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2022-04-30-accounts

LEICESTER SIKH CENTRE & GURU AMARD DAS GURDWARA 219-227 CLARENDON PARK ROAD LEICESTER LE2 3AN

TELEPHONE: 0116 2701 705

REGISTERED CHARITY No. 1017427

CHAIRPERSON ANNUAL REPORT

FOR THE PERIOD OF 1[ST] MAY 2021 TO 30[TH] 2022

The Leicester Sikh Centre is also known as Guru Amar Das Gurdwara, the centre although still provide and maintain the existing services and introduce activities as needed by the community.

GENERAL CHARITABLE PURPOSES

1 A drop in seven days a week

2 Lunch on club which is held twice a week funded by the centre

3 keep fit classes for the 50+ for Men and Women. There are separate facilities provided for men and women , classes are held twice a week.

RELIGIOUS ACTIVITIES

1 There is a morning and evening services and a large gathering over the weekend.

2 All-important occasions such as VASAKHI , DIWALI and other days related to the life of the Gurus also celebrated. On these days attendance exceed 400 to 500 people.

EDUCATION

1 There are Punjabi teaching classes held for 6 -18 years olds which take place three times a week. The centre has a well-stocked Library with books on various topics, artworks such as religious and historical paintings are displayed. The library also house computers which has internet access.

2 The Centre allows for visits from children from various Schools , Colleges and sometimes Universities to learn about Sikh religious.

SPORTS AND RECREATION

1 The centre sponsors a football team called the Leicester Sikh Centre and Guru Amar das Gurdwara football club.

2 There are Gatka (Sikh martial art) classes taught regularly.

3 An annual festival known as Teeyan Da Mela organised be the centre women group, This mela is largely for the young women, held one a year.

CHARITABLE WORK

1 The centre is committed to help people in difficulties such as natural disasters like COVID-19 Such like ;we offer financial help and we hold fund raising event for KHASLA AID CHARITY;WHICH PROVIDE HELP ALL OVER THE WORLD for needy people. Their main aim is to provide Food and shelter where ever is required.

Covid-19 time in 2020 we raised fund for NHS Leicester Hospitals charity and Leicester Social services .£25000 and £5000 respectively. We provide LANGAR (FOOD) TO overseas students daily for 100 to 150 students and in need of food people visit the gurdwara.

ENVIRONMENT AND CONVERSION

Our centre is keen on recycling and wastage is separated to make easy separation.

2 To enhance the surrounding area of the main building , seasonal flowers and greenery is planted.

OTHER AGENCIES

The centre is affiliated with Local Charities such as age concern, Lunch on Clubs and other religious namely Hindu Temples, churches and Gurdwaras.

Future Plans

We always looking for available and suitable piece of land with a view to purchase and develop it

Recently we upgraded the kitchen and the toilets for men and women also installed the new internal doors in corridors and to langar hall.

With the home office funding , new security cameras and burglar alarm and new fence in the rear parking installed.

Yours sincerely

Mrs Jagdev Kaur Gill CHAIRPERPERSON

REGISTERED CHARITY NUMBER: 1017427

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 30 April 2022

for

Leicester Sikh Centre and Guru Amardas Gurdwara

Leicester Sikh Centre and Guru Amardas Gurdwara

Contents of the Financial Statements for the Year Ended 30 April 2022

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 13
Detailed Statement of Financial Activities 14 to 15

Leicester Sikh Centre and Guru Amardas Gurdwara

Report of the Trustees for the Year Ended 30 April 2022

The trustees present their report with the financial statements of the charity for the year ended 30 April 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objectives of the charity as laid down in the Declaration of Trust dated 1 November 2014 are;

Significant activities

The charity has broadly two activities that further the objectives. The charity's property houses the Guru Amar Das Gurdwara which provides for all religious needs of the community. The property also functions as a community centre where numerous activities take place for members.

Public benefit

The trustees have had due regard to guidance published by the Charity Commission with regard to public benefit and consider that the charity acts in accordance with guidance.

