Company Reglstratlon Number: N1601526 Charity Registration Number: 101018 Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Annual Report and Audited Financial Statements For the year ended 30 June 2023 COfvIPANIES HOUSE 2 1 DEC 2023 8£LFAST * )CIU2L6H• 2111212023 COMPANIES HOUSE JNI
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Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Contents For the ear ended 30 June 2023 Page General Information Dlrectors, Report Independent Auditor's Report to the directors of Ralnbow Daycare (Eglish) Ltd 9-13 Statement of Flnanclal Activlties 14 Statement of Flnancial Position 15-16 Statement of Cash Flows 17 Notes to the Financial Statements 18-27 CavanaghKel
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) GENERAL INFORMATION Board of Dlrectors Martina 8ateson Clare Daly Fionnuala Daly Linda Daly (resigned 28 November 2022) Eirnear Donaghy Catriona Donnelly Colette Fay Catherine Jones {resSgned 28 November 2022) Orla Kellv Sophia Kerr Alexandra McKee (resigned 28 November 2022) Company Secretary Fionnuala Daly{appolnted on 28 November 2022) Registered olTice Rainbow Community Childcare 2 Stiloga Road Eglish Dungannon County, Tyrone 8T71 7DW Company registration number N1601526 Charlty reglstratlon number 101018 Independent examiners CavanaghKelly Chartered Accountants 36-38 Northland Row Dungannon Co Tyrone BT71 6AP Bankers Bank of Ireland Market Street Magherafelt Co.Londonderry BT45 6EE CavanaghKel
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) DIRECTORS, REPORT For the year ended 30 June 2023 The Directors, who are the trustees for the purpose of charity law, have pleasure in presenting their report and the unaudited financial statements of the charitable company for the year ended 30 June 2023. The financial statements have been prepared in accordance with the Statement of Recornmended Prattice "Accounting and Reporting by Charities" (FRS 102), United Kingdom Generally Accepted Accounts'ng Practice and the CompanSes Act 2006. Reference and Admlnlstratlon DetaFIs The reference and administration details of the charfty are as shown on page 3. Objertives and Actlvitles The key aims of Rainbow Daycare (Egllsh) Ltd are to allow young people to develop thelr own optimum level of independence, The principal activity of the charity 15 to enhance development and education of young children through: -The provislon of hlgh quallty day care and chlldcare; Working to ensure that quality day care and childcare is available to children and families regardless of rneans, race, disability, gender, religion, belief or any other factor. Identifying the wider support needs of children and families and to seek to ensure that such needs are met; Encouraging, enabllng and supportlng the Involvement of parents and carers in their children learning and developrnent. and -contributing to the professional development of those working in daycare and childcare; and Encouragin9 and enabling the Involvement of parents, carers and the wider community in the affalrs of the Charlty. Public Benefit Statement The Directors of Rainbow Daycare (Eglish) Ltd confirm that they have complied wlth thelr duty under section 4{6) of the Charities Act (Northern Ireland) 2022 to have regard to the Charlty Commission for Northem Ireland's guidance on public benefit and that the public benefit requirement has informed the activities of the charitable company in the year ended 30 June 2023. Achievements and Performance The Directors are confident that the charitable cornpany continues to meet its perfomance objectives to benefit the local comrnunity. The charitable company continues to receive funding from local bodie5, Rainbow Daycare (Eglish) Ltd is registered with the Southern Health and Social Care Trust and Is inspected by them annually to ensure that high quality care and education is provided for all children in our Centre. We are also a member of the "Early Years Organisation for Young Children" CavanaghKel
DIRECTORS, REPORT For the year ended 30 June 2023 Rainbow Oaycare (Eglish) Ltd currently offers a cornbined capacity of 151 registered places, Sl for playgroup, 60 for out of school and 40 for daycare. The centre has been designed to meet the highest childcare standards, meeting with Trust regulations and the environmental health standards stipulated for a day care provider. All necessary Registrations are held and are reviewed on a regular basis by the regulatory bodies to ensure the hlghest standards are being malntained. With a high standard of staff training and experience, the centre is provlding an opportunity for others to learn and become trained in childcare, both as workers and volunteers in a rural area. The centre supports the cross comrnunlty requirements of the charity given its neutral location in the community. As is the case with many other rural comrnunities in Northern Ireland, these children are dominated by one tradition that experiences Ilttle contact with slmilar group5 from other traditions. This can limit their ability to address conflict and division, and can also hinder regeneration or developrnent in that locality. The centre helps address this imbalance. The playgroup provides pre-school senlices to children aged 3 to 4 years. The Playgroup implements 'High/Scope' for 3-4 year olds. This is a quality approach to early childhood care and education and a recognised standard with Early Years and Social Sepiices. 