Annual Report for Jersey Child Care Trust 2005

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A decision made (23.08.06) to approve the Annual Report and Financial Statement of the Jersey Child Care Trust - December 2005.

Subject:	Annual Report and Financial Statement of the Jersey Child Care Trust 31 December 2005
Decision Reference:	MD-ESC-2006-0051	Exempt clause(s):		n/a
Type of Report (oral or written):	Written	Person Giving Report (if oral):		n/a
Telephone or e-mail Meeting?	n/a	Report File ref:		Annual Report and Financial Statement of the Jersey Child Care Trust 31 December 2005
Written Report – Title:	Jersey Childcare Trust Report and Financial Statements 31st December 2005	Written report – Author:		GC Powell
Decision(s): The Minister approved the Report and financial statements and agreed to publish the documents in the States as an R&C
Reason(s) for decision: Under the terms of the JCCT constitution and the partnership agreement between the JCCT and ESC, The Minister is required to publish the above documents in the States each year.
Action required: The Attached documents to be submitted to the Greffe for publication as an R&C
Signature:			Date of Decision:

Annual Report for Jersey Child Care Trust 2005

THE JERSEY CHILD CARE TRUST

Report and Financial Statements

31 December 2005

Trustees' report 1

Statement of Trustees' responsibilities 5

Independent auditors' report 6

Statement of financial activities 7

Balance sheet 8

Notes to the accounts 9

trustees

G C Powell CBE (Chairman)

M Baudains

C J Anderson (Secretary)

I M Le Feuvre MBE

J A Martin (resigned 31 December 2005)

S A Blackmore

R Newell

P Wojciechowski (Treasurer)

L MacKenzie (appointed 16 May 2006)

childcare executive director

F Breen (appointed 18 May 2005)

bankers

HSBC Bank

2 Hill Street

St Helier

Jersey JE4 8NJ

LEGAL ADVISERS

Crill Canavan

40 Don Street

St Helier

Jersey JE1 4XD

address

The Bridge

Le Geyt Road

St Saviour

Jersey JE2 7NT

The Trustees present their report along with the financial statements of the Jersey Child Care Trust (“the Trust”) for the year ended 31st December 2005.

The financial statements have been prepared in accordance with the accounting policies set out on page 9, and comply with the trust deed.

Constitution and objectives

The Trust was established under a trust deed by the States of Jersey on the 5th December 1997 and was incorporated as an Association under the Loi (1862) sur les teneures enfidei commis et l’incorporation d’associations.

The Trust’s charity number is 241.

The Trust’s aim is to co-ordinate, promote and facilitate the expansion of high quality and affordable childcare in the Island. The initial objectives first outlined by the working party in December 1997 were incorporated into the Constitution of the Trust and remain the core of our work. These are to:

· Promote high standards of childcare;

· Monitor and seek to improve the accessibility of childcare facilities and services in the island;

· Promote and encourage improvements in the status and conditions of service for childcare staff;

· Promote training and development of staff in the childcare sector;

· Provide information and advice to all interested parties and co-ordinate childcare provision across all public and private sectors;

· Sponsor and support research into childcare needs;

· Identify market needs, stimulate and facilitate new developments and encourage and facilitate partnerships which enhance childcare provision; and

· Attract funding to boost prime initiatives for all of the above.

Organisation

The Trustees who have served during the year and since the year end are set out on page 1. The States on the recommendation of the Education, Sport and Culture Minister appoints the chairperson, who is not a member of the States of Jersey. The Education, Sport and Culture Minister nominates one trustee who can be a member of the States and that Ministry. The Social Security and the Health and Social Services Ministers nominate one trustee each, who may not be members of the States or those Ministries. The remainder of independent trustees are appointed by the Board of Trustees. The Trustees serve for a period of three years.

The Trustees meet three times a year. There is an executive committee which includes co-optees of the board, and which meets more frequently to deal with administrative matters and to assess grant applications. The executive committee reports to the full Board of Trustees.

Financial review

The Trust received grants from the States of Jersey of £217,500 in 2005 (2004: £287,729) made up of £162,500 (2004: £222,729) for administration and core activities and £55,000 (2004: £65,000) in support of the implementation of the Foundation Stage Initiative.

The Trustees were again grateful to receive donations of £28,795 in 2005 (2004: £21,009) for both general and strategic activities, and also certain donations in kind, including voluntary help.

