charity number: 1120124 1st place children and parents ... · independent auditors' report ......

Company number: 05424738

Charity number: 1120124

1st Place Children and

Parents’ Centre Ltd.

Report and financial statements

For the year ended 31 March 2016

1st Place Children and Parents’ Centre Ltd.

Contents


Reference and administrative details .............................................................................................. 1

Chair of Trustees’ report ................................................................................................................ 2

Trustees’ annual report .................................................................................................................. 3

Independent auditors' report ........................................................................................................ 15

Statement of financial activities (incorporating an income and expenditure account) ................... 17

Balance sheet ............................................................................................................................... 18

Statement of cash flows ............................................................................................................... 19

Notes to the financial statements ................................................................................................. 20


Reference and administrative details


1

Company number 05424738

Charity number 1120124

Registered office 12 Chumleigh Street

and operational LONDON

address SE5 0RN

Trustees Trustees, who are also directors under company law, who served during the

year and up to the date of this report were as follows:

Mark Devlin Chair

Philip Wilkins Treasurer

Douglas Buist

Mary Devlin

Beatriz Dominguez Resigned November 2015

Claire Walker

Karlene Watson

Cheryl Parkinson

Harriet Mubiana Appointed November 2014

Lucy Brazener Appointed November 2014

Karen Stocks Resigned September 2015

Nigel Lloyd Appointed February 2015

Lucia Adams Appointed November 2015

Amanda Leat Appointed November 2015

Ana Brito Appointed November 2015

Sarah McCarthy Appointed November 2015

Nicola Howard Appointed February 2016

Principal staff Nicola Howard Director and Company Secretary

Bankers Barclays

1-3 Butterfly Walk

Camberwell

London SE5 8RW

Auditors Sayer Vincent LLP

Chartered Accountants and Statutory Auditors

Invicta House, 108-114 Golden Lane

LONDON

EC1Y 0TL


Trustees’ annual report


2

As ever 2015/16 was an eventful year for 1st Place. It marked our tenth anniversary and a

highlight of the year was to celebrate it with our staff and families including some of our first

nursery children, who are now starting secondary school. As planned, we also opened our third

nursery at Lorrimore Square and we are grateful for the partnership and support from the Diocese

of Southwark and the Council. The investment in the new nursery was always going to take some

time to recover its costs and our financial performance in the year reflects these start-up costs

and as anticipated a lag time on recovery. Our carefully managed financial reserves from the

previous two years support this position.

The external context has continued to present challenges. Not least staff recruitment, which

across the early education sector as a whole is an area of concern. I want to pay tribute to the

fantastic staff who work in 1st Place and their daily dedication to the children and families with

whom we work. It is their outstanding commitment that creates the special culture and caring

atmosphere, which is our hallmark.

Along with significant changes we continue to improve and develop our day to day service. Each

nursery now has studio space to allow children to explore and be creative, which is a key

component of our approach to early education. Family support is an essential element of our

children’s centre role. Provision of parent training courses and holiday schemes continue to be

popular offerings.

We successfully concluded discussions with Southwark Council and partners Coin St. regarding

leadership of children centre services across the Borough Bankside and Walworth Locality and

assumed this responsibility in 2016.

At the time of writing all three nurseries have been reviewed by Ofsted and I am delighted to

report that we have achieved, an Outstanding rating for Cambridge House and Good ratings for

both Chumleigh Gardens and Lorrimore Square. Again testament to the hard work and high

standards of our staff.

I’d like to thank the Board of Trustees and senior management for their support during the year.

Their active engagement in the work of the Board and its subcommittees makes an essential

difference to the direction and success of 1st Place. Most importantly I’d like to thank our parents

and families for working with us to create such a special environment for our children at the heart

of the community.

Mark Devlin

Chair, Board of Trustees




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The Trustees (who act as directors of the Charity for the purposes of the Companies Act) submit

their annual report and the financial statements of 1st Place Children and Parents' Centre for the

year ended 31 March 2016.

The Board of Trustees confirm that the annual report and financial statements of the Charity

comply with current statutory requirements, the requirements of the Charity's governing document

and the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting

by Charities (revised 2005)'.

Structure, governance and management

1st Place Children and Parents’ Centre is a registered charity and company limited by guarantee

with no share capital. The liability of Trustees in the event of insolvent liquidation is limited to

£1.00 each. The members of the Board of Trustees are appointed by the membership at the

Annual General Meeting or co-opted between meetings. Day to day management of the Charity is

delegated to the Director who is responsible for other staff. The board of Trustees meet regularly,

with four sub-committees, Early Education, Finance & General Purposes, Human Resources, and

Safeguarding, overseeing the operational activities of the organisation. The Full Board meets

quarterly to approve the business undertaken in the sub-committees. Additional working groups

convene as and when required. Trustees are given appropriate induction, upon appointment, and

ongoing training as required in order to assist them in fulfilling their role.

Objectives and activities

1st Place is a purpose-built Children and Parents’ Centre. It achieved charitable status in 2007 and

has worked with the following aims:

1st Place shall be for the benefit of the residents in the London Borough of Southwark in particular

families with young children, by:

1 Advancing the education of the residents through the provision of training and childcare

facilities;

2 The provision of advice, support and guidance on issues relating to childcare, parenting and

education, health and the environment;

3 The provision and maintenance of a family centre;

4 Encouraging the study of the needs of children and families in the (local area) and promoting

public interest in and recognition of these needs; and

5 The promotion of environmental education and awareness.




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How we work to achieve these objectives

In order to achieve these objectives, 1st Place provides-

● Innovative, high quality early learning experiences for young children;

● Training, volunteering and employment opportunities for local parents and other residents;

and

● Support for the regeneration of the local community in order to contribute to long-term

social and economic stability.

