Charity Registration No. NIC101176
Company Registration No. NI043041 (Northern Ireland)
EMPLOYERS FOR CHILDCARE
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
EMPLOYERS FOR CHILDCARE
LEGAL AND ADMINISTRATIVE INFORMATION
Directors
Mrs J Kennedy
Mrs S McCarry
Prof M McHugh OBE
Ms A Mervyn
Mrs L Mulholland
Mr J O'Neill
Mr M Stevenson
Secretary
Ms M Marin OBE
Charity number
NIC101176
Company number
NI043041
Principal address
11 Blaris Industrial Estate
11 Altona Road
Lisburn
Co Antrim
BT27 5QB
Registered office
11 Blaris Industrial Estate
11 Altona Road
Lisburn
Co Antrim
BT27 5QB
Auditor
GMcG LISBURN
Century House
40 Crescent Business Park
Lisburn
BT28 2GN
Bankers
Danske Bank
45-48 High Street
Portadown
Craigavon
Co Armagh
BT62 1LB
Solicitors
Edwards & Co
28 Hill Street
Belfast
BT1 2LA
Worthingtons
24-38 Gordon Street
Belfast
BT1 2LG
EMPLOYERS FOR CHILDCARE
CONTENTS
Page
Directors' report
1 - 3
Independent auditor's report
4 - 9
Group Statement of financial activities
10
Group Statement of financial position
11
Company Statement of financial postion
12
Group Statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 29
EMPLOYERS FOR CHILDCARE
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present their annual report and financial statements for the year ended 31 May 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)" (effective 1 January 2019).

Objectives and activities

Employers For Childcare is established to make it easier for parents with dependent children to get into work and to stay in work. We do this by addressing childcare as an economic and a labour market issue.

 

The Charity's purposes, as set out in our governing document, are to advance education, to prevent and relieve poverty and to relieve those in need by reason of financial hardship or other disadvantage by:

 

These purposes are intended to benefit families, particularly working parents with dependent children, and those parents who are seeking to get back into work. More broadly, the public at large benefits through the economic development generated through broadening the pool of potential employees within the workforce, lifting families out of poverty and facilitating children's access to high quality early years education and childcare.

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

Achievements and performance

Our charity works directly with parents through the Family Benefits Advice Service, and for parents through our research, policy, and lobbying work. To achieve the charity's purposes during the year under review we undertook a range of activities. Our social enterprise business activities enabled us to invest in our charity during that time.

 

We provided a Family Benefits Advisory Service offering free, impartial, and confidential advice and information on childcare and work-related issues both through operating a Freephone helpline and through delivering outreach, for example presentations and one to one advice sessions in community and employer settings. During the period our Family Benefits Advice Service helped 8,301 clients across the UK and identified over £12million in financial support for families. In terms of delivering impact through the Family Benefits Advice Service - 100% of parents would recommend our services to other parents and 100% of parents rate the quality of the service as excellent or good.

Financial review

The results for the period are as set out on pages 10 to 29. The charity returned net outgoing resources of £244,441 (2023 - £223,889). At 31 May 2024 the level of unrestricted reserves held was £2,625,248 (2023 - £2,869,689).

The Directors are obliged to ensure that sufficient reserves are available to allow the organisation to continue its work in the foreseeable future. From June 2008 the main source of income is the trading activity of Employers For Childcare Trading. The Directors would wish to carry reserves of six month's running costs.

EMPLOYERS FOR CHILDCARE
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Structure, governance and management

The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association.

The directors who served during the year and up to the date of signature of the financial statements were:

Mrs J Kennedy
Mrs S McCarry
Prof M McHugh OBE
Ms A Mervyn
Mrs L Mulholland
Mr J O'Neill
Mr M Stevenson

The Board is responsible for the overall governance of the charity. Directors are either elected or co-opted and the total number of directors shall not be subject to any maximum but shall not be less than two.

The Board delegates the exercise of certain powers in connection with the management and administration of the charity to the Audit and Risk Committee. This is controlled by regular reporting back to the Board, so that all decisions made under delegated powers can be ratified by the full board in due course.

The Chief Executive Officer is responsible for the day to day management of the charity's affairs and for implementing the policies agreed by the Board of Directors.

Statement of directors' responsibilities

The directors who also act as trustees for the charitable activities of Employers for Childcare, are responsible for preparing the Directors' 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 directors 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 directors are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the group and 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 group and charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

The auditor, GMcG LISBURN, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

EMPLOYERS FOR CHILDCARE
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
Disclosure of information to auditor

Each of the directors 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.

