Charity Registra�on No. 1173396
Sowing Seeds Pre School
Annual Report and Unaudited Financial Statements
For the year ended 16 July 2021
SOWING SEEDS PRE SCHOOL
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of fnancial ac�vi�es | 4 |
| Balance sheet | 5 |
| Notes to the fnancial statements | 6 - 10 |
SOWING SEEDS PRE SCHOOL
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees A Hockney A Beeton L Harvey Charity number 1173396 Independent examiner Gilberts Chartered Accountants Pendragon House 65 London Road St Albans Her�ordshire AL1 1LJ
SOWING SEEDS PRE SCHOOL
TRUSTEES' REPORT
FOR THE YEAR ENDED 16 JULY 2021
The trustees present their annual report and financial statements for the year ended 16 July 2021.
The financial statements have been prepared in accordance with the accoun�ng policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Chari�es Act 2011 and "Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102)" (effec�ve 1 January 2019).
Objec�ves and ac�vi�es
The charity's objects are for the public benefit, the advancement of the Chris�an Faith as part of the mission of Life Church Cuffley and by the advancement of educa�on in Cuffley and the surrounding area.
The ac�vi�es undertaken in furtherance of these objects is the provision of preschool educa�on for children aged 24. We follow the EYFS in line with Ofsted requirements and follow the Statutory Framework for Early Years.
We provide a safe, warm, enabling environment which offers ac�vi�es based on children's interests to promote their learning and independence, ensuring that the children reach their full poten�al before they leave us to go to Nursery or Recep�on.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what ac�vi�es the charity should undertake.
Achievements and performance
During this current financial year, Sowing Seeds Preschool con�nued to provide an excellent educa�onal se�ng for our community’s families. We focused on suppor�ng our children and their families with the impact that the pandemic has had on them. We have remained full to capacity and throughout the year con�nued to build a wai�ng list for the following September. Whilst dealing with restric�ons on having people enter our premises, we were fortunate enough to be able to s�ll provide exci�ng ac�vi�es to promote the children’s learning and development, for example, “Ark Farm” came for a visit outside bringing a selec�on of different animals for the children to meet and learn about.
Financial review
Full details of the Trust's financial posi�on are shown in the accounts a�ached to this report.
The trustees consider that the financial posi�on and reserves of the charity are sa�sfactory.
It is the policy of the charity that reserves should be maintained at a level to ensure the charity has an adequate con�ngency fund to meet staff salaries and essen�al running costs..
The trustees have assessed the major risks to which the charity is exposed, and are sa�sfied that systems are in place to mi�gate exposure to the major risks.
Structure, governance and management
The charity is a charitable incorporated organisa�on.
The trustees who served during the year and up to the date of signature of the financial statements were:
A Hockney
A Beeton L Harvey
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SOWING SEEDS PRE SCHOOL
TRUSTEES' REPORT (Con�nued)
FOR THE YEAR ENDED 16 JULY 2021
The trustees' report was approved by the Board of Trustees.
A Hockney Trustee
10 May 2022
2
SOWING SEEDS PRE SCHOOL
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF SOWING SEEDS PRE SCHOOL
I report to the trustees on my examina�on of the financial statements of Sowing Seeds Pre School (the charity) for the year ended 16 July 2021.
Responsibili�es and basis of report
As the trustees of the charity you are responsible for the prepara�on of the financial statements in accordance with the requirements of the Chari�es Act 2011 (the 2011 Act).
I report in respect of my examina�on of the charity’s financial statements carried out under sec�on 145 of the 2011 Act. In carrying out my examina�on I have followed all the applicable Direc�ons given by the Charity Commission under sec�on 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your a�en�on is drawn to the fact that the charity has prepared financial statements in accordance with Accoun�ng and Repor�ng by Chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce issued on 1 April 2005 which is referred to in the extant regula�ons but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accoun�ng Prac�ce effec�ve for repor�ng periods beginning on or a�er 1 January 2015.
