CharRty Number: NIC 106073 Company Number: Nl 055960 NE ILL tRST STE S CHILDCARE ENI'RE LTD Atom Limited b Gu TR ' REPOR .IIDI C. DIRE TOR ND FINANCIAI,ST An
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD REPORT OF THE DIRECTORS AND FIIYA]YCIAL STATEMENTS YEAR ENDED 31 MARCH 2023 TABLE OF CONTENTS PY4ge Company Infom]ation Trustees. Annual Report (Rncluding the Directors, report) Independent Auditor's R¢port to the members 10-14 ststement of Financial Aclivities (including income and cxpenditure account) 15 Statement of Financial Position 16 Notes to the Financial Statements 17-23
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD COMPANY INFORMATION Compydny registration number N.1. 055960 Charity r¢gistrAtion number NIC 106073 Directors and trustees Cathy Fitzsimons John McG¢own 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 Joncs Pelcrs Regislered Auditors Chartered Accountants 6 Church Street Banbridge BT32 4AA Bankers AIB 26 University Road Belfast BT7 INH Solicitors Edwards & Co. Solicitors 28 Hill Street Belfast 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 the ycar ending 31 March 2023 The trustees are pleased to psent 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 meet the requirements for a directors, report and accounts for Companies Act purposes. The financial statements comply with current statutory requirements including the Charities Act (Northern Ireland) 2008 amended by the Chariti¢s Act (Northern Ireland) 2013. compani Act 2006, the Charity's Memorandum and Articles of Association, A¢¢ounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their aLcounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ir¢land (FRS 102), Principal Actlvity First Step's objective is to encourage the provision of scrvices, training, recreation and other leisure time occupation for children aged 0-8 years within N. Ireland. Those who require such services by reason of their youth, povety, disablement or social and economic circumslanccs and which will improve the conditions of the young peoples lives by providin8 for their mental and spiritual wellbeing. Statement ofpubli¢ Bcnefit I'h¢ charity's purpose is to: advance th¢ education, development, physical and emotional wellbein8 of children. to relieve those in need by reason of their youih, providing facilities for leisure-time occupation, so that their conditions of life may bc improved. To relleve and prevent poverty The charity does thi5 by providing affordable daycare to pre-school children within the Upper Springficld / Whiterock area of West Bclfast, an area of high muliiple deprivation. The charity provides high quality facllities which educate 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 dir¢¢t benefits which flow from these purposes are th¢ 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 services 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 ora high quality daycare facility for pre-school children which meets statutory requirements.
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANfAL REPORT NCLUDING THE DIRECTORS, REPOR FOR THE YEAR ENDED 31 MARCH 2023 Achievements and Performance Service Provision In the year covered by this report the centr¢ continued to have an ongoing, positive impact in a wide range of are&s which met all our charitable purposes. Childcare First Steps core function is the provision of quality early years provision through a SOCTal economy model. This susIAinable delivery model compliments the Department of Education's vision: 'every young person achieving to his or her full potential at each 5tagc of his or her development., Ther¢ is an extensive body of research pointing to the rolc early education can play in promoting children's dev¢lopm¢nt. Two points cmerge consistently from the evidence. firstly, children at greater risk of starting school at a disadvantage have most to gain froin 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 developed in the early years provide the platfom) for later learning. while early deficits can have lasting consequences for later inequality and social mobility. We also know that early interventions can have large and lasting effects on children's development. As noted, the project's catchment area is in some of NI'8 poorcst areas which means people experience social, educational and health dcprivation from their earlicst days. Iducational disadvantage is a complex and deeply- rooted issue. Howcver, an educational disadvantage means 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 environm¢ntal factors. A social disadvantage both limits access to educational opportunities and reduces the ability of childr¢n lo b¢n¢fit from the schooling they do get. Children growing up in poverty and disadvanta8cd in our designated SOAS are l¢ss likely to do well at school, This feeds into disadvantages in latcr life and in turn affects their children. To breakthis 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 care matters, not only because it affects the everyday experiences of our children but because the benefits are only realised if the provision used is high quality. Our different early years specialilies support quality learning by providing activitics and materials that children find engaging. By facilitating learning, supplying a developmentally appropriate cnvironment, interesting materials, adequate time to explore, play and intcract; children find learning eY and fun. After Sehool Projcct 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 wonders 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.
