**Charity Registration No. 1173000**
## SQUIRRELS PRE-SCHOOL CIO
# ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2020
## SQUIRRELS PRE-SCHOOL CIO
## LEGAL AND ADMINISTRATIVE INFORMATION
|**Trustees**|Jodie Epps (Resigned 23 January 2020)|
|---|---|
||Isabelle Gollogly|
||Hayley Galvin (Resigned 4 November 2020)|
||Lola Cary|
||Melanie Hillier (Appointed 4 November 2020)|
|**Charity number**|1173000|
|**Registered office**|St Stephen's Infant School|
||Hales Drive|
||Canterbury|
||Kent|
||CT2 7AB|
|**Independent examiner**|M Wilkes FCA|
||Azets Audit Services|
||Delandale House|
||37 Old Dover Road|
||Canterbury|
||Kent|
||CT1 3JF|
|**Key management personnel**|Isabelle Gollogly|
||Jodie Epps|
||Hayley Galvin|
||Lola Cary|
||Kean Harris|
## SQUIRRELS PRE-SCHOOL CIO
## CONTENTS
|||**Page**||
|---|---|---|---|
|Trustees' report|1|-|3|
|Independent examiner's report||4||
|Statement of financial activities||5||
|Balance sheet||6||
|Notes to the financial statements|7|-|12|
## SQUIRRELS PRE-SCHOOL CIO
## TRUSTEES' REPORT
## FOR THE YEAR ENDED 29 FEBRUARY 2020
The trustees present their report and financial statements for the year ended 29 February 2020.
The trustees confirm that the Annual Report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) (effective 1 January 2015) as amended by Update Bulletin 1 (effective 1 January 2015).
## OBJECTIVES AND ACTIVITIES
## _**a. Policies and objectives**_
The Squirrels is a community led pre-school, which provides care and education for children aged 2.5 to school age.
## _**b. Activities for achieving objectives**_
The pre-school is led by a manager and a well qualified staff team who follow the current guidance and support from the local authority. The children are our priority and at the centre of the pre-school
## _**c. Main activities undertaken to further the charity's purposes for the public benefit**_
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.
## ACHIEVEMENTS AND PERFORMANCE
## _**a. Review of activities**_
The past year saw 34 (2019: 35) children on our register with 29 (2019: 27) moving onto the Infant School at the end of the school year. (Not sure if you need this bit of info, saw it on our previous accounts)
We used the EYPP funding to purchase resources/ materials that supports each child's interest/ needs, like: trikes, role play toys, balance motor bikes, some sensory items (eg. balance board) and we had the Creepy Claws Roadshow come
## FINANCIAL REVIEW
The pre-school's income for the year was £85,648 (2019 - £111,905 (although this included a £25,015 donation from the previous entity)) and mainly consisted of Early Years Funding from Kent County Council.
Expenditure for the year was £79,089 (2019 - £82,357). This led to a surplus of income over expenditure of £6,559 (2019 - £29,548).
Net assets of the pre-school were £36,107 at 29 February 2020 against an amount of £29,548 at 28 February 2019.
## _**a. Going concern**_
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
## _**b. Reserves policy**_
The trustees keep the reserves needs of the charity continually under review. The Trustees have determined that the appropriate level of free reserves necessary for the efficient management of the charity should be £20,000 (i.e. approximately three months normal expenditure).
All funds are unrestricted and totalled £36,107 at the year end (2019 - £29,548).
Page 1.
## SQUIRRELS PRE-SCHOOL CIO
## TRUSTEES' REPORT FOR THE YEAR ENDED 29 FEBRUARY 2020
## _**c. Post Balance Sheet Events**_
Our main future plan is to get the building and outdoor maintenance done especially the drainage as we have problems with flooding when the weather gets bad.
We also want to get our website up and running again.
## _**d. Covid-19**_
During the Covid-19 pandemic we were closed for awhile in the lockdown, as we had no critical worker families or vulnerable children. During this time we did not need to furlough our staff as we were still receiving the funding from KCC. We re-opened part-time in June 2020 for the children starting Infant School in September 2020. We opened as normal in September 2020 and we have 25 children on our register at the moment.
Financially, the Covid-19 pandemic has made very little impact on us. As we are a pre-school, we rely mainly on funded children and the funding has continued. We have noticed less children on our register for 2020/21 then previous years but we hope more will join in January 2021.
## STRUCTURE, GOVERNANCE AND MANAGEMENT
## _**a. Constitution**_
Squirrels pre-school CIO is governed by its Constitution dated 11 May 2017. It became a registered charity on 11 May 2017.
