## Brownberrie Lane Pre-School Limited
Charity number 1140348
A company limited by guarantee number 07211283
Annual Report and Financial Statements
for the year ended 31 July 2021
## Brownberrie Lane Pre-School Limited
Annual Report and Financial Statements for the year ended 31 July 2021
|**Contents**|**Page**|
|---|---|
|Trustees' report|2 to 4|
|Examiner's report|5|
|Statement of financial activities|6|
|Balance sheet|7|
|Notes to the accounts|8 to 11|
## **Prepared by West Yorkshire Community Accounting Service**
1
## Brownberrie Lane Pre-School Limited
## Trustees' report for the year ended 31 July 2021
## **Reference and administrative details of the charity, its trustees and advisors**
The trustees during the financial year and up to and including the date the report was approved were: **Name Position** Amity Watts Chair Miranda Seed Treasurer Hailey Clare Ben Clare **Charity number** 1140348 Registered in England and Wales **Company number** 07211283 Registered in England and Wales **Registered and principal address Bankers** Brownberrie Lane HSBC Bank plc Horsforth 88 Town Street Leeds Horsforth LS18 5SD Leeds LS18 4AR
Registered in England and Wales Registered in England and Wales
## **Independent examiner**
Alan Dodd FCCA **West Yorkshire Community Accounting Service** Stringer House 34 Lupton Street Leeds LS10 2QW
## **Structure, governance and management**
The charity is a company limited by guarantee and was formed on 1 April 2010. It is governed by a memorandum and articles of association. The liability of the members in the event of the company being wound up is limited to a sum not exceeding £1.
## **Method of recruitment and appointment of trustees**
The trustees of the charity are also the directors for the purposes of company law and are appointed by the members at the AGM.
## **Objectives and activities**
## **The charity's objects**
To enhance the development and education of children under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups.
To offer appropriate play, education and care facilities and training courses, together with the right of parents to take responsibility for and 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.
To encourage the study of the needs of such children and their families and promote public interest in and recognition of such needs.
To instigate and adhere to and further the aims and objects of the Pre-school Learning Alliance.
2
## Brownberrie Lane Pre-School Limited
## Trustees' report (continued) for the year ended 31 July 2021
## **Objectives and activities (continued)**
## **The charity's main activities**
Provides pre-school, term time only, early years education for children aged two to five years old.
## **Public benefit statement**
In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular the advancement of education.
## **Achievements and performance**
We re-opened in September 2020 with our one-room setting divided into two as per recommended 'bubbles' guidance for education settings. As this represented a big change from our previous operating structure, it presented challenges for both children and staff who were uncomfortable with the change.
We reverted to one room in spring 2021. The charity being in a positive financial position, trustees and management agreed to continue to pay staff wages in the event of a shut down, so in January 2021 when we were forced to close by Government directive, we continued to pay our staff. We gave private fee-paying families the option of continuing to pay us while their child was at home, but ensured we would keep all places regardless. We tried to use 'holiday credit' as a way of allowing families to use up some of the lost days of childcare from the spring lockdown of 2020, but this put us in a negative position financially and we will not repeat this offer.
Many of the challenges we faced were sector-wide, including the financial and time cost of extra cleaning, and the difficulty of recruiting new members of staff. We agreed to promote one staff member to Senior Practitioner following her positive impact on the children and setting, and made plans to cover two maternity leaves from summer 2021. We investigated other methods of recruitment including offering a placement student from the Leeds Universities but the establishments did not think we should proceed, given the ever-changing nature of government guidance and the already considerable pressures on staff.
## **Financial review**
The net income for the year was £18,019, including net income of £18,019 on unrestricted funds and net income of £0 on restricted funds after transfers.
## **Reserves policy**
The charity's free reserves, excluding fixed assets, at the year end were £141,453.
We have fewer children enrolled from September 21 than in previous years and are predicting a loss of c. £10k in the year 21/22 as a result. However, we are in a very secure financial position because of profits received in previous years and are easily able to absorb this loss without diminishing our reserves. As our lucrative teatime shifts had become very full, we ring-fenced money to pay for an upgraded kitchen in 2022 to cope with this increased demand while putting lower priority maintenance and marketing projects such as external signage and website on hold until we know the financial outcome of the 2021/2022 year.
The trustees have ring-fenced an amount of funds to cover wages and running costs for 3-6 months should the setting experience financial difficulty. They have also calculated the cost of closure and clearance and included this amount as reserve funds. The reserves levels under this policy would be £53,000 to £106,000.
We recognise that our actual reserves are in excess of the policy upper limit, but subsequently we have invested some of this surplus in upgrading our kitchen and our playground facilities.
3
## Brownberrie Lane Pre-School Limited
## Trustees' report (continued) for the year ended 31 July 2021
## **Statement of trustees' responsibilities**
The trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees report and the financial statements in accordance with the applicable law and UK Accounting Standards.
