Charity registration number 1193532 (England and Wales)
STEPPING STONES PRE-SCHOOL C.I.O.
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
STEPPING STONES PRE-SCHOOL C.I.O.
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Statement of financial position | 5 |
| Notes to the financial statements | 6 - 12 |
STEPPING STONES PRE-SCHOOL C.I.O.
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mrs S West | |
|---|---|---|
| Mrs A Collins | ||
| Mrs L Mullenger | ||
| Mrs A Parker | ||
| Mr P Ballard | ||
| Charity registration | England and Wales | 1193532 |
| Independent examiner | I G C Piper, partner | |
| Whitings LLP | ||
| George Court | ||
| Bartholemews Walk | ||
| Ely | ||
| Cambridgeshire | ||
| CB7 4JW | ||
| Bankers | Zempler Bank |
STEPPING STONES PRE-SCHOOL C.I.O.
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The trustees present their annual report and financial statements for the Year ended 31 August 2025.
Stepping Stones Pre-School (registered charity number 1137396) took the decision to become formally recognised and registered with the Charity Commission on 15 February 2021 as a C.I.O. The old charity was formally closed on 31 March 2024 and all assets and liabilities totalling £61,288 were transferred to the new charity at 1 April 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)".
Objectives and activities
The aim of the pre-school is to enhance the development and education of children under statutory school age by encouraging parents to understand and provide for the needs of their children through community groups and by:
-
Offering appropriate play facilities and training courses, together with the right of parents to take responsibility for and to become involved in the activities of such groups, ensuring that such groups offer opportunities for all children, regardless of race, religion or means.
-
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 areas.
-
Investigating and adhering to and furthering the aim of the Pre-School Playgroups Association.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Public benefit
The Trustees confirm that they have been referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity aims and objectives and setting the grant making policy for the year.
Activities
a. Review of activities
The committee are pleased to have seen the pre-school consolidate its position this year. The move to its new permanent home has seen a benefit when reviewing the Charity aims and objectives and setting the grant making policy for the year.
Achievements and performance
Significant activities and achievements against objectives
Financial review
The net income over expenditure for the period amount to £25,980. The Trustees are very pleased with the results brought about by the extraordinary hard work from the staff and committee.
- 1 -
STEPPING STONES PRE-SCHOOL C.I.O.
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
Reserves policy
Reserves are held in an interest bearing account, with the trustees holding the opinion that notwithstanding the low rates of interest available they should adopt a risk free approach.
The pre-school has increased the emergency reserves balance by £15,528 to £48,750 representing 3 months expenditure.
Structure, governance and management
The pre-school began in 1998 and is governed by a standard pre-school constitution. This constitution was updated at the 2009 Annual General Meeting. The day to day running of the pre-school is undertaken by an elected management committee.
The trustees who served during the Year and up to the date of signature of the financial statements were: Mrs S West
Mrs A Collins Mrs L Mullenger Mrs A Parker Mr P Ballard
Recruitment and appointment 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. Trustees are appointed by the members of the committee at the Annual General Meeting (AGM) if and when necessary.
The trustees' report was approved by the Board of Trustees.
Shelley West
.............................. Shelley West (Dec 15, 2025 14:22:43 GMT) Mrs S West
Trustee
15/12/2025 Date: .............................................
- 2 -
STEPPING STONES PRE-SCHOOL C.I.O.
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF STEPPING STONES PRE-SCHOOL C.I.O.
I report to the trustees on my examination of the financial statements of Stepping Stones Pre-School C.I.O. (the charity) for the Year ended 31 August 2025.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011.
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared the financial statements in accordance with the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with UK Generally Accepted Accounting Practice.
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:
-
1 accounting records were not kept in respect of the charity as required by section 130 of the Charities Act 2011.
-
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 financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements 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.
I G C Piper, partner Whitings LLP
George Court Bartholemews Walk Ely Cambridgeshire CB7 4JW Date: ............................ 15/12/2025
- 3 -
STEPPING STONES PRE-SCHOOL C.I.O.
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2025
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| year ended 31 | 5 months | ||
| August 2025 | ended 31 | ||
| August 2024 | |||
| Notes | £ | £ | |
| Income from: | |||
| Grants | 2 | 205,843 | 70,596 |
| Charitable activities | 3 | 12,981 | 5,342 |
| Other trading activities | 4 | 1,529 | - |
| Investments | 5 | 402 | 105 |
| Total income | 220,755 | 76,043 | |
| Expenditure on: | |||
| Charitable activities | 6 | 194,775 | 69,811 |
| Total expenditure | 194,775 | 69,811 | |
| Net income and movement in funds | 25,980 | 6,232 | |
| Reconciliation of funds: | |||
| Fund balances at 1 September 2024 | 71,229 | 64,997 | |
| Fund balances at 31 August 2025 | 97,209 | 71,229 |
The statement of financial activities includes all gains and losses recognised in the Year. All income and expenditure derive from continuing activities.
- 4 -
STEPPING STONES PRE-SCHOOL C.I.O.
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2025
| Notes Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities The funds of the charity Unrestricted funds 15 |
2025 £ 1,988 131,361 133,349 (44,224) |
£ 8,084 89,125 97,209 97,209 97,209 |
2024 £ 1,249 93,497 94,746 (27,812) |
£ 4,295 66,934 |
|---|---|---|---|---|
| 71,229 | ||||
| 71,229 | ||||
| 71,229 |
The financial statements were approved by the trustees on ......................... 15/12/2025
.............................. Shelley West Mrs S West Shelley West (Dec 15, 2025 14:22:43 GMT) Trustee
- 5 -
STEPPING STONES PRE-SCHOOL C.I.O.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
1 Accounting policies
Charity information
The pre-school began in 1998 and is governed by a standard pre-school constitution. This constitution was updated at the 2009 Annual General Meeting. The day to day running of the pre-school is undertaken by an elected management committee.
