Company Registi'ation number 10156361 Charity Registi'ation number 1168892 The Fern Partnership Company limited by guarantee Annual report and financial statements for the year ended 31 March 2025
The Fei'ii Partnership Contents Page TSleeS, annual report Auditors, report 8-10 Statement of Financial Activities li Balance sheet 12 Cash flow slalement 13 Notes to the financial statemeJ]ts 14-23
The Fern Partnership Legal and administrative information chIlable Company Lin]ited by Guarantee Charity registration number 1168892 Company registration number 10156361 Registered office Ferndale Hwb North Road Ferndale CF43 4PS Website www.fernpartnership.co.uk Trustees who served during the year Kelvin Jones David O Dean Michael Davies Howard Brnges Nathan Prygodzicz Heather Nichollas Chair, appointed 22 February 2024 appointed l April 2025 Secretary Michelle Coburn-Hughes Auditors RH Jeffs 2nd Rowe Chartered Accountants 27128 Gelliwastad Road Pontypridd CF37 2B W Bankers Unity Trust Bank plc Nine Brinfley Place Birmingham BI 2HB
The Fern Parthership Trustees, Annual Report for the year ended 31 March 2025 Legal and Administi'ative Infoi'mation The charity is a company limited by guaraTrlee and has no share capital. Ils members are the trustees, who also serve as the diitctors for the purposes of company law. This repoTt, which includes the financial slaternents for the year ended 31 March 2025, has been prepared in accordance with Part 8 of the Charities Act 2011 and the Companies Act 2006, and constitutes both the Trustees, Report and the Directors, Report for slalutory purposes. Objeetives and Aetivities The charitable company's principal objectives, as set out in its Memorandum and Articles of Association, are.. A. The advancetnent of education of the pupils of Ferndale community school by raising funds for items and activities over and above these which the LEA provide for,. B. The promotion for the benefit of the public of urban or rural regeneration in areas of social and econon)ic deprivation (and in particular in the uppeT Rhondda Fach by all or any of the following means.. . The advancement of education, training or retraining, particularly among llnemployed people, and providing unemployed people with work experience. ii. the provision of assistance, advice or consultancy in order to provide training and eTnployment opportunities; iii. the maintenance. improvement or provision of public amenities in relations to charity assets., iv. The provision of recreational facilities for the public at large or those who by reason of their youth, age, infirnjity or disablement. financia] hardship or social gnd economic ctrcumstances. have need of such facilities. The protection or conservation of the environment. vi. the provision of public health facilities and childcare. vii. the promotion of public SPLfety and prevention of crime. viii. Such other means as may from time to time be detetmined subject lo the piior written consent of the charity commissioners for England and Wales. Public Benefit The trustees confinn that they have complied with their duty under section 17 of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefit. They are satisfied that the Chlty'S activities during the year have clearly fi]rthered its cha'itable PuOseS and delivered identifiable benefits lo the public. In particul, the Charity has advanced the education of pupils at Ferndale Conununity School by working in partnership with staff, governors and the wider coJnmunity to raise funds for items, initiatives and activities that fall outside the provision made by the local education auihorily. Through this support, the chitY has contributed lo ellhand educational opportunities and the wider wellbeing of pupils. Page I
The Fern Partnership Trustees, Annual Report for the year ended 31 Mareh 2025 Achievements and Perforrnance Dui'ing the year, the charity delivered the following outcomes and impacts in furtherance of ils charitable objectives: Strong Leadership and Opeiational Groivtji Our roanagement team has consistently strengthened ils capabilities, both in driving the organisation fonvard and in managing daily operations. Their dedication, skills, and leadership have been instrumental in ensuring smooth operations and sustained growth during challenging titnes. Expandiiig Our Social Enterprise Model In February 2024, The Fem Partnership completed the purchase of Fuze Soft Play & Climbing Centre. The resulting savings from rental payments have been cClaI in maintaining our financial viability. This acquisition reflects a wider trend in the third sector: the need to develop Social Enterprises that can generate income to safeguard and sustain charitable services. Fuze Soft Play & Clirnbing Centre Fuze has continued to thrive, reaching unprecedented levels of activity. Beyond soft play, we now deliver a wide range of prograrnmes. including After School Clubs, Play Schemes, Baby & Toddler Groups. Additional Learning Needs (ALN) sessions, and themed events. Government resilience grants have been vital in strengthening our business and supporting the Development Officer role, which has becorne increasingly crucial as the centre grows. We continue to work in strong partnership with locaI schools, pofi1culIY Ysgol Hen Felin. offering volllntJry work experience placements for pupils aged 16 and above. Recent donations, such as a baby soft play frame, have further e]ched the experience for our youngest families. Additionally. we launching a Reuse & Recycle Shop on the first floor. supported by external fvnding, which will add to the centre's sustainability goals. Fei'Kdale Communty Hwb - Childca7'e Senic¢s Little Fems Ferndale continues to thrive as a mixed chIldc setting. combining Flying Start funded places with fee-paying provision. Both rooms reJnain consistently busy, supported by a strong operational structure and effective management. We continue to deliver a wide Tange of childcare options. including Spot Purchase Flying Start, Registered Edllcalion places, 30-hour provision. and care for around 50 fee-paying children. However, the sector continues to face challenges due to changes in government funding and tising costs linked to the National Minin]um Wage and National Insurance contributions. In June 2024, we were invited to the Houses of Pai'liament to discuss funding mechanisms for childcare. These discussions ffinforced that the approach we are talung at The Fern Partnership - operating as a Social Enterprise that PriOLitises sustainability and community impact- reflects the direction in which the Early Ye8J's sector wishes to progress. Page 2
