On 19th February 2015, the Cabinet Office published its response to the consultation on charity audit and independent examination.
It explained that 56 respondents contributed to the consultation that was initiated by recommendations made by Lord Hodgson in his review of the Charities Act 2006 and was concluded on 27th January 2015. The resulting Statutory Instrument which sets out the proposed changes will be laid in Parliament on 30th March 2015.
It is thought that the changes will be effective for accounting periods ending on or after 31st March 2015, somewhat earlier than envisaged.
The key outcomes were:
- the charity audit income threshold will rise to £1 million (from £500k)
- the group accounts preparation and audit income threshold will also rise to £1 million
- asset thresholds will stay the same.
These proposals were supported by the vast majority, but some of the respondents did object, commenting on what they considered a lack of scrutiny in independent examinations and inadequate training/experience of examiners.
Here at George Hay, my charities team carries out regular and extensive professional development. Whether your charity needs an audit or an independent examiners report, you can be rest assured that we have the experience to deliver.
The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.
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