Charity registration number 1018543
OUR LADY'S FIRST STEPS PRE SCHOOL
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
OUR LADY'S FIRST STEPS PRE SCHOOL
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | A Rowlands |
|---|---|
| M Gaskin | |
| P Whimperley | |
| A Gibson | |
| S Mellor | |
| T Owens | |
| A Rice | |
| E Egeland | |
| 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 |
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 2023
The trustees present their annual report and financial statements for the year ended 31 August 2023.
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. As at the year end the bank account is showing an overdrawn bank balance of £7,567. This is unfortunate as we started the year with a positive bank balance of £19,8456. Looking through the accounts and comparing with the previous year, there is little movement in incoming funds, outgoings have however increased.
The wage bill was £48,871 higher than the previous year, this is almost 10% higher than the previous year. This was expected due to the national wage increase in April 2023.
The nursery school meals bill was just over £26,500 higher than the previous years due to the council now sending regular bills after not receiving any bills for over 12 months. In June 2022, Halton Borough Council sent a backdated vat bill of over £21,000. Tracey is in communication/dispute with the council over this and is continuing to try and come to an amicable agreement over it as we have never been charged VAT on our school meals in over 15 years. It is imperative that we cut ties as soon as possible with Halton Borough Council school meals and employ our own kitchen staff and source our own food etc. This would potentially save the nursery thousands of pounds each year.
On a positive note, fees were increased in September 2023 and will have an impact on the amount of fees coming in each month. The amount of children on role is very similar to previous years and we have retained all staff members over the staff year.
- 1 -
OUR LADY'S FIRST STEPS PRE SCHOOL
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
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 A Rice E Egeland
Chairperson's closing report
Pat thanked all staff and the management team for continuing to be committed and working so hard to care for all of the children at the nursery.
It has been a pleasure for Pat to be involved with the Nursery from the early days as a 'mums and tots' group until now. The development and progression to being a full day care setting and preschool has been a bit of a rollercoaster at times, but the benefits that the nursery has brought to the local community and the many hundreds of children that have attended, has been truly wonderful. On behalf of myself and the committee, we hope that the new committee has as much pleasure of supporting the nursery as we have.
The trustees' report was approved by the Board of Trustees.
M Gaskin
Trustee
13 June 2024
- 2 -
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 2023.
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:
-
1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
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: 13 June 2024
- 3 -
OUR LADY'S FIRST STEPS PRE SCHOOL
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 2 | - | 1,709 |
| Charitable activities | 3 | 676,044 | 671,230 |
| Total income | 676,044 | 672,939 | |
| Expenditure on: | |||
| Charitable activities | 4 | 753,886 | 644,442 |
| Net (expenditure)/income for the year/ | |||
| Net movement in funds | (77,842) | 28,497 | |
| Fund balances at 1 September 2022 | 88,678 | 60,181 | |
| Fund balances at 31 August 2023 | 10,836 | 88,678 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
OUR LADY'S FIRST STEPS PRE SCHOOL
BALANCE SHEET
AS AT 31 AUGUST 2023
| 2023 2022 Notes £ £ £ Fixed assets Tangible assets 9 51,294 Current assets Debtors 10 12,570 13,607 Cash at bank and in hand - 19,846 12,570 33,453 Creditors: amounts falling due within one year 12 (53,028) (11,980) Net current (liabilities)/assets (40,458) Total assets less current liabilities 10,836 Income funds Unrestricted funds 10,836 10,836 |
£ 67,205 21,473 |
|---|---|
| 88,678 | |
| 88,678 | |
| 88,678 |
The financial statements were approved by the Trustees on 13 June 2024
M Gaskin
Trustee
- 5 -
OUR LADY'S FIRST STEPS PRE SCHOOL
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023
| Notes Cash flows from operating activities Cash (absorbed by)/generated from operations 14 Investing activities Purchase of tangible fixed assets Net cash used in investing activities Net cash used in financing activities Net (decrease)/increase 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 |
2023 £ £ (24,560) (2,853) (2,853) - (27,413) 19,846 (7,567) - (7,567) |
2022 £ £ 44,254 (625) (625) - 43,629 (23,783) 19,846 19,846 - |
|---|---|---|
- 6 -
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
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.
- 7 -
OUR LADY'S FIRST STEPS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
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.
- 8 -
OUR LADY'S FIRST STEPS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023
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
| Total | Unrestricted | |
|---|---|---|
| funds | ||
| 2023 | 2022 | |
| £ | £ | |
| CJRS grants receivable | - | 1,709 |
- 9 -
OUR LADY'S FIRST STEPS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
3 Charitable activities
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Nursery fees | 376,688 | 364,908 |
| Milk reimbursement | 2,355 | 1,934 |
| Other income | 3,833 | 2,333 |
| Nursery funding | 293,168 | 302,055 |
| 676,044 | 671,230 |
4 Charitable activities
| Charitable | Charitable | |
|---|---|---|
| Expenditure | Expenditure | |
| 2023 | 2022 | |
| £ | £ | |
| Staff costs | 600,004 | 538,987 |
| Depreciation and impairment | 18,764 | 19,378 |
| Insurance and rates | 3,728 | 3,265 |
| Repairs and maintenance | 3,647 | 3,170 |
| Groceries | 15,934 | 14,558 |
| School meals | 76,408 | 30,838 |
| Consumables | 10,932 | 11,696 |
| Toys and equipment | 3,116 | 2,549 |
| Printing, stationery and postage | 1,124 | 760 |
| Sundry expenses | 4,047 | 3,450 |
| Bank charges and interest | 1,486 | 2,867 |
| Utilities | 7,296 | 6,110 |
| Professional subscriptions | 3,600 | 3,493 |
| 750,086 | 641,121 | |
| Share of support costs (see note 5) | 938 | 777 |
| Share of governance costs (see note 5) | 2,862 | 2,544 |
| 753,886 | 644,442 |
- 10 -
OUR LADY'S FIRST STEPS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
5 Support costs
| Support costs | ||
|---|---|---|
| Support costs Governance costs £ £ Other office costs 938 - Independent examination fees - 2,862 938 2,862 Analysed between Charitable activities 938 2,862 |
2023 Support costs Governance costs £ £ £ 938 777 - 2,862 - 2,544 3,800 777 2,544 3,800 777 2,544 |
2022 £ 777 2,544 |
| 3,321 | ||
| 3,321 |
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 |
2023 Number 33 2023 £ 560,521 31,948 7,535 600,004 |
2022 Number 34 |
|---|---|---|
| 2022 £ 506,519 26,243 6,225 |
||
| 538,987 |
There were no employees whose annual remuneration was more than £60,000.
8 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
- 11 -
OUR LADY'S FIRST STEPS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
| 9 Tangible fixed assets Improvements to property Fixtures and fittings Computers £ £ £ Cost At 1 September 2022 7,603 117,954 5,161 Additions - 2,853 - At 31 August 2023 7,603 120,807 5,161 Depreciation and impairment At 1 September 2022 760 57,996 4,757 Depreciation charged in the year 760 17,764 240 At 31 August 2023 1,520 75,760 4,997 Carrying amount At 31 August 2023 6,083 45,047 164 At 31 August 2022 6,843 59,958 404 10 Debtors 2023 Amounts falling due within one year: £ Trade debtors 12,570 11 Loans and overdrafts 2023 £ Bank overdrafts 7,567 Payable within one year 7,567 |
Total £ 130,718 2,853 |
|---|---|
| 133,571 | |
| 63,513 18,764 |
|
| 82,277 | |
| 51,294 | |
| 67,205 | |
| 2022 £ 13,607 |
|
| 2022 £ - |
|
| - |
- 12 -
OUR LADY'S FIRST STEPS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
12 Creditors: amounts falling due within one year
| Notes Bank overdrafts 11 Other taxation and social security Trade creditors Other creditors Accruals and deferred income |
2023 £ 7,567 7,765 4,204 30,249 3,243 53,028 |
2022 £ - 5,832 2,952 299 2,897 |
|---|---|---|
| 11,980 |
13 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
14 Cash generated from operations
| Cash generated from operations 2023 £ (Deficit)/surpus for the year (77,842) Adjustments for: Depreciation and impairment of tangible fixed assets 18,764 Movements in working capital: Decrease/(increase) in debtors 1,037 Increase in creditors 33,481 Cash (absorbed by)/generated from operations (24,560) |
2022 £ 28,497 19,378 (5,087) 1,466 |
|---|---|
| 44,254 |
15 Analysis of changes in net debt
The charity had no debt during the year.
- 13 -