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2022-08-31-accounts

CHARITY REGISTRATION NUMBER: 1158113

Rainbow Pre-School & Extended Services Unaudited Financial Statements

For the year ended

31 August 2022

Rainbow Pre-School & Extended Services

Financial Statements

Year ended 31 August 2022

Pages
Trustees' annual report 1 to 4
Independent examiner's report to the trustees 5
Statement of financial activities 6
Statement of financial position 7
Statement of cash flows 8
Notes to the financial statements 9 to 16

Rainbow Pre-School & Extended Services

Trustees' Annual Report

Year ended 31 August 2022

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 August 2022.

Reference and administrative details

Registered charity name Rainbow Pre-School & Extended Services Charity registration number 1158113 Principal office The Nursery Building St Andrews Lower School Brunts Lane Biggleswade Bedfordshire SG18 0LY The trustees Peter Teuma (Chair) Debbie King (Treasurer) Julia Khan Helen Rae

Julia Khan is employed as the director of Rainbow Pre-School & Extended Services and is the person that any specific enquiries should be directed to, either at the above address or by direct email which is Juliakhan@rainbow-preschool.co.uk.

Independent examiner Shane Tharby FCA For and on behalf of Streets Chartered Accountants 3 Wellbrook Court Girton Cambridge CB3 0NA

Structure, governance and management

Structure

In October 2014 Rainbow Pre-School & Extended Services converted from an Unincorporated Charity to a Charitable Incorporated Organisation (CIO) and adopted the Charities Commission Model Constitution (Foundation).

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Rainbow Pre-School & Extended Services

Trustees' Annual Report (continued)

Year ended 31 August 2022

Structure, governance and management (continued)

Governance and management

The aims for the future regarding Trustees is to always have a proportion of parents of children who attend our setting, but in addition we will recruit externally for members who have specific skills that are required to broaden the overall knowledge and skill set required for a committee of Trustees.

Julia Khan is the Director of Rainbow Pre-School & Extended Services as a paid member of staff, with overall responsibility for the daily operations across both sites. Direct reportees are:

Hannah Adams the Head of Teaching and Child Development is a qualified Primary School Teacher and is responsible for the learning and development of all of the children in our care. Hannah line manages the PreSchool Managers from both east and west sites. The Pre-School Managers have overall responsibility for both pre-school and extended services sessions, the staffing structure therefore includes 2 deputy manager roles at both east and west, to cover breakfast and after school clubs. The Deputies report to the Managers. In addition, there is a Head of SEND who works across both sites and is responsible for children who have additional needs.

Recruitment and appointment of new trustees

Apart from the first charity trustees, every newly appointed trustee must be appointed for a term of two years by a resolution passed at a properly convened meeting of the charity trustees. New trustees may be recruited if an existing trustee stands down or if the committee feel that there is a need for a broader set of skills.

The recruitment exercise will consist of appropriate advertising including communication regarding any vacancies to all parents. Equal opportunity interviews will be carried out and the selection will take into account relevant experience and skills.

Trustees are not remunerated or receive any benefits for carrying out trustee duties.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Regulators

Rainbow Pre-School & Extended Services are registered with Ofsted; registration numbers are EY482746 and EY493048.

Policies

All policies in place are reviewed annually by the Pre-School Director and the Head of Rainbow Pre-School & Extended Services. In particular, the following policies:

Risk Management

Safeguarding Vulnerable Beneficiaries

Conflicts of Interest

Volunteer Management

Complaints Handling

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Rainbow Pre-School & Extended Services

Trustees' Annual Report (continued)

Year ended 31 August 2022

Objectives and activities

Rainbow Pre-School & Extended Services works for the public benefit having as its objectives the development and education of children and young people, in particular by operating as a Pre-School that nurtures amazing young minds through affordable and flexible early years education. Focusing specifically on:

Rainbow Pre-School & Extended Services operates in the town of Biggleswade, Bedfordshire, across 2 sites. The Head office is based at the West Site, Brunts Lane, Biggleswade and the 2nd site is Bantock Way, Biggleswade, both sites are within the grounds of St Andrews Lower School East and West. Rainbow is a PreSchool during term time (for children aged between 2 and 5 yrs old) and in addition offers a Breakfast Club, After School Club and School Holiday Club provision (children aged 2 to 9 yrs old). Both settings are open from 7.30am to 6pm for 50 weeks of the year.