## _**b. Method of appointment or election of Trustees**_
The management of the charity is the repsonsibility of the trustees who are elected and coopted under the terms of the constitution.
## _**c. Policies adopted for the induction and training of Trustees**_
New Trustees are given training by the Trustees and given a tour of the Pre-School. Specific responsibilities for Trustee roles and repsonsibilities are documented and handed to new Trustees
## _**d. Organisational structure and decision making**_
There are four appointed trustees who are responsible for the management of the pre school. Day to day responsibility has been delegated to the pre school manager.
All major decisions are voted on by the trustees.
Key management personnel are the trustees together with Jean Harris, the pre school manager.
## _**e. Risk management**_
The trustees have assessed the major risks to which the charity is exposed, in particular those related to operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
Page 2.
## SQUIRRELS PRE-SCHOOL CIO
## TRUSTEES' REPORT FOR THE YEAR ENDED 29 FEBRUARY 2020
## TRUSTEES' RESPONSIBILITIES STATEMENT
The trustees are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 that disclose with reasonable accuracy at any time the financial position of the charity 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.
This report was approved by the Trustees on 2020 and signed on their behalf by:
**I Gollogly** Trustee
Page 3.
## SQUIRRELS PRE-SCHOOL CIO
## INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SQUIRRELS PRESCHOOL CHARITABLE INCORPORATED ORGANISATION ("the CIO") FOR THE YEAR ENDED 29 FEBRUARY 2020
I report to the charity trustees on my examination of the accounts of the CIO for the year ended 29 February 2020.
## **Responsibilities and basis of report**
As the charity's 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 excamination of the CIO's accounts carried out under section 145 of the 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 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 that in any material respect:
- accounting records were not kept in respect of the Company as required by section 130 of the Act; or
- the accounts do not accord with those records; or
- the accounts do not comply with the accounting 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 financial statements to be reached.
## **M A Wilkes (FCA)**
## **Azets Audit Services**
Delandale House, 37 Old Dover Road, Canterbury, Kent, CT1 3JF
Date:
Page 4.
## SQUIRRELS PRE-SCHOOL CIO
## STATEMENT OF FINANCIAL ACTIVITIES
## FOR THE YEAR ENDED 29 FEBRUARY 2020
|**Notes**
**Income from:**
Donations and legacies
Charitable activities - School fees
Investments - Bank account interest
**Total income**
**Expenditure on:**
Charitable activities
**2**
**Net movement in funds**
**Fund balances**
At 1 April 2019
**At 31 March 2020**|**Unrestricted**
**funds**
**2020**
**£**
**238**
**85,410**
**-**
**85,648**
**79,089**
**6,559**
**29,548**
**36,107**|Unrestricted
funds
2019
_(as restated)_
**£**
25,184
86,660
61
111,905
82,357
29,548
-
29,548|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Page 5.
## SQUIRRELS PRE-SCHOOL CIO
## BALANCE SHEET
## AS AT 31 MARCH 2020
|**Notes**
**Fixed assets**
Tangible assets
**6**
**Current assets**
Other debtors
Cash at bank and in hand
**Creditors: amounts falling due**
**within one year**
**7**
Net current assets
**Net assets**
**Funds**
Unrestricted funds|**2020**
**£**
**-**
**37,196**
**37,196**
**(1,578)**|**2020**
**£**
**489**
**35,618**
**36,107**
**36,107**
**36,107**|2019
_(as restated)_
£
2,670
26,974
29,644
(750)|2019
_(as restated)_
£
654
28,894
29,548
29,548
29,548|
|---|---|---|---|---|
The financial statements were approved by the Trustees on December 2020.
**I Gollogly** Trustee
Page 6.
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2020
## **1. Accounting policies**
## **1.1 Basis of preparation of financial statements**
The charity constitutes a public benefit entity as defined by FRS 102. 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 (FRS 102) issued on 16 July 2014, the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015 updated for bulletin 1.
The financial statements are prepared on a going concern basis under the historical cost convention.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
The Trustees do not consider the impact of Covid-19 will affect the charity's ability to continue as a going concern.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Fees for tuition are recognised in the period that care and education have been provided.
## **1.5 Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
Charitable activities comprise those costs incurred by the charitable company in the delivery of its activities and for its beneficiaries. It includes both costs allocated directly to such services activities and those costs of an indirect nature necessary to support them.
## **Support costs allocation**
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs. They are allocated on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on the basis of estimates of the proportion of time spent by staff on those activities.
Page 7.
