**Charity Registration No. 1088561**
## **THE TWINKLE TRUST**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
**THE TWINKLE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 11|
The Trustees present their report and financial statements for the year ended 31 March 2023.
## **Reference and administrative details**
Registered charity number 1088561 Principial address 9 Victoria Grove, London, W8 5RW Bankers Adam & Company 22 Charlotte Square Edinburgh EH2 4D Solicitors Spratt Endicott 52154 The Green Banbury Oxonox l6 9AB
## **Trustees**
The Trustees serving during the year and since the year end were as follows:
- R Shakeshaft
- R P E Shakeshaft
- D Endicott
## **Structure, Governance and Management**
## Governing Document
The Twinkle Trust was established by a charitable trust deed dated 3 July 2001.
## Appointment of Trustees
There shall be at least three Trustees at any point in time. Future trustees shall be appointed by resolution of the Trustees at a special meeting. ln selecting persons to be appointed as trustees, the Trustees shall take into account the benefits of appointing a person who through residence, occupation, employment or otherwise has a special knowledge of the area of benefit, or who is otherwise able by virtue of his or her personnel or professional qualifications to make a contribution to the pursuit of the objects or the management of the trust. The Trustees of the charity are all unpaid volunteers.
## **Organization**
The day-to-day activities of the trust are overseen by R Shakeshaft and R P E Shakeshaft, two of the charity's Trustees.
## **Aims and objectives of the charity**
The Trust's objects are to apply the income and the whole or any part or parts of the capital for such purposes which are from time to time recognised as exclusively charitable according to the law of England and Wales as the Trustees in their absolute discretion may think fit.
The Trustees' objectives for the year under review was to mainly support organisations which dealt with the relief of sickness, care and support as well as those that promote education, advancement of skills and the relief of poverty. Note 5 to the financial statements details the organisations supported by the Trust during the year.
## **Achievements and Performance**
The charity’s income for the year amounted to £14,418 (2022 - £12,988) and the expenditure for the year was £16,271 (2022 - £14,100). The resulting net loss was £1,853 (2022 – £1,112).
**Reserves**
## **THE TWINKLE TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
The Trustees have reviewed the reserves of the charity. This review encompassed the nature of the income and expenditure streams, the need to match variable income with commitments and the nature of the reserves. The Trustees consider that the current level of unrestricted reserves of £8,944 to be sufficient to enable the Trust to continue to generate enough investment income to continue with the policy of distributing grants in pursuance of its charitable objectives. The Funds will vary due to the market value of the investments.
## **Trustees' Responsibilities**
The Trustees are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
Trust law requires the Trustees 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 surplus or deficit of the charity for that period. ln preparing those financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently
- make judgements and estimates that are reasonable and prudent,
- state whether applicable accounting standards have been followed, subject to any material departures
- disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence forsaking reasonable steps for the prevention and detection of fraud and other irregularities.
By order of the board of Trustee
…………………………. R Shakeshaft **Trustee**
Date: ………………
- 2 -
**THE TWINKLE TRUST**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF THE TWINKLE TRUST**
I report to the trustees on my examination of the financial statements of The Twinkle Trust (the charity) for the year ended 31 March 2023.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Elliott Pearl ACA for and on behalf of Gravita Chartered Accountants
Dated: .........................
- 3 -
## **THE TWINKLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
9,000
Grant income
**3**
5,009
-
Investment income
**4**
409
-
**Total income**
14,418
-
**Expenditure on:**
Governance costs
**6**
1,322
-
Charitable activities
**5**
14,300
-
**Total resources expended**
15,622
-
**Other recognised gains/(losses)**
Gains/(loss) on revaluation of investments
(649)
-
**Net movement in funds**
1,853
-|**Total**
**2023**
**£**
9,000
5,009
409
14,418
1,322
14,300
15,622
(649)
1,853|**Total**
**2022**
**£**
12,750
-
238|
|---|---|---|
|||12,988|
|||1,250
12,850|
|||14,100|
|||1,635
523|
- 4 -
## **THE TWINKLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Notes**
**Fixed assets**
Investments
**9**
**Current assets**
Debtors
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**10**
Net current assets/(liabilities)
**Total assets less current liabilities**
**Income funds**
Restricted funds
Unrestricted funds
The financial statements were approved by the trustees on ...|**2023**
**£**
-
1,117
1,117
(1,320)
......................|**£**
9,147
(203)
8,944
-
8,944
8,944|**2022**
**£**
-
2,201
2,201
(1,200)
|**£**
9,796
1,001
10,797
-
10,797
10,797|
|---|---|---|---|---|
.............................. R Shakeshaft **Trustee**
- 4 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **Charity information**
The Twinkle Trust is a registered charity incorporated in England and Wales. The registered office is 9 Victoria Grove, London W8 5RW.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
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 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors 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.
## **1.4 Incoming resources including tax reclaims on gifts**
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.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Incoming resources from tax reclaims are included at the same time as the gift to which they relate.
- 6 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
## **1.5 Resources expended**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the accountancy fees and costs linked to the strategic management of the charity.
## **1.6 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.
## **1.7 Investments**
Investments quoted on a recognised stock exchange are stated at market value at the balance sheet date. Any gains or losses arising on revaluations or disposals throughout the year are taken to the Statement of Financial Activities.
## **1.8 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.
- 7 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## _**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.
