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2021-03-31-accounts

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Happy Faces Childrens Charity (Charity number 1101620)

Trustees Report for the year ended 31“ March 2021

I am pleased to report that we continued to meet our objectives of helping disadvantaged and disabled children in North Wales during the pandemic, despite the obvious difficulties. It is to the immense credit of all our wonderful Volunteers, Committee members and Trustees that the Charity not only continued to do so but also diversified, distributing food parcels and supermarket vouchers to the most needy families.

Our main income source, the Kiosk situated on Rhos on Sea promenade, was shut in line with Welsh Government instruction from March 2020 through to 21* June 2020, 24" October 2020 to 8 November 2020 and from 20" December 2020 to April 2021, a total of 201 days during this financial period, resulting in decreased income. However this was offset by three significant factors:

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It is also a tribute to our many, many supporters that donations of over £20k were received despite our main source of donations, the London Marathon being cancelled.

The Charities great work continued unabated, when permitted to do so, agreeing to fund eight appeals, most notably funding £22,190 for the purchase of a mini bus for Ysgol Pendalar, Caernarfon and purchasing sports equipment and a greenhouse for the Penrhos Avenue Education Centre, Colwyn Bay.

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Owing to ongoing Government restrictions on meeting people outside of your household only one Committee Meeting was held on 7 December 2020 though the introduction of the Happy Faces Committee app kept all members informed and able to contribute throughout.

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In addition to the distribution of food parcels and supermarket vouchers, the Charity also distributed over 1,000 toys to children at Christmas, 1,053 to be exact, which addressed some financial hardships and gave children joy during this unprecedented period. This again is a marvellous achievement and a great reflection of the driving force behind the Charity, Mr Ray Herbert M.B.E.

Special praise also for Denise Whittle, the Kiosk Manager, who was also heavily involved in all the Charities activities throughout the year and ensured the Kiosk continued to trade, when permitted to do so, despite the many obstacles encountered.

The Charity continues to remain strong, both financially and in terms of personnel where we are fortunate to have an excellent team who all bring their own area of expertise. To date Happy Faces Childrens Charity has given funds totalling £345,960 to very worthwhile appeals which has improved the lifes of many children in North Wales.

In conclusion, a year like no other, despite adversity it has again highlighted the commitment of all connected with Happy Faces and one which everyone can justifiably be proud.

Ny ed oeke. Alan Pollock Trustee

HAPPY FACES

UNAUDITED ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Charity No 1101620

HAPPY FACES

BUSINESS INFORMATION

Accountants

Harold Smith Unit 32, Llys Edmund Prys St Asaph Business Park St Asaph Denbighshire LL17 OJA

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HAPPY FACES

CONTENTS

Page
Accountants’ report
Profit and loss account 1
Balance sheet 2
Notestotheaccounts 3-4

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HAPPY FACES

DETAILED TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

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|||||||| |---|---|---|---|---|---|---| |2021|2020| |£|£|£|£| |Turnover| |Donations|87,453|96,054| |Gift Aid|15,427|-| |102,880|96,054| |Cost|of|sales| |Opening|stock and|work|in|progress|26,000|16,500| |Purchases|17,046|18,607| |43,046|35,107| |Closing|stock and work|in|progress|(29,500)|(26,000)| |(13,546)|(9,107)| |Gross|profit|86.83%|89,334|90.52%|86,947| |Administrative|expenses| |Wages and|salaries|(excl.|N.I.)|-|598| |Rent|9,912|10,341| |Room|Hire|and Show Expenses|30|12,972| |Insurance|1,266|3,210| |Cleaning|537|257| |Repairs|and|maintenance|1,714|612| |Printing,|postage and|stationery|2,325|5,281| |Advertising|514|2,759| |Hire|of equipment|2,650|3,828| |Entry|Fees|1,980|3,960| |Motor|running|expenses|1,260|4,598| |Appeals|43,034|24,283| |Accountancy|820|750| |Work|Clothes|114|124| |Sundry|expenses-|allowable|2,418|4,491| |Depreciation|on|FF & E|208|184| |Depreciation|on|motor vehicles|2,818|3,523| |(71,600)|(78,771)| |Operating|profit|17,734|8,176| |Interest|payable| |Hire|purchase|interest|(354)|(265)| |Net|profit for the year|16.89%|17,380|8.24%|7,911|

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HAPPY FACES

BALANCE SHEET

AS AT 31 MARCH 2021

2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 2 13,146 15,746
Current assets
Stocks 29,500 26,000
Cash at bank and in hand 21,166 1,793
50,666 27,793
Current liabilities
Trade creditors 709 675
Other creditors 9,612 12,570
10,321 43,245
Net currentassets 40,345 14,548
Total assets less current liabilities 53,491 30,294
Capital account
At 1 April2020 30,294 22,383
Capital introduced 5,817 -
Profit fortheyear 17,380 7,911
53,491 30,294

In accordance with the engagement letter dated 9 July 2018, | approve the accounts set out on pages1 to 4. | acknowledge my responsibility for the accounts, including the appropriateness of the accounting basis as set out in note 1 to the accounts, and for providing Harold Smith with all information and explanations necessary for their compilation.

Date : Wf’o|'

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HAPPY FACES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 a

1Accounting policies

1.2 Compliance with accounting standards

The financial information is not intended to achieve full compliance with the provisions of UK Generally Accepted Accounting Principles.

