Charity Registration No. 1173000
SQUIRRELS PRE-SCHOOL CIO
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
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 Lola Cary Isabelle Gollogly Melanie Hillier Charity number 1173000 Registered office 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 2024
The trustees present their report and financial statements for the year ended 31 August 2024.
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 32 (2023: 35) children on our register with 21 (2023: 23) moving onto the Infant School at the end of the school year.
We do themed activity weeks and have parties for Christmas and end of academic year.
We achieved a ‘Good’ Ofsted inspection in December 2023 after our ‘Inadequate’ inspection in June 2023.
FINANCIAL REVIEW
The pre-school's income for the year was £90,079 (2023: £91,337) and mainly consisted of Early Years Funding from Kent County Council.
Expenditure for the year was £97,001 (2023: £109,189). This led to a deficit of £6,922 (2023: Deficit of £17,852).
Total funds of the pre-school at 31 August 2024 were £3,312 (2023: £10,234).
a) Going concern
The accounts are currently showing a deficit on unrestricted funds of £1,018 (2023: Surplus of £9,199) with a bank balance at the year end of £13,469 (2023: £11,957). The deficit position is as a result of the pre-school’s funding losses from September 2023 to December 2023. After making appropriate enquiries, the trustees have a reasonable expectation that the charity has full funding from KCC and is running at full capacity in order that the pre-school can 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 (2023 - £10,000). However, due to our funding losses from September to December 2023 the reserves as shown below are short of the required policy. The pre-school is now in receipt of its normal full funding from KCC and continues to ensure it run at full capacity in order to bring the reserves back to the required level.
Unrestricted funds at 31 August 2024 amounted to a defcit of £1,018 (2023: Surplus of £9,199).
Designated funds at 31 August 2024 amounted to £2,618 (2023: £nil).
Restricted funds at 31 August 2024 amounted to £1,712 (2023: £1,035).
Total funds at 31 August 2024 amounted to £3,312 (2023: £10,234).
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SQUIRRELS PRE-SCHOOL CIO
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 AUGUST 2024
c) Post Balance Sheet Events
We are still waiting for KCC to repair the cladding on the building. We have raised this with KCC during our lease negotiations but we are still awaiting action.
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP 2015 (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 27 March 2025 and signed on their behalf by:
I I Gollogly Gollogly Trustee
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SQUIRRELS PRE-SCHOOL CIO
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SQUIRRELS PRE-SCHOOL CIO FOR THE YEAR ENDED 31 AUGUST 2024
I report to the charity trustees on my examination of the accounts of the CIO for the year ended 31 August 2024 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:
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accounting records were not kept in respect of the Company as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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.
Material uncertainty relating to going concern
I have considered the adequacy of the disclosures made in the Accounting Policies – Going Concern, note 1.2 concerning the charity’s ability to continue as a going concern. At 31 August 2024 the charity had net assets of £3,312 (2023: £10,234) and unrestricted funds were a deficit of £1,018 (2023 : surplus of £9,199).
As set out in the Trustees’ Report on page 2, the pre-school now has full funding and is operating at maximum capacity, but the year end position indicate a material uncertainty exists that may cast doubt on the pre-school’s ability to continue as a going concern.
I have no other 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.
Pixete Dnt Seorrees
M A Wilkes (FCA)
Azets Audit Services
2[nd] Floor 32 – 33 Watling Street Canterbury Kent CT1 2AN
Date: 2 April 2025 Date: 4 April 2025
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SQUIRRELS PRE-SCHOOL CIO
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024
| Notes Income from: Charitable activities: School fees Other income Total income Expenditure on: Charitable activities 3 Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted funds £ 9,077 131 9,208 16,807 (7,599) 9,199 1,600 |
Restricted funds £ 80,871 - 80,871 80,194 677 1,035 1,712 |
Total 2024 £ 89,948 131 90,079 97,001 (6,922) 10,234 3,312 |
Total 2023 £ 91,337 - 91,337 109,189 (17,852) 28,086 10,234 |
|---|---|---|---|---|
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 2024
Comparative year information Year ended 31 August 2023
| 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 £ 5,900 5,900 20,752 (14,852) 42,346 27,494 |
Restricted funds £ 109,653 109,653 109,061 592 - 592 |
Total 2023 £ 115,553 115,553 129,813 (14,260) 42,346 28,086 |
|---|---|---|---|
Page 6.
SQUIRRELS PRE-SCHOOL CIO
BALANCE SHEET
AS AT 31 AUGUST 2024
| 2024 | 2024 | 2023 | 2023 | ||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 7 | 2,618 | 3,278 | ||
| Current assets | |||||
| Debtors | 8 | 751 | |||
| Cash at bank and in hand | 13,469 | 11,957 | |||
| Creditors: amounts falling due within one year |
9 | 14,220 (13,526) |
11,957 (5,001) |
||
| Net current assets | 694 | 6,956 | |||
| Net assets | 3,312 | 10,234 | |||
| The funds of the charity: | |||||
| Restricted funds | 13 | 1,712 | 1,035 | ||
| Unrestricted funds | |||||
| Designated funds | 14 | 2,618 | - | ||
| General unrestricted fund | (1,018) | 9,199 | |||
| 1,600 | 9,199 | ||||
| 15 | 3,312 | 10,234 |
The financial statements were approved by the trustees on 27 March 2025 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 2024
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
The accounts are currently showing a deficit on unrestricted funds of £1,018 (2023: Surplus of £9,199) with a bank balance at the year end of £13,469 (2023: £11,957). The deficit position is as a result of the pre-school’s funding losses from September 2023 to December 2023. After making appropriate enquiries, the trustees have a reasonable expectation that the charity has full funding from KCC and is running at full capacity in order that the pre-school can continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis 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.
