2022-07-31-accounts

The Ark Preschool Nursery, Liphook Trustees Report & Statutory Accounts Year Ended 31 July 2022

Registered Charity Number: 1168943

The Ark Preschool Nursery, Liphook Trustees’ Annual Report Year Ended 31 July 2022

Administrative Details

Registered Charity Number: 1168943

Principal office and Address:

The Ark Preschool Nursery, Liphook The Church Centre Portsmouth Road GU30 7DJ

Other Names used: The Ark

Trustees

The Trustees who served during the period were:

Edward Cumming Bruce

Claire Weller

Valentine Inglis-Jones

Henrietta Paterson

Helen Coleman Hilton Carr

Alison Jackson

1

The Ark Preschool Nursery, Liphook Trustees’ Annual Report (Continued) Year Ended 31 July 2022

Chair’s Statement

The Ark has again fulfilled its mission to provide the best possible support to families in its catchment in an increasingly challenging environment. The disruption of the pandemic years has been replaced by increasing financial pressures-both on the families we work with and our own revenues as government support for childcare has failed to keep pace with the increasing costs of provision. This has been reflected in well publicised wholesale closures across the country and increasing challenges in recruiting and retaining staff.

Against this background it is very pleasing that we maintained the quality of the service we provide and achieved a financial breakeven. The staff team, ably led by Lillian Zwarts, have continued to make real impacts in the lives of many children. The Trustees are full of gratitude and respect for their unremitting dedication and enthusiasm.

The Ark receives much additional support from a team of volunteers and the PCC and congregations of Bramshott and Liphook parish, for whose support and prayers we are hugely indebted and grateful.

Edward Cumming Bruce Chairman

2

The Ark Preschool Nursery, Liphook Trustees’ Annual Report (Continued) Year Ended 31 July 2022

Objectives & Activities

The stated Objects of the Charity are:

• 1) The Advancement of education for the public benefit by the provision of a preschool nursery in Liphook in accordance with Christian principles; and

• 2) To make grants for charitable purposes.

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Commission in determining the activities undertaken by the Charity.

Achievements & Performance

Key achievements made in the period were as follows:

• Providing care, education and support to over 60 children in the course of the 2021/22 academic year

• Provision of approximately 70% of pre-school sessions at EYFS rates, providing a key service, free at the point of use, to the local population in an area previously suffering from a shortage of capacity.

• Remaining open throughout the academic year in the face of huge disruption, ensuring the availability of our essential service.

Fundraising

During 2021/22, fundraising activities were adjusted to respond to the realities of working within post pandemic economic environment. This saw families of Children attending the Ark asked to consider making an additional voluntary contribution each term to assist to meeting operational costs.

In line with prior years, the Ark undertook fundraising activity with individuals by way of written correspondence. We have not engaged any third parties to fundraise on our behalf during this period. The Ark is not registered with the Fundraising Regulator but is committed to abide by their Fundraising Code of Practice.

Staff and Trustees are aware of, and sensitive to, data protection issues and safeguarding and applies these principles to protect vulnerable donors. Options remain in place to suppress communications to supporters that are flagged as vulnerable.

During 2021/22, The Ark received no fundraising complaints and no suppression requests from the Fundraising Preference service (FPS).

3

The Ark Preschool Nursery, Liphook Trustees’ Annual Report (Continued) Year Ended 31 July 2022

Financial review

The year ended 31 July 2022 covered the sixth academic year of the Ark and was another that took place in the aftermath of COVID 19. Pleasingly, the preschool was again able to open throughout this academic year to all children on our roster. However the lingering presence of COVID over the winter months, combined with other staffing and cost challenges, ensured this was only achieved through significant additional operational complication and cost burdens.

Despite these difficulties, thanks to continued tight control of expenditure the preschool was again able to continue running sustainably for the entirety of the year, building on the success of the prior periods.

Financial performance was therefore pleasing with a surplus of £681 being recorded (2021: £10.5k surplus).

