Chair’s Report 2024–2025, Ovingham and district under 5s
Finance update
This year has been a year characterised by challenge and resilience. Significant financial pressures because of lower enrolments have led to a weaker set of results than we would have hoped to have announced, however, the preschool has continued to deliver high-quality early years education through careful management, strong community support, and the unwavering dedication of our staff and trustees.
From a financial perspective, this past year has been one of the most challenging in our history. The trustees have closely monitored our cashflow throughout the year, recognising the pressures on both income and expenditure. For the financial year ending 31 July 2025, we are declaring a modest deficit of £605, with total income of £66,919 and total expenditure of £67,524. While the result represents a small loss, it is noteworthy that it is not larger, given the reduced number of children attending our setting this year. Our ability to limit the deficit to such a small amount reflects the dedication and careful financial management of both staff and our trustees. The bank and cash balance at year-end stood at £12,657, down slightly from £13,262 in 2023/4.
Expenditure was, as expected, dominated by staff costs, which totalled £56,836 (including salaries, pension contributions, and HMRC liabilities). Our dedicated and skilled staff team remains the cornerstone of the preschool’s success, and we continue to look at options to improve pay and to offer more CPD, despite financial pressures.
Update on building project
We continue to make steady progress towards our long-term goal of securing a new building for the preschool. During the year, we reached a major milestone in agreeing a long lease with our landlord, the Diocese of Newcastle. Architectural plans have been approved in consultation with stakeholders, and comprehensive business plans have been prepared. The next phase will involve refining the drawings and seeking funding sources to bring the project to fruition. The trustees remain fully committed to delivering a sustainable, fit-for-purpose facility for future generations.
Governance & outlook
This year, we strengthened our governance structure by appointing two additional trustees. Charlie Downing was elected as Secretary for a three-year term, and we warmly welcomed Clara Shield to the team as our Fundraising Officer. Their skills and enthusiasm will be invaluable as we continue to develop our setting.
These remain difficult times for all early year’s providers, particularly those in the voluntary sector, where the so-called “free” childcare hours do not cover the true cost of provision. The resulting tight margins limit our ability to build financial reserves, making long-term planning increasingly complex. However, despite these pressures, I firmly believe that our community-focused model of governance remains a powerful asset. We have an unwavering focus on the wellbeing and development of our children, and every decision the staff and I make, is guided by what is best for the children, their families, and our wider community. As we look ahead, enrolment numbers have improved significantly, and work on securing funding for our building is progressing. With that in mind, the trustees remain committed to ensuring the preschool’s financial resilience and to ensure we continue to deliver high-quality early years education in an independent setting.
Dr Michael Price, Chair – Ovingham and district under 5’s.
Ovingham & District Under 5s
Ovingham & District Under 5s
Financial Statements
For the year ended 31 July 2025
Charity Registration Number 1176119
1
Ovingham & District Under 5s
Cashflow Summary from 1 August 2024 to 31 July 2025
| Business Receipts | £66919 |
|---|---|
| Business Payments | £67524 |
| Cash Generated by the Business | £0 |
| Bank and cash balance at 1 August 2024 | £13262 |
| Bank and cash balance at 31 July 2025 | £12657 |
| Decrease in bank and cash balances for the period | £605 |
2
Ovingham & District Under 5s
Income and Expenditure
Year Ending 31 July 2025
Income
| Grant Income | £51799 | |
|---|---|---|
| Fee Income | £8860 | |
| Wreath Making Evening | £645 | |
| Proceeds from Raffle | £110 | |
| Small Grant Karbon Homes | £500 | |
| Grant – Ovingham Parish Council | £100 | |
| Interest Free Loan | £3800 | |
| Fundraising | £1063 | |
| Paypal Refund | £25 | |
| BT Refund | £17 | |
| £66919 |
3
Expenditure
| Staff Costs Wages/Salaries £50068 HMRC £3935 NEST Pension Contributions £2833 Total Staff Costs Non-Staff Costs Tapestry Online Learning Journal £162 OFSTED Registration £50 Telephone/Broadband £701 Website Fees £121 Interior Repairs to Nursery Building £600 Petty Cash £360 Resource Materials £1663 Pre-School Learning (Insurance) £727 Portable Appliance Testing £253 School Lunches £974 PHS £84 Wreath Making Evening – Costs £608 Ovingham Oracle Advert £15 Northumberland CC £180 Loan Repayment £3800 Bereavement Package £27 Council Tax £363 Total Non-Staff Costs TOTAL OPERATING COSTS Deficit |
£56836 £10688 £67524 £605 |
|---|---|
4
Ovingham & District Under 5s
Statement of Assets and Liabilities as at 31 July 2024
| Monetary Assets | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Bank Current Account | £12657 | £13262.00 | £12793.00 | £9050.00 |
| Bank Deposit Account | £0 | £0 | £0 | £11031 |
| Cash | £0 | £0 | £0 | £0 |
| TOTAL | £12657 | £13262.00 | £12793.00 | £9050.00 |
5
CHARITY COMMISSION FOR ENGLAND AND WALES Independent examiner's report on the accounts Roport to th• trust••$ On accounts for the year ended 31 July 2025 Charity no {if any) 1176119 Set out on pages 2-5 of attached Financial Statements I report to the trustees on my examination of the accounts of the above charity I'the Trust") for the year ended Re8pon8SbllltSes and bas58 As the charity's Iruslees. you are responsible for the preparation of the of report accounts in accordance with the requirements of the Charities Ad 2011 {"Ihe Act.). 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 14515)Ib} of the Act. Independent examinerfs tThe charity's gross income exceeded £250,000 and l am qualified lo statement undertake the examination by being a qualified member of linsert name of applicable listed bc*Jyll- Delete I l if not applicable. I have completed my examination. l confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below ') which gives me cause to believe that in, any material respect.. the accounting records were not kept in accordance with section 130 of the Charities Act. or the accounts did not accord with the accounting records., or the accounts did not comply with the applicable requirements conceming the fomi 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 maller considered as part of an independent examination. I have no concems and have come across no other matters in connection with the examinalion to which allention should be drawn in this report in ordei lo enable a proper understanding of Ihe accounts lo be reached. Please delete the words in the bCketS if they do not apply. Signed: Ray Marfey Date: 0810512026 Name: Ray Marley IER Oct 2018
Relevant professional qualification(s} or body (if any): Address: 79 Kenton Lane Newcasde upon Tyne NE3 3BS Only complete Il the examiner needs lo highlight malerial mallers of concern (see CC32, Independent examination of charity accounts.. directions and guidanck for examiners). IER Oct 2018
Give here brief details of any items that the examiner wishes to disclose. IER Oct 2018