Page 4
YOUTH FOR CHRIST INTERNATIONAL FOUNDATION FOR THE NATIONS
TRUSTEES ANNUAL REPORT (continued)
YEAR ENDED 31 DECEMBER 2020
FINANCIAL REVIEW
Reserves policy
It is the policy of the charity to maintain free reserves which matches the needs of the trust, both at the current time and in the foreseeable future. This provides sufficient funds to cover running costs which include management, administration and support costs. Free reserves are those unrestricted reserves not designated nor invested in fixed assets which are available for general use.
FINANCIAL REVIEW (continued)
Reserves policy (continued)
As at 31 December 2020 the charity has total funds carried forward of £169,514 (2019: £111,575) of which £23,426 (2019: £23,857) are unrestricted, and it has free reserves carried forward of £23,426 (2019: £23,857).
Funding
The principal funding is from donations.
PLANS FOR FUTURE PERIODS
The Trustees are continuing to discuss succession planning for the charity and have made significant progress in this area during the year.
RESPONSIBILITIES OF THE TRUSTEES
The charity's trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in Northern Ireland requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.
In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP 2019 (FRS 102);
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities’ legislation for Northern Ireland and the provisions of the trust deed. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Page 5
YOUTH FOR CHRIST INTERNATIONAL FOUNDATION FOR THE NATIONS
TRUSTEES ANNUAL REPORT (continued)
YEAR ENDED 31 DECEMBER 2020
RESPONSIBILITIES OF THE TRUSTEES (continued)
In so far as the trustees are aware:
-
. There is no relevant audit information of which charity’s auditors are unaware; and
-
. The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITOR
Jackson Andrews offer themselves for re-appointment as auditor for the ensuing year.
Signed on behalf of the trustees
Dr John Donaldson Chairman of the Board of Trustees
Date:
Page 6
YOUTH FOR CHRIST INTERNATIONAL FOUNDATION FOR THE NATIONS
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF YOUTH FOR CHRIST INTERNATIONAL FOUNDATION FOR THE NATIONS
YEAR ENDED 31 DECEMBER 2020
Opinion
We have audited the financial statements of Youth For Christ International Foundation For The Nations for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and 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 state of the charity’s affairs as at 31 December 2020, and of its incoming resources and expenditure of resources, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Charities Act (Northern Ireland) 2008.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including FRC’s Ethical Standard, and we have fulfilled our 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 trustees’ 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 trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information other than the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, the related notes and our auditor’s report thereon.
In connection with our audit of the financial statements, our responsibility is to 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 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.
Page 7
YOUTH FOR CHRIST INTERNATIONAL FOUNDATION FOR THE NATIONS
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF YOUTH FOR CHRIST INTERNATIONAL FOUNDATION FOR THE NATIONS (continued)
YEAR ENDED 31 DECEMBER 2020
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 require us to report to you if, in our opinion:
-
the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 4, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees 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 trustees are responsible for assessing the charity’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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 65(2) of the Charities Act (Northern Ireland) 2008 and report in accordance with regulations made under section 66 of that Act.
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. Misstatements 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 statements.
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 specific procedures for this engagement and the extent to which these 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 misstatement of the financial statements, whether due to fraud or error, and then design and perform the audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
Audit response to risks identified:
-
the nature of the industry and sector, control environment and charity’s financial results and position;
-
current COVID-19 environment
-
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
Page 8
YOUTH FOR CHRIST INTERNATIONAL FOUNDATION FOR THE NATIONS
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF YOUTH FOR CHRIST INTERNATIONAL FOUNDATION FOR THE NATIONS (continued)
YEAR ENDED 31 DECEMBER 2020
Auditor’s responsibilities for the audit of the financial statements (continued)
Audit response to risks identified (continued) :
-
any matters we identified having obtained and reviewed the Charity’s documentation of their policies and procedures relating to:
-
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances 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 regulations;
-
the matters discussed among the audit engagement team and involving relevant internal specialists 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 that the particular areas in the financial statements that were susceptible to misstatement were related to management bias in accounting estimates and judgements; recognition, classification and completeness of income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Charity 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 Charity legislation applicable to Northern Ireland, Charity’s governing document, employment law, health and safety and 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 Charity’s ability to operate or to avoid a material penalty.
Our procedures to respond to risks identified include the following:
-
identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
-
reviewing the financial statements 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 and external legal advisors concerning actual and potential litigation and claims;
-
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatements due to fraud;
-
reading minutes of meetings of those charged with governance;
-
obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition; and
-
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments including those relating to revenue recognition; assessing whether the judgements made in making accounting estimates are indicative of potential bias; and evaluating the rationale of any significant transactions that are large, unusual or outside the normal course of the charity’s activities.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement teams members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.