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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:�
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Inspire�curiosity,�independence�and�a�life�long�love�of�learning�to�help�our�children�become� contributing�members�of�our�community�and�the�world.�
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In�a�nurturing�play�based�environment,�our�curriculum�builds�children’s�self��esteem�and� problem��solving�skills�while�developing�respect�for�themselves�and�others.�
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�provide�a�service�to�the�local�community�by�providing�a�happy�and�relaxed�environment�for� children�of�any�culture�and/or�ability�to�learn�through�play.�
�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�
����������������������������������������������������������
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:�
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examine�the�accounts�under�section�145�of�the�2011�Act;
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follow�the�procedures�laid�down�in�the�general�Directions�given�by�the�Charity�Commission under�section�145(5)(b)�of�the�2011�Act;�and
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state�whether�particular�matters�have�come�to�my�attention.
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:
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1 which gives me reasonable cause to believe that, in any material respect, the requirements:
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to keep accounting records in accordance with section 130 of the 2011 Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met; or
- 2 to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Richard Nelson FCCA
Breckman & Company Ltd Chartered Certified Accountants
49 South Molton Street London W1K 5LH
- ��Ma�202�
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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 |