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment

on.a reducing basis of 10% per annum

Motor vehicles

1.5 Leasing and hire purchase commitments Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

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HAPPY FACES

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

a

2
Tanglble fixed assets		 2
Tanglble fixed assets		 2
Tanglble fixed assets		 2
Tanglble fixed assets
Fixtures, Motor Total
fittings
&		 vehicles
equipment
£ £ £
Cost
At 1 April 2020 2,188 17,614 19,802
Additions 426 - 426
At 31 March 2021 2,614 17,614 20,228
Depreciation
At 1 April 2020 533 3,523 4,056
Charge fortheyear 208 2,818 3,026
At 31 March 2021 741 6,341 7,082
Net book value
At 31 March 2021 1,873 11,273 13,146
At31March2020 1,655 14,091 15,746

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Although it is expected that the majority of work performed will be documented in schedules provided, the examiner may decide that additional testing
is required. This sheet provides a suggested index structure, which should be tailored to the charity's specific circumstances. The Jevel of additional
testing should be based on professional judgment and what is reasonable given the size and nature of the charity's activities.
Independent Examination Index
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A ACCOUNTS
Final accounts L CREDITORS & ACCRUALS
Final Journals Lead schedule
Draft accounts List of creditor balances ie
Typing instructions Accruals NO A >
Letter of representation Hire purchase
Letter to management
M LONG TERM LOANS Ms
B FILE COMPLETION = Lead schedule KV |
Completion memorandum |Bt
File completion checklist |B11 |~N PROVISIONS pal
Principal review rT sCsidCY Lead schedule NIA ae |
Trustees Annual Report |Bs|
Independent Examiners' Report | B4 | +O CAPITAL
Form and content of accounts | es Capital, Funds/Reserves and statutoryWm peor [|
Failure in adequate accounting records |Be
Whistleblowing - reporting to the Charity : | pet | P TAXATION
Commissioners NE
Assignment highlights re, &ys [| Summary of tax debtors ~\/P\
Summary of uncorrected misstatements Tax reclaims / correspondence )
Queries for principal |sd
Points forward to next year |_| +@INCOME Z
Observations on charity's operations == | Incoming resources WI/ F \
Senior/manager review | sd Dividends and interest received/receivable
Cleared notes and queries ; sis Rent received/receivable
C PLANNING
Planning memorandum R EXPENDITURE
Acceptance procedures Interest payable
Understanding the charity a ee Subscriptions and donations
Eligibility for Independent Examination Insurance cover and premiums _
Materiality summary Repairs and renewals WJ / PY
Points forward from last year TY Legal and professional
Budget and performance summary fs Entertaining
Time ledger printout | sd Sundry expenses
D ANALYTICAL REVIEW AND OTHER S STATEMENT OF CASH MOVEMENT
SUBSTANTIVE WORK Lead schedule and explanations |.| / -\ il |
Accounting policies, estimates and judgements | ot
Analytical Review |-D2.~——s«| ~Ss T SUBSEQUENT EVENTS
Review of accounting records and transactions | D3 Subsequent events - test objectives \) /\’ \» EC)
Events after the balance sheet date |Da|
Related party transactions | D5 __| _U VALUE ADDED TAX
VAT account
E GOODWILL/INTANGIBLES VATVAT checklistturnover reconciliations NWaAa /X = :
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Lead schedule [Ss Analysis6FVAT account | F FIXED ASSETS ~ V ACCOUNTS WORKING PAPERS Lead schedule Bank account | Additions and disposals ame Analysis of receipts | sd Depreciation - basic/calculation | ts—~sdzY Unrecorded receipts a - Grants received/receivable | Analysis of payments G Unrecorded payments INVESTMENTS IN GROUPS Cash account | _] Lead schedule Analysis of receipts = —_ ae H Analysis of payments ee a INVESTMENTSLead Petty cash account Po ,=] | schedule Cd Summary receipts/payments_ ~~ | sd J/ Wages, PAVE etc., sumpaahy" Ys “LeadLSTOCK AND WIP Creditorsé control accotintmi | sd schedule Ld Debtors control aécount | J w gccono necenen DEBTORS & PREPAYMENTS Surrimary of items aie | LeadList of schedule debtor balances i.X PROCESSING Bad and doubtful debts Year end trial balance Prepayments Journals K Nominal ledger printout BANK BALANCES & CASH Posting summary/data entry Lead schedule Opening trial balance Bank reconciliations sf Bank certificates SG |

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Client Name:Happy Faces Prepared by: "=a Dates —| <7 ad Ref:
Yearend@i=3-GQ)SSSSCSCiR wey Dateply,| ‘ |
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File number:H631

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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.
4. Approval for issuing Accounts for Signature
| 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.
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| authorise the issue of the accounts for approval.
Partner: S WAL 2 Date: '' | i | L 4
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  1. Approval for Signing the Independent Examiner's report

| confirm that: 1 The independent examination complies with professional standards and applicable legal and regulatory requirements.

| authorise the signing of the independent examiner's report.

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Partner: S Ww dua. ~> Date: , | Q [ 1 )
3. File Completion B1.1 Completed - YESING
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4. Trustees annual report B3 Completed - YESINO
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5. Format and Justification of Independent examiners report
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B4 Completed - YESING
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  1. Review of Accounts B& Completed - YES/| 7. Failure in accounting records B6 Completed - YES/NO 8. Whistleblowing to the Charity Commission B6.1 Completed - YES/NO S.A SS 9. Unadjusted errors B8 Completed - YES/NO

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Client Name:Happy Faces Preparedby: . Cc Cate: | CR:
Yearend3in3-QQU Reviewed by: Date: a f eya, | BA
File number:H631
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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.

