RAINBOW CHILD AND FAMILY CENTRE LTD Company limited by guarantee Independent auditor's report to Ihe directors ofRAtNBOW CHILD AND FAMILY CENTRE LTD Opinion We have audited the financial statements of RAfNBOW CHILD AND FAMILY CENTRE LTD for the year ended 31 Mar¢h 2023 which comprise the Statement of Financial Activities, the Balance Sheel th¢ Cashflow Statement and the related notes. The financial reporting framework that has be¢n applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom G¢nerally Aepted Accounting Practice) including FRS 102 "The Financial Reporting Standard appIlb]e in th¢ UK and Republic of Jreland" This report is mad¢ sol¢ly to the charitable company's d1CtOrS, as a body> in ac¢ordanc¢ with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertak¢n so that we might state to the charitable coillpany's directors those matters we ar6 Rquired to state to them in an auditof5 report and for no other purpose. To the full¢st ¢xtent p¢rniitted by law, we do not accept or assume responsibility to anyone other than the ¢hariiable coinpany and the charitAble company's dlrectors as a body, for our audit work, for this repor4 or for the opinions we have formeAJ. In our opinion the financial 5tateinents: give a true and fair view of the state of the charitable CoMpanS affairs as at 31 March 2023, and of its incoining resources and expenditure of resources, including its income and expenditure, for th¢ year then ended. have been properly prepar¢d in ac¢oTdance with United Kingdom G¢nerally Accepted Accounting Practice. aiid hav¢ been prepared in ac¢ordance with th¢ r¢quirem¢nts of the Companies Act 2006. B#sls for oplnion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibiliti¢s under those standaS are fvrther described in Ihe Auditotrs responsibilities for the audit of the financial statements section of our report. We are independent of the charltable company in accordaiice with the ethlcal requireinents that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in ac¢ordance with these requirements. We believe that the audit evidence we have obtained is sulricient and appropriate to provide a basis for our opinion. Conclusions relaling to going coneern In Auditing Ihe financial statements, we have concluded that the directors, use of the going concern basi5 of accounting in the preparatioii of the financial statements is appropriate, Based on the work we have performed. we have not identified any material unrxrtainties relating to events or onditions Ihat. individually or collectively) may cast significant doubt on the charitable companys ability to continue as a going concern for a period of at least twelve months from when the financial statements are autliorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this reporL Page 8
RAINBOW CHILD AND FAMILY CENTRE LTD Company limited by guarantee Other information The directors are responsible'for the other inforniation, The other information comprises the information included in the dir¢Gtors' annual report, other than th¢ financial statements and our auditorfs report thereon. Our opinion on the financial 5tat¢m¢nts does not Gover other information and, expt to the extent otherwise explicitly stated in our repor¢ we do not express any fomi of assurance conclusion ther¢on. Jn Connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so. consider whether the other infomiation is materially In¢onsist¢nt with the finan¢ial statements or our knowled8e obtained in the audit or otherwise appears to be materially misstated. If we identify such material incon5iStenGies or apparent material misstatements, we are required to detemiine whether there is a material Inisstatement in the financial statements or a material misstatement of the other information. If, based on the work we have perforrned, we ¢on¢lude that there is a material mis5tatem¢nt of this other information, we are required to report that fact. We have nothing to r¥port in this regard. Opinion on other matters prescrlbed by the CompaDles Act 2006 In our opinion based on the work undertaken in the course of the audit: the information given in the Directors, Annual Report for th¢ financial year for which th¢ financial stateinents are pi-epai¢d is consistent with the financial statements; and the Directors Annual Report b¢en prepared in accordance with applicable l¢gal requirem¢nts. Matters on whlch we are required to report by exception In the light of our knowledge and understandin8 of the charitsble company and its environment obtained in the course of the audit, we have not identifi¢d materlal mlsstatements in the Directors Annual R¢port. We have nothing to report in respect of the followin8 matkrs where the Companies Act 2006 r¢quires us to report to you if, ift our opinion: adequate accounting records have not been kept. or the financial Slatements are not in agreement with th¢ accounting records and returns; or certain disclosures of dire¢tors' remuneration specifled by law are not made. or we liave not received all the infonnation and explanations we require for our audit. or the directors were not entitled to prepare the financial statements in ac¢ordan¢e with the small companies regime and take advantage of the small mpanIeS exernption from the requirement to prepare a strategic report. Page 9
RAINBOW CHILD AND FAMILY c[RE LTD Company limitcd by guaranlee Responslbilitles of the direttors As explain¢d more fully in Ihe Dire¢tors' Responsibilities Statement set out on page 6, the direclors (who are also tl]¢ directors of the charilable company for the purpose5 of LY)mpany law) are responsible for th¢ preparation of the financial stalements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 15 necessary to enable the preparation of financial statements that are free from mat¢rial m isstateinent, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Gharitable company's ability to coiitinuc as a going concern, dis¢losing* as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charitable company or to Cease operations. or have no realistic alternative but lo do so. Auditor's rponsIbIlitieS for the audit of the financial statements Our objeciives are to obtain reasonable 8ssuranrA about wheth¢r the finan¢ial statements as a whole are free from material Inisstatcincnt, wlicthcr due to fraud or error. And to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of a55urance, but is not