The trustees present their annual report and financial statements for the year ended 31 August 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 club's articles and memorandum of association, the Companies Act 2006 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)” (as amended for accounting periods commencing from 1 January 2016).
The club's objectives are to provide good quality, affordable childcare both after school and during the school holidays. This is achieved by operating a Kids Club for children at First and Middle schools in the local area, in the age range 4 to 12 years old. The club operates from Broomley First School, Stocksfield.
Public benefit
The trustees have considered the guidance produced by the Charity Commission on the provision of public benefit and they confirm that public benefit has been provided by having aims that fall within the charitable purposes of the advancement of education.
It has been another extremely positive year for the club. The number of pupils utilising the club has continued to grow and we have retained a strong staff team who run the club extremely well.
We have continued to offer a varied and enriching programme of activities for children. Throughout the year, we have continued to offer all staff the opportunity to access further training for their own personal development and to enhance the provision we can offer to our users.
The club has continued to be a secure and happy environment for the children to start or end their school day. We continue to cater for the needs of all children, across the age range. The staff work hard to ensure that the resources and environment are appropriate for all, and activities are planned for and appeal to a wide variety of ages and interests. As ever the club’s facilities have been maintained and updated, both indoor and outdoor resources have been purchased to ensure that a wide variety of activities are available for all. The club’s committee voted in favour of donating £3,470 to the school’s fundraising efforts to purchase new outdoor play equipment for the school playground. Children attending the club have access to the equipment during the time they spend outdoors whilst attending the club, as well as this being of huge benefit to the first school’s outdoor play provision.
The club also provides places for children who have special needs. Staff work closely with school staff and parents, communicating regularly to ensure that the needs of all children are met. Staff continually adapt their practice to ensure positive outcomes for all.
The holiday care we provide has seen an increase in subscription this year from both Broomley First School that we primarily serve, and from other local schools. Staff continue to offer a wide variety of activities, such as sports, arts, crafts, celebrations and they welcome specialist activities and speakers into the club for themed days.
The trustees would like to thank all staff for providing such a welcoming and nurturing environment to all children and their families. It is an important service that benefits the school community and supports many families.
The club has reported net expenditure of £9,312 (2023 - net expenditure £1,063) and unrestricted funds of £28,491 (2023 - £37,803) are held at the year end, of which £25,000 represent designated funds.
2023/2024 saw the club’s numbers continue to increase. Updates were made to the club’s facilities, as well as updating resources in the club for children and organising activities and visitors during the school holidays. Overall, the finances of the club remain healthy with a reserve fund being held.
Reserves policy
It is the policy of the club 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 trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the club’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.
The trustees decided it would be appropriate to formally recognise the club's reserves policy and set aside 5 months expenditure, calculated at £25,000, as a designated fund.
Principal Risks
The trustees have assessed the major risks to which the club is exposed, and are satisfied that systems are in place to mitigate exposure.
At the start of every academic year and new intake, the team work hard with the children to develop their awareness of safety procedures, such as in the event of a fire or other emergency, and the necessity to observe the rules of not leaving the premises. We are very aware of all the principal risks and regularly audit against the regular Health & Safety assessments conducted.
Future developments
Given the government’s aspirations for the number of places for wrap-around care to be increased over the coming years, we have been in talks with Cheviot Learning Trust about the possibility of the club being transferred to Broomley First School. This would ensure that the club can offer more places to local families by utilising alternative spaces within the school building. The school are keen to take over the club so that they can tailor the wrap-around care to meet the needs of their families and their pupils. We have a close working relationship with the school and are discussing how such a transition could benefit our staff and the families the club serves.
The committee intend to continue to review prices due to the rise in the cost of living and the need to increase salaries, and how this would impact families if such a transfer should take place.
The trustees also aim to enhance the facilities of the club further, however any future spends would be dependent on the transfer of the club to Broomley First School.
The current account bank balance is currently circa £13.7k, and the club therefore remains financially stable.
The club is a company limited by guarantee. The governing document is the memorandum and articles of association and the operations of the club are overseen by the board of trustees who are also directors of the club and act on a voluntary basis. Having this structure in place allows wage costs to be minimised and therefore keep childcare affordable. The trustees meet regularly to review the financial performance of the club and resolve any operational issues.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
New trustees are actively encouraged from parents of children attending the club. At each Annual General Meeting one third of the trustees retire and can offer themselves for re-election. Our trustee induction procedures ensure familiarity with all of terms of reference, Job Descriptions, Volunteer Policy; ensuring DBS in place, and with procedures for reading and signing to confirm understanding and knowledge of all club policies and procedures, with any role specific training required in handover from Chair, Secretary or Treasurer roles being provided.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Day to day operation of the club is assigned to the club manager.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Mid Tyne Kids Club (the club) for the year ended 31 August 2024.
Having satisfied myself that the financial statements of the club are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the club’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the club as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
designated
Charitable activities - income
Investments
Charitable activities - expenditure
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
designated
Charitable activities - income
Investments
Charitable activities - expenditure
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Mid Tyne Kids Club is a private company limited by guarantee incorporated in England and Wales. The registered office is C/o Broomley First School, Main Road, Stocksfield, Northumberland, NE43 7NN.
The club is a public benefit entity.
The financial statements have been prepared in accordance with the club's governing document, the Companies Act 2006 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 club is a Public Benefit Entity as defined by FRS 102.
The club has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the club. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the club has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors 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.
Income is recognised when the club is legally entitled, after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Fee income, for childcare services, is recorded in the period to which it relates.
Expenditure is recorded on an accruals basis, inclusive of VAT.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Assets are capitalised where their cost is greater than £100.
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:
Cash and cash equivalents include cash in hand, deposits held at banks and any bank overdraft. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets, including debtors and cash and bank balances are measured at transaction price.
Basic financial liabilities, including creditors and bank loans are recognised at transaction price.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Fee income
Charitable activities - expenditure
Provision of services
None of the trustees (or any persons connected with them) received any remuneration or benefits from the club during the year. No expenses were paid to any of the trustees.
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The club operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the club 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.
Reserve fund: the trustees agreed to formally set up a designated fund to represent 5 months expenditure that may be required, should there be a significant drop in funding, which would enable the club to provide continuity of care, whilst the future options for the club were being investigated.
There were no disclosable related party transactions during the year (2023 - none).