NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 3.5 The Certificate and Report of the Comptroller and Auditor General to the Northern Ireland Assembly Opinion on financial statements I certify that I have audited the financial statements of the National Museums Northern Ireland for the year ended 31 March 2024 under the Museums and Galleries (Northern Ireland) Order 1998. The financial statements comprise: the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement. and the related notes including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting standards including the Charities SORP (FRS 102) "The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). I have also audited the information in the Remuneration and Staff Report that is described in that report as having been audited. In my opinion the financial statements: give a true and fair view of the state of National Museums Northern Ireland's affairs as at 31 March 2024 and of its total incoming reSoUrS and expenditure of resources for the year then ended. have been properly prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" and have been properly prepared in accordance with the Museums and Galleries (Northern Ireland) Order 1998 and Department for Communities directions issued thereunder. Opinion on regularity In my opinion, in all material respects the expenditure and income recorded in the financial statements have been applied to the purposes intended by the Assembly and the financial transactions recorded in the financial statements confomi to the authorities which govern them. Basis for opinions I conducted my audit in accordan with International Stsndards on Auditing (ISAS) (UK), applicable law and Practice Note 10 'Audit of Financial Statements and Regularity of Public Sector Bodies in the United Kingdom,. My responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of this certificate. My staff and l are independent of National Museums Northem Ireland in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. including the Financial Reporting Council's Ethical Standard, and have fulfilled our other ethical responsibilities in accordance with these requirements. I believe that the audit eviden obtained is sufficient and appropriate to provide a basis for my opinions. Conclusions relating to going concern In auditing the financial statements, I have concluded that National Museums Northem Ireland's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work I have performed, I have not disclosed in the financial statements any identified any material uncertainties that relating to events or conditions that. individually or collectively, may 59
NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 cast significant doubt about on the National Museums Northem Ireland'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. The going concern basis of accounting for National Museums Northern Ireland is adopted in consideration of the requirements set out in the Govemment Reporting Manual, which require entities to adopt the going concern basis of accounting in the preparation of the financial statements where it anticipated that the services which they provide will continue into the future. My responsibilities and the responsibilities of the Trustees and the Chief Executive with respect to going concern are described in the relevant sections of this report. Other Information The other information comprises the infonmation included in the Trustees. annual report other than the financial statements, the parts of the Accountability Report described in that report as having been audited. and my audit certificate and report. The Trustees and the Chief Executive are responsible for the other information included in the annual report. My opinion on the financial statements does not cover the other information and except to the extent otherwise explicitly stated in my report. I do not express any fomi of assuran conclusion thereon. My responsibility is to read the other infomiation and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If l identify such material inconsistencies or apparent material misstatements. l am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed. I conclude that there is a material misstatement of this other information. l am required to report that fact. I have nothing to report in this regard. Opinion on other matters In my opinion, based on the work undertaken in the course of the audit: the parts of the Accountsbility Report to be audited have been properly prepared in accordance with Department for Communities directions made under the Museums and Galleries (Northern Ireland) Order 1998. and the information given in the Perfonan and Accountsbility Reports for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which I report by exception In the light of the knowledge and understanding of the National Museums Northern Ireland and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance Report and Accountability Report. I have nothing to report in respect of the following matters which I report to you if, in my opinion.. adequate accounting records have not been kept; or the financial statements and the parts of the Accountability Report to be audited are not in agreement with the accounting records: or certain disclosures of remuneration specified by the Govemment Financial Report Manual are not made. or I have not received all of the information and explanations I require for my audit; or 60
NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 the Governance Statement does not reflect compliance with the Department of Finance's guidance. Responsibilities of the Trustees and Accounting Officer for the financial statements As explained more fully in the Statement of the Trustees and Chief Executive's Responsibilities, the Trustees and the Chief Executive as Accounting Officer are responsible for: the preparation of the financial statements in accordan with the applicable financial reporting framework and for being satisfied that they give a true and fair view. such internal controls as the Trustees and Accounting Officer determines is necessary to enable the preparation of financial ststements that are free from material misstatement, whether due to fraud of error" assessing the National Museums Northern Ireland's ability to continue as a going concern. disclosing. as applicable. matters related to going conrn and using the going concern basis of accounting unless the Trustees and Accounting Officer anticipates that the services provided by National Museums Northern Ireland will not continue to be provided in the future. Auditor's responsibilities for the audit of the financial statements My responsibility is to examine, certify and report on the financial statements in accordance with the Museum and Galleries (Northem Ireland) Order 1998. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue a certificate that includes my opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISA'S (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 Influen the economic decisions of users taken on the basis of these financial statements. I design prOdureS in line with my responsibilities. outlined above. to detect material misstatements in respect of non-complian with laws and regulation. including fraud. My procedures included: obtaining an understanding of the legal and regulatory framework applicable to the National Museums Northern Ireland through discussion with management and application of extensive public sector accountsbility knowledge. The key laws and regulations I considered included Museum and Galleries (Northern Ireland) Order 1998. making enquires of management and those charged with govemance on National Museums Northern Ireland's compliance with laws and regulations" making enquiries of internal audit, management and those charged with governance as to susceptibility to irregularity and fraud. their assessment of the risk of material misstatement due to fraud and irregularity, and their knowledge of actual, suspected and alleged fraud and irregularity. 61
NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 completing risk assessment procedures to assess the susceptibility of National Museums Northem Ireland's financial statements to material misstatement, including how fraud might occur. This included, but was not limited to, an engagement director led engagement team discussion on fraud to identify particular areas. transaction streams and business practices that may be SUSptib1e to material misstatement due to fraud. As part of this discussion. l identified potential for fraud in the following areas: management override of controls through the posting of unusual journals, revenue recognition, and the extent of management bias within key accounting estimates; engagement director oversight to ensure the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with the applicable legal and regulatory framework throughout the audit; documenting and evaluating the design and implementation of internal controls in place to mitigate risk of material misstatement due to fraud and non-compliance with laws and regulations: designing audit procedures to address specific laws and regulations which the engagement team considered to have a direct material effect on the financial statements in terms of misstatement and irregularity, including fraud. These audit procedures included. but were not limited to. reading board and committee minutes, and agreeing financial statement disdosures to underlying supporting documentation and approvals as appropriate" and addressing the risk of fraud as a result of management override of controls by: performing analytical procedures to identify unusual or unexpected relationships or movements" testing journal entries to identify potential anomalies, and inappropriate or unauthorised adjustments; assessing whether judgements and other assumptions made in determining accounting estimates were indicative of potential bias. and investigating significant or unusual transactions made outside of the normal course of business; and A further description of my responsibilities for the audit of the financial ststements is located on the Financial Reporting Council's website www.frc.or .uklauditorsres onsibilities. This description forms part of my certrficate. In addition. l am required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by the Assembly and the financial transactions recorded in the financial statements conform to the authorities which govern them. 62
NATIONAL MUSEUMS NI ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 Report I have no obseNations to make on these financial statements. Dorinnia Carville Comptroller and Auditor General Northern Ireland Audit Office 106 University Street BELFAST BT7 1EU 13 November 2024 63