Pre-school Learning Alliance Trustees’ Annual Report and ...
Transcript of Pre-school Learning Alliance Trustees’ Annual Report and ...
Pre-school Learning Alliance
Trustees’ Annual Report and Accounts
Year Ended 31 March 2010
Charity number: 1096526
Company number: 4539003
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CONTENTS
Legal and Administrative Information 5 - 6
Trustees’ Annual Report 8 - 21
Independent Auditor’s Report 22
Consolidated Statement of Financial Activities 25 - 26
Consolidated and Charity Balance Sheets 27
Consolidated Cash Flow Statement 28
Notes to the Accounts 29 - 48
5 - 6
8 - 21
22 - 23
25 - 26
27
28
29 - 49
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LEGAL AND ADMINISTRATIVE INFORMATIONYEAR ENDED 31 MARCH 2010
BOARD OF TRUSTEES
The members of the Board of Trustees at the date of approval of the accounts are as
follows:
Anne Clark
Sylvia Hillan
Elizabeth Marlow (Honorary Treasurer)
Graham McMillan
Janette Parker
Sue Thomas (Vice Chair)
Judith Thompson (Chair)
Debbie Walsh
Susan Yardy
Lorraine Young
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LEGAL AND ADMINISTRATIVE INFORMATION (CONTINUED)YEAR ENDED 31 MARCH 2010
COMPANY SECRETARY Steve Alexander (resigned 6 February 2010)
Katharine Heeps (appointed 6 February 2010)
PRINCIPAL OFFICERS Chief Executive Steve Alexander
Director of Human Resources Paul Donaldson
Director of Quality Improvement Michael Freeston
Director of Finance Katharine Heeps
Director of Communications Neil Leitch
Director of Special Projects Rita Sutton
Director of Business Development John Theedom
BANKERS National Westminster Bank plc
280 Bishopsgate
London
W1U 2AR
STATUTORY AUDITOR Horwath Clark Whitehill LLP
St Bride’s House
10 Salisbury Square
London
EC4Y 8EH
SOLICITORS Sherrards
18 Bentinck Street
London
EC4A 3JB
NATIONAL CENTRE 188 York Way
London
N7 9AD
WEBSITE www.pre-school.org.uk
CHARITY NUMBER 1096526
COMPANY NUMBER 4539003
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TRUSTEES' ANNUAL REPORT YEAR ENDED 31 MARCH 2010
The Trustees are pleased to present their report and audited accounts for the year ended
31 March 2010.
The report has been prepared in accordance with the Companies Act 2006 and the
Charities Acts 1993 and 2006. The attached accounts have been prepared in accordance
with the accounting policies set out on pages 29 to 32 and comply with the charitable
company’s Memorandum and Articles of Association, applicable laws and the requirements
of the 2005 Statement of Recommended Practice Accounting and Reporting by Charities.
Legal and administrative information
The Pre-school Learning Alliance (the charity) is a registered educational charity (charity
number 1096526) and company limited by guarantee (company number 4539003).
The Trustees during the year and holding office up to the date of approval of this report
were as listed on page 5.
The charity’s members undertake to pay no more than £1 towards the charity’s assets in
the event of the charity being wound up. The Trustees of the charity are also members of
the charity.
The principal office of the charity is at 188 York Way, London, N7 9AD. The names and
addresses of principal advisors are set out on page 6.
Structure, governance and management
The charity structure consists of the Board of Trustees and 102 sub-committees. Sub-
committees have an Executive Committee elected by members in their geographical area.
The charity is administered from a national centre in London and four divisional offices. The
charity has 14,000 members. Informal groupings of members meet as Alliance Communities.
The Board of Trustees is the governing body of the Pre-school Learning Alliance. The
Board of Trustees is the board of directors under company law. The Board of Trustees
meets at least four times per year and is made up of between eight and twelve Elected
Trustees and up to four Appointed Trustees. Elected Trustees are elected by the members
and their names presented at the annual general meeting (AGM) of the charity, which
normally takes place in June. Appointed Trustees are agreed at the summer meeting of the
Board of Trustees. The period of office of the Board of Trustees is two years.
Four Divisional Councils act as the advisory bodies of the charity reporting to and
consulting with the Trustees on matters of policy. The Divisional Councils are made up of
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TRUSTEES' ANNUAL REPORT (CONTINUED) YEAR ENDED 31 MARCH 2010
up to four volunteer representatives from each of the charity’s sub-committees and act as
the electoral colleges for the Board of Trustees from amongst the charity’s members. Each
Divisional Council meets at least once per year.
Appointed Trustees are selected by virtue of their background, knowledge and experience
and bring skills that are complementary to those of the Elected Trustees. The charity’s
Nominations and Procedures Committee is responsible for identifying these individuals on
behalf of the Board of Trustees.
New Trustees are given an induction pack on election or appointment. This is followed by
an induction programme including the Board Development Programme - a training
programme based on the skills audit which is carried out every two years between the
election and commencement of office.
The elected and appointed Trustees in Waiting due to take up office on 1 January 2011 are
as follows:
Denise Aldridge
Val Chadwick
Anne Clark
David Gilbert
Mark Hart
Louise Hawksworth
Sylvia Hillan
Lisa Maidment
Graham McMillan
Janette Parker
Debbie Walsh
Helen Winter
The Board of Trustees appoints the Chief Executive who is accountable to the Trustees for
day-to-day management of the charity and implementation of policy and the strategic plan
as approved by the Trustees. The three-year strategic plan is approved by the Board of
Trustees after extensive consultation with volunteers and staff. The annual operational plan
contains quarterly targets which detail the objectives and milestones required to deliver the
strategic plan. The Trustees receive quarterly reports on achievements against target.
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During the absence through sickness of the Chief Executive, Steve Alexander, the Director
of Communications has been Acting Chief Executive and the Director of Special Projects
has been Acting Executive Director.
The Trustees have given due regard to the guidance issued by the Charity Commission on
public benefit principles and have reviewed all activities and plans outlined in this report to
ensure that they comply with the principles. The Trustees will set objectives based on their
assessment of public need in the area of childcare and education of those caring for and
working with young children.
Risk management
The Board of Trustees has put in place a risk management process which identifies key
events or incidents that could affect the charity’s ability to achieve its aims. This process
results in a record of the most significant risks, both internal and external. For each, the
possible impact or consequence of the risk and the required action are stated. The Board
of Trustees seeks reasonable assurance that these risks have been adequately managed
and are satisfied that appropriate procedures and controls are in place to manage the
risks. Review of individual risks is delegated by the Board of Trustees to the Audit
Committee who report to the Board by exception and after every meeting.
As a charity providing care for children the Trustees acknowledge that the organisation is
exposed to certain risks as part of carrying out these activities, for example death or injury
to children whilst in the organisation's care. The Trustees have put in place systems to
seek to identify and assess the key risks that the charity faces and have put in place
controls to seek to manage these risks. However, no control system can be infallible and in
addition certain key risks remain. These are potential future changes to government policy,
changes to government commissioning arrangements and the financial sustainability of
nurseries. There is clear evidence that government-wide austerity measures will impact on
funding at national and local level and the Trustees are considering measures to mitigate
the impact of proposed and potential funding cuts on the charity’s beneficiaries.
The charity’s strategic planning process and written procedures have been reviewed by the
Board of Trustees to ensure that they include measures to manage the major risks. The
charity’s principal officers are working within this framework on a day-to-day basis.