Grantmaking

Grants are made to other institutions to provide releif of the aged, sick, infirm and disabled and of poverty.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the year the charity has provided a number of specific activities in accordance with its objectives:

FINANCIAL REVIEW

Financial position

The total income for the year was £174,791 (2021: £174,155) which, after deducting expenditure of £162,184 (2021: £135,404) resulted in net income of £12,607 (2021: £38,751).

At 30 April 2022 the charity had total reserves of £1,029,521 (2021: £1,016,914). £33,740 (2021: £40,970) of this is held in restricted funds.

Donations are the principle funding source which allows the Charity to run the building and offer religious ceremonies, education and facilities to the local community.

Page 1

Leicester Sikh Centre and Guru Amardas Gurdwara

Report of the Trustees for the Year Ended 30 April 2022

FINANCIAL REVIEW

Reserves policy

The trustees have agreed a reserves policy, that specifies a range of levels, considered necessary to protect the operations of the charity in the event of any loss of anticipated income. The levels set aim to cover a between three to six months of unrestricted expenditure and a contingency in respect of costs associated with the premises.

The level of reserves held at 30 April 2022, after deducting the value of tangible assets, exceeded the level specified in the policy. The charity has considerable liquid reserves which are expected to be utilised in the continuing overhaul of the premises in order to maintain the aging premises and meet with the changing needs of the community.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

Freehold Property

Jagdev Kaur Gill and Sukhdev Singh Sangha hold title to the Freehold Property on behalf of the charity.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1017427

Principal address

219 - 227 Clarendon Park Road Leicester Leicestershire LE2 3AN

Trustees

S S Sangha D Singh A Singh J Singh S S Bains H S Gawera R S Gawera R S Minhas J K Gill H S Gill S S Bains S S Seehra R Rana A S Dosanjh H K Rai

Independent Examiner

torr waterfield Park House 37 Clarence Street Leicester Leicestershire LE1 3RW

Page 2

Leicester Sikh Centre and Guru Amardas Gurdwara

Report of the Trustees for the Year Ended 30 April 2022

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

................................................................. J Singh - Trustee

Page 3

Independent Examiner's Report to the Trustees of Leicester Sikh Centre and Guru Amardas Gurdwara

Independent examiner's report to the trustees of Leicester Sikh Centre and Guru Amardas Gurdwara

I report to the charity trustees on my examination of the accounts of Leicester Sikh Centre and Guru Amardas Gurdwara (the Trust) for the year ended 30 April 2022.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Nishitkumar Bathia FCA torr waterfield Park House 37 Clarence Street Leicester Leicestershire LE1 3RW

Date: .............................................

Page 4

Leicester Sikh Centre and Guru Amardas Gurdwara

Statement of Financial Activities for the Year Ended 30 April 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Gurdwara
Investment income
2
Total
EXPENDITURE ON
Charitable activities
3
Community Centre
Gurdwara
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
Unrestricted
fund
£
150,449
-
6,000
156,449
25,178
111,434
136,612
19,837
975,944
995,781
Restricted
funds
£
18,342
-
-
18,342
2,169
23,403
25,572
(7,230)
40,970
33,740
30.4.22
Total
funds
£
168,791
-
6,000
174,791
27,347
134,837
162,184
12,607
1,016,914
1,029,521
30.4.21
Total
funds
£
104,930
63,200
6,025
174,155
18,232
117,172
135,404
38,751
978,163
1,016,914

The notes form part of these financial statements

Page 5

Leicester Sikh Centre and Guru Amardas Gurdwara

Balance Sheet

30 April 2022

Notes
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Debtors
10
Investments
11
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
13
Unrestricted funds
Restricted funds
TOTAL FUNDS
Unrestricted
fund
£
652,164
3,275
251,500
95,825
350,600
(6,983)
343,617
995,781
995,781
Restricted
funds
£
33,740
-
-
-
-
-
-
33,740
33,740
30.4.22
Total
funds
£
685,904
3,275
251,500
95,825
350,600
(6,983)
343,617
1,029,521
1,029,521
995,781
33,740
1,029,521
30.4.21
Total
funds
£
708,139
-
251,500
67,390
318,890
(10,115)
308,775
1,016,914
1,016,914
975,944
40,970
1,016,914

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. J Singh - Trustee

The notes form part of these financial statements

Page 6

Leicester Sikh Centre and Guru Amardas Gurdwara

Notes to the Financial Statements

for the Year Ended 30 April 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Financial reporting standard 102 - reduced disclosure exemptions

The charity has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% on cost and includes land not being depreciated
Improvements to property - 10% on cost
Plant and machinery - 20% on cost
Fixtures and fittings - 15% on cost
Computer equipment - 33% on cost

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Page 7

continued...

