Company RistIatIOn No: 084183671England and Wales) Charlty Regi5tratiofi No. 1154822 RAFA KIDZONE LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 AKIW4C9 271W2024 CIYIPANIES HOUSE
RAFA KIDZONE LIMITED REFERENCE AND ADMINISTRATIVE DETAILS YEAR ENDED 31 DECEMBER 2023 Reglstered charlty number 1154822 (England and Wales) Reglstered <ompany number 08418367 (England ar)d Wales) Re8istered office Atla5 House Wembley Road Leicester England LE3 IUT Trus¢ees R Huxford MBE R Brutnall P Sherwin (appointed l March 20241 Secretary R Brutnall Principal oifKe Atlas House Wernbley Road Leicester LE3 IUT AudStor UHY Hacker Young Chartered Accountants 14 Park Row Nottingham NG16GR Bankers Bardays Bardays Business Park Leicester LE87 2BD Investment Managers Rothschild & Co New Court St Swithin's Lane London EC4N 8AL
RAFA KIDZONE LIMITED TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2023 The frustees of PAFA KzOne kn"miied (the Chaiityl present this report and the finantial ststernents of the Charity for the period ended 31 Oecember 2023. The finan¢i¥l siatements have been prepared based on the accounting policies set out in note 2 to the financial statements. A5ms and Oblects The object of the Charity is to enhaTr ihe development and education of children and provide for their individual needs. Thrs is done by offering indusive and appropriate play and leamin8 facilities that meet the needs of all children regardless of family Status. disability, colour, ethnic or¥in, religion or belief. Acii¥ities The Charity meets it object by the holding and investing funds for the benefrt of children attending the nursery settin8s at specific station5 to benefit RAF personnel. The Charity donated £203.074 to nurseries its Restricted and Desi8nated Funds during the year to fund improvements at the nursery settings. Public benefit Whilst the Charity has in the past provided childcarè for the children of 5er¥in8 personnel, uvil servants and contractors working at RAF Cranwell. its services are available to families in the wider community as well. The charity does not currently have any nuisery settings IIiAF Cranwell having transferred to RAF Kidz LirnitÈd in 20221. it still holds and attrads fundin8 and donations for the purp95e of 5UPPQrting childcare and developin8 nursery settin85. In draftingthe above statemènts, theTrusteès have complied with the duty in theCharitiesA¢t 2011, to have duè regard to public benefit guidance published by the Charbty Commission. Financial Review In the twelve months to 31 December 2023, the Chariws income was £243.630 12022= £897.9191. The Charit$ expenditure were £206,51512022.' £839,871). resultinB in a surplus of £S2.$0312022: £56,262). The capital and re5eryès of the Charity at the end of the year were £266.84312022- £214.2301. Reserves pollcy Trustees have reviewed the Reseryes Policy and have affirmed the restricted and designated funds as Set out in note 10. which exist to ensure that the Charity can continue to invest in projects which support the achievement of its charitable object and.improve the experience of children attending the speu.fic nursery settings. The designated fund of É38.000 has been created to allocate accumulated fund5 from when the cornpany had FiAF Cranwell Nursery for future applieètion atthat nursery. As of 31 December 2023, total funds are £266.843 of which free, unrestricted reseNes are £13,358.