This report has been prepared in accordance with the provision applicable to companies entitled to the small companies exemption.

The directors' report was approved by the Board of Directors.

Ms M Marin OBE
Secretary
13 February 2025
EMPLOYERS FOR CHILDCARE
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE
- 4 -

Opinion

We have audited the financial statements of Employers for Childcare (the ‘parent charitable company’) for the year ended 31 May 2024 which comprise the group statement of financial activities, the group statement of financial position, the company statement of financial position, the group statement of cash flows, the company statement of cash flows and the 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 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 group and charitable company's affairs as at 31 May 2024 and of its incoming resources and application of resources, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.

EMPLOYERS FOR CHILDCARE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE
- 5 -

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 directors 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:

-

the information given in the directors' report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the directors' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' 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:

-

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 directors' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit; or

-

the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.

EMPLOYERS FOR CHILDCARE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE
- 6 -
Responsibilities of directors

As explained more fully in the statement of directors' responsibilities, the directors 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 directors 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 directors are responsible for assessing the group's and parent charitable company'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 directors 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.

EMPLOYERS FOR CHILDCARE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE
- 7 -
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 group and charitable company for fraud and identified the greatest potential for fraud in income 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 group and charitable 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 group's and charitable company’s ability to operate or to avoid a material penalty.

EMPLOYERS FOR CHILDCARE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE
- 8 -
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 non-compliance 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.

EMPLOYERS FOR CHILDCARE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EMPLOYERS FOR CHILDCARE
- 9 -

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 Stephen Houston FCA (Senior Statutory Auditor)
for and on behalf of GMcG LISBURN
13 February 2025
Chartered Accountants
Statutory Auditor
Century House
40 Crescent Business Park
Lisburn
BT28 2GN
EMPLOYERS FOR CHILDCARE
GROUP STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income and endowments from:
Donations and legacies
3
-
14,000
14,000
-
31,115
31,115
Charitable activities
4
-
41,667
41,667
-
45,567
45,567
Other trading activities
5
826,629
-
826,629
685,870
-
685,870

Investments

6
167,190
-
167,190
86,585
-
86,585
Other income
7
6,019
-
6,019
1,955
-
1,955
Total income
999,838
55,667
1,055,505
774,410
76,682
851,092
Expenditure on:

Raising funds

8
972,638
-
972,638
844,435
-
844,435
Charitable activities
9
279,519
55,667
335,186
166,986
76,682
243,668
Tax on activities
14
(7,878)
-
(7,878)
(13,122)
-
(13,122)
Total expenditure
1,244,279
55,667
1,299,946
998,299
76,682
1,074,981
Net movement in funds
(244,441)
-
(244,441)
(223,889)
-
(223,889)
Fund balances at 1 June 2023
2,869,689
-
2,869,689
3,093,578
-
3,093,578
Fund balances at 31 May 2024
2,625,248
-
2,625,248
2,869,689
-
2,869,689

The statement of financial activities includes all gains and losses recognised in the year.

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

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
EMPLOYERS FOR CHILDCARE
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 MAY 2024
31 May 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
15
2,222,446
2,303,248
Current assets
Stocks
17
2,328
2,328
Debtors
18
23,966
35,245
Cash at bank and in hand
19
5,237,430
6,351,872
5,263,724
6,389,445
Creditors: amounts falling due within one year
20
(4,802,236)
(5,756,440)
Net current assets
461,488
633,005
Total assets less current liabilities
2,683,934
2,936,253
Provisions for liabilities
21
(58,686)
(66,564)
Net assets
2,625,248
2,869,689
Income funds
Unrestricted funds
2,625,248
2,869,689
2,625,248
2,869,689

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 Directors on 13 February 2025 and signed on its behalf by
Mrs S McCarry
Mr J O'Neill
Trustee
Trustee
Company Registration No. NI043041
EMPLOYERS FOR CHILDCARE
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 MAY 2024
31 May 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
15
1,910,611
1,952,897
Current assets
Debtors
18
140,086
94,807
Cash at bank and in hand
258,244
452,440
398,330
547,247
Creditors: amounts falling due within one year
20
(39,893)
(11,344)
Net current assets
358,437
535,903
Total assets less current liabilities
2,269,048
2,488,800
Income funds
Unrestricted funds
2,269,048
2,488,800
2,269,048
2,488,800
As permitted by S408 Companies Act 2006, the charitable company has not presented its own profit and loss account and related notes.  The charitable company's deficit for the year was £219,781 (2023 - £112,273)

