Happy Days Community Childcare Centre Company Limited by Guarantee Independent Auditor's Report to the Members of Happy Days Community Childcare Centre Year ended 31 March 2023 Opinion We have audited the financial statements of Happy Days Community Childcare Centre {the 'charity') for the year ended 31 March 2023 whicm comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act (Northern Ireland) 2008. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS {UK)) and applicable law. Our responsibilities under those standards are further described in the auditorfs responsibilities for the audit of 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 slatemenls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Happy Days Community Childcare Centre Company Limited by Guarantee Independent Auditor's Report to the Members of Happy Days Community Childcare Centre (continued) Year ended 31 March 2023 Material uncertainty related to going concern We draw attention to note 3 in the financial statements, which indicates that without qualifying our opinion, we have considered the adequacy of the disclosures made in the financial statements concerning the Company's ability to continue to operate as a going cOn￿rn, and would draw your attention to the information below and in Note 3 to the Financial Statements. The Trustees are satisfied that demand for the business, services has not waned, and that they have successfully maintained market share. They also reiterated the notion Ihat the business will have the full backing of the Church of God with which the business has inextricable links in terms of its history, geography and personnel. They are, however, not ignoring that the weakening of the financial performance in the current year may mean that the going concern basis of preparation may become invalid. Accordingly, the financial statements have been prepared on a going concern basis, the validity of which depends upon continued levels of community support for the Centre's services, and support from the Church of God should the need arise. The financial statements do not include any adjustments that would result from catastrophic financial performance, or the withdrawal of this support.. As stated in note 3 these events or conditions, along with the other matters as set forth in note 3 indicate that a material uncertainty exists that may cast significant doubt on the charity's ability to continue as a going concern. Our opinion is not modified in respect of this matter. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the infomiation included in the annual report. other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. 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. In Connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent malerial misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit: the information given in the trustees, report for the financial year for which the fsnancial statements are prepared is consistent with the financial statements., and the trustees, report has been prepared in accordance with applirAble legal requirements. 10 Happy Days Community Childcare Centre Company Limited by Guarantee Independent Auditor's Report to the Members of Happy Days Community Childcare Centre (continuedj Year ended 31 March 2023 Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation to which Ihe Companies Act 2006 and the Charities Act (Northern Ireland) 2008 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 trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees (who are also the directors for the purposes of company law} are responsible for the preparation of Ihe financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the truslees either intend to liquidate the charity or to cease operations. or have no realistic alternative but to do so. 11 Happy Days Community Childcare Centre Company Limited by Guarantee Independent Auditor's Report to the Members of Happy Days Community Childcare Centre (conllnued) Year ended 31 March 2023 Auditor's responsibilities forthe audit of the f5nancial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, 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. Irregularities. including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. The exient to which the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. -the en9agement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations-, -we identified the laws and regulations applicable to the company through discussions with tnjstees and other management., -we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence., and -identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misststement, including obtaining an understanding of how fraud might occur. by: -making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud- and onsidering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. -To address the risk of fraud through management bias and override of controls, we.. -perfomied analytical procedures to identify any unusual or unexpected relationships- -tested journal entries to identify unusual transactions., and -assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and reguSations, we designed procedures which included, but were not limited to.. 12 Happy Days Community Childcare Centre Company Limited by Guarantee Independent Auditor's Report to the Members of Happy Days Community Childcare Centre (continued) Year ended 31 March 2023 -agreeing financial statement disclosures to underlying supporting documentation., -reading the minutes of meetings of those charged with governance,. and -enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also.. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perfomi audit procedures responsive to those risks. and oblain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related (Jisclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concern basis of accounting and. based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern. Evaluate the overall presentation, strudure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 13 Happy Days Community Childcare Centre Company Limited by Guarantee Independent Auditor's Report to the Members of Happy Days Community Childcare Centre (contlnued) Year ended 31 March 2023 We communicate with those charged with governance regarding. among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made solely to the charity's members. as a body, in accordance wilh section 65 of the Charities Act (Northern Ireland) 2008. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest exient permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have fomied. Mr John gee (Senior Statutory Auditor) For and on behalf of Aubrey Campbell & Company Chartered Accountants & statutory auditor 631 Lisburn Road Belfast BT9 7GT 28 November 2023 14