Charfty Registrallon No. 514108 Company Reglstr•tion No. 017311291England and Wales) NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr P Gibson MA {Oxonl, DMS, MBIM Dr C S Harcourt BSC, Msc, PhD Mr T Deakin MIET Mr N H Brown Bsc Mr R Jackson BBA CGMA Dr S Miller Bsc IHons} Mr A Greenwood MA VetMB CBiol FSB DipECZM FRCVS Mr N L Jacksors MBE MrA Rogers Secretary Mr C Mitchell Charlty number 514108 Company nvmbor 01731129 Principal address Flagstaff Gardens Old Highway CoNvyn Boy LL28 SUY Registered office Flagstaff Gardens Old Highway Colvryn Bay LL28 5UY Audltor Sage & Company Business Advisors Ltd 102 Bowen Court St Asaph Business Park StAsaph Denbighshire LL17 OJE NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED CONTENTS Page Trustses report Ststement of Truste8s responsibilities Independent auditoffs report 9-12 Statement of financial adivrties 13-14 8alance sheet 15 Statement of cash flows 17 Notes to the financial statements 18-29 NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report together wth the consolidaled financial stslements of the charity accounts for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in nole 1 to the financial statements and comply with the Nabonal Zoological Society of Wales's Igoverning documentl, the Companies Act 2006 and "Accounting and Reporting by Charities. Statement of Recommended Pracbce applicable to charities preparing their accounts in accordance with the Finanaal Reporting Standard applicab￿ In the UK and Republic of Ireland IFRS 1021" (effective 1 January 2019}. ObJe¢tlve8 and actlvltl?s As the National Zoological Soci&ty of Wales. the Charity's object and its prinupal activity are to advance the education of the general public by Increasing knowledge, Interest and apprectatson of animals - including rare and endangered species and plants in l)oth natural and artifioal environments. and to provide facilities for recreation and other leisuTe time activities. Ml88lon Ststernent Through Ils work at the Welsh Mountain Zoo, and elsewher8. the SOc￿ty seeks to.. enhan(x appreciation and understanding of the earth's nalural hentage through public education and r•¢reation, and the advancement of biological study. support the maintenance of the earth's biological diversity through participats'on in conservalion breeding programmes and assistance for Conservation in the wild. pursue the above objectives and activities globalty, regionally and with special omphasis on the conservation and enhancement of biodiversity in Wales and its surrounding areas. We have oullined the achievements and perfomiance of the Charty in line with its Strategic Aims as listed below. Strategic Aim 1.. To operate an exemplary Zoo, providing a ￿ntre of excellence for animal welfare and Ihe Zoo environment Strategic Aim 2". To maximise the impact of our conservation and research activities both within the Zoo and in Ihe wild. making a real difference lo the care and prolects'on of animals, plants and habitsts Strategic Aim 3. To enhance the public's knowlèdge. appreciation and understanding of animals and the natural environment {Including rare and endangered species) and increase awareness of ￿nSerVatIon through inspiring educational experiences Strategic Aim 4.. To enhance the Zoo's position as a leading Visitor attraction in North Wales, providing engaging, enjoyable, qualty experiences for all guests Strategic Aim 5.. To ensure the lon*temi financial and environmental sustainability of the Charity through ffinancially sustainable business activities and h￿h standards of goveman Strategic Aim 6.. To be an active and effective social enterpnse with strong community involvement and partnership working The Trustees and Management confimi they have both paid due regard lo and continue in the provision of public benefit through the Charity's obiectives in line with s4 of the Companies Act 2006 and 517{51 of the Charities Act 2011. NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 As visitor attendance figures will demonstrate. 2023 ended slightly down on 2022. Unfortunately, Ihe downtum in visitor numbers may be due to poor weather experienced in the year and the fall out of this on a largely outdoor attraction. Whilst this report focuses on the Zoo Charity, we have to accept that there are concems over visitor numbers al attractions on both a national and regional level, with global factors adding an air of uncertainty. Uts'lity pnces and other costsaof-living remain high. The basis of valuation for donated services of volunteer3 is that deemed costs are not recognised within the Statement of Financial Activities. Achlevem•nts and perfornianco Strat•gl¢ Alm 1: To operat• an •x•mplary zoo, provldlng a c•ntr• of excelhnc• for anlmal w•lfar• and Ihe zoo envlronm•nt vemen s animal f Work ha$ begun to disposilion the repti￿ collecb'on. to ensure the Zoo can meet the tems of the Licence Direction that the reptiles be in new accommodatson by September 2024. This will allow works lo begin t¢)wards a