DERRY DIOCESAN TRUST INDEPENDENT AUDITOR'S REPORT TO THE CORPORATE TRUSTEE OF DERRY DIOCESAN TRUST Opinion We have audited the financial statements of Derry Diocesan Trust (the 'charity') for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The FirR8ncial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial stalements: give a true and fair view of the state of the charity's affairs as at 31 December 2022 and of its incoming resources and application of resources. for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice" and have been prepared in accordance with the requirements of the The Charities Act (Northern Ireland) 2008. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS {UKI) and appllcable law. Our responsibilities under those standards are further describ8d in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements 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 accordance with these requirements. We believ8 that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going Concern In auditing the financial statements, we have concluded that the Corporate Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriat8. Based on the work we have performed, we have not identified any materia5 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Corporate Trustee with respect to going concem are described in the relevant Sections of this report. Other infonnation The other information comprises the information included in the annual report other than the fin8ncl81 ststoments and our auditor's report thereon. The Corporate Trustee are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any fomi of assurancg conclusion thgreon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowSedge obtained in the course of Ihe audit, or otherwise appears to be materially misstated. If we identity such material inconsistencies or apparent material misstatements, we are required to detemiine whether this gives rise to a material misstatement in the financial statements themselves. 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. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Chsrities (Accounts and Reports) Regulations (Northern Ireland) 2015 require us to report to you if. in our opinion: the information given in the financial statements is inconsistent in any material respect with the Corporate Trustee's report. or sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records., or we have not received all the infomiation and explanations we require for our audit. 11
DERRY DIOCESAN TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE CORPORATE TRUSTEE OF DERRY DIOCESAN TRUST Responsibilities of Corporate Trustee As explained more fully in the statement of Trustees, responsibilities, the Corporate Trustee are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Corporate Trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Corporate Trustee are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going conrn basis of accounting unless the Corporate Trustee either intends to cease operations. or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 65(2) of the Charities Act (Northern Ireland) 2008 and report om accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurdnce about whether the financial stslements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance Is a high lev81 of assuran, but is not a guarantee that an audit conducted in accordance with ISAS (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 influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capabla of dètectlng irregularit18s, including fraud, is detailed below. Extent to which the audit was considered capabl8 of detecting Irregularitles, including fraud The objectives of our audit in respect of fraud, are., to identify and ass8SS the risks of malerial misstatement of the financial statements due to fraud. to obtain sufficient appropriate 8udit evidence regarding the assessed risks of material misstatement due to fraud, throLsgh designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detaction of fraud rests with both management and those charged with govemance of the charity. Based on our understanding of the charity and its operating environment, we determined that the most significant frameworks which have a direct impact on the preparation of the financial statements are those related to the reporting framework, {FRS 102, the Charities Act (Northern Ireland) 2008, The Charities (Accounts and Reports) Regulations {Northern Ireland) 2015, and the Charity SORP)- Compliance with these laws and regulations was assessed as part of our procedures. Other laws and regulations of which non-compliance may have a material effect on the financial statements, e.g, through fines or liligation, were identified as regulations in relation to employment law and regulations in relation to holding charitable status with the Charity Commission for Northem Ireland. Our required procedures in these areas are limited to inquiry of truslees and other management and inspection of any regulatory or legal correspondence. These limited procedures did not identify any aGtual or suspected non-compliance. We assessed the Susceptibility of the charity's financial statements to material misstatement, including how fraud might occur. including evaluating management's incentives and opportunities to manage or influence Ihe reported results. From thè results of our assessment, we determined that the principal risks of fraud relate to posting inappropriate joumal entries and use of charity funds for purposes outside of restrictions imposed by the donor. In common with all audits under ISAS (UK), we are required to perform specific procedures to respond to the risk of management override. 12-
DERRY DIOCESAN TRUST INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE CORPORATE TRUSTEE OF DERRY DIOCESAN TRUST Audit response to risks identifièd As part of an audit in accordance with ISAS (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. Audit procedures performed by the engagement leam included.. We obtained an understanding of the charilable company's internal control systems in order to design audit procedures that are appropriate in the circumstances, bul not for Ihe purposes of expressing an opinion on the effectiveness of the charily's internal control. We obtained an underslanding of how the charity cornplies with relevant laws and regulalions, including those as a result of ils registration with the Charity Commission for Northern Ireland and charitable status with HM Revenue & Customs, by making enquiries of management and those charged with governance. Enquiry of management, those Charged with governance and the entity's solicitors around actual and potential litigation and claims. Enquiry of entity Staff to identify any instances of non-compliance wrth laws and regulations. Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud Reviewing minutes of meetings of those charged with governance Reviewing finanGial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Auditing the risk of management override of ntrolS, including through testing journal entries and other adjustments for approprialeness, and evaluating the business rationale of significant transactions that are unusual or oulside Ihe normal course of business. Auditing the risk of use of charity funds outside of restrictions imposed by the donor by review of funding letters of offer lo identify restrictions, and review of funding claims prepared by management to check compliance with restrictions. We commLtnicated relevant laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealm8nt through collusion, forgery, intentional omissions, misrepresèntations or the override of internal control. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https'.11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charity's trustees. as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015. Our audit work has been undertaken so that we mighl state to the charity's trustees those matters we are required to slate to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. n Bradley {Senior Statutory Auditor) for and on behalf of Moore INI> LLP 27 October 2023 Chartered Accountants Statutory Auditor 21123 Clarendon Slreet DerrylLondonderry BT48 7EP Moore (Nl) LLP is eligible for appointment as auditor of the charity by virtue of its eligibilily for appointment as auditor of a company under section 1212 of the CompaniesAct 20. 13-