MAIDSTONE BOROUGH COUNCIL

COBTREE MANOR ESTATE COMMITTEE

13^TH MARCH 2013

REPORT OF THE HEAD OF FINANCE & CUSTOMER SERVICES

1              RESPONSE TO MANAGEMENT LETTER                                                                                                   

1.1        Issue for Decision                                                                                                          

1.1.1   To consider the draft response to the Management Letter issued at the conclusion of the audit of the 2011/12 accounts.                                                                                      

1.2        Recommendation of the Head of Finance & Customer Services                                                 

1.2.1   That the Committee agrees the draft response as set out at Appendix B.                                                                                                  

1.3        Reasons for Recommendation                                                                     

1.3.1   The Trust accounts are audited by King & Taylor, and as part of their final report they issue a Management Letter, which sets out the principal findings of their work and makes recommendations regarding these findings.                                                                                                

1.3.2   At the meeting on 14^th November 2012 the accounts for 2011/12 were approved, but the Committee did ask that the draft response to the Management Letter be brought to the next meeting for their consideration prior to its formal submission.                                                                                 

1.3.3   The Management Letter is attached at Appendix A, with the draft responses set out at Appendix B.                                                                                                                                                                 

1.4        Alternative Actions and Why Not Recommended                                          

1.4.1   The Committee could chose to disregard the recommendations of the Management Letter, but this could have a negative impact upon future audit reports as the recommendations are intended to assist the future operations of the Trust.                                                                                       

1.5        Impact on the Charity’s Objectives                                                              

1.5.1   The Letter assists the Trust in the efficient and effective management of operational activities.                                                                                                             

1.6        Risk Management                                                                                                                     

1.6.1   The Management Letter is issued as part of the annual process of auditing the accounts, and brings to the attention of the Trust areas where improvements could be made.                                                                                                        

1.7        Other Implications                                                                                                                                                                                       

1.8                  Financial Implications                                                                                  

These are detailed in the report.