Leicester Sikh Centre and Guru Amardas Gurdwara

Notes to the Financial Statements - continued for the Year Ended 30 April 2022

1. ACCOUNTING POLICIES - continued

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Current asset investments

Current asset investments comprises cash on deposit with a maturity of less than one year, held for investment purposes rather than to meet short-term cash commitments.

2. INVESTMENT INCOME

INVESTMENT INCOME
30.4.22 30.4.21
£ £
Rents received 6,000 6,000
Bank account interest - 25
6,000 6,025

3. CHARITABLE ACTIVITIES COSTS

Grant
funding of
activities
Direct
(see note
Costs
4)
£
£
Community Centre
-
-
Gurdwara
66,032
5,001
66,032
5,001
GRANTS PAYABLE
Gurdwara
The total grants paid to institutions during the year was as follows:
NHS
LCC Social Services
Khalsa Aid International
Sikh Troops War Memorial
Support
costs (see
note 5)
£
27,347
63,804
91,151
30.4.22
£
5,001
30.4.22
£
-
-
-
5,001
5,001
Totals
£
27,347
134,837
Totals
£
27,347
134,837
162,184
30.4.21
£
32,500
30.4.21
£
25,000
5,000
2,500
-
32,500

4. GRANTS PAYABLE

Page 8

continued...

Leicester Sikh Centre and Guru Amardas Gurdwara

Notes to the Financial Statements - continued for the Year Ended 30 April 2022

5. SUPPORT COSTS

Management
£
Community Centre
26,830
Gurdwara
62,599
89,429
Governance
Finance
costs
£
£
67
450
155
1,050
222
1,500
Totals
£
27,347
63,804
91,151
Activity Basis of allocation
Management Non-direct costs are split 30% Community Centre and 70% Gurdwara
Finance Non-direct costs are split 30% Community Centre and 70% Gurdwara
Governance costs Non-direct costs are split 30% Community Centre and 70% Gurdwara

These proportions are based on management time allocated to each charitable activity.

6. INDEPENDENT EXAMINER'S REMUNERATION

30.4.22 30.4.21
£ £
Independent Examiner's Fees - External scrutiny and report 500 600
Independent Examiner's Fees - Accountancy services 1,000 1,200
1,500 1,800

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 April 2022 nor for the year ended 30 April 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 30 April 2022 nor for the year ended 30 April 2021.

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Gurdwara
Investment income
Total
EXPENDITURE ON
Charitable activities
Community Centre
Gurdwara
Total
Unrestricted
fund
£
97,962
15,000
6,025
118,987
16,064
104,022
120,086
Restricted
funds
£
6,968
48,200
-
55,168
2,168
13,150
15,318
Total
funds
£
104,930
63,200
6,025
174,155
18,232
117,172
135,404

Page 9

continued...

Leicester Sikh Centre and Guru Amardas Gurdwara

Notes to the Financial Statements - continued for the Year Ended 30 April 2022

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
9.
TANGIBLE FIXED ASSETS
COST
At 1 May 2021
Additions
At 30 April 2022
DEPRECIATION
At 1 May 2021
Charge for year
At 30 April 2022
NET BOOK VALUE
At 30 April 2022
At 30 April 2021
Unrestricted
Restricted
fund
funds
£
£
(1,099)
39,850
977,042
1,121
975,943
40,971
Improvements
Freehold
to
property
property
£
£
527,279
82,021
-
14,000
527,279
96,021
-
8,202
8,436
9,602
8,436
17,804
518,843
78,217
527,279
73,819
Total
funds
£
38,751
978,163
1,016,914
Plant and
machinery
£
-
1,350
1,350
-
270
270
1,080
-

Page 10

continued...

