Our Ref: 4415/CAD/NF Date: 2[nd] December 2024 ## **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 2024 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._ 1 ## **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, 5 priority 2 and 0 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
bestpractice.| ## **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._ 2 _**APPENDIX 1: Schedule of adjustments**_ ## **Adjusted audit differences:** |**No.**|**Description**|**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 journals**|**Unadjusted SOFA**
**effect**|**Unadjusted B/S**
**effect**| |---|---|---|---|---|---| |||**Dr**|**Cr**|**£**|**£**| ||||||| ||||||| |**_NO UNADJUSTED AUDIT DIFFERENCES_**|||||| ||||||| |**TOTAL AUDIT UNADJUSTMENTS**||||**-**|**-**| _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._ 3 _**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.|2|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.|2|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
.||| _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._ 4 _**APPENDIX 1: Management Letter**_ |**#**|**Issue**|**Risk(s)**|**Grade**|**Recommendation**|**Management**
**Response**|**Responsibility & Target**
**Date**| |---|---|---|---|---|---|---| |**Expenditure and creditors**||||||| |**3.**|During testing, it was noted
that accruals for the prior year
were not reversed and
accruals for the year end
March 2024 were not posted
in the year.|The charity’s liabilities and
expenditure for the period may
be understated.|2|We recommend that Sage
postings for accruals are
reviewed to ensure they are
reversed accurately and
appropriately.||| |**Income**|**and Debtors**|||||| |**4.**|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 2024 year
should be included as a
debtor.||| |**5.**|During testing of the debtors
control account it was noted
that the balance contains old
debtors that already received
but not allocated against the
sales invoice.|There is an increased risk of
discrepancies in debtor accounts
occurring.
Income and debtor balances
may be overstated.|2|Debtor control account
reconciliations should be
performed on a monthly
basis and reviewed by
management.||| _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._ 5 _**APPENDIX 1: Management Letter**_ _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._ 6