'High/Scope' identifies and builds on children's strengths, interests and abilities and was adapted by educators to meet the needs of local communities. 'High/Scope' has been shaped and developed by research over many years and is used Internatlonally In a varlety of settlngs including daycare, playgroups, nurserles and primary schools. Thls best practlce approach 'High/Scope' is also being implemented for the babies and toddlers who attend full daycare. The playgroup places are funded through the PEGS programrne. Out of School Club commenced In September 2012, whlch operates from 2.00pm to 6.00pm during term time and caters for children from 4 years to 12 years. The out of school club operates from 9.00am - 6.00pm during school holidays. The Out of School Club provides a range of activities which encourage active play, exerclse and development of hobbies and sports. F•nancial Review Financial Performance The financial performance was in line with the Board of Directors, expectatlons, The charitable company remains in a sound financlal position at the year end. The results for the year are set out in detail on pages 14-27. The charitable company retumed net outgoing resources for the year of £25,570 (2022: net Incoming resources of £85,982). At 30 June 2023, the total funds of the charitable company amounted to £751,806 {2022: £777,376) comprising of £431,208 (2022. £449,462) of unrestrirted and £320,S98 (2022: £327,914) of restricted funds. Prinopal sources of funding and how this has supported the key objectives of the charitable company are disclosed in the notes to the financial statements. CavanaghKelV
DIRECTORS. REPORT For the year ended 30 June 2023 Reserves Policy The charitable company does not maintain a formal reserves policy however the Board of Directors continue to monitor the level of reserves held by the charitable company and a satisfied that these are adequate to meet any unforeseen expenditure incurred. The dlrectors feel there Is no need for a formal reserdes pollcy as Rainbow Daycare (Eglish) Ltd Is n intome generating charity and only rely on grant Sncome for a small proportion of Income. The charitable company has free reserrfes of £16,098, the equlvalent of 2 weeks unrestrlcted expenditure (2022: 30,480 - 4 weeks). structure, Governance and Management Oryanlsatlonal structure The charitable company is a company limited by guarantee, not havlng a share capltal. The cornpany was established under a Memorandum of Assoclatlon which established the objects and powers of the company and Is governed under Its Artlcles of AssoclatS0n. Any person wishing to becorne a Director must apply in wrSting prior to the Annual General Meetlng. A vote Is then taken at the Annual General Meetlng as to whether that person Is ppolnted. Dirertors The Directors durlng the year are the same as the Dlrectors as Ilsted on page 3. Taxation Status The charitable company is recognised as a charity by HM Revenue & Customs. Accordlngly, the charltable company has avalled of the exemptions contained in Chapter 3 Part 11 Corporation Taxes Act 2010 and Section 256 Taxation of Chargeable Galns Act 1992. CavanaghKel
DIRECTORS. REPORT For the year ended 30 June 2023 Dlrectors, Responslb115tles Statements The Oirectors are responsible for preparing the Directors. Report and the financlal statements in ccordance wlth applicable law and Unlted Klngdom Accounting Standards {Unlted Klngdom Generally Accepted Accountlng Practlce). Company law requlres the Dlrectors to prepare flnanclal statements for each financial year whlch give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and applicatlon of resources, Including the income and expendSture, of the charltable company for that year. In preparlng these flnancial statements the Directors are requlred to: •Eklect sultable accountlng polScles and apply them conslstentlyj •absenie the methods and princlples In the Charitles SORP (FRS 102); •&ke Judgements and estlmates that are reasonable and prudent, State whether appllcable UK Accountlng Standards have been followed, subject to any materi departures dlsclosed and explained Sn the finanoal