NEWHtLL FIRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANNUAL REPORT NCLUDING THE DIRECTORS, REPOR FOR THE YEAR ENDED 31 MARCH 2023 Th¢ projects offer different support: l. Our children and young people are cared for in a safe and secure play and recreational environment providin&y children with th¢ safe space that they need while allowing parents some time for work or other a¢livities. 2. Mixed environments where children and young people can play, do homework and are supported in all activities. This approach regards after school care not just as a safe haven, but also as providing developmental support for our children and their families. Social, sporting and cultural activities are part of the daily activities. Impact: Outputs and Outcomes First Steps provides a wide range of services that enables community development to flourish through our own work and with our community partners. Day Ca First Steps Childcare Registration BHSCT sponsored day care Summer Scheme 68 daycare placements 72 childcare places 1.045 places 24 places Strueture, Governallce and Management Governing Document First Steps is a company regibtered in N. Ireland, which waq incorporated under the Companies (Northern Ireland) Order 1986 on 21 July 2005. The company is govcrned by a Memorandum and Article5 of Association. The company's objc¢tives are charitable in nature and it has eslablishcd charitable slatus. The company's business is managed by the directorsllrustees who arc considered to be the members ofthe company. Trust¢e5' Appointment and Training 'rhe trustees recruit and select new trustecs as set out in the governing document. The Board recruits new trustees with regards to skills, gaps and the n¢w members, potential to make a real contribution to the charity's overall governance. The Board predicate trustees, appointments on our organisational values and make new memb¢rs aware of their legal responsibilities under charity and Company law. Our Members, induction pack outlines our Articles of Association, board structure, organisational structure, decision rnaking processes, and our overview of finances. Our formal induction provides new board members with the inforniation and training they need to take up their appointment as effectively as possible. Finance, Pay and RemuDerlltion 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 remuneration during the year.
NEWHtLL FIRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANNUAL REPORT NCLUDING THE DIRECTORS, REPOR FOR THF YEAR ENDED 31 MARCH 2023 Organisational $trueture The Board administers the charity and nornially 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 managye the charity's day to day operalions. To ensure effective daily management the manager has delegated authority within tems of delegation through the Board's approval for operational matters including finance, employment and direct charitable activities. Rlsk Management Our approach to th¢ management of risk is infonned by the need to ensur¢ that the risks inherent in the pursuit of our objectives arc understood, will be manageable if realised, and that appropriate mitigation measures are planned or in place. Responsibility for the management of specific risks is carried by named individuals and groups, but the highest level risks, those that have a direct bearing on the Newhill First Steps Childcare Centre l.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 management strategy that comprises: An annual review ofthe principal risk and uncertainties that the charity takes; The establishment of policies, systems and procedures to anticipate risks in the annual review; and The implemcnlation of procedures designed to minimise or manage any potential impact on the charity should those issues matcrialise. Reputatlonydl Risks: Thc Tnjstees are conscious of the importance of its reputation as a well run organisation delivering public benefit and have undertaken steps to ensure Ncwhill first Steps Childcare Centre Ltd governancc and managemcnt structures arc robust and giv¢ confidence to all stakeholdcrs and operate in lin¢ with our values. Financlal Risks: The organisation exposes itsclf to a variety of financial risks. Measures to rnitigate this risk includc strong budgctary management and cost control and proactive negotiations with tenants and key stakcholders. Health and Safety Risks: The Trustees recognise the importance of safety in all of our services. Newhill First Steps Childcare Centre Ltd implements robust systems and structures to ¢nsur¢ all health and safety regulations are complied with. Legal and Regulatory Risks: The charity is required to comply with a wider range of legal and regulatory obligations. Policies 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. Insurable Risks: The organisation incurs exposure to employer, public and property damage liability by virtue of thc nature of its operations. While a strong emphasis is placed on health and safety and risk rnanagement 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 perforn] below the expectations of our funders as set out in their service level agreements. The trustees monitor perforn]ance on an ongoing basis and have implcmented annual service audit programmes as well as staff and service user surveys to provide them with assurance in this regard.
