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 2024
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 Charity number NIC101176 Company number N1043041 Principal address 11 Blaris Industrial Estate 11 Altona Road Lisburn CoAntrim BT27 5QB Registered office 11 Blaris Industrial Estate 11 Altona Road Lisburn CoAntrirn BT27 5QB Auditor GMCG LISBURN Century House 40 Crescent Business Park Lisburn BT28 2GN Bankers Danske Bank 45-48 High Street Portadown Craigavon Co Armagh BT62 1 LB Solicitors Edwards & Co 28 Hill Street Belfast BT12LA Worthingtons 24-38 Gordon Street Belfast BT12LG
EMPLOYERS FOR CHILDCARE CONTENTS Page Directors, report Independent auditors report Group Statement of financial activities 10 Group Statement of financial position 11 Company Statement of financial postion 12 Group Statement of cash flows Company statement of cash flows 14 Notes to the financial statements 15-29
EMPLOYERS FOR CHILDCARE DIRECTORS. REPORT FOR THE YEAR ENDED 31 MAY 2024 The directors present their annual report and financial statements for the year ended 31 May 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply 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 with 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 with 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 the 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 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. Our social enterprise business activities enabled us to invest in our charity during that time. 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. During the period our Family Benefits Advice Service helped 8,301 clients across the UK and identified over £12million in financial support for families. In terms of delivering impact through the Family Benefits Advice Service - 1000/0 of parents would recommend our services lo other parents and 100% of parents rate the quality of the service as excellent or good. Financial review The results for the period are as set out on pages 10 to 29. The charity returned net outgoing resources of £244,441 (2023- £223,889). At 31 May 2024 the level of unrestricted reserves held was £2,825,248 {2023- £2,869,689}. The Directors are obliged to ensure that sufficient reseNes 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.
EMPLOYERS FOR CHILDCARE DIRECTORS, REPORT FOR THE YEAR ENDED 31 MAY 2024 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 MSA 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 wth 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 charity's affairs and for implementing the policies agreed by the Board of Directors. 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 Generally Accepted Accounting PractiTr). 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 chartty 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 then apply them consistently. observe 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(2) of the CompaniesAct 2006.
EMPLOYERS FOR CHILDCARE DIRECTORS. REPORT FOR THE YEAR ENDED 31 MAY 2024 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 su¢h 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 2024 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 2024 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 International Standards on Auditing {UK) IISAS (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 Standard, and we have fvlfilled 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 concern basis of accounting in the preparation of the financial ststements 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 th& charity's ability to continue as a going concem 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 financial statements and our auditoff s 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 prescribed 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 whlch we are requlred to report by exceptlon In 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 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 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 ststement 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 intemal 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 charttable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting 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 obtsin 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 audtt 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 statements. 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, 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 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 (UKI, 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 Ihe 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-, Enquiring of management concerning actual and potential litigation and claims- Performing analytical prOdureS 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 govemance and reviewing correspondence with tax authorities-, and In addressing the risk of fraud through management override of controls, testing the appropriateness of joumal 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 stsndards. 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 .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 charitatrje 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 Crescent Business Park Lisburn BT28 2GN
