2020-07-31-accounts

CHARMINSTER PRE-SCHOOL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

Registered Charity No 1019866

Chartered Accountants

CHARMINSTER PRE-SCHOOL

CONTENTS

	Page
Reference and administrative details	1 - 2
Report of the trustees	3 - 5
Independent examiner's report to the trustees	6
Statement of financial activities	7
Balance sheet	8
Notes to the financial statements	9 - 10

CHARMINSTER PRE-SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS

Constitution

The charity was established by constitution dated 16 July 1992 (amended 6 November 2011) and its objects are to enhance the development and education of children under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups.

Charminster Pre-School is a community run pre-school accessible to children and families from all sections of the local community. We offer a friendly classroom environment where learning is encouraged through play, providing high quality care and education, working in partnership with parents and carers to help children learn and develop.

Charminster Pre-School registered as a charity on 22 April 1993 (No 1019866) and is governed by the constitution of the Pre-school Learning Alliance , which was most recently revised October 2008. It is managed by an elected committee of carers.

The committee of trustees serving during the year were as follows;

Committee/Trustees

Chairperson Jonathan Hancock (Appointed 10/12/17, Resigned 07/10/20) Emma Norman (Appointed 07/10/20) Vice Chairperson Laura Trowbridge (Appointed 02/10/19) Treasurer Michelle McNulty (Appointed 03/10/18, Resigned 02/10/19) Simon Pengelly (Appointed 02/10/19) Secretary Janine Sales (Appointed 03/10/18, Resigned 02/10/19) Linda Taylor (Appointed 02/10/19, Resigned 07/10/20) Jess Cutler (Appointed 07/10/20) Safeguarding Katie Boyes (Appointed 03/10/18, Resigned 02/10/19) Simon Munt (Appointed 02/10/19, Resigned 07/10/20) Louisa Swabey-Payne (Appointed 07/10/20) General committee members Sam Mercer (Resigned 31/10/20) Becky Hewish Samantha Daunton (Appointed 02/10/19, Resigned 07/10/20) Jodie Philpott (Appointed 02/10/19, Resigned 07/10/20) Karen Bennett (Appointed 02/10/19, Resigned 07/10/20) Rachel Shaw (Appointed 01/11/20) Katheryn Emery-Burns (Appointed 11/10/17, Resigned 02/10/19) Glenn Taylor (Appointed 03/10/18, Resigned 02/10/19) Sarah Harding (Appointed 03/10/18, Resigned 02/10/19) Sophie Sherry (Appointed 07/10/20) Kelly Rigler (Appointed 07/10/20, Resigned 03/03/21)

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CHARMINSTER PRE-SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS (CONTINUED)

Charity's principal office

West Hill Charminster Dorchester Dorset DT2 9RD

Independent Examiner

S J Hough FCA FCCA Messrs Edwards and Keeping Unity Chambers 34 High East Street Dorchester Dorset DT1 1HA

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CHARMINSTER PRE-SCHOOL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2020

The trustees present their annual report and financial statements of the Charity for the year ended 31 July 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed dated 16 July 1992 (amended 6 November 2011), 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 published in October 2019.

Objectives and activities for the public benefit

The pre-school was created to enhance the development and education of children under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups. It does this by providing a community run pre-school accessible to children and families from all sections of the local community. We offer a friendly classroom environment where learning is encouraged through play, providing high quality care and education, working in partnership with parents and carers to help children learn and develop.

Review of Activities and Achievements

During a time that was severely disrupted by the Covid-19 pandemic, the pre-school had a successful year. During the Autumn term the children were able to enjoy many new experiences alongside their learning and development, including a Christmas Craft morning, the nativity at the local church as well as their Winter party. The Spring term saw the trustees join the children to flip pancakes in the first half-term, however during the second half-term Government restrictions resulted in the closure of early-years care settings to all children except those of key workers. Arrangements were made to continue this service to key worker children, with an average of 4 attendees per day. This support was extended through the Easter holidays and Summer half-term period, folllowing which children from non-key worker families returned. Special arrangements were introduced to minimise the risk of virus transmission within the setting and children and staff split into two different 'bubble' groups. Due to the need to manage the risk of transmission, unfortunately additional activities, such as family trips and gardening club were unable to take place. Ultimately these extra measures were considered a success as no covid cases were recorded at the setting over the year. The preschool was able to run a limited 'Forest School' programme during the year in which children learnt how to build dens, create crafts with natural materials, hunt for bugs and toast bread and marshmallows over a camp fire.

