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2020-08-31-accounts

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 AUGUST 2020

REGISTERED CHARITY NUMBER 1154415

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

INDEX

Page
Charity information 1
Trustees’annual report 2
Independentexaminer’s report 4
Statement of financial activities 5
Balance sheet 6
Accounting policies 7
Notes to the financial statements 9

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

BIRDHAM PRE-SCHOOL

CHARITY INFORMATION

Trustees

Miss Josephine Henry Chair from Aug 21 (appointed December 2019) Mr Haydn Tarr Chair from Dec 19 to Aug 21 (appointed May 2019, resigned August 2021) Mr Thomas Collins Chair to Dec 19 (resigned December 2019) Mr Daniel Penfold Treasurer from January 21 (appointed January 2021) Mrs Hannah Minett Treasurer from Dec 19 to Sep 20 (resigned September 2020) Mrs Catherine Jakob Treasurer to Dec 19 (resigned December 2019) Mrs Julie Smith (resigned December 2019) Mrs Louise Turner (appointed December 2019, resigned July 2020) Mrs Sarah Weller (appointed March 2021)

Principal office

Early Years Lodge Crooked Lane Birdham West Sussex PO20 7HB

Registered charity number

1154415

Independent examiner

Geoffrey Frost, Bsc(Hons) FCA Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY

Page 1

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES’ ANNUAL REPORT

The Trustees present their report and the unaudited financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

STRUCTURE GOVERNANCE AND MANAGEMENT

Birdham Pre-school is governed by the Pre-School Learning Alliance Model CIO Constitution adopted in October 2013.

The trustees (as outlined on page one) are appointed by election at the annual general meeting or to fill vacancies as necessary.

OBJECTIVES AND ACTIVITIES

The charity’s objectives are the development and education of children and young people in particular by:

The Pre-school believes in the value of play as a means of learning and as such, aims to help children develop socially, emotionally, physically, cognitively and creatively within a language rich, happy and secure environment.

It therefore strives to:

Birdham Pre-school provides these aims by operating a safe and secure setting with good qualified staff. Birdham Pre-school is open to all children, it is open from 8am to 4.30pm, five days a week term time only. We provide extra activities for the children such as French lessons, Zumba and sing and sign within the school day. All children can have a hot meal at lunch time if parents wish to purchase it. We take 2, 3 and 4 year old government funding as well as 30 hour funding.

The trustees believe by performing these activities the charity fulfils its obligation to deliver public benefit.

In determining how the charity should pursue its objectives, the trustees have had regard to the Charity Commission's guidance on public benefit.

ACHIEVEMENTS AND PERFORMANCE

The new charity was registered on 31 October 2013 and began formally trading as Birdham Pre-school from the 31 July 2014.

The Pre-school has had a change of management. During the year the nursery was run by Jade Hawkins as the Childcare manager and Laura Pearson as Business Manager. Working alongside each other, they bring fresh ideas and continue to strengthen the Pre-school.

The Pre-school has strong links with Birdham Primary School and we meet on a termly basis with the Headmaster. We also continue to have strong links with other feeder schools in the area.

The Pre-school employs a strong staff team and we are maintaining our levels of quality and care, the Pre-school invest time into the staff by encouraging regular training and attending courses. This ensures that the staff are up-to-date in all areas.

We currently employ 11 members of staff. Staff turnover remains low so that strengthens both the relationships between staff, children, parents and carers.

Page 2

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

TRUSTEES’ ANNUAL REPORT

We continue to accept 30 hour funding, and this has been working well. The Pre-school has been very busy for the last financial year. The breakfast club for Birdham School has also been very popular as has the recently launched after-school club we also offer.

The outside continues to really benefit the children as they are able to use this throughout the year. The children now have more room to play and this encourages a greater depth of learning.

FINANCIAL REVIEW

Outgoing resources totalled £188,741 (2019: £233,463). Total incoming resources for the year ended 31 August 2020 was £140,320 (2019: £204,204).

As at 31 August 2020 the charity’s free reserves totalled £50,550 (2019: £68,043). The trustees’ reserves policy is to keep reserves at a greater level of £10,000.

There are no restrictions on the charity’s power to invest. The investment strategy is agreed between the trustees and is regularly reviewed.