statements. and Prepare the financial statements on the golng concern basls unless It Is Inapproprlate to presu that the charltable company VAII contlnue In operatlon. The Dlrectors are responslble for keeplng adequate accountlng records that dlsclose wlth reasonable accuracy at any tlme the financlal posltlon of the charltable cornpany and to enable them to ensure that the financial statements comply with the Companles Act 2006. They are also responslble for safeguardlng the assets of the charltable company and hence for taklng reasonable . steps for the preventlon and detectlon of fraud and other Irregularltles. Statement of Dlsclosure af Informatlon to Audltor In so far as the Dlrectors, who held office at the date of approval of these financial statements, are aware.. there Is no relevant audlt Informatlon of whlch the charltable company's audltor Is unaware; and the Dlrectors have taken all steps that they ought to have taken to make themselves aware of any relevant audit Informatlon and to establlsh that the audltor Is aware of that Informatlon. CavanaghKelV
DIRECTORS, REPORT For the year ended 30 June 2023 Small Compan6es Exemptlon The above report has been prepared In accordance wlth the special provisions relatlng to small companles within Part 15 of the Companles Act 2006. Thls report was approved by the Board of Directors on 27 November 2023 and slgned on Its behalf Catrlona Donnelly Director Company Reglstratlon Number: N1601526 Charity Re9lstratlon Number: 101018 CavanaghKel
Rainbow Daycare (Eglish) Ltd . (Charitable Company Limited by Guarantee) Independent Auditor's report to the Directors of Rainbow Daycare (Eglish) Ltd for the year ended 30 June 2023 Opinion We have audited the financial statements of Rainbow Daycare (Eglish) Ltd ('the charitable company,) for the year ended 30 June 2023 which comprise the Statement of Financlal Activities, the Statement of Financlal Position, the Statement of Cash Flows and the related notes to the financlal statements, Including a summary of significant accounting policies. The flnanclal reporting framework that has been applied in their preparation is applicable law and United Kingdorn Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). Thls report Is made solely to the charitable company's Dlrertors, as a body, in accordance wlth Chapter 3 of Part 16 of the Cornpanies Act 2006. Our audit work has been undertaken 50 that we mlght state to the charitable company's Directors 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 charitable company and the charitable company's Directors as a body, for our audit work, for this report, or for the opinlons we have forrned. In our opinion the financial statements.. -give a true and fair view of the state of the charitable company's affairs as at 30 June 2023 and of its total incoming resources and expenditure of resources, including its income and expenditure, for the year then ended. -have been properly prepared in accordance with Unlted Kingdom Generally Accepted Accounting Practice; and -have been prepared in accordance wlth the requirements of the Companies Act 2006. 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 company in accordance with ethical requirements that are relevant to our audit of the financial staternents in the UK, Includlng the FRC'S Ethical Standard, and we have fulfilled our other ethlcal responsibllities In accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our oplnlon. CavanaghKel
Independent Auditor's report to the Directors of Rainbow Daycare (Eglish) Ltd for the year ended 30 June 2023 Conclusions relating to going concem We have nothing to report in respect of the followlng matters in relatlon to which ISAS (UK) require us to report to you where: the directors, use of the going concern basis of accounting in the preparation of the financial statements Is not appropriate; or the directors have not disclosed in the financial statements any Identlfied materlal uncertaintles that may cast significant doubt about the charitable company's ability to continue to adopt the going concem basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. other Informatlon The directors are responsible for the other information. The other Information comprises the inforrnation included in the Directors, Report, other than the financial statements and our Auditor's Report thereon. Our oplnlon on the flnancial 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. In connectlon with our audlt of the ftnanc5al statements, our responslbllity Is to read the other Informatlon and, In dolng so, conslder whether the other Inforrnation is materially Inconsistent with the financial statements or our knowledge obtained In the audit, or othenwise appears to be materially misstated. If we Identlfy such material inconsistencies