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← Early Years - the organisation for young children

2024-03-31-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 2024

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees MT McDonagh, Chair N Fulton J Barkley R Park, Treasurer S McCambley F Loye (Appointed 24 November 2023) 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 - 34

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their annual report and financial statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (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 2024

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 2024

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.

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 2024

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. The organisation also implemented a programme for new leaders within the sector.

Early Years continues 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. Early Years continues to play a lead role in the Early Childhood Peace Consortium and the International Network on Peacebuilding with Young Children. They delivered a new publication highlighting successes around the world launched at a high profile event in New York.

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 continues 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 4 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 made a substantial funding bid, that, if successful, will enable the scaling up of this vital work.

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 continues to deliver 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.

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 2024

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 and Early Years is delighted to be in a position to commence delivery of the ASPIRE program in September 2024. 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 build its reputation in fund management and was delighted to be appointed to deliver the Northern Ireland Childcare Subsidy Scheme on behalf of DE commencing September 2024.

Early Years continues to consolidate its international reputation on peacebuilding with young children through the International Network on Peacebuilding with Young Children.

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 9 and 10 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 34. The Charity had net incoming resources for the year of £580,272. In 2023, the Charity had net outgoing resources of £112,368 (as restated).

At 31 March 2024, the total funds of the charity amounted to £1,269,748 (2023 - £689,476) comprising restricted funds of £290,406 and unrestricted funds of £979,342.

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 26 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 £750,027, net current assets of £348,792 and long term liabilities of £119,477.

The unrestricted funds position is a result of several challenging years for the organisation which put pressure on reserves in the period from 2015-2020. The unrestricted funds position improved during the years ended 31 March 2021 and 31 March 2022, worsened in the difficult economic environment that prevailed in the year-ended 31 March 2023, but shows an improvement again in the year to 31 Match 2024.

The Board and the Senior Management Team remain committed to a finance strategy which seeks to build up the level of reserves in the short to medium term. During the year ended 31 March 2024, Early Years continued its successful management of the Pathway Fund and completed delivery of a major Peace IV project.

Although the level of unrestricted reserves at 31 March 2024 has improved, the organisation’s financial position still needs further strengthening and a continued focus on growing 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 2025. 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 2024

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: The balance at 31 March 2024 was £979,342 (2023 - £650,073), which includes fixed assets with a net book value of £750,027. This reflects the short-term tactical reserves required by the Organisation and represents approximately 6 weeks’ worth of unrestricted expenditure to cover short-term setbacks or cash flow difficulties. 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 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 22 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 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 2024

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 (Resigned 31 December 2023) N Fulton J Barkley R Park, Treasurer S McCambley F Loye (Appointed 24 November 2023)

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 2024

Statement of Trustees' responsibilities

The trustees, who are also the directors of Early Years - the organisation for young people for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that GMcG BELFAST be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' report, including the strategic report, was approved by the Board of Trustees.

.............................. MT McDonagh, Chair Director

.............................. R Park, Treasurer Director

15th October 2024 Dated: .........................

15th October 2024 Dated:.........................

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

Opinion

We have audited the financial statements of Early Years - the organisation for young children (the ‘charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity for the 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 internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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 which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Nigel Moore FCA (Senior Statutory Auditor) for and on behalf of GMcG BELFAST

.........................

Chartered Accountants Statutory Auditor

Chartered Accountants & Statutory Auditor

Alfred House 19 Alfred Street Belfast BT2 8EQ

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
funds
2024
Notes
£
Income from:
Donations and legacies
3
-
Charitable activities
4
1,001,024
Other trading activities
5
1,132,706
Investments
6
685
Total income
2,134,415
Expenditure on:
Raising funds
7
2,490
Charitable activities
8
2,104,898
Total expenditure
2,107,388
Net income/(expenditure)
27,027
Transfers between
funds
302,242
Net movement in
funds
10
329,269
Reconciliation of funds:
Fund balances at 1 April 2023
650,073
Fund balances at 31 March
2024
979,342		 Restricted
funds
2024
£
201,436
9,218,428
-
-
9,419,864
4,992
8,861,627
8,866,619
553,245
(302,242)
251,003
39,403
290,406		 Total
Unrestricted
funds
2024
2023
as restated
£
£
201,436
2,100
10,219,452
1,067,077
1,132,706
997,471
685
271
11,554,279
2,066,919
7,482
10,211
10,966,525
2,176,945
10,974,007
2,187,156
580,272
(120,237)
-
22,936
580,272
(97,301)
689,476
747,374
1,269,748
650,073		 Restricted
Total
funds
2023
2023
as restated
£
£
112,730
114,830
8,786,750
9,853,827
-
997,471
-
271
8,899,480
10,966,399
39
10,250
8,891,572
11,068,517
8,891,611
11,078,767
7,869
(112,368)
(22,936)
-
(15,067)
(112,368)
54,470
801,844
39,403
689,476

