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2023-08-31-accounts

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LITTLE OWLS PRE-SCHOOL PLYMOUTH CIO Unaudited Statement of Financial Activities Year to 31 August 2023

Page 1 of 9

Contents:

Page No.
Highlights 3
Chair’s Foreword 4
The Board of Trustees 5
Charity Information 6
Trustee Report 7
Strategic Objectives 2023 8
Financial Governance & Financial Accounts 9

Page 2 of 9

Highlights

The Board of Trustees of Little Owls Pre-School (Plymouth) CIO is pleased to present their annual report and accounts for the year ending 31 August 2023 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 seven members of staff full-time on both all year round and term-time contracts.

Financial Summary

The financial year to 31 August 2023 generated total revenues of £179,664 which represents a decrease of £4701 compared to the previous financial year.

The total cost, including administrative expenses, to deliver the revenues was £165,166. This resulted in an operational surplus, including £959 investment interest received, of £15457.

Trustee’s funds as at the 31[st] August 2023 was £139,624 (2022 £124,167).

Page 3 of 9

Chair’s Foreword

I provide my report for the year ended 31 August 2023.

A year which sadly saw two long-standing Little Owls staff leave us. Pauline took her well-deserved retirement and Caroline, our Administrator and Secretary, stepped down to pursue a career with Plymouth City Council. We formally thank them for all their hard work over the years and wish them all the very best for the future.

During recent times, the childcare industry has suffered a recruitment crisis and, in line with nurseries nationwide, retaining and attracting new staff is very difficult. We remain hopeful that the industry will benefit from central government’s initiatives and incentives currently available to encourage suitably qualified workers back to Early Years and, as a Board, we will look to develop innovative market-leading methods to recruit and retain staff to ensure Little Owls is recognised as a workplace of choice.

The Board agreed to increase fees for the third year running to keep pace with rising costs in particular utilities and national minimum wage increases. However, our fees remain competitive.

The setting is performing well, and we continue to invest in staff, facilities and educational resources.

Despite the staffing challenges throughout the year, effective cost management helped to deliver strong financial results for the 12 months to 31 August 2023 and saw Trustee’s Funds increase to £139,624.

Links with local schools remain strong and the team works hard to help ensure school transitions are a positive experience for all our children.

Relationships with other educational institutions remain positive and, we are advised, Little Owls is one of the only settings that continues to provide work experience placements for school age children. Links with colleges also remain positive and we welcomed several childcare and speech and language student placements over the course of the year.

Our Strategic Objectives for 2022/2023

  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. Completed. The Manager has looked at optimising staffing given the challenges with recruitment. The setting works with mixed ratios wherever possible to alleviate the pressure on staffing and provide fun and challenging learning opportunities for the children. This works well with this cohort of children as there are a few siblings in the setting however, it is in constant review.

  2. To consider, and implement if appropriate, childcare management software. Completed. The Manager selected IConnect which was sourced and implemented and has been well-received by both our families and staff.

  3. To develop and issue a parent/carer questionnaire with a view to using the outputs in marketing activities which will be agreed by the Board.

  4. Completed. Returns were low with the key request relating to information on up-and-coming events and curriculum which the Manager now has in hand.

Skye Godfrey, MSc, BSc (Hons), CIPS Chair, Little Owls Pre-School (Plymouth) CIO

Page 4 of 9

The Board of Trustees

Skye Godfrey, MSc, BSc (Hons), CIPS – Chair

Skye Godfrey took over as Chair of the charity in January 2013 after being on the committee for a period of time. Skye has senior level commercial experience and has led most of the key organizational changes over the years and thus 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 for our children and passionately believes children should have the best start in life with Early Years education playing a vital role in this.

Mark Pickersgill, MBA, CEng, FIMechE – Treasurer

Mark joined the Board in 2017. During his 30 year career in the UK and international rail industry, Mark held senior engineering, operations, commercial and customer management roles, including three Board positions for award wining 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 company – Bombardier 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. Mark is currently a Trustee and Director of Devonport High School for Boys, a local Grammar school.

Nick Hellings, MBA – Secretary

Nick Hellings originally joined the Board in 2017 to assist with governance. Nick is a local businessman and was the Chair of Governors at a local school prior to his role with us; bringing a huge amount of relevant experience.

The Board members give their time and expertise freely and no remuneration costs or expenses are paid to the individuals as Trustees of the Charitable Incorporated Organisation.

Page 5 of 9

Charity Information

Charity Number: 1159402

Little Owls Pre-School (Plymouth) CIO Allard House 82-84 Higher Compton Road Higher Compton Plymouth PL3 5JD Ofsted Number: EY2596605 Bank: Natwest

Registered Charity Address:

Little Owls Pre-School (Plymouth) CIO Allard House 82-84 Higher Compton Road Higher Compton Plymouth PL3 5JD

Solicitors:

Wolferstans North Hill Plymouth

Accountants:

TS Partners Limited 4-5 Russell Court Palace Street Plymouth PL1 2AS

Page 6 of 9

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, Complaints.

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 and are available to them.

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 EYFS and ‘Development Matters’.

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.

Skye Godfrey has Board responsibility for Health and Safety.

The Little Owls Fire Safety documentation was developed by external consultant ‘Fire Safety Matters’.

Employees have received fire safety training in accordance with their roles.

Insurance

Our insurance is provided by Royal Sun Alliance via the Early Years Alliance. We hold £5m of Public Liability insurance and £10m Employers Liability insurance.

Page 7 of 9

Strategic Objectives for 2023/2024

Identify and apply for appropriate grants to improve the facilities and learning opportunities for our children and families.

Explore the possibility of expanding the premises with our landlord.

Identify additional, affordable benefits to attract and retain staff, for example:

Page 8 of 9

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 a 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 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 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 24[th] June 2024.