Objectives and activities
The objects of the charity are to enhance the development and education of children and
the families 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:
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(i) encouraging the formation of and by forming groups offering appropriate play
facilities, together with the opportunity for parents to take responsibility for and to
become involved in the activities of such groups;
(ii) offering continuing support, encouragement and help to such groups, and in
particular to ensure that such groups offer opportunities for all children regardless
of race, culture, religion or means;
(iii) holding courses, discussions, conferences, meetings and publishing magazines,
books, pamphlets and papers relating to the objects;
(iv) developing, encouraging and organising appropriate training for the achievement of
the objects;
(v) conducting research into and encouraging the study of the needs of such children
and their families and promoting public interest in the recognition of such needs;
(vi) co-operating with other charitable organisations and persons having similar objects
anywhere in the world;
(vii) co-operating with statutory and other bodies, organisations and services;
(viii) promoting and furthering any other relevant charitable objects.
The charity aims to give children the best start in life through quality childcare and
education and parental involvement in early years settings. This is achieved by supporting
and representing our grass roots, community-based members and by giving support to the
charity’s own settings where a need has been identified. The charity’s quality improvement
scheme, Reflecting on Quality, is at the heart of ensuring that quality is maintained and
enhanced. The charity’s commitment to the development of adults’ vocational, literacy and
other skills through learning is demonstrated through its accredited training courses and
family learning programmes.
The public benefit of these activities is the increased access to affordable, local and
flexible childcare provision and the confidence that Alliance directly owned and member
settings are supported and encouraged to improve continuously the quality of services they
provide. 9,000 families use Pre-school Learning Alliance owned settings and a further
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TRUSTEES' ANNUAL REPORT (CONTINUED) YEAR ENDED 31 MARCH 2010
650,000 use its member settings. These settings are established around a core belief that
parents are the first and best educators of their children and as a result parent forums and
parent committees are established to empower parents and give them a greater
involvement in the childcare provided. Alliance involvement in the Neighbourhood
Nurseries and Children’s Centre initiatives has extended high quality childcare into areas of
disadvantage, providing a range of benefits and services for families. The charity’s training
and learning programme is based in accessible community settings to ensure that
individuals do not face barriers to developing skills.
The core activities of the charity are closely aligned to a number of coalition government
priorities, in particular the Freedom, Fairness, Responsibility programme which aims to
make Britain the most family-friendly country in Europe.
In 2009-10, the main objectives were to secure Alliance involvement in a further 48
children’s centres, run training courses for 8,094 learners, increase services for
unregulated childcare, 110 enrolments on Reflecting on Quality and ten new publications.
Other objectives per last year’s ‘Plans for the Future’ were setting up baby and toddler
services in 60 children’s centres, introducing a volunteer workbook and portfolio of
achievement and extending the nutritional campaign. Achievement against these objectives
is set out in the achievement and performance section.
Policy and strategic planning are driven by the charity’s national centre working closely
with strategic partners, national policy makers and employers. The charity’s sub-
committees develop local activities within this framework and secure funds locally to carry
out this work. Operational target setting takes place at national level following consultation
with divisional and local staff. Each level of the organisation agrees targets and activities
which contribute to the overall delivery of the operational plan.
Volunteering
Alliance Communities have been established to give volunteers an opportunity to meet at a
local level to discuss issues of concern to them and to seek ways to meet the needs of
beneficiaries in their area. These are informal groupings and can take the form of
meetings, events or fundraising. Locality Forums have provided an opportunity to consult
with volunteers face to face and to ensure that the views of volunteers are heard and taken
into account when policy and procedures are being drawn up. These will bring together
volunteers from two or more sub-committee areas.
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During the year, 757 volunteers gave an estimated 26,774 hours of their time to the charity.
11,118 of these hours were given to committee work at a local level.
At the charity’s 2010 conference, the Pre-school Learning Alliance Volunteer Awards were
presented for the third year. The Volunteer Awards afforded the Alliance the opportunity to
recognise the vital role played by volunteers in the charity's work. The four categories were
Outstanding Pre-school Committee Volunteer, Outstanding Volunteer at a Baby and Toddler
Group, Outstanding Volunteer at a Pre-school or Nursery and Lifetime Achievement. The
winner of the Lifetime Achievement Award was Peggy Baker whose commitment to
volunteering started 45 years ago when she first took her daughter to playgroup. Soon after
that day, Peggy was on her first course and since then she has been a committed and
hardworking ambassador for the Alliance. She is still involved in a local pre-school today.
Achievements and performance
Learning and quality improvement1,787 learners undertook Alliance qualification courses across levels 1, 2 and 3. A further
4,356 learners undertook non-accredited professional development training. This total of
6,143 compared to a combined target of 8,094. The decline in activity relates to the
decreased level of financial support for practitioners to undertake non-accredited
continuing professional development training. Support for learners on qualification courses
from the Learning and Skills Council accounted for just over 50% of fee levels in most
cases (full fees are paid if the learner is under 19 years of age, in receipt of benefits or is
pursuing their first level 2 qualification). Securing the residual 50% of income, either from
the learner themselves, their employer or local authority is increasingly challenging.
Enrolments onto work-based assessed provision continued to increase slowly. 53 learners
were supported on Train to Gain and Apprenticeship provision (against a target of 48).
Along with all training providers the Alliance’s Train to Gain delivery performance was
affected hugely by the withdrawal of new funds by the Learning and Skills Council.
The Alliance’s quality improvement scheme, Reflecting on Quality, provides a framework
through which settings as a whole can improve the provision they offer to children and
families. All Alliance managed settings are progressing through the scheme and 100
member settings have enrolled (against a target of 110). The scheme contributes to the
range of services and resources offered by the Alliance which combine to support settings
improve their practice. These include publications and training courses on leadership and
management, guidance and support on curriculum planning, inclusion and engaging
effectively with mothers and fathers.
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The charity works with national policy makers, local authority funders and settings to
ensure that the Alliance’s vocational training offer meets the needs of employers,
consumers and learners. The Alliance’s early years experts provided consultancy
supporting a range of organisations including Children’s Workforce Development Council,
National Strategies (Early Years) and local authorities ensuring that its key beliefs and
approaches to early years care are extended beyond its own provision and membership to
the wider early years sector.
The Alliance is now well prepared to deliver the new generic Children’s Workforce
qualifications when they come on stream in September 2010.
Provision of childcare servicesThe charity managed 137 registered childcare settings, ran 361 baby and toddler or drop-
in groups and delivered 2,815 crèches.
The charity aims to provide services where there is a recognised need. Of the charity’s 137
registered childcare settings, the majority are delivering services in the 30% most socially
and economically deprived areas of England.
Outreach services for children and familiesThe charity has found an increasing public need for outreach services for children and
families and is offering a growing range of services to meet this need. Independent
research has shown that the families who are hardest to reach are often not accessing the
children’s services provided for them. The charity’s specialist outreach workers work with
families in their homes and support families in accessing services delivered through
children’s centres, offering alternatives to the formal services if needed.
The charity secured involvement in a further 56 children’s centres (compared to a target
of 48) providing an additional 550 new childcare places in areas of need and a wide
portfolio of outreach services. The charity’s involvement in phase three children’s centres
focuses on family services rather than childcare. Eleven of the 56 new centres offer service
to children and families including advice and guidance on parenting, nutrition and benefits
entitlements. The charity set up baby and toddler services in 90 children’s centres
(target 60).
