Trustees’ Report and
Financial Statements
for the Year Ended 31 August 2023
for The Aldershot Garrison Pre-School Settings
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The Aldershot Garrison Pre-School Settings
Contents of the Financial Statements for the Year Ended 31 August 2023
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Page
Trustees' Report 1 to 8
Report of the Independent Auditors 9 to 12
Statement of Financial Activities 13
Statement of Financial Position 14
Statement of Cash Flows 15
Notes to the Statement of Cash Flows 16
Notes to the Financial Statements 17 to 25
Detailed Statement of Financial Activities 26 to 27
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The Aldershot Garrison Pre-School Settings
Trustees' Report for the Year Ended 31 August 2023
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2023. The trustees have adopted the provisions of 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 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objectives of the charity as set out in the company's articles of association are to:
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provide non-public day nursery facilities and non-publicly funded early years education for children under five years of age of service personnel and qualifying civilian staff;
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provide breakfast and after school childcare for children of primary school age of service personnel and qualifying civilian staff; and
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enhance the development and education of children primarily under the statutory school age by working in partnership with parents to understand and provide for the needs of their children.
Children aged 2, 3 and 4 years are able to access free early years education through government funding.
For the purposes of this document service personnel shall mean serving uniformed personnel of the armed forces of the Crown and qualifying civilians shall mean personnel who are wholly or mainly engaged in activities which directly support the serving personnel of the Aldershot Garrison.
The objectives are achieved through the operation of 1 nursery and 3 pre-schools settings in the vicinity of the Aldershot Garrison. One pre-school was closed down at the end of July 2023 as it was not cost effective.
We will achieve the charity's objectives by working closely with the Chief Executive and individual settings managers to maintain stringent Human Resource practices to ensure that we comply across the board with all local government standards and standards set by Ofsted. By achieving these targets, we will ensure that our military families are provided with outstanding nursery care at an affordable rate which competes strongly with the local market.
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The Aldershot Garrison Pre-School Settings
Trustees' Report for the Year Ended 31 August 2023
OBJECTIVES AND ACTIVITIES
Significant activities, achievement and performance
The Chief Executive Julie Mounfield has been in post almost 3 years. The past year has seen significant changes across all four settings.
Quetta Park was closed in July 2023 due to the low level of children attending and the charity losing a significant amount of money over the past few years. The Building was closed and all equipment was moved to the other 3 settings.
A new manager and deputy manager was appointed at Clocktower Pre-school in August 2023. There were two Ofsted visits due to significant events. These have now been satisfactorily resolved. Clocktower had a new roof put on and outside fencing fitted which was done and fully funded by the military.
Queen Mary's Nursery has had a new Manager and Deputy Manager employed, there have been significant changes made and our numbers are increasing with more full-time all year round children. We currently have a waiting list but are struggling to recruit full-time all year round staff.
The Baby Unit has been refurbished. The general refurbishment was done and covered by ASPIRE (contractor responsible for maintaining military properties) but extras and upgrades were completed with a cost of £14.5k to the charity. This is a wonderful enhancement to the building.
Toye Box is at capacity with a waiting list of children. The staff have created a sensory room which has been a wonderful enhancement to the setting and for all our children. The staff and children were fundraising for a defibrillator and went on BFBS radio to promote this, a local building developer heard about the sponsored walk and donated one for free.
The settings numbers of children were as follows:
Clocktower (CT) Sept 22: 57 children July 23: 83 children
Queen Mary's Nursery (QMN) Sept 22: 69 children July 23: 67 children
Quetta Park (QP) Sept 22: 9 children July 23: 20 children
ToyeBox Pre-school (TB) Sept 22: 91 children July 23: 94 children
The percentage of children at the period end whose parents are military are as follows for each of the settings. QMN: 76% (2022: 72%)
TB: 84% (2022: 81%) QP: 42% (2022: 51%) CT: 81% (2022: 74%)
Many changes have been put in place from September 22 to August 2023: -The Chief Executive has continued to use Peninsula HR company and they have been a brilliant asset to each of the managers and we now have access to Croner-i who are affiliated with Peninsula; they produce the majority of the setting policies and information that we require. All managers continue to use BrightHR. This facility is used a lot for HR, employment advice and H&S advice.
-Policies are written and updated by the Chief Executive on a regular basis.
-The Garrison Fire Safety Officer has been to visit each of the settings to ensure that we are compliant. These visits have highlighted some minor concerns and we now have a book to complete daily and monthly checks, with the safety officer visiting monthly.