CC 32 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).

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oe
1 Has the Planning memorandum (IE C1) been satisfactorily completed? sehe Sa iJ
E> St =
2 Have any risks identified at the planning stage been appropriately considered and adequately minimised? Mesfe S y eran |
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? Np=(eSa \yec
5 Have all final journals been recorded and processed to producea 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 4. < =
supporting disclosures. FeS j rr o
Has the analytical review been fully documented (IE D2)? (CC32 Direction 3) fT
6 Have all queries and problems been properly cleared or carried forward to points for principal/highlights? , —
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 Fai
discussions with the charity's trustees and the charity's staff) been placed on file? (CC32 Direction 3)
7 Does the file contain evidence of ‘principal’ review?= Ling hkrN . 4 «|/AD
8 Have all principal review points been cleared? _ \
9 Are the terms of engagement still appropriate and has the appointment been confirmed in a communication Ws =
with the trustees? (CC32 Direction 3) f€ = 1eT)
10 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? a |es= DRIDwat
141 Have all matters of concern been resolved and documented with the trustees and charity staff, together with wr
details of any subsequent verification procedures used? (CC32 Direction 3) ;| £S AD
12 Has the justification of opinion form (IE B4) been completed? VAD
13 Has a letter of representation been drafted confirming all relevant representations? JAD
14 Has a budget been set for next year? \_) IC
15 Has the whistleblowing checklist (IE B6.1) been completed? \AO
146 Has the client complied with the firm's money laundering procedures? > el =
147 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) TES Ve x 5
18 Have schedules C1.1 (Acceptance procedures) and C3 (Eligibility for an independent examination) been Lp =
fully completed? (CC32 Direction 3) les { VAD
19 Has a copy of the trustees’ annual report been placed on file, where accruals accounts are prepared? (CC32 Lp,
Direction 3) kk S JAD
20 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 XS1es Te
Commission? (CC32 Direction 3) - ifXD) :
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Client Name:Happy Faces Prepared by: _ aad \i Date: SIQQD | Ref:
YearFile number:H631 ends -<D___[Revewedby, qa Daieve9 fa, |
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Trustees’ Annual Report

Objective: to obtain sufficient evidence that the trustees' annual report is consistent with the accounts.

CC32 Direction 12: Compare the trustees’ annual report (or for a charitable company the combined trustees’ and directors’ report) with the accounts, Compare any narrative information or figures in the trustees' annual report with the accounts in order to identify any material inconsistency between the trustees‘ annual report and the accounts.

(a) review of charity's activities; (b) developments during the year;

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Covered by Results Ref/comments Initials
accountancy Y/N | satisfactory and
YIN date
Y
J
Vee &
VIA.
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Client Name:Happy Faces Prepared by: \Os(™>)\-&.
Year end:31- 2-~Q)) Reviewed by: Date: ; | ota, |
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Ref:
B4
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File number:H631

Format of Independent Examiners' Report, Including Justification of Opinion

The purpose of this form is to ensure that there is enough evidence to show that the independent examiner has considered the form of opinion to be given, and that the report gives the information required by the Charities Act. The independent examiner should comment on any problems and indicate how the opinion is affected.

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CC32 Direction 13: Review the conclusions from the independent examination and prepare and sign the independent examiner's report.
The content of the report must cover all the matters required by the 2008 Regulations. If the examiner has identified a matter of concern
because one or more of the specific matters listed in the 2008 Regulations or in this Direction are present or remain unresolved then the
examiner must bring it to the attention of trustees in their independent examiner's report.
Initials
1 Does the reporte clearlyy state the name of the charity and the financial yyear? (Yes/Noce JPYDaX T™
2 Does the report state that it is given in respect of an examination under s145 of the Charities Act 2011
and in accordance with the Directions given by the Commissioners under section 145(5)(b) of the
Charities Act 2011? (Yes/No= \f = cs
3 Where the charity whose accounts are being examined is a company, does the report confirm that the
accounts are not required to be audited under Part 16 of the Companies Act 2006? KjSyIX >)
Yes / No ——
4 Are there any indications that:
(a)a adequatedequat accountingting recordsrecords hhave nottbbeen maintainedintained; (No?>>) Yes fa)\Wat +)>
(b) the accounts do not agree with the accounting records; \wo}— Yes C \Faos\
(c) the accounts do not comply with the regulations on form and content for
accruals accounts; (No Yes a i
(d) where the accounts do not comply with the SORP due, in the opinion of the trustees, to the
‘true and fair’ override, has this fact been noted in both the accounts and examiners report? :
(noyYes «\‘-\b a
5 Is there any other matter which should be brought to attention to enable a reader = ;
to reach a proper understanding of the accounts? ‘No/ Yes l ) > )
6 Is there any material expenditure or action contrary to the governing documents of the charity? yO ‘
(No Yes 4 YE )
7 Have you been unable to receive all information and explanations that you deem necessary?
\ Yes No JAY)
8 If relying on the work of others in undertaking the independent examination, are you fully satisfied with : 7 -
their work and that the work has been fully documented? Yes/No > ) -\ )
9 Is there any evidence that accounts prepared on the accruals basis are materially inconsistent with the
trustees’ annual report? (Ves= Dio \v >( J
10 Does the report give the independent examiner's name, address and any relevant rIo~
professional qualifications or professional bodies of which he is a member? NI! Yes /No
11. If the gross income of the charity exceeds the sum specified in section 145(1)(a) of the Charities Act
2011 (currently £250,000), does the report specify the basis on which he qualifies to act as independent, ~~.
examiner in accordance with that section? K VA
Yes /No
12 Inthe event of the independent examination being allowed by dispensation in place of an audit, does.
the report specify the date when the Commission dispensed with the requirement from an audit? N/K +
Yes / No _
13 Is the report signed by the examiner and dated? - :
(Yes¥no = JA
14 Have you:
(a) reported matters of material significance direct to the Commission? (see Whistle blowing , ; y 5
checklist on ChiE - B6.1) Nr Yes /No
(b) exercised discretion and reported relevant matters direct to the Commission? VO
(7 > Yes/No
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Client Name:Happy Faces Prepared by: OC! 2 Date! ©) ; ») «}) Ref:
Year end:31-3.9\ Reviewed by: § a. » Date: fy (er | B5
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File number:H631

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.

