**REGISTERED CHARITY NUMBER: 1028855**
## **TRUSTEES' REPORT AND**
**UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **FOR**
**PIPPIN PLAYGROUP**
**PIPPIN PLAYGROUP**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
||**Page**|
|---|---|
|**Trustees' Report**|1 to 4|
|**Independent Examiner's Report**|5|
|**Statement of Financial Activities**|6|
|**Balance Sheet**|7|
|**Cash Flow Statement**|8|
|**Notes to the Cash Flow Statement**|9|
|**Notes to the Financial Statements**|10 to 16|
|**Detailed Statement of Financial Activities**|17 to 18|
**PIPPIN PLAYGROUP**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021**
The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of 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**
## **Objectives and aims**
Pippin Playgroup's aims are to provide a safe, secure, nurturing environment for children aged 2 - 4 years old. We offer wraparound care which includes a breakfast club, lunch club, after-school club and holiday club. The wraparound sessions are for children aged 2 - 9 years old.
The pre-school is run by a committee and is a community based group, with the aim to include parents in all aspects of running the group.
We aim to provide affordable childcare by keeping the session fees as low as possible whilst covering running costs.
The staff team are committed to ensuring that all the children attending Pippin Playgroup are given the opportunity to learn and develop, accessing a varied curriculum of activities from the Early Years Foundation Stage guidance and encouraging them to learn and to reach their full potential.
We have staff qualified to support children with special educational needs and speech and language difficulties.
We support the children in learning about healthy eating and physical exercise by planning activities to promote them within our curriculum.
## **Public benefit**
The trustees have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charity Commission.
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities, and in particular, the specific guidance on charities for the advancement of education.
The main beneficiaries of Pippin Playgroup are the children attending the pre-school from the local area who receive a high standard level of care from a charity with a low turnover of staff and a very high level knowledge of the Early Years Foundation Stage Framework and hold all the relevant qualifications to ensure inclusive practise of high quality childcare.
Parents benefit from their children receiving affordable childcare that promotes independence, resilience and self-esteem.
Pippin Playgroup currently provide pre-school places for 87 children, and wrap-around care for 155 children.
Page 1
## **PIPPIN PLAYGROUP**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021**
## **ACHIEVEMENT AND PERFORMANCE**
## **Achievement and performance**
Pippin has supported more members of staff this year to embark on qualifications to enhance their professional and personal development. The qualifications completed this year have been two level 2, two level 3 and one level 4 in childcare. We currently have 1 member of staff working towards their level 3 qualification in childcare and 1 working towards level 5 as a senior practitioner.
COVID-19 has had a big effect on Pippin this year, due to the pandemic for the first time ever since Pippin was established we had to close our services in March 2020. This decision was made in line with government guidance, the restrictions placed on building space and staff welfare. We were very happy to be able to open again on the 1st June 2020, although this was for pre-school children only in accordance with the government guidance. We were not able to offer our wraparound care sessions or holiday club sessions for the rest of the academic year.
During these very unprecedented times, although we were open from 1st June, some parents continued to keep their children at home. With this in mind, Pippin found a different way to ensure we kept in touch with the children at home. We made packs of resources for parents to collect, the presentations we would normally do for children moving onto big school and for new starters joining us in September had to be sent out as slide shows via email. To help the new starters, we had a virtual tour made and this is now found on our website for all our Pippin families to view. We invited parents at home, via our online Tapestry programme, to work on the children's next steps to help the children progress and reach their developmental targets. The children who move onto big school normally have a graduation photo taken. Due to the pandemic we had a 'seaside' board made which was painted with the graduation gown and scroll, the children were then asked to visit Pippin outside to pop their heads through the face hole and had their photos taken.
During the pandemic lockdowns, we had to put some staff on furlough. We continued to keep in touch with all the staff on furlough via welfare telephone calls, emails and our website.
To try to keep the children and staff as safe as possible whilst attending our setting, extra hygiene measures were put in place. We stopped anyone entering our premises other than the children and staff. Parents were asked not to enter the premises unless absolutely necessary. All staff, children and anyone else coming into the setting (parents/maintenance workers) had to take their temperature on entering the building. All toys and resources used in each session had to be cleaned on a daily basis. We did also close on a Friday to be able to have a deep clean of the building take place.
Although we have had a very different year, the children have still accessed the curriculum in various ways and have progressed. All the children have learned about the pandemic and have adapted to new routines very well.
Due to the closure and limited services we could offer, we have been aware of the financial impact and have put on hold some planned cosmetic building maintenance including, painting the interior, changing some carpet areas to hard flooring and replacing some laptops/computers. All these plans will be revisited in the next academic year. The committee along with the management team took the decision to not implement a pay rise when the review was conducted in June.
## **FINANCIAL REVIEW**
## **Financial position**
During the year, Pippin Playgroup generated incoming resources totalling £501,971 (2020 - £462,995). This income is made up of parents contributions totalling £190,457 (2020 - £176,362), government funding totalling £260,013 (2020 - £236,421), government grants totalling £48,576 (2020 - £47,691), fundraising events totalling £2,906 (2020 - £2,452) and interest on savings accounts of £19 (2020 - £69).
Outgoing resources for the year totalled £493,858 (2020 - £522,407) with the majority of resources being spent towards staff costs totalling £439,568 (2020 - £457,742).
At the reporting date, the Charity had net current assets of £398,152 (2020 - £389,639), which includes £423,992 (2020 - £413,907) held in bank accounts.
## **Principal funding sources**
Primary funding is provided through fees paid by the parents of the children who attend the pre-school.
Central Bedfordshire council also provide funding in respect of eligible children covered under a Government childcare initiative.
Pippin Playgroup is also provided with the use of a building with which to provide its services to the community, which is provided by Central Bedfordshire Council and is managed by the pre-school manager and committee.
## **Reserves policy**
At the reporting date, Pippin Playgroup held a restricted fund of £260,000 (2020 - £260,000).
This fund is held separately as contingency to secure an alternative premises if required, to continue to deliver the capabilities of the Playschool.
Page 2
**PIPPIN PLAYGROUP**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021**
## **FINANCIAL REVIEW**
## **Going concern**
The Trustees have considered the ability of the Charity to continue as a going concern.
The current Covid-19 pandemic forced the closure of the Pre-school from 25th March 2020. We opened again on the 1st June 2020 with a capped number of children totalling 25 each day.
