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2021-08-31-accounts

Charity number: 1182861

Pavilion Pre-School (Aigburth) UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31/08/2021

Prepared By:

Harvey Guinan LLP Chartered Certified Accountants 310/311 Vanilla Factory 39 Fleet Street Liverpool Merseyside L1 4AR

Pavilion Pre-School (Aigburth)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/08/2021

TRUSTEES

Kay Bradshaw Lisa Bramwell Louise Bridge (appointed 14/12/2021) Kate Daley (appointed 14/12/2021) Kethryn Dempsey (appointed 14/12/2021) Cara Edwards Iga Kowalska - Owen (appointed 14/12/2021) Sally Nicholls (appointed 14/12/2021) Caroline O'Rourke (appointed 14/12/221) Ursula Roberts

REGISTERED OFFICE

50 Dundonald Road Aigburth Liverpool L17 0AF

CHARITY NUMBER

1182861

INDEPENDENT EXAMINER - Julie Guinan FCCA

Harvey Guinan LLP Chartered Certified Accountants 310/311 Vanilla Factory 39 Fleet Street Liverpool Merseyside L1 4AR

page 1

Pavilion Pre-School (Aigburth)

ACCOUNTS FOR THE YEAR ENDED 31/08/2021

CONTENTS

Page
Report of the Trustees 3
Independent Examiner's Statement 9
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Accounts 14 to 20
Detailed Statement of Financial Activities 21

page 2

Pavilion Pre-School (Aigburth)

FOR THE YEAR ENDED 31/08/2021

TRUSTEES' REPORT

The trustees present their report and accounts for the year ended 31/08/2021

PRINCIPAL ACTIVITIES

The principal activity of the charity in the year under review was to enhance the development and education of children primarily under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups

STRUCTURE GOVERNANCE AND MANAGEMENT

Pavilion Pre-School Aigburth was constituted by a formal Constitution and became a registered

CIO - ASSOCIATION Registered 08 Apr 2019 Charity Number 1182861 (previous unincorporated charity number 518169) CE 017101.

The financial statements have been prepared in accordance with the charity's Constitution, the Charities Act 2011, and 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 (FRS 102).

The charity was established under a Constitution which established objects and powers of the charity and it is governed under its Constitution.

The charity has a board of trustees who plan to meet at least once a term across the academic year to oversee the general management and operation of the pre-school via the management team, discuss any financial, employment, legal or statutory requirements, plus discuss fundraising initiatives. Trustees work in partnership with the Pre-School Learning Alliance for guidance when needed as well as Peninsular HR and Health and Safety.

The day to day operations management is carried out by the Office manager, being key personel Jo Riley and the pre-school staff. Staff are remunerated based upon experience and roles at market rates.

The trustees approve policy which is then implemented by the staff. The charity is working to a business plan and strategy to focus on the delivery of its objects. In setting policy the trustees and management give due consideration to guidelines issued by the Charity Commission regarding public benefit.

New trustees go through a period of induction involving being provided with copies of the constitution, financial statements, relevant policies and business plans and reports to enable them to achieve an effective introduction to the charity. New trustees have an opportunity to meet the board and staff and to familiarize themselves with the organisation.

The charity's trustees are volunteers and do not receive remuneration for their services as trustees.

At the AGM the committee members step down and new trustees are nominated and elected. The minimum number of trustees is 5 the maximum is 12.

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Pavilion Pre-School (Aigburth)

FOR THE YEAR ENDED 31/08/2021

TRUSTEES' REPORT

Section 16 of the constitution states that trustees can only serve for 5 consecutive years but can be reappointed after a gap of at least 1 year.

The Charity seeks to have a wide range of skills and experience on its Committee, contained within a small number of individuals. Applications are welcome from potential Committee members regardless of, for example, ethnic origin or disability.

Pavilion Pre-school is a community pre-school, its members consist of families attending the setting, past/present, staff and affiliate members. We hold an AGM each year and all members are invited to attend.