or apparent materlal misstatements, we are required to determine whether there is a material misstatement In the financial statements or a materlal misstatement of the other Information, If, based on the work we have performed, we conclude that there Is a material mlsstatement of thls other information, we are required to report that fact. we have nothlng to report In this regard. Op5nlons on other matters prescribed by the Companies Art 2006 In our oplnlon, based on the work undertaken In the course of the audlt: -CDe information given in the Directors, Report for the financial year for which the financial statements are prepared is conslstent wlth the financial statements. and -fDe Directors, Report has been prepared in accordance with applicable legal requirements. CavanaghKel 10
Independent Auditor's report to the Directors of Rainbow Daycare (Egllsh) Ltd for the year ended 30 June 2023 Matters on whlch we are requlred to report by exception In the light of our 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, Report. We have nothing to report in respect of the followlng matters Sn relation to whlch the Cornpanies Act 2006 requires us to report to you if, in our opinlon: adequate accounting records have not been kept, or returns adequate for our audit have not be< received from branches not visited by us. or •fbe financlal statements are not In agreement with the accountlng records and returns. or •&rtain dlsclosures of directors, remuneration specified by law are not rnade. or •& have not received all the information and explanatlons we requlre for our audlt, or the directors were not entitled to prepare the flnanclal statements In accordance wlth the srnz companles, regime and take advantage of the small cornpanies, exemption In preparlng the Dlrectors, Report. Responsibilities of Director5 As explalned rnore fully in the Directors, Responsibilities Statement, the directors (who are also the trustees of the charitable company for the purpose of charity law), are responsible for the preparation of the financial statements and for being satlsfied that they give a true and fair view, and for such internal control as the Directors determlne Is necessary to enable the preparatlon of flnancial statements that are free frorn material rnisstatement, whether due to fraud or error. In preparlng the flnancial statements, the directors are responsible for assessing the company's abillty to contlnue as a going concern, dlsclosing, as applicable, matters related to going concern and uslng the going concern basis of accounting unless the directors elther intends to Ilquidate the charitable company or to cease operatlons, or has no realistic alternative but to do so. CavanaghKel 11
Independent Auditor's report to the Directors of Rainbow Daycare {Eglish) Ltd for the year ended 30 June 2023 Explanation as to what extent the audlt was consldered capable of detectlng Srregularities, including fraud Irregularities, 5ncluding fraud, are instances of non-compliance with laws and regulations, The objectives of our audit in respect of fraud are to assess the risk of material misstaternent due to fraud, design and Implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audlt. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the charitable company. In IdentSfylng and assessing risks of material mlsstatement in respect of irregularities, includlng fraud and non-compliance with laws and regulations, our procedures included the following: We obtained understanding of the legal and regulatory requirements applicable to the charitable company's financial statements and considered the most significant are the Companies Act 2006, FinancSal Reporting Standards (FRS102), Grant funding bodies regulatlon and UK taxatlon legislation; We have assessed the risk of material mlsstaternent of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; We enquired of management and those charged with governance as to any known Instances of non-compliance or suspected non-compllance with laws and regulations" -&rtain disclosures of directors, remuneration specified by law are not made; or Understanding the internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations; and Discussions amongst the audlt engagement team regarding how fraud might occur In the financlal statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur.. timing of revenue recognition, recognition of grant income and management override. The audit response to risks identified included: Reviewing the financial statements disclosures and testlng to support5ng documentatlon to assess compliance with the relevant laws and regulations above; Performing analytical procedures to identify any unusual or unexperted relationshlps that may indicate risk of material misstatement due to fraud. In addressing the risk of fraud through management override of controls, testing the approprlateness of Journal entries an(F other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactlons that are unusual or outside the normal course of business. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors, Report. CavanaghKel 12
