Charities: Management of financial difficulties
The Charity Commission has published two reports which detail the need for charities to take early steps to manage financial difficulties.
The Accounts Monitoring Report
This details the findings of a review of 94 charities whose auditors highlighted that they may be in financial difficulty. The report documents the main reasons charities reviewed had found themselves in financial difficulty, actions being taken by trustees, how successful those actions have been, action taken by the Commission and the lessons to be learned by other charities.
[sc name=”find-out-cta” title=”The Accounts Monitoring Report” content=”To read or download a full copy of the report, please click below” href=”https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/554358/amr_charities_with_audit_reports_identifying_that_they_may_be_in_financial_difficulty.pdf”]
The Group Case Report: ”Charities at risk of financial distress”
This details the findings of more detailed monitoring and compliance visits to 5 of the original 94 charities and another 5 charities in financial distress.
[sc name=”find-out-cta” title=”The Group Case Report” content=”To read or download a full copy of the report, please click below” href=”https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/554357/charities_at_risk_of_financial_distress.pdf”]
Both reports communicate the wider lessons to be learned by other charities. The Commission will now be working with sector bodies and other technical experts to update its guidance for charities and improve its accessibility and reach.