## Cullingworth Pre-School Charity number 1114082 A company limited by guarantee number 05686132 ## Annual Report and Financial Statements for the year ended 31 August 2021 Cullingworth Pre-School Annual Report and Financial Statements for the year ended 31 August 2021 |**Contents**|**Page**| |---|---| |Trustees' report|2 to 5| |Examiner's report|6| |Statement of financial activities|7| |Balance sheet|8| |Notes to the accounts|9 to 14| ## **Prepared by West Yorkshire Community Accounting Service** 1 ## Cullingworth Pre-School ## Trustees' report for the year ended 31 August 2021 ## **Reference and administrative details of the charity, its trustees and advisors** The trustees during the financial year and up to and including the date the report was approved were: **Name Position Dates** **Name Position Dates** Nicola Higgins Chair Joanna Major Treasurer Tracy Braisby Secretary Appointed 22 April 2021 Megan Harvey Daniel Higgins Appointed 22 April 2021 Barbara Knowles Manager Eleanor Roberts Resigned 22 April 2021 **Charity number** 1114082 Registered in England and Wales **Company number** 05686132 Registered in England and Wales **Registered and principal address Bankers** 12 Lodge Street The Co-operative Bank Cambridge and Counties Bank Cullingworth PO Box 250 Charnwood Court Bradford Skelmersdale 58 New Walk BD13 5HB WN8 6WT Leicester LE1 6TE ## **Independent examiner** Rhys North ACA **West Yorkshire Community Accounting Service** Stringer House 34 Lupton Street Leeds LS10 2QW ## **Structure, governance and management** The charity is a company limited by guarantee and was formed on 24 January 2006. It is governed by a memorandum and articles of association. The liability of the members in the event of the company being wound up is limited to a sum not exceeding £1. ## **Method of recruitment and appointment of trustees** The trustees of the charity are also the directors for the purposes of company law and are appointed by the members at the AGM. Training for specific roles is given as and when required by retiring or existing trustees. Copies of the governing Memorandum and Articles of Association are available at the Preschool. 2 ## Cullingworth Pre-School ## Trustees' report (continued) for the year ended 31 August 2021 ## **Objectives and activities** ## **The charity's objects** The aims of the Pre-school are to enhance the development and education of children between 2 and 5 years of age and support children to reach their full potential by: (a) offering appropriate play, education and care facilities, family learning and extended hours groups, working together with the parents to become involved in their child's learning, ensuring that we offer opportunities for all children whatever their race, culture, religion, means or ability; (b) ensuring that staff are well qualified and are given opportunities to keep their skills and knowledge updated; (c) instigating and adhering to and furthering the aims and objects of the Pre-School Learning Alliance. ## **The charity's main activities** The charity’s principal activity is the provision of a planned early years' curriculum, supported by the Early Years' Foundation document (EYFS). There continue to be individual consultations to allow parents the opportunity to review their child’s progress with staff. Parents/carers are always welcomed into the setting to meet with their child’s key person or managers. Committee meetings, the AGM and fundraising sub-committees allow further opportunities for parents to become involved in the running of the Preschool. ## **Public benefit statement** In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular the advancement of education. ## **Achievements and performance** This year has seen several new members of the staff team being appointed as we continue to grow our provision. We give a warm welcome to all the new staff recruited during the year and the committee wish to extend their thanks and gratitude to all staff for their extra efforts during what has been another troublesome year. The last year has been another successful year for the children at Preschool. The school is an Outstanding provider of Early Years provision (Ofsted Report 22 October 2015) and the Staff and Committee are committed to try and maintain this high level of achievement. Whilst the pandemic was perhaps not as problematic this year, we have still battled through some additional challenges