Charity Registration No. NIC101176 Company Registration No. N1043041 (Northern Ireland) EMPLOYERS FOR CHILDCARE GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023
EMPLOYERS FOR CHILDCARE LEGALAND ADMINISTRATIVE INFORMATION Directors Mrs J Kennedy Mrs S Mccarry Prof M McHugh OBE Ms A Mervyn Mrs L Mulholland Mr J O'Neill Mr M Stevenson Secretary Ms M Marin OBE Charlty number NIC101176 Company number N1043041 Principal address 11 Blaris Industrial Estate 11 Altona Road Lisburn Co. Antrim BT27 5QB Registered office 11 Blaris Industrial Estate 11 Altona Road Lisbum Co. Antrim BT27 5QB Auditor GMCG LISBURN Century House 40 Crescent Business Park Lisburn BT28 2GN Bankers Danske Bank 4548 High Street Portadown Craigavon Co Armagh BT62 1 LB Solicitors Edwards & Co 28 Hill Street Belfast BT1 2LA Worthinglons 24-38 Gordon Street Belfast BT12LG
EMPLOYERS FOR CHILDCARE CONTENTS Page Directors, report Independent auditor's report Group Statement of financial activities Group Statement of financial position 11 Company Statement of financial postion 12 Group Statement of cash flows 13 Company statement of cash flows 14 Notes to the financial statements 15-29
EMPLOYERS FOR CHILDCARE DIRECTORS, REPORT FOR THE YEAR ENDED 31 MAY 2023 The director5 present their annual report and financial statements for the year ended 31 May 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and Gomply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102)" (effective 1 January 2019). Objectives and activities Employers For Childcare is established to make it easier for parents wth dependent children to get into work and to stay in work. We do this by addressing childcare as an economic and a labour market issue. The Charity's purposes, as set out in our governing document, are to advance education, to prevent and relieve poverty and to relieve those in need by reason of financial hardship or other disadvantage by: promoting the provision and use of good quality registered childcare for the benefit of children and their parents providing information on all aspects of childcare and work-related issues, and raising awareness of the support available for parents including financial support with childcare costs, and associated employment rights undertaking and publishing research into all aspects of childcare and work-related issues including parental entitlements and the provision of childcare raising awareness of issues relating to provision of childcare facilities and parental entitlements. These purposes are intended to benefit families, particularly working parents wilh dependent children, and those parents who are seeking to get back into work. More broadly, the public at large benefits through the economic development generated through broadening Ihe pool of potential employees within the workforce, lifting families out of poverty and facilitating children's access to high quality early years education and childcare. The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. Achievements and performance This year marked an incredible milestone for Employers For Childcare. Since 2008, when our Family Benefits Advice Service began, we have identified over £105 million in financial support for families across the UK. This has only been possible as a result of our social enterprise business activities which have enabled us to invest £7.4 million in our charity during that time. Our charity works directly with parents through the Family Benefits Advice Service, and for parents through our research. policy, and lobbying work. To achieve the charity's purposes during the year under review we undertook a range of activities. We continued to deliver support and helped putting money back in the pockets of hard-pressed families and the economy, at what was a challenging time for everyone. We provided a Family Benefits Advisory Service offering free, impartial, and confidential advice and information on childcare and work-related issues both through operating a Freephone helpline and through delivering outreach, for example presentations and one to one advice sessions in community and employer settings. We had over 1 million engagements with our services in person, online though social media and by telephone. We helped over 11,000 people and carried out over 4,400 calculations for parents. In terms of deliveriro impact through the Family Benefits Advice Service - 97 % of parents would recommend our seNices to other parents and 97 % of parents rate the quality of the seNice as excellent or good.