RAFA KIDZONE LIMITED TRUSTEES. REPORT (continued) YEAR ENDED 31 DECEMBER 2023 Structure and Governance The Charity is a company limited by guarantee and a re8iStered tharity 8ovemed by its Articles of Asso¢iation. The Charity is registered with the Charity Commission and with Ofsted. The Charity Is 3 wholly owned Subsidiary of RAFA Kidz Limited, which isa whollyowned subsidiaryof the Royal Air Forces A$50¢iation (registered charity number 226686 and SC0376731. The Board of Trustees is collectively accountable for the long-term success of the Charity and Trustee5 act in accordance with their duties under charity law_ frustees are also company direclors and subject to the director5, duties set out in sertion5 170-177 Companies Act 2(. The Board is responsib for the CharitV5 cornpliance with all relevant legislative and regulatory requirements. It Is rèsponsible for determining the strateBV and values of the Charity, its performancÈ. standards of conduct and corporate governance. The Board reviews the position of the Charity and receives reports from the Management Team lèd by the Manager. The Board is responsible for approwng the annual businèss plan and a range of supporting strategies. The Board believes ihat good governance is key to the ongoing success of the organisation. In ierms of maintalnlng high standards of governance and has adopied of the Charity Govemantè Code for smaller charities. Composition of the Boord of Tmstees The Trustees who served in the year to 310etember 2023 are listed below. R P O'connor (resigned l March 20231 R Huxford MBE R 8rutnall P Sherwin lappointed l Mar¢h 20241 All Trustees give their time voluntarily and re¢eive no benefrts from the Charity. No expenses were reclaimed from the Charity. RP O'connor. R Huxford. R Brutnall and P Sherwin are employees of the Royal Air Forces Association. Connor 15 a direttor of RAFA Kidi Limited. In accordance wth the Charl5 Articles of Association. Trustees are appointed by thecharivs sole member, RAFA Kidz Limtted. When recruiting new Trustees appropriate due dil¥ence is carried out to ensure that ondidates have a valid DBS check, are eligible to act as charity trustees and coinpany directors in accorLlance with the Articles of Association, Charities Act 2011 las amended by Charities Iprotection and Soual Investment) Art 20161 and CompanTres Act 2006 and are fit and proper piersons a5 define(l under the mana8ement condition in Finance Ad 2010. Each Trustee 15 provide(1 with a briefing pack and an individual indurtion pro8ramme is agfeed and implemenied ¢overing all aspects of the role and the work of the Charity as required. Trustees a150 recerve ongoin8 briefin8s and training from subjert-matter experts and external advisers in crititsl areas su¢h as ¢)tsted fegulation. safe8uardiA& health and safety, data protection, risk management and reserves.
RAFA KIDZONE LIMITED TRUSTEES. REPORT (continued) YEAR ENDED 31 DECEMBER 2023 Risk Management The Trustees have overall responsibility for ensuring that the Charity has an appropriate system of controls, financial and othenyise. to provide reasonable assurance ihat its assets are safeguarded against unauthorised use or disposal, that proper records are maintained. and information is reliable and that relevant laws and regulations are complied with. As a member of the Royal Air Forces As50Ciation group. the Charity 15 5ubjert to the Asso¢iatTron's Risk Management Policy and Trustees have reviewed their risk appetite durin8 the year. In terms of priorities, Trustees havè agreed that the need to avoid reputational. compliance and excessive finanoal risk will take priority over other factors. whilst recognising a balanced assessment has to be taken as. in many cases. there are risks attached to both doing something and doing nothing. The risk rnanagement process set out in ihe poli¢y is desi8nÈd to identify and assess rsks and so that appropriate risk management strategies are implemente(l. and their effertiveness monitored. Trustees have identtfied the following a5 its key risks= Regulatory compliance. Mitlgation includes employment of professionally qualified staff and mandatory trainin& the support of relevant subiert matter experts empbye(I by other group companies and regular eviews of poliaes: Long-tefm finanoal sustainability and 5hort-term cash fft>w failure. Mitigation plans include financial planning and pefformance monitorin& both in terms of annual budgets and reser¥es and investrnents.. and Loss of operational capability. Plans include a range of processes to ensure rettuitmènt and retention of appropriately qualified and trained ernployees. Plans for th• future The Trustees are committed to supporting the delivery of affordable and nurturing earty years. ¢hild¢are in welcomlng and safe environments and ensuring the long-term sustainability of the Charity. The Charity is seekin8 to carefully apply Its fund in support of the provision of high-quality childcare. TheTrustees have considered the Charit715 performance during 2023 and have reviewed the 2024 full year forecasi and the assumption5 on which the forecasts were based and are satisfied that the Charity remains a going concern, is financially viable for at least the next months and has a tharitable purpose to meet which it is able to deliver. Auditor The auditor. UHY Hacker Youn& is deemed to be reappointed under section 487121 of the Companies Act 2006. frustees. responsibilities In relation to financlal slatemènts The Trustees are responsible for preparing the Trustee5' Report and the financial ststements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally AcceptÈd Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial period, which give a true and fair view of the Charity and of the incoming rèsources and application of resources. including the income and expenditure of the Charity for that period. In preparing these finan¢ial statements. the Trustees are required to.. Select suitable accounting policies and then apply them consistentty: Observe the methods and prinaples in the Charities Statement of Recommended Practice,. Make judgments and estrmates that are reasonable and pNdent- State whether applicable UK Accountin8 Standards have been followed. subjett to any material departures disclosed and explained in the financial statements- and