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The Aldershot Garrison Pre-School Settings
Trustees' Report for the Year Ended 31 August 2023
OBJECTIVES AND ACTIVITIES
-Our staff recognition scheme continues to be well received and staff do appreciate 3 hours off work for free if staff have been nominated for going above and beyond in their role. This is voted by peer nominations.
-We offer paid annual leave on staff birthdays, once staff have completed their probation period.
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We have also introduced a staff shopping half day at Christmas as recognition for hard work throughout the year. Staff also receive a Christmas voucher from the Trustees to thank all staff.
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As an incentive to all our staff to continue with Continuous Professional Development (CPD) if they complete 5 hours of Noodle Now Courses online they will receive 3 hours TOIL as recognition.
-All managers and deputies who regularly work at computers can now receive a corporate eye test voucher.
-The staff handbook is updated each year, all staff must sign and date to acknowledge they understand.
-All staff contracts continuously reviewed with a 6 month probation period and 8 weeks' notice period on resignation.
-Garrison Standing Order and Business Continuity plan written and published with Aldershot Garrison Headquarters
-Introduced a menopause policy
-Introduced a fertility workplace pledge
-We continue to offer the Employee Assistance programme - free for all staff to use, this is to support them professionally or personally. This is a perk for staff and is completely confidential.
-Continued with our quarterly advertising in the Garrison magazine, all managers write articles each term.
-Increased social media presence, this is updated daily and has helped build the reputation of the charity.
-Website is continually being reviewed and updated.
-Managers are going on BFBS radio bi-monthly to promote their settings.
-First Aid training for all staff completed.
-Tighter/fairer processes have been introduced with regards to recruiting and interviewing.
-We no longer use agency staff, we have advertised for 'bank' staff instead to help us reduce agency costs.
-Each setting is responsible for organising their own fundraising, this includes sponsored walks, photographer, Christmas jumper day, etc. The settings have done very well with this and have been able to use these funds to buy equipment for their setting.
-Regular managers meetings continue to ensure our managers feel valued and supported.
-Annual performance reviews and bi-monthly meetings continues for all staff, this is audited by the Chief Executive.
-Trustees agreed to reward all staff with a £30 voucher for Christmas to say thank you, this was very well received by all staff.
-The trustees agreed that staff would receive a payrise in line with the national living wage from April 2023.
-Introduced 50% Staff discount for Childcare based on the days the staff attend. Calculates to 10% per working day - 1 day per week - 10%
2 days per week - 20%
3 days per week - 30% 4 days per week - 40%
5 days per week - 50%
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The Aldershot Garrison Pre-School Settings
Trustees' Report for the Year Ended 31 August 2023
OBJECTIVES AND ACTIVITIES
Delivering public benefit
The charity provides public benefit through the provision and support of day care and early years education, in accordance with Ofsted regulations and standards, for children under 5 years of age, of serving uniformed members of HM forces and qualifying civilian staff employed in support of Aldershot Garrison. This is done in order to support and give confidence to parents by delivering high quality and totally reliable day care and early years education service. Military personnel are required to serve in operational circumstances at short notice and for prolonged periods and the services undertaken by the charity allows personnel to execute their duties. As a result, the charity provides support to their dependants and develops and maintains morale and community cohesion.
The trustees have paid due regard to the Charity Commission of England and Wales guidance on public benefit when deciding what activities the charity should undertake.
FINANCIAL REVIEW
Financial position
Gross incoming resources for the year amounted to £1,306,095 (2022: £1,031,345), including £1,287,304 (2022: £1,010,249) received in fees and Early Years Funding across the four settings.
Expenditure in the year amounted to £1,149,465 (2022: £962,334) of which £958,496 (2022: £807,657) related to staff salaries, pension and employers NIC.
The main outgoings are staff costs that relate directly to the provision of childcare and early years education. Staff costs represent 83% (2022: 84%) of total costs. The charity occurs minimal administration costs and again in this period, did not incur any premises costs. There is a standing order with the Garrison for continued use of the buildings free of charge with relation to rent, rates, utilities and maintenance. The trustees have continued to ensure that all settings are fitted with modern furnishings and play aids that challenge and stimulate children's learning and development.
The net retained funds at the year-end were £739,840 (2022: £588,684), with a total of £307,650 (2022: £315,704) held in the designated fund representing the Rathbones portfolio in line with the reserve policy.
Following the introduction of the Chief Executive, subsequent costs savings have been made and the level of children increased at the settings. Results have improved and reserves rebuilt. The Trustees aim going forward are of making a small surplus.