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

IMPACT OF CORONAVIRUS (COVID-19)

In March 2020 the World Health Organisation declared the Coronavirus (COVID-19) outbreak a pandemic. Like many countries the UK government implemented restrictions in an attempt to slow the spread of the virus. Restrictions included the closing of early years settings, except for children of key workers, from March 2020 and allowance to open again from June 2020. To support early years providers the government continued to provide dedicated schools grant based on numbers from February 2020 and allowed access to the newly established job retention scheme to meet employment costs.

At the time of writing this report restrictions had begun to be eased, however in the year the closure of primary and secondary schools led to a general fall in income with some parents not having their child attend nursery though conversely has led to some additional sessions. In order to match resources to need the pre school continues to made use of the government’s job retention scheme.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees and signed on their behalf.

30 September 2021

Miss Josephine Henry Chair

Date

Page 3

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

INDEPENDENT EXAMINER’S REPORT

Independent Examiner's Report to the Trustees of Birdham Pre-School

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2020 which are set out on pages 5 to 13.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

Geoffrey Frost, Bsc (Hons) FCA Blue Spire Limited 30 September 2021 Date

Cawley Priory South Pallant Chichester West Sussex PO19 1SY

Page 4

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

STATEMENT OF FINANCIAL ACTIVITIES

INCOMING AND ENDOWMENTS FROM:
Donations and legacies
1
Charitable activities
2
Other trading activities
3
Investments
4
Other
5
Total income and endowments
EXPENDITURE ON:
Raising funds
6
Charitable Activities
7
Total expenditure
Net income/expenditure
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
15
Total funds carried forward
15
Unrestricted
Funds
£
198
132,005
207
136
7,774
140,320
-
188,741
188,741
(48,421)
-
(48,421)
178,468
130,047
Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2020
Total
Funds
£
198
132,005
207
136
7,774
140,320
-
188,741
188,741
(48,421)
-
(48,421)
178,468
130,047
2019
Total
Funds
£
-
203,800
333
71
-
204,204
120
233,343
233,463
(29,259)
-
(29,259)
207,727
178,468

All of the charity’s activities were acquired during the above financial period.

The charity has no recognised gains or losses other than those dealt with in the statement of financial activities.

Page 5

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

BALANCE SHEET AS AT 31 AUGUST 2020

Note
FIXED ASSETS
Tangible assets
11
Total fixed assets
CURRENT ASSETS
Debtors
12
Cash at hand and in bank
Total
CURRENT LIABILITIES
Creditors: amounts falling due within one year
13
Net current assets/(liabilities)
Net assets/(liabilities)
THE FUNDS OF THE CHARITY
Restricted funds
Unrestricted funds
15
Total charity funds
15
The notes on pages 9 to 13 form part of these accounts.
Approved by the trustees and signed on their behalf.
£
£
79,496
79,496
1,722
51,366
53,088
2,537
50,551
130,047
-
130,047
130,047
2020
£
£
110,425
110,425
3,493
68,258
71,751
3,708
68,043
178,468
-
178,468
178,468
2019
£
£
110,425
110,425
3,493
68,258
71,751
3,708
68,043
178,468
-
178,468
178,468
2019
178,468
-
178,468
178,468

Mr Daniel Penfold Treasurer Date 30 September 2021

Page 6

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

BIRDHAM PRE-SCHOOL

ACCOUNTING POLICIES

Scope and basis of the financial statements

Birdham Pre-School is a charity registered in England and Wales (reg no.1154415). The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are included in the trustees' report.

The charity constitutes a public benefit entity as defined by FRS 102. 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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016) , the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following expenditure headings:

● Charitable activities; these include wages and salaries costs (including payroll fees) and other support costs

Support and governance costs are those that assist the work of the charity but do not directly represent charitable activities. They are incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in the governance of the charity and primarily associated with the constitution and statutory requirements.

Tangible assets

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided on all fixed assets, at rates calculated to write off the cost of each asset on a systematic basis over its expected useful life as follows:

Children's play area over 5 years Building over the period of the lease Furniture and fixtures over 5 years Garden extension over the period of the lease

VAT

The charity is not registered for VAT and is unable to recover VAT incurred. On this basis costs are recorded inclusive of VAT within the SOFA.

