Company re8irtratlon number: 04422485 Charity regi5tratlon number: 1099878 TROS GYNNAL PLANT Workln8 Name TGP Cymru IA company Ilmtted by guarantee and not havln8 a share capitsl) REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Azets Audlt Services Chartered Accountants & Statutory Auditors Ty Derw Lime Tree Court Cardiff Gate Business Park Cardiff CF23 8AB TROS GYNNAL PLANT CONTENTS Report of the Trustees 1-17 Report of the Independent Auditors 18-21 Statement of Financial Activities 22 Balance Sheet 23 Statement of Cash Flows 24 Notes to Financial Statements 25-45 The following page does not forni part of the statutory finandal statements Detailed Income and Expenditure Account 46 TR05 GYNNAL PLANT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 The trustee5 present thelr report and flnanclal statements for the year ended 31 March 2023. The financial Statements have been prepared in accordance with the accounting policie5 Set out in note I to the financial statements and comply with the charlty's govemlng document. the Companies Act 21XJ6 and "Accountin8 and Reporting by Charities.. Ststement of Recommended Practi￿ applicable to charities preparin8 their accounts in accordance with the Financial Reporting Standard appllcable in the UK ond Republic of Irelond {FRS 102} leffertive l January 2019)" OBJECTIVES AND ACTivmES & ACHIEVEMEtITS AND PERFORMANCE OBJEcfs, VISION & MISSION Tros Gynnal Plant's charltable alms as set out in the Memornndum and Articles of Association are: Objects To relieve children and young people who ore in materlol, physlcal, mentol or emotional need. To promote the sound odmlnistrotlon of the low relotlng to chlldren ond young pe￿on$. V15ion Our vision is a Woles where every childl young person or odult identifies and expresses their needs, has the confidence to occess 5ervice5 when they need to. 15 hoppy* ¥alued, enjoy5 Posltlve nurturing relotionships belongs and is loved. Mlssion To be the leading Woles bosed charity working with children. young people. fomilies ondcommunitie5. To provide services that t7re sen51tive to soclol, linguistic and cultural needs. To ensure children. young people.fumille5 and communltle5 have t7 5uy in decisions that affect them. To bring about chonge that wlllbenefit chlldren. young people. fomilles. communities andsociety os o whole. INTRODucfioN 2022-23 was a less challènging year In tem1s of Covld 19 and Its Impart but It still remained in focus and Tros Gynnal Plant, like all other organisations. adopted how it work5 and how we operate across Wale5, Our portfolio of seNices for children, young people and families has grown wlth the addition of Parental Advocacy and we look forward to continuing to deliver quality, effertive serwlces across sectors and throughout Wales. We celebrated our 20, Anniversary as a charlty with a soclal media campaign and event at Sbarc, our new premises with guests invited from along the Tros Gynnal Plantjourney over the last 20 years Including Welsh Government Ministers, current and former staff and trustees, third and ststutorysector colleagues and users of our servlces. Duringthe yearwe piloted and consulted on ourworkingfrom Anywhere Framework andfrom l April 2023 this became standard working practlce, allowln8 our staff a degree of Choi￿ over where they work from on a daily basis. TROS GYNNAL PLANT REPORT OFTHETRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 We moved from our old. outdated Head Office premises to new purpose-built shared offlce Space wlth Cardiff University, which is proving beneficial in terms of networking and relationship building and offers flexibility for staff wanting to work from an office base. This yearwill see the retirement of our long-standing CEO and the transltion into the post of somebody new. We are confident that the new CEO will lead the organisation, with the support of Trustees and the Senlor Management Team, to develop and adapt, to ensure the sustainablllty of Tros Gynnal Plant and the continuation and expansion of our services. HOW OUR ACTMTIES DELIVER PUBLIC BENEFIT The scope of the organisation ha5 developed over many years to include work, not only with children and young people but also their families as tt was clear that for Some, the MO￿ effectlve change and positlve outcomes would only be achieved by a more hollstic famlly-based approach. All Tros Gynnal Plant services, whether with individual children or young people or famllles are free and delivered in Ilne wlth commlssioners or funders, guidelines, and compliment and work alongside statutory and other Services ensuring that we work in partnership not competition to maximise the reach and output of our own and other service providers. The portfolio of services provided by Tros Gynnal Plant ensures that the Trustees comply wlth the duty In section 4 of the Charities Act 2011 to have due regard to the Charity Commlsslon's published general and sub-sector guldance concerning the operation of the public benefit requirement under the act. STRATEGIC AIMS In the year ending March 2023 a new 5-year Strategic plan was adopted by the trustees and throughout this year Tros Gynnal Plant worked to the following strate8ic aims.. STRATEGIC AIM l. To establish quality services across Wales and to ensure that Tros Gynnal Plant develops as a leadin8 children's charity. 