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2024-03-31-accounts

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

21 October 2024 JDB/KT/L3238/161227

Drumahoe Childcare Limited

C/O Londonderry YMCA 51 Glenshane Road Drumahoe Londonderry BT47 3SF

Dear Trustees

Drumahoe Childcare Limited Audit for the year ended 31 March 2024

We have now completed the preparation of the Financial Statements for the above year and have concluded our audit of these also.

Please find attached for electronic signing:

We shall sign the Auditors’ Report after receiving the signed documents back.

We have enclosed copies of our updated engagement letters for electronic signing setting out our respective responsibilities – please read these carefully and if you are in agreement sign electronically.

If you have any queries regarding any of the above, please do not hesitate to contact Kirsty Taylor on 02877765534 or e-mail kirstytaylor@pfsandpartners.co.uk.

Yours sincerely

PFS & Partners Enc

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

Charity registration number NI100480

Company registration number NI039031 (Northern Ireland)

DRUMAHOE CHILDCARE LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Catriona Coyle
Lisa Dunn
Robert Dunn
Adrian Johnston
Gillian Simpson
Andrew Tate
Lorna Somers
Kerrie O'Hara
Secretary Kerrie O'Hara
Charity number NI100480
Company number NI039031
Registered office C/O Londonderry YMCA
51 Glenshane Road
Drumahoe
Londonderry
BT47 3SF
Auditor PFS & Partners Limited
16 Main Street
Limavady
BT49 0EU
Bankers Danske Bank
27 Glenshane Rd
Londonderry
BT47 2LN
Solicitors Turley Legal Ltd
Enterprise Causeway
Knocklynn Road
Coleraine
BT52 1WW

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

CONTENTS

Page
Trustees' report 1 - 3
Independent auditor's report 4 - 6
Statement of financial activities 7
Balance sheet 8
Statement of cash flows 9
Notes to the financial statements 10 - 19

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2024

The trustees present their annual report and financial statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "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 UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Public benefit

This document has been prepared based on the guidance provided by the Charity Commission for Northern Ireland and Trustees have had regard to the Commission's Public Benefit requirement statutory guidance. The trustees have paid due regard to guidance issued by the Charity Commission for Northern Ireland in deciding what activities the charity should undertake.

Achievements and performance

Significant activities and achievements against objectives

The objectives and activities of the charity are to advance the education of children aged 2 to 11 years old in Drumahoe, County Derry/Londonderry and the wider Derry City and Strabane District Council area, by providing care facilities for children from 7.45am to 6pm.

In 2024, Drumahoe Childcare launched its strategic plan, focusing on its vision, mission, and goals for the next three years. The plan aims to enhance and strengthen all aspects of our childcare services.

Building a culture of positive wellbeing for both staff and children is reinforced with the appointment of a Mental

Health Champion.

The fundraising committee held events throughout the year, including, supper with Santa, an Easter hamper, a sponsored walk and the Big Family breakfast. More events have been planned into 2024.

Financial review

Drumahoe Childcare Limited's financial year runs from 1 April to 31 March.

The Board of Directors is responsible for the control and management of the organisation's financial budget.

Drumahoe Childcare is a "not for profit “organisation that aims to become sustainable without grant assistance, using any surplus to reinvest into services and facilities.

Occupancy levels have steadily increased through the year.

Funding was received from Bright Start and Derry City and Strabane District Council.

We will remain cautious moving into the next financial year given the unpredictability of the economy in recent times.

Opportunities for investment and growth will remain an area for exploration.

Reserves policy

Our reserves policy is equivalent to 3 months' operations costs and would cover redundancies should that situation ever arise.

Plans for future periods

With the launch of the strategic plan, we have a clear vision of where we will be moving forward and are focusing on the goals outlined in this.

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Structure, governance and management

Drumahoe Childcare Limited has a Memorandum and Articles of Association and is incorporated under the Companies Act 2006.

We are a Company limited by guarantee, not having a share capital.

The organisation is controlled and directed by a Board of Trustees. The Manager is appointed to run the daily activities of the organisation and reports to the Board of Trustees at bi-monthly meetings. The quorum for a meeting is 5.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Catriona Coyle Lisa Dunn Robert Dunn Adrian Johnston Gillian Simpson Andrew Tate Lorna Somers Kerrie O'Hara

Recruitment and appointment of trustees

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Statement of trustees' responsibilities

The trustees, who are also the directors of Drumahoe Childcare Limited for the purpose of company law, 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 Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

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 statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Auditor

In accordance with the company's articles, a resolution proposing that PFS & Partners Limited be reappointed as auditor of the company will be put at a General Meeting.

