The Executive Committee present their annual report and financial statements for the year ended 31 March 2025.
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 memorandum and articles of association, 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 charity receives funding from the City of Edinburgh Council in respect of improving employability. This funding is to provide subsidised childcare in Southwest Edinburgh. Interim reports are submitted on a quarterly basis to account for the use of those funds.
The main objective of the charity is to provide affordable, dependable, accessible and high-quality childcare to families on low incomes or accessing further education and living in Southwest Edinburgh. The strategy to achieve that objective is to provide year-round full day childcare for children ages from birth to 12 years.
All employees working for the charity are registered with the PVG scheme (protective vulnerable groups) regardless of whether they work directly with children or not.
Funding of the charity is based on Smilechildcare’s mission statement values and vision.
Smilechildcare provides high quality, inclusive, affordable childcare for children aged 0 – 12 years in safe and nurturing environments, meeting the needs of each child and supporting their families whilst working in partnership with other agencies, enabling families on low income or accessing further education to secure and sustain long term employment helping to break the cycle of child poverty and deprivation.
Our values are based on the views of our staff, children and families who believe this to be the important building blocks needed to develop a thriving community childcare organisation which recognises each child as a unique individual.
Creating a sense of enjoyment through positive experiences.
We value creativity and allow individuals to flourish and grow.
Placing the child at the centre of the learning process in which they are active participants making their own choices.
To listen and have open, honest relationships, enabling understanding and shared knowledge between staff, professionals, children and families.
We respect children, families and staff valuing their knowledge, skills and experience that they all bring as individuals.
High quality workforce with strong pedagogy practice and leadership.
Our vision is to work collaboratively promoting the rights of each child in safe, nurturing, diverse and inclusive surroundings, enabling all children to be resilient and reach their full potential whilst valuing their learning through play in a broad range of environments. Smilechildcare hope that children and families reflect on their time with us and remember it as a happy and memorable stage of their lives.
Staff Training:
Quality standards are met by an on-going programme of staff training and by adherence to Care Inspectorate/Education Scotland Quality Standards. All centres are inspected by the Care Inspectorate for Scotland. The early learning and childcare centre is also inspected by Education Scotland. The charity follows government legislation and frameworks.
All staff at the charity are suitably qualified for the post they hold and are registered with SSSC. To maintain high quality standards in all areas of operation staff development continues to be essential, Smilechildcare offer a variety of training including in-house, online and attending colleges so that staff have access to different forms of ongoing continued professional development.
Improving health:
Providing children with high quality, well balanced nutritious meals and snacks, providing information on these topics through our newsletter, website and other items posted on the parent’s information boards in each centre. All our centres ensure that children have a programme which includes good physical exercise and outdoor activities suitable for their age group. Smilechildcare works with specialist services to support children with additional needs and provide resources to meet those needs.
Employability:
Smilechildcare works in partnership with employability services and educational bodies to enable individuals to use our centres for volunteering, college, university, work experience placements and traineeships. This allows people to progress from “not job ready” to “job ready” enabling them to reach positive destinations and sustain long term employability.
Supporting parents to achieve their goals in terms of work and training, encouraging parents to be involved with their children’s childcare with some parent users acting as company directors. Regular newsletters keeping families informed about company developments. To co-operate and work with statutory and to promote the development of a multi-agency resource for children and families within the operating area.
The Executive Committee have paid due regard to guidance issued by the OSCR in deciding what activities the charity should undertake.
During the financial year 2024-25, the charity continued to provide subsidised childcare to families seeking employment or further education.
The demand for the Out of School and Holiday Placement service is lower than last year, This is due to parents changing their working patterns, hybrid working and the continuing rising costs of inflation. The demand for the under 5’s settings is also decreasing and in particular the demand for childcare for children under the age of 3 years, this is due to rising costs due to cuts in funding. We continue to deliver 1140 hours for 3–5-year-olds and eligible 2-year-olds in partnership with City of Edinburgh Council.
Smilechildcare pride ourselves on continuing to offer high quality, free flow child-centred approach childcare where children have the opportunity to follow their interests and develop at their own pace.
Along with the rest of the childcare sector smilechildcare have faced challenges with recruiting and retaining staff, this is due to the 1140 hours being rolled out in all local authority settings, current staff are applying for vacancies within these settings as the local authority are able to offer higher salaries and flexible working hours.
