Company registration number: 7818917 Charity registration number: 1144776
## Hawkhurst Pre School Ltd
(A company limited by guarantee)
Annual Report and Financial Statements for the Year Ended 31 August 2021
Manningtons 8 High Street Heathfield East Sussex TN22 8LS
## **Hawkhurst Pre School Ltd**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 3|
|Independent Examiner's Report|4|
|Statement of Financial Activities|5|
|Balance Sheet|6|
|Notes to the Financial Statements|7 to 13|
## **Hawkhurst Pre School Ltd**
## **Reference and Administrative Details**
**Trustees** Mrs K Paton Mrs Jodi Hacker **Principal Office** Fowlers Park Rye Road Hawkhurst Kent TN18 4JJ **Registered Office** Fowlers Park Rye Road Hawkhurst Kent TN18 4JJ **Company Registration Number** 7818917 **Charity Registration Number** 1144776 **Independent Examiner** Manningtons 8 High Street Heathfield East Sussex TN22 8LS
Page 1
## **Hawkhurst Pre School Ltd**
## **Trustees' Report**
The trustees present their report and the financial statements for the year ended 31 August 2020. The trustees, who are also the directors of Hawkhurst Pre School Ltd for the purposes of the company law and who served during the year and up to the date of this report are set out on page 1.
## **Structure, governance and management**
The overall management of the Pre School shall vest in the individual members of its management committee who are the company directors and charity trustees of the Pre School. The trustees will appoint a setting manager who will be responsible for the day to day running of the Pre School and management of staff.
The committee shall consist of:
A Chair, a Treasurer and a Secretary and not less than 2 or more that 9 elected committee members.
## **Aims and Objectives**
The objectives of the Pre School (“the Objects”) are to enhance the development and education of the children primarily under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups and by:
- Offering appropriate play, education and care facilities and training courses, together with the rights of
- 1) parents to take responsibility for and to 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;
- Encouraging the study of the needs of such children and their families and promoting public interest in
- 2) and recognition of such needs;
- 3) Instigating and adhering to and furthering the aims and objects of the Pre-School Learning Alliance.
## **Public Benefit**
Due to the locality of our pre-school and the limit on the number of places we can offer our services are aimed at families that live in and around the ‘Hawkhurst’ area. We provide a safe and stimulating environment to local children to start theirs ‘Early Years’ education and work closely with the local primary school to ensure that the transition for the children is as smooth as possible.
The charity holds a Memorandum and Articles of Association, adopted from the ‘Preschool Learning Alliance’ 2002 – 2009 issue.
The trustees are elected at the AGM from ‘Family Membership’, affiliate members and staff from the local primary school as per our governing document. At present the pre-school does not hold a policy for inducting or training trustees but will consider implementing this in the future.
The day to management of the preschool is carried out by a manager who is appointed by the management committee. The manager is provided with an annual budget and is able to make reasonable day to day spending decision. Any financial decisions over and above what is reasonable are presented at committee meetings and put to a majority vote. In addition all recruitment is carried out by the committees and the setting manager.
The charity does not currently hold a policy on reserves. However we do set out an annual budget and are in the process of reserving funds for future expansion. Our target has remained at approximately £50,000. As at 31 August 2021 £48,000 was held in a Lloyds plc deposit account. Also as at 31 August 2021 we also held £35,000 in a Lloyd plc current for general business purposes, general reserves and contingencies.
## **Financial review**
The trustees continue to record and budget for the charities progress to prevent deficits and intend to use any surplus funds to improve and maintain the Pre School for the benefit of both children and staff.
Page 2
## **Hawkhurst Pre School Ltd**
## **Trustees' Report**
## **Statement of trustees’ responsibilities**
The trustees (who are also directors of Hawkhurst Pre School Ltd for the purpose of company law) are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply then consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statement; and
- prepare the financial statements on the 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 which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Coronavirus Epidemic**
From September 2021 we continued to be affected by the Coronavirus and it had an effect on children numbers within school. We had a lower number of children on our registers and those attending did not take up additional hour during the first half of the year. As the year progressed numbers of children attending started to increase.
Our saving account has funds for
- Redundancy payments for all staff.
- Money towards an additional classroom.
- As we own the building we operate from we keep money to cover repairs and general upkeep.
