Early Years @ Lightcliffe
Charity number 1037861
Annual Report and Financial Statements
for the year ended 31 August 2022
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Early Years @ Lightcliffe
Annual Report and Financial Statements for the year ended 31 August 2022
| Contents | Page |
|---|---|
| Trustees' report | 2 to 4 |
| Examiner's report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the accounts | 8 to 14 |
Prepared by West Yorkshire Community Accountancy Service CIO
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Early Years @ Lightcliffe
Trustees' report for the year ended 31 August 2022
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 Katy Taylor Chair Emma Szyczak Secretary Sarah Hey Treasurer Kimberley Lambert resigned Dec 2021 Carly Durrans Kimberley Szyczak Charity number 1037861 Registered in England and Wales Registered and principal address Bankers Christ Church Centre Lightcliffe Unity Trust Bank Leeds Road Nine Brindley Place Lightcliffe Birmingham Halifax B1 2HB HX3 8NU
Independent examiner
Katy Sargeant ACA West Yorkshire Community Accountancy Service CIO 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 2022
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 through 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 have continued to expand and improve the provision, taking on more families and updating the preschool rooms with new flooring, new resources and redecoration.
Financial review
The net income for the year was £32,862, all relating to unrestricted funds.
Reserves policy
The charity's free reserves, excluding fixed assets, at the year end were £65,784.
The financial security of Early Years@Lightcliffe is important, therefore money will be kept in reserve for unforeseen circumstances. We aim to maintain a level of reserves to assist us if income falls below expected levels or to assist our recovery should we encounter a business disaster.
We need reserves in order to:
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Meet redundancy liabilities should the pre-school have to close.
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Ensure there are sufficient cash reserves in the current account to cover day to day running costs for a period of one month, with an aim to increase this to three months.
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Ensure continuity of service provision by:
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Meeting unexpected costs such as cover for illness or maternity leave, etc.
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Covering running costs during periods of lower income (e.g. while adjusting to policy changes or following falls in fundraising).
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Early Years @ Lightcliffe
Trustees' report (continued) for the year ended 31 August 2022
Reserves policy continued
- Replace equipment as it wears out and carry out necessary building upgrades/maintenance.
Based on the above we have calculated that our reserves should be between £39,700 and £77,300. This policy will be reviewed on an annual basis.
Approved by the board of trustees on 11/5/23
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 charity for the year ended 31 August 2022, which are set out on pages 6 to 14.
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 charity'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
Since the charity's gross income exceeded £250,000 your examiner must be a fellow of a body listed in section 145 of the 2011 Act.
I confirm that I am qualified to undertake the examination because I am a member of ICAEW 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 charity as required by section 130 of the Charities Act;
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2 the accounts do not accord with those records; or
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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.
Katy Sargeant ACA
11/5/23
West Yorkshire Community Accountancy Service CIO
Stringer House 34 Lupton Street Leeds LS10 2QW
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Early Years @ Lightcliffe
Statement of Financial Activities
(including summary income and expenditure account) for the year ended 31 August 2022