RAFA KIDZONE LIMITED TRUSTEES, REPORT (contlnued) YEAR ENDED 31 DECEMBER 2023 Prepare the financial statements on the g¢ing ¢on¢em basi% unless it is inappropriate to presume that the Charity will continue in business. Trustees. respon5ibllltles In relatlon to finandal statements {contlrK*d) The Trustees are responsible for keepin8 adequate accountine records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements ¢omply with the Companies Act 2006. They are also responsible for safe8uardin8 the a55ets of the A5S0Ciation and the group and hence for taking reasonable 5tep5 for the prevention and detertion of fraud and other irregularities. In so far a5 the Trustee5 •re aware.. There is no relevant audit infomiation of whith thè Charitvs auditor 15 unaware- and The Trusiees have iaken all steps that they oughi to have taken to make themselves aware of any relevant audit information and to establish that ihe auditor is aware of that inf0mtIon. This report was approved by the Trustees on 16 April 2024 and signed on its behalf by: BE Trustee
Hackeryoung 14P•kP INDEPENDENT AUDITOWS REPORTTO THE MEMBERS OF RAFA KIDZONE LIMITED Opinion We have audited the financial statements of RAFA Kidzone Limited (the 'charitable companWI for the year ended 31 December 2023 whi¢h comprise thè Staternent of Financial Artivities, thè Balance Sheet, the Statemènt of cashflows and notes to the financial statements. induding significant accountin8 poli¢ies. The financial reporting framework that has been applied in therr preparation is applicable law and Llnited Kingdom Accounting Standards, intlLFding FRS 102 The Financial Reportin8 Standard applicable in ihe UK and Republic of Ireland- Iuniied Kingdom Geneially Accepted Accounting Practicel. In our opinion the financial statements.. give a true and fair view of the state of ihe charitable companrfs affairs as at 31 December 2023 and of its incoming resources and application of resources. including its rncomè and expenditure. for the year then ended,. have been properly prepared in accordancewith United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. 6asls for opinlon We conducted ouraudit in accordancewith Intemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are furtherdestribed in the Auditorfs fespon5ibilities fgr the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of thè finanaal siatements in the VK, in¢luding the FRCS Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficieni and appropriate to provide a basts for our opinion. Concluslons relatlng to golng con¢em. In auditing the financial statemeRts, we have conduded that tfie trustee5' use of the goin8 concern basis of accountin8 in the preparation of the financial statements appropriate. Based on the work we have performed. we havenot identified any materTral nrtaIntIeS relating to events orconditions that, individually or collertively, may cast significant doubt on the charitable compan$ ability to continue as a goin concern for a period of at least twel¥e months from when the finanual statements are aUtIriSed for issue. Our responsibilities and the responsibilities of the ttee5 with resped to goin8 concern are described in the relevartt Sections of this report. Other Information The other information comprises the information included irTr the Trustee5' report other than the financial statements and OUT auditorfs report thereon. The trustees are responsible for the other information contained within the Trustees. report. Our opinion on the finanoal statements does not cover the other infomiation and. except to the extent othefwise explicitly stated in our report. we do not express any form of assurance ¢ondusion thereon. Our responsibility is to read the other information and. in doing so. considerwhetherthe other information is materially Inconsistent with the financial statements, or tsur knowl@* obtained in the course of thè audit or otherwise appears to be materially misstated. If we identify such rnaterial inconsistencles or apparenl material misstatements. we afe required to determine whether this gives rise to a material misstatement in the financial statement5 themselves. If. based on the work we have performe(l. we conclude that there is a material mi5Statement of this other information, we are required to report that fact. We have niithing to report in ihis regard. Oplnlons on other mattels pres¢rlbed byihe Compan6es A¢t 2(X16 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees. Report. which includes the Directors. Report prepared for the purposes of company law, for tke financial year for which the financial statements afe Prepared is consistent with the financial statements. and the Directors. Report included within the Trustees. Report has been prepared in accordance with applicable legal requirements.
