## **CHUDLEIGH KNIGHTON PRE SCHOOL LIMITED**
**Directors' report and Financial Statements Year ended 31 August 2020**
**Registered Charity number: 1135623 Registered Company number: 07162177**
Bankers Natwest Bank 48 Courtenay Street Newton Abbot
## **Contents**
|**Contents**||
|---|---|
||**Page**|
|Directors' report|3 - 4|
|Statement of directors' responsibilities in respect of the Directors' Report and the financial
statements|5|
|Independent Examiner's Report|6|
|Statement of Financial Activities for the year ended 31 August 2020|7|
|Balance Sheet as at 31 August 2020|8|
|Statement of Cash Flows for the year ended 31 August 2020|9|
|Notes to the Accounts|10 - 12|
## **Directors' report**
The directors present their directors' report and financial statements for the year ended 31 August 2020.
## **Principal objects and activities**
The objects of the Charity are set out in the articles of association. In summary, the Charity provides pre-School education facilities to children from the age of 2 —4 years. The objects of the Charity include enhancing the development and education of children primarily under statutory school age. The Charity provides these facilities 5 days a week.
The Charity offers play, education and care facilities and works closely with the local community and other education facilities, such as Chudleigh Knighton Church of England Primary School, to promote the needs and education of pre-school children for the public benefit.
## **Structure, Governance and management**
The Charity was incorporated as a company limited by guarantee on 18 February 2010 and registered with the Charity Commission on 21 April 2010. The Charity began operating on 7 October 2010 following a transfer from an existing Pre-School charity (Charity Number — 1022361).
## **Directors**
The directors who held office during the year were as follows; Mrs Victoria Andrews Mrs Sally Lacey Mrs Joanne Viney
The minimum number of Directors is 3 but there is no maximum.
The Directors are also members of the Charity. The Directors meet regularly during the year and invite parents, carers and other interested members of the community to attend committee meetings to involve parents and carers in the running of the Charity.
Whilst corporate decisions are made by the Directors, the day to day running of the Charity is carried out by the Managers and Deputy Manager.
## **Employees**
The Charity considers that the employees are the Pre-School's greatest asset, and that the low turnover of employees is due to high levels of job satisfaction. During the year the Charity had 9 part time staff, including a Manager, Deputy Manager and Office manager.
The Charity is an equal opportunities employer and does not discriminate on the grounds of sex, race, disability or religious affiliation (if any).
Page 3 of 12
## **Directors' report continued**
## **Business review**
The Charity has had 10 full years of operating from in its premises at 'Pauline's Place'.
The Charity has a long standing excellent reputation, drawing children from neighbouring towns & villages. In 2018 the Pre-school achieved another "Good" Ofsted rating. Until the lockdown measures were put in place the pre-school had 34 children on the roll and was expecting to run almost at capacity during the normally busy Summer term.
The children comprise both funded and non-funded two to four-year olds. The pre-school reopened in June in line with national guidelines for early years education and was able to offer places to all children who needed it. After a busy Spring term the Summer numbers were understandably lower than usual with many families choosing to keep their children at home until September. As last year more families also took up the offer of 30 hours funding in Autumn & Spring (Pre-lockdown).This is reflected in the large reduction in parents fees recieved this financial year.
The performance of the Charity is set out in the accounts.
The Charity recorded a deficit for the year which can be attributed to the effects of the Coronavirus pandemic. Despite this, Directors consider that the Charity remains a viable organisation that will continue to provide high quality pre-school facilities to the locality.
It is the policy of the Charity to retain a minimum of £25,000 in designated reserves, which is expendable, to deal with items of unusual expenditure such as redundancy payments (should they be relevant) and repairs to the building. At the year end the Charity held £45446 in reserves (approximately £25,407 of which is held in a separate designated funds account).
After making enquiries, the directors have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they consider it appropriate to adopt the going concern basis in preparing the accounts.
## **Public Benefit test**
In summary, the Charity offers Pre-School educational and play facilities to children primarily under statutory school age. This benefits the community by providing Early Years care for children living in or around Chudleigh Knighton, and supporting and encouraging parents and carers in the development and education of pre-school children. The Charity works closely with the local primary school, the church and the village hall, ensuring strong links are maintained within the community.
The Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.
## **Political and charitable contributions**
The Charity made no political or charitable donations or incurred any political expenditure during the year.
By order of the Board
Sally Lacey Director 07-Oct-20
Registered office Pauline's Place Chudleigh Knighton Devon TQ13 0EY
Page 4 of 12
## **Statement of directors' responsibilities in respect of the Directors' Report and the financial statements**
The trustees (who are also directors of Chudleigh Knighton Pre School Limited for the purposes of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable for that period. ln preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that 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.
Page 5 of 12
## **Independent Examination Report**
## **Independent examiner’s report to Chudleigh Knighton Pre School Limited**
I report on the accounts of Chudleigh Knighton Pre School Limited for the year ended 31 August 2020, which are set out on pages 7 to 12 is in respect of an examination carried out in accordance with Section 145 of the Charities Act 2011.
## **Respective responsibilities of Chudleigh Knighton Pre School Limited and the examiner**
Chudleigh Knighton Pre School Limited members are responsible for the preparation of the accounts. The Chudleigh Knighton Pre School Limited members consider that an audit is not required for this year under section 144(2) of the Charities Act (the 2011 Act) and that an independent examination is needed.
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
- commission under section 145(5) of the 2011 Act
- to state whether particular matters have come to my attention
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by Chudleigh Knighton Pre School Limited and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as members of Chudleigh Knighton Pre School Limited 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 next statement.
## **Independent examiner’s statement**
In connection with my examination, nothing has come to my attention:
- (1) which gives me reasonable cause to believe that any material respect of the requirements:
- to keep accounting records in accordance with section 130 of the 2011 Act and
- to prepare accounts which accord with the accounting records and comply with
- the accounting requirements of the 2011 Act
have not been met or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached
David Cook FCCA Smarter Accounting 5 Den Road Teignmouth Devon TQ14 8AR
Date: 9 February 2021
Page 6 of 12
## **Chudleigh Knighton Pre School Limited - Annual Accounts 2019/20**
## **Statement of Financial Activities for the year ended 31 August 2020**
|Notes
**Income and endowments from:**
Donations
Income from Investments
**9**
Income from Charitable activities
**2**
**Total income**
**Expenditure on:**
Charitable activities:
**3**
**Total resources expended**
**Net income/(expenditure)**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
**11**|Designated
Unrestricted
**Total Funds**
funds
funds
**2020**
£
£
£
125
125
40
40
68,576
68,576|Designated
funds
£
-
49
-|Unrestricted
funds
£
111
87,554
87,665
76,306
76,306
11,359
8,896
-
**2,463**
21,404
**23,867**|**Total funds**
**2019**
£
**111**
**49**
**87,554**|
|---|---|---|---|---|
||**40**
**68,701**
**68,741**|49||**87,714**|
||72,211
72,211
72,211
**72,211**
**40**
**3,510**
**-**
**3,470**
**-**
-
-
-
**40**
**3,510**
**-**
**3,470**
**-**
25,049
23,867
48,916
**25,089**
**20,357**
**45,446**|-
-
49
8,896
**8,945**
16,104
**25,049**||**76,306**|
|||||**76,306**|
||||||
|||||**11,408**
**-**|
|||||**11,408**|
|||||**37,508**|
|||||**48,916**|
The company has no recognised gains and losses other than the deficit for the year.
All of the activities derive from continuing operations.
The notes on pages 8 to 11 form part of these accounts.