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

BALANCE SHEET

AS AT 31 MARCH 2024

2024 2023
as restated
Notes £ £ £ £
Fixed assets
Tangible assets 14 750,027 782,153
Current assets
Stocks 15 23,583 28,742
Debtors 16 676,382 680,345
Cash at bank and in hand 1,706,129 1,504,867
2,406,094 2,213,954
Creditors: amounts falling due within 17
one year (1,766,896) (2,104,028)
Net current assets 639,198 109,926
Total assets less current liabilities 1,389,225 892,079
Creditors: amounts falling due after
more than one year 18 (119,477) (202,603)
Net assets excluding pension liability 1,269,748 689,476
Net assets 1,269,748 689,476
The funds of the charity
Restricted income funds 21 290,406 39,403
Unrestricted funds 979,342 650,073
1,269,748 689,476
The financial statements were approved by the Trustees on .........................
15th October 2024		 The financial statements were approved by the Trustees on .........................
15th October 2024
.............................. ..............................
MT McDonagh, Chair R Park, Treasurer
Director Director

Company registration number NI023257 (Northern Ireland)

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2024

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
28
Investing activities
Investment income received
Net cash generated from investing
activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase/(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		 2024
£
£
429,192
685
685
(76,453)
(76,453)
353,424
175,868
529,292
1,706,129
(1,176,837)		 2023
£
£
(150,963)
271
271
(83,067)
(83,067)
(233,759)
409,627
175,868
1,504,867
(1,328,999)

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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 four years and positive progress has been 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, although this was followed by a deficit in the year ended 31 March 2023. The charitable company made a healthy surplus in the year ended 31 March 2024 of £580,272. Despite the surplus in the year, the charitable company is in the position that free reserves are £229,315 as at 31 March 2024, which is below target.

Following the year end, management accounts indicate that the charitable company has generated a further surplus in the period since 31 March 2024. In addition, detailed projections and cash flow forecasts have been prepared for the period to 31 December 2025. The projections prepared to 31 December 2025 indicate that there are 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.

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 or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 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 2024

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 2024

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 2024

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.

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.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

3
Donations and legacies
Unrestricted
Restricted
funds
funds
2024
2024
£
£
Grants
-
201,436
For the year ended 31 March 2023
2,100
112,730
4
Charitable activities
SureStarts and support to the sector
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 March 2023
Unrestricted funds
Restricted funds
Detailed analysis of income from charitable activities
Training
Management recharges
Atlantic Philanthropies
Southern Health & Social Care Trust
Northern & Western Health & Social Care Trust
Health & Social Care Trusts - Other, including SureStart
DE Pathways Fund
DE Pathways management fee
Project grants
Peace IV		 Total
2024
£
201,436
2024
£
10,219,452
1,001,024
9,218,428
10,219,452
1,067,077
8,786,750
9,853,827
280,963
361,722
600,000
55,362
31,700
4,196,606
3,414,660
358,340
577,738
342,361
10,219,452		 Total
2023
£
114,830
114,830
2023
£
9,853,827
1,067,077
8,786,750
9,853,827
254,601
363,478
-
54,147
62,057
4,111,329
3,369,271
374,270
842,979
421,695
9,853,827

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

5 Other trading activities

Unrestricted
funds
2024
£
Insurance and Members' insurance
15,820
Day care fees
917,116
Sale of publications
9,289
Subscriptions
39,245
Trading activity income: other
151,236
Other trading activities
1,132,706
Investments
Unrestricted
funds
2024
£
Interest receivable
685
Raising funds
Unrestricted
Restricted
Total
funds
funds
2024
2024
2024
£
£
£
Trading costs
Other trading activities
2,490
4,992
7,482
2,490
4,992
7,482
For the year ended 31 March 2023
Trading costs
10,211
39		 Total
2023
£
10,801
766,665
15,394
39,866
164,745
997,471
Total
2023
£
271
Total
2023
£
10,250
10,250
10,250

6 Investments

7 Raising funds

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

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
Unrecoverable VAT
Bad debt write off
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 2023
Unrestricted funds
Restricted funds		 Total
Total
2024
2023
as restated
£
£
5,469,165
5,547,955
3,414,659
3,369,271
4,480
8,225
807,536
820,619
10,972
14,110
3,472
3,789
31
1,307
89,804
80,016
57,537
47,537
151,721
4,000
-
64,389
27,961
74,813
1,409
-
10,038,747
10,036,031
916,343
1,021,596
11,435
10,890
10,966,525
11,068,517
2,104,898
2,176,945
8,861,627
8,891,572
10,966,525
11,068,517
2,176,945
8,891,572
11,068,517		 Total
Total
2024
2023
as restated
£
£
5,469,165
5,547,955
3,414,659
3,369,271
4,480
8,225
807,536
820,619
10,972
14,110
3,472
3,789
31
1,307
89,804
80,016
57,537
47,537
151,721
4,000
-
64,389
27,961
74,813
1,409
-
10,038,747
10,036,031
916,343
1,021,596
11,435
10,890
10,966,525
11,068,517
2,104,898
2,176,945
8,861,627
8,891,572
10,966,525
11,068,517
2,176,945
8,891,572
11,068,517
10,036,031
1,021,596
10,890
11,068,517
2,176,945
8,891,572
11,068,517

