Company registration number: 04848315 Charity registration number: 1100327 Redwood Pre-school {A company limited by guaTantee} Annual Report and Financial Statements for the Year Ended 31 August 2021 Field Sullivan Limited 70 Royal Hill Greenwich SEIO 8RF
Redwood Pre•School Contents Reference and Administrative Detsi15 Trustees, Report Independent Examinerfs Report 3to4 Statement of Financial Activities Balance Sheet Statement of Cash Flows Notes to the Financial Statements 8t019
Redwood Pre-school Reference and Administrative Details Chalr Helen Fawbert Trustees Helen Fawbert Farzana Hussain Kirstie Macqueen Stacey Young Christopher Dell claren De silva Nicholas Hallbery Yu Jung Lee Anna Patriaa Yates Secretary Christopher Dell Charlty Reglstratlon Number 1100327 Company Registration Number 04848315 Registered Office The Bell Cent 3 Holloway Road London EII 4LD Principal Office The Bell Centre 3 Holloway Road London EII 4LD Independent Examiner Field Sullsvan Limited 70 Royal Hill Greenwich SEIO 8RF Page I
Redwood Pre-school Trustees. Report This report should be read in conjunction with the Annual Report for the year ended 31 August 2021. Public Benefit The view of the management committee is that the charity has had proper regard for its oblig3tion5, a5 registered charity. towards the Charity Commission's published guidance note5 On public benefits. In particular, the charity continues to be fully inclusive whereby all children of the relevant ages are eligible to join the pre-schools services including children with special educational needs and disabilities. The charity ha5 a150 continued its policy of sharing experiences with organisations of a similar nature. within reasonable geogrdphic bounds. Statement of Trustees. Responsibilities The trustees (who are also the directors for the purpose of company tawl are responsible for preparing the Annual Report and the financial statements in accordan with applicable law and regulations. Company law requires the trustees to prepare financial ststements for each financial year. Under that law the trustees must prepa the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice {Untted Kingdom Accounting Standards and applicable lawl. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditu. of the charitable company for that period. In preparing these financial statements, the trustees are required to: al select Suitable accounting policies and then apply them consistently: b} observe the methods and principles in the Charities SORP: c) make judgments and accounting estimates that are reasonable and prudent; dl state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements- and el prepare the financial statements on the going concern ba515 unless it is inappropriate to presume that the charitable company will continue to operate. The tnjstees are responsible for keeping adequate accouriting record5 that are sufficient to show and explain the charitable companrf5 transartions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Att 2006. They are also responsible for safeguardinE the assets of the company and hence for taking reasonable step5 for the prevention and detettion of fraud and other irregularities. The annual report was approved by the trustees of the charity on 9 May 2022 and signed on its behalf by: Helen Fawbert Chair and trustee Page 2
Redwood Pre-school Independent Examiner's Report to the trustees of Redwood Pre-school ("the Company") I report to the trustees (who are also Dlrertors for the purpose of company lawl on my examination of the financial statements of Redwood Pre-school I'the charitable company'l for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet. the Statement of Cash Flows and related notes. This report is made solely to the charFVs trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charitys trustees those matters l am required to state to them in thi5 report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity5 trustees as a body. for my work. for this report. or for the opinions I have formed. Responsibilities and basis of report As the charit15 trustees of Redwood Prtrschool you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2(K {'the 2LNJ6 AcV}. Having satisfied myself that the accounts of Redwood Pre-school are not required to be audited under Part 16 of the 2006 Art and are eligible for independent examination. I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Art 2011 1.the 2011 ACV). In carrying out my examination I have followed the Direttions given by the Charity Commission under sectton 145{51{bl of the 2011 Act. An independent examination does not involve gathering all the eviden that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently l express no opinion as to whether the financial statements present a 'true and fairf view and report is limited to those specific matters set out in the indepersdent examinerfs statement. Independent examine¢5 Statement Since Redwood Pre-school's 8r055 income exceeded £250.