ARC HEALTHY LIVING CENTRE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ARC HEALTHY LIVING CENTRE LIMITED Opinion We have audited the financial statements of ARC Healthy Living Centre Limited {the 'charity'l for Ihe year ended 31 March 2024 which comprise the statement of financial activiiies. the balance sheet, the stalemenl of cash flows and the notes to the financial statements. 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 Financial Reporting Standard 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 slate of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure. for the year then ended., have been properly prepared in accordan￿ 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 with International Standards on Auditing (UK} IISAS {UK}} and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilities for Ihe audil of the financial statements section of our report. We are independent of the charity in accordance wilh the ethical requirements that are relevant to our audit of the accounts 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 opinior). Conclusions relating to going concern In auditing the financial statements. we have concluded that the trustees. use of the going concern basis of accounling in the preparation of the financial statements is appropriato. 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 signrficant doubt on the charity's ability to continue as a going concern for a period of al least hvelve months from when the financial sialements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other infomiation comprises the infomiation included in the annual report other than the financial statements and our auditorfs report Ihereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other information and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit. or otherwise appears lo be materially misstated. If we idenb-fy such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the linancial stalemenls themselves. 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 Irustees. report for the financial year for which the financial statements are prepared, which includes the directors, report prepared for the purposes of company law, is consistent with the rinancial slatemenls.. and the directors, report included within the trustees. report has been prepared in accordance with applicable legal requirements. 13- ARC HEALTHY LIVING CENTRE LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ARC HEALTHY LIVING CENTRE LIMITED Matter5 Qn which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material mi5Statements in the directors. report included wilhin the trustees. report. We have nothin9 to report in respect of the following matters in relation to which the Companies Act 2006 requires us lo report to you if. in our opinion- adequate accounting records have not been kept. or retums adequate for our audit have not been received from branches not visiled by us,. or the financial statements are not in agreement wilh the accounting records and retums- or certain disclosures of IrLJslees' remuneration specified by law are not made-, or we have not received all the information and explanations we require for our audit- or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies. exemptions in preparing the trustees. report and from the requirement to prepare a strategic report. Responsibilitie5 of trustees As explained more fully in the statement of trustees. responsibilities, the Irustees, who are also Ihe direclors of the charity for the purpose of company law, are responsible for Ihe preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of financial statements that are free from malerial misstatement, whether due lo fraud or error. In preparing the financial slalements, the trustees are responsible for assessing the charity's ability to conlinue as a going concem. disdosing, as applicable. matters related to going concem and using the going concern basis of accounting unless the trustees either intend to liquidate the charilable company or to cease operations. or have no realistic altemative but to do so. Auditorfs 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 delect a material misstatement when it exists. Misstatemenls can arise from fraud or error and are considered material if. individually or in the aggregate. they Could reasonably be expeded to influence the economic decisions of users taken on the basis of these financial slalements. The extent to which our procedures are capable of detecting itregularities, including fraud, is detailed below. Extent to which the audit was considered capable of detecting irregularities. including fraud The objectives of our audit in respect of fraud, are: to identify and assess the risks of malerial misstatement of the financi81 statements due to fraud," to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud. through designing and implementing appropriate respon5e5 to those assessed risks,. and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests wth both management and those charged with governance of the charitable company. Based on our understanding of the charrtable company and its operating environment. we determined that the most significant frameworks which have a direct impact on the preparation of the financial statements are those related to the reporting framework, {FRS 102. the Charilies Act (Northem Ireland) 2008. The Charilies (Accounls and Reports) Regulations {Northem Ireland) 2015, the Charity SORP and the Companies Act 2006). Additionally. we concluded that there are significant laws and regulations in relalion lo the company's charitable slatLJS and activities of which non-compliance may have a material effect on the financial statements. We assessed the susceptibility of the charitable company's financial statements to material misstatement, including how fraud might occur, including evaluating management's incenlives and opportunities to manage earnings or influence the reported resulls. From Ihe results of our assessment. we determined that the principal risks of fraud relate to posting inappropriate journal entries and use of charity fun(Js for purposes outside of restrictions itnposed by the donor_ In common with all audits under ISAS (UK). we are required to perform specific procedures to respond to the risk of managernent override. 14- ARC HEALTHY LIVING CENTRE LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ARC HEALTHY LIVING CENTRE LIMITED Audit response to risks identified As part of an audit in accordance with ISAS IUKI we exercise professional judgement and maintain professional scepticism throughout the audit. Audit procedures performed by the engagement team included- We obtained an understanding of the charitable company's internal control systems in order to design audit procedures that are appropriate in the circumStan￿s. but not for the purposes of expressing an opinion on the effectiveness of the charitable company's internal control. We obtained an understanding of how the charitable company complies with relevanl laws and regulations. including those as a result of its registration with the Charity Comrnission for Northern Ireland and charitable status with HM Revenue & Customs . by making enquiries of management and those charged with governance. Enquiry of management. those charged with govemance and the entitys solicitors around actual and potential litigation and claims. Enquiry of entity staff to identify any instances of non-compliance with laws and regulations. Performing analytical procedures to identify any unusual or unexpecled relationships that may indicate risks of material misstatement due to fraud Reviewing minutes of meetings of those charged with govemance Reviewing financial statement disc105ures and testing to supporting documentation to assess compliance with applicable laws and regulations. We test the completeness of income lo address the risk of fraud in revenue recognition. Auditing the risk of management override of controls: including through testing journal entries and other adjuslments for appropriateness, and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business. Auditing the risk of use of charity funds outside of restrictions imposed by the donor by review of funding letters of offer to identify restrictions, and review of funding claims prepared by management to check compliance with restrictions. We communicated relevant laws and regulations and potential fraud risks lo all engagement team members, and remained alert lo any indications of fraud or non