2nd Draft 10/10/23
Registered number 7922235
Little Elves Community Pre-school Ltd
Report and Accounts
31 August 2023
2nd Draft 10/10/23
Little Elves Community Pre-school Ltd
(a company limited by guarantee and not having a share capital) Report and accounts Contents
| Page | |
|---|---|
| Statutory information | 1 |
| Report of the Directors and Trustees | 2,3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance sheet | 6 |
| Notes to the Accounts | 7,8 |
2nd Draft 10/10/23
Little Elves Community Pre-school Ltd
(a company limited by guarantee and not having a share capital) Statutory Information
The following information forms part of the Report of the Directors and Trustees
The company's registered office is:
The Key Centre The Key Fleet Hampshire GU51 1HA Telephone 01252 625332
The company was incorporated on 24 January 2012, number 07922235. It is also a registered charity, number 1145920.
The following Committee members have served as Directors and Trustees during the year ended 31 August 2023
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Name Position Note
Lauren McNiven Chair
Leanne West Vice Chair & Secretary
Gary Spencer Treasurer Appointed 2 November 2022
Emma Spence
Emma Simpson
Peter Beacham Treasurer Resigned 2 November 2022
Isabella Dlugosz Secretary Resigned 2 November 2022
Rachel Dutoit Resigned 2 November 2022
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The independent examiner is:
Mr Brandon Yeadon FMAAT Cronulla Thursley Road Elstead GU8 6ED
The company's bankers are:
Co-operative Bank plc, PO Box 250, Skelmersdale, Cheshire, WN8 6WT
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2nd Draft 10/10/23
Little Elves Community Pre-school Ltd
(a company limited by guarantee and not having a share capital) Report of the Directors and Trustees
The directors, who are also trustees, have pleasure in submitting their report for the period. The directors who have served during the period are listed on the page 1, along with the other statutory information that forms part of the annual report. This report is to be presented at the forthcoming annual general meeting, planned to be held on 8th November 2023.
The Directors and Trustees of Little Elves community Pre-School Ltd have worked through the Charity Governance Code for smaller charities. The sub-committee, as appointed by Directors and Trustees, have worked through the entire document and have documented Little Elves community Pre-School Ltd.'s position to all the points raised by the code. At the AGM (Wednesday 18th November 2020), the Directors and Trustees raised one item at the meeting regarding the makeup of the board. This item was resolved by the meeting unanimously. Following the AGM on Wednesday 18th November 2020 at the Directors and Trustees committee meeting, the sub committees response to the Charity Governance Code for smaller charities was discussed and a motion was proposed and seconded. It was agreed by the board to implement the code and the responses. It was further agreed that the document would be reviewed annually to keep it up to date
Objects and organisation
The company was incorporated on 24 January 2012 to take over the operations and assets of the Little Elves Community Pre-School, an unincorporated charity which was established in 2002 and which was providing pre-school facilities from The Key Centre at Elvetham Heath, Fleet. This takeover was effected on 1 September 2012. The company has continued to provide those same pre-school activities with largely the same staff from the Key Centre.
The company has operated with the same constitution as the unincorporated charity, based on the standard model provided by the Pre-school Learning Alliance. The company aims to:
(a) Offer appropriate play, education and care facilities, family learning and extended hours groups, 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;
(b) Encourage the study of the needs of such children and their families and promote public interest in, and recognition of, such needs in local areas;
(c) Instigate, adhere to and further the aims of the Pre-school Learning Alliance.
The Committee, who are managing trustees and are elected at the annual general meeting, meet each month to oversee the company's affairs. Day-to-day management of the pre-school activities is delegated to the manager and her staff.
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2nd Draft 10/10/23
Little Elves Community Pre-school Ltd (a company limited by guarantee and not having a share capital) Report of the Directors and Trustees
Operations
The Pre-school continues to run five mornings and afternoon sessions each week during State school terms. Children join from age 2 years and 6 months, and Government funding is available (a) for 3- and 4- year olds and (b) also now for eligible 2-year olds prior to attending school. The Pre-school is registered for 52 children per session. The Pre-school, on average, takes up to 80 children on roll per year who attend for a variety of sessions, but we do have scope to increase that number in line with staff ratios and childrens ages attending.
The most recent OFSTED inspection on the 30th September 2022 rated the Pre-school as 'Good'.
