2022-07-31-accounts - The Old Dalby Pre-School Playgroup

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OLD DALBY PRESCHOOL PLAYGROUP

REPORT AND ACCOUNTS FOR THE PERIOD ENDED 31[ST] JULY 2022

Principal Address: Main Road Old Dalby Melton Mowbray LE14 3LR

Independent Examiner: Natalie Hanlon Woods House Hunts Road, Duxford CB22 7ZE

A charitable organisation registered in England and Wales Registered Charity no: 503727

OFSTED Unique Reference no: EY414047

Charity’s Trustees and senior management during the period of the accounts and to date:

Trustees

Chairperson: Current – Linzi Drury (appointed 10/11/2021) Previous – Jessica Hutchings (appointed 26/05/21 resigned 10/11/2021) Previous – Tracy Hamilton (appointed 30/11/20 resigned 26/05/21) Previous – Anna Foster (appointed 27/02/20 resigned 30/11/20) Treasurer: Current – Phil Watson (appointed 24/3/22) Previous – Victoria Lee (appointed 06/02/19 resigned 24/3/22) Secretary: Current – Lauren Norton (appointed 26/05/21) Previous – Charlotte Cahill (appointed 13/11/19 resigned 26/05/21) Current Trustees: Shane Cooke (appointed 26/05/21) Philip Watson (appointed 24/03/2022) Carly Steel (appointed 9/03/2022) Victoria Lee (appointed 22/9/2015) Former Trustees: Aimee Wroblewski (resigned 12/04/21) Tracy Hamilton (resigned 26/05/21) Karl Loftus (resigned 30/10/20) Jackie Swain (resigned 12/08/20)

Senior management

Preschool Manager: Leonie Miller-Pounder Preschool Deputy Manager: Current – Kimberley Cooke Maternity leave cover from 13[th] June 2022 - Laura Penman Previous – Mr Neil Chapman

Advisors

Bank: HSBC Bank

Charity’s structure

The Old Dalby Pre-school Playgroup is formed as an unincorporated charity, which adopted the Preschool Learning Alliance Model Pre-School Constitution 2011, in 2015. Trustees are appointed at an

AGM after people with an interest in the charity (eg. parents of children at the setting) complete a self-nomination form and join the committee.

Charitable objectives and main activities

The aims of the Preschool are to enhance the development and education of children primarily 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, education and care facilities, family learning and extended hours groups, 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 and inclusion for all children.
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; and
Instigating and adhering to and furthering the aims and objectives of The Early Years Alliance, Department for Education, Ofsted and Leicestershire County Council.

The Activities of the Preschool are carried out in a purpose-built building, which was financed from a grant received in 2010. This building is used by the Preschool to meet its main activities and charitable objectives which are:

The Preschool aims to provide a school time childcare facility for families in the village and surrounding areas with the aim of preparing the children to progress to primary school with a smooth transition.
The Preschool aims to make enough money to allow it to pay competitive wages and employ committed, highly qualified staff and allow it to buy new equipment to introduce new experiences to the children.
The Preschool aims to hold at least a Good grade from Ofsted to allow it to be a very attractive childcare provider and refill its child places each year.
The Preschool aims to be at the forefront of childcare innovation and therefore keep developing and improving in order to provide a high-quality childcare setting.

Annual review of achievements and performance during the 12 months to 31 July 2022

Summary

During the 2021 – 2022 financial year, the Preschool continued to provide childcare to children aged 2 to 4 years old for the core hours of 9.00am to 3.30pm during term time to an average of 28 children per week. Numbers remained consistent and have improved over the year, up to 30 in the summer term. The summer club offered a successful themed week in August 2022 for 23 children between the ages of 2 and 8 years old.

