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2024-08-31-accounts

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Reports and Accounts for Year End 31 August 2024 Charity number: 1181057

1

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Trustees Annual report for the year ended 31[st] August 2024

Contents Page

Page
Report of the trustees 3-5
Report of the Independent Auditors 6-8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Cash Flow Statement 12
Notes to the Financial Statements 13-19

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Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Trustees Annual report for the year ended 31[st] August 2024

The trustees present their annual report and financial statements of the charity for the year ended[31][st] August 2024. The financial statements have been prepared in accordance with the accounting policies set out in note I to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and the Charities Statement of Recommended Practice (second edition) aid Financial Reporting Standard FRS 102.

Objectives, Activities & Achievements

The Charity’s object is to advance the development and education of mainly, but not exclusively, pre-school children, by offering appropriate play, education, and care facilities through the medium of Welsh and English and by encouraging parents to understand and provide for the needs of their children.

The Charity provides childcare through the medium of Welsh and English at several different locations throughout Rhondda Cynon Taf and offers a variety of different services from sessional care, wrap- around to full day care.

The charities settings are registered for the Childcare offer and several of them are also ESTYN and Flying Start registered so that children within the community are able to access funded places.

The Charity currently has 9 nurseries located across Rhondda Cynon Taf and ran the same nurseries during 2023/24. It provides quality childcare to children in the local communities providing sessional care, full day care and wrap around service.

Risk Policy

The Trustees has considered all major risks and has taken the appropriate action to mitigate these risks. The charity keeps a risk assessment form on all activities.

Trustees

The following served as trustees during the year:

Office Address:

18 Main Road Tonteg CF38 1PN

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Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Trustees Annual report for the year ended 31[st] August 2024

Trustees pay

The trustees consider the board of trustees and key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis.

All trustees give of their time freely and no trustee remuneration was paid in the year. No expenses were paid to the trustees.

Legal Status

The organisation is a Constituted Charitable Incorporated Organisation and is registered with the Charity Commission (Charity number: 1181057).

Organisational Structure

The day to day running of the charity is the responsibility of its employees, with support from Camau Cyntaf i Ddysgu management, who are experienced in childcare. Major decisions are dealt with at the meetings of the management committee. The members of the management Committee, who constitute the charities trustees, are usually local residence, parents/guardians of past and present children who attend the nursery or someone who has an interest in improving the quality of pre-school education.

Review of the past year

The Charity faced financial challenges during 2023/24. The deficit was mainly as result of a significant increase in the National Minimum Wage which put pressure on Cashflow. There were also additional one-off costs from closing down one nursery and start-up costs for another nursery. Despite such challenges, as a result of sustained effort on the part of the trustees, senior management team and charity’s employees, the Balance Sheet remained strong at the year end with Reserves of £400,225.

Reserves Policy

The Charity’s policy on reserves is that ideally up to six months reserves are maintained at any one time in the current account. This is sufficient to meet all outstanding expenditure.

The charity, in future, will also create a reserve fund to support future protects such as opening new nurseries or improving the facilities of existing nurseries.

4

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Trustees Annual report for the year ended 31[st] August 2024

Trustees’ responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

This report was approved by the Trustees on 30-06-2025

Signed on behalf of the Trustees

Sian Mererid Boswell

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Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF FIRST STEPS NURSERY

Opinion

We have audited the financial statements of First Steps Nursery (the 'charity') for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, 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 relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated.

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Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF FIRST STEPS NURSERY

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material miss-statements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

However, it is the primary responsibility of management with the oversight of those charged with governance, to ensure that the entities operations are conducted in accordance with the provisions of laws and regulations, for the prevention and detection of fraud.

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Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF FIRST STEPS NURSERY

We also considered those laws and regulations that have a direct impact on the financial statements, such as FRS 102 and the Charities Act and Government grant regulations. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements, (including the risk of over-riding of controls) and determined that the principal risks were related to understatement of income and over-ride of controls. Audit procedures performed included:

There are inherent limitations in the audit procedure as described above. We are less likely to become aware of incidents of non-compliance with laws and regulations, that are not closely related to events and transactions reflected in the financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Bethan Wyn Vaughan Llyr James Chartered Certified Accountants and Registered Auditors 25 Bridge Street Carmarthen SA31 3JS Date 30-06-2025 8

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Statement of Financial Activities for the year ended 31[st] August 2024

