2024-05-31-accounts - Happy Children Ltd

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

REGISTERED COMPANY NUMBER: 08084979 (England and Wales) REGISTERED CHARITY NUMBER: 1162937

TRUSTEES' REPORT AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024

FOR

HAPPY CHILDREN LTD

Xeinadin Ground Floor Citygate Longridge Road Preston PR2 5BQ

HAPPY CHILDREN LTD

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

		Page
Reference and Administrative Details		1
Trustees' Report	2	to	5
Independent Examiner's Report		6
Statement of Financial Activities		7
Balance Sheet		8
Notes to the Financial Statements	9	to	13

HAPPY CHILDREN LTD REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MAY 2024

Trustees	Faiza Akram
	Nagebah Hayel Muckbel Osi-Ef
Directors	Faiza Akram
	Nagebah Hayel Muckbel Osi-Ef
	Saeeda Aslam
Registered office	Greensville Trust
	Northdale Road
	Liverpool
	L15 4HT
Registered company number	08084979 (England and Wales)
Registered charity number	1162937
Independent examiner	Xeinadin
	Ground Floor
	Citygate
	Longridge Road
	Preston
	PR2 5BQ
Bankers	The Co-Operative Bank PLC
	Business Direct
	PO Box 250
	Skelmersdale, WN8 6WT
	Al-Rayan Bank PLC
	PO Box 12461
	Birmingham, B16 6AQ

Page 1

HAPPY CHILDREN LTD TRUSTEES' REPORT FOR THE YEAR ENDED 31 MAY 2024

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

Objectives and activities Objectives and aims Charitable Objects

The charity's objects are specifically restricted to the following: provide to provide education, care and development to pre-school age children and wider services to school age children e.g. after school and holiday clubs.

Additionally, an object is to encourage parents (and the wider local community) to recognise and support the needs of children as they develop from an educational, social, cultural and physical standpoint. The above will be delivered by:-

-Providing facilities and an appropriately qualified staffing complement to enable play, education and care for children (in particular vulnerable children) via training and support to parents enabling them to become fully involved and responsible in their child's activities

-Such services, activities and development will be available to all children regardless of race, culture, faith or disability.

-Providing facilities, services and support to families and the wider community in order that such individuals / groups can become actively engaged in the delivery of child(ren's) needs.

Aims and intended impact

To provide education care and development to pre-school aged children and wider services to school age children e.g after school and holiday clubs. Additionally our objectives aim to encourage parents (and the wider local community) to recognize and support needs of children as they develop from an educational, social, cultural and physical stand point.

Public Benefit

The primary purpose of the organization is to enhance the wellbeing and life chances of pre-school age children (in particular those children in disadvantage) regardless of race faith or disability. In support of this we will promote the education of the individual child needs to all those in direct contact (parents, carers) and the wider community within which the child is being brought up through its formative years.

Principal activities of the year

Working with quality improvement team to help improve and address issues in the early years sector south Liverpool
Support and completing induction for deputy manager and delivering any relevant training to her in regards to the ethos and vision of the setting.
Nursery manager appointed as represented for the private sector Early Years
Training gained for whole setting on Wellbeing course and NELLI PROGRAMME from educational department.
Out sourced FIRST AID TRAINING for all staff
Offered free childcare places to two mothers with mental health related issues from the local area
Signed postedand supported families struggling with financial support, (food bank parcels)
Improvements to garden wood resources such as mud kitchen, sand pit, gate leading to car park and ramp.
Focus on Staff wellbeing day out to strengthen teams relationship and improve team building skills + meals.
Delivered outreach childcare for 3 adult programmes (Bradford).
Workshops for parents

Page 2

HAPPY CHILDREN LTD

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MAY 2024

Objectives and activities Significant activities

There have not been any significant events since the year end.

Achievement and performance

Charitable activities

Efforts to enhance the outdoor environment have been ongoing, with the replacement of the pre-school mud kitchen, toddler sandpit, and gates leading to the car park, as well as the installation of a new ramp. Additionally, the floor in the pre-school area has been elevated with assistance from a joiner.

