Who can independently examine charity accounts?
The examiner needs to have the right skills: An independent examination can be carried out by any person who is independent (see section 3), has the necessary knowledge and experience (see appendix 5) and provided the gross income of the charity is £250,000 or less.
Can I undertake an independent examination of a charity?
The trustees of most charities are able to choose to have an independent examination instead of an audit. Independent examination is a ‘light touch’ scrutiny involving the examiner checking for specific matters only.
Who can prepare charity accounts?
CIOs which have either charitable or non-charitable subsidiaries must prepare group accounts under the Charities Act where the aggregate income of the group, after the elimination of all group transactions from income for the year exceeds £1 million and those group accounts will be subject to audit under charity law.
What qualifications does an independent examiner need?
Selecting an independent examiner
No specific qualification is required, but clearly in all cases the person must have a good understanding of accounts and charity accounts in particular.
Do all charities require an audit?
Except for NHS charities, only those charities with gross income of more than £25,000 in their financial year are required to have their accounts independently examined or audited – below that threshold, an external scrutiny of accounts is only needed if it is required by the charity’s governing document.
Does a CIO need an independent examination?
Broadly speaking, an independent examination is needed if income is between £25,000 and £500,000 and an audit is needed where the income exceeds £500,000. An audit will also be required if total assets (before liabilities) exceed £3.26m, and the charity’s income exceeds £250,000.
What are fully accrued accounts?
Fully accrued accounts allocate the costs or income of a particular activity according to when the liability is incurred or when there is entitlement or certainty about income. This is not necessarily the date on which money is received or paid out.
What is a charity audit?
An audit is the highest level of scrutiny of accounts and the auditor looks for positive evidence to enable the accounts to be described as a “true and fair” view. Every charity with an annual income above £1 million (or with an income over £250,000 and assets above £3.26m) is required to have an audit.
What is considered a small charity?
There is no one definition of ‘small’. The Small Charities Coalition for example defines small charities as those with an annual income under £1m making up 97% of all charities. However, for NCVO’s Almanac we define ‘micro’ and ‘small’ charities as those with an income under £10,000 and £100,000 respectively.
Can you file charity accounts online?
If you’re a charity with an income under £10,000, this is easily completed online, using your password. All charities must keep records of their accounts and provide them to the public if requested.