**Draft Financial Statements at 15 March 2023 at 12:28:03**
**Charity Registration No. 1116798**
**Company Registration No. 05817856 (England and Wales)**
## **ETTINGTON PRE-SCHOOL LTD**
## **FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2022**
**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **CONTENTS**
||**Page**|
|---|---|
|Legal and administrative information|1|
|Report of the trustees|2 - 4|
|Independent examiner's report|5|
|Statement of financial activities|6|
|Balance sheet|7|
|Notes to the financial statements|8 - 11|
|Detailed profit and loss account|12 & 13|
**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Ms M L Crowe Mr D R Johnson Ms L J Yeates Ms L Lanoe Mrs L Holtom Mrs J McGettigan **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
(Appointed 7 October 2021) (Appointed 1 June 2022) (Appointed 1 June 2022)
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**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
The trustees present their annual report and financial statements for the year ended 31 August 2022.
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.
Pre-shool activities which recommenced following the lifting of Covid 19 restrictions in 2021 continued successfully in 2022. The before and after school group know as BASE, run by the Pre-school staff at Ettington C of E Primary School also continued. This provides a much needed service and in some respects allows Pre-school to be financially viable. BASE has a Manager who reports to the Pre-School Manager.
The Pre-school continues to benefit from external HR support which has allowed Clare, the manager, to update staff contracts and ensure that we are operating within the law. In addition a new Trustee who is now the Chairman of the Trustees, brings extensive HR experience from her job roles and has been an additional support for Clare.
Two key staff members left during the early part of 2022 and the roles were successfully recruited to by existing staff promotions/extended hours. Two members of staff undertook training to become Level 3 Practitioners, increasing the staff with this higher level of child development knowledge and greater resilience to Pre-school.
A new trustee undertaking the role of Treasurer, has been understanding the external payroll system and the trustees have been full informed of planned expenditure for 2023.
Again, as trustees, we thank Clare and the staff who have continued to do such a great job in challenging circumstances.
## **Fundraising activities**
Limited fundraising activities was resumed within the community in 2022. The Ettington Village Hall breakfast meeting donated funds and Pre-school staff and parents will be running a variety of stalls at the village Halloween Spooktacular to raise funds and awareness. It is hoped will be an annual event.
Whilst being mindful to maintain funds for the day to day running of Pre-school, Trustees recognise the need to refurbish current outside walkways for safety and improve outside play areas - a must for child development and a Pre-school requirement.
## **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.
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**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **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 £272,344 (2021 £214,163). Resources expended totalled £253,287 (2021 £242,114), leaving net incoming resources for the year of £19,057 (2021 £27,951 deficit).
## **Plans for future periods**
New Trustees have been appointed and it is hoped that there will be others within the community willing to join in 2023. New staff have been recruited during 2022. It is planned that two existing staff members will be increasing their hours in 2023, whilst continue their training to gain either a Level 3 qualification or an appropriate Degree in Childcare. Pre-school look forward to supporting them with this. Career development continues to be a focus for 2023.
The Articles of Association are being reviewed and updated.
Continued development of the buildings and equipment outdoor play areas are a priority including the access to the building itself. A separate flexible room/area to be used for staff downtime and 1-2-1 discussions to support individual children and parents with specific needs is also being considered.
## **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 (Resigned 19 May 2022) Ms L J Yeates Ms T A Colledge (Resigned 8 March 2022) Ms L Lanoe (Appointed 7 October 2021) Mrs L Holtom (Appointed 1 June 2022) Mrs J McGettigan (Appointed 1 June 2022)
## **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.
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. Trustees appointed in 2022 attended two days at pre-school with the staff only, supporting them with practical tasks and getting to know the Pre-school buildings and staff.
## **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.
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**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **Supplier payment policy**
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
- settle the terms of payment with suppliers when agreeing the terms of each transaction;
- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
- pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year.
The report was approved by the Board of Trustees.
..............................
## **Trustee**
Date: .............................................
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**Draft Financial Statements at 15 March 2023 at 12:28:03 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 2022.
## **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**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
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
.........................
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**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
97,685
-
Fees
**2**
174,646
-
Investments
**3**
13
-
**Total income**
272,344
-
**Expenditure on:**
Raising funds
-
1,510
Charitable activities
251,425
352
**Total expenditure**
251,425
1,862
**Net income/(expenditure) for**
**the year/**
**Net movement in funds**
20,919
(1,862)
Fund balances at 1 September
2021
84,254
69,918
**Fund balances at 31 August**
**2022**
105,173
68,056|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
97,685
110,111
-
174,646
104,049
-
13
3
-
272,344
214,163
-
1,510
-
1,549
251,777
240,151
414
253,287
240,151
1,963
19,057
(25,988)
(1,963)
154,172
110,242
71,881
173,229
84,254
69,918|**Total**
**2021**
**£**
110,111
104,049
3
214,163
1,549
240,565
242,114
(27,951)
182,123
154,172|
|---|---|---|
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.
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**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **BALANCE SHEET**
## _**AS AT 31 AUGUST 2022**_
|**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**|**£**
12,918
47,343
60,261
(7,066)|**2022**
**£**
120,034
53,195
173,229
68,056
105,173
173,229|**£**
9,221
29,228
38,449
(8,637)|**2021**
**£**
124,360
29,812|
|---|---|---|---|---|
|||||154,172|
|||||69,918
84,254|
|||||154,172|
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 2022.
