**Charity Registration No. 1116798** **Company Registration No. 05817856 (England and Wales)** ## **ETTINGTON PRE-SCHOOL LTD** **UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021** **ETTINGTON PRE-SCHOOL LTD** ## **CONTENTS** ||**Page**| |---|---| |Legal and administrative information|1| |Report of the trustees|2 - 3| |Independent examiner's report|4| |Statement of financial activities|5| |Balance sheet|6| |Notes to the financial statements|7 - 11| |Detailed profit and loss account|12 & 13| ## **ETTINGTON PRE-SCHOOL LTD** ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **Trustees** Ms M L Crowe Mr D R Johnson Mr Z Cichocki Ms L J Yeates Ms L Lanoe (Appointed 7 October 2021) **Charity number** 1116798 **Company number** 05817856 **Registered office** Churchill Close Ettington Stratford upon Avon Warwickshire CV37 7SP **Independent examiner** Grineaux Accountants Limited 20 Market Hill Southam Warwickshire CV47 0HF - 1 - ## **ETTINGTON PRE-SCHOOL LTD** ## **REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_ The trustees present their annual report and financial statements for the year ended 31 August 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Articles of Association , 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) " (effective 1 January 2019 ). ## **Objectives and aims** To enhance the development and education of children under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups. The pre-school's main objective is to provide a pre-school setting for all children in the Ettington and surrounding area to attend. This enables the children to prepare themselves for their progression to primary school. Children of all abilities and backgrounds are encouraged to attend and all their needs are accommodated. If the carers of some children have financial constraints then the pre-school has the ability to offer a limited number of free sessions. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Significant activities** In accordance with its objectives, the Charity has continued to maintain its ability to offer play facilities and education of children, by providing two classrooms - one for the rising fours and another for the younger children. In March 2021 all children returned to Pre-school and activities were beginning to return to 'normal'. The before and after school operation run by the Pre-school staff at Ettington C of E Primary School also returned in March, although there were restrictions on numbers due to staffing and Covid restrictions. This continues to provide a considerable income and in some respects allows Pre-school to be financially viable. Pre-school has benefited from external HR support which has allowed Clare, the manager, to update staff contracts and ensure that we are operating within the law. In terms of staffing, Gill, the Deputy moved to Scotland to become a manager in another pre-school setting and Jess, an excellent member of staff, was promoted to take her place in the Summer as well as to manage BASE. Clare and Trace, a new trustee and treasurer, worked to develop a new business plan. They liaised with our external payroll and bookkeeping parents to update our systems. There was also an opportunity to change accountants and Grineaux Accountants Limited, in Southam, were appointed. Again, as trustees, we thank Clare and the staff who have continued to do such a great job in challenging circumstances. ## **Fundraising activities** Due to pandemic, this has been very limited but we thank all parents and staff for their time and effort to make Pre-school viable and successful. ## **Public benefit** The Charities Act 2011 requires that registered charities demonstrate how they satisfy the core legal requirement of public benefit. The activities of the charity in pursuit of its object must benefit the community or a sufficient section of the community. - 2 - ## **ETTINGTON PRE-SCHOOL LTD** ## **REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_ ## **Financial review** We aim to maintain contingency reserves of between 2 and 3 months operational expenses, in line with PreSchool Learning Alliance Guidance. Details of transactions and the financial position of the Charity are set out in the attached accounts. Income from all sources amounted to £214,163 (2020 £268,876). Resources expended totalled £242,114 (2020 £243,192), leaving net incoming resources deficit for the year of £27,951 (2020 £25,684). ## **Plans for future periods** We very much hope that we can appoint new trustees over the next very and that new staff can be recruited whilst existing staff can take on responsibilities. The Articles of Association are being reviewed and updated. Continued development of the buildings, equipment outdoor play areas are a priority. ## **Structure, governance and management** The charity is a company limited by guarantee and is governed by the Articles of Association, which were adopted on 16th May 2006. These are in the process of being updated. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Ms M L Crowe Mr D R Johnson Mr Z Cichocki Ms L J Yeates Ms T A Colledge (Resigned 8 March 2022) Ms L Lanoe (Appointed 7 October 2021) ## **Recruitment and appointment of new trustees** This is being updated so as to make it more welcoming to new trustees, particularly parents of children at Preschool. ## **Induction and training of new trustees** New trustees undergo an orientation process to brief them on their legal obligations under charity law, the Charity's governing documents, the committee and decision-making processes, the business plan and recent financial performance of the Charity. During the induction process they meet key employees and other trustees. Trustees are encouraged to attend appropriate external and internal training events which will assist them in carrying out their role. The report was approved by the Board of Trustees. ## **Mr Z Cichocki** ## **Trustee** 17 May 2022 - 3 - ## **ETTINGTON PRE-SCHOOL LTD** ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ETTINGTON PRE-SCHOOL LTD** I report to the trustees on my examination of the financial statements of Ettington Pre-School Ltd for the year ended 31 August 2021. ## **Responsibilities and basis of report** As the charity trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act). Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. ## **James Freeman** ## **Grineaux Accountants Limited** 20 Market Hill Southam Warwickshire CV47 0HF 17 May 2022 - 4 - ## **ETTINGTON PRE-SCHOOL LTD** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2021**_ |**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
110,111
