Company Number: 08139666 Charity Number: 1151208
J.E.TS Centre (A Company Limited by Guarantee) Annual Report & Financial Statements For the year ended 31 July 2020
Greater Merseyside Community Accountancy Service Sefton Council for Voluntary Service 3rd Floor, Suite 3b Burlington House Crosby Road North Waterloo Liverpool L22 OLG
J.E.TS Centre Contents
Pages
| 3-7 | Trustee's Annual Report |
|---|---|
| 8 | Independent Examiner's Report |
| 9 | Statement of Financial Activities |
| 10-11 | Balance Sheet |
| 12-20 | NotestotheFinancialStatements |
page 2
J.E.TS Centre Trustee's Annual Report For the year ended 31 July 2020
The trustees, who are also Directors for the purposes of the Companies Act, present their annual report and financial statements of the charity for the year ended 31 July 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102 applicable in the UK and Republic of Ireland.
The Charity
J.E.TS Centre is constituted as a company limited by guarantee and not having a share capital. The company is registered in England and Wales No. 08139666. The charity is registered with the Charity Commission No. 1151208. The principal governing document is the Company Memorandum and Articles of Association dated 5th February 2013.
The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for Charities applying FRS102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
Objectives and Activities
The objects of the charity are to:-
1) Provide the necessary facilities for the daily care, recreation and education of children during school, out of school hours and school holidays.
2) Benefit the residents of Sefton and the neighbourhood, without distinction of sex, sexcal orientation, race or politcal, religious or other opinions by associating together the said residents and local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation, leisure time occuptation with the objective of improving the conditions of life for the residents.
3) Promote such other charitable purposes as may from time to time be determined.
The charity aims to achieve it's objects through the provision of childcare facilities through two breakfast/ after school clubs and one holiday club for children aged 2-12,
In setting our objectives and planning our activities the trustees have given careful consideration to the Charity Commission's guidance on public benefit.
page 3
J.E.TS Centre Trustee's Annual Report For the year ended 31 July 2020
Achievements and Performance
J.E.TS Centre is based in a large detached building in spacious grounds in Waterloo and within the school buildings of St Nicholas Church of England Primary School in Blundellsands and their Church Hall. All are conveniently placed for a number of local schools and supports families from the Waterloo, Crosby, Blundellsands, Thornton, Seaforth and surrounding areas.
We continue to work closely with all the statutory bodies and in particular Sefton CVS to help us develop and improve the services we provide for the local community.
Financial Review
The operational surplus on the general fund during the year was £20,102.
The surplus whilst pleasing, has arisen partly due to the expanded nursery facility beginning to contribute to the success of the setting, however the circumstances of the 2020 pandemic, forced closure of the majority of our services and facilities, ongoing support from our parent base and both local and national government has had a major impact on finances.
Following government guidance we reluctantly closed the setting at the beginning of Apri! 2020 and bar provision of a service for our key worker children, remained closed until
We have looked to support from the Coronavirus Job Retention Scheme to protect our staff base and continue to do so. This has enabled us to retain our staff base and be ready for when we are allowed to fully re-open and rebuild our services.
Our parent base has remained supportive of the Centre and their ongoing commitment to us has been heartening and given us the confidence to continue with the business in the full knowledge that their children will return to the various settings once Government guidelines permit.
An additional one off support payment was received from Sefton Council and we will continue to monitor the availability of access to funding such as this.
Whilst the short to medium term future remains uncertain, with the confidence of continuing parent and local/national government support the Trustees agreed to provide further working capital with a government backed bounce back Ioan to ensure we are on a strong footing financially for when services recommence and build back to former levels.
Close monitoring of the finances will continue and a decision will be taken during May 2021 as to whether this additional working capital is required.
The Trustees are confident that the company will recover from the impact of the Coronavirus and business will return to pre pandemic levels and with the changes to put in place to support Seniot Management that JET's Centre will continue operating as a going concern.
page 4
J.E.TS Centre Trustee's Annual Report For the year ended 31 July 2020
Reference and administrative details
Charity number: 1151208
Company number: 08139666 Registered Office: J.E.T.S.
