Charity Registration No. 1088344 Company Registration No. 2229357 (England and Wales THE ST0KE￿N-TRENT AND DISTRICT GINGERBREAD CENTRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE LEGALAND ADMINISTRATIVE INFORMATION Trustees Miss Fiona Miller Mr Jack Brerelon Mr Malcolm Jolliffe Mr Caine Black Mr Henry Davies MrAnthony McGovem Ms Salima Shariff Mr Paul Shenlon (Appointed 18 June 2024) (Appointed 16 November 2023) (Appointed 22 August 2024) {Appointed 18 June 2024) (Appointed 16 November 2023) Charity number 1088344 Company number 2229357 Registered office Rothesay Court. Furnace Road. Stoke on Trent, ST3 4LY Senior Management Team Mr Trevor Cottam Mrs Nikki Evans Ms Helen McNicol Buckley Chief Executive Offi￿r Finan￿ Manager Service Manager Auditor Geens Limited. Graphic House. 124 City Road. Stoke on Trent, ST4 2PH Bankers Barclays Bank, Leicester. LE87 2BB THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 31 MARCH 2024 In our capacily as Trustees of The Gingerbread Cenlre, we are honoured to present Ihe Tnjstees Report and audited financial statements for the fiscal year concluding on March 31. 2024. These financial statements adhere to the Statement of Recommended Practice Accounting and Reporting by Charities (SORP 2019) and fully m&t the statutory requirements outlined in the charity's goveming document. The financial statements have been prepared in accordance with the accounting poliaes sel out in not& 1 to the financial statements and comply with the charity's goveming document, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charilies preparing their accounls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021" (effective 1 January 2019). Objectives and activities Our core objectives and primary activities encompass the following- 1. Accommodation for Vulnerable Familie5, Young Parents and Single Pregnant Women We extend 5hort-term, supported accommodation to vulnerable families, young parents and single pregnant women, providing a safe haven during their time of need. 2. Providing Support in Time of Need Our foremost goal is to offer intensive, tailored support through individual support plans including advice, activities and asslstance within Stoke-on-Trent. Staffordshire and the surrounding areas to individuals facin9 hardship, distress or challenging circumstances. Our decision-making process aligns meticulously with guidance provided by the Charity Commission, ensuring the charity's aclivilies remain in harmony with our mission. Public ben8fit We confirm that we have paid due regard to guidance issued by the Chatity Commission in deciding what activities the charity should undertake. THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE CONTENTS Page Twstees. report Independent auditorfs report 8-10 Statement of financial activities 11 Balance sheet 12 Statement of cash flows 13 Notes to the financial statemenls 14-27 THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and perforniance Significanf activities and achievements against objecliv8S The Gingert)read Centre has been a steadfast pillar of support for vulnerable individuals in the Stoke-on-Trent region since its eslablishment in 1977. accumulating 47 years of dedicated service. Our beneficiaries receive not only shetter but also personalised guidance tailored lo their unique circumslanGes. This support transforms their outlook on life. enabling them to perceive new opportunities. We facilitate activities and situations that enhance their self-confidence and fumish them wilh the skills necessary to envisage a brighter future. Our charitable operations span iwo dedicated ￿ntreS in Stokevon-Trent: sa Court Normacot" Homele Families Uni Rothesay Court constitutes a sanctuary for homeless families. including single parents. expectant mothers, fathers, and couples. Comprising 22 units of supported accommodation. it offers seven reselllement support areas. This support encompasses vital lrfe skills such as budgeting, building support networks, accessing training, securing slable housing, and transitioning lo independent living. Resettlement support is thoughtfully provided to families as they embark on the journey lo establishing a new. secure home. Our dedicaled staff collaborates closely with social care servI￿s. health professionals, midwives local housing providers, and mental heallh seNices. while also forging partnerships with local charities and organisations. This multi-pronged approach seeks to empower residents lo harness their own skills. knowledge. and resourcefulness to live independently. Personalised support plans, grounded in evidence•based tools. are individually crafted for each resident. Our Activity Club. based at Rothesay Court. operates within a children and young people's activity centre. equipped with a purpose-built outdoor play area. The Activity Team extends its services to Calherine Court as well. ensuring families can access these enriching opportunities. In addition to a regular roster of internal activities, we organise numerous outings to local attraclions, events. and leisure facilities, enriching the lives of those we serve. herine Court H nle '. Teen Parents Uni Catherine Court offers accommodalion-based support exdusively for expectant teenage mothers, teenage parents seeking to develop the skills necessary for effective parenting, and the pursuit of independent living in their own homes. The facility encompasses seven self-conlained flats and four two-bedroom properties, providing 24-hour supported accommodation for pregnant or parenting teenagers aged 1&19, alongside their children. Floating support is available for up to three months following the transition to independenl living. At The Gingerbread Centre. we are proud to maintain consislenlly high occupancy rates across both units throughout the year, attesting