with staff absence and Covid positive children. We consider ourselves very fortunate that we only had to close for one period but sadly this came at the end of the school year when we would normally have been saying goodbye to our Year 2 children as they made the move to Primary School. Staff were excellent as always and we organised a small leavers' ceremony for these children during the summer holiday and the Committee would extend their thanks to the staff for giving up their own time to do so. The transition to Primary schools this year was somewhat easier than last year as children were able to visit the school. Feedback from Primary school has again been excellent. This year we have further enhanced our outdoor areas and have provided new, excellent resources for the children. Staff and committee members work hard on our various fundraising efforts which this year included sale of children’s photos. We have also been the very pleased recipients of donations from Cullingworth Co-op and their ‘Local Causes’ Scheme. Staff continue to develop their skills through in-house training, short courses and the gaining of relevant qualifications. 3 ## Cullingworth Pre-School ## Trustees' report (continued) for the year ended 31 August 2021 ## **Financial review** The net income for the year was £20,289, all relating to unrestricted funds. ## **Reserves policy** The attendance of the school has once again been at maximum capacity and funding was received from Bradford Council (£108,934) for children on the register who are aged three at the beginning of the relevant term, as well as payments in respect of qualifying two-year-olds. Funds were also received direct from parents of £35,095 in respect of sessions which do not qualify for local authority funding and additional sessions over and above the funded limit of 15 hours per week. This year has seen the continuation of our successful wraparound care offering local primary school children before and after school care. We are still at capacity. This has brought in extra income of £24,737. Our staffing cost this year is higher than previous years, with extended hours worked by staff members to meet our new capacity together with working longer hours with the breakfast and after school clubs. Our premises expenses are slightly increased at the new village hall location but we are confident that the new setting is worth the extra expense. We have upgraded our technology with the purchase of new iPads to continue the use of the Tapestry Learning Journal system which is popular with parents to see their child’s progress. The Pre-school relies upon the support of parents of the children and their families to volunteer to join the committee and help to organise and run events. This year’s activities have been less than usual due to the pandemic, but the funds raised are used to update and maintain equipment and resources, as well as annual trips when Covid allows. ## **Reserves policy** The charity's free reserves, excluding fixed assets, at the year end were £195,966. The Preschool has an agreed reserves policy for it to hold sufficient capital in reserve to run the Preschool for two terms, assuming no income was generated. This reserve also holds sufficient funds to cover statutory redundancy payments in the event that the Preschool had to close for any reason. We carry out a budget forecast each year, including the income expected if at full capacity along with our projected costs. We are aware that traditionally, some of our morning sessions tend to run at a loss, this is because we generally only take 2 year olds in the morning sessions and the fees we can charge or the funding received is not as high as for 3 or 4 year olds. Our afternoon sessions and wraparound service more than make up for this. Our committed costs are more than manageable and we always keep a reserve of up to 6 months funding to ensure that we can continue to operate in the event our income drops dramatically. The preschool is as popular as ever within the village and we are full to capacity. The introduction of our afterschool facility has proved very popular and is again at capacity. The trustees recognise that actual reserves at 31 August 2021 exceed the target level of reserves. Given this the trustees are reviewing future expenditure plans, alongside their budget setting process, wiith a view to managing the actual level of reserves to be in line with the reserves policy in a managed way. At the time of signing these accounts the charity has been impacted by the global Covid-19 virus. The trustees have reassessed the charity’s ability to continue for at least 12 months from the date that the accounts are approved and conclude that no material uncertainties exist that cast significant doubt on the charity’s ability to continue as a going concern.’ 