In the UK, charity audits are an essential yet intricate part of a trustee’s responsibility – ensuring transparency and fostering trust among stakeholders, including donors, beneficiaries, and regulators.
Understanding the ins and outs of charity audits is imperative for trustees who aim to steer their organisations towards success.
The legal requirement for charity audits
UK charity law stipulates that charities with an annual income exceeding £1 million must undergo an external audit.
For charities with an income between £25,000 and £1 million, a less stringent form of external scrutiny, known as an independent examination, is required.
The audit process: What trustees need to know
Whether you are new to undertaking an audit or have previous experience, here are the things that you should consider:
The role of trustees post-audit
Once an audit is complete, trustees have two primary duties to fulfil in relation to the audit report they receive, including:
For trustees, understanding the nuance of UK charity audits is not just a legal requirement, but a cornerstone of responsible governance.
These audits foster trust, ensuring that charities operate within the confines of the law, maintaining a transparent and robust financial health, which in turn, paves the path for sustained success.
Armed with the knowledge and adherence to the principles outlined, trustees can navigate the audit process adeptly, upholding the highest standards of integrity and accountability.
The audit process, thus, becomes not just regulatory compliance but a tool for enhancing the effectiveness and reputation of the charity, steering it towards a future replete with potential and positive impact.
If you have any queries about charity audits or would like any assistance in this area, please speak to our team.