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2020-08-31-accounts

COMPANY REGISTRATION NUMBER: 04834173 CHARITY REGISTRATION NUMBER: 01082574

Glebelands Pre-School and Out of School Ltd Company Limited by Guarantee Unaudited Financial Statements

31 August 2020

HOWELL & CO (LEICESTER) LTD

Chartered Certified Accountants

1 Bitteswell Road

Lutterworth Leics LE17 4EL

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 August 2020

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 August 2020.

Reference and administrative details

Registered charity name Glebelands Pre-School and Out of School Ltd Charity registration number 01082574 Company registration number 04834173 Principal office and registered Glebelands Pre-School office The Mobile Chancel Road Leicester LE4 2WF

The trustees

Mrs K Simmonds Mrs S Coley (Retired 22 September 2020) Mrs V Brewis Ms M Pepler Ms M Raithatha Ms C Martin (Retired 22 September 2020) Ms K Tailor Ms C Adamson Ms C Coomber (Appointed 13 October 2020) Ms A Elliott (Appointed 13 October 2020) Company secretary Mary Pepler Independent examiner Howell & Co (Leicester) Ltd 1 Bitteswell Road Lutterworth Leics LE17 4EL

Structure, governance and management

The charity is constituted as a company limited by guarantee, and is therefore governed by a memorandum and articles of association.

The charity is organised so that the trustees meet regularly to manage it's affairs.

The trustees are recruited from the parents of children attending or have attended the club. Co-opted members are also recruited from the local area.

- 1 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 August 2020

Objectives and activities

The charity's object and it's principal activity is that of providing pre-school play, education, care facilities and training.

Achievements and performance

The main area of charitable activity is the provision of play, education and care facilities to enhance the development and education of children under the statutory school age. The performance of the charity is outlined in the chairperson's and manager's reports.

In planning the activities for the year the trustees kept in mind the Charity Commission guidance on public benefit.

Financial review

In addition to it's fee income the charity is dependent upon grants from Leicester City Council. It is understood that this support will continue for the foreseeable future.

Through the prudent management of it's limited resources the charity carried forward funds of £204,988 to cover future expenditure against any reductions in income. This is an increase of £39,098 on the amount brought forward at the start of the year.

Plans for future periods

The charity plans to continue the activities outlined above in forthcoming years subject to satisfactory funding arrangements.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on 13 April 2021 and signed on behalf of the board of trustees by:

Mrs K Simmonds Trustee

- 2 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of Glebelands Pre-School and Out of School Ltd

Year ended 31 August 2020

I report to the trustees on my examination of the financial statements of Glebelands Pre-School and Out of School Ltd ('the charity') for the year ended 31 August 2020.

Responsibilities and basis of report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements 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 under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the 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 examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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.

Howell & Co (Leicester) Ltd Independent Examiner

1 Bitteswell Road Lutterworth Leics LE17 4EL

13 April 2021

- 3 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 August 2020

2020 2020 2019
Unrestricted
funds Total funds Total funds
Note £ £ £
Income and endowments
Grants 5 85,326 85,326 102,850
Charitable activities 6 53,407 53,407 67,419
Investment income 7 20,326 20,326 7
Other income 8 213 213 1,475
  
Total income 159,272 159,272 171,751
  
Expenditure
Expenditure on raising funds:
Costs of other trading activities 9 51 51 218
Expenditure on charitable activities 10,11 127,687 127,687 132,435
  
Total expenditure 127,738 127,738 132,653
  
  
Net income and net movement in funds 31,534 31,534 39,098
  
Reconciliation of funds
Total funds brought forward 204,988 204,988 165,890
  
Total funds carried forward 236,522

236,522

204,988


The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 7 to 14 form part of these financial statements.

- 4 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Statement of Financial Position

31 August 2020

2020 2019
Note £ £ £
Fixed assets
Tangible fixed assets 15 1 1
Current assets
Debtors 16 402 482
Cash at bank and in hand 261,794 232,016
 
262,196 232,498
Creditors: amounts falling due within one year 17 25,675 27,511
 
Net current assets 236,521 204,987
 
Total assets less current liabilities 236,522 204,988
 
Net assets 236,522 204,988
 
Funds of the charity
Unrestricted funds 236,522 204,988
 
Total charity funds 19 236,522

204,988


For the year ending 31 August 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on 13 April 2021, and are signed on behalf of the board by:

Mrs K Simmonds Trustee

The notes on pages 7 to 14 form part of these financial statements.