The Executive Committee have examined the requirements for unrestricted funds and considered there for be adequate resources to allow the charity to maintain its operational capacity for the foreseeable future, given the circumstances in which the charity operates. The Executive Committee has also considered areas in which expenditure can be reduced/income increased in the year and on this basis, considers it appropriate to prepare the accounts on an ongoing basis.
In 2024-25 the principal funder of the charity was the City of Edinburgh Council, which provided grants totalling £241,129 which was for core funding. Other funds are generated from parental fees and contracts with external clients located in and around Edinburgh and the Lothians.
Restricted funds had a surplus for the year of £nil (2024 – £nil).
Overall there was a deficit of £27,862 (2024 - deficit of £7,059). The deficit has arisen this year due to the significant increase in wage costs due to the rise in the national living wage.
Reserves Policy
It is the target of the Executive Chairman to retain in unrestricted funds a sum equivalent to at least 6 months of salary cost and other relevant expenditure.
Plans for Future Periods
Funding received for Capital City Partnership is reducing each year until Aug 2027 when the funding is due to end.
Priorities in the coming year can be summarised as follows:
To continue to develop staff allowing them to be current, highly trained and champions in childcare areas.
To develop indoor/outdoor environments to allow more opportunities for play and learning.
To implement national induction resource, supporting the delivery of the 1140 hours.
Continue to develop reporting and analysis systems to ensure accurate strategic decisions are made.
Secure the premises for delivery of services allowing children to be active participants making their own choices.
Work collaboratively to meet the needs of all service users.
The charity is a charitable company limited by guarantee and was incorporated on 4 November 1998.
The charity was established under Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those Articles, the members of the Executive Committee are elected at the annual general meeting (‘AGM’) to serve the period of three years subject to ratification at each AGM.
The Executive Committee of the charity meets approximately four times a year.
The Executive Committee, 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:
Recruitment and Appointment of the Executive Committee
New members of the Executive Committee are appointed either at the AGM by a membership vote or by co-option during the course of the year. Parent members are encouraged to join the Executive Committee.
New members of the Executive Committee are appointed following an interview/meeting with the chair and/or the Company Secretary, attendance at an Executive Committee meeting in an observer capacity and a visit to provide a brief CV and evidence of their experience or interest in working with a childcare charity. No one external to the charity is entitled to appoint an Executive Committee member.
The Executive Committee is responsible collectively for the overall decision making of the charity but do not have any involvement with the day to day running of the charity. New trustees receive a new member pack of information, including roles and responsibilities. The Executive Committee have paid due regard to guidance issued by the OSCR in deciding what activities the charity should undertake.
Executive Committee Induction and Training
New Executive members undergo an orientation day to brief them on; their legal obligations under the charity and company law, the Scottish Charity regulator’s guidance on Executive Committee member duties , and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction day they meet key employees and other Executive members. Executive Members are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
Risk management
The Executive Committee, in conjunction with the general manager, actively review the major risks that the charity faces and are satisfied that procedures are in place which provide reasonable, but no absolute assurance, against materials misstatement or loss. The charity follows mandatory legislation and guidelines from the Care Commission, Health & Safety Executive, the Scottish Social Services Council and the City of Edinburgh Council. There were no adverse issues emerging in the course of the year.
The Executive Committee, who are also the directors of Smilechildcare for the purpose of company law, are responsible for preparing the Executive Committees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.
The Executive Committees' report was approved by the Board of Executive Committee.
Opinion
We have audited the financial statements of Smilechildcare (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 Executive Committees' 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 charity’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 Executive Committee with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Executive Committee are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the Executive Committees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of Executive Committees' responsibilities, the Executive Committee, who are also the directors of the charity for the purpose 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 Executive Committee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Executive Committee are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Executive Committee either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under section 144 of the Charities Act 2011 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 auditor's 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 considered the opportunities and incentives that may exist within the charity for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, management override through posting of unusual journals along with any complex transactions and complying with laws and regulations. We discussed the risk with management, designed audit procedures to test the timing and existence of income, reviewed areas of judgement for indicators of management bias and held discussions with management regarding compliance with laws and regulations to address these risks.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).
We reviewed the laws and regulations in areas that directly affect the financial statements including applicable charity and company law and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the charity.
