Sure and Firm Foundations |
Company number: 07239641 |
Trustees' Report |
for the year ended 31 December 2022 |
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The trustees, who are also directors for the purposes of company law, present their report and financial statement for the charitable company for the year ended 31 December 2022. |
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This report is a combined annual report that also contains a directors’ report as required by company law. |
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The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006. |
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The members have not required the company to obtain an audit in accordance with section 476 of the Act. |
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Principal activities |
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The charitable company's principal activity during the year continued to be the education of children below the compulsory school age. |
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Objectives and activities |
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The charitable company's principal objective is the provision of recreational facilities for children below the compulsory school age in the interest of their good social welfare, and doing so without discrimination and in a safe and satisfying pre-school environment. |
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This objective finds tangible expression in our core service “My Favourite Nursery” which operates as a nursery for children aged 0 to 5 years, offering a range of activities in our Upland Road premises. |
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Public benefit |
We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. We exist to serve people in our community without discrimination. We strive to promote social welfare through the provision of facilities aimed at improving the social and physical wellbeing of those in our local community. |
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Activities during the year |
Along with the general running of the nursery, the following activities took place during the year: |
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we participated in World Book Day and a book token was given to each Nursery child; |
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we took part in the 'Happy Body, Healthy Me' National Campaign – the theme for 2022 was ‘Right from The Start’, and the Nursery received for this which is proudly displayed on our wall; |
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a Sports Day was held in June with enthusiastic participation from parents; and |
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in October, we celebrated a Multicultural Month with various activities throughout the month. |
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The Charity also donated to other charities, such as children homes, during the year. This in related in these financial statements as 'Missions and donations to other charities'. |
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Financial review |
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Principal sources of funding |
Nursery fees paid by clients provide the main source of income for the Charity. |
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Financial review |
The Charity incurred a deficit of £36,722 for the financial year. At 31 December 2022, the Charity held total funds of £138,855; £187,052 of which was cash at the bank and in hand. (The rest is the value of fixed assets, £13,598 less creditors of £61,795.) This, in all, is considered to be an appropriate level of funds to enable the Charity to pursue its objectives. |
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Reserves policy |
The trustees have a forecast of the level of free reserves, (that is, those funds not tied up in fixed assets) that the Charity will require to sustain its day-to-day obligations. Whilst our actual free reserves may prove sufficient, it is the trustees’ view that it is prudent to maintain sufficient free reserves to allow for financial flexibility. |
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Investment policy |
The trustees have adopted a strong socially responsible investment policy for the reserves of the Charity. This policy, in tandem with the need to fulfil our statutory obligations, has the objective of investing in such a way that the principles of socially responsible investment are promoted. A further factor is the need to have ready access to our reserves, as long-term funding cannot be guaranteed, so for the current period, we have placed surplus funds in deposit accounts. |
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Risk management |
The trustees actively review, on a regular basis, the major risks that the Charity faces in maintaining reserves at the levels stated above, in addition to an annual review of the controls over key financial systems carried out through an internal audit process. |
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Internal control risks are minimised by authorisation procedures for all financial transactions. Policies and procedures are in place to ensure compliance with health and safety regulations and this being for staff, volunteers, clients and visitors. |
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Structure, governance and management |
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Governing document |
Sure and Firm Foundations is a charitable organisation limited by guarantee, incorporated in April 2010 and registered as a charity on 28 September 2010. The company was established under a memorandum of association which established the objects and powers of the company and is governed under its articles of association. In the event of the company being wound up, members are required to contribute an amount not exceeding £10. |
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Organisational structure |
At their regular meetings, the board members agree the broad strategy and areas of activity for the charitable company, including consideration of grant making, investment, reserves and risk management policies and performance. |
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The operation of the nursery is delegated to managers who are overseen by the directors. The managers have responsibility for the day to day operational management of the resource centres, supervision of the staff teams and for ensuring that teams continue to develop their skills and working practices in line with good practice. |
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Volunteers |
There was 1 volunteer during the year who came in on a regular basis to help with breakfast each morning, and also would participate in group activities with the children such as reading, circle time, outings to the park etc; in addition, some parents volunteered to read stories, teach their native languages and sing and play instruments in group activities. |
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There was an average of 5 volunteers throughout the year who aided in the running of the Charity. |
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Remuneration policy |
The Charity's remuneration policy is to set pay at or above the statutory minimum wage. Salary costs are consistent and static for permanent staff but additional, temporary staff will need to be employed as determined by the number of children attending the nursery in accordance with regulations regarding the staff to children ratio. |
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Recruitment and appointment of trustees |
The company directors are also charity trustees for the purposes of charity law and, under the company's Articles, are members of the Trustee Board which is the Charity's primary management body. Under the requirements of the Memorandum and Articles of Association the members of the Board are elected by the members to serve for a period of five years after which they must be re-elected at the next Annual General Meeting. |
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Much of the Charity's work inevitably focuses upon the operation and maintenance of the children's nursery which operates under the name of “My Favourite Nursery”. |
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The board of Trustees seeks to ensure that the needs of this group are appropriately reflected through the diversity of the trustee body. To enhance the potential pool of directors, the Charity has, through selective advertising and networking with voluntary organizations active in the sector, sought to identify those who would be willing to become members of the charity and use their own experience to assist the Charity. |
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There were no new or additional trustees recruited in the year to 31 December 2022. |
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Trustee induction and training |
Many trustees are already familiar with the practical work of the Charity being active members of the Charity themselves and from being involved in other charities, churches and/or organisations. |
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New trustees are encouraged to familiarise themselves with charity law, their responsibilities as trustees and with Charity's rules and practices. They are invited and encouraged to attend a series of short training sessions to familiarise themselves with the Charity and the context within which it operates. These cover: |
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the obligations of Trustee Board members; |
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the operational framework for the charity; |
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the current financial position and revenue generation; and |
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future plans and objectives. |
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Trustees |
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The following persons served as trustees during the year: |
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Wayne Bent |
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Marcia Jones |
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Trustees' responsibilities |
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The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Charity and enable them to ascertain to ensure that the accounts comply with the Charities Act 2011 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. |
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The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website as well as: |
a) |
to prepare financial statements which show a true and fair view; |
b) |
in preparing financial statements: |
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(i) |
to select suitable accounting policies and apply them on a consistent basis; and |
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Responsibilities and basis of report |
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As the Charity’s trustees and directors, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’) and the Companies Act 2006 ('the 2006 Act'). |
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I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. |
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Independent examiner’s statement |
