LITTLE OWLS PRE-SCHOOL PLYMOUTH CIO Unaudited Statement of Financial Activities ## Year ended 31 August 2021 MCas Accounting & Tax Services Association of Chartered Certified Accountants ## **Contents:** ||Page No.| |---|---| |Highlights|2| |Chair’s Foreword|3| |The Board of Trustees|4| |Charity Information|5| |Trustee Report|6| |Strategic Objectives for 2022|7| |Financial Governance & Financial Accounts|8 - 15| 1 | P a g e ## **Highlights** The Board of Trustees of Little Owls Pre-School Plymouth (CIO) are pleased to present their annual report and accounts for the year ending 31st August 2021, and confirm they comply with the requirements of the Charity Commission. ## **Charitable Objects** To provide high quality childcare for children primarily under statutory school age and to work for the public benefit by having as its objects the development and education of children and young people by: 1. Promoting their care and safety. 2. Promoting their education and parental involvement. 3. Promoting their health and wellbeing. 4. Providing services to support them and their families and carers. ## **Little Owls** Little Owls has been established in the local community for over 30 years. The current setting provides childcare and education for approximately 45 children and employs circa 13 (2020 10) members of staff on both full-time and part-time contracts. ## **Financial Summary:** The financial year to 31 August 2021 generated total revenues of £171,222 which represents an increase of 21% compared to the previous year. The expenditure spent to deliver the revenues were £149,692 (2020 £129,205) in line with the revenue increase. This has resulted in a surplus of £21,530. There were a number of anticipated costs that the trustees have made allowances for, these are: £5,500 repair & maintenance £15,020 additional staffing resources Thus ending with a bank balance & cash at hand of £95,887 on 31 August 2021. 2 | P a g e ## **Chair's Foreword** I provide my report for the year ended 31 August 2021. During another somewhat challenging year, we are able to report and celebrate a solid year of trading despite continuing to battle with the difficulties associated with the pandemic. As a Board, we extend our thanks to the operations team who steadfastly remained open throughout, ensuring we continued to support our families in the local community during these challenging times. With great sadness I report the loss of a key member of our team, our Deputy Manager, Kate Hard who unexpectedly passed away at the beginning of 2021. This left a huge gap at Little Owls and it was a difficult time to manage. Little Owls continues to miss her. We offer our thanks to Kate’s family who donated a beautiful ‘reading chair’ to the setting in her memory, meaning Kate always remains in our thoughts. At the beginning of 2021 we agreed to increase our fees for the first time in six years however we remained competitive and our child numbers remained high. The setting is performing w ell and we continue to invest in the setting, having installed gas central heating as an alternative to our electric heating and astro turf in the garden area ensuring our children can use the space all year round. The results for the year ended 31 August 2021, saw Little Owls with a bank balance of £69,810 which includes a small amount of covid support monies from the Local Authority which our local MP assisted us in securing. We formally thank Luke Pollard MP and his team. In July 2021, we moved accountants from James Sowden to MCAS with the aim to further improve and strengthen our financial management, reporting and the support we offer to the team. Links with local schools remain strong and the team works well to help ensure school transitions are a positive experience for our children. Relationships with other educational institutions continued to develop although we were restricted in the number of placements, we were able to offer because of the pandemic. However, we did welcome two students from Achievement Training and one from City College. Unfortunately, we were unable to offer placements to our overseas colleagues but hope to do so in the future when circumstances allow. ## **Our Strategic Objectives for 2020/2021:** 1. To carry out financial modelling to see if the charity has sufficient funds to purchase a permanent site to operate from. If this is a financially viable option, it would save the charity money. The financial impact of the pandemic continues to affect organisations and we had insufficient funds to pursue the purchase of the site this year so this strategic objective will carry over into 2022. 