**Registered in England Charity No. 1020275**
## **BIRCH HILL PRE-SCHOOL**
**TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2023**
## **BIRCH HILL PRE-SCHOOL**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|2|
|Independent examiner's report|4|
|Statement of financial activities|5|
|Balance sheet|6|
|Notes to the financial statements|7|
## **BIRCH HILL PRE-SCHOOL**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023**
The trustees present their report and financial statements for the year ended 31 August 2023.
## **Reference and administrative information**
**Registered charity name** Birch Hill Pre-School **Charity number** 1020275 **Date of registration** 20 November 1991 **Registered address** Birch Hill Recreation Ground Ringmead Bracknell RG12 7AQ **Trustees** Lara Mullett (Chair) Stacey Day (appointed 16 September 2022) Nick Mullett (appointed 16 September 2022) Rebecca Bradley (appointed 22 April 2024) Sasha Baughen (appointed 27 February 2024) Ian Keats (resigned 17 November 2023) Hana Karlasen (resigned 17 November 2023)
**Independent examiner** Price Bailey LLP Chartered Accountants Anglia House, 6 Central Avenue St Andrews Business Park Thorpe St Andrew Norwich NR7 0HR
## **BIRCH HILL PRE-SCHOOL TRUSTEES' REPORT**
## **FOR THE YEAR ENDED 31 AUGUST 2023**
## **Structure, governance and management**
The Charity is governed in line with its Constitution, dated November 2011. It is formed of the committee, which is made up of volunteer parents/carers of children currently attending.
The power of appointing new or additional Trustees is by the committee at the annual general meeting.
The Trustees hold an Annual General meeting once a year and hold a further 2 committee meetings throughout the year (termly). When new trustees are appointed they are given the below information/guidance:
- A code of conduct
- A committee Roles
- Early Years Alliance: Volunteering as a charity trustee mini guide
- Early Years Alliance: Safeguarding responsibilities of charity trustees mini guide.
## **Objectives and activities for the public benefit**
The object of the Charity is the provision of early years childcare and education (18 months – 5 years).
The Trustees confirm that they have referred to the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives.
## **Achievements and performance**
The charity continues to provide an excellent service for the local community for early years childcare and education for children aged 18 months to 5 years old. We provide education and care for all children mainstream and SEND children.
The Deputy manager was promoted and appointed Manager in December 2022, after the previous manager left in August 2022.
We have continued to replace resources throughout the preschool, always following the children’s interests, some of the resources we have been replacing are sensory toys, replenishing books and replacing outside toys.
We have created a pond in our nature corner, the children have enjoyed this very much and have learnt about the life cycles of insects and plants, we will continue to grow this area over the next few years.
Maintenance for the year was a repaint inside, replacement of lighting in the office, an inspection of the roof and an inspection of the air conditioning.
We have continued to do face-to-face meetings with parents and have invited them in for stay and play sessions We have continued to do handovers at the gate, as the children settle quicker and have longer to play outside.
Page 2
## **BIRCH HILL PRE-SCHOOL TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023**
## **Going concern**
Despite the challenges of a large increase in payroll, due to the minimum wage increase in April 2023 and another increase due in April 2024, Birch Hill Preschool will remain a going concern.
The preschool is at full capacity for the next financial year. The government will be rolling out a new funding entitlement for working parents alongside an increase in funding in April 2024.
The Trustee’s consider that the charity is financially stable as there is £155,655 in the reserve bank account as of 10 June 2024.
## **Principal risks and uncertainties**
The principal risks and uncertainties that the charity faces are:
- government funding increases are not in line with the minimum wage increases
- changing birthrates affects the number of children enrolling in the preschool
- families that pay for our services are facing more financial difficulties
- a recruitment crisis within the early years sector
## **Financial review**
Income in the year totalled £184,793 (2022: £150,518), expenditure was £182,926 (2022: £157,316). Closing funds totalled £164,178 (2022: £162,311) of which £nil (2022: £nil) is restricted.
## **Reserves policy**
The Trustees aim to maintain positive reserves of at least £40,000 in order to meet three months of wages and general overheads. This has been increased from prior years due to increased costs of running our own building such as business rates, utilities and insurance. All surplus funds are applied in furtherance of the Charity's objectives, and there are plans to invest further in the building and the resources we have using the additional reserves that are available to us.
