Charity Registration No: 297542
Hopscotch Under Fives (Company Limited by Guarantee)
Annual Report and Accounts for the year ended 31 March 2023
Hopscotch Under Fives (Company Limited by Guarantee )
Annual Report and Accounts for the year ended 31 March 2023
| Contents | |
|---|---|
| Report of the Directors | 3 |
| Report of the Independent Examiner | 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Cash flows statement | 11 |
| Notes to the financial statements | 12 |
Hopscotch Under Fives (Company Limited by Guarantee)
Report of the Trustees and the Directors for the year ending 31 March 2023
The Trustees of the charity and the Directors of the company present their report and the financial statements of the charity for the year ended 31 March 2023. The annual report serves the purposes of both a trustees’ report and a directors’ report under company law.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s constitution and the SORP - 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) issued on 16 July 2014 and the Charities Act 2011.
Reference and administrative information
| Charity Number: | 297542 |
|---|---|
| Company Number: | 1877236 |
| Principal and | 215a Chevening Road |
| Registered Office: | London, NW6 6DT |
| Bankers: | CAF Bank |
| 25 Kingshill Avenue | |
| Kings Hill | |
| West Malling | |
| Kent | |
| ME19 4JQ | |
| Independent Examiner: | Margaret Anne Payne BA, FCA |
| Payne & Co | |
| Chartered Accountants | |
| 16 Ingham Road | |
| London | |
| NW6 1DE | |
| Trustees and Directors: | |
| Directors: | David Hodge |
| Vivien Moxam - Centre Manager | |
| Katherine Lawson | |
| Trustees: | David Hodge |
| Katherine Lawson | |
| Julia Richardson | |
| Christelle Pearson |
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Hopscotch Under Fives (Company Limited by Guarantee)
Report of the Trustees and the Directors for the year ending 31 March 2023
Structure, governance and management
The charity is constituted as a company limited by guarantee. The company is governed by the provisions of its Memorandum and Articles of Association, dated 14 January 1985, as amended.
The Management Committee, who are directors and trustees under the Charities Act, consist of a Chairperson, Secretary and between five to ten other people.
The Management Committee meets once a term to exercise their governance.
The trustees set the level of remuneration for the Charity’s key management personnel based on market rate.
The members of the Management Committee who served during the year to 31 March 2023 were:
Directors
David Hodge Vivien Moxam Katherine Lawson
Trustees
David Hodge Katherine Lawson Julia Richardson Christelle Pearson
Recruitment and appointment of Trustees
The Management Committee are all elected at the Annual General meeting and hold office until the next Annual General Meeting. Between Annual General Meetings, the Management Committee may co-opt up to five additional members who will hold office until the next Annual General Meeting.
A general meeting of the members of the company may remove any member of the committee and the committee itself may remove committee members failing to attend regular meetings.
New trustees are inducted and trained by the existing trustees.
Objectives and activities for the public benefit
The charity’s object and its principle activity is to utilise its resources to benefit the public in such a way as to advance the education of children from twelve months to five years old, by the provision of full-time and part-time nursery places and drop-in facilities. The children are mainly, but not exclusively, resident in the Queens Park area of Brent in North West London.
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the company’s aims and objectives.
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Hopscotch Under Fives (Company Limited by Guarantee)
Report of the Trustees and the Directors for the year ending 31 March 2023
STRATEGIC REPORT
Achievements and performance
During the year to 31 March 2023, an average of 45 children attended the nursery per day and an average of 20 children attended the drop-in stay and play sessions. The nursery room for children from twelve months to two years old, which opened in September 2014, has continued to prove very successful, particularly for working parents in the area.
Financial review
The charity receives income mainly from the Nursery Education Grant and from school fees.
Unrestricted income for the year from school fees was £521,830 (2022 £555,209). Restricted income for the year from the Nursery Education Grant was £18,689 (2022 £32,201). Other trading income for the year from renting out the venue was £2,673 (2022 £2,320). Interest income was £178 (2022 NIL).
Expenditure of unrestricted funds was £580,531 (2022 £528,281). Restricted expenditure was £18,689 (2022 £32,201).
This left a surplus of expenditure over income for the year of £55,850 (2022 a surplus of income over expenditure of £29,248) all of which was unrestricted in both years.
Going concern
The lease has been renewed until August 2028 and the Trustees and Directors consider the Charity to be a going concern for at least this period of time. For this reason it continues to adopt the going concern basis in preparing the financial statements.
Plans for future period
The trustees are satisfied that the current activities will ensure that the charity continues to operate successfully for the foreseeable future. As the lease extension is only until August 2028, the trustees do not feel further expansion would be in the interests of the nursery.
Reserves policy
The building is owned by Brent council and for some years the nursery has been under threat of closure. The company maintains reserves at a level to ensure that sufficient funds are available to cover any potential redundancies which may be incurred as a result of the loss of the lease on the premises from which it operates. A designated fund has been built up to enable the company to continue to retain staff whilst under notification of possible redundancies right up to the time that the nursery has to be closed.
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Hopscotch Under Fives (Company Limited by Guarantee)
Report of the Trustees and the Directors for the year ending 31 March 2023
The potential redundancy cost at 31 March 2023, based on statutory pay plus six weeks severance pay, was £57,123 (2022 £67,020). The designated funds at the balance sheet date were £57,123 (2022 £67,020).
Risk Management
The major risks to which the charity is exposed have been identified by the trustees and are actively reviewed on a regular basis, covering operational and financial aspects.
The trustees consider the main risk to the charity’s objective is the potential loss of its lease on the premises from which it operates and this has been taken into consideration in setting the reserves policy. The trustees have also identified the lack of new trustees coming on board and the Government’s plans for expansion of free childcare over the coming two years as risks to the continuation of the business.
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Hopscotch Under Fives
(Company Limited by Guarantee)
Statement of Trustees and Directors’ responsibilities
The directors of the company are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The Trustees confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.
Company law requires the Directors to prepare financial statements for each financial period which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Directors 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 Charities Statement of Recommended Practice;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures being disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Insofar as the Directors are aware:
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there is no relevant accounting information of which the charitable company's Independent Examiner is unaware;
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the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant Independent Examination information and to establish that the Independent Examiner is aware of that information.
Signed on behalf of the Board:
David Hodge, Director
11 December 2023
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Hopscotch Under Fives (Company Limited by Guarantee)
Report of the Independent Examiner
I report on the accounts of the company for the year ended 31 March 2023, which are set out on pages 9 to 19.
Respective responsibilities of Trustees and examiner
The Trustees of the charity and the Directors of the company are responsible for the preparation of the accounts. The charity’s Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an Independent Examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of ICAEW.
Having satisfied myself that the charity is not subject to audit under Part 16 of the Companies Act 2006 and is eligible for Independent Examination, it is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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to state whether particular matters have come to my attention.
Basis of Independent Examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently, no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.
Independent Examiner’s statement
In connection with my examination, no matter has come to my attention:
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which gives me reasonable cause to believe that in any material respect the requirements:
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(a) to keep accounting records in accordance with section 386 of the Companies Act 2006; and
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(b) to prepare accounts which accord with the accounting records and to comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice:
- have not been met; or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Margaret Anne Payne BA, FCA Payne & Co Chartered Accountants 16 Ingham Road London NW6 1DE
11 December 2023
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Hopscotch Under Fives (Company Limited by Guarantee)
Statement of financial activities
(Incorporating the income & expenditure account) for the year ended 31 March 2023
| Restricted | |||||
|---|---|---|---|---|---|
| Notes | Unrestricted | Income | Total Funds | Total Funds | |
| Funds | Funds | 2023 | 2022 | ||
| £ | £ | £ | £ | ||
| Income | |||||
| Income from charitable activities | 2 | 521,830 | 18,689 | 540,519 | 587,410 |
| Other trading activities - Venue hire | 2,673 | - | 2,673 | 2,320 | |
| Income from investments (interest income) | 178 | - | 178 | - | |
| Total income | 524,681 | 18,689 | 543,370 | 589,730 | |
| Expenditure | |||||
| Expenditure on charitable activities | 3 | 580,531 | 18,689 | 599,220 | 560,482 |
| Total resources expended | 580,531 | 18,689 | 599,220 | 560,482 | |
| Net income/expenditure for the year | (55,850) | - | (55,850) | 29,248 | |
| Reconciliation of Funds: | |||||
| Total funds brought forward from 1 | |||||
| April 2022 | 256,353 | - | 256,353 | 227,105 | |
| Total funds carried forward at 31 | |||||
| March 2023 | 200,503 | - | 200,503 | 256,353 |
The notes on pages 12 to 19 form part of these financial statements
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Hopscotch Under Fives (Company Limited by Guarantee)
Balance sheet As at 31 March 2023
| Notes Fixed Assets Tangible assets 6 Intangible assets 7 Current assets Debtors 8 Cash at bank and in hand Current liabilities Creditors falling due within one year 9 Net current assets/(liabilities) Total assets less current liabilities Funds of the charity Restricted income funds 11 Unrestricted funds Total charity funds |
13,369 201,336 214,705 (23,860) |
2023 £ 8,558 1,100 9,658 190,845 200,503 - 200,503 200,503 |
2022 £ 11,919 1,700 13,619 140 289,490 289,630 (46,896) 242,734 256,353 - 256,353 256,353 |
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies.
