COMPANY REGISTRATION NUMBER: N1603898 CHARITY REGISTRATION NUMBER: 105710 Happy Days Community Childcare Centre Company Limited by Guarantee Financial Statements - 31 March 2023 AUBREY CAMPBELL & COMPANY Chartered Accountants & statutory auditor 631 Lisburn Road Belfast BT9 7GT
Happy Days Community Childcare Centre Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2023 2023 Restricted funds Total funds Total funds 2022 Unreslricted funds Note Income and endowments Donations and legacies Covid Recovery Grants Investment income Government Grants 658,434 3,660 78 6,491 664,925 3,660 78 635,801 30,180 39 2,975 Total income 662.172 6,491 668,663 668,995 Expenditure Expenditure on charitable activities Total expenditure 9,10 670,415 5,237 675,652 627,710 670,415 5,237 675,652 627.710 Net {expenditure}lincome and net movement in funds (8,243) 1,254 16,989) 41,285 Reconciliation of funds Total funds brought forward Total funds carried forward 38,956 1.384 40,340 1945) 40,340 30,713 2,638 33,351 The statement of financial activities includes all gains and losse5 recognised in the year. All income and expenditure derive from continuing aclivities. The notes on pages 18 to 27 form part of these financial statements. 15
Happy Days Community Childcare Centre Company Limited by Guarantee Statement of Financial Position 31 March 2023 2023 2022 Note Fixed assets Tangible fixed assets 15 9.736 10,277 Current assets Debtors Cash at bank and in hand 16 3,809 75,825 3,593 85,370 79,634 88,963 Creditors: amounts falling due within one year Net current assets 17 51.919 54,200 34,763 27,715 Total assets less Current liabilities 37,451 45,040 Creditors: amounts falling due after more than one year 18 4,100 4,700 Net assets 33.351 40,340 Funds of the charity Restricted funds Unrestricted funds 2,638 30.713 1,384 38,956 Total charity funds 21 33,351 40,340 These financial statements were approved by the board of trustees and authorised for issue on 28 November 2023, and are signed on behalf of the board by: Pastor J Payne Trustee Mrs H Kyle Trustee The notsg on pages 18 to 27 forni part of these flnanclal staternents. 16
Happy Days Community Childcare Centre Company Limited by Guarantee Statement of Cash Flows Year ended 31 March 2023 2023 2022 Cash flov from operating activities Nel {expenditure)lincome {6,989) 41,285 Adjustments for.. Depreciation of langible fixed assets Other interest receivable and similar income Accrued expenses Government grant income Covid recovery grants 3,191 (78} 88 3,252 (39) 7.053 (2,975) 130,180) 13.660) Changes in.. Trade and other debtors Trade and other creditors (304) (2,8811 (10,633) 11,103) 12,286) 15,007 Cash generated from operations Interest received 78 39 Net cash (used in)Ifrom operating activities {10,555) 15,046 Cash flolvs from investing activities Purchase of tangible assets Net cash used in investing activities (2,650} (2,650) 14,501) 14,501) Cash flows from financing activities Government grant income Covid recovery Grants Net cash from financing activities 2,975 30,180 3,660 3,660 33,155 Net (decrease)lincrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (9,5451 85,370 43,700 41,670 75,825 85,370 Tho notes on pages 18 to 27 forni part of these financlal statements. 17
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Ststements Year ended 31 March 2023 General information The charity is a public benefit entity and a private company limited by guarantee, registered in N Ireland and a registered charity in Northern Ireland. The address of the registered ofFice is 14 Garryduff Road, 8allymoney, BT53 7AF. Statement of compliance These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,, the 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) (Charities SORP (FRS 102)) and the Companies Act 2006. Accounting policies Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilitie5 and investment properties measured at fair value through income or expenditure. The financial statements are prepared in sterling. which is the functional currency of the entity. Going concern The accounts have been prepared on the going concern basis, and in doing so it has been assumed that the company will be able to continue in operational existence for the foreseeable future and to meet its liabilities as they fall due. In discussing the going concem status of the company in the short to medium term, the Trustees are satlsfied that there continues to be a demand for high quality childcare in the local area, and that Happy Days Community Childcare Centre has successfully maintained its market share. The Trustees reiterate their belief that should the need arise, the business will have the full backing of the Church of God, which owns the property from which Happy Days operates, and was instrumental in its establishment. The Trustees are mindful, however, that should income fall or expenditure increase pervasively, the going concern basis of preparation may become invalid. In conclusion, the financial statements have been prepared on a going concern basis, the validity of which depends on the operational success of the charity and ongoing support from the third parties alluded to above. They do not include any adjustments that would result from un-maintainable losses or the withdrawal of this support. In such circumstances, the going concern basis of preparation may become invalid, and adjustments would have to be made to reduce the value of assets to their recoverable amount to to provide for any further liabilities which might arise, and to reclassify fixed assets as current assets. 18