Principal sources of income
Local authority Early Years Education Grants account for 58% (2022: 64%) of all pre-school income. Only parents of the children that do not qualify for grants for those attending in excess of the funded hours are charged fees.
At Queen Marys Nursery, which cares for children aged between 3 months and pre-school age on a full time day care basis, the Early Years Education Grant accounts for 29% (2022: 43%) of income. Research shows that fees charged to parents are significantly lower than those charged by private nurseries in the local area and lower than nurseries in other garrison areas and therefore continue to offer value for money to parents.
At the discretion of the trustees, fees can be waived on the grounds of welfare needs.
Investment policy and performance
Investment activities are managed in line with the requirements of the Trustee Act 2000. The trustees have appointed Rathbones Plc as Investment Manager. The charity's investment policy is a low to medium-risk approach for the growth of the portfolio of investments. The Investment Manager has total discretion concerning which investments are bought or sold within the risk profile set by the trustees.
The investment portfolio is seen as a long-term investment. As at 31 August 2023 the portfolio was valued at £307,650 (2022: £315,704) with a total realised and unrealised loss of £5,474 (2022: £34,487) on the portfolio. The charity also received £8,041 (2022: £6,880) of investment income from the fund during the year.
Reserves policy
The Trustees maintain a level of reserves equal to the value of the Rathbones Investment Fund. The level of reserves equates to 3 months average monthly operating costs and is considered satisfactory by the Trustees.
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The Aldershot Garrison Pre-School Settings
Trustees' Report for the Year Ended 31 August 2023
PLANS FOR FUTURE PERIODS
We are looking to increase numbers in the baby unit at QMN. There is a waiting list but are struggling to recruit full-time qualified staff. This is consistent with issues of recruitment across the childcare sector.
We would like to consider the introduction of branded uniforms for the children
The plan going forward is to improve results by continuing efficiency gains and to maintain, and increase where possible, the level of children at settings, in order to achieve a small surplus.
Also to reduce our level of debtors. We now have an app for parents to use so they can see their bill on their phone and have improved our credit control procedures.
The aim is to turn the charity into a successful business and to use monies made to invest in the staff with fair wages, suitable training, and adequate support etc and to ensure our buildings are above standard with exciting, stimulating resources to enhance all the children who attend and to ensure we can adequately meet their need in accordance with the charity's objectives as set out in its articles of association.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The organisation is a limited company, limited by guarantee and holding charitable status.
The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
Recruitment and appointment trustees
The directors of the company as defined by company law are also the charity's trustees for the purposes of charity law and under the company's Articles are known as the trustees and are referred to as trustees only throughout these accounts.
The trustees of the company are found from the officers filing relevant posts on the staff of HQ Aldershot Garrison, along with trustee representation from parents and staff.
Under the requirements of the Articles of Association the trustees must comprise the following:
a) at least one member of the Garrison; b) at least one parent trustee; and
c) such other individuals as are co-opted by the trustees.
We are introducing the following to ensure suitable candidates are given responsibilities for the running of the nursery settings:
-Personal Bio -Interview by Chair/s -Taken to trustee committee for approval -DBS checks -EY2 forms -References -Trustee Guides (Charity Commission guidance TOR)
In the event of the company being wound up, trustees are required to contribute an amount not greater than £10. The trustees who served during the year and up to the date of this report, are set out on page 7.
All trustees give their time voluntarily and received no benefits from the charity during the year for performance of their duties as trustees.
Decision making
The Chief Executive has overall financial authority and meets with the trustees once a term. The running of the nurseries has been delegated to the managers, with support and guidance from the Chief Executive.
The current Chief Executive appointed in October 2020, is Julie Mounfield.
Trustees are responsible for setting the pay of Key Management Personnel.
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The Aldershot Garrison Pre-School Settings
Trustees' Report for the Year Ended 31 August 2023
STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management
The trustees have conducted a review of the major risks to which the charity is exposed and where appropriate, systems or procedures have been established to mitigate the risks the charity faces. All staff members are required to comply with written policies that are common to all settings. Copies of policies are available to all parents. Policies are regularly reviewed to ensure that they reflect the latest legislation/guidance and current child care practices. Decisions on matters falling outside these policies are referred by supervisors to the Chief Executive and if necessary to the trustees. The Chief Executive meets regularly with the Nursery and Pre-Schools Managers where policies, problems, training and plans are discussed. These meetings also give the opportunity to identify and permeate best practice.
