Charity ragistration numbgr. 1098731 CHILDREN OF WATAMU TRUSTEES, REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 Children of Watamu Contsnt8 Pa Trustees, Report Inde￿ndent Examinerfs Rer Statement of Financial AC1fv￿•S Staltment of Financk91 Position Notes to the Fingwal Stat6m 1￿15 The followlng pages do not fom part ol th8 ststulory acc(wnts: Dètalled Statement of Fln8ncial Athties 1￿17 Chililren of Watamu Trust￿5. Report For Tho Year Endod 31 D•¢omber 2025 The trustees present their re￿rt and th8 financial statemonts for the year ended 31 D￿￿rnber 2025. Oblectlv•s and Actlvlti Alm$ and Obl•¢tfv The Childr8n of Watamu Ch8rity is wislere(J with the Charity Commission for England antj Wales. The home Is also registered as a Chantable Childmn's InslitutK)n ICCI) in the R8publi¢ of Kwya CS No 000573. Charitable Children's Institutions In Kenya are slrictly rngulated undef the Children Act120221 and the Chiklwn ICha¥itable Child￿￿.8 Institutionsl RegulatKJns 2024. Ths regulations to onsure that child welfars pr¢>Jrammes in Kenya are professional and 8¢ts)untsble'. and prloritisè the best interests of the 11 is nol permitted lo règ13ter or operats a CCI except as provbjed in law. The Happy Houso Children's HC￿ was estsblished in Mard) 2010 by Sue and Davi¢J Ha￿ard who were egular visitors in Kenya. They mved from England to live in Kenya fijll time to ensure the smooth running of the home. After Sue Hayward's death in 2021, her husband David Hayward continued to run tho home with th8 support of a leam rg¢Niled Irom the Ic¢al area induding Dir•¢tty RoBe Pendo and Admlni$tralor Evan8 Khamisl who have been Involved wth the home ￿nce it oponod. During the slxt8en y•ars the Pvmio has be•n operational. o sgfo haven has twi provld•d to holp the children rocover from ngglect. atjuse and othèr famity traumas and they have been support9(1 In cJy)linuing thèir education. There 1$ on aver8ge 50 children living in the home at any one time. The home focuws on rgaching out to members of extended famlly. kf known. 8nd rnaintsining Ilnks wlth the local communitl&B. R•ferrals lo the home are recoivad via the Chiklr8n's 0ffi¢o an¢J. once accepted. child is then committ8d to the Happy Houso through Ihe Chiklren's Court for a maximum of thre• yoars. During thal tim• efforts are made lo trace relativ9$. and a fvll assessment of th& family situation 1$ c8rried out by the hom& Sou81 Worker to ensur8 it is safe and appropriatg for a child. Bonds are buill and relationships are strengthened through short vrsils during school breaks, with the airn of reintegration of the child into Ihe community with the 8UPPOrt of the extgndgd famity. If a thild has not been rn88tllgd %Mthin th6 yaar porh)d. 8noth8r apk4katlon Is mad& to th8 court lo ext8nd t committal. Currently the childron are aged baN¥een six months and 18 ye8r8. Once a young person tum8 18, accordlng lo the legislation. they are no longor able lo live in a CCI. As many of the youn9 poop￿ a￿ Still in fvll time education at 18, this has provided a ChaI￿nge lor the Charty. Over the last few yeors, Ihanks to donations from generous 8F<>n8ors, we have been abte to buy o separate pkni ol land no8rby and provide transitional accL*mmod8tllYl 8￿1 8UPPOrt unll lh• young peopl8 comFAeto t￿r educatlon may Indude attendance al cLJllage or unlverstty. Several years ago the Happy House also es18blished 8 fewoying schcd on 8 separats sile nearby whi¢h provides classes from lfj'ndergarten through to the final year of Jun*)r sec￿dary. Mosl ofth8 Happy House children 8ttend this school alongside feeyylng puw"1s from the local community. This furthèr help$ with comrnunity inlograts.on as the chitdren develop friendships and netWOTk5 Outside the home. The sthool fol￿WS the Competency Based Cutticulum and is on8 of the fthv 8chcds in th8 area that provides lessons in Mandarin. 