The Local Authority has conducted filming at the facility to aid in marketing and recruitment efforts for the early years sector. Since achieving an 'Outstanding' rating, the nursery manager is actively collaborating with local settings to elevate their services and disseminate exemplary practices.

Moreover, support is being provided to parents and carers of children with special educational needs, equipping them with the skills necessary to better support their children's development.

Financial review

Financial position

The nursery has seen an increase in both income and costs during the year. However, overall the nursery has an excess of income over expenditure in the year of £148,672. The nursery did have reserves brought forward of £616,744. At the end of the year the balance sheet is still showing a very healthy situation in that the nursery total funds of £765,416.

Incoming resources

The company received fees which amounted to income from the parents and from the city council by way of funding for the provision of the nursery. It also received an income from its new after-school provision for children between the ages of 4 - 7. The income from parents come in two forms either payment directly from the parents or by way of childcare vouchers from the parents employers. The fee income from the childcare vouchers is a tax efficient way for parents to receive their wages and pay for childcare as the vouchers are deducted before tax and national insurance.

Resources expended

The charity has tried to control its costs in the year but has rewarded the hard work and efforts of the staff. This has resulted in an increase in costs overall.

All Trustees give of their time freely and no remuneration or expenses were paid in the year. No Trustees or person connected with a Trustee received any benefit from use of our childcare facilities in the year on more favourable terms than available to the general public.

Investment policy and objectives

The Investment policy adopted by the Trustees is to maintain a high standard of the assets of the Trust and implement a programme of continual development to optimise their use in line with the Charity's objectives. In line with the nursery ethos and Islamic financing principles the nursery does not take loans that incur interest, the organisation aims to invest in a building through an outright cash payment some of our current profits will go towards the future purchase of a building.

Reserves policy

The trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets, which are the free reserves of the charity, should be between three and six months of general (unrestricted) operating costs and the trustees consider that this policy provides sufficient funds to cover wages, redundancy, management, support and administration costs and unforeseen expenditure and to be able to continue the activities of the charity in the event of a significant drop in funding, or business interruption. The free reserves at the 31st May 2024 of £765,416 (2023: £616,744) are within the above policy. The trustees are looking to build up reserves over the next few years to enable for the trust to purchase its own property.

Going concern

The trust constitutes a public benefit entity as defined by FRS 102. The trustees consider that there are no uncertainties about the trust ability to continue as a going concern over the next twelve months.

Page 3

HAPPY CHILDREN LTD

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MAY 2024

Future plans

The trustees constantly review the needs of the children and the nursery. We will continue to work closely with children services and safeguarding the children to ensure they receive appropriate care and education.

During the forthcoming year we will be considering:

Developing the outdoor area
To continue to offer low cost services to parents
To continue to offer more opportunities for the professional development of all staff
Offer opportunities to train students and volunteers wanting to work in the Early Years Sector
To work alongside the Quality Improvement Team to continue to develop our practice
The Liverpool City Council is launching a continual professional development (CPD) programme to help close the gap
of deprivation for disadvantaged programme. Our nursery has applied to be part of the programme.
To train an apprentice in level 2 Early Years Practice

The trustees acknowledge the rewards for continuing to support staff to gain further qualifications and skills, to enhance the existing workforce and provide high quality staff and work towards all staff having a full level three qualification.

Structure, governance and management

Governing document

The governing document of the Charity which is a company limited by guarantee is the Memorandum and Articles of Association of the company which was incorporated 28th May 2012.

Recruitment and Training of Trustees

The Charity's elected Trustees are appointed at the Annual Meeting of the Trust on the basis of nominations received from the Executive Committee to the Trust's specification concerning eligibility, personal competence, specialist skills and local availability. New Trustees are inducted into the workings of the Charity including Policy and Operational Procedures.