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANNUAL REPORT NCLUDING THE DIRECTORS, REPORT FOR THE YEAR ENDED 31 MARCH 2023 Flnaneial Revlew and Results for the Year Financial Review Incoming resources have decreased from £426,348 in the year ended 31 March 2022 to £423,134 in thc year ended 31 March 2023. Resources expended on charitable aclivities have increased from £411,539 to £453,095 in the year ended 31 March 2023. As a result, net outgoin&? 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 Statement of Financial Activities on page 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 expenditure on upcoming programmes and redundancy payments. The trustees have considered future financial projections and future funding requirements and have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and for this reason they continue to adopt the going concern bases in preparing the financial statcments. Further details regarding the adoption of the going conccrn b&8is can be found in the accounting policies. Events after the Balance Sheet Date There were no significant events affe¢ting the company after the year end. Plans for the Future The company aims to advance discussions with other local childcarc care providers with re8ards to mergers and rationalisation of services. Trustees, Responslbllfity Statement The trust¢¢s, who are also directors for the purposes of company law, are responsible for preparing thc 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 charity trustccs 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 ststements, the trustees are required to: select suitable accounting policies 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 concem basis unless it is inappropriate to presume that the charity will continue in business.
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD TRUSTEES, ANNUAL REPORT NCLUDING THE DIRECTORS, REPOR FOR THE YEARENDED 31 MARCH 2023 The trustees are responsible for keeping adequate accounting re¢ords that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements cornply with the Companie5 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 irregularities. Auditor Each of the persons who is a trustee at the date of approval of this report confims that: so far as they are aware, there is no relevant audit information of which th¢ charity's auditor is unaware. and they have taken all steps that they ought to hav¢ taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The auditor is deemed to have been reappointed in accordance with Section 487 of the Companies A¢t 2006. Small company provisions This report has been pr¢pared 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: . McGcoiYn Trustee
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2023 Opinion We have audited the financial statements of Newhill F irst Steps Childcare Centre Ltd (the '¢harity') for th¢ year ended 31 March 2023 which comprise the statement of financial activities (including income and expenditure account), statement of financial position and the related 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 Kin8dom 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 ststements: give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year thcn ended; have bcen properly prepared in accordance with Unitcd Kingdom Generally Accepted Accountin8 Practice; have been prepared in accordance with the rcquirements of the Companies Act 2006. Bayis for opinlon We ¢onducted our audit in accordance wilh International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilitics under those standards are further described in the auditor's r¢sponsibiliti¢s for the audit of the financial statcments section of our report. We are indepcndent of the charitable company in accordance with the ethical reqU1MentS that are relevant to our audit of the financial statements in the UK, including the14RC's Ithical Standard, and we have fulfill¢d our oth¢r ethical responsibilitics in accordance with these requir¢ments. We believe that the audit evidenLe we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusion5 relating to going concern In auditing the financial statements, we have concluded that the trustees. use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfonned, we have not identified any material uncertainties relating to events or onditions 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. 10
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2023 Other information The other inforniation comprises the infonrAation included in the annual report. other than the financial statements and our auditor's report thereon. The trustees are responsible 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 form of assurance conclusion thcreon. In connection with our audit of th¢ financial statements, our responsibility is to read the other infonnation and, in doing so, consider whether the other information is materially inconsistent with th¢ financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If wc identify such material inconsistencies or apparent material misstatements, we are required to dct¢nnine whether there is a material misstat¢mcnt in the financial statements or a material misstatement of the other inforniation. If, based on the work we have pcrfornied, we conclude that there is a material misstatement of this other infonnation, we are required to rcport that fact. We have nothing to report in this regard. Opinions on other mlltters prescribed by the Companies Act 2006 In our opinion, based on the work undertsken in the course of the audit: the infonnation given in the trustees, report for the financial year for which the financial statements are prepared is consistent with the finuncial statements; and th¢ trustees, report has been prcpared in accordanc¢ with applicable legal requirements. Matters on which we Are required to report by exception In thc light of the knowlcdge and understanding ofihe company and its environmenl obtained in the cours¢ of the audit, we have not identified material misstatcments in the trustees, report. Wc 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: adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees, remuneration specified by law are not made; or we have not r¢¢¢ived all the infomation and explanations we require for our audit; or the trustees were not entitled to prepare the financial statements in accordance with the small companies, regim¢ and take advantagc of the small companies, exemption in preparing the trustees, report and from the requirement to prepare & strategic report.
