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2021-08-31-accounts

Lanivet & District Under Fives

A Charitable Incorporated Organisation

Charity No. 1163534

Company No. CE004674

Trustees' Report and Unaudited Accounts

31 August 2021

Cornwall Community Accountancy Service The Elms, 61 Green Lane Redruth Cornwall TR15 1LS

Lanivet & District Under Fives CONTENTS

Pages
Trustees' Annual Report 2 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Accounts 9 to 16

Page 1

Lanivet & District Under Fives TRUSTEES ANNUAL REPORT

REFERENCE AND ADMINISTRATIVE DETAILS

Company No. CE004674

Charity No. 1163534

Principal Office

The Church Hall Rectory Road Lanivet Cornwall PL30 5HB

Registered Office

The Barn Lamorick Lanivet Cornwall PL30 5HB

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The following Directors and Trustees served during the year:

Amy Giles Jessica Finnemore Joanne Cooper Katrina Verran Marina Warren Sara Jane Frost Sarah-Jane Cornwell Sophie Masters (Resigned 9 February 2021) Tracy Trevarthen

Accountants

Cornwall Community Accountancy Service The Elms, 61 Green Lane Redruth Cornwall TR15 1LS

Page 2

Lanivet & District Under Fives TRUSTEES ANNUAL REPORT

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 August 2021.

OBJECTIVES AND ACTIVITIES

The objects of the CIO are to enhance the development and education of children under statutory school age in particular but not exclusively by:

  1. Providing appropriate play, education and care facilities, family learning and extended hours groups, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that they offer opportunities for all children whatever their race, culture, religion, means or ability.

  2. Encouraging the study of the needs of such children and their families, promoting public interest in and recognition of such needs in the local areas.

  3. Instigating, adhering to and furthering the aims and objectives of the Preschool Learning Alliance.

Lanivet and District Under Fives is a preschool for children from the ages of 2 until 5. We are led by experienced staff and a volunteer parent committee. Our staff form a dedicated, professional and friendly team with many years of experience. Lanivet and District Under Fives help children to learn and develop through play in a happy and relaxed atmosphere. We focus on each child’s needs and adapt our planning to cater for the needs to provide the children to achieve their full potential. We review all children’s progress termly and then highlight gaps within each child’s learning. The children enjoy a variety of activities both indoors and outside with our wide range of toys, books and up to date play equipment. We also encourage healthy snacks and eating, circle time activities, music and movement, singing and story time.

The Trustees are satisfied that the Charity meets the public benefit through their objectives in consideration of the following:

• The Charity provides support to young children with the aim of promoting community adhesion.

• Organisational policies support equality and diversity in all aspects.

• The Charity provides opportunities for personal and professional development, in a person centred way, which is not restricted (other than where it may impact on the safety and/or wellbeing of the service users or staff, or the local community).

Page 3

Lanivet & District Under Fives TRUSTEES ANNUAL REPORT

ACHIEVEMENTS AND PERFORMANCE

Whilst the pre-school remained open throughout the ‘covid times’, they very much stayed in their bubble and resulting changes to the pre-school’s working practise have been put into place going forward.

Our 2021 leavers were 14 in number, leaving us with 8 on a waiting list and 30 children registered.

The staff wages were increased considerably in April, to reflect current working conditions, to reward staff loyalty and retention of experienced and qualified practitioners.

The Church Hall had some repairs to the gable end to prevent birds entering the roof space in February 2021 and we did experience some damage due to vandalism in June. The community around us pulled together to help us with our damaged items and tidying up afterwards.

Lanivet & District Under Fives continues to operate with a waiting list for children from our village and surrounding area.

FINANCIAL REVIEW

Income for the year has decreased to £74,234 (2020 £77,932). The grant income is restricted income and totals £102 (2020 £3,648).

Expenditure for the year has increased to £72,994 (2019 £67,873). Restricted expenditure for the year is £102 (2020 £5,602, including capital spend).

