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2020-08-31-accounts

Charity registration number: 702282

Small Saints Pre-School

Annual Report and Financial Statements

for the Year Ended 31 August 2020

Small Saints Pre-School

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 3
Statement of Trustees' Responsibilities 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 15

Small Saints Pre-School

Reference and Administrative Details
Committee members (trustees) Mrs J Cornwell, Chair
Mrs J Houghton, Treasurer
Ms C Shaw, Acting Secretary
Ms R Stevenson
Ms T Barwell (appointed 14 January 2020)
Ms K Moore (appointed 21 February 2020)
Custodian trustees Lady J Taylor, Chairperson
Mrs J Matthewson
Ms G Graper
Principal Office The Chase
High Street
Holbeach
Spalding
Lincolnshire
PE12 7ED
Charity Registration Number 702282
Bankers National Westminster Bank Plc
1 Market Street
Wisbech
PE13 1DT
Independent Examiner Bulley Davey Limited
Chartered Certified Accountants
33 Boston Road
Holbeach
Spalding
Lincolnshire
PE12 7LR

Page 1

Small Saints Pre-School

Trustees' Report

The trustees present the annual report together with the financial statements of the charity for the year ended 31 August 2020.

Objectives and activities

Objects and aims

The aim of the charity shall be to advance the education of children below compulsory school age by:

The committee members are satisifed with the progress of the charity and are confident that it will continue to meet its objectives.

Public benefit

The activities undertaken by the charity to further public benefit are set out in the key points noted above for the objects and aims of the charity.

The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

During the year under review the charity has met its objectives by providing the education requirements to children below compulsory school age.

The intake of children is at full capacity with a waiting list. The school provides funded places for disadvantaged two year olds in the area. The last Ofsted inspection was carried out in February 2018 and the school achieved a good report. Introduction of 30 hours for 3 to 4 year olds has reduced pupil numbers as children are doing more hours to utilise the initiative.

Financial review

During the year the charity raised £392,692 (2019 - £382,325) to carry out the objectives mentioned earlier. Of this amount £350,170 (2019 - £357,684) was used in the current year. As a result the reserves now stand at £570,267 (2019 - £527,745) of which £509,637 (2019 - £467,115) relates to unrestricted funds and £60,630 (2019 - £60,630) relates to restricted funds.

Policy on reserves

The finance committee conducts an annual review of the level of unrestricted reserves not committed or invested in tangible fixed assets ("the free reserves") in the general fund, by considering the risks associated with the various income streams, expenditure plans and balance sheet items.

This enables an estimate to be made of the level of reserves that are sufficient:

The level is estimated at 6 months of the general expected budget. The reserves currently held in general funds are £157,696 which meets the objective.

Under the constitution, the charity has the power to make any investment which the committee see fit provided appropriate advice is taken from a professionally qualified person under the Financial Services Act 1986. However the committee choose to take a prudent approach and invest temporarily surplus funds in bank deposits.

Principal funding sources

The charity is funded by fees paid by the parents of the children on the roll, grants from Lincolnshire County Council and fund raising events.

Page 2

Small Saints Pre-School

Trustees' Report

Structure, governance and management

Nature of governing document

Small Saints Pre-School is an organisation constituted as a charity under a trust deed adopted on 8 June 1988 as amended on 9 November 1989 and 24 May 1995 and 22 May 2015.

Recruitment and appointment of trustees

Committee members are elected at the AGM.

The constitution states that the committee shall consist of 3 officers (Chair, Secretary and Treasurer) and that there must be not less than 2 nor more than 9 elected members.

The custodian trustees who have served during the year and since the year end have been set out on page 1. These trustees hold the lease of which the charity runs from.

Organisational structure

All aspects of the charity are managed by the committee members as set out on page 1.

A manager is appointed by the committee members to manage the day to day operations of the charity.

The committee members have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

Financial instruments

Objectives and policies

The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mrs J Cornwell Chair

Page 3

Small Saints Pre-School

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.

Approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mrs J Cornwell Chair

Page 4

Small Saints Pre-School

Independent Examiner's Report to the trustees of Small Saints Pre-School

I report on the accounts of the charity for the year ended 31 August 2020 which are set out on pages 6 to 15.

Respective responsibilities of trustees and examiner

The trustees are responsible for the preparation of the accounts. The 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. The charity's gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of . 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 next statement.