Income from funded and unfunded sessions in the year was £146,418 (2021:£132,685) with just under 70% of this total coming via funded sessions. This 70% target continued to prove a financially sustainable attendance mix, one with significant public benefit implications. The trustees therefore wish to preserve the session mix within +/- 10% for as long as possible, however it must be noted that, with cost inflation running significantly ahead of uplifts in EYFS rates, this will become more challenging to maintain in the coming periods.

The Ark was approximately 85% full during the year based on floor space capacity. A decline in session numbers has been seen in 2022/23 and, given demographic challenges, it is deemed unlikely that additional capacity will be required in the coming years. The trustees will however continue to actively monitor session capacity requirements.

Voluntary income totalled £2,074 (2021: £22) of which £nil (2021: £nil) was general grant income. No grants under the government’s Job Retention Scheme were received in the period (2021: £2,834).

Total expenditure increased in line with childcare activity and inflation to £146,466 (2021: £122,597). Total staffing costs in the period including temporary staff were £121,373 (2021:£96,410), the growth being reflective of increased session numbers and unusually high rates of sick leave amongst the staff team. Rent of £15,000 (2021: £14,750) and operational supplies at £5,111 (2021: £4,802) were the most significant other costs incurred.

Financial Position

Thanks to the small surplus generated in the period, the financial position of the Charity remained broadly static and Robust. At the period end the

4

The Ark Preschool Nursery, Liphook Trustees’ Annual Report (Continued) Year Ended 31 July 2022

Charity net assets of £69,075 (2021: £68,394). Cash at the bank at 31 July was £69,212 (2021: £69,347).

The 5 Year Interest free Loan of £20,000 received in 2017 from Bramshott and Liphook PCC to provide initial working capital for the Pre-School continued to be repaid in accordance with the terms of the loan. At the year end the total balance outstanding on this loan was £2,689 (2021: £6,686).

Reserves

The trustees are focussed on ensuring that sufficient free reserves are maintained to ensure the smooth continued operation of the preschool. To determine the necessary level of free reserves for the preschool the trustees have assessed the potential financial impact, adjusted for risk and likelihood, of a range of scenarios in which the reserves of the charity would be utilised. Following this review they have agreed that the Ark’s free reserves should be sufficient to cover:

• An income reserve in the event that income fails to achieve budget;

• Short term continuity of service in the event of unforeseen circumstances; and

• Costs of opportunities that may arise which would enable the Ark to further its charitable objectives.

The trustees have calculated free reserves at 31 July 2022 as follows:

Total Funds at 31 July 2022	£69,075
Less total restricted funds	£ (3,522)
Less unrestricted Fixed Assets	£0
Less other commitments	£0
	´
Free Reserves at 31 July 2022	_£_65,553

Free reserves at 31 July 2022 were in line with the minimum requirement identified by the Trustees. In the 2022/23 academic year it is anticipated that these free reserves will be drawn down owing to operational challenges currently being faced. As a result, the trustees will continue to seek to manage the finances of the Preschool in such a way that will increase free reserves over the coming years until they have reached middle of the desired range.

No grants will be awarded by the charity until these desired reserves thresholds are met.

Investment Policy

5

The Ark Preschool Nursery, Liphook Trustees’ Annual Report (Continued) Year Ended 31 July 2022

Taking into account the reserves policy outlined above, the Trustees have decided that to the extent current working capital levels permit, free reserves should be quickly realisable without any risk to their value. All cash funds are therefore to be held in current accounts or interest bearing deposit accounts.

Structure, governance and management

The Ark Preschool is a charitable incorporated organisation located in England and registered with the charity commission. Its governing document is its CIO Foundation Constitution.

Day to day running of the preschool is delegated to the Heads of Preschool and their team of staff. The staff team’s work is overseen by a board of between 4 and 7 Trustees. The Trustees set overall policy and strategic guidelines for the charity. They agree annual operating plans and financial budgets and monitor outcomes against those plans.

The work of the trustees is carried out via bi-monthly formal board meetings.