2. STRATEGIC AIM 2. To contribute to the development of policy and practice on children's rights issue5 at local, national and European levels. ensuring ihe voice of children and young people Is heard in the process. 3. STRATEGIC AIM 3. To develop training programmes and services which will improve understanding of children's rights issues and contribute to the standardisation. professlonallsm and quality assurance of advocacy and support services for chlldren and young people. 4. STrATEGIC AIM 4. To ensure that Tros Gynnal Plant has sufficient fundraising capacity to malntaln and develop its work on behalf of child￿n and young people and become less reliant on public fund5. 5. STRATEGIC AIM 5. To review and develop the organisation in order to ensu￿ that Tros Gynnal Plant is adequately structured to meet future demands and challenges. ACHIEVEMENTS AND PERFORMANCE 5trateglc Alm l- Servlces In the year ending March 2023 Tros Gynnal Plant worked with 2,000 Children and youn8 people including 18 unbom babies, 1,873 parents/adult family members and 285 famllles. Of those who responded to evaluation and feedback opportunities, 95% of service users reported that thev found the seNice they received helpful, while 86% of those who responded said that it had rnade a difference to thelr situation. TROS GYNNAL PLANT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023 Tros Gynnal Plant dellvered serv1￿5 bklin8ually in English and We15h and in 23 other languages Includln8 Kurdish Sarani. Kurdlsh Kumanjl. Kurdlsh, Badini, Pashto, Tigrinya. Oromo, Vietnamese, Sudanese Arabic. Arablc, Farsi, Dari, Turklsh, He￿ra. French, Portuguese, Czech, Polish, Russian, Slovak. Spanlsh, Romanian, Bulgarian, and Amharic. Tros Gynnal Plant dellvered the followlng servlces from Aprll 2022- March 2023: Independent Statutory Advocacyfor Looked After Chlldren Tros Gynnal Plant is the leading provider of Independent Ststutory thocacy in Wales, with Servi￿ level agreements with 13 Local Authorities ILA51. Tros Gynnal Plant's advocacy services work with children and young people to ensure their voices are heard In decision-making processes that impact upon their lives. Our Independent Professlonal Advocates support children and young people to attend meetings, write letters, speak to profession315 and foster carers, and strive to empower each individual by equipping them with knowledge and information they need- Includlng details about thelr rlghts and entltlements and a g￿ater understanding of statutory processes. Tr05 Gynnal Plant also provides specialist advocacy *Nices including Non-InstTurted Advocacy for Chlldren with complex needs and Ilmlted communlcatlon acmss the whole of Wales. Tr05 Gynnal Plant has an ongoing contract with Welsh Government to collate the statistics for the National Approach to Statutory Advocacy and the Actlve Offer of Advocary and Is now registered with the Care Inspectorate Wales for advocacy servlces and Is subject to inspectlon. In 2022123 Tros Gynnal Plant provided statutory advocacy seNlces to 924 chIld￿n young people helping them with over 2,387 issues. In addition, we provided the Artive Offer to 445 children and young people. Of those chlldren and young people providing feedback: 95% of young people said they found the service useful 81% of young people sald they now know more about their rights 88% of young people said they felt more included in decisions 91% said they would sjse the seNi¢e again. When explaining how advocacy made her feel more included in decisions, one young person sald: 'Because advocacyshowed me I should be,. When descrlblng how advocary made a difference to her situation, one youn8 person sald.. "Ifeel like I have o bit more 5Jy in the whole 51tuation. Being included in some meetings mokes mefeel like l um being heard out which is nice. Another Said: "lfrel confident about asking question5 Wlthout being scared to" ond .1 nowfeel confident when l join meetings with sociol seNices. I ct7n ask questlons os well." During thi5 year. we continued to develop our Non-instructed advocary provlsloned and we received some lovely feedback- '7hank youfor your report Samh. ft is on interesting reod and some goodpoints have been rtiised. It will be really helpful in informing his