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS
## FOR THE YEAR ENDED 29 FEBRUARY 2020
## **1. Accounting policies (continued)**
## **1.6 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
## **1.7 Tangible fixed assets**
Assets costing £500 or more are capiytalised as tangible fixed assets and are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful economic lives on the following bases:
Other fixed assets - 20% reducing balance; Computers - 33% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the Statement of Financial Activities.
## **1.7 Operating leases**
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
## **1.8 Financial instruments**
The has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**1.9 Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**1.10 Corporation Tax**_
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## _**1.11 Retirement benefits**_
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Page 8.
## SQUIRRELS PRE-SCHOOL CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2020
## **1. Accounting policies (continued)**
## _**1.11 Critical accounting estimates and judgements**_
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Page 9.
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS
## FOR THE YEAR ENDED 29 FEBRUARY 2020
|**2.**
**Expenditure on charitable activity:**
**_Pre-school education_**
**Direct costs**
Staff costs
Depreciation
Activity costs
Rent
Repairs and maintenance
Share of support costs (see note 3)
Share of governance costs - Independent Examiners Fee
**3.**
**Support costs**
Depreciation
Insurance
Telephone
Postage and stationery
Subscriptions
Donations
Bank charges
Training|**2020**
**£**
**63,336**
**80**
**1,298**
**7,500**
**2,572**
**74,786**
**3,528**
**775**
**79,089**
**2020**
**£**
**85**
**1,045**
**1,251**
**694**
**130**
**20**
**20**
**283**
**3,528**|2019
_(as restated)_
£
66,947
100
936
8,563
1,467
78,013
3,480
864
82,357
2019
£
125
1,035
1,010
640
35
**-**
**-**
635
3,480|
|---|---|---|
## **4. Trustees**
One of the trustees has been paid remuneration from an employment with the pre-school. The staff trustee only receives remuneration in respect of services they provide undertaking the role as administrator under their contract of employment, and not in respect of their services as a trustee.
The value of trustees' remuneration is as follows:
I Gollogly (Administrator)
- Remuneration - £1,236 (2019: £nil)
- Employer's pension contribution - £nil (2019: £nil)
No other trustees received any remuneration, benefits or received reimbursed of expenses in either the current or previous year.
Page 10.
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2020
## **5. Employees**
|**Number of employees**
The average monthly number of employees during the year was:
Charitable activities
**Employment costs**
Wages and salaries
National Insurance
Other pension costs|**2020**
**number**
**6**
**2020**
**£**
**60,883**
**2,174**
**279**
**61,162**|2019
number
6
2019
_(as restated)_
£
64,298
2,348
301
64,599|
|---|---|---|
There were no employees whose annual remuneration was £60,000 or more.
The remuneration of the key management personnel totalled £18,247 (2019: £17,742).
## **6. Tangible fixed assets**
## **7.**
|**Cost**
At 1 March 2019
**At 29 February 2020**
**Depreciation**
At 1 March 2019
Charge for the year
**At 29 February 2020**
**Net book value**
**At 29 February 2020**
At 28 February 2019
**Creditors: amounts falling due within one year**
Other creditors|**Other fixed**
**assets**
**£**
500
**500**
100
80
**180**
**320**
400|**Computers**
**£**
379
**379**
125
85
**210**
**169**
254
**2020**
**£**
**1,578**
**1,578**|**Total**
**£**
879
**879**
225
165
**390**
**489**
654
2019
£
750
750|
|---|---|---|---|
Page 11.
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS
## FOR THE YEAR ENDED 29 FEBRUARY 2020
## **8. Related party transactions**
There were no related party transaction in the year (2019 - None).
## **9. Pension contributions**
The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £663 (2019: £509). Contributions totalling £nil (2019: £nil) were payable to the fund at the balance sheet date.
## **10. Commitments under operating leases**
At 29 February 2020 the charity had future minimum lease payments under non-cancellable operating leases not later than one year of £7,500 (2019: £7,500) and later than one year but not later than 5 years of £22,500 (2019: £30,000).
## **11. Post balance sheet events**
Subsequent to the period end, governments in Europe, China, the UK and elsewhere have taken unprecedented measures to suppress the spread of Covid-19. The Trustees have assessed the operational and financial impact on the charity in the Trustees’ Annual Report on page 2 and in the going concern statement at note 1.2.
## **12. Prior year adjustment**
The accounts are restated to incorporate the impact of a misclassification of a debtor as expenditure for wages and salaries.
The change has resulted in general reserves at 28 February 2019 increasing by £2,670.
Summary of the prior year accounting treatment: Increase in Other debtors of £2,670.
Reduction in Expenditure -Wages and salaries of £2,670.
Prior year adjustment - Increase of general reserves of £2,670.
Page 12.