The pre-school continued the use of the online learning journal, Tapestry, which enables carers to see what their children have been doing in the setting and monitor their development.

This year the committee raised funds to continue the maintenance and improvement of the settings provision, however the funds raised were significantly lower that previous years due to the restrictions on opportunities available for fundraising events as a result of Covid-19 measures. The money raised will be allocated to improvement projects over the course of the next financial year, including a kitchen upgrade and the installation of a learning support cabin.

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CHARMINSTER PRE-SCHOOL

REPORT OF THE TRUSTEES (CONTINUED)

Financial review

During the year the pre-school generated funding and fees of £160,687 (2019: £156,479) and incurred expenditure of £149,577 (2019 : £138,102), generating a surplus of £11,110 (2019: £18,377). At the year end, the pre-school had reserves of £91,531 (2019 : £80,421) of which £nil was held for restricted purposes (2019 : £nil).

The pre-school is predominantly funded through the EYSFF (Early years single funding formula) but also raises funds by applying for grants and fundraising events throughout the year.

Policy on Reserves

The trustees' aim is to maintain a sufficient level of reserves to enable it to carry out its charitable objectives for the foreseeable future. At the end of the year the reserves held totalled £91,531. The trustees propose to maintain the pre-school reserves at a level which is at least equivalent to three months operational expenditure and ideally nearer to six months operational expenditure. The building is likely to need replacement in the long term and reserves need to be accumulated for this purpose. The trustees intend to continue building reserves through fundraising events as detailed above.

Structure, governance and management

The trust is a charity, constituted under the constitution of the Pre-school learning alliance. It is a registered charity number 1019866. The charity is managed by an elected committee of carers which meets about eight times a year. Potential new trustees are invited to attend a committee meeting and are elected when there is a vacancy. The charity's formal positions (Chairperson, Treasurer and Secretary) are appointed annually at the annual general meeting in October. The quorum for committee meetings is half of the members. The Chairperson does not vote unless there is a split, at which point the Chairperson has the casting vote.

The charity employs a play leader (also qualified in special needs), a deputy play leader, 8 early years practitioners, a part time administrator and a part time accounts administrator. The setting also benefits from a voluntary helper.

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CHARMINSTER PRE-SCHOOL

REPORT OF THE TRUSTEES (CONTINUED)

Charity law requires the trustees to prepare statements of account for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources for that period. In preparing those financial statements, the trustees are required to:-

• Select suitable accounting policies and apply them consistently;

• Make judgements and estimates that are reasonable and prudent;

• Value assets and liabilities in accordance with the Statement of Recommended Practice Accounting by Charities;

• Prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation;

The trustees are responsible for keeping proper accounting records which are sufficient to show and explain the charity's transactions and to disclose with reasonable accuracy at any time the financial position of the Charity, and to enable them to ensure that any statement of account comply with the requirements of the Charity (Accounts and Reports) Regulations 2000. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Committee of Management on

and signed on its behalf by Simon Pengelly, Treasurer

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CHARMINSTER PRE-SCHOOL

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

I report on the accounts of the charity for the year ended 31 July 2020 which are set out on pages 7 to 10.

Respective responsibilities of trustees and examiner

The Charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to:

• examine the accounts under section 145 of the 2011 Act;

• follow the procedures laid down in the General Directions given by the Charity Commission under 145(5)(b) of the 2011 Act; and

• state whether particular matters have come to my attention.

Basis of independent examiner's report

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In the course of my examination, no matter has come to my attention;

• (1) which gives me reasonable cause to believe that in any material respect the requirements; to keep accounting records in accordance with section 130 of the Act or; to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met; or

• (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

S J Hough FCA FCCA Messrs Edwards and Keeping Unity Chambers 34 High East Street Dorchester Dorset DT1 1HA

