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2020-08-31-accounts

Royal Eltham Preschool Annual General Meeting

Date: 23.06.21

Present: Ruth Noble, Laura Hart, Anita Sheen, Ellen Millar, Emma Weir, Sophie Killick

Online: Linda Bigwood

Liz Oglesey, Mathew Stillwell

Minutes: Ruth Noble

Agenda Item Action by
1 Apologies and
welcome
No apologies
2 Minutes from
previous AGM
Nothing to change from previous AGM.
3 Matters Arrising None
4 Chairperson
Report

The Covid-19 pandemic hit March 2020

Staff made a huge effort to support a
single child who needed a space during
lockdown

The staff did a fantastic job at creating
zones in the preschool

We sadly said goodbye to Nicky

We weren’t able to do the usual
fundraising but have adapted to new
ways (including Amazon wishlist)

Thank you to new parents who have
joined the committee

Thank you to those who have served and
will be leaving
AS
5 Supervisors
Report
Sept 19-Aug-2020

Sept 19 children started off a little lower
than usual – possibly due to Deansfield
School accepting 30 free hours

Numbers were up shortly before Covid

Covid hit

Preschool remained open for 1 child with
Key Worker parents

Preschool adapted; staff working part
time hours

June -16 children returned, split into 2
bubbles

Greenwich Early Years and Early Years
Alliance both very helpful

Discussions around staff reducing hours
due to low numbers on the waiting list

Visits were unable to occur also

A thank you to Nicky for the service over
the last 10years
RM

Thank you to all staff who continued to
work throughout the pandemic. The
commitment they showed throughout
this has been outstanding.

We are hopeful that the coming year will
be better
6 Treasurers
Report
Preschool suffered a loss of £7,328
Driven by two factors:

Reduced children on role

Covid pandemic
Increased spend on screens and handwashing
stations. Additional rent was charged to the
preschool to accommodate the children of key
workers. Pandemic also prevented preschool
enrolling more children in the summer term. It
has also impacted the ability to promote the
preschool to parents.
Preschool committee were not able to meet face
to face during Covid and Treasurers report was
sent over email.
Staff numbers should be monitored carefully
against number of children on role.
A new website is to be developed to help
publicise the preschool.
Congratulations on 50 years Royal Eltham
Preschool.
LH
7 Election of
officers
Chairperson: Anita Sheen (staying on) elected by
Sophie Killick 2ndby Ellen Millar
Treasurer: Sophie Killick elected; 1stAnita Sheen,
2ndLaura Hart.
Secretary: Ellen Millar elected: 1stAnita Sheen,
2ndLaura Hart.
Trustees: Roz Metaxas and Jane Guest elected by
Anita Sheen
2nded by Laura Hart
Ellen and
Sophie will
need to be
registered
with Ofsted
(DBS check).
Laura Hart to
write to
HMRC
charities to
inform them
that there has
been an
officer
change.
Potentially
another mum
wanted to
join the
committee.
8 AOB Preschool turns 50 this year
Due to the pandemic there will be a small
celebration in the preschool for the attending
children.
9 Next Meeting The 2021 AGM will be October 21 JG

Royal Eltham Pre-School Finance Report 12 months to 31 August 2020

1) Notes to 2019/20 Accounts

a) Creditors
ii] Parents fees Paid in advance
b) Debtors
i) Payroll Service
ii) Parent Fees Outstanding
2) Details of Accounts– Income
Income from Fundraising
Christmas Raffle
Easter Egg Raffle
Easy Fundraising
Raffle
Donation
Other income
Course Fee Contribution
Photography commission/keyring
Godstone Farm_(offset with expenditure below 18/19)_
Safeguard course contribution
Dear Zoo
Ugly Duckling
Other
3) Details of Accounts – Expenditure
Other expenditure
Staff Christmas Party
Living Eggs
Ugly Duckling
Dear Zoo
Handyman Works
Godstone Farm Trip
Other
2019/20
2018/19
(320)
3,058
2,683
361
3,419
2,683
2019/20
2018/19
100
70
0
88
231
126
190
0
521
284
320
652
841
936
0
100
0
26
0
0
0
0
0
0
0
0
614
0
614
126
2019/20
2018/19
210
320
0
336
0
0
0
0
0
0
0
164
0
0
210
820