Written policies include:
Absence Policy Admissions Policy Babysitting/Childminding Policy Behaviour Management Biting Policy Complaints Procedure Confidentiality Policy Debt Policy Electronic and Telephonic Communications Policy Emergency Threat procedure Equality, Diversity and Inclusion Policy Equipment and Resources Policy Food and Drink Policy General Data Protection Policy Health and Safety Policy Illness and Exclusion Policy Lost Child Policy Medication Policy Nappy Changing Policy Non-Collection of Children Policy One to One Policy Parental Involvement Policy Physical Handling Policy Rest and Sleep Policy Safeguarding Children Policy Settling In Policy Smoking Policy Snow Closure Staff Conduct and Code of Practice Policy Social Networking Policy Special Educational Needs/Disability Policy Staffing and Employment Policy Staff Absence Staff Code of Conduct Student Placement Policy Sun Safety Policy Whistle Blowing Policy
Ofsted regulation
All settings are subject to inspection by Ofsted. The latest reports can be viewed at www.ofsted.gov.uk/reports. The Chief Executive and Settings Managers have established good working relationships with Ofsted, and the departments at Hampshire County Council and Hart and Rushmoor Borough Council responsible for Early Years Education, child care provision, Early Years support staff, local children's centres and children's social care.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
07916241 (England and Wales)
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The Aldershot Garrison Pre-School Settings
Trustees' Report for the Year Ended 31 August 2023
Registered Charity number 1146542
Registered office
27 Middle Hill Aldershot Hampshire GU11 1PL
Trustees
K Bayliss - (appointed 22/11/18) D A Betts - (appointed 27/11/20) G P Bell (appointed 11/01/23) L V Brown - (appointed 05/10/20 - resigned 15/09/22) C M Cuccio (appointed 19/01/21 - resigned 15/09/22) J A Gaskin (appointed 11/01/23) N D Mcconnell (appointed 19/03/20 - resigned 01/03/22) D Nicholl (appointed 01/03/22) S L Stephenson {previously Magee} (appointed 19/03/20) G B Silk (appointed 11/01/23 - resigned 06/11/2023) B P White (appointed 22/01/21- resigned 11/01/23)
Auditors
Butt Miller Chartered Accountants and Statutory Auditor 1 Minster Court Tuscam Way Camberley Surrey GU15 3YY
Bankers
Holt's Military Banking 200 Fowler Avenue Fowler Business Park Farnborough Hampshire GU14 7JP
Advisers
Investment Managers
Rathbones Investment Management Port of Liverpool Building Pier Head Liverpool L3 1NW
HR, employment law, and health & safety consultants Peninsula Business Services The Peninsula Victoria Place Manchester M4 4FB
The charity also uses the following working names: Toye Box Early Years Centre Quetta Park Pre-School Queen Mary Nursery Clocktower House Pre-School
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The Aldershot Garrison Pre-School Settings
Trustees' Report for the Year Ended 31 August 2023
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of The Aldershot Garrison Pre-School Settings for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 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 those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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 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.
In so far as the trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 26 April 2024 and signed on its behalf by:
G P Bell - Trustee
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Report of the Independent Auditors to the Members of The Aldershot Garrison Pre-School Settings
Opinion
We have audited the financial statements of The Aldershot Garrison Pre-School Settings (the 'charitable company') for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 21 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Trustees' Report has been prepared in accordance with applicable legal requirements.