Further quidance is provided online

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Covered by Results Ref / comments Initials
accountancy Y/N | satisfactory and date
YIN
41 Consider the accounting and disclosure
requirements of: F ju 2
(a) The Charities (Accounts and Ns7 wo
Reports) Regulations; 3, Be WD
(b) SORP - Accounting and Reporting X
by [Charities;] f 7 My .
ie :
(c) Charity Reporting and Accounting: yf Y Py D
the essentials (CC 15d)
(d) Receipts & Payments Accounts Y ¥ Veo
Pack (CC16)
2 Complete the appropriate specialist disclosure t \
checklists. ha wi Y~—HrPr
3 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 K : } =
charity are correctly identified.
4 Where accruals accounts are prepared, check
that they comply with the SORP and applicable : iy glia ome
accounting standard. Sm | =I \ a >
5 If the charity is a company, check that the
accounts also comply with the applicable \ \ es
company law requirements.
6 Note any implications for the examiner's report _
and for separate reporting to the Commission \ it =
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Client Name:Happy Faces Prepared by: SCA ‘= Date: - Cx 2 I Ref:
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Failure in Adequate Accounting Records

Objective: to obtain and record sufficient evidence fo provide a reasonable basis for the identification of any material failure to maintain such records.

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CC32 Direction 5: Check that accounting records are kept to the required standard and in compliance with the relevant legislative requirements.
Review the accounting records maintained in accordance with section 130 of the Charities Act 2011, or, in the case of a chanity that is a company, the accounting
records maintained in accordance with section 386 of the Companies Act 2006, in order to provide a reasonable basis for the identification of any material failure to
maintain such records and any material misstatement of transactions in those records,
Covered by accountancy Y/N Results Ref/comments Initials
satisfactory and
YIN date
1. Review accounting records to ensure that they: Ly \e
(a)(b) arearestandard; well complete organised; and kept to the required YY/ wf JAD 4
(c) are capable of ready retrieval and —oF A7 als)aeD
analysis;
(d) are up to date at the time the accounts /
are prepared;
(e) are readily available; and / if i > L p
(f) ascertaiperiod e n thed and fina a n cialy selected positiondate. at the Yy( 7 ~yA Cj
2 (a)Ensure thatdetails of the accounting all moneyrecords receivedcontain: and —i NEf J\ Cc
expenditure paid with date and nature of
transaction; ie
‘ yn,
(b) details of assets and liabilities (which a ‘ bs | I * \ D
could simply be files for unpaid invoices if
and amounts receivable for smaller
charities) at the end of the reporting
period; |
(c) aand record of stocks and fixed assets held; UY Y JAY |
(d) if the charity has one or more branches |
which are administered separately but > 2 —
are part of the charity, the details of the 4 \ \‘ a) >
income and expenditure and any assets .
and liabilities of each branch.
3 Ask(a) the trustees: YY yy Row2 : ;YDbe ,
how they ensure the accounting records i 7 ales Eee t—— ir
are complete; Herc a
(b) if their approval has been obtained for \ J
(c) during the examination;anyif theycorrectionscarried outmadea reviewor recordsof the created - aw~yer!: \OW’”"=
charity's internal financial controls in the
year reported.
4 Charitable companies dealing in goods must
ofmaintain the Companiesstock records Act 2006.as set out in section 386(4) NJ j i/o
5 Note any implications for the examiner's report and
for separate reporting to the Commission. NJ eo
6 Other tests:
NIP |
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Client Name:Happy Faces Prepared by: \o—y—~) | Dates SIGS) |_| Ref:
Yearendst-QCQl(Reviowedby: BG.
File number:H631
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Whistleblowing - Reporting to the Charity Commissioners

Sections 156(2) of the Charities Act 2011 places a duty upon the independent examiners of both the non-company and company charities fo 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.

Further guidance is available online.

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Yes/No
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The Charity Commission have identified the following nine matters of significant concern which are of material significance to the work of the Charity Commission and so give rise to a reporting duty.