Pippin Playgroup had sufficient cash reserves to support itself throughout the period of closure, restricted funds can be called upon in any case of a prolonged emergency situation, and we therefore believe it is appropriate to report on a going concern basis.
## **FUTURE PLANS**
The plans for the following year are to replace the carpet areas to hard flooring, to become more durable and hygienic. To have the exterior of the building painted, again for durability. We would like to have a pet at Pippin for the children to help look after and this will ensure that our children who do not have the opportunity to have pets at home, have the experience of caring for and them in our setting.
We intend on inviting in people from different occupations i.e. police, firefighters and doctors, this will enhance their curriculum and extend their learning. We would like to purchase some more IPads for the children's use and carryout fund raising to be able to have a defibrillator on our premises.
We need to renew all the practitioners first aid qualifications before December 2021 and I plan to have a First Aid trainer come into the setting to deliver this in house.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
## **Governance and Management**
Day to day running of the Charity's activities is delegated by the Trustees to the pre-school manager.
## **Risk management**
The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error
The Charity relies on consistent intake of children between 2 - 4 years of age to attend the pre-school. The Charity therefore relies on good and consistent birth rates within the Bedfordshire area to maintain the children intake, of which no issues has arisen in the past or immediate future.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number**
1028855
## **Principal address**
Buttercup Road Stotfold Hitchin Herts SG5 4PF
Page 3
**PIPPIN PLAYGROUP**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021**
## **Trustees**
Mrs R Bell (resigned 7.10.2021) Mrs M Herlihy (resigned 7.10.2021) Mrs J Wood (resigned 7.10.2021) Mrs A Saunders (resigned 7.10.2021) Ms L Farrell Ms L Clark (resigned 7.10.2021) Ms L De Necker (resigned 7.10.2021) Ms K Moore (resigned 7.10.2021) Mr C Barnes (appointed 7.10.2021) Ms W Ho (appointed 7.10.2021) Ms T Curtis (appointed 7.10.2021) Ms K Adams (appointed 1.9.2020)
On 1 September 2020, Ms K Adams was appointed to the board of Trustees.
On 7 October 2021, Mr C Barnes, Ms W-C Ho and Ms T Curtis were appointed to the board of Trustees.
## **Independent Examiner**
Jones Hunt & Keelings Chartered Certified Accountants and Chartered Tax Advisers 71 Knowl Piece Wilbury Way Hitchin SG4 0TY
Approved by order of the board of trustees on 23 June 2022 and signed on its behalf by:
C Barnes - Trustee
Page 4
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PIPPIN PLAYGROUP**
## **Independent examiner's report to the trustees of Pippin Playgroup**
I report to the charity trustees on my examination of the accounts of Pippin Playgroup (the Trust) for the year ended 31 August 2021.
## **Responsibilities and basis of report**
As the charity trustees of the Trust 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 Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Association of Chartered Certified Accountants which is one of the listed bodies.
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 Trust 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.
Alfonso Del Basso Association of Chartered Certified Accountants Jones Hunt & Keelings Chartered Certified Accountants and Chartered Tax Advisers 71 Knowl Piece Wilbury Way Hitchin SG4 0TY
23 June 2022
Page 5
## **PIPPIN PLAYGROUP**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021**
|Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
4
Parents contributions
**190,457**
Council funding
**260,013**
Government grants
**48,576**
Other trading activities
2
**2,906**
Investment income
3
**19**
**Total**
**501,971**
**EXPENDITURE ON**
**Charitable activities**
5
Governance costs
**3,300**
Charitable activities
**50,990**
Staff costs
**439,568**
**Total**
**493,858**
**NET INCOME/(EXPENDITURE)**
**8,113**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**134,873**
**TOTAL FUNDS CARRIED FORWARD**
**142,986**|Restricted
funds
£
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**260,000**
**260,000**|**2021**
**Total**
**funds**
**£**
**190,457**
**260,013**
**48,576**
**2,906**
**19**
**501,971**
**3,300**
**50,990**
**439,568**
**493,858**
**8,113**
**394,873**
**402,986**|2020
Total
funds
£
176,362
236,421
47,691
2,452
69
462,995
2,700
61,965
457,742
522,407
(59,412)
454,285
394,873|
|---|---|---|---|
## **CONTINUING OPERATIONS**
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 6
## **PIPPIN PLAYGROUP**
## **BALANCE SHEET 31 AUGUST 2021**
|Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
11
**4,834**
**CURRENT ASSETS**
Debtors
12
**9,515**
Cash at bank
**163,992 **
**173,507**
**CREDITORS**
Amounts falling due within one year
13
**(35,355)**
**NET CURRENT ASSETS**
**138,152 **
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**142,986**
**NET ASSETS**
**142,986**
**FUNDS**
14
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
funds
£
**-**
**-**
**260,000**
**260,000**
**-**
**260,000**
**260,000**
**260,000**|**2021**
**Total**
**funds**
**£**
**4,834**
**9,515**
**423,992 **
**433,507**
**(35,355)**
**398,152 **
**402,986**
**402,986**
**142,986**
**260,000**
**402,986**|2020
Total
funds
£
5,234
4,294
413,907
418,201
(28,562)
389,639
394,873
394,873
134,873
260,000
394,873|
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 23 June 2022 and were signed on its behalf by:
C Barnes - Trustee
The notes form part of these financial statements
Page 7
## **PIPPIN PLAYGROUP**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash provided by/(used in) operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the beginning of**
**the reporting period**
**Cash and cash equivalents at the end of the**
**reporting period**|**2021**
**£**
**13,687 **
**13,687 **
**(3,736)**
**115**
**19**
**(3,602)**
**10,085**
**413,907**
**423,992**|2020
£
(45,939)
(45,939)
(2,001)
-
69
(1,932)
(47,871)
461,778
413,907|
|---|---|---|
The notes form part of these financial statements
Page 8
**PIPPIN PLAYGROUP**
## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income/(expenditure) for the reporting period (as per the Statement of**
**Financial Activities)**
**Adjustments for:**
Depreciation charges
Profit on disposal of fixed assets
Interest received
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by/(used in) operations**|**2021**
**£**
**8,113**
**4,136**
**(115)**
**(19)**
**(5,221)**
**6,793**
**13,687**|2020
£
(59,412)
6,108
-
(69)
10,513
(3,079)
(45,939)|
|---|---|---|
2. **ANALYSIS OF CHANGES IN NET FUNDS**
||At 1.9.20|Cash flow|**At 31.8.21**|
|---|---|---|---|
||£|£|**£**|
|**Net cash**||||
|Cash at bank and in hand|**413,907**|**10,085**|**423,992**|
||**413,907 **|**10,085**|**423,992 **|
|**Total**|**413,907 **|**10,085**|**423,992 **|
The notes form part of these financial statements
Page 9
**PIPPIN PLAYGROUP**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
The presentation currency of the financial statements is the pound sterling (£).
