The charity regulators have previously published guidance about the matters of material significance that must be reported as a legal duty
This new guidance provides examples of the matters that may be reported to the charity regulators. These are not the same as the matters of material significance, which are serious and must always be reported
This guidance applies to the auditors and independent examiners of all UK charities.
When in doubt, report it
Where an examiner or auditor is in doubt about whether they should report a matter, the preference of the UK charity regulators is that it should be reported and the regulators can then determine what action, if any, is required
What is a relevant matter?
This is a very open ended question. Each of the regulators publishes frameworks of what issues are relevant to them and of the matters which they expect charity trustees to report to them.
A relevant matter will be one which is not required to be reported (under the matters of material significance guidance) but which the auditor or examiner feels the regulator will still be interested in knowing.
The guidance is clear that minor issues and honest mistakes need not be reported, particularly if the trustees have already taken remedial action.
Examples of issues which may be reported include:
- Immaterial incorrect expenditure of restricted funds
- Large donations from unknown sources
- Financial security and lack of financial oversight, for example with only the treasurer considering accounting information.
How does this affect your work?
The guidance is clear that no additional work is required of the auditor or examiner; only matters identified as part of their normal work need to be considered.
For more information, on how Bevan & Buckland can help you with charity reporting. Please contact Michael Jones on 01792 484555 on via email michael.jones@bevanbuckland.co.uk