The fiern P2rtnei'ship Trustees, Annual Report for the year ended 31 March 2025 Digilalmedia Project Although setbacks with land surveys required us to reapply for planning permission, we are making progress. Solar panels have been installed al Ferndale, reducing energy usage, and a contract has been awarded for the installation of a new interactive board. Govei'niiient Childcare Expansion All of our Flying st selliiigs continue to operate at full capacity and have maintained excellent Standds. with all receiving lop ratings in recent CIW inspections. The Welsh Government's phased expansion of funded childcare provision for Iwo-year-olds presents both opportunities and challenges. While demand is increasing, the additional care needs of these children, alongside rising staffing and food costs, place significant pressure on Tesources. Our senior managers continue to engage proactively with MeJnbers of Parliament, Assembly Members, Councillors. and stakeholdei's lo influence funding levels. RCTCBC has responded positively to these discussions, offeting increased support. Commiinity Engageinent Although Comlnunilies for Work funding ended in June 2025, we continue to deliver the popular After School Club at Maerdy Hub. now managed under community leadei'ship since April 2025. This has been highly Success1, with the Hub in regular use. We have worked closely with Keep Wales Tidy on our Net Zero journey and partnered with locaI schools and third sector org8J]isations lo deliver sustainability-focused activities. In addition. our collaboration with Cardiff City Football Foundation is creating new opportunities to deliver health and wellbeing sessions for f8Jnilies across Femdale Hub and Fuze. VolT4nteei' Contribution Volunteers continue to play an essential role in the charity's operations. During the year, approximately 10 volunteers contributed an estimated 1,200 hours, supporting Community activities, for example. Mens Shed Knit & Knatter. Impact Reporting The trustees recognise the importaT]ce of demonstrating clear and measurable impact across the Fern Hwb's ¢hildcaL'e, family support, employment and community progranunes. An internal monitoring framework is used to track outcomes such as childcare occupancy levels, Flying Start attendance, ALN support sessions, con)munity hub activity, and participation in le3Thing, wellbeing and family engagement initiatives. This enables the In]stees lo assess the effectiveness of individual services, identify trends. and ensure that esources are dtrecled toWd areas of greatest need and benefit. Regular impact reports are reviewed by the board, providing assurance that progran]mes are meeting theii. intended objectives, that grant-funded activities are delivering against agreed outcomes, and that the charity continues to achieve positive results for children, families and the wider comn]unily. This approach supports transparency, strengthens accountability lo funders and partners, 2nd infotms ongoing service improvement and fuluie planning. Page 3
The Fern Partnership Trustees, Annual Report for the year ended 31 March 2025 Financial Review The Statement of Financial Activities for the ye. is sel out on page 11 of the financial statements. The charity's total income for the year was £1,298,127, compared with £995,170 in the prior year. Expenditure amounted to £1.240,648 (prior year £991,093), resulting in a net movement in funds of £57.479 (prior year £4,077). The overall financial position remains robust, with unrestricted reserves 2nd liquidity maintained at a prudent level. The balance sheet reflects continued investment in the charity's operational infrastrllcture, with fixed assets increasing in line with planned capital improvements. Current assets provide adequate liquidity to meet short-tern] obligations, while creditors priMllY relate to normal operational comrnitments and grant-nded project cycles. The year-end position supports the trustees, reserves policy and aligns with the charity's non-complex investment approach, providing a stable platfom for managing financial risk and sustaining future service delivery. Reseives Policy The tn]stees have adopted a reserves policy aimed at maintaining unrestricted reserves at a prudent proportion of core operating costs. At the year-end, unrestricted reserves amounted to £132,926, equivalent to approximately two months of expenditure. The management team will undertake a detailed review of reserves and projected costs to reassess the appropriate level going forward. As the charity remains signific8lllly dependent on grant funding, earned income alone would not sustain operations. A reduction in grat income therefore represents a material risk. To mitigate this, the tnistees consider that maintaining three rnonths of operating reserves is essential to ensure continuity of staffing and to allow service users to be supported or safely transitioned should funding difficulties arise. The trustees will review and monitor the target level every six