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2020-08-31-accounts

Charity number: 1141426

JELLY TOTS PRE-SCHOOL

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Charity number: 1141426

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

REPORT OF THE TRUSTEES

The trustees present their report and the financial statements of the charity for the year ended 31 August 2020. This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102), and update Bulletins.

Reference and administrative information

Registered charity number: 1141426 Location: Southbourne Community Centre Southbourne Gardens Eastcote Middlesex HA4 9SQ Banker : HSBC, 65 High Street, Ruislip, Middlesex HA4 8JE Independent Examiner: Richard Garner, 2 Vernon Walk, Tadworth, Surrey, KT20 5QP

Registered organisations

The Pre-school is registered with the following statutory organisations: Ofsted (Registration number EY430565) Early Years Alliance (Registration number 107011) London Borough of Hillingdon Families Information Services Department

Trustees

The trustees who served during the period from 1 September 2019 up to the end of October 2020 were:

Chair Mrs A L B Lee Secretary Mrs T J Holder Treasurer Mr S Murray FCA Joint Managers Mrs C Williams Mrs J McMahon

Trustees Mr J Crewe Ms A McKeever Ms S Miller-Snell Ms J Ransome Miss K M Spencer Miss H Woodward

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

Report from the Chair – Anne Lee

From September 2019 Carrie was the manager and Jill was the deputy manager. The problem of COVID-19 started in the spring of 2020 and the Pre-school closed for the governmentimposed “lockdown”. The wages were taken from the funding from the London Borough of Hillingdon and topped up to 80% by the government’s Job Retention Scheme (“furlough”). All staff all signed a furlough contract to be reviewed when necessary.

The Pre-school was able to open again (following government guidelines) with 4 shorter sessions each week from 8[th] June 2020 with the permission of the trustees of Eastcote Community Centre. Only three staff members were able to come to work. Jill became joint manager as she was able to be at the Centre all the time.

Also this year, our long standing accountant Alastair sadly passed away. We would like to thank Alastair for all his hard work and support over the years. Alastair will be very sadly missed. Luckily, Sean Murray, a qualified accountant has very kindly stepped into this role. We would like to welcome Sean to the Jelly Tots Pre-school team.

As a charity serving the local community, we aim to keep the fees that we charge parents as low as possible. We also aim to not increase our fees during the Pre-school year so that parents can plan accordingly.

The trustees agreed in October 2020 that an AGM would not be held due to COVID-19. The trustees have approved the accounts by email.

Aims, objectives and activities

Aims and objectives

The aims and objectives of the Pre-school are to:

The Pre-school benefits all members of the public that require Pre-school places for their children in the area.

Principal activities

The Pre-school sessions are held in Southbourne Community Centre in Eastcote. The Centre charges a fee to the Pre-school which gives it the use of two rooms on the ground floor and the kitchen and toilet facilities. The Centre has a secure entrance with disabled access.

The Community Centre is sited within its own grounds with delightful gardens. The location has plenty of car parking available locally.

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

The Community Centre is in a residential area incorporating a wide variety of families from different cultures and economic backgrounds. The Pre-school supports children with learning difficulties, disabilities and who speak English as an additional language.

Any parents in the area can send their children to the Pre-school. The Pre-school provides, when requested, a subsidised place each year for a local parent who cannot obtain government funding.

The Pre-school has strong links with six local primary schools and nurseries, and has established a reputation as a successful inclusive Pre-school. The staff of the Pre-school have established a good working relationship with the Early Year’s Inclusion team of the London Borough of Hillingdon. The Pre-school is a champion setting for the “Attention Hillingdon” project, which is a programme to help children gain concentration skills.

From September 2019 to the government imposed lockdown, the Pre-school operated five morning sessions from 9.30 am to 1.15 pm each week. Following re-opening in June 2020, the Pre-school operated four shorter sessions a week. This has continued for the winter term of 2020-21.

The Pre-school is unable to provide afternoon sessions because the Centre is used by other organisations at that time. The Pre-school operates a successful lunch club if required by parents.

- Activities during the year The Management Team (Carrie and Jill)

The Pre-school can accommodate a maximum of 29 children, aged between 2 and 5 years old, in each session. As parents and carers determine the number of sessions their child attends, we can have as many as 60 children registered with us during a term.

We believe that play helps young children learn and develop through doing and talking, which research has shown to be the means by which young children learn. We use the Practice Guidance Early Years Foundation Stage 2012 to plan and provide a range of play activities which help children to make progress in each of the areas of learning and development. We assess how young children are learning and developing by observing them continually. We use information that we gain from observations, as well as from photographs of the children, to document their progress and where this may be leading them.

We believe that parents know their children best and at our regular parent meetings we ask parents to contribute to assessment by sharing information about what their children like to do at home and how they as parents are supporting development.

