LIVING RIVERS TRUST Page 9 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LIVING RIVERS TRUST YEAR ENDED 31 MARCH 2023 Opillion We have audifrd the financial statements of Living Rivers Trust for the year ended 31 March 2023 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 Ac¢ounting 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 3 l March 2023. and of its incoming resources and expenditure of resources, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepfrd Accounting Practice" and have been prepared in accordance with the quIreMents of the Charities Act (Northem 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 slalements 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. Conclusion5 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 prepardtion 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 r¢speGt to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other infrirtnation. The other information comprises the infornlation other than the Statement of Financial Activities, Balance SheeL Statement of Cash Flows and 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 infonnation and, in doing so, consider whether the other inforniation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Ef we identify such material inconsistencies or apparent material misstatements. we are required to detemiine whether there is a material misstatement in the financial statements or a material misstatement of the other infornlation. If based on the work we have performed, we conclude that there is a material misstatement of this other Ènfonnation, we are required to report that fact. We have nothing to report in this regard.
Page 10 LIVING RIVERS TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LIVING RIVERS TRUST (continued) YEAR ENDED 31 MARCH 2023 Matters on Ivhich 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 ststements 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 fijlly in the trustees, responsibilities statement set out on page 7. the trustees are responsible for the preparation of fanCIal statements which give a true and fair view, and for such internal control &8 the trustees detennine is necessary to enable the prepardtion of fmancial statements that are free from material misstatement, whether due to fraud or error. tn 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 ce&se operations, or have no realistic altemative but to do so. Auditor's responsibilitie5 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 ACL Our objectives are to obtain reasonable &ssurance about whether the financial statements as a whole are free from material misstatemenL whether due to fraud or error, and to issue an auditor's report that ineludes 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 detsiled below.. Extent to which the audit was considered capable of detecting irregularities, including frdud We identify and &ssess the risks of material misstatement of the financial statements, whether due to frdud or error, and then design and perform the audit procedures responsive to those risks, including obtaining audit evidence that 15 SUtTicient 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 nonw¢ompliance with laws and regulations, we considered the following: Audit response to risks identified= the nature of the industy and sector, control environment and charity's financial results and position. current covtD-19 environment results of our enquiries of management about their own identifIcation and assessment of the risks of irregularities-
LIVING RIVERS TRUST Page 11 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LIVING RIVERS TRUST (eontinued) YEAR ENDED 31 MARCH 2023 Auditor's responsibilities for the audit of the financial statements (conlinued) 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 respondtng 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 regarding how and where fraud might occur in the financial statements and potential indicators of fraud. As a result of these procedures, we considered that the particular areas in the financial statements that were susceptible to misstatement were related to management bias in accounttng esttmates and judgements. recognition, Classification and completeness of income. In common with all audits under ISAS (UK), we are also required to perfomi 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 detemination of material amounts and disclosures in the fanCIal statements. The key laws and regulations we considered in this context included Charity legislation applicable to Northem Ireland, Charity's goveming documenL 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 operafr or to avoid a material penalty. Our procedures to respond to risks identified include the ftillowing: identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud. reviewing the fanCIal statements disclosures and testing to supporting documentstion to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements. enquiring of management and extemal legal advisors concerning actual and pofrntial litigation and claims" perforniing 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 govemance. 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 oveIde of controls, testing the appropriateness of joumal entries and other adjustments including those relating to revenue recognition" assessing whether the judgements made in making accounting estimates are indicative of potential bia5- and evaluating the rationale of any significant transactions that are large, unusual or outside the nornial course of the charity's activities
Page 12 LIVING RIVERS TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LIVING RIVERS TRUST (continued) YEAR ENDED 31 MARCH 2023 Auditor s responsibilities for the audit of the financial statements (continued) We also communicated relevant identified laws and regulations and potential fraud risks to all engagement teams membeis and remained alert to any tndications of fraud or Tron-compliance with laws and regulations throughout the audit. Because of the inherent limitations of an audiL there is a risk that we wÈll not detect all trregularities. including those leading to a material misstatement in the fancIal statements or non-compliance with regulation. This risk increases the more that Compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to be¢ome aware of instances of non-compliance. The risk is also greater regarding IegUlaritieS occurring due to fraud rather than error, as fraud involves intentional con¢eatmenL forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expecfrd to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAS (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: identify and assess the risks of material misstatement of the financial ststements, whether due to fraud or error, design and perforni audit procedures responsive to those risks. and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, &8 fraud may involve collusion, forgery, intentional omission. misrepresentations. or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the ¢ir¢umstances, but not for the purpose of expressing an opinion on the effectiveness of the charity's intemal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriatsness 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 uncertatnty exists. w¢ 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 date of our auditor's report. However, tUre events or conditions may cause the charity to cease to continue as a going ¢on¢em. Evaluate the overall presentation, struthre and content of the financial statements, including the disclosures. and whether the finan¢ial 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.
Page 13 LIVING RIVERS TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF LIVING RIVERS TRUST (¢ontinued) YEAR ENDED 31 MARCH 2023 Use of our report This report is Tnade solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015. Our audit work has been undertaken so that we might state to the Charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the lIest extsnt perniitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees &$ a body. for our audit work, for this repor¢ or for the opinions we have fonned. JACKSON ANDREWS Chartered Accountants & Registered Auditors 6 Mandeville Mews Portadown County Armagh BT62 3NS Date: