Company Registration 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 2024 CavanaghKelly"
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Contents For the year ended 30 June 2024 Page General Informatlon Dlrectors, Report Independent Auditor's Report 9-13 statement of Flnancial Actlvltles 14 statement of Flnancial Position 15- 16 Statement of Cash Flows 17 Notes to the Flnanclal Statements 18-27 CavanaghKel
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) GENERAL INFORMATION Board of Directors Martina Bateson Clare Daly Fionnuala Daly Eimear Donaghy Catriona Donnelly Colette Fay Orla Kelly Sophia Kerr Company Secretary Flonnuala Daly Registered office Rainbow Community Childcare 2 Stiloga Road Eglish Dungannon Co. Tyrone BT71 7DW Company registration number N1601526 Charity registration number 101018 Independent examlners CavanaghKelly Chartered Accountants 36-38 Northland Row Dungannon Co. Tyrone BT71 6AP Bankers Bank of Ireland Market Street Magherafelt Co. Londonderry BT45 6EE CavanaghKelly"
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) DIRECTORS, REPORT For the year ended 30 June 2024 The Directors, who are the trustees for the purpose of charity law, have pleasure in presenting their report and the audited financial statements of the charitable company for the year ended 30 June 2024. The flnanclal statements have been prepared In accordance with the Statement of Recommended Practice "Accounting and Reporting by Charities" (FRS 102), United Kingdom Generally Accepted Accounting Practice and the Companies Act 2006. Reference and Administration Details The reference and administration details of the charity are as shown on page 3. Objectives and Activities The key aim of Ralnbow Daycare (Eglish) Ltd is to allow young people to develop their own optimum level of Independence. The prlnclpal activlty of the charity is to enhance development and education of young children through.. The provision of high quality day care and childcare. Working to ensure that quality day care and childcare is avallable to children and families regardless of means, race, disability, gender, religion, belief or any other factor; Identlfylng the wider support needs of children and families and to seek to ensure that such needs are met. Encouraging, enabling and supporting the involvement of parents and carers in thelr children's learning and development; and Contributing to the professional development of those working in daycare and childcare. and Encouraging and enabling the involvement of parents, carers and the wider communlty in the affairs of the Charity. Public Beneflt Statement The Directors of Rainbow Daycare (Eglish) Ltd confirm that they have complied with their duty under section 4(6) of the Charities Act (Northern Ireland) 2022 to have regard to the Charity Commission for Northern 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 2024. Achievements and Performance The Directors are confident that the charitable company continues to meet its performance objectives to benefit the local community. The charitable company continues to receive funding from local bodies. Rainbow Daycare (Eglish) Ltd is registered with the Southern Health and Social Care Trust and is inspected by the trust annually to ensure that high quality care and education is provided for all children in its centre. It Is also a member of the 'Early Years Organisation for Young Children" CavanaghKelly"
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) DIRECTORS. REPORT For the year ended 30 June 2024 Rainbow Daycare (Eglish) Ltd currently offers a combined capacity of 151 registered places, 51 for playgroup, 60 for out of school and 40 for daycare. The centre has been designed to meet the hlghest chlldcare standards, meeting with the trust's 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 highest standards are being maintained. With a high standard of staff training and experience, the centre is providing an opportunity for others ta learn and become tralned In childcare, both as workers and volunteers In a rural area. The centre supports the cross community requirements of the charity given its neutral location In the community. As is the case with many other rural communities in Northern Ireland, these children are dominated by one tradition that experiences little contact with similar groups from other traditions. Thls can limit thelr abillty to address confllct and dlvision, and can also hinder regeneration or development in that locality. The centre helps address this imbalance. The playgroup provides pre-school services to children aged 3 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 recognlsed standard wlth Early Years and Social Services. '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 variety of settings including daycare, playgroups, nurseries and prlmary schools. This best practice approach 'High/Scope' is also being implemented for the babies and toddlers who attend full daycare. The playgroup places are funded through the PEGS programme. Out of School Club commenced in September 2012, which operates from 2.00pm to 6.00pm during term time and caters for children from 4 to 12 years of age. 