Jersey Childcare Trust: Trustees’ Report and Financial Statement at 31st December 2010

STATES OF JERSEY

JERSEY CHILDCARE TRUST: TRUSTEES' REPORT AND FINANCIAL STATEMENT AT 31ST DECEMBER 2010

Presented to the States on 21st October 2011 by the Minister for Education, Sport and Culture

STATES GREFFE

2011   Price code: C  R.125

CONTENTS

Page TRUSTEES' REPORT........................................................................................  4

STATEMENT OF TRUSTEES' RESPONSIBILITIES.....................................  10 INDEPENDENT AUDITOR'S REPORT...........................................................  11 STATEMENT OF FINANCIAL ACTIVITIES..................................................  12 BALANCE SHEET.............................................................................................  13 NOTES TO THE FINANCIAL STATEMENTS................................................  14

TRUSTEES

G.C. Powell, C.B.E. I.M. Le Feuvre, M.B.E. P. Wojciechowski C. Myers S.A. Blackmore R. Pedley L. MacKenzie J. Hairon T. Le Sueur M. Brown

(Chairman) ( Deputy Chair) (Treasurer) (Secretary)

CHILDCARE EXECTIVE DIRECTOR

F. Vacher

BANKERS

HSBC Bank 2 Hill Street St. Helier Jersey

JE4 8NJ

LEGAL ADVISERS

Crill Canavan 40 Don Street St. Helier Jersey

JE1 4XD

AUDITOR

Deloitte LLP

Lord Coutanche House 66–68 Esplanade

St. Helier

Jersey

JE4 8WA

ADDRESS

The Bridge Le Geyt Road St. Saviour Jersey

JE2 7NT

TRUSTEES' REPORT

The Trustees are pleased to present their report along with the financial statements of the Jersey Child Care Trust ("the Trust") for the year ended 31st December 2010.

The  financial  statements  have  been  prepared  in  accordance  with  the  accounting policies set out on page 14, and comply with the Trust Deed.

Constitution and objectives

The Trust was established under a Trust Deed by the States of Jersey on 5th December 1997 and was incorporated as an Association under the Loi (1862) sur les teneures en fidéicommis et l'incorporation d'associations.

The Trust's charity number is 241.

The Trust's registration number on the Non-Profit Organizations (Jersey) Law 2008 register is NPO 0195.

Since its establishment in 1997, the Trust's aim, which has remained at the core of its work, has been to co-ordinate, promote and facilitate the expansion of high quality and affordable childcare in the Island. The objectives for the Trust are incorporated into its Constitution and remain at the core of its work.

These are to –

• Promote high standards of childcare.
• Monitor and seek to improve the accessibility and affordability of childcare facilities and services in the Island.
• Promote and encourage improvements in the status and conditions of service of childcare staff.
• Promote the training and development of staff in the childcare sector.
• Provide information and advice to parents, professionals and other interested parties.
• Co-ordinate childcare provision.
• Sponsor and support research into childcare needs.
• Provide support for childcare providers through grants and other forms of assistance.
• Encourage employers and service providers to develop family friendly work places and service facilities.
• Promote quality childcare and engage parents in this process.
• Attract funding to pump 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 3. The States (on the recommendation of the Minister for Education, Sport and Culture) appoints the chairperson, who is not a member of the States of Jersey. The Minister for Education, Sport and Culture nominates one trustee who can be a member of the States and that Department. The Ministers for Social Security and Health and Social Services nominate one trustee each, who cannot be members of the States. The Trustees, appointed as above, appoint no less than 5 independent Trustees from a list of persons nominated by, or agreed by, the Chairman. The Trustees serve for a period of 3 years.

The Trustees meet not less than 3 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 a grant from the Ministry for Education, Sport and Culture of £170,700 (2009: £170,700) for administration and core activities.

The Trustees were grateful to receive other grants and donations totalling £84,718 in 2010 (2009: £78,336). In addition to these funds, the Trust has also received certain donations in kind, including regular and dedicated voluntary help.

