## 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 2022
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Group's logo
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## Brownberrie Lane Pre-School Limited
Annual Report and Financial Statements for the year ended 31 July 2022
|**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 12|
**Prepared by West Yorkshire Community Accountancy Service CIO**
1
## Brownberrie Lane Pre-School Limited
## Trustees' report for the year ended 31 July 2022
## **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 Dates**
Amity Watts Steven Bromley Dr. Julia Hackett Sinead Lister Ben Clare Hailey Clare Miranda Seed
## **Charity number**
**Company number**
## **Registered and principal address**
Chair
1140348 07211283
## **Bankers**
Appointed September 2022 Appointed July 2022 Appointed July 2022 Resigned January 2023 Resigned January 2023 Resigned July 2022
Registered in England and Wales Registered in England and Wales
Brownberrie Lane HSBC Bank plc Horsforth 88 Town Street Leeds Horsforth LS18 5SD Leeds LS18 4AR
## **Independent examiner**
Alan Dodd FCCA
## **West Yorkshire Community Accountancy Service CIO**
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.
## Brownberrie Lane Pre-School Limited
## Trustees' report (continued) for the year ended 31 July 2022
## **The charity's main activities**
Provision of 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**
The charity has continued to provide an excellent standard of childcare, demonstrated by an 'Outstanding' Ofsted award in the summer term, placing Brownberrie in the top 20% of UK nursery settings for education provision. The charity has benefited from a new kitchen, installed at a cost of more than £16,000 in April 2022 which has enabled the setting to provide home cooked, fresh hot meals during the teatime shifts which have remained very busy. We used the surplus from the previous academic year to pay for this, Other significant investment included a new laptop for the office and administration duties. We faced some challenges with our outside space including a burst pipe beneath the property, but this was rectified by the council and we were able to pay to reform and refresh the outside play area. Aware of rising costs and with the covid-19 situation still very fresh in our minds, we kept a close eye on costs throughout the year and forecast a loss, but a higher than predicted income meant we finished the year turning a small surplus, which we will reinvest in the business.
## **Financial review**
The net expenditure for the year was £16,539, wholly on unrestricted funds .
We have worked on a budget and forecast for the year and kept a close eye on cash flow to ensure the financial health of the business. We set aside funds for maintenance and building improvements at the beginning of the financial year, so these were budgeted for. Our registers became full as the year progressed, guaranteeing maximum income. Trustees reviewed the financial situation as the year progressed, and made adjustments to the budget accordingly.
## **Reserves policy**
The charity's free reserves, excluding fixed assets, at the year end were £110,596.
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. The reserves levels under this policy would be £60,240 to £120,480.
We have set a budget for the year and do not predict any threats to our operation. Our income remains maximised due to our registers being full, and we have a waiting list for the next year. Although we were impacted by the covid-19 situation in many ways, financially the business remained robust due to Leeds City Council (our main source of income) continuing to provide funding for the time we were open. Our private income also remained strong with a healthy number of fee-paying families remaining with us and joining. We are also positively impacted financially by the lack of available staff in the sector; although this causes strains operationally, it does prevent our wage bill from increasing dramatically.
At the time of signing these accounts the charity has been impacted by the global covid-19 virus. The trustees have reassessed the charity's ability to continue for at least 12 months from the date that the accounts are approved and concluded that no material uncertainties exist that cast significant doubt on the charity's ability to continue as a going concern.
3
## Brownberrie Lane Pre-School Limited
## Trustees' report (continued) for the year ended 31 July 2022
## **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.
Approved by the board of trustees on 28/3/2023
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 2022, which are set out on pages 6 to 12.
## **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
28/3/2023
## **West Yorkshire Community Accountancy Service CIO**
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 2022
|Notes
**Income from:**
Grants and donations
(2)
Sales and fees
Bank interest
Other income
**Total income**
**Expenditure on:**
Salaries, pensions and NIC
(3)
Payroll charges
Recruitment costs
Training
Uniforms and clothing
Rent and rates
Utilities
Cleaning and refuse
Repairs and renewals
Internet and telephone
Crafts and materials
Furniture and equipment
Printing, postage and stationery
Insurance
Membership and registration fees
Food and supplies
Independent examination
DBS checks
Bank charges and interest
Party and gifts
Activities and events
Professional fees
IT, computer and software subscriptions
TV licence
Advertising and promotion
Depreciation
Other expenses
**Total expenditure**
**Net income / (expenditure)**
**Fund balances brought forward**
**Fund balances carried forward**|2022
Total
funds
£
122,480
90,136
16
994
213,626
171,698
1,744
1,814
1,085
26
5,511
5,514
2,809
6,881
1,281
8,536
1,493
608
2,661
839
9,805
900
232
158
570
360
1,313
258
159
295
3,580
35
230,165
(16,539)
141,453
124,914|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
123,434
141,453|
|---|---|---|
All incoming resources and resources expended derive from continuing activities.
