St Tudy Pre-school Report for August 2024 - July 2025
Chair's Report
This year has been one of transformation and challenge for St Tudy Pre-school, defined above all by our move into the new Community Hub building. This milestone represents a significant step forward in our ability to serve the families of St Tudy and surrounding areas.
The move itself was a tremendous undertaking. The team worked tirelessly to prepare the new building for our post-Easter opening, transforming an empty space into a warm, welcoming environment for our children. We invested thoughtfully in new equipment including sturdy tables and chairs, play kitchens, play dens, water tables, splash mats, and sleeping mats. Where possible, we repurposed items from our old building, and what we couldn't bring with us was carefully rehomed, with only unsalvageable items going to recycling.
This year has tested our resilience in many ways we didn't anticipate. Taking on responsibility for electricity costs in our old building mid-year presented unexpected financial pressures, with bills in our extremely energy inefficient building exceeding £400 per month, despite a rent reduction of £300. The delayed move also created additional complications with internet connectivity that took several weeks to resolve and unexpected expenses via a PAYG sim to maintain some network connectivity. These operational challenges, combined with the April living wage increase and changes to National Insurance contributions, required careful navigation.
In response to the mounting administrative demands of running the pre-school, we made the strategic decision in December 2024 to invest in professional administration systems - Xero for accounting and Famly for nursery management. Despite the financial investment required, these tools have already begun to reduce the burden on our staff and volunteer teams and will improve our ability to maximise income and manage costs going forward.
Throughout these challenges, what has been most remarkable is the dedication of our staff and trustees. We wouldn't be where we are today without several people really stepping up and going above and beyond. Our community owes a genuine debt of gratitude for the commitment shown this year. The whole team have stepped up in countless ways, while our staff maintained the high standard of care our families expect even amidst significant disruption.
Community engagement and fundraising remained important income streams to us, but capacity in the team was limited to run many of our initiatives. We are therefore indebted to St Tudy Community Shop who chose us as the beneficiary for their annual
Christmas Hamper raffle – raising a fantastic £360. We also participated in the Tremeer Open Day, with Mel, Sophie and I working extremely hard on a very hot day to deliver refreshments to the masses. Our efforts were rewarded with a donation of £340. We're grateful to Team Two Scoops and Team No Name, who chose the pre-school as beneficiaries after winning the St Tudy Inn pub quiz several times throughout the year. St Tudy Parish Council supported us with a grant to purchase storage sheds for our new outdoor areas and Mark Andrews Ltd kindly sponsored the procurement of new hi-viz vests for the children, to improve safety on excursions. We’d also like to extend our sincere thanks to local supporter John Lane, whose birthday fundraiser on Facebook raised £200 and helped us purchase two new mud kitchens for our outdoor areas.
Elsie’s report will go into the financial picture in more detail but I do want to reiterate that there have been significant but planned financial outgoings this year including our £35,000 contribution to the Community Hub construction (structured as a loan to be repaid through reduced rent at £100/month) and substantial investment in pre-school equipment and resources. When you take away these one-off investments, our underlying operational position is much stronger than the headline figure initially suggests.
The challenges of 2024/25 have been significant. Yet we've emerged with a beautiful new facility, better systems, and a team whose dedication has been truly inspiring. The foundations we've laid this year position us well for growth, particularly as we benefit from our improved premises and the government's continued expansion of funded childcare provision. Our new building gives us capacity we've never had before - now our task is to fill it sustainably.
I want to close by extending my heartfelt thanks to every trustee, staff member, parent, and community member who has supported St Tudy Pre-school this year. Your contributions, whether large or small, have been essential to seeing us through this period of change. Thank you.
Rose Cashley-Field, Chair of Trustees
Treasurer's Report
The financial year ending 31 July 2025 shows an operating loss of £14,553.77, but this headline figure requires careful interpretation as it reflects strategic investment rather than financial distress.