The surplus for the year is £198(2020 £10,059) meaning that reserves at the end of the year are £34,628 (2019 £34,430) all of which are unrestricted (2020 £34,430).

The organisation aims to hold 3 months worth of running costs as an unrestricted reserve to cover costs in the event of any unforeseen circumstances. On current operating costs this would be approximately £17,000. In addition, due to past cashflow problems the trustees have determined that a cashflow balance of £10,000 should be kept on an ongoing basis. Thus the free reserves after designated funds are determined as £27,000. There are two designated fund: One which relates to capital purchases that are yet to be depreciated to the income and expenditure account; and one that the trustees have identified in the current year to consider long term sustainability on premises.

Page 4

Lanivet & District Under Fives TRUSTEES ANNUAL REPORT

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Pre-school was originally an unincorporated charity, created in 1992, under the charity commission registration number 1036025. It transferred into a Charitable Incorporated Organisation in September 2015. It is governed by its constitution which is based on the charity commission standard for a foundation CIO and managed by the Board of Trustees.

Anyone who has an interest in the Preschool can apply to be a Trustee. Trustee role descriptions are available on request. Once an individual expresses such interest a self-nomination and declaration form for election as a trustee is completed and signed, as well as a self-assessment form where the new trustee identifies their own experience, knowledge and confidence in a range of relevant areas. Existing trustees will then determine the suitability of each candidate and appoint as applicable subject to our Trustee Code of Conduct being understood and signed.

The Pre-school also works with advice from the Preschool Learning Alliance guidelines.

TRUSTEES RESPONSIBILITIES

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees 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.

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102).

Signed on behalf of the board

Jessica Finnemore Trustee 29 June 2022

Page 5

Lanivet & District Under Fives INDEPENDENT EXAMINERS REPORT

Independent Examiner's Report to the trustees of Lanivet & District Under Fives

I report to the charity trustees on my examination of the accounts of Lanivet & District Under Fives for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act.

Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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

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.

Debbie Risborough Association of Chartered Certified Accountants Cornwall Community Accountancy Service The Elms, 61 Green Lane Redruth Cornwall TR15 1LS 29 June 2022

Page 6

Lanivet & District Under Fives STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 August 2021

Notes
Income and endowments
from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Total
Expenditure on:
Raising funds
7
Charitable activities
8
Total
Net gains on investments
Net income
9
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought
forward
Total funds carried
forward		 Unrestrict
ed funds
2021
£
319
72,099
1,714		 Restricted
funds
2021
£
-
102
-		 Total
funds
2021
£
319
72,201
1,714		 Total
funds
2020
£
646
76,062
1,224
74,132
233
73,702		 102
-
102		 74,234
233
73,804		 77,932
68
67,805
73,935
-		 102
-		 74,037
-		 67,873
-
197 - 197 10,059
197 - 197 10,059
197
34,430		 -
-		 197
34,430		 10,059
24,371
34,627 - 34,627 34,430

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

Page 7

Lanivet & District Under Fives BALANCE SHEET

at 31 August 2021

Company No. CE004674
Notes
2021
£
Fixed assets
Tangible assets
11
4,369
4,369
Current assets
Cash at bank and in hand
30,854
30,854
Creditors:Amount falling due within one year
12
(595)
Net current assets
30,259
Total assets less current liabilities
34,628
Net assets excluding pension asset or liability
34,628
Total net assets
34,628
The funds of the charity
Restricted funds
13
Unrestricted funds
13
General funds
28,258
Designated funds
6,369
34,627
Reserves
13
Total funds
34,627		 2020
£
5,411
5,411
30,209
30,209
(1,190)
29,019
34,430
34,430
34,430
27,019
7,411
34,430
34,430

These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 August 2021 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

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.

Approved by the board on 29 June 2022

And signed on its behalf by:

Jessica Finnemore

Trustee

29 June 2022

Page 8

Lanivet & District Under Fives NOTES TO THE ACCOUNTS

for the year ended 31 August 2021

1 Accounting policies

Basis of preparation

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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The charity constitutes a public benefit entity as defined by FRS102.

