The Ark Preschool Nursery, Liphook Trustees Report & Statutory Accounts Year Ended 31 July 2024 Registered Charity Number: 1168943 The Ark Preschool Nursery, Liphook Trustees, Annual Report Year Ended 31 July 2024 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 (resigned 12 September 2023) Valentine Inglis-jones Henrietta Paterson Helen Coleman Hilton Carr Alison Jack50n (resigned 12 September 20231 Nicola Parrott {appointed 12 September 2023) Jacqueline Taylor (appointed 12 September 20231 The Ark Preschool Nursery, Liphook Trustees. Annual Report {Continued) Year Ended 31 July 2024 Chair's Statement After a difficult period in 2022/3 the latest year saw The Ark flourishing again. Under Cleone Inglis- Jones, inspiring and enthusiastic guidance. the team has been rebuilt and much increased numbers of children reflect the fantastic service that The Ark provides the Liphook community. Reports from the nearby primary school to which most of our children move on, confirm the Trustees conviction that The Ark's 'graduates' are better prepared for the next stage of their education than many and that the Pre-school makes a significant positive impact on many young lives. Our financial position was also much improved and we have been able to rebuild reserves that were depleted during the challenging years before. The trustees were also delighted to be able to make an additional indirect contribution to our wider community by making a significant additional services contribution to the Bramshott and Liphook Church post period end. in recognition of additional costs borne by the church to support the Ark in recent years. It was the Church's vision to start the Ark and it has been a great partner with us over many year5 as well as a supportive landlord. We are optimistic that by the end of the 2024/5 year free reserves will be approaching a level where the Trustees can consider making grant payments to Support youth provision in the parish. These achievements do not happen on their own and we are, as ever, indebted to the hard work and commitment of the staff team and many generous volunteers and supporters. We thank them. Edward Cumming Bruce Chairman The Ark Preschool Nursery, Liphook Trustees, Annual Report {Continued) Year Ended 31 July 2024 Ob'ectives & 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 50 children in the course of the 2023124 academic year Provision of approximately 70Yo 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. The nursery will seek to match or exceed these performance marks during the 2024/25 academic year. Fundraisin 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 2023124, The Ark received no fundraising complaints and no suppression requests from the Fundra ising Preference service {FPS). The Ark Preschool Nursery, Liphook Trustees, Annual Report (Continued) Year Ended 31 July 2024 Financial review Financial Performance The 2023/24 academic year saw the Ark return to sustainable trading, recogni5ing a surplus of E19,82212023: £15,503 deficit). This turnaround was driven primarily by growth in pupil and session numbers, combined reduction in staff costs following a restructure. Sustainable trading is expected to continue in the following period despite challenges faced in the early years sector. Financial Position The balance sheet of the charity ha5 been strengthened by trading performance in the period, with Net Assets growing to £73,394. Liquidity has likewise improved, leaving the charity in a comfortable operating position. 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 resenies 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 Ark Preschool Nursery, Liphook Tru5tees' Annual Report (Continued) Year Ended 31 July 2024 The trustees have calculated free reserves at 31 July 2024 as follows: Total Funds at 31 July 2024 £73,394 Less total restricted funds Less unrestricted Fixed Assets Less other commitments Free Reserves at 31 July 2024 Free reserves at 31 July 2024 were in line with the minimum requirement identified by the Trustees. In the 2024125 academic year it is anticipated that these free resenies will grow slightly but remain at the lower end of the required range. 