The Trust also received grants of £15,000 (2004: £15,000) from BBC Children In Need and a management fee of £10,000 (2004: £10,000) from the School Aged Discount Scheme.

The total funds at the year-end, after transfer of the deficit for the year of £44,057 (2004: deficit £13,640) amounted to £110,214 (2004: £154,271).

Staffing

At the end of 2005 the Trust employed 4.6 full time equivalent Trust staff and 1 full time equivalent project staff member funded by external sources (4.6 full time equivalent Trust staff and 1.4 full time equivalent project staff funded by external sources at the end of 2004).

Grant Making Policy

The Trust invites applications for grants from the childcare sector. In the year 2005 this was done on a rolling programme basis and invited providers of childcare services to apply for funding to support the Trust’s main objectives of accessible, affordable, quality childcare for the children of Jersey.

The executive committee in addition to the executive director reviewed the applications and the criteria laid out in the application form, measured and applied to all applicants.

All successful applicants were required to sign a memorandum of agreement. They were required to supply the Trust with a report of the project as detailed in the initial application. Each successful recipient of the grant was then visited either by a Trustee or a member of the Trust staff.

The grant making policy is reviewed and evaluated at the end of each year and in 2005 it contributed towards the development of 116 extra childcare places.

Review of the activities and future developments

Following the recommendations within the publication, “Investing in our Future” by the Education, Sport and Culture Committee in July 2005, the Trust continues to work towards its aim “to co-ordinate, promote and facilitate the expansion of high quality and affordable childcare provision in the Island”. Education, Sport and Culture also recommended that the Trust continue its role within developing more family friendly workplaces offering flexible working practices and so this was re-introduced towards the end of the year.

The Trust’s core activities in 2005 continued to ensure the Trust is making a difference to the quality, accessibility and affordability of childcare provision in Jersey. These core activities include:

a. 16 Quality Grants to childcare providers totalling £16,086, which contributed towards 116 extra childcare places.

b. A Special Needs Project, which facilitated 12 children’s access to mainstream early years childcare through one to one support workers.

c. Provision of a Staff bank. The Staff Bank had 30 members at the end of 2005 (32 at the end of 2004). All members are required to do basic childcare training within six months of joining, including First Aid. Two members successfully gained the NVQ 2 in Childcare and Education with financial support from the Trust and the Training and Employment Partnership (TEP).

d. Provision of Continuous Professional Development courses for childcare staff. This has been generously financially supported by TEP and we provided 1,462 places in 2005 (1,082 in 2004).

e. Administration of the School Age Discount Scheme on behalf of the Social Security Department. Funds totalling £332,000 were administered to 460 parents of school aged children attending play care and activity club settings.

f. Provision of an Information Service for parents and providers of childcare.

g. A database has provided the Trust with a superb information storage and retrieval system. The Trust is receiving, on average per month, over 150 calls to the Information Service primarily from parents, child carers and childcare providers. This service also includes the development of publications and leaflets for example, “The Babysitting Guide for Parents” and a newsletter and training flyer three times a year with a circulation of over 1,500 to childcare providers, parents, professionals and politicians.

h. Assistance to the sector with retention of existing qualified staff through J-Category Housing Applications.

i. Raising the status of issues for children.

The Trust facilitates the implementation of the 5-year strategy and in 2005:

 The 28 private Foundation Stage settings in Jersey were offered training and support by the Foundation Stage Advisory Teacher. A comprehensive training programme offering 19 training sessions was designed to meet the needs of the sector culminating in a trip to the UK for 10 practitioners. This included a visit to a variety of Foundation Stage settings, including an Early Excellence Centre and two Children’s Centres.

 The success of the Nanny Accreditation Scheme largely depends upon the introduction of the Income Support System, at which point the Treasury will be able to consider the inclusion of tax breaks for parents employing an Accredited Nanny.

 The Trust secured funding from the Association of Jersey Charities to ensure the Special Needs Inclusion Project could meet the referral needs.

 The Play as Healing Conference was organised by the Trust in partnership with the British Institute of Therapeutic Playworkers. 70 delegates attended the two day event with 5 UK speakers and trainers.

 The Trust worked on the NSPCC Pathways Project both at strategic and operational level to help its successful development.

 The Executive Director and Deputy Director were involved in the delivery of training to fill the gaps in training provision where appropriate.

 The Trust developed and maintained links with key strategic partners and service providers to support the implementation of the work of the Trust.