4 ## Cullingworth Pre-School ## Trustees' report (continued) for the year ended 31 August 2021 ## **Plans for future periods** We have the capacity for up to 40 places per session although we will continue to manage this increase carefully to take into account the availability of staff and child ratio and are currently supporting over 70 children. In the village hall, we are able to offer places for those working parents qualifying for the extended entitlement of 30 hours per week as well as more flexibility over the sessions attended and wrap around care. ## **Statement of trustees' responsibilities** The trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees report and the financial statements in accordance with the applicable law and UK Accounting Standards. Company law requires the trustees to prepare financial accounts 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, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to: select suitable accounting policies and apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the accounts on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP (FRS102)), and in accordance with the special provisions of the Companies Act 2006 relating to small companies. Signed on behalf of the board of trustees on 9/12/2021 Joanna Major (Trustee) 5 ## Cullingworth Pre-School ## Independent examiner's report to the trustees of Cullingworth Pre-School I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 August 2021, which are set out on pages 7 to 14. ## **Responsibilities and basis of report** As the charity's trustees of the charitable 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 charitable 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 ('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 material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 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. Rhys North ACA 9/12/2021 ## **West Yorkshire Community Accounting Service** Stringer House 34 Lupton Street Leeds LS10 2QW 6 ## Cullingworth Pre-School ## Statement of Financial Activities ## (including summary income and expenditure account) for the year ended 31 August 2021 |Notes
2021
Unrestricted
funds
£
**Income from:**
Fees received
168,766
Grants
(2)
25,000
Donations and fundraising
1,735
Uniform sales
834
Other income
2,096
Bank interest
859
**Total income**
199,290
**Expenditure on:**
Wages, NIC and pension
(3)
138,915
Subcontractors
265
Consumable resources
4,103
Costs - snacks
1,780
Costs - uniforms
1,371
Marketing
-
Rent
11,916
Utilities and water
2,413
Travel costs
-
Entertainment
-
Printing, postage and stationery
690
Telephone
189
Internet and software charges
615
Independent examination
1,008
Professional fees and charges
1,660
Business insurance
674
Equipment hire
25
Repairs & renewals
4,077
Cleaning and waste disposal
675
General expenses
423
Subscriptions and licences
417
Clothing costs
25
Training costs
280
Depreciation
7,480
Charitable donations
-
Interest and Charges paid
-
**Total expenditure**
179,001
**Net income / (expenditure)**
20,289
**Fund balances brought forward**
231,360
**Fund balances carried forward**
(4)
251,649|2021
Restricted
funds
£
-
942
-
-
-
-
942
942
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
942
-
-
-|2021
Total
funds
£
168,766
25,942
1,735
834
2,096
859
200,232
139,857
265
4,103
1,780
1,371
-
11,916
2,413
-
-
690
189
615
1,008
1,660
674
25
4,077
675
423
417
25
280
7,480
-
-
179,943
20,289
231,360
251,649|2020
Total
funds
£
173,592
14,699
816
553
3,108
1,304
194,072
118,174
-
2,113
1,628
459
1,050
10,999
3,713
85
325
939
244
562
1,008
730
673
312
980
2,497
114
466
49
514
8,727
85
65
156,511
37,561
193,799
231,360| |---|---|---|---| All incoming resources and resources expended derive from continuing activities. 7 ## Cullingworth Pre-School ## Balance sheet |as at 31 August 2021
2021
Unrestricted
£
**Fixed assets**
Tangible assets
(5)
55,683
**Total fixed assets**
55,683
**Current assets**
Debtors and prepayments
(6)
1,111
Cash at bank and in hand
