Film Fund Spreadsheet by jze10466


Film Fund Spreadsheet document sample

More Info
									Skillset Film Skills Fund (FSF)
Audit Guidelines
If the total value of your project is greater than £50,000 your project will need to be audited upon
completion, as stipulated in the guidelines. It will need to be audited by an external auditor, please ensure
this cost has been built into your budget.

Below are some guidelines to assist you in getting prepared for such an audit, the nature of the work to be
carried out, the kind of information that the auditor will be looking and the reports to be produced.

Submission date for the report should be no later than three months after the end date of the project to
which the report relates. Please bear in mind that the final award payment of 5% is dependent on this.

Organising an Auditor
Not all accountants will be suitably qualified or experienced to accept the appointment as external auditor
in respect of your project. Appointment should be made no later than the financial report date and at least
three months before the report needs to be submitted. This allows a suitable auditor to be appointed in
adequate time and for a mutually convenient date to be fixed for work to commence. March to June is a
busy time for audit firms.

The Audit and Assurance Faculty of The Institute of Chartered Accountants in England and Wales issued
a technical release in September 2003 called „Public Sector Special Reporting Engagements – Grant
Claims‟ which gives guidance to assist reporting accountants when asked to provide reports of this nature.

Either at the time of being offered the appointment or prior to the audit visit the auditor may request details
or a copy of the following:

       An outline of the project and the key personnel
       The offer letter from Skillset
       Quarterly expenditure report spreadsheet to date

These documents will enable the auditor to adequately plan the work to be undertaken and produce a tri-
partite agreement.

Tri-Partite Agreement
Before your chosen auditor carries out any audit work, they must develop a tri-partite agreement that
explains how they will carry out the audit and what they will check.

An example of a tri-partite engagement letter is attached. If approved by Skillset three copies of this letter
will be signed by the auditor, your organisation and Skillset with each keeping one copy. Once signed off
by all three parties, work on the audit can commence.

Also available in large print, Braille, audiotape and PC formatted disc formats.
The auditors will try to arrange their audit on-site visit. That is, no sooner than one month after the end of
the financial period being reported on and no later than one month before the report has to be submitted.

It is vitally important that dates are fixed well in advance that allow you the delivery organisation time to
prepare adequate files and collate the correct information and documentation in order to ensure the
auditors work can be completed effectively and efficiently.


       What the auditor will require
        In order for the auditor to fulfil the scope of their work and obtain the appropriate assurance and
        sufficient evidence that the amounts claimed are in accordance with the Grant agreement they will
        require (in addition to the documentation already supplied and noted under Pre-Audit section of
        these notes) the following:

                A copy of the quarterly expenditure spreadsheets for the full period of claim
                Schedules, calculations and documentation to support all the amounts in the claim
                Access to payroll, bank statements and other files of possible confidentiality
                Discussions with directors of the organisation, key members of the project team and
                 possibly any freelance people used

        This list is not exhaustive and the types of records available and required will vary according to
        the project‟s internal systems.

        Where possible all information should be collated together in one place and on one or a number
        of clearly and systematically cross referenced files.

        What the auditor will do
        The extent and nature of the testing to be carried out by the auditor will vary from auditor to
        auditor and from assignment to assignment and will be dependant upon the level of assurance
        required. The auditor should as part of their tri-partite agreement include a section „scope of work‟
        and it is this that will form the basis of the work they will carry out.

        Typically the senior auditor will start with an interview meeting with the project manager and
        financial manager responsible for collating the audit file or information. This will allow the audit
        team to obtain an understanding of the project, expenditure headings and layout of the audit filed
        prepared for them.

        Each section of the claim will be reviewed and checked to supporting calculations and
        documentary evidence on a sample basis to ensure amounts claimed have been accurately
        recorded, represent eligible expenditure and have been defrayed in the correct period. This
        evidence may be backed up by observations and discussions with appropriate members of the
        project team and not solely on documentary evidence.

