Appendix 2 - Letter of Representation
Perth and Kinross Council · 11 December 2023
Back to Audit and Risk Committee — 11 December 2023 and its agenda
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Corporate & Democratic Services Chief Operating Officer Karen Donaldson Brian Howarth Audit Director Audit Scotland 4th Floor 8 Nelson Mandela Place Glasgow G2 1BT Finance Division Head of Service Stewart MacKenzie 2 High Street, PERTH, PH1 5PH Tel 01738 475500 Contact Mr Stewart MacKenzie www.pkc.gov.uk Our ref SMACK/AOB/KD Your ref Date Dear Brian Perth & Kinross Council Annual Accounts 2022/23 1. This representation letter is provided about your audit of the annual accounts of Perth & Kinross Council and its group (hereafter referred to as Perth & Kinross Council) for the year ended 31 March 2023 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view in accordance with the financial reporting framework, and for expressing other opinions on the remuneration report, management commentary and annual governance statement. 2. I confirm to the best of my knowledge and belief and having made appropriate enquiries of the Chief Executive and Executive Leadership Team, the following representations given to you in connection with your audit of Perth & Kinross Council’s annual accounts for the year ended 31 March 2023. General 3. Perth & Kinross Council and I have fulfilled our statutory responsibilities for the preparation of the 2022/23 annual accounts. All the accounting records, documentation and other matters which I am aware are relevant to the preparation of the annual accounts have been made available to you for the purposes of your audit. All transactions undertaken by Perth & Kinross Council have been recorded in the accounting records and are properly reflected in the financial statements. 4. I confirm that the effects of uncorrected misstatements are immaterial, individually and in aggregate, to the financial statements as a whole. I am not aware of any uncorrected misstatements other than those reported by you. Delayed Office Opening for Employee Training This office will be closed from 8.45 am - 11.00 am on the first Thursday of each month.
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Financial Reporting Framework 5. The annual accounts have been prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom 2022/23 (the Code) and the requirements of the Local Government (Scotland) Act 1973, the Local Government in Scotland Act 2003 and The Local Authority Accounts (Scotland) Regulations 2014. 6. In accordance with the 2014 regulations, I have ensured that the financial statements give a true and fair view of the financial position of the Perth & Kinross Council and its group at 31 March 2023 and the transactions for 2022/23. Accounting Policies & Estimates 7. All significant accounting policies applied are as shown in the notes to the financial statements. The accounting policies are determined by the Code where applicable. Where the Code does not specifically apply, I have used judgement in developing and applying an accounting policy that results in information that is relevant and reliable. All accounting policies applied are appropriate to Perth & Kinross Council circumstances and have been consistently applied. 8. The significant assumptions used in making accounting estimates are reasonable and properly reflected in the financial statements. Judgements used in making estimates have been based on the latest available, reliable information. Estimates have been revised where there are changes in the circumstances on which the original estimate was based or as a result of new information or experience. Going Concern Basis of Accounting 9. I have assessed Perth and Kinross Council’s ability to continue to use the going concern basis of accounting and have concluded that it is appropriate. I am not aware of any material uncertainties that may cast significant doubt on Perth & Kinross Council’s ability to continue as a going concern. Assets 10. Where a rolling programme of asset valuations has been used, I have satisfied myself that the carrying amount of assets at 31 March 2023 does not differ materially from that which would be determined if a revaluation had been carried out at that date. 11. I carried out an assessment at 31 March 2023 as to whether there is any indication that an asset may be impaired and have recognised any impairment losses identified. 12. I have provided you with all information of which I am aware regarding any valuation exercises carried out after 31 March 2023. 13. There are no plans or intentions that are likely to affect the carrying value or classification of the assets recognised within the financial statements.
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14. Owned assets are free from any lien, encumbrance or charge except as disclosed in the financial statements. Liabilities 15. All liabilities at 31 March 2023 of which I am aware have been recognised in the annual accounts. 16. Provisions have been recognised in the financial statements for all liabilities of uncertain timing or amount at 31 March 2023 of which I am aware where the conditions specified in the Code have been met. The amount recognised as a provision is the best estimate of the expenditure likely to be required to settle the obligation at 31 March 2023. Where the effect of the time value of money is material, the amount of the provision has been discounted to the present value of the expected payments. 17. The accrual recognised in the financial statements for holiday untaken by 31 March 2023 has been estimated on a reasonable basis. 18. The pension assumptions made by the actuary in the IAS 19 report for Perth & Kinross Council have been reviewed and I confirm that they are consistent with management's own view. 19. There are no plans or intentions that are likely to affect the carrying value or classification of the liabilities recognised in the financial statements. Contingent liabilities 20. There are no significant contingent liabilities, other than those disclosed in Note 38 to the financial statements, arising either under formal agreement or through formal undertakings requiring disclosure in the accounts. All known contingent liabilities have been fully and properly disclosed, including any outstanding legal claims which have not been provided under the Code and IAS 37. Fraud 21. I have provided you with all information in relation to: • my assessment of the risk that the financial statements may be materially misstated because of fraud • any allegations of fraud or suspected fraud affecting the financial statements • fraud or suspected fraud that I am aware of involving management, employees who have a significant role in internal control, or others that could have a material effect on the financial statements.
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Laws and Regulations 22. I have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. Related Party Transactions 23. All material transactions with related parties have been appropriately accounted for and disclosed in the financial statements in accordance with the Code. I have made available to you the identity of all Perth & Kinross Council’s related parties and all the related party relationships and transactions of which I am aware. Remuneration Report 24. The Remuneration Report has been prepared in accordance with the Local Authority Accounts (Scotland) Amendment Regulations 2014, and all required information of which I am aware has been provided to you. Management commentary 25. I confirm that the Management Commentary has been prepared in accordance with the statutory guidance and the information is consistent with the financial statements. Corporate Governance 26. I confirm that Perth & Kinross Council has undertaken a review of the system of internal control during 2022/23 to establish the extent to which it complies with proper practices set out in the Delivering Good Governance in Local Government: Framework 2016. I have disclosed to you all deficiencies in internal control identified from this review or of which I am otherwise aware. 27. I confirm that the Annual Governance Statement has been prepared in accordance with the Delivering Good Governance in Local Government: Framework 2016 and the information is consistent with the financial statements. There have been no changes in the corporate governance arrangements or issues identified, since 31 March 2023, which require to be reflected. Group Accounts 28. I have identified all the other entities in which Perth & Kinross Council has a material interest and have classified and accounted for them in accordance with the Code. Any significant issues with the financial statements of group entities, including any qualified audit opinions, have been advised to you.
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Common Good Fund 29. I confirm, to the best of my ability, that all material common good assets have been identified and correctly accounted for within the common good fund financial statements and where appropriate, common good assets in use by the council have been assessed and accounted for in line with IAS 17. Events Subsequent to the Date of the Balance Sheet 30. All events subsequent to 31 March 2023 for which the Code requires adjustment or disclosure have been adjusted or disclosed. Yours sincerely Stewart MacKenzie Head of Finance / Section 95 Officer