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2021-08-31-accounts

Polstead Preschool St Margaret’s Institute, Polstead Road, Oxford

Annual Report 2020-2021

This has been a year of unprecedented challenges for Polstead, and the fact that the preschool enters the 2021-2022 year in such good health is a testament to the dedication of all the staff, especially Adriana Brito and Klara Fergusson. Their commitment to the children continues to shine, and all of us involved with the school are hugely grateful.

The first challenge, of course, was Covid, and the raft of new protocols and rules affecting all schools. Klara and Adriana worked extremely hard to make the preschool as safe as possible for reopening in September – new routines at drop-off and pick-up, temperature checks, handwashing etc. This was followed, in late September, by the unexpected resignation of two staff members, and the urgent need to recruit new members of the team. Finally, in March, we had to face up to a safeguarding incident in which a child was able to leave the premises unattended. This was clearly a serious lapse, but I’m proud of the way the staff responded in the aftermath – reporting immediately to me as Chair and to Ofsted. I wrote to all the parents, and there followed an intense period of conversations with Ofsted about what had gone wrong and what we needed to put in place to make sure nothing like this ever happened again.

This engagement with Ofsted was in some ways a kind of inspection: though very demanding, it resulted in a series of actions that has left the preschool, I believe, working more impressively and safely than at any time I can remember since first getting involved in 2017. Our landlords, St Margaret’s Institute, installed a new floor and redecorated the hall over the summer holidays, and the setting really is a beautiful, light-filled open space in which children are playing, painting, eating and learning. It’s wonderful to see.

As part of our response to the incident in March 2021, we recruited more qualified staff, and Klara is now working towards her Level 5 qualification. We’ve been lucky to have Becky, Alice

and Aleksandra join the team. The preschool also benefitted immensely from the commitment and generosity of our Committee – Anna Haines, Joe Porter, Rachel Hallett and Mike Kovacevich have been brilliant behind the scenes, guiding and supporting the preschool through the serious challenges outlined in this report. Special thanks to them.

William Fiennes Chair, 13[th] October 2021

A note from Treasurer, Mike Kovacevich:

The Preschool's finances remain in very good health and the financial statements show net incoming resources for the 2021 school year on Preschool activities of £27,948 (2020 £30,337). Income was up on the previous year and the council funding, as a proportion of total income, increased reflecting the return to a more normal distribution of 2, 3 and 4 year olds. Income increased over the previous year by 10.24% to £115,228 (2020 £104,525) largely due to increased uptake of afternoon sessions.

Operating expenses were up from the previous year by 17.65% to £87,281 (2020 £74,189). Underspending on salaries and staff training was mainly due to delays in the recruitment of qualified staff and the implementation of a staff training programme.

The total value of unrestricted funds has increased to £158,549 (2020 £130,592). £18,000 have been set aside for the development of the outdoor area and the passageway leading to the Preschool entrance; £6,000 for the development of the Preschool's IT systems; £2,000 for marketing and advertising. The balance is set aside as a contingency fund due to very low numbers on the waiting list.

Summary

Polstead Preschool Oxford

Income and Expenditure

1 Sep 2020 to 31 Aug 2021
Income
Council Funding
Direct Public Support – Gifts in Kind
Fees
Fundraising
Registration Fees
Sales
Total Income
Total Cost of Goods Sold
Gross Income
Operating Expenses
Administration
Computer and Internet Expenses
Events
Food
Insurance
Meals and Entertainment
Office Supplies
Staff costs
Printing and Reproduction
Professional fees
Rent
Repairs & Maintenance
Subscriptions
Telephone and Broadband
Training
Total Operating Expenses
Net Income
2021
2020
2021
2020
£62,375
£250
£51,174
£80
£880
£470
£50,259
£52,623
£758
£840
£46
£115,228
£104,525
£0
£0
£115,228
£104,525
£9,121
£596
£70
£696
£768
£406
£2,662
£57,969
£4
£100
£12,094
£341
£205
£317
£1,933
£6,940
£752
£539
£210
£768
£426
£1,313
£53,845
£241
£50
£8,395
£84
£317
£308
£87,281
£74,189
£27,948
£30,337

Page 1

Summary

Balance Sheet

Assets
Cash and Bank
POLSTEAD PL
POLSTEAD PLA
Total Cash and Bank
Other Current Assets
Total Other Current Assets
Long-term Assets
Machinery, equipment, furniture & fixtures
Total Long-term Assets
Total Assets
Liabilities
Current Liabilities
Deposits Received
Total Current Liabilities
Long-term Liabilities
Total Long-term Liabilities
Total Liabilities
Equity
Retained Earnings
Unrestricted funds
Surplus for year
Special Reserves
Total Retained Earnings
Total Equity
31 Aug 2021
31 Aug 2020
31 Aug 2021
31 Aug 2020
£70,778
£90,953
£44,430
£90,944
£161,731
£135,374
£0
£0
£318 £318
£318
£318
£162,049
£135,692
£3,500 £5,100
£3,500
£5,100
£0
£0
£3,500
£5,100
£92,024
£27,948
£38,577
£61,687
£30,337
£38,568
£158,549
£130,592
£158,549
£130,592

Page 2

Summary

Notes to the accounts

For year ended 31 Aug 2021

1. Accounting policies.

1.1. Accounting convention.

The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard (FRS), the Charities Act 2011 and the requirements of the Statement of Recommended Practice (SORP), Accounting and Reporting by charities.

1.2. Taxation.

The Preschool is exempt from tax on its charitable activities and therefore unable to claim back VAT on purchases. The Preschool does pay tax, PAYE and NIC, on salaries.

1.3. Fund accounting.

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified either as a restricted fund or an endowment fund. Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. Polstead Preschool’s restricted funds tend to result from appeals for specified purposes.

2. Trustee benefits.

The following trustees received payments in the year for services delivered:

3. Income.

Income was significantly higher for the year due to increased numbers of attended hours, specifically afternoon hours. There was a negative impact due to the Coronavirus pandemic which was largely minimised due to the CJRS and continued childcare funding. Sales reflect the sale of T-shirts and various articles produced by the children to parents.

4. Staff costs.

2021 2020
Payroll – Salary & Wages £51,012 £47,361
Payroll Employer Taxes & Deductions £3,617 £3,425
Payroll – Employer's Share of Benefits £3,339 £3,059
£57,969 £53,845

Staff salaries were increased in April to cater for the increase to the minimum wage and living costs.

Page 3

Summary

5. Rent.

The Preschool makes use of the St Margaret’s Institute (SMI) premises, mostly the hall. Rates for the 12 months were £62 per day.

6. Training.

Funding of £1,900.80 was provided to Klara Fergusson to complete an 18 month level 5 Diploma in Leadership for the Children and Young People's Workforce.

Page 4

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF POLSTEAD PRESCHOOL, OXFORD (CHARITY No. 1114438) FOR THE YEAR ENDED 31 AUGUST 2021

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. The charity's trustees consider that

an audit is not required for this year (under section 43(2) of the Charities Act 1993 (the Act), as amended by

Basis of independent examiner’s statement

My examination was carried out in accordance with the 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 or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given 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 examiner's statement

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

requirements of the 1993 Act have not been met; or

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

M Watkinson

Michael Watkinson MBE Charity Financial Consultant 1 Cote House Farm Cottages Cote, Oxon OX18 2EQ

10[th] June 2022