Kindred Squared
(A charitable company limited by guarantee)
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS For the year ended 31 May 2023
Company Registration No. 12633929 Charity Registration No. 1190581
Kindred Squared
(A charitable company limited by guarantee) TRUSTEES’ ANNUAL REPORT (incorporating the Directors’ Report)
The Trustees present their report together with the financial statements of the Charity for the year ended 31 May 2023. The Charity was incorporated as a company limited by guarantee on 30 May 2020 and registered as a charity on 28 July 2020.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charity’s governing document, the Companies Act 2006, 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 (FRS102) (effective 1 January 2019).
Reference and administrative details
The Trustees are appointed in accordance with the Terms and Conditions contained in the Charity’s Memorandum and Articles of Association.
The Trustees who served during the year and up to the signing of this report were as follows:
Ian Armitage Frances Jacob Jocelyn Stevenson
Registered Office
Third Floor 20 Old Bailey London United Kingdom EC4M 7AN
Independent Examiner
Nicholas Sladden on behalf of RSM UK Tax and Accounting Limited 25 Farringdon Street London EC4A 4AB
Bankers
C Hoare and Co. 37 Fleet Street London EC4P 4DQ
Company Number
12633929
Charity Registration Number
1190581
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Kindred Squared
(A charitable company limited by guarantee) TRUSTEES’ ANNUAL REPORT (incorporating the Directors’ Report)
Structure, governance and management
The Trustees are also Directors of the Company for the purposes of company law. The Board of Trustees has no sub-committees but has appointed advisors to assist in making recommendations to the Board. The Board aims to meet six times a year in face-to-face meetings and by conference call when required or circumstances dictate, subject to requirements. There shall be at least three Trustees on the Board.
Trustee induction and training
The Trustees as charity trustees and company directors have control of the Charity and its funds.
The Charity’s Trustees are all familiar with the practical work of the Charity and their responsibilities as Trustees. All Trustees review relevant information from the Charity Commission and the Charity’s advisors, as appropriate.
The Trustees shall consist of at least three persons who being individuals are over the age of 18, all of whom must be Members, support the Objects, have each signed a written declaration of willingness to act as a charity trustee and member of the charity.
Unless otherwise determined by the Trustees, the maximum number of trustees shall be seven.
Trustees are appointed by the Trustees for a term of up to three years. A retiring Trustee who is eligible may be reappointed two times. Thereafter, the Trustees (other than the Trustee in question) may, in the interests of the Charity and upon reasonable grounds, waive the maximum term upon which a person may serve as a trustee.
Management
The Charity’s affairs are conducted on a day-to-day basis by Felicity Gillespie, Director under direction of the Trustees.
Risk management
The Board of Trustees have reviewed the major risks and uncertainties to which the Charity is exposed. The Board is satisfied that the procedures in place are adequate to manage such risks appropriately. The major risk which the Charity faces is that its income is entirely derived from its founder, who is the Charity’s only significant donor.
Public benefit statement
The Trustees have given consideration to the Charity Commission published guidance and consider that the Charity operates for the public benefit.
Objectives and activities
The object of the Charity is to advance for the public benefit, early child development and education in England and Wales, in particular, but without prejudice to the generality of the foregoing, by publicising the importance of early years development and education for the life chances, health and happiness of every citizen, extending understanding of its importance through research (and the dissemination of scientific research), collaboration and advocacy, in order to effect improvements in the early development of all children.
Powers
The Charity has the power to do anything within the law which may promote or help to promote the objects.
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Kindred Squared
(A charitable company limited by guarantee) TRUSTEES’ ANNUAL REPORT (incorporating the Directors’ Report)
Activities
This year saw the publication of our third School Readiness report, now established as the most significant national research survey into the issue of ‘school readiness’ and the impact that children arriving at Reception behind the developmental curve of their age has not only on their progress, but on the whole school. This year we extended the research to include parents and found that a major reason for the high rates of children (almost half) arriving at school not ready to take advantage of the opportunities of Reception was simple ignorance.
The hugely positive feedback on the Secondary Education around Early Neurodevelopment (SEEN) continued with more children and schools participating in the curriculum.
We led the development of a major study into the funding of early child education, specifically examining options for funding public entitlements with a view to recognising the limitations of current public finances whilst seeking to ensure that the children most likely to benefit from high quality early childcare and education were most likely to receive it.
The development of an outcomes framework to create a common approach to defining, measuring and discussion children and families across the public sector continued with a growing coalition of public, private and third sector organisations involved in the development and testing of approaches.
