Page 10 Development Trusts (Nl) Limited Company Limited by Guarantee Independent Auditorfs Report to the Members of Development Trusts (Nl) Limited Year ended 31 March 2023 Opinion We have audited Ihe financial statements of Development Trusts (Nl) Limited {the 'charty') for the year ended 31 March 2023 vthich comprise the slaternenl of financial activities (including income and expenditure account). statement of financial position and the ￿lated notes. including a summary of significant accounting policies. The financial reporting framework thal has been applied in Iheir preparation 15 appltcable law and United Kingdom Accounting Standards. including FRS 102 The Financial Reporting Slandard applicable in the UK and Republic of Ireland {Untled Kingdom Generalty Accepted Accounting Practice). In our cyinion the financial stalernents: give a true and fair view of the state of the charivs affairs as at 31 March 2023 and of its incoming resources and application of ￿SoUrces, including its income and expenditure, for Ihe year then ended: have b&n properfy prepared in accordance with Unrled Kingdom Generally Accepted Accounts'ng Practice: have been prepared in accordance wilh the requirements of the Companies Act 2006. Basis for opinion We conducted our audtt in accordance with International Standards on Audiiing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further descJibed in the auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charty in accordance with the ethical requirements that are relevant to our audit of the financial stalements in the UK. including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe ihat the audit evidence we have oblained is sufficient and appropriate to provide a basts for our opinion. Concluslons relating to golng concem In auditing the financial statements. we have concluded thal Ihe trustees, use of Ihe going cortern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfonned, we have not identified any material uncertainties relaling lo events or conditions thal. irtdividually or wllectively. may cast srgnrficant doubt on the chaiity's abilty to continue as a going ccncem for a period of at least tsvelve rnonths from when Ihe financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are descnbed in the relevant sedions of this report. Page 11 Development Trusts (Nl) Limited Company Limited by Guarantee Independent Auditorfs Report to the Members of Development Trusts (Nl) Lim ited (conrlnu8dJ Year ended 31 March 2023 Other information The other infomption comprises the infomation included in the annual report. other than the financial statements and our auditorfs report thereon. The trustees are resp0Tr5ble for the other information. Our opinion on the financial statements does not cover Ihe other infomiation and. except to the extent otherwise explKitly stated in our report. we do not express any fonn of assurance conclusion thereon. In connection wilh our audit of the fsnancial statements. our ￿pOnSIbl[ty is to read the other information and. in doing so. consider whether the other infumation is materially inconsistent with the financial statemenls or our knowledge obtained in the audit or othepwise appears to be materialty misstated. If we identify such malerial inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a malerial misstatement of the other infomation. If, based on the work we have performed. we conclude thal there is a material misslaternent of this other iDfcKmation, we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters pyescrfbed by the Companies Act 21X)6 In our opinion. based on the th undertaken in the course of the audit: the infomation given in the tfUStees' report for the financial year for which the financial statements are prepared is wnsistent with the financial staternents; and the trustees, report has been prepared in accordance with applicable legal requirement5. Matters on whiGh we are required to report by exception In Ihe light of the knowledge and undet51anding of the charity and ts environment obtained in Ihe course of the audit. we have not identifred material rnisstatements in Ihe trustees, report. We have nothing to report in respect of the following matters in relalion to which the Companies Acl 2006 requires us to report to you rf, in our opinion: adequate accounting records have not been kept. or returns adequate for our audit have not been received from braThches not visited by us: or the financial statements are not in agreement with the accounting records and returns: or certain disclosures of tnjstees. remuneralion specified by law are not made: or we have noi r￿1Ved all the infomiation and explanatkons we require for our audit: or the trustees were not enlitled to prepare the flnancial statements in accordance with the small companies regwne and take advantage of ihe small companies, exemptions in preparing the directors. report and from the tequirement to prepare a strategic repo Page 12 Development Trusts (Nl) Limited Company Limited by Guarantee Independent Auditorfs Report to the Members of Development Trusts (Nl) Limited (conllnueo) Year ended 31 March 2023 Responsibilities of trustees As explained more fulty in the trustees. responsibilities statement. the trustees {who are also the dwectors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they gNe a true and fair view, and for such intemal ¢￿trol as the trustees detemiine is necessary to enable the preparation of financial stalernents thal are free from mateftal