Registration Number N1031527 Charity Number NIC104797 DERRY THEATRE TRUST Trustees, Report and Consolidated Financial Statements for the year ended 31 March 2023 DERRY THEATRE TRUST Trustees, officers and advisors Martin Bradley Mary McKenna Martin Mullan Sandra Biddle Dolores O'Reilly Conal Casey Sliauna Cusack* Sean Carr Resigned 04 May 2023 Patricia tA)gue Resigned 04 May 2023 Sean Fleming Appointed 06 July 2023 Niree Mcmorris Appointcd 06 July 2023 nominated by Derry City & Strabane District Council Trustees of Derry Thealre Trust and M Forum Trading Limited Resigned 02 September 2022 Directors of subsidiary company Millennium Foruni Productions Limited Martin Bradley David McLaughlin Key Management Personnel Chief Executive Officer Fiiiance Manager Box Office Maiiager Teclinical Manager General Maiiager Secretary Mary McKenna David McLaughlin Elaiiie McParland Lisa Heaney Lorcan McLaughlin Paul Mason HMRC Charity No. Cbarity Commlsslon No. XR16635 NIC104797 Registered Offlce & Business Address Newmarket Street Londonderry BT48 6EB Independent Auditors McDaid Mccullough Moore Chartered Accountants and Statutory Auditor 28132 Clarendon Street Derry BT48 7HD Bankers Allied Irish Bank Strand Road Londonderry BT48 7TN Solicitors Gu¢kian Flanagan Solicitors 7 Limavady Road Londonderry BT47 6JU DERRY THEATRE TRUST Trustees, Report and ConsolldAted Flnan¢ial Stst¢ments for the year ended 31 March 2023 Contents Page Trustees, annual report (incorporating directors report and strategic report) 2 - 7 Trustees, responsibility statement Independent auditors, report 9-12 Consolidated statement of financial activities 13 Consolidated statement of financial position 14 Company statement of financial position 15 Consolidated statement of cash flows 16 Notes to th¢ financial statsments 17-38 Page I DERRY THEATRE TRUST Company lin)ited by guarantee Trustees, report (incorporating the directors, report and strategic report) for the year ended 31 March 2023 The Trustees, (in their capacity as Trustees, and Directors) present their annual report for the year ended 31 arch 2023. This report has been prepared by the trustees, in accordance with the requireinents of Section 414 of tlie Companies Act 2006. The results represent a complete year of trading, the first complete year since the Covid pandeinic. The company is a regislered charity, limited by guarantee whose governing document is the memoranduin and articles of association. strategie Report Objectives & activities Thc principal activity of Derry Theatre Trust is tlie operation of the Millennium Forum theatre complex for arts and cntertaiiiment purposcs. The Trust was established to promote, maintaiii, improve and advance the education of the public in the City of Derry and Northern Ireland, in the Arts. To achieve this objective the theatre has put on a wide variety of shows, including professional shows such as West End productions, perfonnaJi¢es by local ainateur drama groups, educational projects. comedy acts and internationally recognised musicians. The general public, male and female, young and old, have access to a wide variety of perforinances to suit all tastes. The tlieatre also provides an educational outreach prograinme during the summer montlis in conjunction with local schools and local groups which provides a framework for development of local artists. The faci lities of tlie theatre are also used by local drama, miisic and dance groiips. The aims of Derry Theatre Trust / the Milleiiiiium Forum theatre are: to present a unique theatrical experience. to promote arts & Culture in the North W¢st of Ireland, to establish tlie Milleiiiiiuin Forum as a leadiiig conference centre. and to develop and sustain a successful organisation and to provide public benefit. The trustees, vision for the Millennium Forum is to be tlie regional theatre of choice for the Nortli West. delivering a finaiicially sustainable mixed arts programme accessible to the majority of people in the catchment area. The entertainment programme aims to satisfy the audience, ensiiring maximum box office incoine at miniinum cosL without reducing standards and maintaining the financial stability of the theatre. Public benefit Derry Theatre Trust strives to ensure that the Millennium Forum provides public benefit. The public benefit test is at tlie hcart of what it means to be a charity. Dcrry Theatre Trusvs principal objective is to establish, maintain and promote a theatre for arts and entcrtainmcnt purposes. In setting this objective the Trustees have coiisidered the Charity Commission for Northern I￿land'S guidancc on public benefit to ensure that its activities have helped to achieve its principal objective of public b¢n¢fit for its beneficiaries. The public benefjt that Derry Theatre Trust provides through promoting its activities are: presenting live perforillances of plays, musicals, opera, dance, comedy