## **Significant judgements and estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. In the Director's opinion, there are no significant judgements or key sources of estimation uncertainty.
## **Financial instruments**
The company only enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 33% on cost Computer equipment - 33% on cost
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Pension costs and other post-retirement benefits**
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
Page 10
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Government grants**
Government grants have been accounted for under the accrual model, recognised as other income against the period to which they relate.
|**2.**
**OTHER TRADING ACTIVITIES**
Fundraising events
**3.**
**INVESTMENT INCOME**
Deposit account interest
**4.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Parents contributions
Parents contributions
Funding
Council funding
Grants
Government grants
Grants received, included in the above, are as follows:
Coronavirus Small Business Grant Fund
Coronavirus Job Retention Scheme
Coronavirus Discretionary Grant
**5.**
**CHARITABLE ACTIVITIES COSTS**
Governance costs
Charitable activities|**2021**
2020
**£**
£
**2,906**
2,452
**2021**
2020
**£**
£
**19**
69
**2021**
2020
**£**
£
**190,457**
176,362
**260,013**
236,421
**48,576**
47,691
**499,046**
460,474
**2021**
2020
**£**
£
**-**
10,000
**21,886**
37,691
**26,690**
-
**48,576**
47,691
Support
costs (see
note 6)
£
**3,300**
**50,990**
**54,290**|
|---|---|
|||
continued...
Page 11
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **6. SUPPORT COSTS**
|Information
Property
Governance
Management
technology
expenditure
costs
£
£
£
£
Governance costs
**-**
**-**
**-**
**3,300**
Charitable activities
**14,869**
**5,789**
**26,017**
**4,315**
**14,869**
**5,789**
**26,017**
**7,615**|Totals
£
**3,300**
**50,990**|
|---|---|
||**54,290**|
## **7. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.
## **8. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:|**2021**
**£**
**407,141**
**18,387**
**9,291 **
**434,819**|2020
£
423,183
20,906
10,199|
|---|---|---|
|||454,288|
||||
## Staff
|**2021**|2020|
|---|---|
|**30**|33|
No employees received emoluments in excess of £60,000.
Staff costs also include £1,582 (2020 - £1,144) for staff uniforms and £3,167 (2020 - £2,310) for staff training.
## **9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Parents contributions
176,362
Council funding
236,421
Government grants
47,691
Other trading activities
2,452
Investment income
69
**Total**
462,995
**EXPENDITURE ON**
**Charitable activities**
Governance costs
2,700
Charitable activities
61,965
Staff costs
457,742
**Total**
522,407|Restricted
funds
£
-
-
-
-
-
-
-
-
-
-|Total
funds
£
176,362
236,421
47,691
2,452
69
462,995
2,700
61,965
457,742
522,407|
|---|---|---|
continued...
Page 12
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
|**9.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
Unrestricted
Restricted
fund
funds
£
£
**NET INCOME/(EXPENDITURE)**
(59,412)
-
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
194,285
260,000
**TOTAL FUNDS CARRIED FORWARD**
134,873
260,000
**10.**
**GOVERNANCE COSTS**
Governance costs includes:
**2021**
**£**
Independent Examiner's remuneration
**600**
Independent Examiner's remuneration for other services
**2,700**
**11.**
**TANGIBLE FIXED ASSETS**
Fixtures
and
Computer
fittings
equipment
£
£
**COST**
At 1 September 2020
**38,952**
**17,463**
Additions
**1,451**
**2,285**
Disposals
**(4,282)**
**(4,075) **
At 31 August 2021
**36,121**
**15,673**
**DEPRECIATION**
At 1 September 2020
**34,752**
**16,429**
Charge for year
**3,170**
**851**
Eliminated on disposal
**(4,232)**
**(4,010) **
At 31 August 2021
**33,690**
**13,270**
**NET BOOK VALUE**
At 31 August 2021
**2,431 **
**2,403**
At 31 August 2020
4,200
1,034
**12.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**2021**
**£**
Trade debtors
**7,066**
Other debtors and prepayments
**2,449**
**9,515**|Total
funds
£
(59,412)
454,285
394,873
**2020**
**£**
600
2,100
Totals
£
**56,415**
**3,736**
**(8,357)**
**51,794**
**51,181**
**4,021**
**(8,242)**
**46,960**
**4,834 **
5,234
2020
£
2,859
1,435
4,294|
|---|---|
|||
|||
|||
|||
|||
|||
continued...
Page 13
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Accruals and deferred income
Other creditors and accruals|**2021**
**£**
**1,471**
**26,746**
**7,138**
**35,355**|2020
£
1,445
23,798
3,319|
|---|---|---|
|||28,562|
Accruals and deferred income relates to childrens pre-school and wrap-care fees received in respect of the following academic year commencing September 2021 (2020 - September 2020).
## **14. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
**Restricted funds**
Property fund
Resources fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**Restricted funds**
Property fund
Resources fund
**TOTAL FUNDS**|Net
movement
At
At 1.9.20
in funds
31.8.21
£
£
£
**134,873**
**8,113**
**142,986**
**250,000**
**-**
**250,000**
**10,000**
**-**
**10,000**
**260,000**
**-**
**260,000**
**394,873**
**8,113**
**402,986**
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
**501,971**
**(493,858)**
**8,113**
**501,971**
**(493,858) **
**8,113**
Net
movement
At
At 1.9.19
in funds
31.8.20
£
£
£
194,285
(59,412)
134,873
250,000
-
250,000
10,000
-
10,000
260,000
-
260,000
454,285
(59,412)
394,873|At
31.8.21
£
**142,986**
**250,000**
**10,000**|
|---|---|---|
|||**260,000**|
|||**402,986**|
|||**8,113**|
|||At
31.8.20
£
134,873
250,000
10,000|
|||260,000|
|||394,873|
continued...