11 also has a Well￿quiPped IT suite. In November 2025, Ihe school hostsd its first graduabon since the establlshment of the Junlor Seojndary divison of the sthLK4. The Development Plan 2025- 2026 had sfftn Key ￿'mS which W￿.. 1. To upda(e the Kenyan Deeds of Trust an¢J othef legal docaJmonlab"M to refl8cI fijll Board memb8rship followng the rocruilmenl of new Trustee5 in 2024. 2. To incwse public awaroness ol the Happy House, retsjihl the sFonsorship base arml attract addibonal funding. 3. To work in an open and transp8rent way. ralsOThJ profile of the Twst Board, man￿M￿nI Taam and the Tole of Its mgmbers. 4. To continuè to IM￿ement the Nati(xwl Care Reform StratO9y Children in Kenya 2022Q032 and work (Josely with the Children'5 Office. ..CONTINUED Page 1 Chlldr•n of Ylatamu Tru$t••s' Report Icontlnuod) For Tho Y•ar Efid￿ 31 D•um￿r 2025 Alms and Objectlves- contlnued 5. To develop and implement 8 colaboralive Behaviour Management PTr)gramm8 betsveen the thool and the home in koeping with the Happy House policy & procedure. 6. To revi8w the implementation of previous Quality Improvement Plans and Rlénbfy argas which require dosor moniloring and a mole rigorous approach for indusion in the 202&2026 Quality Improvement Plan. 7. To monitor Happy H¢yJse School's Development Plan Jan- Dec 2025 Ischool academic yearl and revièw the imF4ementation of previous r9￿Mm0nda￿)nS from the Scho￿ ()Jality Improvgmsnt Plan. As noted, Key 6 was to review the implem8ntsb.on of the previou$ Qualrty Improvement Plans. The Roview was eompleled by Ihe Setrètsry of the Tnjst 808rd and al both the Oevelopmenl Plans and Quality Improvement Plans for 2022-2023, 202>2024 and 2024-2025. This was lo ensurg that aims had b88n met, chang&s wer& applied conwstenlly and improvements were rnaintaingd. 11 resuhed in a Report whic acknowledged all the achievemenis Sbnce 2022 bul also identified area5 for improvemenl which arg dlscussèd later In thls roport. Publ1¢ 8•n•fft Thg rnaln acuvltios of the charlty all work togather to furthor the chadty8 purpo88 for public boneflt The trustee5 confimi th8t they have complied vnlh the requirem•nts of Seciion 17 of the Chariti85 Act 2011 to hav& due regard to the Charlty Commission's guidanc* on public b8n6flt. Achl•v•mont¥ Ind P•rtornian M•ln A¢hl•v•m•nts AJI th& Aims wer8 achi¢ved th18 year Althou9h K¢y￿M 4 wil b• corried forw8rd every yoar as the National Car• Reform Strategy ¢onlSnue8 to b8 ImFAomgnted on an wemental basls until 2032. Kay Alm 1 After many yoars of pursuing re•registra15on and thè submlsslon of the requirod p#pep•￿Tk on s8v8ral OC￿$10n8, we finally reeeived OLtr new Registration in 2025. This Cèrtificate remains valid until March 2028. In the megntime, the Childrgn's Office had conlinu80 to ￿ler children to the home 8nd in f8cI issued a temporary letter of approval unll th8 Certlficalè was issued. We have aL￿ been issued with an updatsd Kenyan Deèds of Tnjsl which correctty rollects the m•mbotship of the Board of TnJ81tss. K•y Alm 2 During 2024 the Chlldren ol Watamu Charity changed its bank account from Santander lo the Charities Aid Foundatlon ICAFI. Many sponsors were lost during the transition b8knn a¢￿untS as stsnding orders warè cancelled bul not set up again for the new account. In the last yearwe hav8 baèn focusing on improving our communication wrth existing and potential skx)nsors and hfjighlening the profile of the charity. Our website. design8d by onè of our Trustees, 15 running vary suc(￿fijIty and has attr8¢led many new visrtor8 from differènt nationalities. We established a d￿lt81 koin system as part of our safeguarding wlicy and Visito￿ are required lo log their details on arrival. This mean5 we are able io follow up wth them afttr ihgir vi8il and develop relationships, which frequendy has resulted in gaining add￿r￿al spwrship and one-off ¢Jonations. We also ran a craft workshop and displayed flyèrs in loral ￿tel$. Wisilors p8KI to pa￿.