contortplon movingforward5 Qnd the observotions around hls confusion in interpretin9 emotions wereporticulorly helpful. Thanks agt7in. TROS GYNNAL PLANT REPORT OF THE TRUSTEES FOR THEYEAR ENDED 31 MARCH Z023 Advocacy In a Health Settlng Tros Gynnal Plant provide advocacy to children and young people under 18 wishing to make representation, raise a concern. or make a complalnt In relation to NHS services. The provision of advocacy for health issues is in keeping with our wider advocacy and organisational ethos- that of worklng wlth chlldren and youn8 people to empowerthem to have a voice. Tros Gynnal Plant advocated for 109 children and young people to ralse a health-related issue. Parent Advocacy SeNlces Tros Gynnal Plant. as well as supportlng children and young people to have a voice. also supports parentlcarers to have a voice and to be inVo￿e￿ in planning and decision-making. We deliver an impartial and Independent advocacy seNlce for parents and legal guardian5 of children/young people in the child protection arena. acr055 Merthyr Tydfil, Ynys Mon. Pembrokeshire and Rhondda Cynon Taf. We also sUPPOrt ethnically diverse parents who are in receipt of 5UPPQrt from social services. Advocary support is focused. targeted and tlme Ilmited. We help parents/carers build resilien￿, improve their circumstances and create sustainable thange. We support parents to effectively navigate systems and understand plans, expectations and agreed actions put in place by the local authorlty, wlth the deslred outcome for parents/legal guardlans to be empowered to represent their own voice and not to become dependent on the service. Tros Gynnal Plant Parent Advocacy Services worked with 105 parents. During the year we employed a full- time manager to lead our parent advocacy projects. In addition to the above-mentioned projects, we were also able to facilitate a number of spot purchase requests from LA'S across Wale5. We feel our reputation in this area became Increasingly established and ￿c08n1Sed by professionals in local a￿hOritieS and the legal sector during the year, resulting in a steady number of spot purchase requests. We also engaged with CASCADE regarding research into the impact of parent advocary. CASCADE are worklng with our Merthyr projett and we supported with evidence gathering from staff and parents. A total of 37 parents agreed to be contacted by CASCADE. All parents in receipt of parent advocacy, who provlded feedback, shared feeling listened to and taken more seriously by professionals following advocacy 5UPPQrt. They said they had a better understandin8 of their rights and entltlements, they better understood the Child Protection process and felt more able to self- advocate in the future, Famlfy Group Meetln8s/Conlerences. Tros Gynnal Plant has been achlevlng positNe outcomes for familie5 by providing good quolity Family Group Meeting services to local authorities across Wales since 2000. Family Group Meetlngs are a way of making decisions about children by involving the extended family in the planning and decision-making process and can be used with any family where plans or deci55ons need to be made. This has proved particularly effectwe when working with famllles reslstant to other setvices and interventions. Farni￿ Group Meetings have successfully been used wlth famllles at all stages of inte￿entIon including those famllles Involved in both public and private law proceedin85. and have consistently achieved positwe outcome5 ft)r all involved. TROS GYNNAL PLAKr REPORT OF THE TRVSTEES FOR THE YEAR ENDED 31 MARCH 2023 Tros Gynnal Plant is the largest provider of Famity Group Meeting Se￿IceS In Wales wtth contrdCt5 Wlth 5 local authorities- Bridgend, Merthyr Tydfil, Rhondda Cynnon Taf, Pembrokshlre and Neath/Port Talbot. In 2022-23 Tros Gynnal Plant had 248 new referrals for Family Group Meetings Involvlng 851 adult family members, 452 chlldrenlyoung people and 18 unborn babies Outcomes indude preventing chlldren golng Into care, ￿turning children home from care. creatin8 safe plans for children at risk, identifying alternatlve carerslplacements for thildren, facilitatin8 separated parents to make plans for their children. During the year, the RAFGM Team organSsed an Aftemoon Tea event Whe￿ family members, professionals and staff came together to celebrate the 5ucce55es and promote the RAFGM seNice. Representstives from Children's Services and Education were invited to attend along with Famlly Members, Albert Heaney (Chief Social Care OffKer for Walesl, Sarah Murphy MS and Tros Gynnal Plant Staff. Family Members shared their positive eXperien￿sof the FGM processand how it had helped them. Some of the famlly memberscontinue to support Tros Gynnal Plant and helped to develop and set up the 'Get Together Group, deslgned by and for