new facility in the area of the alligators, children's fam and reptik8 house. The galah aviary was reameshed, with addibonal shelter added for the birds. The specification of the mesh also ensures pests are excludéd from the aviary, providing protection of their food source and from incufsion of wild birds. Plans are being put together wrth our archrtect contractors for improved ac¢ommodatson for the brown bears and gibbons. Plans were finaliséd for rep1a￿rnent of the Sumatran tiger fence. the work for which will be undertaken in 2024. Design of the fenr* line aims to improve both viewing al allocated points, while generally improving seclusion opportunities for the cats. The electric sub main and feod to the sea lion habitat was upgraded. to ensure the LSS is fully supported into the future. A new and improved animal feed-prep kitchen was constructed ano fully fitted. ensuring a hygienic food prep area can b• maintained. During 2023 a number of speoes were bred as part ol COwordinal8d national or international éx situ breeding programmes and these induded Califomia sea lion, margay. Humboldt penguin plus a variety of other species including lemon dove, galah and weavers. A new female snow leopard was assigned to the Zoo by the EEP. and arrived in October. 11 is hoped ther8 will be breeding success bets¥een this young female and the mak8 received in 2022. Two young captive bred squirrels were assigned to and received by the Zoo, helping create hvo breeding paits. The Sumatran tigers underwent fertility investigation. From observations. they are both due dental work and the female will undergo keyhole surgery to remove a cyst in 2024. It is thought these acb'ons will work to improve the fertility of both cats. They will then be reassessed by the EEP for breeding recommendations. Ifare an of Life A The Zoo ha$ further developed annual welfare assessments. and ¢ontinues to develop the Quality-of-Life assessments, in order to measure and track animal welfare arKI habitst improvements. The functionality of these assessments will be under constant review. NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Strategle Alm 2: To maxlmlse the Impact of our conservatlon and research actlvltles both wlthln the Zoo and in the wild, making a real dlfference to the care and protection of animals, plants and habltats In 2023 we were able to exceed all existing promised frJnding, wrth the budget for in-situ financial donations increased. The Zoo was pleased to be able to provide a host site for co￿yn Bee Honey apiaries. with the locality expected to benefit trom the pollinators. 3 young captive bred squirrels were transferred to the Zoo for holding. ahead of their wild release in 2024. In situ Conservab"on'. The Society has maintained rts practical and financial support for a number of in situ conservation projects.. Rehabilitation and release of grey and common seals continues this year. Moth monitoring on the Zoo site in collaboration with Rothamsted Research. Working closely with collabofators in the Gwynedd Pine Marten Project and NRW the Zoo has provided pine martens for release in Gwynedd. North Wales. In 2023. the three martens bred In 2022 went for wild release. The Conservation Planning Specialist Group of the Species Survival Commission of IUCN. The Forest Guardian Programme {through EAZAI for red panda conservation in Nepal, The Snow Leopard Trust for snow leopard conse￿ation in range countn"es,' Madagasikara Voakajy for lemur conservation in Madagascar., The WELD Chimpanzee Foundation for chimp conservation in Cote d.1voi￿. Liberia, Guinea and Sierra Leone". Wildcats Conservation Alliance for wikl tyr conservation projects., Red Squirrels Trust Wales for the conservation of this native species. CREA Panama Margay Arboreal Project was added this year. Strateglc Alm 3: To enhance the public'$ knowledge. appre¢iation and understanding of animals and the natural environment lin¢luding rare and endangered species} and increase awareness of conservatlon through inspiring gducalional experiences Education.. Alex has increased outreach. dassroom and infomial education engagements by 744% in 2023, compared with 2022 engagement records. This was in achieved in part due to resuming Zoo Clubs. embracing larger community engagement opportunities and ￿VIewIng pric¢ng structure to increase uptake of formal education sessions by schools through the traditionalty quieter winter period. The Zoo implemented increased signage and inlerpretstion, f¢xused on ocean plastics to promote prfrconservation behaviours. Alongside, interactive signage for the bears. red-panda, and bees. Templates were created to introduce plant species signs to the site. Research.. This year saw nine completed research projects ranging from BSc-PhD. These induded behaviour sludies with bears, sea lions, callitrichids, macropods, and chimpanzees. teacher feedback evaluation, and signage impact on visitor engagement. The Zoo's in-house research was presented at the BIA2A National