Hackeryoung iWYllo¢¢iYour• UP 14 Pth (harte¢od4CeXmtsMS INDEPENDENT AUDITOWS REPORT TO THE MEMBERS OF RAFA KIDZONE LIMITED Matters on ¥thkh we are requlred to report by emceptlon. In the light of the knowledge and understanding of the charttable compar)y and its environment obtained in the coursè .of the audit, we have not identified material misstaternents in the Directors, included within the Trustees. Report. We have nothing to report in respert of the followi matters where the Companies Act 2tsJ6 requlres us to report to vou if, in our opinion.. dequaie a¢¢ounting records have not been kept, or returns adequaie for our audii have not been recelved frorn branche5 not visited by u5- or the finanaal statements are not in agreement with the at¢ountin8 records and returns.. or certain disclosures of tru5tee5' remuneration 5pe¢ified by law are not made.. or we have noi received all the information and explanations we require for our audit.. or the Tfustees were not entitled to prepare the financial statements in accordance with the Small companies. regime and take advaniage of the Small ¢ompanies' exemption from the requirement to prepare a StrateBic Report in preparing the Trustee5' Report. Responsibilities of trustees As explained more fully in the Statement of Trustees. responsibilities set out on page 5. the trustee5 Iwho are also the directors of the charitable cornpany for the PUrFSe5 of company lawl are responsible for the preparation of the financial statements and for being satisfied that ihey give a true and fair wew, and for such iniernal control as the trustees determine is necessary to enable the preparation of financial statement5 thot are free from material misstarement. whether due to fraud or error. In preparing the finanaal statements, the tTUStee5 are re5pon5ible for assessing the charitable companvs ability to continue as a goin8 concern, disclosin& as applicable. matters related to going toncem and using the going concern basis of accounting unless the trustees either intend to liquidatethe¢h3ritabk company or to cease operatlons. or have no fealistic alternative but to do 50. Audilvrf5 responsibililies for the audii of the financial Statements Our objectives are to obtain reasonable a55urance aboul wheiher the financial statements as a whole are free from material misstatement. wheihef due to fraud or error. and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detert a material missiatemeni when r( exists. Misstatements can arise from fraud or error and are considered material if. individuallyor in the aggregate. theycould reasonabty beexpe¢ted to influencethe economic decisions of users taken on the basis of these financial statements. The extent to whlch the audlt was ¢onsldered Capable of detertin8 irregularities. indudin8 fraud. Irre8ularities are instances of non-compliance with laws and regulations. The objettives of our audit arè to obtain sufficient appropriate audit evidence regardin8 compliance with law5 and regulations that have a direct èffert on the determination of material amounts and disclosures in the financial 5tatement5. to perform audit procedures io help identify instances of non<ompliance with other laws and regulations that may have a material effert On the finan¢ial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. In relation to fraud, the objective5 of our audit are to identify and assess the risk of material misstatement of the financial 5tatement5 due to fraud. to obtain sufficient appropriate audit evidence regarding ihe assessed risks of material misstatement due to fraud throu8h designin8 and implementing appropriate responses and io respond appropriatdy to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management, with the oversi8ht of ihose charged with governance, to ensure that the entiiy's operations are conducted in accordance with the provisions of laws tynd regulations and for the prevention and detection of Iraud.
Hackeryoung 14 pa Pthv i•JiiwW)IIGI INDEPENDENT AUDITOWS REPORT TO THE MEMBERS OF RAFA KIDZONE LIMITED In identifying and assessing risks of material misstatement in respert of irregularitie5. including fraud. the audit en8agement team= obtained an understanding of the nature of the sector, induding the legal and regulatory framework that the charitable comparry operates in and how the charitable company is complying with the legal and regulatory framework.. inquired of managemenL and those ¢harged with governan. about their own identification and assessment of the risks of irregularilies. including any known artual, suspetted or alleged instantÈs of fraud.. and dlscussed matters about non-compliance with laws and regulations and how fraud might ¢xcur including assessmènt of how and where the financial statements may be su%tÈptible to fraud. As a rèsult of thÈsè procèdurès. wè consider the most significant law5 and règulations