This report was circulated to all the trustees and accepted unanimously on the
26 Jun 2024
…………………………………………
**Lara Mullett** Lara Mullett (Jun 26, 2024, 7:43pm)
(Chair)
Page 3
## **BIRCH HILL PRE-SCHOOL INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF BIRCH HILL PRE-SCHOOL FOR THE YEAR ENDED 31 AUGUST 2023**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2023 which are set out on pages 5 to 14.
## **Responsibilities and basis of report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material 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 Act; or
- 2 the accounts do not accord with those records; or
- 3 the accounts 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 accounts to be reached.
## **Suzanne Goldsmith FCA Price Bailey LLP, Chartered Accountants**
Anglia House, 6 Central Avenue St Andrews Business Park Thorpe St Andrew Norwich, Norfolk NR7 0HR
Date: 28 June 2024
Page 4
## **BIRCH HILL PRE-SCHOOL**
## **STATEMENT OF FINANCIAL ACTIVITIES AT 31 AUGUST 2023**
|**Notes**
**INCOME**
Income from charitable activities
2
Other income
3
**TOTAL INCOME**
**EXPENDITURE**
Expenditure on charitable activities:
4
**TOTAL EXPENDITURE**
**NET INCOME/(EXPENDITURE)**
**BEING NET MOVEMENT IN**
**FUNDS FOR THE YEAR**
Transfers
Total funds at 1 September
10
**TOTAL FUNDS 31 AUGUST**
10|**Unrestricted**
**Funds 2023**
**£**
29,861
-|**Restricted**
**Funds 2023**
**£**
153,913
1,019|**Total Funds**
**2023**
**£**
183,774
1,019|**Total Funds**
**2022**
**£**
150,255
263|
|---|---|---|---|---|
||29,861|154,932|184,793|150,518|
||(27,994)|(154,932)|(182,926)|(157,316)|
||(27,994)|(154,932)|(182,926)|(157,316)|
||1,867
-
162,311|-
-
-|1,867
-
162,311|(6,798)
-
169,109|
||164,178|-|164,178|162,311|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.
The notes on pages 7 to 14 form part of these financial statements.
Page 5
## **BIRCH HILL PRE-SCHOOL**
## **BALANCE SHEET AT 31 AUGUST 2023**
|**CURRENT ASSETS**
**Notes**
Debtors: Amounts due within
one year
7
Cash at bank and in hand
Creditors: Amounts due
within one year
8
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS**
**TOTAL LIABILITIES**
Unrestricted funds
10
Restricted funds
10
**TOTAL FUNDS**|**2023**
**£**
742
181,874
182,616
(18,438)
164,178
164,178
164,178
-
164,178|**2022**
**£**
511
193,506|
|---|---|---|
|||194,017
(31,706)|
|||162,311|
|||162,311|
|||162,311
-|
|||162,311|
26 Jun 2024
The financial statements were approved by the Trustees on and are signed on their behalf by:
……………………………… **Lara Mullett** Lara Mullett (Jun 26, 2024, 7:43pm) (Chair)
The notes on pages 7 to 14 form part of these financial statements.
Page 6
## **BIRCH HILL PRE-SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **1 ACCOUNTING POLICIES**
## **General information**
Birch Hill Pre-School is an unincorporated charity, registered in the United Kingdom under the Charities Act 2011. The registered office is Birch Hill Recreation Ground, Ringmead, Bracknell, RG12 7AQ.
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 £.
## **Basis of preparation**
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102) effective 1 January 2019), and the Charities Act 2011.
The financial statements have been prepared to give us a “true and fair” view and 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 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) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from April 2005 which has since been withdrawn.
Birch Hill Pre-School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The charity, being small in size, has used the exemption provided by Charities SORP (FRS 102) under which it is not required to include a cash flow statement as part of the financial statements.
## **Fund accounting**
Restricted income funds consist of grants awarded and fund raising received which are expended on costs directly attributable to the care and education of the children, the running of the preschool and those for which the fundraising was proposed.
Fees from parents are classified as being unrestricted income and any costs incurred on running the preschool over and above those allocated to restricted funds are then set off against unrestricted income.
Page 7
## **BIRCH HILL PRE-SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **1 ACCOUNTING POLICIES (continued)**
## **Going Concern**
Despite the challenges of a large increase in payroll, due to the minimum wage increase in April 2023 and another increase due in April 2024, Birch Hill Preschool will remain a going concern.