family members that have accessed the service and had a FGM. The 8roup are given opportunitles to support wlth consultatlon work, partlclpatlon, Interviewing aNJ volunteering, Partldpatlon- Local Junlor Safeguardlng Boards and Brldgend Youth Volce Forum The Local Junior Safeguarding Board Safe Stars, part of the Mid and West Wales Regional Group called CADW, regularly engage with a group of 20 chlldren and young people. In 2022-23 young people from both Safe Stars and CADW partlclpated in an animation workshop and went on to produ￿ and launch an animation entitled "The Do's and Don'ts of Caring." This animation was launched at an event during National Safeguarding Week November 2022. The C4DW group have now been nominated for an accolade by Jake Morgan. Chair of Cysur Safeguarding Board. During the year, Tros Gynnal Plant tendered to facilitate a participation group linked to Corporate Parenting. The aim of the group is to allow young people to have a voice in the Bridgend Corporate Parenting Board, and to inform decisions by sharing their own experiences. The first Broup was held in December and between December and March the group was attended by 12 different young people during which they di5CUssed themes and areas important to them. They also decided on a name for the group Brid8end Youth Voice Forum" and along with the participation officer, planned what they would like to achieve over the next year. In this period, the group were consulted in the plannlng of the new Brldgend Corporate Parentlng strdtegy and We￿ involved in producin8 voiceovers for the launch of the plan which took place In April. The young people In the forum also chose the name for a new community residential home in Brid8end. When asked how they feel about being in the forum. young people told us "I love the group and the people in it. they all know how hard it can be being in care and leavlng care" "I feel my voice can make a difference.. and .1 always look fonwèrd and havlng thls group has saved me from deep depression" When asked what is important to them to inform group priorities, they told us "we are the experts and the ones in care or leaving care so should be ful￿ invofved" and "Other young people comlng into care will be happy and reassured I think that children and young people have been fully involved and not just the aéults sorting this stuff ouv.. TROS GYNNAL PLANT REPORT OF THE TRusfEES FOR THE YEAR ENDED 31 MARCH 2023 Independent Wsltors Tros Gynnal Plant provldes care experienced children and young people with an independent vlsltor, someone to be their friend and to be there forthem. All independent visitors are volunteers and are matched with one child/youn8 person, and undertake a monthly actlvlty wlth thelr matched chlld/young person. In 2022-23, 20 young people We￿ supported by an Independent Visitof. During the year, we recrulted a volunteer coordinator to cover the Cwm Taf Margannwg and Mid and West Wales region5. The postholder works four days perweek and her oversight of two regions ha5 enabled a large amount of targeted awareness-ralsing to take place. During thi5year, the North Wales Independent Wisitor Service were able to establish and support five ongoing matches with young people placed In the area. These monthly visits have included activities such as trips to the beachi go-kartingi afternoon tea and even a mini golf session on the Great Ormel Both the young people and the volunteers have provided positive feedback on these monthly meetings, suggesting in one case that the befrlending relationship has helped the young person to build trust in a male role model again, acce55 more opportunities for exercise and improve self**opinion**|We do not propose any modifications to our audit opinion which is unqualified.
We have no matters to report regarding the adoption of the going concern basis or
inadequate disclosures relating to material uncertainties.
Our audit work is substantially complete and there are currently no matters which would
require modification of our audit report, subject to the outstanding matters detailed
below:

Post May 2023 Board Minutes –_no further meetings held._

Matters to be discussed in section 5 of this report

Letter of representation

Trustee approval of the financial statements

Post balance sheet review| |---|---| |**Audit**
**approach**|We have reported our audit findings in section 5 and audit adjustments in section 6.
The impact on the charity’s results is £37,176.
We are pleased to report that the audit progressed well from our perspective and in
accordance with the agreed timetable.| |**Significant**
**audit**
**findings**|We are required to communicate all potential adjustments, other than those considered
to be clearly trivial, to management and to request that management corrects them.