Trustees are generally appointed for terms of 3 years and cannot serve more than 3 consecutive terms without a break from office. Recruitment is usually by nomination from Bramshott and Liphook PCC. Up to 5 trustees may be nominated by the PCC. There is also one Ex-Oficio Trustee, being the serving rector of the Parish.

The PCC seeks to recruit trustees who have experience of education or who bring needed professional skills in broader areas.

All members of the Board of Trustees give their time voluntarily and receive no benefits from the charity.

Any expenses reclaimed from the charity are set out in the notes to these accounts under the heading “Trustee Remuneration and expenses”. Related party transactions are similarly set out in the notes.

Risk Management

The trustees and staff team conduct a formal annual review of the major risks to which the charity is exposed. Key risk areas are reviewed regularly at board meetings.

The Ark’s procedure for risk assessment is to assess the risk, identify the level of seriousness, the consequence and the mitigating action that can be taken. Detailed procedures are in place to mitigate major risks and they are assessed under the headings of strategic and operational risk.

6

The Ark Preschool Nursery, Liphook Trustees’ Annual Report (Continued) Year Ended 31 July 2022

The Trustees consider that the information they receive, the internal control systems that are established and the regular involvement of the trustees all combine to enable the board to be confident that the major risks to which the charity is exposed are identified and that systems are in place to mitigate those risks to an acceptable level. Risks arising from Covid-19 were identified and addressed via this process. Appropriate insurance is in place to cover all common risks to both people and assets.

Trustee Responsibilities

The Trustees are responsible for preparing the Annual Report and the financial statement in accordance with applicable law and regulations.

Charity law in England and Wales requires the Trustees to prepare financial statements for each financial year. Under the law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charity and group and of the surplus or deficit 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 of the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• follow applicable accounting standards, and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees and signed on their behalf by:

Edward Cumming Bruce

Edward Cumming-Bruce

7

The Ark Preschool Nursery, Liphook Trustees’ Annual Report (Continued) Year Ended 31 July 2022

Trustee

31/05/2023

8

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Independent examiner’s report to the trustees of The Ark PreSchool Nursery, Liphook

I report to the trustees on my examination of the accounts of The Ark Pre-School Nursery, Liphook (the CIO) for the year ended 31 July 2022.

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 carried out under section 145 of the 2011 Act and 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; or

3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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: Thomas Miller

Name: Thomas Miller Address: Flat 20 Levett House, Holman Drive, Southall, UB2 4FT Date: 31 May 2023

9

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Statement of Financial Activities for the Year Ended 31 July 2022

	2022	2022	2022	2021
	Unrestricte	Restricted	Total	Total
	d Funds	Funds	Funds	Funds
	£	£	£	£
Income from:
Donations, Grants and	3,215	-	3,215	22
Events
Job Retention Scheme	-	-	-	2,843
Income
Charitable Activities	146,418	-	146,418	132,865
	---------------	----------------	----------------	----------------
Total Income	149,633	-	149,633	135,730
Expenditure on:
Raising Funds	-	-	-	-
Charitable Activities	146,466	2,486	148,952	125,083
	---------------	----------------	----------------	----------------
Total Expenditure	146,466	2,486	148,952	125,083
	---------------	---------------	-----------------	-----------------
Net Income and	3,167	(2,486)	681	10,647
Expenditure
Reconciliation of
Funds:
Total Funds Brought	62,386	6,008	68,394	57,747
Forward
	---------------	---------------	-----------------	------------------
				-
Total Funds Carried	65,553	3,522	69,075	68,394
Forward
	=======	=======	=======	=======
	====	====	====	=====

All the activities in the above financial years were derived from continuing operations. The Notes on Pages 11 - 17 form part of these accounts

10

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Balance Sheet as at 31 July 2022

	2022	2021
	£	£
Fixed Assets
Tangible Fixed Assets (note	3,522	6,008
8)
Current Assets
Debtors(note 9)	80	381
Cash at Bank	69,212	69,347
Liabilities (note 10)
Due within 1 Year
	(3,739)	(4,652)
Due after more than 1 year
	-	( 2,690
		)
	-------------	-------------
	--	--
Net Assets		68,39
	69,07	4
	5
	=====	=====
	====	====
Funds of the Charity
Unrestricted Funds	65,553	62,386
Restricted Funds	3,522	6,008
	-------------	-------------
	--	--
Total Funds		68,39
	69,07	4
	5
	=====	=====
	====	====