-
Other trading activities
**2**
104,049
-
Investments
**3**
3
-
**Total income**
214,163
-
**Expenditure on:**
Raising funds
-
1,549
Charitable activities
240,151
414
**Total resources expended**
240,151
1,963
**Net (expenditure)/income**
**for the year/**
**Net movement in funds**
(25,988)
(1,963)
Fund balances at 1
September 2020
110,242
71,881
**Fund balances at 31 August**
**2021**
84,254
69,918|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2020**
**2020**
**£**
**£**
**£**
110,111
110,029
-
104,049
158,751
-
3
96
-
214,163
268,876
-
1,549
-
1,589
240,565
241,116
487
242,114
241,116
2,076
(27,951)
27,760
(2,076)
182,123
82,482
73,957
154,172
110,242
71,881|**Total**
**2020**
**£**
110,029
158,751
96
268,876
1,589
241,603
243,192
25,684
156,439
182,123| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 5 - ## **ETTINGTON PRE-SCHOOL LTD** ## **BALANCE SHEET** ## _**AS AT 31 AUGUST 2021**_ |**Notes**
**Fixed assets**
Tangible assets
**7**
**Current assets**
Debtors
**8**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**9**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**10**
Unrestricted funds - general
**11**|**£**
9,221
29,228
38,449
(8,637)|**2021**
**£**
124,360
29,812
154,172
69,918
84,254
154,172|**£**
12,203
50,584
62,787
(10,575)|**2020**
**£**
129,911
52,212
182,123
71,881
110,242
182,123| |---|---|---|---|---| The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2021. 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 charitable companies subject to the small charitable companies regime. The financial statements were approved by the Trustees on 17 May 2022 ## **Mr Z Cichocki Trustee** ## **Company Registration No. 05817856** - 6 - ## **ETTINGTON PRE-SCHOOL LTD** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2021**_ ## **1 Accounting policies** ## **Charity information** Ettington Pre-School Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Churchill Close, Ettington, Stratford upon Avon, Warwickshire, CV37 7SP. ## **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 charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows. 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 financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **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 subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are 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 Income** 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. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 7 - ## **ETTINGTON PRE-SCHOOL LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_ ## **1 Accounting policies** ## **(Continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings No depreciation provided Improvements to property 2.5% reducing balance Fixtures, fittings and equipment 15% reducing balance The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities . ## **1.7 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **2 Other trading activities** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**general**|general| ||**2021**|2020| ||**£**|£| |Fees|103,908|157,804| |Fundraising events|141|947| |Other trading activities|104,049|158,751| ## **3 Investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**general**|general| ||**2021**|2020| ||**£**|£| |Investment income|3|96| - 8 - ## **ETTINGTON PRE-SCHOOL LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_ |**4**|**Net movement in funds**|**2021**|**2020**| |---|---|---|---| |||**£**|**£**| ||Net movement in funds is stated after charging/(crediting)||| ||Depreciation of owned tangible fixed assets|5,550|6,296| ## **5 Trustees** There were no trustees' remuneration or other benefits for the year ended 31st August 2021 nor for the year ended 31st August 2020. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 31st August 2021 nor for the year ended 31st August 2020. ## **6 Employees** The average monthly number of employees during the year was: |**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2021**
**Number**
17
**2021**
**£**
194,246
2,344
1,430
198,020|**2020**
**Number**
17
**2020**
**£**
192,934
5,135
1,887
199,956| |---|---|---| There were no employees whose annual remuneration was more than £60,000. - 9 - ## **ETTINGTON PRE-SCHOOL LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_ |**7**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**Improvements**
**to property**
**Fixtures,**
**fittings and**
**equipment**
**£**
**£**
**£**
**Cost**
At 1 September 2020
41,281
86,670
69,918
At 31 August 2021
41,281
86,670
69,918
**Depreciation and impairment**
At 1 September 2020
-
24,707
43,252
Depreciation charged in the year
-
1,549
4,001
At 31 August 2021
-
26,256
47,253
**Carrying amount**
At 31 August 2021
41,281
60,414
22,665
At 31 August 2020
41,281
61,963
26,667
**8**
**Debtors**
**2021**
**Amounts falling due within one year:**
**£**
Other debtors
8,810
Prepayments and accrued income
411
9,221
**9**
**Creditors: amounts falling due within one year**
**2021**
**£**
Other taxation and social security
834
Trade creditors
5,963
Other creditors
340
Accruals and deferred income
1,500
8,637|**Total**
**£**
197,869
197,869
67,959
5,550
73,509
124,360
129,911
**2020**
**£**
11,067
1,136
12,203
**2020**
**£**
1,308
6,279
481
2,507
10,575| |---|---| - 10 - ## **ETTINGTON PRE-SCHOOL LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2021**_ ## **10 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: ||**Incoming**||**Balance at**|**Transfers**|**Balance at**| |---|---|---|---|---|---| ||**resources**|**1**|**September**||**31 August**| ||||**2020**||**2021**| ||**£**||**£**|**£**|**£**| |Restricted fund|-||71,881|(1,963)|69,918| ## **11 Unrestricted funds - designated** These are unrestricted funds which are material to the charity's activities made up as follows: ||**Incoming**||**Balance at**|**Incoming**|**Resources**|**Balance at**| |---|---|---|---|---|---|---| ||**resources**|**1**|**September**|**resources**|**expended**|**31 August**| ||||**2020**|||**2021**| ||**£**||**£**|**£**|**£**|**£**| |General funds|-||110,242|214,163|(240,151)|84,254| - 11 -