(m your examiner must be a member of a body listed in sertion 145 of the 2011 Att. I confirm that l am qualified to undertake the examination because l am a member of ICAEW which is one of the listed bodies. I have completed my examinathjn. I confirm that no matters have come to my attention in connertion with the examination giving me cause to believe: accounting records were not kept in respect of Redwood Pre-Sch(x)l as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records: or 3. the accounts do not comply with the accounting requirements of settion 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view, whKh is not a matter considered a5 part of an independent examination,- or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practi 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)]. Page 3
Redwood Pre-sthool Independent Examiner's Report to the trustees of Redwood Pre-school ("the Company") I have no concerns and have come acros5 no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understandin8 of the accounts to be reached. Timothy Sullivan FCA Field Sullivan Limited 70 Royal Hill Greenwich SEIO 8RF /£ Page 4
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Redwood Pre-school (Registration number: 04848315) Balance Sheet as at 31 August 2021 2021 2020 Note Fixed assets Tangible assets 12 5,295 6,286 Current assets Deblor5 13 22,633 253,704 14.022 291.080 Cash at bank and in hand 14 276.337 305.102 Creditors: Amounts falling due within one year 111.3931 111.6091 Net current assets 264.944 293,493 Net assets 270.239 299,779 Fund5 of the charity: Unrestricted income funds Unrestricted 270.239 299,779 Total funds 19 270,239 299.779 For the financial year ending 31 August 2021 the charity was entitled to exemption from audit under settion 477 of the Companies Act 2006 relating to small companies. Directors, responsibilities". The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476- and The directors acknowledge their responsibilities for complying with the requirements of the Art with respert to accounting records and the preparation of accounts. The financial statements on pages 5 to 19 were approved by the trustees. and authorised for issue on 9 May 2022 and signed on their behalf by= Helen Fawbert Chair and trustee The notes on pages 8 to 19 form an integral part of these financial statements. Page 6
Redwood Pre-school Statement of Cash Flows for the Year Ended 31 August 2021 2021 2020 Note Cash flows from operating artivities Net cash lexpenditure)/income (29.541) 9.117 Adjustments to cash flows from rbon-cash items Depreciation Investment income 3.501 {1.063} 7.505 {1,5671 (27,103) 15,055 Working capital adjustments Ilncreasel/decrease in debtor5 (Decreasel/increase in creditors (8.611) (216) 5,303 2.987 15 Net cash flows from operating actpiities 135,930) 23,345 Cash flows from investing acttvities Interest receivable and similar income 1.ffi3 {2.510) 1,567 18581 Purchase of tangible fed assets 12 Net cash flows from investing activities (1.4471 709 Net Idecrease}/increase in cash and cash equbvalents (37,377) 24,054 Cash and cash equivalents at I September 291,080 267.026 Cash and cash equivalents at 31 August 253.703 291.080 All of the cash flows are derived from continuin8 operations during the above two periods. The notes on pages 8 to 19 form an integral part of these financial statements. Page 7
Redwood Pre-school Notes to the Financial SLatements for the Year Ended 31 August 2021 I Charity status The charity is limited by Euarantee, incorporated in England & Wales. and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. The address of its registered office is: The Bell Centre 3 Holloway Road London EII 4LD These financial statements were authorised for issue by the trustees on 9 May 2022. 2 Accounting poliae5 Summary of significant accounting policies and key accounting estlmates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Statement of compliance The financial statements have been prepared in accordance with 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 IFRS 102) {effective l January 20191- (Charities SORP IFRS 102} - Second edition October 2019). the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021. They also comply wÉth the Companies Act 26 and Charities Att 2011. Basls of preparatlon Redwood Pre-school meets the definition of a public benefft entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Going concern The trustees consider that there are no material uncertainties about the charity's ability to continue as a goin8 concern nor any significant areas of uncertainty that affett the carrying value of assets held by the charity. Pa8e 8
