CHARITY REGISTRATION NUMBER: 1198316
Babyzone
Financial Statements
31 March 2024
BURGESS HODGSON LLP
Chartered accountants & statutory auditor Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN
Babyzone
Financial Statements
Year ended 31 March 2024
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent auditor's report to the members | 10 |
| Statement of financial activities | 14 |
| Statement of financial position | 15 |
| Statement of cash flows | 16 |
| Notes to the financial statements | 17 |
Babyzone
Trustees' Annual Report
Year ended 31 March 2024
The trustees present their report and the financial statements of the charity for the year ended 31 March 2024.
Reference and administrative details
| Registered charity name | Babyzone | |
|---|---|---|
| Charity registration number | 1198316 | |
| Principal office | Scale Space | |
| 58 Wood Lane | ||
| London | ||
| W12 7RZ | ||
| United Kingdom | ||
| The trustees | ||
| C S Mindenhall | ||
| P Radcliffe | (Appointed 13 June 2023) | |
| S Hesz | ||
| L Cary-Elwes | ||
| L Legassick | ||
| J Cushion | ||
| Auditor | Burgess Hodgson LLP | |
| Chartered accountants & statutory auditor | ||
| Camburgh House | ||
| 27 New Dover Road | ||
| Canterbury | ||
| Kent | ||
| CT1 3DN |
- 1 -
Babyzone
Trustees' Annual Report (continued)
Year ended 31 March 2024
Structure, governance and management
Governing Document
BABYZONE is a Charity registered with the Charity Commission on 21 March 2022.
The objects of the CIO are:
1) to advance the education of, and to develop the capacity and skills of, parents and carers of children, and children themselves aged between 0 to 5 in England and Wales using an accessible approach to allow all families to access a structured offer that enables them to better engage in their children's earliest education and development; the benefit of which is an increase in the number of babies that will receive early engagement from their carers which evidence tells us will lead to increased emotional resilience, the development of vital speech and language skills and consequential reduction in the attainment gap; and
2) to promote social inclusion and equality and diversity by utilising an accessible approach to deliver object (1), with the aim of (i) demonstrating the value of the accessible approach in reaching the previously unsupported families that would benefit from the services the most, (ii) putting accessibility and the needs of families at the heart of the provision of the services and (iii) sharing knowledge with other social programmes that fail to reach the people who need their services about the benefits of using an accessible approach; the benefit of which is (a) increased engagement from those people that need the services the most, (b) less waste of funds as the programmes will have increased participation and (c) a more engaged and inclusive community.
Recruitment and appointment of trustees
The first trustees were the subscribers to the constitution as notified to the Charity Commission as the first trustees of the charity. A person appointed as a trustee thereupon becomes a member of the charity and a trustee who ceases to hold office for any reason thereupon ceases to be a member of the charity. Trustees have the power to appoint any person to be a trustee who is willing to act as such. New trustees will be recruited according to the needs of the charity and the suitability of possible candidates. A majority approval of existing trustees would lead to their appointment.
The constitution states that the number of members (trustees) shall have no maximum and shall not be less than three.
Full details of the rules are contained in the charity's constitution, dated on registration on 21 March 2022, which may be inspected at the charity's registered office.
Organisational Structure
BABYZONE is governed by its Trustee Board which is responsible for setting the strategic direction of the organisation and the policy of the Charity. The Trustees carry the ultimate responsibility for the conduct of BABYZONE and for ensuring that the Charity satisfies its legal and contractual obligations. Trustees meet approximately every two months. The Trustees delegate day-to-day management to Babyzone's senior management team.
Decisions are determined by a simple majority of votes. In the case of an equality of votes the Chair of the meeting has the casting vote.
Risk management
The Trustees have considered the major risks to which the Charity is exposed and have established suitable risk management and control procedures.
The main risks and controls are as follows:
- We do not raise adequate funding to continue the delivery of our service to our benefactors beyond the 2024/2025 financial year - the charity has two staff whose specific responsibilities include
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Babyzone
Trustees' Annual Report (continued)
Year ended 31 March 2024
fundraising and have pursued a broad fundraising strategy.
Objectives and activities
Who we are
BABYZONE, is a charity which provides for families with Children under six years old in deprived areas.