￿p9t￿ in a worksw wth the children and left with an item they made. thi8 proved very 5ucce3sful an¢J enF)yatAe for am involved, we will organislng further eraft ¥thities. ..CONTJNUED Pagg 2 Chlldron of Walamu Trustees. Report {¢ontlnu8dl For Tho Year End•d 31 D•c•mb•r 2025 Maln Achlgvem•nt• - contonued Other awareness raising aclivilies have taken place in the UK indudlng the lighting up of the Blackpooj Tower In the Happy House (xjlours lo celebrats whal wc¥Jld havtr bggn Mama Sue Hayw8rd'5 tsrthday. This was reinforced by 8 lfve rad￿) intervlew ￿th Papa Dave Hayward on Rad￿ Larwhire. A Chrfstmas car¢4 Sa￿ee perform8d by the Happy House children was livg streamèd on Fa&8book in Decembér. During the summer the partner of of the Trustees And his lriend suc¢essfvlly dimbed Ben Nevis r8t$ing $Sgnificant amount of monoy which will be Ltsed in 2026 to start building a third bungalow on the transitional housng Sitè. KeyAlm 3 The majority of Ihe Trusto88 %th0 ere not basad in Kerya 8Fond hme 8t th8 Happy House ai least once a year. While ther8. they get involv8d in auditing quality $18ndards and ènsuring all Regulations are m•1 8$ well as contribuung to th& running of the Happy House bawj on their speofic skJ"Il sot and expeiionc•. Occaslonally Trustee visits have overl8pFed which has resurted in a very cohesNe Trust Bowd team. The Happy H¢)uso woducos a daHy vldeo bbJ ar4J Incroa&ThJly tho ¢hlldr8n hav8 b8rLJme Inv0fv￿ In rocordlng and editing the videos. In order to increase awareness of the rde of Trustees and awargngss ol Ihe Management Toam, the b￿9S indude videos ol visiting Trustees talknng about what tw ho￿ doing during their vi$il. Th• blog is also usad lo remind spon80rs that they can a￿85 the Annual Report and Accovnts via th8 Chanty Commission ￿b8￿1￿. K•yAlm 4 The National Care Refom) Str81&3y for Chlhjrgn In Kenya 2022-2032 puls an emphasis on the reintegratlon of childr8n Into their communlty and th& Happy Housè knal Wwker work5 c4osely with the Chlldren's Offic8 10 achifjve this. In April 202S we admittod 8 baby girl with no known relatives and She was SU￿t$s1vIlY fostered in September 2025. We have NYO bablo$ at the minute. one of whom has known rd8lives so we are hopeful he will be fostered later this yaar. Unfortunatety th8 child￿￿'S Offic• 1$ only targ6tir*J thildren youngor Ihan 10 year8 old for fost•r caie so It is not an opportunity opon to tyjr older thiklr8n. Thi8 means we h8ve lo find altemalrve fornis of accommodation for young pgoplg SUII In education. We were fortunate ¢0 gel the fundiNd lo build our first supported accornmodalion $8paf8te frorn the Happy Houso three y88rs ag¢, and thls has beon very successful. Support from a Dutch businossman has lad to the development of se￿nd bungalow on the same site, and three girfs ¥MII mov8 in when it is ￿Mpleted in 2026. A thlrd building 11 be st8rtod laler In the year u8lrvJ the funding frcrfn tho Ben Nevis dimb prgviousty referencad. Currently th¥re artr three young men bwng Sup￿rt￿d by Sp￿8015 through fvrth•r ¥duc8tiLM. and they ha moved to other towns closw lo the rel¢vanl colleges. Three young women have movod lo livo with extended f8mily while pursuing college courses. This is proving to be inspiratk)nal for the youngef chikjren who can see that they will be supportod whle ￿Ining relevant qualrftitions. K•y Alm S As the Happy House provkle5 accommo(lallon to many young people in their teens, we have tho usual challenges ihat living wrth adolescents bn.ngs only in greatgf numbers. This has carri8d ovor to Happy H￿$8 School, so onè of our Trustees dgveloped a Behaviour Management Prc¥3ramme and organized a workshop for both Happy House staff and the teachers to explore ways to deal wth th8 behaviour and ensure a consistant collaborative approach. AJI the slaff participated enthusiastically in thtr workshop and behawour has gradually improved. The chiklren are motivated by the awards progrnmme where they are given recrynition lor their effort8 through th8 presentation of c8rtfficales and stafs. ..CONTINUED Page 3 Chlldr•n of Watamu Trustees. Rèport {contlnuedl For The Y￿r Endod 31 DOc￿nbor 2025 Main Achl•v•ments- contlnu•d Koy Alm 6 A Review was (x}m￿81￿￿ of the wnpb8menlation ofthe annual Developmont Pkns and Qualty Improvomenl Plans f¢y 2022-2023. 