The tustees present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "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 needs of the club are to promote the education of children in need of care during out of school hours and school holidays. To provide or assist in the provision of facilities for the recreation or other leisure time occupation of such children in the interest of social welfare, with the object of improving their conditions of life.
We will achieve these aims in the following way:
We will always promote policies and procedures by following the guidelines, copies will be available for parents/carers to view online on our website and hard copies will be available in the centre.
Policies will be reviewed regularly to ensure that they meet the current legislation.
The club will employ competent and confident staff that have been appropriately vetted.
We will ask for two appropriate references and an enhanced Disclosure/PVG check will be completed before a post is offered. We encourage lifelong learning and support all members of staff to reach their next level of qualifications (cross reference to SSSC code for employers) and be registered with the SSSC within six months of commencing employment and staff will follow SSSC code of practice.
The club will provide a balanced range of activities, considering the ages, cultural, development needs, interests, and hours and pattern of attendance of each child and young person.
The club is run by competent childcare workers and by experienced qualified managers who run a stimulating and safe service.
The club will operate a self-evaluation scheme as a means of ensuring continuous improvement and will involve all staff and users in the process. We will do this by ensuring staff have regular appraisals and that everyone at the club; children, parents/carers and workers are involved in ensuring “the child is the centre”.
We will engage with parents/carers in a friendly manner making conversation about things at the club.
The club will be transparent in all its activities.
The club will take account of local and national guidance in its activities.
We will always promote positive behavior.
The tustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The Club currently has 139 families registered to use the Club, amounting to 173 children in total. Typically, the Club cares for 52-80 children during the breakfast session and 45-80 during the afterschool sessions. During in-service days and holidays the Club typically cares for 35-50 children.
The trustees, together with the staff continue to look for ways of making the Club a safe, enriching, and fun place for the children to be, whilst considering the registration requirements of the Care Inspectorate. The Club continues to promote wellbeing through physical activities, sports, and healthy diet.
The staff are an integral part of the Club. Their commitment and enthusiasm in looking after the children requires to be mentioned and recognised. Within the local community in which the Club serves families are extremely thankful for the work the Club offers.
The Club is fortunate to have several young people on the staff who help care for the children, allowing them to develop their skills and life experiences whilst developing a friendly rapport with the Club.
Work is ongoing to increase the number of Directors and identify any knowledge gaps to ensure the board has the necessary skills to support the development and sustainability of the charity into the future as it meets the many challenges and opportunities ahead.
Charitable activities
In pursuance of its objective, the Charity runs the Newtonhill out of School Club at the Betteridge Centre, Newtonhill, Aberdeenshire. This operates before and after school and during the school holidays for children ages 4 to 14 years old living in the local area (16 years old for additional needs children).
Care Inspectorate Grading and Inspection
The Club received an unannounced inspection from the Care Inspectorate on 11th and 12th May 2023, in which the Club received a “Good” grading.
Policies and Procedures
Policies and Procedures are reviewed, amended, and approved by the trustees, these were updated June 2023 and will be reviewed annually thereafter. They are available for review by any parent or carer whose children attend the Club both in paper format held within the Club and on the Clubs website.
Principle funding sources
Most of the Clubs income comes from session fees of the parent and carers based on Club attendance. The Club is a member only club whereby families pay an annual membership fee of £30. The income from membership is minimal and equates to only 2% of total income.
The Club continues to claim Gift Aid in respect of the annual membership fees paid by parents and carers. Additional income is generated through fund raising with various events held throughout the year.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The tustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Unrestricted funds are split between General, Equipment and Redundancy. Note 18 in the Notes to the Financial Statements shows the current split of these funds.
The Club has several long-standing members of staff, and the Trustees consider it prudent to set aside funds required in the event if the Club closing and having an obligation to pay redundancy costs.
Historically the membership fee was established to fund the purchase of new equipment. The trustees wish to maintain this reserve.
As the session fees are invoiced fortnightly in arrears, the trustees consider it responsible to operate an overall reserve equivalent of 3 months operating costs; this currently equates to £45,115. The current general reserve (excluding redundancy) is more than the target; and the Club will work to retain this level of reserves over the coming years.
The charity is controlled by its governing document, a Memorandum and Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 1985.
The tustees, 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:
All the Clubs trustees are appointed or reappointed by the members at the AGM, which was held in January 2024. All parents and carers whose children attend the Club are invited to attend the AGM where they are given an update on the Clubs activities during the year. All time and service given in support of the management of the Club is given on a wholly voluntary basis.
The trustees meet every six to eight weeks during school term time to oversee the work of the charity. Day to day running of the Club is delegated to the Club Manager.
There has been a significant change to the trustees during the year. All trustees are already familiar with the practical work of the charity having children who attend the Club. Additionally, new trustees are invited to attend a board meeting before committing themselves to a role in the charity’s management committee. Trustees are also issues with a copy of the OSCR’s guidance on the duties of the charity trustees under the Charities and Trustee Investment (Scotland) Act 2005.
All the trustees have children who attend the Club. They pay membership and session fees on the same basis as all other parents and carers who use the Club’s facilities. Trustees do not receive any form of compensation for fulfilling the role, this is wholly voluntary position.
The trustees' report was approved by the Board of Tustees.
I report on the financial statements of the charity for the year ended 31 March 2024, which are set out on pages 6 to 17.
The charity’s tustees, who are also the directors of Newtonhill Out Of School Club for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The tustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Newtonhill Out Of School Club is a private company limited by guarantee incorporated in Scotland. The registered office is Bettridge Centre, Coastal Park, AB39 3UL.
The financial statements have been prepared in accordance with the charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), 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 tustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the tustees 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 tustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors 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.
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 tustees 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.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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 unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none).
The charity had no material debt during the year.