Notes
Income
Donations
2
Charitable Activities
3
Other Income
4
Investment Income
5
Total Income
Expenditure
Cost of Sales
6
Employment Costs
6
Premises Costs
6
General Expenses
6
Total Expenditure
Net Movement on Funds
Opening Balance
Closing Balance		 Unrestricted
Income
£
8,577
1,398,718
1,447
30
1,408,772
90,680
1,263,232
146,082
55,013
1,555,007
(146,235)
372,203
225,968		 Designated
Income
£
-
-
-
-
-
-
-
-
-
-
174,257
174,257		 2024
£
8,577
1,398,718
1,447
30
1,408,772
90,680
1,263,232
146,082
55,013
1,555,007
(146,235)
546,460
400,225		 2023
£
7,968
1,232,336
10,722
23
1,251,049
77,950
1,036,791
108,420
54,770
1,277,931
(26,882)
573,342
546,460

No separate income and expenditure statement has been prepared. The notes on pages 13 to 19 form a full part of these accounts.

9

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Balance Sheet as at 31[st] August 2024

Notes
Fixed Assets
9
Current Assets
Debtors
10
Cash in hand and at bank
Creditors: amounts falling due
within one year
11
Net Current Assets
Net Assets
Capital and reserves
Unrestricted Funds
12
Designated Funds
13		 2024
78,862
336,342		 2,474
397,751		 2023
£
69,625
491,818		 13,701
532,759
415,204
(17,453)		 561,443
(28,684)
400,225 546,460
225,968
174,257		 372,203
174,257
400,225 546,460

Approved by the Charity on and signed on their behalf by 30-06-2025

Sian Mererid Boswell

10

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Statement of Cashflow as at 31[st] August 2024

Notes
Cash Flow from Operating Activities
1
Cash generated from operations
Net cash provided by operating activities
Cash flows from investing activities
Fixed Assets Additions
Interest Received
Net cash provided by investing activities
Cash in cash and cash equivalents in the reporting
period
Cash and cash equivalent at the beginning of the
reporting period
2
Cash and cash equivalents at the end of the
reporting period		 2024
£
(155,506)
(155,506)
-
30
30
(155,476)
491,818
336,342		 2023
£
194,281
194,281
(3,621)
23
(3,598)
190,683
301,135
491,818

11

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Statement of Cashflow as at 31[st] August 2024

1. Reconciliation of Net Income to Net Cash Flow from Operating Activities

Net (expenditure)/income for the reporting period (as
per the Statement of Financial Activities)
Adjustment for:
Depreciation Charge
Interest Received
(Increase) / Decrease in Debtors
(Decrease) / Increase in Creditors
Net Cash provided by operations		 2024
£
(146,235)
11,227
(30)
(9,237)
(11,231)
(155,506)		 2023
£
(26,882)
10,925
(23)
215,424
(5,163)
194,281

2. Analysis of Changes in Net Funds

Net Cash
Cash at bank and in hand		 At 1/9/23
Cash Flow
At 31/8/24
£
£
491,818
(155,476)
336,342
491,818
(155,476)
336,342

12

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Notes and Accounting Policies

1. Accounting Policies

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Income

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

Expenditure

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

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

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

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

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

Pension costs and other post-retirement benefits

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

13

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Notes and Accounting Policies

Accounting Policies (continued)

Going Concern

The accounts have been prepared on the assumption that the charity is able to carry on operating as a going concern, which the trustees consider appropriate.

Fixed assets

First Steps Nursery defines a fixed asset as a purchase or gift which provides ongoing benefit to the charity where the purchase price, including non-recoverable VAT, exceeds £1,000 and items below this value should be treated as an expense. All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated to write off the cost of an asset over the useful economic life of that asset:

2. Donations

Fundraising Income Unrestricted
Income
£
8,577
8,577		 Designated
Income
£
-
-		 2024
£
8,577
8,577		 2023
£
7,968
7,968

3 Charitable Activities Income

Fees
Rhondda Cynon Taf County Borough:
-
Flying Start
-
Childcare Offer
-
Grants		 Unrestricted
Income
£
368,536
792,723
124,853
112,606
1,398,718		 Designated
Income
£
-
-

-
-		 2024
£
368,536
792,723
124,853
112,606
1,398,718		 2023
£
375,183
560,108
202,295
94,750
1,232,336

14

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Notes and Accounting Policies (continued)

