CHARITY REGISTRATION NUMBER: 1175752
Hythe Bay Children's Centre Unaudited Financial Statements
31 March 2023
PG LEMON LLP
Chartered Certified Accountants 134 High Street Hythe Kent CT21 5LB
Hythe Bay Children's Centre
Financial Statements
Year ended 31 March 2023
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent examiner's report to the trustees | 3 |
| Statement of financial activities | 4 |
| Statement of financial position | 5 |
| Notes to the financial statements | 6 |
Hythe Bay Children's Centre
Trustees' Annual Report
Year ended 31 March 2023
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2023.
Reference and administrative details
| Registered charity name | Hythe Bay Children's Centre |
|---|---|
| Charity registration number | 1175752 |
| Principal office | Cinque Ports Avenue |
| Hythe | |
| CT21 6HS | |
| Kent |
The trustees
Miss A Whatford (Appointed 3 May 2022) Mrs C Chivers Mrs R Prout Mrs S Brown Mr V Casambros Prof B Hill
Independent examiner
Mr Philip Gambrill MAAT FCCA
Structure, governance and management
The charity underwent a transfer of a charity into a charitable incorporated organisation on 31 January 2018. All assets and liabilities were transferred to the new CIO. The new Hythe Bay Children's Centre continues under the same structure with the same objectives.
Description of the charity:
Hythe Bay Children's Centre incorporates Hythe Bay Nursery and Out of School Club.
Type of governing document: trust
A constitution was adopted on 18 May 2017 in order for charity to transfer to CIO on 31 January 2018. A new constitution was signed on 15 October 2019.
Trustee selection methods:
Membership is open to individuals over eighteen or organisations who are approved by the trustees. The trustees may only refuse an application for memebership if, acting reasonably and properly, they consider it to be in the best interests of the charity to refuse the application.
The trustees have had regard to the guidance issued by the Charity Commission on public benefit.
1
Hythe Bay Children's Centre
Trustees' Annual Report (continued)
Year ended 31 March 2023
Objectives and activities
Summary of the purposes of the charity as set out in its governing document: The education and care of children under eleven.
Summary of main activities: Full day care for under 5s. Out of school care for 5-11 year olds Holiday play scheme for 5-11 year olds.
Achievements and performance
Summary of the main achievements of the charity: Pre-school day care provision for children. Out of school care during term time for children. Holiday play scheme for children. Family support. All children are local to the area of Hythe. Ofsted judged the provision as 'good' in March 2022.
Financial review
The income in the year to 31 March 2023 reached £619,726, and the expenditure in the same year was £561,836, creating a surplus of income over expenditure of £57,890.
Reserve policy:
The charity keeps an operating reserve as cash at bank in order to sustain the organisation. The usual amount held is equivalent to costs of three months' salaries.
The charity's principal sources of income are: KCC headcount funding, government grants and fees from parents.
Additional policies and training: LA training in October 2020.
The trustees' annual report was approved on 11 August 2023 and signed on behalf of the board of trustees by:
Mrs Carolyn Chivers (chair)
2
Hythe Bay Children's Centre
Independent Examiner's Report to the Trustees of Hythe Bay Children's Centre
Year ended 31 March 2023
I report to the trustees on my examination of the financial statements of Hythe Bay Children's Centre ('the charity') for the year ended 31 March 2023.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the charity as required by section 130 of the Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
Mr Philip Gambrill MAAT FCCA Independent Examiner
PG Lemon LLP 134 High Street Hythe Kent CT21 5LB
19 October 2023
3
Hythe Bay Children's Centre
Statement of Financial Activities
Year ended 31 March 2023
| 2023 | 2023 | 2022 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Grants and other funding | 4 | 267,578 | 267,578 | 254,230 |
| Income from charitable activities | 5 | 350,429 | 350,429 | 370,825 |
| Investment income | 6 | 431 | 431 | 8 |
| Other income | 7 | 1,288 | 1,288 | – |
| ��������� | ��������� | ��������� | ||
| Total income | 619,726 | 619,726 | 625,063 | |
| ��������� | ��������� | ��������� | ||
| Expenditure | ||||
| Expenditure on charitable activities | 8,9 | 404,007 | 404,007 | 388,276 |
| Other expenditure | 10 | 162 | 162 | 175 |
| ��������� | ��������� | ��������� | ||
| Total expenditure | 404,169 | 404,169 | 388,451 | |
| ��������� | ��������� | ��������� | ||
| Other administration costs | 11 | 157,667 | 157,667 | 171,651 |
| ��������� | ��������� | ��������� | ||
| Net income and net movement in funds | 57,890 | 57,890 | 64,961 | |
| ��������� | ��������� | ��������� | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 167,741 | 167,741 | 102,780 | |
| ��������� | ��������� | ��������� | ||
| Total funds carried forward | 225,631 | 225,631 | 167,741 | |
| ��������� | ��������� | ��������� |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 6 to 12 form part of these financial statements.
