Ch8rlty registration number: 1105598 Happy Days Childcare Annual Report and Financial Statements forthe Year Ended 31 August 2023 Alan Thompson 3The Hoo Kempston Bedford MK42 7DQ 11Page Happy Days Chlidcare Contents Referenee and Administrative Detsiis Trustses. R8POrt 4-5 St8tem8nt of Tru8tee8' Responslbllltles Independent Examiner's Report Statement of Financi81 ￿￿vItIeS 8818nce Sheet Notes to the Flnanclal St8t8ment8 10-18 21Page Happy Chlidcare Reference and Admlnlstrntlv• Detslis Mr Andy Richards Miss Holley Miller Mrs Rebecc8 Birdsaii Secrntary Miss Holley Mi118r Prlnclpal Offlco Ecton Brook Children's Centre Ecton Brook Road Ecton Brook North8mpton NN3 5DY Charlty Reg18tr8tlon Numb•r Bankers Lloytss Bank G6or88 Row Northampton Independ¢nt Examlner Alan Thompson 3TheHoo Kempston MK42 7DQ 31Page Happy Days Chlldcare Trustees, Report Thetrustees presèntthe annual report together wlth the ff nanclal ststomants ol the charlty fortheyeaf ended 31 August 2023. Structure. govern•￿¢ •nd manaq•m•nt Flnon¢lal In8trum•nts ObJ•ctfv•J andpollel•* The charSty'8 8Ctlvltl88 expo$e it io a number of flnanclal rlsk8 Includlng crodit rl$k. cash flow risk and Ilquldbty r18k. The u80 of flnan¢lal def6vative818 gov8rn8d bythe ch8rllY8 pollcles approved by the board of trustgos. which provlde written principle¥ on tho use of financ181 derlvatfvos to manage the88 ri8k8. The ch8rlty doè8 not u89 derlvatlv8 flnanclal In￿r￿MentS tor spe¢ul8t+ve purposes. C•¥h flowrlsk The chaTItyS oCtfvltl88 exp088 It prlm8rltyto the financlal Tlsk3 of ch8nge8 In forelgn currency exchange rat88 8nd interest r8tg¥. The oh8rlty uses forelgn exchange forw8rd contract$ and interest rate swap ¢ontr8C18to hedge the88 exp08uie8. Iniorost boailng a888t8 and ilablllt188 are held 8t fixed rate to en8ur8 certalnty of ¢8sh fiow8. Cr•dttrt*k The charlty's prln¢lpal fin•ncio1888et8 are bank balances and ¢a$h. trode an¢J other roceiv•bles, ond Inve8tmènt8. Th¢ ¢horfjty'B credlt r18k18 prSmarlly 8ttrlbut8blè to It8 trsde recelvobltr$. Tho amounts presented In th8 b818nca $heet ore net of 8IIow8nce8 for doubtful r6celv8bl88. An allowance for Impalrmeni Is mada where there Is an Idenllfled1088 event whlch, b88ed on prevlous experlence.18 evldence of a roductlon In th¢ reGLworabi1Sty ol the cash flow?. The credli r18k on liquld fund8 8nd derlv8tlve fln8ncl81 In8trument¥ Is Ilmlted because the counierp8rt188 are bank8 wfth hlgh credlt.r8iln88 a8slgn8d by Intgrn8tlon81 credlt-rallng 8￿ne1&s. The Gharlty h88 no 81gnlficant concentratlon of credll r18k. wlth exposure sproad oN*r a18rge number of Counterpart1￿ and ¢u$tom¢rs. Llquldltyrl•k In orderio malntsin Ilquldltyto en8uro that 8ufficlent lund8 are 8valLablo for ongolng operatlon8 and luture development8, the charlty uses a mlxlure of long-tem and Short-term dobt Ilnan¢e. Further detolLs regardlng Ilquldlty rf8k can be found In th8 Stalement of 8ccountlng pollcl08 In the ilnanclal 8t8tem&nt$. The annual report W88 8pprr 2022 is shown in not813. 