There was one unadjusted misstatement potentially impacting both income and
expenditure noted.
Unadjusted misstatements can be seen in section 6.| |**Audit**
**adjustments**|We have applied our risk based methodology to your audit. This approach requires us
to document, evaluate and assess your business processes and internal controls
relating to the financial reporting process.
Our audit is not designed to test all internal controls or identify all areas of control
weakness. However, where, as part of our testing, we identify any control weaknesses,
we have reported these to you in section 7. No material weaknesses or significant
deficiencies were noted.| 1 ||~~Ay AZETS~~| |---|---| |**Internal**|The purpose of the audit was for us to express an opinion on the financial statements.| |**controls**|The audit included consideration of internal controls relevant to the preparation of the| ||financial statements in order to design audit procedures that are appropriate in the| ||circumstances, but not for the purpose of expressing an opinion on the effectiveness of| ||internal control.| ||Our audit is, therefore, not designed to identify all control weaknesses.| 2 ## **2. Significant risks at the financial statement level** Significant risks of material misstatement identified at the financial statement level, as set out below, are those risks considered to have a pervasive impact on the financial statements as a whole and potentially affect many assertions for classes of transaction, account balances and disclosures. ## **Fraud in management override** Procedures performed to mitigate risks of material misstatement in this area will include: - Review of accounting estimates, judgements and decisions made by management - Testing of journal entries. - Review of any unusual significant transactions. ## **Conclusion** No issues noted when testing journal postings and upon review of bank statements. ## **Significant risks at the assertion level for classes of transaction, account balances and disclosures** ## **Fraud in revenue recognition** Procedures performed to mitigate risks of material misstatement in this area will include: - Review and testing of income recognition policies. - Detailed substantive testing on material income streams. - Controls testing of a sample of transactions. - Review of the internal controls that are in place for each income stream. - Cut-off testing to ensure that income is complete. ## **Conclusion** No issues noted when testing income. ## **Going Concern** Procedures performed to mitigate risks of material misstatement in this area will include: - Assess the result for the year and its impact on free reserves. - Assess the assumptions of the 2023/24 budget for reasonableness. - Review the current level of bank balances held ## **Conclusion** No issues noted upon review of the going concern assumption. 3 ## **Other identified risks** Other identified risks are those which although are not considered to be significant will require specific consideration during the audit. Other identified risks are listed below: ## **Unidentified related party transactions** Procedures performed to mitigate risks of material misstatement in this area will include: - Discussion with management about the completeness of the related party transactions disclosure. - Review of accounting system to identify any undisclosed related party transactions. - Detailed substantive testing on a sample of trustee expenses. ## **Conclusion** No issues noted when testing related parties. ## **Classification of transactions to unrestricted/restricted funds** Procedures performed to mitigate risks of material misstatement in this area will include: - Obtain an understanding of the rationale of any transfers between funds and assess their reasonableness. - Detailed substantive testing of expenditure and assess the classification. - Detailed substantive testing of income and assess the classification. - Review of the accounting system to identify any unrecognised restricted income. ## **Conclusion** No issues noted when testing the classification of funds. 4 ## **3 Estimates and judgements** During the audit planning process we identified the following areas which require significant estimation or judgement. Our audit work consisted of reviewing these keys areas for any indication of bias and assessing whether the judgements used by Management are reasonable. **Defined** The liability is valued by a professional actuary. The charity use TPT **Benefit** to administer their pension scheme. No issues were noted with the **Balanced Pension** assumptions and estimations used to calculate the pension scheme **Scheme** surplus. The balance relates solely to funding received from Bridgend CBC – FGM funding. The funding was received pre pandemic, and due to **Deferred Balanced** delays in the charity being able to carry out work in line with the **income** agreement, Bridgend CBC has agreed to defer the funding to future financial period. ## **Conclusion** The estimation methodology is sound and balanced. 