that have a direct impad on the financial 5tsternents are FRS 102, Charities SORP, Companies Aci 21I)6, Charities Act 2011, the tharitsble companrfs governing document, tax leEislation and Charities IProtection and Social Investment) Act 2016. We performed audit procedures to deted norrfompliances which may have a material impart on the financial statements which included feviewiri8 the financial ststements including the Trustees. Reporc remaining olert to new or unusual transaction5 which may not be in accordance with the governing documents. inspectinB correspondence with local tax authorities and evaluatin8 advice received from internallexternal advisor The most significant laws and regulations that have an indirect impaa on the hnanaal statements are Keeping Children Safe in Education under section 175 of thè Education Aci 22. the Childcare Art 2C*)6 and the UK General Data Protection Regulaiion IUK GOPRI. We performed audit procedures to inquire of whethèr the company is in complian with these law and regulations and insperted correspondÈntè with licensing or regulatory authorities. The audit engagement tèam Identifi the risk of man38ement ovÈrridÈ of contro15 a5 the area wherè the financial statements were most susceptible io material misstatement due to fvaud. Audit procedure5 performed included but were not limited to testing manual jcmjrnal entrie5 and other adjustments. evaluatin8 the business rationale in relation to significant. unusual transartions and tran5aclion5 entered into outside the normal course of business, thallen8in8 judgments and estimates. Afurther description of our responsibilitie5 forthe audit of the financial statements 15 lo¢ated on ihe Financial Rèportin8 Council's website at http=Ilwww.Irt.or8.uVauditOTsresponsibilities. This dÈscription form5 Part of our auditorfs rèport. Use ol our report This report is rnade solely to the charitable compan$ members, as a boo¥, in accordance with Chapter 3 of Part 16 of the Companies Act 2(¥)6. Our audit work has been undertaken so that we might state to the charitable companws members those matter5 we are required to state to them in an auditoes report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyorte other than the charitable company and the charitable compan$ members as a body. for our audit work. for this report. or for the opinions we have formed. CknJ 14{c4 Chris McKain Senior siaiuiory Auditor 23 hP41¥ .19.2+ Date... Forand on behalf of UHY Hackeryour Chartered Accountants and Statulory Auditor
RAFA KIDZONE LIMITED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 T11 Totsl 2023 2022 INCOME FROM Donations 242,630 243,630 85,218 Charitable Artivitie5 Fees 650,277 133.486 28.938 Grants Miscellaneous Total Income 242,630 243,630 B97,919 EXPENDITURE ON Charitable ArtTrvities 13,4421 14.6(KII 1198.4731 1206.5151 1839.8711 Total Expendtture 13.4142) {4.6WI (198,4731 1206.5151 1839J711 Net IncomellExpenditure) and net movement in funds for the year 12.4421 I4.6) 44.157 37.115 ' Gain I (Loss) on Investment 15,388 11,7861 Net movemeni In funds {2.442) 14MII 59.545 SI03 56262 ' Reconciliation of Funds Total Fund5 Brought Forward Transfer between Funds 50,4 134.6(Ql 163.940 I8.(0) 214.340 158,078 42.61X) Total Funds CaNied Forward 13.358 38JXIO 215,485 266 214340
RAFA KIDZONE LIMITED BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes FIXED ASSETS Investments 213,602 98.214 CURRENT ASSErs Debtors Cash as bank and in hand 20,671 140.845 55.278 55,278 161.516 CREDITORS Amounts falling due within one vear 12,037) 145,3901 NET CURRENT ASSETS 53.241 116,126 .TOTAL ASSETS LESS CURRENT LIABiunES 266J43 t214340 FUNDS Restricted funds= Brize Norton Nufsery Fund Digby Nursery Fund Leeming Nursery Fund Designated-. Cranwell Nursery Fund General io io io 48.583 99.422 67.480 loo,000 65.726 io io 38.C 13.358 48.614 TOTAL FUNDS 266343 214.340 Approved by the Trustees and signed on their behalf on 16 April 2024 MBE Tru -1
RAFA KIDZONE LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 Cash flow5 from operatlng actl¥hies 2023 2022 Net cash froml (used inl operating artivities 14,433 58,514 Cash flow from investin8 attltIeS Purchase of fixed assets Puichase of investments Proceeds from sale of fixed assets Net cash used in investment activities 13,0411 (IIK),000) 15,420 187.6211 iicrf).)I Ii¢XJ.0001 Changed in cash and ¢ash equiwalents in the year 185.5671 29.107 Cash and cash equivalents at the beginni of the year 140.845 169.952 Cash and cash equivalents at the end of the year 55,278 140,845 Reconciliation of net movements In funds to net Cash flow5 from operatlni •rtl¥kles Notes 2023 2022 et movement In funds for th* reportin8 F)triod Adjustments for.. Depreciation on tangible fixed assets 52.503 5.656 Falr value movement on invÈstmÈnts 115,3881 . 20.671 143.3531 1,786 118.9221. 13.732 Ilncreasell decrease in debtor5 Ioecreasell increase in (rediiors Net cash generated from operating a¢tivrties 14.433 58.514 Analysls ol cash athd cash eqUIlent 2023 2022 Cash in hand Bank accounts 55,278 55.278 140.845 140.845 -li-