The charity runs 34 subsidised toy libraries, used by pre-schools and parents in areas of
disadvantage.
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The charity has increased support for unregulated childcare settings such as baby and
toddler groups. A series of fundamental resource materials dealing with structure,
safeguarding and sustainability have been produced.
Business and development work for early years settingsThe charity employs 481 pre-school development workers and business support officers
who provide settings with advice, guidance and management support. 533 pre-schools
use the charity’s payroll services. The charity is funded to provide inclusion support for
early years settings where there is a gap in service provision and to channel information
between the Department for Education and practitioners on best practice to encourage and
support inclusive services.
The 2010 inclusion conference in Milton Keynes was attended by 200 individuals from
settings and from external agencies such as primary educators, Area Special Educational
Needs Coordinators and staff from Primary Care Trusts. The conference focussed on a
range of topical issues including Ofsted’s inspection of inclusion, theories of attachment
and consideration of the impact of the new Equalities’ Act.
Membership and campaigningMembership benefits include a range of specialist products and services such as free
information and advice, a competitive and comprehensive insurance package and access
to a legal helpline 24 hours a day.
Ten new publications were issued (target ten). The new titles include: The Essential EarlyYears Cookbook which provides recipes and advice for preparing healthy meals and
snacks; Where’s Dad? a guide on how to engage effectively with fathers; Early Adventureswhich provides guidance on running baby and toddler groups; The Employee Handbookwhich assists with advising on policies, procedures and guidelines; Website Developmentand Design which details the various steps of creating a website for the early years; and
Reflecting on Behaviour which outlines supporting children’s social, emotional and
behavioural development.
Grants payableThe charity appoints a national grants panel of volunteers to provide assurance that the
criteria for funding and the paying of grants are met. The charity’s sub-committees have
delegated power to award grants to assist pre-schools or subsidise pre-school places.
Eight local authorities have funded the charity to target and distribute grant aid to groups
most in need of financial support.15
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TRUSTEES' ANNUAL REPORT (CONTINUED) YEAR ENDED 31 MARCH 2010
Plans for the future
The charity will continue to work with its strategic partners – parents, families, community-
based groups, local authorities and the Department for Education – to provide high quality
care and education for children, to improve the sustainability of groups and to promote the
involvement of parents in all aspects of their children’s education. In particular, the charity
will identify new support mechanisms for early years settings in response to the forecast
withdrawal of funding from local authorities for community groups.
The charity has a target to extend its network of children’s centre work and secure an
involvement in a further 35 children’s centres across the country. The charity will continue
to provide services for ‘0-3’ year olds and their families and has a target to provide baby
and toddler or family learning services in 70 children’s centres or equivalent settings.
The charity will respond to changes in the organisation and funding of early years
qualifications and training to ensure that staff and volunteers have the skills and knowledge
they need to undertake their roles successfully. The target for learners on qualification
courses is 1,695.
The charity has a target of 15% of its own settings achieving Reflecting on Quality. In
addition a target of 160 member setting enrolments has been set.
Twelve new publications are planned for 2010-11. A publication concentrating on the
holistic approach to reflective practice is planned, providing practitioners with the tools and
a clear focus to reflective activities. A guide focusing on engagement with males in the
early years will also be produced.
The charity will produce resources to support settings’ work in the area of environmental
awareness and climate change.
The Volunteer Strategy Group has set a target to develop a new approach to engaging
volunteers through its network of Alliance Communities and Parent Forums.
Financial review
The consolidated Statement of Financial Activities shows a deficit of £1,335,000 in the year
for the charity: this includes national centre, divisions and sub-committees. Incoming
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resources for the year increased by 1% to £40,197,000 whilst expenditure increased by
3%. The last financial year saw significant pressures on our ability to maintain sustainable
settings as a result of withdrawal of funding, increased unemployment and increased costs
of essential resources. In the forthcoming year, the charity is aware that there will be
intense pressure on traditional income sources and will seek to align expenditure with
income and build reserves.
Learning and quality improvement income decreased by 13% to £2,346,000. Income
relating to provision of childcare services increased by 2% to £18,033,000. Expenditure
increased by 2% to £19,723,000. Local funding for childcare settings and crèches has
decreased by 7%. Unless appropriate levels of funding are adequately maintained, it is
highly likely that the support the charity offers to vulnerable children and families will be
greatly reduced. The Coalition Government has indicated a desire to support the neediest
families but we continue to be advised of intended austerity measures at a local level.
The increase in income over the year for outreach services was 83%. During the year the
charity has successfully secured involvement in children’s centre activities and has
launched new projects for families.
Income relating to business and development work has decreased by 4% to £12,359,000.
The charity has witnessed ongoing reduction in commissioning of traditional development
work services by local authorities. As a result, the charity has had some success in
reaching beneficiaries through outreach and childcare provision as well as investigating
alternative sources of funding for traditional services for the charity’s beneficiaries.
The net value of the balance sheet decreased by £1,335,000. Investments increased by
£273,000 to £935,000. £250,000 was transferred from cash to a fixed interest fund in the
year and realised gains on revaluation amounted to £23,000. The net book value of
tangible fixed assets decreased by £256,000 from £2,976,000 to £2,720,000. Depreciation
for the year was £380,000.
Going concern
The charity’s activities, together with the factors likely to affect its future development and
performance, are set out in the ‘Achievement and Performance’ and ‘Risk Management’
sections. The financial position of the charity is set out in the ‘Financial Review’ above. The
current economic conditions create further uncertainty over funding streams following
negative cash flows in 2010. Cost-saving measures have been taken and forecasts
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indicate that the charity can operate with current cash levels. The Trustees are confident
that the charity has adequate resources to continue as a going concern.
Reserves policy
The general fund represents the unrestricted funds arising from past operating results.
The Board of Trustees has established a reserves policy which aims to meet the needs of
both current and future beneficiaries of the charity. The aim of the reserves policy is to
hold adequate general funds to sustain charitable activities in the event of future income
variation or increases in operational costs. It recognises the need to respond to changes
to the major risks and to be able to meet the commitment of providing early years services
to children and their families.
The Board of Trustees has established a policy which states that the most appropriate
level of free reserves of the charity (i.e. those unrestricted funds not committed or invested
in tangible fixed assets) should be between four and five months of operating expenditure.
At this level, the Board of Trustees believes that it would be able to continue the operations
of the charity in the event of a drop in funding while alternative sources of funding were
considered.
The general fund is reviewed annually to reassess the risks and reflect changes in
activities, obligations and funding levels. The Trustees recognise that the balance of the
general fund of £6,107,000 does not reach the target level of free reserves and have
included steps in the charity’s strategic plan to raise additional unrestricted funds. The
movements on unrestricted funds and details of designations made by the Trustees are set
out in note 19 to the accounts. The movements on restricted funds are set out in note 20.
Investment policy
The Trustees recognise the need to retain sufficient liquid assets to meet the charity’s
short-term obligations. The Trustees’ investment policy is to minimise risk to the capital
value of the charity’s assets because those assets largely represent working capital.
Therefore, the charity’s funds are invested in low-risk cash deposits which are pooled and
placed on overnight deposit. Sub-committee funds are kept in separate accounts within
the charity’s group arrangement. The charity has no limitations on its investment powers.
