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2021-08-31-accounts

Charity No: 298642

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

FOR

MUCH HADHAM PRE-SCHOOL

Crown House 151 High Road Loughton Essex IG10 4LG

MUCH HADHAM PRE-SCHOOL

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 August 2021

Page
General Information 1
Report of the Trustees 2 - 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 - 13
Report of the Independent Examiner 14
Income and Expenditure Account 15

MUCH HADHAM PRE-SCHOOL

GENERAL INFORMATION for the Year Ended 31 August 2021

TRUSTEES: Mrs Stephanie White (Chair) Mrs Emma Riedo (Secretary) Mr Ben Catt (Treasurer) Mrs Gemma Greenwood Mrs Natalie Vella Mrs Laura Clempson Mrs Kat Moore Mrs Hannah Kendall Mrs Kristin Medley Mrs Lucy Woodcock (joined 17 May 2021)

ADDRESS: Oudle Lane Much Hadham Hertfordshire SG10 6DQ

INDEPENDENT EXAMINER :

Jan Rickler FCA Chartered Accountant Alwyns LLP Crown House 151 High Road Loughton Essex IG10 4LG

CHARITY REGISTRATION NUMBER : 298642

Page 1

MUCH HADHAM PRE-SCHOOL

REPORT OF THE TRUSTEES for the Year Ended 31 August 2021

Much Hadham Pre-School (formerly Much Hadham Playgroup) is a registered charity and a member of the Early Years Alliance (the trading name of the Pre-school Learning Alliance). We aim to provide care, education, and fun for the pre-school aged children of Much Hadham and the surrounding area and are regulated by Ofsted.

The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102). The report includes an account of those activities undertaken by the charity to further its charitable purposes for the public benefit. They have also complied with the duty in the Charities Act 2011 to have regard to public benefit guidance published by the Commission.

The committee members for the year 2021 were:

Mrs Stephanie White (Chair) Mr Ben Catt (Joint Treasurer) Mrs Lucy Woodcock (Joint Treasurer – joined 17 May 2021) Mrs Laura Clempson Mrs Kat Moore Mrs Hannah Kendall Mrs Kristin Medley Mrs Emma Riedo Mrs Gemma Greenwood Mrs Natalie Vella

The Committee was elected for a term of one year, and most will become eligible for re-election, provided they have not already served more than 6 years. 60% of the Committee must be parents of children at PreSchool at the time of their election. Election is by voting by all attending the Annual General Meeting. All parents of Pre-School children are invited to that meeting.

Chairman’s Report

Much Hadham Pre-School (“MHPS”) operates in a purpose-built building in the grounds of St Andrew’s CofE Primary School (“St Andrew’s School”). The building and the land on which it stands is owned by the Diocese of St Albans, which also owns St. Andrew’s School. MHPS has a 50-year lease over the building at a rent of £10 per annum. This lease gives MHPS the right to use the building until 12:45pm each day. St Andrew’s School has the right to use the building in the afternoons. However, St Andrew’s School opened its own Early Years Foundation Unit in September 2011 which means that it no longer uses the Pre-School building. Therefore, with the agreement of St Andrew’s School, MHPS continues to have sole use of the building and runs additional lunch club and afternoon sessions to complement St Andrew’s Schools Early Years Foundation Unit, which only runs in the mornings. Accordingly, many of the children attending St Andrew’s Early Years Foundation Unit in the mornings make use of the Pre-School lunch club and afternoon sessions on at least one day of the week. In addition, since September 2019 MHPS runs breakfast and after-school clubs to support the families of St Andrew’s School.

St Andrew’s School has a duty to maintain the building but budgetary constraints within St Andrew’s School and the close working relationship and co-operation between St Andrew’s School and Much Hadham PreSchool have meant that, in practice, Much Hadham Pre-School has always largely met the cost of maintenance of the building. As St Andrew’s is not currently using the building the running costs fall to Much Hadham PreSchool.

Page 2

MUCH HADHAM PRE-SCHOOL

REPORT OF THE TRUSTEES for the Year Ended 31 August 2021

Day to Day

Following the enforced closure of MHPS from March 2020 to August 2020 due to the COVID-19 Pandemic it was a delight to be able to re-open the doors of MHPS in September 2020.

Staff carried out rigorous preparations prior to re-opening and implemented new procedures as necessary in line with the advice and guidelines set by the Government.

In the year to August 2021 MHPS has continued to run the following sessions 5 days per week during term time:

Numbers, in the winter term were lower than previous years which was not unexpected given the uncertainty of the ongoing pandemic and the new variants emerging.

COVID-19

Unfortunately, on 5 January 2021 the Government announced a countrywide lockdown of schools.