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 Judgements and key sources of estimation uncertainty In the application of the charitrfs accounting policies, the trustees are required to make judgements, estimates and assumption5 about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimate5 and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ frorn these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the periods in which the estimate i5 reNll5ed where revisions affects only that period, or in the period of the revision and future periods where the revisions affects both current and future periods. Income and endowments All income is recognised once the charity has entitlement to the income. it is probable that the income will be received and the amount of the Tncome re1vable can be measured reliably. Donutions and legacies Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subjert to conditions that require a level of performance by the charity before the charity is entitled to the funds. the income is deferred and not recognised until either those conditions are fully met. or the fulfilment of those conditions 15 wholly within the control of the charity and it is probable that these conditions will be fijlfilled in the reporting period. Gronts receNoble Grants are reco8nised when the charity ha5 an entitlement to the funds and any conditions linked to the grants have been met. Where performance condrtions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released. Investment income Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure. it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that Cdtegory. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources. with central staff costs allocated on the basis of time spent. and depreciation charges allocated on the portion of the asseY5 use. Other sUPPOrt costs are allocated based on the spread of staff costs. Choritoble ortivthe5 Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those Costs of an indirert nature necessary to support them. Page 9
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 Government grants Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are reco8nised in income over the period in which the related costs are recogni5ed. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. Taxation The charity is considered to pass the tests set out in Pardgraph I Schedule 6 of the Finan Act 2010 and therefore it meets the definition of a char¥table company for UK corporation tax purposes. Accordingly. the charity is potentially exempt from taxation in respect of income or capital gains received within rategories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Sertion 256 of the Taxation of Chargeable Gains Act 1992. to the extent that such income or gain5 are applied exclusively to charttrdble purposes. Tangible fixed assets Individual fixed assets costing £500.00 or more are initially recorded at cost. less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Depreciation and amortisation Depreciation is provided on tanble fixed assets so as to write off the cost or valuation, less any estimated residual value. over their expected usefvl economic lrfe as follows: Asset class Office equipment Fixtures and fittings Depreciation method and rate straight line over 4 years straight line over 5 years Trade debtor5 Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised inttialty at the transaction price. They are subsequently measured at amorti5ed C05t using the effective interest method. les5 provision for impairment. A provision for the impairment of trade debtors is established when there is objecttve evidence that the charity will not be able to collect all amounts due according to the origin31 terms of the reIVableS. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-temi highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Page 10
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 Trade creditors Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period. to defer settlement of the creditor for at least twelve months after the reporting date. If there 15 an unconditional right to defer settlement for at least twelve months after the reporting date. they are presented as non-current liabilities. Trade creditor5 are recognised inwtially at the transaction price and subsequently measured at amortised cost using the effettive interest method. Fund structure Unrestricted income funds are general fund5 that a alIable for use at the trustees discretion in furtherance of the objectives of the charity. Pensions and other p05t retirement obligations The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructbve obligation to pay further contributions even rf the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are reco8nised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service. the excess is recognised as 3 prep3yment. 3 Voluntary income Unrestricted Totsl 2021 Totsl 2020 General Donations and legacies- Donation5 196 196 195 Grants, inclLEding capital grants- COVID grants Grants 46.262 378.361 46262 378.361 38.029 384.997 424.819 424.819 423.221 4 Income from charitable activities Unrestricted Total 2021 Totsl 2020 General Pre-school fees 103,524 103.524 92,466 Page 11
