2020-08-31-accounts

DUXFORD PRESCHOOL

REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31[ST] AUGUST 2020

Principal Address: Sunshine Room Duxford Primary School St John’s Street Duxford CB22 4RA

Independent Examiner: Rebecca Coles Room 33, Newton Hall, Town Street, Newton, Cambridge, CB22 7ZE

A charitable incorporated organisation registered in England and Wales Registered Charity no: 1165461 OFSTED Unique Reference no: EY50063

Trustees' Annual Report					for theperiod
**From **	Period start date			To	Period end date
	01	09	2019		31	08	2020

Section A Reference and administration details

Charity name Duxford Preschool

Other names charity is known by

Registered charity number (if any) 1165461

Charity's principal address

Sunshine Room Duxford C of E Community Primary School St. Johns Street Duxford, Cambridge Postcode CB22 4RA

Names of the charity trustees who manage the charity

1 2 3 4 5 7 8	Trustee name	Office (if any)	Dates acted if not for whole year	Name of person (or body) entitled to appoint trustee (if any)
	Stephen Burgess	Chair	29.09.16 to present day
	Natalie Hanlon	Treasurer	25.09.17 to 01.10.18 07.03.19 to present day
	Anne Granville-George	Secretary	25.09.17 to 30.09.19 (resigned)
	Sally Hodges	Trustee	30.09.19 to present day
	Mark Crouch	Trustee	30.09.19 to present day

Names of the trustees for the charity, if any, (for example, any custodian trustees)

Name Dates acted if not for whole year

Names and addresses of advisers (Optional information)

Type of adviser Name Address	Type of adviser Name Address	Type of adviser Name Address
Local Authority Early Years Advisor	Ann Ackers	Cambridge County Council

Name of chief executive or names of senior staff members (Optional information)

Preschool Manager: Pippa Eccleston

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Section B Structure, governance and management

Description of the charity’s trusts

Type of governing document

• (eg. trust deed, constitution)

Pre-School Learning Alliance Model CIO Constitution for Childcare Providers 2013, adopted on 12[th] January 2016

How the charity is constituted

• (eg. trust, association, company)

[Trust ]

Trustee selection methods

• (eg. appointed by, elected by)

[Appointed by the current members of the Committee (Trustees) at the AGM ]

Additional governance issues (Optional information)

You may choose to include additional information, where relevant, about:

• policies and procedures adopted for the induction and training of trustees;

• the charity’s organisational structure and any wider network with which the charity works;

• relationship with any related parties;

• trustees’ consideration of major risks and the system and procedures to manage them.

Duxford Preschool is a registered charity that is run by a committee, primarily consisting of parents and carers of children in the setting. It is run as a Charitable Incorporated Organization (CIO). Our constitution requires a minimum of 3 Trustees, who have overall legal responsibility for the preschool.

The AGM often sees committee members stepping down; to ensure consistency for the Preschool, we have implemented a model which sees which the majority of the financial and strategic management carried out by the Preschool Management team, with the Committee offering oversight and governance. The Committee therefore meets once a term (or more frequently as required) to discuss any issues are in regular email contact and work collaboratively with the Preschool Management team. Trustees complete DBS checks in line with statutory requirements and induction and training take place as part of our regular meetings.

The Preschool management structure consists of one Manager, two Deputy Managers, and a Business Manager. The Preschool works regularly with many Cambridge County Council professionals, namely an Early Years Inclusion Advisor and the Local Inclusion Forum Team (consisting of Specialist Teachers, Health Visitors and Social Services representatives). We also attend Early Years Network and Briefing Sessions hosted by the Local Authority. We are additionally supported by an Early Years Improvement Advisor.

Our Preschool is on the site of the Duxford C of E Community Primary School and, although we are a separate body, we regularly meet with the Early Years team at the school to share ideas.

Trustees give their time for free and receive no financial benefit. We are a CIO to reduce the financial liability and risk to trustees. The Preschool policies and procedures are regularly reviewed and amended to reflect changes in best practice as well as statutory guidance. The environment is checked daily for H&S risk and we use risk assessments in relation to trips, activities, and equipment.

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Section C Objectives and activities

Summary of the objects of the charity set out in its governing document Summary of the main activities undertaken for the public benefit in relation to these objects (include within this section the statutory declaration that trustees have had regard to the guidance issued by the Charity Commission on public benefit)

The charity works for the public benefit having as its objects the development and education of children and young people in particular by: (1) promoting their care and safety; (2) promoting their education and promoting parental involvement; (3) promoting their health and wellbeing; (4) providing services to support them and their families and carers; (5) providing services to individuals holding membership of the CIO; and (6) furthering the aims of the Pre-school Learning Alliance.