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1 Matters suggesting dishonesty or fraud involving a significant loss of, or a material risk to, charitable funds or assets.
1.1. False accounting, theft or misappropriation by any charity trustee. FY
1.2 Evidence of theft or misappropriation by any employee, volunteer, agent or third party not reported to the police authorities or the
Commission.
1.3. 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 s178 Charities Act 2011).
2 Failure(s) of internal controls, including failure(s) in charity governance, that resulted in, or could give rise to, a
materialrisk. loss or misappropriation of charitable funds, or which leads to significant charitable funds being put at major N]
2.1 Receipt by any charity trustee or connected person of any remuneration, benefits or other financial advantage without proper
powers or consents.
2.2 Failure to hold trustee meetings or otherwise to properly control the charity's affairs. PY
2.3. Gross failure to keep accounting records, such that the auditor is unable to express an opinion on the accounts. rf
2.4 Evidence of indifference or recklessness on the part of the charity trustees. fF
2.5 Failure to take professional advice without due consideration. fF
2.6 Functions delegated to third parties are not monitored and controlled. fF
3 Matters leading to the knowledge or suspicion that the charity or charitable funds, including the charity's bank - l
account(s) have been used for money laundering or such funds are the proceeds of serious organised crime or that the NJ
charity is a conduit for criminal activity.
3.1. Material applications of funds clearly outside the charity's objectives. Fs
3.2 Deliberate or reckless investments or other actions contrary to the trusts of the charity. FP
4 Matters leading to the knowledge or suspicion that the charity, its trustees, employees or assets, have been involved in
or used to support terrorism or 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. J
5 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 were put at significant risk of abuse or mistreatment. N
6 Single or recurring breach(es) of either a legislative requirement or of the charity’s trusts leading to material charitable |
funds being misapplied. NJ
6.1 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.
6.2 Attempts to evade direct or indirect tax. fF
7 Evidence suggesting a deliberate or significant breach of an order or direction made by a charity regulator under
statutoryconsent onpowers particularincluding terms involvingsuspending significanta charity charitabletrustee, prohibiting assets or liabilities.a particular transaction or activity or granting )
8 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 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. IN
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9 Evidence that significant conflicts of interest have not been managed appropriately by the trustees and/or related party
transactions have not been fully disclosed in all the respects required by the applicable SORP, or applicable )
Give Regulations. KO
details 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 Commission.
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Client Name:Happy Faces Prepared by: \YO\ © Dates C/S7.) | Ref:
Year end:3143 .2)| Reviewed by: , _ ., Date: 4, J p ya, B8
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File number:H631

Summary of Uncorrected Misstatements

Only those misstatements that are not regarded as clearly trivial should be recorded on this schedule. When considering whether a misstatement is material the practitioner should consider size, nature and circumstances.

Final materiality:

Considered clearly trivial if below:

Narrative SOFA (I&E) Balance sheet Dr Cr Dr Cr el ns a a, eenD\ al aA ee a Conclusion

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Client Name Happy Faces Prepared by Ref
Year end:31-3--£ Reviewed by: C1
File number:H631
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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 fo 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

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8 The staff assigned have been adequately briefed.
Partner: 4 in f i
2. Acceptance / continuance Acceptance / continuance / continuance continuance
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Partner: 4 in f i Date: , | ¢ | he
2. Acceptance / continuance Acceptance / continuance / continuance continuance C1.1 Completed \ vey) NO
3. Scope of engagement
4. Understanding the charity C2 Completed Wey NO
5. Eligibility for Independent Examination C3 ga a
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6. Materlality C4 Completed -°
7. Identified risks and engagement approach
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8. Administratlon

Ey

i

a

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Client Name:Happy Faces Prepared by, \—y~})
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Date: C/K). | Ref:
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File number:H631

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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 charily trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts’.

Direction 2 of CC32 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.

The current Ethical Standard can be found at:

Croner-i Tax and Accounting Online - FRC Ethical Standard (2019)

Note whether advantage being taken of the Provisions Available for Audits of Small Entities (ES Section 6).

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YES / NO
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Yes
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No
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1 Undue dependence ona client
Paragraph 4.31
Do the total fees for this client/group of clients exceed:
i) 10% of the annual fee income of the audit firm or the part of the firm by reference to ess el ia
which the engagement partner's profit share is calculated?
ii) 15% of the annual fee income of the audit firm or the part of the firm by reference to [sd
which the engagement partner's profit share is calculated?
ili) Taking into account the firm's own policies (which may be tighter than those in the ES),
greaterhas the threatfirm identified to the firms’that independence,the audit engagementfor exampleposes dueor could to its prestige orbe seen to otherpose, a a
factors?
iv) acceptableHas the firm level?followed its internal procedures to ensure that any threat is mitigated to an eea
v) Have any fees for this client been set on a contingent fee basis? [| ae
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2 Loans to or from a client; guarantees; overdue fees
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Paragraph 2.20
Paragraph 4.11
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a) guaranteesDoes the firm, to orcovered from thepersons client?or persons closes associated with them, have any loans or
b) Are there any overdue fees for any services?
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Lrd
[sd
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: | E| E

t

;

3° Goods and services: gifts and hospitality

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Paragraph 4.40[ meal
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favours,Have you,including any coveredhospltality, personsfrom or personsthe charity, closesunless associatedan objective, with them,reasonable accepted and anyinformed gifts orthird party would consider the value thereof as trivial or Inconsequential?

Have you offered gifts, favours or hospitality to the audited entlty or Its management (unless an objective, reasonabte and Informed third party would consider the value thereof as trivial or inconsequential)?

4 Litigation

Paragraph 4.46 : work [sd cet

Is there any actual orthreatened litigation between yourself and the client in relation to fees, work relating to the independent examination, or other work?

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5 Family or other personal relationships
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CC32 Direction 2, 2.9

Paragraph 2.59 Do you or any of your staff have any personal or family connections wih the charity and its officers? [|

6 &x-partners or senior employees

Paragraph 2.37

a) Has any officer of tha company been a partner or sentor employee in the practice? | b) withs thethe partnerclient? or any senior employee on the audit joining or involved in substantive negotlations VY Cc) Does the firm currently have any staff ‘loaned’ to the entity, or have any returned to the firm on completion of a foan assignment?

t

7 Mutual business interest

Paragraph 2.3

Do you or any of your partners or staff have any mutual business interests with the charity or with an trustee or employse of the charity?