| Notes 2022 Unrestricted funds £ Income from: Grants (2) - Fees 141,782 Fundraising 4,526 Room Hire 8,731 Bank interest 59 Other income 347 Total income 155,445 Expenditure on: Salaries and NI (3) 78,473 Casual staff 1,075 Payroll fees - Educational materials, activities and trips 4,156 Food 5,661 Stationery and administration fees 241 Telephone 485 Independent Examination 572 Training 413 Uniforms 589 Advertising and recruitment costs 1,676 Repairs and maintenance 2,050 Fundraising expenses 1,576 Bank charges 211 Computer consumables 86 Toddler expenses - Cleaning 3,786 Equipment 76 Membership and subscriptions 1,573 Insurance 1,411 Mortgage interest repayments 6,595 Utilities 3,649 Depreciation 7,294 Staff gifts 935 Total expenditure 122,583 Net income / (expenditure) 32,862 Fund balances brought forward (11) 167,880 Fund balances carried forward (4) 200,742 |
2022 Restricted funds £ 107,129 - - - - - 107,129 81,727 953 - 3,539 - 253 430 508 367 523 1,486 1,817 - 187 184 - 3,358 68 1,394 1,251 5,849 3,235 - - 107,129 - - - |
2022 Total funds £ 107,129 141,782 4,526 8,731 59 347 262,574 160,200 2,028 - 7,695 5,661 494 915 1,080 780 1,112 3,162 3,867 1,576 398 270 - 7,144 144 2,967 2,662 12,444 6,884 7,294 935 229,712 32,862 167,880 200,742 |
restated 2021 Total funds £ 97,533 99,107 1,925 5,277 - 395 204,237 115,658 855 930 2,977 3,777 1,884 911 718 441 31 310 12,448 202 262 331 153 1,044 887 319 2,497 12,376 7,935 6,000 - 172,946 31,291 136,589 167,880 |
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
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Early Years @ Lightcliffe
Balance sheet
as at 31 August 2022
| 2022 Unrestricted £ Fixed assets Tangible assets (5) 385,882 Total fixed assets 385,882 Current assets Debtors and prepayments (6) 6,392 Cash at bank and in hand (7) 76,347 Total current assets 82,739 Current liabilities: amounts falling due within one year Creditors and accruals (8) 16,955 Total current liabilities 16,955 Net current assets / (liabilities) 65,784 Total assets less current liabilities 451,666 Creditors: amounts falling due after one year (9) 250,924 Net assets 200,742 Funds Unrestricted funds 200,742 Restricted funds - Total funds 200,742 |
2022 Restricted £ - - 1,283 24,105 25,388 25,388 25,388 - - - - - - - |
2022 Total £ 385,882 385,882 7,675 100,452 108,127 42,343 42,343 65,784 451,666 250,924 200,742 200,742 - 200,742 |
restated 2021 Total £ 388,000 388,000 5,023 70,183 75,206 35,651 35,651 39,555 427,555 260,525 167,030 167,880 - 167,880 |
|---|---|---|---|
The financial statements were approved by the board of trustees on 11/5/23
Sarah Hey (Trustee)
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Early Years @ Lightcliffe
Notes to the accounts
for the year ended 31 August 2022
1 Accounting policies
Basis of accounting
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
The basis of accounting has been changed from receipts and payments basis to accruals basis. This has meant that a number of adjustments have been made to the comparative figures to include fixed assets, debtors and creditors and long term liabilities. An analysis of the amendments has been provided in the notes.
Going concern
The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.
Incoming resources
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.
Grants and donations
Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.
Donated goods for resale are valued at the amount actually realised upon their sale.
Donated assets, facilities or services are valued at their estimated value to the charity. This is the price that the charity estimates it would pay in the open market for equivalent items; or services and facilities of equivalent utility to the charity.
Expenditure and liabilities
Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.
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.
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Early Years @ Lightcliffe
Notes to the accounts
for the year ended 31 August 2022
1 Accounting policies continued
Tangible fixed assets
Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows:
Freehold land: nil Freehold buildings: over 50 years Furniture and Fittings: over 4 years
Pensions
The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.
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.
Leases
Rents under operating leases are charged on a straight line basis over the lease term or to an earlier date if the lease can be determined without financial penalty.
