Company Registration No: 08418367 (England and Wales) Charity Registration No. 1154822 RAFA KIDZONE LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 AE8Z4C114 2710912025 COMPANIES HOUSE A12
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RAFA KIDZONE LIMITED CONTENTS PAGE Reference and administrative details Committee'5 report Independent auditorfs report Statement of Financial Activities io Balance Sheet li Statement of Cash Flows 12 Note5 to the Flnanclal Statements 13-19
RAFA KIDZONE LIMITED REFERENCE AND ADMINISTRATIVE DETAILS YEAR ENDED 31 DECEMBER 2024 Registered charity number 1154822 (England and Wales) Regislered company number 08418367 (England and Wales) Regislered office Atlas House Wembley Road Leicester England LE3 IUT Trustees R Brutnall P Sherwin (appointed l March 20241 D P Raynova Ifrorn l March 20251 Secretary R Brutnall Prlnclpal Office Atlas House Wembley Road Leicester LE3 IUT Audltor UHY Hacker Young Chartered Accountants 14 Park Row Nottingham NGI 6GR Investment Mana8ers Rothschild & Co New Court St Swithin's Lane London EC4N 8AL
COMMIThEES' REPORT YEAR ENDED 31 DECEMBER 2024 The Trustees of RAFA Kidzone Limited (the Charity) present this report and the financial statements of the Charity for the period ended 31 December 2024. The financial statements have been prepared based on the accounting policies set out in note 2 to the financial statements. Alms and Objecls The object of the Charity is to enhance the development and education of children and provide for their individual needs. This is done by offering inclusive and appropriate play and learning facilities that meet the needs of all children regardless of family status. disability, colour, ethnic origin, religion or belief. Actlvitie$ The Charity meets it objett by the holdin8 and investing funds for the benefit of children attendin8 the nursery settings at specific 5tation5 to benefit RAF personnel. Achievements The Charity donated £160,20312023: £203.0741 to nurseries from its Restricted and Designated Funds during the year to fund improvements at the nursery settings. Publlc beneflt Whilst the Charity ha5 in the past provided childcare for the children of serving personnel, civil 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 nursery settings IRAF Cranwell having transferred to RAF Kidz Limited in 20221. it still holds and attracts funding and donations for the purpose of supportln8 childcare and developin8 nursery settin8S. In draftin8 the above statements, the Trustees have complied wlth the duty in the Charitles Act 2011, to have due regard to public benefit guidance published by the Charity Commission. Financial Review In the twelve months to 31 December 2024, the Charity's income was £242,263 12023= £243,630). The Charity's expenditure was £165,38712023: £206.515I. and investment gains of £17,51012023- £15,388) resulting in a 5urplu5 of £94,38612023.' £52,503>. The capital and reserves of the Charity at the end of the year were £361.22912023.' £266,843). Reserves pollcy Trustees have reviewed the Reserves Policy and have affirmed the restricted and designated funds as set out in note 8. which exist to ensure that the Charity can continue to invest in projects which support the achievement of Its charitable objert and improve the experience of children attending the specific nursery Settings. As of 31 December 2024. total funds are £361,229 of which free, unrestricted reserves are £13.498.
