## **L** ITTLE OWLS PRE-SCHOOL PLYMOUTH CIO
Unaudited Statement of Financial Activities
Year To
## 31 August 2022
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## **Contents:**
||Page No.|
|---|---|
|Highlights|2|
|Chair’s Foreword|3|
|The Board of Trustees|4|
|Charity Information|5|
|Trustee Report|6|
|Strategic Objectives for 2023|7|
|Financial Governance & Financial Accounts|8 - 15|
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## **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 2022, and confirm they comply with the requirements of the Charities 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 40 years. The current setting provides childcare and education for approximately 45 children and employs circa 7 members of staff on both full-time and part-time contracts.
## **Financial Summary:**
The financial year to 31 August 2022 generated total revenues of £184,365 which represents an increase of £13,143 compared to the previous year (2021 £171,222). The total cost, including administrative expenses, to deliver the revenues was £145,857 (2021 £149,692). This resulted in an operational surplus of £38,508 (2021 £21,530).
Trustees Funds as at the 31 August 2022 was £124,167 (2021 £85,659).
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## **Chair's Foreword**
I provide my report for the year ended 31 August 2022.
Another challenging year which saw us overcome the tail-end of the pandemic and survive the departure of the Manager and Deputy Manager in a short period of time who both left Little Owls to pursue careers in different industries. We welcomed our new Manager, Mia, who led the team through an Ofsted inspection only six weeks after she started with us and helped secure a ‘Good’ rating and we formally congratulate the team on pulling together to achieve this success!
From a governance perspective, we changed the Charity’s Accountants to a local supplier, TS Partners to help us improve the level of day-to-day operational support with the aim to strengthen financial knowledge and ownership.
Staffing remains difficult as many qualified practitioners left the industry during the pandemic. However, we remain hopeful that the industry will benefit from the government’s initiatives and incentives that are on offer to encourage suitably qualified workers back to Early Years.
The Board agreed to increase parent fees for the second year running to keep up with rising costs in particular utilities and national minimum wage increases. However, our fees remain competitive.
The setting is performing w ell, and we continue to invest in staff facilities and educational resources. We closed for three weeks during the Summer to create a new staff room and this has been well received and made lunchtimes easier to manage.
Despite the many challenges throughout the year, effective cost management helped to deliver strong financial results for the 12 months to 31 August 2022 and saw Trustee’s Funds increase to £124,167.
Links with local schools remain strong and the team work well to help ensure school transitions are a positive experience for all our children and relationships with other educational institutions continued to develop in a positive manner. Despite being restricted at the beginning of the academic year, we were able to accommodate five new students with two existing students continuing their placements with us. We were delighted to recruit one of those continuing students who won student of the year.
## **Our Strategic Objectives for 2021/2022:**
1. To consider the long-term business structure and supporting strategy for Little Owls.
We have a high number of funded children leaving in the Summer with insufficient non-funded child numbers to bridge this gap. It is believed this is largely due to the financial impact of COVID so we have put this objective on hold.
2. To progress plans with a view to expansion of the setting.
See above point.
3. To progress the development of a new website.
Completed.
4. To transition to new accountants to help increase fiscal competence within the operational team and so better support the charity.
Completed.
Skye Godfrey, MSc, BSc (Hons), MCIPS Chair, Little Owls Pre-School (Plymouth) CIO
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## **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 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 of Little Owls in 2017. During his 30-year career in the U K a n d i nt e r n at io n a l r ail 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 in 2012 as the UK's senior director with Bombardier Transportation, then the world's largest transportation company. He has a proven track record of improving the financial and operational performance of businesses safely and is currently a Trustee and Director of Devonport High School for Boys, a local Grammar school.
## Caroline Hellings
## Secretary
Caroline Hellings has been Little Owls' secretary for 13 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 many years ago when we made our first move from a church hall 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.
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## **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
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## **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, and 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. This 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 training in accordance with their roles. Skye Godfrey has Board responsibility for Health and Safety.
## Insurance
Our insurance is provided by the Royal Sun Alliance via the Pre-School Learning Alliance. We have £5m of Public Liability insurance and £10m Employers Liability insurance.
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## **Strategic Objectives for 2023**
1. With rising costs our cost base remains a challenge and with this in mind, a review of operational efficiency to identify improved methods of working will be undertaken.
2. To consider, and implement if appropriate, childcare management software.
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## **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 10[th] May 2023.
## **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.
Board members and the Manager meet monthly with the Charity’s Accountants, TS Partners to discuss the Charity’s accounts and also meet as a Board to discuss and agree key strategic issues.
