Company Registration No.. 08418367 (England and Wales) Charity Registration No. 1154822 RAFA KIDZONE LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
RAFA KIDZONE LIMITED REFERENCE AND ADMINISTRATIVE DETAILS YEAR ENDED 31 DECEMBER 2020 Reglsterod charlty number 1154822 {England and Wales) Registered company number 08418367 (England and Wales) OFSTED registered number EY475959 Registered office Atlas House Wembley Road Leicester LE3 1UT England Tru8tee8 N J Bunting OBE R P O'connor K Parkin Princlpal Office 86C & 87 Wellesby Way RAF College Cranwell Sleaford Lincolnshire NG34 8HB Audttor RSM UKAudit LLP Chartered Accounknts st Philips Point Temple Row Bimingham West Midlands B2 SAF Bankors Barclays Barclays Business Park Leicester LE87 2BD
RAFA KIDZONE LIMITED TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2020 The Trustees of RAFA Kidzone Limited Ilhe Charity) present this report and the financial statements of the Charity for the year ended 31 December 2020. The financial slalements have been prepared based on the accounting policies set out in note 2 to the financial statements. Aims and Objects The object of the Charity is lo enhance the development and education of children and provide for their individual needs. This is done by offering inclusive and appropriate play and leaming facilities that meet the needs of all children regardless of family ststus, disability. colour, ethnic origin, religion and belief. Actlvltle8 The Charity provides full and part time childeare for children aged beeen 6 months to 12 years old, between 07..30 - 17.'30 five days a week for 50 weeks a year. The Charity delivers ils see via a nursery. toddler room and preschool rooms where il follows the Early Years Foundation Stage framework. The Charity provides funded early education for 0-, three- and four-year-old children. The Charity also operates as a breakfast, afterschool and holiday club for school age children. The Charity operates on a sile leased from the Ministry of Defence comprising Iwo buildings.. the nursery building which can accommodate up lo 70 children and the wrap-around care building which can accommodate up to 40 children. A¢hievements The Earty Years Foundation Stage Framewort( enables all young children to have access lo an integrated learning and care experience that will ensure they achieve the best outcomes. This is a learning through play curriculum and the Charity provides a range of adult directed and child initiated activities within a rich and enabling environment. In addition, the Charity supports the families of children with a comprehensive parent events program throughout the year. providing a range of activities and events to promote parent partnerships. The Charity provides a fflexible eare setting for local families by providing a wrap-around and holiday club service for school age children. The Charity operates a minibus enabling it lo provide transport to and from the local primary school. Following the Govemment's decision to close schools and nurseries in response to the COVID-19 pandemic, the Charity continued lo operate the nursery for the children of critr'cal workers and supported the national emergency by welcoming children of key worker5 In the locality whose usual nurseTies had closed, including children from RAF Digby. The Charity made appropriate use of the Governmenfs Coronavirus Job Retention Scheme and furloughed a number of i(5 employees to manage the Charity's cost base whilst ensuring employee.. child ratios are mel. Measures were implemented lo ensure that the pMiseS were COVID-secure for children, parents and employees. Occupancy levels have started to increase since September 2020 and the wraparound service is al full ¢apa¢ity. Public benefit Whilst the Charity Primari caters for the children of serving personnel, civil servants and contractors working at RAF Cranwell, its serve$ are available lo families in the wider community as well. In setting fee5. Trustees have considered the Ch8rrty Commission's guidance on charging for services and balanced the need to ensure the long-lerm sustainability of the Charity with the maintenance of affordable high-quality early years and childcare provision. The Charity accepts childcare vouchers and early years ftjnding from the local authority. In drafting the above statements, the Trustees have complied with the duty in the Charities Act 2011. to have due regard to public benefit guidance published by the Charity Commission.