Page 7

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

ACCOUNTING POLICIES

Debtors receivable and creditors payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand.

Taxation

The charity is considered to pass the tests set out in sections 521 to 536 Income Tax Act 2007 (ITA 2007), as such no income tax is payable on the charity's activities.

Fund accounting

Unrestricted income funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds, which are to be used in accordance with specific restrictions imposed by donors or raised by the charity for particular purposes. The cost of raising and administering such funds is charged against the specific fund. The aim and use of each restricted fund are set out in the notes to the financial statements.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Page 8

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

1. Donations and legacies

1. Donations and legacies
Donations
2. Charitable activities
Fees and Local Authority funding
3. Other trading activities
Fundraising
4. Investments
Bank deposit interest receivable
5. Other income
CJRS grants
Unrestricted
Funds
£
198
198
Unrestricted
Funds
£
132,005
132,005
Unrestricted
Funds
£
207
207
Unrestricted
Funds
£
136
136
Unrestricted
Funds
£
7,774
7,774
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
2020
Total
Funds
£
198
198
2020
Total
Funds
£
132,005
132,005
2020
Total
Funds
£
207
207
2020
Total
Funds
£
136
136
2020
Total
Funds
£
7,774
7,774
Unrestricted
Funds
£
-
-
Unrestricted
Funds
£
203,800
203,800
Unrestricted
Funds
£
333
333
Unrestricted
Funds
£
71
71
Unrestricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
2019
Total
Funds
£
-
-
2019
Total
Funds
£
203,800
203,800
2019
Total
Funds
£
333
333
2019
Total
Funds
£
71
71
2019
Total
Funds
£
-
-

Page 9

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

6. Raising Funds

Fundraising and donations
7. Charitable Activities
Unrestricted
Funds
£
-
-
Restricted
Funds
£
-
-
2020
Total
Funds
£
-
-
Unrestricted
Funds
£
120
120
Restricted
Funds
£
-
-
2019
Total
Funds
£
120
120
7. Charitable Activities
Wages and salaries costs
Rent and insurance
Depreciation
Support costs:
Accountancy fees
Repairs and Maintenance
Printing, postage and stationery
Toys and equipment
Subscriptions
Refreshments
Telephone
Sundries
Staff training
Staff welfare
Clothing
Cleaning
Recruitment
Advertising
Computer expenses
Governance costs:
Independent examiners fees
Unrestricted
Funds
£
126,614
8,703
30,929
1,418
1,257
267
3,396
-
3,982
1,669
712
1,521
-
16
-
2,622
140
4,295
1,200
188,741
Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2020
Total
Funds
£
126,614
8,703
30,929
1,418
1,257
267
3,396
-
3,982
1,669
712
1,521
-
16
-
2,622
140
4,295
1,200
188,741
Unrestricted
Funds
£
144,190
7,490
31,968
-
11,868
1,267
10,185
77
6,022
213
2,509
1,170
932
1,375
2,336
4,616
648
5,277
1,200
233,343
Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2019
Total
Funds
£
144,190
7,490
31,968
-
11,868
1,267
10,185
77
6,022
213
2,509
1,170
932
1,375
2,336
4,616
648
5,277
1,200
233,343

8. Independent examiners fees

8. Independent examiners fees
Examiner's fees - examination Unrestricted
Funds
£
1,200
1,200
Restricted
Funds
£
-
-
2020
Total
Funds
£
1,200
1,200
Unrestricted
Funds
£
1,200
1,200
Restricted
Funds
£
-
-
2019
Total
Funds
£
1,200
1,200

Page 10

BIRDHAM PRE-SCHOOL

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE FINANCIAL STATEMENTS

9. Staff Costs

9. Staff Costs
Gross wages
Empoyers' NIC
Pension
Termination
Agency staff
CJRS grants
The average number of employees, calculated on average headcount basis, was:
Charitable activities
2020
Total
Funds
£
116,885
3,322
694
-
5,713
(7,774)
126,614
2020
11
2019
Total
Funds
£
127,205
1,644
842
5,352
9,147
-
144,190
2019
12

There were no employees with emoluments (excluding employer pension costs) above £60,000 in this or the preceding year

During the year the charity's key management personnel received employee benefits totalling £56,673 (2019: £47,472).