Company law requires the trustees to prepare financial accounts 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 company for the year. In preparing these financial statements, the trustees are required to:
select suitable accounting policies and apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements 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;
prepare the accounts on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are 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 accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP (FRS102)), and in accordance with the special provisions of the Companies Act 2006 relating to small companies.
Signed on behalf of the board of trustees on 20/4/2022
Amity Watts (Trustee)
4
## Brownberrie Lane Pre-School Limited
## Independent examiner's report to the trustees of Brownberrie Lane PreSchool Limited
I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 July 2021, which are set out on pages 6 to 11.
## **Responsibilities and basis of report**
As the charity's trustees of the charitable 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 charitable 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 ('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 material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or 2 the accounts do not accord with those records; or
- 3 the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination; or
- 4 the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I 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.
Alan Dodd FCCA
23/4/2022
## **West Yorkshire Community Accounting Service**
Stringer House 34 Lupton Street Leeds LS10 2QW
5
## Brownberrie Lane Pre-School Limited
## Statement of Financial Activities
## (including summary income and expenditure account) for the year ended 31 July 2021
|Notes
2021
Unrestricted
funds
£
**Income from:**
Grants and donations
(2)
165,824
Sales and fees
62,082
Fundraising
-
Bank interest
7
Other income
963
Events
-
**Total income**
228,876
**Expenditure on:**
Salaries, pensions and NIC
(3)
170,409
Payroll charges
1,710
Volunteer expenses
-
Training
346
Uniforms and clothing
214
Rent and rates
5,032
Utilities
4,518
Cleaning and refuse
1,999
Repairs and renewals
2,320
Internet and telephone
1,201
Crafts and materials
7,011
Furniture and equipment
379
Printing, postage and stationery
793
Insurance
2,765
Membership and registration fees
870
Food and supplies
8,167
Independent examination
900
DBS checks
187
Bank and credit charges
142
Party and gifts
521
Activities and events
307
Professional fees
200
IT, computer and software subscriptions
408
TV licence
159
Playground refurbishment
-
Other expenses
230
**Total expenditure**
210,788
**Net income / (expenditure)**
18,088
**Transfers between funds**
(69)
**Net movement in funds**
18,019
**Fund balances brought forward**
123,434
**Fund balances carried forward**
(4)
141,453|2021
Restricted
funds
£
750
-
-
-
-
-
750
-
-
-
-
-
-
-
485
247
-
-
87
-
-
-
-
-
-
-
-
-
-
-
-
-
-
819
(69)
69
-
-
-|2021
Total
funds
£
166,574
62,082
-
7
963
-
229,626
170,409
1,710
-
346
214
5,032
4,518
2,484
2,567
1,201
7,011
466
793
2,765
870
8,167
900
187
142
521
307
200
408
159
-
230
211,607
18,019
-
18,019
123,434
141,453|2020
Total
funds
£
155,678
55,850
724
109
1,071
882
214,314
149,486
1,124
341
440
737
5,305
3,248
1,872
4,340
1,199
7,700
3,111
422
2,728
1,022
6,536
900
26
117
81
983
-
402
144
7,446
73
199,783
14,531
-
14,531
108,903
123,434|
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
6
## Brownberrie Lane Pre-School Limited
## Balance sheet
|as at 31 July 2021
2021
Unrestricted
£
**Current assets**
Debtors and prepayments
(5)
6,053
Cash at bank and in hand
(6)
141,035
**Total current assets**
147,088
**Current liabilities:**
**amounts falling due within one year**
Creditors and accruals
(7)
5,635
**Total current liabilities**
5,635
**Net current assets / (liabilities)**
141,453
**Net assets**
141,453
**Funds**
Unrestricted funds
141,453
Restricted funds
-
**Total funds**
141,453|2021
Restricted
£
-
-
-
-
-
-
-
-
-
-|2021
Total
£
6,053
141,035
147,088
5,635
5,635
141,453
141,453
141,453
-
141,453|2020
Total
£
5,973
122,347
128,320
4,886
4,886
123,434
123,434
123,434
-
123,434|
|---|---|---|---|
For the year ending 31 July 2021 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476. The trustees (who also the directors for the purposes of company law) acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and with FRS 102 (effective January 2019).
The financial statements were approved by the board of trustees on 20/4/2022
Amity Watts (Trustee)
7
## Brownberrie Lane Pre-School Limited
## Notes to the accounts
for the year ended 31 July 2021
## **1 Accounting policies**
## **Basis of accounting**
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. 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 and Republic of Ireland (FRS 102) (effective 1 January 2019) and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102. There has been no change to the accounting policies since last year. No changes have been made to the accounts for previous years.
## **Going concern**
The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.
## **Incoming resources**
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.
## **Grants and donations**
Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.
## **Expenditure and liabilities**
Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.
## **Taxation**
As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.