2. To build on and retain talent within the current team, including consideration of other business structures. We restructured the senior operations team at the beginning of 2021 and have considered some alternative structures but are still assessing others so this strategic objective will carry over into 2022. Skye Godfrey, MSc, BSc (Hons), MCIPS Chair, Little Owls Pre-School (Plymouth) CIO 3 | P a g e ## **The Board of Trustees** Skye Godfrey, MSc, BSc (Hons}, MCIPS Chair Skye Godfrey took over as Chair in January 2013 and has led most of the o r g a n i z a t i o n a l changes. Skye enjoys helping charities/not for profit businesses become more commercially aware, competitive and sustainable. She has been instrumental in identifying and implementing key opportunities to improve the care and education of the children. She passionately believes children should have the best start in life and that quality Early Years education plays a key role in this. Mark Pickersgill, MBA, CEng, FIMechE. ## Treasurer Mark joined the Board in 2017. During his 30-year career in the UK a n d in t e r n a t i o n a l Rail industry, Mark held senior engineering, operations, commercial and customer management roles, including three Board positions for award winning companies within the privatised passenger and freight sectors. Mark ended his Rail career as the UK's senior director with the world's largest transportation companyBombardier Transportation. He has a proven track record of improving the financial and operational performance of businesses, safely, which has been a common theme throughout his career, and which remains an area of particular interest and enjoyment for him today making him well-placed to act as Treasurer for Little Owls. ## Caroline Hellings ## Secretary Caroline Hellings has been Little Owls' secretary for 12 years. Caroline has been instrumental in developing Little Owls into a sustainable business. It was Caroline who first identified the opportunity to develop the Mannamead setting. It was also Caroline's large network of local contacts that enabled us to establish the Mannamead setting at minimal cost with overwhelming support and donations from the local community. ## Nick Hellings MBA Trustee Nick Hellings joined the Board in 2017 to assist with governance. Nick is a local businessman and was the Chair of Governors at a local school so brings with him a huge amount of relevant experience. The Board members give their time and expertise freely and no remuneration or expenses are paid to the individuals as Trustees of the Charitable Incorporated Organisation. 4 | P a g e ## **Charity Information** Charity Number: 1159402 ## **Setting information:** Little Owls Pre-School (Plymouth) CIO 82-84 Higher Compton Road Higher Compton Plymouth PL3 5JD Ofsted Number: EY2596605 Bank: Natwest Registered Charity Address: Little Owls Pre-School (Plymouth) CIO 82-84 Higher Compton Road Higher Compton Plymouth PL3 5JD Solicitors: Wolferstans North Hill Plymouth 5 | P a g e ## **Trustee Report** ## **Trustee Responsibilities** The Board of Trustees is responsible for ensuring the Charity demonstrates financial probity, is compliant with relevant legislation and encourages good practice, ## Policies Little Owls regularly reviews its policies to ensure compliance with legislation and to reflect good practice. Little Owls has a suite of approximately 40 policies including key policies such as Safeguarding and Child Protection, Whistleblowing, Equal Opportunities, SEN Provision, Making a Complaint. New employees, student placements and volunteers are required to read and accept the policies as part of their induction. New or revised policies are briefed at staff meetings and cascaded appropriately. Parents/Carers are briefed about the policies during the Child Registration process. Skye Godfrey has Board responsibility for Safeguarding. ## Fees Fees are set at Board level and consideration is given to operational costs, market sustainability, competition. Fees are reviewed as/when appropriate. ## Curriculum Little Owls is fully compliant with the Early Years Foundation Stage curriculum. ## Health and Safety Little Owls has a member of staff dedicated to Health and Safety. The member of staff is responsible for carrying out fire drills, highlighting health and safety issues to the Board and for ensuring records are maintained. The Little Owls Health and Safety and Fire Safety manuals and documentation were developed by external consultant, Health and Safety Matters. Employees have received fire safety and fire warden training in accordance with their roles. Skye Godfrey has Board responsibility for Health and Safety. ## Insurance Our insurance is provided by Royal Sun Alliance via the Pre-School Learning Alliance. We hold £5m of Public Liability insurance and £10m Employers Liability insurance. 