1st Place Children and Parents’ Centre also aims to nurture a community culture that celebrates

our diversity; a culture that models respect and support for young children and families as well as

caring for the environment. 1st Place aims to support the ongoing growth and development of

individuals and groups within the local community.

Our Aims

Since our inception in 2005, 1st Place’s aims have focused on the locally identified needs of

children and families. 1st Place objectives also support Southwark Childrens’ & Adult’s services to

deliver our services and support within the Families Matter agenda and the achievement of the

corporate priorities for Southwark Children’s and Families Trust Children & Young People’s Plan.

These priorities are:

Our Partners during 2015-16

● British School of Osteopathy

● Bede House

● Homestart Southwark

● Represent

● Place2Be

● KIDS

● Learning Unlimited

● GSTT Speech & Language Therapy

● Creation Trust

● Unicorn Theatre

● Community Southwark

● Cambridge House

● Centric Learning Tree

● Evelina Children’ Trust Health Visitors

● GSTT Midwifery

● South London & Maudesley CAMHS Adult Service

● St Pauls Church Lorrimore Square

● The Tavistock Centre for Couple Relationships

● Coin Street

Achievements and performance

1st Place celebrated its 10th year in November 2015, and marked the occasion by bringing

together parents and staff who were instrumental in our inception and early development. We were

also lucky to be joined by some of the first children who attended our nursery, many of which who

started secondary school in 2016. It was wonderful to hearing memories of their early learning and

relationships with their educators during their time at 1st Place.




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We have further developed our networks with early education providers across the world, with two

visits from colleagues from Tokyo and Copenhagen. Through our links with University of

Greenwich, students visited us for a second time from Balimory University in Kentucky and from

Malaysia.

Our partnership with Southwark Council and The Diocese of Southwark at St Pauls Lorrimore

Square came to fruition in November 2015, when our third nursery 1st Place at Lorrimore Square

opened its doors to new children and their parents.

We have continued to work with Southwark Council Early Help service in the move to the new

locality based management of Children’s Centres in the borough. In May 2016, Trustees signed

the service agreement with the council to provide services in four of the six Children’s Centre

areas in Borough Bankside & Walworth, with Coin St Children & Families Centre managing the

remaining two areas.

We have provided a range of training and support sessions for parents including parenting

courses, English for Speakers of other Languages, healthy eating and counselling.

Early Education

The approach to early education at 1st Place is influenced by Reggio Emilia principles. The

principles are reflected in the way adults at 1st Place view children with respect, interact with

them, follow their interest, encourage them to ask and find answers to their questions. Early

educators and the Atelierista act as partners, nurturers and guides who facilitate children’s

exploration of open ended materials, problem solving and provide occasions for discovery and

learning. These principles are implemented through the design and use of space, engagement with

children, partnership with parents and the wider community and documentation of children’s

work.

The provision of early education places in Southwark continues to develop, with increasing

numbers of Primary schools offering 2-year-old places, and greater numbers of sessional 3 -4

year old places. As a result, we are seeing a trend for children both in our full time and part time

cohorts leaving us to attend school nursery classes when they turn three, where in previous years

they have left to go into Reception class.

This means that our nursery cohorts are now mostly under three years of age. Our provision caters

for younger children, with highest demand for places being within the 6 month to 2 years age

group. We have worked over the last 6 months to adapt our physical spaces to meet the needs of

this age group, while maintaining our 0-4 offer.

While we continue to actively manage occupancy of nursery places, especially at key points in the

year, we find that schools continue to take children into their nursery classes through the first half

of the autumn term, creating additional challenge to our administrative teams to plan. Between




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April 2015 and March 2016 168 children attended the 1st Place nursery provision at Chumleigh

Gardens 183 attended 1st Place at Cambridge House and 19 1st Place at Lorrimore Square.

Places for children needing additional support continue to be in demand, and 1st Place is

committed to working with families and other professionals to ensure that all our services are

inclusive to all children and their parents. During the 2015-16 period, ten children attended our

nurseries, of which six had Education Health and Care Plans completed. Despite the challenges

with funding 1st Place staff and managers provide a high standard of early education and care for

these children and their families and we have invested in a permanent Assistant SENDCo post to

support Early Education managers with interventions for these children.

As we move through our third year of providing the 2-year-old Free Early Learning Offer, we

continue to see the links between our Family Support team and our early education provision

develop to ensure children and their families who need additional help access these places as well

as training and advice. This year 64 children accessed these places at 1st Place at Cambridge

House, 58 children at 1st Place Children & Parents Centre and 7 at 1st Place at Lorrimore Square.

Staffing our nurseries with qualified, experienced staff has been an increasing challenge at 1st

Place and within the early education sector as a whole. Changes to examination requirements to

enable practitioners to progress to NVQ Level 3 have changed, creating a shortage of staff in an

already shrinking workforce. While the Department for Education are reviewing their current

position, this creates significant additional work for our Early Education Managers as well as our

Human Resource team. Achieving capacity at our new setting at Lorrimore Square has taken far

longer than planned as a result.

Trustees have made a commitment to appointing a Head of early Education, with the aim to bring

a qualified early years teacher onto the team to give support to our experienced Early Education

managers. Following two rounds of advertising, we were unsuccessful in recruiting to this post,

and we are currently reviewing how to provide this much needed management capacity across our

three sites.

The provision of creative learning at 1st Place has changed and expanded again this year. In

November 2015, Georgia Yiapanis joined the team as an assistant Atelierista working across

Cambridge House and Lorrimore nurseries. Eloise Robinson continues to manage the department

and works across 1st Place Children & Parents Centre and Cambridge House nurseries.

