Chair’s report 2021
Following a tough year with COVID-19, the Pre-School weathered the storm admirably and exited the tough period intact with all staff ultimately returning to back to work as normal. Whilst this is positive and demonstrates all the staff members commitment and professionalism, it doesn’t come without cost – and that is that the cash reserve that had been hard won over previous years fundraising activities had been significantly depleted.
Due to lockdown restrictions there was one stretch whereby the Pre-School was forced to close its doors which meant operating with a partial staff furlough (3 furloughed, 3 drawing a wage).
During this tough period, the Pre-School demonstrated remarkable resilience in being able to continue to deliver learning to its children. This was accomplished via the children’s key workers supplying relevant tasks and content with the Tapestry tool as well as Jill delivering You Tube or Facebook sessions to the entire Pre-School twice a week.
It was also during the pandemic in August 2020 that the Pre-School refurbished their kitchen facility to provide a more sanitary environment in-line with guidelines for operating in what is now a COVID-19 world.
Even with these challenges and changes to the way things had to work, Little Oaks continued to be the successful Pre-School that it has always been and provided a safe and fun environment for the children to develop key skills with fun learning games and activities.
Some other changes that COVID-19 has been a catalyst for:
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From October 2020 onwards the general delivery of Pre-School services has adapted to a more outside delivery of learning.
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In general, a greatly enhanced cleaning regime has been adopted which has resulted in higher operating costs for the Pre-School, yet a price increase has been strongly resisted.
Jill Brace (the Manager) and her team of staff members all contribute to a learning environment which allows the children to realise their own personal learning goals by really getting to know and understand each child individually. This is reflected in the way that the staff tailor activities specifically to the interests of the children whilst staying within guidelines of knowing what it is that the children will need in terms of both education fundamentals and life skills when they enter full time education at their chosen primary school.
The quality of relationships that all staff forge with their pupils can be seen very clearly when the various fundraising events occur throughout the year and the children, parents and staff are all together, there is a strong family atmosphere, and it is a joy to watch.
The as a pre-school operates non-profit making organisation that is also a registered charity. Therefore, funding for maintaining, developing, improving and running the Pre-School on a day-to-day basis comes from 3 main sources:
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Government funding for statutory hours of attendance.
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Extra attendance hours that are non-government funded, therefore paid by parents/guardians.
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Fundraising events organised by the committee. This typically incudes a May Fayre, a Christmas market event and several other smaller fundraising
initiatives throughout the pre-school year and holidays.
This fundraising enables the committee to remove the financial burden of running such an establishment as much as possible from the staff to allow them to focus all of their attention and energy on the children and their development.
The committee members meet regularly to liaise with and plan how to support Jill and her staff members. The committee are continually looking to replace leaving parents and also asking for more members to help ensure that the Pre-School continues to operate as best it can.
The Pre-School is in a generally good state of repair, with a number of new facilities having been added over the last few years and there are no major planned expenditures that can be foreseen outside of the items below.
This coming year, the aspirational goals of the Committee are to:
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Organise and finalise the renewal of the lease for the grounds on which Little Oaks resides.
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Refurbish the toilet facilities within the building.
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Replace or recondition the access ramp to the building.
Towards the latter part of the school year, Little Oaks unfortunately had to close down between late April and July due to complications with the change in OFSTED status of the Pre-School from a “Limited Company” to a “Community group with a committee” run Pre-School.
Lastly in July 2021 Little Oaks managed to host a sports day which was the first back to normal event that they
were able to put on. All the staff, parents and children really enjoyed this event, and it was a great success as well as a nice reminder of the fact that things were hopefully edging back towards normal.
Nicola Younger Little Oaks Chair
Balance Sheet I otes SOFA Littl¢ Oaks Prc-kho)l (Frimlth.) Bg]AJv Sheet 41 At 31 Julv 201 PTior Y¢#r FLThIs Fwids Fivd A$3¢15 lan8ibl¢ No 11 Lurreni Astsd D¢biors and prep%'nKnti C8sh 81 bank" •nd in hond N8 655 ?5.101 30.859 5",.8L l.iabilitieg Credir5.. amounts fallin8 within I year No9 1.571 1.155 Nti or li&kn"liiies exclaIn$ pertion al or liat41tty 56.727 Defined knefit pension imel or liabililv TO net 80.1 The fund¥ of the chIlY ETra0Kn1 fund$ Restricltd funds Unfemricied funds Rcv&lualioD Teser%'e Pcnsi¢m r¢Kri'c Totsi ¢hrity' funds 107L*9 .19) 107.L Approtred ty..
