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

Annual Report and Accounts 2010v7.qxp:Full and Final Accounts 2004 rev 1.5.qxd 24/11/10 10:39

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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

5


6

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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8

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


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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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



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


17


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.

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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

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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.

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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)



creo

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:



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)


creo

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


creo

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


Group Charity

27


creo

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


28


creo

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


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


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



(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



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


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


creo


4. OUTREACH SERVICES FOR CHILDREN AND FAMILIES

Department for Education


Sure Start


Early Years funding

Home Office

Other funding

5. BUSINESS AND DEVELOPMENT WORK FOR EARLY YEARS SETTINGS

Department for Education


Objective 1 funding (Barnsley)

Sure Start


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


creo


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


creo

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

Note

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

Oth

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

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 w

ork

for

early y

ears

settin

gs

Mem

bers

hip

serv

ices a

nd c

am

paig

nin

g

Gove

rnance c

osts

TO

TA

L

Incl

uded in

oth

er

reso

urc

es

exp

ended a

re £

1,8

31,0

00 c

hild

care

and o

utreach

reso

urc

es,

£774,0

00 o

ut-of-pock

et exp

ense

s and £

337,

000

irre

cove

rable

VA

T.

7.

AN

ALY

SIS

OF

RE

SO

UR

CE

S E

XP

EN

DE

D

36


creo

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

Govern

ance

costs

£'0

00 - - - - - -

Basis

of

allo

cation

Sta

ff tim

e

Sta

ff tim

e

Sta

ff tim

e

Sta

ff tim

e

Non-t

axable

incom

e

Tota

l

2007

£'0

00

5,0

08

746

635

2,0

85

636

9,1

10

Div

isio

nal m

anagem

ent

Fin

an

ce f

unction

Hum

an r

esourc

es f

unction

IT a

nd p

rem

ises

Irre

covera

ble

VA

T

To

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


creo


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:



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-


creo


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


creo


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


13. GOVERNANCE COSTS

Trustee expenses

Audit fees - audit services

Audit fees - other services

Legal fees


2010

£’000

34

36

-

31

101

2009£’000

31312

103

167

41


creo

42


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.



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


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.


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


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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(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


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


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

E. [email protected]

W. www.pre-school.org.uk

© The Pre-school Learning Alliance 2008


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pre-school learning alliance trustees’ annual report and

Documents