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← West Belfast Development Trust Ltd

2025-06-30-annual-return

Audit Conclusions Report for West Belfast Development Trust

[Year]

Audit Conclusions Report

Audit Conclusions Report for West Belfast Development Trust

Contents

Contents
1. Introduction ......................................................................................... 2
2. Key Messages .................................................................................... 3
3. Upcoming Changes to Companies House Filing Requirements ........ 4
3.1 Changes in Charity SORP .................................................................. 5
4 Audit Fieldwork ................................................................................... 6
5. Audit and system objectives and summary of observations .............. 7 5. Audit and system objectives and summary of observations .............. 7
6 Other areas ........................................................................................ 11
7 Management Report ......................................................................... 12
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Audit Conclusions Report for West Belfast Development Trust

1. Introduction

1.1 Overview

International Standard on Auditing (UK and Ireland) 260 requires us to communicate significant matters arising from our audit to you in writing. The purpose of this report is to provide West Belfast Development Trust with the outcome of the external audit for the year ended 30[th] June 2025 and to outline key matters that came to our attention as a result of the audit.

We are required by the Financial Reporting Council’s Ethical Standard to inform you of all significant facts and matters that may bear upon the integrity, objectivity and independence of our firm. There are no such matters which we need to bring to your attention.

The report includes the outcome of testing performed against the key risks identified at the planning stage and management letter points. Section 2 of the report is designed to provide an ‘at a glance’ overview of the outcome of the audit.

The report includes detailed management letter points which are designed to include useful recommendations that may help improve performance and avoid weaknesses that could lead to material loss or misstatement and should not be construed as a criticism of any individual. Examples of perceived risks which may arise from the observations are also noted. These risks should act only as a guide for areas which could be reviewed as part of an assessment of the risks currently faced by the organisation. These matters have been discussed with finance staff and we have included their responses where appropriate, together with a summary of the agreed action plan, which may be useful as a checklist.

1.2 Audit Delivery

Finegan Gibson Ltd performed the audit between November and December 2025. The audit involved preliminary audit work, a systems review looking at the various controls in place and assessing the risk of material misstatement, the audit of the balance sheet and Statement of Financial Activities (‘SOFA’). A full audit of each category of the balance sheet was performed, whilst the SOFA was tested on a sample basis.

The staff who participated in the audit were:

Paul Dolan (Partner)

Courtney Mills (Audit Manager) Caitlin Felloni (Senior Associate) Carla Morelli (Associate)

Faith Broggy (Associate)

The reports are provided on the basis that it is for the information of the Board of Trustees; that it will not be quoted or referred to, in whole or in part, without our prior written consent; and that we accept no responsibility to any third party in relation to it.

1.3 Acknowledgement

We would like to take this opportunity to acknowledge the courtesy and assistance extended to us by West Belfast Development Trust personnel during the course of our audit.

Routine audit work is designed to enable an opinion on the financial statements of the companies concerned and should not be relied upon to disclose all irregularities that may exist nor to disclose errors that are not material in relation to the financial statements.

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Audit Conclusions Report for West Belfast Development Trust

2. Key Messages

2.1 Audit Opinion

The results of our audit work indicate that the financial statements of the charity are free of material misstatements and are represented fairly in accordance with the Generally Accepted Accounting Principles (FRS102). Thus, we have issued an unqualified audit report on the financial statements.

2.2 Going concern, liquidity

Throughout our audit we reviewed for the existence of any material uncertainties that may cast significant doubt on the charity’s ability to continue as a going concern.

We draw attention to the operational surplus of £11,019 reported for the year ended 30th June 2025. The charity’s reserve policy aims to maintain unrestricted funds at a level equivalent to three to six months’ expenditure, excluding any designated unrestricted funds. We can confirm that this target has been achieved, with unrestricted reserves of £372,778 at year end.