Page 7 of 12
## **Chudleigh Knighton Pre School Limited - Annual Accounts 2019/20**
## **Balance Sheet as at 31 August 2020**
Notes
|**Fixed assets**
Property, plant and equipment
**4**
**Total fixed assets**
**Current assets**
Debtors
**5**
Cash at bank and in hand
**Total current assets**
**Liabilities:**
Creditors: amounts falling due within one year
**6**
**Net current assets**
**Total net assets**
**The funds of the Charity**
Designated funds:
**11**
Unrestricted funds
**11**
**Total Charity funds**|Designated
funds
£
-
-
-
25,089
25,089
-
25,089
**25,089**
25,089
-
**25,089**|Unrestricted
funds
£
1,270
1,270
-
19,211
19,211
124
19,087
**20,357**
-
20,357
**20,357**|**Total**
Total
**funds**
Funds
**2020**
2019
**£**
£
**1,270**
1,577
**1,270**
1,577
**-**
416
**44,300**
46,980
**44,300**
47,396
**124**
57
**44,176**
47,339
**45,446**
48,916
**25,089**
25,049
**20,357**
23,867
**45,446**
48,916|
|---|---|---|---|
The notes on pages 8 to 11 form part of these financial statements.
For the year ended 31 August 2020, the company was entitled to exemption under section 477 of the companies act 2006 relating to small companies.
No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibility for complying with the requirements of the act with respect to the accounting records and the preparation of the accounts.
These financial statements were approved by the board of directors on 7th October 2020 and were signed on its behalf by:
Sally Lacey Director 07-Oct-20
Page 8 of 12
## **Chudleigh Knighton Pre School Limited - Annual Accounts 2019/20**
## **Statement of Cash Flows for the year ended 31 August 2020**
|**Cash flows from operating activities:**
**Net cash (used in) / provided by operating**
**activities**
**Cash flows from investing activities:**
Interest on cash in bank
Purchase of property, plant and equipment
**Net cash provided by investing activities**
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
**Cash and cash equivalents at the end of the**
**reporting period**|Designated
funds
£
-
40
-
40
**40**
25,049
**25,089**|Unrestricted
funds
£
(2,519)
-
(201)
(201)
**(2,720)**
21,931
**19,211**|**Total** Total
**funds**
funds
**2020**
2019
**£**
£
(2,519)
12,287
**40**
49
**(201)**
(1,284)
**(161)**
(1,235)
**(2,680)**
**11,052**
**46,980**
35,928
**44,300**
**46,980**|
|---|---|---|---|
## **Reconciliation of net income / (expenditure) to net cash flow from operating activities**
|**Net income / (expenditure) for the reporting**
**period (as per the statement of financial**
**activities)**
**Adjustments for:**
Depreciation charges
Interest on cash in bank
(Increase) / decrease in debtors
(Decrease) / increase in creditors
(Decrease) / increase in provisions
**Net cash (used in) / provided by operating**
**activities**|Designated
funds
£
40
-
(40)
-
-
-
-|Unrestricted
funds
£
(3,510)
508
-
416
67
(2,519)|**Total** Total
**funds**
funds
**2020**
2019
**£**
£
**(3,470)**
11,408
**508**
468
**(40)**
(49)
**416**
403
**67**
57
**-**
**(2,519)**
12,287|
|---|---|---|---|
## **Analysis of cash and cash equivalents**
|Cash in hand
**Total cash and cash equivalents**|Designated
funds
£
25,089
25,089|Unrestricted
funds
£
19,211
19,211|**Total** Total
**funds**
funds
**2020**
2019
**£**
£
**44,300**
46,980
**44,300**
46,980|
|---|---|---|---|
Page 9 of 12
**Chudleigh Knighton Pre School Limited - Annual Accounts 2019/20**
## **Notes to the Accounts**
## **1. Accounting policies**
## **1.1 Basis of preparation**
The accounts have been prepared under the historical cost convention and the accounting policies have been consistently applied. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS102) effective from 1 January 2015, and applicable UK Accounting Standards (FRS102) and the Charities Act 2011.
The Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Trustees consider it appropriate to adopt the going concern basis in preparing the accounts.
In preparing the accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 a restatement of comparative items was needed. No restatements were required.
## **1.2 Funds structure**
Unrestricted funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects.
Designated funds which are expendable, are funds set aside to deal with items of unusual expenditure such as redundancy payments (should they be relevant) and repairs to the building.
## **1.3 Incoming resources**
All incoming resources are recognised once the Charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
## **1.4 Resources expended**
All expenditure is accounted for on an accruals basis and is recognised when a legal or constructive obligation arises, resulting in a payment being unavoidable.