to the substantial demand for our services. Care Leavers A change in legislation for care leavers aged belween 16 and 18 in late 2023 diclated that we must become OFSTEO fegistered in order to offer accommodation and support to young parents who are care leavefs. We aim lo register at OFSTED in Q21Q3 of 2024. Void Management It is worth noting that the teams at both sites worked incredibly hard to keep voids to an absolute minimum throughout the year and successfully achieved that aim. This was helped in part by the reduced aval￿bIlItY of move- on properties which saw families waiting, on average, an extra 2 months to find their next home. Prevention. Early Intervention and Longer-term Support We are also laying the foundations lo extend our reach of support and increased ac￿ESS to our family and housing support to more families and young parents in the community with the development of an Outreach service and inviting children and young people lo sessions al our Activity Club. Our aim is to develop in-road5 towards prevention, early intervention and longer-term support. THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Financial review Restricted funds for the year show a surplus of £11,241 (2023 - £10,467 deficit). The core charitable activities are primarily supported by two commissioned service contracts disclosed as restricted funds. During the financial year, these Supporting People contracts raised income of £209.680 and an additional £32,500 was generated by fundraising. Total costs of Supporting People adivilies were £235.297, which left a surplus of £6,883. In this financial year we also showed a deficit in the Activity Club which is mOs￿Y funded by a restricted Children in Need grant. In total we received unrestricted income of £914.978 (2023- £744.736) with unrestricted expenditure of £883,001 {2023'. £772,486). After investment losses of £5.116 (2023.. loss £14.562) the unrestricted fund surplus (including designated funds) in the year was £85,891 {2023 deficit £42,312). Reserves are held to ensure that the Charity has the ability to withstand any unforeseen drops in income and to provide capilal for future strategic growth At the balance sheet date the Charity had total reserves of £378.864 (2023= £281.732) of which £355,742 (2023.. £269,851 } are unrestricted reserves. The Management Committee considers the current reserves are an adequate buffer against risks that cannot be negated by other means, whilst underpinning the strategic plan for the future of the Chaflty. At the balance sheet dale the Charity held cash at bank and investments totalling £499.726 (2023.. £389,517). As wilh rèserves. these liquid funds provide a buffer against unforeseen drops in income or working capital providing security that the Charity will be able to meet its financial obligations as they fall due. ReseNes policy Aim of Reserves Policy To ensure Trustees comply with current legislation and recommendations from the Charity Commission regarding reserves and their use. To maintain a sufficient level of reserves to allow the charity to continue to operate for a period of up to 2 months, should a shortfall in income occur. To maintain a sufficient level of reserves to allow the charity to wind down. should it be necessary. To lake account of polenlial financial risks to the charity. To prepare for contingencies that may arise from lime to time. To ensure the level of reserves is reviewed on an annual basis. To ensure reserves are used to generate income. To ensure the management of reserves is exercised in the best interest of the charity. Reserves Policy It is our policy to assess the level of reserves require by using the Risk Identification approach. which is Lfsed by most charities. When deciding the level of reserves held by the charity, consideration will be given to.. cash flow, existing funds. future income streams, committed expenditure, changes in legislation. risk identification and the future needs of the charity. This approach ensures that the reserves held are not too high or too low. and that we hold sufficient reserves for any conlingencies that may occur. All financial calculations and risk assessments will be reviewed and updated annually. An acceptable reserves level will be set based on covering identified risks. The Board may release reserves for new projects and services, to assist the aims of the Charity, as long as the level of reserves remains above the minimum requirement. taking into consideration a deficit budget. Unrestricted reserves will reduce in the event of an annual deficit. Reslricled funds are excluded from the Reserves Policy and are accounted for separately. Trustees are empowered lo invest unrestricted reserves in accordance with the Investment Policy. THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Printhpal funding sourc&s Navigating Risks and Uncertainties At the heart of The Gingerbread Cenlre's governan￿ lies a robust risk management process. This process hinges on the meticulous upkeep and scrutiny of a comprehensivé risk register. Wthin this register. we identify and evaluate major risks meticuloltsly. These risks undergo regular review under the careful supervision of our Chief Officer and Management Committee during scheduled meetings. To effectively navigate these risks. we've established a set of systems and procedures. Primary Risks in Focus a) Loss of Supporting People contracts Both Supporting People contracts were recenlly exlended. with a 5°A cut lo the funding, and now end in March 2026. Our reliance on voluntary contributions to bridge the funding gap, required lo mainlain our existing core support service level. is as much needed now as ever before. To miligate the unknown silualion of any continuation or renewed contract after March 2026, we have devised a mutti-pronged approach, which