Charity Registration Number: 1135312 Company Registration Number: 07178036 ST MAWGAN PRE-SCHOOL LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 AUGUST 2021 |ST MAWGAN PRE-SCHOOL LIMITED|| |---|---| |Contents of the Financial Statements|| |For the Year Ending 31 August 2021|| ||Page| |Company Information|2| |Report of the Trustees|3-5| |Independent Examiners Report|6| |Statement of Financial Activities|7| |Balance Sheet|8| |Notes to the Financial Statements|9-15| 1 ST MAWGAN PRE-SCHOOL LIMITED COMPANY INFORMATION FOR THE YEAR ENDED 31 AUGUST 2021 Directors: Mrs K Backway Mrs S B Elias Mrs S Mundy Ms B Szabo Mrs H Raby Secretary: Mrs.B Szabo Registered Office: Mor Workspace Treloggan Lane Newquay TR7 2FP Company Registered Number: 07178036 Registered Charity Number: 1135312 Accountants: Linggard and Thomas Ltd Mor Workspace Treloggan Lane Newquay TR7 2FP 2 ST MAWGAN PRE-SCHOOL LIMITED ## REPORT OF THE TRUSTEES FOR THE YEAR ENDING 31 AUGUST 2021 The Directors present their report with the Financial Statements for the year ending 31 August 2021. ## **STATUS AND ADMINISTRATION** The Charity is a company limited by guarantee and a registered charity with the Charity Commission. It was incorporated on 4 March 2010. The accounts comply with current statutory requirements and the charity’s governing documents, Memorandum and Articles of Association and the Statement of Recommended Practice (SORP 2005). ## **AIM AND PURPOSE** St Mawgan Pre-School Limited has the responsibility of running a pre-school for the benefit of the local community. ## **OBJECTIVES AND ACTIVITIES** St Mawgan Pre-School Limited is committed 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 and by: - Offering appropriate play, education and care facilities, family learning and extended hours groups, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability. - Encourage the study of the needs of such children and their families and promoting public interest in and recognition of such needs in the local areas. - Instigating and adhering to and furthering the aims and objects of the Pre-School Learning Alliance. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** St Mawgan Pre-School Limited is governed by its Trustee Board which is responsible for setting the strategic direction of the company and the policy of the charity. The Trustees carry the ultimate responsibility for the conduct of St Mawgan Pre School Limited and for ensuring that the charity satisfies its legal and contractual obligations. Trustees meet on a regular basis. - The Trustees (directors) during the period under review were: Mrs K Backway (6 October 2020 to present) Mrs S B Elias (28 January 2021 to present) Mrs D Carden (9 April 2021 to 9 September 2021) Mrs C L Grosvenor (18 October 2018 to 19 July 2021) Mrs L J Howes (28 January 2021 to 9 September 2021) Mrs E E Lester (30 October 2017 to 9 September 2021) Mrs S Mundy (25 July 2020 to present) Mr D I Phillips (19 April 2014 to 6 October 2020) Ms B Szabo (25 July 2020 to present) Mrs H Raby (9 September 2021 to present) The directors are appointed according to the Articles of Association and are referred to in that document as the Board of Trustees 3 ST MAWGAN PRE-SCHOOL LIMITED ## REPORT OF THE TRUSTEES FOR THE YEAR ENDING 31 AUGUST 2021 (CONTINUED) ## **REVIEW OF FINANCIAL ACTIVITIES** The financial results for the year are set out in the Statement of Financial Activities on page 7 and the position at the end of the year is shown in the Balance Sheet on page 8. St Mawgan Pre-School Limited own computer equipment which are disclosed as tangible fixed assets in the financial statements. The pre-school meet in the village Community Hall, where it has use of a large hall and associated facilities and pays a rent to the organization that operate the hall. The pre-school employed five members of staff, all of whom have appropriate early years qualifications at the accounting year end. Incoming resources in the period were £51,131. A surplus of £1,092 was made in the year. At 31 August 2021 total reserves were £4,503, all of which represented funds introduced by the members on the incorporation of the pre-school on 4 March 2010. To assess the performance up to 31 August 2021, the following SWOT has been prepared:- ## **Strengths** There are well qualified, highly motivated staff. Good Ofsted inspection in the past few years. Substantial unrestricted funds are held by the company. Considerable waiting list of children. ## **Weaknesses** Children numbers are limited due to the premises. The premises are not designed specifically to be used as a pre school. Varying levels of support and engagement from