Little Oaks Pre-School (Frimley)
Notes to the Accounts
Year to 31 July 2021
1. Basis of preparation
1.1 Basis of accounting
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.
The accounts have been prepared in accordance with the Statement of Recommended Practice: 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) issued on 16 July 2014
and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102)
and with the Charities Act 2011
The charity constitutes a public benefit entity as defined by FRS 102
1.2 Going concern
The trustees are of the view that funding from Surrey County Council and fees charged to parents will be sufficient to cover normal operating costs and on this basis the charity is a going concern.
1.3 Changes to accounting estimates
No changes to accounting estimates have occured in the reporting period.
2. Accounting policies
2.1 Recognition of income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met and it is probable that the income will be received and the amount can be measured reliably. Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
There has been no offsetting of assets and liabilities or income and expenses unless required or permitted by the FRS 102 SORP or FRS 102.
The charity has received government grants in the reporting period - Surrey County Council funding for children attending the Pre-School.
Income from interest, royalties and dividends: This is included in the accounts when receipt is probable and the amount receivable can be measured reliably.
2.2 Expenditure and liabilities
Liability recognition: Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty
Redundancy cost: The charity made no redundancy payments during the reporting period.
Creditors: The charity has creditors which are measured at settlement amounts less any trade discounts
Provisions for liabilities: A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date
2.3 Assets
Tangible fixed assets for use by charity: These are capitalised if they can be used for more than one year, and cost at least £500.
They are valued at cost. The depreciation rates and methods used are disclosed in note 11.
Debtors: Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.
3. Trustee expenses and remuneration.
No trustee expenses have been incurred.
None of the trustees have been paid any remuneration or received any other benefits from an employment with the charity or a related entity.
4. Related party transactions
There are no related party transactions.
| 5. Disclosure of audit, independent examination and other financial service fees | 5. Disclosure of audit, independent examination and other financial service fees | |
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Independent examination fees | 150 | 150 |
| 6. Grants Receivable | ||
| 2021 | 2020 | |
| £ | £ | |
| Coronavirus Job Retention Scheme | 3,181 | 7,278 |
| Surrey County Council | - | 440 |
| Covid-19 sick pay refunded | 192 | - |
| 3,373 | 7,718 |
An amount of £3181 was received under the Coronavirus Job Retention Scheme which was used to pay furlough salaries. Statutory sick pay of £191.70 was refunded by the government under special Covid-19 rules 2020: Surrey County Council awarded an Inclusion Grant of £440 which was used to support a child with special needs.
7. Paid employees
Staff costs are comprised of
| Salaries (net) and staff welfare Social security costs Pension contributions |
2021 2020 £ £ 64,401 63,429 6,133 5,509 1,453 168 71,987 69,106 |
|---|---|
There are no employees who received employee benefits of more than £60,000 During the reporting period there were an average of 6 employees
8. Debtors
| Trade debtors Prepayments 9. Creditors: amounts falling due within 1 year Trade creditors |
2021 2020 £ £ 3,974 - 1,784 665 5,758 665 2021 2020 £ £ 479 578 |
|---|---|
| Accruals and deferred income Taxation and social security |
1,092 577 - - 1,571 1,155 |
|---|---|
10. Movement of Funds
| Balance as at 1st August 2020 Net incoming/(outgoing) resources Balance as at 31st July 2021 |
Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 107,629 - - 107,629 27,939 - 500 - 27,439 - 79,690 500 - 80,190 |
|---|---|
11. Tangible fixed assets
11.1 Cost
| Building Area | Play Area | Total | |
|---|---|---|---|
| At beginning of year | 56,066 | 6,095 | 62,161 |
| Additions | - | - | - |
| Disposals | - | - | - |
| At end of year | 56,066 | 6,095 | 62,161 |
| 11.2 Depreciation | |||
| Building Area | Play Area | Total | |
| At beginning of year | 10,985 | 274 | 11,259 |
| Disposals | - | - | - |
| Depreciation | - | - | - |
| Impairment | - | - | - |
| At end of year | 10,985 | 274 | 11,259 |
| 11.3 Net Book Value | |||
| At beginning of year | 45,081 | 5,821 | 50,902 |
| At end of year | 45,081 | 5,821 | 50,902 |
Little Oaks Pre-School (Frimley)
Statement of Financial Activities