Officer posts are nominated and elected at the 1st trustee meeting. No trustees are paid for their contributions. All Trustees require a clear volunteers DBS certificate and signed confidentiality agreements, as well as registering for an EY2 via OFSTED on line portal.

OBJECTS OF THE CHARITY

Pavilion Pre-School Aigburth works for the public benefit having as its objects the development and education of children and young people in particular by:

Pavillion Pre-School aims to enhance the development and education of children primarily under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups and by:

a) Offering appropriate play, education and care facilities, family learning and extended hours groups, together with the right of parents to take responsibility for and become involved in the activities of such groups, ensuring that such groups offer opportunities for all children whatever their race, culture, religion, means or ability.

b) Encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs in the local community.

c) Compliance with the EYFS statutory Framework 2017 and LA framework.

d) Open and inclusive to all, regardless of race, religion, sexuality, culture, ability or means.

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Pavilion Pre-School (Aigburth)

FOR THE YEAR ENDED 31/08/2021

TRUSTEES' REPORT

e) Enhancing community engagement and local family services via active and collaborative discussions.

Pavilion Pre-School works closely with the families who attend the setting, creating a wonderful atmosphere where children feel safe and secure. Parents are encouraged to share skills and experiences, encouraging diversity.

REVIEW OF ACHIEVEMENTS AND PERFORMANCE

The Charity Continued to provide early years childcare through 2020.21. for the local community.

The Charity built a brand new community preschool building to budget.

The Charity survived Lock Down through home working, key workers provision and short time working.

The Charity Supervised temporary relocation to premises for the duration of the building project.

The Charity Recruited x3 new staff to run Breakfast and after school activity which will bring in more revenue and offer more childcare services.

The Charity Continued to employ 13 staff.

The Charity Supported staff needing to shield due to the pandemic. The Charity provided support for staff who struggled with sickness and absence due to covid.

Children's needs are always put over profit.

2020 saw the commencement of a long dream, to rebuild our community preschool after many years of fundraising, bid writing and community support, we finally started building work on 27th July 2020. This was completed on the 24th November 2020, therefore crossed over our year end, and from our unincorporated charity 518169 to the new CIO. This was not ideal but the interruptions of a second Covid lock down added time and pressure to the construction schedule- but we still managed to complete in 19 weeks from start to finish.

We were awarded a capital grant of £300,000 from Power to Change for the rebuilding of the preschool. The total build element of the project cost £420,000 and we also spent on fixtures and fittings. We applied (under council from solicitors Butler Brown) for VAT zero status on the build project and were successfully awarded this in June 2020 plus funds from Liverpool City Council, The Foyle Foundation, Garfield Weston, Eleanor Rathbone, Tesco Bags for Life, Adsa, The Morgan Foundation and a community crowd funder (Spacehive) we hit our targets.

The preschool operated in the local church hall from September to November to ensure children could still access our provision. Costs were incurred for hall hire and storage, plus many staff were absent due to covid, incurring lots of overtime and sick pay.

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Pavilion Pre-School (Aigburth)

FOR THE YEAR ENDED 31/08/2021

TRUSTEES' REPORT

Many costs for resourcing the preschool were added to a credit card for speed and ease of purchasing items during lock down.

During the year 2020.21 staff bought resources as they lived in and used the setting.

June/July 2020 we recruited x3 staff to extend our community childcare provision to breakfast and afterschool club, and resources were bought accordingly. We spent on IT including iPads, plus spent on working with business mentors as guided by the Power to Change Business Development Grant award of £8k, investing in better accountancy systems.

Ensuring staff morale stayed high was vital to our success, with a big move of premises, and with covid pressures it was a difficult time for all staff and managers.

All of this work was carried out whilst still maintaining a busy and growing preschool with exceptional SEND support..

PUBLIC BENEFIT

Pavillion Pre-school delivers public benefit through the development and education of children and young people in the area it serves, We provide a safe, fun and stimulating environment for children and their families.