COMMIThEES' REPORT (continued) YEAR ENDED 31 DECEMBER 2024 Strurture and Governance The Charity is a company limited by guarantee and a registered charity governed by its Articles of Association. The Charity is registered with the Charity Commission. The. c.harit.y i.s x whc>lly ownpd subsidiary of RAFA Kidi l.imite.d, which is a wholly nwne.A 4iJbsidiary of the Royal Air Fnrc.ps A550Cl3tion (registered charity number 226686 and SC0376731. The Board of Trustees is collectively accountable for the lon8-term success of the Charity and Trustees act in accordance with their duties under charity law. Trustees are also company directors and subject to the directors, duties set out in sections 170-177 Companies Act 2006. The Board is responsible for the Charity's compliance with all relevant legislative and re8ulatory requirements. It Is responsible for determining the strategy and values of the Charity, its performance, standards of conduct and corporate 80vernance. The Board reviews the position of the Charity and receives reports from the Mana8ement Team led by the Manager. The 8oard is responsible for approving the annual business plan and a range of supportin8 Strategies. The Board believes thèt good governance is key to the ongoing succe55 of the organisation. In terms of maintaining high sLdiidiJfLIs uf. ¥uverniJnce and has adupted uf tkie Cliai'll"y Gvvei'iidriie Cu(Jg fui sriidllei. iliai'il'les. Composition of the 8oord of Trustees Tli¥ Ti u5le&5 WIIU 5eived in the yedi Lu 31 DeLeiiibei 2024 dl'e lisled below. R Huxford M6E (until l March 20251 R 8rutnall P Sherwln {appolnted l March 20241 D Pavlinova Raynova (from l March 20251 All Trustees give their time voluntarily and receive no benefits from the Charity. No expenses were reclaimed from the Charity. R Huxford, R Brutnall and P Sherwin are employees of the Royal Air Forces Association. In accordance with the Charity's Articles of Association, Trustees are appointed by the Charity's sole member. RAFA Kidz Limited. When recruitin8 new Trustees appropriate due diligence 15 carried out to ensure that candidates have a valid OBS 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 IProtection and Social Investment} Act 20161 and Companies Act 2006 and are fit 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 requlred. Trustees also receive ongoing briefings and training from subject-matter experts and external advi5er5 in critical area5 such as Ofsted re8ulation, safe8uarding, health and safety, data protectlon, risk management and reserve5.
COMMITTEES, REPORT (continued) YEAR ENDED 31 DECEMBER 2024 Risk 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 against unauthori5ed use or disposal, that proper records are maintalned, and Informatlon 15 reliable and that relevant laws and regulations are cornplied with. As a member of the Royal Air Forces A550ciation group, the Charity is subject to the Association's Risk Management Policy and Trustees have reviewed their risk appetite during the year. In terms of priorities, Trustees have agreed that the need to avoid reputational, compliance and excessive financial risk will take priority over other factors, whilst recognising a balanced 355essment has to be taken as, in many cases, there are risks attached to both doing something and doing nothing. The risk management process set out in the policy is designed to identify and assess risks and so that appropriate risk management strategles are implemented, and their effectivene55 monitored. Trustees have identified the follawin8 as its key risks.. Regulatory compliance. Mitigation includes employment of professionally qualified staff and mandatory training, the support of relevant subject matter experts employed by other group companles and regular reviews of policies.. Long-term financial sustainability and short-term cash flow failure. Mitigation plans include flnanclal planning and performance monitorin8, both in terms of annual bud8ets and reserves and investments-. and L055 01. upei'dtiorsal caydbilily. Pli>ilS IiiLlude a rari¥e uf prucesse5 tu e115uI'e TeLruitiiigiil diiJ reteiitioii u( approprlately qualified and trained employees. Plans foi the futuie The Trustees are committed to supporting the delivery of affordable and nurturing early years, childcare in welcoming and safe environments and ensuring the long-term sustainability of the Charity. The Charity is seekin8 to carefully applv its fund in support of the provision of high-quality childcare. The Trustees have considered the Charity's performance during 2024 and have reviewed the 2025 full year forecast and the assumptions on which the foreca5t5 were based and are satisfied that the Charlty remalns a going concern, Is financially viable for at least the next twelve months and has a charitable purpose to meet which it is able to deliver. Auditor The auditor. UHY Hacker Young, Is deemed to be reappolnted under sectlon 487121 of the Companies Act 2006. Trustees. responslbllltles In relatlon to flnan¢lal statements The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practicel. Company law require5 the Trustee5 to prepare financial statement5 for each financial period. which give a true and fair view of the Charity and of the incomin8 resources and application of resources. including the Income and expenditure of the Charity for that period. In preparing these financial statements. the Trustees are required to.. Select suitable accounting policies and then apply them consistentlv; Observe the methods and principles in the Charities Statement of Recommended Practice.. Make judgments and estimates that are reasonable and prudent: State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and
COMMITTEES, REPORT (continued) YEAR ENDED 31 DECEMBER 2024 Prepare the financial statement5 on the goin8 concern basis unless it is inappropriate to presume that the Charity will continue in busines5. Trustees, responslblllties in relation to finantlal statements {continuedl The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statement5 comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Association and the group and hence for taking 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 information of which the Charity's auditor Is unaware,. and The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Thls report was approved by the Trustees on 22 April 2025 and sl8ned on Its behalf by.. R 8rutnall Chalr