includes.. Suslaining exceptional perfomance outcomes Achieving favourable and positive service review reports. Forging dose collaborations with commissioners. positioning us favourably for successful contract retenders Repositioning ourselves as a Family Support Serm￿ to compliment the accommodation we offer lo homeless families and young parenls Become OFSTED registered Develop an outreach service b) Ensuring Financial Sustainability Maintaining financial suslainability presents an ongoing challenge, given the stringent budgets associated with our primary contracts and the limited diversity in our income streams. In response, we are proaclively crafting a robust fundraising strategy thal now encompasses a dedicated focus on securing Trusts and Grants funding. Simultaneously, we are actively exploring partnerships and collaborative ventures with other Servi￿ providers and organisations. Additionally. we're proactively pursuing service tenders for complementary offerings. The looming presence of rising living costs. surging energy prices. escalating inflation, and further calls for efficiencies and cost savings from our commissioned services portend an increased reliance on voluntary income in the foreseeable future. c) A Purpose Built Supported Accommodation Propety We are making the tentative steps towards a possible new accommodation property a purpose built building incorporating over 50 flats, the Activity Club, a Drop-in provision. an Outreach base and the charities Offi￿S. Safeguarding Reputation The Gingerbread Centre enjoys a sterling reputation among local residents and stakeholder partners. To proleGt this invaluable asset, we are committed lo a series of miligating aclions. foremost among them- Unwavering commitment to delivering exceptional seN1￿. Strict adherence to agreed-upon policies and procedures. A concerted focus on the recruitment. relention. and professional development of our dedicated slaff. Roadmap for the Future Our steadfast commitment to providing supported accommodation and related services al Rolhesay Court and Catherine Court remains unwavering, contingent upon securing satisfactory funding arrangements. THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Our strategic ambition centres on establishing the capacity to deliver our Supported Accommodation model to homeless families by acquiring our own propety{ies). Such a "new" building would primarily supplant the accommodation at Rolhesay Court and. ideally. replace Catherine Court's facilities. In addition to these benefits. it would usher in economies of scale. particulady in terms of staffing costs during evening. weekend, and night hours, aligning with our objective to eliminate lone working periods. Our Trustees convene to chart the Charity's strategic course. They concur thal diversifying our funding sources forms an integral component of our risk management strategy. ensuring the charity's financial suslainability while expanding our reach lo serve more individuals in need. Structure, governance and management The Gingerbread Centre is a regislered charity and is a company limtted by guarantee and is constituted under a Memorandum ofAssociation dated 18th April 2016. At November's AGM, we saw the resignation from the Board as Chair by Mrs Eleanor Morrisey. We would like to take this opportunity to thank Ele for her tireless work as Chair of the Board and maintaining the charily's momentum over a prolonged period. Miss Fiona Miller was voted on as the new Chair of the Board of Trustees at the November AGM. Fiona has been a Trustee of The Gingerbread Centre since September 2019 and has a great understanding of the accommodation and support we provide and as is very aware of local govemment issues and the detailed landscape of the voluntary sector in and around Stoke-on-Trent. The trustees, who are also the directors for the purpose of o)mpany law, and who served durtng Ihe year and up to the date of signature of the financial statements were.. Mrs Eleanor Morrissey Miss Fiona Miller Mr Jack Brereton Mr Malcolm Jolliffe Mr Richard Adams Mrs Charlotte Smith Mrs Christine Fearns Mr Caine Black Mr Henry Davies Mr Anthony McGovern Ms Salima Shariff Mr Paul Shenton (Resigned 16 November 2023) (Resigned 20 August 2024} (Resigned 19 December 2023) (Resigned 23 April 2023) (Appointed 18 June 2024) (Appointed 16 November 2023) (Appointed 22 August 2024) (Appointed 18 June 2024) (Appointed 16 November 2023) THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 R&cnJilment and appointment of tmstees Under the requirements of the Memorandum and Articles of Association the mèmbers of the Management Commitlee shall retire from Offi￿ in rotation every three years at the Annual General Meeting. after which they can be re-elected, if willing to stand and if the vacancy remains. The Management Committee seeks to ensure that the needs of the organisation and ils client group are appropriately reflected in the diversity of the trustee body. To maintain this broad mix of skills, members of the Management Committee are requested lo complete a skills audit which is updated each year. If skills are lost or numbers of members decrease due to retirement. then recruitment will take pla￿. Introduction of new Irustees is done via word of mouth and personal recommendation. or via a specialist recruitment agency. Organisational stmcture The Gingerbread Centre has a Management Commtttee who meet al least 4 times per year and who afe responsible for the strategic direction and policy of the Charity- Al present the Management Committee has eight members from a variety of professional backgrounds relevant to the worf( of the charity. In July 2022 we saw the appointment of Trevor Cottam as CEO. A scheme of delegation is in place and day to day responsibility for the provision of