Income Analysis
Our total turnover for the year was £142,835.32, a decrease of 10.6% from the previous year's £159,743.57. Breaking this down by category:
Fees: £27,653.97 (up 7.5% from £25,723.85)
This modest increase in parent-paid fees is encouraging, particularly given the operational disruptions caused by our building move. However, approximately £900 in fees remained unpaid at year-end, and collection efforts continue to recover these.
Funding: £78,668.85 (up 52.4% from £51,630.10)
This substantial increase reflects the full-year impact of accepting younger children and the government's expanded funded hours provision. This is the most positive indicator in our accounts and demonstrates the success of our strategic decision in early 2024 to welcome children back again from their first birthday.
Grants & Donations: £34,088.90 (down 56.5% from £78,308.43)
This significant decrease is explained by the prior year including the exceptional legacy gift. The current year figure includes a major grant received towards the Community Hub construction, which was passed directly to St Tudy Playing Field Trust for construction costs.
Fundraising: £1,084.00 (down 64.4% from £3,046.58) The demands of the move severely limited our capacity for fundraising events this year, and so we’re especially grateful for the community led support which benefited the pre-school this year.
Expenditure Analysis
Total administrative costs were £157,389.09, representing a 59.8% increase from the previous year's £98,759.22. This substantial increase requires detailed explanation:
Salaries and Employment Costs:
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Salaries: £87,159.32 (up 14.3% from £76,266.49)
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Tax and NI: £4,902.54 (up 83.4% from £2,672.64)
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Pensions: £3,663.13 (up 33.7% from £2,739.30)
Combined employment costs totalled £95,724.99, an increase of 17.1% year-on-year. This reflects both the April living wage increase and changes to National Insurance
contributions. Critically, while our funding income increased 52.4%, our total income from fees and funding combined (£106,322.82) only increased 25.0% year-on-year. This growing gap between income and employment costs is the most significant structural challenge facing the pre-school.
Electricity: £5,279.33
This was our largest, unexpected cost increase. In mid-2024, we took on responsibility for electricity in our old, energy-inefficient building. Despite a rent reduction passed on to us by our landlords to help us meet this cost, our monthly electricity bills exceeded £400, creating a significant budget pressure. We have since received a refund from our supplier of £676.40 in the new financial year, upon closure of our electricity account, which will benefit next year's figures. Electricity is thankfully included in our rental costs in our new super energy-efficient premises, so thankfully we do not need to worry about these costs going forward.
Nursery Equipment & Resources: £7,499.95
This planned investment equipped our new premises with quality furniture and learning materials essential for delivering excellent care in the Community Hub.
IT: £1,426.50
We invested in Xero accounting software and Famly nursery management software to improve operational efficiency and financial administration after struggling with inadequate systems (or no systems!) for years.
Grant Funding: £33,250.00
This represents a major grant received towards Community Hub construction, passed directly to the Playing Field Trust.
Capital Investment and Balance Sheet Position
Our balance sheet shows net liabilities of £14,553.77, which again requires context. The key element is the Community Hub Loan of £34,600.00 recorded in fixed assets. This comprises our £35,000 contribution to the building construction (net of £400 already recovered), structured as a loan that will be repaid at £100/month through rent reductions.
Financial Outlook
Adjusting for one-off items provides a clearer picture of underlying operations:
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Removing the £33,250 grant passed to Playing Field Trust
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Removing major equipment purchases funded from legacy reserves (approximately £9,000)
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Adding back the £676.40 electricity refund and £900 unpaid fees which should be recovered very soon
Our underlying operational position shows a deficit of approximately £5,000-£6,000, which while not sustainable long-term, is considerably more manageable than the headline loss suggests.
Conclusion
We've made planned strategic investments in infrastructure and systems that position us for sustainable growth. The 52.4% increase in funding income demonstrates the success of our expanded age range and readiness for continued government funding expansion.
