2020-07-31-accounts

Company registration number: 07299073 Charity registration number: 1137119

Streatley Hill Pre-school

(A company limited by guarantee)

Annual Report and Financial Statements for the Year Ended 31 July 2020

Streatley Hill Pre-school

Contents

Reference and Administrative Details	1
Trustee’s report	2
Independent Examiners Report	6
Statement of Financial Activities	7
Balance Sheet	8
Notes to the financial statement	9 – 16

Streatley Hill Pre-school

Reference and Administrative Details

Trustees

Shelley-Anne Smith, Chair until 27[th] April 2020 Iman Khonji, Chair from 1[st] May 2020 David Evans, Treasurer Mark McDonald, Company Secretary Laura Miles, Health and Safety

Principal Office

The Coombe Streatley Reading Berkshire RG8 9RD Registered Office

The Coombe Streatley Reading Berkshire RG8 9RD Company Registration Number

07299073

Charity Registration Number

1137119

Independent Examiner

AIMs Accountants for Business Twitchen Odiham Road Riseley Berks RG7 1SD

Page 1

Streatley Hill Pre-school

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 July 2020.

Charity Name

Streatley Hill Pre-School

Charity Registration Number

1137119

Company Registration Number

Streatley Hill Pre-School is a company limited by guarantee, with company number 07299073

Principal Office

The Coombe, Streatley, Reading, Berkshire, RG8 9RD

Trustees on Date Report Approved

The Trustees as at the date of signing of the Annual Report are:

• Iman Khonji

• David Evans

• Mark McDonald

• Laura Miles

The above Trustees are also directors of the company.

Trustees for the Financial Year to 31 July 2020

• David Evans

• Mark McDonald

• Laura Miles

• Iman Khonji

The following Trustees resigned:

• Emma Francis (Resigned September 2019) • Lloyd Jenkins (Resigned September 2019) • Emma Sisson (Resigned September 2019) • Yvonne Siggemann (Resigned October 2019) • Nikhil Kulkarni (Resigned November 2019) • Shelley-Anne Smith (Resigned April 2020)

Page 2

Structure, Governance and Management

Governing Document

The organisation is a charitable company limited by guarantee incorporated on 14 June 2010. The company was established under a Memorandum of Association and is governed under its Articles of Association.

Recruitment and Appointment of Trustees

The Trustees are appointed by election from the parent members of the pre-school in accordance with the requirements of the Articles of Association.

Objectives and Activities

Objectives

Streatley Hill Pre-School provides Early Years Education for children aged 2-5. Our charity’s main purposes, as set out in the objectives contained in the company’s Articles of Association, are to enhance the development of children under statutory school age by offering appropriate play, education and care facilities.

Activities

2020 will undoubtedly go down in history as the year the world was turned upside down with the arrival of COVID-19.

Before the outbreak, the pre-school

• was open four-and-a-half days a week during term time with the staff following the Early Years curriculum and the emphasis on learning through play.

• continued its principle of ensuring children are understood as individuals and given the attention they need in making their experience of the pre-school a positive one with educational activities based on their individual needs as well as their interests.

• supported and invested in the ongoing learning and development of our staff through appropriate training courses.

• consolidated on the financial turnaround of 2018-2019 and began to make plans to continue investing in the pre-school’s facilities.

As one would expect, COVID had an enormous impact on the pre-school’s activities this year with a temporary closure of the pre-school at the end of March, and the cancellation of many social and fundraising events, including our biggest fundraiser of the year “The Summer Ball”.

After a brief hiatus, the pre-school re-opened first with on-line interaction between staff and children, and then in May with ‘bubbles of children’ returning to site.

Achievements and Performance

Children

Children always come first at Streatley Hill Pre-School and we have continued to ensure their safeguarding through ongoing compliance with regulations, and up-to-date training for staff and committee members. We monitor and ensure all DBS checks are updated when renewal is due.

Beyond this, our priority has been to ensure it has been safe for children, staff, and parents/carers to attend the pre-school. The committee and staff have continually reviewed, and updated risk assessments as new government advice arose, and have invested in new equipment and materials, where appropriate.

Before the temporary closure of the school in March, there were 29 children attending the pre-school.

Page 3

Community

The pre-school continued to build and strengthen relationships with the local community, and with the arrival of COVID has had to rely on these relationships to a degree for support.

We have continued to raise the profile of the pre-school through articles in the Goring Gap News, and have worked closely with local contractors, where possible, to ensure a mutual benefit to both parties.

Financial Review

General

Having had a successful financial year in 2018-2019, the pre-school set out to consolidate on this success and to make plans to invest in and upgrade in the pre-school’s facilities. However, everything changed with the arrival of COVID. Costs continued, and revenues diminished with lower fees reflecting the reduced numbers attending the pre-school and the cancellation of established fundraising events.

