Sion Mills Buildings Preservation Trust (A company limited by guarantee) Independent auditors, report to the members of Sion Mills Buildings Preservation Trust for the year ended 30 September 2023 Opinion We have audited the financial statements of Sion Mills Buildings Preservation Trust for the year ended 30 September 2023 which Comprise the stalement of financial activities. the balance sheet and notes to th¢ financial slatements. including a summary of significant accounling policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounling Standards (United Kingdom Generally Accepted Accounting Practice) including 'Accounting and Reporting by Charities.. Slatement of Recommended Practice, (Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,). IM our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 30 September 2023 and of the incoming resources and application of resources, including its income and expenditure, lor the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including 'Accounting and Reporting by Charilies.. Statement of Recommended Practice, (Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland')- have been prepared in accordanc¢ with the requirem¢nts of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Slandards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Audilovs responsibilities for the audit of the financial statements section of our report. We are independent of the charTtable company in accordance with the ethical requirements that are relevant to our audit of Ihe financial statements in the UK, including the FRC'S Ethical Standai'd, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evtdence we have obtained is sulTicient and appropriate to provide a basis for OUT opinion. Material uncertainty relating to going concern We di'aw attention to notes 16, 17 and 18 in the financial statements, which set out the disclosures regarding the revaluation of the workspace units. the potential shortfall on the Stables and the liability for legal fees incurred on the settlement of the case relating to the workspace units. These matters indicate that material uncertainty exists thal casts significant doubt on the CoMpanS ability to continue as a going concern. Our oplnion is not modified in respect of these matters. Other information The other infonnation comprises the infonnation included in the annual Teport, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other inforn)ation. Our opinion on the financial statements does not cover the other inforn]ation and, except to ihe extent othenvise explicitly stated in our report, we do not express any forn] of assurance conclusion 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 inforniation is materially incon51slent with the financial slatements or our knowledge obiained in the audit or otherwise appears to be matei'ially 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 slatements or a material misstatement of the other information. If, based on the work we have perfornied, we conclude ihat there is a material misstatement of this other inforniation, we are required to report that fact. We have nothing to report in this regard. Page 5
Sion Mills Buildings Preservation Trust (A eompany limited by guarantee) Independent auditors, report to the members of Sion Mills Buildings Preservation Trust for the year ended 30 September 2023 Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. th¢ infoiination given in the directors, r¢port for th¢ financial year for which the financial statements are prepared is consistent with the financial statements. and the trustee's report ha5 been prepared accordance with applicable legal requirements. Martters on which we are required to report by exception In the light of the knowledge and underslanding of the charitabl¢ company and its environment obtained in the course of the audit, w¢ have not identified material misstatemenls in the truste¢s' report. We have nothing to report in respect of th¢ following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:_ adequate accounting recoi'ds have not been kept, or returns adequate for our audRt hav¢ not been received from branches not visited by us. or the financial statements are not in agreement with ihe accounting records and returns" or certain disclosures of trustees, remuneration specified by law are not made- or we have not received all the inforn]ation and explanalions we require for our audit. or the trustees were not entitled to prepare the financial statemenls in accordance with the small compani¢s regime and take advantage of the small companies, exemption from the r¢quirement to prepare a strategic report. Responsibilities of the trustees As explained more fully in the 51alement of trustees responsibilities (set out on page 3), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees detennine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial stal¢ments. th¢ trustees are responsible for assessing the charitabl¢ compaT)y'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 tru51ees either intend to liquidate the charitabl¢ company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of Ihe financial statements 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 em>r, and to issue an auditor's report that include5 our opinion. Reasonable assurance is high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always delect a material misslatement when it exists. Misstatements can arise fi'om fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influenc¢ the economic d¢cisions of us¢r5 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 responsibilitie5, Outlined above, to detect malerial misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irr¢gularities, including fraud 15 detailed below: Page 6
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Independent auditors, report to the members of Sion Mills Buildings Preservation Trust for the year ended 30 September 2023 In identifying and assessing risk5 of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered ihe following: - the nature of the industry and sector. control environment and business perforniance. results of our enquiries of managemenl about their own identification and assessment of the risks of irregularities. any matters we identified having obtained from management whether they were aware of any instances of non- compliance and whether they have knowledge of any actual, suspe¢l¢d or alleged frdud. and the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a i'esult of these procedur¢s, we identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement. In common with all audits under ISAS (UK), we are also requii'ed to perform specific procedures to respond lo the risk of management OVeIde. We also obtained an understanding of the legal and regulatory framework that the charitable company operates in, focusing on provisions of those laws and regulations ihat had a direct effect on the detemiination of material amount5 and disclosures in the financial statements. In addition, we considered provisions of other laws and regulations ihat do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty. These included data protection, employment, environmental and health and safety regulations. As a result of perfonning the above, we identified the potenlial for management Oveide of the controls as a key audit matter related to the potential risk of fraud. Our procedures to respond lo the risk5 identified included the following.. reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulation5 described as having a direct effect on the financial stat¢ments' enquiring of management con¢¢i-ning actual and potential litigation and claims. performing analytical procedures to identify any unusual or unexp¢cted relationships that may indicate risks of material misstatement due to fraud. reading minutes of meetings of those charged with governance. and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing wheiher the judgements made in making accounting estimates are indicative of a potential bias. and evaluating the business rationale of any significant Iransactions that are unusual or outside the nornial course of business. We also communicated relevant identified laws and regulations and potential fraud risk5 to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. A further description of our responsibilities for the audit of th¢ financial statements is located on the Financial Reporting Council's website at V.frc.0rg.Uk. This description forn)s part of our audilor's report. We have undertaken the audit in accordance with the requirements of Auditing Practices Board's {APB's) Ethical Standards for Auditors. including APB Ethical Standards - Provisions Available for Small Entities as stated below: In common with many other businesses of the charitable company size and nature we as auditors assist the charitable company with the preparation of the financial statements. and We provide tax advice to the charitabl¢ company as and when required, and where necessary) will represent the charitable company at tax tribunals. Page 7
Sion Mills Buildings Preservation Trust (A company limited by guarantee) Independent auditors, report to the members of Sion Mills Buildings Preservation Trust for the year ended 30 September 2023 Purpose of our audit work and to whom we owe our responsibilities This report is made solely to Ihe charitable company's members, as a body, in accordance with the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable compangs members those inatters we are requii'ed to state to them in an audiloV5 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 hav¢ formed. Mrs Kate MeFarland (senior statutory auditor) For and on behalf of McFarland Arnold & Co Chartered Accountants & Slatutory Auditors Dated: McFarland Arnold & Co Chartered Accountants 8 Main Street Newtoivnstewart Omagh BT78 4AA Page 8