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, exercise and development of hobbles and sports. Financial Review FAnanclal Performance The financial performance was in line with the Board of Directors, expectations. The charitable company remains in a sound financial position at the year end. The results for the year are set out in detail on pages 14-27. The charitable company returned net outgoing resources for the year of £13,202 (2023: net outgoing resources of £25,571). At 30 June 2024, the total funds of the charitable company amounted to £738,603 (2023.. £751,805) comprising unrestricted of £435,391 (2023: £431,207) and restricted £303,212 (2023.. £320,598) of restricted funds. Principal sources of funding and how this has supported the key objectives of the charitable company are disclosed in the notes to the financial statements. CavanaghKelly"
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) DIRECTORS, REPORT For the year ended 30 June 2024 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 are satisfied that these are adequate to meet any unforeseen expenditure incurred. The directors feel there is no need for a formal reserves policy as Rainbow Daycare (Eglish) Ltd is an income generating charity and only relies on grant income for a small proportion of income. The charitable company has free reserves of £26,666, approximately the equivalent of 2,5 weeks unrestricted expenditure (2023.. £16,098 - 2 weeks). Structure, Governance and Management Organisational structure The charitable company is a company limlted by guarantee, not having a share capital. The company was established under a Nemorandum of Association which established the objects and powers of the company and Is governed under Its Articles of Assoclation. Any person wlshing to become a Director must apply in writing prior to the Annual General Meetlng. A vote is then taken at the Annual General Meeting as to whether that person is appointed. Directors The Directors during the year are the same as the Directors as listed on page 3. Taxation Status The charitable company is recognised as a charity by HM Revenue & Customs. Accordlnglyi the charitable company has availed of the exemptlons contalned in Chapter 3 Part 11 Corporation Taxes Act 2010 and Section 256 Taxation of Chargeable Galns Act 1992. CavanaghKelly"
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) DIRECTORS. REPORT For the year ended 30 June 2024 Directors, Responsibilities Statements The Directors are responsible for preparing the Directors, Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom GeneralSy Accepted Accounting Practice). Company law requires the directors to prepare financial statements for each financlal year which give a true and fair view of the state of the affairs of the charitable company 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 Directors are required to., Select suitable accounting policies and apply them. Observe the methods and principles in the Charities SORP (FRS 102). Make judgements and estlmates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. and Prepare the financial statements on the going concern basis unless It Is Inappropriate to presume that the charitable company will continue in operation. The dlrectors are responslble for keeping adequate accounting records that disclose wlth reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taklng reasonable steps for the prevention and detection of fraud and other irregularities. statement of Disclosure of Informatlon to Audltor In so far as the directors, who held office at the date of approval of these flnanclal statements, are aware: there is no relevant audit information of which the charitable company's auditor is unaware; and the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establlsh that the audltor Is aware of that informatlon. CavanaghKelly"
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) DIRECTORS, REPORT For the year ended 30 June 2024 Small Companies Exemption The above report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006. This report was approved by the Board of Dlrectors and signed on its behalf by., h(,( th24- Catriona Donnelly Director Date Company Registration Number: N1601526 Charity Registration Number: 101018 CavanaghKelly"
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 2024 Opinion We have audited the financlal statements of Rainbow Daycare (Eglish) Ltd ('the charitable company,) for the year ended 30 June 2024 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and the related notes to the financial statements, including a summary 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 Directors, as a bodyi in accordance with 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 matters we are requlred 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 formed. In our opinion the financial statements., give a true and fair view of the state of the charitable company's affalrs as at 30 June 2024 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 United 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 audlt 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. CavanaghKelly"
