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2021-08-31-accounts

Company registration number: 06625633 Charity registration number: 1127348

Jigsaw Pre-School (Western Wards)

(A company limited by share capital)

Annual Report and Financial Statements

for the Year Ended 31 August 2021

Jigsaw Pre-School (Western Wards)

Contents

Trustees' Report 1 to 5 Independent Examiner's Report 6 Statement of Financial Activities 7 Balance Sheet 8 to 9 Notes to the Financial Statements 10 to 19

Jigsaw Pre-School (Western Wards)

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 August 2021.

Objectives and activities

Objects and aims

Provision of childcare and education to children aged 2 until entry to school, in the locks heath (western wards) area.

To maintain the provision of a high quality, safe and nurturing service to young children under our care.

Close attention is given to regular reviews of the curriculum to ensure the level and contents of education provided are appropriate and effective.

The staff members were encouraged to undertake training that would benefit them both personally and professionally.

Jigsaw Pre-School (Western Wards) are striving to achieve successful relationships with parents.

Public benefit

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on ‘public benefit: running a charity (PB2).

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

Over the last 12month period Jigsaw Pre-School (Western Wards) maintained its Good Ofsted Rating which is an achievement they are particularly proud of.

Jigsaw Pre-School (Western Wards) have set an objective to continue to maintain this rating in the coming year.

Page 1

Jigsaw Pre-School (Western Wards)

Trustees' Report

Financial review

Policy on reserves

Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergencies and other expenditures. The trustees consider that the ideal level of reserves that Jigsaw should aspire to is £77,000, being approximately 50% of annual expenditure.

The Board of Trustees has developed a reserves policy, it is multi layered and staged.

  1. Move the organisation to a position where it holds £60,000 free cash reserves. To allow the benefits of cash flow and economies of scale.

  2. Move the organisation to a position where it holds £70,000 free cash reserves.

  3. Move the organisation to a position where it holds £80,000 free cash reserves.

4 Move the organisation to a position where it holds £87,000 free cash reserves. The level needed to cover approximately 50% of annual expenditure.

At 31st August 2021 free reserves stood at £24,031.

Covid 19 has significantly affected all of Jigsaw Pre-school (Western Wards) private income. Invoiced hours and fees are low and fundraising has been difficult.

Jigsaw’s financial proposal for the future is to run on a termly basis, keeping an eye on the incoming government funding and invoiced additional hours and fees

Plans for future periods

Aims and key objectives for future periods

In the future Jigsaw Pre-School (Western Wards) plan the following:-

Going concern

The worldwide pandemic caused by Covid 19 and the subsequent lockdown has serious implications for the Charity. Funding from Local Government is currently continuing and the Trustees are ensuring that the Charity benefits from all support to which it is eligible. Given the continued support of Local Government the Trustees believe that the Charity is a going concern. However given the nature of the crisis the level of uncertainty for the future remains.

Structure, governance and management

Nature of governing document

The charity is controlled by its governing document, a Memorandum and Articles of Association, and constitutes a limited company, limited by guarantee as defined by the Companies Act 2006.

Advantage has been taken of Section 30 of the Companies Act 1985 exempting the company from the requirements to show Limited with its name.

As an Incorporated Charity, Jigsaw Pre -School’s governing constitutional document is its “Memorandum & Articles of Association”. These define the organisation’s charitable objects, composition of its Board of Trustees and the rules under which it is managed and operates.

Page 2

Jigsaw Pre-School (Western Wards)

Trustees' Report

Recruitment and appointment of trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law.

The composition of the Board of Trustees is outlined in the “Memorandum & Articles of Association”.

Trustees are appointed or their positions ratified at the Annual General Meeting, and are undertaken in accordance with the organisation’s governing constitutional document the “Memorandum & Articles of Association”.

Induction and training of trustees

Trustees are inducted by informal conversation with the Manager Sue Millar and any available Trustees at the time.

Organisational structure

The Charity is run by the Board of Trustees; it is they who take responsibility for the strategic planning and monitoring of the work of the Charity. The Manager Sue Millar and Chair of Trustees Jo Robinson work closely together to ensure the successful running of the Charity.

Relationships with related parties

Offsted – Preschool Inspector and Regulator Charity Commission – Charities Inspector and Regulator Childrens Services – Support for Child care providers

Major risks and management of those risks

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The major risks identified by the trustees all have relevant policies in place.

Page 3

Jigsaw Pre-School (Western Wards)

Trustees' Report

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees: Mrs J L Robinson Mrs J Bailey Mrs S H Millar Mrs K Collins-Hardman

Reference and Administrative Details

Registered Office: 26 Southampton Road Park Gate Southampton Hampshire SO31 6AF The charity is incorporated in Wales. Company Registration Number: 06625633 Charity Registration Number: 1127348 Bankers: Lloyds Bank PLc Ariel House 2138 Coventry Road Sheldon B26 3JW Independent Examiner Mitchell Meredith Limited Chartered Accountants St Davids House 48 Free Street Brecon Powys LD3 7BN

Page 4

Jigsaw Pre-School (Western Wards)

Trustees' Report

Financial instruments

Objectives and policies

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value.

