Our Ref: 4415/CAD/NF Date: 29[th] November 2023
## **Private & confidential**
Board of Management Participation & Practice of Rights Project Ltd Community House City Link Business Park 6a Albert Street Belfast BT12 4HQ
Dear Sirs/Madams,
## **REPORT TO THOSE CHARGED WITH GOVERNANCE**
The audit of the financial statements of Participation & Practice of Rights Project Ltd (‘PPR’) for the year ended 31[st] March 2023 is complete. In line with International Standards for Auditing, we are writing to advise you of audit conclusions, significant matters arising during the course of the audit and other matters which are significant to the financial reporting process.
As auditors, we are responsible for forming and expressing an opinion on the financial statements that have been prepared with the oversight of those charged with governance. As such, our tests are designed to assist us in forming our opinion and should not be relied upon to disclose all errors, irregularities or control deficiencies that exist. The audit does not relieve management or those charged with governance of their responsibilities.
## **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 the Generally Accepted Accounting Principles (FRS 102). 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 frauds, 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.
## **Related parties**
No significant matters arose during the audit in connection with related parties.
_This report has been prepared for the sole use of those charged with governance of Participation & Practice of Rights Project Ltd must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report._
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## **Ethical Considerations**
We comply with ethical standards applicable to auditors, specifically the ‘Revised Ethical Standard 2019’ published by the Financial Reporting Council. This standard identifies potential threats to auditor independence where partners and staff in senior positions have a long association or extensive involvement with an audit client. In accordance with this standard, after a period of ten years we must formally consider as to whether it is probable that an objective, reasonable and informed third party would conclude the integrity, objectivity or independence of the firm or covered persons are compromised.
Conor Dolan has acted as audit engagement partner since 2007 and therefore we have formally considered if he should be rotated. In this case we have assessed potential threats to our independence and have concluded that, in our opinion, no such threats have, would or could materialise due to the nature of our engagement and the quality control procedures we have implemented within our firm. We therefore deem partner rotation not necessary. We are required to bring any potential threats to auditor independence, and our response to these threats, to your attention.
## **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 subsequent events.
## **Internal control**
During the course of the audit we identified a number of recommendations in relation to improving the internal control framework of the organisation. In summary, 0 priority 1,3 priority 2 and 2 priority 3 observations were noted. These are set out in detail at Appendix 1.
We have graded our management report observations as follows:
|Priority 1|An issue which requires urgent management decision and action without which there
is a substantial risk to the achievement of key business/system objectives, or to the
reputation of the organisation.|
|---|---|
|Priority 2|An issue which requires prompt attention, as failure to do so could lead to a more
serious risk exposure.|
|Priority 3|Improvements that will enhance the existing control framework and/or represent best
practice.|
## **Acknowledgement**
We would like to take this opportunity to acknowledge the courtesy and assistance extended to us by Participation & Practice of Rights Project Ltd personnel during the course of our audit.
Yours faithfully,
## Finegan Gibson Ltd
## _Chartered Accountants & Registered Auditors_
_This report has been prepared for the sole use of those charged with governance of Participation & Practice of Rights Project Ltd must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report._
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_**APPENDIX 1: Schedule of adjustments**_
## **Adjusted audit differences:**
|**No.**|**Description**|**Description**|**Adjusting journals**|**Adjusting journals**|**Adjusting journals**|**Adjusted SOFA**
**effect**|**Adjusted B/S**
**effect**|
|---|---|---|---|---|---|---|---|
||||**Dr**||**Cr**|**£**|**£**|
|**See Appendix 1 for audit adjustments**||||||||
|**Unadjusted audit differences:**||||||||
|**No.**|**Description**|**Unadjusted journals**||||**Unadjusted**
**SOFA effect**|**Unadjusted**
**B/S effect**|
|||**Dr**||**Cr**||**£**|**£**|
|||||||||
|||||||||
|**_NO UNADJUSTED AUDIT DIFFERENCES_**||||||||
|||||||||
|**TOTAL AUDITUNADJUSTMENTS**||||||**-**|**-**|
_This report has been prepared for the sole use of those charged with governance of Participation & Practice of Rights Project Ltd and must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report._
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_**APPENDIX 1: Management Letter**_
|**#**|**Issue**|**Risk(s)**|**Grade**|**Recommendation**|**Management Response**|**Responsibility & Target**
**Date**|
|---|---|---|---|---|---|---|
|**_Fixed assets_**|||||||
|**1. **|It was noted during testing that
fixed asset additions were not
posted to the fixed asset nominal
codes on the Sage Accounting
system.|Inaccurate recording of asset
purchases may lead to
misstatement of fixed asset
balances.