UHY UHV Mck•vY•¥ftg LLP 14 Park Nattiwh•m NGI OGR INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAFA KIDZONE LIMITED Opinion We have audited the financial statements of RAFA Kidzone Limited (the '¢haritable company,) for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of cashflows and notes to the financial statement5. including 518nificant accounting policies. The financial reportin8 framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including FRS 102 "The Financial Reporting Standard appllcable in the UK and Republic of Ireland" {United Kin8dom Generally Accepted Accounting Practice). In our opinion the financial statements.. 8ive a true and fair view of the state of the charitable compan¢s affairs as at 310ecember 2024 and of Its incoming resources and application of resources, includin8 its income and expenditure, for the year then ended; have been properly prepared in accordance with Unlted Klngdom Generally Accepted Accounting Prattice,. and have been prepared in accordance with the requirements of the Companies Act 2006. 8asls for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS (UK)) and appllcable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance wlth the ethlcal requirements that are relevant to our audit of the financial statements in the UK, includin8 the FRCS Ethical Standard and we have fulfilled our other ethical responsibilities in accordance wlth these requlrements. We believe that the audit evldence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to zoln8 concern. In auditing the financial statements, we have concluded that the trustees, use of the going concern basi5 of accountin8 in the preparation of the financial statements Is approprlate. Based on the workwe have performed. we have not Identified anymaterial uncertalntles relating to eventsorconditlons that, individually or collectively. may cast significant doubt on the charitable company's ability to continue as a going concern for a perlod of at least twelve months from when the financial statement5 are authorlsed for issue. Our responslbllitles and the respon5ibilitie5 of the trustee5 wlth respect to 8oln8 concern are descrlbed In the relevant sections of this report. Other Infoimatlon The other informatlon compr15es the inforrnatlon Included In the Trustees, report other than the flnanclal statements and our auditorfs report thereon. The tru5tee5 are responsible for the other information contalned within the Trustees, report. Our opinion on the financlal statements does not cover the other information and. except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so. consider whether the other Information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to be materially mi5Stated. If we identify such material inconsistencies or apparent material mis5tatement5, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there is a materlal misstatement ofthSs other InformatSon, we are required to report that fart. We have nothing to report in this regard. Opinions on other matters prescrlbed by the Companles Art 2006 In our opinion. based on the work undertaken in the course of the audit: the information 8iven in the Trustees, Report. which includes the Directors, Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared 15 consistent with the financial st3tement5,' and the Directors, Report included within the Trustees, Report has been prepared in accordance with applicable legal requirements.
</UHY UHY Hxlt•vYèun• LLP 14 Pafk Rf Notlltwham Nfjl fjGR INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAFA KIDZONE LIMITED Matters on whlch we are requlred to report by exceptlon. 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 misstatements in the Directors, included within the Trustees, Report. We have nothing to report in respect of the following matters where the Companies Art 2006 requires to report to you if. in our opinion.. adequate accountlng records have not been kept, or returns adequate for our audit have not been received from branches not visited by us- or the financlal statements are not in agreement with the accountlng records and returns; or certain disclosures of trustees. remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. or the TrustÈe5 were not entltled to prepare the flnanclal statements In accordance with the small companSes' regime and take advantage of the small companles, exemption from the requirement to prepare a Strate8lc Report in preparing the Trustees, Report. Responslbllltles of trustees As explalned more fully In the Statement of Trustees. responsibilities set out on page 5, the trustees (who are also the directors of the charltable company for the purposes of company lawl are responsible for the preparatlon of the flnancial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparatlon of financial statements that are free from materlal mlsstatement, whether due to fraud or error. In preparlng the flnancial statements. the trustees are responslble for assesslng the charltable company's abllity to continue as a going concern, disclosin8, as applicable, matters related to going concern and using the goln8 concern basis of accounting unless the tru5tee5 either intend to liquidate the charitable company or to cease operatlons, or have no reallstlc alternatlve but to do so. Audltorfs responslbllltles for the audlt of the financlal statements Our objectlves are to obtaln reasonable assurance about whether the financial statements as a whole are free from material mlsstatement. whether due to fraud or error, and to Issue an auditorfs report that includes our opinion. Reasonable assurance is a hi8h level of assurance but is not a guarantee that an audit conducted In accordance with ISAS IUKI wlll always detect a materlal mlsstatement when it exists. Misstatements can arlse from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the eronomic decisions of users taken on the basis of these financial statements. The extent to whlch the audit was considered capable of detectin8 irre8ularities, includlng fraud. Irre8ularities are instances of non-compllance with laws and regulations. The objectives of our audlt are to obtaln sufficSent approprlate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and re8ulatlons that may have a material effect on the financial statements, and to respond appropriately to Identified or suspected non-compliance with law5 and regulatlons identified during the audit. In relation to fraud, the objectives of our audit are to identify and assess the risk of material mi55tatement of the financial statement5 due to fraud, to obtaln sufficient appropriate audit evidence regardin8 the a55e55ed risks of material mi55tatement due to fraud through designing and implementln8 appropriate responses and to respond appropriately to fraud or Suspected fraud identified during the audit. However, it 15 the primary responsibility of management, with the oversight of those charged wlth governance, to ensure that the entity's operation5 are condurted in accordance with the provision5 of law5 and re8ulations and for the prevention and detection of fraud.
