Charity Registration No. 1173000
## SQUIRRELS PRE-SCHOOL CIO
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
## SQUIRRELS PRE-SCHOOL CIO
## CONTENTS
||**Page**|
|---|---|
|Reference and administrative details|1|
|Trustees' report|2 – 3|
|Independent examiner's report|4|
|Statement of financial activities|5 - 6|
|Balance sheet|7|
|Notes to the financial statements|8 – 13|
## SQUIRRELS PRE-SCHOOL CIO
## LEGAL AND ADMINISTRATIVE INFORMATION
## **Trustees**
**Charity number Registered office**
Lola Cary Isabelle Gollogly Melanie Hillier 1173000 Squirrels Pre School CIO Hales Drive Canterbury Kent CT2 7AB
## **Independent examiner**
M Wilkes FCA Azets Audit Services 2[nd] Floor 32-33 Watling Street Canterbury Kent CT1 2AN
**Key management personnel**
Lola Cary Isabelle Gollogly Melanie Hillier Jean Harris
Page 1
SQUIRRELS PRE-SCHOOL CIO
## TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023
The trustees present their report and financial statements for the year ended 31 August 2023.
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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
## OBJECTIVES AND ACTIVITIES
## _**a) Policies and objectives**_
Squirrels Preschool CIO 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 35 (2022: 34) children on our register with 23 (2022: 21) moving onto the Infant School at the end of the school year.
We have had Creepy Crawlies come out to us for a visit. We do themed activity weeks and have parties for Christmas and end of academic year.
## FINANCIAL REVIEW
The pre-school's income for the 12 month period was £91,337 (2022 18 months - £115,553) and mainly consisted of Early Years Funding from Kent County Council.
Expenditure for the year was £109,189 (2022 18 months - £129,813). This led to a deficit of £17,852 (2022 deficit - £14,260).
Net assets of the pre-school were £10,234 at 31 August 2023 (2022 - £28,086).
## _**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 £10,000 (2022 - £20,000).
Unrestricted funds at 31 August 2023 amounted to £9,199 (2022: £27,494). Restricted funds at 31 August 2023 amounted to £1,035 (2022 - £592).
Total funds at 31 August 2023 amounted to £10,234 (2021 - £28,086).
Page 2
SQUIRRELS PRE-SCHOOL CIO
## TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2023
## _**c) Post Balance Sheet Events**_
We are still waiting for KCC to repair the cladding on the building. We have raised this with our ongoing lease negotiations with KCC.
## 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 responsibility of the trustees who are elected and co-opted 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 responsibilities are documented and handed to new Trustees
## _**d) Organisational structure and decision making**_
There are three 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.
## 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 9 May 2024 and signed on their behalf by:
I Gollogly Trustee
Page 3
SQUIRRELS PRE-SCHOOL CIO
## INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SQUIRRELS PRE-SCHOOL CIO FOR THE YEAR ENDED 31 AUGUST 2023
I report to the charity trustees on my examination of the accounts of the CIO for the year ended 31 August 2023 as set out on pages 5 to 13.
## 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 examination 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
2[nd] Floor 32 – 33 Watling Street Canterbury Kent CT1 2AN
Date: 13 May 2024
Page 4
## SQUIRRELS PRE-SCHOOL CIO
## STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023
|**Notes**
**Income from:**
Charitable activities:
School fees
**Total income**
**Expenditure on:**
Charitable activities
**3**
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**12m to 31.8.23**
**£**
5,777
5,777
24,072
(18,295)
27,494
9,199|**Restricted**
**funds**
**12m to 31.8.23**
**£**
85,560
85,560
85,117
443
592
1,035|**Total**
**funds**
**12m to 31.8.23**
**£**
91,337
91,337
109,189
(17,852)
28,086
10,234|**Total**
**funds**
**18m to 31.8.22**
**£**
115,553
115,553
129,813
(14,260)
42,346
28,086|
|---|---|---|---|---|
The statement of financial activities includes all gains and losses recognised in the period.
All income and expenditure derive from continuing activities.
Page 5.
## SQUIRRELS PRE-SCHOOL CIO
## STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023
## Comparative year information Period ended 31 August 2022
|**Notes**
**Income from:**
Donations and grants:
Charitable activities:
School fees
**Total income**
**Expenditure on:**
Charitable activities
**3**
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**18m to 31.8.22**
**£**
5,900
5,900
20,752
(14,852)
42,346
27,494|**Restricted**
**funds**
**18m to 31.8.22**
**£**
109,653
109,653
109,061
592
-
592|**Total**
**funds**
**18m to 31.8.22**
**£**
115,553
115,553
129,813
(14,260)
42,346
28,086|
|---|---|---|---|
Page 6.
## SQUIRRELS PRE-SCHOOL CIO
## BALANCE SHEET
## AS AT 31 AUGUST 2023
|**Notes**
**Fixed assets**
Tangible assets
**7**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling**
**due within one year**
**8**
Net current assets
**Net assets**
**The funds of the charity:**
Restricted funds
**12**
Unrestricted funds
**13**|**2023**
**£**
11,957
11,957
(5,001)|**2023**
**£**
3,278
6,956
10,234
1,035
9,199
10,234|2022
**£**
26,083
26,083
(2,152)|2022
**£**
4,155
23,931
28,086
592
27,494
28,086|
|---|---|---|---|---|
The financial statements were approved by the trustees on 9 May 2024 and signed on their behalf by:
## I Gollogly
Trustee
Page 7.
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
## 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 and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
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.
## **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 is recognised at the time of the donation.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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.
