Accounts Examination Service

Introduction

All charities need to comply by law with current accounting regulations.  These include the requirements of the Charities Act 1993; the Charities Act 2006 and the "Accounting and Reporting by Charities" Statement of Recommended Practice (SORP 2005).  A guide to the accounting requirements issued by the Charity Commission can be downloaded by clicking here: Charity Accounts

These requirements include the preparation of annual accounts to particular standards and the examination or audit of those accounts. If the annual income of your charity falls between £25,000 and £500,000 your accounts will need to be examined by an Independent Examiner, unless the gross assets (i.e. before deducting liabilities) shown in the accounts exceed £3.26 million.

Above these thresholds, a full professional audit will be required - Note: I do not provide an audit service.  The full table of thresholds can be downloaded by clicking here: Thresholds

I aim to provide clients with a high quality Accounts Examination Service for charities with an income of up to £500,000. The service includes not only examination of the accounts, but the preparation of accounts where requested. Accounts will be in a form acceptable to the Charity Commission and will incorporate an Examination Certificate.

Examination requirements

An Independent Examiner is "an independent person who is reasonably believed by the Trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts." (Section 43(3)(a) Charities Act 1993). For an examiner to be independent he should have no connection with the trustees which might inhibit the impartial conduct of the examination. This will exclude anyone closely involved in the church or charity's administration. Whilst examiners need not be professionally qualified if the charity's income is under £250,000, they will have a duty of care and must comply with Statutory Directions issued by the Charity Commission. Where the gross income or expenditure is over £250,000 pa, a qualified examiner is recommended as the accounts must be prepared on the accruals basis and in full compliance with SORP 2005.

A guide issued by the Charity Commission for trustees about the independent examination of charity accounts can be downloaded by clicking here: Guide to Examiners

For more information contact:

Dave Harvey FMAAT MCIE

155 Bodmin Road

Truro,

Cornwall

TR1 1RA

Tel: 01872 279759

Email: dharvey155@yahoo.co.uk