4. Other Income

Recharged Items
Other
5. Investment Income
Bank Interest		 Unrestricted
Income
£
204
1,243
1,447
Unrestricted
Income
£
30
30		 Designated
Income
£
-
-
-
Designated
Income
£
-
-		 2024
£
204
1,243
1,447
2024
£
30
30		 2023
£
2,085
8,637
10,722
2023
£
23
23

15

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Notes and Accounting Policies (continued)

6. Charitable Expenditure

Cost of Sales
General Purchases
Employment Costs
Wages & Salaries
Staff Training
Staff Welfare
Staff Recruitment
Premises Costs
Rent
Rates
Power, Heat & Light
Cleaning
General Administrative Expenses
Phone & Internet
Memberships & Subscriptions
Insurance
Repair & Maintenance
Health & Safety
Depreciation
Bank Charges
Bad debt Written Off
Uniform
Other Expenses
Auditors’ remuneration		 2024
£
90,680
1,253,917
4,108
2,903
2,304
1,263,232
110,813
599
5,918
28,752
146,082
9,780
2,442
1,034
15,284
463
11,227
617
4,999
1,721
546
6,900
55,013		 2023
£
77,950
1,018,530
12,578
2,980
2,703
1,036,791
79,039
494
11,807
17,080
108,420
10,458
2,358
980
19,616
942
10,925
664
1,131
-
1,096
6,600
54,770

16

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Notes and Accounting Policies (continued)

7. Trustees' Remuneration and Benefits

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

Trustees' expenses

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

8. Employment Costs

Wages & Salaries
Social Security Costs
Other Pension Costs
Average monthly number of
employees during the year		 2024
2023
£
£
1,178,891
981,924
55,037
21,718
19,989
14,888
1,253,917
1,018,530
2024
2023
80
73

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

9. Tangible Fixed Assets

COST
As at 1 September 2023
Additions
At 31stAugust 2024
DEPRECIATION
At 1stSeptember 2023
Charge for year
At 31stAugust 2024
NET BOOK VALUE
At 31stAugust 2024
At 31stAugust 2023		 Nursery
Improvements
Fixtures &
Fittings
Totals
£
£
£
47,171
8,963
56,134
-
-
-
47,171 8,963
56,134
37,736
4,697
42,433
9,434
1,793
11,227
47,170
6,490
53,660
1
2,473
2,474
9,435
4,266
13,701

17

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057

Notes and Accounting Policies (continued)

10. Debtors

Staff Loans
CCID
Sale Debtors
GoCardless
Other
Prepayments		 2024
2023
£
£
12,388
8,196
47,462
42,583
10,426
7,333
-
2,201
898
1,987
7,688
7,325
78,862
69,625

11. Creditors: Amounts falling due within 1 year

Taxation & social security costs
Deferred income
Other creditors		 2024
2023
£
£
6,160
6,704
-
6,742
11,293
15,238
17,453
28,684

12. Unrestricted Funds

General Funds Balance
Balance
September
Incoming
Outgoing
Transfers
August
2023
2024
£
£
£
£
£
372,203
1,408,772
1,555,007
-
225,968
372,203
1,408,772
1,555,007
-
225,968

18

Docusign Envelope ID: EC25E6E6-7C22-436B-9AC0-087D54FC8DF8

First Steps Nursery

Charity Number: 1181057 Notes and Accounting Policies (continued

13. Designated Funds

13. Designated Funds
Overhead Reserve Fund Balance
Balance
September
Incoming
Outgoing
Transfers
August
2023
2024
£
£
£
£
£
174,257
-
-
-
174,257
174,257
-
-
-
174,257

In line with Charity guidance for building reserves, First Steps Nursery keeps a designated fund towards the unpredictability of the income stream.

Recent changes in the funding formula have resulted in nurseries running at a loss in the short term (due to a lack of children). School changes in the decision of when admission occurs can result in unplanned shortfalls, and given the fixed costs of employment, the charity must fund the staffing and rental costs. Whilst all efforts are made to plan the charity finances, regulatory changes, especially with short-term warning, cannot be controlled.

The designated fund was first created when the charity took over the operating of new nurseries, and the funds held by those nurseries were transferred to First Steps Nursery.

14. Related Party Disclosures

Camau Cyntaf i Ddysgu (CCID) CBC

The charity received the following income from CCID during the year: Income £668,837.

Money owing from CCID on 31 August 2024 is included under debtors in the accounts and the balance at the year-end was £47,462

A trustee of the charity is also a director of CCID. Directors of CCID are responsible for the day-to-day running and management of the charity.

19