## 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**
1
## 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.
2
## 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:
- 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.
## **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:
- 6 months of the annual wages costs
- 6 months of the annual rent costs
- General contingency to cover any emergency situations that arise
- Build up reserves to cover a new project.
3
## 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:
- Premises unavailable
- Severe staff illness
- Poor income streams due to economic condition of local area
- Severe weather and disruption to attendance
- Working capital demand due to parent’s paying slowly and covering costs.
- 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)
4
## 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
5
## 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|
|---|---|---|---|
6
## 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)
7
## 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.
8
## 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|
|---|---|---|---|---|
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|
|---|---|---|---|
## **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.
9