No payments were made for the reimbursement of expenses to key management personnel in the year under review.

10. Related party transactions

During the year under review one trustee Julie Smith, received employee benefits totalling £3,337 (2019: £7,725) consisting of salary and employer national insurance contribution in relation to her employment as authorised by the board of trustees.

This payment was authorised under section 6(2)(b) the governing document.

There were no payments made in relation to reimbursing expenses to any of the trustees in the period under review.

There were no balances owed to the trustees at the balance sheet date.

11. Tangible assets

Cost
Brought forward
Additions
Depreciation
Brought forward
Charge in year
Net book value carried forward
Net book value brought forward
Children's
play area
£
5,200
-
5,200
5,200
5,200
-
-
Building
£
218,930
-
218,930
127,531
25,506
153,037
65,893
91,399
Furniture
and fixtures
1,413
-
1,413
377
283
660
753
1,036
Garden
extension
23,986
-
23,986
5,996
5,140
11,136
12,850
17,990
2020
Total
£
249,529
-
249,529
139,104
30,929
170,033
79,496
110,425
2019
Total
£
249,529
-
249,529
107,136
31,968
139,104
110,425
142,393

Page 11

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

BIRDHAM PRE-SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

12. Debtors

Trade debtors
Taxation and social security
13. Creditors
Accruals
Deferred income
Taxation and social security
Other creditors
Pensions payable
Unrestricted
Funds
£
-
1,722
1,722
Unrestricted
Funds
£
2,322
-
-
215
-
2,537
Restricted
Funds
£
-
-
-
Restricted
Funds
£
-
-
-
-
-
-
2020
Total
Funds
£
-
1,722
1,722
2020
Total
Funds
£
2,322
-
-
215
-
2,537
2019
Total
Funds
£
3,493
-
3,493
2019
Total
Funds
£
1,700
534
1,265
-
209
3,708

14. Deferred income

14. Deferred income
Fees received in advance Brought
forward
£
534
534
Released
in year
£
(534)
(534)
Deferred
in year
£
-
-
Carried
forward
£
-
-

15. Analysis of movement in funds

15. Analysis of movement in funds
Unrestricted funds
Designated funds
Fixed asset reserve
General Fund
Total unrestricted funds
Total funds
Unrestricted funds
Designated funds
Fixed asset reserve
General Fund
Total unrestricted funds
Total funds
Year ended 31 August 2020
Brought
forward
£
110,425
68,043
178,468
178,468
Incoming
Outgoing
resources
resources
Transfers
£
£
£
-
(30,929)
-
140,320
(157,812)
-
140,320
(188,741)
-
140,320
(188,741)
-
Year ended 31 August 2019
Carried
forward
£
79,496
50,551
130,047
130,047
Brought
forward
£
142,393
65,334
207,727
207,727
Incoming
resources
£
-
204,204
204,204
204,204
Outgoing
resources
£
(31,968)
(201,495)
(233,463)
(233,463)
Transfers
£
-
-
-
-
Carried
forward
£
110,425
68,043
178,468
178,468

Page 12

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

BIRDHAM PRE-SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

16. Lease commitments

16. Lease commitments
Total future minimum lease payments - building lease
not later that one year
later than one year and not later than five years
Total future minimum lease payments - printer lease
not later that one year
later than one year and not later than five years
2020
Total
Funds
£
3,500
5,250
8,750
2020
Total
Funds
£
851
1,135
1,986
2019
Total
Funds
£
3,500
8,750
12,250
2019
Total
Funds
£
851
1,986
2,837

19. Subsequent events - COVID-19

During the year and in the period since the year end the charity and society as a whole are having to contend with the impact of COVID-19 and the UK Government's measures to deal with the ongoing pandemic within the UK. Both COVID-19 and the Government's measures had a significant detrimental impact on the operations of the pre school with the trustees continuing to monitor future policy announcements which are beyond the charity's control may have a significant impact.

At the time of approving the financial statements the charity has no debt instruments, having made use of government provisions such as the job retention scheme (furlough) and has reserves in place to contend with the current and future uncertainties for the foreseeable future and therefore the trustees continue to adopt the going concern basis of accounting in preparing these financial statements.

Page 13