I have completed my examina�on. I confirm that no ma�ers have come to my a�en�on in connec�on with the examina�on giving me cause to believe that in any material respect:
-
1 accoun�ng records were not kept in respect of the charity as required by sec�on 130 of the 2011 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Chari�es (Accounts and Reports) Regula�ons 2008 other than any requirement that the accounts give a true and fair view which is not a ma�er considered as part of an independent examina�on.
I have no concerns and have come across no other ma�ers in connec�on with the examina�on to which a�en�on should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Gilberts Chartered Accountants
Pendragon House 65 London Road St Albans Her�ordshire AL1 1LJ
Dated: 10 May 2022
3
SOWING SEEDS PRE SCHOOL
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 16 JULY 2021
| Unrestricted | Unrestricted | Unrestricted | ||||
|---|---|---|---|---|---|---|
| funds | funds | |||||
| 2021 | 2020 | |||||
| Notes | £ | £ | ||||
| Income from: | ||||||
| Charitable ac� | vi� | es | 2 | 82,330 | 55,005 | |
| Expenditure on: | ||||||
| Charitable ac� | vi� | es | 3 | 86,304 | 50,636 | |
| Net (expenditure)/income for the year/ | ||||||
| Net movement in funds | (3,974) | 4,369 | ||||
| Fund balances | at | 17 July 2020 | 11,103 | 6,734 | ||
| Fund balances at 16 July 2021 | 7,129 | 11,103 |
The statement of financial ac�vi�es includes all gains and losses recognised in the year.
All income and expenditure derive from con�nuing ac�vi�es.
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SOWING SEEDS PRE SCHOOL
BALANCE SHEET
AS AT 16 JULY 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 6 | 104 | 156 | ||
| Current assets | |||||
| Debtors | 7 | 3,634 | 7,459 | ||
| Cash at bank and in hand | 3,905 | 6,039 | |||
| 7,539 | 13,498 | ||||
| Creditors: amounts falling due within one | |||||
| year | 8 | (514) | (2,551) | ||
| Net current assets | 7,025 | 10,947 | |||
| Total assets less current liabili�es | 7,129 | 11,103 | |||
| Income funds | |||||
| Unrestricted funds | 7,129 | 11,103 | |||
| 7,129 | 11,103 |
The financial statements were approved by the Trustees on 10 May 2022
A Hockney Trustee
A Beeton Trustee
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SOWING SEEDS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 16 JULY 2021
1 Accoun�ng policies
Charity informa�on
Sowing Seeds Pre School is a Charitable Incorporated Organisa�on registered in England with the Charity Commission. The address of the principal loca�on is Life Church Cuffley, Cuffley, Po�ers Bar, Her�ordshire EN6 4LN.
1.1 Accoun�ng conven�on
The financial statements have been prepared in accordance with the charity's governing document, the Chari�es Act 2011 and “Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accoun�ng periods commencing from 1 January 2016). The charity is a Public Benefit En�ty as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for chari�es applying FRS 102 Update Bulle�n 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the func�onal currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost conven�on. The principal accoun�ng policies adopted are set out below.
1.2 Charitable funds
Unrestricted funds are available for use at the discre�on of the trustees in furtherance of their charitable objec�ves.
1.3 Income
All income is included in the statement of financial ac�vi�es when en�tlement has passed to the charity, it is probable that the economic benefits associated with the transac�on will flow to the charity and the amount can be reliably measured
1.4 Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered.
1.5 Tangible fixed assets
Tangible fixed assets are ini�ally measured at cost and subsequently measured at cost or valua�on, net of deprecia�on and any impairment losses.
Deprecia�on is recognised so as to write off the cost or valua�on of assets less their residual values over their useful lives on the following bases:
Equipment 20% Straight Line
1.6 Impairment of fixed assets
At each repor�ng end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indica�on that those assets have suffered an impairment loss. If any such indica�on exists, the recoverable amount of the asset is es�mated in order to determine the extent of the impairment loss (if any).
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SOWING SEEDS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (Con�nued)
FOR THE YEAR ENDED 16 JULY 2021
1 Accoun�ng policies
(Con�nued)
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturi�es of three months or less, and bank overdra�s. Bank overdra�s are shown within borrowings in current liabili�es.
