1. Audit Matters

2. Three matters to consider:  Annual Management Letter.  External Auditor Performance and Fees.  Change of Audit Firm for 2012/13 audit.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.