## **1.9 Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees 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.
- 8 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Donations and gifts
9,000
-
Grants
5,009
-
14,009
-
**4**
**Investment income**
Dividends Receivable|**Total**
**2023**
**£**
9,000
5,009
14,009
**2023**
**£**
409|**Total**
**2022**
**£**
12,750
-|
|---|---|---|
|||12,750|
|||**2022**
**£**
238|
- 9 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **5 Charitable activities**
|St James Place Foundation
Clowns in the Sky
Jill Heaton
Kids Space
Good Law Project
Weldmar Hospice
J Hollywood
The Connection @ St. Martins
Friends of Christ Church
M/ SED
Nottinghill M. Church
Diverse Abilities
Fairs
Langalanga Scholarship Fund
Thrive
Conquest Art
St Michaels Fellowship
Teen Action
Rainbow Trust
Salvation Army
Kingswood Trust
Swindon Young
Willow Trust
**Analysis by fund**
Unrestricted funds
Restricted funds
**For the year ended 31 March 2022**
Unrestricted funds
Restricted funds|**2023**
**£**
-
-
800
500
-
500
-
1,000
500
-
750
500
500
5,500
500
-
1,000
250
-
500
500
-
1,000
14,300
14,300
-
14,300|**2022**
**£**
500
500
600
-
500
-
500
-
500
500
1,250
-
-
5,500
-
500
-
-
-
-
-
1,000
1,000|
|---|---|---|
|||12,850|
|||12,850
-|
|||12,850|
- 10 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **6 Analysis of Governance Costs**
|**Analysis of Governance Costs**|||
|---|---|---|
|Bank charges
Accountancy
Legal and Professional|**2023**
**£**
2
1,320
-
1,322|**2022**
**£**
(200)
1,200
250|
|||1,250|
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **8 Employees**
## **Number of employees**
The average monthly number employees during the year was:
|**9**
**Fixed asset investments**
Investments
**Movements in fixed asset investments**
Carrying value at beginning of year
Movement in cash held for investment purposes
Net (losses)/gains on revaluation
Carrying value at end of year
**10**
**Creditors: amounts falling due within one year**
**Notes**
Accruals and deferred income|**2023**
**Number**
-
**2023**
**£**
9,147
**2023**
**£**
9,796
(649)
9,147
**2023**
**£**
1,320
1,320|**2022**
**Number**
-
**2022**
**£**
9,796|**2022**
**Number**
-
**2022**
**£**
9,796|
|---|---|---|---|
||||**2022**
**£**
9,796|
||||**2022**
**£**
8,161
1,635|
||||9,796|
||||**2022**
**£**
1,200|
||||1,200|
- 11 -
**Charity Registration No. 1088561**
## **THE TWINKLE TRUST**
# **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **THE TWINKLE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 11|
## **THE TWINKLE TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
The Trustees present their report and financial statements for the year ended 31 March 2024.
## **Reference and administrative details**
Registered charity number 1088561
Principial address 9 Victoria Grove, London, W8 5RW
Bankers Coutts & Co 440 Strand London WC2R 0QS
Solicitors Spratt Endicott 52/54 The Green Banbury Oxon OX16 9AB
## **Trustees**
The Trustees serving during the year and since the year end were as follows:
- R Shakeshaft
- R P E Shakeshaft
- D Endicott
## **Structure, Governance and Management** Governing Document
The Twinkle Trust was established by a charitable trust deed dated 3 July 2001.
## Appointment of Trustees
There shall be at least three Trustees at any point in time. Future trustees shall be appointed by resolution of the Trustees at a special meeting. ln selecting persons to be appointed as trustees, the Trustees shall take into account the benefits of appointing a person who through residence, occupation, employment or otherwise has a special knowledge of the area of benefit, or who is otherwise able by virtue of his or her personnel or professional qualifications to make a contribution to the pursuit of the objects or the management of the trust. The Trustees of the charity are all unpaid volunteers.
## **Organization**
The day-to-day activities of the trust are overseen by R Shakeshaft and R P E Shakeshaft, two of the charity's Trustees.
## **Aims and objectives of the charity**
The Trust's objects are to apply the income and the whole or any part or parts of the capital for such purposes which are from time to time recognised as exclusively charitable according to the law of England and Wales as the Trustees in their absolute discretion may think fit.
The Trustees' objectives for the year under review was to mainly support organisations which dealt with the relief of sickness, care and support as well as those that promote education, advancement of skills and the relief of poverty. Note 5 to the financial statements details the organisations supported by the Trust during the year.
## **Achievements and Performance**
The charity’s income for the year amounted to £125,868 (2023 - £14,418) and the expenditure for the year was £19,535 (2023 - £16,271). The resulting surplus was £109,333 (2023 – £1,853).
- 1 -
## **THE TWINKLE TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **Reserves**
The Trustees have reviewed the reserves of the charity. This review encompassed the nature of the income and expenditure streams, the need to match variable income with commitments and the nature of the reserves. The Trustees consider that the current level of unrestricted reserves of £118,277 to be sufficient to enable the Trust to continue to generate enough investment income to continue with the policy of distributing grants in pursuance of its charitable objectives. The Funds will vary due to the market value of the investments.
## **Trustees' Responsibilities**
The Trustees are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
Trust law requires the Trustees 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 surplus or deficit of the charity for that period. ln preparing those financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently
- make judgements and estimates that are reasonable and prudent,
- state whether applicable accounting standards have been followed, subject to any material departures
- disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence forsaking reasonable steps for the prevention and detection of fraud and other irregularities.
By order of the board of Trustee
………………………….
R Shakeshaft **Trustee**
24/10/2024 Date: ………………
- 2 -
## **THE TWINKLE TRUST**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF THE TWINKLE TRUST**
I report to the trustees on my examination of the financial statements of The Twinkle Trust (the charity) for the year ended 31 March 2024 which are set out on pages 4 to 11.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **Gravita II LLP** Chartered Accountants
Dated: 25/10/2024
- 3 -
## **THE TWINKLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
101,000
Other income
**3**
27,259
-
Investment income
**4**
609
-
**Total income**
128,868
-
**Expenditure on:**
Governance costs
**6**
1,320
-
Charitable activities
**5**
19,000
-
**Total resources expended**
20,320
-
**Other recognised gains/(losses)**
Gains/(loss) on revaluation of investments
785
-
**Net movement in funds**
118,277
-|**Total**
**2024**
**£**
101,000
27,259
609
128,868
1,320
19,000
20,320
785
118,277|**Total**
**2023**
**£**
9,000
5,009
409
14,418
1,322
14,300
15,622
(649)
1,853|
|---|---|---|
- 4 -
## **THE TWINKLE TRUST**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2024**_
|||**2024**||**2023**||
|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Investments|**9**||9,932||9,147|
|**Current assets**||||||
|Debtors|**10**|25,000||-||
|Cash at bank and in hand||84,665||1,117||
|||109,665||1,117||
|**Creditors: amounts falling due within**||||||
|**one year**|**11**|(1,320)||(1,320)||
|Net current assets/(liabilities)|||108,345|(203)|(203)|
|**Total assets less current liabilities**|||118,277|8,944|8,944|
|**Income funds**||||||
|Restricted funds|||-||-|
|Unrestricted funds|||118,277||8,944|
||||118,277||8,944|
24/10/2024 The financial statements were approved by the trustees on .........................
..............................
R Shakeshaft **Trustee**
- 5 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
## **Charity information**
The Twinkle Trust is a registered charity incorporated in England and Wales. The registered office is 9 Victoria Grove, London W8 5RW.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
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 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors 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.
## **1.4 Incoming resources including tax reclaims on gifts**
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.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Incoming resources from tax reclaims are included at the same time as the gift to which they relate.
- 6 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
## **1.5 Resources expended**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the accountancy fees and costs linked to the strategic management of the charity.
## **1.6 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.
## **1.7 Investments**
Investments quoted on a recognised stock exchange are stated at market value at the balance sheet date. Any gains or losses arising on revaluations or disposals throughout the year are taken to the Statement of Financial Activities.