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The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination as a qualified member of the Institute of Chartered Accountants of England and Wales. |
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I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect: |
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the accounting records were not kept in accordance with section 130 of the Charities Act; or |
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the accounts did not accord with the accounting records; or |
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the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination. |
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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 accounts to be reached. |
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Mark Jackson, BA FCA |
(Senior Statutory Auditor) |
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for and on behalf of |
Jacksons Chartered Accountants |
First Floor, Albion House |
Albion Street |
Hull |
HU1 3TE |
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29 September 2023 |
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Plant and machinery |
at a rate of |
25% |
on the net book value |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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The charity is exempt from taxation under sections 521 to 536 of the Income Tax Act 2007 (ITA 2007). |
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Fund accounting: restricted and unrestricted funds |
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Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
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Restricted funds can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
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Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
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Going concern |
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The accounts have been prepared on the going concern basis, which implies that the Trustees believe the Charity will be in operational existence twelve months from the date of approval of these accounts. |
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There are no material uncertainties. |
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Provisions |
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Provisions (i.e. liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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Government grants |
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The accrual model (FRS 102 24.5C-G) was applied in producing these accounts; therefore grants were recognised as either relating to revenue (over the period in which the Charity recognises the related costs for which the grant was intended to compensate) or relating to assets (over the expected useful life of the asset). |
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2 |
Analysis of income from charitable activities |
2022 |
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2021 |
£ |
£ |
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Nursery fees |
623,050 |
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659,037 |
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By geographical market: |
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UK |
623,050 |
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659,037 |
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3 |
Operating (deficit)/surplus |
2022 |
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2021 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
4,533 |
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6,044 |
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4 |
Staff costs |
2022 |
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2021 |
£ |
£ |
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Wages and salaries |
362,837 |
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336,186 |
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Social security costs |
30,491 |
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25,845 |
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Other pension costs |
12,954 |
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4,969 |
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406,282 |
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367,000 |
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No employees received emoluments (excluding employer pension costs) of more than £60,000. |
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Average number of employees during the year |
Number |
Number |
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Administration and management |
6 |
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6 |
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Operational/Nursery |
18 |
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18 |
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Kitchen staff |
1 |
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1 |
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Maintenance |
1 |
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1 |
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26 |
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26 |
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5 |
Role played by general volunteers |
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Volunteers play a vital role in the running of the Charity and their contribution helps achieve the Charity its objectives. |
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6 |
Tangible fixed assets |
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Plant and machinery |
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At cost |
£ |
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Cost or valuation |
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At 1 January 2022 |
62,794 |
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At 31 December 2022 |
62,794 |
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Depreciation |
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At 1 January 2022 |
44,663 |
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Charge for the year |
4,533 |
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At 31 December 2022 |
49,196 |
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Carrying amount |
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At 31 December 2022 |
13,598 |
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At 31 December 2021 |
18,131 |
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7 |
Creditors: amounts falling due within one year |
2022 |
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2021 |
£ |
£ |
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Trade creditors |
1,650 |
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3,000 |
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Accruals and deferred income |
60,145 |
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63,314 |
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61,795 |
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66,314 |
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8 |
Deferred income |
2022 |
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2021 |
£ |
£ |
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At 1 January |
63,314 |
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61,844 |
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Amounts added in current period |
178,050 |
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58,831 |
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Amounts released to income from previous periods |
(181,219) |
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(57,361) |
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At 31 December |
60,145 |
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63,314 |
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Deferred income is deposits and advance receipts for Nursery fees. |
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9 |
Funds |
2022 |
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2021 |
£ |
£ |
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At 1 January |
175,577 |
|
142,711 |
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Net (expenditure)/income for the financial year |
(36,722) |
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32,866 |
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At 31 December |
138,855 |
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175,577 |
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Unrestricted funds are available for use at the discretion of the trustees, in order to further the charity's objectives. |
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10 |
Analysis of net assets between funds |
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Unrestricted |
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Restricted |
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2022 |
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2021 |
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funds |
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funds |
£ |
£ |
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Fixed assets |
13,598 |
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- |
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13,598 |
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18,131 |
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Current assets |
187,052 |
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- |
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187,052 |
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223,760 |
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Current liabilities |
(61,795) |
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- |
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(61,795) |
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(66,314) |
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138,855 |
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- |
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138,855 |
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175,577 |
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11 |
Related party transactions |
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No trustees were paid any remuneration (compensation) or received any other benefits from employment with the Charity or a related entity nor did any trustee claim expenses or had their expenses met by the Charity. |
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12 |
Presentation currency |
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The financial statements are presented in Sterling, rounded to the nearest pound (£). |
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13 |
Legal form of entity and country of incorporation |
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Sure and Firm Foundations is an unincorporated charity and registered with the Charity Commission for England and Wales. |
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14 |
Principal place of business |
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The address of the charity's principal place of business and registered office is: |
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New Life Assembly Church Hall |
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55a Upland Road, East Dulwich |
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London |
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SE22 0DA |