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 acttvities, the group statement of financial position, the company statement of financial posrtion. 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 Reporbng Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally ACpted Accounting Practice). In our opinion, the financial statements- give a true and fair view of the state of the group and charitable cornpany'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 Untted lfjngdom Generally Accepted Accounting Practi. and have been prepared in accordance wtth the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) {ISAs {UK)l and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audft ol the financial statements section of our report. We are independent of the chaty in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with Ihese requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to goin9 concern In auditing the financial statements, we have conduded 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 perfomied. we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast Significant doubt on the charÉty'S ability to continue as a going concem for a period of at least tsvelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going cOnM 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 fInala1 slalements and our auditorfs report thereon. The directors are responsible for the other infomiation contained within the annual report. Our opinion on the financial statements does nol cover the other information and. except lo the extent otherwise explicitly stated in our report, we do not express any form of assurance condusion thereon. Our responsibility is to read the other infomialion 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 stalemenls themselves. If. based on the work we have perfomed, we conclude that there is a material misstatement of this other infomiation, 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 infomiation 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 wth applicable legal requirements. Matters on whl¢h we are required to report by exception In the light of the knowledge and understanding of the group and parent charitable company and ils 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 Cornpanies Act 2006 requires us to report to you if, in our opinion= adequate accounting records have not been kept, or retums 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 retums". 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 lake advantage ofthe small companies, exemptions in pparing 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 d1ctOrS As explained rnore fully in the statement of directors. responsibilf(ies. the directors are responsible for the preparation of the financial statements and for being satisfied thal they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparats'on 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 charf(able companYs abilty to continue as a going concem, disclosing, as applicable, matters related to going concem and using the going concem basis of aco)unting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic artemative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the finanual statements as a whole are free from material misststement, whether due to fraud or error. and to issue an audttorfs report that includes our opinion. Reasonable assurance is a high level of assuran but is not a guarantee that an audit conducted in accordance th ISAS IUKI wll always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregulartiies, 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, including 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 audil evidenTr that is sufficienl and appropriate to provide a basis for our opinion. In identifying and assessing potential risks of material misstatement in respect of irregularitie& including fraud and non-complian5 with laws and regulations, we considered the followng.. The nature ofthe industry and sector, control environment and bu5ine5s perfomiance, including the group's and company's remuneration policies for direclors, 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 Ihe 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., Delecting and responding to the risks of fraud and whether they have knoedge of any actual, suspected or alleged fraud". and The intemal controls established to Mgate 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 polents.al 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 perfomi specific procedures lo respond to the rsk of management override. We also obtained an understanding of the legal and regulatory frameworks thal the group and charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of rnaterial 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. Iri addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance wth which may be fijndamental to the group's and charitable companls 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 followng: Reviewng the financial statement disdosures 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.. Enquiring of management conmIng actual and potential litigation and claims- Perfomiing 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 wtlh governance and reviewing correspondence wth 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 indicab.ve 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 remainéd alert to any indications of fraud or non-compliance wth 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 statemenls, even though we have properfy planned and perfomied our audit in accordan wth auditing standards. In addition. as with any audit, there remains a higher risk of non-detection ol irregularities, as they may involve collusion, forgery. intentional omissions. misrepresentations, or the override of internal controls. We are not responsible for preventing nOrcomplIance 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 Counal's website at-. https=Il ww.frc.org.ukJauditorsresponsibilities. This description fomis part of our auditors 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 lo the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006. Our audil work has been undertaken so thal we might state to the charitae company's members those matters we are required to state to them in an auditorfs 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 U//"* Chartered Accountants Statutory Auditor Century House 40 Crescent Business Park Lisbum BT28 2GN