Corporate Governance

During the year, the Board consisted of the three First Charity Trustees. Details of these Board members are given on page 4 of this report.

The Board members and the Manager meet monthly with the Charity’s Accountants, TS Partners Limited, to discuss the Charity’s accounts and also meet as a Board to discuss and agree key strategic issues.

Page 9 of 9

Registered number CE003352

Little Owls Preschool CIO

Report and Accounts

31 August 2023

Little Owls Preschool CIO Income and Expenditure Account for the year ended 31 August 2023

Turnover
Cost of sales
Gross surplus
Administrative expenses
Operating surplus
Interest payable
Surplus before taxation
Tax on surplus
Surplus for the financial year
2023
£
179,664
(3,011)
176,653
(162,155)
14,498
959
15,457
-
15,457
2022
£
184,365
(4,168)
180,197
(141,689)
38,508
-
38,508
-
38,508

1

Little Owls Preschool CIO Registered number: CE003352 Balance Sheet as at 31 August 2023

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
2023
£
1,425
91,663
62,425
154,088
(15,889)
138,199
139,624
139,624
139,624
2022
£
195
102,017
31,480
133,497
(9,525)
123,972
124,167
124,167
124,167
2022
£
195
102,017
31,480
133,497
(9,525)
123,972
124,167
124,167
124,167
124,167
124,167
124,167

The directors 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 directors 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 Director Approved by the board on 14 June 2024

2

Little Owls Preschool CIO Notes to the Accounts for the year ended 31 August 2023

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.

Taxation

A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Provisions

Provisions (ie 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.

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
2023
Number
8
2022
Number
12

3

Little Owls Preschool CIO Notes to the Accounts for the year ended 31 August 2023

3 Tangible fixed assets

Cost
At 1 September 2022
Additions
At 31 August 2023
Depreciation
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022
4
Debtors
Trade debtors
Other debtors
5
Creditors: amounts falling due within one year
Non-equity preference shares
Obligations under finance lease and hire purchase contracts
Trade creditors
Taxation and social security costs
Other creditors
2023
£
6,663
85,000
91,663
2023
£
-
(1,056)
-
(4,726)
21,671
15,889
Plant and
machinery
etc
£
195
1,230
1,425
-
1,425
195
2022
£
6,842
95,175
102,017
2022
£
8,300
1,055
170
-
-
9,525

6 Other information

Little Owls Preschool CIO is a private company limited by shares and incorporated 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 2023

This schedule does not form part of the statutory accounts

Sales
Cost of sales
Gross surplus
Administrative expenses
Operating surplus
Interest payable
Surplus before tax
2023
£
179,664
(3,011)
176,653
(162,155)
14,498
959
15,457
2022
£
184,365
(4,168)
180,197
(141,689)
38,508
-
38,508

5

Little Owls Preschool CIO Detailed Income and Expenditure Account for the year ended 31 August 2023

This schedule does not form part of the statutory accounts

Sales
Fee income
Other income
Grant income
Cost of sales
Consultancy fees
Direct labour
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
Service charges
Light and heat
Cleaning & waste
General administrative expenses:
Telephone and internet
Printing, postage and stationary
Office expenses
Information and publications
Subscriptions
Bank charges
Insurance
Equipment expensed
Software
Bad debts
Repairs and maintenance
Cleaning materials
Sundry expenses
Legal and professional costs:
Audit fees
Accountancy fees
Payroll fees
Advertising and PR
2023
£
87,547
-
92,117
179,664
150
766
1,089
496
510
3,011
115,430
1,597
4,336
820
-
122,183
14,400
1,247
237
397
4,515
20,796
557
480
531
-
438
354
392
3,137
1,087
-
5,320
1,090
115
13,501
-
4,601
855
219
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

6

Little Owls Preschool CIO

Detailed Income and Expenditure Account for the year ended 31 August 2023

This schedule does not form part of the statutory accounts

Other legal and professional 2023
£
-
5,675
162,155
2022
£
180
5,516
141,689

7

CHARITY COMMISSION FOR ENGLAND AND WALES Independent examinerfs report on the accounts Section A Independent Examiner'5 Report R•port to the trustees Little Owls Preschool Plymouth CIO On accounts for the year onded 3110812023 Charfty no lif any) 1159402 Set out on pages I report to the trustees on my examination of the accounts of the above charity ('the Trust.) for the year ended 3110812023. Re$pon8lbllltles and basls of report As the charity's twstees. you are responsible for the preparation of the a¢¢ounts in accordance with the requirements of the Charitie5 Art 2011 (?he A(Y). I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5){b) of the Act. Indgpendent I have completed my examination. l Confirm that no material matters have examinerfs Statement come to my attention in connection with the examination (other than that disdosed below.) which gives me caus8 to believe that in, any material respect: the accounting records were not kept in accordance with section 130 of the Charities Act,. or the accounts did not accord with the accounting records; or the accounts did not comply with the applicable requirements conceming the fomi and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requiremerrt that the accounts give a Irue and fairf view whiGh is not a matter considered as part of an indeperKlent examination. I have no cOn￿mS and have come across no other matters in connection with the examination to which attention should be drawn in this report in order lo enable a proper understanding of th8 accounts to be reached. Signed: Date: 3010612024 Name: Daniel Cros$ Relevant professional qualification(s) or body (If any): MA4T&A Address: 4-5 Russell Court, Palace Street Plymouth PL12AS IER Oct 2018

Section B Disclosure Only complete if the examiner needs to highlight material matters of con￿rn (see CC32. IndeperKlent examination of charity accounts.. directions arKI guidance for examiners). Glvo here brief detalls of any Items that the examlner wlshes to dls¢lo8e. IER Oct 2018