Change in basis of accounting or to previous accounts

There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.

Fund accounting

Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity. These are unrestricted funds earmarked by the trustees for particular Designated funds purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values. Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.

Page 9

Lanivet & District Under Fives NOTES TO THE ACCOUNTS

Income

Income
Recognition of Income is included in the Statement of Financial Activities (SoFA) when the
income charity becomes entitled to, and virtually certain to receive, the income and
the amount of the income can be measured with sufficient reliability.
Income with Where income has related expenditure the income and related expenditure is
related expenditure reported gross in the SoFA.
Donations and Voluntary income received by way of grants, donations and gifts is included
legacies in the the SoFA when receivable and only when the Charity has
unconditional entitlement to the income.
Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the
donations and gifts gift/donation to which it relates.
Donated services These are only included in income (with an equivalent amount in
and facilities expenditure) where the benefit to the Charity is reasonably quantifiable,
measurable and material.
Volunteer help The value of any volunteer help received is not included in the accounts.
Investment income This is included in the accounts when receivable.
Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market
revaluation of value at the end of the year.
fixed assets
Gains/(losses) on This includes any gain or loss on the sale of investments.
investment assets
Expenditure
Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any
expenditure VAT which cannot be fully recovered, and is reported as part of the
expenditure to which it relates.
Expenditure on These comprise the costs associated with attracting voluntary income,
raising funds fundraising trading costs and investment management costs.
Expenditure on These comprise the costs incurred by the Charity in the delivery of its
charitable activities and services in the furtherance of its objects, including the making
activities of grants and governance costs.
Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual
for grants that have been approved by the trustees at the end of the year but
not yet paid.
Governance costs These include those costs associated with meeting the constitutional and
statutory requirements of the Charity, including any audit/independent
examination fees, costs linked to the strategic management of the Charity,
together with a share of other administration costs.
Other expenditure These are support costs not allocated to a particular activity.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Page 10

Lanivet & District Under Fives NOTES TO THE ACCOUNTS

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Fixtures and Fittings

15% Straight Line

Trade and other debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Trade and other creditors

Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Leased assets

Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 11

Lanivet & District Under Fives NOTES TO THE ACCOUNTS

Statement of cash flows

The charity is exempt from preparing a statement of cash flows on the grounds that it is a small charity

2 Company status

The organisation is a charitable incorporated organisation and consequently does not have share capital.

3 Statement of Financial Activities - prior year

Income and endowments
from:
Donations and legacies
Charitable activities
Other trading activities
Total
Expenditure on:
Raising funds
Charitable activities
Total
Net income
Net income before other
gains/(losses)
Other gains and losses:
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried
forward
4
Income from donations and
legacies
Appeals and donations		 Unrestricted
funds
2020
£
646
72,414
1,224
74,284
68
62,203
62,271
12,013
12,013
12,013
22,417
34,430
Unrestricted
£
319
319		 Restricted
funds
2020
£
-
3,648
-
3,648
-
5,602
5,602
(1,954)
(1,954)
(1,954)
1,954
-
Total
2021
£
319
319		 Total
funds
2020
£
646
76,062
1,224
77,932
68
67,805
67,873
10,059
10,059
10,059
24,371
34,430
Total
2020
£
646
646

Page 12

Lanivet & District Under Fives NOTES TO THE ACCOUNTS

5 Income from charitable activities

Grant Income
HMRC Furlough
Small grants under
£1,000
Primary Purpose Trading
Fee Income from Parents
Funded fees from
Cornwall Council
Other income
6
Income from other trading
activities
Fundraising
7
Expenditure on raising funds
Fundraising trading
costs
Fundraising		 Unrestricted
£
-
-
12,995
58,763
341
72,099		 Restricted
£
-
102
-
-
-
102
Unrestricted
£
1,714
1,714
Unrestricted
£
233
233		 Total
2021
£
-
102
12,995
58,763
341
72,201
Total
2021
£
1,714
1,714
Total
2021
£
233
233		 Total
2020
£
2,648
1,000
3,897
68,286
231
76,062
Total
2020
£
1,224
1,224
Total
2020
£
68
68

