Charity registration number 1095412
CYGNETS PRE-SCHOOL
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
CYGNETS PRE-SCHOOL
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Alexandra Reynolds- Chair Daniel Denaro- Treasurer from (Appointed 24 November November 2021 2020) Kitty Cole- Secretary Nicole Sheppard Jenna Micallef Jamie Awdry (Appointed 1 November 2021) Jordan Daykin (Appointed 1 November 2021)
Charity number
1095412
Independent examiner
Katy Gooding Gooding Accounts Ltd 24 Warminster Road Westbury Wiltshire United Kingdom BA13 3PE
CYGNETS PRE-SCHOOL
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 12 |
CYGNETS PRE-SCHOOL
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2021
The trustees present their annual report and financial statements for the year ended 31 October 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution , the Charities Act 2011 and "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 2019 ).
Objectives and activities
The aims of the charity are to enhance the development and education of children primarily under the statutory school age by encouraging parents to understand and provide the needs of children through community groups and by:
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offering appropriate play, education and care facilities, family learning and extended hours groups, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means of ability;
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encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs in the local areas;
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instigating and adhering to and furthering the aims and objects of the Pre-school Learning Alliance.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Financial review
Although the charity has incurred a loss in the year ended 31 October 2021 the trustees are aware and are monitoring the increasing costs to ensure the charity can continue to trade. The trustees and management are looking at applying for grants to cover future costs.
Structure, governance and management
The charity is a n unincorporated charity and is a member of the the Pre-school Learning Alliance.
The trustees who served during the year and up to the date of signature of the financial statements were: Alexandra Reynolds- Chair
Daniel Denaro- Treasurer from November 2021 (Appointed 24 November 2020) Kitty Cole- Secretary Nicole Sheppard Jenna Micallef Laura Colborne (Resigned 24 November 2020) Sarah Pike (Resigned 24 November 2020) Martin Mangan (Resigned 31 October 2021) Gemma Price- Treasurer (Resigned 30 November 2021) Jamie Awdry (Appointed 1 November 2021) Jordan Daykin (Appointed 1 November 2021)
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CYGNETS PRE-SCHOOL
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
The overall management and control of the charity rest with the individual members of the charities management committee.
The minimum number of committee members shall be 5 and the maximum shall be 12, together with up to a further 3 co-opted members. The committee shall consist of:
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a chair, a treasurer and a secretary
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not less than 2 nor more than 9 other elected members and
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if the Committee decides it can co-opt up to 3 further members on the committee at any time after the AGM.
Not less than 60% of the Committee members, including co-opted members, shall at the time of election or cooption be Family Members of the child attending any group run by the Pre-school.
The trustees' r eport was approved by the Board of Trustees.
Alexandra Reynolds
Chair
6 September 2022
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CYGNETS PRE-SCHOOL
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF CYGNETS PRE-SCHOOL
I report to the trustees on my examination of the financial statements of Cygnets Pre-School (the charity) for the year ended 31 October 2021.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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 that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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 financial statements to be reached.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
Katy Gooding
Gooding Accounts Ltd 24 Warminster Road Westbury Wiltshire BA13 3PE United Kingdom
Dated: 7 September 2022
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CYGNETS PRE-SCHOOL
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2021
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2021 | 2020 | ||
| Notes | £ |
£ | |
| Income and endowments from: | |||
| Donations and legacies | 3 | 31,421 | 33,777 |
| Charitable activities | 4 | 279,972 | 195,942 |
| Other trading activities | 5 | 1,729 | 1,539 |
| Other income | 6 | 27,930 | 9,800 |
| Total income | 341,052 | 241,058 | |
| Expenditure on: | |||
| Raising funds | 7 | 2,568 | 10,083 |