## **1.8 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.
- 7 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
## _**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.
## **1.9 Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees 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.
- 8 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Donations and gifts
101,000
-
Other income - Gift Aid
27,259
-
128,259
-
**4**
**Investment income**
Dividends Receivable|**Total**
**2024**
**£**
101,000
27,259
128,259
**2024**
**£**
609|**Total**
**2023**
**£**
9,000
5,009|
|---|---|---|
|||14,009|
|||**2023**
**£**
409|
- 9 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **5 Charitable activities**
|Shuktara
Maggies
Jill Heaton
Kids Space
Imperial Health Clinic
Weldmar Hospice
Christchurch Community Trust
The Connection @ St. Martins
Friends of Christ Church
Action Medical Research
E R D Connections
Kataya Hutton
Nottinghill M. Church
Diverse Abilities
Fairs
Langalanga Scholarship Fund
Strongbow Children Trust
Thrive
Conquest Art
St Michaels Fellowship
Teen Action
Rainbow Trust
Salvation Army
Kingswood Trust
Swindon Young
Willow Trust
**Analysis by fund**
Unrestricted funds
Restricted funds
**For the year ended 31 March 2022**
Unrestricted funds
Restricted funds|**2024**
**£**
500
250
1,200
500
500
-
1,000
-
500
1,250
3,000
4,000
-
-
-
1,800
500
500
500
-
-
-
500
500
1,000
1,000
19,000
19,000
-
19,000|**2023**
**£**
-
-
800
500
-
500
-
1,000
500
-
-
-
750
500
500
5,500
5,500
500
-
1,000
250
-
500
500
-
1,000|
|---|---|---|
|||14,300|
|||14,300
-|
|||14,300|
- 10 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **6 Analysis of Governance Costs**
|**Analysis of Governance Costs**|||
|---|---|---|
|Bank charges
Accountancy
Legal and Professional|**2024**
**£**
-
1,320
-
1,320|**2023**
**£**
2
1,320
-|
|||1,322|
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **8 Employees**
## **Number of employees**
The average monthly number employees during the year (excluding trustees) was:
|**9**
**Fixed asset investments**
Investments
**Movements in fixed asset investments**
Carrying value at beginning of year
Movement in cash held for investment purposes
Net (losses)/gains on revaluation
Carrying value at end of year
**10**
**Debtors**
**Notes**
Accrued income|**2024**
**£**
9,932
**2024**
**£**
9,147
785
9,932
**2024**
**Number**
-
**2024**
**£**
25,000
25,000|**2023**
**£**
9,147
**2023**
**Number**
-|**2023**
**£**
9,147
**2023**
**Number**
-|
|---|---|---|---|
||||**2023**
**£**
9,147|
||||**2023**
**£**
9,796
(649)|
||||9,147|
||||**2023**
**£**
-|
||||-|
- 11 -
## **THE TWINKLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**11**
**Creditors: amounts falling due within one year**
**Notes**
Accruals and deferred income|**2024**
**£**
1,320
1,320|**2023**
**£**
1,320|
|---|---|---|
|||1,320|
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**Charity Independent Examination Tool**
## **Version Number: 4.0 (May 2024)**
## **Tailoring Checklist**
1. Complete the following data concerning the client. This will then appear on every sheet.
**----- Start of picture text -----**
Client name The Twinkle Trust
Year-end 31/03/2024
File number 14465C
**----- End of picture text -----**
This page is a record of the responses given to the online tailoring questions. It should be noted that any answers changed in this sheet will NOT then change the available sheets. To make changes to the contents, the user is advised to revisit the online questionnaire to either complete another full tailoring checklist or select only the required sheets and copy these into the generated file.
The responses given on this page will impact the conditional formatting on the 'Progress' sheet. If further sheets are added, it is advised to change the responses here as well. This is also good practice to ensure that a clear audit trail is maintained.
_Any references to ISQM (UK) 1 in this programme are to the applicable FRC UK version as updated in July 2020 or later. References to the Revised Ethical Standard (ES) are to the December 2019 version._
_A permanent file which can be tailored for the engagement is available at Navigate Audit > Tools > Audit tools._
## Key:
* - Suggested sheet/document, but a template is not included in the audit tool. These will usually appear in the sheet indexes and suggestions for where further guidance can be found will be provided where applicable;
P - Specific partner sign off required on the sheet.
## **Ref Question**
**Answer Associated Sheet(s)**
## **CURRENT FILE**
|Do you want:||
|---|---|
|IE001
Progress Tracker
IE002
Review Points
IE003
File index|Yes
Progress
Yes
Review
Yes
ChIE - Index|
|IE004
Completion memorandum
IE005
File Completion checklist|Yes
ChIE - B1
Yes
ChIE - B1.1|
|IE006
Trustees' Annual Report (accruals basis only)
IE007
Format of IE report, including justification of opinion|Yes
ChIE - B3
Yes
ChIE - B4|
|IE008
Form and content of accounts|Yes
ChIE - B5|
|IE009
Failure in adequate accounting records|Yes
ChIE - B6|
|IE010
Reporting matters of material significance to charity regulators|Yes
ChIE - B6.1|
|IE011
Summary of misstatements
IE012
Queries for partner
IE013
Points forward for next year|Yes
ChIE - B8
Yes
ChIE - B9
Yes
ChIE - B10|
|||
|IE014
Planning memorandum|Yes
ChIE - C1|
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|IE015
Acceptance procedures|Yes
ChIE - C1.1|
|---|---|
|IE016
Understanding the charity
IE017
Know your client checklist
IE018
Register of laws and regulations|Yes
ChIE - C2
Yes
ChIE - C2.1
Yes
ChIE - C2.2|
|IE019
Eligibility for Independent Examination|Yes
ChIE - C3|
|IE020
Materiality ranges
IE021
Systems overview|Yes
ChIE - C4
Yes
ChIE - C5|
|||
|IE022
Accounting policies, estimates and judgments
IE023
Analytical review|Yes
ChIE - D1
Yes
ChIE - D2|
|IE024
Review of accounting records and transactions|Yes
ChIE - D3|
|IE025
Post balance sheet events
IE026
Related party transactions|Yes
ChIE - D4
Yes
ChIE - D5|
|||
|IE027
Do you want a blank working paper to customise?|Yes
Blank Sheet|
|||
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**----- Start of picture text -----**
Client Name: The Twinkle Trust Prepared by: SC Date: 03/09/2024 Ref:
Year end: 31/03/2024 Reviewed by: Date: B1
File number: 14465C
**----- End of picture text -----**
## **Completion memorandum**
_The purpose of this memorandum is to :_
_(a) document the conclusions and the basis for the independent examination opinion, and so enable the issuing of the accounts for signature; and (b) document any matters arising between the issue of the accounts to the client for approval and completion of the independent examiner's report._
_These can be either free form notes, a reference to the relevant checklist or a combination of both._
_**CC32 Direction 3** : Keep a record of the examination and the conclusions reached which is sufficient to allow a third party unconnected with the work to conclude that the examiner has followed the Directions._
## **1. Approval for issuing accounts for signature**
## I confirm that:
- 1 We have obtained and documented, on a timely basis, sufficient appropriate evidence to be able to draw reasonable conclusions on which to base our opinion as independent examiner and to support our report to the trustees.
