Our Ref: 6875/PD/CM Date: 3[rd] March 2023 ## **Private & Confidential** Board of Directors West Belfast Development Trust Limited T/A Work West 301 Glen Road Belfast BT11 8BU Dear trustees ## **REPORT TO THOSE CHARGED WITH GOVERNANCE** The audit of the financial statements of the West Belfast Development Trust Limited for the year ended 30 June 2022 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 FRS 102. 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 for the next 12 months. 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. ## **Misstatements** During the course of the audit, a number of misstatements were identified. Please see Appendix 1 for details of adjusted and unadjusted differences. ## **Related parties** _This report has been prepared for the sole use of those charged with governance of West Belfast Development Trust Limited 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._ 1 Apart from the additional disclosures described in Appendix 1, 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, 0 priority 1, 0 priority 2 and 3 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 the Work West 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 West Belfast Development Trust Limited 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._ 2 _**APPENDIX 1: Schedule of adjustments**_ ## **Adjusted audit differences:** |**No.**|**Nature/reason**|**Account**|**Adjusting journals**|**Adjusting journals**|**Adjusted**
**SOFA effect**|**Adjusted B/S**
**effect**| |---|---|---|---|---|---|---| ||||**Dr**|**Cr**|**£**|**£**| |||||||| |||||||| |||||||| |||||||| ||**See Appendix 1 for adjustments**|||||| |||||||| |||||||| |||||||| |||||||| |||||||| |||||||| |||||||| |||||||| |||||||| _This report has been prepared for the sole use of those charged with governance of West Belfast Development Trust Limited 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._ 3 _**APPENDIX 2: Management Letter**_ |**#**|**Issue**|**Risk**|**Grade**|**Recommendation**|**Management**
**Response**|**Responsibility &**
**Target Date**| |---|---|---|---|---|---|---| |**Creditors**||||||| |1.|There is around £5.4k of
an old outstanding credit
balance on the creditor’s
ledger at year end.|There is a risk some of
these creditors no longer
exist.
The charity’s creditors may
be misstated.|2|We
recommend
that
the
creditors ledger is reviewed on a
monthly basis to ensure that any
outstanding creditor balances
are valid and corrected.|We are reviewing
these (rates) on a
monthly basis and
are releasing them
as appropriate.|| |2.|There
is
large
accrued
balance on the charity’s
balance sheet, some of
which has been outstanding
for a significant amount of
time.
There
is
limited
evidence to support some of
these balances.
It has been noted that the
charity
has
started
to
release some of the accruals
over a period.|As they age, the likelihood of
paying
these
creditors
reduces. There is a risk that
some of these creditors no
longer exist, and the balance
is overstated.|2|The trustees should review these as
a matter of priority. Each balance
should be reviewed in detail, to
ensure that an obligation to pay still
exists, and the amount is valued
correctly.
Any
valid
creditor
balances should be settled as soon
as possible. Balances which cannot
be substantiated should be written
off.|These are
reviewed
regularly by staff
and appropriate
decisions made
in terms of
release. They
are also
reviewed by the
finance
committee
during the year|| |**Wages**||||||| |||||||| _This report has been prepared for the sole use of those charged with governance of West Belfast Development Trust Limited 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._ 4 _**APPENDIX 2: Management Letter**_ |**#**|**Issue**|**Risk**|**Grade**|**Recommendation**|**Management**
**Response**|**Responsibility &**
**Target Date**| |---|---|---|---|---|---|---| |3.|Wages control accounts
are not in use for PAYE,
pension and net pay,
meaning that liabilities
are
recognised
on
a
payment’s basis, instead
of on an accrual’s basis.|The charity has no record of
the amounts owed to both
staff and HMRC at any one
time. Liabilities could easily
go unpaid, incurring fines
from HMRC.|2|We
recommend
control
accounts are set up for all payroll
liabilities,
monthly
payroll
journals are posted and control
accounts
reconciled
on
a
monthly basis.|The current
system works
effectively and
negates the
need for control
accounts. Salary
and PAYE are
paid at the point
of doing payroll.
Only one
pension is
dependent on
payroll and is
paid at this time
also. 3 pensions
are independent
of payroll and
paid by DD.|| |||||||| _This report has been prepared for the sole use of those charged with governance of West Belfast Development Trust Limited 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._ 5