The Directors present their report and financial statements for the year ended 30 June 2022.
Directors
The Directors of the charitable company are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Directors.
The Directors serving during the year and since the year end are detailed on page 9.
The financial statements have been prepared in accordance with the accounting policies set out in note 2 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) , 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 2019) .
The charity's objects are as set out in its Memorandum and Articles of Association are:
1. To promote the care and education of children in need of care during out of school hours and school holidays and to promote the provision of facilities for the recreation and other leisure time occupation of children in the interest of social welfare with the object of improving their condition of life;
2. To advance the education and training of persons providing such care and education and recreational facilities.
The aims of the charity are:
To provide a secure environment for children before and after school and during holidays;
To provide affordable, reliable and good quality childcare to meet the needs of single parents, working parents, parents returning to education and the workplace;
To develop the interests and talents of children through a structured programme of activities;
To work closely with the school and local community to provide high quality learning experiences for children;
To provide stimulating and meaningful activities which will develop children's awareness of themselves, their environment and the people around them;
To provide children with opportunities to visit places of interest;
To achieve and maintain the National Care Standards in early education and childcare;
To ensure our service meets the needs of children and parents in accordance with the principles underpinning the National Care Standards;
To ensure the Club as an employer and the Club's staff as workers operate within the Scottish Social Services Council Code of Practice.
The main objectives in the year ended 30 June 20 22 were to maintain the high standards which the Club has set and embrace new opportunities.
The strategies for achieving these objectives were effective management by the Board, appropriate training for all staff and good management of finances.
The year from July 2021 to June 2022 saw a significant period of change for the club(s). Fiona Ansdell, General Manager retired after a 30-year tenure at the helm of the club – with a lovely send off from each club at Hyndland, Thornwood and Notre Dame.
We continued to prioritise offering a welcoming, supportive, and fun “Afty” and strove to facilitate the best possible service to the families that use our clubs. During the period from August 2021 until March 2022 we continued to follow strict cohort groups, separating all equipment and play spaces due to the continued effects of Covid-19. However, thankfully, from March 2022, we were able to slowly re-introduce more activities/systems due to Government guidance restrictions also lessening. The feedback from parents and children highlighted that it was great to get back to a more “normal” service, making the club more enjoyable for the children who were attending.
In addition, we saw some significant changes to the Management Board – with the departure of Fiona Ansdell (General Manager and Company Secretary) and Fiona Campbell-Downes (Secretary to the Board) – we would like to thank both for their valued service and commitment to Afty through some extremely challenging times and wish them both well in the future.
We also saw the recruitment of several new members to the Management Board after the last AGM in November 2021. Sarah Deane, Emma Thompson, John Wilson, Lesley Stewart and Kate Gray have all joined the board and been more active in supporting the club than they could possibly have imagined – many thanks to them all!
During this year, we also saw the departure of John Ansdell from his position as Manager of the Notre Dame branch of the Afty and we thank him for his service.
As a temporary measure, Caroline James moved up to our Notre Dame branch as Acting Manager, ably assisted by Lauren Davidson and in order to support Paddy in his Acting Manager role at our Hyndland branch, Christopher Dewar and Dan Cox were temporarily moved into acting Assistant Manager roles there. It has been fabulous to offer these talented staff an opportunity to act in management roles during this period. They – and the whole staff team – have continued to work tirelessly to deliver a wonderful service to the children and families of Afty throughout these challenging times.
Hyndland
Since The Covid-19 pandemic , the club has shifted and adjusted according to multiple guidance updates. The end of the Summer Holiday club and the start of the school term in August 2021 offered a positive change towards a version of normality where we were able to split in half across the service, rather than into smaller groups. Splitting into P1-3’s and P4-7’s allowed us to take advantage of the space provided to us by the school and allowed a welcome return to cross-year group play for the children.
After the October half term break in 2021, we were able to – at last – move back to our pre-covid model of service delivery where every child accessing the club-hall rather than running our separated service. The Halloween party proved to be a great example of how this could happen safely and successfully; with lots of children coming together in the same space whilst multiple Afty Staff ran spooky themed activities, there was a sense of hope for how the service might look as we moved away from the pandemic.
