Charity Number: NIC 106073 Company Number: IYI 055960 NE FnisT STEPS CHILD ENI'kE LTD Aeom Limittd b G TRVSTFF ' REPORT IIDI Cy DIRECTO D FINANCIAI, STATEMF.N All teo I MARCH 2
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD REPORT OF THE DIRECTORS AND FINANCIAL TATEMENTS YEAR FNDED 31 MARCH 2023 TABLE OF CONTENTS Page Company Infonnation Trustees, Annual Report (including the Directors, report) Independent Auditor's Report to the members 10-14 Statement of Financial Aclivities (including income and ¢xpenditure account) 15 Statement of Financial Position 16 Notes to the Financial Statements 17-23
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD COMPAKY INFORMATION Company registration number N.1. 055960 Charity registration number NIC 106073 Directors and trustees Cathy Fitzsimons John McGeown Denise Rooney (Resigned 5 June 2023) Mary Ann Mcllwee (Appointed 5 June 2023) Secretary Donal McKinney Registered office 265 Old Whiterock Road Belfast BT12 7FX Auditors Jones Pelers Registered Auditors Chartered Accountants 6 Church Street Banbridg¢ BT32 4AA Bankers AIB 26 University Road Belfast BT7 INH Solicitors Edwards & Co. Solicitors 28 Hill Street ]3elfast BTI 2LA
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANNUAL REPORT NCLUDING THE DIRECTORS. REPORT FOR THE YEAR ENDED 31 MARCH 2023 Report of the Trustees for tbe year ending 31 March 2023 Th¢ truslees are pleased to present their annual trustees, report together with the financial statements of the charitable company for the year ending 31 March 2023 which are also prepared to me¢t the requirements for a directors, report and accounts for Companies Act purposes. The financial statements comply with current statutory r¢quir¢ments including the Charities Act (Northern Ireland) 2008 amended by the Charities Act (Northern Ireland) 2013, Companies Act 2006, the Charity's Memorandum and Articles of Association, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with th¢ Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Principal Activity First Step's objective is to encourage the provision of services, training, recreation and oiher leisure time occupation for children aged 0-8 years within N. Ireland. Those who require such services by reason of their youth, poverty, disablement or social and economic circumstances and which will improve the conditions of the young peoples lives by providing for their mental and spiritual wellbeing. Statcment of Public Benefit 1.he charity's purposc is to: advance the education, development, physical and emotional wellbeing of children. to relieve those in need by reason of their youth, providing facilities for leisure-time occupation, so that their conditions of life may be improv¢d. To relieve and prevent poverty The charity does this by providing affordable daycare to pre-school Children within the Upper Springfield I Whit¢rock area of West Bclfast, an area of high multiple deprivation. The charity provides high quality facilities which educat¢ and enhances the development of local children and which enables their parents and carers, including those on low incomes, lone parents and school aged mums, to hold down employment, continue their education or attend training. The direct benefits which flow from the5¢ purposes are the improvement to the education and employability of persons within the local area. These benefits are evidenced by attendance registers, feedback from parents and carers, inspections by social servi¢¢s and monitoring and evaluations, surveys, the charity's annual accounts and trustees, report. The charity employs staff to run its daycare centre for pre-school children but their employment is incidental and entirely necessary to the provision of a high quality daycare facility for pre-school children which meets statutory requirements.