EMPLOYERS FOR CHILDCARE DIRECTORS. REPORT FOR THE YEAR ENDED 31 MAY 2023 Recent feedback from our clients include= "I feel much better informed since speaking with the Family Benefits Advice Service and have been able to take action to maximise my work opportunities knowing the impact this will have on my benerrts" °It's very clear concise and jargon free which is helpful for sewice users." "By providing crucial advice in such a short time of space, this saved us thousands of pounds by making the righl arrangements in time." .1 was told by a universal credit advisor I wasn't going to be entitled to any help but Employers For Childcare could see I was entitled to help. This reduced my anxiety over money." Financial review The results for the period are as set out on pages 10 to 29. The charity returned net outgoing resources of £223,889 (2022 - £151,766). At 31 May 2023 the level of unrestricted reserves held was £2,869,689 (2022- £3,093,578). The Directors are obliged to ensure that sufficient reserves are available to allow the organisation to continue its work in the foreseeable future. From June 2008 the main source of income is the trading activity of Employers For Childcare Trading. The Directors would wish to carry reserves of six month's running costs. Structure, governance and management The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association. The directors who served during the year and up to the date of signature of the financial statements were-. Mrs J Kennedy Mrs S Mccary Prof M McHugh OBE Ms A Mervyn Mrs L Mulholland Mr J O'Neill Mr M Stevenson The Board is responsible for the overall governance of the charity. Directors are either elected or co-opted and the total number of directors shall not be subject to any maximum but shall not be less than two. The Board delegates the exercise of certain powers in connection with the management and administration of the charity to the Audit and Risk Committee. This is controlled by regular reporting back to the Board, so that all decisions made under delegated powers can be ratified by the full board in due course. The Chief Executive Officer is responsible for the day to day management of the Gharity's affairs and for implementing the policies agreed by the Board of Directors.
EMPLOYERS FOR CHILDCARE DIRECTORS, REPORT FOR THE YEAR ENDED 31 MAY 2023 statement of directors, responsibilities The directors who also act as trustees for the charitable activities of Employers for Childcare, are responsible for preparing the Directors, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice). Company Law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity 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 policie5 and then apply them consistently- obsetve the methods and principles in the Charities SORP., make judgements and estimates 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 charity will continue in operation. The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the group and charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor The auditor, GMCG LISBURN, is deemed to be reappointed under section 487{21 of the CompaniesAct 2006. Disclosure of information to auditor Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. This report has been prepared in accordance with the provision applicable to companies entitled to the small companies exemption. The directors, report was approved by the Board of Directors. Ms M Marin OBE Secretary Date..
EMPLOYERS FOR CHILDCARE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE Opinion We have audited the financial statements of Employers for Childcare (the 'parent charitable company,) for the year ended 31 May 2023 which comprise the group statement of financial activities, the group statement of financial position, the company statement of financial position, the group statement of cash flows, the company statement of cash flows and the notes to the financial statements, including 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). In our opinion, the financial statements.. give a true and fair view of the state of the group and charitable company's affairs as at 31 May 2023 and of its incoming resources and application of resources, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing {UK) (ISAS {UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit ol the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard, 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. Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concem are described in the relevant sections of this report.
EMPLOYERS FOR CHILDCARE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE Other information The other information comprises the information included in the annual report other than the finartial statements and our auditorfs report thereon. The directors are responsible for the other information contained within the annual report. Our opinion 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the information given in the directors, report, for the financial year for which the financial statements are prepared is consistent with the financial statements., and the directors, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception Sn the light of the knowledge and understanding of the group and parent 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 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial 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 received all the information and explanations we require 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, exemptions in preparing the directors, report and from the requirement to prepare a strategic report.
EMPLOYERS FOR CHILDCARE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE Responsibilities of directors As explained more fully in the statement of directors, responsibilities, the directors 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 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 financial statements, the directors are responsible for assessing the group's and parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of aco)unting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities 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 audttor'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, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial ststements. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
EMPLOYERS FOR CHILDCARE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE Extent to which the audit was considered capable of detecting irregularities, includlng fraud We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks. including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following: The nature of the industry and Sector, control environment and business performance, including the group's and company's remuneration policies for directors, bonus levels and performance targets, if any,. Results of our enquiries of management about their own identification and assessment of the risks of irregularities., Any matters we identified having obtained and reviewed the group's and company's documentation of their policies and procedures relating to.. Identifying. evaluating and complying with laws and regulations and whether they were aware of any instance of non-compliance., Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud,. and The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations., The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the group and charitable company for fraud and identified the greatest potential for fraud in income recognition. In common with all audits under ISAS (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the group and charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group's and charitable company's ability to operate or to avoid a material penalty.
EMPLOYERS FOR CHILDCARE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE Audit response to risks identifIed Our procedures to respond to the risks identified included the following: Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements., Enquirtng of management concerning actual and potential litigation and claims., Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud., Reading minutes of meetings of those charged with governance and reviewing correspondence with tax authorities., and 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 indicative of a potential bias,. and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition. as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non- compliance with all laws and regulations. A further description of our responsibilities is available on the Financial Reporting Council's website at- https'.11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report.