Independent Auditor's report to the Directors of Rainbow Daycare (Eglish) Ltd for the year ended 30 June 2023 Auditor's responsibilitles for the audit of the financial statements Our objectlves are to obtain reasonable assurance about whether the flnancial statements as a whole are free from material misstatement, whether due to fraud or error, and to Issue an Auditorfs Report that includes our oplnlon. Reasonable assurance Is a hlgh level of assurance, but is not a guarantee that an audit conducted In accordance wlth ISAS {UK> wlll always detect a material mlsstatement when It exlsts. Misstatements can arlse from fraud or error and are considered materlal if, individually or in aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these flnancial statements. Auditor's responslbilities for the audit of the flnancial statements (Contlnued) A further descrlptlon of otsr responslbllltles for the audlt of the flnancial statements Is located on the Flnanclal Reportlng Council's webslte at www.frc.org.uVaudltors responslbllltles. Thls description forms part of our auditor's report. Mr Ryan Falls F.C.A. (Senlor Statutory Audltor) For and on behalf of CAVANAGHKELLY Chartered Accountants & Statutory Audltors 36-38 Northland Row Dungannon Co Tyrone BT71 6AP 27 November 2023 CavanaghKel 13
Ralnbow Daycare (Egll$h) Ltd (Ch•rit•ble Company Llmited by Guèrantee) statement of Fln•ncl•l Actlvltles For th• y•ar ended 30 June 2023 Ilnr•Jtrlct•d Fund$ UnrnstrJ£ttd Funds R+strlcteé Funds 2021 Funds Total Fundo 2023 Total Funds 2022 Not•$ 2023 1023 2022 IN¢QMe A14P ENDOWMENTS Income Ir¢m Chorltèble Actlvlyes Other Yr•dln9 A¢tlvltles TOTAL INCOME AIID tIlOOWMep 496,166 23.734 619,•00 514,835 49,554 $64,389 496 021 521 755 521 666 5?1 220 R•i•urc•• Ixp•nd•d harii•ble •¢tlvltl¢s Tot•1 R•sOUrc E>rp•nd•d 516 276 516 276 547 326 433 633 433 633 485 238 Nèt Incom• I lout9olng) rnsourc•• for thè yur 118,2551 17,3161 ¢25.571) 88,033 12,0511 85.981 TrJnsfÈr bthween funds 4,lal 14,1811 B4lan¢• brOU9ht torw1r 449,462 327,914 77Y,J71 357,248 334,146 691,394 1• c•rrl•d lorw•rd 777 376 The above Ststement of Flnancial Activltle5 Includes all Inlormouon Is requlred to be Olsclosed by tht Corrip•nl•s Act 2006, All ol th* ortlvitles of th¢ ¢harltsbl• ¢ompany are <lass¢d •s contlftuinq. ThÈ Statemerbt of Flnonclol A¢tlvlt1+5 Indudes all 9•ln$ ènd losses re¢ognlMd éurlno th• year. The nott$ on pages 18 to. 27 form an Integral pbrt of the nnanel•l stètements. CavanagTrKell 14
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) statement of Financial Position As at 30 June 2023 2023 2022 Not¢s Non-current Assets Property, plant and equipment 726 499 737 687 Current assets Receivables Cash and cash equivalents 10 9,808 16,321 115 305 131,626 108,490 Payables: Amounts falllng due wlthln one year 11 Net current assets Total assets less current Ilabllltoes 803,448 833,339 Payable5: Amounts falling due after one vear 12 (Sl,642) (55,963) Net Assets 777, REPRESENTED BY: Unrestricted funds Restricted funds Total Funds 13 13 13 431,207 320 598 751 806 449,462 327 914 777 376 The dlrettors, statements shown on the following page form part of this Staternent of Flnanclal Posltion, CavanaghKelV 15
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Statement of Financial Position As at 30 June 2023 (Continued) These financial statements have been prepared in accordance with the provlslons appllcable to the small companies, regime within Part IS of the Companies Act 2006. The Directors acknowledge their responsibilities for ensuring that the charitable company keeps accounting records which cornply with Section 386; and for preparing financlal statements which give true and fair view of the state of affairs of the tharitable company as at the end of the financial year and of its incoming or outgoing resources for the financial year in accordance wlth the requirements of sections 394 and 39S and whlch otherwlse comply wlth the requirements of the Companles Act 2006 relating to financlal statements, so far as applicable to the charltable company. The notes on pages 18-27 form an Integral part of the flnancial statements. The flnanclal statements were approved and authorlsed for Issue by the Board of Directors on 27 November 2023 and signed on their behalf by: Catriona Donnelly DIRECTOR Company Reg•stration Number: N1601526 Charity Re9lStration Number: 101018 CavanaghKel 16