NEWHILL FtRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANNUAL REPORT NCLUDING THE DIRECTORS, REPORT FOR THE YEèKR ENDED 31 MARCH 2023 Acbievements and Perforniance Service Provision In the year covered by this report the centre continued to have an ongoing, positive impact in a wide range of areas which met all our charitable purposes. Childcgre First Steps core function is the provision of quality early years provision through a social economy model. This sustainable delivery model compliments the Department of Education's vision: 'every young person achieving to his or her full potential at each stage ofhis or her development., There is an extensive body of research pointing to the rolc carly education can play in promoting children's development. Two points Cmerge consistently from the evidence. Firstly. children at greater risk of starting school at a disadvantage hav¢ most to gain from early education, meaning even universal provision can help to narrow gaps in child development. Research has found larger benefits for children whose parents have less education, children from families with lower incomes, and Children for whom English is an additional language. The skills and abilities dcveloped in the early years provide the platforn] for later learning, while early defjcits can have1>ing consequences for later inequality and social mobility. We also know that early interventions can havc large and lasting effects on children's development. As noted, the project's catchment area is in some of Nl's poorcst areas which means people experience social, educational and health dcprivation from their earliest days. Educational disadvanlage is a complex and deeply- rooted issue. Howcver, an educational disadvantage mcans the denial of equal access to educational opportunities, the tendency to leave education at the first opportunity, and the hindrance of achievement by social and cnvironmcntal factors. A social disadvantage both limits access to educational opportunities and reduces the ability of childrcn to b¢nefit from the schooling thcy do get. Children growing up in poverty and disadvantaged in our d¢signated SOAS are less likely to do well at school. This feeds into disadvantages in later lif¢ and in tum affects theirchildren. To break this cycle we need to address the attitudes and experiences that lie behind social differences in education and that must start at the earliest stage. The quality of early education and Gare matters, not only because it affects the everyday experiences of our children but because the b¢nefits are only realised if the provision used is high quality. Our different early years specialilies support quality learning by providing aclivities and materials that children find engaging. By facilitatin8 learning? supplying a developmcntally appropriate cnvironment, interesting materials, adequate time to explor¢, play and int¢ract; children find learning easy and fun. After School Project Our community based after school project provides an accessible and affordable service, meeting the needs of children, and the needs of the local community. School activities do wondcrs for a child's development. They are linkcd to improving social skills, grades, overall coordination, sense-of-self and relationships with adults other than their parents or guardians. After school programmes and activities also give kids a chance to be themselves, free of the structure they face at school.
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANNUAL REPORT NCLUDING THE DIRECTORS, REPOR FOR THE YEAR ENDED 31 MARCH 2023 The projects offer different support: l. Our children and young people are cared for in a safe and secure play and recreational environment providing children with the saf¢ space that they need while allowing parents some time for work or other activities. 2. Mixed environments where children and young people can play, do homework and are supported in all activitics. This approach regards aftcr school care notjust as a safe haven, butalso as providing developmental support for our children and thcir families. Social, sporting and cultural activities are part of the daily activities. KmpACt: Outputs 2nd Outcomes First Steps provides a wide range of services that enables community devclopm¢nt to flourish through our own work and with our community partners, Day Care First Steps Childcare Registration BHSCT sponsored day care Summcr Scheme 68 daycare placements 72 childcare places 1.045 places 24 plaLes Structure, Governance and Managcment Governing Document First Steps is a company registered in N. Ireland, which was incorporated under the Companies (Northern Ireland) Order 1986 on 21 July 2005. The company is govcmed by a Mcmorandum and Articlcs of Association. The company's objectives are charitable in naturo and it has eslablishcd charitable slatus. Th¢ Company's business is managed by the directorsltruslees who arc considered to be the members of thc company. Trustees, Appointment and Tralnillg 'rhe Irustees recruit and select new trustecs as set out in the governing document. The Board recruits new trustees with regards to skills, gaps and the new members, potential to mak¢ a real contribution to the charity's overall governance. The Board predicate trust¢es' appointments on our organisational values and make n¢w members awar¢ of their legal rcsponsibilities under charity and company law. Our Members, induction pack outlines our Article5 of Association, board struclure, organisational structure, decision making processes, and our overview of finances. Our formal induction provides new board members with the infornialion and training they need to take up their appointment as effectively as possible. Finance, Pay and Remuneration First Steps operates robust financial procedures which the Board regularly review and independently assess. We have clear financial management systems to ensure effective and appropriate use of spend. administering resources cost-effectively, transparently and accountably with clear audit trails. All Board members give their time freely and no member received any remuncration during the year.