(7)
200,602
**Total current assets**
201,713
**Current liabilities:**
**amounts falling due within one year**
Creditors and accruals
(8)
5,747
**Total current liabilities**
5,747
**Net current assets / (liabilities)**
195,966
**Total assets less current liabilities**
251,649
**Net assets**
251,649
**Funds**
Unrestricted funds
251,649
Restricted funds
-
**Total funds**
251,649|2021
Restricted
£
-
-
-
-
-
-
-
-
-
-
-
-
-|2021
Total
£
55,683
55,683
1,111
200,602
201,713
5,747
5,747
195,966
251,649
251,649
251,649
-
251,649|2020
Total
£
60,245
60,245
6,891
170,182
177,073
5,958
5,958
171,115
231,360
231,360
231,360
-
231,360| |---|---|---|---| For the year ending 31 August 2021 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476. The trustees (who also the directors for the purposes of company law) acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and with FRS 102 (effective January 2019). The financial statements were approved by the board of trustees on 9/12/2021 Joanna Major (Trustee) 8 ## Cullingworth Pre-School ## Notes to the accounts ## for the year ended 31 August 2021 ## **1 Accounting policies** ## **Basis of accounting** These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: 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) (effective 1 January 2019) and with the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. There has been no change to the accounting policies since last year. No changes have been made to the accounts for previous years. ## **Going concern** The trustees are satisfied that there are no material uncertainties about the charity's ability to continue. ## **Incoming resources** All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability. ## **Grants and donations** Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources. Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance. ## **Expenditure and liabilities** Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty. ## **Taxation** As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates. ## **Tangible fixed assets** Tangible fixed assets are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: Village Hall fit-out costs: over 25 years Fixtures and fittings: 33% on reducing balance basis 9 ## Cullingworth Pre-School ## Notes to the accounts for the year ended 31 August 2021 ## **1 Accounting policies continued** ## **Pensions** The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable. ## **Fund accounting** Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. Further explanation of the nature and purpose of each fund is included in the notes to the accounts. ## **Leases** Rents under operating leases are charged on a straight line basis over the lease term or to an earlier date if the lease can be determined without financial penalty. 10 ## Cullingworth Pre-School ## Notes to the accounts continued ## for the year ended 31 August 2021 |**2 Grants and donations**
HMRC Coronavirus Job Retention Scheme (JRS)
Bradford Metropolitan District Council (BMDC)
Groundwork
**3 Staff costs and numbers**
Gross salaries
Social security costs
Employment allowance
Pensions|2021
Unrestricted
funds
£
-
25,000
-
25,000|2021
Restricted
funds
£
942
-
-
942|2021
Total
funds
£
942
25,000
-
25,942
2021
£
137,290
6,447
(5,407)
1,527
139,857|2020
Total
funds
£
7,308
6,891
500
14,699
2020
£
115,446
4,362
(2,827)
1,193
118,174| |---|---|---|---|---| The average number employees during the year was 11.6, being an average of 8.1 full time equivalent (2020: 10.8, 7.6 FTE). There were no employees with emoluments above £60,000. |**Defined contribution pension scheme**
Costs of the scheme to the charity for the year
Amount of any contributions outstanding at the year end
Amount of any contributions prepaid at the year end
**4 Restricted funds**
Balance b/f
Incoming
£
£
HMRC Coronavirus JRS
-
942
BMDC Discretionary Relief Fund
-
-
-
942|Outgoing
£
942
-
942|2021
£
1,527
1,432
-
Transfers
£
-
-
-|2020
£
1,193
802
-
Balance c/f
£
-
-
-| |---|---|---|---| ## **Fund name Purpose of restriction** HMRC Coronavirus JRS BMDC Discretionary Relief Fund Towards employment costs during periods of inactivity as a result of lockdowns in the Covid pandemic. To assist with the payment of standing costs of rent and utilities during the first six months of the Covid pandemic. 11 ## Cullingworth Pre-School ## Notes to the accounts continued ## for the year ended 31 August 2021 |**5 **