months, with a full annual policy review or earlier where operational Ch?geS require it. Principal Riskx and Uncertainties The trustees have carried out a Comprehensive review of risks and uncertainties. including those arising from f8cial pressures, cyber security, environmental factors, and governance tnatters. The Chty'S primyry risk remains the ongoing increases in the national misjimum wage and national insurallce contributions, coupled with govemment funding that has not kept pace with rising costs. These financial pressures are significantly impacting childcare providers, forcing many community organisations to close their operations. While funding for activities remains a risk, The Fern Partnership has a strong Irack record of securing external fnd1llg. we have robust controls in place to closely tnonitor costs and the terms and conditions of any grant funding, ensuring we maximize all available resources. Going Concern The trustees confm that they have assessed the charity's ability to continue as a going concern for at least twelve months from the date of approval of these financial statements and satisfied that the Charity has adequate resources lo continue ils operations. Investineiit Policy The charity does not hold material investments and therefore operates a non-cotnplex investment policy focused on capital preservation and liquidity. Page 4
The Fern Partnei'ship Ti'ustees, Annual Report foi. the year ended 31 March 2025 Fllndraising Statement The charity does not engage pi'ofessional fundraisers or coullnercial participators. All fundraising activities 'e carried out by staff or volunteers in accordance with the Fundraising Regulatoi's Code of Fundraising Practice. The ChltY rnonitors ils fundraising activities lo ensure compliance with recognised standd$. No complaints weTe received duiing the year, and the trustees are satisfied that appropriate &i-angements are in place to protect the public, including vulnerable peisons, from undue pressure or persistent fundraising approaches. Sustainability and Envlronmental, Social and Governance Reporting The trustees remain firmly commilled to enhancing the charity's performance in Sustainability aJ]d ESG (Environmental, Social and Governance) Reporting. Throughout the year, steady progress has been made towards our Net Zero ambitions. including the introduction of energy-efficient technologies across the estate, the promotion of sustainable practices within childcare and community settings, and active participation in the RCT Climate Action Network. Looking ahead, the trustees intend lo ensure that ESG principles are llY embedded within all significant operational and strategic decisions. This will encompass strengthened procurement standards. targeted waste-reduction measures, improved carbon-tracktng processes. and inclusive approaches to community engagement. These steps support our long-tern] objective of operating responsibly, rninimising environmental impact, and delivering services that continue to benefit the community in an ethical and sustainable way. The trustees also reaff their responsibility lo operate with due regard for environmental, social and governance factors. Our commitment to the Net Zero pathway remains undiminished. The Director of Operations & Development continues lo represent the Fern Partnership on the R.C.T. Climate Action Network steering group, helping to develop Strong and ConstclIVe partnerships. As a result of this engagement, together with detailed energy-efficiency audits. the charity has successfully secured funding for a rallge of improvements across its sites, including the installation of solar panels, destratification fans, and LED lighting. We are also actively seeking further fi]nding lo extend these measures lo our forthcoming TreoT¢hy development. Plans for Future Periods The trustees intend to build on the progress achieved during the year and have identified a number of key prtorities to support the charitys continued development and long-terni sustainability. Lottery Fundtng aud Sustainability The trustees remain grateful for the National Lottery Community Fund s award of £350,000 over five years. This investment has been central lo the development of the Con]munity Hub piojecl in Ferndale, enabling the recruitment of a dedicated Business Centre Manager and administrative staff to deliver the PToject effectively and to strengthen operational capacity. As the Cuent funding period concludes in mch 2026, discussions have already commenced with the Lottery and other potential funders lo explore conlinuaiion funding and secure the long-term sustainability of the charity's work. Page 5
The Fei'n Partnership Trustees, Annual Report for the year ended 31 March 2025 Developmenlal Project - Treorchy Regeiieration In July 2024, the charity purchased an unused property on Treorchy High Street. Although the towTh is recognised for its aWd-wIllnlng ¢omn]unity-led regeneration, this pioperty lies on the edge of the revitalised area ld presents an opportunity to create an improved gateway to the town centre. The trustees, proposal is to transfolln the building into a vibrant, real-world learning environment that prioritises education, training and upskilling. Through practical experience in a welcoming hospitality setting, partieipanls will gain skills that support long-tern] employability. The project is designed to be inclusive, offering flexible community spaces that ensure accessibility for all. This initiative is expected to strengthen the Charity's social enterprise activity, reduce dependence on grant income and support greater financial self-sufficiency in the future. The charity is currently awaiting final approval of its application to Rhondda Cynon Tafs Large-scaie Property Improvement Grant. Subject to approval, works are