J.E.T.S. Centre, Oxford Road, Waterloo, Liverpool. L22 8QF
Our advisors
Independent Examiner: Bankers:
Anthony Deegan MAAT MICB Pm.Dip HSBC, 99-101 Lord Street, Liverpool. L2 6PG
Directors and trustees
The directors of the charitable company (the charity) are its trustees for the purposes of charity law. The trustees and officers serving during the year and since the year-end were as follows:
Trustees
Barry Willan Christopher McGrory John Erskine Paul Merryweather Resigned December 2019
Structure, Governance and Management
Governing Document
J.E.TS Centre is a company limited by guarantee governed by its Memorandum and Articles of Association dated 11th July 2012 as amended on 5th February 2013. It is registered with the Charity Commission. Anyone over the age of 16 can become a member of the Company and there are currently 4 members, each of whom agrees to contribute £10 in the event of the charity winding up.
page 5
J.E.TS Centre Trustee's Annual Report For the year ended 31 July 2020
Appointment of trustees
As set out in the Articles of Association the trustees are elected by members of the charitable company attending the Annual General Meeting. The longest service one third of trustees retires each year and is able to offer themselves for re-election.
Organisation
The board of trustees administers the charity. The board normally meets monthly and there are sub-committees covering development, membership, finance and audit which normally meet monthly.
Related parties and co-operation with other organisations
None of the trustees receives remuneration from their work with the charity. One trustee does provide other services to the charity for which they receive benefit. Any connection between a trustee or senior manager of the charity and any client or supplier is disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. In the current year one contractual relation with a related party was reported.
Risk Management
The trustees have a risk managment strategy which comprises:
- an annual review of the principal risks and uncertainties that the charity faces; * the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; * the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
This work has identified that financial sustainability is the major risk for both the charity and the company. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank and active management of debtors and creditors balances to ensure sufficient working capital by the charity.
Attention has also been focused on non-financial risks arising from fire, health and safety of clients and food hygiene. These risks are managed by ensuring accreditation is up to date, having robust policies and procedures in place, and regular awareness training for staff working in these operational areas.
page 6
J.E.TS Centre Trustee's Annual Report For the year ended 31 July 2020
Trustees’ Responsibilities
The trustees, who are also the directors of J.E.TS Centre for the purpose of company law, are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that year. in preparing the financial statements, the trustees are required to:
1) Select suitable accounting policies and then apply them consistently;
2) Observe the methods and principles on the Charities SORP;
3) Make judgements and estimates that are reasonable and prudent;
4) State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
5) Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will contionue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Comapnies Act 2006. They are also responsible for the safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report was approved by the board of trustees on 19 April 2021 and signed on their behalf.
TrusteeChristopher J McGroryaN
----- Start of picture text -----
page 7
----- End of picture text -----
Independent Examiner's Report To the trustees of J.E.TS Centre For the year ended 31 July 2020
I report on the charity trustees on my examination of J.E.TS Centre for the year ended 31 July 2020.
Responsibilities and basis of report
As the charity's trustees of J.E.TS Centre (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 J.E.TS Centre 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.
Independent examiner's statement
I am a member of the AAT and I am bound by the code of ethics issued by FRC's Revised Ethical Standard 2016.
Accounts preparation services were provided by Sefton CVS, my employer, and I as examiner have applied the ethical standard to my work.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to beleive:
(1) accounting records were not kept in respect of J.E.TS Centre 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 applicable 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.
Anthony Deegan MAAT MICB Pm.Dip Community Accountant Sefton Council for Voluntary Service Burlington House Crosby Road North Waterloo Liverpool L22 OLG 19 April 2021
page 8
J.E.TS Centre Statement of Financial Activities (Incorporating Income & Expenditure Account) For the year ended 31 July 2020
| Note | Unrestricted Funds |
Total 2020 |
Total 2019 |
|
|---|---|---|---|---|
| £ | £ | £ | ||
| Income and endowments from: | ||||
| Donations and legacies | 2 | 14,074 | 14,074 | - |
| Charitable activities | 3 | 319,672 | 319,672 | 397,982 |
| Total income | 333,746 | 333,746 | 397,982 | |
| Expenditure on: | ||||
| Charitable activities | 4 | 313,645 | 313,645 | 430,645 |
| Total expenditure | 313,645 | 313,645 | 430,645 | |
| Net income/(expenditure) | 20,101 | 20,101 | (32,663) | |
| Other recognised gains: | ||||
| Netmovement infunds | 20,101 | 20,101 | (32,663) | |
| Reconciliation offunds: | ||||
| Funds b/fwd | (14,635) | (14,635) | 18,028 | |
| Fundsc/fwd | 5,467 | 5,467 | (14,635) |
The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
All income and expenditure derive from continuing activities.
