Appendix A
The Vale of Glamorgan Welsh Church Act Fund
Annual Report and Financial Statements 2022/23
Registered Charity no. 506628
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Welsh Church Act Fund 2022/23
Annual Report and Financial Statements 2022/23
Annual Report and Financial Statements 2022/23.......................................................2 Report of the Trustees for the year ended 31 March 2023........................................3 Duty to Prepare Annual Reports and Accounts......................................................3 Reference and Administrative Information.............................................................3 Structure Governance and Management...................................................................4 Governing Document.............................................................................................4 Organisation...........................................................................................................4 Related Parties.......................................................................................................4 Risk Management...................................................................................................4 Objectives and Activities...........................................................................................4 Achievements and Performance................................................................................5 Financial Review....................................................................................................5 Plans for Future Periods.........................................................................................6 Statement of Responsibilities for the Preparation of the Annual Report...................7 The trustee responsibilities....................................................................................7 Statement of Accounting Policies..............................................................................8 Basis of Preparation...............................................................................................8 Income Policy.........................................................................................................8 Expenditure Policy.................................................................................................8 Fixed Assets...........................................................................................................8 Statement of Financial Activities for the year ended 31[st] March 2023....................10 Balance Sheet as at 31[st] March 2023......................................................................11 Cashflow Statement................................................................................................12 Notes to the Statement of Financial Activities.........................................................13 Notes to the Balance Sheet.....................................................................................15 Report of the independent examiner to the trustees of the Vale of Glamorgan Welsh Church Act Fund...........................................................................................17
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Welsh Church Act Fund 2022/23
Report of the Trustees for the year ended 31 March 2023
Duty to Prepare Annual Reports and Accounts
The Vale of Glamorgan Council, as corporate trustee, is responsible for the preparation of the Annual Report and Accounts for the Vale of Glamorgan Welsh Church Act Fund.
The trustees present their report along with the accounts of the charity for the year ended 31st March 2022 as required by Section 162 of the Charities Act 2011.
Reference and Administrative Information
Name of Charity
The Vale of Glamorgan Welsh Church Act Fund
Charity Number
506628
Principal Office
Civic Offices, Holton Road, Barry, Vale of Glamorgan, CF63 4RU.
Trustees
The Vale of Glamorgan County Borough Council corporate body appointed under the Local Government (Wales) Act 1994 and The Welsh Church Act Funds (Designation and Specification) Order 1996 thereto.
Chief Executive
Rob Thomas
Independent Examiner
Audit Wales, 24 Cathedral Road, Cardiff, CF11 9LJ.
Bankers
Lloyds Bank, 140b Holton Road, Barry, Vale of Glamorgan CF63 4TZ.
Solicitors
Legal Services, Vale of Glamorgan County Borough Council, Civic Offices, Holton Rd., Barry, Vale of Glamorgan. CF63 4RU.
Investment Advisors
Evelyn Partners Investment Management Services, Portwall Place, Portwall Lane, Bristol BS1 6NA
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Welsh Church Act Fund 2022/23
Structure Governance and Management
Governing Document
The current Scheme of Arrangement is dated 25[th] November 1975 pursuant to Section 19 of the Welsh Church Act 1914, which requires the fund which is the subject of the scheme to be expended on the charitable purposes as set out on page 5 of this report.
Organisation
The Council as corporate trustee is responsible for the administration of the fund across the geographical areas of the Vale of Glamorgan Council and the City and County of Cardiff. The Council has delegated management of the fund to a Welsh Church Act Estate Committee.
The members of the Welsh Church Act Estate Committee are Vale of Glamorgan Council Councillors and are appointed by full Council, at the Council’s Annual Meeting.
The fund operates in accordance with the Vale Council constitution, which sets out how decisions are made, the scheme of officer delegation, contract standing orders, and financial regulations, and the procedures, which are to be followed to ensure that these are efficient, transparent and accountable to local people.
Related Parties
A related party transaction is one where the charity has a relationship with another party, which might inhibit it from pursuing its own separate interests. It is considered that the City and County of Cardiff and the Vale of Glamorgan County Borough Council has a related party relationship with the charity. Financial transactions with the Council are disclosed in Note 1 to the Statement of Financial Activities. There are no related party transactions with the City and County of Cardiff during 2022/23.
