The trustees who are also directors of the charity for the purposes of the Companies Act 2006 present their report and accounts for the period ended 22 November 2024.
Stretton Pre-School is a company Limited by Guarantee incorporated in England and Wales at Companies House under company number 06565955 and is also registered with the Charity Commission for England and Wales under registration number 1128376.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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 2019)".
As laid out in its Memorandum of Association, the charity's objects 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 and training courses, 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 for all children whatever their race, culture, religion, means or ability,
Encouraging the study of the needs of such children and their families and promoting public interest in and recognition of such needs, and,
Instigating and adhering to and furthering the aims and objects of the Pre-school Learning Alliance.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The charity has adhered to its objectives in the period under review.
Stretton Preschool operates by the monies which we receive from Early Years funding from Cambridgeshire County Council and from the fees from the families that receive an invoice for their child’s session. The Pre-School increased fees in February 2024 due to inflation, staff wages and rental increase.
We run five bank accounts for the Pre-School. One of these is our main everyday account, one is a savings account which we usually use through the autumn term to see us through as we are often much quieter in children’s numbers during that term. However, this current academic year has been the opposite as we have had a large influx of families requesting spaces at both of our settings. The funds are then replenished in the summer term. We also hold a reserve account which we do not touch as this would only be used if the Pre -School was to get into financial difficulties and if we had to have redundancies or site closure.
We run a separate fundraising account which over the years has worked well. This money comes purely from events that we hold through the year such as the summer fayre, photos and art projects. Money raised is used to buy new resources for the Pre-School. We also paid for an entertainer called DNA kids for the Graduation party costing £379.00 and £134.07 for graduation gifts.
We also paid from the fundraising account for Wycombe Farm.
The summer fayre raised £1,525.48 after expenses, we were very grateful for the support from the following companies that donated to our Fun Day – Higgy’s, Big Sky, Full of Beans, Spanglish, Inspire play town, Posh, Molly’s munch box, Just for Dips, Burghley House, Mattoni, Babies connect, Jo Jiggles, Meridian Gymnastics, Gurkha Lounge, Entertainer.
Achievements and performance (continued)
We also used some of the money in the reserve accounts to replace equipment across the Pre-School we purchased new tables, stools, new role play equipment and art trollies. This was a big purchase for the Pre-School from the community playthings costing £11,683.20.
There were increased costs for pay rises for all staff members linking in with the national minimum wage increase from April 2024 at £11.44 and banding created for all Early Years Practitioners.
We had a new gate installed at the Fourfields site on 9 February 2024 costing £468.00 so that the children could access more garden area to expand on there Forest School skills.
Pre-School purchased a washing machine for the washing of the Forest school waterproofs and tea towels.
Managers laptop was replaced in July costing £949.
Tesco food vouchers were given to all staff at Christmas for the total value of £1,350.00 this was agreed with the Committee and shared with the families at the AGM.
All families that are eligible for Early Years Pupil premium funds received either food vouchers, resources or school uniform for their child that was due to start school September 2024.
Staff training that has been undertaken in the year:
Charlie Baxter- Mental Health First Aider
Sarah Welch– Mental Health First Aider
Chloe Anderson O’Connell– Mental Health First Aider
In January 2024 we had a whole staff training on Introduction to Forest School which was funded by Cambridgeshire County Council, we also had in April and introduction to mental health which cost £1,175.00.
As a whole the Pre-School have the following staff members:
Staff employed: Average of 23 Staff members (including administrator and Manager)
Level 5: 1 (CB)
Level 4: 2 (SW,KF)
Level 3: 12 (NA,CAO,OFJ,SS,SG,CH,AE,TM,EH,GM,ZW,SH)
Level 2: 1 (LS)
Unqualified: 8 (MS, CM (training),NB,HJ, JB, LI, NR, FP)
Total 15 staff qualified.
In September 2024 it was voted by the committee that we would look to change our legal entity to a Charity Incorporated Organisation (CIO).
Due to the transition from our old constitution to our new constitution it was agreed that we would run this years accounts until 22nd November 2024.
The trustees consider the financial performance of the charity for the year under review to be satisfactory.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the period.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Stretton Pre-School is registered as a company limited by guarantee (without share capital), company number 06565955 and registered as a charity, charity number 1128376. Its governing instrument is its memorandum and articles of association.
The charity's trustees are also the directors for the purposes of the Companies Act.
A management committee administers the charity. The committee members comprise the charity's trustees. The trustees are elected or appointed at committee meetings held during the period, with the officers being elected first. The trustees meet at least three times per period with every effort made to hold a meeting on a six weekly basis.
Members of the Management Committee are elected or appointed on an annual basis, with the officers being elected from the membership of the Management Committee.
Stretton Pre-School has neither custodian nor corporate trustees.
Stretton Pre-School is a member of the Pre-School Learning Alliance.
The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:
Trustees are recruited after due procedure and induction training is provided.
None of the trustees have any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
There were no transactions with related parties in the period under review.
The trustees, who are also the directors of Stretton Pre-School for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare accounts 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, including the income and expenditure, of the charitable company for that period.
In preparing these accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. 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.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Stretton Pre-School (the charity) for the period ended 22 November 2024.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, 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). 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.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no 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 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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.
Institute of Chartered Accountants In England and Wales
Price Bailey LLP
36 Tyndall Court
Lynchwood
Peterborough
PE2 6LR
Raising funds
The statement of financial activities includes all gains and losses recognised in the period.
All income and expenditure derive from continuing activities.
Stretton Pre-School is a private company limited by guarantee incorporated in England and Wales. The registered office is Amenity Centre, Main Street, Yaxley, Peterborough, PE7 3LU.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "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 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements cover a period of one year and 81 days between 1 September 2023 and 22 November 2024. The period was extended to fall co-terminus with the transfer of the charity to a CIO. The comparative period is a full year meaning that comparatives on the financial statements are not entirely comparative.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity, in the form of the newly constituted CIO, has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Local government grants are recognised when the charitable company is legally entitled to it after any performance conditions have been fulfilled.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure is accounted for on an accruals basis.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand and deposits held at call with banks.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Fees charged for sessions
Local authority funding for sessions
Restricted funding
Fundraising income
Raising funds
Fundraising costs
Food & Consumables
Office Costs
Rent & Rates
Maintenance and resources
Clothing
Subscriptions
Training & HR
Miscellaneous
EYPP
DAF
Included in staff costs is expenditure of £51,629 (2023: £50,566) which has been paid out of restricted fund income.
Payroll costs
Bank charges
None of the trustees (or any persons connected with them) received any remuneration or reimbursements during the period.
The average monthly number of employees during the period was:
There were no employees whose annual remuneration was £60,000 or more.
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Deferred income is included in the financial statements as follows:
EYPP (Early Years Pupil Premium) is a local government grant to help support our most disadvantaged children. Children will qualify if they are 3 or 4 years old, are receiving government-funded early education, and their parents receive benefits used to access eligibility for free school meals.
Special Education Needs inclusion funding is funded by Cambs County Council for children with additional needs.
Disability Access funding is to support children in the setting who have been awarded disability living allowance.
Ukrainian funding is to be used for the provision of education and childcare for children who have entered via Homes for Ukraine scheme.
The company is limited by guarantee and does not have a share capital. The directors are members of the company and each member, during his or her membership or within one year afterwards, undertakes to contribute a sum not exceeding £1 to the assets of the company in the event of it being wound up.
During the academic year, children of five of the trustees of the charity attended the pre-school. Fees were charged to the trustees at normal rates.