parents of enrolled children. Decreased enrolment and staffing challenges during the COVID-19 pandemic. ## **Opportunities** To raise the profile of the pre school in order to attract more parents to support the pre school. ## **Threats** Fundraising from all sources will be more difficult in the present economic climate. Reputation risks (for example an accident involving injury to children or failure to meet service commitments). The opportunity to raise prices is constrained by what local parents will find affordable. Covid-19 pandemic and the operating restrictions being placed on the pre-school. Summary of SWOT findings The pre-school is an established service within the district and informal feedback indicates that it is highly valued by the users. Reputation risks can be diminished by ensuring that constant training remains a high priority. 4 ST MAWGAN PRE-SCHOOL LIMITED ## REPORT OF THE TRUSTEES FOR THE YEAR ENDING 31 AUGUST 2021 (CONTINUED) ## **RESERVES POLICY** All funds at the moment are unrestricted to allow the pre-school to have sufficient funds at its disposal to meet the daily running expenses, as income is dependent on the number of children in the region who will be attending the pre-school. Implementing a plan for raising funds for day to day running of the pre-school is therefore a priority, but the long-term aim is to obtain funding by whatever means are available for the company to own its own premises. ## **DIRECTORS’ RESPONSIBILITIES** Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the charitable company’s state of affairs at the end of the year and of its income and expenditure for that year. In preparing those accounts, the trustees are required to: - a) select suitable accounting policies and then apply them consistently; - b) make judgments and estimates that are reasonable and prudent; - c) state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - d) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in operation. The trustees are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for ensuring that the company maintains an adequate system of internal control designed to provide reasonable assurance that assets are safeguarded against material loss or unauthorized use and to prevent and detect fraud and other irregularities. This report has been prepared in accordance with the special provisions of the Companies Act 2006 applicable to companies subject to the small companies’ regime and follows the recommendations in Accounting and Reporting by Charities (FRS 102). Signed on behalf of the trustees Mrs Helen Raby Dated : 16 May 2022 5 ## INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES ON THE ## UNAUDITED ACCOUNTS OF ST MAWGAN PRE-SCHOOL LIMITED I report on the accounts of the company for the year ended 31 August 2021 set out on pages 7 to 13. ## **Respective responsibilities of trustees and examiner** The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this period under section 144 (2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Having satisfied myself that the charity is not subject to an audit under Part 16 of the Company Act 2006 and is eligible for an independent examination, it is my responsibility to: - examine the accounts under section 145 of the 2011 Act; - to follow the procedures laid down in the General Directions given by the Charity Commission under section 145 (5) (b) of the 2011 Act; and - to state whether particular matters have come to my attention. ## **Basis of independent examiners’ report** My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently, no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below. ## **Independent examiners’ statement** In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that, in any material respect, the requirements: - a) to keep accounting records in accordance with s386 of the Companies Act 2006; and - b) to prepare accounts which accord with the accounting records, comply with the accounting requirements of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice (FRS 102) have not been met ; or to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Linggard and Thomas Mor Workspace Treloggan Lane Newquay TR7 2FP Date: 16 May 2022 6 ## ST MAWGAN PRE-SCHOOL LIMITED ## STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021 |Notes
**Incoming Resources**
Incoming resources from generated
funds
_Voluntary income_
Funding
2
_Activities for generating funds:_
_Investment income:_
Interest Receivable
**Incoming resources from charitable**
**activities**
Fees received and other income
3
**Total Incoming Resources**
**Resources Expended**
**Costs of generating funds**
_Costs of generating voluntary income_
