COMPANY REGISTRATION NUMBER: N1603898 CHARITY REGISTRATION NUMBER: 105710 Happy Days Community Childcare Centre Company Limited by Guarantee Financial Statements 31 March 2024 AUBREY CAMPBELL & COMPANY Chartered Accountants & statutory auditor 631 Lisburn Road Belfast BT9 7GT
Happy Days Community Childcare Centre Company Limited by Guarantee ststement of Financial Activities (including income and expenditure account) Year ended 31 March 2024 2024 Restricted funds Total funds Total funds 2023 Unrestricted funds Nots Income and endowments Donations and legacies Covid Recovery Grants Investment income 685,271 3,077 664,925 3,660 78 411 411 Total income 685,682 3.077 688.759 668,663 Expenditure Expenditure on charitable activities Total expenditure 731.385 3.823 735,208 675,652 731.385 3.823 735,208 675,652 Net expendlture and net movement in funds (45,703) (746) {46,449) (6,989) Reconclllatlon of funds Total funds brought forward Total funds carried forward 30.713 2,638 33,351 40,340 (14,990) 1.892 113,098) 33,351 The statement of financial activrties includes all gains and losses recognised in the year. Ail income and expendrture derive from continuing activities. The notss on pages 17 to 28 fomi part of ttwse financial slatements. 14-
Happy Days Community Childcare Centre Company Limited by Guarantee Statement of Financial Position 31 March 2024 2024 2023 Nole Fixed assets Tangible fixed assets 14 7,823 9,736 Currant assets Debtors Cash at bank and in hand 15 2,693 34,007 3,809 75,825 36,700 79,634 Creditors: amounts falling due within one year Net current liabilltles 16 57,621 51,919 (20,921) (13,098) 27,715 Total assets less current liabilities 37,451 Creditors: amounts falling due after more than one year 17 4,100 Net liabilities (13,098) 33,351 Funds of the charlty Restricted funds Unrestricted funds 1,892 (14,990) (13,098) 2,638 30,713 Total charlty funds 20 33,351 These financial statements were approved by the board of trustees and authorised for issue on 16 December 2024, and are signed on behalf of the board by.. Pastor J Payne Trustee Mrs H Kyle Trustee The notes on pages 17 to 28 form part of these flnancial statements. 15-
Happy Days Community Childcare Centre Company Limited by Guarantee Statement of Cash Flows Year ended 31 March 2024 2024 2023 Cash flows from operating activities Net expenditure (46,449) (6,989) Adjustments for Depreciation of tangible fixed assets Other interest receivable and similar income Accrued expenses Covid recovery grants 2,915 (411) 4,244 3,191 (78) 88 (3,660) Changes in.. Trade and other debtors Trade and other creditors 1,074 (2,600) (41,227) (304) (2,881) (10,633) Cash generated from operations Interest received 411 78 Net cash used in operating activities 140,816) {10,555) Cash flows from investing activities Purchase of tangible assets Net cash used in investing activrties 11,002) (1,0021 (2,650) {2,650) Cash flows from financing actlvlties Covid recovery Grants Net cash from financing activities 3,660 3,660 Net decrease in cash and cash equivalents Cash and cash equivalents at beglnning of year Cash and cash equivalents at end of year 141,818) 75,825 (9,545) 85,370 34,007 75,825 The notss on pages 17 to 28 fomi part of these financial statements. 16-
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Flnancial Ststements Year ended 31 March 2024 General Information The charity is a public benefit entity and a private company limited by guarantee, registered in N Ireland and a registered charty in Northem Ireland. The address of the registered office is 14 Garryduff Road, Ballymoney. BT53 7AF. Statement of compllance 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 wrth the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (Charities SORP IFRS 102)) and the Companies Act 2006. Accounting policies Basis of preparatlon The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities 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. 17-
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (ntInued) Year ended 31 March 2024 Accounting policles (¢ontinuedJ Going concem In discussing the going concem ststus of the company in the short to medium term, the Trustees are satisfied 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. Across the sector. however, childcare is experiencing a crisis, fueled in the main by continued annual increases in National Living and National Minimum Wage rates. The Trustees acknowledge the inevitable effect Ihe resultant increase in overall costs has had in recent years, and conduct an annual review of fees to introduce increases accordingly. These increases have invariably had a detrimental impact on numbers at the facility, as more and more parents rely on family members to provide at least 'some' childcare to bridge the gap thereby bypass the fee increase as far as possible. The Trustees acknowledge the impact of the financial results to 31 March 2024 on the overall financial position of the facility and acknowledge that a material uncertainty with regard to the going concern status of Happy Days exists. They are cognisant of their responsibility to react swiftly and decisively to safeguard all stakeholders. Accordingly, the Trustees have decided to perforn a comprehensive 'root and branch, evaluation of the current service provision at Happy Days, and of the manner in which these seNices are organised and delivered. The process will aim to identify potential weaknesses in the current business model, with recommendations made where changes are required. The evaluation will run alongside a cost benefit analysis to ensure that efficiencies and potential tangible impfovements and opportunities are harnessed and acted upon appropriately. Specifically, for instance, with regard to the Playgroup, Happy Days has continued to lobby the Education Authority to have this area of the business included in the Pre School-Education Programme, which provides funded places. So far, these efforts have nol succeeded decrease in the birth rate suggests that capacity amongst existing funded providers is adequate. However, Early Learning and Childcare measures have recently been introduced in the area, one of which sees funded provision