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD INDEPENDENT AUDITOR'S REPORT TO THE METrIBERS FOR THE YEAR ENDED 31 MARCH 2023 Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustccs. (who a also the directors for the purposes of company law), are responsible for the preparation of the financial statements and for b¢in8 satisfied that th¢y give a truc and fair view, and for such internal control as the trustees detemine 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 stat¢ments, th¢ trustees are responsible for assessing thc charitable company's abilily to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the truste¢s either intend to liquidate the charitable company or to cease operations, or have no realistic alternativ¢ but to do so. Auditor's responslbilities for the audit of the financial gtatements Our objectives are to obtain re&sonable assurance about whether the financial statements as a wholc are frce from material rnisstatement, 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. Misslatements can arise from fraud or error and are considered material if, individually or in the aggregatc, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial ststements. Extent to which the Audit was capable of detccting Srrcgularilles, Includlng fraud Irregularities, including fraud, are instanccs of non-compliancc with laws and regulations. We identified and asscssed the risks of material mi5Statement 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. W¢ assessed the required compliance with th¢se 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 dircct effect on the financial statements but compliance with which might be fundamental to the charity'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 indu5ty and sector, control environment and business perfonnance including the design of the remuneration policies, bonus levels and perforn]ance targets. results of our enquiries of management about their own identification and assessment of the risks of irregularities. 12
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 MARCH 2023 any matters we identifjed 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 int¢rn&l Controls established to mitigate risks of fraud or nonwcompliance with laws and regulations; the mattcrs discussed among the audit engagement team including significant component audit teams and relcvant intcrnal specialists, including tu 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 d¢tected some material misstatements in the financial statements, even thougih we have properly planned 2nd perfornjed our audit in accordance with auditing standards. In addition, as with any audit, there remained a higher risk of non- detection of irregularitie5, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of intemal controls. Wc are not responsible for preventing non-compliance and cannot be expected to delect non.compliance with all laws and regulations. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forn]s part of our Auditor's Report. We also communicated rclevant identified laws and regulations and potential fraud risks to all audit team members and remaincd alert to any indications of fraud or non-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 misstaternent of the financial statements, whether duc to fraud or error, design and perforni audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not dctccting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involv¢ 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 disclosures 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
NEWHILL FIRST STEPS CHILDCARE CEIYTRE LTD MEMBERS INDEPENDENT AUDITOR'S REPORT TO T FOR THE YEAR ENDED 31 IIqARCH 2023 Use of our report This report is made solely to the charity'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 ihe charity, s members those matters we are r¢quir¢d to state to them in an auditor, s report and for no other purpose. To th¢ fullcst extent perniitted by law, we do not accept or assum¢ responsibility to anyone other than thc charity and the harity's members as a body, for our audit work, for this report, or for the opinions we have fonned. Hughes House 617 Church Street Banbridge BT32 4AA 18 December 2023 Paul Cummings { nior Statutory Auditor) For and on behal of Jones Poters Chartered Accountants 2nd Statutory Auditors 14