Independent examiner's statement

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

have not been met; or

...................................... Christopher McKenna ACA

Bulley Davey Limited Chartered Certified Accountants 33 Boston Road Holbeach Spalding Lincolnshire PE12 7LR

Date:.............................

Page 5

Small Saints Pre-School

Statement of Financial Activities for the Year Ended 31 August 2020

Note
Income and Endowments from:
Donations
2
Charitable activities
3
Other income
4
Investment income
5
Total Income
Expenditure on:
Fundraising and publicity
6
Management and administration
7
Governance costs
8
Staff costs
11
Total Expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
17
Unrestricted
£
1,193
390,594
351
554
392,692
-
66,053
3,264
280,853
350,170
42,522
467,115
509,637
Restricted
£
-
-
-
-
-
-
-
-
-
-
-
60,630
60,630
Total
2020
£
1,193
390,594
351
554
392,692
-
66,053
3,264
280,853
350,170
42,522
527,745
570,267
Total
2019
£
-
379,518
2,071
736
382,325
237
76,159
2,640
278,648
357,684
24,641
503,104
527,745

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 17.

The notes on pages 8 to 15 form an integral part of these financial statements. Page 6

Small Saints Pre-School

(Registration number: 702282) Balance Sheet as at 31 August 2020

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: Amounts falling due within one year
15
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
17
2020
£
229,474
4,800
340,967
345,767
(4,974)
340,793
570,267
60,630
509,637
570,267
2019
£
231,217
5,079
300,204
305,283
(8,755)
296,528
527,745
60,630
467,115
527,745

The financial statements on pages 6 to 15 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... .........................................
Mrs J Cornwell Ms C Shaw
Chair Trustee

The notes on pages 8 to 15 form an integral part of these financial statements. Page 7

Small Saints Pre-School

Notes to the Financial Statements for the Year Ended 31 August 2020

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

Small Saints Pre-School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

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

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Page 8

Small Saints Pre-School

Notes to the Financial Statements for the Year Ended 31 August 2020

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £100.00 or more are initially recorded at cost.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Furniture, fixtures & fittings 15% reducing balance Plant & equipment 15% reducing balance Computer equipment 25% reducing balance

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of is established when there is objective evidence that the will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 9

Small Saints Pre-School

Notes to the Financial Statements for the Year Ended 31 August 2020

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 10

Small Saints Pre-School

Notes to the Financial Statements for the Year Ended 31 August 2020

2 Income from donations

Donations Unrestricted
General
£
1,193
1,193
Total
2020
£
1,193
1,193
Total
2019
£
-
-

The total income from donations during the year was £1,193 (2019 - £Nil) of which £1,193 (2019 - £Nil) was unrestricted.

3 Income from charitable activities

Pre-school fee income
Kid's club - fee income
Pupil premium
Inclusion funding
Government grants
Grants
Sales of shirts/name tape
Milk rebates
Unrestricted
General
£
334,664
37,225
4,704
-
11,464
-
1,278
1,259
390,594
Total
2020
£
334,664
37,225
4,704
-
11,464
-
1,278
1,259
390,594
Total
2019
£
316,251
48,195
5,284
5,814
-
1,000
1,672
1,302
379,518

The total income from charitable activites during the year was £390,594 (2019 - £379,518) of which £390,594 (2019 - £379,518) was unrestricted.

4 Income from other activities

Fundraising events
Outings
Unrestricted
General
£
351
-
351
Total
2020
£
351
-
351
Total
2019
£
681
1,390
2,071

The total income from other activities during the year was £351 (2019 - £2,071) of which £351 (2019 - £2,071) was unrestricted.

5 Investment income

Page 11

Small Saints Pre-School

Notes to the Financial Statements for the Year Ended 31 August 2020

Interest receivable and similar income;
Interest receivable on bank deposits
Unrestricted
funds
General
£
554
Total
2020
£
554
Total
2019
£
736

The total investment income during the year was £554 (2019 - £736) of which £554 (2019 - £736) was unrestricted.

6 Expenditure on raising funds

a) Costs of generating funds

Fundraising expenses Total
2020
£
-
Total
2019
£
237

The total expenditure on raising funds during the year was £Nil (2019 - £237) of which £Nil (2019 - £237) was unrestricted.

