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Does level 3 allow me to complete final accounts for charity commission

KevinHeath
  • 61 posts
  • # 103395

Hi

Just taking a qucik break from doing the level 2 computerised exam before my eyes go wonky :)

In the new year I'll be starting on the level 3 so I cna get my practise license.

At what level can I undertake not for profit and charity accounts. Am I able to undertake final accounts that are acceptabel to the Charity Commission or is it only up to draft accounts that then need to be audited by accountants.

Thanks

Kevin
Trevor
  • 257 posts
  • # 103396

Worth a look !!

http://www.resourcecentre.org.uk/information/charity-reporting-and-accounts/

 

Regards

Trevor

  • Failure is only the opportunity to Begin again, only this time more Wisely. Henry Ford

    Success is the sum of small efforts, repeated day in and day out. Robert Collier


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KevinHeath
  • 61 posts
  • # 103412

Hi Trevor,

 

thanks for the link. some useful information on there.

 

Kevin
Theresa
  • Member
  • 495 posts
  • # 103413

The charity I did some work for I was only working to TB, but the gross income and the fact it was a CIO meant it needed independant examination each year.

It's not clear form the link Trevor gave what qualifications are needed for an IE but I think they either need to be acountants, FICB (I think) or members of the CIIA depending on the size of the charity.
KevinHeath
  • 61 posts
  • # 103415

Hi Theresa

 

Anyone can perform independent examinations provided they have sufficient financial skills for charities up to £250.000 turn over.

For charities with turnovers between £250,000 and £500,000 the person nees to be  memeber of a professional body who is recognised under section 4 of the charities act - not neccessarily an accounting body as the Professional Institute of Secretaries and Adminsitrators is rcognised as are other non-accounting bodies.

 

For charities over £500,000 turnover a full independant audit is needed by a professional accountant.

Most charities have tunovers of less than £500,000.

The not-for-profit sector is a growing market especially with social enterprise companies - I know I can not do those accounts until I become a full member but there are lots of local community groups to target while I get to that level once I've done level 3.

Lots of small charities and groups are having probelms finding volunteers to take on producing their accounts etc. One local group I've just raised £40,000 for from one of the lotteries have been going 2 years and still not produced a set of accounts because they can not find anyone to do it and they can not afford a fully qualified accountant to produce them.

They could though afford a specialist book-keeper to produce those accounts.

As governmnet cuts start to bite and new local not for profits start to take on the running of services and facilities that used to be run by local governmnet there is going to be a grwoing market for charity accountiing and financial services.

 

Kevin
lainy
  • Member PM.Dip
  • Practice Licence
  • 746 posts
  • # 103416

isnt that what Independent examiner means in our own qualifications? (Ive always wondered).

 

Happy xmas

 

Kind regards and very best wishes

 

Lainy
KevinHeath
  • 61 posts
  • # 103417

Hi Lainy

We can do independant examination of accounts for charities up to £250,000 turnover. 

We can not do indpendant examinations for charities and not-for-profits between £250,000 and £500,000 a year becasue the ICB is not listed as an approved body under the charities act.

 

But if you have a secretary and shw (sexist!) is a member of her professional body then she can do those larger charities for you :)

 

Kevin
Theresa
  • Member
  • 495 posts
  • # 103420

Thanks Kevin,

Nice to learn something new :)

Would that explain why my Dad kept up his membership to the Chartered Secretaries long after he retired?  I know he used to audit a lot of Masonic accounts, he even volunteered at Grand Lodge and the lodges tend to be registered charities. I've never looked into it beyond reading up on the SORP to be sure I was dotting enough i's and crossing sufficient t's to be able to identify exactly how all the income was apportioned out and that restrictive funds were ring fenced as per their limitations.
KevinHeath
  • 61 posts
  • # 103421

Hi Theresa,

It is probably one of the reasons why he kept up the membership of the Institute of Secretaries so he could do the books of the lodges.

I don't forsee a major difficulty if the ICB put together a course and exam based around the SORP. It would probably be at the same level as the course for limited companies - so level 4.

I'm sure if they worked together with the Charities Commission they could put something together that the CC would find acceptable and allowable under section 4.

Section 4 says the person undertaking the independant examination has to be a memeber of a recognised body AND authorised by the body to undertake independant examinations. so bit bit like the diploma in Payroll I guess.

The body I'm looking at applying for to allow me to do the larger independant examinations is the Assoication of Charity Independant Examiners.

They don't run courses or exams but to join you have to provide them with examples of independant examinations that you have overtaken for charities. This is then assessed by a board and you are then either allowed admintance or not.

To be an assoicate meember is easy as this allows you to examine charities upt o250,000 which you can do anyay. So you submit a couple of examples to be accessed.

To be a full member and be allowed to exam charities between 250 and 500,000 you need to submit some legally acceptable independant examination for charities up to 250,000 and then undertake some independant examinations of charities between 250,000 and 500,000. Obviously these can not be submitted to the Charity Commssion but they can be used for assessment for membership of the ACIE.

There are ways around it but I think the ICB couldbe missing out on soemthing here.

Kevin
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