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 #72 CavanaghKelV 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