5 ## **4. Going concern** As auditors, we are required to “obtain sufficient appropriate audit evidence about the appropriateness of management's use of the going concern assumption in the preparation and presentation of the financial statements and to conclude whether there is a material uncertainty about the entity's ability to continue as a going concern” (ISA (UK) 570). Tros Gynnal Plant has prepared its financial statements on the going concern basis. Management believe that the financial statements should be prepared on the going concern basis as there are no indicators of any material uncertainties. Management’s assessment covers a period of at least 12 months from expected date of approval of the accounts ## **Audit work performed** ISA 570 (revised) specifies mandatory procedures that we are required to carry out on going concern. We have: - Assess the result for the year and its impact on free reserves. - Assess the assumptions of the 2024 budget for reasonableness. - Review the current level of bank balances held and the current value of the investment portfolio. ## **Disclosures** We have reviewed the disclosures set out in the notes to the draft financial statements – the disclosure is deemed appropriate. ## **Conclusion** We concur with management’s assessment that it is appropriate to continue to adopt the going concern basis and there are no material uncertainties relating to going concern which should be disclosed in the financial statements. 6 ## **5. Other observations** ## **Audit / Accounting issues – Prior year** |**No**|**Issues**|**Management Response**| |---|---|---| |**1**|**Recoverability of outstanding debtor balances**
It was noted during testing of the debtors balance that
there are still several balances outstanding 8 months after
the year end. These are as follows:
**Account**
**Transaction**
**Value £**
Merthyr Tydfil
CBC
4009/22 FGM referrals
Q4 Jan-Mar 2022
50,000
Miscellaneous
4064/22 Provision of
Parent Advocacy
Service Q4
50,000
Newport City
Council
Sgilliau Project Draw
down 2
102,774
Rhondda
Cynon Taff
CBC
EOY Invoice for shortfall
of actual outcomes for
21-22
36,902
Are these balances deemed to be recoverable?|The team continue to chase Merthyr CBC and Rhondda
Cynon Taff CBC. Local authority balances relate to project
funding therefore they are deemed recoverable.
The miscellaneous item relates to a bill from RCT which was
misallocated. This was received on 12/05/2022.
The Newport CC balance was paid in December 2022, agreed to bank
statement.
**2023 Update**
All now received.| |**2**|**Cost of Living**
The United Kingdom is going through a period of high
inflation and increasing energy prices due to external
marketpressures.|The budgets have been revised and reviewed to ensure they
reflect this.
Trustees and management continue to monitor the situation.| 7 |||Ay AZETS| |---|---|---| ||The impact of inflation and cost of living issues can
severely impact organisations due to increasing utility
costs, demand for increase in staff wages and pressures
of public to reduce spending.
What discussions/plans has the charity considered to
date?|**2023 Update**As in prior year the Trustees and management continue
to monitor the situation. In July 2023 we reviewed pay scales and in
the next meeting will review national living wage.| |**3**|**Post Year End**
We understand that in April 2022 as agreed previously by
the Board of Trustees the charity has invested and
additional £250K with Brewin Dolphin
We also understand that the sale of the charity’s head
office on North Road was completed in May 2022, with the
intention that the proceeds would also be invested in the
investment portfolio managed by Brewin Dolphin.
However, due to funders being slow to pay, the funds to
date have not been invested and have been used to
manage cashflow.
To be discussed.|As funders continue to be slow to pay it is best to keep the sale
proceeds in cash, but it is the intention to invest the sums at the
earliest opportunity.
**2023 Update**
A further £400K has been invested in the portfolio before the year end.| |**4**|**Recent Changes in Trustees**
We understand that there has been some resignations and
appointments of trustees at the recent meeting in
November. Currently these have not been updated at the
Charity Commission or Companies House.
For the changes to be reflected in the accounts submitted
to Companies House and the Charity Commission these
need to be updated with each regulator prior to
submission.
Trustees to confirm changes to be reflected at the|Companies House and Charity Commission will be updated.
**2023 Update**
No issues identified.| 8 AZETS re ulators and in the financial statements. / AZETS io ## **Audit / Accounting issues – Current year** |**No**|**Issues**|**Management Response**| |---|---|---| |**1**|**Debtors**
At the date of the audit the following debtor balances
remained outstanding:

Action for Children - £3,375

Branas Isaf - £9,745

Ceredigion CC - £10,327

Merthyr Tydfil CBC - £15,489

Fair Ways - £3,825

New Option - £ 5,786

MoF - £17,777|Merthyr Tydfil Balance has been paid.
MoF income if for costs incurred. We are in the process of setting up a
meeting with Oasis to discussed finalising this.