6
## Brownberrie Lane Pre-School Limited
## Balance sheet
|as at 31 July 2022
**Fixed assets**
Tangible assets
(4)
**Total fixed assets**
**Current assets**
Debtors and prepayments
(5)
Cash at bank and in hand
**Total current assets**
**Current liabilities:**
**amounts falling due within one year**
Creditors and accruals
(6)
**Total current liabilities**
**Net current assets / (liabilities)**
**Net assets**
**Funds**
Unrestricted funds
**Total funds**|2022
Total
£
14,318
14,318
4,465
109,888
114,353
3,757
3,757
110,596
124,914
124,914
124,914|2021
Total
£
-
6,053
141,035
147,088
5,635
5,635
141,453
141,453
141,453
141,453|
|---|---|---|
For the year ending 31 July 2022 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 28/3/2023
Amity Watts (Trustee)
7
## Brownberrie Lane Pre-School Limited
## Notes to the accounts
for the year ended 31 July 2022
## **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.
## **Tangible fixed assets**
Tangible fixed assets costing more than £500 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: Furniture, fixtures and fittings: over 5 years
## **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.
8
## Brownberrie Lane Pre-School Limited
Notes to the accounts
for the year ended 31 July 2022
## **1 Accounting policies continued**
## **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.
9
## Brownberrie Lane Pre-School Limited
## Notes to the accounts continued
## for the year ended 31 July 2022
|**2 Grants and donations**
Leeds City Council nursery education funding
Linley and Simpson
Other donations
**3 Staff costs and numbers**
Gross salaries
Social security costs
Employment allowance
Pensions|2022
Total
funds
£
122,435
-
45
122,480
2022
£
160,486
12,778
(4,804)
3,238
171,698|2021
Total
funds
£
164,884
750
940
166,574
2021
£
162,657
9,838
(4,708)
2,622
170,409|
|---|---|---|
The average number of employees during the year was 11.8, being an average of 7 full time equivalent (2021: 12.3, 7.4 FTE). There were no employees with emoluments above £60,000.
|**Defined contribution pension scheme**|2022|2021|
|---|---|---|
||£|£|
|Costs of the scheme to the charity for the year|3,238|2,622|
10
## Brownberrie Lane Pre-School Limited
## Notes to the accounts continued
## for the year ended 31 July 2022
|**4 **
**5 **
**6 **|**Tangible assets**
**Cost**
At 1 August 2021
Additions
At 31 July 2022
**Depreciation**
At 1 August 2021
Charge for year
At 31 July 2022
**Net book value**
At 31 July 2022
At 31 July 2021
**Debtors and prepayments**
Prepayments
**Creditors and accruals**
Creditors
Accruals
Pension
Taxation and social security
Other creditors|£
-
17,898
17,898
-
3,580
3,580
14,318
-
2022
£
4,465
4,465
2022
£
92
900
-
2,679
86
3,757
Furniture,
fixtures and
fittings|Total
£
-
17,898
17,898
-
3,580
3,580
14,318
-
2021
£
6,053
6,053
2021
£
1,787
900
563
2,081
304
5,635|
|---|---|---|---|
## **7 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 £45,471 (previous year: £38,915).
11
## 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 2022
|2022
2021
Unrestricted Unrestricted
funds
funds
£
£
**Income**
Grants and donations
122,480
165,824
Sales and fees
90,136
62,082
Bank interest
16
7
Other income
994
963
**Total income**
213,626
228,876
**Expenditure**
Salaries, pensions and NIC
171,698
170,409
Payroll charges
1,744
1,710
Recruitment costs
1,814
-
Training
1,085
346
Uniforms and clothing
26
214
Rent and rates
5,511
5,032
Utilities
5,514
4,518
Cleaning and refuse
2,809
1,999
Repairs and renewals
6,881
2,320
Internet and telephone
1,281
1,201
Crafts and materials
8,536
7,011
Furniture and equipment
1,493
379
Printing, postage and stationery
608
793
Insurance
2,661
2,765
Membership and registration fees
839
870
Food and supplies
9,805
8,167
Independent examination
900
900
DBS checks
232
187
Bank charges and interest
158
142
Party and gifts
570
521
Activities and events
360
307
Professional fees
1,313
200
IT, computer and software subs
258
408
TV licence
159
159
Advertising and promotion
295
-
Depreciation
3,580
-
Other expenses
35
230
**Total expenditure**
230,165
210,788
**Net income / (expenditure)**
(16,539)
18,088
**Transfers between funds**
-
(69)
**Net movement in funds**
(16,539)
18,019
**Fund balances brought forward**
141,453
123,434
**Fund balances carried forward**
124,914
141,453|2022
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|2021
Restricted
funds
£
750
-
-
-
750
-
-
-
-
-
-
-
485
247
-
-
87
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
819
(69)
69
-
-
-|2022
Total
funds
£
122,480
90,136
16
994
213,626
171,698
1,744
1,814
1,085
26
5,511
5,514
2,809
6,881
1,281
8,536
1,493
608
2,661
839
9,805
900
232
158
570
360
1,313
258
159
295
3,580
35
230,165
(16,539)
-
(16,539)
141,453
124,914|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|
|---|---|---|---|---|
12