BABYZONE operates from Barking and Dagenham, Croydon, Warrington and Barnet Youth Zones.
BABYZONE provides essential support for disadvantaged families with children under six, offering developmental classes and resources to foster early childhood growth. Babyzone empowers parents and caregivers to overcome challenges associated with poverty, enhancing parenting skills and promoting better outcomes for their children.
Our Objectives
The objects of the CIO are:
1) to advance the education of, and to develop the capacity and skills of, parents and carers of children, and children themselves aged between 0 to 5 in England and Wales using an accessible approach to allow all families to access a structured offer that enables them to better engage in their children's earliest education and development; the benefit of which is an increase in the number of babies that will receive early engagement from their carers which evidence tells us will lead to increased emotional resilience, the development of vital speech and language skills and consequential reduction in the attainment gap; and
2) to promote social inclusion and equality and diversity by utilising an accessible approach to deliver object (1), with the aim of (i) demonstrating the value of the accessible approach in reaching the previously unsupported families that would benefit from the services the most, (ii) putting accessibility and the needs of families at the heart of the provision of the services and (iii) sharing knowledge with other social programmes that fail to reach the people who need their services about the benefits of using an accessible approach; the benefit of which is (a) increased engagement from those people that need the services the most, (b) less waste of funds as the programmes will have increased participation and (c) a more engaged and inclusive community.
Our Activities
We run community hubs in deprived areas which give families with pre-school children access to:
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Evidence-based developmental classes which are designed to improve a child's developmental outcomes and give parents the tools to support their children in the home learning environment.
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A community of over 200 families from their area, with shared lived experience, from which to make friends, draw advice and reduce isolation.
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Access to our partner statutory and charitable services in a safe, warm and stigma free location meaning families have access to support such as a Baby Bank, nutritional advice, vaccination support, midwives, health visitors, social workers, parenting classes and home, work and financial advice.
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A free play area, enabling children to socialise and make friends, building social capital which will be invaluable in later life.
We use an accessible approach because we know many families choose not to engage with other services due to the friction, stigma and anxiety derived from needing to fill out extensive forms. Babyzone only asks families for their post-code and the age bracket of their child, has no timetables and has warm and engages underserved and represented sections of the community.
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Babyzone
Trustees' Annual Report (continued)
Year ended 31 March 2024
Achievements and performance
Overview
This year has marked a stepwise change for Babyzone; we continued our mission to support families with children under five through evidence-based, accessible, and community-focused services whilst broadening and deepening our provision and expanding our footprint. Our work has reached more families than ever before, with new hubs, expanded programming, and strengthened partnerships driving significant impact across our communities.
Fundraising
We are tremendously grateful to our generous donors for enabling us to continue and expand our work this year. We wish to thank The AKO Foundation, Purposeful Ventures, The 29th May 1961 Charity, Blenheim Chalcot and Charles and Lara Mindenhall alongside other donors who wish to remain anonymous.
Expansion and Reach
New Locations: We opened a new Babyzone in Warrington (March 2024) and set the conditions to launch Babyzone Hammersmith & Fulham (May 2024), which will bring our total to five hubs. These new locations have since become vital community spaces, offering a range of services under one roof to families in need.
Scale of Impact: Across our network, we hosted over 21,000 family visits, supported 4,500 children, and delivered 3,100 evidence-informed classes. These classes strengthen parent-child relationships, directly support early childhood development, and equip parents with tools to create nurturing and developing environments at home.
Evidence-Informed Programming
Our classes are designed to help families learn and grow together through play, exploration, and bonding. This year, highlights included:
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Toddler Sense: 578 sessions reaching 8,300 families, offering sensory exploration and learning through music and dance.
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Baby Sensory: 491 sessions attended by 4,300 families, fostering cognitive and sensory development.
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Reading Fairy: 400 sessions engaging 4,100 families, promoting early literacy through storytelling and recital.
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Dinky Medics: 409 sessions attended by 3,700 families, helping children explore medical environments through play.
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Arts and Crafts: 148 sessions attended by 1,300 families, encouraging creativity and mindfulness.
These sessions have equipped parents with practical skills and confidence to extend learning at home, ensuring that our impact continues beyond the walls of our hubs.