extending to to 22.5 hours per week - this this may create a need for additional provision. Dependent on the success of these lobbying efforts, the Trustees will consider whether it is prudent to continue self-funding the Playgroup in the interim. Generally. the Trustees are aware of the need to seek professional guidance to assist in an assessment of the overall structure and viability of Happy Days in a timely manner should this become necessary. The Trustees are most grateful to have the ongoing support of Ballymoney Church of God, who continue to appreciate the immense contribution thal Happy Days makes on a daily basis within our communty. In summary. the Trustees are committed to business transformation in order to secure the future sustainability of Happy Days. They are mindful, however, that should income fall or expenditure increase peNasively. the going concern basis of preparation may become invalid. The financial statements have been prepared on a going concem basis, the validity of which depends on the operational success of the charity and ongoing support from the third parties alluded to above. 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. The financial stalements do not include any adjustments that would result from un-maintainable losses or the withdrawal of this support. In such circumstances, the going concem basis of preparation may become invalid, and adjustments would have to be made to reduce the value of assets to their recoverable amount lo 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 f¢onUnued) Year ended 31 March 2024 Accounting policies (contlnuedj Judgements and key sources of estimation uncertainty 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 thal are believed to be reasonable under the circumstances. Fund accountlng 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 eamiarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the tems of an appeal, and fall into one of two sub<lasses- 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 recognised when there is evidence of entitlement to 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 al the fair value of the goods unless this is impractical to measure reliably. in which case the value is derived from Ihe cost lo the donor or the estimated resale value. Donated facilities and seNices 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 classrfied as unrestricted funds unless there is a contractual 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 Statements (contlftued) Year ended 31 March 2024 Accounting policles (continu Resources expended Expendbture is recognised on an accruals basis as a liabilty is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activf(ies to which it relates.. expenditure on raising funds includes the costs of all fundraising actNities, events, non-charitable trading activities, and the sale of donated goods. expenditure on Char[tab activities includes all costs incurred by a charty in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governan of the charty 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 categones reflecting the use of the resource. Direct costs attribL5table to a single activty are allocated directly to that actwty. Shared costs are apportioned between the activrties they contribute to on a reasonable. justifiable and consistent basis. Tangible assets Tangible assets are inrtialty 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 impaim)ent losses. An increase in the carying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless rt reverses a charge for impaimient that has previously been recognised as expenditure within the ststement 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 pviouS revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial adivities. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic lrfe of that asset as foll¢Y4VS: Motor Vehicles Equipment 25Dkn reducing balance 200fi straight line Impaimient of fixed assets A review for indicators of impaim)ent is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. ere the carrying value exceeds the recoverable amount. the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (¢ontlnuedJ Year ended 31 March 2024 Accounting pollcles (continued) Impairment of fixed assets (continued) For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is 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 generates 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, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units. Short term employee benefits The company provides short temi benefrts 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 party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount re1vable or payable including any related transaction 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 othenwise 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 subsequentty 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 impainnent, an impaiment loss is recognised undef 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 (¢onthued) Year ended 31 March 2024 Accounting policies (ujntlnued) Financlal Instruments (continu For all equty instruments regardless of signtficance, and other financial assets that are individually significant. these are assessed individually for impaiment. Other financial assets are either assessed individually or grouped on the basis of similar credrt risk characteristics. Any reversals of impaimient are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carying amount would have been had the impaiment not previously been recognised. Defined contributlon 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 reduCtn in future payments or a cash refund. Tren 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 liabilty is measured on discounted present value basis. The unwinding of the discount is recognised 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 Charty by HM Revenue and Customs. The liabilty of members of the company is limrted to £1 per member. Donations and legacies Unrestricted Funds Restricted Total Funds Funds 2024 Donations Fees Milk scheme Fundraising for Macmillan Cancer Support Fundraising for Children in Need Fundraising for Sandefford School Fundraising for Nl Children's Hospice Commissions from Tempest Photcgraphy 683,369 1.734 683,369 1,734 398 226 135 158 168 398 226 135 158 168 Grants H&SCB Grant 2.160 2,160 685,271 3,077 688,348