The preschool is at full capacity for the next financial year. The government will be rolling out a new funding entitlement for working parents alongside an increase in funding in April 2024.
The Trustee’s consider that the charity is financially stable as there is £155,655 in the reserve bank account as of 10 June 2024.
## **Income**
Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Government funding and grants are only included in the Statement of Financial Activities when the general income recognition criteria are met.
## **Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- expenditure on charitable activities includes that which relates directly to fulfilling the charitable objectives of the Charity, as outlined in the Trustees' Report.
Deferred income represents government grant funding received in the year in advance of the next school term.
Page 8
## **BIRCH HILL PRE-SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **1 ACCOUNTING POLICIES (continued)**
## **Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
Creditors are recognised when the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount.
## **Cash at bank and in hand**
Cash at bank and in hand includes cash held in bank accounts. There are no short term investments.
## **Financial instruments**
The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their at their fair value as at the balance sheet date. All financial instruments of the charity are measured at cost.
Financial assets include trade debtors and accrued income (but exclude prepayments).
Financial liabilities include trade creditors and accruals but exclude social security and other taxes due.
## **Pensions**
The Charity provides a defined contribution pension scheme, whereby the charity and its staff each fund the scheme, managed by a third party provider, the assets of which are held by the provider separately from the assets of the charity. The pension charge in the financial statements represents the amounts payable by the charity to the fund in respect of the period.
## **Corporation tax**
The Charity is exempt from taxation in respect of income and capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to the charitable purposes.
## **Judgements and key sources of estimation uncertainty**
In the application of the Charity's accounting policies, which are described above, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates.
The Trustees do not consider that there are any critical judgements or sources of estimation uncertainty in the financial statements.
Page 9
## **BIRCH HILL PRE-SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **2 CHARITABLE ACTIVITIES**
|**Unrestricted**
**2023**
**£**
Fees from parents
29,861
Government funding
-
29,861
**Unrestricted**
**2022**
**£**
Fees from parents
29,437
Government funding
-
29,437
**3**
**OTHER INCOME**
**Unrestricted**
**2023**
**£**
Fundraising
-
Government grants - Childcare Grant Payment Service
-
-
**Unrestricted**
**2022**
**£**
Fundraising
263
Government grants - Childcare Grant Payment Service
-
263|**Unrestricted**
**2023**
**£**
29,861
-|**Restricted**
**2023**
**£**
-
153,913|**Total**
**2023**
**£**
29,861
153,913|
|---|---|---|---|
||29,861|153,913|183,774|
||**Unrestricted**
**2022**
**£**
29,437
-|**Restricted**
**2022**
**£**
-
120,818|**Total**
**2022**
**£**
29,437
120,818|
||29,437|120,818|150,255|
|||**Restricted**
**2023**
**£**
-
1,019|**Total**
**2023**
**£**
-
1,019|
||-|1,019|1,019|
|||**Restricted**
**2022**
**£**
-
-|**Total**
**2022**
**£**
263
-|
||263|-|263|
Page 10
## **BIRCH HILL PRE-SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **4 EXPENDITURE ON CHARITABLE ACTIVITIES**
|Milk and snacks
Educational resources and equipment
Premises costs
Staff costs
Courses and training
Office running costs and equipment
Insurance and subscriptions
Other expenses
Legal and professional fees
Accountancy fees
Bad debts|**Total**
**2023**
**£**
1,503
8,087
18,783
141,509
950
1,275
3,534
585
3,040
3,660
-
182,926|**Total**
**2022**
**£**
1,025
4,761
9,680
129,048
2,159
814
3,194
86
2,611
3,480
458|
|---|---|---|
|||157,316|
In 2023, of the £182,926 of total expenditure, £27,994 (2022: £10,382) related to unrestricted funding, and £154,932 (2022: £146,934) related to restricted funding.
## **5 STAFF COSTS**
|**STAFF COSTS**|||
|---|---|---|
|Staff costs were as follows:
Wages and salaries
Employer NIC
Pension costs
The average number of employees during the year was as follows:
Employees|**2023**
**£**
138,811
752
1,946
141,509
**2023**
**No.**
11|**2022**
**£**
125,299
1,920
1,829|
|||129,048|
|||**2022**
**No.**
10|
The Charity considers that the Key Management Personnel comprise of the Manager and the Deputy Manager of the Pre-School. Employee benefits of Key Management Personnel were £43,170. There were no Key Management Personnel in 2022. No members of staff employed in the year earned over £60,000 (2022: Nil).