Community Engagement
Parent Ambassador Programme: We launched a new initiative to empower parents in promoting Babyzone within their local communities. Our Parent Ambassadors actively connect with families, help them to navigate everything on offer at Babyzone and encourage greater participation in our hubs.
Croydon: We provided a safe, welcoming space for Ukrainian families, helping them access essential supplies and trauma recovery resources while fostering connections with their new community.
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Babyzone
Trustees' Annual Report (continued)
Year ended 31 March 2024
Warrington: We established a unique identity, welcoming families from diverse backgrounds and offering access to statutory services in a non-intimidating environment.
Collaborative Partnerships
Partnerships have been central to our success. This year, we worked with over 140 organizations to deliver vital support to families:
Little Village: Together, we provided 315 baby bundles to families in urgent need, meeting their material requirements. Home-Start Warrington: Our collaboration created a true community feel, integrating statutory and voluntary services to ensure families received holistic support. Wellcome Leap and Cambridge University: Our partnership advanced research into infant brain development, contributing to innovative methods to optimize cognitive and emotional outcomes during the critical first 1,000 days.
Impact on Families
Our work has made a tangible difference in the lives of families:
Positive Outcomes: 97% of parents reported that Babyzone improved their parenting experience, and 95% noted that their child's development had benefited. Community Building: 90% of our parents frequently shared they have met other parents with similar backgrounds and experience, learnt from other parents and made friends at Babyzone.
Lessons Learned
Opening our new hubs taught us valuable lessons about community-led service design. By employing local staff, engaging parents in governance, and maintaining flexibility, we've tailored our services to reflect the unique needs of each area.
Looking Ahead
We have ambitious plans for the future:
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New Locations: having successfully launched two more Babyzones in the period, we would like to continue to scale our place-based, community hubs across the country.
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Developed Programming: We will continue to refine and expand our evidence-based classes, ensuring they reflect our communities and meet the evolving needs of families.
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Stronger Partnerships: We will deepen our collaborations with local authorities, healthcare providers, and charities to ensure families have seamless access to vital resources.
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Advocacy: We will advocate for greater recognition and investment in early years support, emphasising the importance of the parent-child bond and the role of parents as a child's first teacher.
Conclusion
This year has been a remarkable one for Babyzone, marked by growth, collaboration, and meaningful impact. Together with our partners, supporters, and families, we are building a brighter future for children across the UK, ensuring every child has the fair start they deserve.
Babyzone reports its impact in line with the academic year. The performance of Babyzone is presented for the 23/24 academic year.
Public benefit
All the activities of Babyzone (as summarised above) are undertaken to further its charitable purposes for public benefit. The provision of a high-quality, barrierless early engagement service for children aged 0-5 and their parents and carers responds to a clear, ongoing demand from families for better support. Although providing a service to all families, Babyzone will focus on attendance and participation by families from disadvantaged backgrounds, measured as the bottom three deciles of the national indices of deprivation. This will lead to improved outcomes for children and their families, including:
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Babyzone
Trustees' Annual Report (continued)
Year ended 31 March 2024
-
Increased emotional resilience
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Developed vital speech and language skills
-
Reduced attainment gap
-
Increased engagement from those families that need the services the most
-
Less waste of funds as the programmes will have increased participation
-
A more engaged and inclusive community
Babyzone's services are essential to the well-being of young children and their families in the local community. Our accessible approach ensures that everyone has access to its services, regardless of their circumstances.
The Trustees of BABYZONE believe they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.
Volunteers' contribution
Throughout the period all members of the Board of Trustees made invaluable voluntary contributions to the Charity's work in terms of governance, professional and business experience, financial planning, fundraising and leading initiatives across the charity. Such contributions were, on average, equivalent to five full days each calendar month.
We are also tremendously grateful to our volunteers at each Babyzone, who's contribution on average, was one full day per working week.
Investment Activities
Under the constitution, the charity has the power to make any investment which the Trustees see fit. Investments are made where required to further the aims and objects of the Charity. Currently, the Charity does not currently hold any investments other than cash on deposit with CAF Bank and Wise.
Financial review
A summary of the results for the year is shown below:
| £ | |
|---|---|
| Incoming resources | 508,621 |
| Outgoing resources | 550,154 |
| Net outgoing resources | 41,533 |
The charity continues to cultivate further donations from a variety of sources as outlined below.