To ensure successful implementation of its work, the Trust worked closely with the Education, Sport and Culture Department, and also with a number of other public and private agencies. These working relationships are important and enabled the Trust to meet its objectives in 2005 more effectively than would otherwise have been the case.

Looking forward to 2006, the Trust has recognised the need to play its part in controlling public expenditure. Through staff restructuring, the prioritisation of its work programme, and the use of reserves, the Trust will be able to maintain its essential core activities but with a significantly reduced budget.

By order of the trustees:

G.C.Powell CBE (chairman)

Date…………

The trustees are responsible for the preparation of the financial statements which give a true and fair view. In preparing them, the trustees are required to select suitable accounting policies and then apply them consistently, make judgements and estimates that are reasonable and prudent, state whether applicable accounting standards have been followed and to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue. The trustees are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF JERSEY CHILD CARE TRUST

We have audited the financial statements of Jersey Child Care Trust for the year ended 31 December 2005, which comprise the statement of financial activities, the balance sheet, and the related notes 1 to 8. These financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the Trustees, as a body, in accordance with our engagement letter dated 5 May 2006. Our audit work has been undertaken so that we might state to the 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 Trust and the Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees’ and auditors

As described in the statement of Trustees’ responsibilities the trustees are responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Our responsibility is to audit the financial statements in accordance with relevant Jersey legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view, in accordance with the relevant financial reporting framework, and are properly prepared in accordance with the Trust Deed. We also report to you if, in our opinion, the Trustees’ report is not consistent with the financial statements, if the Trust has not kept proper accounting records, or if we have not received all the information and explanations we require for our audit.

We read the Trustees report for the above year and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Trustees’ in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Trust’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion

In our opinion:

· the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the Trust’s affairs as at 31 December 2005, and of its deficit for the year then ended; and

· the financial statements have been properly prepared in accordance with the Trust Deed.

Deloitte & Touche

Chartered Accountants

St Helier, Jersey

THE JERSEY CHILD CARE TRUST

STATEMENT OF FINANCIAL ACTIVITIES

Year ended 31 December 2005

	Note	2005 £	2004 £

INCOMING RESOURCES	1
Donations		28,795	21,009
Activities in furtherance of the Trust objectives:
States of Jersey grant - General		217,500	287,729
BBC Children In Need		15,000	15,000
Discount scheme		10,000	10,000
Deposit interest		4,180	5,120

Total incoming resources		275,475	338,858

Resources expended
Costs of generating funds:
Fundraising and publicity		20,101	20,808
Charitable expenditure
Grants payable		13,236	15,037
Childcare activities		54,119	76,308
Support costs		162,163	167,899
Management and administration		69,913	72,446

Total resources expended	2	319,532	352,498

Net movement in funds		(44,057)	(13,640)

Fund balances at 1 January		154,271	167,911

Fund balances at 31 December		110,214	154,271

All activities are derived from continuing operations.

The notes on pages 9 to 11 form part of these accounts.

	Note	2005 £	2004 £
FIXED ASSETS
Tangible assets	3	12,326	18,586

CURRENT ASSETS
Loans	4	2,250	8,083
Debtors		7,769	592
Short term deposits		89,843	108,106
Cash at bank and in hand		13,130	86,300
Cash at bank - Childcare Discount Scheme	5	35,422	14,557

		148,414	217,638

CREDITORS: amounts falling due within one year
Creditors and accruals		(12,524)	(67,396)
Creditor – Childcare Discount Scheme	5	(38,002)	(14,557)

		50,526	81,953

NET CURRENT ASSETS		97,888	135,685

TOTAL ASSETS LESS CURRENT LIABILITIES		110,214	154,271


NET ASSETS		110,214	154,271

Represented by:

FUNDS
Unrestricted		110,214	154,271
Restricted		-	-

		110,214	154,271

The notes on pages 9 to 11 form part of these accounts.

These financial statements were approved by the trustees on 2006.

Chairman Secretary

1. PRINCIPAL ACCOUNTING POLICIES

The accounts have been prepared in accordance with applicable accounting standards in the United Kingdom and the requirements of the Statement of Recommended Practice – Accounting and Reporting by Charities (SORP 2005).

Basis of accounting

The accounts have been prepared under the historical cost convention.

Donations and other income

Donations and other income are credited as income in the year in which they are receivable.

Grants receivable

Grants are credited as income in the year in which they are receivable.

Charitable expenditure

Grants payable are recognised as a liability when the Trust is under an obligation to make a transfer to a third party.