Our public messaging continued, in our own right and through partnerships with other early years organisations. We continued to collaborate with a major national supermarket on the development of a new baby and toddler range, focusing on introducing the idea that parents should ‘Sing to me’, with evidence based wording on packaging underpinning the core message.
Achievements and performance
The ‘school readiness’ survey received considerably more media coverage than in previous years, largely due to the inclusion of data on the views of over 1,000 parents, and continues to be a touchstone for many conversations in the sector and with policy makers. It remains the only national survey of developmental readiness of children at the start, not end, of reception year.
SEEN Lessons were delivered to over 20,000 young people, or 5% of schools (175). Students taking the class had an average pupil premium and free school meal percentage above national mean, indicating that participating schools are disproportionately serving the more disadvantaged students in the cohort. A shift from basic to good or excellent understanding was evident in the post-participation survey data. Extraordinarily positive feedback from participating schools remains a feature of the programme.
5 of the largest multi-academy trusts have rolled the programme out to their students and are in the process of embedding the content into their curriculum. We saw a wider interest in secondary education community in content with SEEN Lessons delivered to 4,400 students in 36 schools, by 211 teachers. (98 schools committed to deliver to about 15,000). 89% of students said the SEEN Lessons should be taught. 91% of teachers said that they thought brain development during early childhood should be covered in school and 88% believe that brain development during early childhood should be in the national curriculum for science.
Over 4,000 student surveys were completed, demonstrating growing knowledge and informing the further development of the programme. Lessons are now available not only for secondary but also all primary students, with teacher training and resources available to all schools. The team have developed a strong relationship with the Association for Science Education (ASE). The SEEN resources are ‘Green Tick’ approved and ASE are marketing the resources with science teachers.
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Kindred Squared
(A charitable company limited by guarantee) TRUSTEES’ ANNUAL REPORT (incorporating the Directors’ Report)
Achievements and performance (continued)
Our communications and coalition-building work has continued through the year with major projects shared with organisations across the sector. The growing coalition around the Common Outcomes framework created a map of all children’s outcomes to improve consistency and collaboration. Individual work strands have been developed and increasing numbers of funding organisations, service delivery organisations and community-facing organisations are committed to the ongoing development of the work. Piloting of the approach is underway in a number of local authorities
A new three-year strategy for the organisation was agreed by trustees in February 2023, setting out the organisation’s plans for a campaign with a greater focus on public-facing communications. The focus is more tightly drawn around the communication of the importance of the early years to later life chances and the critical impact of children’s early development not only on their own futures but on the progress made by their classroom peers, the productivity and success of the economy and the kind of society we want to become.
Financial review
Financial results
During the year the Charity received donations totalling £652,863 (2022: £400,500). Total expenditure from charitable activities was £439,595 (2022: £399,943) of which support costs totalled £41,400 (2022: £42,877). The Charity made no donations during the year (2022: £1,000 to the National Childbirth Trust). This resulted in a surplus of £213,268 (2022: £557). The Trustees consider the financial position to be satisfactory.
Ian Armitage has formally committed to continue to provide financial support to Kindred Squared so that it will meet its obligations as they fall due for the foreseeable future, and for a period of at least 12 months from the date of approval of these financial statements.
Reserves policy
The Charity’s policy for unrestricted funds (which have not been designated for a specific use) should be maintained at a level equivalent to between six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised.
The Charity's reserves at 31 May 2023 were £306,975 (2022: £93,707). As such, the Trustees are satisfied that the level of reserves at 31 May 2023 was appropriate.
Plans for the future
Despite greater coverage of early years issues, particularly the expansion and funding of early childcare and education, it is still the case that our nation does not allocate enough of our scarce resources of money, time, attention and skills to the task of bringing up our youngest citizens, as measured by the developmental milestones achieved at 4 years of age. New data this year shows some increase in public awareness of the issue of the early years, but still too little real understanding of the critical nature of the first years of child development in underpinning and shaping our futures. Our new three year strategy therefore sees a sharper focus than ever on raising public awareness. We will expand our team to ensure we are skilled to drive forward our public-facing campaign, continuing to collaborate with private, public and third sector partners. The next twelve months will also be an opportunity to lobby political parties in the run up to support public messaging with a sea-change in the status, prioritisation and importance given to the early years.
Thanks go to our team of energetic, smart and driven staff and contractors for their achievements over the past year. Nothing happens in a young enterprise without committed hard working people. We also thank all of the partner organisations we have worked with who have played a huge part in advancing the early years agenda.