Rainbow is a pre-school that nurtures amazing young minds through affordable and flexible early years education.

Achievements and performance

Charitable activities

We are happy to report this year that our main objectives have all been met.

Ofsted Inspection

Our west site is Ofsted rated OUTSTANDING and our east site is Ofsted rated GOOD.

Financial review

Financial

Rainbow Pre-School & Extended Services receives funding for children who are eligible to receive Government funding which is up to 30 hours per week for 3 and 4 year olds. Eligible families may also claim for funding for 2 year olds. In addition, fees are charged for sessions not eligible to be funded.

There have been no internal fund raising events held throughout this year, but a small amount of funding was raised by arranging letters from Santa and school photographs.

Reserves Policy

We aim to hold in reserve unrestricted funds that equal payment in lieu of notice periods for all staff and any other liabilities, which we estimate to be approximately £120,000. At the end of this financial period, we held £147,386 in reserves held. It is anticipated that it will be possible to maintain the reserves we are aiming for in the next financial year.

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Rainbow Pre-School & Extended Services

Trustees' Annual Report (continued)

Year ended 31 August 2022

13 July 2023 The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

Julia Khan Trustee

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Rainbow Pre-School & Extended Services

Independent Examiner's Report to the Trustees of Rainbow Pre-School & Extended Services

Year ended 31 August 2022

I report to the trustees on my examination of the financial statements of Rainbow Pre-School & Extended Services ('the charity') for the year ended 31 August 2022.

Responsibilities and basis of report

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

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 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

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

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 financial statements do not accord with those records; or

  3. the financial statements 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.

Shane Tharby FCA Independent Examiner

For and on behalf of Streets Chartered Accountants 3 Wellbrook Court Girton Cambridge CB3 0NA

18 July 2023

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Rainbow Pre-School & Extended Services

Statement of Financial Activities

Year ended 31 August 2022

2022 2021
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 4 11,500 11,500 22,925
Charitable activities 5 809,659 9,017 818,676 649,909
Other trading activities 6 1,167 1,167 396
Investment income 7 61 61 178
───────── ─────── ───────── ─────────
Total income 822,387 9,017 831,404 673,408
═════════ ═══════ ═════════ ═════════
Expenditure
Expenditure on charitable activities
8,9
809,812 9,017 818,829 755,383
───────── ─────── ───────── ─────────
Total expenditure 809,812 9,017 818,829 755,383
═════════ ═══════ ═════════ ═════════
───────── ─────── ───────── ─────────
Net income/(expenditure) and net movement
in funds 12,575 12,575 (81,975)
═════════ ═══════ ═════════ ═════════
Reconciliation of funds
Total funds brought forward 134,811 134,811 216,786
───────── ─────── ───────── ─────────
Total funds carried forward 147,386 147,386 134,811
═════════ ═══════ ═════════ ═════════

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

The notes on pages 9 to 16 form part of these financial statements.

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Rainbow Pre-School & Extended Services

Statement of Financial Position

31 August 2022

2022 2021
Note £ £ £ £
Fixed assets
Tangible fixed assets 15 12,517 15,162
Current assets
Stocks 16 2,047 2,552
Debtors 17 84,248 31,152
Cash at bank and in hand 79,136 114,725
───────── ─────────
165,431 148,429
Creditors: amounts falling due within
one year 18 30,562 28,780
───────── ─────────
Net current assets 134,869 119,649
───────── ─────────
Total assets less current liabilities 147,386 134,811
───────── ─────────
Net assets 147,386 134,811
═════════ ═════════
Funds of the charity
Unrestricted funds 147,386 134,811
───────── ─────────
Total charity funds 20 147,386 134,811
═════════ ═════════

13 July 2023 These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:

Julia Khan Trustee

The notes on pages 9 to 16 form part of these financial statements.