The trustees' report was approved by the Board of Trustees.

Kerrie O'Hara Trustee

Lisa Dunn Trustee

16 October 2024

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DRUMAHOE CHILDCARE LIMITED

Opinion

We have audited the financial statements of Drumahoe Childcare Limited (the ‘charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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 misstated. If we identify such material inconsistencies or apparent material misstatements, 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 material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act (Northern Ireland) 2008 require us to report to you if, in our opinion:

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DRUMAHOE CHILDCARE LIMITED

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial 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 preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 65 of the Charities Act (Northern Ireland) 2008 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DRUMAHOE CHILDCARE LIMITED

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 8 of the Charities Act (Northern Ireland) 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

James Daniel Brolly (Senior Statutory Auditor) for and on behalf of PFS & Partners Limited

for and on behalf of PFS & Partners Limited 16 October 2024 Chartered Certified Accountants Statutory Auditor 16 Main Street Limavady BT49 0EU

PFS & Partners Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
3
-
25,655
Charitable activities
4
577,924
-
Other trading activities
5
-
2,607
Investments
6
968
-
Total income
578,892
28,262
Expenditure on:
Raising funds
7
-
981
Charitable activities
8
559,411
25,655
Other expenditure
656
-
Total expenditure
560,067
26,636
Net income and movement in
funds
18,825
1,626
Reconciliation of funds:
Fund balances at 1 April 2023
228,988
1,746
Fund balances at 31 March
2024
247,813
3,372		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
25,655
-
23,643
577,924
518,127
-
2,607
-
2,359
968
314
-
607,154
518,441
26,002
981
-
613
585,066
505,566
23,643
656
886
-
586,703
506,452
24,256
20,451
11,989
1,746
230,734
216,999
-
251,185
228,988
1,746		 Total
2023
£
23,643
518,127
2,359
314
544,443
613
529,209
886
530,708
13,735
216,999
230,734

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

BALANCE SHEET

AS AT 31 MARCH 2024

Notes
Fixed assets
Tangible assets
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Net assets excluding pension liability
Net assets
The funds of the charity
Restricted income funds
21
Unrestricted funds		 2024
£
20,895
211,538
232,433
(37,124)		 £
67,799
195,309
263,108
(11,923)
251,185
251,185
3,372
247,813
251,185		 2023
£
16,232
195,977
212,209
(29,473)		 £
68,447
182,736
251,183
(20,449)
230,734
230,734
1,746
228,988
230,734

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024, although an audit has been carried out under section 65 of the Charities Act (Northern Ireland) 2008.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 16 October 2024

Lisa Dunn

Trustee

Company registration number NI039031 (Northern Ireland)

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

Notes
Cash flows from operating activities
Cash generated from operations
25
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Relating to:
Cash at bank and in hand
Bank overdrafts included in creditors payable
within one year		 2024
£
(7,418)
968
(8,526)		 £
30,620
(6,450)
(8,526)
15,644
195,894
211,538
211,538
-		 2023
£
(6,540)
314
(9,131)		 £
29,017
(6,226)
(9,131)
13,660
182,234
195,894
195,977
(83)

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

Drumahoe Childcare Limited is a private company limited by guarantee incorporated in Northern Ireland. The registered office is C/O Londonderry YMCA, 51 Glenshane Road, Drumahoe, Londonderry, BT47 3SF.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements 5% straight line Fixtures, fittings & equipment 25% reducing balance Play park 10% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

3 Income from donations and legacies

Restricted Restricted
funds funds
2024 2023
£ £
Grants receivable 25,655 23,643
Grants receivable for core activities
Bright Start 21,655 21,654
DCSDC 4,000 1,989
25,655 23,643
4 Income from charitable activities
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Childcare income 577,924 513,974
Other income - 4,153
577,924 518,127
5 Income from other trading activities
Restricted Restricted
funds funds
2024 2023
£ £
Fundraising events 2,607 2,359
6 Income from investments
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Interest receivable 968 314

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

7 Expenditure on raising funds

Restricted Restricted
funds funds
2024 2023
£ £
Fundraising and publicity
Other fundraising costs 981 613

8 Charitable activities

Childcare
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds		 2024
£
579,666
5,400
585,066
559,411
25,655
585,066		 2023
£
523,809
5,400
529,209
505,566
23,643
529,209

