Registered number: 07685830
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
COMPANY INFORMATION
Directors Mrs CJ Green (Chair)
Mr D Ellesmere
Mrs C Cullens
Mr J Giffiths
Mr M Hicks
Mr P Joyner
Mr D Keen
Mrs S Chapman - Allen (resigned 23 September 2021)
Mr S Oliver
Mrs C Peasgood
Mr A Proctor
Mr J Reynolds
Mrs S Ruddock
Mr A Waters
Prof H Langton
Cllr S Dark (appointed 23 September 2021)
Ms J Wheeler
Dr T Whitley (resigned 22 September 2021)
Mrs K Atkinson
Registered numbe
r
07685830
Registered office Mills & Reeve LLP
1 St James Court
Whitefriars
Norwich
Norfolk
NR3 1RU
Independent auditors Price Bailey LLP
Chartered Accountants & Statutory Auditors
A
nglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norwich
Norfolk
NR7 0HR
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
CONTENTS
Page
Group Strategic Report 1 - 4
Directors' Report 5 - 7
Independent Auditors' Report 8 - 11
Consolidated Statement of Comprehensive Income 12
Consolidated Balance Sheet 13
Company Balance Sheet 14
Consolidated Statement of Cash Flows 15
Consolidated Analysis of Net Debt 16
Notes to the Financial Statements 17 - 37
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
Introduction
New Anglia Local Enterprise Partnership Ltd (LEP), is a company bringing together business, local authority and
education leaders, collaborating to grow the area’s economy, create jobs and improve productivity.
Aims and Objectives
Driving business growth and enterprise to support clean, inclusive growth across the region is the core goal of
New Anglia LEP and during 2021-22 we launched a new Economic Strategy for Norfolk and Suffolk.
This document is the blueprint for how local authorities, businesses large and small, business support
organisations, Voluntary Community and Social Enterprise (VCSE) organisations, colleges, universities,
independent training providers and the LEP will work together, aligning relevant actions and investment, to build
a cleaner, stronger and more productive economy from which everyone benefits. The actions set out in it will
help lead us out of these challenging circumstances and deliver on our region’s potential.
One of the ways we deliver and facilitate growth is through our Growth Deal with Government. Under the Growth
Deal the LEP was awarded £290m in funding to support projects and programmes that will boost skills, drive
innovation, provide targeted business support and improve transport and infrastructure. Following this, in
summer 2020, the LEP was awarded £32.1m through the Government’s Getting Building Fund to further support
local growth and excellent progress is already being made on projects that will regenerate areas in need of
investment.
We are also working hard to attract inward investment to the area and promoting its strengths through the
Norfolk & Suffolk Unlimited brand. A series of videos and articles highlighting our key sectors and centres of
excellence, and the investment potential the region offers are being published through a proactive online
marketing campaign.
Core programmes and projects
Our Growing Business Fund Panel held its last meeting in January 2022 after awarding grants totalling more
than £32.5m to 312 projects over its lifetime. Its first ever recipient in March 2013 was Traditional Norfolk Poultry
at Shropham, which was awarded £55,899. Since then, it has awarded £32.5m in grants, generating £250m in
match funding and creating 3,460 jobs.
Launched in response to the Covid pandemic, the Business Resilience and Recovery Scheme also awarded its
last grant in January 2022. It provided grants totalling £5,674,216 to 145 businesses, supporting short-term and
longer-term diversifications for companies recovering from the crisis.
The Small Grant Scheme and Growth Through Innovation Fund continue to support business growth projects
across the region, while New Anglia Growth Hub provides a free and impartial service to businesses, particularly
SMEs.
Our Space to Innovate Enterprise Zone, which covers 10 sites across Norfolk and Suffolk, marked its fifth
anniversary in 2021, and the LEP unveiled a five-year plan for all its Enterprise Zone sites to create 3,300 jobs
and 200 new businesses.
Several of the major projects supported by our Growing Places Fund were officially opened over the past 12
months. These included the new visitor centre at Carlton Marshes nature reserve near Lowestoft, a 17-metre-
high viewing tower at Sutton Hoo in Suffolk, and the £19m archive centre at The Hold on Ipswich’s Waterfront.
Our Growth Deal with Government continued to deliver facilities that will ensure we have the skills we need in
our key sectors. City College Norwich celebrated the
official opening of its Digital Technology Factory, while the
University of Suffolk unveiled its new Digi-Tech Centre at Adastral Park, and Suffolk New College opened its
Tech Campus. A ribbon was also cut at Productivity East, a £7.4m regional hub for engineering, technology and
management on the campus of the University of East Anglia in Norwich. Meanwhile, work continues on the Gull
Wing bridge in Lowestoft and the Great Yarmouth Third River Crossing, both of which will significantly improve
connectivity for these towns and help unlock them for investment.