Page 14
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **14. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
462,995
462,995|Resources
Movement
expended
in funds
£
£
(522,407)
(59,412)
(522,407)
(59,412)|
|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
||||Net||
|---|---|---|---|---|
||||movement|At|
||At 1.9.19||in funds|31.8.21|
||£||£|£|
|**Unrestricted funds**|||||
|General fund|194,285||(51,299)|142,986|
|**Restricted funds**|||||
|Property fund|250,000||-|250,000|
|Resources fund|10,000||-|10,000|
||260,000||-|260,000|
|**TOTAL FUNDS**|454,285||(51,299)|402,986|
|A current year 12 months and prior year 12 months combined net movement in funds,||included in the above are as follows:|||
||Incoming||Resources|Movement|
||resources||expended|in funds|
||£||£|£|
|**Unrestricted funds**|||||
|General fund|964,966||(1,016,265)|(51,299)|
|**TOTAL FUNDS**|964,966||(1,016,265)|(51,299)|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
## **15. EMPLOYEE BENEFIT OBLIGATIONS**
The Charity operates an auto-enrolment pension scheme for the benefit of its employees. During the year, the Charity contributed £9,291 (2020 - £10,199).
## **16. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 August 2021.
## **17. ULTIMATE CONTROLLING PARTY**
The charity is controlled by the trustees.
Page 15
**PIPPIN PLAYGROUP**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021**
|**INCOME AND ENDOWMENTS**
**Other trading activities**
Fundraising events
**Investment income**
Deposit account interest
**Charitable activities**
Parents contributions
Funding
Grants
**Total incoming resources**
**EXPENDITURE**
**Staff costs**
Wages
Social security
Pensions
Uniform
Staff training
**Support costs**
**Management**
Food and drink
Toys and books
Telephone
Postage and stationery
Sundries
Travel expenses
**Information technology**
Website and software
Computer equipment
**Property expenditure**
Rent, rates and water
Light and heat
Repairs, equipment and resources
Insurance, licences and subscriptions
Depreciation of fixtures and fittings
**Governance costs**
Legal and professional fees
Carried forward|2021
£
**2,906**
**19**
**190,457**
**260,013**
**48,576**
**499,046**
**501,971**
**407,141**
**18,387**
**9,291**
**1,582**
**3,167 **
**439,568**
**4,227**
**3,529**
**2,547**
**3,180**
**1,228**
**158**
**14,869**
**4,873**
**916**
**5,789**
**662**
**2,241**
**14,785**
**5,109**
**3,220**
**26,017**
**4,315**
**4,315**|2020
£
2,452
69
176,362
236,421
47,691
460,474
462,995
423,183
20,906
10,199
1,144
2,310
457,742
3,170
3,546
3,501
3,896
1,039
239
15,391
6,150
1,026
7,176
1,266
2,141
20,643
5,129
5,082
34,261
5,137
5,137|
|---|---|---|
This page does not form part of the statutory financial statements
Page 16
**PIPPIN PLAYGROUP**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021**
|**Governance costs**
Brought forward
Examiner's remuneration
Accountancy
Total resources expended
**Net income/(expenditure)**|2021
£
**4,315**
**600**
**2,700**
**7,615**
**493,858**
**8,113**|2020
£
5,137
600
2,100
7,837
522,407
(59,412)|
|---|---|---|
This page does not form part of the statutory financial statements
Page 17
**REGISTERED CHARITY NUMBER: 1028855**
## **TRUSTEES' REPORT AND**
**UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **FOR**
**PIPPIN PLAYGROUP**
**PIPPIN PLAYGROUP**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
||**Page**|
|---|---|
|**Trustees' Report**|1 to 4|
|**Independent Examiner's Report**|5|
|**Statement of Financial Activities**|6|
|**Balance Sheet**|7|
|**Cash Flow Statement**|8|
|**Notes to the Cash Flow Statement**|9|
|**Notes to the Financial Statements**|10 to 16|
|**Detailed Statement of Financial Activities**|17 to 18|
**PIPPIN PLAYGROUP**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021**
The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of 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**
## **Objectives and aims**
Pippin Playgroup's aims are to provide a safe, secure, nurturing environment for children aged 2 - 4 years old. We offer wraparound care which includes a breakfast club, lunch club, after-school club and holiday club. The wraparound sessions are for children aged 2 - 9 years old.
The pre-school is run by a committee and is a community based group, with the aim to include parents in all aspects of running the group.
We aim to provide affordable childcare by keeping the session fees as low as possible whilst covering running costs.
The staff team are committed to ensuring that all the children attending Pippin Playgroup are given the opportunity to learn and develop, accessing a varied curriculum of activities from the Early Years Foundation Stage guidance and encouraging them to learn and to reach their full potential.
We have staff qualified to support children with special educational needs and speech and language difficulties.
We support the children in learning about healthy eating and physical exercise by planning activities to promote them within our curriculum.
## **Public benefit**
The trustees have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charity Commission.
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities, and in particular, the specific guidance on charities for the advancement of education.
The main beneficiaries of Pippin Playgroup are the children attending the pre-school from the local area who receive a high standard level of care from a charity with a low turnover of staff and a very high level knowledge of the Early Years Foundation Stage Framework and hold all the relevant qualifications to ensure inclusive practise of high quality childcare.
Parents benefit from their children receiving affordable childcare that promotes independence, resilience and self-esteem.
Pippin Playgroup currently provide pre-school places for 87 children, and wrap-around care for 155 children.
Page 1
## **PIPPIN PLAYGROUP**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021**
## **ACHIEVEMENT AND PERFORMANCE**
## **Achievement and performance**
Pippin has supported more members of staff this year to embark on qualifications to enhance their professional and personal development. The qualifications completed this year have been two level 2, two level 3 and one level 4 in childcare. We currently have 1 member of staff working towards their level 3 qualification in childcare and 1 working towards level 5 as a senior practitioner.
COVID-19 has had a big effect on Pippin this year, due to the pandemic for the first time ever since Pippin was established we had to close our services in March 2020. This decision was made in line with government guidance, the restrictions placed on building space and staff welfare. We were very happy to be able to open again on the 1st June 2020, although this was for pre-school children only in accordance with the government guidance. We were not able to offer our wraparound care sessions or holiday club sessions for the rest of the academic year.