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Report of the Independent Auditors to the Members of The Aldershot Garrison Pre-School Settings
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the trustees' Report.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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Report of the Independent Auditors to the Members of The Aldershot Garrison Pre-School Settings
Our responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
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The nature of the industry and sector the charity is in, its control environment and business performance including the
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design of the charities policies and staff remuneration;
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Results of our enquiries of management about their own identification and assessment of the risks of irregularities;
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Any matters we identified having obtained and reviewed the charity's documentation of their policies and procedures
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relating to:
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identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of
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noncompliance;
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detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
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the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
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The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial
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statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
Our procedures to respond to risks identified included the following:
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Enquiries of management and staff including concerning actual and potential litigation and claims and any instances of
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non-compliance with laws;
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Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
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misstatement due to fraud;
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Obtained an understanding of provisions and held discussions with management to understand the basis of recognition
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or non-recognition of provisions; and
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In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; checking internal controls are being followed are as per its policies and assessing suitability; assessing the judgements made in making accounting estimates; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
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Report of the Independent Auditors to the Members of The Aldershot Garrison Pre-School Settings
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Alison Elliott BFP ACA FCCA MAAT (Senior Statutory Auditor) for and on behalf of Butt Miller Chartered Accountants and Statutory Auditor 1 Minster Court Tuscam Way Camberley Surrey GU15 3YY
2 May 2024
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The Aldershot Garrison Pre-School Settings
Statement of Financial Activities for the Year Ended 31 August 2023
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 3 Charitable activities 6 Charitable activities Other trading activities 4 Investment income 5 Total EXPENDITURE ON Raising funds 7 Charitable activities 8 Charitable activities Total NET INCOME Other recognised gains/(losses) Gains/(losses) on revaluation of fixed assets Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2023 Unrestricted funds £ 1,950 1,289,977 1,999 12,168 1,306,094 2,580 1,146,884 1,149,464 156,630 (5,474) 151,156 588,684 739,840 |
2022 Total funds £ 1,282 1,019,605 3,196 7,262 1,031,345 2,877 959,457 962,334 69,011 (34,487) 34,524 554,160 588,684 |
|---|---|---|
The notes form part of these financial statements
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The Aldershot Garrison Pre-School Settings
Statement of Financial Position 31 August 2023
| Notes FIXED ASSETS Tangible assets 14 Investments 15 CURRENT ASSETS Debtors 16 Cash at bank and in hand CREDITORS Amounts falling due within one year 17 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 19 Unrestricted funds TOTAL FUNDS |
2023 Unrestricted funds £ 25,018 307,650 332,668 20,559 416,566 437,125 (29,953) 407,172 739,840 739,840 739,840 739,840 |
2022 Total funds £ 39,474 315,704 355,178 52,775 237,950 290,725 (57,219) 233,506 588,684 588,684 588,684 588,684 |
|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 26 April 2024 and were signed on its behalf by:
G P Bell - Trustee
D Nicholl - Trustee
The notes form part of these financial statements
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The Aldershot Garrison Pre-School Settings
Statement of Cash Flows for the Year Ended 31 August 2023
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Purchase of fixed asset investments Sale of fixed asset investments Interest received Share portfolio income Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2023 £ 164,560 164,560 (692) (63,807) 66,386 4,128 8,041 14,056 178,616 237,950 416,566 |
2022 £ 74,641 74,641 (8,872) (33,828) 77,705 382 6,880 42,267 116,908 121,042 237,950 |
|---|---|---|
The notes form part of these financial statements
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The Aldershot Garrison Pre-School Settings
Notes to the Statement of Cash Flows for the Year Ended 31 August 2023
| 1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2023 2022 £ £ Net income for the reporting period (as per the Statement of Financial Activities) 156,630 69,011 Adjustments for: Depreciation charges 12,383 10,987 Loss on disposal of fixed assets 2,766 - Interest received (4,128) (382) Share portfolio income (8,041) (6,880) Decrease/(increase) in debtors 32,216 (27,894) (Decrease)/increase in creditors (27,266) 29,799 |
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2023 2022 £ £ Net income for the reporting period (as per the Statement of Financial Activities) 156,630 69,011 Adjustments for: Depreciation charges 12,383 10,987 Loss on disposal of fixed assets 2,766 - Interest received (4,128) (382) Share portfolio income (8,041) (6,880) Decrease/(increase) in debtors 32,216 (27,894) (Decrease)/increase in creditors (27,266) 29,799 |
|---|---|
| Net cash provided by operations | 164,560 74,641 |
| 2. ANALYSIS OF CHANGES IN NET FUNDS At 1.9.22 £ Net cash Cash at bank and in hand 237,950 |
Cash flow At 31.8.23 £ £ 178,616 416,566 |
| 237,950 | 178,616 416,566 |
| Total 237,950 |
178,616 416,566 |
The notes form part of these financial statements
Page 16
The Aldershot Garrison Pre-School Settings
Notes to the Financial Statements for the Year Ended 31 August 2023
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
The Aldershot Garrison Pre-school Settings is a private limited company, limited by guarantee, and registered in England and Wales. The address of the registered office is set out in the Trustees report.
The presentation currency of the financial statements is the Pound Sterling (£).
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Amounts received in advance relating to the following year are deferred until the criteria for income recognition are met.
Donations and legacies are accounted for when when the charity has unconditional entitlement to the resources and are credited to unrestricted funds unless directed by the donor to do otherwise.
Investment income is included in the accounts when receivable. Investment gains and losses includes any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year using the valuation provided by the Investment Manager (Rathbones Plc).
Income from the government and other grants, whether 'capital' grants or 'revenue' grants is recognised when any performance conditions attached to the grants have been met.
