2022-08-31-accounts

Company Registration Number: 05155784 Charity Registration Number: 1106307

HEATHCOT PRE-SCHOOL LIMITED (A Company Limited by Guarantee)

Trustees Annual Report

and Financial Statements Year Ended 31 August 2022

HEATHCOT PRE-SCHOOL LIMITED

Contents

	Page
Members of the Board and professional advisers	2
Trustees Annual Report	3-5
Independent Examination	6
Statement of Financial Activities
(incorporating the income and expenditure account)	7
Balance Sheet	8
Notes to the financial statements	9-12

• 1 -

HEATHCOT PRE-SCHOOL LIMTED

MEMBERS OF THE BOARD AND PROFESSIONAL ADVISORS

Registered Charity Name	Heathcot Pre-School Limited
Charity Number	1106307
Company Number	05155784
Registered Office	78 Windsor Road
	Coppice
	Oldham
	OL8 1RP
Directors and Trustees	Javid Iqbal
	Sher Baz
	Yasmin Kousar Toor
Secretary	Mubeen Shahid
Independent Examiner	Community Accounting Lancashire C.I.C.
	Foxfields
	9 Norley Close
	Chadderton
	Oldham
	OL1 2RA
Bankers	Lloyds TSB
	55-57 Yorkshire Street
	Oldham
	OL1 3SL

• 2 -

HEATHCOT PRE-SCHOOL LIMITED

TRUSTEES ANNUAL REPORT

The trustees and directors for the purposes of company law, present their annual report and the unaudited financial statements of the charity for the year ended 31 August 2022.

Structure, Governance and Management

Governing Document

Heathcot Pre-school Limited is a charitable company limited by guarantee, incorporated on 07/06/2005 and registered as a charity on 14/10/2004.

Recruitment and Training of Trustees

The directors of the company are also charity trustees for the purposes of charity law and under the requirements of the Memorandum and Articles of Association the board members are appointed for a period of 5 years after which they may be reappointed.

All board members give their time voluntarily. Because of the nature of the charity’s work the suitability of all board members is determined through an enhanced criminal records bureau check.

All trustees are familiar with the work of the charity and have been given information about their responsibilities as trustees through the charity commission trustee leaflet.

Future trustees will be provided with the induction training either from the Chair or the manager.

Public Benefit

Our main activity is ‘advancement of education’ by delivering learning through play activities. We are registered with Ofsted to provide care and learning for children from 2 years to 5 years old children.

Risk Management

The Board of Trustees has put in place a risk management process which identifies key events or incidents that could affect the charity’s ability to achieve its aims. This process results in a record of the most significant risks, both internal and external. For each, the possible impact or consequence of the risk and the required action to mitigate the risk are stated. The Trustees seeks reasonable assurance that these risks have been adequately managed and is satisfied that appropriate procedures and controls are in place to manage the risks.

As a charity providing care for children the Trustees acknowledge that the organisation is exposed to certain risks as part of carrying out these activities, for example injury to children whilst in the organisation’s care. The Trustees have put in place systems to seek to identify and assess the key risks that the charity faces and have put in place controls to seek to manage these risks.

Key risks that remain are: potential changes to government policy on early year provision, which risk exposing the charity to significant pension liabilities.

Risks are covered through a comprehensive set of policies and procedures that are shared with staff and users of the provision. These are reviewed annually to ensure they continue to meet the needs of the charity.

Objectives, Aims and Activities

Charitable Objectives

The Charitable Objectives of Heathcot Pre-School Limited, as set out in the Memorandum of Association of the Company are to provide and assist in the provision of childcare and education services for the benefit of the community in particular to enhance the development and education of children from 2 years to 5 years appropriate play education and care facilities.

• 3 -

HEATHCOT PRE-SCHOOL LIMITED

TRUSTEES ANNUAL REPORT

Review of Achievements and Performance for the Year

Operational Performance

We review our aims, objectives and activities each year. We look at what we have achieved and the outcome of our work in the previous 12 months. We look at the strengths and areas for improvement in our provisions.

Financial Review

The charity’s financial statement shows a small increase of £4,906 in funds, compared to a decrease of (£34,068) in the previous year. This reflects the Government funding received for three year olds, and the impact in the previous financial year from Covid-19.

Reserves Policy

The management committee has established a reserves policy. The aim of the reserves policy is to hold funds to sustain activities in the event of future income variation or increases in operational costs.

The policy reflects the need to respond to changes to the major risks and to be able to meet the commitment of providing early year education to children.

The committee retains sufficient funds to meet statutory redundancy requirements and sufficient funds to maintain 3 months expenditure.

Aside from reserves most of the charity’s funds are to be spent in the short term.

We have money on the side for potential and expected income drop and currently we are in council building, the rest of the reserved fund is to buy own building in the future.

Impact of Coronavirus (COVID-19)

The charity accessed the Governments HMRC Job Retention Scheme in the previous financial year, and at the start of this year, in order to retain the current staff during the periods of closure due to Covid-19 restrictions.

