REGISTERED COMPANY NUMBER: 06256239 (England and Wales) REGISTERED CHARITY NUMBER: 1128799
Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 August 2020
for
The Hollies Pre-School Limited
Nolan James Ltd Chartered Accountants Suite 1 Armcon Business Park London Road South Poynton Stockport Cheshire SK12 1LQ
The Hollies Pre-School Limited
Contents of the Financial Statements for the Year Ended 31 August 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 2 |
| Independent Examiner's Report | 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 |
| Notes to the Financial Statements | 6 to 11 |
| Detailed Statement of Financial Activities | 12 to 13 |
The Hollies Pre-School Limited
Report of the Trustees
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of 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 ACTIVITIES
Objectives and aims
The Hollies Pre-School is established 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.
Public benefit
When planning activities for the year the Pre-School has considered the Commission's guidance on public benefit.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The pre-school holds an Outstanding Ofsted accreditation from 2020 demonstrating its continued commitment to provide a safe and happy environment where children can grow and learn under the guidance and supervision of dedicated and caring staff. The high quality and consistency of teaching benefits predominantly preschool age children from the local area and the pre-school also provides after school care for local children up to the age of 11.
The pre-school encourages children to learn about other cultures through its special link with a primary school in Uganda.
FINANCIAL REVIEW
Reserves policy
It is the policy of the charity to maintain unrestricted funds at a level to meet the unrestricted expenditure for the following twelve months. This would then provide sufficient funds to cover the management, administration and support costs. At the balance sheet date, the charity had unrestricted reserves carried forward of £257,607 (2019: £291,026).
The reserves not invested in tangible fixed assets are needed to meet the working capital requirements of the pre-school. As well as operational income, the charity also has an active fund raising committee which helps to boost the funds available to the charity to invest in its facilities and equipment. In December 2019, the new Rotunda building was officially opened and is a welcome addition to the space available to the children. In addition to this, fund raising events help replace books, toys, games and equipment.
Plans for Future Periods
The charity plans to continue the activities outlined above in the forthcoming years. The board of trustees continue to review and facilitate the necessary improvements and repairs required to the existing buildings and will plan future budgets accordingly.
In the long term funds will be required to deliver a further new building to replace the older facilities on the site. However, due to the recent investment, there is no imminent requirement for significant spend.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Recruitment and appointment of new trustees
The appointment of trustees is by the board and the requirement is for a minimum of 3 trustees.
Page 1
The Hollies Pre-School Limited
Report of the Trustees
STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure
The board of trustees have responsibility for all the major decisions of the charity. Beneath the board are three supervisors who take responsibility for the day to day running of the pre-school, two of which cover the pre-education side and one who covers the administrative duties. The staff are made up of both qualified and unqualified pre-school workers.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
06256239 (England and Wales)
Registered Charity number 1128799
Registered office
Hazel Badge Road Poynton Stockport Cheshire SK12 1HE
Trustees
A Gatenby (resigned 28.9.20) D A Felton Hr Consultant (appointed 2.7.20) S Horseman Internal Auditor J Kelly Policeman (resigned 8.7.20) E M Little Accountant M Morrison (appointed 28.9.20) R Whittaker (appointed 28.9.20) C Wright Hr Consultant (appointed 2.7.20) (resigned 30.9.20) K Wyart (appointed 28.9.20) S Carter Accountant
Company Secretary
S Horseman
Independent Examiner
Nolan James Ltd Chartered Accountants Suite 1 Armcon Business Park London Road South Poynton Stockport Cheshire SK12 1LQ
Approved by order of the board of trustees on 26 May 2021 and signed on its behalf by:
E M Little - Trustee
Page 2
Independent Examiner's Report to the Trustees of The Hollies Pre-School Limited
Independent examiner's report to the trustees of The Hollies Pre-School Limited ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2020.
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 the Company 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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
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
-
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 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 accounts to be reached.