</UHY UMY M•<k•rY•uhg LLP 14 Ptsrk Rfy¥ Notlinqhom NGI 6GA INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAFA KIDZONE LIMITED In identifying and assessing risks of material mi55tatement in respert of irregularities, including fraud, the audit engagement team: obtained an understanding of the nature of the sector, includin8 the legal and regulatory framework that the charitable company operates In and how the charitable company Is complying wlth the legal and regulatory framework,. inquired of management, and those charged with governance. about their own identification and assessment of the risks of irregularities, includin8 any known actual, suspected or alleged instances of fraud: and disCU55ed matters about non-compliance with laws and regulations and how fraud might occur Sncludlng a55e55ment of how and where the financlal statements may be susceptible to fraud. As a result of these procedures. we conslder the most slgnificant laws and regulations that have a dlrect Impact on the financial statement5 are FRS 102, Charities SORP. Companies Act 2006. Charities Act 2011, the charitable company's 8overnin8 document. tax legislation and Charities (Protectlon and Social Investment) Act 2016. We performed audit procedures to detect non-compllances whlch may have a materlal impact on the financial statements which included reviewing the financial statements including the Tru5tee5' Report, remaining alert to new or unusual transactions which may not be In accordance with the governin8 documents, inspecting correspondence with local tax authoritles and evaluatin8 advice received from internal/external advisors. The most slgnificant laws and regulations that have an indirect impact on the financial statements are Keepln8 Children Safe in Education under section 175 of the Education Act 2002, the Childcare Act 2006 and the UK General Data Protectlon Regulation (UK GDPRI. We performed audit procedures to inquire of whether the 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 area where the flnanclal statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limlted to testin8 manual journal entries and other adjustments, evaluatin8 the business rationale In relation to 518nificant, unusual transactions and transactions entered into outside the normal course of busine55, challenging Judgments and estimates. A further descriptlon of our responslbllities for the audit of the financial statements is located on the Financial Reportlng Council'5 website at http://wvrn.frc.org.uk/audltorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, a5 a body, in accordance with Chapter 3 of Part 16 of the Companles Act 2C106. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permltted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable companvs rnembers as a body, for our audit work, for this report, or for the opinion5 we have formed. Chris McKain Senior Statutory Auditor Forand on behalf of UHY HackerYoun8 Chartered Accountants and Statutory Auditor (L MPf1 2olS
RAFA KIDZONE LIMITED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024 Total Total Notes Unrestricted Designated Restrirted 2024 2023 INCOME FROM Donations 324 241,939 242,263 243,630 Total Income 324 Z41,939 242,263 243,630 EXPENDITURE ON Charltable Actlvlties 15,1841 1160,2031 1165.3871 1206.515} Total Expenditure (5,184) 1160,2031 1165,3871 {206.515) Net IExpendlture)Ilncome and net movement in funds for the year {4,8601 81,736 76,876 37,115 Gain on Investments 5,000 1.418 11,092 17,510 15,388 Net movement In funds 140 1,418 92,828 94,386 52,503 Reconciliation of Funds Total Funds 8rought Forward 13,358 38,000 215,485 266.843 214.340 Total Funds Carrled Forward 13.498 39,418 308,313 361,229 266.843 -iO-
RAFA KIDZONE LIMITED BALANCE SHEET AS AT 31 DECEMBER 2024 2024 2023 Notes FIXED ASSETS Investments 231,112 213.602 CURRENT ASSETS Cash as bank and in hand 134,794 55,278 134,794 55,278 CREDITORS Amounts falling due within one year 14,6771 {2.037) NET CURRENT ASSETS 130.117 53,241 TOTAL ASSETS LESS CURRENT LIABILITIES 361.229 266,843 FUNDS Restricted funds: 8rize Norton Nursery Fund Oigby Nursery Fund Leeming Nursery Fund 8oulmer Nursery Fund 101,047 103,133 86,953 17.180 48.583 99.422 67.480 Designated= Cranwell Nursery Fund General 39,418 13,498 38,000 13,358 TOTAL FUNDS 361.229 266,843 Approved by the Trustee5 and signed on their behalf on 22 April 2025 R Brutrsall -li-