RAFA KIDZONE LIMITED NOTESTO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 CRITICAL ACCOUNTING E5fiMATE5 AND AREAS OF JUDGEMENT Estimates and judgements are continually evaluated and are based ctn historical experience and other factors, including expectations of future events that are believed to be reasonable under the CircumstanS. There are no critical accounting estimate5 and area5 of jud8ement to note. PRINCIPAL ACCOUNTING POUCIES General lo)lomiatSon RAFA Kidzone limited is an ineorporated privaie company (registered number084183671 and a reBistered charitv at the Charity Commission ltharity registration no. 11548221 in England and Wales. The d)arity is a company limited by guarantee. The add$S of the £haritVs registewed offi¢e Ds Atlas House, Wembley Road. Leicester. EnBland LE3 IUT. The nature of the charitvs activities are set out in the Trustees Report. Basis of preparation The financial staternents have been prepared. under the historical c05t convention and in accordantè wtth applicable United Kingdom Accounting Standard5. The finanoal statement5 have been prepared in accordan with Accountin8 and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance wth the Ftnancial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011 and the requirements of the Companies Att 2006. RAFA Kidione Limited meets the definition of a public benefit entity under FRS 102 arKI has therefore applied the relevant public benefit requirements of FRS 102. Monetary arnounts in the financial statements are rounded to the nearest El. The finafKial statements are presented in sterling which is also the funrtional currency of the Charity- .GOI ¢oncem Based on the CoMpanS forecasts. the Directors have adopted the going concern basis in Preparing the Financial Statements. The Directors have made this asse55rnent after consideration of the companV5 cash flows and related assumptions and in accordance with the Guidan published by the UK Finanoal Reporting Council. The COmpanS accounts and cash flow forecasts take all the above factors into actount and Indicate that the Company will have sufficient funds to operate as a going ¢oncem for ihe foreseeable future. Fund actounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the objectives of the Chafity and which have not been designated for other purposes. Oe54gnated funds are unrestriued funds that have been set aside by the Trustees for partl¢ular purposes. These fund$ are reviewed annually. Restricted funds are funds which are to be used in accordance with specific restrittions imposed by donors or which have. been raised by the Charity for particular purposes. Expenditure is charged lo the Statement of Financial Activities when incurred. -12-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 PRINCIPALACCOUNnNG POUCIES {CONnNLIED) In¢ome All incorne is induded in the Statement of Finanaal Activities when the charity has entitlement to the funds, anv performance conditions attached to the income h3vÈ been met, it is probable that the income will be received. and the arnount can be measured reliably. The following specific policies are applied to particular categories of incorne. Income in the form of donations is induded when receivable. Fundraising income is induded in income in the period in whith the Charity becomes entitled to receipt. Investment income is induded when receivable. Income from tharitsble artivities including grants re¢ei¥ablÈ is included in income In ihe period in which the charity becomes entitled to receipt. Government grants are recognised at thè fair Value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the granis will be e1ved. A 8rantthat speafies performanceconditions is recognised in income when the performance conditions are met. Where a grant does not specify performance tonditions it is recognised in income when the proceeds are received or receivable. A grant rec*¥ed before the recognition (riieria are satisfied is Tecognised as a liability- Empenditure All expenditure is accounted for on an accruals basis as a liability is incurred or when the Charity is deemed to have a legal or construrtive obligation which will result in a probable transfer of economK benefits. Expenditure has been classifie(l under headin85 that a8gregate all Costs related to the category. Expenditure includes Irrecoverable VAT. Costs of raising funds intjude fundraising tradrng tosts. These costs are regarded as necessary to generate funds that are needed to finance charitable attivities. Charitable artivities expenditure enables the Charity to meet its tharitab aims and objecttves and include both dirert and support costs relaiing to the auiwty. Support costs have been allocated