The total funds at the year-end, after transfer of the deficit for the year of £14,009 (2009: deficit £44,518), amounted to £134,418 (2009: £148,427). The remaining year- end  balance  will  be  called  upon  as  necessary  to  supplement  the  grant  from  the Ministry for Education, Sport and Culture and future private donations in order to support the on-going provision of the Trust's activities.

Staffing

At the end of 2010 the Trust employed 2.7 full-time equivalent (FTE) Trust staff (2009: 3.7 FTE Trust staff). The Special Needs Inclusion Project employed 12 Support Workers, offering a minimum of 2 hours of support a week up to a maximum of 20 hours a week, equating to 1.20 FTE staff funded by donations (2009: 18 Support Workers equating to 1.03 FTE staff funded by donations). In addition to a dedicated and professional Trust staff team and Support Workers, the Trust is very grateful to have also benefited from the generosity of volunteers who have freely given their time to help the Trust achieve its objectives.

The Executive Director was on maternity leave during January and February, and the Trust was extremely fortunate to be able to gain the services of Laurie Mackenzie, one of the Trustees, as acting Executive Director. The Trust is most grateful to Laurie for the support she provided.

Grant-making policy

The Trust invites applications for grants from the childcare sector in support of the Trust's main objectives of accessible, affordable, quality childcare for the children of Jersey.

The  Executive  and  Trust  Board  Committees,  advised  by  the  Executive  Director, considers all the applications according to the criteria laid out in the application form which is available to download from the Trust's website, www.jcct.org.je.

All successful applicants are required to sign a Memorandum of Agreement. They are also required to supply the Trust with a report of the project as detailed in the initial application. Each successful recipient, depending on the size and nature of the grant, is then either visited by a Trustee or member of Trust staff, or supplies photographs demonstrating the project or equipment being used by the children to ensure that proper use of the grant is made.

Reserves policy

The services provided by the Jersey Child Care Trust are dependent upon the annual grant, from the Ministry of Education, Sport and Culture, being supplemented by significant private donations and other financial support. This private support relies on the Trust's fund-raising efforts each year and is not a guaranteed source of income. Due to this, the Trustees have implemented a reserves policy that seeks to ensure that the Trust holds financial reserves sufficient to cover 6 months of Trust expenditure, or the expected annual private funding contribution to the Trust's income, whichever is greater. This ensures that, should there be a time when this private financial support is not forthcoming; the Trust will be able to continue to provide its services whilst seeking alternative funding.

Review of activities and future developments

The Trust continues to strive  to  make  a  difference  for  families in Jersey  and  in particular, working families. Its work is informed through the Trust's membership of the various multi-agency forums and partnerships, as well as through the direct access that it has with families on a daily basis.

In 2010 the Trust's activities included –

• 16  Quality Grants to childcare providers, totalling £23,826 (16 in 2009: £39,528).
• The  Special  Needs  Inclusion  Project,  which  facilitated  2,099 hours  of support, to 24 children (2009: 2,450 hours to 18 children) to enable them to access  mainstream  early  years  childcare  with  the  support  of  one-to-one Support  Workers.  This  Project  continues  to  receive  generous  charitable donations to fund its work, and in 2010 the 2 main sponsors were, almost equally, the staff and Partners of Ogier and the Buckingham Foundation.
• Support  for  44 vulnerable  children,  to  access  part-time  nursery  places (2009: 45) at a cost of £46,690 (2009: £46,832). Places were funded in private day nurseries and pre-schools for the 2 – 3 year-olds for up to 10 hours per

week. The Project worked in partnership with the referring agents (e.g. health visitors and parenting facilitators) to provide an incentive to parents to attend specific sessions/work designed to help parents make positive change within their families. The Association of Jersey Charities and an anonymous Trust funded this Project in 2010.