The value of any services provided by volunteers are not incorporated into these financial statements. Further details of any contributions can be found in the trustees report.
Donated services and facilities are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.
Expenditure
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and is inclusive of VAT. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Property improvements - 10% on cost Fixtures and fittings - 33.33% on cost
Fixed asset investments
Listed investments are included at closing market value at the statement of financial position date. Any gain or loss during the year is taken to the Statement of Financial Activities.
Taxation
The charity is exempt from corporation tax on its charitable activities to the extent that income or gains are applied exclusively to charitable purposes.
continued...
Page 17
The Aldershot Garrison Pre-School Settings
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
1. ACCOUNTING POLICIES - continued
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
The designated fund represents unrestricted funds held equal to the value of the Rathbones portfolio in Listed Investments totalling £307,650 (2022: £315,704).
Pension
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Operating leases
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
Provisions
Provisions (i.e. liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Going concern
The charitable activities are entirely dependent on continuing pre-school fees and government funding. As a consequence, the going concern basis is dependent on the future flow of these funding streams. The trustees are satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements. The trustees are not aware of any material uncertainties about the charity's ability to continue as a going concern.
2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Judgements in applying accounting policies
In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
In preparing these financial statements, the trustees have made the following critical judgements:
To determine whether donated services and facilities can be reasonably measured and estimated so as to be recognised in the financial statements as described further in note 18.
Key sources of estimation uncertainties
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are no key estimation uncertainties.
continued...
Page 18
The Aldershot Garrison Pre-School Settings
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
3. DONATIONS AND LEGACIES
Donations
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----- Start of picture text -----
|||
|---|---|
|2023|2022|
|£|£|
|1,950|1,282|
----- End of picture text -----
Included above are the donations, free of charge, of a new cooker and a defibrillator from the military and a local organisation totalling £1,900.
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|||||
|---|---|---|---|
|4.|OTHER TRADING ACTIVITIES|
|2023|2022|
|£|£|
|Photo/video/book commission|1,036|1,132|
|Income from fund raising|963|1,864|
|Sundry income|-|200|
|1,999|3,196|
|5.|INVESTMENT INCOME|
|2023|2022|
|£|£|
|Investment income|8,041|6,880|
|Bank interest receivable|4,127|382|
|12,168|7,262|
|6.|INCOME FROM CHARITABLE ACTIVITIES|
|2023|2022|
|Activity|£|£|
|EYE funding and fees|Charitable activities|1,287,304|1,010,249|
|Grants|Charitable activities|2,673|9,356|
|1,289,977|1,019,605|
----- End of picture text -----
Income from government grants included within EYE funding and fees comprise of grants made by local authorities to fund early years education. The amount received in the year totalled £750,019 (2022: £643,095) Other grants comprise amounts received from the military and the local authority.
continued...
Page 19
The Aldershot Garrison Pre-School Settings
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
7. RAISING FUNDS
| Investment management costs Management charges 8. CHARITABLE ACTIVITIES COSTS Direct Costs £ Charitable activities 1,033,706 9. SUPPORT COSTS Management £ Charitable activities 29,778 Other £ Charitable activities 48,072 10. NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): Depreciation - owned assets Deficit on disposal of fixed assets Other operating leases 11. AUDITORS' REMUNERATION Fees payable to the charity's auditors for the preparation and audit of the charity's statutory financial statements. |
Direct Costs £ 1,033,706 Management £ 29,778 Other £ 48,072 |
Direct Costs £ 1,033,706 Management £ 29,778 Other £ 48,072 |
2023 £ 2,580 Support costs (see note 9) £ 113,178 Finance £ 2,549 Governance costs £ 8,280 2023 £ 12,383 2,766 - |
2023 £ 2,580 Support costs (see note 9) £ 113,178 Finance £ 2,549 Governance costs £ 8,280 2023 £ 12,383 2,766 - |
2023 £ 2,580 Support costs (see note 9) £ 113,178 Finance £ 2,549 Governance costs £ 8,280 2023 £ 12,383 2,766 - |
2023 £ 2,580 Support costs (see note 9) £ 113,178 Finance £ 2,549 Governance costs £ 8,280 2023 £ 12,383 2,766 - |
2022 £ 2,877 Totals £ 1,146,884 Information technology £ 24,499 Totals £ 113,178 2022 £ 10,987 - 1,955 |
2022 £ 2,877 Totals £ 1,146,884 Information technology £ 24,499 Totals £ 113,178 2022 £ 10,987 - 1,955 |
2022 £ 2,877 Totals £ 1,146,884 Information technology £ 24,499 Totals £ 113,178 2022 £ 10,987 - 1,955 |
2022 £ 2,877 Totals £ 1,146,884 Information technology £ 24,499 Totals £ 113,178 2022 £ 10,987 - 1,955 |
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||||||
| £ | £ | |||||||||
| 8,280 | 7,560 | |||||||||
continued...