a guarantee that an audit conducted in accordan¢e with ISAS (UK) will always dctcct a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individu&lly or in the awe8atc, th¢y Gould reasonably bc ¢xp¢cted to influence the ecojiomic decisions of users taken on the basis of th¢se financial statements. Explanatlon as to what extent the audit was consSdered capable of detecting irregularlties, iocludlng Irregularities, including fraud. are instsnces of non-compliance with laws and regulalions. We design procedures ii) line wilh our responsibilities, outlined above. to dct¢ct material misstatements in r¢5P¢¢t of irregularities, including fraud. However, the primary responsibility for the prevention and detection of ftaud lies with Inanag¢in¢nt and the board of directors of the charitabte company. Idenlifying and asse551Dg potential rtsk5 related to irregulArltles In identifying and assessing risks of material misstatement in respect of irr¢gularitie5, including fraud and non-compliance with laws and regulations, we considered the following: the nature of the industry. sector and the specific control ¢nvironment which it operates in. the Charities own assessment of the risks that irregularities may occur, eithcr as a r&sult of fraud or error, represeiitations and r¢sults from our enquiries with management and tho board of directors regarding their own idei)tification and assessmcnt of the risks of irreEularities: enquiries of management felatin8 to aOUntIng estimates measurements, recognjtion ¢riteri& and justificatjon of such amounts- any matters we have identified having obtained and reviewed the Chariti&s policies and procedures lating to; * identifying and &ssessing if laws and regulations are compliant and whether they are aWe of any instsnces of non-complianee; * detection and response to the risk of fraud and whether they are aware of any actual, suspected or alleged fiaud instances: * the internal controls designed to mitigate risks or fraud or non-compliance with laws and regulations. and to Jniniinise risk of manageinent overrides of such controls. Page 10
RAINBOW CHILD AND FAMILY CENTRE LTD Company limited by guaranlee all matters discussed among the audit engagement team regardlng how and where fraud could occur and th¢ potential indicator5 of fraud. As a result of these procedur¢s, we ¢on5idered the opportunities and incentive5 that may exist within the charity for fraud. The audit in¢luded assessing the procedur¢s and ¢valuating the measurement of estimations. In cominon with all audits under ISAS (UK), w¢ ar¢ also r¢quir¢d to perform specific procedur¢s to respond to th¢ risk of management override. We also obtained an understandin8 of the legal and regulatory frameworks applicable to the charity and considered that the Inost significant are the UK Companies Act 2006, SORP 2019 (FRS 102) and Charities.A¢t (Northern Ireland)2008. Audit responses to risks identified Our procedures to respond to risLs identified included the followlng: reviewiiig the financial statement disclosures, testing the relevant documentation to assess compliance with the Significant laws ajid regulations - those described as having a direct effect On th¢ financial statements. enquiring with managem¢nt and obtaining third party ¢onfirmation from the Charities Solicitors regarding any actual or potential litigation and claims. performing analylical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud: reading Ininutes of board and manageinent meetings. examine forec&sting material in line with actual perforinance. identifying any potential fraud indicators or instances: reviewing Coinpanie5 House and Charity Commission Northern Ir¢land ¢orrespondenc¢, identify any late 5ubinis5ioiis or oinission5 of mandatory information; review correspondence with HMRC. identifying non complianee of specific information to be disclosed; in addressing tlio risk of fraud through management ov¢rrid¢ of controls. testing th¢ appropriat¢n¢5s of data ¢iitrivs and adjustments; assessing whether the judgements made in maklng accounting ¢stimat¢s are indiGativ¢ of a potential bias; and evaluating the rational¢ of any significant transactions that are unusual or outside th¢ nonnal course of the Charities objectives. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team Ineinbers and reinained alert to any indications of fraud or noncompliance with laws and regulations throughout the aud it. As part of an audit in accordance with ISA5 (UK), we exercise professional jud8m¢nt and maintain prof¢ssional s¢eptiGism throughout the audit. We also: Identify and ass¢sS the risks of material misstatement of the financial statements, whether due to fraud or error, design and perforin 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, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the CircumstanG¢s, but not for the purpose of expressing an opinion on the effectiveness of the charitable company's internal control. Page 11
RAINBOW CHILD AND FAMILY CENTRE LTD Company limited by guarantee Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Coi)clude on the appropriateness of th¢ dir¢ctors' use of the going concern b&sis of accountin8 and, b&q¢d on the audit evidence obtained, whether a mY4t¢rial uncertainty exists related to events or conditions that may cast significant doubt on the ehariiable ¢ompanls ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorfs report to the related disclosures in the financial stateinents or, if su¢h disGlosur¢s are inad¢quat¢. to modify our opinion. Our conGlusions are based on the audit evidence obtained up to th¢ dat¢ of the auditofs report. However. future events or conditions may cause the charitable company to cease to continu¢ as a going concern. -Evaluate the overall presentation, slru¢tur¢ and Gontenl of the finanGial statements, including the dis¢10sures, and whether the financial statements represent the underlying transa¢tlon8 and events in a manner that achieves fair preseiitation. We communicate with those charged with governance regardin& among other matters, the planned scope and timiiig of the audit and si8nificant audit findin8s, includlng any slgnificant deficiencies in internal control that we identify during our audit. Patrick Mccroarty Senior Statutory Audltor Tor and on behalf of McGroarty Mccafferty & Company Statutory Auditor 2 C8rllsle Terrace Derry BT48 6JX Dated: 27 November 2023. Pag¢ 12