Reserves Policy
The Board of Trustees of BABYZONE has established a reserves policy which appropriately reflects the risks to which the Charity is exposed. The reserves policy does not consider expenditure which is linked to restricted projects and therefore covered by restricted funds.
In reviewing the potential costs that could arise should a significant reduction in income be incurred, the Trustees have determined that unrestricted, 'free', reserves should be maintained at approximately 3 months running costs. The Trustees manage Babyzone's finances so that an adequate level of reserves can be maintained in compliance with the reserves policy. At 31 March 2024, the charity had total funds of £34,968, of which £19,318 were unrestricted and £15,650 were restricted.
Principal Funding Sources
The Trustees wish to record their thanks to all those individuals and companies who have made donations or pledged their support to the work of the Charity; this includes all those listed above plus other anonymous donors.
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Babyzone
Trustees' Annual Report (continued)
Year ended 31 March 2024
Future plans
In the next year, we will continue to deliver our service in Barking and Dagenham, Barnet, Croydon and Warrington enhancing the offering through increased evidence based class provision and broader and deeper partnerships within the community.
We will build the new Babyzone Hammersmith and Fulham offering, investing in outreach to ensure that our target beneficiaries are accessing the service. We will also work to develop and enhance the Babyzone offering by building partnerships with aligned organisations in the Community and broadening our offering of evidence-based classes.
Alongside our operational work to provide value for children and families from disadvantaged backgrounds, we will work to improve and diversify our fundraising position to ensure we can continue delivery of Babyzone beyond the next financial year and enable us to launch further Babyzones in the communities who need it most.
Related party transactions
Transactions with Future, Legacy, Warrington, WEST and Unitas Youth Zones
Background:
Babyzone, has entered into a facilities rental agreement with Future, Legacy, Warrington and Unitas Youth Zones, which are independent charities and members of the OnSide Youth Zone network. The Chair of Babyzone also serves as the Chair of OnSide Youth Zones. This disclosure outlines the transaction between Babyzone and the aforementioned Youth Zones, emphasising the fair market value and reasons for the transaction.
Nature of Transaction:
Babyzone has entered into an agreement to rent facilities and associated services from Future, Legacy, Warrington, West and Unitas Youth Zones for the purpose of conducting its charitable activities. This arrangement involves the payment of a rental fee per session to the Youth Zones. The payment encompasses all relevant costs associated with the facilities rental, which includes utilities, maintenance, and any other necessary expenses.
Rationale for Transaction:
Fair Market Value: Babyzone has diligently explored alternative facilities rental options to ensure it receives the services it requires at a reasonable cost. However, despite these efforts, Babyzone has been unable to identify alternative facilities that meet its standards and price point. The rental fee for each Youth Zone has been determined to be below the fair market value for similar facilities in the local area.
Partnership:
Future, Legacy, Warrington and Unitas Youth Zones are independent charities but are part of the OnSide Youth Zone network. The Chair of Babyzone also serves as the Chair of OnSide Youth Zones, establishing a partnership connection between the organizations. As a result of this connection, Babyzone has negotiated a discounted rate for facilities rental with the Youth Zones.
Conclusion:
The transaction between Babyzone and Future, Legacy, Warrington and Unitas Youth Zones for facilities rental and associated services has been conducted at a fair market value and is in the best interest of Babyzone in fulfilling its charitable mission. The partnership connection between the Chair of Babyzone and the Chair of OnSide Youth Zones has been transparently disclosed, and an independent review has confirmed the reasonableness of the transaction.
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Babyzone
Trustees' Annual Report (continued)
Year ended 31 March 2024
This disclosure is intended to provide transparency and demonstrate the due diligence carried out by Babyzone in its related third-party transaction with Future, Legacy, Warrington and Unitas Youth Zones.
Transactions with Blenheim Chalcot
Background:
During the financial year 2023/24, Babyzone entered into an secondment agreement with Blenheim Chalcot LTF involving the secondment of two staff members to support Babyzone's charitable operations. Blenheim Chalcot LTF is an entity where the Chair of Babyzone also serves as a Director. This disclosure outlines the transaction between Babyzone and Blenheim Chalcot.
