Charity registration number 1095412
CYGNETS PRE-SCHOOL
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
CYGNETS PRE-SCHOOL
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Alexandra Reynolds- Chair Daniel Denaro- Treasurer Kitty Cole- Secretary Nicole Sheppard Jamie Awdry Jordan Daykin 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 2023
The trustees present their annual report and financial statements for the year ended 31 October 2023.
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 2023 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 along with regular reviews of the staffing structure to ensure the needs of the children are met alongside the costings incurred.
The fees and charges for parents are reviewed annually alongside the existing expenditure levels to try to balance the increasing costs faced by the charity. The review encapsulates wanting to remain financially sustainable alongside the visions and ethos of the charity, to provide the best support for all the children and families.
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 Kitty Cole- Secretary Nicole Sheppard Jenna Micallef (Resigned 30 November 2022) Jamie Awdry Jordan Daykin
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CYGNETS PRE-SCHOOL
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023
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
25 July 2024
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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 2023.
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: 9 August 2024
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CYGNETS PRE-SCHOOL
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income and endowments from: | |||
| Donations and legacies | 3 | 7,093 | 9,476 |
| Charitable activities | 4 | 317,878 | 306,302 |
| Other trading activities | 5 | 930 | 1,112 |
| Investments | 6 | 121 | 4 |
| Other income | 7 | - | 1,500 |
| Total income | 326,022 | 318,394 | |
| Expenditure on: | |||
| Charitable activities | 8 | 331,189 | 328,512 |
| Total expenditure | 331,189 | 328,512 | |
| Net expenditure and movement in funds | (5,167) | (10,118) | |
| Reconciliation of funds: | |||
| Fund balances at 1 November 2022 | 25,564 | 35,682 | |
| Fund balances at 31 October 2023 | 20,397 | 25,564 |
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 2023
| Notes Fixed assets Tangible assets 14 Current assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 16 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2023 £ 513 19,250 19,763 (1,190) |
£ 1,824 18,573 20,397 20,397 20,397 |
2022 £ 487 27,821 28,308 (3,258) |
£ 514 25,050 |
|---|---|---|---|---|
| 25,564 | ||||
| 25,564 | ||||
| 25,564 |
The financial statements were approved by the Trustees on 25 July 2024
Alexandra Reynolds Chair
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023
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 or grantors 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 2023
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 Computers 33% RB
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 2023
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 Income from donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 1,067 | 2,226 |
| Grants receivable | 6,026 | 7,250 |
| 7,093 | 9,476 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023
| 3 | Income from donations and legacies | (Continued) | |
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Grants receivable for core activities | |||
| Westbury Town Council | 1,500 | - | |
| Department for Education | 1,500 | - | |
| Bratton Parish Council | - | 250 | |
| Selwood Housing | 1,000 | - | |
| Wiltshire Community Foundation | 1,726 | - | |
| University West England | - | 7,000 | |
| Business growth | 300 | - | |
| 6,026 | 7,250 | ||
| 4 | Income from charitable activities | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Pre-school | |||
| Fees | 47,842 | 60,574 | |
| Services provided under contract | 208,848 | 222,834 | |
| Ancillary trading income | 61,188 | 22,894 | |
| 317,878 | 306,302 | ||
| 5 | Income from other trading activities | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Fundraising events | 930 | 1,112 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023
| 6 | Investments | ||
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Interest receivable | 121 | 4 | |
| 7 | Other income | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Other income | - | 1,500 | |
| 8 | Expenditure on charitable activities | ||
| Pre-school | Pre-school | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Direct costs | |||
| Staff costs | 262,852 | 257,177 | |
| Consumables | 17,765 | 9,022 | |
| Equipment | - | 7,880 | |
| 280,617 | 274,079 | ||
| Share of support and governance costs (see note 9) | |||
| Support | 44,231 | 50,463 | |
| Governance | 6,341 | 3,970 | |
| 331,189 | 328,512 | ||
| Analysis by fund | |||
| Unrestricted funds | 331,189 | 328,512 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023
9 Support costs allocated to activities
| Depreciation Telephone Printing and stationery Admin Staff and training Repairs and maintenence Rent and Rates Cleaning Insurance Membership and subscriptions Advertising Governance costs Analysed between: Pre-school 10 Net movement in funds The net movement in funds is stated after charging/(crediting): Depreciation of owned tangible fixed assets |
2023 £ 640 3,105 73 4,624 6,258 6,029 14,691 3,828 2,214 2,367 402 6,341 50,572 50,572 2023 £ 640 |
2022 £ 128 3,281 400 4,606 8,836 5,725 19,693 3,062 2,282 2,077 373 3,970 |
|---|---|---|
| 54,433 | ||
| 54,433 | ||
| 2022 £ 128 |
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:
| 2023 | 2022 |
|---|---|
| Number | Number |
| 23 | 21 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023
| 12 Employees Employment costs Wages and salaries Social security costs Other pension costs |
(Continued) 2023 2022 £ £ 253,008 246,923 4,536 4,963 5,308 5,291 262,852 257,177 |
(Continued) 2023 2022 £ £ 253,008 246,923 4,536 4,963 5,308 5,291 262,852 257,177 |
|---|---|---|
| 257,177 |
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, (2022; £21,649)
There were no employees whose annual remuneration was more than £60,000.
13 Taxation
| The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section | The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section | The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section | 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. | |||
| 14 | Tangible fixed assets | |||
| Fixtures and | Computers | Total | ||
| fittings | ||||
| £ | £ | £ | ||
| Cost | ||||
| At 1 November 2022 | 402 | - | 402 | |
| Additions | 1,274 | 916 | 2,190 | |
| At 31 October 2023 | 1,676 | 916 | 2,592 | |
| Depreciation and impairment | ||||
| At 1 November 2022 | 128 | - | 128 | |
| Depreciation charged in the year | 335 | 305 | 640 | |
| At 31 October 2023 | 463 | 305 | 768 | |
| Carrying amount | ||||
| At 31 October 2023 | 1,213 | 611 | 1,824 | |
| At 31 October 2022 | 514 | - | 514 |
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CYGNETS PRE-SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023
| 15 Debtors Amounts falling due within one year: Other debtors 16 Creditors: amounts falling due within one year Other taxation and social security Trade creditors Other creditors Accruals and deferred income 17 Retirement benefit schemes Defined contribution schemes Charge to profit or loss in respect of defined contribution schemes |
2023 £ 513 2023 £ 376 814 - - 1,190 2023 £ 5,308 |
2022 £ 487 |
|---|---|---|
| 2022 £ 261 2,175 162 660 |
||
| 3,258 | ||
| 2022 £ 5,291 |
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.
18 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 November 2022 Incoming resources Resources expended At 31 £ £ £ General funds 25,564 326,022 (331,189) Previous year: At 1 November 2021 Incoming resources Resources expended At 31 £ £ £ General funds 35,682 318,394 (328,512) |
October 2023 £ 20,397 |
|---|---|
| October 2022 £ 25,564 |
19 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
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