NFWHILL FIRST STEPS CHILDCARE CENTRE LTD STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUN FOR THE YEAR ENDED 31 MARCH 2023 Unrestrleted Funds Restrlcted Funds 31 March 2023 31 Mareb 2022 Note Jneome Jxcomefrom charilable activilies.. Grants and contracts 22,032 29,578 51,610 82,118 Activiti¢s for 8en¢rating funds 3b 371,524 371,524 232,338 Other income 3e Total income 42 42 Expenditure F.xpenditurc on charitable activilics Total expcndlturc Net iDcomcl{expenditurc) and not movement in fund5 for the y¢ar (22,237) (7,724) (29,961) 14,809 RcconciliAtion of funds Total funds brougbt forward TolAI fund5 carried 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 an integral part of these financial statements. 15
NEWHILL FIRST STEPS CHILDCARE CEINTRE LTD STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2023 Note 3110312023 3110312022 Fixed assets 484,160 495,515 Current assets Debtors Cash at bank and in hand 10 21,733 6,337 129 136,054 107,332 Creditors Amounts fallin8 due within one year 11 Net current assetsl(liabllitles) 89,870 119,620 Creditors: Amounts falling due after more than one year Net assets 12 065 The funds of the Charity: Unrestricted funds 14 564,965 587,202 Restricted funds 14 Total charity funds These financial statements have been prepared in accordance with the provisions applicable 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. Fitssimons J. McGeown - Trustec Registration Number: N105S960 The notes on pages 17 to 23 form an integral part of these financial statements. 16
NEWHILL FtRST STEPS CHILDCARE CENTRE LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 ACCOUNTING POLICIES The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding ycar. 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 Republic of Ireland (Charities SORP (FRS 102)), the Financial Reporting standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Assets and liabilities are initially reeognised at historical cost or transaction value unless otherwise stated in relevant accounting policy notes. 1.2 Going conecrn Th¢ Charity had free reserves of £80,805 and net assets of £S64,965 at the year end. The Trustees have considered the potential financial effects from the changing economic environment for the upcoming 12 months, including the potential impact on ongoing funding and are takin8 mitigating actions. They have considered financial projections for the period to 31 December 2024 and have a reasonable expectation that the charity has adequate resources to ensure that the charity will conlinue to operate. Thc trustees believc that there are no material uncertainties about the ability of thc charity to continue in operational cxistence and the financial statements havc been prepared on a going concern basis. Public bcnefit entity Ncwhill First Steps Childcare Centre Ltd meels the definition of a publi¢ benefit cntity under FRS 102. Incorning resources Income is recognised when the charity has entitlement to the funds, any perfonnance conditions attached to the iÉcm(s) of income have been met, it is probable that ihe income will be received and the amount can bc mcasured reliably. Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any perfonnance conditions attached to the grants have been me( it is probable that th¢ income will be received and the amount can be measured reliably and is not deferred. Donated services or facilitics are recognised 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 1.5 Resources expended Expenditure is recognised on an accruals basis as a liability is incurr¢d. Expenditure includes any VAT which cannot be fully rc¢overed, and is reported as part of the expenditure to which it relates. Charitable expenditure comprises those costs incurred by the charity in thc delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature nec¢ssary to support them. 1.6 Fund accounting (i) Unrestricted funds - the unrestricted fund is under th¢ control of the Trustees, to be used in the furtherance of the general objectives of th¢ company. Restricted funds - the restricted funds represent incomelgranls received where the donor has imposed restrictions on the use of the funds which are legyully binding on the Trustees. 1.he cost of raising and administering such funds ar¢ charged against the specifjc fund. (li) Tangible fixed assets Tangible fixed assets are stated at cost less accumulated depr¢ciation and accumulated impairnient. Cost includes c05t directly attributable to making asset capable of operating as intended. 