Audit Matters

Three matters to consider:

Annual Management Letter.

External Auditor Performance and Fees.

Change of Audit Firm for 2012/13 audit.

Annual Management Letter

The Annual Management Letter is for the information of the Council of Governors. No other action required.

Summarises the work and findings from the audit:Unqualified opinion on the 2012 financial statements;Unqualified certificate for value for money;Limited assurance report on the 2012 Quality Report.

Reviewed by the Audit Committee on July 11, 2012.

Approved by the Board on July 24, 2012.

External Auditor Performance and Fees

Performance and fees have been reviewed by the Audit Committee.

Audit Committee has concluded that: The auditor’s performance was of a sufficiently high standard; and The fees charged were reasonable.

No further action required from the Council of Governors.

Change of Audit Firm for 2012/13

Audit Commission audit practice to close.

In the North-East, the Commission’s audit resources have been taken into Mazars.

Council of Governors have already approved that Mazars be engaged for the 2012/13 audit.

Change of Audit Firm for 2012/13

Resignation letter from Cameron Waddell of the Audit Commission reviewed by the Audit Committee in September.

No circumstances surrounding the resignation required to be brought to the attention of the Council of Governors.

Audit Committee recommend acceptance of the resignation by the Council of Governors.

Appointment of New Auditors

Engagement letter from Mazars reviewed by the Audit Committee in September.

Standard type of engagement letter setting out:•Responsibilities of the Trust and the Auditors;•Scope of Work and Nature of Reports;•Communication and Co-operation;•Fees.

Audit Committee recommend acceptance of the engagement letter by the Council of Governors.