9 Description of charitable activities

Charitable activities

Childcare

We provide care facilities for up to 100 children on a daily basis, Monday to Friday. We operate a daycare facility and an out of schools. We open daycare at 8am to 6pm every day throughout the year. Our out of schools opens at 2pm to 6pm weekdays but during the summer and school holidays, we open at 8am. We pick up and drop off daycare children for nursery and preschool while out of school children are collected from their schools at 2pm, 3pm and when activities are taking place, 4pm. They are brought to the club where they are given a snack and then go to their separate rooms. We operate 5 rooms: daycare has 2 rooms with children aged from 2 to 4 years. Out of schools has 3 rooms: P1-2, P3-4 and P5-7. There are room leaders and playworkers in each room. The planning of activities are carried out with the involvement of the children. All activities are age appropriate. We have a sports hall and play parks so that activities for their physical well being are provided all year round. This also improves their social well being and interpersonal skills. Parents then collect their children from us at whatever time suits. During the summer our activities are much more extensive and would also involve trips off site.

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

10 Support costs allocated to activities

Governance costs
Analysed between:
Charitable activities
11
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets		 2024
£
5,400
5,400
2024
£
4,200
8,064		 2023
£
5,400
5,400
2023
£
4,200
7,094

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

13 Employees

The average monthly number of employees during the year was:

Childcare staff
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2024
Number
28
2024
£
419,272
21,169
4,581
445,022		 2023
Number
27
2023
£
382,292
19,022
4,081
405,395

There were no employees whose annual remuneration was more than £60,000.

14 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

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DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

15
Tangible fixed assets
Leasehold
improvements
Fixtures,
fittings &
equipment
£
£
Cost
At 1 April 2023
47,000
67,918
Additions
-
7,418
At 31 March 2024
47,000
75,336
Depreciation and impairment
At 1 April 2023
5,875
55,675
Depreciation charged in the year
2,350
4,206
At 31 March 2024
8,225
59,881
Carrying amount
At 31 March 2024
38,775
15,455
At 31 March 2023
41,125
12,245
16
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
17
Loans and overdrafts
Bank overdrafts
Bank loans
Payable within one year
Payable after one year

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DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

18
Creditors: amounts falling due within one year
Notes
Bank loans and overdrafts
17
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
19
Creditors: amounts falling due after more than one year
Notes
Bank loans
17
20
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2024
£
10,017
4,726
83
13,523
8,775
37,124
2024
£
11,923
2024
£
4,581		 2023
£
10,100
2,786
31
11,156
5,400
29,473
2023
£
20,449
2023
£
4,081

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

21 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At
Bright Start
DCSDC
Fundraising income		 1 April
2023
Incoming
resources
Resources
expended
At 31 March
2024
£
£
£
£
-
21,655
(21,655)
-
-
4,000
(4,000)
-
1,746
2,607
(981)
3,372
1,746
28,262
(26,636)
3,372		 1 April
2023
Incoming
resources
Resources
expended
At 31 March
2024
£
£
£
£
-
21,655
(21,655)
-
-
4,000
(4,000)
-
1,746
2,607
(981)
3,372
1,746
28,262
(26,636)
3,372
3,372

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DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

21 Restricted funds (Continued)
Previous year: At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
Bright Start - 21,654 (21,654) -
DCSDC - 1,989 (1,989) -
Fundraising income - 2,359 (613) 1,746
- 26,002 (24,256) 1,746

22 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 April Incoming Resources At 31 March
2023 resources expended 2024
£ £ £ £
General funds 228,988 578,892 (560,067) 247,813
Previous year: At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
General funds 216,999 518,441 (506,452) 228,988
Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
2024 2024 2024
£ £ £
At 31 March 2024:
Tangible assets 67,799 - 67,799
Current assets/(liabilities) 191,937 3,372 195,309
Long term liabilities (11,923) - (11,923)
247,813 3,372 251,185

23 Analysis of net assets between funds

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DRUMAHOE CHILDCARE LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