Leicester Sikh Centre and

Guru Amardas Gurdwara

Notes to the Financial Statements - continued for the Year Ended 30 April 2022

9. TANGIBLE FIXED ASSETS - continued
Fixtures
and Computer
fittings equipment Totals
£ £ £
COST
At 1 May 2021 125,114 1,825 736,239
Additions - - 15,350
At 30 April 2022 125,114 1,825 751,589
DEPRECIATION
At 1 May 2021 19,296 602 28,100
Charge for year 18,674 603 37,585
At 30 April 2022 37,970 1,205 65,685
NET BOOK VALUE
At 30 April 2022 87,144 620 685,904
At 30 April 2021 105,818 1,223 708,139
Included in cost or valuation of land and buildings is freehold land of £105,455 which is not
depreciated.
10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.4.22 30.4.21
£ £
Prepayments and accrued income 3,275 -
11. CURRENT ASSET INVESTMENTS
30.4.22 30.4.21
£ £
Short term deposits 251,500 251,500
12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.4.22 30.4.21
£ £
Trade creditors 5,483 3,552
Accruals and deferred income 1,500 6,563
6,983 10,115

Page 11

continued...

Leicester Sikh Centre and Guru Amardas Gurdwara

Notes to the Financial Statements - continued for the Year Ended 30 April 2022

13. MOVEMENT IN FUNDS

At 1.5.21
£
Unrestricted funds
General fund
975,944
Restricted funds
CCTV and Security
40,970
TOTAL FUNDS
1,016,914
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
156,449
Restricted funds
Giani
18,342
CCTV and Security
-
18,342
TOTAL FUNDS
174,791
Comparatives for movement in funds
At 1.5.20
£
Unrestricted funds
General fund
977,042
Restricted funds
Lunch club
269
NHS donations
852
CCTV and Security
-
1,121
TOTAL FUNDS
978,163
Net
movement
in funds
£
19,837
(7,230)
12,607
Resources
expended
£
(136,612)
(18,342)
(7,230)
(25,572)
(162,184)
Net
movement
in funds
£
(1,098)
(269)
(852)
40,970
39,849
38,751
At
30.4.22
£
995,781
33,740
1,029,521
Movement
in funds
£
19,837
-
(7,230)
(7,230)
12,607
At
30.4.21
£
975,944
-
-
40,970
40,970
1,016,914

Page 12

continued...

Leicester Sikh Centre and Guru Amardas Gurdwara

Notes to the Financial Statements - continued for the Year Ended 30 April 2022

13. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Giani
Lunch club
NHS donations
CCTV and Security
TOTAL FUNDS
Incoming
resources
£
118,987
6,968
-
-
48,200
55,168
174,155
Resources
Movement
expended
in funds
£
£
(120,085)
(1,098)
(6,968)
-
(269)
(269)
(852)
(852)
(7,230)
40,970
(15,319)
39,849
(135,404)
38,751

Giani fund

The Giani fund consists of donations received by the Charity for onward payment to the priests. All donations received are paid in the same accounting period.

Lunch Club fund

The Lunch Club fund consists of donations received towards offering a lunch club service for older people to allow them to maintain their independence and reduce isolation.

NHS Donations

The NHS Donations fund consists of donations received by the Charity for onward payment to the NHS.

CCTV and Security

A grant of £48,200 was received during the year ended 30 April 2021 from the Protective Security funding scheme towards the cost of installing CCTV and Security at the Gurdwara. This amount was fully expended during the year. The fund balance of £33,740 represents the net book value of the CCTV and Security assets held at 30 April 2022.

14. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 30 April 2022.

