Sure and Firm Foundations |
Company number: 07239641 |
Trustees' Report |
for the year ended 31 December 2023 |
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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. |
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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. |
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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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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 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. |
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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. |
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Fundraising |
The Charity does not raise funds from the public in the form of donations. |
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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. |
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The Charity (or any person acting on its behalf) has not received any complaints in regard to its fundraising activities. |
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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. . |
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Financial review |
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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. |
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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. |
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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 detailed 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; and policies and procedures are in place to ensure compliance with health and safety regulations by, and for, staff, volunteers and visitors. |
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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 |
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Funding and Fees |
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Changes in funding or fluctuations in enrolment numbers can impact the financial stability of the Nursery. |
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Operational Costs |
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Managing costs related to staffing, equipment, and facilities whilst maintaining affordability for parents. |
2. |
Health and Safety Risks |
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Injuries and Accidents |
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Children are naturally curious and active, which can lead to falls, bumps, and other injuries. Regular risk assessments and childproofing measures are essential. |
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Illnesses and Infections |
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Young children are more susceptible to illnesses. Maintaining high hygiene standards and having clear policies for managing sick children would help mitigate this risk. |
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Building Maintenance |
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Ensuring the nursery premises are safe and well-maintained to prevent accidents and comply with safety standards. |
3. |
Regulatory Compliance |
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Ofsted Inspections |
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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. |
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Training and Qualifications |
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Ensuring that all staff have the necessary qualifications and ongoing training to meet regulatory requirements and provide high-quality care. |
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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. |
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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 |
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. |
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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. |
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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.). |
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Volunteers |
There were 6 volunteers, excluding trustees, 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 2023. |
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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 the Charity's rules and practices. These cover: |
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the obligations of Trustee Board; |
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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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(ii) |
to make judgements and estimates that are prudent and reasonable; as well as |
c) |
to keep proper accounting records. |
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Plant and machinery |
at a rate of |
25% |
of 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 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. |
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The facts that support the conclusion of going concern are:- |
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• the Charity's income from charitable activities has increased from the previous year - from £623,050 to £629,787 this year; |
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• on 31 December 2023, the Charity held £215,754 cash on deposit and £7,475 cash at bank; and |
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• the Charity had an operating surplus of £17,017 this year. |
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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 |
2023 |
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2022 |
£ |
£ |
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Nursery fees |
629,787 |
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623,050 |
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By geographical market: |
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UK |
629,787 |
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623,050 |
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3 |
Operating surplus/(deficit) |
2023 |
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2022 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
3,400 |
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4,533 |
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4 |
Staff costs |
2023 |
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2022 |
£ |
£ |
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Wages and salaries |
365,132 |
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370,179 |
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Social security costs |
31,885 |
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30,491 |
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Other pension costs |
6,252 |
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5,612 |
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403,269 |
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406,282 |
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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 |
2023 |
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2022 |
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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 the Charity achieve 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 2023 |
62,794 |
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At 31 December 2023 |
62,794 |
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Depreciation |
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At 1 January 2023 |
49,196 |
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Charge for the year |
3,400 |
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At 31 December 2023 |
52,596 |
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Carrying amount |
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At 31 December 2023 |
10,198 |
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At 31 December 2022 |
13,598 |
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7 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Trade creditors |
1,800 |
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1,650 |
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Accruals and deferred income |
75,754 |
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60,145 |
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77,554 |
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61,795 |
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8 |
Deferred income |
2023 |
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2022 |
£ |
£ |
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At 1 January |
60,145 |
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63,314 |
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Amounts added in current period |
60,125 |
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178,050 |
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Amounts released to income from previous periods |
(44,516) |
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(181,219) |
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At 31 December |
75,754 |
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60,145 |
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Deferred income is deposits and advance receipts for Nursery fees. |
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9 |
Funds |
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2023 |
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2022 |
£ |
£ |
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At 1 January |
138,856 |
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175,578 |
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Net income/(expenditure) for the financial year |
17,017 |
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(36,722) |
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At 31 December |
155,873 |
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138,856 |
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Reserves |
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2023 |
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2022 |
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Restricted and unrestricted funds |
£ |
£ |
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At 1 January |
Unrestricted funds |
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138,856 |
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175,578 |
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Net income for the financial year |
Unrestricted funds |
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17,017 |
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(36,722) |
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At 31 December |
Unrestricted funds |
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155,873 |
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138,856 |
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Total funds carried forward |
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155,873 |
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138,856 |
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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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2023 |
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2022 |
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funds |
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funds |
£ |
£ |
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Fixed assets |
10,198 |
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- |
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10,198 |
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13,598 |
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Current assets |
223,229 |
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- |
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223,229 |
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187,053 |
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Current liabilities |
(77,554) |
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- |
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(77,554) |
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(61,795) |
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155,873 |
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- |
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155,873 |
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138,856 |
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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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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. |
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The Rent charge was £26,000 for the year ended 31 December 2023, and £31,680 in the year to 31 December 2023. |
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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 |