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Statement of Cash Flows For the year ended 30 June 2023 2023 2022 Cash flows from operat•ng activities (Deficit)/Surplus for the year (25,571) 85,982 Adjustments for: Depreclation (780) 109,043 Movements in working capital: Movernent In receivables Movernent In payables 6,513 (4,026) 11,659 (8,340) Net cash generated from operating activities 100 703 Cash flows from investing activities Payments to acquire property, plant and equipment Cash flows from f5nanclng actovltles Repayment of bank loans New loans recelved In year {13,900) {113,502) Net (decrease) in cash and cash equlvalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year (16,624) (27,3S8) 115,305 142,663 115 305 CavanaghKelV 17
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 I. GENERAL INFORMATION Rainbow Daycare (Eglish) Ltd is a charitable company limited by guarantee incorporated in Northern Ireland within the United Kingdom. In the event of the charltabie company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company. The address of the registered office is as shown on page 2. The charitable company constitutes a public benefit entity as deflned by FRS 102. 2. ACCOUNTING POLICIES The followlng accountlng pollcles have been applled conslstently In dealing wlth items whlch are cons5dered materlal in relation to the charltable company's financial statements. 2.1 statement of Compliance The financial statements have been prepared in accordance with Accounting and Reportlng by Char5tes: Statement of Recommended Practice (SORP) applicable to charities preparing thelr flnanclal statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective l January 2019 (Second Edition), the Financial Reportlng Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companles Act 2006. 2.2 Basis of Preparatlon The flnancSal statements are prepared on a golng concern basls under the historical cost conventlon. Hlstorical cost is generally based on the fair value of the consideration given in exchange for assets. 2.4 Income and Endowments (S) Charltable Actlvltles Income from charitable activltles includes income received under contract or where entitlement to grant funding Is subject to specific performance conditions. It Is recognised as earned as the related senilces or goods are provlded. Grant Income Is recognised In the Statement of Financial Atttvities when receivable. Grant income included in this category provides funding to support projects and is recognised where there Is entitlement, certalnty of receipt and the arnount can be measured with sufficient reliability. CavanaghKel 18
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 2.4 Income and Endowments (11) Other Tradln9 actlvltles voluntary Income Includes incomlng resources from gifts, donatlons and grants and Is recognised in full in the Statement of Financial Activities when receivable. Activities for generating funds are commercial artivities which are recognised as earned when the related goods and services are provided. 2.S Resources Expendlture Expendlture Is recognlsed when a IlabS1ity is incurred. Contractual arrangements and performance related grants are recognised as goods and services are supplled. Where costs cannot be dlrectly attributed to a particular heading, they have been allocated to actlvtties on a basls conslstent with use of resources. 'Staff costs and overhead expenses are allocated to activitles on the basls of Stsff tlme spent on those activities. (i) This comprlses all the resources applled by the charitable company in undertaking its work to meet its charitable objectives. Charltable actlvltles wlll include the costs of governance arrangements which relate to the general running of the charlty. 2.6 Fund Accountlng The charitsble company has two types of funds for whlch it Is responsible at the year-end: Deslgnated Funds - Funds whlch are unrestricted which the trustees have dedded at their discretion to Set aside for a specific purpose. Unrestrocted Funds - Funds whlch are expendable at the dlscretlon of the Dlrectors in furtherance of the objectives of the charitable company. In additions, funds rnay be held In order to flnance capltal investment and working capital. Restrlcted Funds - Income received for specific purposes. Such purposes are withln the overall aims of the charitable company. caVanaKellY. 19