Statement of Trustees' Responsibilities

Statement of Trustees Responsibilities

The trustees (who are also the directors of Jigsaw Pre-School (Western Wards) for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The annual report was approved by the trustees of the charity on 25 May 2022 and signed on its behalf by:

Mrs K Collins-Hardman Trustee

Page 5

Jigsaw Pre-School (Western Wards)

Independent Examiner's Report to the trustees of Jigsaw Pre-School (Western Wards) ("the Company")

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2021.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of Jigsaw Pre-School (Western Wards) 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 your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the 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:

  1. accounting records were not kept in respect of Jigsaw Pre-School (Western Wards) as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts 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 accounts 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 draw attention to note 2 to the financial statements which describes uncertainties arising as a result of the world pandemic caused by Covid 19 and the Charity's ability to continue as a going cencern. I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.

M L Barnes - FCCA ACA Mitchell Meredith Limited Chartered Accountants

St Davids House 48 Free Street Brecon Powys LD3 7BN

25 May 2022

Page 6

Jigsaw Pre-School (Western Wards)

Statement of Financial Activities for the Year Ended 31 August 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
5
Investment income
6
Total Income
Expenditure on:
Charitable activities
7
Total Expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
18
Unrestricted
£
10,340
130,202
2
140,544
(164,578)
(164,578)
(24,034)
(24,034)
49,349
25,315
Restricted
£
5,508
-
-
5,508
(5,667)
(5,667)
(159)
(159)
1,166
1,007
Total
2021
£
15,848
130,202
2
146,052
(170,245)
(170,245)
(24,193)
(24,193)
50,515
26,322
Total
2020
£
16,120
146,561
11
162,692
(147,008)
(147,008)
15,684
15,684
34,831
50,515

All of the charity's activities derive from continuing operations during the above two periods.

The notes on pages 10 to 19 form an integral part of these financial statements. Page 7

Jigsaw Pre-School (Western Wards)

(Registration number: 06625633) Balance Sheet as at 31 August 2021

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
15
Creditors: Amounts falling due within one year
16
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
18
Unrestricted income funds
Unrestricted funds
Total funds
18
2021
£
1,281
212
31,080
31,292
(6,251)
25,041
26,322
1,007
25,315
26,322
2020
£
1,132
3,080
51,725
54,805
(5,422)
49,383
50,515
1,166
49,349
50,515

The notes on pages 10 to 19 form an integral part of these financial statements. Page 8

Jigsaw Pre-School (Western Wards)

(Registration number: 06625633) Balance Sheet as at 31 August 2021

For the financial year ending 31 August 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements on pages 7 to 19 were approved by the trustees, and authorised for issue on 25 May 2022 and signed on their behalf by:

Mrs J L Robinson Trustee

The notes on pages 10 to 19 form an integral part of these financial statements. Page 9

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

1 Charity status

The charity is limited by share capital, incorporated in Wales.

The principal place of business is: Titchfield Community Centre Meon Room Mill Street Titchfield Fareham PO14 4AB

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Jigsaw Pre-School (Western Wards) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

The worldwide pandemic caused by Covid 19 and the subsequent lockdown has serious implications for the Charity. Funding from Local Government is currently continuing and the Trustees are ensuring that the Charity benefits from all support to which it is eligible. Given the continued support of Local Government the Trustees believe that the Charity is a going concern. However given the nature of the crisis the level of uncertainty for the future remains.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Page 10

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 11

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

Tangible fixed assets

Individual fixed assets costing £400.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Office equipment

Depreciation method and rate

20% straight line

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme. Contributions are charged in the statement of financial activities as they become payable in accordance with the rules of the scheme.

Page 12

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

3 Income from donations and legacies

Unrestricted
General
£
Grants (see note 4)
Government grants
10,340
Grants from other charities
-
10,340
4
Grants
Unrestricted
Funds
£
Job Retention Scheme
-
Fareham Borough Council
9,620
Tesco Bags of Help
-
Apprenticeship grant
500
Covid
220
10,340
5
Income from charitable activities
Hall
St Johns
Unrestricted
General
£
Grants (see note 4)
Government grants
10,340
Grants from other charities
-
10,340
4
Grants
Unrestricted
Funds
£
Job Retention Scheme
-
Fareham Borough Council
9,620
Tesco Bags of Help
-
Apprenticeship grant
500
Covid
220
10,340
5
Income from charitable activities
Hall
St Johns
Restricted
£
5,508
-
5,508
Restricted
Funds
£
5,508
-
-
-
5,508
Unrestricted
funds
£
72,844
57,358
130,202
Total
2021
£
15,848
-
15,848
Total Funds
2021
£
5,508
9,620
-
500
220
15,848
Total
2021
£
72,844
57,358
130,202
Total
2020
£
14,954
1,166
16,120
Total Funds
2020
£
9,954
5,000
1,166
-
-
16,120
Total
2020
£
75,417
71,144
10,340
146,561

