7 November 2023 ## Polstead Preschool Oxford Chair Report for Academic Year 2022/2023 ## **1. Overview** The academic year 1 September 2022 to 31 August 2023 has been a challenging time at Polstead Preschool. The preschool has faced significant difficulties with less demand for preschool places and in recruiting qualified staff. In addition, it is always a challenge to provide a safe, stimulating and fun environment for the children while at the same time meeting the requirements of the Early Years Foundation Stage (EYFS) and other relevant legislation. A challenge which the management committee and staff have excelled at over the year. ## **2. Financials** Polstead Preschool recorded a large deficit for the 2022/2023 school year of £19,981 and as a result it was decided to increase fees from January 2024. Increases to expenditure, most notably, staff salaries and rent, remain a challenge for the preschool. ## **3. Staff** Polstead Preschool prides itself on its staff and remains committed to recruiting and developing highly skilled and competent professionals to ensure children are given the best opportunity to thrive whilst at the setting. There have been minimal changes to staff over the year. A number of courses have been completed by the staff in the academic year in order to develop their skills and ensure compliance with legislation. The supervisor is currently studying towards a masters degree, the deputy supervisor towards a level 5 childcare qualification and an early years educator qualified at level 3 and is now studying towards a level 4 qualification. This training is being funded by the preschool. ## **4. Admissions** Over the past three years Polstead Preschool has struggled to start the school year with high numbers of children due to very low numbers on the waiting list. Numbers do pick up through the year but this does cause a disruption to staffing levels and provides challenges in the settling in processes. A target has been set for the next academic year to raise our profile in the community by circulating pamphlets and advertising on the relevant websites. Charity number: 1114438, Ofsted URN: 133989 Chair Report 2022/2023 Page 1 of 3 7 November 2023 |**Month**|**2023**|**2023**|**2023**|**2022**|**2022**|**2022**| |---|---|---|---|---|---|---| ||**Children**|**Hours**|**Amount**|**Children**|**Hours**|**Amount**| |Sep|15|1,230|£2,467|29|2,256|£20,274| |Oct|16|993|£7,257|30|1,947|£13,134| |Nov|17|1,392|£8,087|29|2,661|£12,104| |Dec|16|885|£884|29|1,581|£415| |Jan|19|1,563|£11,346|28|2,151|£19,741| |Feb|19|1,164|£6,215|28|1,851|£7,086| |Mar|21|1,917|£8,731|28|2,874|£13,603| |Apr|23|972|£222|31|1,326|£1,516| |May|26|1,731|£9,125|28|2,178|£24,266| |Jun|26|1,983|£24,923|29|2,379|£13,969| |Jul|26|1,557|£1,347|29|1,755|£1,089| |Aug|0|0|£358|0|0|£8,042| |**Total**|**18.67**|**15387**|**£80,961**|**26.5**|**22959**|**£135,239**| ## **5. Billing** Some changes made to the Cura system has helped with efficiencies in the billing process. More system enhancements have been scheduled for the new school year. ## **6. Fundraising and Events** The year kicked off with a fantastic Nativity play. The event raised around £320 for the preschool and much enjoyment was had by all, especially the children. Other events held were: - Christmas party - Sports day - Summer party ## **7. Investments** In the year, Polstead Preschool has made minor investments in preschool resources, for example, toys, stationery items, arts and crafts resources and learning kits, and, in conjunction with the St Margaret's Institute, refurbished the outside space to be more enjoyable for the children. ## **8. Summary** In summary the 2023 academic year has been a challenging one but the work done over the school year will ensure that Polstead Preschool remains well-regarded in the local community and will Charity number: 1114438, Ofsted URN: 133989 Chair Report 2022/2023 Page 2 of 3 7 November 2023 continue to be known as an excellent provider of childcare services. Lastly, I wish to formally thank the staff, my fellow committee members and our wonderful parents for their passion and energy in making Polstead Preschool a valued and respected childcare provider in the community. I wish to also congratulate Anna for taking on the chair role as I step down after the AGM. I will remain on committee to support the preschool moving forward and to help with any handover processes. Will Fiennes Chair Charity number: 1114438, Ofsted URN: 133989 Chair Report 2022/2023 Page 3 of 3 Summary ## **Polstead Preschool Oxford** ## **Income and Expenditure** |**1 Sep 2022 to 31 Aug 2023**
