Charity Accounts: New Independent Examination Rules

5th December 2017

 

For many years now, many mid-sized UK charities have been required to subject their annual statutory accounts to independent examination. For such charities, with income within the range of £25,000 to £1m and gross assets of less than £3.26m, an independent examination is a lighter touch of independent scrutiny than a full audit. As many charities fall within these size criteria, independent examinations are very common, so it comes as no surprise that the Charity Commission have now updated their guidance on what is involved:

Compared to the previous 2015 guidance, Independent Examiners are now required to:

  1. Check for any conflicts of interest that may prevent them from carrying out the independent examination.
  2. Check that related party transactions in ‘SORP accounts’ are properly disclosed.
  3. Check whether the trustees have considered the charity’s financial circumstances when preparing the accounts, and for ‘SORP accounts’ whether the trustees have made an assessment of the charity’s position as a going concern.
  4. Report matters of material significance to the respective charity regulator.

As we live in an age of poor charity governance becoming news worthy, perhaps no surprise.



 
Other items in Blogs
 
Vanessa Pearson
18th June 2018 Public Sector contractor wins IR35 case

HMRC have lost a second IR35 case this year, and their second case against the same contractor, putting into doubt their own understanding of the IR35 rules. Ian Wells, director of personal service company Jensal Software Limited provided his services to the Department of Work and Pensions via a recruitment agency during 2012 and 2013.…

Read More »

Jeannette Hume
18th June 2018 EIS Money: Beware how you spend it!

Tech companies that are financed through EIS equity cash will be aware that this ‘tax wrapper’ can be super-generous, but that many criteria have to be met to ensure eligibility. One of these long standing criteria has been that the company must use the proceeds (up to £5m pa) raised: In either a qualifying trade…

Read More »

Thomas Carter
15th June 2018 Making Tax Digital, VAT and newly registered businesses

All VAT registered businesses with a turnover over the current VAT registration threshold of £85,000 will be required to comply with the Making Tax Digital (MTD) record keeping and reporting requirements for VAT periods which start on and after 1st April 2019. Where a business is VAT registered but has turnover under £85,000 at April…

Read More »

Jodie Tarbin
11th June 2018 Changes ahead for CGT payment

HM Revenue & Customs is proposing, in less than two years’ time, to rewrite the rules around Capital Gains Tax, CGT, following the disposal of a residential property. The current timescale for payment is going to be slashed to 30-days. From April 6 2020, a payment-on-account of CGT, will be required following the sale of…

Read More »

Richard Alecock
4th June 2018 Property Allowance

The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property. The property allowance applies to relevant property income which includes: Both UK and overseas property businesses. Both commercial and residential letting (but not rent-a-room businesses – see below).Where property income exceeds £1,000, the legislation…

Read More »

Victor Courdelle
4th June 2018 Whiting & Partners Now Xero Platinum Champion Partner

We are very proud to announce that on 23 May 2018 we achieved Xero Platinum Champion Partner status, joining a select group of 80 other firms Nationwide.  The hard work of all Partners and Staff in reaching this milestone is a credit to each individual and the Firm as a whole. Many of our clients…

Read More »