## **6 INDEPENDENT EXAMINER'S REMUNERATION**
|Independent examination fees
Fees payable to the Charity's Independent Examiner in respect of
other services|**2023**
**£**
1,960
1,700
3,660|**2022**
**£**
1,860
1,620|
|---|---|---|
|||3,480|
Page 11
## **BIRCH HILL PRE-SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **7 DEBTORS**
|Trade debtors
Other debtors
Prepayments
**8**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Accruals
Deferred income
**9**
**DEFERRED INCOME**
Deferred income brought forward
Resources deferred during the year
Amounts released from previous years|**2023**
**£**
-
742
-
742
**2023**
**£**
5,172
13,266
18,438
**2023**
**£**
25,154
13,266
(25,154)
13,266|**2022**
**£**
224
-
287|
|---|---|---|
|||511|
|||**2022**
**£**
6,552
25,154|
|||31,706|
|||**2022**
**£**
22,118
25,154
(22,118)|
|||25,154|
Deferred income represents government grant funding received in the year in advance of the next school term.
Page 12
## **BIRCH HILL PRE-SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
|**10**|**STATEMENT OF FUNDS**
**2023**
**Brought**
**forward**
**£**
**UNRESTRICTED FUNDS**
General funds
162,311
**RESTRICTED FUNDS**
Bracknell Forest Council
-
Childcare Grant Payment Service
-
-
**Total**
162,311
**2022**
**Brought**
**forward**
**£**
**UNRESTRICTED FUNDS**
General funds
142,993
**RESTRICTED FUNDS**
Bracknell Forest Council
26,116
26,116
Total
169,109|**Income**
**£**
29,861
153,913
1,019
154,932
184,793
**Income**
**£**
29,700
120,818
120,818
150,518|**Expenditure**
**£**
(27,994)
(153,913)
(1,019)
(154,932)
(182,926)
**Expenditure**
**£**
(10,382)
(146,934)
(146,934)
(157,316)|**Transfers**
**£**
-
-
-
-
-
**Transfers**
**£**
-
-
-
-|**Carried**
**forward**
**£**
164,178|
|---|---|---|---|---|---|
||||||-
-|
||||||-|
|||||||
||||||164,178|
||||||**Carried**
**forward**
**£**
162,311|
||||||-|
||||||-|
|||||||
||||||162,311|
## **RESTRICTED FUNDS DETAIL**
Bracknell Forest Council fund represents government funding used for the children's fees and day to day running costs of the Pre-School.
Childcare Grant Payment Service represents funding offered to parents who are training to become a teacher or for the NHS to support parents getting back to work.
## **UNRESTRICTED FUNDS DETAIL**
The unrestricted funds are available to be spent for any of the purposes of the charity.
Page 13
## **BIRCH HILL PRE-SCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **11 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Current assets
Creditors due within one year
Current assets
Creditors due within one year|**Unrestricted**
**Funds**
**2023**
**£**
169,350
(5,172)
164,178
**Unrestricted**
**Funds**
**2022**
**£**
168,863
(6,552)
162,311|**Restricted**
**Funds**
**2023**
**£**
13,266
(13,266)
-
**Restricted**
**Funds**
**2022**
**£**
25,154
(25,154)
-|**Total**
**Funds**
**2023**
**£**
182,616
(18,438)|
|---|---|---|---|
||||164,178|
||||**Total**
**Funds**
**20212**
**£**
194,017
(31,706)|
||||162,311|
## **12 PENSION COMMITMENTS**
The charity operates a defined contribution pension scheme. The assets of the schemes are held separately from those of the charity in independently administered funds. The total pension cost charge represents contributions payable by the charity to the funds and amounted to £1,946 (2022: £1,829). There were no pension committments are outstanding at year end (2022: £nil).
## **13 RELATED PARTIES**
In their roles as Trustees, the Trustees give their time and expertise freely without any form of remuneration or other benefit in cash or kind and did not claim any expenses.
There were no other related party transactions (2022: none).
Page 14