In line with Government guidelines, MHPS being an early years provider was allowed to remain open subject to certain conditions. After consultation with staff and parents it was decided that MHPS would remain open part-time to support the children and families of MHPS. A total of 4 staff, 3 days a week worked and the remainder were furloughed.

The committee and staff continued to keep abreast of the Governments guidelines throughout this period and following the Government’s announcement of reopening schools on 08 March 2021, MHPS welcomed back the children who had been at home during this time.

Numbers of children attending slowly increased in the remainder of the spring term and again the summer terms as the outlook became more positive. Breakfast and afterschool club numbers started lower as most parents were working from home due to Government guidelines, however these also started to increase again too. As we move forwards through the pandemic, we anticipate the number of children to rise and we have had a number of enquiries for new starters in September 2021.

Staff

The MHPS staff as at the year ending August 2021 are:

Page 3

MUCH HADHAM PRE-SCHOOL

REPORT OF THE TRUSTEES for the Year Ended 31 August 2021

Staffing levels have enabled us to have at least 4 members of staff per day when required and to cover the additional breakfast and after-school sessions offered. As necessary, staff have attended additional professional development training as appropriate including safety and first aid training in this financial year. All staff hold valid first aid certificates, child protection knowledge is up to date and appropriate staff hold the necessary food hygiene certificate.

The Covid-19 pandemic has placed all the staff under additional pressure and in light of the part closure of MHPS for the first 3 months of 2021 this culminated in 6 members of staff on the Government’s furlough scheme. The staff were very accepting of the decision by the committee and have behaved very professionally throughout the situation. We are grateful for their support and hope they have continued to feel valued throughout.

Sadly, in July 2021 Mrs Annica Farley handed in her resignation having decided after working at MHPS for 12 years, to pursue other opportunities. In her time with MHPS Mrs Farley was a valued member of staff and we thank her for all her hard work and wish her all the best in her future endeavours.

In consultation with the Manager and Deputy Manager the Committee has appointed Mrs Alison Woodley to take up the role of Pre-School Office Administrator in September 2021.

In addition Ms Jess Horton who has been on work placement with MHPS has been offered a permanent position as Pre-School Practitioner from September 2021.

Much Hadham Pre-School continues to be very proud of its excellent staff and continues to be committed to their training and development. The Committee thank all of our wonderful staff for their hard work and dedication throughout the year.

Fundraising and Events

Sadly, due to the COVID-19 pandemic social activities that would have normally taken place such as the Pumpkin party, Nativity, Lambing morning, Sports Day and Leavers’ party did not go ahead with parents and siblings. A Pumpkin Trail, was organised and a Christmas party and End of school year party went ahead with just the pre-school children involved.

In addition the MHPS Summer Ball which had been rearranged from June 2020 to September 2020 had to be postponed again. Regrettably, significant costs had already been expended towards the organising of the Summer Ball at the time the pandemic hit. However, we are grateful that majority of our suppliers for this event who have so far been willing to move the bookings to a future date. At time of reporting, this is now planned for 18 June 2022 and we look forward to holding a fantastic 25[th] anniversary Ball and hope this proves an excellent source of fundraising.

Fundraising is an area to be considered by the committee in the upcoming year. The general events only account for a small amount of fundraising profit, which although beneficial needs considering with the wider picture, and the future position regarding the Summer Ball also needs to be considered.

Our Assisted Places Scheme funded by our fundraising events remained able to offer up to 2 sessions per week for each of 2 children who would benefit from the opportunity to attend Much Hadham Pre-School but would not otherwise be able to do so. In the year ending August 2021 no funded places were taken up.

Page 4

MUCH HADHAM PRE-SCHOOL

REPORT OF THE TRUSTEES for the Year Ended 31 August 2021

Expenditure

The Much Hadham Pre-School Committee continues to be conscious that (for the reasons set out above) the costs of maintaining the Pre-School building in future years will have to be substantially (if not wholly) borne by Much Hadham Pre-School. The Committee therefore continue to reserve funds for this purpose.

Given the continued effects of the COVID-19 Pandemic during the year ending August 2021 and the uncertainty this brought to financials any unnecessary additional expenditure was halted and will be considered once the financial effect of the COVID-19 Pandemic is further known.

General

The Much Hadham Pre-School Committee continued the appointment of Day Coral Mead to carry out the administrative aspects of the Treasurer role such as book keeping, salaries, pensions, invoicing etc and thanks them for their diligence in their role.

Finally, a huge thank you to all members of the Much Hadham Pre-School Committee for all their efforts this year. All members of the Committee have worked very hard and have been most generous with their time and skills and MHPS is indebted for the support.