**6 **
**7 **
**8 **|**Tangible assets**
**Cost**
At 1 September 2020
Additions
At 31 August 2021
**Depreciation**
At 1 September 2020
Charge for year
At 31 August 2021
**Net book value**
At 31 August 2021
At 31 August 2020
**Debtors and prepayments**
Debtors
Prepayments
**Cash at bank and in hand**
Cash at bank
Cash in hand
**Creditors and accruals**
Creditors
Accruals|£
49,849
2,918
52,767
36,247
5,452
41,699
11,068
13,602
Fixtures,
Fittings &
Equipment|£
50,699
-
50,699
4,056
2,028
6,084
44,615
46,643
2021
£
582
529
1,111
2021
£
200,506
96
200,602
2021
£
2,635
3,112
5,747
Village Hall
fit out costs|Total
£
100,548
2,918
103,466
40,303
7,480
47,783
55,683
60,245
2020
£
6,891
-
6,891
2020
£
170,127
55
170,182
2020
£
1,923
4,035
5,958| |---|---|---|---|---| 12 ## Cullingworth Pre-School ## Notes to the accounts continued for the year ended 31 August 2021 ## **9 Related party transactions** ## **Trustee expenses** No trustee received any expenses during this year or the previous year. ## **Trustee remuneration and benefits** |2021
£
**Name of trustee**
**Description of transaction**
Barbara Knowles
Employment costs as Pre-School manager
26,422
26,422
No other trustee received any other remuneration or benefit during this or the previous year.|2020
£
21,426
21,426| |---|---| ## **Remuneration and benefits received by key management personnel** The key management personnel of the charity include the trustees and Pre-School Manager. The total employee benefits received by the key management personnel were £26,422 (previous year: £21,426). No trustee received any remuneration or benefit in this capacity during this or the previous year apart from that disclosed in Note 10. ## **Other related party transactions** |**Other transactions with trustees or related parties**
Joanna Major
Sue Wood
Close relative of
Employment costs
Megan Harvey, trustee
Eve Knowles
Close relative of
Employment costs
**13 Operating leases**
Within one year
In the second to fifth years inclusive
Over five years from the balance sheet date
Expected future minimum lease payments over the remaining
life of the lease, analysed into the period in which the
commitment falls due:
Trustee
Bookkeeping services
**Name of trustee**
**or related party**
**Relationship to**
**charity**
**Description of transaction**
Barbara Knowles,|2021
£
500
3,812
17,425
21,736
2021
£
10,988
43,981
51,025
105,994|2020
£
-
3,523
8,693
12,216
2020
£
10,988
43,981
62,013
116,982| |---|---|---| 13 ## Cullingworth Pre-School ## Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 August 2021 |2021
2020
Unrestricted Unrestricted
funds
funds
£
£
**Income**
Fees received
168,766
173,592
Grants
25,000
500
Donations and fundraising
1,735
816
Uniform sales
834
553
Other income
2,096
3,108
Bank interest
859
1,304
**Total income**
199,290
179,873
**Expenditure**
Wages, NIC and pension
138,915
110,866
Subcontractors
265
-
Consumable resources
4,103
2,113
Costs - snacks
1,780
1,628
Costs - uniforms
1,371
459
Marketing
-
1,050
Rent
11,916
5,499
Utilities and water
2,413
2,322
Travel costs
-
85
Entertainment
-
325
Printing, postage and stationery
690
939
Telephone
189
244
Internet and software charges
615
562
Independent examination
1,008
1,008
Professional fees and charges
1,660
730
Business insurance
674
673
Equipment hire
25
312
Repairs & renewals
4,077
980
Cleaning and waste disposal
675
2,497
General expenses
423
114
Subscriptions and licences
417
466
Clothing costs
25
49
Training costs
280
514
Depreciation
7,480
8,727
Charitable donations
-
85
Interest and Charges paid
-
65
**Total expenditure**
179,001
142,312
**Net income / (expenditure)**
20,289
37,561
**Fund balances brought forward**
231,360
193,799
**Fund balances carried forward**
251,649
231,360|2021
Restricted
funds
£
-
942
-
-
-
-
942
942
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
942
-
-
-|2020
Restricted
funds
£
-
14,199
-
-
-
14,199
7,308
-
-
-
-
-
5,500
1,391
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14,199
-
-
-|2021
Total
funds
£
168,766
25,942
1,735
834
2,096
859
200,232
139,857
265
4,103
1,780
1,371
-
11,916
2,413
-
-
690
189
615
1,008
1,660
674
25
4,077
675
423
417
25
280
7,480
-
-
179,943
20,289
231,360
251,649|2020
Total
funds
£
173,592
14,699
816
553
3,108
1,304
194,072
118,174
-
2,113
1,628
459
1,050
10,999
3,713
85
325
939
244
562
1,008
730
673
312
980
2,497
114
466
49
514
8,727
85
65
156,511
37,561
193,799
231,360| |---|---|---|---|---| 14