The members have not required the charitable company to obtain an audit in accordance with Section 476 of the Companies Act 2006.
The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.
The financial statements were approved by the Board of Directors on 11 December 2023 and were signed on their behalf by:
David Hodge – Director
The notes on pages 12 to 19 form part of these financial statements
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Hopscotch Under Fives (Company Limited by Guarantee)
Statement of cash flows For the year ended 31 March 2023
| Notes Cash flows from operating activities Net cash provided by (used in ) operating activities 12 Cash flows from investing activities 13 Change in cash and cash equivalents in the reporting period Cash and cash equivalents at 1 April 2022 Cash and cash equivalents at 31 March 2023 14 |
2023 2022 £ £ (88,154) 54,466 (4,599) |
|---|---|
| (88,154) 49,867 289,490 239,623 |
|
| 201,336 289,490 |
The notes on pages 12 to 19 form part of these financial statements
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Hopscotch Under Fives (Company Limited by Guarantee)
Notes to the financial statements For the year ended 31 March 2023
1 ACCOUNTING POLICIES
Statutory information
Hopscotch Under Fives (Company Limited by Guarantee) is a private company, limited by guarantee, registered in England and Wales. The company’s registered number and registered office address can be found on the Company Information page.
The presentation currency of the financial statements is the pound Sterling (£).
Basis of Accounting
The financial statements have been prepared under the historical cost convention and in accordance with the SORP - 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) issued on 16 July 2014, the Companies Act 2006 and where applicable the Charities Act 2011.
Incoming resources
Incoming resources are recognised when receipt of income is probable and the amount can be quantified with reasonable accuracy.
Voluntary help is invaluable to the charity but is not included in the financial statements, since the monetary value is impossible to quantify. The value of assets and facilities donated, where impossible to quantify, is not included in the financial statements.
Liabilities
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Tangible fixed assets
All fixed assets are recorded at cost.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Equipment - 25% and 33.33% on written down value Computer equipment - 25% and 33.33% on written down value Fixtures & Fittings - 50% on cost
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Hopscotch Under Fives (Company Limited by Guarantee)
Notes to the financial statements (contd) For the year ended 31 March 2023
Intangible fixed assets
All fixed assets are recorded at cost.
Amortisation is provided at the following annual rates in order to write off each asset over its estimated useful life:
Website - 33.33% on cost
Resources expended
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the activity.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
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 profit or loss in the period to which they relate.
Funds structure
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor.
Unrestricted funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the directors, at their discretion, have created a fund for a specific purpose.
Support costs
All support costs relate to expenditure for charitable activities.
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Hopscotch Under Fives (Company Limited by Guarantee)
Notes to the financial statements (contd) For the year ended 31 March 2023
2 INCOME FROM CHARITABLE ACTIVITIES
| Nursery Education Grant School fees |
2023 2022 Unrestricted funds Restricted funds £ £ Total Total £ £ - 18,689 18,689 32,201 521,830 - 521,830 555,209 |
|---|---|
| 521,830 18,689 540,519 587,410 |
3 EXPENDITURE ON CHARITABLE ACTIVITIES
| Direct costs Staff costs Visiting staff and training Equipment renewals and toys School visit expenses and travel Advertising |
2023 2022 Unrestricted funds Restricted funds Total Total £ £ £ £ 427,782 18,689 446,471 421,587 5,738 - 5,738 5,794 9,646 - 9,646 10,736 2,604 - 2,604 2,892 - - - 24 445,770 18,689 464,459 441,033 |
|---|---|
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Hopscotch Under Fives (Company Limited by Guarantee)
Notes to the financial statements (contd) For the year ended 31 March 2023
| Support costs Premises costs: -Rent and rates -Utilities -Waste collection and cleaning -Maintenance and redecoration -Gardening -Housekeeping and refreshments Depreciation of equipment Amortisation of website Governance costs: -Independent examination -Professional fees -Computer and internet -Telephone -Printing, postage and stationery -Ofsted annual fee General expenses Bank charges Other support costs: -Insurance Total Charitable Activities |
2023 2022 Unrestricted funds Restricted funds Total Total £ £ £ £ 32,125 - 32,125 32,094 5,579 - 5,579 5,318 32,040 - 32,040 27,253 25,062 - 25,062 16,305 2,249 - 2,249 5,622 6,661 - 6,661 6,719 3,361 - 3,361 4,011 600 - 600 100 3,240 - 3,240 3,240 5,578 - 5,578 3,535 1,616 - 1,616 2,175 531 - 531 506 8,082 - 8,082 9,309 50 - 50 50 655 - 655 48 1,047 - 1,047 836 6,285 - 6,285 2,328 |
|---|---|
| 134,761 - 134,761 119,449 |
|
| 580,531 18,689 599,220 560,482 |
4 STAFF COSTS
| Staff costs during the year were: Wages and Salaries Social security costs Pension costs Total |
2023 2022 £ £ 408,885 383,989 29,756 31,864 7,830 5,734 |
|---|---|
| 446,471 421,587 |
The average number of employees during the year was 15 and no employee received employee benefits of more than £60,000 during the period.
