2023-07-31-accounts - Broadlands Pre-School Centre

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Registration Number: 02919558

Registered Charity No: 1055656

Trustees Report and Financial Statements

for the Year Ended 31 July 2023

for

Broadlands Pre-School Centre

Contents of the Financial Statements for the Year Ended 31 July 2023

	Page
Legal and Administrative Information	1
Trustees Report	2-3
Independent Examiner’s Report to the Trustees	4
Statement of Financial Activities	5
Balance Sheet	6
Notes to the Financial Statements	7-11

Broadlands Pre-School Centre Legal and Administrative Information for the Year Ended 31 July 2023

STATUS

Broadlands Pre-School Centre is a registered charity (Registration No. 1055656). It is also a registered company, limited by guarantee without share capital under the Companies Act (Registered No: 02919558)

The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those articles, the members of the Management Committee are elected at the AGM for an unspecified period, subject to ratification at each.

TRUSTEES:	Charlotte Elliot (Safeguarding & HR)
	Yuliya Firmino Ruiz (Treasurer)
	Clare Hope (Chair from October 2023)
	Victoria Newman
	John Quentin (Secretary) – appointed 8 August 2022
	Emma Stagg
	Tom Stagg (Finance)
	Jill Louise Wainwright (Chair to October 2023)
REGISTERED NUMBER:	02919558
REGISTERED CHARITY NO:	1055656
SECRETARY:	John Quentin – appointed 8 August 2022
REGISTERED OFFICE:	Burrows Field
	Moorend Grove
	Leckhampton
	Cheltenham
	Gloucestershire
	GL53 0EX
MANAGER	K L Pritchard
INDEPENDENT EXAMINER:	Andrew R Cook
	Chartered Accountant
	Northfield House
	Shurdington Road
	Bentham
	Gloucestershire
	GL51 4UA
BANKERS:	CAF Bank Ltd
	25 Kings Hill Avenue
	Kings Hill
	West Malling
	Kent
	ME19 4JQ

Broadlands Pre-School Centre Trustees Report for the Year Ended 31 July 2023

The trustees present their annual report with the financial statements of the company for the year ended 31 July 2023

OBJECTIVES AND ACTIVITIES

The objective of the company under review is to advance the education of children below the compulsory school age by the provision of a play centre for such children.

The Board of Trustees confirm that they have complied with their duty in Section 4 of the Charities Act 2006 to have due regard to public benefit guidance by the Charity Commission for England & Wales.

ACHIEVEMENTS AND PERFORMANCE

Broadlands preschool during 2022-2023 academic year had 49 children enrolled. The setting has been full on most days with only few spaces untaken for some afternoon sessions. Broadlands is proving to be a popular choice among families and had many children on waiting list.

The setting hosted successful Christmas fair and a summer Sports day. We have also introduced PE sessions which is a multi-skills activity session. This has been very popular among children and we held it once a week. A decision was made to cancel music sessions as it became clear it was no longer holding children’s attention, and little was being gained from the sessions. We held some open reading sessions for parents/ grandparents to come along and read to the children which was well received by those who were able to attend. Staffing has been consistent during the year . October saw our long awaited OFSTED inspection which went very well. The inspector commented on how much the setting had improved and how the children were all happy, settled and progressing well thanks to the care and education the staff provide. The setting received a GOOD rating with a number of outstanding qualities.

RESERVES AND FINANCIAL REVIEW

Financial performance of Broadlands in 2022-2023 was solid. With the profit of £2,210 it has outperformed the budget and generated higher profit than the year before. The actual amount of hours staff worked were 1.5 hours less per week than was forecasted in the budget. This overall resulted in significantly less expenses. Moreover, a few refunds took place this year such as refund for overpaid rent, cleaning refund and consortium refund. In addition, government support scheme with energy bills meant that we haven’t spent as much on bills as forecasted. Our expenses have also reduced due to reduction in cleaning costs as some cleaning is undertaken by staff and also bank charges are now significantly outweighed by interest income from the risen interest rates on savings.

During the year we’ve made improvements to the setting by replacing the floors as well as undertaking major upgrade to the garden and renewing playroom equipment.

Due to rising cost of living the Committee voted in favour of substantial pay rise to the staff. Staff salaries historically have been lower than average for the industry for the setting and with high inflation and difficulty to retain and hire new staff it was agreed that investing into staff wellbeing was necessary.

The setting does currently have reserves that have built up gradually over previous years of £100,674. The reserves policy states that a reserve should be kept equivalent to six months running costs or the costs of closure, whichever is greater. Six months running costs are currently £50k. The intention of the board is to use the surplus to make improvements to the setting. Such as for 2023-2024 it is planned to purchase airconditioning unit for indoors and a gazebo for outdoors that can be used during very hot weather to keep staff and children comfortable and safe.

TRUSTEES

Company and Charity law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing those financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

Broadlands Pre-School Centre Trustees Report for the Year Ended 31 July 2023

The trustees have overall responsibility for ensuring the charity has appropriate systems of controls, financial and otherwise. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INDEPENDENT EXAMINER

The trustees recommend Andrew R Cook, Chartered Accountant, remains in office to carry out an independent review of the accounting records and provide an independent opinion.

This report was approved by the Trustees on………………………………… and signed on their behalf by

........................................................................ Clare Hope – Chair of the Board of Trustees

Date: .............................................

Independent Examiner’s Report to the trustees of Broadlands Pre-School Centre For the year ended 31 July 2023

I report to the charity trustees on my examination of the unaudited accounts of the company for the year ended 31 July 2023

Responsibilities and basis of report

As the charity’s trustees of the Company (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).

Having satisfied myself that the accounts of the Company are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination, I have followed the Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act.

Independent Examiners Statement

I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that:

accounting records were not kept in accordance with section 386 of the Companies Act 2006; or
the accounts do not accord with such records; or
the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 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; or
•the accounts have not been prepared in accordance with the Charities SORP (FRS102).

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

Andrew R Cook ACA Chartered Accountants Shurdington Road Bentham Gloucestershire GL51 4UA

Date:

Broadlands Pre-School Centre Statement of Financial Activities For the Year Ended 31 July 2023

Income and expenditure		Unrestricted)	Unrestricted
		Funds)	Funds
	Notes	31.07.23	31.07.22
		£)	£
Income from:
Charitable activities	2	111,415)	100,905
Other trading activities	3	3,854)	1,802
Investments	4	558)	29)
		______)	______
Total		115,827)	102,736
		______)	______
Expenditure on:
Raising funds	5	170)	519
Charitable activities	6	113,447)	101,583
		______)	______
Total		113,617)	102,102
		______)	______
Net income and net movement in
funds		2,210)	634
Reconciliation of funds:
Total funds brought forward		98,464)	97,830
		______)	______
Total funds carried forward		100,674)	98,464
		=====)	=====

Continuing operations

None of the company's activities was discontinued during the above two financial years.

The statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 7 to 11 form part of these accounts.

The notes form part of these financial statements

Broadlands Pre-School Centre Balance Sheet At 31 July 2023

	Notes		Unrestricted		Unrestricted
			Funds		Funds
			31.07.23		31.07.22
FIXED ASSETS		£	£	£	£
Tangible assets	9		9,646		11,711
CURRENT ASSETS
Debtors	10	526		477
Cash at bank		93,019		91,242
		______		______
		93,545		91,719
CREDITORS
Amounts falling due within one year	11	2,517		4,966
		______		______
Net current assets			91,028		86,753
			______		______
NET ASSETS			100,674		98,464
			=====		=====
FUNDS
Unrestricted income funds			100,674		98,464
			=====		=====

For the year ending 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.

ON BEHALF OF THE BOARD:

………………………………………………………………

Yuliya Firmino Ruiz

Approved by the Board on ……………………………………….

Registered in England & Wales Company no : 029195

The notes form part of these financial statements

Broadlands Pre-School Centre Notes to the Financial Statements

for the Year Ended 31 July 2023

1. Accounting policies

Accounting convention

The financial statements have been prepared under the historical cost convention and on a going concern basis in accordance with 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 2015) – (Charities SORP (FRS 102) and Companies Act 2006.

Broadlands Pre-School Centre meets the definition of a public benefit entity under FRS 102.

The financial statements are presented in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. Comparatives for obligations under operating leases (Note 12) have been updated to comply with Charities SORP(FRS102).

Income

Turnover represents the amount received in respect of fees, donations, grants and fund-raising events gross of expenses during the year.

The charity receives government grants in respect of childcare. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

Income from investments is included in the year in which it is receivable.

Expenditure

Resources expended are recognised in the year in which they are incurred.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Staff costs are in accordance with H M Revenue and Customs legislation currently in force.

Pensions

The pension costs charged in the financial statements represent the contribution payable by the charity during the year. The regular cost of providing retirement pensions and related benefits is charged to the Statement of Financial Activities over the employees' service lives on the basis of a constant percentage of earnings using the government auto enrolment scheme.

Leasing

Rentals payable under operating leases are charged against income on a straight- line basis over the lease term.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognized at transaction value and subsequently measured at their settlement value.

Tangible fixed assets and depreciation

Tangible fixed assets costing more than £500 are capitalised at cost. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings – 5 years straight line

The notes form part of these financial statements

Broadlands Pre-School Centre Notes to the Financial Statements for the Year Ended 31 July 2023

Accounting policies (continued)

Taxation

The company is a registered charity and is exempt from taxation in accordance with the provisions of section 505(1) of the Income and Corporation Taxes Act 1988. The charity is not registered for VAT.

Going concern

The trustees have reviewed the ongoing future of the charity and consider that there are plans in place to continue the charitable company’s trustees’ operation. There are no material uncertainties that may cast significant doubt on the charitable company’s trustees’ ability to continue as a going concern.

Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

2. Charitable activities

2.	Charitable activities
		Unrestricted	Unrestricted
		Funds	Funds
		31.07.23	31.07.22
		£	£
	Local government childcare grants	78,758	74,458
	Fees receivable	32,657	26,447
		______	______
		111,415	100,905
		=====	=====
3.	Other trading activities
		Unrestricted	Unrestricted
		Funds	Funds
		31.07.23	31.07.22
		£	£
	Other fundraising activities	3,854	1,802
		=====	=====
4.	Investment income
		Unrestricted	Unrestricted
		Funds	Funds
		31.07.23	31.07.22
		£	£
	Deposit account interest	558	29
		______	______

The notes form part of these financial statements

Broadlands Pre-School Centre Notes to the Financial Statements for the Year Ended 31 July 2023

5. Raising funds

5.	Raising funds
		Unrestricted	Unrestricted
		Funds	Funds
		31.07.23	31.07.22
		£	£
	Costs of fundraising	170	519
		=====	=====
6.	Charitable activities
		Unrestricted)	Unrestricted
		Funds)	Funds
		31.07.23)	31.07.22
		£)	£
	Materials	5,401	1,555
	Activity costs	1,182	540
	Support costs – Note 7	106,864	99,488
		______	______
		113,447	101,583
		=====	=====
7.	Support costs
		Unrestricted)	Unrestricted
		Funds)	Funds
		31.07.23)	31.07.22
		£)	£
	Staff Costs	85,038	77,921
	Rent & Rates	2,748	3,874
	Insurance	1,223	1,125
	Telephone	538	643
	Printing, postage & stationery	319	279
	Repairs & renewals	396	686
	Light & heat	1,462	1,694
	Subscriptions & licences	365	360
	General expenses	1,671	1,129
	Garden expenses	2,297	455
	Cleaning and clothing	4,412	3,844
	Training	665	892
	Depreciation	3,034	2,750
	IT costs	533	1,446
	Professional fees	867	1,238
	Accountancy	1,236	1,056
	Bank charges	60	96
		______	______
		106,864	99,488
		=====	=====

The notes form part of these financial statements

Broadlands Pre-School Centre Notes to the Financial Statements for the Year Ended 31 July 2023

8 . Employees

Number of employees

The average monthly headcount was 6.7 staff (2022 – 7.6 staff), all were employed as Pre-School supervisors and staff.

Employment costs
	2022	2021
	£	£
Wages and salaries	83,920	68,806
Pension costs	1,118	660
	______	______
	85,038	69,466
	=====	=====

No employee earned more than £60,000 in the year. (2022 - NIL) None of the trustees received any remuneration in the year (2022 - NIL). The charity paid £219 for trustees’ indemnity insurance (2022 - £218) The trustees are considered to be the key personnel of the charity. 5 trustees were the parents of children attending the setting.

9. Tangible fixed assets

Fixtures and fittings £ COST At 1 August 2022 78,248 Additions 969 __ At 31 July 2023 79,217 _ DEPRECIATION At 1 August 2022 66,537 Charge for year 3,034 At 31 July 2023 69,571 ___ NET BOOK VALUE At 31 July 2023 9,646 =====) At 31 July 2022 11,711 =====)	Totals £ 78,248 969 __ 79,217 _ 66,537 3,034 *69,571* ___ 9,646 ===== 11,711 =====

The notes form part of these financial statements

Broadlands Pre-School Centre Notes to the Financial Statements for the Year Ended 31 July 2023

10. Debtors

		31.07.23	31.07.22
		£	£
	Prepayments and accrued income	526	477
		=====	=====
11.	Creditors: Amounts falling due within one year
		31.07.23	31.07.22
		£	£
	Other creditors	1,329	1,075
	Accrued expenses	1,188	3,891
		______	______
		2,517	4,966
		=====	=====

12. Obligations under operating leases

Following a rent review, the rent payable from 01 December 2021 to 30 November 2031 was fixed at £5,000 per annum, discounted at 65% for 5 years from 2022.

At 31 July 2023 the charity had annual commitments under non-cancellable operating leases as follows:

	Land and buildings	Land and buildings
	2023	2022
Operating leases which expire:	£	£
Within 1 year	1,750	3,750
Within 2 – 5 years	7,000	11,250
Over 5 years	33,750	-
	______	______
	42,500	15,000
	=====	=====

13. Capital commitments

There were no capital commitments at 31 July 2023 (31 July 2022 - NIL).

14. Company status

The company is registered under the Companies Act 2006 as a company limited by guarantee. The company claims exemption under Section 60 from using "limited" in its name under the conditions existing in Section 62. The members of the company are the trustees named on page 1. Every member of the company undertakes to contribute such amount as may be required (not exceeding £1) to the Company’s assets if it should be wound up while he or she is a member or within one year after he or she ceases to be a member, for payment of the company’s debts and liabilities contracted before he or she ceases to be a member and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves.

15. Going concern

The trustees have identified no material uncertainties that would affect the company’s ability to continue as a going concern. The trustees are planning for the future to ensure the company is ready to react to a changing environment.

The notes form part of these financial statements