23 Analysis of net assets between funds (Continued) (Continued)
Unrestricted Restricted Total
funds funds
2023 2023 2023
£ £ £
At 31 March 2023:
Tangible assets 68,447 - 68,447
Current assets/(liabilities) 180,990 1,746 182,736
Long term liabilities (20,449) - (20,449)
228,988 1,746 230,734
24 Related party transactions
There were no disclosable related party transactions during the year (2023 - none).
25 Cash generated from operations 2024 2023
£ £
Surplus for the year 20,451 13,735
Adjustments for:
Investment income recognised in statement of financial activities (968) (314)
Depreciation and impairment of tangible fixed assets 8,064 7,095
Movements in working capital:
(Increase)/decrease in debtors (4,663) 9,021
Increase/(decrease) in creditors 7,736 (520)
Cash generated from operations 30,620 29,017
26 Analysis of changes in net funds
At 1 April 2023 Cash flowsAt 31 March 2024
£ £ £
Cash at bank and in hand 195,977 15,561 211,538
Bank overdrafts (83) 83 -
195,894 15,644 211,538
Loans falling due within one year (10,017) - (10,017)
Loans falling due after more than one year (20,449) 8,526 (11,923)
165,428 24,170 189,598

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PFS & Partners Limited, Statutory Auditor Chartered Certified Accountants 16 Main Street Limavady BT49 0EU

Dear Sirs

The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of the charitable company’s financial statements for the year ended 31 March 2024. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief.

General

Internal control and fraud

Assets and liabilities

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Accounting estimates

Loans and arrangements

Legal claims

Laws and regulations

Related parties

Subsequent events

Going concern

Grants and donations

Restricted grants and donations are as follows:

Bright Start DCSDC

We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware.

Each director has taken all the steps that he ought to have taken as a director in order to make themself aware of any relevant audit information and to establish that you are aware of that information.

Yours faithfully

............................. Lisa Dunn Directors

............................. . Kerrie O’Hara Secretary

Signed on behalf of the board of directors / trustees

16 October 2024

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16 October 2024 JB/ZMCC/L3238/B

Strictly Private & Confidential For the attention of the Directors

Drumahoe Childcare Limited c/o Londonderry YMCA 51 Glenshane Road Drumahoe Londonderry BT47 3SF

Dear Sirs,

AUDIT FOR YEAR ENDED 31[ST] MARCH 2024

We have completed our audit of Drumahoe Childcare Limited for the year ended 31 March 2024 carried out over the period June 2024 to September 2024, and would like to bring the following issue to your attention:-

If you should have any queries regarding the above, please do not hesitate to contact us.

Yours faithfully,

PFS & Partners Limited

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18 June 2024 JB/ZMCC/L3238

FAO Trustees Drumahoe Childcare Limited C/O Londonderry YMCA 51 Glenshane Road Drumahoe BT47 3SF

Dear Trustees

APPENDIX 1A – SCHEDULE OF PROFESSIONAL SERVICES: AUDIT OF THE FINANCIAL STATEMENTS

1 Responsibilities of trustees and auditors

You also have a responsibility not to approve these financial statements unless you are satisfied that they give a true and fair view.

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In addition, we have a statutory responsibility to report by exception if, in our opinion:

If we have nothing to report in respect of the above matters we will include a statement in our report confirming this.

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significance to the CCNI in the exercise of their powers of inquiry into, or acting for the protection of, charities.

2 Scope of audit

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We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. [We also communicate key audit matters in our auditor’s report][1] .

1 Auditors can choose to communicate key audit matters.

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3 Communication

The formal communications set out above are the minimum required to comply with auditing standards. We shall of course contact you on a more frequent and regular basis regarding both audit and other matters.

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4 Limitation of liability

You have agreed that our liability as auditors to the company will be limited in accordance with sections 532 to 538 of the Companies Act 2006.

We specifically draw your attention to the limitation of liability paragraphs in our standard terms and conditions which set out the basis on which we limit our liability to you and to others. You should read this in conjunction with the limitation of third party rights paragraphs in our standard terms and conditions which exclude liability to third parties. These are important provisions which you should read and consider carefully.

There are no Third Parties that we have agreed should be entitled to rely on the work done pursuant to this engagement letter.

Yours sincerely

PFS & Partners Limited

Enc

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We confirm that we have read and understood the contents of this letter and the related terms and conditions and agree that it accurately reflects our fair understanding of the services that we require you to undertake.

Signed.................................................................. Date: 18 June 2024

Kerrie O’Hara

Signed.................................................................. Date: 18 June 2024 Lisa Dunn

For and on behalf of

Drumahoe Childcare Limited

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PFS & Partners These terms and conditions should be read alongside the privacy notice.

Introduction

These terms and conditions set out the general terms under which we undertake our business. The specific conditions relating to particular assignments will be covered in separate letters of engagement.

