Company Registratlon No: 10156361 (Wales) Regist8r&d Charlty No. 1168892 THE FERN PARTNERSHIP ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Williams Ross Limit8d Chartered Accountants CARDIFF THE FERN PARTNERSHIP INDEX TO THE ACCOUNTS YEAR ENDED 31 MARCH 2024 Page Legal and Admlnlstratlve Infomatlon Trust88s' Annual Report Independent Ex8minefs Report statement of Financial Activili8S Balance Sheet Notes fomilng part of the financial statements 10-17 THE FERN PARTNERSHIP LEGAL AND ADMINISTRATIVE INFORMATION YEAR ENDED 31 MARCH 2024 Reglstered Office F8mdale Community School Rear of Excelsior Terrace Femdale CF43 4AR Managing Trustees Roy Maddox (Chair) Cerl J Jones Howard Burge Nalhan Prygodzlcz D8vid O Dean Micha81 Davies Kelvln Jones (re8lgn8d S November 2024) (appolnted 22 F8bruary 2024) Company Secretary Mich811e Coburn-Hughe8 Bankers Unity Trust Bank plc. Nine Brlndley P18ce Birmingham B12HB Accountants & Ind8pendent Ex8mlner8 Williams Ross Limlted 4 Ynys Brldge Court Gwaelod y Garth Cardiff CF15 9SS Charity Reglstration No. 1188892 Company Registration No. 010156361 THE FERN PARTNERSHIP TRUSTEES. ANNUAL REPORT YEAR ENDED 31 MARCH 2024 The Trustees present their annual report and financial slat8ments for th8 yaar 8nded 31 Mar¢h 2024 which are prepared to mèat thè rèquirements for a direclors. report and accounts for Companies Act purpos8s and th8 trust deed. The flnanclal stat8ments comply with the Charities Act 2011, the Companies Act 2006, the Mernorandum and Articles of Association, and Accountlng and Reportlng by Charities: Statement of Recommended Practic8 applicable to charities preparing thelr accounts in 8¢￿rdanCe wlth the Flnanclal Reportlng Standard appllcable In the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). structurej governance and managament Govarnlng Document The Fern Partnership {TFP) Is a charitabl8 company limlted by guarantee. It was incorporated on 29 April 2016 and reglslered as a chadty on 24th August 2016. The company was establlshed under 8 Memorandum of Assoclatlon whlch establlshed Its objects and powers and is governed under its Articles of Association. Organlsallonal Structuro The Trustees, who ere directors for Companles Act purposes, are re$ponslbla for the general control and man8gement of the charity together wlth the Company SeGretary. The Tru8tee8 glve thelr tlme freely and recalve no flnancial benefits other than the payment of expenses. Recrultment and appolntment of dlrector8 Trusteg vacancies had previously been filled via members of the School Govemors / School Management Team. In more r8C8nl y8ars th8 ch8rity has appointed new directors with specifiG skills, i.e. leg81 and HR, in order to complement the skill 88t of th8 Board with th8ir exp8rtisè. Inductlon and tralnlng of tru8t88s New Trustees are introduced to th6ir nèw rolè, given copies of approprlate documents and mat8rlal from the Charity Commission and hav8 th8 OPPOrtunlty to attend tralnlng that Is relevant to on their role aB 8 truBtee. Prlnclpal actlvlty and publlc bonèflt statamènt The Twstees believe that the Chadty provldes benefft to th6 public by helping to 8dvanc8 th8 education of puplls of Ferndal8 Community School by working to partneT5hip vAth staff, governors and th8 local community to raise funds for items and actlvitles over and above those whlch the local educatlon authorlty provldes. Flnanclal Revlew There was an operating surplus for the year under review of £4,077,1.e. an exce55 of income over expendlture (2023 - surplu5 of £5,538). R8vlew of the Year and Plans for Futurè Pèrlods Our management team has conslstently strengthened its capabllities, both In driving the organisation fornard and In managlng dally operatlons. The team Con￿nueS to demonstrate the skills and qualltles needed to navigate challenges eff&Gtlvely, ensurfng smooth operatlons even In these demanding times. Thelr dedlcation and leadership have been instrum8ntal to our contlnued success and growth. In March 2022, wo initiated dlscusslons wlth our landlord at Fuze regarding the potential purchase of the building. Over the course of 2023-2024, our Chief Executive and the Directors of Operations & Development worked diligently lo secur8 over £1 million in extemal funding for the purchase. The sale was successfully comp18ted on 9th February 2024. This project pres&nted significant challenges. but the successful acquisition of grant funding has resulted in an annual saving of over £40,000 in rent. Additionally. owning