2021-08-31-accounts - Sowood Pre-School And Community Association

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Sowood Pre-School and Community Association

Charity number 1166047

Annual Report and Financial Statements

for the year ended 31 August 2021

Sowood Pre-School and Community Association

Annual Report and Financial Statements for the year ended 31 August 2021

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

Sowood Pre-School and Community Association

Trustees' report for the year ended 31 August 2021

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 Malcolm James Chair Elizabeth Whyte Secretary Caroline Remmers Treasurer

Charity number

The charity was registered with the Charity Commission for England and Wales, number 1166047, on 14 May 2016.

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.

Sowood Pre-School and Community Association

Trustees' report (continued) for the year ended 31 August 2021

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.

To develop and educate 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 have been able to provide a space for community and children's groups to use where their normal venues have been closed or unable to offer public use.

We have continued to provide early years education and childcare for children and have been able to provide free school meals and vouchers in the holidays thanks to extra funding we received.

Financial review

The net payments for the year were £1,946, including net payments of £8,508 on unrestricted funds and net receipts of £6,562 on restricted funds.

At the time of signing these accounts the charity has been impacted by the global Covid-19 virus. 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.’

Sowood Pre-School and Community Association

Trustees' report (continued) for the year ended 31 August 2021

Reserves policy

The charity's free reserves, excluding fixed assets, at the year end were £44,340.

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 is £40,000 - £50,000.

This is made up of four elements:

6 months of the annual wages costs
6 months of the annual running costs
General contingency to cover any emergency situations that arise
Build up reserves to cover a new project.

This will enable us to fund any shortfalls in income, if income does not reach expected levels.

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.

The preschool roll has increased slightly for 2021 but we remain cautious as Covid-19 is still affecting our running

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.

Signed on behalf of the board of trustees on 11/3/2022

M. G. James (Trustee)

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 2021, 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: …………………………………… Name: Helen Galvin FCCA

15/3/2022

West Yorkshire Community Accounting Service

Stringer House 34 Lupton Street Leeds LS10 2QW

Sowood Pre-School and Community Association

Receipts and payments account for the year ended 31 August 2021

Notes 2021 Unrestricted funds £ Receipts Grants and donations (2) 15,151 Pre-school fees 11,835 Fundraising 444 Milk funding 162 Uniform income 204 Hall hire 1,385 Other income - Funds transferred from unincorporated charities - Total receipts 29,181 Payments Salaries (3) 23,918 Payroll fees 340 Resources and supplies 2,238 Printing, stationery and advertising 678 Professional fees and subscriptions 248 Utilities 6,559 Repairs and maintenance 1,027 Telephone 291 Caretaking 785 Insurance 424 Food and beverages 467 Community centre consumables 74 Milk 95 Staff training 183 Fundraising costs 44 Other expenditure 29 Uniform 96 Independent examination 193 Computer costs - Total payments 37,689 (8,508) Fund balances brought forward 52,848 Fund balances carried forward (4) 44,340 Net (payments) / receipts	2021 Restricted funds £ 61,886 - - - - - - - 61,886 41,107 340 1,578 680 179 6,559 1,026 289 785 424 1,567 74 94 182 45 36 96 263 - 55,324 6,562 7,407 13,969	2021 Total funds £ 77,037 11,835 444 162 204 1,385 - - 91,067 65,025 680 3,816 1,358 427 13,118 2,053 580 1,570 848 2,034 148 189 365 89 65 192 456 - 93,013 (1,946) 60,255 58,309	2020 Total funds £ 59,180 5,957 499 250 19 7,340 7 2,288 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

Sowood Pre-School and Community Association

Statement of assets and liabilities

as at 31 August 2021 2021 Unrestricted £ Cash funds Cash at bank 44,301 Cash in hand 39 Total cash funds 44,340 Other monetary assets Hall hire Prepaid insurance Assets retained for the charity's own use Two printers Laptops Various play equipment and furniture Liabilities Independent examination Printing and advertising Pension Utilities Caretaking Payroll fees	2021 Restricted £ 13,969 - 13,969	2021 Total £ 58,270 39 58,309 £ 1,145 494 1,639 £ 480 203 160 265 130 58 1,296	2020 Total £ 60,199 56 60,255

Approval of the accounts

The financial statements were approved by the board of trustees on 11/3/2022

M. G. James (Trustee)

Sowood Pre-School and Community Association

Notes to the accounts continued

for the year ended 31 August 2021

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.

2 Grants and donations Calderdale Council HM Revenue and Customs Community Foundation for Calderdale Donations 3 Staff costs and numbers Gross salaries Social security costs Employment allowance Pensions	2021 Unrestricted funds £ 14,573 - - 578 15,151	2021 Restricted funds £ 58,883 2,403 600 - 61,886	2021 Total funds £ 73,456 2,403 600 578 77,037 2021 £ 64,172 2,342 (2,342) 853 65,025	2020 Total funds £ 54,940 4,173 - 67 59,180 2020 £ 64,286 1,974 (1,974) 751 65,037

The average number employees during the year was 5.9, being an average of 4.3 full time equivalent (2020: 6, 4.4 FTE). There were no employees with emoluments above £60,000.

Defined contribution pension scheme	2021	2020
	£	£
Costs of the scheme to the charity for the year	853	751
Amount of any contributions outstanding at the year end	160	152

Sowood Pre-School and Community Association

Notes to the accounts continued

for the year ended 31 August 2021

4 Restricted funds

Lloyds Bank plc Early Education Funding Inclusion funding CFFC Grant HMRC JRS EYPP & Deprivation

Fund name

Lloyds Bank plc Early Education Funding Inclusion funding

CFFC Grant

HMRC JRS EYPP & Deprivation

Balance b/f £ 740 6,667 - - - - 7,407	Incoming £ - 53,326 3,180 600 2,403 2,377 61,886	Outgoing £ 133 46,631 3,180 600 2,403 2,377 55,324	Transfers £ - - - - - - -	Balance c/f £ 607 13,362 - - - - 13,969

Purpose of restriction

To create a sensory garden.

For the supply of free early years provision for 2 to 4 year olds. To provide one to one support and resources for children with Special Educational Needs and Disability (SEND).

Towards providing food vouchers for some of our families to buy meals during the Easter holidays.

For staff who have been furloughed due to Covid-19. To provide hot meals, extra sessions and resources to help learning and development of children from low income families.

5 Related party transactions

Trustee expenses

No trustee received any expenses during this year or the previous year.

Trustee remuneration and benefits

No trustee received any remuneration or benefit during this or the previous year.