The notes on pages 12 to 20 form part of these financial statements
page 9
J.E.TS Centre Balance Sheet As at 31 July 2020
Company Number: 08139666
| Note | 2020 | 2019 | ||
|---|---|---|---|---|
| £ | £ | £ | ||
| Fixed Assets | ||||
| Tangible assets | 7 | 21,763 | 14,717 | |
| CurrentAssets | ||||
| Debtors | 8 | 16,342 | 17,554 | |
| Cash at bank and in hand | 9 | 80,351 | 8,211 | |
| 96,693 | 25,765 | |||
| Creditors: Amounts falling due within one | ||||
| year | 10 | 62,990 | 55,117 | |
| Net CurrentAssets/(Liabilities) | 33,703 | (29,352) | ||
| Total Assets Less Current Liabilities | 55,466 | (14,635) | ||
| Creditors: Amounts falling due aftermore than | ||||
| oneyear | 11 | (50,000) | = | |
| Total NetAssets/(Liabilities) | 5,466 | (14,635) | ||
| Funds ofthe charity | ||||
| Designated Funds | 21,763 | - | ||
| General Fund | (16,296) | (14,635) | ||
| Total Unrestricted Funds | 12 | 5,467 | (14,635) | |
| TotalFunds | 5,467 | (14,635) |
The notes on pages 12 to 20 form part of these financial statements
page 10
Company Number: 08139666
J.E.TS Centre Balance Sheet As at 31 July 2020 (cont.)
In approving these financial statements as trusteess of the company we hereby confirm the following: For the year in question the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
Directors’ responsibilities:
1) The members have not required the company to obtain an audit for its accounts for the year in question in accordance with section 476.
2) The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies’ regime.
The accounts were approved by the board of directors on 19 April 2021.
Christopher J McGrory, Trustee
The notes on pages 12 to 20 form part of these financial statements
page 11
J.E.TS Centre Notes to the Accounts For the year ended 31 July 2020
1 Accounting Policies
1a Basis of preparation
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) (effective 1 Janaury 2015) - (Charities SORP (FRS 102)), and the Companies Act 2006 and the UK Generally Accepted Accounting Practice as it applies from 1 January 2015.
J.E.TS Centre 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 note.
The accounts have departed fram the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for Charities applying FRS102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The functional currency used by J.E.TS Centre is the £ Sterling.
1b. Preparation of the accounts on a going concern basis
The charitable company has excess liabilitiies over assets, although the position has continued to improve. The trustees consider that J.E.TS Centre is a going concern given the continued support of funders.
1c. Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or 'revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
page 12
J.E.TS Centre Notes to the Accounts (cont.) For the year ended 31 July 2020
1. Accounting Policies (cont.)
id. Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment toa third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Childcare Provision
a) Costs of raising funds comprise the costs of commercial trading including the bar and coffee lounge and their associated support costs.
b) Expenditure on charitable activities includes the costs of staff, premises and other educational activites undertaken to further the purposes of the charity.
c) Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
1e. Funds Accounting
All income and expenditure together with gains and losess are allocated to a specific charitable fund.
Unrestricted funds are available to spend on activities that further any of the purposes of the charity.
Restricted funds are donations which the donor has specified are to be used soley for particular areas of the charity's work or for specific projects being undertaken by the charity. Further details of restricted funds together with their purposes are set out in note .
page 13
J.E.TS Centre Notes to the Accounts (cont.) For the year ended 31 July 2020
1. Accounting Policies (cont.)
1f. Tangible fixed assets and depreciation
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. cost includes the original purchase price, costs directly attributable to bringing the asset into its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.
Plant and machinery and fixtures, fitting, tools, and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is provided at the following annual rates in order to write each asset off over its anticipated useful economic life. A full year’s depreciation charge is charged in the year of acquisition and no depreciation is charged in the year of disposal. Depreciation is 20% of net book value.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the charitable company and the cost can be measured reliably.
Repairs, maintenance and minor inspection cots are expensed as incurred.
Tangible assets are dereognised on disposal or when no future economic benefits are expected. On disposal, the difference betwnee the net disposal proceeds and the carrying amount is recognised in the Statement of Financial Activities.
1g. Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1h. Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
page 14
J.E.TS Centre Notes to the Accounts (cont.) For the year ended 31 July 2020
1. Accounting Policies (cont.)
1i. Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
1j. Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
1k. Pension costs
The company operates a defined contribution plan for its eligible employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payment obligations. the contributions are recognised as an expense when they are due. Amounts not paid are shown in creditors or accruals in the balance sheet. The assets of the plan are held separately from the charity in independently administered funds.