misstatement, whether due to fraud or error. In p￿parIng Ihe financial statements. the Irustees a￿ responsible for assessing the charily's ability to continue as a going concern. disclosing, as applicable. matters related to going concern and using the going concern basis of accountiry unless the trustees either intend to liquidate the charity or to cease operations. or have no fealistic altemative but to do so. Auditorfs responsibilities for Ihe audit of the financial statements Our objectives a￿ to obtain ￿aSonable assuran￿ aboui whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an audilorfs report that includes our opini¢Jn. Reasonable assurance is a high level of assuran￿. bui is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstaternent when it exists. IAisstalements can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected to influence the economi decisions of users taken on the basi5 of these financial statements. Irregularities. including Iraud, are instances of non-ccrfnpliance with kws and regulations. We design procedures in line with our responsibililies, outlined above, to detect material misstatements in respect of irregularities. including fraud. The extent to which our procedures are Gapable of detecting irregularities. including fraud is detailed below: As part of the audit process we obtained an understanding of the legal and regulatory framewoTk applicable to the entity. being FR102. Ccrtnpanies Act 2006 the UK taxation regime and compliance with regulations in relation to the Coronavinjs Jobs Retention Scheme and the Coronavirns Business Interruption Scheme. In addition, we assessed the risks of material fraud through enquires with management and those charged with corporate governance and anatytical prO￿dureS were used to assess any unusual or unexpected relationships. As wilh all Organisat￿n of this srze. there remains an inherent diffufty in the detection of irregularitie5. A further description of our responsibilities for the audit of financial stslements is located on Ihe FRC'S website at wNvw.fr¢.org.uklaudiiorsresponsibilities As part of an audit in aGcordanGe with ISAS (UK}. we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risk5 of material misstatement of the financial sL*ements. whether due to fr8ud or error. design and perfonn audit procedures responsive lo those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a rnaterial misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion. forgery. intentional omissions. misrepresentations, or the override of intemal Control. Obtain an understanding of internal control relevant to the audit in order to desb3n audit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opinvjn on the effectiveness of the internal contiol. **Page 13** ## **Development Trusts (NI) Limited** ## **Company Limited by Guarantee** **Independent Auditor's Report to the Members of Development Trusts (NI) Limited** _**(cont1nuedJ**_ ## **Year ended 31 March 2023** - _**Evaluate**_ **the appropriateness** _**of accounting**_ **policies used** _**and the**_ **reasonableness** _**of**_ **accounting estimates and related disclosures made by the trustees.** - **Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern.** - **Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.** **We communicate with those charged with governance· regarding, among other· matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.** ## **Use of our report** **This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity'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 responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.** **Elaine Mulholland (Senior Statutory Auditor)** **216/218 Holywood Road Belfast BT41PD** **For and on behalf of Johnston Graham Limited Chartered accountants & statutory auditor** **9 October 2023** Page 16 Development Trusts (Nl) Limited Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2023 General Informatlon The charity is a public benefrt entty and a private company limited by guarantee. registered in Northern Ireland and a registered charity in Northem Iretand. The address of the registered office is Cathedral Quarter Managed WO￿ Space, 109-113 Royal Avenue, Belfast, 8T11FF. Staternent of compliance These financial statemenls have been prepared in compliance with FRS 102. The Financial Reporting Standard applicable in the UK and the Republic of Ireland., the Ststement of Recomrnended Practice applicable to charities preparing their accounts in accordance wtlh the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102> {Charities SQRP (FRS 102)) and the Companies Act 2006. Accountlng polici•s Bas15 of preparation The finanaal statement5 have been prepared on the historical cost basis. as rrlodified by the valuation of certain financial assets and liabilities and investrnent properties measured at fair walue through income or expenditure. The financial statements are prepared in sterling. which is the functional Cur￿ ncy of the entty. Golng concern There are no material uncertainties about the charity's abllily to continue. Judgements and key sources of estlrnation uncertainty The preparatIC￿ of Ihe financial statements requires managemenl to make judgements, eslimales and assumptions that affect the *nounts reported. These estimates and judgements are continually reviewed and are based on experience and other factor5, including expectations of future events that are believed to be reasonable under the circumsiances. Fund accounting Unrestrtcted