EMPLOYERS FOR CHILDCARE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitaije company's members 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 members as a body, for our audit work, for this report, or forthe opinions we have formed. Mr Stephen Houston FCA (Senior Statutory Auditor) for and on behalf of GMCG LISBURN Chartered Accountants Statutory Auditor Century House 40 CreSnt Business Park Lisburn BT28 2GN
EMPLOYERS FOR CHILDCARE GROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITUREACCOUNT FOR THE YEAR ENDED 31 MAY 2023 Unrestricted Restricted funds funds 2023 2023 Total Unrestricted Restricted funds funds 2022 2022 Total 2023 2022 Notes Incorn and Donations and legacies Charitable activities Other trading activities Investments Other income 31,115 45,567 31,115 45,567 685,870 86,585 1,955 43,750 43,750 626,347 10,966 15,279 685,870 86,585 1,955 626,347 10,966 15,279 Total income 774,410 76,682 851,092 652,592 43,750 696,342 nditure on: Raising funds 844,435 844,435 556,457 556,457 Charitable activities 166,986 76,682 243,668 262,948 43,750 306,698 Tax on activites (13,122) (13,1221 {15,047) (15,047) Total expenditure 998,299 76,682 1,074,981 804,358 43,750 848,108 Net movement in funds (223,889) {223,889) (151,766) (151,7661 Fund balances at 1 June 2022 3,093,578 3,093,578 3,245,344 3,245,344 Fund balances at 31 May 2023 2,869,689 2,869,689 3,093,578 3,093,578 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 10-
EMPLOYERS FOR CHILDCARE GROUP STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2023 2023 2022 Notes Fixed assets Tangible assets 15 2,303,248 2,416,129 Current assets Stocks Debtors Cash at bank and in hand 17 18 2,328 35,245 6,351,872 30,814 7,856,857 6,389,445 7,887,671 Credltors: amounts falling due within one year 19 (5,756,440) (7,130,536) Net current assets 633,005 757,135 Total assets less current liabilities 2,936,253 3,173,264 Provisions for liabilities 21 (66,5641 (79,686) Net assets 2,869,689 3.093,578 Income funds Unrestricted funds 2,869,689 3,093,578 2,869,689 3,093,578 These financial statements have been prepared in accordance with the provisions applicable lo companies subject to the small companies regime. The financial statements were approved and authorised for issue by the Directors on its behalf by and signed on Mrs S Mccarry Trustee Mr M Stevenson Trustee Company Registration No. N1043041 11
EMPLOYERS FOR CHILDCARE COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2023 2023 2022 Notes Fixed assets Tangible assets 15 1,952,897 1,995,372 Current assets Debtors Cash at bank and in hand 18 94,807 452,440 12,192 783,047 547,247 795,239 Creditors: amounts falling due within one year 19 (11,3441 (189,5381 Net current assets 535,903 605,701 Total assets less current liabilities 2,488,800 2,601,073 Income funds Unrestricted funds 2,488,800 2,601,073 2,488,800 2,601,073 As pemiitted by S408 Companies Act 2006, the charitable company has not presented its own profit and loss account and related notes. The charitable company's deficit for the year was £112,273 (2022 - £40,684) These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Directors and authorised for issue on its behalf by Z&.7.Z4 and signed on Mrs S Mccarry Trustee Mr M Stevenson Trustee Company Registration No. N1043041 12
EMPLOYERS FOR CHILDCARE GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2023 2023 2022 Notes Cash flows from operating activitles Cash absorbed by operations Taxes paid Income taxes refunded 25 (1,589,630) {1,595,8031 2,361 7,125 Investing activities Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Investment income received (9,065) (9,8851 1,329 10,986 86,585 Net cash generated from Investing activities 77,520 2,410 Net cash used In financing activities Net decrease in cash and cash equivalents (1,504,985) 11,591,032) Cash and cash equivalents at beginning of year 7,856,857 9,447,889 Cash and cash equivalents at end of year 6,351,872 7,856,857 13-
EMPLOYERS FOR CHILDCARE COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY2023 2023 2022 Notes Cash flows from operating activities Cash (absorbed by}Igenerated from operations 27 (332,066) 146,864 Investing activities Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Investment income received (4,364) 25 41 1,459 Net cash generated froml(used in) investing activities 1,459 (4,298) Net cash used in financing activities Net (decrease)lincrease in cash and cash equivalents (330,607} 142,566 Cash and cash equivalents at beginning of year 783,047 640,481 Cash and cash equivalents at end of year 452,440 783,047 14-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 Accounting policies Charity information Employers for Childcare is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 11 Blaris Industrial Estate, 11 Altona Road, Lisburn, Co. Antrim, BT27 5QB. 1.1 Accounting convention The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" I'FRS 102.) and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Basis of consolidation The consolidated financial statements incorporate those of Employers for Childcare and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. 