Organisational Management

The appointed and elected Trustees of the Charity are legally responsible for the overall management and control of the Trust. The members of the Board who meet on a minimum of two occasions annually carry out the work of implementing most of their policies. One additional meeting is held specifically to approve the budgets and finalise the Financial Accounts and Trustees report for approval by the annual meeting of the Board of Trustees. The Board works under the chairmanship of the Chair of the Trust. The Board has adopted the Code of Governance published by the National Governance Hub as a means of building governance capacity and skills.

The day to day running of the Trust is delegated to the Nursery Manager who reports to the Board at the bi-annual meetings.

In the interest of liaising with Ofsted the Nursery Manager is also a director of the nursery.

Risk management

A formal review of the Charity's risk management processes is undertaken on an annual basis.

The key controls used by the Charity include:

-Formal agendas for the Board of Trustees, Executive Committee and all sub- Committees;

-Detailed terms of reference for all Committees;

-Comprehensive strategic planning, budgeting and management accounting;

-Established organisational structure and lines of reporting;

-Comprehensive policies to ensure that all insurance risks are covered

-Formal written policies;

-Clear authorisation and approval levels and

-Vetting procedures are carried out for adults to safeguard the reputation of the Trust and to minimise the risk of inappropriate persons being accepted as employees or volunteers.

Page 4

HAPPY CHILDREN LTD

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MAY 2024

Structure, governance and management

Systems of internal control include:

-An annual budget approved by the Trustees

-Appropriate delegation of authority and segregation of duties

-Identification and management of risks

Through the risk management processes established for the Trust, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately safeguarded against material mismanagement or loss.

Approved by order of the board of trustees on 20 March 2025 and signed on its behalf by:

Nagebah Hayel Muckbel Osi-Ef - Trustee

Page 5

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HAPPY CHILDREN LTD

Independent examiner's report to the trustees of Happy Children Ltd ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 May 2024.

Responsibilities and basis of report

As the charity's trustees of the Company (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 the Company 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

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can 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:

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
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
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.

Farook Patel FCA

Xeinadin Ground Floor Citygate Longridge Road Preston PR2 5BQ

20 March 2025

Page 6

HAPPY CHILDREN LTD

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MAY 2024

----- Start of picture text -----
2024 2023
Unrestricted Total
fund funds
Notes £ £
Income and endowments from
Charitable activities 4
Charitable activities 362,010 256,858
Investment income 3 1,385 821
Total 363,395 257,679
Expenditure on
Charitable activities 5
Charitable activities 214,723 186,397
NET INCOME 148,672 71,282
Reconciliation of funds
Total funds brought forward 616,744 545,462
Total funds carried forward 765,416 616,744
----- End of picture text -----

The notes form part of these financial statements

Page 7

HAPPY CHILDREN LTD

BALANCE SHEET 31 MAY 2024

----- Start of picture text -----
2024 2023
Unrestricted Total
fund funds
Notes £ £
Fixed assets
Tangible assets 11 1,850 2,459
Current assets
Debtors 12 501,472 402,277
Cash at bank and in hand 263,139 223,012
764,611 625,289
Creditors
Amounts falling due within one year 13 (1,045) (11,004)
Net current assets 763,566 614,285
Total assets less current liabilities 765,416 616,744
NET ASSETS 765,416 616,744
Funds 14
Unrestricted funds 765,416 616,744
Total funds 765,416 616,744
----- End of picture text -----

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2024 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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

The financial statements were approved by the Board of Trustees and authorised for issue on 20 March 2025 and were signed on its behalf by:

Faiza Akram - Trustee

The notes form part of these financial statements

Page 8

HAPPY CHILDREN LTD

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

1. Accounting policies

Basis of preparing the financial statements

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

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

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

Fixture and fittings - 25% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

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

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.

Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Page 9

continued...