The financial statements and notes on pages 11 - 17 were approved and authorised for issue by the Board of Trustees on 31 May 2023 and signed on its behalf by

11

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Edward Cumming Bruce

Edward Cumming-Bruce Trustee

12

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Notes to the Financial Statements (Continued)

Notes to the Financial Accounts

1) Basis of preparation and Policies

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Ark Preschool Nursery meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The trustees have reviewed the charity’s financial position, reserves and future plans and consider despite the tough operational circumstances currently being faced there are no foreseeable material uncertainties about the Charity’s ability to continue as a going concern and the accounts been prepared on that basis.

Income Recognition

All income is recognised once the Charity has entitlement to income, it is probable will be received and the amount of income receivable can be measured reliably.

Grant Recognition

Grants are recognised in full in the statement of financial activities in the year in which the Charity has entitlement to the income, the amount of income receivable can be measured reliably and there is probability of receipt

Expenditure

Expenditure is accounted for on an accruals basis and includes attributable VAT, which cannot be recovered. Expenditure is allocated to the particular activity where the cost relates directly to that activity. Since operations commenced costs have only been incurred directly for charitable activities, no costs are associated with raising funds.

Governance costs include the cost of governance arrangements which relate to the general running of the Charity, including strategic planning for its future developments, external audit, any legal advice for the Trustees, and all costs of complying with constitutional and statutory requirements, such as the costs of the Trustee meetings and of preparing the statutory accounts and satisfying public accountability. No governance costs have been incurred since operations commenced. In future expenditure not directly attributable to one activity will be apportioned on a suitable basis.

13

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Notes to the Financial Statements (Continued)

Financial Instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Debt instruments are subsequently measured at amortised cost using the effective interest method, subject to materiality.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in winch the initial gain was recognised.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Tangible Fixed Assets

Asset purchases over £500 are considered for capitalisation.

Assets are depreciated on a straight-line basis over 5 years.

Statement of Cash Flows

As a small charity, no statement of cash flow is required.

Fund structure

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

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 of each fund is included in the notes to the financial statements.

Pensions and other post retirement obligations

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contributions due for service, the excess is recognised as a prepayment.

14

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Notes to the Financial Statements (Continued)

2) Income

Income from Donations Grants and Legacies	Income from Donations Grants and Legacies	Income from Donations Grants and Legacies
		2022	2021
		£	£
	Donations	2,074	22
	Fundraising Events	1,141	-
	Grants	-	-
		----------------	----------------
		3,215	22
		========	========
Income from Charitable Activities
		2022	2021
		£	£
sessions	Provision of childcare	146,418	132,865
3) Expenditure on Charitable Activities
		2022	2021
		£	£
sessions	Provision of childcare	148,952	125,083
Breakdown as follows:
		2022	2021
		£	£
	Childcare Stafng costs	121,373	96,410
	Rent	15,000	14,750
	Other Costs	12,579	13,923
		----------------	----------------
		148,952	125,083
		========	========

15

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Notes to the Financial Statements (Continued)

4) Employees and Remuneration

Aggregate payroll costs were as follows:

	2022	2021
	£	£
Wages and Salaries	116,446	95,005
Social security Costs	3,065	-
Pension Contributions	1,862	1,405

No funds were spent on spent on agency staff during the period (2021: £nil).

Social security costs disclosed above are stated net of employment allowance claimed in the periods.

The monthly average number of persons (including the Heads of Pre-School) employed by the Charity during the year expressed as full time equivalents was 5.5 (2021: 4.5)

Heads of pre-school are regarded as the key management personnel. Payments totalling £27,900 were made to individuals with this job title during the year (2021: £27,056). No Trustee received any remuneration during the period for acting in the capacity of a trustee (2021: nil).