1.3 Going concern The charitable group as well as carrying out charitable activities via it's Family Benefits Advice Service also operates the administration of a childcare voucher scheme and an indoor adventure facility, called High Rise. The directors have reviewed the cost structure for High Rise during the 2024 financial year and have taken action to reduce costs and through a concentrated marketing campaign to increase footfall. The charity uses the funds generated from the High Rise facility and the childcare voucher scheme to finance the charitable activities it undertakes. The group meets its day to day working capital requirements through it's own bank reserves and has no external funding. Total funds at bank available for use by the group and charity at the year-end was £692,126 12022 - £814,525) and the directors believe that the charitable group has adequate reserves to self-finance the charitable activities while the trading operations transition. The directors have considered future financial projections and future cash flow requirements and are confident that the company will continue in business for the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statement5 on the going concern basis. 1.4 Charitable funds Unrestricted funds are available for use at the discretion of the directors in furtheran of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 15-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY2023 Accounting policies (Continued) 1.5 Income Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Income from charitable activities provides core funding to support the charity's activities and is recognised in ftjll in the statement of financial activities in the year in which they are receivable, The charity receives govemment grants in respect of the provision of specified services, projects and activities. Income from govemment and other grants are recognised at fair value whèn the Gharity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Income from trading activities provides additional funding to support the charity's activities and is recognised in full in the statement of financial activities in the year in which they are receivable. Investment income is included in the year in which it is receivable. 1.6 Expenditure All expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under one of the following headings.. Costs of raising funds, Expenditure on charitable activities and Other expenditure. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, depreciation costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at the office. Office costs, depreciation costs governance costs and payroll costs are allocated to charitable activities based on useage. The allocation of the support costs is analysed in note 11. 1.7 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Freehold land and buildings Fixtures and fittings Computers 20/0 & 12.50/0 Straight Line 100/0 33.33 % Straight Line 33.33% Straight Line The gain or loss arising on the disposal of an asset is determined as the difference beeen the sale proceeds and the carying value of the asset, and is recognised in the statement of financial activities. 16-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 Ac¢ountlng policies (Continued) 1.8 stocks Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Nel realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.10 Flnanclal instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes paty to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction pri including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 17-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 Accounting policies (Continued) 1.11 Taxation There is no liability in respect of the Chartty due to the charitable status. Taxation in the year comprises current and deferred tax and relates to the activities of the charity's subsidiary company. Tax is recognised in the Income Statement, except to the extent that it relates to items COgniSed in other comprehensive income or directly in equity. Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. Deferred tax Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tsx rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority. 1.12 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Temiination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.13 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Critical accounting estimates and judgements In the application of the charity's accounting policies, the directors are required to make judgements, estimates and assumptions about the carying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that pertod, or in the period of the revision and future periods where the revision affects both current and future periods. 18