During the year, the charity experienced an increase in income, which was broadly offset by a corresponding rise in expenditure. A significant contributor to the increase in income was rental revenue of £23k, which is a positive development. However, as noted elsewhere in this management letter, the rental agreements should be updated to formally reflect this increase.

nil balance for both current and non-current loan liabilities, which is a positive outcome, particularly as the loan was not due for repayment until 2026.

We also note a decrease in the cash at bank balance of approximately £50,000. Nonetheless, we welcome the charity’s approach of placing funds into deposit accounts to earn additional interest—a prudent measure for any charitable organisation seeking to optimise returns on available funds.

The charity has been actively developing two key consultancy areas: oneoff innovation projects and social value initiatives. These are expected to enhance the charity’s financial position further. With the anticipated additional income from these initiatives, the charity plans to utilise reserves strategically over the next ten years to maintain its assets in line with its long-term maintenance plan.

Overall organisational financial stability, cashflow, liquidity and outcome management should continue to be a key priority for West Belfast Development Trust and remain under ongoing review with budgets and forecasts reviewed and checked on a regular basis.

It is our understanding that the Trustees consider it appropriate for the financial statements for the year ended 30[th] June 2025 to be prepared on a going concern basis, covering a period of 12 months from the date of signing. We recommend that the Trustees continue to regularly review and validate budgets and forecasts to ensure they remain responsive to any future developments or emerging risks that may not yet be known.

Expenditure also increased during the year, most notably due to higher legal costs of £17.7k. In addition, a bad debt provision of £9k was recognised in the current year, whereas no such provision was required in the prior year. Aside from these specific increases in expenditure, it is important to highlight that the charity fully repaid its bank loan during the year. This resulted in a

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Audit Conclusions Report for West Belfast Development Trust

2.3 Fraud

West Belfast Development Trust maintains a fraud policy which is reviewed and updated by the Board on a regular basis. This document sets out the policy and procedures that address fraud and other forms of dishonesty, together with the steps that must be taken where any of these practices are suspected or discovered.

The policy applies to all staff and Directors and is communicated to each member of staff during their induction training and reinforced as part of the annual refresher training each year.

3. Upcoming Changes to Companies House Filing Requirements

From 1st April 2027 , significant changes will be introduced to the way companies file their accounts with Companies House. The three key changes are outlined below:

1. Mandatory Digital Filing

All companies, including charities, will be required to file their accounts digitally in iXBRL (Inline eXtensible Business Reporting Language) format. Paper submissions will no longer be accepted by Companies House.

2. Software-Only Submissions

Companies must use third-party software that is compatible with Companies House systems for submitting accounts. The current web-based filing service will be phased out for accounts-related submissions.

3. Enhanced Disclosure Requirements

Small and micro-entity companies will now be required to file both a profit and loss account and a director’s report. As a result, abridged or filleted accounts will no longer be permitted.

Additional Notable Changes:

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Audit Conclusions Report for West Belfast Development Trust

3.1 Changes in Charity SORP

4. Income Recognition

The new SORP comes into effect for accounting periods starting on or after 1 January 2026, this will be required for period ended 30[th] June 2027. It is designed to keep reporting proportionate, increase transparency, and align charities with wider accounting updates

1. Tiered Reporting Framework

2. Trustees’ Annual Report

Charities must provide a clearer and more engaging narrative in their annual reports. This includes explaining the impact of activities, the role of volunteers, the reserves policy (and why it is appropriate), and future plans.

3. Lease Accounting

Now, most leases must be shown on the balance sheet as both a right-ofuse asset (the benefit of using the item) and a lease liability (future payments owed). This means balance sheets will look larger, and costs will appear as depreciation and interest rather than simple rent. Exemptions remain for short-term leases (under 12 months), low-value items (like laptops), and peppercorn leases (below-market rents for charitable use). Trustees may need to explain how this affects reserves and financial results.