The charity will used its reserve funds in the previous financial year to manage the negative financial impact of the Covid-19 as there was a reduction in income due to the periods of closure. This year has not been impacted as much as we start to build back up again after the pandemic.

We are continuing to constantly review and carry out robust risk assessments to ensure staff, parents and children are in a safe environment.

Plans for the Future

The Pre-school will continue to work with its parents, families, pre-school practitioners, local authorities and the Department for Education to provide high quality care and education for children, to improve the sustainability of groups and to promote the involvement of parents in all aspects of their children’s education.

• 4 -

HEATHCOT PRE-SCHOOL LIMITED

TRUSTEES ANNUAL REPORT

Directors Responsibilities in relation to the Financial Statements

The Directors are responsible for preparing the Directors Annual Report and the Financial Statements in accordance with applicable law and regulations.

The trustees and directors for the purposes of company law, present their annual report and the unaudited financial statements of the charity for the year ended 31 August 2022.

The Board have adopted the provision of the Charities SORP (FRS 102) – Accounting and Reporting by Charities: Statement of Recommended practice applicable in the UK and Republic of Ireland (effective 1 January 2015, and including update bulletins on 2 February 2016 and 5 October 2018) in preparing the annual report and financial statements of the charity. The accounts have been prepared in accordance with the Companies Act 2006.

The trustees (who are also directors of Heathcot Pre-School Ltd for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and with the provision for small companies.

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources.

In preparing the financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

• there is no relevant audit information of which the charitable company’s auditors are unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The report of the members of the board were approved by the Board on the 31[st] of January 2023 and signed on their behalf;

Javid Iqbal Director

• 5 -

HEATHCOT PRE-SCHOOL LIMITED

REPORT TO THE MEMBERS ON THE UNAUDITED FINANCIAL STATEMENTS OF HEATHCOT PRE-SCHOOL LIMITED

YEAR ENDED 31 AUGUST 2022

I report on the accounts for the year ended 31 August 2022 set out on pages 7 to 12.

Respective Responsibilities of Trustees and Examiner

The charity’s trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (the 2006 Act). The trustees consider that an audit is not required for this year under s144 (2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

• Examine the accounts under s145 of the 2011 Act

• Follow the procedure laid down in the General Directions given by the Charity Commissioners (under s145(5)(b) of the 2011 Act, and

• To state whether particular matters have come to my attention.

Basis of Independent Examiners Opinion

My examination was carried out in accordance with General Directions given by the Charity commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items of disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an opinion as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent Examiners Statement

In connection with my examination, no matter has come to my attention:

1. Which gives me reasonable cause to believe that, in any material respect, the requirements:

2. To keep accounting records in accordance with s386 of the Companies Act 2006; and

3. To prepare accounts which accord with the accounting records and to comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met; or

4. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

31[st] January 2023

Miss Jacqueline Bird F.M.A.A.T.

Community Accounting Lancashire C.I.C. Foxfields 9 Norley Close Chadderton Oldham OL1 2RA

• 6 -

HEATHCOT PRE-SCHOOL LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 31 AUGUST 2022

Unrestricted Funds Restricted Funds 2022 2022 Notes £ £ Income from: Raising Funds - - Charitable activities 2 165,304 - Other income 3 3,616 - Total 168,920 - Expenditure on: Charitable activities 4 164,014 - Other expenditure - - 164,014 - Total Net income/(expenditure) 4,906 - Reconciliation of funds: Total funds brought forward 222,031 - Total funds carried forward 7 226,937 -	Total Funds 2022 £ - 165,304 3,616 168,920 164,014 - 164,014 4,906 222,031 226,937	Total Funds 2021 £ - 108,053 16,691 124,744 158,812 - 158,812 (34,068) 256,099 222,031

The statement of financial activities contains all gains and losses for the year and all activities relate to continuing operations. The profit for the purposes of the Companies Act 2006 is the net incoming resources before unrealised losses/gains.

The notes on pages 9 to 12 form part of these financial statements.

Note 10 on page 12 shows comparative information for the year ended 31 August 2021.

• 7 -

HEATHCOT PRE-SCHOOL LIMITED

BALANCE SHEET

AS AT 31 AUGUST 2022

Notes Current Assets Cash at Bank and in Hand Prepayments Total Current Assets Liabilities Creditors: Amounts falling due within one year 6 Net Current Assets or Liabilities Total Net Assets or Liabilities The Funds of the Charity Unrestricted Funds Restricted Funds Total Funds 7	2022 2021 £ £ £ £ 228,943 222,811 - - 228,943 222,811 (2,006) (780) 226,937 222,031 226,637 222,031 - - 226,937 222,031

For the year ending 31 August 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director’s responsibilities:

• i. The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476

• ii. The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The accounts are prepared in accordance with the provisions applicable to companies’ subject to the small companies’ regime.

The accounts were approved by the Board of Directors on the 31[st] of January 2023 and signed on its behalf by:

Javid Iqbal Director

• 8 -

HEATHCOT PRE-SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2022

1. ACCOUNTING POLICIES

Basis of accounting

The financial statements have been prepared under the historical cost convention and 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 (FRS102) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016 and also Update Bulletin 2 published on 5 October 2018) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Incoming resources

All income, including grants, are recognised once the charity has entitlement to the income. It is probable that the income will be received, and the amount of income receivable can be measured reliably.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria’s is identified to the fund, together with a fair allocation of overheads and support costs.

