Services For Charities.
- Independent Examiner’s Report
- Accounting and bookkeeping services
- Development of management accounting reports
- Help with Trustees’ Annual Reports
- Online filing and reminders
- Health check covering accounting records, governance, risk assessment and compliance.
The Charities Act allows for certain charities to be exempt from costly audits and instead be independently examined. An independent examination is carried out by an individual who will issue a report to the trustees. The report must be signed by the individual in their own name and not on behalf of, or by a firm.
The independent examination is less onerous than an audit but nonetheless when performed by a competent examiner is of substantial value. It is governed by some thirteen Directions issued by the Charities Commission and now includes consideration that trustees have considered whether the charity is a going-concern.
Some charities can also produce cash based accounts rather than the traditional accruals based accounts.
The General Rules Are:
1. An audit is always required if the governing documents of the charity require it or the trustees request it.
2. Charitable companies must always prepare accounts on the accruals basis and any accounts prepared this way must be in accordance with the Statement of Recommended Practice for Charities.
3. If gross income (turnover) is greater than £1m or if greater than £250k and gross assets greater than £3.26m then an audit is required, otherwise an independent examination is permitted.
4. If gross income is less than £250k then the simplified Receipts and Payment Account along with a Statement of Assets and Liabilities may be prepared.
5. If gross income is greater than £250k and where an audit is not required then the independent examination must be performed by a member of a listed professional body otherwise a suitably qualified person may carry out the independent examination.
6. If gross income is less than £25k then no independent examination is required although the trustees may request one.