6 | P a g e ## **Strategic Objectives for 2022** 1. To consider the long-term business structure and supporting strategy for Little Owls. 2. To progress plans with a view to expansion. 3. To progress the overhaul and development of the website. 4. To transition to new accountants with a view to improved, expertise to better support the charity. 7 | P a g e 8IPage ## **Financial Accounting, Procedures and Governance** _Legislation requires the Board to prepare financial accounts for each financial year which give a true and fair view of the state of affairs of the Charity as at the end of the financial year. The Accounts are independently examined as part of this process._ _In preparing the accounts, the Board is required to:_ - _select suitable accounting policies and apply these consistently;_ - _make judgements and estimates that are reasonable and prudent;_ - _state whether applicable accounting standards have been followed, subject to any material departure disclosed and explained in the financial statements; and_ - _prepare the financial accounts_ _The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable to ensure the accounts comply with the Charities Act 2011. 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._ ## **Approval of financial accounts** The financial accounts were presented at the Annual General Meeting of the Charity held on 8[th] June 2022. ## **Corporate Governance** During the year the Board consisted of three First Charity Trustees and one Trustee. Details of these Board members are given on page 4 of this report. The Board meets at least four times each year and more frequently as and when required. 9 | P a g e ## **INDEPENDENT EXAMINER'S REPORT** to the trustees of Little Owls Preschool Plymouth CIO I report on the accounts of the Trust for the year ended 31August 2021 which are set out on the following pages. ## _Respective responsibilities of trustees and examiner_ The charity's trustees are responsible for the preparation of the accounts. The charity's independent examination is needed. The Trustees consider that an audit is not required for this year under section 144{2) of the Charities Act 2011 {the 2011Act) and that an independent examination is needed. ## _It is my responsibility to:_ - examine the accounts under section 145 of the 2011Act; - to follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145{5){b) of the 2011Act; and - to state whether particular matters that have come to my attention. My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below. ## _Independent examiner's statement_ In connection with my examination, no matter has come to my attention: - which gives me reasonable cause to believe that, in any material respect, the requirements - (a) to keep accounting records in accordance with section 130 of the 2011Act and (b) to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011Act have not been met; or - to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Mylien Verboom ACCA MCas Accounting & Tax Services 63-66 Hatton Gardens, 5/F suite 23 London, EC1N 8LE 9th June 2022 10 | P a g e ## **LITTLE OWLS PRESCHOOL PLYMOUTH CIO CHARITY NUMBER: 1159402** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST AUGUST 2021** |**INCOMING RESOURCES**
**Note**
Grants & Donations
Charitable Activities:
Pre-school fees
Other Income
Investment Income
2
**Total Incoming Resources**
**RESOURCES EXPENDED**
Charitabel Activities:
3
Governance Costs
Audit, Accountancy & Payroll
5
Legal & Professional fees
**Total Resources Expended**
**NET INCOMING RESOURCES**
Transfers between Funds
Total Funds Brought Forward
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**Income Fund**
**Restricted**
**Income Fund**
**Total Funds**
**Year ended**
**31 August**
**2021**
**Total Funds**
**Year ended**
**31 August**
**2020**
**£**
**£**
**£**
**£**
111,395
111,395
104,866
58,931
58,931
24,971
896
896
3,709| |---|---| ||**171,222**