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 2.7 Property, Plant and Equlpment and Depreciation All property, plant and equipment are 5nltlally recorded at cost. Depreaation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows: Land and Buildings Fixtures, Fittings & Equipment Motor Vehlcles 20/0 Stralght Llne 250/0 Straight Llne 20Q/o Straight Line 2.8 Trade and Other Recelvables Trade and other receivables are initially recorded at falr value and thereafter stated at cost less impairment losses for bad and doubtful debts. 2.9 Trade and Other Payables Trade and other payables are Inltially recognlsed at falr value and thereafter stated at cost. 2.10 Taxatlon As a charity, the charitable company is not liable to Corporatlon Tax. 2.11 Crltlcal accountlng Judgements and estlmatlon uncertainty Estlmates and Judgements are contlnually evaluated and are based on hlstodcal experience and other factors, includlng expectatlons of future events that are believed to be reasonable under the circumstances. Criticaljudgements in applying the entity s accounting policies There are no critlcal judgements In applying the charity's accountlng pollcles. Critical accounting estimates and assumptions The are no artual accounting estimates and assumpty'ons. CavanaghKel 20
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 2.12 Financial instruments (l) Flnanclal assets Basic financlal assets, Including trade and other receivables, cash and bank balances and amounts owed by related parties and are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is rneasured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest rnethod, At the end of each reportlng perlod flnancial assets measured at amortlsed cost are assessed for objective evldence of irnpairment. If an asset Is Impalred the Impairment loss Is the dlfference between the carrylng amount and the present value of the estimated cash flows discounted at the asset's original effective Interest rate. The Impalrment loss is recognlsed In the Statement of Financlal Activities. If there Is a decrease In the impairment loss arising from an event occurring after the Impairment was recognised, the impairment is reversed. The reversal is such that the current carrylng amount does not exceed what the carrying arnount would have been had the Impalrment not prevlously been recognlsed. The impairment reversal is recognised in the Statement of Flnanclal Actlvities. Financlal assets are derecognised when (a) the contractual rlghts to the cash flows from the asset expire or are settled, or (b) substantlally all the risks and rewards of the ownershlp of the asset are transferred to another party or (c) despite having retained seme significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unllaterally sell the asset to an unrelated third party without imposing additional restrictions. (il) FSnancial Ilabi lities Baslc tinancial Ilabllities, Including trade and otrier payables, bank loans and overdratts ana amounts owed to related partles are initlally reco9nSsed at transaction price, unless the arrangement constitutes a financlng transaction, where the debt Instrument Is measured at the present value of the future receipts di5c¢unted at a market rate of Interest. Debt Instruments are subsequently carried at amortised cost, using the effective Interest rate rnethod. Fees pald on the establishment of loan facilities are recognised as transattion costs of the loan to the extent that It Is probable that some or all of the facility will be drawn down. In this case. the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facillty wlll be drawn down, the fee is caDitalised as a Dre-oavrnent for liauiditv serice5 and amortlsed over the oeriod of the facilitv to CavanaghKel 21
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classlfied as current liabilities if payment is due wlthin one year or less. If not, they are presented as non-current liabilities. Trade payables are reco9nlsed Snltially at transaction price and subsequently measured at arnortised cost using the effective Interest method. Financlal liabllities are derecognised when the Ilability Is extlngulshed, that Is when the contractual obligation is discharged, cancelled or expires. 2.13 Pension and other post retirement obligations The charity operates a defined contribution penslon scheme which Is a pension plan under which fixed contributlons are pald Into a penslon fund and the charity has no legal or constructive obligation to pay further contrlbutions even If the fund does not hold sufflcient assets to pay all employees the benefits relats'ng to employee servlce In the current and prlor perlods. Contributions to defined contributlon plans are recognised In the Statement of Flnanclal.Activltles when they are due. If contribution payments exceed the contribution due for the servlce, the excess is recognlsed as a prepayment. CavanaghKel 22