## **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.
Page 8
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS
## FOR THE YEAR ENDED 31 AUGUST 2023
## 1. Accounting policies (continued)
## **1.7 Tangible fixed assets**
Assets costing £500 or more are capitalised 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: Equipment, fixtures and fittings - 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.
## **1.8 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.
## **1.9 Financial instruments**
The charity 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.
## **1.10 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. All expenses are inclusive of irrecoverable VAT.
## **1.11 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.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## 2. 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 31 AUGUST 2023
## **3. Analysis of Expenditure**
**==> picture [441 x 249] intentionally omitted <==**
**----- Start of picture text -----**
Staff Direct Support Total Total
costs costs costs 12m to 31.8.23 18m to 31.8.22
£ £ £ £ £
Charitable activity
Provision of care
70,309 31,195 7,685 109,189 129,813
and education
Support costs 12m to 31.8.23 18m to 31.8.22
£ £
Depreciation 877 1,134
Insurance 1,112 1,079
Telephone 1,251 1,617
Postage and stationery 256 2,166
Subscriptions 268 105
Sundry 684 349
Training 1,017 378
Governance costs:
Independent Examiners Fee 2,220 2,010
7,685 8,838
**----- End of picture text -----**
## **4. Support costs**
## **5. 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 was as follows:
I Gollogly (Administrator) Remuneration - £4,707 (2022: £6,341) Employer's pension contribution - £nil (2022: £nil)
No other trustees received any remuneration, benefits or received reimbursed of expenses in either the current or previous year.
## **6. Staff**
|**Staff costs**
Staff costs during the period were:
Wages and salaries
Other pension costs|**12m to 31.8.23**
**£**
69,856
453
70,309|**18m to 31.8.22**
**£**
99,553
757
100,310|
|---|---|---|
Page 10
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
## **6. Staff (continued)**
## **Staff numbers**
The average number of persons employed by the charity during the period was as follows:
||**12m to**|**31.8.23**|**18m to**|**31.8.22**|
|---|---|---|---|---|
|||**£**||**£**|
|Provision of care and education||**8**||7|
## **Higher paid staff**
There were no employees whose annual remuneration was £60,000 or more.
## **Key management personnel**
The remuneration of the key management personnel totalled £24,044 for the 12 months to 31.8.23 (18 months to 31.8.2022: £35,371).
## **7. Tangible fixed assets**
|**Cost**
At 1 September 2022
At 31 August 2023
**Depreciation**
At 1 September 2022
Charge for the year
At 31 August 2023
**Net book value**
**8.**
**Creditors: amounts falling due within one year**
Other creditors
Accruals
At 31 August 2023
At 31 August 2022|**Equipment,**
**fixtures and**
**fittings**
**£**
5,420
5,420
1,322
849
2,171
3,249
4,098|**Computers**
**£**
379
379
322
28
350
29
57
**2023**
**£**
295
4,706
5,001|**Total**
**£**
5,799
5,799
1,644
877
2,521
3,278
4,155
**2022**
**£**
142
2,010
2,152|
|---|---|---|---|
Page 11
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
## **9. Related party transactions**
There were no related party transaction in the year (2022 - None) except those detailed in note 5.
## **10. 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 £757 (2022: £757). Contributions totalling £nil (2022: £nil) were payable to the fund at the balance sheet date.
## **11. Commitments under operating leases**
At 31 August 2023 the charity had future minimum lease payments under non-cancellable operating leases not later than one year of £6,082 (2022: £5,000).
|**12.**
**Restricted funds**
**Current year**
Universal Funding
Early Years Pupil Premium funding
Nursery Milk Re-imbursement
Other LA grants
**Prior year**
Universal Funding
Early Years Pupil Premium funding
Other LA grants|**Balance**
**At 1 Sep 22**
**£**
-
592
-
-
592
**Balance**
**At 1 Mar 21**
**£**
-
-
-
-|**Income**
**£**
81,980
1,038
270
2,272
85,560
**Income**
**£**
106,572
1,661
1,420
109,653|**Expenditure**
**£**
(81,980)
(595)
(270)
(2,272)
(85,117)
**Expenditure**
**£**
(106,572)
(1,069)
(1,420)
(109,061)|**Balance**
**At 31 Aug 23**
**£**
-
1,035
-
-
1,035
**Balance**
**At 31 Aug 22**
**£**
-
592
-
592|
|---|---|---|---|---|
## _Universal Funding_
Income received from the Local Authority to cover the normal running costs of the pre-school.
## _Early Years Pupil Premium / Other grants_
Pupil premium, SEN support and training grants provided by the Local Authority
## _Nursery Milk Re-imbursement_
Funds provided on behalf of the Department of Health and Social Care for Nursey milk costs.
## _Other LA grants_
Funding from the Local Authority to cover additional SENCO costs.
Page 12
## SQUIRRELS PRE-SCHOOL CIO
## NOTES TO THE FINANCIAL STATEMENTS
## FOR THE YEAR ENDED 31 AUGUST 2023
|**13.**
**Analysis of net assets between funds**
**Fund balances at 31 Aug 23 are represented by:**
Tangible assets
Current assets
Creditors
**Fund balances at 31 Aug 22 are represented by:**
Tangible assets
Current assets
Creditors|**Restricted**
**funds**
**£**
-
1,035
-
1,035
**Restricted**
**funds**
**£**
-
592
-
592|**Unrestricted**
**funds**
**£**
3,278
10,922
(5,001)
9,199
**Unrestricted**
**funds**
**£**
4,155
25,491
(2,152)
27,494|**Total**
**At 31 Aug 23**
**£**
3,278
11,957
(5,001)
10,234
**Total**
**At 31 Aug 22**
**£**
4,155
26,083
(2,152)
28,086|
|---|---|---|---|
Page 13