No employee received remuneration of over £60,000 in the year (2021: No employee).

5) Trustee Expenses

Trustee expenses in the period totalled £21.92 (2021: £Nil). No costs relating to meeting attendance were claimed.

In addition, the charity paid £75 (2021: £75) for Trustee indemnity insurance.

6) Defned contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £1,862 (2021: £1,405).

16

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Notes to the Financial Statements (Continued)

7) Related Party Transactions

Trustees made no donations to the preschool during the year (2021: £Nil).

Cleone Inglis Jones, the spouse of a Trustee, Valentine Inglis Jones, was employed by the Ark during the year as a Pre-School Assistant. Total payments made to Cleone in the period were £9,304 (2021: £6,808). All terms of employment were identical to non-related parties employed in the same role.

The charity received a £20,000 interest free loan from Bramshott and Liphook PCC during in 2017. This unsecured loan is repayable over 5 years. At 31 July 2022 the total balance outstanding on the loan was £2,690 (2021: £6,686).

The charity paid rental of £15,000 (2021: £14,750) to Bramshott and Liphook PCC during the period for the space from which the playschool operates. The charity made no payments in the period to Bramshott and Liphook PCC (2021: £140) for ad-hoc hire of additional facilities.

8) Fixed Assets Cost: At 01 August 2021 Additions in period -- At 31 July 2022 Depreciation: At 01 August 2021 Charge for year -- At 31 July 2022 Net Book Value: At 31 July 2022 = At 01 August 2021 =	External Equipme nt £ 12,430 - ----------------- 12,430 6,422 2,486 ----------------- 8,908 3,522 ======== 6,007 ======= =	Other Equipme nt £ - - - ---------------- - - - ---------------- - - ======= == - ====== ===	Total £ 12,430 - ----------------- 12,430 6,422 2,486 ----------------- 8,908 3,522 ======= == 6,007 ====== ===

17

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Notes to the Financial Statements (Continued)

9) Debtors

Amounts falling due within one year:

		2022	2021
		£	£
	Trade debtors	80	381
	Other Debtors	-	-
		-------------	-------------
		80	381
		=======	=======
10)	Creditors
Amounts falling due within 1 Year
		2022	2021
		£	£
	Trade Creditors	452	62
	Loan from Related Party	2,690	3,996
	Pension Creditor	589	594
	Other Creditors	8	-
		-------------	-------------
		3,739	4,652
		=======	=======
Amounts falling due in more than 1 year
		2022	2021
		£	£
	Loan from related Party	-	2,690

18

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022

Notes to the Financial Statements (Continued)

11) Movement in Funds

	At	Movement	At
	01 Aug 2021	In year	31 Jul 2022
	£	£	£
Unrestricted Funds	62,386	3,167	65,533
Restricted Funds	6,008	(2,486)	3,522
	---------------------	---------------------	---------------------
Total Funds	68,394	681	69,075
	========	========	=======
	==	==	===
Restricted funds analysis		2022	2021
		£	£
External Play Equipment Fund			3,522
6,008
		=========
========

12) Analysis of Net Assets between Funds

2022

	Restricted	Unrestricte d	Total
	Funds	Fund	Funds
	£	£	£
Fixed Assets	3,522	-	3,522
Current Assets/Liabilities	-	65,533	65,533
Long term Liabilities	-	-	-
	---------------------	---------------------	---------------------
Net Assets	3,522	65,533	69,075
	========	========	=======
	==	==	===
2021
	Restricted	Unrestricte d	Total
	Funds	Fund	Funds
	£	£	£
Fixed Assets	6,008	-	6,008
Current Assets/Liabilities	-	65,076	65,076
Long term Liabilities	-	(2,690)	(2,690)
	---------------------	---------------------
			---------------------
Net Assets	6,008	62,386	68,394
	========	========
	==	==	=======

19

The Ark Preschool Nursery, Liphook Trustees’ Annual Report and Accounts Period Ended 31 July 2022 Notes to the Financial Statements (Continued)

===

20