81Page Happy Days Chlidcar• {Registratlon numbor 1105598) Baianco Sheot as at 31 August 2023 2023 2022 Curr•nt aM•t8 Cash at bank8nd In hand 35.170 70,338 Crodltorn: Amount• f•lUnidu• wlthln ono year Net as88t8 Fund8 of th• charlty. Unrestrlct•d Incom• fund• UnrestTiCted funds Total lund8 13 28.972 &4.0 Thè fln8nei81 statemants on pages 10 to 18 w￿re approved by the trusta88, and authorlsed for 18sue on 27 March2024 and signed ontheirbehalf by: Holley Mlller Trustee Rebecca Blrdsall Tru8t88 91Page Happy Days Chlidcare Noteg to the Flnan¢l8l Ststements for tho Year Ended 31 August 2023 1 A¢countlnq poU¢lo• Ststem•ntof compll•nc• The flnanci81 statements have been prepared In éccordancewith Accountlng and Reporting by Ch8riile8: Statement ot Recommended Practice applicable to charitles preparlngtheir accounts In accordance with the Financi81 Reporting *8ndard applic8bie in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2015}- ICharlt18s SORP IFRS 10211. the Fin8n¢ial ReportingStand8rd applicable In the UK8nd Republic of Ireland IFRS 102) and the Charities Act 2011. Bas1• of prnpor8tlon Hoppy Days Childcare meetstho definttion of 8 publlc b¢nefit entity under FRS 102. Assets ond liablliti8s gre Initially recognlsed 8t historical cost ortr8nsaGtion value unless otherwise stated in the relevant 8ccountin8 poli￿ notes. Ex•mptlon from P￿￿rIng a ¢aJhfi¢>w st•t•m•nt The ¢harSty Opted to early adopt Bulletin 1 publlshed on 2 February 20168nd h8ve therefore not In¢ludgd cash fl¢)w 8t8tement inthe5e financi81 statements. Golni concorn The trustees considerthatthare are no materiol unc8rtaintles aboutthe charlty's abilityto continu8 08 8 going concern. Income ond •ndofft•nts Voluntary income including donations. gifts. lggacies and gr8ntsthat provide core lundingor ar8 of a general nature is recognised when the charity hos entitlement tothe income, It is prob8blo thai the Income WIU be Tè¢8lv¢d and th¢ 8mount can be measured with Sufiicient reli8biUty. Gr•nts rec•l￿bLo Granis ar8 recognlsed whenthe charity has 8n 8ntltlementto the funds and anycon¢Jltions linked to the gr8nts h8Vo been met. Where performance condliions are attached to the grant and ore yetto be met. the InGome18 Tecognlsed 8s a Ilability and included on the balance sheet as deferred income to b8 released. Inv•stm•nt Incoma Dividends are recognised oncethe dividend has been dec18red and notiticatlon has been received of the dlvldend due. Expondlture All expenditure Is re¢ognised onc8lhere18 a ￿881 or construdive obligatlontothat exp8nditUfe. it is probable settlemont is required and the amount can b6 m88sured reliably. Ali ¢ost3 8re allocated to the 8ppllcablo expendlture headingthat 8ggreg8te simi18r costs toth8t C8tegory. Where costs Cannot b8 directly 8ttributed to particuL8r headings they hav8 been allocated on a basis consistont with the use of resources. with centralstaff costs allocated oftthe basis of tlme 8pent. and depreciation charges allocated on thè portlon of the as¥etts use. Other support cost8 are 8Uocoted b880d on the spre8d of siaff C08ts. 10IPage Happy Days Chlidcaro Notos to the Flnanclal Ststements for the Year Ended 31 August 2023 R•l#lngfvnds These are costs Incurred In ottractingvoiuntaryln¢ome. the managementof Investments 8nd tho$8 incurred In tradlng8CtMtiesthat r8i8e funds. G¢)wTnanca costs The80 include the costs attributable to ihe charity8 ¢ompilanc¢ wfth constMutiono1 and statutory requirem9nts. including audit. stratowc man8gement and trustees'¥ meetlngs and reimbur$ed oxpensos. Government grants Government grants are recognised b888d on tha aGcnJ81 model and are measured at the f8irvèlue of the asset received or reCe[￿ble. Grants are classlfiad os relating oitherto revenue orto assets. Grant8 relatingto revenu8 8re recognised in Income overthe period in whichthe fei8ted Costs are