The Trustees present their report and financial statements for the year ended 31 August 2025.
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 Memorandum and Articles of Association, 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's objects are to introduce children between 2.5 and 5 years old to basic learning skills in a safe and enjoyable environment, prior to them entering mainstream education.
The policies adopted in furtherance of these objects are in accordance with the constitution of the Preschool Learning Alliance.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
Staffing and finance
The Autumn term 2024 was an extremely quiet start with only 14 children on role and session fulfilment rate of 39%. This was a considerable drop from the Summer 2024 at 71.9% and due to the exit of seven school leavers and two mid-term transfers, with no real waiting list ready to fill the gaps. However, these lower numbers enabled us to continue to work with just three members in the staffing team as attendance demand did not require more than two staff in per day and numbers were capped at 13 daily. As the year progressed, numbers remained low, increasing to a session fulfilment rate of only 54.8% at the end of the academic year. For much of the year, certain days were exceptionally quiet, meaning that finances were merely breaking even on staffing costs alone on these days. The profit and loss report demonstrates a £12k loss over the course of the academic year. The Autumn 2024 estimates payment actually falls into the 2023-24 financial year, meaning that the Autumn 2025 estimates would ordinarily have fallen into the 2024-25 financial year. However, due to a change in the structure of the funding payments, the Autumn 2025 estimates are now paid in the correct corresponding financial year, meaning that the profit and loss for 2024-25 is subsequently missing around £5.5k worth of income. A more accurate representation of the year is a loss of £6.5k and is due to the fact that staffing costs remain fixed (circa £50k) whilst income was drastically reduced (circa £49k).
This year was a very stable one with regards to staffing. Early years educator, Lola Purton, was able to increase her hours to three days per week for the duration of the year, which has supported her in feeling a well-established member of the team and increased knowledge of the day to day running of the preschool. Lucie Davies worked a three-day week in setting, with a management day in place on Wednesdays. Leah Stanford continued in her role as Deputy and SENCo, working four days in setting. Leah Stanford continues to work on Stage 3 and 4 of the development plan set in place for managerial development and has provided the team with knowledgeable support and direction with regards to SEND information.
Building plans
Discussions began in previous years regarding the potential for improving the building or location of the preschool. At the beginning of the year, several meetings had been held between Mr Chris Williams, Headteacher of West Dean Primary School, Mr Ian Graham, Head of West Dean Estate, Lucie Davies and members of the Committee. A few solutions had been discussed, one being a potential relocation further onto the school site. West Dean Estate then kindly paid for some initial architectural drawings to be produced as potential space solutions. However, the raising of funds for this would pose a huge challenge. West Dean Estate then proposed a second site within the village and the staff team along with key members of the Committee visited the site to assess potential. The building itself was not suitable as it was, so discussions were had about potential changes and development to make it usable. Unfortunately, the build costs to West Dean Estate would mean a 2000% increase in rental costs for the preschool and is therefore simply not a viable option. It has therefore been decided that current available monies will be put towards improving the current building, including the front façade, decking area, internal kitchen configuration and addition of a proper staff office/rest room.
Sustainability plans
Throughout this academic year, the attendance data has been extremely low. Early in the year, a survey was conducted with current, past and potential (from the primary school) parents to try and ascertain childcare need and whether there was potential or capability for the preschool to fulfil this requirement. Discussions have been held amongst the committee, considering the extension of opening hours to better cater for some working families, although this will not extend to full day care hours. At the end of the Summer 2025, an application was made to the West Sussex Funding team to extend funded hours to 30 hours per week and opening hours which will be fee paying. We have not yet received a decision to the application.
Staff recruitment
With consideration being given to longer opening hours, it will be necessary to employ further staff, not just to fulfil any increase in demand to open to full capacity of 17 children per day, but also to cover any lunchbreaks required due to longer staff working hours. Ratio requirements stipulated in the Early Years Framework differ based on whether there are 2 or 3 qualified members of staff in setting. With only 2 staff required in ratio, any lunchtime cover will also need to be fully qualified. With 3 staff required in ratio, lunchtime cover can be fulfilled by an unqualified member of staff. The recruitment process will begin early in the Autumn 2025 term.
Funding and voluntary charges
The preschool is largely only able to survive because it is a charity, and that controls some of the fixed costs. The higher funding rate for FE funded 2 year olds has actually improved some income, as thus far, the preschool has not charged a different rate for 2 year olds, despite the higher staffing ratios, therefore earning more per hour for funded two year olds than we do for fee paying children. In reality though, not many of our 2 year olds actually qualify for the working family funding, which raises the questions as to whether our fee charges should be more for 2 year olds to account for higher staff ratios. The 30 hour FE scheme now provides an hourly rate that is quite closely in line with our own rates, and these fee paying figures need to be considered in order to better meet costs.
All parents this year have opted in to paying the minimal contribution for snack fees, resulting in an additional £1,156.84 income. The option was also given to ‘overpay’ invoices in terms of a voluntary contribution which would go directly into preschool resources. Parent contributions across the latter end of the financial year totalled £128.35 and will be a continued option next year. The private fees were reviewed in March 2024 and set to increase from September 2024, with a 15% increase across the board. The private fees have not been reviewed during this financial year. The committee remains mindful of the pre-school’s commitment to provide affordable Early Years provision to the local community and careful consideration was taken to ensure fees remain well below those of private nurseries or similar preschools in the area. However, with the general rising costs (e.g. rent/resources/utilities/NLW), combined with a drop in role numbers, we will need to consider an approach which discriminates between 2/3 year old children.
It continues to be important that the Committee raises its profile within the parent community, inviting new members to be involved in fundraising activities and future proofing the Committee for the coming years. In practical terms, preschool is a ‘committee run, charity pre-school’. The committee is the employer, it provides the trustees of the registered charity and the directors of the limited company.
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 reserves held as at 31 August 2025 was £62,737, this is line with the Charity's policy. 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 year.
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.
The Charity is a company limited by guarantee incorporated under the Companies Act 2006 on 18 March 2010 and is a registered charity (number 1143896).
The Trustees, who are also the directors for the purpose of company law, and who held office during the year and up to the date of signature of the financial statements were as follows:
The charity is run by a parent elected committee, with volunteers being elected into key positions by committee members.
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.
On behalf of the board of Trustees
I report to the Trustees on my examination of the financial statements of West Dean Preschool (the Charity) for the year ended 31 August 2025.
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.
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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
West Dean Preschool is a private company limited by guarantee incorporated in England and Wales. The registered office is West Dean, West Sussex, Chichester, PO18 0RJ.
The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, 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 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 financial statements 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 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.
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.
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.
All expenditure is accounted for on an accruals basis and includes attributable VAT.
Governance costs are those associated with constitutional and statutory requirements.
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:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
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, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
School fees
Rent
Rates
Insurance
Light and heat
Repairs and maintenance
Cleaning
Toys, books and uniforms
Printing, stationary and postage
Telephone
Computer costs
Bookkeeping
Sundry expenses
Staff training and subscriptions
Independent examination
None of the Trustees received any remuneration or benefits from the Charity during the year.
The average monthly number of employees during the year was:
The remuneration of key management personnel is as follows.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
The spouse of Andrew Davies, a trustee, is an employee of West Dean Preschool. This employee received remuneration of £19,268 in the year and was employed in line with normal market terms. The trustee took no part in the decision of her employment, as she was already employed by the charity prior to his appointment.