**SPRINGHILL PRE-SCHOOL TRUSTEES’ ANNUAL REPORT Review of the Academic Year to 31 August 2022** ## **1. Introduction** The Trustees of Springhill Pre-School present their Annual Report for the academic year 1 September 2021 to 31 August 2022. This report outlines the charity’s objectives, activities, achievements, financial performance, and the circumstances leading to the decision to dissolve the charity. ## **2. Objectives and Activities** Springhill Pre-School aims to provide high-quality early years education within a safe, nurturing, and stimulating environment. The charity delivers the Early Years Foundation Stage (EYFS) curriculum, supporting children’s development through structured learning, play-based activities, and strong partnerships with families and the wider community. ## **3. Public Benefit** The Trustees confirm that they have complied with their duty under section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit. The Pre-School provided accessible early years education to families in the local community, supporting children’s social, emotional, and educational development. ## **4. Achievements and Performance** ## **Intake and Occupancy** The Pre-School’s intake increased by 10 children, reaching 30 by the end of the academic year. However, the Local Authority advised that birth rates across the island had fallen, with projections showing continued decline until at least 2025. This resulted in surplus school places locally and a significant drop in demand for early years provision. By September 2022, occupancy had fallen to **22%** , rendering the Pre-School financially unsustainable. ## **Covid-19 Measures** From September 2021, the Pre-School reopened fully with enhanced safety measures, including: - One-way system for drop-off and collection - Increased cleaning schedules - Mandatory handwashing and temperature checks - Maximising outdoor learning time These measures ensured a safe environment for children, families, and staff. ## **Staffing** The Pre-School began the year with: - 2 full-time staff - 1 part-time staff - - 1 bank staff An apprentice was recruited but did not take up the position. The manager was absent due to illness for approximately two-thirds of the year, with the deputy manager covering the role throughout this period. Despite these challenges, staff continued to deliver high-quality care and education. ## **Resources** Aside from routine operational costs, there were **no significant items of expenditure** during the year. ## **Site and Future Planning** There were ongoing discussions regarding the possible purchase of the Pre-School site by the Diocese for the benefit of the adjoining school. Both the Diocese and the school assured Trustees that a lease would be offered to allow the Pre-School to continue operating. Trustees monitored the situation closely. ## **5. Financial Review** At year end: - Scottish Widows account: **£41,254** - Lloyds accounts: **£15,868** The Trustees managed funds prudently throughout the year, ensuring that the Pre-School met all financial obligations. The charity maintained appropriate financial controls and continued to monitor expenditure carefully throughout the academic year. ## **6. Reserves Policy** The charity-maintained reserves to ensure stability and continuity of service. However, the projected decline in occupancy and income means that reserves alone cannot sustain long-term operations. ## **7. Risk Management** Key risks identified during the year included: - Falling birth rates and reduced demand for early years provision - Uncertainty regarding the site’s ownership - Staffing pressures due to long-term sickness - Financial unsustainability caused by low occupancy Trustees took all reasonable steps to mitigate these risks, including engaging with the Local Authority, Diocese, Holy Cross Primary School, parents, and local councillors. ## **8. Decision to Dissolve the Charity** After extensive consultation and exploration of all possible options, the Trustees concluded that the Pre-School was no longer viable. “We have… taken the hardest of decisions to dissolve the charity.” The Trustees express their sincere gratitude to the dedicated staff team