Karen L Nolan FCCA Nolan James Ltd Chartered Accountants Suite 1 Armcon Business Park London Road South Poynton Stockport Cheshire SK12 1LQ
26 May 2021
Page 3
The Hollies Pre-School Limited
Statement of Financial Activities for the Year Ended 31 August 2020
| 31.8.20 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 1,872 Charitable activities Pre-school care & education 220,140 Other trading activities 2 2,649 Investment income 3 206 Other income 16,256 Total 241,123 EXPENDITURE ON Raising funds 761 Charitable activities Pre-school care & education 227,523 Other 46,258 Total 274,542 NET INCOME/(EXPENDITURE) (33,419) RECONCILIATION OF FUNDS Total funds brought forward 291,026 TOTAL FUNDS CARRIED FORWARD 257,607 |
31.8.19 Total funds £ 1,748 267,764 2,984 272 - 272,768 1,366 232,654 5,666 239,686 33,082 257,944 291,026 |
|---|---|
The notes form part of these financial statements
Page 4
The Hollies Pre-School Limited
Balance Sheet
31 August 2020
| 31.8.20 | 31.8.19 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| FIXED ASSETS | |||
| Tangible assets | 8 | 74,153 | 61,086 |
| CURRENT ASSETS | |||
| Debtors | 9 | 251 | 2,091 |
| Cash at bank and in hand | 214,722 | 261,609 | |
| 214,973 | 263,700 | ||
| CREDITORS | |||
| Amounts falling due within one year | 10 | (31,519) | (33,760) |
| NET CURRENT ASSETS | 183,454 | 229,940 | |
| TOTAL ASSETS LESS CURRENT | |||
| LIABILITIES | 257,607 | 291,026 | |
| NET ASSETS | 257,607 | 291,026 | |
| FUNDS | 11 | ||
| Unrestricted funds | 257,607 | 291,026 | |
| TOTAL FUNDS | 257,607 | 291,026 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 26 May 2021 and were signed on its behalf by:
E M Little - Trustee
The notes form part of these financial statements
Page 5
The Hollies Pre-School Limited
Notes to the Financial Statements for the Year Ended 31 August 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Governance costs
Governance costs include the costs of governance arrangements, which relate to the general running of the charity as opposed to the direct management functions.These activities provide the governance infrastructure, which allows the charity to operate, and to generate the information required for public accountability. Expenditure includes direct costs such as audit and legal advice and related support costs.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 10% on cost Plant and machinery - 25% on reducing balance Fixtures and fittings - 25% on reducing balance
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Page 6
continued...
The Hollies Pre-School Limited
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
1. ACCOUNTING POLICIES - continued
Government grants
Grants received under the Coronavirus Job Retention Scheme to reimburse a proportion of wages costs for certain employees who have been asked to temporarily stop work are recognised within other income when the grant proceeds are receivable.
2. OTHER TRADING ACTIVITIES
| OTHER TRADING ACTIVITIES | ||
|---|---|---|
| 31.8.20 | 31.8.19 | |
| £ | £ | |
| Fundraising events | 2,649 | 2,984 |
3.
INVESTMENT INCOME
| INVESTMENT INCOME | ||
|---|---|---|
| 31.8.20 | 31.8.19 | |
| £ | £ | |
| Deposit account interest | 206 | 272 |
4. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 31.8.20 | 31.8.19 | |
|---|---|---|
| £ | £ | |
| Depreciation - owned assets | 16,258 | 5,666 |
| Other operating leases | 8,000 | 8,000 |
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.
6. STAFF COSTS
The average monthly number of employees during the year was as follows:
Childcare Administration |
31.8.20 26 1 27 |
31.8.19 25 1 26 |
|---|---|---|
No employees received emoluments in excess of £60,000.
continued...
Page 7
The Hollies Pre-School Limited
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
| 7. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | |
|---|---|---|
| Unrestricted | ||
| fund | ||
| £ | ||
| INCOME AND ENDOWMENTS FROM | ||
| Donations and legacies | 1,748 | |
| Charitable activities | ||
| Pre-school care & education | 267,764 | |
| Other trading activities | 2,984 | |
| Investment income | 272 | |
| Total | 272,768 | |
| EXPENDITURE ON | ||
| Raising funds | 1,366 | |
| Charitable activities | ||
| Pre-school care & education | 232,654 | |
| Other | 5,666 | |
| Total | 239,686 | |
| NET INCOME | 33,082 | |
| RECONCILIATION OF FUNDS | ||
| Total funds brought forward | 257,944 | |
| TOTAL FUNDS CARRIED FORWARD | 291,026 |
continued...
Page 8
The Hollies Pre-School Limited
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
8. TANGIBLE FIXED ASSETS
| Short Plant and leasehold machinery £ £ COST At 1 September 2019 81,635 14,900 Additions 55,758 2,927 Impairments (30,000) - At 31 August 2020 107,393 17,827 DEPRECIATION At 1 September 2019 39,058 7,603 Charge for year 10,739 2,556 At 31 August 2020 49,797 10,159 NET BOOK VALUE At 31 August 2020 57,596 7,668 At 31 August 2019 42,577 7,297 9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Accrued expenses 11. MOVEMENT IN FUNDS At 1.9.19 £ Unrestricted funds General fund 291,026 TOTAL FUNDS 291,026 |
Fixtures and fittings £ 28,216 640 - 28,856 17,004 2,963 19,967 8,889 11,212 31.8.20 £ 251 31.8.20 £ 31,519 Net movement in funds £ (33,419) (33,419) |
Totals £ 124,751 59,325 (30,000) 154,076 63,665 16,258 79,923 74,153 61,086 31.8.19 £ 2,091 31.8.19 £ 33,760 At 31.8.20 £ 257,607 257,607 |
|---|---|---|
continued...
