## **ARDEN GROVE PRESCHOOL**
## **REPORT OF THE COMMITTEE FOR THE YEAR ENDED 31 AUGUST 2023**
The committee presents its report and audited financial statements for the year ended 31 August 2023
## **Reference and Administrative Information**
Charity Name: Arden Grove Preschool Charity registration number: 1037079 Operational address: Cottinghams Drive Hellesdon Norwich Norfolk NR6 6QA
## **Trustees (Committee)**
Helen Robinson Chairperson Gemma Baxter Secretary Hayley Thompson Treasurer
Claire Willingham Connie Gooch Charlotte Simms Charlene Pinfold Sam Lincoln Laura Kelly Janine Coulson Melissa Willmott-Taylor Emma Hawes
## **Supervisor of Pre School**
E Stevens
## **Bankers**
Natwest
## **Independent Examiner**
L Douglass 96 Drayton Wood Road Norwich NR6 5BZ
## **Structure, Governance and Management**
## **Governing Document**
Arden Grove Preschool was established in January 1994 at Arden Grove Infant School and was registered as a charity on 28[th] April 1994 and is governed by a constitution adopted on the 15[th] Day of May 2008
## **Recruitment and Appointment of Committee Members**
At least 60% of the committee, including co-opted members, must be parents or guardians of children in the Preschool. In the event that 60% cannot be achieved, then affiliate members may be elected. The committee members are elected for a period of one year at the annual general meeting. Retiring committee members are eligible for re-election unless they have already served as a committee member for 10 consecutive years.
The committee members were all elected at the AGM in Autumn Term 2022.
## **Committee Members Induction and Training**
New committee members are encouraged to read the charity’s constitution, the last financial statements of the charity and the Charity Commission guidance, CC3, ‘The Essential Trustee’.
## **Risk Management**
The committee have reviewed and identified the risks that the Pre School faces and have systems to monitor and control these risks to mitigate any impact they may have on the Preschool in the future. These systems are reviewed on a regular basis.
## **Organisational Structure**
The charity has a committee consisting of Chair, Secretary and Treasurer and not less than 4 nor more than 9 elected members. If the committee so decides, it may have not more than 3 members co-opted by the committee. At least two-thirds of the committee members shall at the time of election be parents or guardians of children in the Pre School. The committee meets half termly and the day to day running of the Pre School rests with the Pre School Supervisor, as assisted by 5 members of staff.
## **Objectives and Activities**
The charity’s objects are to enhance the development and education of children below compulsory school age by providing safe and satisfying play, in which the parents have the right to take part and encouraging other charitable activities through which parents may help the children.
## **Achievements and Performance**
We continue to be a thriving Pre School, full and with a healthy waiting list. We are fortunate to have a strong established, management committee and generally are well resourced.
Staff continue to undertake vocational training in Early Years and also in their areas of responsibility. We are linking more with Arden Grove Infant and Nursery School’s Foundation Stage team to further improve the outside environment for all children. We continue to work with outside agencies to support our children’s well-being and individual needs.
The pressures around our finances continue, with further successive increases to the minimum wage compounded by insufficient government funding and overall increase in our costs, this year is the second time that we have eaten into our reserves.
Our fundraising efforts are back on track post pandemic and as a result we will ensure that we remain financially stable.
## **Public Benefit**
The Pre School is open to all children, without any catchment area, nationality, religious or other restriction, from when they are two years and three months old until they are able to enter infant school. Early Years funding is available for all children from the term following their third birthday. 2 year old funded place are available to those families meeting the criteria.
## **Financial Review**
There was a net decrease in general funds of £8,423.92.
There was an increase in the designated fundraising fund of £290.97.
## **Reserves Policy**
It is the policy of the committee to maintain general funds at a level that equates to three months resources expended, a figure of approximately £16,000. This provides sufficient funds to cover salaries and other costs incurred in the event of a temporary reduction in fee or other income.
Free reserves in the general fund at the year-end amounted to £23,722.63
Designated funds resulting from parental fundraising amounting to £3,030.70 are held in the fundraising fund to provide new equipment during each school year.
## **Plans for the Future**
We are continuing to improve our outside area. We have installed some bench seating and planters to create a restful, sensory space for children and adults.
We are glad to be able to welcome back students and young adults who wish to train in Early Years. Our apprentice is in her second year and we will mentor through to her award. We also work with City College to offer placements to students wishing to enter the Early Years workforce.