sep4ices rests with the Chief Officer. along with the Seniof Management team. The Chief Officer has responsibility for all aspects of the day to day operations of the Charity lo ensure that il delivers the services specified. remains strategically relevant and that key perfomiance indicators are met. The Chief Officer currently also has responsibility for funding and health and safety. The Head of SerVI￿s is responsible for the day lo day operational management of the supported accommodation at both Rothesay Court and Catherine Court. The Finance Manager has responsibility for all day-to-day financial matters of the organisation. All major risks have been reviewed and systems have been established to manage those risks. Inducbon and training of tnistees Most trustees are already familiar with the practical work of the Charity. New trustees are given relevant information about their roles and responsibilities and about the Charity in accordance with our policy for appoinlmenl of trustees. Trustees are encouraged to visit the Charity, to attend viewings of the premises, and infcimal meetings are held with the Chief Officer and staff. Training opportunities are circulated to trustees and they are involved in planning meetings with senior management. During the Trustee indudion new trustees are provided with a comprehensive handbook covering all relevant policies, procedures and other relevant infomiation, such as a copy of the Essential TTuslee. Remuneration Policy Arrangements fof setting the pay of the Charity's key personnel is currenlly the same as for all other employees. As part of Ihe budget setting process for the new financral year, a salary increase option appraisal is taken for the trustees for discussion and decision. included is a simple benchmark of local salary rates for simi￿r roles and this information feeds in lo the discussion. The Managemenl Committee then consider staff remuneration and salary increases in relation to their finances. THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE TRUSTEES. REPORT {INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Statement of trustees. responsibilities The trustees who are also directors of The Stoke-on-Trent and District Gingerbread Centre for the purposes of company law. are responsible for preparing the Trustees. Annual Report (including the Strategic Report) and thé financial statements in accordance with applicable law and United Kingdom Accounting Slandards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare finan￿al slalements for each financial year. Under company law the Iruslees must not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the charitable company and of the incoming resources and applicalion of resources. including the income and expendilure. of the charitable company for that period. In preparing these financial statements, the trustees are required lo: select suitable accounting policies and then apply them consistently-, observe the methods and principles in the Charities SORP 2019 (FRS 102). make judgements and estimates that are reasonable and prudent,. state whether applicable UK Accounling Standards have been followed, subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concem basis unless il is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounting records that disdose with reasonable accuracy at any time the financial position of the tharitable company and enable Ihem to ensLtre that the financial stalemenls comply with the Companies Acl 2006. They are also responsible for safeguarding the assets of the charilable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware= there is no relevant audit infomiation of which the charitable company's auditor is unaware., and Ihe trustees have taken all steps that they ought to have taken lo make themselves aware of any relevant audit informalion and to establish that the audilor is aware of that infomiation. The trustees are responsible for the maintenance and integrrty of the corporate and financial information included on the charitable company's website. Legislalion in the United Kingdom goveming the preparation and disseminalion of financial statements may differ from legislation in other jurisdictions. Auditor In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the company will be put at a General Meeting. The tru port was approved by the Board of Trustees. Miss Fiona Trustee Dale: THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE Opinion We have audited the financial statements of The Stoke-on-Trent and Dislrict Gingerbread Centre (Ihe 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet the slatement of cash flows and the notes lo the financial slatemenls. including a summary of significant accounting policies. The financial Teporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ir8land (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements= give a Irue and fair view of the state of the chartlable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, for the year then ended., have been propedy prepared in accordance wtlh United Kingdom General￿ Accepted Accounting Practi￿,. and have been prepared in accordance with the requirements of the Companies Acl 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UIQ {ISAs (UKI) and applicable law. Our responsibilities under those standards are further described in the Audilofs r8sponsibilities for the audil ol Èhe 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 financFal statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibiltties in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to Pfowde a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded Ihal the trustees. use of the going con¢em basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfom)ed, we have not identffied any material uncertainties relating