1.1 Reporting period
The figures are not comparable as the figures relate to the 5 months ended 31 August 2024 as opposed to a full 12 months. This is because the charity started in April 2024.
1.2 Basis of preparation
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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 is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3 Going concern
At the time of approving the financial statements, 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 financial statements.
1.4 Charitable funds
- Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.5 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 or deeds of covenant is recognised at the time of the donation.
- 6 -
STEPPING STONES PRE-SCHOOL C.I.O.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
1 Accounting policies
(Continued)
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.6 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.7 Tangible fixed assets
Tangible fixed assets 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 lives on the following bases:
Plant and equipment
Straight line over 10 years
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 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.9 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. Bank overdrafts are shown within borrowings in current liabilities.
1.10 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 charity 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.
- 7 -
STEPPING STONES PRE-SCHOOL C.I.O.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025
1 Accounting policies
(Continued)
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.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.11 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Income from grants
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Grants | 205,843 | 70,596 | |
| 3 | Income from charitable activities | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Income | |||
| Parent fees | 12,981 | 5,342 |
- 8 -
STEPPING STONES PRE-SCHOOL C.I.O.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
4 Income from other trading activities
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Fundraising events | 1,529 | - | |
| 5 | Income from investments | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Interest receivable | 402 | 105 | |
| 6 | Expenditure on charitable activities | ||
| Expenses | Expenses | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Direct costs | |||
| Staff costs | 151,907 | 56,334 | |
| Depreciation and impairment | 951 | 477 | |
| Rent and utilities | 11,362 | 5,556 | |
| Sundries | 7,939 | 1,676 | |
| Bank charges | 336 | 176 | |
| Stationery | 1,442 | 422 | |
| Telephone and broadband | 2,336 | 1,188 | |
| Play materials and resources | 10,079 | 1,778 | |
| Training | 1,331 | 1,271 | |
| Accountancy | 1,175 | 933 | |
| Decorating | 5,917 | - | |
| 194,775 | 69,811 | ||
| Analysis by fund | |||
| Unrestricted funds | 194,775 | 69,811 | |
| 7 | Net movement in funds | 2025 | 2024 |
| £ | £ | ||
| The net movement in funds is stated after charging/(crediting): | |||
| Fees payable for the independent examination of the charity's financial | |||
| statements | 1,175 | 935 | |
| Depreciation of owned tangible fixed assets | 951 | 477 |
- 9 -
STEPPING STONES PRE-SCHOOL C.I.O.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the Year.
9 Employees
The average monthly number of employees during the Year was:
| Employment costs Wages and salaries Other pension costs |
2025 Number 10 2025 £ 149,067 2,840 151,907 |
2024 Number 10 |
|---|---|---|
| 2024 £ 54,268 2,066 |
||
| 56,334 |
There were no employees whose annual remuneration was more than £60,000.
10 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
11 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Plant and | |
| equipment | |
| £ | |
| Cost | |
| At 1 September 2024 | 4,772 |
| Additions | 4,740 |
| At 31 August 2025 | 9,512 |
| Depreciation and impairment | |
| At 1 September 2024 | 477 |
| Depreciation charged in the Year | 951 |
| At 31 August 2025 | 1,428 |
| Carrying amount | |
| At 31 August 2025 | 8,084 |
| At 31 August 2024 | 4,295 |
- 10 -
STEPPING STONES PRE-SCHOOL C.I.O.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
| 11 Tangible fixed assets 12 Debtors Amounts falling due within one year: Other debtors 13 Creditors: amounts falling due within one year Other taxation and social security Other creditors Accruals and deferred income 14 Retirement benefit schemes Defined contribution schemes Charge to profit or loss in respect of defined contribution schemes |
(Continued) 2025 2024 £ £ 1,988 1,249 2025 2024 £ £ 1,195 1,980 41,973 24,950 1,056 882 44,224 27,812 2025 2024 £ £ 2,840 2,066 |
(Continued) 2025 2024 £ £ 1,988 1,249 2025 2024 £ £ 1,195 1,980 41,973 24,950 1,056 882 44,224 27,812 2025 2024 £ £ 2,840 2,066 |
|---|---|---|
| 2024 £ 1,980 24,950 882 |
||
| 27,812 | ||
| 2024 £ 2,066 |
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
15 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 | Incoming | Resources | Transfers | At 31 August | |
|---|---|---|---|---|---|
| September | resources | expended | 2025 | ||
| 2024 | |||||
| £ | £ | £ | £ | £ | |
| Emergency operating reserve | 33,222 | - | - | 15,528 | 48,750 |
| General funds | 38,007 | 220,755 | (194,775) | (15,528) | 48,459 |
| 71,229 | 220,755 | (194,775) | - | 97,209 |
- 11 -
STEPPING STONES PRE-SCHOOL C.I.O.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
| 15 | Unrestricted funds | (Continued) | ||||
|---|---|---|---|---|---|---|
| Previous 5 months: | At 1 | Incoming | Resources | Transfers | At 31 August | |
| September | resources | expended | 2024 | |||
| 2023 | ||||||
| £ | £ | £ | £ | £ | ||
| Emergency operating reserve | - | - | - | 33,222 | 33,222 | |
| General funds | 64,997 | 76,043 | (69,811) | (33,222) | 38,007 | |
| 64,997 | 76,043 | (69,811) | - | 71,229 |
16 Related party transactions
There were no disclosable related party transactions during the Year (2024 - none).
- 12 -