recognised. Grants r81atingto assets are recognlsed overthe expected useful Ilfe of the osset. Whore pert of a grant relatingto an 8sset is defarred. it is recognlsed as deferred incom& Taxotlon The ch8rity18 ¢onsldefed to P888lhe tests set out in P8ragraph 1 Schedule 6of the Finan¢8 knt 2010 and therefore it meets the defIn￿lon of a charit8ble compony for UKcorpor8tion tax purposes. Accordingly. the charlty 18 POtent1811y ￿eMptfrOM taxation in respect of income or capr(al g8ins recelved withln C8te8ori88 cover8d by Ch8Pter 3 Pan 11 of the Corporntion T8xAct 2010 or Saction 256 ofthe Taxation of Charggable G8ins Acl 1992, to the extent that such Income or galns are applled exclusively to ch8rlt8ble purpos88. ash and eqU￿le￿ty C8sh 8nd ¢ash equivalents ￿MPrISe ¢ash on h8nd 8nd call deposits. and other short-term highly liquld Investm8nts that ore r86dlly convertible to a known amount of ca8h ond ore subjectto an insignrficant risk of change in value. Trad• crndltor• are obligations to pay for goods or servicesthat have been acquired in the ordlnary course of business from suppliers. Accounts payable are ci88sified ès current 118billtlg$ If the does not have 8n unconditional right. atthe end ofthe reporting perlod. to defer settiemeni of the creditorfor at least ￿1ve months 8ftef the reporting dthe. If there Is an uncondftional right to defer settlemeni fof 8t le88ttWel￿ months aftef the reportlngd8te. tw are presented as non-current li8billtles. ore r8cognised Inftially at thè tr8ns8Ction price 8nd subsequentty measured at amortised cost uslngthe effective interest method. 111Page Happy Days Chlidcare Notes to tho Flnanclal Statements for the Year Ended 31 August 2023 Intere8t-b8aring borrowings 8re inlilally recorded 8tfalrv81u8. net of tran88¢tlon cosis. Interest-beafing borrowings are subsequently carried at amortisad c¢)st. with the difference between the proceed& net of transoctlon costs. and the amount du8 on redemption belng recogn188d 8s a chargelothe Statement ot Fin8nci81Activities overthe p¢rl¢xl of the relevant borrowln& Interest exp8nse18 f8cogn18ed on the basls of the effectlve intsfe8t method 8nd18 included in interest P8y8blo and simllar ch8rd88. Borrowing5 are cl8ssffled 88 ¢UTT8nt liablliti¢8 unl885 the charity has an unconditional rightto defor settlement of tha liobilityfor at1885t Thvelve months afterthe reportingdate. Fund Structurè Unrestricted income funds are 88netalfundsthat 8re mllablefor use atthe tru8toes'$ discretlon In furtherance of the oblerfive¥ of the ch8rty. Flnan¢l8l Instrurn•nts CI•sslflcatlon Fln8ncio18sseis and fin8ncl8l li8blllties are recognised when the charity beGomeg a p8rtyto the contfactual provislons of the instrument. Financi81 liabilities ond equity instrum8ntS 8re ciasslfied 8ccordingto the substance of the contractual arrangements entered An equity instrument 18 any coniractthot evidences 8 fesidual inierest in ihe 88sets of the charfty after deducting all of it8 liabilities. Recognltlon Jndme•sur•ment Allfinancial assets and Ilabilities are Inltl8Lly m8asuT8d attf8ns8Ctlon price lincludingtransaction costs). exceptforthos8 financial assets classified as atfair v81ue through profit or loss. which are initlally measured attsir v8lu8 Iwhich 1$ normally th8 transaction price excludingtransacilon costs), unless the arrangement constitutes a finonclngtransadion. If an 8rrong8ment constitutes 8 flnan¢ingtransactlon. the