Page 20
The Aldershot Garrison Pre-School Settings
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
12. TRUSTEES' REMUNERATION AND BENEFITS
The trustees have not been paid any remuneration or received any other benefits in relation to their work for the charity during the period.
Any trustee with children attending a setting are charged on the same basis as other parents.
There is a policy, that for trustees that have served for longer than 1 year, they would receive a £50 gift on leaving, subject to trustees' agreement.
Trustees' expenses
During the year, a total of 2 trustees were reimbursed for expenses incurred for the charity totalling £128. (2022: 1 Trustee totalling £1,173)
13. STAFF COSTS
| Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: Employees |
2023 £ 901,943 43,305 13,248 958,496 2023 65 |
2022 £ 759,642 37,190 10,825 807,657 2022 54 |
|---|---|---|
No employees received emoluments in excess of £60,000.
14. TANGIBLE FIXED ASSETS
| Property improvements £ COST At 1 September 2022 85,675 Additions - Disposals (12,542) At 31 August 2023 73,133 DEPRECIATION At 1 September 2022 54,629 Charge for year 8,567 Eliminated on disposal (9,881) At 31 August 2023 53,315 NET BOOK VALUE At 31 August 2023 19,818 At 31 August 2022 31,046 |
Fixtures and fittings £ 172,481 692 (29,236) 143,937 164,053 3,816 (29,132) 138,737 5,200 8,428 |
Totals £ 258,156 692 (41,778) 217,070 218,682 12,383 (39,013) 192,052 25,018 39,474 |
|---|---|---|
continued...
Page 21
The Aldershot Garrison Pre-School Settings
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
15. FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | |
|---|---|
| MARKET VALUE At 1 September 2022 Additions Disposals Revaluations Management fees |
Listed investments £ 315,704 63,807 (49,273) (20,008) (2,580) |
| At 31 August 2023 | 307,650 |
| NET BOOK VALUE At 31 August 2023 |
307,650 |
| At 31 August 2022 | 315,704 |
The investments represent holdings in the investment portfolio managed by Rathbone Investment Management.
The historical cost of the above investments was £292,256 (2022: £298,285).
16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors Other debtors 17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Social security and other taxes Other creditors Accruals and deferred income |
2023 £ 18,805 1,754 20,559 2023 £ 6,663 10,382 4,628 8,280 29,953 |
2022 £ 52,775 - 52,775 2022 £ 3,557 19,272 6,699 27,691 57,219 |
|---|---|---|
Deferred income comprises amounts received in advance of the following year or where conditions of agreements have not yet been wholly met. It is included within accruals and deferred income.
| Deferred income movement | 2023 | 2022 |
|---|---|---|
| £ | £ | |
| Balance at beginning of the period | 20,131 | - |
| Amount released to income during the period | (20,131) | - |
| Amount deferred during the period | - | 20,131 |
| Balance at end of the period | - | 20,131 |
continued...
Page 22
The Aldershot Garrison Pre-School Settings
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
18. LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
| Within one year Between one and five years |
2023 £ 1,152 - 1,152 |
2022 £ 1,536 1,152 2,688 |
|---|---|---|
During the period there was a memorandum of understanding with the Garrison to let the charity use the buildings the settings operate from, rent and maintenance free. Following the period end, a Garrison standing order has now been established.
This also includes utilities plus general major refurbishment work as part of the building's maintenance cycle as and when it arises. During the period, refurbishments and major work were completed in two settings. On the basis that the value of the use of these facilities cannot be reliably determined, no income and equivalent expense have been recognised in the Statement of Financial Activities.
19. MOVEMENT IN FUNDS
| Unrestricted funds General fund Designated fund TOTAL FUNDS |
At 1.9.22 £ 272,980 315,704 588,684 588,684 |
Net movement in funds £ 159,210 (8,054) 151,156 151,156 |
At 31.8.23 £ 432,190 307,650 739,840 739,840 |
|---|---|---|---|
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Designated fund TOTAL FUNDS |
Incoming resources £ 1,306,094 - 1,306,094 1,306,094 |
Resources expended £ (1,146,884) (2,580) (1,149,464) (1,149,464) |
Gains and losses £ - (5,474) (5,474) (5,474) |
Movement in funds £ 159,210 (8,054) 151,156 151,156 |
|---|---|---|---|---|
continued...