Applicable law

This engagement letter, the schedule of services and our standard terms and conditions of business are governed by, and should be construed in accordance with, the law and practice of Northern Ireland. Each party agrees that the Courts of Northern Ireland will have exclusive jurisdiction in relation to any claim, dispute or difference concerning this engagement letter and any matter arising from it. Each party irrevocably waives any right to object to any action being brought in those Courts, to claim that the action has been brought in an inappropriate forum, or to claim that those courts do not have jurisdiction.

Authorisation and registration

PFS & Partners are registered with the Association of Chartered Certified Accountants as chartered certified accountants and can be found on the register of members at http://members.accaglobal.com/en/find-an-accountant.

We are registered as auditors by the ACCA in the UK and details of our registration can be found at www.auditregister.org.uk under registration number 0720587 or at http://members.accaglobal.com/en/find-an-accountant.

Client identification and verification

As with other professional services firms, we are required to identify and verify our clients for the purposes of the UK anti-money laundering legislation. Save in exceptional circumstances we cannot start work until this requirement has been met. We may request from you, and retain, such information and documentation as we require for these purposes and/or make searches of appropriate databases including ID verification software.

Client monies

We may, from time to time, hold money on your behalf. Such money will be held in trust in a client bank account, which is segregated from the firm's funds. The account will be operated, and all funds dealt with, in accordance with the Clients' Monies Rules of the Association of Chartered Certified Accountants. These rules can be found on the ACCA website at http://www.accaglobal.com/en.html.

We will return monies held on your behalf promptly as soon as there is no longer any reason to retain those funds. If any funds remain in our client account that are

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unclaimed and the client to which they relate has remained untraced for five years or we as a firm cease to practise, then we may pay those monies to a registered charity.

Fees paid by you in advance for professional work to be performed and clearly identifiable as such shall not be regarded as clients' monies.

Commissions and other benefits

In some circumstances we may receive commissions and/or other benefits for introductions to other professionals or in respect of transactions which we arrange for you. Where this happens, we will notify you in writing of the amount and terms of payment and receipt of any such commissions or benefits.

Confidentiality

Communication between us is confidential. We shall take all reasonable steps not to disclose your information except where we are required to and as set out in our privacy notice. Unless we are authorised by you to disclose information on your behalf this undertaking will apply during and after this engagement.

We may, on occasions, subcontract work on your affairs to other tax or accounting professionals. The subcontractors will be bound by our client confidentiality and security terms.

Conflicts of interest

If there is a conflict of interest in our relationship with you or in our relationship with you and another client that is capable of being addressed successfully by the adoption of suitable safeguards to protect your interests, then we will adopt those safeguards.

Where conflicts are identified that cannot be managed in a way that protects your interests then we regret that we will be unable to provide further services. If this arises, we will inform you promptly. We reserve the right to act for other clients whose interests are not the same as or are adverse to yours, subject, of course, to the obligations of confidentiality referred to above.

Consumer credit

The firm is not authorised by the Financial Conduct Authority (FCA) for non-credit related activities. We fall within the ACCA DPB regime (FSMA 2000 Part 20) for incidental Consumer Credit services that we provide to you as part of your professional accounting and tax services.

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Data Protection

We confirm that we will comply with the provisions of the General Data Protection Regulation (GDPR) when processing personal data about you and your employees where appropriate.

Processing means:

The information we obtain, process, use and disclose will be necessary for:

This includes, but is not limited to, purposes such as updating and enhancing our client records, analysis for management purposes and statutory returns.

In regard to our professional obligations, we are a member firm of the Association of Chartered Certified Accountants (ACCA). Under the ethical and regulatory rules of ACCA we are required to allow access to client files and records for the purpose of maintaining our membership of this body.

Further details on the processing of data are contained in our privacy notice, which should be read alongside these terms and conditions.

Disengagement

Should we resign or be requested to resign we will normally issue a disengagement letter to ensure that our respective responsibilities are clear.

Should we have no contact with you for a period of 1 year or more, we may issue to your last known address a disengagement letter and thereafter cease to act.

We reserve the right following termination for any reason to destroy any of your documents that we have not been able to return to you after a period of six months unless other laws or regulations require otherwise.

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Electronic and other communication

As instructed, we will communicate with you and with any third parties you instruct us to as set out in our covering letter and privacy notice via email or by other electronic means. The recipient is responsible for virus-checking emails and any attachments.

