Early Years @ Lightcliffe
Charity number 1037861
Annual Report and Financial Statements
for the year ended 31 August 2020
Early Years @ Lightcliffe
Annual Report and Financial Statements
for the year ended 31 August 2020
| Contents | Page |
|---|---|
| Trustees' report | 2 to 4 |
| Examiner's report | 5 |
| Receipts and payments account | 6 |
| Statement of assets and liabilities | 7 |
| Notes to the accounts | 8 to 9 |
Prepared by West Yorkshire Community Accounting Service
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Early Years @ Lightcliffe
Trustees' report for the year ended 31 August 2020
Reference and administrative details of the charity, its trustees and advisors
The trustees during the financial year and up to and including the date the report was approved were: Name Position Dates
Position Dates Gemma Turner Chair Resigned August 2020 Katy Taylor Chair Appointed August 2020 Kim Lambert Treasurer to August 2020 Sarah Hey Treasurer Appointed August 2020 Kirsty Marsden Resigned August 2020 Carly Durrans Laura Midgley Emma Szyczak Appointed August 2020 Kimberley Szyczak Appointed August 2020
Charity number
The charity was registered with the Charity Commission for England and Wales, number 1037861, on 23 May 1994.
Principal address Bankers Christ Church Centre Lightcliffe Unity Trust Bank Leeds Road Nine Brindley Place Lightcliffe Birmingham Halifax B1 2HB HX3 8NU
Independent examiner
Helen Galvin FCCA
West Yorkshire Community Accounting Service
Stringer House 34 Lupton Street Leeds LS10 2QW
Structure, governance and management
The charity is governed by a constitution adopted on 27 October 1993, amended on 2 April 2007 and 18 January 2012.
Method of recruitment and appointment of trustees
The trustees of the charity are appointed by the members at the AGM.
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Early Years @ Lightcliffe
Trustees' report (continued) for the year ended 31 August 2020
Objectives and activities
The charity's objects
To enhance the development and education of children primarily under statutory age by encouraging parents to understand and provide for the needs of their children though community groups and by:
(a) offering appropriate play, education and care facilities, family learning and extended hours groups, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability;
(b) encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs in the local areas;
(c) instigating and adhering to and furthering the aims and objects of the Pre-school Learning Alliance.
The charity's main activities
To provide for children aged 2 to 5 Pre-school education and an after school club.
Public benefit statement
In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular raising the standard of education for local children.
Achievements and performance
We continued to remain open through the lockdown period, provided childcare for keyworkers. We have also managed to keep all our current staff through such uncertain times.
We bought the building in which we have rented for over 20 years. This allowed us to improve our after school environment this year and provided them with their own room, we also now an office, staff area and an area where we can confidential speak with parents.
Financial review
The net payments for the year were £103,142, including net payments of £102,989 on unrestricted funds and net payments of £153 on restricted funds.
Reserves policy
The charity's free reserves at the year end were £22,333.
The committee of Early Years@Lightcliffe have considered the financial risks for the future operation of the group and agreed that a reserves policy should be set in place.
The committee consider that reserves should be maintained in order that the group should be able to operate for 6 months following a serious failure of funding or other event endangering the ability of the group to survive.
Reserves will be maintained to pay for salary costs, mortgage payments, other running costs and statutory redundancy payments. Based on these calculations we will need £97,000 in reserves.
Our reserves are currently much lower than our policy due to the purchase of the building. We plan to build our reserves back up by reducing expenditure where possible, increase fundraising activity and rental income.
This policy will be reviewed on an annual basis.
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Early Years @ Lightcliffe
Trustees' report (continued) for the year ended 31 August 2020
Coronavirus impact statement
There has been a massive operational impact to us as an organisation due to Covid-19, particularly over the period March to June 2020 during Lockdown one. During this period, we remained open to vulnerable children and those of key workers however our attendance numbers, and hence our income, were severely reduced. For all eligible Pre-school children on our register, we continued to receive our 15/30 hours government funding, regardless of whether these children were actually attending during this period. Throughout this semi-closure period many of our loyal families continued to make voluntary payment donations to help protect the longevity of the organisation.