anticipated to cottLmence in September 2024. The trustees remain committed to developing these initiatives and to pursuing opportunities that will enhance the charity's impact aThd ensure the long-lerrn strength and resilience of its operations. Structure, Governance and Management The charity is governed by ils Memorandum and Articles of Association and is constituted as a company limited by guarantee. The board of trustees (who are also directors for company law purposes) is responsible for govem8n¢e. risk management. ad strategic direction. Day-to-day operations are delegated to the Chief Executive and senior management team. Governaiice and Committees The board operates through sub~committees. inclllding Finance & Audit, Risk, and Remuneration, which report regularly to the trnstees. Trustee Reci'uitnienl and Training Trustee vacancies were historically fdled through members of the School Governors or School Management Team, but in recent years the charity has broadened its approach by appointing diTectors with specific professional expertise-such as legal and HR-ensuring the B0d has an appropriate balance of skills. New trustees receive a structured induction covering the ChIty'S governance, policies and regulatory responsibilities. supported by key documents and Charity Commission guidance. and all trnstees have access to ongoing training and briefings to ensure their knowledge and skills remain Cllrrent. Remuneration Policy The trustees deterniine the remuneration of key management personnel based on external benChmk1rtg and perfoimance evaluation, ensuring fairness and compliance with the ch1¢y,S remuneration framework. Trustees, Remuneration No trustee reiVed remuneration or benefits during the year. Expenses Teimbursed to trustees are disclosed in the notes to the financial statements. There were no related party transactions requiring disclosure. Page 6
The Fern Partnership Ti'ustees, Annual Report for the year ended 31 March 2025 Statement of Trustees, Responsibilities The Iruslees (who also the directors of the ChlIable company for the puiposes of company law) are responsible for preparing the Trllstees, Report (including the Directors, Report) and the financial Statements in accordance with applicable law and United KingdoTn AccountitLg Standards (United I(ingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which Eive a true and fail view of the state of affairs of the charitable cotnpany and of the incoJning resources and application of resources, including the income and expenditure, of the charitable company for that period. IT] preping these financial statements, the trustees are required 10: a) select suitable accounting policies and apply them consistently; b) observe the methods and principles in the Charities SORP; c) make judgments and accounting estimates that a reasonable and prudent. d) state whether applicable UK Accounting Standards have been followed, subject to any rnalerial departures disclosed and explained in the financial stateTnents. e) prepare the financial statements on the going concern basis unless il is inappropriate to presume that the charity will continue to operate. The trnslees ate responsible for keeping adequate accounting records that are sufFicient to show and explain the chItable company's transactions and disclose with Teasonable accuracy al any time the financial position of the charitable company and enable them to ensure that the fjnancial slalements comply with the Companies Act 2006. They are also responsible for safegllarding the assets of the ¢ornpJlly and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The report has been prepared in accordance with the provisions applicable to companies subject lo the small companies, regime. Approval This report was approved b ard of Trustees on the 19 November 2025 and signed on its beha]f by.. Kelvin Jones Chair The report has beeJJ prepared in accordance with the provisions applicable to charitable companies subject to audit under the Companies Act 2006. Page 7
Independent auditors, report to The Fei'n Partnership? Company limited by guarantee, under Section 449 of the Companies Act 2006 Opinio We have audited the financial sta¢ements of The Fem Partnership (the 'charitable company,) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and notes lo the financial statements, including a summary of significallt accounting policies. The Financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK (United Kingdom Generally Accepted Accounting Practice). In our opinion. the fin8claI statements: give a true and fail. view of the slate of the ChItable company's affairs as at 31 March 2025 and of ils incoming resources and application of resources, including its income and expenditure. for the year then ended. have been properly prepared in accordance with United Kingdorn Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with tnternational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those StanddS are further described in the Auditor's responsibilities for the audit of the financial statements section of OUT report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical standd, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlng to going coneern In auditing the financial statements, we have concluded that the trnstees, llse of the going concern basis of accounting in the preparation of the fmancial stalernents is appropriate. Based on the work we have perfonned, we have not identified any material uncertainties relating to events or conditions that. individually or collectively, tnay cast significant doubt on the entity's ability to continue as a going concern for a period of at least twelve months from when the financial statements 8re authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other inforniation. The