- 5 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 August 2020

2020 2019
£ £
Cash flows from operating activities
Net income 31,534 39,098
Adjustments for:
Dividends, interest and rents from investments (20,321)
Other interest receivable and similar income (5) (7)
Interest payable and similar charges 371 467
Accrued (income)/expenses (1,176) 4,276
Changes in:
Trade and other debtors 80 (253)
Trade and other creditors (660) (282)
 
Cash generated from operations 9,823 43,299
Interest paid (371) (467)
Interest received 5 7
 
Net cash from operating activities 9,457 42,839
 
Cash flows from investing activities
Dividends, interest and rents from investments 20,321
 
Net cash from investing activities 20,321
 
Net increase in cash and cash equivalents 29,778 42,839
Cash and cash equivalents at beginning of year 232,016 189,177
 
Cash and cash equivalents at end of year 261,794 232,016
 

The notes on pages 7 to 14 form part of these financial statements.

- 6 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 August 2020

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Glebelands Pre-School, The Mobile, Chancel Road, Leicester, LE4 2WF.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Funding

The organisation's activities are financed to a large extent from funding from Leicester City Council. This support is expected to continue into the foreseeable future and as a result the accounts have ben prepared on a going concern basis.

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for the particular restricted purposes within the obectives of the charity. Restrictions arise when specified by the donor or when funds are raised for the particular restricted purpose.

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Value added tax

Value added tax is not recoverable by the charity, and as such is included in the relevant costs in the Statement of Financial Activities.

Going concern

There are no material uncertainties about the charity's ability to continue.

Taxation

The charity is exempt from corporation tax on its charitable activities.

- 7 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2020

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

- 8 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2020

3. Accounting policies (continued)

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible fixed assets are stated at cost less depreciation.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures & fittings - 25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

- 9 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2020

3. Accounting policies (continued)

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

- 10 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2020

4. Limited by guarantee

The charity is constituted as a company limited by guarantee and is governed by a memorandum and articles of association.

5. Grants

Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Grants
Leicester City Council - Nursery
education grant 85,326

85,326

102,850

102,850


6. Charitable activities

Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Out of school club fees 35,173 35,173 50,744 50,744
Pre-school fees 12,879 12,879 11,340 11,340
Lunch club 4,514 4,514 3,595 3,595
Milk 841 841 1,015 1,015
Others 725 725
   
53,407 53,407 67,419 67,419
   

7. Investment income

Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Miscellaneous Income 20,321 20,321
Bank interest receivable 5 5 7 7
   
20,326 20,326 7 7
   
Other income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Fund raising 213 213 1,475 1,475
   
Costs of other trading activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Fundraising costs 51 51 218 218
   

8. Other income

9. Costs of other trading activities

- 11 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2020

10. Expenditure on charitable activities by fund type

Unrestricted Total Funds Unrestricted Total Funds
Funds 2020 Funds 2019
£ £ £ £
Pre-School & Out of School Club 122,082 122,082 127,563 127,563
Support costs 5,605 5,605 4,872 4,872
   
127,687

127,687

132,435

132,435


11. Expenditure on charitable activities by activity type

Activities
undertaken Total funds Total fund
directly Support costs 2020 2019
£ £ £ £
Pre-School & Out of School Club 122,082 122,082 127,563
Governance costs 5,605 5,605 4,872
   
122,082 5,605 127,687 132,435
   

12. Independent examination fees

2020 2019
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 500 500
 

13. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2020 2019
£ £
Wages and salaries 107,415 106,046
Employer contributions to pension plans 1,765 1,344
 
109,180

107,390


The average head count of employees during the year was 11 (2019: 13). The average number of full-time equivalent employees during the year is analysed as follows:

2020 2019
No. No.
Number of nursery staff 8 10
Number of staff - Admin & management 3 3
 
11 13
 

No employee received employee benefits of more than £60,000 during the year (2019: Nil).

- 12 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2020

14. Trustee remuneration and expenses

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.