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 the middle of the desired range. No grants will be awarded by the charity until these desired reserves thresholds are met. Investment Poli Taking into account the reserves policy outlined above, the Trustees have decided that to the extent current working capital levels permit, free resenies 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 overnance and mana ement 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 Head of Preschool and her 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. The Ark Preschool Nursery, Liphook Trustees, Annual Report {Continuedl Year Ended 31 July 2024 The Trustee5 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 Trustee ty0512025 The Ark Preschool Nursery, Liphook Trustees, Annual Report {Continued) Year Ended 31 July 2024 Risk Mana ement 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. 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. Appropriate insurance is in place to cover all common risks to both people and asset5. Trustee Res onsibilities 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 statement5 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 Ark Preschool Nursery, Liphook Trustees, Annual Report and Accounts Period Ended 31 July 2024 Independent examinerfs report to the trustees of The Ark Pre-school 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 2024. 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(51{b) of the Act. Independent examinerfs 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: 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 Vie￿ 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: Matthew Elkins FCA Knox Cropper LLP Chartered Accountants Office Suite I, Haslemere House Lower Street Haslemere Surrey GU27 2PE Date: The Ark Preschool Nursery, Liphook Trustees, Annual Report and Accounts Period Ended 31 July 2024 Statement of Financial Activities for the Year Ended 31 July 2024 2024 Unrestricted Funds 2024 Restricted Funds 2024 Total Funds 2023 Total Funds Income from: Donations, Grants and Events Charitable Activities 2,293 145,714 6,528 8,821 145,714 1,902 131,280 Total Income 148,007 6,528 154,535 133,183 Expenditure on: Raising Funds Cha ritable Activitie5 127,149 7.564 134,713 148,686 Total Expenditure 127.149 7,564 134,713 148,686 Net Income and Expenditure 20,858 {1,0361 19,822 (15,503) Reconciliation of Funds: Total Funds Brought Forward 52,536 1,036 53,572 69,075 Total Funds Carried Forward 73,394 73.394 53,572 All the activities in the above financial years were derived from continuing operations. The Notes on Pages 11- 17 form part of these accounts The Ark Preschool Nursery, Liphook Trustees. Annual Report and Accounts Period Ended 31 July 2024 Balance Sheet a5 at 31 July 2024 2024 2023 Fixed Assets Tangible Fixed Assets {note 81 1,036 Current Assets Debtors (note 9) Cash at Bank 2,682 71,847 1,075 51,881 Liabilities (note 10) Due within l Year Due after more than l year (1,135) (420) Net Assets 73.394 53,572 Funds of the Charity Unrestricted Funds Restricted Funds 73,394 52,536 1,036 Total Funds 73.394 53,572 The financial statements and notes on pages 11- 17 were approved and authorised for issue by the Board of Trustees on4 May 2025 and signed on its behalf by Edward Cumming-Bruce Trustee io The Ark Preschool Nursery, Liphook Trustees, Annual Report and Accounts Period Ended 31 July 2024 Notes to the Financial Statements {Continued) Notes to the Financial Accounts i) Basis of re aration 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 IFRS 1021 (effective l January 20191- (Charities SORP IFRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). The Ark Preschool Nursery meets the Llefinition 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 poliry note{s). The trustees have reviewed the charity's financial position, reserve5 and future plans and consider despite the tough operational circumstances currently being faced there are no foreseeable material uncertainties about the Charit¢s ability to continue as a going concern and the account5 been prepared on that basis. Income Reco nition 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 Reco nition 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 enditure 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 relate5 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. li The Ark Preschool Nursery, Liphook Trustees, Annual Report and Accounts Period Ended 31 July 2024 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 a55ets 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. Tan ible Fixed Assets Asset purchases over £500 are considered for capitalisation. Assets are depreciated on a straight-line basis over 5 year5. 