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SQUIRRELS PRE-SCHOOL CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
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 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.
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SQUIRRELS PRE-SCHOOL CIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
| 3. Analysis of Expenditure Staff costs £ Charitable activity Provision of care and education 75,688 4. Support costs Depreciation Insurance Telephone Postage and stationery Subscriptions Computers / website Sundry Training Governance costs: Independent Examiners Fee |
Direct costs £ 13,521 |
Support costs £ 7,792 |
Total 2024 £ 97,001 2024 £ 660 1,165 1,339 - - 232 593 263 3,540 7,792 |
2023 £ 109,189 2023 £ 877 1,112 1,251 256 268 - 684 1,017 2,220 7,685 |
|---|---|---|---|---|
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 - £5,287 (2023: £4,707)
Employer's pension contribution - £nil (2023: £nil)
One trustee sold leftover materials of the pre-school on it's behalf for £131 (2023 - None).
No other trustees received any remuneration or benefits in either the current or previous year.
6. Staff
| Staff costs Staff costs during the period were: Wages and salaries Other pension costs Staff numbers The average number of persons employed by the charity during the period Provision of care and education |
2024 £ 75,172 516 75,688 was as follows: 2024 £ 9 |
2023 £ 69,856 453 70,309 2023 £ 8 |
|---|---|---|
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SQUIRRELS PRE-SCHOOL CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
6. Staff (continued)
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 £25,089 (2023: £24,044).
7. Tangible fixed assets
| Cost At 1 September 2023 At 31 August 2024 Depreciation At 1 September 2023 Charge for the year At 31 August 2024 Net book value 8. Debtors Other debtors 9. Creditors: amounts falling due within one year Other creditors Accruals At 31 August 2024 At 31 August 2023 |
Equipment, fixtures and fittings £ 5,420 5,420 2,171 650 2,821 2,599 3,249 |
Computers £ 379 379 350 10 360 19 29 2024 £ 751 751 2024 £ - 13,526 13,526 |
Total £ 5,799 5,799 2,521 660 3,181 2,618 3,278 2023 £ - - 2023 £ 295 4,706 5,001 |
|---|---|---|---|
10. Related party transactions
There were no related party transactions in the year (2023: None) except those detailed in note 5.
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SQUIRRELS PRE-SCHOOL CIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
11. 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 £910 (2023: £757). Contributions totalling £nil (2023: £nil) were payable to the fund at the balance sheet date.
12. Commitments under operating leases
At 31 August 2024 the charity had future minimum lease payments under non-cancellable operating leases not later than one year of £nil (2023: £6,082). The pre school is currently finalising a lease with Kenty County Council which was signed in 2025.
| 3. 14 |
Restricted funds Balance Balance At 1 Sep 23 Income Expenditure At 31 Aug 24 Current year £ £ £ £ Universal Funding - 70,068 (70,068) - Early Years Pupil Premium funding 1,035 1,136 (459) 1,712 Nursery Milk Re-imbursement - 252 (252) - Other LA grants - 9,415 (9,415) - 1,035 80,871 (80,194) 1,712 Balance Balance At 1 Sept 22 Income Expenditure At 31 Aug 23 Prior year £ £ £ £ Universal Funding - 81,980 (81,980) - Early Years Pupil Premium funding 592 1,038 (595) 1,035 Nursery Milk Re-imbursement - 270 (270) Other LA grants - 2,272 (2,272) - 592 85,560 (85,117) 1,035 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. Designated funds Balance New Designations Balance At 1 Sept 23 designations released At 31 Aug 24 Fixed Asset Fund - 2,618 - 2,618 |
|---|---|
13.
Fixed Asset Fund
This fund represents fixtures and fittings which have been purchased and cover future depreciation charges.
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SQUIRRELS PRE-SCHOOL CIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
15. Analysis of net assets between funds
| Restricted funds £ Tangible assets - Current assets 1,712 Creditors - 1,712 Fund balances at 31 Aug 23 are represented by: Restricted funds £ Tangible assets - Current assets 592 Creditors - 592 |
Designated funds £ 2,618 - - 2,618 Designated funds £ - - - - |
Unrestricted funds £ - 12,508 (13,526) (1,018) Unrestricted funds £ 3,278 11,365 (5,001) 9,642 |
Total At 31 Aug 24 £ 2,618 14,220 (13,526) 3,312 Total At 31 Aug 23 £ 3,278 11,957 (5,001) 10,234 |
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