2023-2024 and 2024- 2025. Adetailed report W8s written which id8ntifigd many of the improvements anrj achievements ovei the ihree years induding the consolidab"¢)n of the Trust Board, th• lurthor development ol the Kids Council. the opening of the first half-way house, Fx)sib"ve audits against the Stand8rds described in The National Standards for Best Practi￿ in Charitable Chiklren's Institutions, the appointment of 8 ngw accountant and development of an Intemal Control dorxjmenl. updaiing th& Poliw & Procedure file and dev&bplng naw P&P8. and the introdu¢ticA) of a new ￿bStte. The Review also idenllfied fvrlh8r areas for developmgnl whère irnpn)vemonts had not beèn consislonlly applled 8nd a detai18d Action Plan was agreed concentrating the rfrRegistration of the Charity in Kenya (now achieved), Health & Safety (now achieved), Record Keeping Imosuy achleved but Exit Planning to ￿ carfed f¢)rward into next year's Developmant Plan) and Human ResoufC*S. During Staff Appraisals sev8r81 staff had requested addition81 training and this w85 larAlitsied through a six week online interactive tNning courne which all the staff enjoyed. K•y Alm 7 Happy House School continugs to produce and roport on thelr separato Development Plan. Tha flrsl gradualion from the Junlor Secondary School ttr)k place in Oclot4r 2025 and it was a very positive experience for 011 the students and familiaslfriends. Seven young pa0￿ from the Happy Pkjuse giaduatod and havo now started ours08 at Senlor Secondary Schools. Flnanel•l R•vl•w Addltlonal Not• CHALLENGES AND RESTRAINTS Consislenl recurring incom6 through St￿801$hip ti)ntinue8 lo be a dwllonp as we continue to rnbulld our sponsorship base. There is inueasing demand on Ihe budget as we support some young people through further educatlon bul we aro fortunate that many sponsors aro wiWiThJ to malntsin thoir Sup￿ for those students aven after Ihey have move(1 into altemative accoMM￿tst￿n. One nèw challange Ihls year IB CAiplry wrth a n6w baby Corebral Palsy. He 18 onty a fow ￿nthS old And requires three hospital vi51ts a week lor spe¢i81i$l medical treatment 8nd physiotherapy. This is draining both financially and also has implicallons for stsffiThJ as a dfiver and House Aunt is required lo accompany hlm. We 8180 need lo consKJer lutUTe accommodation as the Happy House is not desBJn8d with children with physical disability in mlnd so adaptions such as ramps etc may need to be consKlered as the baby grows. As we do not know how extensNe the baby's di88t*ilities will bg. we will hav6 ￿ rrwitor the srtuabon as he grows bul we will do gverything we con to ensure he reaches his full FX)tential. FUTURE PLANS This year we will facilitate the move of three young ww*n to Se￿￿-Ir￿leP6ndanI accommodation and wlll start work on our third transrttonal bungalow. A8 our childrgn grow older we Mll be for￿81n9 on ￿t Planning and ensuring they arg propargd for adulthood. In ordor to maintain standards wè ￿1[ continuo wilh quarterfy quality audlts. vthic* are reported lo the Trust885 al the quartèrly Board hA¢eb"ngS. Page 4 Ch5klr•n of Yl¥tamu Trustees. Rèport (continued) For Th• Y￿r End•d 31 D¢¢emb•r 2025 Structur•, Gtyi•rnance and Management GoY•mlng Docum•nt Board meetings occur on a quart8rty b38is aThJ taka p18¢e usiro Mi¢yosoft Teams as Board m&mbers are basod in Kenya, th9 UK and