Services
Independent Examination of Accounts
Borders Community Action has launched a new initiative to support local organisations with an annual income exceeding £25,000 to undergo an independent examination of their accounts. This initiative is designed to provide trustees, supporters, beneficiaries, and the wider public with the assurance that the charity’s finances are being managed responsibly and transparently.
The Need for Independent Examination
Charities play a crucial role in society, often relying on public donations and grants to carry out their vital work. With such responsibility comes the need for accountability. When a charity’s annual income surpasses £25,000, the trustees are now required to arrange for an independent person or accountancy firm to conduct either an audit or an independent examination of their accounts. This step is essential to maintain public trust and ensure that funds are used effectively and ethically.
What is an Independent Examination?
An independent examination is a form of scrutiny that is less intensive than an audit. It involves an examiner checking specific matters within the charity’s accounts, ensuring that the financial records are accurate and properly maintained. Unlike an audit, which requires a comprehensive assessment and an opinion on whether the accounts are ‘true and fair,’ an independent examination is more narrowly defined. This ‘light touch’ approach focuses on verifying key aspects of the accounts without the need for a full-scale audit.
Benefits of Independent Examination
- Cost-Effective
Independent examinations are generally less expensive than audits, making them a more accessible option for many organisations - Focused Scrutiny
The examination targets specific areas, providing a clear and concise review of the organisation’s financial health. - Enhanced Trust
By undergoing an independent examination, organisations can demonstrate their commitment to transparency and accountability, strengthening their reputation among donors and the public.
If you are interested and want to find out more about this new service, please contact: info@borderscommunityaction.org.uk.