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 by the Directors and authorised for issue on 13 February 2025 and signed on its behalf by
Mrs S McCarry
Mr J O'Neill
Trustee
Trustee
Company Registration No. NI043041
EMPLOYERS FOR CHILDCARE
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(1,273,571)
(1,589,630)
Income taxes refunded
-
7,125
Investing activities
Purchase of tangible fixed assets
(9,121)
(9,065)
Proceeds on disposal of tangible fixed assets
1,060
-
Investment income received
167,190
86,585
Net cash generated from investing activities
159,129
77,520
Net cash used in financing activities
-
-
Net decrease in cash and cash equivalents
(1,114,442)
(1,504,985)
Cash and cash equivalents at beginning of year
6,351,872
7,856,857
Cash and cash equivalents at end of year
5,237,430
6,351,872
EMPLOYERS FOR CHILDCARE
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(197,979)
(332,066)
Investing activities
Investment income received
3,783
1,459
Net cash generated from investing activities
3,783
1,459
Net cash used in financing activities
-
-
Net decrease in cash and cash equivalents
(194,196)
(330,607)
Cash and cash equivalents at beginning of year
452,440
783,047
Cash and cash equivalents at end of year
258,244
452,440
EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
1
Accounting policies
Charity information

Employers for Childcare is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 11 Blaris Industrial Estate, 11 Altona Road, Lisburn, Co Antrim, BT27 5QB.

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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 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
Change in accounting estimate

The directors reviewed the depreciation policy in the year, and as a result the depreciation rates were changed. The depreciation rate for fixtures, fittings and equipment was changed from 10% straight line to 5% straight line, with depreciation decreasing by £33,615.

1.3
Going concern

The charitable group as well as carrying out charitable activities via it's Family Benefits Advice Service also operates the administration of a childcare voucher scheme and an indoor adventure facility, called High Rise.

 

The directors have reviewed the cost structure for High Rise during the 2025 financial year and have taken action to reduce costs and through a concentrated marketing campaign to increase footfall. The charity uses the funds generated from the High Rise facility and the childcare voucher scheme to finance the charitable activities it undertakes.

 

The group meets its day to day working capital requirements through it’s own bank reserves and has no external funding. Total funds at bank available for use by the group and charity at the year-end was  £516,523 (2023 - £692,126) and the directors believe that the charitable group has adequate reserves to self-finance the charitable activities while the trading operations transition.

 

The directors have considered future financial projections and future cash flow requirements and are confident that the company will continue in business for the foreseeable future.  On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis.

1.4
Charitable funds

Unrestricted funds are available for use at the discretion of the directors 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.

1.5
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.

Income from charitable activities provides core funding to support the charity's activities and is recognised in full in the statement of financial activities in the year in which they are receivable,

EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies (Continued)
- 16 -

The charity receives government grants in respect of the provision of specified services, projects and activities. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Income from trading activities provides additional funding to support the charity's activities and is recognised in full in the statement of financial activities in the year in which they are receivable.

Investment income is included in the year in which it is receivable.

1.6
Expenditure

All expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under one of the following headings: Costs of raising funds, Expenditure on charitable activities and Other expenditure.

 

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

 

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, depreciation costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at the office. Office costs, depreciation costs governance costs and payroll costs are allocated to charitable activities based on useage. The allocation of the support costs is analysed in note 11.

1.7
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:

Freehold land and buildings
2% & 12.5% Straight Line
Fixtures and fittings
5% - 33.33% Straight Line
Computers
33.33% 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.

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 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.

EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies (Continued)
- 17 -
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.

EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies (Continued)
- 18 -
1.11
Taxation

There is no liability in respect of the Charity due to the charitable status.

 

Taxation in the year comprises current and deferred tax and relates to the activities of the charity's subsidiary company. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

 

Current or deferred taxation assets and liabilities are not discounted.

 

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

 

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

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

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the directors 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.

EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
2
Critical accounting estimates and judgements (Continued)
- 19 -
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 assets 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 assets lives can have a significant impact on depreciation charges for the period. Detail of the useful lives is included in the accounting policies.

