Sowood Pre-School and Community Association
Charity number 1166047
Annual Report and Financial Statements
for the year ended 31 August 2020
Sowood Pre-School and Community Association
Annual Report and Financial Statements for the year ended 31 August 2020
| Contents | Page |
|---|---|
| Trustees' report | 2 to 4 |
| Examiner's report | 5 |
| Receipts and payments account | 6 |
| Statement of assets and liabilities | 7 |
| Notes to the accounts | 8 to 9 |
Prepared by West Yorkshire Community Accounting Service
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Sowood Pre-School and Community Association
Trustees' report for the year ended 31 August 2020
Reference and administrative details of the charity, its trustees and advisors
The trustees during the financial year and up to and including the date the report was approved were: Name Position Dates
Position Dates Malcolm Graham James Chair Elizabeth Whyte Secretary Caroline Remmers Treasurer Joy Crowther Resigned October 2019
Charity number
The charity was registered with the Charity Commission for England and Wales, number 1166047
Principal address
Bankers
Sowood Community Centre National Westminster Bank Plc Stainland Road 1 Waterhouse Street Sowood Halifax Halifax HX1 1JA HX4 9HY
Independent examiner
Helen Galvin FCCA
West Yorkshire Community Accounting Service
Stringer House 34 Lupton Street Leeds LS10 2QW
Structure, governance and management
The charity is a Charitable Incorporated Organisation (CIO) formed on 14 March 2016 and is governed by a constitution as amended on the 7 February 2020.
Method of recruitment and appointment of trustees
The trustees of the charity are appointed by the members at the AGM.
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Sowood Pre-School and Community Association
Trustees' report (continued) for the year ended 31 August 2020
Objectives and activities
The charity's objects
The charity is established for the public benefit to further or benefit the residents of Calderdale, without distinction of sex, sexual orientation race or of political, religious or other opinions by associating together the said residents and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure time occupation with the objective of improving the conditions of life for the residents. The objects of the charity include the development and education of children and young people in particular by:
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1) promoting their care and safety;
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2) promoting their education and promoting parental involvement;
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3) promoting their health and wellbeing;
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4) providing services to support them and their families and carers;
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5) providing services to individuals holding membership of the CIO; and
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6) furthering the aims of the pre-school learning alliance.
The charity's main activities
We provide affordable and good quality childcare and early years education.
- We look after the running and up-keep of Sowood Community Centre and promote it’s use by other local groups in the community.
Public benefit statement
In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular the advancement of education.
Achievements and performance
We provide early years education for children in the community.
We promote the use of the community centre by local groups.
Our purchase of the building / lease is still ongoing. The legal fee related to the solicitors looking into clauses and terms.
Financial review
The net payments for the year were £17,579, including net payments of £3,885 on unrestricted funds and net payments of £13,694 on restricted funds.
Reserves policy
The charity's free reserves at the year end were £52,848.
The Charity Commission guidance states that “a reserves policy is necessary to ensure that the charity manages its cash, liquid assets and debt” i.e. treasury management. The charity could be holding reserves that are too high or too low for its needs”.
Expected level of reserves:
Our expected level of reserves at September 2020 is £40,000 - £50,000
This is made up of four elements:
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6 months of the annual wages costs
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6 months of the annual rent costs
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General contingency to cover any emergency situations that arise
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Build up reserves to cover a new project.
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Sowood Pre-School and Community Association
Trustees' report (continued) for the year ended 31 August 2020
Reserves policy (continued)
The level of reserves as a minimum must be reviewed annually to ensure that it is at a level that is appropriate to current needs.
As the Pre-school capacity is busy at most sessions, we are currently operating at our planned level at which case; we should maintain the above reserves.
Should the settings income stream (funded and fees) or expenditure (wages, rent, running costs, resources) exceed or fall well below the budgeted levels, then the reserves required will need to be re-established based on the cash flow requirements.
It is very difficult to plan for contingencies but our policy is to try and cover what risks we could face:
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Premises unavailable
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Severe staff illness
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Poor income streams due to economic condition of local area
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Severe weather and disruption to attendance
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Working capital demand due to parent’s paying slowly and covering costs.
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Government closure
A build up reserves process will occur as our expected income v expenditure delivers a surplus to which we can add these funds to. The committee will then decide long term under business planning the best use of these reserves to benefit the setting.
Coronavirus impact statement
We have suffered a substantial loss of income due to the Covid-19 pandemic and it is expected that this position is unlikely to change significantly before September 2021.
Projections of the receipts and payments indicate that the organisation can recover from this position, but there remain substantial uncertainties ahead. There is no clear understanding of the impact on the economy related to unemployment resulting from the pandemic, or the general economic position that will evolve following our leaving the European Union. The ongoing Pre-School children numbers could be substantially affected by either or both of these factors.
The other income streams are expected to be very likely to return to the former position once social activities are back to normal.
In terms of going concern, the trustees have reassessed the charity’s ability to continue for at least 12 months from the date that the accounts are approved and conclude that no material uncertainties exist that cast significant doubt on the charity's ability to meet its liabilities as they fall due.
Signed on behalf of the board of trustees:
Signed: M.G James Date: 25 January 2021
Name: Malcolm G James (Trustee)
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Sowood Pre-School and Community Association
Independent examiner's report to the trustees of Sowood Pre-School and Community Association Charitable Incorporated Organisation ('the CIO')
I report to the charity trustees on my examination of the accounts of the CIO for the year ended 31 August 2020, which are set out on pages 6 to 9.