4
Hythe Bay Children's Centre
Statement of Financial Position
31 March 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Tangible fixed assets | 16 | 6,949 | 2,627 |
| Current assets | |||
| Debtors | 17 | 21,901 | 11,148 |
| Cash at bank and in hand | 207,862 | 161,189 | |
| ��������� | ��������� | ||
| 229,763 | 172,337 | ||
| Creditors: amounts falling due within one year | 18 | 11,081 | 7,223 |
| ��������� | ��������� | ||
| Net current assets | 218,682 | 165,114 | |
| ��������� | ��������� | ||
| Total assets less current liabilities | 225,631 | 167,741 | |
| ��������� | ��������� | ||
| Net assets | 225,631 | 167,741 | |
| ��������� | ��������� | ||
| Funds of the charity | |||
| Unrestricted funds | 225,631 | 167,741 | |
| ��������� | ��������� | ||
| Total charity funds | 20 | 225,631 ��������� |
167,741 ��������� |
These financial statements were approved by the board of trustees and authorised for issue on 11 August 2023, and are signed on behalf of the board by:
Mrs Carolyn Chivers
The notes on pages 6 to 12 form part of these financial statements.
5
Hythe Bay Children's Centre
Notes to the Financial Statements
Year ended 31 March 2023
1. General information
The charity is a public benefit entity and a registered charity in England and Wales. It takes form of a charitable incorporated organisation. The address of the principal office is Cinque Ports Avenue, Hythe, Kent, CT21 6HS.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Judgements and key sources of estimation uncertainty
The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: none
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
6
Hythe Bay Children's Centre
Notes to the Financial Statements (continued)
Year ended 31 March 2023
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
-
income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
-
legacy income is recognised when receipt is probable and entitlement is established.
-
income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
-
income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
-
expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable 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.
-
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on 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.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
7
Hythe Bay Children's Centre
Notes to the Financial Statements (continued)
Year ended 31 March 2023
3. Accounting policies (continued)
Tangible assets (continued)
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Equipment - 15% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in income or expenditure unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the statement of financial activities in the period it arises, and is allocated to the appropriate expenditure heading.
8
Notes to the Financial Statements (continued)
Hythe Bay Children's Centre
Year ended 31 March 2023
3. Accounting policies (continued)
Financial instruments
The charity had only basic financial instruments in the period under review.
4. Grants and other funding
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Grants | ||||
| Other grants | 37,885 | 37,885 | 52,336 | 52,336 |
| KCC headcount funding | 229,693 | 229,693 | 201,894 | 201,894 |
| ��������� | ��������� | ��������� | ��������� | |
| 267,578 | 267,578 | 254,230 | 254,230 | |
| ��������� | ��������� | ��������� | ��������� |
5. Income from charitable activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Nursery income | 305,049 | 305,049 | 321,416 | 321,416 |
| Early years pupil premium | 3,476 | 3,476 | 2,417 | 2,417 |
| Out of school club | 41,904 | 41,904 | 46,992 | 46,992 |
| ��������� | ��������� | ��������� | ��������� | |
| 350,429 | 350,429 | 370,825 | 370,825 | |
| ��������� | ��������� | ��������� | ��������� |
6. Investment income
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Bank interest | 431 | 431 | 8 | 8 | |
| ���� | ���� | ���� | ���� | ||
| 7. | Other income | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2023 | Funds | 2022 | ||
| £ | £ | £ | £ | ||
| Other income | 1,288 | 1,288 | – | – | |
| ������� | ������� | ���� | ���� |
9
Notes to the Financial Statements (continued)
Hythe Bay Children's Centre
Year ended 31 March 2023
8. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Catering nursery | 10,269 | 10,269 | 13,271 | 13,271 |
| Catering OSC | 4,810 | 4,810 | 4,470 | 4,470 |
| Trips OSC | 118 | 118 | 463 | 463 |