flnanci81 asset orfln8nclal Ilability is me88ured atthe presentV8lu8 of th8 future p8yments discounted 8t 8 market rate of interestfor 8 similar debt instrument. Finan¢i8l 8S8etS and Ilabilitios are only offset In thg Statement of fin8nci81 position when. Ond only wh8n there exlsts a legally enforce8bie rightto sèi off the recognised amounts and the ch8rity intend8 either to settle on a net b88i3, orto realise the 888et8nd 8ettie the liabllity simultaneously. Flnancial assets are derecognisad when and onlywhen al the Gontractu81 rightsto the cash flowsfrom thofinanclal 888¢t expire or are Settled, bl the charity tr8nsfers to another p8rty subst8nt1811y all of the Tisks and reward5 of ownershlp of the financiÈl asset. or c}the ch8Tity, despite having retalned some. but not all. significant rlsks and rewards of ownershlp, hastransferred contfolof the 8ssot io another party. Financial liabllltie$ are der8cogn18ed onlyvth8n the obllg8tion specitied in the contract 1$ disch8rg8d. cancelled or explres. 121Page Happy Days Chlidcaro Notos to tha Flnanclal Ststemonts fof tho Year Ended 31 August 2023 Debt instrumentswhlch meetthe foll￿n8 conditson$ are sub8equenty mgosured at amortised cost u$lngthe 8ffective interest method: lal The contractual return to the holder is r) 8 fixed amount: [Ili a Positive fixed r8te or 8 posIt￿*V8r1abI8 rate: or liiil 8 combination of a positi¥E or 8 neg8tNe Ilxed rats and O PQSitNe variable rate. Ibl The contr8Ct may pr(Mdefor repayments of the principal orthe reDJm to the holder Ibut not t)othl to be linked to o single relevant obsep48bLe indexof genernl price inllation of tho cutrency in vthich the debt instwment is dgnominated. prcmded such ￿nkS are not ithwraged. Icl The contr8Ct may providefor a detefminable Yariation of the return tothe holder duringthe lite of lfie instrument. provided that lil the new r*e sotisfies condltlon lal and thevari8tlon18 not contingent on future events Oth8rthan11} a chang8 of a contractualv8rl8bLe rnte:121 to prot8Ctthe t￿Ider against credlt deterioration ofthe issuer.131 chanys in levies applied tya central bankor arisingfrom changa8 In relevant 18xation or Iw. or lill the naw r8t8 08 8 market roteof inteTest8nd s8tlsfigs¢ondition lal. Idl There is no contrnctual prtyrysion that could. tyltsterms. re¥￿t inthe h(thr tOsin8lhe prlncip81 8mount or any Interest 8tlrlbuiabi8toth8 cuffent p8rl(Kl or prior p8ric#J& (¢1 ContractU8l pr(wisionsth• pemih Ihe t8SU8rto prepaya debt instnjment or pem)itthe hoiderto pth it bockto thè issuer before m8turtyare contingerrt on fuiure events. otherthanto protect the holder againstthe credi( deterioration of the issueror a change in comrol of the issuer. orto protect the hoLder or issuer ag8inst changes in levies applied tya c6ntrnl bankor arisingfrom ch8nges in r6lev8nttaxation or law. If) ContractU81 prcNisions may permftthe extension of theterm of debt instrufnenL prowdgj thatthe return tothe holdèr 8n¢J 8ny othorcontractuat prcwi8ions appkncabie duringthe extended term satisfythe conditions of parngr8ph8 lal to {c). Debt instfuments that are classified os payable ¢x recervalAewithin oneyaaron initlal recognition and which meet the 8boNB conditions are measured atthe undiscounted amount of the c88h or other considerntion expected to be paid or recei¥Td. rnt of Impaim8nL Vr the Year Endod 31 August 2023 DorlV&tl￿fln0ncl￿l In•trum•nt• The charlty uses dèrivative