for their years of service and commitment to the children and families of the community. ## **9. Trustees’ Responsibilities Statement** The Trustees are responsible for: - Ensuring the charity keeps proper accounting records - Preparing an annual report and financial statements in accordance with the Charities Act 2011 - Safeguarding the assets of the charity - Ensuring the charity operates in accordance with its governing document The Trustees confirm that they have met these responsibilities throughout the year. ## **11. Timeline of Key Events (2021–2022)** - **Sept 2021:** Full reopening with enhanced Covid-19 safety measures - **Autumn 2021:** Manager begins long-term sickness leave; deputy manager assumes operational leadership - **Early 2022:** Intake increases to 30 children - **Spring 2022:** Local Authority confirms falling birth rates and long-term decline in demand - **Summer 2022:** All but 8 children are moving up to primary school - **Discussions with all parties conclude that as occupancy will drop to 22% in September 2022, dissolution is necessary** - **Late 2022:** Trustees formally resolve to dissolve the charity ## **12. Conclusion** This report reflects a year of significant challenge and change. The Trustees acted diligently, compassionately, and responsibly in reaching the decision to dissolve the charity, ensuring that all legal and ethical obligations were met. SPRINGHILL PRE SCHOOL UNAUDITED ACCOUNTS FOR THE PERIOD I SEPTEMBER 2021 TO 30 JUNE 2022 Morton Tax Springhill Pre School Contents of the Unaudited Accounts For the Period I September 2021 to 30 June 2022 Contents Paye 8u51ness DetsS15 Approval Aceauntanvs Report Proflr and Loss Account Balance Sheet Notes to the Accounts Springhill Pre School Business Details For the Period i September 2021 to 30 June 2022 Tradlng Mil￿eld Avenue East Cowes Jsle of Wight P032 6A5 Accountants Morton Ta 3 We5tfteld Roa St. Helens Ryde Isle Of Wight P033 luz Page I Springhill Pre School Accounts Approval Statement For the Period I September 2021 to 30 June 2022 I approve these un-8udlted accounts wh5ch cOMp￿Se a Profit and LO￿ Account. Balance Sheet and related notes. l acknowledge my responsibility for the accounts inclu¢Jing the provislon of all the infomation and e¥planaUons necessary for the cornpletion. Date Page 2 Springhill Pre School Accountant's Report For the Period I September 2021 to 30 June 2022 Jn accordance wlth the engagement letter dated , we have prepared the accounts. which tomprise the Prafit and Loss account. the Balance Sheet and the related notes, from the accounting records. inforniauon anij explanations provided to us. This report is made to you in accordante with the temis of otjr engagement. Our work has been undert4ken to enable u5 to prepare the accounts on your behalf and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume reskK)nsibilty to anyone other than to you, the dient. for our work or for this report. You have approved and acknowledged your re5ponslbility for these acC￿nts. We have not been instrurted fo complete an audit of the accounts. For this reason, we have not verified the accuraty or completeness of the aCcoUn￿ng retords. tnfomatyon or exptsnatsons you have provfded. Therefore we do not express any oplnion on the accounts. Signed Morton Tax 3 Westfield Road st, Flelens Ryde Isle Of Wlght P033 luz Pa9e 3 Springhill Pre School Profit and Loss Account For the Period I September 2021 to 30 June 2022 30 June 2022 31 August 2021 Turnover Fee5 Fundlnq Vouchers Xmas club & refunds Other trading income 10.450 34.748 1,072 1,873 210 11,617 48,557 258 1,605 ost of Sal• Materials Wage5 and salaA•s Premlses costs 48,3S3 62,037 503 44.958 3.124 2.142 60,598 4,282 48,58S 67,022 GROSS PROFIT {2321 {4,9851 other Income Bank interest recelv•ble 46 Èxpendlturé Subsi5tfjn¢e expenses Repalrs, renewals and rnaintenancè Accountancy fe•s Bank charges Bad debts w￿tten off other office costs Sundry expenses 12291 14,9391 527 782 125 692 653 125 97 471 9,802 603 7,166 9,28S 11.841 NET LOSS 19,5141 (16.7801 Page 4 Springhill Pre School Balance Sheet As at 30 June 2022 30 June 2022 31 August 2021 Notes CURRENT ASSETS Trade debtors Cash at bank ènd tn har 