RAFA KIDZONE LIMITED TRUSTEES. REPORT (contlnued) YEAR ENDED 31 DECEMBER 2020 Financial Review In the twelve months lo 31 December 2020, the Charity's income was £670.947 {9 months income lo 31 December 2019 was £449,831). The Charity's expenditure was £617,187 19 months expendiluTe to 31 December 2019 was £461,048). resulting in a surplus of £53,760 Iccxnpared to a 9 months deficit as at 31 December 2019 of £11.2171. The totsl funds of the Charity at the end of the year were £179.055131 December 2019 - £125,295). In May 2020, the assets of Maple Leaf Day Care, a registered charity. were transferred lo the Charity. Maple Leaf Day Care previously operated the nursery al RAF Digby whieh is now opeialed by the Charity's parent company, RAFA Kidz Limited. The assets transferred are restricted lo support activities al FIAFA Kidz Digby. The assets included £107,504 in cash together with all nursery equipment owned by Maple Leaf Day Care. The assets transferred from Maple LeafDay Care do not have a value to the Charity and so have been ineluded al nil value within the financial statements. Reserves pollcy Trustees have reviewed the Reserves Policy and have afFim)ed the designated funds as sel out in note 12, which exist lo ensure that the Charty is able lo refresh and renew the setting from lime to time and lo enable business continuity in the event of unforeseen occurrence. A designated fund of £115,215 has been created to deal with such an unforeseen event and this ensure the setting continues lo be a going concern, and a further £18,000 has been set aside to ensure that essential equipment can be plaCed or maintained as and when required. As at 31 December 2020 total funds are £179,055 of which unrestricted reserves are £61,664 in deficrt. Structure and Governan¢e The Charity is a company limited by guarantee and a registered charity govemed by rts Articles of Asso(#alion. The Charity is registered with the Charity Commission and with Ofsled. The Charity is a wholly ¢)wned subsidiary of RAFA lfjdz Limited. which is a wholly owned subsidiary of the Royal Air Forces Association (registered charity number 226686 and SC037673). The Board of Trustees is colleclivety accountable for the long-term success of the Charrty and Trustees act in accordance with their duties under charity law. Trustees are also company directors and subject lo the directors, dub'es set out in sections 170-177 Companies Act 2006 The Board is responsible for th& Charity's Complian with all relevant legislative and regulatory requirements. It is responsible for detennining the strategy and values of the Charity. ils performance, standards of conduct and corporate governance. The Board reviews the position of the Charity and Teceives reports from the Management Team led by the Manager. The Board is responsible for approving the annual business plan and a range of supporting strategies. The Board believes that good governance is key to the ongoing success of the organisats'on. In terms of maintaining high stsndards of governance and has adopted of the Charity Governance Code lor smaller charities.
RAFA KIDZONE LIMITED TRUSTEES. REPORT (continued) YEAR ENDED 31 DECEMBER 2020 Structure and Governance (continued) Composition of the Board of Trustees The Trustees who seNed in the year lo 31 December 2020 and up to the dale of signature of the financial statements are listed below. R P O'connor N J Bunting OBE A Wilkinson-shar (resigned 19 Mareh 20211 K Parkin was appointed as a trustee on 19 April 2021. All Truslees give their lin voluntsrity and re¢ve no benefits from the Charity. No expenses were reclaimed from the Charity. N. Bunting, R. O'connor, A. Wilkin$on-Sharpe and K Parkin are employees of the Royal Air Forces Association and directors of RAFA Kidz Limited. In accordance with the Charity's Articles of Assctialion, Trustees are appointed by the Charity's sole member, RAFA Kidz Limited. Vvhen recruiting new Trustees appropriate due diligence is carried out to ensure that ndidates have a valid DBS check. are eligible to act as charity trustees and company directors in accordance with the Articles of Association, Charities Act 2011 las amended by Charities {Proleclion and Sc181 Investment} Act 20161 and Companies Act 2006 and are fil and proper persons as defined under the management condition in Finance Act 2010. Each Trustee is provided with a briefing pack and an individual induction Programme is agreed and implemented covering all aspects of the role and the work of the Charity as required. Trustees also recelve ongoing briefings and training from subjecl-matter experts and external advisers in critical areas such as Ofsted regulation. safeguarding. health and safety, data pfolection. risk management and reserves. Rlsk Management The Trustees have overall responsibility for ensuring that the Charity has an appropriate system of controls. financial and otherwise, to provide reasonable assurance that its assets are safeguarded agairbst unaulhorised use or disposal, that proper records are maintained and infomalion is reliable and that Televanl laws and regulations are coMpld with. As a member of the Royal Air Forces Association group, the Charity is subject to the Asso¢iab'on'$ Risk Management Policy and Trustees have reviewed their risk appetite during the year. In lemis of priorities. Trustees have agffted that the need lo avoid repulalional, compliance and eXssiVe financial risk will lake priority over olhei factors. whilst recognising a balanced assessment has lo be taken as, in many cases, there are risk5 attached to both doing something and doing nothing. The risk management prOS sel out in the policy is designed to identify and assess risks and so that appropriate risk management strategies are implemented. and their effectiveness monitored. Trustees have identified the following as ils key risks. Regulatory compliance. Mitigation includes employment of professionally qualified staff and mandatory training. the support of relevant subject matterexperts employed by other group companies and regular reviews of policies.