Risk Management
Trustees are made aware of any issues with possible detrimental effects upon the fund as they arise. The financial administration of the trust has regard to the Council’s overarching risk management strategy and is conducted in accordance with the Council’s Corporate Governance policies, which include inter alia Financial Procedure Rules, Standing Orders and Scheme of Delegation.
Objectives and Activities
The former Prime minister Lloyd George, under the provisions of the 1914 and 1919 Welsh Church Acts, established the Welsh Church Fund. These two acts transferred certain categories of secularised property, to a Welsh Church Fund to be administered by the County Councils. However these funds were not activated until 1942-47, when property to the value of almost £2.5 million was handed over to the County Councils.
The Welsh Church Acts state that income of the funds should be devoted to charitable or alms giving purposes and that each Council is required to prepare a scheme for the use of the fund.
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Welsh Church Act Fund 2022/23
The Vale of Glamorgan Welsh Church Act Fund currently operates in accordance with the Scheme dated 25 November 1975 effected by the former South Glamorgan County Council and agreed by the Secretary of State for Wales 9 February 1976.
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The following is a precis of the charitable purposes to which the fund may be applied: Educational
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Relief in sickness
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Relief in need
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Libraries, Museums, Art Galleries, etc.
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Social and recreational
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Protection of historical building etc.
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Medical and social research treatment etc.
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Probation, etc.
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Blind persons
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Aged persons
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Places of worship and burial grounds
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Emergencies or disasters
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Other purposes not inconsistent with the Scheme or the Welsh Church Acts.
Achievements and Performance
Details of grants made from the fund during the course of the year are as shown in the Notes to the Statement of Financial Activities. There are no performance targets.
Financial Review
Fund value
The net value of the fund at year end was £5.175M, a decrease of £79k on the previous year of which £98k was a due to a decrease in the value of the Trust’s investments and £19k was due to an increase on the unrestricted funds held by the Trust.
Investment Policy
The trustees have complied with their investment powers as in the approved Scheme and under the Trustee Act 2000. Evelyn Partners (previously Tilney Financial Planning Limited), authorised and regulated by the Financial Services Authority, act as Independent Financial Adviser to the trust. The investment objectives are to maximise income within a low risk to capital strategy.
The Committee have reviewed their approach to Investments in year benchmarking against the approach of other authorities that manage Welsh Church Act Investments and have determined to revise approach to investments utilising Collective Investment Funds in future. Due to the current market conditions and economic uncertainty some guidance will be sought from the Council’s Independent Treasury Management Advisers on the timing of this movement.
Policy on Reserves
The Trust’s unrestricted funds increased from £124k to £143k during 2022/23, this sum equates to 4.43% of the value of the Investment Properties and is held primarily to fund unforeseen costs on maintaining the Investment Properties. The unrestricted fund is also used to allow for fluctuations in investment income to ensure consistent provision of grant funding as part of the Trust’s charitable purposes.
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Welsh Church Act Fund 2022/23
Plans for Future Periods
The Trust will continue to draw on the cleared income from its Investments and Investment Properties to award grants in accordance with the scheme of the Welsh Church Act Trust.
Trustees will regularly review the Investments and Investment Properties held by the Trust for these purposes.
Trustees plan to transfer the investments from Evelyn Partners invested under a discretionary managed basis to CCLA Ethical Collective Investment Fund during 2023/24 as per the resolution of their Committee in January 2023.
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Welsh Church Act Fund 2022/23
Statement of Responsibilities for the Preparation of the Annual Report
The trustee responsibilities
The charity's trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, Charities Act 1993 and the Charity (Accounts and Reports) Regulations 2008. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees at their meeting on 27[th] February 2024 and the Chairperson, duly authorised to sign the same on their behalf.
Signed: Councillor Mark Wilson Date 27/02/2024
Chairperson Vale of Glamorgan Welsh Church Act Estate Committee
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Welsh Church Act Fund 2022/23
Statement of Accounting Policies
Accounting Policies are the principles, bases, conventions and rules by which transactions are recognised, measured and presented in the accounts to show a true and fair view in accordance with the financial reporting standard (FRS) 18.