Responsibilities and basis of report
As the charity trustees of the CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the CIO's accounts as carried out under section 145 of the 2011 Act. 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 giving me cause to believe that in any material respect:
1 accounting records were not kept in respect of the CIO as required by section 130 of the Act; or 2 the accounts do not accord with those records.
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.
Signed: H. R. Galvin Name: Helen R Galvin
Relevant professional qualification or body: FCCA
Date: 9 February 2021
West Yorkshire Community Accounting Service
Stringer House 34 Lupton Street Leeds LS10 2QW
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Sowood Pre-School and Community Association
Receipts and payments account for the year ended 31 August 2020
| Notes 2020 Unrestricted funds £ Receipts Grants and donations (2) 10,067 Pre-school fees 5,957 Fundraising 499 Milk funding 250 Uniform income 19 Hall hire 7,340 Other income 7 Funds transferred from Pre-School 2,228 Funds transferred from Sowood Community Centre 60 Total receipts 26,427 Payments Salaries (3) 20,643 Payroll fees 134 Resources and supplies 585 Printing, stationery and advertising 472 Professional fees 1,464 Utilities 3,724 Repairs and maintenance 313 Telephone 180 Caretaking 608 Insurance 418 Food and beverages 632 Community centre consumables 100 Milk 101 Staff training 131 Fundraising costs 82 Other expenditure 76 Uniform - Independent examination 456 Computer costs 193 Total payments 30,312 (3,885) Fund balances brought forward 56,733 Fund balances carried forward (4) 52,848 Net (payments) / receipts |
2020 Restricted funds £ 49,113 - - - - - - - - 49,113 44,394 219 1,137 771 3,132 7,607 1,011 294 992 682 1,481 164 166 212 - 124 - - 421 62,807 (13,694) 21,101 7,407 |
2020 Total funds £ 59,180 5,957 499 250 19 7,340 7 2,228 60 75,540 65,037 353 1,722 1,243 4,596 11,331 1,324 474 1,600 1,100 2,113 264 267 343 82 200 - 456 614 93,119 (17,579) 77,834 60,255 |
2019 Total funds £ 49,940 15,297 1,519 397 72 11,293 - 84,000 - 162,518 69,396 349 2,962 1,271 1,977 7,360 3,861 432 1,400 - 2,553 129 355 358 434 278 114 300 - 93,529 68,989 8,845 77,834 |
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Sowood Pre-School and Community Association
Statement of assets and liabilities
| as at 31 August 2020 2020 Unrestricted £ Cash funds Cash at bank 52,792 Cash in hand 56 Total cash funds 52,848 Other monetary assets Pre-School fees outstanding Prepaid Insurance Assets retained for the charity's own use Two printers Laptop Various play equipment and furniture Liabilities Npower Various supplier invoices outstanding Independent examination Pension EEF Autumn term funding received in advance |
2020 Restricted £ 7,407 - 7,407 |
2020 Total £ 60,199 56 60,255 £ 145 458 603 £ 3,063 1,216 456 152 6,667 11,554 |
2019 Total £ 77,727 107 77,834 |
|---|---|---|---|
Approval of the accounts
The financial statements were approved by the board of trustees on
Date: 25 January 2021
Signed: M.G James
Name: Malcolm G James (Trustee)
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Sowood Pre-School and Community Association
Notes to the accounts
for the year ended 31 August 2020
1 Accounting policies
Basis of accounting
The trustees have taken advantage of section 133 of the Charities Act 2011 and have prepared the accounts on a receipts and payments basis.
There has been no change to the accounting policies since last year.
No changes have been made to the accounts for previous years.
Taxation
As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.
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 subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
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Sowood Pre-School and Community Association
Notes to the accounts continued
for the year ended 31 August 2020
| 2 Grants and donations CMBC - Children & Young People Services CMBC - Discretionary grant HMRC - Coronavirus Job Retention Scheme Donations 3 Staff costs and numbers Gross salaries Social security costs Employment allowance Pensions |
2020 Unrestricted funds £ - 10,000 - 67 10,067 |
2020 Restricted funds £ 44,940 - 4,173 - 49,113 |
2020 Total funds £ 44,940 10,000 4,173 67 59,180 2020 £ 64,286 1,974 (1,974) 751 65,037 |
2019 Total funds £ 49,819 - - 121 49,940 2019 £ 68,682 2,649 (2,649) 714 69,396 |
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The average number employees during the year was 6, being an average of 4.4 full time equivalent (2019: 6, 4.4 FTE ) There were no employees with emoluments above £60,000.
| Defined contribution pension scheme Costs of the scheme to the charity for the year Amount of any contributions outstanding at the year end 4 Restricted funds Balance b/f £ Lloyds Bank plc 922 CMBC - Early Education Funding 20,179 HMRC - Coronavirus Job Retention Scheme - CMBC - Dcatch - 21,101 |
Incoming £ - 44,400 4,173 540 49,113 |
2020 £ 751 152 Outgoing £ 182 57,912 4,173 540 62,807 |
2019 £ 714 143 Balance c/f £ 740 6,667 - - 7,407 |
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Fund name Purpose of restriction
Lloyds Bank plc To create a sensory garden CMBC - Early Education Funding HMRC - Coronavirus Job Retention Scheme CMBC - Dcatch
For the supply of free early years provision for 2 to 4 year olds For staff who have been furloughed due to Covid-19 To pay for a one to one worker for a child with disabilities or additional needs
5 Trustee expenses
No trustee received any expenses during this year or the previous year.
6 Trustee remuneration and benefits
No trustee received any remuneration or benefit during this or the previous year.
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