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 be￿een 6 months to 12 years old, between
07..30 - 17.'30 five days a week for 50 weeks a year. The Charity delivers ils se￿￿e 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 p￿MiseS 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 serv￿e$ 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$on-Sharpe and K Parkin are employees of the Royal Air
Forces Association and directors of RAFA Kidz Limited.
In accordance with the Charity's Articles of Assctialion, Trustees are appointed by the Charity's sole member,
RAFA Kidz Limited. Vvhen recruiting new Trustees appropriate due diligence is carried out to ensure that
ndidates have a valid DBS check. are eligible to act as charity trustees and company directors in accordance
with the Articles of Association, Charities Act 2011 las amended by Charities {Proleclion and Sc￿181
Investment} Act 20161 and Companies Act 2006 and are fil and proper persons as defined under the
management condition in Finance Act 2010.
Each Trustee is provided with a briefing pack and an individual induction Programme is agreed and
implemented covering all aspects of the role and the work of the Charity as required. Trustees also recelve
ongoing briefings and training from subjecl-matter experts and external advisers in critical areas such as
Ofsted regulation. safeguarding. health and safety, data pfolection. risk management and reserves.
Rlsk Management
The Trustees have overall responsibility for ensuring that the Charity has an appropriate system of controls.
financial and otherwise, to provide reasonable assurance that its assets are safeguarded agairbst unaulhorised
use or disposal, that proper records are maintained and infomalion is reliable and that Televanl laws and
regulations are coMpl￿d with.
As a member of the Royal Air Forces Association group, the Charity is subject to the Asso¢iab'on'$ 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 eX￿ssiVe 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 prO￿S 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 AC￿pted 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 preparat￿n 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 deSCri￿d 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 othe￿iSe 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
p￿paratiOn 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
Pro￿dUreS lo help identify InStan￿S 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 su5￿p11ble 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 a￿p1 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 balan￿S 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
CRED￿oRs
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 a￿OUnted for on an accruals basis as a liability is incurred or when the Charity is
deemed lo have a I￿al 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 re￿iVed 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 De￿mber 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 De￿mber 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-