EMPLOYERS FOR CHILDCARE GROUP STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITUREACCOUNT FOR THE YEAR ENDED 31 MAY 2024 Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Notes In and en Donations and legacies Charitable activities Other trading activities Investments Other income 14,000 41,667 14,000 41,667 826,629 167,190 6,019 31,115 45,567 31,115 45,567 685,870 86,585 1.955 826,629 167,190 6,019 685,870 86,585 1,955 Total income 999,838 55,687 1,055,505 774,410 76,682 851,092 enditure on: Raising funds 972,638 972,638 844,435 844,435 Charitable activities 279,519 55,667 335,186 166,986 76,682 243,668 Tax on activtties 14 (7,878) 17,878) (13,122) (13,122) Total expenditure 1,244,279 55,667 1,299,946 998,299 76,682 1,074,981 Net movement in funds (244,4411 (244,441) (223,889) {223,889) Fund balances at 1 June 2023 2,869,689 2,869,689 3,093,578 3,093,578 Fund balances at 31 May 2024 2,625,248 2,625,248 2,869,689 2,869,689 The statement of financial activities includes all gains and losses recognised in the year. 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 2024 2024 2023 Notes Fixed assets Tangible assets 15 2,222,446 2,303,248 Current assets Stocks Debtors Cash at bank and in hand 17 18 19 2,328 23,966 5,237,430 2,328 35,245 6,351,872 5,263,724 6,389,445 Creditors: amounts falling due within one year 20 (4,802.2361 {5,756,440) Net current assets 461,488 633,005 Total assets less current liabilities 2,683,934 2,936,253 Provisions for liabilities 21 (58,686) (66,564) Net assets 2,625,248 2,869,689 Income funds Unrestricted funds 2,625,248 2,869,689 2,625,248 2,869,689 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 and authorised for issue by the Directors on its behalf by 13,Z. Li and signed on Mrs S Mccarry Trustee Mr J O'Neill Trustee Company Registration No. N1043041 11
EMPLOYERS FOR CHILDCARE COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 2024 2024 2023 Notes Fixed assets Tangible assets 15 1,910,611 1.952,897 Current assets Debtors Cash at bank and in hand 18 140,086 258,244 94,807 452,440 398,330 547,247 Creditors: amounts falling due within one year 20 (39,893) (11,344} Net current asset5 358,437 535,903 Total assets less current liabilities 2,269,048 2,488,800 Income funds Unrestrtcted funds 2,269,048 2,488,800 2,269,048 2,488,800 As permitted 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 £219,781 (2023- £112,273) 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 d signed on 4&0 Mrs S Mccarry Trustee Mr J O'Neill Trustee Company Registration No. N1043041 12-
EMPLOYERS FOR CHILDCARE GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2024 2024 2023 Notes Cash flows from operating activities Cash absorbed by operations Income taxes refunded 25 (1,273,571) {1,589,630} 7,125 Investing activities Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Investment income received (9,121) (9,0651 1,060 167,190 86,585 Net cash generated from investing activities 159,129 77,520 Net cash used in financing activities Net decrease in cash and cash equivalents (1,114,442) 11,504,985) Cash and cash equivalents at beginning of year 6,351,872 7,856,857 Cash and cash equivalents at end of year 5,237,430 6,351,872 13-
EMPLOYERS FOR CHILDCARE COMPANY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2024 2024 2023 Notes Cash flows from operating activities Cash absorbed by operations 27 (197,979) (332,066) Investing activities Investment income received 3,783 1,459 Net cash generated from investing activities 3,783 1,459 Net cash used in financing activities Net decrease in cash and cash equivalents (194,196) (330,607) Cash and cash equivalents at beginning of year 452,440 783,047 Cash and cash equivalents at end of year 258,244 452,440 14-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024 Accounting policies Charity informatlon 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. ("FRS 102,1 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 1021" (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 Change in accounting estimate The directors reviewed the depreciation policy in the year. and as a result the depreciation rates were changed. The depreciation rate for fixtures, fittings and equipment was changed from 10 % straight line to 5 % straight line, with depreciation decreasing by £33,615. 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 2025 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 £516,523 (2023 - £692,126) 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 statements on the going concern basis. 1.4 Charitable funds Unrestricted funds are available for use at the discretion of the directors in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors or grantors 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. 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 lo support the charity's activities and is recognised in full in the statement of financial activities in the year in which they are receivable, 15-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 Accounting policies (Continued) The charity receives government grants in respect of the provision of specified services, projects and activities. Income from govemment and other grants are recognised at fair value when the charity 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 impainnent 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 followng bases= Freehold land and buildings Fixtures and fittings Computers 2 % & 12.5 % straight Line 33.33 % Straight Line 33.330/0 Straight Line The gain or loss arising on the disposal of an asset is detemiined as the difference between the sale proceeds and the carying value of the asset. and is recognised in the statement of financial activities. 