2. Donations and Legacies
----- Start of picture text -----
2020 2019
£ £
CAF Capital grant 4,074 -
Sefton discretionary grant 10,000 -
14,074 -
----- End of picture text -----
page 15
J.E.TS Centre Notes to the Accounts (cont.) For the year ended 31 July 2020
3. Charitable Activity Income
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Fee income | 255,754 | 293,753 |
| Nursery Education | 63,918 | 104,229 |
| 319,672 | 397,982 |
4. Charitable Activities Expenditure
| Activities | |||||
|---|---|---|---|---|---|
| Undertaken | Support | Total | Total | ||
| Directly | Costs | 2020 | 2019 | ||
| £ | £ | £ | £ | ||
| Childcare | Provision | 298,455 | 15,189 | 313,644 | 430,645 |
| 298,455 | 15,189 | 313,644 | 430,645 |
5. Staff Costs
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Wagesand Salaries | 234,440 | 324,005 |
| Social Security costs | 8,487 | 13,270 |
| Pension costs | 5,298 | 4,421 |
| 248,225 | 341,696 |
There were no employees who had total remuneration benefits in excess of £60,000 per annum (2019: none).
The trustees received no remuneration during the year (2019: Enil). The trustees did not receive any expenses during the year (2019: £nil).
page 16
J.E.TS Centre Notes to the Accounts (cont.) For the year ended 31 July 2020
| 6. | Net Income forthe year | ||
|---|---|---|---|
| Net income is stated after charging: | |||
| 2020 | 2019 | ||
| £ | £ | ||
| Depreciation | 5,440 | 3,679 | |
| Bank interest payable | “ | 4,172 | |
| 7. | TangibleFixedAssets |
| Fixtures & | ||
|---|---|---|
| Equipment | Total | |
| £ | £ | |
| Cost /Valuation | ||
| At 1 August 2019 Additions |
27,408 12,486 |
27,408 12,486 |
| At 31 July 2020 | 39,894 | 39,894 |
| Depreciation | ||
| At 1 August 2019 | 12,691 | 12,691 |
| Fortheyear | 5,440 | 5,440 |
| At 31 July 2020 | 18,131 | 18,131 |
| Net BookAmounts | ||
| At31 July2020 | 21,763 | 21,763 |
| At 31July2019 | 14,717 | 14,717 |
page 17
J.E.TS Centre Notes to the Accounts (cont.) For the year ended 31 July 2020
| 8. | Debtors | ||
|---|---|---|---|
| 2020 | 2019 | ||
| £ | £ | ||
| Amounts falling due within one year | |||
| Trade debtors | 16,342 | 17,554 | |
| 16,342 | 17,554 | ||
| 9. | Cash at bank and in hand | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Cash at bank | 80,272 | 8,132 | |
| Cash in hand | 79 | 79 | |
| 80,351 | 8,211 | ||
| 10. | Creditors: Amounts falling due within one year | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Other creditors | 21,609 | 20,958 | |
| Othertaxes and social security | 5,832 | 2,635 | |
| Directors Loan | 35,024 | 31,174 | |
| Accruals and deferred income | 525 | 350 | |
| 62,990 | 55,117 | ||
| 11. | Creditors: Amounts falling due afterone year | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Coronovirus Bounce Back Loan | 50,000 | - | |
| 50,000 | - |
page 18
J.E.TS Centre Notes to the Accounts (cont.) For the year ended 31 July 2020
12. Unrestricted Funds
| Balance | Balance | ||||
|---|---|---|---|---|---|
| brought | Transfers | carried | |||
| forward | between | forward | |||
| 2019 | Income | Expenditure | funds | 2020 | |
| £ | £ | £ | £ | £ | |
| General Fund | (29,352) | 333,746 | (313,645) | (7,046) | (16,297) |
| Designated Funds | |||||
| Fixed Asset Fund | 14,717 | ; | - | 7,046 | 21,763 |
| TotalFunds | (14,635) | 333,746 | (313,645) | 5,466 |
page 19
J.E.TS Centre Notes to the Accounts (cont.) For the year ended 31 July 2020
13. Comparative Statement of Financial Activities Information
In order to comply with Financial Reporting Standard 102 which requires comparative information to be provided for all amounts, this note provides the necessary disclosure for comparative purposes of the Statement of Financial Activities for the year ended 31 July 2019.
----- Start of picture text -----
|||||||
|---|---|---|---|---|---|
|Unrestricted|Restricted|Total|
|Fund|Fund|Funds|
|£|£|£|
|Income|
|Comparative|activities|293,753|104,229|397,982|
|Total|income|293,753|104,229|397,982|
|Expenditure|on|
|Charitable|activities|326,416|104,229|430,645|
|326,416|104,229|430,645|
|Net expenditure|(32,663)|-|(32,663)|
|Other|Recognised|gains:|
|Net movement|in|funds|(32,663)|-|(32,663)|
----- End of picture text -----
page 20