RAFA KIDZONE LIMITED TRUSTEES. REPORT {¢ontlnuedl YEAR ENDED 31 DECEMBER 2020 Risk Management {¢ontlnued) Long-lerm financial sustainability and short-teTm cash flow failure. Mitigation plans include financial planning and performance monitoring, both in terms of annual budgets and reserves and inveslmenls. Loss of operational capability. Plans include a range of processes lo ensure rocruitmenl and retention of appropriately qualified and trained employees. Plans for the futur& The Trustees are committed to delivering affordable and nurturing early years, chlldcare in a welcoming and safe environment and ensuring the long-temi sustainability of Charity. The Charity is seeking lo consolidate ils financial position by increasing occupancy levels and carefully managing rts expenditure whilst continuing to provide high quality childcare. The Trustees have considered the Charity's performance during 2020 and have reviewed the 2021 full year forecast and the assumptions on which the forecasts were based and are satisfied that the Charity remains a going concern, is financially viable for at least the next twelve months and has a charitable purpose lo meet which it is able to deliver. Trustees. responsibilitie$ in rolation to financial statements The Trustees are responsible for preparing the Trusteès. Report and the financial statements in accordan with applicable law and United Kingdom Accounting Standards (United lfjngdom Generally Accepted Accounting Practice}. Company law requires the Trustees lo prepare financial statements lor each financial period. which give a true and fair view of the Charity and of the incoming resources and application of resources. including the income and expendrture of the Charity for that period. In preparing these financial statements, the Trustee$ are required to.. Select suitable accounting policies and then apply them consistently Observe the methods and principles in the Charities Slatoment of Recommended Practice Make judgments and estimates that are reasonable and ptudenl Stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial stalemenls., and Prepare the financial 51alements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any time the financial position of the Charity and enable them to ensure that the financial slalemenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Association and the group and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware.. There is no relevant audit inforrnation of which the Charity's auditr)r is unaware,. and The Trustees have taken all steps that they ought lo have taken lo make themselves aware of any relevant audit information and to establish that the auditor is aware of that infomalion Thi rep ppro the TTUStees on and signed on its beho]f by.. N J Bunting O Trustee
RAFA KIDZONE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAFA KIDZONE LIMITED Opinion We have audited the financk31 slalements of RAFA Kldzone Llmiled (the 'charilable company'l for the year ended 31 December 2020 which comprise the Statement of Financial Aclivitses, the Balance Sheet, the Statement of Cash Flows and notes to the financial stalemenls, including Significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Ac¢ounling Standards, including FRS 102 °The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally ACpted Accounting PTaclice}. In our opinion the financial slalements: give a true and lair view of the stsle of the charitable company's affairs as at 31 December 2020 and of its incoming res¢xrces and application of resources. including ils income and expenditure, for the year then ended., have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 20C6. Basls for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs IUKII and applicable law. Our responsibilities underthose standards are further deseribed in the Auditorfs responsibilities for the audit of the financial stslements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial slalemenls in the UK, including the FRC'S Ethical Standard and we have fuLfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit ewdence we have ci)tsined is $uffi¢ienl and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the Iruslees, use of the going concern basis of accounting in the preparatn of the financial ststemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the charitable company's ability to continue as a going concern for a year of al least e1Ve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are deSCrid in the relevant sections of this report. Other information The other information comprises the infomiation included in the Trustees, report other than the financial stslements and our audilorfs report Ihereon. The trustees are responsible for the other infom8tion contained within the Trustees, report. Our opinion on the financial slalements does not cover the other information and. except lo the extent otheiSe expliciuy ststed in our report, we do not express any fomi of assurance onclusion thereon. Our responsibility is to read the other infomalion and, in doing so, consider whether the other infomialton is materially inconsistent with the financial slalemenls or our knowledge obtained in the course of the audit or othewise appears tr) be materially misstated. If we identify such material inconsistencies or apparent material mis51alemenls. we are required to detem)ine whether this gives rise lo a material misslalemenl in the financial statements themselves. If, based on the worf( we have performed. we conclude that there is a material misslalemenl of this other information, we are required lo report that fact. We have nothing lo report in this regard.
