Your Councillors


Appendix B - Letter of Representation

COBTREE MANOR ESTATE CHARITY

COMMITTEE

 

 

UHY Hacker Young,

Thames House,

Roman Square,

Sittingbourne,

Kent.  ME10 4BJ

 

 

Dear Sirs,

 

This representation letter is provided in connection with your audit of the financial statements of Cobtree Manor Estate for the year ended 31 March 2015.  We note that your audit was performed for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the result and financial position of Cobtree Manor Estate in accordance with the UK Generally Accepted Accounting Practice financial reporting framework.

 

We confirm to the best of our knowledge and belief, the following representations made to you in connection with your audit of this entity’s financial statements:-

 

1.           General

 

We acknowledge as trustees our responsibility under the Charities Act 2011 for preparing financial statements, which give a true and fair view of the financial position of Cobtree Manor Estate as of 31 March 2015, and of the result of its operations for the year then ended, and for making accurate representations to you. The financial statements are free of material misstatements, including omissions. We confirm that we have held prior discussion with you to ensure that there is complete agreement on the meaning of all confirmations that we are making to you.

 

2.           We have made available to you all the accounting records necessary for your audit, including books of account, supporting documentation and all minutes of meetings of shareholders and the board of trustees. All the entity's transactions have been reflected in the accounting records produced to you. We have not withheld any information, the knowledge of which could cause you to take a materially different view in your report.

 

3.           All relevant access to persons within the charity has been made available to you for the purpose of your audit.

 

4.           We acknowledge our responsibility for the design and implementation of internal control procedures to prevent and detect fraud and error, and have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.

 

 

 

 

 

 

5.           We are not aware of any irregularities involving either management, employees with a significant role in internal control, former employees, analysts, regulators or anyone else where those irregularities could have a material effect on the financial statements.

 

6.           Non-audit services

 

               We understand that, under the Auditing Practices Board Ethical Standards, the provision of audit and non-audit services to us by yourselves gives rise to a potential threat to independence. This includes the preparation of the statutory financial statements and corporation tax computations. We confirm that you have explained to us the threats and the safeguards that you have put in place to address the potential self- review threat.

              

               We confirm that we have discussed the draft accounts and final journals and agree to inclusion of the (attached) journals in the final accounts (see appendix I).

 

7.           Audit Adjustments

 

We confirm that all audit adjustments identified have been adjusted for due to their material nature (see above).

 

8.           Commitments, contingencies and liabilities

 

We have recorded or disclosed, as appropriate, all liabilities, both actual and contingent, and have disclosed in the financial statements all guarantees that we have given to third parties. We do not know of any substantial liabilities, contingent liabilities of capital commitments, of a material amount, other than those disclosed in the financial statements.

 

9.           Litigation

 

          There is no litigation in progress or pending (other than to recover debts).

 

10.        Transactions and arrangements with officers and related parties

 

We confirm that we are aware that a related party of the charity is a person or organisation which either (directly or indirectly) controls, has joint control of, or significantly influences the charity or vice versa and as a result will include: trustees/directors, other key management, close family and other business interests of the previous.

                                 

11.        We confirm that all related party relationships and transactions have been accounted for and disclosed in accordance with the applicable financial reporting framework.

                                          

12.        Post Balance Sheet Events

 

No events or transactions have occurred, or are pending, which could either have a material effect on the financial statements or which are of such significance in relation to the entity’s affairs that they should either require adjustment or be disclosed in the financial statements, or notes thereto, in

 

order to avoid giving a misleading view of the entity’s financial position.

13.        Laws and Regulations

 

We are not aware of any events which involve possible or actual instances of non-compliance with those laws and regulations which provide a legal framework within which the entity conducts its business. The entity has complied with all aspects of contractual agreements and the requirements of regulatory authorities that, in either case, could, in the event of non-compliance, have a material effect on the financial statements.

 

14.        Future Plans

 

We have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.

 

15.        Going Concern

 

We confirm that having considered our expectations, intentions and projections for the twelve months following the date of this letter, and the availability of unrestricted reserves, we are not aware of any matters that would suggest that the charity will not continue as a going concern.

 

16.        Accounting estimates

 

Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.

 

17.        Maidstone Borough Council creditor

 

We confirm that the year-end balance owing to Maidstone Borough Council is £485,875.

 

18.        Fixed assets

 

We confirm that the land and buildings shown in the accounts of £3,523,985 are owned by the charity.

                                                         

We confirm to the best of our knowledge and belief that the above representations are made on the basis of enquiries of management and staff with relevant knowledge and experience (and, where

appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the above representations to you.

         

Yours faithfully,

 

 

………………………………    

Councillor

 

………………………………     

Date: 

 

APPENDIX I – AGREED ADJUSTMENTS    INCLUDED IN THE FINANCIAL STATEMENTS

 

The following adjustments were discussed and agreed with you, and the impact on net income is shown below:

 

   

Effect on brought forward funds

£

Prior year adjustments

Certain qualifying fixed assets not capitalised in prior periods

665,946

Income incorrectly included due to misunderstanding of certain accounting treatments

(463,145)

Incorrect treatment of investment assets

509,304

Other historical differences re: opening balances of funds at 1 April 2013

8,429

 

Total impact of prior year adjustments on funds brought forward at 1.4.14

720,534

Other adjustments agreed

Effect on 2015 net income

£

£

Removal of previously accumulated surpluses incorrectly included in other income

93,526

(93,526)

Correcting of capital expenditure incorrectly included in Income & Expenditure

296,508

296,508

Correcting gains/(losses) on investment assets

3,766

(3,766)

Additional capital accrual identified

50,781

-

199,216

Reconciliation between draft accounts presented for audit and final accounts

Net surplus per original accounts

286,134

UHY adjustments above

199,216

Net movement in funds per Statement of Financial Activities

485,350