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 2024 Conclusions relating to going concern We have nothing to report in respect of the following 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 concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. Other Information The directors are responsible for the other information. The other information comprises the information included in the Dlrectors, Report, other than the financial statements and our Auditor's Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our repart, we do not express any form of assurance concluslon thereon. In connection with our audit of the financial statements, 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 audlt, or otherwise appears to be materially mlsstated, If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other Informatlon. 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 thls regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: -the information given in the Dlrectors, Report for the financial year for which the financlal statements are prepared is consistent with the financial statements; and -the Directors, Report has been prepared in accordance with applicable legal requirements. CavanaghKelly° io
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 2024 Matters on which we are required to report by exceptlon In the Ilght 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 following matters in relation to which the Companies Act 2006 requlres us to report to you if, in our opinian., adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not vlsited by us. or the flnanclal statements are not in agreement with the accounting records and returns; or certain disclosures of directors, remuneration specified by law are not made. or we have not recelved all the Information and explanatlons we requlre for our audit; or the directors were not entitled to prepare the financial statements in accordance with the small companies, regime and take advantage of the small companies, exemption in preparing the Dlrectors, Report. Responsibilities of Directors As explained more 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 preparatlon of the flnanclal statements and for belng satisfled that they give a true and fair view, and for such internal control as the Directors 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 flnanclal statements, the dlrectors are responsible for assessing the company's ability to continue as a golng concern disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intends to liquidate the charitable company or to cease operatlons, or has no realistic alternative but to do so. CavanaghKelly" li
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 2024 Explanation as to what extent the audit was consldered capable of detecting irregularities, including fraud Irregularities, including 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 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 misstatement in respect of irregularities, Including 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, Financial Reporting Standards (FIS102), grant fundlng bodles regulation and UK taxation legislation. We have assessed the risk of material misstatement of the financial statements, including risk of material rnisstatement due to fraud and how it might occur by holdlng discusslons 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 wlth laws and regulatlons; -certain disclosures of directors, remuneration specified by law are not made; or Understanding the internal controls established to mitigate risks related to fraud or non- cornpliance with laws and regulations, and Discussions amongst the audit engagement team regarding how fraud might occur In the financial statements and any potential Indicators of fraud, As part of thls dlscussion we Identlfled the following potential areas where fraud may occur.. timing of revenue recognition, recognition of grant income and rnanagement override. The audlt response to rlsks Identlfled Included.. Reviewing the financial statements disclosures and testing to supporting documentation 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 addre551ng 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 business 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. CavanaghKelly° 12
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 2024 Auditor's responsibilitles for the audit of the financial statements 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, indlvidually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Auditor's responsibilities for the audit of the financial statements (Continued) A further description of our responsibilities for the audit of the financial statements is located on the Financlal Reporting Council's webslte at www.frc,org.uk/auditars responsibilitles. This description forms part of our auditor's report. Mr Ryan Falls F.C.A. (Senior Stat For and on behalf of CAVANAGHKELLY Chartered Accountants & Statutory Auditors 36-38 Northland Row Dungannon Co Tyrone BT71 6AP Auditor) Date CavanaghKelly" 13
