Registered number: SC203106
Charity number: SC029731
(A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
CONTENTS
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 MARCH 2024
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The Trustees present their annual report together with the audited financial statements of the charitable company for the year 1 April 2023 to 31 March 2024. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the charitable company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Objectives and aims
The objectives of the charitable company are:
1. To provide a quality affordable and inclusive childcare service for those people within the Liberton / Gilmerton Neighbourhood Partnership area who are excluded from key aspects of life. 2. To improve access to economic activity and learning opportunities for local parents and carers by providing childcare which will enable them to take up job, training and educational opportunities. 3. To provide a safe, pleasant and stimulating child-centered play care environment where children learn and broaden their experiences through participating in play activities.
Achievements and performance
a. Main achievements of the charitable company
Childcare Connections continues to provide affordable, inclusive and quality childcare to families, helping to remove one of the main barriers that prevents parents/carers taking up training and job opportunities. The out of school services offered before school, after school and through school holidays have facilitated the best possible service to more than 250 families during the year providing childcare for children attending 5 local primary schools and 2 high schools.
The number of children attending the service during 2023/24 has continued to increase however the level of growth has been slower than anticipated which is attributed to the change in working patterns of parents with a greater number of parents carrying out hybrid working. With the challenges of recruitment and retention of staffing across the sector the investment and development of staff has never been more important with Childcare Connections continuing as a real living wage employer. During the year we have had 1 member of staff working towards the PDA Childhood Practice level 9 award, and 2 staff and 1 apprentice working towards the SVQ3 (level 7) award in Social Services Children & Young People. In addition to formal qualifications all staff have attended in house team building and development days, training with local training providers and have been given ongoing access to an online training portal. Childcare Connections Board and Senior management team continue to be careful in the monitoring the use of reserves, income from parent fees, and funding from the City of Edinburgh Council. As the subsidised childcare funding reaches the end of its extended year the Board of Directors have provided support to the Senior management with plans for the services and the use of the financial income and review of outgoings for the sustainability of the service.
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
Financial review
The charitable company had net expenditure of £2,686 in the year (2023 - net income of £6,333). The main sources of funding continued to be from parental fees and funding from the Capital City Partnership.
a. Going concern
b. Reserves policy
Structure, governance and management
a. Constitution
The charity is a company limited by guarantee and is constituted by its Memorandum and Articles of Association. It is governed by a Board of Directors. The Directors make the strategic decisions regarding the charity and delegate to the staff the day to day operations.
b. Methods of appointment or election of Trustees
c. Organisational structure and decision-making policies
As an organisation we are seeking to maximise the skill base of those involved. This is achieved through encouraging staff training and development, and by attempting to attract Board members with a variety of skills and experience.
d. Policies adopted for the induction and training of Trustees
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
Structure, governance and management (continued)
e. Financial risk management
The trustees have a duty to identify and review the risks to which the charitable company is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Board of Directors conducts an annual review of the major risks to which the charitable company is exposed, and systems are then established to mitigate those risks.
Statement of Trustees' responsibilities
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
∙so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
∙that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, Sumer Auditco Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILDCARE CONNECTIONS LIMITED
We have audited the financial statements of Childcare Connections Limited (the 'charitable company') for the year ended
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILDCARE CONNECTIONS LIMITED (CONTINUED)
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
∙the Trustees' report has been prepared in accordance with applicable legal requirements.
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
∙adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of Trustees' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit; or
∙the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILDCARE CONNECTIONS LIMITED (CONTINUED)
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities and Trustee Investment (Scotland) Act 2005 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILDCARE CONNECTIONS LIMITED (CONTINUED)
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and Trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, its members, as a body, and its trustees, as a body for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
Pentland House
Saltire Centre
Glenrothes
Fife
KY6 2AH
Sumer Auditco Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 31 MARCH 2024
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
REGISTERED NUMBER: SC203106
BALANCE SHEET
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Childcare Connections Limited is a private company limited by guarantee incorporated in Scotland, governed by their Memorandum and Articles of Association. The charity's registered office is Valley Park Community Centre, 37 Southhouse Road, Edinburgh, EH17 8EU.
2.Accounting policies
The presentation currency of these financial statements is GBP, rounded to the nearest pound.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the company 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.
All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
The charitable company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charitable company to the fund in respect of the year.
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
6.Analysis of expenditure by activities (continued)
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
8.Staff costs (continued)
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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CHILDCARE CONNECTIONS LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable by the charitable company to the fund and amounted to £6,021 (2023 - £5,651). Contributions totaling £1,156 (2023 - £NIL) were payable to the fund at the balance sheet date.
The trustees are of the opinion that there were no related party transactions in the current or previous financial year.
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