Registered number
07239641
Sure and Firm Foundations
Report and Financial Statements
31 December 2023
Sure and Firm Foundations
Report and accounts
Contents
Page
Charity Information 1
Trustees' Report 2
Independent Examiner's Report 7
Statement of Financial Activities 8
Statement of Financial Position 9
Statement of Changes in Charitable Funds 10
Statement of Cash Flows 11
Notes to the Financial Statements 12
Detailed Statement of Financial Activities 17
Detailed Income and Expenditure Account 18
Sure and Firm Foundations
Charity Information
Trustees
Wayne Bent
Marcia Jones
Independent examiners
Jacksons Chartered Accountants
First Floor, Albion House
Albion Street
Hull
HU1 3TE
Registered office
New Life Assembly Church Hall
55a Upland Road, East Dulwich
London
SE22 0DA
Company number
07239641
Charity number
1138204
Governing document
Memorandum of Association dated April 2010
Sure and Firm Foundations
Company number: 07239641
Trustees' Report
for the year ended 31 December 2023
The trustees, who are also directors for the purposes of company law, present their report and financial statements for the charitable company for the year ended 31 December 2023.
The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice (SORP): Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
This report is a combined annual report that also contains a directors’ report as required by company law.
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.
Principal activities
The charitable company's principal activity during the year continued to be the education of children below the compulsory school age.
Objectives and activities
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.
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.
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 we 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.
The Charity provides a safe working environment for visitors, members, workers and volunteers and any serious incidences are reported in accordance with our safeguarding policy. There were no serious incidents during the year ended 31 December 2023.
Fundraising
The Charity does not raise funds from the public in the form of donations.
The Charity does not use the services of a professional fundraiser or commercial participator in the process of raising funds. Also, the Charity (or any person acting on its behalf) is not subject to any voluntary scheme for regulating fundraising, or voluntary standard for fundraising in respect of activities on behalf of the Charity.
The Charity (or any person acting on its behalf) has not received any complaints in regard to its fundraising activities.
Activities during the year
Along with the general running of the nursery, other activities that took place during the year included fundraising for Macmillan Cancer and various other activities for the parents, children and staff i.e. Sports Day, Graduation and Christmas plays, drama, songs etc. .
Financial review
Principal sources of funding
The largest contribution to the Charity is from nursery fees paid by clients. Success is therefore measured by the number of admissions to the Nursery.
Financial review
The Charity achieved a surplus of £17,017 for the financial year. At 31 December 2023, the Charity held total funds of £155,873 – that is, £223,229 cash at the bank and in hand, £10,198 in the value of fixed assets, less creditors of £77,554. This, in all, is considered to be an appropriate level of funds to enable the Charity to pursue its objectives.
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 the forecasted level of reserves to allow for financial flexibility and stability in light of the Charity’s dependence on voluntary enrolments.
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.
Risk management
The trustees actively review, on a regular basis, the major risks that the Charity faces in maintaining reserves at the levels detailed above; in addition to an annual review of the controls over key financial systems carried out through an internal audit process.
Internal control risks are minimised by authorisation procedures for all financial transactions; and policies and procedures are in place to ensure compliance with health and safety regulations by, and for, staff, volunteers and visitors.
The trustees have identified the following principal risks and uncertainties facing the Charity and the steps taken to mitigate any of the significant risks.
1. Financial Uncertainties
Funding and Fees
Changes in funding or fluctuations in enrolment numbers can impact the
financial stability of the Nursery.
Operational Costs
Managing costs related to staffing, equipment, and facilities whilst maintaining affordability for parents.
2. Health and Safety Risks
Injuries and Accidents
Children are naturally curious and active, which can lead to falls, bumps, and other injuries. Regular risk assessments and childproofing measures are essential.
Illnesses and Infections
Young children are more susceptible to illnesses. Maintaining high hygiene standards and having clear policies for managing sick children would help mitigate this risk.
Building Maintenance
Ensuring the nursery premises are safe and well-maintained to prevent accidents and comply with safety standards.
3. Regulatory Compliance
Ofsted Inspections
Nurseries in the UK must comply with the Early Years Foundation Stage (EYFS) framework and are subject to regular inspections. Non-compliance can lead to penalties or closure.
Training and Qualifications
Ensuring that all staff have the necessary qualifications and ongoing training to meet regulatory requirements and provide high-quality care.
The trustees have also examined other operational and business risks which the Charity faces and confirm that they have taken steps to mitigate any significant risks.
Structure, governance and management
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.