to cost of raising funds and chafltable activities on a basis of direct Costs where appropriate and for salaries on a proportionate perntage of tirne. Tangible fjxed assets It is RAFA Kidzone Limited policy thai all iiems either purchased by or donated to RAFA Kidzone Limited for use within the childcare sessions shall not be capiralised due to the expected heavy use and wear and tear within such an environment. These rtems shall be treated as immediate expenditure with no depreciation. The capitalisation limtt for all other items is set at £l.OCrf). -13-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 PRIIICIPAL ACCOUIITING POUCIES ICOP4TINUEO) Tan8lble fixed assets {contInU1 TanBible fixed assets are initially recorded at cosi and subsequently measure at cost or valuation net of depreciation and any impairment loss. Depreuation rs provided for on all tsngible fixed assets at rates calculated to write each asset down to its estimated Value evenly over its experted useful economic life as follows.. Office equipment Furniture & fixtures NuT5ery equipment Motor vehicles 25% straight line 25% straighi line 25% strai8ht line 25% on net book value Impairment reviews are carried out where there are indications that recoverable amounts of fixed assets are below their carrying values. Shortfalls beiween the carryin8 value of fixed assets and their recoverable amount5 are re¢ognisèd as impaiinient losses in the Statement of Finan¢ial Artmties. Donations of 8oods and serylces DonatFons were mode during the year to RAFA Kidi knmited. for the purpose of achievin8 the objerts of the charity and 5UPPOrtin8 the nurseries at RAF Leernin8 and KAF Cranwell. Investments Long term investments are classified as fixed assets. Short term investments are dassified a5 current assets. Listed investments are stated at fair value at the balance sheet date. Realised and unreali5ed Bain5 and10s5es are shown in the Statement of FinancialActivities. The fair value of the investments quoted on a reco8nised stock exchange is the quoted bid prKe. Hnandal Instruments The Charity has elected to apply the prowsions of Section Il'Basic Finaneial Instruments. and Section 12 '0ther Flnancial Instruments Issues. of FRS 102. in full. to all of its fJnan¢ial instruments. Retirement bw Fordefined contribution sthemes the amount¢harged to the Statement of Financial Activities 15 the Contribution payable in the year. Difference between contributions payabk in the year and contributions actually paid are Shown a5 either accruals or prepayments. GRANTS 2023 2022 Local Authority Welfare 133.486 55 133.541 All grant income is unrestricted in the Current year and prior period. -14-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 CHARITABiE AcfiviTIES 2023 Total 2022 Total Expenditure Genval Fund5: Direct Costs 541,238 280,359 Allocated support costs Donaiion to RAFA Kidz Total Unrestricted Funds 2.442 i.0 2.442 821,597 Intluded within total Èxpenditure F5 a charge for auditor< remuneratK)n of £2,260 for the current year 12022.. £2.oc(II DÈsi8naied FurKI5: Cranwell Nursery Setting Total Designated Funds 4.600 Restricted Funds: Donation to RAFA Kidi Limited for Digby Nursery Donation to RAFA Kidz Limited for Brize Norton Nursery Donation to RAFA Kidz Limited for RAF High Wycombe Nursery Donation to RAFA Kidz Lirnited for RAF Leemin& Nursery Total Re5tricled Funds 3,793 152.680 42.( 3,793 152.680 42.(*) 18.274 18.274 198A73 198A73 Total 206,515 2Q6.515 839,871 ALLOCATED SUPPORTCOSTS 2023 2022 Other site costs Advertising and promotion Printin8 and stationery Telephone Insurance Repairs Depreciation Management fee Other expendilure Staff costs Governan¢e ¢o5ts 1.195 312 2.354 2.766 8.335 1.575 5,656 68,881 33.622 142.766 12,896 2.442 2.442 280.359 -15-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 STAFF cosrs 2023 2022 Total stsff costs for the charity comprised.. Gross 5alarie5 Employerfs National Insuran Employerfs pèn5i0n 592.743 39,255 10.196 fj42.194 The avera8e number of staff employed by the charity during the year ended 31 (kmber 2023 was Nil12022- 431. AJI key management personnel are paid thr.ough the parent charity and disdosed in their financial statements. No employee was paid E60,OCKI or more in the current year or prior period. TRusfEES REMUNERATK No remunefation or expenses were paid to the Trustees during the current year or Prior year. The trustees were rernunerated for their services to the8roup bytheultimate parent undertakin& The Royal Air Forces Association. Professional indemnity insurance to cover the Trustees was paid by the charity during theyear. 7. IP4VESTMENTS Total 2023 Market Value as at i January 2023 at l January 2023 Additions 98.214 I.