## **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:
- Mr MJ Kovacevich for administration services to the value of £8,208 and for web services through Canalside Technology Limited (UK company number 11817774) to the value of £387.
- Ms Klara Fergusson is also a paid employee in the role of supervisor.
## 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
- s.28 of the Charities Act 2006) and that an independent examination is needed. It is my responsibility to:
- examine the accounts (under section 43 of the Act, as amended)
- follow the procedures laid down in the General Directions given by the Charity Commission (under section
- 43(7)(b) of the Act, as amended), and
- state whether particular matters have come to my attention.
## **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:
- (1) which gives me reasonable cause to believe that in any material respect the requirements to:
- keep accounting records in accordance with section 41 of the 1993 Act; and
- prepare accounts which accord with the accounting records and comply with the accounting
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