Every child is allocated to a ‘key’ member of staff who will collect information about each child's needs, activities, interests and achievements. This information will enable the key member of staff to identify each child's stage of progress so that the key member of staff can decide how to help each child to move on to the next stage.

At Pre-school we always maintain or exceed the ratio of adults to children in each session that is set through the Welfare Requirements. This helps us to:

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

All areas of learning are equally important and we understand that many activities will cover most, if not all, areas. We always try to cover each area of learning daily. We train our staff to be good role models for communication and social skills, both to each other and to the children.

We provide interesting and problem solving resources and activities which all children can enjoy and so develop new skills. We set up the hall each day into specific areas of learning and provide stimulating and motivating resources including puzzles, play-dough, smallworld, construction, literacy activities, numeracy activities, a book corner, water-play and role-play. Our staff are always on the lookout for when they need to offer support to children or when only encouragement is required.

We run key worker groups in a separate lounge each session so we can get to know the children in a smaller and more comfortable environment. The lounge area is also used for everyone to enjoy a story, singing and movement.

Staff and Volunteers

There are currently eight members of staff at Jelly Tots, plus one payroll manager. Our staff have a variety of relevant early year’s qualifications and many years of experience. All staff have current Paediatric First Aid qualifications. The staff attend regular training courses to keep up to date and learn new skills.

The trustees thank the excellent staff of the Pre-school for all their hard work during the last year, and especially the Pre-school managers who spend many hours outside session hours dealing with the increasing amount of paperwork required and to whom the trustees are extremely grateful.

The charity could not function without the help of several individuals who give freely of their time to assist with the administration required to run a registered charity. The trustees would like to thank all these individuals who help with the running of the charity and who provide continuing support.

Fee charging policy

The Pre-school’s fee charging policy reflects the objective of generating resources to cover its activities whilst not endangering the future existence of the charity. The Pre-school relies on fees from some parents to cover that part of its operating costs not covered by funding from local authorities and other organisations. The financial policy of the charity is to maintain a cushion of reserves so that, if unexpected adverse circumstances occur, the Preschool can continue to provide sessions for children. Once this reserve reaches the level deemed sufficient by the trustees, then the Pre-school’s fees are set at a level to approximately break-even each year between its incoming and outgoing resources.

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

The Pre-school has reviewed the fees to be charged during the coming year, especially for those parents on low incomes. When conducting this review, the Pre-school has referred to the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee-charging.

Structure, Governance and Management

Governing Document

The charity is governed by its Constitution adopted by the trustees on 18 February 2011. The Constitution is the Pre-school Learning Alliance Model Pre-school Constitution 2008. Jelly Tots Pre-school was registered as a charity by the Charity Commission on 1 April 2011.

The charity has two classes of membership, comprising Family Membership and Affiliate Membership. The trustees of the charity are drawn from both classes of membership. The committee of trustees can comprise a minimum of five members and a maximum of twelve members, plus a further three members can be co-opted onto the committee.

The charity has three Officers who are members of the committee of trustees. The officers are a Chair, a Secretary and a Treasurer.

Appointment of trustees

The initial trustees of the charity were appointed from Family Members with children attending the Pre-school. New trustees are elected at each Annual General Meeting, which is held during the autumn term of each school year. All Family Members are encouraged to nominate themselves as potential trustees.

Appointment of Treasurer

During the year, Sean Murray, a Chartered Accountant, has been appointed as Treasurer.

Annual General Meeting

The charity held its sixth Annual General Meeting on Thursday 28 November 2018 at the Southbourne Community Centre, Eastcote. The Chair gave an initial presentation to the meeting and then the management team explained the operation of the Pre-school to the assembled parents, and answered any questions.

Risk Management

The charity’s major risk factor is that there is a reduction in the number of children attending the sessions, and therefore a reduction in fees received, either from fee-paying parents or funding organisations.

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

Internal risks are minimised by control procedures for the authorisation of external payments and require all cheques to be signed by two out of the three authorised cheque signatories approved by the trustees.

Organisation

The trustees, who meet formally when required, control the governance and finances of the charity and advise the managers of the Pre-school. The managers of the Pre-school make the day-to-day decisions about the organisation of the daily Pre-school sessions. The managers of the Pre-school are in daily contact with those trustees who are often Family Members of the charity. The Chair of the charity, who is in regular contact with both the trustees and the managers of the Pre-school, exercises an oversight on the Pre-school managers, especially on financial matters.

Related parties

Both managers of the Pre-school are trustees of the charity. During the 2019/20 year the Secretary of the charity provided administrative financial services to the Pre-school. All three trustees receive a salary for their work for the Pre-school but do not receive any remuneration for being a trustee of the charity.