acts, childrens shows and various genres of music. providing hire facilities for local groups (drama. musical, dance). provisioii of ali all iii oiie leisLire r'd¥ilily in Ihe form of tlieatre, restaurant & bar facilities. enhanoing the local economy froin audiences visiting the theatre and staying in the area, resulting in increased business for hotels, bars, restaurants and taxi companies. Page 2 DERRY THEATRE TRUST Company limited by guarantee Trustees, report (incorporating tlie directors, report and strategic report) for the year ended 31 March 2023 coiitinued contracting witli local suppliers for foodlbar stocks, brochure production and advertising. and providing full aiid part time employment. The Trustees, give careful consideratioii in setting admission prices to the theatre, so that the facility is aGcessible to everyone interested in the Arts, in that adimission prices differ dcpending on tlie niglit of the performance, on seat location etc. Local aTnateur drama groups also benefit from rediiced theatre hire rates. The trustees, believe tliat they are tlier¢forc meeting the public benefit test by increasing the accessibility of the theatre to both payiiig patroiis / local groups and tlie commercial effect of. the theatre location to the IoLal economy. Aehievements and performances The results presented are for 12 months trading. Key performance indicators for tlie company are as follows: 2023 120 231 168,501 2022 45 I I I 58,294 Shows/conferences Performances Audience In pronioting its principal objective of promoting the Arts, diiriiig tlie year the theatre programme included West End Sliows sucli as Blood Bros aiid Six, musical performances by Imelda May and The High Kiiigs, Ainateur performaiices of High Scliool Musical, comedy acts sucli as Tommy Tiernan and Jason Manford, cultural shows raiigiiig from tlie Ulster Orchestra to the Ukraii)ian Ballet as well as local performance shows of Cinderella and Myra. Financial review Income for the year was £4,842,610 (2022 £2,427,178) resulting in an operating deficit of (£139,297) (2022 (£212,661)) before actuarial chaiiges in the pension scheme. A detailed analysis of income aiid expeiiditure is provided in notes to the accounts. Grant aid. in addition to Core funding from Derry City & Strabane District Council aiid the Arts Council, of £160,936 was obtaiiied. Net assets at the balance slieet date were £8,241,590 (2022 - £7,169,877). The valuation of tlie pension scheme assets and liabilities at tlie balance sheet date resulted in a surplus of £1,211,000 (2022 siirplus £507,000). The SLirplus on the pension scheme was a result of changes to key assuinptions used to calculate the present value of the scheme assets and liabilities. The discount ratc has increased by 1.9 %, the CPI inflation assuTnption has reduced by 0.4 % aiid the salary increase assumption has reduced by 0.40/0. I'here has also been a change to the post retirement mortality assumptions. Coiitinued provision of core funding from Derry City & Strabane District Council £443,300 (2022 £443,300) and The Arts Council £90,250 (2022 - £70,250) are of vital importance to the operation of the theatre. Additional fundiiig of £49,850 from the Arts Council and £17,141 from Derry City & Strabane District Council was obtained to help counter the cost of living crisis. The Trustees gratefully acknowledge the continued support of all fundiiig bodies. The trustees, are satisfied with the results for th¢ year and expect a coiitinued improvement in results when public confidence lias been fully restored after the Covid pandemic. Page 3 DERRY THEATRE TRUST Company limited by guarantee Trustees, report (incorporating the directors, report and strjtegic report) for the year ended 31 March 2023 contiiiued Prin¢lpal risks and uncertainties The manageinent lias coiidLl¢ted its own review of the major risks to which the Trust is exposed and systems liave been establislied to mitigate those risks. The principle risk ii) the current climate is business performance risk. This is tlie risk tl)at the theatre will iiot operate as expected due to both interiial and external factors such as Covid-19 and social distancing requirements and also competition in the Arts sector. Measures to mitigate this risk include appropriate management personiiel, business planning and reporting and financial controls. The Trust continually monitors its exposure to financial risk. Given the size of the group & company, the trustees have not delegated the respoiisibility of monitoriiig financial risk to a sub cominittee. The policies set by the trustees are impleinented by tlie finance departineiit. The financial viability aiid sustainability of the theatre is a major risk recognised. The shows performance scliedule is of utmost iinportaiice aiid is carefully planiied to eiisure adequate cashflows and where possible to maximise fuiidiiig. Diversification of activities via M Foriim Tradiiig Liinited and Mi1Sennium Forliin Productions Limited, including Inore eillphasis on the income geiierated froin tlie bars, spoiisorship and advertising have also been identified. Business and finance risk is managed by ensuring appropriate staff, with appropriate experience are in place and budgets and forecasts prepared and reported on Inonthly. The reporting iietwork inakes use of ali established IT systein wliich combines a general accounting package, a bar software package and a box office system, all of whicli are continuously updated and maintained. The Trust's financial assets includes cash, trade and otlier debtors and trade creditors and accruals togetlier with defei'red inconie. Associated risks include credit risk and liqiiidity risk. To minimise credit risk the Trust has iinplemeiited policies that requ ire appropriate credit checks on potential customers before traiisactions take place. To minimise liquidity ris1( performaiices are carefully planiied to ensure appropriate cash flows exist to meet operational costs (advance box office ticket sales reduces liquidity risk). Internal risl(s are minimised by the iinplementation of coiitrols and procedures for authorisatioii of all transactioiis. The theatre is committed to operatiiig in a healthy and safe working environment. Health & safety risk is minimized by impleineiitatioii and promotion of health and safety policies and extensive training. Covid-19 health & safety me&8ures introduced incliide appointment of a Health & Safety officer, hand and hygieiie washing procedlires, social distanciiig protocols signage aiid floor markings aiid provision of PPE equipmeiit. Health & safety Tlie company has iii place a Health and Safety Policy which requires it to comply as a minimum with all legislation and to take all reasoiiable practicable steps to ¢iisure tlie safety, health and welfare of all employees, patrons and anyone else affected by tlie activities carried out. Page 4 DERRY THEATRE TRUST Company limited by guarantee Trustees, report (incorporating tbe directors, report and strateg5c report) for the year ended 31 March 2023 continued Trustees, Annual Report Structureg governance and management Governing document The Trust is a charitable coinpany, limited by guarantee (willi no sliare capital) aiid its governing docuineiit is its Memorandum and Articles of Association. The Trusts charitable status IS T¢cognised by HM Revenue & Customs Charity nuinber XR16635. The company is registered with the Charities Commission, No. NIC104797. Organisational structure Derry Theatre Trust is managed by the trustees. Trustees are either noininated - by Derry City & Strabane District Couiicil or ord inary cliosen based on tlieir skills and professional backgrounds so as to eiisure a wide range of experience is represented on the Board. Trustees ineet bi-monthly to review performaiice, determiiie strategies, assess risk and plan future policies. Tlie Trust has two wholly owned subsidiary compaiiies, M Foruin Trading Limited aiid Millenniuin Foriiiii Productions Ltd. M Forum Trading Limited is responsible for tlie theatrical operation of the Millennium Forum, including all aiicillary services such as the operation of the box office aiid the bars. All costs incurred, other tlian wages (a cost of Derry Tlieatre Trust), are incurred by M Forum Trading Limited. Any year end surplus is gifted to Derry Theatre Trust, who also collects the rental income, receives the operatiiig graiits from Derry City & Strabane District CoLiiiciI and the Arts Council aiid employs and pays the staff to operate the theatre. The Trust owns the freeliold property and the plaiit and machinery together witli fixtures and fjttings, Millennium Forum Prodiictions Ltd is respoiisible for producing the exteriial touring performances of Titanic Danc¢" and other productions that may arise. The Trust is managed daily by the chief executive, David McLaughlin and senior employees. The senior employees from fiiiance, box office, marketing, development, front of house, technical and tlie bars, report daily to the ch ief executive ensuring the smooth operation of tlie tlieatre. The chief ¢xecutiv¢ is responsible for artistic policy, contracting with artists and booking the daily prograin of performances and also for cnsuring that the theatre complics witli all r¢l¢vent rcgulations iiicluding Covid-19 and social distancing regulations and other health & safety requireinents of staff and the public. Various sub committees operate at th¢ theatre to look into all aspects of operations such as funding and access to the Arts for all, including patrons who suffer from dementia. The Trust is an equal opportunities employer committed to positive policies on recruitment, training aiid career developinent for staff members (and potential staff