Nature of Transaction:
Under this arrangement, two staff members were seconded from Blenheim Chalcot LTF to Babyzone at a discounted rate. The rates charged were independently assessed by our accountants to confirm that they were below standard market values.
The funds initially allocated to cover these costs were personally donated by the Chair of Babyzone - who also holds a directorship at Blenheim Chalcot LTF - thereby ensuring that Babyzone's own financial reserves were not diminished. In the subsequent financial year (2024/25), a decision was made to reverse all payments from Babyzone to Blenheim Chalcot LTF, resulting in no net transfer of funds between the two entities.
Rationale for Transaction:
The secondment of skilled staff at a discounted rate, combined with the Chair's personal donation covering these costs, allowed Babyzone to enhance its operational capacity while preserving its financial resources for the direct benefit of its beneficiaries. In addition to the seconded staff, Blenheim Chalcot LTF provided further in-kind support-spanning legal, HR, finance, training, and secretariat services-at no charge. This arrangement ensured that Babyzone received critical expertise and resources on a cost-effective, value-enhancing basis.
Conclusion:
The relationship between Babyzone and Blenheim Chalcot LTF was conducted with full transparency and at terms below fair market value, ensuring that Babyzone's interests were safeguarded. Independent review confirmed the reasonableness of the transaction, and the reversal of all related payments in the following financial year has resulted in the entire provision-both staff secondment and professional services-being accounted for as an in-kind benefit. This outcome aligns with Babyzone's mission, as it allows the organization to direct its funds toward its charitable activities while relying on pro bono, best-in-class support from a trusted related party.
This disclosure is intended to provide transparency and demonstrate the due diligence carried out by Babyzone in its related third-party transaction with Blenheim Chalcot.
Transaction with Corporate Donor
Background:
During the financial year 2023/24, Babyzone received an unrestricted donation of £55,000 from a corporate donor. One of Babyzone's trustees serves as a Non-Executive Director at this organisation. This disclosure outlines the transaction.
Nature of Transaction:
The corporate donor provided a £55,000 donation to Babyzone without imposing any restrictions or conditions on its use. This means the funds could be applied at Babyzone's discretion to any area of the charity's work. No preferences, stipulations, or influence on the charity's decision-making processes were associated with the donation.
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Babyzone
Trustees' Annual Report (continued)
Year ended 31 March 2024
Rationale for Transaction:
The donation was accepted by Babyzone after conducting thorough due diligence to ensure it aligned with the charity's mission and independence. Internal reviews, as well as independent oversight, confirmed that the corporate entity's philanthropic support would not compromise Babyzone's integrity, independence, or governance.
Conclusion:
The £55,000 donation from the corporate donor, whose Non-Executive Director also serves as a trustee of Babyzone, has been transparently disclosed. Adequate internal controls and due diligence measures were observed, confirming that the donation is in Babyzone's best interests and free of undue influence. This contribution, treated as a standard philanthropic gift, supports Babyzone's charitable activities and furthers its mission without impacting its decision-making processes.
Trustees' responsibilities statement
The trustees are responsible for preparing the trustees' report and the 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 these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
09/01/24
The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:
C S Mindenhall Trustee
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Babyzone
Independent Auditor's Report to the Members of Babyzone
Year ended 31 March 2024
Opinion
We have audited the financial statements of Babyzone (the 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 auditor's 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.
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Babyzone
Independent Auditor's Report to the Members of Babyzone (continued)
Year ended 31 March 2024
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
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adequate accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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.
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Babyzone
Independent Auditor's Report to the Members of Babyzone (continued)
Year ended 31 March 2024
Auditor's responsibilities for the audit of the financial statements
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 an auditor’s report 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 misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered; the nature of the industry, control environment.
We also consider the results of our enquiries of management, relating to their own identification and assessment of the risks of irregularities and possible related fraud. This includes reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness.
Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end, posting of unusual journals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit.
Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Babyzone
Independent Auditor's Report to the Members of Babyzone (continued)
Year ended 31 March 2024
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Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Collyer (Senior Statutory Auditor)
For and on behalf of Burgess Hodgson LLP Chartered accountants & statutory auditor Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN 09/01/2025
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Babyzone
Statement of Financial Activities
Year ended 31 March 2024
| Period from | |||||
|---|---|---|---|---|---|
| 21 Mar 22 to | |||||
| Year | to 31 Mar 24 | 31 Mar 23 | |||
| Unrestricted | Restricted | ||||
| funds | fundsTotal funds | Total funds | |||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 4 | 504,271 | 4,350 | 508,621 | 328,541 |
| -------------------------------- | ----------------------- | -------------------------------- | -------------------------------- | ||
| Total income | 504,271 | 4,350 | 508,621 | 328,541 | |
| ================================ | ======================= | ================================ | ================================ | ||
| Expenditure | |||||
| Expenditure on charitable activities | 5,6 | 549,454 | 700 | 550,154 | 252,040 |
| -------------------------------- | ----------------------- | -------------------------------- | -------------------------------- | ||
| Total expenditure | 549,454 | 700 | 550,154 | 252,040 | |
| ================================ | ======================= | ================================ | ================================ | ||
| -------------------------------- | ----------------------- | -------------------------------- | -------------------------------- | ||
| Net (expenditure)/income and net | |||||
| movement in funds | (45,183) | 3,650 | (41,533) | 76,501 |
|
| ================================ | ======================= | ================================ | ================================ | ||
| Reconciliation of funds | |||||
| Total funds brought forward | 64,501 | 12,000 | 76,501 | – | |
| -------------------------------- | ---------------------------- | -------------------------------- | -------------------------------- | ||
| Total funds carried forward | 19,318 | 15,650 | 34,968 | 76,501 | |
| ================================ | ============================ | ================================ | ================================ |
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 17 to 23 form part of these financial statements.
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Babyzone
Statement of Financial Position
31 March 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Tangible fixed assets | 11 | 18,759 | 19,895 |
| Current assets | |||
| Debtors | 12 | 116,470 | 116,778 |
| Cash at bank and in hand | 43,738 | 18,763 | |
| -------------------------------- | -------------------------------- | ||
| 160,208 | 135,541 | ||
| Creditors: amounts falling due within one year | 13 | 143,999 | 78,935 |
| -------------------------------- | -------------------------------- | ||
| Net current assets | 16,209 | 56,606 | |
| ---------------------------- | ---------------------------- | ||
| Total assets less current liabilities | 34,968 | 76,501 | |
| ---------------------------- | ---------------------------- | ||
| Net assets | 34,968 | 76,501 | |
| ============================ | ============================ | ||
| Funds of the charity | |||
| Restricted funds | 15,650 | 12,000 | |
| Unrestricted funds | 19,318 | 64,501 | |
| ---------------------------- | ---------------------------- | ||
| Total charity funds | 15 | 34,968 | 76,501 |
| ============================ | ============================ |
These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by: 09/01/2025
C S Mindenhall Trustee
The notes on pages 17 to 23 form part of these financial statements.
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Babyzone
Statement of Cash Flows
Year ended 31 March 2024
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net (expenditure)/income | (41,533) | 76,501 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 8,291 | 3,275 |
| Accrued expenses/(income) | 33,934 | (48,150) |
| Changes in: | ||
| Trade and other debtors | 308 | (4,778) |
| Trade and other creditors | 31,130 | 15,085 |
| ---------------------------- | ---------------------------- | |
| Cash generated from operations | 32,130 | 41,933 |
| ---------------------------- | ---------------------------- | |
| Net cash from operating activities | 32,130 | 41,933 |
| ============================ | ============================ | |
| Cash flows from investing activities | ||
| Purchase of tangible assets | (7,155) | (23,170) |
| ---------------------------- | ---------------------------- | |
| Net cash used in investing activities | (7,155) | (23,170) |
| ============================ | ============================ | |
| Net increase in cash and cash equivalents | 24,975 | 18,763 |
| Cash and cash equivalents at beginning of year | 18,763 | – |
| ---------------------------- | ---------------------------- | |
| Cash and cash equivalents at end of year | 43,738 | 18,763 |
| ============================ | ============================ |
The notes on pages 17 to 23 form part of these financial statements.
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Babyzone
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Scale Space, 58 Wood Lane, London, W12 7RZ, United Kingdom.
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 preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of financial activities.