**171,222**
**133,546**| ||141,240
141,240
124,464
4,973
4,973
3,468
3,479
3,479
1,273| ||**149,692**
**149,692**
**129,205**| ||**21,530**
**21,530**
**4,341**
50,208
13,920
64,128
59,787| ||**71,738**
**13,920**
**85,658**
**64,128**| **The notes that follow form part of the financial statements** 11 | P a g e |**BALANCE SHEET**
**FOR THE YEAR ENDED 31ST AUGUST 2021**
**2021**
**Note**
**£**
**£**
**Current Assets**
Debtors
4
(1,388)
Cash and bank
95,886
**94,498**
**Current Liabilities**
Creditors
296
Social security & other taxes
2,319
Other creditors
5
6,225
**8,840**
Net Current Assets/(Liabilities)
85,658
**TOTAL ASSETS**
**85,658**
**Represented by**
Restricted Funds
6
13,920
Unrestricted Funds
6
71,738
**85,658**|**BALANCE SHEET**
**FOR THE YEAR ENDED 31ST AUGUST 2021**
**2021**
**Note**
**£**
**£**
**Current Assets**
Debtors
4
(1,388)
Cash and bank
95,886
**94,498**
**Current Liabilities**
Creditors
296
Social security & other taxes
2,319
Other creditors
5
6,225
**8,840**
Net Current Assets/(Liabilities)
85,658
**TOTAL ASSETS**
**85,658**
**Represented by**
Restricted Funds
6
13,920
Unrestricted Funds
6
71,738
**85,658**|**BALANCE SHEET**
**FOR THE YEAR ENDED 31ST AUGUST 2021**
**2021**
**Note**
**£**
**£**
**Current Assets**
Debtors
4
(1,388)
Cash and bank
95,886
**94,498**
**Current Liabilities**
Creditors
296
Social security & other taxes
2,319
Other creditors
5
6,225
**8,840**
Net Current Assets/(Liabilities)
85,658
**TOTAL ASSETS**
**85,658**
**Represented by**
Restricted Funds
6
13,920
Unrestricted Funds
6
71,738
**85,658**|**2020**
**£**
**£**
(2,483)
69,810
**67,327**
607
546
2,046
**3,199**
64,128
**64,128**
13,920
50,208
**64,128**|**2020**
**£**
**£**
(2,483)
69,810
**67,327**
607
546
2,046
**3,199**
64,128
**64,128**
13,920
50,208
**64,128**| |---|---|---|---|---| ||**94,498**
296
2,319
6,225||**67,327**
607
546
2,046|| ||**8,840**||**3,199**|| |||**85,658**||**64,128**| |||13,920
71,738||13,920
50,208| |||**85,658**||**64,128**| Signed on behalf of the Trustees Skye Godfrey, MSc, BSc (Hons), MCIPS Chair, Little Owls Pre-School (Plymouth) CIO 9[th] June 2022 The notes that follow form part of the financial statements 12 | P a g e ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST** **2021** ## 1 **STATEMENT OF ACCOUNTING** ## POLICIES Basis of accounting The financial statements have been drawn up in accordance with the Charities Act 2011, the Statement of Recommended Practice on Accounting and Reporting by Charities, of March 2005, accounting standards and the historic cost basis of accounting. ## Incoming resources All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Donations and grants are recognised when the charity has been notified of both the amount and settlement date. Interest on funds held on deposit is included when receivable and the amount can be reliably measured by the charity. ## Resources expended Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accrual’s basis. ## Fund accounting Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Restricted funds are to be used in accordance with specific restrictions imposed by the donor. ## **2 INVESTMENT INCOME** All of the charity's investment income arises from money held in interest bearing deposits and other bank accounts. 13 | P a g e ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2021** |**3 CHARITABLE ACTIVITIES**
Food & Drink
Activity supplies
Advertising & Marketing
Bank Fees
Cleaning Services
General Expenses
Insurance
IT Software and Consumables
Postage, Freight & Courier
Rates
Rent
Repairs & Maintenance
Salaries
Staff Training
Telephone & Internet
Travel - National
Light & Heat, utilities
Uniform
Staff Welfare
**4 DEBTORS**
Credits issued due to Covid lockdown|**2021**
**£**
1,240
726
45
5,123
3,454
898
351
790
14,400
8,602
101,279
507
354
3,471
**141,240**
**2021**
**£**
(1,388)
**(1,388)**|**2020**
**£**
713
356
607
4,791
2,585
896
493
897
395
12,200
6,902
86,259
760
501
(2)
5,990
118| |---|---|---| |||**124,464**| |||**2020**
**£**
(2,483)| |||**(2,483)**| 14 | P a g e ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2021** |**5 OTHER CREDITORS**
Pension costs
Accruals
PAYE & NI
**6 FUNDS**
Current Assets
Current Liabilities|**2021**
**£**
6,225
**6,225**
**Unrestricted**
**Fund**
**Restricted**
**Fund**
**£**
**£**
80,579
13,920
(8,840)|**2020**
**£**
259
1,015
772| |---|---|---| |||**2,046**| |||**Total Fund**
**£**
**94,499**
**(8,840)**| ||**71,739**
**13,920**|**85,659**| 15 | P a g e