**Charity Registration No. 1177864**
# **CARMEL PLAYGROUP AND TODDLERS ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2021**
## **CARMEL PLAYGROUP AND TODDLERS**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Trustees**
## **Charity number**
## **Principal address**
## **Independent examiner**
Julie Biggadike Lowri Pope Michelle Simpson Rebecca Farrel-Jones Catherine Kelly Carley Jones Lauren Smith
1177864 Ysgol Bro Carmel Carmel Road Carmel Holywell Clwyd United Kingdom CH8 8NU
Azets Audit Services Brynford House 21 Brynford Street Holywell Flintshire United Kingdom CH8 7RD
(Appointed 29 April 2021) (Appointed 24 May 2021) (Appointed 24 May 2021) (Appointed 24 May 2021) (Appointed 24 May 2021) (Appointed 24 May 2021) (Appointed 24 May 2021)
## **CARMEL PLAYGROUP AND TODDLERS**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 10|
## **CARMEL PLAYGROUP AND TODDLERS**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
The trustees present their report and financial statements for the year ended 31 August 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution , the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The charity's objects are to enhance the development and education of children in Wales, for the public benefit, by encouraging parents to understand and provide for their needs through high quality childcare provision and there has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The charity meets the Charity Commission's public benefit criteria under both the advancement of education, the advancement of citizenship or community development headings.
## **Achievements and performance**
Carmel Playgroup and Toddlers was dormant for the year ended 31 August 2019 and began formal operations from the new school term in September 2019 for children's education.
## **Financial review**
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level sufficient to continue the charitable activities of the charity should income and fund raising activities fall short. Any surplus funds which are not likely to be needed to pay for activities will be placed on deposit to earn interest.
The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
The charity's governing document is its constitution and the charity was registered, with the Charity Commission, as a Charitable Incorporated Organisation (CIO) on 9 April 2018.
The trustees who served during the year and up to the date of signature of the financial statements were:
|Mrs E Warbrick|(Resigned 24 May 2021)|
|---|---|
|Mrs S C Cheffings|(Resigned 24 May 2021)|
|Mrs G Jones|(Resigned 24 May 2021)|
|Julie Biggadike|(Appointed 29 April 2021)|
|Lowri Pope|(Appointed 24 May 2021)|
|Michelle Simpson|(Appointed 24 May 2021)|
|Rebecca Farrel-Jones|(Appointed 24 May 2021)|
|Catherine Kelly|(Appointed 24 May 2021)|
|Carley Jones|(Appointed 24 May 2021)|
|Lauren Smith|(Appointed 24 May 2021)|
The Board of Trustees is responsible for the strategic direction and policy of the charity. The day to day running of the charity is delegated to paid staff and volunteers.
The trustees' r eport was approved by the Board of Trustees.
- 1 -
## **CARMEL PLAYGROUP AND TODDLERS**
**TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
Trustee Dated: 29 June 2022
- 2 -
## **CARMEL PLAYGROUP AND TODDLERS**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF CARMEL PLAYGROUP AND TODDLERS**
I report to the trustees on my examination of the financial statements of Carmel Playgroup and Toddlers (the charity) for the year ended 31 August 2021.
## **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 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 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 financial statements to be reached.
Melanie Langton-Davies ACA FCCA Azets Audit Services
Brynford House 21 Brynford Street Holywell Flintshire CH8 7RD United Kingdom
Dated: 29 June 2022
- 3 -
## **CARMEL PLAYGROUP AND TODDLERS**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2021**|2020|
||**Notes**|
**£**|**£**|
|**Income:**||||
|Early entitlement and assisted places|**3**|29,691|24,769|
|Fees and fundraising|**4**|4,132|9,021|
|Investments|**5**|1|12|
|Other income|**6**|13,439|6,560|
|**Total income**||47,263|40,362|
|**Expenditure on:**||||
|Charitable activities|**7**|43,729|38,594|
|**Net income for the year/**||||
|**Net movement in funds**||3,534|1,768|
|Fund balances at 1 September 2020||20,974|19,206|
|**Fund balances at 31 August 2021**||24,508|20,974|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
## **CARMEL PLAYGROUP AND TODDLERS**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2021**_
|**Notes**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**10**
Net current assets
**Income funds**
Unrestricted funds|**2021**
**£**
25,006
(498)|**£**
24,508
24,508
24,508|**2020**
**£**
21,362
(388)|**£**
20,974
20,974
20,974|
|---|---|---|---|---|
The financial statements were approved by the Trustees on 29 June 2022
## **Trustee**
- 5 -
**CARMEL PLAYGROUP AND TODDLERS**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
## **Charity information**
Carmel Playgroup and Toddlers is a Charitable Incorporated Organisation governed by its constitution.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's constitution, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 6 -
## **CARMEL PLAYGROUP AND TODDLERS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.6 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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## **CARMEL PLAYGROUP AND TODDLERS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **3 Early entitlement and assisted places**
|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2021**|2020|
|||**£**|£|
||Early entitlement and assisted places|29,691|24,769|
|**4**|**Fees and fundraising**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**2021**|2020|
|||**£**|£|
||Fees|4,132|7,202|
||Fundraising|-|1,819|
||Fees and fundraising|4,132|9,021|
|**5**|**Investments**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**2021**|2020|
|||**£**|£|
||Bank deposit interest|1|12|
|**6**|**Other income**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**2021**|2020|
|||**£**|£|
||Government grants|9,386|-|
||Grants - Job Retention Scheme|4,053|6,560|
|||13,439|6,560|
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## **CARMEL PLAYGROUP AND TODDLERS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **7 Charitable activities**
||**Charitable**|
**Charitable**|
|---|---|---|
||**Expenditure**|
**Expenditure**|
||**Heading 1**|
**Heading 1**|
||**2021**|
**2020**|
||**£**|
**£**|
|Staff costs|37,999|
33,163|
|Memberships|35|
112|
|Rent|-|
834|
|Expenses and resources|360|
686|
|Telephone|539|
580|
|Outings and activities|-|
156|
|Equipment|2,179|
791|
|Insurance|491|
479|
|Snacks|1,131|
799|
|Computer software|119|
119|
|Payroll and administration|480|
480|
|Sundry expenses|-|
35|
|Accountancy|396|
360|
||43,729|
38,594|
||43,729|
38,594|
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **9 Employees**
The average monthly number of employees during the year was:
||**2021**|**2020**|
|---|---|---|
||**Number**|**Number**|
||4|5|
|**Employment costs**|**2021**|**2020**|
||**£**|**£**|
|Wages and salaries|37,804|33,163|
|Social security costs|195|-|
||37,999|33,163|
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## **CARMEL PLAYGROUP AND TODDLERS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_
## **10 Creditors: amounts falling due within one year**
|Other taxation and social security
Accruals and deferred income|**2021**
**£**
103
395
498|**2020**
**£**
27
361
388|
|---|---|---|
## **11 Related party transactions**
There were no disclosable related party transactions during the year .
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