Our immediate challenge is managing the growing gap between employment costs and income, while maximising use of our improved facilities. With careful management, robust fee collection, and focus on occupancy, we can return to sustainable operations in 2025/26.
I extend my thanks to Rose and the committee for their support, and to our staff for their continued dedication during a demanding year.
Elsie Preddy, Treasurer
Profit and Loss
St Tudy Pre-school
For the year ended 31 July 2025
| Profit and Loss St Tudy Pre-school For the year ended 31 July 2025 |
|
|---|---|
| 2025 | |
| Turnover | |
| Fees | 27,653.97 |
| Funding | 78,668.85 |
| Fundraising | 1,084.00 |
| Grants & Donations | 34,088.90 |
| Interest Received | 1,339.60 |
| Total Turnover | 142,835.32 |
| Gross Profit | 142,835.32 |
| Administrative Costs | |
| Advertising & Marketing | 208.31 |
| Audit & Accountancy fees | 250.00 |
| Computer Equipment | 76.49 |
| Consumables - Arts & Crafts | 310.37 |
| Consumables - Cleaning & Hygiene | 800.20 |
| Consumables - Food & Drink | 1,774.82 |
| Electricity | 5,279.33 |
| Entertainment | 449.05 |
| General Expenses | 483.47 |
| Grant Funding | 33,250.00 |
| Insurance | 961.80 |
| IT | 1,426.50 |
| Nursery Equipment & Resources | 7,499.95 |
| Payroll Administration | 328.00 |
| Pensions | 3,663.13 |
| Postage | 14.30 |
| Printing, Stationery & Office Supplies | 653.83 |
| Rent | 5,200.00 |
| Repairs & Maintenance | 269.55 |
| Salaries | 87,159.32 |
| Staff Training | 30.00 |
| Subscriptions | 346.14 |
| Tax and National Insurance | 4,902.54 |
| Telephone & Internet | 684.84 |
| Uniform | 647.75 |
| Waste Management | 719.40 |
| Total Administrative Costs | 157,389.09 |
| Operating Profit | (14,553.77) |
| Profit on Ordinary Activities Before Taxation | (14,553.77) |
| Profit after Taxation | (14,553.77) |
Profit and Loss St Tudy Pre-school
5 Nov 2025 Page 1 of 1
Independent examiner's report on the accounts
Section A Independent Examiner’s Report
Report to the trustees/ members of
St Tudy Pre-school
On accounts for the year 31[st] July 2025 Charity no 1029100 ended (if any) Set out on pages 2 2 (remember to include the page numbers of additional sheets)
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed. [The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of [named body]]. Delete [ ] if not applicable.
It is my responsibility to:
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examine the accounts under section 145 of the Charities Act,
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to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
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to state whether particular matters have come to my attention.
Basis of independent examiner’s statement
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
Independent In connection with my examination, no matter has come to my attention examiner's statement (other than that disclosed below *)
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which gives me reasonable cause to believe that in, any material respect, the requirements:
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to keep accounting records in accordance with section 130 of the Charities Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
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have not been met; or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
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Please delete the words in the brackets if they do not apply.
Signed: Nicola Hooper
Date: 05/11/2025
IER
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Name: NICOLA HOOPER
Relevant professional FMAAT qualification(s) or body (if any): Address: 21 CHERRY TREE CLOSE EXETER DEVON EX4 5AT
Section B
Disclosure
Only complete if the examiner needs to highlight material problems.(E.g. accounting records have not been kept in accordance with s132 of the Charities’ Act 2011 and those accounts do not comply with the requirements of the 2008 Regulations setting out the form and content of charity accounts; any material expenditure or action which appears not to be in accordance with the trusts of the charity; any failure to be provided with information and explanations by any past or present trustee, officer or employee; and any material consistency between the accounts and the trustees’ annual report.)
IER
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Give here brief details of any items that the examiner wishes to disclose .
IER
3