Approved by the Committee on and signed on its behalf by:
**Helen Robinson**
**Chair of Committee.**
## **Arden Grove Pre-School**
## **Income and Expenditure Account**
|For the Year Ended
Notes
**Income:**
Fees
NCC Funding
Fundraising
Milk Refunds
Interest
NCC Smarter Working Grant
Donations
SMP Advance Funding
SSP Reclaim Funding
**Expenditure:**
Staff Wages
Rent
Repairs & Renewals
Fruit/Milk - Sundries
Consumables
Equipment
Insurance
Memberships/Subscriptions
Accountancy Fees
Staff Training
Other Staff Costs
Admin/Office supplies
Fundraising Costs
**Excess/(shortfall) of income over expenditure**
Bank Balance B/Fwd
Petty Cash
Bank Balance C/Fwd
Petty Cash
Represented by:
Current A/C - 08842159
Fundraising A/C -68354657
Reserve A/C - 69897433
Petty Cash as at 31/08||31/08/2023
31/08/2022
£
£
14365.62
21452.33
38068.65
31209.35
2022.52
2338.91
154.33
148.64
260.74
14.39
0.00
500.00
520.00
0.00
0.00
5945.16
0.00
134.89
55391.86
61743.67
53059.93
43457.21
2730.00
2613.00
54.00
30.00
1023.11
898.02
705.52
664.76
2756.27
5626.04
782.85
717.00
325.20
303.60
862.50
967.50
353.00
246.00
231.48
0.00
878.42
978.90
53.50
78.09
63815.78
56580.12
**-8423.92**
**5163.55**
37948.31
32982.58
0.00
0.00
37948.31
32982.58
29524.21
37948.13
0.00
0.00
29524.21
37948.13
2771.21
2141.69
3030.37
2739.40
23722.63
33067.04
0.00
0.00
29524.21
37948.13|Variance
£
7086.71
-6859.30
316.39
-5.69
-246.35
500.00
-520.00
5945.16
134.89|
|---|---|---|---|
||||6351.81
-9602.72
-117.00
-24.00
-125.09
-40.76
2869.77
-65.85
-21.60
105.00
-107.00
-231.48
100.48
24.59|
||||-7235.66|
|||||
|||||
|||||
|||||
Accounts Independently checked by: Lacey Douglass
Date: 11/09/2023
**INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF ARDEN GROVE PRESCHOOL**
## **YEAR ENDED 31 AUGUST 2023**
I report on the accounts of Arden Grove Pre-School for the year ended 31 August 2023
## **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 under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to
- examine the accounts under section 145 of the 2011 Act;
- follow the procedures laid down in the general Directions given by the Charity Commission.
- state whether particular matters have come to my attention
## **Basis of independent examiner’s report**
My examination was carried out in accordance with general Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘’true and fair view’’ and the report is limited to those matters set out in the statement below.
## **Independent examiner’s statement**
In connection with my examination no matter has come to my attention:
- (1) Which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with Section 130 of the 2011 Act; and
- To prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act
Have not been met; or
- (2) to which in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
**Lacey Douglass 96 Drayton Wood Road Hellesdon Norwich NR6 5BZ**
**11[th] September 2023**
1
**Financial Report for Year to 31[st] August 2023**
Fees were lower than in 2022 but this was offset by an increase in funding which was higher than in 2022. Fee’s £14,365.62 (2022 - £21,452.33) Funding £38,068.65 (2022 - £31,209.35)
Increase in funding rates in April 2023 were enough to cover the National Living Wage rise only and not staff on highly pay rates. 3/4 funding increased to £4.31 per hour (2022 - £4.08), 2-year funding increased to £5.64 per hour (2022 - £5.50)
The preschool recorded a deficit of £8,423.92 as at 31.08.23 (2022 £5,163.55 surplus).
However, the surplus in 2022 included £5945.16 ring fenced within reserves for maternity pay which was received in advance from HMRC in July 2022. If this value is removed from the deficit, it would be reduced to a deficit of £2,478.76.
Staff wages were £10,000 higher this year which is due to Statutory Maternity Pay being paid and also the significant wage increases in April 2022.
The pre-school continued to invest in equipment, including another laptop and new Ipads.
Inflationary pressures were also felt due to the cost of living crisis.
The current account holds £2,771.21 to meet the day to day running costs of the pre-school.
The reserve account holds £23,722.63. The pre-school should hold enough reserves to cover at least 3 months expenditure (£16,000) and the amount held in the reserve account is more than sufficient for this purpose should the preschool encounter financial difficulties in the future.
The fundraising total was £2022.52, a decrease of £316.39 on the previous year. One large event that the pre-school would have attended in June was cancelled due to adverse weather conditions. The fundraising account holds £3,030.37 at the end of the financial year.
With staff costs being the largest expenditure and the legal requirements of ratio’s of staff to children, the committee need to be aware that the sustainable future of the pre-school is still finely balanced. However, there are significant changes to early years funding from April 2024 and a large increase in funding, particularly for 2 year olds from September 2023.
An external bookkeeping service was retained by the committee for payroll, monthly accounts, budgets and year end accounts. While this is a cost to the pre-school, the benefits for the committee have been wide ranging.
Lacey Douglass
Bookkeeper
> 11[th] September 2022
2