MAIDSTONE BOROUGH COUNCIL

COBTREE MANOR ESTATE COMMITTEE

14^TH APRIL 2014

REPORT OF THE HEAD OF FINANCE & RESOURCES

1              APPOINTMENT OF EXTERNAL AUDITORS                                                                                                       

1.1        Issue for Decision                                                                                                          

1.1.1   To consider the appointment of external auditors for the Trust for the financial years 2013/14 and 2014/15.                                                                                        

1.2        Recommendation of the Head of Finance & Resources                                                    

1.2.1    That the Committee reappoints King & Taylor as external auditors for the financial years 2013/14 and 2014/15.

1.3        Reasons for Recommendation                                                                     

1.3.1   The Committee had previously agreed the appointment of King & Taylor for the financial years 2011/12 and 2012/13, so it is now necessary to reappoint auditors.                                                                                                  

1.3.2   King & Taylor have been the auditors for a number of years, and there is a good working relationship between their staff and Council staff. In addition King & Taylor are experienced auditors of charity accounts and have a good working knowledge of the Cobtree Trust from their previous audit work.                                                                                                                    

1.4        Alternative Actions and Why Not Recommended                                          

1.4.1   The Committee could seek to appoint a different auditor, however for the reasons outlined at 1.3.2 it is recommended that King & Taylor continue in their current role. In addition the Charity Commission guidance on Independent Examination of Charity Accounts does not appear to place any requirement upon Trustees to change auditors after any specified time period.                                                                                                                                                                                                         

1.5        Impact on the Charity’s Objectives                                                              

1.5.1   An independent examination of the accounts provides assurance to Trustees and stakeholders of the financial standing of the Trust.                                                                                                                                     

1.6        Risk Management                                                                                                                     

1.6.1   Assurance of the quality of the financial information is a key element of risk management.                                                                                                                                       

1.7        Other Implications                                                                                                                                                                                       

1.8                  Financial Implications                                                                                  

1.8.1    A fee is payable to the Auditors for their services. In 2012/13 this was £4,320.