Treasurer’s Report

The Statement of Financial Activities which follows has been reported on by an Independent Examiner.

As at 31 August 2021, the Pre-School had unrestricted funds of £136,759.

For the year ended 31 August 2021, Much Hadham Pre-School generated a net negative movement in funds of £11,118 compared to a negative movement of £10,309 in the prior year. Financial performance was heavily impacted by the continuing COVID-19 pandemic, which led to a reduced fee income accordingly. Fee income was up on 2020 but down materially and costs (which are largely fixed) were broadly flat. The Pre-School benefitted from using the Government’s furlough scheme and received a cash grant of £11,769 during the financial year (in 2020 this was £18,247).

Our income of £105,354 included (i) £93,404 of childcare funding provided via Hertfordshire County Council and fees paid by parents or employer childcare vouchers for sessions not covered by Government funding; (ii) the government furlough grant of £11,769; (iii) bank interest of £7; and (iv) other income of £174.

There was total expenditure in the year of £116,472. Our main costs were salaries (£81,021), utilities (£5,383), building improvement and maintenance (£4,679), catering (£2,510), which is shown in the accounts as ‘Snacks, Milk etc.’ , and materials & equipment (£4,303).

Fundraising activities were nil as it was not possible to hold fundraising events due to the ongoing pandemic and the MHPS Summer Ball had to be postponed again due to the pandemic.

The Committee decided to maintain parent funded fees at £5.00 per hour, in line with Government funding, but have planned an increase in fees in September 2021. We will continue to review our fees each year in light of our financial position, including the reserves we hold.

At the time of writing this report, the severe impact of COVID-19 has continued to influence the finances of Much Hadham Pre-School into 2021/22, but we continue to be financially viable given the prudent reserves position which has been built up over time. We expect the Pre-School to return to a sustainable financial footing with good levels of children registered.

We continue to be positive about the Pre-School’s medium-term future, believing it provides an excellent community service and value for money compared to private sector provision. We will continue to invest in facilities, equipment, staffing levels and training.

Page 5

MUCH HADHAM PRE-SCHOOL

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

for the Year Ended 31 August 2021

The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

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

The trustees are responsible for keeping sufficient accounting records that 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

BY ORDER OF THE BOARD OF TRUSTEES

Mrs Stephanie White

Date: 26 May 2022

Page 6

MUCH HADHAM PRE-SCHOOL

STATEMENT OF FINANCIAL ACTIVITIES

For the Year ended 31 August 2021

INCOME AND ENDOWMENTS FROM:
Donations and legacies
Voluntary income from events
Charitable activities
Other
TOTAL
EXPENDITURE ON:
Raising funds
Charitable activities
Governance costs
TOTAL RESOURCES EXPENDED
NET (EXPENDITURE)
TRANSFERS BETWEEN FUNDS
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
FUNDS BROUGHT FORWARD
FUNDS CARRIED FORWARD		 Notes Unrestricted
Funds
General
£
174
105,173
7
105,354
-
115,172
1,300
116,472
(11,118)
-
(11,118)
147,877
136,759		 Restricted Fund
Playground
Fund
£
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2021
£
174
105,173
7
105,354
-
115,172
1,300
116,472
(11,118)
-
(11,118)
147,877
136,759		 Total
2020
£
-
94,294
195
94,489
-
103,039
1,759
104,798
(10,309)
-
(10,309)
158,186
147,877

Page 7

MUCH HADHAM PRE-SCHOOL

BALANCE SHEET For the Year Ended 31 August 2021

Notes
FIXED ASSETS
Tangible assets
3
CURRENT ASSETS:
Debtors
4
Cash at bank
CREDITORS:Amounts falling
due within one year
5
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES:
FUNDS:
Unrestricted funds		 31.8.21
£
1,660
25,567
112,865
138,432
3,333
135,099
136,759
136,759
136,759		 31.8.20
£
2,168
21,951
127,016
148,967
3,258
145,709
147,877
147,877
147,877

APPROVED AND AUTHORISED FOR ISSUE ON BEHALF OF THE TRUSTEES:

Mrs Stephanie White Chair

Date: 26 May 2022

Page 8

MUCH HADHAM PRE-SCHOOL

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 August 2021

1. ACCOUNTING POLICIES

Accounting convention

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with applicable accounting standards including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, the Charities SORP (FRS 102) ‘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) (Second Edition) and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared to give a ‘true and fair’ view and 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

In accordance with FRS 102 (3.3 A), the Charity is a public benefit entity that has applied the “PBE” prefixed paragraphs.