3
Income from donations and legacies
Restricted
Restricted
funds
funds
2024
2023
£
£

The Rank Foundation

14,000
31,115
4
Charitable activities
Restricted Funds
Restricted Funds
2024
2023
£
£
Services provided under contract
41,667
45,567
5
Income from other trading activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£

Childcare voucher administration fees

356,838
478,225

High rise income

469,791
207,645
Other trading activities
826,629
685,870
EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
6
Income from investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Interest receivable
167,190
86,585
7
Other income
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Miscellaneous income
6,019
1,955
8

Raising funds

Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Trading costs
284,447
218,295
Staff costs
622,981
527,190
Depreciation and impairment
59,262
92,214
Share of support costs (see note 11)
5,948
6,736
972,638
844,435
EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
9
Charitable activities
2024
2023
£
£
Staff costs
209,991
155,230
Depreciation and impairment
25,371
25,485

Travel

4,521
3,270

Printing & publicity

465
712
240,348
184,697
Share of support costs (see note 11)
8,093
30,146
Share of governance costs (see note 11)
86,745
28,825
335,186
243,668
Analysis by fund
Unrestricted funds
279,519
166,986
Restricted funds
55,667
76,682
335,186
243,668
10
Description of charitable activities

To make it easier for parents with dependent children to get into work and to stay in work.

 

EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
11
Support costs
Support costs
Governance costs
2024
Support costs
Governance costs
2023
£
£
£
£
£
£
Staff costs
-
18,932
18,932
-
8,792
8,792
Depreciation
-
4,228
4,228
-
4,247
4,247

Telephone

2,217
246
2,463
1,834
204
2,038

Computer costs

6,399
711
7,110
5,828
648
6,476

Premises expenses

2,956
328
3,284
4,846
539
5,385

Insurance

2,702
300
3,002
2,363
263
2,626

Bank fees

277
-
277
296
-
296

Security costs

37
4
41
331
37
368

Postage and stationery

1,548
-
1,548
2,007
-
2,007

Legal & Professional

551
57,573
58,124
224
9,918
10,142

Sundry expenses

654
73
727
1,592
177
1,769

Staff training and recruitment

(3,300)
-
(3,300)
17,561
-
17,561
Audit fees
-
4,350
4,350
-
4,000
4,000
14,041
86,745
100,786
36,882
28,825
65,707
Analysed between
Raising funds
5,948
-
5,948
6,736
-
6,736
Charitable activities
8,093
86,745
94,838
30,146
28,825
58,971
14,041
86,745
100,786
36,882
28,825
65,707

The basis of allocation of the support costs identified above is a mixture of the percentage of time spent on each activity and the pro rata cost of each direct cost when compared to the support cost.

Governance costs includes payments to the auditors of £4,350 (2023- £4,000) for audit fees.

12
Directors
None of the directors (or any persons connected with them) received any remuneration or benefits from the charity during the year.
13
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
57
41
EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
13
Employees (Continued)
- 23 -
Employment costs
2024
2023
£
£
Wages and salaries
754,570
614,170
Redundancy costs
12,194
-
Social security costs
56,037
48,791
Other pension costs
29,103
28,252
851,904
691,212

The charity considers its key management personnel to comprise of the Chief Executive Officer and the senior management team. The total employment benefits including employer pension contributions of the key management personnel were £173,119 (2023 - £208,691).

The number of employees whose annual remuneration was more than £60,000 is as follows:
2024
2023
Number
Number
£60,000 to £80,000
-
1
£80,001 to £90,000
1
-
14
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.

 

Deferred taxation credit of £7,878 (2023 - credit of £13,122) relates to the origination and reversal of timing differences.

EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
15
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 June 2023
2,121,255
639,784
52,735
2,813,774
Additions
-
7,281
1,840
9,121
Disposals
-
(1,910)
-
(1,910)
At 31 May 2024
2,121,255
645,155
54,575
2,820,985
Depreciation and impairment
At 1 June 2023
167,838
296,126
46,562
510,526
Depreciation charged in the year
42,571
43,396
3,461
89,428
Eliminated in respect of disposals
-
(1,415)
-
(1,415)
At 31 May 2024
210,409
338,107
50,023
598,539
Carrying amount
At 31 May 2024
1,910,846
307,048
4,552
2,222,446
At 31 May 2023
1,953,417
343,658
6,173
2,303,248
EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
15
Tangible fixed assets (Continued)
- 25 -
Charity
Freehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 June 2023
2,106,783
2,696
5,492
2,114,971
At 31 May 2024
2,106,783
2,696
5,492
2,114,971
Depreciation and impairment
At 1 June 2023
154,037
2,696
5,341
162,074
Depreciation charged in the year
42,136
-
150
42,286
At 31 May 2024
196,173
2,696
5,491
204,360
Carrying amount
At 31 May 2024
1,910,610
-
1
1,910,611
At 31 May 2023
1,952,746
-
151
1,952,897
16
Subsidaries

Details of the charity's subsidiary at 31 May 2023 is as follows:

 

Employers for Childcare Trading Limited

Registered office: 11 Blaris Industrial Estate, 11 Altona Road, Lisburn, BT27 5QB

Nature of business: Other business support activities

 

This company is limited by guarantee and is deemed to be controlled by the charity.