Organisational structure
Sure and Firm Foundations operates as a nursery for children 5 years old and younger, under the trading name “My Favourite Nursery”. It is informally associated with New Life Assembly (Dulwich), a charity that operates as a church and from which Sure and Firm rents its premises.
At their regular meetings, the board members agree the broad strategy and areas of activity for the Charity and nursery, including consideration of grant making, investment, reserves and risk management policies and performance.
The trustees delegated the day-to-day management of the Charity to Marie St-Hilaire who is herself a trustee for New Life Assembly (Dulwich). The role involves coordinating with the local council, supervisory bodies (for example, Ofsted), as well the nursery manager who manages the nursery staff (administration, "room leaders" etc.).
Volunteers
There were 6 volunteers, excluding trustees, throughout the year who aided in the running of the Charity.
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.
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.
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”.
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.
There were no new or additional trustees recruited in the year to 31 December 2023.
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.
New trustees are encouraged to familiarise themselves with charity law, their responsibilities as trustees and with the Charity's rules and practices. These cover:
the obligations of Trustee Board;
the operational framework for the Charity;
the current financial position and revenue generation; and
future plans and objectives.
Trustees
The following persons served as trustees during the year:
Wayne Bent
Marcia Jones
Trustees' responsibilities
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.
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:
(i) to select suitable accounting policies and apply them on a consistent basis; and
(ii) to make judgements and estimates that are prudent and reasonable; as well as
c) to keep proper accounting records.
Disclosure of information to independent examiners
Each person who was a trustee at the time this report was approved confirms that:
so far as he is aware, there is no relevant audit information of which the Charity's independent examiner is unaware; and
he has taken all the steps that he ought to have taken as a trustee in order to make himself aware of any relevant audit information and to establish that the Charity's independent examiner is aware of that information.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
This report was approved by the board on 21 August 2024 and signed on its behalf.
Wayne Bent
Trustee
Sure and Firm Foundations
Independent Examiner's Report
to the members of Sure and Firm Foundations
I report to the trustees on my examination of the accounts of the above charitable company ('the Charity') for the year ended 31 December 2023 which are set out in pages 1 to 19.
Responsibilities and basis of report
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').
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.
The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice (SORP): Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Independent examiner’s statement
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.
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:
the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
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.
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.
Mark Jackson, BA FCA
(Senior Statutory Auditor)
for and on behalf of
Jacksons Chartered Accountants
First Floor, Albion House
Albion Street
Hull
HU1 3TE
21 August 2024
Sure and Firm Foundations
Statement of Financial Activities
for the year ended 31 December 2023
Notes 2023 2022
£ £
Income from charitable activities 2 629,787 623,050
Expenditure on charitable activities (29,248) (40,271)
Net operating income 600,539 582,779
Administrative expenses (584,527) (619,501)
Other operating income 1,005 -
Operating surplus/(deficit) 3 17,017 (36,722)
Movement in funds: Net income/(expenditure) 17,017 (36,722)
Reconciliation of funds
Net movement in funds 17,017 (36,722)
Total funds brought forward 138,856 175,578
Total funds carried forward 155,873 138,856
Sure and Firm Foundations
Company number: 07239641
Statement of Financial Position
as at 31 December 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 6 10,198 13,598
Current assets
Cash on deposit 215,754 160,145
Cash at bank 7,475 26,908
223,229 187,053
Creditors: amounts falling due within one year 7 (77,554) (61,795)
Net current assets 145,675 125,258
Net assets 155,873 138,856
Capital and reserves
Unrestricted funds 9 155,873 138,856
Total equity 155,873 138,856
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.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime.
Wayne Bent
Trustee
Approved by the board on 21 August 2024
Sure and Firm Foundations
Statement of Changes in Charitable Funds
for the year ended 31 December 2023
This schedule does not form part of the statutory accounts
Income and Total
Expenditure
account
£ £
At 1 January 2022 175,578 175,578
Deficit for the financial year (36,722) (36,722)
At 31 December 2022 138,856 138,856
At 1 January 2023 138,856 138,856
Surplus for the financial year 17,017 17,017
At 31 December 2023 155,873 155,873
Sure and Firm Foundations
Statement of Cash Flows
for the year ended 31 December 2023
Notes 2023 2022
£ £
Operating activities
Profit/(loss) for the financial year 17,017 (36,722)
Adjustments for:
Depreciation 3,400 4,533
Increase/(decrease) in creditors 15,759 (4,519)
36,176 (36,708)
Cash generated by/(used in) operating activities 36,176 (36,708)
Net cash generated/(used)
Cash generated by/(used in) operating activities 36,176 (36,708)
Net cash generated/(used) 36,176 (36,708)
Cash and cash equivalents at 1 January 187,053 223,761
Cash and cash equivalents at 31 December 223,229 187,053
Cash and cash equivalents comprise:
Cash at bank 223,229 187,053
Sure and Firm Foundations
Notes to the Financial Statements
for the year ended 31 December 2023
1 Summary of significant accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice (SORP): Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
Income
All income is recognised in the Statement of Financial Activities once the Charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.