Currently, income recognition can be inconsistent, especially for contracts and service delivery. The new SORP introduces a clearer five-step model for exchange income (where charities provide goods or services in return for payment):

  1. Identify the contract – confirm there is an agreement in place.

  2. Identify performance obligations – separate out the specific goods or services promised.

  3. Determine the transaction price – agree how much the charity expects to receive.

  4. Allocate the price – fairly split the income across the obligations.

  5. Recognise income – only when each obligation is delivered.

Non-exchange income (such as donations, legacies, and most grants) will continue under the existing rules — normally recognised when entitlement, probability, and measurability are clear.

Impact:

We will continue to update the Board of Trustees and management with any changes relevant to the Charity.

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Audit Conclusions Report for West Belfast Development Trust

4 Audit Fieldwork

Final Audit

At our visit, we began our audit work and a systems review was performed, looking at the various controls in place and assessing the risk of material misstatement. Auditing standards require us to consider the areas within the financial statements that are at greater risk of misstatement and focus our testing on those areas. The high-risk areas highlighted at the planning stage of the audit were:

Throughout the audit process, further systems work took place, Statement of Financial Position (‘SOFP’) and the Statement of Financial Activities (‘SOFA’) values were audited. A full audit of each category of the SOFP was performed, whilst the SOFA was tested mainly on a sample basis.

The audit covered the following areas in detail:

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Audit Conclusions Report for West Belfast Development Trust

5. Audit and system objectives and summary of

observations

5.1 Corporate Governance

Objective

To ensure that corporate governance arrangements are adequate.

Approach

5.2 Monthly Reporting

Objective

To ensure that monthly reporting is accurate and complete.

Approach

Observations

No observations to note.

Recommendations post audit

No recommendations to note.

Observations

No observations to note.

Recommendations post audit

No recommendations to note.

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Audit Conclusions Report for West Belfast Development Trust

5.3 Income, Credit Control and Debtors

Objective

To ensure an adequate system exists where all monies received by the Charity are accurately recorded, receipted, and lodged to the bank, adequate credit control procedures are in place and the year-end debtors are accurate.

5.4 Procurement, Payments and Creditors

Objective

To ensure the procurement system provides a transparent, fair and effective means of buying goods and/or services consistent with achieving value for money and creditor balances at the year end are accurate.

Approach

Approach

Observations

No observations to note.

Recommendations post audit

No recommendations to note.

Observations

No observations to note.

Recommendations post audit

No recommendations to note.

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Audit Conclusions Report for West Belfast Development Trust

5.5 Banking

Objective

To ensure appropriate systems and procedures are in place covering lodgements, withdrawals, and administration of the bank accounts.

5.6 Wages and salaries

Objective

To ensure bona fide employees are remunerated at agreed levels within agreed timescales and that the administration and recording of payroll is performed efficiently and effectively.

Approach

Approach

Observations

During testing of the bank reconciliations, no evidence of review was identified.

Recommendations post audit

See management report point 1.

Observations

Payroll control accounts are currently not in use.

Recommendations post audit

See management report points 2 .

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Audit Conclusions Report for West Belfast Development Trust

5.7 Fixed assets

Objective

To ensure fixed assets are secure, identifiable, insured and accounted for appropriately.

Approach

5.8 Investments

Objective

To verify the existence, valuation, and proper recording of the charity’s investments in the financial statements, and to ensure that all investmentrelated income, gains, and fees are accurately accounted for in accordance with applicable accounting standards and the Charity SORP.

Approach

Observations

During testing we noted that quotations were not obtained for two fixed asset additions and that whilst completing our fixed asset verification, that two assets were identified on the fixed asset register which were no longer held by West Belfast Development Trust and as a result should have been written off.

Recommendations post audit

See management report point 3 and 4.

Observations

No observations to note.

Recommendations post audit

No recommendations to note.

.

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Audit Conclusions Report for West Belfast Development Trust

6 Other areas

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 Generally Accepted Accounting Principles (GAAP) applicable to the entity. 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 fraud, 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

No misstatements were noted in the course of the audit.

Difficulties encountered during the audit

No difficulties were encountered during the audit.