Page 9
The Hollies Pre-School Limited
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
11. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 241,123 241,123 |
Resources Movement expended in funds £ £ (274,542) (33,419) (274,542) (33,419) |
|---|---|---|
Comparatives for movement in funds
| At 1.9.18 £ Unrestricted funds General fund 257,944 TOTAL FUNDS 257,944 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 272,768 TOTAL FUNDS 272,768 |
Net movement At in funds 31.8.19 £ £ 33,082 291,026 33,082 291,026 Resources Movement expended in funds £ £ (239,686) 33,082 (239,686) 33,082 |
|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1.9.18 £ 257,944 257,944 |
Net movement in funds £ (337) (337) |
At 31.8.20 £ 257,607 257,607 |
|---|---|---|---|
continued...
Page 10
The Hollies Pre-School Limited
Notes to the Financial Statements - continued for the Year Ended 31 August 2020
11. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 513,891 513,891 |
Resources Movement expended in funds £ £ (514,228) (337) (514,228) (337) |
|---|---|---|
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 August 2020.
13. AMOUNTS PAID TO INDEPENDENT EXAMINER
During the period payments were made to the independent examiner of £1,800 (2019:£750) for the independent examination of accounts and £4,504 (2019 : £3,126) for payroll & Coronavirus Job Retention Scheme Grant claims.
Page 11
| The Hollies Pre-School Limited | |||
|---|---|---|---|
| Detailed Statement of Financial Activities | |||
| 31.8.20 | 31.8.19 | ||
| £ | £ | ||
| INCOME AND ENDOWMENTS | |||
| Donations and legacies | |||
| Donations | 1,872 | 1,748 | |
| Other trading activities | |||
| Fundraising events | 2,649 | 2,984 | |
| Investment income | |||
| Deposit account interest | 206 | 272 | |
| Charitable activities | |||
| Admission fees | 131,199 | 189,401 | |
| Support funding | 88,941 | 78,363 | |
| 220,140 | 267,764 | ||
| Other income | |||
| Job retention scheme grant | 16,256 | - | |
| Total incoming resources | 241,123 | 272,768 | |
| EXPENDITURE | |||
| Other trading activities | |||
| Fundraising events | 761 | 1,366 | |
| Charitable activities | |||
| Wages - Childcare | 166,965 | 154,202 | |
| Social security | 2,358 | 17,310 | |
| Pensions | 1,352 | 1,310 | |
| Insurance | 3,886 | 2,853 | |
| Light and heat | 1,631 | 1,557 | |
| Telephone | 2,511 | 2,123 | |
| Postage and stationery | 427 | 749 | |
| Advertising | 10 | - | |
| Sundries | 750 | 648 | |
| Books, equipment & materials | 1,806 | 3,602 | |
| Repairs & maintenance | 8,750 | 10,275 | |
| School dinners | 5,546 | 8,488 | |
| Milk | 818 | 1,203 | |
| Travel expenses | 336 | 849 | |
| Staff uniforms | 231 | 735 | |
| Staff training & courses | 1,750 | 2,177 | |
| Specialist Teaching | 668 | 835 | |
| 199,795 | 208,916 | ||
| Other | |||
| Depreciation of tangible fixed assets | 16,258 | 5,666 | |
| Carried forward | 16,258 | 5,666 |
This page does not form part of the statutory financial statements
Page 12
The Hollies Pre-School Limited
| Detailed Statement of Financial Activities | ||
|---|---|---|
| 31.8.20 | 31.8.19 | |
| £ | £ | |
| Other | ||
| Brought forward | 16,258 | 5,666 |
| Impairment losses for tangible fixed assets | 30,000 | - |
| 46,258 | 5,666 | |
| Support costs | ||
| Management | ||
| Wages | 11,490 | 10,721 |
| Other operating leases | 8,000 | 8,000 |
| 19,490 | 18,721 | |
| Governance costs | ||
| Accountancy and legal fees | 1,800 | 750 |
| Accountancy - Payroll costs | 4,505 | 3,102 |
| HR Consultancy fees | 180 | - |
| Recruitment fees | 1,209 | 556 |
| Affiliation fees & licences | 544 | 609 |
| 8,238 | 5,017 | |
| Total resources expended | 274,542 | 239,686 |
| Net (expenditure)/income | (33,419) | 33,082 |
This page does not form part of the statutory financial statements
Page 13