Charity Registration No. 1114491
Company Registration No. 05751567 (England and Wales)
LITTLE OWL PRE SCHOOL LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
LITTLE OWL PRE SCHOOL LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mrs V Corcoran R Bushnell Charity number 1114491 Company number 05751567 Principal address The Baptist Church Main Street Woodhouse Eaves Loughborough Leics LE12 8RZ Independent examiner Newby Castleman LLP 6 Forest Road Loughborough Leicestershire LE11 3NP
LITTLE OWL PRE SCHOOL LIMITED
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the accounts | 6 - 9 |
LITTLE OWL PRE SCHOOL LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees present their annual report and financial statements for the year ended 31 December 2021.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's governing document, the Companies Act 2006 and “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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
Objectives and activities
T he aim of the pre school is to enhance the development and education of children, primarily under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups by:
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Offering appropriate play facilities together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children, regardless of race, culture, religion or means.
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Encouraging the study of the needs of such children and their immediate families and promoting public interest in and recognition of such needs in the local areas.
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Instigating and adhering to and furthering the aim of the pre school.
F or furtherance of this aim the pre school may:
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Provide accommodation and equipment and engage staff.
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Raise money to pay for pre school activities.
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Make such payments as shall be necessary.
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Fix and collect fees in respect of children attending groups run by the pre school.
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Control the admission of children to the groups run by the pre school and, if appropriate, require parents or guardians to withdraw them.
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Take such other action to benefit the pre school.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
Achievements and performance
Financial review
Numbers of children attending Little Owl remained low during 2021. This was in some part due to parents being reluctant for their children to mix with groups of children for fear of them transmitting Covid. Numbers did pick up a little in September with quite a few new starters however almost all of these children only had year before starting school and the rate paid for their place by the local authority was quite a bit lower than our usual fees of £5 per hour.
In April 2021 the minimum wage increased again by a significant amount which meant increasing staff wages were our biggest outgoing expense.
Fortunately the rent payable for use of the Baptist church has remained the same but may have to be increased at some future point due to the current escalating fuel prices.
We will continue to evaluate all spending in order for Little Owl to remain sustainable in the long term.
It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level at least equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised.
The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
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LITTLE OWL PRE SCHOOL LIMITED
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021
Structure, governance and management
The Charity is a company limited by guarantee.
New trustees are appointed by the existing trustees in accordance with the needs of the charity. The existing trustees will assess the ability of the new trustees and will carry out the necessary checks before appointment commences.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The overall management and control of the pre school shall vest in the trustees, who may delegate management responsibilities to a management committee which shall be responsible for the day to day management of the pre school.
The board of trustees shall at all time consist of at least two directors, a Chair, a Treasurer and a Secretary.
The trustees shall hold at least three meetings each year unless they decide by simple majority to hold fewer or further meetings. Trustees shall each have one vote and in the event a tie, the chair shall have the casting vote.
These accounts have been prepared in accordance with the special provision relating to small companies within Part 15 of the Companies Act 2006.
The Trustees' r eport was approved by the Board of Trustees.
Mrs V Corcoran
Trustee Dated: 4 May 2022
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LITTLE OWL PRE SCHOOL LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF LITTLE OWL PRE SCHOOL LIMITED
I report on the financial statements of the Charity for the year ended 31 December 2021, which are set out on pages 4 to 9.
Respective responsibilities of Trustees and examiner
The Trustees, who are also the directors of Little Owl Pre School Limited for the purposes of company law, are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144(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:
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(i) examine the financial statements under section 145 of the 2011 Act;
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(ii) to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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(iii) to state whether particular matters have come to my attention.
Basis of independent examiner's report
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 financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, 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 financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
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(a) which gives me reasonable cause to believe that in any material respect the requirements:
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(i) to keep accounting records in accordance with section 386 of the Companies Act 2006; and
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(ii) to prepare financial statements which accord with the accounting records, 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;
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have not been met; or; or
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(b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Mrs Annalise Lovett FCCA Newby Castleman LLP 6 Forest Road Loughborough Leicestershire LE11 3NP
Dated: 6 May 2022
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LITTLE OWL PRE SCHOOL LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted funds Notes £ Income from: Charitable activities 3 39,190 Expenditure on: Charitable activities 4 40,596 Total resources expended 40,596 Net (expenditure)/income for the year/ Net movement in funds (1,406) Fund balances at 1 January 2021 22,778 Fund balances at 31 December 2021 21,372 |
Total 2020 £ 47,369 39,103 39,103 8,266 14,512 22,778 |
|---|---|
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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LITTLE OWL PRE SCHOOL LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
| Notes Current assets Cash at bank and in hand Creditors: amounts falling due within one year 6 Net current assets Charity funds Unrestricted funds Total charity funds |
2021 £ 29,368 (7,996) |
£ 21,372 21,372 21,372 |
2020 £ 28,532 (5,754) |
£ 22,778 22,778 22,778 |
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and authorised by the board of Trustees on 4 May 2022 and are signed on its behalf by:
| Mrs V Corcoran | R Bushnell |
|---|---|
| Trustee | Trustee |
Company Registration No. 05751567
The notes on pages 6 - 9 form part of these financial statements.
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LITTLE OWL PRE SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
Company information
Little Owl Pre School Limited is a private company limited by guarantee incorporated in England and Wales. The registered office and place of business is given in the legal and administrative information page of these financial statements.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.
1.4 Incoming resources
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount.
1.5 Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
1.6 Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
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LITTLE OWL PRE SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
2 Critical accounting estimates and judgements
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Charitable activities
| LEA funding Fees Analysis by fund Unrestricted funds For the year ended 31 December 2020 Unrestricted funds |
2021 £ 27,728 11,462 39,190 39,190 47,369 |
2020 £ 41,984 5,385 47,369 47,369 |
|---|---|---|
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LITTLE OWL PRE SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
4 Charitable activities
| Costs of | Costs of | |
|---|---|---|
| charitable | charitable | |
| activities | activities | |
| 2021 | 2020 | |
| £ | £ | |
| Staff costs | 31,284 | 30,321 |
| Children's activities | 62 | 85 |
| Food and drink | 1,245 | 749 |
| Rent | 5,265 | 5,114 |
| Insurance | 588 | 552 |
| Payroll and auto enrolment fees | 769 | 1,008 |
| Independent examination fees | 840 | 840 |
| Cleaning | 109 | 216 |
| Sundry expenses | 299 | 65 |
| Training | 135 | 153 |
| 40,596 | 39,103 | |
| 40,596 | 39,103 | |
| Employees | ||
| The average monthly number of employees during the year was: | ||
| 2021 | 2020 | |
| Number | Number | |
| Day to day running of pre school | 5 | 5 |
| 2021 | 2020 | |
| £ | £ | |
| Wages and salaries | 31,074 | 30,067 |
| Pension costs | 210 | 254 |
| 31,284 | 30,321 |
5 Employees
There were no employees whose annual remuneration was £60,000 or more.
None of the trustees (or any persons connected with them) received any remuneration or reimbursement of expenses during the year.
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LITTLE OWL PRE SCHOOL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
| 6 Creditors: amounts falling due within one year Notes Other taxation and social security Deferred income 7 Accruals 7 Deferred income Arising from LEA funding |
2021 £ 8 6,896 1,092 7,996 2021 £ 6,896 |
2020 £ 256 4,466 1,032 5,754 2020 £ 4,466 |
|---|---|---|
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