Proposal to provide audit services to Vivacity Culture and Leisure October 2010

Contents Executive Summary Our understanding of your needs Our audit approach – delivering the service Our team and credentials Our fees About Bulley Davey Conclusion

1) Executive Summary Friendly, approachable and local team Understanding of charities Support ( if required) through first year transition issues High level of partner involvement Delivering an efficient risk focused service: - up front planning - staff continuity - no surprises

2) Our understanding of your needs Communication and support User friendly and pragmatic audit approach Knowledge of Charities Charity accounts – opportunities and difficulties Issues and developments, affecting charities

3) Our audit approach – delivering the service 3.1 Background Audit – Opportunity rather than overhead Risk based audit approach Three critical success factors i) Through understanding of organisation - Objectives - Processes - Risk ii) The right team iii) Up front planning and tight project management First Year through considerations

3) Our audit approach (continued) 3.2 First year through issues No prior year accounts Pulling together information from multiple sources Accounts in statutory format that comply with SORP and CA ‘06 Accounting Policies Reserves Policies Segmental reporting Disclosure requirements of SORP Establishing a manual of Procedures All of the above are accounting issues which need to be addressed before the audit and ideally ASAP We can help – but will be separate to the audit

3) Our audit approach (continued) 3.3 Our risk based audit approach First year – significant up front investment in understanding the organisation Most likely an interim audit visit to build our knowledge/document systems Audit approach will respond to identified risks Much will depend on existence/reliability of internal controls and systems On site field work will be led by qualified audit senior Rachel Ward will be on site regularly to review and monitor work On site field work – up to 2 weeks in first year – 5-7 days thereafter

3) Our audit approach (continued) 3.4 The audit cycle Audit strategy Understand key revenue and cost drivers and assess audit risk Audit Planning Focus on risk areas and agree timetable/informati on needs Fieldwork Analytical review, audit testing, Manager and Partner reviews Reporting Audit findings, areas for improvement, potential adjustments Feedback Debrief, incorporate changes into next year’s plan Vivacity Culture and Leisure Formal reporting & feedback Audit clearance meeting  Written recommendations  Feedback on our work Up Front Planning Identify key audit risks Agree timetable and information requirements Communication of expected issues and risks Efficient Execution Staff continuity Well briefed On site review Real time communication Throughout the year During planning and fieldwork As issues arise

4) Our Team and credentials Two partner team for audit and non-audit services Ian Brown - Lead audit partner Brad Revell – Accounting and advisors partner Rachel Ward - Audit Associate - in charge of day to day audit matters Our credentials - Twycross Zoo - Farriers Registration Council

5) Our fees Our fee for audit of the financial statements = £[to insert] Fee includes: - At least two formal meetings per year - planning - audit findings - Dealing with routine and ad hoc questions during the year Assumptions: i)Client prepares draft financial statements prior to audit that comply with the Companies Act 2006, the SORP and relevant accounting standards ii)Completion of a client assistance pack to support the draft accounts in preparation for audit

6) About Bulley Davey 11 partners Over 100 staff Medium size, independent firm Partner led approach Pragmatic advice, delivered in friendly, jargon-free manner References available on request

7) Conclusion Friendly approachable and local team Understanding of charities Support (if required) through first year transition issues High level of partner involvement Delivering an efficient service: - risk focused - up front planning - staff continuity - no surprises