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← Early Years - the organisation for young children

2023-03-31-annual-return

Charity registration number NIC105832

Company registration number NI023257 (Northern Ireland)

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees MT McDonagh, Chair A Sobieraj, Treasurer N Fulton J Barkley R Park S McCambley (Appointed 25 November 2022) Secretary/Chief executive officer P M Walmsley Charity number NIC105832 Company number NI023257 Principal address 6c Wildflower Way Apollo Road Belfast BT12 6TA Registered office 6c Wildflower Way Apollo Road Belfast BT12 6TA Auditor GMcG BELFAST Chartered Accountants & Statutory Auditor Alfred House 19 Alfred Street Belfast BT2 8EQ Bankers Danske Bank Benmore House 353 Lisburn Road Belfast BT9 7EP Solicitors Elliott Duffy Garrett 40 Linenhall Street Belfast BT2 8BA

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

CONTENTS

Page
Trustees' report 1 - 8
Independent auditor's report 9 - 14
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Notes to the financial statements 18 - 36

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report and financial statements for the year ended 31 March 2023.

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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

Objectives and activities

Formed in 1965, Early Years – the organisation for young children (hereafter, called ‘Early Years’ and ‘the Organisation’) works to promote the development of high quality care, education and play facilities for children aged 0-18 years and their families.

It is the largest voluntary organisation, employing 250 staff across Sure Start, Pathway, HSC Regional Contract arrangements, Toybox (which works with Traveller and Roma families), EY core training, membership activities and Peace IV funded activities, working in the early years care and education sector across the breadth of Northern Ireland, and, increasingly, internationally.

Early Years objectives, as outlined in the Organisation’s Articles of Association, are as follows:

The Organisation supports and endorses the United Nations Convention on the Rights of the Child (UNCRC) to which both the UK and Irish governments are signatories. The Organisation will continue to use the Convention and the concluding observations of the Committee on the Rights of the Child as a basis for its work with young children.

In particular the Organisation will work towards implementing the UNCRC’s position on young children known as General Comment Number 7. Periodically the Committee on the Rights of the Child publishes reports (termed General Comments) which detail, for specific circumstances or groups of children, how the Committee wishes to see the Articles of the Convention interpreted and implemented. General Comment Number 7 sets out how the rights enshrined in the Convention must be fully implemented for young children and how, in doing so, governments and civic society can provide a clear framework for young children to realise their rights under the Convention.

The Organisation supports A Shared Future Policy Agenda and will work towards implementation of the policy throughout the Early Years network.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Mission Statement

The Mission of Early Years is to lead and innovate to ensure high quality shared early education and care services that support resilience for young children, their families and communities.

Organisational Vision

Organisational Values

Early Years believes in:

This Vision is driven by the Organisation’s Strategic Plan 2022-2026, with the aims of:

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

In furtherance of its aims, objectives, values and principles, Early Years provides the following services to the early years sector:

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

During the prior year, Early Years developed a new strategic plan for 2022 to 2026 with a strong focus on people and pedagogy. This plan was implemented from April 2022. Over the year, a focus on the broader early childhood education and care workforce was realised.

Key highlights from the year include:

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

For the outgoing year notable achievements include:

Continued consolidation of the Early Years Specialist service to form a regional service focused on mentoring and advice with an emphasis on upskilling of senior service delivery staff to Masters level. The organisation continues to provide a Compassionate Leadership programme aimed at supporting settings to deal with the pressures of re-establishing front line services and supporting children overcome the challenges.

Early Years continue to focus on key evidence-informed, outcomes-focused programmes including the Media Initiative for Children Respecting Difference Programme, Eager and Able to Learn and HighScope and this can be evidenced in the embedding of HighScope within the Toybox project and the tangible improvements for Traveller and Roma families as a result. EY has achieved increased international penetration with continued delivery on a contract signed with partners in China. Early Years continue to play a lead role in the Early Childhood Peace Consortium and the International Network on Peacebuilding with Young Children.

As part of the Organisation’s advocacy role on behalf of the sector, to advocate, mobilise and influence early years’ policy developments that are rights based, evidence informed and appropriately resourced EY continue to advocate for the publication of an Early Learning and Childcare Strategy. We are determined to continue our focus, with commitment, dedication and determination and to better leverage EY membership, parents and public support for key policy objectives which support the rights of young children and deliver outcomes for young children, six key messages have been developed to influence DE strategy. EY continues to increase its online advocacy profile, with significant increases in Facebook and Twitter following.

In communicating and disseminating a robust knowledge transfer strategy, the Organisation continues to deliver the Pathway Fund on behalf of DE, moving an increasing number of recipient organisations to the noted OBA framework monitoring and reporting in the year. In addition, delivery of Peace IV and associated education and sharing outcomes, saw over 2,000 children being reached in year 6 in relation to diversity, respect for difference and sharing.

The ongoing involvement in the 3 year research project with two year olds is showing significant contribution to the objective of further evidence of the impact of the MIFC on improving inclusion and social cohesion outcomes and Early Years was delighted to present findings at a number of key international conferences.

Early Years led a successful advocacy campaign to secure the sustainability of the childcare sector throughout the Covid-19 period. Early Years has prioritised the delivery of safe, sustainable and stable services during a period of great uncertainty and it is notable that the organisation has successfully delivered funding support across the full range of registered services.

