## 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**
1
## 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.
2
## 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.’
3
## 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)
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 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
5
## 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|
|---|---|---|---|
6
## 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)
7
## 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|
8
## 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.
9