Mark Salway argues that charities should move away from the model of three to six months operational reserves and instead consider unrestricted reserves in terms of the following purposes:
Downturn in income--how much and for how long?
Increase in expenditure--what is the variance you might expect?
To invest for the future--in developing a new project, service or to buy an asset.
To meet one-off costs--where a known liability needs to be met, or for disallowed costs.
For cash flow.
A good reserves policy simply looks down each line and each risk, and sees what level of reserves is needed against each.
Subscribers to Charity Finance can read the full article here.
With immediate effect charity auditors now have to explain to what extent the audit was considered capable of detecting irregularities, including fraud. However, there is no change to the Independent Examination regime.
A week long series of events making Scotland more cyber aware and resilient.
On February 16 ACIE is hosting Javed Akhtar, of @CassCCE to talk about Zakat, Islamic Charities and a need for demonstrating transparency and accountability. The webinar is one hour, and you can book here.
The Beyond Programme's main aim is to help organisations (from charities to social enterprises & CICs to grass roots groups) to:
In general, for the overall Beyond programme, If you’re in a position to share this opportunity, it would be an amazing help!
Some charities are ‘excepted’ from charity registration. This just means they don’t have to register or submit annual returns. Apart from that, the Charity Commission regulates them just like registered charities and can use any of its powers if it needs to.
This exception was due to expire on 31st March 2021. However the Charity Commission and the DCMS have extended it to 2031, by which time all of these should have registered.
A charity is excepted if its income is £100,000 or less and it is in one of the following groups:
They are different from exempt charities, which are exempt from registration and regulation by the commission.
More details about these are on the Charity Commission website Excepted charities - GOV.UK (www.gov.uk)
This extension to 2031 is intended to give excepted charities time to prepare for registration and to allow the Charity Commission as much time as possible to register all excepted organisations in a coordinated way. We understand that the Charity Commission and DCMS will publish details of the proposed phased registration arrangements in the first half of 2021.
We've received reports of a number of frauds that were facilitated in part by lax procedures during the pandemic.
Please remind your clients that dual signatory electronic banking is an important safeguard in interrupting scammers.
That scammers may well take advantage of the disruption to processes and the extensive advice emails, that are likely to occur in January.
The Charity Commission has updated its advice on Managing Finances including:
It is also important that charities not be allowed to 'drift' in their (often generous) response to the pandemic. The Charity Commission has updated it's advice on Purpose and Rules.
In addition to our regular IE workshops, which can be found on the events page, we have a series of on-line webinars across the year.
Format: short talk + Q&A, one hour.
16 Feb-2021 Zakat, Islamic Charities and Accounting Transparency
21-Feb-2021 Receipts and Payment
18-Mar-2121 Taking on a New Client
19-April 2021 Serious Incident Reporting
10-May-2021 How to Read a Set of Accounts for IE
29-June-2021 Fraud and Independent Examination
Charity Finance delivered a report in September assessing how well charities did in lockdown. The key take aways;
Charity Finance’s October included a report on transparent reporting. This remains poor, with particular concerns around:
Manchester Community Central (Macc) is Manchester's equivalent to BVSC. They have recently published a fascinating report, entitled No Going Back, in which Chief Executives from 22 VCS organisations reflect on their experiences of C-19. Read the Report.
The Association of Charity Independent Examiners
Registered Company Limited by Guarantee 7461134Registered in England at1st Floor, Block C, The Wharf, Manchester Road Burnley BB11 1JG
Registered Charity in England & Wales No: 1139609
Registered Charity in Scotland No: SC039066
Telephone: 0131 659 9751 or 07899 891616 Email: firstname.lastname@example.org
Address: 19 Windsor Place Edinburgh EH15 2AJ