15. Tangible fixed assets

Fixtures and
fittings Total
£ £
Cost
At 1 September 2019 and 31 August 2020 1,500 1,500
 
Depreciation
At 1 September 2019 and 31 August 2020 1,499 1,499
 
Carrying amount
At 31 August 2020 1 1
 
At 31 August 2019 1 1
 
16. Debtors
2020 2019
£ £
Trade debtors 193 482
Other debtors 209
 
402 482
 
17. Creditors: amounts falling due within one year
2020 2019
£ £
Trade creditors 3,385 3,181
Accruals and deferred income 21,691 22,867
Social security and other taxes 366
Other creditors 599 1,097
 
25,675 27,511
 

18. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £1,765 (2019: £1,344).

- 13 -

Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2020

19. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At At
1 September 31 August 20
2019 Income Expenditure 20
£ £ £ £
Unrestricted Fund 204,988 159,272 (127,738) 236,522
   
At At
1 September 31 August 20
2018 Income Expenditure 19
£ £ £ £
Unrestricted Fund 165,890 171,751 (132,653) 204,988
   
20. Analysis of net assets between funds
Unrestricted Total Funds
Funds 2020
£ £
Tangible fixed assets 1 1
Current assets 236,521 236,521
 
Net assets 236,522 236,522
 
Unrestricted Total Funds
Funds 2019
£ £
Tangible fixed assets 1 1
Current assets 204,987 204,987
 
Net assets 204,988 204,988
 
21. Analysis of changes in net debt
At
At 1 Sep 2019 Cash flows 31 Aug 2020
£ £ £
Cash at bank and in hand 232,016 29,778 261,794
  

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Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Management Information Year ended 31 August 2020

The following pages do not form part of the financial statements.

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Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Detailed Statement of Financial Activities

Year ended 31 August 2020

2020 2019
£ £
Income and endowments
Grants
Leicester City Council - Nursery education grant 85,326 102,850
 
Charitable activities
Out of school club fees 35,173 50,744
Pre-school fees 12,879 11,340
Lunch club 4,514 3,595
Milk 841 1,015
Others 725
 
53,407 67,419
 
Investment income
Miscellaneous Income 20,321
Bank interest receivable 5 7
 
20,326 7
 
Other income
Fund raising 213 1,475
 
 
Total income 159,272 171,751
 

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Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Detailed Statement of Financial Activities (continued)

Year ended 31 August 2020

2020 2019
£ £
Expenditure
Costs of other trading activities
Purchases 51 218
 
Expenditure on charitable activities
Purchases 1,768 3,687
Wages and salaries 107,415 106,046
Pension costs 1,765 1,344
Rent 1,000 1,200
Rates and water 197 191
Light and heat 1,647 3,967
Repairs and maintenance 3,427 5,501
Insurance 1,327 1,060
Other establishment 2,691 2,068
Motor vehicle expenses 1,390
Legal and professional fees 1,686 2,858
Other office costs 592 624
Other interest payable and similar charges 371 467
Training 711 785
Milk & refreshments 1,700 2,637
 
127,687 132,435
 
 
Total expenditure 127,738 132,653
 
 
Net income 31,534 39,098
 

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Glebelands Pre-School and Out of School Ltd

Company Limited by Guarantee

Notes to the Detailed Statement of Financial Activities

Year ended 31 August 2020

2020 2019
£ £
Costs of other trading activities
Fundraising costs
Fund raising purchases 51 218
 
 
Costs of other trading activities 51 218
 
Expenditure on charitable activities
Pre-School & Out of School Club
Activities undertaken directly
Play equipment & craft consumables 1,768 3,687
Staff costs 107,415 106,046
Pension costs 1,765 1,344
Rent 1,000 1,200
Rates & water 197 191
Light & heat 1,647 3,967
Premises repairs & maintenance 3,427 5,501
Insurance 1,327 1,060
Cleaning & security 1,125 1,145
Training 711 785
Milk & refreshments 1,700 2,637
 
122,082 127,563
 
Governance costs
Telephone 1,566 923
Computer software fees 1,390
Accountancy fees 500 500
Legal & professional fees 1,027 2,082
Subscriptions 159 276
Postage & stationery 592 624
Bank charges 371 467
 
5,605 4,872
 
 
Expenditure on charitable activities 127,687 132,435
 

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