RAFA KIDZONE LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 Cash flows from operat•n8 activlties Notes 2024 2023 Net cash from operatin8 activities below 79,516 14,433 Cash flow from investing activities Purchase of investments Net cash used in investment activities iioo,0001 iioo,0001 Chan8ed in cash and cash equivalent5 in the year 79,516 185,5671 Cash and cash equivalents at the beglnning of the year 55,278 140,845 Cash and cash equivalents at the end of the year 134,794 55,278 Reconclllatlon of net movements In funds to net cash flows from operating actlvltles Notes 2024 Z023 Net movement In funds for the reportln8 perlod Adjustments for.. Fair value movement on investments 94,386 52,503 117.5101 {15,388} 20,671 {43,353) Decrease in debtors Increaselldecreasel in creditors 2,640 Net Cash generated from operating activities above 79,516 14,433 Analysls ol cash and cash equlvalent 2024 2023 Cash in hand Bank accounts 134,794 134,794 55,278 55,178 -12-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 CRITICAL ACCOUNTING ESTIMATES ANO AREAS OF JUDGEMENT Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future event5 that are believed to be reasonable under the circumstances. There are no critical accounting estimates and areas of judgement to note. PRINCIPALACCOUNTING POLICIES General information RAFA Kidzone Limited is an incorporated private company Ire8lStered number 084183671 and a re8lStered charity at the Charity Commission (charity registration no. 11548221 in England and Wales. The charity is a companv Ilmited by guarantee. The address of the charltV'5 registered office Is Atla5 House, Wembley Road, Leicester, England LE3 IUT. The nature of the charitVs actlvities is set out in the Trustees Report. 8asls of preparatlon The financl31 statements have been prepared under the historical cost convention and in accordance with appllcable United Klngdom Accounting Standards. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom nd Republic of Ireland IFRS 102}. the Charities Act 2011 and the requirements of the Companies Act 2006. RAFA Kidzone Llmited meets the definition of a public benefit entity under FRS 102 and has therefore applled the relevant public benefit requirements of FRS 102. Monetary amounts in the financial statements are rounded to the nearest £1. The financial statements are presented in sterlin8 which is also the functional currency of the Charlty, Golng concern Based on the companws forecasts. the Directors have adopted the going concern basis in pieparin8 the Financlal Statements. The Directors have made this assessment after consideratlon of the company's cash flows and related assumptions and in accordance with the Guidance published by the UK Financial Reporting Council. The Company's accounts and cash flow forecasts take all the above factors into account and indicate that the Company will have sufficient funds to operate as a going concern for the foreseeable future. Fund accountlng General funds are unrestricted funds which are available for use at the discretion of the Trustees in f urtherance 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. Expenditure is char8ed to the Statement of Financial Activities when incurred -13-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 PRINCIPAL ACCOUNTING POLICIES (CONTINUEOI Income All income is Included in the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions attached to the income have been met. it is probable that the income will be received, and the amount can be measured reliably. The followin8 specific policies are applied to particular cate8ories of Income. Income in the form of donations Is included when recelvable. Fundraising Income Is Included in income In the period In which the Charity becomes entitled to receipt. Investment income is included when receivable. Income from charitable activities Including grants receivable is included in income in the perlod in which the charity becomes entitled to receipt. Government grants are reco8ni5ed at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the 