funds are available for use at the discretion of the trustees to further any of the charitws purposes. Designated funds a￿ unrestricted funds earmarked by the trustees for particular futu￿ prqeci or ommilment. Resiricted fund5 are subjecied to restriclion5 on their expendrture dedared by the donor or through the terms of an appeal. and fall into one of two sub-¢lasses'. reslricted income funds or endowment funds. Page 17 Development Trusts (Nl) Limited Company Limited by Guarantee Notes to the Financial Statements (¢ondnued) Year ended 31 March 2023 Accounting policies fcontlnuedj Incoming resources All incoming resources are included in the Statement of financial activities when entttlement has passed to the charity.. it is probable that the economic benefrts associaled with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income- incorne frorn donations or grants is recognised when there is evidence of entitlement to the gift. receipt is probable and its amount can be rneasured reliab￿. legacy income is recognised when receipt is probable and entitlement is established. income from donated goods is measured at the fair value of the goods unless this is impraclical to measure reliably, in which case the value is derived from the ¢ost to the donor or Ihe estimated resale value. Donated facilities and services are iecognised in the accounls when received rf Ihe value can be reliably measured. No amounts are included for the contribulion of general volunteers. income from contracts for the supply of services is recognised wtth the delivery of the contracted service. This is classffjied as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent. in which case rt may be regarded as festricted. Resources expended Expenditure is recognised on an acctuals basis as a liabilty is incurred. Expenditure includes any VAT which cannot be fully recovered. and is dassified under headings of the statement of financial activities to which it relates.. expenditure on raising funds includes the costs of all fundraising activities. events, rK)n-charitable trading activities. and the sale of donated goods. expenditure on charitable activities includes all costs incurred by a charty in undertaking activities that further its charitable aims for the ber¢efil of its benefriaries, including those support costs and costs relating to the govemance of the charity apportioned to charitable activilies. olher expenditure includes all expenditure Ihat 15 neither related lo raising funds for the charity nor part of its expenditure on charltable aclivities. All costs are allocated to expenditure categories reflecling the use of Ihe resource. Direct costs attributable to a single activity are allocated directly to thal activity. Shared costs are apportioned belween the aclivtties they contribute to on a reasonable. juslifiable and consistent basis. Tangible assets All fixed assets are initially recorded at cost. Page 18 Development Trusts (Nl) Limited Company Limited by Guarantee Notes to the Financial Statements (￿ntInu*d) Year ended 31 March 2023 Actounting policies (conilnued) Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset. less tls residual value. over the useful economic lrfe of that asset as follows- Fixtures, fittings and equipment 25èA. straight line Impalrment of fixed assets A review for indicators of impainnent is carried oul at each reporting date. with the recoverable arnount being estimated where such indicators exist. Where the caryillg value exceeds the recoverable 8mount. the asset is impaired arxordingly. Prior impaimients are also reviewed for possible reversal at eaGh reporting date. For the purposes of irnpairment testing, when it is not P055ible to estimate the recoverable arnount of an individual asset, an estirnate is made of the recoverable amounl of the cash-generating unit lo which the asset belongs. The cash4Jeneraling unit is the smallest idenlifiable group of assets that indudes the asset and generates cash Inflows that largely independent of the cash inflows from other assets or groups of assets. For impaimient testing of goo¢)￿111. the gt)odwill acquired in a business combinalion is, from the acquisition date, allocated to each of the cash-generating units Ihat are expected to benefit from the synergies of the combination. irrespective of whether other assets or liabilities of the charity are assigned to those units. Flnancial Instruments A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the iftstNment. Basi¢ financial instruments are initially recognised at the amount receivable or payable induding any related transaction costs. Current assets and current liabilitie5 are subsequenlly measured at the cash or other consideration expected to be paid or re￿)Ved and not dtscounted. Debt instnjments are subsequently measured at amortised cost. Where invesiments in shares are publicly traded or their fair value can otherwise be measured reliably. the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All olher such investments are subsequently measured at cost less impaimienL Other financial instruments, including derivatives. are initially recognised at fair value. vnless payment for an asset is deferred beyond nomial business terms or financed at a rate of interest that is not a market rate, in which case the asset 15 measured at the present value of the future payrnenls discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities. with the exception of hedging instruments in a designaied hedging relalionship.