NEWHtLL FIRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANNUAL REPORT CLUDING THE DIRECTORS, REPOR FOR THF YEAR ENDED 31 MARCH 2023 Organisational structure The Board administers the charity and nonnally meets at least I I times per year. As part of its structure the Board operates three sub committees: finance, audit and risk; human resources, and remuneration. The Board appoint a chief executive to manage the charity's day to day operations. To ensure effective daily manag¢ment the manager has delegated authority Wlthin ternis of delegation through th¢ Board's approval for operational matters including finance, employment and dirext charitable activities. Risk Management Our approach to the management of risk is infonned by the n¢ed to ensure that the risks inherent in the pursuit of our objectives ar¢ underslood, will be manageable if realised, and that appropriate mitigation measures are planned or in place. Responsibility for the managem¢nt of specific risks is carried by named individuals and groups, but th¢ highest level risks, those that have a direct bearing on the Newhill First Sieps Childcare Centre E,td capacity to achieve its strategic objectives, are managed by the senior management team. The Newhill First Steps Childcare Centre Ltd finance and audit risk Committee plays an active role in risk monitoring and have a risk managemcnt strategy that comprises: An annual review of the principal risk and uncertainlies that the charity takes; The establishment of policies, systems and procedures to anticipate risks in the annual review; and The implemcntation of procedures designed to minimise or manage any potential impact on the charity should those issues materialise. Reputational Riskg: The Trustees are conscious of the importance of its reputation as a well run organisation d¢livering publiL bencfit and have undertaken steps to ensure Newhill first Steps Childcare Centre Ltd governancc and managemcnt structures arL' robust and give confidence to all stak¢hold¢rs and operate in linc with our values. Financial Risks: The organisation exposes itself to a variety of financial risks. Measures to mitigate this risk includc strong budgctsry management and cost control and proactive ne8Otialions with tenants and kcy stakcholders. Health and Safety Risky: The Trustees recognisc th¢ importAnce of safety in all of our services. Newhill First Step5 Childcare Centre Ltd implcments robust systems and structures to cnsure all health and safety regulations ar¢ complied with, Legal and RegulAtory Risks: Thc charity is required to comply with 8 wider range of legal and regulatory obligations. Policics and procedures are in place to ensure compliance with these obligations, however, there inevitably remains a residual risk of an operational failure resulting in a breach of these obligations. Xnsurable Risks: The organisation incurs exposure to employer, public and propety damage liability by virtue of the nature of its op¢rations. While a stron8 emphasis is placed on health and safety and risk management practices to avoid liability arising, insurance cover is maintained to mitigate the financial impact from such events. Performance Risks: There is a risk that the high quality of our services may not be maintained and we perfonn below the expectations of our funders as set out in thcir service level agreements. The trustees monitor performance on an ongoing basis and have implemented annual service audit programmes as well as staff and service uscr surveys to provide them with assurance in this regard.
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD TRU TEES, ANNUAL REPORT INCLUDING THE DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2023 Financial Review and Results for the Year Financial Revieiv Incoming resources have decreased from £426,348 in the year ended 31 March 2022 to £423,134 in the year ended 31 March 2023. Resources expended on charitable activities have increased from £411,539 to £453,095 in the year ended 31 March 2023. As a result, net outgoin&i resources amounted to £29,961 for the year ended 31 March 2023 compared to net incoming resources in 2022 of £14,809. The results for the year are set out in Statemcnt of Financial Activitics on pa8e 15 and in the related notes. The company had net assets of £564,965 as at 31 March 2023 (2022: £594,926) as detailed on the Statement of Financial Position on page 16. Reserves Policy and Golng Concern At 31 March 2023 free reserves amounted to £80.805 of which all £70,000 has been designated to cover Costs including exp¢nditure on upcoming programmc5 and redundancy payments. Thc trustces hav¢ considered futurc financial projections and future funding requirements and have a reasonable expectation that the charity has adequatc resources to continue in operational exislencc for the foreseeable future and for this reason they continue to adopt the going concern bases in preparing the financial slatcments. Further details regarding the adoption of the going conccrn basis can be found in th¢ accountins policies. Events after the Balance Shect Date 'rh¢r¢ We no significant events affecting the company after the ycar end. Plans for the Future The company aims to advance discussions with other local childcare care providers with regards to mergers and rationalisation of services. Tru5tees' Responsibility StatemeDt The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (Unitsd Kingdom Generally Accepted Accounting Practicc). Company law require5 the charity trustecs to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period. In preparing these financial statements, the trust¢e5 are required to: select suitable accounting pol icies and then apply them consistently. observe the methods and principles in the applicable Charities SORP; make judgements and accounting estimates that are reasonable and prudent" prepare the fmancial statements on the going concern basis unless it is inappropriate lo presume that the charity will continue in business.