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 5 Income from other trading activities Unrestricted fund5 General Total funds Events income: Other events income ToLIl for 2021 Page 12
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 6 Investment income Unrestricted funds General Totsl 2021 Total 2020 Interest receivable and simTlar income- Interest receivable on bank deposits 1.063 1,063 1,567 7 Other income Unrestricted Total 2021 Total 2020 General Other income 1,318 1,318 5,519 Page 13
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 8 Expenditure on d)aritable activities Total 2021 Total 2020 Wages and salaries Social security costs Pension costs 394.774 24.655 9.889 1.704 53.719 33B74 4.422 8,651 392,542 24,863 10,283 1,155 3.798 33,927 4.249 8,369 2,317 2,472 1.188 2,962 311 Staff training Agency staff Premises costs and uttltties Insurance Repairs and maintenance EHC equipment Telephone and fax Offsce expenses Computer software Printin& postage and stationery Materials and equipment Shopping and school welfare Sundries 3.189 642 329 1,932 5.853 4.91J) 5,730 1.734 3,582 5,852 1,615 4,890 1,716 60 Cleaning Independent Examiner Bank charges Depreciation. amorti5ation and other similar costs 3,501 7,505 560.267 513,656 9 Net incomingloutgoing resources Net (outgoing)/incoming resources for the year include: 20 2020 Depreciation of fixed assets 3.501 7.505 Page 14
Redwood Preknschool Notes to the Financial Statements for the Year Ended 31 August 2021 10 Staff costs The aggregate payroll costs were as follows: 2021 2020 Staff costs during the year were: Wages and Salaries Social security costs Pension c05t5 394,774 24,655 9,889 392.542 24.863 10,283 429,318 427,688 No employee received emoluments of more than £60.0 during the year. 11 Taxation The charity is a registered charity and is therefore exempt from taxation. 12 Tangible fixed assets Furniture and equipment Computer equipment Totsl C05t At I September 2020 Additions 42,758 2.510 6,351 49,109 2.510 At 31 August 2021 4S,268 6.351 51.619 Depreclation At I September 2020 Charge for the year 37.365 3.162 5.458 339 42.823 3,501 At 31 August 2021 40,527 5.797 46.324 Net bookvalue At 31 August 2021 4.741 554 5.295 At 31 August 2020 5.393 893 6,286 Page 15
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 13 Debtors 2021 2020 Trade debtors 12.843 4.204 5.586 5,290 4.136 4.596 Prepayments Accrued income 22.633 14.022 14 Cash and cash equivalents 2021 2020 Cash at bank 253,704 291.080 15 Creditors: amounts falling due within one year 2021 2020 Trade creditors 2.124 6.398 1,137 1.734 69 Other taxation and social security Other creditors 8.339 1,485 1,716 Accruals 11.393 11,609 16 Pension and other schemes Defined contribution pension schenie The charity operates a defined contribution pension scheme. The pensiori cost charge for the year represents contributions payable by the charity to the scheme and amounted to £9,889 (2020- £10.283). Page 16
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 17 Analysis of net funds At I September Flnanclng cash 2020 At 31 August 2021 Cash at bank and in hand 291.080 137.377) 253,703 Net debt 291,080 (37,377) 253,703 At I September 2019 Financing cash flows At 31 August 2020 Cash at bank and in hand 267,026 24.055 291.081 Net debt 267.026 24,055 291,081 18 Covid 19 This year has again. had unprecedented challenges due to COVID-19. and Redwood Pre-school has risen to meet these, adapting and changing to meet the needs of thildren and their families whilst managing the risks as best as possible. following government guidance throughout. Amongst the challenges faced have been financlal plannlng with a lot of uncertainty regarding funding and reduced ability to fundraise. ongoing restrictions on services and significant decrease in demand for places. During the year the charity received £46.26212020: £38,029) of COVID grants, thi5 included £37,500 Hardship Grant, £1.336 COVID SSP reclaim and £7,426 ofJRS claims. Page 17
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 19 Funds 2021 Balano at I September 2020 Incoming resources Resources expended Balance at 31 August 2021 Unrestricted General 299.780 530,726 (560.267) 270,239 2020 Balan at I September 2019 Incoming resour Re50urces expended Balance at 31 August 2020 Unrestricted General 290,662 522,773 1513.656) 299,779 Page 18
Redwood Pre-school Notes to the Financial Statements for the Year Ended 31 August 2021 20 Analysi5 of net assets between funds 2021 Unrestricted funds General Totsl funds at 31 August 2021 Tangible fixed assets Current assets 5.295 276.337 (11.393) 5,295 276,337 (11,3931 Current liabilities Total net assets 270.239 270,239 2020 Unrestrirted funds General Totsl funds at 31 August 2020 Tangible fixed assets Current assets 6.286 305.102 111.609) 6,286 305,102 {11,6091 Current liabilities Total net assets 299.779 299,779 Page 19