Page 13

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

6 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits
7
Expenditure on charitable activities
Note
Unrestricted
funds
£
Direct costs - Hall
1,631
Direct costs - St
Johns
151
Staff costs
137,277
Allocated support
costs
8
23,635
Governance costs
8
1,884
164,578
Unrestricted
funds
General
£
2
Restricted
£
-
-
5,508
159
-
5,667
Total
2021
£
2
Total
2021
£
1,631
151
142,785
23,794
1,884
170,245
Total
2020
£
11
Total
2020
£
721
181
125,431
18,779
1,896
147,008

£165,079 (2020 - £137,054) of the above expenditure was attributable to unrestricted funds and £5,667 (2020 - £9,954) to restricted funds.

8 Analysis of governance and support costs

Governance costs

Independent examiner fees
Examination of the financial statements
Unrestricted
funds
General
£
1,884
1,884
Total
2021
£
1,884
1,884
Total
2020
£
1,896
1,896

Page 14

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

Analysis of support costs

Establishment costs
Office expenses
Printing postage and stationery
Sundry costs
Advertising
Payroll
Professional Fees
Insurance
Uniforms
Depreciation
Hall
£
5,839
217
53
960
-
-
-
-
-
-
7,069
St Johns
£
6,574
217
11
448
-
-
-
-
-
-
7,250
Overheads
£
660
2,495
1,587
766
322
1,000
405
1,550
299
391
9,475
Total
2021
£
13,073
2,929
1,651
2,174
322
1,000
405
1,550
299
391
23,794
Total
2020
£
9,296
2,470
1,061
2,550
240
966
110
1,690
113
283
18,779

9 Trustees remuneration and expenses

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

10 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Staff training
2021
£
135,599
3,104
2,280
1,802
142,785
2020
£
120,952
1,927
1,730
822
125,431

Page 15

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

2021 2020
No No
Employees 10 12

No employee received emoluments of more than £60,000 during the year.

The total employee benefits of the key management personnel of the charity were £44,747 (2020 - £32,860).

11 Independent examiner's remuneration

Examination of the financial statements 2021
£
1,884
2020
£
1,896

12 Taxation

The charity is a registered charity and is therefore exempt from taxation.

13 Tangible fixed assets

Cost
At 1 September 2020
Additions
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
Office
equipment
£
1,415
540
1,955
283
391
674
1,281
1,132
Total
£
1,415
540
1,955
283
391
674
1,281
1,132

Page 16

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

14 Debtors

Trade debtors
Prepayments
15 Cash and cash equivalents
Cash on hand
Cash at bank
16 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals
2021
£
138
74
212
2021
£
69
31,011
31,080
2021
£
1,911
1,018
513
2,809
6,251
2020
£
3,028
52
3,080
2020
£
118
51,607
51,725
2020
£
1,845
1,018
400
2,159
5,422

17 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £2,280 (2020 - £1,730).

Contributions totalling £(513) (2020 - £(400)) were payable to the scheme at the end of the year and are included in creditors.

Page 17

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

18 Funds
Unrestricted funds
General
General
Restricted funds
Job Retention Scheme
Tesco Bags of Help
Total restricted funds
Total funds
Unrestricted funds
General
General
Restricted
Job Retention Scheme
Tesco Bags of Help
Total restricted funds
Total funds
Balance at 1
September
2020
£
49,349
-
1,166
1,166
50,515
Balance at 1
September
2019
£
34,831
-
-
-
34,831
Incoming
resources
£
140,544
5,508
-
5,508
146,052
Incoming
resources
£
151,572
9,954
1,166
11,120
162,692
Resources
expended
£
(164,578)
(5,508)
(159)
(5,667)
(170,245)
Resources
expended
£
(137,054)
(9,954)
-
(9,954)
(147,008)
Balance at 31
August 2021
£
25,315
-
1,007
1,007
26,322
Balance at 31
August 2020
£
49,349
-
1,166
1,166
50,515

The specific purposes for which the funds are to be applied are as follows:

Job Retention Scheme - represents emergency Government funding to support unfunded staff costs during the Covid 19 crisis.

Tesco Bags of Help - represents funding received towrds the Ready, Steady ,,,, Grow! garden area in Titchfield

Page 18

Jigsaw Pre-School (Western Wards)

Notes to the Financial Statements for the Year Ended 31 August 2021

19 Analysis of net assets between funds

19 Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Unrestricted
funds
General
£
1,281
30,285
(6,251)
25,315
Restricted
funds
£
-
1,007
-
1,007
Total funds at
31 August
2021
£
1,281
31,292
(6,251)
26,322

20 Non-adjusting events after the financial period

The worldwide pandemic caused by Covid 19 and the subsequent lockdowns have had serious implications for the Charity. Funding from Local Government is currently continuing and the Trustees are ensuring that the Charity benefits from all support to which it is eligible. However given the nature of the crisis the level of uncertainty for the future remains.

Page 19