The net proceeds of the sale of two properties in 2006 were invested in Common
Investment Funds. The aim is to achieve high yield rather than capital growth. The policy
states that no more than 25% of these funds will be invested in equities and that no more
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than 35% will be invested in property. At 31 March 2010 10% of investments were held in
equities and 10% were held in property. The policy also states that the level of reserves
invested in equities should not normally exceed 10% of free and designated reserves. In
2009-10 the percentage was 1%.
Return on investment was 0.5% (2009: 4.2%). Interest rates on bank deposits in 2009-10
remained low throughout the year. Average income earned from common investment funds
increased from 3.7% to 4.2%.
Employment policy
The charity is an equal opportunities employer and will apply objective criteria to assess
merit. It will ensure that no job applicant or employee receives less favourable treatment.
All employees are helped and encouraged to develop their full potential and the talents of
the workforce will be fully utilised to maximise the efficiency of the organisation.
The charity has Investors in People status and has recently been awarded the Positive
about Disabled People symbol, which means that we are committed to employing people
with disabilities and adopting five key commitments. A range of new interventions have
been introduced to further improve performance and engagement including an annual
employee survey, team recognitions scheme and a bespoke management and leadership
development programme for Nursery Managers. Policies and procedures are reviewed
regularly to meet employment law requirements.
153 staff are employed nationally and divisionally and a further 2,918 staff are employed,
mainly part-time, as local pre-school development workers, nursery staff, administrative
staff and tutors. A structure is in place to encourage gathering and dissemination of
information between staff.
Environmental policy
The charity has made a commitment to promote environmental issues as a fundamental
element of its activities and is resolved to continual improvement in environmental practices.
As a charity committed to supporting young children and families, the Trustees are aware
that the human causes of climate change pose a threat to children’s livelihood and
wellbeing. The charity will promote sustainable citizenship and ecological awareness
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through the early years curriculum and promote active engagement of families in projects
to raise environmental awareness.
The charity is also implementing programmes to improve the way it manages its own
environments.
Subsidiary companies
The accounts included in this report represent the consolidated results of the charity and
its subsidiary company, Pre-school Learning Alliance Trading Limited (PLAT). The main
objective of PLAT is the promotion of the aims of the charity by obtaining sponsorship and
other funds. This company pays all of its taxable profits to the charity via Gift Aid. An
operating profit of £504,000 (2009: £515,000) was made in the year. A summary of the
company’s trading results is set out on page 35 of the attached accounts.
In August 2007, the charity made a subordinated loan of £25,000 to its trading subsidiary
to ensure that the company fulfils Financial Services Authority capital resource
requirements. The loan is unsecured and does not bear interest and there are currently no
set repayment terms in place.
Statement of Trustees’ Responsibilities
The Trustees are responsible for preparing the Trustees’ Report and the financial
statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year
in accordance with United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards) and applicable law.
Under company law the Trustees must not approve the financial statements unless they
are satisfied that they give a true and fair view of the state of affairs of the charitable
company and the group and of the surplus or deficit of the group for that period. In
preparing these financial statements, the Trustees are required to:
select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any
departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate
to presume that the charitable company and the group will continue in business.
20
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TRUSTEES' ANNUAL REPORT (CONTINUED) YEAR ENDED 31 MARCH 2010
The Trustees are responsible for ensuring that adequate accounting records are maintained
that are sufficient to show and explain the charitable company’s and the group’s transactions
and disclose with reasonable accuracy at any time the financial position of the charitable
company and the group and enable them to ensure that the financial statements comply
with the Companies Act 2006. They are also responsible for safeguarding the assets of the
charitable company and the group and ensuring their proper application in accordance with
charity law, and hence for taking reasonable steps for the prevention and detection of fraud
and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial
information included on the charitable company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of financial statements may differ from legislation
in other jurisdictions.
The following statements have been affirmed by each of the Trustees of the charitable company:
so far as each Trustee is aware, there is no relevant audit information (that is,
information needed by the company’s auditors in connection with preparing their
report) of which the company’s auditors are unaware; and
each Trustee has taken all the steps that he/she ought to have taken as a Trustee
in order to make himself/herself aware of any relevant audit information and to
establish that the company’s auditors are aware of that information.
Auditor
Horwath Clark Whitehill LLP have expressed their willingness to continue in office as
auditor and a resolution proposing their reappointment will be submitted to the forthcoming
Annual General Meeting.
Approved by the Trustees on 14 September 2010
and signed on their behalf by
Judith Thompson
Chair
21
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OFPRE-SCHOOL LEARNING ALLIANCE
We have audited the group and parent company financial statements of Pre-school Learning
Alliance for the year ended 31 March 2010 set out on pages 25 to 49. These financial
statements have been prepared in accordance with the accounting policies set out therein.
This report is made solely to the charitable company’s members, as a body, in accordance
with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken
so that we might state to the charitable company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the
charitable company and the company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Respective responsibilities of trustees and auditor
The trustees’ (who are also the directors of Pre-school Learning Alliance for the purpose of
company law) responsibilities for preparing the Annual Report and the financial statements in
accordance with applicable law and United Kingdom Accounting Standards (United Kingdom
Generally Accepted Accounting Practice) and for being satisfied that the financial statements
give a true and fair view are set out in the Statement of Trustees’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and
regulatory requirements and International Standards on Auditing (United Kingdom and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair
view and are properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice and have been prepared in accordance with the Companies Act 2006.
We also report to you if in our opinion the information given in the Trustees’ Annual Report
is not consistent with the financial statements.
In addition, we report to you if, in our opinion, the charitable company has not kept
adequate accounting records, if the charity’s financial statements are not in agreement with
those records, if we have not received all the information and explanations we require for
our audit or if certain disclosures of trustees’ remuneration specified by law are not made.
We read the Trustees’ Annual Report and consider the implications for our report if we
become aware of any apparent misstatements within it. Our responsibilities do not extend
to other information.
22
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Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (United
Kingdom and Ireland) issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and disclosures in the
financial statements. It also includes an assessment of the significant estimates and
judgments made by the trustees in the preparation of the financial statements, and of
whether the accounting policies are appropriate to the charitable company’s
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations
which we considered necessary in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements are free from material misstatement,
whether caused by fraud or other irregularity or error. In forming our opinion we also
evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
the financial statements give a true and fair view of the state of the group’s and the
parent company’s affairs as at 31 March 2010 and of the group’s incoming
resources and application of resources, including its income and expenditure, for
the year then ended;
the financial statements have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice;
the financial statements have been prepared in accordance with the Companies
Act 2006; and
the information given in the Trustees’ Annual Report is consistent with the financial
statements.
