MID_TYNE_KIDS_CLUB - Accounts

The trustees present their annual report and financial statements for the year ended 31 August 2022.

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. 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.

The last year has been extremely positive for the club, having seen a greater return to normalcy following recent Covid years. Numbers of pupils utilising the club have grown and further staff have been recruited to support the increase.

The club continues to be a secure and happy environment for all the children across the age range, and with specific areas designed for both the younger intake and the older children, to create bespoke environments to cater for the specific needs of our age range. The facilities of the club have been enhanced over the past year with a wide range of activities and opportunities, both indoor and outdoor, being offered to the children.

The club also provides places for children who have special needs and liaison with school staff and parents ensures continuity of special care.

The holiday schemes have been well subscribed and the activities offered include outdoor activities, cultural festivals, a wide range of art and craft, as well as sports.

The trustees cannot thank the staff enough for their unfaltering dedication and flexible and agile approach to working. It continues to be the staff who make the Club such an incredible resource to the parents and pupils who use it. Feedback following a survey to all parents within the club indicates their ongoing satisfaction with the level of service and care provided and their appreciation of the existence of this facility.

The club has reported net income of £2,173 (2021 - net deficit £4,922) and unrestricted funds of £38,866 (2021 - £36,693) are held at the year end, of which £30,000 represent designated funds.

2021/​2022 saw the club return to normal running after the pandemic. Significant spend was made on refurbishments as well as running activities during the school holidays. Overall, the finances of the club remain healthy with strong reserves.

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 6 months expenditure, calculated at £30,000, 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

The committee intend to continue to review prices due to the rise in the cost of living and the need to increase salaries.

The trustees also aim to enhance the facilities of the club further.

The current account bank balance is currently circa £8.1k, with an additional £30.7k in the deposit account, and the club therefore remains financially strong. If a further wave of COVID-19 were to hit, the Committee would have to review the different staffing options available to them at that time.

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 2022.

As the trustees of the club (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

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

Charitable activities - expenditure

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

Charitable activities - expenditure

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 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.

Grant Income

Charitable activities - income

Operating a Kids Club

Operating a Kids Club

Fee income

Charitable activities - expenditure

Provision of services

Operating costs

Repairs and maintenance

Admin costs

Other staff costs

Accountancy and independent examination fees

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 Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Reserve fund: the trustees agreed to formally set up a designated fund to represent 6 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 (2021 - none).