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) statement of Financial Position As at 30 June 2024 2024 2023 Notes Non-current Assets Property, plant and equipment 701 709 726 499 Current assets Receivables Cash and cash equlvalents io 16,406 96,806 113,212 9,808 98,681 108,489 Payables: Amounts falling due within one year li {38,423) 31,541) Net current assets 74,789 Total assets less current Ilabilities 776,498 803,447 Payables: Amounts falling due after one year 12 {37,895) (51,642) Net Assets 738,603 751,805 REPRESENTED BY: Unrestrlcted funds Restrlcted funds Total Funds 13 13 13 435,391 303,212 738 603 431,207 320,598 751 805 The dlrectors, statements shown on the following page form part of thSs Statement of Flnanclal Position, CavanaghKelly" 15
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) statement of Financial Position As at 30 June 2024 (Continued) These financial statements have been prepared in accordance with the provisions applicable to the small companies, regime within Part 15 of the Companies Act 2006. The directors acknowledge their responsibilities for ensuring that the charitable company keeps accountlng records whlch comply wlth Section 386. and for preparing flnancial statements whlch glve a true and falr view of the state of affairs of the charitable company as at the end of the financial year and of its incoming or outgoing resources for the financial year in accordance with the requirements of sections 394 and 395 and whlch otherwise comply with the requlrements of the Companies Act 2006 relatlng to flnanclal statements, so far as appllcable to the charltable company. The notes on pages 18 - 27 form an Integral part of the flnanclal statements, The flnanclal statements were approved and authorlsed for Issue by the Board of Directors and signed on thelr behalf by: Catriona Donnellv DIRECTOR Date Company Registration Number: N1601526 Charity Registration Number: 101018 CavanaghKelly° 16
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Statement of Cash Flows For the year ended 30 June 2024 2024 2023 Cash flows from operating activities (Deficit)/Surplus for the year (13,202) (25,571) Adjustments for,. Depreciation 781 Movements in worklng capltal: Movement in receivables Movement in payables (6,598) 6,513 284 Net cash generated from operating activities 11,872 10,878 Cash flows from investing activities Payments to acquire propertyi plant and equlpmerst (13,602) Cash flows from financing activities Repayment of bank loans (13,747) (13,900) Net (decrease) in cash and cash equivalents (1,875) (16,624) Cash and cash equivalents at beginning of financial year 98,681 115,305 Cash and cash equivalents at end of financial year CavanaghKelly° 17
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 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 charitable company being wound up, the liability in respect of the guarantee is limited to £ I 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 defined by FRS 102. 2. ACCOUNTING POLICIES The following accounting policies have been applled consistently in dealing with Items which are considered material in relation to the charitable company's financial statements. 2.1 Statement of Compliance The flnancial statements have been prepared In accordance wlth Accountlng and Reportlng by Charites.. statement of Recommended Practice (SORP) applicable to charities preparing their financial 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 Companies Act 2006. 2.2 Basis of Preparation The financial statements are prepared on a going concern basls under the historical cost conventlon. Historical cost is generally based on the fair value of the consideration given in exchange for assets. 2.3 Income and Endowments (i) Charitable Activities Income from charltable activitles includes incorne received under contract or where entitlement to grant funding is subject to specific performance conditions. It is recognised as earned as the related services or goods are provided. Grant income is recognised in the Statement of Financial Activities when receivable. Grant income included in this category provides funding to support projects and Is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. CavanaghKelly° 18