Tina Allison
Senior Statutory Auditor
For and on behalf of
Horwath Clark Whitehill LLP
Statutory Auditor
St Bride’s House
10 Salisbury Square
London
EC4Y 8EH Date: 28 September, 2010
23
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OFPRE-SCHOOL LEARNING ALLIANCE (CONTINUED)
Annual Report and Accounts 2010v7.qxp:Full and Final Accounts 2004 rev 1.5.qxd 1/12/10 09:08 Page 23
Annual Report and Accounts 2010v7.qxp:Full and Final Accounts 2004 rev 1.5.qxd 24/11/10 10:39 Page 24
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATINGAN INCOME AND EXPENDITURE ACCOUNT)FOR THE YEAR ENDED 31 MARCH 2010
INCOMING RESOURCES
Incoming resources from generated funds:
Voluntary income
Investment income
Incoming resources from charitable activities:
Learning and quality improvement
Provision of childcare services
Outreach services for children and
families
Business and development work
for early years settings
Membership and campaigning
Other income
Total incoming resources
RESOURCES EXPENDED
Charitable activities:
Learning and quality improvement
Provision of childcare services
Outreach services for children and
families
Business and development work
for early years settings
Membership and campaigning
Governance costs
Total resources expended
Net (outgoing) resources for the year
before transfers
Transfers between funds
Net (outgoing) resources
Unrealised gain/(loss) on investments
Net movement in funds
(carried forward to page 26)25
Notes
2
3
4
5
13
7
20(b)
Unrestrictedfunds
£'000
296
49
2,345
17,485
3,473
11,795
2,643
288
38,374
2,711
19,028
3,803
11,604
2,480
39,626
101
39,727
(1,353)
22
(1,331)
22
(1,309)
Restrictedfunds
£'000
7
-
1
548
703
564
-
-
1,823
13
695
676
433
11
1,828
-
1,828
(5)
(22)
(27)
1
(26)
Total2010
£'000
303
49
2,346
18,033
4,176
12,359
2,643
288
40,197
2,724
19,723
4,479
12,037
2,491
41,454
101
41,555
(1,358)
-
(1,358)
23
(1,335)
Total 2009
(restated)
£'000
504431
2,68317,743
2,285
12,8422,843
340
39,671
3,20419,322
2,188
12,9022,670
40,286167
40,453
(782)
-
(782)
(62)
(844)
Annual Report and Accounts 2010v7.qxp:Full and Final Accounts 2004 rev 1.5.qxd 24/11/10 10:39 Page 25
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)(CONTINUED)FOR THE YEAR ENDED 31 MARCH 2010
Net movement in funds (brought forward
from page 25)
Fund balances brought forward at
1 April 2009
Fund balances carried forward at
31 March 2010
Notes
Unrestrictedfunds
£'000
(1,309)
10,360
9,051
Restrictedfunds
£'000
(26)
568
542
Total2010
£'000
(1,335)
10,928
9,593
Total 2009
£'000
(844)
11,772
10,928
Included in unrestricted funds are £983,000 of incoming resources and £479,000 of resources
expended arising from the charity’s subsidiary undertakings (note 6).
Included in restricted funds are endowment funds brought forward of £17,000 and carried forward of
£18,000 (note 20).
Net outgoing resources shown on page 29 represent the deficit of the company for the year.
The group’s incoming resources and resources expended all relate to continuing operations.
The group has no recognised gains and losses other than those shown above.
The notes on pages 29 to 49 form part of these financial statements.
26
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CONSOLIDATED AND CHARITY BALANCE SHEETSFOR THE YEAR ENDED 31 MARCH 2010
FIXED ASSETS
Tangible assets
Investments
CURRENT ASSETS
Stock
Debtors
Cash at bank and in hand
CREDITORS - Amounts falling due
within one year
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted funds:
General
Designated
Restricted funds
Notes
14
15
16
17
18
19
20
2010
£'000
2,720
935
3,655
397
2,396
7,890
10,683
(4,745)
5,938
9,593
6,107
2,944
9,051
542
9,593
2009£'000
2,976662
3,638
4162,9469,332
12,694
(5,404)
7,290
10,928
7,2973,063
10,360568
10,928
2010
£'000
2,720
935
3,655
388
2,311
7,858
10,557
(4,619)
5,938
9,593
6,107
2,944
9,051
542
9,593
2009£'000
2,976662
3,638
4032,9079,241
12,551
(5,261)
7,290
10,928
7,2973,063
10,360568
10,928
The financial statements were approved and authorised for issue by the Board of Trustees on 14
September 2010 and signed on its behalf by
Elizabeth Marlow
Honorary Treasurer
The notes on pages 29 to 49 form part of these financial statements.
Group Charity
27
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CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2010
Net cash (outflow) from operating activities
Returns on investments and servicing of finance:
Interest received
Net cash inflow from returns on investments and
servicing of finance
Capital expenditure:
Purchase of tangible fixed assets
Purchase of investments
Proceeds from sale of tangible fixed assets
Net cash (outflow) from capital expenditure
Net cash (outflow)/inflow before financing
(Decrease)/Increase in cash in the year
Notes
24(a)
24(b)
2010
£’000
49
(124)
(250)
3
2010
£'000
(1,120)
49
(371)
(1,442)
(1,442)
2009
£'000
431
(274)-3
2009
£'000
(99)
431
(271)
61
61
The notes on pages 29 to 49 form part of these financial statements.
28
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NOTES TO THE ACCOUNTSFOR THE YEAR ENDED 31 MARCH 2010
1. ACCOUNTING POLICIES
(a) Basis of preparation of the accounts
The accounts have been prepared in accordance with the Companies Act 2006, the
Statement of Recommended Practice 2005 (SORP 2005) Accounting and Reportingby Charities and applicable accounting standards.
The charity consists of a national centre, four divisions and 102 sub-committees.
These accounts set out the results and financial position of the national organisation
as a whole for the year ended 31 March 2010 and have been prepared under the
historical cost convention, as modified by the revaluation of the property and
investments. Surpluses or deficits arising on transactions between the national
centre, divisions and sub-committees are eliminated on consolidation and all income
and expenditure figures relate to external transactions only. Results from all 66
accounting centre sub-committees have been consolidated as part of these
accounts.
The accounts include those of the charity’s subsidiary companies, Pre-school
Learning Alliance Trading Limited and Pre-school Learning Alliance Inspection
Services Limited, which have been consolidated on a line-by-line basis. In
accordance with the provisions of the 2005 SORP an entity Statement of Financial
Activities has not been prepared as the separate results for the charity can be
clearly identified. The deficit for the parent undertaking alone amounted to
£1,839,000. Incoming resources for the parent undertaking alone amounted to
£39,214,000.
The legal ownership of the freehold property occupied by the charity vests in the
Pre-school Learning Alliance Property Trust Corporation (formerly Pre-school
Playgroups Association Property Trust Corporation), a nominee company limited by
guarantee.
Prior-year expenditure comparatives have been changed to reflect the revised
allocation of support costs that has been adopted from 2010. This provides a clearer
comparison between years but does not affect the prior year net movement in funds.
(b) Recognition of income and expenditure
All income and expenditure has been recognised on the accruals basis except
donated items and facilities which are, in as much as they are material and
29
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NOTES TO THE ACCOUNTS (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2010
quantifiable, recognised as income when receivable, based on their estimated
value to the charity.
Grants received are recognised when the conditions for receipt have been met.
Where grants are restricted to future accounting periods, they are deferred and
recognised in those future accounting periods. Grants for immediate financial
support and assistance, or to reimburse costs previously incurred, are recognised
immediately.
(c) Tangible fixed assets
Tangible fixed assets are stated at cost including any incidental expenses of
acquisition. All assets costing more than £500 are capitalised.
Depreciation is calculated to write off the cost of fixed assets on a straight-line
basis over their estimated useful lives. No depreciation is charged in the year of
acquisition. The principal estimated useful lives for this purpose are:
Freehold buildings 50 years
Demountable buildings 15 years
Fixtures and fittings 4 years
Computer equipment 3 years
(d) Investments
Investments held as fixed assets are stated at their mid-market value at the
balance sheet date.
(e) Stocks
Stocks are stated at the lower of cost and net realisable value.