Conclusion

Early Years will continue and increase its role in advocacy. The implementation, in partnership with the Department of Education, of the Pathway Fund by Early Years, as the organisation selected to deliver the fund following a competitive tender process, continues to be a real success. Early Years continued to build expertise in fund management through the delivery of the Childcare Recovery Support Fund.

Children remain at the centre of Early Years, and it is their needs and interests that guide all staff members in both long term strategic and every day activity. With the focus on children underpinning everything the organisation does, we are sure that Early Years will continue to innovate and grow.

The Board would wish to commend the continued commitment, dedication and sheer energy and enthusiasm of Early Years staff and the membership. It is these personal attributes of all involved that make the work of Early Years so successful, everyone should be very proud of the impact they are making day to day on the lives of our young children.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for Future Periods

Early Years is looking to the future with two substantial applications to Peace Plus already submitted. These will allow the organisation to build on the successful Sharing from the Start model for shared education through a broader partnership with EA. A second application focuses on the establishment of a shared early childhood centre of excellence at Clogher which will allow Early Years to maximise its evidence based excellence and innovation in a demonstration site with cross-community and cross-border reach.

Early Years continues to consolidate its international reputation on peacebuilding with young children through the International Network on Peacebuilding with Young Children. The network will work on a new publication highlighting successes around te world to be launched at a high profile event in New York.

Early Years continues to focus on consolidating its financial position to enable a clear and independent focus on advocacy for young children, families and those who work with them. It continues to focus on grassroots advocacy with strong community connections through its local Branch network, Daycare Forum and PSEP Forum.

Financial review

The Charity’s principal sources of funding are as disclosed in note 4 of the financial statements and its expenditure is detailed in notes 8 and 9 of the financial statements, have supported the Charity’s key objectives as highlighted on pages 1-3.

The results for the year are set out in detail on pages 15 to 36. The Charity had net outgoing resources for the year of £37,554. In 2022, the Charity had net incoming resources of £292,487.

At 31 March 2023, the total funds of the charity amounted to £764,290 (2022 - £801,844) comprising restricted funds of £39,403 and unrestricted funds of £724,887.

Unrestricted funds are considered essential to provide sufficient funds to cover any unforeseen costs which may arise and fulfil the legal obligations of the charity in the event that current levels of income are not maintained. Note 23 of the financial statements provides a breakdown of net assets between restricted and unrestricted funds. The breakdown shows that unrestricted funds include fixed assets with a net book value of £782,153, net current assets of £147,292 and long term liabilities of £204,559.

The unrestricted funds position is a result of several challenging years for the organisation. The challenges were caused by several factors over a number of years; the results of the Newry Early Years Centre, an overspend on Atlantic Philanthropies, the loss of the DE Early Years Fund, continued lack of government support for High Scope activities in Republic of Ireland and the slow process of the opening of funding of European programmes all contributed to putting pressure on reserves in the period from 2015 onwards. The unrestricted funds position improved during the years ended 31 March 2021 and 31 March 2022, and has slightly worsened again in the year-ended 31 March 2023 reflecting the challenging economic environment and high inflation during the year ended 31 March 2023.

The Board and the Senior Management Team continue to be committed to an agreed future strategy and building up the level of reserves in the short to medium term is a key priority. During the year ended 31 March 2023 Early Years continued its successful management of the Pathway Fund, a major Peace IV project and completed delivery of the Childcare Recovery Support Fund.

The Charity continues to develop its plans for a new HQ and childcare centre at Clogher. In 2023/24 the organisation has submitted applications for multi-year funding under PEACEPLUS, which, if successful, will allow staff to continue to innovate on programme delivery and new initiatives.

Although the unrestricted reserves position at 31 March 2023 remains stable, the financial position of the organisation requires further strengthening, with a need to continue to focus on unrestricted reserves for future reinvestment in sustained growth. Financial projections have been prepared by management of the charitable company for the period to 31 December 2024. The projections indicate that the organisation should have sufficient funds to continue to operate. Consequently, these financial statements have been prepared on a going concern basis. Further information regarding going concern is disclosed in note 1.2 of the financial statements.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Reserves Policy

The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (as amended for accounting periods commencing from 1 January 2019) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) defines unrestricted reserves as funds which are expendable at the Board’s discretion in furtherance of any of the charity's objects but which are not yet spent or committed. Consistent with responsible financial management, the Board balances the needs of their current and future beneficiaries by identifying the likely challenges and opportunities the Organisation faces in the medium to long term. A reserves policy and adherence provide confidence that the Organisation can meet its operational requirements. A full review of the Organisation’s reserves policy was carried out in August 2012 and again in 2016 and 2023. As recommended by the Charities Commission for England and Wales, the reserves policy was agreed following an analysis of the following four factors:

On the basis of this review, the Organisation has defined the following reserves in order to meet both the current and imminent future needs of the Organisation:

General Funds - Tactical: This reflects the short-term tactical reserves required by the Organisation. The balance at 31 March 2023 was £724,887 (2022 - £747,374), which includes fixed assets with a net book value of £782,153. The aim of the General Reserve is to hold 8 weeks' worth of unrestricted expenditure to cover short term setbacks or cash flow difficulties. The decrease in unrestricted reserves during the year to 31 March 2023 reflects the challenging economic conditions during the year. The Board remains committed to achieving the targeted level of General Reserve and continues to monitor levels of unrestricted reserves.