Education Confe￿nCe with fellow sector peers. NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Strategic Aim 4: To anhanc• the Zoo's posltlon a• a l•adlng vlsllor attractlon In North Walo8, provldlng ongaglng, •nJoyablo. quality exp•rl•nc•8 for all guests Improvements and modifications were made to some pathways in the woodland to improve accessibility. Further works were undertaken lo improv8 guest a￿$$ and egress lo and from the Zoos overfow carpark. Improved visitor access to and viewing of the Sumatran tiger endosure have been planned in line with the fence replacement, induding large viewing windows for a more immersive guest experience. A compound has been created in the comer of the overtlow car park. for vehicle, trailer and tool storage. This ar88 helps remove these items from sight of our guest and improves perceptions of the Zoo from arrival on the car park. The guest fatsng area of Ihe chimp auditorium undeThvent renovats'on and removal of Some obsolete equipment. to ensure a more attracbve space for guests lo S￿nd tsme. Electric cabling was laid from the pedestrian entrance of the Zoo to the field car park in preparation of receipt of defibrillator, which will mean there are Iwo defibrillators located on site for guest. A canopy was erected over and around the guest faang area of the main office. improving the look of this area and providing an all-wealher space for visitors in need of visiting the main office. Flnanclal rovl•w Strateglc Alm S". To •n•ure th• long-terni flnanclal Ind envlronm•ntal su8tslnablllty of the Charlty through flnanclally •u$tslnable busSne*• *¢tlvltl•s and hlgh •tandard$ of gov•m¥ncfr We ended 2023 12% down on the attendance ffigures of 2022. with 153.469 people visiting in 2023. 124,685 of these were paying. with the remainder made up of tree admission wheelchair users, under 3s and complimentsry tickets. Admission prices were increased in 2023 by 10% with gate receipts for the year ending 5.2% down on 2022. The 2023 shop receipts were 12Yo down on the previous year. wrth spend per head dropped 51ightty from £2.87 in 2022 to £2.63 in 2023. Catering recèipts were up 9% and this also resulted in an improvement in the caterin9 spend por head from £3.37 in 2021 10 £3.71 in 2023. Income from purchased activities in the Zoo. i.e., Keeper for the Day. Encounters and Adoptions, in 2023 showed an increase of 4yr* on 2022. The Society's 2018 to 2028 Strategic Plan was published in lale summèr 2018. The Trustees announced in September that a CEO would be appointed for 2024, at which point the Strategic plan would be reviewed. Chris Mitchel was appointed as CEO in May 2024. Ro•erve¥ poll¢y The Trustees policy for reseNes is to maintain a minimum of £500,000 in the bank account, such amount lo be kept under continuous review. This is based on an aggregate of 5 months, running costs which is deemed prudent by the Trustees. NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT> (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Risk management pollcy The Trustees have camed out a detailed review of the charity's acts"vities and produced a comprehensive strategi plan setting out the maior opportunities available to the charity and the risks to which it Is exposed. The Trustees monitor progress against the strategic obiectives of the charity. A delailed review of the objeth'ves is carried out regularly. As part of this process, the Twstse$ have implemented a risk management strategy which comprises.. regular review of the risk5 which the charity may face.. the establishment ol systems and procedures to mitsgate those risks identified in the plan," and the implemenlalion of proCedU￿S designed to minimise any potential impact on the charity should any of those risks materialise. The Truslees have focused on the need to refurbish arbd develop the animal exhibts further, resulting in the applications for funding mentioned previously. A successful outcome is dependent on the charity meeting the challenges such a maior project presents and managing our finan¢￿$ prudenlly. Pl•n• for fulvr• p•rlod• Work lo the overflow car park in 2022 were not effective in creating a usable all•weather car park. and as such, thè overfow car park was not usable during February half tenn and the busy Easter period, due lo waterlogging. nvir nm The Society's commitment to suslainability at the core of its activities has conb'nued and the programme of separating and recycling waste is continuing. In 2023 Catering Concessionaires, Graze Gqtering, successfijlly managed to remove the v8sI majonty of single use plastic items from their operation. induding but limited lo, cutlery, lake away packaging and pre￿acked drinks. The Direclofs engaged with G￿en Digital Academy. in order to begin assessment of the site in tems ol energy usa and cart)on footprint and begin a partnership lo identify any changes and Improvements that can be made, and any funding that may available to assist this process. The Board of Tnjslees announced in September 2023 that they would be rocruitr'ng for a CEO lo join the Charity. Chris Mitchel was appointed as CEO in May 2024. Director of Estates, Neil Morris, resigned his posrtion in the last quarter of the year. The vacancy was not advertised or refilled, with Jen Jesse, D1￿clOr Operations and Administration picking up key responsibilitses for the position. A Senior HR advisor post was created and filled in the second half of the year. NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED> FOR THE YEAR ENDED 31 DECEMBER 2023 Strategic ASM 6: To b• an a¢tOv• and effectlv• 80¢ial •nterprlse wlth •trong communlty Involvemont •nd partnernhlp worklng The Zoo engaged 38 volunteers across the four departments, who dedicated a totsl of 3,501.75 hours to thé zoo. We partnered with two local colleges, Uandrillo and Pengwem. to offer woth placements for their art. media, and garden students. Education sessions were held in collaboration with local charity groups including Guide Dogs UK. Epilepsy Action Cymru, ScoutslBrownies, and The Joshua Tree Charity. The zoo also. worked with Conwy Counril to receive Level 1 Makaton training lo increase the inclusivity of the zoo for its guests. hi ion The ZSWA charity. which ran memberships to NZSW was disbanded in July 2023. All exibng funds were transferred lo the Zoo, and membership will now be handled directly by the Zoo administration team. Total memberships averaged 2.400 for the year. reaching their peak in February 2023 with just under 2,700 members. Structurè. governan¢e and management The National Zoological Soaety of Wales Is a company limrted by guarantee and does not have a share capital. The liability of each member in the event of winding up is £1. The Trustees. who are also the directors for the purpose of company law. and who served dunng the year were,. Mr P Gibson MA (Oxonl, DMS. M81M Dr C S Harcourt BSC. Msc, PhD Mr T Déakin MIET Mr N H Brown 8Sc Mr R Jackson BBA CGMA Mr H D Roberts FRICS Ms S Scanlan BA Hons. Dr S Miller BS¢ (Hons) Mr A Greenwood MA VetMB C8iol FSB DipECZM FRCVS Mr N L Jackson M8E Mr A Rogers (Resigned 12 September 20231 (Resigned 21 March 2023} Under the artic￿$ of assoaation the maximum number of Trustees is ￿1ve. and one third of those retire each year by rolation. They are eligible lo be rewelected and are nominated and appointed by the remaining Trustees. The charity is govemed by the Twste8s who pass the day to day administrats.on to Jen Jesse in her capacity as Director of Operations and Administration (until May 2024} then Chris Mitch811 in his role as CEO {from May 2024}. The Zoological operation contsnue$ to be directed by Kim Wood. Any new Trustees that are nominated by the Trustees a￿ individuals that have the necessary skills and knowledg8 lo support the work of Ihe charity, however newly appointed Truslees are given appropriate training as deemed necessary. The Trustees hold quarterfy council meetings both in private and directors to discuss progre$$ and any igsue$ arising. NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The charity has a trading subsidiary (Zoological Society of Wa* Trading Company Limited). the reSU￿S of which are incorporated Into the consolidated accounts. The organisation operates a structured volunteer scheme in Cowoperation with Conwy Voluntary Council and WCVA. The volunteers assist on a part-time basis. under supervision. in various Zoo departments including Education, Gardens and Animal Welfare. The Trustees and Management of the Society are gratefvl for the support of our volunteers. In acwfdance with the accounting policy, the value of such volunteers is not recognised in the accounts. Auditor In accordan￿ with the company's artides, a resolution proposing that Sage & Company Business Advisors Ltd be reappointed a5 auditor of the company will be put at a General Meeting. Disclosure of inforrnation to auditor Each of the Trustees has confirmed that there is no information of vthich they are aware which is relevant to the audit, but of which the auditor is unaware. They have fvrtheT confim)ed that they have taken appropriate steps to identify such ￿levant infonnation and to estsblish Ihat the audttor is aware of such infomation. The Tnjstees report was approved by the Board of Trustees. Mr R Jackson BB Chalrnlan GMA 10 Septembef 2024 NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees. who are also the d1￿CtorS of National Zoological Society of Wales Limited for the purpose of ¢ompany law. are responsible for prepanng the Trustses Report and the a¢¢ounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practicel. Company Law requires the Trustees to prepare accounts for each financ¢al year which give a twe and faiT view of the stale of affairs of the National Zoological Society of Wales and of the incoming resources and application of resources. induding the income and expenditure. of the charitable company for that year. In preparing these accounts, the Trustees are required to.. - select surtable