For each section of claim typical audit work may involve:

Project Management Costs
    - Ensure staff costs are broken down into a cost per employee
    - Ensure that the cost per employee equals their hourly rate multiplied by their total hours
        attributable to the project
    - Ensure that the employee‟s hourly rate is equal to their total salary cost (Gross salary, Employers
        National Insurance cost, Pensions and Benefits in Kind but not bonuses) divided by their total
        hours worked
    - Ensure the total salary cost is supported by end of year payroll records (P60‟s/P14‟s, P11D‟s,
        contracts of employment)
    - Ensure the calculation of total workable hours is reasonable
    - Ensure total hours worked on the project is supported by work schedules or time sheets and that
        these time sheets have been signed by the staff member and the project manager

    -   Speak to a number of staff on the list to ensure they are familiar with the project and discuss their

Overhead Apportionment
   - Obtain a schedule of the overheads used for the apportionment
   - Ensure the overhead expenditure is supported by documentary evidence and only includes
      eligible items
   - Where an agreed apportionment rate has been used ensure this has been agreed in writing by

   - Obtain details of the total hours worked for the period by the whole organisation
   - Match employees to the payroll records and ensure their total hours for the period seem
   - Ensure the total hours worked by all employees on the project is the same as the figures used for
       calculating staff costs
   - Ensure the % calculated by project hours divided by total organisation hours is accurate
   - Apply the % derived to the total overheads and match this to the amount claimed

Other costs
   - Ensure project invoice list expenses column or separate list total agrees to claim total
   - Ensure an authorised member of the project team has approved the claim form
   - Ensure all costs are supported by appropriate invoices and relate wholly to the project or the claim
       is only for the proportion that is applicable
   - In all cases ensure that the payment made have been defrayed before the period end

As already noted the list of tests and checks that an auditor may undertake will vary and the above is not
exhaustive but does highlight the sort of paperwork an auditor will expect and want to see.

You should be looking for your Independent external auditor to issue their report within two weeks of their
on site visit and no later than one week within the deadline for submission of the report.

Before the auditor issues the report they may (where they have been unable to obtain complete
satisfactory evidence and they have had to rely on verbal representations) request written representations
from the source of their reliance. Examples of this might be; members of staff to confirm they have worked
on the project and their time sheets are accurate and Contractors or service providers to confirm they
have worked on the project and that they are bona-fide businesses.


       What will the auditor produce

        Once the auditor is happy their tests are complete and they have obtained satisfactory evidence
        to enable them to confirm the claim they will issue an appropriate report.

        An example of the report can be seen further below

        At the same time as producing the final report and submitting it direct to Skillset the auditor will
        also produce an invoice for their time costs. These costs will be submitted direct to you and will be
        payable by your project.

Example of a Tri-partite Engagement Letter
Where a sponsoring body is to be bound into the engagement process, then all references to the
grant paying body should also include references to the sponsoring body.

Grant Claim/returns – the model tri-partite agreement
Addressee details:
(i) The [grant paying body]
(ii) Grant Recipient

Dear Sirs

Grant reports/confirmations
We are writing to confirm the terms and conditions on which you have engaged [name of firm] to provide
reports/confirmations in connection with [description or name of grant] paid by [grant paying body] to
[grant recipient]. These terms and conditions will apply to the reports/confirmations to be supplied for the
period [ended/ending ... ] and for subsequent periods unless otherwise agreed in writing. We will write
separately to the grant recipient regarding practical matters such as the timing of our work, staffing and
our charges. Our invoice will be addressed to [Grant Recipient], who will be solely responsible for
payment in full.

Scope of our work
We will complete the relevant work specified below on the schedule (as defined in the funding
agreement). The schedule is to be prepared by, and is the sole responsibility of [grant recipient].

Our work will comprise the following:

[Details of planned work relevant to the nature of the claim or grant, level of assurance and form and
content of report required]

[High level assurance] On the basis of the detailed tests carried out, we will report whether, in our
opinion, we have obtained sufficient appropriate evidence that the amounts shown in the schedule are
[presented fairly in all material respects in the context of reporting upon this grant claim and in accordance
with the terms and conditions set by the grant paying body].

[Moderate assurance] We will report whether anything has come to our attention arising from the limited
tests carried out (as specified in the schedule) to suggest that the amounts shown in the schedule have
not been spent in accordance with the terms and conditions set by the grant paying body.

[Agreed upon procedures] We will complete the specified limited scope procedures set out below on the
attached schedule. Upon completion of the procedures, we will provide you with a report of our findings.
You have both agreed that the scope of our work, as specified below, is sufficient for your purposes.

Please note that although there are various levels of assurance, Skillset require the auditor to
provide a high level of assurance

[Preparation of any document that [Grant recipient] may be required to submit to [grant paying body] in
connection with our work will be the responsibility of [Grant recipient]‟s Directors, who will also be
responsible for ensuring that [Grant recipient] maintains proper accounting records and such other records
as may be required by [grant paying body]. [Grant recipient]‟s Directors will on request supply us with
confirmation of matters affecting our work which are dependent on the Directors‟ judgement.]

