By Hector Daniels,2014-05-19 02:50
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Subject: Worcestershire Acute Hospitals Charitable Trust Annual

    Accounts, Annual Report and Governance Report

    Report by: Graham Bennett, Interim Director of Finance

    Purpose: To update the Trust Board on the outcome of the

    External Audit review of the Charitable Trust

Recommendation: The Board is asked to:

    ? Note and receive the Annual Governance Report

    ? Approve the Action Plan

    ? Consider the going concern status of the Charity

    ? Adopt the Charitable Trust Annual Accounts for


    ? Approve the Annual Report

1. Background

1.1 The Worcestershire Acute Hospitals NHS Trust Charitable Accounts

    have been prepared by the Trustees under section 98(2) of the National

    Health Service Act 1977 (as amended) in the forms which the Secretary

    of State has, with the approval of Treasury, directed.

    1.2 The accounts have been subject to an external audit review carried out

     by the Audit Commission.

    1.3 The pre-audit draft Accounts and Annual Report were completed in late

     June 2007. The Accounts have subsequently been audited and an

     unqualified audit opinion has been issued by the external auditor.

    1.4 Copies of the Accounts (Appendix 1), Annual Report (Appendix 2),

     Annual Governance Report (Appendix 3) including the Management

     Representation Letter (Appendix 4) are attached to this report. The

    Management Representation Letter was formally adopted and approved

    at the Donated Funds Committee meeting on Thursday 20 September


    2. External Audit Findings

    Charitable Trust Funds Annual Accounts Report Page 1 of 3


    2.1 The Trust has received the District Auditor’s Annual Governance

    Report. The scope of this report is to:

    ? review and report on, to the extent required by the relevant

    legislation, the Charity’s financial statements

    ? confirm that the Trustees Annual Report is consistent with the

    financial statements

2.2 The purpose of the report is to:

     ? reach a mutual understanding of the scope of the audit and the

     respective responsibilities of the Auditor and the Trustees

     ? share information to assist both the auditor and the Trustees to

     fulfil their respective responsibilities

     ? summarise the significant findings and conclusions arising from

     the work and to provide the Trustees with any recommendations

     for improvement arising from the audit process

2.3 The Auditor found a small number of misstatements in the draft

     accounts which have now been amended, and which are therefore now

     reflected correctly in the Accounts. The Auditor has confirmed that there

     are no unadjusted misstatements which need to be brought to the

     attention of directors.

2.4 The Auditor stated that there were no material weaknesses in systems

     of accounting and financial control. All observations made by the auditor

     regarding both accounting practices and systems of Internal Control

     have been included within the Action Plan at Appendix 1 within the

     Annual Governance Report.

    2.5 Financial Reporting Standard 18 requires the Trustees, when preparing

     the financial statements, to assess whether there are significant doubts

     as to the charity’s ability to continue as a going concern. The auditor

     requires the Trustees need to confirm that they have considered the

     going concern assumption when adopting the accounts.

    2.6 The Donated Funds Committee considered the going concern principle

     at its meeting on 20 September 2007 and confirmed its view that the

     charity is a going concern.

3. External Audit Opinion

    Charitable Trust Funds Annual Accounts Report Page 2 of 3


3.1 The District Auditor has issued an unqualified audit opinion confirming

    that “the financial statements give a true and fair view in accordance

    with United Kingdom Generally Accepted Accounting Practice, of the ststate of the charity’s affairs as at 31 March 2007 and of its incoming

    resources and application of resources for the year then ended and

    have been properly prepared in accordance with the Charities Act


4. Conclusion

4.1 It is reassuring that the Auditor has given the Charity’s accounts an

     unqualified audit opinion.

5. Recommendations

5.1 The Trust Board is asked to:

     ? Note and receive the Annual Governance Report

    ? Approve the Action Plan.

    ? Consider the going concern status of the Charity

    ? Adopt the Charitable Trust Annual Accounts 2006/07.

    ? Approve the Annual Report.

Graham Bennett

    Interim Director of Finance

    Charitable Trust Funds Annual Accounts Report Page 3 of 3

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