to events or conditions that. individually or collectively. may cast significant doubt on the charity's ability to conlinue as a going concem for a period of al least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilrties of the trustees with respect to going COn￿M are described in the relevant sections of this report. Other information The other information comprises Ihe information included in the annual report other than Ihe financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other infomation and we do not express any form of assurance conclusion Ihereon. Our responsibility is lo ￿ad the other information and, in doing so, consider whether the other information is materially inconsistenl with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstalements, we are required to determine whether this gives rise to a materkil misslatement in the financial statements Ihemselves. If, based on the work we have performed. we conclude that there is a material misstalemenl of this other information. we are required to report that fact. We have nothing lo report in this regard. Matters on which we are required to report by exception We have nothing lo report in respect of the following matters in relation to which the Charities {Accounts and Reports) Regulations 2008 require us lo report to you if, in our opinion: the information given in the financial slalemenls is inconsistent in any material respect with the trustees, report- or sufficient accounting records have not been kept- or the financial slalemenls are not in agreement with the accounting records-, or we have not received all the information and explanations we require for our audit. THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE Responsibilities of trustees As explained more fully in the statement of Iruslees, responsibilities. the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such inlemal conlrol as the Irustees determine is necessary lo enable Ihe preparation of financ4al slalements Ihal are free from material misstatemenl, whelher due lo fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charity's ability lo continue as a going concern, disclosing, as applicable, mallers related lo going concem and using the going concern basis of accounting unless the trustees either intend lo liquidate Ihe charitable company or to cease operations, or have no realistic allernalive but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordancè with the Act and relevant regulations made or hawng effect Ihereunder. Our objectives are to obtain reasonable assurance about whelher the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an audilorfs report that includes our opinion. Reasonable assuran￿ is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a malerial misstatement when it exists. Misslatements can arise from fraud or errof and are considered malerial if, individually or in the aggregate. they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud. are instances of non-compliance with laws and regulations. We design prO￿dureS in line with our responsibilities, outlined above. to detect material misstatements in respecl of irregularities, including fraud. The extent to which our procedures are capable of detecling irregularities, including fraud, is delailed below. As part of our planning process.. we enquired of management the systems and controls the charity has in place, the areas of the financial slatements Ihal are most susceplible lo the risk of irreg¢Jlarities and fraud. whether there was any known, suspected or alleged fraud. the charity did not inform us of any known, suspeGled or alleged fraud. We obtained an understanding of Ihe legal and regulatory frameworks applicable to Ihe charity. We determined Ihat the following were most relevanl.. the Charity SORP. FRS 102, Charilies Act 2011. CompaniesAct 2006. We considered the incentives and opportunities that exist in the charity. including the extent of management bias, which present a potenlial for irregularities and fraud lo be perpetuated, and tailored our risk assessmenl accordingly. Using our knowledge of the Charity, together with the discussions held with the charity al the planning stage, we formed a conclusion the risk of misstatement due to irregularilies including fraud and tailored our procedures according to this risk assessment. The key procedures we undertook lo detect irregularrties including fraud during the course of the audit induded.. Identifying and testing journal entries and the overall accounting records, in particular Ihose thal were significant and unusual. Reviewing the finanaal statement disdosures and detemiining whether accounting policies have been appropriately applied. Reviewing and challenging the assumptions and judgemenls used by management in their significant accounting estimates. Assessing the exlenl of compliance, or lack of, with relevant laws and regulations. Assessing the validity of the classificalion of income, expenditure. assets and liabilities be￿een unrestricted and restricted funds. Obtaining third paty confirmation of material bank balances. Documenting and verifying all significant related paty balances and transactions. Reviewing documentalion such as charity board minutes for discussions of irregularities including fraud. THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE STOKE-ON-TRENT AND DISTRICT GINGERBREAD CENTRE Because of the inherenl limitations of an audit, there is a risk that we will not detect all irregularities, including those leading lo a material misstatement in the financial statements or non-complian￿ with regulation. The risk increases the more that compliance with a law or regulalion 15 removed from the events and transactions reflected in the financial statements, as we will be less likely lo become aware of instances of non