The trustees present their report and the financial statements for the year ended 31 March 2023.
The financial statements comply with current statutory requirements, the memorandum and articles of association, and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The Charity’s mission statement reads:
Our purpose is to relate to each child as a unique individual and tailor our care and teaching to their specific needs in order to equip each child with a love of learning that will help them to flourish and reach their full potential. Our vision is to invite children into a wonderful, playful, learning adventure; to continue to deliver a consistently excellent service to the communities we serve and be their first choice.
We are committed to:
celebrating diversity, promoting equality and fairness;
being inclusive regardless of physical or learning ability;
adults learning from children and children learning through play; and
prioritising the voice and the perspective of the child.
We will work in partnership with parents, carers, children, staff, volunteers, Trustees, funders and the wider community to realise our vision, values, and purpose. These commitments are underpinned by the Charity’s updated vision and values, which were developed by the whole staff team in 2021 and revised in 2022:
Connectedness - ‘To love and be loved’
Innovation – ‘Be curious’
Environmental Accountability - ‘Preparing for life in the changing world’
Communication - ‘Express Yourself’
Physical Health - ‘Leading a healthy lifestyle’
Emotional Well-being - ‘The freedom to be your true self’
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The Trustees are proud to relate the substantial achievements of the setting over the year April 2022- March 2023 during an unprecedented time of financial and recruitment pressure due to the aftermath of the Covid-19 pandemic and other national policy factors.
The Trustees have considered the Charity Commission's guidance on public benefit when determining the activities, the charity should undertake. We affirm that all our charitable activities are carried out to advance our charitable objectives for the public benefit. Our focus remains on childcare, education, and support services for families in the local community, and these activities are designed to further our charitable mission for the greater good of the public.
Financial and Management Changes
The beginning of the financial year 2022-23 marked a significant transformation for the nursery. A comprehensive management restructuring replaced the post of General Manager with a Centre Director, who now oversees a Centre Manager and Business and Operations Manager. This restructure, prompted by the departure of the former General Manager, was a strategic move to enhance the senior management's resilience, a factor that was severely tested during the Covid-19 pandemic. In addition to these operational changes, our Trustee Board also underwent substantial alterations in November 2022, with the appointment of a new Chair and Treasurer.
Strategic Planning
A three-year Strategic Plan was meticulously developed by our senior management team, in consultation with all staff and the Trustees. The plan was established in response to several immediate priorities, including:
Ensuring the financial sustainability of the Centre amidst rising costs and diminishing funding income, particularly when accounting for inflation.
Addressing the needs of the local community, whose members are grappling with the challenges of a cost-of-living crisis.
Maintaining Staffing Levels
Our reputation for investing in staff well-being and their personal and career development through funded training has allowed us to retain an adequate level of staffing, including bank staff, ensuring the uninterrupted provision of our services. Despite facing substantial demand for places at all stages of our setting, this commitment to our staff and their development remains a top priority.
Fiscal Challenges and Reserves
While we have been successful in keeping our doors open and sustaining our essential services, it has not come without financial cost. During this financial year, our reserves have been depleted due to the increased costs associated with the pandemic and the cost-of-living crisis. To address these financial pressures, we have had to make difficult decisions regarding fee increases, albeit higher than we would prefer.
Outreach and Community Engagement
In tandem with our core childcare and education functions, we have continued to engage in substantial outreach activities aimed at benefiting the broader community. These activities, including allotment cultivation and fun with food/weaning classes, have been well-received and align with our broader social mission. We are particularly proud of our work in equality, diversity, and inclusion, exemplified by the establishment of the Early Years Forum for Anti-Racist Practice. Operating in an ethnically diverse area with pockets of economic disadvantage, our commitment to the slogan "A sense of belonging, not just fitting in" has been deeply embedded in our practice over the past year.
OFSTED Rating
The Centre is registered with OFSTED and consistently receives positive feedback through the inspection process. Our most recent full OFSTED inspection in July 2022 resulted in a rating of "Good" for the quality of both education and care provided. This rating is a testament to our sustained high standards and continual improvement since the previous inspection in 2016. The requirements for a "Good" rating have become significantly more challenging in the intervening period, making this achievement even more notable.
Garden Project
In late 2022, we embarked on a long-awaited garden project, successfully securing external funding to initiate the first two phases of our existing development plan. External fundraising for the garden project remains an ongoing priority. This project not only enhances the experience provided by the Centre but also facilitates outreach work, enabling local families who cannot or do not attend regular sessions to benefit from our services.
We are committed to our mission of delivering vital services to the community and are appreciative of the ongoing support from our donors, volunteers, and partners, which makes our work possible. We look forward to another year of making a positive impact on the lives of children and families in our community.
The charity's financial stability is crucial to fulfilling our mission. In the past year, we generated an income of £883,376, with £39,064 designated as restricted income. Our total expenditure was £908,029, with £38,329 being used for restricted purposes. Consequently, our net expenditure for the year was £24,653. As of 31 March 2023, our net assets stood at £551,023, comprising £172,818 in unrestricted funds and £378,205 in restricted funds.
Reserves Policy
In response to the risks our organisation faces, we have devised a reserves policy. We aim to maintain unrestricted funds at a level of at least three months' worth of expenditure, equivalent to approximately £227,000. As of 31 March 2023, our free reserves stood at £101,629 (compared to £122,357 in 2022).
