The dailyReset sets a bit to 1. If that bit == 1; the loop calls the setAlarms() function
Really? The dailyReset() function creates a local variable called initBit, and sets its value. It prints the value, and then ends, so initBit goes out of scope (ceases to exist). The global variable of the same name is NOT affected by the actions of dailyReset(), so what dailyReset() does has NO bearing on the rest of the code.