Sowood Pre-School and Community Association
Charity number 1166047
Annual Report and Financial Statements
for the year ended 31 August 2022
Sowood Pre-School and Community Association
Annual Report and Financial Statements for the year ended 31 August 2022
| 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 Accountancy Service CIO
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Sowood Pre-School and Community Association
Trustees' report for the year ended 31 August 2022
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 Malcolm James Chair Elizabeth Whyte Secretary Caroline Remmers Treasurer Charity number 1166047 Registered in England and Wales Registered and principal address Bankers Sowood Community Centre National Westminster Bank Plc Stainland Road 1 Waterhouse Street Sowood Halifax Halifax HX1 1JA HX4 9HY
Independent examiner
Simon Bostrom FCIE West Yorkshire Community Accountancy Service CIO
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 2022
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:
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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
After our inadequate Ofsted (The Office for Standards in Education) we were at risk of losing all of our funding, however our parents/carers stood by us, contacting the council and after we made some changes it was agreed we would receive funding for existing children already in receipt of EEF. We continued to care for the children at preschool while undertaking additional training as required. Where we felt that a child would benefit from early education, we self funded a place. In June 2022 we were re-inspected and are now a good rated setting, and we can now take new children.
We have and had a high percentage of children with SEN (Special educational needs) in our care, our setting allows children to access a good, inclusive early education. We have positive links with outside agencies, including ASD teams, portage and speech and language team.
Financial review
The net payments for the year were £18,665, including net payments of £7,421 on unrestricted funds and net payments of £11,244 on restricted funds after transfers.
Given the financial position the Trustees are in discussion with officers of Calderdale Council, seeking support to help us through the present difficulties.
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.
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Sowood Pre-School and Community Association
Trustees' report (continued) for the year ended 31 August 2022
Reserves policy
The charity's free reserves, excluding fixed assets, at the year end were £36,919.
The policy stated that a contingency fund or reserve should be held to cover any eventualities that could arise within the setting. The appropriate level was set at 3 -6 months running costs.
This is made up of four elements:
Annual wages costs
Annual rent costs
General contingency to cover any emergency situations that arise.
Build up reserves to cover a new project
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.
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.
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.
Approved by the board of trustees on 27 February 2023
Malcolm 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
I report to the charity trustees on my examination of the accounts of the CIO for the year ended 31 August 2022, 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.
Simon Bostrom FCIE
3 March 2023
West Yorkshire Community Accountancy Service CIO
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 2022
| Notes 2022 Unrestricted funds £ Receipts Grants and donations (2) 51 Pre-school fees 12,237 Fundraising 1,478 Milk funding 149 Uniform income - Hall hire 14,068 Total receipts 27,983 Payments Salaries 15,751 Payroll fees 488 Resources and supplies - Printing, stationery and advertising 1,126 Professional fees and subscriptions 995 Utilities 10,151 Repairs and maintenance 189 Telephone 372 Caretaking 1,272 Insurance 863 Food and beverages 2,042 Community centre consumables 867 Milk 172 Staff training - Fundraising costs 47 Other expenditure 340 Uniform - Independent examination 480 Computer costs 249 Total payments 35,404 Net movement in funds (7,421) Fund balances brought forward 44,340 Fund balances carried forward (3) 36,919 |
2022 Restricted funds £ 49,213 - - - - - 49,213 57,476 - 1,959 - - - - - - - - - - 1,022 - - - - - 60,457 (11,244) 13,969 2,725 |
2022 Total funds £ 49,264 12,237 1,478 149 - 14,068 77,196 73,227 488 1,959 1,126 995 10,151 189 372 1,272 863 2,042 867 172 1,022 47 340 - 480 249 95,861 (18,665) 58,309 39,644 |
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 |
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Sowood Pre-School and Community Association
Statement of assets and liabilities
| as at 31 August 2022 2022 Unrestricted £ Cash funds Cash at bank 36,794 Cash in hand 125 Total cash funds 36,919 Amounts owed to the charity Accrued income Prepayments Assets retained for the charity's own use Printers Laptops Various play equipment and furniture Liabilities Accruals Creditors |
2022 Restricted £ 2,725 - 2,725 |
2022 Total £ 39,519 125 39,644 £ 476 694 1,170 £ 600 1,225 1,825 |
2021 Total £ 58,270 39 58,309 |
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The financial statements were approved by the board of trustees on 27 February 2023
Malcolm James (Trustee)
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Sowood Pre-School and Community Association
Notes to the accounts
for the year ended 31 August 2022
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 2022
| 2 Grants and donations Calderdale Council Department for Education (DfE) Community Foundation for Calderdale HM Revenue and Customs Other donations 3 Restricted funds Balance b/f £ Lloyds Bank plc 607 Early Education Funding 13,362 Inclusion funding - EYPP & Deprivation - DfE Apprentice fund - 13,969 |
2022 Unrestricted funds £ - - - - 51 51 Receipts £ - 36,408 8,766 2,539 1,500 49,213 |
2022 Restricted funds £ 47,713 1,500 - - - 49,213 Payments £ - 49,770 8,766 1,874 47 60,457 |
2022 Total funds £ 47,713 1,500 - - 51 49,264 Transfers £ - - - - - - |
2021 Total funds £ 73,456 - 600 2,403 578 77,037 Balance c/f £ 607 - - 665 1,453 2,725 |
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Fund name
Purpose of restriction
Lloyds Bank plc Early Education Funding Inclusion funding
EYPP & Deprivation
Apprentice fund
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).
To provide hot meals, extra sessions and resources to help learning and development of children from low income families. Towards apprenticeship training and assessment.
4 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.
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