17
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,328
2,328
18
Debtors
2024
2023
Amounts falling due within one year:
£
£
Group
Trade debtors
3,098
1,687
Other debtors
-
9,624
Prepayments and accrued income
20,868
23,934
23,966
35,245
EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
18
Debtors (Continued)
- 26 -
2024
2023
£
£
Charity
Amounts owed by subsidiary undertakings
127,386
77,597
Other debtors
-
9,624
Prepayments and accrued income
12,700
7,586
140,086
94,807
19
Cash at bank

Cash at bank includes £4,720,907 (2023 - £5,668,727) which relates to vouchers payable and is restricted client money and is not available for the use by the charitable group.

20
Creditors: amounts falling due within one year
2024
2023
£
£
Group
Other taxation and social security
42,614
28,529
Vouchers payable
4,676,818
5,659,746
Trade creditors
23,976
23,923
Other creditors
11,065
7,306
Accruals and deferred income
47,763
36,936
4,802,236
5,756,440
2024
2023
£
£
Charity
Other taxation and social security
9,546
25
Trade creditors
3,523
82
Other creditors
401
1,462
Accruals and deferred income
26,423
9,775
39,893
11,344
EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
21
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
58,686
66,564
58,686
66,564
Movements in the year
Total
£
Liability at 1 June 2023
66,564
Expense to profit or loss
(7,878)
Liability at 31 May 2024
58,686
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
29,103
28,252

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.

23
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.

At 1 June 2023
Incoming resources
Resources expended
At 31 May 2024
£
£
£
£
Health & Social Care Trust
-
41,667
(41,667)
-
The Rank Foundation
-
14,000
(14,000)
-
-
55,667
(55,667)
-
Previous year:
At 1 June 2022
Incoming resources
Resources expended
At 31 May 2023
£
£
£
£
Health & Social Care Trust
-
45,567
(45,567)
-
The Rank Foundation
-
31,115
(31,115)
-
-
76,682
(76,682)
-
EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
23
Restricted funds (Continued)
- 28 -

Health & Social Care Trust

To enable Family Benefits Advice Service to provide information, advice and guidance to families.

 

The Rank Foundation

Towards employment of a new 3-year entry level position within the organisation.

 

24
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.

At 1 June 2023
Incoming resources
Resources expended
At 31 May 2024
£
£
£
£
General funds
2,869,689
999,838
(1,244,279)
2,625,248
Previous year:
At 1 June 2022
Incoming resources
Resources expended
At 31 May 2023
£
£
£
£
General funds
3,093,578
774,410
(998,299)
2,869,689
25
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
Fund balances at 31 May 2024 are represented by:
Tangible assets
2,222,446
-
2,222,446
2,303,248
-
2,303,248
Current assets/(liabilities)
461,488
-
461,488
633,005
-
633,005
Provisions
(58,686)
-
(58,686)
(66,564)
-
(66,564)
2,625,248
-
2,625,248
2,869,689
-
2,869,689
26
Related party transactions

There were no disclosable related party transactions during the year (2023 - none).

EMPLOYERS FOR CHILDCARE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
27
Cash generated from group operations
2024
2023
£
£
Deficit for the year
(244,441)
(223,889)
Adjustments for:
Investment income recognised in statement of financial activities
(167,190)
(86,585)
Gain on disposal of tangible fixed assets
(567)
-
Depreciation and impairment of tangible fixed assets
89,428
121,946
Taxation
(7,878)
(13,122)
Movements in working capital:
(Increase) in stocks
-
(2,328)
Decrease/(increase) in debtors
11,281
(11,556)
(Decrease) in creditors
(954,204)
(1,360,096)
(Decrease) in deferred income
-
(14,000)
Cash absorbed by operations
(1,273,571)
(1,589,630)
28
Analysis of changes in net funds - group

The charity had no debt during the year.

27
Cash generated from operations - charity
2024
2023
£
£
Deficit for the year
(219,781)
(112,273)
Adjustments for:
Investment income recognised in statement of financial activities
(3,783)
(1,459)
Depreciation and impairment of tangible fixed assets
42,286
42,475
Movements in working capital:
(Increase) in debtors
(45,279)
(82,615)
Increase/(decrease) in creditors
28,578
(178,194)
Cash absorbed by operations
(197,979)
(332,066)
28
Analysis of changes in net funds

The charity had no debt during the year.

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