Year to 31 July 2021
| Income and endowments from Donations Gifts and donations Charitable activities Pre-School fees including Surrey CC funding Grants - other Note 6 Lunch Club fees Other trading activities Fundraising Other income Late payment fees Sundry income Gross interest Expenditure on Raising funds Fundraising Charitable activities Salaries Note 7 Premises costs Training Materials, equipment, uniform Insurance Professional fees Administrative costs Other Bad debts Bank charges and sundry costs Net (expenditure)/income Transfers between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 4,113 500 0 4,613 49,423 0 0 49,423 3,373 0 0 3,373 348 0 0 348 1,409 0 0 1,409 20 0 0 20 60 60 0 0 0 0 58,746 500 0 59,246 97 0 0 97 71,987 0 0 71,987 9,132 0 0 9,132 710 0 0 710 1,277 0 0 1,277 0 0 0 0 2,490 0 0 2,490 895 0 0 895 2 0 0 2 95 0 0 95 86,685 0 0 86,685 -27,939 500 0 -27,439 0 0 0 0 -27,939 500 0 -27,439 107,629 0 0 107,629 79,690 500 0 80,190 |
Prior Year Funds £ 0 67,507 7,718 770 3,848 45 588 758 81,234 530 69,106 7,319 0 936 1,140 2,684 487 0 108 82,310 -1,076 0 -1,076 108,705 107,629 |
|---|---|---|
Restricted Funds: £150 and £350 donations re bathroom
Independent examiner's report on the accounts
Section A Independent Examiner’s Report
Report to the trustees/ Charity Name Little Oaks Pre-School members of
On accounts for the year 31[st] July 2021 Charity no 802781 ended (if any) Set out on pages 1-5 (remember to include the page numbers of additional sheets)
I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31 / 07 / 2021 .
- Responsibilities and As the charity trustees of the Trust, you are responsible for the preparation basis of report of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent I have completed my examination. I confirm that no material matters have examiner's statement come to my attention (other than that disclosed below *) in connection with the examination which gives me cause to believe that in, any material respect:
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accounting records were not kept in accordance with section 130 of the Act or
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the accounts do not accord with the accounting records
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.
- Please delete the words in the brackets if they do not apply.
Signed: Date: 30[th] May 2022 Name: Mrs Sheemul Fahim Relevant professional Association of Accounting Technicians (AAT) Level 2 qualification(s) or body (if any): Address: 39 Firwood Drive Camberley Surrey GU15 3QD
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Section B Disclosure
Only complete if the examiner needs to highlight matters of concern (see CC32, Independent examination of charity accounts: directions and guidance for examiners).
Give here brief details of any items that the examiner wishes to disclose .
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Independent Examination Checklist (CC32a)
The Examiner’s checklist has been prepared in accordance with The Charity Commission’s Direction and guidance for examiners (CC32).
| Direction | Direction Heading | Complete (Y/N) |
Examiner’s Comment | Document Reference |
|---|---|---|---|---|
| 1 | Check whether the charity is eligible to have an independent examination |
Y | The charity is permitted to have an independent examination. •Gross income is more than £25,000, but not more than £1 million •Aggregate value of Assets are below threshold for Audit |
Statement of Financial Activities DRAFT YE 31stJul 21 |
| 2 | Check for any conflict of interest that prevents the examiner from carrying out their independent examination |
Y | •No close or personal relationships with the trustee if the charity exist •Examiner us not a donor or has significant influence •Examiner has no involvement in day to day administration of the charity |
n/a |
| 3 | Record your independent examination | Y | Paper and Electronic copies of: •Appointment letter from Snell Associated •Fee invoice for independent examination •Independent examiner's report on the accounts •Sample Documents Reviewed |
Paper and Electronic copies available of records Appendix A |
| 4 | Plan the independent examination | Y | •the charity’s constitution - Checked •the way the organisation is controlled and managed – Checked •whether action has been taken on any previous recommendations for improvement •Ofsted Report 31stOctober 2017 – Improvement actions seen in Chairs Report 2021 •the accounting records and systems – Checked •the charity’s structure, its funds and how fund balances changed in the year – Checked •the charity’s activities in the year and spending and the financial risks the charity faces – Chair’s Report 2021 |
Little Oaks website; About Us Ofsted Inspection Kashflow Connect Accounting System Chair’s Report 2021 |