We have now managed to successfully install studios into every nursery. The studio is a space for

small group work where children can explore, experiment and create using a variety of interesting

materials. Now that we have dedicated spaces, it gives us greater flexibility in terms of leaving

work to return to, having documentation and exciting images on the wall to inspire the groups.

Each one has been adapted to suit the space and needs of each nursery. The Atelieristas are

working with staff to give them confidence in using the space when they is not there in order to

ensure the learning spreads across the whole nursery. This year we want to establish Studio




7

Champions from each room who will carry on the work in the studio and receive extra training

from the Atelieristas.

Working on a 2-month rolling programme, with the same small group of children and one member

of staff, gives time to develop a project with the children that can be easily transferred and

developed in their home room with the rest of their peers. Working in this way supports the

children to really engage and focus on something that fascinates them, they are able to test

theories, discuss their thinking and develop a collaborative approach to learning.

Family Support

The re-organisation of Childrens’ Centres in Southwark continued to develop over the 2015-16

period, with negotiations between Southwark and the lead providers in each of the four localities.

In May 2016 1st Place took responsibility for four of six Children’s Centre areas in the Borough

Bankside & Walworth locality, with Coin St Children & Families centre leading on the other two

areas. A consultation took place at the beginning of 2016 with existing 1st Place staff working

within Children’s Centre on changes to our ways of working and structure of the team. All existing

staff were retained with a third Community Family Worker joining the team in September 2016.

The Family Support team continue to work with families who need support with a range of issues.

They have excellent relationships with a wide range of partners who enable us to address the

needs of children and families identified through the Common Assessment Framework (CAF)

process. The Family Services manager attends weekly meetings with the Early Help team where

individual CAFs are discussed and the support identified. Cases are becoming more complex and

the team continue to develop their skills and knowledge through continuous professional

development and peer support.

Over the last year, the number of families using 1st Place Children's Centre services remains high,

with families from within the Centre’s reach area and from beyond it accessing services. Between

April 2015 and March 2016, there were 9051 individual attendances by adults and 8606 by

children.

We have maintained universal Children’s Centre services across the year, working with families

across our reach area. In advance of the final re-structure, in February 2016 1st Place took on the

management of Children’s Centre services at Victory School as well as at Bishops House.

The early education staff within the Family Support team directly deliver and co-facilitate ten play

learning sessions each week, including fortnightly sessions at weekends. We remain committed to

providing children and families with access to good quality play learning opportunities in a

supportive and friendly environment. We also provide sessional crèche for all training courses and

advice sessions, with a referred crèche session offering respite to those families experiencing

short-term difficulties.




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Over the last year, over 137 parents attended training courses provided by 1st Place. Our

partnership with Place2Be enters its third year, with our new counsellor offering art therapy to

clients.

The holiday play schemes for children under 8 years has become very popular over the last year,

with sessions running at half terms, Easter and over the summer holidays. The provision is very

popular with children who have left 1st Place to attend school, but we are finding increasing

numbers joining us through word of mouth. 88 children attended our holiday play schemes this

year.

Training

As part of our commitment to the development of staff, the Centre closed for training for three full

days and one half day. This year we have conducted whole centre training on:

● Safeguarding

● Reggio Emilia Approach

● Early Brain Development

● Schematic Behaviour

Volunteering & Work Placement

We have provided work placements for 14 people and 2 volunteers within our nurseries. We held a

very successful volunteering day in September 2015, with parents joining our garden contractors

to put in plants donated from the summer garden at the top of The Shard.

Monitoring and Evaluation of Outcomes

The Family Services team use the Family Star assessment tool to enable families to see the

progress made across the time they are given support. This is monitored centrally by Southwark

Council. During the last year Southwark have moved to a new software programme bringing data

from Social Care and Early Help services into the Mosaic system. It is planned that Children’s

Centre teams will begin to use this system by the end of 2016. In addition to this, a new system

for measuring the activity of Children’s Centres will be introduced, replacing the Synergy system

we have used since 2011.

Facilities and Room Hire

The room hire business has been maintained at sustainable levels, with regular weekend usage by

regular customers, generating a small but valuable surplus to support the wider organisation. As

we move to deliver Children’s Centre services across a wider area, it is not yet clear if the demand

for space at 1st Place will be maintained at the same levels. The Business team at 1st Place

continue to market our meeting rooms across the borough.




9

We were finally notified that due to budget cuts the Cuming Museum were withdrawing from

negotiations to re-locate to the ground floor if the Chumleigh Gardens West Block Almshouses

which 1st Place uses to provide a room hire business.

In January 2016 Southwark Council began improvement works. This put the majority of the ground

floor of the conference centre out of action for the first five months of the year, with an impact on

the level of bookings in the last quarter of the financial year and beyond. While the capital project

over ran the facilities are significantly improved and have had a positive impact on the

environment within the conference centre.

Financial review

After three consecutive years of generating surpluses, £102K in 2014/15, £139K in 2013/14 and

£35K in 2012/13, the accounts for 2015/16 show a deficit on unrestricted funds of £68K.

However, this still leaves 1st Place General Reserves with a healthy balance of £238K. The deficit in

last year was mainly attributed to the start-up costs of our new nursery facility in Lorrimore Square

which opened in November 2015.

Our funding from London Borough of Southwark for our existing Children’s Centre activities,

reduced in 2015/16 compared to the previous year, by approximately £60K or 20%. We did,

however, received a special contribution of £110K towards the refurbishment of the premises at

Lorrimore Square.

We will continue to focus on maximising the utilisation of nursery places. However, recruiting

suitably qualified staff is proving increasingly challenging and on occasions, limits the occupancy

we can achieve.

As the Charity has no endowed funds, the level of activities in the coming period will continue to

depend almost entirely on its ability to secure continuing income, both through grants and earned

income. The principal form of income for the Charity is through nursery fees. In addition to this

are the funds from LB Southwark – Children’s and Adult Services, which account for approximately

16% of income. The small reduction in the Charity’s reserves mean that we have not yet achieved

the aim of Unrestricted Reserves covering 3 months of operating costs. Nevertheless, even with

our slightly reduced Reserves, the Trustees consider that liabilities will continue to be paid when

falling due in the foreseeable future and that the going concern basis for the preparation of the

financial statements remains appropriate.

Principal funding

The continuing growth and success of 1st Place this year has been facilitated by consistent

funding and we would particularly like to acknowledge Southwark Children’s and Adult Services for

the allocation of Children’s Centre funding, the Free Early Education Entitlement and Free Early

Education Offer. As ever, the continued commitment of local parents to our nursery, and of local

services and groups for our room hire, is crucial to the continuation of our services.




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Investment policy and performance

1st Place banking arrangements are held with Barclays Bank. Funds are held between a deposit

account and a current account. There are no bank/savings accounts currently available that would

generate any significant interest income.

Reserves policy

The 1st Place Reserves policy is to maintain total free reserves, excluding the element which relates

to tangible fixed assets, at a level which is no less than approximately three month's operating

costs. This policy provides the ability to cope with unforeseen expenditure of both a capital and an

expenditure nature, and with interruptions in income flows. The reserves policy is reviewed and

amended annually by the Trustees.

The investment and start-up of the third 1st Place Nursery with the building refurbishment

commenced in 2015 utilised designated free reserves with anticipated income in future years

contributing to rebuilding reserves to planned levels.

The impact of the reduction in available staffing nationally has impacted on our capacity to achieve

projected levels of income and our ability to restore reserves to planed levels.

Furthermore, due to economic climate that reflects directly on to individual families’ income as

well as the complexities and timeline of Child Tax Credits and child care elements of Student

Finance have meant that 1st Place has a larger pool of debtors and potentially larger unrecoverable

debts.

The charity's total free reserves, excluding tangible fixed assets, at 31st March 2016 were

£220,688, being below target. The trustees are closely monitoring the reserves situation, ensuring

that redoubled efforts are put in place including the way in which we develop our business

activities.

Remuneration Policy

We recognise the importance of being transparent and accountable in all aspects of our work,

including how we reward and recognise our staff. We are working towards the London Living Wage

(or becoming an accredited Living Wage Employer). The London Living Wage is an hourly rate set

independently and updated annually, based on the cost of living in London. We also employ

apprentices though the government approved providers.

1st Place is committed to ensuring that we pay our staff fairly and in a way which ensures we

attract and retain the right skills to have the greatest impact in delivering our charitable objectives.

In deciding on levels of pay the following factors are taken into account:




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1 The mission, aims, objectives and values of 1st Place.

2 How any decisions might impact on the overall pay policy for all staff.

3 The type of skills, experience, competences etc. that our organisation needs.

4 A significant increase in responsibilities for a member of staff, or major change in job

description.

5 Our current strategic business plan and how this might affect future needs.

6 Our ability to pay. It is our aspiration to pay a cost of living increase each year to all staff.

7 Assessment of the individual’s performance against expectations, where possible with clear

evidence and targets.

8 Appropriate available information on pay levels in other charities relative to sector and size,

budgets, responsibilities, etc to enable us to benchmark salaries

9 Our track record in recruiting and retaining high-performing staff.

10 The likely impact of any decision on our public reputation, especially amongst our service

users and stakeholders.

Salaries

We have a team of 65 full-time and 44 part-time staff.

For 1st Place to run successfully, a large range of skills and disciplines are required, and we need

to pay appropriately to ensure that we can recruit people with the right skills. We also need to

retain them in a competitive market for the long-term, developing them and benefiting from their

growing knowledge. This is in preference to the disruption and expense of recruitment, especially

as many staff have detailed knowledge that is unique to them in the organisation and could not be

quickly replaced. Our staff pay scales are set with this in mind.

The salary of the Director is approved by our Trustee Board on the basis of recommendations from

its F&GP Sub-Committee. The Director requires a breadth and depth of expertise which requires

drawing from the best senior level talent in a competitive market. They need to be able to

command the respect of their peers, our stakeholders and our service, through their experience

and their credibility. Every three years the Directors salary is reviewed to benchmark it against

other charities in London relative to size, budgets, responsibilities and the competitiveness of the

employment market. At the same time, we seek to keep salary costs under control. The Directors

salary was last benchmarked in 2015.

Performance Management

We have a performance management and appraisal policy that:

● Promotes a consistent approach to workforce supervision throughout 1st Place.

● Ensures that supervision is geared to achieving the organisation’s objectives.

● Enhances the quality of workforce performance.

● Addresses the personal impact of work on all 1st Place’s staff, volunteers, interns and

trainees




12

Risk assessment

The trustees regularly review and assess the risks faced by 1st Place in all areas of its work, and

plan for the management of those risks. The management ensure that all plans and decisions take

into account the possibility of negative outcomes. There is a Risk Register which is compiled and

monitored monthly by the Finance & General Purposes (F&GP) sub-committee, reported on

quarterly at meetings of the Full Board and reviewed annually in order to ensure that the material

risks to which the charity is exposed are properly evaluated and managed.

Appropriate mitigating actions are implemented by the Director and senior management team to

address the residual risks, mitigating them to a level the Trustees considers acceptable.

The Trustee Board recognises that, to achieve the objectives of the charity, the nature of some of

1st Place work requires acceptance of some risks that are outside our control, that is, risks which

cannot be eliminated, so where this happens there is active and clear monitoring of the risk.

The Strategic working group reporting to F&GP sub-committee are working with the senior

management to solidify the appropriate systems and controls to monitor, manage and mitigate

exposure to risks.