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CHARMINSTER PRE-SCHOOL

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

	Unrestricted	Restricted	Restricted	Total	Total
	funds	funds		funds	funds
	2020	2020		2020	2019
	£		£	£	£
Income
Funding	110,245	-		110,245	116,022
Fees (including administration fees)	20,850	-		20,850	26,948
Grants	22,012	4,133		26,145	5,988
General fundraising	1,530	-		1,530	4,025
Donations	461	-		461	1,470
Children's uniforms	318	-		318	613
Forest School	945	-		945	-
Miscellaneous	47	-		47	1,357
Bank interest	146	-		146	56
Total income	156,554	4,133		160,687	156,479
Expenses
Wages	113,870	4,133		118,003	108,677
Pension contributions (including employee)	6,984	-		6,984	5,230
Maintenance	1,437	-		1,437	1,581
Cleaning	3,288	-		3,288	2,959
Utilities	3,763	-		3,763	4,143
Insurance	1,973	-		1,973	1,962
Toys and books	558	-		558	1,040
Materials for children	1,594			1,594	1,803
Subscriptions	1,253	-		1,253	636
Stationery	1,117	-		1,117	1,345
Provisions	780	-		780	1,230
Forest school expenses	17	-		17	1,026
Training	2,272	-		2,272	365
Furniture and equipment	3,412	-		3,412	3,584
Children's uniform	371	-		371	508
Staff uniform	306	-		306	249
Miscellaneous	502	-		502	167
Trips and special occasions	359	-		359	666
Payroll fees	706	-		706	620
Accountancy	170	-		170	78
Fund raising costs	712	-		712	233
Total expenses	145,444	4,133		149,577	138,102
Net surplus	11,110	-		11,110	18,377
Transfer between funds	-	-		-	-
Funds brought forward	80,421	-		80,421	62,045
Funds carried forward	91,531	-		91,531	80,421

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CHARMINSTER PRE-SCHOOL

BALANCE SHEET AS AT 31 JULY 2020

Current assets Cash at bank - Co-op current account Cash at bank - Co-op reserve account Petty cash Current assets less current liabilities Total assets Funds Unrestricted funds Restricted funds	£ 62,166 29,311 54	2020 £ £ 51,215 29,166 40 91,531 91,531 91,531 - 91,531	2019 £ 80,421
			80,421
			80,421 -
			80,421

The financial statements were approved by the board on

Signed on behalf of board of trustees

Simon Pengelly, Treasurer

• 8 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

CHARMINSTER PRE-SCHOOL

1 Accounting Policies

Basis of preparation

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the notes to these accounts. The financial statements have been prepared in accordance with the 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 (FRS102) (issued in October 2019) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The charity holds 6 months reserves and has set a prudent budget.

Income recognition

All incoming resources are recognised once the charity has received the resources.

Grants and donations are recognised when the funds are received into the charity's bank account.

Investment income

Interest on funds held on deposit is included when received.

Expenditure recognition

Liabilities are recognised as expenditure as soon as the funds have been issued.

All expenditure is accounted for on a receipts basis. All expenses are allocated or apportioned to the applicable expenditure headings.

Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Governance costs

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to external examinations.

Cost of generating funds

The costs of generating funds consists of expenditure incurred for fund raising events.

Cash and cash equivalents

Cash at bank and in hand consists entirely of cash balances held with the trust's bankers.

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CHARMINSTER PRE-SCHOOL

NOTES TO THE FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 JULY 2020

**2 **	Investment income			2020	2019
				£	£
	Deposit interest received			146	56
	All the investment income is attributable to unrestricted funds.
**3 **	Analysis of expenditure	Support and		2020	2019
		governance
	Activity		costs	Total	Total
			£	£	£
	Independent examiner		-	170	78
**4 **	Analysis of staff costs and the cost of key management personnel
				2020	2019
	Staff costs			£	£
	Gross wages, salaries and benefits in kind			119,540	110,100
	Employer's National Insurance costs			2,480	1,734
	Pension costs			2,967	2,446
				124,987	114,280
	Average number of employees (head count)			12	12

No employees had employee benefits in excess of £Nil (2019 : Nil).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2019 : Nil). Five trustees were reimbursed expenses totalling £246.75 during the year (2019 : Four trustees were reimbursed expenses totalling £501.39). No charity trustee received payment for professional or other services supplied to the charity (2019 : Nil).

The key management personnel of the charity comprise the trustees and the play leader.

The total employee benefits of the key management personnel of the charity was £27,624 (2019 : £27,302).

5 Analysis of charitable funds

Fund name Unrestricted funds Restricted funds Total funds	Fund Income Expenditure Fund Fund balances transfers balances brought carried forward forward £ £ £ £ £ 80,421 156,554 145,444 - 91,531 - 4,133 4,133 - -
	80,421 160,687 149,577 - 91,531

The restricted fund relates to a ring fenced grant.

The unrestricted funds are available to be spent for any purposes of the charity.

6 Related Party Transactions

There are no related party transactions that require disclosure.

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