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 Critical accounting estimates and judgements {Continuedl Key sources of estimation uncertalnty Flxed assets The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these assets lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisaticn and physical condition of the assets concerned. Changes in assets lives can have a significant impact on depreciation charges for the period. Detail of the useful lives is included in the accounting policies. Donations and legacles Restricted funds Total 2023 2022 The Rank Foundation 31,115 Charitable activities Restricted Restricted Funds Funds 2023 2022 Services provided under contract 45,567 43,750 Other trading activities Unrestricted Unrestricted funds funds 2023 2022 Childcare voucher administration fees High Rise Income 478,225 207,645 626,347 Other trading activities 685,870 626,347 19-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 Investments Unrestricted Unrestricted funds funds 2023 2022 Interest receivable 86,585 10,966 Other income Unrestricted Unrestricted funds funds 2023 2022 Miscellaneous income Other coronavirus funding Insurance claim receivable 1,955 160 10,000 5,119 1,955 15,279 Raising funds Unrestricted Unrestricted funds funds 2023 2022 Trading costs Staff costs Depreciation and impaimient Share of support costs (see note 11) 218,295 527,190 92,214 6,736 80,836 379,815 90,480 5,326 844,435 556,457 -20-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 Charitable activities 2023 2022 staff costs Depreciation and impairment Travel Printing & publicity 155,230 25,485 3,270 712 221,757 25,561 1,400 792 184,697 249,510 Share of support costs (see note 111 Share of governance costs (see note 11) 30,146 28.825 12,390 44,798 243,668 306,698 Analysis by fund Unrestricted funds Restricted funds 166,986 76,682 262,948 43,750 243,668 306,698 10 Description of charitable activities To make it easier for parents with dependent children to get into work and to stay in work. 21
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 11 Support costs Support Governance costs Costs 2023Support costs Govemance costs 2022 Staff costs Depreciation Telephone Computer costs Premises expenses Insurance Bank fees Security costs Postage and stationery Legal & Professional Sundry expenses Staff training and recruitment 8,792 4,247 204 648 539 263 8,792 4,247 2,038 6,476 5,385 2,626 296 368 2,007 10,142 1,769 23,108 4,260 193 628 305 229 23,108 4,260 1,931 6,280 3,054 2,290 226 126 1,766 14,002 1,130 1,834 5,828 4,846 2,363 296 331 2,007 224 1,592 1,738 5,652 2,749 2,061 226 113 1,766 803 1,017 37 13 9,918 177 13,199 113 17,561 17,561 1,591 1,591 Audit fees 4,000 4,000 2,750 2,750 36,882 28,825 65,707 17,716 44,798 62,514 Analysed beeen Raising funds Charitable activities 6,736 30,146 6,736 58,971 5,326 12,390 5,326 57,188 28,825 44,798 36,882 28,825 65,707 17,716 44,798 62,514 The basis of allocation of the support costs identified above is a mixture of the percentage of time spent on each activity and the pro rata cost of each direct cost when compared to the support cost. Governance costs includes payments to the auditors of £4,000 (2022- £2,750) for audit fees. 12 Directors None of the directors (or any persons connected with them) received any remuneration or benefits from the harity durtng the year. 13 Employees The average monthly number of employees during the year was.. 2023 Number 2022 Number 41 16 -22-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 13 Employees {Continuedl Employment costs 2023 2022 Wages and salaries Social security costs Other pension costs 614,170 48,791 28,252 415,965 35,319 173,396 691,212 624,680 Included in the pension costs in the prior year is £148,099 paid as settlement on withdrawing from the multi- employer defined benefit scheme that the charity previously participated in. The charity considers its key management personnel to comprise of the Chief Executive Officer and the senior management team. The total employment benertS including employer pension contributions of the key management personnel were £208,69112022 - £184,078). The number of employees whose annual remuneration was more than £60,000 is as follows.. 2023 Number 2022 Number £60,000 to £80,000 14 Taxation The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gain5 Act 1992 to the extent that these are applied to its charitable objects. 23-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 15 Tangible fixed assets Group Freehold Fixtures and Computers land and fIttings buildings Total Cost At 1 June 2022 Additions Disposals 2,121,255 635,347 4,437 48,107 4,628 2,804,709 9,065 At 31 May 2023 2,121,255 639,784 52,735 2,813,774 Depreciation and impairment At 1 June 2022 Depreciation charged in the year Eliminated in respect of disposals 125,268 42,570 219,835 76,291 43,477 3,085 388,580 121,946 At 31 May 2023 167,838 296,126 46,562 510,526 Carrying amount At 31 May 2023 1,953,417 343,658 6,173 2,303,248 At 31 May 2022 1,995,987 415,512 4,630 2,416,129 -24-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 15 Tangible fixed assets (Continued) Charlty Freehold Fixtures and Computers land and fittings buildings Total Cost At 1 June 2022 2,106,783 2,696 5,492 2,114,971 At 31 May 2023 2,106,783 2,696 5,492 2,114,971 Depreciation and impalrment At 1 June 2022 Depreciation charged in the year 111,901 42,136 2,696 5,002 339 119,599 42,475 At 31 May 2023 154,037 2,696 5,341 162,074 Carrying amount At 31 May 2023 1,952,746 151 1,952,897 At 31 May 2022 1,994,882 490 1,995,372 16 Subsidaries Details of the Charity's subsidiary at 31 May 2023 is as follows- Ernployers for Childcare Trading Limited Registered office.. 