Although Covid-19 was still prevalent and meant that the preschool was still not able to invite parents back into the setting, overall there has been a return to normality. The preschool has been able to develop its activities on offer by arranging outdoor sport sessions delivered by external coaches. The children have enjoyed developing their basketball, rugby and football skills fortnightly from January 2022. As restrictions continued to be removed, indoor yoga sessions were delivered by a children’s yoga teacher every Monday from April 2022. This is something that the children have engaged well with and thoroughly enjoy.

Staffing

Two new staff have been recruited and have settled in well, thus the preschool currently has no requirement to recruit any further staff. One member of staff was recruited on a fixed term contract to provide support for children with additional needs as she has relevant experience and OT qualifications. This contract has been extended to cover maternity leave until March 2023. The second member of staff has been recruited as an apprentice on a Level 3 Early Years Educator qualification due to be completed by June 2023.The deputy manager for the setting went on maternity leave from June 2022. An experienced member of current staff has stepped into the role of deputy to cover this period of maternity leave.

A bonus was paid to the staff in December 2021 as acknowledgment of their continued hard work and dedication. Wages were also increased from April 2022. The Trustees continued to offer, and pay into, the pension scheme for the staff thereby continuing to fulfil the auto-enrolment requirements.

The Preschool Manager continued to work alongside the Treasurer and Chair of Trustees to provide the liaison between staff and committee and provided guidance on the running of the setting; attending all Committee meetings and supplying updates on children numbers and new policies. The Trustees also carried out regular supervisions with the manager.

The Committee, with the support of the Preschool Manager agreed to retain a specialist Early Years Bookkeeper for pay roll, and year end preparation of accounts and independent examination which has provided support to the long standing former Treasurer and the incoming replacement.

Trustees

The Preschool’s policy and procedure document has been reviewed and updated by the Preschool manager, with input from the Trustees and parents. This has occurred on an annual basis, except for safeguarding policies and procedures which are reviewed every six months. Trustees continued to access training on Educare to ensure they were up to date on all safeguarding, prevent duty and best practice policies and procedures.

Marketing and General

We continued to market the Preschool in the local area; the Facebook page continued to be updated to allow us to communicate with the parents and potential users of the Preschool. Monthly adverts go into the local parish magazine. The website continues to be updated by the Preschool Manager to showcase the best of the Preschool and will assist to engage with parents and the community.

Property

The Preschool has a leasehold interest in the land on which it operates, which is owned by Old Dalby Primary School. Negotiations for an extension to the lease (which ended on 6th July 2020) was instigated by the Trustees in 2017 have been ongoing ever since. The Trustees received a draft lease from the school’s solicitors in May 2021, the Trustees submitted feedback after extensive pro bono advice in November 2021 and then sent an amended lease on 18th May 2022.

Advice on the lease has been secured on a pro bono basis by the former Treasurer. Basic terms have been agreed to provide security to the Preschool however documentation has not been formally signed as at the date of the writing of this Report in January 2023.

Improvements and Initiatives

The Preschool implemented the new EYFS from September 2021 by training, new procedures and policy updates. The setting continued to provide School Readiness Fridays for the children headed to primary school in September 2022. This year allowed for more face to face interactions between children and their new teachers, including visits to the school, which had been prevented last year due to covid-19.

Staff secured SEN funding for a child which was spent on extra resources and one to one time with a staff member. Staff continued to use the Tapestry online journal for each child to share information with parents about children’s learning and development.

The Preschool Manager continues to make good progress towards her Level 3 Forest School Leader course. Staff also continued promoting children’s health through the Leicestershire County Council scheme for tooth brushing in the setting.

Fundraising

This year £799.49 was raised through trustee personal fundraising, Amazon Smile donations and the annual Christmas Fayre.

Public Benefit

The Trustees are aware of the guidance issued by the Charity Commission concerning public benefit and are satisfied that the information given in this report demonstrates that the requirements to identify public benefit have been met.

