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 #213 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 M*ck•vY•¥ftg LLP 14 Park Natti*wh•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.