• Provision of 30 (2009: 36) Continuous Professional Development courses for those working in childcare and education. A nominal fee is applied for each  place to  fund  this  provision,  and  732 places were  provided  in  2010 (2009: 750). Trainers are recruited from a variety of professions, and the Trust is grateful to them all for sharing a wealth and breadth of knowledge to those working in childcare.
• Provision of the Childcare Information Service for parents and providers of childcare. The Trust received an average of 350 enquiries per month (2009; 230) by telephone, e-mail and in person. This significant increase in enquiries is perhaps partly due to its location within a busy and vibrant Bridge Centre; however, many callers hear about the Trust through word of mouth. In 2010, a newly  designed  website  was  launched  and  www.jcct.org.je  provides  a comprehensive childcare search for all forms of childcare, information on all of the Trust's Projects, as well as advertising job vacancies in childcare.
• Compilation of a list of 42 Approved Babysitters (2009: 41) who are police checked and referenced, to assist parents with a flexible form of childcare in the child's own home. The list is circulated to any enquiring parents and is on the Trust's website.
• Publication of the Annual Childcare Costs and Salary Survey. This data is used  by  parents,  childcare  providers  and  Income  Support  in  addition  to informing the work of the Trust.
• Provision of the Learning Library for the Island's registered and accredited childcare providers to freely borrow from the 53 different types of toys and resources available. The Trust handled 219 bookings in 2010 (2009: 207).
• Assistance to the sector on the retention of existing qualified staff through support  for  "(j)" Category  Housing  Applications.  The  childcare  sector currently has 2 staff (2009: 3) with "(j)" Category housing status.
• Accrediting 3 (2009: 10) nannies to the Nanny Accreditation Scheme to bring the total at the end of 2010 to 22 (2009: 19). The Scheme professionally recognises  qualified  nannies  who  meet  strict  quality  criteria  and  each Accredited Nanny is annually reviewed. As with all other forms of quality childcare, parents employing an Accredited Nanny can receive the relevant tax-breaks.
• The Trust provided 20 subsidised places on the Work with Parents Module from the City and Guilds Qualification for those working in early years and childcare. Dr. Cathy Hamer from the National Children's Bureau delivered this training, which provides a platform for attendees to consider applying for one  of  two  JCCT  annual  bursary  places  to  complete  the  qualification through The Bridge City and Guilds Approved Centre.

• Support for Nannies. The Trust funded 8 qualified nannies to attend the National Professional Nanny Conference in Caversham, Reading in 2009. The  Trust  also  provided  some  financial  and  other  support  to  a  group  of nannies to  establish  "Nanny  Tots",  a  weekly  group  for  nannies and  their charges to attend, play and share activities together.
• Provision of student placements with a year-long placement for a Foundation Degree in Childhood Studies student and for Trident students at secondary school.
• The Trust issues a biennial Newsletter covering the activities of the Trust, the childcare  sector  and  other  related  matters  considered  of  interest  to  those concerned with childcare.
• Working families in Jersey regularly share with the Trust the challenges that they face in balancing work and family life. Opportunities have been taken during 2010 to highlight the Island's lack of legislation surrounding maternity, paternity and adoption leave and the impact that this has on families, and in turn  upon  society  as  a  whole.  The  Trust  will  continue  to  work  with politicians  and  policy-makers  to  encourage  them  to  prioritise  the implementation of this vital legislation.
• Membership  of  the  Early  Years  and  Childcare  Partnership  (EYCP). Through its membership of the various multi-agency groups, the Trust has worked alongside others to design a Social Inclusion Self-Assessment Tool, conducted  research  around  training  and  skills  of  the  workforce  and  also parents' experiences in the pre- and post-natal period of their child's life. The Trust currently sits on the following groups within the EYCP –

Member of the full Early Years and Childcare Partnership;

Member of the Co-ordinating Team and Chairs Group;

Chair of the Social Inclusion' Working Group;

Chair of the Community Sub-Group for the Under-Threes Quality Framework;

Member of the Workforce and Training and Recruitment' Working Group.

• The  Trust  is  also  represented  on  various  other  bodies,  committees  and working groups, including –

Jersey  Child  Protection  Committee –  Procedures  and  Audit  Sub- Group;

The Bridge Operational and Strategic Boards;

The Parenting Strategy and its Communication Sub-Group;

Child Accident Prevention (Jersey);

Breastfeeding Working Group;

Standing Conference of Women's Organisations;

The Childhood Foundation Degree, Employer's Panel.