Led by our new chair, Iman Khonji, the pre-school looked at alternative ways to raise money and after a hugely successful three months of fundraising, the pre-school were able to turn an undoubted deficit into a small surplus.

Key income figures include:

• Total income: £93,377 • Income from fees: £75, 426 • Income from fundraising (excl. grants): £ 11,154 • Income from grants £ 6,439

• (Includes ‘Furlough’ payments)

• Other Income £ 358

• Total income exceeded total expenditure with a small surplus of £1,668.

• Reserves were replenished in line with the pre-school’s Finance Policy, ensuring both the shortterm financial health and long-term viability of the setting is protected

Grant Funding

Excluding the governments’ furlough payments, the pre-school secured grants of:

• £2,299 to supporting SEND (special educational needs and disability) children

• £500 from The Gatehampton Trust

• £500 from Groundwork UK (Tesco)

At 31 July 2020, remaining amounts of £1,685 were held in a separate, ring-fenced bank account.

Reserves

The Trustees have examined the charity’s requirements for reserves in light of the main risks faced by the organisation. These are set out in an established Finance Policy and comprise:

• Redundancy liabilities in case of closure – 25% of total annual wages

• General running costs contingency to offset funding and/or cashflow shortfall – one term’s expenditure (excluding maintenance and depreciation)

• Maintenance contingency to meet urgent repairs – equal to one term’s maintenance expenditure, averaged over the previous three years

• Designated contingency, accumulating over time, to cover the estimated costs of replacing the pre-school building – based on the depreciation of the asset over its useful economic life.

Page 4

On the above basis, required reserves at 31 July 2020 were £70,000. The pre-school satisfied this requirement, holding its reserves in a separate, dedicated bank account.

Fees

Fees were held flat in 2019-20.

2020-21 Funding Priorities

The Trustees are committed to maintaining the strong financial health of Streatley Hill Pre-School and will continue to accumulate the designed contingency.

The annual report was approved by the Trustees of the charity on September 2020 and signed on its behalf by:

David Evans.

Trustee and Treasurer

Page 5

Streatley Hill Pre-school

Independent Examiner's Report to the trustees of STREATLEY HILL PRE-SCHOOL

I report on the accounts of the charity for the year ended 31 July 2020 which are set out on pages 7 to 16 .

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 trustees consider that an audit is not required for this year 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 audit under company law and is eligible for 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 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 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 seeking explanations from you as 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 examiner's statement

In connection with my examination, no matter has come to my attention:

• (1) which gives me reasonable cause to believe that in any material respect the requirements:

• to keep accounting records in accordance with section 386 of the Companies Act 2006; and

• to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities

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.

......................................

Andy Eagles ACMA

Twitchen Odiham Road Riseley Berks RG7 1SD

29 September 2020

Page 6

Streatley Hill Pre-school

Statement of Financial Activities for the Year Ended 31 July 2020 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

	Unrestricted Total
	funds 2020
Note	£ £
Income and Endowments from:
Donations and legacies 3	17,593 17,593
Other trading activities 4	75,426 75,426
Investment income 5	116 116
Other income 6	242 242
Total Income
	93,377 93,377
Expenditure on:
Charitable activities 7	(91,709) (91,709)
Total Expenditure
	(91,709) (91,709)
Net income
	1,668 1,668
Net movement in funds
	1,668 1,668
Reconciliation of funds
Total funds brought forward
	196,409 196,409
Total funds carried forward 13
	198,077 198,077
	Unrestricted Total
	funds 2019
Note	£ £
Income and Endowments from:
Donations and legacies 3	20,471 20,471
Other trading activities 4	94,638 94,638
Investment income 5	79 79
Other income 6	1,606 1,606
Total Income
	116,794 116,794
Expenditure on:
Charitable activities 7	(88,901) (88,901)
Total Expenditure
	(88,901) (88,901)
Net income
	27,893 27,893
Net movement in funds
	27,893 27,893
Reconciliation of funds
Total funds brought forward
	168,516 168,516
Total funds carried forward 13
	196,409 196,409

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

The funds breakdown for 2020 is shown in note 13.

Page 7

Streatley Hill Pre-school

(Registration number: 07299073) Balance Sheet as at 31 July 2020

	2020 2019
Note	£ £
Fixed assets
Tangible assets 10	110,353 120,719
Current assets
Debtors 11	774 2,481
Cash at bank and in hand	88,036 74,135
	88,810 76,616
Creditors: Amounts falling due within oneyear 12
	(1,086) (926)
Net currentassets
	87,724 75,690
Netassets
	198,077 196,409
Funds of the charity:
Unrestricted income funds
Unrestricted funds	198,077 196,409
Total funds 13
	198,077 196,409

The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 29th September 2020 and signed on their behalf by:

. David Evans. Trustee

Page 8

Streatley Hill Pre-school

Notes to the Financial Statements for the Year Ended 31 July 2020

1 Charity status

The charity is a charity limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

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) (effective 1 January 2015) - (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

STREATLEY HILL PRE-SCHOOL 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 trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

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.