- 2 Materiality was set at an appropriate final level.
- 3 All threats to objectivity and independence have been properly addressed.
- 4 Any differences of opinion amongst the engagement team have been resolved in accordance with the firm's procedures.
- 5 Appropriate communication has been sent to those charged with governance.
- 6 Written representations have been requested from management regarding their responsibility for the accounts and other matters as 7 All work that needs to be undertaken before the independent examiner's report is signed is specified below.i t
In current year (31/03/24) substantial income has been received and unrestricted funds are £93,277 at the year end compared to £1,853 in prior year. No issues with going concern in current year. Accounts prepared by the accounts team, and IE undertaken by partner within the audit team. Informed management in place so no independence issues. No concerns or issues highlighted during the course of the review work and therefore no need to inform charity commission of any issues or concerns.
I authorise the issue of the accounts for approval.
Partner: Shona Munday Date: 16/10/2024
## **2. Approval for signing the independent examiner's report**
I confirm that:
- 1 The independent examination complies with professional standards and applicable legal and regulatory requirements.
- 2 A sufficient and appropriate record for the basis of the independent examiner's report has been documented.
- 3 There are no factors to indicate that the representations received from the trustees cannot be relied upon.
- 4 The independent examiner’s report issued is appropriate in the circumstances.
- 5 An approved copy of the accounts will be placed on the working paper file.
I authorise the signing of the independent examiner's report.
Partner: Date:
**3. File completion B1.1** Completed - YES/NO YES
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**----- Start of picture text -----**
4. Trustees annual report B3 Completed - YES/NO
N/A
5. Format and justification of independent examiners report B4 Completed - YES/NO
N/A
6. Review of accounts B5 Completed - YES/NO
YES
7. Failure in accounting records B6 Completed - YES/NO
N/A
8. Whistleblowing to the Charity Commission B6.1 Completed - YES/NO
YES
9. Unadjusted errors B8 Completed - YES/NO
N/A
**----- End of picture text -----**
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**----- Start of picture text -----**
Client Name: The Twinkle Trust Prepared by: SC Date: 03/09/2024 Ref:
Year end: 31/03/2024 Reviewed by: Date: B1.1
File number: 14465C
**----- End of picture text -----**
## **File completion checklist**
_This form deals with the various points that ought to be cleared before the opinion is signed. It should ensure that the working papers are complete, conclusions are documented and that the requirements under the legislation are met._
_**CC32 Direction 3** : Keep a record of the examination and the conclusions reached which is sufficient to allow a third party unconnected with the work to conclude that the examiner has followed the Directions (including Directions 1 and 2)._
- 1 Has the _Planning memorandum_ ( **IE C1** ) been satisfactorily completed?
- 2 Have any risks identified at the planning stage been appropriately considered and adequately minimised?
- 3 Have the work programmes been fully completed?
- 4 Have working papers been prepared giving details of the work undertaken and conclusions reached, including any areas of concern and matters of professional judgement?
- 5 Have all final journals been recorded and processed to produce a closing trial balance agreeing with the accounts? Ensure that a copy of both the trial balance and the accounts is on file with detailed schedules supporting disclosures.
- 6 Has the analytical review been fully documented ( **IE D2** )? _(CC32 Direction 3)_
- 7 Have all queries and problems been properly cleared or carried forward to points for principal/highlights?
- 8 Have copies of all relevant information that was relied upon and/or considered in carrying out the examination (for example copies of the governing document, trustees' meeting minutes and a record of discussions with the charity's trustees and the charity's staff) been placed on file? _(CC32 Direction 3)_
- 9 Have the engagement team demonstrated sufficient professional scepticism in their review of evidence and client responses? Is this adequately documented on file?
- 10 Does the file contain evidence of `principal' review?
- 11 Have all principal review points been cleared?
- 12 Are the terms of engagement still appropriate and has the appointment been confirmed in a communication with the trustees? _(CC32 Direction 3)_
- 13 Has the permanent file been updated for information obtained from the governing document, trustees' meeting minutes and discussions with the charity's trustees and staff?
- 14 Have all matters of concern been resolved and documented with the trustees and charity staff together with details of any subsequent verification and vouching/ checking procedures used? _(CC32 Direction 3)_
- 15 Has the justification of opinion form ( **IE B4** ) been completed?
- 16 Has a letter of representation been drafted confirming all relevant representations?
- 17 Has a budget been set for next year?
- 18 Has the whistleblowing checklist ( **IE B6.1** ) been completed? 19 Has the client complied with the firm's money laundering procedures?