Page 1
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Regeneration projects which benefited from the Getting Building Fund allocation are underway. A topping out
ceremony was held at the new Marina Centre on Great Yarmouth seafront in October 2021, which is due to open
in summer 2022. An Integrated Care Academy, a unique alliance between the University of Suffolk, NHS
Integrated Care System and Suffolk County Council, is also under construction. The facility will be dedicated to
the promotion of integrated care among the student body, practice partners and the wider community.
Our Enterprise Adviser Network continues to connect businesses with schools and colleges across Norfolk and
Suffolk.
Work to develop Norfolk and Suffolk’s key sectors continues through our industry councils for agri-food,
ICT/digital and all energy and our inward investment team promotes these and other areas of our economy to
businesses in the UK and the rest of the world.
Key Performance Indicators
LEP projects are monitored against a series of key performance indicators (KPIs). These include performance
against spend and the delivery of agreed outputs. Each programme reports against KPIs in a performance report
which can be found on the LEP’s website.
The LEP’s internal KPIs cover finances and performance against the LEP’s delivery plan.
KPIs include financial and output performance against annual targets for our key projects including Growth Deal,
Enterprise Zone and Growth Programme.
Performance and financial overview
Each year the LEP is subject to an Annual Performance Review (APR) by Government which assesses LEP
performance across three themes of Governance, Delivery and Strategic impact. The performance assessment
for the 2021/22 APR confirmed the LEP had met the requirements for governance and strategic impact.
Concerns were expressed around delivery due to extensive planned use of Freedoms and Flexibilities at the
time of the r
eview. Key indicators that were met include LEP compliance against the Local Assurance
Framework, publishing a governance assurance statement on the status of governance and transparency,
developing with partners a new Economic Strategy and successfully bidding into the Community Renewal Fund.
Each member of the LEP team has their own individual objectives which form part of the LEP’s overall delivery
plan. The LEP’s Working Well initiative continues to support the team’s health and wellbeing.
The financial position of the LEP has changed from achieving a £19,457k surplus to incurring a £26,556k loss.
Last year the LEP received additional Government monies which when combined with delays on some large
infrastructure assets meant that funds were committed to projects but were not claimed. It was anticipated that
this year a significant loss would be incurred as projects were able to draw down remaining funds ahead of the
Government deadline of 31 March 2022.
The LEP received £16.05m as part of its final Getting Building Fund allocation from Government for a wide-
ranging package of projects that will support the local economy. The Getting Building Fund concluded on 31
March 2022 so focus during the year has been on ensuring that all funding was defrayed to existing projects and
through LEP sub-programmes by the year end.
The LEP was awarded a total of £290million by Government to deliver the Growth Deal over a six-year period.
The Growth Deal
has also effectively ended and so 2021/22 was spent managing rolled-over expenditure
already allocated to approved projects and through LEP sub-programmes.
Monitoring of Getting Building Fund and Growth Deal projects will continue until all claim and monitoring
information is received and project outputs are achieved, in accordance with the individual Grant Offer Letters. In
some cases outputs will not be achieved until a number of years after the full grant for the project has been
drawn down.
Page 2
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
The majority of the LEP's funding is secured from Government, both core funding and project funding. Other
funding is secured from the European Union, from business rates generated on the LEP’s Enterprise Zone sites
and through contributions from local authority partners.
Political and economic climate
The LEP has been proud to play such a significant role in the economic fightback following the pandemic,
providing a lifeline of support to businesses, and we remain at the forefront of the recovery phase.
New Anglia Growth Hub helped businesses access grants totalling almost £4m in 2021. The free and impartial
service delivered as part of the LEP’s business growth programme received more than 3,000 phone calls and
2,650 emails, underlining the significant role played by its busy team in helping mitigate the impact of the virus on
local firms.
The combined impact of Brexit, the pandemic and the Ukrainian conflict continues to affect businesses and our
websites, newsletters and programme of events keep them up to date with the latest Government advice and
information about grants, loans and other support that is available.
The Government has confirmed a continuing role for the functions of Local Enterprise Partnerships following the
conclusion of its review. For New Anglia LEP this future role forms part of the devolution negotiations over county
deals taking place between Norfolk and Suffolk County Councils with Government.
Environmental reporting
New Anglia LEP is not required to complete environmental reporting as its energy consumption is less than
40,000kWh. However the organisation has an active Clean Growth working group, bringing together staff to look
at priority actions around reducing the LEP’s carbon footprint. This has included reducing printing, introducing a
cycle to work scheme and work with our pension provider to ensure our investments are made in sustainable
projects. This fits within the LEP’s commitment to delivering clean growth for the region and the establishment of
its new Clean Growth Task Force.