Complete and accurate
management information on
fixed assets may not be readily
available to inform decision
making.|3|When an asset is purchased
and recorded on the fixed
asset register, it should also
be posted to the correct
fixed asset nominal code on
the balance sheet within
the Sage accounting system
and depreciated in line with
current policies.|
||
|**2. **|Depreciation of assets is not
recorded on the fixed asset
register, and it is not posted to the
accounting system on a monthly
basis.|
The value of fixed assets may be
misstated in the charity’s
accounts.
The net book value of fixed
assets may not reflect their
actual value in use.|3|Depreciation should be
calculated and posted for all
assets on a monthly basis in
line with the company’s
policy, to ensure asset
values in the financial
statements reflect their net
book value.|||
|**_Expenditure and creditors_**|||||||
|**3. **|During testing, we identified cut
off issues whereby invoices
relating to the year ended 31
March 2023 were not recorded in
the 31 March 2023 financial year.|The charity’s liabilities and
expenditure for the period
may be understated.|2|We recommend that
invoices received around
the year end date are
reviewed carefully to
ensure that all liabilities are
included in the correct
period.|||
_This report has been prepared for the sole use of those charged with governance of Participation & Practice of Rights Project Ltd must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report._
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_**APPENDIX 1: Management Letter**_
|**#**|**Issue**|**Risk(s)**|**Grade**|**Recommendation**|**Management Response**|**Responsibility & Target**
**Date**|
|---|---|---|---|---|---|---|
|||||Any relevant expenditure
not invoiced until after the
year end should be included
as an accrual.|||
|**_Payroll_**|||||||
|**4.**|During testing it was noted that
payroll payments were incorrectly
coded on sage and not reflected in
the net pay control account.|
Misstatement of liabilities|2|Payroll journals should be
posted to control accounts
on a monthly basis, so the
charity’s payroll liabilities
are evident. These control
accounts should be brought
to nil when the liabilities
are paid and any remaining
balances investigated.|||
|**_Income and Debtors_**|||||||
|**5.**|During testing it was noted, that
there were debtors found through
post year end testing that were
not included on the debtors ledger
at year end.|
The charity’s debtors and
income for the period may be
understated|2|We recommend that sales
invoices are reviewed
carefully to ensure that all
debtors are included in the
correct period.
Any relevant income
relating to the 31 March
2023 year should be
included as a debtor.|||
_This report has been prepared for the sole use of those charged with governance of Participation & Practice of Rights Project Ltd must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report._
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_**APPENDIX 1: Management Letter**_
|**#**|**Issue**|**Risk(s)**|**Grade**|**Recommendation**|**Management Response**|**Responsibility & Target**
**Date**|
|---|---|---|---|---|---|---|
|**_Bank_**|||||||
|**6.**|During testing of the bank
accounts, it was noted free cash
reserves are not held in a high
interest deposit account and
potentially losing out on interest
income.|There is a risk the
organisation could be losing
out on potential interest
income.|3|The organisation should
review the use of all the
bank accounts and consider
opening a high interest
deposit account to allow
free cash reverses to earn
interest.|||
> _This report has been prepared for the sole use of those charged with governance of Participation & Practice of Rights Project Ltd must not be shown to third parties without our prior consent. No responsibility is assumed by Finegan Gibson Ltd towards any third party acting or refraining from action as a result of this report._
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