With electronic communication there is a risk of non-receipt, delayed receipt, inadvertent misdirection, or interception by third parties. We use virus-scanning software to reduce the risk of viruses and similar damaging items being transmitted through emails or electronic storage devices. However, electronic communication is not totally secure, and we cannot be held responsible for damage or loss caused by viruses, nor for communications that are corrupted or altered after despatch. Nor can we accept any liability for problems or accidental errors relating to this means of communication, especially in relation to commercially sensitive material. These are risks you must accept in return for greater efficiency and lower costs. If you do not wish to accept these risks, please let us know and we will communicate by hard copy, other than where electronic submission is mandatory.

Any communication by us with you sent through the post or DX system is deemed to arrive at your postal address two working days after the day that the document was sent.

When accessing information held electronically by HMRC, we may have access to more information than we need and will only access records reasonably required to carry out the contract.

You are required to keep us up to date with accurate contact details at all times. This is important to ensure that communications and papers are not sent to the incorrect address.

Fees and payment terms

Our fees may depend not only upon the time spent on your affairs but also on the level of skill and responsibility, and the importance and value of the advice that we provide, as well as the level of risk.

If we provide you with an estimate of our fees for any specific work, then the estimate will not be contractually binding unless we explicitly state that that will be the case.

Where requested, we may indicate a fixed fee for the provision of specific services or an indicative range of fees for a particular assignment. It is not our practice to identify fixed fees for more than a year ahead as such fee quotes need to be reviewed in the light of events. If it becomes apparent to us, due to unforeseen circumstances, that a fee quote is inadequate, we reserve the right to notify you of a revised figure or range and to seek your agreement thereto.

In some cases, you may be entitled to assistance with your professional fees, particularly in relation to any investigation into your tax affairs by HMRC. Assistance may be provided through insurance policies you hold or via membership

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of a professional or trade body. Other than where such insurance was arranged through us, you will need to advise us of any such insurance cover that you have. You will remain liable for our fees regardless of whether all or part are liable to be paid by your insurers.

We will bill periodically, and our invoices are due for payment upon within 30 days of issue. Our fees are exclusive of VAT, which will be added where it is chargeable. Any disbursements we incur on your behalf and expenses incurred in the course of carrying out our work for you will be added to our invoices where appropriate.

Unless otherwise agreed to the contrary, our fees do not include the costs of any third party, counsel, or other professional fees.

It is our normal practice to issue applications for payment when dealing with continuous or recurring work. The payment terms for applications for payment are the same as for invoiced fees. A VAT invoice will be issued to you upon receipt of your payment.

Clients can request to pay by monthly standing order and to periodically adjust the monthly payment by reference to actual billings.

You authorise us to settle our agreed fees from any money held on your behalf in the client account.

Where this contract exists between us and a purchaser acting in the course of a business, we reserve the right to charge interest on late-paid invoices at the rate of 8% above the Bank of England base rate under the Late Payment of Commercial Debts (Interest) Act 1998. We also reserve the right to suspend our services or to cease to act for you on giving written notice if payment of any fees is unduly delayed. We intend to exercise these rights only where it is fair and reasonable to do so.

If you do not accept that an invoiced fee is fair and reasonable you must notify us within 21 days of receipt, failing which you will be deemed to have accepted that payment is due.

On termination of the engagement, you may appoint a new adviser. Where a new adviser requests professional clearance and handover information we reserve the right to charge you a reasonable fee for the provision of handover information.

Implementation

We will only assist with implementation of our advice if specifically instructed and agreed in writing.

Intellectual property rights

We will retain all copyright in any document prepared by us during the course of carrying out the engagement save where the law specifically provides otherwise.

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Interpretation

If any provision of this engagement letter, schedules of services or standard terms and conditions is held to be void, then that provision will be deemed not to form part of this contract and the remainder of this agreement shall be interpreted as if such provision had never been inserted.

In the event of any conflict between these terms of business and the engagement letter or appendices, the relevant provision in the engagement letter or schedules will take precedence.

Internal disputes

If we become aware of a dispute between the parties who own or are in some way involved in the ownership and management of the business, it should be noted that our client is the business, and we would not provide information or services to one party without the express knowledge and permission of all parties.

Investment services

Investment business is regulated under the Financial Services and Markets Act 2000 and the Financial Services Act 2012.

If, during the provision of professional services to you, you need advice on investments, including insurances, we may have to refer you to someone who is authorised by the Financial Conduct Authority or the Prudential Regulation Authority or licensed by a Designated Professional Body as we are not authorised to give such advice.

Lien

In so far as permitted to do so by law or professional guidelines, we reserve the right to exercise a lien over all funds, documents and records in our possession relating to all engagements for you until all outstanding fees and disbursements are paid in full.