8rants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is reco8nised In income when the proceeds are received or receivable. A grant received before the recognition criteria are satSsfied Is recognised as a Ilabllity. Expendlture All expenditure is accounted for on an accruals basis as a liabllity is incurred or when the Charity is deemed to have a legal or constructive obligation which will result in a probable transfer of economic benefits. Expenditure has been classified under heading5 that a8gre8ate all costs related to the category. Expenditure includes irrecoverable VAT. Cost5 of raising fund5 include fundraising tradin8 Costs. These costs are regarded as necessary to generate funds that are needed to finance charitable activities. Charitable activities expenditure enables the Charity to meet its charitable aims and objectlves and include both dlrect and support costs relatin8 to the activitv. Support Costs have been allocated to Cost of raisin8 funds and charitable activities on a basis of dlrect costs where appropriate and lor salaries on a proportionate percentage of time. Donatlons of goods and services Donations were made durlng the year to RAFA Kidz Limited, for the purpose of achievln8 the objects of the harity and supporting the nurseries at RAF Brize Norton, RAF High Wycombe, RAF Leeming, RAF Walter'5 Ash nd RAF Worthy Oown. Investments Long term investment5 are classified as fixed assets. Short term investments are classified a5 current assets. Listed investments are stated at fair value at the balance sheet date. Realised and unrealised gains and losses are shown in the Statement of Financial Activities. The fair value of the investments quoted on a reco8nised Stock exchange is the quoted bid price. -14-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 PRINCIPAL ACCOUNTING POLICIES ICONTINUEDI Financlal instruments The Charity has elected to apply the provisions of Section 11 'Basic Financial Instrument5. and Section 12 '0ther Financi31 Instruments Issues. of FRS 102. in full, to all of its financial instruments. DONATIONS Z024 2023 Unrestricted Restrlcted Total Total Donation Armed Forces Covenant Fund Trust 324 324 1,000 241,939 241,939 241.939 242,630 243,630 324 242,263 4 CHARITABLE ACTIVITIES 2024 Total 2023 Total xpendlture General Funds: Direct Costs Allocated support cost5 Donatlon to RAFA Kidz Limited 144 144 5,040 5,040 2,442 1,000 3,442 Toial Unrestrlcted Funds 5.184 S,184 Included withln total expenditure is a charge for auditors. remuneration of £2,100 for the current year 12023.. £2.2601 Deslgnated Funds: Cranwell Nursery Settin8 Total Desl8nated Funds 4.600 4.600 Restricted Funds: Donatlon to RAFA Kidz Llmited for RAFAKidz Oigby Donation to RAFA Kidz Limited for RAFAKidz 8rize Norton Donation to RAFA Kidz Limited for RAFAKidz High Wycombe Oonation to RAFA Kidz Limited for RAFAKid2 Leemin8 Oonation to RAFA Kidz Llmited for RAFAKidz Walter's Ash Donation to RAFA Kidz Limited for RAFAKidz Worthy Down Total Restricted Funds 3.793 152.680 42,000 36,324 39,764 18,161 29,850 36.104 160,Z03 36,324 39,764 18,161 29,850 36.104 160.203 198.473 Total 165,387 165,387 206.515 -15-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 ALLOCATED SUPPORT COSTS 2024 2023 Group agreement Other expenditure Governance costs 2,400 2.605 35 2.442 5,040 Z,442 TRUSTEES REMUNERATION No remuneration or expenses were paid to the Trustees durlng the current year or prlor year. The trustees were remunerated for their services to the group by the ultimate parent undertakin8, The Royal Air Forces Association. Professional indemnity insurance to cover the Trustees was paid by the charity during the year. 6. INVESTMENTS Total 1024 Market Value at l January 2024 Fair value movement on Investment 213,602 17,510 Market Value as at 31 December 2024 231,112 Historical cost as at 31 December 2024 200,000 RAFA Kldzone Limited invested funds in the year wlth Rothschild & Co into their pooled New Court Fund. All investment5 are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets. The basis of fair value for quoted investments is equivalent to the market value, u5in8 the bid price. Asset sales and purchases are reco8nised at the date of trade at C05t (that is their transaction value). The investment fund5 held are