Financial review

Overall, the Preschool is in a healthy position at the end of the 21/22 financial year. For the period of accounts, the total income was £79,727 with expenses of £81,096 resulting in a loss over the course of the year of £1,368. Although the setting has made a nominal loss across the year, given the investment made in facilities, substantial increases in utilities costs and the support given to staff through training, this is viewed by the committee as a positive result. The Preschool continues to review its cost base to ensure it can continue to cover its outgoings and will be looking to increase its fundraising efforts, including applying for local and national grants. The preschool was in receipt of a

restricted grant of £1,000 from the Old Dalby Day Charity, to contribute towards improvements to the garden area. These funds were spent to cover part of phase 1 of this work (completed in Oct 21) and additional improvements have since taken place.

Wages, and associated costs of employment including continued professional development, are the main expenditure of the Preschool, along with our rent obligations and utilities bills. The Preschool aims to attract and retain the best staff to make it the best environment possible. Given the financial challenges arising from the current economic climate, the committee took steps to support staff by and will shortly review all salaries to ensure they are consistent with the latest national guidance and remain competitive compared to other local settings.

On 21[st] July 2022 the Supreme Court made a ruling on a case relating to the calculation of holiday pay for part-year workers, and confirmed that all employees are entitled to 5.6 weeks of annual leave per year. As a result, the staff contracts were updated to reflect this contractual entitlement for the upcoming financial year, and a calculation was made in respect of the underpayment of holiday pay over the preceding two year. This liability of £2,203 was paid during the 2022-2023 financial year and is shown on the statement of liabilities.

Given the implementation of new minimum wages and the rate of inflation seen since the last report, fees were increased by £0.10/hour from 1[st] February 2022 to the following rates:

Children aged 3 and above: £5.10/hour Children aged 2: £5.20/hour Lunch club: £2.60

Total unrestricted reserves held by the Preschool amount to £49,042, with no restricted reserves. The Trustees reviewed the policy on reserves during the Covid-19 crisis, and have continued to monitor this as part of the financial review as well as the anticipated threats to income and general finances. The Trustees aim to hold sufficient financial reserves to sustain the Preschool if its income falls below the expected levels, or in the event of continued unprecedented rises in costs. The intention would be to continue functioning as a Preschool if at all possible and cover the payment of staff redundancies in the unlikely event that the Preschool had to close. The amount held in reserve is reviewed annually at the beginning of the academic year to ensure that sufficient funds are being maintained. The reserve balance is reviewed every month to ensure it is within the required range and actions will be taken by the Trustees if this is not the case.

As the current reserves remain above the Reserve Policy recommended amount, we have been looking at responsible ways to deploy these funds by investing in aspects of the Preschool, after consultation with parents and other stakeholders. In the past year funds have been used to further develop the garden space, and plans have been made to purchase items required to run forest school activities once the staff have completed the necessary training. In addition, a proposal to maintain fees at the current levels for the year ahead will be discussed at the upcoming AGM.

Risk Management

The Trustees are aware of the main risks to which the charity is exposed, with the current global economic climate, rising salary costs and the potential for a re-emergence of Covid-19. They are satisfied that the current reserves are sufficient to enable the charity to continue in business for the foreseeable future.

The Trustees declare that they have approved the Trustees’ report above.

Signed on behalf of the charity’s trustees

Full name: …Phillip Watson…. Date: …4[th] May 2023…. Position held: …Treasurer….

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF OLD DALBY PRESCHOOL PLAYGROUP

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 July 2022 which are set out on pages 9 to 10.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 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 Act.

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:

accounting records were not kept in respect of the charity as required by section 130 of the Act; or
the accounts do not accord with those records.

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 accounts to be reached.