For the period June to August 2020 we were allowed to re-open to all Pre-school children. This resulted in a much greater uptake of places and increased collection of private fees. Also, throughout this period we continued to receive our 15/30 hours government funding for all eligible Pre-school children on register. Throughout the school summer holidays our successful holiday club was open to all children and proved to be very popular, from which the fees collected helped to off-set the lost revenue from the previous term.
To mitigate our loss of fees revenue we negotiated with our landlord to waiver our rent for April 2020, a 50% reduction on rent for May 2020 and a 25% reduction on rent for June 2020. We placed as many staff members as possible on furlough leave and operated on skeleton staff on a rota basis. We also reduced any expenditure where possible, limiting to only essentials.
The trustees have reassessed the charity’s ability to continue for at least 12 months from the date that the accounts are approved and conclude that no material uncertainties exist that cast significant doubt on the charity’s ability to meet its liabilities as they fall due.
Signed on behalf of the board of trustees:
Signed: S Hey Date: 16 March 2021
Name: Sarah Hey (Trustee)
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Early Years @ Lightcliffe
Independent examiner's report to the trustees of Early Years @ Lightcliffe
I report to the charity trustees on my examination of the accounts of the Trust for the year ended 31 August 2020, which are set out on pages 6 to 9.
Responsibilities and basis of report
As the charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts as 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 Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1 accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2 the accounts do not accord with those records.
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.
Signed: …………………………………… Name: Helen Galvin
Relevant professional qualification or body: FCCA
Date: 6 May 2021
West Yorkshire Community Accounting Service
Stringer House 34 Lupton Street Leeds LS10 2QW
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Early Years @ Lightcliffe
Receipts and payments account for the year ended 31 August 2020
| Notes 2020 Unrestricted funds £ Receipts Grants (2) 5,000 Fees 68,316 Fundraising 3,536 Rental income 588 Bank interest 144 Total receipts 77,584 Payments Salaries and NI (3) 32,318 Casual staff 33 Payroll fees 524 Purchase of building 120,000 Rent 5,053 Educational materials, activities and trips 721 Food 1,069 Stationery and administration fees 484 Telephone 345 Accountancy and independent examination 244 Training 172 Uniforms 38 Advertising - Repairs and maintenance 349 Fundraising expenses 54 Bank charges 92 Grant repayment 112 Donations - Staff and committee gifts - Cleaning 134 Equipment 272 Membership and subscriptions 297 Legal and professional fees 17,013 DBS checks 60 Insurance 696 Mortgage interest repayments 415 Utilities 78 Total payments 180,573 (102,989) Fund balances brought forward 125,322 Fund balances carried forward (4) 22,333 Net (payments) / receipts |
2020 Restricted funds £ 85,451 - - - - 85,451 68,255 50 786 - 7,580 1,565 1,603 726 518 367 258 56 - 523 81 139 169 - - 201 407 445 - 89 1,045 623 118 85,604 (153) 13,063 12,910 |
2020 Total funds £ 90,451 68,316 3,536 588 144 163,035 100,573 83 1,310 120,000 12,633 2,286 2,672 1,210 863 611 430 94 - 872 135 231 281 - - 335 679 742 17,013 149 1,741 1,038 196 266,177 (103,142) 138,385 35,243 |
2019 Total funds £ 95,668 62,448 955 - 138 159,209 100,994 1,336 1,230 - 16,875 5,909 3,707 940 828 575 1,257 201 224 6,888 - 170 - 22 550 - - 683 - 60 - - - 142,449 16,760 121,625 138,385 |
|---|---|---|---|
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Early Years @ Lightcliffe