Page 23
The Aldershot Garrison Pre-School Settings
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
19. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Designated fund TOTAL FUNDS |
At 1.9.21 £ 124,092 430,068 554,160 554,160 |
Net movement in funds £ 71,888 (37,364) 34,524 34,524 |
Transfers between funds £ 77,000 (77,000) - - |
At 31.8.22 £ 272,980 315,704 588,684 588,684 |
|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Designated fund TOTAL FUNDS |
Incoming resources £ 1,031,345 - 1,031,345 1,031,345 |
Resources expended £ (959,457) (2,877) (962,334) (962,334) |
Gains and losses £ - (34,487) (34,487) (34,487) |
Movement in funds £ 71,888 (37,364) 34,524 34,524 |
|---|---|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund Designated fund TOTAL FUNDS |
At 1.9.21 £ 124,092 430,068 554,160 554,160 |
Net movement in funds £ 231,098 (45,418) 185,680 185,680 |
Transfers between funds £ 77,000 (77,000) - - |
At 31.8.23 £ 432,190 307,650 739,840 739,840 |
|---|---|---|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Designated fund TOTAL FUNDS |
Incoming resources £ 2,337,439 - 2,337,439 2,337,439 |
Resources expended £ (2,106,341) (5,457) (2,111,798) (2,111,798) |
Gains and losses £ - (39,961) (39,961) (39,961) |
Movement in funds £ 231,098 (45,418) 185,680 185,680 |
|---|---|---|---|---|
continued...
Page 24
The Aldershot Garrison Pre-School Settings
Notes to the Financial Statements - continued for the Year Ended 31 August 2023
20. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 August 2023.
21. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
22. ULTIMATE CONTROLLING PARTY
The company is limited by guarantee and has no controlling party. The liability of each member is limited to £10 in the event of it being wound up.
Page 25
The Aldershot Garrison Pre-School Settings
Detailed Statement of Financial Activities for the Year Ended 31 August 2023
| INCOME AND ENDOWMENTS Donations and legacies Donations Other trading activities Photo/video/book commission Income from fund raising Sundry income Investment income Investment income Bank interest receivable Charitable activities EYE funding and fees Grants Total incoming resources EXPENDITURE Investment management costs Management charges Charitable activities Wages Social security Pensions Catering Play aids Children's stationery Water centres Bad debts Staff gifts and functions Children's activities Staff training Sundries Donations Support costs Management Ofsted registration Carried forward |
2023 £ 1,950 1,036 963 - 1,999 8,041 4,127 12,168 1,287,304 2,673 1,289,977 1,306,094 2,580 901,943 43,305 13,248 50,919 5,429 783 - - 2,844 8,617 5,747 871 - 1,033,706 325 325 |
2022 £ 1,282 1,132 1,864 200 3,196 6,880 382 7,262 1,010,249 9,356 1,019,605 1,031,345 2,877 759,642 37,190 10,825 36,020 12,193 1,282 55 3,587 2,379 10,466 2,925 223 65 876,852 325 325 |
|---|---|---|
This page does not form part of the statutory financial statements
Page 26
The Aldershot Garrison Pre-School Settings
Detailed Statement of Financial Activities for the Year Ended 31 August 2023
| Management Brought forward Accountancy fees Legal and professional fees Advertising Insurance Finance Bank charges Information technology Internet Computer and copier Telephone Other Postage and stationery DBS checks and recruitment costs Uniforms Health and safety Cleaning and hygiene Settings consumables and maintenance Travel and subsistence Depreciation of improvements to property Depreciation of fixtures and fittings Loss on disposal of tangible fixed assets Governance costs Auditors' remuneration Total resources expended Net income |
2023 £ 325 14,513 7,763 959 6,218 29,778 2,549 1,442 18,763 4,294 24,499 34 4,209 1,720 2,350 3,608 19,427 1,575 8,567 3,816 2,766 48,072 8,280 1,149,464 156,630 |
2022 £ 325 17,625 7,181 198 5,572 30,901 1,893 528 14,503 3,695 18,726 1,273 1,838 387 438 1,317 4,381 2,904 8,568 2,419 - 23,525 7,560 962,334 69,011 |
|---|---|---|
This page does not form part of the statutory financial statements
Page 27