RAFA KIDZONE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAFA KIDZONE LIMITED {contiDued} Opinions on other matters prescribed by tho Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit. the informab'on given in the Trustees. Report. which includes the DiTeclors' Report prepared for the purposes of company law, for the financial year for which the financial slalements are prepared is consistent with the financial statements.. and the Dire¢lors' Report included within the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misslalements in the Directors. Report included within the Trustees. Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you rf, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us". or the financial statements are not in agreement with the accounting records and returns., OT certain disclosures of trustees. remuneration specrfied by law are not made.. or we have not receNed all the information and explanations we require for our audit.. or the Trustees were not entitled to prepare the financial stslemenls in accordance with the small companies, regime and take advantage of the small companies exemption from the requirement lo prepare a Strategic Report in preparing Ihe Trustees, Report. Rosponsibilitigs of trustees As explained more fully in the Ststement of Trustees. responsibilities Set out on page S, the trustees {who are also the directors of the charitable company for the purposes of company lawl are responsible for the pparatiOn of the financial slalemenls and for being satisfied that they give a true and fair view. and for such internal control a5 the Iruslees determine is necessary to enable the preparation of financial stal$menls that are free from material misslalemenl. whether due to fraud or error. In preparing the financial slalemenls, the trustees are responsible for assessing the charitable company's ability lo continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the Iruslees either intend lo liquidate the charitable company or lo cease operations. or have no realistic alternative bul lo do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the finanelal statements as a whole are free from material misstatement, whether due to fraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audi( conducted in accordan with ISAS IUKI will always detect a material misslalement when il exists. Misslalemenls can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial stalemenls. The extent to whlch the audit via8 ¢on8ldered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objective5 of our audit are lo obtain sufficient appropriate audit evidenee regarding compliance with laws and regulations that have a direct effect on the delerminalion of material amounts and disclosures in the financial slalements, lo perform audit ProdUreS lo help identify InStanS of non-complianee with other laws and regulations that may have a material effect on the financial slalemenls, and lo respond appropriately to identified or suspected non- Complian with laws and regulations identified during the audit.
RAFA KIDZONE LIMrrED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAFA KIDZONE LIMITED {contSnued) In relation lo fraud, the objectives of our audit are lo identify and assess the risk of matgrial misslalement of the financial statements due lo fraud, lo obtain sufficient appropriate audit evidence regarding the assessed risks of material mi5ststemenl due to fraud through designin9 and implementing appropriate responses and to Tespond appropriately lo fraud or suspected fraud identified during the audit. However, il is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entitys operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identrfying and assessing risks of material misslatement in respect of irregularities, including fraud, the audit engagement team.. obtained an understanding of the nature of the sector. including the legal and regulatory framework that the charitable company operates in and how the charitable company is complying with the legal and regulatory framework., inquired of management. and those charged with governance, about their own identification and assessment of the risks of irregularities. including any known actual, suspected or alleged instances of fraud,. discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be su5p11ble to fraud. As a result of these procedures we consider the rTh)st significant laws and regulations that have a direct impact on the financial slalements are FRS 102, Charities SORP IFRS 1021, Companies Act 2006. Charities Act 2011, the charitable company's goveming document, lax legislation and Charities (Protection and Social Investment) Act 2016. We perfomied audit procedures lo delect non-complian$ which may have a material impact on the financial statements which included reviewing Ihg financial statements including the Trustees, Report, remaining alert to new or unusual transactions which may not be in accordan with the governing documents. inspecting correspondence with local tsx authorits'es and evaluating advice received from inlemallextemal advisors. The most significant laws and regulations that have an indirect impact on the financial statements are Keeping Children Safe in Education under section 175 of the Education Act 2002, the Childcare Act 2006 and the UK General Dats Protection Regulation {UK GDPRI. We perfomed audit procedures to inquire of whether the charitable company is in compliance with these law and regulations and inspected correspondence with licensing or regulatory authorities. The audit engagement team identified the risk of management override of controls as the areas where the financial slalements were most susceptible to mal$rial misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation lo signrficant. and unusual transactions and transactions entered into outside the normal course of business. A further description of our responsibilities for the audit of the financial slalements is located on the Financial Reporting Council's website al htt ..Ilwww.fr¢.o .uklauditorsres onsibilities. This description fomis part of our audilorfs report.