Statement of assets and liabilities
| as at 31 August 2020 2020 Unrestricted £ Cash funds Cash at bank 22,321 Cash in hand 12 Total cash funds 22,333 Other monetary assets Fees outstanding at the year end Prepaid property insurance to 30 June 2021 Assets retained for the charity's own use Christ Church Centre Building (Purchased June 2020 £400,000) Computer and printer Desk and office chairs 2 Filing cabinets Laminator 3 Display boards Various storage containers Television Various toys and other play equipment Liabilities CMBC - Autumn term funding received in advance NEST pension HMRC August salaries paid in September Independent examination Long-term Liabilities Unity Trust Bank 20 year loan for building purchase (Effective from June 2020) |
2020 Restricted £ 12,910 - 12,910 |
2020 Total £ 35,231 12 35,243 £ 2,646 1,355 4,001 £ 12,604 287 609 2,483 672 16,654 280,000 |
2019 Total £ 138,144 241 138,385 |
|---|---|---|---|
Approval of the accounts
The financial statements were approved by the board of trustees on
Date: 16 March 2021
Signed: Sarah Hey (Trustee)
Name: S Hey
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Early Years @ Lightcliffe
Notes to the accounts
for the year ended 31 August 2020
1 Accounting policies
Basis of accounting
The trustees have taken advantage of section 133 of the Charities Act 2011 and have prepared the accounts on a receipts and payments basis.
There has been no change to the accounting policies since last year.
No changes have been made to the accounts for previous years.
Taxation
As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
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Early Years @ Lightcliffe
Notes to the accounts continued
for the year ended 31 August 2020
| 2 Grants CMBC - Family Services HMRC - Coronavirus Job Retention Scheme Tesco Bags of Help COVID-19 Communities Fund CMBC - Small Business Grant Fund 3 Staff costs and numbers Gross salaries Social security costs Employment allowance Pensions |
2020 Unrestricted funds £ - - - 5,000 5,000 |
2020 Restricted funds £ 75,714 9,237 500 - 85,451 |
2020 Total funds £ 75,714 9,237 500 5,000 90,451 2020 £ 98,367 3,706 (2,941) 1,441 100,573 |
2019 Total funds £ 95,668 - - - 95,668 2019 £ 98,149 4,831 (3,132) 1,146 100,994 |
|---|---|---|---|---|
The average number employees during the year was 10 (2019: 8.8). There were no employees with emoluments above £60,000.
| Defined contribution pension scheme | 2020 | 2019 | |
|---|---|---|---|
| Costs of the scheme to the charity for the year | £ 1,441 |
£ 1,146 |
|
| Amount of any contributions outstanding at the year | end 287 |
358 | |
| Amount of any contributions prepaid at the year end | - | - | |
| **4 ** | Restricted funds | Balance b/f Incoming Outgoing Balance c/f |
|
| CMBC - Early Education Funding | £ £ £ £ 13,063 74,904 75,364 12,603 |
||
| CMBC - DCATCH | - 810 810 |
- | |
| HMRC - Coronavirus Job Retention Scheme | - 9,237 9,237 |
- | |
| Tesco Bags of Help COVID-19 Communities Fund | - 500 193 |
307 | |
| 13,063 85,451 85,604 12,910 |
|||
| Fund name | Purpose of restriction | ||
| CMBC - Early Education Funding | For the supply of free early years provision for 2 to 4 | year | |
| olds | |||
| CMBC - DCATCH | To enhance staff ratios during sessions attended by a | ||
| child with disabilities or additional needs | |||
| HMRC - Coronavirus Job Retention Scheme | For staff who have been furloughed due to Covid-19 | ||
| Tesco Bags of Help COVID-19 Communities Fund | To purchase a Writers Retreat Shed and educational resources |
5 Trustee expenses
No trustee received any expenses during this year or the previous year.
6 Trustee remuneration and benefits
No trustee received any remuneration or benefit during this or the previous year.
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