These reserves are detailed in note 23 of the financial statements.

Risk Management

The Senior Management Team continued to implement a risk-based approach during the year. The following actions were completed:

The Corporate Risk Register was regularly reviewed and updated at meetings of the Senior Management Team and the Board to ensure that it supported the delivery of the Organisation’s Balanced Scorecard.

The key risks relevant to the Organisation have been identified within the Corporate Risk Register, and include the following:

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management

Early Years is a company limited by guarantee; it does not have share capital. It is governed by a Memorandum and Articles of Association dated 8 November 1989, which was amended to allow for a name change to its current name on 12 April 2007, and further revised in 2012 and most recently in June 2016. The liability of each member is limited to an amount not exceeding £1.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

MT McDonagh, Chair A Sobieraj, Treasurer E McIvor (Resigned 25 November 2022) A Loughery (Resigned 29 April 2022) N Fulton J Barkley R Park S McCambley (Appointed 25 November 2022)

Trustees are elected for a tenure of three years, with the option of a further three-year tenure, by the members of the organisation attending the Annual General Meeting (AGM) in November. Trustees are nominated by the Board of Trustees. All members are circulated with details of retiring and nominated trustees prior to the AGM and are invited to vote either by proxy or when in attendance at the AGM.

The Board of Trustees administers the charity. The Board meets quarterly and is supported in its governance by a Finance & General Purposes Committee, which meets every six weeks. The Board of Trustees currently consists of six Trustees, including a nominated Chair and Treasurer. During the year, the day to day running of the Organisation was delegated to the Chief Executive Officer, Pauline Walmsley.

All new trustees and Board members receive both induction training and an induction pack comprising a Governance Manual outlining the role and responsibilities of the Board, organisational policies and procedures, and the Strategic Plan and annual Corporate Balanced Scorecard. Training for Board members is provided as required; a skills audit is also undertaken annually to identify current and future training needs of Board members.

Employee involvement

The charity's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the charity continues and that the appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Statement of Tru8te88' responslbllltles The trustees. vtho arè also the directors of Early Years - the organisailon for young people for the purpose of company law, are responsible for preparing the Tiustees, Report and the finantial stslemenls in accordance With applicable law and United Kingdom Accounting Standards (United Kingdom Generally Acc*pl8d Accounting Practice). Company Law requires the trustees to prepare financial slatement5 for each financial year whlch give a Irue and fair view of the slate of affairs of the charity and of th8 incoming resources and application of r8sourc8s, including the income and expenditure. ol the charltable company for that year. In preparing these financial ststements, the Irustees are required to.. - select suilable accounting policies and then apply them consistenlly., - observa the methods and principles in the Charities SORP., make judgements and estimales that are Teasonable and prudent., state whether applicable UK Accounting Standards have b8on followed. subject to any material departures disclosed and explained in the financial slalements, and prepare the financlal statements on the going concern basis unless il is inappropriat8 to presume Ihat the charily will continue in operation. The trustees are responsible for keeplng adequate accounting rècords that dlsclose wlth reasonable accuiacy at any time the financial posilion of the charity and enable them lo ensure that Ihe financial slalements ￿MplY with Ihe Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for laking roasonable steps for the prevention and deteclion of fraud and other irregularilies. Audltor In accordance with Ihe company's articles, a resolution proposlng that GMCG BELFAST be reappolnted as auditof of Ihe company will be put at a General Meeling. Dlsc108ur8 of Infomiatlon to audltor Each of the Trustees has Confirmed Ihat there is no informats'on of which Ihey are aware whiGh is relevant lo the audit. but of which the auditor is unaware. They have furlh8r confimied that they have taken appropriate steps to identlfy such relevanl information and lo establish that the auditor is aware of such informalion. The Trustees, report. including the strategic report. was approved by the Board of Trustees. MT MCDO Director gh, Chalr loral, Trea8ur•r Director Dated..