New Anglia Capital Ltd
New Anglia Capital Ltd (NAC) is a wholly owned subsidiary of New Anglia Local Enterprise Partnership.
New Anglia LEP has established a co-investment fund to be managed by NAC to make risk-capital co-
investments alongside entrepreneurs in high growth-potential companies based in Norfolk and Suffolk.
The principle aims of NAC include:
• Establishing a
network of business entrepreneurs and angel investors to provide a pool of risk-capital and
business finance that can support start-ups, innovative business ideas and high growth companies.
• Identifying and providing a pipeline of investment opportunities for risk-capital investment, co-investing with
angel investors and entrepreneurs that meet the company criteria, including creating new jobs.
• Investment opportunities should also promote the wider objectives of New Anglia LEP e.g. support for sectors
including engineering, life sciences, agri-tech, health, energy, ICT and digital tech.
Risks to New Anglia Capital include identifying and maintaining an effective level of investors in the region and
the risk of failure of individual companies in which NAC has an equity share.
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NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Directors' statement of compliance with duty to promote the success of the Group
Section 172(1) Statement
New Anglia Local Enterprise Partnership works with businesses, local authority partners and education
institutions to drive growth and enterprise in Norfolk and Suffolk. The LEP is transforming the economy by
securing funds from government to help businesses grow, through the delivery of ambitious programmes to
ensure that businesses have the funding, support, skills, and infrastructure needed to flourish.
Members of New Anglia LEP’s Board operate with the aim of ensuring that the organisation maintains its
reputation for high standards of business conduct and good governance. The Board considers and understands
the long-term effect of its decisions on the regional business community, our stakeholders and employees.
The LEP’s aims and objectives are set out in its current Delivery Plan. The Non-Executive Director Agreement
outlines the high standards of ethical and professional conduct expected of Board members in ensuring that the
LEP’s values and obligations to stakeholders – our public sector partners, local businesses, further and higher
education partners and Government - are met. It states that Board members will provide entrepreneurial
leadership within a framework of prudent and effective controls which enable risk to be assessed and managed.
The Standards of Conduct Policy sets out the principles by which Board members and employees are expected
to adhere to the highest standards of governance and propriety. It uses the Nolan Principles as the core of the
code of conduct, following the guidelines established by the Committee on Standards in Public Life, which
provides independent advice to the prime minister on standards of conduct of holders of all public office. We
hold monthly board meetings, regular meetings of our sub boards, committees and sector groups and weekly
updates for our employees.
The LEP’s Local Assurance Framework sets out how its Board is formed and governed, how decisions are made
and how
programmes are funded and managed. The Assurance Framework also provides the Government with
assurance that the LEP is operating correctly.
As well as investing in capital and revenue projects across the region, the LEP supports local procurement
where possible. The LEP has committed to reducing its carbon footprint, by reducing printing, encouraging fewer
car journeys / car sharing and implementing agile working for its staff.
Further information about the LEP’s governance, including details of its Board members, can be found on the
LEP website at www.newanglia.co.uk
This report was approved by the board on 22 September 2022 and signed on its behal
f
.
Mrs CJ Green (Chair)
Director
Page 4
C J Green (Sep 22, 2022, 3:49pm)
Cj Green
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The directors present their report and the financial statements for the year ended 31 March 2022.
Directors' responsibilities statement
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the
consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the
directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom
A
ccounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting
Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under compan
y
law the directors must not approve the financial statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
! select suitable accounting policies for the Group's financial statements and then apply them consistently;
! make
j
udgments and accounting estimates that are reasonable and prudent;
! state whether applicable UK Accounting Standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
! prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the Company's transactions and disclose with reasonable accuracy at any time the financial position of the
Company and the Group and to enable them to ensure that the financial statements comply with the Companies
A
ct 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for
taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The deficit for the year, after taxation, amounted to £26,555,859 (2021 - surplus £19,457,421).
Page 5
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Directors
The directors who served during the year were:
Mrs CJ Green (Chair)
Mr D Ellesmere
Mrs C Cullens
Mr J Giffiths
Mr M Hicks
Mr P Joyner
Mr D Keen
Mrs S Chapman - Allen (resigned 23 September 2021)
Mr S Oliver
Mrs C Peasgood
Mr A Proctor
Mr J Reynolds
Mrs S Ruddock
Mr A Waters
Prof H Langton
Cllr S Dark (appointed 23 September 2021)
Ms J Wheeler
Dr T Whitley (resigned 22 September 2021)
Mrs K Atkinson
Future developments
Since being established over ten years ago, LEPs have been responsible for delivering economic growth in the
regions. A review of LEPs was announced in the 2021 budget to make sure LEPs have a clear mandate for
supporting and representing businesses. This review has recently concluded and a plan to integrate LEPs more
closely with democratic institutions has been announced. For New Anglia LEP this future role forms part of the
devolution negotiations over county deals taking place independently between Norfolk and Suffolk County
Councils with Government.