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[i mall
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8 Benefictal interests and trusteeships

Paragraph 2.18

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:

d) Any trusteeships in a trust that holds shares in an audit client?

9 Associated firms

Are you or your staff associated with any other practice or organisation which has any dealings with the company?

10 Long association

Paragraph 3.1 ;

a) Have partners or staff in senior positions had a long association with the entity?

b) Have any long association safeguards applied been communicated to the cllent entity?

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a
Le
ca
pL
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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) Arefirm? any services in relation to the management of the charity performed by the firm or a network [sd Ley
b) Are any accounting services performed for the charity such as preparation of the statutory : [
accounts from trial balance, bookkeeping or payroll services?y | “al COKS ne >
c) Do the accounts include any specialist valuations carried out by the firm or a network firm
(including actuarial valuations and valuations of financial instruments required by FRS 102)? A
,
d) Are any internal audit services provided by the firm or a network firm? [sd
e) Are the firm or a network firm currently acting for the client as an advocate in any 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 of any [|
IT systems?
g) workDoes thefor the firmclient? or a network firm provide advice on taxation matters or undertake tax compliance [|
h) objectivityHave any otheror independence? services been provided to the client that may cause a threat to the firm's [| ia
12 Adequate resources and proper performance
(a) Are there any indications that the engagement team is not competent or does not have the
necessary time and resources? Ae
(b) Are there any indications that the firm or engagement team will not be able to demonstrate Vv
compliance with ethical requirements?
(c) Are there any aspects of the client, or other factors, that will adversely affect the firm's ability to [|
perform the examination properly?
(d) withAre theregovernance any issuesof the concerningentity? the integrity of the trustees, key management or those charged [|
(e) 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?
(f) Where gross income exceeds £250,000, the examiner is required by the Charities Act 2011 to [| |
case.be a member of one of the recognised accountancy bodies. Answer 'yes' where this is i aa
(g) Do you consider that the examiner does not have relevant practical experience of charities? [sd a
(h) Do you have any concerns that the examiner is not sufficiently skilled to carry out the [ reo
examination and, where required, does not have confirmed membership of a listed body?
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F

13 Cilent integrity

Are there indications that the client lacks integrity, Including:

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a
|
7
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f

{ 4 |j ‘ : ! ‘ ; i

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14 Other circumstances
Confirm that there are no other circumstances In the examiner's judgment that would reasonably lead to| [7]
the perception that the examiner is not independent.
Answer ‘yas’ if there are such circumstances.
15 ineligibility
If applicable, have you informed the trustees that you are not eligible to carry out the [| CI
independent examination
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Provide any details necessary relating to the above questions:

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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 abillty to perform the examination properly.
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anl
“ ( Prepress evn TQ
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Conctusion Having regard to any safeguards identified above, | am satlsfled that appropriate procedures regarding the acceptance and continuance of this client relationship have been followed, and that the conclusions reached in thls regard are appropriate and have been properly documented. In arriving at this conclusion | confirm that | have:

d) documented the conclusion on Independence and any relevant discussions within the firm that support this view.

e) informed the client of alt significant facts and matters that bear upon the firm's objectivity and independence.

Partner.

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Date:
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Consultation (to be completed where appropriate) In my opinion the steps proposed are sufficient to maintain Independence and to ensure the availabllity of resources and the abllity to perform the examination properly and in a wholly objective manner. Partner. Date:

j

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| | | | | | | |

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Client Name:Happy Faces Prepared by: - voalic Date: Cy IS a | Ref:
Year end31-3-<Q) Reviowedby yay 02
File number:H631
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Understanding the Charity

CC32 Direction 4: In order to plan the specific examination procedures appropriate to the circumstances, the examiner must obtain an understanding of the charity's constitution, the way the organisation is controlled and managed, whether action has been taken on any previous recommendations for improvement, the accounting records and systems, the charity's structure, funds, how fund balances changed in the year, and the charity's activities in the year and spending and the financial risks the charity faces.

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Initials and date
General1 ; yah
Review the charity's governing document, particularly the charity's =
objects, powers and obligations. Ensure that the governing document Cc) / ra al
does not specifically require an audit.
2 Discuss the following with the trustees and, where appropriate, the
charity's staff:
(a) structure and organisation of the charity;
(b) how the charity seeks to achieve its objeq =
(c) developments during the year; ( \ t ) 1B)
(d) funds managed and how fund balances Par
changed in the year; OK A
(e) events since the balance sheet date;
(f) special circumstances and problems
affecting the charity;
(g) policies and procedures concerning risk;
(h) any major risks the charity is facing.
3 Review the minutes of trustees’ meetings to identify major events, ( Nr»
plans, decisions and changes to the trustee body. Am
4 Ascertain the accounting system, particularly the accounting records —
maintained and the procedures for recording financial transactions. ( Ws)
AISA
5 Consider the financial risks identified and, where accruals accounts AD
prepared, consider whether the trustees have evidence that shows Ld _
that the charity is a going concern. I IS Jedd
6 Does the Covid-19 pandemic present any additional risks, whether : AD
fraud related or other, that have not been considered elsewhere. Nore O ne
7 Note any implications from the examiner's report and for separate WD
reporting to the Commission. =Ne J QkAN<Je<|
8 Review whether any areas for improvement were advised to the ;
trustees in the previous year's independent examiner's report (or audit ( SAD
report and management letter) and look to see if any action has been
taken. CET 2|
9 Ensure specific examination procedures are planned appropriate to > »
the circumstances of the charity. Reas : a tent ieee 7
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10 Update the permanent file for the above.

ee |

| ‘ )

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Client Name:Happy Faces Prepared by: - \ €. Date: ¢ |S s [ y Ref:
Yearendst-S-a) ___[Reviewedby”{ cs
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File number:H631

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.

