REGISTERED COMPANY NUMBER: CE007636 (England and Wales) REGISTERED CHARITY NUMBER: 1167843
Trustees' Report and
Unaudited Financial Statements for the Year Ended 31 August 2022
for
Little Angels (Borehamwood) Pre-School
Harvine Consultants Ltd Square Root Business Centre 102 - 116 Windmill Road Croydon Surrey CR0 2XQ
Little Angels (Borehamwood) Pre-School
Contents of the Financial Statements for the Year Ended 31 August 2022
| Page | |||
|---|---|---|---|
| Trustees' Report | 1 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | to | 7 |
| Notes to the Financial Statements | 8 | to | 11 |
Little Angels (Borehamwood) Pre-School
Trustees' Report for the Year Ended 31 August 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Significant Activities and Achievements
1.COVID-19 PANDEMIC
The setting continued to work alongside covid cases we had a short period in January 2022 where staff shortages due to covid cases caused the setting to partially close for 2 weeks.
2. STAFF
We have had a higher staff turnover than usual for the second year running, this is reflected across the sector. All staff who had left have been replaced to cover ratios.
3. TRAINING
All staff received inhouse Trauma and Attachment training, this continued throughout the year. We completed Elklan training which was cascaded to all staff and we received communication friendly status. 3 staff completed their Level 3 childcare training. Other courses staff completed included Word Aware, Closing the Gap, Room Leader training, Behaviour, Ofsted Inspection training, Transitions, Outdoor Learning, Science Technology Engineering and Maths (STEM), Storytelling and Boys will be Boys.
4. CHILDREN
Our number remained healthy this year.
5. EVENTS
Events included grandparents stay and play and sponsored obstacle course,due to covid cases rising at the time our Nativity was recorded and sent out to parents. We also had World Book Day, mums stay and play, egg hatching, picnic and sports day, bring your pet to school week and dads to school. Also, our summer picnic fell during the heatwave, so we invited everyone to preschool for music and ice lollies instead.
6. FUTURE
Our development plan includes for next year: To develop a clear curriculum with progression of skills.
To develop a consistent approach to assessment recording across all staff. To support staff to challenge children's learning during free play.
FINANCIAL REVIEW
Financial position
Financial Report
During the 12 months from 1st September 2021 to 31st August 2022 income received was £228,224 and expenditure was £235,786 with a deficit of £7,562. For the previous 12 month period there was a surplus of £17,179. These figures are on an accrued basis. Cash at bank and in hand at 31st August 2022 was £98,745 up by £4,441 on the £94,304 at 31st August 2021. Ordinarily this deterioration in the result would be the cause of concern. The underlying position is better shown by the modest increase in bank and cash funds which demonstrates a breakeven situation in spite of the considerable inflation in salaries as we align with Living Wage norms and also a legal ruling concerning holiday pay for workers who do not ordinarily work for the whole year. It was while amending the accounting methodology to recognise the legal change that the calculation for holiday pay paid in advance at year end was recognised as too high. A more conservative calculation for 2022 has produced a one-off increase in accrued wage costs in excess of £10,000. Thus, if the same methodology had been applied in 2021 and 2022, the 2022 would have shown a modest surplus.
Reserves policy
The general recommendation of the Charity Commission is that charities should carry reserves of two to three months expenditure. Monthly expenditure is £15,000 so this means £30,000-£45,000. The Committee decided last year that this should be increased from £30,000 to £45,000 to provide greater security in difficult times and this amount is maintained.
Page 1
Little Angels (Borehamwood) Pre-School
Trustees' Report for the Year Ended 31 August 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes a Charitable Incorporated Organisation.