**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**
Accumulated Depreciation
Administration
Bank Charges
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_**
**_Surplus (Deficit)_**|**2023**
**2022**|**2023**
**2022**| |---|---|---| ||£44,665
£36,296
£760|£70,918
£63,431
£440
£450| ||**_£81,721_**
**_£135,239_**
**_£0_**
**_£0_**
**_£81,721_**
**_£135,239_**|| ||£12,747
£60
£654
£846
£803
£2,019
£64,125
£29
£6
£12,637
£100
£218
£317
£7,140|£318
£10,988
£1,587
£172
£532
£780
£1,812
£77,880
£6
£50
£11,925
£42
£205
£539
£60| ||**_£101,702_**
**_£106,895_**
**_-£19,981_**
**_£28,344_**|| 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
Deposits Refunded
**_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 2023**
**31 Aug 2022**|**31 Aug 2023**
**31 Aug 2022**| |---|---|---| ||£77,509
£91,651|£99,740
£90,972| ||**_£169,160_**
**_£190,712_**
**_£0_**
**_£0_**|| ||£0|£0| ||**_£0_**
**_£0_**
**_£169,160_**
**_£190,712_**|| ||£11,700
-£7,600|£10,300
-£6,500| ||**_£4,100_**
**_£3,800_**
**_£0_**
**_£0_**
**_£4,100_**
**_£3,800_**|| ||£145,766
-£19,981
£39,275|£119,972
£28,344
£38,597| ||**_£165,060_**
**_£186,912_**
**_£165,060_**
**_£186,912_**|| Page 2 Summary ## **Notes to the accounts** ## **For year ended 31 Aug 2023** ## 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 on purchases, 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 (Treasurer) for administration services to the value of £11,778 and for web services through Canalside Technology Limited (UK company number 11817774) to the value of £594. - Ms Klara Fergusson (Secretary) is also a paid employee in the role of Assistant Supervisor. ## 3. Income. Income was significantly lower for the year due to reduced numbers of attended hours. Hourly rates were kept at the same level as the previous year but will be increased in Jan 2024 to £5.75 per hour. Sales reflect the sale of T-shirts and various articles produced by the children to parents. Efforts were made towards the end of the school year to raise the awareness of the preschool in the local area by distributing pamphlets and advertising on local websites. ## 4. Staff costs. ||**2023**|**2022**| |---|---|---| |Payroll – Salary & Wages|£54,210|£66,267| |Payroll Employer Taxes & Deductions|£5,481|£6,453| |Payroll – Employer's Share of Benefits|£4,433|£5,160| ||**£64,125**|**£77,880**| 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: Sep to Dec - £62 per day, Jan to Aug - £68 per day. SMI have notified the Preschool that rates will be increased in the 2024 school year to £72 per day. ## 6. Training. Funding of £1,408 was allocated to AL to complete an 18 month level 3 Diploma in Leadership for the Children and Young People's Workforce. Agreed payment schedule: £352 1 Oct 2022, £352 1 Apr 2023, £352 1 Oct 2023, £352 1 Apr 2024. £995 was paid in Sep 2022 for a Level 4 Advanced Practitioner course for AL. £11,090 (£90 application fee + £5,400 2022/2023 tuition fees, £5,600 2023/2024 tuition fees) UCL Masters course for AH. ## 7. Reserves. The reserves of the preschool are represented by the unrestricted and restricted funds. The total funds held by the preschool at the end of the year are £165,060. The following amounts have been set aside for planned initiatives over the next three years: £24,000 – Upgrading of current IT systems. £12,000 – Preschool resources. £5,800 – Office refurbishment The charity maintains a policy of retaining a minimum of £65,000 in reserves as this is the amount which would be required for an orderly wind up of the preschool if it was required to cease trading for any reason. This amount is reviewed annually. The trustees are conscious that there is a level of school roll below which the school is no longer financially viable and if the school roll falls below this level they will consider orderly wind up. Page 4 ## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF POLSTEAD PRESCHOOL, OXFORD (CHARITY No. 1114438) FOR THE YEAR ENDED 31 AUGUST 2023** ## **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 24[th ] June 2024