Things continued this way and the navigating of Covid procedures became slightly more manageable due to staff receiving the Covid-19 vaccines, even with the rising Omicron cases. In the new year Omicron cases continued to rise, which affected staffing but we were able to run a routine service due to our Covid staffing procedures. From February 2021, we were able to run a somewhat uninterrupted service as we moved into an optimistic Spring.
Numbers of children accessing the service remained capped due to some of the COVID requirements during this period – but we have managed to fill all available spaces for the most part and the service continued to see demand for places from new and returning children and families.
Staffing
As we moved into the new session in 2021 and away from the Covid-19 restricted service, we had 17 staff members. Our staff turnover throughout this time was high due to the extra demands across all staff. Between June 2021 and July 2022 eight staff members have left, and six new staff members have started.
Partnership with the school
We continue to have a wonderful, supportive relationship with the Hyndland Primary School team and Helen Brown and her team continue to support the work of the service. We were sad to say goodbye to Janny John – and that his send-off was thwarted by COVID. However, his replacement janitor, Brian Masche, has managed to fill his shoes and we thank him for all his work behind the scenes on our behalf.
Training
There was a First Aid training course, in person, in May 2022, in addition to the required online iHasco training that staff completed.
Thornwood
Attendance
Attendance at Thornwood continues to be varied- as with previous years, many of our families that use the service are studying/are from other countries, therefore, academic timetables were reflected in the numbers we had each day. Covid-19 also continued to have an effect due to many parents/carers working from home, therefore, did not need the service as frequently as before, if at all.
Continued COVID recovery
During 2021/22 session we continued to have:
Frequent support meetings for all staff continued.
Continue to work closely with our school/Head teacher regarding government guidance and accessing more areas for children during Afty time.
Enhanced cleaning schedules, personal hygiene, risk assessments, rotas, and activity planning continued.
In March 2022
While our dining hall was split into two halves when having snack, children were able to mix more freely after eating, ensuring windows are open for ventilation.
When inside for activities, children are no longer asked to sit at separate tables in their cohorts- feedback from children was positive and they demonstrated excitement to be able to fix more freely with friends in different cohorts.
We continued to utilise our great outdoor spaces and shelters as much as possible.
Staffing
No change to our staff team- our staff team continued to be Mark, John, and myself at Thornwood, and Rhona split between Thornwood and Hyndland clubs.
Training
10/5/22 and 17/5/22 - John and Arlene completed First Aid training (6 hour course over 2 evenings).
By June 2022 Mark was coming to the end of his SVQ Level 7 – Social Services: Children and Young People.
Partnerships
We continued to have a very healthy partnership with the school staff team, nursery, and Head Teacher. On many occasions during heightened restrictions, we were able to use many additional spaces within the school building and access more outdoor spaces put in place by the school – for example, new climbing frames, and outdoor classroom.
‘Healthy Mind and Body’- Partick and Thornwood Ideas funded Project
Having received £972 of community funding from Partick and Thornwood Ideas fund, we provided 8 children with funded ‘mini club’ experiences at Thornwood Afty.
Children enjoyed the option of football training, or Christmas crafts on Tuesdays, Wednesdays, and Thursdays during November-December 2021.
Total overall Expenditure to carry out project: £978.56
Each session also provided the children with a healthy snack on arrival.
Feedback was very positive from both parents/carers and children.
One parent decided to book full sessions with the service after the project due to the great experience the child had had, bringing more business and exposure to the club.
Below are some quotes/feedback from the parents, children, staff, and head teacher:
‘Football training was epic!’
‘My mum was so happy with the mug I made her for Christmas!’
‘My daughter really enjoyed coming to after school club, and it’s helping her with her anxiety, so I am thinking of putting her into after school club couple days a week after the new year.’
‘My son loved every minute of it, thank you all. Great job!’
‘I think it went really well, the kids enjoyed it and wanted to come back again after the Christmas break.’
‘Was really good, but I think there are some things that we could change next time that would make it even better, but this was only the first time doing it, so for a first run it went really well!’
‘The children were so excited about the project and all the fun things that they got to do- big well done to all the staff.’