the propety 8nabl8S US to future-proof our organisation, wlth thè support of external funding for necessary improvernents. THE FERN PARTNERSHIP TRUSTEES. ANNUAL REPORT YEAR ENDED 31 MARCH 2024 Revlew of the Year and Plans for Future Perlods (continued) The Fem Partnership successfully secured two new Flying Start contracts for childcare settlngs In Tylorstown and Penrhys. During th8 t8nd8r process, the senior management team raised concerns about the viability of the Penrhys provision, prompling several Clarification letters and meetings. Despite Ihese concems, RCTCBC detennined that the tender could only be subrnitted as a package Includlng both Penrhys and Tylorstown. The contract was successfully secured and ComMen￿d in September 2023. Both sites operated for several months, but attendance at Penrhys remained Consistenlly low. To address this, an aGtlon plan was implernented. whlch included transporting childr8n by bus from P8nrhys to Tylorstown. how8v8r. uptak8 r8maln8d mlnlmal. Consequently. the Flylng Start provlslon at Penrhys was susp8nd8d In May 2024, with a rev18w planned for September 2025. Dovelopmentsl Project In April 2024, Senior Managers initiated negotiations to acquire a propety In Treorchy. The proposal alms to secure fundlng to advance our transformallonal strategy, whlch focuses on developlng a high-end dlsability inclusiv8 bistro with versatile, accessible training functions and spaces. Planning permission has b88n grant8d for change of us8 and a first-floor extension. The property is siluated on the High Strggt, which won the UK'S best high street in 2020. Collaboration with experiancgd architads and 8urveyors posltlons thls project as a k8y Gontrlbutor to the ongolng regeneratlon of Treorchys Hlgh Street. Treorchy is recognised for its cornrnunlty-led regeneratlon efforts, whlch revltallsed Its hlgh street and made It a vibrant centre for local commerce and social interaction, bul it is evident that this particular building is on the outskirts of th8 r8g8n8rated 8r8a coupl8d with thls arnbllious project would help Improve the flrst lrnpression and reg8n8ration of visitors to Treorchy town centr8, enhancing the overall 8ntry 8XP8ri8nc8 and contribuling to tha ongolng revltallsatlon of the ar8a. Our Chief Executive and the Dlrectors of Operations & Development have Inltlated dlscusslons wlth several funders, all of whom hav8 expressed strong support for the project. Cllmate Actlon In Septembor, our Dlreotor of Oper8tSons & Development was Invlted to Joln the Steerlng oroup of the RCT Cllmate Actlon Network. As a result, the organlsation embarked on Its NET ZERO journey with the support of EGIN peer mentors. Energy Efficiency Audits have been conducted on several properties, and an Action Plan is currently being developed to enhance the sustainability of our buildings by Improving their energy efficlency, whlch wlll help reduce costs. Fuzo Play & Cllmblng Centro Our c&ntre contlnues to thrlv8, reachlng unprecedented levels of actlvlty. We have expanded our offerings beyond the soft play area to include a wide range of programs, such as an After SGhool Club, Play Schemes, Baby & Toddler Groups, and themed aclivities. The online booking system ha5 been a significant success. streamlining worfrforce management. We recently upgraded to a faster. morg intuitive, and user-friendly system, which staff can now manage in-house. This upgrad8 has greatly improv8d èfficiency and 8nh8n¢ed our ability to deliver a more seamless service. The remalnlng reslllence govemment grants have been utlllsed to strengthen our buslness and establlsh a sustalnable Soclal Enterprlse. These funés have supporied the Development Officer role, which has become vital as the centre contlnues to grow. We malntsln strong partnershlps wlth local schools. particulaty Ysgol Henfelin. a special school for students aged >19 wlth dlverse needs. Through a current project. we offer voluntsry work experients to pupils aged 16 and over. THE FERN PARTNERSHIP TRUSTEES. ANNUAL REPORT YEAR ENDED 31 MARCH 2024 Fuz6 Play & Cllmblng Contro Icontlnuedl We were generously donated sensory room equlpm8nt, and we have slnce ralaunched thls provlslon. whlch has been a highly appreciated addition for our customers. Additionally, we have expanded our Additional L6aming Needs (ALN) provision, now offering more sessions for these children to fvrther support their devglopm8nt. F8rnda18 Communl Hwb Chlldcare 58rvlces Llttle Fems Ferndale continugs