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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)”.� 



���������������������������������������������������������� 

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:� 

- Inspire�curiosity,�independence�and�a�life�long�love�of�learning�to�help�our�children�become� contributing�members�of�our�community�and�the�world.� 

- In�a�nurturing�play�based�environment,�our�curriculum�builds�children’s�self��esteem�and� problem��solving�skills�while�developing�respect�for�themselves�and�others.� 

- �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)___________________________________� 



���������������������������������������������������������� 

## **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:� 

- examine�the�accounts�under�section�145�of�the�2011�Act; 

- follow�the�procedures�laid�down�in�the�general�Directions�given�by�the�Charity�Commission under�section�145(5)(b)�of�the�2011�Act;�and 

- 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.� 



���������������������������������������������������������� 

## **Independent examiner's statement** 

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

- 1 which gives me reasonable cause to believe that, in any material respect, the requirements: 

   - to keep accounting records in accordance with section 130 of the 2011 Act; and 

   - 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� 



���������������������������������������������������������� 

## **FRITTENDEN PRE-SCHOOL** 

## **RECEIPTS AND PAYMENTS ACCOUNT** 

## **YEAR ENDED 31 DECEMBER 2022** 

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





���������������������������������������������������������� 

## **FRITTENDEN PRE-SCHOOL** 

## **STATEMENT OF ASSETS AND LIABILITIES** 

## **YEAR ENDED 31 DECEMBER 2022** 

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