| 5 | Check that accounting records are kept to the required standard |
Y | •The accounting records are up to date and readily available. They provide sufficient information from which the charity’s financial position can be understood for the fiscal year •Details of income and expenditure have been recorded. Details of assets and liabilities have been recorded. |
Kashflow Connect Accounting System Bank Statements Payroll Reports |
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| •Records including vouchers, invoices, bank statements, etc., have been kept to support the •accounts |
Customer Fee Invoices Supplier Invoices |
|||
|---|---|---|---|---|
| 6 | Check that the accounts are consistent with the accounting records |
Y | •The accounts of the charity have been compared with the charity’s accounting records in sufficient detail. The examiner can reasonably conclude that the accounts are not materially inconsistent. |
Kashflow Connect Accounting System Bank Statements Payroll Reports Customer Fee Invoices Supplier Invoices |
| 7 | If the accounts are prepared on an accruals basis and one or more related party transactions took place the examiner must check if these were properly disclosed in the notes to the accounts. |
Y | No Related Party Transactions disclosed |
Notes to the Accounts, Section 4 |
| 8 | Check the reasonableness of the significant estimates and judgments and accounting policies used in accounting for the types of fund held and in the preparation of the accounts |
Y | The accounts have been prepared on the basis of historic cost convention, with items recognised at cost or transaction value |
Notes to the Accounts, Section 1 |
| 9 | The examiner must check whether the trustees have considered the financial circumstances of the charity at the end of the reporting period and, if the accounts are prepared on an accruals basis, check whether the trustees have made an assessment of the charity’s position as a going concern when approving the accounts |
Y | Minutes from the Trustees confirming their assessment of Going Concern and reserve policy Notes to the account indicate funding from Surrey County Council and Fees from Parents are sufficient to cover operating cost |
Chair’s Report 2021 Notes to Accounts: 1.2 Going Concern |
| 10 | Check the form and content of the accounts |
Y | The accounts have been prepared in accordance of Statement of Recommended Practice (SORP), The Charities Act and FRS 102 |
|
| 11 | Identify items from the analytical review of the accounts that need to be followed up for further explanation or evidence |
Y | No items identified which require follow up |
n/a |
| 12 | Compare the trustees’ annual report with the accounts |
Y | Accounts compared to Chairs Report – Specifically Furlough payments were noted. |
Chair’s Report 2021 |
| 13 | Write and sign the independent examination report |
Y | As per document coversheet | Page 1 of this document |
Appendix A - Sample Documents Reviewed
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Voucher, Invoices, Remittance, Bank Statements, Monthly Payroll Report
| Source Document | Category | Purpose | Reconciled to Accounts |
|---|---|---|---|
| Lloyds Bank Statement | Current Asset | Show year end cash balance | Yes |
| Invoice The Kite Academy (GRSI 150) |
Current Liability | Year end accrual balance for Rent | Yes |
| Monthly Payroll Report vs Bank Statement |
Expenditure | Reconcile Dec-20 and Jul-21 Monthly Payroll Reports to Bank Statement/Transaction |
Yes |
| Surrey CC Remittance Advice (REF: 7200258141) |
Current Asset | Year End Trade Debtors (10thAug-21) | Yes |
| The Grove Primary School (GRSI 160) |
Expenditure | Professional Fees (Legal Fees) relating to premises Lease vs Bank Statement |
Yes |
| Eon Gas Invoice (H1905C5F16) Lloyds Bank Statement |
Expenditure | 28thOct-20 Utility Bill, monthly DD, | Yes |
| Surrey County Council | Income (Grant) | Confirmation of Grant Payment from local authority in April 2021. Voucher, Kashflow and Bank Statement checked |
Yes |
| Fee Invoice / Email / Kashflow / Bank Statement |
Income (Fee) | Validate Fee Income from Parents Inv 1333 (Mar-21) |
Yes |
Additional Notes;
Kashflow Connect System, is the Accounting package used. A sample review of data and transactions was conducted which included;
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Supplier Invoices
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Customer invoices
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Journal entries
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Reports, including P&L, Balance Sheet and Trial Balance
The system data was reconciled to Bank Statements and paper documents, e.g. physical invoices, email correspondences, etc.
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