CC 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.

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Planning - | Final - Initials and date| Ref/comments
Initials and
date
According to the information contained in the accounting records and ieee oh
discussions with client: Pr ) Ww —
1. Checked the charity audit threshold applying to the accounts to be , Xx) .
reviewed. ¥ oe , WY
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  1. 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.

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For accounting periods ending on or after 31 March 2015, confirm
that:
(a) gross income is over £25,000 and not = | “7 “~ WAXD
more than £1m; or yr alee
(b) gross income does not exceed £250,000 if _ =
the aggregate value of total assets (before| \)/VA y > {>
deduction of liabilities) exceeds £3.26m
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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.

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |3|If the|charity|is|using|the|receipts|and|payments|basis:| |(a)|Confirm|that the gross income|is|less than}|-Y)||.|>\)| |£250,000;|and|=| |(b)|Confirm|that|it|is|not a|charitable|—| |(c)|Confirm|that|there|is|no|requirement|to| |prepare accruals accounts|in the charity's|ao.|xX )| |governing document or for any other|Kf sa|i\|)|q|¥ ||;| |reason.| |(d)|If applicable,|informed|the|trustees|that| |the|charity|is not eligible to prepare|We>2|;|fa= »|:| |receipts and payments|accounts.|@||:||5| |4|—|Confirm|that gross|income|includes|total|recorded|income|(before| |funds,deductionbut|ofnot any resources costs orreceived expenses)as|incapitalall|restrictedfunds|(e.g. andreceipts unrestrictedof|x\7 )|5| |loans,|( ¥|ye0| |proceeds|of sale|of investments|or fixed|assets).||)| |5|Checked|an|audit|is|not|required|for any other reason|and|confirmed| |that the charity|is eligible for independent examination.|If not eligible|=|P|<>|;| |for independent examination,|inform the trustees accordingly.|‘de|>|ie|is| |ee|ae| |6|Confirm the charity's governing document does not specify any form|- >|>:| |of professional|audit.|\e|| |7|—|Confirm|that there are no grant conditions which demand an|audit by|nay|as|>| |reviewing major grants.|:|‘|} ces| |8|If the|charity has one or more subsidiaries confirmed|that group|ae|ade|<)| |9|accounts are not required by law.|ye|3 —N| |hasIf acharitable been made. company,|checked that the audit exemption statement|yeOr|OFS5G:Si.|

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Client Name:Happy Faces Year end:31- 3 ~

File number:H631

| | |

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Ref:
D1
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Accounting Policies, Estimates and Judgments

Objective: to consider whether accounting policies conform with fundamental accounting concepts, are consistently applied and are appropriate to the charity's activities. Also to consider the reasonableness of any significant estimates orjudgments made in the accounts preparation.

CC32 Direction 8: Check the reasonableness of the significant estimates andjudgments and accounting policies used in accounting for the types of fund held and in the preparation of the accounts.

When accounts are prepared under section 132 of the Charities Act 2011, or in the case of a charity which is a company, prepared under section 396 of the Companies Act 2006, review the accounting policies adopted and consider their consistency with the Statement of Recommended Practice: Accounting and Reporting by Charities and their appropriateness to the activities of the charity. The examiner must also consider and review any significant estimate or judgment that has been made in preparing the accounts. (Not applicable to Receipts and Payments Accounts.) Further guidance is provided online

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Covered by Results Ref/comments Initials
accountancy satisfactory and
Y/N Y/N date
1 Check with the trustees that the separate funds of the
charity have been correctly accounted for and YY —~
reported correctly in the accounts. yu
2 Check the reasonableness of any significant
estimates or judgments that have been made in Ros{ Canc a
preparing the accounts. | IN\/ A ev
3. Consider whether the accounting policies comply
with the accounting framework and applicable law. “4. Fj; x»);
: j
4 If the receipts and payments basis is used, ensure
that accounting policies are applied consistently (the :
other concepts below are not applicable in these YY ¥ oP ;
circumstances). a)
5 Review the following, if material to the accounts, for
reasonableness:
(a) the accounting policies follow those of the Ng _
SORP and that any departure from SORP 7 / Wey
only arises because the alternative
. approach provides a more ‘true and fair'
view;
(b) the accounting policies are appropriate to i : yy
the activities of the charity; i r
(c) transfers to or from restricted or designated 9 ; oD
fund accounts; i re
(d) valuation of gifts in kind; ie P pw
(e) valuation of fixed asset investments where Y ? - ‘)
(f) estimatesno market pricesresulting exist;from transactions not My 7 ye7
being fully recorded in the accounting 7 rd yd
records; and .
(g) withinactivities.the SOFA, the allocation of costs to Yy/ ¥ : W OLDe : '
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6 Check that the accounts were prepared on a going LJ wr ae
concern basis 7 7 _
7 Ensure that valuation methods for assets and
liabilities comply with SORP. \o[ N/A)< ))OrS)
8 Note any implications for the examiner's report and -
for separate reporting to the Commission. \ NO, jAe,
W/E ‘i
9 Other tests:
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Conclusion

Subject to the matters highlighted on the Completion Memorandum (B1)*, in my opinion, sufficient evidence has been obtained from the checks recorded overleaf to conclude that the accounting policies are reasonable and conform with the fundamental accounting concepts, are consistently applied and appropriate to the charity's activities, and that significant estimates or judgments are reasonable.

