DEVELOPING HEALTHY COMMUNITIES (DHC) LIMITED (A company limited by guarantee) Independent auditor's report to the members of DEVELOPING HEALTHY COMMUNITIES {DHC) LIMITED We have audited the fLnancial statements of DEVELOPING HEALTHY COMMUNITIES (DHC) LIMITED {Ihe charitable company) for the year ended 31 March 2023 whiLh Lomprise thc statement of financial activities, the statement of financial position, the statement of cash flows and notes to thc financial statements, including a summary of significant accounting policies. The tin¢Lncial rcporting framework that has bccn applied in their preparation is appliLable law and United Kingdom Accounting Standards, including FinCIal ReporLirhg Standdrd 102 The Financial Reporting stdard applicable in the UK and Republic of Ireland (United Kingdom cnerallY Accepted Accounting Practice). In our opinion thc financial statements-. give a true and fair vicw of thc state of the charitable company's allairs as at 31 March 2023, and of its incoming resourccs and application of resources, including ils income and expcnditure, for the year thcn cnded; have been properly pi'eparcd in accordance with United Kingdom Generally Accepted Accounting Practicc. and havo bccn prepared in accordanco with thc requirements of the Companics Act 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (I,SA's (UK)) and applicable law, Our responsibilities under those standards are further described in the Auditor's responsibilities for th¢ audit of the financial statements section of our report. We are independcnt of the charitable company 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 requiren*nts, We believe that the audit evidence w¢ have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to Going Concern We have iiothing LO report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where: the directors, use of the going concern basis of accounting in the presentation of the financial statements is not appropriate. or the directors have not disclosed in the fjnancial staiements any identified material uncertainties that may cast significant doubt llbout the company's abilily to continue to adopt the going concern basis of accounting for a period of at least twelve months fvom the date when the financial statements are authorised for issue. Other information The directors are iesponsible for the other information. The other information comprises the information included in the annual report, othcr ihan the financial statements and our auditor's report thereon. Our opinion on the financidl sldtemcnts docs not cover the other information and, cxcept lo the extent otherwiyc cKplicitly stated in our Teport, we do not express ny form of assuiancc conclusion thereon. In connection with our audil of the financial statemenLs. our responsibility is to read thc oiher information and, in duing so, consider wheiher the other information is malerlally inconsistcnt with the financial statemcnts or our knowledge obtained in the audit or othcrwise appears to be materially misststed. If we identify such material inconsistcncies or apparent tndterial miststalements, we are requircd to determine whethcr thcic is a material mis.8tatcmenl in the financial statements or a material n]isstatcmeni of the other inforn]ation. Ir, based on the work wc have performed, we conclude that thero is a material misstaterDent of this othor information. we arc rcquir¢d to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work und¢rtaken in the course of the audit.. the information given in the trustees report and the directors, report for th¢ financial year for which the financial statem¢nts are prepared is consistent with the financial statements. and Page 12
DEVELOPING HEALTHY COMMUNITIES {DHC) LIMITED (A company limited by guarantee) the trustees, report (including the strategic report) has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the company and its environment obtaRned in the course of the audit, we have not identified material misstatements in the strategic report and the direc¢ors' report. We have nothing to report in respect of the following m<itters in relation to which the Companies Act 2006 requires us to rcport to you if, in our opinion.. adcqudte accounting records have not becn kept, or returns adequate for our audit have not been received from branches not visitcd by us. or ihe financial statements are not in agrecmcnt with the accounting rccords and returns. or ccrtain disclosures of trustees, remuneration spccificd by law are not made. or we have not receivcd all thc information and explanations we Icquire for our audit- or th¢ directors were not entitled to prepare the fitiancial st&tements in accordancc with the small companies regimc and take advantage of thc small companies, exemptions in preparing the directors, report and from the requir¢ment to prepare a strategic report. Responsibilities of trustees As explained more fully in the trustees, responsibilities statcment set out on page 6, the trustees (who ar¢ also the directors of the charitable company for the purposes of company law) 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 ihe trustees determine is necessary to enable the preparation of flllancial statements that are free from material misSt&tement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for &ssessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going CODc¢rn 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 bul to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obthln reasonable assurance about whether the financial statements 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 level of assurance, but is not a guarantce 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, individudlly or in the aggregate, they could ieasonably be expected to influence the e¢onomie decisions of users taken on the basis of these financial statements. IrregularitiC5. including fraud. are instances of non-compliance with laws and rcgulations. We design procedures in line with our responsibilities, outlincd abovc, to detect material mistatements in respect of irregularitics. including fraud. The extenc to which our procedures are capable of detecting irregularities. including fraud is detailed below- Based on our undcrstanding of the company and the environment in which it opcrates, we identified that the principal risks of non-compliance with laws and rcgullltions related to those standard to small charitable companies. and we considered the ext¢nt to which non- compliance might hav¢ a material effect on the financial statements. We also CQD.8idcred laws and regulation.s thai have a direct impact on the preparation of the financial Statements such as the Companies Act 2006. income tax and payroll tax. Audit procedures perfornied included the following: Inspecting correspondence with regulators and taK authorities. Page 13
DEVELOPING HEALTHY COMMUNITIES (DHC) LIMED (A company limited by guarantee) Discussions with manag¢ment including Consideration of known or suspected instances of non-compliance with laws and regulation and fraud. Considering the internal controls in place to n)itigate risks of fralld and non-compliance with laws and regulations. Identifying and testing journals and the rationale behind significant or unusual tran511Ction8, in particular journal entrics posted with unusual account combinations, postings by unusual users or with unusual descriptions- Challenging assumptions and JUdgellnts made by management in their critical accounting cstimates. Owing to the inherent limitations of an audit. there is an unavoidable risk that we may not have deteclcd some material misstatements in the financial statements. even though we have propcrly planned and perforn]ed our audit in accordance with auditing 8tandurds. For example, the further removed non-compliance with laws and regulations (irregularitics) is from the events and transactions rcflccted in the financial Siatements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition. as with any audit, there remains a higher risk of non-detection of irregularities as these may involve ollusion. forgery, intentional omissions, misrepresentations. or th¢ override of internal controls. We are not responsible for preventing Don-compliance and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAS (UK). we ¢xercise professional judgement and nuintain professionaI srepticism Ihroughoul the audit. We also.. idenlify and asses5 the risks of material misstatement of the financial statements. whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suffi¢i¢nt 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, inten¢ional omissions, misrepresentations, or the override of internal control. obiain an understanding of int¢rnal control relevant to (he audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the company's internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures mf¢de by the direciors. conclude on the appropriateness of the directors, use of the going concern basis of accounting and, based on the audit evidence obtained. whether a material uncertainty exists related to evcnts or conditions that May cast significant doubt on the charitable con]p&ny's ability to continue as a going concern. if we conclude that a material unccrtainty exists, wc are required to draw attention in our auditovs report to the rclaied disclosures in the financial statemcnts- or, if such disclosures are inadcquatc, to modify our opinion. Our conclusions are bascd on the audit evidencc obtained up lo the datc of our auditor's report. Howcvei. future events or conditions may cause the charitable company to cease to continue as a going concern. evaluate the overall picsentation, structure and content of the financial .statements. including the disclosures. and whethcr the financial statements replrscnt the underlying tran.sactions and events in a manner that achievcs fair picsentation. We con]municate with those charged with governance regarding. among other matters, the planned scope and timing of the audit and significant audit fjndings, including any significant deficiencies in internal control that we identify during our audit. Page 14
DEVELOPING HEALTHY COMMUNrrIES (DHC) LIMITED (A company limlted by guarantee) Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other pury)ose. To the fullest extent perniitted by law. w¢ do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work. for this report, or for the opinions we have formed. Gerard Murray Senior Statutory Audltor For and on behalf of McDaid Mccullough Moore Chartered Accountants and Statutory Audltor 28132 Clarendon Street Derry BT48 7HD 12 October 2023 Page 15