• The Trust participation in  local and relevant consultation  opportunities to ensure  the  working  family  agenda  is  considered  by  policy-makers.  These consultations included the Proposed Fiscal Policy Changes, the Children and Young People's Plan and the Health and Social Services Review by KPMG.
• Membership  of  Third  Sector  group  interested  in  progressing  the development of a Third Sector Forum. The Trust would benefit from joining a Forum  which  would  co-ordinate  and  support  its  members,  along  with providing a far easier means of communication for the Third Sector, internally as well as with the States and Private sectors. The Forum could provide a role of support within commonly shared issues such as fund-raising, research and governance.

The Trust is pleased to see the continuing States commitment to the funding of free nursery education. Now in its second year, parents are in a better position to make informed and planned decisions about the setting they would like for their child. The long-term benefits from this universal investment will be seen by society in many years to come, with these children having received the best possible start to their learning journeys.

The Trust welcomes the support that has been offered by Ministers, and in 2011 is looking forward with confidence to steps being taken to –

• Review and look to provide a more targeted Childcare Tax Relief for working parents of children aged from birth to the August before the child enters the Nursery Education Fund year (around 3 years of age).
• The States implementing maternity, paternity and flexible working legislation for working families in the Island.
• The States implementing a breastfeeding and expressing policy and facilities for States employees to lead the way with a best practice model.
• Explore,  with  the  Minister  for  Education,  Sport  and  Culture,  the  current exclusions  to  the  Day  Care  of  Children  (Jersey)  Law  2002  and  the implications of making amendments to address these exclusions.

Finally, a word of thanks to the Board of Trustees, the Executive Director (and the Acting Executive Director who covered for the Executive Director's maternity leave), and the staff of the Trust for their total commitment and endeavour, and for their overall much valued contribution to the work of the Trust throughout 2010.

By Order of the Trustees:

G.C. Powell C.B.E. (Chairman)  Date

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing the financial statements in accordance with the Trust Deed.

The Trust Deed requires the Trustees to prepare financial statements for each financial year. Under that Deed the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). The financial statements are required to give a true and fair view of the state of affairs of the Trust and of the profit or loss of the Trust for that year. In preparing these financial statements, the Trustees are required to –

• select suitable accounting policies and then apply them consistently;
• make judgments and estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed; and
• prepare  the  financial  statements  on  the  going  concern  basis  unless  it  is inappropriate to presume that the Trust will continue.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure  that  the  financial  statements  comply  with  the  Trust  Deed.  They  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 AUDITOR'S REPORT TO THE TRUSTEES OF THE JERSEY CHILDCARE TRUST

We have audited the financial statements of The Jersey Child Care Trust for the year ended 31 December 2010 which comprise the statement of financial activities, the balance sheet and the related notes 1 to 5. 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  Trustees,  as  a  body,  in  accordance  with  our engagement letter dated 14 July 2011. 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 auditor's 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 Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and auditor

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees 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 Trust's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and  non-financial  information  in  the  Trustees'  Report  to  identify  material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the Trust's affairs as at 31 December 2010 and of its net movement in funds for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been properly prepared in accordance with the Trust Deed.

Deloitte LLP Chartered Accountants St. Helier , Jersey.

STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 December 2010

2010  2009 Note  £  £

INCOMING RESOURCES  1

Donations  84,498  64,763 Activities in furtherance of the Trust objectives:

States of Jersey grant – General  170,700  170,700 Association of Jersey Charities  220  13,573 Deposit interest  433  115 Other income   5,598   11,696

TOTAL INCOMING RESOURCES  261,449  260,847 RESOURCES EXPENDED

Costs of generating funds:

Fundraising and publicity  14,464  15,577 Charitable expenditure

Grants payable  23,826  39,528 Childcare activities  70,836  70,494 Support costs  115,459  125,090 Management and administration  50,873  54,676

TOTAL RESOURCES EXPENDED  2  275,458  305,365 NET MOVEMENT IN FUNDS  (14,009)  (44,518)

Fund balances at 1 January  148,427  192,945 FUND BALANCES AT 31 DECEMBER  134,418  148,427

All activities are derived from continuing operations.