The Pre-school uses two rooms at The Key Centre building under the terms of a lease runnning to 30 March 2036, with permitted use solely for use by children up to 5 years old and supervised by adults, and containing appropriate break clauses for lessor and the Pre-school. Provided that the Pre-school (a) maintains the relevant OFSTED inspection rating and thus funding from local education authority, and (b) attracts sufficient numbers of children, it has security of tenure.
Finances
The attached Statement of Financial Activities summaries the company's income and expenditure for the year and shows a surplus of £11,768 for the year. This is supplemented by more detailed analysis in the Notes to the Accounts. The surplus has been transferred to reserves.
| Net surplus for the year Aggregate reserves brought forward Aggregate reserves carried forward |
£ 11,768 212,412 224,180 |
|---|---|
The surplus compares with an equivalent surplus of £22,231 in the previous year.
Reserves
The Balance Sheet shows net assets of £224,180 compared with operating income of over £271,560 and expenditure of some £259,792. The Committee reviewed the policy on reserves in November 2022 and concluded that a minimum of £86,000 should be retained on unrestricted reserves, equivalent to approximately one term's expenditure and sufficient to cover potential redundancy costs. The Committee also agreed that this policy should be reviewed annually, or more often if necessary.
Public benefit
The Pre-school have considered the major risks to which the company is exposed, and the systems that have been established to mitigate these risks. Many of these risks are appropriately covered by insurance policies, and its policies are communicated to all staff, consultants and volunteers.
Risk assessment and management
The directors have considered the major risks to which the company is exposed, and the systems that have been established to mitigate these risks. Many of these risks are appropriately covered by the insurance policies, and its policies are communicated to all staff, consultants and volunteers.
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2nd Draft 10/10/23
Little Elves Community Pre-school Ltd
(a company limited by guarantee and not having a share capital) Report of the Directors and Trustees
Directors' responsibilites
Company law requires the directors to prepare annual accounts that give a true and fair view of the state of affairs of the company at the year end and of its financial activities during the period. These statements should comply with best practice and:
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(a) Select suitable accounting policies and apply them prudently;
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(b) Make judgements and estimates that are reasonable and prudent
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(c) Prepare accounts on the going concern basis unless it is inappropriate to presume that the company will continue in operation.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy the financial position of the company to enable them to ensure that the accounts comply with the Companies' Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Audit exemption
The company is entitled to exemption from audit for the year ended 31 August 2023 both under the Companies Act 2006 and the Charities Act 2011; but, as a charity, it is required to have independent scrutiny of its accounts. The directors have therefore taken advantage of audit exemption.
This report was approved by the board on 8 November 2023 and signed on its behalf.
Lauren McNiven, Chair Director
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2nd Draft 10/10/23
Little Elves Community Pre-school Ltd
(a company limited by guarantee and not having a share capital) Independent examiner's report to the directors and trustees
I report on the accounts of the Company for the year ended 31 August 2023, which are set out on the pages 6 to 9 attached.
Respective responsibilites of trustees and reporting accountants
The trustees (who are directors of the Company for the purposes of company law) are responsible for the preparation of accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the Charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
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(a) Examine the accounts under section 145 of the 2011 Act;
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(b) Follow the procedures laid down in the General Directions given by the Charity Commission
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under section 145 (5)(b) of the 2011 Act; and
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(c) State whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the General Directions. An independent examination includes a review of the Charity's accounting records and a comparison of the accounts presented with those records. It also includes consideration of any unusual disclosures in the accounts, and seeking explanations from you as trustees concerning such matters. The procedures undertaken do not provide 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 above.
Independent examiner's statement
In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that in any material respects the arrangements (a) to keep accounting records in accordance with section 396 of the Companies Act 2006, and (b) to prepare accounts which accord with the accountings records, comply with accounting requirements of section 396 of the said Act and the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities, have not been met; or (c) to which, in my opinion, attention should be drawn to enable a proper understanding of the accounts to be reached.