other infonnation comprises the infonnation included in the T.ruSt, Annual Report other than the financial statements and our auditor's report thereon. Our opinion on the fmancial statements does not cover the other information and, except to the extent otherwise explicitly stated in our repor¢ we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility s lo read the other information and. in doing so, consider whether the other infomlation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be MatlalIY misstated. If we identify such material inconsistencies or apparent tnaterial misstatements, we are required to determine whether there is a material misstatement in the fjnancial statements or a material n]isslatement of the other inforn]ation. If, based on the work we have perfomied, we conclude that there is a material misstatement of this other information, we are requiied to report that fact. We have nothing to report in this regard. Page 8
Independent auditors, report to The Fern Partnership? Company limited by guarantee, under Section 449 of the Companies Act 2006 Opinions on other mattel's presci'ibed by the Companies Act 2006 our opinion, based on the work llndeTlaken in the course of the audit.. the infornalion given in the trustees, report, which includes the directors, report prepared for company law purposes, for the financial year for which the financial statements are prepared is consistent with the fiJ]ancial statements. and the directors, report included within the tt'ustees, report has been prepared in accordance with applicable legal requirements. Matters on whieh Trve are required to i'eport by exception the light of the knowledge and understanding of the charitable company and ils enviionment obtained in the course of the audit, we have not identified material rnisstatements in the Iwsiees, report. We have nothing lo report in respect of the following mattel's where the Companies Act 2006 requires us lo report to you if, in our opinion.. the chitY has not kept adequate accounting records. or returns adequate for our audit have not been received from branches not visited by us. or the fin8nciaI StateentS are not in agreement with the accounting records and returns. OT certain disclosures of Itustees, remuneration specified by law Hre not made. or we have not received all the infomaiion and explanacions we require for our audit. Responsibilities of trustees As explained more llY in the trustees, responsibilities statement the trusle&s (who are atso the directors of the charitable company for the putposes of company lawl are responsible for the preparation of the fjnancial statements and for being satisfied that they give a tn]e and fair view. and for such internal control as the trustees delern)ine is necessary to enable the preparation of financial statements that free from material tnisstatement, whether due to fraud or eOr. In preparing the financial statements, the trUseS are responsible for assessing the charitable cotnpany's ability to continue as a going concern, disclosing. as applicable, matlei's related to going concem and using the going concern basis of accounting unless the trustees either intend to liquidate the chajitable company or lo cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objective is to obtain reasonable assurance about whether the fInancial statements as a whole ate free from mateiial rnisstatemenl, whether caused by fraud, eor or other irregularities, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in aOrdanCe with ISAS (UK) will always detect a material misstatement when il exists. Misstatements considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users. IrregUl]lieS, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delect materia] tnisslatements in respect of iegUlarities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. As part of our risk assessment, we held discussions with management and those charged with governance to identify the laws and regulations that could reasonably be expected to have a Tnaterial impact on the financial statements. These tnatlers, together with consideration of where and how fraud might occur, were cotrllnunicaled to the engagement team during the audit planning process. Page 9
Independent auditoi's, report to The Fern Partnership> Company limited by guarantee, under Section 449 of the Companies Act 2006 The following laws and regulations were idenlifLed as being of significance lo the charitable company: Laws and regulations with a direct effect on the financial statetnenls: UK financial reporting standards (including FRS 102), the Chwities Act 2011, the Companies Act 2006, and relevant taxation and pensions legislation. Laws and regulations fundamental to the charity's operations, where non-compliance could have a material effect on the finarLcial statements: safeguarding requirements. health and safety legislation applicable to the charity's activities, and chatity govern8ce regulations. In response to the risks arising from ixregularities, our audit procedures included.. * Enquiries with tLVStees and management regarding compliance with laws and regulations. * Reviewing legal and regulatory correspondence. * Inspecting llLinutes of trustee tneetings. * Considering the risk of rnaterial misstatement in areas susceptible to tnanagement bias, including revenue recognition and stock balances. and * Testing journal entries to identify unusual patterns or indicators of ovenide of controls. No instances of material non-cornpliance were identified. However, the likelihood of detecting irregularities. including fraud. is affected by the inherent limitations of audit procedures, the effectiveness of the charity's internal controls. and the natt]re, timing and extent of the evidence obtained. IrregulltieS resulting frotn fraud may be inherently more difficult to detect than those arising from eOr. As such, there rem3ins an unavoidable risk that material tnisstatements may not be detected, even when the audit is properly planned and perfonned in accordance with ISAS (UK). A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. httPS.'