In all of our work we (the trustees) have regard to the guidance issued by the Charity Commission on public benefit. Our main activity is to deliver, within our fully inclusive setting for 2 ¼ –5-year olds, the Early Year Foundation Stage. In order to do this, we employ childcare managers and practitioners who undertake joint daily planning of activities to meet the needs and interests of the children attending our setting. We deploy a key person approach to ensure that the progress and well-being of all individual children is constantly monitored and feeds into future planning. We ensure that our staff are well trained and hence able to successfully meet the needs of the children in our care. We promote the importance of the learning environment and endeavour to make this as stimulating as possible. We listen to the views of children, parents and staff and use this feedback to inform our improvement work. We accurately assess our children and provide this information to Cambridge County Council as requested. We develop positive relationships with parents and carers and invite them into our setting as observers or helpers. We value all children as individuals and celebrate Britain’s diversity of culture of ethnicity. We help the children in our care to be happy and healthy. We have policies and procedures in place for all aspects of safeguarding, child protection and health and safety, and we use staff training days and meetings to ensure all staff are fluent in these. We follow the recommendations offered by our Cambridge County Council improvement advisor and the guidance available from the Early Years Alliance (formally the Preschool Learning Alliance).

Additional details of objectives and activities (Optional information)

You may choose to include further statements, where relevant, about:

• policy on grantmaking;

• policy programme related investment;

• contribution made by volunteers.

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Section D Achievements and performance

Summary of the main achievements of the charity during the year

Overview

When we started the 2019-2020 academic year, we had no idea that it would prove to be one of the most challenging faced by the current Preschool team and committee. The Preschool operated as normal during the Autumn Term, but as we moved into the Spring Term, we were soon impacted by the COVID-19 pandemic which placed the whole country into Lockdown. Whilst the Preschool was able to remain open in a limited way throughout in providing care to the families of key workers and vulnerable children, this was not without significant work behind the scenes to prepare risk assessments and develop ways of working to minimise and mitigate any risks of both children and staff catching coronavirus. It certainly felt that as soon as one set of guidelines were released and implemented, a new set would be announced! However, the Preschool soon developed a routine and separate ‘bubbles’ allowed us to meet the guidelines whilst offering a small degree of protection if we had a positive case. Thankfully, we managed to make it through the year without having to close either bubble.

Sadly however, on 31st July we received the news that the Preschool/School was on fire, and subsequently lost absolutely everything in the short space of a few hours. It was absolutely devastating to lose the handpicked resources, toys and equipment built up over years and years and to find ourselves “homeless” after the stressful year we had just had. The Local Authority were and continue to be, amazing in their support. They immediately formed a response team to find us alternative accommodation and to cover the costs of most items lost in the fire. Our own insurance only covered £10k of losses, but the replacement of furniture, toys and resources currently stand in the region of £40-45k, whilst we have also incurred significant costs in extra staffing associated with the extra work needed to get the Preschool up and running again. Whilst we have always held reserves specifically to cover any unforeseen losses and/or costs, it has been a great relief to be in a position where we have not had to deplete these. This provides us with a great deal of security for the future. Contractors are currently being appointed to work on a new purpose-built preschool structure, although at this stage we do not know what this is going to look like. There is also a great deal of uncertainty about the licensing/lease arrangements for the current premises as well as the permanent building, but we are hopeful that the future of Duxford Preschool is bright.

Numbers

The preschool started the year at 64% capacity which increased over the terms to 90% by the end of the summer term. Whilst this was not as high as the previous year, this was no doubt due to the impact of Covid-19. 20 children left to move onto reception at the end of the Summer Term which left 20 children continuing into the Autumn Term.

Fees

The committee increased fees slightly to £16.50 per session for 3- and 4-year olds, and to £18 for 2-year olds. This increase goes someway to help cover the increase in costs that we face: the chronic underfunding by the Government of only £4.14 for each funded hour that we provide, continues to pose challenges.