Principle risks and uncertainties are assessed for impact and likelihood. The highest risk areas

have been identified as follows:

● Failure to generate sufficient income

● Failure to effectively manage budget and liquidity

● Investments in new business development undertaken during 2015/16

● Short lease on conference centre and potential loss of income

● Failure to maintain day-to-day service provision where service quality, availability and

continuity of service is affected by partial or total loss of resources such as staff, equipment,

systems, information and premises, which would result in reduced levels of service provision

and additional cost, dissatisfied clients and lost business

● Failure to provide adequate controls on customers receiving third party funding (e.g. student

finance)

● Changes to the provision of Free Early Education Entitlement

Funding for Children’s Centre services for the 2016/17 year is expected to remain at the same

level as 2015/16. Southwark Council, has completed the re-structure of the Children’s Centre

provision within the borough. The council continue to express their commitment to Children’s

Centre services in the borough, and integration with the 0-19 Early Help service.

Plans for future periods

As we enter our 12th year, the landscape for statutory and voluntary organisations who provide

early education and Children’s centre services continues to change and develop. With the

governments plans to expand the Free Early Education Entitlement in September 2017 from 15 to




13

30 hours, all providers await news on the promised increase to the funding rate. This increase will

be key to the success and sustainability of many nurseries, and brings the need to change what we

offer to enable families to be economically active, and give their children the best start possible

before the reach statutory school age. In order to ensure we can offer this to local families, 1st

Place is preparing for this by reviewing composition of our nurseries, in relation to the hours we

offer within the full day care format and academic year. With challenges to recruiting staff, we will

look at how we contract staff, and how we can support more people to work in the sector with the

possibility of more flexible working hours.

We go forward with a commitment to providing high quality early education places and excellent

Family Support through the Children’s Centre programme. With our increased Children’s Centre

reach we are well placed to reach more children and families, and offering funded sessional early

education to local children through the Free early Educational Offer at 2 years and the Free Early

Educational Entitlement for 3 & 4 year olds.

Public benefit statement

The Trustees confirm that they have complied with their duty to have due regard to the guidance

on public benefit published by the Charity Commission in exercising their powers or duties. We do

this through offering free, open to all services for children under 5, and access to support, training

and advice through 1st Place and its partners. The changes to the leadership and management of

Children’s Centres in the borough will enable 1st Place and its partners to reach out to more

children and their families.

Statement of responsibilities of the trustees

The Board of Trustees is responsible for preparing the Annual Report and the financial statements

in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the Trustees, who are also the charitable company’s directors, to prepare

financial statements for each financial year. Under that law, the Trustees have elected to prepare

the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law, the

Trustees must not approve the financial statements unless they are satisfied that they give a true

and fair view of the state of affairs of the Charity and of the income and expenditure of the Charity

for that period. In preparing those financial statements, the Trustees are required to:

● Select suitable accounting policies and apply them consistently

● Make judgements and estimates that are reasonable and prudent

● State whether applicable accounting standards have been followed, subject to any material

departures disclosed and explained in the financial statements

● Prepare the financial statements on a going concern basis (unless it is inappropriate to

presume that the Charity will continue in operation); and observe the methods and principles

of the Charities SORP




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The Board of Trustees has overall responsibility for ensuring that the Charity has an appropriate

system of controls, financial and otherwise. They are also responsible for keeping adequate

accounting records, which disclose with reasonable accuracy, are sufficient to show and explain

the Charity’s transactions and the financial position of the Charity at any time, and enable them to

ensure that the financial statements comply with the Companies Act 2006. They are also

responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for

the detection and prevention of fraud and other irregularities.

Statement of disclosure of information to auditors

We, as the directors of the charitable company who held office at the date of approval of these

financial statements as set out on page one, each confirm, so far as we are aware, that:

● There is no relevant audit information of which the charitable company’s auditors are

unaware

● We have taken all the steps that we ought to have taken as directors in order to make

ourselves aware of any relevant audit information and to establish that the charitable

company’s auditors are aware of that information

Preparation of this report

This report has been prepared taking advantage of the small companies exemption of section

415A of the Companies Act 2006.

Auditors

Sayer Vincent LLP were re-appointed as the charitable company's auditors during the year and

have expressed their willingness to continue in that capacity.

The trustees’ annual report has been prepared in accordance with the special provisions applicable

to companies subject to the small companies' regime.

Approved by the trustees on 1 November 2016 and signed on their behalf by

Mark Devlin

Chair

Independent auditors’ report

To the members of


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We have audited the financial statements of 1st Place Children and Parents’ Centre Ltd. for the

year ended 31 March 2016 that comprise the statement of financial activities, the balance sheet,

the statement of cash flows and the related notes. The financial reporting framework that has been

applied in their preparation is applicable law and United Kingdom Accounting Standards (United

Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company's members, as a body, in accordance with

Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we

might state to the charitable company's members those matters we are required to state to them

in an auditors' 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 charitable company and the charitable

company's members, as a body, for our audit work, for this report, or for the opinions we have

formed.

Respective responsibilities of trustees and auditors

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual

report, the trustees (who are also the directors of the charitable company for the purposes of

company law) are responsible for the preparation of the financial statements and for being

satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance

with applicable law and International Standards on Auditing (UK and Ireland). Those standards

require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial

statements sufficient to give reasonable assurance that the financial statements are free from

material misstatement, whether caused by fraud or error. This includes an assessment of: whether

the accounting policies are appropriate to the charitable company’s circumstances and have been

consistently applied and adequately disclosed; the reasonableness of significant accounting

estimates made by the trustees; and the overall presentation of the financial statements. In

addition, we read all the financial and non-financial information in the trustees’ annual report to

identify material inconsistencies with the audited financial statements and to identify any

information that is apparently materially incorrect based on, or materially inconsistent with, the

knowledge acquired by us in the course of performing the audit. If we become aware of any

apparent material misstatements or inconsistencies we consider the implications for our report.

