Decision details

To approve the audited Report and Financial Statements for the financial year 2012/13.

1.  That the Report and Financial Statements for the financial year 2012/13, including the Schedule of Adjustments and the Letter of Representation, all attached as Appendix A to the report of the Head of Finance and Resources, be approved; and

2.  That the proposed response to the Management Letter from the external auditors, as set out in paragraph 1.4.5 of the report of the Head of Finance and Resources and reproduced in italics below, be approved.

In July 2013 the Committee received the un-audited Report and Financial Statements for the financial year 2012/13.

The audited 2012/13 Report and Financial Statements from the external auditors are attached as Appendix A to the report of the Head of Finance and Resources together with the Schedule of Adjustments, details of unadjusted misstatements, the Management Letter and the Letter of Representation.  A revised version of the Balance Sheet was circulated at the meeting, correcting a typographical error which had no impact on the figures overall.

The accounts must be formally approved and signed before they are submitted to the Charity Commission by 31 January 2014.

Accounts 2012/13

Following their examination of the Report and Financial Statements,

King & Taylor, the external auditors, recommended a small number of minor changes, which have now been incorporated into the audited version and are detailed in the Schedule of Adjustments shown as part of Appendix A to the report of the Head of Finance and Resources.

The most significant change was as a consequence of the investment income from the Cobtree Charity Trust Ltd being slightly higher than was estimated in the draft Accounts.

The adjustments mean that the sum due from Maidstone Borough Council to the Charity known as the Cobtree Manor Estate has increased from £82,109 as per the draft Accounts to £85,555.  Following confirmation of this sum, payment has been made.

The Letter of Representation, details of unadjusted misstatements and the Management Letter also form part of Appendix A to the report of the Head of Finance and Resources.

The Letter of Representation seeks confirmation of a number of statements relating to the audit and the information supplied to the external auditors during the course of their audit.

The Management Letter draws attention to points of interest that the external auditors have identified.  Only one point has been raised and the comment on this is as follows:

At present there is no obligation for the accounts to be formally audited by a registered auditor, but Trustees have chosen to have a formal audit. Based on the current thresholds Trustees could still elect to have an independent examination rather than a formal audit, but this point notes that this option may not be available in the future if the statutory thresholds are exceeded.

It is the intention to respond formally to the Management Letter. Previously the draft response has been reported to the Committee for approval, but given that only one point has been raised it is intended to respond as detailed above.

There are no alternative actions as it is a requirement that the Accounts, the Letter of Representation and the Schedule of Adjustments be approved by the Council acting as Corporate Trustee of the Charity known as the Cobtree Manor Estate and signed by the Chairman of the Committee prior to their submission to the Charity Commission.