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANNUAL REI PORT NCLUDING TItE DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2023 The trustees are r¢sponsibl¢ for keeping adequate ac¢ounting re¢ords that are sufficient to show and explain the charity's transactions and disclose with reasonable aGcuracy 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 or the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irre8ularitics. Auditor Each of thc pcrsons who is a trustee at the date of approval of this report confirms that: so far as they are aware, th¢r¢ is no relevant audit information of which the charity's auditor is unaware; and they have taken all stcps that they ought to have taken as a trustee to make thcmselves aware of any relevant audit information and to establish that the charity's auditor is aware of that infomation. The auditor is deemed to have been reappointed in accordance with Section 487 of the Companies Act 2006. Small eompany provisions This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies, exemption. This eport was approved by the board on 18 December 2023 and signed on its behalf by: . M¢Geown Trustee
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD INDEPENDENT AUDITOR'S REPORT TO THE TrmBERs FOR THE YEAR ENDED 31 MARCH 2023 Opinion We have audited the financial statements of Newhill F irst Steps Childcare Centre Ltd (the 'charity') for the year ended 31 March 2023 which comprise the statement of financial activities (including income and expenditure account), statement of financial position and the relat¢d notes, including a summary of significant accounting policies. The financial reporting framework that has bcen applied in their prcparation is applicable law and the United Kingdom Accounting Standards including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charity's anairs as at 31 March 2023 and of its incoming resources and application of resources, including its incomc and cxp¢nditur¢, for th¢ y¢ar thcn ¢nd¢d' have been properly prepared in accordance with United Kingdom Generally Acc¢pted Accounting Practice. and have been prepared in accordance with the rcquirements of the Companies Act 2006. Bayis 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 describ¢d in the auditor's r¢5ponsibilities for the audit of the financial statcments section of our rcport. We are indepcndent of the charitable company in accordance with the ethical requirements that are levant 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 accordtmce with these requirements. We b¢li¢ve that the audit evidenle w¢ have obtained is sufficicnt and appropriate to providc a basib for our opinion. Conclusions relating to going concern In auditing the financial statements, we have Concluded that the trustees, use of th¢ going concern basis of accounting in the preparation of the financial statements is appropriate. B&sed on the work we have perfonned, 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 s¢ctions of this report. 10
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD INDEPFNDENT AUDITOR'S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2023 Other information The other infomation comprises the infornation included in the annual report. other than the financial statements and our auditor's report thereon. The trustees are r¢sponsible for the other inforniation. Our opinion on the financial statements does not Cover the other infonnation and, except to the extent otherwise explicitly stated in our report, we do not express any fom of assuranc¢ conclusion thcreon. In Connpxtion with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in thc audit or otlierwise appears to be materially misstated. If w¢ identify such material inconsistencies or apparent material misstatements, we are required to detemine whether there is a material misstatement in the financial statements or a material misstatement of the other inforniation. If, based on the work we have perfom]ed, we conclude that there is a material misstatement of this other infonnation, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prcribed by the Companies Act 2006 In our opinion, bascd on the work undertaken in the course of the audit: the inforniation given in the trustees, report for the financial year for which the financial statements are prepared is con51Stent with the financial statements; and the trustees, report has been prepared in accordanc¢ with applicable legal requirements. Matters on Ivhich we &re required to report by exeoption In th¢ light of ihc knowlcdgc and undcrstanding of lh¢ company and its environment obtsined in the ¢ours¢ of the audit, we have not identified material misstatements in the Irustees, report. We have noihing 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: adequate accounting records have not been kept, or returns adequate for our audit have not been rec¢ived from branches not visited by us; or the financial statements are not in agr¢ement with the accounting records and returns; or certain disclosures of trustees, remuneration spc¢ified by law are not made; or we have not received 811 the infornialion and explanations we require for our audit: or the trustees were not entitled to prepare the financial statements in accordance with the small companies, regime and take advantag¢ of the small companies. exemption in preparing the trustees. report and from the requirement to prepare a strategic report.