CHARTERED ACCOUNTANTS EARLY YEARS . THE ORGANISATION FOR YOUNG CHILDREN INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EARLY YEARS- THE ORGANISATION FOR YOUNG CHILDREN Oplnlon We have audit8d the financlal statements of Early Years - Ihe organisatlon for young children (the 'charity') for the year ended 31 March 2023 which comprise the stalement of fnancial activities. the balance sheet, the statement of cash flows and notes to the financial statements, indudlng significant accounting policies. The financial r8POrting framework that has been applied in their preparation is applicabl8 law and United Kingdom Accounting Standards, including Flnancial Reporting Standard 102 The Financial Reporting Slandard applicable in the UK and Republ￿ ol Ireland (Uniled Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a Irue and lair vlaw of the state of the charltable company's affalrs a5 at 31 March 2023 and of its incoming resources and application of resources. including ils incorne and expenditure. for the year then ended., have been properly prepared in accordance wrth United Kingdom Generally Accepted Accounting Practir; and have been prepared in accordance with the requirements of the Companies Acl 2006. Bas18 for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) IISAS (UK>) and applicable law. Our responsibllities under those slandards are further descnbed in the Audiiofs rèsponsibilities for Ihe audit ol the financial slalemenls 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 fulfillad our other ethical responsibilities in accordance with these requirements. We believe that the audit evidenc6 we have obtained is sufficient and appropriate lo provide a basis for our opinion. Matérlal uncertalnlty rolated to golng ¢on¢•rn We draw attention to note 1.2 in the financial statements. which Indicates Ihal the valldily of going concern depends upon forecasts being achieved and no significant unforeseen cosls arising. As stated in note 1.2, these events or conditions, along with the other matters as set forth in note 1.2 indicate that a material uncertainty exists that may cast slgnificant doubt on the charitable company's abtlity to continue as a going concern. Our opinion Is not modifi'ed in respect of this matter. Alfred House 19 Alfred Street BELFAST BT2 8EQ DX3910 NR Belfa9t 50 Cenlury House 40 Crescent Biisiness Park LISIIURN BT98 2GN 17 M&ndcYAlle Street PORTADOWN aigavon BI'62 3PB Td: +44 (0)x8 9031 IA13 Fax: +44 (0)z8 9031 0777 Tel: 444 (0128 9260 T355 Fax: +44 (0)28 9260 1656 Tel.. +44 (0)28 3833 2801 F&li: +44 (0}28 3835 0293 1lJldlKsablldiDx￿￿t0rG￿¢G Gmp tamit&tIlryN￿.NI05I￿1l4ofD1IUloThJVlttth1eIt re￿￿¢{1¢￿ Re￿#¢11[*￿Adllcta￿d1I￿￿kbthelnst(bjleofc￿lrterId￿l¢oU￿14ntslfjJrdaNd

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN Other Inforfflatlon The other infom)atlon comprises the information included In the annual report other than the financial statements and our auditorfs report th8reon. The Trustees are responsible for the other information contained within the annual report. Our oplnion on the financial statements does not cover th8 other infoTmats'on and, except to the exlent otherwise explicitly staled in our report. we do not express any form of assurance conclusion thereon Our responsibility is to read tha other informab'on and, hn dolng so. consider whether the other information is materially inconslstent wilh Ihe financial statements or our knowledge obtained in the course of the audil, or olhepNise appears to be mat8rially misstated. If we identify such material inconsistencies or appar8nt material misstatemenls, we are required to determine whether this glves rise to a material misstatement in the financial slataments themselves. If. based on the work we have performed, we conclude that there is a material misstatement of Ihis other Information, y￿ are requlred to report that fact. have nothing io report in this regard. Oplnlons on oth8r matter5 prescrlbed by the Companles Act 2006 In our opinion. based on the work undertaken In the course of our audit.. the information given In the Trustees, report for the financial year for whith the financial statements are prepared, which includes the directors. report and the strategic report prapared for the purposes of company law, is consistent wrth the flnanclal slatèments, and the strategK report and the directors. report Induded within the Trustees, report have been preparèd in accordance with applicable legal requwements. Matter8 on whlch we aro requlred lo report by ex¢tptlon In the light of the kno￿rfe￿ge and underslanth'ng of the charity and its environment obtained in the course of the audit, we have not identified matenal misstslements in the strategic report or the directors. report included within the Truslees. report We hav• nothing 10 raport In respect of Ihe following matters in relation to whlch th8 Companies Act 2006 réquires us to report lo you if. in our oplnion. adequate accountlng rècords have not been kept. or returns adequate for our audit have not been received from branches nol visited by us,. or the financial statements are not In agreement with the accounting records and retums: or certain disclosures of trusteas. ramuneration specified by law are not made., or we have not received all the informatlon and explanattons we require for our audit. 10-

EARLY YEARS- THE ORGANISATION FOR YOUNG CHILDREN INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN R•spon51bllltles of Trustees As explained more fully in the slatement of Trustéès. responsIb￿tIes. the Trustees. who are also the directors of the charity for ihe purpose of company law, 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 Trust8es determine is necessary to enable the preparation of fjnancial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the Trustees are responsib18 lor assessing the charity's ability to continue as a going concern. disclosing, as applicable. matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquldate the charitable company or to cease operations. or havè no realistic alternats've but to do so. Audltor's responslbllltles for th• audlt of the flnanclal gtatèmants Our objectives are lo obtain reasonable assurance about whether the financial statements as a Who￿ are free from material misslatemenl, whether due lo fraud or error. and to issue an audilor's report that includes our opinion. Reasonable assurance Is a high level of assurance but 18 not a guarantee that an audit conducted In accordance with ISAS (UK) will always detect a material misstatement when il exists. Misstatements can arise from fraud or error and a￿ considered material If, individually or In the aggregate. they could reasonably be expected to Influence tha economic decision5 of users taken on the basis of these financial statements. The exlanl to which our procedures are capable of detecting irregularities. induding fraud, is detailed below 11