to grow and develop, wlth both of our chlldcare rooms conslstently busy and fvlly occupied. Our new Manager continu8s lo b& 8ffectiV8 and tha updated operation81 structure is working well in supportlng both staff and famllles. We secured the Spot Purchase Flying Start contract, whlch remalns a key element of our service offering. In additlon, we contlnue to provld8 Reglstered Education places, 30-hour chlldcar8, and sarve approxlmately 50 fee- paying children, ensuring a divgrse range of services that meet the needs of the local community. H¢)wever, we face ongolng Challenges due to changes In government fundlng for chlldcare, whlch remaln uncert8in, The potentlal impact on the fee-paylng 818m8nt of our provlslon Is yet to be fully understood. Additionally. the Increas8 In Natlonal Mlnimum Wage and National Insurance Contrlbutlons poses a concem for all chlldcare provld8rs, and w8 ar8 ¢ar8fully reviewing our financlal plannlng to manag8 these challenges effectlvely. Lolte Fundin and Su8t8inabilil We are incredibly grateful for the ongoing support provided by the Lottery Funding award of £350,000 ovgr five years. This funding ha5 bgen instrumental in helping us build a more resilient centre, enabling the employment of a Bu81ness Centre Manager and admlnlstrative support. These investments have contributed significantly to Improving the effici8ncy and sustainability of our operatlons. As the project Is sot to conclude In March 2026, our Chief Executive and Dlrector of Operatlons & D8velopm8nt hav8 Inits'at8d dlscussions with the Lott8ry and oth8r pot8ntlal funders to explore opportunities for continuation fijndlng. These conversatlons ar8 8SS8ntlal for ansurtng that we can contlnue to dellver hlgh-quallty seNices to th8 community b8yond the current fundlng cycle. ital Media Pro Our Digital Media prolect Is progressing well, with significant milestones achieved during the year. Sensory panels hav8 now b99n successfully Instslled in Ferndale. and the contraGt for the Installallon of a new interaclive board has b88n awarded. W8 antlClP8te receiving planning permission for the board by the end of December 2024. bringing us one step cIos8r to comp18tlng thls excltlng project. Govemm8nt Childcare Ex nsion Our Flying Start settings remaln busy whll8 upholding a high standard of service. Durtng r8c8nt CIW inspactions. all our settings were rated as excellent, refl8Ctlng the dedlcatlon and hard work of our Childcar8 Manager and staff. The Welsh Govemment's childcare expansion programme Includes the followlng: From Aprll 2024, working parents of 2-year-olds wlll be 8llglble for up to 15 hours per week of fre8 education and childcare. FroTn September 2024. working parents of chlldr8n aged 9 months to 3 years wlll be eliglble for up to 15 hours per week of free education and chlldcar8. This programrne is expected to further boost our numbers, whlch Is very positlve. How8vgr, the rlslng Natlonal Minimum Wage poses a significant challenge, and the upcomlng Increase In Natlonal Insurance Contrlbutlons (NIC) from April 2025 is likely to have a devastating impa(X on chlldcare providers. THE FERN PARTNERSHIP TRUSTEES. ANNUAL REPORT YEAR ENDED 31 MARCH 2024 Revlew of the Year and Plans for Future Perlods {continued) Our senior managers have proactively engaged with Assembly Members. local Counclllors. and other stskeholders to highlight the pot8nt181 effects of these govemm8nt changes. As a result of this local campaign. RCTCBC has agreed to revisit our grants and fees to accommodate thes9 challenges. We have already seen an Increase In our Flylng Start grant paymGnts thanks to these efforts. R18k8 and uncartalntle$ Our primary risk r8mains th8 ongoing incr8as8s in th8 National Minimum Wag8 (NMW) and National Insuranc8 Contrlbutlons {NIC). coupled wlth government fundlng that has not kept pace wlth rlslng costs. These flnancSal pressures are significantly imp8Ctlng childcare provlder8. forclng many communlty organlsatlons to close thelr operatlons. Additionally, Communities forwork funding will and on Aprtl 1, 2025, promptlng our Communlty Staff to seek alternatlve employrnent by Ihe summer of 2024. Desplte thls challenge, we contlnue to operate the popular Afler School Club at Maerdy Hub, funded by the Local Authority. Following a comprehensive options appraisal, it was decided that the Hub would transition to community managem8nt from Aprfl 2025, wlth Th8 Fem PartnershSp contlnulng to provld8 the After School Club. Whll8 fundlng for actlvltl8s remalns a rlsk, The Fem Partnershlp (fFP) has 8 strong track record of Securlng exlernal funding. We have robust controls in place to closely monitor costs and the term8 and conditionB of any grantfundlng. 