Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
**Charity registration number 1033297**
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023**
Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Ms M Skinner Ms J Pryor Ms K Dunn **Charity number** 1033297 **Principal address** Butts Road Sholing Southampton SO19 1BN **Independent examiner** Fiander Tovell Limited Stag Gates House 63/64 The Avenue Southampton Hampshire SO17 1XS
Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Independent examiner's report|4|
|Statement of financial activities|5|
|Balance sheet|6|
|Notes to the financial statements|7 - 12|
Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **TRUSTEES' REPORT**
## **FOR THE YEAR ENDED 31 JULY 2023**
The trustees present their annual report and financial statements for the year ended 31 July 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
## **Objectives and activities**
The object of the charity is to provide pre-school care and education for children from the age of 2 years and 9 months to 4 years and 11 months.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives in planning future activities. The Trust furthers its charitable purposes for the public benefit by making its facilities and services available to a wider public to practice the Muslim faith.
## **Main achievements**
The main achievements over the last year has been being able to provide a wide variety of play based learning to all the children that attend the setting. We have also recruited more staff members which means we have been able to deliver more in-depth teaching and support for more children.
## **Financial review**
Total income received for the year ended 31 July 2023 amounts to £110,117 (2022: £91,586) with a surplus of £13,200 (2022: deficit of £11,499).
Income is raised by Nursery Education payments from Southampton City Council and from parents/carers of children and through several fundraising events.
## **Reserves Policy**
## Aims
- Sholing Community Centre Pre-School is a standalone organisation with no financial back up from any other source.
- It is essential that Sholing Community Centre Pre-School has the reserves available to meet any potential financial threat, such as redundancy.
- We aim to ensure that Sholing Community Centre Pre-School financial security is assured at all times.
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023**
## Procedures
In order to achieve this aim, we operate the following procedures.
- The following items of expenditure will be considered when deciding how much money should be kept as reserves:
Staff salaries for the relevant notice period
- Redundancy pay for each staff member
Three months running (expenses) costs of the business
- Reserves will be held in a separate bank/building society account where interest may be earned but there is instant access to the funds available. Three months running costs may be kept in the general bank account as long as it is ensured it is accounted for in the forecasts.
- Whenever possible, the level of reserves will match the anticipated expenditure as listed above and reviewed on a termly basis by the finance officer and agreed and recorded by the committee at a committee meeting. A detailed report showing the amount needed is to be presented at each committee meeting.
- Should the level of reserves rise above the amount indicated within this policy, the additional money and any interest that may have been earned will be used to benefit Sholing Community Centre Pre-School and any service that it offers to the children and their families.
- In the event that Sholing Community Centre Pre-School closes, any reserves remaining after paying all outstanding bills will be passed to another charitable trust agreed by the committee.
The Trust held accumulated funds of £48,790 as at the date of this report.
## **Structure, governance and management**
The charity was registered on 23 February 1994. The constitution was adopted on 14 October 1993.
The trustees who served during the year and up to the date of signature of the financial statements were: Ms M Skinner
Ms J Pryor
Ms K Dunn
The minimum number of committee members shall be 5 and the maximum shall be 12. The committee shall consists of:
- a Chair, a Treasurer and a Secretary
- not less than 2 nor more than 9 other elected members
The committee members shall be elected for one year at the Annual General Meeting. Retiring committee members are eligible for re-election unless they have already served on the committee in any capacity for ten consecutive years.
Not less than two weeks before the date of next Annual General Meeting of the Pre-school at which the election of elected committee members will take place, each member shall be sent a form which any member wishing to stand as a candidate for election to the committee must complete and return to the Secretary to indicate their willingness to act as a member of the committee if elected.
At the Annual General Meeting the prospective new elected members of the committee will be those candidates receiving the highest number of votes from the memebers. Candidates will need to notify their willingness to stand on the committee to the Secretary.
None of the trustees have any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
## **Organisational Structure**
The Charity is run by a General Committee consisting of the Trustees of the organisation. The Committee meet at least three times a year to discuss current issues and fundraising events.
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023**
The trustees' report was approved by the Board of Trustees.
.............................. Ms J Pryor **Trustee** 4/11/2024 | 05:32 PST Date: .............................................
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF SHOLING COMMUNITY CENTRE PRESCHOOL**
I report to the trustees on my examination of the financial statements of Sholing Community Centre Preschool (the charity) for the year ended 31 July 2023.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
- I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Andrew Jay, ACA, FCCA
Fiander Tovell Limited Stag Gates House 63/64 The Avenue Southampton Hampshire SO17 1XS 6/11/2024 | 11:43 GMT Dated: .........................