EARLY YEARS- THE ORGANISATION FOR YOUNG CHILDREN INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EARLY YEARS- THE ORGANISATION FOR YOUNG CHILDREN Extent to whlch the audlt was conslder8d capable of det8Ctlng Irregularflles. Includlng fraud We identify and assess the risks of matenal mi5Staternent of the financial statements. whether due to fraud or error. and then d8sign and perform audit procedures responsiv8 to those risks. Including obtaining audit eviden￿ thal is sufficient and appropriate to provide a basls for our opinion. In Identifying and assessing potential risks of material mlsstatement in respect of Irregularitles, including fraud and non-compliances with laws and regulations. we considered the following: The nature of the Industy and sector, wntrol environment and business performance, inGluding the company's remuneration policies for directors. bonus lev&ls and performance targets, if any,. Results of our enquirios of management about their own identif￿lI10n and a$s6ssmant of Ihe risks ol irregularities. Any matters we identified having obtalned and revlewed Ihe company's documentation of their policies and procedures relating to.. Identifying, evaluating and Complying with laws and regulats'ons and whelher they were aware of any Instance of non-compliance., Detecting and responding to the risks of fraud and whethér they have knowledge of any actual, suspected or alleged fraud., and The intemal Gonlrols establlshed to mitigate risks of fraud or non-compliance wlth laws and regulations., The matters discussed among the audit engagement team regarding how and where fraud might occur In the financial slat8m8nts and potential indicators of fraud. Ag a result of these proceduras wa considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue r8cognrtion. In common with al audits undar ISAS (UK). we are also required to perform specific procedures to respond to the risk of management oveTride. We also obtained an understanding of Ihe legal and regulatory frameworks that the company operates in. focuslng on provisions of those laws and r8gulatsons that had a direct effect on the detarminalion of material amounts and disclosures in Ihe financial statements The key lav￿ and regulations we considered in this context included th8 Companies Acl 2006, and local lax legislation. In addition, we considered provisions of other laws and regulations thal do not have a direct effect on the financial slatemenls but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty 12-

EARLY YEARS . THE ORGANISATION FOR YOUNG CHILDREN INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EARLY YEARS-THE ORGANISATION FOR YOUNG CHILDREN Audlt response to rlsks Identlfled Our procedures to respond to the risk3 identified included the following- Reviewing the financial statement disclosures and testing to supporting documentalion 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 procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud., Reading minutes of meetings of those charged with governance and reviewing correspondence wilh tax authorities: and In addressing the risk of fraud through management override of controls. testing the appropriateness of journal entries and other adiuslmenls, assessing whether the judgemen18 made in making accounting estimates are indicative of a potential bias, and evaluating the business rationale of any significant transactions Ihat are unusual or outside Ihe nomial course of buslness. INe also communicated relevant identified laws and regulations and potential fraud risks lo all engagement team members and remained alert lo any indications of fraud or non-compliance with laws and regulations throughout the audit. Owing to the inherent Ilmltations of an audit, there 1$ an unavoidable risk that we may not have delected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standard$. In addition. a5 Wlth any audit, there remains a hlgher risk of non-deteclion of irregularities. as they may involve collusion, forgery. intentional omissions. misrepresentations. or the override of internal controls. We are not rasponsible for preventing non-¢ompliance and cannot be expected lo detect non- compliance with all laws and regulations A further descriplion of our responsibilities is available on the Financial Reporting Council's websile at.. https'.11 www.frc.org uklauditorsrespon&bilities. This description forms part of our auditor's report. 13-

EARLY YEARS . THE ORGANISATION FOR YOUNG CHILDREN INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN Use of our roport This report is made solely to the charitab18 company's m8mbers, as a body. In accordance wlth Chapter 3 of Part 16 of the CompaniesAct 2006. Our audit work has been undertaken so that we might state to the charitalle company's members those matters we are required to state to them in an audlto¢s report and for no other purpose. To the fullest extent permltted 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 wolk. for this report. or for the opinions we have formèd. Mr Nlgel Moo foy and on beha CA (Senlor Statutory Audltor) ol GM¢G BELFAST Chartered Accountants Statutory Audltor Chartered Accountants & Statutory Auditor Alfred House 19 Alfred Street Belfast BT2 8EQ 14.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
funds
2023
Notes
£
Income from:
Donations and
legacies
3
2,100
Charitable activities
4
1,067,077
Other trading
activities
5
997,471
Investments
6
271
Total income
2,066,919
Expenditure on:
Raising funds
7
10,211
Charitable activities
8
2,102,131
Total expenditure
2,112,342
Net (outgoing)/incoming
resources before
transfers
(45,423)
Gross transfers
between funds
22,936
Net (expenditure)/income
for the year/
Net movement in funds
(22,487)
Fund balances at 1 April
2022
747,374
Fund balances at 31
March 2023
724,887		 Restricted
funds
2023
£
112,730
8,786,750
-
-
8,899,480
39
8,891,572
8,891,611
7,869
(22,936)
(15,067)
54,470
39,403		 Total
Unrestricted
funds
2023
2022
£
£
114,830
30,151
9,853,827
1,483,653
997,471
878,913
271
468
10,966,399
2,393,185
10,250
13,466
10,993,703
1,853,592
11,003,953
1,867,058
(37,554)
526,127
-
36,766
(37,554)
562,893
801,844
184,481
764,290
747,374		 Restricted
funds
2022
£
79,474
8,858,081
-
-
8,937,555
608
9,170,587
9,171,195
(233,640)
(36,766)
(270,406)
324,876
54,470		 Total
2022
£
109,625
10,341,734
878,913
468
11,330,740
14,074
11,024,179
11,038,253
292,487
-
292,487
509,357
801,844

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.