Page 13

Lanivet & District Under Fives NOTES TO THE ACCOUNTS

Expenditure on charitable 8 activities

Direct expenditure on
charitable activities
Resources and
equipment
Hygiene, cleaning and
refreshments
Support Costs
Wages
Pensions
Staff training
Staff welfare
Rent & rates
Light, heat and power
Insurance
Repairs & renewals
Telephone and fax
IT expenses
Printing, postage and
stationary
sundry expenses
Consultancy fees
Legal and professional
fees
Depreciation
Governance costs
Accountancy fees
Independent examination
of the charity's accounts
9
Net income before transfers
This is stated after charging:
Depreciation of owned fixed assets
Independent Examiner's fee		 Unrestricted
£
3,170
-
57,643
1,138
237
440
3,192
2,658
721
91
355
568
444
620
129
35
1,042
624
595
73,702		 Restricted
£
62
-
-
-
-
-
-
-
-
-
-
-
40
-
-
-
-
-
-
102
2021
£
1,042
595		 Total
2021
£
3,232
-
57,643
1,138
237
440
3,192
2,658
721
91
355
568
484
620
129
35
1,042
624
595
73,804		 Total
2020
£
2,403
358
53,886
623
808
405
3,080
2,259
104
697
351
678
409
62
-
-
1,028
59
595
67,805
2020
£
1,028
595

Page 14

Lanivet & District Under Fives NOTES TO THE ACCOUNTS

10 Staff costs
Salaries and wages
57,643
Pension costs
1,138
58,781
No employee received emoluments in excess of £60,000.
The average monthly number of full time
equivalent employees during the year was as
follows:
2021
Number
Charitable activities
6
6
11 Tangible fixed assets
Cost or revaluation
At 1 September 2020
At 31 August 2021
Depreciation and
impairment
At 1 September 2020
Depreciation charge for
the year
At 31 August 2021
Net book values
At 31 August 2021
At 31 August 2020
12 Creditors:
amounts falling due within one
year
2021
£
Accruals and deferred income
595
595		 Fixtures and
Fittings
£
7,907
7,907
2,496
1,042
3,538
4,369
5,411		 53,886
623
54,509
2020
Number
6
6
Total
£
7,907
7,907
2,496
1,042
3,538
4,369
5,411
2020
£
1,190
1,190

Page 15

Lanivet & District Under Fives NOTES TO THE ACCOUNTS

13 Movement in funds

Restricted funds:
Restricted income
funds:
Community Chest Crisis
Fund
Total
Unrestricted funds:
General funds
Designated funds:
Capital fund
Sustainable premises
Total
Revaluation Reserves:
Total funds		 At 1
September
2020
-
-
27,019
5,411
2,000
7,411
34,430		 Incoming
resources
(including
other
gains/losses)
£
102
102
74,132
-
-
-
74,234		 Resources
expended
£
(102)
(102)
(72,893)
(1,042)
-
(1,042)
(74,037)		 At 31
August
2021
£
-
-
28,258
4,369
2,000
6,369
34,627

Purposes and restrictions in relation to the funds:

Restricted funds: Community Chest Crisis Grant funding for pre-school resources. Fund

Designated funds: Capital fund As per SORP requirements capital spend is transferred to a designated fund to set against depreciation. Sustainable premises Fund for long term sustainability of premises.

Analysis of net assets between

14 funds

Fixed assets
Net current assets		 Unrestricted
funds
£
4,369
30,259
34,628		 Total
£
4,369
30,259
34,628

15 Related party disclosures

Controlling party

The organisation is a charitable incorporated organisation that has no share capital and is controlled by the trustees; thus no single party controls the charity.

Page 16