Independent auditors’ report

To the members of


16

Opinion on financial statements

In our opinion the financial statements:

● Give a true and fair view of the state of the charitable company’s affairs as at 31 March 2016

and of its incoming resources and application of resources, including its income and

expenditure, for the year then ended

● Have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice

● Have been prepared in accordance with the requirements of the Companies Act 2006

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the trustees’ annual report for the financial year for which

the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006

requires us to report to you if, in our opinion:

● Adequate accounting records have not been kept or returns adequate for our audit have not

been received from branches not visited by us

● The financial statements are not in agreement with the accounting records and returns

● Certain disclosures of trustees’ remuneration specified by law are not made

● We have not received all the information and explanations we require for our audit

● The trustees were not entitled to prepare the financial statements in accordance with the

small companies’ regime and take advantage of the small companies’ exemption in

preparing the trustees’ annual report and take advantage of the small companies’ exemption

from the requirement to prepare a strategic report

Noelia Serrano (Senior statutory auditor)

15 December 2016

for and on behalf of Sayer Vincent LLP, Statutory Auditors

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

2016 2015

Unrestricted Restricted Total Unrestricted Restricted Total

Note £ £ £ £ £ £

Income from:

464 - 464 800 - 800

45,830 - 45,830 74,387 - 74,387

2 30,114 275,592 305,706 315,300 60,000 375,300

2 733,713 1,835 735,548 706,163 - 706,163

2 700,252 22,287 722,539 653,436 5,693 659,129

2 59,671 110,000 169,671 - 20,000 20,000

174 - 174 689 - 689

21,180 - 21,180 9,810 - 9,810

1,591,398 409,714 2,001,112 1,760,585 85,693 1,846,278

3 67,464 - 67,464 61,122 - 61,122

3 20,322 285,224 305,546 419,881 43,182 463,063

3 685,157 12,537 697,694 593,153 - 593,153

3 636,308 12,536 648,844 584,054 22,044 606,098

3 218,577 16,750 235,327 - 15,000 15,000

1,627,828 327,047 1,954,875 1,658,210 80,226 1,738,436

(31,800) 31,800 - - - -

(68,230) 114,467 46,237 102,375 5,467 107,842

Reconciliation of funds:

306,446 40,467 346,913 204,071 35,000 239,071

238,216 154,934 393,150 306,446 40,467 346,913

Other trading activities

1st Place Children and Parents' Centre Ltd.

Statement of financial activities (incorporating an income and expenditure account)


Donations and legacies

Charitable activities

Children's Centre Services

Chumleigh Nursery

Raising funds

Lorrimore Nursery

Investments

Other

Total income

Expenditure on:

Cambridge House Nursery

Total expenditure

Net income / (expenditure) for the

year



Lorrimore Nursery


Chumleigh Nursery

107,842(36,430) 82,667

Total funds brought forward

46,237 102,375 5,467

Total funds carried forward

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.

Movements in funds are disclosed in Note 13 to the financial statements.

Transfers between funds

Net movement in funds

17

2016 2015

Note £ £ £ £

Fixed assets:

9 115,778 22,548

115,778 22,548

Current assets:

10 73,342 42,005

422,747 419,448

496,089 461,453

Liabilities:

11 218,717 137,088

277,372 324,365

12 393,150 346,913

13

154,934 40,467

17,528 54,348

220,688 252,098

Total unrestricted funds 238,216 306,446-

393,150 346,913

Chair

Mark Devlin


As at 31 March 2016

Cash at bank and in hand

Tangible assets

Balance sheet

Company no. 05424738

Debtors

The funds of the charity:

General funds

Approved by the trustees on 1 November 2016 and signed on their behalf by

Total charity funds

Net current assets / (liabilities)

Total net assets / (liabilities)

Restricted income funds

Unrestricted income funds:

Designated funds

Creditors: amounts falling due within one year

18

Statement of cash flows

Note

£ £ £ £

14

124,480 216,042

174 689

(121,355) (24,156)

(121,181) (23,467)

3,299 192,575

419,448 226,873

422,747 419,448

Cash and cash equivalents at the beginning of the

year

Cash and cash equivalents at the end of the year

Change in cash and cash equivalents in the year



2016 2015

Cash flows from operating activities

Net cash provided by / (used in) investing activities

Net cash provided by / (used in) operating activities

Cash flows from investing activities:

Dividends, interest and rents from investments

Purchase of fixed assets

19

1

a)

b)

c)

d)

e)

f)

g)

Basis of preparation

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in

the relevant accounting policy or note.

Reconciliation with previously Generally Accepted Accounting Practice (GAAP)

Public benefit entity

Going concern

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to

the income have been met, it is probable that the income will be received and that the amount can be

measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when

the charity has entitlement to the funds, any performance conditions attached to the grants have been met,

it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Unrestricted funds are donations and other incoming resources received or generated for the charitable

purposes.

The trustees consider that there are no material uncertainties about the charitable company's ability to

continue as a going concern.

The charitable company meets the definition of a public benefit entity under FRS 102.

In preparing the accounts, the trustees have considered whether in applying the accounting policies required

by FRS 102 and the Charities SORP FRS 102 a restatement of comparative items was required. The transition

date was 1 April 2014. There were no adjustments required.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by

the charity; this is normally upon notification of the interest paid or payable by the bank.

Fund accounting

Notes to the financial statements



Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Accounting policies

The financial statements have been prepared in accordance with 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

2015) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of

Ireland (FRS 102) (August 2014) and the Companies Act 2006.

