**REGISTERED COMPANY NUMBER: 04743797 (England and Wales) REGISTERED CHARITY NUMBER: 1100452** **Report of the Trustees and** **Unaudited Financial Statements for the Year Ended 31 May 2023** **for** **- Broughton Pre school (Preston)** McDade Roberts Accountants Limited Chartered Accountants 316 Blackpool Road Fulwood Preston Lancashire PR2 3AE **- Broughton Pre school (Preston)** **Contents of the Financial Statements for the Year Ended 31 May 2023** |||**Page**|| |---|---|---|---| |**Report of the Trustees**|1|to|3| |**Independent Examiner's Report**||4|| |**Statement of Financial Activities**||5|| |**Statement of Financial Position**|6|to|7| |**Notes to the Financial Statements**|8|to|12| |**Detailed Statement of Financial Activities**||13|| **- Broughton Pre school (Preston)** **Report of the Trustees for the Year Ended 31 May 2023** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 May 2023. The trustees have adopted the provisions of 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** ## **Objectives and aims** The main objective is to provide a happy, secure and safe environment where learning is carried out through play for 2-5 year olds. To achieve this objective, learning is carried out through play in a nurturing environment provided by knowledgeable practitioners. The practitioners carry out activities in areas of continuous provision both inside and outside. In setting the objectives, we, the trustees have given regard to the Charity Commission's general guidance on public benefit, advancing education and fee charging. As Broughton Pre-school (Preston) is a fee charging charity and to ensure its aims and objective comply with the Charity Commission's guidance on public benefit, people from lower income brackets can apply to Lancashire County Council for placements under the voucher scheme. ## **ACHIEVEMENT AND PERFORMANCE** Broughton Pre-School continues to offer a very high standard of care and education for 2-5 year olds with high quality leadership and professional and dedicated staff. This, along with the most recent Outstanding judgement from Ofsted has contributed to the setting being at or near capacity throughout the year. ## **FINANCIAL REVIEW** The setting has been working near to capacity for most of the year, though because there was a greater proportion of 2 year olds fee income has remained fairly level. Next year however, we should see fee income improve as the proportion changes to older children. Wages and training costs remain key to the the charity and have been reviewed and adjusted to ensure that key staff have been retained. Other expenditure has been managed as efficiently as the leadership team can do whilst maintaining the experience for the children attending. Details of the charity's incoming resources and resources expended for the year can be seen on page 5 of the accounts. In summary, the charity generated incoming resources of £143,504 to help fund resources expended of £130,044. Income in the year included a generous £10,000 donation for which the trustees were truly grateful. This helped contribute towards the surplus for the year. The Trustees have reviewed closing reserves and are satisfied that there are sufficient to cover any unforeseen liabilities that could arise. We always consider that there could be short falls of income or increases in expenditure of unexpected events resulting in impacts on our funds. Also, were the charity to cease operations then the costs of redundancy and winding up would have to be provided. ## **FUTURE PLANS** The new Lead Practitioner has settled in well and has now been in the post since September 2022, she has a positive outlook and plans for the future. The staff continue to upgrade their skills and expertise but with essential training only. This will mainly be provided by Lancashire County Council. Staff will also spend time researching topics that are relevant to the sector. Page 1 **- Broughton Pre school (Preston)** **Report of the Trustees for the Year Ended 31 May 2023** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is governed by its Articles and Memorandum of Association. The charity is a Company Limited by Guarantee and does not have a share capital. The company was incorporated on 24 April 2003. The liability of the members is limited. Every member of the company undertakes to contribute to the assets of the company if it is wound up whilst a member or within one year after ceasing to be a member, such amounts as may be required not exceeding one pound. The company was registered with the Charity Commission on 3 November 2003. ## **Recruitment and appointment of new trustees** Trustees are recruited and appointed on a volunteer basis from parents of children attending the pre-school. ## **Organisational structure** The charity's trustees are responsible for all aspects of the charity's activities in accordance with the Memorandum and Articles of Association. The trustees at the date of approval of this report are listed on page 2. ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Registered Company number** 04743797 (England and Wales) ## **Registered Charity number** 1100452 ## **Registered office** The Pavilion, King George VI Playing Field Broughton Preston Lancs PR3 5JA ## **Trustees** Mr R Latham Trustee Mr J D Carroll Trustee (resigned 1/10/2023) Ms S L Mayor Trustee (resigned 1/10/2023) Ms A J Berry (appointed 1/10/2023) Ms N J Eastham (appointed 1/10/2023) Mr B Eastham (appointed 1/10/2023) J Matthews (appointed 1/10/2023) A Moore (appointed 1/10/2023) C J Moul (appointed 1/10/2023) Page 2 **- Broughton Pre school (Preston)** ## **Report of the Trustees for the Year Ended 31 May 2023** ## **REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner** Martin Garry, BA (Hons) FCA McDade Roberts Accountants Limited Chartered Accountants 316 Blackpool Road Fulwood Preston Lancashire PR2 3AE Approved by order of the board of trustees on 20 February 2024 and signed on its behalf by: Mr R Latham - Trustee Page 3 **Independent Examiner's Report to the Trustees of - Broughton Pre school (Preston)** ## **Independent examiner's report to the trustees of Broughton Pre-school (Preston) ('the Company')** I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 May 2023. ## **Responsibilities and basis of report** As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the Company 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 Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Martin Garry, BA (Hons) FCA McDade Roberts Accountants Limited Chartered Accountants 316 Blackpool Road Fulwood Preston Lancashire PR2 3AE 20 February 2024 Page 4 **- Broughton Pre school (Preston)** ## **Statement of Financial Activities for the Year Ended 31 May 2023** |Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Fees received
Investment income
2
**Total**
**EXPENDITURE ON**
**Charitable activities**
Expenditure
**NET INCOME**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
10,798
132,543
163
143,504
130,044
13,460
116,626
130,086|Restricted
funds
£
-
-
-
-
-
-
-
-|31.5.23
Total
funds
£
10,798
132,543
163
143,504
130,044
13,460
116,626
130,086|31.5.22
Total
funds
£
81
132,029
3| |---|---|---|---|---| |||||132,113| |||||124,054| |||||8,059
108,567| |||||116,626| The notes form part of these financial statements Page 5 ## **- Broughton Pre school (Preston)** ## **Statement of Financial Position** ## **31 May 2023** |Notes
**FIXED ASSETS**
Tangible assets
6
**CURRENT ASSETS**
Debtors
7
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
8
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
9
Unrestricted funds
**TOTAL FUNDS**|Unrestricted
fund
£
2,839
2,179
129,226
131,405
(4,158)
127,247
130,086
130,086|Restricted
funds
£
-
-
-
-
-
-
-
-|31.5.23
Total
funds
£
2,839
2,179
129,226
131,405
(4,158)
127,247
130,086
130,086
130,086
130,086|31.5.22
Total
funds
£
4,330
670
115,815
116,485
(4,189)
112,296
116,626
116,626
116,626
116,626| |---|---|---|---|---| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2023. The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2023 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. The notes form part of these financial statements Page 6 **- Broughton Pre school (Preston)** **31 May 2023** ## **Statement of Financial Position - continued** These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 20 February 2024 and were signed on its behalf by: Mr R Latham - Trustee The notes form part of these financial statements Page 7 **- Broughton Pre school (Preston)** **Notes to the Financial Statements for the Year Ended 31 May 2023** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Fees receivable are recognised based on invoice dates when children attend the pre-school and grants receivable are recognised at the point when the pre-school becomes entitled to them. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Improvements to property - Straight line over 7 years Equipment - 20% on cost ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **Pension costs and other post-retirement benefits** The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. Page 8 **- Broughton Pre school (Preston)** **Notes to the Financial Statements - continued for the Year Ended 31 May 2023** ## **2. INVESTMENT INCOME** |**INVESTMENT INCOME**||| |---|---|---| ||31.5.23|31.5.22| ||£|£| |Deposit account interest|163|3| |**NET INCOME/(EXPENDITURE)**||| |Net income/(expenditure) is stated after charging/(crediting):||| ||31.5.23|31.5.22| ||£|£| |Depreciation - owned assets|1,491|1,580| ## **3. NET INCOME/(EXPENDITURE)** ## **4. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31st May 2023 or the year ended 31st May 2022. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 31 May 2023 nor for the year ended 31 May 2022. ## **5. STAFF COSTS** The average monthly number of employees during the year was as follows: ||31.5.23|31.5.22| |---|---|---| |Child care staff|6|6| No employees received emoluments in excess of £60,000. Page 9 **- Broughton Pre school (Preston)** ## **Notes to the Financial Statements - continued for the Year Ended 31 May 2023** ## **6. TANGIBLE FIXED ASSETS** |**6.**|**TANGIBLE FIXED ASSETS**|||| |---|---|---|---|---| |||Improvements||| |||to||| |||property|Equipment|Totals| |||£|£|£| ||**COST**|||| ||At 1 June 2022 and 31 May 2023|29,843|35,764|65,607| ||**DEPRECIATION**|||| ||At 1 June 2022|25,513|35,764|61,277| ||Charge for year|1,491|-|1,491| ||At 31 May 2023|27,004|35,764|62,768| ||**NET BOOK VALUE**|||| ||At 31 May 2023|2,839|-|2,839| ||At 31 May 2022|4,330|-|4,330| |**7.**|**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||| ||||31.5.23|31.5.22| ||||£|£| ||Fees and Grants receivable||1,228|61| ||Prepayments||951|609| ||||2,179|670| |**8.**|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||| ||||31.5.23|31.5.22| ||||£|£| ||Trade creditors||862|(490)| ||Social security and other taxes||974|1,060| ||Other creditors||-|1,392| ||Pension||426|398| ||Accrued expenses||1,896|1,829| ||||4,158|4,189| Page 10 **- Broughton Pre school (Preston)** ## **Notes to the Financial Statements - continued for the Year Ended 31 May 2023** ## **9. MOVEMENT IN FUNDS** |At 1.6.22
£
**Unrestricted funds**
General fund
116,626
**TOTAL FUNDS**
116,626
Net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
143,504
**TOTAL FUNDS**
143,504
**Comparatives for movement in funds**
At 1.6.21
£
**Unrestricted funds**
General fund
108,567
**TOTAL FUNDS**
108,567
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
132,113
**TOTAL FUNDS**
132,113|Net
movement
in funds
£
13,460
13,460
Resources
expended
£
(130,044)
(130,044)
Net
movement
in funds
£
8,059
8,059
Resources
expended
£
(124,054)
(124,054)|At
31.5.23
£
130,086| |---|---|---| |||130,086| |||Movement
in funds
£
13,460| |||13,460| |||At
31.5.22
£
116,626| |||116,626| |||Movement
in funds
£
8,059| |||8,059| Page 11 **- Broughton Pre school (Preston)** **Notes to the Financial Statements - continued for the Year Ended 31 May 2023** ## **9. MOVEMENT IN FUNDS - continued** A current year 12 months and prior year 12 months combined position is as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1.6.21
£
108,567
108,567|Net
movement
in funds
£
21,519
21,519|At
31.5.23
£
130,086| |---|---|---|---| ||||130,086| A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
275,617
275,617|Resources
expended
£
(254,098)
(254,098)|Movement
in funds
£
21,519| |---|---|---|---| ||||21,519| ## **10. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 31 May 2023. Page 12 **- Broughton Pre school (Preston)** ## **Detailed Statement of Financial Activities for the Year Ended 31 May 2023** ||31.5.23|31.5.22| |---|---|---| ||£|£| |**INCOME AND ENDOWMENTS**||| |**Donations and legacies**||| |Donations|10,798|81| |**Investment income**||| |Deposit account interest|163|3| |**Charitable activities**||| |Fees, grant and sundry income|132,543|132,029| |**Total incoming resources**|143,504|132,113| |**EXPENDITURE**||| |**Charitable activities**||| |Wages and training|108,294|103,782| |Pensions|2,164|2,050| |Rent, rates and water|1,783|2,387| |Insurance|1,036|891| |Light and heat|3,146|2,025| |Printing, postage, stationery and telephone|2,202|2,533| |Cleaning and sundries|2,143|1,422| |Repairs and renewals|995|1,205| |Education goods|3,060|2,207| |Food and drink|457|525| |Computer costs|549|888| |Property improvements Dep.|1,491|1,491| |Equipment Depreciation|-|89| ||127,320|121,495| |**Support costs**||| |**Governance costs**||| |Bank charges|92|86| |Accountancy|2,632|2,473| ||2,724|2,559| |Total resources expended|130,044|124,054| |**Net income**|13,460|8,059| This page does not form part of the statutory financial statements Page 13