Dubai. Two weeks prior to a meeting convening. Trustees are provided with a draft agenda plus a Progress Report givlng updates on th8 IMp￿Mentation of the Annual Development Plan and Quality Improvernent Fyan. Stsnding agenda tterrts indude Governance, Finance. Acchlents & Incidents and Population report. Trustees are invited to add additsonal agenda items b8fore the agenda is finalized. The secretsry complatgs the minutes. and these ar8 distributed by ts Director Rose P8ndo for approval wthin a few days of the rneeb'ng taking place. Mèmbership of the Boafd draw8 on a wido rango of Ski￿ and exporferK* as thg backgrouThJ8 of the Tru$tO08 include Edu¢ats'on, Business. trlealth & Swal Care. Community work. Youth work al￿ IT. There hav8 bg&n no changes lo the Board structure in the last year. R•f•r•n¢• and Admlnl•tratlv• D•tal Tru•ts•• Davh1 Hayward- Chalr Philip Marshall Chloe Groves Oawn Heathgr Whlt Si185 Kansa Petgr Reld Grace Dunbar Lewis HAII Cheryl Ridgway Charlty Numb•r 1098731 Prlnclpal Addr•s• 9 Bam Cbs Denchworth Wantagg Oxfordshire OX12 OEZ Ind•p•nd•nt Examln•r David Evans FCA 1 Croft Court. Plurnpton Close Whitehllls Business P8rk Blackpool Lancashire FY4 SPR Pag0 5 Children of Watamu Trustees, Report Icontinugdl For Th• Yèar Ended 31 D•c•mbgr 2025 The trustees. report Was approv&J by Ihe tKJ8rd of trustees and SW on ils behalf by: David Hayward Trustee 0610712026 Pago 6 Children of Walamu Independ•nt ExamSn•rfs Rèport to the Trust••$ of Chlldren of Watamu For Th Yoar End￿ 31 D0￿mber 2025 I report lo the fwslees on my 8xamination of the accthsnts of Chil(Iren of W8tamu (the Twstl for Ihe year ended 31 December 2025. Ro$ponilbllltl•8 and B•8lJ of Report As tho charity truslees of the Twst you are ro8pon8itle for tho preparation of the a¢xounts in accordance with the requirements of the Charibes Act 2011 llho Acr). I report in r98￿Ct of my examination ol th8 Trust's acu)unts Ggrried out undar $8ctlon 14$ of the 2011 Act and In carying out my examination. I have followed the applicable Directions given by the Charity Commission und¥r sectlon 1451511bl ol the Act. Indep•nd•ftt Ex•mln•rf• 8tatsm•nt I havo compl8t&d my 8¥&mination. I conlkni that rK> matsrial matters have come to rny attentlon kn ￿nnectIOn w6th the 8xamlnatlon glving me causo to b8lle¥e Ihat in any mat8n81 rospect.. 1. accoUn￿ng r8cords werè not kept In res￿ of the TN8t as requlred by 8•dlon 130 of thèAct'. or 2. the accounts do not a¢¢ord with those re¢(xds.' or 3. the a￿Unts do not comply wilh the applicat4e requirements concerning the form and Conlonts of accounts set out In the Chari￿0$ (A¢￿Unts and R8PJrtsl RoguLqtion5 2008 othar than ony roqulromenl that the accounts glve a Irue ond fair Y￿. wthich is not 8 matter conswjered as p8rt of an independent examination. I have no concems and have across no other rnattars in connecbon wilh the examination to which atten￿On should be drawn in this report in order to enable a propgr understsnding of ihe accounts to bo reached. David Evans FCA 0610712026 1 Croft CourL Plumplon Ck Vvhitehills BusSness Park BlackF¥301 Lancashire FY4 SPR Page 7 Chlldren of Watamu Stat•m•nt of Flnanclal Activitles For The Year End•d 31 DKomb•r 2025 2025 2024 Vnregtrict•d Unrotstricted funds lunds INCOME AND ENDOWMENTS FROM: Donat￿n$ and legacies Other tradlng aclivits.es Investrnenls 92.457 161,795 1,397 1,896 1,497 93.954 165.088 EXPENDrruRE ON: Rol￿ng fiJnd8 ch8n1a￿e actfvllth.. Other 181,9711 18S,427) 1581 185,4851 181.9711 NET INCOME 11.983 79.603 NET MOVEMENT IN FUNDS RECOP4CILIATION OF FUNDS: Total fun¢Js brought forward TOTAL FUNDS CARRIED FORWARD 11.983 79.603 242,167 162.564 1S 254,150 242,167 The noteB on pag88 10 to 15 fclm part of tw finanpa 8tatèm8nts. Pag& 8 Childrnn of Watafflu Statem•nt of Flnanclal P05itlon AS At 31 D•¢•mt￿r 2025 2025 2024 Unr•strietsd Total fundty funds FIXED ASSETS Tangible Assets 12 155.658 157.070 155.658 157.070 CURRENT ASSETS Debtors Cash al bank and In hand 13 4.549 98.682 4.