OpenCharities

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2022-12-31-accounts

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FRITTENDEN�PRE�SCHOOL�

TRUSTEES�REPORT�

FOR�THE�YEAR�ENDED�31�DECEMBER�2022�

The�trustees�submit�their�annual�report�and�financial�statements�of�Frittenden�Preschool�(“the� charity”)�for�the�year�ended�31�December�2022.�The�trustees�confirm�that�the�annual�report�and� financial�statement�of�the�charity�comply�with�current�statutory�requirements,�the�requirements�of� the�charity’s�governing�document�and�the�provisions�of�the�Statement�of�Recommended�Practice� (SORP)�“Accounting�and�Reporting�by�Charities”�issued�in�March�2005�

Structure,�governance�and�management�

The�charity’s�objectives�are�to�establish�and�run�a�Preschool�to�advance�the�education�of�Preschool� children.�

The�trustees�are:�

Mrs�Claire�Deaves� Mrs�Emily�Walczak� Mr�Alex�Davies� Mrs�Joanna�Beech�

The�charity�is�governed�by�a�board�of�three�trustees�who�are�officers�of�the�committee�and�three� property�trustees�and�operates�a�Preschool�with�a�Committee�and�staff.�

Constitution�

The�charity�is�governed�under�a�Constitution�(Preschool�Learning�Alliance�Model�Preschool� Constitution�2011)�signed�6�March�2018�and�is�a�registered�charity.�

Organisational�structure�and�decision�making�

The�day�to�day�management�of�the�charity�is�under�the�control�of�a�management�committee� comprising�the�Chair,�Treasurer�and�Secretary.�The�management�committee�is�required�to�obtain� prior�approval�from�the�Property�Trustees�for�all�non�operational�and�capital�expenditure�in�excess� of�£2000.�

Risk�management�

The�management�committee�has�undertaken�a�risk�assessment�of�all�activities�organised�by�the� Preschool�in�furtherance�of�its�objectives�and�of�the�Preschool�facilities�and�this�is�reviewed�on�an� annual�basis.�The�Property�Trustees�have�assessed�the�major�risks�to�which�the�charity�is�exposed,� and�are�satisfied�that�systems�are�in�place�to�mitigate�exposure�to�major�risks.�

Objectives�and�activities�

In�shaping�our�objectives�for�the�year�and�planning�our�activities,�the�trustees�have�considered�the� Charity�Commission’s�guidance�on�public�benefit,�including�the�guidance�“Public�Benefit:�Running�a� Charity�(PB2)”.�

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The�objective�of�the�charity�is�to�advance�the�development�and�education�of�local�children�and� promote�an�environment�which�is�safe,�happy�and�conducive�to�individual�and�group�play.�The� Preschool�has�been�established�for�38�years�and�has�a�full�complement�of�staff,�including�a�Preschool� Manager�and�Preschool�Deputy�Manager.�

The�Preschool�aims�to:�

�Children�are�encouraged�to�feel�part�of�their�community�by�taking�part�in�visits�to�local�facilities�and� places�of�interest�in�the�village�as�well�as�receiving�organised�visitors�from�members�of�the�local� community.�The�charity�encourages�each�child�to�progress�towards�the�Early�Learning�Goals,�as�set� out�by�the�Department�for�Education.�The�voluntary�management�committee�and�parents,�together� with�the�staff,�undertake�fundraising�activities�as�required.�

Financial�review�for�Year�Ending�31�December�2022�

The�accounts�have�been�compiled�for�submission�to�the�Charity�Commission�once�they�receive�the� trustee�report.�

As�of�31�December�2022,�the�charity�had�a�total�of�£30,240�in�its�bank�accounts�at�HSBC.�This� consisted�of�£6,629.40�in�the�two�reserve�accounts�and�£23,610�in�the�current�account.�

The�reserve�accounts�have�maintained�a�consistent�balance�since�last�year�when�there�was�£6,619�as� reserves.��

The�Preschool�made�payments�of�£51,612�in�the�calendar�year.�Money�received�was�£50,405.�The� Preschool�shows�a�negative�difference�(loss)�of�£1,207.�

Government�funding�provides�570�hours�of�free�early�education�per�child�year.�This�is�normally�taken� as�15�hours�per�week�for�3�4�year�olds.�Eligible�2�year�olds�can�also�receive�“Free�for�two”�funding.� The�amount�of�government�funding�received�per�child�per�hour�for�2021/22�was�£4.31�for�3�4�year� olds�and�£5.39�for�2�year�olds.�The�amount�of�government�funding�received�by�the�Preschool�was� £36,681.�Parents�whose�children�are�ineligible�for�government�funding�or�who�want�additional�hours� for�their�children�currently�pay�£6.50�per�hour�(increased�in�September�2021�from�£5.00�per�hour).� In�addition,�all�parents�are�asked�to�make�a�voluntary�donation�of�£0.50�per�three�hour�session�to� cover�additional�costs.�Funding�from�parents�totalled�£12,875.�

The�loss�made�by�the�charity�this�year�was�caused�by�a�number�of�factors,�including�some�staff� absences�which�needed�to�be�covered,�the�number�of�contracted�hours�required�to�recruit�a�new� staff�member�being�greater�than�those�worked�by�the�outgoing�member�of�staff,�the�need�to� increase�staff�pay�to�compensate�for�inflation�and�cost�increases�for�bought�in�goods�and�services.� The�losses�have�been�mitigated�to�a�degree�by�increasing�the�fees�paid�by�parents�and�some�small�

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increases�in�the�hourly�rates�provided�by�the�Government.�Despite�the�current�financial�climate,�the� charity�currently�sustains�itself�financially�and�remains�a�reasonable�margin�above�its�reserves,�with� this�year’s�loss�offsetting�gains�made�in�previous�years.�

Reserves�policy�

It�is�the�policy�of�the�charity�that�unrestricted�funds�which�have�not�been�designated�for�a�specific� use�should�be�maintained�at�a�level�equivalent�to�between�three�and�six�month’s�expenditure.�The� trustees�consider�that�reserves�at�this�level�will�ensure�that,�in�the�event�of�a�significant�drop�in� funding,�they�will�be�able�to�continue�the�charity’s�activities�whilst�consideration�is�given�to�ways�in� which�additional�funds�can�be�raised.�The�committee�considers�that�this�obligation�has�been�met�for� the�financial�period�ending�31�December�2022.�Consideration�will�be�given�during�Financial�Year� 2023�to�transferring�additional�funds�from�the�current�account�to�the�reserves�accounts�to�ensure� that�this�money�is�better�ring�fenced,�with�the�equivalent�of�three�month’s�non�discretionary� expenditure�(i.e.�staff�costs,�building�occupation�costs�and�insurances)�held�in�the�reserves�account.�

Financial�recommendations�

The�charity�accounts�for�the�period�ending�31�December�2022�have�shown�the�charity�to�have�made� a�small�loss.�However,�the�charity�remains�financially�viable�and�could�sustain�itself�for�several�years� at�the�current�rate�even�without�taking�action�to�reduce�these�losses.��

However,�given�the�continued�increases�in�outgoings�caused�by�inflation�and�the�need�to�retain�staff,� our�outgoings�will�only�continue�to�increase.�The�preschool�relies�heavily�on�its�highly�qualified�and� dedicated�staff�and�it�is�important�that�it�can�offer�rates�of�pay�which�remain�attractive,�particularly� when�considering�the�10%�increase�in�minimum�wage�coming�into�force�on�1�April�2023.��

The�Government�has�announced�some�increases�to�funding�rates�that�will�offset�increases�in� outgoings�somewhat,�and�consideration�will�need�to�be�given�to�raising�the�fees�paid�by�parents� further�in�September�2023.�However,�it�is�considered�likely�that�the�preschool�will�continue�to�make� a�loss�for�at�least�the�next�year.�

This�report�was�approved�by�the�Board�of�Trustees�on�19�May�2023�and�signed�on�its�behalf�by:�

Claire�Deaves�(Chair)_______�

Alex�Davies�(Treasurer)_____

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Independent�Examiner's�Report�to�the�Trustees�of�Frittenden�Pre�School

I�report�on�the�accounts�of�the�charity�for�the�year�ended�31�December�202��which�comprise�the� trustees’�report,�receipts�and�payments�account,�and�statement�of�assets�and�liabilities.�

Respective�responsibilities�of�trustees�and�examiner

The��charity’s��trustees��are��responsible��for��the��preparation��of��the��accounts.���The��charity’s��trustees�� consider�that�an�audit�is�not�required�for�this�year�under�section�144(2)�of�the�Charities�Act�2011�(the� 2011�Act)�and�that�an�independent�examination�is�needed.�

It�is�my�responsibility�to:�

Basis�of�independent�examiner's�report

My�examination�was�carried�out�in�accordance�with�the�general�Directions�given�by�the�Charity� Commission.��An�examination�includes�a�review�of�the�accounting�records�kept�by�the�charity�and�a� comparison�of�the�accounts�presented�with�those�records.��It�also�includes�consideration�of�any� unusual�items�or�disclosures�in�the�accounts�and�seeking�explanations�from�you�as�trustees�concerning� any�such�matters.��The�procedures�undertaken�do�not�provide�all�the�evidence�that�would�be�required� in�an�audit�and�consequently�no�opinion�is�given�as�to�whether�the�accounts�present�a�“true�and�fair� view”�and�the�report�is�limited�to�those�matters�set�out�in�the�statement�below.�

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Independent examiner's statement

In connection with my examination, no matter has come to my attention:

have not been met; or

Richard Nelson FCCA

Breckman & Company Ltd Chartered Certified Accountants

49 South Molton Street London W1K 5LH

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FRITTENDEN PRE-SCHOOL

RECEIPTS AND PAYMENTS ACCOUNT

YEAR ENDED 31 DECEMBER 2022

RECEIPTS
Fees from parents
Voluntary contributions
Government funding
Fundraising
Donations
Bank Interest
HMRC Grants
Sundries
PAYMENTS
Staff wages including employer's NI
Employer Pension Contributions
Insurance
Professional fees
Rates/utilities
Registration fees
Equipment/materials
Printing/postage/stationery
Telephone
Consumables/staff costs
Advertising/photographs
Website hosting
Gratuities
Bank charges
Building maintenance and services
Sundries
NET (DEFICIT)
Cash funds brought forward
Cash funds carried forward
12,430
535
36,681
364
350
13
-
831
43,848
846
774
1,796
484
-
-
3,801
63
-
743
£
£
51,204
52,355
(1,151)
31,447
30,296

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FRITTENDEN PRE-SCHOOL

STATEMENT OF ASSETS AND LIABILITIES

YEAR ENDED 31 DECEMBER 2022

Assets
Debtors
Bank
Cash
Total cash funds
Liabilities
Creditors
Accruals
Total net assets
£
-
30,105
191
30,296
(181)
(1,035)
29,080