MATILDA COMMUNITY DAY NURSERY

OBJECTIVES AND ACTIVITIES

Objectives and Aims

The object for which the Company is established, as stated in the Memorandum and Articles of Association, is to promote, develop and provide facilities for the daily care, recreation and education of children under the age of five, resident in the London Borough of Tower Hamlets with particular regard to children resident in Matilda House, St Katherine's Way, London. The main objective for the year was the operation and management of a community day nursery.

Significant Activities

Matilda Nursery continues to deliver high-quality early years education and care, supporting the developmental needs of pre-school children in alignment with the Early Years Foundation Stage (EYFS) framework. Our provision ensures that each child receives the best possible start to their educational journey and is well prepared for a successful transition to primary school. The nursery continues to participate in government-funded childcare schemes, including funded places for 1-year-olds, 2-year-olds, and the universal and extended entitlement for 3- and 4-year-olds. Our most recent Ofsted inspection reaffirmed a “Good” rating, and the nursery has implemented a range of strategic measures aimed at achieving an “Outstanding” outcome in the next inspection cycle. During the year, the nursery expanded its educational offering by introducing a series of enrichment trips designed to enhance experiential learning beyond the classroom. Children benefited from engaging and educational visits, including a trip to the Tower Bridge walkway, a ride on the London cable cars, and outdoor learning experiences such as group picnics. Community engagement remained a key priority. Matilda Nursery successfully hosted its annual Summer Fair, which provided valuable opportunities for families, staff, and members of the local community to come together in celebration of diversity and shared values. In the 2024–2025 financial year, the nursery welcomed 20 new families into the Matilda community and celebrated the graduation of 15 children, marking their transition to primary education.

Public Benefit

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PD2)'. The achievements and activities above demonstrate the public benefit arising through the Charity's activities.

FINANCIAL REVIEW

Financial Position

During the year the Charity's income amounted to £231,736 (2024: £230,494) with a surplus of £5,593 (2024: £42,060). The financial position at the year-end revealed by the Balance Sheet on page 6 show net assets of £90,037 (2024: £84,444). The net book value of fixed assets held at the year-end, all of which are used directly for charitable purposes, amounted to £210 (2024: £420).

Principal Funding Sources

The principal funding source is parental fee income, supplemented by donations, government funding and fundraising activities.

Investment Policy and Objectives

Under the Memorandum and Articles of Association, the charity has the power to make any investment which the trustees see fit. The entity has a substantial accumulation of cash presently invested by being placed on deposit with an approximate rate of return of 0.04% per annum. This is below the current rate of inflation in the UK.

Reserves Policy

The Trustees consider it prudent to maintain an adequate balance of unrestricted funds to cover the Charity's contractual commitments and ideally would like these to be at a minimum level of between 3 months and 6 months of annual expenditure. As of 31st March 2025, accounts showed reserves of £90,037 (2024: £84,444), of which £10,833 (2024: £10,833) was restricted and £79,204 (2024: £73,611) was unrestricted. The unrestricted funds not designated or invested in tangible fixed assets held by the charity were £79,204 (2024: £73,611). The Trustees consider that the Charity's reserves will enhance the services provided and provide financial security for the future.

FUTURE PLANS

The nursery remains committed to providing high-quality care and education for pre-school children within a nurturing and stimulating environment. Looking ahead, our key focus will be to maintain and further increase the nursery’s occupancy rate. We are planning to refurbish the external storage shed, and progress towards this improvement is very positive. This enhancement will not only improve the overall appearance of the setting but also help to create a more welcoming and organised environment for families visiting the nursery. Our aim for the upcoming 2026/2027 academic year is to achieve and sustain full occupancy. We also plan to continue offering enriching trips and outings to support children’s learning and development beyond the nursery environment, helping them gain valuable experiences and build confidence in the wider community.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Matilda Community Day Nursery ('the Company') is registered as a company limited by guarantee and does not have any share capital. Its operations are governed by its Memorandum and Articles of Association (M&AA) dated 31st January 1994. The company was incorporated on 31st January 1994 and registered as a charity on 31st March 1994. The charity registration number is 1035872 and the company registration number is 02893215.

Recruitment and Appointment of Directors/Trustees

The Directors of the company are also charity Trustees for the purposes of charity law. Under the company's Articles of Association, the business of the company is managed by the Management Committee, which includes at least one Director. The number of members of the Management Committee shall not be less than three nor more than nine. The Management Committee shall be constituted as up to seven members elected from among the members of the company annually at the Annual General Meeting and two persons (who need not be members of the company) co-opted, and with full voting rights. All members of the Management Committee shall retire annually at each Annual General Meeting, but shall be eligible for re-appointment. No paid employee is eligible to serve as a member of the Management Committee.

Organisation

The day-to-day running of the organisation is overseen by the Nursery Manager who reports to the Directors/Trustees, who are responsible for determining all of the company's policies and ensuring that committee meetings are held every six to eight weeks.

Induction and Training of New Trustees

New Directors/Trustees are initially provided with copies of the Memorandum and Articles of Association, together with the most recent Annual Trustees' Report. All Directors/Trustees continue to maintain a good working knowledge of Charity and Company Law and Best Practice by studying Charity Commission newsletters. The Management Committee will recruit further Directors/Trustees as required for the ongoing successful operations of the organisation.

Key Management Remuneration

The Management Committee will, if appropriate, review the remuneration in respect of senior staff, prior to the finalisation of the Nursery income and expenditure budget for the forthcoming financial year.

Charitable and Political Donations

During the year, the company made no charitable or political donations.

Related Parties

The company does not have relationships with related parties and other charities and organisations with which it co-operates in pursuit of its charitable objectives.

Risk Management

The Directors/Trustees have overall responsibility for ensuring that the Company has appropriate systems of financial controls for the organisation. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements follow best practice. They are also responsible for safeguarding the assets of the company and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. Internal control processes include: 1. All suppliers' invoices are required to be authorised for payment by the Nursery Manager. 2. All parental fees are recorded on a week-by-week basis and regular monitoring of fee balances is maintained in order to avoid the accrual of arrears. Any parental arrears that may have become manifest and not satisfactorily resolved initially by the Nursery Manager will be reported to the Directors/Trustees, in order for appropriate action to be taken as may be deemed necessary. 3. Annual reviews are undertaken and any additional procedures that may have become necessary are implemented.

Independent Examiner’s Report to the Trustees of Matilda Community Day Nursery

I report to the Charity Trustees on my examination of the accounts of the charity for the year ended 31 March 2025 which consists of the statement of financial activities, balance sheet and the related notes.

Responsibilities and Basis of Report

As the charity’s trustees (and also its directors for the purposes of company law) 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').

Having satisfied myself that the accounts 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent Examiner's Statement

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 and Section 386 of the 2006 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 and 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 accounts 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 accounts to be reached.

1. Accounting Policies

12.1 Details of material funds held and movements during the CURRENT reporting period

12.2 Details of material funds held and movements during the PREVIOUS reporting period

15. Analysis of Net Assets Between Funds

16. Share Capital