| Charitable activities | 8 | 306,289 | 211,551 |
| Other | 12 | 34,279 | 13,365 |
| Total expenditure | 343,136 | 234,999 | |
| Net (expenditure)/income for the year/ | |||
| Net movement in funds | (2,084) | 6,059 | |
| Fund balances at 1 November 2020 | 37,766 | 31,707 | |
| Fund balances at 31 October 2021 | 35,682 | 37,766 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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CYGNETS PRE-SCHOOL
BALANCE SHEET
AS AT 31 OCTOBER 2021
| Notes Current assets Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Income funds Unrestricted funds |
2021 £ 36,384 (702) |
£ 35,682 35,682 35,682 |
2020 £ 37,766 - |
£ 37,766 37,766 37,766 |
|---|---|---|---|---|
The financial statements were approved by the Trustees on 6 September 2022
Alexandra Reynolds Chair
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2021
1 Accounting policies
Charity information
Cygnets Pre-School is an unincorporated charity.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
1 Accounting policies
(Continued)
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
1.7 Employee benefits
- The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
1 Accounting policies
(Continued)
1.8 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Donations and gifts | 253 | 8,482 |
| Grants receivable | 31,168 | 25,295 |
| 31,421 | 33,777 | |
| Grants receivable for core activities | ||
| Wiltshire Council | 6,703 | 7,000 |
| Wiltshire Council- Covid grant | 20,000 | 1,500 |
| Bratton Parish Council | 700 | - |
| Wiltshire Council | 3,765 | 4,000 |
| HMRC- Furlough | - | 3,657 |
| Other | - | 9,138 |
| 31,168 | 25,295 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
4 Charitable activities
| 5 6 7 |
Charitable Income Charitable Income 2021 2020 £ £ Sales within charitable activities 65,901 28,395 Services provided under contract 194,207 155,762 Ancillary trading income 19,864 11,785 279,972 195,942 Other trading activities UnrestrictedUnrestricted funds funds 2021 2020 £ £ Fundraising events 1,729 1,539 Other income UnrestrictedUnrestricted funds funds 2021 2020 £ £ Other income 27,930 9,800 Raising funds UnrestrictedUnrestricted funds funds 2021 2020 £ £ Fundraising and publicity Seeking donations, grants and legacies 1,519 8,445 Other fundraising costs 1,049 1,638 Fundraising and publicity 2,568 10,083 2,568 10,083 |
|---|---|
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
| 7 | Raising funds | (Continued) | |
|---|---|---|---|
| 8 | Charitable activities | ||
| Charitable | Charitable |
||
| Expenditur e | Expenditur e |
||
| 2021 | 2020 |
||
| £ | £ |
||
| Staff costs | 234,720 | 157,473 |
|
| Consumables | 12,341 | 7,230 |
|
| Equipment | 9,545 | 10,972 |
|
| Lunch Money | 4,324 | 2,492 |
|
| 260,930 | 178,167 |
||
| Share of support costs (see note 9) | 44,099 | 32,834 |
|
| Share of governance costs (see note 9) | 1,260 | 550 |
|
| 306,289 | 211,551 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
9 Support costs
| Support costs Governance costs £ £ Telephone 1,575 - Printing and stationery 458 - Admin 504 - Staff 4,086 - Training 3,036 - Rent and rates 9,641 - WWDC & WTC 8,617 - Insurance 2,092 - Membership and subscriptions 13,669 - Advertising 421 - Margaret Hart - 600 Independent examination - 660 44,099 1,260 Analysed between Charitable activities 44,099 1,260 |
2021 Support costs Governance costs £ £ £ 1,575 805 - 458 276 - 504 535 - 4,086 1,916 - 3,036 763 - 9,641 7,995 - 8,617 11,101 - 2,092 2,131 - 13,669 6,705 - 421 607 - 600 - 550 660 - - 45,359 32,834 550 45,359 32,834 550 |
2020 £ 805 276 535 1,916 763 7,995 11,101 2,131 6,705 607 550 - 33,384 33,384 |
|---|---|---|
Governance costs includes payments to t he independent examiner of £ 660 (2020- £ nil ) for accountancy fees.
10 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
11 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 |
|---|---|
| Number | Number |
| 21 | 18 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2021
| 11 Employees Employment costs Wages and salaries Social security costs Other pension costs |
(Continued) 2021 2020 £ £ 211,123 144,429 14,573 7,170 9,024 5,874 234,720 157,473 |
|---|---|
The key management personnel of the charity comprise the trustees, and the Manager . The total remuneration of key management personnel during the year was £ 21,107.
There were no employees whose annual remuneration was more than £60,000.
12 Other
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| Other expenditure | 34,279 | 13,365 |
| 34,279 | 13,365 |
13 Creditors: amounts falling due within one year
| Trade creditors Accruals and deferred income |
2021 £ 42 660 702 |
2020 £ - - - |
|---|---|---|
14 Retirement benefit schemes
Defined contribution schemes
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £9,024 (2020 - £5,874).
15 Related party transactions
There were no disclosable related party transactions during the year (2020 - none) .
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