Financial Review – Sean Murray

The funding for the Pre-school comes from parental fees, local government funding and donations. In addition, the Pre-school took funding from the HM Treasury Job Retention Scheme during the lockdown imposed by the government due to COVID-19. The Pre-school had an operating surplus of £6,546 for the year ended 31 August 2020 compared to an operating deficit of £1,506 for the previous year.

The Pre-school continues to benefit from the Government scheme to relieve small organisations of the cost of Employers National Insurance contributions.

The fees charged to parents have not increased from September 2020.

The Pre-school had reserves of £23,494 at 31 August 2020. These reserves are retained by the charity to cover unexpected events. The trustees consider that the charity should have reserves in the region of £25,000 as part of its risk-averse reserves policy. The trustees are investigating ways that additional funding can be obtained by the charity to bring the reserves back to the £25,000 figure.

The Pre-school staff occasionally organise small fundraising activities such as book club sales, which contribute towards the cost of end of term parties for the children.

Investment policy

Surplus bank funds are held in a bank deposit account paying a commercial rate of interest.

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

Reserves policy

The reserves policy of the charity is to maintain free reserves so that the Pre-school can continue to provide the contracted service to parents if buffeted by unexpected events. The charity considers that reserves of £25,000 should be sufficient to maintain the Pre-school sessions in these circumstances.

The charity operates a prudent policy for income recognition and fees are only included in incoming resources when they have been received.

Plans for future periods

The charity will continue to hold sessions in the Community Centre premises. These premises provide a pleasant environment for the children and excellent Pre-school facilities so admired and needed by the local community.

The trustees and the management team continue to seek additional funding, such as donations, for the Pre-school to strengthen the financial resources of the charity.

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

Trustees’ responsibilities in relation to the financial statements

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards. The law applicable to charities in England and Wales 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 charity as at the balance sheet date and of the income and expenditure of the charity for that financial year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. The trustees 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.

Approved by the trustees on 30 November 2020 and signed on their behalf by:

Mrs Tracey Holder Secretary

9

JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS Independent examiner's report to the trustees of Jelly Tots Pre-school

I report on the accounts of Jelly Tots Pre-school for the year ended 31 August 2020, which are set out on pages 11 to 17.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's 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.

It is my responsibility to:

Basis of independent examiner's statement

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 the 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:

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached, have been met.

Richard Garner BSc

2 Vernon Walk, Tadworth

30 November 2020

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2020

Note
Income
Income from donations
2
Income from charitable activities
3
Investment income
4
Other Income Received
5
Total income
Expenditure
Expenditure on charitable activities
6
Expenditure on governance
7
Total expenditure
Net income (expenditure)
Total funds at start of period
Total funds at period end		 General
Total year
to 31
Total year
to 31
Fund
August 2020
August 2019
£
£
£
-
-
2,086
73,212
73,212
84,447
8
8
12
5,017
5,017
-
78,237
78,237
86,545
71,530
71,530
87,693
161
161
358
71,691
71,691
88,051
6,546
6,546
(1,506)
16,948
16,948
18,454
23,494
23,494
16,948

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 13 to 17 form part of these financial statements.

11

JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

BALANCE SHEET

AS AT 31 AUGUST 2020

FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Cash at bank and in hand
Debtors
13
CURRENT LIABILITIES
Creditors: Amounts falling due
within one year
14
NET CURRENT ASSETS
NET ASSETS
THE FUNDS OF THE CHARITY:
Unrestricted funds
15
TOTAL CHARITY FUNDS		 31 August 2020
31 August 2019
£
£
-
-
23,552
16,566
-
382
16,948
56
-
23,494
16,948
23,494
16,948
23,494
16,948
23,494
16,948

The financial statements were approved by the trustees on 30 November 2020 and signed on their behalf by:

Mrs Anne Lee Chair of Trustees

The notes on pages 13 to 17 form part of these financial statements.

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

1. Accounting policies

Basis of accounting

The financial statements have been prepared on the basis of the historic cost convention with items recognised at cost or transaction value unless otherwise stated, in accordance with:

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure has involved following Accounting and Reporting by Charities and preparing the financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014.

The charity constitutes a public benefit entity as defined by FRS 102.

Income

Income is included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. Income from donations is included when receivable. Income from charitable activities is included when earned. Investment income is included when receivable.

Expenditure

Expenditure is recognised in the year in which it is incurred and includes attributable VAT that cannot be recovered. Expenditure includes those costs that can be allocated directly to each activity. Expenditure on charitable activities includes those costs incurred by the charity in the delivery of its charitable activities.

Expenditure on governance includes those costs associated with meeting the constitutional and statutory requirements of the charity.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life, which in all cases is estimated at three years. Items of equipment are only capitalised when the purchase price exceeds £1,000.