8nsurfng wa maxlmlz8 811 avallable resoums. R888rvès Pollcy The Fern Partnershlp (TFPI currently relies on grant Income to sustslnlts 8Ctlvltle5, as earned Income alone would not be sufficient to continue op8rations. Therefore, If there were 8 reduction in grant funding, TFP would face the risk of closure. To mltigate thls rlsk, the Board of Trust88s has agr88d to malntsln a lev81 of flnanclal reserves to 8nsur8 that core operatlonB can contlnue for a perlod of thre8 months, should fundlng dlfflwltles ar18e. The board's prfmary Concerns are to ensure that.. Staff can contlnua worklng, wlth a focus on securfng new fundlng Servlce users are supported and transltloned to other servlce provld8rs ForeG8St8d spending 8nsur8S that funding is available until at least March 2025. How8V8r, In th8 @vent of fijnding difficulties, it has been calculated that reserves of £150.000 would be required to continue operations while altemative funding is pursued. Thesa reserves should b8 built up from unrastrlcted {88m8d} Income. Tha level of reserves will b8 calculated and monitored 8V8ry six months by th8 Board of Dir8Ctors. This policy will b8 r8V18w8d annually and wh8n8v8r th8re ar8 slgnlficant chang8s In staff hours or numb8rs Rasponslbllltlas of tho Trustees The charlty trustees (who are alsc the dSrectors of the charftable company for the purpo888 of company law) ar8 responsible for preparing a trustees, annual report and financial statements In accordance wlth applicable law and Unlted Kingdom Accountlng Standards (UnSted Klngdom Generally Accepted Accountlng Practlce). Company law requires the TrusteeB to prepare financial statements for each financial year which give a true and fair view of the slate of the affairs of the charitable company as at the balance sheet date and of its incoming resource5 and application of resources. including income and expenditure, for the financial year. THE FERN PARTNERSHIP TRUSTEES. ANNUAL REPORT YEAR ENDED 31 MARCH 2024 Responsibiltti88 of thè Trust88s (cor)tinuad) In preparing those financial stalements. th8 management committee should follow best practice and.. select sultable accountlng pollcles and then apply them consistently., observe the method8 8nd principles in the Chartties SORP; make judgements and estimates that are mson8bl8 and prudent., state whether applicable UK accounting standards have been followed, subject to any material departures dlsclosed and explalned In the financial statements; pr8par8 flnanclal statements on the golng concem basls unless It Is Inapproprlate to assume that the oharitable company will continue on that basis. The Trustees are responslble for keeplng adequate accountlng records that are sufficlent to show and explain the company's transactions and disclose with reasonable acGuracy at any tlme the flnanclal posltlon of the company and that enable theTn to ensure that the flnancial statements comply with the Companies Act 2006. The Trustees ar8 also r8sponsib18 for saf8guarding thè assats of tha charitable company and hence for taking r8asonable steps for the prevention and d6t8Ction of fraud and other irr8gulariti8S. 8mall compan188 provlslon $tat•mont This report has been prepared in accordance wth the sm811 compan188 reglme und8r Compan188 Act 2008. Signed on behalf of the Trustees A(.,Id¥c Roy Maddox Chalrp•rson ,/,,/2/P Date THE FERN PARTNERSHIP INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES YEAR ENDED 31 MARCH 2024 I report on the accounts of the charity for the year ended 31 March 2024, which are set out on pages 8 to 17. Respective responslbllttles of trustees and 8xamlner The charity's tnjstees (who are also the directors for the purposes of company law) are responslble for the preparation of the accounts In accordance wlth the requirements of the Companl8s Act 2006 {the 2006 Act). The charity's Injstees consider that an audlt Is not required for this year (under section 145 of the Charftles Act 2011 (th6 2011 Act)) and that an ind8P8nd6nt 8xamination is n88d8d. It 18 our responsibility to: examlne the accounts (under section 145 of the 2011 Act): to follow th8 procedures181d down In the Ganer81 Dlrectlons given by the Charfty Commlssloners (und&r section 145(5){b) of the 2011 Act). and to state whether particular