THE ROYAL BELFAST ACADEMICAL INSTITUTION INDEPENDENT AUDITOR'S REPORTTO THE BOARD OF GOVERNORS OF THE ROYAL BELFAST ACADEMICAL INSTITUTION Opinion We have audited the financial statements of The Royal Belfast Academical Institution {the 'School') for the year ended 31st March 2023 which comprise the Statement of Financial Activities, the Income and Expenditure Accounts, the Balance Sheet, the Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation 15 applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" {United Kingdom Generally Accepted Accounting Practice). In our opinion: The financlal statements give a true and fair view of the state of the School's affairs st as at 31 March 2023 and of its incomin8 resources and application of resources, for the year then ended. The financial statements have been properly prepared in accordance wlth the standards of accounting set by the Department of Education for Voluntary Grammar School's Statement of Accounts and in accordance with United Kingdom Generally Accepted Accounting Practice; Proper accounting records have been kept by the School throughout the period; The School's whole system of internal control in the relevant financial period was such as to comply with the obligations placed on the Board of Governors by the Department of Education and we have not identified any significant weaknesses; Grants made by the Department of Education and funds from other sources reported in the relevant financial period have been applied in accordance with the Financial Memorandum and any other terms and requirements attached to them.. Pension deductions made by the School in the relevant financial period were calculated correctly and have been paid over as required: and The financial statements have been prepared in accordance with applicable law, guidance issued by the Department of Education and International Standards on Auditing {UK). Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the School in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'5 Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 17
THE ROYAL BELFAST ACADEMICAL INSTITUTION INDEPENDENT AUDITOR'S REPORTTO THE BOARD OF GOVERNORS OF THE ROYAL BELFAST ACADEMICAL INSTITUTION Conclusions relatlng to going concern In auditing the financial statements, we have concluded that the Governors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast Sl8nificant doubt on the School's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report. Other informatlon The Governors are responsible for the other information. The other information comprises the information included In the annual report, other than the financial statements and our auditorfs report thereon. Our oplnion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any 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 information is materially inconsistent with the financial staternents or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the 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. We have nothing to report in this regard. Matters on which we are required to report by exceptlon We have nothing to report in respect of the following matters where legislation requires us to report to you if, in our opinion: the information given in the Governors, Annual Report is inconsistent in any material respect with the financial statements; or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. 18
THE ROYAL BELFAST ACADEMICAL INSTrruTION INDEPENDENT AUDITOWS REPORTTOTHE BOARD OF GOVERNORS OFTHE ROYAL BELFAST ACADEMICAL INSTITUTION Responsibilitles of Governors As explained more fully in the Governors, Responsibilities Statement set out on page 15, the Governors 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 Governors determine 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 Governors are responsible for assessing the School'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 Governors either intend to liquidate the School or to cease operations, or have no realistic alternative but to do so. Auditorfs responslbllltles for the audlt of the financial statements Our objectives are to obtain reasonable assurance about whether the flnanclal statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a hi8h level of assurance 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. Irregularities, Including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of Irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Extent to which the audit was consldered capable of detecting irregularities, including fraud The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through 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 detection of fraud rests with both management and those charged with governance of the School. 19
THE ROYAL BELFAST ACADEMICAL INSTITITfioN INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF GOVERNORS OF THE ROYAL BELFAST ACADEMICAL INSTITUTION Our approach was as follows: We obtained an understanding of the legal and regulatory requirements applicable to the School and considered that the most significant to be the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021. We obtained an understanding of how the School complies with these requirements by discussions with management and those charged with governance. We assessed the risk of materlal misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. We inquired of management and those charged with governance a5 to any known instances of non-compliance or suspected non-compliance with laws and regulations. Based on this understanding. we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of rnanagement and those charged with governance and obtaining additional corroborative evidence as required. 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 team included: We obtained an understanding of the School's Internal control systems in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the School's internal control. We obtained an understanding of how the School complles with relevant laws and regulations 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 instance5 of non-compliance with laws and regulations. Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material mi55tatement due to fraud. 20
THE ROYAL BELFAST ACADEMICAL INSTITUTION INDEPENDENT AUDITOWS REPORTTO THE BOARD OF GOVERNORS OFTHE ROYAL BELFAST ACADEMICAL INSTITUTION Reviewing minutes of meetings of those charged with governance. Reviewing internal audit reports. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the rationale of significant transactions that are unusual or outside the normal course of business. We communlcated 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 concealment through collusion, forgery, intentional omissions, misrepresentations or the override of internal control. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http://www.frc.org.uk/auditorsresponsibilties. This description forms part of our auditor's report. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant findings, including any si8nificant deficiencies in internal control that we Identify during our audit. 21
THE ROYAL BELFAST ACADEMICAL INSTITLMON INDEPENDEKfAUDITOR'S REPORTTO THE BOARD OF GOVERNORS OFTHE ROYAL BELFAST ACADEMICAL INSTITUTION Use of our report This report Is made solely to the School's Governors, as a body. Our audlt work has been undertaken so that we might state to the School's Governors those matters we are required to state to them in an auditorfs 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 School and its Governors as a body, for our audit work, for this report, or for the opinions we have formed. Moore Nl LLP Senlor Statutory Audltor 4th Floor- Done8all House 7 Donegall Square North Belfast Northern Ireland BTI 5GB Date: I Moore (Nl) LLP is ellgible to act as an auditor in terms of sectlon 65 of the Charitles Act {Nl) 2008 22