FINANCIAL REVIEW

Total Incoming resources were £605,550 being £211,755 on the unrestricted General Fund and £393,795 Capital Contributions to the Big Build Project. Total Outgoing resources were £151,133 being £134,042 on the general unrestricted fund and £11,091 on the restricted capital funds. The Balances on the Funds at 31 August 2021 total £460,417 being £77,713 general unrestricted funds and £382,704 restricted capital funds invested in fixed assets.

Included in incoming resources are funds transferred from Pavilion Pre- School (Aigbuth) unincorporated charity registered number 518169 of £205,347 restricted capital funds and £77,815 general unrestricted funds. All assets and liabilities of the chairty number 518169 are transferred to the Charitable Incorporated Organisation Pavilion Preschool (Aigburth) Charity number 1182861.

RISK MANAGEMENT

For each activity we produce a detailed risk assessment , amending as necessary to include Covid-19 and related government guidance. Monitoring of the identified risks is in place and the regularity of review is established

RESERVES POLICY

The Charity will endeavour to provide for financial stability and sustainability by maintaining a free reserve representing 6 months running costs. At 31 August 2021 free reserves were £47,003 and the Trustees continue to develop a reserve for sustainability. The trustees continue to review the reserves policy to meet the needs of activities.

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Pavilion Pre-School (Aigburth)

FOR THE YEAR ENDED 31/08/2021

TRUSTEES' REPORT

FUTURE PLANS

The completion of the building project is enabling the Pre-school to grow and it is offering Breakfast and After School provision from September 2021 which provides more community services and the opportunity for more local employment.

We look forward to settling in and enjoying our new premises.

VOLUNTEERS

Volunteers are a valuable resource for the Charity. This includes the Trustees, individuals undertaking work placement opportunities, regular volunteers in the Pre-school helping the children as well as community volunteers for gardening, maintenance and help with the Big Build Project

TRUSTEES RESPONSIBILITIES IN RELATION TO FINANCIAL STATEMENTS

The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Charity Law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and Applicable Law).

Under Charity Law the trustees must not approve the financial statements until they are satisfied that they give a true and fair view of the state of affairs of the charity and of the net incoming or outgoing resources of the charity for that period.

In preparing the financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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. 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.

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Pavilion Pre-School (Aigburth)

FOR THE YEAR ENDED 31/08/2021

TRUSTEES' REPORT

The names of the Trustees who held office during the year are noted on page 1.

APPROVAL

The report was prepared in accordance with the Charities Act 2011 and Statement of Recommended Practice FRS102 Accounting and Reporting by Charities.

This report was approved by the Board of Trustees on 29/06/2022

Ursula Roberts Trustee

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Pavilion Pre-School (Aigburth)

INDEPENDENT EXAMINER'S STATEMENT

FOR THE YEAR ENDED 31/08/2021

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PAVILION PRE-SCHOOL (AIGBURTH)

I report on the accounts of the charity for the year ended 31/08/2021 .

RESPONSIBILITIES AND BASIS OF REPORT

As the charity's trustees, 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 Charity'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 145(5)(b) of the Act.

INDEPENDENT EXAMINERS STATEMENT

II have completed my examination. I confirm that no material matters have come to my attention in connection with the examination 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 comply with the applicable 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 accounts to be reached.

...................................................

Date: 29/06/2022

Julie Guinan FCCA, Independent Examiner Harvey Guinan LLP Chartered Certified Accountants 310/311 Vanilla Factory

39 Fleet Street

page 9

Pavilion Pre-School (Aigburth)

INDEPENDENT EXAMINER'S STATEMENT FOR THE YEAR ENDED 31/08/2021

Liverpool Merseyside L1 4AR 01517097797

page 10

Pavilion Pre-School (Aigburth)

Statement of Financial Activities for the year ended 31/08/2021

Income
Income from generated funds
Income from charitable activities
Total Income
Expenses
Costs of generating funds
Expenditure on Charitable activities
Total Expenses
Net Income
Net movement in funds:
Net income for the year
Net funds carried forward
Unrestricted
funds
£
211,755
211,755
134,042
134,042
77,713
77,713
77,713
Restricted
funds
£
393,795
393,795
11,091
11,091
382,704
382,704
382,704
2021
Total
£
605,550
605,550
145,133
145,133
460,417
460,417
460,417
2020
Total
£
-
-
-
-
-
-
-

This statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities

page 11

Pavilion Pre-School (Aigburth) 2020
£
-
-
BALANCE SHEET AT 31/08/2021
Notes
FIXED ASSETS
Tangible assets
5
CURRENT ASSETS
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
6
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
RESERVES
Unrestricted funds
7
General fund
Restricted funds
8
48,703
48,703
1,700
2021
£
413,414
47,003
460,417
77,713
382,704
460,417
-
-
-
-
-
-
-

Approved by the board of trustees on 29/06/2022 and signed on their behalf by

............................. Ursula Roberts Trustee

page 12

Pavilion Pre-School (Aigburth) 2021
£
474,097
(425,394)
48,703
CASH FLOW FOR THE YEAR ENDED 31/08/2021
Notes
NET CASH INFLOW FROM OPERATING ACTIVITIES
13a
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Payments to acquire tangible assets
Net cash inflow from capital expenditure and financial investment
NET CASH INFLOW BEFORE FINANCING
FINANCING
INCREASE IN CASH
(425,394)
48,703

page 13

Pavilion Pre-School (Aigburth)

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31/08/2021

1. ACCOUNTING POLICIES

1a. Basis Of Accounting

The accounts have been prepared under the historical cost convention.

The accounts have been prepared in accordance with FRS102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.

1b. Incoming Resources

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

1c. Resources Expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1d. Allocation And Apportionment Of Costs

All costs relate to the single activity of the charitable company and are recognised accordingly.

1e. Fund Accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Designated funds are funds set aside by the trustees out of unrestricted general funds for the specific future purposes or projects.

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Pavilion Pre-School (Aigburth)

1f. Depreciation

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

Land And Buildings straight line 2% Fixtures and Fittings straight line 15%

1g. Pension Costs

The company operates a defined contribution pension scheme. The pension charge represents the amounts payable by the company to the fund in respect of the year.

1h. Turnover

Turnover represents the invoiced value of goods and services supplied by the company, net of value added tax and trade discounts.

1i. Recognition Of Income

Items of income are recognised and included in the accounts when all of the following are met: (1) The charity has entitlement to the funds; (2) Any performance conditions attached to the income have been met or are fully within the control of the charity; (3) There is sufficient certainty that receipt of the income is considered probable and (4) The amount can be measured reliably.

1j. Policy For The Preparation Of Accounts

At the time of approving the accounts and as detailed in the Trustees' report the Trustees have considered the impact of Covid-19 on the charity and the Trustees have a reasonable expectation that the charity 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 accounts. The Charity operates Covid safe practices and procedures.

At the time of preparing accounts the trustees have reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The trustees therefore continue to operate the going concern basis of accounting in the preparation of accounts.

1k. Policy For Cash At Bank And In Hand

Cash at bank and in hand includes cash and short term liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1l. Policy For Creditors And Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement value amount after allowing for any discount due.

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Pavilion Pre-School (Aigburth)

1m. Policy For Financial Instruments

The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2. DIRECTORS AND EMPLOYEES

Particulars of employees (including directors) are shown below:

Employee costs during the year amounted to:
Wages and salaries
Pension costs
The average weekly numbers of employees during the year were as follows:
Management and administration
No Trustee received any remuneration for their services as a Trustee.
3. EMPLOYEES
Average number of employees
No Trustee received any remuneration for their services as a Trustee.
4. PENSION CONTRIBUTIONS
Pension contributions
2021
£
109,940
720
110,660
2021
No.
13
13
2021
No.
13
2021
£
720
720
2020
£
-
-
-
2020
No.
-
-
2020
No.
-
2020
£
-
-

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Pavilion Pre-School (Aigburth)

5. TANGIBLE FIXED ASSETS

Land
And
Fixtures
Buildings and
Fittings
Total
£ £ £
Cost
Additions 398,686 26,708 425,394
At 31/08/2021 398,686 26,708 425,394
Depreciation
For the year 7,974 4,006 11,980
At 31/08/2021 7,974 4,006 11,980
Net Book Amounts
At 31/08/2021 390,712 22,702 413,414
Land held by Pavilion Pre-School (Aigburth) Charity number 518169 is being transferred to Pavilion Pre-School (Aigburth) Charity
Number 1182861. Land and Building additions of £398,686 includes £136,311 additions paid for by the unincorporated Charity number
518169.