/lwww.fre.org.uk/auditorsresponsibilities. This description forn]s part of our auditor's report. Other Matters I draw your attention to note l. l in respect of the comparative information in the financial statements being unaudited. Use of our report This report is made solely to the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been underlakeJJ so that we Ight state to the charitable company's members those matters we are required to stale to them in an auditor's report and for no other purpose. To the fullest extent pern)itted by law, we do not accept or assume responsibility to anyone other than the chltable company and the charitable company's members as a body, for our audit work. for this report, or for the opinions we have foThied. Robert Thorn CFCA Senior Statutory Auditor for and on beha]f of RH Jeffs and Rowe, Statutory Auditors & Chartered Accountants 27128 Gelliwastad Road Pontypridd CF37 2BW 21 November 2025 Page 10
The fiern Partnership Statement of Financial Activities for the year ended 31 March 2025 Unrestricted Restricted funds funds 2025 2025 Total Uni'estsicted funds 2024 Restricted funds 2024 Total 2025 2024 Income and Endowments Volllntary incoine: - Grants Trading Activities - Trading Income Other income: - Flying Start - Other Income CharAtable Aetivities: - Fee lllcome 47,025 243,206 290,231 34,121 176.017 210,138 221,537 221.537 220,255 220,255 509,030 90,307 509,030 90.307 397,447 3,569 397,447 3.569 187,022 187,022 163, 761 163, 761 Total Incoming Resources 1,054.921 243,206 1,298,127 819,153 176,017 995,170 Expenditllre Charitable activiti 4 987,532 253.116 1,240,648 816,253 174,840 991,093 Total Resollrces Expended 987.532 253,116 1.240.648 816,253 174,840 991,093 Net Ineoming (Outgoing) resources 67,389 (9,910) 57,479 2, 900 l.J77 4,077 Transfer Between Funds Net movement of funds (3,376) 3,376 67,389 (9,910) 57.479 (476) 4,553 4,077 Total Funds brollght forward 156,457 9,910 166,367 156.933 5,557 162,290 Total Funds earried forward 223,846 223,846 156,457 9,910 166,367 The statement of financi21 activities includes all gains and losses recognised in the ye. AII incoming resources and resources expended derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. Page 11
The Fern Partnership Charity iiumber 1168892 Balance sheet as at 31 March 2025 2025 2024 Notes Fixed Assets Tangible assets 363,344 169.026 Current Assets Stocks Debtors Cash at bank and in h?d 5,284 90,010 151,030 4,441 263,560 89,603 246,324 357,604 Creditors: amounts falling due withAn one year io (81,692) (67,809) Net Current assets 164,632 289,795 Net Assets Creditors: amounts falling due after more than one year 527,976 458,821 10 (304,130) (292,454) 223.846 166,367 The Funds of the Charity Unrestricted Funds Restricted Funds 11 li 223,846 156,457 9,910 Total Charity Funds 223.846 166,367 The notes on pages 14 - 23 fonn part of these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice Accounting and Reporting by Charities and in accordance with the special provisions of Part vIt of the Companies Act 2006 relating to small entities. The financial statements were approved by the Ttuslee Board on 19 November 2025 and signed on its behalf by:_ Kelvin Jones Page 12
The Fern Partnership Cash flow statement for the year ended 31 Mareh 2025 2025 2024 Notes Reconciliation of operating profitl(loss) to net cash inflow from operating activities Operating profit/(loss) 57,479 4,077 Depreciation (Increase) in stocks Decrease (increase) in debtors Increase l (Decrease) in creditors Capital grant received 20,713 (843) 173,550 13,883 16,754 (203) (193,417) 28,406 722,258 Net cash inflow from operating activities 264.782 577,875 Net cash inflow from operating activities Capital expenditure 264,782 (215,031) 577,875 (841,021) 49,751 (263,146) Net cash inflow from financing activities Financing 11,676 190,052 Increase in cash in the year 61,427 (73,094) Reconciliation of Det cash flow to movement in net funds tncrease l (Decrease) in cash in the year Net funds at l April 2024 Net funds at 31 March 2025 61,427 89,603 (73.094) 162,697 151,030 89,603 Page 13
The Fern Partnership Notes to the financial statetnents for the year ended 31 March 2025 Accounting policies 1.1. Statlltory Information The FeTn Partnership is a charitable company, limited by guarantee, IncoOrated in Wales in tE]e United Kingdom. The Tegistered office is North Road, Ferndale, CF43 4PS. The nature of the ch8Jity's operations and principal activities is dÈsclosed within the Trustees Report. The financial statements are presented in Sterling (£), the charities functional currency, and rounded to the nearest pound. The significant accounting policies applied in the prepation of these financial statements are set out below. These policies have been consistently applied to all years presented unless othenvise stated. 1.2. Basis of preparation and assessment of going Concern. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Financial Reporting Standard applicable in the United Kingdom (FRS 102) and the Charities Act 2011. The chlty constitutes a public benefit entity as defined by FRS 102. The Trustees have considered the charity's finaTkces for the coming Ye and have no Concerns or material uncertainties over the going concern status of the charity. Comparatives The comparative figures are unaudited. 1.3. Taxation As a registered charity The Fem Partnership, is entitled to the exemption from taxation in respect of income and capital gains received with sections 478489 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its ch&ritable objects purposes only. Its trading activities are taxable but currently no trading surpluses have been generated so that no Corporation Tax is due to date. The position on this will be kept under review. 1.4. Deferred income Grants for which the tnoney has been spent on capital expendittjre is defetred to go through the statement of financial activities at the same rate as the asset is expensed. Client fees received in advance for the following accounting year has been deferred. P2ge 14