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Kindred Squared
(A charitable company limited by guarantee)
TRUSTEES’ ANNUAL REPORT (incorporating the Directors’ Report)
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.
27/02/24
Approved by the board of Trustees on ……………………………… and signed on its behalf by:
IAN ARMITAGE
Ian Armitage Chair
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(A charitable company limited by guarantee) Independent Examiners Report for the year ended 31 May 2023
Kindred Squared
I report to the trustees on my examination of the accounts of Kindred Squared (‘the company’) for the year ended 31 May 2023, which are set out on pages 7 to 13.
Responsibilities and basis of report
As the trustees of the charitable company (and also its Directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charitable company’s financial statements as carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination, I have followed the Directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.
Independent examiner’s statement
Since the company'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 Institute of Chartered Accountants in England and Wales, 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 reasonable cause to believe that in any material respect:
-
accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
-
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102).
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.
Nicholas Sladden FCA DChA BFP The Institute of Chartered Accountants in England and Wales.
On behalf of RSM UK Tax and Accounting Limited 25 Farringdon Street London EC4A 4AB
Date: 27/02/24
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Kindred Squared (A charitable company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 May 2023
| Notes Income from: Donations Total income Expenditure on: Charitable activities 2 Net income and net movement in funds Fund balances brought forward Fund balances carried forward |
Unrestricted funds Year ended 31 May 2023 Year ended 31 May 2022 £ £ 652,863 400,500 652,863 400,500 439,595 399,943 213,268 557 93,707 93,150 306,975 93,707 |
Unrestricted funds Year ended 31 May 2023 Year ended 31 May 2022 £ £ 652,863 400,500 652,863 400,500 439,595 399,943 213,268 557 93,707 93,150 306,975 93,707 |
|---|---|---|
| 400,500 399,943 |
||
| 557 | ||
| 93,150 | ||
| 93,707 |
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Kindred Squared (A charitable company limited by guarantee) BALANCE SHEET As at 31 May 2023
Company Registration Number: 12633929
| Notes Current assets: Debtors 4 Cash at bank and in hand Creditors: Amounts falling due within one year 5 Net current assets and net assets 6 The funds of the Charity Unrestricted funds 6 |
2023 2022 £ £ - 19,909 329,985 97,493 |
|---|---|
| 329,985 117,402 (23,010) (23,695) |
|
| 306,975 93,707 |
|
| 306,975 93,707 |
For the year ended 31 May 2023, the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 (the Act) relating to small companies.
The Trustees’ and Directors’ responsibilities:
-
The members have not required the charitable company to obtain an audit of its financial statements for the year in question in accordance with section 476 of the Act; and
-
The Trustees and Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
27/02/24
Approved and authorised for issue by the Board of Trustees on ……………………….. and are signed on their behalf by
IAN ARMITAGE
Ian Armitage Chair
The notes on pages 10 to 13 form part of these financial statements.
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(A charitable company limited by guarantee) STATEMENT OF CASH FLOWS for the year ended 31 May 2023
Kindred Squared
| Notes | 2023 | 2022 | |
|---|---|---|---|
| £ | £ | ||
| Cash flows from operating activities | 8 | 232,311 | (17,567) |
| Interest paid | 181 | - | |
| ___ | ___ | ||
| Net cash generated from/(used in) | |||
| operating activities | 232,492 | (17,567) | |
| ___ | ___ | ||
| Change in cash and cash equivalents in | |||
| year | 232,492 | (17,567) | |
| Cash and cash equivalents brought | |||
| forward | 97,493 | 115,060 | |
| ___ | ___ | ||
| Cash and cash equivalents carried | |||
| forward | 329,985 | 97,493 |
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Kindred Squared (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 May 2023
1. Accounting Policies
Kindred Squared is a charitable company incorporated in England. The address of the Charity’s registered office is Third Floor, 20 Old Bailey, London, United Kingdom, EC4M 7AN.
The Charity’s principal activities are disclosed in the Trustees’ report.
Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charity’s governing document, the Companies Act 2006, 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 (FRS102) (effective 1 January 2019).
Kindred Squared meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
Going concern
The Charity has been funded by donations from Ian Armitage, who has indicated his willingness to continue to provide support for a period of at least twelve months from approval of the financial statements. On this basis, the Trustees consider it appropriate to prepare the financial statements on a going concern basis. There are no material uncertainties in making this assessment.
Donations
Donations are recognised in the period when the Charity has entitlement to the income, it is probable the income will be received and the monetary value can be measured with sufficient reliability. Donated services or facilities are included within the Statement of Financial Activities, where material, at the estimated fair value of an equivalent service or facility, where the benefit to the Charity is reasonably quantifiable and measurable.
Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
Charitable expenditure includes the direct costs of the activities. Where such costs relate to more than one category, they have been apportioned on a percentage basis.
Governance costs
Governance costs include all expenditure related to the governance of the Charity, including independent examination fees.
Funds
Unrestricted funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects.
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Kindred Squared (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 May 2023
1. Accounting policies (continued)
Taxation
Kindred Squared is a registered charity and undertakes activities which, under present legislation, are not subject to taxation.
Cash and cash equivalents
Cash and bank balances include cash and short term highly liquid investments with a maturity of three months or less from the date of acquisition.
Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method.
| 2. Expenditure on charitable activities Grants payable (page 12) Survey costs Campaign costs Project fees Consultancy fees Staff costs (see note 3) Travel Summer events Film production Early years meeting Recruitment Website fees Office rental Other expenses Accountancy Professional fees Bank charges Interest paid 2022 |
Unrestricted Funds Support costs £ Research £ Strategy and communications £ Total 2023 £ Total 2022 £ - - - - 1,000 - 51,516 - 51,516 85,328 - - 78,850 78,850 21,564 - 61,280 - 61,280 45,660 - - - - 20,129 - 48,615 145,844 194,459 157,500 - - 5,345 5,345 679 - - - - 12,197 - - - - 1,242 - - - - 767 - - - - 6,000 9,000 6,745 - 15,745 18,494 7,983 - - 7,983 4,180 5,974 - - 5,974 5,606 9,720 - - 9,720 6,750 7,770 - - 7,770 11,970 772 - - 772 877 181 - - 181 - |
|---|---|
| 41,400 168,156 230,039 439,595 399,943 |
|
| 42,877 187,395 169,671 - 399,943 |
Accountancy costs and professional fees above include amounts paid to the independent examiner of £2,940 (2022: £2,760) in relation to independent examination fees and £8,640 (2022: £4,823) relating to other services provided.
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Kindred Squared (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 May 2023
| 2. | Expenditure on charitable activities (continued) | ||
|---|---|---|---|
| Grants payable: | 2023 | 2022 | |
| £ | £ | ||
| National Childbirth Trust | - __ |
1,000 __ |
|
| 3. | Staff and trustee remuneration | ||
| 2023 | 2022 | ||
| Number | Number | ||
| The average number of monthly employees employed by the | |||
| charity (excluding trustees) was as follows: | 3 __ |
3 __ |
|
| 2023 | 2022 | ||
| £ | £ | ||
| Staff costs for the above persons: | |||
| Wages and salaries | 176,862 | 138,615 | |
| Social security | 14,259 | 16,866 | |
| Pension costs | 3,338 | 2,019 | |
| __ | __ | ||
| 194,459 __ |
157,500 __ |
||
| The number of employees whose emoluments as defined for | taxation purposes | amounted to over | |
| £60,000 in the year was as follows: | |||
| 2023 | 2022 | ||
| No | No | ||
| £80,001 - £90,000 | - | 1 | |
| £100,001 - £110,000 | 1 __ |
- __ |
|
| 4. | Debtors | 2023 | 2022 |
| £ | £ | ||
| Other debtors | - __ |
19,909 __ |
|
| 5. | Creditors: Amounts falling due within one year | 2023 | 2022 |
| £ | £ | ||
| Accruals | 17,385 | 16,501 | |
| Other taxation and social security | 4,779 | 6,631 | |
| Other creditors | 846 | 563 | |
| __ | __ | ||
| 23,010 __ |
23,695 __ |
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Kindred Squared (A charitable company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 May 2023
6. Analysis of net assets between funds
All assets represent unrestricted funds.
7. Related Party Transactions
During the year, the Charity received unrestricted donations totalling £650,000 (2022: £400,000) from Mr Ian Armitage, a Trustee.
| 8. Notes to the statement of cash flows Cash generated from operations: Net surplus Finance costs Decrease/(increase) in debtors (Decrease)/increase in creditors Net cash inflow/(outflow) from operating activities _ |
2023 £ 213,268 (181) 19,909 (685) _ 232,311 |
2022 £ 557 - (19,909) 1,785 __ (17,567) |
|---|---|---|
9. Analysis of changes in net funds
| Analysis of changes in net funds | ||||
|---|---|---|---|---|
| 1 | June 2022 | Cash flows | 31 May 2023 | |
| £ | £ | £ | ||
| Cash at bank and in hand | 97,493 | 232,492 | 329,985 |
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