(mY) 15.388 Fair value movement on Investment Market Value as at 31 December 2023 213.602 Historical cost as at 31 December 2023 2W,(KKI RAFA Kidzone Limit invèsted funds in the year with Rothschild & Co into their pooled New Court Fund. All investments are carried al their fair value. lrtvestment in equitTres and fixed interest securities are all iraded in quoted public markets. The basis of fair value for quoted investments is equivalent to the markei value. using the bid price. Asset sale5 and purthases are reco8nised at the date of trade at cost (that is their transaction value). The investment funds held are wholty within Rothschild & Co. New Court F¢Jnd. in multi asset and hybrid instruments199.99%1 or cash10.Ol%l, where there are no holdings in excess of 5% of the total market value. -16-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 DEBTORS 2023 2022 Trade debtors Amounts owed from group undertakings 5.251 15.420 20.671 CREDrroRS 2023 2022 Amounts fallln8 due wlthln one Yr Trade creditors 8.625 29,SC(I Amounts owed to group undertakings Accruals oiher creditors 177 1,860 5,265 45.390 1037 io. ANALYSIS OF FUNDS Balan as at l January 2023 Balan$ as at 31 December 2023 Income Expendlture Transfers Restrlcted Fund Brize Nursery Fund Di8by Nursery Fund High Wycombè Nursery Fund Leerning Nursery Fund Gain I (Lossl on investment TOTAL 21J).CrfJ) . IIs2,6801 630 13.7931 142,(Wl 1,263. 2.585 48.583 99.422 i¢yJ.( 42,CO) 65.726 11,7861 163.940 1.754 113,6021 18,0(Xll 67.480 15.388 2S8,018 1198A731 215,485 Unrestri¢ied Funds: DeSnated FurKIs'. Cranwell Nufsery Fund TOTAI De518nated 14.6CK)I 4.6001 42.6[ 42.600 38,000 38.000 General Ileserve 13,4421 134,600) 13.358 TOTAL 214.340 259.018 {206.$151 266.843 Restrlrted fund5 This fe5trirted fund 15 to enable the fulure development of those nurseries. New Restrided funds were created in the year as funds were received for the purpose of development and sUPPOrt of the Nurseries. Investment gains of £8.00012022'. £Nill are allocated to ihe General Fund towards the costs of runningihe organisation, and the residual amounts are proportionality across the restricted funds balance5 at the end of the year. Total restricted fund5 at 31 December 2023 are £215.48512022". £163.9401. Deslgnated funds The Trustees created a de5i8nated fvnd from Cranwell accumulated reserve5 for the fulure development of Cranwell nursery. Total DesiEnated fvnds at 31 December 2023 are £38.LlXJ12022.- £Nill. -17-
RAFA KIDZONE UMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 11. ANALYSIS OF NEfA55Ef5 8ETWEEII FUNDS Doslgnated Fynds Restrkted Funds fut Total Investments 213.602 1.883 213,602 55.278 12.0371 Current Assets 15.395 12.0371 Current Liabilities Total Net Asset 13358 215.485 Restrkted Funds Prlor Year funds Total Investments 98.214 98,214 161,516 145,3901 214.340 Current Assets 161.516 145.3901 116.126 Cvrrent Liabilitses .. Totsl Net Asset 98.214 12. RELATED PARTY TRANSACTIONS During the year the Charity paid management fee5 of £Nil12022.. £38,848) to RAFA Kidz Limited, thè immediate parent undertaking. At the year end the Charity owed £17712022.. £29,5c(Il to RAFA Kidz Limited. RAFA Kidi Limited owe5 £Nil12022.' £15.2401 to RAFA Kidzone Limited al the end of the year. During the year the Charity rnade purthases of £Nil12022= £3,156> from RAFATrad Limited, a company owned by the ultimate parent undertakin& the Royal Air Force5 Association. 13. PARENT COMPANY RAFA Kidzone Limited is a whollyowned subsidiary of RAFA Kidz Limited (Company number 11927027, registered in England and Wales). This is the Charitvs immediate parent undertakin8. The registered ofFice is the same as its ultimate parent undertakin8. The prinapal activity of K4FA Kidz Limited is thai of runninga children's nursery. RAFA Kidz Limited is a wholly owned subsidiaryof the Royal Air Forces Association, a charrty registered in England and Wale5 (registration number 2266861 and Scotland (registered number SC0376731. Purpose of Association is to promote the weware by charitable mean5 of all serying and former members of the Air Forces. Thi5 is Ihe Chafitls ultimate parent undertaking. The Charity is only included in the consolidated accounts of The Royal Air Force Association. Their account5 are available from the registered offi¢e being Atlas Htyjse. Wembley Road, Leicester. England LE3 IUT. -18-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 I& COMPARATIVE STATEME1 OF FINANCIAL AcnvmES FOR ThE YEAR ENOEO 310ECEM8ER 2022 continuing opèrations at 31 Detsmber 1022 0ixontinu operatlonsat 31 Oetember 2022 Total 2022 INCOME FROM Donations 1.218 85.218 Charitable Artivitie5 Fees 650,277 133,486 28,938 650,277 133,486 28,938 Grants Miscellaneous Total In¢ome 813.919 897.919 EXPENDITURE 014 Charitable Actiwties Iio,LD)I 118,2741 1811,5971 1839,8711 Investment Total ExndItsre (lo,(Al {18,1741 1811.5971 1839A71) Net IncomellE¥penditurel and net moveme•)t in lunds for the year iio.(xJoi 65.726 2.322 Loss on Investment {1.7861 11,7861 Net movement in funds iio,(thii 63,940 2322 56,262 -19-