Notre Dame
After over 20 years with Hyndland After School Club, John Ansdell, Manager of Notre Dame Kids Club branch, moved on from the service to start a new job. We would like to thank him for his years of service to the Afty – in particular, the setting up of Notre Dame Kids Club in 2015 and we wish him well in his future endeavours. As a result of this, Caroline James and Lauren Davidson stepped up to manage the service during this period and they have provided a smooth transition during this time for the staff, children and families of this service.
Despite the change in management, we have managed to run the club smoothly through this period. Huge thank you to the Notre Dame staff, without their hard work and dedication it would have been very difficult.
Attendance
Our numbers have stayed constant during this period – with Friday continuing to be the quietest day. We were able to review the waiting list enabling us to offer places to some new families which was very exciting. The club continues to offer places to mostly capacity – with a waiting list still in operation.
Staffing
Staffing from Jan – June was healthy, with us being over staffed a few days. This allowed for children who needed extra attention to have that which was really helpful for settling children after the changes within the staffing team. Both Eilidh Bryant and Sehyr Ali now have their level 3 SVQ which is a huge asset to the club. Staff completed first aid training, with more training planned
Activities
Since January 2022 – with a continuing return to more “normal” ways of operating the club, we have spent less on games and toys and started a star chart to encourage children to take ownership of the toys and equipment we have. This resulted in some very serious playground clean ups!
Partnership with the school
We have continued to work closely with the Head Teacher and staff of the school. During the COVID period, the spaces around the school had to be used significantly differently and as a result, the space available to the club was significantly restricted, so having less equipment has helped us manage the space a bit better, but we are working with the school to secure more space for seasonal equipment.
AGM – November 2021
We held our AGM via Zoom again and were extremely heartened by a huge attendance from parents/carers this year – more than ever before. We were able to report on the early signs of recovery from COVID where we had been able to start operating as a service again – after a period where staff had been furloughed on the Government scheme (with the additional 20% of their salaries being paid by the Afty from reserves during this time).
Thank You!
T here are – as ever – so many people to thank:
The management team and playworker staff
The support team whose jobs are often hidden from view – but are vital to the smooth running of the club (Fiona Hide and Kathy Melvin)
The families who use our services
The management board – who have gone above and beyond during this period in so many ways
The wonderful Head Teachers and school communities that we are lucky enough to work in partnerships with
AND, most importantly
THE WONDERFUL CHILDREN OF THE THREE SCHOOL COMMUNITIES WHO BRING US ALL TOGETHER TO PROVIDE SUCH A GREAT AFTER SCHOOL AND HOLIDAY CLUB PROVISION.
The charity reported a deficit for the year of £ 1,019 (2021 : deficit of £86,889) and has reserves available at the year end of £76,528 ( 2021 : £77,547 ) all of which are unrestricted.
Reserves & Risk Management
The trustees aim to hold the equivalent of at least three months running costs within general reserves in case the charity should find itself subject to a significant drop in income. The charity also holds in reserve amounts to cover contingency costs should the After School Club be forced to relocate to new premises.
The accounts for 2020-2021 saw us with a loss of £86k. The majority of that would be attributed to COVID restrictions, the health and safety requirements and the decision to pay the 20% of staff salaries not covered by the furlough scheme. The club has always striven to be a fair employer – even more so during the tough times. The reduced income due to COVID also had an effect and our reserves reduced to £77 , 547 at 30th June 2021 .
Th is year 2021-22, we have reported a modest deficit of £1 , 0 19 and are hopeful that the tide has well and truly turned regarding COVID.
2021/22 has seen a return to a more settled attendance and collection of fees. We have thankfully been able to offer a full service across our 3 sites and a good programme of activities at our holiday clubs. This has helped to generate regular income, more in line with pre covid levels. We were also successful in our application to Glasgow City Council for the Childcare Sector Omicron Impacts Fund, and the funding received in early 2022 helped offset some of the lost revenue in the previous year.
As always, our staffing costs are our largest expense and have remained high during the year. Staffing quotas have had to be increased to deal with ongoing covid outbreaks and staff absences. Although we have also continued to invest in staff training, and resources for the children, managers at all clubs have done well to keep spending within budgets and look to reduce costs where possible.
