ACTION MENTAL HEALTH (LIIVIITED BY GUARANTEE) LIIAR'fARLII) ACL'()UN'fANTS INDEPENDENT AUDITOR'S REPORT TO THE DIRECTORS OF ACTION MENTAL HEALTH OPINION We have audited the financial accounts of Action Mental Health (the 'charitable company,) for the year ended 31 March 2023 which comprise the statement of financial activities, summary income and expenditure account, balance sheet, statement ofcash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2023, and of the charitable company's incoming resources and application of resources, including its income and expenditure, for the year then end8d', have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006, BASIS FOR OPINION We conducted our audit in accordance wlth International Standards on Auditing (UK) IISAS {UK>} and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 obtained is sufficient and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements, we have concluded that the Directors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to golng concern are described in the relevant sections of this report. 17 Mandeville Sti'eet PORTADOWN Craigavon BT62 3PB Tel..+44 (0)28 3833 2801 +44 (0)28,3835 0293 'I'L.1: ,14 (11)'Jll £):'.()(> 7.'45f 4TIAG' ChArteredAc(oiintnn15 1 RoRlsterOdAiidiio l LlliirlercdlAI1I1SoI* I J.'rJKr'iislc Attouiitli nt5 | CO1[t 1lii)èntEAilwrK GMCG. isotradinR TrainpDIGNlcGGroup l.irnitcd. IlcBNTr.. NIosyfi6u. l.islnfDirLL,1r&JVi1iIllb1ets1 i¢81sti'rL.dofficÉ www.gniegca.com
ACTION MENTAL HEALTH (LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF ACTION MENTAL HEALTH OTHER INFORMATION The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information, Our opinion on the financial stat8ments does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the flnancial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the finanGial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the course of our audit.. the information given in the Directors, Report, which includes the trustees, report prepared for the purposes of charity law, for the financial year for which the financial statements are prepared is consistent with the financial statements., and the directors, report has been prepared in accordance with applicable legal requirements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of the knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not identified material mlsstatements in the directors, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us lo report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. RESPONSIBILITIES OF DIRECTORS As explained more fully in the directors. responsibilities staloment on page 9, tho directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 12
ACTION MENTAL HEALTH (LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF ACTION MENTAL HEALTH AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Mi5Statements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial accounts. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uldauditorsresponsibilities. This description forms part of our auditor's report. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, Is detailed below. EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD We Identify and assess the risks of material mlsstatement of the fir)ancial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence Ihal is sufficient and appropriate to provide a basis for our opinion. In identifying and assesslng potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following: The nature of the charitable company's activities and control environment., Results of our enquiries of management about their own identification and assessment of the risks of irregularities-, Any matters we identified having obtained and reviewed the charitable company's documentation of their policies and procedures relating to.. Identifying, evaluating and complying with laws and regulations and whether they were aware of any instance of non-compliance., Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud., and The internal controls established to mitigate risks of fraud or non-compliance with laws and regulalions., The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the charitable company for fraud and identified the greatest potential for fraud in unauthorised use of funds and revenue recognition such as fictitious or duplicate funding applications. In common with all audits under ISAS (UK), we are also required to perform specific procedures to respond to the risk of management override. 13
ACTION MENTAL HEALTH (LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF ACTION MENTAL HEALTH EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD (Continued) We also obtained an understanding ofthe legal and regulatory frameworks that the charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty. AUDIT RESPONSE TO RISKS IDENTIFIED Our procedures to respond to the risks identified included the following: Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; Enquiring of management concerning actual and potential litigation and claims., Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud., Reviewing and testing the operation of controls., Reading minutes of meetings of those charged with governance and reviewing correspondence with authorities., and In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments,. assessing whelher the judgements made in making accounting estimates are indicative of a potential bias., and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communlcated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may nol have delected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions. misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 14
ACTION MENTAL HEALTH (LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF ACTION MENTAL HEALTH USE OF OUR REPORT This report is made solely to the charitable company's directors, as a body, in accordance with the terms of our engagement. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilily to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Gillian Johnston ACA (Senior Statutory Auditor) For and on behalf of GMCG BELFAST Chartered Accountants Statutory Auditor Alfred House 19 Alfred Street Belfast BT2 8EQ Date: 15