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Hopscotch Under Fives (Company Limited by Guarantee)
Notes to the financial statements (contd) For the year ended 31 March 2023
5 RELATED PARTY TRANSACTIONS AND TRUSTEES’ REMUNERATION
No trustee nor any person connected with them, has received, or is due to receive, any remuneration for the period, nor obtained any financial benefit, directly or indirectly, from the charity’s funds. There were no trustees’ expenses paid for the period.
No director nor any person connected with them, has received, or is due to receive, any remuneration for the period, nor obtained any financial benefit, directly or indirectly, from the charity’s funds for their services as directors. There were no directors’ expenses paid for the period.
The total amount paid during the year to key management, including directors, for services other than in their capacity as director was £52,000 (2022: £48,000).
6 TANGIBLE FIXED ASSETS
| COST At 1 April 2022 Additions At 31 March 2023 DEPRECIATION At 1 April 2022 Charge for the year At 31 March 2023 NET BOOK VALUE 31 March 2023 31 March 2022 |
Computers & Equipment £ 45,049 - 45,049 33,130 3,361 36,491 8,558 11,919 |
Fixtures & Fittings Total £ £ 2,172 47,221 - - 2,172 47,221 2,172 35,302 - 3,361 2,172 38,663 - 8,558 - 11,919 |
|---|---|---|
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Hopscotch Under Fives (Company Limited by Guarantee)
Notes to the financial statements (contd) For the year ended 31 March 2023
INTANGIBLE FIXED ASSETS
7
| COST At 1 April 2022 Additions At 31 March 2023 AMORTISATION At 1 April 2022 Charge for the year At 31 March 2023 NET BOOK VALUE 31 March 2023 31 March 2022 |
Website Total £ £ 1,800 1,800 - - 1,800 1,800 100 100 600 600 700 700 1,100 1,100 1,700 1,700 |
|---|---|
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
8
| Trade debtors Other debtors |
2023 £ - 13,369 13,369 |
2022 £ - 140 |
|---|---|---|
| 140 |
9 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Other taxation and social security Accruals Trade creditors Other creditors |
2023 2022 £ £ 7,061 8,661 5,544 12,922 9,964 24,696 1,291 617 23,860 46,896 |
|---|---|
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Hopscotch Under Fives (Company Limited by Guarantee)
Notes to the financial statements (contd) For the year ended 31 March 2023
10 LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
| Within one year Between one and two years Between two and 5 years |
2023 2022 £ £ 34,645 30,000 37,962 12,500 113,886 - 186,493 42,500 |
|---|---|
11 RESTRICTED FUNDS
During the year £18,689 was received from the Nursery Education Grant for the provision of assisted places. £18,689 was expended during the year in the relevant areas and £nil remains as restricted funds at the balance sheet date.
12 RECONCILIATION OF NET INCOME/(EXPENDITURE)TO NET FLOW FROM OPERATING ACTIVITIES
| 13 Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjusted for: Depreciation (note 6) Amortisation (note 7) (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by /(used in) Operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of tangible fixed assets Net cash provided by /(used in) investing activities |
2023 2022 £ £ (55,850) 29,248 3,361 4,011 600 100 (13,229) 397 (23,036) 20,710 (88,154) 54,466 2023 2022 £ £ - (4,599) - (4,599) |
|---|---|
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Hopscotch Under Fives (Company Limited by Guarantee)
Notes to the financial statements (contd) For the year ended 31 March 2023
14 ANALYSIS OF CASH AND CASH EQUIVALENTS
| Cash in hand and at bank Total cash and cash equivalents |
2023 2022 £ £ 201,336 289,490 201,336 289,490 |
|---|---|
15 CONTINGENT LIABILITY
The building from which the charity operates is owned by Brent council and for some years the nursery has been under threat of closure as a result of uncertainty over the renewal of the lease.
The potential redundancy cost at 31 March 2023, based on statutory pay plus six weeks severance pay, was £57,123 (2022 £67,020). The designated funds at the balance sheet date were £57,123 (2022 £67,020).
The lease has been agreed until August 2028 and the charity is a going concern for the foreseeable term of the new lease.
16 COMPANY LIMITED BY GUARANTEE
Every member of the company has undertaken to pay such an amount as may be required, not exceeding £1, towards the charitable company’s assets on a winding up. This undertaking is given whilst they remain members and for a period of one year thereafter.
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