The committee therefore decided to introduce a 50p ‘Fair Funding & Consumables’ supplement for every funded hour accessed at the Preschool. A family accessing the full 15 hours early years education would therefore be invoiced £7.50 per week to help cover the cost of consumables, snack and other costs not intended to be covered by the government funding. Whilst this is a non-compulsory charge (and is not payable by families accessing funded-two or in receipt of EYPP), it is hoped that our families understand the reason behind its introduction, and that their support in paying this that will ensure we can maintain

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Section D Achievements and erformance p

the high standards that the fantastic team at the Preschool set, and we all enjoy.

Staff

This past year has seen a number of changes in the number of staff at the setting; Nicola (Deputy) decided to move to a role closer to her home and we also said goodbye to Danielle and Joanne during the summer. Kayleigh joined us during lockdown to fill the vacant Deputy position, and we carried out recruitment over the summer term and recruited 3 team members to join us once we re-opened following the fire.

Future

Covid-19 continues to pose challenges, not only in our ways of working but in the numbers of children attending the setting. There is a general feeling in the sector that numbers are much lower than usual due to parental uncertainty about their children attending childcare settings during the pandemic, and we are certainly seeing very low numbers. We also potentially face closure due to a positive case in either the children or staff. Whilst we will be able to weather the financial implications of a two-week closure, should this happen multiple times over the year then this will have a significant impact on our finances. Additionally, the continued negotiation regarding the Licence for the use of the mobile unit (and potentially the permanent structure) gives cause for concern. At the time of the fire, we had 5 years remaining on our license which provides us with a degree of security; the new terms of the licence would see us potentially having to renew at the end of each academic year, which is hugely unsettling. Should the Local Authority make the decision to put the use of the new building to ‘tender’ then we would have to apply to use the space with no guarantee that this would be granted. Finally, with 23 out of 31 children due to start Reception at the end of the forthcoming year, we are facing several years with significant cost and low income.

Section E Financial review

Brief statement of the There has been no change to the Preschool’s Reserves Policy which aims to charity’s policy on reserves keep reserves of approximately £33,000; a contingency sum which provides for 1 terms expenditure and redundancy obligations. Following the fire, we received a large number of donations which has resulted in accumulated funds now exceeding the Early Years Alliance recommendation to hold 3 months’ running costs in reserve. Ordinarily we would take measures to reduce these funds by re-investing any surplus back into the charity to further its aims (i.e. to benefit the children). However, we are facing a very challenging year; we do not yet know how the Covid-19 pandemic will impact us and we face the rebuilding of the Preschool on a new permanent site. Additionally, we have significantly low occupancy levels with a high number of children in their final year before starting compulsory education. These higher reserves will therefore offer some security to variable child numbers over the next few years. The Trustees have reviewed these uncertainties and are satisfied that the current level of reserves are sufficient to ensure the continued operation of the Preschool, especially in light of the current pandemic. Details of any funds materially in deficit None.

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Further financial review details (Optional information)

You may choose to include additional information, where relevant about:

• the charity’s principal sources of funds (including any fundraising);

• how expenditure has supported the key objectives of the charity;

• investment policy and objectives including any ethical investment policy adopted.

We ended the 2019-2020 year with an unrestricted surplus of income over expenditure of £18,907. The balance of reserves brought forward on 01/09/19 was £52,119 and the balance carried forward has therefore been increased to £71,026 as of 31/08/20.

Over the period, income totalled £103,275 (2019: £90,825), however it should be noted that that nearly £23,000 of this income was from COVID-19 Grants (£12,434), the pay-out from our insurance claim (£9,900) and donations following the fire on 31[st] July (£446.47). Making an allowance for these extraordinary items, the income from charitable activities was in the region of £90,395.

During the same period, expenditure totalled £84,368 (2016: £91,266) representing a decrease of approximately 7.5% on last year. This was mainly due to reduced spend on consumables, snack, equipment and staffing during the period of partial closure due to COVID-19. It should also be noted that the rent due for the full period has not yet been paid.

Whilst the year ended with a net surplus of £18,907, we move into the 20-21 academic year with significant financial burdens following the fire and face significant risks from loss of income due to COVID-19. It is estimated that the total cost of replacing all resources and equipment lost during the fire will be in the region of £45 - £50,000, together with additional irrecoverable costs of around £7,500. We are extremely fortunate that the Local Authority have been able to claim for the majority of our losses as part of their Insurance and have provided us with alternative temporary accommodation while plans are developed for a permanent building. However, not all costs will be covered by the LA and this surplus will go some way towards covering these. Additionally, we do not yet know the impact that COVID-19 may have on our income and expenditure; we will be operating as one large ‘bubble’ during the coming year which although offers the greatest flexibility to our parents, does pose the biggest risk of closure if we have any positive cases within the staff and/or children. The surplus created from the COVID-19 Grants awarded during the 1920 financial year will thankfully provide us with a degree of security should this occur.