||Yes/No|Initials|
|---|---|---|
||Yes|SC|
||Yes|SC|
||||
||Yes|SC|
||Yes|SC|
||||
||Yes|SC|
||||
||||
||Yes|SC|
||Yes|SC|
||||
||Yes|SC|
||||
||||
||||
||Yes|SC|
||||
||N/A|SC|
||N/A|SC|
||Yes|SC|
||||
||N/A|SC|
||||
||N/A|SC|
||||
||||
||N/A|SC|
||Yes|SC|
||N/A|SC|
||Yes|SC|
||Yes|SC|
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|20|Has the examiner confirmed and documented that he has the qualifications and membership|
|---|---|
||(where required) to carry out the examination (**IE C1.1**)?_(CC32 Direction 3)_|
|21|Have schedules**C1.1** _(Acceptance procedures)_and**C3** _(Eligibility for an independent_|
||_examination)_been fully completed?_(CC32 Direction 3)_|
|22|Has a copy of the trustees' annual report been placed on file, where accruals accounts are|
||prepared?_(CC32 Direction 3)_|
|23|Have details been recorded on file of any matters identified as matters of material significance|
||which the examiner must report to the Commission, or any relevant matters that the examiner|
||chose to report to the Commission?_(CC32 Direction 3)_|
|24|If issued, ensure a letter of engagement signed by the trustees is on file.|
|25|Where any breaches of the Ethical Standard have been identified, have these been|
||communicated to those charged with governance and, where relevant, regulatory|
||authorities in a timely fashion?|
|26|Has evidence of communications about fraud made to management, those charged with|
||governance, regulators and others been documented on the file?|
|27|Have any circumstances or additional information arisen during the course of the engagement that|
||would have changed decisions taken around acceptance or continuance at the planning stage?|
**----- Start of picture text -----**
Yes SC
Yes SC
Yes SC
Yes SC
N/A SC
N/A SC
N/A SC
N/A SC
**----- End of picture text -----**
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**----- Start of picture text -----**
Client Name: The Twinkle Trust Prepared by: SC Date: 03/09/2024
Year end: 31/03/2024 Reviewed by: Date:
File number: 14465C Schedule ref: B5
**----- End of picture text -----**
## **Form and contents of accounts**
_**Objective:** to provide a reasonable basis on which to decide whether or not the accounts comply with the regulations as to the form and content of charity accounts._
_**CC32 Direction 10** : Check the form and content of the accounts._
_Carry out detailed procedures as the examiner considers necessary to provide a reasonable basis on which to conclude whether or not the accounts have been properly prepared. The examiner must:_
- _where receipts and payments accounts have been prepared, check that the charity can lawfully prepare such accounts, that all the accounting statements are present and that the funds of the charity are correctly identified; or_
- _where accruals accounts are prepared, check that they comply with the applicable Statement of Recommended Practice: Accounting and Reporting by Charities (SORP) and the applicable accounting standard; and_
- _if the charity is a company, check that the accounts also comply with the applicable company law requirements._
_See Navigate Audit > Charity > Programmes > Using the programmes > Independent examination specific programmes_
||||Covered by|Covered by|Results|satisfactory|Ref / comments|Initials and|
|---|---|---|---|---|---|---|---|---|
||||accountancy|||Y/N||date|
|||||Y/N|||||
|1||Consider the accounting and disclosure requirements of:|||||||
||(a)|The Charities (Accounts and Reports) Regulations;|Y||Y|||SC
03/09/2024|
||||Y||Y|||SC|
||(b)|SORP - Accounting and Reporting by Charities;||||||03/09/2024|
||||Y||Y|||SC|
||(c)|Charity Reporting and Accounting: the essentials(CC15d)||||||03/09/2024|
||||Y||N/A|||SC|
||(d)|Receipts & Payments Accounts Pack(CC16)||||||03/09/2024|
|2||Complete the appropriate disclosure checklists.|Y||Y|||SC|
|||||||||03/09/2024|
|3||Where receipts and payments accounts have been prepared, check|Y||N/A||All present, large|SC|
|||that the charity can lawfully prepare such accounts, that all the|||||donation in year is|03/09/2024|
|||accounting statements are present and that the funds of the charity are|||||£100k into savings||
|||correctly identified.|||||to be distributed to||
||||||||various charities as||
||||||||the trustees see fit.||
|4||Where accruals accounts are prepared, check that they comply with the|Y||Y|||SC|
|||SORP and applicable accounting standard.||||||03/09/2024|
|5||If the charity is a company, check that the accounts also comply with the|
N/A||N/A|||SC|
|||applicable company law requirements.||||||03/09/2024|
|6||Note any implications for the examiner's report and for separate|N/A||N/A|||SC|
|||reporting to the Commission||||||03/09/2024|
|7||Other tests:|N/A||N/A|||SC|
|||||||||03/09/2024|
||||||||||
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**----- Start of picture text -----**
Client Name: The Twinkle Trust Prepared by: SC Date: 03/09/2024
Year end: 31/03/2024 Reviewed by: Date:
File number: 14465C Schedule Ref B6.1
Reporting matters of material significance to charity regulators
**----- End of picture text -----**
_Sections 156(2) of the Charities Act 2011 places a duty upon the independent examiners of both the non-company and company charities to make a report to the Charity Commission, where in the course of their examination, they identify a matter, which relates to the activities or affairs of the charity or of any connected institution or body, and which the examiner has reasonable cause to believe is likely to be of material significance for the purposes of the exercise by the Commission of its functions under section 156(3) of the Charities Act 2011. See Navigate Audit > Charity > Guidance and methodology > Audit and reporting requirements > Reporting matters of material significance to charity regulators_
Charity regulators have identified nine matters of significant concern which are of material significance to their work and so give rise to a reporting duty.
For each of the matters below, give details including the nature of the matter if any ‘yes’ answers, and consider whether there is any evidence of reportable matters of material significance which ought to be reported to the charity regulators (e.g. Charity Commission).
- **1 Matters suggesting dishonesty or fraud involving a significant loss of, or a material risk to, charitable funds or assets** . Examples include:
- (i) False accounting, theft or misappropriation by any charity trustee.
- (ii) Evidence of theft or misappropriation by any employee, volunteer, agent or third party not reported to the police authorities or the Commission.
- (iii) Evidence giving rise to doubts about the honesty or integrity of any charity trustee (e.g., evidence that the person is disqualified from acting as a trustee under 178 Charities Act 2011).
N/A
- **Failure(s) of internal controls, including failure(s) in charity governance, that resulted in, or could give rise to, a material loss or misappropriation of**
- **2 charitable funds, or which leads to significant charitable funds being put at major risk.**
- Examples include:
- (i) Receipt by any charity trustee or connected person of any remuneration, benefits or other financial advantage without proper powers or consents.
- (ii) Failure to hold trustee meetings or otherwise to properly control the charity’s affairs.
- (iii) Gross failure to keep accounting records, such that the auditor is unable to express an opinion on the accounts.
- (iv) Evidence of indifference or recklessness on the part of the charity trustees.
- (v) Failure to take professional advice without due consideration.
- (vi) Functions delegated to third parties are not monitored and controlled.
- N/A
- **Matters leading to the knowledge or suspicion that the charity or charitable funds, including the charity's bank account(s) have been used for money**
- **3 laundering or such funds are the proceeds of serious organised crime or that the charity is a conduit for criminal activity.**
- Examples include:
- (i) Material applications of funds clearly outside the charity’s objectives.
- (ii) Deliberate or reckless investments or other actions contrary to the trusts of the charity.
- N/A
**Matters leading to knowledge or suspicion that the charity, its trustees, employees or assets, have been involved in or used to support terrorism or**
- **4 proscribed organisations in the UK or outside of the UK, with the exception of matters related to a qualifying offence as defined by Section 3(7) of the Northern Ireland (Sentences) Act 1998.**
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**----- Start of picture text -----**
N/A
**----- End of picture text -----**
- **Evidence suggesting that in the way the charity carries out its work relating to the care and welfare of beneficiaries, the charity’s beneficiaries have been or**
- **5 were put at significant risk of abuse or mistreatment** .