financial instruments to reduce exposure to foreign exchange rlsk and interèst rate movement& The charity does not hold or issue derivatrrfe financial instruments for sp8eu18tlve purposes. Derivatlves are Inltlally recognlgad at f8ir value 8t the dats a derrrfatiV8 contr8Ct1s 8nter8d into 8nd are subsequently reme85ured to their f8irv81ue at 88¢h reporting date. The resultlnB galn or loss is recognised in statement of financial 8Cttviues Immediately unless the derNative 18 de8ignated and effect￿￿ as a hedging instrument. in which 8%*nt the timin8 of the recognitlon Sn statement offinancial actr4ities depends on the nature of the hedge relatlonshlp. F•lr value m•asurnm•nt Tha best evidence of fair v81ue is a quoted price for an identical asset in an active market. Vlhen quoted prices are un8V8iiable, the prlce of a recenttransaction for an Identical asset provides evldence of lalr value as Long 88 there h88 not been a Significant Change in economlc clrcumst8ncés or 8 significant Lapse of time since the transaction took place. If the market is not active and recent transactions of an identbcal asset on their own are not a good estimate of fail value, the tsir velue is estimated ty using a valuotion technique. 2 Incom• from don•tlon• •nd l•p¢l•• unr••tr1￿•d Fund• Total 2022 Gr8nts, Includlng capttal grants: Gov8rnm8nt grants 3 Inv••tm•nt Incom• Funds Total Tot•l 2022 Interest récelvable and simliar Income: Interest recelvable on bank deposits Happy Days Chlidcare 141Page Notes to the Flnanclal Statsmonts forthe Year Ended 31 August 2023 4 Other Incom• Unrnstrlctsd Funds Total 2023 Totsl 2022 General 5 Expendltur• on ral$lngfvnd$ a) C08ts of tradlng Ktlvltlo• Unrestrlcted Fund¥ Total Gonoral 2023 Total 2022 Costs of goods sold Other direct costs of 8Ctlvltles for gener8ting funds 7.322 7.322 21.353 6 An8lysls of govemance and •upport cogts Governanco cost8 Unrestrlctod Fund8 Totsl 2023 Total 2022 G•n•ral Other governance costs 7 Not Incomlngioutgolng ro•Ou￿8 Net outgolng résources for the year include: 151Page Happy Days Chlldcarn Notes to th• Flnanclal Ststsmonts fortho Year Ended 31 August 2022 8 Tru•t•e• r•mun•ratlon and exp•n8•• 9 Staff co•ts The aggre8at6 payroll costs were 88 foliowg: Staff c08t• durlngth• y•arw•re: 2023 2022 Wages and 8alarle8 No employee recelved emoluments of more than £60.000 durlngthe year 10 Indopend•nt •xamln•r'• r•mun•ratlon 2023 2022 Oth•r f••• to •xamln•r• The ex8mlnlng of accounts of any as8oc18te of the ch8rlty 161Page Happy Days ChIld￿r Notes to the Hn8nclal Statamenti forthe Year Ended 31 August 2023 11 Taxatlon The charity18 a registsred charity and 18 thèrefore exemptfrom taxation. 12 Creditors: amounts felling due within one year 2023 Trade cr8dltor8 Other t8X8tlon and socia 18ecurlty Other credltors 1,325 4,873 1,104 5,183 13 Fund• Boiane• at 1 S•pt•mb•r 2022 Balanc• at 31 Auqu•t 2023 In¢omlng R••ourc•• •xp•nd•d Unr••trlct•d fund• G&neral ats721 lanc• at 1 S•pt•mb•r Incomlni 2021 r••ourc•• Balanc• at 31 Auqu•t 2022 R•8ourco• •xpend•d Unr••trlct•d lund• G8neral 7.1.31.91. J]fj&6461 aZO.9.11 14 Analy918 of net 8388t8 betr*veen fund8 UnM•trlct lunda O•n•ral Totalfund8 Current 88gets 35,170 35,170 Current118bllltles Tot81 net a888t8 171P8ge Happy Da￿ Chlldcare Notes to tho Flnanclal St•tsments for tho Ye•r Ended 31 August 2023 15 Anatysls of n•t fund• At1 At 31 Auw•t 2023 Cash fiow Cash at bank and in hand Net debt 181Page