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 2.3 Income and Endowments (li) Other Trading activities Voluntary income includes incoming resources from gifts, donations and grants and is recognised in full In the Statement of Financlal Actlvities when receivable. Activities for generating funds are commercial activities which are recognised as earned when the related goods and services are provided. 2.4 Resources Expenditure Expenditure Is recognised when a liability is incurred, Contractual arrangements and performance related grants are recognised as goods and services are supplied. Where costs cannot be directly attributed to a particular heading, they have been allocated to activltles on a basls consistent with use of resources. Staff costs and overhead expenses are allocated to activities on the basis of staff time spent on those activities. (l) Charitable Activities Thls comprlses all the resources applled by the charitable company in undertaking its work to meet its charitable objectives. Charitable activities will include the costs of governance arrangements which relate to the general running of the charity. 2.5 Fund Accounting The charitable company has two types of funds for which It Is responsible at the year-end: Unrestricted Funds Funds which are expendable at the dlscretlon of the Dlrectors in furtherance of the objectives of the charitable company. In additions, funds may be held in order to finance capital investment and working capital. Restricted Funds Income received for specific purposes. Such purposes are within the overall aims of the charitable company. CavanaghKelly" 19
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 2.6 Propertyi Plant and Equipment and Depreciation All property, plant and equipment are initially recorded at cost. Depreciation is provlded at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows: Land and Buildings Flxtures, Flttings & Equipment Motor Vehlcles 20/0 Straight Line 25010 Straight Llne 200/0 Straight Line 2.7 Trade and Other Receivables Trade and other receivables are Initially recorded at fair value and thereafter stated at cost less impairment losses for bad and doubtful debts. 2.8 Trade and Other Payables Trade and other payables are Initially recognised at fair value and thereafter stated at cost. 2.9 Taxation As a charity, the charitable company Is not liable to Corporation Tax. 2.10 Critlcal accounting judgements and estimation uncertainty Estimates and judgements are continually evaluated and are based on historlcal experSence and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical judgements in applying the entity's accounting policies There are no critical judgements In applying the charlty's accounting pollcles. Critical accounting estimates and assumptions There are no actual accounting estimates and assumptions. CavanaghKelly° 20
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 2.11 Financial instruments (i ) Financial assets Basic financial 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 measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carrled at amortised cost using the effective interest method. At the end of each reportlng perlod flnanclal assets measured at amortlsed cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Statement of Financial Activitles. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognlsed, the impairment is reversed. The reversal is such that the current c2rrylng amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal Is recognlsed in the Statement of Financial Activitles. Flnanclal assets are derecognlsed when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownershlp, control of the asset has been transferred to another party who has the practical ability to unilaterallv sell the asset to an unrelated third party without imposinq additional restrictions. (li) Financlal liabllities Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties are initially recognised at transaction price, unless the arrangernent constitutes a financing transaction, where the debt instrument is measured at the present value of the future recelpts dlscounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishrnent of loan facilities are recognised as transaction 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 facility will be drawn down, the fee is capitali5ed as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. CavanaghKelly" 21
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 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 classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. 2.12 Pension and other post retirement obligations The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a penslon fund and the charity has no legal or constructive obligation to pay further contrlbutions even if the fund does not hold sufficlent assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for the service, the excess is recognised as a prepayment. CavanaghKelly° 22
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 3. INCOME AND ENDOWMENTS Unrestricted Funds 2024 Restricted Funds 2024 Total Funds Total Funds 2024 2023 Charitable Activities Children Fees & Daycare Playgroup & Out of School Income SELB PEGS 332,618 97,953 103,579 332,618 97,953 103,579 324,677 84,650 83,245 Grant Income: Pathway Covld Grants Mllk Grant Department af Educatlon Department of Employment BSO - Supported Playgroup Place 27,356 27,356 21,560 3,002 3,002 2,174 500 500 3,055 540 Total Income Activities from Charitable 534,150 30,858 565,008 519,900 Income on charltable actlvltles Sn the year ended 30 June 2023 of £519,900 was made up of unrestrlcted funds of £496,166 and restricted funds of £23,734. Income from Other Trading Actlvltles Unlforms Fundraising Other Income 2,125 1,335 312 2,125 1,335 312 433 1,422 3,772 3,772 1,855 All income from other trading activities In the year ended 30 June 2023 was unrestricted. CavanaghKelly 23