accounting policies and Ihen appty them consistenty., - observe the methods and principles in the Chariti8s SORP.. - make judgements and ests'mates that are reasonable arKI prudent., and - prepare the accounts on the going concem basis unless it 15 inappropriats to presume that the National Zoological Society of Wales wll continue in operats'on. The Trustees are responsible for keeping adeqLtale accounting records that disclose with reasonable accuracy at any time the finan￿al position of the National Zoological Souety of Wdles and enable them to ensure Ihal the accounts comply with the Companies Act 2006. They are also responsible fof safeguarding the assets of the National Zoological Society of Wales and hence for taking reasonable steps for the prevention and delection of fraud and othef irregularities. ststgment of dl•¢lo8ure to audltorn So far as &ach person who was a truste8 at the date of approving this report is aware. there is no relevant audil information of which the company's auditors are unaware. Additionally. the trustees individually have taken all the necessary steps that they ought to have taken as trustees in ord6r to make themselves aware of all relevant audit information and to establish that the Company's auditors are aware of that infO￿na￿On. NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED Oplnlon We have audited the financial statements of National Zoological Society of Wdles Limited (the 'National Zoological Society of Wales'l Ithe 'parenfl and its subsidiaries (the 'group'i for the year ended 31 December 2023 which comprise the Consolidated SOFA, Consolidated Balance Sheet, Consolidated Cash flow Statement and Parent Company Balance Sheet. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparatron is applicable law and United Kingdom Accountsng Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicabl8 in the UK 8nd Reputslic of Ireland Iuniled Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements give a true and fair view of the state of the Charitable companYs affairs as at 31 December 2023 and of its incoming resources and application of resources. induding its income and expenditure, for the year then ended", have been property prepared in accordance with Unrted Kingdom Generally A￿pIe0 Accounting Practice; and have been prepared in accordance wrth the requirements of the Companies Act 2006. 8¥•l• lor opSnlon We conducted our audit in accordance with 1ntemats.onal Standards on Audrting (UK} {ISAs IUKII and applicable law. Ouf responsibilities under those standards are further described in the Auditofs rasponsibiliti8s for the audit of the financial slatemenls section of our report. We are independent of the National Zoological Society of Wales in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficiont and appropriate to provide basis for our opinion. Con¢lu8lons r•latlng to goln9 cone•rn In auditing the financial statements, we have concluded that the Trustees use of the going concem basis of accounting in the preparation of the finanual statements is appropriate. Based on the work we have perfomed, we have not tdenlified any material uncertainties relating to events or onditions that, individually or collectively. may cast significant doubt on the National Zoological Society of Wales's ability lo continue as a going concem for a period of at least ￿1ve months from when the financial statements are authorised for Issue. Our responsibilities and the re$ponsibilits'es of the Trustees with respect to going concem are described in the relevant sections of this report. Other Infornatlon The other inforynalion comprises the infomialion induded in the annual report other than the financial slalements and our auditoff s report thereon. The Trustees are responsible for the other Information contained within the annual report. Our opinion on the finanaal statements does not cover the other information and, except to the extent oth8rwise expliuily staled In our report. we do not express any lom of assurance conclusion thereon. Our responsibility is lo ￿ad the other infomalion and. in doing so, consider whether the other infonnalion is materially incon$i$lenl with the financial slalements or our knowledge obtained in the course of the audit. or otherwise appears lo be materially misstated. If we identify such material Inconsistencies or apparent material misstatements, we are required to detemiine whether this gives nse 10 a material misstatement in the financial statements themselves. If, based on the work we have ￿rfOrnied. we condude that there is g material mi$$tatem•nt of this other inft)rmation. we are required to report that fact. We have nothing to wport in this regard. NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED Oplnlons on othor matt•rn prescrlbod by the Companlo• Act 2006 In our opinion, based on the wort( undertaken in the ￿Urse of our audit". the information given in the Trustees report for the finanaal year for which the financial statements are prepared, whi¢h Includ8S