## **1.5 Taxation**
The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.
## **1.6 Charitable activities**
Costs of charitable activities comprise all costs incurred in the pursuit of the objects of the Charity. These costs are shown in Note 3.
## **1.7 Audit Exemption Statement**
For the year ended 31 August 2020, the company was entitled to exemption under section 477 of the companies act 2006 relating to small companies. The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.
## **1.8[ Depreciation Policy]**
Depreciation is calculated at 20% to reflect the type of equipment and expected duration of use.
Page 10 of 12
**Chudleigh Knighton Pre School Limited - Annual Accounts 2019/20**
## **Notes to the Accounts**
|**2 Analysis of turnover**
By activity
DCC fees
Parent fees
Fundraising cash c/f
**Other**
**Total**
**3 Charitable activities**
**3.1 Employee costs**
The aggregate payroll costs were as follows
Staff wages
Employer's social security and pension contributions
Total employee costs
**3.2 Administrative expense**
Premises cost
Rental
Depreciation
Equipment cost
Insurance
Children's snacks and milk
Memberships and subscriptions
Consumables
Legal and professional
Other
**Total cost of charitable activities**
**4 Property, plant and equipment**
**Cost**
At 1 September 2019
Additions during year 2019/20
**Cost at 31 August 2020**
**Depreciation**
At 1 September 2019
Charge for year 2019/20
**At 31 August 2020**
**Net book values**
At 31 August 2019
**At 31 August 2020**
Depreciation calculated at 20%
**5 Debtors**
**Debtors under one year**
Other debtors
**6 Creditors: amounts falling due within one year**
Other creditors|**Total**
Total
**2020**
2019
**£**
£
**62,311**
67143
**5,397**
18924
**284**
1348
**709**
299
**68,701**
87714|**Total**
Total
**2020**
2019
**£**
£
**62,311**
67143
**5,397**
18924
**284**
1348
**709**
299
**68,701**
87714|
|---|---|---|
||**Total**
Total
**2020**
2019
**£**
£
**52111**
57802
**2301**
2392||
||**54412**
60194||
||**861**
2292
**6,257**
6291
**1,273**
765
**201**
1284
**611**
604
**667**
805
**476**
418
**2,269**
1558
**300**
0
**4,884**
2095||
||**17799**
16112||
||**72,211**
76,306||
||£
2342
201
**2543**
765
508
**1273**
1577
**1270**
**2020**
2019
**0**
416
**0**
0
**2020**
2019
**£**
£
**124**
57|£
2342
201|
|||**2543**
765
508|
|||**1273**
1577|
Page 11 of 12
**Chudleigh Knighton Pre School Limited - Annual Accounts 2019/20**
## **Notes to the Accounts**
## **7 Provisions: amounts falling due within one year**
|As at 1 Sept
Arising during the year
Utilised during the year
As at 31 August
**8 Commitments**
Annual commitments under non-cancellable operating leases are as follows:
Operating leases which expire:
Within one year
In the second to fifth years inclusive
Over five years|**2020**
**£**
**-**
**-**
**-**
**-**
**2020**
**Land and**
**buildings**
**£**
**2,600**
**-**|2019
£
-
-
-|
|---|---|---|
|||-|
|||2019
Land and
buildings
£
6,240
2,600
-|
In the year ended 31 August 2020 the company paid £6,240 (2019: £6,240) in respect of rentals due under operating leases.
## **9. Investment income**
|Interest on cash held on deposit (current assets)|**2020**
**£**
**40**
**40**|2019
£
49|
|---|---|---|
|||49|
## **10 Related party transactions**
The Trustees provide their Trustee services to the Charity on a purely voluntary basis. No members of the PreSchool's trustees have received honoraria, emoluments or expenses from the Charity in the year.
## **11 Reserves**
|At the beginning of year:
Surplus for year
Transfers|Designated
Untrestricted
funds
funds
£
£
25,049
23,867
40
(3,510)
0
0
25,089
20,357|**Total**
**funds**
**£**
**48,916**
**(3,470)**
**-**|
|---|---|---|
|||**45,446**|
Page 12 of 12