1.8 Financial instruments
The charity has elected to apply the provisions of Sec�on 11 ‘Basic Financial Instruments’ and Sec�on 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 charity becomes party to the contractual provisions of the instrument.
Financial assets and liabili�es 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 inten�on to se�le on a net basis or to realise the asset and se�le the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are ini�ally measured at transac�on price including transac�on costs and are subsequently carried at amor�sed cost using the effec�ve interest method unless the arrangement cons�tutes a financing transac�on, where the transac�on 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 amor�sed.
Basic financial liabili�es
Basic financial liabili�es, including creditors and bank loans are ini�ally recognised at transac�on price unless the arrangement cons�tutes a financing transac�on, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabili�es classified as payable within one year are not amor�sed.
Debt instruments are subsequently carried at amor�sed cost, using the effec�ve interest rate method.
Trade creditors are obliga�ons to pay for goods or services that have been acquired in the ordinary course of opera�ons from suppliers. Amounts payable are classified as current liabili�es if payment is due within one year or less. If not, they are presented as noncurrent liabili�es. Trade creditors are recognised ini�ally at transac�on price and subsequently measured at amor�sed cost using the effec�ve interest method.
Derecogni�on of financial liabili�es
Financial liabili�es are derecognised when the charity’s contractual obliga�ons expire or are discharged or cancelled.
1.9 Employee benefits
The cost of any unused holiday en�tlement is recognised in the period in which the employee’s services are received.
1.10
Payments to defined contribu�on re�rement benefit schemes are charged as an expense as they fall due.
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SOWING SEEDS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (Con�nued)
FOR THE YEAR ENDED 16 JULY 2021
2 Charitable ac�vi�es
| Income | Income | |
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Parent Fees | 30,881 | 18,421 |
| Funding | 48,653 | 35,074 |
| Lunch Club | 2,796 | 550 |
| Other income | | 960 |
| 82,330 | 55,005 |
3 Charitable ac�vi�es
| Expenditure | Expenditure | |
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Staf costs | 60,281 | 40,786 |
| Deprecia�on and impairment | 52 | 52 |
| Pre School Supplies | 13,811 | 5,423 |
| Uniform Costs | 530 | (341) |
| Rent | 7,706 | 3,612 |
| Insurance | 423 | 423 |
| Adver�sing and Marke�ng | | 52 |
| Staf Training | 248 | 215 |
| Subscrip�ons | 1,244 | 409 |
| General Expenses | 1,769 | (235) |
| Accountancy | 240 | 240 |
| 86,304 | 50,636 | |
| 86,304 | 50,636 |
4 Trustees
Alison Hockney, a trustee of the charity, received remunera�on of £13,980 as manager of the pre school.
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SOWING SEEDS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (Con�nued)
FOR THE YEAR ENDED 16 JULY 2021
5 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 | |||
|---|---|---|---|---|
| Number | Number | |||
| Nursery Staf | 6 | 5 | ||
| Employment costs | 2021 | 2020 | ||
| £ | £ | |||
| Wages and salaries | 59,593 | 40,375 | ||
| Other pension costs | 688 | 411 | ||
| 60,281 | 40,786 |
There were no employees whose annual remunera�on was more than £60,000.
| 6 | Tangible fxed assets | |||
|---|---|---|---|---|
| Equipment | ||||
| £ | ||||
| Cost | ||||
| At 17 July 2020 | 260 | |||
| At 16 July 2021 | 260 | |||
| Deprecia�on and impairment | ||||
| At 17 July 2020 | 156 | |||
| At 16 July 2021 | 156 | |||
| Carrying amount | ||||
| At 16 July 2021 | 104 | |||
| At 16 July 2020 | 156 | |||
| 7 | Debtors | |||
| 2021 | 2020 | |||
| Amounts falling due within one year: | £ | £ | ||
| Other debtors | 3,634 | 7,459 |
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SOWING SEEDS PRE SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (Con�nued)
FOR THE YEAR ENDED 16 JULY 2021
8 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Other taxa�on and social security | 514 | 557 |
| Other creditors | | 1,994 |
| 514 | 2,551 |
- 9 Related party transac�ons
There were no disclosable related party transac�ons during the year (2020 none).
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