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 5. RESOURCES EXPENDED Unrestricted Funds 2024 Restricted Funds 2024 Total Funds Total Funds 2024 2023 Charitable activities Wages Pension 408,325 5,793 9,976 11,580 2,626 2,847 15,758 3,125 3,691 1,074 4,729 14,049 777 3,210 2,171 6,656 3,814 575 3,500 10,335 10,264 5,958 1,252 4,542 4,080 2,044 726 1,350 17,913 426,238 5,793 9,976 11,580 2,626 2,847 15,758 3,125 3,691 6,858 4,729 17,051 3,917 3,210 2,171 6,656 3,814 575 401,691 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 Insurance Light & Heat Water Charges Telephone Cleaning Adverts Prlntlng & Statlonery Travel expense Resources Equlpment & Toys Food and Snacks Trainlng Early Years Fees Jumpers/ Uniforms Repalrs & Malnt IT equlpment and malntenance Bank fnterest & Fees Loan Interest Payments Bookkeeplng and office support Depreciation Land and Buildlngs Depreclatlon Fixture & Fittings Depreciation Motor Vehicles Audit Profe551ona l Fees General expenses Gift5 Outings 5,784 3,002 3,140 3,500 10,335 16,715 6,823 1,252 4,542 4,080 2,044 726 1,350 6,451 865 544,827 37,155 581,982 547,326 Expendlture on charitable activities in the year ended 30 June 2023 of £547,326 was made up of unrestricted funds of £516,276 and restricted funds of £31,050. CavanaghKelly" 24
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 6. NET INCOME/(EXPENDITURE) FOR THE YEAR Net Income/{expenditure) is stated after charglngl{creditlng)'. 2024 2023 Depreciation Audltor remuneratlon 24,790 4,542 24,790 3,355 7. INDEPENDENT AUDITOR'S REMUNERATION The independent audltors fee were £4,542 (2023., £3,355) 8. STAFF COSTS AND EMPLOYEE BENEFITS The average number of persons employed by the charitable company durlng the year 24 (2023.. 27). The total staff costs and employee benefit's was as follows: 2024 2023 Wages and salarSes Social security costs Pension costs 408,126 18,112 5,793 432,031 382,968 18,723 6,888 408,579 No employee of the chartlable company received total employee benefits of more than £60,000. The dlrectors are consldered the key management of the charlty. 8.1 DIRECTORS, REMUNERATION The Directors received nor waived any rernunerations or any other benefits during the year and no relmbursements of expenses Incurred, CavanaghKelly" 25
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 9. PROPERTY, PLANT AND EQUIPMENT Land and Buildings freehold Motor Vehicles Fixtures, Fittings and Equipment Total Cost At 30 June 2023 Additions At 30 June 2024 835,623 17,600 68,362 921,585 835,623 17,600 68,362 921 585 Depreclation At 30 June 2023 Charge for the year At 30 June 2024 135,286 16,715 152,001 8,645 1,252 9,897 51,155 6,823 57,978 195,086 219 876 Net Book Values At 30 June 2024 683,622 7,703 10,384 701 709 At 30 June 2023 700,337 8,955 17,207 726 499 10. RECEIVABLES 2024 2023 Trade receivables other debtors 13,868 9,808 16,406 9,808 11. PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Bank loans Trade payables Accruals and deferred income 17,248 684 20,491 38,423 17,248 660 13,633 31,541 12. PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR 2024 2023 Bank loans 37,895 37,895 51,642 51,642 CavanaghKelly° 26
Rainbow Daycare (Eglish) Ltd (Charitable Company Limited by Guarantee) Notes to the Financial Statements For the year ended 30 June 2024 12. PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR Bank loan maturity analysis 2024 2023 Repayable withln one year Repayable between one and two years 17,248 37,895 17,248 51,642 The bank loans are secured by the assets of the Charity. 13. ANALYSIS OF NET ASSETS Unrestricted funds 2024 Restricted Total funds funds 2024 Total funds 2024 2023 Property, plant and equlpment Current assets Current liabilities Non-current Ilabl lities 397,636 107,234 (31,584) 37,895 435,391 304,073 701,709 5,978 113,212 {6,839) (38,423) 37,895 738 603 726,499 108,489 (31,541) 303 212 751,805 14. ANALYSIS OF FUNDS Opening Balance Income Expenditure Transfer Between Funds Closing Balance Department of Agriculture and Rural Development Pathways Mllk Grant Employment grant Restricted Funds 309,663 (6,451) (27,202) (3,002) 500 (37,155) 303,212 10,935 27,356 3,002 500 30,858 (11,089) 320,598 (11,089) 303,212 Unrestricted Funds 431,207 537,922 (544,827) 11,089 435,391 Total Funds 751 805 568 780 581 982 738 603 15. CONTINGENT LIABILITIES A contingent Ilabl1tY exlsts to repay grants recelved should certaln condltlons not be fulfilled by the charitable company. In the opinion of the dlrectors the terms of these letters of offer have been complled with and no 105s Is expected. CavanaghKelly° 27