Charity, Not-for-Profit and Third Sector 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 to increase savings and their 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 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

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 to 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 £19,0000 from HMRC in theatre tax credit following our help.

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