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Early Years @ Lightcliffe
Notes to the accounts continued
for the year ended 31 August 2022
| restated | |||||
|---|---|---|---|---|---|
| **2 ** | Grants | 2022 | 2022 | 2022 | 2021 |
| Unrestricted | Restricted | Total | Total | ||
| funds | funds | funds | funds | ||
| £ | £ | £ | £ | ||
| Calderdale Met. Borough Council (CMBC) | - | 106,879 | 106,879 | 89,008 | |
| HMRC - Coronavirus Job Retention Scheme | - | - | - | 3,525 | |
| CMBC - Small Business Grant Fund | - | - | - | 5,000 | |
| Brodstock Community Support Fund | - | 250 | 250 | - | |
| - | 107,129 | 107,129 | 97,533 | ||
| **3 ** | Staff costs and numbers Gross salaries Social security costs Employment allowance Pensions |
2022 £ 156,233 7,328 (5,516) 2,155 |
restated 2021 £ 113,488 5,016 (4,553) 1,707 |
||
| 160,200 | 115,658 | ||||
| **4 ** | Defined contribution pension scheme Costs of the scheme to the charity for the year Amount of any contributions outstanding at the year end restated Restricted funds Balance b/f Incoming £ £ CMBC - Early Education Funding - 100,741 CMBC - Inclusion Funding - 6,138 Brodstock Comm. Support Fund - 250 The average number of employees during the year was 10, being 9.9, 6.8 FTE). There were no employees with emoluments above |
2022 2021 £ £ 2,155 1,707 331 329 Outgoing Transfers Balance c/f £ £ £ 100,741 - - 6,138 - - 250 - - an average of 7.2 full time equivalent (2021: £60,000. |
|||
| - | 107,129 | 107,129 | - | - |
Purpose of restriction
Fund name
CMBC - Early Education Funding For the supply of free early years provision for 2 to 4 year olds CMBC - Inclusion Funding To support early years providers in meeting the needs of individual children
To support early years providers in meeting the needs of individual children with Special Educational Needs
Brodstock Comm. Support Fund For purchase of new sporting/musical resources
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Early Years @ Lightcliffe
Notes to the accounts continued
for the year ended 31 August 2022
| 5 6 7 8 **9 ** |
Tangible assets Cost £ £ At 1 September 2021 - 300,000 Additions 5,176 - At 31 August 2022 5,176 300,000 Depreciation At 1 September 2021 - 12,000 Charge for year 1,294 6,000 At 31 August 2022 1,294 18,000 Net book value At 31 August 2022 3,882 282,000 At 31 August 2021 - 288,000 Debtors and prepayments Debtors Prepayments Cash at bank and in hand Cash at bank Cash in hand Creditors and accruals Bank loans and overdrafts Amounts received on account for contracts / performance related grants Accruals Taxation and social security Other creditors Creditors and accruals Bank loans and overdrafts Freehold Buildings Fixtures and Fittings |
£ 100,000 - 100,000 - - - 100,000 100,000 2022 £ 4,945 2,730 7,675 2022 £ 100,440 12 100,452 2022 £ 15,451 24,880 1,080 581 351 42,343 2022 £ 250,924 250,924 Freehold Land |
Total £ 400,000 5,176 405,176 12,000 7,294 19,294 385,882 388,000 2021 £ 3,546 1,477 5,023 2021 £ 70,171 12 70,183 2021 £ 15,055 17,953 720 1,594 329 35,651 2021 £ 260,525 260,525 |
|---|---|---|---|
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Early Years @ Lightcliffe Notes to the accounts continued for the year ended 31 August 2022
10 Related party transactions
Trustee expenses
No trustee received any expenses during this year or the previous year.
Trustee remuneration and benefits
| Name of trustee or related party Legal authority Carly Durrans Governing document |
2022 £ 1,838 1,838 |
2021 £ 1,026 1,026 |
|---|---|---|
Reason for remuneration
Carly is a parent member trustee and is paid for bookkeeping work.
No trustee received any other remuneration or benefit during this or the previous year.
Remuneration and benefits received by key management personnel
The total employee benefits received by key management personnel were £38,811 (previous year: £29,758).
11 Restatement of prior year figures due to change in accounting basis
As a result of the change in the basis of accounting from receipts and payments to accruals, there have been a number of adjustments made to the comparative figures, analysed below.