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.
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Babyzone
Notes to the Financial Statements (continued)
Year ended 31 March 2024
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, non-charitable 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.
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Babyzone
Notes to the Financial Statements (continued)
Year ended 31 March 2024
3. Accounting policies (continued)
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:
Fixtures and fittings - 3 years straight line Equipment - 3 years 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.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Donations and legacies
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2024 | |
| £ | £ | £ | |
| Donations | |||
| Donations | 504,271 | 4,350 | 508,621 |
| ================================ | ======================= | ================================ | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Donations | |||
| Donations | 292,041 | 36,500 | 328,541 |
| ================================ | ============================ | ================================ |
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Babyzone
Notes to the Financial Statements (continued)
Year ended 31 March 2024
5. Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2024 | |
| £ | £ | £ | |
| Direct charitable activities | 359,121 | 700 | 359,821 |
| Support costs | 190,333 | – | 190,333 |
| -------------------------------- | -------------- | -------------------------------- | |
| 549,454 | 700 | 550,154 | |
| ================================ | ============== | ================================ | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Direct charitable activities | 107,205 | 24,500 | 131,705 |
| Support costs | 120,335 | – | 120,335 |
| -------------------------------- | ---------------------------- | -------------------------------- | |
| 227,540 | 24,500 | 252,040 | |
| ================================ | ============================ | ================================ |
6. Expenditure on charitable activities by activity type
| Activities | ||||
|---|---|---|---|---|
| undertaken | Support | Total funds | Total fund | |
| directly | costs | 2024 | 2023 | |
| £ | £ | £ | £ | |
| Direct charitable activities | 359,821 | 182,216 | 542,037 | 244,390 |
| Governance costs | – | 8,117 | 8,117 | 7,650 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 359,821 | 190,333 | 550,154 | 252,040 | |
| ================================ | ================================ | ================================ | ================================ | |
| Analysis of support costs | ||||
| Support | ||||
| costs | Total 2024 | Total 2023 | ||
| £ | £ | £ | ||
| Staff costs | 158,378 | 158,378 | 90,760 | |
| Premises | 777 | 777 | – | |
| Communications and IT | 46 | 46 | 2,962 | |
| General office | 22,436 | 22,436 | 18,965 | |
| Finance costs | (2) | (2) | (2) | |
| Governance costs | 8,152 | 8,152 | 7,650 | |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| 189,787 | 189,787 | 120,335 | ||
| ================================ | ================================ | ================================ | ||
| Net (expenditure)/income | ||||
| Net (expenditure)/income is stated after | charging/(crediting): | |||
| 2024 | 2023 | |||
| £ | £ | |||
| Depreciation of tangible fixed assets | 8,291 | 3,275 | ||
| Foreign exchange differences | – | 12 | ||
| ======================= | ======================= |
7. Analysis of support costs
8. Net (expenditure)/income
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Babyzone
Notes to the Financial Statements (continued)
Year ended 31 March 2024
9. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| Period from | ||
|---|---|---|
| Year to | 21 Mar 22 to | |
| 31 Mar 24 | 31 Mar 23 | |
| £ | £ | |
| Wages and salaries | 153,940 | 120,770 |
| Social security costs | 3,296 | 11,005 |
| Employer contributions to pension plans | 870 | 1,160 |
| -------------------------------- | -------------------------------- | |
| 158,106 | 132,935 | |
| ================================ | ================================ |
The average head count of employees during the year was 10 (2023: 6).
The number of employees whose remuneration for the year fell within the following bands, were:
| 2024 | 2023 | ||
|---|---|---|---|
| No. | No. | ||
| £60,000 | to £69,999 | – | 1 |
| ============== | ============== |
10. Trustee remuneration and expenses
The Trustees and certain other senior employees who have authority and responsibility for planning, directing and controlling the activities of the charity, are considered to be key management personnel. No Trustees received remuneration during the period.