- N/A **Matters suggesting single or recurring breach(es) of either a legislative requirement or of the charity’s trusts leading to material charitable funds being**
- **6 misapplied.**
Examples include:
- (i) Failure to obtain proper consent from the Charity Commission in respect of property transactions with connected persons, variation in the charity’s activities or the charity’s governing document, or similar breach of legislative requirements.
- (ii) Attempts to evade direct or indirect tax. N/A
- **Evidence suggesting a deliberate or significant breach of an order or direction made by a charity regulator under statutory powers including suspending a**
- **7 charity trustee, prohibiting a particular transaction or activity or granting consent on particular terms involving significant charitable assets or liabilities.**
- N/A **On making a modified audit opinion, emphasis of matter, material uncertainty related to going concern, or issuing of a qualified independent examiner’s report identifying matters of concern to which attention is drawn, notification of the nature of the modification/qualification/emphasis of matter or concern**
- **8 with supporting reasons including notification of the action taken, if any, by the trustees subsequent to that audit opinion, emphasis of matter or material uncertainty identified /independent examiner’s report.**
**----- Start of picture text -----**
N/A
**----- End of picture text -----**
- **Evidence that significant conflicts of interest have not been managed appropriately by the trustees and/or related party transactions have not been fully**
- **9 disclosed in all the respects required by the applicable SORP, or applicable Regulations.**
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N/A
**----- End of picture text -----**
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Client Name: The Twinkle Trust Prepared by: SC Date: 03/09/2024 Ref:
Year end: 31/03/2024 Reviewed by: Date: C1
File number: 14465C
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## **Planning memorandum**
_The purpose of this memorandum is to document fully the plan such that the independent examination can be performed in an effective manner and in accordance with the Charity Commission's Directions_ _**(CC32)** . In each section issues relevant to the planning should be recorded. These can be either free form notes, a reference to the relevant checklist or a combination of both._
## **1. Approval of planning**
I confirm that:
- 1 The client is eligible for exemption from an audit.
- 2 The firm can act as reporting accountants, being sufficiently independent or appropriate safeguards implemented.
- 3 The terms set out in the current letter of engagement are still valid.
- 4 The engagement has been planned having regard to the relevant ethical requirements and there are no outstanding ethical or independence issues which would prevent the firm from proceeding with the engagement.
- 5 Taking into account the nature, size and complexity of the engagement, the engagement team has considered holding and documenting a planning meeting.
- 6 Sufficient understanding of the client has been obtained to enable an effective independent examination plan to be designed, including documentation of relevant information systems (using **ChIE - C5** as necessary).
- 7 Materiality has been set at a appropriate level.
- 8 The work has been planned effectively in accordance with the Charity Commission's Directions, and the procedures tailored to the client's requirements, including additional procedures where appropriate.
- 9 The engagement team collectively has the appropriate capabilities, competence and time to perform the independent examination engagement in accordance with professional standards and regulatory and legal requirements, and to enable an independent examiner’s report that is appropriate in the circumstances to be issued;
- 10 The staff assigned have been adequately briefed.
Partner: Shona Munday Date: 16/10/2024
**2. Acceptance / continuance**
**C1.1** Completed - YES / NO
YES
## **3. Scope of engagement**
YES
**4. Understanding the charity**
**C2** Completed - YES / NO
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The charity is small, as it is noted that Gravita have worked with them for a number of years so that there is a good understanding of what the charity does, and their charitable objectives. This is the first year they've had a significant donation.
|**5. Eligibility for independent examination**|**C3**Completed - YES/NO|
|---|---|
|YES||
|**6. Materiality**|**C4**Completed - YES/NO|
|NO.||
|**7. Identified risks and engagement approach**||
|NO||
**8. Administration** NO
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Client Name: The Twinkle Trust Prepared by: SC Date: 03/09/2024 Ref:
Year end: 31/03/2024 Reviewed by: Date: C1.1
File number: 14465C
Independent examination acceptance procedures
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_The Charities Act 2011 section 145(1)(a) describes an Independent Examiner as 'an_ _**independent person** who is reasonably believed by the charity trustees to have the_ _**requisite ability** and_ _**practical experience** to carry out a_ _**competent examination** of the accounts'._ _**CC32 Direction 2** requires that the examiner must not be influenced, or perceived to be influenced, by either close personal relationships with the trustees of the charity, being a major donor of having control or significant influence over a major funder to the charity, or through day to day involvement in the administration of the charity being examined. The examiner must ensure that there are no matters and no potential matters that would reasonably give rise to a perception of their independence that would affect their ability to carry out the examination in a wholly objective manner._
_We recommend that the examiner's acceptance procedures are performed to the same standard as an audit engagement and this form therefore refers extensively to the FRC Ethical Standard._
_This form assumes knowledge of the Charity Commission Independent Examination Guidelines (_ _**CC32** ) and the FRC Ethical Standard. Procedures must be completed annually for all clients to ensure that the standards have been complied with. Where the engagement relates to a new client, engagement teams will need to ensure a new client checklist is completed. A template is available in Navigate Audit: Navigate Audit >Navigate Audit > Templates and Letters > Audit compliance templates > Audit clients The current Ethical Standard can be found at: Navigate Audit > Auditing Standards > Current Auditing Documents > FRC Ethical Standards > Revised Ethical Standard 2019_
|**_1_**
**_Undue dependence on a client_**
i)
ii)
iii)
iv)
v)
Do the total fees for this client/group of clients exceed:
10% of the annual fee income of the audit firm or the part of the firm by reference
to which the engagement partner’s profit share is calculated?
15% of the annual fee income of the audit firm or the part of the firm by reference
to which the engagement partner’s profit share is calculated?
Taking into account the firm's own policies (which may be tighter than those in the
ES), has the firm identified that the audit engagement poses or could be seen to
pose a greater threat to the firms’ independence, for example, due to its prestige
or other factors?
Has the firm followed its internal procedures to ensure that any threat is mitigated
to an acceptable level?
Have any fees for this client been set on a contingent fee basis?
Note whether advantage being taken of the Provisions Available for Audits of Small Entities (ES
Section 6).
**_Paragraph 4.31_**|**_Yes_**
Yes
_YES / NO*_|**_No_**
No
No
No
No|
|---|---|---|
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## _**2 Loans to or from a client; guarantees; overdue fees**_
## _**Paragraph 2.20 Paragraph 4.11**_
a) Does the firm, covered persons or persons closes associated with them, have any loans No or guarantees to or from the client? b) Are there any overdue fees for any services? No
## _**3 Goods and services: gifts and hospitality**_
_**Paragraph 4.40**_ Have you, any covered persons or persons closes associated with them, accepted any gifts No or favours, including hospitality, from the charity, unless an objective, reasonable and informed third party would consider the value thereof as trivial or inconsequential? Have you offered gifts, favours or hospitality to the audited entity or its management (unless an objective, reasonable and informed third party would consider the value thereof as trivial or inconsequential)?
