Registration Number:  02919558 

Registered Charity No:  1055656 

**Trustees Report and Financial Statements** 

**for the Year Ended 31 July 2023** 

**for** 

**Broadlands Pre-School Centre** 



**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:**<br>|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|
|I**NDEPENDENT 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|



1 



**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. 

2 



**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: ............................................. 

3 



## **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: 

4 



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

|**Income and expenditure**||**Unrestricted) **|**Unrestricted**|
|---|---|---|---|
|||**Funds) **|**Funds**|
||**Notes**<br>|**31.07.23**|**31.07.22**|
|||**£) **|**£**|
|**Income from:**||||
|Charitable activities|<br>2|**111,415)**<br>|100,905|
|Other trading activities|3|**3,854)**<br>|1,802|
|Investments|4|**558)**|29)|
|||**______)**|______|
|**Total**||**115,827)**<br>|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 

5 



## **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 

6 



**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 

7 



**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 

8 



**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 

9 



**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<br>£<br>**COST**<br>At 1 August 2022<br>78,248<br>Additions<br>969<br>______<br>At 31 July 2023<br>79,217<br>______<br>**DEPRECIATION**<br>At 1 August 2022<br>66,537<br>Charge for year<br>3,034<br>______<br>At 31 July 2023<br>69,571<br>______<br>**NET BOOK VALUE**<br>At 31 July 2023<br>9,646<br>=====)<br>At 31 July 2022<br>11,711<br>=====)|Totals<br>£<br>78,248<br>969<br>______<br>79,217<br>______<br>66,537<br>3,034<br>______<br>69,571<br>______<br>9,646<br>=====<br>11,711<br>=====|
|---|---|



The notes form part of these financial statements 

10 



**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 

11