The financial statements are presented in sterling and rounded to the nearest £1.

Going concern

The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

Income is generated from pre-school children attendance fees, and some are funded by the local Government grants.

Grants

Revenue grants are included in the Income and Expenditure Account in the year to which they relate. All other income is included in the year in which received.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to headings, they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and any impairment losses Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Playground Equipment – 33.3% straight line

Fixtures and Fittings – 33.3% straight line

Cash at bank and in hand

Cash at bank and in hand includes; bank current accounts and bank deposit accounts with no withdrawal limitations.

Page 9

MUCH HADHAM PRE-SCHOOL

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 August 2021

Creditors

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

Financial Instruments

Financial assets and financial liabilities are recognised in the statement of financial position when the Charity becomes a party to the contractual provisions of the instrument.

Trade (including rental) and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the Charity will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank, shortterm bank deposits with an original maturity of three months or less and bank overdrafts which are an integral part of the Charity’s cash management.

Interest bearing bank loans, overdrafts and other loans which meet the criteria to be classified as basic financial instruments are initially recorded at the present value of cash payable to the bank, which is ordinarily equal to the proceeds received net of direct issue costs. These liabilities are subsequently measured at amortised cost, using the effective interest rate method.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for purposes. The cost of raising and administering such funds are charged against the specific fund.

Value Added Tax

The charity is not registered for Value Added Tax. In these Financial Statements, where applicable, expenditure is shown inclusive of VAT.

2. TAXATION

The company is a registered charity as defined in the Charities Act 2011 and as such no taxation has been provided for on the charity’s charitable activities.

Page 10

MUCH HADHAM PRE-SCHOOL

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 August 2021

3. TANGIBLE FIXED ASSETS

COST:
As at 1 September 2020
Additions
As at 31 August 2021
DEPRECIATION:
As at 1 September 2020
Charge for year
As at 31 August 2021
NET BOOK VALUE:
As at 31 August 2021
As at 31 August 2020
4.
DEBTORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
Fees due
Other debtors
Prepayments
5.
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR
Other creditors
Accrued expenses – Accountancy/Payroll		 Fixtures &
Playground
Fittings
Equipment
£
£
5,442
17,107
1,458
-
6,900
17,107
3,274
17,107
1,966
-
5,240
17,107
1,660
-
2,168
-
31.8.21
£
12,507
652
12,408
25,567
31.8.21
£
467
2,866
3,333		 Totals
£
22,549
1,458
24,007
20,381
1,966
22,347
1,660
2,168
31.8.20
£
8,536
1,007
12,408
21,951
31.8.20
£
492
2,766
3,258

Page 11

MUCH HADHAM PRE-SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

for the Year Ended 31 August 2021

6. TRUSTEES’ REMUNERATION AND BENEFITS

There were no trustees’ remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

Trustees’ Expenses

There were no trustees’ expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.

7. STAFF COSTS

STAFF COSTS
Wages and salaries
Employer’s pension
The average number of persons employed during the year was		 31.8.21
£
80,289
732
81,021
No.
11		 31.8.20
£
75,900
729
76,629
No.
10

Page 12

MUCH HADHAM PRE-SCHOOL

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 August 2021

8. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM:
Donations and legacies
Voluntary income from events
Charitable activities
Other
TOTAL
EXPENDITURE ON:
Raising funds
Charitable activities
Governance costs
TOTAL RESOURCES EXPENDED
NET (EXPENDITURE)/INCOME
TRANSFERS BETWEEN FUNDS
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
FUNDS BROUGHT FORWARD
FUNDS CARRIED FORWARD		 Unrestricted
Funds
General
£
-
94,294
195
94,489
-
103,039
1,759
104,798
(10,309)
-
(10,309)
158,186
147,877		 Restricted Fund
Playground
Fund
£
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2020
£
-
94,294
195
94,489
-
103,039
1,759
104,798
(10,309)
-
(10,309)
158,186
147,877		 Total
2019
£
447
143,635
86
144,168
285
104,703
900
105,888
38,280
-
38,280
119,906
158,186

Page 13

MUCH HADHAM PRE-SCHOOL REPORT OF THE INDEPENDENT EXAMINER TO THE TRUSTEES OF MUCH HADHAM PRE-SCHOOL

I report to the charity trustees on my examination of the financial statements of the Charity for the year ended 31 August 2021 as set out on pages 7 to 13.

This report is made solely to the charity’s trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

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 (‘the Act’).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (‘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 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit go beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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.

Jan Rickler FCA Chartered Accountant Alwyns LLP Crown House 151 High Road Loughton Essex IG10 4LG Dated: 31 May 2022

Page 14