Our Ref: 6745/PD/MMCM Date: 14/11/23
Private & Confidential
Board of Trustees Engage with Age East Belfast Network Centre 55 Templemore Avenue Belfast Co. Antrim BT5 4FPX
Dear Sirs/Madams,
REPORT TO THOSE CHARGED WITH GOVERNANCE
The audit of the financial statements of Engage with Age for the year ended 31[st] March 2023 is complete. In line with Auditing Standards, we are writing to advise you of audit conclusions, significant matters arising during the course of the audit and other matters which are significant to the financial reporting process.
As auditors, we are responsible for forming and expressing an opinion on the financial statements that have been prepared with the oversight of those charged with governance. As such, our tests are designed to assist us in forming our opinion and should not be relied upon to disclose all errors, irregularities or control deficiencies that exist. The audit does not relieve management or those charged with governance of their responsibilities.
Audit opinion
The results of our audit work indicate that the financial statements presented are free of material misstatements and are represented fairly in accordance with the Generally Accepted Accounting Principles (GAAP). Thus we have issued an unqualified audit report on the financial statements.
Going concern
During the course of the audit, we did not identify or become aware of any events or conditions that may cast a significant doubt on the entity’s ability to continue as a going concern. As a result, we concur with your assessment that the use of the going concern assumption is appropriate in the preparation and presentation of the financial statements.
Fraud
Auditing standards require us to report any identified frauds, indications of fraud or any other relevant matters related to fraud. We have nothing to report in this regard.
Laws and regulations
No matters involving non-compliance with laws and regulations came to our attention during the course of the audit apart from those raised within the body of this report.
This report has been prepared for the sole use of those charged with governance of Engage with Age and must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report.
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Misstatements
During the course of the audit, no material misstatements were identified.
Related parties
No significant matters arose during the audit in connection with related parties.
Subsequent events
We performed procedures designed to obtain sufficient appropriate audit evidence that all events occurring between the date of the financial statements and the date of the audit report that require adjustment, or disclosure in, the financial statements have been identified. Audit procedures identified no subsequent events.
Internal control
During the course of the audit we identified a number of recommendations in relation to improving the internal control framework of the organisation. In summary, no priority 1, one priority 2 and no priority 3 observations were noted. These are set out in detail at Appendix 2.
We have graded our management report observations as follows:
| Priority 1 | An issue which requires urgent management decision and action without which there is a substantial risk to the achievement of key business/system objectives, or to the reputation of the organisation. |
|---|---|
| Priority 2 | An issue which requires prompt attention, as failure to do so could lead to a more serious risk exposure. |
| Priority 3 | Improvements that will enhance the existing control framework and/or represent best practice. |
Acknowledgement
We would like to take this opportunity to acknowledge the courtesy and assistance extended to us by Engage with Age personnel during the course of our audit. Yours faithfully,
Finegan Gibson Ltd
Chartered Accountants & Registered Auditors
This report has been prepared for the sole use of those charged with governance of Engage with Age and must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report.
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APPENDIX 1: Schedule of Adjustments
Adjusted audit differences:
No. |
Account |
Nature/ Reason |
Adjusting journals | Adjusting journals | Adjusted SOFA effect |
Adjusted B/S effect |
|---|---|---|---|---|---|---|
| Dr | Cr | £ | £ | |||
| 1 | Donations | Correct write- off of debtor |
5,000 | 5,000 | - | |
| Bad debt expense | Correct write- off of debtor |
5,000 | (5,000) | - | ||
| Being journal to correct recognition of debtor write-off |
Unadjusted audit differences:
| No. | Account | Nature/ Reason |
Adjusting journals | Adjusting journals | Adjusted SOFA effect |
Adjusted B/S effect |
|---|---|---|---|---|---|---|
| Dr | Cr | £ | £ | |||
| 1 | Belfast CityCouncil | Debtor | 1,015 | 1,015 | ||
| Accrued income | Debtor | 1,015 | 1,015 |
This report has been prepared for the sole use of those charged with governance of Engage with Age and must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report.
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APPENDIX 2: Management Letter
| No | Issue | Risk | Grade | Recommendation | Management Response |
Responsibility & Target Date |
|---|---|---|---|---|---|---|
| Creditors | ||||||
| **1. ** | During the testing of aged creditors, it was noted that there was a negative balance on the report which occurred when invoice was paid twice. |
There is increased risk of loss of charitable funds where invoices are paid twice in error. |
2 | Payments of invoices should be reviewed and ensured that only outstanding invoices should be paid. |
This report has been prepared for the sole use of those charged with governance of Engage with Age and must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report.
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