Page 13

Leicester Sikh Centre and Guru Amardas Gurdwara

INCOME AND ENDOWMENTS
Donations and legacies
Donations to Gianis
Donations
Donated services and facilities
Investment income
Rents received
Bank account interest
Charitable activities
Grants
Total incoming resources
EXPENDITURE
Charitable activities
Donations to Gianis
Priest fees
Groceries
Grants to institutions
Support costs
Management
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Sundries
Repairs and renewals
Motor and travel
Cleaning
Freehold property
Improvements to property
Plant and machinery
Fixtures and fittings
Computer equipment
Detailed Statement of Financial Activities
for the Year Ended 30 April 2022
30.4.22
£
18,342
150,449
-
168,791
6,000
-
6,000
-
174,791
18,342
28,177
19,513
5,001
71,033
3,439
1,722
15,495
-
128
3,794
21,004
122
6,140
8,436
9,602
270
18,674
603
89,429
30.4.21
£
6,968
95,439
2,523
104,930
6,000
25
6,025
63,200
174,155
6,968
25,213
5,372
32,500
70,053
2,626
6,698
16,000
566
1,812
4,526
3,213
10
-
-
8,202
-
19,296
602
63,551

This page does not form part of the statutory financial statements

Page 14

Leicester Sikh Centre and Guru Amardas Gurdwara

Detailed Statement of Financial Activities
for the Year Ended 30 April 2022
30.4.22
£
Management
Finance
Bank charges
222
Governance costs
Independent examiner's remuneration
1,500
Total resources expended
162,184
Net income
12,607
30.4.21
£
-
1,800
135,404
38,751

This page does not form part of the statutory financial statements

Page 15

17 February 2023 Our Ref: AB / NB / 4856

PRIVATE AND CONFIDENTIAL The Board of Trustees Leicester Sikh Centre 219-227 Clarendon Park Road Leicester Leicestershire LE2 3AN

Dear Sirs

INDEPENDENT EXAMINATION OF THE FINANCIAL STATEMENTS OF LEICESTER SIKH CENTRE REPORT TO MANAGEMENT

We are pleased to report to you that we have completed the independent examination of the financial statements of Leicester Sikh Centre for the year ended 30 April 2022.

As part of our communication with you at the end of the examination, we have discussed in the forthcoming paragraphs certain matters that need to be communicated to the trustees.

Other findings and recommendations

As part of our examination, we also aim to provide value-added recommendations which may not constitute a material misstatement of the financial statements or a significant deficiency in the charity’s controls.

A number of such matters were identified in the examination for Leicester Sikh Centre which we consider should be brought to your attention. Accompanying this letter is a memorandum (Appendix 1) noting these points together with any recommendations we have for possible improvements which could be made. We shall be grateful if you will enter the Board's comments against each point under the "comments" column of the memorandum and return it to us in due course.

This report has been prepared for the sole use of the trustees of Leicester Sikh Centre and must not be shown to third parties without our prior written consent. No responsibilities are accepted by Torr Waterfield Limited towards any party acting or refraining from action as a result of this report.

Finally, we would like to express our thanks to all members of staff at Leicester Sikh Centre who assisted us in carrying out our work.

Yours faithfully

Torr Waterfield Limited

APPENDIX 1

LEICESTER SIKH CENTRE

Points noted during the course of our examination for the year ended 30 April 2022

1. Payments to Priests and cleaners

The payments made to Priests for their services should either be supported by an valid invoice provided by the supplier or should be processed through a PAYE scheme, subject to their employment status with the charity.

Comment:

2. Cash Expenses

A large portion of the Charity’s expenditure is paid using petty cash generated from donations, which has been recorded in the Charity’s cash book records.

To improve the audit trail and internal controls of Charities, the Charity Commission recommends that cash collected is banked by the charity as soon as possible without the deduction of expenses. Subsequent payments should be made electronically.

Source documentation such as purchase invoices should be retained by the Charity to support payments made (whether by cash or by electronic means) and should be available for inspection during the independent examination.

Comment:

3. Petty cash count

Regular petty cash counts should take place to reconcile the amount held per the cash book agrees to the physical cash held.

Comment:

4. Governing document audit requirement

The governing document provided specifies an audit is required however we believe there is a later version of the deed of trust in issue. If the latest version still refers to an audit then we would suggest this is updated to include reference to ‘external scrutiny as required by the Charities Act 2011’ which allows an independent examination to take place. Until the deed of trust is updated, the audit exemption of the charity could be challenged.

Comment: