Treasurer’s Report (April 2021 – March 2022)
AGM 18/10/22
Prepared by Ellen Brown
Income
The 2021 to 2022 financial year (April to March) was not a typical year for the Pre School with lower than average numbers of children following the Covid 19 pandemic. In April 2021, we opened a new Pre School session on Tuesday afternoons and this has been a success, however numbers in sessions on all days of the week have been significantly lower than prior to the pandemic. Income from fees and Free Early Education Funding totalled just over £52,500 which was slightly less than the previous year. Income in both 2020/21 and 2021/22 was significantly lower than prior to the pandemic (income from fees and funding was almost £68,000 in 2019/20).
The majority of our income comes from the Free Early Education Entitlement. This is funding that is paid per child per hour for children claiming free childcare at a rate set by the Government/Cheshire East council. This funding rose by just 1.5% per child per hour in April 2021.
For the summer term of 2021, we averaged 16.4 children per session. This dropped to 8.6 children per session for the autumn term of 2021 following the departure of the older children to primary school, and rose to 12.3 children per session by the end of the spring 2022 term.
We are thankful to parents for snack donations of £277 which covered just over half of our snack costs. We received a banking switch incentive of £1,500 for switching our bank account to the Cooperative bank. Fundraising and uniform sales brought in a further £269.
Total income: £54,788
Expenditure
We kept tight control of our expenditure as we anticipated that it would take some time for our income to return to pre-pandemic levels, however our main expenses are wages and rent which saw the following increases:
-
Rent costs increased due to the addition of the Tuesday afternoon session.
-
In April 2021, the National Living Wage rose by 2.2% and staff wages were increased accordingly.
Total expenditure: £60,511
Loss for the year: -£5,723
This loss was expected and more than covered by the remainder of the covid grants received the previous year.
Reserves
Our reserves policy states that we should retain £32,000 in reserves. This is based on our total cash assets at 1[st] August each year once all payments have gone in/out for that academic year.
On 1[st] August 2022, total cash assets were £37,780 (after deduction of the August wage liability). The excess will be used to support us this year whilst numbers continue to be lower than average.
Whirley Pre School Group Profit and Loss Statement April 2021 - March 2022
| INCOME | 2021-22 | 2020-21 | ||||
|---|---|---|---|---|---|---|
| Free Early Education Funding | £39,373 | £47,012 | ||||
| 1:1 Funding (SEN) | N/A | £2,160 | ||||
| Covid top up to funding | N/A | £5,139 | ||||
| Fees | £12,957 | £7,242 | ||||
| Fees: ad hoc | £233 | £0 | ||||
| Fees: registration | £90 | £130 | ||||
| WRFU Milk Grant | £87 | £45 | ||||
| Bank interest | £1 | £14 | ||||
| Snack donations | £277 | £375 | ||||
| Discretionary grant | N/A | £7,500 | ||||
| Banking switch incentive | £1,500 | |||||
| £54,519 | £69,618 | |||||
| Fundraising: | ||||||
| Easter raffle | N/A | £59 | ||||
| Donations | £5 | £130 | ||||
| Harvest donations | N/A | £42 | ||||
| Christmas cards | £12 | £52 | ||||
| Christmas decoration/craft sales | £106 | £70 | ||||
| Christmas raffle | £31 | £39 | ||||
| Preloved uniform sales | £11 | |||||
| Toy/book sales | £18 | |||||
| Easy Fundraising / Amazon smile / payp | £5 | £5 | ||||
| £186 | £397 | |||||
| Uniform | £83 | £0 | ||||
| £83 | £0 | |||||
| TOTAL INCOME | £54,788 | £70,015 | ||||
| EXPENDITURE | ||||||
| Wages | £43,532 | £43,886 | ||||
| Employer pension contributions | £381 | £394 | ||||
| Rent | £11,106 | £8,749 | ||||
| Waste collection | £520 | £510 | ||||
| Equipment & craft | £1,192 | £1,639 | ||||
| Snacks | £542 | £363 | ||||
| Insurance & ofsted fees | £967 | £950 | ||||
| Accountancy & payroll | £955 | £1,046 | ||||
| Staff training | £437 | £153 | ||||
| Disclosure & Barring checks | £48 | £104 | ||||
| Mobile phone | £0 | £0 | ||||
| Phone / broadband | £343 | £444 | ||||
| Advertising | £80 | £200 | ||||
| Misc | £221 | £212 | ||||
| Uniform | £24 | |||||
| £60,325 | £58,675 | |||||
| Events: | ||||||
| Leavers pencil cases | £52 | £64 | ||||
| Leavers party & sports day | £133 | £33 | ||||
| Halloween | £2 | |||||
| £186 | £99 | |||||
| TOTAL EXPENDITURE | £60,511 | £58,774 | ||||
| NET PROFIT / LOSS | -£5,723 | £11,241 |
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