| Effect of change on Statement of Financial Activities Grants Original figure in statutory accounts, year ended 31 Aug 2021 Add deferred income (Aug 2020 year end) Deduct deferred income (Aug 2021 year end) Restated total Fees Original figure in statutory accounts, year ended 31 Aug 2021 Deduct fees owed (Aug 2020 year end) Add fees owed (Aug 2021 year end) Restated total Total expenditure Original figure in statutory accounts, year ended 31 Aug 2021 Deduct creditors (Aug 2020 year end) Add creditors (Aug 2021 year end) Add debtors (Aug 2020 year end) Deduct debtors (Aug 2021 year end) Deduct mortgage capital expenditure Add depreciation expense Restated total |
2021 Unrestricted funds £ 5,000 - - 5,000 £ 98,207 (2,646) 3,546 99,107 £ 80,904 (2,744) 1,057 542 (931) (4,866) 6,000 79,962 |
2021 Restricted funds £ 97,884 12,604 (17,955) 92,533 £ - - - - £ 93,290 (1,307) 1,585 813 (1,397) - - 92,984 |
2021 Total funds £ 102,884 12,604 (17,955) 97,533 £ 98,207 (2,646) 3,546 99,107 £ 174,194 (4,051) 2,642 1,355 (2,328) (4,866) 6,000 172,946 |
|---|---|---|---|
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Early Years @ Lightcliffe Notes to the accounts continued for the year ended 31 August 2022
11 Restatement of prior year figures due to change in accounting basis continued
Effect of change on fund balances as reported at 31 Aug 2021
| Original fund balances brought forward as at 31 Aug 2021 Add net book value of fixed assets as at 31 Aug 2020 Deduct mortgage as at 31 Aug 2020 Add prepayments Add fees owed Deduct grant funding in advance Deduct accruals Restated fund balances brought forward as at 31 August 2021 |
2021 Unrestricted funds £ 22,333 394,000 (280,000) 1,939 2,646 - (4,329) 136,589 |
2021 Restricted funds £ 12,910 - - (584) - (12,604) 278 - |
2021 Total funds £ 35,243 394,000 (280,000) 1,355 2,646 (12,604) (4,051) 136,589 |
|---|---|---|---|
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Early Years @ Lightcliffe
Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 August 2022
| restated 2022 2021 Unrestricted Unrestricted funds funds £ £ Income Grants - 5,000 Fees 141,782 99,107 Fundraising 4,526 1,474 Room Hire 8,731 5,277 Bank interest 59 - Other income 347 395 Total income 155,445 111,253 Expenditure Salaries and NI 78,473 39,216 Casual staff 1,075 342 Payroll fees - 372 Materials, activities and trips 4,156 700 Food 5,661 1,511 Stationery and administration fees 241 754 Telephone 485 364 Independent Examination 572 287 Training 413 176 Uniforms 589 12 Advertising and recruitment costs 1,676 124 Repairs and maintenance 2,050 11,997 Fundraising expenses 1,576 202 Bank charges 211 262 Computer consumables 86 132 Toddler expenses - 61 Cleaning 3,786 418 Equipment 76 355 Membership and subscriptions 1,573 128 Insurance 1,411 999 Mortgage interest repayments 6,595 12,376 Utilities 3,649 3,174 Depreciation 7,294 6,000 Staff gifts 935 - Total expenditure 122,583 79,962 Net income / (expenditure) 32,862 31,291 Fund balances brought forward 167,880 136,589 Fund balances carried forward 200,742 167,880 |
2022 Restricted funds £ 107,129 - - - - - 107,129 81,727 953 - 3,539 - 253 430 508 367 523 1,486 1,817 - 187 184 - 3,358 68 1,394 1,251 5,849 3,235 - - 107,129 - - - |
restated 2021 Restricted funds £ 92,533 - 451 - - - 92,984 76,442 513 558 2,277 2,266 1,130 547 431 265 19 186 451 - - 199 92 626 532 191 1,498 - 4,761 - - 92,984 - - - |
2022 Total funds £ 107,129 141,782 4,526 8,731 59 347 262,574 160,200 2,028 - 7,695 5,661 494 915 1,080 780 1,112 3,162 3,867 1,576 398 270 - 7,144 144 2,967 2,662 12,444 6,884 7,294 935 229,712 32,862 167,880 200,742 |
restated 2021 Total funds £ 97,533 99,107 1,925 5,277 - 395 204,237 115,658 855 930 2,977 3,777 1,884 911 718 441 31 310 12,448 202 262 331 153 1,044 887 319 2,497 12,376 7,935 6,000 172,946 31,291 136,589 167,880 |
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