Brandon Yeadon FMAAT Independent examiner Dated:
Cronulla Thursley Road, Elstead GU8 6ED
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2nd Draft 10/10/23
Little Elves Community Pre-school Ltd
(a company limited by guarantee and not having a share capital) Balance Sheet
as at 31 August 2023
| Notes Current assets Stock of uniforms Trade debtors Bank balances Deposit accounts Current accounts Fundraising accounts Petty cash Creditors: amounts falling due within one year Other taxes and social security Other creditors and accruals Net assets Funds Called up share capital 3 Unrestricted income funds 4 Total: Funds |
£ 4,430 - 162,054 55,003 3,873 60 225,420 - (1,091) |
2023 £ 224,329 224,329 - 224,329 224,329 |
£ 4,228 - 153,298 51,936 5,414 60 214,936 (148) (2,376) |
2022 £ 212,412 212,412 - 212,412 212,412 |
|---|---|---|---|---|
The Notes referred to above form part of these financial statements
For the financial period ended on 31 August 2023, the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ('the Act') relating to small companies. The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act.
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.
Lauren McNiven Chair and director Approved by the board on 10 October 2023
Gary Spencer Treasurer and director
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2nd Draft 10/10/23
Little Elves Community Pre-school Ltd (a company limited by guarantee and not having a share capital) Statement of Financial Activities for the year ended 31 August 2023
| Notes 2023 £ Incoming Resources Incoming resources from generated funds Fundraising activities 1,865 Bank interest 756 Incoming resources from charitable activities Early Years' grant from Hampshire County Council 213,575 Fees paid by parents 54,753 Sundry income 611 Total incoming resources 271,560 Resources Expended Cost of generating funds Fundraising and publicity 622 Costs in furtherance of charity objects 2 255,815 Independent accountant's fees 1,188 Trustee indemnity insurance 2,018 Total resources expended 259,643 Net incoming resources 11,917 Funds balance brought forward 212,412 Funds balance carried forward 224,329 |
2022 £ 2,665 199 198,013 52,285 1,529 254,691 622 229,005 1,188 1,645 232,460 22,231 190,181 212,412 |
|---|---|
The Notes referred to above form part of these financial statements
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2nd Draft 10/10/23
Little Elves Community Pre-school Ltd (a company limited by guarantee and not having a share capital) Notes to the Accounts for the year ended 31 August 2023
1 Accounting policies
General matters
The accounts (financial statements) 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 second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Going concern
The company's operations are based in The Key Centre using two rooms and storage facilities hired from Elvetham Heath Parish Council under the terms of a lease running to 30 March 2036, with permitted use solely for use by children up to 5 years old and supervised by adults, and containing appropriate break clauses for lessor and the Pre-school. Provided that the Pre-school (a) maintains the relevant OFSTED inspection rating and thus funding from local education authority, and (b) attracts sufficient numbers of children, it has security of tenure. Having regard to the recent 'Good' ratings at OFSTED inspections, the directors are satisfied that the accounts of the Company may be prepared on a 'going concern' basis.
Income and expenditure
Donations are accounted for when received. All income and expenditure in furtherance of the charity's objectives is recognised in the period to which it relates.
Depreciation
Fixed assets are capitalised subject to a de minimis of £1,000, provided they have an expected life in excess of one year. Fixed assets are depreciated over their estimated useful lives (generally 5 years) on the straight line basis.
Stocks
Stocks are valued at cost.
Taxation
As a charity, income is exempt from income and corporation taxes. Its activities are exempt from value added tax (VAT), and expenditure is therefore inclusive of applicable VAT.
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| Costs in furtherance of objectives Staff salaries and employer National Insurance Staff welfare, training and uniforms Staff pensions Premises rental Equipment, consumables and other service costs Administration Other costs |
2023 £ 187,022 3,679 4,686 32,908 21,445 6,075 - 255,815 |
2022 £ 171,508 5,089 4,666 33,183 8,983 5,446 130 229,005 |
|---|---|---|
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2nd Draft 10/10/23
Little Elves Community Pre-school Ltd (a company limited by guarantee and not having a share capital) Notes to the Accounts for the year ended 31 August 2023
3 Share capital
The company does not have share capital. The company has 7 members and their individual liabilty towards the company's debts is limited to £1 in the event of the company being wound up within 12 months of ceasing to be a member.
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| Movements on reserves General reserves Designated contingency reserve Unallocated funds Earmarked reserves |
Opening balance £ 70,000 120,181 190,181 190,181 |
Activities £ 22,231 22,231 22,231 |
Transfers £ 0 0 |
Closing balance £ 70,000 142,412 212,412 212,412 |
|---|---|---|---|---|
5 Contingent liabilties
The company had no contingent liabilities at 31 August 2023 (2022: none).
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