Income received in advance of the provision of a specified service is deferred until the criteria for income

recognition are met.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets

these criteria is charged to the fund.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that

have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities

within the next reporting period.

20




1

h)

i)

Cost of raising funds


Chumleigh Nursery


Lorrimore Nursery

Cost of raising funds


Chumleigh Nursery


Lorrimore Nursery

j)

15%

20%

Expenditure and irrecoverable VAT

Expenditure on charitable activities includes the costs of [delivering services, exhibitions and other

educational activities] undertaken to further the purposes of the charity and their associated support

costsOther expenditure represents those items not falling into any other heading

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party,

it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of support costs

5%

34%

35%

Rental charges are charged on a straight line basis over the term of the lease.

Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to

make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose

Operating leases

Resources expended are allocated to the particular activity where the cost relates directly to that activity.

However, the cost of overall direction and administration of each activity, comprising the salary and

overhead costs of the central function, is apportioned on the following basis which are an estimate, based on

staff time, of the amount attributable to each activity.

Accounting policies (continued)

Governance costs are re-allocated to each of the activities on the following basis which is an estimate, based

on staff time, of the amount attributable to each activity

26%

17%

17%

25%

6%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are

associated with constitutional and statutory requirements and include any costs associated with the strategic

management of the charity’s activities.

21




1

k)

l)

m)

n)

o)

Creditors and provisions are recognised where the charity has a present obligation resulting from a past

event that will probably result in the transfer of funds to a third party and the amount due to settle the

obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their

settlement amount after allowing for any trade discounts due.

Pensions

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held

separately from those of the charitable company in an independently administered fund. The pension cost

charge represents contributions payable under the scheme by the charitable company to the fund. The

charitable company has no liability under the scheme other than for the payment of those contributions.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial

instruments. Basic financial instruments are initially recognised at transaction value and subsequently

measured at their settlement value with the exception of bank loans which are subsequently measured at

amortised cost using the effective interest method.

Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £[x,xxx]. Depreciation costs are

allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for

impairment if circumstances indicate their carrying value may exceed their net realisable value and value in

use.

Creditors and provisions

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered.

Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity

of three months or less from the date of acquisition or opening of the deposit or similar account. Cash

balances exclude any funds held on behalf of service users.

Computer equipment

Office equipment

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual

value over its expected useful life. The depreciation rates in use are as follows:

Fixtures & Fittings

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the

asset will be shown as a revaluation reserve in the balance sheet.

Accounting policies (continued)

25% straight line

25% straight line

33% straight line

Computer software 33% straight line

22




2

2016 2015

Unrestricted Total Total

£ £ £ £

- 96,000 96,000 100,000

- 179,592 179,592 188,084

- - - 60,000

9,662 - 9,662 9,662

20,452 - 20,452 17,554

30,114 275,592 305,706 375,300

195,494 - 195,494 177,044

- 1,835 1,835 -

538,219 - 538,219 529,119

733,713 1,835 735,548 706,163

190,211 - 190,211 158,705

510,041 - 510,041 494,731

- 22,287 22,287 5,693

700,252 22,287 722,539 659,129

12,456 - 12,456 -

47,215 - 47,215 -

- 110,000 110,000 20,000

59,671 110,000 169,671 20,000

1,523,750 409,714 1,933,464 1,760,592Total income from charitable activities

Restricted

Sub-total for Children's Centre Services

LB of Southwark - free education entitlement

Nursery Fees

Sub-total for Chumleigh Nursery


Nursery Fees

LB Southwark: Special Education Needs

Income from charitable activities

LB Southwark: Special Education Needs

LB of Southwark: Family Support

Locality fund

Sub-total for Cambridge House Nursery


Nursery Fees

LB of Southwark - refurbishment grant

Sub-total for Lorrimore Nursery

LB of Southwark: Bishops House Children's Centre

LB of Southwark: Children's Centre

Creche Fees

23

3

Cost of

raising

funds

Children's

Centre

Services

Chumleigh

Nursery

Cambridge

House

Nursery

Lorrimore

Nursery

Governance

costs

Support

costs 2016 Total

2015

Total

£ £ £ £ £ £ £ £ £

Staff costs (Note 5) 26,379 224,906 499,327 455,134 127,413 - 117,839 1,450,998 1,303,386

Other staff costs 82 9,132 38,185 7,141 3,515 - 10,159 68,214 27,969

Direct costs - 222 28,820 27,103 7,359 515 2,044 66,063 128,102

Catering supplies 6,124 - - - - - 30 6,154 43,046

Rental equipment - 7,747 3,389 - 3,494 - 4,068 18,698 11,707

Premises costs 8,013 5,954 16,350 53,556 29,018 - - 112,891 124,332

Utilities 12,629 115 3,899 2,022 21,811 - 69,589 110,065 41,169

Office costs - 6,225 8,709 6,174 5,705 - 10,177 36,990 29,989

Legal and professional fees - - 908 1,228 257 16,560 6,068 25,021 17,817

Promotion - 102 655 2,531 745 - 2,165 6,198 -

Depreciation - - - - 16,750 - 11,375 28,125 10,919

Bad debt - - 15,154 9,322 - - - 24,476 -

Set up costs - - - - 982 - - 982 -

53,227 254,403 615,396 564,211 217,049 17,075 233,514 1,954,875 1,738,436

Support costs 11,676 46,703 79,395 81,730 14,010 - (233,514) - -

Governance costs 2,561 4,440 2,903 2,903 4,268 (17,075) - - -

Total expenditure 2016 67,464 305,546 697,694 648,844 235,327 - - 1,954,875 1,738,436

Total expenditure 2015 61,122 463,063 593,153 606,098 15,000 - -




Of the total expenditure, £1,623,957 was unrestricted (2015: £1,658,210) and £327,047 was restricted (2015: £80,226).