During these very unprecedented times, although we were open from 1st June, some parents continued to keep their children at home. With this in mind, Pippin found a different way to ensure we kept in touch with the children at home. We made packs of resources for parents to collect, the presentations we would normally do for children moving onto big school and for new starters joining us in September had to be sent out as slide shows via email. To help the new starters, we had a virtual tour made and this is now found on our website for all our Pippin families to view. We invited parents at home, via our online Tapestry programme, to work on the children's next steps to help the children progress and reach their developmental targets. The children who move onto big school normally have a graduation photo taken. Due to the pandemic we had a 'seaside' board made which was painted with the graduation gown and scroll, the children were then asked to visit Pippin outside to pop their heads through the face hole and had their photos taken.
During the pandemic lockdowns, we had to put some staff on furlough. We continued to keep in touch with all the staff on furlough via welfare telephone calls, emails and our website.
To try to keep the children and staff as safe as possible whilst attending our setting, extra hygiene measures were put in place. We stopped anyone entering our premises other than the children and staff. Parents were asked not to enter the premises unless absolutely necessary. All staff, children and anyone else coming into the setting (parents/maintenance workers) had to take their temperature on entering the building. All toys and resources used in each session had to be cleaned on a daily basis. We did also close on a Friday to be able to have a deep clean of the building take place.
Although we have had a very different year, the children have still accessed the curriculum in various ways and have progressed. All the children have learned about the pandemic and have adapted to new routines very well.
Due to the closure and limited services we could offer, we have been aware of the financial impact and have put on hold some planned cosmetic building maintenance including, painting the interior, changing some carpet areas to hard flooring and replacing some laptops/computers. All these plans will be revisited in the next academic year. The committee along with the management team took the decision to not implement a pay rise when the review was conducted in June.
## **FINANCIAL REVIEW**
## **Financial position**
During the year, Pippin Playgroup generated incoming resources totalling £501,971 (2020 - £462,995). This income is made up of parents contributions totalling £190,457 (2020 - £176,362), government funding totalling £260,013 (2020 - £236,421), government grants totalling £48,576 (2020 - £47,691), fundraising events totalling £2,906 (2020 - £2,452) and interest on savings accounts of £19 (2020 - £69).
Outgoing resources for the year totalled £493,858 (2020 - £522,407) with the majority of resources being spent towards staff costs totalling £439,568 (2020 - £457,742).
At the reporting date, the Charity had net current assets of £398,152 (2020 - £389,639), which includes £423,992 (2020 - £413,907) held in bank accounts.
## **Principal funding sources**
Primary funding is provided through fees paid by the parents of the children who attend the pre-school.
Central Bedfordshire council also provide funding in respect of eligible children covered under a Government childcare initiative.
Pippin Playgroup is also provided with the use of a building with which to provide its services to the community, which is provided by Central Bedfordshire Council and is managed by the pre-school manager and committee.
## **Reserves policy**
At the reporting date, Pippin Playgroup held a restricted fund of £260,000 (2020 - £260,000).
This fund is held separately as contingency to secure an alternative premises if required, to continue to deliver the capabilities of the Playschool.
Page 2
**PIPPIN PLAYGROUP**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021**
## **FINANCIAL REVIEW**
## **Going concern**
The Trustees have considered the ability of the Charity to continue as a going concern.
The current Covid-19 pandemic forced the closure of the Pre-school from 25th March 2020. We opened again on the 1st June 2020 with a capped number of children totalling 25 each day.
Pippin Playgroup had sufficient cash reserves to support itself throughout the period of closure, restricted funds can be called upon in any case of a prolonged emergency situation, and we therefore believe it is appropriate to report on a going concern basis.
## **FUTURE PLANS**
The plans for the following year are to replace the carpet areas to hard flooring, to become more durable and hygienic. To have the exterior of the building painted, again for durability. We would like to have a pet at Pippin for the children to help look after and this will ensure that our children who do not have the opportunity to have pets at home, have the experience of caring for and them in our setting.
We intend on inviting in people from different occupations i.e. police, firefighters and doctors, this will enhance their curriculum and extend their learning. We would like to purchase some more IPads for the children's use and carryout fund raising to be able to have a defibrillator on our premises.
We need to renew all the practitioners first aid qualifications before December 2021 and I plan to have a First Aid trainer come into the setting to deliver this in house.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
## **Governance and Management**
Day to day running of the Charity's activities is delegated by the Trustees to the pre-school manager.
## **Risk management**
The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error
The Charity relies on consistent intake of children between 2 - 4 years of age to attend the pre-school. The Charity therefore relies on good and consistent birth rates within the Bedfordshire area to maintain the children intake, of which no issues has arisen in the past or immediate future.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number**
1028855
## **Principal address**
Buttercup Road Stotfold Hitchin Herts SG5 4PF
Page 3
**PIPPIN PLAYGROUP**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021**
## **Trustees**
Mrs R Bell (resigned 7.10.2021) Mrs M Herlihy (resigned 7.10.2021) Mrs J Wood (resigned 7.10.2021) Mrs A Saunders (resigned 7.10.2021) Ms L Farrell Ms L Clark (resigned 7.10.2021) Ms L De Necker (resigned 7.10.2021) Ms K Moore (resigned 7.10.2021) Mr C Barnes (appointed 7.10.2021) Ms W Ho (appointed 7.10.2021) Ms T Curtis (appointed 7.10.2021) Ms K Adams (appointed 1.9.2020)
On 1 September 2020, Ms K Adams was appointed to the board of Trustees.
On 7 October 2021, Mr C Barnes, Ms W-C Ho and Ms T Curtis were appointed to the board of Trustees.
## **Independent Examiner**
Jones Hunt & Keelings Chartered Certified Accountants and Chartered Tax Advisers 71 Knowl Piece Wilbury Way Hitchin SG4 0TY
Approved by order of the board of trustees on 23 June 2022 and signed on its behalf by:
C Barnes - Trustee
Page 4
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PIPPIN PLAYGROUP**
## **Independent examiner's report to the trustees of Pippin Playgroup**
I report to the charity trustees on my examination of the accounts of Pippin Playgroup (the Trust) for the year ended 31 August 2021.
## **Responsibilities and basis of report**
As the charity trustees of the Trust 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 Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Association of Chartered Certified Accountants which is one of the listed bodies.
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 Trust 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.
