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