The Fern Partnei'ship Notes to the financial statements for the year ended 31 March 2025 1.5. Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic fInancial instrutnenls. Basic financial inslrllTnents are initially iecognised al transaction value and Subsequently measured at their settlement value. Trade debtoi's and other debtors are recognised at the seiilement amount due and PTepayments are valued at the atnount prepaid. CTeditOTS 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 aJ]d the atnount due to settle the obligation can be measured or estimated reliably. Creditors normally recognised at their settlement amount after allowing for any trade discounts due. 1.6. Incoming resources All income is recognised once the chilY has entitlement to the incorne, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following specific policies are applied to particular categories of illcome.. Voluntary income is Teceived by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. The value of services provided by volunteers has not been included. Income from government grants, whether 'capital' or'revenue, is recognised when the the charity has entitlement to the funds, any perfonnance conditions attacbed to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and not deferred. Capital grants are classified in iestiicted funds with depreciation chged against the fund. 1.7. Resources expended Liabilities are recognised as expenditure as soon as there is a legaI or constructive obligation comn)ilting the charity lo that expenditure, Al is probabIe that settlement will be i'equired and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Charitable activities expenditure cornprises those costs incurred by the charity in the delivery of its activities and services for ils beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked lo the strategic managetnent of the charity. All costs are allocated between Ilie expenditure categories of the Statement of Financial Activities on a basis designed lo reflect the use of the resource. Costs relating lo a particular activity allocated directly, others are apportioned on an appropiiate basis. Page IS
The rtern Partnership Notes to the financial statements for the year ended 31 Mai'ch 2025 1.8. Fund Accounting Unrestricted funds are available for use at the discretion of the Iruslees in rtherllce of their charitable objectives. Designated fi]nds comprise funds which have been sel aside at the discretion of the cnistees for specific PL]rposes. The purposes and uses of the designated funds are sel out in the notes to the financial statements. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes arLd uses of the restricted funds are set out in the notes to the financial statements. 1.9. Tangible fixed assets and depreciation Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected usefvl life, as follows.. Freehold property Leasehold improvements Furniture & Fittings Motor Vehicles 50 years straight line excluding land an residual value Iolo Straight Line 20% Straight Line 20¢% Straight Line 1.10. Intsngible fixed assets Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fyir value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accutnulated amortisation and accumulated impairment losses. Goodwill is considered to have finite useful life and has been amortised over its expected usefvl life which is l year. Company limited by guarantee Every member of the Company undertakes to contribute to the assets of the company, in the event of the company being wound up. such 8mounts as may be required not exceeding £1. Page 16
The Fern Partnersliip Notes to the financial statements for the year ended 31 March 2025 Incoming Resources yeai, to 31103125 year to 31103124 Included within Incoming Resources for the Year are.. Grants Received: Unrestricted.. WG 30 Hours Other Grants Play Rcr Henry Smith 15,190 30,835 16,395 soo 6,050 9,926 950 1,000 47.025 34,121 Restricted.. COF Communities First Lottery Interlink RCT RCT Play RCT unpaid carers pyc RCtSPF WCVA Winter Hardship Other 50.000 40,491 77.906 1,000 2,620 33,368 80,936 6,000 2,038 1,992 30,096 77,776 10,000 1,000 2,000 2,000 243,206 176,017 Total Grant income 290.23 210,138 Income from charitable activities Fee Income 187,022 163,761 187,022 163,761 Income from trading activities Fuze thcome Cafe Trading Income 120.773 100,764 220.255 221,537 220,255 Other iucome Flying Start Other Income One to One 509,030 78,239 12,068 397,447 3,569 599,337 401,016 Tol21 income 1,298,127 995,170 Page 17
The Fern Partnership Notes to the financial statements for the year ended 31 March 2025 4. Total resources expended B9sis of Chxritable AllocalÉon Activities Total Total year to year to 31103125 31103124 Governance Governance costs Audil fee Accountsney & Independent Bxaminer Direct Direct 3,800 26.964 3,800 26,964 27,535 30,764 30,764 27,535 Support Costs allocated to aetivities Personnel costs Running costs Insurance Rent payable Utilities Legal & Professional Cornpuler. telephone and internet Bank Charges Bank interest Donation lo Ferndale Con)rnunity School General expenses Motor and travel expenses Depreciation Direct Direct 867,893 155,141 14,466 42,368 44,873 1.866 4,857 8,602 15,127 31.800 (215) 2.393 20,713 867,893 691,945 155,141 134.062 l4,466 9.594 42,368 77,946 44,873 10.839 1,866 4,857 8,602 15.127 31,800 (215) 2,393 20.713 Direct Direct Direct Direct Direct Direct Direct Direct Direct Direct Direct 13,864 3,720 1,530 1,453 1.851 16,754 1,209,884 1.209,884 963,558 1,209,884 30,764 1,240.648 991,093 Net Incoming (Outgoing)tResources Total year to 31103125 Total year to 31103124 This is stated after chargingl(crediting)'. Depreciation Auditors Remuneration 20.713 3.800 16,754 Page 18