Ceredigion CC funding is recoverable.
The other balances will be chased up by the Finance Officer.| |**2**|**Banking Arrangements**
During the audit it was noted that the charity intends to
transfer the bank balances from the Unity Trust account to
a new account with NatWest.
Can the trustees confirm if there have been any updates in
this regard?|Nat West account has been set up. This will enable us to download
the bank feeds into Xero.
This will greatly assist in streamlining the finance operations.| |**3**|**Changes in Accounting Software and Payroll provider**
As discussed previously we understand you are in the
process of transferring from Sage desktop based
accounting software to cloud based Xero software.
In addition, we understand once this is implemented the
payroll processing will return to be dealt with in house.|The transfer to Xero has already taken place. The return to processing
payroll in-house will be undertaken shortly.
As noted above this is to assist in streamlining the finance operations.| 11 Can trustees and management provide an update? **4 Designated Funds** Previously the charity’s only designated funds related to the investment in fixed assets, in particular the head office Agreed – management and Trustees will consider balances to on North Road, Cardiff. designate. Since the property was sold in the year, the designated balances have been released to general funds. Therefore, there are currently no designated funds. Trustees should give consideration to designating funds to cover financial commitments (redundancies/project closure costs) and intended future costs such as IT development etc. 12 ## **6. Audit communication** ## **Materiality** Whilst our audit procedures are designed to identify misstatements which are material to our audit opinion, we also report to those charged with governance and management any uncorrected misstatements of lower value errors to the extent that our audit identifies these. Under ISA (UK) 260 ‘Communication with those charged with governance’, we are obliged to report uncorrected omissions or misstatements other than those which are ‘clearly trivial’ to those charged with governance. ISA (UK) 260 defines ‘clearly trivial’ as matters that are clearly inconsequential, whether taken individually or in aggregate and whether judged by any quantitative or qualitative criteria. An omission or misstatement is regarded as material if it would reasonably influence the users of the financial statements. The assessment of what is material is a matter of professional judgement and is affected by our assessment of the risk profile of the business and the needs of the users. ## **Accounting policies** The accounting policies used in preparing the financial statements are unchanged from the prior year. ## **Presentation and disclosures** Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the entity. We identified a number of reclassification adjustments and some minor presentational issues in the Group, and these have all been amended by management. Overall, we found the disclosed accounting policies, significant accounting estimates and the overall disclosures and presentation to be appropriate. ## **Fraud and suspected fraud** We have previously discussed the risk of fraud with management. We have not been made aware of any incidents in the period nor have any incidents come to our attention as a result of our audit testing. Our work as auditor is not intended to identify any instances of fraud of a non-material nature and should not be relied upon for this purpose. In the event that the trustees wish to obtain enhanced assurance with regard to the effectiveness of internal control in preventing and detecting fraud we should be happy to provide additional services. ## **Written representations** We will present the final letter of representation to the Board to sign at the same time as the financial statements are approved. ## **Related parties** We are not aware of any related party transactions which have not been disclosed. 13 ## **Confirmations from third parties** All requested third party confirmations in respect of bank confirmations have been received. 14 / AZETS 15 ## **6. Unadjusted misstatements** ## **Adjusted audit differences** We have set out below a reconciliation of the results disclosed in the draft financial statements to the management accounts/trial balance prepared by the client, as approved and authorised by the trustees during the audit. |**No**
**Detail**
**Assets**
**Liabilities**
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**Liabilities**
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**/ deficit**
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**Detail**
**Assets**
**Liabilities**
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**Assets**
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**Detail**