We communicated identified laws and regulations and potential fraud risks throughout our team and remained alert to any indications of non-compliance or fraud throughout the audit. However the primary responsibility for the prevention and detection of fraud rests with the trustees.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Thomson Cooper is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Investments
Raising funds
Interest costs
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.
Interest costs
Smilechildcare is a private company limited by guarantee incorporated in Scotland. The registered office is 17 Calder Grove, Edinburgh, EH11 4LZ.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity 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 charity. 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 charity has secured core funding until 31 March 2027. However the exact level of funding has not yet been confirmed and the funder has advised that they do not expect the funding to continue beyond July 2027.
The trustees and management have already taken steps to reduce operational costs and may need to reduce costs further once the level of cuts to funding is known. The charity is dependent on receiving an appropriate level of funding and fee income to enable services to continue. Based on current forecasts, with reliance on unrestricted reserves and the measures implemented, the trustees believe that the charity has sufficient resources to meet its obligations as they fall due for at least 12 months from the date of approval of these financial statements. Accordingly, the trustees consider that it is appropriate to prepare the financial statements on a going concern basis.
Unrestricted funds are available for use at the discretion of the Executive Committee 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.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Fee Income is credited to the SOFA at the point the invoice for the related childcare service is raised by the charity.
Grants received of a revenue nature are credited to the revenue account in the year in which the charity is entitled to the grant.
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.
Expenditure is recognised on an accrual basis as liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the charity of the delivery of its activities and services for its beneficiaries. It includes costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. These costs include the statutory audit and legal and professional fees.
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.
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.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
The charity participates a multi-employer defined benefit scheme. In accordance with FRS 102 the costs are accounted for as if it was a defined benefit contribution scheme as the charity's share of assets and liabilities in the fund cannot be separately identified. Accordingly the pension charge in the Statement of Financial Activities represents the amounts committed by the charity to the fund.
Fee income
Grant income
Fee income
Grant income
Income from charitable activities
IT software and consumables
Toys and materials
Trips and outings
Food and housekeeping
Allocation on time
As incurred
Printing and stationary
As incurred
Staff training
As incurred
Rent, rates and water
Usage
Repairs & maintenance
As incurred
Insurance
As incurred
Motor vehicle costs
Usage
Telephone, light and heat
Usage
Cleaning/travel/subscriptions/sundry
As incurred
Depreciation
Allocation on time
As incurred
Printing and stationary
As incurred
Staff training
As incurred
Rent, rates and water
Usage
Repairs & maintenance
As incurred
Insurance
As incurred
Motor vehicle costs
Usage
Other professional fees
As incurred
Telephone, light and heat
Usage
Cleaning/travel/subscriptions/sundry
As incurred
Depreciation
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.
Assets with a carrying value of £4,748 (2024 - £5,652) have been pledged to secure borrowings of the charity. The charity is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
The charity was granted a bond and floating charge over all of the charity's assets, for all sums due, or to become due, in favour of The Royal Bank of Scotland Plc. The charge was satisified on 25 August 2025.
Pension Disclosure
The company participates in the scheme, a multi-employer scheme which provides benefits to some 77 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2023. This actuarial valuation was certified on 27 June 2024 and showed assets of £86.2m, liabilities of £88.2m and a deficit of £2.0m. From 1 June 2024 the majority of employers no longer pay deficit contributions. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:
Deficit contributions
From 1 April 2022 to 31 May 2025: |
£1,473,969 per annum (payable monthly and increasing by 3% each year on 1st April) |
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
The following schedule details the deficit contributions agreed between the company and the scheme at each year end period:
Deficit contributions schedule
Year ending | 31 March 2025 (£s) | 31 March 2024 (£s) | 31 March 2023 (£s) |
Year 1 | 28,766 | 27,929 | 27,115 |
Year 2 | 29,629 | 28,766 | 27,929 |
Year 3 | 22,889 | 29,629 | 28,766 |
Year 4 | - | 22,889 | 29,629 |
Year 5 | - | - | 22,889 |
A liability measured at present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises must be recognised. It is these contributions that have been used to derive the balance sheet liability.
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 restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
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.
The company has no share capital as it is a company limited by guarantee.
During the year the charity entered into the following transactions with related parties:
£698 (2024 - £750) was paid to Jacquie McCulloch's husband for repair services. Jacquie is the general manager of the nursery and part of the key management personnel of the charity.
There were no further transactions with related parties as required to be disclosed under FRS 102 and no trustees received any remuneration from the charity.