EARLY YEARS- THE ORGANISATION FOR YOUNG CHILDREN BALANCE SHEET AS Af 31 MARCH 2023 2023 2022 Not•s FSxed a88et8 Tangib18 assets 13 782,153 821,513 Currnnt assets Stocks Debtors Cash at bank and in hand 14 28,742 680,346 1.504,887 31,063 713,494 3.083,412 2.213,955 3,827,969 Credltors; amounts falling due wlthln one yoar 16 {2,029,215) (3,561,435) Net current assets 184,740 266,534 Total a880ls less current Ilabllltlo• 966,893 1 ,088,047 Cr•dltord: amount8 falllng du• after moro than one year 17 (202,603) (286.203) Net assots 764,290 801,844 Income funds Restricted funds Unrestricted funds 20 39,403 724,887 54.470 747.374 764.290 801.844 The financlal stalemenls y￿re approved by the Trustees on . MT MCDO Trustse h, Chair AS bieraj. Treasurer Trustee Company r•gl8tratlon numb•r N1023267 16-

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
27
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from/(used in)
investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Relating to:
Cash at bank and in hand
Bank overdrafts included in creditors payable
within one year		 2023
£
£
(150,963)
-
271
271
(83,067)
(83,067)
(233,759)
409,627
175,868
1,504,867
(1,328,999)		 2022
£
£
(174,526)
(78,591)
468
(78,123)
(81,944)
(81,944)
(334,593)
744,220
409,627
3,083,412
(2,673,785)

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Early Years - the organisation for young children is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 6c Wildflower Way, Apollo Road, Belfast, BT12 6TA.

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 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 (FRS 102)” (as amended for accounting periods commencing from 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 Going concern

The charitable company incurred deficits for a number of years up until 2020 and those deficits eroded the unrestricted funds of the organisation. The trustees and management of the organisation have made considerable efforts to improve the finances of the organisation over the past three years and positive progress is being made, despite the difficult economic landscape. As a result of these efforts the charitable company recognised a surplus in the years ended 31 March 2021 and 31 March 2022. However, a small deficit was incurred in the year ended 31 March 2023 and the charitable company remains in the position that it has limited free reserves as at 31 March 2023.

Following the year end, management accounts indicate that the charitable company has generated a surplus in the period since 31 March 2023. In addition, detailed projections and cash flow forecasts have been prepared for the period to 31 December 2024. The projections prepared to 31 December 2024 indicate that there should be adequate resources to enable the charitable company to continue to operate for at least the next twelve months after the date of signing these financial statements. However, the charitable company's ability to continue as a going concern is dependent on forecasts being achieved and no significant unforeseen costs arising.

The conditions outlined above represent a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern and to realise its assets and discharge its liabilities in the normal course of business. Taking all factors into consideration, the directors are of the opinion that it is appropriate that the financial statements are prepared on a going concern basis.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors 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.

1.4 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.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment 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 following bases:

Leasehold land and buildings 2% per annum straight line
Leasehold improvements 4% per annum straight line
Fixtures and fittings 15% per annum straight line
Computers 33% per annum straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Assets under construction are not depreciated until construction is complete and the asset is available for use.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

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 at 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 within borrowings in current liabilities.

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 basis 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 at 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 liabilities, including creditors and bank loans are initially recognised 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 within 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 that 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 presented 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.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities incorporating Income and Expenditure Account on a straight line basis over the lease term.

1.14 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities incorporating Income and Expenditure Account.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying 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.

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 asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Debtors

Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty.

Restricted and unrestricted funds

Judgements are made in relation to allocation of income and expenditure to restricted and unrestricted funds. The directors consider it appropriate to allocate these funds based on interpretation of donations received.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Grants
2,100
112,730
For the year ended 31 March 2022
30,151
79,474		 Total
2023
£
114,830		 Total
2022
£
109,625
109,625

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

4 Charitable activities

SureStarts and support to the sector
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 March 2022
Unrestricted funds
Restricted funds
Detailed analysis of income from charitable activities
Training
Management recharges
Northern Health & Social Care Trust
Southern Health & Social Care Trust
Western Health & Social Care Trust
Health & Social Care Trusts - Other, including SureStart
DE Pathways Fund
DE Pathways management fee
Project grants
Peace IV		 2023
£
9,853,827
1,067,077
8,786,750
9,853,827
1,483,653
8,858,081
10,341,734
254,601
363,478
35,312
54,147
26,745
4,111,329
3,369,271
374,270
842,979
421,695
9,853,827		 2022
£
10,341,734
1,483,653
8,858,081
10,341,734
315,700
781,960
33,974
57,277
60,731
3,955,513
3,458,164
318,494
781,224
578,697
10,341,734

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Other trading activities

Unrestricted
funds
2023
£
Insurance and Members' insurance
10,801
Fundraising events
-
Day care fees
766,665
Sale of publications
15,394
Subscriptions
39,866
Trading activity income: other
164,745
Other trading activities
997,471
Investments
Unrestricted
funds
2023
£
Interest receivable
271		 Total
2022
£
29,434
(739)
661,433
31,328
45,645
111,812
878,913
Total
2022
£
468

6 Investments

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

7 Raising funds

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Fundraising and publicity
Advertising
-
-
Trading costs
Other trading activities
10,211
39
10,211
39
For the year ended 31 March 2022
Fundraising and publicity
-
300
Trading costs
13,466
308
13,466
608		 Total
2023
£
-
10,250
10,250		 Total
2022
£
300
13,774
14,074
300
13,774
14,074