The notes on pages 14 to 17 form part of these financial statements.

There are no recognised gains or losses other than those included in the Statement of Financial Activities and therefore a statement of total recognised gains and losses has not been presented.

BALANCE SHEET

Year ended 31 December 2010

Note  2010  2009

£ £

FIXED ASSETS

Tangible assets  3   –   –

CURRENT ASSETS

Debtors  790  54 Short term deposits  127,890  141,039 Cash at bank and in hand  10,692   8,879 139,372  149,972

CREDITORS: amounts falling due within one year

Creditors and accruals  (4,954)  (1,545)  (4,954)  (1,545)

NET CURRENT ASSETS  134,418  148,427

TOTAL ASSETS LESS CURRENT  134,418  148,427

LIABILITIES

NET ASSETS  134,418  148,427 Represented by:

FUNDS

Unrestricted  98,314  90,215 Restricted – Special Needs Inclusion  10,961  11,380

Project

Restricted – Supported Places Scheme   25,143   46,832 134,418  148,427

The notes on pages 14 to 17 form part of these financial statements. These financial statements were approved by the Trustees on

Chairman  Treasurer

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2010

1. PRINCIPAL ACCOUNTING POLICIES

The accounts have been prepared in accordance with applicable accounting standards in  the  United  Kingdom  and  the  requirements  of  Accounting  and  Reporting  by Charities Statement of Recommended Practice (Revised 2005) (the "SORP") except for  the  presentation  of  restricted  and  unrestricted  activities  in  the  Statement  of Financial Activities and for recording the asset acquired from funds received from donation as an expense at the date of purchase.

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 received, although they may apply to more than one accounting period.

Grants receivable

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

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

Funds received to purchase fixed assets are recognised as income from donations and are subsequently recorded as expense at the date of purchase of the asset. This is not in accordance with SORP which states that the relevant fund should be reduced over the economic life of the asset in line with its depreciation.

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, which the Trust may use at its discretion, and restricted funds, which the Trust must use solely for the purpose of the particular Project for which the donation was given.

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 entity.

Going Concern

The financial statements, which should be read in conjunction with the Trustee's Report, are prepared on a going concern basis.

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2010

2. ANALYSIS OF TOTAL RESOURCES EXPENDED

2010  2009 Staff costs  Other costs  Total  Total

£ £  £  £

Charitable expenditure:

Grants payable  -  23,826  23,826  39,528 Childcare activities  -  70,836  70,836  70,494 Support costs  90,764  24,695  115,459  125,090 Management and administration   37,702   13,171   50,873   54,676 128,466  132,528  260,994  289,788

Costs of generating funds:

Fund-raising and publicity   11,171   3,293   14,464   15,577 Total resources expended  139,637  135,821  275,458  305,365

Staff costs:

Wages and salaries  130,991  133,193 Social security costs  7,887  8,628 Training costs   759   627 139,637  142,448

Other costs:

Grants payable  23,826  39,528 Childcare activities  70,836  70,494 Rent and rates  17,179  17,179 Insurance  3,309  2,817 Printing and stationery  4,224  4,181 Telephone and postage  1,480  2,745 Publications and subscriptions  573  656 Travel and entertaining  1,622  1,150 Audit fee  1,500  1,500 Advertising  821  500 Miscellaneous   10,451   17,088

Total  135,821  157,838

Average number of employees during the year: 2.7 FTE (2009: 3.7). One employee earned in excess of £50,000 in the year (2009: 1).

During the year an insurance premium of £1,746 was incurred by the Trust in respect of Trustees' and officers' liability (2009: £1,511).

NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2010

3. TANGIBLE FIXED ASSETS

Furniture

Office  fixtures and

equipment  fittings  Total

£ £  £

Cost

At 1 January 2010  –  11,590  11,590 Additions   –   –   –

At 31 December 2010   –  11,590  11,590

Depreciation

At 1 January 2010  –  11,590  11,590 Charge for year   –   –   –

At 31 December 2010   –  11,590  11,590

Net book values

At 31 December 2010   –   –   – At 31 December 2009   –   –   –

4. TAXATION

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

5. 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.