Limitation of liability

We will provide our services with reasonable care and skill. Our liability to you is limited to losses, damages, costs, and expenses directly caused by our negligence or wilful default.

Exclusion of liability for loss caused by others

We will not be liable if such losses, penalties, interest, or additional tax liabilities are caused by the acts or omissions of any other person or due to the provision to us of incomplete, misleading or false information, or if they are caused by a failure to act on our advice or a failure to provide us with relevant information.

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In particular, where we refer you to another firm whom you engage with directly, we accept no responsibility in relation to their work and will not be liable for any loss caused by them.

Exclusion of liability in relation to circumstances beyond our control

We will not be liable to you for any delay or failure to perform our obligations under this engagement letter if the delay or failure is caused by circumstances outside our reasonable control.

- Exclusion of liability relating to non disclosure or misrepresentation

We will not be responsible or liable for any loss, damage or expense incurred or sustained if information material to the service we are providing is withheld or concealed from us or misrepresented to us.

This exclusion shall not apply where such misrepresentation, withholding or concealment is or should (in carrying out the procedures that we have agreed to perform with reasonable care and skill) have been evident to us without further enquiry beyond that which it would have been reasonable for us to have carried out in the circumstances.

Indemnity for unauthorised disclosure

You agree to indemnify us and our agents in respect of any claim (including any claim for negligence) arising out of any unauthorised disclosure by you or by any person for whom you are responsible of our advice and opinions, whether in writing or otherwise. This indemnity will extend to the cost of defending any such claim, including payment at our usual rates for the time that we spend in defending it.

Limitation of aggregate liability

Where the engagement letter specifies an aggregate limit of liability, then that sum shall be the maximum aggregate liability of this firm, principals, partners, directors or members agents and employees to all persons to whom the engagement letter is addressed and also any other person that we have agreed with you may rely on our work. By signing the engagement letter, you agree that you have given proper consideration to this limit and accept that it is reasonable in all the circumstances. If you do not wish to accept it, you should contact us to discuss it before signing the engagement letter.

You have agreed that you will not bring any claim of a kind that is included within the subject of the limit against any of our principals/partners/directors/members or employees, on a personal basis.

Limitation of Third-Party Rights

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work. We accept no responsibility to third parties, including any group company to whom the engagement letter is not addressed, for any advice, information or material produced as part of our work for you which you make available to them. It may not be used or relied upon for any other purpose or by any other person other than you without our prior written consent. A party to this agreement is the only person who has the right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.

If our advice is disclosed to any third party (with or without our consent), then we accept no responsibility or liability to that third party for any consequences that may arise to them, should they rely on the advice.

If it is proposed that any documents or statement which refer to our name are to be circulated to third parties, please consult us before they are issued.

Money Laundering Regulations 2017

In accordance with the Proceeds of Crime Act, The Terrorism Act , Money Laundering Regulations 2017 and The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 you agree to waive your right to confidentiality to the extent of any report made, document provided, or information disclosed to the National Crime Agency (NCA).

You also acknowledge that we are required to report directly to the NCA without prior reference to you or your representatives if during the course of undertaking any assignment the person undertaking the role of Money Laundering Reporting Officer becomes suspicious of money laundering.

As with other professional services firms, we are required to have appropriate riskbased policies and procedures for assessing and managing money laundering risks: this applies at the start of any business relationship and through the lifetime of the relationship. This includes undertaking appropriate customer due diligence. We may request from you, and retain, such information and documentation as we require for these purposes and/or make searches of appropriate databases. If we are not able to obtain satisfactory evidence of your identity, we will not be able to proceed with the engagement.

Copies of such records created as part of the client due diligence process, including any non-engagement documents relating to the client relationship and ongoing monitoring of it, will be retained by us for a period of five years after we cease to act for the business unless we are required to retain them under statutory obligation, or to retain them for legal proceedings, or you consented to the retention in which case the records will be retained for not more than 10 years.

Notification

We shall not be treated as having notice, for the purposes of our audit/accounts/tax responsibilities, of information provided to members of our firm other than those engaged on the specific assignment (for example, information provided in connection with accounting, taxation, and other services).

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Period of engagement and termination

Unless otherwise agreed in the engagement covering letter our work will begin when we receive your implicit or explicit acceptance of that letter. Except as stated in that letter we will not be responsible for periods before that date.