Royal Eltham Pre-School Finance Report 12 months to 31 August 2020

Summary of Income and Expenditure
Income
Parent fee
Deposit
LBG Free Places
Grants
Income from fundraising
Interest
Other
Expenditure
Premises
Wages
Equipment
Insurance
Consumables
Admin
Petty Cash (split into spend categories from 18/19)
Other
Net Surplus /(Loss)
2019/20
2018/19
11,413
12,106
0
320
99,165
111,738
0
0
945
936
0
0
614
126
112,137
125,226
9,940
9,345
101,834
97,014
1,731
4,153
1,208
1,193
1,399
1,528
2,764
4,236
588
820
119,465
118,289
(7,328)
6,938

4) Summary of Income and Expenditure

Royal Eltham Pre-School Finance Report 12 months to 31 August 2020

5) Capital Account for the Year
Opening Balance
Income
Expenditure
Represented by:
Bank Current Account Lloyds TSB 9060
Bank Current Account Lloyds TSB 9468 (Fundraising)
Bank Current Account Coop
Cash in hand
Debtors
Creditors
2019/20
84,163
112,137
(119,465)
76,835
71,906
1,257
615
3,058
0
76,836
2018/19
77,226
125,226
(118,289)
84,163
79,260
1,256
480
804
2,683
84,163

Royal Eltham Pre School 2019/20

25[th] November 2020

Note to the Accounts 2019/20

I have audited the balance sheet of the Royal Eltham Pre School and the associated income and expenditure reports

I have carried out a number of checks in reviewing these accounts including

It is in my opinion that these financial statements have been produced using generally accepted accounting principles.

Observations

A few observations for 19/20.

The Preschool have suffered losses in year totalling c. £7.3k, this is primarily driven by a reduction in income of £13k in year compared to 18/19. This represents a reduction of c.10%.

----- Start of picture text -----
REPS - Income and Expenditure
150
100
50
0
2015/16 2016/17 2017/18 2018/19 2019/20
(50)
Income Expenditure Net Surplus / Loss
£000
----- End of picture text -----

The primary driver to the reduced levels of income are a reflection of reduced funding by London Borough of Greenwich (further details below).

The preschool accounts remain in a healthy position, the cash reserves of c.£73k provides sufficient cover should there be any delay in cash flow. Effectively the reserves available would cover c.7 months’ worth of expenditure.

In year a loss of £7,328 was reported

Income

Parent Fees remained consistent with the level noted in 18/19. LBG funding reduced from £112k down to £99k in year due to a reduction in demand for places, this was due to a couple of factors

Overall income for child places has reduced by c.£12k (this represents an reduction of c.11%).

Other Income also remained constant with the levels noted in 18/19 and reflected donations of £391 and fundraising of £555.

Expenditure

Wages have risen by 5% in year. Premises costs increased by £595 in year (6.4%) this was due to additional opening in June for children of key workers.

Balance Sheet Adjustments

The pre-school have closed the account held with the Co-op in year transferring the balance to the main Lloyds current account.

Debtors show a balance of £3,058 for the payroll company, this reflects a small increase from 18/19 and a buffer of payroll costs equivalent to c.2-3 weeks.

Recommendation

There is concern at the level of loss in year though it would appear that this is primarily driven by the impact of COVID on LBG income but also the reduced demand. It is recommended that the level of demand is monitored on a regular basis in the coming year to ensure sufficient income is being generated to cover the current level of spend (c.£119k per year or c.£10k per month). Work has been ongoing to ensure staffing levels are reflective of the number of children attending and it is likely that this will need to continue.

If the reported position continues into 20/21 then further actions may be required to achieve a balanced position.

Simon Hooton, FCMA, CGMA