members) regardless of marital status, religion, colour, race, ethnic origin or disability. The Trust also accominodates custoiners with disabilities with the use of Braille materials, captioned performances, the loop system, signed performances, relaxed performances and special access to certain parts of tlie auditorium. Page 5 DERRY THEATRE TRUST Company Ilmited by guarantee Trustees, report (incorporatlng the dlre¢tors' report and strategic report) for the year ended 31 March 2023 coiitiiiued Appointment and training of trustees New trust¢es are nominated by currcjit trustees and from nomiiiations proposed by Derry City & Strabane District Council. Also in 2023 public advertisemellts were placed in local media seeking new trustees. Induction and training of new trustees is providcd by existing trustees and by employees. Most trust¢¢s, due to their experiencc and backgrounds are already familiar witli the work of the theatre. Investment policy The Trust operates a prudent investinent policy. Jiivcstments opportunities wheii they arise are in the form of short term, low risk baiik deposits. Reserves policy The trustees have examined the charity's requirements for reserves taking into accouiit the risks that the Trust has recogiiised. The reserve requirement is estiinated to be at least tliree months of expenditlire. Expenditure of the charity is currently £4.98 million, equatiiig to quarterly expenditure of approximately £1,245,000. Tlie Trust intends to iiicrease reserves to tliis desired level wlien future opportunities arise. The actual reserves at 31 March 2023 falls short of tlie desired level and the trustees recognise it will take a coiisiderable period of time to acliieve tlieir target but aiiticipate a gradual increase over time. Plans for the future The TrLlStees' future aims are.. l. The financial viability of tlie tlieatre. 2. Maintaining tlie theati'es position as the ultimate venue of choice for tlieatre goers in the catchment area. 3. Ensuring maximum accessibility of the theatre to all groups in the catchment area. 4. The introduction of additional programming that will attract iiew patrons to the theatre. 5. To co-operate witli other bodies in produciiig work that can tour tlie major theatres in Northern Ireland, the Republic of Irelaiid, mainland UK, Chiiia and USA. and 6. To inake facilities available to local groups, at a cost that is not prohibitive. The Trustees,, as a result of tlie above aims, expect to increase core revenue streams whilst continiiing to promote non core activities. Tlie future plans of th¢ Triist encompass strategies that are designed to broaden the Theatr¢'s audien¢¢ base, to confirm its position as the cultural centre of the north west and to maintain financial stability- Related parties Dcrry City & Strabane District Council, with whom the company has a close working relatioiiship, nominates trustees to the board of trustees and attends the monthly board meetings. The Trust continues to receive vital annual funding from Derry City & Strabane District Council and Arts Council towards core operating costs. Donations The Millennium Forum charges a development donation on all ticket sales. This donation during the year was £182,143 (31 March 2022 £74,0001). This donation is a restricted fund and will be used for improvements, developmeiit of shows, enliaiiceiiieiit expeiiditui'¢ wid futui'e refui'bisliineiil pl￿JeLl5 ai ilie iliealre. Page 6 DERRY THEATRE TRUST Company limited by guarantee Trustees, report (fincorporating the directors, report and strategic report) for the year ended 31 March 2023 continued Environmental policy Tlie group & coinpaiiy is committed to reducing its environmental impact and to continually improving its e11viroiimental performwice. It has a duty of care with respect to its environmeiital practice and to achieve this it: wholly supports and coinplles with tlie requirements of curreiit envirojimental legislation and codes of practice. rninimises waste aiid recycles as much as possible. mininiises energy and water waste iii order to coiiserve supplies and also consumption of natural resources, especially where they are non-renewable. operates and maliitaiiis equipment with due regard to environmental issues. assesses, in advance, the eiivironmeiital iinpact of any new products or services intended for introduction, so that no damage is done to tlie environment. ensures that all employees uiiderstand the group & company's environinental policy and conform to the staiidards by trainiiig and iiistruction. proinptly addresses aiiy complaiiits abolit breaclies of environmental policy to the satisfaction of all concerned; and coiistantly reviews policy to ensure adequacy. Statement of disclosure of information to auditors We, tlie trustees of the charitable coiiipany who lield office at the date of approval of these financial statements as set out above