2022-12-31-accounts

Charity registration number 1114491

Company registration number 05751567 (England and Wales)

LITTLE OWL PRE SCHOOL LIMITED

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022

The Trustees present their annual report and financial statements for the year ended 31 December 2022.

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

The 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:

• 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.

• 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.

• Instigating and adhering to and furthering the aim of the pre school.

For furtherance of this aim the pre school may:

• Provide accommodation and equipment and engage staff.

• Raise money to pay for pre school activities.

• Make such payments as shall be necessary.

• Fix and collect fees in respect of children attending groups run by the pre school.

• Control the admission of children to the groups run by the pre school and, if appropriate, require parents or guardians to withdraw them.

• 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

This year has proved difficult financially hence the increased loss. This has been due to a number of factors and looks to be a continuing trend threatening the sustainability of Little Owl in the long term.

Once again the minimum wage has increased by a huge amount yet funding from the local authority has barely increased.

Due to the cost of living crisis all our consumables are costing more despite shopping carefully. No unnecessary purchases are being made in an effort to keep spending down.

Parents are less inclined to access increased hours until their child is fully funded and there is a big discrepancy between our hourly rate and the amount of funding received per hour.

Numbers of children remain fairly low and we are able to accommodate all children who wish to attend and therefore there is no waiting list. More and more parents are looking for full day care to suit their working hours. The future of pre schools across the country is uncertain especially given that many schools are beginning to offer provision for 2 years olds within their premises too.

Thankfully Woodhouse Eaves Baptist Church have not increased our rent despite the hike in the cost of energy. We do however provide other benefits to them such as weekly cleaning and providing toilet supplies to be used by other users of the building.

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.

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LITTLE OWL PRE SCHOOL LIMITED

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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' report was approved by the Board of Trustees.

Mrs V Corcoran

Trustee Dated: 6 June 2023

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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 2022, 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:

• (i) examine the financial statements under section 145 of the 2011 Act;

• (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

• (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:

• (a) which gives me reasonable cause to believe that in any material respect the requirements:

• (i) to keep accounting records in accordance with section 386 of the Companies Act 2006; and

• (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;

• have not been met; or; or

• (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: 9 June 2023

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LITTLE OWL PRE SCHOOL LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted funds Notes £ Income from: Charitable activities 3 33,081 Expenditure on: Charitable activities 4 38,713 Total resources expended 38,713 Net expenditure for the year/ Net movement in funds (5,632) Fund balances at 1 January 2022 21,372 Fund balances at 31 December 2022 15,740	Total 2021 £ 39,190 40,596 40,596 (1,406) 22,778 21,372

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 2022

Notes Current assets Cash at bank and in hand Liabilities Creditors: amounts falling due within one year 6 Net current assets Charity funds Unrestricted funds Total Charity funds	2022 £ 23,266 (7,526)	£ 15,740 15,740 15,740	2021 £ 29,368 (7,996)	£ 21,372
				21,372
				21,372

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 by the Trustees on 6 June 2023 and are signed on its behalf by:

Mrs V Corcoran R Bushnell Trustee Trustee

Company registration number 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 2022

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 amounts 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 2022

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 2021 Unrestricted funds	2022 £ 28,409 4,672 33,081 33,081 39,190	2021 £ 27,728 11,462
		39,190
		39,190

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LITTLE OWL PRE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

4 Charitable activities

	Costs of	Costs of
	charitable	charitable
	activities	activities
	2022	2021
	£	£
Staff costs	30,091	31,284
Children's activities	-	62
Food and drink	778	1,245
Rent	4,995	5,265
Insurance	565	588
Payroll and auto enrolment fees	1,260	769
Independent examination fees	840	840
Cleaning	88	109
Sundry expenses	96	299
Training	-	135
	38,713	40,596
	38,713	40,596

5 Employees

The average monthly number of employees during the year was:

	2022	2021
	Number	Number
Day to day running of pre school	5	5
	2022	2021
	£	£
Wages and salaries	29,807	31,074
Pension costs	284	210
	30,091	31,284

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 2022

6 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Notes Other taxation and social security Deferred income 7 Accruals Deferred income Arising from LEA funding	2022 £ 60 6,314 1,152 7,526 2022 £ 6,314	2021 £ 8 6,896 1,092
		7,996
		2021 £ 6,896

7 Deferred income

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