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 financial statements, including a SL•mmary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 -The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). This report Is made solely to the charitable company's Dirertors, as a body, in accordance wlth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we mlght state to the charitable company's Directors those rnatters 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 assurne 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 formed. 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 ancl 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 United Kingdom Generally Accepted Accounting Practice; and -have been prepared In accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Irjternational 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 requlrements that are relevant to our audit of the financial staternents 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. CavanaghKel
Independent Auditor's report to the Directors of Rainbow Daycare (Eglish) Ltd for the year ended 30 June 2023 Conclusions relating to going concern We have nothing to report in respect of the followlng matters in relation 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 Identified material uncertainties 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 rnonths 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 information included in the Directors, Report, other than the financial statements and our Auditor's Report thereon. Our oplnion on the financial 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 financial statements, our responsibility is to read the other Information and, in doing so, consider whether the other inforrnation is materially Inconsistent with the financial statements or our knowledge obtained In the audit, or othenNise appears to be materially misstated. If we identlfy such material inconsistenaes or apparent materlal misstatements, we are required to deterrnine whether there is a material misstatement In the financial statements or a material 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 nothing to report in this regard. OpinSons on other matters prescribed by the Companies Act 2006 In our oplnlon, based on the work undertaken in the course of the audlt: -Cbe information given in the Directors, Report for the financial year for which the financial staternents are prepared is consistent with the financial statements; and -Cbe 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 in relation to which the Companies 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 bet received from branches not visited by us; or •fbe financial staternents are not in agreement with the accounting records and returns; or •Eèrtain disclosures of directors, remuneration specified by law are not made; or •&e have not received all the information and explanations we require for our audit. or the directors were not entitled to prepare the flnanclal statements In accordance with the sm companles. regime and take advantage of the small companies, exernption in preparing the Dlrectors, Report. Responsibilities of Directors As explained 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 satisfied that they give a true and fair view, and for such internal control as the Directors detemiine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparlng the flnancial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and uslng the going concern basis of accounting unless the directors either intends to liquidate the charitable company or to cease operations, or has no realistic alternative but to do so. CavanaghKelV 11
Independent Auditor's report to the Directors of Rainbow Daycare (Egli5h) Ltd for the year ended 30 June 2023 Explanatlon as to what extent the audit was considered capable of detecting irre9ularities, including fraud Irregularities, Including fraud, are instances of non-compliance with laws and regulations. The objective5 of our audit in respect of fraud are to assess the risk of material misstatement 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 audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the charitable company. In identifying and assessing risks of material mlsstatement in respect of irregularities. includln9 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 slgnificant are the Companies Act 2006, Financial Reporting Standards (FRS102), Grant funding bodies regulation and UK taxation legislation. We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due ta fraud and how it might occur by holdin9 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-compliance with laws and regulations. -cèrtain disclosures of directors, remuneration specified by law are not made; or Understanding the intemal 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 financial 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 testing to supporting documentatlon to assess compliance with the relevant laws and regulations above; Performing analytical procedures to identify any unusual or unexpected relationships that may Indicate risk of material misstatement due to fraud; In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments. assessing whether the judgements made in making accounting estimates are reasonable and evaluating the busines5 rationale of any significant transactions 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 responsibllitles 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 Auditovs Report that includes our opinion, 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 mlsstaternent when It exlsts. Misstatements can arlse from fraud or error and are considered material 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 responsibllltles lor the audit of the financial statements (Contlnued) A further descrlptlon of our responsibilitles for the audit of the financial statements is located on the Flnanclal Reportlng Council's webslte at www.frc.org.uklaudltors 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 Auditors 36-38 Northland Row Dungannon Co Tyrone BT71 6AP 27 November 2023 CavanaghKel 13