THE SIDNEY PERRY FOUNDATION
AUDIT MANAGEMENT LETTER FOR THE YEAR ENDED 31[ST] DECEMBER 2020
The Governors GS/045801 The Sidney Perry Foundation P. O. BOX 889 Oxford, OX1 9PT
15 June 2021
Dear Governors,
In accordance with our normal practice, we have set out, in section 1 of this report, the key matters arising from our audit including those prescribed by International Auditing Standard 260. In section 2, we have set out the Governors’ representations on which we are placing reliance for the purpose of our audit.
As you will appreciate, our audit procedures are designed primarily to enable us to form an opinion on the accounts as a whole. Our procedures include such tests of the accounting records and internal control systems as are, in our opinion, necessary for audit purposes. Consequently, whilst our procedures may identify certain weaknesses which may exist, the audit procedures in themselves should not be relied upon to reveal all the weaknesses which may exist in the system.
This report has been prepared for your sole use and we assume no responsibility to any other party in respect of its contents. The report should not be disclosed to any third party without our prior written consent.
In conclusion we would like to take this opportunity of expressing our appreciation to Lauriann Owens for her assistance and co-operation during the course of our work. We shall, of course, be pleased to discuss with you any matter you may wish to raise in connection with this letter.
Yours sincerely,
Knox Cropper LLP
THE SIDNEY PERRY FOUNDATION
Section 1 Section 2
Matters Arising from the Audit Letter of Representation
SECTION 1
THE SIDNEY PERRY FOUNDATION Matters Arising from the Audit
General
The purpose of our audit is to gather sufficient evidence to allow us to conclude that the transactions and balances disclosed in the accounts are unlikely to be materially mis-stated, to establish that disclosures reflected in the accounts comply with the requirements of legislation and relevant accounting standards and to assess whether the accounting policies adopted are appropriate and consistently applied.
Audit Report
We have completed our audit to our satisfaction and intend to issue an unqualified audit opinion on the accounts. The format of the audit report has is in accordance with the standard format for unqualified audit reports issued by the Financial Reporting Council and includes new paragraphs in respect of Going Concern and Auditors responsibilities.
Audit Adjustments
We have prepared the financial statements from the primary accounting records and all material adjustments arising from our audit work have been discussed with the Secretary and appropriately reflected in the financial statements. We confirm that no misstatements were detected during the audit which remain uncorrected in the financial statements.
Accounting Policies and Disclosures
The accounting policies adopted by the Charity are consistent with previous years and are appropriate to the charity’s operations.
There were no changes in legislation which affected the presentation or disclosures in the accounts this year and therefore, subject to the above, the form and content of the accounts are consistent with the preceding year. The accounts have been prepared under Financial Reporting Standard 102 and the Charity SORP (FRS 102) issued in October 2019.
The charity has been affected by Covid 19 to the extent that both investment values and investment income have fallen. However, given the nature of the charity and its commitments, there are no risks to the ability of the charity to continue as a going concern as a result of Covid 19 and therefore no additional disclosures have been required this year.
Accounting Systems and Internal Controls
The accounting records, and records of grant applications and approvals, were well maintained by the Secretary during the year and no significant weaknesses were identified during the audit.
THE SIDNEY PERRY FOUNDATION Matters Arising from the Audit
Professional Ethics and Independence
We confirm our compliance with Ethical Standards issued by the Auditing Practices Board and there are no matters in relation to our audit engagement which we consider should be brought to your attention.
Emerging Issues
Charity Commission guidance on Responsible Investment
The Charity Commission has announced that it plans to update its guidance on responsible investment and that a consultation paper will be issued in Spring 2021. By responsible investment, the Charity Commission means investing in a way which aligns with the charity’s mission and purposes. The current guidance is set out in CC14 which deals with both financial investment and programme related investment.
