Audit and Independent Report

Voluntary organisations are generally involved with other people’s money – a fact which often carries a greater risk than with an owner-managed business, where a manager retains direct control of the company’s own money. For this reason, the law requires all charities with an annual turnover exceeding £500,000 to be audited.

For charities with a turnover of between £10,000 and £500,000 an audit is not required by law and it may be possible to have an independent examination where the requirements are less.

The benefits of independent auditing

The Charity Commission insists on the independence of the trustees – which generally means that unpaid trustees make the decisions, whilst paid employees do the work. An independent audit can therefore provide a valuable reassurance to the trustees or management committee that the stewardship of external funds – the annual accounts – is true and fair.

Because of our great experience in this sector, we are able to work with our clients towards producing cost-effective ways of avoiding weaknesses and achieving best practice.

Risk-based auditing

Our audit approach is risk-based. We commence each year with an in-depth analytical review to ascertain areas of greater risk. This ensures that detailed sample testing and other audit procedures focus on key areas, ensuring maximum value for money for our clients.

Our practices

Our low staff turnover enables us to offer a level of continuity and consistency that few of the big firms can match. So there’ll be no more time wasted explaining your systems to a new member of staff every year.

At the conclusion of each audit, we write a management letter which identifies any areas of weakness and instances where there might be room for improvement.

GMAK fees for voluntary organisations

Each of our clients is unique – so for that reason, please consider the fee estimates listed below a guide only. Our fees are based on our charge-out rates from 1st April 2007 to 31st March 2008 and are exclusive of VAT.

Fees are based on the amount of time devoted to each client. Past experience shows that the greatest variable occurs in the area of Accounts Production.

We use figures from basic bookkeeping records to produce accounts that conform to the Charities 2005 SORP. However, because some of these records are easier to obtain than others, we quote a range of figures, which allow us to factor in any additional collation time.

Please, note that VAT is not included.