Basis of Preparation
The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Income Policy
Investment income is recognised as it becomes receivable.
Expenditure Policy
Grants are recognised in the accounts when a commitment has been made.
Fixed Assets
Investment Properties
Investment Properties are recorded in the accounts at current market value as required by the above-mentioned regulations. Valuations are carried out by an external valuer, (being a member of the The Royal Institution of Chartered Surveyors (RICS)) in accordance with the RICS Valuation Standards. Any difference in value arising out of the periodic revaluations is charged / credited to the Revaluation Reserve except where the individual assets have not previously been revalued upwards, in which case any charges will be expensed in the year to which they relate. A valuation was carried out by Avison Young, during the financial year 2018/19 as a result of the current market uncertainty a review of Council assets was carried out for the 2021/22 accounts assets of this nature have not fluctuated in value during this time. In accordance with FRS102, Accounting for Investment Properties, depreciation is not provided on the land and buildings as these are held as investment properties.
Other Investments
Other Investments are recorded in the accounts at current market value as required by the above-mentioned regulations. Any difference in value on the previous year is charged
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Welsh Church Act Fund 2022/23
/credited to the Revaluation Reserve except where the individual assets have not previously been revalued upwards, in which case any charges will be expensed in the year to which they relate.
Fund Structure
The funds of the trust are restricted in their application to the charitable purposes set out in the “scheme for the administration of the trust” made by the former South Glamorgan County Council.
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Statement of Financial Activities for the year ended 31[st] March 2023
| 2021/22 | 2021/22 | 2021/22 | 2022/23 | 2022/23 | 2022/23 | ||
|---|---|---|---|---|---|---|---|
| Unrestricted Fund |
Endowmen t Fund |
Total Fund | Notes Page 14 |
Unrestricted Fund |
Endowmen t Fund |
Total Fund |
|
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | ||
| Income and endowments from: | |||||||
| 18 | 0 | 18 | Investment Properties | 19 | 0 | 19 | |
| 32 | 0 | 32 | Investments | 1 | 38 | 0 | 38 |
| 50 | 0 | 50 | Total | 57 | 0 | 57 | |
| Expenditure on: | |||||||
| 0 | 0 | 0 | Raising Funds – Investment Management Costs |
0 | 0 | 0 | |
| 0 | 0 | 0 | Raising Funds – Property Repairs and Maintenance |
(2) | 0 | (2) | |
| (41) | 0 | (41) | Charitable activities–Grant Making | 2 | (33) | 0 | (33) |
| (5) | 0 | (5) | Governance Costs | (3) | 0 | (3) | |
| (46) | 0 | (46) | Total | (38) | 0 | (38) | |
| 0 | 21 | 21 | Net gains/(losses) on investments | 0 | (98) | (98) | |
| 4 | 21 | 25 | Net income/(expenditure) | 19 | (98) | (79) | |
| 0 | 0 | 0 | Transfers between funds | 0 | 0 | 0 | |
| 0 | 0 | 0 | Other recognised gains/(losses): | 0 | 0 | 0 | |
| 0 | 0 | 0 | Gains/(losses) on revaluation of fixed assets |
0 | 0 | 0 | |
| 0 | 0 | 0 | Proceeds on disposal of investment properties |
0 | 0 | 0 | |
| 4 | 21 | 25 | Net movement in funds | 19 | (98) | (79) | |
| Reconciliation of funds: | |||||||
| 120 | 5,110 | 5,230 | Total funds brought forward | 124 | 5,131 | 5,255 | |