At the time of writing the Board of management are happy that the reserves have not further declined and we hope to see them begin to increase gradually over the next number of years. We recognise that our reserves are quite modest in size and will continue to monitor this carefully as we continue to recover. We will continue to monitor finances every quarter as a management board.
Risk management
The Directors has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Going Concern
Going concern considerations – the Board of Directors consider all available information about the future at the date they approve the accounts. They consider the information from the budget and forecast for income, expenditure, and cash-flow. It is the belief of the Board that the outcome of their considerations is a positive one. Despite COVID-19, the organisation’s reserves are still reasonably healthy and with continued good financial governance we believe Hyndland After School Club to be a going concern.
Future plans
We hope to continue to return to a pre-covid service, broadening our approach to activities and projects, and build on the positive, fun, and supportive experiences that the children have at the club. We also hope to continue to develop a more collaborative working ethos within our management and staff team across all three clubs.
Governing document
Hyndland After School Club is a charitable company, limited by guarantee, incorporated on 5 November 2001. The company was established under a Memorandum of Association, which establishes the objects and powers of the company, and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
The Directors who served during the year and up to the date of signature of the financial statements were:
Appointment of Directors
Members wishing to become directors must be recommended by the Board or proposed by a fellow member of the charity. The member then stands for election at a general meeting.
Organisational structure
The organisation is governed by a voluntary Board of Directors. Responsibility for day to day activities is delegated to a General Manager who is supported by individual club managers/assistant managers. The charity is in the midst of a staffing re-structure, with a new General Manager starting in January 2023.
Directors' induction and training
All Directors are welcomed into the organisation and supported by their fellow Directors in their induction and training. The Board continually review training and development needs to ensure that they are able to fulfil their duties.
A resolution proposing that Alexander Sloan, Accountants and Business Advisers, be reappointed as auditors of the charitable company will be put to the Annual General Meeting.
The Directors' r eport was approved by the Board of Directors.
The directors, who are also the trustees for the purpose of charity law, are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Opinion
We have audited the financial statements of Hyndland After School Club (the ‘charity’) for the year ended 30 June 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .
In our opinion, the financial statements:
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Directors' r eport, which includes the d irectors ' r eport prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the d irectors ' r eport included within the Directors' r eport has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the Directors' r eport.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:
adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies ' exemptions in preparing the Directors' r eport and from the requirement to prepare a s trategic r eport.
As explained more fully in the s tatement of Directors' r esponsibilities, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
We have been appointed as auditor under Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the charity through discussions with Directors and other management, and from our wider knowledge and experience of the charity sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006, Charities SORP (FRS 102) and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 1 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing most recently published Care Inspectorate reports.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s ://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees 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, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Income from charitable activities
C ost of c haritable activities
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities. All income and expenditure is unrestricted in both the current and prior year.
In preparing the financial statements, the Directors are required to make estimates and assumptions which affect reported income, expenses, assets, and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
One of our key assumptions relates to our ability to operate our childcare facilities and hence generate income, without further substantial periods of lock-down or disruption/restriction upon the number of children which we can accommodate within our clubs.
Our financial projections, which support our going concern assessment, are based on an estimated number of children attending each day together with the operation of our traditional holiday programmes.
Hyndland After School Club is a charitable company limited by guarantee and incorporated in Scotland. The registered office address and principal place of business is 44 Fortrose Street, Glasgow, G11 5LP .
The financial statements have been prepared in accordance with the charity's Memorandum of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant Notes to these financial statements.
At the time of approving the financial statements, the Directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements. Further details of this assessment are included on Page 7 of our Directors' Report.
Funds are classified as unrestricted funds, and are defined as follows.
Unrestricted funds are expendable at the discretion of the Directors in furtherance of the objects of the charity. If parts of the unrestricted funds are earmarked at the discretion of the Directors for a particular purpose, they are designated as a separate fund. This designation has an administrative purpose only and does not legally restrict the Directors’ discretion to apply the fund .
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.
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations and legacies
Donations are recognised when the charity has evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Entitlement usually arises immediately upon receipt, however, in the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Income from Charitable Activities
Income from charitable activities includes income earned both from the supply of goods or services under contractual arrangements and from performance-related grants which have conditions that specify the provision of particular goods or services to be provided by the charity. Income from charitable activities is recognised as earned (as the related goods or services are provided).