**Assets**
**Liabilities**
**Reserves**
**(Surplus)**
**/ deficit**
~~aaa~~| |---|---|---|---|---|---| |**Details of adjusted audit differences**||**Dr / (Cr)**|**Dr / (Cr)**|**Dr / (Cr)**|**Dr / (Cr)**| |||**£**|**£**|**£**|**£**| |1|Late adjustments|38,113|||(38,113)| |2|Depreciation|(937)|||937| |**Total**||37,176|||(37,176)| ## **Unadjusted audit differences** Our summary of unadjusted audit differences is presented below. We have discussed these with management and confirmed that all unadjusted differences are collectively and individually under materiality. |**No**
**Detail**
**Assets**
**Liabilities**
**Equity**
**Profit /**
**(loss)**
~~ee~~|**No**
**Detail**
**Assets**
**Liabilities**
**Equity**
**Profit /**
**(loss)**
~~ee~~|**No**
**Detail**
**Assets**
**Liabilities**
**Equity**
**Profit /**
**(loss)**
~~ee~~|**No**
**Detail**
**Assets**
**Liabilities**
**Equity**
**Profit /**
**(loss)**
~~ee~~|**No**
**Detail**
**Assets**
**Liabilities**
**Equity**
**Profit /**
**(loss)**
~~ee~~| |---|---|---|---|---| ||**Dr / (Cr)**|**Dr / (Cr)**|**Dr / (Cr)**|**Dr / (Cr)**| |**Details of unadjusted audit differences**|**£**|**£**|**£**|**£**| |1
Holiday pay liability||9,084||9,084| |**Total**||9,084||9,084| 16 ## **7. Internal controls** ## **Control environment** The purpose of the audit was for us to express an opinion on the financial statements. The audit included audit procedures. Our audit is not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify any control weaknesses, we have reported these to you below and overleaf. These matters are limited to those which we have concluded are of sufficient importance to merit being reported to you and that have not been reported elsewhere within this memorandum. |**Area**|**Assessment**|**Comment**| |---|---|---| |Control and
process
environment
**Adequate**
We consider the control environment within the entity to be
satisfactory.||| |Quality of
supporting
schedules
**Strong**
The supporting schedules received during the course of the
fieldwork were sufficient for our audit purposes.||| |Responses to audit
queries
**Strong**
Management’s responses to our audit queries were appropriate
and received on a timely basis.||| ## **Follow up on prior year control recommendations** As part of our audit process, we have specifically followed up on the recommendations either raised in last year’s report or carried forward from prior reports. |**No**|**Description of**
**Weakness**|**Risk Arising**|**Recommendatio**
**n**|**Management**
**Response**| |---|---|---|---|---| |**1**|**Debtor reconciliation**
It was noted during income
testing that not all bank receipts
after the year end have been
matched to debtors in Sage. For
example, the Welsh Government
debtor of £45k was received in
July 2022 but this wasn’t
matched to the debtor balance
until December 2022.|Debtor management will
be difficult if receipts are
not matched to invoices.
This potentially could
cause long term
recoverability issues if
aged debts are not
matched and therefore
not chased promptly.|Ensure that all receipts
are matched against
debtors and regular
reviews
and
reconciliations
completed.|Noted above that the
this balance has been
received and the
allocation has been
corrected.| |**2**|**Independent Care providers**
**income**
It was noted that the contracts
for Branas Isaf and New Options
were not renewed after they
expired in March 2021.
We understand that generally
contracts are effectively rolled
over as TGP continue to provide
services and the providers
continued to pay. However, it
would appear that New Options
have not continued to pay (the
last noted receipt was in October
2021).|Where a valid contract
or extension or
correspondence is not in
place, staff time and
costs could be incurred
which may not
recoverable should the
funder dispute arise.|Where practical signed
agreements or email
correspondence
should be received
from
the
funder
confirming
they
continue to require and
pay for the service.|The payments
from New
Options are
being chased.| 17 **There were no weaknesses identified during the 2023 audit.** ## **8. Independence and ethics** In accordance with our profession’s ethical requirements and further to our audit planning letter issued confirming audit arrangements there are no further matters to bring to your attention in relation to our integrity, objectivity, and independence. Partner has held the position of RI for a continuous period of over ten years. To mitigate the threat to auditor independence as a result of long association, we have involved an additional audit partner to review the work done by the partner and the other senior members of the engagement team and to advise as necessary / arranged an engagement quality control review of the engagement. We confirm that Azets Audit Services and the engagement team complied with the FRC’s Ethical Standard. We confirm that all threats to our independence have been properly addressed through appropriate safeguards and that we are independent and able to express an objective opinion on the financial statements. ## **Audit and non-audit services** The following services were provided in the year to 31 March 2023 and to 31 March 2022. |**Audit services**|**Fees 2023**
**excluding VAT**
**£**|**Fees 2022**
**excluding VAT**
**£**| |---|---|---| |Audit of charity|8,750|6,750| |**Total audit services**|8,750|6,750| 18