Decision making
The key management functions are performed by the officers and other members of the committee.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
CE007636 (England and Wales)
Registered Charity number
1167843
Registered office
12 Furzehill Avenue Borehamwood WD6 2DF
Trustees
Rev. David Aplin BA FCCA Chair Natasha Nwosu (resigned 3.10.22) Sarah Ryder Denise Digweed Treasurer Caroline Davis (resigned 3.10.22) Sophie Perkins Toni Ryder Secretary Charlotte Goldsobel Shira Goldstein-Filarski (appointed 3.10.22)
Company Secretary
Toni Ryder
Independent Examiner
Harvine Consultants Ltd Square Root Business Centre 102 - 116 Windmill Road Croydon Surrey CR0 2XQ
Page 2
Little Angels (Borehamwood) Pre-School
Trustees' Report for the Year Ended 31 August 2022
REFERENCE AND ADMINISTRATIVE DETAILS Advisers
Bankers
Metro Bank Borehamwood Shopping Park 3E, 25 Theobald Street Borehamwood WD6 4PR
Barclays Bank plc 197 Shenley Road Borehamwood WD6 1AR
TRUSTEES' RESPONSIBILITY STATEMENT
The trustees (who are also the directors of Little Angels (Borehamwood) Pre-School for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charity SORP;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees on 26 June 2023 and signed on its behalf by:
D G Aplin (Sep 4, 2023 17:06 GMT+1)
Rev. David Aplin BA FCCA - Trustee
Page 3
Independent Examiner's Report to the Trustees of Little Angels (Borehamwood) Pre-School
Independent examiner's report to the trustees of Little Angels (Borehamwood) Pre-School ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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.
Harvine Consultants
Harvine Consultants (Sep 4, 2023 19:04 GMT+1)
Harvine Consultants Limited
Harvine Consultants Ltd Square Root Business Centre 102 - 116 Windmill Road Croydon Surrey CR0 2XQ
26 June 2023
Page 4
Little Angels (Borehamwood) Pre-School
Statement of Financial Activities
for the Year Ended 31 August 2022
| Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM Income 228,224 EXPENDITURE ON Charitable activities Governance costs 218,377 Other resources expended 6,609 Other Support Costs 6,469 Other 4,331 Total 235,786 NET INCOME/(EXPENDITURE) (7,562) RECONCILIATION OF FUNDS Total funds brought forward 108,605 TOTAL FUNDS CARRIED FORWARD 101,043 |
Restricted fund £ - - - - - - - - - |
31.8.22 Total funds £ 228,224 218,377 6,609 6,469 4,331 235,786 (7,562) 108,605 101,043 |
31.8.21 Total funds £ 226,182 |
|---|---|---|---|
| 187,355 4,906 7,049 9,693 |
|||
| 209,003 | |||
| 17,179 91,426 |
|||
| 108,605 |
The notes form part of these financial statements
Page 5
Little Angels (Borehamwood) Pre-School
Balance Sheet
31 August 2022
| Unrestricted funds Notes £ CURRENT ASSETS Debtors: amounts falling due within one year 5 4,742 Cash at bank and in hand 98,745 103,487 CREDITORS Amounts falling due within one year 6 (2,444) NET CURRENT ASSETS 101,043 TOTAL ASSETS LESS CURRENT LIABILITIES 101,043 NET ASSETS 101,043 FUNDS 7 Unrestricted funds TOTAL FUNDS |
Restricted fund £ - - - - - - - |
31.8.22 Total funds £ 4,742 98,745 103,487 (2,444) 101,043 101,043 101,043 101,043 101,043 |
31.8.21 Total funds £ 15,258 94,304 109,562 (957) 108,605 108,605 108,605 108,605 108,605 |
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 6
continued...
Little Angels (Borehamwood) Pre-School
Balance Sheet - continued
31 August 2022
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 26 June 2023 and were signed on its behalf by:
D G Aplin (Sep 4, 2023 17:06 GMT+1)
Rev. David Aplin BA FCCA - Trustee
Denise Digweed (Sep 4, 2023 18:54 GMT+1)
Denise Digweed - Trustee
The notes form part of these financial statements
Page 7
Little Angels (Borehamwood) Pre-School
Notes to the Financial Statements for the Year Ended 31 August 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Governance costs
Includes salary costs of £140,303.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
2. TRUSTEES' REMUNERATION AND BENEFITS
No pecuniary or other benefit was received from the CIO by any trustee in respect of the year to 31 August 2022 other than the reimbursement of agreed and approved expenses, wholly, exclusively and necessarily for the benefit of the CIO.