Alfonso Del Basso Association of Chartered Certified Accountants Jones Hunt & Keelings Chartered Certified Accountants and Chartered Tax Advisers 71 Knowl Piece Wilbury Way Hitchin SG4 0TY
23 June 2022
Page 5
## **PIPPIN PLAYGROUP**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021**
|Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
4
Parents contributions
**190,457**
Council funding
**260,013**
Government grants
**48,576**
Other trading activities
2
**2,906**
Investment income
3
**19**
**Total**
**501,971**
**EXPENDITURE ON**
**Charitable activities**
5
Governance costs
**3,300**
Charitable activities
**50,990**
Staff costs
**439,568**
**Total**
**493,858**
**NET INCOME/(EXPENDITURE)**
**8,113**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**134,873**
**TOTAL FUNDS CARRIED FORWARD**
**142,986**|Restricted
funds
£
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**260,000**
**260,000**|**2021**
**Total**
**funds**
**£**
**190,457**
**260,013**
**48,576**
**2,906**
**19**
**501,971**
**3,300**
**50,990**
**439,568**
**493,858**
**8,113**
**394,873**
**402,986**|2020
Total
funds
£
176,362
236,421
47,691
2,452
69
462,995
2,700
61,965
457,742
522,407
(59,412)
454,285
394,873|
|---|---|---|---|
## **CONTINUING OPERATIONS**
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 6
## **PIPPIN PLAYGROUP**
## **BALANCE SHEET 31 AUGUST 2021**
|Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
11
**4,834**
**CURRENT ASSETS**
Debtors
12
**9,515**
Cash at bank
**163,992 **
**173,507**
**CREDITORS**
Amounts falling due within one year
13
**(35,355)**
**NET CURRENT ASSETS**
**138,152 **
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**142,986**
**NET ASSETS**
**142,986**
**FUNDS**
14
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
funds
£
**-**
**-**
**260,000**
**260,000**
**-**
**260,000**
**260,000**
**260,000**|**2021**
**Total**
**funds**
**£**
**4,834**
**9,515**
**423,992 **
**433,507**
**(35,355)**
**398,152 **
**402,986**
**402,986**
**142,986**
**260,000**
**402,986**|2020
Total
funds
£
5,234
4,294
413,907
418,201
(28,562)
389,639
394,873
394,873
134,873
260,000
394,873|
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 23 June 2022 and were signed on its behalf by:
C Barnes - Trustee
The notes form part of these financial statements
Page 7
## **PIPPIN PLAYGROUP**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash provided by/(used in) operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the beginning of**
**the reporting period**
**Cash and cash equivalents at the end of the**
**reporting period**|**2021**
**£**
**13,687 **
**13,687 **
**(3,736)**
**115**
**19**
**(3,602)**
**10,085**
**413,907**
**423,992**|2020
£
(45,939)
(45,939)
(2,001)
-
69
(1,932)
(47,871)
461,778
413,907|
|---|---|---|
The notes form part of these financial statements
Page 8
**PIPPIN PLAYGROUP**
## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income/(expenditure) for the reporting period (as per the Statement of**
**Financial Activities)**
**Adjustments for:**
Depreciation charges
Profit on disposal of fixed assets
Interest received
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by/(used in) operations**|**2021**
**£**
**8,113**
**4,136**
**(115)**
**(19)**
**(5,221)**
**6,793**
**13,687**|2020
£
(59,412)
6,108
-
(69)
10,513
(3,079)
(45,939)|
|---|---|---|
2. **ANALYSIS OF CHANGES IN NET FUNDS**
||At 1.9.20|Cash flow|**At 31.8.21**|
|---|---|---|---|
||£|£|**£**|
|**Net cash**||||
|Cash at bank and in hand|**413,907**|**10,085**|**423,992**|
||**413,907 **|**10,085**|**423,992 **|
|**Total**|**413,907 **|**10,085**|**423,992 **|
The notes form part of these financial statements
Page 9
**PIPPIN PLAYGROUP**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
The presentation currency of the financial statements is the pound sterling (£).
## **Significant judgements and estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. In the Director's opinion, there are no significant judgements or key sources of estimation uncertainty.
## **Financial instruments**
The company only enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 33% on cost Computer equipment - 33% on cost
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Pension costs and other post-retirement benefits**
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
Page 10
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Government grants**
Government grants have been accounted for under the accrual model, recognised as other income against the period to which they relate.
|**2.**
**OTHER TRADING ACTIVITIES**
Fundraising events
**3.**
**INVESTMENT INCOME**
Deposit account interest
**4.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Parents contributions
Parents contributions
Funding
Council funding
Grants
Government grants
Grants received, included in the above, are as follows:
Coronavirus Small Business Grant Fund
Coronavirus Job Retention Scheme
Coronavirus Discretionary Grant
**5.**
**CHARITABLE ACTIVITIES COSTS**
Governance costs
Charitable activities|**2021**
2020
**£**
£
**2,906**
2,452
**2021**
2020
**£**
£
**19**
69
**2021**
2020
**£**
£
**190,457**
176,362
**260,013**
236,421
**48,576**
47,691
**499,046**
460,474
**2021**
2020
**£**
£
**-**
10,000
**21,886**
37,691
**26,690**
-
**48,576**
47,691
Support
costs (see
note 6)
£
**3,300**
**50,990**
**54,290**|
|---|---|
|||
continued...
Page 11
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **6. SUPPORT COSTS**
|Information
Property
Governance
Management
technology
expenditure
costs
£
£
£
£
Governance costs
**-**
**-**
**-**
**3,300**
Charitable activities
**14,869**
**5,789**
**26,017**
**4,315**
**14,869**
**5,789**
**26,017**
**7,615**|Totals
£
**3,300**
**50,990**|
|---|---|
||**54,290**|
## **7. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.
## **8. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:|**2021**
**£**
**407,141**
**18,387**
**9,291 **
**434,819**|2020
£
423,183
20,906
10,199|
|---|---|---|
|||454,288|
||||
## Staff
|**2021**|2020|
|---|---|
|**30**|33|
No employees received emoluments in excess of £60,000.
Staff costs also include £1,582 (2020 - £1,144) for staff uniforms and £3,167 (2020 - £2,310) for staff training.
## **9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Parents contributions
176,362
Council funding
236,421
Government grants
47,691
Other trading activities
2,452
Investment income
69
**Total**
462,995
**EXPENDITURE ON**
**Charitable activities**
Governance costs
2,700
Charitable activities
61,965
Staff costs
457,742
**Total**
522,407|Restricted
funds
£
-
-
-
-
-
-
-
-
-
-|Total
funds
£
176,362
236,421
47,691
2,452
69
462,995
2,700
61,965
457,742
522,407|
|---|---|---|
continued...