| 124 | 5,131 | 5,255 | Total funds carried forward |
143 | 5,033 | 5,176 |
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Welsh Church Act Fund 2022/23
Balance Sheet as at 31[st] March 2023
| 2021/22 | 2021/22 | 2021/22 | 2022/23 | 2022/23 | 2022/23 | ||
|---|---|---|---|---|---|---|---|
| Unrestricted Fund |
Endowment Fund |
Total Fund |
Notes Page 16&17 |
Unrestricted Fund |
Endowment Fund |
Total Fund |
|
| £000's | £000's | £000's | £000's | £000's | £000's | ||
| Fixed assets | |||||||
| 0 | 3,231 | 3,231 | Investment Properties | 1.1 | 0 | 3,231 | 3,231 |
| 0 | 1,878 | 1,878 | Investments | 1.2/3 | 0 | 1,780 | 1,780 |
| 0 | 5,109 |
5,109 | Total fixed assets | 0 | 5,011 |
5,011 | |
| Current assets | |||||||
| 7 | 0 | 7 | Debtors | 2 | 10 | 0 | 10 |
| 43 | 22 | 65 | Debtors Cash owed by Vale of Glamorgan Council |
62 | 22 | 84 | |
| 100 | 0 | 100 | Investments | 100 | 0 | 100 | |
| 150 | 22 | 172 | Total current assets | 172 | 22 | 194 | |
| Current liabilities | |||||||
| (26) | 0 | (26) | Creditors: amounts falling due within one year |
4 | (29) | 0 | (29) |
| (26) | 0 | (26) | Total current liabilities | (29) | 0 | (29) | |
| 124 | 5,131 | 5,255 | Net current assets or liabilities | 143 | 5,033 | 5,176 | |
| 124 | 5,131 | 5,255 | Total assets less current liabilities | 143 | 5,033 | 5,176 | |
| The funds of the charity: | |||||||
| 0 | 1,004 | 1,004 | Endowment funds | 0 | 1,004 | 1,004 | |
| 124 | 0 | 124 | Unrestricted funds | 143 | 0 | 143 | |
| 0 | 4,127 | 4,127 | Revaluation Reserve | 0 | 4,029 | 4,029 | |
| 124 | 5,131 | 5,255 | Total charity funds | 143 | 5,033 | 5,176 | |
| Approved by the trustees at their meeting on 27thFe~~bruary 2024 a~~nd the Chairperson, duly authorised to sign the same on their behalf. Signed : Councillor Mark Wilson Date : 27/02/2024 Chairperson Vale of Glamorgan Welsh Church Act Estate Committee |
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Cashflow Statement
| 2021/22 | 2022/23 | ||
|---|---|---|---|
| Notes | Prior Year Funds |
Total Funds |
|
| £’000 | £’000 | ||
| Cash flows from operating activities: | |||
| Net cash provided by (used in) operating activities | 39 | 32 | |
| Cash flows from investing activities | |||
| Dividends interest and rents from investments | (48) | (51) | |
| Proceeds from the sale of investments | 0 | 0 | |
| Purchase of investments | 0 | 0 | |
| Net cash provided by (used in) investing activities | (48) | (51) | |
| Net cash provided by (used in) financing activities | 0 | 0 | |
| Change in cash and cash equivalents in the reporting period |
(9) | (19) | |
| Cash and cash equivalents at the beginning of the reporting period |
(56) | (65) | |
Cash and cash equivalents at the end of the reporting period |
(65) | (84) |
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Welsh Church Act Fund 2022/23
Notes to the Statement of Financial Activities
1. Investment Income
| 2021/22 | 2022/23 | |
|---|---|---|
| £ | £ | |
| Investment Income from Investments held with Tilney |
31,755 | 36,074 |
| Interest Received from Vale of Glamorgan Council | 140 | 2,238 |
| Total | 31,895 | 38,312 |
2. Related Party Transactions
| 2021/22 | 2022/23 | |
|---|---|---|
| £ | £ | |
| Interest Received from Vale of Glamorgan Council | 140 | 2,238 |
| Total | 140 | 2,238 |
The interest shown above is part of Income and Endowments from Investments in the Statement of Financial Activities.
