Charity registration number 1095412
CYGNETS PRE-SCHOOL
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
CYGNETS PRE-SCHOOL
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Alexandra Reynolds- Chair Daniel Denaro- Treasurer from November 2021 Kitty Cole- Secretary Nicole Sheppard Jenna Micallef Jamie Awdry (Appointed 30 November 2021) Jordan Daykin (Appointed 10 January 2022)
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 - 13 |
CYGNETS PRE-SCHOOL
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2022
The trustees present their annual report and financial statements for the year ended 31 October 2022.
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 2022 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 an 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 Kitty Cole- Secretary Nicole Sheppard Jenna Micallef Gemma Price- Treasurer (Resigned 30 November 2021) Jamie Awdry (Appointed 30 November 2021) Jordan Daykin (Appointed 10 January 2022)
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CYGNETS PRE-SCHOOL
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022
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' report was approved by the Board of Trustees.
Alexandra Reynolds
Chair
5 June 2023
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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 2022.
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: 6 June 2023
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CYGNETS PRE-SCHOOL
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2022
| Unrestricted Unrestricted | Unrestricted Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income and endowments from: | |||
| Donations and legacies | 3 | 9,476 | 31,421 |
| Charitable activities | 4 | 306,302 | 279,972 |
| Other trading activities | 5 | 1,112 | 1,729 |
| Investments | 6 | 4 | - |
| Other income | 7 | 1,500 | 27,930 |
| Total income | 318,394 | 341,052 | |
| Expenditure on: | |||
| Raising funds | 8 | - | 2,568 |
| Charitable activities | 9 | 328,512 | 306,289 |
| Other | 13 | - | 34,279 |
| Total expenditure | 328,512 | 343,136 | |
| Net expenditure for the year/ | |||
| Net movement in funds | (10,118) | (2,084) | |
| Fund balances at 1 November 2021 | 35,682 | 37,766 | |
| Fund balances at 31 October 2022 | 25,564 | 35,682 |
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 2022
| Notes Fixed assets Tangible assets 15 Current assets Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2022 £ 487 27,821 28,308 (3,258) |
£ 514 25,050 25,564 25,564 25,564 |
2021 £ - 36,384 36,384 (702) |
£ - 35,682 |
|---|---|---|---|---|
| 35,682 | ||||
| 35,682 | ||||
| 35,682 |
The financial statements were approved by the Trustees on 5 June 2023
Alexandra Reynolds Chair
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022
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 amounts 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.
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.
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022
1 Accounting policies
(Continued)
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 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings 20% SL
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 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.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022
1 Accounting policies
(Continued)
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 payments 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.
1.10 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.
1.11 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 | |
| 2022 | 2021 | |
| £ | £ | |
| Donations and gifts | 2,226 | 253 |
| Grants receivable | 7,250 | 31,168 |
| 9,476 | 31,421 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022
3 Donations and legacies
(Continued)
| Grants receivable for core activities Wiltshire Council Wiltshire Council- Covid grant Bratton Parish Council Wiltshire Council University West England |
- - 250 - 7,000 7,250 |
6,703 20,000 700 3,765 - |
|---|---|---|
| 31,168 |
4 Charitable activities
| Charitable | Charitable | |
|---|---|---|
| Income | Income | |
| 2022 | 2021 | |
| £ | £ | |
| Sales within charitable activities | 60,574 | 65,901 |
| Services provided under contract | 222,834 | 194,207 |
| Ancillary trading income | 22,894 | 19,864 |
| 306,302 | 279,972 |
5 Other trading activities
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Fundraising events | 1,112 | 1,729 |
| Investments | ||
| Unrestricted | Unrestricted | |
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Interest receivable | 4 | - |
6 Investments
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2022
7 Other income
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Other income | 1,500 | 27,930 |
| Raising funds | ||
| **Total ** | Unrestricted | |
| funds | ||
| 2022 | 2021 | |
| £ | £ | |
| Fundraising and publicity | ||
| Seeking donations, grants and legacies | - | 1,519 |
| Other fundraising costs | - | 1,049 |
| Fundraising and publicity | - | 2,568 |
| - | 2,568 | |
| Charitable activities | ||
| Charitable | Charitable |
|
| Expenditure | Expenditure | |
| 2022 | 2021 | |
| £ | £ | |
| Staff costs | 257,177 | 234,720 |
| Consumables | 9,022 | 12,341 |
| Equipment | 7,880 | 9,545 |
| Lunch Money | - | 4,324 |
| 274,079 | 260,930 | |
| Share of support costs (see note 10) | 50,463 | 44,099 |
| Share of governance costs (see note 10) | 3,970 | 1,260 |
| 328,512 | 306,289 |
8 Raising funds
9 Charitable activities
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022
10 Support costs
| Support costs Governance costs £ £ Depreciation 128 - Telephone 3,281 - Printing and stationery 400 - Admin 4,606 - Staff 8,836 - Training 5,725 - Rent and rates 19,693 - WWDC & WTC 3,062 - Insurance 2,282 - Membership and subscriptions 2,077 - Advertising 373 - Legal and professional - 80 Margaret Hart - - Independent examination - 3,890 50,463 3,970 Analysed between Charitable activities 50,463 3,970 |
2022 Support costs Governance costs £ £ £ 128 - - 3,281 1,575 - 400 458 - 4,606 504 - 8,836 4,086 - 5,725 3,036 - 19,693 9,641 - 3,062 8,617 - 2,282 2,092 - 2,077 13,669 - 373 421 - 80 - - - - 600 3,890 - 660 54,433 44,099 1,260 54,433 44,099 1,260 |
2021 £ - 1,575 458 504 4,086 3,036 9,641 8,617 2,092 13,669 421 - 600 660 |
|---|---|---|
| 45,359 | ||
| 45,359 |
Governance costs includes payments to the independent examiner of £1,444 (2021- £660) for accountancy fees.
11 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
12 Employees
The average monthly number of employees during the year was:
| 2022 | 2021 |
|---|---|
| Number | Number |
| 21 | 21 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022
| 12 Employees Employment costs Wages and salaries Social security costs Other pension costs |
(Continued) 2022 2021 £ £ 246,923 211,123 4,963 14,573 5,291 9,024 257,177 234,720 |
(Continued) 2022 2021 £ £ 246,923 211,123 4,963 14,573 5,291 9,024 257,177 234,720 |
|---|---|---|
| 234,720 |
The key management personnel of the charity comprise the trustees, and the Manager. The total remuneration of key management personnel during the year was £21,649, (2021; £21,107)
There were no employees whose annual remuneration was more than £60,000.
13 Other
| Other expenditure | Total £ 2022 - - |
Total £ 2021 34,279 |
|---|---|---|
| 34,279 |
14 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
15 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Fixtures and fittings | |
| £ | |
| Cost | |
| Additions | 642 |
| At 31 October 2022 | 642 |
| Depreciation and impairment | |
| Depreciation charged in the year | 128 |
| At 31 October 2022 | 128 |
| Carrying amount | |
| At 31 October 2022 | 514 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2022
15 Tangible fixed assets
(Continued)
| 16 Debtors Amounts falling due within one year: Other debtors 17 Creditors: amounts falling due within one year Other taxation and social security Trade creditors Other creditors Accruals and deferred income |
2022 £ 487 2022 £ 261 2,175 162 660 3,258 |
2021 £ - |
|---|---|---|
| 2021 £ - 42 - 660 |
||
| 702 |
18 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 £5,291 (2021 - £9,024).
19 Related party transactions
There were no disclosable related party transactions during the year (2021 - none).
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