4
**Charitable activities**
5
**Governance costs**
6
**Total Resources Expended**
**Net Incoming / (Outgoing)resources for**
**the year**
**Net movement in funds**
**Transfers between funds**
Re**conciliation of Funds**
Total funds brought forward
Total funds carried forward|Unrestricted
Funds 2021
£
31,035
20,096
51,131
3,596
45,498
945
50,039
**1,092**
1,092
-
(15,645)
(14,553)|Restricted
Funds 2021
£
-
-
-
-
-
-
-
-
**-**
-
-
-
-|Total Funds
2021
£
31,035
20,096
51,131
3,596
45,498
945
50,039
**1,092**
1,092
-
(15,645)
(14,553)|Total Funds
2020
RESTATED
£
39,371
-
23,163| |---|---|---|---|---| |||||62,534| |||||4,042
61,298
597| |||||65,937| |||||**(3,403)**
(3,403)
-| |||||(12,242)
(15,645)| The statement of financial activities includes all gains and losses in the period. All incoming resources and resources expended derive from continuing activities. These financial statements do not incorporate the significant value attributed to volunteers’ hours and other intangible incoming resources that contributed to the activities of the organization. 7 ## ST MAWGAN PRE-SCHOOL LIMITED ## BALANCE SHEET AT 31 AUGUST 2021 |Notes
**FIXED ASSETS**
Tangible Assets
9
**CURRENT ASSETS**
Stock
Debtors & Prepayments
10
Cash at Bank and in hand
**CURRENT LIABILITIES: Amounts falling**
**due within one year**
11
**NET CURRENT ASSETS**
**NON CURRENT LIABILITIES: Amounts**
**falling due after one year**
**TOTAL NET ASSETS**
**REPRESENTED BY**
Unrestricted Fund
12
Accumulated Fund
Designated Funds|2021
£
£
223
133
1,059
8,835
10,027
(747)
9,280
(5,000)
**4,503**
4,503
-
4,503
**4,503**|2020
RESTATED
£
£
298
196
523
8,271
8,990
(877)
8,113
(5,000)
**3,411**
3,411
-
3,411
**3,411**|2020
RESTATED
£
£
298
196
523
8,271
8,990
(877)
8,113
(5,000)
**3,411**
3,411
-
3,411
**3,411**| |---|---|---|---| ||||**3,411**| ||||3,411| ||||**3,411**| The trustees are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that members have not required the company to obtain an audit in accordance with section 476 of the Act. The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of the accounts. The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies’ regime and in accordance with FRS 102 SORP. The notes form part of these Financial Statements Signatory: Mrs Helen Raby Approved by the Board on 16 May 2022 8 ST MAWGAN PRE-SCHOOL LIMITED Notes to the Financial Statements for the Year Ended 31 August 2021 ## **1. ACCOUNTING POLICIES** ## **a) General** The Financial Statements have been prepared under the historical cost convention and follow the recommendations in Accounting and Reporting by Charities: Statement of Recommended Practice (FRS 102). ## **b) Incoming Resources** Voluntary income is recognized as incoming resources when receivable, except in so far as they are incapable of financial measurement. When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods. Incoming resources are recognized in the financial statements when the effect of a transaction or other event results in an increase in the Charity’s assets. Dependent upon: ## 1. The Charity’s entitlement to the income 2. When it is virtually certain that the income resource will be received 3. When the monetary value of the income can be measured with sufficient reliability ## **c) Resources Expended** Resources expended are recognized in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered. Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned on an appropriate basis. - 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. - Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity. ## **d) Tangible Fixed Assets & Depreciation** Tangible fixed assets are valued at historic cost less any transaction costs. No revaluations are required as all assets have a short life. No de minimis value has been set and assets have been reviewed for impairments by the trustees. Depreciation is provided at the following annual rates in order to write off each asset over it’s estimated useful life:- Computer equipment — Straight line over 3 years Equipment — 25% reducing balance basis 9 ## ST MAWGAN PRE-SCHOOL LIMITED ## Notes to the Financial Statements for the Year Ended 31 August 2021 ## **e) Realized and unrealized gains and losses** All gains and losses are taken to the Statement of Financial Activities as they arise. Realized gains and losses on asset disposals are calculated as the difference between sales proceeds and the net book value recorded in the accounts. ## **f) Unrestricted Funds** Unrestricted funds are grants and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds. ## **g) Designated Funds** Designated funds are unrestricted funds earmarked by the Trustees for particular purposes. The use of such funds is at the Trustees’ discretion. ## **h) Restricted Funds** Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of support costs. ## **2. FUNDING** |Cornwall Council|Unrestricted
Funds 2021