wholly within Rothschild & Co. New Court Fund. in rnulti asset and hybrid instruments {99.99%) or ca5h10.OI%), where there are no holdin8s in excess of 5% of the total market value. CREDITORS 2024 2023 Amounts falling due withln one year Amount5 owed to 8roup undertakings Accruals 2,567 2,110 4,677 177 1.860 2,037 -16-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 ANALYSIS OF FUNDS Balances as at l January 1024 Transfers- Investment Gains allocation Balances a$ at 31 December 2024 Income Expenditure Restricted Funds: 8ri2e Nursery Fund Boulmer Nursery Fund Digby Nursery Fund High Wycombe Nursery Fund Leeming Nursery Fund Walter's Ash Nursery Fund Worthy Down Nursery Fund TOTAL 48,583 85,IS3 16,562 136,3241 3,635 618 3.711 101,047 17.180 103,133 99.422 39,764 34,506 29,850 36,104 241,939 139,7641 118.1611 129,8501 136,1041 (160.203) 67,480 3,128 86,953 215,485 11,092 308,313 Unrestrlcted Funds: Designated Funds: Cranwell Nursery Fund TOTAL Desiinated 38,000 38,000 1,418 1,418 39,418 39,418 General Reserve 13,358 324 5,184 s,000 13,498 TOTAL 266,843 242,263 1165,387) 17,510 361,229 Restricted funds Thls restricted fund is to enable the future development of those nurseries. New Restricted funds were created in the year for Walter's Ash, Worthy Down and Boulmer Nursery Funds, as funds were received for the purpose of development and support of those nurseries. Investment gains of £5.00012023'. £8,000) are allocated to the General Fund towards the costs of running the organisation, and the residual amounts are proportionality across the restricted and designated funds year end balances. Total restricted funds at 310ecember 2024 are £308.313 12023.. £215,485). Designated funds Total Designated funds at 31 December 2024 are £39,41812023.' £38,000}. -17-
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 9. ANALYSIS OF NET ASSETS 8ETWEEN FUNDS Unrestricted funds Designated Funds Reslrirted Funds Total Investments 26,198 13,220 204,914 103,399 231,112 134,794 {4,677) Current Assets 18,175 {4.6771 Current Liabilities Total Net Asset 13,498 39,418 308,313 361,229 Unrestrlcted funds De51gnated Funds Restrlcted Fund5 Prlor Year Total Investments 213,602 1,883 213,602 55,278 12,0371 266,843 Current Assets 15,395 12,0371 13,358 38,000 Current Liabilities Total Net Asset 38,000 215,485 10. RELATED PARTY TRANSACTIONS At the year end the Charity owed £2,40012023'. £Nill to The Royal Air Forces A550Clation and £16712023: £177} to RAFA Kldz Limited. ii. PARENT COMPANY RAFA Kidzone Limited 15 a wholly owned subsidiary of RAFA Kidz Limited Icompany number 11927027, registered in England and Wales). Thi5 15 the Charity's immediate parent undertaking. The registered office 15 the same as its ultimate parent undertaking. The principal activity of RAFA Kidz Limited is that of running a children's nursery. RAFA Kidz Limited 15 a wholly owned subsidiary of the Royal Air Force5 Association. a charity registered in England and Wales {registration number 2266861 and Scotland Iregistered number SC0376731. Purpose of Association is to promote the welfare by charitable means of all serving and former members of the Air Forces. Thls is the Charity's ultirnate parent undertaking. The Charity 15 only irbcluded in the consolidated accounts of The Royal Air Force Association. Their accounts are available from the re8lStered office being Atlas House, Wembley Road, Leicester, England LE3 IUT. -18.
RAFA KIDZONE LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024 12. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted Desi8nated Funds Re5trl¢ted Total Funds Funds 2023 INCOME FROM Donations 1,000 242,630 243.630 Total Income 1,000 Z42,630 243,630 EXPENDITURE ON Charltable Activlties 13.4421 14,6001 1198,473) 1206,S151 Investment Total Expendlture (3,442) 14,6001 1198,473) {206,5151 Net Income/lExpendlture) nd net movement In funds for the year 12,4421 {4.6001 44,157 37.115 Loss on Investment 15,388 15,388 Net movement In fund$ 12,4421 14,600) 59,545 51.503 Reconclllatlon of Funds Total Funds Brought Forward Transfer between funds 50,400 134,6001 163,940 18,000) 214.340 42,600 Total Fund5 Carrled Forward 13,358 38.000 Z15,485 266,843 13. EMPLOYEE NUMBERS There are no employee5 in RAFA Kidzone Limited. -19-