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Rainbow Pre-School & Extended Services

Statement of Cash Flows

Year ended 31 August 2022

2022 2021
£ £
Cash flows from operating activities
Net income/(expenditure) 12,575 (81,975)
Adjustments for:
Depreciation of tangible fixed assets 12,642 21,457
Other interest receivable and similar income (61) (178)
Interest payable and similar charges 309 368
Changes in:
Stocks 505 637
Trade and other debtors (53,096) 71,275
Trade and other creditors 1,782 (6,324)
──────── ────────
Cash generated from operations (25,344) 5,260
Interest paid (309) (368)
Interest received 61 178
──────── ───────
Net cash (used in)/from operating activities (25,592) 5,070
════════ ═══════
Cash flows from investing activities
Purchase of tangible assets (9,997) (7,117)
──────── ───────
Net cash used in investing activities (9,997) (7,117)
════════ ═══════
Net decrease in cash and cash equivalents (35,589) (2,047)
Cash and cash equivalents at beginning of year 114,725 116,772
───────── ─────────
Cash and cash equivalents at end of year 79,136 114,725
═════════ ═════════

The notes on pages 9 to 16 form part of these financial statements.

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Rainbow Pre-School & Extended Services

Notes to the Financial Statements

Year ended 31 August 2022

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is The Nursery Building, St Andrews Lower School, Brunts Lane, Biggleswade, Bedfordshire, SG18 0LY.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

There are no judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Tangible fixed assets are recognised at cost, less accumulated depreciation. Depreciation is charged over the estimated life of the asset to its estimated residual value.

The recoverability of trade debtors are considered on a regular basis. When calculating the debtor provision, the trustees consider the age of the debts and the financial position of its customer.

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Rainbow Pre-School & Extended Services

Notes to the Financial Statements (continued)

Year ended 31 August 2022

3. Accounting policies (continued)

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation. Assets costing over £1,000 and having an expected life of over 12 months are capitalised.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings

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Rainbow Pre-School & Extended Services

Notes to the Financial Statements (continued)

Year ended 31 August 2022

3. Accounting policies (continued)

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the charity recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the charity with no future related costs are recognised in income in the period in which it becomes receivable.

4. Donations and legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Grants
Grants receivable 11,500 11,500 22,925 22,925
════════ ════════ ════════ ════════
Charitable activities
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Government funding 383,464 9,017 392,481
Fees 422,232 422,232
School lunches 3,963 3,963
───────── ─────── ─────────
809,659 9,017 818,676
═════════ ═══════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Government funding 407,918 29,184 437,102
Fees 209,141 209,141
School lunches 3,666 3,666
───────── ──────── ─────────
620,725 29,184 649,909
═════════ ════════ ═════════

5. Charitable activities

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Rainbow Pre-School & Extended Services

Notes to the Financial Statements (continued)

Year ended 31 August 2022

6. Other trading activities

Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Fundraising events 1,167 1,167 396 396
═══════ ═══════ ════ ════
7. Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2022 Funds 2021
£ £ £ £
Bank interest receivable 61 61 178 178
════ ════ ════ ════
8. Expenditure on charitable activities by fund type
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Provision of pre-school and extended services 568,008 9,017 577,025
Support costs 241,804 241,804
───────── ─────── ─────────
809,812 9,017 818,829
═════════ ═══════ ═════════
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Provision of pre-school and extended services 524,066 29,184 553,250
Support costs 202,133 202,133
───────── ──────── ─────────
726,199 29,184 755,383
═════════ ════════ ═════════
9. Expenditure on charitable activities by activity type
Activities
undertaken Total funds Total fund
directly Support costs 2022 2021
£ £ £ £
Provision of pre-school and extended
services 577,025 238,468 815,493 752,309
Governance costs 3,336 3,336 3,074
───────── ───────── ───────── ─────────
577,025 241,804 818,829 755,383
═════════ ═════════ ═════════ ═════════

Included within the activities undertaken directly for the provision of pre-school and extended services is a bad debt provision amounting to £ Nil (2021: £33,884).

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Rainbow Pre-School & Extended Services

Notes to the Financial Statements (continued)

Year ended 31 August 2022

10. Analysis of support costs

Provision of
pre-school and
extended
services Total 2022 Total 2021
£ £ £
Governance costs 3,336 3,336 3,074
Management costs 57,191 57,191 55,614
Information technology 26,637 26,637 27,942
Human resources 8,559 8,559 8,114
Depreciation 12,641 12,641 21,457
Rent 19,195 19,195 17,552
Support staff salaries 61,818 61,818 39,311
Other 52,427 52,427 29,069
───────── ───────── ─────────
241,804 241,804 202,133
═════════ ═════════ ═════════
11. Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
2022 2021
£ £
Depreciation of tangible fixed assets 12,642 21,457
Operating lease rentals 5,616 4,552
════════ ════════
12. Independent examination fees
2022 2021
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 3,027 2,706
═══════ ═══════

13. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2022 2021
£ £
Wages and salaries 594,019 515,374
Social security costs 31,300 30,605
Employer contributions to pension plans 11,161 9,619
───────── ─────────
636,480 555,598
═════════ ═════════

The average head count of employees during the year was 25 (2021: 22).