Signed

Natalie Hanlon Cambridge Bookkeeping Services Woods House Hunts Road Duxford CB22 4RE

Dated: 27[th] April 2023

THE OLD DALBY PRE-SCHOOL PLAYGROUP REGISTERED CHARITY NO 503727 RECIEPTS AND PAYMENTS FOR THE YEAR TO 31 JULY 2022

Unrestricted Funds Restricted Funds Period to 31st July 2022 £ Income Fee Income £27,732.65 £27,732.65 LCC FEEE £47,432.84 £47,432.84 Fundraising Activities £799.43 £799.43 Donations £1.25 £1.25 Grants £0.00 £1,000.00 £1,000.00 Apprenticeship Grant £1,500.00 £1,500.00 SEND Funding £629.10 £629.10 HMRC - SMP Rebate £0.00 £0.00 HMRC - COVID-19 Grants £621.47 £621.47 Interest Income £10.65 £10.65 Other Income £0.00 £0.00 Total Income £78,727.39 £1,000.00 £79,727.39 Less Operating Expenses Bank Fees £43.27 £43.27 Children's Gifts & Activities £1,011.15 £1,011.15 CPD Costs £422.54 £422.54 DBS & Staff Welfare Costs £500.05 £500.05 Equipment £4,466.70 £4,466.70 Food £833.14 £833.14 Fundraising Expenses £48.31 £48.31 Insurance £2,663.39 £2,663.39 Maintenance £3,054.29 £1,000.00 £4,054.29 Marketing £64.83 £64.83 Payroll & Accounting Fees £932.20 £932.20 Pensions Expense £1,820.31 £1,820.31 Phone and Broadband £372.45 £372.45 Professional Fees £70.00 £70.00 Recruitment £181.73 £181.73 Rent £2,097.00 £2,097.00 Stationery & Postage £121.49 £121.49 SEND Resources £435.13 £435.13 Uniform £291.05 £291.05 Utilities £3,052.97 £3,052.97 Wages Expense £57,476.80 £57,476.80 Website £136.80 £136.80 Total Operating Expenses £80,095.60 £1,000.00 £81,095.60 Surplus/Deficit -£1,368.21 £0.00 -£1,368.21 Cash balances b/f £50,409.86 £50,409.86 Balances c/f £49,041.65 £49,041.65	Period to 31st July 2021 £ £18,469.85 £47,418.46 £439.74 £0.00 £0.00 £0.00 £279.60 £1,153.15 £1,110.08 £2.74 £0.00
	£68,873.62
	£0.00 £123.90 £2,346.49 £251.42 £3,720.54 £728.50 £0.00 £2,650.69 £2,426.59 £144.00 £762.80 £1,474.49 £850.11 £230.00 £0.00 £2,097.00 £0.00 £67.93 £657.58 £1,267.10 £48,674.70 £55.20
	£68,529.04

	£344.58
	£50,065.28
	£50,409.86

THE OLD DALBY PRE-SCHOOL PLAYGROUP REGISTERED CHARITY NO 503727 STATEMENT OF ASSETS AND LIABILITIES AS AT 31 JULY 2022

Notes RESERVES Balance b/f Excess income over expenditure Total reserves CASH FUNDS Current Account Fundraising Account Total current assets LIABILITIES PAYE/NI Holiday Pay Accrual following Harpur vs Brazel Ruling 4 FUNDS OF THE CHARITY Restricted funds Unrestricted funds Total charity funds	31st July 2022 £ 50,409.86 (1,368.21) 49,041.65 4,003.16 45,038.49 49,041.65 - 2,203.09 2,203.09 - 49,041.65 49,041.65	31st July 2021 £ 50,065.28 344.58
		50,409.86
		10,382.02 40,027.84
		50,409.86
		187.34 -
		187.34
		- 50,409.86
		50,409.86

Notes to the accounts.

1 ACCOUNTING POLICIES

Basis of Accounting

The financial statements have been prepared on the receipts and payments basis.

Income

All income is included at the time of receipt.

Expenses

All expenditure is accounted for at the time of payment.

2 EQUIPMENT

All equipment purchased by the charity is included under these headings as an expense. No items have been capitalised.

3 LIABILITIES

A total of £2,203.09 has been calculated as underpaid holiday pay following the Harpur vs Brazel ruling. This will be paid to staff in the next financial year.