## _**4 Litigation**_
_**Paragraph 4.46**_ Is there any actual or threatened litigation between yourself and the client in relation to fees, No work relating to the independent examination, or other work?
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## _**5 Family or other personal relationships**_
## _**CC32 Direction 2, 2.9**_
## _**Paragraph 2.59**_
- a) Do you or any of your staff have any personal or family connections with the charity, its trustees or its officers?
- b) Confirm that neither you nor any of your staff have any day to day involvement in the administration of the charity
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No
No
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## _**6 Ex-partners or senior employees**_
## _**Paragraph 2.37**_
- a) Has any officer of the company been a partner or senior employee in the practice? b) Is the partner or any senior employee on the audit joining or involved in substantive negotiations with the client?
- c) Does the firm currently have any staff 'loaned' to the entity, or have any returned to the firm on completion of a loan assignment?
No No No
## _**7 Mutual business interest**_
_**Paragraph 2.3**_ Do you or any of your partners or staff have any mutual business interests with the charity No or with an trustee or employee of the charity?
## _**8 Beneficial interests and trusteeships**_
_**Paragraph 2.16**_
Does the firm, any partner, covered person, or persons closely associated with them, have any financial involvement in the company in respect of the following:
a) Any beneficial interest in shares or other investments? No b) Any beneficial interest in trusts? No c) Any trustee investments, nominee shareholdings or ‘bare trustee’ shareholdings? No
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No
d) Any trusteeships in a trust that holds shares in an audit client?
## _**9 Associated firms**_
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Are you or your staff associated with any other practice or organisation which has any No
dealings with the company?
Long association
Paragraph 3.1
a) Have partners or staff in senior positions had a long association with the entity? No
b) Have any long association safeguards applied been communicated to the client entity? No
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## _**10 Long association**_
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## _**11 Provision of other services, specialist valuations and advocacy by the firm or a network firm**_
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See Section 5 of the Revised Ethical Standard (2019); and
CC32, Direction 2
a) Are any services in relation to the management of the charity performed by the firm or a No
network firm?
b) Are any accounting services performed for the charity such as preparation of the Yes
statutory accounts from trial balance, bookkeeping or payroll services?
c) Do the accounts include any specialist valuations carried out by the firm or a network No
firm (including actuarial valuations and valuations of financial instruments required by
FRS 102)?
d) Are any internal audit services provided by the firm or a network firm? No
e) Are the firm or a network firm currently acting for the client as an advocate in any No
adversarial proceeding or situation such as a hearing before the Commissioners?
f) Has the firm or a network firm been involved in the design, provision or implementation No
of any IT systems?
g) Does the firm or a network firm provide advice on taxation matters or undertake tax No
compliance work for the client?
h) Have any other services been provided to the client that may cause a threat to the firm's No
objectivity or independence?
Informed management in place and adjustments are discussed and agreed with them.
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## _**12 Adequate resources and proper performance**_
|(a)
(b)
(c)
(d)
(e)
Are there any indications that the engagement team is not competent or does not have
the necessary time and resources?
Are there any indications that the firm or engagement team will not be able to
demonstrate compliance with ethical requirements?
Are there any aspects of the client, or other factors, that will adversely affect the firm’s
ability to perform the examination properly?
Are there any issues concerning the integrity of the trustees, key management or those
charged with governance of the entity?
Where the accounts are prepared on an accruals basis in accordance with regulations,
do you consider that the examiner does not have the required understanding of the
charity SORP?||No
No
No
No
No|
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- (f) Where gross income exceeds £250,000, the examiner is required by the Charities Act No 2011 to be a member of one of the recognised accountancy bodies. Answer 'yes' where this is not the case.
- (g) Do you consider that the examiner does not have relevant practical experience of No charities? No
- (g) Do you consider that the examiner does not have relevant practical experience of charities?
- (h) Do you have any concerns that the examiner is not sufficiently skilled to carry out the examination and, where required, does not have confirmed membership of a listed body?
## _**13 Client integrity**_
Are there indications that the client lacks integrity, including:
- (a) The identity and business reputation of the client's principal owners, key management, related parties and those charged with governance.
- (b) The nature of the client's operations, including its business practices.
- (c) Information concerning the attitude of the client's principal owners, key management and those charged with its governance towards such matters as aggressive interpretation of accounting standards/ internal control environment.
- (d) Whether the client is aggressively concerned with maintaining the firm's fees as low as possible.
- (e) Indications of an inappropriate limitation in the scope of work.
- (f) Indications that the client might be involved in money laundering or other criminal activities.
- (g) The reasons for the proposed appointment of the firm and non-reappointment of the previous firm.
No No No No No No No
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## _**14 Other circumstances**_
Confirm that there are no other circumstances in the examiner's judgment that would No reasonably lead to the perception that the examiner is not independent. Answer 'yes' if there are such circumstances. _**15 Ineligibility**_ If applicable, have you informed the trustees that you are not eligible to carry out the No independent examination
_Provide any details necessary relating to the above questions:_
## _**Safeguards**_
Where any of the above questions have been answered ‘yes’, specify what safeguards are proposed to maintain integrity and independence, and to ensure the availability of resources and the ability to perform the examination properly.
The accounts are prepared by Gravita, however there is informed management in place at the client, and all adjustments and journals are approved by them and as such the preparation of the accounts is a mechanical exercise and no judgements or decisions are made by Gravita. The accounts have also been reviewed by a partner independent from the independent examination (Elliott Pearl). On this basis we consider that sufficient safeguards are in place to mitigate any risk from either acting as management or self review.
## _**Conclusion**_
Having regard to any safeguards identified above, I am satisfied that appropriate procedures regarding the acceptance and continuance of this client relationship have been followed, and that the conclusions reached in this regard are appropriate and have been properly documented. In arriving at this conclusion I confirm that I have:
- a) obtained all relevant information from the firm (and where applicable network firms) to identify and evaluate circumstances and relationships that may create a threat to independence;
- b) evaluated information on identified breaches, if any, of the firm’s independence policies and procedures to determine whether they create a threat to independence for this engagement;
c) taken appropriate action to eliminate such threats or reduce them to an acceptable level by applying safeguards; and d) documented the conclusion on independence and any relevant discussions within the firm that support this view. e) informed the client of all significant facts and matters that bear upon the firm's objectivity and independence. Partner: Shona Munday Date: 16/10/2024
## _**Consultation**_ (to be completed where appropriate)
In my opinion the steps proposed are sufficient to maintain independence and to ensure the availability of resources and the ability to perform the examination properly and in a wholly objective manner.
Second
Partner:
Not required.