Until devolved institutions exist in an area, LEPs will be supported as they are currently constituted, subject to
future funding decisions. However, uncertainty exists as to the timeline of these county deal negotiations and
whether the Norfolk and Suffolk timelines will align.
Greenhouse gas emissions, energy consumption and energy efficiency action
The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and
energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
! so far as the director is aware, there is no relevant audit information of which the Company and the
Group's auditors are unaware, and
! the director has taken all the steps that ought to have been taken as a director in order to be aware of any
relevant audit information and to establish that the Company and the Group's auditors are aware of that
information.
Page 6
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Post balance sheet events
There have been no significant events affecting the Group since the year end.
Auditors
The auditors, Price Bailey LLP, will be proposed for reappointment in accordance with section 485 of the
Companies Act 2006.
This report was approved by the board on 22 September 2022 and signed on its behalf.
Mrs CJ Green (Chair)
Director
Page 7
C J Green (Sep 22, 2022, 3:49pm)
Cj Green
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEW ANGLIA LOCAL ENTERPRISE
PARTNERSHIP LIMITED
Opinion
We have audited the financial statements of New Anglia Local Enterprise Partnership Limited (the 'parent
Company') and its subsidiaries (the 'Group') for the year ended 31 March 2022, which comprise the Group
Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash
Flows and the related notes, 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 Financial Reporting Standard applicable in the UK
and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
! give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March
2022 and of the Group's loss 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 Companies Act 2006.
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
A
uditors' responsibilities for the audit
of the financial statements section of our report. We are independent of the Group in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the United Kingdom, including the
Financial Reporting Council's Ethical Standard and we have fulfilled our other 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 opinion.
Material uncertainty related to going concern
The Government is currently carrying out a review of LEPs to make sure that they have a clear mandate for
supporting and representing businesses, with a view to devolving LEP activities into local authority hubs. The
pathway to implement this devolution has not yet been confirmed, however core funding is available to New
Anglia LEP for the year to March 2023. The ongoing review of LEP structure and uncertainty as to the future of
LEP structures and funding have created and continue to create uncertainty for the LEP. As stated in note 2.3,
these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material
uncertainty exists that may cast significant doubt on the Group's and parent Company's ability to continue as a
going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of
accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors'
assessment of the Group's ability to continue to adopt the going concern basis of accounting included a review of
funding secured for the next financial year, alongside a consideration of the LEP's attempt to diversify its future
reveue streams by way of investment income should funding received by the government no longer be
forthcoming.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
Page 8
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEW ANGLIA LOCAL ENTERPRISE
PARTNERSHIP LIMITED (CONTINUED)
Other information
The other information comprises the information included in the
A
nnual Report other than the financial
statements and our
uditors' Report thereon. The directors are responsible for the other information contained
within the
A
nnual Report. Our opinion 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. 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 knowledge obtained in the course of 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 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
! the information given in the Group Strategic Report and the Directors' Report for the financial year for
which the financial statements are prepared is consistent with the financial statements; and
! the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable
legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent Compan
y
and its environment
obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report
or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
! adequate accounting records have not been kept by the parent Company, or returns adequate for our
audit have not been received from branches not visited by us; or
! the parent Company financial statements are not in agreement with the accounting records and returns; or
! certain disclosures of directors' remuneration specified by law are not made; or
! we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 5, the directors 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 directors 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 directors are responsible for assessing the Group's and the parent
Compan
y
'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 directors either intend to liquidate the Group or the
parent Compan
y
or to cease operations, or have no realistic alternative but to do so.
Page 9
NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP LIMITED
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEW ANGLIA LOCAL ENTERPRISE
PARTNERSHIP LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain 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
A
uditors' Report that includes our
opinion. Reasonable assurance is a high 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 Group 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:
- Management override: We reviewed systems and procedures to identify potential areas of management
override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness,
and evaluating the business rationale of significant transactions to identify large or unusual transactions. We
reviewed key authorisation procedures and decision making processes for any unusual or one-off transactions.
- We also reviewed minutes of Director meetings, agreeing the financial statement disclosures to underlying
supporting documentation, and made enquiries of management including those responsible for the key
regulations. We have reviewed the procedures in place for reporting of issues arising to the Board.
- We reviewed a sample of grant and administrative exp
enditure to ensure costs are correctly allocated within
the Statement of Comprehensive Income and reflects valid expenditure approved by the board.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
A
uditors' Report.
Page 10