each coiifirm, so far as we are aware, that: there 15 no relevent aiidit inforination (information needed by the cliaritable group & company's auditors in connection with preparing their report) of which the cliaritable coinpany's auditors are unaware, and we have taken all the steps tliat we ought to have taken to make ourselves aware of any relevent audit informatioii and to establlsh that tlie charitable company's auditors are aware of that iiiformation. Auditors McDaid Mccullough Moore are deemed to be reappointed in accordance with Section 487(2) of the Coinpanies Act 2006. This report is prepared in accordaiice with the special provisions of part 15 of the Companies Act 2006 relating to mediiim sized companies. The Chairman and Trustees would like to express their thanks to the management and staff at tlie Milleiiniuin Forum for their eiideavolirs over the last year and to the theatre patrons for their continued support. This report was approved and authorised for issue by the Trustees on 7 September 2023 and signed below on its behalf by: Mary McKenna Secretary Page 7 DERRY THEATRE TRUST Trustees, responsibility statement for the year ended 31 March 2023 Trustees, responsibilities Tlie trustees are responsible for preparing the trustees aiiiiual report and the fiiiancial statements in accordance with applicable law and regulatioiis. Company law requires the trustees to prepare financial statements for each financial year. Under that law the truste¢s have elected to prepare the financial statements iii accordance witli United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under coinpaiiy law the trustees inust not approve tlie financial statements iinless they are satisfied that they give a true and fair view of the state of the affairs of tlie charitable company aiid of the incoming resources and application of resources, including the incoine and expeiiditure, of the cliaritable coinpany for that year. In preparing tliese financial statemeiits tlie trustees are required to: select suitable accounting policies and apply them consistently. observe the metliods aiid principles in the Charities SORP2019. make judgements and estiinates tliat are reasoiiable aiid prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explaiiied iii tlie fiiiancial statemeiits. and prepare the financial statements on the goiiig concern basis unless it is inappropriate to presume that the charitable coinpany will continue in biisiness. Tlie trustees are responsible for keeping adequate accounting records that are sufficient to show and explain tlie charitable coinpany transactions and disclose witli reasonable accuracy at any time the financial position of the charitable company ai)d to eiiable thein to ensure that tlie finaiicial statemeiits comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable coimpany and hence for taking reasonable steps for the preveiition and detection of fraud and oth¢r irregularities. Page 8 DERRY THEATRE TRUST Independent auditor's report lo the members of DERRY THEATRE TRUST We Iiave audited the financial stateinents of DERRY THEATRE TRUST (the charitable company) and its subsidiaries for tlie year ended 31 March 2023 wliich comprise the consolidated statement of finaiicial activities, the consolidated and charitable company stateinent of financial position, the consolidated statemeiit of cash flows and notes to tlie fiiiancial statements, including a summary of significant accounting policies. The fiiiancial reporting frainework that has been applied in their preparation is applicable law and United Kingdom Accoiinting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accouiiting Practice). In our opinion the fiiiancial statements: give a true aiid fair view of tlie state of the group's and parent charitable company's affairs as at 31 Marcli 2023, and of the group's iiicoinliig resources and application of resources, including its income and expenditure, for the year then ended. have beeii properly prepared in accordance with United Kingdom Geiierally Accepted Accounting Practice. and have been prepared in accordance with tlie requiremeiits of the Companies Act 2006. Basis for opinion We conducted our aiidit in accordance with International Standards on Auditing (UK) (ISA'S (UK)) and applicable law. Our responsibi lities under those standards are furtlier described in the Aiiditor's responsibilities for tlie audit of tlie financial statements section of our report. We are independent of the group and parent charitable company iii accordance witli the ethical requirements that are relevant to our audit of the fiiiancial stateineiits in the UK, iiicludiiig tlie FRC'S Ethical Standard, and we have fulfilled our other ethical respoiisibilities in accordance with these requirements. We believe that the audit evidence we liave obtained is sufficient and appropriate to provide a basis for