E123 - Auditing charities with Michelle Ferris
Updated: Jan 11, 2021
That’s where the enjoyment of my role comes from really… to have clients pick up the phone and ask me questions, and to work with charities, not to be seen as something to fear.
In this episode we speak with Michelle Ferris – Head of Charities and Care at Albert Goodman – about charity audits and independent examinations of accounts.
Auditing of charities is crucial and stipulated as part of the annual reporting of charities, but it also serves to reassure Board, Charity staff and volunteers, those they support and those that support them, that a charity is in the best possible place to deliver and fulfil its obligations.
Approximately 4.5% of registered charities (or 7,600) in England and Wales have a an income of £1m or more and therefore require a full annual audit. About 35% of registered charities in England and Wales have an income of £25,000 but less than £1m (or 59,000), and are required to have an independent examination of their accounts.
The audit is a helpful monitoring tool for Trustees and charity leaders, and a recognition of the efficient working practices and hard graft that so many charities deserve.
Audits and independent examinations: https://knowhow.ncvo.org.uk/organisation/financial-management/processes-procedures-and-controls/audit-and-independent-examination
Charity Commission - charity income bands: https://register-of-charities.charitycommission.gov.uk/sector-data/charities-by-income-band
Albert Goodman charity accountants: https://albertgoodman.co.uk/specialisms/charity-accountants/