Donated goods and services are recorded at their expected cost.
Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Plant and machinery at a rate of 25% of the net book value
Debtors
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.
Creditors
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.
Taxation
The charity is exempt from taxation under sections 521 to 536 of the Income Tax Act 2007 (ITA 2007).
Fund accounting: restricted and unrestricted funds
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
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.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Going concern
The accounts have been prepared on the going concern basis, which assumes that the Charity will be in operational existence twelve months from the date of approval of these accounts. The trustees are satisfied that this basis is appropriate.
The facts that support the conclusion of going concern are:-
• the Charity's income from charitable activities has increased from the previous year - from £623,050 to £629,787 this year;
• on 31 December 2023, the Charity held £215,754 cash on deposit and £7,475 cash at bank; and
• the Charity had an operating surplus of £17,017 this year.
There are no material uncertainties.
Provisions
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.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
Government grants
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).
2 Analysis of income from charitable activities 2023 2022
£ £
Nursery fees 629,787 623,050
By geographical market:
UK 629,787 623,050
3 Operating surplus/(deficit) 2023 2022
£ £
This is stated after charging:
Depreciation of owned fixed assets 3,400 4,533
4 Staff costs 2023 2022
£ £
Wages and salaries 365,132 370,179
Social security costs 31,885 30,491
Other pension costs 6,252 5,612
403,269 406,282
No employees received emoluments (excluding employer pension costs) of more than £60,000.
Average number of employees during the year 2023 2022
Administration and management 6 6
Operational/Nursery 18 18
Kitchen staff 1 1
Maintenance 1 1
26 26
5 Role played by general volunteers
Volunteers play a vital role in the running of the Charity and their contribution helps the Charity achieve its objectives.
6 Tangible fixed assets
Plant and machinery
At cost
£
Cost or valuation
At 1 January 2023 62,794
At 31 December 2023 62,794
Depreciation
At 1 January 2023 49,196
Charge for the year 3,400
At 31 December 2023 52,596
Carrying amount
At 31 December 2023 10,198
At 31 December 2022 13,598
7 Creditors: amounts falling due within one year 2023 2022
£ £
Trade creditors 1,800 1,650
Accruals and deferred income 75,754 60,145
77,554 61,795
8 Deferred income 2023 2022
£ £
At 1 January 60,145 63,314
Amounts added in current period 60,125 178,050
Amounts released to income from previous periods (44,516) (181,219)
At 31 December 75,754 60,145
Deferred income is deposits and advance receipts for Nursery fees.
9 Funds
2023 2022
£ £
At 1 January 138,856 175,578
Net income/(expenditure) for the financial year 17,017 (36,722)
At 31 December 155,873 138,856
Reserves
2023 2022
Restricted and unrestricted funds £ £
At 1 January Unrestricted funds 138,856 175,578
Net income for the financial year Unrestricted funds 17,017 (36,722)
At 31 December Unrestricted funds 155,873 138,856
Total funds carried forward 155,873 138,856
Unrestricted funds are available for use at the discretion of the trustees, in order to further the charity's objectives.
10 Analysis of net assets between funds
Unrestricted Restricted 2023 2022
funds funds £ £
Fixed assets 10,198 - 10,198 13,598
Current assets 223,229 - 223,229 187,053
Current liabilities (77,554) - (77,554) (61,795)
155,873 - 155,873 138,856
11 Related party transactions
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.
As stated in the trustees report - under 'Organisational structure', the trustees delegated the day-to-day management of the Charity to Marie St-Hilaire who is herself a trustee for New Life Assembly (Dulwich), a charity that operates as a church and from which Sure and Firm rents its premises.
The Rent charge was £26,000 for the year ended 31 December 2023, and £31,680 in the year to 31 December 2023.
12 Presentation currency
The financial statements are presented in Sterling, rounded to the nearest pound (£).
13 Legal form of entity and country of incorporation
Sure and Firm Foundations is an unincorporated charity and registered with the Charity Commission for England and Wales.
14 Principal place of business
The address of the charity's principal place of business and registered office is:
New Life Assembly Church Hall
55a Upland Road, East Dulwich
London
SE22 0DA
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