(f) Funds
(i) Unrestricted general funds are those funds available for the general
purposes of the charity. The Trustees consider that core grants received
should be treated as unrestricted as their funding terms reflect the primary
objects of the charity.
(ii) Designated funds are funds transferred from the unrestricted fund for
particular purposes or projects at the discretion of the Trustees.
30
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NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
(iii) Restricted funds are funds subject to specific conditions imposed by the
donor and are binding on the Trustees. Those funds, which are
fundamental to the running of the charity, are disclosed separately on the
face of the Statement of Financial Activities.
(g) Cost allocation
Costs are allocated to their functional categories on the following bases.
(i) Learning and quality improvement costs comprise staff costs, course costs
and attributable overheads based on staff time.
(ii) Provision of early years services costs comprise staff costs, premises
costs, resources and attributable overheads based on staff time.
(iii) Outreach services comprise staff costs, resources and attributable
overheads based on staff time.
(iv) Early years development work and project costs include staff costs and
resources and attributable staff costs and overheads based on staff time.
(v) Membership and campaigning costs include conference costs, printing and
distribution costs, helpline costs, public relations costs and attributable
staff costs and overheads based on staff time.
(vi) Governance costs include the direct costs of committee meetings, audit
fees and legal advice.
To the extent that VAT is irrecoverable the cost is included with the item of expense
to which it relates.
(h) Pension costs
Contributions payable to the charity’s defined contribution pension scheme are
charged to the Statement of Financial Activities in the period to which they relate.
(i) Grants payable
Grants awarded to institutions are recognised in the year in which the grant is
formally approved and communicated in writing to the recipient, provided all
conditions of award have been met.31
Annual Report and Accounts 2010v7.qxp:Full and Final Accounts 2004 rev 1.5.qxd 24/11/10 10:40 Page 31
NOTES TO THE ACCOUNTS (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2010
(j) Taxation
No taxation is payable due to the charitable status of the organisation. No
deferred tax needs to be provided as there are no tax timing differences.
(k) Operating leases
Operating lease costs are written off as incurred.
32
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NOTES TO THE ACCOUNTS (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2010
2. LEARNING AND QUALITY IMPROVEMENT
Learning and Skills Council
European Social Fund
Local Education Authorities
Student fees
Children’s Workforce Development Council
Council for Awards in Children’s Care and Education
Other funding
3. PROVISION OF CHILDCARE SERVICES
Neighbourhood nursery & children’s centre childcare
places funding
National Lotteries Board Big Lottery Fund
Sure Start
Local Education Authorities
Early Years funding
Other local funding
Nursery education funding
Fee income
2010
£’000
1,207
11
446
355
-
118
209
2,346
2009£’0001,388
8940837487
105232
2,683
2010
£’000
1,006
2
1,255
817
521
538
4,293
9,601
18,033
2009£’000
1,38486
1,2931,016
391384
3,7209,469
17,743
33
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NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
4. OUTREACH SERVICES FOR CHILDREN AND FAMILIES
Department for Education
National Lotteries Board Big Lottery Fund
Sure Start
Local Education Authorities
Early Years funding
Home Office
Other funding
5. BUSINESS AND DEVELOPMENT WORK FOR EARLY YEARS SETTINGS
Department for Education
National Lotteries Board Big Lottery Fund
Objective 1 funding (Barnsley)
Sure Start
Local Education Authorities
Early Years funding
Social services
Other local funding
Services to pre-schools
2010
£’000
-
152
1,053
2,003
611
123
234
4,176
2009£’000
93198605834325111119
2,285
34
2010
£’000
1,439
106
-
861
3,240
5,307
209
126
1,071
12,359
2009£’0001,236
2767
8853,8964,983
154517888
12,842
Annual Report and Accounts 2010v7.qxp:Full and Final Accounts 2004 rev 1.5.qxd 24/11/10 10:40 Page 34
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
6. INCOME FROM TRADING SUBSIDIARIES
The charity has two wholly-owned trading subsidiaries, Pre-school Learning
Alliance Trading Limited (PLAT), formerly Pre-school Playgroups Limited, and Pre-
school Learning Alliance Inspection Services Limited (PLAIS), both of which are
registered in England and Wales. The charity has a holding of 7 ordinary shares of
£1 each in PLAT (company number 2417619) and 2 ordinary shares of £1 each in
PLAIS (company number 3251853).
PLAT obtains sponsorship and other financial support for the charity and gift aids
all its taxable profits to the charity. A summary of its trading results is shown
below. PLAIS is dormant. As at 31 March 2010, the charity owed PLAT £156,000
(2009 – the charity owed PLAT £100,000).
Profit and Loss Accounts
Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit
Gift aid payment
Retained in subsidiary
Balance sheets
Total assets
Total liabilities
PLAIS
2010
£'000
-
-
-
-
-
-
-
-
-
-
Total
2010
£’000
983
(19)
964
(460)
504
(504)
-
307
(282)
25
Total2009£’000
975(30)
945
(430)
515(515)
-
269(244)
25
PLAT
2010
£’000
983
(19)
964
(460)
504
(504)
-
307
(282)
25
35
Annual Report and Accounts 2010v7.qxp:Full and Final Accounts 2004 rev 1.5.qxd 24/11/10 10:40 Page 35
NO
TES
TO T
HE
AC
CO
UN
TS (C
ON
TIN
UED
)FO
R T
HE
YEA
R E
ND
ED 3
1 M
AR
CH
201
0
l
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s
13
Sta
ff c
osts
(note
10)
£'0
00
2,3
59
15,2
83
2,4
84
8,8
64
774 -
29,7
64
Gra
nts
£'0
00
46 - -
1,1
03 - -
1,1
49
Pre
mis
ies,
depre
cia
tion
and I
T
£'0
00
313
1,4
55
385
891
282 -
3,3
26
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er
£'0
00 6
2,9
85
1,6
10
1,1
79
1,4
35
101
7,3
16
Tota
l 2010
£'0
00
2,7
24
19,7
23
4,4
79
12,0
37
2,4
91
101
41,5
55
Tota
l 200
9(r
esta
ted)
£'00
0
3,20
419
,322
2,18
812
,902
2,67
016
7
40,4
53
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ing a
nd q
ualit
y im
pro
vem
ent
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vis
ion o
f child
care
serv
ices
Outr
each s
erv
ices f
or
child
ren a
nd f
am
ilies
Busin
ess a
nd d
evelo
pm
ent w
ork
for
early y
ears
settin
gs
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serv
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nd c
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g
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osts
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oth
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re £
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urc
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ut-of-pock
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SIS
OF
RE
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CE
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36
Annual Report and Accounts 2010v7.qxp:Full and Final Accounts 2004 rev 1.5.qxd 24/11/10 10:40 Page 36
Learn
ing a
nd
qualit
y
impro
vem
ent
£'0
00
402
75
45
225
36
783
Pro
vis
ion o
f
child
care
serv
ices
£'0
00
1,5
33
130
220
594
87
2,5
64
Outreach
serv
ices
for ch
ildre
n a
nd
fam
ilies
£'0
00
831
54
104
408
45
1,4
42
Busi
ness
and
deve
lopm
ent w
ork
for
early
years
setti
ngs
£'0
00
1,8
71
160
288
859
126
3,3
04
Mem
bers
hip
and
cam
paig
nin
g
£'0
00
211
24
60
297
43
635
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ance
costs
£'0
00 - - - - - -
Basis
of
allo
cation
Sta
ff tim
e
Sta
ff tim
e
Sta
ff tim
e
Sta
ff tim
e
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axable
incom
e
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l
2007
£'0
00
5,0
08
746
635
2,0
85
636
9,1
10
Div
isio
nal m
anagem
ent
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an
ce f
unction
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an r
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es f
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IT a
nd p
rem
ises
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ble
VA
T
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tal
9.