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 .........................
..............................
## **Trustee**
**Company Registration No. 05817856**
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**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **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 amounts 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.
## **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.
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.
## **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.
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**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **1 Accounting policies**
## **(Continued)**
## **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 Fees**
|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**general**|general|
|||**2022**|2021|
|||**£**|£|
||Fees|172,304|103,908|
||Fundraising events|2,342|141|
||Fees|174,646|104,049|
|**3**|**Investments**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**general**|general|
|||**2022**|2021|
|||**£**|£|
||Investment income|13|3|
|**4**|**Net movement in funds**|**2022**|**2021**|
|||**£**|**£**|
||Net movement in funds is stated after charging/(crediting)|||
||Depreciation of owned tangible fixed assets|5,013|5,550|
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**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **5 Trustees**
There were no trustees' remuneration or other benefits for the year ended 31st August 2022 nor for the year ended 31st August 2021.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31st August 2022 nor for the year ended 31st August 2021.
## **6 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2022**
**Number**
17
**2022**
**£**
200,834
3,046
1,878
205,758|**2021**
**Number**
17|
|---|---|---|
|||**2021**
**£**
194,246
2,344
1,430|
|||198,020|
There were no employees whose annual remuneration was more than £60,000.
## **7 Tangible fixed assets**
|**Freehold land**
**and buildings**
**Improvements**
**to property**
**Fixtures,**
**fittings and**
**equipment**
**£**
**£**
**£**
**Cost**
At 1 September 2021
41,281
86,670
69,918
Additions
-
-
687
At 31 August 2022
41,281
86,670
70,605
**Depreciation and impairment**
At 1 September 2021
-
26,256
47,253
Depreciation charged in the year
-
1,510
3,503
At 31 August 2022
-
27,766
50,756
**Carrying amount**
At 31 August 2022
41,281
58,904
19,849
At 31 August 2021
41,281
60,414
22,665|**Total**
**£**
197,869
687|
|---|---|
||198,556|
||73,509
5,013|
||78,522|
||120,034|
||124,360|
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**Draft Financial Statements at 15 March 2023 at 12:28:03 ETTINGTON PRE-SCHOOL LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
## **8 Debtors**
|**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income|**2022**
**£**
12,307
611
12,918|**2021**
**£**
8,810
411|
|---|---|---|
|||9,221|
## **9 Creditors: amounts falling due within one year**
|Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2022**
**£**
1,305
3,530
611
1,620
7,066|**2021**
**£**
834
5,963
340
1,500|
|---|---|---|
|||8,637|
## **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:
|||**Balance at**|**Resources**|**Balance at**|**Resources**|**Balance at**|
|---|---|---|---|---|---|---|
||**1**|**September**|**expended**
**1 September**||**expended**|**31 August**|
|||**2020**||**2021**||**2022**|
|||**£**|**£**|**£**|**£**|**£**|
|Restricted funds||71,881|(1,963)|69,918|(1,862)|68,056|
## **11 Unrestricted funds - designated**
These are unrestricted funds which are material to the charity's activities made up as follows:
|||**Balance at**|**Incoming**|**Resources**|**Balance at**|**Incoming**|**Resources**|**Balance at**|
|---|---|---|---|---|---|---|---|---|
||**1**|**September**|**resources**|**expended**
**1 September**||**resources**|**expended**|**31 August**|
|||**2020**|||**2021**|||**2022**|
|||**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|General|||||||||
|funds||110,242|214,163|(240,151)|84,254|272,344|(251,425)|105,173|
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## **ETTINGTON PRE-SCHOOL LTD**
## **DETAILED TRADING AND PROFIT AND LOSS ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Fundraising
Donations
Fees
**Investment income**
Investment income
**Charitable activities**
Grants
**Total incoming resources**
**RESOURCES EXPENDED**
**Charitable activities**
Staff salaries
Social security
Pensions
Rates and water
Insurance
Light and heat
Postage and stationery
Advertising
Milk and provisions
Sundries
Repairs, maintenance and cleaning
Equipment and toys
IT
Training
Hire of venue and rent
Toddlers
Educational payments
Outings
Improvements to property
Fixtures and fittings|**£**
2,342
144
172,304
97,541
200,834
3,046
1,878
2,046
1,632
1,547
146
40
5,138
5,541
5,818
919
1,591
2,519
7,754
194
297
230
1,862
3,151|**2022**
**2021**
**£**
**£**
**£**
141
103,908
174,790
104,049
13
3
110,111
97,541
110,111
272,344
214,163
194,246
2,344
1,430
2,221
1,819
1,543
208
39
1,488
5,498
8,798
890
1,926
1,595
3,400
142
283
1,963
3,587
246,183
233,420|
|---|---|---|
This page does not form part of the statutory financial statements
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## **ETTINGTON PRE-SCHOOL LTD**
## **DETAILED TRADING AND PROFIT AND LOSS ACCOUNT** _**FOR THE YEAR ENDED 31 AUGUST 2022**_
|**Support costs**
**Finance**
Bank charges and interest
**Governance costs**
Independent examiner's fee
Accountants fees
Bookkeeping and payroll
**Total resources expended**
**Net income**|**£**
-
1,620
5,484|**2022**
**2021**
**£**
**£**
**£**
-
8,694
7,104
8,694
253,287
242,114
19,057
-27,951|
|---|---|---|
This page does not form part of the statutory financial statements
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