An insurance policy is in place to protect the trustees, or any of them, against personal liability arising from their actions as Trustees of the CIO.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.
continued...
Page 8
Little Angels (Borehamwood) Pre-School
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
3. PAYMENT OF SALARIES
Salary cost amount to £165,225. Staff work 39 weeks per annum and are credited with 4.6 weeks holiday entitlement. Thus they are paid for 43.6 weeks. However, they prefer to be paid at a regular rate throughout the 52 weeks so their total yearly salary is paid over 52 weeks. The payment year starts in April and until the long Summer holiday they are paid less than their work hours but by September payments are ahead of earnings. These accounts show the effect of paying for the long Summer holiday and £14,258 has been paid in advance at 31 August 2021.
4. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | Restricted | Total | ||
|---|---|---|---|---|
| funds | fund | funds | ||
| £ | £ | £ | ||
| INCOME AND ENDOWMENTS FROM | ||||
| Income | 226,182 | - | 226,182 | |
| EXPENDITURE ON | ||||
| Charitable activities | ||||
| Governance costs | 187,355 | - | 187,355 | |
| Other resources expended | 4,906 | - | 4,906 | |
| Other Support Costs | 7,049 | - | 7,049 | |
| Other | 9,693 | - | 9,693 | |
| Total | 209,003 | - | 209,003 | |
| NET INCOME | 17,179 | - | 17,179 | |
| RECONCILIATION OF FUNDS | ||||
| Total funds brought forward | 91,426 | - | 91,426 | |
| TOTAL FUNDS CARRIED FORWARD | 108,605 | - | 108,605 | |
| 5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||
| 31.8.22 | 31.8.21 | |||
| £ | £ | |||
| Debtors | 302 | 371 | ||
| Net salaries unearned | 3,367 | 12,647 | ||
| Paye unearned | 199 | 748 | ||
| Pension paid unearned | 230 | 863 | ||
| Prepayments | 644 | 629 | ||
| 4,742 | 15,258 |
continued...
Page 9
Little Angels (Borehamwood) Pre-School
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Social security and other taxes Pension on increase Derferred income Accrued expenses MOVEMENT IN FUNDS Unrestricted funds General fund Reserve fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Reserve fund TOTAL FUNDS |
At 1.9.21 £ 63,605 45,000 108,605 108,605 Incoming resources £ 228,224 228,224 At 1.9.20 £ 46,426 45,000 91,426 91,426 |
31.8.22 31.8.21 £ £ 1,130 - 773 - 91 537 450 420 2,444 957 Net movement At in funds 31.8.22 £ £ (7,562) 56,043 - 45,000 (7,562) 101,043 (7,562) 101,043 Resources Movement expended in funds £ £ (235,786) (7,562) (235,786) (7,562) Net movement At in funds 31.8.21 £ £ 17,179 63,605 - 45,000 17,179 108,605 17,179 108,605 |
|---|---|---|
7. MOVEMENT IN FUNDS
continued...
Page 10
Little Angels (Borehamwood) Pre-School
Notes to the Financial Statements - continued for the Year Ended 31 August 2022
7. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 226,182 226,182 |
Resources Movement expended in funds £ £ (209,003) 17,179 (209,003) 17,179 |
Resources Movement expended in funds £ £ (209,003) 17,179 (209,003) 17,179 |
|---|---|---|---|
| 17,179 |
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund Reserve fund TOTAL FUNDS |
At 1.9.20 £ 46,426 45,000 91,426 91,426 |
Net movement in funds £ 9,617 - 9,617 9,617 |
At 31.8.22 £ 56,043 45,000 |
|---|---|---|---|
| 101,043 | |||
| 101,043 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 454,406 454,406 |
Resources Movement expended in funds £ £ (444,789) 9,617 (444,789) 9,617 |
Resources Movement expended in funds £ £ (444,789) 9,617 (444,789) 9,617 |
|---|---|---|---|
| 9,617 |
8. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 August 2022.
Page 11