AL
LO
CA
TIO
N O
F S
UP
PO
RT
CO
ST
S
NO
TES
TO T
HE
AC
CO
UN
TS (C
ON
TIN
UED
) FO
R T
HE
YEA
R E
ND
ED 3
1 M
AR
CH
201
0
Activitie
s
undert
aken
directly
£'0
00
1,8
95
17,1
59
3,0
37
7,6
30
1,8
56
101
31,6
78
Gra
nt
fundin
g
of
activitie
s
£'0
00
46 - -
1,1
03 - -
1,1
49
Support
costs
£'0
00
783
2,5
64
1,4
42
3,3
04
635 -
8,7
28
Tota
l 200
9(r
esta
ted)
£'00
0
3,20
419
,322
2,18
812
,902
2,67
016
7
40,4
53
Tota
l
2010
£'0
00
2,7
24
19,7
23
4,4
79
12,0
37
2,4
91
101
41,5
55
Learn
ing a
nd q
ualit
y im
pro
vem
ent
Pro
vis
ion o
f child
care
serv
ices
Outr
each s
erv
ices f
or
child
ren a
nd f
am
ilies
Busin
ess a
nd d
evelo
pm
ent
work
for
early y
ears
settin
gs
Mem
bers
hip
and c
am
paig
nin
g
Gove
rnance c
osts
8.
BR
EA
KD
OW
N O
F C
OS
T O
F C
HA
RIT
AB
LE
A
CT
IVIT
Y
37
Tota
l
2010
£'0
00
4,8
48
443
717
2,3
83
337
8,7
28
Annual Report and Accounts 2010v7.qxp:Full and Final Accounts 2004 rev 1.5.qxd 24/11/10 10:40 Page 37
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
10. STAFF COSTS
Total staff costs comprised:
Wages and salaries (including social security costs)
Pension contributions
The charity operates a money purchase pension scheme. The assets of the
scheme are held separately from those of the charity in an independently
administered fund. The pension cost charge represents contributions payable by
the charity to the fund.
The average number of employees during the year, calculated on a full-time
equivalent basis and analysed by activity, was:
Learning and quality improvement
Provision of childcare services
Outreach services for children and families
Business and development work for early years settings
Membership services and campaigning
Operational support
The number of employees who received emoluments greater
than £60,000 in the following ranges were:
£60,001 - £69,999
£70,001 - £79,999
£80,001 - £89,999
£90,001 - £99,99938
2010
Number
100
950
98
344
14
105
1,611
2009Number
9893989
35014
106
1,596
2010
Number
-
2
2
1
2010
£’000
29,501
263
29,764
2009£’000
28,495427
28,922
2009Number
4-1-
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NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
Pension contributions of £15,842 (2009: £15,468) were made by the charity in
respect of these higher paid employees.
The charity participates in an insurance policy which protects the charity from loss
arising from the neglect or default of its Trustees and employees by indemnifying
the charitable funds against the consequences of such neglect or default. The
cost to the charity of this insurance for the year was £6,359 (2009 – £6,359).
11. TRUSTEES' REMUNERATION AND EXPENSES
No remuneration was paid directly or indirectly out of the funds of the charity to
any trustee or to any person or persons known to be connected with any of them.
During the year, 10 (2009 – 10) of the charity’s Trustees received a total of
£10,355 (2009 – £10,742) for reimbursement of travel and subsistence costs.
12. GRANTS PAYABLE
Grants payable comprised:
Staff costs
Subsidised places
Sustainability and resources
Expansion
Other awards to pre-schools
Awards to individuals
Allocated support costs
39
2010
£’000
843
59
122
-
79
46
1,149
310
1,459
2009£’000
63342
208298738
1,037
285
1,322
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NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
159 grants totalling £46,000 were awarded to individuals during the year. 117 grants to
institutions over £1,000 were awarded. The 20 largest of these grants exceeded £5,000
and are listed below:
£'000
Sydenham Pre-school, Sydenham Staff costs & sustainability 54
Newstead Pre-school, Lee Staff costs & sustainability 52
Rodett St Mary's Pre-school, Ladywell Staff costs & sustainability 47
St Georges Pre-school, Catford Staff costs & sustainability 46
Del Pre-school, Catford Staff costs & sustainability 42
St Bartholmew's Pre-school, Sydenham Staff costs & sustainability 40
Burnt Ash Pre-school, Grove Park Staff costs & sustainability 35
Marvels Lane Pre-school, Grove Park Staff costs & sustainability 24
Dalton Pre-school, Downham Staff costs & sustainability 23
Rodett Lee Pre-school, Lewisham Staff costs & sustainability 22
Ireland Wood Children’s Centre, Leeds Staff costs 18
Headingley Holiday Activities Club, Leeds Staff costs 17
Aireborough Summer Activities, Leeds Staff costs 14
SKINS Holiday Activities, Leeds Staff costs 11
Inside Outside Childcare, Leeds Staff costs 9
Emma's Angels, Leeds Staff costs 9
Rodett St Mary's, Ladywell Sustainability 7
The Meadows Pre-school, Leeds Staff costs 6
Primley Park Alwoodley Children's Centre Staff costs 6
Champions Out of School Club Staff costs 6
40
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13. GOVERNANCE COSTS
Trustee expenses
Audit fees - audit services
Audit fees - other services
Legal fees
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
2010
£’000
34
36
-
31
101
2009£’000
31312
103
167
41
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42
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
Group and charity
Cost or book value
At 1 April 2009
Additions
Disposals
Reclassification
At 31 March 2010
Accumulated depreciation
At 1 April 2009
Charge for the year
Disposals
Reclassification
At 31 March 2010
Net book value
At 31 March 2010
At 31 March 2009
Freehold
land and
buildings
£’000
516
-
-
1
517
33
9
-
(5)
37
480
483
Demount-
able
buildings
£’000
2,799
1
(17)
(1)
2,782
722
190
(17)
5
900
1,882
2,077
Fixtures
and
fittings
£’000
780
62
(14)
29
857
589
100
(14)
(4)
671
186
191
Computer
equipment
£’000
1,301
61
(2)
(29)
1,331
1,076
81
(2)
4
1,159
172
225
Total
£’000
5,396
124
(33)
-
5,487
2,420
380
(33)
-
2,767
2,720
2,976
14. TANGIBLE FIXED ASSETS
All of the tangible fixed assets are principally used for direct charitable purposes.