Analysis of expenditure


24

4

2016 2015

£ £

28,125 10,919

103,513 75,586

14,893 17,341

7,600 7,500

6,200 2,000

5

2016 2015

£ £

1,337,321 1,196,410

81,109 83,178

32,568 23,798

1,450,998 1,303,386

Staff costs were as follows:

Salaries and wages

Social security costs

The total employee benefits including pension contributions of the key management personnel were

£317,093 (2015: £278,867).



There were no trustee expenses representing the payment or reimbursement of travel and subsistence

costs (2015: £Nil).


Net income for the year

Operating lease rentals:

Auditors' remuneration (excluding VAT):

This is stated after charging / (crediting):

Depreciation

Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Property

Other

Employer’s contribution to defined contribution pension schemes

Audit

Other services

The charity trustees were not paid or received any other benefits from employment with the charity in the

year (2015: £nil). No charity trustee received payment for professional or other services supplied to the

charity (2015: £nil).

No employee earned more than £60,000 during the year (2015: nil).

25




6

2016 2015

No. No.

- -

19.1 18.5

39.9 38.7

37.6 33.8

2.8 -

16.7 12.9

- -

116.0 104.0

7

8


Chumleigh Nursery

There are no related party transactions to disclose for 2016 (2015: none).


There are no donations from related parties which are outside the normal course of business and no

restricted donations from related parties.

The charitable company is exempt from corporation tax as all its income is charitable and is applied for

charitable purposes.

The average number of employees (head count based on number of staff employed) during the year was

as follows:

Staff numbers

Raising funds

Lorrimore Nursery

Support

Governance

Related party transactions

Taxation

26




9

Office

Equipment

Computer

Equipment

Fixtures

and Fittings

Computer

Software Total

£ £ £ £ £

28,950 27,022 96,983 10,393 163,348

1,653 9,522 110,180 - 121,355

(1,279) - (10,994) - (12,273)

29,324 36,544 196,169 10,393 272,430

28,950 24,989 78,426 8,435 140,800

255 2,374 23,593 1,903 28,125

(1,279) - (10,994) - (12,273)

27,926 27,363 91,025 10,338 156,652

1,398 9,181 105,144 55 115,778

- 2,033 18,557 1,958 22,548

10

2016 2015£ £

67,445 25,393

5,897 16,612

73,342 42,005

11

2016 2015£ £

14,851 13,019

41,113 20,155

1,110 27,745

161,643 76,169

218,717 137,088

12

General

unrestricted Restricted

Total

funds

£ £ £ £

- 17,528 98,250 115,778

220,688 - 56,684 277,372

220,688 17,528 154,934 393,150


Analysis of net assets between funds

Net assets at the end of the year

Net current assets

Trade debtors

Prepayments and accrued income

Creditors: amounts falling due within one year

Accruals and deferred income

Trade creditors

Taxation and social security

Other creditors

Designated

Eliminated on disposal

At the end of the year


At the start of the year

Charge for the year


Additions in year

Debtors


All of the above assets are used for charitable purposes.


Cost or valuation

Depreciation

Net book value

Disposals in year


27




13

At the start

of the year

Incoming

resources

Outgoing

resources Transfers

At the end

of the year

£ £ £ £ £

18,649 24,122 (25,073) - 17,698

16,818 275,592 (285,224) 31,800 38,986

5,000 110,000 (16,750) - 98,250

Total restricted funds 40,467 409,714 (327,047) 31,800 154,934

22,548 - - (5,020) 17,528

31,800 - - (31,800) -

Total designated funds 54,348 - - (36,820) 17,528

General funds 252,098 1,591,398 (1,627,828) 5,020 220,688

306,446 1,591,398 (1,627,828) (31,800) 238,216

346,913 2,001,112 (1,954,875) - 393,150

The Family Support fund represents funds from the London Borough of Southwark to help run Family

Support and Training services at 1st Place.

Lorrimore fund

These funds were used to provide initial support for the new Nursery at Lorrimore Square which opened in

November 2015.

Special Educational Needs

These funds are used to provide additional support for children in the Nursery with special education

Restricted funds:

Movements in funds

Total funds

Purposes of restricted funds

Total unrestricted funds

Family Suport: Children Centre

ServicesLorrimore Fund

Bishops House Childrens Centre

Purposes of designated funds

Unrestricted funds:

Designated funds:

Special Education Needs

Fixed Asset Fund

The Fixed asset fund represents the Charity's holding of fixed assets. Fixed assets are considered to be

not easily realisable and, in accordance with the SORP, should not be represented by free general funds.

The fund balance carried forward is equal to the net book value of the fixed assets.

The Bishops House Children's Centre fund represents funds from the London Borough of Southwark to

help run Family Support and Training services at Bishops House Children's Centre, expanding the Charity's

reach in the west of the locality.

Family Support

28




14

2016 2015

£ £

Net income / (expenditure) for the reporting period 46,237 107,842

(as per the statement of financial activities)

Depreciation charges 28,125 10,919

Dividends, interest and rent from investments (174) (689)

(Increase)/decrease in debtors (31,337) 106,321

Increase/(decrease) in creditors 81,629 (8,351)

Net cash provided by / (used in) operating activities 124,480 216,042

15

2016 2015 2016 2015

£ £ £ £

35,875 35,875 552 552

94,000 102,000 - -

96,000 112,000 - -

225,875 249,875 552 552

16 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in

the event of winding up is limited to £1.

Less than one year

One to five years

Over five years

Operating lease commitments

Reconciliation of net income / (expenditure) to net cash flow from operating activities

Property Equipment

The charity's total future minimum lease payments under non-cancellable operating leases is as follows

for each of the following periods

29

charity number: 1120124 1st place children and parents ... · independent auditors' report ......

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