Too Many Charity Accounts are Unacceptable
The Charity Commission surveyed 215 charitable accounts, comparing them over two financial years, and found that less than two thirds of charities produced acceptable accounts during that period. Only one third of charity reports fully meet legal requirements.
This comes as no surprise to Right Balance Accounting as we have often found it necessary to re-work our clients’ accounts to show, for example, the fund balances of both unrestricted and restricted funds, or to derive correct comparative figures. In some cases we have re-drafted accounts, prepared by others, to put them into a format that fully complies with the Charities SORP.
The Charity Commission found that almost 90% of charities with an income of over £500,000 filed acceptable accounts. This number fell to 54% for organisations with an annual income of less than £250,000.
In its report The Quality of Charity Accounts, the Commission stated that the quality of accounts reporting more or less correlates to an organisation’s size. (Click here to read the report)
Paula Sussex, Chief Executive of the Charity Commission speaking at an NPC conference on Impact said, ‘knowing what charities do and achieve with their resources matters to people. We know that accountability is among the most important drivers of public trust in charities.’
Right Balance Accounting staff are experts in preparing accounts for charitable organisations. If you want us to quote for your organisation’s annual accounts preparation, to advise you on your accounts, to provide an Independent Examination of Accounts, or to prepare your payroll, contact us on 01768 800350.
All charities must submit three things: an annual report, an independent scrutiny report, and accounts. Let us help you to get them right!
Alan Stubbs FCMA
Right Balance Accounting
Charity audit threshold changes take effect
Charity audit thresholds have changed from £500,000 to £1m in an effort to reduce the regulatory burden for charities. This means that fewer charities will be required to have their accounts formally audited.
They can instead have their accounts looked at by an independent examiner to ensure a high level of assurance remains.