The trustees present their annual report and financial statements for the year ended 31 August 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 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)” (as amended for accounting periods commencing from 1 January 2016)
The charity's object and its principal activity continues to be that of providing child care facilities in the Fakenham area. The organisation provides day care facilities for children up to 14 years of age including special facilities for six babies.
The main aims of the charity are;
To provide affordable, flexible and inclusive, good quality childcare and education for children that live in the Fakenham and District area.
To provide a service that meets the needs of our families and enables parents to leave their children feeling confident and reducing anxiety in their childcare arrangements.
To provide a curriculum in which the welfare, security and development of children is of primary importance. Encouraging all children to grow and develop at an individual pace, promoting an awareness of their self-worth and expanding their understanding of themselves and of others around them and to be a valued and valuable member of our Centre and our community.
To create an environment which feels like home and to provide an extended family environment.
To make provision, regarding the diverse needs of the community, embedding British Values. To actively consult parents, schools and outside agencies involved with any child in our care, ensuring that they meet their own unique potential. Recognising that each individual child has different needs relating to personal characteristics and pre-school experiences and that such needs require early identification, in order to build a programme of ongoing development through positive assessment.
Create a loving and secure environment, through cultural capital, where making choices, mistakes and trying things out are valued and celebrated. Where promoting independence of action and thought are encouraged, building children’s confidence in all activities and providing opportunities for play and talk through observing, imagining, experimenting, exploring, identifying, choosing and practising.
Praise and encourage good behaviour building self-esteem, fostering a caring attitude towards others and their property. Learning to value everyone regardless of gender, race, class or disability, ensuring that all children have equality of opportunity and access to a broad, balanced, relevant and different curriculum, within a safe, secure and stimulating environment.
Providing an environment where the process of learning is celebrated for children and adults alike. Students and children benefit from the experience and skills of more knowledgeable others who support them to achieve their goals.
To promote well-being and respect.
To equip our children with skills for learning, life and work, ready to actively grasp and follow their dreams in the future.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Fakenham Children's Daycare Centre continues to support families with outstanding care and education for children aged 0-7 years, including respite for a small number of children during the school holidays.
Transitions to schools and between rooms have been successful with professionals working together to meet the needs of individual children.
In September 2024, government funding came into force for working families with children aged 9-24 months. Fakenham Children's Daycare Centre remains full in all three rooms with a waiting list for babies until September 2027.
We retained our Environment Health award of full 5 stars, following a routine inspection in October 2024.
Members of the management team remain involved in consultation groups with professionals from a wider field to enhance and improve early years. Fakenham Children's Daycare Centre have been involved in the publication of a new ordinarily available provision toolkit to support practitioners and families with children's learning and development.
Fakenham Children's Centre continues to support students from both the local school and colleges. Students have been awarded a range of qualifications including two level III early year educators and one early years teacher.
Review of the financial position of the charity and reserves policy
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 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 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.
At the year end, the charity had total funds of £309,281 (2024 £253,561). The present reserves held is £220,190 (2024 £154,017) unrestricted reserves and £89,091 (2024 £99,544) restricted reserves. The free reserves held is £196,296 (2024 £133,062).
Risk Management
The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks faced by the charity and confirm that they have established systems to mitigate the significant risk.
We intend to continue to work with training bodies and local colleges to offer apprentices and long term college placements.
We hope to enhance our outside learning spaces to promote play and wellbeing.
We plan to maintain and decorate the outside of the centre with new doors to enhance security.
The charity is constituted as a company limited by guarantee, and is therefore governed by a memorandum and articles of association.
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 invited and encouraged to attend a series of short training sessions to familiarise themselves with the charity and the context within which it operates. These training sessions cover -
The obligations of Management Committee members.
The main documents which set out the operational framework for the charity including the Memorandum and Articles.
Resourcing and the current financial position as set out in the latest published accounts.
Future plans and objectives.
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.
The charity is organised so that the trustees meet regularly to manage its affairs. The trustees delegate the day to day responsibility to a centre manager.
The remaining staff employed at the centre provide a pre school breakfast club, care for young children during the day and after school facilities until 6.00 pm in the evening.
The trustees report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Fakenham Children's Daycare Centre Limited (the charity) for the year ended 31 August 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
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 charity as required by section 386 of the Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Fakenham Children's Daycare Centre Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Highfield Lawn, Field Lane, Fakenham, Norfolk, NR21 9QR.
The financial statements have been prepared in accordance with the charity'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)” (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 trustees have a reasonable expectation that the charity 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.
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.
Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that result in the payment being unavoidable.
Costs of generating funds are those costs incurred in trading activities that raise funds.
Charitable activities are those costs incurred by the charity in meeting its charitable objectives.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with the constitutional and statutory requirements.
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.
Donations and grants
Grants
Nursery fees & funding
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 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 Daycare Centre's main building, address Highfield Lawn, Field Lane, Fakenham, Norfolk NR21 9QR has been funded with money which means the building can only be used for the purpose of providing day care services to children under the age of 14. The building can not be sold on for any other purpose. Depreciation and property improvements will be the only movements against the restricted funds value in relation to this building.
The playgroup equipment consists of tables and chairs which were funded by a grant received from North Norfolk District Council in January 2017 to improve facilities at the playgroup.
Tesco's donated £2,000 for fencing panels to be constructed around the premises.
The parents donated £200 for a water tower to improve the facilities at the playgroup.
The wooden gazebo was purchased using a £500 donation and £250 from fundraising, the gazebo was purchased to replace the princess tower.
The apprenticeship funding was received from the College of West Anglia to be used towards the costs of employing apprentices.
Tesco's donated £269 for a new fridge.
Norfolk County Council £8,000 Sustainability Grant, to contribute towards the costs of equipment and operational costs.
Norfolk County Council £4,030 grant to fund the kitchen expansion.
Anglia Maltings donated £1,100 for a new fence.
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 (2024 - none).