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 purpose5 Wlthin 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 ost retirement obli ation5 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. 12 The Ark Preschool Nursery. Liphook Trustees, Annual Report and Accounts Period Ended 31 July 2024 Notes to the Financial Statements (Continued) 2) Income Income from Donations Grants and Legacies 2024 2023 Donations Fundraising Events Grants 2,177 116 6,528 1,902 8.821 1,902 Income from Charitable Activities 2024 2023 Provision of childcare sessions 145,714 131.280 enditure on Charitable Activities 2024 2023 Provision of childcare sessions 134,713 148,686 Breakdown as follows." 2024 2023 Childcare Staffing costs Rent Other Costs 100.402 15,000 19,311 120,288 15,000 13,398 134.713 148,686 13 The Ark Preschool Nursery. Liphook Trustees, Annual Report and Accounts Period Ended 31 July 2024 Notes to the Financial Statements (Continued) ees and Remuneration Aggregate payroll costs were as follows: 2024 2023 Wages and Salaries Social security Costs Pension Contributions 97,965 451 1,462 108,915 505 1,772 £nil was spent on agency staff during the period12023: £9,096). 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 4.512023: 5) Head of pre-school is regarded as the key management personnel. Payments totalling £25,363 plus £573 of employers pension contributions were made to individuals with this job title or equivalent responsibilities during the year12023- £31,542 plus £759). No Trustee received any remuneration during the period for acting in the capacity of a trustee {2023: nil). No employee received remuneration of over £60,￿0 in the year12023: No employee). 5) Trustee Ex enses Trustee expenses in the period totalled £nil (2023: £nill. No costs relating to meeting attendance were claimed. In addition, the charity paid £1￿](2023. £80) forTrustee indemnity insurance. 6) Defined contribution ension 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 £1,462 (2023: £1,772). 14 The Ark Preschool Nursery, Liphook Trustees, Annual Report and Accounts Period Ended 31 July 2024 Notes to the Financial Statements (Continued) 7) Related Part Transactions Trustees made no donations to the preschool during the year12023: £Nill. Cleone Inglis Jones, the spouse of a Trustee, Valentine Inglis Jones, was employed by the Ark during the year, initially as a Pre-school Assistant before becoming acting Deputy Head and eventually Head of Preschool post year end. Total payments made to Cleone in the period were £24,360 plus £544 of employers pension contributions12023: £15,941 plus £291). All terms of employment have been approved by the Charity Commission. The charity paid rental of £15,000 (2023: £15,000) 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 PCC12023: £nill for ad-hoc hire of additional facilities. Helen Coleman, a Trustee, invoiced the charity £2,874 for SENCO Consultancy se￿ices in the period {2023: £1,393). No payments were made in relation to her performance of her role as a Trustee. 8) Fixed Assets External ui Other ui Total Cost: At 01 August 2023 Additions in period 12,430 12,430 At 31 July 2024 12,430 12,430 reciation: At 01 August 2023 Charge for year 11,394 1,036 11,394 1,036 At 31 July 2024 12,430 12,430 Net Book Value: At 31 July 2024 At 01 August 2023 1,036 1.036 15 The Ark Preschool Nursery, Liphook Trustees, Annual Report and Accounts Period Ended 31 July 2024 Notes to the Financial Statements (Continued) 9) Debtors Amounts falling due within one year: 2024 2023 Trade debtors other Debtors 1,969 713 764 311 2,682 1,075 io) Creditors Amounts falling due within l Year 2024 2023 Trade Creditors Loan from Related Party Pension Creditor other Creditors 84 420 1.051 1,135 420 16 The Ark Preschool Nursery, Liphook Trustees, Annual Report and Accounts Period Ended 31 July 2024 Notes to the Financial Statements (Continued) ii) Movement in Funds At 01 Aug 2023 Movement In year At 31 Jul 2024 Unrestricted Funds Restricted Funds 52,536 1,036 20,858 (1,036) 73,394 Total Funds 53,572 19,822 73,394 Restricted funds analysis 2024 2023 External Play Equipment Fund 1,036 1,036 12) Analysis of Net Assets between Funds 2024 Restricted Funds Unrestricted Fund Total Funds Fixed Assets Current AssetslLiabilities Long term Liabilities 73,394 73,394 Net Assets 73,394 73,394 2023 Restricted Funds Unrestricted Fund Total Funds Fixed Assets Current AssetslLiabilities Long term Liabilities 1,036 1,036 52,536 52,536 Net Assets 1,036 52,536 53,572 17