No employee received employee benefits of more than £60,000 during the year (2021: Nil).

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Rainbow Pre-School & Extended Services

Notes to the Financial Statements (continued)

Year ended 31 August 2022

13. Staff costs (continued)

Key Management Personnel

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £57,880 (2021:£85,985).

14. Trustee remuneration and expenses

Julia Khan is both a trustee and is also employed as the director of the charity. She received remuneration of £50,000 (2021: £48,820) for her role as a director and the charity paid £1,313 (2021: £1,274) in pension contributions. This is permitted under the charity's constitution. No amounts were paid in respect of her role as a trustee.

No expenses were paid to any trustee during the year (2021: £nil).

15. Tangible fixed assets

Fixtures and
fittings
£
Cost
At 1 September 2021 107,082
Additions 9,997
─────────
At 31 August 2022 117,079
═════════
Depreciation
At 1 September 2021 91,920
Charge for the year 12,642
─────────
At 31 August 2022 104,562
═════════
Carrying amount
At 31 August 2022 12,517
═════════
At 31 August 2021 15,162
═════════
16. Stocks
2022 2021
£ £
Uniforms 2,047 2,552
═══════ ═══════
17. Debtors
2022 2021
£ £
Trade debtors 84,248 26,152
Other debtors 5,000
──────── ────────
84,248 31,152
════════ ════════

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Rainbow Pre-School & Extended Services

Notes to the Financial Statements (continued)

Year ended 31 August 2022

18. Creditors: amounts falling due within one year

2022 2021
£ £
Trade creditors 153 262
Accruals and deferred income 5,733 2,706
Social security and other taxes 12,840 19,716
Other creditors 11,836 6,096
──────── ────────
30,562 28,780
════════ ════════

19. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £11,161 (2021: £9,619).

20. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At 1 September At 31 August
2021 Income Expenditure 2022
£ £ £ £
General funds 134,811 822,387 (809,812) 147,386
═════════ ═════════ ═════════ ═════════
At 1 September At 31 August
2020 Income Expenditure 2021
£ £ £ £
General funds 216,786 644,224 (726,199) 134,811
═════════ ═════════ ═════════ ═════════
Restricted funds
At 1 September At 31 August
2021 Income Expenditure 2022
£ £ £ £
Special Education Needs Funding 9,017 (9,017)
════ ═══════ ═══════ ════
At 1 September At 31 August
2020 Income Expenditure 2021
£ £ £ £
Special Education Needs Funding 29,184 (29,184)
════ ════════ ════════ ════

During the year £9,017 (2021: £29,184) was received for Special Educational Needs provision. The income has been spent in full during the year on childcare staff costs.

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Rainbow Pre-School & Extended Services

Notes to the Financial Statements (continued)

Year ended 31 August 2022

21. Analysis of net assets between funds

Unrestricted Total Funds
Funds 2022
£ £
Tangible fixed assets 12,517 12,517
Current assets 165,431 165,431
Creditors less than 1 year (30,562) (30,562)
───────── ─────────
Net assets 147,386 147,386
═════════ ═════════
Unrestricted Total Funds
Funds 2021
£ £
Tangible fixed assets 15,162 15,162
Current assets 148,429 148,429
Creditors less than 1 year (28,780) (28,780)
───────── ─────────
Net assets 134,811 134,811
═════════ ═════════

22. Analysis of changes in net debt

At 1 September At 31 August
2021 Cash flows 2022
£ £ £
Cash at bank and in hand 114,725 (35,589) 79,136
═════════ ════════ ════════

23. Capital commitments

Capital expenditure contracted for but not provided for in the financial statements is as follows:

2022 2021
£ £
Tangible fixed assets 7,856
════ ═══════
Operating lease commitments
The total future minimum lease payments under non-cancellable operating leases are as follows:
2022 2021
£ £
Not later than 1 year 8,793 1,634
Later than 1 year and not later than 5 years 18,378 124
──────── ───────
27,171 1,758
════════ ═══════

24. Operating lease commitments

25. Related parties

There were no related party transactions during the year other than those disclosed in notes 13 and 14.

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