Related parties

You have confirmed to us your knowledge of related party transactions and we have nothing further to report in this regard.

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 such subsequent events.

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Audit Conclusions Report for West Belfast Development Trust

7 Management Report

In light of the preceding observations, Finegan Gibson has developed the following management report.

This report highlights control weaknesses and recommendations which came to our attention during the audit fieldwork performed. The information is only provided for the attention of the Board.

In our Management Report, we have graded our observations:

We can confirm a total of 4 recommendations within this report, which include 0 grade one observations, 3 grade two observations and 1 grade three observations.

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Audit Conclusions Report for West Belfast Development Trust

# Issue Risk(s) Grade Recommendation Management
Response		 Responsibility
& Target Date
Bank
1. During the testing of
bank
reconciliations, in
one instance there
was no evidence of
management review		 The lack of documented review on bank
reconciliations, increases the risk that errors,
omissions, or unauthorised transactions may remain
undetected, potentially impacting the accuracy and
reliability of financial records		 3 We recommend that management
implement and enforce
procedures requiring all bank
reconciliations to be
independently reviewed and
approved on a timely basis, with
appropriate evidence of review
retained in accordance with the
financial procedures manual		 We will ensure
this takes place
each month. All
payments made
by Work West
are reviewed,
approved and
processed by
both the CEO
and the
treasurer.		 Claire Ferris
February 2026
Wages and Salaries
2. It was noted during
our testing of wages
and salaries, that
payroll control
accounts are not
currently in use		 The absence of payroll control accounts increases
the risk that payroll costs, deductions and liabilities
may not be accurately recorded or reconciled,
potentially resulting in errors, misstatements, or
unauthorised payments remaining undetected.		 2 We recommend that management
implement payroll control
accounts and perform regular
reconciliations between payroll
records and the general ledger to
strengthen controls over payroll
processing and reporting		 This has been
raised before
but this year
with the change
in arrangements
for payroll and
finance being
outsourced to
Finnegan
Gibson we will
implement.		 Finnegan Gibson
team, March
2026
Fixed Assets
3. On two occasions,
fixed asset
additions were
made without
obtaining the
required quotations		 Failure to obtain quotations for fixed asset additions
in accordance with the financial procedures manual
increases the risk of non-compliance with internal
controls and procurement policies. This may result
in poor value for money, unauthorised expenditure,
or increased exposure to fraud.		 2 All fixed asset additions should be
supported by the required number
of quotations in line with the
financial procedures manual.
Management should reinforce
compliance with procurement
procedures and implement a
review process to ensure		 These two
occasions
related to pigeon
netting and as I
understand
comparable
contractors were
not identified as		 Claire Ferris
February 2026

Audit Conclusions Report for West Belfast Development Trust

as per the financial
procedures manual		 quotations are obtained,
documented and approved prior to
acquisition of fixed assets.		 the current pest
control
contractor
offered this
service and it
was difficult to
source others as
it is a specialist
area. The
second instance
I was unable to
locate the other
two quotations
due to the
change in
personnel. We
are in the
process of going
out to
contractors to
develop a
preferred
suppliers list
which will make
the process
more
straightforward.
4. During the fixed
asset verification, it
was noted that two
assets recorded in
the fixed asset
register are no
longer held and
should have been
written off		 Failure to write off assets that are no longer held
results in an overstatement of fixed assets and may
lead to inaccurate financial reporting. This weakens
asset management controls and increases the risk
of misappropriation, loss or ineffective tracking of
assets		 2 Assets that are no longer held
should be promptly identified and
written off in the fixed asset
register and then reflected on the
accounting system.
Management should strengthen
fixed asset management
procedures by conducting regular
fixed asset verifications and
ensuring timely updates to the
register, including appropriate
approvals of disposals and write
offs.		 The fixed asset
register needs to
be updated and
reviewed
monthly. This
work has
started.		 June 2026

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Audit Conclusions Report for West Belfast Development Trust

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