Each of us may terminate this agreement by giving not less than 21 days’ notice in writing to the other party except where you fail to cooperate with us or we have reason to believe that you have provided us or HMRC with misleading information, in which case we may terminate this agreement immediately. Termination will be without prejudice to any rights that may have accrued to either of us prior to termination.

In the event of termination of this contract, we will endeavour to agree with you the arrangements for the completion of work in progress at that time, unless we are required for legal or regulatory reasons to cease work immediately. In that event, we shall not be required to carry out further work and shall not be responsible or liable for any consequences arising from termination.

If you engage us for a one-off piece of work (for example advice on a one-off transaction or preparation of a tax return for one year only) the engagement ceases as soon as that work is completed. The date of completion of the work is taken to be the termination date and we owe you no duties and we will not undertake further work beyond that date.

Where recurring work is provided (for example ongoing compliance work such as the completion of annual tax returns) the engagement ceases on the relevant date in relation to the termination as set out above. Unless immediate termination applies, in practice this means that the relevant termination date is:

We owe you no duties beyond the date of termination and will not undertake any further work.

Professional rules and statutory obligations

We will observe and act in accordance with the by-laws, regulations, and ethical guidelines of the Association of Chartered Certified Accountants (ACCA) and will accept instructions to act for you on this basis.

You are responsible for bringing to our attention any errors, omissions, or inaccuracies in your returns that you become aware of after the returns have been submitted in order that we may assist you to make a voluntary disclosure.

In particular, you give us the authority to correct errors made by HMRC where we become aware of them. In addition, we will not undertake tax planning which breaches professional conduct in relation to taxation. We will therefore comply with the general anti-abuse rule and the targeted anti-avoidance rule. We will not be liable

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for any loss, damage or cost arising from our compliance with statutory or regulatory obligations. You can see copies of these requirements at our offices.

The requirements are also available online at www.accaglobal.com/en.html.

The implications of professional body membership as it relates to GDPR are set out in the privacy notice, which should be read alongside these standard terms and conditions of business.

Provision of Services Regulations 2009

In accordance with our professional body rules, we are required to hold professional indemnity insurance. Details of our current professional indemnity insurer are available on request and our level of cover is £2,000,000. Territorial coverage is worldwide excluding business carried out from the USA or Canada and excludes any action for a claim brought in any court in the USA or Canada

Quality of service

We aim to provide a high quality of service at all times. If you would like to discuss with us how our service could be improved or if you are dissatisfied with the service that you are receiving, please let us know by contacting Seamus Farren.

We undertake to look into any complaint carefully and promptly and to do all we can to explain the position to you. If we do not answer your complaint to your satisfaction, you may take up the matter with the Association of Chartered Certified Accountants. This should be done promptly and, in any event, no later than 6 months after exhausting our procedures.

Should ACCA consider a complaint appropriate for conciliation, it is competent to offer alternative dispute resolution through its Conciliation Service. ACCA’s website address is www.accaglobal.com. Please note that, under the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) conciliation process we are not obliged to submit to ACCA’s conciliation process.

Reliance on advice

We will endeavour to record all advice on important matters in writing. Advice given orally is not intended to be relied upon unless confirmed in writing. Therefore, if we provide oral advice (for example, during the course of a meeting or a telephone conversation) and you wish to be able to rely on that advice, you must ask for the advice to be confirmed by us in writing. However, bear in mind that advice is only valid at the date it is given.

Retention of papers

February 2022

Docusign Envelope ID: 32567597-647D-486E-B696-5D05AE5C1808

You have a legal responsibility to retain documents and records relevant to your tax affairs. During the course of our work, we may collect information from you and others relevant to your tax affairs. We will return any original documents to you if requested.

When we cease to act for you, we will seek to agree the position on access to cloudaccounting records to ensure continuity of service. This may require you to enter direct engagements with the software providers and pay for that service separately. Documents and records relevant to your tax affairs are required by law to be retained as follows:

Individuals, trustees, and partnerships

Companies, LLPs, and other corporate entities

While certain documents may legally belong to you, we may destroy correspondence and other papers that we store, electronically or otherwise, which are more than seven years old. This includes your documents if they have not been reclaimed by you within the seven-year period. You must tell us if you require the return of any specific document or their retention for a longer period.

You should retain documents that are sent to you by us as set out in the privacy notice, which should be read alongside these terms and conditions.

Timetable

The services we undertake to perform for you will be carried out on a timescale to be determined between us on an ongoing basis.

The timing of our work will in any event be dependent on the prompt supply of all information and documentation as and when required by us.

February 2022