We confirm, to the best of our knowledge and belief, and having made appropriate enquiries of other officials of the college and other entities included in the group financial statements (‘the group’):
- We acknowledge and have fulfilled our responsibilities, as set out in the terms of the audit engagement, for:
- ensuring that the college / group maintains adequate accounting records and for the preparation and presentation of the financial statements in accordance with the applicable financial reporting framework, in particular the financial statements give a true and fair view in accordance therewith;
- ensuring compliance with the requirements of grant funding agreements and contracts with ESFA and Mayoral Combined Authorities or Greater London Authority in respect of devolved adult education funding] and the funding rules therein, maintaining adequate Individualised Learner Records to support funding claims as part of its adequate accounting records;
- Where registered with the Office for Students ensuring funds from Office for Students or other sources are properly applied for the purposes for which they have been given and in accordance with relevant legislation or terms and conditions attached to them.
- We confirm that the methods, signiﬁcant assumptions and the data used in making accounting estimates and the related disclosures are appropriate in the context of the applicable ﬁnancial reporting framework.
- Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the applicable financial reporting framework. In particular, where required by the applicable financial reporting framework, full disclosure is made in the financial statements of:
- any advances and credits granted by the college to the governors and guarantees of any kind entered into on behalf of the governors;
- the identity of the party which controls and (if different) the party which ultimately controls the college, if any;
- transactions and balances with related parties including:
- the names of the transacting parties;
- the nature of the related party relationship;
- a description of the transactions;
- the amounts of the transactions;
- the amount of outstanding balances and:
- their terms and conditions, including whether they are secured, and the nature of the consideration to be provided in settlement; and
- details of any guarantees given or received;
- provisions for uncollectible receivables related to the amount of outstanding balances;
- the expense recognised during the period in respect of bad or doubtful debts due from related parties; and
- any other information about the transactions, outstanding balances and commitments necessary for an understanding of the potential effect of the relationship on the financial statements;
- and key management personnel compensation.
- Full disclosure is made in the financial statements of:
- outstanding capital commitments contracted for at the balance sheet date;
- all contingent liabilities including details of pending litigation and material claims against the college and group;
- all guarantees or warranties or other financial commitments including those given to or on behalf of group companies.
- We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements.
- There have been no events (e.g. loss of source (or reduction) of funding (including funding bodies and other grants, donations or private sponsorship), loss of supplier or member of staff, change in student numbers, change in credit terms offered by suppliers, breaches of bank or other covenants, changes in banking or insurance arrangements or facilities) other than those already advised to you since the balance sheet date that would impact on the ability of the college / group to continue as a going concern. Should such events occur prior to your signature of the audit report we will advise you immediately. Except as already incorporated into our cash flow and profit forecasts we have no plans or intentions that would impact on the ability of the college / group to continue as a going concern.
With regards to our going concern assessment we confirm that our future plans are as follows:
- details of future plans to be included which will be tailorable to specific circumstances.
- We confirm that we have evaluated the feasibility of the matters referred to above and consider the plans to be achievable.
- We confirm that our going concern assessment covers the period ending date to be inserted.
- All events occurring subsequent to the date of the financial statements and for which the applicable financial reporting framework requires adjustment or disclosure have been adjusted or disclosed. Should such further material events occur prior to your signature of the audit report we will advise you accordingly.
- The effects of uncorrected misstatements (whether arising from differences in amount, classification, presentation or disclosure of a reported financial statement item and the amount, classification, presentation or disclosure that is required for the item to be in accordance with the applicable financial reporting framework) are immaterial, both individually and in the aggregate, to the financial statements as a whole. A list of the uncorrected misstatements including those in relation to disclosures is attached to this representation letter.
- As agreed in the terms of engagement, we have provided you with:
- Access to all information of which we are aware that is relevant to the preparation of the financial statements such as records, documentation and other matters including minutes of the Governing Body meetings, sub-committee meetings and all appropriate management meetings held between the beginning of the accounting period and the date of this letter;
- Additional information that you have requested from us for the purpose of the audit; and
- Unrestricted access to persons within the college from which you determined it necessary to obtain audit evidence.
- We confirm that all transactions have been recorded in the accounting records and are reflected in the financial statements.
- We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
- We have disclosed to you all information in relation to fraud and suspected fraud that we are aware of and that affects the college and involves:
- Employees who have significant roles in internal control; or
- Others where the fraud could have a material effect on the financial statements.
- We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the college’s financial statements communicated by employees, former employees, analysts, regulators or others.
- We have disclosed all known instances of non-compliance or suspected non-compliance with laws and regulations (including the Funding Agreement(s)) whose effects should be considered when preparing the financial statements. We have also notified you of the actual or contingent consequences which may arise from such non-compliance, including any potential effects on the college’s/group’s ability to conduct its business.
- There have been no communications with the Secretary of State for Education (or the ESFA) in their role as Principal Regulator or Charity Commission in the case of a GFE registered charity during the year or subsequently concerning matters of non-compliance with any administrative duty that we have not shared with you. We have drawn to your attention all correspondence and notes of meetings with regulators.
- We have disclosed to you the identity of the college’s / group’s related parties and all the related party relationships and transactions of which we are aware.
- We have disclosed to you details of all known actual or possible litigation and claims whose effect should be considered when preparing the financial statements.
- We confirm that we have disclosed to you details of all banking and financing arrangements including related contracts and hedging products.
- We confirm that we have informed you of all tax avoidance schemes used by the college / group.
- We have not conducted, or permitted to be conducted any activities which call into question the charitable nature of the college or the group.
- We confirm that as far as we are aware:
- no services have been provided to us or our affiliated entities by RSM network firms and their related entities that we have not already informed you of;
- no gifts, hospitality, favours, donations or sponsorship have been exchanged between us or our affiliated entities and RSM network firms and their related entities that we have not already informed you of;
- no employment relationships exist between us or our affiliated entities and partners or employees of RSM network firms and their related entities we have not already informed you of; and
- no other business or personal relationships exist between us or our affiliated entities and RSM network forms and their related entities we have not already informed you of.
The related entities of RSM network firms are as set out in the list provided.
We acknowledge responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error and we believe we have appropriately fulfilled those responsibilities.
To assist the auditor in complying with ISA (UK) 720 The Auditor’s Responsibilities Relating to Other Information, we confirm that we have informed you of all the documents that will be communicated to the Governors with the annual report.
We confirm that we have taken all the steps that we ought to have taken as governors in order to make ourselves aware of any relevant audit information and to establish that it has been communicated to the auditors. We confirm that as far as we are aware, there is no relevant audit information of which the auditors are unaware.
We confirm that the above representations are made on the basis of enquiries of management and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the above representations to you.