RAFA KIDZONE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAFA KIDZONE LIMITED (continuèd> Use of our report This report is made solely to the charitable company's members, as a body, in accordanee wth Chapter 3 of Part 16 of the Companv&s Act 2006. Our audit work has been undertaken so that we might slate lo the charitable company's members those matters we are required to slate to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not ap1 or assume responsibility to anyone other than the charitable company and the charitable company's members as a body. for our audit work, for this report. or for the opinions we have formed. [1S LLe Keith Ward (Senior Ststulory Audilorl For and on behalf of RSM UK AUDIT LLP, Slalulory ALidilor Chartered Accountants Sl Philips Point Temple Row Birmingham West Midlands B2 SAF Dalg 21st September 2021
RAFA KIDZONE LIMITED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020 Year Period ended ended 31 Dec•mber31 Dg¢•mbgr 2020 2019 Total Total Unrestricted Funds Rgstricted Funds Notes INCOME FROM Donations 107,504 107,504 10 Charitable activities Fees Grants Miscellaneous 381,379 181,104 882 381,379 181.104 882 367,415 78,633 3,039 Activities for fund ralsing 343 Investment income 78 78 391 TOTAL 563,443 107,504 670,947 449,831 EXPENDITURE ON Raising funds Charitable activities (2431 1617,18n 1460.8051 {617.1871 TOTAL {617,1871 1617,18n 1461,0481 NET INCOMEIIEXPENDITUREI 153.7441 107.504 S3,760 111.2171 NET MOVEMENT IN FUNDS (53.7441 107.504 53,760 111,2171 Reconciliation of funds Total funds balanS brought forward 125,295 125.295 136.512 Total funds balances carried forward 71.551 107,504 179,055 125.295 All amun15 relate to continuing operations. -10-
RAFA KIDZONE LIMITED BALANCE SHEET AT 31 DECEMBER 2020 2020 2019 FIXED ASSETS Tangible fixed assets 3,635 4.846 CURRENT ASSETS Debtors Cash al bank and in hand 10 54,926 149,328 2,952 155,934 204,254 158,886 CREDoRs Amounts falling due within one year {28,8341 138,4371 NEf CURRENT ASSETS 175,420 120.449 TOTAL ASSETS LESS CURRENT LIABILITIES 179,055 125,295 FUNDS Restricted funds Unrestricted funds: Designated General 107,504 12 133,215 161,6641 133,215 17,9201 TOTAL FUNDS 179,055 125,295 Approved by the Trustees and signed on their behalf on P qc I N J Bunting OBE Trustee
RAFA KIDZONE LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 Year ended 31 December 2020 Perlod ended 31 December 2019 Cash flows from operating activitles: Net cash used In operatlng actlvitios 16,684} 115,473} Cash flows from investing activities,. Interest received Purchase of fixed assets 78 391 14,8461 Not Cash froml(vsed inl investing activities 78 14.4551 Change in cash and cash equivalents in the year Cash and cash equivalents al the beginning of the year 16,6061 155,934 119,928) 175,862 Cash and Cash equivalents al the end of the year 149,328 155.934 Reconciliatlon of net movements In funds to net cashflow from operatlng activities Ygar ended 31 December 2020 Period ended 31 December 2019 Net movement in fund8 for the ieportlng porlod Adjustments for.. Interest received Depreciation on tangible fixed assets Increase in debtors Decrease in creditors 53.760 111,2171 1781 1,211 {51,9741 19.6031 13911 1172) 13,6931 Net cash used in operating activities 16,6841 115.4731 Analysls of cash and cash equlvalents Year ended 31 December 2020 Pèriod ended 31 Decembor 2019 Cash in hand Bank accounts 141 149,187 685 155,249 Totsl Cash and cash aquivalents 149,328 155.934 -12-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expeclalion5 of future events that are believed to be reasonable under the circumstances. There are no Critical accounting eslimates and areas ofjudgement to note. PRINCIPAL ACCOUNTING POLICIES General infomiation RAFA Kidzone Limited is an incorporated private company {registered number 08418367} and a registered charity al the Charity Commission Icharily registrats'on no. 1154822} in England and Wales. The charity is a company limited by guarantee. The address of the charity's registered office is Atlas House, Wembley Road, Leicester LE3 1 UT. The nature of the charity's activities are sel out in the Trustees Report. Basls of preparation The financial statements have been prepared under the historical ¢o$t convention and in aecordance with applicable United Kingdom Accounting Standards. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Re¢ommended Practice applicable to charities preparing their accoun15 in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 1021, the Financial Reporting Standard applicable in the United Kingdom and Republic or Ireland induding the adoption of the amendments issued in December 2017 IFRS1021, the CharitiesAct 2011 and the requirements of the Companies Act 2006 and UK Generally Accepted Accounting Praclico as il appltes from 1 April 2015. RAFA Kidzone Limtted meets the definition of a public benefit enlily under FRS 102 and has therefore applied the relevant public benefit requirements of FRS 102. Monetary amounts in the finanaal statements are rounded lo the nearest £1. The financial ststemenls are presented in sterling which is also the fundional currency of the Charity. Going concorn Based on the company's forecasts, the Direclorg have adopted the going concem basis in preparing the Financial Statements. The Directors have made this assessment after consideration of the company's cashflows and related assumptions and in accordance with the Guidance published by the UK Financial Reporting Council. In 8sse5sing the going Concern the Directors have given careful consideration lo the F)olential impact of the COVID-19 pandemic on the cashflows and liquidity over the next 12-month period. DesP51e income forecasts reducing against our pre-COVID-19 targets, measures we have taken lo reduce costs allow u$ lo offset the impact of COVID-19. The Companys accounts and cashflow forecasts lake all the above factors into account and indicate that the Company will have sufficient funds lo operate as a going concern for the foreseeable future. Reporting period The current financial slalemenls are for the year ended 31 December 2020. The comparative financial statements are for the period from 1 April 2019 to 31 December 2019. As the current and prior periods are different lengths. the comparative figures are not entirely comparable. -13-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 PRINCIPAL ACCOUNTING POLICIES {continuedl Fund a¢counting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the objectives of the Charity and which have not been designated for other purposes. Designated funds are unrestricted funds that have been set aside by the Trustees for particular purposes. These funds are reviewed annually. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. Expenditu is Charged to the statement of Financial Activities when incurred. Income All income is included in the Slalement of Financial Activities when the charity has enlillemenl to the funds. any perfomiance conditions allached to the income have been met, it is probable that the income will be received, and the amount can be measured reliably. The followng specific policies are applied lo partieular categories of income. Income in the fomi of donations is included when receivable. Fundraising income is included in incom& in the period in which the Chartty becomes entitled lo receipt. Investment income is included when CeIvable. Income from charitabk activities including grants receivable is included in income in the perKJd in which the charity becomes entitled lo receipt. Government grants ale reeognised al the fair value of the asset received or receivabte when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies perf0rrnan conditions is recognisd in income when the perfomiance condition$ are met. Where a grant does not specify perfomance condition$ il is recognised in income when the proceeds aro received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. Expendlture All expenditure is aOUnted for on an accruals basis as a liability is incurred or when the Charity is deemed lo have a Ial or Conslruclive obligation which will result in a probable transfer of economic benefits. Expenditure has been classified under headings that aggregate all costs related lo the category. Expendfture includes irrecoverable VAT. Costs of raising funds inclLKle fundraising trading costs. These costs are regarded as necessary to generale funds that are needed to finance charitsble activit$. Charftable activities expenditure enables the Charty to meet its charitable aims and objecllves and include both direct and support costs relating to the activity. Support costs have en allocated to c05t of raising funds and charitable activities on the most appropriate basis. Tangible fixed assets It is RAFA Kidzone Limited policy that all items either purchased by or donated to RAFA Kidzone Limited for use within the childcare sessions shall not be capitalised due lo the heavy use and Unusual high wear and lear expected within such an environment. These items shall be treated as irnrrEdiate expenditure with no depreciation. The capitalisation limit for all other items is sel al £500. -14-
IiAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2020 PRINCIPAL ACCOUNTING POLICIES (continued} Tangible fixed assots {continued} Tangible fixed assets are Initial recorded al cost and subsequently measure al st or valuation net of depreciation and any impairment loss. Depreciation is provided for on all tsngle fixed assets at rates calculated lo write each asset down to its estimated value evenly over ts expected useful economic lives as follows.. Office equipment Furniture & fixtures 25OA straight line 25Qh straight line Impairment reviews are carried outwhere there are indicalions that recoverable amounts offixed assets are below their carrying values. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impaimienl losses in the Slalement of Financial Activities. Donatlons of good and services Kidzone reiVed donated goods and services during the year which has enabled il to operate at the present scale. These donations are not valued in the accounts. Flnancial instruments The Charity has elected to apply the provisions of Section 11 'Basic Financial Instrumenls. and Section 12 '0ther Financial Instruments Issues, of FRS 102. in full, lo all of ils financial instruments. Financial assets and financial liabilities are recognised when the Charty becomes a paty to the conlraclual provisions of the instrument and are oftset only when the Charity currently has a legally enforceable right to set off the recognised amounts and intends either to sellle on a net basis. or to realise the asset and settle the liability simultaneously. Financial assets Trade debtors Trade debtors. which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and are subsequently mgasured at amortised cost, being the transaction price less any amounts sellled and any impairment losses. A PTovision for impairment of trade deblofs is established when there is objective evidence that the amounts due will not be collected according lo the original terms of Ihe contract. Impaimienl losses are recognised in profil or loss for the excess of the carrying value of the trade debtor overthe present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impaimient loss that objectively relate to an event occurring after the impaimient bss was recognised, are recognised immediatety in the Statement of Financial Acttvilies. Financial IlabSlltle$ and equlty Financial instruments are classified as liabilities and equity instruments according lo the substance of the contractual arrangements entered into. An equity instrument is any contrad that evidences a residual interest in the assets of the Charity after deducting all of its liabilities. Trade and other credltors and accruals Trade and other creditor5 lincluding accrualsl payable within one year that do not constf(ute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2020 PRINCIPAL ACCOUNTING POLICIES l¢ontinued} Dèrecognition of financial assets and liabilitie8 Al financial asset is derecognised only when the contractual rights lo cash flow5 expire or are settled, or substantially all the risk5 and rewards of ownership are transferred to another party, or rf some significant risks and rewards of ownership are retained but control of the asset has transferred lo another paty that is able to sell the asset in f(s entirety to an unrelated third party. A financial liability {or part thereof) is derecognised when the obligation specrfied in the contract is discharged, cancelled Of expires. Retirement banefits For defined contribution schemes the amount charged to the Statement of Financial Activities is the contribution payable in the yeaT. Difference between contributions payable in the year and contributions aclualty paid are shown as either accruals or pre prepayments. GRANTS Yoar ended Period ended 31 Decombgr 31 D9¢ember 2020 2019 Total Total Local authority UK Government coronavirus jc*) relenlv)n scheme Welfare 113,354 67,714 36 78,633 181,104 78,633 All grant inccffie is unrestricted in the current year and prior period. ACTIVITIES FOR FUNDRAISING Year ended Period ended 31 December 31 Decembor 2020 2019 Total Total Incom Summer gathering Christmas market 83 260 343 All income from raising funds was unrestricted in the prior period. -16-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 RAISING FUNDS Year ended Period ended 31 December 31 December 2020 2019 Total Total Ex en(Jiture'. Summer gather¢ng Christmas market 70 173 243 All expenditure for raising funds was unrestricted in the prior peflod. CHARITABLE ACTIVITIES Year ended Period ended 31 December 31 December 2020 2019 Total Total Employee & rglated costs Depreciation Other costs Direct costs Allocated support Costs 381,620 109.034 27,8S6 97,426 409.516 207,671 343.344 117,461 1,211 490,654 1.211 125.322 617,187 460,805 Audrt fees for the period ended 31 December 2019 and for the year ended 31 December 2020 have been paid by the ultimate parent undertaking, The Royal Air Force Association. Allocated support ¢osts 2020 2019 Other site costs Advertising and promotion Printing and slalionery Insurance Repairs Depreciation Management fee Other expenditure Staff costs Governance costs 14.124 3,314 1.193 2.245 2,609 1,211 52,689 21.2S2 109,034 7.613 66 1,320 3,812 877 17,315 84,928 1,530 207,671 117,461 -17-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 STAFF COSTS Year endedPeriod end9d 31 De¢ember31 December 2020 2019 Total staff costs for the charity comprised.. Gross salaries Employerfs National Insurance Employerfs pension 454.324 28.492 7,838 360,146 19,323 6.592 490.654 386,061 The average number of staff employed by the charity during the year ended 31 December 2020 was 35 (period ended 31 Dember 2019- 351. All key