Risk Management
Our commitment to risk management remains strong. We have established a comprehensive risk register and conduct regular reviews to address external risks and ensure our charity's continued success in the evolving political and funding landscape. Our internal control measures are aimed at minimising risks and include strict transaction and project authorisation procedures. We also prioritise the safety and well-being of our staff, volunteers, service users, and visitors, with a focus on protecting children. Furthermore, we uphold the principles of the Early Years Foundation Stage (EYFS) and maintain the Bristol Standard Quality Framework to ensure consistent quality in all aspects of our operations.
The coming year is focused on enhancing the financial resilience of our Centre. We are planning to commence the next phase of our garden redevelopment in the Autumn of 2023, thanks to external fundraising efforts. Staff recruitment and retention will remain a challenge as we move into the next financial year. We are also anticipating substantial changes to funding following the government's announcement in the 2023 budget, introducing a period of uncertainty.
Governing Document
Our organisation is a charitable company limited by guarantee, established on 4 December 1996, and registered as a charity on 18 December 1996. Our governance structure is defined by a Memorandum of Association, the Companies Act 2006 and the Charities Act 2011, which outlines the object and powers of the charitable company and is governed under our Articles of Association. In the event of winding up, members are obligated to contribute an amount not exceeding £1.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Recruitment and Appointment of Management Committee
The directors of our company also serve as charity trustees, known as members of the Management Committee. According to the requirements set in the Memorandum and Articles of Association, the members of the Management Committee are elected annually at the organisation's Annual General Meeting. We prioritise reflecting the diverse needs of our community by maintaining a majority of local parents on the committee while drawing on the expertise of local partner organisations and individuals.
Trustee Induction and Training
Most of our trustees are familiar with our charity's work, having either used our services or worked in partnership with us. Prospective trustees receive information about The Centre and the trustee role. We conduct enhanced Disclosure & Barring Service and Ofsted suitability checks for trustees. To enhance their effectiveness, trustees are encouraged to attend various training opportunities, including Understanding the Roles and Responsibilities of Trustees and Safeguarding Children.
Organisational Structure
The Centre is overseen by a Management Committee comprising no less than three members. This committee meets at least six times a year and is responsible for shaping our organisation's strategic direction and policies. Presently, our committee consists of eight members, all of whom are parents with direct experience of our services. A scheme of delegation is in place, and the day-to-day responsibilities for service provision rest with our senior management team, which includes a Director supported by a Centre Manager and Business and Operations Manager. The senior management team ensures the charity delivers specified services, meets performance targets, provides essential staff support, and keeps trustees informed for informed decision-making.
Related Parties
We closely align our work with both local and national policies in line with our charitable objectives. We have developed strong working relationships with the Early Years and Childcare Service within Bristol City Council, which supports our mission within the broader goals of development in our work area. We receive funding from the Local Authority through a Service Level Agreement, and our work is regularly reviewed under this agreement, in addition to assessments by Bristol City Council against its Quality Improvement Framework.
We also maintain partnerships with local organisations that share our objectives and benefit from the support of national and local umbrella organizations, such as The National Council for Voluntary Organisations, Bristol Association for Neighbourhood Daycare (BAND), and VOSCUR.
As an OFSTED-approved organization registered with Bristol City Council, we offer free nursery education for two, three, and four-year-olds. We collaborate with other professionals and organisations to provide effective support for children and families, including health visitors, educational psychologists, and speech and language therapists. Our staff is dedicated to supporting community-focused childcare developments locally and nationally.
Conclusion
The Centre continues to make significant contributions to our community, despite the challenges we face. We remain dedicated to our mission of serving families in need, ensuring their well-being, and providing essential services. We appreciate the ongoing support of our donors, volunteers, and partners, without whom our work would not be possible.
Independent Examiner
In accordance with company law, as the charity’s Trustees, we certify that:
So far as we are aware, there is no relevant audit information of which the charity’s Independent Examiner is unaware; and
As the Trustees of the charity, we have taken all steps that ought to have been taken in order to make ourselves aware of any relevant audit information and to establish that the charity’s Independent Examiner is aware of that information.
The Trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Easton Community Children's Centre Limited (the charity) for the year ended 31 March 2023.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Income from charitable activities
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Easton Community Children's Centre Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Russell Town Avenue, Easton, Bristol, BS5 9JF, UK.
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities 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 (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grant income
Income from charitable activities
Parent nursery fees
3&4 year old funding
2 year olds enhanced provision
Registration fees
Special educational needs funding
Income from charitable activities
Parent nursery fees
3&4 year old funding
2 year olds enhanced provision
Registration fees
Special educational needs funding
Job Retention Scheme grants
Nursery fees and subsidies
Nursery fees and subsidies
Agency staff cover
Activities and nursery sundries
Catering
Light and heat
Telephone
Printing, postage, stationery
Rates, including water
Repairs and maintenance
Cleaning and waste disposal
Insurance
Advertising and PR
Computer costs
Travel and subsistence
UK entertainment
Legal and professional
The independence examination fee was £2,000 (2022: £2,300)
The average monthly number of employees during the year was:
The Key management personnel of the charity comprise the trustees, Director, Centre Manager, Business and Operation Manager, Office manager, Outreach Programme Manager, 6 Room leaders. The total employee benefits of the key management personnel of the charity were £195,353 (2022: £251,168).
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £33,474 (2022 - £35,718).
There were no disclosable related party transactions during the year (2022 - none).
The charity had no debt during the year.