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.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Page 9

Streatley Hill Pre-school

Notes to the Financial Statements for the Year Ended 31 July 2020

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.

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.

Tangible fixed assets

Individual fixed assets costing £100.00 or more are initially recorded at cost.

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:

No depreciation is provided in the year of addition.

No depreciation is provided in the year of addition.
Asset class	Depreciation method and rate
Freehold Property	5% straight line basis
Fixtures & Fittings	25% straight line basis

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 initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 10

Streatley Hill Pre-school

Notes to the Financial Statements for the Year Ended 31 July 2020

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

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

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 11

Streatley Hill Pre-school

Notes to the Financial Statements for the Year Ended 31 July 2020

Debt instruments

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded, or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Page 12

Streatley Hill Pre-school

Notes to the Financial Statements for the Year Ended 31 July 2020

Derivative financial instruments

The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

3 Income from donations and legacies

3 Income from donations and legacies
	Unrestricted
		Total	Total
	General	2020	2019
	£	£	£
Grants, including capital grants;
Grants from other charities	6,439	6,439	3,500
Regulargivingand capital donations	11,154	11,154	16,971
	17,593	17,593	20,471

4 Income from other trading activities

4 Income from other trading activities
	Unrestricted
	General Total 2020 Total 2019
	£ £ £
Trading income;
Sales ofgoods and services	75,426 75,426 94,638
	75,426 75,426 94,638
5 Investment income
	Unrestricted
	Total Total
	General 2020 2019
	£ £ £
Interest receivable and similar income;
Interest receivable on bank deposits	116 116 79

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Streatley Hill Pre-school

6 Other income

	Unrestricted
	Total Total
	General 2020 2019
	£ £ £
Other Income	242 242 1,606
7 Expenditure on charitable activities
	Unrestricted
	funds
	Total Total
	General 2020 2019
Note	£ £ £
Wages and salaries	65,377 65,377 61,191
Staff training	502 502 1,133
Rent and rates	470 470 439
Light, heat and power	970 970 999
Insurance	5,818 5,818 5,212
Repairs and maintenance	4,813 4,813 (1,365)
Equipment and renewals	1,467 1,467 3,718
Telephone and fax	390 390 641
Printing, postage and stationery	176 176 527
Trade subscriptions	248 248 1,337
Sundry expenses	364 364 1,154
Canteen	136 136 272
Fund Raising Activities	135 135 3,122
Accountancy fees	312 312 552
Legal and professional fees	65 65 471
Bank charges	100 100 113
Depreciation of freehold property	9,385 9,385 9,385
Depreciation of fixtures and fittings	981 981 -
	91,709 91,709 88,901

Page 14

Streatley Hill Pre-school

Notes to the Financial Statements for the Year Ended 31 July 2020

8 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

9 Taxation

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

10 Tangible fixed assets

10 Tangible fixed assets	10 Tangible fixed assets
Land and buildings Furniture and equipment Total
£ £ £
Cost
At 1 August 2019 187,700 12,879 200,579
At 31 July2020 187,700 12,879 200,579
Depreciation
At 1 August 2019 70,905 8,955 79,860
Charge for theyear 9,385 981 10,366
At 31 July2020 80,290 9,936 90,226
Net book value
At 31 July2020 107,410 2,943 110,353
At 31 July2019 116,795 3,924 120,719
11 Debtors
	2020 2019
	£ £
Prepayments	774 774
Other debtors	- 1,707
	774 2,481
12 Creditors: amounts falling due within one year
	2020 2019
	£ £
Accruals	1,086 926

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Streatley Hill Pre-school

Notes to the Financial Statements for the Year Ended 31 July 2020

13 Funds
Balance at 1 August 2019	Incoming Resources Balance at 31
	resources expended July 2020
£	£ £ £
Unrestricted funds
General (196,409)
	(93,377) 91,709 (198,077)
Balance at 1 August 2018	Incoming Resources Balance at 31
	resources expended July 2019
£	£ £ £
Unrestricted funds
General (168,516)
	(116,794) 88,901 (196,409)
14 Analysis of net assets between funds
	Unrestricted
	funds
	General Total funds
	£ £
Tangible fixed assets	110,353 110,353
Current assets	88,810 88,810
Current liabilities	(1,086) (1,086)
Total net assets	198,077 198,077
15 Analysis of net funds
	At 1 August
	2019 Cash flow At 31 July 2020
	£ £ £
Cash at bank and in hand	74,135 13,901 88,036
	74,135 13,901 88,036
Net debt

Page 16