## **Pensions**
The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
8
## Brownberrie Lane Pre-School Limited
## Notes to the accounts continued
## for the year ended 31 July 2021
|**2 Grants and donations**
Leeds City Council Nursery Education funding
Linley and Simpson
Lloyds Bank Foundation
Groundwork UK - Tesco
Other donations
**3 Staff costs and numbers**
Gross salaries
Social security costs
Employment allowance
Pensions|2021
Unrestricted
funds
£
164,884
-
-
-
940
165,824|2021
Restricted
funds
£
-
750
-
-
-
750|2021
Total
funds
£
164,884
750
-
-
940
166,574
2021
£
162,657
9,838
(4,708)
2,622
170,409|2020
Total
funds
£
154,556
-
462
500
160
155,678
2020
£
141,217
8,592
(3,049)
2,726
149,486|
|---|---|---|---|---|
The average number employees during the year was 12.3, being an average of 7.4 full time equivalent (2020: 9, 7.7 FTE). There were no employees with emoluments above £60,000.
|**Defined contribution pension scheme**
Costs of the scheme to the charity for the year
**4 Restricted funds**
Balance b/f
£
Linley and Simpson
-
-|Incoming
£
750
750|Outgoing
£
819
819|2021
£
2,622
Transfers
£
69
69|2020
£
2,726
Balance c/f
£
-
-|
|---|---|---|---|---|
## **Fund name Purpose of restriction**
Linley and Simpson
From a local estate agent's community initiative, towards the costs of repairing damage to vandalised play equipment and upgrading the security system. Excess expenditure is shown as a transfer from unrestricted funds.
9
## Brownberrie Lane Pre-School Limited
## Notes to the accounts continued
for the year ended 31 July 2021
|**5 Debtors and prepayments**
Prepayments
**6 Cash at bank and in hand**
Current account
Savings account
Fundraising account
**7 Creditors and accruals**
Creditors
Accruals
Pension
Taxation and social security|2021
£
6,053
6,053
2021
£
71,140
68,213
1,682
141,035
2021
£
1,787
1,204
563
2,081
5,635|2020
£
5,973
5,973
2020
£
52,459
68,206
1,682
122,347
2020
£
1,697
900
586
1,703
4,886|
|---|---|---|
Brownberrie Lane Pre-School Limited has entered into an agreement with Close Premium Finance to pay the insurance premium to The Pre-school Learning Alliance. Creditors include the 9 payments due in the next financial year (£1,631) and the relevant credit charge (£64).
## **8 Related party transactions**
## **Trustee expenses**
No trustee received any expenses during this year or the previous year.
## **Trustee remuneration and benefits**
No trustee received any remuneration or benefit during this or the previous year.
## **Remuneration and benefits received by key management personnel**
The key management personnel of the charity include the trustees and Manager. The total employee benefits received were £38,915 (previous year: £32,331).
No trustee received any remuneration or benefit in this capacity during this or the previous year.
10
## Brownberrie Lane Pre-School Limited
## Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 July 2021
|2021
2020
Unrestricted Unrestricted
funds
funds
£
£
**Income**
Grants and donations
165,824
155,678
Sales and fees
62,082
55,850
Fundraising
-
724
Bank interest
7
109
Other income
963
1,071
Events
-
882
**Total income**
228,876
214,314
**Expenditure**
Salaries, pensions and NIC
170,409
149,486
Payroll charges
1,710
1,124
Volunteer expenses
-
341
Training
346
440
Uniforms and clothing
214
737
Rent and rates
5,032
5,305
Utilities
4,518
3,248
Cleaning and refuse
1,999
1,872
Repairs and renewals
2,320
4,340
Internet and telephone
1,201
1,199
Crafts and materials
7,011
7,700
Furniture and equipment
379
3,111
Printing, postage and stationery
793
422
Insurance
2,765
2,728
Membership and registration fees
870
1,022
Food and supplies
8,167
6,536
Independent examination
900
900
DBS checks
187
26
Bank and credit charges
142
117
Party and gifts
521
81
Activities and events
307
983
Professional fees
200
-
IT, computer and software subs
408
402
TV licence
159
144
Playground refurbishment
-
7,446
Other expenses
230
73
**Total expenditure**
210,788
199,783
**Net income / (expenditure)**
18,088
14,531
**Transfers between funds**
(69)
-
**Net movement in funds**
18,019
14,531
**Fund balances brought forward**
123,434
108,903
**Fund balances carried forward**
141,453
123,434|2021
Restricted
funds
£
750
-
-
-
-
-
750
-
-
-
-
-
-
-
485
247
-
-
87
-
-
-
-
-
-
-
-
-
-
-
-
-
-
819
(69)
69
-
-
-|2020
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|2021
Total
funds
£
166,574
62,082
-
7
963
-
229,626
170,409
1,710
-
346
214
5,032
4,518
2,484
2,567
1,201
7,011
466
793
2,765
870
8,167
900
187
142
521
307
200
408
159
-
230
211,607
18,019
-
18,019
123,434
141,453|2020
Total
funds
£
155,678
55,850
724
109
1,071
882
214,314
149,486
1,124
341
440
737
5,305
3,248
1,872
4,340
1,199
7,700
3,111
422
2,728
1,022
6,536
900
26
117
81
983
-
402
144
7,446
73
199,783
14,531
-
14,531
108,903
123,434|
|---|---|---|---|---|
11