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD li INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2023 Respolls5btiitiu of trustees As explained more fully in the trustees, responsibilities statement, th¢ trustccs, (who ar¢ also the directors for the purposes of company law), are responsible for the preparation of the financial statements and for bein8 satisfied that they give a true and fair view, and for such internal Control as the trustees detennine 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, th¢ trustees are responsibl¢ for assessing thc charitable company's ability to continue as a going concem, disclosing, as applicable, matters rclated to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to ceose operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the fiDancial statements Our objectives are to obtain re&8onable assurance about whether the financial statements as a whole ar¢ frce from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable &5surance is 8 high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misststement when it exists. Mibsiatemenls can arise from fraud or error and are considured 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. Extent to which the audit was eapable of detecting irregularilies, including fraud Irregularities, includin8 fraud, are instances of non-compliance with laws and regulations. We identified and asscssed the risks of material misstatemenl of the financial statements from irregularities. whether due to fraud or crror, and discussed these between our audit team mcmbers. We then designed and perfonned audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the detennination of material amounts and disclosures in the financial statements. We assessed the required Compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 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 might be fundamental to the charily's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, we considered the following: the nature of the industy and sector, control environment and business perfornlance including the design of the remuneration policies. bonus levels and perforniance targets. results of our enquiries of management about their own identification and assessment of the risks of irr¢gularities' 12
EWHILL FIRST STFPS CHILDCARE CENTRE LTD IIWEPENDENT AUDITOR'S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2023 any matters w¢ identified having obtained and reviewed documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether management were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud; the internal ¢ontrols estsblished to mitigate risks of fraud or non-compliance with laws and regulations; the mattcrs discussed among the audit engagement team including significant component audit teams and relevant internal specialists, including tax and valuations specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. 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 thougyh we have properly planned and perfom]ed our audit in a¢cordanc¢ with auditing standards. In addition. as with any audit, there remained a higher risk of non- dctcction of irregularities, as these may involve collusion, forgery. intentlonal omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. A further description of our rcspon5ibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibililies. This description fomis part of our Auditor's Report. We also communicated rclevant identified laws and regulations and potential fraud risks to all audit team members and rcmaincd alert to any indications of fraud ornon-compliance with laws and rcgulations throughout the audit. As part of an audit in accordancc with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misslatement of the financial statements, whether due to fraud or crror, design and perforn] audit procedures responsive to those risks, and obtain audit evidence Ihat is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions. misrepresentations, or the overridc of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Evaluate the appropriateness of accounting policies used and the reasonablencss of accounting estimates and related dis¢losur¢s made by the trustees. We communicate with those charged with governance regarding. among other matters, the planned scope and timing of the audit and significant audit findings, Including any significant deficiencies in internal control that we identify during our audit. 13
NFWHILL FIRST STEPS CHILDCARE CENTRE LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2023 Use of our report This rcport is made solely to the ¢harity'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 charity's members those matters wc are requir¢d to state to them in an auditor's report and for no other purpose. To the fullest extent pern]itted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have fonned. Hughes House 617 Church Street Bgnbridge BT32 4AA 18 December 2023 Paul Cummings ( nior Statutory Auditor) For and on behal of JoDes Pet¢r Chartered Accountants and StAtutory Auditor8 14
NFWHILL FIRST STEPS CHILDCARE CENTRE LTD STATEMENT OF FINANCIAL ACTIvrrIES INCLUDING INCOME AND EXPENDITURE ACCOUN FOR THE YEAR ENDED 31 MARCH 2023 Unrestrleted Funds Restricted Funds 31 March 2023 31 March 2022 Note Incom¢ Jncomefrom charilable aclivilies.. Grants and contracts 3a 22,032 29,578 51,610 82,118 Activities for Benerating funds 3b 371.524 371,524 232,338 Other income Tot41 income 42 ExpendSture Fxpenditurc on charitable activilics Totlll expendlture 41 Net Incomd(cxpcndilurc) and net movement in funds for the yCAr (22,237) (7,724) (29,961) 14,809 ReeonciliAtion of funds Total fundg brought fornrd Total funds carrlcd forward The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities. The notes on pages 17 to 23 form aD integral part of these financial ststements. 15
