Planning and Interim Audit Highlights - Nottingham City Homes

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Planning and Interim audit highlights memorandum The contacts at KPMG in connection with this report are: 1 Executive summary Page Steve Aggett Director Tel: 0161 2464156 Mob: 07973 161707 Steve.aggett@kpmg.co.uk Sarah Porter Senior Manager Tel: 0121 6095981 Mob: 07920 139012 Sarah.porter@kpmg.co.uk ■ Introduction 2 ■ Summary of key findings 2 2 Planning and Interim audit scope 3 3 Key audit issues and risks 4-5 4 Timetable, reporting and fees 6 Appendices A. Your audit team 7 Kusha Vatish Assistant Manager Tel: 0121 232 3610 Mob:07909 585955 Kusha.vatish@kpmg.co.uk © 2012 KPMG LLP, the U.K. member firm of KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 1
1 Executive summary Introduction The purpose of this report is to set out our planned audit approach for Nottingham City Homes (‘NCH’) and also matters that came to our attention during the course of our interim audit for the year ended 31 March 2012. The objective of our interim was to review and assess the systems and control environment operating at NCH and to make useful comments and suggestions for you to consider. However, you will appreciate that our routine audit work is designed to enable us to form an opinion on the financial statements of NCH and it should not be relied upon to disclose all irregularities that may exist nor to disclose errors that are not material in relation to those financial statements. The content of this paper comprises general information that has been provided by, or is based on discussions with, Management and staff of NCH. This report is provided on the basis that it is for the information of the Audit Committee and Management of NCH and that it will not be quoted or referred to, in whole or in part, without our prior written consent. Summary of key findings Background We commenced our engagement with NCH in February 2012 and this is the first year of our audit. Following the commencement of our work we have met with Management and started our planning for the audit of the 2011/12 financial statements. Our interim audit was conducted during the week commencing 5 March 2012. Results of planning procedures Through our planning procedures, detailed on page three, we have identified a number of key audit risks which may impact on our audit. We have documented our initial view of how these risks are being managed and the potential impact on our audit work on pages four and five. Highlights from interim The Group has effective financial reporting activities and as such we have found that the internal control environment operates satisfactorily. Specific highlights include: ■ ■ ■ ■ year end stock take was appropriately designed and executed; expenditure was found to be appropriately authorised; bank reconciliations had been undertaken effectively; and management supervisor controls were effective. We have provided more detail on the areas we have reviewed on page three. Areas for improvement Through our planning and audit work so far we have found the key financial controls to be operating effectively and have therefore not raised any formal recommendations at this stage. Our final audit is due to commence on 11 June 2012. We will continue our assessment of the control environment and report on any material issues noted within our audit to those charged with governance in the final management letter. © 2012 KPMG LLP, the U.K. member firm of KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 2
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Planning and Interim Audit Highlights - Nottingham City Homes

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