Page 12
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
|**9.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**
Unrestricted
Restricted
fund
funds
£
£
**NET INCOME/(EXPENDITURE)**
(59,412)
-
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
194,285
260,000
**TOTAL FUNDS CARRIED FORWARD**
134,873
260,000
**10.**
**GOVERNANCE COSTS**
Governance costs includes:
**2021**
**£**
Independent Examiner's remuneration
**600**
Independent Examiner's remuneration for other services
**2,700**
**11.**
**TANGIBLE FIXED ASSETS**
Fixtures
and
Computer
fittings
equipment
£
£
**COST**
At 1 September 2020
**38,952**
**17,463**
Additions
**1,451**
**2,285**
Disposals
**(4,282)**
**(4,075) **
At 31 August 2021
**36,121**
**15,673**
**DEPRECIATION**
At 1 September 2020
**34,752**
**16,429**
Charge for year
**3,170**
**851**
Eliminated on disposal
**(4,232)**
**(4,010) **
At 31 August 2021
**33,690**
**13,270**
**NET BOOK VALUE**
At 31 August 2021
**2,431 **
**2,403**
At 31 August 2020
4,200
1,034
**12.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
**2021**
**£**
Trade debtors
**7,066**
Other debtors and prepayments
**2,449**
**9,515**|Total
funds
£
(59,412)
454,285
394,873
**2020**
**£**
600
2,100
Totals
£
**56,415**
**3,736**
**(8,357)**
**51,794**
**51,181**
**4,021**
**(8,242)**
**46,960**
**4,834 **
5,234
2020
£
2,859
1,435
4,294|
|---|---|
|||
|||
|||
|||
|||
|||
continued...
Page 13
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Accruals and deferred income
Other creditors and accruals|**2021**
**£**
**1,471**
**26,746**
**7,138**
**35,355**|2020
£
1,445
23,798
3,319|
|---|---|---|
|||28,562|
Accruals and deferred income relates to childrens pre-school and wrap-care fees received in respect of the following academic year commencing September 2021 (2020 - September 2020).
## **14. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
**Restricted funds**
Property fund
Resources fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**Restricted funds**
Property fund
Resources fund
**TOTAL FUNDS**|Net
movement
At
At 1.9.20
in funds
31.8.21
£
£
£
**134,873**
**8,113**
**142,986**
**250,000**
**-**
**250,000**
**10,000**
**-**
**10,000**
**260,000**
**-**
**260,000**
**394,873**
**8,113**
**402,986**
Incoming
Resources
Movement
resources
expended
in funds
£
£
£
**501,971**
**(493,858)**
**8,113**
**501,971**
**(493,858) **
**8,113**
Net
movement
At
At 1.9.19
in funds
31.8.20
£
£
£
194,285
(59,412)
134,873
250,000
-
250,000
10,000
-
10,000
260,000
-
260,000
454,285
(59,412)
394,873|At
31.8.21
£
**142,986**
**250,000**
**10,000**|
|---|---|---|
|||**260,000**|
|||**402,986**|
|||**8,113**|
|||At
31.8.20
£
134,873
250,000
10,000|
|||260,000|
|||394,873|
continued...
Page 14
**PIPPIN PLAYGROUP**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021**
## **14. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
462,995
462,995|Resources
Movement
expended
in funds
£
£
(522,407)
(59,412)
(522,407)
(59,412)|
|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
||||Net||
|---|---|---|---|---|
||||movement|At|
||At 1.9.19||in funds|31.8.21|
||£||£|£|
|**Unrestricted funds**|||||
|General fund|194,285||(51,299)|142,986|
|**Restricted funds**|||||
|Property fund|250,000||-|250,000|
|Resources fund|10,000||-|10,000|
||260,000||-|260,000|
|**TOTAL FUNDS**|454,285||(51,299)|402,986|
|A current year 12 months and prior year 12 months combined net movement in funds,||included in the above are as follows:|||
||Incoming||Resources|Movement|
||resources||expended|in funds|
||£||£|£|
|**Unrestricted funds**|||||
|General fund|964,966||(1,016,265)|(51,299)|
|**TOTAL FUNDS**|964,966||(1,016,265)|(51,299)|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
## **15. EMPLOYEE BENEFIT OBLIGATIONS**
The Charity operates an auto-enrolment pension scheme for the benefit of its employees. During the year, the Charity contributed £9,291 (2020 - £10,199).
## **16. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 August 2021.
## **17. ULTIMATE CONTROLLING PARTY**
The charity is controlled by the trustees.
Page 15
**PIPPIN PLAYGROUP**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021**
|**INCOME AND ENDOWMENTS**
**Other trading activities**
Fundraising events
**Investment income**
Deposit account interest
**Charitable activities**
Parents contributions
Funding
Grants
**Total incoming resources**
**EXPENDITURE**
**Staff costs**
Wages
Social security
Pensions
Uniform
Staff training
**Support costs**
**Management**
Food and drink
Toys and books
Telephone
Postage and stationery
Sundries
Travel expenses
**Information technology**
Website and software
Computer equipment
**Property expenditure**
Rent, rates and water
Light and heat
Repairs, equipment and resources
Insurance, licences and subscriptions
Depreciation of fixtures and fittings
**Governance costs**
Legal and professional fees
Carried forward|2021
£
**2,906**
**19**
**190,457**
**260,013**
**48,576**
**499,046**
**501,971**
**407,141**
**18,387**
**9,291**
**1,582**
**3,167 **
**439,568**
**4,227**
**3,529**
**2,547**
**3,180**
**1,228**
**158**
**14,869**
**4,873**
**916**
**5,789**
**662**
**2,241**
**14,785**
**5,109**
**3,220**
**26,017**
**4,315**
**4,315**|2020
£
2,452
69
176,362
236,421
47,691
460,474
462,995
423,183
20,906
10,199
1,144
2,310
457,742
3,170
3,546
3,501
3,896
1,039
239
15,391
6,150
1,026
7,176
1,266
2,141
20,643
5,129
5,082
34,261
5,137
5,137|
|---|---|---|
This page does not form part of the statutory financial statements
Page 16
**PIPPIN PLAYGROUP**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021**
|**Governance costs**
Brought forward
Examiner's remuneration
Accountancy
Total resources expended
**Net income/(expenditure)**|2021
£
**4,315**
**600**
**2,700**
**7,615**
**493,858**
**8,113**|2020
£
5,137
600
2,100
7,837
522,407
(59,412)|
|---|---|---|
This page does not form part of the statutory financial statements
Page 17
## PIPPIN PLAYGROUP
Independent Examiner’s Report to the Trustees For The Year Ended 31[st] August 2021 23[rd] June 2022
1
## **CONTENTS PAGE**
||**Page**|
|---|---|
|Financial Statement Overview|3|
|Financial Performance Overview|3|
|Profit and Loss commentary|3|
|Balance sheet commentary|4 & 5|
|Independent Examiner’s Report|6|
|||
|Year Ended 31stAugust 2021 Financial Statements|Appendix 1|
|Detailed income and Expenditure Summaries|Appendix 2|
2
## **FINANCIAL STATEMENT OVERVIEW**
The financial statements were presented for signature to Chris Barnes on 23 June 2022.
