Independent auditors, report to the Trustee of Dromore Diocesan Trust Dlsclalmer of Opinion We were engaged to audlt the financial statements of Dromore Diocesan Trust (the "charity") for the yèar ended 31 December 2023 whlch comprise the statement of financial activities, th8 balance sheet, the cash flow statement and notes to the financial statements, including a summary of slgnlficant accounting pollcles. The financial reporting framework that has been applled In thelr preparation Is appllcable law and United KingdomAccounting Standards, including Financial Reportlng Standard 102 The Flnanclal Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) and the Charities SORP (FRS 102) We do not express an oplnlon on the accompanying financial statements of the charity. Because of the significance of the matt8rs described in the Basis for Disclaimer of Opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide basis for an audit opinion on these financial statements, Basls for D18claimer of Oplnlon The charity has a provision for liabilities, as set out in note 18, that has created a deflclt in unrestricted reserves within the Curia, as set out in note 19. We have been unable to obtaln sufficlent audit evidence that the charity will be able to settle the liabilltles wlthln the provision as well as addressing the deficit in the curia unrestricted funds to prepare the financial statements under the going concem basis. As a result of thls matter, we were unable to determine whether the charlty Is a 90ing concern and any adjustments that mlght need to be made if the flnancial statemènts are not prepared on the goin9 concern basls. Other Informatlon NOlthSnd1ng our dlsclalmer of an oplnion on the financlal statements, In the light of the knowledge and understanding of the charity and its environment obtained In the course of the audit performed subject to the pervasive limstation described above, we have not Identlfied material mlsststements in the trustee's report. The comparative financial statements are unaudited. 20
Independent auditors, report to the Trustee of Dromore Diocesan Trust (continued) Matters on whlch the audltor Is requlr•d lo roport by exception Arising from the limltation of our work referred to above, we have not obtalned all th8 information and explanations that we considered necessary for the purpose of our audit. We have nothing to report In respect of the following matters In relatlon to which the Charities (Accounts and Reports) Regulations (Northem Ireland) 2015 require us to report to you if, in our opinion- sufflclent accounting recor(Is have not been kept,, or the financlal statements are not In agreement with the accounting records. Respon81bllltlo8 of Tru8toe As explained more fully in the Trust88's responsibilities statement set out on page 20. the Trustee is responsible for the preparation of financial statements which give a true and fair vlew, and for such internal control as the Trustee determines is necessary to enable the preparatlon of flnanclal statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustee is responsible for assesslng the charity's ability to continue as a going concern, disclosing, as applicable. matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the charity or to Cease operations, or have no realistic alternative but to do so. Audltorf8 re8pon8lbllitie8 for the audlt of the flnanclal Statements Our responslblllty is to conduct an audit of the charity's financial statements in accordanGe with International Standards on Auditlng (UK) and to issue an auditorfs report, However, because of the matter described in the Basis for Disclaimer of Opinion section of our report, we were not able to obtain sufFicient appropriate audit evidence to provide a basis for an audit oplnlon on these financial statements. We are independent of the charity in accordance with the ethical requlrements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethlcal Standard, and we have fulfilled our other ethical responsibilities In accordance with these requirements, 21
Independent auditors, report to the Trustee of Dromore Diocesan Trust (continued) Irregularities Including fraud We have been appointed as auditor under sectlon 65(2)3 of the Charities Act (Northern Ireland) 2008 and report in accordance with the Act and relevant regulations made or having effect thereunder, Our objectlves are to obtain reasonable assurance about whether the financial statements as a wholè are free from materlal mlsstatement, whether due to fraud or error, and to issue an auditor's report that includes our oplnlon. Reasonable assurance is a high level of assurance, but is not a guarantee that iqn audlt conduptèd In accordance with ISAS (UK) will always detect a material misstatement when It exlsts. Misstatements can arise from fraud or error and are considered material if, Indlvidually or in the aggregate, they could reasonably be expected to influence the economic declslons of users takèn on the basis of these financial statements, The extent to which our procedures are capable of detecting irregularities, including fraud 15 detailed below; Our approach was as follows; We obtained an understanding of the legal and regulatory frameworks that are appllcable to the entity and determined