£
31,035
31,035|Restricted
Funds 2021
£
-
-|Total Funds
2021
£
31,035
31,035|Total Funds
2020
£
39,371| |---|---|---|---|---| |||||39,371| 10 ## ST MAWGAN PRE-SCHOOL LIMITED Notes to the Financial Statements for the Year Ended 31 August 2021 ## 3. **INCOMING RESOURCES FROM CHARITABLE ACTIVITIES** |Fees
Income from fundraising activities
Other income
Donations
Grants|Unrestricted
Funds 2021
£
14,761
520
50
2,308
2,457
20,096|Restricted
Funds 2021
£
-
-
-
-
-
-|Total Funds
2021
£
14,761
520
50
2,308
2,457
20,096|Total Funds
2020
RESTATED
£
8,019
150
50
5,750
9,194| |---|---|---|---|---| |||||23,163| ## **4. COSTS OF GENERATING VOLUNTARY INCOME** |Insurance
Rent|Unrestricted
Funds 2021
£
849
2,747
3,596|Restricted
Funds 2021
£
-
-
-|Total Funds
2021
£
849
2,747
3,596|Total Funds
2020
£
423
3,619| |---|---|---|---|---| |||||4,042| 11 ## ST MAWGAN PRE-SCHOOL LIMITED ## Notes to the Financial Statements for the Year Ended 31 August 2021 ## **5. CHARITABLE ACTIYITIES** |Wages
Books, play equipment, etc
Refreshments
Cleaning expenses
Pension contributions
Expenses for fund raising events
Uniforms
Training expenses
Stationery
Membership & licenses
Sundry expenses
Repairs & renewals
Depreciation
Excursions|Unrestricted
Funds 2021
£
40,339
181
1,026
-
1,217
-
123
1,499
277
580
181
-
75
-
45,498|Restricted
Funds 2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|Total Funds
2021
£
40,339
181
1,026
-
1,217
-
123
1,499
277
580
181
-
75
-
45,498|Total Funds
2020
£
51,313
2,492
750
157
1,325
-
280
1,606
53
407
103
13
99
2,700| |---|---|---|---|---| |||||61,298| ## **6. GOVERNANCE COSTS** |Accountancy fees
Payroll bureau fees|Unrestricted
Funds 2021
£
296
649
945|Restricted
Funds 2021
£
-
-
-|Total Funds
2021
£
296
649
945|Total Funds
2020
£
120
477| |---|---|---|---|---| |||||597| 12 ## ST MAWGAN PRE-SCHOOL LIMITED ## Notes to the Financial Statements for the Year Ended 31 August 2021 ## **7. TRUSTEES** None of the trustees (or any persons connected with them) received any remuneration or reimbursement of out- of-pocket expenses during the period. ## **8. TAXATION** The charitable company is exempt from Corporation Tax on its charitable activities. ## **9. TANGIBLE FIXED ASSETS** |Cost as at 1 September 2020
Additions
Disposals
Cost as at 31 August 2021
Depreciation as at 1 September 2020
Depreciation charge for the year
Depreciation on disposals
Depreciation as at 31 August 2021
Net Book Value as at 31 August 2020
Net Book Value as at 31 August
2021|Equipment
£
1,736
-
-
1,736
1,438
75
-
1,513
298
223|Computer
Equipment
£
2,788
-
-
2,788
2,788
-
-
2,788
-
-|Total
£
4,524
-
-| |---|---|---|---| ||||4,524| ||||4,226
75
-| ||||4,301| ||||298| ||||223| 13 ## ST MAWGAN PRE-SCHOOL LIMITED Notes to the Financial Statements for the Year Ended 31 August 2021 ## **10. DEBTORS** |Trade Debtors|2021
1,059
1,059|2020
523| |---|---|---| |||523| ## **11. CREDITORS** |Trade creditors
Social security and other taxes|2021
270
477
747|2020
330
547| |---|---|---| |||877| ## **12. UNRESTRICTED FUNDS** |Funds
introduced by
members on
incorporation
General funds|Balance at
1
September
2020
RESTATED
£
19,056
(15,645)
3,411|Incoming
resources
£
-
51,131
51,131|Movement
in funds
expenditure
£
-
(50,039)
(50,039)|Transfers
£
-
-
-|Balance
at 31
August
2021
£
19,056
(14,553)| |---|---|---|---|---|---| ||||||4,503| 14 ## ST MAWGAN PRE-SCHOOL LIMITED Notes to the Financial Statements for the Year Ended 31 August 2021 ## **13. ANALYSIS OF NET ASSETS BETWEEN FUNDS** |Net current assets
Total net assets|Restricted
Funds
£
-
-|Unrestricted
Funds
£
4,503
4,503|Designated
Funds
£
-|2020
Total
Funds
£
4,503
4,503|2019 Total
Funds
RESTATED
£
3,411| |---|---|---|---|---|---| ||||||3,411| ## **14. GUARANTEE** The company is limited by guarantee. Each member has guaranteed the sum of £1 on winding up. ## **15. GOING CONCERN** The COVID-19 Pandemic caused the Preschool to be closed during a period of lockdown, however since the restrictions have eased the Preschool has remained open. The trustees therefore consider the pre-school can and will continue to operate for the for seeable future and the going concern basis is appropriate. ## **16. PRIOR PERIOD ERRORS** The comparative figures for 2020 have been restated, due to a loan of £5,000 being incorrectly recognised as donation income. This has now been corrected, and the reserves as at 1 September 2020 have reduced by £5,000. 15