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD STATEMENT OF FINANCIAL POSITIOIY AS AT 31 IvARcH 2023 Note 3110312023 3110312022 Fixcd assets 484,160 495,515 Current assets Debtors Cash at bank and in hand 10 21,733 6,337 129 717 136,054 107,332 Credltors . Amounts falling due within one year 11 Net current assets/(liabllitles) 89,870 119,620 Creditors: Amounts fallin8 due after mor¢ than one year 12 Net a&gets The funds of th¢ charity: Unrestricted funds 14 564,965 587,202 R¢strlcted funds 14 Total charity funds These financial statements have been prepared in accordance with the provisions applicabl¢ to companies subject to the small companies regime. The financial statements were approved and authorised for issue by the board of trustees on 18 December 2023 and signed on its behalf by:_ C. Fittsimons J. McGeown - Trustee Registration Number: N1055960 The llotes on pages 17 to 23 form an integral part of these financial statements. 16
NEWHILL FIRST STFPS CHILDCARE CENTRE LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARENDED 31 MARCH 2023 ACCOUNTING POLICIES Thc principal accounting policies are summarised below. The accounting policies have been applied onsistently throughout the year and the preceding year. Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordancc with the Financial Reporting Standard applicable in the UK and Republie of Ireland (Charities SORP (fRS 102)), the Financial Reporting standard applicable in th¢ UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in levant accounting policy notes. 1.2 Going concern The charity had free reserves of £80,805 and net assets of £564,965 at the year end, The Trustees have considered the potential financial effects from th¢ changing economic environment for the upcoming 12 months, including the potential impact on ongoing funding and are taking mitigating actions. They have considered financial projections for the pcriod to 31 December 2024 and have a reasonable expectalion that the charity has adequate resources to ensure that the charity will conlinuc to operate. The trustees believ¢ that there are no material unccrtainties about the ability of thc charity to continue in operalional cxistence and the financial statLments havc been prepared on a going concern basis. 1.3 Public benefit entity Ncwhill li irst Steps Childcare Centre Ltd meels the definition of a public benefit entity under FRS 102. 1.4 Incoming resoure Income is recognised whcn the charity h&s cntitlement to the funds, any perforniance conditions attached to the itcm(s) of income have been met, it is probable that the income will be received and the amount can be mcasured reliably. Income from govemment and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any perforniance Conditions attached to the grants have been meL it is probable that the income will be received and the amount can be measured reliably and is not deferred. Donated services or facilities are rexognised as income when the charity has control over the item, any conditions associated with thc donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. A corresponding amount is then recognised in expenditure in the period of receipt. 17
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Charitable expenditure comprises those costs incurred by the Charity in th¢ delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to su¢h activities and those costs of an indirect nature neccssary to support them. 1.6 Fund accounting (i) Unrestricted fvnds - the unrestricted fund is under th¢ control of the Trustees, to be used in the furtherance of the general objectives of the company. (li) Restricted funds - the restricted funds represent incomelgrants received where the donor has imposed restrictions on the use of the funds which are legally binding on the Trustees. The ost of raising and administering such funds are char8ed against the specific fund, Tangible fIXL assets Tangible fixed assets are stated at cost less accumulated deprcciation and accumulated impainnent. Cost includes cost directly altributable to makin8 assel capable of operating as intended. DepreclAtlon Tangible fixed assets are stated at cost less accumulated depreciation. Dcpr¢¢iation is provided at rates calculated to write off the cost less residual value of each asset on a straight line basi5 over its expccted useful life 85 follows: Long Leasehold property Fixtures & fittin8S 20/0 Straight line 200/0 Straight line 1.9. Finan¢ial instruments The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially rccognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 1.1 O Defined eontribution pensfion schemes The pension costs charged in the financial statemenls represent the contribution payable by the company during the year. LEGAL STATUS OF THE CHAIUTY Newhill First Steps Childcare Centre Ltd is a company limited by guarantee and accordingly does not have a share Gapital. Every rnember of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member. With effect from 4 June 2020 Upper Springfield Development Trust Ltd became the sole member of the company. 18