the directors, report prepared for the purposes of company law, is consistent wrth the financial statements., and the directors. report included within the Trustses report has been prepared in accordance with applicable legal requirements. Mattor• on whlch w• ar• requlrod to r•port by excoptlon In the light of the knowledge and unclerstanding of the National Z¢)ological Society of Wdles and its environment obtained in the course of the audit. have not identified material misstatements in th8 directors. report included within the Trustees report. We have nothing lo report in respect of the following matters in relation to which Ihe Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have nol been kept. or relums adéquate for our audit hav8 not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and retums.. or certain disclosures of Irustées. remuneratson speahed by law are not made. or we have nol received all the infomiats'on and explanations we require for our audit,. or the Trusl&8s were not enlilled lo prepare the finanaal slalements in accordance with the small companies regime and take advantage of the small companies, exemptions in prepanng the Trusteos report and from the raquirement to prepare a strategic report. R••pon•lbllltlM of Tru*l•o• As explained more fully in the statemenl of Trustees responsibilits'es, the Trustees, who are also the direclors of the National Zoological Soaety of Wales for the purpose of company law. are responsible for the preparation of the financial statements and for being satisfied that they give a trua and fair view. and for such inlemal control as the Trustees delerynine 1$ necessary to enable the preparation of financial statements that are free trom material misstat8menl, whether due lo tral￿ or error. In preparing the financial statements, the Trustees are responsible for assessing the National Zoological Soaety of Wales's ability lo conb.nue as a going concern, disclosing. as appIl￿ble. rnatters related to going concem and using the going concem basis of a￿OUnting unless the Trustees either intend lo liquidate the charitable ¢¢)mpany or to cease operations. or have no realists'c altemative but to do so. Audltorf• re¥pon•lbllltle• for th• audlt of th• fln•n¢l*l *tat•m•nts Our objectives are to obtain reasonable assurance about whether the finanual statements as a whole are free from material misslalement, whether due to fraud or error, and to issue an auditorfs report that indude5 our opinion. Reasonable a35urance 1$ a high level of assurance but 1$ not a guarantee that an audit conduded in accordance with ISAS IUKI will a￿ayS detect a material misstalemenl when rt exists. Misstatements can arise from fraud or error and are considèred material if, individually or in the aggregate, they could reasonably b8 expected lo influenr the economic decision$ of users taken on the basis of these finanaal staternents. The extant lo which our procedures are capable of deteth'ng irregulariti'es, induding fraud, is detailed below. 10- NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF NATIONAL ZOOLOGICAL SOCIETY OF WALES LIMITED Our approach lo identifying and assessing the risks of material misstatement in respect of irregularities. including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropnate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations,. we identified the laws and regulatr.ons applicable tov the company through oliscussions with directors and other managernent.. we focused on specific laws and regulats.ons which we conS￿red may have a direct material effect on the financial statements Of the operations of the company, induding the Companies Act 2006, taxation legislation and employment legislatson", we assessed the extent of compliance with the laws and regulations idenliffied above through enquires of management and inspecting legal correspondence.. and identified laws and regulations were communicated within the audit team regularty and the team remained alert to instsn¢e$ of non-￿mplI8n¢e through the audit. We assessed the susceptibility of th8 company's financial statements lo matenal misststement. induding obtaining an understanding of how fraud might occur, by.. making enquires of management as to vA)ere they Considered ihere was sugcgptibility lo fraud. their knowledge of actual. suspected and alleged fraud.. considefing the internal controls in placE lo mrtigale risks of fraud and nonrycompliancé with laws and regulations., and understanding the design of the company's remuneration policies. To address the nsk of fraud through management bias and override of controls, we. perforned analytical procedure5 to identify any unusual or unexpected rolatsonshipj.. tested journal entries lo identify unusual Iransath"ons', asse$$ed whether iudgemenls and assumptions made in detemiining the accounting estimates were indicative of potential bias.. and investigated the rationale behind significant or unusual transath"on$. In ￿spOnSe to Ihe risk of irregularities and non