Unrestricted funds are donations and other incoming resources received or generated for charitable purposes.

Resources expended

All expenditure is accounted for on an accruals basis.

All expenses including support costs and governance costs are allocated or apportioned to applicable expenditure headings.

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 settlement will be required, and the amount for the obligation can be measured reliably.

Cash flow statement

The trustees have taken advantage of the exemption in Financial Reporting Standard No 1 (revised) from including a cash flow statement in the financial statements on the grounds that the company is small.

2. Income from Charitable activities

	Unrestricted	Restricted	2022	2021
	Funds	Funds	Total Funds	Total Funds
	£	£	£	£
Nursery Education Grant
OMBC 3&4 Free Entitlement	149,258	-	149,258	98,933
Nursery Fees	16,046	-	16,046	9,120
	165,304	-	165,304	108,053

• 9 -

HEATHCOT PRE-SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2022

3. Other Income

ther Income
	Unrestricted	Restricted	2022	2021
	Funds	Funds	Total Funds	Total Funds
	£	£	£	£
HMRC Job Retention Scheme Grant	2,531	-	2,531	12,497
Refunds	1,085	-	1,085	1,094
Other Income (Sundries)	-	-	-	3,100
	3,616	-	3,616	16,691

During the period the charity benefitted from a total of £2,531 (£12,497: 2021) of Government Grants from the HMRC Job Retention Grant Scheme. In accordance with accounting policy, this credit is included in ‘Other Income’ within the ‘Statement of Financial Activities’ in the period for which they compensate.

4 Expenditure on Charitable activities

Expenditure on Charitable activities
	Unrestricted		Unrestricted	2022	2021
	Support	&	Direct	Total	Total
	Governance		Costs	Funds	Funds
	Costs
		£	£	£	£
Salaries		-	130,004	130,004	128,302
Tax & NI		-	-	-	2,061
Payroll & Accountancy Fees	1,488		-	1,488	2,570
Pension		-	6,226	6,226	5,440
Companies House Fee		13	-	13	13
Membership & Service Contracts		-	3,218	3,218	2,430
Cleaning	5,182		-	5,182	3,461
Equipment & Toys		-	2,265	2,265	262
Office Equipment & IT		-	765	765	5,500
Resources		-	2,430	2,430	1,436
Travel Expenses		-	14	14	-
Training		-	360	360	1,177
Insurance	3,146		-	3,146	3,013
Fee Refunds		-	149	149	38
Other Refunds		-	2,605	2,605	-
Snacks		-	1,192	1,192	462
Uniform		-	1,360	1,360	-
DBS Checks		-	210	210	65
Printing & Stationery	1,825		-	1,825	1,335
Telephone & Internet	796		-	796	759
Sundry Expenses		-	766	766	488
	12,450		151,564	164,014	158,812
Total resources expended are stated after charging:				2022	2021
				£	£
Independent Examination Fees				780	780

• 10 -

HEATHCOT PRE-SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2022

5. Staff Costs

taff Costs
The movement in the year is after charging:
	2022	2021
	£	£
Net Wages and Salaries	130,004	128,302
Average number of full-time equivalent employees in the year:
Manager	1	1
Assistant Manager	1	1
Pre School Practitioners	5	5
Pre School Assistants	3	3
Trainee Administration Assistant	1	1

No Trustee received any remuneration during the year.

No employee received emoluments of £60,000 or above (2021: none).

6. Creditors: Amounts falling due within one year

Accruals: Pension Payments Accounts and Independent Examination	2022 £ 1,226 780 2,006	2021 £ - 780 780

7. Funds

unds
	Balance as at	Incoming	Resources	Balance as at
	1 September	Resources	Expended	31 August
	2021			2022
		£	£	£
Unrestricted Funds	222,031	168,920	(164,014)	226.937
Restricted Funds:	-	-	-	-
Total Funds	222,031	168,920	(164,014)	226,637

8. Company Status

The charity is limited by guarantee and has no share capital. There are 3 members and the liability of each member in the event of winding up is limited to £1.

9. Related Parties

There were no related party transactions during the year.

• 11 -

HEATHCOT PRE-SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2022

10. Comparative Information (previous years)	10. Comparative Information (previous years)
		Unrestricted Funds	Restricted Funds	Total Funds
		2021	2021	2021
		(previous year)	(previous year)	(previous year)
		£	£	£
	Notes
Income from:
Raising Funds		-	-	-
Charitable activities	2	108,053	-	108,053
Other income	3	16,691	-	16,691
Total		124,744	-	124,744
Expenditure on:
Charitable activities	4	158,812	-	158,812
Other expenditure		-	-	-
Total		158,812	-	158,812
Net income/(expenditure)		(34,068)	-	(34,068)
Reconciliation of funds:
Total funds brought forward		256,099	-	256,099
Total funds carried forward	7	222,031	-	222,031

• 12 -