11. Tangible fixed assets
| Fixtures and | ||||
|---|---|---|---|---|
| fittings | Equipment | Total | ||
| £ | £ | £ | ||
| Cost | ||||
| At 1 April 2023 | 21,972 | 1,198 | 23,170 | |
| Additions | 7,155 | – | 7,155 | |
| ---------------------------- | ----------------------- | ---------------------------- | ||
| At 31 March 2024 | 29,127 | 1,198 | 30,325 | |
| ============================ | ======================= | ============================ | ||
| Depreciation | ||||
| At 1 April 2023 | 3,052 | 223 | 3,275 | |
| Charge for the year | 7,892 | 399 | 8,291 | |
| ---------------------------- | ----------------------- | ---------------------------- | ||
| At 31 March 2024 | 10,944 | 622 | 11,566 | |
| ============================ | ======================= | ============================ | ||
| Carrying amount | ||||
| At 31 March 2024 | 18,183 | 576 | 18,759 | |
| ============================ | ======================= | ============================ | ||
| At 31 March 2023 | 18,920 | 975 | 19,895 | |
| ============================ | ======================= | ============================ | ||
| 12. | Debtors | |||
| 2024 | 2023 | |||
| £ | £ | |||
| Trade debtors | 1,200 | 500 | ||
| Prepayments and accrued income | 115,270 | 116,278 | ||
| -------------------------------- | -------------------------------- | |||
| 116,470 | 116,778 | |||
| ================================ | ================================ |
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Babyzone
Notes to the Financial Statements (continued)
Year ended 31 March 2024
13. Creditors: amounts falling due within one year
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Trade creditors | 46,025 | 4,091 |
| Accruals and deferred income | 97,784 | 63,850 |
| Social security and other taxes | – | 10,994 |
| Other creditors | 190 | – |
| -------------------------------- | ---------------------------- | |
| 143,999 | 78,935 | |
| ================================ | ============================ |
14. 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 £870 (2023: £1,160).
15. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | |||||
|---|---|---|---|---|---|
| At | At | ||||
| 1 April 2023 | Income | Expenditure | 31 March 2024 | ||
| £ | £ | £ | £ | ||
| General funds | 64,501 | 504,271 | (549,454) | 19,318 | |
| ============================ | ================================ | ================================ | ============================ | ||
| At | |||||
| 21 March | 20 | At | |||
| 22 | Income | Expenditure | 31 March 2023 | ||
| £ | £ | £ | £ | ||
| General funds | – | 292,041 | (227,540) | 64,501 | |
| ============== | ================================ | ================================ | ============================ | ||
| Restricted funds | |||||
| At | At | ||||
| 1 April 2023 | Income | Expenditure | 31 March 2024 | ||
| £ | £ | £ | £ | ||
| Restricted Funds | 12,000 | 4,350 | (700) | 15,650 | |
| ============================ | ======================= | ============== | ============================ | ||
| At | |||||
| 21 March | 20 | At | |||
| 22 | Income | Expenditure | 31 March 2023 | ||
| £ | £ | £ | £ | ||
| Restricted Funds | – | 36,500 | (24,500) | 12,000 | |
| ============== | ============================ | ============================ | ============================ |
- 22 -
Babyzone
Notes to the Financial Statements (continued)
Year ended 31 March 2024
16. Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2024 | |
| £ | £ | £ | |
| Tangible fixed assets | 18,759 | – | 18,759 |
| Current assets | 144,558 | 15,650 | 160,208 |
| Creditors less than 1 year | (143,999) | – | (143,999) |
| -------------------------------- | ---------------------------- | -------------------------------- | |
| Net assets | 19,318 | 15,650 | 34,968 |
| ================================ | ============================ | ================================ | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Tangible fixed assets | 19,895 | – | 19,895 |
| Current assets | 123,541 | 12,000 | 135,541 |
| Creditors less than 1 year | (78,935) | – | (78,935) |
| -------------------------------- | ---------------------------- | -------------------------------- | |
| Net assets | 64,501 | 12,000 | 76,501 |
| ================================ | ============================ | ================================ | |
| Analysis of changes in net debt | |||
| At | |||
| At 1 Apr 2023 | Cash flows | 31 Mar 2024 | |
| £ | £ | £ | |
| Cash at bank and in hand | 18,763 | 24,975 | 43,738 |
| ============================ | ============================ | ============================ |
17. Analysis of changes in net debt
18. Related parties
Page 7 of the trustees report discloses the entities and the nature of transactions with related entities. The total amount paid to the related parties is £18,889.
- 23 -