

Donations and legacies:
Donations
Unrestricted
General
£
691
691
Restricted
£
-
-
Total
2024
£
691
691
Total
2023
£
2,438
2,438

4 Income from charitable activities

Fee income - Day Nursery
Fee income - Pre-School
Amounts receivable from Kent County Council for
funded places - Day Nursery
Amounts receivable from Kent County Council for
funded places - Pre-School
Other income - Pre-School
Other grants receivable
Unrestricted
General
£
133,733
37,853
80,674
91,104
8,033
1,000
352,397
Restricted
£
-
-
-
-
-
1,305
1,305
Total
2024
£
133,733
37,853
80,674
91,104
8,033
2,305
353,702
Total
2023
£
147,322
34,323
90,063
98,390
7,369
5,952
383,419

The total of the grants received by the charitable company from central and local government during the year was £173,583 (2023 £194,405).

5 Investment income

Unrestricted
funds Restricted Total Total
General funds 2024 2023
£ £ £ £
terest receivable and similar income:
Bank interest receivable 100 - 100 -

Interest receivable and similar income:

Page 11

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2024

6 Expenditure on charitable activities

Unrestricted

Unrestricted
Note
Wages and salaries
Staff NIC (Employer's)
Staff pensions (Employer's)
Staff training
Repairs and maintenance
Activities, catering and incidentals
Sundry expenses (incl health and safety, hygiene
and cleaning)
Recruitment costs
Rent (operating lease rentals)
Rates
Light, heat and power
Insurance
Telephone
Computer software and maintenance costs
Printing, postage and stationery
Subscriptions
Travel and subsistence
Advertising
Staff entertaining
Payroll fees
Bad and doubtful debts
Bank charges
Depreciation of improvements to short leasehold
property
Depreciation of equipment
Governance costs
7
General
£
264,630
10,827
4,562
1,575
3,832
22,698
8,052
107
14,001
1,577
4,483
2,815
1,677
644
3,249
2,558
-
378
357
504
2,783
798
4,222
2,393
3,714
362,436
Restricted
£
-
-
-
-
-
805
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
805
Total
2024
£
264,630
10,827
4,562
1,575
3,832
23,503
8,052
107
14,001
1,577
4,483
2,815
1,677
644
3,249
2,558
-
378
357
504
2,783
798
4,222
2,393
3,714
363,241
Total
2023
£
284,407
12,582
5,097
2,669
7,459
32,041
9,857
268
11,416
1,505
3,909
2,413
1,706
230
3,524
2,566
49
291
812
936
252
751
3,238
2,067
2,394
392,439

Page 12

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2024

7 Analysis of governance costs

Governance costs

Independent examiner's fee for accountancy services
Independent examiner's fee for examination of the accounts
Legal and professional fees
Unrestricted
General
£
1,125
1,125
1,464
3,714
Total
2024
£
1,125
1,125
1,464
3,714
Total
2023
£
1,056
1,338
-
2,394

8 Trustees' remuneration and expenses

No Trustees, nor any persons connected with them, received any remuneration or reimbursement of expenses from the Charity during the year.

9 Staff costs

The aggregate staff costs were as follows:

Wages and salaries
Social security costs
Pension costs
2024
£
264,630
10,827
4,562
280,019
2023
£
284,407
12,582
5,097
302,086

No employee received emoluments of more than £60,000 during the year.

The average number of employees during the year was 17 (2023 - 21).

Page 13

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2024

10 Taxation

The Charity is a registered charity and is therefore exempt from taxation.

11 Tangible fixed assets

Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Eliminated on disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
12 Debtors
Trade debtors
Prepayments
Other debtors
13 Cash and cash equivalents
Cash on hand
Cash at bank
Improvements
to short
leasehold
property
£
91,818
2,964
-
94,782
88,584
4,222
-
92,806
1,976
3,234
Improvements
to short
leasehold
property
£
91,818
2,964
-
94,782
88,584
4,222
-
92,806
1,976
3,234
Equipment
£
51,370
1,888
(4,074)
49,184
45,063
2,393
(4,074)
43,382
5,802
6,307
2024
£
3,537
1,761
-
5,298
2024
£
110
110,048
110,158
Equipment
£
51,370
1,888
(4,074)
49,184
45,063
2,393
(4,074)
43,382
5,802
6,307
2024
£
3,537
1,761
-
5,298
2024
£
110
110,048
110,158
Total
£
143,188
4,852
(4,074)
143,966
133,647
6,615
(4,074)
136,188
7,778
9,541
2023
£
4,722
5,006
495
94,782
88,584
4,222
-
92,806 43,382
1,976 5,802
3,234 6,307
2024
£
3,537
1,761
-
5,298
2024
£
110
110,048
110,158
10,223
2023
£
234
113,896
114,130

Page 14

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2024

14 Creditors: amounts falling due within one year

14 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals
2024
£
279
2,918
16,298
3,291
22,786
2023
£
1,303
1,528
19,396
2,471
24,698

15 Related party transactions

There were no related party transactions requiring disclosure in the year.

16 Funds

2024

Unrestricted funds
General
General
Restricted funds
Holidays and Activities Food
Programme
Fund to set up community projects
Total restricted funds
Total funds
Balance at 1
April 2023
£
109,196
109,196
-
-
-
109,196
Incoming
resources
£
353,188
353,188
805
500
1,305
354,493
Resources
expended
£
(362,436)
(362,436)
(805)
-
(805)
(363,241)
Transfers
£
-
-
-
-
-
-
Balance at 31
March 2024
£
99,948
99,948
-
500
500
100,448

Page 15

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2024

2023

2023
Unrestricted funds
General
General
Restricted
Fund for new floor mats and tables
in pre-school hall
Contain Outbreak Management
Fund for containing Covid-19
outbreak
Holidays and Activities Food
Programme
Total restricted funds
Total funds
Balance at 1
April 2022
£
112,753
112,753
800
2,225
-
3,025
115,778
Incoming
resources
£
383,905
383,905
-
-
1,952
1,952
385,857
Resources
expended
£
(390,487)
(390,487)
-
-
(1,952)
(1,952)
(392,439)
Transfers
£
3,025
3,025
(800)
(2,225)
-
(3,025)
-
Balance at 31
March 2023
£
109,196
109,196
-
-
-
-
109,196

Transfers from restricted funds to unrestricted funds arose during the year ended 31 March 2023 following the satisfaction of conditions attached to restricted funds, enabling them to be transferred to unrestricted funds, or to recognise that certain costs relating to specific purposes funded by restricted funds have been met from general costs incurred on charitable activities.

17 Commitments

At the balance sheet date, the charity had total future minimum lease payments under non-cancellable operating leases of £8,532 (2023 £7,850), of which £4,875 (2023 £7,850) falls due within one year and £3,657 (2023 £nil) falls due between one year and five years.

The charity also had a commitment for capital expenditure of £2,185 at the balance sheet date (2023 £nil).

Page 16

Towers Tiny Tots

Notes to the Financial Statements for the Year Ended 31 March 2024

18 Analysis of net assets between funds

2024

2024
Tangible fixed assets
Current assets
Current liabilities
Total net assets
2023
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Unrestricted
funds
General
£
7,778
114,956
(22,786)
99,948
Unrestricted
funds
General
£
9,541
124,353
(24,698)
109,196
Restricted
funds
£
-
500
-
500
Restricted
funds
£
-
-
-
-
Total funds at
31 March
2024
£
7,778
115,456
(22,786)
100,448
Total funds at
31 March
2023
£
9,541
124,353
(24,698)
109,196

Page 17