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

8 Charitable activities

Staff costs
DE Pathway grants paid
Accountancy fees
Programme costs
Recruitment expenses
Training course costs
Travel and subsistence
Travel - direct cost
Redundancy costs
Peace IV grants paid
CEPNET grants paid
Share of support costs (see note 9)
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 March 2022
Unrestricted funds
Restricted funds		 Total
2023
£
5,547,955
3,369,270
8,225
820,619
14,110
3,789
1,307
80,016
47,537
4,000
64,389
9,961,217
1,021,596
10,890
10,993,703
2,102,131
8,891,572
10,993,703
1,853,592
9,170,587
11,024,179		 Total
2022
£
5,425,801
3,458,163
7,134
853,952
10,131
9,625
1,160
48,494
33,380
149,325
64,558
10,061,723
953,306
9,150
11,024,179
1,853,592
9,170,587
11,024,179

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

9 Support costs

Depreciation
Computer expenses
Light, heat and power
Training (inclu. SureStarts)
Subscriptions and support services
Sundries
Telephone and fax
Professional fees
Cleaning
Insurance
Rent
Audit fees
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
39,360
-
116,134
-
90,722
-
51,723
-
30,173
-
150,714
-
62,938
-
113,764
-
51,692
-
71,062
-
243,314
-
-
10,890
1,021,596
10,890
1,021,596
10,890		 2023
£
39,360
116,134
90,722
51,723
30,173
150,714
62,938
113,764
51,692
71,062
243,314
10,890
1,032,486
1,032,486		 2022
£
40,942
114,189
70,194
52,851
28,287
130,864
55,021
105,218
52,450
71,059
232,231
9,150
962,456
962,456

Governance costs includes payments to the auditors of £10,890 (2022- £9,150) for audit fees.

10 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

11 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
Management and administration
Charity services
Total		 2023
Number
40
191
231		 2022
Number
42
206
248

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

11 Employees (Continued)

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
£
4,770,449
400,161
377,345
5,547,955		 2022
£
4,689,845
372,140
363,816
5,425,801

Redundancy and termination payments

During the year redundancy payments of £47,537 (2022 - £33,380) were made to 5 (2022 - 8) employees.

Directors and key management personnel remuneration and expenses

The total amount of employee benefits received by key management personnel is £103,257 (2022 - £98,739) The charity considers its key management personnel to comprise of the Chief Executive Officer.

The number of employees whose annual remuneration was more than £60,000 is as follows:

is as follows:
2023 2022
Number Number
In the band £90,001 - £100,000 - 1
In the band £100,001 - £110,000 1 -

12 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 Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13 Tangible fixed assets

Cost
At 1 April 2022
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 Leasehold
land and
buildings
Leasehold
improvements
Assets under
construction
Fixtures and
fittings
£
£
£
£
736,199
92,600
326,006
69,587
736,199
92,600
326,006
69,587
321,137
49,491
-
64,361
14,724
3,704
-
1,260
335,861
53,195
-
65,621
400,338
39,405
326,006
3,966
415,062
43,109
326,006
5,226		 Computers
£
60,497
60,497
28,387
19,672
48,059
12,438
32,110		 Total
£
1,284,889
1,284,889
463,376
39,360
502,736
782,153
821,513

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

14
Stocks
Finished goods and goods for resale
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Notes
Bank loans and overdrafts
18
Other taxation and social security
Deferred income
19
Trade creditors
Other creditors
Accruals and deferred income
Security is as disclosed in note 18.
17
Creditors: amounts falling due after more than one year
Notes
Bank loans
18
Security is as disclosed in note 18.		 2023
£
28,742
2023
£
206,910
470,269
3,167
680,346
2023
£
1,414,345
88,974
4,329
144,850
12,900
363,817
2,029,215
2023
£
202,603		 2022
£
31,063
2022
£
146,116
561,964
5,414
713,494
2022
£
2,758,598
96,720
10,458
119,799
281,181
294,679
3,561,435
2022
£
286,203

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Loans and overdrafts

Loans and overdrafts
Bank overdrafts
Bank loans
Payable within one year
Payable after one year		 2023
£
1,328,999
287,949
1,616,948
1,414,345
202,603		 2022
£
2,673,785
371,016
3,044,801
2,758,598
286,203

The bank overdrafts are secured on the building and a floating charge over the assets of the charitable company.

A guarantee has been pledged by the Department for Business Energy and Industrial Strategy in respect of the bank loan.

Bank loans are being repaid by way of monthly instalments until April 2026 with an interest rate of Danske Bank Base Rate plus 4%.

