- Treasurers Report AGM 7/11/2022
In the last financial year (September 2021 - August 2022), the preschool have had a quiet year with lower attendance and less grant funding. In addition, rising costs due to inflation and a significant rise in NLW has caused the preschool to cover this loss with its cashflow. As of the 31st August 2022 the current account balance is secure, however, this will need to be reviewed to plan future cashflow.
The accounts for 2021/2022 have been reviewed with the independent examiner. The examiner confirms that the accounts have been presented clearly and there are no discrepancies. The examiners report has been provided.
Receipts
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Donations - We have received a generous donation from Gt. Finborough Village Jubilee celebrations but no applications were made to any external contributors e.g British Sugar.
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Fundraising- We welcomed back our annual Christmas Fair this year and continued with our Easter Trail and Sports Day events which totalled £2,390. Also, the Easy Fundraising website continues to be actively used and a steady flow of funds has been received. Perhaps a gentle reminder to current/new families to use this website?
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Funding & Fees- Grant funding has dramatically fallen by £8,252 as there were less children 3yrs+ enrolled at the preschool. Luckily, fees have risen as there were more children under 3yrs who do not qualify for funding yet. Also, several children exceed their weekly 15hrs of funding therefore top up with fees.
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Other - This includes uniform revenue, bank interest from our savings account, the sale of preloved preschool items, contributions from Pettiward Hall for the new microwave and Christmas meal payments from the committee.
Payments
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Salaries - Due to the rise of NLW from £8.91 (1/4/21) to £9.50 (1/4/22), a rise of 59p, salaries have again significantly increased - even though less children were enrolled than the year before.
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Rents and Rates - A rise in rent as Toddler group sessions have returned to the main hall which incurs an extra charge (£9.50 per session). The previous year had reductions due to snow days and covid closures.
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Premises - No major work has taken place at the preschool room except general maintenance and compulsory Pat testing.
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Catering Costs - This cost is near identical to the previous year. However, with lower attendance than the previous year it highlights the rise in food costs.
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Consumables & Equipment - We have reduced our equipment expenditure this year and only purchased the consumables we need. However, we have still encouraged purchases on learning and development and replacing worn and broken items.
Office - Consistent costs which include mobile, printer ink subscription, Plusnet, McAfee, Tapestry, Microsoft Office subscription and stamps.
Other - This includes staff development training, purchase of uniform for staff and children and insurance.
Balance Sheet
TSB account ending 968 ends the year with a lower closing balance. In previous years, it has been our goal to reduce this balance which we achieved with our two year spending plan. However, with the the significant rise in NLW over the last few years and rise in living costs we have seen our costs rise and a reduction in grant funding due to low pupil attendance. This has had a detrimental effect on our current account and unfortunately will continue to within the next 12 months.
With a loss of £11,377 we can see our greatest cost is salaries (a rise of £6,524) which is no longer covered by our receipts. I advise the officers to review this cost and to consider the next rise in NLW in April 2023. Can staff hours be reduced?
Rent will remain at the same rate for another 12months and i recommend purchases on essential items only.
To help boost our revenue i would suggest seeking donations from local businesses, and reviewing the fees. Please compare the preschool fees to other local preschools. We may be underselling ourselves!
We end the year with payments dramatically exceeding receipts. Now is the time to review all costs.
Savings Account (TSB account ending 260)
This account meets the needs of the Reserve policy adopted on the 20/05/2019. It is an account with a designated fund to meet redundancy liabilities and an emergency general contingency reserve equal to one terms (one-third of annual) total expenditure.
Inde ndent Examinerfs Re ort to the trustees ol Great Finborou h & Buxhall Under 5's I report on the accounts for the year ended 31st August 2022 which are Set out on pages 2 & 3. Respe¢th responsibilities ofthe trustses and the ex•mlner Charity law requires all charity trustees to prepare accounts for their charity. The trustees of registered charities must also prepare a trustees, annual report (the reportl. The report and accounts tell donors and others Interested in the work of the charity what the charity is set up to do. what it has done in the year and how it raised and spent its money. The role of the Sndependent examiner is to provide an independent scrutiny of the accounts. The examiner plays a part in maintaining public trust and confidence In charlties. The trustees of Great Flnborough & Buxhall Under 5's consider that an audit is not required for thi5 vear under sectlon 144121 of the Charities Act 2011 (the 2011 Act) and that an indep.endent examination is needed. It is my responsibilityto examine the accounts under section 145 of the 2011 Art,, fdlow the procedures latd down In the General Directions 8iven bythe Charty Commissloners sectlon 14515llbl of the 2011 Act,. and state whether partl¢ular matters have come to my attention. Basls of Independent Examinèrfs Statsment My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accountin8 records kept by the charity and comparison of the accounts presented with those records. It a150 includes consideration of anv unusual Items or disclosures in the accounts. and seeking explanations from the mana8ement committee concerning any such matters. The procedures yndertaken do not provide all the evidence that would be required In a full audit, and consequentty I do not express an audlt opinion on the accounts. Independent Examiner'5 Statement In connection with my examination, no matters have come to my attention: l. which 8lve me reasonable cause to believe that In any material respect the requirements to keep accounting records in accordance with s.130 of the 2011 Act,. or to prepare accounts which accord with these accounting records have not been met: or 2. to which, in my opinion, attention should be drawn In order to enable a proper understandlng of the accounts to be reached. Marti ers ACMI CGMA Chartered Management Accountant New Farm Granary Shelland IP14 3HX 17° Ortober 2022 Page I