1.8 DepreciatloD Tangible fixed assets are stated at cost less accumulated depreciation. D¢prcciation is provided at rates calculated to write off the cost less residual value of each asset on a straiBht line basis over its expccted useful life as follows: Long Leasehold property Fixtures & fittings 2 % Straight line 200/0 Straight line 1.9, Flnanclal instruments The trust only has financial assets and financial liabiliti¢s 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 exccption of bank loans which are subsequently measured at amortised cost using the effective interest method, l. l O Defined contribution pension schemes The pension Costs charged in the financial Statements represent the contribution payable by the company during th¢ year. LEGAL STATUS OF TIIE CHARITY Newhill First Steps Childcarc Centre Ltd is a company limited by guarantee and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £ I 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
NEWHILL 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 Lottery 14SBC Belfast 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 Incomc 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 Restrlcted 3110312023 3110312022 Funds Funds TotAI Funds Total Funds 3b. Income from gcneratlng funds Gcncraled funds 371524 Income from generated funds was £371,524 (2022: £232,338) all of which was unrestricted. Unrestrleted Restricted 3110312023 3110312022 FuDds Funds Total Fund8 Total Funds 3¢. Other income 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 There was no other income during the year. In 2022 other income was £l11.892 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 1CH 2023 EXPENDITURE Unrestriet¢d Restricted 3110312023 3110312022 Funds Funds Total Funds Tot81 Funds Charitable 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 11,115 2,032 57,131 Expenditure on charitable aclivities 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 GOVERNANCE COSTS Unrestricted Restricted 3110312023 3110312022 Funds Funds TotAI Funds Total Funds AccounlancylAuditlConsulthncy Legal and professional fees 4,660 576 4,660 576 4,603 425 NET IIYCOMINGIOUTGOING SOURCES FOR THF. YEAR 3110312023 3110312022 This is stated after charging: Depreciation 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:. 31103r2023 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 11,261 000 Net book value At 31 March 2023 At 31 March 2022 q'he bases by which depreciation is calculated are stated in note 1.8, The long leasehold properly is Stated at fair value in accordance with Royal Institution of Chartered Surveyors (RICS) 'Rcd Book Global Standards. Th¢ property was valued at 31 March 2022 by Osborne King, Commercial Property Consultants. The trustees arc satisfied that the valuation of £500,000 is still approprtate at 31 March 2023. 10. DEBTORS 3110312023 3110312022 Prepayments and Accrued income CREDITORS: Amounts falling due wÈthin one year 3110312023 3110312022 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 INSTRUMENTS 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 Bvdlance at l April 2022 Incoming Resourccs Outgoing Resources BalaDce 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 Incomln Resourccy 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 BETWEEN FUNDS Analysis of net assets Unrestricted Funds Restrlcted Funds 31 March 2023 Total Fixed assets Net assetsl(liabilities) 484,160 484,160 Analysis of net assets- previous year Unrestricted Funds Restricted Funds 31 March 2022 Total Fixed assets Net assetsl(liabilities) 495,515 495,515 22
NEWHILL FIRST STEPS CHILDCARE CENTRE LTD NOTES TO THE FINANCIAL STATETs FOR THE YEAR ENDED 31 MARCH 2023 16. CORPORATION TAXATION The charity is exempt from tax on incom¢ 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. I7. CONTINGENT LIABILITY A conlingent liability cxists to repay b7rants received should certain conditions not be fulfilled by the charitable company. In the opinion of the trustees thc ternis of the letters of offcr have been, or will be, complied with and no liability is expectcd to occur. 18. RELATED PARTY TRANSACTIONS Upper Springfield DevelopmentTrust Limited (USDT) is the sole membcr and is considered to be the parenl company of Ncwhill First Steps Childcare Ccntre Ltd. Management charges paid to USDT amounted to £5,200 (2022: £7,020). 23