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NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
15. FIXED ASSET INVESTMENTS
Group and charity
Market value
At 1 April 2009
Purchases
Gain/(loss) on revaluation
At 31 March 2010
Historical cost at 31 March 2010
The charity’s investments are analysed as follows:
Unit trusts (Milton Keynes Fund, note 20)
COIF Charities Fixed Interest Fund
COIF Charities Property Fund
COIF Charities Investment Fund
Accumulation shares
16. STOCK
Publications and resource centre goods
2010
£’000
662
250
23
935
1,021
18
729
92
93
3
935
2009£’000
724-
(62)
662
771
1748882732
662
2010
£’000
388
2009£’000
403
2010
£’000
397
2009£’000
416
Group Charity
43
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44
17. DEBTORS - Due within one year
Trade debtors
Other debtors
Prepayments
Accrued income
18. CREDITORS - Amounts falling due
within one year
Trade creditors
Amounts due to group undertakings
Taxation and social security
Other creditors
Accruals
Deferred income
Total deferred income comprised:
Subscriptions received in advance
Grants and service level agreements
Other sundry deferred income
2010
£’000
314
541
238
1,218
2,311
2009£’000
4901,123
1481,146
2,907
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
1 April2009
£'000
873426280
1,579
Released
during the
year
£'000
(873)
(426)
(280)
(1,579)
Incoming
resources
deferred
£'000
522
553
412
1,487
31 March
2010
£'000
522
553
412
1,487
2010
£’000
314
626
238
1,218
2,396
2009£’000
4901,162
1481,146
2,946
Group Charity
2010
£’000
837
156
522
925
692
1,487
4,619
2009£’000
1,294100643819826
1,579
5,261
2010
£’000
837
-
522
925
974
1,487
4,745
2009£’000
1,294-
643819
1,0691,579
5,404
Group Charity
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19. UNRESTRICTED FUNDS
Incoming resources
Resources expended
Net (outgoing) resources before transfers
Investment gains
Transfers between funds
Transfers from restricted funds
Net (outgoing) resources for the year
Fund balances brought forward at 1 April 2009
Fund balances carried forward at 31 March 2010
The funds of the charity include the following designated funds which have been
set aside out of unrestricted funds by the trustees for specific purposes:
Sub-committee designations
Fixed asset reserve
Sub-committee designations – This represents funds designated for various activities
administered by the sub-committees. All designated funds are expected to be spent within
six to twelve months of the year end.
Fixed asset reserve – This represents the value of reserves attributable to tangible fixed
assets and has been set up to assist in identifying those funds that are not free funds.
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
General Fund
£'000
38,374
(39,352)
(978)
22
(256)
22
(1,190)
7,297
6,107
Designated
Funds
£'000
-
(375)
(375)
-
256
-
(119)
3,063
2,944
Total
Unrestricted
Funds
£'000
38,374
(39,727)
(1,353)
22
-
22
(1,309)
10,360
9,051
Funds
spent
£'000
(29)
(346)
(375)
Transfers
between
funds
£'000
166
90
256
Balance at
31 March
2010
£'000
224
2,720
2,944
Balance at 1 April 2009
£'000
872,976
3,063
45
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Balance brought
forward at
1 April 2009
£'000
12374106
17338
568
Incoming
resources
and gains
£'000
-
260
-
-
1
1,563
1,824
46
Expenditure
and transfers
£'000
(14)
(279)
(1)
(1)
-
(1,555)
(1,850)
Balance carried
forward at 31
March 2010
£'000
109
55
9
5
18
346
542
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
Pre-school Child Appeal
Big Lottery Fund
Basic Skills Agency
Other small grants
Milton Keynes
Sub-committee funds
Total funds
20. RESTRICTED FUNDS
(a) Purpose of funds
The purpose of each individual fund is as follows:
(i) Pre-school Child Appeal is a national appeal, the proceeds of which are
distributed direct to pre-schools.
(ii) Basic Skills Agency comprises a Jump Start Learning grant to provide
workshops on family learning and an Early Start Learning grant to run
programmes in pre-schools with the aim of improving parents’ and
children’s oral skills.
(iii) Big Lottery Fund comprises four Big Lottery Fund grants for local projects.
These are listed individually in note 20(c).
(iv) Sub-committee funds are grants given to sub-committees to be
administered for pre-schools or to pay for specific projects.
(v) Milton Keynes Fund was donated by the Milton Keynes Community Trust
Limited as an endowed fund to be retained and invested. Income is used
to provide assistance towards the cost of places on pre-school schemes in
the borough of Milton Keynes.
(b) Transfers between funds
The net transfers from restricted funds to unrestricted funds of £22,000 represent
administration charges for the funds
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NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
(c) Big Lottery Fund
Norfolk [RC/1/010232267]
Staffordshire [MK/1/010163693]
Swindon [TR/1/010279940]
London [RC/1/010229363]
In the 2008-9 accounts, we omitted a Big Lottery Fund funded project from note 20(c) of the
accounts. The project was treated as a sub-committee restricted fund but was not listed with
others funded by the Big Lottery Fund. The project was based in Nottingham and the URN
was TR/1/010185311. Income in 2008-9 was £13,000 and expenditure was £13,000.
In the 2008-9 accounts, income of £48,000 was allocated against project URN
ML/2/010147290 rather than the correct URN MK/1/010164610. Both URN’s relate to projects
in Shropshire.
Neither the above items do not affect individual and total Big Lottery Fund balances brought
forward as at 1 April 2009.
21. ANALYSIS OF NET ASSETS BETWEEN FUNDS
Tangible fixed assets
Investments
Current assets
Current liabilities
Income
£'000
99
-
9
152
260
Expenditure
£'000
(104)
(7)
(20)
(148)
(279)
As at
31 March
2010
£'000
13
-
5
37
55
General
fund
£'000
-
917
9,935
(4,745)
6,107
At 1 April
2009
£'000
187
1633
74
Designated
funds
£'000
2,720
-
224
-
2,944
Restricted
Funds
£'000
-
18
524
-
542
Total
2010
£'000
2,720
935
10,683
(4,745)
9,593
Total2009
£'0002,976
66212,694(5,404)
10,928
47
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48
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
22. CONTINGENT LIABILITIES
The charity expects to pay an amount to Bolton Council for premises costs for two
nurseries for 2008 and 2009. The final amount is contingent upon negotiations
between both parties to establish the amount payable.
23. OTHER FINANCIAL COMMITMENTS
Amounts payable over the next twelve months on operating leases:
Land and buildings
Expiry date:
Within 1 year
Between 2 and 5 years
In more than 5 years
Hire of plant and machinery
Expiry date:
Within 1 year
Between 2 and 5 years
In more than 5 years
Prior year amounts payable have been restated to reflect the full set of leases payable at the
end of the 2009 financial year.
2010
£’000
99
250
150
499
5
112
-
117
2009£’000
193124150
467
10878
105
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24. CASH FLOW STATEMENT
(a) Reconciliation of net (outgoing) resources to net cash (outflow) from
operating activities
Net (outgoing) resources
Depreciation charges
(Surplus) on disposal of fixed assets
Interest received
Decrease/(increase) in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash (outflow) from operating activities
(b) Reconciliation of net cashflow to movement in net funds
(Decrease)/increase in cash in the year
(Decrease)/increase in net funds
Net funds at 1 April 2009
Net funds at 31 March 2010
(c) Analysis of changes in net funds
Cash at bank and in hand
2009£’000
(782)399(2)
(431)(56)(86)859
(99)
61
619,271
9,332
2010
£’000
(1,358)
380
(3)
(49)
19
550
(659)
(1,120)
(1,442)
(1,442)
9,332
7,890
NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2010
At 1 April2009
£'000
9,332
Cashflows
£'000
(1,442)
At 31 March
2010
£'000
7,890
49
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Pre-school Learning Alliance
The Fitzpatrick Building
188 York Way
London N7 9AD
T. 020 7697 2500
F. 020 7700 0319
W. www.pre-school.org.uk
© The Pre-school Learning Alliance 2008
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