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2022-08-31-accounts

Charity registration number 1018543

OUR LADY'S FIRST STEPS PRE SCHOOL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

OUR LADY'S FIRST STEPS PRE SCHOOL

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A Rowlands
M Gaskin
P Whimperley
A Gibson
S Mellor
T Owens
S Percival
H Whitfield
Charity number 1018543
Principal address Clinton View
Widnes
Cheshire
WA8 8JN
Independent examiner Mitchell Charlesworth
Glebe Business Park
Lunts Heath Road
Widnes
Cheshire
WA8 5SQ
Bankers Yorkshire Bank plc
20 Albert Road
Widnes
Cheshire
WA8 6JG

OUR LADY'S FIRST STEPS PRE SCHOOL

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Statement of cash flows 6
Notes to the financial statements 7 - 13

OUR LADY'S FIRST STEPS PRE SCHOOL

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2022

The trustees present their annual report and financial statements for the year ended 31 August 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Charities Act 2011 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) (effective 1 January 2019)".

Objectives and activities

The charity's objects are to enhance the development and education of children primarily under statutory school aged by encouraging parents to understand and provide for the needs of their children through community groups and by; (A) Offering appropriate play, education and care facilities, family learning and extended hours groups, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability. (B) Encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs in the local areas. (C) Instigating and adhering to and furthering the aims and objects of the pre-school learning alliance. There has been no change in these during the year.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The committee, staff and parents were all thanked for their ongoing support. Pat Whimperley, Elaine Gaskin and Ann Gibson were declared as officers and will continue in their roles as stated above. Megan Bird was welcomed as a new parent representative, replacing Natalie Thomas.

Anne gave information to all present regarding the new Early Years Frame Work and the changes that have been made to the Ofsted inspection process. Staff will also be informed about the changes and how they can ensure they are meeting the new requirements.

Future training needs were also discussed and a budget agreed.

It was agreed by all staff that the improvements to the outdoor play areas have been a huge success and children are enjoying getting outside more. Staff explained how the areas have enhanced the planning and improved outcomes for children.

Financial review

All present were given a copy of the annual financial report. Tracey went through the details in the report in more detail, she was extremely pleased that after having been overdrawn by over £23,000.00 at the end of the previous year, the nursery has finished this financial year with a positive bank balance of almost £20,000.00.

Three members of staff left the setting during this year but all have been replaced, along with one member of staff taken on as an apprentice.

Although the nursery is in a better financial position than the previous year, it will still not be possible to do some remedial work that needs to be done to the bathrooms etc. as we need to keep a large amount of funds in the bank to cover the intended minimum wage rise which is rumored to be an increase of over just 10% in April 2023 and we have still not been sent any school meals bills from Halton Borough Council since March 2022. These bills average at least £1,000.00 per week and contract has been made with many members from school meals asking for bills to be sent but these have still not come to us. Tracey has advised that we should look into finishing our contract with Halton Borough Council and look into employing our own qualified cook. She thinks that in the long term, this will be more beneficial and cost effective for the nursery.

OUR LADY'S FIRST STEPS PRE SCHOOL

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Risk policy

The trustees 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.

Plans for future periods

Continue to improve the nursery environment inside and outside. Ensure all staff continue to develop their skills by providing in-house training. To provide work shops for parents to attend alongside staff.

Structure, governance and management

The charity is registered in England and Wales under a Constitution adopted on 14 January 1993 as amended on 1 December 1999 and by a scheme of amendment on 1 March 2017.

Trustees

The trustees who served during the year and up to the date of signature of the financial statements were:

A Rowlands M Gaskin P Whimperley A Gibson S Mellor T Owens S Percival H Whitfield

Chairperson's closing report

Pat thanked all staff including the management team; Anne, Shirley and Tracey for their commitment and hard work ensuring that the children's needs are met.

Pat will be standing down as chair person in the next 12 months. Pat and the management team have decided it is the ideal opportunity to put together a new committee who will bring new and different skills to the role, it has been a pleasure to be a part of this nursery family.

The trustees' report was approved by the Board of Trustees.

M Gaskin

Trustee

22 June 2023

OUR LADY'S FIRST STEPS PRE SCHOOL

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF OUR LADY'S FIRST STEPS PRE SCHOOL

I report to the trustees on my examination of the financial statements of Our Lady's First Steps Pre school (the charity) for the year ended 31 August 2022.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of chartered, which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

P L Griffiths FCA DChA on behalf of Mitchell Charlesworth

Glebe Business Park Lunts Heath Road Widnes Cheshire WA8 5SQ

Dated: 22 June 2023

OUR LADY'S FIRST STEPS PRE SCHOOL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted Unrestricted
funds funds
2022 2021
Notes £ £
Income from:
Donations and legacies 2 1,709 23,144
Charitable activities 3 671,230 558,224
Total income 672,939 581,368
Expenditure on:
Charitable activities 4 644,442 626,318
Net income/(expenditure) for the year/
Net movement in funds 28,497 (44,950)
Fund balances at 1 September 2021 60,181 105,131
Fund balances at 31 August 2022 88,678 60,181