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. Net 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 wtthin borrowings in current liabilities. 16-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 Accounting policies (Continued) 1.10 Financial 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 party 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 basi5 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 price including transaction costs and are subsequently carried al 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 liabiSities, including creditors and bank loans are initially recogni5ed 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 wrthin 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 Ihat 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 presenled 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 2024 Accounting policies (Continued) 1.11 Taxation There is no liability in respect of the Charity 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 recognised 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 e£(ent 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 tax 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 temiinate 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 period, 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 2024 Critical accounting estimates and judgements (Continued) Key sources of estimation uncertainty Fixed 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 concemed. 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. Income from donations and legacies Restricted funds 2024 Restricted funds 2023 The Rank Foundation 14,000 31,115 Charitable activities Restricted Restricted Funds Funds 2024 2023 Services provided under contract 41,667 45,567 Income from other trading activities Unrestricted Unrestricted funds funds 2024 2023 Childcare voucher administration fees High rise income 356,838 469,791 478,225 207,645 Other trading activities 826,629 685,870 19-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 Income from investments Unrestricted Unrestricted funds funds 2024 2023 Interest receivable 167,190 86,585 Other income Unrestricted Unrestricted funds funds 2024 2023 Miscellaneous income 6,019 1,955 Raising funds Unrestricted Unrestricted funds funds 2024 2023 Trading costs staff costs Depreciation and impairment Share of support costs (see note 11) 284,447 622,981 59,262 5,948 218,295 527,190 92,214 6,736 972,638 844,435 -20-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 Charitable activities 2024 2023 Staff costs Depreciation and impairment Travel Printing & publicity 209,991 25.371 4,521 465 155,230 25,485 3,270 712 240,348 184,697 Share of support costs (see note 11) Share of governance costs (see note 11) 8,093 86,745 30,146 28,825 335,186 243,668 Analysis by fund Unrestricted funds Restricted funds 279,519 55,667 166,986 76,682 335,186 243,668 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 MAY2024 11 Support costs Support Governance costs costs 2024Support costs Govemance costs 2023 Staff costs Depreciation Telephone Computer costs Premises expenses Insurance Bank fees Security costs Postage and stationery Legal & Professional Sundry expenses staff training and recruitment 18,932 4,228 246 711 328 300 18,932 4,228 2,463 7,110 3,284 3,002 277 41 1,548 58,124 727 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 2,217 6,399 2,956 2,702 277 37 1,548 551 654 1,834 5,828 4,848 2,363 296 331 2,007 224 1,592 37 57,573 73 9,918 177 (3,300) (3,300) 17,561 17,561 Audit fees 4,350 4,350 4,000 4,000 14,041 86,745 100,786 36,882 28,825 65,707 Analysed between Raising funds Charitable activities 5,948 8,093 5,948 94,838 6,736 30,146 6,736 58,971 86,745 28,825 14,041 86,745 100,786 36,882 28,825 65,707 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. Govemance costs includes payments to the auditors of £4,350 (2023- £4,000) for audit fees. 12 Directors None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the year. 13 Employees The average monthly number of employees during the year was.. 2024 Number 2023 Number 57 41
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 13 Employees (Continued) Employment Costs 2024 2023 Wages and salaries Redundancy costs Social security costs Other pension costs 754,570 12,194 56,037 29,103 614,170 48,791 28,252 851,904 691,212 The charity considers its key management personnel to comprise of the Chief Executive Officer and Ihe senior management team. The total employment benefits including employer pension contributions of the key management personnel were £173,11912023 - £208,691). The number of employees whose annual remuneration was more than £60,000 is as follows.. 