NF.WHILL FIRST STEPS CHILDCARE CENTRE LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 INCOME Unrestricted Restricted 3110312023 3110312022 Funds Funds Total Funds Total Funds 3a. Income from grants and contracts Early Years Pathway Fund Belfast Health & Social Care Trust West Bclfast Partnership Board Belfast Met Education Authority Big Loltery IISBC, Bclfast City Council 29,578 29.578 20,032 2,000 29,578 17,927 1,000 5.626 12,211 9,988 2,500 20.032 2,000 Income from grants and contracts was £51,610 (2022: £82,118) of which £29,578 was restricted (2022: £55,354) and £22,032 was unrestricted (2022: £26,764). Unrestricted Restricted 3110312023 3110312022 Funds Funds Total Funds Total Funds 3b. Income from gen¢rAtlnR fuDd$ Gencrated funds 371524 371524 232 338 In¢orne from generated funds was £371,524 (2022: £232,338) all of which was unrestricted. Unrestrlcted Restrleted 3110312023 3110312022 Funds Funds Total Funds Total Funds 3¢. Other ineome Coronavirus Job Retention Scheme Community Recovery Support Fund Covid-19 Grant Early Years Covid Relief Support Fund Insurance Claim 1,002 50,000 26,890 Therc was no other income during the year. In 2022 other income was £1 l E,892 of which £11,309 was restricted and £1 00,583 was unrestricted. 19
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 EXPENDITURE Unrestricted Restricted 3110312023 3110312022 Funds Funds Total Funds Total Funds Charltable activities Staff costs Premises costs Depreciation Other operating costs Programme Delivery Governance costs (see note 5) 302,685 43,566 11,355 3,078 49,873 29,578 7,724 332,263 51,290 11,355 3,078 49,873 278,669 57,564 2,032 57,131 02 Expenditure on charitable activities was £453,095 (2022: £411,539) of which £37,302 (2022: £58,939) was restricted and £415,793 (2022: £352,600) was unrestricted. ANALYSIS OF GOVERNAIYCE COSTS Unrestrleted Rebtrlcted 3110312023 3110312022 Funds Funds Tot41 Funds Total Funds Accounlancy/AudiVConsultancy Legal and professional fees 4,660 4,660 4,603 425 NET INCOMINGIOUTGOING SOURCES FOR THF YEAR 3110312023 3110312022 This is stated after charging: DepCIall0n Auditors, remuneration 11,355 11,115 ANALYSIS OF STAFF COSTS AND TRUSTEE REMUNERATION 3110312023 3110312022 Salaries and wages Social security costs 318,645 268,017 No employee had employee benefits in excess of £30,000 (2022: Nil). During the year, no trustees received any remuneration (2022: Nil) or any Benefits in Kind (2022: Nil). 20
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 STAFF NUMBERS The average number of full-time equivalent employees during the year were as follows:_ 3110312023 3110312022 Number of staff TANGIBLE FIXED ASSETS Long Leasehold Fixtures, fittings Property & equipment Total At l April 2022 Additions At 31 March 2023 500,000 6,776 506,776 Depreciation At l April 2022 Charged during the year At 31 March 2023 10,000 1,261 11,261 616 Net book value At 31 March 2023 At 31 March 2022 I'he bases by which depreciation is calculated are stated in note 1.8. Thc long leasehold properly is stated at fair value in accordance with Royal Institution of Chartered Surveyors (RICS) ' Rcd Book Global Standards. Thc property was valued at 31 March 2022 by Osborne King, Commercial Property Consultants. Tho trustees arc satisfied that the valuation of £500,000 is still appropriate at 31 March 2023. 10. DEBTORS 3110312023 3110312022 Prepayments and Accrued income CREDITORS: Amounts falling due within one year 3110312023 31103ll022 Loan- Community Finance Ireland Accruals Other Creditors 12,000 4,368 12,000 3,500 934 12. CREDITORS: Amounts falling due after more than one year 3110312023 3110312022 Loan - Community Finance Ireland The loan from Community Finance Ireland is secured by a first legal charge over the property at 265 Old Whiterock Road, Belfast. 21
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 13. FINANCIAL INSTRUMEIYTS All financial instruments have been recorded at their transaction price. No other financial instruments exist other than those included in debtors and creditors. 14. ANALYSIS OF CHARITABLE FUNDS Balance at l April 2022 Incoming Resourc¢s Outgolng Resources Balance at 31 March 2023 Total Unrestricted Funds Total Restricted Funds Total Funds 587,202 393,556 415.793 564,965 Balance at l January 2021 Incoming Resources Outgoing Resources Balance at 31 March 2022 Total Unrestricted Funds Total Restricted funds Total Funds 580.117 359,685 352,600 587,202 15. ANALYSIS OF NET ASSETS BETWEFN FUNDS Analysis of net assets Unrestricted Funds Restricted Funds 31 March 2023 Total Fixed assets Net assets/(liabilities) 484,160 484,160 Analysis of net assets- previous year Unrestricted Funds Restricted Funds 31 March 2022 Totfdl Fixed assets Net assets/(liabilities) 495,515 495,515 22
NFWHILL FIRST STEPS CHILDCARE CENTRE LTD NOTES TO THE FINANCIAL STATEENTs FOR THE YEAR EI NDED 31 MARCH 2023 16. CORPORATION 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 Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 17. CONTINGENT LIABILITY A contingent liability exists to repay grants rcceived should certain conditions not be fulfilled by the Gharitable company. In the opinion of the trustees the ternis of the letters of offcr hav¢ been, or will be, complied with and no liability is expected to occur. 18. RELATED PARTY TRANSACTIONS Upper Springfield Development Trust Limited (USDT) is the 501e member and is considered to be the parenl company of Newhill First Steps Childcare Ccntre Ltd. Management charges paid to USDT amounted to £5,200 (2022: £7,020). 23