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

OUR LADY'S FIRST STEPS PRE SCHOOL

BALANCE SHEET

AS AT 31 AUGUST 2022

2022
Notes
£
Fixed assets
Tangible assets
8
Current assets
Debtors
9
13,607
Cash at bank and in hand
19,846
33,453
Creditors: amounts falling due within one
year
11
(11,980)
Net current assets/(liabilities)
Total assets less current liabilities
Income funds
Unrestricted funds		 2021
£
£
£
67,205
85,958
8,520
-
8,520
(34,297)
21,473
(25,777)
88,678
60,181
88,678
60,181
88,678
60,181

The financial statements were approved by the Trustees on 22 June 2023

M Gaskin

Trustee

OUR LADY'S FIRST STEPS PRE SCHOOL

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2022

Notes
Cash flows from operating activities
Cash generated from/(absorbed by) operations
13
Investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Relating to:
Cash at bank and in hand
Bank overdrafts included in creditors payable
within one year		 2022
£
£
44,254
(625)
(625)
-
43,629
(23,783)
19,846
19,846
-		 2021
£
£
(55,880)
(1,867)
(1,867)
-
(57,747)
33,964
(23,783)
-
(23,783)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

OUR LADY'S FIRST STEPS PRE SCHOOL

1 Accounting policies

Charity information

Our Ladys First Steps Pre School is a charity incorporated in England and Wales. The principal office is Clinton View, Widnes, Cheshire, WA8 8JN. The nature of the charity’s operations and principal activities are described in the Trustees’ Report on page 1.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution adopted on 14 January 1993 as amended on 1 December 1999 and by a scheme of variation dated 1 March 2017, the Charities Act 2011 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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

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.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

OUR LADY'S FIRST STEPS PRE SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

(Continued)

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.5 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Improvements to property 10% straight line
Fixtures and fittings 15% straight line
Computers 33.3% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.6 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

OUR LADY'S FIRST STEPS PRE SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Donations and legacies

Unrestricted Unrestricted
funds funds
2022 2021
£ £
CJRS grants receivable 1,709 23,144

OUR LADY'S FIRST STEPS PRE SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

3 Charitable activities

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Nursery fees 364,908 249,212
Milk reimbursement 1,934 1,263
Other income 2,333 916
Nursery funding 302,055 306,833
671,230 558,224

4 Charitable activities

Charitable Charitable
Expenditure Expenditure
2022 2021
£ £
Staff costs 538,987 522,896
Depreciation and impairment 19,378 19,081
Insurance and rates 3,265 3,259
Repairs and maintenance 3,170 5,299
Groceries 14,558 9,646
School meals 30,838 34,472
Consumables 11,696 9,491
Toys and equipment 2,549 3,216
Printing, stationery and postage 760 582
Sundry expenses 3,450 2,159
Accountancy - 126
Bank charges and interest 2,867 2,616
Utilities 6,110 4,885
Professional subscriptions 3,493 3,282
641,121 621,010
Share of support costs (see note 5) 777 688
Share of governance costs (see note 5) 2,544 4,620
644,442 626,318

OUR LADY'S FIRST STEPS PRE SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

5 Support costs

Support costs
Support costs
Governance
costs
£
£
Other office costs
777
-
Independent examination
fees
-
2,544
777
2,544
Analysed between
Charitable activities
777
2,544		 2022 Support costs
Governance
costs
£
£
£
777
688
-
2,544
-
4,620
3,321
688
4,620
3,321
688
4,620		 2021
£
688
4,620
5,308
5,308

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

There were no expenses reimbursed to trustees during the year.

7 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
Number
34
2022
£
506,519
26,243
6,225
538,987		 2021
Number
33
2021
£
490,955
26,001
5,940
522,896

There were no employees whose annual remuneration was more than £60,000.

OUR LADY'S FIRST STEPS PRE SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

8
Tangible fixed assets
Improvements to
property
Fixtures and
fittings
Computers
£
£
£
Cost
At 1 September 2021
7,603
117,329
5,161
Additions
-
625
-
At 31 August 2022
7,603
117,954
5,161
Depreciation and impairment
At 1 September 2021
-
40,358
3,777
Depreciation charged in the year
760
17,638
980
At 31 August 2022
760
57,996
4,757
Carrying amount
At 31 August 2022
6,843
59,958
404
At 31 August 2021
7,603
76,971
1,384
9
Debtors
2022
Amounts falling due within one year:
£
Trade debtors
13,607
10
Loans and overdrafts
2022
£
Bank overdrafts
-
Payable within one year
-		 Total
£
130,093
625
130,718
44,135
19,378
63,513
67,205
85,958
2021
£
8,520
2021
£
23,783
23,783

OUR LADY'S FIRST STEPS PRE SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

11 Creditors: amounts falling due within one year

Notes
Bank overdrafts
10
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2022
£
-
5,832
2,952
299
2,897
11,980		 2021
£
23,783
4,450
2,960
290
2,814
34,297

12 Related party transactions

There were no disclosable related party transactions during the year (2021 - none).

13
Cash generated from operations
Surplus/(deficit) for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in debtors
Increase/(decrease) in creditors
Cash generated from/(absorbed by) operations		 2022
2021
£
£
28,497
(44,950)
19,378
19,081
(5,087)
(8,082)
1,466
(21,929)
44,254
(55,880)

14 Analysis of changes in net funds/(debt)

The charity had no debt during the year.