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

9
Support costs
Support
costs
Governance
costs
2024
£
£
£
Depreciation
32,126
-
32,126
Computer expenses
113,741
-
113,741
Light, heat and power
72,709
-
72,709
Training (inclu. SureStarts)
43,730
-
43,730
Subscriptions and support services
25,705
-
25,705
Sundries
138,918
-
138,918
Telephone and fax
48,290
-
48,290
Professional fees
112,122
-
112,122
Cleaning
39,757
-
39,757
Insurance
72,705
-
72,705
Rent
216,540
-
216,540
Audit fees
-
11,435
11,435
916,343
11,435
927,778
Analysed between
Charitable activities
916,343
11,435
927,778
Governance costs includes payments to the auditors of £11,435 (2023- £10,890) for audit fees.
10
Net movement in funds
2024
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
11,435
Depreciation of owned tangible fixed assets
32,126		 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
2023
£
10,890
39,360

11 Trustees

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

12 Employees

The average monthly number of employees during the year was:

Management and administration
Charity services
Total		 2024
Number
36
186
222		 2023
Number
40
191
231

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

12 Employees (Continued)

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2024
£
4,709,217
376,503
383,445
5,469,165		 2023
£
4,770,449
400,161
377,345
5,547,955

Redundancy and termination payments

During the year redundancy payments of £57,537 (2023 - £47,537) were made to 6 (2023 - 5) employees.

Directors and key management personnel remuneration and expenses

The total amount of employee benefits received by key management personnel is £107,878 (2023 - £114,785) 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:
2024 2023
Number Number
In the band £60,001 - £70,000 2 -
In the band £70,001 - £80,000 1 -
In the band £80,001 - £90,000 - 1

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

14
Tangible fixed assets
Leasehold
land and
buildings
Leasehold
improvements
Assets under
construction
Fixtures and
fittings
£
£
£
£
Cost
At 1 April 2023
736,199
92,600
326,006
69,587
At 31 March 2024
736,199
92,600
326,006
69,587
Depreciation and
impairment
At 1 April 2023
335,861
53,195
-
65,621
Depreciation charged in the
year
14,724
3,704
-
1,260
At 31 March 2024
350,585
56,899
-
66,881
Carrying amount
At 31 March 2024
385,614
35,701
326,006
2,706
At 31 March 2023
400,338
39,405
326,006
3,966
15
Stocks
Finished goods and goods for resale
16
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 Computers
£
60,497
60,497
48,059
12,438
60,497
-
12,438
2024
£
23,583
2024
£
265,961
1,057
409,364
676,382		 Total
£
1,284,889
1,284,889
502,736
32,126
534,862
750,027
782,153
2023
£
28,742
2023
£
206,909
-
473,436
680,345

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

17
Creditors: amounts falling due within one year
Notes
Bank loans and overdrafts
19
Other taxation and social security
Deferred income
20
Trade creditors
Other creditors
Accruals
Security is as disclosed in note 20.
18
Creditors: amounts falling due after more than one year
Notes
Bank loans
19
Security is as disclosed in note 20.
19
Loans and overdrafts
Bank overdrafts
Bank loans
Payable within one year
Payable after one year		 2024
2023
as restated
£
£
1,268,856
1,414,345
171,823
163,787
-
4,329
51,445
144,850
20,271
12,900
254,501
363,817
1,766,896
2,104,028
2024
2023
£
£
119,477
202,603
2024
2023
£
£
1,176,837
1,328,999
211,496
287,949
1,388,333
1,616,948
1,268,856
1,414,345
119,477
202,603		 2024
2023
as restated
£
£
1,268,856
1,414,345
171,823
163,787
-
4,329
51,445
144,850
20,271
12,900
254,501
363,817
1,766,896
2,104,028
2024
2023
£
£
119,477
202,603
2024
2023
£
£
1,176,837
1,328,999
211,496
287,949
1,388,333
1,616,948
1,268,856
1,414,345
119,477
202,603
2,104,028
2023
£
202,603
2023
£
1,328,999
287,949
1,616,948
1,414,345
202,603

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%.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

20
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 2023
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2024		 2024
£
-
2024
£
-
4,329
(4,329)
-
-		 2023
£
4,329
2023
£
4,329
10,458
(10,458)
4,329
4,329

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.