The annual report was approved by the trustees of the charity on 14 July 2022 and signed on its behalf by:
......................................... Mrs K Paton Trustee
Page 3
## **Hawkhurst Pre School Ltd**
## **Independent Examiner's Report to the trustees of Hawkhurst Pre School Ltd**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2021 which are set out on pages 5 to 13.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of Hawkhurst Pre School Ltd (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 Hawkhurst Pre School Ltd 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 2011 (‘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 matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of Hawkhurst Pre School Ltd 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.
...................................... A E J Staples FCA Manningtons 8 High Street Heathfield East Sussex TN22 8LS
14 July 2022
Page 4
## **Hawkhurst Pre School Ltd**
## **Statement of Financial Activities for the Year Ended 31 August 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Investment income
5
Total income
**Expenditure on:**
Charitable activities
6
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
13
**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Investment income
5
Total income
**Expenditure on:**
Charitable activities
6
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
13|**Unrestricted**
**£**
1,861
92,894
5
94,760
(95,792)
(95,792)
(1,032)
(1,032)
89,559
88,527
**Unrestricted**
**funds**
**£**
5,536
80,342
24
85,902
(97,163)
(97,163)
(11,261)
(11,261)
100,820
89,559|**Unrestricted**
**£**
1,861
92,894
5||**Restricted**
**Tesco**
**Groundworks**
**£**
-
-
-||**Total**
**2021**
**£**
1,861
92,894
5|
|---|---|---|---|---|---|---|
|||94,760||-||94,760|
|||(95,792)||-||(95,792)|
|||(95,792)||-||(95,792)|
|||(1,032)||-||(1,032)|
|||(1,032)
89,559||-
2,070||(1,032)
91,629|
|||88,527||2,070||90,597|
|||||**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
2,070
2,070||**Total**
**2020**
**£**
5,536
80,342
24|
|||||||85,902|
|||||||(97,163)|
|||||||(97,163)|
|||||||(11,261)|
|||||||(11,261)
102,890|
|||||||91,629|
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.
The notes on pages 7 to 13 form an integral part of these financial statements. Page 5
## **Hawkhurst Pre School Ltd**
## **(Registration number: 7818917) Balance Sheet as at 31 August 2021**
|**Note**
**Fixed assets**
Tangible assets
10
**Current assets**
Cash at bank and in hand
11
**Creditors: Amounts falling due within one year**
12
**Net current assets**
**Net assets**
**Funds of the charity:**
**Restricted**
Tesco Groundworks
**Unrestricted income funds**
Unrestricted
**Total funds**
13|**2021**
**£**
9,731
82,420
(1,554)
80,866
90,597
2,070
88,527
90,597|**2020**
**£**
10,277
83,224
(1,872)|
|---|---|---|
|||81,352|
|||91,629|
|||2,070
89,559|
|||91,629|
For the financial year ending 31 August 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors 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.
The financial statements on pages 5 to 13 were approved by the trustees, and authorised for issue on 14 July 2022 and signed on their behalf by:
......................................... Mrs K Paton Trustee
......................................... Mrs Jodi Hacker Trustee
The notes on pages 7 to 13 form an integral part of these financial statements. Page 6
## **Hawkhurst Pre School Ltd**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## **1 Charity status**
The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.
The address of its registered office is: Fowlers Park Rye Road Hawkhurst Kent TN18 4JJ
The principal place of business is: Fowlers Park Rye Road Hawkhurst Kent TN18 4JJ
## **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). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
Hawkhurst Pre School Ltd 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.
Page 7
## **Hawkhurst Pre School Ltd**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## _**Donations and legacies**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
## _**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.
## **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.
## _**Grant provisions**_
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Government grants**
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Page 8
## **Hawkhurst Pre School Ltd**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## **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 £50.00 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:
|**Asset class**|**Depreciation method and rate**|
|---|---|
|Land and Buildings|Market Value > cost therefore no
depreciation is provided|
|Plant and Machinery|25% Straight Line|
|Computer Equipment|3 years straight line|
## **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.
## **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.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **3 Income from donations and legacies**
|Donations and legacies;
Donations from individuals
Grants, including capital grants;
Government grants
**Total for 2021**
**Total for 2020**|**Unrestricted**
**funds**
**General**
**£**
100
1,761
1,861
5,536|**Total**
**funds**
**£**
100
1,761|
|---|---|---|
|||1,861|
|||5,536|
Page 9
## **Hawkhurst Pre School Ltd**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## **4 Income from charitable activities**
|Fees and Supplies
KCC Fees
**Total for 2021**
**Total for 2020**
**5**
**Investment income**
Interest receivable and similar income;
Interest receivable on bank deposits
**Total for 2021**
**Total for 2020**|**Unrestricted**
**funds**
**General**
**£**
4,188
80,835
7,871
92,894
80,342
**Unrestricted**
**funds**
**General**
**£**
5
5
24|**Total**
**funds**
**£**
4,188
80,835
7,871|
|---|---|---|
|||92,894|
|||80,342|
|||**Total**
**funds**
**£**
5|
|||5|
|||24|
Page 10
## **Hawkhurst Pre School Ltd**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## **6 Expenditure on charitable activities**
|**Note**
KCC Collaboration 18/19 (17/18)
Staff costs
Allocated support costs
7
Governance costs
7
**Total for 2021**
**Total for 2020**|**Unrestricted**
**funds**
**General**
**£**
7,389
69,905
17,867
631
95,792
97,163|**Total**
**funds**
**£**
7,389
69,905
17,867
631|
|---|---|---|
|||95,792|
|||97,163|
**Total expenditure £**
In addition to the expenditure analysed above, there are also governance costs of £631 (2020 - £972) which relate directly to charitable activities. See note 7 for further details.
## **7 Analysis of governance and support costs**
## **Governance costs**
|Independent examiner fees
Examination of the financial statements
**Total for 2021**
**Total for 2020**
**8**
**Staff costs**
The aggregate payroll costs were as follows:
**Staff costs during the year were:**
Wages and salaries|**Unrestricted**
**funds**
**General**
**£**
631
631
972
**2021**
**£**
69,905|**Total**
**funds**
**£**
631|
|---|---|---|
|||631|
|||972|
|||**2020**
**£**
70,931|
Page 11
## **Hawkhurst Pre School Ltd**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
No employee received emoluments of more than £60,000 during the year.
## **9 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **10 Tangible fixed assets**
|**Land and**
**buildings**
**£**
**Cost**
At 1 September 2020
8,540
At 31 August 2021
8,540
**Depreciation**
At 1 September 2020
-
Charge for the year
-
At 31 August 2021
-
**Net book value**
At 31 August 2021
8,540
At 31 August 2020
8,540
**11 Cash and cash equivalents**
Cash at bank
**12 Creditors: amounts falling due within one year**
Other creditors
Accruals|**Furniture and**
**equipment**
**£**
11,049
11,049
9,759
323
10,082
967
1,290|**Furniture and**
**equipment**
**£**
11,049
11,049
9,759
323
10,082
967
1,290|**Computer**
**equipment**
**£**
671||**Total**
**£**
20,260
20,260
9,983
546
10,529
9,731
10,277
**2020**
**£**
83,224|
|---|---|---|---|---|---|
||11,049||671|||
||9,759
323||224
223|||
||10,082||447|||
||967||224|||
||1,290||447|||
||||**2021**
**£**
82,420
**2021**
**£**
618
936
1,554|||
||||||**2020**
**£**
936
936|
||||||1,872|
Page 12
## **Hawkhurst Pre School Ltd**
## **Notes to the Financial Statements for the Year Ended 31 August 2021**
## **13 Funds**
|**13 Funds**|||||
|---|---|---|---|---|
|**Unrestricted**
General
**Restricted**- Tesco Groundworks
**Total funds**
**Unrestricted**
General
**Restricted**
**Total funds**|**Balance at 1**
**September**
**2020**
**£**
89,559
2,070
91,629
**Balance at 1**
**September**
**2019**
**£**
100,820
2,070
102,890|**Incoming**
**resources**
**£**
94,760
-
94,760
**Incoming**
**resources**
**£**
85,902
-
85,902|**Resources**
**expended**
**£**
(95,792)
-
(95,792)
**Resources**
**expended**
**£**
(97,163)
-
(97,163)|**Balance at 31**
**August 2021**
**£**
88,527
2,070|
|||||90,597|
|||||**Balance at 31**
**August 2020**
**£**
89,559
2,070|
|||||91,629|
The specific purposes for which the funds are to be applied are as follows:
Tesco Groundworks - recorded as Restricted Fund as per Terms and Conditions
## **14 Analysis of net assets between funds**
## **Unrestricted**
||**Unrestricted**|||
|---|---|---|---|
|Tangible fixed assets
Current assets
Current liabilities
Total net assets|**General**
**£**
9,731
80,350
(1,554)
88,527|**Restricted**
**Tesco**
**Groundworks**
**£**
-
2,070
-
2,070|**Total funds**
**£**
9,731
82,420
(1,554)|
||||90,597|
Page 13