our opinioii. Concluslons relating to Going Concern Iii auditing tlie financial statemeiits, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the fiiiancial statements is appropriate. Based on tlie work we have perforined, we Iiave not ideiitlfied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the respoiisibilities of the trustees with respect to going concern are described in tlie relevent sections of this report. Other information The trustees, are responsible for the other information. The other information comprises the information included in the trustees, aiinual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial stateinents does not cover the other information and, except to the extent otherwise explicitly stated in our reporL we do not express aiiy form 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 iiiformatioii is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material incoiisistencies or apparent material miststatements, we are required to deterniine whether there is a material misstateinent in tlie financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. Page 9 DERRY THEATRE TRUST Independent auditor's report to the members of DERRY THEATRE TRUST continued We Iiave nothing to report in tliis regard. Opinion on other matters prescribed by the Companies Act 2006 Iii our opinion, based oil the work undertaken in tlie course of th¢ audit: the inforniatioi) given in the trustees, report (incorporating tlie strategic report and the trustees, report) for the financial year for wliicli the financial statements are prepared is coiisistent with the financial statemeiits. aiid the trustees, report (including tlie strategic report) has been prepared in accordaiice with applicable legal requiremeiits. Matters on which we are requircd to report by exception Iii tlie liglit of our knowledge and understaiiding of the group & company and its environment obtained iii the course of the audit, we have not idenlified material misstatcinents in the trustees, report. We Iiave notliing to report in respect of the following matters in relation to which thc Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have iiot been kept, or retums adequate for our audit have not been received from branches not visited by us. or tlic charitable group & coinpany's finaiicial statements ar¢ iiot in agreement with the accounting records and returns. or certain disclosiires of trustees, remiineration specified by law arc iiot iiiade. or we have iiot received all tli¢ inforination aiid explanations we require for our audit. Responslbllities of trustees, As explained more fully iii tlie trustees, responsibilities statemenL the trustees, (who are also the directors of the charitable company for the purpos¢s of company law) are respoiisible for the preparation of the financial statements and for beiiig satisfied that they give a true and fair vlew, aiid for such internal control as the trustees, determine is necessary to enable tlie preparation of fiiiancial statements that are free from material misstatement, whether due to fraud or error. In preparing tlie finaiicial statements, tlie trustees, are responsible for assesslng the groiip's and parent charitable company's ability to continu¢ as a going coiicern, disclosing, as applicable, matters related to going concern and iising thc going concern basis of accounting unless th¢ trustces, eithcr intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alt¢rnativc but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtaiii rcasonable assurance about wheth¢r the financial statcments as a whole are free from material misstatemeiit, wliether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a Iiigh level of assurance, but is not a guarantee that ali audit conducted in accordance with ISAS (UK) will always dctcct a material misstatement wheii it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could re&sonably be expected to influence the economic decisions of users taken on the basis of these fiiiancial stateinents. Page 10 DERRY THEATRE TRUST Independent auditor's report to the men]bers of DERRY THEATRE TRUST continued Irregularities, including fraud, are instaiices of non-coinpliance with laws and regulatioiis. We design procedures in line with our responsibilities, outlined above, to detect material mistatements in respect of irregularities, iiicliid ing fraud. The exteiit to which our procedures are capable of detecting irregularities, including fraud is detailed below. Based on our understandiiig of the charitable group & company and the environmeiit in wliich it operates, we identified that the group & company's principal risks were of non-compliance with laws and regulatioiis relating to charitable companies, and we considered tlie extent to which non-coinpliance might have a material effect on the financial stateineiits. We also ¢onsid¢r¢d laws and regul