7 Expenditure on management and administration

Light, heat and power
Outing expenses
Refreshments and cleaning expenses
Rent and rates
Milk
Building repairs
Grass cutting
Garden maintenance
Consumables
Telephone
Equipment repairs
Insurance
Purchases for re-sale
Running costs and miscellaneous expenses
Depreciation
Bank charges
Legal and professional fees
Lease charges
Courses and training
Printing, postage and stationery
Learning aids
Unrestricted
General
£
6,556
-
4,933
11,464
1,056
2,694
2,175
-
6,790
1,362
531
5,318
1,523
591
6,008
507
1,788
9,141
1,987
1,629
-
66,053
Total
2020
£
6,556
-
4,933
11,464
1,056
2,694
2,175
-
6,790
1,362
531
5,318
1,523
591
6,008
507
1,788
9,141
1,987
1,629
-
66,053
Total
2019
£
5,927
1,310
5,411
11,797
1,553
1,307
1,845
1,975
9,148
1,163
1,661
5,241
2,170
493
6,477
601
1,690
9,140
2,349
3,371
1,530
76,159

Page 12

Small Saints Pre-School

Notes to the Financial Statements for the Year Ended 31 August 2020

The total management and administration expenditure during the year was £66,053 (2019 - £76,159) of which £66,053 (2019 - £76,159) was unrestricted.

8 Analysis of governance and support costs

Governance costs

Unrestricted

Accountancy fees
Bookkeeping fees
General
£
834
2,430
3,264
Total
2020
£
834
2,430
3,264
Total
2019
£
870
1,770
2,640

The total governance costs during the year were £3,264 (2019 - £2,640) of which £3,264 (2019 - £2,640) was unrestricted.

9 Net incoming/outgoing resources

Net incoming resources for the year include:

Depreciation

2020
£
6,008
2019
£
6,477

10 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

11 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Salaries
Pension costs
2020
£
274,886
5,967
280,853
2019
£
273,681
4,967
278,648

The total staff costs during the year were £280,853 (2019 - £278,648) of which £280,853 (2019 - £278,648) was unrestricted.

No employee received emoluments of more than £60,000 during the year

12 Taxation

The charity is a registered charity and is therefore exempt from taxation.

Page 13

Small Saints Pre-School

Notes to the Financial Statements for the Year Ended 31 August 2020

13 Tangible fixed assets

Cost
At 1 September 2019
Additions
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019
Land &
buildings
£
194,903
3,785
198,688
-
-
-
198,688
194,903
Fixtures &
fittings
£
63,797
-
63,797
44,685
3,066
47,751
16,046
19,112
Computer
equipment
£
10,116
480
10,596
7,717
720
8,437
2,159
2,399
Plant &
equipment
£
38,896
-
38,896
24,093
2,222
26,315
12,581
14,803
Total
£
307,712
4,265
311,977
76,495
6,008
82,503
229,474
231,217

14 Debtors

Trade debtors
Prepayments
Other debtors
2020
£
92
1,954
2,754
4,800
2019
£
282
2,043
2,754
5,079

15 Creditors: amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals
2020
£
325
3,520
307
822
4,974
2019
£
2,618
3,786
1,541
810
8,755

16 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £5,967 (2019 - £4,967).

Page 14

Small Saints Pre-School

Notes to the Financial Statements for the Year Ended 31 August 2020

17 Funds

17 Funds
Unrestricted
General
Restricted funds
Property improvement fund
Total funds
Balance at 1
September
2019
£
467,115
60,630
527,745
Incoming
resources
£
392,692
-
392,692
Resources
expended
£
(350,170)
-
(350,170)
Balance at 31
August 2020
£
509,637
60,630
570,267

Unrestricted funds

Property improvement fund

The purpose of this fund is for property improvements to the charity's leased building.

Unrestricted
General
Restricted funds
Property improvement fund
Total funds
18 Analysis of net assets between funds
Tangible fixed assets
Current assets
Current liabilities
Total net assets
Balance at 1
September
2018
£
442,474
60,630
503,104
Incoming
resources
£
382,325
-
382,325
Unrestricted
funds
General
£
229,474
285,137
(4,974)
509,637
Resources
expended
£
(357,684)
-
(357,684)
Restricted
funds
£
-
60,630
-
60,630
Balance at 31
August 2019
£
467,115
60,630
527,745
Total funds at
31 August
2020
£
229,474
345,767
(4,974)
570,267

19 Related party transactions

During the year the charity made the following related party transactions:

Mrs J Houghton

During the year Mrs J Houghton provided book-keeping services for Small Saints Pre-School totalling £2,430 (2019 - £1,770). At the balance sheet date the amount due to/from Mrs J Houghton was £Nil (2019 - £Nil).

Page 15