11 Blaris Industrial Estate, 11 Altona Road, Lisburn, BT27 5QB Nature of business.. Other business support activities This company is limited by guarantee and is deemed to be controlled by the charity. 17 Stocks 2023 2022 Finished goods and goods for resale 2,328 18 Debtors 2023 2022 Amounts falling due within one year: Group Trade debtors Corporation tax recoverable Other debtors Prepayments and accrued income 1,687 3,129 7,125 4.263 16,297 9,624 23,934 35,245 30,814 -25-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 18 Debtors (Continued) 2023 2022 Charity Amounts owed by subsidiary undertakings Other debtors Prepayments and accrued income 77,597 9,624 7,586 4,263 7,929 94,807 12,192 19 Creditors: amounts falling due within one year 2023 2022 Notes Group Other taxation and social securlty Deferred income Vouchers payable Trade creditors Other creditors Accruals and deferred income 28,529 35,991 14,000 6,871,178 9,732 176,554 23,081 20 5,659,746 23,923 7,306 36,936 5,756,440 7,130,536 2023 2022 Charity Other taxation and social security Trade creditors Amounts owed to subsidiary undertakings Other creditors Accruals and deferred income 25 82 8,201 734 1,791 171,827 6,985 1,462 9,775 11,344 189,538 20 Deferred income 2023 2022 Deferred income 14,000 -26-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 20 Deferred income (Continued) Deferred income is included in the financial statements as follows.. 2023 2022 Deferred income is included within.. Current liabilities 14,000 Movements in the year.. Deferred income at 1 June 2022 Released from previous periods Resources deferred in the year 14,000 (14,000) 14,000 Deferred income at 31 May 2023 14,000 Included in deferred income is £nil (2022 £14,000) relating to grant monies received from The Rank Foundation. 21 Provisions for Siabilities 2023 2022 Deferred tax liabilities 66,564 79,686 66,564 79,686 22 Restricted funds The income funds of the charity include restricted funds comprising the following unexpended balan$ of donations and grants held on trust for specific purposes.. Movement in funds Incoming Resources Balance at resources expended 1 June 2022 Movement in funds Incoming Resources Balance at resources expended 31 May 2023 Health & Social Care Trust The Rank Foundation 43,750 143,750) 45,567 31,115 (45,567) {31,115) 43,750 (43,750) 76.682 (76,682) Health & Social Care Trus To enable Family Benefits Advice servi to provide information, advice and guidance to families. The Ra ion Towards employment of a new 3-year entry level position within the organisation. 27-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 23 Analysis of net assets between funds Unrestricted Restricted funds funds 2023 2023 Total Unrestricted funds 2022 Restricted funds 2022 Total 2023 2022 Fund balances at 31 May 2023 are represented by- Tangible assets Current assetsl(liabilities) Provisions 2,303,248 633,005 {66,564) 2,303,248 2,416,129 633,005 757,135 {66,5641 (79,686) 2,416,129 757,135 (79,686) 2,869,689 2,869,689 3,093,578 3,093,578 24 Related paty transactions There were no disclosable related party transactions during the year {2022 - none). 25 Cash generated from group operations 2023 2022 Deficit for the year (223.889) (151,7661 Adjustments for.. Investment income recognised in statement of financial activities Gain on disposal of tangible fixed assets Depreciation and impaimient of tangible fixed assets Settlement of pension obligations Taxation (86,585) (10,966) {119) 120,420 (16,877) (15,047) 121,946 (13,122) Movements in working capital.. (Increase) in stocks {Increase)/decrease in debtors (Decrease) in creditors (Decrease)Iincrease in deferred income (2,328) (11,556) 2,837 (1,360,096) (1,538,285) (14,000) 14,000 Cash absorbed by operations (1,589,630) (1,595,803) 26 Analysis of changes in net funds - group The charity had no debt during the year. -28-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023 27 Cash generated from operations - charity 2023 2022 Deficit for the year (112,273) (40,684) Adjustment5 for.. Investment income recognised in statement of financial activilies Gain on disposal of tangible fixed assets Depreciation and impairment of tangible fixed assets Difference between pension charge and cash contribution5 {1,4591 (41) (25) 42,626 {16,877) 42,475 Movements in working capital.. Ilncrease)Idecrease in debtors IDecrease)lincrease in creditors (82,615) (178,194) 24,462 137,403 Cash (absorbed by)Igenerated from operations (332,066) 146,864 28 Analysis of changes in net funds The charity had no debt during the year. -29-