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 JULY 2023**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2023**|**2022**|
||**Notes**|**£**|**£**|
|**Income from:**||||
|Donations and legacies|**3**|-|513|
|Charitable activities|**4**|109,054|91,065|
|Investments|**5**|1,063|8|
|**Total income**||110,117|91,586|
|Charitable activities|**6**|96,917|103,085|
|**Net income/(expenditure) and movement in funds**||13,200|(11,499)|
|**Reconciliation of funds:**||||
|Fund balances at 1 August 2022||35,590|47,089|
|**Fund balances at 31 July 2023**||48,790|35,590|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **BALANCE SHEET**
## **AS AT 31 JULY 2023**
|**2023**
**Notes**
**£**
**£**
**Current assets**
Cash at bank and in hand
54,010
**Creditors: amounts falling due within**
**one year**
**11**
5,220
Net current assets
48,790
**The funds of the charity**
Unrestricted funds
48,790
48,790
4/11/2024 | 05:32 PST|**2022**
**£**
38,590
3,000|**£**
35,590|
|---|---|---|
|||35,590|
|||35,590|
||||
The financial statements were approved by the trustees on .........................
.............................. Ms J Pryor **Trustee**
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023**
## **1 Accounting policies**
## **Charity information**
Sholing Community Centre Preschool is a charity and is registered with the Charity Commission in England and Wales (registration number 1033297).
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
## **1.4 Income**
Monthly funding is received from Southampton City Council which fluctuates depending on how many children attend sessions that term and that all the terms and conditions have been met. This income is recognised when the amounts are received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023**
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
## **1.6 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **Basic financial assets**
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## **Basic financial liabilities**
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## **Derecognition of financial liabilities**
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.7 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.8 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023**
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount 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 these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are no key accounting estimates or judgements.
## **3 Income from donations and legacies**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2023**|**2022**|
|||**£**|**£**|
||Donations and gifts|-|513|
|**4**|**Income from charitable activities**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**2023**|**2022**|
|||**£**|**£**|
||**Charitable Income Preschool**|||
||Fees|5,125|8,833|
||Southampton City council funding|102,959|82,163|
||Other income|970|69|
|||109,054|91,065|
|**5**|**Income from investments**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**2023**|**2022**|
|||**£**|**£**|
||Interest receivable|1,063|8|
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023**
## **6 Expenditure on charitable activities**
|||**Charitable**|**Charitable**|
|---|---|---|---|
|||**Expenditure**|**Expenditure**|
|||**Preschool**|**Preschool**|
|||**2023**|**2022**|
|||**£**|**£**|
||**Direct costs**|||
||Staff costs|71,749|76,541|
||Premises expenses|15,101|14,390|
||Resources|3,504|1,147|
||Insurance|503|631|
||Uniform|-|329|
||Cleaning|250|89|
||Other costs|1,733|1,658|
||Training costs|-|1,170|
||Equipment|-|2,971|
|||92,840|98,926|
||**Share of support and governance costs (see note 7)**|||
||Support|357|1,159|
||Governance|3,720|3,000|
|||96,917|103,085|
||**Analysis by fund**|||
||Unrestricted funds|96,917|103,085|
|**7**|**Support costs allocated to activities**|||
|||**2023**|**2022**|
|||**£**|**£**|
||Committee expenses|-|43|
||Professional subscriptions|-|176|
||Admin/Stationery|357|940|
||Governance costs|3,720|3,000|
|||4,077|4,159|
||**Analysed between:**|||
||Charitable Expenditure Preschool|4,077|4,159|
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023**
|**7**
**Support costs allocated to activities**
**Governance costs comprise:**
Accountancy
Independent Examination|**(Continued)**
**2023**
**2022**
**£**
**£**
1,860
1,500
1,860
1,500
3,720
3,000|**(Continued)**
**2023**
**2022**
**£**
**£**
1,860
1,500
1,860
1,500
3,720
3,000|
|---|---|---|
|||3,000|
## **8 Trustees**
Total remuneration paid to trustees during the year was £14,054 (2022: £12,652).
None of the trustees received any benefits from the charity during the year (2022: £nil),
## **9 Employees**
The average monthly number of employees during the year was:
||**2023**|**2022**|
|---|---|---|
||**Number**|**Number**|
||6|8|
|**Employment costs**|**2023**|**2022**|
||**£**|**£**|
|Wages and salaries|64,697|70,244|
|Social security costs|3,331|2,402|
|Other pension costs|3,721|3,895|
||71,749|76,541|
There were no employees whose annual remuneration was more than £60,000.
## **10 Taxation**
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
## **11 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2023**|**2022**|
||**£**|**£**|
|Accruals and deferred income|5,220|3,000|
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Docusign Envelope ID: C877B03B-05EE-44AB-A499-29CE52846979
## **SHOLING COMMUNITY CENTRE PRESCHOOL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023**
## **12 Unrestricted funds**
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
||**At 1 August**|**Incoming**|**Resources**|**At 31 July**|
|---|---|---|---|---|
||**2022**|**resources**|**expended**|**2023**|
||**£**|**£**|**£**|**£**|
|General funds|35,590|110,117|(96,917)|48,790|
|**Previous year:**|**At 1 August**|**Incoming**|**Resources**|**At 31 July**|
||**2021**|**resources**|**expended**|**2022**|
||**£**|**£**|**£**|**£**|
|General funds|47,089|91,586|(103,085)|35,590|
- **13** Operating lease commitments
## **Lessee**
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Within one year|6,949|-|
The lease has a 6 month notice to terminate the contract and therefore, the amount disclosed is 6 months worth of the lease payments.
## **14 Related party transactions**
There were no disclosable related party transactions during the year (2022 - none).
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