3. Grants Paid
During 2022/23 the Fund awarded total grants amounting to £34k towards the charitable purposes to which the fund may be applied, as detailed below.
| Organisation | Scheme | Amount £ |
|---|---|---|
| St Mary's Church, Cowbridge | Roof internal structural and water ingress repairs. |
5,000 |
| St Mary Magdelene's Church, Monkash |
Chance roof internal structural and water ingress repairs. |
5,000 |
| St Denys Church in Wales, Lisvane |
Equipping Newly Built Church House | 3,750 |
| Cowbridge Tennis | New Tennis Facility | 5,000 |
| St Lawrence Church at Lavernock Trust |
Building Restoration/ Repair | 4,380 |
| Saint Dochdwy's Churchyard in Penarth |
Churchyard Clearance and Maintenance | 1,710 |
| Tabernacle Baptist Church, Penarth |
Carpets Restoration and Equipment Relocation |
5,000 |
| Princes Street Evangelical Baptist Church |
Light Fixtures Upgrade | 5,000 |
| Total Grants Paid as per SOFA | 34,840 | |
| Grant withdrawal of Saint Dochdwy's Churchyard in Penarth 22/23 |
(1,710) | |
| Amended Total Grants as per SOFA |
33,130 |
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Welsh Church Act Fund 2022/23
4. Trustees Remuneration/Benefits
No remuneration or benefits was paid to Trustees during 2021/22 or 2022/23.
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Welsh Church Act Fund 2022/23
Notes to the Balance Sheet
1. Fixed Asset Investments
1.1. Investment Properties
| Land | Freehold Properties |
Totals | |
|---|---|---|---|
| £’000 | £’000 | £’000 | |
| Balance as at 1st April 2022 Disposals Additions Net profit/(loss) on revaluation |
3,231 0 0 0 |
0 0 0 0 |
3,231 0 0 0 |
Balance as at 31stMarch 2023 |
3,231 | 0 | 3,231 |
1.2. Investments
| 2021/22 | 2022/23 | |
|---|---|---|
| £’000 | £’000 | |
| Balance as at 1st April | 1,857 | 1,878 |
| Additions at cost | 0 | 0 |
| Reclassification from short term | 0 | 0 |
| Disposals at carrying value | 0 | 0 |
| Unrealised gains/ (losses) in year | 21 | (98) |
Balance as at 31stMarch 2023 |
1,878 | 1,780 |
The Investments balance at 31[st] March 2023 is made up as follows.
| 31/03/2023 | ||
|---|---|---|
| Portfolio % | £'000 | |
| Equities | 48% | 863 |
| Investment Grade Corporate Bonds | 22% | 402 |
| Government Fixed Income | 5% | 88 |
| High Yield Fixed Income | 0% | 0 |
| Real Assets | 6% | 106 |
| Absolute Return | 13% | 226 |
| Commodity | 3% | 49 |
| Cash Total |
3% 100% |
46 1,780 |
28% of equities in the portfolio are classed as UK equities and 58% of the overall portfolio is held in Pounds.
2. Debtors – amounts receivable within one year
Debtors at 31[st] March 2023 amounted to £10,268.45 outstanding from Tilney Investment Management for income on investments in year.
3. Investments
The short-term investment of £100k is invested in the money markets by the Vale of Glamorgan Council on behalf of the fund. Interest is payable at the Overnight SONIA rate.
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Welsh Church Act Fund 2022/23
4. Creditors - amounts payable within one year
| Creditor | 31/03/22 | 31/03/23 |
|---|---|---|
| £’000 | £’000 | |
| Independent examiners fee Legal Expenses Grants agreed in 2018/19 unpaid at 31stMarch Grants agreed in 2019/20 unpaid at 31stMarch Grants agreed in 2020/21 unpaid at 31stMarch Grants agreed in 2021/22 unpaid at 31stMarch Grants agreed in 2022/23 unpaid at 31stMarch |
5 1 0 5 0 15 0 |
4 0 0 0 0 10 15 |
| Total | 26 | 29 |
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Welsh Church Act Fund 2022/23
Report of the independent examiner to the trustees of the Vale of Glamorgan Welsh Church Act Fund
I report on the accounts of Vale of Glamorgan Welsh Church Act Fund for the year ended 31 March 2023, which are set out on pages 7 to 16
Responsibilities and basis of report
As the charity's trustee, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act). You are satisfied that the accounts are not required to be audited by charity law and have chosen instead to have an independent examination.
I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Act; In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.
Independent examiner’s statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Adrian Crompton Auditor General for Wales 29 February 2024
1 Capital Quarter Tyndall Street Cardiff
CF10 4BZ
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