Charity Governance Code Update
The Charity Governance Code has been refreshed in December 2020. The code, which is endorsed by the charity commission although not compulsory, sets out the seven principles of good governance, with separate versions for small and large charities. The main changes relate to the Diversity principle and to the Integrity principle:
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a) The Diversity principle has been renamed the Equality, Diversity and Inclusion principle and there is a greater focus on the Trustees defining the importance of this principle for their charity and then establishing and monitoring targets and publicising progress.
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b) The updated Integrity principle emphasises the importance of understanding safeguarding responsibilities and establishing robust procedures including processes whereby concerns can be raised.
Timeline for updating the Charity SORP
The next update of the charity SORP is expected to be published in Autumn 2023, coming into effect for accounting periods beginning on or after 1 January 2024. A new framework for consultation is now in place with the SORP making body and the SORP Committee engaging with stakeholders through the recruitment of volunteer engagement partners representing various strands of the consultation.
Audit Fees
Our audit fees, including VAT, have been increased annually by inflation and are as follows:
2020: £3,350 2019: £3,288
SECTION 2
THE SIDNEY PERRY FOUNDATION
Letter of Representation
Messrs. Knox Cropper LLP Chartered Accountants 65/68 Leadenhall Street London EC3A 2AD
Dear Sirs,
We confirm, to the best of our knowledge and belief, and having made appropriate enquiries of other governors and the Secretary of the charity, the following representations given to you in connection with your audit of the charity’s financial statements for the year ended 31[st] December 2020.
1. GENERAL
We have fulfilled our responsibilities as governors as set out in the terms of your engagement letter, under the Charities Act 2011 for preparing financial statements which give a true and fair view and for making accurate representations to you. We also acknowledge our responsibility for the design and implementation of internal controls to prevent and detect error and fraud.
2. RECORDS
All the accounting records have been made available to you for the purpose of your audit and all the transactions undertaken by the charity have been properly reflected in the accounting records. All other records and related information, including minutes of governors meetings, have been made available to you. We confirm that, so far as each governor is aware, there is no relevant audit information of which you have not been made aware.
3. GOING CONCERN
We believe that the charity’s financial statements should be prepared on a going concern basis because the governors are of the opinion that the present level and future sources of finance are sufficient to allow the Charity to continue in operation. In making this statement, the governors have considered projections for at least the next twelve months from the date of approval of the accounts.
4. LAW AND REGULATIONS
We confirm that we are not aware of any possible or actual instance of noncompliance with those laws and regulations which provide a legal framework within which the charity conducts its operations. The charity has complied with all aspects of contractual and other agreements that could have a material effect on the financial statements in the event of non-compliance. There has been no communication with Regulatory Authorities during the year or subsequently concerning non-compliance with financial and regulatory matters.
SECTION 2
THE SIDNEY PERRY FOUNDATION
5. INTERNAL CONTROL
There have been no irregularities or allegations thereof involving governors or others involved in the management of the Charity.
6. POST-BALANCE SHEET EVENTS
Except as already disclosed in the financial statements, there have been no events since the balance sheet date which necessitate revision of the figures included in the financial statements or inclusion of a note thereto. Should further material events occur, which may necessitate revision of the figures included in the financial statements or inclusion of a note thereto, we will advise you accordingly.
7. CONTINGENT LIABILITIES
We are not aware of any litigation pending at 31[st] December 2020 or other matters giving rise to potential liabilities or guarantees.
8. LOANS AND ARRANGEMENTS
The charity has not had, nor entered into at any time during the year, any arrangement, transaction or agreement to provide credit facilities for governors nor to guarantee or provide security for such matters. No remuneration or reimbursement for expenses was paid to the governors.
9. TRANSACTIONS WITH RELATED PARTIES
We understand that each board member and the secretary, as well as any company, firm or business venture in which any of the above holds a significant interest, constitute a related party. We confirm that there were no related party transactions during the year.
Yours faithfully
........................................................... ……………………………. Signed on behalf of the Board of Governors Date