21 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

SureStarts
HSCT
DE Pathways
Projects
Toybox
Peace IV
DE Core Grant
Atlantic Philanthropies		 At 1 April
2023
Incoming
resources
Resources
expended
£
£
£
-
4,033,066
(4,033,066)
-
147,062
(147,062)
-
3,414,660
(3,414,660)
13,073
314,080
(328,925)
2,517
349,703
(347,015)
23,813
342,361
(366,174)
-
218,932
(218,932)
-
600,000
(10,785)
39,403
9,419,864
(8,866,619)		 Transfers
At 31 March
2024
£
£
-
-
-
-
-
-
1,395
(377)
(5,205)
-
-
-
-
-
(298,432)
290,783
(302,242)
290,406

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

21
Restricted funds (Continued)
Previous year:
SureStarts
HSCT
DE Pathways
Projects
Toybox
Peace IV
DE Core Grant		 At 1 April
2022
Incoming
resources
Resources
expended
£
£
£
-
3,949,329
(3,949,329)
-
176,204
(176,204)
-
3,369,270
(3,369,270)
45,023
384,500
(393,514)
2,804
333,481
(333,768)
6,643
421,696
(404,526)
-
265,000
(265,000)
54,470
8,899,480
(8,891,611)		 Transfers
At 31 March
2023
£
£
-
-
-
-
-
-
(22,936)
13,073
-
2,517
-
23,813
-
-
(22,936)
39,403

22 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds
Previous year (as restated):
General funds		 At 1 April
2023
Incoming
resources
Resources
expended
£
£
£
650,073
2,134,415
(2,107,388)
At 1 April
2022
Incoming
resources
Resources
expended
£
£
£
747,374
2,066,919
(2,187,156)		 Transfers
At 31 March
2024
£
£
302,242
979,342
Transfers
At 31 March
2023
£
£
22,936
650,073

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

23 EXPLANATORY NOTES TO THE FUNDS

UNRESTRICTED FUNDS

General Funds

This reflects the short-term tactical reserves required by the Organisation and represents approximately 6 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 £302,242. For transfers of £3,810 the balance arose due to the fact that overhead costs were not fully allocated to certain funds in prior years. For the transfer of £298,432 from Atlantic Philanthropies, this was a reimbursement of unrestricted funds that Early years had spent on the clogher project in prior years.

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

24 Retirement benefit schemes
2024 2023
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 383,445 377,345

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.

25 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2024
2024
£
£
Fund balances at 31 March 2024 are
represented by:
Tangible assets
750,027
-
Current assets/(liabilities)
348,792
290,406
Long term liabilities
(119,477)
-
979,342
290,406		 Total
2024
£
750,027
639,198
(119,477)
1,269,748		 Total
2023
£
782,153
109,926
(202,603
689,476

26 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		 2024
£
107,920
109,500
-
217,420		 2023
£
134,710
289,991
495,000
919,701

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

27 Related party transactions

Transactions with related parties

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

Giggles Early Years
Lollipop playgroup		 Grants paid
2024
2023
£
£
30,000
-
-
22,500
30,000
22,500		 Grants paid
2024
2023
£
£
30,000
-
-
22,500
30,000
22,500
22,500

The above Trustee owned nursery and playgroup received grants from the Pathway 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 £5,131 remained due to Early Years ROI.

28
Cash generated from operations
Surplus/(deficit) 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 in debtors
(Decrease) in creditors
(Decrease) in deferred income
Cash generated from/(absorbed by) operations
29
Analysis of changes in net funds/(debt)
At 1 April 2023
£
Cash at bank and in hand
1,504,867
Bank overdrafts
(1,328,999)
Loans falling due within one year
(85,346)
Loans falling due after more than one year
(202,603)
(112,081)		 2024
2023
£
£
580,272
(112,368)
(685)
(271)
32,126
39,360
5,159
2,321
3,963
33,149
(187,314)
(107,025)
(4,329)
(6,129)
429,192
(150,963)
Cash flowsAt 31 March 2024
£
£
201,262
1,706,129
152,162
(1,176,837)
(6,673)
(92,019)
83,126
(119,477)
429,877
317,796		 2023
£
(112,368)
(271)
39,360
2,321
33,149
(107,025)
(6,129)
(150,963)
317,796

EARLY YEARS - THE ORGANISATION FOR YOUNG CHILDREN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

30 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.

31 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.

32 Prior period adjustment

During the year the charity identified an error in the prior year partial exemption VAT calculations resulting in the VAT liability to be understated in the prior year. A prior year adjustment has been processed to recognise the additional VAT liability. The impact of this adjustment has been to increase the VAT liability and irrecoverable VAT expense by £74,813 in the year ended 31 March 2023.