| Trips nursery | 815 | 815 | 3,685 | 3,685 |
| Outside play | 1,305 | 1,305 | 3,219 | 3,219 |
| Wages and salaries | 386,690 | 386,690 | 363,168 | 363,168 |
| ��������� | ��������� | ��������� | ��������� | |
| 404,007 | 404,007 | 388,276 | 388,276 | |
| ��������� | ��������� | ��������� | ��������� |
9. Expenditure on charitable activities by activity type
| Activities | ||||
|---|---|---|---|---|
| undertaken | Total funds | Total fund | ||
| directly | 2023 | 2022 | ||
| £ | £ | £ | ||
| Catering nursery | 10,269 | 10,269 | 13,271 | |
| Catering OSC | 4,810 | 4,810 | 4,470 | |
| Trips OSC | 118 | 118 | 463 | |
| Trips nursery | 815 | 815 | 3,685 | |
| Outside play | 1,305 | 1,305 | 3,219 | |
| Wages and salaries | 386,690 | 386,690 | 363,168 | |
| ��������� | ��������� | ��������� | ||
| 404,007 | 404,007 | 388,276 | ||
| ��������� | ��������� | ��������� | ||
| Other expenditure | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Bank charges | 162 | 162 | 175 | 175 |
| ���� | ���� | ���� | ���� | |
| Other administration costs | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2023 | Funds | 2022 | |
| £ | £ | £ | £ | |
| Staff development costs | (2,489) | (2,489) | (3,469) | (3,469) |
| Support charitable activity 1 - | ||||
| depreciation | (1,308) | (1,308) | (464) | (464) |
| Insurance | (1,183) | (1,183) | (1,388) | (1,388) |
| Cleaning and hygiene | (3,354) | (3,354) | (3,960) | (3,960) |
| Property maintenance | (262) | (262) | (15,262) | (15,262) |
| Admin supplies and admin costs | (149,071) | (149,071) | (147,108) | (147,108) |
| ��������� | ��������� | ��������� | ��������� | |
| (157,667) ��������� |
(157,667) ��������� |
(171,651) ��������� |
(171,651) ��������� |
10. Other expenditure
11. Other administration costs
10
Hythe Bay Children's Centre
Notes to the Financial Statements (continued)
Year ended 31 March 2023
12. Net income
Net income is stated after charging/(crediting):
Depreciation of tangible fixed assets
| 2023 | 2022 |
|---|---|
| £ | £ |
| 1,308 | 464 |
| ������� | ���� |
13. Independent examination fees
The independent examination fee was £1,500.
14. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 380,679 | 358,060 |
| Employer contributions to pension plans | 6,011 | 5,108 |
| ��������� | ��������� | |
| 386,690 | 363,168 | |
| ��������� | ��������� |
The average head count of employees during the year was Nil (2022: Nil).
The average number of employees was 31 (2022: 27).
No employee received employee benefits of more than £60,000 during the year (2022: Nil).
15. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity were received by the trustees.
16. Tangible fixed assets
| Equipment | |
|---|---|
| £ | |
| Cost | |
| At 1 April 2022 | 3,091 |
| Additions | 5,630 |
| ������� | |
| At 31 March 2023 | 8,721 |
| ������� | |
| Depreciation | |
| At 1 April 2022 | 464 |
| Charge for the year | 1,308 |
| ������� | |
| At 31 March 2023 | 1,772 |
| ������� | |
| Carrying amount | |
| At 31 March 2023 | 6,949 |
| ������� | |
| At 31 March 2022 | 2,627 |
| ������� |
11
Hythe Bay Children's Centre
Notes to the Financial Statements (continued)
Year ended 31 March 2023
17. Debtors
| 2023 | 2022 | ||
|---|---|---|---|
| £ | £ | ||
| Trade debtors | 10,649 | 11,105 | |
| Other debtors and prepayments | 11,252 | 43 | |
| �������� | �������� | ||
| 21,901 | 11,148 | ||
| �������� | �������� | ||
| 18. | Creditors: amounts falling due within one year | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Trade creditors | 245 | 245 | |
| Accruals and deferred income | 2,520 | 2,520 | |
| Social security and other taxes | 8,316 | 4,458 | |
| �������� | ������� | ||
| 11,081 | 7,223 | ||
| �������� | ������� |
19. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £6,011 (2022: £5,108).
20. Analysis of charitable funds
Unrestricted funds
| At | ||||||
|---|---|---|---|---|---|---|
| At | Gains and | 31 | March 202 | |||
| 1 | April 2022 | Income | Expenditure | losses | 3 | |
| £ | £ | £ | £ | £ | ||
| 167,741 | 619,726 | (404,169) | (157,667) | 225,631 | ||
| ��������� | ��������� | ��������� | ��������� | ��������� | ||
| At | ||||||
| At | Gains and | 31 | March 202 | |||
| 1 | April 2021 | Income | Expenditure | losses | 2 | |
| £ | £ | £ | £ | £ | ||
| 102,780 | 625,063 | (388,451) | (171,651) | 167,741 | ||
| ��������� | ��������� | ��������� | ��������� | ��������� |
21. Analysis of net assets between funds
Total Funds 2023 £ Total Funds 2022 £
12