19 Deferred income

Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2023		 2023
£
4,329
2023
£
4,329
10,458
(10,458)
4,329
4,329		 2022
£
10,458
2022
£
10,458
10,616
(10,616)
10,458
10,458

The deferred income arises in respect of income being received in the year which relates to a future accounting period and in respect of income received in the year where conditions for recognition have not been satisfied. The income will be released to the Statement of Financial Activities in the period to which it relates.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 April 2021
£
AP - Centre of Excellence
7,093
AP - Access to Europe
5,897
SureStarts
1,645
HSCT
-
DE Pathways
6,773
Projects
175,991
Toybox
-
Peace IV
127,477
DE Core Grant
-
324,876		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
1 April 2022
£
£
£
£
-
(11,890)
4,797
-
-
-
(5,897)
-
3,810,828
(3,801,078)
(11,395)
-
151,147
(151,147)
-
-
3,458,164
(3,458,164)
(6,773)
-
326,098
(439,568)
(17,498)
45,023
343,244
(340,440)
-
2,804
583,074
(703,908)
-
6,643
265,000
(265,000)
-
-
8,937,555
(9,171,195)
(36,766)
54,470		 Movement in funds
Incoming
resources
Resources
expended
Transfers
31
£
£
£
-
-
-
-
-
-
3,949,329
(3,949,329)
-
176,204
(176,204)
-
3,369,271
(3,369,271)
-
384,500
(393,514)
(22,936)
333,481
(333,768)
-
421,695
(404,526)
-
265,000
(265,000)
-
8,899,480
(8,891,612)
(22,936)		 Balance at
March 2023
£
-
-
-
-
-
13,073
2,517
23,812
-
39,403

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

21 EXPLANATORY NOTES TO THE FUNDS

UNRESTRICTED FUNDS

General Funds

This reflects the short-term tactical reserves required by the Organisation and represents approximately 4 weeks’ worth of unrestricted expenditure to cover short-term setbacks or cash flow difficulties.

RESTRICTED FUNDS

Atlantic Philanthropies (AP) and Associated Funds

Over a number of years the charity received funding from Atlantic Philanthropies to support a long-term research, practice and policy development programme focused on outcomes for young children. This project has concluded.

Atlantic Philanthropies has supported Early Years in the design and development of plans for the construction of an Early Years Centre of Excellence in Clogher Valley.

SureStarts

Funding from various Trusts and Childcare Partnerships for a number of SureStart projects.

Health and Social Care Trusts

Funding for an advisory service providing support, training and quality assistance for early years groups within each Trust area, as follows:

DE Pathway

A fund managed by Early Years for the Department of Education to improve the development of children who are at risk of not reaching their full potential within the school system and develop an enhanced, more sustainable Early Years sector.

Projects

Funding for a range of projects delivered by the charity.

Toybox Project

Funds for an outreach play development project for Traveller Children.

Peace IV

This is funding received from SEUPB. This project aims to bring about a positive attitude and behavourial change among children, parents, teachers and the wider community. The project uses an evidence based approach to purposeful, direct and sustained curriculum-based contact between children of different religious backgrounds.

DE Core Funding

Funding from the Department of Education to support core costs of Early Years .

Transfers

During the year the charity made transfers from restricted to unrestricted funds totalling £22,936. The balance arose due to the fact that overhead costs were not fully allocated to certain funds in prior years.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

22 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £377,345 (2022 - £363,816).

23 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31 March 2023 are
represented by:
Tangible assets
782,153
-
Current assets/(liabilities)
145,337
39,403
Long term liabilities
(202,603)
-
724,887
39,403		 Total
2023
£
782,153
184,740
(202,603)
764,290		 Total
2022
£
821,513
266,534
(286,203)
801,844

24 Conduit funding

Early Years is responsible for receiving and distributing funds on behalf of the Department of Education in respect of the Childcare Sustainability Fund and Childcare Temporary Closure Fund. During the year £1,196,651 was received by the charity in relation to these funds. Included within this figure is management fees of £95,329 that have been recognised as income of the charity. The remaining amount of £1,101,322 was distributed by the charity, £2,100 of which went to childcare groups operated by the charity and has been recognised as income. The remainder has been treated as conduit funding and, as such, has not been recognised as income and expenditure of the charity.

25 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2023
£
134,710
289,991
495,000
919,701		 2022
£
139,247
379,701
540,000
1,058,948

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

26 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Adventures day nursery
Lollipop playgroup		 Grants paid
2023
2022
£
£
-
16,902
22,500
22,500
22,500
39,402		 Grants paid
2023
2022
£
£
-
16,902
22,500
22,500
22,500
39,402
39,402

The above Trustee owned nursery and playgroup received grants from the Pathway fund and Covid response fund.

During the year the charity provided management and administrative support to Early Years ROI for no charge. In addition, the charity received funds on behalf of Early Years ROI and at the balance sheet date an amount of £10,064 remained due to Early Years ROI.

27
Cash generated from operations
(Deficit)/surpus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in stocks
Decrease/(increase) in debtors
(Decrease) in creditors
(Decrease) in deferred income
Cash absorbed by operations
28
Analysis of changes in net debt
At 1 April 2022
£
Cash at bank and in hand
3,083,412
Bank overdrafts
(2,673,785)
Loans falling due within one year
(84,813)
Loans falling due after more than one year
(286,203)
38,611		 2023
2022
£
£
(37,554)
292,487
(271)
(468)
39,360
40,942
2,321
577
33,148
(120,620)
(181,838)
(387,286)
(6,129)
(158)
(150,963)
(174,526)
Cash flowsAt 31 March 2023
£
£
(1,578,545)
1,504,867
1,344,786
(1,328,999)
(533)
(85,346)
83,600
(202,603)
(150,692)
(112,081)		 2022
£
292,487
(468)
40,942
577
(120,620)
(387,286)
(158)
(174,526)
(112,081)

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

29 Contingent liabilities

A portion of grants received may become repayable of the charitable company fails to comply with the terms of the letter of offer.

30 Members' liabilty

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before they cease to be a member.