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Registered number CE003352
Little Owls Preschool CIO
Report and Accounts
31 August 2022
## **Little Owls Preschool CIO Income and Expenditure Account for the year ended 31 August 2022**
|**Turnover**
Cost of sales
**Gross surplus**
Administrative expenses
**Operating surplus**
**Surplus before taxation**
Tax on profit
**Surplus for the financial year**|**2022**
**£**
184,365
(4,168)
180,197
(141,689)
38,508
38,508
-
38,508|**2021**
**£**
171,222
(1,966)|
|---|---|---|
|||169,256
(147,726)|
|||21,530|
|||21,530
-|
|||21,530|
1
## **Little Owls Preschool CIO Registered number:** CE003352 **Balance Sheet as at 31 August 2022**
|**Notes**
**Fixed assets**
Tangible assets
3
**Current assets**
Debtors
4
Cash at bank and in hand
**Creditors: amounts falling due**
**within one year**
5
**Net current assets**
**Net assets**
**Capital and reserves**
Profit and loss account
**Trustees' funds**|**2022**
**£**
195
102,017
31,480
133,497
(9,525)
123,972
124,167
124,167
124,167|**2021**
**£**
-
(1,388)
95,887
94,499
(8,840)
85,659
85,659
85,659
85,659|**2021**
**£**
-
(1,388)
95,887
94,499
(8,840)
85,659
85,659
85,659
85,659|
|---|---|---|---|
|||||
||||85,659|
||||85,659|
||||85,659|
The trustees are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mark Pickersgill Trustee Approved by the board on 12 January 2023
2
**Little Owls Preschool CIO Notes to the Accounts for the year ended 31 August 2022**
## **1 Accounting policies**
## _**Turnover**_
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
## _**Debtors**_
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
## _**Creditors**_
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
3
## **Little Owls Preschool CIO Notes to the Accounts for the year ended 31 August 2022**
## _**Pensions**_
Contributions to defined contribution plans are expensed in the period to which they relate.
|**2**
**Employees**
Average number of persons employed by the company
**3**
**Tangible fixed assets**
**Cost**
Additions
At 31 August 2022
**Depreciation**
At 31 August 2022
**Net book value**
At 31 August 2022
**4**
**Debtors**
Trade debtors
Other debtors
**5**
**Creditors: amounts falling due within one year**
Obligations under finance lease and hire purchase contracts
Trade creditors
Taxation and social security costs
Other creditors|**2022**
**Number**
12
**2022**
**£**
6,842
95,175
102,017
**2022**
**£**
1,055
170
-
-
9,525|**2021**
**Number**
12|
|---|---|---|
|||**Plant and**
**machinery**
**etc**
**£**
195|
|||195|
||||
|||-|
|||195|
|||**2021**
**£**
(1,388)
-|
|||(1,388)|
|||**2021**
**£**
-
296
2,319
6,225|
|||8,840|
## **6 Other information**
Little Owls Preschool CIO is a Charitable incorporated organisation registered in England. Its registered office is: Allard House 82-84 Higher Compton Road Plymouth Devon PL3 5JD
4
## **Little Owls Preschool CIO Detailed Income and Expenditure Account for the year ended 31 August 2022**
_This schedule does not form part of the statutory accounts_
|**Sales**
Cost of sales
**Gross surplus**
Administrative expenses
**Operating surplus**
**Surplus before tax**|**2022**
**£**
184,365
(4,168)
180,197
(141,689)
38,508
38,508|**2021**
**£**
171,222
(1,966)|
|---|---|---|
|||169,256
(147,726)|
|||21,530|
|||21,530|
5
## **Little Owls Preschool CIO Detailed Income and Expenditure Account for the year ended 31 August 2022**
_This schedule does not form part of the statutory accounts_
|**Sales**
Pre school fees
Other income
Grant Income
**Cost of sales**
Consultancy fees
Refreshments
Crafts and activities
Other direct costs
**Administrative expenses**
Employee costs:
Wages and salaries
Pensions
Employer's NI
Staff training and welfare
Entertaining
Premises costs:
Rent
Rates
Light and heat
Cleaning
General administrative expenses:
Telephone and internet
Postage, printing and stationary
Information and publications
Subscriptions
Bank charges
Insurance
Equipment expensed
Bad debts
Repairs and maintenance
Cleaning materials
Sundry expenses
Legal and professional costs:
Payroll costs
Accountancy fees
Solicitors fees
Consultancy fees
Advertising and PR
Other legal and professional|**2022**
**£**
78,364
681
105,320
184,365
2,564
1,235
369
-
4,168
110,446
1,454
(8,586)
1,829
131
105,274
14,400
2,471
2,088
5,921
24,880
361
779
401
173
(45)
915
280
1,056
182
1,446
471
6,019
725
2,951
-
810
850
180
5,516
141,689|**2021**
**£**
58,931
896
111,395|
|---|---|---|
|||171,222|
|||-
1,240
405
321|
|||1,966|
|||96,466
1,343
3,470
472
-|
|||101,751|
|||14,400
1,218
2,253
6,497|
|||24,368|
|||354
790
351
154
-
898
477
-
8,125
1,363
504|
|||13,016|
|||612
4,361
3,086
393
-
139|
|||8,591|
||||
|||147,726|
6
##
|Report to the trustees|Charity Name
Little Owls Pre-SchoolPlymouth CIO||
|---|---|---|
|On accounts for the year
ended|31/08/22
Charity no
(ifany)
1159402||
|Set out on pages|||
||I report to thetrustees on myexamination of the accounts of the above||
||charity ("the Trust") for the yearended 31
/ 08 / 2022.||
|Responsibilities and|As the charity's trustees, you are responsible for the preparation of the||
|basis of report|accounts in accordancewith the requirements of the CharitiesAct 2011||
||("the Act").||
||I report in respect of myexamination of the Trust'saccountscarried 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|I have completed my examination.
I confirm that no material matters have||
||come to my attention in connection with the examination which gives me||
||cause to believe that in, any material respect:||