HAPPY CHILDREN LTD NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MAY 2024

2. Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

3. Investment income

2024
£
Deposit account interest
1,385
4.
Income from charitable activities
2024
Activity
£
Fees
Charitable activities
362,010
5.
Charitable activities costs
Direct
Support
Costs (see
costs (see
note 6)
note 7)
£
£
Charitable activities
202,745
11,978
6.
Direct costs of charitable activities
2024
£
Staff costs
170,886
Repairs and Maintenance
1,158
Rent
24,518
Postage and stationery
532
Toys, books and games
3,968
Food
1,683
202,745
7.
Support costs
Governance
Management
costs
£
£
Charitable activities
8,792
3,186
Support costs, included in the above, are as follows:
2024
Charitable
activities
£
Insurance
1,078
Telephone
164
Sundries
2,516
Recruitment costs
625
Cleaning
776
Training Costs
1,326
Computer costs
1,698
Depreciation of tangible and heritage assets
609
Accountancy
3,186
11,978

2023
£
821
2023
£
256,858
Totals
£
214,723
2023
£
138,520
908
26,000
321
5,850
2,202
173,801
Totals
£
11,978
2023
Total
activities
£
1,039
172
2,082
954
2,338
70
2,345
812
2,784
12,596

Page 10

continued...

HAPPY CHILDREN LTD

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

8. Net income/(expenditure)

Net income/(expenditure) is stated after charging/(crediting):

----- Start of picture text -----
|||| |---|---|---| |2024|2023| |£|£| |Depreciation - owned assets|609|812| |Hire of plant and machinery|1,158|908| |Other operating leases|24,518|26,000|

----- End of picture text -----

9. Trustees' remuneration and benefits

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

Trustees' expenses

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

10. Staff costs

----- Start of picture text -----
|||| |---|---|---| |2024|2023| |£|£| |Wages and salaries|167,555|137,698| |-| |Social security costs|2,097| |Other pension costs|1,234|822| |170,886|138,520|

----- End of picture text -----

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

----- Start of picture text -----
||| |---|---| |2024|2023| |16|16|

----- End of picture text -----

No employees received emoluments in excess of £60,000.

11. Tangible fixed assets

----- Start of picture text -----
||| |---|---| |Fixtures| |and| |fittings| |£| |Cost| |At 1 June 2023 and 31 May 2024|11,212| |Depreciation| |At 1 June 2023|8,753| |Charge for year|609| |At 31 May 2024|9,362| |Net book value| |At 31 May 2024|1,850| |At 31 May 2023|2,459|

----- End of picture text -----

Page 11

continued...

HAPPY CHILDREN LTD

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

----- Start of picture text -----
12. Debtors: amounts falling due within one year
2024 2023
£ £
Other debtors 500,495 401,495
Prepayments 977 782
501,472 402,277
13. Creditors: amounts falling due within one year
2024 2023
£ £
Social security and other taxes 1,082 8,937
Other creditors (2,017) 333
Accruals and deferred income 1,980 1,734
1,045 11,004
14. Movement in funds
Net
movement At
At 1.6.23 in funds 31.5.24
£ £ £
Unrestricted funds
General fund 616,744 148,672 765,416
TOTAL FUNDS 616,744 148,672 765,416
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 363,395 (214,723) 148,672
TOTAL FUNDS 363,395 (214,723) 148,672
Comparatives for movement in funds
Net
movement At
At 1.6.22 in funds 31.5.23
£ £ £
Unrestricted funds
General fund 545,462 71,282 616,744
TOTAL FUNDS 545,462 71,282 616,744
----- End of picture text -----

Page 12

continued...

HAPPY CHILDREN LTD

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

14. Movement in funds - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds General fund TOTAL FUNDS	Incoming Resources Movement resources expended in funds £ £ £ 257,679 (186,397) 71,282 257,679 (186,397) 71,282

15. Capital commitments

There were no capital commitments authorised or contracted for for the year ended 31 May 2024.

16. Related party disclosures

There were no related party transactions for the year ended 31 May 2024.

17. Company limited by guarantee

Happy Children Ltd is a company limited by guarantee and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

18. Control

The charity is under the control of the trustees.

Page 13