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Taxation and social security
Other creditors
7. UNRESTRICTED FUNDS
General fund
Brought
forward
£
-
-
Incoming
resources
£
211,755
211,755
2021
£
500
1,200
1,700
Outgoing
resources
Transfers
£
£
(134,042)
-
(134,042)
-
2021
£
500
1,200
1,700
Outgoing
resources
Transfers
£
£
(134,042)
-
(134,042)
-
2020
£
-
-
-
Carried
forward
£
77,713
- 77,713

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Pavilion Pre-School (Aigburth)

8. RESTRICTED FUNDS

Eleanor Rathbone Trust Capital Fund
The Foyle Foundation Capital Fund
Sundry Capital Donations
Power to Change
Groundwork UK
Funds Transferred from Unincorporated Charity
Brought
forward
£
-
-
-
-
-
-
-
Incoming
resources
£
5,000
9,700
2,748
170,000
1,000
205,347
393,795
Outgoing
resources
£
(141)
(273)
(78)
(4,788)
(28)
(5,783)
(11,091)
Transfers
£
-
-
-
-
-
-
-
Carried
forward
£
4,859
9,427
2,670
165,212
972
199,564
382,704

Eleanor Rathbone Trust Capital Fund

Grant funding for Big Build project

The Foyle Foundation Capital Fund

Grant funding for Big Build project

Sundry Capital Donations

Donations towards Big Build project

Power to Change

Grant funding for Big Build project

Groundwork UK

Grant funding for Big Build project

Funds Transferred from Unincorporated Charity Grant funding for Big Build project

9. RELATED PARTY TRANSACTIONS

There are no related party transactions to disclose.

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Pavilion Pre-School (Aigburth)

10. ANALYSIS OF RESOURCES EXPENDED

2021 2020
Educational Activities and Materials 4,021 -
Insurance and HR 9,297 -
Premises 1,548 -
Staff Costs 109,460 -
Administration 7,627 -
Governance 1,200 -
Depreciation 11,980 -
__ __
145,133 -
__ __

11. INCOMING RESOURCES

2021 2020
Big Build Restricted Funds Transferred From Unincorporated Charity 518169 205,347 -
Eleanor Rathbone Trust Capital Grant 5,000 -
The Foyle Foundation Capital Grant 9,700 -
Power To Change Capital Grant 170,000 -
Groundwork UK Capital Grant 1,000 -
Sundry Capital Grants 2,748 -
Unrestricted Funds Transferred from Unincorporated Charity 518169 78,815 -
Liverpool City Council Funding for Pre- School Activity 117,241 -
Fees 8,966 -
Snack Charges 2,665 -
Lunchtime supervision 94 -
Clubs 2,006 -
Registration Fees 120 -
Fund Raising 1,848 -
__ __
605,550 -
__ __

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Pavilion Pre-School (Aigburth)

12. NET ASSETS BY FUND

Unrestricted
Funds
Tangible Fixed Assets
30,710
Net Current Assets
47,003
_
77,713
_

13. NOTES TO THE CASHFLOW STATEMENT
13a. Reconciliation of operating profit to net cash flow from operating activities
Operating profit
Depreciation of tangible assets
Increase in creditors
Net cash inflow from operating activities
13b. Analysis of changes in cash and cash equivalents during the year
Net cash inflow
Balance at 31/08/2021
13c. Analysis of changes in financing year
Share
Capital
£
Restricted
Funds
382,704
-
_
382,704
_

2021
£
48,703
48,703
Total
Funds
413,414
47,003
_
460,417
_

£
460,417
11,980
1,700
474,097
2020
£
-
-
Loans and
finance
lease
obligations
£
2020
£
-
-

page 20