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (¢ontlnuerfJ Year ended 31 March 2024 Donations and legacles (Continued) Unrestricted Funds Restricted Total Funds Funds 2023 Donations Fees Milk scheme Fundraising for Macmillan Cancer Support Fundraising for Children in Need Fundraising for Sandelford School Fundraising for Nl Children's Hospice Commissions from Tempest Photography 656,455 1,979 656.455 1,979 370 370 Grants H&SCB Grant 6,121 6,121 658,434 6,491 684,925 Covid recovery grants Unrestricted Totsl Funds Unrestricted Total Funds Funds 2024 Funds 2023 Early years - Childcare recovery fund 3,660 3,660 Investment Income Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Bank interest receivable 411 411 78 78 Expenditure on charitable activities by fund type Unrestricted Funds Restricted Total Funds Funds 2024 Childcare provision Support costs 728.385 3,000 3,823 732,208 3,000 731,385 3,823 735,208 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 -23-
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Ststements (contlnued) Year ended 31 March 2024 Expenditure on charltable activities by actlvity type Activities undertaken directly Support costs Total funds 2024 Total fund 2023 Childcare provision Govemance costs 732,208 732,208 3,000 672,652 3,000 3,000 732,208 3,000 735,208 675,652 10. Net expenditure Net expenditure is stated after chargingl(crediting)'. 2024 2023 Depreciation of tangible fixed assets 2,915 3,191 11. Auditors remuneration 2024 2023 Fees payable for the audit 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 4,030 4,752 12. Staff costs The total staff costs and employee benefits for the reporting period are analysed as follows.. 2024 2023 Wages and salaries Employer contributions to pension plans 600,657 15,924 545,330 12,466 616,581 557,796 The average head count of employees during the year was 37 (2023: 37). The average number of full-time equivalent employees during the year is analysed as follows: 2024 2023 Number of management staff Number of nursery staff 35 35 37 37 No employee received employee benefits of more than £60,000 during the year (2023.. Nil). -24-
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 13. Trustee remuneration and expenses No remuneration or other benefits from employment with the charity were received by any of the trustees. 14. Tangible flxed assets Motor vehicles Equipment Total Cost At 1 April 2023 Additions 15,300 15,237 1,002 30,537 1,002 At 31 March 2024 15,300 16,239 31,539 Depreciation Al 1 April 2023 Charge for the year At 31 March 2024 10,459 1,210 10.342 1,705 20,801 2,915 11,669 12.047 23,716 Carrying amount At 31 March 2024 3.631 4,192 7.823 At 31 March 2023 4,841 4,895 9,736 15. Debtors 2024 2023 Trade debtors Prepayments and accrued income 1,820 873 2,361 1,448 2,693 3,809 16. Credltors: amounts falling due wlthln one year 2024 2023 Accruals and deferred income Social security and other taxes Pension creditor Other creditors 48,218 6,382 3,021 42,923 5,783 2,613 600 57,621 51,919 17. Credltors: amounts falling due after more than one year 2024 2023 Other creditors 4,100 -25-
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Ststements (¢¢>ntlnuod) Year ended 31 March 2024 18. Deferred income 2024 2023 Amount deferred in year 15,779 14,686 In the current year the charity has deferred income of £15,779(2023.' £14,686). This relates to invoices raised in the current year for childcare provision post year end. 19. Pensions and other post retir8ment benefits Defined contribution plans The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £15.924 (2023: £12,466). 20. Analysis of charltsble funds Unrestricted funds At 31 March 202 At 1 April 2023 Income Expenditure General funds 30,713 685,682 (731,385) (14,990) At 31 March 202 At 1 April 2022 Income Expenditure General funds 38,956 662,172 (670,415) 30,713 Restricted funds At 31 March 202 At 1 April 2023 Income Expenditure Restricted Fund - Happy Days Community Childcare 2,638 3,077 (3,8231 1,892 At 31 March 202 At 1 April 2022 Income Expenditure Restricted Fund - Happy Days Community Childcare 1,384 6,491 (5,237) 2,638 -26-
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Statements {continuedJ Year ended 31 March 2024 21. Analysis of net assets between funds Unrestricted Funds Restricted Total Funds Funds 2024 Tangible fixed assets Current assets Creditors less than 1 year Creditors greater than 1 year Net liabilities 5,931 36,700 {57,621) 1,892 7,823 36,700 (57,621) (14,990) 1,892 (13,098) Unrestricted Funds Restricted Total Funds Funds 2023 Tangible fixed assels Current assets Creditors less than 1 year Creditors greater than 1 year Net liabilities 7,098 79,634 (51,919) (4,100) 30,713 2,638 9.736 79.634 {51,919) (4,100) 33,351 2,638 22. Limltatlon of auditorfs liability The company has entered into a liability limitation agreement with its auditor, Aubrey Campbell and Company, on the following basis.. (al the maximum aggregate amount of the auditorfs liability to the company shall not exceed the sum of five times the fees payable (excluding expenses and value added tax) under the engagement letter agreed for the financial period, or £30,000. whichever is the lesser amounl. (b) the agreement was passed by a resolution of the company's trustees on 2nd December 2024. 23. Financlal 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. 24. Analysis of changes in net debt At At 1 Apr 2023 Cash flows 31 Mar 2024 Cash at bank and in hand 75.825 (41,818) 34,007 -27-
Happy Days Community Childcare Centre Company Limited by Guarantee Notes to the Financial Ststements (continuedj Year ended 31 March 2024 25. Related parties During the year. Happy Days Community Childcare Centre paid £37,700 (2023.. £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 £nil {2023'. £4,700). This related to a car loan that the charity loaned from the church that was written off at the year end. The amount written off is £4,150. -28-