that the most significant are those that relate to.. the charitable status of the Charity ancl its registration with The Charlty Commisslon for Northern Ireland under the Charities Act (Northern Ireland) 2008 and the Charities Act (Northern Ireland) 2013- compllance wlth the Charltles SORP {FRS 102) (second edition October 2019) Accounting and Reportlng by Charltles.. Statement of Recommended Practice applicable to charltles preparlng thelr accounts In accordance with the Financial Reporting Standard appllcab18 In the UK and Republlc of Ireland (FRS 102) (effective 1 January 2019)., data protection laws (including UK General Data Protection Regulation (GDPR))- and safeguarding of children, young people and adults in need of proteGtion. We assessed the risks of material misstatement In respect of fraud with the consideration ot. the Charity's own assessment of the risks that irregularities may occur esther because of fraud or error that was approved by the directors of the Trustee., the results of our enquiries of management and the Audit Committee about thelr own identification and asse5srnent of the risks of Irregularltles; any matters we identified having obtained and revlewed the Charlty's documentation of their policies and procedures relating to., identifying, evaluating and complying with laws and regulatlons and whether they were aware of any instances of non-complianGe, detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; 22
Independent auditors, report to the Trustee of Dromore Diocesan Trust (continued) the internal controls established to mitigate risks of fraud or non-compllanc8 With laws and regulations,, and the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potentSal Indicators of fraud. Based on the results of our risk assessment we deslgned our audlt procedures to identify non- compliance with such laws and regulations Identified above. we considered the upportunities and Incentlves that may exist wilhin the organisation for fraud and identified the greatest potentlal for fraud in the areas of the controls covering the receipt of donations and offerlngs that are received in cash and in which management is quired to exercise significantSudgment, such as disclosure ofadjusting items. In common wlth all audits under ISAS (UK), we 8re also required to perform specific procedures to respond to the rlsk of management override, we also obtained an und8rstanding of the legal and regulatory framework that the Charlty operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financlal statements. The key laws and regulations we considered in this context Included Nl Charity legislation (including the regulator, The Charities Commission for Northern Ireland) and the Charlty SORP, in addition, we considered provisions of other laws 8nd regulatlons that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity's ability to operate or to avold a material penalty. This Included data protection and safeguarding. we made enqulrles of management and those charged with governance and revlewed mlnutes of the Board of the Trustee and Parish Finance Commlttees and enqulred about any communications with the charity re9ulator. Audlt procedure8 d081gned to respond to the risk5 of fraud we considered the risk of fraud through management overrlde and, in response, we incorporated testing of manual journal entries into our audlt approach, we considered the risk of fraud through transactlons outside the normal course of transactions by noting anything that was unusual In nature or size and enquired about such transaction to gain an understanding of their nature. based on the results of our rlsk assessment we designed our audil procedures to identify and to address material mlsststements In relation to fraud and other irregularities. we reviewed the operatlon of the controls within the Parishes over the collections, donations and offerings and the segregatlon of duties within those controls and those controls within the Curia, together wlth substantive testing and analytical review and Incorporating an element of unpredlctability in the selection ofthe nature, timing and extent of audlt procedures. we evaluated the selectlon and appllcatlon ofaccounting policies by the Charity, particularly those related to subj'ective measurements and complex transactions, that may be indicative of fraudulent financial reportlng. 23
Independent auditors, report to the Trustee of Drornore Di0san Trust (continued) Use of our ieport This report is made solely to the charity's Trustee, as a body, In accordance wlth Part 4 of the Charities (Accounls and Reports) Regulatlons (Northem Ireland) 2015. Our audit work has been undertaken so that we mlght state to the charity's Trustee those matters we are requlred to state to the Trustee In an audltor's report and for no other purpose. To the Mllest extent permltted by law, we do not accept or assume responsibllity to anyone other than the charlty and the charity, Trustee as a body, for our audlt work, for this report. or for the oplnlons we have formed. Hill Vellacott Chartered Accountants and Statutory Audltor 22 Great Victoria Street, Belfast, BT2 7BA 31 October 2024 Hill Vellacott 5$ eligible to act as an audltor in terms of sectlon 1212 of the Companles Act 2006. 24