2,074 68.367 2.754 84.767 CURRENT LIABILMES Trade Creditors Accruals and deferred Income 70,441 87,521 125 7.692 126 7,692 NET CURRENT ASSErs 70,315 79,629 TOTAL ASSETS LESS CURRENT LIABILITIES 70,315 79.829 NET AsseTS 70,3L5 79,829 CAPITAL ACCOUNT Balance at I September 2021 ProllVILossl for the perfodlyear 79.829 19,5141 96.609 116,7801 Balance Carrled Porward 70,315 79,829 Page 5 Springhlll Pre School Notes to the Accounts For the Perlod I September 2021 to 30 June 2022 l. Acc¢untlng Pollty These unaudited accounts have been completed in accordance with UK GeneT3lly AC￿Pt￿ Actt)unUng Prathce gui(Jelines and proiqdes sufficient and rdevant information to enable cornplÈvon of a tsx return. Page 6 SPRINGHILL PRE SCHOOL UNAUDITED ACCOUNTS FOR THE PERIOD I SEPTEMBER 2021 TO 30 JUNE 2022 Morton Tax Springhill Pre School Contents of the Unaudited Accounts For the Period I September 2021 to 30 June 2022 Contents Paye 8u51ness DetsS15 Approval Aceauntanvs Report Proflr and Loss Account Balance Sheet Notes to the Accounts Springhill Pre School Business Details For the Period i September 2021 to 30 June 2022 Tradlng Mil￿eld Avenue East Cowes Jsle of Wight P032 6A5 Accountants Morton Ta 3 We5tfteld Roa St. Helens Ryde Isle Of Wight P033 luz Page I Springhill Pre School Accounts Approval Statement For the Period I September 2021 to 30 June 2022 I approve these un-8udlted accounts wh5ch cOMp￿Se a Profit and LO￿ Account. Balance Sheet and related notes. l acknowledge my responsibility for the accounts inclu¢Jing the provislon of all the infomation and e¥planaUons necessary for the cornpletion. Date Page 2 Springhill Pre School Accountant's Report For the Period I September 2021 to 30 June 2022 Jn accordance wlth the engagement letter dated , we have prepared the accounts. which tomprise the Prafit and Loss account. the Balance Sheet and the related notes, from the accounting records. inforniauon anij explanations provided to us. This report is made to you in accordante with the temis of otjr engagement. Our work has been undert4ken to enable u5 to prepare the accounts on your behalf and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume reskK)nsibilty to anyone other than to you, the dient. for our work or for this report. You have approved and acknowledged your re5ponslbility for these acC￿nts. We have not been instrurted fo complete an audit of the accounts. For this reason, we have not verified the accuraty or completeness of the aCcoUn￿ng retords. tnfomatyon or exptsnatsons you have provfded. Therefore we do not express any oplnion on the accounts. Signed Morton Tax 3 Westfield Road st, Flelens Ryde Isle Of Wlght P033 luz Pa9e 3 Springhill Pre School Profit and Loss Account For the Period I September 2021 to 30 June 2022 30 June 2022 31 August 2021 Turnover Fee5 Fundlnq Vouchers Xmas club & refunds Other trading income 10.450 34.748 1,072 1,873 210 11,617 48,557 258 1,605 ost of Sal• Materials Wage5 and salaA•s Premlses costs 48,3S3 62,037 503 44.958 3.124 2.142 60,598 4,282 48,58S 67,022 GROSS PROFIT {2321 {4,9851 other Income Bank interest recelv•ble 46 Èxpendlturé Subsi5tfjn¢e expenses Repalrs, renewals and rnaintenancè Accountancy fe•s Bank charges Bad debts w￿tten off other office costs Sundry expenses 12291 14,9391 527 782 125 692 653 125 97 471 9,802 603 7,166 9,28S 11.841 NET LOSS 19,5141 (16.7801 Page 4 Springhill Pre School Balance Sheet As at 30 June 2022 30 June 2022 31 August 2021 Notes CURRENT ASSETS Trade debtors Cash at bank ènd tn har 2,074 68.367 2.754 84.767 CURRENT LIABILMES Trade Creditors Accruals and deferred Income 70,441 87,521 125 7.692 126 7,692 NET CURRENT ASSErs 70,315 79,629 TOTAL ASSETS LESS CURRENT LIABILITIES 70,315 79.829 NET AsseTS 70,3L5 79,829 CAPITAL ACCOUNT Balance at I September 2021 ProllVILossl for the perfodlyear 79.829 19,5141 96.609 116,7801 Balance Carrled Porward 70,315 79,829 Page 5 Springhlll Pre School Notes to the Accounts For the Perlod I September 2021 to 30 June 2022 l. Acc¢untlng Pollty These unaudited accounts have been completed in accordance with UK GeneT3lly AC￿Pt￿ Actt)unUng Prathce gui(Jelines and proiqdes sufficient and rdevant information to enable cornplÈvon of a tsx return. Page 6