All posts by Jo Fox

Reducing the risk of fraud

Jo Fox

The Charity Commission has highlighted concerns over the level of fraud and mismanagement in the charity sector.

Trustees have overall responsibility for governance and for safeguarding the charity’s assets. Trustees should therefore be alert to fraud, understand what it is and how it may affect the organisation.

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Is your charity making the most effective use of its assets?

Jo Fox

Charity trustees have well known duties of stewardship, which means ensuring that resources are used for charitable purposes and are not put at risk unnecessarily. There is also, of course, a duty to use them effectively.  Three areas to consider are:

Investment
Banking
Property

Remember the case of the Bank of England investing in the payday lender Wonga? Charities might be encouraged to consider an ethical investment policy, so investments don’t compromise the aims of their charity.

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Charities’ management accounts: what do they need to show?

Jo Fox

Consider a charity which delivers services that are funded through a blend of contracts and grant income. To comply with the Charity Statement of Recommended Practice (SORP), the year end accounts need to recognise income from service contracts to the extent that the service had been delivered, whereas grant income would generally be recognised at the point that the grant was receivable.

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