Who Would Be A Charity Auditor
When things are bad they are often worse. Having survived a whistle blowing episode in 2014 and remaining independent of the Age UK consolidation you would expect this charity to take extra care. With new enthusiasm let us hope this is what happens. Extracts from the latest published report and accounts continue the story.
‘Due to the fields of activity in which the charity operates and its trading enterprises, there is a risk that the charity could suffer serious reputational damage as a consequence of the actions of its staff (e.g. in
advocating for clients), volunteers, trustees or its wider interests such as campaigning. This risk is managed by ensuring …. that good governance arrangements are in place (e.g. declarations of interest and governance polices) to ensure all relevant legal, statutory
and regulatory compliance is adhered to.
The Trustees who served during the year to 31″March but have recently resigned were:
R Akwa was appointed to the Board on 26 September 2018.
Post Balance Sheet event
Since the year end, the group concluded negotiations with a major supplier which resulted in the cancellation of certain amounts owed by the charity at the year end. The benefit of this transaction which relates to this financial year end is £105,975 and has been recognised in these financial reports
The amount due from the subsidiary … was unsecured, interest free and there were no fixed terms for repayment. The Trustees have considered the recoverability of this amount which was £321,484 (2017: f325,968) and in the opinion of the Trustees, the full amount should be recoverable and no provision against that amount needs to be made.’
Oddities from a cursory review of the report and accounts lodged with the charities commission include the worries of a third year of excess costs over income: debtors of quarter of a million pounds when most shop income is taken as and when a sale arises: Lease commitments lasting beyond 5 years that over time approach one million pounds: Profit related pay introduced at loss making charity shops Handy Help Ltd
- Overtrading is a business risk and having opted for a business-charity model this outfit seems to have fallen foul in many ways. Such a badly broken business would be closed, as arguably this charity should be but how do they extract themselves and who will fill the social needs.
- The charity has a 33% interest in Interhelp Limited the Age Concern company selling insurance and financial products. There is a negative balance sheet and adverse publicity has dogged the project.