management personnel are paid through the parent charity and disclosed in their financial stalemenls. No employees was paid £60,000 or moTe in the current year or prior period. TRUSTEES REMUNERATION No remuneration or expenses were paid lo the Tnjstees during the year and prior period. Professional indemnity insurance lo cover the Trustees was paid by the charity during the year. TANGIBLE FIXED ASSETS Fixtures & Fittings Equlpmant Total Cost At 1 January 2020 and 31 December 2020 12,670 7.836 20,506 Doprociat5on At 1 January 2020 Charge for the year 12,670 2,990 1,211 15,660 1,211 At 31 Dember 2020 12.670 4,201 16.871 Net book value At 31 December 2020 3,635 3.635 At 31 December 2019 4,846 4,846 10. DEBTORS 2020 2019 Trade debtors Other debtors Amounts owed from group undertakings Prepayments 606 185 54,741 2,346 54.926 2.952 -18-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 11. CREDITORS 2020 2019 Amounts falling due within one year Trade creditors Accruals Other laxalion and soclal security Other creditors 1,203 2,521 13,935 4,258 17,723 4.517 23,114 28,834 38,437 Included within other creditors are pension contributions payable of £3,164 {2019= £1,472). 12. ANALYSIS OF FUNDS Balance at 1 January 2020 Balance at Transfer 31 December Funds 2020 Income Expendlture Re$tri¢ted funds: Digby Nursery fund 107,504 107,504 Unrestricted funds: Designated funds: Business continuity roserv8 While goods reseNg Project reserve IT reserve Decoratson reseNe 115.215 4,000 10,000 2,000 2,000 115.215 4,000 10.000 2,000 2,000 133,215 17,920) 133,215 161,6841 General reserve 563,443 1617,1871 125,295 563,443 {617,1871 71.551 Totsl 125,295 670,947 {617.1871 179,055 Restricted funds This reslricled fund is to enable the future development of Digby Nursery. Designated funds The Trustees have established a number of degignaled funds desigrbed lo ensure that the selling can continue to provide a high quality and modern service whilst al the same lime being able lo continue lo operate and provide an essential childcare service during a period of difficulty, created by either internal or external factors. To this end a Business Continuity Reserve of £115,215 has been created together with other reserves of £18,000 to cover the cost of either replacing or maintsining essential equipment andlor furnishings. -19-
RAFA KIDZONE LIMtTED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2020 13. ANALYSIS OF NET ASSETS BETWEEN FUNDS Current year Unrestrlcted funds Restricted funds Total Tangible fixed assets Current assets Current liabilities 3,635 96,750 128,8341 3.635 204.254 {28,8341 107,504 Total ngt assots 71,551 107.504 179.055 Prior year Unrestricted funds Restricted funds Total Tangible fixed assets Current assets Current liabilities 4.846 158.886 {38,4371 4,846 158,886 138,437) Total net assets 125,295 125.295 14. RELATED PARTY TRANSACTIONS During the year the Charity made purchases of £22.834 {period ended 31 December 2019 .. £nil) from. and paid management fees of £52.689 (period ended 31 December 2019.. £nill to RAFA Kidz Limited, the immediate parent undertaking. Al the year end the Charity was owed £54,74112019'. £nil} by RAFA Kidz Limited. During the year the Charity made purchases of £411 Iperiod ended 31 December 2019 = £nill from Rafatrad Limited, a company owned by the ultimate parent undertaking, The Royal Air Forces Association. 15. PARENT COMPANY RAFA Kidzone Limited is a wholly owned subsidiary of PAFA lfjdz Limited (Company number 11927027. registered in England and Wales). This is the Charity's immediate parent undertaking. The registered office is the same as ils ultimate parent undertaking. The principal activity of RAFA Kidz Limited is that of running a children's nursery. RAFA Kidz Lirnited is a wholly owned subsidiary of The Royal Air Forces Association, a charity registered in England and Wales Iregistratson number 2266861 and Scotland (registered number SC0376731. Purpose of Association is to promote the welfare by charitable means of all serving and former members of the Air Forces. This is the Charity's ultimate parent undertaking. The Charity is only included in the consolidated accounts of The Royal Air Force Association. Their accounts are available from the registered office being Atlas House. Wembley Road. Leitsster LE3 1UT England. -20-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 16. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 DECEMBER 2019 Unrestrfcted funds Restricted fund8 Total 2019 INCOME FROM Donations 10 10 CHARITABLE ACTIVITIES Fees Grants Miscellaneous 367,415 367.415 78.633 3.039 78.633 3,039 Activitigs for fundraising 343 343 Investment income 391 391 TOTAL 371.198 78.633 449,831 EXPENDITURE ON Raising funds Charitable activities 12431 1322,1501 12431 1460,805} 1138.6551 TOTAL 1322,3931 {60,022} 1461,0481 Net Sn¢omellexpenditure) Transfers between funds 48,805 160,0221 160,0221 60,022 {11.2171 Net movement in fund$ 111.2171 111,2171 -21-