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 3. INCOME AND ENDOWMENTS Unrestrlrted Re5trl¢t¢d Funds Funds Total Funds Total Funds 2023 2023 2023 2022 Charitable Artivities Children Fees & Daycare Playgroup & Out of School Income 324,677 167,895 324,677 167,895 320,631 156.957 Grant Zncome: SHscr Pathway Covid Grants Milk Grant Department of Educatlon Department of Employment BSO - Supported Playgroup Place 5,390 44.164 35,220 1,927 loo 21,560 21,560 2,174 2,174 3,055 540 3,055 540 Total Income Actlvltles from Charitable 496,166 23,734 519,900 S64,389 Income on charitable activities in the year ended 30 June 2022 of £564,389 was made up of unrestricted funds of £514,835 and restrlcted funds of £49,554. Income from Other Trading Activities Unlforms FundraisSng Other Income 433 1,422 433 1,422 830 2,852 3,149 1,855 1,855 6.831 All income from other trading activities in the tear ended 30 June 2022 was unrestlcted. CavanaghKelV 23
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 5. RESOURCES EXPENDED Unrestricted Restricted Funds Funds 2023 2023 Total Funds Total Funds 2023 2022 Charitable artivities Wages Pension Insurance Light & Heat Water Charges Telephone Cleaning Adverts Prlnting & Stationery Travel expense Resources Equipment & Toys Food and Snacks Tralnlng Early Years Fees Jumpers/ Uniforms Repairs & Malnt IT equipment and malntenance Bank Interest & Fees Loan Interest Payments 8ookkeeping and office support Depreciation Land and Buildings DepreclatSon Fixture & Fittings Depreciation Motor Vehicles Audit Professional Fees General expenses Gifts Outings 380,131 6,888 11,323 14,057 1,378 2,941 12,974 1,728 2,444 4,454 3,385 18,743 819 1,885 1,377 6.861 2,458 523 3,349 12,628 10,264 5,958 1,252 3,355 1,594 1,049 1,128 1,329 21,560 401,691 6,888 11,323 14,057 1,378 2,941 12,974 1,728 2,444 6,628 3,385 18,743 819 1,885 1,377 6,861 2,458 523 3,349 12,628 16,715 6.823 1,252 3,355 1,594 1,049 1,128 1,329 359,646 5,123 11.348 12,087 1,242 2,597 523 1,857 1,188 11,432 5,037 16,789 602 2,490 1,352 5,030 1,197 498 4,453 9,676 16,712 5,422 927 2,698 1,734 1,954 535 1,090 2,174 6,451 865 S16,276 31,OSO 547,326 485,238 Expenditure on charitable activities in the year ended 30 lune 2022 of £485,238 was made up of unrestricted funds of £433,633 and restricted funds of £51.605. CavanaghKel 24
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 9. PROPERTY, PLANT AND EQUIPMENT Land and Bulldlngs freehold Motor Vehlcles Fixtures, Fottlngs and Equipment Total Cost At 30 June 2022 Addltions At 30 June 2023 835,623 ii,ioo 61,260 907,983 835 623 921 585 Depreclatlon At 30 June 2022 Charge for the year At 30 June 2023 118,571 7,393 44,332 170,296 135,286 195 086 Net Book Values At 30 June 2023 700,337 8,955 17,207 726 499 At 30 June 2022 717,052 3,707 16,928 737 687 10. RECEIVABLES 2023 2022 Trade receiveables 16,32 11. PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YeAR 2023 2022 Bank loan Trade payables Accruals and deferred income 17,248 660 13.633 31,541 26,828 4,206 4,940 74 12. PAYABLES: AMOUNTS FALLING DUE AFfER ONE YEAR 2023 2022 Bank loan Sl,642 51, CavanaghKel 25
Rainbow Daycare (Eglish) Ltd (Charltable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 6. NET INCOME/{EXPENDITURE) FOR THE YEAR Net Incorne/(expenditure) Is stated after charging/(crediting): 2023 2022 Depreciation Auditor remuneration 24,790 23,061 REMUNERATXON Independent examlnatlon fee of £3,355 BENEFITS by the charitable company durlng the year benefit's was as follows: 2023 2022 Wages and salarles Soclal security costs Penslon costs 382,968 18,723 328,969 30,677 408,579 364,769 No employee of the chartiable company received total employee benefits of more than £60,000. The directors are considered the key management of the charity. 8.1 DIRECTORS, REMUNERATION The Directors received nor waived any remunerations or any other benefits during the year and no reimbursements of expenses Incurred. CavanaghKel 26
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2023 Bank loan maturity analysis 2023 2022 Repayable within one year Repayable between one and two years 17,248 51,642 26,828 55,962 The bank loans are secured by the assets of the Charity. 13. ANALYSIS OF NET ASSETS Unrestrlcte Restricted Total Total Funds 2023 Funds 2023 Funds 2023 Funds 2022 Property, equipment Current assets Current liabilities Non-current liabilities plant and 737,687 415,110 99,281 (31,541) 311,389 9,209 726,499 108,490 (31,541) 131,626 {35,974) 431 208 320 598 751 806 777 376 14. ANALYSIS OF FUNDS Opening Balance Income Expenditure Transfer etween Funds Closing Balance Departrnent of Agriculture and Rural Development Pathways Mllk Grant 316,114 11,800 {6,451) (22,425) {2,174) 309,663 21,560 2.174 10,935 Restricted Fund5 327,914 23,734 (31,050) 320,598 Unrestricted Funds 449,462 498,021 (516,276) 431,207 Total Funds 777 376 521 755 547 326 751 805 15. CONTINGENT LIABILITIES A contingent liability exists to repay grants received should certain conditions not be fulfilled by the charitable cornpany. In the opinion of the directors the terms of these letters of offer have been complied with and no loss is expected. CavanaghKel 27