Understanding Independent Examinations

Here's what will be covered on this page:

  1. What is an Independent Examination?
  2. What does an Independent Examiner do?
  3. What is the role of the Trustee?
  4. Other services Connected Voice provides.


What is an Independent Examination?

Charities and charitable companies with a yearly income of between £25,000 and £999,999 are required to have an Independent Examination of their accounts and accounting records.

An Independent Examiner carries out sufficient work to provide assurance that:

  • No evidence was found of a lack of accounting records
  • Nor of the accounts failing to reflect those records
  • Nor of the accounts failing to comply with the relevant legislation
  • No other matter needs to be reported, such as:
    • Material expenditure outside of the charity's business
    • The examiner not being given all the information they require (if applicable)
    • The Trustee report being agreeable with financial statements

Independent Examinations are just one important element in a larger system of regulation and scrutiny of charities.
 

What does an Independent Examiner do?

  • An Independent Examiner points out any issues with the allocation of income and expenditure to funds.
  • An Independent Examiner points out any issues with bank reconciliations (balance at year-end).
  • An Independent Examiner points out any issues with fixed assets or investments held by the charity.
  • An Independent Examiner points out any issues with money owed to the charity, or money owed by the charity to others.

And here's a list of what an Independent Examiner cannot do:

  • They cannot act as the accountant or the bookkeeper for the charity.
  • They cannot action payroll transactions for the charity.
  • They cannot action VAT returns for the charity.
     

What is the role of the Trustee?

Charity law requires all Trustees to prepare accounts for their charity. The Trustees of registered charities must also prepare a Trustees' Annual Report. Combined, the report and accounts tell the Charity Regulator, donors and others what the charity is set up to do, what it has done in the year, and how it raised and spent its money.
 

Other services Connected Voice provides

  • As part of the Independent Examiner's fee, we also include the creation (from the Independent Examination) of the financial statements for submission to the Charity Commission and Companies House.
  • For an additional fee, we can submit the annual corporation tax return to HMRC.
  • We also offer financial reviews for CICs, limited companies, and non-registered groups.


Contacts
For more information about our Independent Examination services, contact our Charity Independent Examiner Doug Maltman at douglas.maltman@connectedvoice.org.uk, or our Independent Examiner Lilian Hetherington at lilian.hetherington@connectedvoice.org.uk