The fiei'n Pai'tnel'ship Notes to the finanei21 statements for the year ended 31 Mareh 2025 Staff Costs Total TotAI year to year to 31103125 31103124 Staff costs during the Year comprised of the following.. saI.]es and wages Employers National Insurance Etnployers Pension Costs 803,664 652,423 40,647 18,784 23,582 20,738 867.893 691,945 The average number of full litne and 11 time equivalent efflployees during the Year was as follows.. Management Administration and support Direct service delivery Apprentices and placements 49 51 62 63 No employee ceIVed emoluments of £60,000 or more during the Year (2024.. nil). The Itustees received no remuneration or benefits in connection with the perforn]ance of their duties £0 was paid to Trustees to cover legitimate expenses (LY,. £0). Intangible fixed assets Goodwill Total Cost At l April 2024 20,000 20,000 At 31 March 2025 20,000 20,000 Atnortisation At l April 2024 20,000 20,000 At 31 March 2025 20,000 20,000 Net book values At 31 March 2025 At 31 March 2024 Page 19
The Fern Partnership Notes to the financial statements for the year ended 31 Mareh 2025 Land 2nd Leasehold Fixtures, buildings Xmprove- fittings and freehold ments equipment Tangible fixed assets Motor vellides Total Cost or Valuation At l April 2024 Additions 118,763 164,716 167,546 30,840 50,315 18,522 335,671 215,031 At 31 MCh 2025 283,479 167,546 81,155 18,522 550,702 Depreeiation At l April 2024 Charge for the year At 31 March 2025 117,283 20.713 30,840 18.522 166,645 20,713 137.996 30,840 18.522 187,358 Net book values At 31 March 2025 283,479 29,550 50,315 363,344 At 31 March 2024 118,763 50,263 169,026 Debtors 2025 2024 Trade debtors Deferred expenditure Grant funding receivable Other debtors Tax and social security Prepayments 72,574 37,787 43.000 21,633 7.750 147.348 6,041 8,940 3,788 4,708 90,010 263,559 io. CredAtors: amounts falling due within one year Bank loan Trade creditors Other taxes and social security costs Other creditors Grants paid in advance 2025 2024 20,825 21,952 7,993 4,471 26.451 27.621 10,105 5,083 25,000 81,692 67,809 Creditors: amounts falling due after more than one year Loan Deferred income 2025 2024 304,130 275,352 17.102 304,130 292,454 Page 20
oc cq ¥0 crym cTho QIOOO 0000 00 00 m(ntho 000 mtr-o O*mTto OOOLXKO 0000 OOO¢>
The Fern Partnership Notes to the financial statements for the year ended 31 March 2025 Movement on funds - continued Unrestricted funds:. Unrestiicted general funds may be spent generally for the fllrthering the charitable work of The Fern Partnership. The fund in this category is the General Fund. The unrestricted designated fund was WG Resilience funding secured lo provide support to families and young people who are suffering with mental health & well being problems caused by isolation through COVID. Funding has been set aside to work in partnership with Ferndale Community School lo create a Wellbeing officer to support our families in the Community. R£8tricted funds:. A wards for All The Fern Partnership was awarded £IO.000 in 2023-24 to deliver a number of Health & Wellbeing events acTOSS our cottmunities eg Jubilee events, Themed events , visits to outside attractions. Con]munities for Work CFW As a government funded project to help those adults furthest away from the labour into employment. It builds on our existing prograTnmes to tackle poverty to help get people into work and helps engageEnent with our community in Maerdy alld Ferndale. RCTSPF The UK Shared Prosperity Fund (UKSPF) is a new funding stream for local investment in accordance with the UK government's Levelling up Agenda. This is a new funding programme for RCT and it is anticipated that the third sector will benefit from this ndIng up until March 2025. Winter Hardship Fllnd This grant was awarded by Rcf to support families with food hampers etc through pressures caused by the cost of living crisis. Winter of Wellbeing The Fern Partnership secured funding for a number of projects throu1 RCT. Play schemes After School Clubs Baby & Toddler Groups, Summer of Fun and Winter of Wellbeing. All these funds help us provide activities for children and young people. Community Ownership Fund (COF) The Fern Partnership was awarded £350,000, £250,000 capital and £50,000 revenue towards the purchase of Fuze Soft Play & Climbing Centre. Interlink This grant was awarded by Interlink to support families with food hampers etc through pressures caused by the cost of liviJ)g crisis. Page 22
The Fern Partnership Notes to tlie financial statements for the year ended 31 MArch 2025 Movement on funds - continued Lottery People & Places funding was awarded to fund overhead costs of Ferndale Hwb. This funding has enabled us to strengthen our back-office support for the whole organisation. Managing sysletns such as fee collection for childcare as well a booking system for Fuze Soft Play & Climbing Centre. RCT RCT funding (£1,000) for Neighbourhood Network project and £1,620 from the Cotnmunity Facilities. 12. Analysis of Net Assets between Funds Total 2025 Unrestrieted Restricted Tangible Fixed Assets Net Cllent Assets Long Tenn Liabilities 363,344 164,632 (304,130) 363,344 164,632 (304,130) 223,846 223.846 13. Related party transaetions No payment of salary or expenses was made to any trustee for the year under review. (2024 - Nil) Page 23