## TRUSTEES ANNUAL REPORT 2023-2024 Scallywags Pre-School (Edgworth) Registered as a Charitable Incorporated Organisation Charity No. 1171204 ## Introducton Scallywags Pre-School continues to be a popular choice for early years provision, with high demand and full capacity on most days. Although child numbers in September 2024 are slightly lower than the previous year, more children are attending full-time. Parents predominantly utilise funded hours, and fees have been adjusted in line with inflation to help manage increased operating costs. The team remains committed to providing an outstanding learning environment, incorporating imaginative themes like Halloween, Bonfire Night, Diwali, and much more to engage children’s interests. ## Financial Overview In the financial period ending August 2024, Scallywags Pre-School experienced a slight profit of £531 for this financial year. This downturn is largely attributed to the government-mandated minimum wage increase, which has significantly impacted operating costs. The wage rise from £10.42 to £11.44 per hour and broader inflationary pressures required fee adjustments, including an increase in snack fees to £1.50 per session and sports fees to £4.50. See Separate sheet – End of year Summary from Jenny our Accountant Looking ahead, financial vigilance is essential. The government’s upcoming 6.9% minimum wage increase in April 2025, combined with a hike in National Insurance for employers and the impending lease renewal in 2025, will likely add further financial strain. Scallywags will carefully monitor these expenses and evaluate cost-saving opportunities where possible to maintain financial stability. ## Fundraising and Community Links Our Bedtime Story events, held three times this year, and the Mini Mighty running races in June 2024 raised funds for activity enhancements. These events, organised with committee support, are part of our community engagement and fundraising strategy. Scallywags will continue to host such events and explore new initiatives to raise funds, particularly for outdoor equipment. ## Stafng & Development The Scallywags team is a crucial asset, and we have made adjustments and enhancements to support staff growth: - Elysia and Natalie are advancing in their Level 3 qualifications, with Natalie expected to complete by Christmas 2024 and Elysia by July 2025. - Rachel completed her Level 2 qualification in January 2024 but has opted not to pursue Level 3 at this time. - Fiona left to increase her working hours elsewhere, and we welcomed Amanda for two mornings a week. - Zoe has qualified as a Level 3 Special Educational Needs Coordinator and oversees our WellComm speech and language coordination. We have a well-rounded team, including 1 Manager with Level 6 qualification, 2 Deputies with Level 3 qualifications, 3 staff members with Level 3, and 3 Level 2 staff members. Staff professional development remains a priority, with ongoing training in safeguarding, paediatric first aid, and other essential areas. The Manager and Deputies continue to attend Early Years Network and Safeguarding-SEND meetings, staying aligned with sector standards. ## Governance and Commitee Support The committee remains highly supportive, with notable contributions from Sheila, Trish, and Ashley, who are stepping down this year. Their dedication has been invaluable, and they will be missed as we welcome new trustees. Susan Hodgkiss, the Manager, extends her gratitude to Deputies Linda and Zoe, as well as the entire staff for their creativity and commitment, ensuring that Scallywags remains a nurturing and effective learning environment. ## Future Goals and Recommendatons Looking ahead, Scallywags aims to strengthen its team, maintain parent partnerships, and uphold British values and diversity through embedded cultural capital. Monitoring finances will be crucial in light of anticipated wage and lease increases. Marketing efforts are planned to ensure session attendance remains strong from September 2024. Additionally, Susan and the Treasurer will negotiate lease terms with the school by July 2025, aiming to secure favorable conditions. Scallywags remains committed to supporting the committee in community engagement and fundraising to enhance our facilities and secure resources for ongoing outdoor projects. ## Statement of Trustees’ Responsibilites The constitution specifies the roles and responsibilities of the Trustees, and new trustees will find a copy in their packs. As part of the CIO process, Scallywags adopted the Pre-School Learning Alliance Model CIO Constitution for Childcare Providers 2013. Following the AGM, Scallywags will have eight trustees, with two being parents of children currently attending. Ideally, the constitution encourages at least two-thirds of trustees to be parents of enrolled children. We extend our gratitude to all committee members for their hard work throughout the past year. Susan has been with Scallywags for 11 years as of February 2026. Seven years ago, she was appointed as a trustee, a role approved by the Charities Commission, despite being a paid staff member. Susan also serves as the OFSTED Nominated Person, a position well-suited to her extensive experience and training in childcare and the Early Years Foundation Stage (EYFS). The committee and management team feel confident that Susan is the ideal candidate to continue in this essential role. ## Signed at the Annual General Meet i ng – 14th November 2024 Trustees: November 2024 The committee roles for the upcoming year include: Chairman: Sarah Murphy Secretary: Liz Pycroft Treasurer: Natasha Tierney Marketing Lead: Hannah Todd Fundraising Events: Sarah Tindall Safeguarding Lead: Rhian Driver ## Scallywags Year End Accounts 31[st] August 2024 SUMMARY ## **Gross Income** There isn’t really much change in the gross income, as it has decreased slightly from the previous year, with the Nursery Education Funding showing a decrease of around 4% from the previous year. ## **Payments** Although the gross income has slightly fallen, it is the increase in Administrative costs that has contributed towards only achieving a slight profit of £531 for this financial year. My concern is if the gross profit is budgeted to be in line to recent years, there is no scope whatsoever for any further increase in costs. Given the latest budget increasing minimum wages and ## **Summary** As per the previous year, the current business model has no scope for a rise in costs and this will be an issue for Scallywags Preschool. It is strongly suggested a formal budget is put together by the Nursery Manager to look at ways of increasing the income to counteract the following possible increase in costs: 1. Employers NI to increase to 15% 2. With the Government budget significantly increasing minimum wage this will have a huge impact on the staffing salary structure. If no approved wage increases are given to level 3 staff, who are usually paid 4% above minimum wage, they will then be classed as on minimum wage. Level 2 staff’s minimum wage salary will move up to the same hourly rate as Level 3. This may cause discontent within the nursery amongst Level 2 and Level 3 staff 3. Business rates could potentially increase 4. The lease is due for renewal in September 2025. The business can not currently stand any further increases in rental costs Unless the gross profit is significantly increased then it is almost a definite that the business will be in deficit moving forward ## **Independent examiner's report on the accounts** **Section A Independent Examiner’s Report** **Report to the trustees/** Charity Name **members of** Scallywags Pre-school **Charity On accounts for the year ended**[31][st][ August 2024] **no (if** 1171204 **any) Set out on pages**[1 to 2 (Receipts and Payments Account form CC16a)] ~~CT~~ (remember to include the page numbers of additional sheets) I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31/08/2024 As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”). **Responsibilities and basis of report** I report in respect of my examination of the Trust’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. My role is to state whether any material matters have come to my attention giving me cause to believe: - the accounting records were kept in accordance with section 130 of the Charities Act; or **Independent examiner's statement** • the accounts did not accord with the accounting 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. * _Please delete the words in the brackets if they do not apply._ > **Signed:** L Watson **Date:** 25/10/2024 ~~a~~ ee > **Name:** ~~EEE~~ Linda Watson **Relevant professional qualification(s) or body (if any): Address:** 462 Bolton Road Westhoughton Bolton BL5 3BQ ~~a~~ **Section B Disclosure** Only complete if the examiner needs to highlight material matters of concern (see CC32, Independent examination of charity accounts: directions and guidance for examiners). **Give here brief details of any items** NONE **that the examiner wishes to disclose** .