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Accounting policies {¢ontinuedJ Judgements and key sources of estimation uncertalnty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Fund accounting Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular fulure project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes.. restricted income funds or endowment funds. Incoming resources All incoming resources are included in the statement of financial activities when entitlement has passed to the charity., it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income- income from donations or grants is reGognised when there is evidence of entitlement lo the gift, receipt is probable and its amount Can be measured reliably. legacy income is recognised when receipt is probable and entitlement is established. income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a conlraclual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. 19
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Ststements (continued) Year ended 31 March 2023 Accounting policies (continuedj Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates.. expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries. including those support costs and costs relating to the governance of the charity apportioned to charitable activities. other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned btheen the activities they contribute to on a reasonable, justifiable and consistent basis. Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown wilhin other recognised gains and losses on the statement of financial activities. Depreciatlon Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows= Motor Vehicles Equipment 25% reducing balance 20 % straight line Impairment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. 20
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 Accounting policies (continued) Impairment of fixed assets (conunued) For the purposes of impaimient testing, when it is not POS5ible to estimate the recoverable amount of an individual asset, an estimate 15 made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generales cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocaled to each of the cash-generating units that are expected lo benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units. Short temi employee benefits The company provides short term benefits including holiday pay to their employees. These are recognised as an expense in the period in which the service is received. Financial instruments A financial asset or a financial liability is recognised only when the charity becomes a paty to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any relaled transaGlion costs. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Where investments in shares are publicly traded or their fair value can othewise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. 21
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 Accounting policies (continued) Financial instruments (continued) For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. Defined contribution plans Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on discounted present value basis. The unwinding of the dis¢ount is re¢ognised as an expense in the period in which it arises. Limited by guarantee The company is limited by guarantee, has no share capital and is recognised as a Charity by HM Revenue and Customs. The liability ol members of the company is limited to £1 per member. Donations and legacies Unrestricted Funds Restricted Total Funds Funds 2023 Donations Fees Milk scheme Fundraising for Children in Need 656,455 1,979 656,455 1,979 370 370 Grants H&SCB Grant Apprenticeship Scheme 6.121 6,121 658,434 6,491 664,925 Unrestricted Funds Restricted Total Funds Funds 2022 Donations Fees Milk scheme Fundraising for Children in Need 619,804 1,838 619,804 1,838 435 435 22
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Donations and legacies (¢ontinuedJ Unrestricted Funds Restricted Total Funds Funds 2022 Grants H&SCB Grant Apprenticeship Scheme 13.224 13,224 500 500 622,142 13,659 635,801 Covid recovery grants Unrestricted Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Early years - Childcare recovery fund 3,660 3,660 30.180 30,180 Investment income Unrestricted Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Bank interest receivable 78 78 39 39 Government grants Unrestrictecl Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Government Grants 2.975 2,975 Expenditure on charitable activities by fund type Unrestricted Funds Restricted Total Funds Funds 2023 Childcare provision Support Costs 667,415 3,000 5,237 672,652 3,000 670,415 5,237 675,652 Unrestricted Funds Restricted Total Funds Funds 2022 Childcare provision Support costs 612,435 3,000 12.275 624,710 3,000 615,435 12,275 627,710 23
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Ststements (¢ontlnuedJ Year ended 31 March 2023 10. Expenditure on charitable actlvlties by activity type Activities undertaken directly Support Total funds costs 2023 Total fund 2022 Childcare provision Governance costs 672,652 672,652 3,000 675,652 624,710 3.000 3,000 672,652 3,000 627,710 11. Net (expenditure)Ilncome Net (expenditure)lincome is stated after chargingl{crediting).' 2023 2022 Depreciation of tangible fixed assets 3,191 3,252 12. Auditors remuneration 2023 2022 Fees payable for the audtt of the financial statements 3.000 3,000 Fees payable to the charity's auditor and its associates for other services.. Other non-audit services 4.752 3,925 13. Staff costs The average head count of employees during the year was 37 (2022: 39). The average number of full-time equivalent employees during the year is analysed as follows: 2023 No. 2022 No. Number of management staff Number of nursery staff 35 37 37 39 No employee received employee benefits of more than £60.000 during the year (2022: Nil). 14. Trustee remuneration and expenses No remuneration or other benefits from employment with the charity were received by any of the trustees.