2024 Number 2023 Number £60,000 to £80,000 £80,001 to £90,000 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 Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. Deferred taxation credit of £7,878 (2023 - credit of £13,122) relates to the origination and reversal of timing differences. -23-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 15 Tangible fixed assets Group Freehold Fixtures and Computers land and fittings buildings Totsl Cost At 1 June 2023 Additions Disposals 2,121,255 639,784 7,281 (1,910) 52,735 1,840 2,813,774 9,121 11,910) At 31 May 2024 2,121,255 645,155 54,575 2,820,985 Depreciation and impairment At 1 June 2023 Depreciation charged in the year Eliminated in respect of disposals 167,838 42,571 296,126 43,396 11,415) 46.562 3,461 510,526 89,428 11,415) At 31 May 2024 210,409 338,107 50,023 598,539 Carrying amount At 31 May 2024 1,910,846 307,048 4,552 2,222,446 At 31 May 2023 1,953,417 343,658 6,173 2,303,248 -24-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 15 Tangible fixed assets {Continued) Charity Freehold Fixtures and Computers land and fittings buildings Total Cost At 1 June 2023 2,106,783 2,696 5,492 2,114,971 At 31 May 2024 2,106,783 2,696 5,492 2,114,971 Depreciation and impairment At 1 June 2023 Depreciation charged in the year 154,037 42,136 2,696 5,341 150 162.074 42,286 At 31 May 2024 196,173 2,696 5,491 204,360 Carrying amount At 31 May 2024 1,910,610 1,910,611 At 31 May 2023 1,952,746 151 1,952,897 16 Subsidaries Details of the charity's subsidiary at 31 May 2023 is as follows.. Employers 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 2024 2023 Finished goods and goods for resale 2,328 2,328 18 Debtors 2024 2023 Amounts falling due within one year: Group Trade debtors Other debtors Prepayments and accrued income 3,098 1,687 9,624 23,934 20,868 23,966 35,245 25-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 18 Debtors (Continued) 2024 2023 Charity Amounts owed by subsidiary undertakings Other debtors Prepayments and accrued income 127,386 77,597 9,624 7,586 12,700 140,086 94,807 19 Cash at bank Cash at bank includes £4,720,907 (2023 - £5,668,727) which relates to vouchers payable and is restricted client money and is not available for the use by the charitable group. 20 Creditors: amounts falling due within one year 2024 2023 Group Other taxation and social security Vouchers payable Trade creditors Other creditors Accruals and deferred income 42,614 4,676,818 23,976 11,065 47,763 28,529 5,659,746 23,923 7,306 36,936 4,802,236 5,756,440 2024 2023 Charity Other taxation and social security Trade creditors other creditors Accruals and deferred income 9,546 3,523 401 26,423 25 82 1,462 9,775 39,893 11,344 -26-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 21 Provisions for liabilities 2024 2023 Deferred tax liabilities 58,686 66,564 58,686 66,564 Movements in the year Total Liability at 1 June 2023 Expense to profit or loss 66,564 {7,878) Liability at 31 May 2024 58,686 22 Retirement beneflt schemes 2024 2023 Defined Contribution schemes Charge to profit or loss in respect of defined contribution schemes 29,103 28,252 The charity operates a defined Contribution pension scheme for all qualifying employee5. The assets of the scheme are held separately from those of the charity in an independently administered fund. 23 Restricted funds The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. At 1 June 2023 Incomlng resources Resources expended At 31 May 2024 Health & Social Care Trust The Rank Foundation 41,867 14,000 141,667) 114,000) 55,667 (55,667) Previous year: At 1 June 2022 Incoming resources Resources expended At 31 May 2023 Health & Social Care Trust The Rank Foundation 45,567 31,115 (45,5671 131,115) 76,682 (76,6821 -27-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 23 Restricted funds {Continued) h&Soci rust To enable Family Benefits Advice Se1 to provide information, advice and guidance to families. The Rank F dation Towards employment of a new 3-year entry level position within the organisation. 24 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific Conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. At 1 June 2023 Incoming resources Resources expended At 31 May 2024 General funds 2,869,689 999,838 (1,244,279) 2,625,248 Previous year: At 1 June 2022 Incoming resources Resources expended At 31 May 2023 General fvnds 3,093,578 774,410 {998,299) 2,869,689 25 Analysis of net assets between funds Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Fund balances at 31 May 2024 are represented by= Tangible assets Current assetsl{liabilities) Provisions 2,222,446 461,488 (58,686) 2,222,446 2,303,248 461,488 633,005 (58,686) (66,564) 2,303,248 633,005 (66,564) 2,625,248 2,625,248 2,869,689 2,869,689 26 Related party transactions There were no disclosable related paty transactions during the year (2023- none). -28-
EMPLOYERS FOR CHILDCARE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2024 27 Cash generated from group operations 2024 2023 Deficit for the year (244,441) (223,889) Adjustments for.. Investment income recognised in statement of financial activities Gain on disposal of tangible fixed assets Depreciation and impairment of tangible fixed assets Taxation (167,190) {5671 89,428 (7,8781 (86,585) 121,946 (13,1221 Movements in working capital: (Increase) in stocks Decreasel(increasel in debtors (Decrease) in creditors (Decrease) in deferred income {2,3281 11,281 (11,556) {954,204) {1,360,0961 (14,0001 Cash absorbed by operations (1,273,571) {1,589,630} 28 Analysls of changes in net funds - group The charity had no debt during the year. 27 Cash generated from operatlons - charity 2024 2023 Deficit for the year (219,781) {112,273) Adjustments for.. Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets (3,783) 42,286 (1,459) 42,475 Movements in working capital.. (Increase) in debtors Increaselldecrease) in creditors (45,279) 28,578 (82,615) (178,194) Cash absorbed by operations (197,979) (332,066) 28 Analysis of changes in net funds The charity had no debt during the year. 29-