Charity Audits

It’s a difficult period for charities, not-for-profits and the third sector. We’ve enabled our clients in the sector to reduce their audit costs – and increase savings and cash flow.

We have auditors with specialisms in:

  • Charity audits.
  • Charity Independent Examinations.
  • Charity VAT.

We take a risk based approach to reduce “misstatements” and to design audit tests to ensure your audit report is factually accurate.

We are regulated by ICAEW. Our audits are fully compliant with:

Our staff have led audits of national charities as well as some Oxford colleges.

Benefits of Our Charity Audits

We ensure:

  • You are compliant with all legislation.
  • You better understand your commercial risks.
  • Make the best use of tax regime.
  • Optimise VAT.
  • Operate efficiently.
  • Increase control.

Benefits of Our Services

  • We are a full-service firm, based in West London – significantly less expensive than a typical firm based in Central London.
  • We can audit partially remotely.
  • We minimise your time required for the audit as we have significant experience auditing a wide range of systems such as:
    • Microsoft Dynamics.
    • Sage Line 50 and 200.
  • We’re a mid-sized firm with the resources to meet your charity audit requirements – and are small enough to care.

Charity Audit Case Studies

Case Studies Client 1

  • The charitable company had problem with funds accounting and more specifically control over restricted funds.
  • We helped and trained their finance team set up their Sage 50 software to enable them to control their charitable funds.
  • The charitable company is now able to report charitable funds and to ensure there is no overspend on restricted funds.

Case Studies Client 2: Charity Shop

  • The company was set up with the intention of raising funds for its parent company, a charity called CAPE. It was not maximising the tax advantages available.
  • We advised their CEO to set up the retail gift aid scheme so as to reclaim gift aid tax on the sale of donated goods.
  • We then advised the client to register for VAT – so that they could reclaim VAT on their costs – without having to increase the price for the sale of donated goods.
  • These resulted in additional income and costs savings which meant the amount that could be donated as gift aid to the parent charity increased.

Case Studies Client 3 Arts Charity

  • The charitable company were not fully compliant with the Charities SORP and needed help  transitioning from the Charities SORP (FRSSE 2015) to Charities SORP (FRS 102).
  • They also staged live theatrical productions but had not considered the availability of theatre tax relief incentives to help improve their cash flows.
  • We advised their Finance team on the requirements of the Charities SORP to ensure compliance. 
  • We discussed with the finance committee the incentives available under theatre tax relief.
  • The statutory financial statements  now comply with the Charities SORP.
  • The Trustees are reviewing their theatrical productions in light of the advice received under the theatre tax relief.

Case Studies Client 4 Arts charity

  • The charitable company had staged loss making theatrical productions but required advise on whether these losses could be tax relieved. The charity was not complying with the legislation.
  • We advised the charity about the availability of theatre tax relief. We reviewed, prepared and filed claims for theatre tax with HMRC.
  • The charity received a payable tax credit of £19,000 from HMRC in theatre tax credit following our help.

Contact us to learn how we can help with your charity audit.