Date:
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Client Name: The Twinkle Trust Prepared by: SC Date: 03/09/2024
Year end: 31/03/2024 Reviewed by: Date:
File number: 14465C Schedule ref: C3
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## **Eligibility for independent examination**
_**Objective** : to obtain and record sufficient evidence to enable us to form an opinion as to whether the charity is entitled to exemption from audit._
_**CC32 Direction 1** : Check whether the charity is eligible to have an independent examination, or whether it is required to have an audit by charity or company law or for any other reason. If the trustees have chosen to prepare the accounts on a receipts and payments basis, the examiner must check that the charity is eligible for receipts and payments accounts._
## _Check that:_
- _(i) an examination is required under section 145(1) of the Charities Act 2011, and that section 144(1) (audit) of the Charities Act 2011 does not apply to the charity; and_
- _(ii) where the charity is a small company, that it is exempt from audit in accordance with section 477 of the Companies Act 2006, and_
_(iii) where accounts are prepared on a receipts and payments basis under section 133 of the Charities Act 2011, that the charity trustees may properly elect to prepare accounts under this sub-section; and_
_(iv) if the charity has subsidiaries that the group income is below the threshold for the preparation of group accounts set out in section 138 of the Charities Act 2011. The current threshold specified in The Charities Act 2011 (Group Accounts) Regulations 2015._
According to the information contained in the accounting records and discussions with client, ensure that the following has been completed:
- 1 Checked the charity audit threshold applying to the accounts to be reviewed.
- 2 Confirmed that income and assets are below the audit threshold, or if applicable, obtained a copy of the letter from the Commission approving an audit dispensation. If applicable, recheck the threshold calculation during the examination.
For accounting periods ending on or after 31 March 2015, confirm that:
- (a) gross income is over £25,000 and not more than £1m; or
- (b) gross income does not exceed £250,000 if the aggregate value of total assets (before deduction of liabilities) exceeds £3.26m.
_NB. If gross income is less than £25,000, an Independent Examination is not required but the trustees can chose if they wish._
- _NB. If income is more than £250,000, the examiner must be a member of a listed body._
- 3 If the charity is using the receipts and payments basis:
- (a) Confirm that the gross income is less than £250,000; and
- (b) Confirm that it is not a charitable company.
- (c) Confirm that there is no requirement to prepare accruals accounts in the charity's governing document or for any other reason.
- (d) If applicable, informed the trustees that the charity is not eligible to prepare receipts and payments accounts.
- 4 Confirm that gross income includes total recorded income (before deduction of any costs or expenses) in all restricted and unrestricted funds, but not resources received as capital funds (e.g. receipts of loans, proceeds of sale of investments or fixed assets).
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Planning - Final - Initials Ref/comments
Initials and date and date
SC 03/09/2024 SC 03/09/2024
SC 03/09/2024 SC 03/09/2024
SC 03/09/2024 SC 03/09/2024
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SC 03/09/2024 SC 03/09/2024
SC 03/09/2024 SC 03/09/2024
SC 03/09/2024 SC 03/09/2024
SC 03/09/2024 SC 03/09/2024
SC 03/09/2024 SC 03/09/2024
SC 03/09/2024 SC 03/09/2024
SC 03/09/2024 SC 03/09/2024
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|5
Checked an audit is not required for any other reason and confirmed that the
charity is eligible for independent examination. If not eligible for independent
examination, inform the trustees accordingly.
6
Confirm the charity's governing document does not specify any form of
professional audit.
7
Confirm that there are no grant conditions which demand an audit by reviewing
major grants.
8
If the charity has one or more subsidiaries confirmed that group accounts are
not required by law.
9
If a charitable company, checked that the audit exemption statement has been
made.|SC 03/09/2024
SC 03/09/2024
SC 03/09/2024
SC 03/09/2024
SC 03/09/2024
SC 03/09/2024
SC 03/09/2024
SC 03/09/2024
SC 03/09/2024
SC 03/09/2024||
|---|---|---|
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Client Name: The Twinkle Trust Prepared by: SC Date: 03/09/2024
Year end: 31/03/2024 Reviewed by: Date:
File number: 14465C Schedule ref: D3
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## **Review of accounting records and transactions**
_**Objective:** to obtain and record sufficient evidence to form an opinion as to whether the charity’s accounts are in accordance with the accounting records and that transactions are in accordance with the charity’s objects._
_**CC32 Direction 6** : Check that the accounts are consistent with the accounting records._
_Compare the accounts of the charity with the charity’s accounting records in sufficient detail to reasonably conclude that the accounts are not materially inconsistent with the accounting records._
_See Navigate Audit > Charity > Programmes > Using the programmes > Independent examination specific programmes_
|1
Check all current year items appearing in the accounts on the face
of the Statement of Financial Activities, summary income and
expenditure account or receipts and payments account to the trial
balance.
(a)
Include a copy of the cross-referenced accounts and trial
balance on file.
2
Check all items from the trial balance to the nominal ledger.
(a)
If no nominal ledger is kept for a charity preparing a receipts and
payments account, agree details to the cash records.
3
Check a sample of the figures in the nominal ledger or trial
balance to the prime books and vice versa, including:
(a)
accounting records, maintained by computer accounting
packages; and
(b)
debtors and creditors in the nominal
ledger to supporting list of balances.
4
Review a sample of bank reconciliations and control accounts for
completeness of postings from books of prime entry.
5
Check items to the underlying records where:
(a)
the make-up of items in the nominal ledger is unclear; or
(b)
concerns arise which cannot be resolved; or
(c)
the accounts are prepared directly from the basic records.
6
Consider whether any transactions do not appear to comply with
the objects of the charity.
7
If applicable, confirm that the trustees have taken the necessary
steps to ensure that restricted or endowed funds are correctly
reported in the accounts.|Covered by
accountancy
Y/N
Results
satisfactory
Y/N
Ref/comments
Y
Y
Y
Y
Y
N/A
N/A
N/A
Paper and Bank
Accounts
Y
Y|Initials and
date
SC
03/09/2024
SC
03/09/2024
SC
03/09/2024
SC
03/09/2024
SC
03/09/2024
SC
03/09/2024
SC
03/09/2024
SC
03/09/2024
SC
03/09/2024
SC
03/09/2024|
|---|---|---|
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|**_roups_**
8
Where applicable, check that the group accounts are consistent
with the accounting records of the parent and group undertakings
including any trial balance and any published subsidiary only
accounts.
9
Where necessary, follow up any matter for which it is not possible
to obtain information or reasonable explanations with the trustees
of the parent charity and/ or with the relevant member of the group
directly.|N/A
N/A|SC
03/09/2024
SC
03/09/2024|
|---|---|---|
## _**Groups**_
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