Preparer:

Date:

Reviewer: * Sow Nite g

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Date:
ie 9 [ MA
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Delete if not applicable Alternative conclusion (ANY alternative conclusion MUST be referred to on the Completion Memorandum (B1) schedule).

Preparer:

Date:

Reviewer:

Date:

|

| |

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Client Name:Happy Faces Year end:311.3-62| File number:H631

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Ref:
D2
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Analytical Review

Objective: to identify unusual items or disclosures in the accounts.

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CC32 Direction 11; Identify items from the analytical review of the accounts that need to be followed up for further
explanation or evidence.
The examiner must carefully consider if, during the course of their examination, items were found that were material to the
accounts which need further explanation or supporting evidence. If the examiner is concemed that the charity's accounts
could be materially misstated then the examiner must undertake sufficient additional work to be satisfied that any such item
has been explained and correctly included in the accounts. The examiner must be alert fo any related party transactions
that require separate disclosure in the accounts. Where the examiner is not satisfied on any item then the examiner must
refer to it in their independent examiner's report.
Further quidance is provided online
Covered by Results Ref/comments Initials
accountancy | satisfactory and
YIN YIN date
1 (a)CompareEnterthe fileaccounts numberwith: “=7 * | heenAAD
(b) budgets and forecasts to identify unusual
items, unexpected fluctuations or \
inconsistencies with other financial information. WA yYAD
2 Consider whether: =
(a) oo : yp VA)
incoming resources are consistent with known / v J
fund-raising activities and the charity's ,
objectives; :
(b) spending of charitable resources is consistent ¥P WY ¥\ ; J 4i)
with payroll details, and the activities and
objects of the charity;
(c) theliabilities scale andand typecurrent of activitiesassets areundertaken;consistent with Y’ Yp aeKe1S)hl
(d) ofinvestment assets held;income and is consistent with the nature \4 / i 4 Sh\A »)
(e) tangible fixed assets are consistent with the Y Nw ek
charity's scale and type of activities. ] ) ry )
(f) any income, expenditure or asset values have
been affected by the Covid-19 pandemic and
whether amounts are consistent with the x 7
auditor's understanding of the charity and its VED
objectives.
Write appropriate notes.
3 For any significant variances from previous years or
from auditor's expectations, seek explanations from the
charity's trustees and/or staff.
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| :

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(e) tracing post-year end receipts or payments to 7 \Y \ Ee)
confirm debtors or creditors. / JOCAIE a
5 _ If the charity's accounts could be materially misstated
then carry out sufficient additional checks to be
explainedsatisfied thatandthecorrectlyitem(s) includedhas beenin thesatisfactorily accounts. Xf >; ao )
W J
6 Note any implications for the examiner's report and for
separate reporting to the Commission.
7 Other tests:
Ne ry
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Conclusion

Subject to the matters highlighted on the Completion Memorandum (B1)*, in my opinion, sufficient evidence has been obtained from the checks recorded overleaf to conclude that there are no unusual items or disclosures in the accounts which cannot be satisfactorily explained.

Preparer:

Date:

Reviewer: * Delete

S Leh ans if not applicable

Date: te | t (a0

Alternative conclusion (ANY alternative conclusion MUST be referred to on the Completion Memorandum (B1) schedule).

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Preparer:
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Date:
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Reviewer:

Date:

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Client Name:Happy Faces
Year end:3173~-<2\
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Ref:
D3
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File number:H631

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.

CC 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.

Further guidance is available online

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Covered by Results Ref/comments Initials
accountancy | satisfactory and
Y/N Y/N date
1 (a) Check all current year items appearing in the -- LO
accounts on the face of the Statement of ‘f Y \ ¥ .
Financial Activities, summary income and
expenditure account or receipts and payments
account to the trial balance.
(b) Include a copy of the cross-referenced : ¥ Vaid)
accounts and trial balance on file. i =
2 = (a) nominalCheck allledger.items from the trial balance to the p Y SAD-
(b) If no nominal ledger is kept for a charity
preparing a receipts and payments account, : a ¥ JAD
agree details to the cash records. i
3 Check a sample of the figures in the nominal ledger or
trial balance to the prime books and vice versa,
including:
(a) accountingaccounting records,packages;maintained and by computer 7F Xj‘4 Wayt W
(b) debtors and creditors in the nominal C7 Ny
ledger to supporting list of balances. ri ] \ YT)
4 Review a sample of bank reconciliations and control _
accounts for completeness of postings from books of ¥ 7 3 a
prime entry. AD
5 Check items to the underlying records where: .
:
(a) the make-up of items in the nominal ledger is KS= i JAD
unclear; or
(b) concerns arise which cannot be resolved; or ry ae \1 RA 1)
(c) the accounts are prepared directly from the Vo Y LAT
basic records. NYP) / \ JAY
6 Consider whether any transactions do not appear to
comply with the objects of the charity. KS AA be JAD
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. r \AD ‘
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8 Other tests (if required):

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WHA
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JAI
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Conclusion

Subject to the matters highlighted on the Completion Memorandum (B1)*, in my opinion, sufficient evidence has been obtained from the checks recorded overleaf to conclude that the accounts are in agreement with the accounting records and transactions are in accordance with the trusts of the charity. Preparer: Date:

Reviewer:

Date:

Reviewer:

Date:

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January 2021