Childcare activities include all expenditure incurred on activities in pursuance of the Trust’s objectives under its constitution. The direct costs of supporting these activities, including staff, establishment and other overhead costs are separately analysed and shown as support costs under this heading.

A proportion of staff, establishment and other costs is attributed to support costs, fundraising and publicity and to management and administration costs according to an estimate of the staff involved supporting each activity or other estimated basis.

Tangible fixed assets

Depreciation is calculated to write down the cost of tangible fixed assets less their residual values at the following annual rates in order to write off each asset over its estimated useful life.

Owned assets:
Office equipment	25%	Straight line
Furniture, fixtures and fittings	10%	Reducing balance

Operating leases

Rental costs under operating leases are charged to the statement of financial activities in equal amounts over the period of the lease.

Funds

The Trust’s funds consist of unrestricted amounts. The Trust may use unrestricted amounts at its discretion.

Cash Flow Statement

The Trust is exempt from the requirement to prepare a cash flow statement in accordance with FRS 1 Cash Flow Statements (Revised 1), as it falls within the definition of a small trust.

2. ANALYSIS OF TOTAL RESOURCES EXPENDED

				2005	2004
	Staff costs £	Other costs £	Depreciation £	Total £	Total £
Charitable expenditure:
Grants payable	-	13,236	-	13,236	15,037
Childcare activities	-	54,119	-	54,119	76,308
Support costs	126,914	29,779	5,470	162,163	167,899
Management and administration	52,718	15,882	1,313	69,913	72,446

	179,632	113,016	6,783	299,431	331,690

Costs of generating funds:
Fund raising and publicity	15,620	3,970	511	20,101	20,808

Total resources expended	195,252	116,986	7,294	319,532	352,498

Staff costs:
Wages and salaries				173,595	177,506
Social security costs				19,206	19,318
Training costs				2,451	1,958

				195,252	198,782

Other costs:
Grants payable				13,236	15,037
Childcare activities				54,119	76,308
Rent and rates				14,522	18,661
Light and heat				2,035	1,890
Insurance				2,660	1,927
Repairs, maintenance and cleaning				3,613	4,141
Printing and stationery				7,962	11,142
Telephone and postage				5,918	6,593
Publications and subscriptions				672	739
Travel and entertaining				1,937	3,235
Audit fee				1,100	1,150
Relocation costs				3,110	-
Advertising				1,780	-
Miscellaneous				4,322	4,439

				116,986	145,262

Average number of employees during the year: 5 (2004: 6).

None of the Trustees received any emoluments or reimbursements for expenses during the year (2004: £Nil).

None of the employees earned in excess of £50,000 in the year (2004: None in excess of £50,000).

During the year an insurance premium of £294 was incurred by the Trust in respect of Trustees’ and officers liability (2004: £473).

3. TANGIBLE FIXED ASSETS

	Office equipment £	Furniture fixtures and fittings £	Total £
Cost
At 1 January 2004	47,288	10,178	57,466
Additions	679	355	1,034

At 31 December 2005	47,967	10,533	58,500

Depreciation
At 1 January 2004	34,693	4,187	38,880
Charge for year	6,695	599	7,294

At 31 December 2005	41,388	4,786	46,174

Net book values
At 31 December 2005	6,579	5,747	12,326

At 31 December 2004	12,595	5,991	18,586

4. LOANS

The loan to ‘The Kids’ Club’ of Nil (2004: £2,833) was interest free, unsecured and repayable in equal instalments over a three year period.

The loan to The Spring Trust of £2,250 (2004: £5,250) is interest free and unsecured, and repayable over a five year period. The last repayment will be made in October 2006.

5. CHILDCARE DISCOUNT SCHEME

The Trust administers the Childcare Discount Scheme on behalf of the States of Jersey Employment and Social Security Committee, and the bank balances held on behalf of that Committee and the related liability at 31 December 2005 and 2004 are reflected in current assets and creditors in the balance sheet.

6. TAXATION

The income of the Trust is exempt from income tax under Article 115 (a) of the Income Tax (Jersey) Law 1961.

7. OPERATING LEASE COMMITMENTS

At the year end, the Trust was committed to make the following payment during the next year in respect of operating leases:

	2005 £	2004 £
Leases which expire
After five years	-	18,000

8. CONTROLLING AND ULTIMATE CONTROLLING PARTY

In the opinion of the Trustees, they are the controlling and ultimate controlling party of the Trust. There have been no related party transactions during the current or prior years.