Save as set out above, we will not seek to establish the accuracy, completeness or reliability of any of the
information or documentation made available to us. Our work will not amount to an audit of financial
statements and will not give the same level of assurance as an audit.

To the fullest extent permitted by law we do not and will not, by virtue of our reports/confirmations or
otherwise, assume or accept any duty of care or liability under this engagement to [Grant recipient] or to
[grant paying body] or to any other party, whether in contract, negligence or otherwise in relation to our
audits of [Grant recipient]‟s financial statements.

Having carried out our work we will issue reports/confirmations addressed to [grant recipient] and [grant
paying body] in the form set out in the appendix to this engagement letter, if our findings support this. In
determining the form of our report we will take into account, (though without being bound by it) any form of
reporting that the [grant paying body] has suggested. We will deliver copies to [Grant recipient] at the
same time. This letter will be identified in our reports/confirmations as the “tri-partite agreement” under
which our reports/confirmations have been issued. Our reports/confirmations will be released on the basis
that they are not to be copied, referred to or disclosed, in whole or in part, to any other party without our
prior written consent, which may be conditional. If we need to qualify our opinion, we will issue a qualified
report but will continue to use the agreed form of report for all aspects that are not qualified.

Other matters
Our duties and liabilities in connection with this engagement owed to [Grant recipient] and to [grant paying
body] will differ.
[Detail any exclusions and limitations on the firm‟s liability to both the grant paying body and the grant
recipient and any relevant qualifications required to satisfy statutory reasonableness criteria.

Our duty to [grant paying body] will be limited to delivery of reports/confirmations in the agreed form to
enable it to meet its statutory obligations. Delivery of such reports/confirmations (or the supply of
confirmation that we are unable to do so in the agreed form) at any time will discharge that obligation in
full. We will not owe [grant paying body] any other duty, in contract, negligence or otherwise, in connection
with our reports/confirmations or their preparation.

This agreement shall be subject to and governed by English law and all disputes arising from, or under, it
shall be subject to the exclusive jurisdiction of the English courts.

[Detail or append any other terms and conditions to apply to this work.]

Please confirm, by signing below, your agreement to this letter. Once you have done so, this letter will
form a tri-partite contract between us in respect of the matters covered. If you wish to discuss any aspects
of this letter, please contact [name and telephone number].

Yours faithfully

[Name of accountant]

[Grant recipient]

[Grant paying body]

Auditors’ Report to the Accounting Officer of Skillset
   1. This report has been produced for the purposes of allowing [name of grant recipient] („the grant
      recipient‟) to meet its reporting obligations in respect of grants receivable from Skillset („the
      provider‟) in respect of [ xxxxxxxxxxxxxx] („the Project‟).

       The report is intended solely for the use of the grant recipient and the provider for the purpose
       specified above. It has been produced in accordance with our engagement letter dated [date of
       engagement letter] (as attached), the terms of which shall apply as if set out in full in this report.

       [name of auditors] does not accept any duty or responsibilities to, and denies liability to, any other
       party to whom this report is shown or into whose hands it may come.

   2. The grant recipient is responsible for preparing the grant claim in accordance with the Grant
      Agreement relating to [ xxxxxxxxxxxxxx] („the Project‟). Our responsibility is to report to you
      whether in our opinion the amounts shown in the grant claim have been properly extracted from
      the grant recipients‟ records and that the information on file supports those claims.

   3. We have examined the grant claim submitted by the grant recipient in the period [start date – end
      date] in respect of the project.

   4. We have also examined the records of the grant recipient in accordance with the procedures set
      out in the tri-partite agreement and have obtained such explanations and carried out such tests as
      we consider necessary to be able to support our opinion.

   5. We note that:

   6. We report that in our opinion, subject to any matters referred to in paragraph 5 above;


       Total Skillset Funds Received                                        xxxxx
       Total Partnership Funds Received                                     xxxxx
                                                                    £       xx,xxx

       Eligible costs are as follows:

       Total Training Expenditure                                           xx,xxx
       Total Project Management Costs                                       xx,xxx
       Total Equipment Costs                                                xx,xxx
       Total Marketing/ Recruitment Costs                                   xx,xxx
       Total Overhead Costs                                                 xx,xxx
       Total Hardship Costs                                                 xx,xxx
       Total Other Expenditure                                              xx,xxx
                                                                    £       xx,xxx

  Name                           ………………………………………..

  Signature                      ………………………………………..

  Date                           ………………………………………..

  Address                        ………………………………………..
  Or Official Stamp


To top