Fund accounting

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

Cash flow statement

The charity has taken advantage of the exemption not to prepare a cash flow statement on the grounds that it is a small reporting entity.

Current assets and liabilities

Current assets and liabilities are accounted for on the following basis;

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

Cash at bank and in hand

The charity’s bank balances include short notice deposit accounts.

VAT

The charity is not registered for Value Added Tax (VAT). In these financial statements, where applicable, expenditure is shown inclusive of VAT.

Basic Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

2. Income from donations

2. Income from donations
Donations
Gift Aid		 General
Total year
to 31
Total year
to 31
Fund
August 2020
August 2019
£
£
£
-
-
2,086
-
-
-
-
-
2,086

3. Income from charitable activities

Fees
4. Investment income
Bank interest		 Total year
Total year
General
to 31
to 31
Fund
August 2020
August 2019
£
£
£
73,212
73,212
84,447
General
Total year
to 31
Total year
to 31
Fund
August 2020
August 2019
£
£
£
8
8
12

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

5. Other Income Received

5. Other Income Received
General
Total year
to 31
Total year
to 31
Fund
August 2020
August 2019
£
£
£
HMT Job Retention (Furlough) Scheme
5,017
5,017
-
6. Expenditure on charitable activities
General
Total year
to 31
Total year
to 31
Fund
August 2020
August 2019
£
£
£
Salaries
8
57,950
57,950
70,610
Employer pension contributions
8
900
900
1,058
Staff training
303
303
379
Insurance
678
678
557
Telephone and bank charges
-
-
50
Hire of hall
9,828
9,828
12,137
Consumables
1,279
1,279
1,701
Equipment
111
111
366
Computers and internet
479
479
223
Depreciation
-
-
612
71,530
71,530
87,693
7. Expenditure on governance
General
Total year
to 31
Total year
to 31
Fund
August 2020
August 2019
£
£
£
Subscriptions
161
161
358
8. Staff costs
Total year
to 31
Total year
to 31
August 2020
August 2019
£
£
Salaries
57,950
70,610
Employer pension contributions
900
1,058
58,850
71,668
The average number of employees during the year were as follows:
Year
to 31
Year
to 31
August 2020
August 2019
Number
Number
Manager
2
1
Deputy Manager
1
1
Assistant Manager
1
-
Pre-school Assistants
5
6
Payroll Manager
1
-
9
8		 General
Fund
£
5,017		 Total year
to 31
Total year
to 31
August 2020
August 2019
£
£
5,017
-
General
Fund
£
57,950
900
303
678
-
9,828
1,279
111
479
-		 Total year
to 31
Total year
to 31
August 2020
August 2019
£
£
57,950
70,610
900
1,058
303
379
678
557
-
50
9,828
12,137
1,279
1,701
111
366
479
223
-
612
71,530 71,530
87,693
General
Fund
£
161		 Total year
to 31
Total year
to 31
August 2020
August 2019
£
£
161
358
Total year
to 31
Total year
to 31
August 2020
August 2019
£
£
57,950
70,610
900
1,058
58,850
71,668
9
8

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

9. Key management personnel, trustee remuneration and related party transactions

The key management personnel of the charity are the trustees. No members of the committee received any remuneration for their work as trustees during the year (2019: £NIL).

The following Pre-school salaries were paid to trustees whilst serving on the committee: Mrs C Williams (Manager) – £6,920 (2019: £13,492) Mrs T J Holder (Financial Assistant) – £1,939 (2019: £1,063). Ms A McKeever (Pre-school Assistant) – £nil (2019: £6,020).

10. Net income

Net income for the year is stated after charging depreciation of nil (2019: £612).

11. Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable activities.

12. Fixed assets: Tangible assets
Computer and play
equipment
Cost:
At 1 September
Additions
Disposals
At 31 August
Depreciation:
At 1 September
Charge for year
Disposals
At 31 August
Net book value:
At 1 September
At 31 August		 2020
£
1,840
-
-		 2019
£
1,840
-
-
1,840 1,840
1,840
-
-		 1,228
612
-
1,840 1,840
-
-		 612
-

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JELLY TOTS PRE-SCHOOL NOTES TO THE FINANCIAL STATEMENTS

13. Debtors: Amounts falling due within one year

Security deposit
Payroll and other taxes		 2020
£
-
-
-		 2019
£
100
282
382

14. Creditors: Amounts falling due within one year

HMRC Creditor
15. Movement in funds
Unrestricted Funds:
General Fund		 £
1 September
2019
£		 2020
£
58
58
£
£
Income Expenditure
£
£		 2019
£
-
-
£
31 August
2020
£
23,494
16,948 78,237
(61,691)

17