Other trading activities
Income from other trading activities includes income earned from both trading activities to raise funds for the charity and income from fundraising events and is recognised when the charity has entitlement to the funds, it is probable that these will be received and the amounts can be measured reliably.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured or estimated reliably.
Liabilities are measured on recognition at historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. The exception is that certain financial instruments must be adjusted to their present value; these include financial liabilities where settlement is deferred for more than 12 months after the reporting date.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
Raising Funds
Expenditure on raising funds includes all expenditure incurred by a charity to raise funds for its charitable purposes. It includes the costs of all fundraising activities and events together with those costs incurred in seeking donations, grants and legacies and investment management costs.
Expenditure on Charitable Activities
Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. The costs of charitable activities presented in the Statement of Financial Activities includes the costs of both direct service provision and the payments of grant awards if applicable.
Governance costs
Governance costs (which are included as a component of support costs in accordance with SORP) comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include those related to constitutional and statutory requirements, external scrutiny (audit or independent examination), strategic management, and other legal and professional fees.
Irrecoverable VAT
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
Hyndland After School Club rents the premises at Fortrose Street from Glasgow City Council, the agreement for which operates on a month to month basis, therefore any costs relating to renovation and refurbishment of this premises incurred by the charity are expended through the Statement of Financial Activities in the year they are incurred.
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:
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.
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.
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.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
Debtors
Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid after taking account of any discounts due.
Creditors and Provisions
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.
Deferred income represents income received for services not yet provided. Income is released upon provision of the services.
Activity Based Reporting
The Trustees are of the opinion that the activities of the charity are inter-linked, falling under the single category of childcare for reporting purposes. Therefore no further analysis of income and expenditure is provided within these financial statements.
Grants
Income from charitable activities
Childcare fees
C ost of c haritable activities
Project and activities costs
Premises costs
Running costs
Legal and professional
Accountancy and payroll costs
Interest and finance charges
Bad and doubtful debts
Governance costs
No director nor any persons connected to them received emoluments or any reimbursement of any expenses during the year.
The analysis of auditor's remuneration is as follows:
The charity operates a defined contribution pension scheme (NEST) in respect of eligible employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the charity and amounted to £10,305 (20 2 1: £7,999).
The average monthly number of employees during the year was:
Accruals and Deferred income includes £16,091 (20 2 1: £27,649) of fee income received before the year end which has been paid in advance by families for use of the Clubs and activities after 30th June 2022. These are anticipated to be recognised in full in 2022 /2 3 .
The income funds of the charity include restricted funds comprising the following balances of donations and grants held on trust for specific purposes:
Coronavirus Job Retention Scheme : The charity accessed available grant funding in the previous year from the Coronavirus Job Retention Fund Scheme. The grant income and associated salary costs were recorded through this fund.
Scottish Government Transitional Support Fund : The charity accessed available grant funding in the previous year from the Government Transitional Support Fund. This helped to cover the costs regarding Covid-19 restrictions cleaning requirements, staffing and multiple resources for the 'bubbles'. The grant income and associated costs were recorded through this fund.
Income
Expenditure
Income
The remuneration of key management personnel is as follows.
Key Management Personnel
Hyndland After School Club consider the Board and the two General Managers as key management personnel with regard to directing, controlling and running the charity's daily activities.
The Directors are defined as related parties of the charity. In the financial year 2021/22 , childcare fees of £ 22,740 (20 21 : £ 10,876 ) were payable by the Directors. Fees of £25 were outstanding at the year end (20 21 : £ nil ). Childcare fees payable by Directors are billed on normal commercial terms.
During the year, the Charity paid Ian Andsell £ 760 (20 21 : £1, 795 ) for computer maintenance. Ian Andsell is the husband of the former company secretary, Fiona Andsell, and the payments were made at arm's length.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Durin g prior financial periods, Glasgow City Council refurbished our Hyndland After School Club building . The financial statements do not reflect the value of these works, which were borne by Glasgow City Council as owner and lessor of the property. We are indebted to the Council for providing our enhanced environment.
In common with many other charities of our size and nature, we use our auditors to assist with the preparation of the Statutory Financial Statements.
The charity had no debt during the year.