Alf Del Basso, on behalf of Jones Hunt & Keelings, signed the independent examiners report on 23 June 2022.
## **FINANCIAL PERFORMANCE OVERVIEW**
In summary, the playgroup’s net income for the year ended 31[st] August 2021 was £8,113, which has increased by £67,525 from a net expenditure of £59,412 in 2020. In 2020, Pippin supported more members of staff to embark on qualifications to enhance their professional development but as expected with the effects of Covid, planned maintenance work on the building had been put on hold. Due to the ease of some Covid restrictions, turnover for Pippin increased from £462,995 in 2020 to £501,971.
The playgroup’s balance sheet reserves total £402,986 split between general unrestricted funds of £142,986 and restricted funds of £260,000 being £250,000 property fund and £10,000 playgroup resource fund. The restricted funds have remained the same as in 2018 and are still appropriate despite the economic downturn.
## **Statement of Financial Activities (SOFA) (Appendix 1: Page 6)**
Parent contributions for 2021 have increased by £14,095 from £176,362 in 2020 to £190,457 this year.
Fundraising events have increased this year, totaling £2,906 compared with £2,452 in 2020, an increase of £454.
Total expenditure has reduced in the year by £28,549 to £493,858 compared to 2020 which saw £522,407 being spent on total expenditure.
A full breakdown has been provided in appendix 2; however, we would like to comment on the following key overhead costs as follows:
- a. Staffing costs have decreased by £18,174 from £457,742 last year to £439,568 this year. The playgroup employed an average of 30 (2020 – 33) members of staff during the year and have encouraged staff to become more experienced by undertaking further qualifications to improve the offerings of the pre-school.
- b. Repairs, equipment and resources expenditure has decreased by £5,858 from £20,643 in 2020 to £14,785 in 2021. Last years expenditure included a significant increase in repairs and maintenance costs due to a refresh of equipment in the library and playrooms.
3
## **Balance Sheet as at 31[st] August 2021 (Appendix 1: Page 7)**
## **Fixed Assets – Appendix 1: Page 11, Note 11**
During the year the playgroup purchased assets totaling £3,736 and made disposed of assets with a cost of £8,357.
Assets are depreciated and expensed to the SOFA on a straight-line basis over a 3-year period, i.e. spreading the cost of significant asset purchases over 3 financial years.
After depreciation, the net book value of fixed assets is £4,834.
## **Current Assets - Appendix 1: Page 13, Note 12**
Current assets included the following:
|Trade debtors
Prepayments of costs for following year
**Total**|**31 August**
**2021**
7,066
2,449
**£9,515**|**31 August**
**2020**
2,859
1,436
**£4,294**|
|---|---|---|
||||
## **Cash at Bank – Appendix 1: Page 7**
The cash at bank and in hand balances were as follows:
|Cash at bank|**31 August**
**2021**
**£423,992**|**31 August**
**2020**
**£413.907**|
|---|---|---|
||||
The cash in the bank has been split between unrestricted general funds of £163,992 and money set aside for restricted funds totaling £260,000.
## **Current Liabilities - Appendix 1: Page 14, Note 13**
Current Liabilities include the following:
|Trade creditors
Deferred income
Accruals of costs
**Total**|**31 August**
**2021**
1,471
26,746
7,138
**£35,355**|**31 August**
**2020**
1,445
23,798
3,319
**£28,562**|
|---|---|---|
||||
Deferred income represents fees invoiced in August 2021 but relating to, and income for, the following academic year commencing September 2021.
## **Movement in Funds – Page 14, Note 14**
The movement in funds has shown a small gradual increase as a result of Covid restrictions easing. The pre-school has seen reserves increase to £402,986 from £394,873 at the start of the year.
## **Unrestricted funds**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.
4
## **Restricted funds**
Restricted funds can only be used for specific purposes as defined by the objectives of the charity.
The restricted funds are as follows:
|Property Fund
Playgroup Resource Fund
**Total**|**31 August**
**2021**
250,000
10,000
**£260,000**|**31 August**
**2020**
250,000
10,000
**£260,000**|
|---|---|---|
||||
The property fund has been set aside with the intention to purchase land and build a nursery for the playgroup in the future, should the need arise.
The playgroup resources fund has been set aside to purchase additional toys and equipment for the playgroup.
For the time being, management is happy with the level of funds which have been restricted and have made no plans to change these in the coming year.
5
## **INDEPENDENT EXAMINER’S REPORT (Appendix 1, Page 5).**
We have carried out an independent examination of the financial statements on Appendix 1.
## **Independent examiner’s report to the Trustees of Pippin Playgroup**
I report to the charity trustees on my examination of the accounts of the Pippin Playgroup (the Trust) for the year ended 31[st] August 2021.
## **Responsibilities and basis of report**
As the charity trustees of the Trust 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 Trust’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable directions given by the Charity Commission under Section 145(5)(b) of the Act.
## **Independent examiner's statement**
Since your charity’s gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am registered member of Association of Certified Chartered Accountants which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause that in any material respect:
1. accounting records were not kept is respect of the Trust 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 contents 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 confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.
If you have any questions regarding this report, please contact Alf Del Basso.
## **Alf Del Basso**
## **Independent Examiner**
## **For and on Behalf of Jones Hunt & Keelings**
## **23 June 2022**
6