NonProfit Services

Services for Not For Profit Organisations
    The Charity Commission guidance states: -
To maintain public confidence in the work of charities, charity law requires most charities to have an external scrutiny of their accounts. Provided a charity is not required by law or its governing document to have an audit then trustees may choose a simpler and less expensive form of external scrutiny called an independent examination.
For financial years ending on or after 1 April 2009, the trustees may opt for an independent examination provided the charity's gross income threshold is £500,000 or less and where the charity's gross income exceeds £250,000 its gross assets are £3.26 million or less.

An independent examination is a simpler form of scrutiny than an audit but it still provides trustees, funders, beneficiaries, stakeholders and the public with an assurance that the accounts of the charity have been reviewed by an independent person.

If you feel that your organisation needs an examination please contact me for a quotation.

Internal Audit Consultancy
An internal audit function is not a statutory requirement in voluntary organisations as it is in public authorities. However, it can be a very useful tool for reviewing, improving and ensuring your organisation has effective internal controls and management information systems. Briefly, it is an internal audit of all of your organisation's internal control systems, financial and non-financial.

The Institute of Internal Auditors approved the following definition of Internal Auditing in 2002: "Internal auditing is an independent objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes."

I can carry out an organisational health check covering management information systems, financial review, internal control review and risk management as detailed below. The Charity Commission has recently updated its guidance on trustee duties to protect charities from fraud and financial abuse. I can work with trustees to ensure that procedures are updated to reflect the guidance

Risk Management
In these uncertain times it is more important than ever to be able to identify the risks and opportunities that charities face. Having worked in the charitable sector as an internal auditor I know how time consuming it can be to formulate and keep “live” an active risk assessment process.

The Charity Commission guidance states: -

    Charity Trustees should regularly review and assess the risks faced by their charity in all areas of its work, and plan for the management of those risks. Risk is an every day part of charitable activity and managing it effectively is essential if Trustees are to achieve their key objectives and safeguard their charity’s funds and assets.
    There is a legal requirement for Trustees of charities requiring an audit to make a risk managment statement in their annual report.

I can work with you to help identify the circumstances or events that would prevent an organisation achieving the goals and objectives set out in the business plan or strategy. Risk management should not be a purely negative process, if organisations do not take risks they do not do anything. The risk assessment process involves looking at the relative risks of providing particular services and to what extent those risks can be offset or mitigated. This process often identifies opportunities as well as risks.

The process involves: -

    Review of the business plan and or strategy to identifying the organisational goals and objectives
    Identifying the risks that the objectives will not be achieved and opportunities arising
    Scoring those risks as to the impact should the event occur and the likelihood of it occurrence
    Reviewing any controls/procedures already in place to offset the risk and considering whether these controls are adequate. If not what further measures can be taken and how effectively would these new measures reduce the risk.

This approach enables organisations to concentrate on the high scoring risks and keep them under review. If you feel that your own or any of the organisations you work with would benefit from some assistance with their risk management processes please contact me and we can discuss matters further.

If you’d like to discuss how our accountancy services could be of benefit to your business, please contact Patricia on