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (¢ontinued) Year ended 31 March 2023 15. Tangible fixed assets Motor vehicles Equipment Total Cost At 1 April 2022 Additions 15,300 12,587 2,650 27,887 2,650 At 31 March 2023 15,300 15,237 30,537 Depreciation At 1 April 2022 Charge for the year At 31 March 2023 8,845 1,614 8,765 1,577 17,610 3,191 10,459 10,342 20,801 Carrying amount At 31 March 2023 4,841 4,895 9,736 At 31 March 2022 6,455 3,822 10,277 16. Debtors 2023 2022 Trade debtors Prepayments and accrued income Other debtors 2,361 1,448 2,414 439 740 3,809 3,593 17. Creditors: amounts falling due within one year 2023 2022 Accruals and deferred income Social security and other taxe5 Pension creditor Other creditors 42,923 5,783 2,613 600 47.696 3,921 1,983 600 51,919 54,200 18. Creditors: amounts falling due after more than one year 2023 2022 Other creditors 4,100 4,700 25
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 19. Deferred income 2023 2022 Amount deferred in year 14,686 16,846 In the current year the charily has deferred income of £14,686 (2022= £16,846). This relates to invoices raised in the current year for childcare provision post year end. 20. Pensions and other post retirement benefits Defined contribution plans The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £12,466 (2022- £12,252). 21. Analysis of charitable funds Unrestricted funds At 31 March 20 23 At 1 April 2022 Income Expenditure General funds 38,958 662,172 (670,415) 30,713 At 31 March 20 22 At 1 April 2021 Income Expenditure General funds {945) 855,336 (615,435) 38,956 Restricted funds At 31 March 20 23 At 1 April 2022 Income Expenditure Restricted Fund - Happy Days Community Childcare 1,384 6,491 (5,237) 2,638 At 31 March 20 22 At 1 April 2021 Income Expenditure Restricted Fund - Happy Days Community Childcare 13,659 (12,275) 1,384 26
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (contlnuedj Year ended 31 March 2023 22. Analysis of net assets between funds Unrestricled Funds Restricted Total Funds Funds 2023 Tangible fixed assets Current assets Creditors less than 1 year Creditors greater than 1 year Net assets 7,098 79,634 (51,919} (4,100) 30,713 2,638 9,736 79,634 151,919) 14,100) 33,351 2,638 Unrestricted Funds Restricted Total Funds Funds 2022 Tangible fixed assets Current assets Creditors less than 1 year Creditors greater than 1 year Net assets 8,893 88,963 154,200) (4,700) 38,956 1,384 10,277 88,963 154,200) {4,700} 40,340 1,384 23. Limitation of auditor's liability The company has entered into a liability limitation agreement with its auditor. Aubrey Campbell and Company, on the following basis.. (a) the maximum aggregate amount of the auditorfs liability to the company shall not exceed the sum of five times the fees payable lexGluding expenses and value added lax) under the engagement letter agreed for the financial period, or £30,000, whichever is the lesser amount. (b) the agreement was passed by a resolution of the company's trustees on 1 st November 2023. 24. Financial instruments Where reduced disclosures are applied, disclosures from the Companies Act 2006 still need to be made regarding the fair value of the instruments in each category and the changes in value recognised in profit and loss. Disclosures of the significant assumptions underlying the valuation models and techniques used, and extent and nature of derivative instruments are also required. 25. Analysis of changes in net debt At At 1 Apr 2022 Cash flows 31 Mar 2023 Cash at bank and in hand 85,370 {9,545) 75,825 26. Related parties During the year, Happy Days Community Childcare Centre paid £38,400 (2022-. £38,400) to the Church of God at Ballymoney. This was by way of a long established Service Level Agreement. At the year end, Happy Days Community Childcare Centre owed the Church of God at Ballymoney £4,700 (2022.. £5,300). 27