Section F Other optional information

None

Section G Declaration

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees:

Signature(s)

Full name(s) Natalie Hanlon

Position (e.g. Secretary, Chair, etc)[Treasurer for the period ]

Date 27[th] January 2021

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Section B Disclosure

Only complete if the examiner needs to highlight matters of concern (see CC32, Independent examination of charity accounts: directions and guidance for examiners).

Give here brief details of n/a any items that the examiner wishes to disclose .

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DUXFORD PRESCHOOL REGISTERED CHARITY NO 1165461 RECIEPTS AND PAYMENTS FOR THE YEAR TO 31 AUGUST 2020

Notes Unrestricted Restricted Total 2020 £ £ £ Income Early Years Funding 60,587 60,587 Invoiced Fees 15,777 15,777 Early Bird Income 245 245 Forest School Supplement 663 663 DAF & SENIF 500 500 Training Income - - Apprentice Grant - - Fundraising 279 279 Grants - 1,000 1,000 Donations 1,430 1,430 Gift Aid 18 18 Special Events 442 442 COVID-19 Job Retention Scheme 2,434 2,434 COVID-19 Discretionary Grant 10,000 10,000 Insurance Claim Pay-out 9,900 9,900	Total 2019 £ 61,498 20,073 - - 2,386 3,235 500 736 1,311 941 146 - - - -
Total Income 102,275 1,000 103,275	90,825
Less Operating Expenses Wages Pensions PAYE 68,226 68,226 Rent 5,930 5,930 Telephone & Internet 307 307 Website & Email 174 174 Toys & Resources 593 24 617 Furniture & Equipment 539 539 Forest School Equipment 35 35 Art & Craft Consumable 141 141 Snacks & Water Cooler 710 710 Stationery & Postage 692 692 Health & Hygiene Equipment 714 714 Recruitment - - Repairs & Maintenance 219 552 771 End of Term Gifts 177 177 Special Events 539 539 Marketing & Advertising - - Insurance 604 604 Professional Fees 1,249 1,249 DBS Checks 104 104 Subscriptions 72 72 Uniform & Clothing - - Payroll & Accountancy Services 410 410 Staff Training 1,104 1,000 2,104 Fundraising Expenses - - Bank Charges 14 14 Fire Refurbishment Expenses 238 238 Total Operating Expenses 82,792 1,576 84,368 Surplus/Deficit 19,483 (576) 18,907 Cash balances b/f 51,543 576 52,119 Balances c/f 71,026 - 71,026
	75,376
	5,724
	312 160 925 2,113 127 473 954 719 277 - 218 176 130
	12
	705
	820
	384
	75
	-
	274
	1,248
	66
	-
	-
	91,266
	(441)
	52,560
	52,119

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DUXFORD PRESCHOOL REGISTERED CHARITY NO 1165461 STATEMENT OF ASSETS AND LIABILITIES AS AT 31 AUGUST 2020

Notes RESERVES Balance b/f Excess income over expenditure Total reserves CASH FUNDS Current Banking Account Total cash funds LIABILITIES Rent 3 Independent Examination Total liabilities FUNDS OF THE CHARITY Restricted funds 4 Unrestricted funds Total charity funds	2020 £ 52,119 18,907 71,026 71,026 71,026 1,373 150 1,523 - 71,026 71,026	2019 £ 52,560 (411)
		52,119 52,119
		52,119 - -
		- 576 51,543
		52,119

Notes to the accounts for the year ended 31[st] August 2020.

1 ACCOUNTING POLICIES

Basis of Accounting

The financial statements have been prepared on the receipts and payments basis.

Income

All income is included at the time of receipt.

Expenses

All expenditure is accounted for at the time of payment.

2 EQUIPMENT

All equipment purchased by the charity is included under these headings as an expense. No items have been capitalised.

3 RENT

Due to administrative reasons, the landlord did to invoice for rent during the financial year. The Trustees have therefore designated £1,373 of Reserves for this liability.

4 RESTRICTED FUNDS

	Balance			Balance
	1 September	Incoming	Expenditure	31 August
	2019			2020
Cambridge Community Chest	-	1,000	1,000	-
Stansted Passenger Community Fund	576	-	576	-

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