$47 88,200 103,231 92.747 Cr•dStor•: Amounts Falllng Du• Wlthln On• Y•ar 14 14.739) 17,6501 NET CURRENT ASSETS ILIABILtriES) 98,492 85,097 TOTAL ASSETS LESS CURRENT UABILMES 254,150 242.187 NET ASSETS 254,150 242,167 FUNDS OF THE CHARiri Unrèstricled FurMIB 254.150 242,167 TOTAL FUNDS 15 254.150 242,167 On beh8M of the board David Hayward Twsloe 0610712026 The notes on pages 10 to 15 fom part of th8se ffin•n(x* stat8m8nls. Pago 9 Chlldren of Watamu Nots¥ to the Flnanelal Statsments For Tho Year End•d 31 Decembor 2025 1. G•n•ral Inforniatl¢)n Chlldrgn of Watamu 1$ an un[nLY￿ra1ed charity rfjgistered wrth the Charity Commi&wn. registered charity number 1098731. The prtndpal addr855 is 9 Bam Ck)86. Denchworth, Vlant8ge. Oxtord$hirn, OX12 OEZ. 2. A¢¢ountlng PolScl 2.1. Ba81$ of Pr•parntlon of Fln•n¢l•l St•t•m The financial statements have been prepa￿1 in accordance vAth Chafities SORP IFRS 102)'Accounting and Reporting by Charities.. Statement of Recommondgd Pftctice appIl￿bIg lo charities preparing their accounts in accordance with th8 Financial ReportirwJ Standard ap￿icabl9 in the UK and Republic of Ireland IFRS 1021 lell¢¢tive 1 January 20191". Finanaal Reporting Stsrhdard 102 Tr Finondal Rep)rting Standard 8pplicablg in UK and Republic of Ireland" aThJ Ihe Charities kl 2011. The ¢h8rfty Is a Public Ben•fft Entity as defir)•O by FRS 102. 2.2. In¢omlng R••our¢ Income is rocognlsod when the chartty is leg8lly ents'd8d to It after any performance condiUons havg b￿n mel. the amounts can be measured a￿￿rately. and il is probable that the incoma will be recieved. Cash donotlc¥18 are rocognlsad on receipt. Olhar t1on9ti￿3 are recognts8d on¢0 the ch8rfty has b8en notsfied of the donation unlgss perforrnance Condit￿n$ require deferral of the amount. Income lax recoverable in relat￿ to donallons T￿0v￿d under Gfft Akf or doods of c¢)venanl IB rec(*Jnised at tho fjme of receipt. Legacies are rocognls•d on rèceipt ry 0th8NA88 ff thè thaty has been r￿lIOtt ol an Impèndlng dl$trfbuU¢M. the amount is krKwn, and rocgipl is expected. If the omwnl 18 not knthvTr, ihe legacy is treatad as a contingent asset. 2.3. T•nglbl• Flx•d A•••t• and D•pr•¢l Tangible fixed asso1$ are measured at less 8ctsJmulatad dopreciabon and any ae¢umul8tèd impalrrn8nt losses. Depreeialion is provthd al r8ts5 calculaled to write off the eosl ol the fixed assets.lgss their 9Stlmaled wdual valua. over thelr èypectad usefvl Iwes on the folknylng basa$.' Freehold Leasehold Plant & Mathinery Motor Vehicles Fixtures & Fittlngs Computer Equipment Not depre¢aated 12.5% reduung balanco 12.5% rgduong b8lanc¢ 25% redu¢iThJ balance 12.5% reducing balanco 30% rodwng balanc 2.4. Ca•h and Ca•h Equlwalont• Cash and cash equivalents are basic financial assets and include cash in harKF and de￿SItS held at call with banks, other short-tem) hwJhly liquid invesbments that mabjre in no more than three monlhs from the date of acquisition and arè reodity Convertib￿ to a known arncHJnt of cash insignificanl risk of th8ng8 in value, and bank overdrafts. Page 10 Chlldren of Watamu Notss to th• Flnancial Ststemonts lcontlnuedl For The Yw Ended 31 Do¢•mber 2025 2.5. For•lgn Currencl•$ Monetary assets and liabililies in for￿jn curr8nci8s are tran￿al￿d into stsrting at the rates of exchango ntllng Bl the statsmènt of finanual posibon date. Transaclions In fown currències are translateti 11,2701 110,2331 19141 14351 11,224) 18351 1145) {12.630) 12,296} 6.380 1316) ..CONTINUED Page 16 ChlldrM of Watamu Detalknt Stat•m•nt of Flnanclal A¢tFvitles Icontlnu•dl For The Year End•d 31 Docambw 2025 Indep￿dent examinerfs fee5 ACc￿￿n￿ncY fees 11,4161 1270} (81.971) 185.4271 Oth•r Other expendiiura tyF• A 158) 1581 181,971) 185,4851 NET INCOME 11.983 79.603 Page 17