matters have com8 to our attention. Bas18 of Indopendent examlnef8 report My examinatlon was Carried out In accordance wlth the General D1￿CtIonS given by the Charlty Commlssloners. An examlnatlon Includes a revlew of the accountlng records kept by the charlty and a comperison of the accounts presented wlth those records. It also includes considor81ion of any unusual Items or disdosures In the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required In an audlt, and consequently I do not express an audlt oplnlon on the vlew glven by the accounts. Your attention Is drawn to the fact that th8 charfty has prepared th8 8ccount8 In accordance wlth the Accountlng and Reportlng by Chartlles.. Statement of Recommended Practlce appllcable to charltles In the UK and Republlc of Ireland preparing their acwunts in 8¢cord8nce with the Financi81 Reporting St8ndard (FRS 102) Issued on 16 July 2014 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. 5 understand that thls has been done In order for the accounts to provlde a twe and falr vlew In accordance wlth the Generally Acoepted Accounllng Practlce effectlve for reportlng periods beglnnlng on or 8ft8r 1 January 2015. Independent examlner's statement In connecllon with our examination, no matter has come to my attention: (1) whlch glves me reasonable cause to belleve that In any materlal respect the requlrements to keep 8ccountlng records In accordance with section 386 of lh9 2006 Act, and section 130 of the 2011 Act; and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2006 Act and 2011 Act have not been met- or (2) to whlch, In my oplnlon, attentlon should be drawn In order to enable a proper understandlng of th8 accounts to be reached. att8ll for and behalf of Wllllams Ross Llmlted Chartered Accountants 4 Ynys Bridg8 Court Gwaelod Y Garth Cardiff CF15 9SS Date THE FERN PARTNERSHIP STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2024 2024 Note Unrestrlcted Restricted 2023 Total Tolal INCOME Grants Income from charftable actlvltles Incom& from trading activities 0th8r Income Total Income 3a 3b 34,121 183,761 220,255 401,018 819 153 176,017 210.138 163.761 220,255 401,016 995.170 279,155 207.448 194,857 279,517 960,977 3d 176,017 EXPENDITURE Expenditure on charitable activities Expendlture on tradlng 8Ctlvities Total 8xpandllur8 578,520 237,733 816.253 174,840 753,360 237,733 991,093 720,920 234,519 955,439 174,840 Not Incomol (oxpendlture) 2,900 1,177 4,077 5,538 Transfer between funds Not movement In funds 3,376 (476) 4,553 4,077 5,538 Totsl funds brought forward 156,933 5,357 162,290 156,752 Total funds carrlod forward 156,457 9,910 166,367 162,290 Th8 8tat8m8nt of flnancl81 actlvltl88 includes all gains and lossas racognised in the poriod. All Income and expendlture d8rlv8 from contlnulng actlvitles. THE FERN PARTNERSHIP BALANCE SHEET YEAR ENDED 31 MARCH 2024 Notes 2024 2023 Flxod as88t8 169.026 67,017 Current assets stock Debtors and prepayments Cash at bank and In hand 4,441 263,560 89.603 357.604 4,238 70.143 162,697 237.078 La88: Curranl Ilabllltlè8 67,809 39.403 Nat ¢urr8nt a880ts 289,795 197,675 458,821 264,692 Long torm Ilabllltlas (292,454) {102,402) Total net assets 166 367 162290 Representlng: Fund8 Unrestrtcted funds Restricted funds 13 13 156,457 9,910 156,933 5,357 Total fund8 168.387 162,290 The company w88 entitled to exemption from audtt under $477 of the Cornpanles Act 2006 relating to 5mBII companles. The members have not required the company to obtain an audlt In accordance wlth sectlon 476 of tha Companies Act 2006. The directors acknowledge thelr responslbllities for complylng wlth th8 requlrem8nts of the Companies Act wlth respect to accountlng records and preparatlon of accounts. These account8 hav8 b8en prepared in accordanc8 with the provisions appllcab58 to small companles subj8Ct to the small companies r8gime and in accordanc8 wlth FRS102 SORP. Approved by the managing trustees on ....... . .and slgned on thelr behalf by: Roy Maddox Chairporson COMPANY REGISTRATION NUMBER: 10156361 THE FERN PARTNERSHIP NOTE TO THE ACCOUNTS YEAR ENDED 31 MARCH 2024 1. Accountlng Pollci08 a) Basls of preparatlon Th8 financial stat8m8nts hav8 been prepared in accordance with Accounting and Reportlng by Charltles: statement of Recommended Pracllce appllcable to charltles preparlng thelr accounts In accordance with the Flnanclal Reporting Standard appliG8ble in th8 UK and Republic of Ireland (FRS 102) (effective 1 January 20151- (Charities SORP